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Loans Receivable | 3 Months Ended
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Dec. 31, 2017
Receivables [Abstract] |
Loans Receivable | Loans Receivable The following table is a summary of loans receivable.
| December 31, 2017 |  | September 30, 2017
| (In thousands) |  | (In thousands)
Gross loans by category |  |  |  |  |
Single-family residential | $ | 5,693,318 |  | 45.7 | % |  | $ | 5,711,004 |  | 46.8 | %
Construction | 1,710,418 |  | 13.7 |  |  | 1,597,996 |  | 13.1 |
Construction - custom | 583,580 |  | 4.7 |  |  | 602,631 |  | 4.9 |
Land - acquisition & development | 136,938 |  | 1.1 |  |  | 124,308 |  | 1.0 |
Land - consumer lot loans | 105,086 |  | 0.8 |  |  | 104,405 |  | 0.9 |
Multi-family | 1,312,695 |  | 10.5 |  |  | 1,303,148 |  | 10.7 |
Commercial real estate | 1,436,508 |  | 11.5 |  |  | 1,434,610 |  | 11.8 |
Commercial & industrial | 1,120,707 |  | 9.0 |  |  | 1,093,360 |  | 9.0 |
HELOC | 136,995 |  | 1.1 |  |  | 144,850 |  | 1.2 |
Consumer | 219,971 |  | 1.8 |  |  | 85,075 |  | 0.7 |
Total gross loans | 12,456,216 |  | 100 | % |  | 12,201,387 |  | 100 | %
Less: |  |  |  |  |
Allowance for loan losses | 127,155 |  |  |  | 123,073 |  |
Loans in process | 1,175,642 |  |  |  | 1,149,934 |  |
Net deferred fees, costs and discounts | 46,377 |  |  |  | 45,758 |  |
Total loan contra accounts | 1,349,174 |  |  |  | 1,318,765 |  |
Net loans | $ | 11,107,042 |  |  |  | $ | 10,882,622 |  |
The following table sets forth information regarding non-accrual loans.
| December 31, 2017 |  | September 30, 2017
| (In thousands)
Non-accrual loans: |  |  |  |  |  |  |
Single-family residential | $ | 26,219 |  |  | 57.7 | % |  | $ | 27,930 |  |  | 56.3 | %
Construction | 364 |  |  | 0.8 |  |  | — |  |  | — |
Construction - custom | — |  |  | — |  |  | 91 |  |  | 0.2 |
Land - acquisition & development | 1,326 |  |  | 2.9 |  |  | 296 |  |  | 0.6 |
Land - consumer lot loans | 976 |  |  | 2.1 |  |  | 605 |  |  | 1.2 |
Multi-family | 250 |  |  | 0.5 |  |  | 139 |  |  | 0.3 |
Commercial real estate | 8,241 |  |  | 18.1 |  |  | 11,815 |  |  | 23.8 |
Commercial & industrial | 7,596 |  |  | 16.7 |  |  | 8,082 |  |  | 16.3 |
HELOC | 476 |  |  | 1.0 |  |  | 531 |  |  | 1.1 |
Consumer | 72 |  |  | 0.2 |  |  | 91 |  |  | 0.2 |
Total non-accrual loans | $ | 45,520 |  |  | 100 | % |  | $ | 49,580 |  |  | 100 | %
% of total net loans | 0.41 | % |  |  |  | 0.46 | % |  |
The Company recognized interest income on non-accrual loans of approximately $2,551,000 in the three months ended December 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 $489,000 for the three months ended December 31, 2017. Interest cash flows collected on non-accrual loans varies from period to period as those loans are brought current or are paid off. The following tables provide details regarding delinquent loans.
December 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 Delinquent |
| (In thousands) |  |
Single-family residential | $ | 5,692,045 |  |  | $ | 5,655,873 |  |  | $ | 9,801 |  |  | $ | 6,073 |  |  | $ | 20,298 |  |  | $ | 36,172 |  |  | 0.64 | %
Construction | 852,164 |  |  | 847,793 |  |  | 1,500 |  |  | 2,507 |  |  | 364 |  |  | 4,371 |  |  | 0.51 |
Construction - custom | 292,255 |  |  | 292,255 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Land - acquisition & development | 112,260 |  |  | 111,018 |  |  | — |  |  | — |  |  | 1,242 |  |  | 1,242 |  |  | 1.11 |
Land - consumer lot loans | 104,996 |  |  | 104,246 |  |  | 107 |  |  | 153 |  |  | 490 |  |  | 750 |  |  | 0.71 |
Multi-family | 1,312,673 |  |  | 1,312,423 |  |  | — |  |  | — |  |  | 250 |  |  | 250 |  |  | 0.02 |
Commercial real estate | 1,436,508 |  |  | 1,436,064 |  |  | 129 |  |  | — |  |  | 315 |  |  | 444 |  |  | 0.03 |
Commercial & industrial | 1,120,707 |  |  | 1,117,240 |  |  | 2,894 |  |  | — |  |  | 573 |  |  | 3,467 |  |  | 0.31 |
HELOC | 136,995 |  |  | 136,004 |  |  | 439 |  |  | 147 |  |  | 405 |  |  | 991 |  |  | 0.72 |
Consumer | 219,971 |  |  | 219,404 |  |  | 352 |  |  | 154 |  |  | 61 |  |  | 567 |  |  | 0.26 |
Total Loans | $ | 11,280,574 |  |  | $ | 11,232,320 |  |  | $ | 15,222 |  |  | $ | 9,034 |  |  | $ | 23,998 |  |  | $ | 48,254 |  |  | 0.43 | %
Delinquency % |  |  | 99.57% |  | 0.13% |  | 0.08% |  | 0.21% |  | 0.43% |  |
September 30, 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 Delinquent |
| (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 increased from 0.40% as of September 30, 2017 to 0.43% as of December 31, 2017 and there are no loans greater than 90 days delinquent and still accruing interest as of either date. The following table provides information related to loans that were restructured in a troubled debt restructuring ("TDR") during the periods presented:
| Three Months Ended December 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 |  |  | $ | 2,012 |  |  | $ | 2,012 |  |  | 12 |  |  | $ | 2,134 |  |  | $ | 2,134 |
Land - consumer lot loans | — |  |  | — |  |  | — |  |  | 1 |  |  | 204 |  |  | 204 |
Commercial & Industrial | 3 |  |  | 7,256 |  |  | 7,256 |  |  | — |  |  | — |  |  | — |
HELOC | — |  |  | — |  |  | — |  |  | 1 |  |  | 228 |  |  | 228 |
| 11 |  |  | $ | 9,268 |  |  | $ | 9,268 |  |  | 14 |  |  | $ | 2,566 |  |  | $ | 2,566 |
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.
| Three Months Ended December 31,
| 2017 |  | 2016
| Number of |  | Recorded |  | Number of |  | Recorded
| Contracts |  | Investment |  | Contracts |  | Investment
| (In thousands) |  | (In thousands)
TDRs That Subsequently Defaulted: |  |  |  |  |  |  |
Single-family residential | 1 |  |  | $ | 44 |  |  | 6 |  |  | $ | 1,993 |
Commercial real estate | — |  |  | — |  |  | 2 |  |  | 267 |
| 1 |  |  | $ | 44 |  |  | 8 |  |  | $ | 2,260 |
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, 2017, 97.6% of the Company's $199,175,000 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, 2017, single-family residential loans comprised 85.7% 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 Company's remaining outstanding balance of assets subject to FDIC loss share agreements was $58,699,000 (including $54,865,000 of loans receivable) at December 31, 2017 compared to $67,914,000 (including $61,810,114 of loans receivable) as of September 30, 2017. As of December 31, 2017, the associated FDIC indemnification asset was $0 compared to a balance of $8,967,000 as of September 30, 2017. The FDIC clawback liability was $39,906,000 as of December 31, 2017 and $37,143,000 as of September 30, 2017. The Company has made a proposal to the FDIC to early terminate its remaining FDIC loss share agreements, which relate to the Horizon Bank and Home Valley Bank acquisitions. During the three months ended December 31, 2017, the Company recorded an $8,550,000 charge resulting from valuation adjustments related to the FDIC indemnification asset and FDIC clawback liability. The valuation adjustments were based on management's estimate of the amount that would be due to the FDIC to early terminate the loss share agreements.

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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=84173941&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=84173941&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=84173941&loc=d3e5074-111524 + Details
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