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Loans Receivable And Allowance For Loan Losses | 6 Months Ended
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Mar. 31, 2018
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 by portfolio segment consisted of the following at March 31, 2018 and September 30, 2017 (dollars in thousands):
| March 31, 2018 |  | September 30, 2017
| Amount |  | Percent |  | Amount |  | Percent
Mortgage loans: |  |  |  |  |  |  |
One- to four-family (1) | $ | 112,862 |  |  | 14.1 | % |  | $ | 118,147 |  |  | 15.1 | %
Multi-family | 55,157 |  |  | 6.9 |  |  | 58,607 |  |  | 7.5 |
Commercial | 341,845 |  |  | 42.8 |  |  | 328,927 |  |  | 41.9 |
Construction - custom and owner/builder | 119,230 |  |  | 14.9 |  |  | 117,641 |  |  | 15.0 |
Construction - speculative one- to four-family | 10,876 |  |  | 1.4 |  |  | 9,918 |  |  | 1.2 |
Construction - commercial | 25,166 |  |  | 3.1 |  |  | 19,630 |  |  | 2.5 |
Construction - multi-family | 24,812 |  |  | 3.1 |  |  | 21,327 |  |  | 2.7 |
Construction - land development | 2,950 |  |  | 0.4 |  |  | — |  |  | — |
Land | 20,602 |  |  | 2.6 |  |  | 23,910 |  |  | 3.0 |
Total mortgage loans | 713,500 |  |  | 89.3 |  |  | 698,107 |  |  | 88.9 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgage | 38,124 |  |  | 4.8 |  |  | 38,420 |  |  | 4.9 |
Other | 3,646 |  |  | 0.5 |  |  | 3,823 |  |  | 0.5 |
Total consumer loans | 41,770 |  |  | 5.3 |  |  | 42,243 |  |  | 5.4 |
Commercial business loans (2) | 43,465 |  |  | 5.4 |  |  | 44,444 |  |  | 5.7 |
Total loans receivable | 798,735 |  |  | 100.0 | % |  | 784,794 |  |  | 100.0 | %
Less: |  |  |  |  |  |  |  |  |  |  |
Undisbursed portion of construction loans in process | 78,108 |  |  |  |  |  | 82,411 |  |  |  |
Deferred loan origination fees, net | 2,515 |  |  |  |  |  | 2,466 |  |  |  |
Allowance for loan losses | 9,544 |  |  |  |  |  | 9,553 |  |  |  |
| 90,167 |  |  |  |  | 94,430 |  |  |
Loans receivable, net | $ | 708,568 |  |  |  |  |  | $ | 690,364 |  |  |  |
_____________________________ |  |  |  |  |  |  |
(1) Does not include one- to four-family loans held for sale totaling $3,981and $3,515 at March 31, 2018 and September 30, 2017, respectively.
(2) Does not include commercial business loans held for sale totaling $0 and $84 at March 31, 2018 and September 30, 2017, respectively.
Allowance for Loan Losses The following tables set forth information for the three and six months ended March 31, 2018 and 2017 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):
| Three Months Ended March 31, 2018
| Beginning Allowance |  | Provision for (Recapture of) Loan Losses |  | Charge- offs |  | Recoveries |  | Ending Allowance
Mortgage loans: |  |  |  |  |  |  |  |  |
One- to four-family | $ | 1,125 |  |  | $ | (65 | ) |  | $ | — |  |  | $ | — |  |  | $ | 1,060 |
Multi-family | 430 |  |  | (44 | ) |  | — |  |  | — |  |  | 386 |
Commercial | 4,093 |  |  | 133 |  |  | (28 | ) |  | — |  |  | 4,198 |
Construction – custom and owner/builder | 788 |  |  | (83 | ) |  | — |  |  | — |  |  | 705 |
Construction – speculative one- to four-family | 75 |  |  | 21 |  |  | — |  |  | 3 |  |  | 99 |
Construction – commercial | 396 |  |  | 49 |  |  | — |  |  | — |  |  | 445 |
Construction – multi-family | 228 |  |  | 56 |  |  | — |  |  | — |  |  | 284 |
Construction - land development | — |  |  | 48 |  |  | — |  |  | — |  |  | 48 |
Land | 780 |  |  | (94 | ) |  | — |  |  | 5 |  |  | 691 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgage | 958 |  |  | (13 | ) |  | — |  |  | — |  |  | 945 |
Other | 129 |  |  | (8 | ) |  | (1 | ) |  | — |  |  | 120 |
Commercial business loans | 563 |  |  | — |  |  | — |  |  | — |  |  | 563 |
Total | $ | 9,565 |  |  | $ | — |  |  | $ | (29 | ) |  | $ | 8 |  |  | $ | 9,544 |
| Six Months Ended March 31, 2018
| Beginning Allowance |  | Provision for (Recapture of) Loan Losses |  | Charge- offs |  | Recoveries |  | Ending Allowance
Mortgage loans: |  |  |  |  |  |  |  |  |
One-to four-family | $ | 1,082 |  |  | $ | (22 | ) |  | $ | — |  |  | $ | — |  |  | $ | 1,060 |
Multi-family | 447 |  |  | (61 | ) |  | — |  |  | — |  |  | 386 |
Commercial | 4,184 |  |  | 42 |  |  | (28 | ) |  | — |  |  | 4,198 |
Construction – custom and owner/builder | 699 |  |  | 6 |  |  | — |  |  | — |  |  | 705 |
Construction – speculative one- to four-family | 128 |  |  | (40 | ) |  | — |  |  | 11 |  |  | 99 |
Construction – commercial | 303 |  |  | 142 |  |  | — |  |  | — |  |  | 445 |
Construction – multi-family | 173 |  |  | 111 |  |  | — |  |  | — |  |  | 284 |
Construction – land development | — |  |  | 48 |  |  | — |  |  | — |  |  | 48 |
Land | 918 |  |  | (236 | ) |  | — |  |  | 9 |  |  | 691 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgage | 983 |  |  | (38 | ) |  | — |  |  | — |  |  | 945 |
Other | 121 |  |  | — |  |  | (2 | ) |  | 1 |  |  | 120 |
Commercial business loans | 515 |  |  | 48 |  |  | — |  |  | — |  |  | 563 |
Total | $ | 9,553 |  |  | $ | — |  |  | $ | (30 | ) |  | $ | 21 |  |  | $ | 9,544 |
| Three Months Ended March 31, 2017
| Beginning Allowance |  | Provision for (Recapture of) Loan Losses |  | Charge- offs |  | Recoveries |  | Ending Allowance
Mortgage loans: |  |  |  |  |  |  |  |  |
One- to four-family | $ | 1,177 |  |  | $ | (51 | ) |  | $ | — |  |  | $ | — |  |  | $ | 1,126 |
Multi-family | 400 |  |  | 80 |  |  | — |  |  | — |  |  | 480
Commercial | 4,523 |  |  | (199 | ) |  | (8 | ) |  | — |  |  | 4,316
Construction – custom and owner/builder | 636 |  |  | 59 |  |  | — |  |  | — |  |  | 695
Construction – speculative one- to four-family | 100 |  |  | (15 | ) |  | — |  |  | — |  |  | 85
Construction – commercial | 282 |  |  | (14 | ) |  | — |  |  | — |  |  | 268
Construction – multi-family | 385 |  |  | (289 | ) |  | — |  |  | — |  |  | 96 |
Land | 836 |  |  | 106 |  |  | — |  |  | 5 |  |  | 947
Consumer loans: |  |  |  |  |  |  |  |  |
Home equity and second mortgage | 859 |  |  | 98 |  |  | — |  |  | — |  |  | 957
Other | 156 |  |  | (26 | ) |  | (1 | ) |  | 1 |  |  | 130
Commercial business loans | 489 |  |  | 1 |  |  | — |  |  | — |  |  | 490
Total | $ | 9,843 |  |  | $ | (250 | ) |  | $ | (9 | ) |  | $ | 6 |  |  | $ | 9,590 |
| Six Months Ended March 31, 2017
| Beginning Allowance |  | Provision for (Recapture of) Loan Losses |  | Charge- offs |  | Recoveries |  | Ending Allowance
Mortgage loans: |  |  |  |  |  |  |  |  |
One-to four-family | $ | 1,239 |  |  | $ | (134 | ) |  | $ | — |  |  | $ | 21 |  |  | $ | 1,126 |
Multi-family | 473 |  |  | 7 |  |  | — |  |  | — |  |  | 480
Commercial | 4,384 |  |  | (55) |  |  | (13 | ) |  | — |  |  | 4,316
Construction – custom and owner/builder | 619 |  |  | 76 |  |  | — |  |  | — |  |  | 695
Construction – speculative one- to four-family | 130 |  |  | (45) |  |  | — |  |  | — |  |  | 85
Construction – commercial | 268 |  |  | — |  |  | — |  |  | — |  |  | 268
Construction – multi-family | 316 |  |  | (220 | ) |  | — |  |  | — |  |  | 96 |
Land | 820 |  |  | 119 |  |  | (2 | ) |  | 10 |  |  | 947
Consumer loans: |  |  |  |  |  |  |  |  |
Home equity and second mortgage | 939 |  |  | 18 |  |  | — |  |  | — |  |  | 957
Other | 156 |  |  | (24) |  |  | (4 | ) |  | 2 |  |  | 130
Commercial business loans | 482 |  |  | 8 |  |  | — |  |  | — |  |  | 490
Total | $ | 9,826 |  |  | $ | (250 | ) |  | $ | (19 | ) |  | $ | 33 |  |  | $ | 9,590 |
The following tables present information on the loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at March 31, 2018 and 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
March 31, 2018 |  |  |  |  |  |  |  |  |  |  |
Mortgage loans: |  |  |  |  |  |  |  |  |  |  |
One- to four-family | $ | — |  |  | $ | 1,060 |  |  | $ | 1,060 |  |  | $ | 1,318 |  |  | $ | 111,544 |  |  | $ | 112,862 |
Multi-family | — |  |  | 386 |  |  | 386 |  |  | — |  |  | 55,157 |  |  | 55,157 |
Commercial | — |  |  | 4,198 |  |  | 4,198 |  |  | 2,578 |  |  | 339,267 |  |  | 341,845 |
Construction – custom and owner/builder | — |  |  | 705 |  |  | 705 |  |  | — |  |  | 69,073 |  |  | 69,073 |
Construction – speculative one- to four-family | — |  |  | 99 |  |  | 99 |  |  | — |  |  | 3,968 |  |  | 3,968 |
Construction – commercial | — |  |  | 445 |  |  | 445 |  |  | — |  |  | 17,788 |  |  | 17,788 |
Construction – multi-family | — |  |  | 284 |  |  | 284 |  |  | — |  |  | 12,613 |  |  | 12,613 |
Construction - land development | — |  |  | 48 |  |  | 48 |  |  | — |  |  | 1,484 |  |  | 1,484 |
Land | 40 |  |  | 651 |  |  | 691 |  |  | 640 |  |  | 19,962 |  |  | 20,602 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgage | 293 |  |  | 652 |  |  | 945 |  |  | 479 |  |  | 37,645 |  |  | 38,124 |
Other | — |  |  | 120 |  |  | 120 |  |  |  |  |  | 3,646 |  |  | 3,646 |
Commercial business loans | 63 |  |  | 500 |  |  | 563 |  |  | 181 |  |  | 43,284 |  |  | 43,465 |
Total | $ | 396 |  |  | $ | 9,148 |  |  | $ | 9,544 |  |  | $ | 5,196 |  |  | $ | 715,431 |  |  | $ | 720,627 |
September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 tables present an analysis of loans by aging category and portfolio segment at March 31, 2018 and 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
March 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |
One- to four-family | $ | — |  |  | $ | 247 |  |  | $ | 801 |  |  | $ | — |  |  | $ | 1,048 |  |  | $ | 111,814 |  |  | $ | 112,862 |
Multi-family | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 55,157 |  |  | 55,157 |
Commercial | 796 |  |  | — |  |  | 370 |  |  | — |  |  | 1,166 |  |  | 340,679 |  |  | 341,845 |
Construction – custom and owner/builder | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 69,073 |  |  | 69,073 |
Construction – speculative one- to four- family | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,968 |  |  | 3,968 |
Construction – commercial | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,788 |  |  | 17,788 |
Construction – multi-family | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,613 |  |  | 12,613 |
Construction – land development | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,484 |  |  | 1,484 |
Land | 113 |  |  | — |  |  | 395 |  |  | — |  |  | 508 |  |  | 20,094 |  |  | 20,602 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgage | 52 |  |  | 24 |  |  | 185 |  |  | — |  |  | 261 |  |  | 37,863 |  |  | 38,124 |
Other | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,646 |  |  | 3,646 |
Commercial business loans | 123 |  |  | — |  |  | 181 |  |  | — |  |  | 304 |  |  | 43,161 |  |  | 43,465 |
Total | $ | 1,084 |  |  | $ | 271 |  |  | $ | 1,932 |  |  | $ | — |  |  | $ | 3,287 |  |  | $ | 717,340 |  |  | $ | 720,627 |
September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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. 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. 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 bankable assets 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 March 31, 2018 and September 30, 2017, there were no loans classified as loss. The following tables present an analysis of loans by credit quality indicator and portfolio segment at March 31, 2018 and September 30, 2017 (dollars in thousands):
| Loan Grades |  |
March 31, 2018 | Pass |  | Watch |  | Special Mention |  | Substandard |  | Total
Mortgage loans: |  |  |  |  |  |  |  |  |
One- to four-family | $ | 109,041 |  |  | $ | 1,466 |  |  | $ | 591 |  |  | $ | 1,764 |  |  | $ | 112,862 |
Multi-family | 55,157 |  |  | — |  |  | — |  |  | — |  |  | 55,157 |
Commercial | 331,579 |  |  | 5,993 |  |  | 3,507 |  |  | 766 |  |  | 341,845 |
Construction – custom and owner/builder | 67,818 |  |  | 1,255 |  |  | — |  |  | — |  |  | 69,073 |
Construction – speculative one- to four-family | 3,968 |  |  | — |  |  | — |  |  | — |  |  | 3,968 |
Construction – commercial | 17,788 |  |  | — |  |  | — |  |  | — |  |  | 17,788 |
Construction – multi-family | 12,613 |  |  | — |  |  | — |  |  | — |  |  | 12,613 |
Construction – land development | 1,484 |  |  | — |  |  | — |  |  | — |  |  | 1,484 |
Land | 17,429 |  |  | 1,005 |  |  | 1,773 |  |  | 395 |  |  | 20,602 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgage | 37,623 |  |  | 147 |  |  | — |  |  | 354 |  |  | 38,124 |
Other | 3,611 |  |  | — |  |  | — |  |  | 35 |  |  | 3,646 |
Commercial business loans | 43,203 |  |  | 26 |  |  | 55 |  |  | 181 |  |  | 43,465 |
Total | $ | 701,314 |  |  | $ | 9,892 |  |  | $ | 5,926 |  |  | $ | 3,495 |  |  | $ | 720,627 |
September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 |
Impaired Loans A loan is considered impaired when it is probable that the Company will be unable to collect all amounts (principal and interest) when due according to the contractual terms of the loan agreement. Smaller balance homogeneous loans, such as residential mortgage loans and consumer loans, may be collectively evaluated for impairment. When a loan has been identified as being impaired, the amount of the impairment is measured by using discounted cash flows, except when, as an alternative, the current estimated fair value of the collateral, reduced by estimated costs to sell (if applicable), or observable market price is used. The valuation of real estate collateral is subjective in nature and may be adjusted in future periods because of changes in economic conditions. Management considers third-party appraisals, as well as independent fair market value assessments from realtors or persons involved in selling real estate, in determining the estimated fair value of particular properties. In addition, as certain of these third-party appraisals and independent fair market value assessments are only updated periodically, changes in the values of specific properties may have occurred subsequent to the most recent appraisals. Accordingly, the amounts of any such potential changes and any related adjustments are generally recorded at the time such information is received. When the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest and net deferred loan origination fees or costs), impairment is recognized by creating or adjusting an allocation of the allowance for loan losses and uncollected accrued interest is reversed against interest income. If ultimate collection of principal is in doubt, all cash receipts on impaired loans are applied to reduce the principal balance. The categories of non-accrual loans and impaired loans overlap, although they are not identical. The following table is a summary of information related to impaired loans by portfolio segment as of March 31, 2018 and for the three and six months then ended (dollars in thousands):
| Recorded Investment |  | Unpaid Principal Balance (Loan Balance Plus Charge Off) |  | Related Allowance |  | Quarter to Date ("QTD") Average Recorded Investment (1) |  | Year to Date ("YTD") Average Recorded Investment (2) |  | QTD Interest Income Recognized (1) |  | YTD Interest Income Recognized (2) |  | QTD Cash Basis Interest Income Recognized (1) |  | YTD Cash Basis Interest Income Recognized (2)
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
One- to four-family | $ | 1,318 |  |  | $ | 1,464 |  |  | $ | — |  |  | $ | 1,371 |  |  | $ | 1,395 |  |  | $ | 22 |  |  | $ | 42 |  |  | $ | 19 |  |  | $ | 36 |
Commercial | 2,578 |  |  | 2,606 |  |  | — |  |  | 2,365 |  |  | 2,232 |  |  | 52 |  |  | 75 |  |  | 45 |  |  | 62 |
Land | 445 |  |  | 537 |  |  | — |  |  | 245 |  |  | 262 |  |  | 6 |  |  | 6 |  |  | 5 |  |  | 5 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgage | 185 |  |  | 185 |  |  | — |  |  | 187 |  |  | 165 |  |  | 1 |  |  | 3 |  |  | 1 |  |  | 3 |
Subtotal | 4,526 |  |  | 4,792 |  |  | — |  |  | 4,168 |  |  | 4,054 |  |  | 81 |  |  | 126 |  |  | 70 |  |  | 106 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
One- to four-family | — |  |  | — |  |  | — |  |  | 22 |  |  | 15 |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial | — |  |  | — |  |  | — |  |  | 947 |  |  | 1,266 |  |  | — |  |  | 27 |  |  | — |  |  | 21 |
Land | 195 |  |  | 195 |  |  | 40 |  |  | 547 |  |  | 639 |  |  | — |  |  | 9 |  |  | — |  |  | 8 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgage | 294 |  |  | 294 |  |  | 293 |  |  | 295 |  |  | 341 |  |  | 6 |  |  | 12 |  |  | 6 |  |  | 10 |
Commercial business loans | 181 |  |  | 181 |  |  | 63 |  |  | 181 |  |  | 121 |  |  | — |  |  | — |  |  | — |  |  | — |
Subtotal | 670 |  |  | 670 |  |  | 396 |  |  | 1,992 |  |  | 2,382 |  |  | 6 |  |  | 48 |  |  | 6 |  |  | 39 |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
One- to four-family | 1,318 |  |  | 1,464 |  |  | — |  |  | 1,393 |  |  | 1,410 |  |  | 22 |  |  | 42 |  |  | 19 |  |  | 36 |
Commercial | 2,578 |  |  | 2,606 |  |  | — |  |  | 3,312 |  |  | 3,498 |  |  | 52 |  |  | 102 |  |  | 45 |  |  | 83 |
Land | 640 |  |  | 732 |  |  | 40 |  |  | 792 |  |  | 901 |  |  | 6 |  |  | 15 |  |  | 5 |  |  | 13 |
Consumer loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgage | 479 |  |  | 479 |  |  | 293 |  |  | 482 |  |  | 506 |  |  | 7 |  |  | 15 |  |  | 7 |  |  | 13 |
Commercial business loans | 181 |  |  | 181 |  |  | 63 |  |  | 181 |  |  | 121 |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 5,196 |  |  | $ | 5,462 |  |  | $ | 396 |  |  | $ | 6,160 |  |  | $ | 6,436 |  |  | $ | 87 |  |  | $ | 174 |  |  | $ | 76 |  |  | $ | 145 |
______________________________________________
(1) | For the three months ended March 31, 2018.
(2) | For the six months ended March 31, 2018.
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):
| Recorded Investment |  | Unpaid Principal Balance (Loan Balance Plus Charge Off) |  | Related Allowance |  | Average Recorded Investment (1) |  | Interest Income Recognized (1) |  | Cash Basis Interest Income Recognized (1)
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 |
______________________________________________ (1) For the year ended September 30, 2017. A troubled debt restructured loan ("TDR") is a loan for which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. Examples of such concessions include but are not limited to: a reduction in the stated interest rate; an extension of the maturity at an interest rate below current market rates; a reduction in the face amount of the debt; a reduction in the accrued interest; or re-amortizations, extensions, deferrals and renewals. TDRs are considered impaired and are individually evaluated for impairment. TDRs are classified as non-accrual (and considered to be non-performing) unless they have been performing in accordance with modified terms for a period of at least six months. The Company had $3.13 million and $3.60 million in TDRs included in impaired loans at March 31, 2018 and September 30, 2017, respectively, and had no commitments at these dates to lend additional funds on these loans. The allowance for loan losses allocated to TDRs at March 31, 2018 and September 30, 2017 was $0 and $10,000, respectively. There were no TDRs for which there was a payment default within the first 12 months of the modification during the six months ended March 31, 2018. The following tables set forth information with respect to the Company’s TDRs by interest accrual status as of March 31, 2018 and September 30, 2017 (dollars in thousands):
| March 31, 2018
| Accruing |  | Non- Accrual |  | Total
Mortgage loans: |  |  |  |  |
One- to four-family | $ | 516 |  |  | $ | — |  |  | $ | 516 |
Commercial | 2,208 |  |  | — |  |  | 2,208 |
Land | 246 |  |  | 155 |  |  | 401 |
Total | $ | 2,970 |  |  | $ | 155 |  |  | $ | 3,125 |
| September 30, 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 |
There was one new TDR during the six months ended March 31, 2018 as a result of a reduction in the face amount of the debt on a land loan. This TDR had a pre-modification balance of $214,000, a post-modification balance of $155,000 and a balance at March 31, 2018 of $155,000. There were no new TDRs during the year ended September 30, 2017.

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