Loans Receivable And Allowance For Loan Losses

9 Months Ended

Jun. 30, 2013

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 consisted of the following at June 30, 2013 and September 30, 2012 (dollars in thousands):

	June 30, 2013					September 30, 2012
	Amount			Percent		Amount			Percent
Mortgage loans:
One- to four-family (1)	$	104,784		18.3	%	$	106,979		18.8	%
Multi-family	48,781			8.5		47,521			8.4
Commercial	290,240			50.8		256,254			45.1
Construction and land development	38,916			6.8		56,406			9.9
Land	31,673			5.5		39,655			7.0
Total mortgage loans	514,394			89.9		506,815			89.2
Consumer loans:
Home equity and second mortgage	31,936			5.6		32,814			5.8
Other	6,013			1.1		6,183			1.1
Total consumer loans	37,949			6.7		38,997			6.9
Commercial business loans	19,557			3.4		22,588			3.9
Total loans receivable	571,900			100.0	%	568,400			100.0	%
Less:
Undisbursed portion of construction  loans in process	(13,816		)			(16,325		)
Deferred loan origination fees	(1,670		)			(1,770		)
Allowance for loan losses	(11,126		)			(11,825		)
Total loans receivable, net	$	545,288				$	538,480

________________________

(1)    Includes loans held for sale.

Construction and Land Development Loan Portfolio Composition

The following table sets forth the composition of the Company’s construction and land development loan portfolio at June 30, 2013 and September 30, 2012 (dollars in thousands):

	June 30, 2013				September 30, 2012
	Amount		Percent		Amount		Percent
Custom and owner/builder	$	33,502	86.1	%	$	33,345	59.1	%
Speculative one- to four-family	1,020		2.6		1,880		3.4
Commercial real estate	3,589		9.2		20,247		35.9
Multi-family (including condominiums)	289		0.8		345		0.6
Land development	516		1.3		589		1.0
Total construction and  land development loans	$	38,916	100.0	%	$	56,406	100.0	%

Allowance for Loan Losses

The following tables set forth information for the three and nine months ended June 30, 2013 and June 30, 2012 regarding activity in the allowance for loan losses (dollars in thousands):

	Three Months Ended June 30, 2013
	Beginning Allowance		Provision /(Credit)			Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	1,846	$	1		$	3	$	19	$	1,863
Multi-family	815		(1		)	—		—		814
Commercial	4,497		179			11		3		4,668
Construction – custom and owner/builder	284		(29		)	26		—		229
Construction – speculative one- to four-family	141		(58		)	—		—		83
Construction – commercial	85		5			—		—		90
Construction – multi-family	—		—			—		—		—
Construction – land development	12		(2		)	10		—		—
Land	2,197		1,311			1,543		1		1,966
Consumer loans:
Home equity and second mortgage	781		(2		)	—		5		784
Other	239		2			8		—		233
Commercial business loans	416		(21		)	—		1		396
Total	$	11,313	$	1,385		$	1,601	$	29	$	11,126

	Nine Months Ended June 30, 2013
	Beginning Allowance		Provision /(Credit)			Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	1,558	$	792		$	527	$	40	$	1,863
Multi-family	1,156		(227		)	116		1		814
Commercial	4,247		1,035			667		53		4,668
Construction – custom and owner/builder	386		(131		)	26		—		229
Construction – speculative one- to four-family	128		(45		)	—		—		83
Construction – commercial	429		(339		)	—		—		90
Construction – multi-family	—		—			—		—		—
Construction – land development	—		(130		)	16		146		—
Land	2,392		1,821			2,250		3		1,966
Consumer loans:
Home equity and second mortgage	759		204			184		5		784
Other	254		(7		)	14		—		233
Commercial business loans	516		(213		)	—		93		396
Total	$	11,825	$	2,760		$	3,800	$	341	$	11,126

	Three Months Ended June 30, 2012
	Beginning Allowance		Provision /(Credit)			Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	931	$	(10	)	$	92	$	3	$	832
Multi-family	1,288		(116)			3		3		1,172
Commercial	3,737		1,104			288		—		4,553
Construction – custom and owner/builder	267		160			—		—		427
Construction – speculative one- to four-family	171		(64)			—		—		107
Construction – commercial	861		139			622		—		378
Construction – multi-family	504		(480)			24		—		—
Construction – land development	95		(86)			9		—		—
Land	2,737		406			526		1		2,618
Consumer loans:
Home equity and second mortgage	431		91			14		14		522
Other	353		15			4		—		364
Commercial business loans	889		(259)			—		—		630
Total	$	12,264	$	900		$	1,582	$	21	$	11,603

	Nine Months Ended June 30, 2012
	Beginning Allowance		Provision /(Credit)		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	760	$	279	$	211	$	4	$	832
Multi-family	1,076		96		3		3		1,172
Commercial	4,035		1,314		796		—		4,553
Construction – custom and owner/builder	222		205		—		—		427
Construction – speculative one- to four-family	169		(63)		—		1		107
Construction – commercial	794		206		622		—		378
Construction – multi-family	354		(780)		24		450		—
Construction – land development	79		160		239		—		—
Land	2,795		801		1,058		80		2,618
Consumer loans:
Home equity and second mortgage	460		166		118		14		522
Other	415		(27)		24		—		364
Commercial business loans	787		243		401		1		630
Total	$	11,946	$	2,600	$	3,496	$	553	$	11,603

The following table presents information on the loans evaluated individually for impairment and collectively evaluated for impairment in the allowance for loan losses at June 30, 2013 and September 30, 2012 (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
June 30, 2013
Mortgage loans:
One- to four-family	$	947	$	916	$	1,863	$	8,013	$	96,771	$	104,784
Multi-family	396		418		814		6,222		42,559		48,781
Commercial	1,169		3,499		4,668		17,846		272,394		290,240
Construction – custom and owner/builder	—		229		229		73		19,915		19,988
Construction – speculative one- to four-family	82		1		83		692		26		718
Construction – commercial	—		90		90		—		3,589		3,589
Construction –  multi-family	—		—		—		289		—		289
Construction – land development	—		—		—		516		—		516
Land	254		1,712		1,966		2,558		29,115		31,673
Consumer loans:
Home equity and second mortgage	38		746		784		530		31,406		31,936
Other	—		233		233		6		6,007		6,013
Commercial business loans	—		396		396		—		19,557		19,557
Total	$	2,886	$	8,240	$	11,126	$	36,745	$	521,339	$	558,084
September 30, 2012
Mortgage loans:
One- to four-family	$	678	$	880	$	1,558	$	5,282	$	101,697	$	106,979
Multi-family	711		445		1,156		6,879		40,642		47,521
Commercial	667		3,580		4,247		17,192		239,062		256,254
Construction – custom and owner/Builder	15		371		386		309		20,159		20,468
Construction – speculative one- to four-family	109		19		128		1,027		495		1,522
Construction – commercial	—		429		429		—		17,157		17,157
Construction – multi-family	—		—		—		345		—		345
Construction – land development	—		—		—		589		—		589
Land	686		1,706		2,392		8,613		31,042		39,655
Consumer loans:
Home equity and second mortgage	36		723		759		562		32,252		32,814
Other	—		254		254		7		6,176		6,183
Commercial business loans	—		516		516		—		22,588		22,588
Total	$	2,902	$	8,923	$	11,825	$	40,805	$	511,270	$	552,075

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 ongoing 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 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.

The following table lists the loan credit risk grades utilized by the Company that serve as credit quality indicators at June 30, 2013 and September 30, 2012 (dollars in thousands):

June 30, 2013	Loan Grades
	Pass		Watch		Special Mention		Substandard		Total
Mortgage loans:
One- to four-family	$	91,821	$	4,353	$	1,301	$	7,309	$	104,784
Multi-family	39,253		140		8,599		789		48,781
Commercial	261,469		3,337		16,624		8,810		290,240
Construction – custom and owner/builder	19,915		—		—		73		19,988
Construction – speculative one- to four-family	26		692		—		—		718
Construction – commercial	3,589		—		—		—		3,589
Construction – multi-family	—		—		—		289		289
Construction – land development	—		—		—		516		516
Land	21,023		5,041		2,266		3,343		31,673
Consumer loans:
Home equity and second mortgage	30,040		786		244		866		31,936
Other	5,967		40		—		6		6,013
Commercial business loans	18,906		544		107		—		19,557
Total	$	492,009	$	14,933	$	29,141	$	22,001	$	558,084
September 30, 2012
Mortgage loans:
One- to four-family	$	93,668	$	4,000	$	4,343	$	4,968	$	106,979
Multi-family	35,703		107		10,220		1,491		47,521
Commercial	228,036		1,722		11,515		14,981		256,254
Construction – custom and owner/builder	17,621		—		2,538		309		20,468
Construction – speculative one- to four-family	304		191		700		327		1,522
Construction – commercial	17,157		—		—		—		17,157
Construction – multi-family	—		—		—		345		345
Construction – land development	—		—		—		589		589
Land	22,700		5,788		2,554		8,613		39,655
Consumer loans:
Home equity and second mortgage	29,777		1,488		788		761		32,814
Other	6,136		40		—		7		6,183
Commercial business loans	20,777		834		286		691		22,588
Total	$	471,879	$	14,170	$	32,944	$	33,082	$	552,075

The following tables present an age analysis of past due status of loans by category at June 30, 2013 and September 30, 2012 (dollars in thousands):

	30–59 Days Past Due		60-89 Days Past Due		Non- Accrual		Past Due 90 Days or More and Still Accruing		Total Past Due		Current		Total Loans
June 30, 2013
Mortgage loans:
One- to four-family	$	1,064	$	47	$	5,930	$	—	$	7,041	$	97,743	$	104,784
Multi-family	—		—		789		—		789		47,992		48,781
Commercial	—		—		1,680		6		1,686		288,554		290,240
Construction – custom and owner/builder	—		—		74		—		74		19,914		19,988
Construction – speculative one- to four- family	—		—		—		—		—		718		718
Construction – commercial	—		—		—		—		—		3,589		3,589
Construction – multi-family	—		—		289		—		289		—		289
Construction – land development	—		—		516		—		516		—		516
Land	46		56		2,314		—		2,416		29,257		31,673
Consumer loans:
Home equity and second mortgage	150		193		230		151		724		31,212		31,936
Other	—		—		6		—		6		6,007		6,013
Commercial business loans	63		16		—		—		79		19,478		19,557
Total	$	1,323	$	312	$	11,828	$	157	$	13,620	$	544,464	$	558,084
September 30, 2012
Mortgage loans:
One- to four-family	$	1,987	$	—	$	3,382	$	142	$	5,511	$	101,468	$	106,979
Multi-family	3,402		—		1,449		—		4,851		42,670		47,521
Commercial	1,071		—		6,049		6		7,126		249,128		256,254
Construction – custom and owner/        builder	—		—		309		—		309		20,159		20,468
Construction – speculative one- to four- family	—		—		327		700		1,027		495		1,522
Construction – commercial	—		—		—		—		—		17,157		17,157
Construction – multi-family	—		—		345		—		345		—		345
Construction – land development	—		—		589		—		589		—		589
Land	943		—		8,613		200		9,756		29,899		39,655
Consumer loans:
Home equity and second mortgage	277		14		261		150		702		32,112		32,814
Other	4		—		7		—		11		6,172		6,183
Commercial business loans	—		15		—		—		15		22,573		22,588
Total	$	7,684	$	29	$	21,331	$	1,198	$	30,242	$	521,833	$	552,075

Impaired Loans

A loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest payments due in accordance with the original or modified terms of the loan agreement.  Impaired loans are measured based on the estimated fair value of the collateral less estimated cost to sell if the loan is considered collateral dependent.  Impaired loans that are not considered to be collateral dependent are measured based on the present value of expected future cash flows.

The categories of non-accrual loans and impaired loans overlap, although they are not coextensive.  The Company considers all circumstances regarding the loan and borrower on an individual basis when determining whether an impaired loan should be placed on non-accrual status, such as the financial strength of the borrower, the estimated collateral value, reasons for the delay, payment record, the amount past due and the number of days past due.

Following is a summary of information related to impaired loans as of June 30, 2013 and for the three and nine months then ended (in thousands):

	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		QTD Average Recorded Investment (1)		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	$	2,668	$	3,072	$	—	$	2,289	$	1,809	$	—	$	5	$	—	$	4
Multi-family	789		1,771		—		789		473		—		3		—		3
Commercial	10,279		13,405		—		10,733		10,597		80		239		61		205
Construction – custom and owner/builder	73		99		—		37		139		—		—		—		—
Construction – speculative one- to four-family	—		—		—		—		65		—		—		—		—
Construction – commercial	—		—		—		—		—		—		—		—		—
Construction – multi-family	289		754		—		317		334		—		—		—		—
Construction – land development	516		3,279		—		521		553		—		—		—		—
Land	1,255		2,167		—		2,537		4,667		3		6		3		5
Consumer loans:
Home equity and second mortgage	230		532		—		213		277		—		—		—		—
Other	6		6		—		11		9		—		—		—		—
Commercial business loans	—		45		—		—		6		—		—		—		—
Subtotal	16,105		25,130		—		17,447		18,929		83		253		64		217
With an allowance recorded:
Mortgage loans:
One- to four-family	5,345		5,429		947		5,151		4,258		22		76		30		56
Multi-family	5,433		5,433		396		5,439		6,303		55		230		73		175
Commercial	7,567		8,233		1,169		7,149		7,577		139		349		172		282
Construction – custom and owner/builder	—		—		—		50		81		—		—		—		—
Construction – speculative one- to four-family	692		692		82		695		698		7		22		9		15
Construction – commercial	—		—		—		—		—		—		89		—		71
Construction – multi-family	—		—		—		—		—		—		—		—		—
Construction - land development	—		—		—		—		—		—		—		—		—
Land	1,303		1,326		254		1,743		2,238		6		21		6		21
Consumer loans:

Home equity and second mortgage	300		300		38		429		421		3		12		4		9
Other	—		—		—		—		—		—		—		—		—
Commercial business loans	—		—		—		—		—		—		—		—		—
Subtotal	20,640		21,413		2,886		20,656		21,576		232		799		294		629
Total
Mortgage loans:
One- to four-family	8,013		8,501		947		7,440		6,067		22		81		30		60
Multi-family	6,222		7,204		396		6,228		6,776		55		233		73		178
Commercial	17,846		21,638		1,169		17,882		18,174		219		588		233		487
Construction – custom and owner/builder	73		99		—		87		220		—		—		—		—
Construction – speculative one- to four-family	$	692	$	692	$	82	$	695	$	763	$	7	$	22	$	9	$	15
Construction – commercial	—		—		—		—		—		—		89		—		71
Construction – multi-family	289		754		—		317		334		—		—		—		—
Construction – land development	516		3,279		—		521		553		—		—		—		—
Land	2,558		3,493		254		4,280		6,905		9		27		9		26
Consumer loans:
Home equity and second mortgage	530		832		38		642		698		3		12		4		9
Other	6		6		—		11		9		—		—		—		—
Commercial business loans	—		45		—		—		6		—		—		—		—
Total	$	36,745	$	46,543	$	2,886	$	38,103	$	40,505	$	315	$	1,052	$	358	$	846

________________________________________________

(1) For the three months ended June 30, 2013

(2) For the nine months ended June 30, 2013

The following is a summary of information related to impaired loans as of and for the year ended September 30, 2012 (in thousands):

	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		YTD Average Recorded Investment (1)		YTD Interest Income Recognized (1)		YTD Cash Basis Interest Income Recognized (1)
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	1,510	$	1,605	$	—	$	1,838	$	20	$	16
Multi-family	—		982		—		—		1		1
Commercial	7,596		8,664		—		14,491		543		348
Construction – custom and owner/builder	208		208		—		209		—		—
Construction – speculative one- to four-family	327		327		—		65		—		—
Construction – commercial	—		2,066				—		14		14
Construction – multi-family	345		810		—		338		—		—
Construction – land development	589		3,497		—		1,089		14		14
Land	5,989		8,247		—		6,279		28		16
Consumer loans:
Home equity and second mortgage	261		383		—		482		—		—
Other	7		7		—		5		—		—
Commercial business loans	—		166		—		32		2		2
Subtotal	16,832		26,962		—		24,828		622		411
With an allowance recorded:
Mortgage loans:
One- to four-family	3,772		3,772		678		2,520		81		62
Multi-family	6,879		6,879		711		6,618		294		189
Commercial	9,596		9,596		667		5,043		60		39
Construction – custom and owner/builder	101		101		15		106		—		—
Construction – speculative one- to four-family	700		700		109		700		29		20
Construction – commercial	—		—		—		3,248		230		146
Construction – multi-family	—		—		—		74		—		—
Land	2,624		2,811		686		3,307		37		36
Consumer loans:
Home equity and second mortgage	301		301		36		515		31		23
Other	—		—		—		55		—		—
Subtotal	23,973		24,160		2,902		22,186		762		515
Total
Mortgage loans:
One- to four-family	5,282		5,377		678		4,358		101		78
Multi-family	6,879		7,861		711		6,618		295		190
Commercial	17,192		18,260		667		19,534		603		387
Construction – custom and owner/builder	309		309		15		315		—		—
Construction – speculative one- to four-family	1,027		1,027		109		765		29		20
Construction – commercial	—		2,066		—		3,248		244		160
Construction – multi-family	345		810		—		412		—		—
Construction – land development	589		3,497		—		1,089		14		14
Land	8,613		11,058		686		9,586		65		52
Consumer loans:
Home equity and second mortgage	562		684		36		997		31		23
Other	7		7		—		60		—		—
Commercial business loans	—		166		—		32		2		2
Total	$	40,805	$	51,122	$	2,902	$	47,014	$	1,384	$	926

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(1) For the year ended September 30, 2012

The following table sets forth information with respect to the Company’s non-performing assets at June 30, 2013 and September 30, 2012 (dollars in thousands):

	June 30, 2013			September 30, 2012
Loans accounted for on a non-accrual basis:
Mortgage loans:
One- to four-family	$	5,930		$	3,382
Multi-family	789			1,449
Commercial	1,680			6,049
Construction – custom and owner/builder	74			309
Construction – speculative one- to four-family	—			327
Construction – multi-family	289			345
Construction – land development	516			589
Land	2,314			8,613
Consumer loans:
Home equity and second mortgage	230			261
Other	6			7
Total loans accounted for on a non-accrual basis	11,828			21,331
Accruing loans which are contractually past due 90 days or more	157			1,198
Total of non-accrual and 90 days past due loans (1)	11,985			22,529
Non-accrual investment securities	2,327			2,442
OREO and other repossessed assets, net	15,314			13,302
Total non-performing assets (2)	$	29,626		$	38,273
Troubled debt restructured loans on accrual status	$	18,958		$	13,410
Non-accrual and 90 days or more past due loans as a percentage of loans receivable	2.15		%	4.09		%
Non-accrual and 90 days or more past due loans as a percentage of total assets	1.64		%	3.06		%
Non-performing assets as a percentage of total assets	4.04		%	5.19		%
Loans receivable (3)	$	556,414		$	550,305
Total assets	$	732,775		$	736,954

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(1)  Includes troubled debt restructured loans totaling $2.5 million and $10.1 million reported as non-accrual loans at June 30, 2013 and September 30, 2012, respectively.

(2)  Does not include troubled debt restructured loans on accrual status.

(3)  Includes loans held for sale and before the allowance for loan losses.

Troubled debt restructured loans are loans for which the Company, for economic or legal reasons related to the borrower’s financial condition, has granted a significant concession to the borrower that it would otherwise not consider.  The loan terms which have been modified or restructured due to a borrower’s financial difficulty 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; a reduction in the face amount of the debt; a reduction in the accrued interest; or re-aging, extensions, deferrals and renewals.  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. Troubled debt restructured loans are classified as non-performing loans unless they have been performing in accordance with modified terms for a period of at least six months. The Company had $21.4 million in troubled debt restructured loans included in impaired loans at June 30, 2013 and had $1,000 in commitments to lend additional funds on these loans.  The Company had $23.5 million in troubled debt restructured loans included in impaired loans at September 30, 2012 and had $1,000 in commitments to lend additional funds on these loans.

The following table sets forth information with respect to the Company’s troubled debt restructured loans by interest accrual status as of June 30, 2013 and September 30, 2012 (dollars in thousands):

	June 30, 2013
	Accruing		Non- Accrual		Total
Mortgage loans:
One- to four-family	$	2,082	$	144	$	2,226
Multi-family	5,433		—		5,433
Commercial	10,207		—		10,207
Construction – speculative one- to four-family	691		—		691
Construction – land development	—		516		516
Land	245		1,651		1,896
Consumer loans:
Home equity and second mortgage	300		180		480
Total	$	18,958	$	2,491	$	21,449

	September 30, 2012
	Accruing		Non- Accrual		Total
Mortgage loans:
One- to four-family	$	1,900	$	—	$	1,900
Multi-family	5,430		—		5,430
Commercial	5,079		4,862		9,941
Construction – speculative one- to four-family	700		—		700
Construction – land development	—		526		526
Land	—		4,445		4,445
Consumer loans:
Home equity and second mortgage	301		261		562
Total	$	13,410	$	10,094	$	23,504

The following table sets forth information with respect to the Company’s troubled debt restructurings by portfolio segment that occurred during the nine months ended June 30, 2013 and the year ended September 30, 2012 (dollars in thousands):

Nine Months Ended	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Balance at June 30, 2013
June 30, 2013
One-to four-family (1)	2	$	353	$	353	$	352
Commercial (2)	1	750		750		745
Total	3	$	1,103	$	1,103	$	1,097

Year Ended	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Balance at September 30, 2012
September 30, 2012
One-to four-family (1)	1	$	373	$	373	$	372
Commercial (1)	1	2,718		2,718		2,657
Land (2)	1	249		249		233
Total	3	$	3,340	$	3,340	$	3,262

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(1) Modifications were a result of a combination of changes (a reduction in the stated interest rate; an extension of the maturity at an interest rate below current market; a reduction in the face amount of the debt; a reduction in the accrued interest; or re-aging, extensions, deferrals and renewals).

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

There were no troubled debt restructured loans that were recorded in the nine months ended June 30, 2013 or the year ended September 30, 2012 that have subsequently defaulted.