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Fair Value Measurements (Tables)
 6 Months Ended
Mar. 31, 2013
Fair Value Measurements [Abstract]  
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 March 31, 2013:
 
 
Fair Value at March 31, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Available-for-sale securities
 
 
 
 
 
 
 
Equity securities
$
—

 
$
531

 
$
—

 
$
531

Obligations of U.S. government
—

 
489,523

 
—

 
489,523

Obligations of states and political subdivisions
—

 
24,803

 
—

 
24,803

Obligations of foreign governments
—

 
—

 
—

 
—

Corporate debt securities
—

 
404,112

 
—

 
404,112

Mortgage-backed securities
 
 
 
 
—

 
 
Agency pass-through certificates
—

 
1,103,699

 
—

 
1,103,699

Other debt securities
—

 
—

 
—

 
—

Balance at end of period
$
—

 
$
2,022,668

 
$
—

 
$
2,022,668
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 six months ended March 31, 2013, and the total losses resulting from those fair value adjustments for the quarter and six months ended March 31, 2013. The following estimated fair values are shown gross of estimated selling costs:
 
 
Through March 31, 2013
 
Quarter
Ended
March 31, 2013
 
Six Months
Ended March 31, 2013
 
Level 1
 
Level  2
 
Level  3
 
Total
 
Total Losses
 
(In thousands)
 
 
Impaired loans (1)
$
—

 
$
—

 
$
45,966

 
$
45,966

 
$
1,225

 
$
11,038

Covered REO (2)
—

 
—

 
13,988

 
13,988

 
281

 
372

Real estate held for sale (2)
—

 
—

 
54,069

 
54,069

 
6,488

 
14,024

Balance at end of period
$
—

 
$
—

 
$
114,023

 
$
114,023

 
$
7,994

 
$
25,434

 ___________________
(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.
 
 
 
 
 
March 31, 2013
 
September 30, 2012
 
 
Level in Fair Value Hierarchy
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
 
 
 
 
(In thousands)
Financial assets
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
1
 
$
782,059

 
$
782,059

 
$
751,430

 
$
751,430

Available-for-sale securities
 
2
 
 
 
 
 
 
 
 
Equity securities
 
 
 
531

 
531

 
—

 
—

Obligations of U.S. government
 
 
 
489,523

 
489,523

 
183,560

 
183,560

Obligations of states and political subdivisions
 
 
 
24,803

 
24,803

 
24,844

 
24,844

Obligations of foreign governments
 
 
 
—

 
—

 
—

 
—

Corporate debt securities
 
 
 
404,112

 
404,112

 
403,325

 
403,325

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
 
 
 
1,103,699

 
1,103,699

 
1,169,976

 
1,169,976

Other debt securities
 
 
 
—

 
—

 
—

 
—

Total available-for-sale securities
 
 
 
2,022,668

 
2,022,668

 
1,781,705

 
1,781,705

Held-to-maturity securities
 
2
 
 
 
 
 
 
 
 
Equity securities
 
 
 
—

 
—

 
—

 
—

Obligations of U.S. government
 
 
 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
 
 
 
—

 
—

 
795

 
802

Obligations of foreign governments
 
 
 
—

 
—

 
—

 
—

Corporate debt securities
 
 
 
—

 
—

 
—

 
—

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
 
 
 
1,469,983

 
1,469,229

 
1,190,692

 
1,216,421

Other debt securities
 
 
 
—

 
—

 
—

 
—

Total held-to-maturity securities
 
 
 
1,469,983

 
1,469,229

 
1,191,487

 
1,217,223

Loans receivable
 
3
 
7,444,216

 
8,059,053

 
7,451,998

 
7,949,892

Covered loans
 
3
 
355,515

 
365,138

 
288,376

 
289,754

FDIC indemnification asset
 
3
 
80,391

 
78,108

 
87,571

 
85,846

FHLB stock
 
2
 
152,038

 
152,038

 
149,840

 
149,840

Financial liabilities
 
 
 
 
 
 
 
 
 
 
Customer accounts
 
2
 
9,152,225

 
8,861,670

 
8,576,618

 
8,406,432

FHLB advances and other borrowings
 
2
 
1,930,000

 
2,145,399

 
1,880,000

 
2,110,223
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:
 
 
March 31, 2013
 
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
$
16,952

 
$
31

 
$
(29
)
 
$
16,954

 
0.45
%
1 to 5 years
58,000

 
2,576

 
—

 
60,576

 
1.55

5 to 10 years
83,300

 
1,664

 
—

 
84,964

 
1.36

Over 10 years
327,404

 
156

 
—

 
327,560

 
0.90

Corporate bonds due
 
 
 
 
 
 
 
 
 
Within 1 year
19,500

 
11

 
—

 
19,511

 
0.49

1 to 5 years
317,044

 
4,078

 
—

 
321,122

 
0.84

5 to 10 years
62,962

 
998

 
(481
)
 
63,479

 
2.02

Municipal bonds due
 
 
 
 
 
 
 
 
 
Over 10 years
20,430

 
4,373

 
—

 
24,803

 
6.45

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
1,098,266

 
6,421

 
(988
)
 
1,103,699

 
1.99

 
2,003,858

 
20,308

 
(1,498
)
 
2,022,668

 
1.61

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
Tax-exempt municipal bonds due
 
 
 
 
 
 
 
 
 
Within 1 year
—

 
—

 
—

 
—

 
—

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
1,469,983

 
3,302

 
(4,056
)
 
1,469,229

 
3.04

 
1,469,983

 
3,302

 
(4,056
)
 
1,469,229

 
3.04

 
$
3,473,841

 
$
23,610

 
$
(5,554
)
 
$
3,491,897

 
2.22
%
 
 
September 30, 2012
 
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
$
19,999

 
$
42

 
$
(6
)
 
$
20,035

 
0.57
%
1 to 5 years
—

 
—

 
—

 
—

 
—

5 to 10 years
59,300

 
4,225

 
—

 
63,525

 
2.21

Over 10 years
100,000

 
—

 
—

 
100,000

 
1.05

Corporate bonds due
 
 
 
 
 
 
 
 
 
1 to 5 years
336,340

 
2,810

 
(61
)
 
339,089

 
0.91

5 to 10 years
62,919

 
1,324

 
(7
)
 
64,236

 
2.73

Municipal bonds due
 
 
 
 
 
 
 
 
 
Over 10 years
20,442

 
4,402

 
—

 
24,844

 
6.45

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
1,161,668

 
9,358

 
(1,050
)
 
1,169,976

 
2.28

 
1,760,668

 
22,161

 
(1,124
)
 
1,781,705

 
1.99

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
Tax-exempt municipal bonds due
 
 
 
 
 
 
 
 
 
Within 1 year
795

 
7

 
—

 
802

 
5.80

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
1,190,692

 
25,729

 
—

 
1,216,421

 
3.10

 
1,191,487

 
25,736

 
—

 
1,217,223

 
3.10

 
$
2,952,155

 
$
47,897

 
$
(1,124
)
 
$
2,998,928

 
2.44
%
Schedule of Unrealized Losses and Fair Value of Securities
The following table shows the unrealized gross losses and fair value of securities at March 31, 2013, 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
$
—

 
$
—

 
$
(481
)
 
$
9,519

 
$
(481
)
 
$
9,519

U.S. government and agency securities due
(29
)
 
16,423

 
—

 
—

 
(29
)
 
16,423

Agency pass-through certificates
(4,239
)
 
943,909

 
(805
)
 
175,871

 
(5,044
)
 
1,119,780

 
(4,268
)
 
$
960,332

 
$
(1,286
)
 
$
185,390

 
(5,554
)
 
$
1,145,722