x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Washington
|
|
91-1661606
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
||
425 Pike Street Seattle, Washington 98101
|
||
(Address of principal executive offices and zip code)
|
||
(206) 624-7930
|
||
(Registrant’s telephone number, including area code)
|
Large accelerated filer
|
x
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
o
|
Title of class:
|
at May 2, 2016
|
Common stock, $1.00 par value
|
91,069,431
|
|
March 31, 2016
|
|
September 30, 2015
|
||||
|
(In thousands, except share data)
|
||||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
276,084
|
|
|
$
|
284,049
|
|
Available-for-sale securities, at fair value
|
2,097,086
|
|
|
2,380,563
|
|
||
Held-to-maturity securities, at amortized cost
|
1,558,087
|
|
|
1,643,216
|
|
||
Loans receivable, net
|
9,545,322
|
|
|
9,170,634
|
|
||
Interest receivable
|
37,571
|
|
|
40,429
|
|
||
Premises and equipment, net
|
299,125
|
|
|
276,247
|
|
||
Real estate owned
|
38,770
|
|
|
61,098
|
|
||
FHLB and FRB stock
|
113,187
|
|
|
107,198
|
|
||
Bank owned life insurance
|
204,655
|
|
|
102,496
|
|
||
Intangible assets, including goodwill of $291,503
|
298,113
|
|
|
299,358
|
|
||
Federal and state income tax assets, net
|
11,544
|
|
|
14,513
|
|
||
Other assets
|
191,279
|
|
|
188,523
|
|
||
|
$
|
14,670,823
|
|
|
$
|
14,568,324
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Customer accounts
|
|
|
|
||||
Transaction deposit accounts
|
$
|
5,876,244
|
|
|
$
|
5,820,878
|
|
Time deposit accounts
|
4,667,140
|
|
|
4,810,825
|
|
||
|
10,543,384
|
|
|
10,631,703
|
|
||
FHLB advances
|
1,980,000
|
|
|
1,830,000
|
|
||
Advance payments by borrowers for taxes and insurance
|
23,863
|
|
|
50,224
|
|
||
Accrued expenses and other liabilities
|
161,116
|
|
|
100,718
|
|
||
|
12,708,363
|
|
|
12,612,645
|
|
||
Stockholders’ equity
|
|
|
|
||||
Common stock, $1.00 par value, 300,000,000 shares authorized;
134,092,173
and 133,695,803 shares issued;
91,270,241
and 92,936,395 shares outstanding
|
134,092
|
|
|
133,696
|
|
||
Paid-in capital
|
1,651,397
|
|
|
1,643,712
|
|
||
Accumulated other comprehensive (loss) income, net of taxes
|
(8,586
|
)
|
|
353
|
|
||
Treasury stock, at cost;
42,821,932
and 40,759,408 shares
|
(696,283
|
)
|
|
(651,836
|
)
|
||
Retained earnings
|
881,840
|
|
|
829,754
|
|
||
|
1,962,460
|
|
|
1,955,679
|
|
||
|
$
|
14,670,823
|
|
|
$
|
14,568,324
|
|
|
Three Months Ended March 31,
|
|
Six Months Ended March 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands, except share data)
|
|
(In thousands, except share data)
|
||||||||||||
INTEREST INCOME
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
113,211
|
|
|
$
|
109,274
|
|
|
$
|
226,074
|
|
|
$
|
217,567
|
|
Mortgage-backed securities
|
16,846
|
|
|
18,143
|
|
|
33,833
|
|
|
37,318
|
|
||||
Investment securities and cash equivalents
|
5,006
|
|
|
5,213
|
|
|
10,280
|
|
|
11,029
|
|
||||
|
135,063
|
|
|
132,630
|
|
|
270,187
|
|
|
265,914
|
|
||||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
||||||||
Customer accounts
|
13,071
|
|
|
12,574
|
|
|
25,788
|
|
|
26,018
|
|
||||
FHLB advances and other borrowings
|
15,667
|
|
|
16,176
|
|
|
31,205
|
|
|
33,832
|
|
||||
|
28,738
|
|
|
28,750
|
|
|
56,993
|
|
|
59,850
|
|
||||
Net interest income
|
106,325
|
|
|
103,880
|
|
|
213,194
|
|
|
206,064
|
|
||||
Provision for (release of) allowance for loan losses
|
(1,500
|
)
|
|
(3,949
|
)
|
|
(1,500
|
)
|
|
(9,449
|
)
|
||||
Net interest income after provision for (release of) allowance for loan losses
|
107,825
|
|
|
107,829
|
|
|
214,694
|
|
|
215,513
|
|
||||
|
|
|
|
|
|
|
|
||||||||
OTHER INCOME
|
|
|
|
|
|
|
|
||||||||
Loan fee income
|
1,166
|
|
|
2,048
|
|
|
2,683
|
|
|
4,112
|
|
||||
Deposit fee income
|
5,350
|
|
|
5,405
|
|
|
11,267
|
|
|
11,383
|
|
||||
Other income
|
4,213
|
|
|
3,388
|
|
|
7,414
|
|
|
726
|
|
||||
|
10,729
|
|
|
10,841
|
|
|
21,364
|
|
|
16,221
|
|
||||
|
|
|
|
|
|
|
|
||||||||
OTHER EXPENSE
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
29,184
|
|
|
30,469
|
|
|
58,883
|
|
|
59,629
|
|
||||
Occupancy
|
8,969
|
|
|
8,239
|
|
|
17,561
|
|
|
16,374
|
|
||||
FDIC insurance premiums
|
2,785
|
|
|
2,380
|
|
|
5,374
|
|
|
3,055
|
|
||||
Product delivery
|
4,294
|
|
|
5,420
|
|
|
9,817
|
|
|
11,047
|
|
||||
Information technology
|
7,453
|
|
|
3,882
|
|
|
16,163
|
|
|
7,912
|
|
||||
Other expense
|
6,541
|
|
|
6,934
|
|
|
15,937
|
|
|
12,909
|
|
||||
|
59,226
|
|
|
57,324
|
|
|
123,735
|
|
|
110,926
|
|
||||
Gain on real estate owned, net
|
3,894
|
|
|
1,473
|
|
|
5,314
|
|
|
1,788
|
|
||||
Income before income taxes
|
63,222
|
|
|
62,819
|
|
|
117,637
|
|
|
122,596
|
|
||||
Income tax expense
|
21,499
|
|
|
22,458
|
|
|
40,816
|
|
|
43,828
|
|
||||
NET INCOME
|
$
|
41,723
|
|
|
$
|
40,361
|
|
|
$
|
76,821
|
|
|
$
|
78,768
|
|
|
|
|
|
|
|
|
|
|
|||||||
PER SHARE DATA
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
0.45
|
|
|
$
|
0.42
|
|
|
$
|
0.83
|
|
|
$
|
0.81
|
|
Diluted earnings per share
|
0.45
|
|
|
0.42
|
|
|
0.83
|
|
|
0.81
|
|
||||
Dividends paid on common stock per share
|
0.14
|
|
|
0.13
|
|
|
0.27
|
|
|
0.28
|
|
||||
Basic weighted average number of shares outstanding
|
91,777,771
|
|
|
96,373,366
|
|
|
92,385,367
|
|
|
97,270,403
|
|
||||
Diluted weighted average number of shares outstanding
|
92,147,998
|
|
|
96,725,234
|
|
|
92,860,052
|
|
|
97,635,201
|
|
|
Three Months Ended March 31,
|
|
Six Months Ended March 31,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(In thousands)
|
|
(In thousands)
|
||||||||||||
Net income
|
$
|
41,723
|
|
|
$
|
40,361
|
|
|
$
|
76,821
|
|
|
$
|
78,768
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) net of tax:
|
|
|
|
|
|
|
|
||||||||
Net unrealized gain (loss) on available-for-sale securities
|
6,916
|
|
|
5,063
|
|
|
(3,445
|
)
|
|
13,623
|
|
||||
Related tax benefit (expense)
|
(2,542
|
)
|
|
(1,860
|
)
|
|
1,266
|
|
|
(5,006
|
)
|
||||
|
4,374
|
|
|
3,203
|
|
|
(2,179
|
)
|
|
8,617
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net unrealized gain (loss) on long-term borrowing hedge
|
(13,483
|
)
|
|
(4,985
|
)
|
|
(10,688
|
)
|
|
(9,233
|
)
|
||||
Related tax benefit (expense)
|
4,955
|
|
|
1,832
|
|
|
3,928
|
|
|
3,393
|
|
||||
|
(8,528
|
)
|
|
(3,153
|
)
|
|
(6,760
|
)
|
|
(5,840
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss) net of tax
|
(4,154
|
)
|
|
50
|
|
|
(8,939
|
)
|
|
2,777
|
|
||||
Comprehensive income
|
$
|
37,569
|
|
|
$
|
40,411
|
|
|
$
|
67,882
|
|
|
$
|
81,545
|
|
(in thousands)
|
Common Stock
|
Paid-in Capital
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
Treasury Stock
|
Total
|
||||||||||||
Balance at October 1, 2015
|
$
|
133,696
|
|
$
|
1,643,712
|
|
$
|
829,754
|
|
$
|
353
|
|
$
|
(651,836
|
)
|
$
|
1,955,679
|
|
Net income
|
|
|
|
|
76,821
|
|
|
|
|
|
76,821
|
|
||||||
Other comprehensive income (loss)
|
|
|
|
(8,939
|
)
|
|
(8,939
|
)
|
||||||||||
Dividends on common stock
|
|
|
|
|
(24,735
|
)
|
|
|
|
|
(24,735
|
)
|
||||||
Compensation expense related to common stock options
|
|
|
600
|
|
|
|
|
|
|
|
600
|
|
||||||
Proceeds from exercise of common stock options
|
250
|
|
5,149
|
|
|
|
|
|
|
|
5,399
|
|
||||||
Restricted stock expense
|
146
|
|
1,936
|
|
|
|
|
|
|
|
2,082
|
|
||||||
Treasury stock acquired
|
|
|
|
|
|
|
|
|
(44,447
|
)
|
(44,447
|
)
|
||||||
Balance at March 31, 2016
|
$
|
134,092
|
|
$
|
1,651,397
|
|
$
|
881,840
|
|
$
|
(8,586
|
)
|
$
|
(696,283
|
)
|
$
|
1,962,460
|
|
|
|
|
|
|
|
|
||||||||||||
(in thousands)
|
Common Stock
|
Paid-in Capital
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
Treasury Stock
|
Total
|
||||||||||||
Balance at October 1, 2014
|
$
|
133,323
|
|
$
|
1,638,211
|
|
$
|
706,149
|
|
$
|
20,708
|
|
$
|
(525,108
|
)
|
$
|
1,973,283
|
|
Net income
|
|
|
|
|
78,768
|
|
|
|
|
|
78,768
|
|
||||||
Other comprehensive income (loss)
|
|
|
|
2,777
|
|
|
2,777
|
|
||||||||||
Dividends on common stock
|
|
|
|
|
(12,406
|
)
|
|
|
|
|
(12,406
|
)
|
||||||
Compensation expense related to common stock options
|
|
|
600
|
|
|
|
|
|
|
|
600
|
|
||||||
Proceeds from exercise of common stock options
|
35
|
|
457
|
|
|
|
|
|
|
|
492
|
|
||||||
Restricted stock expense
|
265
|
|
1,716
|
|
|
|
|
|
|
|
1,981
|
|
||||||
Treasury stock acquired
|
|
|
|
|
|
|
|
|
(77,355
|
)
|
(77,355
|
)
|
||||||
Balance at March 31, 2015
|
$
|
133,623
|
|
$
|
1,640,984
|
|
$
|
772,511
|
|
$
|
23,485
|
|
$
|
(602,463
|
)
|
$
|
1,968,140
|
|
|
Six Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
||||||
Net income
|
$
|
76,821
|
|
|
$
|
78,768
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, amortization, accretion and restricted stock expense
|
11,082
|
|
|
10,566
|
|
||
Cash received from (paid to) FDIC under loss share
|
2,153
|
|
|
(738
|
)
|
||
Stock option compensation expense
|
600
|
|
|
600
|
|
||
Release of provision for loan losses
|
(1,500
|
)
|
|
(9,449
|
)
|
||
Loss (gain) on investment securities and real estate owned
|
(6,629
|
)
|
|
(12,338
|
)
|
||
Decrease (increase) in accrued interest receivable
|
2,858
|
|
|
11,678
|
|
||
Decrease (increase) in federal and state income tax receivable
|
8,163
|
|
|
6,995
|
|
||
Decrease (increase) in cash surrender value of bank owned life insurance
|
(2,159
|
)
|
|
(961
|
)
|
||
Decrease (increase) in other assets
|
(5,551
|
)
|
|
(26,667
|
)
|
||
Increase (decrease) in accrued expenses and other liabilities
|
49,710
|
|
|
586
|
|
||
Net cash provided by operating activities
|
135,548
|
|
|
59,040
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Origination of loans and principal repayments, net
|
(321,573
|
)
|
|
(78,301
|
)
|
||
Loans purchased
|
(51,646
|
)
|
|
(146,832
|
)
|
||
FHLB & FRB stock purchased
|
(32,329
|
)
|
|
—
|
|
||
FHLB & FRB stock redemption
|
26,340
|
|
|
7,921
|
|
||
Available-for-sale securities purchased
|
(50,741
|
)
|
|
(163,126
|
)
|
||
Principal payments and maturities of available-for-sale securities
|
328,188
|
|
|
466,991
|
|
||
Principal payments and maturities of held-to-maturity securities
|
82,536
|
|
|
65,913
|
|
||
Proceeds from sales of real estate owned
|
38,347
|
|
|
37,404
|
|
||
Purchase of bank owned life insurance
|
(100,000
|
)
|
|
(100,000
|
)
|
||
Premises and equipment purchased and REO improvements
|
(34,248
|
)
|
|
(16,897
|
)
|
||
Net cash provided by (used in) investing activities
|
(115,126
|
)
|
|
73,073
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Net increase (decrease) in customer accounts
|
(88,243
|
)
|
|
(24,227
|
)
|
||
Proceeds from borrowings
|
818,000
|
|
|
—
|
|
||
Repayments of borrowings
|
(668,000
|
)
|
|
(100,000
|
)
|
||
Proceeds from exercise of common stock options and related tax benefit
|
5,399
|
|
|
492
|
|
||
Dividends paid on common stock
|
(24,735
|
)
|
|
(26,806
|
)
|
||
Treasury stock purchased
|
(44,447
|
)
|
|
(77,355
|
)
|
||
Increase (decrease) in advance payments by borrowers for taxes and insurance
|
(26,361
|
)
|
|
(10,996
|
)
|
||
Net cash provided by (used in) financing activities
|
(28,387
|
)
|
|
(238,892
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
(7,965
|
)
|
|
(106,779
|
)
|
||
Cash and cash equivalents at beginning of period
|
284,049
|
|
|
781,843
|
|
||
Cash and cash equivalents at end of period
|
$
|
276,084
|
|
|
$
|
675,064
|
|
|
Six Months Ended March 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
|
||||||
Non-cash investing activities
|
|
|
|
||||
Real estate acquired through foreclosure
|
$
|
10,535
|
|
|
$
|
19,927
|
|
Cash paid during the period for
|
|
|
|
||||
Interest
|
57,325
|
|
|
62,193
|
|
||
Income taxes
|
27,245
|
|
|
32,517
|
|
|
March 31, 2016
|
|
September 30, 2015
|
||||||||
|
(In thousands)
|
|
(In thousands)
|
||||||||
Non-Acquired loans
|
|
|
|
|
|
||||||
Single-family residential
|
$
|
5,618,954
|
|
54.5
|
%
|
|
$
|
5,651,845
|
|
57.6
|
%
|
Construction
|
785,846
|
|
7.6
|
|
|
200,509
|
|
2.0
|
|
||
Construction - custom
|
398,797
|
|
3.9
|
|
|
396,307
|
|
4.0
|
|
||
Land - acquisition & development
|
101,605
|
|
1.0
|
|
|
94,208
|
|
1.0
|
|
||
Land - consumer lot loans
|
100,856
|
|
1.0
|
|
|
103,989
|
|
1.1
|
|
||
Multi-family
|
1,073,222
|
|
10.4
|
|
|
1,125,722
|
|
11.6
|
|
||
Commercial real estate
|
833,570
|
|
8.1
|
|
|
986,270
|
|
10.0
|
|
||
Commercial & industrial
|
805,272
|
|
7.8
|
|
|
612,836
|
|
6.2
|
|
||
HELOC
|
130,459
|
|
1.3
|
|
|
127,646
|
|
1.3
|
|
||
Consumer
|
164,672
|
|
1.6
|
|
|
194,655
|
|
2.0
|
|
||
Total non-acquired loans
|
10,013,253
|
|
97.2
|
%
|
|
9,493,987
|
|
96.8
|
%
|
||
Acquired loans
|
152,572
|
|
1.5
|
|
|
166,293
|
|
1.6
|
|
||
Credit impaired acquired loans
|
106,637
|
|
1.0
|
|
|
87,081
|
|
0.9
|
|
||
Covered loans
|
34,211
|
|
0.3
|
|
|
75,909
|
|
0.7
|
|
||
Total gross loans
|
10,306,673
|
|
100.0
|
%
|
|
9,823,270
|
|
100.0
|
%
|
||
Less:
|
|
|
|
|
|
||||||
Allowance for loan losses
|
109,919
|
|
|
|
106,829
|
|
|
||||
Loans in process
|
591,667
|
|
|
|
476,796
|
|
|
||||
Discount on acquired loans
|
21,120
|
|
|
|
30,095
|
|
|
||||
Deferred net origination fees
|
38,645
|
|
|
|
38,916
|
|
|
||||
Total loan contra accounts
|
761,351
|
|
|
|
652,636
|
|
|
||||
Net Loans
|
$
|
9,545,322
|
|
|
|
$
|
9,170,634
|
|
|
||
|
|
|
|
|
|
|
March 31, 2016
|
|
September 30, 2015
|
||||||||||
|
(In thousands)
|
||||||||||||
Non-accrual loans:
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
$
|
42,395
|
|
|
77.7
|
%
|
|
$
|
59,074
|
|
|
87.1
|
%
|
Construction
|
—
|
|
|
—
|
|
|
754
|
|
|
1.1
|
|
||
Construction - custom
|
67
|
|
|
0.1
|
|
|
732
|
|
|
1.1
|
|
||
Land - acquisition & development
|
477
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
||
Land - consumer lot loans
|
940
|
|
|
1.7
|
|
|
1,273
|
|
|
1.9
|
|
||
Multi-family
|
1,520
|
|
|
2.8
|
|
|
2,558
|
|
|
3.8
|
|
||
Commercial real estate
|
7,701
|
|
|
14.1
|
|
|
2,176
|
|
|
3.2
|
|
||
Commercial & industrial
|
596
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
||
HELOC
|
554
|
|
|
1.0
|
|
|
563
|
|
|
0.8
|
|
||
Consumer
|
309
|
|
|
0.6
|
|
|
680
|
|
|
1.0
|
|
||
Total non-accrual loans
|
$
|
54,559
|
|
|
100
|
%
|
|
$
|
67,810
|
|
|
100
|
%
|
March 31, 2016
|
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
|
|
||||||||||||||
|
(In thousands)
|
|
|
|||||||||||||||||||||||
Non-acquired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Single-Family Residential
|
$
|
5,624,134
|
|
|
$
|
5,558,731
|
|
|
$
|
18,000
|
|
|
$
|
7,785
|
|
|
$
|
39,618
|
|
|
$
|
65,403
|
|
|
1.16
|
%
|
Construction
|
396,322
|
|
|
396,181
|
|
|
—
|
|
|
—
|
|
|
141
|
|
|
141
|
|
|
0.04
|
|
||||||
Construction - Custom
|
212,067
|
|
|
209,153
|
|
|
1,047
|
|
|
1,800
|
|
|
67
|
|
|
2,914
|
|
|
1.37
|
|
||||||
Land - Acquisition & Development
|
92,467
|
|
|
90,541
|
|
|
1,445
|
|
|
—
|
|
|
481
|
|
|
1,926
|
|
|
2.08
|
|
||||||
Land - Consumer Lot Loans
|
101,372
|
|
|
99,379
|
|
|
563
|
|
|
490
|
|
|
940
|
|
|
1,993
|
|
|
1.97
|
|
||||||
Multi-Family
|
1,077,248
|
|
|
1,075,662
|
|
|
970
|
|
|
—
|
|
|
616
|
|
|
1,586
|
|
|
0.15
|
|
||||||
Commercial Real Estate
|
889,342
|
|
|
881,896
|
|
|
1,766
|
|
|
53
|
|
|
5,627
|
|
|
7,446
|
|
|
0.84
|
|
||||||
Commercial & Industrial
|
810,452
|
|
|
808,825
|
|
|
862
|
|
|
—
|
|
|
765
|
|
|
1,627
|
|
|
0.20
|
|
||||||
HELOC
|
130,446
|
|
|
129,456
|
|
|
378
|
|
|
63
|
|
|
549
|
|
|
990
|
|
|
0.76
|
|
||||||
Consumer
|
164,942
|
|
|
163,620
|
|
|
757
|
|
|
207
|
|
|
358
|
|
|
1,322
|
|
|
0.80
|
|
||||||
|
9,498,792
|
|
|
9,413,444
|
|
|
25,788
|
|
|
10,398
|
|
|
49,162
|
|
|
85,348
|
|
|
0.90
|
|
||||||
Acquired loans
|
131,079
|
|
|
130,030
|
|
|
376
|
|
|
2
|
|
|
671
|
|
|
1,049
|
|
|
0.80
|
|
||||||
Credit impaired acquired loans
|
50,924
|
|
|
50,604
|
|
|
—
|
|
|
44
|
|
|
276
|
|
|
320
|
|
|
0.63
|
|
||||||
Covered loans
|
34,211
|
|
|
33,575
|
|
|
38
|
|
|
2
|
|
|
596
|
|
|
636
|
|
|
1.86
|
|
||||||
Total Loans
|
$
|
9,715,006
|
|
|
$
|
9,627,653
|
|
|
$
|
26,202
|
|
|
$
|
10,446
|
|
|
$
|
50,705
|
|
|
$
|
87,353
|
|
|
0.90
|
%
|
Delinquency %
|
|
|
99.10%
|
|
0.27%
|
|
0.11%
|
|
0.52%
|
|
0.90%
|
|
|
September 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
|
|
||||||||||||||
|
(In thousands)
|
|
|
|||||||||||||||||||||||
Non-acquired loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Single-Family Residential
|
$
|
5,655,928
|
|
|
$
|
5,590,673
|
|
|
$
|
17,305
|
|
|
$
|
7,757
|
|
|
$
|
40,193
|
|
|
$
|
65,255
|
|
|
1.15
|
%
|
Construction
|
130,121
|
|
|
130,121
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Construction - Custom
|
205,692
|
|
|
204,168
|
|
|
791
|
|
|
270
|
|
|
463
|
|
|
1,524
|
|
|
0.74
|
|
||||||
Land - Acquisition & Development
|
75,661
|
|
|
74,737
|
|
|
406
|
|
|
—
|
|
|
518
|
|
|
924
|
|
|
1.22
|
|
||||||
Land - Consumer Lot Loans
|
104,494
|
|
|
102,045
|
|
|
689
|
|
|
399
|
|
|
1,361
|
|
|
2,449
|
|
|
2.34
|
|
||||||
Multi-Family
|
1,068,038
|
|
|
1,065,667
|
|
|
259
|
|
|
454
|
|
|
1,658
|
|
|
2,371
|
|
|
0.22
|
|
||||||
Commercial Real Estate
|
893,072
|
|
|
892,180
|
|
|
131
|
|
|
—
|
|
|
761
|
|
|
892
|
|
|
0.10
|
|
||||||
Commercial & Industrial
|
617,545
|
|
|
616,602
|
|
|
93
|
|
|
27
|
|
|
823
|
|
|
943
|
|
|
0.15
|
|
||||||
HELOC
|
127,648
|
|
|
127,196
|
|
|
174
|
|
|
27
|
|
|
251
|
|
|
452
|
|
|
0.35
|
|
||||||
Consumer
|
194,977
|
|
|
194,259
|
|
|
493
|
|
|
170
|
|
|
55
|
|
|
718
|
|
|
0.37
|
|
||||||
|
9,073,176
|
|
|
8,997,648
|
|
|
20,341
|
|
|
9,104
|
|
|
46,083
|
|
|
75,528
|
|
|
0.83
|
|
||||||
Acquired loans
|
57,682
|
|
|
56,559
|
|
|
356
|
|
|
—
|
|
|
767
|
|
|
1,123
|
|
|
1.95
|
|
||||||
Credit impaired acquired loans
|
139,726
|
|
|
138,940
|
|
|
243
|
|
|
4
|
|
|
539
|
|
|
786
|
|
|
0.56
|
|
||||||
Covered loans
|
75,890
|
|
|
70,729
|
|
|
272
|
|
|
90
|
|
|
4,799
|
|
|
5,161
|
|
|
6.80
|
|
||||||
Total Loans
|
$
|
9,346,474
|
|
|
$
|
9,263,876
|
|
|
$
|
21,212
|
|
|
$
|
9,198
|
|
|
$
|
52,188
|
|
|
$
|
82,598
|
|
|
0.88
|
%
|
Delinquency %
|
|
|
99.12%
|
|
0.23%
|
|
0.10%
|
|
0.56%
|
|
0.88%
|
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||
|
|
|
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
|
7
|
|
|
$
|
1,101
|
|
|
$
|
1,101
|
|
|
14
|
|
|
$
|
2,664
|
|
|
$
|
2,664
|
|
Land - consumer lot loans
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
720
|
|
|
720
|
|
||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
3
|
|
|
3,175
|
|
|
3,175
|
|
||||
|
7
|
|
|
$
|
1,101
|
|
|
$
|
1,101
|
|
|
21
|
|
|
$
|
6,559
|
|
|
$
|
6,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Six Months Ended March 31,
|
||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||
|
|
|
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
|
10
|
|
|
$
|
1,830
|
|
|
$
|
1,830
|
|
|
49
|
|
|
$
|
12,264
|
|
|
$
|
12,264
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
718
|
|
|
718
|
|
||||
Land - consumer lot loans
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
1,252
|
|
|
1,252
|
|
||||
Commercial real estate
|
5
|
|
|
965
|
|
|
965
|
|
|
3
|
|
|
3,175
|
|
|
3,175
|
|
||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
85
|
|
|
85
|
|
||||
|
15
|
|
|
$
|
2,795
|
|
|
$
|
2,795
|
|
|
61
|
|
|
$
|
17,494
|
|
|
$
|
17,494
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
2016
|
|
2015
|
||||||||||
|
Number of
|
|
Recorded
|
|
Number of
|
|
Recorded
|
||||||
|
Contracts
|
|
Investment
|
|
Contracts
|
|
Investment
|
||||||
|
(In thousands)
|
|
(In thousands)
|
||||||||||
TDRs That Subsequently Defaulted:
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
6
|
|
|
$
|
871
|
|
|
2
|
|
|
$
|
304
|
|
Land - consumer lot loans
|
1
|
|
|
146
|
|
|
2
|
|
|
301
|
|
||
Commercial real estate
|
1
|
|
|
152
|
|
|
—
|
|
|
—
|
|
||
|
8
|
|
|
$
|
1,169
|
|
|
4
|
|
|
$
|
605
|
|
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended March 31,
|
||||||||||||
|
2016
|
|
2015
|
||||||||||
|
Number of
|
|
Recorded
|
|
Number of
|
|
Recorded
|
||||||
|
Contracts
|
|
Investment
|
|
Contracts
|
|
Investment
|
||||||
|
(In thousands)
|
|
(In thousands)
|
||||||||||
TDRs That Subsequently Defaulted:
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
8
|
|
|
$
|
1,095
|
|
|
7
|
|
|
$
|
1,237
|
|
Land - consumer lot loans
|
1
|
|
|
146
|
|
|
3
|
|
|
389
|
|
||
Commercial real estate
|
1
|
|
|
152
|
|
|
—
|
|
|
—
|
|
||
|
10
|
|
|
$
|
1,393
|
|
|
10
|
|
|
$
|
1,626
|
|
|
Six Months Ended March 31, 2016
|
|
Year Ended September 30, 2015
|
||||||||||||||||||||||||||||
|
Acquired Impaired
|
|
Acquired Non-impaired
|
|
Acquired Impaired
|
|
Acquired Non-impaired
|
||||||||||||||||||||||||
|
Accretable
Yield
|
|
Carrying
Amount of
Loans
|
|
Accretable
Yield
|
|
Carrying
Amount of
Loans
|
|
Accretable
Yield
|
|
Carrying
Amount of
Loans
|
|
Accretable
Yield
|
|
Carrying
Amount of
Loans
|
||||||||||||||||
|
(In thousands)
|
|
(In thousands)
|
||||||||||||||||||||||||||||
Beginning balance
|
$
|
72,705
|
|
|
$
|
111,300
|
|
|
$
|
7,204
|
|
|
$
|
187,080
|
|
|
$
|
97,125
|
|
|
$
|
135,826
|
|
|
$
|
14,513
|
|
|
$
|
275,862
|
|
Additions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net reclassification from nonaccretable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,307
|
|
|
—
|
|
|
346
|
|
|
—
|
|
||||||||
Accretion
|
(11,010
|
)
|
|
11,010
|
|
|
(1,485
|
)
|
|
1,485
|
|
|
(30,727
|
)
|
|
30,727
|
|
|
(7,655
|
)
|
|
7,655
|
|
||||||||
Transfers to REO
|
—
|
|
|
(123
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,975
|
)
|
|
—
|
|
|
(150
|
)
|
||||||||
Payments received, net
|
—
|
|
|
(21,039
|
)
|
|
—
|
|
|
(17,419
|
)
|
|
—
|
|
|
(52,278
|
)
|
|
—
|
|
|
(96,287
|
)
|
||||||||
Ending Balance
|
$
|
61,695
|
|
|
$
|
101,148
|
|
|
$
|
5,719
|
|
|
$
|
171,146
|
|
|
$
|
72,705
|
|
|
$
|
111,300
|
|
|
$
|
7,204
|
|
|
$
|
187,080
|
|
|
Six Months Ended March 31, 2016
|
|
Year Ended September 30, 2015
|
||||
|
(In thousands)
|
||||||
Balance at beginning of period
|
$
|
16,275
|
|
|
$
|
36,860
|
|
Additions/Adjustments
|
—
|
|
|
(1,795
|
)
|
||
Payments received
|
(2,153
|
)
|
|
(720
|
)
|
||
Amortization
|
(773
|
)
|
|
(18,588
|
)
|
||
Accretion
|
131
|
|
|
518
|
|
||
Balance at end of period
|
$
|
13,480
|
|
|
$
|
16,275
|
|
Three Months Ended March 31, 2016
|
Beginning
Allowance
|
|
Charge-offs
|
|
Recoveries
|
|
Provision &
Transfers
|
|
Ending
Allowance
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Single-family residential
|
$
|
47,756
|
|
|
$
|
(1,026
|
)
|
|
$
|
111
|
|
|
$
|
(5,013
|
)
|
|
$
|
41,828
|
|
Construction
|
7,014
|
|
|
—
|
|
|
(5
|
)
|
|
8,717
|
|
|
15,726
|
|
|||||
Construction - custom
|
1,062
|
|
|
—
|
|
|
—
|
|
|
(40
|
)
|
|
1,022
|
|
|||||
Land - acquisition & development
|
6,778
|
|
|
—
|
|
|
3,371
|
|
|
(2,897
|
)
|
|
7,252
|
|
|||||
Land - consumer lot loans
|
3,001
|
|
|
(268
|
)
|
|
—
|
|
|
(267
|
)
|
|
2,466
|
|
|||||
Multi-family
|
5,047
|
|
|
—
|
|
|
—
|
|
|
1,737
|
|
|
6,784
|
|
|||||
Commercial real estate
|
10,344
|
|
|
(9
|
)
|
|
992
|
|
|
(3,544
|
)
|
|
7,783
|
|
|||||
Commercial & industrial
|
24,096
|
|
|
(331
|
)
|
|
590
|
|
|
(531
|
)
|
|
23,824
|
|
|||||
HELOC
|
820
|
|
|
(26
|
)
|
|
—
|
|
|
34
|
|
|
828
|
|
|||||
Consumer
|
1,983
|
|
|
(278
|
)
|
|
397
|
|
|
304
|
|
|
2,406
|
|
|||||
|
$
|
107,901
|
|
|
$
|
(1,938
|
)
|
|
$
|
5,456
|
|
|
$
|
(1,500
|
)
|
|
$
|
109,919
|
|
Three Months Ended March 31, 2015
|
Beginning
Allowance
|
|
Charge-offs
|
|
Recoveries
|
|
Provision &
Transfers
|
|
Ending
Allowance
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Single-family residential
|
$
|
55,495
|
|
|
$
|
(1,409
|
)
|
|
$
|
4,122
|
|
|
$
|
(3,446
|
)
|
|
$
|
54,762
|
|
Construction
|
5,451
|
|
|
—
|
|
|
75
|
|
|
(81
|
)
|
|
5,445
|
|
|||||
Construction - custom
|
965
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
968
|
|
|||||
Land - acquisition & development
|
6,671
|
|
|
—
|
|
|
204
|
|
|
530
|
|
|
7,405
|
|
|||||
Land - consumer lot loans
|
3,113
|
|
|
(52
|
)
|
|
34
|
|
|
(60
|
)
|
|
3,035
|
|
|||||
Multi-family
|
4,500
|
|
|
—
|
|
|
—
|
|
|
173
|
|
|
4,673
|
|
|||||
Commercial real estate
|
5,872
|
|
|
—
|
|
|
453
|
|
|
409
|
|
|
6,734
|
|
|||||
Commercial & industrial
|
23,328
|
|
|
(355
|
)
|
|
18
|
|
|
(1,845
|
)
|
|
21,146
|
|
|||||
HELOC
|
892
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
850
|
|
|||||
Consumer
|
2,413
|
|
|
(701
|
)
|
|
734
|
|
|
859
|
|
|
3,305
|
|
|||||
|
$
|
108,700
|
|
|
$
|
(2,517
|
)
|
|
$
|
5,640
|
|
|
$
|
(3,500
|
)
|
|
$
|
108,323
|
|
Six Months Ended March 31, 2016
|
Beginning
Allowance
|
|
Charge-offs
|
|
Recoveries
|
|
Provision &
Transfers
|
|
Ending
Allowance
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Single-family residential
|
$
|
47,347
|
|
|
$
|
(2,165
|
)
|
|
$
|
2,577
|
|
|
$
|
(5,931
|
)
|
|
$
|
41,828
|
|
Construction
|
6,680
|
|
|
—
|
|
|
150
|
|
|
8,896
|
|
|
15,726
|
|
|||||
Construction - custom
|
990
|
|
|
(60
|
)
|
|
—
|
|
|
92
|
|
|
1,022
|
|
|||||
Land - acquisition & development
|
5,781
|
|
|
—
|
|
|
3,406
|
|
|
(1,935
|
)
|
|
7,252
|
|
|||||
Land - consumer lot loans
|
2,946
|
|
|
(676
|
)
|
|
—
|
|
|
196
|
|
|
2,466
|
|
|||||
Multi-family
|
5,304
|
|
|
—
|
|
|
—
|
|
|
1,480
|
|
|
6,784
|
|
|||||
Commercial real estate
|
8,960
|
|
|
(32
|
)
|
|
1,115
|
|
|
(2,260
|
)
|
|
7,783
|
|
|||||
Commercial & industrial
|
24,980
|
|
|
(579
|
)
|
|
591
|
|
|
(1,168
|
)
|
|
23,824
|
|
|||||
HELOC
|
902
|
|
|
(27
|
)
|
|
21
|
|
|
(68
|
)
|
|
828
|
|
|||||
Consumer
|
2,939
|
|
|
(520
|
)
|
|
789
|
|
|
(802
|
)
|
|
2,406
|
|
|||||
|
$
|
106,829
|
|
|
$
|
(4,059
|
)
|
|
$
|
8,649
|
|
|
$
|
(1,500
|
)
|
|
$
|
109,919
|
|
Six Months Ended March 31, 2015
|
Beginning
Allowance
|
|
Charge-offs
|
|
Recoveries
|
|
Provision &
Transfers
|
|
Ending
Allowance
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Single-family residential
|
$
|
62,763
|
|
|
$
|
(3,103
|
)
|
|
$
|
6,675
|
|
|
$
|
(11,573
|
)
|
|
$
|
54,762
|
|
Construction
|
6,742
|
|
|
(388
|
)
|
|
75
|
|
|
(984
|
)
|
|
5,445
|
|
|||||
Construction - custom
|
1,695
|
|
|
—
|
|
|
—
|
|
|
(727
|
)
|
|
968
|
|
|||||
Land - acquisition & development
|
5,592
|
|
|
(38
|
)
|
|
205
|
|
|
1,646
|
|
|
7,405
|
|
|||||
Land - consumer lot loans
|
3,077
|
|
|
(87
|
)
|
|
34
|
|
|
11
|
|
|
3,035
|
|
|||||
Multi-family
|
4,248
|
|
|
—
|
|
|
220
|
|
|
205
|
|
|
4,673
|
|
|||||
Commercial real estate
|
7,548
|
|
|
(27
|
)
|
|
481
|
|
|
(1,268
|
)
|
|
6,734
|
|
|||||
Commercial & industrial
|
16,527
|
|
|
(355
|
)
|
|
52
|
|
|
4,922
|
|
|
21,146
|
|
|||||
HELOC
|
928
|
|
|
—
|
|
|
—
|
|
|
(78
|
)
|
|
850
|
|
|||||
Consumer
|
3,227
|
|
|
(1,128
|
)
|
|
1,349
|
|
|
(143
|
)
|
|
3,305
|
|
|||||
Covered loans
|
2,244
|
|
|
|
|
|
|
(2,244
|
)
|
|
—
|
|
|||||||
|
$
|
114,591
|
|
|
$
|
(5,126
|
)
|
|
$
|
9,091
|
|
|
$
|
(10,233
|
)
|
|
$
|
108,323
|
|
March 31, 2016
|
Loans Collectively Evaluated for Impairment
|
|
Loans Individually Evaluated for Impairment
|
||||||||||||||||||
|
Allowance Allocation
|
|
Recorded Investment of Loans (1)
|
|
Ratio
|
|
Allowance Allocation
|
|
Recorded Investment of Loans (1)
|
|
Ratio
|
||||||||||
|
(In thousands)
|
|
|
|
(In thousands)
|
||||||||||||||||
Single-family residential
|
$
|
40,974
|
|
|
$
|
5,557,463
|
|
|
0.7
|
%
|
|
$
|
854
|
|
|
$
|
28,462
|
|
|
3.0
|
%
|
Construction
|
15,726
|
|
|
391,616
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Construction - custom
|
1,021
|
|
|
210,809
|
|
|
0.5
|
|
|
—
|
|
|
171
|
|
|
—
|
|
||||
Land - acquisition & development
|
7,221
|
|
|
88,064
|
|
|
8.2
|
|
|
31
|
|
|
1,280
|
|
|
2.4
|
|
||||
Land - consumer lot loans
|
2,466
|
|
|
89,741
|
|
|
2.8
|
|
|
—
|
|
|
1,114
|
|
|
—
|
|
||||
Multi-family
|
6,774
|
|
|
1,070,178
|
|
|
0.6
|
|
|
11
|
|
|
1,522
|
|
|
0.7
|
|
||||
Commercial real estate
|
7,643
|
|
|
810,343
|
|
|
0.9
|
|
|
140
|
|
|
12,602
|
|
|
1.1
|
|
||||
Commercial & industrial
|
23,824
|
|
|
829,394
|
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
HELOC
|
828
|
|
|
128,295
|
|
|
0.7
|
|
|
—
|
|
|
566
|
|
|
—
|
|
||||
Consumer
|
2,406
|
|
|
164,612
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
108,883
|
|
|
$
|
9,340,515
|
|
|
1.2
|
%
|
|
$
|
1,036
|
|
|
$
|
45,717
|
|
|
2.3
|
%
|
(1)
|
Excludes acquired loans with discounts sufficient to absorb potential losses and covered loans
|
September 30, 2015
|
Loans Collectively Evaluated for Impairment
|
|
Loans Individually Evaluated for Impairment
|
||||||||||||||||||
|
Allowance Allocation
|
|
Recorded Investment of Loans (1)
|
|
Ratio
|
|
Allowance Allocation
|
|
Recorded Investment of Loans (1)
|
|
Ratio
|
||||||||||
|
(In thousands)
|
|
|
|
(In thousands)
|
||||||||||||||||
Single-family residential
|
$
|
47,073
|
|
|
$
|
5,595,752
|
|
|
0.8
|
%
|
|
$
|
275
|
|
|
$
|
51,718
|
|
|
0.5
|
%
|
Construction
|
6,680
|
|
|
124,679
|
|
|
5.4
|
|
|
—
|
|
|
5,441
|
|
|
—
|
|
||||
Construction - custom
|
990
|
|
|
205,692
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Land - acquisition & development
|
5,781
|
|
|
72,602
|
|
|
8.0
|
|
|
—
|
|
|
2,198
|
|
|
—
|
|
||||
Land - consumer lot loans
|
2,946
|
|
|
93,103
|
|
|
3.2
|
|
|
—
|
|
|
10,824
|
|
|
—
|
|
||||
Multi-family
|
5,304
|
|
|
1,062,194
|
|
|
0.5
|
|
|
—
|
|
|
5,348
|
|
|
—
|
|
||||
Commercial real estate
|
8,960
|
|
|
844,691
|
|
|
1.1
|
|
|
—
|
|
|
8,826
|
|
|
—
|
|
||||
Commercial & industrial
|
24,980
|
|
|
643,577
|
|
|
3.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
HELOC
|
902
|
|
|
126,594
|
|
|
0.7
|
|
|
—
|
|
|
1,072
|
|
|
—
|
|
||||
Consumer
|
2,938
|
|
|
194,569
|
|
|
1.5
|
|
|
—
|
|
|
86
|
|
|
—
|
|
||||
|
$
|
106,554
|
|
|
$
|
8,963,453
|
|
|
1.2
|
%
|
|
$
|
275
|
|
|
$
|
85,513
|
|
|
0.3
|
%
|
•
|
Pass
– the credit does not meet one of the definitions below.
|
•
|
Special mention
– A special mention credit is considered to be currently protected from loss but is potentially weak. No loss of principal or interest is foreseen; however, proper supervision and Management attention is required to deter further deterioration in the credit. Assets in this category constitute some undue and unwarranted credit risk but not to the point of justifying a risk rating of substandard. The credit risk may be relatively minor yet constitutes an unwarranted risk in light of the circumstances surrounding a specific asset.
|
•
|
Substandard
– A substandard credit is an unacceptable credit. Additionally, repayment in the normal course is in jeopardy due to the existence of one or more well defined weaknesses. In these situations, loss of principal is likely if the weakness is not corrected. A substandard asset is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Assets so classified will have a well defined weakness or weaknesses that jeopardize the collection or liquidation of the debt. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets risk rated substandard.
|
•
|
Doubtful
– A credit classified doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weakness makes collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The probability of loss is high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans.
|
•
|
Loss
– Credits classified loss are considered uncollectible and of such little value that their continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be affected in the future. Losses should be taken in the period in which they are identified as uncollectible. Partial charge-off versus full charge-off may be taken if the collateral offers some identifiable protection.
|
March 31, 2016
|
Internally Assigned Grade
|
|
|
||||||||||||||||||||
|
Pass
|
|
Special mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total Gross Loans
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Non-acquired loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family residential
|
$
|
5,547,231
|
|
|
$
|
—
|
|
|
$
|
71,723
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,618,954
|
|
Construction
|
774,540
|
|
|
7,500
|
|
|
3,806
|
|
|
—
|
|
|
—
|
|
|
785,846
|
|
||||||
Construction - custom
|
395,010
|
|
|
—
|
|
|
3,787
|
|
|
—
|
|
|
—
|
|
|
398,797
|
|
||||||
Land - acquisition & development
|
93,668
|
|
|
—
|
|
|
7,937
|
|
|
—
|
|
|
—
|
|
|
101,605
|
|
||||||
Land - consumer lot loans
|
99,081
|
|
|
—
|
|
|
1,775
|
|
|
—
|
|
|
—
|
|
|
100,856
|
|
||||||
Multi-family
|
1,065,161
|
|
|
3,613
|
|
|
4,448
|
|
|
—
|
|
|
—
|
|
|
1,073,222
|
|
||||||
Commercial real estate
|
813,405
|
|
|
8,281
|
|
|
11,884
|
|
|
—
|
|
|
—
|
|
|
833,570
|
|
||||||
Commercial & industrial
|
747,693
|
|
|
3,975
|
|
|
53,604
|
|
|
—
|
|
|
—
|
|
|
805,272
|
|
||||||
HELOC
|
129,656
|
|
|
—
|
|
|
803
|
|
|
—
|
|
|
—
|
|
|
130,459
|
|
||||||
Consumer
|
164,292
|
|
|
—
|
|
|
380
|
|
|
—
|
|
|
—
|
|
|
164,672
|
|
||||||
|
9,829,737
|
|
|
23,369
|
|
|
160,147
|
|
|
—
|
|
|
—
|
|
|
10,013,253
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-impaired acquired loans
|
143,164
|
|
|
—
|
|
|
9,408
|
|
|
—
|
|
|
—
|
|
|
152,572
|
|
||||||
Credit-impaired acquired loans
|
73,699
|
|
|
—
|
|
|
32,938
|
|
|
—
|
|
|
—
|
|
|
106,637
|
|
||||||
Covered loans
|
33,649
|
|
|
—
|
|
|
562
|
|
|
—
|
|
|
—
|
|
|
34,211
|
|
||||||
Total gross loans
|
$
|
10,080,249
|
|
|
$
|
23,369
|
|
|
$
|
203,055
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,306,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total grade as a % of total gross loans
|
97.8
|
%
|
|
0.2
|
%
|
|
2.0
|
%
|
|
—
|
%
|
|
—
|
%
|
|
|
September 30, 2015
|
Internally Assigned Grade
|
|
|
||||||||||||||||||||
|
Pass
|
|
Special mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total Gross Loans
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Non-acquired loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Single-family residential
|
$
|
5,558,700
|
|
|
$
|
—
|
|
|
$
|
93,145
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,651,845
|
|
Construction
|
197,935
|
|
|
—
|
|
|
2,574
|
|
|
—
|
|
|
—
|
|
|
200,509
|
|
||||||
Construction - custom
|
396,307
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
396,307
|
|
||||||
Land - acquisition & development
|
89,656
|
|
|
—
|
|
|
4,552
|
|
|
—
|
|
|
—
|
|
|
94,208
|
|
||||||
Land - consumer lot loans
|
103,569
|
|
|
—
|
|
|
420
|
|
|
—
|
|
|
—
|
|
|
103,989
|
|
||||||
Multi-family
|
1,118,673
|
|
|
865
|
|
|
6,184
|
|
|
—
|
|
|
—
|
|
|
1,125,722
|
|
||||||
Commercial real estate
|
971,510
|
|
|
4,360
|
|
|
10,400
|
|
|
—
|
|
|
—
|
|
|
986,270
|
|
||||||
Commercial & industrial
|
575,034
|
|
|
1,496
|
|
|
36,306
|
|
|
—
|
|
|
—
|
|
|
612,836
|
|
||||||
HELOC
|
127,398
|
|
|
—
|
|
|
248
|
|
|
—
|
|
|
—
|
|
|
127,646
|
|
||||||
Consumer
|
194,451
|
|
|
—
|
|
|
204
|
|
|
—
|
|
|
—
|
|
|
194,655
|
|
||||||
|
9,333,233
|
|
|
6,721
|
|
|
154,033
|
|
|
—
|
|
|
—
|
|
|
9,493,987
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-impaired acquired loans
|
149,891
|
|
|
—
|
|
|
16,402
|
|
|
—
|
|
|
—
|
|
|
166,293
|
|
||||||
Credit-impaired acquired loans
|
61,019
|
|
|
—
|
|
|
26,062
|
|
|
—
|
|
|
—
|
|
|
87,081
|
|
||||||
Covered loans
|
61,776
|
|
|
—
|
|
|
14,133
|
|
|
—
|
|
|
—
|
|
|
75,909
|
|
||||||
Total gross loans
|
$
|
9,605,919
|
|
|
$
|
6,721
|
|
|
$
|
210,630
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,823,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total grade as a % of total gross loans
|
97.8
|
%
|
|
0.1
|
%
|
|
2.1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
|
March 31, 2016
|
Performing Loans
|
|
Non-Performing Loans
|
||||||||||
|
Amount
|
|
% of Total
Gross Loans
|
|
Amount
|
|
% of Total
Gross Loans
|
||||||
|
(In thousands)
|
||||||||||||
Single-family residential
|
$
|
5,576,559
|
|
|
99.2
|
%
|
|
$
|
42,395
|
|
|
0.8
|
%
|
Construction
|
785,846
|
|
|
100.0
|
|
|
—
|
|
|
—
|
|
||
Construction - custom
|
398,730
|
|
|
100.0
|
|
|
67
|
|
|
—
|
|
||
Land - acquisition & development
|
101,128
|
|
|
99.5
|
|
|
477
|
|
|
0.5
|
|
||
Land - consumer lot loans
|
99,916
|
|
|
99.1
|
|
|
940
|
|
|
0.9
|
|
||
Multi-family
|
1,071,702
|
|
|
99.9
|
|
|
1,520
|
|
|
0.1
|
|
||
Commercial real estate
|
825,869
|
|
|
99.1
|
|
|
7,701
|
|
|
0.9
|
|
||
Commercial & industrial
|
804,676
|
|
|
99.9
|
|
|
596
|
|
|
0.1
|
|
||
HELOC
|
129,905
|
|
|
99.6
|
|
|
554
|
|
|
0.4
|
|
||
Consumer
|
164,363
|
|
|
99.8
|
|
|
309
|
|
|
0.2
|
|
||
|
$
|
9,958,694
|
|
|
99.5
|
%
|
|
$
|
54,559
|
|
|
0.5
|
%
|
September 30, 2015
|
Performing Loans
|
|
Non-Performing Loans
|
||||||||||
|
Amount
|
|
% of Total
Gross Loans
|
|
Amount
|
|
% of Total
Gross Loans
|
||||||
|
(In thousands)
|
||||||||||||
Single-family residential
|
$
|
5,592,771
|
|
|
99.0
|
%
|
|
$
|
59,074
|
|
|
1.0
|
%
|
Construction
|
199,755
|
|
|
99.6
|
|
|
754
|
|
|
0.4
|
|
||
Construction - custom
|
395,575
|
|
|
99.8
|
|
|
732
|
|
|
0.2
|
|
||
Land - acquisition & development
|
94,208
|
|
|
100.0
|
|
|
—
|
|
|
—
|
|
||
Land - consumer lot loans
|
102,716
|
|
|
98.8
|
|
|
1,273
|
|
|
1.2
|
|
||
Multi-family
|
1,123,165
|
|
|
99.8
|
|
|
2,558
|
|
|
0.2
|
|
||
Commercial real estate
|
984,093
|
|
|
99.8
|
|
|
2,176
|
|
|
0.2
|
|
||
Commercial & industrial
|
612,836
|
|
|
100.0
|
|
|
—
|
|
|
—
|
|
||
HELOC
|
127,083
|
|
|
99.6
|
|
|
563
|
|
|
0.4
|
|
||
Consumer
|
193,975
|
|
|
99.7
|
|
|
680
|
|
|
0.3
|
|
||
|
$
|
9,426,177
|
|
|
99.3
|
%
|
|
$
|
67,810
|
|
|
0.7
|
%
|
|
|
|
|
|
|
|
|
||||||||
March 31, 2016
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average Recorded Investment
|
||||||||
|
(In thousands)
|
||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
$
|
11,818
|
|
|
$
|
13,412
|
|
|
$
|
—
|
|
|
$
|
10,345
|
|
Construction - custom
|
699
|
|
|
759
|
|
|
—
|
|
|
449
|
|
||||
Land - acquisition & development
|
188
|
|
|
9,086
|
|
|
—
|
|
|
365
|
|
||||
Land - consumer lot loans
|
548
|
|
|
634
|
|
|
—
|
|
|
418
|
|
||||
Multi-family
|
1,044
|
|
|
4,793
|
|
|
—
|
|
|
675
|
|
||||
Commercial real estate
|
5,797
|
|
|
6,428
|
|
|
—
|
|
|
4,891
|
|
||||
Commercial & industrial
|
182
|
|
|
6,611
|
|
|
—
|
|
|
567
|
|
||||
HELOC
|
439
|
|
|
830
|
|
|
—
|
|
|
330
|
|
||||
Consumer
|
116
|
|
|
501
|
|
|
—
|
|
|
218
|
|
||||
|
20,831
|
|
|
43,054
|
|
|
—
|
|
|
18,258
|
|
||||
With an allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
233,544
|
|
|
237,663
|
|
|
4,277
|
|
|
234,260
|
|
||||
Land - acquisition & development
|
1,632
|
|
|
2,834
|
|
|
24
|
|
|
1,867
|
|
||||
Land - consumer lot loans
|
9,981
|
|
|
11,037
|
|
|
7
|
|
|
10,496
|
|
||||
Multi-family
|
1,522
|
|
|
1,522
|
|
|
11
|
|
|
1,527
|
|
||||
Commercial real estate
|
22,139
|
|
|
24,586
|
|
|
140
|
|
|
22,876
|
|
||||
HELOC
|
1,396
|
|
|
1,398
|
|
|
—
|
|
|
1,394
|
|
||||
Consumer
|
94
|
|
|
284
|
|
|
—
|
|
|
96
|
|
||||
|
270,308
|
|
|
279,324
|
|
|
4,459
|
|
(1)
|
272,516
|
|
||||
Total:
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
245,362
|
|
|
251,075
|
|
|
4,277
|
|
|
244,605
|
|
||||
Construction - custom
|
699
|
|
|
759
|
|
|
—
|
|
|
449
|
|
||||
Land - acquisition & development
|
1,820
|
|
|
11,920
|
|
|
24
|
|
|
2,232
|
|
||||
Land - consumer lot loans
|
10,529
|
|
|
11,671
|
|
|
7
|
|
|
10,914
|
|
||||
Multi-family
|
2,566
|
|
|
6,315
|
|
|
11
|
|
|
2,202
|
|
||||
Commercial real estate
|
27,936
|
|
|
31,014
|
|
|
140
|
|
|
27,767
|
|
||||
Commercial & industrial
|
182
|
|
|
6,611
|
|
|
—
|
|
|
567
|
|
||||
HELOC
|
1,835
|
|
|
2,228
|
|
|
—
|
|
|
1,724
|
|
||||
Consumer
|
210
|
|
|
785
|
|
|
—
|
|
|
314
|
|
||||
|
$
|
291,139
|
|
|
$
|
322,378
|
|
|
$
|
4,459
|
|
(1)
|
$
|
290,774
|
|
(1)
|
Includes
$1,036,000
of specific reserves and
$3,423,000
included in the general reserves.
|
September 30, 2015
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Average
Recorded
Investment
|
||||||||
|
(In thousands)
|
||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
$
|
17,250
|
|
|
$
|
19,644
|
|
|
$
|
—
|
|
|
$
|
14,069
|
|
Construction
|
453
|
|
|
2,151
|
|
|
—
|
|
|
471
|
|
||||
Construction - custom
|
554
|
|
|
554
|
|
|
—
|
|
|
182
|
|
||||
Land - acquisition & development
|
2,570
|
|
|
9,426
|
|
|
—
|
|
|
926
|
|
||||
Land - consumer lot loans
|
727
|
|
|
814
|
|
|
—
|
|
|
544
|
|
||||
Multi-family
|
3,770
|
|
|
7,054
|
|
|
—
|
|
|
1,545
|
|
||||
Commercial real estate
|
9,427
|
|
|
15,620
|
|
|
—
|
|
|
8,130
|
|
||||
Commercial & industrial
|
2,955
|
|
|
13,066
|
|
|
—
|
|
|
2,681
|
|
||||
HELOC
|
683
|
|
|
1,532
|
|
|
—
|
|
|
536
|
|
||||
Consumer
|
477
|
|
|
703
|
|
|
—
|
|
|
390
|
|
||||
|
38,866
|
|
|
70,564
|
|
|
—
|
|
|
29,474
|
|
||||
With an allowance recorded:
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
259,461
|
|
|
263,268
|
|
|
6,678
|
|
|
260,028
|
|
||||
Construction
|
4,988
|
|
|
5,778
|
|
|
—
|
|
|
5,432
|
|
||||
Land - acquisition & development
|
2,486
|
|
|
3,426
|
|
|
—
|
|
|
3,478
|
|
||||
Land - consumer lot loans
|
11,289
|
|
|
11,554
|
|
|
—
|
|
|
11,324
|
|
||||
Multi-family
|
3,823
|
|
|
3,823
|
|
|
—
|
|
|
3,732
|
|
||||
Commercial real estate
|
19,124
|
|
|
21,078
|
|
|
—
|
|
|
18,886
|
|
||||
HELOC
|
1,443
|
|
|
1,443
|
|
|
—
|
|
|
1,359
|
|
||||
Consumer
|
99
|
|
|
289
|
|
|
—
|
|
|
102
|
|
||||
|
302,713
|
|
|
310,659
|
|
|
6,678
|
|
(1)
|
304,341
|
|
||||
Total:
|
|
|
|
|
|
|
|
||||||||
Single-family residential
|
276,711
|
|
|
282,912
|
|
|
6,678
|
|
|
274,097
|
|
||||
Construction
|
5,441
|
|
|
7,929
|
|
|
—
|
|
|
5,903
|
|
||||
Construction - custom
|
554
|
|
|
554
|
|
|
—
|
|
|
182
|
|
||||
Land - acquisition & development
|
5,056
|
|
|
12,852
|
|
|
—
|
|
|
4,404
|
|
||||
Land - consumer lot loans
|
12,016
|
|
|
12,368
|
|
|
—
|
|
|
11,868
|
|
||||
Multi-family
|
7,593
|
|
|
10,877
|
|
|
—
|
|
|
5,277
|
|
||||
Commercial real estate
|
28,551
|
|
|
36,698
|
|
|
—
|
|
|
27,016
|
|
||||
Commercial & industrial
|
2,955
|
|
|
13,066
|
|
|
—
|
|
|
2,681
|
|
||||
HELOC
|
2,126
|
|
|
2,975
|
|
|
—
|
|
|
1,895
|
|
||||
Consumer
|
576
|
|
|
992
|
|
|
—
|
|
|
492
|
|
||||
|
$
|
341,579
|
|
|
$
|
381,223
|
|
|
$
|
6,678
|
|
(1)
|
$
|
333,815
|
|
(1)
|
Includes
$275,000
of specific reserves and
$6,403,000
included in the general reserves.
|
|
March 31, 2016
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
101,591
|
|
|
—
|
|
|
—
|
|
|
$
|
101,591
|
|
||
Obligations of U.S. government
|
—
|
|
|
264,544
|
|
|
—
|
|
|
264,544
|
|
||||
Obligations of states and political subdivisions
|
—
|
|
|
27,335
|
|
|
—
|
|
|
27,335
|
|
||||
Corporate debt securities
|
—
|
|
|
506,269
|
|
|
—
|
|
|
506,269
|
|
||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
||||||||
Agency pass-through certificates
|
—
|
|
|
1,105,016
|
|
|
—
|
|
|
1,105,016
|
|
||||
Other Commercial MBS
|
—
|
|
|
92,331
|
|
|
—
|
|
|
92,331
|
|
||||
Total available-for-sale securities
|
101,591
|
|
|
1,995,495
|
|
|
—
|
|
|
2,097,086
|
|
||||
Interest rate contracts
|
—
|
|
|
17,498
|
|
|
—
|
|
|
17,498
|
|
||||
Total financial assets
|
$
|
101,591
|
|
|
$
|
2,012,993
|
|
|
$
|
—
|
|
|
$
|
2,114,584
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
—
|
|
|
$
|
17,498
|
|
|
$
|
—
|
|
|
$
|
17,498
|
|
Commercial loan hedge
|
—
|
|
|
2,329
|
|
|
—
|
|
|
2,329
|
|
||||
Long term borrowing hedge
|
—
|
|
|
25,242
|
|
|
—
|
|
|
25,242
|
|
||||
Total financial liabilities
|
$
|
—
|
|
|
$
|
45,069
|
|
|
$
|
—
|
|
|
$
|
45,069
|
|
|
September 30, 2015
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
101,952
|
|
|
—
|
|
|
—
|
|
|
$
|
101,952
|
|
||
Obligations of U.S. government
|
—
|
|
|
482,464
|
|
|
—
|
|
|
482,464
|
|
||||
Obligations of states and political subdivisions
|
—
|
|
|
27,123
|
|
|
—
|
|
|
27,123
|
|
||||
Corporate debt securities
|
—
|
|
|
505,800
|
|
|
—
|
|
|
505,800
|
|
||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
||||||||
Agency pass-through certificates
|
—
|
|
|
1,160,518
|
|
|
—
|
|
|
1,160,518
|
|
||||
Other Commercial MBS
|
—
|
|
|
102,706
|
|
|
—
|
|
|
102,706
|
|
||||
Total available-for-sale securities
|
101,952
|
|
|
2,278,611
|
|
|
—
|
|
|
2,380,563
|
|
||||
Interest rate contracts
|
—
|
|
|
11,879
|
|
|
—
|
|
|
11,879
|
|
||||
Total financial assets
|
$
|
101,952
|
|
|
$
|
2,290,490
|
|
|
$
|
—
|
|
|
$
|
2,392,442
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
—
|
|
|
$
|
11,879
|
|
|
$
|
—
|
|
|
$
|
11,879
|
|
Commercial loan hedge
|
—
|
|
|
966
|
|
|
—
|
|
|
966
|
|
||||
Long term borrowing hedge
|
—
|
|
|
14,555
|
|
|
—
|
|
|
14,555
|
|
||||
Total financial liabilities
|
$
|
—
|
|
|
$
|
27,400
|
|
|
$
|
—
|
|
|
$
|
27,400
|
|
|
March 31, 2016
|
|
Three Months Ended March 31, 2016
|
|
Six Months Ended March 31, 2016
|
||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Total Gains (Losses)
|
||||||||||||||
|
(In thousands)
|
|
|
||||||||||||||||||||
Impaired loans (1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,164
|
|
|
$
|
12,164
|
|
|
$
|
(1,389
|
)
|
|
$
|
(3,070
|
)
|
Real estate owned (2)
|
—
|
|
|
—
|
|
|
12,804
|
|
|
12,804
|
|
|
(577
|
)
|
|
(2,332
|
)
|
||||||
Balance at end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,968
|
|
|
$
|
24,968
|
|
|
$
|
(1,966
|
)
|
|
$
|
(5,402
|
)
|
|
March 31, 2015
|
|
Three Months Ended March 31, 2015
|
|
Six Months Ended March 31, 2015
|
||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Total Gains (Losses)
|
||||||||||||||
|
(In thousands)
|
|
|
||||||||||||||||||||
Impaired loans (1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,478
|
|
|
$
|
3,478
|
|
|
$
|
(515
|
)
|
|
$
|
(580
|
)
|
Real estate owned (2)
|
—
|
|
|
—
|
|
|
48,255
|
|
|
48,255
|
|
|
2,533
|
|
|
10,769
|
|
||||||
Balance at end of period
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51,733
|
|
|
$
|
51,733
|
|
|
$
|
2,018
|
|
|
$
|
10,189
|
|
(1)
|
The gains (losses) represent remeasurements of collateral-dependent loans.
|
(2)
|
The gains (losses) represent aggregate writedowns and charge-offs on REO.
|
•
|
The fair value of the collateral, which may take the form of real estate or personal property, is based on internal estimates, field observations, assessments provided by third-party appraisers and other valuation models. The Company performs or reaffirms valuations of collateral-dependent impaired loans at least annually. Adjustments are made if management believes that more recent information is available and relevant with respect to the fair value of the collateral.
|
•
|
The present value of the expected future cash flows of the loans is used for measurement of non collateral-dependent loans to test for impairment. The Company calculates the amount and timing of the future cash flows, the effective interest rate to be used to discount the cash flows and the basis for determination of the cash flows, including consideration of current economic and environmental factors, as well as other information relating to current or previous conditions.
|
|
|
|
|
March 31, 2016
|
|
September 30, 2015
|
||||||||||||
|
|
Level in Fair Value Hierarchy
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
|
Carrying
Amount
|
|
Estimated
Fair Value
|
||||||||
|
|
|
|
(In thousands)
|
||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
1
|
|
$
|
276,084
|
|
|
$
|
276,084
|
|
|
$
|
284,049
|
|
|
$
|
284,049
|
|
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
|
1
|
|
101,591
|
|
|
101,591
|
|
|
101,952
|
|
|
101,952
|
|
||||
Obligations of U.S. government
|
|
2
|
|
264,544
|
|
|
264,544
|
|
|
482,464
|
|
|
482,464
|
|
||||
Obligations of states and political subdivisions
|
|
2
|
|
27,335
|
|
|
27,335
|
|
|
27,123
|
|
|
27,123
|
|
||||
Corporate debt securities
|
|
2
|
|
506,269
|
|
|
506,269
|
|
|
505,800
|
|
|
505,800
|
|
||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
||||||||
Agency pass-through certificates
|
|
2
|
|
1,105,016
|
|
|
1,105,016
|
|
|
1,160,518
|
|
|
1,160,518
|
|
||||
Other commercial MBS
|
|
2
|
|
92,331
|
|
|
92,331
|
|
|
102,706
|
|
|
102,706
|
|
||||
Total available-for-sale securities
|
|
|
|
2,097,086
|
|
|
2,097,086
|
|
|
2,380,563
|
|
|
2,380,563
|
|
||||
Held-to-maturity securities
|
|
2
|
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
||||||||
Agency pass-through certificates
|
|
2
|
|
1,558,087
|
|
|
1,564,349
|
|
|
1,643,216
|
|
|
1,637,420
|
|
||||
Total held-to-maturity securities
|
|
|
|
1,558,087
|
|
|
1,564,349
|
|
|
1,643,216
|
|
|
1,637,420
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans receivable
|
|
3
|
|
9,545,322
|
|
|
10,059,040
|
|
|
9,170,634
|
|
|
9,667,750
|
|
||||
FDIC indemnification asset
|
|
3
|
|
13,480
|
|
|
12,803
|
|
|
16,275
|
|
|
15,522
|
|
||||
FHLB and FRB stock
|
|
2
|
|
113,187
|
|
|
113,187
|
|
|
107,198
|
|
|
107,198
|
|
||||
Other assets - interest rate contracts
|
|
2
|
|
17,498
|
|
|
17,498
|
|
|
11,879
|
|
|
11,879
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||
Customer accounts
|
|
2
|
|
10,543,384
|
|
|
9,671,338
|
|
|
10,631,703
|
|
|
10,004,290
|
|
||||
FHLB advances
|
|
2
|
|
1,980,000
|
|
|
2,086,109
|
|
|
1,830,000
|
|
|
1,938,384
|
|
||||
Other liabilities - interest rate contracts
|
|
2
|
|
17,498
|
|
|
17,498
|
|
|
11,879
|
|
|
11,879
|
|
||||
Other liabilities - commercial loan hedge
|
|
2
|
|
2,329
|
|
|
2,329
|
|
|
966
|
|
|
966
|
|
||||
Other liabilities - long term borrowing hedge
|
|
2
|
|
25,242
|
|
|
25,242
|
|
|
14,555
|
|
|
14,555
|
|
|
March 31, 2016
|
|||||||||||||||||
|
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
|
$
|
44,763
|
|
|
$
|
1,467
|
|
|
$
|
(257
|
)
|
|
$
|
45,973
|
|
|
2.72
|
%
|
5 to 10 years
|
50,399
|
|
|
—
|
|
|
(1,726
|
)
|
|
48,673
|
|
|
1.04
|
|
||||
Over 10 years
|
173,258
|
|
|
—
|
|
|
(3,361
|
)
|
|
169,897
|
|
|
1.06
|
|
||||
Equity Securities
|
|
|
|
|
|
|
|
|
|
|||||||||
Within 1 year
|
500
|
|
|
19
|
|
|
—
|
|
|
519
|
|
|
1.80
|
|
||||
1 to 5 years
|
99,922
|
|
|
1,150
|
|
|
—
|
|
|
101,072
|
|
|
1.90
|
|
||||
Corporate bonds due
|
|
|
|
|
|
|
|
|
|
|||||||||
Within 1 year
|
274,957
|
|
|
258
|
|
|
—
|
|
|
275,215
|
|
|
1.02
|
|
||||
1 to 5 years
|
91,505
|
|
|
355
|
|
|
(113
|
)
|
|
91,747
|
|
|
1.85
|
|
||||
5 to 10 years
|
89,953
|
|
|
1,167
|
|
|
(2,787
|
)
|
|
88,333
|
|
|
2.00
|
|
||||
Over 10 years
|
50,000
|
|
|
974
|
|
|
—
|
|
|
50,974
|
|
|
3.00
|
|
||||
Municipal bonds due
|
|
|
|
|
|
|
|
|
|
|||||||||
1 to 5 years
|
2,300
|
|
|
8
|
|
|
—
|
|
|
2,308
|
|
|
1.23
|
|
||||
5 to 10 years
|
1,319
|
|
|
34
|
|
|
—
|
|
|
1,353
|
|
|
2.05
|
|
||||
Over 10 years
|
20,372
|
|
|
3,302
|
|
|
—
|
|
|
23,674
|
|
|
6.45
|
|
||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|||||||||
Agency pass-through certificates
|
1,093,626
|
|
|
15,593
|
|
|
(4,202
|
)
|
|
1,105,017
|
|
|
2.58
|
|
||||
Other Commercial MBS
|
92,542
|
|
|
260
|
|
|
(471
|
)
|
|
92,331
|
|
|
1.73
|
|
||||
|
2,085,416
|
|
|
24,587
|
|
|
(12,917
|
)
|
|
2,097,086
|
|
|
2.13
|
|
||||
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|||||||||
Agency pass-through certificates
|
1,558,087
|
|
|
12,358
|
|
|
(6,096
|
)
|
|
1,564,349
|
|
|
3.19
|
|
||||
|
$
|
3,643,503
|
|
|
$
|
36,945
|
|
|
$
|
(19,013
|
)
|
|
$
|
3,661,435
|
|
|
2.58
|
%
|
|
September 30, 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
|
$
|
105,065
|
|
|
$
|
1,923
|
|
|
$
|
(274
|
)
|
|
$
|
106,714
|
|
|
1.74
|
%
|
5 to 10 years
|
119,071
|
|
|
35
|
|
|
(1,247
|
)
|
|
117,859
|
|
|
1.54
|
|
||||
Over 10 years
|
262,832
|
|
|
—
|
|
|
(4,941
|
)
|
|
257,891
|
|
|
1.23
|
|
||||
Equity Securities
|
|
|
|
|
|
|
|
|
|
|||||||||
Within 1 year
|
500
|
|
|
17
|
|
|
—
|
|
|
517
|
|
|
1.80
|
|
||||
1 to 5 years
|
99,922
|
|
|
1,513
|
|
|
—
|
|
|
101,435
|
|
|
1.90
|
|
||||
Corporate bonds due
|
|
|
|
|
|
|
|
|
|
|||||||||
Within 1 year
|
24,787
|
|
|
191
|
|
|
—
|
|
|
24,978
|
|
|
0.53
|
|
||||
1 to 5 years
|
311,435
|
|
|
1,190
|
|
|
(58
|
)
|
|
312,567
|
|
|
0.88
|
|
||||
5 to 10 years
|
100,000
|
|
|
876
|
|
|
(3,524
|
)
|
|
97,352
|
|
|
1.47
|
|
||||
Over 10 years
|
69,950
|
|
|
953
|
|
|
—
|
|
|
70,903
|
|
|
3.00
|
|
||||
Municipal bonds due
|
|
|
|
|
|
|
|
|
|
|||||||||
1 to 5 years
|
2,285
|
|
|
8
|
|
|
—
|
|
|
2,293
|
|
|
1.23
|
|
||||
5 to 10 years
|
1,303
|
|
|
7
|
|
|
—
|
|
|
1,310
|
|
|
2.05
|
|
||||
Over 10 years
|
20,382
|
|
|
3,138
|
|
|
—
|
|
|
23,520
|
|
|
6.45
|
|
||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|||||||||
Agency pass-through certificates
|
1,144,787
|
|
|
18,222
|
|
|
(2,491
|
)
|
|
1,160,518
|
|
|
2.48
|
|
||||
Other Commercial MBS
|
103,131
|
|
|
85
|
|
|
(510
|
)
|
|
102,706
|
|
|
1.51
|
|
||||
|
2,365,450
|
|
|
28,158
|
|
|
(13,045
|
)
|
|
2,380,563
|
|
|
1.97
|
|
||||
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|||||||||
Agency pass-through certificates
|
1,643,216
|
|
|
10,516
|
|
|
(16,312
|
)
|
|
1,637,420
|
|
|
3.19
|
|
||||
|
$
|
4,008,666
|
|
|
$
|
38,674
|
|
|
$
|
(29,357
|
)
|
|
$
|
4,017,983
|
|
|
2.46
|
%
|
March 31, 2016
|
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
|
$
|
(1,001
|
)
|
|
$
|
24,000
|
|
|
$
|
(1,899
|
)
|
|
$
|
33,101
|
|
|
$
|
(2,900
|
)
|
|
$
|
57,101
|
|
U.S. government and agency securities due
|
(3,136
|
)
|
|
138,259
|
|
|
(2,208
|
)
|
|
115,518
|
|
|
(5,344
|
)
|
|
253,777
|
|
||||||
Agency pass-through certificates
|
(1,475
|
)
|
|
308,151
|
|
|
(9,294
|
)
|
|
1,217,456
|
|
|
(10,769
|
)
|
|
1,525,607
|
|
||||||
|
$
|
(5,612
|
)
|
|
$
|
470,410
|
|
|
$
|
(13,401
|
)
|
|
$
|
1,366,075
|
|
|
$
|
(19,013
|
)
|
|
$
|
1,836,485
|
|
September 30, 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
|
$
|
(183
|
)
|
|
$
|
72,862
|
|
|
$
|
(3,399
|
)
|
|
$
|
46,601
|
|
|
$
|
(3,582
|
)
|
|
$
|
119,463
|
|
U.S. government and agency securities due
|
(5,010
|
)
|
|
336,243
|
|
|
(1,452
|
)
|
|
57,344
|
|
|
(6,462
|
)
|
|
393,587
|
|
||||||
Agency pass-through certificates
|
(1,036
|
)
|
|
169,541
|
|
|
(18,277
|
)
|
|
1,193,463
|
|
|
(19,313
|
)
|
|
1,363,004
|
|
||||||
|
$
|
(6,229
|
)
|
|
$
|
578,646
|
|
|
$
|
(23,128
|
)
|
|
$
|
1,297,408
|
|
|
$
|
(29,357
|
)
|
|
$
|
1,876,054
|
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||||||||||
|
|
March 31, 2016
|
|
September 30, 2015
|
|
March 31, 2016
|
|
September 30, 2015
|
||||||||||||||||
|
|
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
|
|
$
|
17,498
|
|
|
Other assets
|
|
$
|
11,879
|
|
|
Other liabilities
|
|
$
|
17,498
|
|
|
Other liabilities
|
|
$
|
11,879
|
|
Commercial loan hedge
|
|
Other assets
|
|
—
|
|
|
Other assets
|
|
—
|
|
|
Other liabilities
|
|
2,329
|
|
|
Other liabilities
|
|
966
|
|
||||
Long term borrowing hedge
|
|
Other assets
|
|
—
|
|
|
Other assets
|
|
—
|
|
|
Other liabilities
|
|
25,242
|
|
|
Other liabilities
|
|
14,555
|
|
||||
|
|
|
|
$
|
17,498
|
|
|
|
|
$
|
11,879
|
|
|
|
|
$
|
45,069
|
|
|
|
|
$
|
27,400
|
|
|
Three Months Ended March 31, 2016
|
|
Three Months Ended March 31, 2015
|
||||||||||||||||||
|
Average Balance
|
|
Interest
|
|
Average Rate
|
|
Average Balance
|
|
Interest
|
|
Average Rate
|
||||||||||
|
(In thousands)
|
|
(In thousands)
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans and covered loans
|
$
|
9,469,185
|
|
|
$
|
113,211
|
|
|
4.80
|
%
|
|
$
|
8,487,458
|
|
|
$
|
109,274
|
|
|
5.22
|
%
|
Mortgaged-backed securities
|
2,804,569
|
|
|
16,846
|
|
|
2.41
|
|
|
3,070,002
|
|
|
18,143
|
|
|
2.40
|
|
||||
Cash & Investments
|
1,065,800
|
|
|
3,983
|
|
|
1.50
|
|
|
1,688,076
|
|
|
4,814
|
|
|
1.16
|
|
||||
FHLB & FRB stock
|
112,662
|
|
|
1,023
|
|
|
3.64
|
|
|
154,342
|
|
|
399
|
|
|
1.05
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total interest-earning assets
|
13,452,216
|
|
|
135,063
|
|
|
4.03
|
%
|
|
13,399,878
|
|
|
132,630
|
|
|
4.01
|
%
|
||||
Other assets
|
1,189,428
|
|
|
|
|
|
|
1,150,996
|
|
|
|
|
|
||||||||
Total assets
|
$
|
14,641,644
|
|
|
|
|
|
|
$
|
14,550,874
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Customer accounts
|
$
|
10,558,835
|
|
|
$
|
13,071
|
|
|
0.50
|
%
|
|
$
|
10,659,570
|
|
|
$
|
12,574
|
|
|
0.48
|
%
|
FHLB advances
|
1,970,022
|
|
|
15,667
|
|
|
3.19
|
|
|
1,830,000
|
|
|
16,176
|
|
|
3.58
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total interest-bearing liabilities
|
12,528,857
|
|
|
28,738
|
|
|
0.92
|
%
|
|
12,489,570
|
|
|
28,750
|
|
|
0.93
|
%
|
||||
Other liabilities
|
151,697
|
|
|
|
|
|
|
114,628
|
|
|
|
|
|
||||||||
Total liabilities
|
12,680,554
|
|
|
|
|
|
|
12,604,198
|
|
|
|
|
|
||||||||
Stockholder's equity
|
1,961,090
|
|
|
|
|
|
|
1,946,676
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities and equity
|
$
|
14,641,644
|
|
|
|
|
|
|
$
|
14,550,874
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
|
|
$
|
106,325
|
|
|
|
|
|
|
$
|
103,880
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest margin
|
|
|
|
|
3.16
|
%
|
|
|
|
|
|
3.10
|
%
|
|
Actual
|
|
Minimum Capital
Adequacy Guidelines
|
|
Minimum Well-Capitalized Guidelines
|
||||||||||||||
|
Capital
|
|
Ratio
|
|
Capital
|
|
Ratio
|
|
Capital
|
|
Ratio
|
||||||||
|
(In thousands)
|
||||||||||||||||||
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Common Equity Tier I risk-based capital ratio:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
The Company
|
$
|
1,673,866
|
|
|
18.07
|
%
|
|
$
|
645,160
|
|
|
4.50
|
%
|
|
NA
|
|
|
NA
|
|
The Bank
|
1,664,415
|
|
|
17.97
|
%
|
|
645,130
|
|
|
4.50
|
%
|
|
931,855
|
|
|
6.50
|
%
|
||
Tier I risk-based capital ratio:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
The Company
|
1,673,866
|
|
|
18.07
|
%
|
|
555,829
|
|
|
6.00
|
%
|
|
NA
|
|
|
NA
|
|
||
The Bank
|
1,664,415
|
|
|
17.97
|
%
|
|
555,785
|
|
|
6.00
|
%
|
|
741,047
|
|
|
8.00
|
%
|
||
Total risk-based capital ratio:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
The Company
|
1,787,396
|
|
|
19.29
|
%
|
|
741,106
|
|
|
8.00
|
%
|
|
NA
|
|
|
NA
|
|
||
The Bank
|
1,777,945
|
|
|
19.19
|
%
|
|
741,047
|
|
|
8.00
|
%
|
|
926,309
|
|
|
10.00
|
%
|
||
Tier 1 Leverage ratio:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
The Company
|
1,673,866
|
|
|
11.68
|
%
|
|
573,476
|
|
|
4.00
|
%
|
|
NA
|
|
|
NA
|
|
||
The Bank
|
1,664,415
|
|
|
11.61
|
%
|
|
573,449
|
|
|
4.00
|
%
|
|
716,811
|
|
|
5.00
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Common Equity Tier 1 risk-based capital ratio:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
The Company
|
1,658,985
|
|
|
18.81
|
%
|
|
637,788
|
|
|
4.50
|
%
|
|
NA
|
|
|
NA
|
|
||
The Bank
|
1,652,569
|
|
|
18.73
|
%
|
|
637,810
|
|
|
4.50
|
%
|
|
921,281
|
|
|
6.50
|
%
|
||
Tier I risk-based capital ratio:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
The Company
|
1,658,985
|
|
|
18.81
|
%
|
|
529,051
|
|
|
6.00
|
%
|
|
NA
|
|
|
NA
|
|
||
The Bank
|
1,652,569
|
|
|
18.73
|
%
|
|
529,360
|
|
|
6.00
|
%
|
|
705,814
|
|
|
8.00
|
%
|
||
Total risk-based capital ratio:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
The Company
|
1,769,587
|
|
|
20.07
|
%
|
|
705,402
|
|
|
8.00
|
%
|
|
NA
|
|
|
NA
|
|
||
The Bank
|
1,763,171
|
|
|
19.98
|
%
|
|
705,814
|
|
|
8.00
|
%
|
|
882,267
|
|
|
10.00
|
%
|
||
Tier 1 Leverage ratio:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
The Company
|
1,658,985
|
|
|
11.71
|
%
|
|
566,923
|
|
|
4.00
|
%
|
|
NA
|
|
|
N/A
|
|
||
The Bank
|
1,652,569
|
|
|
11.66
|
%
|
|
566,942
|
|
|
4.00
|
%
|
|
708,678
|
|
|
5.00
|
%
|
|
March 31, 2016
|
|
September 30, 2015
|
|
Change
|
||||||||||||
|
(In thousands)
|
|
(In thousands)
|
|
$
|
%
|
|||||||||||
Non-Acquired loans
|
|
|
|
|
|
|
|
|
|||||||||
Single-family residential
|
$
|
5,618,954
|
|
54.5
|
%
|
|
$
|
5,651,845
|
|
57.6
|
%
|
|
$
|
(32,891
|
)
|
(0.6
|
)%
|
Construction
|
785,846
|
|
7.6
|
|
|
200,509
|
|
2.0
|
|
|
585,337
|
|
291.9
|
|
|||
Construction - custom
|
398,797
|
|
3.9
|
|
|
396,307
|
|
4.0
|
|
|
2,490
|
|
0.6
|
|
|||
Land - acquisition & development
|
101,605
|
|
1.0
|
|
|
94,208
|
|
1.0
|
|
|
7,397
|
|
7.9
|
|
|||
Land - consumer lot loans
|
100,856
|
|
1.0
|
|
|
103,989
|
|
1.1
|
|
|
(3,133
|
)
|
(3.0
|
)
|
|||
Multi-family
|
1,073,222
|
|
10.4
|
|
|
1,125,722
|
|
11.6
|
|
|
(52,500
|
)
|
(4.7
|
)
|
|||
Commercial real estate
|
833,570
|
|
8.1
|
|
|
986,270
|
|
10.0
|
|
|
(152,700
|
)
|
(15.5
|
)
|
|||
Commercial & industrial
|
805,272
|
|
7.8
|
|
|
612,836
|
|
6.2
|
|
|
192,436
|
|
31.4
|
|
|||
HELOC
|
130,459
|
|
1.3
|
|
|
127,646
|
|
1.3
|
|
|
2,813
|
|
2.2
|
|
|||
Consumer
|
164,672
|
|
1.6
|
|
|
194,655
|
|
2.0
|
|
|
(29,983
|
)
|
(15.4
|
)
|
|||
Total non-acquired loans
|
10,013,253
|
|
97.2
|
%
|
|
9,493,987
|
|
96.8
|
%
|
|
519,266
|
|
5.5
|
%
|
|||
Acquired loans
|
152,572
|
|
1.5
|
|
|
166,293
|
|
1.6
|
|
|
(13,721
|
)
|
(8.3
|
)
|
|||
Credit impaired acquired loans
|
106,637
|
|
1.0
|
|
|
87,081
|
|
0.9
|
|
|
19,556
|
|
22.5
|
|
|||
Covered loans
|
34,211
|
|
0.3
|
|
|
75,909
|
|
0.7
|
|
|
(41,698
|
)
|
(54.9
|
)
|
|||
Total gross loans
|
10,306,673
|
|
100
|
%
|
|
9,823,270
|
|
100
|
%
|
|
483,403
|
|
4.9
|
%
|
|||
Less:
|
|
|
|
|
|
|
|
|
|||||||||
Allowance for probable losses
|
109,919
|
|
|
|
106,829
|
|
|
|
3,090
|
|
2.9
|
%
|
|||||
Loans in process
|
591,667
|
|
|
|
476,796
|
|
|
|
114,871
|
|
24.1
|
|
|||||
Discount on acquired loans
|
21,120
|
|
|
|
30,095
|
|
|
|
(8,975
|
)
|
(29.8
|
)
|
|||||
Deferred net origination fees
|
38,645
|
|
|
|
38,916
|
|
|
|
(271
|
)
|
(0.7
|
)
|
|||||
Total loan contra accounts
|
761,351
|
|
|
|
652,636
|
|
|
|
108,715
|
|
16.7
|
|
|||||
Net Loans
|
$
|
9,545,322
|
|
|
|
$
|
9,170,634
|
|
|
|
$
|
374,688
|
|
4.1
|
%
|
|
March 31,
2016 |
|
September 30,
2015 |
||||||||||
|
(In thousands)
|
||||||||||||
Restructured loans:
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
$
|
233,544
|
|
|
86.4
|
%
|
|
$
|
259,460
|
|
|
85.8
|
%
|
Construction
|
—
|
|
|
—
|
|
|
4,989
|
|
|
1.6
|
|
||
Land - acquisition & development
|
1,632
|
|
|
0.6
|
|
|
2,486
|
|
|
0.8
|
|
||
Land - consumer lot loans
|
9,981
|
|
|
3.7
|
|
|
11,289
|
|
|
3.7
|
|
||
Multi - family
|
1,522
|
|
|
0.6
|
|
|
3,823
|
|
|
1.3
|
|
||
Commercial real estate
|
22,139
|
|
|
8.2
|
|
|
19,124
|
|
|
6.3
|
|
||
HELOC
|
1,396
|
|
|
0.5
|
|
|
1,443
|
|
|
0.5
|
|
||
Consumer
|
94
|
|
|
—
|
|
|
99
|
|
|
—
|
|
||
Total restructured loans (1)
|
$
|
270,308
|
|
|
100
|
%
|
|
$
|
302,713
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
||||||
Non-accrual loans:
|
|
|
|
|
|
|
|
||||||
Single-family residential
|
$
|
42,395
|
|
|
77.7
|
%
|
|
$
|
59,074
|
|
|
87.1
|
%
|
Construction
|
—
|
|
|
—
|
|
|
754
|
|
|
1.1
|
|
||
Construction - custom
|
67
|
|
|
0.1
|
|
|
732
|
|
|
1.1
|
|
||
Land - acquisition & development
|
477
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
||
Land - consumer lot loans
|
940
|
|
|
1.7
|
|
|
1,273
|
|
|
1.9
|
|
||
Multi-family
|
1,520
|
|
|
2.8
|
|
|
2,558
|
|
|
3.8
|
|
||
Commercial real estate
|
7,701
|
|
|
14.1
|
|
|
2,176
|
|
|
3.2
|
|
||
Commercial & industrial
|
596
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
||
HELOC
|
554
|
|
|
1.0
|
|
|
563
|
|
|
0.8
|
|
||
Consumer
|
309
|
|
|
0.6
|
|
|
680
|
|
|
1.0
|
|
||
Total non-accrual loans (2)
|
54,559
|
|
|
100
|
%
|
|
67,810
|
|
|
100
|
%
|
||
Real estate owned
|
38,770
|
|
|
|
|
60,767
|
|
|
|
||||
Total non-performing assets
|
$
|
93,329
|
|
|
|
|
$
|
128,577
|
|
|
|
||
Total non-performing assets and performing restructured loans as a percentage of total assets
|
2.39
|
%
|
|
|
|
2.96
|
%
|
|
|
||||
|
|
|
|
|
|
|
|
||||||
(1) Restructured loans were as follows:
|
|
|
|
|
|
|
|
||||||
Performing
|
$
|
257,600
|
|
|
95.3
|
%
|
|
$
|
291,416
|
|
|
96.3
|
%
|
Non-performing (included in non-accrual loans above)
|
12,708
|
|
|
4.7
|
|
|
11,297
|
|
|
3.7
|
|
||
|
$
|
270,308
|
|
|
100
|
%
|
|
$
|
302,713
|
|
|
100
|
%
|
(2)
|
For the
three months ended
March 31, 2016
, the Company recognized
$1,246,000
in interest income on cash payments received from borrowers on nonaccrual loans. The Company would have recognized interest income of
$658,000
for the same period had these loans performed according to their original contract terms. The recognized interest income may include more than
six
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
$140,517,000
of loans that were less than 90 days delinquent at
March 31, 2016
but which it had classified as substandard for one or more reasons. If these loans were deemed non-performing, the Company's ratio of total NPAs and performing restructured loans as a percent of total assets would have increased to
1.59%
at
March 31, 2016
.
|
|
March 31, 2016
|
|
September 30, 2015
|
||||||||||||||||
|
Amount
|
|
Loans to
Total Loans (1) |
|
Coverage
Ratio (2) |
|
Amount
|
|
Loans to
Total Loans (1) |
|
Coverage
Ratio (2) |
||||||||
|
(In thousands)
|
|
(In thousands)
|
||||||||||||||||
Single-family residential
|
$
|
41,828
|
|
|
59.4
|
%
|
|
0.8
|
%
|
|
$
|
47,347
|
|
|
62.5
|
%
|
|
0.8
|
%
|
Construction
|
15,726
|
|
|
4.2
|
|
|
4.0
|
|
|
6,680
|
|
|
1.4
|
|
|
5.1
|
|
||
Construction - custom
|
1,022
|
|
|
2.2
|
|
|
0.5
|
|
|
990
|
|
|
2.3
|
|
|
50.0
|
|
||
Land - acquisition & development
|
7,252
|
|
|
1.0
|
|
|
8.1
|
|
|
5,781
|
|
|
0.8
|
|
|
7.7
|
|
||
Land - consumer lot loans
|
2,466
|
|
|
1.0
|
|
|
2.7
|
|
|
2,946
|
|
|
1.1
|
|
|
2.8
|
|
||
Multi-family
|
6,784
|
|
|
11.4
|
|
|
0.6
|
|
|
5,304
|
|
|
11.8
|
|
|
0.5
|
|
||
Commercial real estate
|
7,783
|
|
|
8.8
|
|
|
1.0
|
|
|
8,960
|
|
|
9.4
|
|
|
1.0
|
|
||
Commercial & industrial
|
23,824
|
|
|
8.8
|
|
|
2.9
|
|
|
24,980
|
|
|
7.1
|
|
|
3.9
|
|
||
HELOC
|
828
|
|
|
1.4
|
|
|
0.6
|
|
|
902
|
|
|
1.4
|
|
|
0.7
|
|
||
Consumer
|
2,406
|
|
|
1.8
|
|
|
1.5
|
|
|
2,939
|
|
|
2.2
|
|
|
1.5
|
|
||
|
$
|
109,919
|
|
|
100
|
%
|
|
|
|
$
|
106,829
|
|
|
100
|
%
|
|
|
(1)
|
Represents the gross loan amount for each respective loan category as a % of total gross loans, excluding covered loans and acquired loans outstanding that are not subject to the allowance for loan loss.
|
(2)
|
Represents the allocated allowance for each respective loan category as a % of gross loans for that same category, excluding covered loans and acquired loans outstanding that are not subject to the allowance for loan loss.
|
|
March 31, 2016
|
|
September 30, 2015
|
||||||||||||||||
|
Deposit Account Balance
|
|
As a % of Total Deposits
|
|
Wtd. Avg.
Rate
|
|
Deposit Account Balance
|
|
As a % of Total Deposits
|
|
Wtd. Avg.
Rate
|
||||||||
|
(In thousands)
|
|
|
|
|
|
|
(In thousands)
|
|
|
|
|
|
||||||
Non-interest checking
|
$
|
1,019,401
|
|
|
9.7
|
%
|
|
—
|
%
|
|
$
|
976,250
|
|
|
9.2
|
%
|
|
—
|
%
|
Interest checking
|
1,606,071
|
|
|
15.2
|
|
|
0.10
|
|
|
1,579,516
|
|
|
14.9
|
|
|
0.06
|
|
||
Savings (passbook/statement)
|
779,814
|
|
|
7.4
|
|
|
0.10
|
|
|
700,794
|
|
|
6.6
|
|
|
0.10
|
|
||
Money market
|
2,470,958
|
|
|
23.4
|
|
|
0.14
|
|
|
2,564,318
|
|
|
24.1
|
|
|
0.13
|
|
||
Time deposits
|
4,667,140
|
|
|
44.3
|
|
|
1.01
|
|
|
4,810,825
|
|
|
45.2
|
|
|
0.95
|
|
||
Total
|
$
|
10,543,384
|
|
|
100
|
%
|
|
0.50
|
%
|
|
$
|
10,631,703
|
|
|
100
|
%
|
|
0.48
|
%
|
|
Comparison of Three Months Ended
3/31/16 and 3/31/15
|
|
Comparison of Six Months Ended
3/31/16 and 3/31/15
|
||||||||||||||||||||
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
|
(In thousands)
|
|
(In thousands)
|
||||||||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans receivable
|
$
|
12,873
|
|
|
$
|
(8,936
|
)
|
|
$
|
3,937
|
|
|
$
|
23,309
|
|
|
$
|
(14,802
|
)
|
|
$
|
8,507
|
|
Mortgaged-backed securities
|
(1,631
|
)
|
|
334
|
|
|
(1,297
|
)
|
|
(3,485
|
)
|
|
—
|
|
|
(3,485
|
)
|
||||||
Investments (1)
|
(2,286
|
)
|
|
2,079
|
|
|
(207
|
)
|
|
(4,794
|
)
|
|
4,045
|
|
|
(749
|
)
|
||||||
All interest-earning assets
|
8,956
|
|
|
(6,523
|
)
|
|
2,433
|
|
|
15,030
|
|
|
(10,757
|
)
|
|
4,273
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer accounts
|
(105
|
)
|
|
602
|
|
|
497
|
|
|
(230
|
)
|
|
—
|
|
|
(230
|
)
|
||||||
FHLB advances and other borrowings
|
1,103
|
|
|
(1,612
|
)
|
|
(509
|
)
|
|
413
|
|
|
(3,040
|
)
|
|
(2,627
|
)
|
||||||
All interest-bearing liabilities
|
998
|
|
|
(1,010
|
)
|
|
(12
|
)
|
|
183
|
|
|
(3,040
|
)
|
|
(2,857
|
)
|
||||||
Change in net interest income
|
$
|
7,958
|
|
|
$
|
(5,513
|
)
|
|
$
|
2,445
|
|
|
$
|
14,847
|
|
|
$
|
(7,717
|
)
|
|
$
|
7,130
|
|
(1)
|
Includes interest on cash equivalents and dividends on FHLB & FRB stock
|
Period
|
Total Number of
Shares Purchased
|
|
Average Price
Paid Per Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plan (1)
|
|
Maximum
Number of Shares
That May Yet Be
Purchased Under
the Plan at the
End of the Period
|
|||||
January 1, 2016 to January 31, 2016
|
1,335,867
|
|
|
$
|
20.98
|
|
|
1,335,867
|
|
|
2,442,281
|
|
February 1, 2016 to February 29, 2016
|
210,000
|
|
|
21.07
|
|
|
210,000
|
|
|
2,232,281
|
|
|
March 1, 2016 to March 31, 2016
|
93,575
|
|
|
22.05
|
|
|
93,575
|
|
|
2,138,706
|
|
|
Total
|
1,639,442
|
|
|
$
|
21.05
|
|
|
1,639,442
|
|
|
2,138,706
|
|
(1)
|
The Company's stock repurchase program was publicly announced by its Board of Directors on February 3, 1995 and has no expiration date. Under this ongoing program, a total of
46,956,264
shares have been authorized for repurchase. This includes the authorization of an additional
5,000,000
shares that may be repurchased under Washington Federal's share repurchase program that was announced in May 2015.
|
(a)
|
|
Exhibits
|
||
|
||||
|
|
3.1
|
|
Restated Articles of Incorporation of the Company
|
|
||||
|
|
3.2
|
|
Amended and Restated Bylaws of the Company, incorporated by reference from the Registrant’s Form 8-K filed on January 22, 2016
|
|
||||
|
|
31.1
|
|
Section 302 Certification by the Chief Executive Officer
|
|
||||
|
|
31.2
|
|
Section 302 Certification by the Interim Chief Financial Officer
|
|
||||
|
|
32
|
|
Section 906 Certification by the Chief Executive Officer and the Interim Chief Financial Officer
|
|
||||
|
|
101
|
|
Financial Statements from the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2016 formatted in XBRL
|
May 3, 2016
|
/
S
/ R
OY
M. W
HITEHEAD
|
|
ROY M. WHITEHEAD
Chairman, President and Chief Executive Officer
|
|
|
May 3, 2016
|
/
S
/ B
RENT
J. B
EARDALL
|
|
BRENT J. BEARDALL
Executive Vice President and Interim Chief Financial Officer
|
A.
|
Classification and Term.
The Board of Directors, other than those
|
B.
|
Voting for Directors.
In any election of directors, the candidates
|
C.
|
Removal.
Subject to the rights of any class or series of stock having
|
(a)
|
The Corporation shall indemnify and hold harmless each individual who is or
|
(b)
|
The Corporation may purchase and maintain insurance on behalf of an
|
(c)
|
If, after the effective date of this Article 8, the Act is amended to authorize
|
(d)
|
To the extent permitted by law, the rights to indemnification and advance of
|
(e)
|
If any provision of this Article 8 or any application thereof shall be invalid,
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Washington Federal, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
May 3, 2016
|
|
/s/ Roy M. Whitehead
|
|
|
|
ROY M. WHITEHEAD
Chairman, President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Washington Federal, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
May 3, 2016
|
|
/s/ Brent J. Beardall
|
|
|
|
BRENT J. BEARDALL
|
|
|
|
Executive Vice President and Interim Chief Financial Officer
|
(a)
|
the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(b)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
Washington Federal, Inc.
|
|
(Company)
|
|
|
|
/s/ Roy M. Whitehead
|
|
ROY M. WHITEHEAD
|
|
Chairman, President and Chief Executive Officer
|
|
|
|
/s/ Brent J. Beardall
|
|
BRENT J. BEARDALL
|
|
Executive Vice President and Interim Chief Financial Officer
|