Regulatory Matters

12 Months Ended

Sep. 30, 2016

Banking and Thrift [Abstract]

Regulatory Matters

Regulatory Matters

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. On January 1, 2015, the Company became subject to Basel III rules, which include transition provisions through January 1, 2019.

The rules include new risk-based capital and leverage ratios and revise the definition of what constitutes "capital" for purposes of calculating those ratios. The minimum capital level requirements applicable to the Company are now: (i) a Tier 1 capital ratio of 6.0%; (ii) a total capital ratio of 8.0%; (iii) a Tier 1 leverage capital ratio of 4.0%; and (iv) a common equity Tier 1 capital ratio of 4.5%. The rules also established a "capital conservation buffer" of 2.5% above the new regulatory minimum capital requirements, which must consist entirely of common equity Tier 1 capital and results in the following minimum ratios: (i) a Tier 1 capital ratio of 8.5%; (ii) a total capital ratio of 10.5%; and (iii) a common equity Tier 1 capital ratio of 7.0%. The capital conservation buffer requirement was phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase by that amount each year until fully implemented in January 2019. An institution would be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions.

The Company met all capital adequacy and net worth requirements to which they are subject as of September 30, 2016 and 2015.

As of September 30, 2016, the most recent notification from the regulatory agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since the most recent notification that management believes have changed the Bank's categories.

As an approved mortgage seller, the Bank is required to maintain a minimum level of capital specified by the United States Department of Housing and Urban Development. At September 30, 2016 and 2015, the Bank met these requirements.

Capital amounts and ratios are presented in the following table:

	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
As of September 30, 2016
Tier 1 risk based capital (to risk-weighted assets):
Consolidated	$	1,001,873	11.1	%	$	541,553	6.0	%	N/A		N/A
Bank	1,023,386		11.3	%	543,391		6.0	%	$	724,521	8.0	%
Total risk based capital (to risk-weighted assets):
Consolidated	1,101,997		12.2	%	722,621		8.0	%	N/A		N/A
Bank	1,088,511		12.0	%	725,674		8.0	%	907,093		10.0	%
Tier 1 leverage capital (to average assets):
Consolidated	1,001,873		9.5	%	421,841		4.0	%	N/A		N/A
Bank	1,023,386		9.7	%	422,015		4.0	%	527,519		5.0	%
Common Equity Tier 1 risk based capital (to risk-weighted assets):
Consolidated	924,718		10.2	%	407,964		4.5	%	N/A		N/A
Bank	$	1,023,386	11.3	%	$	407,543	4.5	%	$	588,673	6.5	%

	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
As of September 30, 2015
Tier 1 risk based capital (to risk-weighted assets):
Consolidated	$	825,211	10.9	%	$	456,338	6.0	%	N/A		N/A
Bank	850,464		11.2	%	455,606		6.0	%	$	607,474	8.0	%
Total risk based capital (to risk-weighted assets):
Consolidated	917,446		12.1	%	608,084		8.0	%	N/A		N/A
Bank	907,700		12.0	%	607,665		8.0	%	759,582		10.0	%
Tier 1 leverage capital (to average assets):
Consolidated	825,211		9.1	%	361,538		4.0	%	N/A		N/A
Bank	850,464		9.4	%	361,131		4.0	%	451,414		5.0	%
Common Equity Tier 1 risk based capital (to risk-weighted assets):
Consolidated	769,128		10.1	%	342,004		4.5	%	N/A		N/A
Bank	$	850,464	11.2	%	$	341,704	4.5	%	$	493,573	6.5	%