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Loans Receivable | 6 Months Ended
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Mar. 31, 2016
Receivables [Abstract] |
Loans Receivable | Loans Receivable The following table is a summary of loans receivable (including loans in process, net of charge offs.)
| March 31, 2016 |  | September 30, 2015
| (In thousands) |  | (In thousands)
Non-Acquired loans |  |  |  |  |
Single-family residential | $ | 5,618,954 |  | 54.5 | % |  | $ | 5,651,845 |  | 57.6 | %
Construction | 785,846 |  | 7.6 |  |  | 200,509 |  | 2.0 |
Construction - custom | 398,797 |  | 3.9 |  |  | 396,307 |  | 4.0 |
Land - acquisition & development | 101,605 |  | 1.0 |  |  | 94,208 |  | 1.0 |
Land - consumer lot loans | 100,856 |  | 1.0 |  |  | 103,989 |  | 1.1 |
Multi-family | 1,073,222 |  | 10.4 |  |  | 1,125,722 |  | 11.6 |
Commercial real estate | 833,570 |  | 8.1 |  |  | 986,270 |  | 10.0 |
Commercial & industrial | 805,272 |  | 7.8 |  |  | 612,836 |  | 6.2 |
HELOC | 130,459 |  | 1.3 |  |  | 127,646 |  | 1.3 |
Consumer | 164,672 |  | 1.6 |  |  | 194,655 |  | 2.0 |
Total non-acquired loans | 10,013,253 |  | 97.2 | % |  | 9,493,987 |  | 96.8 | %
Acquired loans | 152,572 |  | 1.5 |  |  | 166,293 |  | 1.6 |
Credit impaired acquired loans | 106,637 |  | 1.0 |  |  | 87,081 |  | 0.9 |
Covered loans | 34,211 |  | 0.3 |  |  | 75,909 |  | 0.7 |
Total gross loans | 10,306,673 |  | 100.0 | % |  | 9,823,270 |  | 100.0 | %
Less: |  |  |  |  |
Allowance for loan losses | 109,919 |  |  |  | 106,829 |  |
Loans in process | 591,667 |  |  |  | 476,796 |  |
Discount on acquired loans | 21,120 |  |  |  | 30,095 |  |
Deferred net origination fees | 38,645 |  |  |  | 38,916 |  |
Total loan contra accounts | 761,351 |  |  |  | 652,636 |  |
Net Loans | $ | 9,545,322 |  |  |  | $ | 9,170,634 |  |
The following table sets forth information regarding non-accrual loans.
| March 31, 2016 |  | September 30, 2015
| (In thousands)
Non-accrual loans: |  |  |  |  |  |  |
Single-family residential | $ | 42,395 |  |  | 77.7 | % |  | $ | 59,074 |  |  | 87.1 | %
Construction | — |  |  | — |  |  | 754 |  |  | 1.1 |
Construction - custom | 67 |  |  | 0.1 |  |  | 732 |  |  | 1.1 |
Land - acquisition & development | 477 |  |  | 0.9 |  |  | — |  |  | — |
Land - consumer lot loans | 940 |  |  | 1.7 |  |  | 1,273 |  |  | 1.9 |
Multi-family | 1,520 |  |  | 2.8 |  |  | 2,558 |  |  | 3.8 |
Commercial real estate | 7,701 |  |  | 14.1 |  |  | 2,176 |  |  | 3.2 |
Commercial & industrial | 596 |  |  | 1.1 |  |  | — |  |  | — |
HELOC | 554 |  |  | 1.0 |  |  | 563 |  |  | 0.8 |
Consumer | 309 |  |  | 0.6 |  |  | 680 |  |  | 1.0 |
Total non-accrual loans | $ | 54,559 |  |  | 100 | % |  | $ | 67,810 |  |  | 100 | %
The Company recognized interest income on nonaccrual loans of approximately $3,219,000 in the six months ended March 31, 2016. Had these loans performed according to their original contract terms, the Company would have recognized interest income of approximately $1,315,000 for the six months ended March 31, 2016. The recognized interest income includes more than six months of interest for some of the loans that were brought current. The following tables provide details regarding delinquent loans.
March 31, 2016 | Amount of Loans |  | Days Delinquent Based on $ Amount of Loans |  | % based on $
Type of Loan | Net of LIP & Chg.-Offs |  | Current |  | 30 |  | 60 |  | 90 |  | Total |
| (In thousands) |  |
Non-acquired loans |  |  |  |  |  |  |  |  |  |  |  |  |
Single-Family Residential | $ | 5,624,134 |  |  | $ | 5,558,731 |  |  | $ | 18,000 |  |  | $ | 7,785 |  |  | $ | 39,618 |  |  | $ | 65,403 |  |  | 1.16 | %
Construction | 396,322 |  |  | 396,181 |  |  | — |  |  | — |  |  | 141 |  |  | 141 |  |  | 0.04 |
Construction - Custom | 212,067 |  |  | 209,153 |  |  | 1,047 |  |  | 1,800 |  |  | 67 |  |  | 2,914 |  |  | 1.37 |
Land - Acquisition & Development | 92,467 |  |  | 90,541 |  |  | 1,445 |  |  | — |  |  | 481 |  |  | 1,926 |  |  | 2.08 |
Land - Consumer Lot Loans | 101,372 |  |  | 99,379 |  |  | 563 |  |  | 490 |  |  | 940 |  |  | 1,993 |  |  | 1.97 |
Multi-Family | 1,077,248 |  |  | 1,075,662 |  |  | 970 |  |  | — |  |  | 616 |  |  | 1,586 |  |  | 0.15 |
Commercial Real Estate | 889,342 |  |  | 881,896 |  |  | 1,766 |  |  | 53 |  |  | 5,627 |  |  | 7,446 |  |  | 0.84 |
Commercial & Industrial | 810,452 |  |  | 808,825 |  |  | 862 |  |  | — |  |  | 765 |  |  | 1,627 |  |  | 0.20 |
HELOC | 130,446 |  |  | 129,456 |  |  | 378 |  |  | 63 |  |  | 549 |  |  | 990 |  |  | 0.76 |
Consumer | 164,942 |  |  | 163,620 |  |  | 757 |  |  | 207 |  |  | 358 |  |  | 1,322 |  |  | 0.80 |
| 9,498,792 |  |  | 9,413,444 |  |  | 25,788 |  |  | 10,398 |  |  | 49,162 |  |  | 85,348 |  |  | 0.90 |
Acquired loans | 131,079 |  |  | 130,030 |  |  | 376 |  |  | 2 |  |  | 671 |  |  | 1,049 |  |  | 0.80 |
Credit impaired acquired loans | 50,924 |  |  | 50,604 |  |  | — |  |  | 44 |  |  | 276 |  |  | 320 |  |  | 0.63 |
Covered loans | 34,211 |  |  | 33,575 |  |  | 38 |  |  | 2 |  |  | 596 |  |  | 636 |  |  | 1.86 |
Total Loans | $ | 9,715,006 |  |  | $ | 9,627,653 |  |  | $ | 26,202 |  |  | $ | 10,446 |  |  | $ | 50,705 |  |  | $ | 87,353 |  |  | 0.90 | %
Delinquency % |  |  | 99.10% |  | 0.27% |  | 0.11% |  | 0.52% |  | 0.90% |  |
September 30, 2015 | Amount of Loans |  | Days Delinquent Based on $ Amount of Loans |  | % based on $
Type of Loan | Net of LIP & Chg.-Offs |  | Current |  | 30 |  | 60 |  | 90 |  | Total |
| (In thousands) |  |
Non-acquired loans |  |  |  |  |  |  |  |  |  |  |  |  |
Single-Family Residential | $ | 5,655,928 |  |  | $ | 5,590,673 |  |  | $ | 17,305 |  |  | $ | 7,757 |  |  | $ | 40,193 |  |  | $ | 65,255 |  |  | 1.15 | %
Construction | 130,121 |  |  | 130,121 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction - Custom | 205,692 |  |  | 204,168 |  |  | 791 |  |  | 270 |  |  | 463 |  |  | 1,524 |  |  | 0.74 |
Land - Acquisition & Development | 75,661 |  |  | 74,737 |  |  | 406 |  |  | — |  |  | 518 |  |  | 924 |  |  | 1.22 |
Land - Consumer Lot Loans | 104,494 |  |  | 102,045 |  |  | 689 |  |  | 399 |  |  | 1,361 |  |  | 2,449 |  |  | 2.34 |
Multi-Family | 1,068,038 |  |  | 1,065,667 |  |  | 259 |  |  | 454 |  |  | 1,658 |  |  | 2,371 |  |  | 0.22 |
Commercial Real Estate | 893,072 |  |  | 892,180 |  |  | 131 |  |  | — |  |  | 761 |  |  | 892 |  |  | 0.10 |
Commercial & Industrial | 617,545 |  |  | 616,602 |  |  | 93 |  |  | 27 |  |  | 823 |  |  | 943 |  |  | 0.15 |
HELOC | 127,648 |  |  | 127,196 |  |  | 174 |  |  | 27 |  |  | 251 |  |  | 452 |  |  | 0.35 |
Consumer | 194,977 |  |  | 194,259 |  |  | 493 |  |  | 170 |  |  | 55 |  |  | 718 |  |  | 0.37 |
| 9,073,176 |  |  | 8,997,648 |  |  | 20,341 |  |  | 9,104 |  |  | 46,083 |  |  | 75,528 |  |  | 0.83 |
Acquired loans | 57,682 |  |  | 56,559 |  |  | 356 |  |  | — |  |  | 767 |  |  | 1,123 |  |  | 1.95 |
Credit impaired acquired loans | 139,726 |  |  | 138,940 |  |  | 243 |  |  | 4 |  |  | 539 |  |  | 786 |  |  | 0.56 |
Covered loans | 75,890 |  |  | 70,729 |  |  | 272 |  |  | 90 |  |  | 4,799 |  |  | 5,161 |  |  | 6.80 |
Total Loans | $ | 9,346,474 |  |  | $ | 9,263,876 |  |  | $ | 21,212 |  |  | $ | 9,198 |  |  | $ | 52,188 |  |  | $ | 82,598 |  |  | 0.88 | %
Delinquency % |  |  | 99.12% |  | 0.23% |  | 0.10% |  | 0.56% |  | 0.88% |  |
The percentage of total delinquent loans increased from 0.88% as of September 30, 2015 to 0.90% as of March 31, 2016 and there are no loans greater than 90 days delinquent and still accruing interest as of either date. The following tables provide information related to loans that were restructured in a troubled debt restructuring ("TDR") during the periods presented:
| Three Months Ended March 31,
| 2016 |  | 2015
|  |  | Pre-Modification |  | Post-Modification |  |  |  | Pre-Modification |  | Post-Modification
|  |  | Outstanding |  | Outstanding |  |  |  | Outstanding |  | Outstanding
| Number of |  | Recorded |  | Recorded |  | Number of |  | Recorded |  | Recorded
| Contracts |  | Investment |  | Investment |  | Contracts |  | Investment |  | Investment
|  |  | (In thousands) |  |  |  | (In thousands)
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |  |  |
Single-family residential | 7 |  |  | $ | 1,101 |  |  | $ | 1,101 |  |  | 14 |  |  | $ | 2,664 |  |  | $ | 2,664 |
Land - consumer lot loans | — |  |  | — |  |  | — |  |  | 4 |  |  | 720 |  |  | 720 |
Commercial real estate |  |  |  |  |  |  |  |  |  | 3 |  |  | 3,175 |  |  | 3,175 |
| 7 |  |  | $ | 1,101 |  |  | $ | 1,101 |  |  | 21 |  |  | $ | 6,559 |  |  | $ | 6,559 |
| Six Months Ended March 31,
| 2016 |  | 2015
|  |  | Pre-Modification |  | Post-Modification |  |  |  | Pre-Modification |  | Post-Modification
|  |  | Outstanding |  | Outstanding |  |  |  | Outstanding |  | Outstanding
| Number of |  | Recorded |  | Recorded |  | Number of |  | Recorded |  | Recorded
| Contracts |  | Investment |  | Investment |  | Contracts |  | Investment |  | Investment
|  |  | (In thousands) |  |  |  | (In thousands)
Troubled Debt Restructurings: |  |  |  |  |  |  |  |  |  |  |
Single-family residential | 10 |  |  | $ | 1,830 |  |  | $ | 1,830 |  |  | 49 |  |  | $ | 12,264 |  |  | $ | 12,264 |
Construction | — |  |  | — |  |  | — |  |  | 2 |  |  | 718 |  |  | 718 |
Land - consumer lot loans | — |  |  | — |  |  | — |  |  | 6 |  |  | 1,252 |  |  | 1,252 |
Commercial real estate | 5 |  |  | 965 |  |  | 965 |  |  | 3 |  |  | 3,175 |  |  | 3,175 |
Consumer | — |  |  | — |  |  | — |  |  | 1 |  |  | 85 |  |  | 85 |
| 15 |  |  | $ | 2,795 |  |  | $ | 2,795 |  |  | 61 |  |  | $ | 17,494 |  |  | $ | 17,494 |
The following tables provide information on payment defaults occurring during the periods presented where the loan had been modified in a TDR within 12 months of the payment default.
| Three Months Ended March 31,
| 2016 |  | 2015
| Number of |  | Recorded |  | Number of |  | Recorded
| Contracts |  | Investment |  | Contracts |  | Investment
| (In thousands) |  | (In thousands)
TDRs That Subsequently Defaulted: |  |  |  |  |  |  |
Single-family residential | 6 |  |  | $ | 871 |  |  | 2 |  |  | $ | 304 |
Land - consumer lot loans | 1 |  |  | 146 |  |  | 2 |  |  | 301 |
Commercial real estate | 1 |  |  | 152 |  |  | — |  |  | — |
| 8 |  |  | $ | 1,169 |  |  | 4 |  |  | $ | 605 |
| Six Months Ended March 31,
| 2016 |  | 2015
| Number of |  | Recorded |  | Number of |  | Recorded
| Contracts |  | Investment |  | Contracts |  | Investment
| (In thousands) |  | (In thousands)
TDRs That Subsequently Defaulted: |  |  |  |  |  |  |
Single-family residential | 8 |  |  | $ | 1,095 |  |  | 7 |  |  | $ | 1,237 |
Land - consumer lot loans | 1 |  |  | 146 |  |  | 3 |  |  | 389 |
Commercial real estate | 1 |  |  | 152 |  |  | — |  |  | — |
| 10 |  |  | $ | 1,393 |  |  | 10 |  |  | $ | 1,626 |
Most loans restructured in TDR are accruing and performing loans where the borrower has proactively approached the Company about modification due to temporary financial difficulties. As of March 31, 2016, 95.3% of the Company's $270,308,000 in TDRs were classified as performing. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of between 100 to 200 basis points for a specific term, usually six to twenty four months. Interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. As of March 31, 2016, single-family residential loans comprised 86.4% of TDRs. The Company reserves for restructured loans within its allowance for loan loss methodology by taking into account the following performance indicators: 1) time since modification, 2) current payment status and 3) geographic area. The following table shows the changes in accretable yield for acquired impaired loans and acquired non-impaired loans (including covered loans).
| Six Months Ended March 31, 2016 |  | Year Ended September 30, 2015
| Acquired Impaired |  | Acquired Non-impaired |  | Acquired Impaired |  | Acquired Non-impaired
| Accretable Yield |  | Carrying Amount of Loans |  | Accretable Yield |  | Carrying Amount of Loans |  | Accretable Yield |  | Carrying Amount of Loans |  | Accretable Yield |  | Carrying Amount of Loans
| (In thousands) |  | (In thousands)
Beginning balance | $ | 72,705 |  |  | $ | 111,300 |  |  | $ | 7,204 |  |  | $ | 187,080 |  |  | $ | 97,125 |  |  | $ | 135,826 |  |  | $ | 14,513 |  |  | $ | 275,862 |
Additions | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net reclassification from nonaccretable | — |  |  | — |  |  | — |  |  | — |  |  | 6,307 |  |  | — |  |  | 346 |  |  | — |
Accretion | (11,010 | ) |  | 11,010 |  |  | (1,485 | ) |  | 1,485 |  |  | (30,727 | ) |  | 30,727 |  |  | (7,655 | ) |  | 7,655 |
Transfers to REO | — |  |  | (123 | ) |  | — |  |  | — |  |  | — |  |  | (2,975 | ) |  | — |  |  | (150 | )
Payments received, net | — |  |  | (21,039 | ) |  | — |  |  | (17,419 | ) |  | — |  |  | (52,278 | ) |  | — |  |  | (96,287 | )
Ending Balance | $ | 61,695 |  |  | $ | 101,148 |  |  | $ | 5,719 |  |  | $ | 171,146 |  |  | $ | 72,705 |  |  | $ | 111,300 |  |  | $ | 7,204 |  |  | $ | 187,080 |
The excess of cash flows expected to be collected over the initial fair value of acquired impaired loans is referred to as the accretable yield and this amount is accreted into interest income over the estimated life of the acquired loans using the effective interest method. Other adjustments to the accretable yield include changes in the estimated remaining life of the acquired loans, changes in expected cash flows and changes in the respective indices for acquired loans with variable interest rates. Acquired loans are included in non-performing assets and subject to the general loss reserving methodology if the purchase discount is no longer sufficient to cover expected losses. Additionally, as of March 31, 2016 the Company has $1,455,000 remaining in loans it acquired during fiscal 2013 as part of the South Valley Bank acquisition for which it was probable at acquisition that all contractually required payments would not be collected. The timing and amount of future cash flows cannot not be reasonably estimated; therefore, these loans are accounted for on a cash basis. Covered loans were $34,211,000 at March 31, 2016 compared to $75,909,000 as of September 30, 2015, the decrease being attributable to FDIC loss share coverage on commercial loans from the former Home Valley Bank that expired after September 30, 2015. The FDIC loss share coverage for single family residential loans will continue for another five years. The remaining portfolio of covered loans is expected to continue to decline over time, absent another FDIC assisted transaction. The following table shows activity for the FDIC indemnification asset:
| Six Months Ended March 31, 2016 |  | Year Ended September 30, 2015
| (In thousands)
Balance at beginning of period | $ | 16,275 |  |  | $ | 36,860 |
Additions/Adjustments | — |  |  | (1,795 | )
Payments received | (2,153 | ) |  | (720 | )
Amortization | (773 | ) |  | (18,588 | )
Accretion | 131 |  |  | 518 |
Balance at end of period | $ | 13,480 |  |  | $ | 16,275 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5066-111524 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5162-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5074-111524 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 + Details
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