Loans Receivable

3 Months Ended

Dec. 31, 2019

The following table is a summary of loans receivable.


	December 31, 2019						September 30, 2019
	(In thousands)						(In thousands)
Gross loans by category
Single-family residential	$	5,702,071	42.5	%	$	5,835,194	43.8	%
Construction	2,174,313		16.2		2,038,052		15.3
Construction - custom	538,234		4.0		540,741		4.1
Land - acquisition & development	203,043		1.5		204,107		1.5
Land - consumer lot loans	97,097		0.7		99,694		0.7
Multi-family	1,436,715		10.7		1,422,674		10.7
Commercial real estate	1,643,099		12.3		1,631,170		12.3
Commercial & industrial	1,352,738		10.1		1,268,695		9.5
HELOC	141,274		1.1		142,178		1.1
Consumer	115,829		0.9		129,883		1.0
Total gross loans	13,404,413		100	%	13,312,388		100	%
Less:
Allowance for loan losses	132,513				131,534
Loans in process	1,312,282				1,201,341
Net deferred fees, costs and discounts	54,757				48,938
Total loan contra accounts	1,499,552				1,381,813
Net loans	$	11,904,861			$	11,930,575

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


	December 31, 2019								September 30, 2019
	(In thousands, except ratio data)
Non-accrual loans:
Single-family residential	$	23,014		76.5	%	$	25,271		74.9	%


Land - acquisition & development	86			0.3		169			0.5
Land - consumer lot loans	334			1.1		246			0.7

Commercial real estate	5,557			18.5		5,835			17.3
Commercial & industrial	467			1.5		1,292			3.8
HELOC	630			2.1		907			2.7
Consumer	1			0.0		11			0.0
Total non-accrual loans	$	30,089		100	%	$	33,731		100	%
% of total net loans	0.25		%			0.28		%

The Company recognized interest income on non-accrual loans of approximately $497,000 in the three months ended December 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 $353,000 for the three months ended December 31, 2019. Recognized interest income for the three months ended December 31, 2019 was higher than what otherwise would have been recognized 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.


December 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
	(In thousands, except ratio data)
Single-family residential	$	5,702,058	$	5,675,672	$	6,077	$	3,718	$	16,591	$	26,386	0.46	%
Construction	1,189,457		1,188,042		—		1,415		—		1,415		0.12
Construction - custom	259,944		259,944		—		—		—		—		—
Land - acquisition & development	153,942		153,056		810		76		—		886		0.58
Land - consumer lot loans	97,097		96,635		180		136		146		462		0.48
Multi-family	1,436,693		1,436,556		137		—		—		137		0.01
Commercial real estate	1,643,099		1,638,407		602		60		4,030		4,692		0.29
Commercial & industrial	1,352,738		1,352,449		223		10		56		289		0.02
HELOC	141,274		139,892		530		427		425		1,382		0.98
Consumer	115,829		115,248		294		184		103		581		0.50
Total Loans	$	12,092,131	$	12,055,901	$	8,853	$	6,026	$	21,351	$	36,230	0.30	%
Delinquency %			99.70%		0.07%		0.05%		0.18%		0.30%


September 30, 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
	(In thousands, except ratio data)
Single-family residential	$	5,835,186	$	5,809,239	$	3,672	$	3,211	$	19,064	$	25,947	0.44	%
Construction	1,164,889		1,164,889		—		—		—		—		—
Construction - custom	255,505		255,505		—		—		—		—		—
Land - acquisition & development	161,194		161,194		—		—		—		—		—
Land - consumer lot loans	99,694		98,916		112		619		47		778		0.78
Multi-family	1,422,652		1,422,652		—		—		—		—		—
Commercial real estate	1,631,171		1,625,509		1,614		285		3,763		5,662		0.35
Commercial & industrial	1,268,695		1,267,828		—		—		867		867		0.07
HELOC	142,178		140,718		580		183		697		1,460		1.03
Consumer	129,883		129,227		295		117		244		656		0.51
Total Loans	$	12,111,047	$	12,075,677	$	6,273	$	4,415	$	24,682	$	35,370	0.29	%
Delinquency %			99.71%		0.05%		0.04%		0.20%		0.29%

There are no loans greater than 90 days delinquent and still accruing interest as of either date.

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, 2019, 96.0% of the Company's $110,835,000 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, 2019, single-family residential loans comprised 92.2% 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.