v2.4.0.6
Document and Entity Information (USD $)
 12 Months Ended
Sep. 30, 2012
Nov. 16, 2012
Mar. 31, 2012
Document and Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Sep. 30, 2012    
Document Fiscal Year Focus 2012    
Document Fiscal Period Focus FY    
Trading Symbol WAFD    
Entity Registrant Name WASHINGTON FEDERAL INC    
Entity Central Index Key 0000936528    
Current Fiscal Year End Date --09-30    
Entity Filer Category Large Accelerated Filer    
Entity Common Stock, Shares Outstanding   106,227,990  
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Public Float     $ 1,769,037,232
v2.4.0.6
Consolidated Statements of Financial Condition (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
ASSETS    
Cash and cash equivalents $ 751,430 $ 816,002
Available-for-sale securities, including encumbered securities of $0 and $965,927, at fair value 1,781,705 3,255,144
Held-to-maturity securities, including encumbered securities of $0 and $45,086, at amortized cost 1,191,487 47,036
Loans receivable, net 7,451,998 7,935,877
Covered loans, net 288,376 382,183
Interest receivable 46,857 52,332
Premises and equipment, net 178,845 166,593
Real estate held for sale 99,478 159,829
Covered real estate held for sale 29,549 56,383
FDIC indemnification asset 87,571 101,634
FHLB stock 149,840 151,755
Intangible assets, including goodwill of $251,653 256,076 256,271
Federal and state income taxes, net 22,513 0
Other assets 137,219 59,710
Assets 12,472,944 13,440,749
Customer accounts    
Transaction deposit accounts 2,946,453 2,662,188
Time deposit accounts 5,630,165 6,003,715
Savings and Demand Accounts and Repurchase Agreements with Customers 8,576,618 8,665,903
FHLB advances 1,880,000 1,962,066
Other borrowings 0 800,000
Advance payments by borrowers for taxes and insurance 40,041 39,548
Federal and State income taxes, including net deferred assets (liabilities) of $8,449 and $(17,075) 0 1,535
Accrued expenses and other liabilities 76,533 65,164
Liabilities 10,573,192 11,534,216
Stockholders’ equity    
Common stock, $1.00 par value, 300,000,000 shares authorized;129,950,223 and 129,853,534 shares issued; 106,177,615 and 108,976,410 shares outstanding 129,950 129,854
Paid-in capital 1,586,295 1,582,843
Accumulated other comprehensive income, net of taxes 13,306 85,789
Treasury stock, at cost; 23,772,608 and 20,877,124 shares (310,579) (268,665)
Retained earnings 480,780 376,712
Stockholders' Equity 1,899,752 1,906,533
Liabilities and Equity $ 12,472,944 $ 13,440,749
v2.4.0.6
Consolidated Statements of Financial Condition (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Available-for-sale securities, encumbered securities $ 0 $ 965,927
Held-to-maturity securities, encumbered securities 0 45,086
Intangible assets, goodwill 251,653 251,653
Federal and state income taxes, deferred assets (liabilities) $ 8,449 $ (17,075)
Common stock, par value (in dollars per share) $ 1 $ 1
Common stock, shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares issued (in shares) 129,950,223 129,853,534
Common stock, shares outstanding (in shares) 106,177,615 108,976,410
Treasury stock, shares (in shares) 23,772,608 20,877,124
v2.4.0.6
Consolidated Statements of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
INTEREST INCOME      
Loans $ 484,833 $ 522,230 $ 561,069
Mortgage-backed securities 96,142 108,207 91,775
Investment securities and cash equivalents 9,296 14,198 10,716
Interest and dividend income, operating 590,271 644,635 663,560
INTEREST EXPENSE      
Customer accounts 86,939 115,835 146,360
FHLB advances and other borrowings 106,310 111,861 122,741
Interest Expense 193,249 227,696 269,101
Net interest income 397,022 416,939 394,459
Provision for loan losses 44,955 93,104 179,909
Net interest income after provision for loan losses 352,067 323,835 214,550
OTHER INCOME      
Gain on FDIC-assisted transaction 0 0 85,608
Prepayment penalty on FHLB advance (95,565) 0 (8,150)
Gain on sale of investments 95,234 8,147 22,409
Other 16,848 17,786 20,563
Noninterest Income 16,517 25,933 120,430
OTHER EXPENSE      
Compensation and benefits 77,628 72,034 69,879
Amortization of intangibles 1,509 1,447 2,140
Occupancy 15,971 14,480 13,933
FDIC insurance premiums 16,093 20,582 18,626
Other 34,631 29,496 28,830
Deferred loan origination costs (2,978) (1,980) (1,928)
Noninterest Expense 142,854 136,059 131,480
Loss on real estate acquired through foreclosure, net (9,819) (40,050) (80,475)
Income before income taxes 215,911 173,659 123,025
Income taxes      
Current 61,138 88,373 (19,890)
Deferred 16,590 (25,855) 24,262
Income tax provision (benefit) 77,728 62,518 4,372
NET INCOME 138,183 111,141 118,653
Preferred dividends accrued 0 0 0
Net income available to common shareholders $ 138,183 $ 111,141 $ 118,653
PER SHARE DATA      
Basic earnings (in dollars per share) $ 1.29 $ 1.00 $ 1.06
Diluted earnings (in dollars per share) $ 1.29 $ 1.00 $ 1.05
Cash dividends per share (in dollars per share) $ 0.32 $ 0.24 $ 0.20
Basic weighted average number of shares outstanding 107,108,703 111,383,877 112,438,059
Diluted weighted average number of shares outstanding, including dilutive stock options 107,149,240 111,460,106 112,745,261
v2.4.0.6
Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Net income $ 138,183 $ 111,141 $ 118,653
Other comprehensive income (loss) net of tax:      
Net unrealized gains (losses) on available-for-sale securities (209,832) 48,939 (29,918)
Related tax benefit (expense) 77,113 (17,985) 10,995
Reclassification adjustment of net gains from sale of available-for-sale securities included in net income 95,234 8,147 17,009
Related tax benefit (expense) (34,998) (2,994) (2,835)
Other comprehensive income (loss) (72,483) 36,107 (4,749)
Comprehensive income $ 65,700 $ 147,248 $ 113,904
v2.4.0.6
Consolidated Statements of Stockholders' Equity (USD $)
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Treasury Stock [Member]
Balance, Beginning of period at Sep. 30, 2009 $ 1,745,485,000 $ 129,320,000 $ 1,574,555,000 $ 196,164,000 $ 54,431,000 $ (208,985,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 118,653,000     118,653,000    
Other comprehensive income adjustment, net of tax of $-2,760, $20,979, $-42,115: (4,749,000)       (4,749,000)  
Dividends paid on common stock (22,450,000)     (22,450,000)    
Compensation expense related to common stock 1,213,000   1,213,000      
Proceeds from excercise of common stock options 1,759,000 145,000 1,614,000      
Tax benefit related to exercise of common stock options 181,000   181,000      
Restricted stock 1,055,000 91,000 964,000      
Treasury stock 0          
Balance, End of period at Sep. 30, 2010 1,841,147,000 129,556,000 1,578,527,000 292,367,000 49,682,000 (208,985,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 111,141,000     111,141,000    
Other comprehensive income adjustment, net of tax of $-2,760, $20,979, $-42,115: 36,107,000       36,107,000  
Dividends paid on common stock (26,796,000)     (26,796,000)    
Compensation expense related to common stock 1,087,000   1,087,000      
Proceeds from excercise of common stock options 1,631,000 104,000 1,527,000      
Tax benefit related to exercise of common stock options 55,000   55,000      
Restricted stock 1,841,000 194,000 1,647,000      
Treasury stock (59,680,000)         (59,680,000)
Balance, End of period at Sep. 30, 2011 1,906,533,000 129,854,000 1,582,843,000 376,712,000 85,789,000 (268,665,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 138,183,000     138,183,000    
Other comprehensive income adjustment, net of tax of $-2,760, $20,979, $-42,115: (72,483,000)       (72,483,000)  
Dividends paid on common stock (34,115,000)     (34,115,000)    
Compensation expense related to common stock 848,000   848,000      
Proceeds from excercise of common stock options 357,000 29,000 328,000      
Tax benefit related to exercise of common stock options 0   0      
Restricted stock 2,343,000 67,000 2,276,000      
Treasury stock (41,914,000)         (41,914,000)
Balance, End of period at Sep. 30, 2012 $ 1,899,752,000 $ 129,950,000 $ 1,586,295,000 $ 480,780,000 $ 13,306,000 $ (310,579,000)
v2.4.0.6
Consolidated Statements of Stockholders' Equity (Parentheticals) (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Other comprehensive income, tax $ (42,115) $ 20,979 $ (2,760)
v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income $ 138,183 $ 111,141 $ 118,653
Adjustments to reconcile net income to net cash provided by operating activities:      
Amortization (accretion) of fees, discounts, premiums and intangible assets, net 31,046 20,663 21,624
Cash received from FDIC under loss share 3,456 32,828 92,551
Depreciation 7,587 6,667 5,766
Stock option compensation expense 848 1,087 1,213
Provision for loan losses 44,955 93,104 179,909
(Gain) loss on investment securities and real estate held for sale, net (100,952) 23,315 58,066
Loss on extinguishment of debt 95,565 0 0
Gain on FDIC-assisted transaction 0 0 (85,608)
Decrease (increase) in accrued interest receivable 5,726 (3,312) 7,999
Increase in FDIC loss share receivable (3,284) (10,470) 0
Increase (decrease) in income taxes payable 18,066 (11,351) (23,408)
Decrease (increase) in other assets (74,889) 21,600 (51,641)
Increase (decrease) in accrued expenses and other liabilities 8,649 (23,575) (74,243)
Net cash provided by (used in) operating activities 174,956 261,697 250,881
CASH FLOWS FROM INVESTING ACTIVITIES      
Net principal collections (loan originations) 544,240 400,054 281,826
FHLB stock redeemed 1,830 0 0
Available-for-sale securities purchased (2,442,184) (1,585,945) (1,774,343)
Principal payments and maturities of available-for-sale securities 1,608,603 727,379 1,052,545
Available-for-sale securities sold 2,257,913 131,361 496,024
Held-to-maturity securities purchased (1,167,121) 0 0
Principal payments and maturities of held-to-maturity securities 23,082 33,874 23,128
Net cash received from acquisition 50,576 0 111,684
Proceeds from sales of real estate held for sale 175,832 110,400 129,447
Covered REO purchased 33,579 29,383 0
Increase in intangible assets (1,061) 0 0
Premises and equipment purchased and REO improvements (30,949) (10,539) (13,027)
Net cash provided (used) by investing activities 1,054,340 (164,033) 307,284
CASH FLOWS FROM FINANCING ACTIVITIES      
Net increase (decrease) in customer accounts (225,068) (186,637) 190,702
Proceeds from long-term borrowings 0 200,000 200,000
Repayments of long-term borrowings (995,306) (100,000) (539,034)
Proceeds from exercise of common stock options and related tax benefit 357 1,686 1,940
Dividends paid on common stock (32,430) (25,697) (22,450)
Treasury stock purchased, net (41,914) (59,680) 0
Decrease in advance payments by borrowers for taxes and insurance 493 44 911
Net cash used by financing activities (1,293,868) (170,284) (167,931)
Increase (decrease) in cash and cash equivalents (64,572) (72,620) 390,234
Cash and cash equivalents at beginning of period 816,002 888,622 498,388
Cash and cash equivalents at ending of period 751,430 816,002 888,622
Non-cash investing activities      
Non-covered real estate acquired through foreclosure 160,971 112,693 222,057
Covered real estate acquired through foreclosure 15,905 54,638 34,536
Cash paid during the period for      
Interest 199,735 228,444 269,478
Income taxes 59,596 73,798 27,503
The following summarizes the non-cash activities related to acquisitions      
Fair value of assets and intangible acquired, including goodwill 124,594 0 1,091,629
Fair value of liabilities assumed (154,493) 0 (1,047,981)
Net fair value of assets (liabilities) $ (29,899) $ 0 $ 43,648
v2.4.0.6
Summary of Significant Accounting Policies
 12 Months Ended
Sep. 30, 2012
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of consolidation. The consolidated financial statements include the accounts of Washington Federal, Inc. (Company or Washington Federal) and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated.
Description of business. Washington Federal is a unitary thrift holding company. The Company's principal operating subsidiary is Washington Federal (Bank). The Bank is principally engaged in the business of attracting deposits from the general public and investing these funds, together with borrowings and other funds, in one-to-four family residential real estate loans, multi-family real estate loans and commercial loans. The Bank conducts its activities through a network of 166 offices located in Washington, Oregon, Idaho, Utah, Arizona, Nevada, New Mexico, and Texas.
The Company's fiscal year end is September 30th. All references to 2012, 2011 and 2010 represent balances as of September 30, 2012, September 30, 2011 and September 30, 2010, or activity for the fiscal years then ended. References to net income in this document refer to net income available to common shareholders.

Acquisitions. Western National Bank. Effective December 16, 2011, Washington Federal, acquired certain assets and liabilities, including most of the loans and deposits, of Western National Bank, headquartered in Phoenix, Arizona (“WNB”) from the Federal Deposit Insurance Corporation (“FDIC”) in an FDIC-assisted transaction. Under the terms of the Purchase and Assumption Agreement, the Company and the FDIC agreed to a discount of $53 million on net assets and no loss sharing provision or premium on deposits. WNB operated three full-service offices in Arizona. The Company acquired certain assets with a book value of $177 million, including $143 million in loans and $7 million in foreclosed real estate, and selected liabilities with a book value of $153 million, including $136 million in deposits. Pursuant to the purchase and assumption agreement with the FDIC, the Company received a cash payment from the FDIC for $30 million. The operating results of the Company include the operating results produced by the acquired assets and assumed liabilities for the period December 16, 2011 to September 30, 2012.

Charter Bank. Effective October 14, 2011, the Company acquired six branch locations, four in Albuquerque, New Mexico, and two in Santa Fe, New Mexico, from Charter Bank. $254,821,000 of deposits were acquired for a premium of $1,061,000.

Horizon Bank. Effective January 8, 2010, the Bank acquired certain assets and liabilities, including most of the loans and deposits, of Horizon Bank, headquartered in Bellingham, Washington (“Horizon”) from the Federal Deposit Insurance Corporation (“FDIC”), as receiver for Horizon. The Bank acquired certain assets with a book value of $1.19 billion, including $968 million in loans and $32 million in foreclosed real estate, and selected liabilities with a book value of one billion thirty million, including $820 million in deposits. The loans and foreclosed real estate purchased are covered by two loss share agreements between the FDIC and the Bank (one for single family loans and the other for all other loans and foreclosed real estate), which affords the Bank significant loss protection. Under the loss share agreements, the FDIC will cover 80% of covered loan and foreclosed real estate losses up to $536 million and 95% of losses in excess of that amount. The term for loss sharing on residential real estate loans is 10 years, while the term for loss sharing on non-residential real estate loans is 5 years with respect to losses and 8 years with respect to loss recoveries. The losses reimbursable by the FDIC are based on the book value of the relevant loan as determined by the FDIC at the date of the transaction. New loans made after that date are not covered by the loss share agreements. Loans that were classified as non-performing loans by Horizon are no longer classified as non-performing because, at acquisition, the carrying value of these loans was adjusted to reflect fair value and are covered under the FDIC loss sharing agreements. Management believes that the new book value reflects an amount that will ultimately be collected.

Cash and cash equivalents. Cash and cash equivalents include cash on hand, amounts due from banks, overnight investments and repurchase agreements with an initial maturity of three months or less.
Investments and mortgage-backed securities. The Company accounts for investments and mortgage-backed securities in two categories: held-to-maturity and available-for-sale.
Held-to-maturity securities - Securities classified as held-to-maturity are accounted for at amortized cost, but the Company must have both the positive intent and the ability to hold those securities to maturity. There are very limited circumstances under which securities in the held-to-maturity category can be sold without jeopardizing the cost basis of accounting for the remainder of the securities in this category.
Available-for-sale securities - Securities not classified as held-to-maturity are considered to be available-for-sale. Gains and losses realized on the sale of these securities are accounted for based on the specific identification method. Unrealized gains and losses for available-for-sale securities are excluded from earnings and reported as a net amount in the accumulated other comprehensive income component of stockholders' equity.
Management evaluates debt and equity securities for other than temporary impairment on a quarterly basis based on the securities' current credit quality, interest rates, term to maturity and management's intent and ability to hold the securities until the net book value is recovered. Any other than temporary declines in fair value are recognized in the statements of operations.
Premiums and discounts on investments are deferred and recognized over the life of the asset, using the effective interest method.
Realized gains and losses on securities sold as well as other than temporary impairment charges, are shown on the Consolidated Statements of Operations under the Other Income (Loss) heading.
Loans receivable - When a borrower fails to make a required payment on a loan, the Company attempts to cure the deficiency by contacting the borrower. Contact is made after a payment is 30 days past its grace period. In most cases, deficiencies are cured promptly. If the delinquency is not cured within 90 days, the Company may institute appropriate action to foreclose on the property. If foreclosed, the property is sold at a public sale and may be purchased by the Company.
The Company will consider modifying the interest rates and terms of a loan if it determines that a modification is a better alternative to foreclosure.
Loans are placed on nonaccrual status when, in the judgment of management, the probability of collection of interest is deemed to be insufficient to warrant further accrual. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. The Company does not accrue interest on loans 90 days or more past due. If payment is made on a loan so that the loan becomes less than 90 days past due, and the Company expects full collection of principal and interest, the loan is returned to full accrual status. Any interest ultimately collected is credited to income in the period of recovery. A loan is charged-off when the loss is estimable and it is confirmed that the borrower will not be able to meet contractual obligations.
The Company maintains an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the probable and estimable losses inherent in the loan portfolio. The Company's methodology for assessing the appropriateness of the allowance consists of two components, which include the general allowance and specific allowances.
The general loan loss allowance is established by applying a loss percentage factor to the different loan types. Management believes loan types are the most relevant factor to group loans for the allowance calculation as the risk characteristics in these groups are similar. The loss percentage factor is made up of two parts - the historical loss factor (“HLF”) and the qualitative loss factor (“QLF”). The HLF takes into account historical charge-offs, while the QLF is determined by loan type and allows management to augment reserve levels to reflect the current environment and portfolio performance trends including recent charge-off trends. Allowances are provided based on management's continuing evaluation of the pertinent factors underlying the quality of the loan portfolio, including changes in the size and composition of the loan portfolio, actual loan loss experience, current economic conditions, collateral values, geographic concentrations, seasoning of the loan portfolio, specific industry conditions, and the duration of the current business cycle. The recovery of the carrying value of loans is susceptible to future market conditions beyond the Company's control, which may result in losses or recoveries differing from those provided.
Specific allowances are established for loans which are individually evaluated, in cases where management has identified significant conditions or circumstances related to a loan that management believes indicate the probability that a loss has been incurred.
Impaired loans consist of loans receivable that are not expected to have their principal and interest repaid in accordance with their contractual terms. Collateral dependent impaired loans are measured using the fair value of the collateral, less selling costs. Non-collateral dependent loans are measured at the present value of expected future cash flows.
The Company receives fees for originating loans in addition to various fees and charges related to existing loans, which may include prepayment charges, late charges and assumption fees. Deferred loan fees and costs are recognized over the life of the loans using the effective interest method.
Covered loans. Covered loans are the loans acquired from Horizon in 2010 and recorded at their estimated fair market value. Loans that were classified as non-performing loans by Horizon are no longer classified as non-performing because, at acquisition, the carrying value of these loans was adjusted to reflect fair value and are covered under the FDIC loss sharing agreements. Management believes that the new book value reflects an amount that will ultimately be collected.
Acquired credit impaired loans. Loans are accounted for under ASC 310-30 when there is evidence of credit deterioration since origination and for which it is probable, at acquisition, that the Company would be unable to collect all contractually required payments. Interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, was recognized on all acquired loans.
Covered real estate held for sale. Covered real estate held for sale represents the foreclosed properties that were originally Horizon loans. Covered real estate held for sale is carried at the estimated fair market value of the repossessed real estate. The covered loans and covered real estate held for sale are collectively referred to as “covered assets”.
FDIC indemnification asset. FDIC indemnification asset is the receivable recorded from due to guarantee provided by the FDIC on the covered assets.
Premises and equipment. Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the respective assets. Expenditures are capitalized for betterments and major renewals. Charges for ordinary maintenance and repairs are expensed to operations as incurred.
Real estate held for sale. Properties acquired in settlement of loans or acquired for development are recorded at the lower of cost or fair value less selling costs. Subsequent declines in valuation are recorded as additional expense in gain (loss) on real estate acquired through foreclosure line item.
Intangible assets. Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. The core deposit intangibles and non-compete agreement intangible are acquired assets that lack physical substance but can be distinguished from goodwill. Goodwill is evaluated for impairment on an annual basis. Other intangible assets are amortized over their estimated lives and are subject to impairment testing when events or circumstances change. If circumstances indicate that the carrying value of the assets may not be recoverable, an impairment charge could be recorded. No impairment of intangible assets has ever been identified. The Company amortizes the core deposit intangibles on a straight line basis over their estimated lives of between 5 and 8 years.
The balance of the Company's intangible assets was as follows, which includes the additional goodwill discussed above:

 
Goodwill
 
Servicing Rights Intangible
 
Core Deposit Intangible
 
Total
 
(In thousands)
 
 
 
 
 
 
 
 
Balance at September 30, 2010
$
251,653

 
$
1,775

 
$
4,290

 
$
257,718

Additions
—

 
—

 
—

 
—

Amortization
—

 
(529
)
 
(918
)
 
(1,447
)
Balance at September 30, 2011
251,653

 
1,246

 
3,372

 
256,271

Additions
—

 
—

 
2,022

 
2,022

Amortization
—

 
(960
)
 
(1,257
)
 
(2,217
)
Balance at September 30, 2012
$
251,653

 
$
286

 
$
4,137

 
$
256,076


The table below presents the estimated core deposit intangible asset amortization expense for the next five years:
Year End
 
Expense
 
 
(In thousands)
2013
 
$
1,314

2014
 
1,314

2015
 
1,014

2016
 
396

2017
 
99


Deferred fees and discounts on loans. Loan discounts and loan fees are deferred and recognized over the life of the loans using the effective interest method.
Accounting for stock-based compensation. The Company records an expense for the estimated fair value of equity awards over the vesting period. See Note L for additional information. Stock options that were not dilutive but were outstanding as of September 30, 2012, 2011 and 2010 were 934,880, 2,190,123 and 1,941,633, respectively.
Use of estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates reported in the financial statements include the allowance for loan losses, intangible assets, deferred taxes and contingent liabilities. Actual results could differ from these estimates.

New accounting pronouncements. In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2011-11, Balance Sheet (Topic 210) – Disclosures about Offsetting Assets and Liabilities. The amendments in this ASU will enhance disclosures required by U.S. GAAP by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with current U.S. GAAP or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with current U.S. GAAP. The guidance in this ASU is effective for the first interim or annual period beginning on or after January 1, 2013 and should be applied retrospectively. This new guidance is not expected to have a material impact on the Company's consolidated financial statements.

In December 2011, the FASB issued ASU 2011-12, Comprehensive Income (Topic 220) – Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. Under the amendments in ASU 2011-05, entities are required to present reclassification adjustments and the effect of those reclassification adjustments on the face of the financial statements where net income is presented, by component of net income, and on the face of the financial statements where other comprehensive income is presented, by component of other comprehensive income. In addition, the amendments in ASU 2011-05 require that reclassification adjustments be presented in interim financial periods. The amendments in ASU 2011-12 supersede and defer changes to those paragraphs in ASU 2011-05 that pertain to how, when and where reclassification adjustments are presented while the FASB redeliberates the presentation of reclassification adjustments. All other requirements of ASU 2011-05 are not affected by ASU 2011-12. The Company adopted this ASU and the guidance had no impact on the Company's financial condition and results of operations.

In July 2012, the FASB issued ASU 2012-02, Intangibles - Goodwill and Other (Topic 350) – Testing Indefinite-Lived Intangible Assets for Impairment. The objective of this ASU is to reduce the cost and complexity of performing an impairment test for indefinite-lived intangible assets by simplifying how an entity tests those assets for impairment and to improve consistency in impairment testing guidance among long-lived asset categories. This ASU permits an entity first to assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles - Goodwill and Other - General Intangibles Other than Goodwill. The more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. Previous guidance in Subtopic 350-30 required an entity to test indefinite-lived intangible assets for impairment, on at least an annual basis, by comparing the fair value of the asset with its carrying amount. If the fair value of the asset is less than its carrying amount, an entity should recognize an impairment loss in the amount of the difference. In accordance with the amendments in this ASU, an entity will have an option not to calculate annually the fair value of an indefinite-lived intangible asset if the entity determines that it is not more likely than not that the asset is impaired. Permitting an entity to assess qualitative factors when testing indefinite-lived intangible assets for impairment results in guidance that is similar to the goodwill impairment testing guidance in Update 2011-08. The Company early adopted this ASU and the guidance had no impact on the Company's financial condition and results of operations.

In October 2012, the FASB issued ASU 2012-06, Business Combinations. This ASU addresses the diversity in practice about how to interpret the terms on the same basis and contractual limitations when subsequently measuring an indemnification asset recognized in a government-assisted (Federal Deposit Insurance Corporation or National Credit Union Administration) acquisition of a financial institution that includes a loss-sharing agreement. The guidance in this ASU is effective for the first interim or annual period beginning on or after December 15, 2012 and should be applied prospectively. The Company is evaluating the impact this ASU will have on its consolidated financial condition and results of operations.
Business segments. As the Company manages its business and operations on a consolidated basis, management has determined that there is one reportable business segment.
Reclassifications. Certain reclassifications have been made to the financial statements for years prior to September 30, 2012 to conform to current year classifications.
v2.4.0.6
Investment Securities
 12 Months Ended
Sep. 30, 2012
Investment Securities [Abstract]  
Investment Securities
    INVESTMENT SECURITIES
 
September 30,
2012
 
Amortized
Cost
 
Gross Unrealized    
 
Fair
Value
 
Yield
Gains
 
Losses
 
 
(In thousands)
Available-for-sale securities
 
 
 
 
 
 
 
 
 
U.S. government and agency securities due
 
 
 
 
 
 
 
 
 
Within 1 year
$
19,999

 
$
42

 
$
(6
)
 
$
20,035

 
0.57
%
1 to 5 years
—

 
—

 
—

 
—

 
—

5 to 10 years
59,300

 
4,225

 
—

 
63,525

 
2.21
%
Over 10 years
100,000

 
—

 
—

 
100,000

 
1.05
%
Corporate bonds due

 

 

 

 

1 to 5 years
336,340

 
2,810

 
(61
)
 
339,089

 
0.91
%
5 to 10 years
62,919

 
1,324

 
(7
)
 
64,236

 
2.73
%
Municipal bonds due

 

 

 

 

  Over 10 years
20,442

 
4,402

 
—

 
24,844

 
6.45
%
Mortgage-backed securities

 

 

 

 

Agency pass-through certificates
1,161,668

 
9,358

 
(1,050
)
 
1,169,976

 
2.28
%
 
1,760,668

 
22,161

 
(1,124
)
 
1,781,705

 
1.99
%
Held-to-maturity securities
 
 
 
 
 
 
 
 
 
Tax-exempt municipal bonds due
 
 
 
 
 
 
 
 
 
Within 1 year
795

 
7

 
—

 
802

 
5.80
%
1 to 5 years
—

 
—

 
—

 
—

 
—
%
5 to 10 years
—

 
—

 
—

 
—

 
—
%
Over 10 years
—

 
—

 
—

 
—

 
—
%
U.S. government and agency securities due

 

 

 

 

1 to 5 years
—

 
—

 
—

 
—

 
—
%
Mortgage-backed securities

 

 

 

 

Agency pass-through certificates
1,190,692

 
25,729

 
—

 
1,216,421

 
3.10
%
 
1,191,487

 
25,736

 
—

 
1,217,223

 
3.10
%
 
$
2,952,155

 
$
47,897

 
$
(1,124
)
 
$
2,998,928

 
2.44
%
 
 
 
 
 
 
 
 
 
 
September 30,
2011
 
Amortized
Cost
 
Gross Unrealized
 
Fair
Value
 
Yield
 
Gains
 
Losses
 
 
(In thousands)
Available-for-sale securities
 
 
 
 
 
 
 
 
 
U.S. government and agency securities due
 
 
 
 
 
 
 
 
 
Within 1 year
$
500

 
$
34

 
$
—

 
$
534

 
4.00
%
1 to 5 years
—

 
—

 
—

 
—

 
—
%
5 to 10 years
9,300

 
4,547

 
—

 
13,847

 
10.38
%
Over 10 years
175,515

 
631

 
—

 
176,146

 
2.57
%
Corporate bonds due

 

 

 

 

1 to 5 years


 


 


 


 


5 to 10 years
30,000

 
284

 
(325
)
 
29,959

 
4.00
%
Municipal bonds due

 

 

 

 

  Over 10 years
20,461

 
3,107

 
—

 
23,568

 
6.45
%
Mortgage-backed securities

 

 

 

 

Agency pass-through certificates
2,883,734

 
127,356

 
—

 
3,011,090

 
4.72
%
 
3,119,510

 
135,959

 
(325
)
 
3,255,144

 
4.62
%
Held-to-maturity securities
 
 
 
 
 
 
 
 
 
Tax-exempt municipal bonds due
 
 
 
 
 
 
 
 
 
Within 1 year


 


 


 


 
—
%
1 to 5 years
405

 
5

 
—

 
410

 
6.52
%
5 to 10 years
1,545

 
68

 
—

 
1,613

 
5.60
%
Over 10 years
—

 
—

 
—

 
—

 
—
%
U.S. government and agency securities due

 

 

 

 

1 to 5 years
—

 
—

 
—

 
—

 
—
%
Mortgage-backed securities

 

 

 

 

Agency pass-through certificates
45,086

 
3,507

 
—

 
48,593

 
5.31
%
 
47,036

 
3,580

 
—

 
50,616

 
5.33
%
 
$
3,166,546

 
$
139,539

 
$
(325
)
 
$
3,305,760

 
4.63
%

 
$2,257,913,000 of available-for-sale securities were sold in 2012, resulting in a gain of $95,234,000. $131,361,000 of available-for-sale securities were sold in 2011, resulting in a net gain of $8,147,000. $496,024,000 of available-for-sale securities were sold in 2010, resulting in a net gain of $22,409,000.

Substantially all mortgage-backed securities have contractual due dates that exceed twenty-five years.

The following table shows the unrealized gross losses and fair value of securities at September 30, 2012, by length of time that individual securities in each category have been in a continuous loss position. The Company had $10.0 million securities in a continuous loss position for 12 or more months at September 30, 2012, which consisted of mortgage-backed securities. Management believes that the declines in fair value of these investments are not an other than temporary impairment.
 
As of September 30,
2012
  
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
$
(61
)
$
14,939

$
(7
)
$
9,994

$
(68
)
$
24,933

U.S. agency securities
(6
)
19,493

—

—

(6
)
19,493

Agency pass-through certificates
(1,050
)
201,749

—

—

(1,050
)
201,749

 
$
(1,117
)
$
236,181

$
(7
)
$
9,994

$
(1,124
)
$
246,175
v2.4.0.6
Loans Receivable (excluding Covered Loans)
 12 Months Ended
Sep. 30, 2012
Loans Receivable [Abstract]  
Loans Receivable (excluding Covered Loans)
Loans Receivable (excluding Covered Loans)
 
 
September 30, 2012
 
September 30, 2011
 
(In thousands)
 
 
 
(In thousands)
 
 
Non-acquired loans
 
 
 
 
 
 
 
  Single-family residential
$
5,778,922

 
73.5
%
 
$
6,218,878

 
74.9
%
  Construction - speculative
129,637

 
1.6

 
140,459

 
1.7

  Construction - custom
211,690

 
2.7

 
279,851

 
3.4

  Land - acquisition & development
124,677

 
1.6

 
200,692

 
2.4

  Land - consumer lot loans
141,844

 
1.8

 
163,146

 
2.0

  Multi-family
710,140

 
9.0

 
700,673

 
8.4

  Commercial real estate
319,210

 
4.1

 
303,442

 
3.7

  Commercial & industrial
162,823

 
2.1

 
109,332

 
1.3

  HELOC
112,902

 
1.4

 
115,092

 
1.4

  Consumer
63,374

 
0.8

 
67,509

 
0.8

Total non-acquired loans
7,755,219

 
98.6

 
8,299,074

 
100

Credit-impaired acquired loans
 
 
 
 
 
 
 
  Single-family residential
342

 
—

 
—

 
—

  Construction - speculative
1,889

 
—

 
—

 
—

  Construction - custom
—

 
—

 
—

 
—

  Land - acquisition & development
3,702

 
0.1

 
—

 
—

  Land - consumer lot loans
—

 
—

 
—

 
—

  Multi-family
601

 
—

 
—

 
—

  Commercial real estate
87,154

 
1.1

 
—

 
—

  Commercial & industrial
3,292

 
—

 
—

 
—

  HELOC
14,040

 
0.2

 
—

 
—

  Consumer
97

 
—

 
—

 
—

Total credit-impaired acquired loans
111,117

 
1.4

 
—

 
—

Total loans
 
 
 
 
 
 
 
   Single-family residential
5,779,264

 
73.5