Loans Receivable (excluding Covered Loans)



	June 30, 2015				September 30, 2014
	(In thousands)
Non-acquired loans
Single-family residential	$	5,549,746	60.1	%	$	5,560,203	64.1	%
Construction - speculative	181,668		2.0		140,060		1.6
Construction - custom	375,425		4.1		385,824		4.5
Land - acquisition & development	87,382		0.9		77,832		0.9
Land - consumer lot loans	102,495		1.1		108,623		1.3
Multi-family	1,089,682		11.8		917,286		10.6
Commercial real estate	808,539		8.7		591,336		6.9
Commercial & industrial	451,478		4.9		379,226		4.4
HELOC	122,870		1.3		116,042		1.4
Consumer	205,932		2.2		132,590		1.5
Total non-acquired loans	8,975,217		97.1		8,409,022		97.2
Non-impaired acquired loans
Single-family residential	12,895		0.1		11,716		0.1
Construction - speculative	—		—		—		—
Construction - custom	—		—		—		—
Land - acquisition & development	1,028		—		905		—
Land - consumer lot loans	2,472		—		2,507		—
Multi-family	3,692		—		2,999		—
Commercial real estate	102,089		1.1		97,898		1.1
Commercial & industrial	57,614		0.6		51,386		0.6
HELOC	6,414		0.1		8,274		0.1
Consumer	2,916		—		5,670		0.1
Total non-impaired acquired loans	189,120		1.9		181,355		2.0
Credit-impaired acquired loans
Single-family residential	6,288		0.1		325		—
Construction - speculative	—		—		—		—
Land - acquisition & development	1,842		—		1,622		—
Land - consumer lot loans	496		—		—		—
Multi-family	—		—		—		—
Commercial real estate	71,196		0.8		63,723		0.7
Commercial & industrial	3,881		—		3,476		—
HELOC	8,553		0.1		10,139		0.1
Consumer	108		—		55		—
Total credit-impaired acquired loans	92,364		1.0		79,340		0.8
Total loans
Single-family residential	5,568,929		60.3		5,572,244		64.2
Construction - speculative	181,668		2.0		140,060		1.6
Construction - custom	375,425		4.1		385,824		4.5
Land - acquisition & development	90,252		0.9		80,359		0.9
Land - consumer lot loans	105,463		1.1		111,130		1.3
Multi-family	1,093,374		11.8		920,285		10.6
Commercial real estate	981,824		10.6		752,957		8.7



Commercial & industrial	512,973		5.5		434,088		5.0
HELOC	137,837		1.5		134,455		1.6
Consumer	208,956		2.2		138,315		1.6
Total Loans	9,256,701		100	%	8,669,717		100	%
Less:
Allowance for probable losses	105,611				112,347
Loans in process	438,941				346,172
Discount on acquired loans	28,399				25,391
Deferred net origination fees	38,141				37,485
	611,092				521,395
	$	8,645,609			$	8,148,322

Changes in the carrying amount and accretable yield for acquired non-impaired and credit-impaired loans (excluding covered loans) for the nine months ended June 30, 2015 and June 30, 2014 were as follows:



June 30, 2015	Acquired Impaired						Acquired Non-impaired
	Accretable Yield			Net Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(In thousands)
Balance as of beginning of period	$	32,591		$	57,771		$	4,254		$	177,440
Transfer from covered loans (2)	23,167			15,866			1,482			33,649
Additions	—			—			346			—
Accretion	(11,501		)	11,501			(2,427		)	2,427
Transfers to REO	—			(458		)	—			—
Payments received, net	—			(18,140		)	—			(27,556		)
Balance as of end of period	$	44,257		$	66,540		$	3,655		$	185,960
(1) reclassification due to improvements in expected cash flows of the underlying loans
(2) reclassification from covered to non-covered due to expiration of loss share agreement



June 30, 2014	Acquired Impaired						Acquired Non-impaired
	Accretable Yield			Net Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
	(In thousands)
Balance as of beginning of period	$	37,236		$	69,718		$	4,977		$	245,373
Reclassification from nonaccretable balance, net (1)	7,300			—			—			—
Accretion	(8,884		)	8,884			(606		)	606
Transfers to REO	—			(1,188		)	—			(4,710		)
Payments received, net	—			(17,616		)	—			(48,988		)
Balance as of end of period	$	35,652		$	59,798		$	4,371		$	192,281
(1) reclassification due to improvements in expected cash flows of the underlying loans.

The following table sets forth information regarding non-accrual loans (excluding covered loans) held by the Company as of the dates indicated:



	June 30, 2015				September 30, 2014
	(In thousands)
Non-accrual loans:
Single-family residential	$	56,638	86.7	%	$	74,067	84.8	%
Construction - speculative	762		1.2		1,477		1.7
Construction - custom	355		0.5		—		—
Land - acquisition & development	—		—		811		0.9
Land - consumer lot loans	1,308		2.0		2,637		3.0
Multi-family	786		1.2		1,742		2.0
Commercial real estate	2,852		4.4		5,106		5.8
Commercial & industrial	1,205		1.8		7		—
HELOC	889		1.4		795		0.9
Consumer	513		0.8		789		0.9
Total non-accrual loans	$	65,308	100	%	$	87,431	100	%

The Company recognized interest income on nonaccrual loans of approximately $5,272,000 in the nine months ended June 30, 2015. Had these loans performed according to their original contract terms, the Company would have recognized interest income of approximately $2,421,000 for the nine months ended June 30, 2015. The recognized interest income may include more than nine months of interest for some of the loans that were brought current.

In addition to the nonaccrual loans reflected in the above table, the Company had $94,346,000 of loans that were less than 90 days delinquent at June 30, 2015 but which it had classified as substandard for one or more reasons.

The following tables provide an analysis of the age of loans (net of LIP and excluding covered loans) in past due status as of June 30, 2015 and September 30, 2014, respectively.



June 30, 2015	Amount of Loans		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loan	Net of LIP & Chg.-Offs		Current		30		60		90		Total		% based on $
	(In thousands)
Non-acquired loans
Single-family residential	$	5,546,941	$	5,473,728	$	14,525	$	8,585	$	50,103	$	73,213	1.32	%
Construction - speculative	117,711		117,711		—		—		—		—		—
Construction - custom	204,914		204,140		310		109		355		774		0.38
Land - acquisition & development	72,856		72,429		427		—		—		427		0.59
Land - consumer lot loans	102,436		99,717		595		85		2,039		2,719		2.65
Multi-family	1,013,745		1,012,704		—		421		620		1,041		0.10
Commercial real estate	697,960		696,678		421		57		804		1,282		0.18
Commercial & industrial	451,473		451,404		69		—		—		69		0.02
HELOC	122,874		121,836		401		62		575		1,038		0.84
Consumer	205,950		205,259		519		172		—		691		0.34
Total non-acquired loans	8,536,860		8,455,606		17,267		9,491		54,496		81,254		0.95

Non-impaired acquired loans
Single-family residential	12,895		12,872		—		—		23		23		0.18
Land - acquisition & development	1,028		1,028		—		—		—		—		—
Land - consumer lot loans	2,472		2,339		—		16		117		133		5.38
Multi-family	3,692		3,692		—		—		—		—		—
Commercial real estate	101,542		101,369		—		—		173		173		0.17
Commercial & industrial	57,612		57,574		—		—		38		38		0.07
HELOC	6,414		5,973		224		217		—		441		6.88
Consumer	2,897		2,491		48		—		358		406		14.01
Total non-impaired acquired loans	188,552		187,338		272		233		709		1,214		0.64

Credit-impaired acquired loans
Single-family residential	6,284		6,284		—		—		—		—		—
Land - acquisition & development	1,842		771		203		—		868		1,071		58.14
Land - consumer lot loans	495		495		—		—		—		—		NM
Commercial real estate	71,189		69,448		608		—		1,133		1,741		2.45
Commercial & industrial	3,881		3,058		—		—		823		823		21.21
HELOC	8,549		8,236		—		—		313		313		3.66
Consumer	108		108		—		—		—		—		—
Total credit-impaired acquired loans	92,348		88,400		811		—		3,137		3,948		4.28

Total Loans	$	8,817,760	$	8,731,344	$	18,350	$	9,724	$	58,342	$	86,416	0.98	%



September 30, 2014	Amount of Loans		Days Delinquent Based on $ Amount of Loans										% based on $
Type of Loan	Net of LIP & Chg.-Offs		Current		30		60		90		Total		% based on $
	(In thousands)
Non-acquired loans
Single-family residential	$	5,557,753	$	5,467,239	$	15,926	$	9,139	$	65,449	$	90,514	1.63	%
Construction - speculative	87,035		87,035		—		—		—		—		—
Construction - custom	192,098		191,262		836		—		—		836		0.44
Land - acquisition & development	68,066		67,911		155		—		—		155		0.23
Land - consumer lot loans	108,589		104,571		1,246		304		2,468		4,018		3.70
Multi-family	892,196		891,372		205		16		603		824		0.09
Commercial real estate	529,453		513,409		67		15,118		859		16,044		3.03
Commercial & industrial	379,226		377,848		53		1,318		7		1,378		0.36
HELOC	116,262		115,262		335		292		373		1,000		0.86
Consumer	132,686		131,642		654		262		128		1,044		0.79
Total non-acquired loans	8,063,364		7,947,551		19,477		26,449		69,887		115,813		1.44

Non-impaired acquired loans
Single-family residential	11,716		11,693		—		—		23		23		0.20
Land - acquisition & development	905		905		—		—		—		—		—
Land - consumer lot loans	2,502		2,132		—		370		—		370		14.79
Multi-family	2,999		2,999		—		—		—		—		—
Commercial real estate	97,715		96,948		104		—		663		767		0.78
Commercial & industrial	51,329		51,229		—		100		—		100		0.19
HELOC	8,056		8,056		—		—		—		—		—
Consumer	5,670		4,983		22		4		661		687		12.12
Total non-impaired acquired loans	180,892		178,945		126		474		1,347		1,947		1.08

Credit-impaired acquired loans
Single-family residential	325		325		—		—		—		—		—
Land - acquisition & development	1,581		1,581		—		—		—		—		—
Commercial real estate	63,713		61,713		152		909		939		2,000		3.14
Commercial & industrial	3,477		3,470		7		—		—		7		0.20
HELOC	10,138		9,641		—		75		422		497		4.90
Consumer	54		54		—		—		—		—		—
Total credit-impaired acquired loans	79,288		76,784		159		984		1,361		2,504		3.16

Total Loans	$	8,323,544	$	8,203,280	$	19,762	$	27,907	$	72,595	$	120,264	1.44	%

Most loans restructured in troubled debt restructurings ("TDRs") are accruing and performing loans where the borrower has proactively approached the Company about modification due to temporary financial difficulties. As of June 30, 2015, 95.9% of the Bank's $321,481,000 in TDRs were classified as performing. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of between 100 to 200 basis points for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. As of June 30, 2015, single-family residential loans comprised 85.7% of TDRs.

The Company reserves for restructured loans within its allowance for loan loss methodology by taking into account the following performance indicators: 1) time since modification, 2) current payment status and 3) geographic area.

The following tables provide information related to loans that were restructured during the periods indicated:



	Quarter Ended June 30,
	2015					2014
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
	Contracts	Investment		Investment		Contracts	Investment		Investment
		(In thousands)					(In thousands)
Troubled Debt Restructurings:
Single-family residential	8	$	1,611	$	1,611	48	$	10,693	$	10,693
Land - acquisition & development	—	—		—		3	756		756
Land - consumer lot loans	2	203		203		5	573		573
Commercial real estate	—	—		—		2	1,398		1,398
	10	$	1,814	$	1,814	58	$	13,420	$	13,420

	Nine Months Ended June 30,
	2015					2014
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
	Contracts	Investment		Investment		Contracts	Investment		Investment
		(In thousands)					(In thousands)
Troubled Debt Restructurings:
Single-family residential	57	13,875		13,875		199	45,132		45,132
Construction - speculative	2	718		718		—	—		—
Construction - custom	2	532		532		—	—		—
Land - consumer lot loans	6	923		923		10	1,746		1,746
Multi-family	—	—		—		2	1,201		1,201
Commercial real estate	3	3,175		3,175		3	2,197		2,197
HELOC	—	—		—		1	261		261
Consumer	1	85		85		3	207		207
	71	$	19,308	$	19,308	221	$	51,500	$	51,500

The following tables provide information on restructured loans for which a payment default occurred during the periods indicated that had been modified as a TDR within 12 months or less of the payment default:



	Quarter Ended June 30,
	2015			2014
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(In thousands)			(In thousands)
Troubled Debt Restructurings That Subsequently Defaulted:
Single-family residential	9	$	1,594	17	$	3,088
Land - consumer lot loans	2	301		1	69
Consumer	—	—		1	170
	11	$	1,895	19	$	3,327

	Nine Months Ended June 30,
	2015			2014
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(In thousands)			(In thousands)
Troubled Debt Restructurings That Subsequently Defaulted:
Single-family residential	19	$	3,329	42	$	9,206
Land - consumer lot loans	7	991		4	445
Consumer	—	—		1	170
	26	$	4,320	47	$	9,821