Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Sep. 30, 2013 | Nov. 01, 2013 | Sep. 30, 2012 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document type | '10-Q | ' | ' |
Document period end date | 30-Sep-13 | ' | ' |
Amendment flag | 'false | ' | ' |
Entity registrant name | 'E TRADE FINANCIAL CORP | ' | ' |
Entity central index key | '0001015780 | ' | ' |
Entity current reporting status | 'Yes | ' | ' |
Entity voluntary filers | 'No | ' | ' |
Current fiscal year end date | '--12-31 | ' | ' |
Entity filer category | 'Large Accelerated Filer | ' | ' |
Entity well known seasoned issuer | 'Yes | ' | ' |
Common stock shares outstanding | ' | 287,198,016 | ' |
Entity public float | ' | ' | $1.70 |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
CONSOLIDATED_STATEMENT_OF_INCO
CONSOLIDATED STATEMENT OF INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue: | ' | ' | ' | ' |
Operating interest income | $300,915 | $333,977 | $902,805 | $1,050,758 |
Operating interest expense | -60,068 | -73,100 | -178,088 | -225,924 |
Net operating interest income | 240,847 | 260,877 | 724,717 | 824,834 |
Commissions | 102,753 | 90,424 | 309,846 | 291,168 |
Fees and service charges | 39,924 | 30,915 | 112,801 | 91,976 |
Principal transactions | 12,631 | 22,177 | 55,553 | 67,562 |
Gains on loans and securities, net | 12,213 | 78,977 | 48,954 | 138,568 |
Other-than-temporary impairment (OTTI) | 0 | -2,052 | -632 | -16,113 |
Less: noncredit portion of OTTI recognized into (out of) other comprehensive income (loss) (before tax) | -586 | -343 | -1,699 | 4,917 |
Net impairment | -586 | -2,395 | -2,331 | -11,196 |
Other revenues | 9,020 | 9,060 | 27,058 | 28,928 |
Total non-interest income | 175,955 | 229,158 | 551,881 | 607,006 |
Total net revenue | 416,802 | 490,035 | 1,276,598 | 1,431,840 |
Provision for loan losses | 37,399 | 141,019 | 126,198 | 280,227 |
Operating expense: | ' | ' | ' | ' |
Compensation and benefits | 88,405 | 94,790 | 270,077 | 272,617 |
Advertising and market development | 20,925 | 26,001 | 80,793 | 110,156 |
Clearing and servicing | 30,941 | 30,856 | 93,647 | 98,248 |
FDIC insurance premiums | 24,707 | 31,342 | 79,052 | 86,899 |
Professional services | 22,842 | 20,421 | 58,778 | 60,690 |
Occupancy and equipment | 17,675 | 19,423 | 53,344 | 55,521 |
Communications | 15,279 | 17,560 | 52,411 | 55,038 |
Depreciation and amortization | 21,839 | 23,044 | 67,684 | 68,387 |
Amortization of other intangibles | 5,699 | 6,296 | 17,833 | 18,887 |
Impairment of goodwill | 0 | 0 | 142,423 | 0 |
Facility restructuring and other exit activities | 6,410 | 2,350 | 23,871 | 3,515 |
Other operating expenses | 16,022 | 16,950 | 40,293 | 46,769 |
Total operating expense | 270,744 | 289,033 | 980,206 | 876,727 |
Income before other income (expense) and income tax expense (benefit) | 108,659 | 59,983 | 170,194 | 274,886 |
Other income (expense): | ' | ' | ' | ' |
Corporate interest income | 9 | 21 | 33 | 55 |
Corporate interest expense | -28,605 | -45,483 | -85,838 | -135,893 |
Losses on early extinguishment of debt | ' | -50,608 | ' | -50,608 |
Equity in income (loss) of investments and other | -133 | -216 | 5,127 | 1,791 |
Total other income (expense) | -28,729 | -96,286 | -80,678 | -184,655 |
Income (loss) before income tax expense (benefit) | 79,930 | -36,303 | 89,516 | 90,231 |
Income tax expense (benefit) | 32,502 | -7,678 | 61,367 | 16,755 |
Net income (loss) | $47,428 | ($28,625) | $28,149 | $73,476 |
Basic earnings (loss) per share | $0.17 | ($0.10) | $0.10 | $0.26 |
Diluted earnings (loss) per share | $0.16 | ($0.10) | $0.10 | $0.25 |
Shares used in computation of per share data: | ' | ' | ' | ' |
Basic | 287,111 | 285,850 | 286,882 | 285,658 |
Diluted | 292,630 | 285,850 | 292,249 | 290,395 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' | ||||
Net Income (Loss) | $47,428 | ($28,625) | $28,149 | $73,476 | ||||
Available-for-sale securities: | ' | ' | ' | ' | ||||
OTTI, net(1) | 0 | [1] | 1,291 | [1] | 393 | [1] | 10,071 | [1] |
Noncredit portion of OTTI reclassification (into) out of other comprehensive income (loss), net(2) | 361 | [2] | 215 | [2] | 1,055 | [2] | -3,071 | [2] |
Unrealized gains (losses), net(3) | 18,463 | [3] | 85,928 | [3] | -202,552 | [3] | 179,257 | [3] |
Reclassification into earnings, net(4) | -9,677 | [4] | -50,349 | [4] | -30,660 | [4] | -90,948 | [4] |
Net change from available-for-sale securities | 9,147 | 37,085 | -231,764 | 95,309 | ||||
Cash flow hedging instruments: | ' | ' | ' | ' | ||||
Unrealized gains (losses), net(5) | -11,894 | [5] | -21,905 | [5] | 56,575 | [5] | -73,602 | [5] |
Reclassifications into earnings, net(6) | 21,214 | [6] | 20,471 | [6] | 64,357 | [6] | 60,329 | [6] |
Net change from cash flow hedging instruments | 9,320 | -1,434 | 120,932 | -13,273 | ||||
Foreign currency translation gains, net | 582 | 1,645 | 142 | 1,190 | ||||
Other comprehensive income (loss) | 19,049 | 37,296 | -110,690 | 83,226 | ||||
Comprehensive income (loss) | $66,477 | $8,671 | ($82,541) | $156,702 | ||||
[1] | Amounts are net of benefit from income taxes of $0.2 million for the nine months ended September 30, 2013, compared to benefit from income taxes of $0.8 million and $6.0 million for the three and nine months ended September 30, 2012, respectively. | |||||||
[2] | Amounts are net of benefit from income taxes of $0.2 million and $0.6 million for the three and nine months ended September 30, 2013, respectively, compared to benefit from income taxes of $0.1 million and $1.8 million for the three and nine months ended September 30, 2012, respectively. | |||||||
[3] | Amounts are net of provision from income taxes of $11.5 million and benefit from $120.2 million for the three and nine months ended September 30, 2013, respectively, compared to provision for income taxes of $50.7 million and $106.9 million for the three and nine months ended September 30, 2012, respectively. | |||||||
[4] | Amounts are net of provision for income taxes of $6.0 million and $18.6 million for the three and nine months ended September 30, 2013, respectively, compared to provision for income taxes of $29.7 million and $54.1 million for the three and nine months ended September 30, 2012, respectively. | |||||||
[5] | Amounts are net of benefit from income taxes of $7.8 million and provision for $26.8 million for the three and nine months ended September 30, 2013, respectively, compared to benefit from income taxes of $11.7 million and $42.7 million for the three and nine months ended September 30, 2012, respectively. | |||||||
[6] | Amounts are net of benefit from income taxes of $13.8 million and $37.9 million for the three and nine months ended September 30, 2013, respectively, compared to benefit from income taxes of $12.3 million and $36.5 million for the three and nine months ended September 30, 2012, respectively. |
CONSOLIDATED_STATEMENT_OF_COMP1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (PARENTHETICAL) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Statement Of Comprehensive Income Loss Parenthetical [Abstract] | ' | ' | ' | ' |
Income tax of OTTI, net | $0 | ($0.80) | ($0.20) | ($6) |
Income tax of noncredit portion of OTTI reclassification out of (into) other comprehensive income (loss), net | -0.2 | -0.1 | -0.6 | -1.8 |
Income tax of available-for-sale securities unrealized gains (losses), net | 11.5 | 50.7 | -120.2 | 106.9 |
Income tax of available-for-sale securities reclassification into earnings, net | 6 | 29.7 | 18.6 | 54.1 |
Income tax of cash flow hedging instruments unrealized gains (losses), net | -7.8 | -11.7 | 26.8 | -42.7 |
Income tax of cash flow instruments reclassification into earnings, net | ($13.80) | ($12.30) | ($37.90) | ($36.50) |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and equivalents | $1,796,181 | $2,761,494 |
Cash required to be segregated under federal or other regulations | 738,221 | 376,898 |
Trading securities | 0 | 101,270 |
Available-for-sale securities | 13,281,458 | 13,443,020 |
Held-to-maturity securities | 9,944,153 | 9,539,948 |
Margin receivables | 6,188,708 | 5,804,041 |
Loans receivable, net | 8,564,614 | 10,098,723 |
Investment in FHLB stock | 61,400 | 67,400 |
Property and equipment, net | 246,186 | 288,170 |
Goodwill | 1,791,809 | 1,934,232 |
Other intangibles, net | 221,628 | 260,622 |
Other assets | 2,713,121 | 2,710,921 |
Total assets | 45,547,479 | 47,386,739 |
Liabilities: | ' | ' |
Deposits | 25,869,797 | 28,392,552 |
Securities sold under agreements to repurchase | 4,449,665 | 4,454,661 |
Customer payables | 5,830,257 | 4,964,922 |
FHLB advances and other borrowings | 1,285,011 | 1,260,916 |
Corporate debt | 1,767,749 | 1,764,982 |
Other liabilities | 1,515,426 | 1,644,236 |
Total liabilities | 40,717,905 | 42,482,269 |
Commitments and contingencies (see Note 15) | ' | ' |
Shareholders equity: | ' | ' |
Common stock | 2,872 | 2,861 |
Additional paid-in-capital (APIC) | 7,326,891 | 7,319,257 |
Accumulated deficit | -2,079,571 | -2,107,720 |
Accumulated other comprehensive loss | -420,618 | -309,928 |
Total shareholders' equity | 4,829,574 | 4,904,470 |
Total liabilities and shareholders' equity | $45,547,479 | $47,386,739 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement - Statement of Financial Position (Parentheticals) [Abstract] | ' | ' |
Held-to-maturity securities, fair value | $9,977,373 | $9,910,496 |
Allowance for loan losses | $458,921 | $480,751 |
Common stock par value | $0.01 | $0.01 |
Common stock shares authorized | 400,000,000 | 400,000,000 |
Common stock shares issued | 287,182,972 | 286,114,334 |
Common stock shares outstanding | 287,182,972 | 286,114,334 |
CONSOLIDATED_STATEMENT_OF_SHAR
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
In Thousands | |||||
Beginning balance, at Dec. 31, 2011 | $4,927,950 | $2,854 | $7,306,862 | ($1,995,137) | ($386,629) |
Balance, at Dec. 31, 2011 | ' | 285,368 | ' | ' | ' |
Net income | 73,476 | ' | ' | 73,476 | ' |
Other comprehensive income (loss) | 83,226 | ' | ' | ' | 83,226 |
Conversion of convertible debentures | 100 | ' | 100 | ' | ' |
Conversion of convertible debentures | ' | 10 | ' | ' | ' |
Exercise of stock options and related tax effects | -4,428 | ' | -4,428 | ' | ' |
Exercise of stock options and related tax effects | ' | 2 | ' | ' | ' |
Issuance of restricted stock, net of forfeitures and retirements to pay taxes | -3,574 | 7 | -3,581 | ' | ' |
Issuance of restricted stock, net of forfeitures and retirements to pay taxes | ' | 676 | ' | ' | ' |
Share-based compensation | 17,097 | ' | 17,097 | ' | ' |
Other | 7 | ' | 7 | ' | ' |
Ending balance, at Sep. 30, 2012 | 5,093,854 | 2,861 | 7,316,057 | -1,921,661 | -303,403 |
Balance, at Sep. 30, 2012 | ' | 286,056 | ' | ' | ' |
Beginning balance, at Dec. 31, 2012 | 4,904,470 | 2,861 | 7,319,257 | -2,107,720 | -309,928 |
Balance, at Dec. 31, 2012 | ' | 286,114 | ' | ' | ' |
Net income | 28,149 | ' | ' | 28,149 | ' |
Other comprehensive income (loss) | -110,690 | ' | ' | ' | -110,690 |
Conversion of convertible debentures | 1 | ' | 1 | ' | ' |
Exercise of stock options and related tax effects | -6,072 | 1 | -6,073 | ' | ' |
Exercise of stock options and related tax effects | ' | 102 | ' | ' | ' |
Issuance of restricted stock, net of forfeitures and retirements to pay taxes | -6,693 | 10 | -6,703 | ' | ' |
Issuance of restricted stock, net of forfeitures and retirements to pay taxes | ' | 967 | ' | ' | ' |
Share-based compensation | 20,409 | ' | 20,409 | ' | ' |
Ending balance, at Sep. 30, 2013 | $4,829,574 | $2,872 | $7,326,891 | ($2,079,571) | ($420,618) |
Balance, at Sep. 30, 2013 | ' | 287,183 | ' | ' | ' |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $28,149 | $73,476 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for loan losses | 126,198 | 280,227 |
Depreciation and amortization (including discount amortization and accretion) | 311,284 | 300,608 |
Net impairment and gains on loans and securities, net | -46,623 | -127,372 |
Impairment of goodwill | 142,423 | 0 |
Equity in income (loss) of investments and other | -5,127 | -1,791 |
Losses on early extinguishment of debt | ' | 50,608 |
Share-based compensation | 20,409 | 17,097 |
Deferred taxes | 59,715 | 179,066 |
Other | 2,095 | -133 |
Net effect of changes in assets and liabilities: | ' | ' |
Increase in cash required to be segregated under federal or other regulations | -361,323 | -158,743 |
Increase in margin receivables | -384,667 | -781,997 |
Increase in customer payables | 865,335 | 422,782 |
Proceeds from sales of loans held-for-sale | 5,364 | 284,083 |
Originations of loans held-for-sale | ' | -286,932 |
Net decrease (increase) in trading securities | 17 | -52,922 |
Decrease in other assets | 254,356 | 179,486 |
Decrease in other liabilities | -129,106 | -19,061 |
Net cash provided by operating activities | 888,499 | 358,482 |
Cash flows from investing activities: | ' | ' |
Purchases of available-for-sale securities | -5,432,676 | -8,361,692 |
Proceeds from sales, maturities of and principal payments on available-for-sale securities | 5,189,935 | 9,305,899 |
Purchases of held-to-maturity securities | -2,032,297 | -4,414,929 |
Proceeds from maturities of and principal payments on held-to-maturity securtiies | 1,579,089 | 781,414 |
Net decrease in loans receivable | 1,315,658 | 1,335,623 |
Capital expenditures for property and equipment | -31,282 | -65,823 |
Proceeds from sale of REO and repossessed assets | 53,334 | 81,149 |
Net cash flow from derivatives hedging assets | 10,821 | -71,178 |
Other | 6,000 | 9,240 |
Net cash provided by (used in) investing activities | 658,582 | -1,400,297 |
Cash flows from financing activities: | ' | ' |
Net (decrease) increase in deposits | -2,522,757 | 2,666,726 |
Net decrease in securities sold under agreements to repurchase | -4,996 | -406,382 |
Advances from FHLB | 1,010,000 | 2,460,000 |
Payments on advances from FHLB | -1,010,000 | -2,880,000 |
Net cash flow from derivatives hedging liabilities | 4,454 | -18,864 |
Other | 10,905 | -54,492 |
Net cash (used in) provided by financing activities | -2,512,394 | 1,766,988 |
(Decrease) increase in cash and equivalents | -965,313 | 725,173 |
Cash and equivalents, beginning of period | 2,761,494 | 2,099,839 |
Cash and equivalents, end of period | 1,796,181 | 2,825,012 |
Supplemental disclosures: | ' | ' |
Cash paid for interest | 180,303 | 258,748 |
Cash paid for income taxes | 2,938 | 6,194 |
Non-cash investing and financing activities: | ' | ' |
Reclassification of market making business assets and liabilities to business held-for-sale | 78,978 | ' |
Reclassification of loans held-for-investment to loans held-for-sale | 41,102 | ' |
Transfers from loans to other real estate owned and repossessed assets | 58,969 | 101,460 |
Conversion of convertible debentures to common stock | $1 | $100 |
Organization_Basis_of_Presenta
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||||||||||
Organization, Basis of Presentation and Summary of Significant Accounting Policies | ' | ||||||||||||||||||||
NOTE 1—ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||
Organization—E*TRADE Financial Corporation is a financial services company that provides online brokerage and related products and services primarily to individual retail investors under the brand “E*TRADE Financial.” The Company also provides investor-focused banking products, primarily sweep deposits and savings products, to retail investors. | |||||||||||||||||||||
Basis of Presentation—The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries as determined under the voting interest model. Entities in which the Company holds at least a 20% ownership interest or in which there are other indicators of significant influence are generally accounted for by the equity method. Entities in which the Company holds less than a 20% ownership interest and does not have the ability to exercise significant influence are generally carried at cost. Intercompany accounts and transactions are eliminated in consolidation. The Company also evaluates its continuing involvement with certain entities to determine if the Company is required to consolidate the entities under the variable interest entity model. This evaluation is based on a qualitative assessment of whether the Company has both: 1) the power to direct matters that most significantly impact the activities of the variable interest entity; and 2) the obligation to absorb losses or the right to receive benefits of the variable interest entity that could potentially be significant to the variable interest entity. | |||||||||||||||||||||
Certain prior period items in these consolidated financial statements have been reclassified to conform to the current period presentation. These consolidated financial statements reflect all adjustments, which are all normal and recurring in nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. All prior periods have been adjusted to present gains on sales of investments, net and equity in income (loss) of investments and venture funds on a single line item, equity in income (loss) of investments and other, on the consolidated statement of income (loss). These two line items were previously presented as separate line items on the consolidated statement of income (loss). | |||||||||||||||||||||
At the end of June 2013, the Company decided to exit its market making business, and reclassified the assets and liabilities of the market making business to held-for-sale. The assets and liabilities of the market making business are presented in the other assets and other liabilities line items, respectively, as of September 30, 2013 on the consolidated balance sheet. | |||||||||||||||||||||
The Company reports corporate interest income and corporate interest expense separately from operating interest income and operating interest expense. The Company believes reporting these two items separately provides a clearer picture of the financial performance of the Company's operations than would a presentation that combined these two items. Operating interest income and operating interest expense is generated from the operations of the Company. Corporate debt, which is the primary source of corporate interest expense, has been issued primarily in connection with recapitalization transactions and past acquisitions. | |||||||||||||||||||||
Similarly, the Company reports gains on sales of investments, net separately from gains on loans and securities, net. The Company believes reporting these two items separately provides a clearer picture of the financial performance of its operations than would a presentation that combined these two items. Gains on loans and securities, net are the result of activities in the Company's operations, namely its balance sheet management segment. Gains on sales of investments, net relate to investments of the Company at the corporate level and are not related to the ongoing business of the Company's operating subsidiaries. Gains on sales of investments, net is reported in the equity in income (loss) of investments and other line item on the consolidated statement of income (loss). | |||||||||||||||||||||
These consolidated financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended December 31, 2012. | |||||||||||||||||||||
Related Parties—Kenneth Griffin, President and CEO of Citadel, served on the Company's Board of Directors from June 8, 2009 to May 9, 2013. During this period, the Company routed a portion of its customer equity orders in exchange-listed options and Regulation NMS Securities to an affiliate of Citadel for order handling and execution at current market rates. Payments for these customer equity orders represented less than 1% of the Company's total net revenue for both the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||
Joseph M. Velli, Chairman and CEO of ConvergEx Group, joined the Board of Directors in January 2010. During the periods presented, the Company used ConvergEx Group for clearing and transfer agent services. Payments for these services represented less than 1% of the Company's total operating expenses for both the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||
Use of Estimates—The consolidated financial statements were prepared in accordance with GAAP, which requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes for the periods presented. Actual results could differ from management's estimates. Certain significant accounting policies are noteworthy because they are based on estimates and assumptions that require complex and subjective judgments by management. Changes in these estimates or assumptions could materially impact the Company's financial condition and results of operations. Material estimates in which management believes changes could reasonably occur include: allowance for loan losses; valuation of goodwill and other intangible assets; estimates of effective tax rates, deferred taxes and valuation allowance; classification and valuation of certain investments; accounting for derivative instruments; and fair value measurements. | |||||||||||||||||||||
Financial Statement Descriptions and Related Accounting Policies | |||||||||||||||||||||
Margin Receivables—The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, where the Company is permitted to sell or re-pledge the securities, was approximately $8.7 billion and $8.2 billion as of September 30, 2013 and December 31, 2012, respectively. Of this amount, $1.7 billion and $1.5 billion had been pledged or sold in connection with securities loans, bank borrowings and deposits with clearing organizations as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||
Allowance for Loan Losses—The allowance for loan losses is management's estimate of probable losses inherent in the loan portfolio as of the balance sheet date. The Company's segments are one- to four-family, home equity and consumer and other. For loans that are not TDRs, the Company established a general allowance. The estimate of the allowance for loan losses is based on a variety of quantitative and qualitative factors, including the composition and quality of the portfolio; delinquency levels and trends; current and historical charge-off and loss experience; the Company's historical loss mitigation experience; the condition of the real estate market and geographic concentrations within the loan portfolio; the interest rate climate; the overall availability of housing credit; and general economic conditions. The one- to four-family and home equity loan portfolios are separated into risk segments based on key risk factors, which include but are not limited to loan type, delinquency history, documentation type, LTV/CLTV ratio and borrowers' credit scores. For home equity loans in the second lien position, the original balance of the first lien loan at origination date and updated valuations on the property underlying the loan are used to calculate CLTV. Both current CLTV and FICO scores are among the factors utilized to categorize the risk associated with loans and assign a probability assumption of future default. Based upon the segmentation, the Company utilizes historical performance data to develop the forecast of delinquency and default for these risk segments. During the three and nine months ended September 30, 2013, the Company evaluated and refined its default assumptions related to a subset of the home equity line of credit portfolio that will require borrowers to repay the loan in full at the end of the draw period, commonly referred to as “balloon loans”. These loans were approximately $250 million of the home equity line of credit portfolio at September 30, 2013. The Company evaluated the significant burden a balloon payment may place on a borrower with a low FICO score and high CLTV ratio, and examined those loans within the balloon portfolio. The Company refined its expectations and estimates around the time period that it might take for these borrowers' equity positions in their collateral to appreciate in order to allow for possible refinance of the balloon loan at maturity. As a result of this evaluation, the Company increased its default assumptions and extended the period of management's forecasted loan losses captured within the general allowance to include the total probable loss on this subset of balloon loans. The overall impact of these enhancements drove the majority of provision for loan losses during the three and nine months ended September 30, 2013. The Company's consumer and other loan portfolio is separated into risk segments by product and delinquency status. The Company utilizes historical performance data and historical recovery rates on collateral liquidation to forecast delinquency and loss at the product level. The general allowance for loan losses is typically equal to management's forecast of loan losses in the twelve months following the balance sheet date. | |||||||||||||||||||||
The general allowance for loan losses also included a qualitative component to account for a variety of factors that are not directly considered in the quantitative loss model but are factors the Company believes may impact the level of credit losses. Examples of these factors are: external factors, such as changes in the macroeconomic, legal and regulatory environment; internal factors, such as procedural changes and reliance on third parties; and portfolio specific factors, such as the impact of payment resets and historical loan modification activity, which impacts the historical performance data used to forecast delinquency and default in the general allowance for loan losses. | |||||||||||||||||||||
The total qualitative component was $52 million and $44 million at September 30, 2013 and December 31, 2012, respectively. The qualitative component for the one- to four-family and home equity loan portfolios was 19% and 17% of the general allowance for loan losses at September 30, 2013 and December 31, 2012, respectively. The increase in the qualitative reserve in these loan portfolios from December 31, 2012 to September 30, 2013 primarily reflects updates to portfolio specific factors. The qualitative component for the consumer and other loan portfolio was 16% and 17% of the general allowance at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||
For modified loans accounted for as TDRs that are valued using the discounted cash flow model, the Company established a specific allowance. The specific allowance for TDRs factors in the historical default rate of an individual loan before being modified as a TDR in the discounted cash flow analysis in order to determine that specific loan's expected impairment. Specifically, a loan that has a more severe delinquency history prior to modification will have a higher future default rate in the discounted cash flow analysis than a loan that was not as severely delinquent. For both of the one- to four-family and home equity loan portfolio segments, the pre-modification delinquency status, the borrower's current credit score and other credit bureau attributes, in addition to each loan's individual default experience and credit characteristics, are incorporated into the calculation of the specific allowance. A specific allowance is established to the extent that the recorded investment exceeds the discounted cash flows of a TDR with a corresponding charge to provision for loan losses. The specific allowance for these individually impaired loans represents the forecasted losses over the estimated remaining life of the loan, including the economic concession to the borrower. | |||||||||||||||||||||
Income Taxes—The Company's unrecognized tax benefit decreased $157.4 million to $334.6 million during the nine months ended September 30, 2013. The majority of the decrease was due to the Company's ability to carryback 2012 operating losses to 2010 and 2011. At September 30, 2013, $243.9 million (net of federal benefits on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate in future periods. | |||||||||||||||||||||
Offsetting Assets and Liabilities—Effective January 1, 2013, the Company adopted the amended disclosure guidance about offsetting certain assets and liabilities, which required additional information about derivative instruments, repurchase agreements and securities borrowing and securities lending transactions that are offset or subject to an enforceable master netting arrangement or similar agreement. For financial statement purposes, the Company does not offset derivative instruments, repurchase agreements or securities borrowing and securities lending transactions. The Company's derivative instruments, repurchase agreements and securities borrowing and securities lending transactions are transacted under master agreements that are widely used by counterparties and that may allow for net settlements of payments in the normal course as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the two parties to the transaction; therefore, all of these transactions are presented in the amended disclosures. The following table presents information about these transactions to enable the users of the Company's financial statements to evaluate the potential effect of rights of setoff between these recognized assets and recognized liabilities as of September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheet | |||||||||||||||||||||
Gross Amounts of Recognized Assets and Liabilities | Gross Amounts Offset in the Consolidated Balance Sheet | Net Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Collateral Received or Pledged (Including Cash) | Net Amount | ||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Deposits paid for securities | |||||||||||||||||||||
borrowed(1)(5) | $ | 422,737 | $ | - | $ | 422,737 | $ | -132,104 | $ | -280,871 | $ | 9,762 | |||||||||
Derivative assets(1)(3) | 79,955 | - | 79,955 | -44,651 | -16,129 | 19,175 | |||||||||||||||
Total | $ | 502,692 | $ | - | $ | 502,692 | $ | -176,755 | $ | -297,000 | $ | 28,937 | |||||||||
Liabilities: | |||||||||||||||||||||
Repurchase agreements(4) | $ | 4,449,665 | $ | - | $ | 4,449,665 | $ | - | $ | -4,449,417 | $ | 248 | |||||||||
Deposits received for | |||||||||||||||||||||
securities loaned(2)(6) | 831,830 | - | 831,830 | -132,104 | -643,038 | 56,688 | |||||||||||||||
Derivative liabilities(2)(3)(4) | 206,585 | - | 206,585 | -44,651 | -161,934 | - | |||||||||||||||
Total | $ | 5,488,080 | $ | - | $ | 5,488,080 | $ | -176,755 | $ | -5,254,389 | $ | 56,936 | |||||||||
31-Dec-12 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Deposits paid for securities | |||||||||||||||||||||
borrowed(1)(5) | $ | 407,331 | $ | - | $ | 407,331 | $ | -142,410 | $ | -259,490 | $ | 5,431 | |||||||||
Derivative assets(1)(3) | 14,734 | - | 14,734 | -5,176 | -8,427 | 1,131 | |||||||||||||||
Total | $ | 422,065 | $ | - | $ | 422,065 | $ | -147,586 | $ | -267,917 | $ | 6,562 | |||||||||
Liabilities: | |||||||||||||||||||||
Repurchase agreements(4) | $ | 4,454,661 | $ | - | $ | 4,454,661 | $ | - | $ | -4,454,659 | $ | 2 | |||||||||
Deposits received for | |||||||||||||||||||||
securities loaned(2)(6) | 735,720 | - | 735,720 | -142,410 | -554,400 | 38,910 | |||||||||||||||
Derivative liabilities(2)(3)(4) | 328,464 | - | 328,464 | -5,176 | -323,288 | - | |||||||||||||||
Total | $ | 5,518,845 | $ | - | $ | 5,518,845 | $ | -147,586 | $ | -5,332,347 | $ | 38,912 | |||||||||
(1)Net amounts presented in the consolidated balance sheet are reflected in the other assets line item. | |||||||||||||||||||||
(2)Net amounts presented in the consolidated balance sheet are reflected in the other liabilities line item. | |||||||||||||||||||||
(3)Excludes net accrued interest payable of $22.5 million and $14.1 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||
(4)The Company pledges available-for-sale and held-to-maturity securities as collateral for amounts due on repurchase agreements and derivative liabilities. The collateral pledged included available-for-sale securities at fair value and held-to-maturity securities at amortized cost for both September 30, 2013 and December 31, 2012. | |||||||||||||||||||||
(5)Included in the gross amounts of deposits paid for securities borrowed is $264.7 million and $133.8 million as of September 30, 2013 and December 31, 2012, respectively, transacted through a program with a clearing organization, which guarantees the return of cash to the Company. For presentation purposes, these amounts presented are based on the original counterparties to the Company’s master securities loan agreements. | |||||||||||||||||||||
(6)Included in the gross amounts of deposits received for securities loaned is $538.3 million and $419.6 million as of September 30, 2013 and December 31, 2012, respectively, transacted through a program with a clearing organization, which guarantees the return of securities to the Company. For presentation purposes, these amounts presented are based on the original counterparties to the Company’s master securities loan agreements. | |||||||||||||||||||||
New Accounting and Disclosure Guidance—Below is the new accounting and disclosure guidance that relates to activities in which the Company is engaged. | |||||||||||||||||||||
Disclosures about Offsetting Assets and Liabilities | |||||||||||||||||||||
In December 2011, the FASB amended the disclosure guidance about offsetting assets and liabilities. The amended disclosure guidance will enable users of the Company's financial statements to evaluate the effect or potential effect of netting arrangements on the Company's financial position. This includes the effect or potential effect of rights of setoff between recognized assets and recognized liabilities within the scope of amended disclosure guidance, such as derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The amended disclosure guidance became effective for annual and interim periods beginning on January 1, 2013 for the Company and was applied retrospectively for all comparative periods presented. The Company's disclosures reflect the adoption of the amended disclosure guidance in Financial Statement Descriptions and Related Accounting Policies section in Note 1—Organization, Basis of Presentation and Summary of Significant Accounting Policies. | |||||||||||||||||||||
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | |||||||||||||||||||||
In February 2013, the FASB amended the presentation guidance on the reporting of amounts reclassified out of accumulated other comprehensive income. The amended guidance does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the guidance amends the presentation of the amounts reclassified out of accumulated other comprehensive income by component. In addition, the amended guidance requires the presentation, either on the face of the statement where net income is presented or in the notes, of significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amended guidance became effective for annual and interim periods beginning on January 1, 2013 for the Company and was applied prospectively. The Company's disclosures reflect the adoption of the amended presentation guidance in Note 12—Shareholders' Equity. | |||||||||||||||||||||
Inclusion of the Fed Funds Effective Swap Rate as a Benchmark Interest Rate for Hedge Accounting Purposes | |||||||||||||||||||||
In July 2013, the FASB amended the derivatives and hedging accounting guidance. The amended guidance permits the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes under derivatives and hedging accounting requirements, in addition to U.S. Treasury and LIBOR. The amendments also remove the restriction on using different benchmark rates for similar hedges. Before the amendments, only U.S. Treasury and the LIBOR swap rate were considered benchmark interest rates in accordance with GAAP. The amendments became effective prospectively for qualifying new or re-designated hedging relationships entered into on or after July 17, 2013. The amended accounting guidance did not have a material impact on the Company's statement of financial condition, results of operation, or cash flows. | |||||||||||||||||||||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |||||||||||||||||||||
In July 2013, the FASB amended the presentation guidance on unrecognized tax benefits. The amended guidance requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except under certain circumstances. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The unrecognized tax benefit should also be presented in the financial statements as a liability if the tax law of the applicable jurisdiction does not require the Company to use, and the Company does not intend to use, the deferred tax asset to settle any additional income taxes. The amended presentation guidance will be effective for annual and interim periods beginning on January 1, 2014 for the Company and will be applied prospectively to unrecognized tax benefits that exist at that date. Retrospective application and early adoption is permitted. The adoption of the amended presentation guidance will not have a material impact on the Company's financial condition, results of operations, or cash flows. | |||||||||||||||||||||
Business_HeldForSale
Business Held-For-Sale | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Discontinued Operations and Disposal [Abstract] | ' | ||||||
Business Held-for-Sale | ' | ||||||
NOTE 2—BUSINESS HELD-FOR-SALE | |||||||
Exit of Market Making Business | |||||||
At the end of June 2013, the Company approved a plan to exit its market making business, and as a result the market making business' assets and liabilities were classified as held-for-sale. The table below summarizes the carrying amounts of the major classes of assets and liabilities of the market making business as of September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||
September 30, | December 31, | ||||||
2013(1) | 2012 | ||||||
Assets | |||||||
Cash and equivalents | $ | 9,336 | $ | 7,618 | |||
Trading securities | 97,548 | 101,252 | |||||
Property and equipment, net | 1,112 | 1,517 | |||||
Goodwill | - | 142,423 | |||||
Other intangibles, net | 21,161 | 21,898 | |||||
Other assets | 47,071 | 37,096 | |||||
Total assets | $ | 176,228 | $ | 311,804 | |||
Liabilities | |||||||
Other liabilities | 102,448 | 96,463 | |||||
Total liabilities | $ | 102,448 | $ | 96,463 | |||
-1 | Assets and liabilities as of September 30, 2013 are classified as held-for-sale and reflected in the other assets and other liabilities line items on the consolidated balance sheet, respectively. | ||||||
As a result of the Company's decision to exit the market making business, the goodwill associated with the market making business was impaired. For additional information on the impairment of goodwill, see Note 8–Goodwill. |
Operating_Interest_Income_and_
Operating Interest Income and Operating Interest Expense | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Disclosure - Operating Interest Income And Operating Interest Expense [Abstract] | ' | ||||||||||||||
Operating Interest Income and Operating Interest Expense | ' | ||||||||||||||
NOTE 3—OPERATING INTEREST INCOME AND OPERATING INTEREST EXPENSE | |||||||||||||||
The following table shows the components of operating interest income and operating interest expense (dollars in thousands): | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Operating interest income: | |||||||||||||||
Loans | $ | 96,365 | $ | 118,747 | $ | 305,222 | $ | 383,242 | |||||||
Available-for-sale securities | 68,470 | 82,661 | 199,029 | 286,647 | |||||||||||
Held-to-maturity securities | 64,486 | 61,923 | 183,819 | 175,574 | |||||||||||
Margin receivables | 56,073 | 55,465 | 164,459 | 158,873 | |||||||||||
Securities borrowed and other | 15,521 | 15,181 | 50,276 | 46,422 | |||||||||||
Total operating interest income | 300,915 | 333,977 | 902,805 | 1,050,758 | |||||||||||
Operating interest expense: | |||||||||||||||
Securities sold under agreements to repurchase | -37,431 | -40,136 | -111,144 | -121,373 | |||||||||||
FHLB advances and other borrowings | -17,152 | -24,153 | -51,183 | -74,979 | |||||||||||
Deposits | -3,306 | -5,885 | -9,680 | -20,838 | |||||||||||
Customer payables and other | -2,179 | -2,926 | -6,081 | -8,734 | |||||||||||
Total operating interest expense | -60,068 | -73,100 | -178,088 | -225,924 | |||||||||||
Net operating interest income | $ | 240,847 | $ | 260,877 | $ | 724,717 | $ | 824,834 |
Fair_Value_Disclosures
Fair Value Disclosures | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Fair Value Disclosures | ' | |||||||||||||||||
NOTE 4—FAIR VALUE DISCLOSURES | ||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company may use various valuation approaches, including market, income and/or cost approaches. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is a market-based measure considered from the perspective of a market participant. Accordingly, even when market assumptions are not readily available, the Company's own assumptions reflect those that market participants would use in pricing the asset or liability at the measurement date. The fair value measurement accounting guidance describes the following three levels used to classify fair value measurements: | ||||||||||||||||||
• Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible by the Company. | ||||||||||||||||||
• Level 2—Quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. | ||||||||||||||||||
• Level 3—Unobservable inputs that are significant to the fair value of the assets or liabilities. | ||||||||||||||||||
The availability of observable inputs can vary and in certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to a fair value measurement requires judgment and consideration of factors specific to the asset or liability. | ||||||||||||||||||
Recurring Fair Value Measurement Techniques | ||||||||||||||||||
U.S. Treasury Securities and Agency Debentures | ||||||||||||||||||
The fair value measurements of U.S. Treasury securities were classified as Level 1 of the fair value hierarchy as they were based on quoted market prices in active markets. The fair value measurements of agency debentures were classified as Level 2 of the fair value hierarchy as they were based on quoted market prices observable in the marketplace. | ||||||||||||||||||
Residential Mortgage-backed Securities | ||||||||||||||||||
The Company's residential mortgage-backed securities portfolio was comprised of agency mortgage-backed securities and CMOs, which represented the majority of the portfolio, and non-agency CMOs. Agency mortgage-backed securities and CMOs are guaranteed by U.S. government sponsored and federal agencies. All of the Company's non-agency CMOs were backed by first lien mortgages and were below investment grade or non-rated as of September 30, 2013. The weighted average coupon rates for the residential mortgage-backed securities as of September 30, 2013 are shown in the following table: | ||||||||||||||||||
Weighted Average Coupon Rate | ||||||||||||||||||
Agency mortgage-backed securities | 3.1 | % | ||||||||||||||||
Agency CMOs | 3.28 | % | ||||||||||||||||
Non-agency CMOs | 3.14 | % | ||||||||||||||||
The fair value of agency mortgage-backed securities was determined using a market approach with quoted market prices, recent market transactions and spread data for similar instruments. The fair value of agency CMOs was determined using market and income approaches with the Company's own trading activities for identical or similar instruments. Agency mortgage-backed securities and CMOs were categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||
Non-agency CMOs were valued using market and income approaches with market observable data, including recent market transactions when available. The valuations of non-agency CMOs reflect the Company's best estimate of what market participants would consider in pricing the financial instruments. The Company considers the price transparency for non-agency CMOs to be a key determinant of the degree of judgment involved in determining the fair value. As of September 30, 2013, the Company's non-agency CMOs were categorized in Level 3 of the fair value hierarchy. The Company's portfolio management group determines the fair value measurements using a discounted cash flow methodology for non-agency CMOs on a monthly basis with market observable data to the extent available. The fair value measurements, valuation techniques and level classification methodology are reviewed and compared to prior periods on a quarterly basis by management from the finance, credit, enterprise risk management and compliance departments. | ||||||||||||||||||
The significant inputs used in the fair value measurement of non-agency CMOs are yield, default rate, loss severity and prepayment rate. Significant changes in any of those inputs in isolation would result in a significant change in the fair value. Generally, an increase in the yield, default rate or loss severity in isolation would result in a decrease in the fair value, and an increase in the prepayment rate would result in an increase in the fair value. In addition, an increase in the assumption used for the prepayment rate generally will result in an increase in yield. | ||||||||||||||||||
The following table presents additional information about the underlying loans and significant inputs used in discounted cash flow methodologies for the valuation of non-agency CMOs that were categorized in Level 3 of the fair value hierarchy as of September 30, 2013: | ||||||||||||||||||
Weighted Average | Range | |||||||||||||||||
Underlying loans: | ||||||||||||||||||
Coupon rate | 2.86 | % | 2.72 | % | - | 6.28 | % | |||||||||||
Maturity (years) | 20 | 20 | - | 25 | ||||||||||||||
Significant inputs: | ||||||||||||||||||
Yield | 3 | % | 3 | % | - | 10 | % | |||||||||||
Default rate(1) | 32 | % | 3 | % | - | 100 | % | |||||||||||
Loss severity | 28 | % | 0 | % | - | 65 | % | |||||||||||
Prepayment rate | 13 | % | 4 | % | - | 39 | % | |||||||||||
(1)The default rate reflects the implied rate necessary to equate market price to the book yield given the market credit assumption. | ||||||||||||||||||
Other Debt Securities | ||||||||||||||||||
The fair value measurements of agency debt securities were determined using market and income approaches along with the Company's own trading activities for identical or similar instruments and were categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||
The Company's municipal bonds are revenue bonds issued by state and other local government agencies. The valuation of corporate bonds is impacted by the credit worthiness of the corporate issuer. All of the Company's municipal bonds and corporate bonds were rated investment grade as of September 30, 2013. These securities were valued using a market approach with pricing service valuations corroborated by recent market transactions for identical or similar bonds. Municipal bonds and corporate bonds were categorized in Level 2 of the fair value hierarchy. | ||||||||||||||||||
Derivative Instruments | ||||||||||||||||||
Interest rate swap and option contracts were valued with an income approach using pricing models that are commonly used by the financial services industry. The market observable inputs used in the pricing models include the swap curve, the volatility surface, and prime or overnight indexed swap basis from a financial data provider. The Company does not consider these models to involve significant judgment on the part of management, and the Company corroborated the fair value measurements with counterparty valuations. The Company's derivative instruments were categorized in Level 2 of the fair value hierarchy. The consideration of credit risk, the Company's or the counterparty's, did not result in an adjustment to the valuation of its derivative instruments in the periods presented. | ||||||||||||||||||
Securities Owned and Securities Sold, Not Yet Purchased | ||||||||||||||||||
Securities transactions entered into by broker-dealer subsidiaries are included in trading securities and securities sold, not yet purchased in the Company's fair value disclosures. For equity securities, the Company's definition of actively traded is based on average daily volume and other market trading statistics. The fair value of securities owned and securities sold, not yet purchased was determined using listed or quoted market prices and the majority were categorized in Level 1 of the fair value hierarchy. | ||||||||||||||||||
Nonrecurring Fair Value Measurement Techniques | ||||||||||||||||||
Loans Receivable and REO | ||||||||||||||||||
The Company records certain other assets at fair value on a nonrecurring basis: 1) one- to four-family and home equity loans in which the amount of the loan balance in excess of the estimated current value of the underlying property less estimated costs to sell has been charged-off; and 2) real estate acquired through physical possession of property or upon foreclosure that is carried at the lower of the property's carrying value or fair value, less estimated selling costs. | ||||||||||||||||||
Loans that have been delinquent for 180 days or in bankruptcy are charged-off based on the estimated current value of the underlying property less estimated selling costs and are classified as nonperforming loans. These loans continue to be reported as nonperforming unless they subsequently meet the requirements for being reported as performing loans. TDRs that are charged-off based on the estimated current value of the underlying property less estimated selling costs are classified as nonperforming loans at the time of modification and return to accrual status after six consecutive payments are made in accordance with the modified terms. Property valuations for these one- to four-family and home equity loans are based on the most recent “as is” property valuation data available, which may include appraisals, broker price opinions, prices for similar properties, automated valuation models or home price indices. Subsequent to the recording of an initial fair value measurement, these loans continue to be measured at fair value on a nonrecurring basis, utilizing the estimated value of the underlying property less estimated selling costs. These property valuations are updated on a monthly, quarterly or semi-annual basis depending on the type of valuation initially used. If the value of the underlying property has declined, an additional charge-off is recorded. If the value of the underlying property has increased, previously charged-off amounts are not reversed. If the valuation data obtained is significantly different from the valuation previously received, the Company orders additional property valuation data to corroborate or update the valuation. | ||||||||||||||||||
Property valuations for real estate acquired through physical possession of property or upon foreclosure are based on the lowest value of the most recent property valuation data available, which may include appraisals, listing prices or approved offer prices. Nonrecurring fair value measurements on one- to four-family and home equity loans and real estate owned were classified as Level 3 of the fair value hierarchy as the majority of the valuations included Level 3 inputs that were significant to the estimate of fair value. | ||||||||||||||||||
Real estate owned and loans receivable that have been subject to fair value measurement requirements are evaluated and reviewed on a quarterly basis in accordance with policies and procedures that were designed to be in compliance with guidance from the Company's regulators. These policies and procedures govern the frequency of the review, the use of acceptable valuation methods, and the consideration of estimated selling costs. | ||||||||||||||||||
The following table presents additional information about significant unobservable inputs used in the valuation of assets measured at fair value on a nonrecurring basis that were categorized in Level 3 of the fair value hierarchy as of September 30, 2013 (dollars in thousands): | ||||||||||||||||||
Unobservable Inputs | Average | Range | ||||||||||||||||
One- to four-family | Appraised value | $ | 387 | $ | 4 | - | $ | 2,500 | ||||||||||
Home equity | Appraised value | $ | 290 | $ | 9 | - | $ | 1,600 | ||||||||||
Real estate owned | Appraised value | $ | 285 | $ | 1 | - | $ | 1,163 | ||||||||||
Goodwill | ||||||||||||||||||
At the end of the second quarter of 2013, the Company decided to exit the market making business, and as a result evaluated the total goodwill allocated to the market making reporting unit for impairment. The Company valued the market making business by using a combination of expected present value of future cash flows of the business, a form of the income approach, and prices of comparable businesses, a form of the market approach, with significant unobservable inputs. The Company refined the estimated fair value of the market making reporting unit using the expected sale structure of the market making business. As a result of the evaluation, it was determined that the entire carrying amount of goodwill allocated to the market making reporting unit was impaired, and the Company recognized $142.4 million impairment of goodwill during the second quarter of 2013. | ||||||||||||||||||
Recurring and Nonrecurring Fair Value Measurements | ||||||||||||||||||
Assets and liabilities measured at fair value at September 30, 2013 and December 31, 2012 are summarized in the following tables (dollars in thousands): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
September 30, 2013: | ||||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||||
Assets | ||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | - | $ | 12,222,556 | $ | - | $ | 12,222,556 | ||||||||||
Non-agency CMOs | - | - | 14,012 | 14,012 | ||||||||||||||
Total residential mortgage-backed securities | - | 12,222,556 | 14,012 | 12,236,568 | ||||||||||||||
Investment securities: | ||||||||||||||||||
Agency debentures | - | 318,354 | - | 318,354 | ||||||||||||||
Agency debt securities | - | 675,531 | - | 675,531 | ||||||||||||||
Municipal bonds | - | 46,550 | - | 46,550 | ||||||||||||||
Corporate bonds | - | 4,455 | - | 4,455 | ||||||||||||||
Total investment securities | - | 1,044,890 | - | 1,044,890 | ||||||||||||||
Total available-for-sale securities | - | 13,267,446 | 14,012 | 13,281,458 | ||||||||||||||
Other assets: | ||||||||||||||||||
Derivative assets(1) | - | 79,955 | - | 79,955 | ||||||||||||||
Deposits with clearing organizations(2) | 34,000 | - | - | 34,000 | ||||||||||||||
Held-for-sale assets - trading securities(3) | 96,393 | 1,155 | 97,548 | |||||||||||||||
Total other assets measured at fair value on a | ||||||||||||||||||
recurring basis | 130,393 | 81,110 | - | 211,503 | ||||||||||||||
Total assets measured at fair value on a | ||||||||||||||||||
recurring basis(4) | $ | 130,393 | $ | 13,348,556 | $ | 14,012 | $ | 13,492,961 | ||||||||||
Liabilities | ||||||||||||||||||
Derivative liabilities(1) | $ | - | $ | 206,585 | $ | - | $ | 206,585 | ||||||||||
Held-for-sale liabilities - securities sold, not yet purchased(3) | 93,147 | 122 | - | 93,269 | ||||||||||||||
Total liabilities measured at fair value on a | ||||||||||||||||||
recurring basis(4) | $ | 93,147 | $ | 206,707 | $ | - | $ | 299,854 | ||||||||||
Nonrecurring fair value measurements: | ||||||||||||||||||
Loans receivable: | ||||||||||||||||||
One- to four-family | $ | - | $ | - | $ | 213,972 | $ | 213,972 | ||||||||||
Home equity | - | - | 46,718 | 46,718 | ||||||||||||||
Total loans receivable(5) | - | - | 260,690 | 260,690 | ||||||||||||||
REO(5) | - | - | 45,060 | 45,060 | ||||||||||||||
Total assets measured at fair value on | ||||||||||||||||||
a nonrecurring basis(6) | $ | - | $ | - | $ | 305,750 | $ | 305,750 | ||||||||||
(1)All derivative assets and liabilities are interest rate contracts. Information related to derivative instruments is detailed in Note 7─Accounting for Derivative Instruments and Hedging Activities. | ||||||||||||||||||
(2)Represents U.S. Treasury securities held by a broker-dealer subsidiary. | ||||||||||||||||||
(3)Assets and liabilities of the market making business were reclassified as held-for-sale, and are presented in the other assets and other liabilities line items, respectively, as of September 30, 2013 on the consolidated balance sheet. Information related to the classification is detailed in Note 2─Business Held-for-Sale. | ||||||||||||||||||
(4)Assets and liabilities measured at fair value on a recurring basis represented 30% and 1% of the Company's total assets and total liabilities, respectively. | ||||||||||||||||||
(5)Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet as of September 30, 2013, and for which a fair value measurement was recorded during the period. | ||||||||||||||||||
(6)Goodwill allocated to the market making reporting unit with a carrying amount of $142.4 million was written down to zero during the nine months ended September 30, 2013 and categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
December 31, 2012: | ||||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||||
Assets | ||||||||||||||||||
Trading securities | $ | 100,259 | $ | 1,011 | $ | - | $ | 101,270 | ||||||||||
Available-for-sale securities: | ||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||
Agency mortgage-backed securities and CMOs | - | 12,097,298 | - | 12,097,298 | ||||||||||||||
Non-agency CMOs | - | 185,668 | 49,495 | 235,163 | ||||||||||||||
Total residential mortgage-backed securities | - | 12,282,966 | 49,495 | 12,332,461 | ||||||||||||||
Investment securities: | ||||||||||||||||||
Agency debentures | - | 527,996 | - | 527,996 | ||||||||||||||
Agency debt securities | - | 546,762 | - | 546,762 | ||||||||||||||
Municipal bonds | - | 31,346 | - | 31,346 | ||||||||||||||
Corporate bonds | - | 4,455 | - | 4,455 | ||||||||||||||
Total investment securities | - | 1,110,559 | - | 1,110,559 | ||||||||||||||
Total available-for-sale securities | - | 13,393,525 | 49,495 | 13,443,020 | ||||||||||||||
Other assets: | ||||||||||||||||||
Derivative assets(1) | - | 14,890 | - | 14,890 | ||||||||||||||
Deposits with clearing organizations(2) | 32,000 | - | - | 32,000 | ||||||||||||||
Total other assets measured at fair value on a | ||||||||||||||||||
recurring basis | 32,000 | 14,890 | - | 46,890 | ||||||||||||||
Total assets measured at fair value on a | ||||||||||||||||||
recurring basis(3) | $ | 132,259 | $ | 13,409,426 | $ | 49,495 | $ | 13,591,180 | ||||||||||
Liabilities | ||||||||||||||||||
Derivative liabilities(1) | $ | - | $ | 328,504 | $ | - | $ | 328,504 | ||||||||||
Securities sold, not yet purchased | 87,088 | 489 | - | 87,577 | ||||||||||||||
Total liabilities measured at fair value on a | ||||||||||||||||||
recurring basis(3) | $ | 87,088 | $ | 328,993 | $ | - | $ | 416,081 | ||||||||||
Nonrecurring fair value measurements:(4) | ||||||||||||||||||
Loans receivable: | ||||||||||||||||||
One- to four-family | $ | - | $ | - | $ | 752,008 | $ | 752,008 | ||||||||||
Home equity | - | - | 90,663 | 90,663 | ||||||||||||||
Total loans receivable | - | - | 842,671 | 842,671 | ||||||||||||||
REO | - | - | 75,885 | 75,885 | ||||||||||||||
Total assets measured at fair value on | ||||||||||||||||||
a nonrecurring basis | $ | - | $ | - | $ | 918,556 | $ | 918,556 | ||||||||||
(1)The majority of derivative assets and liabilities are interest rate contracts. Information related to derivative instruments is detailed in Note 7─Accounting for Derivative Instruments and Hedging Activities. | ||||||||||||||||||
(2)Represents U.S. Treasury securities held by a broker-dealer subsidiary. | ||||||||||||||||||
(3)Assets and liabilities measured at fair value on a recurring basis represented 29% and 1% of the Company's total assets and total liabilities, respectively. | ||||||||||||||||||
(4)Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet as of December 31, 2012, and for which a fair value measurement was recorded during the period. | ||||||||||||||||||
The following table presents the losses associated with the assets measured at fair value on a nonrecurring basis during the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
One- to four-family | $ | 10,107 | $ | 32,465 | $ | 34,480 | $ | 167,220 | ||||||||||
Home equity | 10,736 | 70,999 | 46,785 | 265,764 | ||||||||||||||
Total losses on loans receivable measured at fair value | $ | 20,843 | $ | 103,464 | $ | 81,265 | $ | 432,984 | ||||||||||
(Gains) losses on REO measured at fair value | $ | -1,925 | $ | 3,016 | $ | -166 | $ | 11,033 | ||||||||||
Losses on goodwill measured at fair value | $ | - | $ | - | $ | 142,423 | $ | - | ||||||||||
Transfers Between Levels 1 and 2 | ||||||||||||||||||
For assets and liabilities measured at fair value on a recurring basis, the Company's transfers between levels of the fair value hierarchy are deemed to have occurred at the beginning of the reporting period on a quarterly basis. The Company's transfers of securities owned and securities sold, not yet purchased between Level 1 and 2 are generally driven by trading activities of those securities during the period. The Company had no material transfers between Level 1 and 2 during the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||||||
Level 3 Rollforward for Recurring Fair Value Measurements | ||||||||||||||||||
Level 3 assets and liabilities include instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. While the Company's fair value estimates of Level 3 instruments utilized observable inputs where available, the valuation included significant management judgment in determining the relevance and reliability of market information considered. | ||||||||||||||||||
The following tables present additional information about Level 3 assets and liabilities measured at fair value on a recurring basis for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||
Opening balance, July 1, 2013 | $ | 13,793 | ||||||||||||||||
Losses recognized in earnings(1) | -586 | |||||||||||||||||
Net gains recognized in other comprehensive income(2) | 1,401 | |||||||||||||||||
Settlements | -596 | |||||||||||||||||
Closing balance, September 30, 2013 | $ | 14,012 | ||||||||||||||||
(1)Losses recognized in earnings were related to instruments held at September 30, 2013 and are reported in the net impairment line item. | ||||||||||||||||||
(2)Net gains recognized in other comprehensive income are reported in the net change from available-for-sale securities line item. | ||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||
Opening balance, July 1, 2012 | $ | 90,594 | ||||||||||||||||
Losses recognized in earnings(1) | -2,318 | |||||||||||||||||
Net gains recognized in other comprehensive income(2) | 7,773 | |||||||||||||||||
Settlements | -11,965 | |||||||||||||||||
Transfer in to Level 3(3)(4) | 89,357 | |||||||||||||||||
Transfer out of Level 3(3)(5) | -31,292 | |||||||||||||||||
Closing balance, September 30, 2012 | $ | 142,149 | ||||||||||||||||
(1)Losses recognized in earnings were related to instruments held at September 30, 2012 and are reported in the net impairment line item. | ||||||||||||||||||
(2)Net gains recognized in other comprehensive income are reported in the net change from available-for-sale securities line item. | ||||||||||||||||||
(3)The Company's transfers in and out of Level 3 are as of the beginning of the reporting period on a quarterly basis. | ||||||||||||||||||
(4)Non-agency CMOs transferred in to Level 3 due to a lack of observable market data, resulting from a decrease in market activity for the securities. | ||||||||||||||||||
(5)Non-agency CMOs transferred out of Level 3 because observable market data became available for those securities. | ||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||
Opening balance, January 1, 2013 | $ | 49,495 | ||||||||||||||||
Losses recognized in earnings(1) | -2,331 | |||||||||||||||||
Net gains recognized in other comprehensive income(2) | 4,160 | |||||||||||||||||
Sales | -34,949 | |||||||||||||||||
Settlements | -2,363 | |||||||||||||||||
Closing balance, September 30, 2013 | $ | 14,012 | ||||||||||||||||
(1)Losses recognized in earnings were related to instruments held at September 30, 2013 and are reported in the net impairment line item. | ||||||||||||||||||
(2)Net gains recognized in other comprehensive income are reported in the net change from available-for-sale securities line item. | ||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||
Opening balance, January 1, 2012 | $ | 97,106 | ||||||||||||||||
Losses recognized in earnings(1) | -8,920 | |||||||||||||||||
Net gains recognized in other comprehensive income(2) | 12,217 | |||||||||||||||||
Settlements | -19,246 | |||||||||||||||||
Transfers in to Level 3(3)(4) | 177,244 | |||||||||||||||||
Transfers out of Level 3(3)(5) | -116,252 | |||||||||||||||||
Closing balance, September 30, 2012 | $ | 142,149 | ||||||||||||||||
(1)Losses recognized in earnings were related to instruments held at September 30, 2012 and are reported in the net impairment line item. | ||||||||||||||||||
(2)Net gains recognized in other comprehensive income are reported in the net change from available-for-sale securities line item. | ||||||||||||||||||
(3)The Company's transfers in and out of Level 3 are as of the beginning of the reporting period on a quarterly basis. | ||||||||||||||||||
(4)Non-agency CMOs transferred in to Level 3 due to a lack of observable market data, resulting from a decrease in market activity for the securities. | ||||||||||||||||||
(5)Non-agency CMOs transferred out of Level 3 because observable market data became available for those securities. | ||||||||||||||||||
The Company's transfers of certain non-agency CMOs in and out of Level 3 are generally driven by changes in price transparency for the securities. Financial instruments for which actively quoted prices or pricing parameters are available will have a higher degree of price transparency than financial instruments that are thinly traded or not quoted. As of September 30, 2013, less than 1% of the Company's total assets and none of its total liabilities represented instruments measured at fair value on a recurring basis categorized as Level 3. | ||||||||||||||||||
Fair Value of Financial Instruments Not Carried at Fair Value | ||||||||||||||||||
The following table summarizes the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not carried at fair value on the consolidated balance sheet at September 30, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||
Assets | ||||||||||||||||||
Cash and equivalents | $ | 1,796,181 | $ | 1,796,181 | $ | - | $ | - | $ | 1,796,181 | ||||||||
Cash required to be segregated under | ||||||||||||||||||
federal or other regulations | $ | 738,221 | $ | 738,221 | $ | - | $ | - | $ | 738,221 | ||||||||
Held-to-maturity securities: | ||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 8,255,442 | $ | - | $ | 8,285,373 | $ | - | $ | 8,285,373 | ||||||||
Agency debentures | 163,448 | - | 168,290 | - | 168,290 | |||||||||||||
Agency debt securities | 1,525,263 | - | 1,523,710 | - | 1,523,710 | |||||||||||||
Total held-to-maturity securities | $ | 9,944,153 | $ | - | $ | 9,977,373 | $ | - | $ | 9,977,373 | ||||||||
Margin receivables | $ | 6,188,708 | $ | - | $ | 6,188,708 | $ | - | $ | 6,188,708 | ||||||||
Loans receivable, net: | ||||||||||||||||||
One- to four-family | $ | 4,619,656 | $ | - | $ | - | $ | 3,903,292 | $ | 3,903,292 | ||||||||
Home equity | 3,324,010 | - | - | 3,006,621 | 3,006,621 | |||||||||||||
Consumer and other | 620,948 | - | - | 635,279 | 635,279 | |||||||||||||
Total loans receivable, net(1) | $ | 8,564,614 | $ | - | $ | - | $ | 7,545,192 | $ | 7,545,192 | ||||||||
Investment in FHLB stock | $ | 61,400 | $ | - | $ | $ | 61,400 | $ | 61,400 | |||||||||
Liabilities | ||||||||||||||||||
Deposits | $ | 25,869,797 | $ | - | $ | 25,870,010 | $ | - | $ | 25,870,010 | ||||||||
Securities sold under agreement to repurchase | $ | 4,449,665 | $ | - | $ | 4,480,874 | $ | - | $ | 4,480,874 | ||||||||
Customer payables | $ | 5,830,257 | $ | - | $ | 5,830,257 | $ | - | $ | 5,830,257 | ||||||||
FHLB advances and other borrowings | $ | 1,285,011 | $ | - | $ | 935,296 | $ | 210,733 | $ | 1,146,029 | ||||||||
Corporate debt | $ | 1,767,749 | $ | - | $ | 1,903,587 | $ | - | $ | 1,903,587 | ||||||||
(1)The carrying value of loans receivable, net includes the allowance for loan losses of $458.9 million and loans that are valued at fair value on a nonrecurring basis as of September 30, 2013. | ||||||||||||||||||
31-Dec-12 | ||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||
Assets | ||||||||||||||||||
Cash and equivalents | $ | 2,761,494 | $ | 2,761,494 | $ | - | $ | - | $ | 2,761,494 | ||||||||
Cash required to be segregated under | ||||||||||||||||||
federal or other regulations | $ | 376,898 | $ | 376,898 | $ | - | $ | - | $ | 376,898 | ||||||||
Held-to-maturity securities: | ||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 7,887,555 | $ | - | $ | 8,182,064 | $ | - | $ | 8,182,064 | ||||||||
Agency debentures | 163,434 | - | 169,769 | - | 169,769 | |||||||||||||
Agency debt securities | 1,488,959 | - | 1,558,663 | - | 1,558,663 | |||||||||||||
Total held-to-maturity securities | $ | 9,539,948 | $ | - | $ | 9,910,496 | $ | - | $ | 9,910,496 | ||||||||
Margin receivables | $ | 5,804,041 | $ | - | $ | 5,804,041 | $ | - | $ | 5,804,041 | ||||||||
Loans receivable, net: | ||||||||||||||||||
One- to four-family | $ | 5,281,702 | $ | - | $ | - | $ | 4,561,821 | $ | 4,561,821 | ||||||||
Home equity | 4,002,486 | - | - | 3,551,357 | 3,551,357 | |||||||||||||
Consumer and other | 814,535 | - | - | 838,721 | 838,721 | |||||||||||||
Total loans receivable, net(1) | $ | 10,098,723 | $ | - | $ | - | $ | 8,951,899 | $ | 8,951,899 | ||||||||
Investment in FHLB stock | $ | 67,400 | $ | - | $ | - | $ | 67,400 | $ | 67,400 | ||||||||
Liabilities | ||||||||||||||||||
Deposits | $ | 28,392,552 | $ | - | $ | 28,394,400 | $ | - | $ | 28,394,400 | ||||||||
Securities sold under agreement to repurchase | $ | 4,454,661 | $ | - | $ | 4,493,463 | $ | - | $ | 4,493,463 | ||||||||
Customer payables | $ | 4,964,922 | $ | - | $ | 4,964,922 | $ | - | $ | 4,964,922 | ||||||||
FHLB advances and other borrowings | $ | 1,260,916 | $ | - | $ | 926,750 | $ | 196,765 | $ | 1,123,515 | ||||||||
Corporate debt | $ | 1,764,982 | $ | - | $ | 1,837,736 | $ | - | $ | 1,837,736 | ||||||||
(1)The carrying value of loans receivable, net includes the allowance for loan loss of $480.7 million and loans that are valued at fair value on a nonrecurring basis as of December 31, 2012. | ||||||||||||||||||
The fair value measurement techniques for financial instruments not carried at fair value on the consolidated balance sheet at September 30, 2013 and December 31, 2012 are summarized as follows: | ||||||||||||||||||
Cash and equivalents, cash required to be segregated under federal or other regulations, margin receivables and customer payables—Fair value is estimated to be carrying value. | ||||||||||||||||||
Held-to-maturity securities—The held-to-maturity securities portfolio included agency mortgage-backed securities and CMOs, agency debentures, and agency debt securities. The fair value of agency mortgage-backed securities is determined using market and income approaches with quoted market prices, recent market transactions and spread data for similar instruments. The fair value of agency CMOs and agency debt securities is determined using market and income approaches with the Company's own trading activities for identical or similar instruments. The fair value of agency debentures is based on quoted market prices that were derived from assumptions observable in the marketplace. | ||||||||||||||||||
Loans receivable, net—Fair value is estimated using a discounted cash flow model. Loans are differentiated based on their individual portfolio characteristics, such as product classification, loan category, pricing features and remaining maturity. Assumptions for expected losses, prepayments and discount rates are adjusted to reflect the individual characteristics of the loans, such as credit risk, coupon, term, and payment characteristics, as well as the secondary market conditions for these types of loans. There was limited or no observable market data for the home equity and one- to four-family loan portfolios, which indicates that the market for these types of loans is considered to be inactive. Given the limited market data, these fair value measurements cannot be determined with precision and changes in the underlying assumptions used, including discount rates, could significantly affect the results of current or future fair value estimates. In addition, the amount that would be realized in a forced liquidation, an actual sale or immediate settlement could be significantly lower than both the carrying value and the estimated fair value of the portfolio. | ||||||||||||||||||
Investment in FHLB stock—FHLB stock is carried at cost, which is considered to be a reasonable estimate of fair value. | ||||||||||||||||||
Deposits—Fair value is the amount payable on demand at the reporting date for sweep deposits, complete savings deposits, other money market and savings deposits and checking deposits. For certificates of deposit and brokered certificates of deposit, fair value is estimated by discounting future cash flows using discount factors derived from current observable rates implied for other similar instruments with similar remaining maturities. | ||||||||||||||||||
Securities sold under agreements to repurchase—Fair value is determined by discounting future cash flows using discount factors derived from current observable rates implied for other similar instruments with similar remaining maturities. | ||||||||||||||||||
FHLB advances and other borrowings—Fair value for FHLB advances is estimated by discounting future cash flows using discount factors derived from current observable rates implied for similar instruments with similar remaining maturities. For subordinated debentures, fair value is estimated by discounting future cash flows at the rate implied by dealer pricing quotes. For margin collateral, overnight and other short-term borrowings, fair value approximates carrying value. | ||||||||||||||||||
Corporate debt—Fair value is estimated using dealer pricing quotes. The fair value of the non-interest-bearing convertible debentures is directly correlated to the intrinsic value of the Company's underlying stock. As the price of the Company's stock increases relative to the conversion price, the fair value of the convertible debentures increases. | ||||||||||||||||||
AvailableforSale_and_HeldtoMat
Available-for-Sale and Held-to-Maturity Securities | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Disclosure - Available-For-Sale And Held-To-Maturity Securities [Abstract] | ' | ||||||||||||||||||||
Available-for-Sale And Held-to-Maturity Securities | ' | ||||||||||||||||||||
NOTE 5—AVAILABLE-FOR-SALE AND HELD-TO-MATURITY SECURITIES | |||||||||||||||||||||
The amortized cost and fair value of available-for-sale and held-to-maturity securities at September 30, 2013 and December 31, 2012 are shown in the following tables (dollars in thousands): | |||||||||||||||||||||
Amortized Cost | Gross Unrealized / Unrecognized Gains | Gross Unrealized / Unrecognized Losses | Fair Value | ||||||||||||||||||
September 30, 2013: | |||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 12,380,442 | $ | 90,647 | $ | -248,533 | $ | 12,222,556 | |||||||||||||
Non-agency CMOs | 18,579 | 1,580 | -6,147 | 14,012 | |||||||||||||||||
Total residential mortgage-backed securities | 12,399,021 | 92,227 | -254,680 | 12,236,568 | |||||||||||||||||
Investment securities: | |||||||||||||||||||||
Agency debentures | 358,392 | - | -40,038 | 318,354 | |||||||||||||||||
Agency debt securities | 660,917 | 19,205 | -4,591 | 675,531 | |||||||||||||||||
Municipal bonds | 49,639 | - | -3,089 | 46,550 | |||||||||||||||||
Corporate bonds | 5,479 | - | -1,024 | 4,455 | |||||||||||||||||
Total investment securities | 1,074,427 | 19,205 | -48,742 | 1,044,890 | |||||||||||||||||
Total available-for-sale securities | $ | 13,473,448 | $ | 111,432 | $ | -303,422 | $ | 13,281,458 | |||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 8,255,442 | $ | 130,073 | $ | -100,142 | $ | 8,285,373 | |||||||||||||
Investment securities: | |||||||||||||||||||||
Agency debentures | 163,448 | 4,842 | - | 168,290 | |||||||||||||||||
Agency debt securities | 1,525,263 | 20,350 | -21,903 | 1,523,710 | |||||||||||||||||
Total investment securities | 1,688,711 | 25,192 | -21,903 | 1,692,000 | |||||||||||||||||
Total held-to-maturity securities | $ | 9,944,153 | $ | 155,265 | $ | -122,045 | $ | 9,977,373 | |||||||||||||
December 31, 2012: | |||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 11,881,185 | $ | 232,905 | $ | -16,792 | $ | 12,097,298 | |||||||||||||
Non-agency CMOs | 260,064 | 4,362 | -29,263 | 235,163 | |||||||||||||||||
Total residential mortgage-backed securities | 12,141,249 | 237,267 | -46,055 | 12,332,461 | |||||||||||||||||
Investment securities: | |||||||||||||||||||||
Agency debentures | 515,990 | 12,434 | -428 | 527,996 | |||||||||||||||||
Agency debt securities | 525,408 | 21,354 | - | 546,762 | |||||||||||||||||
Municipal bonds | 30,235 | 1,111 | - | 31,346 | |||||||||||||||||
Corporate bonds | 5,478 | - | -1,023 | 4,455 | |||||||||||||||||
Total investment securities | 1,077,111 | 34,899 | -1,451 | 1,110,559 | |||||||||||||||||
Total available-for-sale securities | $ | 13,218,360 | $ | 272,166 | $ | -47,506 | $ | 13,443,020 | |||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 7,887,555 | $ | 301,686 | $ | -7,177 | $ | 8,182,064 | |||||||||||||
Investment securities: | |||||||||||||||||||||
Agency debentures | 163,434 | 6,335 | - | 169,769 | |||||||||||||||||
Agency debt securities | 1,488,959 | 69,705 | -1 | 1,558,663 | |||||||||||||||||
Total investment securities | 1,652,393 | 76,040 | -1 | 1,728,432 | |||||||||||||||||
Total held-to-maturity securities | $ | 9,539,948 | $ | 377,726 | $ | -7,178 | $ | 9,910,496 | |||||||||||||
Contractual Maturities | |||||||||||||||||||||
The contractual maturities of all available-for-sale and held-to-maturity debt securities at September 30, 2013 are shown below (dollars in thousands): | |||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Due within one year | $ | 1,788 | $ | 1,794 | |||||||||||||||||
Due within one to five years | 61,324 | 62,567 | |||||||||||||||||||
Due within five to ten years | 1,380,016 | 1,362,186 | |||||||||||||||||||
Due after ten years | 12,030,320 | 11,854,911 | |||||||||||||||||||
Total available-for-sale securities | $ | 13,473,448 | $ | 13,281,458 | |||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||
Due within one year | $ | 55 | $ | 55 | |||||||||||||||||
Due within one to five years | 685,762 | 715,461 | |||||||||||||||||||
Due within five to ten years | 2,576,559 | 2,612,245 | |||||||||||||||||||
Due after ten years | 6,681,777 | 6,649,612 | |||||||||||||||||||
Total held-to-maturity securities | $ | 9,944,153 | $ | 9,977,373 | |||||||||||||||||
The Company pledged $2.2 billion and $2.8 billion at September 30, 2013 and December 31, 2012, respectively, of available-for-sale securities and $3.2 billion and $2.9 billion at September 30, 2013 and December 31, 2012, respectively, of held-to-maturity securities as collateral for repurchase agreements, derivatives and other purposes. | |||||||||||||||||||||
Investments with Unrecognized or Unrealized Losses | |||||||||||||||||||||
The following tables show the fair value and unrealized or unrecognized losses on available-for-sale and held-to-maturity securities, aggregated by investment category, and the length of time that individual securities have been in a continuous unrealized or unrecognized loss position at September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||
Fair Value | Unrealized / Unrecognized Losses | Fair Value | Unrealized / Unrecognized Losses | Fair Value | Unrealized / Unrecognized Losses | ||||||||||||||||
September 30, 2013: | |||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed | |||||||||||||||||||||
securities and CMOs | $ | 5,634,999 | $ | -240,105 | $ | 556,432 | $ | -8,428 | $ | 6,191,431 | $ | -248,533 | |||||||||
Non-agency CMOs | - | - | 11,811 | -6,147 | 11,811 | -6,147 | |||||||||||||||
Investment securities: | |||||||||||||||||||||
Agency debentures | 318,355 | -40,038 | - | - | 318,355 | -40,038 | |||||||||||||||
Agency debt securities | 167,591 | -4,591 | - | - | 167,591 | -4,591 | |||||||||||||||
Municipal bonds | 46,549 | -3,089 | - | - | 46,549 | -3,089 | |||||||||||||||
Corporate bonds | - | - | 4,455 | -1,024 | 4,455 | -1,024 | |||||||||||||||
Total temporarily impaired | |||||||||||||||||||||
available-for-sale securities | $ | 6,167,494 | $ | -287,823 | $ | 572,698 | $ | -15,599 | $ | 6,740,192 | $ | -303,422 | |||||||||
Held-to-maturity securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed | |||||||||||||||||||||
securities and CMOs | $ | 3,557,145 | $ | -97,546 | $ | 134,198 | $ | -2,596 | $ | 3,691,343 | $ | -100,142 | |||||||||
Agency debt securities | 942,536 | -21,903 | - | - | 942,536 | -21,903 | |||||||||||||||
Total temporarily impaired | |||||||||||||||||||||
held-to-maturity securities | $ | 4,499,681 | $ | -119,449 | $ | 134,198 | $ | -2,596 | $ | 4,633,879 | $ | -122,045 | |||||||||
December 31, 2012: | |||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed | |||||||||||||||||||||
securities and CMOs | $ | 2,588,947 | $ | -16,680 | $ | 16,337 | $ | -112 | $ | 2,605,284 | $ | -16,792 | |||||||||
Non-agency CMOs | - | - | 198,635 | -29,263 | 198,635 | -29,263 | |||||||||||||||
Investment securities: | |||||||||||||||||||||
Agency debentures | 62,786 | -428 | - | - | 62,786 | -428 | |||||||||||||||
Corporate bonds | - | - | 4,455 | -1,023 | 4,455 | -1,023 | |||||||||||||||
Total temporarily impaired | |||||||||||||||||||||
available-for-sale securities | $ | 2,651,733 | $ | -17,108 | $ | 219,427 | $ | -30,398 | $ | 2,871,160 | $ | -47,506 | |||||||||
Held-to-maturity securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed | |||||||||||||||||||||
securities and CMOs | $ | 1,240,008 | $ | -6,937 | $ | 2,427 | $ | -240 | $ | 1,242,435 | $ | -7,177 | |||||||||
Agency debt securities | 84 | -1 | - | - | 84 | -1 | |||||||||||||||
Total temporarily impaired | |||||||||||||||||||||
held-to-maturity securities | $ | 1,240,092 | $ | -6,938 | $ | 2,427 | $ | -240 | $ | 1,242,519 | $ | -7,178 | |||||||||
The Company does not believe that any individual unrealized loss in the available-for-sale or unrecognized loss in the held-to-maturity portfolio as of September 30, 2013 represents a credit loss. The credit loss component is the difference between the security's amortized cost basis and the present value of its expected future cash flows, and is recognized in earnings. The noncredit loss component is the difference between the present value of its expected future cash flows and the fair value and is recognized through other comprehensive income (loss). The Company assessed whether it intends to sell, or whether it is more likely than not that the Company will be required to sell a security before recovery of its amortized cost basis. For debt securities that are considered other-than-temporarily impaired and that the Company does not intend to sell as of the balance sheet date and will not be required to sell prior to recovery of its amortized cost basis, the Company determines the amount of the impairment that is related to credit and the amount due to all other factors. | |||||||||||||||||||||
The majority of the unrealized or unrecognized losses on mortgage-backed securities are attributable to changes in interest rates and a re-pricing of risk in the market. Agency mortgage-backed securities and CMOs, agency debentures and agency debt securities are guaranteed by U.S. government sponsored and federal agencies. Municipal bonds and corporate bonds are evaluated by reviewing the credit-worthiness of the issuer and general market conditions. The Company does not intend to sell the securities in an unrealized or unrecognized loss position as of the balance sheet date and it is not more likely than not that the Company will be required to sell the debt securities before the anticipated recovery of its remaining amortized cost of the securities in an unrealized or unrecognized loss position at September 30, 2013. | |||||||||||||||||||||
The majority of the Company's available-for-sale and held-to-maturity portfolio consists of residential mortgage-backed securities. For residential mortgage-backed securities, the Company calculates the credit portion of OTTI by comparing the present value of the expected future cash flows with the amortized cost basis of the security. The expected future cash flows are determined using the remaining contractual cash flows adjusted for future credit losses. The estimate of expected future credit losses includes the following assumptions: 1) expected default rates based on current delinquency trends, foreclosure statistics of the underlying mortgages and loan documentation type; 2) expected loss severity based on the underlying loan characteristics, including loan-to-value, origination vintage and geography; and 3) expected loan prepayments and principal reduction based on current experience and existing market conditions that may impact the future rate of prepayments. The expected cash flows of the security are then discounted at the interest rate used to recognize interest income on the security to arrive at the present value amount. | |||||||||||||||||||||
Within the securities portfolio, the highest concentration of credit risk is the non-agency CMO portfolio. As of September 30, 2013, the Company held approximately $18.6 million in amortized cost of non-agency CMO securities that had been other-than-temporarily impaired as a result of deterioration in the expected credit performance of the underlying loans in the securities. The following table presents a summary of the significant inputs considered for securities that were other-than-temporarily impaired as of September 30, 2013: | |||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Weighted Average | Range | ||||||||||||||||||||
Default rate(1) | 4 | % | 2 | % | - | 5 | % | ||||||||||||||
Loss severity | 48 | % | 45 | % | - | 50 | % | ||||||||||||||
Prepayment rate | 8 | % | 4 | % | - | 10 | % | ||||||||||||||
(1)Represents the expected default rate for the next twelve months. | |||||||||||||||||||||
The following table presents a roll forward for the three and nine months ended September 30, 2013 and 2012 of the credit loss component on debt securities held by the Company that had a noncredit loss recognized in other comprehensive income (loss) and had a credit loss recognized in earnings (dollars in thousands): | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Credit loss balance, beginning of period | $ | 165,074 | $ | 211,746 | $ | 186,722 | $ | 202,945 | |||||||||||||
Additions: | |||||||||||||||||||||
Subsequent credit impairment | 586 | 2,395 | 2,331 | 11,196 | |||||||||||||||||
Securities sold | - | -12,954 | -23,393 | -12,954 | |||||||||||||||||
Credit loss balance, end of period(1) | $ | 165,660 | $ | 201,187 | $ | 165,660 | $ | 201,187 | |||||||||||||
(1)The credit loss balance at September 30, 2013 included $120.8 million of credit losses associated with debt securities that have been factored to zero, but the Company still holds legal title to these securities until maturity or until they are sold. | |||||||||||||||||||||
The following table shows the components of net impairment for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Other-than-temporary impairment ("OTTI") | $ | - | $ | -2,052 | $ | -632 | $ | -16,113 | |||||||||||||
Less: noncredit portion of OTTI recognized into | |||||||||||||||||||||
(out of) other comprehensive income (loss) (before tax) | -586 | -343 | -1,699 | 4,917 | |||||||||||||||||
Net impairment | $ | -586 | $ | -2,395 | $ | -2,331 | $ | -11,196 | |||||||||||||
Gains on Loans and Securities, Net | |||||||||||||||||||||
The detailed components of the gains on loans and securities, net line item on the consolidated statement of income (loss) for the three and nine months ended September 30, 2013 and 2012 are as follows (dollars in thousands): | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Gains (losses) on loans, net | $ | -554 | $ | 217 | $ | -842 | $ | 379 | |||||||||||||
Gains on securities, net | |||||||||||||||||||||
Gains on available-for-sale securities | 15,699 | 82,049 | 57,779 | 150,067 | |||||||||||||||||
Losses on available-for-sale securities | - | -2,002 | -8,401 | -4,984 | |||||||||||||||||
Losses on trading securities, net | - | -3 | -1 | -111 | |||||||||||||||||
Hedge ineffectiveness | -2,932 | -1,284 | 419 | -6,783 | |||||||||||||||||
Gains on securities, net | 12,767 | 78,760 | 49,796 | 138,189 | |||||||||||||||||
Gains on loans and securities, net | $ | 12,213 | $ | 78,977 | $ | 48,954 | $ | 138,568 | |||||||||||||
During the first quarter of 2013, the Company sold $230.5 million in amortized cost of its available-for-sale non-agency CMOs for proceeds of approximately $227 million, which resulted in a pre-tax net loss of $3.8 million. | |||||||||||||||||||||
Loans_Receivable_Net
Loans Receivable, Net | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Disclosure Loans Receivable Net [Abstract] | ' | |||||||||||||||||||||
Loans Receivable, Net | ' | |||||||||||||||||||||
NOTE 6—LOANS RECEIVABLE, NET | ||||||||||||||||||||||
Loans receivable, net at September 30, 2013 and December 31, 2012 are summarized as follows (dollars in thousands): | ||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
One- to four-family | $ | 4,712,967 | $ | 5,442,174 | ||||||||||||||||||
Home equity | 3,619,054 | 4,223,461 | ||||||||||||||||||||
Consumer and other | 641,070 | 844,942 | ||||||||||||||||||||
Total loans receivable | 8,973,091 | 10,510,577 | ||||||||||||||||||||
Unamortized premiums, net | 50,444 | 68,897 | ||||||||||||||||||||
Allowance for loan losses | -458,921 | -480,751 | ||||||||||||||||||||
Total loans receivable, net | $ | 8,564,614 | $ | 10,098,723 | ||||||||||||||||||
At September 30, 2013, we pledged $7.1 billion and $0.6 billion of loans as collateral to the FHLB and Federal Reserve Bank, respectively. At December 31, 2012, we pledged $8.2 billion and $0.8 billion of loans as collateral to the FHLB and Federal Reserve Bank, respectively. Additionally, the Company's entire loans receivable portfolio was serviced by other companies at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||
The following table represents the breakdown of the total recorded investment in loans receivable and allowance for loan losses by loans that have been collectively evaluated for impairment and those that have been individually evaluated for impairment at September 30, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||
Recorded Investment | Allowance for Loan Losses | |||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Loans collectively evaluated for impairment | $ | 7,574,404 | $ | 9,073,326 | $ | 323,582 | $ | 309,377 | ||||||||||||||
Loans individually evaluated for impairment | ||||||||||||||||||||||
(TDRs) | 1,449,131 | 1,506,148 | 135,339 | 171,374 | ||||||||||||||||||
Total loans evaluated for impairment | $ | 9,023,535 | $ | 10,579,474 | $ | 458,921 | $ | 480,751 | ||||||||||||||
Credit Quality | ||||||||||||||||||||||
The Company tracks and reviews factors to predict and monitor credit risk in its mortgage loan portfolio on an ongoing basis. These factors include: loan type, estimated current LTV/CLTV ratios, delinquency history, documentation type, borrowers' current credit scores, housing prices, loan vintage and geographic location of the property. In economic conditions in which housing prices generally appreciate, the Company believes that loan type, LTV/CLTV ratios, documentation type and credit scores are the key factors in determining future loan performance. In a housing market with declining home prices and less credit available for refinance, the Company believes the LTV/CLTV ratio becomes a more important factor in predicting and monitoring credit risk. The factors are updated on at least a quarterly basis. The Company tracks and reviews delinquency status to predict and monitor credit risk in the consumer and other loan portfolio on at least a quarterly basis. | ||||||||||||||||||||||
The home equity loan portfolio is primarily second lien loans on residential real estate properties, which have a higher level of credit risk than first lien mortgage loans. Approximately 15% of the home equity portfolio was in the first lien position as of September 30, 2013. The Company holds both the first and second lien positions in less than 1% of the home equity loan portfolio. The home equity loan portfolio consists of approximately 21% of home equity installment loans and approximately 79% of home equity lines of credit. | ||||||||||||||||||||||
Home equity installment loans are primarily fixed rate and fixed term, fully amortizing loans that do not offer the option of an interest-only payment. The majority of home equity lines of credit convert to amortizing loans at the end of the draw period, which typically ranges from five to ten years. Approximately 9% of this portfolio will require the borrowers to repay the loan in full at the end of the draw period. At September 30, 2013, the majority of the home equity line of credit portfolio had not converted from the interest-only draw period and approximately 80% of this portfolio will not begin amortizing until after 2014. The following table outlines when home equity lines of credit convert to amortizing for the home equity line of credit portfolio as of September 30, 2013: | ||||||||||||||||||||||
Period of Conversion to Amortizing Loan | % of Home Equity Line of Credit Portfolio | |||||||||||||||||||||
Already amortizing | 11 | % | ||||||||||||||||||||
Through December 31, 2013 | 1 | % | ||||||||||||||||||||
Year ending December 31, 2014 | 8 | % | ||||||||||||||||||||
Year ending December 31, 2015 | 26 | % | ||||||||||||||||||||
Year ending December 31, 2016 | 41 | % | ||||||||||||||||||||
Year ending December 31, 2017 | 13 | % | ||||||||||||||||||||
The following tables show the distribution of the Company's mortgage loan portfolios by credit quality indicator at September 30, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||
One- to Four-Family | Home Equity | |||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
Current LTV/CLTV (1) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
<% | $ | 1,828,433 | $ | 1,324,167 | $ | 1,080,769 | $ | 927,559 | ||||||||||||||
80%-100% | 1,375,035 | 1,404,415 | 861,282 | 776,199 | ||||||||||||||||||
100%-120% | 853,381 | 1,231,448 | 789,749 | 932,033 | ||||||||||||||||||
>120% | 656,118 | 1,482,144 | 887,254 | 1,587,670 | ||||||||||||||||||
Total mortgage loans receivable | $ | 4,712,967 | $ | 5,442,174 | $ | 3,619,054 | $ | 4,223,461 | ||||||||||||||
Average estimated current LTV/CLTV (2) | 93.8 | % | 108.1 | % | 101.7 | % | 113.8 | % | ||||||||||||||
Average LTV/CLTV at loan origination (3) | 71.4 | % | 71.2 | % | 79.6 | % | 79.4 | % | ||||||||||||||
(1)Current CLTV calculations for home equity loans are based on the maximum available line for home equity lines of credit and outstanding principal balance for home equity installment loans. Current property values are updated on a quarterly basis using the most recent property value data available to the Company. For properties in which the Company did not have an updated valuation, it utilized home price indices to estimate the current property value. | ||||||||||||||||||||||
(2)The average estimated current LTV/CLTV ratio reflects the outstanding balance at the balance sheet date and the maximum available line for home equity lines of credit, divided by the estimated current value of the underlying property. | ||||||||||||||||||||||
(3)Average LTV/CLTV at loan origination calculations are based on LTV/CLTV at time of purchase for one- to four-family purchased loans and undrawn balances for home equity loans. | ||||||||||||||||||||||
One- to Four-Family | Home Equity | |||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
Documentation Type | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Full documentation | $ | 1,956,226 | $ | 2,317,933 | $ | 1,851,566 | $ | 2,166,554 | ||||||||||||||
Low/no documentation | 2,756,741 | 3,124,241 | 1,767,488 | 2,056,907 | ||||||||||||||||||
Total mortgage loans receivable | $ | 4,712,967 | $ | 5,442,174 | $ | 3,619,054 | $ | 4,223,461 | ||||||||||||||
One- to Four-Family | Home Equity | |||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
Current FICO (1) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
>r0 | $ | 2,370,515 | $ | 2,819,541 | $ | 1,896,798 | $ | 2,238,296 | ||||||||||||||
719 - 700 | 457,204 | 498,057 | 363,215 | 417,926 | ||||||||||||||||||
699 - 680 | 377,330 | 425,474 | 302,906 | 345,771 | ||||||||||||||||||
679 - 660 | 296,568 | 347,219 | 245,126 | 279,765 | ||||||||||||||||||
659 - 620 | 443,438 | 494,021 | 328,278 | 370,282 | ||||||||||||||||||
<620 | 767,912 | 857,862 | 482,731 | 571,421 | ||||||||||||||||||
Total mortgage loans receivable | $ | 4,712,967 | $ | 5,442,174 | $ | 3,619,054 | $ | 4,223,461 | ||||||||||||||
(1)FICO scores are updated on a quarterly basis; however, as of September 30, 2013 and December 31, 2012, there were some loans for which the updated FICO scores were not available. The current FICO distribution as of September 30, 2013 included original FICO scores for approximately $101 million and $10 million of one- to four-family and home equity loans, respectively. The current FICO distribution as of December 31, 2012 included original FICO scores for approximately $121 million and $20 million of one- to four-family and home equity loans, respectively. | ||||||||||||||||||||||
One- to Four-Family | Home Equity | |||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
Vintage Year | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
2003 and prior | $ | 153,797 | $ | 190,407 | $ | 166,956 | $ | 218,182 | ||||||||||||||
2004 | 448,991 | 514,283 | 293,875 | 359,737 | ||||||||||||||||||
2005 | 918,997 | 1,095,047 | 970,099 | 1,131,341 | ||||||||||||||||||
2006 | 1,865,445 | 2,123,395 | 1,702,268 | 1,962,946 | ||||||||||||||||||
2007 | 1,323,440 | 1,515,020 | 477,296 | 542,203 | ||||||||||||||||||
2008 | 2,297 | 4,022 | 8,560 | 9,052 | ||||||||||||||||||
Total mortgage loans receivable | $ | 4,712,967 | $ | 5,442,174 | $ | 3,619,054 | $ | 4,223,461 | ||||||||||||||
Average age of mortgage loans | ||||||||||||||||||||||
receivable (years) | 7.4 | 6.7 | 7.6 | 6.9 | ||||||||||||||||||
One- to Four-Family | Home Equity | |||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
Geographic Location | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
California | $ | 2,234,379 | $ | 2,568,709 | $ | 1,136,459 | $ | 1,333,317 | ||||||||||||||
New York | 320,454 | 386,380 | 270,845 | 313,148 | ||||||||||||||||||
Florida | 317,160 | 368,319 | 259,053 | 298,860 | ||||||||||||||||||
Virginia | 212,384 | 235,019 | 164,693 | 192,143 | ||||||||||||||||||
Other states | 1,628,590 | 1,883,747 | 1,788,004 | 2,085,993 | ||||||||||||||||||
Total mortgage loans receivable | $ | 4,712,967 | $ | 5,442,174 | $ | 3,619,054 | $ | 4,223,461 | ||||||||||||||
Delinquent Loans | ||||||||||||||||||||||
The following table shows total loans receivable by delinquency category as of September 30, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||
Current | 30-89 Days Delinquent | 90-179 Days Delinquent | 180+ Days Delinquent | Total | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||
One- to four-family | $ | 4,205,950 | $ | 196,485 | $ | 71,050 | $ | 239,482 | $ | 4,712,967 | ||||||||||||
Home equity | 3,473,294 | 69,494 | 38,464 | 37,802 | 3,619,054 | |||||||||||||||||
Consumer and other | 626,424 | 12,128 | 2,518 | - | 641,070 | |||||||||||||||||
Total loans receivable | $ | 8,305,668 | $ | 278,107 | $ | 112,032 | $ | 277,284 | $ | 8,973,091 | ||||||||||||
31-Dec-12 | ||||||||||||||||||||||
One- to four-family | $ | 4,834,915 | $ | 233,796 | $ | 94,652 | $ | 278,811 | $ | 5,442,174 | ||||||||||||
Home equity | 4,028,936 | 89,347 | 64,239 | 40,939 | 4,223,461 | |||||||||||||||||
Consumer and other | 819,468 | 19,101 | 6,178 | 195 | 844,942 | |||||||||||||||||
Total loans receivable | $ | 9,683,319 | $ | 342,244 | $ | 165,069 | $ | 319,945 | $ | 10,510,577 | ||||||||||||
Nonperforming Loans | ||||||||||||||||||||||
The Company classifies loans as nonperforming when they are no longer accruing interest. Nonaccrual loans include loans that are 90 days and greater past due, TDRs that are on nonaccrual status for all classes of loans and certain junior liens that have a delinquent senior lien. As of September 30, 2013, the Company had nonaccrual loans of $547.3 million, $180.3 million and $2.5 million for one- to four-family, home equity and consumer and other loans, respectively. As of December 31, 2012, the Company had nonaccrual loans of $639.1 million, $247.5 million and $6.4 million for one- to four-family, home equity and consumer and other loans, respectively. | ||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
The following table provides a roll forward by loan portfolio of the allowance for loan losses for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
One- to Four- Family | Home Equity | Consumer and Other | Total | |||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 143,569 | $ | 279,037 | $ | 28,340 | $ | 450,946 | ||||||||||||||
Provision for loan losses | -23,748 | 59,927 | 1,220 | 37,399 | ||||||||||||||||||
Charge-offs | -6,700 | -29,601 | -5,647 | -41,948 | ||||||||||||||||||
Recoveries | - | 9,715 | 2,809 | 12,524 | ||||||||||||||||||
Charge-offs, net | -6,700 | -19,886 | -2,838 | -29,424 | ||||||||||||||||||
Allowance for loan losses, end of period | $ | 113,121 | $ | 319,078 | $ | 26,722 | $ | 458,921 | ||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
One- to Four- Family | Home Equity | Consumer and Other | Total | |||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 215,934 | $ | 266,883 | $ | 42,939 | $ | 525,756 | ||||||||||||||
Provision for loan losses | 24,702 | 105,022 | 11,295 | 141,019 | ||||||||||||||||||
Charge-offs | -34,236 | -120,337 | -17,074 | -171,647 | ||||||||||||||||||
Recoveries | - | 9,321 | 3,833 | 13,154 | ||||||||||||||||||
Charge-offs, net | -34,236 | -111,016 | -13,241 | -158,493 | ||||||||||||||||||
Allowance for loan losses, end of period | $ | 206,400 | $ | 260,889 | $ | 40,993 | $ | 508,282 | ||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
One- to Four- Family | Home Equity | Consumer and Other | Total | |||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 183,937 | $ | 257,333 | $ | 39,481 | $ | 480,751 | ||||||||||||||
Provision for loan losses | -48,576 | 168,465 | 6,309 | 126,198 | ||||||||||||||||||
Charge-offs | -36,740 | -132,939 | -28,448 | -198,127 | ||||||||||||||||||
Recoveries | 14,500 | 26,219 | 9,380 | 50,099 | ||||||||||||||||||
Charge-offs, net | -22,240 | -106,720 | -19,068 | -148,028 | ||||||||||||||||||
Allowance for loan losses, end of period | $ | 113,121 | $ | 319,078 | $ | 26,722 | $ | 458,921 | ||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
One- to Four- Family | Home Equity | Consumer and Other | Total | |||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 314,187 | $ | 463,288 | $ | 45,341 | $ | 822,816 | ||||||||||||||
Provision for loan losses | 40,816 | 213,049 | 26,362 | 280,227 | ||||||||||||||||||
Charge-offs | -157,869 | -445,458 | -40,310 | -643,637 | ||||||||||||||||||
Recoveries | 9,266 | 30,010 | 9,600 | 48,876 | ||||||||||||||||||
Charge-offs, net | -148,603 | -415,448 | -30,710 | -594,761 | ||||||||||||||||||
Allowance for loan losses, end of period | $ | 206,400 | $ | 260,889 | $ | 40,993 | $ | 508,282 | ||||||||||||||
During the nine months ended September 30, 2013, the allowance for loan losses decreased by $21.8 million from $480.7 million at December 31, 2012. During the three and nine months ended September 30, 2013, the Company evaluated and refined its default assumptions related to a subset of the home equity line of credit portfolio that will require borrowers to repay the loan in full at the end of the draw period, commonly referred to as “balloon loans”. These loans were approximately $250 million of the home equity line of credit portfolio at September 30, 2013. The Company evaluated the significant burden a balloon payment may place on a borrower with a low FICO score and high CLTV ratio, and examined those loans within the balloon portfolio. The Company refined its expectations and estimates around the time period that it might take for these borrowers' equity positions in their collateral to appreciate in order to allow for possible refinance of the balloon loan at maturity. As a result of this evaluation, the Company increased its default assumptions and extended the period of management's forecasted loan losses captured within the general allowance to include the total probable loss on this subset of balloon loans. The overall impact of these enhancements drove the majority of provision for loan losses during the three and nine months ended September 30, 2013. | ||||||||||||||||||||||
The general allowance for loan losses also included a qualitative component to account for a variety of factors that are not directly considered in the quantitative loss model but are factors the Company believes may impact the level of credit losses. The qualitative component was $52 million and $44 million at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||
During the nine months ended September 30, 2013 and 2012, the Company agreed to settlements with three third party mortgage originators specific to loans sold to the Company by those originators. One-time payments were agreed upon to satisfy in full all pending and future repurchase requests with these specific originators. The Company applied the full amount of the payments of $12.5 million and $11.2 million for the nine months ended September 30, 2013 and 2012, respectively, as recoveries to the allowance for loan losses, resulting in a corresponding reduction to net charge-offs as well as provision for loan losses. | ||||||||||||||||||||||
During the first quarter of 2012, the Company completed an evaluation of certain programs and practices that were designed in accordance with guidance from the Company's former regulator, the OTS. The evaluation was initiated in connection with the Company's transition from the OTS to the OCC, its new primary banking regulator. As a result of the evaluation, loan modification policies and procedures were aligned with the guidance from the OCC. The review resulted in a significant increase in charge-offs during the first quarter of 2012. The majority of the losses associated with charge-offs were previously reflected in the specific valuation allowance and qualitative component of the general allowance for loan losses. | ||||||||||||||||||||||
The Company utilizes third party loan servicers to obtain bankruptcy data on its borrowers and during the third quarter of 2012, the Company identified an increase in bankruptcies reported by one specific servicer. In researching this increase, it was discovered that the servicer had not been reporting historical bankruptcy data on a timely basis. As a result, the Company implemented an enhanced procedure around all servicer reporting to corroborate bankruptcy reporting with independent third party data. Through this additional process, approximately $90 million of loans were identified in which servicers failed to report the bankruptcy filing to the Company. As a result, these loans were written down to the estimated current value of the underlying property less estimated selling costs, or approximately $40 million, during the third quarter of 2012. These newly identified bankruptcy filings resulted in an increase to net charge-offs and provision for loan losses of $50 million for the three months ended September 30, 2012, with approximately 80% related to prior years. | ||||||||||||||||||||||
Impaired Loans - Troubled Debt Restructurings | ||||||||||||||||||||||
TDRs include loan modifications completed under the Company's programs that involve granting an economic concession to a borrower experiencing financial difficulty, as well as loans that have been charged off based on the estimated current value of the underlying property less estimated selling costs due to bankruptcy notification. Upon being classified as a TDR, such loan is categorized as an impaired loan and is considered impaired until maturity regardless of whether the borrower performs under the terms of the loan. Impairment on TDRs is measured on an individual basis. | ||||||||||||||||||||||
TDRs are accounted for as nonaccrual loans at the time of classification and return to accrual status after six consecutive payments are made. TDRs are classified as nonperforming until six consecutive payments have been made. | ||||||||||||||||||||||
The unpaid principal balance in one- to four-family TDRs was $1.2 billion at both September 30, 2013 and December 31, 2012. For home equity loans, the recorded investment in TDRs represents the unpaid principal balance. As of September 30, 2013 the Company had $196.0 million recorded investment of TDRs that had been charged-off due to bankruptcy notification, $106.2 million of which were classified as performing. As of December 31, 2012 the Company had $216.6 million recorded investment of TDRs that had been charged-off due to bankruptcy notification, $119.2 million of which were classified as performing. | ||||||||||||||||||||||
The following table shows a summary of the Company's recorded investment in TDRs that were on accrual and nonaccrual status, in addition to the recorded investment of TDRs as of September 30, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||
Nonaccrual TDRs | ||||||||||||||||||||||
Accrual TDRs(1) | Current(2) | 30-89 Days Delinquent | 90+ Days Delinquent | Recorded Investment in TDRs | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||
One- to four-family | $ | 785,110 | $ | 135,490 | $ | 101,262 | $ | 174,445 | $ | 1,196,307 | ||||||||||||
Home equity | 181,870 | 28,115 | 14,768 | 28,071 | 252,824 | |||||||||||||||||
Total | $ | 966,980 | $ | 163,605 | $ | 116,030 | $ | 202,516 | $ | 1,449,131 | ||||||||||||
31-Dec-12 | ||||||||||||||||||||||
One- to four-family | $ | 785,199 | $ | 142,373 | $ | 118,834 | $ | 182,719 | $ | 1,229,125 | ||||||||||||
Home equity | 196,199 | 35,750 | 17,634 | 27,440 | 277,023 | |||||||||||||||||
Total | $ | 981,398 | $ | 178,123 | $ | 136,468 | $ | 210,159 | $ | 1,506,148 | ||||||||||||
(1)Represents TDRs that are current and have made six or more consecutive payments. | ||||||||||||||||||||||
(2)Represents TDRs that are current but have not yet made six consecutive payments and certain junior lien TDRs that have a delinquent senior lien. | ||||||||||||||||||||||
The following table shows the average recorded investment and interest income recognized both on a cash and accrual basis for the Company's TDRs during the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
One- to four-family | $ | 1,203,622 | $ | 1,067,178 | $ | 8,425 | $ | 6,867 | ||||||||||||||
Home equity | 255,899 | 259,608 | 4,857 | 2,778 | ||||||||||||||||||
Total | $ | 1,459,521 | $ | 1,326,786 | $ | 13,282 | $ | 9,645 | ||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
One- to four-family | $ | 1,211,935 | $ | 1,031,729 | $ | 25,092 | $ | 23,288 | ||||||||||||||
Home equity | 266,748 | 311,785 | 15,011 | 8,224 | ||||||||||||||||||
Total | $ | 1,478,683 | $ | 1,343,514 | $ | 40,103 | $ | 31,512 | ||||||||||||||
Included in the allowance for loan losses was a specific valuation allowance of $135.4 million and $171.4 million that was established for TDRs at September 30, 2013 and December 31, 2012, respectively. The specific allowance for these individually impaired loans represents the forecasted losses over the estimated remaining life of the loan, including the economic concession to the borrower. The following table shows detailed information related to the Company's loans that were modified in a TDR as of September 30, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||
Recorded Investment in TDRs | Specific Valuation Allowance | Net Investment in TDRs | Recorded Investment in TDRs | Specific Valuation Allowance | Net Investment in TDRs | |||||||||||||||||
With a recorded allowance: | ||||||||||||||||||||||
One- to four-family | $ | 424,311 | $ | 67,764 | $ | 356,547 | $ | 503,557 | $ | 89,684 | $ | 413,873 | ||||||||||
Home equity | $ | 149,671 | $ | 67,575 | $ | 82,096 | $ | 185,133 | $ | 81,690 | $ | 103,443 | ||||||||||
Without a recorded allowance:(1) | ||||||||||||||||||||||
One- to four-family | $ | 771,996 | $ | - | $ | 771,996 | $ | 725,568 | $ | - | $ | 725,568 | ||||||||||
Home equity | $ | 103,153 | $ | - | $ | 103,153 | $ | 91,890 | $ | - | $ | 91,890 | ||||||||||
Total: | ||||||||||||||||||||||
One- to four-family | $ | 1,196,307 | $ | 67,764 | $ | 1,128,543 | $ | 1,229,125 | $ | 89,684 | $ | 1,139,441 | ||||||||||
Home equity | $ | 252,824 | $ | 67,575 | $ | 185,249 | $ | 277,023 | $ | 81,690 | $ | 195,333 | ||||||||||
(1)Represents loans where the discounted cash flow analysis or collateral value is equal to or exceeds the recorded investment in the loan. | ||||||||||||||||||||||
Troubled Debt Restructurings – Loan Modifications | ||||||||||||||||||||||
The Company has loan modification programs that focus on the mitigation of potential losses in the one- to four-family and home equity mortgage loan portfolio. The Company currently does not have an active loan modification program for consumer and other loans. The various types of economic concessions that may be granted typically consist of interest rate reductions, maturity date extensions, principal forgiveness or a combination of these concessions. Trial modifications are classified immediately as TDRs and continue to be reported as delinquent until the successful completion of the trial period, which is typically 90 days. The loan then becomes a permanent modification reported as current but remains on nonaccrual status until six consecutive payments have been made. | ||||||||||||||||||||||
The vast majority of the Company's TDR loan modifications include an interest rate reduction in combination with another type of concession. The Company prioritizes the interest rate reduction modifications in combination with the following modification categories: principal forgiven, principal deferred and re-age/extension/capitalization of accrued interest. Each class is mutually exclusive in that if a modification had an interest rate reduction with principal forgiven and an extension, the modification would only be presented in the principal forgiven column in the table below. The following tables provide the number of loans, post-modification balances immediately after being modified by major class, and the financial impact of modifications during the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
Interest Rate Reduction | ||||||||||||||||||||||
Number of Loans | Principal Forgiven | Principal Deferred | Re-age/ Extension/ Interest Capitalization | Other with Interest Rate Reduction | Other | Total | ||||||||||||||||
One- to four-family | 94 | $ | 4,345 | $ | 1,453 | $ | 19,917 | $ | 2,749 | $ | 5,244 | $ | 33,708 | |||||||||
Home equity | 48 | - | - | 2,304 | 783 | 1,154 | 4,241 | |||||||||||||||
Total | 142 | $ | 4,345 | $ | 1,453 | $ | 22,221 | $ | 3,532 | $ | 6,398 | $ | 37,949 | |||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
Interest Rate Reduction | ||||||||||||||||||||||
Number of Loans | Principal Forgiven | Principal Deferred | Re-age/ Extension/ Interest Capitalization | Other with Interest Rate Reduction | Other | Total | ||||||||||||||||
One- to four-family | 148 | $ | 13,448 | $ | 5,706 | $ | 28,677 | $ | 2,579 | $ | 5,142 | $ | 55,552 | |||||||||
Home equity | 83 | 276 | 82 | 982 | 4,535 | 2,135 | 8,010 | |||||||||||||||
Total | 231 | $ | 13,724 | $ | 5,788 | $ | 29,659 | $ | 7,114 | $ | 7,277 | $ | 63,562 | |||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Interest Rate Reduction | ||||||||||||||||||||||
Number of Loans | Principal Forgiven | Principal Deferred | Re-age/ Extension/ Interest Capitalization | Other with Interest Rate Reduction | Other | Total | ||||||||||||||||
One- to four-family | 269 | $ | 16,240 | $ | 4,641 | $ | 61,827 | $ | 4,362 | $ | 13,668 | $ | 100,738 | |||||||||
Home equity | 200 | - | - | 5,184 | 7,012 | 5,381 | 17,577 | |||||||||||||||
Total | 469 | $ | 16,240 | $ | 4,641 | $ | 67,011 | $ | 11,374 | $ | 19,049 | $ | 118,315 | |||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Interest Rate Reduction | ||||||||||||||||||||||
Number of Loans | Principal Forgiven | Principal Deferred | Re-age/ Extension/ Interest Capitalization | Other with Interest Rate Reduction | Other | Total | ||||||||||||||||
One- to four-family | 528 | $ | 41,936 | $ | 32,535 | $ | 119,088 | $ | 7,793 | $ | 16,958 | $ | 218,310 | |||||||||
Home equity | 488 | 276 | 82 | 4,667 | 35,005 | 4,056 | 44,086 | |||||||||||||||
Total | 1,016 | $ | 42,212 | $ | 32,617 | $ | 123,755 | $ | 42,798 | $ | 21,014 | $ | 262,396 | |||||||||
Three Months Ended September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Principal Forgiven | Pre-TDR Weighted Average Interest Rate | Post-TDR Weighted Average Interest Rate | Principal Forgiven | Pre-TDR Weighted Average Interest Rate | Post-TDR Weighted Average Interest Rate | |||||||||||||||||
One- to four-family | $ | 1,532 | 5.1 | % | 2.3 | % | $ | 4,841 | 5.7 | % | 2.2 | % | ||||||||||
Home equity | - | 5 | % | 2.4 | % | 88 | 4.5 | % | 1.6 | % | ||||||||||||
Total | $ | 1,532 | $ | 4,929 | ||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Principal Forgiven | Pre-TDR Weighted Average Interest Rate | Post-TDR Weighted Average Interest Rate | Principal Forgiven | Pre-TDR Weighted Average Interest Rate | Post-TDR Weighted Average Interest Rate | |||||||||||||||||
One- to four-family | $ | 5,921 | 5.2 | % | 2.3 | % | $ | 12,818 | 5.9 | % | 2.4 | % | ||||||||||
Home equity | - | 4.5 | % | 1.9 | % | 96 | 4.4 | % | 1.6 | % | ||||||||||||
Total | $ | 5,921 | $ | 12,914 | ||||||||||||||||||
The Company considers modifications that become 30 days past due to have experienced a payment default. The following table shows the recorded investment of modifications at September 30, 2013 and 2012 that experienced a payment default within 12 months after the modification for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||||||||
One- to four-family(1) | 38 | $ | 14,544 | 111 | $ | 42,589 | ||||||||||||||||
Home equity(2) | 20 | 580 | 56 | 2,151 | ||||||||||||||||||
Total | 58 | $ | 15,124 | 167 | $ | 44,740 | ||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||||||||
One- to four-family(1) | 62 | $ | 22,741 | 208 | $ | 80,226 | ||||||||||||||||
Home equity(2) | 79 | 3,165 | 305 | 14,968 | ||||||||||||||||||
Total | 141 | $ | 25,906 | 513 | $ | 95,194 | ||||||||||||||||
(1)As of the three and nine months ended September 30, 2013, respectively, $4.4 million and $12.4 million of the recorded investment in one- to four-family loans that had a payment default in the trailing 12 months were classified as current, compared to $6.4 million and $20.6 million as of the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||||
(2)As of the three and nine months ended September 30, 2013, respectively, less than $0.1 million and $0.6 million of the recorded investment in home equity loans that had a payment default in the trailing 12 months were classified as current, compared to $2.6 million and $15.2 million as of the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||||
The delinquency status is the primary measure the Company uses to evaluate the performance of TDR loan modifications. The following table shows the TDR loan modifications by delinquency category as of September 30, 2013 and December 31, 2012 (dollars in thousands): | ||||||||||||||||||||||
Modifications Current | Modifications 30-89 Days Delinquent | Modifications 90-179 Days Delinquent | Modifications 180+ Days Delinquent | Recorded Investment in Modifications | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||
One- to four-family | $ | 833,917 | $ | 92,743 | $ | 40,230 | $ | 88,296 | $ | 1,055,186 | ||||||||||||
Home equity | 172,876 | 11,264 | 5,923 | 7,826 | 197,889 | |||||||||||||||||
Total | $ | 1,006,793 | $ | 104,007 | $ | 46,153 | $ | 96,122 | $ | 1,253,075 | ||||||||||||
31-Dec-12 | ||||||||||||||||||||||
One- to four-family | $ | 838,020 | $ | 105,142 | $ | 43,905 | $ | 79,102 | $ | 1,066,169 | ||||||||||||
Home equity | 195,021 | 15,107 | 6,173 | 7,118 | 223,419 | |||||||||||||||||
Total | $ | 1,033,041 | $ | 120,249 | $ | 50,078 | $ | 86,220 | $ | 1,289,588 |
Accounting_for_Derivative_Inst
Accounting for Derivative Instruments and Hedging Activities | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Disclosure - Accounting for Derivative Instruments and Hedging Activities [Abstract] | ' | ||||||||||||||||||||
Accounting for Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||||
NOTE 7—ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||||||||||
The Company enters into derivative transactions primarily to protect against interest rate risk on the value of certain assets, liabilities and future cash flows. Cash flow hedges, which include a combination of interest rate swaps, forward-starting swaps and purchased options, including caps and floors, are used primarily to reduce the variability of future cash flows associated with existing variable-rate assets and liabilities and forecasted issuances of liabilities. Fair value hedges, which include interest rate swaps and swaptions, are used to offset exposure to changes in value of certain fixed-rate assets and liabilities. Each derivative is recorded on the consolidated balance sheet at fair value as a freestanding asset or liability. The following table summarizes the fair value amounts of derivatives designated as hedging instruments reported in the consolidated balance sheet at September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Notional | Asset(1) | Liability(2) | Net(3) | ||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||
Pay-fixed rate swaps | $ | 2,480,000 | $ | 12,147 | $ | -195,418 | $ | -183,271 | |||||||||||||
Purchased options | 825,000 | 7,972 | - | 7,972 | |||||||||||||||||
Total cash flow hedges | 3,305,000 | 20,119 | -195,418 | -175,299 | |||||||||||||||||
Fair value hedges: | |||||||||||||||||||||
Pay-fixed rate swaps | 1,442,100 | 59,836 | -10,572 | 49,264 | |||||||||||||||||
Purchased forward-starting swaps | 19,250 | - | -595 | -595 | |||||||||||||||||
Total fair value hedges | 1,461,350 | 59,836 | -11,167 | 48,669 | |||||||||||||||||
Total derivatives designated as hedging instruments(4) | $ | 4,766,350 | $ | 79,955 | $ | -206,585 | $ | -126,630 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||
Pay-fixed rate swaps | $ | 2,205,000 | $ | - | $ | -310,079 | $ | -310,079 | |||||||||||||
Purchased options | 2,325,000 | 13,391 | - | 13,391 | |||||||||||||||||
Total cash flow hedges | 4,530,000 | 13,391 | -310,079 | -296,688 | |||||||||||||||||
Fair value hedges: | |||||||||||||||||||||
Pay-fixed rate swaps | 514,180 | 1,343 | -18,385 | -17,042 | |||||||||||||||||
Total derivatives designated as hedging instruments(4) | $ | 5,044,180 | $ | 14,734 | $ | -328,464 | $ | -313,730 | |||||||||||||
(1) | Reflected in the other assets line item on the consolidated balance sheet. | ||||||||||||||||||||
(2) | Reflected in the other liabilities line item on the consolidated balance sheet. | ||||||||||||||||||||
(3) | Represents derivative assets net of derivative liabilities for disclosure purposes only. | ||||||||||||||||||||
(4) | All derivatives were designated as hedging instruments as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||
The effective portion of changes in fair value of the derivative instruments that hedge cash flows is reported as a component of accumulated other comprehensive loss, net of tax in the consolidated balance sheet, for both active and discontinued hedges. Amounts are included in net operating interest income as a yield adjustment in the same period the hedged forecasted transaction affects earnings. The ineffective portion of changes in fair value of the derivative instrument, which is equal to the excess of the cumulative change in the fair value of the actual derivative over the cumulative change in the fair value of a hypothetical derivative which is created to match the exact terms of the underlying instruments being hedged, is reported in the gains on loans and securities, net line item in the consolidated statement of income (loss). | |||||||||||||||||||||
If it becomes probable that a hedged forecasted transaction will not occur, amounts included in accumulated other comprehensive loss related to the specific hedging instruments would be immediately reclassified into the gains on loans and securities, net line item in the consolidated statement of income (loss). If hedge accounting is discontinued because a derivative instrument is sold, terminated or otherwise de-designated, amounts included in accumulated other comprehensive loss related to the specific hedging instrument continue to be reported in accumulated other comprehensive loss until the forecasted transaction affects earnings. | |||||||||||||||||||||
The future issuances of liabilities, including repurchase agreements, are largely dependent on the market demand and liquidity in the wholesale borrowings market. As of September 30, 2013, the Company believes the forecasted issuance of all debt in cash flow hedge relationships is probable. However, unexpected changes in market conditions in future periods could impact the ability to issue this debt. The Company believes the forecasted issuance of debt in the form of repurchase agreements is most susceptible to an unexpected change in market conditions. | |||||||||||||||||||||
The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in cash flow hedges on accumulated other comprehensive loss and on the consolidated statement of income (loss) for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Gains (losses) on derivatives recognized in OCI (effective | |||||||||||||||||||||
portion), net of tax | $ | -11,894 | $ | -21,905 | $ | 56,575 | $ | -73,602 | |||||||||||||
Losses reclassified from AOCI into earnings (effective portion), | |||||||||||||||||||||
net of tax | $ | -21,214 | $ | -20,471 | $ | -64,357 | $ | -60,329 | |||||||||||||
Cash flow hedge ineffectiveness gains (losses) (1) | $ | -74 | $ | 111 | $ | 867 | $ | -862 | |||||||||||||
(1)The cash flow hedge ineffectiveness is reflected in the gains on loans and securities, net line item on the statement of consolidated income (loss). | |||||||||||||||||||||
During the upcoming twelve months, the Company expects to include a pre-tax amount of approximately $139.9 million of net unrealized losses that are currently reflected in accumulated other comprehensive loss in net operating interest income as a yield adjustment in the same periods in which the related hedged items affect earnings. The maximum length of time over which transactions are hedged is 9 years. | |||||||||||||||||||||
The following table shows the balance in accumulated other comprehensive loss attributable to active and discontinued cash flow hedges at September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Accumulated other comprehensive loss balance (net of tax) related to: | |||||||||||||||||||||
Discontinued cash flow hedges | $ | -212,351 | $ | -247,983 | |||||||||||||||||
Active cash flow hedges | -119,058 | -204,358 | |||||||||||||||||||
Total cash flow hedges | $ | -331,409 | $ | -452,341 | |||||||||||||||||
The following table shows the balance in accumulated other comprehensive loss attributable to cash flow hedges by type of hedged item at September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Repurchase agreements | $ | -424,217 | $ | -579,763 | |||||||||||||||||
FHLB advances | -108,941 | -146,253 | |||||||||||||||||||
Home equity lines of credit | 793 | 7,854 | |||||||||||||||||||
Other | - | 116 | |||||||||||||||||||
Total balance of cash flow hedges, before tax | -532,365 | -718,046 | |||||||||||||||||||
Tax benefit | 200,956 | 265,705 | |||||||||||||||||||
Total balance of cash flow hedges, net of tax | $ | -331,409 | $ | -452,341 | |||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||
Fair value hedges are accounted for by recording the fair value of the derivative instrument and the fair value of the asset or liability being hedged on the consolidated balance sheet. Changes in the fair value of both the derivatives and the underlying assets or liabilities are recognized in the gains on loans and securities, net line item in the consolidated statement of income (loss). To the extent that the hedge is ineffective, the changes in the fair values will not offset and the difference, or hedge ineffectiveness, is reflected in the gains on loans and securities, net line item in the consolidated statement of income (loss). | |||||||||||||||||||||
Hedge accounting is discontinued for fair value hedges if a derivative instrument is sold, terminated or otherwise de-designated. If fair value hedge accounting is discontinued, the previously hedged item is no longer adjusted for changes in fair value through the consolidated statement of income (loss) and the cumulative net gain or loss on the hedged asset or liability at the time of de-designation is amortized to interest income or interest expense using the effective interest method over the expected remaining life of the hedged item. Changes in the fair value of the derivative instruments after de-designation of fair value hedge accounting are recorded in the gains on loans and securities, net line item in the consolidated statement of income (loss). | |||||||||||||||||||||
The following table summarizes the effect of interest rate contracts designated and qualifying as hedging instruments in fair value hedges and related hedged items on the consolidated statement of income (loss) for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands): | |||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Hedging Instrument | Hedged Item | Hedge Ineffectiveness(1) | Hedging Instrument | Hedged Item | Hedge Ineffectiveness(1) | ||||||||||||||||
Agency debentures | $ | 3,204 | $ | -4,558 | $ | -1,354 | $ | -1,475 | $ | 1,481 | $ | 6 | |||||||||
Agency mortgage-backed | |||||||||||||||||||||
securities | -7,302 | 5,798 | -1,504 | -2,260 | 2,141 | -119 | |||||||||||||||
FHLB advances | - | - | - | 5,736 | -7,018 | -1,282 | |||||||||||||||
Total gains (losses) | |||||||||||||||||||||
included in earnings | $ | -4,098 | $ | 1,240 | $ | -2,858 | $ | 2,001 | $ | -3,396 | $ | -1,395 | |||||||||
Nine Months Ended September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Hedging Instrument | Hedged Item | Hedge Ineffectiveness(1) | Hedging Instrument | Hedged Item | Hedge Ineffectiveness(1) | ||||||||||||||||
Agency debentures | $ | 48,505 | $ | -47,994 | $ | 511 | $ | -27,875 | $ | 26,319 | $ | -1,556 | |||||||||
Agency mortgage-backed | |||||||||||||||||||||
securities | 20,548 | -21,507 | -959 | -7,303 | 6,745 | -558 | |||||||||||||||
FHLB advances | - | - | - | 14,939 | -18,746 | -3,807 | |||||||||||||||
Total gains (losses) | |||||||||||||||||||||
included in earnings | $ | 69,053 | $ | -69,501 | $ | -448 | $ | -20,239 | $ | 14,318 | $ | -5,921 | |||||||||
(1)Reflected in the gains on loans and securities, net line item on the consolidated statement of income (loss). |
Goodwill
Goodwill | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Goodwill And Other Intangibles, Net [Abstract] | ' | ||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||
NOTE 8—GOODWILL | |||||
The activity in the carrying value of the Company's goodwill, which is all assigned to the trading and investing segment, is outlined in the following table for the periods presented (dollars in thousands): | |||||
Trading & Investing Goodwill | |||||
Balance at December 31, 2011 | $ | 1,934,232 | |||
Activity | - | ||||
Balance at December 31, 2012 | 1,934,232 | ||||
Impairment of goodwill | -142,423 | ||||
Balance at September 30, 2013 | $ | 1,791,809 | |||
At the end of June 2013, the Company decided to exit its market making business, and as a result evaluated the total goodwill allocated to the market making reporting unit for impairment. As a result of the evaluation, it was determined that the entire carrying amount of goodwill allocated to the market making reporting unit was impaired, and the Company recognized $142.4 million impairment of goodwill during the second quarter of 2013. | |||||
No goodwill was assigned to reporting units within the balance sheet management segment as of September 30, 2013 and December 31, 2012. As of September 30, 2013, the Company's accumulated impairment losses related to goodwill were $142.4 million and $101.2 million in the trading and investing and balance sheet management segments, respectively. As of December 31, 2012, the Company's accumulated impairment losses related to goodwill were $101.2 million in the balance sheet management segment. There were no accumulated impairment losses related to the trading and investing segment at December 31, 2012. The Company will continue to evaluate the goodwill for impairment on at least an annual basis or when events or changes indicate the carrying value of an asset may not be recoverable. |
Deposits
Deposits | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Disclosure - Deposits [Abstract] | ' | |||||||||||||
Deposits | ' | |||||||||||||
NOTE 9—DEPOSITS | ||||||||||||||
Deposits are summarized as follows (dollars in thousands): | ||||||||||||||
Amount | Weighted-Average Rate | |||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Sweep deposits(1) | $ | 19,453,183 | $ | 21,253,611 | 0.06 | % | 0.05 | % | ||||||
Complete savings deposits | 4,407,250 | 4,981,615 | 0.01 | % | 0.01 | % | ||||||||
Checking deposits | 1,022,788 | 1,055,422 | 0.03 | % | 0.03 | % | ||||||||
Other money market and savings | ||||||||||||||
deposits | 918,631 | 995,188 | 0.01 | % | 0.01 | % | ||||||||
Time deposits(2) | 67,945 | 106,716 | 0.7 | % | 1.75 | % | ||||||||
Total deposits(3) | $ | 25,869,797 | $ | 28,392,552 | 0.05 | % | 0.05 | % | ||||||
(1)A sweep product transfers brokerage customer balances to banking subsidiaries, which hold these funds as customer deposits in FDIC insured demand deposit and money market deposit accounts. | ||||||||||||||
(2)Time deposits represent certificates of deposit and brokered certificates of deposit. | ||||||||||||||
(3)As of September 30, 2013 and December 31, 2012, the Company had $120.5 million and $113.1 million in non-interest bearing deposits, respectively. |
Securities_Sold_Under_Agreemen
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Disclosure Securities Sold Under Agreements To Repurchase and Fhlb Advances and Other Borrowings [Abstract] | ' | ||||||||||||||||||
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings | ' | ||||||||||||||||||
NOTE 10—SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND FHLB ADVANCES AND OTHER BORROWINGS | |||||||||||||||||||
Securities sold under agreements to repurchase, FHLB advances and other borrowings at September 30, 2013 and December 31, 2012 are shown in the following table (dollars in thousands): | |||||||||||||||||||
FHLB Advances and Other Borrowings | |||||||||||||||||||
Repurchase Agreements (1) | FHLB Advances | Other | Total | Weighted Average Interest Rate | |||||||||||||||
Due within one year | $ | 3,499,665 | $ | 170,000 | $ | 11,234 | $ | 3,680,899 | 0.35 | % | |||||||||
Due between one and two years | 200,000 | 100,000 | - | 300,000 | 1.22 | % | |||||||||||||
Due between two and three years | 250,000 | 250,000 | - | 500,000 | 0.46 | % | |||||||||||||
Due between three and four years | 500,000 | 400,000 | - | 900,000 | 1.26 | % | |||||||||||||
Thereafter | - | - | 427,806 | 427,806 | 2.93 | % | |||||||||||||
Subtotal | 4,449,665 | 920,000 | 439,040 | 5,808,705 | 0.74 | % | |||||||||||||
Fair value hedge adjustments | - | 31,034 | - | 31,034 | |||||||||||||||
Deferred costs | - | -105,063 | - | -105,063 | |||||||||||||||
Total other borrowings at September 30, 2013 | $ | 4,449,665 | $ | 845,971 | $ | 439,040 | $ | 5,734,676 | 0.74 | % | |||||||||
Total other borrowings at December 31, 2012 | $ | 4,454,661 | $ | 831,749 | $ | 429,167 | $ | 5,715,577 | 0.83 | % | |||||||||
(1)The maximum amount at any month end for repurchase agreements was $4.6 billion for the nine months ended September 30, 2013 and $5.0 billion for the year ended December 31, 2012. |
Corporate_Debt
Corporate Debt | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Disclosure Corporate Debt [Abstract] | ' | |||||||||||
Corporate Debt | ' | |||||||||||
NOTE 11—CORPORATE DEBT | ||||||||||||
Corporate debt at September 30, 2013 and December 31, 2012 is outlined in the following table (dollars in thousands): | ||||||||||||
Face Value | Discount | Net | ||||||||||
30-Sep-13 | ||||||||||||
Interest-bearing notes: | ||||||||||||
6 ¾% Notes, due 2016 | $ | 435,000 | $ | -4,479 | $ | 430,521 | ||||||
6% Notes, due 2017 | 505,000 | -3,893 | 501,107 | |||||||||
6 ⅜% Notes, due 2019 | 800,000 | -6,535 | 793,465 | |||||||||
Total interest-bearing notes | 1,740,000 | -14,907 | 1,725,093 | |||||||||
Non-interest-bearing debt: | ||||||||||||
0% Convertible debentures, due 2019 | 42,656 | - | 42,656 | |||||||||
Total corporate debt | $ | 1,782,656 | $ | -14,907 | $ | 1,767,749 | ||||||
Face Value | Discount | Net | ||||||||||
31-Dec-12 | ||||||||||||
Interest-bearing notes: | ||||||||||||
6 ¾% Notes, due 2016 | $ | 435,000 | $ | -5,738 | $ | 429,262 | ||||||
6% Notes, due 2017 | 505,000 | -4,601 | 500,399 | |||||||||
6 ⅜% Notes, due 2019 | 800,000 | -7,336 | 792,664 | |||||||||
Total interest-bearing notes | 1,740,000 | -17,675 | 1,722,325 | |||||||||
Non-interest-bearing debt: | ||||||||||||
0% Convertible debentures, due 2019 | 42,657 | - | 42,657 | |||||||||
Total corporate debt | $ | 1,782,657 | $ | -17,675 | $ | 1,764,982 |
Shareholders_Equity
Shareholders Equity | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Disclosure Shareholders Equity [Abstract] | ' | |||||||||||||
Shareholders Equity | ' | |||||||||||||
NOTE 12—SHAREHOLDERS' EQUITY | ||||||||||||||
The activity in shareholders' equity during the nine months ended September 30, 2013 is summarized in the following table (dollars in thousands): | ||||||||||||||
Common Stock / Additional Paid-In Capital | Accumulated Deficit / Other Comprehensive Loss | Total | ||||||||||||
Beginning balance, December 31, 2012 | $ | 7,322,118 | $ | -2,417,648 | $ | 4,904,470 | ||||||||
Net income | - | 28,149 | 28,149 | |||||||||||
Net change from available-for-sale securities | - | -231,764 | -231,764 | |||||||||||
Net change from cash flow hedging instruments | - | 120,932 | 120,932 | |||||||||||
Other(1) | 7,645 | 142 | 7,787 | |||||||||||
Ending balance, September 30, 2013 | $ | 7,329,763 | $ | -2,500,189 | $ | 4,829,574 | ||||||||
(1)Other includes conversions of convertible debt, employee share-based compensation accounting and changes in accumulated other comprehensive loss from foreign currency translation. | ||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
The following tables present after-tax changes in each component of accumulated other comprehensive loss (dollars in thousands): | ||||||||||||||
Available-for-sale Securities | Cash Flow Hedging Instruments | Foreign Currency Translation | Total | |||||||||||
Beginning balance, June 30, 2013 | $ | -103,939 | $ | -340,729 | $ | 5,001 | $ | -439,667 | ||||||
Other comprehensive income (loss) before reclassifications | 18,824 | -11,894 | 582 | 7,512 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | -9,677 | 21,214 | - | 11,537 | ||||||||||
Net change | 9,147 | 9,320 | 582 | 19,049 | ||||||||||
Ending balance, September 30, 2013 | $ | -94,792 | $ | -331,409 | $ | 5,583 | $ | -420,618 | ||||||
Available-for-sale Securities | Cash Flow Hedging Instruments | Foreign Currency Translation | Total | |||||||||||
Beginning balance, June 30, 2012 | $ | 126,554 | $ | -469,792 | $ | 2,539 | $ | -340,699 | ||||||
Other comprehensive income (loss) before reclassifications | 87,434 | -21,905 | 1,645 | 67,174 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | -50,349 | 20,471 | - | -29,878 | ||||||||||
Net change | 37,085 | -1,434 | 1,645 | 37,296 | ||||||||||
Ending balance, September 30, 2012 | $ | 163,639 | $ | -471,226 | $ | 4,184 | $ | -303,403 | ||||||
Available-for-sale Securities | Cash Flow Hedging Instruments | Foreign Currency Translation | Total | |||||||||||
Beginning balance, December 31, 2012 | $ | 136,972 | $ | -452,341 | $ | 5,441 | $ | -309,928 | ||||||
Other comprehensive income (loss) before reclassifications | -201,104 | 56,575 | 142 | -144,387 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | -30,660 | 64,357 | - | 33,697 | ||||||||||
Net change | -231,764 | 120,932 | 142 | -110,690 | ||||||||||
Ending balance, September 30, 2013 | $ | -94,792 | $ | -331,409 | $ | 5,583 | $ | -420,618 | ||||||
Available-for-sale Securities | Cash Flow Hedging Instruments | Foreign Currency Translation | Total | |||||||||||
Beginning balance, December 31, 2011 | $ | 68,330 | $ | -457,953 | $ | 2,994 | $ | -386,629 | ||||||
Other comprehensive income (loss) before reclassifications | 186,257 | -73,602 | 1,190 | 113,845 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | -90,948 | 60,329 | - | -30,619 | ||||||||||
Net change | 95,309 | -13,273 | 1,190 | 83,226 | ||||||||||
Ending balance, September 30, 2012 | $ | 163,639 | $ | -471,226 | $ | 4,184 | $ | -303,403 | ||||||
The following table presents the income statement line items impacted by reclassifications out of accumulated other comprehensive loss during the three and nine months ended September 30, 2013 (dollars in thousands): | ||||||||||||||
Accumulated Other Comprehensive Loss Components | Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Items in the Income Statement | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
30-Sep-13 | 30-Sep-13 | |||||||||||||
Available-for-sale securities: | ||||||||||||||
$ | 15,679 | $ | 49,298 | Gains on loans and securities, net | ||||||||||
-6,002 | -18,638 | Tax expense (benefit) | ||||||||||||
$ | 9,677 | $ | 30,660 | Reclassification into earnings, net | ||||||||||
Cash flow hedging instruments: | ||||||||||||||
$ | 2,353 | $ | 7,058 | Operating interest income | ||||||||||
-37,413 | -109,360 | Operating interest expense | ||||||||||||
-35,060 | -102,302 | Reclassification into earnings, before tax | ||||||||||||
13,846 | 37,945 | Tax expense (benefit) | ||||||||||||
$ | -21,214 | $ | -64,357 | Reclassification into earnings, net | ||||||||||
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Disclosure Earnings Per Share [Abstract] | ' | ||||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||||
NOTE 13—EARNINGS (LOSS) PER SHARE | |||||||||||||||||||
The following table is a reconciliation of basic and diluted earnings (loss) per share (in thousands, except per share amounts): | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Basic: | |||||||||||||||||||
Net income (loss) | $ | 47,428 | $ | -28,625 | $ | 28,149 | $ | 73,476 | |||||||||||
Basic weighted-average shares outstanding | 287,111 | 285,850 | 286,882 | 285,658 | |||||||||||||||
Basic earnings (loss) per share | $ | 0.17 | $ | -0.1 | $ | 0.1 | $ | 0.26 | |||||||||||
Diluted: | |||||||||||||||||||
Net income (loss) | $ | 47,428 | $ | -28,625 | $ | 28,149 | $ | 73,476 | |||||||||||
Basic weighted-average shares outstanding | 287,111 | 285,850 | 286,882 | 285,658 | |||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||
Weighted-average convertible debentures | 4,125 | - | 4,125 | 4,154 | |||||||||||||||
Weighted-average options and restricted | |||||||||||||||||||
stock issued to employees | 1,394 | - | 1,242 | 583 | |||||||||||||||
Diluted weighted-average shares outstanding | 292,630 | 285,850 | 292,249 | 290,395 | |||||||||||||||
Diluted earnings (loss) per share | $ | 0.16 | $ | -0.1 | $ | 0.1 | $ | 0.25 | |||||||||||
The Company excluded the following shares from the calculations of diluted earnings (loss) per share as the effect would have been anti-dilutive (shares in millions): | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Weighted-average shares excluded as a result of the Company's net loss: | |||||||||||||||||||
Convertible debentures | N/A | 4.1 | N/A | N/A | |||||||||||||||
Stock options and restricted stock awards and units | N/A | 0.4 | N/A | N/A | |||||||||||||||
Other stock options and restricted stock awards and units | 1.2 | 2.9 | 1.8 | 2.6 | |||||||||||||||
Total | 1.2 | 7.4 | 1.8 | 2.6 |
Regulatory_Requirements
Regulatory Requirements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Regulatory Requirements [Abstract] | ' | ||||||||||||||||
Regulatory Requirements Disclosure [Text Block] | ' | ||||||||||||||||
NOTE 14—REGULATORY REQUIREMENTS | |||||||||||||||||
Registered Broker-Dealers | |||||||||||||||||
The Company's largest U.S. broker-dealer subsidiaries are subject to the Uniform Net Capital Rule (the “Rule”) under the Securities Exchange Act of 1934 administered by the SEC and FINRA, which requires the maintenance of minimum net capital. The minimum net capital requirements can be met under either the Aggregate Indebtedness method or the Alternative method. Under the Aggregate Indebtedness method, a broker-dealer is required to maintain minimum net capital of the greater of 6 ⅔% of its aggregate indebtedness, as defined, or a minimum dollar amount. Under the Alternative method, a broker-dealer is required to maintain net capital equal to the greater of $250,000 or 2% of aggregate debit balances arising from customer transactions. The method used depends on the individual U.S. broker-dealer subsidiary. The Company's other broker-dealers, including its international broker-dealer subsidiaries located in Europe and Asia, are subject to capital requirements determined by their respective regulators. | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, all of the Company's broker-dealer subsidiaries met minimum net capital requirements. Total required net capital was $140.5 million and $129.8 million at September 30, 2013 and December 31, 2012, respectively. In addition, the Company's broker-dealer subsidiaries had excess net capital of $828.6 million and $655.1 million at September 30, 2013 and December 31, 2012, respectively. The tables below summarize the minimum excess capital requirements for the Company's broker-dealer subsidiaries at September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||||||||||
Required Net Capital | Net Capital | Excess Net Capital | |||||||||||||||
September 30, 2013: | |||||||||||||||||
E*TRADE Clearing LLC(1) | $ | 137,061 | $ | 703,752 | $ | 566,691 | |||||||||||
E*TRADE Securities LLC(1) | 250 | 215,109 | 214,859 | ||||||||||||||
G1 Execution Services, LLC(2) | 1,000 | 21,140 | 20,140 | ||||||||||||||
Other broker-dealers | 2,220 | 29,088 | 26,868 | ||||||||||||||
Total | $ | 140,531 | $ | 969,089 | $ | 828,558 | |||||||||||
December 31, 2012: | |||||||||||||||||
E*TRADE Clearing LLC(1) | $ | 123,656 | $ | 658,968 | $ | 535,312 | |||||||||||
E*TRADE Securities LLC(1) | 250 | 79,318 | 79,068 | ||||||||||||||
G1 Execution Services, LLC(2) | 1,283 | 10,598 | 9,315 | ||||||||||||||
Other broker-dealers | 4,639 | 36,070 | 31,431 | ||||||||||||||
Total | $ | 129,828 | $ | 784,954 | $ | 655,126 | |||||||||||
(1)Elected to use the Alternative method to compute net capital. | |||||||||||||||||
(2)Elected to use the Aggregate Indebtedness method to compute net capital. G1 Execution Services, LLC is the Company’s market maker and is held-for-sale as of September 30, 2013. | |||||||||||||||||
Banking | |||||||||||||||||
E*TRADE Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on E*TRADE Bank's financial condition and results of operations. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, E*TRADE Bank must meet specific capital guidelines that involve quantitative measures of E*TRADE Bank's assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. In addition, E*TRADE Bank may not pay dividends to the parent company without approval from its regulators and any loans by E*TRADE Bank to the parent company and its other non-bank subsidiaries are subject to various quantitative, arm's length, collateralization and other requirements. E*TRADE Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | |||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require E*TRADE Bank to meet minimum total capital, Tier 1 capital and Tier 1 leverage ratios. As shown in the table below, at both September 30, 2013 and December 31, 2012, E*TRADE Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action. However, events beyond management's control, such as a continued deterioration in residential real estate and credit markets, could adversely affect future earnings and E*TRADE Bank's ability to meet its future capital requirements. E*TRADE Bank's actual and required capital amounts and ratios at September 30, 2013 and December 31, 2012 are presented in the table below (dollars in thousands): | |||||||||||||||||
Actual | Minimum Required to be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||
Amount | Ratio | Amount | Ratio | Excess Capital | |||||||||||||
September 30, 2013: | |||||||||||||||||
Total capital | $ | 4,242,628 | 23.47 | % | >$ | 1,807,504 | > | 10 | % | $ | 2,435,124 | ||||||
Tier 1 capital | $ | 4,013,123 | 22.2 | % | >$ | 1,084,502 | > | 6 | % | $ | 2,928,621 | ||||||
Tier 1 leverage | $ | 4,013,123 | 9.48 | % | >$ | 2,116,802 | > | 5 | % | $ | 1,896,321 | ||||||
December 31, 2012: | |||||||||||||||||
Total capital | $ | 4,009,540 | 20.61 | % | >$ | 1,945,669 | > | 10 | % | $ | 2,063,871 | ||||||
Tier 1 capital | $ | 3,762,242 | 19.34 | % | >$ | 1,167,401 | > | 6 | % | $ | 2,594,841 | ||||||
Tier 1 leverage | $ | 3,762,242 | 8.68 | % | >$ | 2,167,136 | > | 5 | % | $ | 1,595,106 |
Commitments_Contingencies_and_
Commitments, Contingencies and Other Regulatory Matters | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure - Commitments, Contingencies And Other Regulatory Matters [Abstract] | ' |
Commitments, Contingencies and Other Regulatory Matters | ' |
NOTE 15—COMMITMENTS, CONTINGENCIES AND OTHER REGULATORY MATTERS | |
Legal Matters | |
Litigation Matters | |
On October 27, 2000, Ajaxo, Inc. (“Ajaxo”) filed a complaint in the Superior Court for the State of California, County of Santa Clara. Ajaxo sought damages and certain non-monetary relief for the Company's alleged breach of a non-disclosure agreement with Ajaxo pertaining to certain wireless technology that Ajaxo offered the Company as well as damages and other relief against the Company for their alleged misappropriation of Ajaxo's trade secrets. Following a jury trial, a judgment was entered in 2003 in favor of Ajaxo against the Company for $1.3 million for breach of the Ajaxo non-disclosure agreement. Although the jury found in favor of Ajaxo on its claim against the Company for misappropriation of trade secrets, the trial court subsequently denied Ajaxo's requests for additional damages and relief. On December 21, 2005, the California Court of Appeal affirmed the above-described award against the Company for breach of the nondisclosure agreement but remanded the case to the trial court for the limited purpose of determining what, if any, additional damages Ajaxo may be entitled to as a result of the jury's previous finding in favor of Ajaxo on its claim against the Company for misappropriation of trade secrets. Although the Company paid Ajaxo the full amount due on the above-described judgment, the case was remanded back to the trial court, and on May 30, 2008, a jury returned a verdict in favor of the Company denying all claims raised and demands for damages against the Company. Following the trial court's filing of entry of judgment in favor of the Company on September 5, 2008, Ajaxo filed post-trial motions for vacating this entry of judgment and requesting a new trial. By order dated November 4, 2008, the trial court denied these motions. On December 2, 2008, Ajaxo filed a notice of appeal with the Court of Appeal of the State of California for the Sixth District. Oral argument on the appeal was heard on July 15, 2010. On August 30, 2010, the Court of Appeal affirmed the trial court's verdict in part and reversed the verdict in part, remanding the case. The Company petitioned the Supreme Court of California for review of the Court of Appeal decision. On December 16, 2010, the California Supreme Court denied the Company's petition for review and remanded for further proceedings to the trial court. On September 20, 2011, the trial court granted limited discovery at a conference on November 4, 2011. The testimonial phase of the third trial in this matter commenced on February 21 and 22, 2012 and concluded on June 12, 2012. The parties await decision on whether there will be a second phase of this bench trial. The Company will continue to defend itself vigorously. | |
A verified shareholder derivative complaint was filed in the United States District Court for the Southern District of New York on October 4, 2007 by Catherine Rubery, against the Company and its then Chief Executive Officer, President/Chief Operating Officer, Chief Financial Officer and individual members of its board of directors. The Rubery complaint was consolidated with another shareholder derivative complaint brought by shareholder Marilyn Clark in the same court and against the same named defendants. On July 26, 2010, plaintiffs served their consolidated amended complaint, in which they also named the Company's former Capital Markets Division President as a defendant. Plaintiffs contended, among other things, that the value of the Company's stock between April 19, 2006 and November 9, 2007 was artificially inflated because certain of the Company's officers made materially false and misleading statements and failed to disclose that the Company was experiencing a rise in delinquencies, and therefore lacked a reasonable basis for statements about the Company's earnings and prospects. Plaintiffs allege, among other things, causes of action for breach of fiduciary duty, waste of corporate assets, unjust enrichment, and violation of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint seeks, among other things, unspecified monetary damages in favor of the Company, changes to certain corporate governance procedures and various forms of injunctive relief. The parties agreed to settle this action and a Stipulation of Settlement was signed on October 2, 2012, which included an agreement to implement or maintain certain corporate governance procedures. The parties did not reach an agreement on the issue of plaintiffs' attorneys' fees, however. The Court preliminarily approved the Stipulation of Settlement on April 2, 2013 and granted final approval of the settlement at a hearing on September 13, 2013. In orders entered on October 3, 2013, the Court confirmed final approval of the settlement, awarded fees and expenses to plaintiffs' attorneys totaling $1.0 million and issued a final judgement and order of dismissal. Pursuant to the terms of the Stipulation of Settlement, payment of plaintiffs' attorneys' fees and expenses was made by November 4, 2013, and the action is now closed. | |
On August 15, 2008, Ronald M. Tate as trustee of the Ronald M. Tate Trust dated 4/13/88, and George Avakian filed an action in the United States District Court for the Southern District of New York against the Company and its then Chief Executive Officer and Chief Financial Officer based on the same facts and circumstances, and containing the same claims, as the class action complaint alleging violations of the federal securities laws that was filed in the United States District Court for the Southern District of New York on October 2, 2007 by Larry Freudenberg on his own behalf and on behalf of others similarly situated (the “Freudenberg Action”). By agreement of the parties and approval of the court, the Tate action was consolidated with the Freudenberg Action for the purpose of pre-trial discovery. Plaintiffs seek to recover damages in an amount to be proven at trial, including interest, attorneys' and expert fees and costs. The parties in the Freudenberg Action entered into a Stipulation of Settlement on May 17, 2012, but the plaintiffs in this action moved for exclusion from the settlement class in Freudenberg. The Court granted that relief on October 11, 2012, and later approved the Freudenberg settlement in a final judgment and order of dismissal dated October 22, 2012. Tate and Avakian filed an amended complaint on January 23, 2013, adding an additional claim under California law. The Company answered the amended complaint on March 13, 2013. The Company and the plaintiffs reached a confidential settlement at mediation on September 12, 2013 pursuant to which plaintiffs were paid a non-material sum as consideration for mutual releases. Payment of the settlement amount was completed on October 15, 2013, and the parties submitted a stipulation of voluntary dismissal on October 16, 2013. The stipulation of voluntary dismissal was so-ordered by the Court on October 22, 2013, and the action is now closed. | |
On May 16, 2011, Droplets Inc., the holder of two patents pertaining to user interface servers, filed a complaint in the U.S. District Court for the Eastern District of Texas against E*TRADE Financial Corporation, E*TRADE Securities LLC, E*TRADE Bank and multiple other unaffiliated financial services firms. Plaintiff contends that the defendants engaged in patent infringement under federal law. Plaintiff seeks unspecified damages and an injunction against future infringements, plus royalties, costs, interest and attorneys' fees. On September 30, 2011, the Company and several co-defendants filed a motion to transfer the case to the Southern District of New York. Venue discovery occurred throughout December 2011. On January 1, 2012, a new judge was assigned to the case. On March 28, 2012, a change of venue was granted and the case has been transferred to the United States District Court for the Southern District of New York. The Company filed its answer and counterclaim on June 13, 2012 and plaintiff has moved to dismiss the counterclaim. The Company filed a motion for summary judgment. Plaintiffs sought to change venue back to the Eastern District of Texas on the theory that this case is one of several matters that should be consolidated in a single multi-district litigation. On December 12, 2012, the Multidistrict Litigation Panel denied the transfer of this action to Texas. By opinion dated April 4, 2013, the Court denied defendants' motion for summary judgment and plaintiff's motion to dismiss the counterclaims. The Court issued its order on claim construction on October 22, 2013. The Company will continue to defend itself vigorously in this matter. | |
Several cases have been filed nationwide involving the April 2007 leveraged buyout (“LBO”) of the Tribune Company (“Tribune”) by Sam Zell, and the subsequent bankruptcy of Tribune. In William Niese et al. v. A.G. Edwards et al., in Superior Court of Delaware, New Castle County, former Tribune employees and retirees claimed that Tribune was actually insolvent at the time of the LBO and that the LBO constituted a fraudulent transaction that depleted the plaintiffs' retirement plans, rendering them worthless. E*TRADE Clearing LLC, along with numerous other financial institutions, is a named defendant in this case, but has not been served with process. One of the defendants removed the action to federal district court in Delaware on July 1, 2011. In Deutsche Bank Trust Company Americas et al. v. Adaly Opportunity Fund et al., filed in the Supreme Court of New York, New York County on June 3, 2011, the Trustees of certain notes issued by Tribune allege wrongdoing in connection with the LBO. In particular the Trustees claim that the LBO constituted a constructive fraudulent transfer under various state laws. G1 Execution Services, LLC (formerly known as E*TRADE Capital Markets, LLC), along with numerous other financial institutions, is a named defendant in this case. In Deutsche Bank et al. v. Ohlson et al., filed in the U.S. District Court for the Northern District of Illinois, noteholders of Tribune asserted claims of constructive fraud and G1 Execution Services, LLC is a named defendant in this case. In EGI-TRB LLC et al. v. ABN-AMRO et al., filed in the Circuit Court of Cook County Illinois, creditors of Tribune assert fraudulent conveyance claims against multiple shareholder defendants and E*TRADE Clearing LLC is a named defendant in this case. These cases have been consolidated into a multi-district litigation. The Company's time to answer or otherwise respond to the complaints has been stayed pending further orders of the Court. On September 18, 2013, the Court entered the Fifth Amended Complaint. On September 23, 2013, the Court granted the defendants' motion to dismiss the individual creditors' complaint. The individual creditors filed a notice of appeal. The Company will defend itself vigorously in these matters. | |
On April 30, 2013, a putative class action was filed by John Scranton, on behalf of himself and a class of persons similarly situated, against E*TRADE Financial Corporation and E*TRADE Securities LLC in the Superior Court of California, County of Santa Clara, pursuant to the California procedures for a private Attorney General action. The Complaint alleged that the Company misrepresented through its website that it would always automatically exercise options that were in-the-money by $0.01 or more on expiration date. Plaintiffs allege violations of the California Unfair Competition Law, the California Consumer Remedies Act, fraud, misrepresentation, negligent misrepresentation and Breach of Fiduciary Duty. The case has been deemed complex within the meaning of the California Rules of Court, and a case management conference was held September 13, 2013. The Company's demurrer and motion to strike the complaint are to be set for hearing December 20, 2013. The Company will continue to defend itself vigorously in this matter. | |
In addition to the matters described above, the Company is subject to various legal proceedings and claims that arise in the normal course of business. In each pending matter, the Company contests liability or the amount of claimed damages. In view of the inherent difficulty of predicting the outcome of such matters, particularly in cases where claimants seek substantial or indeterminate damages, or where investigation or discovery have yet to be completed, the Company is unable to reasonably estimate a range of possible losses on its remaining outstanding legal proceedings; however, the Company believes any losses would not be reasonably likely to have a material adverse effect on the consolidated financial condition or results of operations of the Company. | |
An unfavorable outcome in any matter could have a material adverse effect on the Company's business, financial condition, results of operations or cash flows. In addition, even if the ultimate outcomes are resolved in the Company's favor, the defense of such litigation could entail considerable cost or the diversion of the efforts of management, either of which could have a material adverse effect on the Company's business, financial condition, results of operations or cash flows. | |
Regulatory Matters | |
The securities and banking industries are subject to extensive regulation under federal, state and applicable international laws. From time to time, the Company has been threatened with or named as a defendant in lawsuits, arbitrations and administrative claims involving securities, banking and other matters. The Company is also subject to periodic regulatory audits and inspections. Compliance and trading problems that are reported to regulators, such as the SEC, FINRA or OCC by dissatisfied customers or others are investigated by such regulators, and may, if pursued, result in formal claims being filed against the Company by customers or disciplinary action being taken against the Company or its employees by regulators. Any such claims or disciplinary actions that are decided against the Company could have a material impact on the financial results of the Company or any of its subsidiaries. | |
On October 17, 2007, the SEC initiated an informal inquiry into matters related to the Company's mortgage loan and mortgage-related securities investment portfolios. The Company has cooperated fully with the SEC in this matter. | |
During 2012, the Company completed a review of order handling practices and pricing for order flow between E*TRADE Securities LLC and G1 Execution Services, LLC. The Company has implemented changes to its practices and procedures that were recommended during the review. Banking regulators and federal securities regulators were regularly updated during the course of the review and may initiate investigations into the Company's historical practices which could subject it to monetary penalties and cease-and-desist orders, which could also prompt claims by customers of E*TRADE Securities LLC. Any of these actions could materially and adversely affect the Company's broker-dealer businesses. On July 11, 2013, FINRA notified E*TRADE Securities LLC and G1 Execution Services, LLC that it is conducting an examination of both firms' routing practices. | |
Insurance | |
The Company maintains insurance coverage that management believes is reasonable and prudent. The principal insurance coverage it maintains covers commercial general liability; property damage; hardware/software damage; cyber liability; directors and officers; employment practices liability; certain criminal acts against the Company; and errors and omissions. The Company believes that such insurance coverage is adequate for the purpose of its business. The Company's ability to maintain this level of insurance coverage in the future, however, is subject to the availability of affordable insurance in the marketplace. | |
Estimated Liabilities | |
For all legal matters, an estimated liability is established in accordance with the loss contingencies accounting guidance. Once established, the estimated liability is adjusted based on available information when an event occurs requiring an adjustment. | |
Commitments | |
In the normal course of business, the Company makes various commitments to extend credit and incur contingent liabilities that are not reflected in the consolidated balance sheet. Significant changes in the economy or interest rates may influence the impact that these commitments and contingencies have on the Company in the future. | |
Other Investments | |
The Company has investments in low-income housing tax credit partnerships and other limited partnerships. The Company had $4.4 million in commitments to fund low-income housing tax credit partnerships and other limited partnerships as of September 30, 2013. | |
Unused Lines of Credit and Certificates of Deposit | |
At September 30, 2013, the Company had approximately $42.6 million of certificates of deposit scheduled to mature in less than one year and $0.4 billion of unfunded commitments to extend credit. | |
Guarantees | |
In prior periods when the Company sold loans, the Company provided guarantees to investors purchasing mortgage loans, which are considered standard representations and warranties within the mortgage industry. The primary guarantees are that: the mortgage and the mortgage note have been duly executed and each is the legal, valid and binding obligation of the Company, enforceable in accordance with its terms; the mortgage has been duly acknowledged and recorded and is valid; and the mortgage and the mortgage note are not subject to any right of rescission, set-off, counterclaim or defense, including, without limitation, the defense of usury, and no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto. The Company is responsible for the guarantees on loans sold. If these claims prove to be untrue, the investor can require the Company to repurchase the loan and return all loan purchase and servicing release premiums. Management does not believe the potential liability exposure will have a material impact on the Company's results of operations, cash flows or financial condition due to the nature of the standard representations and warranties, which have resulted in a minimal amount of loan repurchases. | |
Prior to 2008, ETBH raised capital through the formation of trusts, which sold trust preferred securities in the capital markets. The capital securities must be redeemed in whole at the due date, which is generally 30 years after issuance. Each trust issued trust preferred securities at par, with a liquidation amount of $1,000 per capital security. The trusts used the proceeds from the sale of issuances to purchase subordinated debentures issued by ETBH. | |
During the 30-year period prior to the redemption of the trust preferred securities, ETBH guarantees the accrued and unpaid distributions on these securities, as well as the redemption price of the securities and certain costs that may be incurred in liquidating, terminating or dissolving the trusts (all of which would otherwise be payable by the trusts). At September 30, 2013, management estimated that the maximum potential liability under this arrangement, including the current carrying value of the trusts, was equal to approximately $436.5 million or the total face value of these securities plus dividends, which may be unpaid at the termination of the trust arrangement. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Disclosure - Segment Information [Abstract] | ' | |||||||||||||
Segment Information | ' | |||||||||||||
NOTE 16—SEGMENT INFORMATION | ||||||||||||||
The Company reports its operating results in two segments, based on the manner in which its chief operating decision maker evaluates financial performance and makes resource allocation decisions: 1) trading and investing; and 2) balance sheet management. Trading and investing includes retail brokerage products and services; investor-focused banking products; market making; and corporate services. Balance sheet management includes the management of asset allocation; loans previously originated by the Company or purchased from third parties; customer payables and deposits; and credit, liquidity and interest rate risk. The balance sheet management segment utilizes customer payables and deposits and compensates the trading and investing segment via a market-based transfer pricing arrangement, which is eliminated in consolidation. | ||||||||||||||
The Company does not allocate costs associated with certain functions that are centrally-managed to its operating segments. These costs are separately reported in a corporate/other category, along with technology related costs incurred to support centrally-managed functions; restructuring and other exit activities; and corporate debt and corporate investments. | ||||||||||||||
The Company evaluates the performance of its segments based on the segment's income (loss) before income taxes. Financial information for the Company's reportable segments is presented in the following tables (dollars in thousands): | ||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||
Trading and Investing | Balance Sheet Management | Corporate/ Other | Total | |||||||||||
Net operating interest income | $ | 133,378 | $ | 107,469 | $ | - | $ | 240,847 | ||||||
Total non-interest income | 162,735 | 13,220 | - | 175,955 | ||||||||||
Total net revenue | 296,113 | 120,689 | - | 416,802 | ||||||||||
Provision for loan losses | - | 37,399 | - | 37,399 | ||||||||||
Total operating expense | 170,344 | 43,489 | 56,911 | 270,744 | ||||||||||
Income (loss) before other income (expense) and income taxes | 125,769 | 39,801 | -56,911 | 108,659 | ||||||||||
Total other income (expense) | - | - | -28,729 | -28,729 | ||||||||||
Income (loss) before income taxes | $ | 125,769 | $ | 39,801 | $ | -85,640 | 79,930 | |||||||
Income tax expense | 32,502 | |||||||||||||
Net income | $ | 47,428 | ||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||
Trading and Investing | Balance Sheet Management | Corporate/ Other | Total | |||||||||||
Net operating interest income | $ | 156,805 | $ | 104,072 | $ | - | $ | 260,877 | ||||||
Total non-interest income | 150,662 | 78,502 | -6 | 229,158 | ||||||||||
Total net revenue | 307,467 | 182,574 | -6 | 490,035 | ||||||||||
Provision for loan losses | - | 141,019 | - | 141,019 | ||||||||||
Total operating expense | 180,463 | 53,204 | 55,366 | 289,033 | ||||||||||
Income (loss) before other income (expense) and income taxes | 127,004 | -11,649 | -55,372 | 59,983 | ||||||||||
Total other income (expense) | - | - | -96,286 | -96,286 | ||||||||||
Income (loss) before income taxes | $ | 127,004 | $ | -11,649 | $ | -151,658 | -36,303 | |||||||
Income tax benefit | -7,678 | |||||||||||||
Net loss | $ | -28,625 | ||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||
Trading and Investing | Balance Sheet Management | Corporate/ Other | Total | |||||||||||
Net operating interest income | $ | 400,729 | $ | 323,988 | $ | - | $ | 724,717 | ||||||
Total non-interest income | 500,656 | 51,226 | -1 | 551,881 | ||||||||||
Total net revenue | 901,385 | 375,214 | -1 | 1,276,598 | ||||||||||
Provision for loan losses | - | 126,198 | - | 126,198 | ||||||||||
Total operating expense | 687,361 | 134,990 | 157,855 | 980,206 | ||||||||||
Income (loss) before other income (expense) and income taxes | 214,024 | 114,026 | -157,856 | 170,194 | ||||||||||
Total other income (expense) | - | - | -80,678 | -80,678 | ||||||||||
Income (loss) before income taxes | $ | 214,024 | $ | 114,026 | $ | -238,534 | 89,516 | |||||||
Income tax expense | 61,367 | |||||||||||||
Net income | $ | 28,149 | ||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||
Trading and Investing | Balance Sheet Management | Corporate/ Other | Total | |||||||||||
Net operating interest income | $ | 492,456 | $ | 332,374 | $ | 4 | $ | 824,834 | ||||||
Total non-interest income | 472,771 | 134,254 | -19 | 607,006 | ||||||||||
Total net revenue | 965,227 | 466,628 | -15 | 1,431,840 | ||||||||||
Provision for loan losses | - | 280,227 | - | 280,227 | ||||||||||
Total operating expense | 580,113 | 168,407 | 128,207 | 876,727 | ||||||||||
Income (loss) before other income (expense) and income taxes | 385,114 | 17,994 | -128,222 | 274,886 | ||||||||||
Total other income (expense) | - | - | -184,655 | -184,655 | ||||||||||
Income (loss) before income taxes | $ | 385,114 | $ | 17,994 | $ | -312,877 | 90,231 | |||||||
Income tax expense | 16,755 | |||||||||||||
Net income | $ | 73,476 | ||||||||||||
Segment Assets | ||||||||||||||
Trading and Investing | Balance Sheet Management | Corporate/Other | Total | |||||||||||
As of September 30, 2013 | $ | 10,087,260 | $ | 34,868,901 | $ | 591,318 | $ | 45,547,479 | ||||||
As of December 31, 2012 | $ | 9,505,280 | $ | 37,305,600 | $ | 575,859 | $ | 47,386,739 | ||||||
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure - Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
NOTE 17—SUBSEQUENT EVENT | |
On October 23, 2013, the Company entered into a definitive agreement to sell the market making business, G1 Execution Services, LLC, to an affiliate of Susquehanna International Group, LLP for approximately $75 million. In addition, E*TRADE Securities LLC will enter into an order flow agreement whereby, subject to best execution standards, it will route 70% of its customer equity order flow to G1X over the next five years. This transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in three to six months. |
Recovered_Sheet1
Organization, Basis Of Presentation And Summary Of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||
Organization | ' | ||||||||||||||||||||
Organization—E*TRADE Financial Corporation is a financial services company that provides online brokerage and related products and services primarily to individual retail investors under the brand “E*TRADE Financial.” The Company also provides investor-focused banking products, primarily sweep deposits and savings products, to retail investors. | |||||||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||||||
Basis of Presentation—The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries as determined under the voting interest model. Entities in which the Company holds at least a 20% ownership interest or in which there are other indicators of significant influence are generally accounted for by the equity method. Entities in which the Company holds less than a 20% ownership interest and does not have the ability to exercise significant influence are generally carried at cost. Intercompany accounts and transactions are eliminated in consolidation. The Company also evaluates its continuing involvement with certain entities to determine if the Company is required to consolidate the entities under the variable interest entity model. This evaluation is based on a qualitative assessment of whether the Company has both: 1) the power to direct matters that most significantly impact the activities of the variable interest entity; and 2) the obligation to absorb losses or the right to receive benefits of the variable interest entity that could potentially be significant to the variable interest entity. | |||||||||||||||||||||
Certain prior period items in these consolidated financial statements have been reclassified to conform to the current period presentation. These consolidated financial statements reflect all adjustments, which are all normal and recurring in nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. All prior periods have been adjusted to present gains on sales of investments, net and equity in income (loss) of investments and venture funds on a single line item, equity in income (loss) of investments and other, on the consolidated statement of income (loss). These two line items were previously presented as separate line items on the consolidated statement of income (loss). | |||||||||||||||||||||
At the end of June 2013, the Company decided to exit its market making business, and reclassified the assets and liabilities of the market making business to held-for-sale. The assets and liabilities of the market making business are presented in the other assets and other liabilities line items, respectively, as of September 30, 2013 on the consolidated balance sheet. | |||||||||||||||||||||
The Company reports corporate interest income and corporate interest expense separately from operating interest income and operating interest expense. The Company believes reporting these two items separately provides a clearer picture of the financial performance of the Company's operations than would a presentation that combined these two items. Operating interest income and operating interest expense is generated from the operations of the Company. Corporate debt, which is the primary source of corporate interest expense, has been issued primarily in connection with recapitalization transactions and past acquisitions. | |||||||||||||||||||||
Similarly, the Company reports gains on sales of investments, net separately from gains on loans and securities, net. The Company believes reporting these two items separately provides a clearer picture of the financial performance of its operations than would a presentation that combined these two items. Gains on loans and securities, net are the result of activities in the Company's operations, namely its balance sheet management segment. Gains on sales of investments, net relate to investments of the Company at the corporate level and are not related to the ongoing business of the Company's operating subsidiaries. Gains on sales of investments, net is reported in the equity in income (loss) of investments and other line item on the consolidated statement of income (loss). | |||||||||||||||||||||
These consolidated financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended December 31, 2012. | |||||||||||||||||||||
Related Party (policy) | ' | ||||||||||||||||||||
Related Parties—Kenneth Griffin, President and CEO of Citadel, served on the Company's Board of Directors from June 8, 2009 to May 9, 2013. During this period, the Company routed a portion of its customer equity orders in exchange-listed options and Regulation NMS Securities to an affiliate of Citadel for order handling and execution at current market rates. Payments for these customer equity orders represented less than 1% of the Company's total net revenue for both the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||
Joseph M. Velli, Chairman and CEO of ConvergEx Group, joined the Board of Directors in January 2010. During the periods presented, the Company used ConvergEx Group for clearing and transfer agent services. Payments for these services represented less than 1% of the Company's total operating expenses for both the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||
Use of Estimates (policy) | ' | ||||||||||||||||||||
Use of Estimates—The consolidated financial statements were prepared in accordance with GAAP, which requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and related notes for the periods presented. Actual results could differ from management's estimates. Certain significant accounting policies are noteworthy because they are based on estimates and assumptions that require complex and subjective judgments by management. Changes in these estimates or assumptions could materially impact the Company's financial condition and results of operations. Material estimates in which management believes changes could reasonably occur include: allowance for loan losses; valuation of goodwill and other intangible assets; estimates of effective tax rates, deferred taxes and valuation allowance; classification and valuation of certain investments; accounting for derivative instruments; and fair value measurements. | |||||||||||||||||||||
Margin receivables (policy) | ' | ||||||||||||||||||||
Margin Receivables—The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, where the Company is permitted to sell or re-pledge the securities, was approximately $8.7 billion and $8.2 billion as of September 30, 2013 and December 31, 2012, respectively. Of this amount, $1.7 billion and $1.5 billion had been pledged or sold in connection with securities loans, bank borrowings and deposits with clearing organizations as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||
Allowance for loan losses (policy) | ' | ||||||||||||||||||||
Allowance for Loan Losses—The allowance for loan losses is management's estimate of probable losses inherent in the loan portfolio as of the balance sheet date. The Company's segments are one- to four-family, home equity and consumer and other. For loans that are not TDRs, the Company established a general allowance. The estimate of the allowance for loan losses is based on a variety of quantitative and qualitative factors, including the composition and quality of the portfolio; delinquency levels and trends; current and historical charge-off and loss experience; the Company's historical loss mitigation experience; the condition of the real estate market and geographic concentrations within the loan portfolio; the interest rate climate; the overall availability of housing credit; and general economic conditions. The one- to four-family and home equity loan portfolios are separated into risk segments based on key risk factors, which include but are not limited to loan type, delinquency history, documentation type, LTV/CLTV ratio and borrowers' credit scores. For home equity loans in the second lien position, the original balance of the first lien loan at origination date and updated valuations on the property underlying the loan are used to calculate CLTV. Both current CLTV and FICO scores are among the factors utilized to categorize the risk associated with loans and assign a probability assumption of future default. Based upon the segmentation, the Company utilizes historical performance data to develop the forecast of delinquency and default for these risk segments. During the three and nine months ended September 30, 2013, the Company evaluated and refined its default assumptions related to a subset of the home equity line of credit portfolio that will require borrowers to repay the loan in full at the end of the draw period, commonly referred to as “balloon loans”. These loans were approximately $250 million of the home equity line of credit portfolio at September 30, 2013. The Company evaluated the significant burden a balloon payment may place on a borrower with a low FICO score and high CLTV ratio, and examined those loans within the balloon portfolio. The Company refined its expectations and estimates around the time period that it might take for these borrowers' equity positions in their collateral to appreciate in order to allow for possible refinance of the balloon loan at maturity. As a result of this evaluation, the Company increased its default assumptions and extended the period of management's forecasted loan losses captured within the general allowance to include the total probable loss on this subset of balloon loans. The overall impact of these enhancements drove the majority of provision for loan losses during the three and nine months ended September 30, 2013. The Company's consumer and other loan portfolio is separated into risk segments by product and delinquency status. The Company utilizes historical performance data and historical recovery rates on collateral liquidation to forecast delinquency and loss at the product level. The general allowance for loan losses is typically equal to management's forecast of loan losses in the twelve months following the balance sheet date. | |||||||||||||||||||||
The general allowance for loan losses also included a qualitative component to account for a variety of factors that are not directly considered in the quantitative loss model but are factors the Company believes may impact the level of credit losses. Examples of these factors are: external factors, such as changes in the macroeconomic, legal and regulatory environment; internal factors, such as procedural changes and reliance on third parties; and portfolio specific factors, such as the impact of payment resets and historical loan modification activity, which impacts the historical performance data used to forecast delinquency and default in the general allowance for loan losses. | |||||||||||||||||||||
The total qualitative component was $52 million and $44 million at September 30, 2013 and December 31, 2012, respectively. The qualitative component for the one- to four-family and home equity loan portfolios was 19% and 17% of the general allowance for loan losses at September 30, 2013 and December 31, 2012, respectively. The increase in the qualitative reserve in these loan portfolios from December 31, 2012 to September 30, 2013 primarily reflects updates to portfolio specific factors. The qualitative component for the consumer and other loan portfolio was 16% and 17% of the general allowance at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||
For modified loans accounted for as TDRs that are valued using the discounted cash flow model, the Company established a specific allowance. The specific allowance for TDRs factors in the historical default rate of an individual loan before being modified as a TDR in the discounted cash flow analysis in order to determine that specific loan's expected impairment. Specifically, a loan that has a more severe delinquency history prior to modification will have a higher future default rate in the discounted cash flow analysis than a loan that was not as severely delinquent. For both of the one- to four-family and home equity loan portfolio segments, the pre-modification delinquency status, the borrower's current credit score and other credit bureau attributes, in addition to each loan's individual default experience and credit characteristics, are incorporated into the calculation of the specific allowance. A specific allowance is established to the extent that the recorded investment exceeds the discounted cash flows of a TDR with a corresponding charge to provision for loan losses. The specific allowance for these individually impaired loans represents the forecasted losses over the estimated remaining life of the loan, including the economic concession to the borrower. | |||||||||||||||||||||
Income taxes (policy) | ' | ||||||||||||||||||||
Income Taxes—The Company's unrecognized tax benefit decreased $157.4 million to $334.6 million during the nine months ended September 30, 2013. The majority of the decrease was due to the Company's ability to carryback 2012 operating losses to 2010 and 2011. At September 30, 2013, $243.9 million (net of federal benefits on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably impact the effective income tax rate in future periods. | |||||||||||||||||||||
Offsetting assets and liabilities (policy) | ' | ||||||||||||||||||||
Offsetting Assets and Liabilities—Effective January 1, 2013, the Company adopted the amended disclosure guidance about offsetting certain assets and liabilities, which required additional information about derivative instruments, repurchase agreements and securities borrowing and securities lending transactions that are offset or subject to an enforceable master netting arrangement or similar agreement. For financial statement purposes, the Company does not offset derivative instruments, repurchase agreements or securities borrowing and securities lending transactions. The Company's derivative instruments, repurchase agreements and securities borrowing and securities lending transactions are transacted under master agreements that are widely used by counterparties and that may allow for net settlements of payments in the normal course as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the two parties to the transaction; therefore, all of these transactions are presented in the amended disclosures. The following table presents information about these transactions to enable the users of the Company's financial statements to evaluate the potential effect of rights of setoff between these recognized assets and recognized liabilities as of September 30, 2013 and December 31, 2012 (dollars in thousands): | |||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheet | |||||||||||||||||||||
Gross Amounts of Recognized Assets and Liabilities | Gross Amounts Offset in the Consolidated Balance Sheet | Net Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Collateral Received or Pledged (Including Cash) | Net Amount | ||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Deposits paid for securities | |||||||||||||||||||||
borrowed(1)(5) | $ | 422,737 | $ | - | $ | 422,737 | $ | -132,104 | $ | -280,871 | $ | 9,762 | |||||||||
Derivative assets(1)(3) | 79,955 | - | 79,955 | -44,651 | -16,129 | 19,175 | |||||||||||||||
Total | $ | 502,692 | $ | - | $ | 502,692 | $ | -176,755 | $ | -297,000 | $ | 28,937 | |||||||||
Liabilities: | |||||||||||||||||||||
Repurchase agreements(4) | $ | 4,449,665 | $ | - | $ | 4,449,665 | $ | - | $ | -4,449,417 | $ | 248 | |||||||||
Deposits received for | |||||||||||||||||||||
securities loaned(2)(6) | 831,830 | - | 831,830 | -132,104 | -643,038 | 56,688 | |||||||||||||||
Derivative liabilities(2)(3)(4) | 206,585 | - | 206,585 | -44,651 | -161,934 | - | |||||||||||||||
Total | $ | 5,488,080 | $ | - | $ | 5,488,080 | $ | -176,755 | $ | -5,254,389 | $ | 56,936 | |||||||||
31-Dec-12 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Deposits paid for securities | |||||||||||||||||||||
borrowed(1)(5) | $ | 407,331 | $ | - | $ | 407,331 | $ | -142,410 | $ | -259,490 | $ | 5,431 | |||||||||
Derivative assets(1)(3) | 14,734 | - | 14,734 | -5,176 | -8,427 | 1,131 | |||||||||||||||
Total | $ | 422,065 | $ | - | $ | 422,065 | $ | -147,586 | $ | -267,917 | $ | 6,562 | |||||||||
Liabilities: | |||||||||||||||||||||
Repurchase agreements(4) | $ | 4,454,661 | $ | - | $ | 4,454,661 | $ | - | $ | -4,454,659 | $ | 2 | |||||||||
Deposits received for | |||||||||||||||||||||
securities loaned(2)(6) | 735,720 | - | 735,720 | -142,410 | -554,400 | 38,910 | |||||||||||||||
Derivative liabilities(2)(3)(4) | 328,464 | - | 328,464 | -5,176 | -323,288 | - | |||||||||||||||
Total | $ | 5,518,845 | $ | - | $ | 5,518,845 | $ | -147,586 | $ | -5,332,347 | $ | 38,912 | |||||||||
(1)Net amounts presented in the consolidated balance sheet are reflected in the other assets line item. | |||||||||||||||||||||
(2)Net amounts presented in the consolidated balance sheet are reflected in the other liabilities line item. | |||||||||||||||||||||
(3)Excludes net accrued interest payable of $22.5 million and $14.1 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||
(4)The Company pledges available-for-sale and held-to-maturity securities as collateral for amounts due on repurchase agreements and derivative liabilities. The collateral pledged included available-for-sale securities at fair value and held-to-maturity securities at amortized cost for both September 30, 2013 and December 31, 2012. | |||||||||||||||||||||
(5)Included in the gross amounts of deposits paid for securities borrowed is $264.7 million and $133.8 million as of September 30, 2013 and December 31, 2012, respectively, transacted through a program with a clearing organization, which guarantees the return of cash to the Company. For presentation purposes, these amounts presented are based on the original counterparties to the Company’s master securities loan agreements. | |||||||||||||||||||||
(6)Included in the gross amounts of deposits received for securities loaned is $538.3 million and $419.6 million as of September 30, 2013 and December 31, 2012, respectively, transacted through a program with a clearing organization, which guarantees the return of securities to the Company. For presentation purposes, these amounts presented are based on the original counterparties to the Company’s master securities loan agreements. | |||||||||||||||||||||
New accounting and disclosure guidance (policy) | ' | ||||||||||||||||||||
New Accounting and Disclosure Guidance—Below is the new accounting and disclosure guidance that relates to activities in which the Company is engaged. | |||||||||||||||||||||
Disclosures about Offsetting Assets and Liabilities | |||||||||||||||||||||
In December 2011, the FASB amended the disclosure guidance about offsetting assets and liabilities. The amended disclosure guidance will enable users of the Company's financial statements to evaluate the effect or potential effect of netting arrangements on the Company's financial position. This includes the effect or potential effect of rights of setoff between recognized assets and recognized liabilities within the scope of amended disclosure guidance, such as derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The amended disclosure guidance became effective for annual and interim periods beginning on January 1, 2013 for the Company and was applied retrospectively for all comparative periods presented. The Company's disclosures reflect the adoption of the amended disclosure guidance in Financial Statement Descriptions and Related Accounting Policies section in Note 1—Organization, Basis of Presentation and Summary of Significant Accounting Policies. | |||||||||||||||||||||
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | |||||||||||||||||||||
In February 2013, the FASB amended the presentation guidance on the reporting of amounts reclassified out of accumulated other comprehensive income. The amended guidance does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the guidance amends the presentation of the amounts reclassified out of accumulated other comprehensive income by component. In addition, the amended guidance requires the presentation, either on the face of the statement where net income is presented or in the notes, of significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amended guidance became effective for annual and interim periods beginning on January 1, 2013 for the Company and was applied prospectively. The Company's disclosures reflect the adoption of the amended presentation guidance in Note 12—Shareholders' Equity. | |||||||||||||||||||||
Inclusion of the Fed Funds Effective Swap Rate as a Benchmark Interest Rate for Hedge Accounting Purposes | |||||||||||||||||||||
In July 2013, the FASB amended the derivatives and hedging accounting guidance. The amended guidance permits the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes under derivatives and hedging accounting requirements, in addition to U.S. Treasury and LIBOR. The amendments also remove the restriction on using different benchmark rates for similar hedges. Before the amendments, only U.S. Treasury and the LIBOR swap rate were considered benchmark interest rates in accordance with GAAP. The amendments became effective prospectively for qualifying new or re-designated hedging relationships entered into on or after July 17, 2013. The amended accounting guidance did not have a material impact on the Company's statement of financial condition, results of operation, or cash flows. | |||||||||||||||||||||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |||||||||||||||||||||
In July 2013, the FASB amended the presentation guidance on unrecognized tax benefits. The amended guidance requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except under certain circumstances. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The unrecognized tax benefit should also be presented in the financial statements as a liability if the tax law of the applicable jurisdiction does not require the Company to use, and the Company does not intend to use, the deferred tax asset to settle any additional income taxes. The amended presentation guidance will be effective for annual and interim periods beginning on January 1, 2014 for the Company and will be applied prospectively to unrecognized tax benefits that exist at that date. Retrospective application and early adoption is permitted. The adoption of the amended presentation guidance will not have a material impact on the Company's financial condition, results of operations, or cash flows. | |||||||||||||||||||||
Organization_Basis_of_Presenta1
Organization, Basis of Presentation And Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Offsetting Tables [Abstract] | ' | ||||||||||||||||||||
Offsetting [Table Text Block] | ' | ||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheet | |||||||||||||||||||||
Gross Amounts of Recognized Assets and Liabilities | Gross Amounts Offset in the Consolidated Balance Sheet | Net Amounts Presented in the Consolidated Balance Sheet | Financial Instruments | Collateral Received or Pledged (Including Cash) | Net Amount | ||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Deposits paid for securities | |||||||||||||||||||||
borrowed(1)(5) | $ | 422,737 | $ | - | $ | 422,737 | $ | -132,104 | $ | -280,871 | $ | 9,762 | |||||||||
Derivative assets(1)(3) | 79,955 | - | 79,955 | -44,651 | -16,129 | 19,175 | |||||||||||||||
Total | $ | 502,692 | $ | - | $ | 502,692 | $ | -176,755 | $ | -297,000 | $ | 28,937 | |||||||||
Liabilities: | |||||||||||||||||||||
Repurchase agreements(4) | $ | 4,449,665 | $ | - | $ | 4,449,665 | $ | - | $ | -4,449,417 | $ | 248 | |||||||||
Deposits received for | |||||||||||||||||||||
securities loaned(2)(6) | 831,830 | - | 831,830 | -132,104 | -643,038 | 56,688 | |||||||||||||||
Derivative liabilities(2)(3)(4) | 206,585 | - | 206,585 | -44,651 | -161,934 | - | |||||||||||||||
Total | $ | 5,488,080 | $ | - | $ | 5,488,080 | $ | -176,755 | $ | -5,254,389 | $ | 56,936 | |||||||||
31-Dec-12 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Deposits paid for securities | |||||||||||||||||||||
borrowed(1)(5) | $ | 407,331 | $ | - | $ | 407,331 | $ | -142,410 | $ | -259,490 | $ | 5,431 | |||||||||
Derivative assets(1)(3) | 14,734 | - | 14,734 | -5,176 | -8,427 | 1,131 | |||||||||||||||
Total | $ | 422,065 | $ | - | $ | 422,065 | $ | -147,586 | $ | -267,917 | $ | 6,562 | |||||||||
Liabilities: | |||||||||||||||||||||
Repurchase agreements(4) | $ | 4,454,661 | $ | - | $ | 4,454,661 | $ | - | $ | -4,454,659 | $ | 2 | |||||||||
Deposits received for | |||||||||||||||||||||
securities loaned(2)(6) | 735,720 | - | 735,720 | -142,410 | -554,400 | 38,910 | |||||||||||||||
Derivative liabilities(2)(3)(4) | 328,464 | - | 328,464 | -5,176 | -323,288 | - | |||||||||||||||
Total | $ | 5,518,845 | $ | - | $ | 5,518,845 | $ | -147,586 | $ | -5,332,347 | $ | 38,912 | |||||||||
(1)Net amounts presented in the consolidated balance sheet are reflected in the other assets line item. | |||||||||||||||||||||
(2)Net amounts presented in the consolidated balance sheet are reflected in the other liabilities line item. | |||||||||||||||||||||
(3)Excludes net accrued interest payable of $22.5 million and $14.1 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||
(4)The Company pledges available-for-sale and held-to-maturity securities as collateral for amounts due on repurchase agreements and derivative liabilities. The collateral pledged included available-for-sale securities at fair value and held-to-maturity securities at amortized cost for both September 30, 2013 and December 31, 2012. | |||||||||||||||||||||
(5)Included in the gross amounts of deposits paid for securities borrowed is $264.7 million and $133.8 million as of September 30, 2013 and December 31, 2012, respectively, transacted through a program with a clearing organization, which guarantees the return of cash to the Company. For presentation purposes, these amounts presented are based on the original counterparties to the Company’s master securities loan agreements. | |||||||||||||||||||||
(6)Included in the gross amounts of deposits received for securities loaned is $538.3 million and $419.6 million as of September 30, 2013 and December 31, 2012, respectively, transacted through a program with a clearing organization, which guarantees the return of securities to the Company. For presentation purposes, these amounts presented are based on the original counterparties to the Company’s master securities loan agreements. |
Business_HeldForSale_Tables
Business Held-For-Sale (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Discontinued Operations and Disposal [Abstract] | ' | ||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | ||||||
September 30, | December 31, | ||||||
2013(1) | 2012 | ||||||
Assets | |||||||
Cash and equivalents | $ | 9,336 | $ | 7,618 | |||
Trading securities | 97,548 | 101,252 | |||||
Property and equipment, net | 1,112 | 1,517 | |||||
Goodwill | - | 142,423 | |||||
Other intangibles, net | 21,161 | 21,898 | |||||
Other assets | 47,071 | 37,096 | |||||
Total assets | $ | 176,228 | $ | 311,804 | |||
Liabilities | |||||||
Other liabilities | 102,448 | 96,463 | |||||
Total liabilities | $ | 102,448 | $ | 96,463 | |||
-1 | Assets and liabilities as of September 30, 2013 are classified as held-for-sale and reflected in the other assets and other liabilities line items on the consolidated balance sheet, respectively. |
Operating_Interest_Income_and_1
Operating Interest Income and Operating Interest Expense (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Interest Income And Expense Operating Excluding Corporate (Tables) [Abstract] | ' | ||||||||||||||
Schedule Of Components Of Interest Income And Expense Operating Excluding Corporate [Table Text Block] | ' | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Operating interest income: | |||||||||||||||
Loans | $ | 96,365 | $ | 118,747 | $ | 305,222 | $ | 383,242 | |||||||
Available-for-sale securities | 68,470 | 82,661 | 199,029 | 286,647 | |||||||||||
Held-to-maturity securities | 64,486 | 61,923 | 183,819 | 175,574 | |||||||||||
Margin receivables | 56,073 | 55,465 | 164,459 | 158,873 | |||||||||||
Securities borrowed and other | 15,521 | 15,181 | 50,276 | 46,422 | |||||||||||
Total operating interest income | 300,915 | 333,977 | 902,805 | 1,050,758 | |||||||||||
Operating interest expense: | |||||||||||||||
Securities sold under agreements to repurchase | -37,431 | -40,136 | -111,144 | -121,373 | |||||||||||
FHLB advances and other borrowings | -17,152 | -24,153 | -51,183 | -74,979 | |||||||||||
Deposits | -3,306 | -5,885 | -9,680 | -20,838 | |||||||||||
Customer payables and other | -2,179 | -2,926 | -6,081 | -8,734 | |||||||||||
Total operating interest expense | -60,068 | -73,100 | -178,088 | -225,924 | |||||||||||
Net operating interest income | $ | 240,847 | $ | 260,877 | $ | 724,717 | $ | 824,834 |
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | ' | |||||||||||||||||
Weighted Average Coupon Rate | ||||||||||||||||||
Agency mortgage-backed securities | 3.1 | % | ||||||||||||||||
Agency CMOs | 3.28 | % | ||||||||||||||||
Non-agency CMOs | 3.14 | % | ||||||||||||||||
Weighted Average | Range | |||||||||||||||||
Underlying loans: | ||||||||||||||||||
Coupon rate | 2.86 | % | 2.72 | % | - | 6.28 | % | |||||||||||
Maturity (years) | 20 | 20 | - | 25 | ||||||||||||||
Significant inputs: | ||||||||||||||||||
Yield | 3 | % | 3 | % | - | 10 | % | |||||||||||
Default rate(1) | 32 | % | 3 | % | - | 100 | % | |||||||||||
Loss severity | 28 | % | 0 | % | - | 65 | % | |||||||||||
Prepayment rate | 13 | % | 4 | % | - | 39 | % | |||||||||||
(1)The default rate reflects the implied rate necessary to equate market price to the book yield given the market credit assumption. | ||||||||||||||||||
Unobservable Inputs | Average | Range | ||||||||||||||||
One- to four-family | Appraised value | $ | 387 | $ | 4 | - | $ | 2,500 | ||||||||||
Home equity | Appraised value | $ | 290 | $ | 9 | - | $ | 1,600 | ||||||||||
Real estate owned | Appraised value | $ | 285 | $ | 1 | - | $ | 1,163 | ||||||||||
Fair Value Assets And Liabilities Measured On Nonrecurring And Recurring Basis [Table Text Block] | ' | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
September 30, 2013: | ||||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||||
Assets | ||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | - | $ | 12,222,556 | $ | - | $ | 12,222,556 | ||||||||||
Non-agency CMOs | - | - | 14,012 | 14,012 | ||||||||||||||
Total residential mortgage-backed securities | - | 12,222,556 | 14,012 | 12,236,568 | ||||||||||||||
Investment securities: | ||||||||||||||||||
Agency debentures | - | 318,354 | - | 318,354 | ||||||||||||||
Agency debt securities | - | 675,531 | - | 675,531 | ||||||||||||||
Municipal bonds | - | 46,550 | - | 46,550 | ||||||||||||||
Corporate bonds | - | 4,455 | - | 4,455 | ||||||||||||||
Total investment securities | - | 1,044,890 | - | 1,044,890 | ||||||||||||||
Total available-for-sale securities | - | 13,267,446 | 14,012 | 13,281,458 | ||||||||||||||
Other assets: | ||||||||||||||||||
Derivative assets(1) | - | 79,955 | - | 79,955 | ||||||||||||||
Deposits with clearing organizations(2) | 34,000 | - | - | 34,000 | ||||||||||||||
Held-for-sale assets - trading securities(3) | 96,393 | 1,155 | 97,548 | |||||||||||||||
Total other assets measured at fair value on a | ||||||||||||||||||
recurring basis | 130,393 | 81,110 | - | 211,503 | ||||||||||||||
Total assets measured at fair value on a | ||||||||||||||||||
recurring basis(4) | $ | 130,393 | $ | 13,348,556 | $ | 14,012 | $ | 13,492,961 | ||||||||||
Liabilities | ||||||||||||||||||
Derivative liabilities(1) | $ | - | $ | 206,585 | $ | - | $ | 206,585 | ||||||||||
Held-for-sale liabilities - securities sold, not yet purchased(3) | 93,147 | 122 | - | 93,269 | ||||||||||||||
Total liabilities measured at fair value on a | ||||||||||||||||||
recurring basis(4) | $ | 93,147 | $ | 206,707 | $ | - | $ | 299,854 | ||||||||||
Nonrecurring fair value measurements: | ||||||||||||||||||
Loans receivable: | ||||||||||||||||||
One- to four-family | $ | - | $ | - | $ | 213,972 | $ | 213,972 | ||||||||||
Home equity | - | - | 46,718 | 46,718 | ||||||||||||||
Total loans receivable(5) | - | - | 260,690 | 260,690 | ||||||||||||||
REO(5) | - | - | 45,060 | 45,060 | ||||||||||||||
Total assets measured at fair value on | ||||||||||||||||||
a nonrecurring basis(6) | $ | - | $ | - | $ | 305,750 | $ | 305,750 | ||||||||||
(1)All derivative assets and liabilities are interest rate contracts. Information related to derivative instruments is detailed in Note 7─Accounting for Derivative Instruments and Hedging Activities. | ||||||||||||||||||
(2)Represents U.S. Treasury securities held by a broker-dealer subsidiary. | ||||||||||||||||||
(3)Assets and liabilities of the market making business were reclassified as held-for-sale, and are presented in the other assets and other liabilities line items, respectively, as of September 30, 2013 on the consolidated balance sheet. Information related to the classification is detailed in Note 2─Business Held-for-Sale. | ||||||||||||||||||
(4)Assets and liabilities measured at fair value on a recurring basis represented 30% and 1% of the Company's total assets and total liabilities, respectively. | ||||||||||||||||||
(5)Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet as of September 30, 2013, and for which a fair value measurement was recorded during the period. | ||||||||||||||||||
(6)Goodwill allocated to the market making reporting unit with a carrying amount of $142.4 million was written down to zero during the nine months ended September 30, 2013 and categorized in Level 3 of the fair value hierarchy. | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||
December 31, 2012: | ||||||||||||||||||
Recurring fair value measurements: | ||||||||||||||||||
Assets | ||||||||||||||||||
Trading securities | $ | 100,259 | $ | 1,011 | $ | - | $ | 101,270 | ||||||||||
Available-for-sale securities: | ||||||||||||||||||
Residential mortgage-backed securities: | ||||||||||||||||||
Agency mortgage-backed securities and CMOs | - | 12,097,298 | - | 12,097,298 | ||||||||||||||
Non-agency CMOs | - | 185,668 | 49,495 | 235,163 | ||||||||||||||
Total residential mortgage-backed securities | - | 12,282,966 | 49,495 | 12,332,461 | ||||||||||||||
Investment securities: | ||||||||||||||||||
Agency debentures | - | 527,996 | - | 527,996 | ||||||||||||||
Agency debt securities | - | 546,762 | - | 546,762 | ||||||||||||||
Municipal bonds | - | 31,346 | - | 31,346 | ||||||||||||||
Corporate bonds | - | 4,455 | - | 4,455 | ||||||||||||||
Total investment securities | - | 1,110,559 | - | 1,110,559 | ||||||||||||||
Total available-for-sale securities | - | 13,393,525 | 49,495 | 13,443,020 | ||||||||||||||
Other assets: | ||||||||||||||||||
Derivative assets(1) | - | 14,890 | - | 14,890 | ||||||||||||||
Deposits with clearing organizations(2) | 32,000 | - | - | 32,000 | ||||||||||||||
Total other assets measured at fair value on a | ||||||||||||||||||
recurring basis | 32,000 | 14,890 | - | 46,890 | ||||||||||||||
Total assets measured at fair value on a | ||||||||||||||||||
recurring basis(3) | $ | 132,259 | $ | 13,409,426 | $ | 49,495 | $ | 13,591,180 | ||||||||||
Liabilities | ||||||||||||||||||
Derivative liabilities(1) | $ | - | $ | 328,504 | $ | - | $ | 328,504 | ||||||||||
Securities sold, not yet purchased | 87,088 | 489 | - | 87,577 | ||||||||||||||
Total liabilities measured at fair value on a | ||||||||||||||||||
recurring basis(3) | $ | 87,088 | $ | 328,993 | $ | - | $ | 416,081 | ||||||||||
Nonrecurring fair value measurements:(4) | ||||||||||||||||||
Loans receivable: | ||||||||||||||||||
One- to four-family | $ | - | $ | - | $ | 752,008 | $ | 752,008 | ||||||||||
Home equity | - | - | 90,663 | 90,663 | ||||||||||||||
Total loans receivable | - | - | 842,671 | 842,671 | ||||||||||||||
REO | - | - | 75,885 | 75,885 | ||||||||||||||
Total assets measured at fair value on | ||||||||||||||||||
a nonrecurring basis | $ | - | $ | - | $ | 918,556 | $ | 918,556 | ||||||||||
(1)The majority of derivative assets and liabilities are interest rate contracts. Information related to derivative instruments is detailed in Note 7─Accounting for Derivative Instruments and Hedging Activities. | ||||||||||||||||||
(2)Represents U.S. Treasury securities held by a broker-dealer subsidiary. | ||||||||||||||||||
(3)Assets and liabilities measured at fair value on a recurring basis represented 29% and 1% of the Company's total assets and total liabilities, respectively. | ||||||||||||||||||
(4)Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet as of December 31, 2012, and for which a fair value measurement was recorded during the period. | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
One- to four-family | $ | 10,107 | $ | 32,465 | $ | 34,480 | $ | 167,220 | ||||||||||
Home equity | 10,736 | 70,999 | 46,785 | 265,764 | ||||||||||||||
Total losses on loans receivable measured at fair value | $ | 20,843 | $ | 103,464 | $ | 81,265 | $ | 432,984 | ||||||||||
(Gains) losses on REO measured at fair value | $ | -1,925 | $ | 3,016 | $ | -166 | $ | 11,033 | ||||||||||
Losses on goodwill measured at fair value | $ | - | $ | - | $ | 142,423 | $ | - | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Table Text Block] | ' | |||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||
Opening balance, July 1, 2013 | $ | 13,793 | ||||||||||||||||
Losses recognized in earnings(1) | -586 | |||||||||||||||||
Net gains recognized in other comprehensive income(2) | 1,401 | |||||||||||||||||
Settlements | -596 | |||||||||||||||||
Closing balance, September 30, 2013 | $ | 14,012 | ||||||||||||||||
(1)Losses recognized in earnings were related to instruments held at September 30, 2013 and are reported in the net impairment line item. | ||||||||||||||||||
(2)Net gains recognized in other comprehensive income are reported in the net change from available-for-sale securities line item. | ||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||
Opening balance, July 1, 2012 | $ | 90,594 | ||||||||||||||||
Losses recognized in earnings(1) | -2,318 | |||||||||||||||||
Net gains recognized in other comprehensive income(2) | 7,773 | |||||||||||||||||
Settlements | -11,965 | |||||||||||||||||
Transfer in to Level 3(3)(4) | 89,357 | |||||||||||||||||
Transfer out of Level 3(3)(5) | -31,292 | |||||||||||||||||
Closing balance, September 30, 2012 | $ | 142,149 | ||||||||||||||||
(1)Losses recognized in earnings were related to instruments held at September 30, 2012 and are reported in the net impairment line item. | ||||||||||||||||||
(2)Net gains recognized in other comprehensive income are reported in the net change from available-for-sale securities line item. | ||||||||||||||||||
(3)The Company's transfers in and out of Level 3 are as of the beginning of the reporting period on a quarterly basis. | ||||||||||||||||||
(4)Non-agency CMOs transferred in to Level 3 due to a lack of observable market data, resulting from a decrease in market activity for the securities. | ||||||||||||||||||
(5)Non-agency CMOs transferred out of Level 3 because observable market data became available for those securities. | ||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||
Opening balance, January 1, 2013 | $ | 49,495 | ||||||||||||||||
Losses recognized in earnings(1) | -2,331 | |||||||||||||||||
Net gains recognized in other comprehensive income(2) | 4,160 | |||||||||||||||||
Sales | -34,949 | |||||||||||||||||
Settlements | -2,363 | |||||||||||||||||
Closing balance, September 30, 2013 | $ | 14,012 | ||||||||||||||||
(1)Losses recognized in earnings were related to instruments held at September 30, 2013 and are reported in the net impairment line item. | ||||||||||||||||||
(2)Net gains recognized in other comprehensive income are reported in the net change from available-for-sale securities line item. | ||||||||||||||||||
Available-for-sale Securities | ||||||||||||||||||
Non-agency CMOs | ||||||||||||||||||
Opening balance, January 1, 2012 | $ | 97,106 | ||||||||||||||||
Losses recognized in earnings(1) | -8,920 | |||||||||||||||||
Net gains recognized in other comprehensive income(2) | 12,217 | |||||||||||||||||
Settlements | -19,246 | |||||||||||||||||
Transfers in to Level 3(3)(4) | 177,244 | |||||||||||||||||
Transfers out of Level 3(3)(5) | -116,252 | |||||||||||||||||
Closing balance, September 30, 2012 | $ | 142,149 | ||||||||||||||||
(1)Losses recognized in earnings were related to instruments held at September 30, 2012 and are reported in the net impairment line item. | ||||||||||||||||||
(2)Net gains recognized in other comprehensive income are reported in the net change from available-for-sale securities line item. | ||||||||||||||||||
(3)The Company's transfers in and out of Level 3 are as of the beginning of the reporting period on a quarterly basis. | ||||||||||||||||||
(4)Non-agency CMOs transferred in to Level 3 due to a lack of observable market data, resulting from a decrease in market activity for the securities. | ||||||||||||||||||
(5)Non-agency CMOs transferred out of Level 3 because observable market data became available for those securities. | ||||||||||||||||||
Fair Value By Balance Sheet Grouping [Table Text Block] | ' | |||||||||||||||||
30-Sep-13 | ||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||
Assets | ||||||||||||||||||
Cash and equivalents | $ | 1,796,181 | $ | 1,796,181 | $ | - | $ | - | $ | 1,796,181 | ||||||||
Cash required to be segregated under | ||||||||||||||||||
federal or other regulations | $ | 738,221 | $ | 738,221 | $ | - | $ | - | $ | 738,221 | ||||||||
Held-to-maturity securities: | ||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 8,255,442 | $ | - | $ | 8,285,373 | $ | - | $ | 8,285,373 | ||||||||
Agency debentures | 163,448 | - | 168,290 | - | 168,290 | |||||||||||||
Agency debt securities | 1,525,263 | - | 1,523,710 | - | 1,523,710 | |||||||||||||
Total held-to-maturity securities | $ | 9,944,153 | $ | - | $ | 9,977,373 | $ | - | $ | 9,977,373 | ||||||||
Margin receivables | $ | 6,188,708 | $ | - | $ | 6,188,708 | $ | - | $ | 6,188,708 | ||||||||
Loans receivable, net: | ||||||||||||||||||
One- to four-family | $ | 4,619,656 | $ | - | $ | - | $ | 3,903,292 | $ | 3,903,292 | ||||||||
Home equity | 3,324,010 | - | - | 3,006,621 | 3,006,621 | |||||||||||||
Consumer and other | 620,948 | - | - | 635,279 | 635,279 | |||||||||||||
Total loans receivable, net(1) | $ | 8,564,614 | $ | - | $ | - | $ | 7,545,192 | $ | 7,545,192 | ||||||||
Investment in FHLB stock | $ | 61,400 | $ | - | $ | $ | 61,400 | $ | 61,400 | |||||||||
Liabilities | ||||||||||||||||||
Deposits | $ | 25,869,797 | $ | - | $ | 25,870,010 | $ | - | $ | 25,870,010 | ||||||||
Securities sold under agreement to repurchase | $ | 4,449,665 | $ | - | $ | 4,480,874 | $ | - | $ | 4,480,874 | ||||||||
Customer payables | $ | 5,830,257 | $ | - | $ | 5,830,257 | $ | - | $ | 5,830,257 | ||||||||
FHLB advances and other borrowings | $ | 1,285,011 | $ | - | $ | 935,296 | $ | 210,733 | $ | 1,146,029 | ||||||||
Corporate debt | $ | 1,767,749 | $ | - | $ | 1,903,587 | $ | - | $ | 1,903,587 | ||||||||
(1)The carrying value of loans receivable, net includes the allowance for loan losses of $458.9 million and loans that are valued at fair value on a nonrecurring basis as of September 30, 2013. | ||||||||||||||||||
31-Dec-12 | ||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||
Assets | ||||||||||||||||||
Cash and equivalents | $ | 2,761,494 | $ | 2,761,494 | $ | - | $ | - | $ | 2,761,494 | ||||||||
Cash required to be segregated under | ||||||||||||||||||
federal or other regulations | $ | 376,898 | $ | 376,898 | $ | - | $ | - | $ | 376,898 | ||||||||
Held-to-maturity securities: | ||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 7,887,555 | $ | - | $ | 8,182,064 | $ | - | $ | 8,182,064 | ||||||||
Agency debentures | 163,434 | - | 169,769 | - | 169,769 | |||||||||||||
Agency debt securities | 1,488,959 | - | 1,558,663 | - | 1,558,663 | |||||||||||||
Total held-to-maturity securities | $ | 9,539,948 | $ | - | $ | 9,910,496 | $ | - | $ | 9,910,496 | ||||||||
Margin receivables | $ | 5,804,041 | $ | - | $ | 5,804,041 | $ | - | $ | 5,804,041 | ||||||||
Loans receivable, net: | ||||||||||||||||||
One- to four-family | $ | 5,281,702 | $ | - | $ | - | $ | 4,561,821 | $ | 4,561,821 | ||||||||
Home equity | 4,002,486 | - | - | 3,551,357 | 3,551,357 | |||||||||||||
Consumer and other | 814,535 | - | - | 838,721 | 838,721 | |||||||||||||
Total loans receivable, net(1) | $ | 10,098,723 | $ | - | $ | - | $ | 8,951,899 | $ | 8,951,899 | ||||||||
Investment in FHLB stock | $ | 67,400 | $ | - | $ | - | $ | 67,400 | $ | 67,400 | ||||||||
Liabilities | ||||||||||||||||||
Deposits | $ | 28,392,552 | $ | - | $ | 28,394,400 | $ | - | $ | 28,394,400 | ||||||||
Securities sold under agreement to repurchase | $ | 4,454,661 | $ | - | $ | 4,493,463 | $ | - | $ | 4,493,463 | ||||||||
Customer payables | $ | 4,964,922 | $ | - | $ | 4,964,922 | $ | - | $ | 4,964,922 | ||||||||
FHLB advances and other borrowings | $ | 1,260,916 | $ | - | $ | 926,750 | $ | 196,765 | $ | 1,123,515 | ||||||||
Corporate debt | $ | 1,764,982 | $ | - | $ | 1,837,736 | $ | - | $ | 1,837,736 | ||||||||
(1)The carrying value of loans receivable, net includes the allowance for loan loss of $480.7 million and loans that are valued at fair value on a nonrecurring basis as of December 31, 2012. |
AvailableforSale_and_HeldtoMat1
Available-for-Sale and Held-to-Maturity Securities (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Investments Debt And Equity Securities (Tables) [Abstract] | ' | ||||||||||||||||||||
Investments Securities [Table Text Block] | ' | ||||||||||||||||||||
Amortized Cost | Gross Unrealized / Unrecognized Gains | Gross Unrealized / Unrecognized Losses | Fair Value | ||||||||||||||||||
September 30, 2013: | |||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 12,380,442 | $ | 90,647 | $ | -248,533 | $ | 12,222,556 | |||||||||||||
Non-agency CMOs | 18,579 | 1,580 | -6,147 | 14,012 | |||||||||||||||||
Total residential mortgage-backed securities | 12,399,021 | 92,227 | -254,680 | 12,236,568 | |||||||||||||||||
Investment securities: | |||||||||||||||||||||
Agency debentures | 358,392 | - | -40,038 | 318,354 | |||||||||||||||||
Agency debt securities | 660,917 | 19,205 | -4,591 | 675,531 | |||||||||||||||||
Municipal bonds | 49,639 | - | -3,089 | 46,550 | |||||||||||||||||
Corporate bonds | 5,479 | - | -1,024 | 4,455 | |||||||||||||||||
Total investment securities | 1,074,427 | 19,205 | -48,742 | 1,044,890 | |||||||||||||||||
Total available-for-sale securities | $ | 13,473,448 | $ | 111,432 | $ | -303,422 | $ | 13,281,458 | |||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 8,255,442 | $ | 130,073 | $ | -100,142 | $ | 8,285,373 | |||||||||||||
Investment securities: | |||||||||||||||||||||
Agency debentures | 163,448 | 4,842 | - | 168,290 | |||||||||||||||||
Agency debt securities | 1,525,263 | 20,350 | -21,903 | 1,523,710 | |||||||||||||||||
Total investment securities | 1,688,711 | 25,192 | -21,903 | 1,692,000 | |||||||||||||||||
Total held-to-maturity securities | $ | 9,944,153 | $ | 155,265 | $ | -122,045 | $ | 9,977,373 | |||||||||||||
December 31, 2012: | |||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 11,881,185 | $ | 232,905 | $ | -16,792 | $ | 12,097,298 | |||||||||||||
Non-agency CMOs | 260,064 | 4,362 | -29,263 | 235,163 | |||||||||||||||||
Total residential mortgage-backed securities | 12,141,249 | 237,267 | -46,055 | 12,332,461 | |||||||||||||||||
Investment securities: | |||||||||||||||||||||
Agency debentures | 515,990 | 12,434 | -428 | 527,996 | |||||||||||||||||
Agency debt securities | 525,408 | 21,354 | - | 546,762 | |||||||||||||||||
Municipal bonds | 30,235 | 1,111 | - | 31,346 | |||||||||||||||||
Corporate bonds | 5,478 | - | -1,023 | 4,455 | |||||||||||||||||
Total investment securities | 1,077,111 | 34,899 | -1,451 | 1,110,559 | |||||||||||||||||
Total available-for-sale securities | $ | 13,218,360 | $ | 272,166 | $ | -47,506 | $ | 13,443,020 | |||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed securities and CMOs | $ | 7,887,555 | $ | 301,686 | $ | -7,177 | $ | 8,182,064 | |||||||||||||
Investment securities: | |||||||||||||||||||||
Agency debentures | 163,434 | 6,335 | - | 169,769 | |||||||||||||||||
Agency debt securities | 1,488,959 | 69,705 | -1 | 1,558,663 | |||||||||||||||||
Total investment securities | 1,652,393 | 76,040 | -1 | 1,728,432 | |||||||||||||||||
Total held-to-maturity securities | $ | 9,539,948 | $ | 377,726 | $ | -7,178 | $ | 9,910,496 | |||||||||||||
Investments Classified By Contractual Maturity Date [Table Text Block] | ' | ||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Due within one year | $ | 1,788 | $ | 1,794 | |||||||||||||||||
Due within one to five years | 61,324 | 62,567 | |||||||||||||||||||
Due within five to ten years | 1,380,016 | 1,362,186 | |||||||||||||||||||
Due after ten years | 12,030,320 | 11,854,911 | |||||||||||||||||||
Total available-for-sale securities | $ | 13,473,448 | $ | 13,281,458 | |||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||
Due within one year | $ | 55 | $ | 55 | |||||||||||||||||
Due within one to five years | 685,762 | 715,461 | |||||||||||||||||||
Due within five to ten years | 2,576,559 | 2,612,245 | |||||||||||||||||||
Due after ten years | 6,681,777 | 6,649,612 | |||||||||||||||||||
Total held-to-maturity securities | $ | 9,944,153 | $ | 9,977,373 | |||||||||||||||||
Schedule Of Unrealized Loss On Investments [Table Text Block] | ' | ||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||
Fair Value | Unrealized / Unrecognized Losses | Fair Value | Unrealized / Unrecognized Losses | Fair Value | Unrealized / Unrecognized Losses | ||||||||||||||||
September 30, 2013: | |||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed | |||||||||||||||||||||
securities and CMOs | $ | 5,634,999 | $ | -240,105 | $ | 556,432 | $ | -8,428 | $ | 6,191,431 | $ | -248,533 | |||||||||
Non-agency CMOs | - | - | 11,811 | -6,147 | 11,811 | -6,147 | |||||||||||||||
Investment securities: | |||||||||||||||||||||
Agency debentures | 318,355 | -40,038 | - | - | 318,355 | -40,038 | |||||||||||||||
Agency debt securities | 167,591 | -4,591 | - | - | 167,591 | -4,591 | |||||||||||||||
Municipal bonds | 46,549 | -3,089 | - | - | 46,549 | -3,089 | |||||||||||||||
Corporate bonds | - | - | 4,455 | -1,024 | 4,455 | -1,024 | |||||||||||||||
Total temporarily impaired | |||||||||||||||||||||
available-for-sale securities | $ | 6,167,494 | $ | -287,823 | $ | 572,698 | $ | -15,599 | $ | 6,740,192 | $ | -303,422 | |||||||||
Held-to-maturity securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed | |||||||||||||||||||||
securities and CMOs | $ | 3,557,145 | $ | -97,546 | $ | 134,198 | $ | -2,596 | $ | 3,691,343 | $ | -100,142 | |||||||||
Agency debt securities | 942,536 | -21,903 | - | - | 942,536 | -21,903 | |||||||||||||||
Total temporarily impaired | |||||||||||||||||||||
held-to-maturity securities | $ | 4,499,681 | $ | -119,449 | $ | 134,198 | $ | -2,596 | $ | 4,633,879 | $ | -122,045 | |||||||||
December 31, 2012: | |||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed | |||||||||||||||||||||
securities and CMOs | $ | 2,588,947 | $ | -16,680 | $ | 16,337 | $ | -112 | $ | 2,605,284 | $ | -16,792 | |||||||||
Non-agency CMOs | - | - | 198,635 | -29,263 | 198,635 | -29,263 | |||||||||||||||
Investment securities: | |||||||||||||||||||||
Agency debentures | 62,786 | -428 | - | - | 62,786 | -428 | |||||||||||||||
Corporate bonds | - | - | 4,455 | -1,023 | 4,455 | -1,023 | |||||||||||||||
Total temporarily impaired | |||||||||||||||||||||
available-for-sale securities | $ | 2,651,733 | $ | -17,108 | $ | 219,427 | $ | -30,398 | $ | 2,871,160 | $ | -47,506 | |||||||||
Held-to-maturity securities: | |||||||||||||||||||||
Residential mortgage-backed securities: | |||||||||||||||||||||
Agency mortgage-backed | |||||||||||||||||||||
securities and CMOs | $ | 1,240,008 | $ | -6,937 | $ | 2,427 | $ | -240 | $ | 1,242,435 | $ | -7,177 | |||||||||
Agency debt securities | 84 | -1 | - | - | 84 | -1 | |||||||||||||||
Total temporarily impaired | |||||||||||||||||||||
held-to-maturity securities | $ | 1,240,092 | $ | -6,938 | $ | 2,427 | $ | -240 | $ | 1,242,519 | $ | -7,178 | |||||||||
Other Than Temporary Impairment Significant Inputs [Table Text Block] | ' | ||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Weighted Average | Range | ||||||||||||||||||||
Default rate(1) | 4 | % | 2 | % | - | 5 | % | ||||||||||||||
Loss severity | 48 | % | 45 | % | - | 50 | % | ||||||||||||||
Prepayment rate | 8 | % | 4 | % | - | 10 | % | ||||||||||||||
(1)Represents the expected default rate for the next twelve months. | |||||||||||||||||||||
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Table Text Block] | ' | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Credit loss balance, beginning of period | $ | 165,074 | $ | 211,746 | $ | 186,722 | $ | 202,945 | |||||||||||||
Additions: | |||||||||||||||||||||
Subsequent credit impairment | 586 | 2,395 | 2,331 | 11,196 | |||||||||||||||||
Securities sold | - | -12,954 | -23,393 | -12,954 | |||||||||||||||||
Credit loss balance, end of period(1) | $ | 165,660 | $ | 201,187 | $ | 165,660 | $ | 201,187 | |||||||||||||
(1)The credit loss balance at September 30, 2013 included $120.8 million of credit losses associated with debt securities that have been factored to zero, but the Company still holds legal title to these securities until maturity or until they are sold. | |||||||||||||||||||||
Other than Temporary Impairment [Table Text Block] | ' | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Other-than-temporary impairment ("OTTI") | $ | - | $ | -2,052 | $ | -632 | $ | -16,113 | |||||||||||||
Less: noncredit portion of OTTI recognized into | |||||||||||||||||||||
(out of) other comprehensive income (loss) (before tax) | -586 | -343 | -1,699 | 4,917 | |||||||||||||||||
Net impairment | $ | -586 | $ | -2,395 | $ | -2,331 | $ | -11,196 | |||||||||||||
Gains on Loans and Investments [Table Text Block] | ' | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Gains (losses) on loans, net | $ | -554 | $ | 217 | $ | -842 | $ | 379 | |||||||||||||
Gains on securities, net | |||||||||||||||||||||
Gains on available-for-sale securities | 15,699 | 82,049 | 57,779 | 150,067 | |||||||||||||||||
Losses on available-for-sale securities | - | -2,002 | -8,401 | -4,984 | |||||||||||||||||
Losses on trading securities, net | - | -3 | -1 | -111 | |||||||||||||||||
Hedge ineffectiveness | -2,932 | -1,284 | 419 | -6,783 | |||||||||||||||||
Gains on securities, net | 12,767 | 78,760 | 49,796 | 138,189 | |||||||||||||||||
Gains on loans and securities, net | $ | 12,213 | $ | 78,977 | $ | 48,954 | $ | 138,568 |
Loans_Receivable_Net_Tables
Loans Receivable, Net (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||||||||
Total Loans Receivable, Net [Table Text Block] | ' | |||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
One- to four-family | $ | 4,712,967 | $ | 5,442,174 | ||||||||||||||||||
Home equity | 3,619,054 | 4,223,461 | ||||||||||||||||||||
Consumer and other | 641,070 | 844,942 | ||||||||||||||||||||
Total loans receivable | 8,973,091 | 10,510,577 | ||||||||||||||||||||
Unamortized premiums, net | 50,444 | 68,897 | ||||||||||||||||||||
Allowance for loan losses | -458,921 | -480,751 | ||||||||||||||||||||
Total loans receivable, net | $ | 8,564,614 | $ | 10,098,723 | ||||||||||||||||||
Recorded Investment | Allowance for Loan Losses | |||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Loans collectively evaluated for impairment | $ | 7,574,404 | $ | 9,073,326 | $ | 323,582 | $ | 309,377 | ||||||||||||||
Loans individually evaluated for impairment | ||||||||||||||||||||||
(TDRs) | 1,449,131 | 1,506,148 | 135,339 | 171,374 | ||||||||||||||||||
Total loans evaluated for impairment | $ | 9,023,535 | $ | 10,579,474 | $ | 458,921 | $ | 480,751 | ||||||||||||||
Credit Quality Indicators for Loan Portfolio [Table Text Block] | ' | |||||||||||||||||||||
Period of Conversion to Amortizing Loan | % of Home Equity Line of Credit Portfolio | |||||||||||||||||||||
Already amortizing | 11 | % | ||||||||||||||||||||
Through December 31, 2013 | 1 | % | ||||||||||||||||||||
Year ending December 31, 2014 | 8 | % | ||||||||||||||||||||
Year ending December 31, 2015 | 26 | % | ||||||||||||||||||||
Year ending December 31, 2016 | 41 | % | ||||||||||||||||||||
Year ending December 31, 2017 | 13 | % | ||||||||||||||||||||
One- to Four-Family | Home Equity | |||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
Current LTV/CLTV (1) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
<% | $ | 1,828,433 | $ | 1,324,167 | $ | 1,080,769 | $ | 927,559 | ||||||||||||||
80%-100% | 1,375,035 | 1,404,415 | 861,282 | 776,199 | ||||||||||||||||||
100%-120% | 853,381 | 1,231,448 | 789,749 | 932,033 | ||||||||||||||||||
>120% | 656,118 | 1,482,144 | 887,254 | 1,587,670 | ||||||||||||||||||
Total mortgage loans receivable | $ | 4,712,967 | $ | 5,442,174 | $ | 3,619,054 | $ | 4,223,461 | ||||||||||||||
Average estimated current LTV/CLTV (2) | 93.8 | % | 108.1 | % | 101.7 | % | 113.8 | % | ||||||||||||||
Average LTV/CLTV at loan origination (3) | 71.4 | % | 71.2 | % | 79.6 | % | 79.4 | % | ||||||||||||||
(1)Current CLTV calculations for home equity loans are based on the maximum available line for home equity lines of credit and outstanding principal balance for home equity installment loans. Current property values are updated on a quarterly basis using the most recent property value data available to the Company. For properties in which the Company did not have an updated valuation, it utilized home price indices to estimate the current property value. | ||||||||||||||||||||||
(2)The average estimated current LTV/CLTV ratio reflects the outstanding balance at the balance sheet date and the maximum available line for home equity lines of credit, divided by the estimated current value of the underlying property. | ||||||||||||||||||||||
(3)Average LTV/CLTV at loan origination calculations are based on LTV/CLTV at time of purchase for one- to four-family purchased loans and undrawn balances for home equity loans. | ||||||||||||||||||||||
One- to Four-Family | Home Equity | |||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
Documentation Type | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Full documentation | $ | 1,956,226 | $ | 2,317,933 | $ | 1,851,566 | $ | 2,166,554 | ||||||||||||||
Low/no documentation | 2,756,741 | 3,124,241 | 1,767,488 | 2,056,907 | ||||||||||||||||||
Total mortgage loans receivable | $ | 4,712,967 | $ | 5,442,174 | $ | 3,619,054 | $ | 4,223,461 | ||||||||||||||
One- to Four-Family | Home Equity | |||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
Current FICO (1) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
>r0 | $ | 2,370,515 | $ | 2,819,541 | $ | 1,896,798 | $ | 2,238,296 | ||||||||||||||
719 - 700 | 457,204 | 498,057 | 363,215 | 417,926 | ||||||||||||||||||
699 - 680 | 377,330 | 425,474 | 302,906 | 345,771 | ||||||||||||||||||
679 - 660 | 296,568 | 347,219 | 245,126 | 279,765 | ||||||||||||||||||
659 - 620 | 443,438 | 494,021 | 328,278 | 370,282 | ||||||||||||||||||
<620 | 767,912 | 857,862 | 482,731 | 571,421 | ||||||||||||||||||
Total mortgage loans receivable | $ | 4,712,967 | $ | 5,442,174 | $ | 3,619,054 | $ | 4,223,461 | ||||||||||||||
(1)FICO scores are updated on a quarterly basis; however, as of September 30, 2013 and December 31, 2012, there were some loans for which the updated FICO scores were not available. The current FICO distribution as of September 30, 2013 included original FICO scores for approximately $101 million and $10 million of one- to four-family and home equity loans, respectively. The current FICO distribution as of December 31, 2012 included original FICO scores for approximately $121 million and $20 million of one- to four-family and home equity loans, respectively. | ||||||||||||||||||||||
One- to Four-Family | Home Equity | |||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
Vintage Year | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
2003 and prior | $ | 153,797 | $ | 190,407 | $ | 166,956 | $ | 218,182 | ||||||||||||||
2004 | 448,991 | 514,283 | 293,875 | 359,737 | ||||||||||||||||||
2005 | 918,997 | 1,095,047 | 970,099 | 1,131,341 | ||||||||||||||||||
2006 | 1,865,445 | 2,123,395 | 1,702,268 | 1,962,946 | ||||||||||||||||||
2007 | 1,323,440 | 1,515,020 | 477,296 | 542,203 | ||||||||||||||||||
2008 | 2,297 | 4,022 | 8,560 | 9,052 | ||||||||||||||||||
Total mortgage loans receivable | $ | 4,712,967 | $ | 5,442,174 | $ | 3,619,054 | $ | 4,223,461 | ||||||||||||||
Average age of mortgage loans | ||||||||||||||||||||||
receivable (years) | 7.4 | 6.7 | 7.6 | 6.9 | ||||||||||||||||||
One- to Four-Family | Home Equity | |||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||
Geographic Location | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
California | $ | 2,234,379 | $ | 2,568,709 | $ | 1,136,459 | $ | 1,333,317 | ||||||||||||||
New York | 320,454 | 386,380 | 270,845 | 313,148 | ||||||||||||||||||
Florida | 317,160 | 368,319 | 259,053 | 298,860 | ||||||||||||||||||
Virginia | 212,384 | 235,019 | 164,693 | 192,143 | ||||||||||||||||||
Other states | 1,628,590 | 1,883,747 | 1,788,004 | 2,085,993 | ||||||||||||||||||
Total mortgage loans receivable | $ | 4,712,967 | $ | 5,442,174 | $ | 3,619,054 | $ | 4,223,461 | ||||||||||||||
Loans Delinquency [Table Text Block] | ' | |||||||||||||||||||||
Current | 30-89 Days Delinquent | 90-179 Days Delinquent | 180+ Days Delinquent | Total | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||
One- to four-family | $ | 4,205,950 | $ | 196,485 | $ | 71,050 | $ | 239,482 | $ | 4,712,967 | ||||||||||||
Home equity | 3,473,294 | 69,494 | 38,464 | 37,802 | 3,619,054 | |||||||||||||||||
Consumer and other | 626,424 | 12,128 | 2,518 | - | 641,070 | |||||||||||||||||
Total loans receivable | $ | 8,305,668 | $ | 278,107 | $ | 112,032 | $ | 277,284 | $ | 8,973,091 | ||||||||||||
31-Dec-12 | ||||||||||||||||||||||
One- to four-family | $ | 4,834,915 | $ | 233,796 | $ | 94,652 | $ | 278,811 | $ | 5,442,174 | ||||||||||||
Home equity | 4,028,936 | 89,347 | 64,239 | 40,939 | 4,223,461 | |||||||||||||||||
Consumer and other | 819,468 | 19,101 | 6,178 | 195 | 844,942 | |||||||||||||||||
Total loans receivable | $ | 9,683,319 | $ | 342,244 | $ | 165,069 | $ | 319,945 | $ | 10,510,577 | ||||||||||||
Allowance for Loan Losses Rollforward [Table Text Block] | ' | |||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
One- to Four- Family | Home Equity | Consumer and Other | Total | |||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 143,569 | $ | 279,037 | $ | 28,340 | $ | 450,946 | ||||||||||||||
Provision for loan losses | -23,748 | 59,927 | 1,220 | 37,399 | ||||||||||||||||||
Charge-offs | -6,700 | -29,601 | -5,647 | -41,948 | ||||||||||||||||||
Recoveries | - | 9,715 | 2,809 | 12,524 | ||||||||||||||||||
Charge-offs, net | -6,700 | -19,886 | -2,838 | -29,424 | ||||||||||||||||||
Allowance for loan losses, end of period | $ | 113,121 | $ | 319,078 | $ | 26,722 | $ | 458,921 | ||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
One- to Four- Family | Home Equity | Consumer and Other | Total | |||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 215,934 | $ | 266,883 | $ | 42,939 | $ | 525,756 | ||||||||||||||
Provision for loan losses | 24,702 | 105,022 | 11,295 | 141,019 | ||||||||||||||||||
Charge-offs | -34,236 | -120,337 | -17,074 | -171,647 | ||||||||||||||||||
Recoveries | - | 9,321 | 3,833 | 13,154 | ||||||||||||||||||
Charge-offs, net | -34,236 | -111,016 | -13,241 | -158,493 | ||||||||||||||||||
Allowance for loan losses, end of period | $ | 206,400 | $ | 260,889 | $ | 40,993 | $ | 508,282 | ||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
One- to Four- Family | Home Equity | Consumer and Other | Total | |||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 183,937 | $ | 257,333 | $ | 39,481 | $ | 480,751 | ||||||||||||||
Provision for loan losses | -48,576 | 168,465 | 6,309 | 126,198 | ||||||||||||||||||
Charge-offs | -36,740 | -132,939 | -28,448 | -198,127 | ||||||||||||||||||
Recoveries | 14,500 | 26,219 | 9,380 | 50,099 | ||||||||||||||||||
Charge-offs, net | -22,240 | -106,720 | -19,068 | -148,028 | ||||||||||||||||||
Allowance for loan losses, end of period | $ | 113,121 | $ | 319,078 | $ | 26,722 | $ | 458,921 | ||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
One- to Four- Family | Home Equity | Consumer and Other | Total | |||||||||||||||||||
Allowance for loan losses, beginning of period | $ | 314,187 | $ | 463,288 | $ | 45,341 | $ | 822,816 | ||||||||||||||
Provision for loan losses | 40,816 | 213,049 | 26,362 | 280,227 | ||||||||||||||||||
Charge-offs | -157,869 | -445,458 | -40,310 | -643,637 | ||||||||||||||||||
Recoveries | 9,266 | 30,010 | 9,600 | 48,876 | ||||||||||||||||||
Charge-offs, net | -148,603 | -415,448 | -30,710 | -594,761 | ||||||||||||||||||
Allowance for loan losses, end of period | $ | 206,400 | $ | 260,889 | $ | 40,993 | $ | 508,282 | ||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | |||||||||||||||||||||
Nonaccrual TDRs | ||||||||||||||||||||||
Accrual TDRs(1) | Current(2) | 30-89 Days Delinquent | 90+ Days Delinquent | Recorded Investment in TDRs | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||
One- to four-family | $ | 785,110 | $ | 135,490 | $ | 101,262 | $ | 174,445 | $ | 1,196,307 | ||||||||||||
Home equity | 181,870 | 28,115 | 14,768 | 28,071 | 252,824 | |||||||||||||||||
Total | $ | 966,980 | $ | 163,605 | $ | 116,030 | $ | 202,516 | $ | 1,449,131 | ||||||||||||
31-Dec-12 | ||||||||||||||||||||||
One- to four-family | $ | 785,199 | $ | 142,373 | $ | 118,834 | $ | 182,719 | $ | 1,229,125 | ||||||||||||
Home equity | 196,199 | 35,750 | 17,634 | 27,440 | 277,023 | |||||||||||||||||
Total | $ | 981,398 | $ | 178,123 | $ | 136,468 | $ | 210,159 | $ | 1,506,148 | ||||||||||||
(1)Represents TDRs that are current and have made six or more consecutive payments. | ||||||||||||||||||||||
(2)Represents TDRs that are current but have not yet made six consecutive payments and certain junior lien TDRs that have a delinquent senior lien. | ||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
One- to four-family | $ | 1,203,622 | $ | 1,067,178 | $ | 8,425 | $ | 6,867 | ||||||||||||||
Home equity | 255,899 | 259,608 | 4,857 | 2,778 | ||||||||||||||||||
Total | $ | 1,459,521 | $ | 1,326,786 | $ | 13,282 | $ | 9,645 | ||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
One- to four-family | $ | 1,211,935 | $ | 1,031,729 | $ | 25,092 | $ | 23,288 | ||||||||||||||
Home equity | 266,748 | 311,785 | 15,011 | 8,224 | ||||||||||||||||||
Total | $ | 1,478,683 | $ | 1,343,514 | $ | 40,103 | $ | 31,512 | ||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||
Recorded Investment in TDRs | Specific Valuation Allowance | Net Investment in TDRs | Recorded Investment in TDRs | Specific Valuation Allowance | Net Investment in TDRs | |||||||||||||||||
With a recorded allowance: | ||||||||||||||||||||||
One- to four-family | $ | 424,311 | $ | 67,764 | $ | 356,547 | $ | 503,557 | $ | 89,684 | $ | 413,873 | ||||||||||
Home equity | $ | 149,671 | $ | 67,575 | $ | 82,096 | $ | 185,133 | $ | 81,690 | $ | 103,443 | ||||||||||
Without a recorded allowance:(1) | ||||||||||||||||||||||
One- to four-family | $ | 771,996 | $ | - | $ | 771,996 | $ | 725,568 | $ | - | $ | 725,568 | ||||||||||
Home equity | $ | 103,153 | $ | - | $ | 103,153 | $ | 91,890 | $ | - | $ | 91,890 | ||||||||||
Total: | ||||||||||||||||||||||
One- to four-family | $ | 1,196,307 | $ | 67,764 | $ | 1,128,543 | $ | 1,229,125 | $ | 89,684 | $ | 1,139,441 | ||||||||||
Home equity | $ | 252,824 | $ | 67,575 | $ | 185,249 | $ | 277,023 | $ | 81,690 | $ | 195,333 | ||||||||||
(1)Represents loans where the discounted cash flow analysis or collateral value is equal to or exceeds the recorded investment in the loan. | ||||||||||||||||||||||
Troubled Debt Restructurings - Modifications [Table Text Block] | ' | |||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||
Interest Rate Reduction | ||||||||||||||||||||||
Number of Loans | Principal Forgiven | Principal Deferred | Re-age/ Extension/ Interest Capitalization | Other with Interest Rate Reduction | Other | Total | ||||||||||||||||
One- to four-family | 94 | $ | 4,345 | $ | 1,453 | $ | 19,917 | $ | 2,749 | $ | 5,244 | $ | 33,708 | |||||||||
Home equity | 48 | - | - | 2,304 | 783 | 1,154 | 4,241 | |||||||||||||||
Total | 142 | $ | 4,345 | $ | 1,453 | $ | 22,221 | $ | 3,532 | $ | 6,398 | $ | 37,949 | |||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||
Interest Rate Reduction | ||||||||||||||||||||||
Number of Loans | Principal Forgiven | Principal Deferred | Re-age/ Extension/ Interest Capitalization | Other with Interest Rate Reduction | Other | Total | ||||||||||||||||
One- to four-family | 148 | $ | 13,448 | $ | 5,706 | $ | 28,677 | $ | 2,579 | $ | 5,142 | $ | 55,552 | |||||||||
Home equity | 83 | 276 | 82 | 982 | 4,535 | 2,135 | 8,010 | |||||||||||||||
Total | 231 | $ | 13,724 | $ | 5,788 | $ | 29,659 | $ | 7,114 | $ | 7,277 | $ | 63,562 | |||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||
Interest Rate Reduction | ||||||||||||||||||||||
Number of Loans | Principal Forgiven | Principal Deferred | Re-age/ Extension/ Interest Capitalization | Other with Interest Rate Reduction | Other | Total | ||||||||||||||||
One- to four-family | 269 | $ | 16,240 | $ | 4,641 | $ | 61,827 | $ | 4,362 | $ | 13,668 | $ | 100,738 | |||||||||
Home equity | 200 | - | - | 5,184 | 7,012 | 5,381 | 17,577 | |||||||||||||||
Total | 469 | $ | 16,240 | $ | 4,641 | $ | 67,011 | $ | 11,374 | $ | 19,049 | $ | 118,315 | |||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||
Interest Rate Reduction | ||||||||||||||||||||||
Number of Loans | Principal Forgiven | Principal Deferred | Re-age/ Extension/ Interest Capitalization | Other with Interest Rate Reduction | Other | Total | ||||||||||||||||
One- to four-family | 528 | $ | 41,936 | $ | 32,535 | $ | 119,088 | $ | 7,793 | $ | 16,958 | $ | 218,310 | |||||||||
Home equity | 488 | 276 | 82 | 4,667 | 35,005 | 4,056 | 44,086 | |||||||||||||||
Total | 1,016 | $ | 42,212 | $ | 32,617 | $ | 123,755 | $ | 42,798 | $ | 21,014 | $ | 262,396 | |||||||||
Three Months Ended September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Principal Forgiven | Pre-TDR Weighted Average Interest Rate | Post-TDR Weighted Average Interest Rate | Principal Forgiven | Pre-TDR Weighted Average Interest Rate | Post-TDR Weighted Average Interest Rate | |||||||||||||||||
One- to four-family | $ | 1,532 | 5.1 | % | 2.3 | % | $ | 4,841 | 5.7 | % | 2.2 | % | ||||||||||
Home equity | - | 5 | % | 2.4 | % | 88 | 4.5 | % | 1.6 | % | ||||||||||||
Total | $ | 1,532 | $ | 4,929 | ||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Principal Forgiven | Pre-TDR Weighted Average Interest Rate | Post-TDR Weighted Average Interest Rate | Principal Forgiven | Pre-TDR Weighted Average Interest Rate | Post-TDR Weighted Average Interest Rate | |||||||||||||||||
One- to four-family | $ | 5,921 | 5.2 | % | 2.3 | % | $ | 12,818 | 5.9 | % | 2.4 | % | ||||||||||
Home equity | - | 4.5 | % | 1.9 | % | 96 | 4.4 | % | 1.6 | % | ||||||||||||
Total | $ | 5,921 | $ | 12,914 | ||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||||||||
One- to four-family(1) | 38 | $ | 14,544 | 111 | $ | 42,589 | ||||||||||||||||
Home equity(2) | 20 | 580 | 56 | 2,151 | ||||||||||||||||||
Total | 58 | $ | 15,124 | 167 | $ | 44,740 | ||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||||||||
One- to four-family(1) | 62 | $ | 22,741 | 208 | $ | 80,226 | ||||||||||||||||
Home equity(2) | 79 | 3,165 | 305 | 14,968 | ||||||||||||||||||
Total | 141 | $ | 25,906 | 513 | $ | 95,194 | ||||||||||||||||
(1)As of the three and nine months ended September 30, 2013, respectively, $4.4 million and $12.4 million of the recorded investment in one- to four-family loans that had a payment default in the trailing 12 months were classified as current, compared to $6.4 million and $20.6 million as of the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||||
(2)As of the three and nine months ended September 30, 2013, respectively, less than $0.1 million and $0.6 million of the recorded investment in home equity loans that had a payment default in the trailing 12 months were classified as current, compared to $2.6 million and $15.2 million as of the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||||
Modifications Current | Modifications 30-89 Days Delinquent | Modifications 90-179 Days Delinquent | Modifications 180+ Days Delinquent | Recorded Investment in Modifications | ||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||
One- to four-family | $ | 833,917 | $ | 92,743 | $ | 40,230 | $ | 88,296 | $ | 1,055,186 | ||||||||||||
Home equity | 172,876 | 11,264 | 5,923 | 7,826 | 197,889 | |||||||||||||||||
Total | $ | 1,006,793 | $ | 104,007 | $ | 46,153 | $ | 96,122 | $ | 1,253,075 | ||||||||||||
31-Dec-12 | ||||||||||||||||||||||
One- to four-family | $ | 838,020 | $ | 105,142 | $ | 43,905 | $ | 79,102 | $ | 1,066,169 | ||||||||||||
Home equity | 195,021 | 15,107 | 6,173 | 7,118 | 223,419 | |||||||||||||||||
Total | $ | 1,033,041 | $ | 120,249 | $ | 50,078 | $ | 86,220 | $ | 1,289,588 |
Accounting_for_Deriviative_Ins
Accounting for Deriviative Instruments and Hedging Activities (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Notional | Asset(1) | Liability(2) | Net(3) | ||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||
Pay-fixed rate swaps | $ | 2,480,000 | $ | 12,147 | $ | -195,418 | $ | -183,271 | |||||||||||||
Purchased options | 825,000 | 7,972 | - | 7,972 | |||||||||||||||||
Total cash flow hedges | 3,305,000 | 20,119 | -195,418 | -175,299 | |||||||||||||||||
Fair value hedges: | |||||||||||||||||||||
Pay-fixed rate swaps | 1,442,100 | 59,836 | -10,572 | 49,264 | |||||||||||||||||
Purchased forward-starting swaps | 19,250 | - | -595 | -595 | |||||||||||||||||
Total fair value hedges | 1,461,350 | 59,836 | -11,167 | 48,669 | |||||||||||||||||
Total derivatives designated as hedging instruments(4) | $ | 4,766,350 | $ | 79,955 | $ | -206,585 | $ | -126,630 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||
Pay-fixed rate swaps | $ | 2,205,000 | $ | - | $ | -310,079 | $ | -310,079 | |||||||||||||
Purchased options | 2,325,000 | 13,391 | - | 13,391 | |||||||||||||||||
Total cash flow hedges | 4,530,000 | 13,391 | -310,079 | -296,688 | |||||||||||||||||
Fair value hedges: | |||||||||||||||||||||
Pay-fixed rate swaps | 514,180 | 1,343 | -18,385 | -17,042 | |||||||||||||||||
Total derivatives designated as hedging instruments(4) | $ | 5,044,180 | $ | 14,734 | $ | -328,464 | $ | -313,730 | |||||||||||||
(1) | Reflected in the other assets line item on the consolidated balance sheet. | ||||||||||||||||||||
(2) | Reflected in the other liabilities line item on the consolidated balance sheet. | ||||||||||||||||||||
(3) | Represents derivative assets net of derivative liabilities for disclosure purposes only. | ||||||||||||||||||||
(4) | All derivatives were designated as hedging instruments as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||
Schedule Of Cash Flow Hedge Activity [Table Text Block] | ' | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Gains (losses) on derivatives recognized in OCI (effective | |||||||||||||||||||||
portion), net of tax | $ | -11,894 | $ | -21,905 | $ | 56,575 | $ | -73,602 | |||||||||||||
Losses reclassified from AOCI into earnings (effective portion), | |||||||||||||||||||||
net of tax | $ | -21,214 | $ | -20,471 | $ | -64,357 | $ | -60,329 | |||||||||||||
Cash flow hedge ineffectiveness gains (losses) (1) | $ | -74 | $ | 111 | $ | 867 | $ | -862 | |||||||||||||
(1)The cash flow hedge ineffectiveness is reflected in the gains on loans and securities, net line item on the statement of consolidated income (loss). | |||||||||||||||||||||
AOCI Related to Active and Discontinued Cash Flow Hedges [Table Text Block] | ' | ||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Accumulated other comprehensive loss balance (net of tax) related to: | |||||||||||||||||||||
Discontinued cash flow hedges | $ | -212,351 | $ | -247,983 | |||||||||||||||||
Active cash flow hedges | -119,058 | -204,358 | |||||||||||||||||||
Total cash flow hedges | $ | -331,409 | $ | -452,341 | |||||||||||||||||
AOCI Impact From Cash Flow Hedge by Type [Table Text Block] | ' | ||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Repurchase agreements | $ | -424,217 | $ | -579,763 | |||||||||||||||||
FHLB advances | -108,941 | -146,253 | |||||||||||||||||||
Home equity lines of credit | 793 | 7,854 | |||||||||||||||||||
Other | - | 116 | |||||||||||||||||||
Total balance of cash flow hedges, before tax | -532,365 | -718,046 | |||||||||||||||||||
Tax benefit | 200,956 | 265,705 | |||||||||||||||||||
Total balance of cash flow hedges, net of tax | $ | -331,409 | $ | -452,341 | |||||||||||||||||
Schedule Of Interest Rate Fair Value Hedges Amounts Reported In Statement Of Financial Performance [Table Text Block] | ' | ||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Hedging Instrument | Hedged Item | Hedge Ineffectiveness(1) | Hedging Instrument | Hedged Item | Hedge Ineffectiveness(1) | ||||||||||||||||
Agency debentures | $ | 3,204 | $ | -4,558 | $ | -1,354 | $ | -1,475 | $ | 1,481 | $ | 6 | |||||||||
Agency mortgage-backed | |||||||||||||||||||||
securities | -7,302 | 5,798 | -1,504 | -2,260 | 2,141 | -119 | |||||||||||||||
FHLB advances | - | - | - | 5,736 | -7,018 | -1,282 | |||||||||||||||
Total gains (losses) | |||||||||||||||||||||
included in earnings | $ | -4,098 | $ | 1,240 | $ | -2,858 | $ | 2,001 | $ | -3,396 | $ | -1,395 | |||||||||
Nine Months Ended September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Hedging Instrument | Hedged Item | Hedge Ineffectiveness(1) | Hedging Instrument | Hedged Item | Hedge Ineffectiveness(1) | ||||||||||||||||
Agency debentures | $ | 48,505 | $ | -47,994 | $ | 511 | $ | -27,875 | $ | 26,319 | $ | -1,556 | |||||||||
Agency mortgage-backed | |||||||||||||||||||||
securities | 20,548 | -21,507 | -959 | -7,303 | 6,745 | -558 | |||||||||||||||
FHLB advances | - | - | - | 14,939 | -18,746 | -3,807 | |||||||||||||||
Total gains (losses) | |||||||||||||||||||||
included in earnings | $ | 69,053 | $ | -69,501 | $ | -448 | $ | -20,239 | $ | 14,318 | $ | -5,921 | |||||||||
(1)Reflected in the gains on loans and securities, net line item on the consolidated statement of income (loss). |
Goodwill_Table
Goodwill (Table) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Goodwill And Other Intangibles Net (Tables) [Abstract] | ' | ||||
Schedule of Goodwill [Table Text Block] | ' | ||||
Trading & Investing Goodwill | |||||
Balance at December 31, 2011 | $ | 1,934,232 | |||
Activity | - | ||||
Balance at December 31, 2012 | 1,934,232 | ||||
Impairment of goodwill | -142,423 | ||||
Balance at September 30, 2013 | $ | 1,791,809 |
Deposits_Tables
Deposits (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Deposits [Abstract] | ' | |||||||||||||
Schedule Of Deposits By Type [Table Text Block] | ' | |||||||||||||
Amount | Weighted-Average Rate | |||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Sweep deposits(1) | $ | 19,453,183 | $ | 21,253,611 | 0.06 | % | 0.05 | % | ||||||
Complete savings deposits | 4,407,250 | 4,981,615 | 0.01 | % | 0.01 | % | ||||||||
Checking deposits | 1,022,788 | 1,055,422 | 0.03 | % | 0.03 | % | ||||||||
Other money market and savings | ||||||||||||||
deposits | 918,631 | 995,188 | 0.01 | % | 0.01 | % | ||||||||
Time deposits(2) | 67,945 | 106,716 | 0.7 | % | 1.75 | % | ||||||||
Total deposits(3) | $ | 25,869,797 | $ | 28,392,552 | 0.05 | % | 0.05 | % | ||||||
(1)A sweep product transfers brokerage customer balances to banking subsidiaries, which hold these funds as customer deposits in FDIC insured demand deposit and money market deposit accounts. | ||||||||||||||
(2)Time deposits represent certificates of deposit and brokered certificates of deposit. | ||||||||||||||
(3)As of September 30, 2013 and December 31, 2012, the Company had $120.5 million and $113.1 million in non-interest bearing deposits, respectively. |
Securities_Sold_Under_Agreemen1
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Securities Sold Under Agreements To Repurchase And Fhlb Advances And Other Borrowings [Abstract] | ' | ||||||||||||||||||
Schedule Of Maturities Summary Of Other Borrowings [Table Text Block] | ' | ||||||||||||||||||
FHLB Advances and Other Borrowings | |||||||||||||||||||
Repurchase Agreements (1) | FHLB Advances | Other | Total | Weighted Average Interest Rate | |||||||||||||||
Due within one year | $ | 3,499,665 | $ | 170,000 | $ | 11,234 | $ | 3,680,899 | 0.35 | % | |||||||||
Due between one and two years | 200,000 | 100,000 | - | 300,000 | 1.22 | % | |||||||||||||
Due between two and three years | 250,000 | 250,000 | - | 500,000 | 0.46 | % | |||||||||||||
Due between three and four years | 500,000 | 400,000 | - | 900,000 | 1.26 | % | |||||||||||||
Thereafter | - | - | 427,806 | 427,806 | 2.93 | % | |||||||||||||
Subtotal | 4,449,665 | 920,000 | 439,040 | 5,808,705 | 0.74 | % | |||||||||||||
Fair value hedge adjustments | - | 31,034 | - | 31,034 | |||||||||||||||
Deferred costs | - | -105,063 | - | -105,063 | |||||||||||||||
Total other borrowings at September 30, 2013 | $ | 4,449,665 | $ | 845,971 | $ | 439,040 | $ | 5,734,676 | 0.74 | % | |||||||||
Total other borrowings at December 31, 2012 | $ | 4,454,661 | $ | 831,749 | $ | 429,167 | $ | 5,715,577 | 0.83 | % | |||||||||
(1)The maximum amount at any month end for repurchase agreements was $4.6 billion for the nine months ended September 30, 2013 and $5.0 billion for the year ended December 31, 2012. |
Corporate_Debt_Tables
Corporate Debt (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Corporate Debt [Abstract] | ' | |||||||||||
Schedule Of Corporate Debt Instruments [Table Text Block] | ' | |||||||||||
Face Value | Discount | Net | ||||||||||
30-Sep-13 | ||||||||||||
Interest-bearing notes: | ||||||||||||
6 ¾% Notes, due 2016 | $ | 435,000 | $ | -4,479 | $ | 430,521 | ||||||
6% Notes, due 2017 | 505,000 | -3,893 | 501,107 | |||||||||
6 ⅜% Notes, due 2019 | 800,000 | -6,535 | 793,465 | |||||||||
Total interest-bearing notes | 1,740,000 | -14,907 | 1,725,093 | |||||||||
Non-interest-bearing debt: | ||||||||||||
0% Convertible debentures, due 2019 | 42,656 | - | 42,656 | |||||||||
Total corporate debt | $ | 1,782,656 | $ | -14,907 | $ | 1,767,749 | ||||||
Face Value | Discount | Net | ||||||||||
31-Dec-12 | ||||||||||||
Interest-bearing notes: | ||||||||||||
6 ¾% Notes, due 2016 | $ | 435,000 | $ | -5,738 | $ | 429,262 | ||||||
6% Notes, due 2017 | 505,000 | -4,601 | 500,399 | |||||||||
6 ⅜% Notes, due 2019 | 800,000 | -7,336 | 792,664 | |||||||||
Total interest-bearing notes | 1,740,000 | -17,675 | 1,722,325 | |||||||||
Non-interest-bearing debt: | ||||||||||||
0% Convertible debentures, due 2019 | 42,657 | - | 42,657 | |||||||||
Total corporate debt | $ | 1,782,657 | $ | -17,675 | $ | 1,764,982 |
Shareholders_Equity_Tables
Shareholders Equity (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Shareholders Equity (Tables) [Abstract] | ' | |||||||||||||
Shareholders' Equity [Table Text Block] | ' | |||||||||||||
Common Stock / Additional Paid-In Capital | Accumulated Deficit / Other Comprehensive Loss | Total | ||||||||||||
Beginning balance, December 31, 2012 | $ | 7,322,118 | $ | -2,417,648 | $ | 4,904,470 | ||||||||
Net income | - | 28,149 | 28,149 | |||||||||||
Net change from available-for-sale securities | - | -231,764 | -231,764 | |||||||||||
Net change from cash flow hedging instruments | - | 120,932 | 120,932 | |||||||||||
Other(1) | 7,645 | 142 | 7,787 | |||||||||||
Ending balance, September 30, 2013 | $ | 7,329,763 | $ | -2,500,189 | $ | 4,829,574 | ||||||||
(1)Other includes conversions of convertible debt, employee share-based compensation accounting and changes in accumulated other comprehensive loss from foreign currency translation. | ||||||||||||||
Schedule Of Accumulated Other Comprehensive Income [Table Text Block] | ' | |||||||||||||
Available-for-sale Securities | Cash Flow Hedging Instruments | Foreign Currency Translation | Total | |||||||||||
Beginning balance, June 30, 2013 | $ | -103,939 | $ | -340,729 | $ | 5,001 | $ | -439,667 | ||||||
Other comprehensive income (loss) before reclassifications | 18,824 | -11,894 | 582 | 7,512 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | -9,677 | 21,214 | - | 11,537 | ||||||||||
Net change | 9,147 | 9,320 | 582 | 19,049 | ||||||||||
Ending balance, September 30, 2013 | $ | -94,792 | $ | -331,409 | $ | 5,583 | $ | -420,618 | ||||||
Available-for-sale Securities | Cash Flow Hedging Instruments | Foreign Currency Translation | Total | |||||||||||
Beginning balance, June 30, 2012 | $ | 126,554 | $ | -469,792 | $ | 2,539 | $ | -340,699 | ||||||
Other comprehensive income (loss) before reclassifications | 87,434 | -21,905 | 1,645 | 67,174 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | -50,349 | 20,471 | - | -29,878 | ||||||||||
Net change | 37,085 | -1,434 | 1,645 | 37,296 | ||||||||||
Ending balance, September 30, 2012 | $ | 163,639 | $ | -471,226 | $ | 4,184 | $ | -303,403 | ||||||
Available-for-sale Securities | Cash Flow Hedging Instruments | Foreign Currency Translation | Total | |||||||||||
Beginning balance, December 31, 2012 | $ | 136,972 | $ | -452,341 | $ | 5,441 | $ | -309,928 | ||||||
Other comprehensive income (loss) before reclassifications | -201,104 | 56,575 | 142 | -144,387 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | -30,660 | 64,357 | - | 33,697 | ||||||||||
Net change | -231,764 | 120,932 | 142 | -110,690 | ||||||||||
Ending balance, September 30, 2013 | $ | -94,792 | $ | -331,409 | $ | 5,583 | $ | -420,618 | ||||||
Available-for-sale Securities | Cash Flow Hedging Instruments | Foreign Currency Translation | Total | |||||||||||
Beginning balance, December 31, 2011 | $ | 68,330 | $ | -457,953 | $ | 2,994 | $ | -386,629 | ||||||
Other comprehensive income (loss) before reclassifications | 186,257 | -73,602 | 1,190 | 113,845 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | -90,948 | 60,329 | - | -30,619 | ||||||||||
Net change | 95,309 | -13,273 | 1,190 | 83,226 | ||||||||||
Ending balance, September 30, 2012 | $ | 163,639 | $ | -471,226 | $ | 4,184 | $ | -303,403 | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | |||||||||||||
Accumulated Other Comprehensive Loss Components | Amount Reclassified from Accumulated Other Comprehensive Loss | Affected Line Items in the Income Statement | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
30-Sep-13 | 30-Sep-13 | |||||||||||||
Available-for-sale securities: | ||||||||||||||
$ | 15,679 | $ | 49,298 | Gains on loans and securities, net | ||||||||||
-6,002 | -18,638 | Tax expense (benefit) | ||||||||||||
$ | 9,677 | $ | 30,660 | Reclassification into earnings, net | ||||||||||
Cash flow hedging instruments: | ||||||||||||||
$ | 2,353 | $ | 7,058 | Operating interest income | ||||||||||
-37,413 | -109,360 | Operating interest expense | ||||||||||||
-35,060 | -102,302 | Reclassification into earnings, before tax | ||||||||||||
13,846 | 37,945 | Tax expense (benefit) | ||||||||||||
$ | -21,214 | $ | -64,357 | Reclassification into earnings, net | ||||||||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||
Schedule Of Earnings Per Share Reconciliation [Table Text Block] | ' | ||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Basic: | |||||||||||||||||||
Net income (loss) | $ | 47,428 | $ | -28,625 | $ | 28,149 | $ | 73,476 | |||||||||||
Basic weighted-average shares outstanding | 287,111 | 285,850 | 286,882 | 285,658 | |||||||||||||||
Basic earnings (loss) per share | $ | 0.17 | $ | -0.1 | $ | 0.1 | $ | 0.26 | |||||||||||
Diluted: | |||||||||||||||||||
Net income (loss) | $ | 47,428 | $ | -28,625 | $ | 28,149 | $ | 73,476 | |||||||||||
Basic weighted-average shares outstanding | 287,111 | 285,850 | 286,882 | 285,658 | |||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||
Weighted-average convertible debentures | 4,125 | - | 4,125 | 4,154 | |||||||||||||||
Weighted-average options and restricted | |||||||||||||||||||
stock issued to employees | 1,394 | - | 1,242 | 583 | |||||||||||||||
Diluted weighted-average shares outstanding | 292,630 | 285,850 | 292,249 | 290,395 | |||||||||||||||
Diluted earnings (loss) per share | $ | 0.16 | $ | -0.1 | $ | 0.1 | $ | 0.25 | |||||||||||
Schedule Of Antidilutive Securities Excluded From Computation Of Earnings Per Share [Table Text Block] | ' | ||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Weighted-average shares excluded as a result of the Company's net loss: | |||||||||||||||||||
Convertible debentures | N/A | 4.1 | N/A | N/A | |||||||||||||||
Stock options and restricted stock awards and units | N/A | 0.4 | N/A | N/A | |||||||||||||||
Other stock options and restricted stock awards and units | 1.2 | 2.9 | 1.8 | 2.6 | |||||||||||||||
Total | 1.2 | 7.4 | 1.8 | 2.6 |
Regulatory_Requirements_Tables
Regulatory Requirements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | ||||||||||||||||
Schedule Of Subsidiary Compliance With Regulatory Capital Requirements [Table Text Block] | ' | ||||||||||||||||
Required Net Capital | Net Capital | Excess Net Capital | |||||||||||||||
September 30, 2013: | |||||||||||||||||
E*TRADE Clearing LLC(1) | $ | 137,061 | $ | 703,752 | $ | 566,691 | |||||||||||
E*TRADE Securities LLC(1) | 250 | 215,109 | 214,859 | ||||||||||||||
G1 Execution Services, LLC(2) | 1,000 | 21,140 | 20,140 | ||||||||||||||
Other broker-dealers | 2,220 | 29,088 | 26,868 | ||||||||||||||
Total | $ | 140,531 | $ | 969,089 | $ | 828,558 | |||||||||||
December 31, 2012: | |||||||||||||||||
E*TRADE Clearing LLC(1) | $ | 123,656 | $ | 658,968 | $ | 535,312 | |||||||||||
E*TRADE Securities LLC(1) | 250 | 79,318 | 79,068 | ||||||||||||||
G1 Execution Services, LLC(2) | 1,283 | 10,598 | 9,315 | ||||||||||||||
Other broker-dealers | 4,639 | 36,070 | 31,431 | ||||||||||||||
Total | $ | 129,828 | $ | 784,954 | $ | 655,126 | |||||||||||
(1)Elected to use the Alternative method to compute net capital. | |||||||||||||||||
(2)Elected to use the Aggregate Indebtedness method to compute net capital. G1 Execution Services, LLC is the Company’s market maker and is held-for-sale as of September 30, 2013. | |||||||||||||||||
Schedule Of Compliance With Regulatory Capital Requirements Under Banking Regulations [Table Text Block] | ' | ||||||||||||||||
Actual | Minimum Required to be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||
Amount | Ratio | Amount | Ratio | Excess Capital | |||||||||||||
September 30, 2013: | |||||||||||||||||
Total capital | $ | 4,242,628 | 23.47 | % | >$ | 1,807,504 | > | 10 | % | $ | 2,435,124 | ||||||
Tier 1 capital | $ | 4,013,123 | 22.2 | % | >$ | 1,084,502 | > | 6 | % | $ | 2,928,621 | ||||||
Tier 1 leverage | $ | 4,013,123 | 9.48 | % | >$ | 2,116,802 | > | 5 | % | $ | 1,896,321 | ||||||
December 31, 2012: | |||||||||||||||||
Total capital | $ | 4,009,540 | 20.61 | % | >$ | 1,945,669 | > | 10 | % | $ | 2,063,871 | ||||||
Tier 1 capital | $ | 3,762,242 | 19.34 | % | >$ | 1,167,401 | > | 6 | % | $ | 2,594,841 | ||||||
Tier 1 leverage | $ | 3,762,242 | 8.68 | % | >$ | 2,167,136 | > | 5 | % | $ | 1,595,106 |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
Schedule Of Segment Reporting Information By Segment [Table Text Block] | ' | |||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||
Trading and Investing | Balance Sheet Management | Corporate/ Other | Total | |||||||||||
Net operating interest income | $ | 133,378 | $ | 107,469 | $ | - | $ | 240,847 | ||||||
Total non-interest income | 162,735 | 13,220 | - | 175,955 | ||||||||||
Total net revenue | 296,113 | 120,689 | - | 416,802 | ||||||||||
Provision for loan losses | - | 37,399 | - | 37,399 | ||||||||||
Total operating expense | 170,344 | 43,489 | 56,911 | 270,744 | ||||||||||
Income (loss) before other income (expense) and income taxes | 125,769 | 39,801 | -56,911 | 108,659 | ||||||||||
Total other income (expense) | - | - | -28,729 | -28,729 | ||||||||||
Income (loss) before income taxes | $ | 125,769 | $ | 39,801 | $ | -85,640 | 79,930 | |||||||
Income tax expense | 32,502 | |||||||||||||
Net income | $ | 47,428 | ||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||
Trading and Investing | Balance Sheet Management | Corporate/ Other | Total | |||||||||||
Net operating interest income | $ | 156,805 | $ | 104,072 | $ | - | $ | 260,877 | ||||||
Total non-interest income | 150,662 | 78,502 | -6 | 229,158 | ||||||||||
Total net revenue | 307,467 | 182,574 | -6 | 490,035 | ||||||||||
Provision for loan losses | - | 141,019 | - | 141,019 | ||||||||||
Total operating expense | 180,463 | 53,204 | 55,366 | 289,033 | ||||||||||
Income (loss) before other income (expense) and income taxes | 127,004 | -11,649 | -55,372 | 59,983 | ||||||||||
Total other income (expense) | - | - | -96,286 | -96,286 | ||||||||||
Income (loss) before income taxes | $ | 127,004 | $ | -11,649 | $ | -151,658 | -36,303 | |||||||
Income tax benefit | -7,678 | |||||||||||||
Net loss | $ | -28,625 | ||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||
Trading and Investing | Balance Sheet Management | Corporate/ Other | Total | |||||||||||
Net operating interest income | $ | 400,729 | $ | 323,988 | $ | - | $ | 724,717 | ||||||
Total non-interest income | 500,656 | 51,226 | -1 | 551,881 | ||||||||||
Total net revenue | 901,385 | 375,214 | -1 | 1,276,598 | ||||||||||
Provision for loan losses | - | 126,198 | - | 126,198 | ||||||||||
Total operating expense | 687,361 | 134,990 | 157,855 | 980,206 | ||||||||||
Income (loss) before other income (expense) and income taxes | 214,024 | 114,026 | -157,856 | 170,194 | ||||||||||
Total other income (expense) | - | - | -80,678 | -80,678 | ||||||||||
Income (loss) before income taxes | $ | 214,024 | $ | 114,026 | $ | -238,534 | 89,516 | |||||||
Income tax expense | 61,367 | |||||||||||||
Net income | $ | 28,149 | ||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||
Trading and Investing | Balance Sheet Management | Corporate/ Other | Total | |||||||||||
Net operating interest income | $ | 492,456 | $ | 332,374 | $ | 4 | $ | 824,834 | ||||||
Total non-interest income | 472,771 | 134,254 | -19 | 607,006 | ||||||||||
Total net revenue | 965,227 | 466,628 | -15 | 1,431,840 | ||||||||||
Provision for loan losses | - | 280,227 | - | 280,227 | ||||||||||
Total operating expense | 580,113 | 168,407 | 128,207 | 876,727 | ||||||||||
Income (loss) before other income (expense) and income taxes | 385,114 | 17,994 | -128,222 | 274,886 | ||||||||||
Total other income (expense) | - | - | -184,655 | -184,655 | ||||||||||
Income (loss) before income taxes | $ | 385,114 | $ | 17,994 | $ | -312,877 | 90,231 | |||||||
Income tax expense | 16,755 | |||||||||||||
Net income | $ | 73,476 | ||||||||||||
Reconciliation Of Assets From Segment To Consolidated [Table Text Block] | ' | |||||||||||||
Segment Assets | ||||||||||||||
Trading and Investing | Balance Sheet Management | Corporate/Other | Total | |||||||||||
As of September 30, 2013 | $ | 10,087,260 | $ | 34,868,901 | $ | 591,318 | $ | 45,547,479 | ||||||
As of December 31, 2012 | $ | 9,505,280 | $ | 37,305,600 | $ | 575,859 | $ | 47,386,739 | ||||||
Organization_Basis_of_Presenta2
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
One- To Four-Family [Member] | One- To Four-Family [Member] | Home Equity [Member] | Home Equity [Member] | Consumer And Other [Member] | Consumer And Other [Member] | Citadel [Member] | Citadel [Member] | Citadel [Member] | Citadel [Member] | BNY ConvergEx Group, LLC [Member] | BNY ConvergEx Group, LLC [Member] | BNY ConvergEx Group, LLC [Member] | BNY ConvergEx Group, LLC [Member] | |||
Basis Of Presentation Detail [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment Ownership Percentage Low End | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost Method Investment Ownership Percentage High End | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transactions, Revenues From Transactions With Related Party, Percentage Of Net Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.00% | 1.00% | 1.00% | ' | ' | ' | ' |
Related Party Transactions, Expenses From Transactions With Related Party, Percentage Of Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.00% | 1.00% | 1.00% |
Qualitative Component Of Allowance For Loan Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses, Qualitative Component, Amount | $52,000,000 | $44,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses, Qualitative Component, Percentage | ' | ' | 19.00% | 17.00% | 19.00% | 17.00% | 16.00% | 17.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Home Equity Line of Credit Require to Repay in Full, Amount | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Margin Receivables Detail [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Margin Receivables Securities Pledged As Collateral | 8,700,000,000 | 8,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Margin Receivables Securities Pledged To Clearing Organizations | 1,700,000,000 | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Uncertainties [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits, Period Decrease | -157,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits | 334,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $243,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Organization_Basis_of_Presenta3
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Details - Offsetting) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Offsetting Assets: | ' | ' |
Securities Borrowed - Gross Amounts of Recognized Assets | $422,737,000 | $407,331,000 |
Securities Borrowed - Net Amounts Presented in the Statement of Financial Position | 422,737,000 | 407,331,000 |
Securities Borrowed - Gross Amounts Not Offset in the Statement of Financial Position - Financial Instruments | -132,104,000 | -142,410,000 |
Securities Borrowed - Gross Amounts Not Offset in the Statement of Financial Position - Collateral Received | -280,871,000 | -259,490,000 |
Securities Borrowed - Net Amount | 9,762,000 | 5,431,000 |
Derivative Asset - Gross Amounts of Recognized Assets | 79,955,000 | 14,734,000 |
Derivative Asset - Net Amounts Presented in the Statement of Financial Position | 79,955,000 | 14,734,000 |
Derivative Asset - Gross Amounts Not Offset in the Statement of Financial Position - Financial Instruments | -44,651,000 | -5,176,000 |
Derivative Asset - Gross Amounts Not Offset in the Statement of Financial Position - Collateral Received | -16,129,000 | -8,427,000 |
Derivative Asset - Net Amount | 19,175,000 | 1,131,000 |
Offsetting Assets - Gross Amounts of Recognized Assets | 502,692,000 | 422,065,000 |
Offsetting Assets - Net Amounts Presented in the Statement of Financial Position | 502,692,000 | 422,065,000 |
Offsetting Assets - Gross Amounts Not Offset in the Statement of Financial Position - Financial Instruments | -176,755,000 | -147,586,000 |
Offsetting Assets - Gross Amounts Not Offset in the Statement of Financial Position - Collateral Received | -297,000,000 | -267,917,000 |
Offsetting Assets - Net Amount | 28,937,000 | 6,562,000 |
Offsetting Liabilities: | ' | ' |
REPOs - Gross Amounts of Recognized Liabilities | 4,449,665,000 | 4,454,661,000 |
REPOs - Net Amounts Presented in the Statement of Financial Position | 4,449,665,000 | 4,454,661,000 |
REPOs - Gross Amounts Not Offset in the Statement of Financial Position - Collateral Pledged | -4,449,417,000 | -4,454,659,000 |
REPOs - Net Amount | 248,000 | 2,000 |
Securities Loaned - Gross Amounts of Recognized Liabilities | 831,830,000 | 735,720,000 |
Securities Loaned - Net Amounts Presented in the Statement of Financial Position | 831,830,000 | 735,720,000 |
Securities Loaned - Gross Amounts Not Offset in the Statement of Financial Position - Financial Instruments | -132,104,000 | -142,410,000 |
Securities Loaned - Gross Amounts Not Offset in the Statement of Financial Position - Collateral Pledged | -643,038,000 | -554,400,000 |
Securities Loaned - Net Amount | 56,688,000 | 38,910,000 |
Derivative Liability - Gross Amounts of Recognized Liabilities | 206,585,000 | 328,464,000 |
Derivative Liability - Net Amounts Presented in the Statement of Financial Position | 206,585,000 | 328,464,000 |
Derivative Liability - Gross Amounts Not Offset in the Statement of Financial Position - Financial Instruments | -44,651,000 | -5,176,000 |
Derivative Liability - Gross Amounts Not Offset in the Statement of Financial Position - Collateral Pledged | -161,934,000 | -323,288,000 |
Derivative Liability - Net Amount | 0 | 0 |
Offsetting Liabilities - Gross Amounts of Recognized Liabilities | 5,488,080,000 | 5,518,845,000 |
Offsetting Liabilities - Net Amounts Presented in the Statement of Financial Position | 5,488,080,000 | 5,518,845,000 |
Offsetting Liabilities - Gross Amounts Not Offset in the Statement of Financial Position - Financial Instruments | -176,755,000 | -147,586,000 |
Offsetting Liabilities - Gross Amounts Not Offset in the Statement of Financial Position - Collateral Pledged | -5,254,389,000 | -5,332,347,000 |
Offsetting Liabilities - Net Amount | 56,936,000 | 38,912,000 |
Offsetting Footnotes: | ' | ' |
Interest Payable Excluded From Gross Amounts of Derivatives | 22,500,000 | 14,100,000 |
Securities Borrowed, Transacted Through Clearing Company | 264,700,000 | 133,800,000 |
Securities Loaned, Transacted Through Clearing Company | $538,300,000 | $419,600,000 |
Business_HeldForSale_Details
Business Held-For-Sale (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets Assets | ' | ' |
Cash And Cash Equivalents | $9,336 | $7,618 |
Trading Securites | 97,548 | 101,252 |
Property And Equipment, Net | 1,112 | 1,517 |
Goodwill | ' | 142,423 |
Other Intangibles Net | 21,161 | 21,898 |
Other Assets | 47,071 | 37,096 |
Total Assets | 176,228 | 311,804 |
Liabilities | ' | ' |
Other Liabilities | 102,448 | 96,463 |
Total Liabilities | $102,448 | $96,463 |
Operating_Interest_Income_and_2
Operating Interest Income and Operating Interest Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating interest income: | ' | ' | ' | ' |
Loans | $96,365 | $118,747 | $305,222 | $383,242 |
Available-for-sale securities | 68,470 | 82,661 | 199,029 | 286,647 |
Held-to-maturity securites | 64,486 | 61,923 | 183,819 | 175,574 |
Margin receivables | 56,073 | 55,465 | 164,459 | 158,873 |
Securities borrowed and other | 15,521 | 15,181 | 50,276 | 46,422 |
Total operating interest income | 300,915 | 333,977 | 902,805 | 1,050,758 |
Operating interest expense: | ' | ' | ' | ' |
Securities sold under agreements to repurchase | -37,431 | -40,136 | -111,144 | -121,373 |
FHLB advances and other borrowings | -17,152 | -24,153 | -51,183 | -74,979 |
Deposits | -3,306 | -5,885 | -9,680 | -20,838 |
Customer payables and other | -2,179 | -2,926 | -6,081 | -8,734 |
Total operating interest expense | -60,068 | -73,100 | -178,088 | -225,924 |
Net operating interest income | $240,847 | $260,877 | $724,717 | $824,834 |
Fair_Value_Disclosures_Details
Fair Value Disclosures (Details - Inputs) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Weighted Average [Member] | Mortgage Backed Securities Only Issued By US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Coupon rate | 3.10% |
Weighted Average [Member] | Collateralized Mortgage Obligations Issued By US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Coupon rate | 3.28% |
Weighted Average [Member] | Non-agency CMOs [Member] | Fair Value, Measurements, Recurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Coupon rate | 3.14% |
Weighted Average [Member] | Non-agency CMOs [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Yield | 3.00% |
Default rate | 32.00% |
Loss severity | 28.00% |
Prepayment rate | 13.00% |
Weighted Average [Member] | Mortgage Backed Securities Issued By Private Enterprises Underlying Loans [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Coupon rate | 2.86% |
Maturity (years) | '20 |
Maximum [Member] | Non-agency CMOs [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Yield | 10.00% |
Default rate | 100.00% |
Loss severity | 65.00% |
Prepayment rate | 39.00% |
Maximum [Member] | Mortgage Backed Securities Issued By Private Enterprises Underlying Loans [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Coupon rate | 6.28% |
Maturity (years) | ' 25 |
Maximum [Member] | One- To Four-Family [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Appraised Value | 2,500 |
Maximum [Member] | Home Equity [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Appraised Value | 1,600 |
Maximum [Member] | Real Estate Owned [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Appraised Value | 1,163 |
Minimum [Member] | Non-agency CMOs [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Yield | 3.00% |
Default rate | 3.00% |
Loss severity | 0.00% |
Prepayment rate | 4.00% |
Minimum [Member] | Mortgage Backed Securities Issued By Private Enterprises Underlying Loans [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Coupon rate | 2.72% |
Maturity (years) | ' 20 |
Minimum [Member] | One- To Four-Family [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Appraised Value | 4 |
Minimum [Member] | Home Equity [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Appraised Value | 9 |
Minimum [Member] | Real Estate Owned [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Appraised Value | 1 |
Average [member] | One- To Four-Family [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Appraised Value | 387 |
Average [member] | Home Equity [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Appraised Value | 290 |
Average [member] | Real Estate Owned [Member] | Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Appraised Value | 285 |
Fair_Value_Disclosures_Details1
Fair Value Disclosures (Details - Recurring and Nonrecurring) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Trading securities | $0 | ' | $0 | ' | $101,270 |
Total available-for-sale securities | 13,281,458 | ' | 13,281,458 | ' | 13,443,020 |
Held-for-sale assets - trading securities | 97,548 | ' | 97,548 | ' | 101,252 |
Fair Value Disclosure Details Recurring (Textuals) [Abstract] | ' | ' | ' | ' | ' |
Assets measured at fair value on recurring basis percentage of total assets | 30.00% | ' | 30.00% | ' | 29.00% |
Liabilities measured at fair value on recurring basis percentage of total liabilities | 1.00% | ' | 1.00% | ' | 1.00% |
Fair Value Disclosures Details Nonrecurring (Textuals) [Abstract] | ' | ' | ' | ' | ' |
Impairment of goodwill | 0 | 0 | 142,423 | 0 | ' |
Gains Losses On Nonrecurring Fair Value Measurements [Abstract] | ' | ' | ' | ' | ' |
One- to four-family | 10,107 | 32,465 | 34,480 | 167,220 | ' |
Home equity | 10,736 | 70,999 | 46,785 | 265,764 | ' |
Total losses on loans receivable measured at fair value | 20,843 | 103,464 | 81,265 | 432,984 | ' |
REO | -1,925 | 3,016 | -166 | 11,033 | ' |
Goodwill | 0 | 0 | 142,423 | 0 | ' |
Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Trading securities | ' | ' | ' | ' | 101,270 |
Total available-for-sale securities | 13,281,458 | ' | 13,281,458 | ' | 13,443,020 |
Derivative assets | 79,955 | ' | 79,955 | ' | 14,890 |
Deposits with clearing organizations | 34,000 | ' | 34,000 | ' | 32,000 |
Held-for-sale assets - trading securities | 97,548 | ' | 97,548 | ' | ' |
Total other assets measured at fair value on a recurring basis | 211,503 | ' | 211,503 | ' | 46,890 |
Total assets measured at fair value on a recurring basis | 13,492,961 | ' | 13,492,961 | ' | 13,591,180 |
Derivative liabilities | 206,585 | ' | 206,585 | ' | 328,504 |
Held-for-sale liabilities - securities sold, not yet purchased | 93,269 | ' | 93,269 | ' | ' |
Securities sold, not yet purchased | ' | ' | ' | ' | 87,577 |
Total liabilities measured at fair value on a recurring basis | 299,854 | ' | 299,854 | ' | 416,081 |
Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Loans receivable | 260,690 | ' | 260,690 | ' | 842,671 |
REO | 45,060 | ' | 45,060 | ' | 75,885 |
Total Assets Measured at Fair Value On A Nonrecurring Basis | 305,750 | ' | 305,750 | ' | 918,556 |
Fair Value, Measurements, Nonrecurring [Member] | One- To Four-Family [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Loans receivable | 213,972 | ' | 213,972 | ' | 752,008 |
Fair Value, Measurements, Nonrecurring [Member] | Home Equity [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Loans receivable | 46,718 | ' | 46,718 | ' | 90,663 |
Total residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 12,236,568 | ' | 12,236,568 | ' | 12,332,461 |
Agency mortgage-backed securities and CMOs [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 12,222,556 | ' | 12,222,556 | ' | 12,097,298 |
Non-agency CMOs [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 14,012 | ' | 14,012 | ' | 235,163 |
Investment Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 1,044,890 | ' | 1,044,890 | ' | 1,110,559 |
Agency Debentures [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 318,354 | ' | 318,354 | ' | 527,996 |
Agency Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 675,531 | ' | 675,531 | ' | 546,762 |
Municipal Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 46,550 | ' | 46,550 | ' | 31,346 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 4,455 | ' | 4,455 | ' | 4,455 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Trading securities | ' | ' | ' | ' | 100,259 |
Deposits with clearing organizations | 34,000 | ' | 34,000 | ' | 32,000 |
Held-for-sale assets - trading securities | 96,393 | ' | 96,393 | ' | ' |
Total other assets measured at fair value on a recurring basis | 130,393 | ' | 130,393 | ' | 32,000 |
Total assets measured at fair value on a recurring basis | 130,393 | ' | 130,393 | ' | 132,259 |
Held-for-sale liabilities - securities sold, not yet purchased | 93,147 | ' | 93,147 | ' | ' |
Securities sold, not yet purchased | ' | ' | ' | ' | 87,088 |
Total liabilities measured at fair value on a recurring basis | 93,147 | ' | 93,147 | ' | 87,088 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Trading securities | ' | ' | ' | ' | 1,011 |
Total available-for-sale securities | 13,267,446 | ' | 13,267,446 | ' | 13,393,525 |
Derivative assets | 79,955 | ' | 79,955 | ' | 14,890 |
Held-for-sale assets - trading securities | 1,155 | ' | 1,155 | ' | ' |
Total other assets measured at fair value on a recurring basis | 81,110 | ' | 81,110 | ' | 14,890 |
Total assets measured at fair value on a recurring basis | 13,348,556 | ' | 13,348,556 | ' | 13,409,426 |
Derivative liabilities | 206,585 | ' | 206,585 | ' | 328,504 |
Held-for-sale liabilities - securities sold, not yet purchased | 122 | ' | 122 | ' | ' |
Securities sold, not yet purchased | ' | ' | ' | ' | 489 |
Total liabilities measured at fair value on a recurring basis | 206,707 | ' | 206,707 | ' | 328,993 |
Level 2 [Member] | Total residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 12,222,556 | ' | 12,222,556 | ' | 12,282,966 |
Level 2 [Member] | Agency mortgage-backed securities and CMOs [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 12,222,556 | ' | 12,222,556 | ' | 12,097,298 |
Level 2 [Member] | Non-agency CMOs [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | ' | ' | ' | ' | 185,668 |
Level 2 [Member] | Investment Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 1,044,890 | ' | 1,044,890 | ' | 1,110,559 |
Level 2 [Member] | Agency Debentures [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 318,354 | ' | 318,354 | ' | 527,996 |
Level 2 [Member] | Agency Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 675,531 | ' | 675,531 | ' | 546,762 |
Level 2 [Member] | Municipal Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 46,550 | ' | 46,550 | ' | 31,346 |
Level 2 [Member] | Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 4,455 | ' | 4,455 | ' | 4,455 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 14,012 | ' | 14,012 | ' | 49,495 |
Total assets measured at fair value on a recurring basis | 14,012 | ' | 14,012 | ' | 49,495 |
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Loans receivable | 260,690 | ' | 260,690 | ' | 842,671 |
REO | 45,060 | ' | 45,060 | ' | 75,885 |
Total Assets Measured at Fair Value On A Nonrecurring Basis | 305,750 | ' | 305,750 | ' | 918,556 |
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | One- To Four-Family [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Loans receivable | 213,972 | ' | 213,972 | ' | 752,008 |
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Home Equity [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Loans receivable | 46,718 | ' | 46,718 | ' | 90,663 |
Level 3 [Member] | Total residential mortgage-backed securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | 14,012 | ' | 14,012 | ' | 49,495 |
Level 3 [Member] | Non-agency CMOs [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Total available-for-sale securities | $14,012 | ' | $14,012 | ' | $49,495 |
Fair_Value_Disclosures_Details2
Fair Value Disclosures (Details - Level 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value Disclosure Details Recurring Level 3 (Textuals) [Abstract] | ' | ' | ' | ' |
Assets measured at fair value level 3 recurring percentage of total assets | ' | ' | 'less than 1% | ' |
Liabilities measured at fair value level 3 recurring percentage of total liabilities | ' | ' | 'none | ' |
Non-agency CMOs [Member] | ' | ' | ' | ' |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Balance, beginning of period | $13,793 | $90,594 | $49,495 | $97,106 |
Realized and unrealized gains (losses) included in earnings | -586 | -2,318 | -2,331 | -8,920 |
Realized and unrealized gains (losses) included in other comprehensive income | 1,401 | 7,773 | 4,160 | 12,217 |
Sales | ' | ' | -34,949 | ' |
Settlements | -596 | -11,965 | -2,363 | -19,246 |
Transfers in to Level 3 | ' | 89,357 | ' | 177,244 |
Transfers out of Level 3 | ' | -31,292 | ' | -116,252 |
Balance, end of period | $14,012 | $142,149 | $14,012 | $142,149 |
Fair_Value_Disclosures_Details3
Fair Value Disclosures (Details - FV of Financial Instruments) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and equivalents | $1,796,181 | $2,761,494 | $2,825,012 | $2,099,839 |
Cash required to be segregated under federal or other regulations | 738,221 | 376,898 | ' | ' |
Held-to-maturity securities | 9,944,153 | 9,539,948 | ' | ' |
Margin Receivables | 6,188,708 | 5,804,041 | ' | ' |
Loans receivable, net | 8,564,614 | 10,098,723 | ' | ' |
Investment in FHLB stock | 61,400 | 67,400 | ' | ' |
Deposits | 25,869,797 | 28,392,552 | ' | ' |
Securities sold under agreements to repurchase | 4,449,665 | 4,454,661 | ' | ' |
Customer Payables | 5,830,257 | 4,964,922 | ' | ' |
FHLB advances and other borrowings | 1,285,011 | 1,260,916 | ' | ' |
Corporate debt | 1,767,749 | 1,764,982 | ' | ' |
Allowance for loan losses | 458,921 | 480,751 | ' | ' |
Agency mortgage-backed securities and CMOs [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | 8,255,442 | 7,887,555 | ' | ' |
Agency Debentures [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | 163,448 | 163,434 | ' | ' |
Agency Debt Securities [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | 1,525,263 | 1,488,959 | ' | ' |
Carrying Value [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and equivalents | 1,796,181 | 2,761,494 | ' | ' |
Cash required to be segregated under federal or other regulations | 738,221 | 376,898 | ' | ' |
Held-to-maturity securities | 9,944,153 | 9,539,948 | ' | ' |
Margin Receivables | 6,188,708 | 5,804,041 | ' | ' |
Loans receivable, net | 8,564,614 | 10,098,723 | ' | ' |
Investment in FHLB stock | 61,400 | 67,400 | ' | ' |
Deposits | 25,869,797 | 28,392,552 | ' | ' |
Securities sold under agreements to repurchase | 4,449,665 | 4,454,661 | ' | ' |
Customer Payables | 5,830,257 | 4,964,922 | ' | ' |
FHLB advances and other borrowings | 1,285,011 | 1,260,916 | ' | ' |
Corporate debt | 1,767,749 | 1,764,982 | ' | ' |
Carrying Value [Member] | One- To Four-Family [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Loans receivable, net | 4,619,656 | 5,281,702 | ' | ' |
Carrying Value [Member] | Home Equity [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Loans receivable, net | 3,324,010 | 4,002,486 | ' | ' |
Carrying Value [Member] | Consumer And Other [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Loans receivable, net | 620,948 | 814,535 | ' | ' |
Carrying Value [Member] | Agency mortgage-backed securities and CMOs [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | 8,255,442 | 7,887,555 | ' | ' |
Carrying Value [Member] | Agency Debentures [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | 163,448 | 163,434 | ' | ' |
Carrying Value [Member] | Agency Debt Securities [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | 1,525,263 | 1,488,959 | ' | ' |
Fair Value [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and equivalents | 1,796,181 | 2,761,494 | ' | ' |
Cash required to be segregated under federal or other regulations | 738,221 | 376,898 | ' | ' |
Held-to-maturity securities | 9,977,373 | 9,910,496 | ' | ' |
Margin Receivables | 6,188,708 | 5,804,041 | ' | ' |
Loans receivable, net | 7,545,192 | 8,951,899 | ' | ' |
Investment in FHLB stock | 61,400 | 67,400 | ' | ' |
Deposits | 25,870,010 | 28,394,400 | ' | ' |
Securities sold under agreements to repurchase | 4,480,874 | 4,493,463 | ' | ' |
Customer Payables | 5,830,257 | 4,964,922 | ' | ' |
FHLB advances and other borrowings | 1,146,029 | 1,123,515 | ' | ' |
Corporate debt | 1,903,587 | 1,837,736 | ' | ' |
Fair Value [Member] | Level 1 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Cash and equivalents | 1,796,181 | 2,761,494 | ' | ' |
Cash required to be segregated under federal or other regulations | 738,221 | 376,898 | ' | ' |
Fair Value [Member] | Level 2 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | 9,977,373 | 9,910,496 | ' | ' |
Margin Receivables | 6,188,708 | 5,804,041 | ' | ' |
Deposits | 25,870,010 | 28,394,400 | ' | ' |
Securities sold under agreements to repurchase | 4,480,874 | 4,493,463 | ' | ' |
Customer Payables | 5,830,257 | 4,964,922 | ' | ' |
FHLB advances and other borrowings | 935,296 | 926,750 | ' | ' |
Corporate debt | 1,903,587 | 1,837,736 | ' | ' |
Fair Value [Member] | Level 3 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Loans receivable, net | 7,545,192 | 8,951,899 | ' | ' |
Investment in FHLB stock | 61,400 | 67,400 | ' | ' |
FHLB advances and other borrowings | 210,733 | 196,765 | ' | ' |
Fair Value [Member] | One- To Four-Family [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Loans receivable, net | 3,903,292 | 4,561,821 | ' | ' |
Fair Value [Member] | One- To Four-Family [Member] | Level 3 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Loans receivable, net | 3,903,292 | 4,561,821 | ' | ' |
Fair Value [Member] | Home Equity [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Loans receivable, net | 3,006,621 | 3,551,357 | ' | ' |
Fair Value [Member] | Home Equity [Member] | Level 3 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Loans receivable, net | 3,006,621 | 3,551,357 | ' | ' |
Fair Value [Member] | Consumer And Other [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Loans receivable, net | 635,279 | 838,721 | ' | ' |
Fair Value [Member] | Consumer And Other [Member] | Level 3 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Loans receivable, net | 635,279 | 838,721 | ' | ' |
Fair Value [Member] | Agency mortgage-backed securities and CMOs [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | 8,285,373 | 8,182,064 | ' | ' |
Fair Value [Member] | Agency mortgage-backed securities and CMOs [Member] | Level 2 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | 8,285,373 | 8,182,064 | ' | ' |
Fair Value [Member] | Agency Debentures [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | 168,290 | 169,769 | ' | ' |
Fair Value [Member] | Agency Debentures [Member] | Level 2 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | 168,290 | 169,769 | ' | ' |
Fair Value [Member] | Agency Debt Securities [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | 1,523,710 | 1,558,663 | ' | ' |
Fair Value [Member] | Agency Debt Securities [Member] | Level 2 [Member] | ' | ' | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Held-to-maturity securities | $1,523,710 | $1,558,663 | ' | ' |
AvailableforSale_and_HeldtoMat2
Available-for-Sale and Held-to-Maturity Securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $13,473,448 | $13,218,360 |
Gross Unrealized Gains | 111,432 | 272,166 |
Gross Unrealized Losses | -303,422 | -47,506 |
Fair Value | 13,281,458 | 13,443,020 |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 9,944,153 | 9,539,948 |
Gross Unrecognized Gains | 155,265 | 377,726 |
Gross Unrecognized Losses | -122,045 | -7,178 |
Fair Value | 9,977,373 | 9,910,496 |
Agency mortgage-backed securities and CMOs [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 8,255,442 | 7,887,555 |
Gross Unrecognized Gains | 130,073 | 301,686 |
Gross Unrecognized Losses | -100,142 | -7,177 |
Fair Value | 8,285,373 | 8,182,064 |
Investment Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 1,688,711 | 1,652,393 |
Gross Unrecognized Gains | 25,192 | 76,040 |
Gross Unrecognized Losses | -21,903 | -1 |
Fair Value | 1,692,000 | 1,728,432 |
Agency Debentures [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 163,448 | 163,434 |
Gross Unrecognized Gains | 4,842 | 6,335 |
Fair Value | 168,290 | 169,769 |
Agency Debt Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Amortized Cost | 1,525,263 | 1,488,959 |
Gross Unrecognized Gains | 20,350 | 69,705 |
Gross Unrecognized Losses | -21,903 | -1 |
Fair Value | 1,523,710 | 1,558,663 |
Total residential mortgage-backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 12,399,021 | 12,141,249 |
Gross Unrealized Gains | 92,227 | 237,267 |
Gross Unrealized Losses | -254,680 | -46,055 |
Fair Value | 12,236,568 | 12,332,461 |
Agency mortgage-backed securities and CMOs [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 12,380,442 | 11,881,185 |
Gross Unrealized Gains | 90,647 | 232,905 |
Gross Unrealized Losses | -248,533 | -16,792 |
Fair Value | 12,222,556 | 12,097,298 |
Non-agency CMOs [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 18,579 | 260,064 |
Gross Unrealized Gains | 1,580 | 4,362 |
Gross Unrealized Losses | -6,147 | -29,263 |
Fair Value | 14,012 | 235,163 |
Investment Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,074,427 | 1,077,111 |
Gross Unrealized Gains | 19,205 | 34,899 |
Gross Unrealized Losses | -48,742 | -1,451 |
Fair Value | 1,044,890 | 1,110,559 |
Agency Debentures [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 358,392 | 515,990 |
Gross Unrealized Gains | ' | 12,434 |
Gross Unrealized Losses | -40,038 | -428 |
Fair Value | 318,354 | 527,996 |
Agency Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 660,917 | 525,408 |
Gross Unrealized Gains | 19,205 | 21,354 |
Gross Unrealized Losses | -4,591 | ' |
Fair Value | 675,531 | 546,762 |
Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 49,639 | 30,235 |
Gross Unrealized Gains | ' | 1,111 |
Gross Unrealized Losses | -3,089 | ' |
Fair Value | 46,550 | 31,346 |
Corporate Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 5,479 | 5,478 |
Gross Unrealized Losses | -1,024 | -1,023 |
Fair Value | $4,455 | $4,455 |
AvailableforSale_and_HeldtoMat3
Available-for-Sale and Held-to-Maturity Securities (Details - Maturity) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Available-for-sale Securities, Debt Maturities [Abstract] | ' | ' |
Available-for-sale Securities, Debt Maturities, within One Year, Amortized Cost | $1,788,000 | ' |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Amortized Cost | 61,324,000 | ' |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Amortized Cost | 1,380,016,000 | ' |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost | 12,030,320,000 | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost | 13,473,448,000 | ' |
Available-for-sale Securities, Debt Maturities, within One Year, Fair Value | 1,794,000 | ' |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value | 62,567,000 | ' |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value | 1,362,186,000 | ' |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 11,854,911,000 | ' |
Available-for-sale Securities, Debt Securities | 13,281,458,000 | ' |
Held To Maturity Securities Debt Maturities [Abstract] | ' | ' |
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount | 55,000 | ' |
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount | 685,762,000 | ' |
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount | 2,576,559,000 | ' |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount | 6,681,777,000 | ' |
Held-to-maturity Securities Debt Maturities Net, Carrying Amount | 9,944,153,000 | ' |
Held-to-maturity Securities, Debt Maturities, within One Year, Fair Value | 55,000 | ' |
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Fair Value | 715,461,000 | ' |
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Fair Value | 2,612,245,000 | ' |
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value | 6,649,612,000 | ' |
Held-to-maturity Securities Debt Maturities, Fair Value | 9,977,373,000 | ' |
Available For Sale And Held To Maturity Textuals [Abstract] | ' | ' |
Available-for-sale securities pledged to creditors with the right to sell or repledge | 2,200,000,000 | 2,800,000,000 |
Held-to-maturity securities pledged to creditors with the right to sell or repledge | $3,200,000,000 | $2,900,000,000 |
AvailableforSale_and_HeldtoMat4
Available-for-Sale and Held-to-Maturity Securities (Details - OTTI) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $6,167,494 | $2,651,733 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 572,698 | 219,427 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,740,192 | 2,871,160 |
Available-for-sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses | -287,823 | -17,108 |
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses | -15,599 | -30,398 |
Available-for-sale Securities Continuous Unrealized Loss Position Aggregate Losses | -303,422 | -47,506 |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 4,499,681 | 1,240,092 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 134,198 | 2,427 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 4,633,879 | 1,242,519 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | -119,449 | -6,938 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | -2,596 | -240 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses | -122,045 | -7,178 |
Agency mortgage-backed securities and CMOs [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,557,145 | 1,240,008 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 134,198 | 2,427 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 3,691,343 | 1,242,435 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | -97,546 | -6,937 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses | -2,596 | -240 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses | -100,142 | -7,177 |
Agency Debt Securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 942,536 | 84 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 942,536 | 84 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | -21,903 | -1 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Losses | -21,903 | -1 |
Agency mortgage-backed securities and CMOs [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 5,634,999 | 2,588,947 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 556,432 | 16,337 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,191,431 | 2,605,284 |
Available-for-sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses | -240,105 | -16,680 |
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses | -8,428 | -112 |
Available-for-sale Securities Continuous Unrealized Loss Position Aggregate Losses | -248,533 | -16,792 |
Non-agency CMOs [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 11,811 | 198,635 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 11,811 | 198,635 |
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses | -6,147 | -29,263 |
Available-for-sale Securities Continuous Unrealized Loss Position Aggregate Losses | -6,147 | -29,263 |
Agency Debentures [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 318,355 | 62,786 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 318,355 | 62,786 |
Available-for-sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses | -40,038 | -428 |
Available-for-sale Securities Continuous Unrealized Loss Position Aggregate Losses | -40,038 | -428 |
Agency Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 167,591 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 167,591 | ' |
Available-for-sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses | -4,591 | ' |
Available-for-sale Securities Continuous Unrealized Loss Position Aggregate Losses | -4,591 | ' |
Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 46,549 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 46,549 | ' |
Available-for-sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses | -3,089 | ' |
Available-for-sale Securities Continuous Unrealized Loss Position Aggregate Losses | -3,089 | ' |
Corporate Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,455 | 4,455 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 4,455 | 4,455 |
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses | -1,024 | -1,023 |
Available-for-sale Securities Continuous Unrealized Loss Position Aggregate Losses | ($1,024) | ($1,023) |
AvailableforSale_and_HeldtoMat5
Available-for-Sale and Held-to-Maturity Securities (Details - Other) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Non-agency CMOs [Member] | Weighted Average [Member] | Maximum [Member] | Minimum [Member] | |||||
Other Than Temporary Impairment Significant Inputs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Default rate | ' | ' | ' | ' | ' | 4.00% | 5.00% | 2.00% |
Loss severity | ' | ' | ' | ' | ' | 48.00% | 50.00% | 45.00% |
Prepayment rate | ' | ' | ' | ' | ' | 8.00% | 10.00% | 4.00% |
Other Than Temporary Impairment Credit Losses Recognized In Earnings Roll Forward [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Credit loss balance, beginning of period | $165,074,000 | $211,746,000 | $186,722,000 | $202,945,000 | ' | ' | ' | ' |
Subsequent credit impairment | 586,000 | 2,395,000 | 2,331,000 | 11,196,000 | ' | ' | ' | ' |
Securities sold | ' | -12,954,000 | -23,393,000 | -12,954,000 | ' | ' | ' | ' |
Credit loss balance, end of period | 165,660,000 | 201,187,000 | 165,660,000 | 201,187,000 | ' | ' | ' | ' |
Other Than Temporary Impairment, Credit Losses on Securities Written Off (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Other Than Temporary Impairment Credit Losses Recognized In Earnings, Securities Factored To Zero | ' | ' | 120,800,000 | ' | ' | ' | ' | ' |
Components of Other Than Temporary Impairment [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Other-than-temporary impairment (OTTI) | 0 | -2,052,000 | -632,000 | -16,113,000 | ' | ' | ' | ' |
Less: noncredit portion of OTTI recognized into (out of) other comprehensive income (loss) (before tax) | -586,000 | -343,000 | -1,699,000 | 4,917,000 | ' | ' | ' | ' |
Net impairment | -586,000 | -2,395,000 | -2,331,000 | -11,196,000 | ' | ' | ' | ' |
Components of Gains on Loans and Securities Net [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) on loans, net | -554,000 | 217,000 | -842,000 | 379,000 | ' | ' | ' | ' |
Gains on securities, net | ' | ' | ' | ' | ' | ' | ' | ' |
Gains on available-for-sale securities | 15,699,000 | 82,049,000 | 57,779,000 | 150,067,000 | ' | ' | ' | ' |
Losses on available-for-sale securities | ' | -2,002,000 | -8,401,000 | -4,984,000 | ' | ' | ' | ' |
Losses on trading securities, net | ' | -3,000 | -1,000 | -111,000 | ' | ' | ' | ' |
Hedge ineffectiveness | -2,932,000 | -1,284,000 | 419,000 | -6,783,000 | ' | ' | ' | ' |
Gains on securities, net | 12,767,000 | 78,760,000 | 49,796,000 | 138,189,000 | ' | ' | ' | ' |
Gains on loans and securities, net | 12,213,000 | 78,977,000 | 48,954,000 | 138,568,000 | ' | ' | ' | ' |
Other Than Temporary Impairment Securities (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Other Than Temporarily Impaired Securities Book Value Before Impairment | ' | ' | 18,600,000 | ' | ' | ' | ' | ' |
Available For Sale Securities Sold [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities Sold, Amortized Cost | ' | ' | ' | ' | 230,500,000 | ' | ' | ' |
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | ' | ' | ' | ' | 227,000,000 | ' | ' | ' |
Available-for-sale Securities, Gross Realized Gain (Loss) | ' | ' | ' | ' | ($3,800,000) | ' | ' | ' |
Loans_Receivable_Net_Details
Loans Receivable, Net (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans Receivable, Net [Abstract] | ' | ' |
One- to four-family | $4,712,967 | $5,442,174 |
Home equity | 3,619,054 | 4,223,461 |
Consumer and other | 641,070 | 844,942 |
Total loans receivable | 8,973,091 | 10,510,577 |
Unamortized premiums, net | 50,444 | 68,897 |
Allowance for loan losses | -458,921 | -480,751 |
Total loans receivable, net | 8,564,614 | 10,098,723 |
Loans Evaluated For Impairment Methodology [Abstract] | ' | ' |
Loans collectively evaluated for impairment, carrying value | 7,574,404 | 9,073,326 |
Loans individually evaluated for impairment (TDRs), carrying value | 1,449,131 | 1,506,148 |
Total recorded investment in loans receivable | 9,023,535 | 10,579,474 |
Loans collectively evaluated for impairment, allowance for loan losses | 323,582 | 309,377 |
Loans individually evaluated for impairment (TDRs), allowance for loan losses | 135,339 | 171,374 |
Allowance for loan losses | $458,921 | $480,751 |
Draw Period [Abstract] | ' | ' |
Already amortizing | 11.00% | ' |
Through December 31, 2013 | 1.00% | ' |
Year ending December 31, 2014 | 8.00% | ' |
Year ending December 31, 2015 | 26.00% | ' |
Year ending December 31, 2016 | 41.00% | ' |
Year ending December 31, 2017 | 13.00% | ' |
After year ending December 31, 2014 | 80.00% | ' |
Loans_Receivable_Net_Details_C
Loans Receivable, Net (Details - Credit Quality) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | $8,973,091 | $10,510,577 |
One- To Four-Family [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 4,712,967 | 5,442,174 |
Average estimated current LTV/CLTV | 93.80% | 108.10% |
Average LTV/CLTV at loan origination, One- To Four-Family | 71.40% | 71.20% |
Average age of mortgage loans receivable (years) | 7.4 | 6.7 |
One- To Four-Family [Member] | California [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 2,234,379 | 2,568,709 |
One- To Four-Family [Member] | New York [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 320,454 | 386,380 |
One- To Four-Family [Member] | Florida [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 317,160 | 368,319 |
One- To Four-Family [Member] | Virginia [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 212,384 | 235,019 |
One- To Four-Family [Member] | Other States [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,628,590 | 1,883,747 |
One- To Four-Family [Member] | Vintage Year 2003 And Prior [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 153,797 | 190,407 |
One- To Four-Family [Member] | Vintage Year 2004 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 448,991 | 514,283 |
One- To Four-Family [Member] | Vintage Year 2005 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 918,997 | 1,095,047 |
One- To Four-Family [Member] | Vintage Year 2006 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,865,445 | 2,123,395 |
One- To Four-Family [Member] | Vintage Year 2007 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,323,440 | 1,515,020 |
One- To Four-Family [Member] | Vintage Year 2008 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 2,297 | 4,022 |
One- To Four-Family [Member] | Greater Than 720 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 2,370,515 | 2,819,541 |
One- To Four-Family [Member] | Between 719 And 700 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 457,204 | 498,057 |
One- To Four-Family [Member] | Between 699 And 680 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 377,330 | 425,474 |
One- To Four-Family [Member] | Between 679 And 660 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 296,568 | 347,219 |
One- To Four-Family [Member] | Between 659 And 620 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 443,438 | 494,021 |
One- To Four-Family [Member] | Less Than 620 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 767,912 | 857,862 |
One- To Four-Family [Member] | FICO Score At Origination Included [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 101,000 | 121,000 |
One- To Four-Family [Member] | Full Documentation [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,956,226 | 2,317,933 |
One- To Four-Family [Member] | Low Or No Documentation [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 2,756,741 | 3,124,241 |
One- To Four-Family [Member] | Current Loan To Value Or Combined Loan To Value Ratio Less Then 80 Percent [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,828,433 | 1,324,167 |
One- To Four-Family [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 80 And 100 Percent [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,375,035 | 1,404,415 |
One- To Four-Family [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 100 And 120 Percent [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 853,381 | 1,231,448 |
One- To Four-Family [Member] | Current Loan To Value Or Combined Loan To Value Ratio Greater Then 120 Percent [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 656,118 | 1,482,144 |
Home Equity [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 3,619,054 | 4,223,461 |
Average estimated current LTV/CLTV | 101.70% | 113.80% |
Average LTV/CLTV at loan origination, One- To Four-Family | 79.60% | 79.40% |
Home equity in first lien position, percentage | 15.00% | ' |
Home equity in first and second lien positions, percentage | 'less than 1% | ' |
Average age of mortgage loans receivable (years) | 7.6 | 6.9 |
Home Equity [Member] | California [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,136,459 | 1,333,317 |
Home Equity [Member] | New York [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 270,845 | 313,148 |
Home Equity [Member] | Florida [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 259,053 | 298,860 |
Home Equity [Member] | Virginia [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 164,693 | 192,143 |
Home Equity [Member] | Other States [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,788,004 | 2,085,993 |
Home Equity [Member] | Vintage Year 2003 And Prior [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 166,956 | 218,182 |
Home Equity [Member] | Vintage Year 2004 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 293,875 | 359,737 |
Home Equity [Member] | Vintage Year 2005 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 970,099 | 1,131,341 |
Home Equity [Member] | Vintage Year 2006 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,702,268 | 1,962,946 |
Home Equity [Member] | Vintage Year 2007 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 477,296 | 542,203 |
Home Equity [Member] | Vintage Year 2008 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 8,560 | 9,052 |
Home Equity [Member] | Greater Than 720 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,896,798 | 2,238,296 |
Home Equity [Member] | Between 719 And 700 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 363,215 | 417,926 |
Home Equity [Member] | Between 699 And 680 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 302,906 | 345,771 |
Home Equity [Member] | Between 679 And 660 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 245,126 | 279,765 |
Home Equity [Member] | Between 659 And 620 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 328,278 | 370,282 |
Home Equity [Member] | Less Than 620 [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 482,731 | 571,421 |
Home Equity [Member] | FICO Score At Origination Included [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 10,000 | 20,000 |
Home Equity [Member] | Full Documentation [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,851,566 | 2,166,554 |
Home Equity [Member] | Low Or No Documentation [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,767,488 | 2,056,907 |
Home Equity [Member] | Current Loan To Value Or Combined Loan To Value Ratio Less Then 80 Percent [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 1,080,769 | 927,559 |
Home Equity [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 80 And 100 Percent [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 861,282 | 776,199 |
Home Equity [Member] | Current Loan To Value Or Combined Loan To Value Ratio Between 100 And 120 Percent [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 789,749 | 932,033 |
Home Equity [Member] | Current Loan To Value Or Combined Loan To Value Ratio Greater Then 120 Percent [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | 887,254 | 1,587,670 |
Consumer And Other [Member] | ' | ' |
Credit Quality Indicators [Line Items] | ' | ' |
Total mortgage loans receivable | $641,070 | $844,942 |
Loans_Receivable_Net_Details_A
Loans Receivable, Net (Details - Aging) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment, Delinquency Status [Line Items] | ' | ' |
Loans receivable, Current | $8,305,668,000 | $9,683,319,000 |
Loans receivable, 30 to 89 days delinquent | 278,107,000 | 342,244,000 |
Loans receivable, 90 to 179 days delinquent | 112,032,000 | 165,069,000 |
Loans receivable, 180+ days delinquent | 277,284,000 | 319,945,000 |
Total loans receivable | 8,973,091,000 | 10,510,577,000 |
One- To Four-Family [Member] | ' | ' |
Financing Receivable, Recorded Investment, Delinquency Status [Line Items] | ' | ' |
Loans receivable, Current | 4,205,950,000 | 4,834,915,000 |
Loans receivable, 30 to 89 days delinquent | 196,485,000 | 233,796,000 |
Loans receivable, 90 to 179 days delinquent | 71,050,000 | 94,652,000 |
Loans receivable, 180+ days delinquent | 239,482,000 | 278,811,000 |
Total loans receivable | 4,712,967,000 | 5,442,174,000 |
Financing Receivable Recorded Investment Nonaccrual Status | 547,300,000 | 639,100,000 |
Home Equity [Member] | ' | ' |
Financing Receivable, Recorded Investment, Delinquency Status [Line Items] | ' | ' |
Loans receivable, Current | 3,473,294,000 | 4,028,936,000 |
Loans receivable, 30 to 89 days delinquent | 69,494,000 | 89,347,000 |
Loans receivable, 90 to 179 days delinquent | 38,464,000 | 64,239,000 |
Loans receivable, 180+ days delinquent | 37,802,000 | 40,939,000 |
Total loans receivable | 3,619,054,000 | 4,223,461,000 |
Financing Receivable Recorded Investment Nonaccrual Status | 180,300,000 | 247,500,000 |
Consumer And Other [Member] | ' | ' |
Financing Receivable, Recorded Investment, Delinquency Status [Line Items] | ' | ' |
Loans receivable, Current | 626,424,000 | 819,468,000 |
Loans receivable, 30 to 89 days delinquent | 12,128,000 | 19,101,000 |
Loans receivable, 90 to 179 days delinquent | 2,518,000 | 6,178,000 |
Loans receivable, 180+ days delinquent | 0 | 195,000 |
Total loans receivable | 641,070,000 | 844,942,000 |
Financing Receivable Recorded Investment Nonaccrual Status | $2,500,000 | $6,400,000 |
Loans_Receivable_Net_Details_A1
Loans Receivable, Net (Details - Allowance) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Financing Receivables, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Allowance for loan losses, beginning of period | $450,946,000 | $525,756,000 | $480,751,000 | $822,816,000 |
Provision for loan losses | 37,399,000 | 141,019,000 | 126,198,000 | 280,227,000 |
Charge-offs | -41,948,000 | -171,647,000 | -198,127,000 | -643,637,000 |
Recoveries | 12,524,000 | 13,154,000 | 50,099,000 | 48,876,000 |
Charge-offs, net | -29,424,000 | -158,493,000 | -148,028,000 | -594,761,000 |
Allowance for loan losses, end of period | 458,921,000 | 508,282,000 | 458,921,000 | 508,282,000 |
Allowance for loan losses, Net Change | ' | ' | -21,800,000 | ' |
One- To Four-Family [Member] | ' | ' | ' | ' |
Financing Receivables, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Allowance for loan losses, beginning of period | 143,569,000 | 215,934,000 | 183,937,000 | 314,187,000 |
Provision for loan losses | -23,748,000 | 24,702,000 | -48,576,000 | 40,816,000 |
Charge-offs | -6,700,000 | -34,236,000 | -36,740,000 | -157,869,000 |
Recoveries | 0 | 0 | 14,500,000 | 9,266,000 |
Charge-offs, net | -6,700,000 | -34,236,000 | -22,240,000 | -148,603,000 |
Allowance for loan losses, end of period | 113,121,000 | 206,400,000 | 113,121,000 | 206,400,000 |
Home Equity [Member] | ' | ' | ' | ' |
Financing Receivables, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Allowance for loan losses, beginning of period | 279,037,000 | 266,883,000 | 257,333,000 | 463,288,000 |
Provision for loan losses | 59,927,000 | 105,022,000 | 168,465,000 | 213,049,000 |
Charge-offs | -29,601,000 | -120,337,000 | -132,939,000 | -445,458,000 |
Recoveries | 9,715,000 | 9,321,000 | 26,219,000 | 30,010,000 |
Charge-offs, net | -19,886,000 | -111,016,000 | -106,720,000 | -415,448,000 |
Allowance for loan losses, end of period | 319,078,000 | 260,889,000 | 319,078,000 | 260,889,000 |
Consumer And Other [Member] | ' | ' | ' | ' |
Financing Receivables, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Allowance for loan losses, beginning of period | 28,340,000 | 42,939,000 | 39,481,000 | 45,341,000 |
Provision for loan losses | 1,220,000 | 11,295,000 | 6,309,000 | 26,362,000 |
Charge-offs | -5,647,000 | -17,074,000 | -28,448,000 | -40,310,000 |
Recoveries | 2,809,000 | 3,833,000 | 9,380,000 | 9,600,000 |
Charge-offs, net | -2,838,000 | -13,241,000 | -19,068,000 | -30,710,000 |
Allowance for loan losses, end of period | $26,722,000 | $40,993,000 | $26,722,000 | $40,993,000 |
Loans_Receivable_Net_Details_T
Loans Receivable, Net (Details - TDRs Accrual and Nonaccrual) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired Loans, Accrual and Nonaccrual Status [Line Items] | ' | ' |
Accrual TDRs | $966,980,000 | $981,398,000 |
Nonaccrual TDRs, Current | 163,605,000 | 178,123,000 |
Nonaccrual TDRs, 30-89 Days Delinquent | 116,030,000 | 136,468,000 |
Nonaccrual TDRs, 90+ Days Delinquent | 202,516,000 | 210,159,000 |
Recorded Investment in TDRs | 1,449,131,000 | 1,506,148,000 |
One- To Four-Family [Member] | ' | ' |
Financing Receivable, Impaired Loans, Accrual and Nonaccrual Status [Line Items] | ' | ' |
Accrual TDRs | 785,110,000 | 785,199,000 |
Nonaccrual TDRs, Current | 135,490,000 | 142,373,000 |
Nonaccrual TDRs, 30-89 Days Delinquent | 101,262,000 | 118,834,000 |
Nonaccrual TDRs, 90+ Days Delinquent | 174,445,000 | 182,719,000 |
Recorded Investment in TDRs | 1,196,307,000 | 1,229,125,000 |
TDR unpaid principal balance | 1,200,000,000 | 1,200,000,000 |
Home Equity [Member] | ' | ' |
Financing Receivable, Impaired Loans, Accrual and Nonaccrual Status [Line Items] | ' | ' |
Accrual TDRs | 181,870,000 | 196,199,000 |
Nonaccrual TDRs, Current | 28,115,000 | 35,750,000 |
Nonaccrual TDRs, 30-89 Days Delinquent | 14,768,000 | 17,634,000 |
Nonaccrual TDRs, 90+ Days Delinquent | 28,071,000 | 27,440,000 |
Recorded Investment in TDRs | $252,824,000 | $277,023,000 |
Loans_Receivable_Net_Details_T1
Loans Receivable, Net (Details - TDRs Average Investment and Income) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Average Recorded Investment And Interest Income Recognized [Line Items] | ' | ' | ' | ' |
TDRs, Average Recorded Investment | $1,459,521 | $1,326,786 | $1,478,683 | $1,343,514 |
TDRs, Interest Income Recognized | 13,282 | 9,645 | 40,103 | 31,512 |
One- To Four-Family [Member] | ' | ' | ' | ' |
Average Recorded Investment And Interest Income Recognized [Line Items] | ' | ' | ' | ' |
TDRs, Average Recorded Investment | 1,203,622 | 1,067,178 | 1,211,935 | 1,031,729 |
TDRs, Interest Income Recognized | 8,425 | 6,867 | 25,092 | 23,288 |
Home Equity [Member] | ' | ' | ' | ' |
Average Recorded Investment And Interest Income Recognized [Line Items] | ' | ' | ' | ' |
TDRs, Average Recorded Investment | 255,899 | 259,608 | 266,748 | 311,785 |
TDRs, Interest Income Recognized | $4,857 | $2,778 | $15,011 | $8,224 |
Loans_Receivable_Net_Details_T2
Loans Receivable, Net (Details - TDRs Specific Valuation Allowance) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ' | ' |
Impaired Financing Receivable, Recorded Investment | $1,449,131 | $1,506,148 |
One- To Four-Family [Member] | ' | ' |
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ' | ' |
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 424,311 | 503,557 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 771,996 | 725,568 |
Impaired Financing Receivable, Recorded Investment | 1,196,307 | 1,229,125 |
Impaired Financing Receivable, Related Allowance | 67,764 | 89,684 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 356,547 | 413,873 |
Impaired Financing Receivable, with No Related Allowance, Net Impaired | 771,996 | 725,568 |
Impaired Financing Receivables, Net Investment, Total | 1,128,543 | 1,139,441 |
Home Equity [Member] | ' | ' |
Impaired Financing Receivable With And With No Related Allowance [Line Items] | ' | ' |
Impaired Financing Receivable, With Related Allowance, Recorded Investment | 149,671 | 185,133 |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 103,153 | 91,890 |
Impaired Financing Receivable, Recorded Investment | 252,824 | 277,023 |
Impaired Financing Receivable, Related Allowance | 67,575 | 81,690 |
Impaired Financing Receivable, with Related Allowance, Net Investment | 82,096 | 103,443 |
Impaired Financing Receivable, with No Related Allowance, Net Impaired | 103,153 | 91,890 |
Impaired Financing Receivables, Net Investment, Total | $185,249 | $195,333 |
Loans_Receivable_Net_Details_M
Loans Receivable, Net (Details - Modifications Types and Financial Impact) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled Debt Restructurings - Modifications, Number of Contracts | 142 | 231 | 469 | 1,016 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Forgiven | $4,345 | $13,724 | $16,240 | $42,212 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Deferred | 1,453 | 5,788 | 4,641 | 32,617 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Re-age, Extension, and Interest Capitalization | 22,221 | 29,659 | 67,011 | 123,755 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Other Concession | 3,532 | 7,114 | 11,374 | 42,798 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Other Concessions | 6,398 | 7,277 | 19,049 | 21,014 |
Troubled Debt Restructurings - Modifications, Total Interest Rate Reduction | 37,949 | 63,562 | 118,315 | 262,396 |
Troubled Debt Restructurings - Modifications, Principal Forgiven | 1,532 | 4,929 | 5,921 | 12,914 |
One- To Four-Family [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled Debt Restructurings - Modifications, Number of Contracts | 94 | 148 | 269 | 528 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Forgiven | 4,345 | 13,448 | 16,240 | 41,936 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Deferred | 1,453 | 5,706 | 4,641 | 32,535 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Re-age, Extension, and Interest Capitalization | 19,917 | 28,677 | 61,827 | 119,088 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Other Concession | 2,749 | 2,579 | 4,362 | 7,793 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Other Concessions | 5,244 | 5,142 | 13,668 | 16,958 |
Troubled Debt Restructurings - Modifications, Total Interest Rate Reduction | 33,708 | 55,552 | 100,738 | 218,310 |
Troubled Debt Restructurings - Modifications, Principal Forgiven | 1,532 | 4,841 | 5,921 | 12,818 |
Troubled Debt Restructurings - Modifications, Pre-Modification Weighted Average Interest Rate | 5.10% | 5.70% | 5.20% | 5.90% |
Troubled Debt Restructurings - Modifications, Post-Modification Weighted Average Interest Rate | 2.30% | 2.20% | 2.30% | 2.40% |
Home Equity [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled Debt Restructurings - Modifications, Number of Contracts | 48 | 83 | 200 | 488 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Forgiven | ' | 276 | ' | 276 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Principal Deferred | ' | 82 | ' | 82 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Re-age, Extension, and Interest Capitalization | 2,304 | 982 | 5,184 | 4,667 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Interest Rate Reduction and Other Concession | 783 | 4,535 | 7,012 | 35,005 |
Troubled Debt Restructurings - Modifications, Nature and Extent of Transaction, Other Concessions | 1,154 | 2,135 | 5,381 | 4,056 |
Troubled Debt Restructurings - Modifications, Total Interest Rate Reduction | 4,241 | 8,010 | 17,577 | 44,086 |
Troubled Debt Restructurings - Modifications, Principal Forgiven | ' | $88 | ' | $96 |
Troubled Debt Restructurings - Modifications, Pre-Modification Weighted Average Interest Rate | 5.00% | 4.50% | 4.50% | 4.40% |
Troubled Debt Restructurings - Modifications, Post-Modification Weighted Average Interest Rate | 2.40% | 1.60% | 1.90% | 1.60% |
Loans_Receivable_Net_Details_M1
Loans Receivable, Net (Details - Modifications Subsequent Defaults) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Modifications That Subsequently Defaulted [Line Items] | ' | ' | ' | ' |
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | 58 | 141 | 167 | 513 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | $15,124,000 | $25,906,000 | $44,740,000 | $95,194,000 |
One- To Four-Family [Member] | ' | ' | ' | ' |
Modifications That Subsequently Defaulted [Line Items] | ' | ' | ' | ' |
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | 38 | 62 | 111 | 208 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | 14,544,000 | 22,741,000 | 42,589,000 | 80,226,000 |
Troubled Debt Restructurings - Modifications that Subsequently Defaulted That Were Classifed As Current Year End | 4,400,000 | 6,400,000 | 12,400,000 | 20,600,000 |
Home Equity [Member] | ' | ' | ' | ' |
Modifications That Subsequently Defaulted [Line Items] | ' | ' | ' | ' |
Troubled Debt Restructurings - Modifications, Payment Defaults, Number of Loans | 20 | 79 | 56 | 305 |
Troubled Debt Restructurings - Modifications, Payment Defaults, Recorded Investment | 580,000 | 3,165,000 | 2,151,000 | 14,968,000 |
Troubled Debt Restructurings - Modifications that Subsequently Defaulted That Were Classifed As Current Year End | $100,000 | $2,600,000 | $600,000 | $15,200,000 |
Loans_Receivable_Net_Details_M2
Loans Receivable, Net (Details - Modifications) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Trouble Debt Restructuring, Modifications [Line Items] | ' | ' |
Troubled Debt Restructurings - Modifications, Current | $1,006,793 | $1,033,041 |
Troubled Debt Restructurings - Modifications, 30-89 Days Delinquent | 104,007 | 120,249 |
Troubled Debt Restructurings - Modifications, 90-179 Days Delinquent | 46,153 | 50,078 |
Troubled Debt Restructurings - Modifications, 180+ Days Delinquent | 96,122 | 86,220 |
Total Recorded Investment in Troubled Debt Restructurings - Modifications | 1,253,075 | 1,289,588 |
One- To Four-Family [Member] | ' | ' |
Financing Receivable, Trouble Debt Restructuring, Modifications [Line Items] | ' | ' |
Troubled Debt Restructurings - Modifications, Current | 833,917 | 838,020 |
Troubled Debt Restructurings - Modifications, 30-89 Days Delinquent | 92,743 | 105,142 |
Troubled Debt Restructurings - Modifications, 90-179 Days Delinquent | 40,230 | 43,905 |
Troubled Debt Restructurings - Modifications, 180+ Days Delinquent | 88,296 | 79,102 |
Total Recorded Investment in Troubled Debt Restructurings - Modifications | 1,055,186 | 1,066,169 |
Home Equity [Member] | ' | ' |
Financing Receivable, Trouble Debt Restructuring, Modifications [Line Items] | ' | ' |
Troubled Debt Restructurings - Modifications, Current | 172,876 | 195,021 |
Troubled Debt Restructurings - Modifications, 30-89 Days Delinquent | 11,264 | 15,107 |
Troubled Debt Restructurings - Modifications, 90-179 Days Delinquent | 5,923 | 6,173 |
Troubled Debt Restructurings - Modifications, 180+ Days Delinquent | 7,826 | 7,118 |
Total Recorded Investment in Troubled Debt Restructurings - Modifications | $197,889 | $223,419 |
Loans_Receivable_Net_Details_T3
Loans Receivable, Net (Details - Textuals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Loans Receivable Net (Details - Textuals) [Abstract] | ' | ' | ' |
Loans Pledged Federal Home Loan Bank | $7,100,000,000 | $8,200,000,000 | ' |
Loans Pledged Federal Reserve Bank | 600,000,000 | 800,000,000 | ' |
Home Equity Installment Loans, Percentage | 21.00% | ' | ' |
Home Equity Line of Credit, Percentage | 79.00% | ' | ' |
Home Equity Line Of Credit Draw Period, Minimum | 5 | ' | ' |
Home Equity Lines Of Credit Draw Period, Maximum | 10 | ' | ' |
Home Equity Line of Credit Require to Repay in Full, Percentage | 9.00% | ' | ' |
Home Equity Line of Credit Require to Repay in Full, Amount | 250,000,000 | ' | ' |
Allowance For Credit Losses, Qualitative Component | 52,000,000 | 44,000,000 | ' |
Third Party Mortgage Originators Repurchase Settlement, Count | 3 | ' | ' |
Repurchase Settlements | 12,500,000 | ' | 11,200,000 |
Loans In Which Servicers Failed To Report Bankruptcy | ' | ' | 90,000,000 |
Loans, After Write-Down, In Which Servicers Failed To Report Bankruptcy | ' | ' | 40,000,000 |
Increase to Net Charge-Off and Provision for Loan Losses on Loans in which Servicers Failed to Report Bankruptcy | ' | ' | 50,000,000 |
Increase to Net Charge-Off and Provision for Loan Losses on Loans in which Servicers Failed to Report Bankruptcy, Prior Periods, Percentage | ' | ' | 80.00% |
Bankruptcy Loans, Recorded Investment | 196,000,000 | 216,600,000 | ' |
Bankruptcy Loans, Performing, Recorded Investment | $106,200,000 | $119,200,000 | ' |
Accounting_for_Derivative_Inst1
Accounting for Derivative Instruments and Hedging Activities (Details - Fair Value of Derivatives) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Notional And Fair Value of Interest Rate Derivatives [Line Items] | ' | ' |
Notional amount of interest rate cash flow hedges | $3,305,000 | $4,530,000 |
Notional amount of interest rate fair value hedges | 1,461,350 | 514,180 |
Notional amount of interest rate contracts designated as hedging instruments | 4,766,350 | 5,044,180 |
Interest Rate Fair Value Hedge Asset At Fair Value | 59,836 | 1,343 |
Interest Rate Fair Value Hedge Liability At Fair Value | -11,167 | -18,385 |
Interest Rate Fair Value Hedge Derivative At Fair Value Net | 48,669 | -17,042 |
Interest Rate Cash Flow Hedge Asset At Fair Value | 20,119 | 13,391 |
Interest Rate Cash Flow Hedge Liability At Fair Value | -195,418 | -310,079 |
Interest Rate Cash Flow Hedge Derivative At Fair Value Net | -175,299 | -296,688 |
Derivative Assets | 79,955 | 14,734 |
Derivative liabilities | -206,585 | -328,464 |
Total Derivatives Designated As Hedging Instruments, Net | -126,630 | -313,730 |
Pay Fixed Rate Swaps [Member] | ' | ' |
Notional And Fair Value of Interest Rate Derivatives [Line Items] | ' | ' |
Notional amount of interest rate cash flow hedges | 2,480,000 | 2,205,000 |
Notional amount of interest rate fair value hedges | 1,442,100 | 514,180 |
Interest Rate Fair Value Hedge Asset At Fair Value | 59,836 | 1,343 |
Interest Rate Fair Value Hedge Liability At Fair Value | -10,572 | -18,385 |
Interest Rate Fair Value Hedge Derivative At Fair Value Net | 49,264 | -17,042 |
Interest Rate Cash Flow Hedge Asset At Fair Value | 12,147 | 0 |
Interest Rate Cash Flow Hedge Liability At Fair Value | -195,418 | -310,079 |
Interest Rate Cash Flow Hedge Derivative At Fair Value Net | -183,271 | -310,079 |
Purchased Options [Member] | ' | ' |
Notional And Fair Value of Interest Rate Derivatives [Line Items] | ' | ' |
Notional amount of interest rate cash flow hedges | 825,000 | 2,325,000 |
Interest Rate Cash Flow Hedge Asset At Fair Value | 7,972 | 13,391 |
Interest Rate Cash Flow Hedge Liability At Fair Value | 0 | 0 |
Interest Rate Cash Flow Hedge Derivative At Fair Value Net | 7,972 | 13,391 |
Purchased Forward-Starting Swaps [Member] | ' | ' |
Notional And Fair Value of Interest Rate Derivatives [Line Items] | ' | ' |
Notional amount of interest rate fair value hedges | 19,250 | ' |
Interest Rate Fair Value Hedge Asset At Fair Value | 0 | ' |
Interest Rate Fair Value Hedge Liability At Fair Value | -595 | ' |
Interest Rate Fair Value Hedge Derivative At Fair Value Net | ($595) | ' |
Accounting_for_Derivative_Inst2
Accounting for Derivative Instruments and Hedging Activities (Details - Cash Flow Hedge) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | |||||
Impact On Accumulated Other Comprehensive Gain Loss Net Of Tax And Consolidated Statement Of Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Gains (losses) on derivatives recognized in OCI (effective portion), net of tax | ($11,894,000) | [1] | ($21,905,000) | [1] | $56,575,000 | [1] | ($73,602,000) | [1] | ' | ' | ' | ' |
Losses reclassified from AOCI into earnings (effective portion), net of tax | -21,214,000 | -20,471,000 | -64,357,000 | -60,329,000 | ' | ' | ' | ' | ||||
Cash flow hedge ineffectiveness gains (losses) | -74,000 | 111,000 | 867,000 | -862,000 | ' | ' | ' | ' | ||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | -139,900,000 | ' | -139,900,000 | ' | ' | ' | ' | ' | ||||
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge | ' | ' | '9 years | ' | ' | ' | ' | ' | ||||
Accumulated other comprehensive loss balance (net of tax) related to: | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Discontinued cash flow hedges | -212,351,000 | ' | -212,351,000 | ' | ' | -247,983,000 | ' | ' | ||||
Active cash flow hedges | -119,058,000 | ' | -119,058,000 | ' | ' | -204,358,000 | ' | ' | ||||
Total cash flow hedges | -331,409,000 | -471,226,000 | -331,409,000 | -471,226,000 | -340,729,000 | -452,341,000 | -469,792,000 | -457,953,000 | ||||
Impact by Cash Flow Hedge Type on Accumulated Other Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Repurchase agreements | -424,217,000 | ' | -424,217,000 | ' | ' | -579,763,000 | ' | ' | ||||
FHLB advances | -108,941,000 | ' | -108,941,000 | ' | ' | -146,253,000 | ' | ' | ||||
Home equity lines of credit | 793,000 | ' | 793,000 | ' | ' | 7,854,000 | ' | ' | ||||
Other | 0 | ' | 0 | ' | ' | 116,000 | ' | ' | ||||
Total balance of cash flow hedges, before tax | -532,365,000 | ' | -532,365,000 | ' | ' | -718,046,000 | ' | ' | ||||
Tax benefit | 200,956,000 | ' | 200,956,000 | ' | ' | 265,705,000 | ' | ' | ||||
Total balance of cash flow hedges, net of tax | ($331,409,000) | ($471,226,000) | ($331,409,000) | ($471,226,000) | ($340,729,000) | ($452,341,000) | ($469,792,000) | ($457,953,000) | ||||
[1] | Amounts are net of benefit from income taxes of $7.8 million and provision for $26.8 million for the three and nine months ended September 30, 2013, respectively, compared to benefit from income taxes of $11.7 million and $42.7 million for the three and nine months ended September 30, 2012, respectively. |
Accounting_for_Derivative_Inst3
Accounting for Derivative Instruments and Hedging Activities (Details - Fair Value Hedge) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Effect of Fair Value Hedges on Results of Operations [Line Items] | ' | ' | ' | ' |
Hedging Instrument | ($4,098) | $2,001 | $69,053 | ($20,239) |
Hedged Item | 1,240 | -3,396 | -69,501 | 14,318 |
Hedge Ineffectiveness | -2,858 | -1,395 | -448 | -5,921 |
Agency debentures [Member] | ' | ' | ' | ' |
Effect of Fair Value Hedges on Results of Operations [Line Items] | ' | ' | ' | ' |
Hedging Instrument | 3,204 | -1,475 | 48,505 | -27,875 |
Hedged Item | -4,558 | 1,481 | -47,994 | 26,319 |
Hedge Ineffectiveness | -1,354 | 6 | 511 | -1,556 |
Agency mortgage-backed securities and CMOs [Member] | ' | ' | ' | ' |
Effect of Fair Value Hedges on Results of Operations [Line Items] | ' | ' | ' | ' |
Hedging Instrument | -7,302 | -2,260 | 20,548 | -7,303 |
Hedged Item | 5,798 | 2,141 | -21,507 | 6,745 |
Hedge Ineffectiveness | -1,504 | -119 | -959 | -558 |
Federal Home Loan Bank Advances [Member] | ' | ' | ' | ' |
Effect of Fair Value Hedges on Results of Operations [Line Items] | ' | ' | ' | ' |
Hedging Instrument | 0 | 5,736 | 0 | 14,939 |
Hedged Item | 0 | -7,018 | 0 | -18,746 |
Hedge Ineffectiveness | $0 | ($1,282) | $0 | ($3,807) |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Trading And Investing [Member] | Trading And Investing [Member] | Balance Sheet Management [Member] | Balance Sheet Management [Member] | |||||
Goodwill [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at period start | ' | ' | $1,934,232 | ' | $1,934,232 | $1,934,232 | ' | ' |
Write off of goodwill related to exit activities | ' | ' | ' | ' | ' | 0 | ' | ' |
Impairment of goodwill | 0 | 0 | 142,423 | 0 | 142,423 | ' | ' | ' |
Balance at period end | 1,791,809 | ' | 1,791,809 | ' | 1,791,809 | 1,934,232 | ' | ' |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill Accumulated Impairment Loss | ' | ' | ' | ' | $142,423 | $0 | $101,200 | $101,200 |
Deposits_Details
Deposits (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Deposits, Weighted Average Rates [Abstract] | ' | ' |
Sweep deposits, weighted-average rate | 0.06% | 0.05% |
Complete savings deposits, weighted-average rate | 0.01% | 0.01% |
Checking deposits, weighted-average rate | 0.03% | 0.03% |
Other money market and savings deposits, weighted-average rate | 0.01% | 0.01% |
Time deposits, weighted-average rate | 0.70% | 1.75% |
Total deposits, weighted-average rate | 0.05% | 0.05% |
Deposits By Type [Abstract] | ' | ' |
Sweep deposits | $19,453,183,000 | $21,253,611,000 |
Complete savings deposits | 4,407,250,000 | 4,981,615,000 |
Checking deposits | 1,022,788,000 | 1,055,422,000 |
Other money market and savings deposits | 918,631,000 | 995,188,000 |
Time deposits | 67,945,000 | 106,716,000 |
Total deposits | 25,869,797,000 | 28,392,552,000 |
Deposits Textuals [Abstract] | ' | ' |
Noninterest-bearing Deposit Liabilities, Domestic | $120,500,000 | $113,100,000 |
Securities_Sold_Under_Agreemen2
Securities Sold Under Agreements to Repurchase and FHLB Advances and Other Borrowings (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Type Of Borrowings [Line Items] | ' | ' |
Repurchase Agreements | $4,449,665,000 | $4,454,661,000 |
FHLB Advances | 845,971,000 | 831,749,000 |
Other Borrowings | 439,040,000 | 429,167,000 |
Total | 5,734,676,000 | 5,715,577,000 |
Borrowings Weighted Average Interest Rate | 0.74% | 0.83% |
Securities Sold Under Agreements To Repurchase Maximum Monthend Outstanding Amount | 4,600,000,000 | 5,000,000,000 |
Subtotal Of Total Borrowings [Member] | ' | ' |
Type Of Borrowings [Line Items] | ' | ' |
Repurchase Agreements | 4,449,665,000 | ' |
FHLB Advances | 920,000,000 | ' |
Other Borrowings | 439,040,000 | ' |
Total | 5,808,705,000 | ' |
Borrowings Weighted Average Interest Rate | 0.74% | ' |
Fair Value Hedge Adjustments [Member] | ' | ' |
Type Of Borrowings [Line Items] | ' | ' |
Repurchase Agreements | 0 | ' |
FHLB Advances | 31,034,000 | ' |
Other Borrowings | 0 | ' |
Total | 31,034,000 | ' |
Deferred Costs [Member] | ' | ' |
Type Of Borrowings [Line Items] | ' | ' |
Repurchase Agreements | 0 | ' |
FHLB Advances | -105,063,000 | ' |
Other Borrowings | 0 | ' |
Total | -105,063,000 | ' |
Maturity Within One Year Of Balance Sheet Date [Member] | ' | ' |
Type Of Borrowings [Line Items] | ' | ' |
Repurchase Agreements | 3,499,665,000 | ' |
FHLB Advances | 170,000,000 | ' |
Other Borrowings | 11,234,000 | ' |
Total | 3,680,899,000 | ' |
Borrowings Weighted Average Interest Rate | 0.35% | ' |
Maturity From One To Two Years Of Balance Sheet Date [Member] | ' | ' |
Type Of Borrowings [Line Items] | ' | ' |
Repurchase Agreements | 200,000,000 | ' |
FHLB Advances | 100,000,000 | ' |
Other Borrowings | 0 | ' |
Total | 300,000,000 | ' |
Borrowings Weighted Average Interest Rate | 1.22% | ' |
Maturity From Two To Three Years Of Balance Sheet Date [Member] | ' | ' |
Type Of Borrowings [Line Items] | ' | ' |
Repurchase Agreements | 250,000,000 | ' |
FHLB Advances | 250,000,000 | ' |
Other Borrowings | 0 | ' |
Total | 500,000,000 | ' |
Borrowings Weighted Average Interest Rate | 0.46% | ' |
Maturity From Three To Four Years Of Balance Sheet Date [Member] | ' | ' |
Type Of Borrowings [Line Items] | ' | ' |
Repurchase Agreements | 500,000,000 | ' |
FHLB Advances | 400,000,000 | ' |
Other Borrowings | 0 | ' |
Total | 900,000,000 | ' |
Borrowings Weighted Average Interest Rate | 1.26% | ' |
Maturity Due After Five Years From Balance Sheet Date [Member] | ' | ' |
Type Of Borrowings [Line Items] | ' | ' |
Repurchase Agreements | 0 | ' |
FHLB Advances | 0 | ' |
Other Borrowings | 427,806,000 | ' |
Total | $427,806,000 | ' |
Borrowings Weighted Average Interest Rate | 2.93% | ' |
Corporate_Debt_Details
Corporate Debt (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Face value | $1,782,656 | $1,782,657 |
Discount | -14,907 | -17,675 |
Net | 1,767,749 | 1,764,982 |
Interest Bearing Total [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Face value | 1,740,000 | 1,740,000 |
Discount | -14,907 | -17,675 |
Net | 1,725,093 | 1,722,325 |
Senior Notes Interest Bearing Six And Three Fourths Percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Face value | 435,000 | 435,000 |
Discount | -4,479 | -5,738 |
Net | 430,521 | 429,262 |
Debt Instrument Interest Rate Stated Percentage [Abstract] | ' | ' |
Debt instrument interest rate stated percentage | 6.75% | ' |
Debt instrument maturity year | '2016 | ' |
Senior Notes Interest Bearing Six Percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Face value | 505,000 | 505,000 |
Discount | -3,893 | -4,601 |
Net | 501,107 | 500,399 |
Debt Instrument Interest Rate Stated Percentage [Abstract] | ' | ' |
Debt instrument interest rate stated percentage | 6.00% | ' |
Debt instrument maturity year | '2017 | ' |
Senior Notes Interest Bearing Six And Three Eighths Percent [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Face value | 800,000 | 800,000 |
Discount | -6,535 | -7,336 |
Net | 793,465 | 792,664 |
Debt Instrument Interest Rate Stated Percentage [Abstract] | ' | ' |
Debt instrument interest rate stated percentage | 6.38% | ' |
Debt instrument maturity year | '2019 | ' |
Noninterest Bearing Convertible Debentures [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Face value | 42,656 | 42,657 |
Discount | 0 | 0 |
Net | $42,656 | $42,657 |
Debt Instrument Interest Rate Stated Percentage [Abstract] | ' | ' |
Debt instrument interest rate stated percentage | 0.00% | ' |
Debt instrument maturity year | '2019 | ' |
Shareholders_Equity_Details
Shareholders Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Abstract] | ' | ' | ' | ' | ||||
Accumulated other comprehensive loss, available for sale securities adjustment, net of tax, beginning balance | ($103,939) | $126,554 | $136,972 | $68,330 | ||||
Change in other comprehensive income availble for sale before reclassifications | 18,824 | 87,434 | -201,104 | 186,257 | ||||
Other comprehensive loss, reclassification adjustment for sale of securities included in net income, net of tax | -9,677 | [1] | -50,349 | [1] | -30,660 | [1] | -90,948 | [1] |
Net change from available-for-sale securities | 9,147 | 37,085 | -231,764 | 95,309 | ||||
Accumulated other comprehensive loss, available for sale securities adjustment, net of tax, ending balance | -94,792 | 163,639 | -94,792 | 163,639 | ||||
Accumulated other comprehensive loss, cash flow hedging instruments, net of tax, beginning balance | -340,729 | -469,792 | -452,341 | -457,953 | ||||
Change in other comprehensive income cash flow hedges before reclassifications | -11,894 | [2] | -21,905 | [2] | 56,575 | [2] | -73,602 | [2] |
Other comprehensive loss, reclassification adjustment for cash flow hedges included in net income, net of tax | 21,214 | [3] | 20,471 | [3] | 64,357 | [3] | 60,329 | [3] |
Net change from cash flow hedging instruments | 9,320 | -1,434 | 120,932 | -13,273 | ||||
Accumulated other comprehensive loss, cash flow hedging instruments, net of tax, ending balance | -331,409 | -471,226 | -331,409 | -471,226 | ||||
Accumulated other comprehensive loss, foreign currency translation, net of tax, beginning balance | 5,001 | 2,539 | 5,441 | 2,994 | ||||
Foreign currency translation gains (losses) before reclassifications, net | 582 | 1,645 | 142 | 1,190 | ||||
Foreign currency translation gains (losses), net | 582 | 1,645 | 142 | 1,190 | ||||
Accumulated other comprehensive loss, foreign currency translation, net of tax, ending balance | 5,583 | 4,184 | 5,583 | 4,184 | ||||
Accumulated other comprehensive loss, beginning balance | -439,667 | -340,699 | -309,928 | -386,629 | ||||
Other comprehensive income (loss) before reclassifications total, net | 7,512 | 67,174 | -144,387 | 113,845 | ||||
Amounts reclassified from accumulated other comprehensive loss total, net | 11,537 | -29,878 | 33,697 | -30,619 | ||||
Other comprehensive income | 19,049 | 37,296 | -110,690 | 83,226 | ||||
Accumulated other comprehensive loss, ending balance | -420,618 | -303,403 | -420,618 | -303,403 | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Abstract] | ' | ' | ' | ' | ||||
Gains on loans and securities net other comprehensive income | 15,679 | ' | 49,298 | ' | ||||
Income tax expense benefit available for sale | -6,002 | ' | -18,638 | ' | ||||
Other comprehensive loss, reclassification adjustment for sale of securities included in net income, net of tax | -9,677 | [1] | -50,349 | [1] | -30,660 | [1] | -90,948 | [1] |
Other comprehensive income operating interest income cash flow hedge | 2,353 | ' | 7,058 | ' | ||||
Other comprehensive income operating interest expense cash flow hedge | -37,413 | ' | -109,360 | ' | ||||
Other comprehensive income loss reclassification adjustment on derivatives included in net income before tax cash flow hedge | -35,060 | ' | -102,302 | ' | ||||
Income tax expense benefit cash flow hedge | 13,846 | ' | 37,945 | ' | ||||
Other comprehensive loss, reclassification adjustment for cash flow hedges included in net income, net of tax | 21,214 | [3] | 20,471 | [3] | 64,357 | [3] | 60,329 | [3] |
Shareholders Equity Activity [Line Items] | ' | ' | ' | ' | ||||
Beginning balance, | ' | ' | 4,904,470 | 4,927,950 | ||||
Net Income (Loss) | 47,428 | -28,625 | 28,149 | 73,476 | ||||
Conversion of convertible debentures | ' | ' | 1 | 100 | ||||
Net change from available-for-sale securities | 9,147 | 37,085 | -231,764 | 95,309 | ||||
Net change from cash flow hedging instruments | 9,320 | -1,434 | 120,932 | -13,273 | ||||
Other | ' | ' | 7,787 | ' | ||||
Ending balance, | 4,829,574 | 5,093,854 | 4,829,574 | 5,093,854 | ||||
Common Stock and Additional Paid in Capital [Member] | ' | ' | ' | ' | ||||
Shareholders Equity Activity [Line Items] | ' | ' | ' | ' | ||||
Beginning balance, | ' | ' | 7,322,118 | ' | ||||
Other | ' | ' | 7,645 | ' | ||||
Ending balance, | 7,329,763 | ' | 7,329,763 | ' | ||||
Accumulated Deficit and Other Comprehensive Loss [Member] | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Abstract] | ' | ' | ' | ' | ||||
Net change from available-for-sale securities | ' | ' | -231,764 | ' | ||||
Net change from cash flow hedging instruments | ' | ' | 120,932 | ' | ||||
Shareholders Equity Activity [Line Items] | ' | ' | ' | ' | ||||
Beginning balance, | ' | ' | -2,417,648 | ' | ||||
Net Income (Loss) | ' | ' | 28,149 | ' | ||||
Net change from available-for-sale securities | ' | ' | -231,764 | ' | ||||
Net change from cash flow hedging instruments | ' | ' | 120,932 | ' | ||||
Other | ' | ' | 142 | ' | ||||
Ending balance, | ($2,500,189) | ' | ($2,500,189) | ' | ||||
[1] | Amounts are net of provision for income taxes of $6.0 million and $18.6 million for the three and nine months ended September 30, 2013, respectively, compared to provision for income taxes of $29.7 million and $54.1 million for the three and nine months ended September 30, 2012, respectively. | |||||||
[2] | Amounts are net of benefit from income taxes of $7.8 million and provision for $26.8 million for the three and nine months ended September 30, 2013, respectively, compared to benefit from income taxes of $11.7 million and $42.7 million for the three and nine months ended September 30, 2012, respectively. | |||||||
[3] | Amounts are net of benefit from income taxes of $13.8 million and $37.9 million for the three and nine months ended September 30, 2013, respectively, compared to benefit from income taxes of $12.3 million and $36.5 million for the three and nine months ended September 30, 2012, respectively. |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic: | ' | ' | ' | ' |
Net Income (Loss) | $47,428 | ($28,625) | $28,149 | $73,476 |
Basic weighted-average shares outstanding | 287,111,000 | 285,850,000 | 286,882,000 | 285,658,000 |
Basic earnings per share | $0.17 | ($0.10) | $0.10 | $0.26 |
Diluted: | ' | ' | ' | ' |
Net Income (Loss) | $47,428 | ($28,625) | $28,149 | $73,476 |
Basic weighted-average shares outstanding | 287,111,000 | 285,850,000 | 286,882,000 | 285,658,000 |
Effect of dilutive securities: | ' | ' | ' | ' |
Weighted-average convertible debentures | 4,125,000 | 0 | 4,125,000 | 4,154,000 |
Weighted-average options and restricted stock issued to employees | 1,394,000 | 0 | 1,242,000 | 583,000 |
Diluted weighted-average shares outstanding | 292,630,000 | 285,850,000 | 292,249,000 | 290,395,000 |
Diluted earnings per share | $0.16 | ($0.10) | $0.10 | $0.25 |
Antidilutive Shares Excluded Due To Net Loss [Abstract] | ' | ' | ' | ' |
Convertible debentures | ' | 4,100,000 | ' | ' |
Stock options and restricted stock awards units | ' | 400,000 | ' | ' |
Other stock options and restricted stock awards and units | 1,200,000 | 2,900,000 | 1,800,000 | 2,600,000 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount | 1,200,000 | 7,400,000 | 1,800,000 | 2,600,000 |
Regulatory_Requirements_Detail
Regulatory Requirements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Minimum Net Capital Required [Abstract] | ' | ' |
Minimum percentage of net capital required for broker dealer subsidiary aggregate indebtedness | 6.67% | ' |
Alternative Net Capital Requirement | $250,000 | ' |
Minimum percentage of aggregate debit balances | 2.00% | ' |
Broker Dealer Subsidiaries Net Capital [Line Items] | ' | ' |
Required Net Capital | 140,531,000 | 129,828,000 |
Net capital | 969,089,000 | 784,954,000 |
Excess net capital | 828,558,000 | 655,126,000 |
E TRADE Bank [Member] | ' | ' |
Total capital | ' | ' |
Capital | 4,242,628,000 | 4,009,540,000 |
Capital required to be well capitalized | 1,807,504,000 | 1,945,669,000 |
Excess capital to be well capitalized | 2,435,124,000 | 2,063,871,000 |
Total capital to risk weighted assets | 23.47% | 20.61% |
Total capital required to be well capitalized to risk weighted assets | 10.00% | 10.00% |
Tier I capital | ' | ' |
Tier 1 risk based capital | 4,013,123,000 | 3,762,242,000 |
Tier 1 risk based capital required to be well capitalized | 1,084,502,000 | 1,167,401,000 |
Excess Tier 1 risk based capital to well capitalized | 2,928,621,000 | 2,594,841,000 |
Tier 1 capital to risk weighted assets | 22.20% | 19.34% |
Tier 1 capital required to be well capitalized to risk weighted assets | 6.00% | 6.00% |
Tier 1 leverage | ' | ' |
Tier 1 leverage capital | 4,013,123,000 | 3,762,242,000 |
Tier 1 leverage capital required to be well capitalized | 2,116,802,000 | 2,167,136,000 |
Excess Tier 1 leverage capital to well capitalized | 1,896,321,000 | 1,595,106,000 |
Tier 1 leverage capital to adjusted assets | 9.48% | 8.68% |
Tier 1 leverage capital required to be well capitalized to adjusted assets | 5.00% | 5.00% |
E TRADE Clearing [Member] | ' | ' |
Broker Dealer Subsidiaries Net Capital [Line Items] | ' | ' |
Required Net Capital | 137,061,000 | 123,656,000 |
Net capital | 703,752,000 | 658,968,000 |
Excess net capital | 566,691,000 | 535,312,000 |
E TRADE Securities [Member] | ' | ' |
Broker Dealer Subsidiaries Net Capital [Line Items] | ' | ' |
Required Net Capital | 250,000 | 250,000 |
Net capital | 215,109,000 | 79,318,000 |
Excess net capital | 214,859,000 | 79,068,000 |
G1 Execution Services [Member] | ' | ' |
Broker Dealer Subsidiaries Net Capital [Line Items] | ' | ' |
Required Net Capital | 1,000,000 | 1,283,000 |
Net capital | 21,140,000 | 10,598,000 |
Excess net capital | 20,140,000 | 9,315,000 |
Other Broker Dealers [Member] | ' | ' |
Broker Dealer Subsidiaries Net Capital [Line Items] | ' | ' |
Required Net Capital | 2,220,000 | 4,639,000 |
Net capital | 29,088,000 | 36,070,000 |
Excess net capital | $26,868,000 | $31,431,000 |
Commitments_Contingencies_and_1
Commitments, Contingencies and Other Regulatory Requirements (Details) (USD $) | Sep. 30, 2013 | Apr. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2003 | Oct. 31, 2013 |
Unfunded Commitments to Extend Credit [Member] | Ajaxo Lawsuit [Member] | Rubery Clark Lawsuit [Member] | |||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Loss Contingency, Judgment Entered, Value | ' | ' | ' | $1,300,000 | ' |
Loss Contingency, Attorneys Fees and Expenses Paid, Value | ' | ' | ' | ' | 1,000,000 |
Supply Commitment [Line Items] | ' | ' | ' | ' | ' |
Significant Supply Commitment Remaining Minimum Amount Committed | ' | ' | 400,000,000 | ' | ' |
Alleged Minimum Amount Company Would Exercise Options | ' | 0.01 | ' | ' | ' |
Commitments To Fund Partnerships | 4,400,000 | ' | ' | ' | ' |
Time Deposit Maturities, Year One | 42,600,000 | ' | ' | ' | ' |
Trust Preferred Securities Contractual Time Period | '30 | ' | ' | ' | ' |
Liquidation Amount Per Trust Preferred Security | 1,000 | ' | ' | ' | ' |
Estimated Maximum Potential Liability Trust Preferred Securities | $436,500,000 | ' | ' | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net operating interest income | $240,847 | $260,877 | $724,717 | $824,834 | ' |
Total non-interest income | 175,955 | 229,158 | 551,881 | 607,006 | ' |
Total net revenue | 416,802 | 490,035 | 1,276,598 | 1,431,840 | ' |
Provision for loan losses | 37,399 | 141,019 | 126,198 | 280,227 | ' |
Total operating expense | 270,744 | 289,033 | 980,206 | 876,727 | ' |
Income (loss) before other income (expense) and income taxes | 108,659 | 59,983 | 170,194 | 274,886 | ' |
Total other income (expense) | -28,729 | -96,286 | -80,678 | -184,655 | ' |
Income (loss) before income taxes | 79,930 | -36,303 | 89,516 | 90,231 | ' |
Income tax expense (benefit) | 32,502 | -7,678 | 61,367 | 16,755 | ' |
Net income | 47,428 | -28,625 | 28,149 | 73,476 | ' |
Segment Reporting Asset Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Total assets | 45,547,479 | ' | 45,547,479 | ' | 47,386,739 |
Trading And Investing [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net operating interest income | 133,378 | 156,805 | 400,729 | 492,456 | ' |
Total non-interest income | 162,735 | 150,662 | 500,656 | 472,771 | ' |
Total net revenue | 296,113 | 307,467 | 901,385 | 965,227 | ' |
Provision for loan losses | 0 | 0 | 0 | 0 | ' |
Total operating expense | 170,344 | 180,463 | 687,361 | 580,113 | ' |
Income (loss) before other income (expense) and income taxes | 125,769 | 127,004 | 214,024 | 385,114 | ' |
Total other income (expense) | 0 | 0 | 0 | 0 | ' |
Income (loss) before income taxes | 125,769 | 127,004 | 214,024 | 385,114 | ' |
Segment Reporting Asset Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Total assets | 10,087,260 | ' | 10,087,260 | ' | 9,505,280 |
Balance Sheet Management [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net operating interest income | 107,469 | 104,072 | 323,988 | 332,374 | ' |
Total non-interest income | 13,220 | 78,502 | 51,226 | 134,254 | ' |
Total net revenue | 120,689 | 182,574 | 375,214 | 466,628 | ' |
Provision for loan losses | 37,399 | 141,019 | 126,198 | 280,227 | ' |
Total operating expense | 43,489 | 53,204 | 134,990 | 168,407 | ' |
Income (loss) before other income (expense) and income taxes | 39,801 | -11,649 | 114,026 | 17,994 | ' |
Total other income (expense) | 0 | 0 | 0 | 0 | ' |
Income (loss) before income taxes | 39,801 | -11,649 | 114,026 | 17,994 | ' |
Segment Reporting Asset Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Total assets | 34,868,901 | ' | 34,868,901 | ' | 37,305,600 |
Corporate Other [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Net operating interest income | 0 | 0 | 0 | 4 | ' |
Total non-interest income | 0 | -6 | -1 | -19 | ' |
Total net revenue | 0 | -6 | -1 | -15 | ' |
Provision for loan losses | 0 | 0 | 0 | 0 | ' |
Total operating expense | 56,911 | 55,366 | 157,855 | 128,207 | ' |
Income (loss) before other income (expense) and income taxes | -56,911 | -55,372 | -157,856 | -128,222 | ' |
Total other income (expense) | -28,729 | -96,286 | -80,678 | -184,655 | ' |
Income (loss) before income taxes | -85,640 | -151,658 | -238,534 | -312,877 | ' |
Segment Reporting Asset Reconciling Item [Line Items] | ' | ' | ' | ' | ' |
Total assets | $591,318 | ' | $591,318 | ' | $575,859 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
G1 Execution Services [Member] | ' |
Subsequent Event [Line Items] | ' |
Proceeds From Divestiture Of Businesses | $75 |
E TRADE Securities [Member] | ' |
Subsequent Event [Line Items] | ' |
Customer Equity Order Flow to G1X | 70.00% |