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Loans Receivable | 12 Months Ended
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Sep. 30, 2018
Receivables [Abstract] |
Loans Receivable | LOANS RECEIVABLE The following table is a summary of loans receivable.
| September 30, 2018 |  | September 30, 2017
| (In thousands) |  | (In thousands)
Gross loans by category |  |  |  |  |
Single-family residential | $ | 5,798,966 |  | 45.1 | % |  | $ | 5,711,004 |  | 46.8 | %
Construction | 1,890,668 |  | 14.7 |  |  | 1,597,996 |  | 13.1 |
Construction - custom | 624,479 |  | 4.9 |  |  | 602,631 |  | 4.9 |
Land - acquisition & development | 155,204 |  | 1.2 |  |  | 124,308 |  | 1.0 |
Land - consumer lot loans | 102,036 |  | 0.8 |  |  | 104,405 |  | 0.9 |
Multi-family | 1,385,125 |  | 10.8 |  |  | 1,303,148 |  | 10.7 |
Commercial real estate | 1,452,168 |  | 11.3 |  |  | 1,434,610 |  | 11.8 |
Commercial & industrial | 1,140,874 |  | 8.9 |  |  | 1,093,360 |  | 9.0 |
HELOC | 130,852 |  | 1.0 |  |  | 144,850 |  | 1.2 |
Consumer | 173,306 |  | 1.3 |  |  | 85,075 |  | 0.7 |
Total gross loans | 12,853,678 |  | 100 | % |  | 12,201,387 |  | 100 | %
Less: |  |  |  |  |
Allowance for probable losses | 129,257 |  |  |  | 123,073 |  |
Loans in process | 1,195,506 |  |  |  | 1,149,934 |  |
Net deferred fees, costs and discounts | 51,834 |  |  |  | 45,758 |  |
Total loan contra accounts | 1,376,597 |  |  |  | 1,318,765 |  |
Net loans | $ | 11,477,081 |  |  |  | $ | 10,882,622 |  |
The following summary breaks down the Company's fixed rate and adjustable rate loans by time to maturity or to rate adjustment.
September 30, 2018
Fixed-Rate |  | Adjustable-Rate
Term To Maturity | Gross Loans | % of Gross Loans |  | Term To Rate Adjustment | Gross Loans | % of Gross Loans
| (In thousands) |  |  |  | (In thousands) |
Within 1 year | $ | 90,107 |  | 0.7 | % |  | Less than 1 year | $ | 3,003,472 |  | 23.4 | %
1 to 3 years | 205,442 |  | 1.6 |  |  | 1 to 3 years | 873,078 |  | 6.8 |
3 to 5 years | 280,760 |  | 2.2 |  |  | 3 to 5 years | 669,331 |  | 5.2 |
5 to 10 years | 1,069,783 |  | 8.3 |  |  | 5 to 10 years | 395,157 |  | 3.1 |
10 to 20 years | 1,137,196 |  | 8.8 |  |  | 10 to 20 years | 45,603 |  | 0.4 |
Over 20 years | 5,061,088 |  | 39.4 |  |  | Over 20 years | 22,661 |  | 0.2 |
| $ | 7,844,376 |  | 61.0 | % |  |  | $ | 5,009,302 |  | 39.0 | %
The following tables provide information regarding loans receivable by loan category and geography.
September 30, 2018 | Single - family residential | Multi- family | Land - A & D | Land - lot loans | Construction - custom | Construction | Commercial real estate | Commercial and industrial | Consumer | HELOC | Total
| (In thousands)
Washington | $ | 3,090,079 |  | $ | 341,695 |  | $ | 63,706 |  | $ | 63,268 |  | $ | 353,475 |  | $ | 593,536 |  | $ | 414,817 |  | $ | 483,288 |  | $ | 122,653 |  | $ | 76,276 |  | $ | 5,602,793 |
Oregon | 678,072 |  | 376,679 |  | 31,143 |  | 13,773 |  | 68,897 |  | 390,169 |  | 283,945 |  | 251,028 |  | 1,622 |  | 12,156 |  | 2,107,484 |
Arizona | 581,099 |  | 367,192 |  | 12,083 |  | 10,662 |  | 73,476 |  | 205,420 |  | 259,280 |  | 65,638 |  | 180 |  | 12,842 |  | 1,587,872 |
Utah | 523,402 |  | 40,678 |  | 156 |  | 4,208 |  | 62,414 |  | 301,747 |  | 30,622 |  | 37,271 |  | 15 |  | 8,710 |  | 1,009,223 |
Texas | 176,887 |  | 58,618 |  | 6,858 |  | 413 |  | 6,297 |  | 290,064 |  | 117,160 |  | 98,961 |  | 464 |  | — |  | 755,722 |
New Mexico | 197,107 |  | 131,290 |  | 20,920 |  | 2,312 |  | 28,797 |  | 62,818 |  | 174,385 |  | 19,560 |  | 748 |  | 11,695 |  | 649,632 |
Idaho | 311,613 |  | 42,509 |  | 20,338 |  | 4,429 |  | 24,514 |  | 42,554 |  | 91,202 |  | 37,327 |  | 103 |  | 7,160 |  | 581,749 |
Nevada | 198,007 |  | 26,260 |  | — |  | 2,895 |  | 6,609 |  | — |  | 20,488 |  | 17,865 |  | 24 |  | 1,962 |  | 274,110 |
Other | 42,700 |  | 204 |  | — |  | 76 |  | — |  | 4,360 |  | 60,269 |  | 129,936 |  | 47,497 |  | 51 |  | 285,093 |
| $ | 5,798,966 |  | $ | 1,385,125 |  | $ | 155,204 |  | $ | 102,036 |  | $ | 624,479 |  | $ | 1,890,668 |  | $ | 1,452,168 |  | $ | 1,140,874 |  | $ | 173,306 |  | $ | 130,852 |  | $ | 12,853,678 |
Percentage by geographic area
September 30, 2018 | Single - family residential | Multi- family | Land - A & D | Land - lot loans | Construction - custom | Construction | Commercial real estate | Commercial and industrial | Consumer | HELOC | Total
| As % of total gross loans
Washington | 24.1 | % | 2.7 | % | 0.4 | % | 0.6 | % | 2.8 | % | 4.7 | % | 3.2 | % | 3.7 | % | 0.9 | % | 0.5 | % | 43.6 | %
Oregon | 5.3 |  | 2.9 |  | 0.2 |  | 0.1 |  | 0.5 |  | 3.0 |  | 2.2 |  | 2.0 |  | — |  | 0.1 |  | 16.3 |
Arizona | 4.5 |  | 2.9 |  | 0.1 |  | 0.1 |  | 0.6 |  | 1.6 |  | 2.0 |  | 0.5 |  | — |  | 0.1 |  | 12.4 |
Utah | 4.1 |  | 0.3 |  | — |  | — |  | 0.5 |  | 2.3 |  | 0.2 |  | 0.3 |  | — |  | 0.1 |  | 7.8 |
Texas | 1.4 |  | 0.5 |  | 0.1 |  | — |  | — |  | 2.3 |  | 0.9 |  | 0.8 |  | — |  | — |  | 6.0 |
New Mexico | 1.5 |  | 1.0 |  | 0.2 |  | — |  | 0.2 |  | 0.5 |  | 1.4 |  | 0.2 |  | — |  | 0.1 |  | 5.1 |
Idaho | 2.4 |  | 0.3 |  | 0.2 |  | — |  | 0.2 |  | 0.3 |  | 0.7 |  | 0.3 |  | — |  | 0.1 |  | 4.5 |
Nevada | 1.5 |  | 0.2 |  | — |  | — |  | 0.1 |  | — |  | 0.2 |  | 0.1 |  | — |  | — |  | 2.1 |
Other | 0.3 |  | — |  | — |  | — |  | — |  | — |  | 0.5 |  | 1.0 |  | 0.4 |  | — |  | 2.2 |
| 45.1 | % | 10.8 | % | 1.2 | % | 0.8 | % | 4.9 | % | 14.7 | % | 11.3 | % | 8.9 | % | 1.3 | % | 1.0 | % | 100 | %
Percentage by geographic area as a % of each loan type
September 30, 2018 | Single - family residential | Multi- family | Land - A & D | Land - lot loans | Construction - custom | Construction | Commercial real estate | Commercial and industrial | Consumer | HELOC
| As % of total gross loans
Washington | 53.3 | % | 24.7 | % | 41.0 | % | 62.0 | % | 56.6 | % | 31.4 | % | 28.6 | % | 42.4 | % | 70.8 | % | 58.3 | %
Oregon | 11.7 |  | 27.2 |  | 20.1 |  | 13.5 |  | 11.0 |  | 20.6 |  | 19.6 |  | 22.0 |  | 0.9 |  | 9.3 |
Arizona | 10.0 |  | 26.5 |  | 7.8 |  | 10.4 |  | 11.8 |  | 10.9 |  | 17.9 |  | 5.8 |  | 0.1 |  | 9.8 |
Utah | 9.0 |  | 2.9 |  | 0.1 |  | 4.1 |  | 10.0 |  | 16.0 |  | 2.1 |  | 3.3 |  | — |  | 6.7 |
Texas | 3.1 |  | 4.2 |  | 4.4 |  | 0.4 |  | 1.0 |  | 15.3 |  | 8.1 |  | 8.7 |  | 0.3 |  | — |
New Mexico | 3.4 |  | 9.5 |  | 13.5 |  | 2.3 |  | 4.6 |  | 3.3 |  | 12.0 |  | 1.7 |  | 0.4 |  | 8.9 |
Idaho | 5.4 |  | 3.1 |  | 13.1 |  | 4.3 |  | 3.9 |  | 2.3 |  | 6.3 |  | 3.3 |  | 0.1 |  | 5.5 |
Nevada | 3.4 |  | 1.9 |  | — |  | 2.8 |  | 1.1 |  | — |  | 1.4 |  | 1.6 |  | — |  | 1.5 |
Other | 0.7 |  | — |  | — |  | 0.1 |  | — |  | 0.2 |  | 4.2 |  | 11.4 |  | 27.4 |  | — |
| 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | %
The Company has granted loans to officers and directors of the Company and related interests. These loans are made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than the normal risk of collectability. The aggregate dollar amount of these loans, including unfunded commitments to lend, was $70,012,000 and $84,166,000 at September 30, 2018 and 2017, respectively. As of September 30, 2018, all of these loans were performing in accordance with contractual terms. The following table provides additional information on impaired loans, loan commitments and loans serviced for others.
| September 30, 2018 |  | September 30, 2017
| (In thousands)
Recorded investment in impaired loans | $ | 199,545 |  |  | $ | 251,274 |
TDRs included in impaired loans | 156,858 |  |  | 207,377 |
Specific reserves on impaired loans | 517 |  |  | 126 |
Average balance of impaired loans for year ended | 228,398 |  |  | 274,530 |
Interest income from impaired loans for year ended | 10,232 |  |  | 11,736 |
Outstanding fixed-rate origination commitments | 400,426 |  |  | 425,130 |
Gross loans serviced for others | 77,958 |  |  | 77,119 |
The following table sets forth information regarding non-accrual loans.
| September 30, 2018 |  | September 30, 2017
| (In thousands) |  | (In thousands)
Non-accrual loans: |  |  |  |  |  |  |
Single-family residential | $ | 27,643 |  |  | 49.6 | % |  | $ | 27,930 |  |  | 56.3 | %
Construction | 2,427 |  |  | 4.4 |  |  | — |  |  | — |
Construction - custom | — |  |  | — |  |  | 91 |  |  | 0.2 |
Land - acquisition & development | 920 |  |  | 1.7 |  |  | 296 |  |  | 0.6 |
Land - consumer lot loans | 787 |  |  | 1.4 |  |  | 605 |  |  | 1.2 |
Multi-family | — |  |  | — |  |  | 139 |  |  | 0.3 |
Commercial real estate | 8,971 |  |  | 16.1 |  |  | 11,815 |  |  | 23.8 |
Commercial & industrial | 14,394 |  |  | 25.8 |  |  | 8,082 |  |  | 16.3 |
HELOC | 523 |  |  | 0.9 |  |  | 531 |  |  | 1.1 |
Consumer | 21 |  |  | — |  |  | 91 |  |  | 0.2 |
Total non-accrual loans | $ | 55,686 |  |  | 100 | % |  | $ | 49,580 |  |  | 100 | %
Non-accrual loans as % of total loans | 0.49 | % |  |  |  | 0.46 | % |  |
The following tables break down delinquent loans by loan category and delinquency bucket.
September 30, 2018 | Amount of Loans |  | Days Delinquent Based on $ Amount of Loans |  | % based on $
Loan type | Net of Loans in Process |  | Current |  | 30 |  | 60 |  | 90 |  | Total |
| (In thousands) |  |
Single-family residential | $ | 5,798,353 |  |  | $ | 5,768,253 |  |  | $ | 7,983 |  |  | $ | 3,562 |  |  | $ | 18,555 |  |  | $ | 30,100 |  |  | 0.52 | %
Construction | 1,062,855 |  |  | 1,060,428 |  |  | — |  |  | — |  |  | 2,427 |  |  | 2,427 |  |  | 0.23 |
Construction - custom | 289,192 |  |  | 289,192 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Land - acquisition & development | 123,560 |  |  | 122,620 |  |  | — |  |  | 270 |  |  | 670 |  |  | 940 |  |  | 0.76 |
Land - consumer lot loans | 101,908 |  |  | 101,294 |  |  | 144 |  |  | 117 |  |  | 353 |  |  | 614 |  |  | 0.60 |
Multi-family | 1,385,103 |  |  | 1,385,103 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate | 1,452,169 |  |  | 1,448,946 |  |  | 316 |  |  | 1,767 |  |  | 1,140 |  |  | 3,223 |  |  | 0.22 |
Commercial & industrial | 1,140,874 |  |  | 1,130,836 |  |  | — |  |  | — |  |  | 10,038 |  |  | 10,038 |  |  | 0.88 |
HELOC | 130,852 |  |  | 129,510 |  |  | 567 |  |  | 469 |  |  | 306 |  |  | 1,342 |  |  | 1.03 |
Consumer | 173,306 |  |  | 172,777 |  |  | 172 |  |  | 328 |  |  | 29 |  |  | 529 |  |  | 0.31 |
Total Loans | $ | 11,658,172 |  |  | $ | 11,608,959 |  |  | $ | 9,182 |  |  | $ | 6,513 |  |  | $ | 33,518 |  |  | $ | 49,213 |  |  | 0.42 | %
Delinquency % |  |  | 99.58% |  | 0.08% |  | 0.06% |  | 0.29% |  | 0.42% |  |
September 30, 2017 | Amount of Loans |  | Days Delinquent Based on $ Amount of Loans |  | % based on $
Loan type | Net of Loans in Process |  | Current |  | 30 |  | 60 |  | 90 |  | Total |
| (In thousands) |  |
Single-family residential | $ | 5,709,690 |  |  | $ | 5,671,933 |  |  | $ | 10,925 |  |  | $ | 4,810 |  |  | $ | 22,022 |  |  | $ | 37,757 |  |  | 0.66 | %
Construction | 793,959 |  |  | 793,959 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction - custom | 277,599 |  |  | 277,508 |  |  | — |  |  | — |  |  | 91 |  |  | 91 |  |  | 0.03 |
Land - acquisition & development | 104,856 |  |  | 104,526 |  |  | — |  |  | — |  |  | 330 |  |  | 330 |  |  | 0.31 |
Land - consumer lot loans | 104,335 |  |  | 103,389 |  |  | 112 |  |  | 680 |  |  | 154 |  |  | 946 |  |  | 0.91 |
Multi-family | 1,303,119 |  |  | 1,302,720 |  |  | 5 |  |  | 255 |  |  | 139 |  |  | 399 |  |  | 0.03 |
Commercial real estate | 1,434,610 |  |  | 1,432,052 |  |  | 507 |  |  | — |  |  | 2,051 |  |  | 2,558 |  |  | 0.18 |
Commercial & industrial | 1,093,360 |  |  | 1,092,735 |  |  | — |  |  | 51 |  |  | 574 |  |  | 625 |  |  | 0.06 |
HELOC | 144,850 |  |  | 143,974 |  |  | 221 |  |  | 342 |  |  | 313 |  |  | 876 |  |  | 0.60 |
Consumer | 85,075 |  |  | 84,644 |  |  | 245 |  |  | 107 |  |  | 79 |  |  | 431 |  |  | 0.51 |
Total Loans | $ | 11,051,453 |  |  | $ | 11,007,440 |  |  | $ | 12,015 |  |  | $ | 6,245 |  |  | $ | 25,753 |  |  | $ | 44,013 |  |  | 0.40 | %
Delinquency % |  |  | 99.60% |  | 0.11% |  | 0.06% |  | 0.23% |  | 0.40% |  |
The percentage of total delinquent loans was 0.42% as of September 30, 2018, as compared to 0.40% as of September 30, 2017. Most loans restructured in troubled debt restructurings ("TDRs") are accruing and performing loans where the borrower has proactively approached the Company about modifications due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of 100 to 200 bps for a specific term, usually six to 12 months. Interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. As of September 30, 2018, the outstanding balance of TDR's was $156,858,000 as compared to $207,377,000 as of September 30, 2017. As of September 30, 2018, 96.1% of the restructured loans were performing. Single-family residential loans comprised 89.1% of TDR loans as of September 30, 2018. 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 provides information related to loans that were modified in a TDR during the periods presented.
| Twelve Months Ended September 30, 2018 |  | Twelve Months Ended September 30, 2017
|  |  | Pre-Modification |  | Post-Modification |  |  |  | Pre-Modification |  | Post-Modification
|  |  | Outstanding |  | Outstanding |  |  |  | Outstanding |  | Outstanding
| Number of |  | Recorded |  | Recorded |  | Number of |  | Recorded |  | Recorded
Troubled Debt Restructurings: | Contracts |  | Investment |  | Investment |  | Contracts |  | Investment |  | Investment
|  |  | (In thousands) |  |  |  | (In thousands)
Single-family residential | 27 |  |  | $ | 5,070 |  |  | $ | 5,070 |  |  | 38 |  |  | $ | 7,115 |  |  | $ | 7,115 |
Land - acquisition & development | 1 |  |  | 107 |  |  | 107 |  |  | — |  |  | — |  |  | — |
Land - consumer lot loans | — |  |  | — |  |  | — |  |  | 2 |  |  | 211 |  |  | 211 |
Commercial real estate | 1 |  |  | 120 |  |  | 120 |  |  | — |  |  | — |  |  | — |
Commercial & industrial | 4 |  |  | 7,739 |  |  | 7,739 |  |  | — |  |  | — |  |  | — |
HELOC | 2 |  |  | 95 |  |  | 95 |  |  | 4 |  |  | 552 |  |  | 552 |
Consumer | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
| 36 |  |  | $ | 13,131 |  |  | $ | 13,131 |  |  | 44 |  |  | $ | 7,878 |  |  | $ | 7,878 |
The following table provides 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.
| Twelve Months Ended September 30, 2018 |  | Twelve Months Ended September 30, 2017
| Number of |  | Recorded |  | Number of |  | Recorded
TDRs That Subsequently Defaulted: | Contracts |  | Investment |  | Contracts |  | Investment
| (In thousands) |  | (In thousands)
Single-family residential | 4 |  |  | $ | 433 |  |  | 24 |  |  | $ | 4,214 |
Commercial real estate | — |  |  | — |  |  | 2 |  |  | 267 |
HELOC | 1 |  |  | 77 |  |  | — |  |  | — |
| 5 |  |  | $ | 510 |  |  | 26 |  |  | $ | 4,481 |
In May 2018, the Bank entered into an agreement with the FDIC to early terminate its remaining FDIC loss share agreements, which related to the Horizon Bank and Home Valley Bank acquisitions. The Bank paid $39,906,000 to settle the FDIC clawback liability and under the termination agreement, all rights and obligations of the Bank and the FDIC have been resolved and completed. As such, future recoveries, gains, losses and expenses related to the previously covered assets will now be recognized entirely by the Bank and the FDIC will no longer share in such gains or losses.

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