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Loans Receivable | 6 Months Ended
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Mar. 31, 2017
Receivables [Abstract] |
Loans Receivable | Loans Receivable The following table is a summary of loans receivable.
| March 31, 2017 |  | September 30, 2016
| (In thousands) |  | (In thousands)
Gross loans by category |  |  |  |  |
Single-family residential | $ | 5,693,072 |  | 48.9 | % |  | $ | 5,658,830 |  | 51.7 | %
Construction | 1,311,635 |  | 11.3 |  |  | 1,110,411 |  | 10.1 |
Construction - custom | 527,319 |  | 4.5 |  |  | 473,069 |  | 4.3 |
Land - acquisition & development | 118,726 |  | 1.0 |  |  | 118,497 |  | 1.1 |
Land - consumer lot loans | 101,227 |  | 0.9 |  |  | 104,567 |  | 1.0 |
Multi-family | 1,266,911 |  | 10.9 |  |  | 1,124,290 |  | 10.3 |
Commercial real estate | 1,296,039 |  | 11.1 |  |  | 1,093,639 |  | 10.0 |
Commercial & industrial | 1,071,629 |  | 9.2 |  |  | 978,589 |  | 8.9 |
HELOC | 146,172 |  | 1.3 |  |  | 149,716 |  | 1.4 |
Consumer | 107,759 |  | 0.9 |  |  | 139,000 |  | 1.3 |
Total gross loans | 11,640,489 |  | 100.0 | % |  | 10,950,608 |  | 100.0 | %
Less: |  |  |  |  |
Allowance for loan losses | 121,922 |  |  |  | 113,494 |  |
Loans in process | 1,009,937 |  |  |  | 879,484 |  |
Net deferred fees, costs and discounts | 45,608 |  |  |  | 46,710 |  |
Total loan contra accounts | 1,177,467 |  |  |  | 1,039,688 |  |
Net loans | $ | 10,463,022 |  |  |  | $ | 9,910,920 |  |
The following table sets forth information regarding non-accrual loans.
| March 31, 2017 |  | September 30, 2016
| (In thousands)
Non-accrual loans: |  |  |  |  |  |  |
Single-family residential | $ | 34,373 |  |  | 60.1 | % |  | $ | 33,148 |  |  | 78.2 | %
Construction - custom | 240 |  |  | 0.4 |  |  | — |  |  | — |
Land - acquisition & development | 80 |  |  | 0.1 |  |  | 58 |  |  | 0.1 |
Land - consumer lot loans | 1,129 |  |  | 2.0 |  |  | 510 |  |  | 1.2 |
Multi-family | 1,364 |  |  | 2.4 |  |  | 776 |  |  | 1.8 |
Commercial real estate | 10,507 |  |  | 18.4 |  |  | 7,100 |  |  | 16.7 |
Commercial & industrial | 8,864 |  |  | 15.5 |  |  | 583 |  |  | 1.4 |
HELOC | 583 |  |  | 1.0 |  |  | 239 |  |  | 0.6 |
Consumer | 55 |  |  | 0.1 |  |  | — |  |  | — |
Total non-accrual loans | $ | 57,195 |  |  | 100 | % |  | $ | 42,414 |  |  | 100 | %
The Company recognized interest income on non-accrual loans of approximately $1,094,000 in the six months ended March 31, 2017. Had these loans been on accrual status and performed according to their original contract terms, the Company would have recognized interest income of approximately $1,134,000 for the six months ended March 31, 2017. Interest cash flows collected on non-accrual loans varies from period to period as those loans are brought current or get 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.
March 31, 2017 | 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 | $ | 5,692,305 |  |  | $ | 5,639,158 |  |  | $ | 13,644 |  |  | $ | 7,660 |  |  | $ | 31,843 |  |  | $ | 53,147 |  |  | 0.93 | %
Construction | 593,479 |  |  | 592,877 |  |  | 601 |  |  | — |  |  | — |  |  | 601 |  |  | 0.10 |
Construction - custom | 251,906 |  |  | 251,666 |  |  | — |  |  | — |  |  | 240 |  |  | 240 |  |  | 0.10 |
Land - acquisition & development | 103,280 |  |  | 103,018 |  |  | 262 |  |  | — |  |  | — |  |  | 262 |  |  | 0.25 |
Land - consumer lot loans | 101,168 |  |  | 99,907 |  |  | 360 |  |  | 333 |  |  | 568 |  |  | 1,261 |  |  | 1.25 |
Multi-family | 1,266,845 |  |  | 1,265,622 |  |  | — |  |  | — |  |  | 1,224 |  |  | 1,224 |  |  | 0.10 |
Commercial real estate | 1,296,019 |  |  | 1,289,677 |  |  | 1,802 |  |  | 298 |  |  | 4,242 |  |  | 6,342 |  |  | 0.49 |
Commercial & industrial | 1,071,622 |  |  | 1,066,658 |  |  | 4,964 |  |  | — |  |  | — |  |  | 4,964 |  |  | 0.46 |
HELOC | 146,169 |  |  | 145,355 |  |  | 124 |  |  | 20 |  |  | 670 |  |  | 814 |  |  | 0.56 |
Consumer | 107,759 |  |  | 107,158 |  |  | 405 |  |  | 98 |  |  | 98 |  |  | 601 |  |  | 0.56 |
Total Loans | $ | 10,630,552 |  |  | $ | 10,561,096 |  |  | $ | 22,162 |  |  | $ | 8,409 |  |  | $ | 38,885 |  |  | $ | 69,456 |  |  | 0.65 | %
Delinquency % |  |  | 99.35% |  | 0.21% |  | 0.08% |  | 0.37% |  | 0.65% |  |
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 decreased from 0.68% as of September 30, 2016 to 0.65% as of March 31, 2017 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,
| 2017 |  | 2016
|  |  | 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 | 8 |  |  | $ | 1,712 |  |  | $ | 1,712 |  |  | 7 |  |  | $ | 1,101 |  |  | $ | 1,101 |
| 8 |  |  | $ | 1,712 |  |  | $ | 1,712 |  |  | 7 |  |  | $ | 1,101 |  |  | $ | 1,101 |
| Six Months Ended March 31,
| 2017 |  | 2016
|  |  | 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 | 20 |  |  | $ | 3,846 |  |  | $ | 3,846 |  |  | 10 |  |  | $ | 1,830 |  |  | $ | 1,830 |
Land - consumer lot loans | 1 |  |  | 204 |  |  | 204 |  |  | — |  |  | — |  |  | — |
Commercial real estate | — |  |  | — |  |  | — |  |  | 5 |  |  | 965 |  |  | 965 |
HELOC | 1 |  |  | 228 |  |  | 228 |  |  | — |  |  | — |  |  | — |
| 22 |  |  | $ | 4,278 |  |  | $ | 4,278 |  |  | 15 |  |  | $ | 2,795 |  |  | $ | 2,795 |
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,
| 2017 |  | 2016
| Number of |  | Recorded |  | Number of |  | Recorded
| Contracts |  | Investment |  | Contracts |  | Investment
| (In thousands) |  | (In thousands)
TDRs That Subsequently Defaulted: |  |  |  |  |  |  |
Single-family residential | 7 |  |  | $ | 1,192 |  |  | 6 |  |  | $ | 871 |
Land - consumer lot loans | — |  |  | — |  |  | 1 |  |  | 146 |
Commercial real estate | — |  |  | — |  |  | 1 |  |  | 152 |
| 7 |  |  | $ | 1,192 |  |  | 8 |  |  | $ | 1,169 |
| Six Months Ended March 31,
| 2017 |  | 2016
| Number of |  | Recorded |  | Number of |  | Recorded
| Contracts |  | Investment |  | Contracts |  | Investment
| (In thousands) |  | (In thousands)
TDRs That Subsequently Defaulted: |  |  |  |  |  |  |
Single-family residential | 13 |  |  | $ | 3,185 |  |  | 8 |  |  | $ | 1,095 |
Land - consumer lot loans | — |  |  | — |  |  | 1 |  |  | 146 |
Commercial real estate | 2 |  |  | 267 |  |  | 1 |  |  | 152 |
| 15 |  |  | $ | 3,452 |  |  | 10 |  |  | $ | 1,393 |
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 March 31, 2017, 95.0% of the Company's $233,901,000 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 March 31, 2017, single-family residential loans comprised 87.6% of TDRs. The Company reserves for restructured loans within its allowance for loan loss methodology by taking into account the following performance indicators: 1) time since modification, 2) current payment status and 3) geographic area. The remaining outstanding balance of covered loans was $24,428,000 at March 31, 2017 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:
| Six Months Ended March 31, 2017 |  | Twelve Months Ended September 30, 2016
| (In thousands)
Balance at beginning of period | $ | 12,769 |  |  | $ | 16,275 |
Payments made (received) | (264 | ) |  | (1,730 | )
Amortization | (802 | ) |  | (2,012 | )
Accretion | 118 |  |  | 236 |
Balance at end of period | $ | 11,821 |  |  | $ | 12,769 |

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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=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
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