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Loans Receivable and Allowance for Loan Losses (Tables)
12 Months Ended
Sep. 30, 2019
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, 2019 and 2018 (dollars in thousands):

 
2019

 
2018

Mortgage loans:
 
 
 
One- to four-family
$
132,661

 
$
115,941

Multi-family
76,036

 
61,928

Commercial
419,117

 
345,113

Construction – custom and owner/builder
128,848

 
119,555

Construction – speculative one- to four-family
16,445

 
15,433

Construction – commercial
39,566

 
39,590

Construction – multi-family
36,263

 
10,740

Construction – land development
2,404

 
3,040

Land
30,770

 
25,546

     Total mortgage loans
882,110

 
736,886

Consumer loans:
 

 
 

Home equity and second mortgage
40,190

 
37,341

Other
4,312

 
3,515

     Total consumer loans
44,502

 
40,856

 
 
 
 
Commercial business loans
64,764

 
43,053

      Total loans receivable
991,376

 
820,795

Less:
 

 
 

Undisbursed portion of construction loans in process
92,226

 
83,237

Deferred loan origination fees, net
2,798

 
2,637

Allowance for loan losses
9,690

 
9,530

 
104,714

 
95,404

Loans receivable, net
$
886,662

 
$
725,391

Schedule of Activity in Related Party Loans
Activity in related party loans during the years ended September 30, 2019, 2018 and 2017 was as follows (dollars in thousands):
 
2019

 
2018

 
2017

Balance, beginning of year
$
119

 
$
741

 
$
230

New loans or borrowings
1

 
368

 
592

Repayments and reclassifications
(26
)
 
(990
)
 
(81
)
Balance, end of year
$
94

 
$
119

 
$
741

Schedule of Allowance for Loan Losses
The following table sets forth information for the year ended September 30, 2019 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
$
1,086

 
$
(23
)
 
$

 
$
104

 
$
1,167

  Multi-family
433

 
48

 

 

 
481

  Commercial
4,248

 
(260
)
 

 
166

 
4,154

  Construction – custom and owner/builder
671

 
82

 

 
2

 
755

  Construction – speculative one- to four-family
178

 
34

 

 

 
212

  Construction – commercial
563

 
(225
)
 

 

 
338

  Construction – multi-family
135

 
240

 

 

 
375

  Construction – land development
49

 
18

 

 

 
67

  Land
844

 
(116
)
 
(49
)
 
18

 
697

Consumer loans:
 

 


 
 

 
 

 
 

  Home equity and second mortgage
649

 
(21
)
 
(5
)
 

 
623

  Other
117

 
(19
)
 
(5
)
 
6

 
99

Commercial business loans
557

 
242

 
(102
)
 
25

 
722

   Total
$
9,530

 
$

 
$
(161
)
 
$
321

 
$
9,690


The following table sets forth information for the year ended September 30, 2018 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
$
1,082

 
$
4

 
$

 
$

 
$
1,086

  Multi-family
447

 
(14
)
 

 

 
433

  Commercial
4,184

 
92

 
(28
)
 

 
4,248

  Construction – custom and owner/builder
699

 
(28
)
 

 

 
671

  Construction – speculative one- to four-family
128

 
37

 

 
13

 
178

  Construction – commercial
303

 
260

 

 

 
563

  Construction – multi-family
173

 
(38
)
 

 

 
135

  Construction – land development

 
49

 

 

 
49

  Land
918

 
(71
)
 
(22
)
 
19

 
844

Consumer loans:
 

 
 

 
 

 
 

 
 

  Home equity and second mortgage
983

 
(334
)
 

 

 
649

  Other
121

 
1

 
(6
)
 
1

 
117

Commercial business loans
515

 
42

 

 

 
557

   Total
$
9,553

 
$

 
$
(56
)
 
$
33

 
$
9,530



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

Schedule of Loans Evaluated Individually for Impairment and Collectively Evaluated for Impairment in the Allowance for Loan Losses
The following table presents information on loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at September 30, 2019 (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
$

 
$
1,167

 
$
1,167

 
$
1,192

 
$
131,469

 
$
132,661

Multi-family

 
481

 
481

 

 
76,036

 
76,036

Commercial

 
4,154

 
4,154

 
3,190

 
415,927

 
419,117

Construction – custom and owner/ builder

 
755

 
755

 

 
75,411

 
75,411

Construction – speculative one- to four-family

 
212

 
212

 

 
10,779

 
10,779

Construction – commercial

 
338

 
338

 

 
24,051

 
24,051

Construction – multi-family

 
375

 
375

 

 
19,256

 
19,256

Construction – land development

 
67

 
67

 

 
1,803

 
1,803

Land
27

 
670

 
697

 
204

 
30,566

 
30,770

Consumer loans:
 

 


 
 

 


 


 
 

Home equity and second mortgage

 
623

 
623

 
603

 
39,587

 
40,190

Other
17

 
82

 
99

 
23

 
4,289

 
4,312

Commercial business loans
128

 
594

 
722

 
725

 
64,039

 
64,764

     Total
$
172

 
$
9,518

 
$
9,690

 
$
5,937

 
$
893,213

 
$
899,150


The following table presents information on loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at September 30, 2018 (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
$

 
$
1,086

 
$
1,086

 
$
1,054

 
$
114,887

 
$
115,941

Multi-family

 
433

 
433

 

 
61,928

 
61,928

Commercial

 
4,248

 
4,248

 
2,446

 
342,667

 
345,113

Construction – custom and owner/ builder

 
671

 
671

 

 
67,024

 
67,024

Construction – speculative one- to four-family

 
178

 
178

 

 
7,107

 
7,107

Construction – commercial

 
563

 
563

 

 
23,440

 
23,440

Construction – multi-family

 
135

 
135

 

 
5,983

 
5,983

Construction – land development

 
49

 
49

 

 
1,567

 
1,567

Land
34

 
810

 
844

 
243

 
25,303

 
25,546

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 

Home equity and second mortgage

 
649

 
649

 
359

 
36,982

 
37,341

Other

 
117

 
117

 

 
3,515

 
3,515

Commercial business loans
63

 
494

 
557

 
170

 
42,883

 
43,053

     Total
$
97

 
$
9,433

 
$
9,530

 
$
4,272

 
$
733,286

 
$
737,558

Past Due Status of Loans Receivable
The following table presents an analysis of loans by aging category and portfolio segment at September 30, 2019 (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
$

 
$
286

 
$
699

 
$

 
$
985

 
$
131,676

 
$
132,661

Multi-family

 

 

 

 

 
76,036

 
76,036

Commercial
94

 
218

 
779

 

 
1,091

 
418,026

 
419,117

Construction – custom and owner/ builder

 

 

 

 

 
75,411

 
75,411

Construction – speculative one- to four-family

 

 

 

 

 
10,779

 
10,779

Construction – commercial

 

 

 

 

 
24,051

 
24,051

Construction – multi-family

 

 

 

 

 
19,256

 
19,256

Construction – land development

 

 

 

 

 
1,803

 
1,803

Land
5

 
193

 
204

 

 
402

 
30,368

 
30,770

Consumer loans:
 

 
 

 
 

 
 

 
 

 


 


Home equity and second mortgage
94

 

 
603

 

 
697

 
39,493

 
40,190

Other

 

 
23

 

 
23

 
4,289

 
4,312

Commercial business loans

 
2

 
725

 

 
727

 
64,037

 
64,764

   Total
$
193

 
$
699

 
$
3,033

 
$

 
$
3,925

 
$
895,225

 
$
899,150

__________________
(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, 2018 (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
$
557

 
$

 
$
545

 
$

 
$
1,102

 
$
114,839

 
$
115,941

Multi-family

 

 

 

 

 
61,928

 
61,928

Commercial
574

 

 

 

 
574

 
344,539

 
345,113

Construction – custom and owner/ builder

 

 

 

 

 
67,024

 
67,024

Construction – speculative one- to four-family

 

 

 

 

 
7,107

 
7,107

Construction – commercial

 

 

 

 

 
23,440

 
23,440

Construction – multi-family

 

 

 

 

 
5,983

 
5,983

Construction – land development

 

 

 

 

 
1,567

 
1,567

Land
40

 

 
243

 

 
283

 
25,263

 
25,546

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 
 
 

Home equity and second mortgage
42

 

 
359

 

 
401

 
36,940

 
37,341

Other
10

 
16

 

 

 
26

 
3,489

 
3,515

Commercial business loans

 

 
170

 

 
170

 
42,883

 
43,053

   Total
$
1,223

 
$
16

 
$
1,317

 
$

 
$
2,556

 
$
735,002

 
$
737,558

___________________
(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 indicator and portfolio segment at September 30, 2019 (dollars in thousands):
 
Loan Grades
 
 
 
Pass
 
Watch
 
Special Mention
 
Substandard
 
Total
Mortgage loans:
 
 
 
 
 
 
 
 
 
One- to four-family
$
129,748

 
$
296

 
$
562

 
$
2,055

 
$
132,661

Multi-family
76,036

 

 

 

 
76,036

Commercial
405,165

 
11,944

 
683

 
1,325

 
419,117

Construction – custom and owner / builder
75,178

 
233

 

 

 
75,411

Construction – speculative one- to four-family
10,779

 

 

 

 
10,779

Construction – commercial
24,051

 

 

 

 
24,051

Construction – multi-family
19,256

 

 

 

 
19,256

Construction – land development
1,659

 

 

 
144

 
1,803

Land
28,390

 
952

 
1,217

 
211

 
30,770

Consumer loans:
 

 
 

 
 

 
 

 
 

Home equity and second mortgage
39,364

 
41

 

 
785

 
40,190

Other
4,257

 
33

 

 
22

 
4,312

Commercial business loans
63,669

 
232

 
85

 
778

 
64,764

        Total
$
877,552

 
$
13,731

 
$
2,547

 
$
5,320

 
$
899,150





The following table presents an analysis of loans by credit quality indicator and portfolio segment at September 30, 2018 (dollars in thousands):
 
Loan Grades
 
 
 
Pass
 
Watch
 
Special Mention
 
Substandard
 
Total
Mortgage loans:
 
 
 
 
 
 
 
 
 
One- to four-family
$
113,148

 
$
882

 
$
581

 
$
1,330

 
$
115,941

Multi-family
61,928

 

 

 

 
61,928

Commercial
334,908

 
8,375

 
988

 
842

 
345,113

Construction – custom and owner / builder
66,720

 
304

 

 

 
67,024

Construction – speculative one- to four-family
7,107

 

 

 

 
7,107

Construction – commercial
23,440

 

 

 

 
23,440

Construction – multi-family
5,983

 

 

 

 
5,983

Construction – land development
1,567

 

 

 

 
1,567

Land
22,810

 
988

 
1,505

 
243

 
25,546

Consumer loans:
 

 
 

 
 

 
 

 
 

Home equity and second mortgage
36,697

 
82

 

 
562

 
37,341

Other
3,480

 

 

 
35

 
3,515

Commercial business loans
42,812

 
22

 
49

 
170

 
43,053

        Total
$
720,600

 
$
10,653

 
$
3,123

 
$
3,182

 
$
737,558

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, 2019 (dollars in thousands):
 
September 30, 2019
 
For the Year Ended September 30, 2019
 
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
$
1,192

 
$
1,236

 
$

 
$
1,110

 
$
71

 
$
62

Commercial
3,190

 
3,190

 

 
2,920

 
227

 
192

Land
63

 
126

 

 
100

 
3

 
3

Consumer loans:
 
 
 

 
 
 
 

 
 

 
 

Home equity and second mortgage
603

 
603

 

 
459

 

 

Commercial business loans
189

 
291

 

 
142

 
30

 
30

        Subtotal
5,237

 
5,446

 

 
4,731

 
331

 
287

With an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 

Mortgage loans:
 

 
 

 
 

 
 

 
 

 
 

Land
141

 
141

 
27

 
246

 

 

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 

      Other
23

 
23

 
17

 
10

 

 

Commercial business loans
536

 
536

 
128

 
350

 
30

 
30

       Subtotal
700

 
700

 
172

 
606

 
30

 
30

Total:
 

 
 

 
 

 
 

 
 

 
 

Mortgage loans:
 

 
 

 
 

 
 

 
 

 
 

One- to four-family
1,192

 
1,236

 

 
1,110

 
71

 
62

Commercial
3,190

 
3,190

 

 
2,920

 
227

 
192

Land
204

 
267

 
27

 
346

 
3

 
3

Consumer loans:
 

 
 

 
 
 
 

 
 

 
 

Home equity and second mortgage
603

 
603

 

 
459

 

 

Other
23

 
23

 
17

 
10

 

 

Commercial business loans
725

 
827

 
128

 
492

 
60

 
60

     Total
$
5,937

 
$
6,146

 
$
172

 
$
5,337

 
$
361

 
$
317


The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2018 (dollars in thousands):
 
September 30, 2018
 
For the Year Ended September 30, 2018
 
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
$
1,054

 
$
1,200

 
$

 
$
1,422

 
$
80

 
$
69

Commercial
2,446

 
2,446

 

 
2,389

 
121

 
93

Land
90

 
195

 

 
283

 
11

 
10

Consumer loans:
 
 
 

 
 
 
 

 
 

 
 

Home equity and second mortgage
359

 
359

 

 
210

 
3

 
3

        Subtotal
3,949

 
4,200

 

 
4,304

 
215

 
175

With an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 

Mortgage loans:
 

 
 

 
 

 
 

 
 

 
 

One- to four-family

 

 

 
9

 

 

Commercial

 

 

 
760

 
28

 
21

Land
153

 
153

 
34

 
383

 
9

 
8

Consumer loans:
 

 
 

 
 

 
 

 
 

 
 

Home equity and second mortgage

 

 

 
310

 
16

 
13

Commercial business loans
170

 
170

 
63

 
141

 

 

       Subtotal
323

 
323

 
97

 
1,603

 
53

 
42

Total:
 

 
 

 
 

 
 

 
 

 
 

Mortgage loans:
 

 
 

 
 

 
 

 
 

 
 

One- to four-family
1,054

 
1,200

 

 
1,431

 
80

 
69

Commercial
2,446

 
2,446

 

 
3,149

 
149

 
114

Land
243

 
348

 
34

 
666

 
20

 
18

Consumer loans:
 

 
 

 
 
 
 

 
 

 
 

Home equity and second mortgage
359

 
359

 

 
520

 
19

 
16

Commercial business loans
170

 
170

 
63

 
141

 

 

     Total
$
4,272

 
$
4,523

 
$
97

 
$
5,907

 
$
268

 
$
217

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

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, 2019 and 2018 (dollars in thousands):
 
2019
 
Accruing
 
Non-
Accrual
 
Total
Mortgage loans:
 
 
 
 
 
One- to four-family
$
493

 
$
141

 
$
634

Commercial
2,410

 

 
2,410

Consumer loans:
 

 
 

 
 

Home equity and second mortgage

 
82

 
82

Commercial business loans

 
143

 
143

        Total
$
2,903

 
$
366

 
$
3,269

 
2018
 
Accruing
 
Non-
Accrual
 
Total
Mortgage loans:
 
 
 
 
 
One- to four-family
$
509

 
$

 
$
509

Commercial
2,446

 

 
2,446

Land

 
153

 
153

Commercial business loans

 
170

 
170

        Total
$
2,955

 
$
323

 
$
3,278

Troubled Debt Restructurings on Financing Receivables
2019
Number of
Contracts
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post- Modification
Outstanding
Recorded
Investment
 
End of
Period
Balance
Home equity and second mortgage loan (1)
1
 
$
85

 
$
85

 
$
82

Total
1
 
$
85

 
$
85

 
$
82

 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
Land loans (2)
1
 
$
244

 
$
155

 
$
153

Commercial business loans (1)
2
 
183

 
183

 
170

Total
3
 
$
427

 
$
338

 
$
323

 

 


 


 


(1) Modifications were a result of reduction in interest rates or monthly payment amounts.
 
 
 
 
(2) Modification was a result of a reduction in principal balance.