Loans Receivable

The following table is a summary of loans receivable.



	March 31, 2019				September 30, 2018
	(In thousands)				(In thousands)
Gross loans by category
Single-family residential	$	5,861,404	44.3	%	$	5,798,966	45.1	%
Construction	1,980,274		15.0		1,890,668		14.7
Construction - custom	586,515		4.4		624,479		4.9
Land - acquisition & development	194,739		1.5		155,204		1.2
Land - consumer lot loans	97,152		0.7		102,036		0.8
Multi-family	1,423,723		10.7		1,385,125		10.8
Commercial real estate	1,570,502		11.9		1,452,168		11.3
Commercial & industrial	1,230,888		9.3		1,140,874		8.9
HELOC	139,203		1.0		130,852		1.0
Consumer	156,002		1.2		173,306		1.3
Total gross loans	13,240,402		100	%	12,853,678		100	%
Less:
Allowance for loan losses	133,086				129,257
Loans in process	1,162,787				1,195,506
Net deferred fees, costs and discounts	49,693				51,834
Total loan contra accounts	1,345,566				1,376,597
Net loans	$	11,894,836			$	11,477,081

The following table sets forth information regarding non-accrual loans.



	March 31, 2019					September 30, 2018
	(In thousands, except ratio data)
Non-accrual loans:
Single-family residential	$	24,474		50.0	%	$	27,643		49.6	%
Construction	1,282			2.6		2,427			4.4
Land - acquisition & development	242			0.5		920			1.7
Land - consumer lot loans	579			1.2		787			1.4
Commercial real estate	9,162			18.7		8,971			16.1
Commercial & industrial	12,366			25.3		14,394			25.8
HELOC	812			1.7		523			0.9
Consumer	24			—		21			—
Total non-accrual loans	$	48,941		100	%	$	55,686		100	%
% of total net loans	0.41		%			0.49		%

The Company recognized interest income on non-accrual loans of approximately $1,571,000 in the six months ended March 31, 2019. Had these loans been on accrual status and performed according to their original contract terms, the Company would have recognized interest income of approximately $1,151,000 for the six months ended March 31, 2019. Recognized interest income for the six months ended March 31, 2019 was higher than what otherwise would have been collected in the period due to the collection of past due amounts. Interest cash flows collected on non-accrual loans vary from period to period as those loans are brought current or are paid off.

The following tables provide details regarding delinquent loans.



March 31, 2019	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		% based on $
	(In thousands, except ratio data)
Single-family residential	$	5,860,365	$	5,830,848	$	10,018	$	2,672	$	16,827	$	29,517	0.50	%
Construction	1,139,970		1,138,688		—		—		1,282		1,282		0.11
Construction - custom	307,405		306,929		—		476		—		476		0.15
Land - acquisition & development	152,546		152,394		152		—		—		152		0.10
Land - consumer lot loans	97,033		96,278		502		—		253		755		0.78
Multi-family	1,423,701		1,422,270		1,431		—		—		1,431		0.10
Commercial real estate	1,570,502		1,566,393		743		—		3,366		4,109		0.26
Commercial & industrial	1,230,888		1,221,571		311		—		9,006		9,317		0.76
HELOC	139,203		137,982		388		229		604		1,221		0.88
Consumer	156,002		155,749		91		16		146		253		0.16
Total Loans	$	12,077,615	$	12,029,102	$	13,636	$	3,393	$	31,484	$	48,513	0.40	%
Delinquency %			99.60%		0.11%		0.03%		0.26%		0.40%



September 30, 2018	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		% based on $
	(In thousands, except ratio data)
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%

The percentage of total delinquent loans was 0.40% as of March 31, 2019 and 0.42% as of September 30, 2018. 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 restructured in a troubled debt restructuring ("TDR") during the periods presented:



	Three Months Ended March 31,
	2019					2018
		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	2	$	39	$	39	12	$	2,183	$	2,183
Land - consumer lot loans	1	40		40		—	—		—
	3	$	79	$	79	12	$	2,183	$	2,183



	Six Months Ended March 31,
	2019					2018
		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	3	$	323	$	323	20	$	4,195	$	4,195
Land - consumer lot loans	1	40		40		—	—		—
Commercial & Industrial	—	—		—		3	7,256		7,256
	4	$	363	$	363	23	$	11,451	$	11,451

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 March 31,
	2019			2018
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	($ in thousands)			($ in thousands)
Trouble Debt Restructurings That Subsequently Defaulted:
Single-family residential	4	$	755	1	$	162
	4	$	755	1	$	162



	Six Months Ended March 31,
	2019			2018
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	($ in thousands)			($ in thousands)
Trouble Debt Restructurings That Subsequently Defaulted:
Single-family residential	5	$	1,298	2	$	206
	5	$	1,298	2	$	206

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, 2019, 96.9% of the Company's $140,599,000 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, 2019, single-family residential loans comprised 89.8% 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.