XML 21 R11.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Loans Receivable | 3 Months Ended
--- | ---
Dec. 31, 2016
Receivables [Abstract] |
Loans Receivable | Loans Receivable The following table is a summary of loans receivable.
| December 31, 2016 |  | September 30, 2016
| (In thousands) |  | (In thousands)
Gross loans by category |  |  |  |  |
Single-family residential | $ | 5,624,263 |  | 49.6 | % |  | $ | 5,658,830 |  | 51.7 | %
Construction | 1,265,747 |  | 11.2 |  |  | 1,110,411 |  | 10.1 |
Construction - custom | 494,447 |  | 4.4 |  |  | 473,069 |  | 4.3 |
Land - acquisition & development | 119,085 |  | 1.1 |  |  | 118,497 |  | 1.1 |
Land - consumer lot loans | 101,104 |  | 0.9 |  |  | 104,567 |  | 1.0 |
Multi-family | 1,217,594 |  | 10.7 |  |  | 1,124,290 |  | 10.3 |
Commercial real estate | 1,207,573 |  | 10.7 |  |  | 1,093,639 |  | 10.0 |
Commercial & industrial | 1,025,821 |  | 9.1 |  |  | 978,589 |  | 8.9 |
HELOC | 148,452 |  | 1.3 |  |  | 149,716 |  | 1.4 |
Consumer | 124,547 |  | 1.1 |  |  | 139,000 |  | 1.3 |
Total gross loans | 11,328,633 |  | 100.0 | % |  | 10,950,608 |  | 100.0 | %
Less: |  |  |  |  |
Allowance for loan losses | 118,456 |  |  |  | 113,494 |  |
Loans in process | 1,027,168 |  |  |  | 879,484 |  |
Net deferred fees, costs and discounts | 46,698 |  |  |  | 46,710 |  |
Total loan contra accounts | 1,192,322 |  |  |  | 1,039,688 |  |
Net loans | $ | 10,136,311 |  |  |  | $ | 9,910,920 |  |
The following table sets forth information regarding non-accrual loans.
| December 31, 2016 |  | September 30, 2016
| (In thousands)
Non-accrual loans: |  |  |  |  |  |  |
Single-family residential | $ | 38,568 |  |  | 63.5 | % |  | $ | 33,148 |  |  | 78.2 | %
Construction | — |  |  | — |  |  | — |  |  | — |
Construction - custom | — |  |  | — |  |  | — |  |  | — |
Land - acquisition & development | 603 |  |  | 1.0 |  |  | 58 |  |  | 0.1 |
Land - consumer lot loans | 969 |  |  | 1.6 |  |  | 510 |  |  | 1.2 |
Multi-family | 1,160 |  |  | 1.9 |  |  | 776 |  |  | 1.8 |
Commercial real estate | 9,660 |  |  | 15.9 |  |  | 7,100 |  |  | 16.7 |
Commercial & industrial | 9,230 |  |  | 15.2 |  |  | 583 |  |  | 1.4 |
HELOC | 480 |  |  | 0.8 |  |  | 239 |  |  | 0.6 |
Consumer | 45 |  |  | 0.1 |  |  | — |  |  | — |
Total non-accrual loans | $ | 60,715 |  |  | 100 | % |  | $ | 42,414 |  |  | 100 | %
The Company recognized interest income on non-accrual loans of approximately $753,000 in the three months ended December 31, 2016. Had these loans performed according to their original contract terms, the Company would have recognized interest income of approximately $547,000 for the three months ended December 31, 2016. Interest income actually recognized during the three months ended December 31, 2016 is higher because of loans that were brought current or paid off. For acquired loans included in the non-accrual loan table above, interest income is still recognized on such loans through accretion of the difference between the carrying amount of the loans and the expected cash flows. The following tables provide details regarding delinquent loans.
December 31, 2016 | Loans Receivable |  | Days Delinquent Based on $ Amount of Loans |  | % based on $
Type of Loan | Net of Loans In Process |  | Current |  | 30 |  | 60 |  | 90 |  | Total |
| (In thousands) |  |
Single-family residential | $ | 5,623,668 |  |  | $ | 5,563,465 |  |  | $ | 16,670 |  |  | $ | 6,808 |  |  | $ | 36,725 |  |  | $ | 60,203 |  |  | 1.07 | %
Construction | 513,046 |  |  | 512,705 |  |  | 341 |  |  | — |  |  | — |  |  | 341 |  |  | 0.07 |
Construction - custom | 236,668 |  |  | 236,511 |  |  | 49 |  |  | 108 |  |  | — |  |  | 157 |  |  | 0.07 |
Land - acquisition & development | 103,148 |  |  | 101,886 |  |  | 728 |  |  | — |  |  | 534 |  |  | 1,262 |  |  | 1.22 |
Land - consumer lot loans | 101,045 |  |  | 99,969 |  |  | 235 |  |  | 43 |  |  | 798 |  |  | 1,076 |  |  | 1.06 |
Multi-family | 1,217,594 |  |  | 1,215,726 |  |  | 853 |  |  | 616 |  |  | 399 |  |  | 1,868 |  |  | 0.15 |
Commercial real estate | 1,175,475 |  |  | 1,167,710 |  |  | 1,771 |  |  | 267 |  |  | 5,727 |  |  | 7,765 |  |  | 0.66 |
Commercial & industrial | 1,057,826 |  |  | 1,056,718 |  |  | 858 |  |  | 250 |  |  | — |  |  | 1,108 |  |  | 0.10 |
HELOC | 148,448 |  |  | 147,074 |  |  | 893 |  |  | — |  |  | 481 |  |  | 1,374 |  |  | 0.93 |
Consumer | 124,547 |  |  | 123,484 |  |  | 662 |  |  | 231 |  |  | 170 |  |  | 1,063 |  |  | 0.85 |
Total Loans | $ | 10,301,465 |  |  | $ | 10,225,248 |  |  | $ | 23,060 |  |  | $ | 8,323 |  |  | $ | 44,834 |  |  | $ | 76,217 |  |  | 0.74 | %
Delinquency % |  |  | 99.26% |  | 0.22% |  | 0.08% |  | 0.44% |  | 0.74% |  |
September 30, 2016 | Loans Receivable |  | Days Delinquent Based on $ Amount of Loans |  | % based on $
Type of Loan | Net of Loans In Process |  | Current |  | 30 |  | 60 |  | 90 |  | Total |
| (In thousands) |  |
Single-family residential | $ | 5,658,122 |  |  | $ | 5,601,457 |  |  | $ | 20,916 |  |  | $ | 5,271 |  |  | $ | 30,478 |  |  | $ | 56,665 |  |  | 1.00 | %
Construction | 498,450 |  |  | 498,450 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction - custom | 229,957 |  |  | 229,419 |  |  | 538 |  |  | — |  |  | — |  |  | 538 |  |  | 0.23 |
Land - acquisition & development | 94,928 |  |  | 94,928 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Land - consumer lot loans | 104,534 |  |  | 102,472 |  |  | 816 |  |  | 687 |  |  | 559 |  |  | 2,062 |  |  | 1.97 |
Multi-family | 1,124,290 |  |  | 1,122,307 |  |  | 1,190 |  |  | 399 |  |  | 394 |  |  | 1,983 |  |  | 0.18 |
Commercial real estate | 1,093,549 |  |  | 1,088,680 |  |  | 69 |  |  | 325 |  |  | 4,475 |  |  | 4,869 |  |  | 0.45 |
Commercial & industrial | 978,582 |  |  | 978,540 |  |  | — |  |  | 42 |  |  | — |  |  | 42 |  |  | — |
HELOC | 149,713 |  |  | 148,513 |  |  | 763 |  |  | 164 |  |  | 273 |  |  | 1,200 |  |  | 0.80 |
Consumer | 138,999 |  |  | 138,078 |  |  | 715 |  |  | 126 |  |  | 80 |  |  | 921 |  |  | 0.66 |
Total Loans | $ | 10,071,124 |  |  | $ | 10,002,844 |  |  | $ | 25,007 |  |  | $ | 7,014 |  |  | $ | 36,259 |  |  | $ | 68,280 |  |  | 0.68 | %
Delinquency % |  |  | 99.32% |  | 0.25% |  | 0.07% |  | 0.36% |  | 0.68% |  |
The percentage of total delinquent loans increased from 0.68% as of September 30, 2016 to 0.74% as of December 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 December 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 | 12 |  |  | $ | 2,134 |  |  | $ | 2,134 |  |  | 3 |  |  | $ | 729 |  |  | $ | 729 |
Land - consumer lot loans | 1 |  |  | 204 |  |  | 204 |  |  | — |  |  | — |  |  | — |
Commercial real estate | — |  |  | — |  |  | — |  |  | 5 |  |  | 965 |  |  | 965 |
HELOC | 1 |  |  | 228 |  |  | 228 |  |  | — |  |  | — |  |  | — |
| 14 |  |  | $ | 2,566 |  |  | $ | 2,566 |  |  | 8 |  |  | $ | 1,694 |  |  | $ | 1,694 |
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 December 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 |  |  | $ | 1,993 |  |  | 5 |  |  | $ | 668 |
Land - consumer lot loans | — |  |  | — |  |  | 1 |  |  | 148 |
Commercial real estate | 2 |  |  | 267 |  |  | — |  |  | — |
| 8 |  |  | $ | 2,260 |  |  | 6 |  |  | $ | 816 |
Most loans restructured in TDRs are accruing and performing loans where the borrower has proactively approached the Company about modification due to temporary financial difficulties. As of December 31, 2016, 94.2% of the Company's $249,950,000 in TDRs were classified as performing. Each request for modification is individually evaluated for merit and likelihood of success. The concession granted in a loan modification 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 December 31, 2016, single-family residential loans comprised 87.2% 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 (including covered loans).
| Three Months Ended December 31, 2016 |  | Twelve Months Ended September 30, 2016
| 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 | $ | 58,842 |  |  | $ | 91,761 |  |  | $ | 4,222 |  |  | $ | 131,132 |  |  | $ | 72,705 |  |  | $ | 111,300 |  |  | $ | 7,204 |  |  | $ | 187,080 |
Additions | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net reclassification from non-accretable | — |  |  | — |  |  | — |  |  | — |  |  | 4,867 |  |  | — |  |  | — |  |  | — |
Accretion | (3,233 | ) |  | 3,233 |  |  | (198 | ) |  | 198 |  |  | (18,730 | ) |  | 18,730 |  |  | (2,982 | ) |  | 2,982 |
Transfers to REO | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (175 | ) |  | — |  |  | — |
Payments received, net | — |  |  | (16,852 | ) |  | — |  |  | 5,211 |  |  | — |  |  | (38,094 | ) |  | — |  |  | (58,930 | )
Ending Balance | $ | 55,609 |  |  | $ | 78,142 |  |  | $ | 4,024 |  |  | $ | 136,541 |  |  | $ | 58,842 |  |  | $ | 91,761 |  |  | $ | 4,222 |  |  | $ | 131,132 |
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. The remaining outstanding balance of covered loans was $26,691,000 at December 31, 2016 compared to $28,974,000 as of September 30, 2016. The FDIC loss share coverage for single family residential loans related to the Horizon Bank and Home Valley Bank acquisitions will continue for another four years. The following table shows activity for the FDIC indemnification asset:
| Three Months Ended December 31, 2016 |  | Twelve Months Ended September 30, 2016
| (In thousands)
Balance at beginning of period | $ | 12,769 |  |  | $ | 16,275 |
Payments made (received) | 242 |  |  | (1,730 | )
Amortization | (387 | ) |  | (2,012 | )
Accretion | 50 |  |  | 236 |
Balance at end of period | $ | 12,674 |  |  | $ | 12,769 |

X
- 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=66008989&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(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 946 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-04(6)) -URI http://asc.fasb.org/extlink&oid=6488278&loc=d3e603758-122996 Reference 4: 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)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 5: 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=66008989&loc=d3e5162-111524 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03(a)(5)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(7)) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 8: 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=66008989&loc=d3e5074-111524 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration