Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2017

Fair value of assets measured on recurring basis

The following table presents the balance and level in the fair value hierarchy for assets and liabilities that are measured at fair value on a recurring basis.



	September 30, 2017
	Level 1		Level 2		Level 3		Total
	(In thousands)
Available-for-sale securities
Equity securities	$	522	$	—	$	—	$	522
U.S. government and agency securities	—		211,077		—		211,077
Municipal bonds	—		26,624		—		26,624
Corporate debt securities	—		185,298		—		185,298
Mortgage-backed securities
Agency pass-through certificates	—		834,297		—		834,297
Commercial MBS	—		8,391		—		8,391
Total Available-for-sale securities	522		1,265,687		—		1,266,209
Interest rate contracts	—		1,139		—		1,139
Total Financial Assets	$	522	$	1,266,826	$	—	$	1,267,348

Financial Liabilities
Interest rate contracts	$	—	$	1,139	$	—	$	1,139
Commercial loan hedges	—		174		—		174
Long term borrowing hedges	—		1,693		—		1,693
Total Financial Liabilities	$	—	$	3,006	$	—	$	3,006

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the year ended September 30, 2017.



	September 30, 2016
	Level 1		Level 2		Level 3		Total
	(In thousands)
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
Long term borrowing hedges	—		31,347		—		31,347
Total Financial Liabilities	$	—	$	55,554	$	—	$	55,554

There were no transfers between, into and/or out of Level 1, 2 or 3 during the year ended September 30, 2016.

Aggregated balance of assets measured at estimated fair value on a nonrecurring basis and total losses resulting from those fair value adjustments

The following table presents the recorded balance of assets that were measured at estimated fair value on a nonrecurring basis for the periods presented, and the total gains (losses) resulting from those fair value adjustments for the periods presented. These estimated fair values are shown gross of estimated selling costs:



	September 30, 2017								Three Months Ended September 30, 2017			Twelve Months Ended September 30, 2017
	Level 1		Level 2		Level 3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	9,088	$	9,088	$	(250	)	$	(1,916	)
Real estate owned (2)	—		—		12,662		12,662		(376		)	(1,463		)
Balance at end of period	$	—	$	—	$	21,750	$	21,750	$	(626	)	$	(3,379	)

___________________


(1)	The gains (losses) represent remeasurements of collateral-dependent impaired loans.


(2)	The gains (losses) represent aggregate writedowns and charge-offs on real estate owned.



	September 30, 2016								Three Months Ended September 30, 2016			Twelve Months Ended September 30, 2016
	Level 1		Level 2		Level 3		Total		Total Gains (Losses)
	(In thousands)
Impaired loans (1)	$	—	$	—	$	17,476	$	17,476	$	(474	)	$	(4,236	)
Real estate owned (2)	—		—		25,190		25,190		(1,003		)	(3,947		)
Balance at end of period	$	—	$	—	$	42,666	$	42,666	$	(1,477	)	$	(8,183	)

___________________


(1)	The gains (losses) represent remeasurements of collateral-dependent impaired loans.


(2)	The gains (losses) represent aggregate writedowns and charge-offs on real estate owned.

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.



		September 30, 2017				September 30, 2016
	Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	313,070	$	313,070	$	450,368	$	450,368
Available-for-sale securities:
Equity securities	1	522		522		101,824		101,824
U.S. government and agency securities	2	211,077		211,077		259,351		259,351
Municipal bonds	2	26,624		26,624		27,670		27,670
Corporate debt securities	2	185,298		185,298		461,138		461,138
Mortgage-backed securities
Agency pass-through certificates	2	834,297		834,297		993,041		993,041
Commercial MBS	2	8,391		8,391		79,870		79,870
Total available-for-sale securities		1,266,209		1,266,209		1,922,894		1,922,894
Held-to-maturity securities:
Mortgage-backed securities
Agency pass-through certificates	2	1,646,856		1,635,913		1,417,599		1,441,556
Total held-to-maturity securities		1,646,856		1,635,913		1,417,599		1,441,556

Loans receivable	3	10,882,622		11,247,586		9,910,920		10,414,794
FDIC indemnification asset	3	8,968		8,564		12,769		12,095
FHLB and FRB stock	2	122,990		122,990		117,205		117,205
Other assets - interest rate contracts	2	1,139		1,139		20,895		20,895

Financial liabilities
Customer accounts	2	10,835,008		10,411,686		10,600,852		10,184,321
FHLB advances and other borrowings	2	2,225,000		2,266,791		2,080,000		2,184,671
Other liabilities - interest rate contracts	2	1,139		1,139		20,895		20,895
Other liabilities - commercial loan hedges	2	174		174		3,312		3,312
Other liabilities - long term borrowing hedges	2	1,693		1,693		31,347		31,347

The following table presents the fair value and balance sheet classification of derivatives outstanding.



	Asset Derivatives						Liability Derivatives
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
(In thousands)	Balance Sheet	Fair Value		Balance Sheet	Fair Value		Balance Sheet	Fair Value		Balance Sheet	Fair Value
Interest rate contracts	Other assets	$	1,139	Other assets	$	20,895	Other liabilities	$	1,139	Other liabilities	$	20,895
Commercial loan hedges	Other assets	—		Other assets	—		Other liabilities	174		Other liabilities	3,312
Long term borrowing hedges	Other assets	—		Other assets	—		Other liabilities	1,693		Other liabilities	31,347
		$	1,139		$	20,895		$	3,006		$	55,554