v2.4.0.6
Document and Entity Information
 6 Months Ended
Mar. 31, 2012
May 04, 2012
Document and Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2012  
Document Fiscal Year Focus 2012  
Document Fiscal Period Focus Q2  
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   106,875,953
v2.4.0.6
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2012
Sep. 30, 2011
ASSETS    
Cash and cash equivalents $ 890,347 $ 816,002
Available-for-sale securities, including encumbered securities of $1,001,116 and $965,927, at fair value 3,687,625 3,255,144
Held-to-maturity securities, including encumbered securities of $37,912 and $45,086, at amortized cost 38,707 47,036
Loans receivable, net 7,676,017 7,935,877
Covered loans, net 321,634 382,183
Interest receivable 54,119 52,332
Premises and equipment, net 174,580 166,593
Real estate held for sale 120,095 159,829
Covered real estate held for sale 35,809 56,383
FDIC indemnification asset 100,875 101,634
FHLB stock 151,747 151,755
Intangible assets, net 257,250 256,271
Federal and state income taxes 4,406 0
Other assets 50,897 59,710
Assets 13,564,108 13,440,749
Customer accounts    
Transaction deposit accounts 2,864,624 2,662,188
Time deposit accounts 5,933,816 6,003,715
Savings and Demand Accounts and Repurchase Agreements with Customers 8,798,440 8,665,903
FHLB advances 1,960,041 1,962,066
Other borrowings 800,000 800,000
Advance payments by borrowers for taxes and insurance 29,415 39,548
Federal and State income taxes 0 1,535
Accrued expenses and other liabilities 68,155 65,164
Liabilities 11,656,051 11,534,216
Stockholders’ equity    
Common stock, $1.00 par value, 300,000,000 shares authorized;129,919,851 and 129,853,534 shares issued; 106,867,527 and 108,976,410 shares outstanding 129,920 129,854
Paid-in capital 1,584,803 1,582,843
Accumulated other comprehensive income, net of taxes 65,183 85,789
Treasury stock, at cost; 23,052,324 and 20,877,124 shares (298,972) (268,665)
Retained earnings 427,123 376,712
Stockholders' Equity Attributable to Parent 1,908,057 1,906,533
Liabilities and Equity $ 13,564,108 $ 13,440,749
v2.4.0.6
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Mar. 31, 2012
Sep. 30, 2011
Available-for-sales securities, encumbered securities $ 1,001,116 $ 965,927
Held-to-maturity securities, encumbered securities $ 37,912 $ 45,086
Common stock, par value $ 1.00 $ 1.00
Common stock, shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares issued (in shares) 129,919,851 129,853,534
Common stock, shares outstanding (in shares) 106,867,527 108,976,410
Treasury stock, shares (in shares) 23,052,324 20,877,124
v2.4.0.6
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)
In Thousands, except Share data, unless otherwise specified
 3 Months Ended 6 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 31, 2012
Mar. 31, 2011
INTEREST INCOME        
Loans $ 123,772 $ 128,634 $ 251,251 $ 266,550
Mortgage-backed securities 28,682 26,163 54,978 49,857
Investment securities and cash equivalents 2,127 3,742 4,278 7,722
Interest and Dividend Income, Operating 154,581 158,539 310,507 324,129
INTEREST EXPENSE        
Customer accounts 22,016 29,450 45,965 62,184
FHLB advances and other borrowings 27,963 27,534 56,226 55,656
Interest Expense 49,979 56,984 102,191 117,840
Net interest income 104,602 101,555 208,316 206,289
Provision for loan losses 18,000 30,750 29,209 56,750
Net interest income after provision for loan losses 86,602 70,805 179,107 149,539
OTHER INCOME        
Gain on sale of investments 0 8,147 0 8,147
Other 5,028 4,364 9,673 8,790
Noninterest Income 5,028 12,511 9,673 16,937
OTHER EXPENSE        
Compensation and benefits 20,185 17,824 38,860 35,547
Occupancy 4,094 3,636 8,025 7,151
FDIC insurance premiums 4,350 5,100 8,543 10,199
Other 8,183 6,761 15,748 14,703
Noninterest Expense 36,812 33,321 71,176 67,600
Loss on real estate acquired through foreclosure, net (1,582) (9,645) (12,151) (20,198)
Income before income taxes 53,236 40,350 105,453 78,678
Income tax provision 19,165 14,526 37,964 28,324
NET INCOME $ 34,071 $ 25,824 $ 67,489 $ 50,354
PER SHARE DATA        
Basic earnings (in dollars per share) $ 0.32 $ 0.23 $ 0.63 $ 0.45
Diluted earnings (in dollars per share) $ 0.32 $ 0.23 $ 0.63 $ 0.45
Cash dividends per share (in dollars per share) $ 0.08 $ 0.06 $ 0.16 $ 0.12
Basic weighted average number of shares outstanding (in shares) 107,198,829 112,278,823 107,523,686 112,364,935
Diluted weighted average number of shares outstanding, including dilutive stock options (in shares) 107,237,972 112,411,414 107,549,396 112,447,927
v2.4.0.6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 6 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 31, 2012
Mar. 31, 2011
Net income $ 34,071 $ 25,824 $ 67,489 $ 50,354
Other comprehensive income, net of tax of:        
Net unrealized loss on available-for-sale securities, net of quarter-to-date tax of $11,047 and $9,055, and year-to-date tax of $11,973 and $18,652, respectively (19,013) (20,738) (20,606) (37,255)
Reclassification adjustment of net gain from sale of available-for-sale securities included in net income 0 5,153 0 5,153
Other comprehensive income (19,013) (15,585) (20,606) (32,102)
Comprehensive income $ 15,058 $ 10,239 $ 46,883 $ 18,252
v2.4.0.6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parentheticals) (USD $)
In Thousands, unless otherwise specified
 3 Months Ended 6 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 31, 2012
Mar. 31, 2011
Net unrealized loss on available-for-sale securities, tax $ 11,047 $ 9,055 $ 11,973 $ 18,652
v2.4.0.6
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Thousands, unless otherwise specified
 6 Months Ended
Mar. 31, 2012
Mar. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 67,489 $ 50,354
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization (accretion) of fees, discounts, premiums and intangible assets, net 20,703 15,792
Cash received from (paid to) FDIC under loss share (4,068) 20,977
Depreciation 3,750 3,300
Stock option compensation expense 600 540
Provision for loan losses 29,209 56,750
Loss (gain) on real estate held for sale, net (1,285) 12,051
Increase in accrued interest receivable (1,536) (2,835)
Increase in FDIC loss share receivable (2,052) (1,183)
Increase in income taxes payable 6,031 18,072
FHLB stock dividends 244 (4)
Increase in intangible assets (1,061) 0
Decrease in other assets 9,649 15,213
Increase (decrease) in accrued expenses and other liabilities 1,956 (21,126)
Net cash provided by operating activities 129,629 167,901
CASH FLOWS FROM INVESTING ACTIVITIES    
Net principal collections (loan originations) 342,513 361,916
FHLB stock redemptions 1,512 0
Available-for-sale securities purchased (1,241,126) (967,176)
Principal payments and maturities of available-for-sale securities 758,676 358,297
Available-for-sale securities sold 3,500 131,361
Principal payments and maturities of held-to-maturity securities 8,394 28,146
Net cash received from acquisition 50,451 0
Proceeds from sales of real estate held for sale 90,017 44,639
Proceeds from sales of covered REO 22,959 0
Premises and equipment purchased (11,737) (5,462)
Net cash provided (used) by investing activities 25,159 (48,279)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net decrease in customer accounts (3,253) (62,268)
Net decrease in borrowings (19,700) (2,007)
Proceeds from exercise of common stock options 28 783
Dividends paid on common stock (17,078) (13,520)
Treasury stock purchased, net (30,307) (10,604)
Decrease in advance payments by borrowers for taxes and insurance (10,133) (8,667)
Net cash used by financing activities (80,443) (96,283)
Increase in cash and cash equivalents 74,345 23,339
Cash and cash equivalents at beginning of period 816,002 888,622
Cash and cash equivalents at end of period 890,347 911,961
Non-cash investing activities    
Non-covered real estate acquired through foreclosure 73,466 53,398
Covered real estate acquired through foreclosure 6,304 33,075
Cash paid during the period for    
Interest 103,170 119,479
Income taxes 31,947 10,252
The following summarizes the non-cash activities related to acquisitions    
Fair value of assets acquired 124,726 0
Fair value of liabilities assumed (154,500) 0
Net fair value of liabilities assumed $ (29,774) $ 0
v2.4.0.6
Summary of Significant Accounting Policies
 6 Months Ended
Mar. 31, 2012
Summary of Significant Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
The consolidated unaudited interim financial statements included in this report have been prepared by Washington Federal, Inc. (“Company”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect amounts reported in the financial statements. Actual results could differ from these estimates. In the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation are reflected in the interim financial statements. The September 30, 2011 Consolidated Statement of Financial Condition was derived from audited financial statements.
The information included in this Form 10-Q should be read in conjunction with Company’s 2011 Annual Report on Form 10-K (“2011 Form 10-K”) as filed with the SEC. Interim results are not necessarily indicative of results for a full year.
Loans receivable – When a borrower defaults on a loan, the Company attempts to cure the deficiency by working with the borrower. In most cases, deficiencies are cured promptly, sometimes as a result of a negotiated modification of terms. If the delinquency is not promptly cured, and negotiations do not lead to a modification of terms, the Company may institute appropriate legal action to collect the loan, which may include foreclose of collateral. If foreclosed, the collateral will be liquidated in a reasonable time frame at prices available in the market place.
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 past due or more. 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 its 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 2 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. The 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.
Off-Balance-Sheet Credit Exposures – The only material off-balance-sheet credit exposure is loans in process (“LIP”), which had a balance at March 31, 2012, excluding covered loans, of $133,379,000. The Company estimates losses on LIP by including LIP with the related principal balance outstanding and then applying its general reserve methodology to the gross amount.
Certain reclassifications have been made to the financial statements to conform prior periods to current classifications.
v2.4.0.6
Acquisitions
 6 Months Ended
Mar. 31, 2012
Business Combinations [Abstract]  
Acquisitions
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 Bank 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 Bank 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 Bank received a cash payment from the FDIC for $30 million.

The acquisition was accounted for under the acquisition method of accounting. The purchased assets and assumed liabilities were recorded at their respective acquisition date estimated fair values. The purchase accounting for acquired assets and liabilities, mainly related to the valuation of the acquired loans, is subject to future adjustment based on the completion of valuations. The amounts currently recognized in the financial statements have been determined provisionally as we are completing a fair value analysis of those assets. Final purchase accounting adjustments are expected to be complete by fiscal year end. Loans that were classified as non-performing loans by WNB are no longer classified as non-performing because, at acquisition, the carrying value of these loans was adjusted to reflect fair value. Management believes that the new book value reflects an amount that will ultimately be collected.

South Valley Bancorp, Inc.
On April 4, 2012, the Company and South Valley Bancorp, Inc. (“South Valley”) announced the signing of a definitive merger agreement. The merger agreement calls for the merger of South Valley with and into the Company, followed by the merger of South Valley's wholly owned subsidiary, South Valley Bank & Trust, into the Company's wholly owned subsidiary, Washington Federal. Under the terms of the definitive merger agreement, each outstanding share of South Valley common stock will be converted into the right to receive: (i) 0.2962 of a share of the Company's common stock, (ii) a contingent cash payment equal to the pro rata portion of an earn-out from the net proceeds collected from a pool of specified assets of South Valley with a value of approximately $39 million as of March 31, 2012, and (iii) a contingent cash payment equal to the pro rata portion of the net proceeds, if any, received by South Valley from the sale of its trust business and/or wealth management business prior to the closing of the merger. Assuming a per share price of $16.88 for the Company's common stock, the aggregate value of the stock portion of the merger consideration is approximately $33.7 million. After consummation of the merger, the combined company will have 190 offices in eight western states with total assets of approximately $14.4 billion and total deposits of approximately $9.6 billion, based on financial results as of December 31, 2011. The merger is expected to close in the third calendar quarter of 2012, pending the receipt of all requisite regulatory approvals, the approval of South Valley's shareholders and the satisfaction of other customary closing conditions.
v2.4.0.6
Dividends
 6 Months Ended
Mar. 31, 2012
Dividends [Abstract]  
Dividends
Dividends
On April 20, 2012, the Company paid its 117th consecutive quarterly cash dividend on common stock. Dividends per share were $.08 and $.06 for the quarters ended March 31, 2012 and 2011, respectively.
v2.4.0.6
Loans Receivable (excluding Covered Loans)
 6 Months Ended
Mar. 31, 2012
Loans Receivable [Abstract]  
Loans Receivable (excluding Covered Loans)
Loans Receivable (excluding Covered Loans)

 
March 31, 2012
 
September 30, 2011
 
(In thousands)
Non-acquired loans
 
 
 
 
 
 
 
  Single-family residential
$
5,971,540

 
74.4
%
 
$
6,218,878

 
74.7
%
  Construction - speculative
128,719

 
1.6

 
140,459

 
1.9

  Construction - custom
235,566

 
2.9

 
279,851

 
2.9

  Land - acquisition & development
151,967

 
1.9

 
200,692

 
3.5

  Land - consumer lot loans
149,967

 
1.9

 
163,146

 
2.1

  Multi-family
686,467

 
8.5

 
700,673

 
7.9

  Commercial real estate
293,234

 
3.7

 
303,442

 
3.6

  Commercial & industrial
94,919

 
1.2

 
109,332

 
1.0

  HELOC
113,368

 
1.4

 
115,092

 
1.3

  Consumer
71,081

 
0.9

 
67,509

 
1.1

Total non-acquired loans
7,896,828

 
98.4

 
8,299,074

 
100

Credit-impaired acquired loans
 
 
 
 
 
 
 
  Single-family residential
2,093

 
—

 
—

 
—

  Construction - speculative
139

 
—

 
—

 
—

  Construction - custom
—

 
—

 
—

 
—

  Land - acquisition & development
4,490

 
0.1

 
—

 
—

  Land - consumer lot loans
—

 
—

 
—

 
—

  Multi-family
1,229

 
—

 
—

 
—

  Commercial real estate
101,254

 
1.2

 
—

 
—

  Commercial & industrial
7,765

 
0.1

 
—

 
—

  HELOC
17,215

 
0.2

 
—

 
—

  Consumer
125

 
—

 
—

 
—

Total credit-impaired acquired loans
134,310

 
1.6

 
—

 
—

Total loans
 
 
 
 
 
 
 
   Single-family residential
5,973,633

 
74.4

 
6,218,878

 
74.7

   Construction - speculative
128,858

 
1.6

 
140,459

 
1.9

   Construction - custom
235,566

 
2.9

 
279,851

 
2.9

   Land - acquisition & development
156,457

 
2.0

 
200,692

 
3.5

   Land - consumer lot loans
149,967

 
1.9

 
163,146

 
2.1

   Multi-family
687,696

 
8.5

 
700,673

 
7.9

   Commercial real estate
394,488

 
4.9

 
303,442

 
3.6

   Commercial & industrial
102,684

 
1.3

 
109,332

 
1.0

   HELOC
130,583

 
1.6

 
115,092

 
1.3

   Consumer
71,206

 
0.9

 
67,509

 
1.1

Total loans
8,031,138

 
100
%
 
8,299,074

 
100
%
Less:
 
 
 
 
 
 
 
Allowance for probable losses
143,819

 
 
 
157,160

 
 
Loans in process
133,379

 
 
 
170,229

 
 
Discount on acquired loans
43,687

 
 
 
—

 
 
Deferred net origination fees
34,236

 
 
 
35,808

 
 
 
355,121

 
 
 
363,197

 
 
 
$
7,676,017

 
 
 
$
7,935,877

 
 

The following table presents the changes in the accretable yield for credit impaired acquired loans as of March 31, 2012:
 
Credit impaired acquired loans
 
Accretable
Yield
 
Carrying
Amount of
Loans
 
(In thousands)
Balance as of October 1, 2011
$
—

 
$
—

Additions
21,606

 
92,981

Accretion
(1,790
)
 
1,790

Transfers to REO
—

 
—

Payments received, net
—

 
(4,148
)
Balance as of March 31, 2012
$
19,816

 
$
90,623



The following table sets forth information regarding non-accrual loans held by the Company as of the dates indicated:
 
 
March 31, 2012
 
September 30, 2011
 
(In thousands)
Non-accrual loans:
 
 
 
 
 
 
 
Single-family residential
$
116,284

 
70.0
%
 
$
126,624

 
60.3
%
Construction - speculative
8,190

 
4.9

 
15,383

 
7.3

Construction - custom
539

 
0.3

 
635

 
0.3

Land - acquisition & development
25,036

 
15.1

 
37,339

 
17.7

Land - consumer lot loans
5,641

 
3.4

 
8,843

 
4.2

Multi-family
4,530

 
2.7

 
7,664

 
3.6

Commercial real estate
4,997

 
3.0

 
11,380

 
5.4

Commercial & industrial
1

 
—

 
1,679

 
0.8

HELOC
591

 
0.4

 
481

 
0.2

Consumer
344

 
0.2

 
437

 
0.2

Total non-accrual loans
$
166,153

 
100
%
 
$
210,465

 
100
%

The following tables provide an analysis of the age of loans in past due status as of March 31, 2012 and September 30, 2011, respectively.
 
March 31, 2012
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
$
5,969,973

 
$
5,784,832

 
$
45,826

 
$
28,841

 
$
110,474

 
$
185,141

 
3.10
%
Construction - Speculative
102,654

 
97,455

 
—

 
1,635

 
3,564

 
5,199

 
5.06

Construction - Custom
145,406

 
144,845

 
—

 
22

 
539

 
561

 
0.39

Land - Acquisition & Development
146,228

 
125,100

 
—

 
5,452

 
15,676

 
21,128

 
14.45

Land - Consumer Lot Loans
149,966

 
142,155

 
966

 
1,204

 
5,641

 
7,811

 
5.21

Multi-Family
677,730

 
672,517

 
—

 
683

 
4,530

 
5,213

 
0.77

Commercial Real Estate
292,143

 
286,778

 
672

 
1,950

 
2,743

 
5,365

 
1.84

Commercial & Industrial
94,901

 
94,895

 
5

 
—

 
1

 
6

 
0.01

HELOC
113,368

 
112,657

 
60

 
60

 
591

 
711

 
0.63

Consumer
71,080

 
68,993

 
1,196

 
547

 
344

 
2,087

 
2.94

Total non-acquired loans
7,763,449

 
7,530,227

 
48,725

 
40,394

 
144,103

 
233,222

 
3.00

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit-impaired acquired loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Single-Family Residential
2,093

 
1,755

 
338

 
—

 
—

 
338

 
16.15

Construction - Speculative
139

 
139

 
—

 
—

 
—

 
—

 
—

Construction - Custom
—

 
—

 
—

 
—

 
—

 
—

 
—

Land - Acquisition & Development
4,490

 
3,937

 
—

 
—

 
553

 
553

 
12.32

Land - Consumer Lot Loans
—

 
—

 
—

 
—

 
—

 
—

 
—

Multi-Family
1,229

 
1,090

 
139

 
—

 
—

 
139

 
11.31

Commercial Real Estate
101,254

 
87,036

 
4,285

 
3,375

 
6,558

 
14,218

 
14.04

Commercial & Industrial
7,765

 
6,907

 
488

 
55

 
315

 
858

 
11.05

HELOC
17,215

 
15,331

 
—

 
1,084

 
800

 
1,884

 
10.94

Consumer
125

 
89

 
36

 
—

 
—

 
36

 
28.80

Total credit-impaired acquired loans
134,310

 
116,284

 
5,286

 
4,514

 
8,226

 
18,026

 
13.42

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loans
$
7,897,759

 
$
7,646,511

 
$
54,011

 
$
44,908

 
$
152,329

 
$
251,248

 
3.18



September 30, 2011
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)
Single-Family Residential
$
6,217,670

 
$
6,015,464

 
$
54,140

 
$
21,985

 
$
126,082

 
$
202,207

 
3.25
%
Construction - Speculative
115,409

 
106,843

 
330

 
—

 
8,236

 
8,566

 
7.42

Construction - Custom
147,764

 
147,129

 
—

 
—

 
635

 
635

 
0.43

Land - Acquisition & Development
193,613

 
159,357

 
679

 
—

 
33,577

 
34,256

 
17.69

Land - Consumer Lot Loans
163,146

 
151,849

 
1,163

 
1,291

 
8,843

 
11,297

 
6.92

Multi-Family
699,340

 
690,765

 
—

 
1,202

 
7,373

 
8,575

 
1.23

Commercial Real Estate
300,307

 
292,015

 
1,016

 
—

 
7,276

 
8,292

 
2.76

Commercial & Industrial
108,995

 
106,708

 
55

 
553

 
1,679

 
2,287

 
2.10

HELOC
115,092

 
114,059

 
452

 
100

 
481

 
1,033

 
0.90

Consumer
67,509

 
65,434

 
1,191

 
446

 
437

 
2,074

 
3.07

 
$
8,128,845

 
$
7,849,623

 
$
59,026

 
$
25,577

 
$
194,619

 
$
279,222

 
3.43



Recently, most loans restructured in troubled debt restructurings ("TDRs") are accruing and performing loans where the borrower has proactively approached the Company about modification due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of between 100 to 200 basis points for a specific term, usually six to twelve months. Interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. As of March 31, 2012, single-family residential loans comprised 82.6% of TDRs.

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

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

 
Quarter Ended March 31,
 
2012
 
2011
 
 
 
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
312

 
$
68,460

 
$
68,460

 
26

 
$
7,019

 
$
7,019

   Construction - Speculative
12

 
4,049

 
4,049

 
—

 
—

 
—

   Construction - Custom
—

 
—

 
—

 
—

 
—

 
—

   Land - Acquisition & Development
4

 
1,823

 
1,823

 
—

 
—

 
—

   Land - Consumer Lot Loans
14

 
2,116

 
2,116

 
3

 
498

 
498

   Multi-Family
2

 
1,871

 
1,871

 
2

 
951

 
951

   Commercial Real Estate
—

 
—

 
—

 
—

 
—

 
—

   Commercial & Industrial
—

 
—

 
—

 
—

 
—

 
—

   HELOC
—

 
—

 
—

 
—

 
—

 
—

   Consumer
—

 
—

 
—

 
—

 
—

 
—

 
344

 
$
78,319

 
$
78,319

 
31

 
$
8,468

 
$
8,468



 
Six Months Ended March 31,
 
2012
 
2011
 
 
 
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
491

 
$
121,145

 
$
121,145

 
165

 
$
46,488

 
$
46,488

   Construction - Speculative
23

 
7,428

 
7,428

 
—

 
—

 
—

   Construction - Custom
—

 
—

 
—

 
—

 
—

 
—

   Land - Acquisition & Development
26

 
6,173

 
6,173

 
—

 
—

 
—

   Land - Consumer Lot Loans
25