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Fair Value Measurements (Tables)

6 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value of Assets Measured on Recurring Basis

The following tables present the balance of assets measured at fair value on a recurring basis at March 31, 2015 and September 30, 2014:

	Fair Value at March 31, 2015
	Level 1				Level 2				Level 3				Total
	(In thousands)
Financial Assets
Available-for-sale securities
Equity securities	$	102,277			$	—			$	—			$	102,277
Obligations of U.S. government	—				534,445				—				534,445
Obligations of states and political subdivisions	—				24,013				—				24,013
Corporate debt securities	—				528,564				—				528,564
Agency pass-through certificates	—				1,456,945				—				1,456,945
Other Commercial MBS	—				110,662				—				110,662
Total available-for-sale securities	102,277				2,654,629				—				2,756,906
Bank owned life insurance	—				100,961				—				100,961
Total financial assets	$	102,277			$	2,755,590			$	—			$	2,857,867
Financial Liabilities
FDIC liability	—				29,825				—				29,825
Long term borrowing hedge	—				(9,503		)		—				(9,503		)
Total financial liabilities	$	—			$	20,322			$	—			$	20,322

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the quarter ended March 31, 2015.

	Fair Value at September 30, 2014
	Level 1				Level 2				Level 3				Total
	(In thousands)
Financial Assets
Available-for-sale securities
Equity securities	$	101,387			$	—			$	—			$	101,387
Obligations of U.S. government	—				731,943				—				731,943
Obligations of states and political subdivisions	—				23,681				—				23,681
Obligations of foreign governments	—				—				—				—
Corporate debt securities	—				509,007				—				509,007
Mortgage-backed securities
Agency pass-through certificates	—				1,584,508				—				1,584,508
Other Commercial MBS	—				98,916				—				98,916
Total financial assets	$	101,387			$	2,948,055			$	—			$	3,049,442
Financial Liabilities
FDIC liability	—				28,823				—				28,823
Long term borrowing hedge	—				(268		)		—				(268		)
Total financial liabilities	$	—			$	28,555			$	—			$	28,555

There were no transfers between, into and/or out of Levels 1, 2 or 3 during the fiscal year ended September 30, 2014.

Aggregated Balance of Assets Measured at Estimated Fair Value on a Nonrecurring Basis and Total Losses Resulting from Those Fair Value Adjustments

The following tables present the aggregated balance of assets that were measured at estimated fair value on a nonrecurring basis at March 31, 2015 and March 31, 2014, and the total losses (gains) resulting from those fair value adjustments for the quarters and six months ended March 31, 2015 and March 31, 2014. These estimated fair values are shown gross of estimated selling costs.

	March 31, 2015																Quarter Ended March 31, 2015				Six Months Ended March 31, 2015
	Level 1				Level  2				Level  3				Total				Total Losses (Gains)
	(In thousands)
Impaired loans (1)	$	—			$	—			$	3,478			$	3,478			$	515			$	580
Covered REO (2)	—				—				1,558				1,558				112				188
Real estate held for sale (2)	—				—				46,697				46,697				(2,645		)		(10,957		)
Balance at end of period	$	—			$	—			$	51,733			$	51,733			$	(2,018	)		$	(10,189	)

(1) The losses represent remeasurements of collateral-dependent loans.

(2) The gains represents net valuation adjustments on real estate held for sale.

	March 31, 2014																Quarter Ended March 31, 2014				Six Months Ended March 31, 2014
	Level 1				Level  2				Level  3				Total				Total Losses (Gains)
	(In thousands)
Impaired loans (1)	$	—			$	—			$	7,066			$	7,066			$	269			$	(536	)
Covered REO (2)	—				—				2,760				2,760				64				129
Real estate held for sale (2)	—				—				26,725				26,725				2,657				6,382
Balance at end of period	$	—			$	—			$	36,551			$	36,551			$	2,990			$	5,975

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

(2) The losses represent aggregate net 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, 2015								September 30, 2014
		Level in Fair Value Hierarchy		Carrying Amount				Estimated Fair Value				Carrying Amount				Estimated Fair Value
				(In thousands)
Financial assets
Cash and cash equivalents		1		$	675,064			$	675,064			$	781,843			$	781,843
Available-for-sale securities
Equity securities		1		102,277				102,277				101,387				101,387
Obligations of U.S. government		2		534,445				534,445				731,943				731,943
Obligations of states and political subdivisions		2		24,013				24,013				23,681				23,681
Corporate debt securities		2		528,564				528,564				509,007				509,007
Mortgage-backed securities
Agency pass-through certificates		2		1,456,945				1,456,945				1,584,508				1,584,508
Other Commercial MBS		2		110,662				110,662				98,916				98,916
Total available-for-sale securities				2,756,906				2,756,906				3,049,442				3,049,442
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates		2		1,479,781				1,480,477				1,548,265				1,499,218
Total held-to-maturity securities				1,479,781				1,480,477				1,548,265				1,499,218
Loans receivable		3		8,420,988				9,038,242				8,148,322				8,667,771
Covered loans		3		138,005				144,672				176,476				176,761
FDIC indemnification asset		3		23,115				22,543				36,860				35,976
FHLB and FRB stock		2		150,918				150,918				158,839				158,839
Bank owned life insurance		1		100,961				100,961				—				—
Financial liabilities
Customer accounts		2		10,692,625				10,057,164				10,716,928				9,946,586
FHLB advances		2		1,830,000				1,962,356				1,930,000				2,054,437
FDIC liability		2		29,825				29,825				28,823				28,823
Other liabilities - long term borrowing hedge		2		—				(9,503		)		—				(268		)

The following table presents the fair value and balance sheet classification of derivatives at March 31, 2015 and September 30, 2014:

Asset Derivatives

Liability Derivatives

March 31, 2015

September 30, 2014

March 31, 2015

September 30, 2014

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

$

8,562

Other assets

$

2,879

Other liabilities

$

8,562

Other liabilities

$

2,879

Long term borrowing hedge

Other assets

—

Other assets

—

Other liabilities

9,503

Other liabilities

268

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

The following tables provide a reconciliation of amortized cost to fair value of available-for-sale and held-to-maturity securities as of March 31, 2015, and September 30, 2014:

	March 31, 2015
	Amortized Cost				Gross Unrealized								Fair Value				Yield
					Gains				Losses
	(In thousands)
Available-for-sale securities
U.S. government and agency securities due
1 to 5 years	$	142,283			$	2,300			$	(119	)		$	144,464			1.41	%
5 to 10 years	107,717				403				—				108,120				1.19
Over 10 years	281,951				436				(526		)		281,861				1.14
Equity Securities
Within 1 year	500				17				—				517				1.80
1 to 5 years	100,000				1,760				—				101,760				1.90
5 to 10 years	—				—				—				—				—
Corporate bonds due
Within 1 year	15,000				—				(15		)		14,985				1.00
1 to 5 years	327,715				1,860				—				329,575				0.74
5 to 10 years	133,271				1,432				(949		)		133,754				1.48
Over 10 years	50,000				250				—				50,250				3.00
Municipal bonds due
Over 10 years	20,392				3,621				—				24,013				6.45
Mortgage-backed securities
Agency pass-through certificates	1,420,784				38,053				(1,892		)		1,456,945				2.57
Other Commercial MBS	110,662				—				—				110,662				1.45
	2,710,275				50,132				(3,501		)		2,756,906				1.99	%
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,479,781				11,732				(11,036		)		1,480,477				3.13
	$	4,190,056			$	61,864			$	(14,537	)		$	4,237,383			2.39	%

	September 30, 2014
	Amortized Cost				Gross Unrealized								Fair Value				Yield
					Gains			Losses
	(In thousands)
Available-for-sale securities
U.S. government and agency securities due
1 to 5 years	$	171,154			$	2,585			$	(748	)		$	172,991			1.26	%
5 to 10 years	203,317				300				(102		)		203,515				1.45
Over 10 years	354,828				1,028				(419		)		355,437				1.25
Equity Securities
1 to 5 years	100,500				887				—				101,387				1.90
Corporate bonds due
Within 1 year	15,000				75				—				15,075				1.00
1 to 5 years	302,540				2,372				—				304,912				0.71
5 to 10 years	138,201				1,789				(970		)		139,020				1.43
Over 10 years	50,000				—				—				50,000				3.00
Municipal bonds due
Over 10 years	20,402				3,279				—				23,681				6.45
Mortgage-backed securities
Agency pass-through certificates	1,561,639				24,893				(2,024		)		1,584,508				2.57
Other Commercial MBS	98,851				65				—				98,916				1.49
	3,016,432				37,273				(4,263		)		3,049,442				1.99	%
Held-to-maturity securities
Mortgage-backed securities
Agency pass-through certificates	1,548,265				4,855				(53,902		)		1,499,218				3.13
	$	4,564,697			$	42,128			$	(58,165	)		$	4,548,660			2.38	%

Schedule of Unrealized Losses and Fair Value of Securities

The following tables show the unrealized gross losses and fair value of securities as of March 31, 2015 and September 30, 2014, by length of time that individual securities in each category have been in a continuous loss position. The decline in fair value is attributable to changes in interest rates. Because the Company does not intend to sell these securities and does not consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider these investments to be other than temporarily impaired.

March 31, 2015	Less than 12 months								12 months or more								Total
	Unrealized Gross Losses				Fair Value				Unrealized Gross Losses				Fair Value				Unrealized Gross Losses				Fair Value
	(In thousands)
Corporate bonds due	$	(15	)		$	14,985			$	(949	)		$	34,051			$	(964	)		$	49,036
U.S. government and agency securities due	(533		)		182,146				(112		)		58,083				(645		)		240,229
Agency pass-through certificates	(252		)		14,489				(12,676		)		1,431,457				(12,928		)		1,445,946
	$	(800	)		$	211,620			$	(13,737	)		$	1,523,591			$	(14,537	)		$	1,735,211

September 30, 2014	Less than 12 months								12 months or more								Total
	Unrealized Gross Losses				Fair Value				Unrealized Gross Losses				Fair Value				Unrealized Gross Losses				Fair Value
	(In thousands)
Corporate bonds due	$	(125	)		$	24,875			$	(845	)		$	24,155			$	(970	)		$	49,030
U.S. government and agency securities due	(472		)		316,578				(797		)		109,354				(1,269		)		425,932
Agency pass-through certificates	(215		)		19,212				(55,711		)		1,509,209				(55,926		)		1,528,421
	$	(812	)		$	360,665			$	(57,353	)		$	1,642,718			$	(58,165	)		$	2,003,383

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Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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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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For all investments in an unrealized loss position, including those for which other-than-temporary impairments have not been recognized in earnings (including investments for which a portion of an other-than-temporary impairment has been recognized in other comprehensive income), a tabular disclosure of the aggregate related fair value of investments with unrealized losses and the aggregate amount of unrealized losses (that is, the amount by which amortized cost basis exceeds fair value).

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