Allowance for Losses on Loans (Tables)

9 Months Ended

Jun. 30, 2012

Financing Receivable, Recorded Investment [Line Items]

Summary of Activity in Allowance for Loan Losses

The following table summarizes the activity in the allowance for loan losses for the quarter ended June 30, 2012 and fiscal year ended September 30, 2011:



Quarter Ended June 30, 2012	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	83,875	$	(14,134	)	$	2,240	$	9,363		$	81,344
Construction - speculative	15,943		(2,288		)	86		(888		)	12,853
Construction - custom	384		—			—		(40		)	344
Land - acquisition & development	19,929		(1,519		)	533		(1,549		)	17,394
Land - consumer lot loans	7,712		(670		)	—		295			7,337
Multi-family	4,837		—			279		(278		)	4,838
Commercial real estate	2,869		(206		)	148		337			3,148
Commercial & industrial	4,427		(69		)	70		2,535			6,963
HELOC	969		(147		)	6		144			972
Consumer	2,874		(955		)	391		448			2,758
	$	143,819	$	(19,988	)	$	3,753	$	10,367		$	137,951



Fiscal Year Ended September 30, 2011	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	47,160	$	(38,465	)	$	3,072	$	71,540		$	83,307
Construction - speculative	26,346		(13,197		)	2,143		(1,464		)	13,828
Construction - custom	770		(237		)	—		90			623
Land - acquisition & development	61,637		(39,797		)	2,271		8,608			32,719
Land - consumer lot loans	4,793		(4,196		)	—		4,923			5,520
Multi-family	5,050		(1,950		)	71		4,452			7,623
Commercial real estate	3,165		(1,593		)	328		2,431			4,331
Commercial & industrial	6,193		(4,733		)	1,925		1,714			5,099
HELOC	586		(939		)	185		1,307			1,139
Consumer	7,394		(4,602		)	1,429		(1,250		)	2,971
	$	163,094	$	(109,709	)	$	11,424	$	92,351		$	157,160

Summary of Loans Collectively and Individually Evaluated for Impairment and Related Allocation of Reserves

The following tables shows a summary of loans collectively and individually evaluated for impairment and the related allocation of general and specific reserves as of June 30, 2012 and September 30, 2011:



June 30, 2012	Loans Collectively Evaluated for Impairment						Loans Individually Evaluated for Impairment
	General Reserve Allocation		Gross Loans Subject to General Reserve (1)		Ratio		Specific Reserve Allocation		Gross Loans Subject to Specific Reserve (1)		Ratio
	(In thousands)						(In thousands)
Single-family residential	$	80,437	$	5,823,964	1.4	%	$	907	$	80,842	1.1	%
Construction - speculative	8,615		98,980		8.7		4,238		31,760		13.3
Construction - custom	344		210,488		0.2		—		—		—
Land - acquisition & development	5,777		40,803		14.2		11,617		94,589		12.3
Land - consumer lot loans	6,447		142,712		4.5		890		2,417		36.8
Multi-family	2,728		671,837		0.4		2,110		20,927		10.1
Commercial real estate	1,136		286,779		0.4		2,012		23,808		8.5
Commercial & industrial	6,950		147,394		4.7		13		1,183		1.1
HELOC	972		113,559		0.9		—		—		—
Consumer	2,758		68,202		4.0		—		—		—
	$	116,164	$	7,604,718	1.5		$	21,787	$	255,526	8.5

___________________


(1)	Excludes acquired and covered loans



September 30, 2011	Loans Collectively Evaluated for Impairment						Loans Individually Evaluated for Impairment
	General Reserve Allocation		Gross Loans Subject to General Reserve (1)		Ratio		Specific Reserve Allocation		Gross Loans Subject to Specific Reserve (1)		Ratio
	(In thousands)						(In thousands)
Single-family residential	$	77,441	$	6,186,322	1.3	%	$	5,866	$	32,556	18.0	%
Construction - speculative	6,969		89,986		7.7		6,859		50,473		13.6
Construction - custom	623		279,851		0.2		—		—		—
Land - acquisition & development	10,489		61,277		17.1		22,230		139,415		15.9
Land - consumer lot loans	4,385		160,906		2.7		1,135		2,240		50.7
Multi-family	3,443		679,823		0.5		4,180		20,850		20.0
Commercial real estate	2,730		268,906		1.0		1,601		34,536		4.6
Commercial & industrial	5,058		106,406		4.8		41		2,926		1.4
HELOC	1,139		115,092		1.0		—		—		—
Consumer	2,971		67,509		4.4		—		—		—
	$	115,248	$	8,016,078	1.4		$	41,912	$	282,996	14.8


(1)	Excludes covered loans

Summary of Loans Based on Credit Quality Indicators

The following tables provide information on covered loans based on credit quality indicators (defined in Note A) as of June 30, 2012 and September 30, 2011:

Credit Risk Profile by Internally Assigned Grade:



June 30, 2012	Internally Assigned Grade															Total Net Loans
	Pass			Special mention			Substandard			Doubtful			Loss
	(In thousands)
Purchased non credit-impaired loans:
Single-family residential	$	34,874		$	—		$	3,868		$	—		$	—		$	38,742
Construction - speculative	—			—			—			—			—			—
Construction - custom	—			—			—			—			—			—
Land - acquisition & development	4,623			2,669			6,031			—			—			13,323
Land - consumer lot loans	503			—			—			—			—			503
Multi-family	29,347			—			2,754			—			—			32,101
Commercial real estate	93,387			1,104			30,843			—			—			125,334
Commercial & industrial	6,953			917			6,707			—			—			14,577
HELOC	19,307			—			—			—			—			19,307
Consumer	973			—			—			—			—			973
	189,967			4,690			50,203			—			—			244,860
Total grade as a % of total net loans	77.6		%	1.9		%	20.5		%	—		%	—		%

Purchased credit-impaired loans:
Pool 1 - Construction and land A&D	9,807			5,865			39,582			—			—			55,254
Pool 2 - Single-family residential	379			—			3,959			—			—			4,338
Pool 3 - Multi-family	—			3,019			—			—			—			3,019
Pool 4 - HELOC & other consumer	1,171			—			3,469			—			—			4,640
Pool 5 - Commercial real estate	408			27,739			42,447			—			—			70,594
Pool 6 - Commercial & industrial	3,881			1,497			11,685			—			—			17,063
	$	15,646		$	38,120		$	101,142		$	—		$	—		154,908
													Total covered loans			399,768
													Discount			(93,321		)
													Allowance			(3,766		)
													Covered loans, net			$	302,681



September 30, 2011	Internally Assigned Grade															Total Net Loans
	Pass			Special mention			Substandard			Doubtful			Loss
	(In thousands)
Purchased non credit-impaired loans:
Single-family residential	$	45,619		$	—		$	595		$	—		$	—		$	46,214
Construction - speculative	1,315			—			—			—			—			1,315
Construction - custom	—			—			—			—			—			—
Land - acquisition & development	8,383			6,315			360			—			—			15,058
Land - consumer lot loans	543			—			111			—			—			654
Multi-family	32,448			—			2,458			—			—			34,906
Commercial real estate	118,124			1,361			28,979			—			—			148,464
Commercial & industrial	13,717			4,481			4,239			444			—			22,881
HELOC	21,730			—			—			—			—			21,730
Consumer	1,199			—			—			—			—			1,199
	243,078			12,157			36,742			444			—			292,421
Total grade as a % of total net loans	83.1		%	4.2		%	12.6		%	0.2		%	—		%

Purchased credit-impaired loans:
Pool 1 - Construction and land A&D	9,982			2,980			54,682			—			—			67,644
Pool 2 - Single-family residential	3,667			—			8,263			—			—			11,930
Pool 3 - Multi-family	—			—			3,324			—			—			3,324
Pool 4 - HELOC & other consumer	3,544			—			5,411			—			—			8,955
Pool 5 - Commercial real estate	418			30,579			48,069			—			—			79,066
Pool 6 - Commercial & industrial	2,859			2,725			25,662			772			—			32,018
	$	20,470		$	36,284		$	145,411		$	772		$	—		202,937
													Total covered loans			495,358
													Discount			(109,409		)
													Allowance			(3,766		)
													Covered loans, net			$	382,183

Sumary of Impaired Loans Based on Type

The following table provides information on impaired loans based on loan types as of June 30, 2012 and September 30, 2011:



								Average Recorded Investment
June 30, 2012	Recorded Investment		Unpaid Principal Balance		Related Allowance			Quarter Ended June 30, 2012		Nine Months Ended June 30, 2012
	(In thousands)
With no related allowance recorded:
Single-family residential	$	76,505	$	94,492	$	—		$	60,077	$	33,103
Construction - speculative	14,041		16,819		—			15,463		13,697
Construction - custom	—		157		—			—		—
Land - acquisition & development	16,213		35,449		—			16,422		18,025
Land - consumer lot loans	794		1,000		—			438		219
Multi-family	8,276		8,484		—			7,889		6,638
Commercial real estate	26,038		39,965		—			14,982		7,962
Commercial & industrial	1,568		13,265		—			885		443
HELOC	90		3,018		—			83		42
Consumer	—		60		—			—		—
	143,525		212,709		—			116,239		80,129
With an allowance recorded:
Single-family residential	345,103		345,103		25,796			334,249		333,820
Construction - speculative	14,602		14,602		4,238			14,600		14,519
Construction - custom	—		—		—			—		—
Land - acquisition & development	26,985		26,984		11,617			27,232		27,966
Land - consumer lot loans	1,622		1,622		890			811		406
Multi-family	11,312		11,312		2,110			11,332		11,367
Commercial real estate	7,269		7,269		2,012			6,912		6,656
Commercial & industrial	13		13		13			18		28
HELOC	—		—		—			—		—
Consumer	—		—		—			—		—
	406,906		406,905		46,676		(1)	395,154		394,762
Total:
Single-family residential	421,608		439,595		25,796			394,326		366,923
Construction - speculative	28,643		31,421		4,238			30,063		28,216
Construction - custom	—		157		—			—		—
Land - acquisition & development	43,198		62,433		11,617			43,654		45,991
Land - consumer lot loans	2,416		2,622		890			1,249		625
Multi-family	19,588		19,796		2,110			19,221		18,005
Commercial real estate	33,307		47,234		2,012			21,894		14,618
Commercial & industrial	1,581		$	13,278	13			903		471
HELOC	90		3,018		—			83		42
Consumer	—		60		—			—		—
	$	550,431	$	619,614	$	46,676	(1)	$	511,393	$	474,891

____________________

(1)Includes $21,787,000 of specific reserves and $24,889,000 included in the general reserves.



September 30, 2011	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment
	(In thousands)
With no related allowance recorded:
Single-family residential	$	5,597	$	9,575	$	—		$	5,935
Construction - speculative	8,286		11,026		—			7,374
Construction - custom	—		—		—			—
Land - acquisition & development	22,436		50,970		—			28,168
Land - consumer lot loans	—		—		—			—
Multi-family	3,233		4,508		—			4,058
Commercial real estate	3,462		3,963		—			2,141
Commercial & industrial	—		—		—			—
HELOC	—		—		—			—
Consumer	—		—		—			—
	43,014		80,042		—			47,676
With an allowance recorded:
Single-family residential	331,546		331,546		29,378			261,736
Construction - speculative	29,255		29,255		6,859			26,385
Construction - custom	—		—		—			—
Land - acquisition & development	49,036		49,912		22,230			41,006
Land - consumer lot loans	352		352		1,135			110
Multi-family	17,149		17,149		4,180			12,380
Commercial real estate	6,429		6,429		1,601			3,351
Commercial & industrial	41		41		41			31
HELOC	—		—		—			—
Consumer	—		—		—			—
	433,808		434,684		65,424		(1)	344,999
Total:
Single-family residential	337,143		341,121		29,378			267,671
Construction - speculative	37,541		40,281		6,859			33,759
Construction - custom	—		—		—			—
Land - acquisition & development	71,472		100,882		22,230			69,174
Land - consumer lot loans	352		352		1,135			110
Multi-family	20,382		21,657		4,180			16,438
Commercial real estate	9,891		10,392		1,601			5,492
Commercial & industrial	41		41		41			31
HELOC	—		—		—			—
Consumer	—		—		—			—
	$	476,822	$	514,726	$	65,424	(1)	$	392,675


(1)	Includes $41,912,000 of specific reserves and $23,512,000 included in the general reserves.

Excludes Acquired and Covered Loans [Member]

Financing Receivable, Recorded Investment [Line Items]

Summary of Loans Based on Credit Quality Indicators

The following tables provide information on loans based on credit quality indicators (defined in Note A) as of June 30, 2012 and September 30, 2011:

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



June 30, 2012	Internally Assigned Grade															Total
	Pass			Special mention			Substandard			Doubtful			Loss			Gross Loans
	(In thousands)
Non-acquired loans
Single-family residential	$	5,714,905		$	299		$	189,601		$	—		$	—		$	5,904,805
Construction - speculative	80,542			6,695			43,504			—			—			130,741
Construction - custom	210,488			—			—			—			—			210,488
Land - acquisition & development	42,907			21,935			70,550			—			—			135,392
Land - consumer lot loans	144,658			356			115			—			—			145,129
Multi-family	660,948			7,574			24,241			—			—			692,763
Commercial real estate	271,050			4,608			34,930			—			—			310,588
Commercial & industrial	146,075			352			2,150			—			—			148,577
HELOC	113,559			—			—			—			—			113,559
Consumer	67,301			528			373			—			—			68,202
	7,452,433			42,347			365,464			—			—			7,860,244

Credit impaired acquired loans
Pool 1 - Construction and land A&D	2,514			—			3,587			—			—			6,101
Pool 2 - Single-family residential	343			—			—			—			—			343
Pool 3 - Multi-family	—			—			1,074			—			—			1,074
Pool 4 - HELOC & other consumer	15,151			—			—			—			—			15,151
Pool 5 - Commercial real estate	52,223			5,493			32,257			1,033			—			91,006
Pool 6 - Commercial & industrial	2,548			805			1,343			404			—			5,100
Total credit impaired acquired loans	72,779			6,298			38,261			1,437			—			118,775
Total gross loans	$	7,525,212		$	48,645		$	403,725		$	1,437		$	—		$	7,979,019

Total grade as a % of total gross loans	94.3		%	0.6		%	5.1		%	—		%	—		%



September 30, 2011	Internally Assigned Grade															Total
	Pass			Special mention			Substandard			Doubtful			Loss			Gross Loans
	(In thousands)
Single-family residential	$	6,047,279		$	—		$	171,599		$	—		$	—		$	6,218,878
Construction - speculative	56,485			21,035			62,939			—			—			140,459
Construction - custom	279,851			—			—			—			—			279,851
Land - acquisition & development	44,888			44,840			110,964			—			—			200,692
Land - consumer lot loans	162,670			—			476			—			—			163,146
Multi-family	663,582			4,629			32,462			—			—			700,673
Commercial real estate	264,083			4,125			35,234			—			—			303,442
Commercial & industrial	104,171			1,128			1,407			2,245			381			109,332
HELOC	115,092			—			—			—			—			115,092
Consumer	66,512			528			469			—			—			67,509
	$	7,804,613		$	76,285		$	415,550		$	2,245		$	381		$	8,299,074
Total grade as a % of total gross loans	94.1		%	0.9		%	5.0		%	—		%	—		%

Credit Risk Profile Based on Payment Activity (excludes acquired and covered loans):



June 30, 2012	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross Loans		Amount		% of Total Gross Loans
	(In thousands)
Single-family residential	$	5,775,510	97.8	%	$	129,295	2.2	%
Construction - speculative	118,317		90.5		12,424		9.5
Construction - custom	209,949		99.7		539		0.3
Land - acquisition & development	122,878		90.8		12,514		9.2
Land - consumer lot loans	139,285		96.0		5,844		4.0
Multi-family	689,358		99.5		3,405		0.5
Commercial real estate	304,303		98.0		6,285		2.0
Commercial & industrial	148,577		100.0		—		—
HELOC	113,171		99.7		388		0.3
Consumer	67,863		99.5		339		0.5
	$	7,689,211	97.8		$	171,033	2.2



September 30, 2011	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross Loans		Amount		% of Total Gross Loans
	(In thousands)
Single-family residential	$	6,092,254	98.0	%	$	126,624	2.0	%
Construction - speculative	125,076		89.0		15,383		11.0
Construction - custom	279,216		99.8		635		0.2
Land - acquisition & development	163,353		81.4		37,339		18.6
Land - consumer lot loans	154,303		94.6		8,843		5.4
Multi-family	693,009		98.9		7,664		1.1
Commercial real estate	292,062		96.2		11,380		3.8
Commercial & industrial	107,653		98.5		1,679		1.5
HELOC	114,611		99.6		481		0.4
Consumer	67,072		99.4		437		0.6
	$	8,088,609	97.5	%	$	210,465	2.5	%