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Loans Receivable And Allowance For Credit Losses (Tables)

6 Months Ended

Mar. 31, 2020

Loans and Leases Receivable Disclosure [Abstract]

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



	March 31, 2020			September 30, 2019
	(Dollars in thousands)
One- to four-family:
Originated	$	3,944,782		$	3,873,851
Correspondent purchased	2,385,907			2,349,877
Bulk purchased	228,730			252,347
Construction	35,798			36,758
Total	6,595,217			6,512,833
Commercial:
Commercial real estate	584,236			583,617
Commercial and industrial	62,153			61,094
Construction	126,266			123,159
Total	772,655			767,870
Consumer:
Home equity	114,571			120,587
Other	10,837			11,183
Total	125,408			131,770

Total loans receivable	7,493,280			7,412,473

Less:
ACL	31,196			9,226
Discounts/unearned loan fees	29,645			31,058
Premiums/deferred costs	(44,366		)	(44,558		)
	$	7,476,805		$	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 March 31, 2020 and September 30, 2019, all loans 90 or more days delinquent were on nonaccrual status.



	March 31, 2020
			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	$	8,333	$	4,503	$	12,836	$	3,953,549	$	3,966,385
Correspondent purchased	4,602		1,362		5,964		2,411,591		2,417,555
Bulk purchased	2,950		641		3,591		226,167		229,758
Commercial:
Commercial real estate	1,560		546		2,106		705,058		707,164
Commercial and industrial	—		172		172		61,695		61,867
Consumer:
Home equity	594		304		898		113,577		114,475
Other	34		22		56		10,741		10,797
	$	18,073	$	7,550	$	25,623	$	7,482,378	$	7,508,001



	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.



	March 31, 2020		September 30, 2019
	(Dollars in thousands)
One- to four-family:
Originated	$	5,313	$	4,436
Correspondent purchased	1,553		1,023
Bulk purchased	775		1,551
Commercial:
Commercial real estate	670		—
Commercial and industrial	172		173
Consumer:
Home equity	347		337
Other	22		21
	$	8,852	$	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.



	March 31, 2020				September 30, 2019
	Special Mention		Substandard		Special Mention		Substandard
	(Dollars in thousands)
One- to four-family:
Originated	$	10,586	$	17,308	$	12,941	$	15,628
Correspondent purchased	3,092		3,741		2,349		2,785
Bulk purchased	—		4,910		102		5,294
Commercial:
Commercial real estate	51,416		2,232		52,891		2,472
Commercial and industrial	1,082		2,301		1,215		3,057
Consumer:
Home equity	471		637		280		696
Other	7		22		2		24
	$	66,654	$	31,151	$	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 annually, 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.



	March 31, 2020			September 30, 2019
	Credit Score	LTV		Credit Score	LTV
One- to four-family - originated	767	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	752	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					For the Six Months Ended
	March 31, 2020					March 31, 2020
	Number	Pre-		Post-		Number	Pre-		Post-
	of	Restructured		Restructured		of	Restructured		Restructured
	Contracts	Outstanding		Outstanding		Contracts	Outstanding		Outstanding
	(Dollars in thousands)
One- to four-family:
Originated	3	$	138	$	140	5	$	241	$	242
Correspondent purchased	1	192		191		1	192		191
Bulk purchased	—	—		—		1	75		134
Commercial:
Commercial real estate	1	837		837		1	837		837
Commercial and industrial	—	—		—		—	—		—
Consumer:
Home equity	2	45		44		2	45		44
Other	—	—		—		—	—		—
	7	$	1,212	$	1,212	10	$	1,390	$	1,448



	For the Three Months Ended					For the Six Months Ended
	March 31, 2019					March 31, 2019
	Number	Pre-		Post-		Number	Pre-		Post-
	of	Restructured		Restructured		of	Restructured		Restructured
	Contracts	Outstanding		Outstanding		Contracts	Outstanding		Outstanding
	(Dollars in thousands)
One- to four-family:
Originated	—	$	—	$	—	1	$	117	$	117
Correspondent purchased	—	—		—		—	—		—
Bulk purchased	1	308		308		1	308		308
Commercial:
Commercial real estate	—	—		—		—	—		—
Commercial and industrial	—	—		—		—	—		—
Consumer:
Home equity	—	—		—		—	—		—
Other	—	—		—		—	—		—
	1	$	308	$	308	2	$	425	$	425

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						For the Six Months Ended
	March 31, 2020			March 31, 2019			March 31, 2020			March 31, 2019
	Number of	Recorded		Number of	Recorded		Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment		Contracts	Investment		Contracts	Investment
	(Dollars in thousands)
One- to four-family:
Originated	—	$	—	1	$	45	1	$	38	1	$	45
Correspondent purchased	—	—		—	—		—	—		—	—
Bulk purchased	—	—		—	—		1	134		—	—
Commercial:
Commercial real estate	—	—		—	—		—	—		—	—
Commercial and industrial	—	—		—	—		—	—		—	—
Consumer:
Home equity	1	9		—	—		1	9		—	—
Other	—	—		—	—		—	—		—	—
	1	$	9	1	$	45	3	$	181	1	$	45

Impaired Loans by Class

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



	For the Three Months Ended								For the Six Months Ended
	March 31, 2020				March 31, 2019				March 31, 2020				March 31, 2019
	Average		Interest		Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized		Investment		Recognized		Investment		Recognized
	(Dollars in thousands)
With no related allowance recorded
One- to four-family:
Originated	$	14,441	$	161	$	15,928	$	167	$	14,526	$	322	$	16,980	$	352
Correspondent purchased	1,854		19		2,177		23		1,814		37		2,251		45
Bulk purchased	4,965		50		5,230		43		4,965		102		5,453		86
Commercial:
Commercial real estate	547		4		—		—		312		4		—		—
Commercial and industrial	—		—		—		—		19		—		—		—
Consumer:
Home equity	332		5		436		7		335		11		461		16
Other	—		—		—		—		—		—		—		—
	22,139		239		23,771		240		21,971		476		25,145		499
With an allowance recorded
One- to four-family:
Originated	—		—		—		—		—		—		—		—
Correspondent purchased	—		—		—		—		—		—		—		—
Bulk purchased	—		—		—		—		—		—		—		—
Commercial:
Commercial real estate	—		—		—		—		—		—		—		—
Commercial and industrial	2,244		42		—		—		1,282		54		—		—
Consumer:
Home equity	—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		—		—
	2,244		42		—		—		1,282		54		—		—
Total
One- to four-family:
Originated	14,441		161		15,928		167		14,526		322		16,980		352
Correspondent purchased	1,854		19		2,177		23		1,814		37		2,251		45
Bulk purchased	4,965		50		5,230		43		4,965		102		5,453		86
Commercial:
Commercial real estate	547		4		—		—		312		4		—		—
Commercial and industrial	2,244		42		—		—		1,301		54		—		—
Consumer:
Home equity	332		5		436		7		335		11		461		16
Other	—		—		—		—		—		—		—		—
	$	24,383	$	281	$	23,771	$	240	$	23,253	$	530	$	25,145	$	499

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



	March 31, 2020						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	$	14,406	$	15,013	$	—	$	14,683	$	15,241	$	—
Correspondent purchased	1,946		2,049		—		1,763		1,868		—
Bulk purchased	4,909		5,630		—		4,943		5,661		—
Commercial:
Commercial real estate	512		840		—		—		—		—
Commercial and industrial	—		148		—		60		184		—
Consumer:
Home equity	336		446		—		345		462		—
Other	—		33		—		—		29		—
	22,109		24,159		—		21,794		23,445		—
With an allowance recorded
One- to four-family:
Originated	—		—		—		—		—		—
Correspondent purchased	—		—		—		—		—		—
Bulk purchased	—		—		—		—		—		—
Commercial:
Commercial real estate	—		—		—		—		—		—
Commercial and industrial	2,076		2,074		240		—		—		—
Consumer:
Home equity	—		—		—		—		—		—
Other	—		—		—		—		—		—
	2,076		2,074		240		—		—		—
Total
One- to four-family:
Originated	14,406		15,013		—		14,683		15,241		—
Correspondent purchased	1,946		2,049		—		1,763		1,868		—
Bulk purchased	4,909		5,630		—		4,943		5,661		—
Commercial:
Commercial real estate	512		840		—		—		—		—
Commercial and industrial	2,076		2,222		240		60		184		—
Consumer:
Home equity	336		446		—		345		462		—
Other	—		33		—		—		29		—
	$	24,185	$	26,233	$	240	$	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 March 31, 2020
	One- to Four-Family
				Correspondent		Bulk
	Originated			Purchased		Purchased			Total			Commercial			Consumer			Total
	(Dollars in thousands)
Beginning balance	$	2,047		$	1,200	$	612		$	3,859		$	5,418		$	158		$	9,435
Charge-offs	(46		)	—		—			(46		)	(325		)	(4		)	(375		)
Recoveries	3			—		—			3			54			4			61
Provision for credit losses	4,463			2,155		(55		)	6,563			15,181			331			22,075
Ending balance	$	6,467		$	3,355	$	557		$	10,379		$	20,328		$	489		$	31,196



	For the Six Months Ended March 31, 2020
	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	(64		)	—		—			(64		)	(349		)	(10		)	(423		)
Recoveries	3			—		—			3			81			9			93
Provision for credit losses	4,528			2,152		(130		)	6,550			15,425			325			22,300
Ending balance	$	6,467		$	3,355	$	557		$	10,379		$	20,328		$	489		$	31,196



	For the Three Months Ended March 31, 2019
	One- to Four-Family
				Correspondent			Bulk
	Originated			Purchased			Purchased			Total			Commercial		Consumer			Total
	(Dollars in thousands)
Beginning balance	$	2,761		$	1,748		$	836		$	5,345		$	3,034	$	179		$	8,558
Charge-offs	(10		)	—			—			(10		)	—		(2		)	(12		)
Recoveries	2			—			17			19			25		29			73
Provision for credit losses	(580		)	(356		)	(51		)	(987		)	1,029		(42		)	—
Ending balance	$	2,173		$	1,392		$	802		$	4,367		$	4,088	$	164		$	8,619



	For the Six Months Ended March 31, 2019
	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	(30		)	—			(26		)	(56		)	—		(12		)	(68		)
Recoveries	5			—			106			111			27		86			224
Provision for credit losses	(755		)	(469		)	(203		)	(1,427		)	1,505		(78		)	—
Ending balance	$	2,173		$	1,392		$	802		$	4,367		$	4,088	$	164		$	8,619

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.



	March 31, 2020
	One- to Four-Family
			Correspondent		Bulk
	Originated		Purchased		Purchased		Total		Commercial		Consumer		Total
	(Dollars in thousands)
Recorded investment in loans:
Collectively evaluated for impairment	$	3,951,979	$	2,415,609	$	224,849	$	6,592,437	$	766,443	$	124,936	$	7,483,816
Individually evaluated for impairment	14,406		1,946		4,909		21,261		2,588		336		24,185
	$	3,966,385	$	2,417,555	$	229,758	$	6,613,698	$	769,031	$	125,272	$	7,508,001

ACL for loans:
Collectively evaluated for impairment	$	6,467	$	3,355	$	557	$	10,379	$	20,088	$	489	$	30,956
Individually evaluated for impairment	—		—		—		—		240		—		240
	$	6,467	$	3,355	$	557	$	10,379	$	20,328	$	489	$	31,196



	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
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
Individually evaluated for impairment	—		—		—		—		—		—		—
	$	2,000	$	1,203	$	687	$	3,890	$	5,171	$	165	$	9,226