Loans Receivable And Allowance For Credit Losses (Tables)

3 Months Ended

Dec. 31, 2019

Loans and Leases Receivable Disclosure [Abstract]

Summary of Loans Receivable

Loans receivable, net at the dates presented is summarized as follows:

	December 31, 2019			September 30, 2019
	(Dollars in thousands)
One- to four-family:
Originated	$	3,927,015		$	3,873,851
Correspondent purchased	2,343,750			2,349,877
Bulk purchased	237,691			252,347
Construction	38,771			36,758
Total	6,547,227			6,512,833
Commercial:
Commercial real estate	583,848			583,617
Commercial and industrial	57,019			61,094
Construction	107,372			123,159
Total	748,239			767,870
Consumer:
Home equity	118,491			120,587
Other	10,877			11,183
Total	129,368			131,770
Total loans receivable	7,424,834			7,412,473
Less:
ACL	9,435			9,226
Discounts/unearned loan fees	30,323			31,058
Premiums/deferred costs	(44,131		)	(44,558		)
	$	7,429,207		$	7,416,747

Recorded Investment in Loans, Past Due

The following tables present the recorded investment, by class, in loans 30 to 89 days delinquent, loans 90 or more days delinquent or in foreclosure, total delinquent loans, current loans, and total recorded investment at the dates presented. The recorded investment in loans is defined as the unpaid principal balance of a loan, less charge-offs and inclusive of unearned loan fees and deferred costs. At December 31, 2019 and September 30, 2019, all loans 90 or more days delinquent were on nonaccrual status.

	December 31, 2019
			90 or More Days		Total				Total
	30 to 89 Days		Delinquent or		Delinquent		Current		Recorded
	Delinquent		in Foreclosure		Loans		Loans		Investment
	(Dollars in thousands)
One- to four-family:
Originated	$	8,980	$	3,527	$	12,507	$	3,938,497	$	3,951,004
Correspondent purchased	4,179		1,395		5,574		2,369,379		2,374,953
Bulk purchased	3,345		701		4,046		234,723		238,769
Commercial:
Commercial real estate	963		—		963		687,095		688,058
Commercial and industrial	231		—		231		56,385		56,616
Consumer:
Home equity	442		328		770		117,637		118,407
Other	45		12		57		10,778		10,835
	$	18,185	$	5,963	$	24,148	$	7,414,494	$	7,438,642

	September 30, 2019
			90 or More Days		Total				Total
	30 to 89 Days		Delinquent or		Delinquent		Current		Recorded
	Delinquent		in Foreclosure		Loans		Loans		Investment
	(Dollars in thousands)
One- to four-family:
Originated	$	7,187	$	3,261	$	10,448	$	3,885,335	$	3,895,783
Correspondent purchased	2,762		1,023		3,785		2,377,629		2,381,414
Bulk purchased	3,624		1,484		5,108		248,376		253,484
Commercial:
Commercial real estate	762		—		762		702,377		703,139
Commercial and industrial	70		173		243		60,340		60,583
Consumer:
Home equity	446		302		748		119,688		120,436
Other	78		21		99		11,035		11,134
	$	14,929	$	6,264	$	21,193	$	7,404,780	$	7,425,973

Recorded Investment in Loans, Nonaccrual

The following table presents the recorded investment, by class, in loans classified as nonaccrual at the dates presented.

	December 31, 2019		September 30, 2019
	(Dollars in thousands)
One- to four-family:
Originated	$	4,159	$	4,436
Correspondent purchased	1,395		1,023
Bulk purchased	835		1,551
Commercial:
Commercial real estate	187		—
Commercial and industrial	175		173
Consumer:
Home equity	328		337
Other	12		21
	$	7,091	$	7,541

Recorded Investment in Classified Loans

The following table sets forth the recorded investment in loans classified as special mention or substandard, by class, at the dates presented. Special mention and substandard loans are included in the ACL formula analysis model if the loans are not individually evaluated for loss. Loans classified as doubtful or loss are individually evaluated for loss. At the dates presented, there were no loans classified as doubtful, and all loans classified as loss were fully charged-off.

	December 31, 2019				September 30, 2019
	Special Mention		Substandard		Special Mention		Substandard
	(Dollars in thousands)
One- to four-family:
Originated	$	12,558	$	16,901	$	12,941	$	15,628
Correspondent purchased	3,102		3,248		2,349		2,785
Bulk purchased	100		5,080		102		5,294
Commercial:
Commercial real estate	51,556		2,599		52,891		2,472
Commercial and industrial	1,232		2,752		1,215		3,057
Consumer:
Home equity	366		673		280		696
Other	8		10		2		24
	$	68,922	$	31,263	$	69,780	$	29,956

Weighted Average Loan-to-Value and Credit Score Information

The following table shows the weighted average credit score and weighted average LTV for one- to four-family loans and consumer home equity loans at the dates presented. Borrower credit scores are intended to provide an indication as to the likelihood that a borrower will repay their debts. Credit scores are updated at least semiannually, with the last update in September 2019, from a nationally recognized consumer rating agency. The LTV ratios provide an estimate of the extent to which the Bank may incur a loss on any given loan that may go into foreclosure. The consumer - home equity LTV does not take into account the first lien position, if applicable.  The LTV ratios were based on the current loan balance and either the lesser of the purchase price or original appraisal, or the most recent Bank appraisal, if available. In most cases, the most recent appraisal was obtained at the time of origination.

	December 31, 2019			September 30, 2019
	Credit Score	LTV		Credit Score	LTV
One- to four-family - originated	768	62	%	768	62	%
One- to four-family - correspondent	764	65		765	65
One- to four-family - bulk purchased	763	61		762	61
Consumer - home equity	754	19		754	19
	766	62		766	62

Troubled Debt Restructurings on Financing Receivables

The following tables present the recorded investment prior to restructuring and immediately after restructuring in all loans restructured during the periods presented. These tables do not reflect the recorded investment at the end of the periods indicated. Any increase in the recorded investment at the time of the restructuring was generally due to the capitalization of delinquent interest and/or escrow balances.

	For the Three Months Ended
	December 31, 2019
	Number	Pre-		Post-
	of	Restructured		Restructured
	Contracts	Outstanding		Outstanding
	(Dollars in thousands)
One- to four-family:
Originated	2	$	103	$	102
Correspondent purchased	—	—		—
Bulk purchased	1	75		134
Commercial:
Commercial real estate	—	—		—
Commercial and industrial	—	—		—
Consumer:
Home equity	—	—		—
Other	—	—		—
	3	$	178	$	236

	For the Three Months Ended
	December 31, 2018
	Number	Pre-		Post-
	of	Restructured		Restructured
	Contracts	Outstanding		Outstanding
	(Dollars in thousands)
One- to four-family:
Originated	1	$	117	$	117
Correspondent purchased	—	—		—
Bulk purchased	—	—		—
Commercial:
Commercial real estate	—	—		—
Commercial and industrial	—	—		—
Consumer:
Home equity	—	—		—
Other	—	—		—
	1	$	117	$	117

The following table provides information on TDRs that became delinquent during the periods presented within 12 months after being restructured.

	For the Three Months Ended
	December 31, 2019			December 31, 2018
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(Dollars in thousands)
One- to four-family:
Originated	1	$	38	—	$	—
Correspondent purchased	—	—		—	—
Bulk purchased	1	134		—	—
Commercial:
Commercial real estate	—	—		—	—
Commercial and industrial	—	—		—	—
Consumer:
Home equity	—	—		—	—
Other	—	—		—	—
	2	$	172	—	$	—

Impaired Loans by Class

The following information pertains to impaired loans, by class, for the periods presented.

	For the Three Months Ended
	December 31, 2019				December 31, 2018
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
	(Dollars in thousands)
With no related allowance recorded
One- to four-family:
Originated	$	14,621	$	161	$	18,049	$	185
Correspondent purchased	1,760		18		2,309		22
Bulk purchased	4,978		52		5,632		43
Commercial:
Commercial real estate	—		—		—		—
Commercial and industrial	33		—		—		—
Consumer:
Home equity	337		6		489		9
Other	—		—		—		—
	21,729		237		26,479		259
With an allowance recorded
One- to four-family:
Originated	—		—		—		—
Correspondent purchased	—		—		—		—
Bulk purchased	—		—		—		—
Commercial:
Commercial real estate	—		—		—		—
Commercial and industrial	608		12		—		—
Consumer:
Home equity	—		—		—		—
Other	—		—		—		—
	608		12		—		—
Total
One- to four-family:
Originated	14,621		161		18,049		185
Correspondent purchased	1,760		18		2,309		22
Bulk purchased	4,978		52		5,632		43
Commercial:
Commercial real estate	—		—		—		—
Commercial and industrial	641		12		—		—
Consumer:
Home equity	337		6		489		9
Other	—		—		—		—
	$	22,337	$	249	$	26,479	$	259

The following information pertains to impaired loans, by class, as of the dates presented.

	December 31, 2019						September 30, 2019
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		ACL		Investment		Balance		ACL
	(Dollars in thousands)
With no related allowance recorded
One- to four-family:
Originated	$	14,568	$	15,135	$	—	$	14,683	$	15,241	$	—
Correspondent purchased	1,756		1,861		—		1,763		1,868		—
Bulk purchased	5,020		5,737		—		4,943		5,661		—
Commercial:
Commercial real estate	—		—		—		—		—		—
Commercial and industrial	—		148		—		60		184		—
Consumer:
Home equity	327		440		—		345		462		—
Other	—		31		—		—		29		—
	21,671		23,352		—		21,794		23,445		—
With an allowance recorded
One- to four-family:
Originated	—		—		—		—		—		—
Correspondent purchased	—		—		—		—		—		—
Bulk purchased	—		—		—		—		—		—
Commercial:
Commercial real estate	—		—		—		—		—		—
Commercial and industrial	2,432		2,432		225		—		—		—
Consumer:
Home equity	—		—		—		—		—		—
Other	—		—		—		—		—		—
	2,432		2,432		225		—		—		—
Total
One- to four-family:
Originated	14,568		15,135		—		14,683		15,241		—
Correspondent purchased	1,756		1,861		—		1,763		1,868		—
Bulk purchased	5,020		5,737		—		4,943		5,661		—
Commercial:
Commercial real estate	—		—		—		—		—		—
Commercial and industrial	2,432		2,580		225		60		184		—
Consumer:
Home equity	327		440		—		345		462		—
Other	—		31		—		—		29		—
	$	24,103	$	25,784	$	225	$	21,794	$	23,445	$	—

Allowance for Credit Losses

The following is a summary of ACL activity, by loan portfolio segment, for the periods presented, and the ending balance of ACL based on the Company's impairment methodology.

	For the Three Months Ended December 31, 2019
	One- to Four-Family
				Correspondent			Bulk
	Originated			Purchased			Purchased			Total			Commercial			Consumer			Total
	(Dollars in thousands)
Beginning balance	$	2,000		$	1,203		$	687		$	3,890		$	5,171		$	165		$	9,226
Charge-offs	(18		)	—			—			(18		)	(24		)	(6		)	(48		)
Recoveries	—			—			—			—			27			5			32
Provision for credit losses	65			(3		)	(75		)	(13		)	244			(6		)	225
Ending balance	$	2,047		$	1,200		$	612		$	3,859		$	5,418		$	158		$	9,435

	For the Three Months Ended December 31, 2018
	One- to Four-Family
				Correspondent			Bulk
	Originated			Purchased			Purchased			Total			Commercial		Consumer			Total
	(Dollars in thousands)
Beginning balance	$	2,953		$	1,861		$	925		$	5,739		$	2,556	$	168		$	8,463
Charge-offs	(20		)	—			(26		)	(46		)	—		(10		)	(56		)
Recoveries	3			—			89			92			2		57			151
Provision for credit losses	(175		)	(113		)	(152		)	(440		)	476		(36		)	—
Ending balance	$	2,761		$	1,748		$	836		$	5,345		$	3,034	$	179		$	8,558

The following is a summary of the loan portfolio and related ACL balances, at the dates presented, by loan portfolio segment disaggregated by the Company's impairment method.

	December 31, 2019
	One- to Four-Family
			Correspondent		Bulk
	Originated		Purchased		Purchased		Total		Commercial		Consumer		Total
	(Dollars in thousands)
Recorded investment in loans
collectively evaluated for impairment	$	3,936,436	$	2,373,197	$	233,749	$	6,543,382	$	742,242	$	128,915	$	7,414,539
Recorded investment in loans
individually evaluated for impairment	14,568		1,756		5,020		21,344		2,432		327		24,103
	$	3,951,004	$	2,374,953	$	238,769	$	6,564,726	$	744,674	$	129,242	$	7,438,642
ACL for loans collectively
evaluated for impairment	$	2,047	$	1,200	$	612	$	3,859	$	5,193	$	158	$	9,210
ACL for loans individually
evaluated for impairment	—		—		—		—		225		—		225

	September 30, 2019
	One- to Four-Family
			Correspondent		Bulk
	Originated		Purchased		Purchased		Total		Commercial		Consumer		Total
	(Dollars in thousands)
Recorded investment in loans
collectively evaluated for impairment	$	3,881,100	$	2,379,651	$	248,541	$	6,509,292	$	763,662	$	131,225	$	7,404,179
Recorded investment in loans
individually evaluated for impairment	14,683		1,763		4,943		21,389		60		345		21,794
	$	3,895,783	$	2,381,414	$	253,484	$	6,530,681	$	763,722	$	131,570	$	7,425,973
ACL for loans collectively
evaluated for impairment	$	2,000	$	1,203	$	687	$	3,890	$	5,171	$	165	$	9,226
ACL for loans individually
evaluated for impairment	—		—		—		—		—		—		—