Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2012

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 June 30, 2012:



	Fair Value at June 30, 2012
	Level 1		Level 2		Level 3		Total
	(In thousands)
Available-for-sale securities
Equity securities	$	—	$	—	$	—	$	—
Obligations of U.S. government	—		114,141		—		114,141
Obligations of states and political subdivisions	—		24,001		—		24,001
Obligations of foreign governments	—		—		—		—
Corporate debt securities	—		303,214		—		303,214
Mortgage-backed securities					—
Agency pass-through certificates	—		3,184,759		—		3,184,759
Other debt securities	—		—		—		—
Balance at end of period	$	—	$	3,626,115	$	—	$	3,626,115

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 June 30, 2012, and the total losses resulting from those fair value adjustments for the quarter and nine months ended June 30, 2012. The following estimated fair values are shown gross of estimated selling costs:



	Through June 30, 2012								Quarter Ended June 30, 2012		Nine Months Ended June 30, 2012
	Level 1		Level 2		Level 3		Total		Total Losses
	(In thousands)
Impaired loans (1)	$	—	$	—	$	133,929	$	133,929	$	13,459	$	36,291
Covered REO (2)	—		—		32,817		32,817		923		2,124
Real estate held for sale (2)	—		—		157,547		157,547		21,756		61,100
Balance at end of period	$	—	$	—	$	324,293	$	324,293	$	36,138	$	99,515

___________________


(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

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, 2012				September 30, 2011
	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
		(In thousands)
Financial assets
Cash and cash equivalents	1	$	963,766	$	963,766	$	816,002	$	816,002
Available-for-sale securities	2
Equity securities		—		—		—		—
Obligations of U.S. government		114,141		114,141		190,527		190,527
Obligations of states and political subdivisions		24,001		24,001		23,568		23,568
Obligations of foreign governments		—		—		—		—
Corporate debt securities		303,214		303,214		29,959		29,959
Mortgage-backed securities
Agency pass-through certificates		3,184,759		3,184,759		3,011,090		3,011,090
Other debt securities		—		—		—		—
Total available-for-sale securities		3,626,115		3,626,115		3,255,144		3,255,144
Held-to-maturity securities	2
Equity securities		—		—		—		—
Obligations of U.S. government		—		—		—		—
Obligations of states and political subdivisions		795		812		1,950		2,023
Obligations of foreign governments		—		—		—		—
Corporate debt securities		—		—		—		—
Mortgage-backed securities
Agency pass-through certificates		34,433		37,215		45,086		48,593
Other debt securities		—		—		—		—
Total held-to-maturity securities		35,228		38,027		47,036		50,616
Loans receivable	3	7,616,205		8,262,700		7,935,877		8,479,307
Covered loans	3	302,681		304,420		382,183		375,027
FDIC indemnification asset	3	97,380		95,138		98,871		101,751
FHLB stock	2	151,674		151,674		151,755		151,755
Financial liabilities
Customer accounts	2	8,683,181		8,500,515		8,665,903		8,557,357
FHLB advances and other borrowings	2	2,757,146		3,097,509		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:



	June 30, 2012
	Amortized Cost		Gross Unrealized					Fair Value		Yield
	Amortized Cost		Gains		Losses			Fair Value		Yield
	(In thousands)
Available-for-sale securities
U.S. government and agency securities due
Within 1 year	$	500	$	36	$	—		$	536	4.00	%
1 to 5 years	—		—		—			—		—
5 to 10 years	109,300		4,330		(25		)	113,605		1.34
Over 10 years	—		—		—			—		—
Corporate bonds due
1 to 5 years	273,658		350		(58		)	273,950		0.87
5 to 10 years	30,000		464		(1,200		)	29,264		4.00
Municipal bonds due
Over 10 years	20,446		3,555		—			24,001		6.45
Mortgage-backed securities
Agency pass-through certificates	3,093,024		94,775		(3,040		)	3,184,759		4.48
	3,526,928		103,510		(4,323		)	3,626,115		4.11
Held-to-maturity securities
Tax-exempt municipal bonds due
Within 1 year	795		17		—			812		5.72
1 to 5 years	—		—		—			—		—
5 to 10 years	—		—		—			—		—
Over 10 years	—		—		—			—		—
U.S. government and agency securities due
1 to 5 years	—		—		—			—		—
Mortgage-backed securities
Agency pass-through certificates	34,433		2,782		—			37,215		5.31
	35,228		2,799		—			38,027		5.32
	$	3,562,156	$	106,309	$	(4,323	)	$	3,664,142	4.12	%



	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

The following table shows the unrealized gross losses and fair value of securities at June 30, 2012, by length of time that individual securities in each category have been in a continuous loss position. Management believes that the declines in fair value of these investments are not an other than temporary impairment.



	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	$	(1,258	)	$	32,400	$	—		$	—	$	(1,258	)	$	32,400
U.S. government and agency securities due	(25		)	99,975		—			—		(25		)	99,975
Agency pass-through certificates	(2,787		)	401,777		(253		)	33,822		(3,040		)	435,599
	(4,070		)	$	534,152	$	(253	)	$	33,822	(4,323		)	$	567,974

- 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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