Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2011

Fair Value of Assets Measured on Recurring Basis

The following table presents the balance of assets measured at fair value on a recurring basis at December 31, 2011:



	Fair Value at December 31, 2011
	Level 1		Level 2		Level 3		Total
	(In thousands)
Available-for-sale securities
Equity securities	$	—	$	—	$	—	$	—
Obligations of U.S. government	—		151,225		—		151,225
Obligations of states and political subdivisions	—		23,710		—		23,710
Obligations of foreign governments	—		—		—		—
Corporate debt securities	—		29,371		—		29,371
Mortgage-backed securities					—
Agency pass-through certificates	—		3,343,770		—		3,343,770
Other debt securities	—		—		—		—
Balance at end of period	$	—	$	3,548,076	$	—	$	3,548,076

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 aggregated balance of assets measured at estimated fair value on a nonrecurring basis through the quarter ended December 31, 2011, and the total losses resulting from those fair value adjustments for the quarter ended December 31, 2011. The following estimated fair values are shown gross of estimated selling costs:



	Through December 31, 2011								Quarter Ended December 31, 2011
	Level 1		Level 2		Level 3		Total		Total Losses
	(In thousands)
Impaired loans (1)	$	—	$	—	$	13,680	$	13,680	$	1,001
Covered REO (2)	—		—		15,582		15,582		701
Real estate held for sale (2)	—		—		58,986		58,986		20,964
Balance at end of period	$	—	$	—	$	88,248	$	88,248	$	22,666

___________________


(1)	The losses represents remeasurements of collateral dependent loans.


(2)	The losses represents aggregate writedowns and charge-offs on real estate held for sale.

Fair Value of Financial Instruments by Balance Sheet Grouping



	December 31, 2011				September 30, 2011
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In thousands)
Financial assets
Cash and cash equivalents	$	909,911	$	909,911	$	816,002	$	816,002
Available-for-sale securities
Equity securities	—		—		—		—
Obligations of U.S. government	151,225		151,225		190,527		190,527
Obligations of states and political subdivisions	23,710		23,710		23,568		23,568
Obligations of foreign governments	—		—		—		—
Corporate debt securities	29,371		29,371		29,959		29,959
Mortgage-backed securities
Agency pass-through certificates	3,343,770		3,343,770		3,011,090		3,011,090
Other debt securities	—		—		—		—
Total available-for-sale securities	3,548,076		3,548,076		3,255,144		3,255,144
Held-to-maturity securities
Equity securities	—		—		—		—
Obligations of U.S. government	—		—		—		—
Obligations of states and political subdivisions	795		834		1,950		2,023
Obligations of foreign governments	—		—		—		—
Corporate debt securities	—		—		—		—
Mortgage-backed securities
Agency pass-through certificates	41,431		44,651		45,086		48,593
Other debt securities	—		—		—		—
Total held-to-maturity securities	42,226		45,485		47,036		50,616
Loans receivable	7,810,075		8,400,463		7,935,877		8,479,307
Covered loans	347,469		341,853		382,183		375,027
FDIC indemnification asset	92,103		90,201		98,871		101,751
FHLB stock	153,333		153,333		151,755		151,755
Financial liabilities
Customer accounts	8,875,675		8,760,540		8,665,903		8,557,357
FHLB advances and other borrowings	2,760,868		3,116,631		2,762,066		3,038,127

Reconciliation of Amortized Cost to Fair Value of Available-for-Sale and Held-to-Maturity Securities

The following is a reconciliation of amortized cost to fair value of available-for-sale and held-to-maturity securities:



	December 31, 2011
	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	$	500	$	30	$	—		$	530	4.00	%
1 to 5 years	—		—		—			—		—
5 to 10 years	9,300		4,324		—			13,624		10.38
Over 10 years	136,460		611		—			137,071		2.16
Corporate bonds due
5 to 10 years	30,000		308		(937		)	29,371		4.00
Municipal bonds due
Over 10 years	20,456		3,254		—			23,710		6.45
Mortgage-backed securities
Agency pass-through certificates	3,218,244		125,914		(388		)	3,343,770		4.62
	3,414,960		134,441		(1,325		)	3,548,076		4.54
Held-to-maturity securities
Tax-exempt municipal bonds due
1 to 5 years	—		—		—			—		—
5 to 10 years	795		39		—			834		5.58
Over 10 years	—		—		—			—		—
U.S. government and agency securities due
1 to 5 years	—		—		—			—		—
Mortgage-backed securities
Agency pass-through certificates	41,431		3,220		—			44,651		5.31
	42,226		3,259		—			45,485		5.32
	$	3,457,186	$	137,700	$	(1,325	)	$	3,593,561	4.55	%



	September 30, 2011
	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	$	500	$	34		$	—		$	534	4.00	%
1 to 5 years	—		—			—			—		—
5 to 10 years	9,300		4,547			—			13,847		10.38
Over 10 years	175,515		631			—			176,146		2.57
Corporate bonds due
5 to 10 years	30,000		284			(325		)	29,959		4.00
Municipal bonds due
Over 10 years	20,461		3,107			—			23,568		6.45
Mortgage-backed securities
Agency pass-through certificates	2,883,734		127,356			—			3,011,090		4.72
	3,119,510		135,959			(325		)	3,255,144		4.62
Held-to-maturity securities
Tax-exempt municipal bonds due
1 to 5 years	405		5			—			410		6.52
5 to 10 years	1,545		68			—			1,613		5.60
Over 10 years	—		—			—			—		—
U.S. government and agency securities due
1 to 5 years	—		—			—			—		—
Mortgage-backed securities
Agency pass-through certificates	45,086		3,507			—			48,593		5.31
	47,036		3,580			—			50,616		5.33
	$	3,166,546	$	139,539		$	(325	)	$	3,305,760	4.63	%

Schedule of Unrealized Losses and Fair Value of Securities



	Less than 12 months					12 months or more					Total
	Unrealized Gross Losses			Fair Value		Unrealized Gross Losses			Fair Value		Unrealized Gross Losses			Fair Value

Corporate bonds due	$	—		$	—	$	(937	)	$	9,063	$	(937	)	$	9,063
Agency pass-through certificates	(388		)	66,664		—			—		(388		)	66,664
	(388		)	$	66,664	$	(937	)	$	9,063	(1,325		)	$	75,727

- Definition

Tabular disclosure of assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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