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Fair Value Measurements (Tables)
 9 Months Ended
Jun. 30, 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 June 30, 2013:
 
 
Fair Value at June 30, 2013
 
Level 1
 
Level 2
 
Level 3
 
Total
 
(In thousands)
Available-for-sale securities
 
 
 
 
 
 
 
Equity securities
$
—

 
$
514

 
$
—

 
$
514

Obligations of U.S. government
—

 
545,585

 
—

 
545,585

Obligations of states and political subdivisions
—

 
22,545

 
—

 
22,545

Obligations of foreign governments
—

 
—

 
—

 
—

Corporate debt securities
—

 
452,111

 
—

 
452,111

Mortgage-backed securities
 
 
 
 
—

 
 
Agency pass-through certificates
—

 
1,037,389

 
—

 
1,037,389

Other debt securities
—

 
—

 
—

 
—

Balance at end of period
$
—

 
$
2,058,144

 
$
—

 
$
2,058,144
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 nine months ended June 30, 2013, and the total losses resulting from those fair value adjustments for the quarter and nine months ended June 30, 2013. The following estimated fair values are shown gross of estimated selling costs:
 
 
Through June 30, 2013
 
Quarter
Ended
June 30, 2013
 
Nine Months
Ended June 30, 2013
 
Level 1
 
Level  2
 
Level  3
 
Total
 
Total Losses
 
(In thousands)
 
 
Impaired loans (1)
$
—

 
$
—

 
$
64,500

 
$
64,500

 
$
1,967

 
$
13,005

Covered REO (2)
—

 
—

 
18,312

 
18,312

 
231

 
603

Real estate held for sale (2)
—

 
—

 
77,080

 
77,080

 
5,626

 
19,650

Balance at end of period
$
—

 
$
—

 
$
159,892

 
$
159,892

 
$
7,824

 
$
33,258

 ___________________
(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, 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
 
$
646,857

 
$
646,857

 
$
751,430

 
$
751,430

Available-for-sale securities
 
2
 
 
 
 
 
 
 
 
Equity securities
 
 
 
514

 
514

 
—

 
—

Obligations of U.S. government
 
 
 
545,585

 
545,585

 
183,560

 
183,560

Obligations of states and political subdivisions
 
 
 
22,545

 
22,545

 
24,844

 
24,844

Obligations of foreign governments
 
 
 
—

 
—

 
—

 
—

Corporate debt securities
 
 
 
452,111

 
452,111

 
403,325

 
403,325

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
 
 
 
1,037,389

 
1,037,389

 
1,169,976

 
1,169,976

Other debt securities
 
 
 
—

 
—

 
—

 
—

Total available-for-sale securities
 
 
 
2,058,144

 
2,058,144

 
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
 
 
 
1,589,779

 
1,522,470

 
1,190,692

 
1,216,421

Other debt securities
 
 
 
—

 
—

 
—

 
—

Total held-to-maturity securities
 
 
 
1,589,779

 
1,522,470

 
1,191,487

 
1,217,223

Loans receivable
 
3
 
7,390,506

 
7,913,399

 
7,451,998

 
7,949,892

Covered loans
 
3
 
310,378

 
317,244

 
288,376

 
289,754

FDIC indemnification asset
 
3
 
73,665

 
73,182

 
87,571

 
85,846

FHLB stock
 
2
 
150,533

 
150,533

 
149,840

 
149,840

Financial liabilities
 
 
 
 
 
 
 
 
 
 
Customer accounts
 
2
 
9,063,497

 
8,615,872

 
8,576,618

 
8,406,432

FHLB advances and other borrowings
 
2
 
1,930,000

 
2,071,867

 
1,880,000

 
2,110,223

The following table presents the fair value and balance sheet classification of derivatives not designated as hedging instruments at June 30, 2013 and September 30, 2012:

 
 
Asset Derivatives
 
Liability Derivatives
 
 
June 30, 2013
 
September 30, 2012
 
June 30, 2013
 
September 30, 2012
 
 
Balance Sheet
 
 
 
Balance Sheet
 
 
 
Balance Sheet
 
 
 
Balance Sheet
 
 
 
 
Location
 
Fair Value
 
Location
 
Fair Value
 
Location
 
Fair Value
 
Location
 
Fair Value
 
 
(In thousands)
Interest rate contracts
 
Other assets
 
$
524

 
Other assets
 
N/A
 
Other liabilities
 
$
524

 
Other liabilities
 
N/A
Commitments to purchase MBS
 
AFS securities
 
2,875

 
AFS securities
 
N/A
 
N/A
 
N/A
 
N/A
 
N/A
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, 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
$
125,500

 
$
17

 
$
(2,231
)
 
$
123,286

 
1.12
%
1 to 5 years
61,002

 
3,494

 
(374
)
 
64,122

 
2.00

5 to 10 years
81,600

 
—

 
(487
)
 
81,113

 
0.73

Over 10 years
279,423

 
—

 
(1,845
)
 
277,578

 
0.92

Corporate bonds due
 
 
 
 
 
 
 
 
 
Within 1 year
19,500

 
3

 
—

 
19,503

 
0.49

1 to 5 years
317,103

 
2,045

 
(114
)
 
319,034

 
0.84

5 to 10 years
113,024

 
975

 
(425
)
 
113,574

 
1.59

Municipal bonds due
 
 
 
 
 
 
 
 
 
Over 10 years
20,427

 
2,118

 
—

 
22,545

 
6.45

Mortgage-backed securities
 
 
 
 
 
 
 
 
 
Agency pass-through certificates
1,032,452

 
7,129

 
(2,192
)
 
1,037,389

 
1.91

 
2,050,031

 
15,781

 
(7,668
)
 
2,058,144

 
1.53

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
1,589,779

 
3,058

 
(70,367
)
 
1,522,470

 
3.02

 
1,589,779

 
3,058

 
(70,367
)
 
1,522,470

 
3.02

 
$
3,639,810

 
$
18,839

 
$
(78,035
)
 
$
3,580,614

 
2.18
%
 
 
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 June 30, 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
$
(114
)
 
$
19,886

 
$
(426
)
 
$
9,575

 
$
(540
)
 
$
29,461

U.S. government and agency securities due
(4,936
)
 
507,790

 
—

 
—

 
(4,936
)
 
507,790

Agency pass-through certificates
(71,932
)
 
1,596,582

 
(627
)
 
110,163

 
(72,559
)
 
1,706,745

 
(76,982
)
 
$
2,124,258

 
$
(1,053
)
 
$
119,738

 
(78,035
)
 
$
2,243,996