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Loans Receivable and Allowance for Loan Losses (Tables)
12 Months Ended
Sep. 30, 2017
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Schedule of Loans Receivable and Loans Held for Sale
Loans receivable by portfolio segment consisted of the following at September 30, 2017 and 2016 (dollars in thousands):

 
2017

 
2016

Mortgage loans:
 
 
 
One- to four-family
$
118,147

 
$
118,560

Multi-family
58,607

 
62,303

Commercial
328,927

 
312,525

Construction – custom and owner/builder
117,641

 
93,049

Construction – speculative one- to four-family
9,918

 
8,106

Construction – commercial
19,630

 
9,365

Construction – multi-family
21,327

 
12,590

Land
23,910

 
21,627

     Total mortgage loans
698,107

 
638,125

Consumer loans:
 

 
 

Home equity and second mortgage
38,420

 
39,727

Other
3,823

 
4,139

     Total consumer loans
42,243

 
43,866

 
 
 
 
Commercial business loans
44,444

 
41,837

      Total loans receivable
784,794

 
723,828

Less:
 

 
 

Undisbursed portion of construction loans in process
82,411

 
48,627

Deferred loan origination fees, net
2,466

 
2,229

Allowance for loan losses
9,553

 
9,826

 
94,430

 
60,682

Loans receivable, net
$
690,364

 
$
663,146

Schedule of Activity in Related Party Loans
Activity in related party loans during the years ended September 30, 2017, 2016 and 2015 was as follows (dollars in thousands):
 
2017

 
2016

 
2015

Balance, beginning of year
$
230

 
$
630

 
$
927

New loans or borrowings
592

 
66

 
112

Repayments and reclassifications
(81
)
 
(466
)
 
(409
)
Balance, end of year
$
741

 
$
230

 
$
630

Schedule of Allowance for Loan Losses
The following table sets forth information for the year ended September 30, 2017 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):

 
Beginning
Allowance
 
Provision for (Recapture of) Loan Losses
 
Charge-
offs
 
Recoveries
 
Ending
Allowance
Mortgage loans:
 
 
 
 
 
 
 
 
 
  One- to four-family
$
1,239

 
$
(178
)
 
$

 
$
21

 
$
1,082

  Multi-family
473

 
(26
)
 

 

 
447

  Commercial
4,384

 
(1,248
)
 
(13
)
 
1,061

 
4,184

  Construction – custom and owner/builder
619

 
80

 

 

 
699

  Construction – speculative one- to four-family
130

 
(8
)
 

 
6

 
128

  Construction – commercial
268

 
35

 

 

 
303

  Construction – multi-family
316

 
(143
)
 

 

 
173

  Land
820

 
189

 
(110
)
 
19

 
918

Consumer loans:
 

 


 
 

 
 

 
 

  Home equity and second mortgage
939

 
44

 

 

 
983

  Other
156

 
(28
)
 
(10
)
 
3

 
121

Commercial business loans
482

 
33

 

 

 
515

   Total
$
9,826

 
$
(1,250
)
 
$
(133
)
 
$
1,110

 
$
9,553


The following table sets forth information for the year ended September 30, 2016 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):

 
Beginning
Allowance
 
Provision for (Recapture of) Loan Losses
 
Charge-
offs
 
Recoveries
 
Ending
Allowance
Mortgage loans:
 
 
 
 
 
 
 
 
 
  One- to four-family
$
1,480

 
$
(225
)
 
$
(72
)
 
$
56

 
$
1,239

  Multi-family
392

 
81

 

 

 
473

  Commercial
4,065

 
528

 
(209
)
 

 
4,384

  Construction – custom and owner/builder
451

 
168

 

 

 
619

  Construction – speculative one- to four-family
123

 
5

 

 
2

 
130

  Construction – commercial
426

 
(158
)
 

 

 
268

  Construction – multi-family
283

 
(148
)
 

 
181

 
316

  Land
1,021

 
(164
)
 
(61
)
 
24

 
820

Consumer loans:
 

 
 

 
 

 
 

 
 

  Home equity and second mortgage
1,073

 
(116
)
 
(18
)
 

 
939

  Other
187

 
(25
)
 
(8
)
 
2

 
156

Commercial business loans
423

 
54

 

 
5

 
482

   Total
$
9,924

 
$

 
$
(368
)
 
$
270

 
$
9,826





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) Loan Losses
 
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

Schedule of Loans Evaluated Individually for Impairment and Collectively Evaluated for Impairment in the Allowance for Loan Losses
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, 2017 (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
$

 
$
1,082

 
$
1,082

 
$
1,443

 
$
116,704

 
$
118,147

Multi-family

 
447

 
447

 

 
58,607

 
58,607

Commercial
26

 
4,158

 
4,184

 
3,873

 
325,054

 
328,927

Construction – custom and owner/ builder

 
699

 
699

 

 
63,538

 
63,538

Construction – speculative one- to four-family

 
128

 
128

 

 
4,639

 
4,639

Construction – commercial

 
303

 
303

 

 
11,016

 
11,016

Construction –  multi-family

 
173

 
173

 

 
6,912

 
6,912

Land
125

 
793

 
918

 
1,119

 
22,791

 
23,910

Consumer loans:
 

 


 
 

 


 


 
 

Home equity and second mortgage
325

 
658

 
983

 
557

 
37,863

 
38,420

Other

 
121

 
121

 

 
3,823

 
3,823

Commercial business loans

 
515

 
515

 

 
44,444

 
44,444

     Total
$
476

 
$
9,077

 
$
9,553

 
$
6,992

 
$
695,391

 
$
702,383


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, 2016 (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
$
70

 
$
1,169

 
$
1,239

 
$
2,264

 
$
116,296

 
$
118,560

Multi-family

 
473

 
473

 

 
62,303

 
62,303

Commercial
413

 
3,971

 
4,384

 
11,309

 
301,216

 
312,525

Construction – custom and owner/ builder

 
619

 
619

 
367

 
51,662

 
52,029

Construction – speculative one- to four-family

 
130

 
130

 

 
4,074

 
4,074

Construction – commercial

 
268

 
268

 

 
6,841

 
6,841

Construction –  multi-family

 
316

 
316

 

 
11,539

 
11,539

Land
53

 
767

 
820

 
1,268

 
20,359

 
21,627

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 

Home equity and second mortgage
227

 
712

 
939

 
999

 
38,728

 
39,727

Other
13

 
143

 
156

 
30

 
4,109

 
4,139

Commercial business loans

 
482

 
482

 

 
41,837

 
41,837

     Total
$
776

 
$
9,050

 
$
9,826

 
$
16,237

 
$
658,964

 
$
675,201

Past Due Status of Loans Receivable
The following table presents an analysis of loans by aging category and portfolio segment at September 30, 2017 (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
$
193

 
$

 
$
874

 
$

 
$
1,067

 
$
117,080

 
$
118,147

Multi-family

 

 

 

 

 
58,607

 
58,607

Commercial

 
107

 
213

 

 
320

 
328,607

 
328,927

Construction – custom and owner/ builder

 

 

 

 

 
63,538

 
63,538

Construction – speculative one- to four-family

 

 

 

 

 
4,639

 
4,639

Construction – commercial

 

 

 

 

 
11,016

 
11,016

Construction –  multi-family

 

 

 

 

 
6,912

 
6,912

Land

 

 
566

 

 
566

 
23,344

 
23,910

Consumer loans:
 

 
 

 
 

 
 

 
 

 


 


Home equity and second mortgage
56

 

 
258

 

 
314

 
38,106

 
38,420

Other
36

 

 

 

 
36

 
3,787

 
3,823

Commercial business loans
110

 

 

 

 
110

 
44,334

 
44,444

   Total
$
395

 
$
107

 
$
1,911

 
$

 
$
2,413

 
$
699,970

 
$
702,383

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

The following table presents an analysis of loans by aging category and portfolio segment at September 30, 2016 (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
$

 
$
207

 
$
914

 
$

 
$
1,121

 
$
117,439

 
$
118,560

Multi-family

 

 

 

 

 
62,303

 
62,303

Commercial
113

 

 
612

 

 
725

 
311,800

 
312,525

Construction – custom and owner/ builder

 

 
367

 

 
367

 
51,662

 
52,029

Construction – speculative one- to four-family

 

 

 

 

 
4,074

 
4,074

Construction – commercial

 

 

 

 

 
6,841

 
6,841

Construction –  multi-family

 

 

 

 

 
11,539

 
11,539

Land

 

 
548

 

 
548

 
21,079

 
21,627

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 
 
 

Home equity and second mortgage
37

 

 
402

 
135

 
574

 
39,153

 
39,727

Other
31

 

 
30

 

 
61

 
4,078

 
4,139

Commercial business loans
37

 
38

 

 

 
75

 
41,762

 
41,837

   Total
$
218

 
$
245

 
$
2,873

 
$
135

 
$
3,471

 
$
671,730

 
$
675,201

___________________
(1)     Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual.
Financing Receivable Credit Quality Indicators
The following table presents an analysis of loans by credit quality indicators and portfolio segment, at September 30, 2017 (dollars in thousands).
 
Loan Grades
 
Pass
 
Watch
 
Special Mention
 
Substandard
 
Total
Mortgage loans:
 
 
 
 
 
 
 
 
 
One- to four-family
$
115,481

 
$
422

 
$
644

 
$
1,600

 
$
118,147

Multi-family
56,857

 

 
1,750

 

 
58,607

Commercial
318,717

 
6,059

 
3,540

 
611

 
328,927

Construction – custom and owner / builder
63,210

 
328

 

 

 
63,538

Construction – speculative one- to four-family
4,639

 

 

 

 
4,639

Construction – commercial
11,016

 

 

 

 
11,016

Construction – multi-family
6,912

 

 

 

 
6,912

Land
20,528

 
1,022

 
1,794

 
566

 
23,910

Consumer loans:
 

 
 

 
 

 
 

 
 

Home equity and second mortgage
37,828

 
152

 

 
440

 
38,420

Other
3,787

 

 

 
36

 
3,823

Commercial business loans
43,416

 
973

 
55

 

 
44,444

        Total
$
682,391

 
$
8,956

 
$
7,783

 
$
3,253

 
$
702,383






The following table presents an analysis of loans by credit quality indicators and portfolio segment, at September 30, 2016 (dollars in thousands):
 
Loan Grades
 
Pass
 
Watch
 
Special Mention
 
Substandard
 
Total
Mortgage loans:
 
 
 
 
 
 
 
 
 
One- to four-family
$
115,131

 
$
364

 
$
661

 
$
2,404

 
$
118,560

Multi-family
60,504

 

 
1,799

 

 
62,303

Commercial
292,756

 
8,411

 
10,746

 
612

 
312,525

Construction – custom and owner / builder
51,432

 
229

 

 
368

 
52,029

Construction – speculative one- to four-family
4,074

 

 

 

 
4,074

Construction – commercial
6,841

 

 

 

 
6,841

Construction – multi-family
11,539

 

 

 

 
11,539

Land
18,010

 
1,043

 
1,859

 
715

 
21,627

Consumer loans:
 

 
 

 
 

 
 

 
 

Home equity and second mortgage
38,261

 
590

 

 
876

 
39,727

Other
4,078

 

 

 
61

 
4,139

Commercial business loans
41,797

 
40

 

 

 
41,837

        Total
$
644,423

 
$
10,677

 
$
15,065

 
$
5,036

 
$
675,201

Impaired Financing Receivables
The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2017 (dollars in thousands):
 
September 30, 2017
 
For the Year Ended September 30, 2017
 
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
$
1,443

 
$
1,589

 
$

 
$
1,108

 
$
68

 
$
62

Commercial
1,967

 
1,967

 

 
3,901

 
188

 
143

Construction – custom and owner / builder

 

 

 
147

 
7

 
7

Land
297

 
410

 

 
512

 
8

 
6

Consumer loans:
 
 
 

 
 
 
 

 
 

 
 

Home equity and second mortgage
123

 
123

 

 
284

 

 

Commercial business loans

 

 

 
11

 

 

        Subtotal
3,830

 
4,089

 

 
5,963

 
271

 
218

With an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 

Mortgage loans:
 

 
 

 
 

 
 

 
 

 
 

One- to four-family

 

 

 
721

 
50

 
38

Commercial
1,906

 
1,906

 
26

 
3,326

 
182

 
144

Land
822

 
881

 
125

 
666

 
35

 
29

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 

Home equity and second mortgage
434

 
434

 
325

 
530

 
29

 
26

      Other

 

 

 
17

 

 

       Subtotal
3,162

 
3,221

 
476

 
5,260

 
296

 
237

Total:
 

 
 

 
 

 
 

 
 

 
 

Mortgage loans:
 

 
 

 
 

 
 

 
 

 
 

One- to four-family
1,443

 
1,589

 

 
1,829

 
118

 
100

Commercial
3,873

 
3,873

 
26

 
7,227

 
370

 
287

Construction – custom and owner / builder

 

 

 
147

 
7

 
7

Land
1,119

 
1,291

 
125

 
1,178

 
43

 
35

Consumer loans:
 

 
 

 
 
 
 

 
 

 
 

Home equity and second mortgage
557

 
557

 
325

 
814

 
29

 
26

Other

 

 

 
17

 

 

Commercial business loans

 

 

 
11

 

 

     Total
$
6,992

 
$
7,310

 
$
476

 
$
11,223

 
$
567

 
$
455


The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2016 (dollars in thousands):
 
September 30, 2016
 
For the Year Ended September 30, 2016
 
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
$
914

 
$
1,060

 
$

 
$
1,349

 
$
38

 
$
38

Multi-family

 

 

 
152

 

 

Commercial
7,566

 
8,685

 

 
7,784

 
421

 
330

Construction – custom and owner / builder
367

 
367

 

 
73

 

 

Land
693

 
1,101

 

 
839

 
16

 
12

Consumer loans:
 
 
 

 
 
 
 

 
 

 
 

Home equity and second mortgage
402

 
593

 

 
264

 

 

Commercial business loans

 

 

 
15

 

 

        Subtotal
9,942

 
11,806

 

 
10,476

 
475

 
380

With an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 

Mortgage loans:
 

 
 

 
 

 
 

 
 

 
 

One- to four-family
1,350

 
1,350

 
70

 
1,921

 
118

 
89

Multi-family

 

 

 
655

 

 

Commercial
3,743

 
3,743

 
413

 
4,181

 
275

 
215

Land
575

 
575

 
53

 
604

 
39

 
32

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 

Home equity and second mortgage
597

 
597

 
227

 
709

 
44

 
40

       Other
30

 
30

 
13

 
33

 
2

 
2

       Subtotal
6,295

 
6,295

 
776

 
8,103

 
478

 
378

Total:
 

 
 

 
 

 
 

 
 

 
 

Mortgage loans:
 

 
 

 
 

 
 

 
 

 
 

One- to four-family
2,264

 
2,410

 
70

 
3,270

 
156

 
127

Multi-family

 

 

 
807

 

 

Commercial
11,309

 
12,428

 
413

 
11,965

 
696

 
545

Construction – custom and owner / builder
367

 
367

 

 
73

 

 

Land
1,268

 
1,676

 
53

 
1,443

 
55

 
44

Consumer loans:
 

 
 

 
 
 
 

 
 

 
 

Home equity and second mortgage
999

 
1,190

 
227

 
973

 
44

 
40

Other
30

 
30

 
13

 
33

 
2

 
2

Commercial business loans

 

 

 
15

 

 

     Total
$
16,237

 
$
18,101

 
$
776

 
$
18,579

 
$
953

 
$
758

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

Schedule of Troubled Debt Restructuring Loans by Interest Accrual Status
The following tables set forth information with respect to the Company’s TDRs by interest accrual status as of September 30, 2017 and 2016 (dollars in thousands):
 
2017
 
Accruing
 
Non-
Accrual
 
Total
Mortgage loans:
 
 
 
 
 
One- to four-family
$
569

 
$

 
$
569

Commercial
2,219

 

 
2,219

Land
554

 
253

 
807

        Total
$
3,342

 
$
253

 
$
3,595

 
2016
 
Accruing
 
Non-
Accrual
 
Total
Mortgage loans:
 
 
 
 
 
One- to four-family
$
1,350

 
$
126

 
$
1,476

Commercial
5,268

 

 
5,268

Land
720

 
253

 
973

Consumer loans:
 

 
 

 
 

Home equity and second mortgage
291

 
152

 
443

        Total
$
7,629

 
$
531

 
$
8,160

Troubled Debt Restructurings on Financing Receivables
The following table sets forth information with respect to the Company’s TDRs, by portfolio segment, during the year ended September 30, 2015 (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