Loans Receivable And Allowance For Loan Losses

12 Months Ended

Sep. 30, 2015

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loans Receivable And Allowance For Loan Losses

Loans Receivable and Allowance for Loan Losses

Loans receivable and loans held for sale by portfolio segment consisted of the following at September 30, 2015 and 2014 (dollars in thousands):



	2015		2014
Mortgage loans:
One- to four-family	$	116,664	$	97,635
Multi-family	52,322		46,206
Commercial	291,216		294,354
Construction – custom and owner/builder	62,954		59,752
Construction – speculative one- to four-family	6,668		2,577
Construction – commercial	20,728		3,310
Construction – multi-family	20,570		2,840
Land	26,140		29,589
Total mortgage loans	597,262		536,263
Consumer loans:
Home equity and second mortgage	34,157		34,921
Other	4,669		4,699
Total consumer loans	38,826		39,620

Commercial business loans	33,763		30,559
Total loans receivable	669,851		606,442
Less:
Undisbursed portion of construction loans in process	53,457		29,416
Deferred loan origination fees	2,193		1,746
Allowance for loan losses	9,924		10,427
	65,574		41,589
Loans receivable, net	604,277		564,853
Loans held for sale (one- to four-family)	3,051		899
Total loans receivable and loans held for sale, net	$	607,328	$	565,752

Certain related parties of the Company, principally Bank directors and officers, are loan customers of the Bank in the ordinary course of business. Such related party loans were performing according to their repayment terms at September 30, 2015 and 2014. Activity in related party loans during the years ended September 30, 2015, 2014 and 2013 was as follows (dollars in thousands):



	2015			2014			2013
Balance, beginning of year	$	927		$	1,095		$	1,113
New loans or advances	112			40			276
Repayments and reclassifications	(409		)	(208		)	(294		)
Balance, end of year	$	630		$	927		$	1,095

Loan Segment Risk Characteristics

The Company believes that its loan classes are the same as its loan segments.

One- To Four-Family Residential Lending: The Company originates both fixed-rate and adjustable-rate loans secured by one- to four-family residences. A portion of the fixed-rate one- to four-family loans are sold in the secondary market for asset/liability management purposes and to generate non-interest income. The Company’s lending policies generally limit the maximum loan-to-value on one- to four-family loans to 90% of the lesser of the appraised value or the purchase price. However, the Company usually obtains private mortgage insurance on the portion of the principal amount that exceeds 80% of the appraised value of the property.

Multi-Family Lending: The Company originates loans secured by multi-family dwelling units (more than four units). Multi-family lending generally affords the Company an opportunity to receive interest at rates higher than those generally available from one- to four-family residential lending. However, loans secured by multi-family properties usually are greater in amount, more difficult to evaluate and monitor and, therefore, involve a greater degree of risk than one- to four-family residential mortgage loans. Because payments on loans secured by multi-family properties are often dependent on the successful operation and management of the properties, repayment of such loans may be affected by adverse conditions in the real estate market or economy. The Company attempts to minimize these risks by scrutinizing the financial condition of the borrower, the quality of the collateral and the management of the property securing the loan.

Commercial Mortgage Lending: The Company originates commercial real estate loans secured by properties such as office buildings, retail/wholesale facilities, motels, restaurants, mini-storage facilities and other commercial properties. Commercial real estate lending generally affords the Company an opportunity to receive interest at higher rates than those available from one- to four-family residential lending. However, loans secured by such properties usually are greater in amount, more difficult to evaluate and monitor and, therefore, involve a greater degree of risk than one- to four-family residential mortgage loans. Because payments on loans secured by commercial properties are often dependent on the successful operation and management of the properties, repayment of these loans may be affected by adverse conditions in the real estate market or economy. The Company attempts to mitigate these risks by generally limiting the maximum loan-to-value ratio to 80% and scrutinizing the financial condition of the borrower, the quality of the collateral and the management of the property securing the loan.

Construction Lending: The Company currently originates the following types of construction loans: custom construction loans, owner/builder construction loans, speculative construction loans (on a limited basis), commercial real estate construction loans and multi-family construction loans. The Company is not currently originating land development loans.

Construction lending affords the Company the opportunity to achieve higher interest rates and fees with shorter terms to maturity than does its single-family permanent mortgage lending. Construction lending, however, is generally considered to involve a higher degree of risk than one-to four family residential lending because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost of the project. The nature of these loans is such that they are generally more difficult to evaluate and monitor. If the estimated cost of construction proves to be inaccurate, the Company may be required to advance funds beyond the amount originally committed to complete the project. If the estimate of value upon completion proves to be inaccurate, the Company may be confronted with a project whose value is insufficient to assure full repayment, and the Company may incur a loss. Projects may also be jeopardized by disagreements between borrowers and builders and by the failure of builders to pay subcontractors. Loans to construct homes for which no purchaser has been identified carry more risk because the payoff for the loan depends on the builder’s ability to sell the property prior to the time that the construction loan is due. The Company attempts to mitigate these risks by adhering to its underwriting policies, disbursement procedures and monitoring practices.

Construction Lending – Custom and Owner/Builder: Custom construction loans are made to home builders who, at the time of construction, have a signed contract with a home buyer who has a commitment to purchase the finished home. Owner/builder construction loans are originated to home owners rather than home builders and are typically refinanced into permanent loans at the completion of construction.

Construction Lending – Speculative One- To Four-Family: Speculative one-to four-family construction loans are made to home builders and are termed “speculative” because the home builder does not have, at the time of the loan origination, a signed contract with a home buyer who has a commitment for permanent financing with the Company or another lender for the finished home. The home buyer may be identified either during or after the construction period. The Company is currently originating speculative one-to four-family construction loans on a limited basis.

Construction Lending – Commercial: Commercial construction loans are originated to construct properties such as office buildings, hotels, retail rental space and mini-storage facilities.

Construction Lending – Multi-Family: Multi-family construction loans are originated to construct apartment buildings and condominium projects.

Construction Lending – Land Development: The Company historically originated loans to real estate developers for the purpose of developing residential subdivisions. The Company is not currently originating any land development loans.

Land Lending: The Company has historically originated loans for the acquisition of land upon which the purchaser can then build or make improvements necessary to build or to sell as improved lots. Currently, the Company is originating new land loans on a limited basis. Loans secured by undeveloped land or improved lots involve greater risks than one- to four-family residential mortgage loans because these loans are more difficult to evaluate. If the estimate of value proves to be inaccurate, in the event of default or foreclosure, the Company may be confronted with a property value which is insufficient to assure full repayment. The Company attempts to minimize this risk by generally limiting the maximum loan-to-value ratio on land loans to 75%.

Consumer Lending – Home Equity and Second Mortgages: The Company originates home equity lines of credit and second mortgage loans. Home equity lines of credit and second mortgage loans have a greater credit risk than one- to four-family residential mortgage loans because they are secured by mortgages subordinated to the existing first mortgage on the property, which may or may not be held by the Company. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the collateral and the credit-worthiness of the borrower.

Consumer Lending – Other: The Company originates other consumer loans, which include automobile loans, boat loans, motorcycle loans, recreational vehicle loans, savings account loans and unsecured loans. Other consumer loans generally have shorter terms to maturity than mortgage loans. Other consumer loans generally involve a greater degree of risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by rapidly depreciating assets such as automobiles. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the credit-worthiness of the borrower.

Commercial Business Lending: The Company originates commercial business loans which are generally secured by business equipment, accounts receivable, inventory or other property. The Company also generally obtains personal guarantees from the business owners based on a review of personal financial statements. Commercial business lending generally involves risks that are different from those associated with residential and commercial real estate lending. Real estate lending is generally considered to be collateral based lending with loan amounts based on predetermined loan to collateral values, and liquidation of the underlying real estate collateral is viewed as the primary source of repayment in the event of borrower default. Although commercial business loans are often collateralized by equipment, inventory, accounts receivable or other business assets, the liquidation of collateral in the event of a borrower default is often an insufficient source of repayment, because accounts receivable may be uncollectible and inventories and equipment may be obsolete or of limited use. Accordingly, the repayment of a commercial business loan depends primarily on the credit-worthiness of the borrower (and any guarantors), while the liquidation of collateral is a secondary and potentially insufficient source of repayment. The Company attempts to mitigate

these risks by adhering to its underwriting policies in evaluating the management of the business and the credit-worthiness of the borrowers and the guarantors.

Allowance for Loan Losses

The following table sets forth information for the year ended September 30, 2015 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):



	Beginning Allowance		Provision for (Recapture of)			Charge- offs			Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	1,650	$	(214	)	$	(220	)	$	264	$	1,480
Multi-family	387		2			—			3		392
Commercial	4,836		(775		)	—			4		4,065
Construction – custom and owner/builder	450		1			—			—		451
Construction – speculative one- to four-family	52		69			—			2		123
Construction – commercial	78		348			—			—		426
Construction – multi-family	25		(867		)	—			1,125		283
Land	1,434		(305		)	(145		)	37		1,021
Consumer loans:
Home equity and second mortgage	879		242			(50		)	2		1,073
Other	176		16			(9		)	4		187
Commercial business loans	460		(42		)	—			5		423
Total	$	10,427	$	(1,525	)	$	(424	)	$	1,446	$	9,924

The following table sets forth information for the year ended September 30, 2014 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):



	Beginning Allowance		Provision for (Recapture of)			Charge- offs			Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	1,449	$	1,113		$	(1,106	)	$	194	$	1,650
Multi-family	749		(362		)	—			—		387
Commercial	5,275		20			(463		)	4		4,836
Construction – custom and owner/builder	262		188			—			—		450
Construction – speculative one- to four-family	96		(44		)	—			—		52
Construction – commercial	56		22			—			—		78
Construction – multi-family	—		(226		)	—			251		25
Construction – land development	—		(287		)	—			287		—
Land	1,940		(664		)	(260		)	418		1,434
Consumer loans:
Home equity and second mortgage	782		137			(47		)	7		879
Other	200		(20		)	(6		)	2		176
Commercial business loans	327		123			(14		)	24		460
Total	$	11,136	$	—		$	(1,896	)	$	1,187	$	10,427

The following table sets forth information for the year ended September 30, 2013 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):



	Beginning Allowance		Provision for (Recapture of)			Charge- offs			Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	1,558	$	565		$	(769	)	$	95	$	1,449
Multi-family	1,156		(407		)	—			—		749
Commercial	4,247		1,640			(667		)	55		5,275
Construction – custom and owner/builder	386		(124		)	(26		)	26		262
Construction – speculative one- to four-family	128		(32		)	—			—		96
Construction – commercial	429		(373		)	—			—		56
Construction – multi-family	—		116			(116		)	—		—
Construction – land development	—		(129		)	(17		)	146		—
Land	2,392		1,801			(2,307		)	54		1,940
Consumer loans:
Home equity and second mortgage	759		202			(184		)	5		782
Other	254		(40		)	(14		)	—		200
Commercial business loans	516		(294		)	—			105		327
Total	$	11,825	$	2,925		$	(4,100	)	$	486	$	11,136

The following table presents information on the loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at September 30, 2015 (dollars in thousands):



	Allowance for Loan Losses						Recorded Investment in Loans
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Mortgage loans:
One- to four-family	$	307	$	1,173	$	1,480	$	4,291	$	115,424	$	119,715
Multi-family	16		376		392		4,037		48,285		52,322
Commercial	265		3,800		4,065		12,852		278,364		291,216
Construction – custom and owner/ builder	—		451		451		—		36,192		36,192
Construction – speculative one- to four-family	—		123		123		—		3,781		3,781
Construction – commercial	—		426		426		—		12,200		12,200
Construction – multi-family	—		283		283		—		5,290		5,290
Land	37		984		1,021		2,305		23,835		26,140
Consumer loans:
Home equity and second mortgage	362		711		1,073		910		33,247		34,157
Other	24		163		187		36		4,633		4,669
Commercial business loans	—		423		423		—		33,763		33,763
Total	$	1,011	$	8,913	$	9,924	$	24,431	$	595,014	$	619,445



	Allowance for Loan Losses						Recorded Investment in Loans
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Mortgage loans:
One- to four-family	$	709	$	941	$	1,650	$	7,011	$	91,523	$	98,534
Multi-family	39		348		387		3,317		42,889		46,206
Commercial	797		4,039		4,836		17,188		277,166		294,354
Construction – custom and owner/ builder	—		450		450		—		34,553		34,553
Construction – speculative one- to four-family	—		52		52		—		1,204		1,204
Construction – commercial	—		78		78		—		2,887		2,887
Construction – multi-family	—		25		25		—		419		419
Land	300		1,134		1,434		5,158		24,431		29,589
Consumer loans:
Home equity and second mortgage	162		717		879		797		34,124		34,921
Other	—		176		176		3		4,696		4,699
Commercial business loans	—		460		460		—		30,559		30,559
Total	$	2,007	$	8,420	$	10,427	$	33,474	$	544,451	$	577,925

The following table presents an age analysis of past due status of loans by portfolio segment at September 30, 2015 (dollars in thousands):



	30–59 Days Past Due		60-89 Days Past Due		Non- Accrual(1)		Past Due 90 Days or More and Still Accruing		Total Past Due		Current		Total Loans
Mortgage loans:
One- to four-family	$	—	$	425	$	2,368	$	—	$	2,793	$	116,922	$	119,715
Multi-family	—		—		760		—		760		51,562		52,322
Commercial	—		—		1,016		—		1,016		290,200		291,216
Construction – custom and owner/ builder	—		345		—		—		345		35,847		36,192
Construction – speculative one- to four-family	—		—		—		—		—		3,781		3,781
Construction – commercial	—		—		—		—		—		12,200		12,200
Construction – multi-family	—		—		—		—		—		5,290		5,290
Land	15		32		1,558		—		1,605		24,535		26,140
Consumer loans:
Home equity and second mortgage	146		14		303		151		614		33,543		34,157
Other	—		—		35		—		35		4,634		4,669
Commercial business loans	—		—		—		—		—		33,763		33,763
Total	$	161	$	816	$	6,040	$	151	$	7,168	$	612,277	$	619,445

__________________


(1)	Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual.

The following table presents an age analysis of past due status of loans by portfolio segment at September 30, 2014 (dollars in thousands):



	30–59 Days Past Due		60-89 Days Past Due		Non- Accrual(1)		Past Due 90 Days or More and Still Accruing		Total Past Due		Current		Total Loans
Mortgage loans:
One- to four-family	$	—	$	577	$	4,376	$	—	$	4,953	$	93,581	$	98,534
Multi-family	—		—		—		—		—		46,206		46,206
Commercial	—		695		1,468		812		2,975		291,379		294,354
Construction – custom and owner/ builder	—		156		—		—		156		34,397		34,553
Construction – speculative one- to four-family	—		—		—		—		—		1,204		1,204
Construction – commercial	—		—		—		—		—		2,887		2,887
Construction – multi-family	—		—		—		—		—		419		419
Land	357		27		4,564		—		4,948		24,641		29,589
Consumer loans:
Home equity and second mortgage	62		44		498		—		604		34,317		34,921
Other	42		—		3		—		45		4,654		4,699
Commercial business loans	21		—		—		—		21		30,538		30,559
Total	$	482	$	1,499	$	10,909	$	812	$	13,702	$	564,223	$	577,925

___________________

(1) Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual.

Credit Quality Indicators

The Company uses credit risk grades which reflect the Company’s assessment of a loan’s risk or loss potential. The Company categorizes loans into risk grade categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors such as the estimated fair value of the collateral. The Company uses the following definitions for credit risk ratings as part of the on-going monitoring of the credit quality of its loan portfolio:

Pass: Pass loans are defined as those loans that meet acceptable quality underwriting standards.

Watch: Watch loans are defined as those loans that still exhibit acceptable quality but have some concerns that justify greater attention. If these concerns are not corrected, a potential for further adverse categorization exists. These concerns could relate to a specific condition peculiar to the borrower, its industry segment or the general economic environment.

Special Mention: Special mention loans are defined as those loans deemed by management to have some potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the payment prospects of the loan. Assets in this category do not expose the Company to sufficient risk to warrant a substandard classification.

Substandard: Substandard loans are defined as those loans that are inadequately protected by the current net worth and paying capacity of the obligor, or of the collateral pledged. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. If the weakness or weaknesses are not corrected, there is the distinct possibility that some loss will be sustained.

Loss: Loans in this classification are considered uncollectible and of such little value that continuance as an asset is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not

practical or desirable to defer writing off this loan even though partial recovery may be realized in the future. At September 30, 2015 and 2014, there were no loans classified as loss.

The following table lists the loan credit risk grades utilized by the Company as credit quality indicators, by portfolio segment, at September 30, 2015 (dollars in thousands).



	Loan Grades
	Pass		Watch		Special Mention		Substandard		Total
Mortgage loans:
One- to four-family	$	114,402	$	653	$	1,339	$	3,321	$	119,715
Multi-family	45,249		—		6,313		760		52,322
Commercial	270,685		8,040		6,803		5,688		291,216
Construction – custom and owner / builder	36,192		—		—		—		36,192
Construction – speculative one- to four-family	3,781		—		—		—		3,781
Construction – commercial	12,200		—		—		—		12,200
Construction – multi-family	5,290		—		—		—		5,290
Land	20,964		1,105		2,078		1,993		26,140
Consumer loans:
Home equity and second mortgage	32,172		664		404		917		34,157
Other	4,631		—		—		38		4,669
Commercial business loans	33,635		49		79		—		33,763
Total	$	579,201	$	10,511	$	17,016	$	12,717	$	619,445

The following table lists the loan credit risk grades utilized by the Company as credit quality indicators, by portfolio segment, at September 30, 2014 (dollars in thousands):



	Loan Grades
	Pass		Watch		Special Mention		Substandard		Total
Mortgage loans:
One- to four-family	$	90,340	$	1,749	$	1,045	$	5,400	$	98,534
Multi-family	37,336		1,697		6,410		763		46,206
Commercial	266,467		5,819		15,946		6,122		294,354
Construction – custom and owner / builder	34,553		—		—		—		34,553
Construction – speculative one- to four-family	1,204		—		—		—		1,204
Construction – commercial	2,887		—		—		—		2,887
Construction – multi-family	419		—		—		—		419
Land	21,084		114		3,586		4,805		29,589
Consumer loans:
Home equity and second mortgage	33,207		724		27		963		34,921
Other	4,657		39		—		3		4,699
Commercial business loans	30,355		112		92		—		30,559
Total	$	522,509	$	10,254	$	27,106	$	18,056	$	577,925

The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2015 (dollars in thousands):



	September 30, 2015						For the Year Ended September 30, 2015
	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Income Recognized
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	1,321	$	1,546	$	—	$	1,919	$	25	$	25
Multi-family	760		791		—		570		3		3
Commercial	7,199		8,259		—		9,078		521		412
Construction – custom and owner / builder	—		—		—		118		—		—
Land	1,614		2,150		—		1,028		25		20
Consumer loans:
Home equity and second mortgage	165		381		—		270		—		—
Commercial business loans	—		6		—		—		—		—
Subtotal	11,059		13,133		—		12,983		574		460
With an allowance recorded:
Mortgage loans:
One- to four-family	2,970		2,970		307		3,833		149		112
Multi-family	3,277		3,277		16		3,291		184		137
Commercial	5,653		5,653		265		3,475		202		152
Construction – custom and owner / builder	—		—		—		17		—		—
Land	691		691		37		3,298		32		27
Consumer loans:
Home equity and second mortgage	745		745		362		516		18		15
Other	36		36		24		28		—		—
Subtotal	13,372		13,372		1,011		14,458		585		443
Total:
Mortgage loans:
One- to four-family	4,291		4,516		307		5,752		174		137
Multi-family	4,037		4,068		16		3,861		187		140
Commercial	12,852		13,912		265		12,553		723		564
Construction – custom and owner / builder	—		—		—		135		—		—
Land	2,305		2,841		37		4,326		57		47
Consumer loans:
Home equity and second mortgage	910		1,126		362		786		18		15
Other	36		36		24		28		—		—
Commercial business loans	—		6		—		—		—		—
Total	$	24,431	$	26,505	$	1,011	$	27,441	$	1,159	$	903

The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2014 (dollars in thousands):



	September 30, 2014						For the Year Ended September 30, 2014
	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Income Recognized
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	2,647	$	3,301	$	—	$	3,763	$	—	$	—
Multi-family	—		857		—		—		—		—
Commercial	11,057		14,184		—		7,859		414		325
Construction – multi-family	—		—		—		57		—		—
Construction – land development	—		—		—		141		—		—
Land	1,079		1,674		—		1,044		12		10
Consumer loans:
Home equity and second mortgage	351		574		—		276		—		—
Other	3		3		—		7		—		—
Commercial business loans	—		10		—		22		—		—
Subtotal	15,137		20,603		—		13,169		426		335
With an allowance recorded:
Mortgage loans:
One- to four-family	4,364		4,364		709		4,140		146		110
Multi-family	3,317		3,317		39		4,157		220		165
Commercial	6,131		6,131		797		10,083		541		423
Construction – speculative one- to four-family	—		—		—		275		11		7
Land	4,079		4,079		300		3,780		18		16
Consumer loans:
Home equity and second mortgage	446		446		162		404		16		12
Subtotal	18,337		18,337		2,007		22,839		952		733
Total:
Mortgage loans:
One- to four-family	7,011		7,665		709		7,903		146		110
Multi-family	3,317		4,174		39		4,157		220		165
Commercial	17,188		20,315		797		17,942		955		748
Construction – speculative one- to four-family	—		—		—		275		11		7
Construction – multi-family	—		—		—		57		—		—
Construction – land development	—		—		—		141		—		—
Land	5,158		5,753		300		4,824		30		26
Consumer loans:
Home equity and second mortgage	797		1,020		162		680		16		12
Other	3		3		—		7		—		—
Commercial business loans	—		10		—		22		—		—
Total	$	33,474	$	38,940	$	2,007	$	36,008	$	1,378	$	1,068

The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2013 (dollars in thousands):



	September 30, 2013						For the Year Ended September 30, 2013
	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Income Recognized
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	5,342	$	5,775	$	—	$	2,661	$	18	$	13
Multi-family	—		982		—		473		3		3
Commercial	4,879		8,005		—		8,781		322		267
Construction – custom and owner / builder	—		—		—		97		—		—
Construction – speculative one- to four-family	—		—		—		65		—		—
Construction – multi-family	143		608		—		293		—		—
Construction – land development	515		3,279		—		534		—		—
Land	1,188		2,133		—		3,519		9		8
Consumer loans:
Home equity and second mortgage	380		556		—		266		—		—
Other	6		6		—		8		—		—
Commercial business loans	—		33		—		—		—		—
Subtotal	12,453		21,377		—		16,697		352		291
With an allowance recorded:
Mortgage loans:
One- to four-family	3,642		3,726		600		4,397		91		68
Multi-family	5,184		5,184		334		5,960		301		230
Commercial	14,631		15,297		1,763		9,052		526		420
Construction – custom and owner / builder	—		—		—		60		—		—
Construction – speculative one- to four-family	687		687		88		695		29		16
Land	1,203		1,226		234		1,962		27		27
Consumer loans:
Home equity and second mortgage	299		299		57		352		16		12
Subtotal	25,646		26,419		3,076		22,478		990		773
Total:
Mortgage loans:
One- to four-family	8,984		9,501		600		7,058		109		81
Multi-family	5,184		6,166		334		6,433		304		233
Commercial	19,510		23,302		1,763		17,833		848		687
Construction – custom and owner / builder	—		—		—		157		—		—
Construction – speculative one- to four-family	687		687		88		760		29		16
Construction – multi-family	143		608		—		293		—		—
Construction – land development	515		3,279		—		534		—		—
Land	2,391		3,359		234		5,481		36		35
Consumer loans:
Home equity and second mortgage	679		855		57		618		16		12
Other	6		6		—		8		—		—
Commercial business loans	—		33		—		—		—		—
Total	$	38,099	$	47,796	$	3,076	$	39,175	$	1,342	$	1,064

Troubled debt restructured loans are considered impaired loans and are individually evaluated for impairment. Troubled debt restructured loans can be classified as either accrual or non-accrual. The Company had $13,718,000 in troubled debt restructured loans included in impaired loans at September 30, 2015 and had no commitments to lend additional funds on these loans. The Company had $19,088,000 in troubled debt restructured loans included in impaired loans at September 30, 2014 and had no commitments to lend additional funds on these loans. The allowance for loan losses allocated to troubled debt restructured loans at September 30, 2015 and 2014 was $310,000 and $994,000, respectively.

The following tables set forth information with respect to the Company’s troubled debt restructured loans by interest accrual status as of September 30, 2015 and 2014 (dollars in thousands):



	2015
	Accruing		Non- Accrual		Total
Mortgage loans:
One- to four-family	$	1,929	$	826	$	2,755
Multi-family	3,277		—		3,277
Commercial	6,237		—		6,237
Land	747		255		1,002
Consumer loans:
Home equity and second mortgage	295		152		447
Total	$	12,485	$	1,233	$	13,718



	2014
	Accruing		Non- Accrual		Total
Mortgage loans:
One- to four-family	$	2,634	$	233	$	2,867
Multi-family	3,317		—		3,317
Commercial	9,960		1,468		11,428
Land	594		431		1,025
Consumer loans:
Home equity and second mortgage	299		152		451
Total	$	16,804	$	2,284	$	19,088

The following tables set forth information with respect to the Company’s loans, by portfolio segment, which were modified in troubled debt restructurings during the years ended September 30, 2015, 2014 and 2013 (dollars in thousands):



2015	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		End of Period Balance
One- to four-family (1)	1	$	48	$	48	$	48
Total	1	$	48	$	48	$	48

___________________________

(1) Modification was a result of a reduction in the stated interest rate.



2014	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		End of Period Balance
One-to four-family (1)	1	$	42	$	42	$	42
Land (1)	1	157		157		153
Total	2	$	199	$	199	$	195

_______________________________


(1)	Modifications were a result of a reduction in the stated interest rate.



2013	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		End of Period Balance
One-to four-family (1)	2	$	353	$	353	$	350
Commercial (2)	2	2,327		2,327		2,318
Total	4	$	2,680	$	2,680	$	2,668

_______________________________


(1)	Modifications were a result of a combination of changes (i.e., a reduction in the stated interest rate and an extension of the maturity at an interest rate below current market).


(2)	Modifications were a result of reductions in the stated interest rates.

No troubled debt restructured loans were recorded that subsequently defaulted during the years ended September 30, 2015, 2014 or 2013.

- 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.

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