XML 28 R18.htm IDEA: XBRL DOCUMENT v3.7.0.1
Fair Value Measurements (Tables)
 9 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
Fair Value of Assets Measured on Recurring Basis
The following tables present the balance of assets and liabilities measured at fair value on a recurring basis.
 
June 30, 2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Financial Assets
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Equity securities
$
522

 
$
—

 
$
—

 
$
522

U.S. government and agency securities
—

 
222,245

 
—

 
222,245

Municipal bonds
—

 
26,736

 
—

 
26,736

Corporate debt securities
—

 
211,209

 
—

 
211,209

Mortgage-backed securities
 
 
 
 
 
 
 
Agency pass-through certificates
—

 
801,393

 
—

 
801,393

Commercial MBS
—

 
8,309

 
—

 
8,309

Total available-for-sale securities
522

 
1,269,892

 
—

 
1,270,414

Interest rate contracts
—

 
1,342

 
—

 
1,342

Total financial assets
$
522

 
$
1,271,234

 
$
—

 
$
1,271,756

 
 
 
 
 
 
 
 
Financial Liabilities
 
 
 
 
 
 
 
Interest rate contracts
$
—

 
$
1,342

 
$
—

 
$
1,342

Commercial loan hedges
—

 
154

 
—

 
154

Borrowings hedges
—

 
2,536

 
—

 
2,536

Total financial liabilities
$
—

 
$
4,032

 
$
—

 
$
4,032


There were no transfers between, into and/or out of Levels 1, 2 or 3 during the nine months ended June 30, 2017.
 
September 30, 2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Financial Assets
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Equity securities
$
101,824

 
$
—

 
$
—

 
$
101,824

U.S. government and agency securities
—

 
259,351

 
—

 
259,351

Municipal bonds
—

 
27,670

 
—

 
27,670

Corporate debt securities
—

 
461,138

 
—

 
461,138

Mortgage-backed securities
 
 
 
 
 
 
 
Agency pass-through certificates
—

 
993,041

 
—

 
993,041

Commercial MBS
—

 
79,870

 
—

 
79,870

Total available-for-sale securities
101,824

 
1,821,070

 
—

 
1,922,894

Interest rate contracts
—

 
20,895

 
—

 
20,895

Total financial assets
$
101,824

 
$
1,841,965

 
$
—

 
$
1,943,789

 
 
 
 
 
 
 
 
Financial Liabilities
 
 
 
 
 
 
 
Interest rate contracts
$
—

 
$
20,895

 
$
—

 
$
20,895

Commercial loan hedges
—

 
3,312

 
—

 
3,312

Borrowings hedges
—

 
31,347

 
—

 
31,347

Total financial liabilities
$
—

 
$
55,554

 
$
—

 
$
55,554
Aggregated Balance of Assets Measured at Estimated Fair Value on a Nonrecurring Basis and Total Losses Resulting from Those Fair Value Adjustments
The following tables present the aggregated balance of assets that were measured at fair value on a nonrecurring basis at June 30, 2017 and June 30, 2016, and the total gains (losses) resulting from those fair value adjustments for the three and nine months ended June 30, 2017 and June 30, 2016. The estimated fair value measurements are shown gross of estimated selling costs.
 
 
June 30, 2017
 
Three Months Ended June 30, 2017
 
Nine Months Ended June 30, 2017
 
Level 1
 
Level  2
 
Level  3
 
Total
 
Total Gains (Losses)
 
(In thousands)
 
 
Impaired loans (1)
$
—

 
$
—

 
$
7,807

 
$
7,807

 
$
(305
)
 
$
(1,666
)
Real estate owned (2)
—

 
—

 
9,777

 
9,777

 
(467
)
 
(1,087
)
Balance at end of period
$
—

 
$
—

 
$
17,584

 
$
17,584

 
$
(772
)
 
$
(2,753
)

(1)
The gains (losses) represent remeasurements of collateral-dependent loans.
(2)
The gains (losses) represent aggregate writedowns and charge-offs on REO.

 
June 30, 2016
 
Three Months Ended June 30, 2016
 
Nine Months Ended June 30, 2016
 
Level 1
 
Level  2
 
Level  3
 
Total
 
Total Gains (Losses)
 
(In thousands)
 
 
Impaired loans (1)
$
—

 
$
—

 
$
15,724

 
$
15,724

 
$
(692
)
 
$
(3,762
)
Real estate owned (2)
—

 
—

 
19,853

 
19,853

 
(614
)
 
(2,944
)
Balance at end of period
$
—

 
$
—

 
$
35,577

 
$
35,577

 
$
(1,306
)
 
$
(6,706
)

(1)
The gains (losses) represent remeasurements of collateral-dependent loans.
(2)
The gains (losses) represent aggregate writedowns and charge-offs on REO.
Fair Value of Financial Instruments by Balance Sheet Grouping
Although management is not aware of any factors that would materially affect the estimated fair value amounts presented below, such amounts have not been comprehensively revalued for purposes of these financial statements since the dates shown, and therefore, estimates of fair value subsequent to those dates may differ significantly from the amounts presented below. 
 
 
 
 
June 30, 2017
 
September 30, 2016
 
 
Level in Fair Value Hierarchy
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
 
 
 
(In thousands)
Financial assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
1
 
$
359,252

 
$
359,252

 
$
450,368

 
$
450,368

Available-for-sale securities
 
 
 
 
 
 
 
 
 
 
Equity securities
 
1
 
522

 
522

 
101,824

 
101,824

U.S. government and agency securities
 
2
 
222,245

 
222,245

 
259,351

 
259,351

Municipal bonds
 
2
 
26,736

 
26,736

 
27,670

 
27,670

Corporate debt securities
 
2
 
211,209

 
211,209

 
461,138

 
461,138

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
 
2
 
801,393

 
801,393

 
993,041

 
993,041

Commercial MBS
 
2
 
8,309

 
8,309

 
79,870

 
79,870

Total available-for-sale securities
 
 
 
1,270,414

 
1,270,414

 
1,922,894

 
1,922,894

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
 
2
 
1,651,528

 
1,630,745

 
1,417,599

 
1,441,556

Total held-to-maturity securities
 
 
 
1,651,528

 
1,630,745

 
1,417,599

 
1,441,556

 
 
 
 
 
 
 
 
 
 
 
Loans receivable
 
3
 
10,654,425

 
11,046,152

 
9,910,920

 
10,414,794

FDIC indemnification asset
 
3
 
8,745

 
9,160

 
12,769

 
12,095

FHLB and FRB stock
 
2
 
124,990

 
124,990

 
117,205

 
117,205

        Other assets - interest rate contracts
 
2
 
1,342

 
1,342

 
20,895

 
20,895

 
 
 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
 
 
Customer accounts
 
2
 
10,634,278

 
10,208,813

 
10,600,852

 
10,184,321

FHLB advances
 
2
 
2,275,000

 
2,319,974

 
2,080,000

 
2,184,671

        Other liabilities - interest rate contracts
 
2
 
1,342

 
1,342

 
20,895

 
20,895

Other liabilities - commercial loan hedges
 
2
 
154

 
154

 
3,312

 
3,312

        Other liabilities - borrowings hedges
 
2
 
2,536

 
2,536

 
31,347

 
31,347

The following table presents the fair value and balance sheet classification of derivatives at June 30, 2017 and September 30, 2016:
 
 
Asset Derivatives
 
Liability Derivatives
 
 
June 30, 2017
 
September 30, 2016
 
June 30, 2017
 
September 30, 2016
 
 
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
 
$
1,342

 
Other assets
 
$
20,895

 
Other liabilities
 
$
1,342

 
Other liabilities
 
$
20,895

Commercial loan hedges
 
Other assets
 
—

 
Other assets
 
—

 
Other liabilities
 
154

 
Other liabilities
 
3,312

Borrowings hedges
 
Other assets
 
—

 
Other assets
 
—

 
Other liabilities
 
2,536

 
Other liabilities
 
31,347

 
 
 
 
$
1,342

 
 
 
$
20,895

 
 
 
$
4,032

 
 
 
$
55,554
Reconciliation of Amortized Cost to Fair Value of Available-for-Sale and Held-to-Maturity Securities
The following tables provide a reconciliation of amortized cost to fair value of available-for-sale and held-to-maturity securities.
 
June 30, 2017
 
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
 
Yield
 
Gains
 
Losses
 
 
(In thousands)
Available-for-sale securities

 
 
 
 
 
 
 
 
U.S. government and agency securities due
 
 
 
 
 
 
 
 
 
Within 1 year
$
9,300

 
$
352

 
$
—

 
$
9,652

 
10.38
%
1 to 5 years
9,933

 
3

 
—

 
9,936

 
1.46

5 to 10 years
55,202

 
—

 
(944
)
 
54,258

 
1.95

Over 10 years
149,205

 
107

 
(913
)
 
148,399

 
1.89

Equity securities due
 
 
 
 
 
 
 
 
 
1 to 5 years
500

 
22

 
—

 
522

 
1.80

Corporate debt securities due
 
 
 
 
 
 
 
 
 
Within 1 year
28,094

 
18

 
(1
)
 
28,111

 
2.07

1 to 5 years
63,587

 
1,621

 
—

 
65,208

 
2.85

5 to 10 years
119,959

 
—

 
(2,069
)
 
117,890

 
2.56

Municipal bonds due
 
 
 
 
 
 
 
 
 
1 to 5 years
2,337

 
14

 
—

 
2,351

 
1.23

5 to 10 years
1,359

 
60

 
—

 
1,419

 
2.05

Over 10 years
20,348

 
2,618

 
—

 
22,966

 
6.45

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
795,786

 
8,553

 
(2,946
)
 
801,393

 
2.87

Commercial MBS
8,350

 
—

 
(41
)
 
8,309

 
3.23

 
1,263,960

 
13,368

 
(6,914
)
 
1,270,414

 
2.77

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
1,651,528

 
5,088

 
(25,871
)
 
1,630,745

 
3.17

 
$
2,915,488

 
$
18,456

 
$
(32,785
)
 
$
2,901,159

 
2.97
%
 
 
September 30, 2016
 
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
 
Yield
 
Gains
Losses
 
 
(In thousands)
Available-for-sale securities
 
 
 
 
 
 
 
 
 
U.S. government and agency securities due
 
 
 
 
 
 
 
 
 
Within 1 year
$
21,284

 
$
—

 
$
(59
)
 
$
21,225

 
0.81
%
1 to 5 years
12,477

 
1,027

 
(11
)
 
13,493

 
7.94

5 to 10 years
48,134

 
—

 
(1,589
)
 
46,545

 
1.14

Over 10 years
182,051

 
27

 
(3,990
)
 
178,088

 
1.33

Equity Securities
 
 
 
 
 
 
 
 
 
1 to 5 years
100,422

 
1,402

 
—

 
101,824

 
1.90

Corporate bonds due
 
 
 
 
 
 
 
 
 
Within 1 year
278,094

 
325

 
(53
)
 
278,366

 
1.33

1 to 5 years
63,481

 
928

 
(113
)
 
64,296

 
2.47

5 to 10 years
69,955

 
—

 
(2,417
)
 
67,538

 
1.96

Over 10 years
50,000

 
938

 
—

 
50,938

 
3.00

Municipal bonds due
 
 
 
 
 
 
 
 
 
1 to 5 years
2,315

 
2

 
—

 
2,317

 
1.23

5 to 10 years
1,335

 
38

 
—

 
1,373

 
2.05

Over 10 years
20,363

 
3,617

 
—

 
23,980

 
6.45

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
978,955

 
17,118

 
(3,032
)
 
993,041

 
2.58

Commercial MBS
80,318

 
—

 
(448
)
 
79,870

 
1.91

 
1,909,184

 
25,422

 
(11,712
)
 
1,922,894

 
2.22

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
1,417,599

 
24,171

 
(214
)
 
1,441,556

 
3.18

 
$
3,326,783

 
$
49,593

 
$
(11,926
)
 
$
3,364,450

 
2.62
%
Schedule of Unrealized Losses and Fair Value of Securities
The following tables show the unrealized gross losses and fair value of securities as of June 30, 2017 and September 30, 2016, by length of time that individual securities in each category have been in a continuous loss position. The decline in fair value since purchase is attributable to changes in interest rates. Because the Company does not intend to sell these securities and does not consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider these investments to be other than temporarily impaired.
 
June 30, 2017
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 debt securities
$
(257
)
 
$
54,743

 
$
(1,812
)
 
$
68,147

 
$
(2,069
)
 
122,890

U.S. government and agency securities
(452
)
 
24,750

 
(1,406
)
 
147,589

 
(1,858
)
 
172,339

Agency pass-through certificates
(22,365
)
 
1,314,631

 
(6,493
)
 
337,469

 
(28,858
)
 
1,652,100

 
$
(23,074
)
 
$
1,394,124

 
$
(9,711
)
 
$
553,205

 
$
(32,785
)
 
$
1,947,329



September 30, 2016
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 debt securities
$
—

 
$
—

 
$
(2,582
)
 
$
100,467

 
$
(2,582
)
 
$
100,467

U.S. government and agency securities
(11
)
 
3,167

 
(5,638
)
 
220,613

 
(5,649
)
 
223,780

Agency pass-through certificates
(1,278
)
 
301,030

 
(2,417
)
 
232,407

 
(3,695
)
 
533,437

 
$
(1,289
)
 
$
304,197

 
$
(10,637
)
 
$
553,487

 
$
(11,926
)
 
$
857,684