Allowance for Losses on Loans (Tables)

9 Months Ended

Jun. 30, 2019

Summary of Activity in Allowance for Loan Losses

The following tables summarize the activity in the allowance for loan losses.



Three Months Ended June 30, 2019	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	31,476	$	(65	)	$	47	$	56		$	31,514
Construction	33,396		—			—		661			34,057
Construction - custom	1,976		(339		)	—		247			1,884
Land - acquisition & development	9,734		(65		)	2,025		(2,306		)	9,388
Land - consumer lot loans	2,076		(215		)	—		171			2,032
Multi-family	7,394		—			—		(111		)	7,283
Commercial real estate	12,448		—			90		466			13,004
Commercial & industrial	30,574		(4,034		)	3,218		1,313			31,071
HELOC	1,082		—			1		4			1,087
Consumer	2,930		(34		)	307		(501		)	2,702
	$	133,086	$	(4,752	)	$	5,688	$	—		$	134,022



Three Months Ended June 30, 2018	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	34,144	$	(299	)	$	283	$	273		$	34,401
Construction	27,389		—			—		2,744			30,133
Construction - custom	2,081		—			—		(67		)	2,014
Land - acquisition & development	7,622		(12		)	2,699		(2,609		)	7,700
Land - consumer lot loans	2,853		(1		)	35		20			2,907
Multi-family	7,982		—			—		109			8,091
Commercial real estate	11,588		—			91		(100		)	11,579
Commercial & industrial	29,330		(3,317		)	433		1,069			27,515
HELOC	802		—			—		9			811
Consumer	3,785		(45		)	223		(448		)	3,515
	$	127,576	$	(3,674	)	$	3,764	$	1,000		$	128,666



Nine Months Ended June 30, 2019	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	33,033	$	(238	)	$	586	$	(1,867	)	$	31,514
Construction	31,317		—			—		2,740			34,057
Construction - custom	1,842		(339		)	—		381			1,884
Land - acquisition & development	7,978		(65		)	5,107		(3,632		)	9,388
Land - consumer lot loans	2,164		(336		)	265		(61		)	2,032
Multi-family	8,329		—			—		(1,046		)	7,283
Commercial real estate	11,852		(339		)	860		631			13,004
Commercial & industrial	28,702		(4,499		)	3,276		3,592			31,071
HELOC	781		(1,086		)	45		1,347			1,087
Consumer	3,259		(506		)	784		(835		)	2,702
	$	129,257	$	(7,408	)	$	10,923	$	1,250		$	134,022



Nine Months Ended June 30, 2018	Beginning Allowance		Charge-offs			Recoveries		Provision & Transfers			Ending Allowance
	(In thousands)
Single-family residential	$	36,892	$	(1,049	)	$	615	$	(2,057	)	$	34,401
Construction	24,556		—			—		5,577			30,133
Construction - custom	1,944		(50		)	—		120			2,014
Land - acquisition & development	6,829		(12		)	7,278		(6,395		)	7,700
Land - consumer lot loans	2,649		(67		)	35		290			2,907
Multi-family	7,862		—			—		229			8,091
Commercial real estate	11,818		(36		)	92		(295		)	11,579
Commercial & industrial	28,524		(3,433		)	603		1,821			27,515
HELOC	855		(1		)	—		(43		)	811
Consumer	1,144		(217		)	785		1,803			3,515
	$	123,073	$	(4,865	)	$	9,408	$	1,050		$	128,666

Summary of Loans Collectively and Individually Evaluated for Impairment and Related Allocation of Reserves

The following tables show loans collectively and individually evaluated for impairment and the related allocation of general and specific reserves.



June 30, 2019	Loans Collectively Evaluated for Impairment						Loans Individually Evaluated for Impairment
	Allowance Allocation		Recorded Investment of Loans		Ratio		Allowance Allocation		Recorded Investment of Loans		Ratio
	(In thousands, except ratio data)						(In thousands, except ratio data)
Single-family residential	$	31,514	$	5,861,596	0.5	%	$	—	$	16,107	—	%
Construction	34,057		1,168,667		2.9		—		—		—
Construction - custom	1,884		293,063		0.6		—		1,161		—
Land - acquisition & development	9,371		160,210		5.8		17		173		9.8
Land - consumer lot loans	2,032		90,629		2.2		—		582		—
Multi-family	7,279		1,401,288		0.5		4		1,832		0.2
Commercial real estate	12,772		1,609,208		0.8		232		13,736		1.7
Commercial & industrial	30,993		1,250,289		2.5		78		6,155		1.3
HELOC	1,087		138,269		0.8		—		692		—
Consumer	2,702		142,210		1.9		—		—		—
	$	133,691	$	12,115,429	1.1	%	$	331	$	40,438	0.8	%



September 30, 2018	Loans Collectively Evaluated for Impairment						Loans Individually Evaluated for Impairment
	Allowance Allocation		Recorded Investment of Loans		Ratio		Allowance Allocation		Recorded Investment of Loans		Ratio
	(In thousands, except ratio data)						(In thousands, except ratio data)
Single-family residential	$	33,033	$	5,782,870	0.6	%	$	—	$	21,345	—	%
Construction	31,317		1,060,428		3.0		—		2,427		—
Construction - custom	1,842		289,192		0.6		—		—		—
Land - acquisition & development	7,969		122,639		6.5		9		920		1.0
Land - consumer lot loans	2,164		96,583		2.2		—		507		—
Multi-family	8,325		1,384,655		0.6		4		448		1.0
Commercial real estate	11,702		1,432,791		0.8		150		19,378		0.8
Commercial & industrial	28,348		1,126,438		2.5		354		14,437		2.5
HELOC	781		128,715		0.6		—		1,162		—
Consumer	3,259		173,181		1.9		—		56		—
	$	128,740	$	11,597,492	1.1	%	$	517	$	60,680	0.9	%

Summary of Loans Based on Credit Quality Indicators

The following tables provide information on loans based on risk rating categories as defined above.



June 30, 2019	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands, except ratio data)
Loan type
Single-family residential	$	5,846,169		$	—		$	27,414		$	—		$	—		$	5,873,583
Construction	1,997,236			—			—			—			—			1,997,236
Construction - custom	569,736			—			1,161			—			—			570,897
Land - acquisition & development	199,241			—			3,845			—			—			203,086
Land - consumer lot loans	94,413			—			814			—			—			95,227
Multi-family	1,395,316			—			7,826			—			—			1,403,142
Commercial real estate	1,590,337			2,771			29,835			—			—			1,622,943
Commercial & industrial	1,224,843			4,141			26,139			1,275			—			1,256,398
HELOC	139,112			—			802			—			—			139,914
Consumer	142,317			—			—			—			—			142,317
Total gross loans	$	13,198,720		$	6,912		$	97,836		$	1,275		$	—		$	13,304,743

Total grade as a % of total gross loans	99.20		%	0.05		%	0.74		%	0.01		%	—		%



September 30, 2018	Internally Assigned Grade
	Pass			Special mention			Substandard			Doubtful			Loss			Total Gross Loans
	(In thousands, except ratio data)
Loan type
Single-family residential	$	5,766,096		$	—		$	32,870		$	—		$	—		$	5,798,966
Construction	1,886,304			1,937			2,427			—			—			1,890,668
Construction - custom	624,479			—			—			—			—			624,479
Land - acquisition & development	152,984			—			2,220			—			—			155,204
Land - consumer lot loans	101,249			—			787			—			—			102,036
Multi-family	1,378,803			1,633			4,689			—			—			1,385,125
Commercial real estate	1,421,602			7,114			23,452			—			—			1,452,168
Commercial & industrial	1,093,405			16,513			30,956			—			—			1,140,874
HELOC	130,330			—			522			—			—			130,852
Consumer	173,285			—			21			—			—			173,306
Total gross loans	$	12,728,537		$	27,197		$	97,944		$	—		$	—		$	12,853,678

Total grade as a % of total gross loans	99.03		%	0.21		%	0.76		%	—		%	—		%

The following tables provide information on gross loans based on borrower payment activity.



June 30, 2019	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross Loans		Amount		% of Total Gross Loans
	(In thousands, except ratio data)
Single-family residential	$	5,851,298	99.6	%	$	22,285	0.4	%
Construction	1,997,236		100.0		—		—
Construction - custom	569,736		99.8		1,161		0.2
Land - acquisition & development	202,913		99.9		173		0.1
Land - consumer lot loans	94,586		99.3		641		0.7
Multi-family	1,401,711		99.9		1,431		0.1
Commercial real estate	1,614,479		99.5		8,464		0.5
Commercial & industrial	1,250,351		99.5		6,047		0.5
HELOC	139,111		99.4		803		0.6
Consumer	142,317		100.0		—		—
	$	13,263,738	99.7	%	$	41,005	0.3	%



September 30, 2018	Performing Loans				Non-Performing Loans
	Amount		% of Total Gross Loans		Amount		% of Total Gross Loans
	(In thousands, except ratio data)
Single-family residential	$	5,771,323	99.5	%	$	27,643	0.5	%
Construction	1,888,241		99.9		2,427		0.1
Construction - custom	624,479		100.0		—		—
Land - acquisition & development	154,284		99.4		920		0.6
Land - consumer lot loans	101,249		99.2		787		0.8
Multi-family	1,385,125		100.0		—		—
Commercial real estate	1,443,197		99.4		8,971		0.6
Commercial & industrial	1,126,480		98.7		14,394		1.3
HELOC	130,329		99.6		523		0.4
Consumer	173,285		100.0		21		—
	$	12,797,992	99.6	%	$	55,686	0.4	%

Summary of Impaired Loans Based on Type

The following tables provide information on impaired loan balances and the related allowances by loan types.



June 30, 2019	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment (Year-To-Date)
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	15,045	$	16,340	$	—		$	16,361
Construction	—		—		—			1,465
Construction - custom	1,257		1,257		—			314
Land - acquisition & development	78		143		—			343
Land - consumer lot loans	466		499		—			273
Multi-family	1,431		1,431		—			358
Commercial real estate	8,854		14,320		—			9,245
Commercial & industrial	5,715		9,904		—			8,682
HELOC	692		785		—			537
Consumer	—		35		—			17
	33,538		44,714		—			37,595
Impaired loans with an allowance recorded:
Single-family residential	117,967		120,785		2,165			129,459
Land - acquisition & development	95		153		—			101
Land - consumer lot loans	4,056		4,472		17			4,516
Multi-family	402		402		4			426
Commercial real estate	4,882		6,002		232			5,408
Commercial & industrial	440		529		78			3,063
HELOC	953		966		—			964
Consumer	62		62		—			66
	128,857		133,371		2,496		(1)	144,003
Total impaired loans:
Single-family residential	133,012		137,125		2,165			145,820
Construction	—		—		—			1,465
Construction - custom	1,257		1,257		—			314
Land - acquisition & development	173		296		—			444
Land - consumer lot loans	4,522		4,971		17			4,789
Multi-family	1,833		1,833		4			784
Commercial real estate	13,736		20,322		232			14,653
Commercial & industrial	6,155		10,433		78			11,745
HELOC	1,645		1,751		—			1,501
Consumer	62		97		—			83
	$	162,395	$	178,085	$	2,496	(1)	$	181,598


(1)	Includes $331,000 of specific reserves and $2,165,000 included in the general reserves.



September 30, 2018	Recorded Investment		Unpaid Principal Balance		Related Allowance			Average Recorded Investment (Year-To-Date)
	(In thousands)
Impaired loans with no related allowance recorded:
Single-family residential	$	18,872	$	20,050	$	—		$	20,097
Construction	2,698		2,818		—			1,349
Construction - custom	—		—		—			74
Land - acquisition & development	814		814		—			572
Land - consumer lot loans	311		336		—			260
Multi-family	—		—		—			70
Commercial real estate	9,425		14,035		—			11,158
Commercial & industrial	10,137		10,146		—			9,208
HELOC	410		1,170		—			450
Consumer	20		56		—			54
	42,687		49,425		—			43,292
Impaired loans with an allowance recorded:
Single-family residential	139,796		143,099		2,871			161,729
Land - acquisition & development	107		157		—			39
Land - consumer lot loans	4,916		5,290		9			6,449
Multi-family	448		448		4			471
Commercial real estate	6,254		7,733		150			10,445
Commercial & industrial	4,291		7,506		354			4,495
HELOC	976		984		—			1,395
Consumer	70		70		—			83
	156,858		165,287		3,388		(1)	185,106
Total impaired loans:
Single-family residential	158,668		163,149		2,871			181,826
Construction	2,698		2,818		—			1,349
Construction - custom	—		—		—			74
Land - acquisition & development	921		971		—			611
Land - consumer lot loans	5,227		5,626		9			6,709
Multi-family	448		448		4			541
Commercial real estate	15,679		21,768		150			21,603
Commercial & industrial	14,428		17,652		354			13,703
HELOC	1,386		2,154		—			1,845
Consumer	90		126		—			137
	$	199,545	$	214,712	$	3,388	(1)	$	228,398

(1)

Includes $517,000 of specific reserves and $2,871,000 included in the general reserves.