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Allowance for Losses on Loans (Tables)
 9 Months Ended
Jun. 30, 2017
Receivables [Abstract]  
Summary of Activity in Allowance for Loan Losses
The following tables summarize the activity in the allowance for loan losses. 

Three Months Ended June 30, 2017
Beginning
Allowance
 
Charge-offs
 
Recoveries
 
Provision &
Transfers
 
Ending
Allowance
 
(In thousands)
Single-family residential
$
37,164

 
$
(267
)
 
$
81

 
$
1,133

 
$
38,111

Construction
25,061

 
—

 
—

 
(3,195
)
 
21,866

Construction - custom
1,176

 
—

 
—

 
714

 
1,890

Land - acquisition & development
6,669

 
—

 
863

 
(315
)
 
7,217

Land - consumer lot loans
2,513

 
—

 
118

 
(83
)
 
2,548

Multi-family
7,929

 
—

 
—

 
(17
)
 
7,912

Commercial real estate
10,772

 
—

 
164

 
411

 
11,347

Commercial & industrial
28,365

 
—

 
154

 
653

 
29,172

HELOC
826

 
—

 
1

 
50

 
877

Consumer
1,447

 
(144
)
 
282

 
(296
)
 
1,289

 
$
121,922

 
$
(411
)
 
$
1,663

 
$
(945
)
 
$
122,229


Three Months Ended June 30, 2016
Beginning
Allowance
 
Charge-offs
 
Recoveries
 
Provision &
Transfers
 
Ending
Allowance
 
(In thousands)
Single-family residential
$
41,828

 
$
(634
)
 
$
162

 
$
(675
)
 
$
40,681

Construction
15,726

 
—

 
207

 
1,729

 
17,662

Construction - custom
1,022

 
—

 
60

 
(54
)
 
1,028

Land - acquisition & development
7,252

 
(31
)
 
2,741

 
(3,240
)
 
6,722

Land - consumer lot loans
2,466

 
(26
)
 
5

 
59

 
2,504

Multi-family
6,784

 
—

 
—

 
137

 
6,921

Commercial real estate
7,783

 
—

 
454

 
(94
)
 
8,143

Commercial & industrial
23,824

 
(150
)
 
6

 
716

 
24,396

HELOC
828

 
(27
)
 
—

 
55

 
856

Consumer
2,406

 
(307
)
 
437

 
(433
)
 
2,103

 
$
109,919

 
$
(1,175
)
 
$
4,072

 
$
(1,800
)
 
$
111,016


Nine Months Ended June 30, 2017
Beginning
Allowance
 
Charge-offs
 
Recoveries
 
Provision &
Transfers
 
Ending
Allowance
 
(In thousands)
Single-family residential
$
37,796

 
$
(763
)
 
$
455

 
$
623

 
$
38,111

Construction
19,838

 
—

 
—

 
2,028

 
21,866

Construction - custom
1,080

 
(3
)
 
—

 
813

 
1,890

Land - acquisition & development
6,023

 
(63
)
 
9,092

 
(7,835
)
 
7,217

Land - consumer lot loans
2,535

 
(17
)
 
368

 
(338
)
 
2,548

Multi-family
6,925

 
—

 
—

 
987

 
7,912

Commercial real estate
8,588

 
(11
)
 
1,684

 
1,086

 
11,347

Commercial & industrial
28,008

 
(163
)
 
1,096

 
231

 
29,172

HELOC
813

 
(90
)
 
2

 
152

 
877

Consumer
1,888

 
(798
)
 
975

 
(776
)
 
1,289

 
$
113,494

 
$
(1,908
)
 
$
13,672

 
$
(3,029
)
 
$
122,229

Nine Months Ended June 30, 2016
Beginning
Allowance
 
Charge-offs
 
Recoveries
 
Provision &
Transfers
 
Ending
Allowance
 
(In thousands)
Single-family residential
$
47,347

 
$
(2,800
)
 
$
2,739

 
$
(6,605
)
 
$
40,681

Construction
6,680

 
—

 
357

 
10,625

 
17,662

Construction - custom
990

 
(60
)
 
60

 
38

 
1,028

Land - acquisition & development
5,781

 
(31
)
 
6,148

 
(5,176
)
 
6,722

Land - consumer lot loans
2,946

 
(701
)
 
5

 
254

 
2,504

Multi-family
5,304

 
—

 
—

 
1,617

 
6,921

Commercial real estate
8,960

 
(32
)
 
1,569

 
(2,354
)
 
8,143

Commercial & industrial
24,980

 
(729
)
 
597

 
(452
)
 
24,396

HELOC
902

 
(54
)
 
21

 
(13
)
 
856

Consumer
2,939

 
(827
)
 
1,226

 
(1,235
)
 
2,103

 
$
106,829

 
$
(5,234
)
 
$
12,722

 
$
(3,301
)
 
$
111,016
Summary of Loans Collectively and Individually Evaluated for Impairment and Related Allocation of Reserves
The following tables show loans collectively and individually evaluated for impairment and the related allocation of general and specific reserves.
 
June 30, 2017
Loans Collectively Evaluated for Impairment
 
Loans Individually Evaluated for Impairment
 
Allowance Allocation
 
Recorded Investment of Loans (1)
 
Ratio
 
Allowance Allocation
 
Recorded Investment of Loans (1)
 
Ratio
 
(In thousands)
 
 
 
(In thousands)
Single-family residential
$
38,111

 
$
5,691,480

 
0.7
%
 
$
—

 
$
5,728

 
—
%
Construction
21,866

 
683,273

 
3.2

 
—

 
—

 
—

Construction - custom
1,890

 
269,508

 
0.7

 
—

 
105

 
—

Land - acquisition & development
7,215

 
110,709

 
6.5

 
2

 
189

 
1.1

Land - consumer lot loans
2,548

 
92,657

 
2.7

 
—

 
177

 
—

Multi-family
7,908

 
1,262,646

 
0.6

 
4

 
497

 
0.8

Commercial real estate
11,214

 
1,302,211

 
0.9

 
133

 
17,162

 
0.8

Commercial & industrial
29,172

 
1,116,745

 
2.6

 
—

 
34

 
—

HELOC
877

 
145,675

 
0.6

 
—

 
215

 
—

Consumer
1,289

 
95,666

 
1.3

 
—

 
—

 
—

 
$
122,090

 
$
10,770,570

 
1.1
%
 
$
139

 
$
24,107

 
0.6
%
(1)
Excludes $28 million in acquired loans with discounts sufficient to cover incurred losses.
September 30, 2016
Loans Collectively Evaluated for Impairment
 
Loans Individually Evaluated for Impairment
 
Allowance Allocation
 
Recorded Investment of Loans (1)
 
Ratio
 
Allowance Allocation
 
Recorded Investment of Loans (1)
 
Ratio
 
(In thousands)
 
 
 
(In thousands)
Single-family residential
$
37,536

 
$
5,585,912

 
0.7
%
 
$
260

 
$
19,629

 
1.3
%
Construction
19,838

 
498,450

 
4.0

 
—

 
—

 
—

Construction - custom
1,080

 
229,298

 
0.5

 
—

 
330

 
—

Land - acquisition & development
6,022

 
90,850

 
6.6

 
2

 
850

 
0.2

Land - consumer lot loans
2,535

 
92,828

 
2.7

 
—

 
558

 
—

Multi-family
6,911

 
1,091,974

 
0.6

 
13

 
1,505

 
0.9

Commercial real estate
8,497

 
957,380

 
0.9

 
91

 
11,157

 
0.8

Commercial & industrial
28,008

 
966,930

 
2.9

 
—

 
—

 
—

HELOC
813

 
133,203

 
0.6

 
—

 
239

 
—

Consumer
1,888

 
137,315

 
1.4

 
—

 
3

 
—

 
$
113,128

 
$
9,784,140

 
1.2
%
 
$
366

 
$
34,271

 
1.1
%

(1) Excludes $214 million in acquired impaired loans and covered loans with discounts sufficient to cover incurred losses.
Summary of Loans Based on Credit Quality Indicators
The following tables provide information on loans based on risk rating categories as defined above.
June 30, 2017
Internally Assigned Grade
 
 
 
Pass
 
Special mention
 
Substandard
 
Doubtful
 
Loss
 
Total Gross Loans
 
(In thousands)
Loan type
 
 
 
 
 
 
 
 
 
 
 
  Single-family residential
$
5,642,507

 
$
—

 
$
45,343

 
$
—

 
$
—

 
$
5,687,850

  Construction
1,427,443

 
5,876

 
3,555

 
—

 
—

 
1,436,874

  Construction - custom
560,724

 
—

 
536

 
—

 
—

 
561,260

  Land - acquisition & development
117,004

 
207

 
2,313

 
—

 
—

 
119,524

  Land - consumer lot loans
100,436

 
—

 
1,190

 
—

 
—

 
101,626

  Multi-family
1,248,315

 
3,191

 
11,681

 
—

 
—

 
1,263,187

  Commercial real estate
1,305,769

 
4,303

 
35,934

 
—

 
—

 
1,346,006

  Commercial & industrial
1,083,039

 
20,450

 
13,371

 
—

 
—

 
1,116,860

  HELOC
148,063

 
—

 
521

 
—

 
—

 
148,584

  Consumer
95,748

 
—

 
27

 
—

 
—

 
95,775

Total gross loans
$
11,729,048

 
$
34,027

 
$
114,471

 
$
—

 
$
—

 
$
11,877,546

 
 
 
 
 
 
 
 
 
 
 
 
Total grade as a % of total gross loans
98.7
%
 
0.3
%
 
1.0
%
 
—
%
 
—
%
 
 

September 30, 2016
Internally Assigned Grade
 
 
 
Pass
 
Special mention
 
Substandard
 
Doubtful
 
Loss
 
Total Gross Loans
 
(In thousands)
Loan type
 
 
 
 
 
 
 
 
 
 
 
 Single-family residential
$
5,607,521

 
$
—

 
$
51,309

 
$
—

 
$
—

 
$
5,658,830

 Construction
1,098,549

 
8,595

 
3,267

 
—

 
—

 
1,110,411

 Construction - custom
473,069

 
—

 
—

 
—

 
—

 
473,069

 Land - acquisition & development
111,225

 
—

 
7,272

 
—

 
—

 
118,497

 Land - consumer lot loans
103,528

 
—

 
1,039

 
—

 
—

 
104,567

 Multi-family
1,117,437

 
3,237

 
3,616

 
—

 
—

 
1,124,290

 Commercial real estate
1,033,880

 
13,446

 
46,313

 
—

 
—

 
1,093,639

 Commercial & industrial
930,776

 
7,207

 
40,606

 
—

 
—

 
978,589

 HELOC
149,195

 
—

 
521

 
—

 
—

 
149,716

 Consumer
138,917

 
—

 
83

 
—

 
—

 
139,000

Total gross loans
$
10,764,097

 
$
32,485

 
$
154,026

 
$
—

 
$
—

 
$
10,950,608

 
 
 
 
 
 
 
 
 
 
 
 
Total grade as a % of total gross loans
98.3
%
 
0.3
%
 
1.4
%
 
—
%
 
—
%
 
 

The balance of loans internally graded as 'substandard' above includes $23,299,000 as of June 30, 2017 and $35,910,000 as of September 30, 2016 of acquired loans and covered loans.

The following tables provide information on gross loans based on borrower payment activity.
June 30, 2017
Performing Loans
 
Non-Performing Loans
 
Amount
 
% of Total
Gross  Loans
 
Amount
 
% of Total
Gross  Loans
 
(In thousands)
Single-family residential
$
5,655,238

 
99.4
%
 
$
32,613

 
0.6
%
Construction
1,436,873

 
100.0

 
—

 
—

Construction - custom
560,724

 
99.9

 
536

 
0.1

Land - acquisition & development
119,453

 
99.9

 
71

 
0.1

Land - consumer lot loans
100,560

 
99.0

 
1,066

 
1.0

Multi-family
1,262,505

 
99.9

 
682

 
0.1

Commercial real estate
1,333,023

 
99.0

 
12,983

 
1.0

Commercial & industrial
1,108,606

 
99.3

 
8,254

 
0.7

HELOC
148,403

 
99.9

 
181

 
0.1

Consumer
95,753

 
99.9

 
22

 
0.1

 
$
11,821,138

 
99.5
%
 
$
56,408

 
0.5
%

September 30, 2016
Performing Loans
 
Non-Performing Loans
 
Amount
 
% of Total
Gross  Loans
 
Amount
 
% of Total
Gross  Loans
 
(In thousands)
Single-family residential
$
5,625,682

 
99.4
%
 
$
33,148

 
0.6
%
Construction
1,110,411

 
100.0

 
—

 
—

Construction - custom
473,069

 
100.0

 
—

 
—

Land - acquisition & development
118,439

 
99.9

 
58

 
0.1

Land - consumer lot loans
104,057

 
99.5

 
510

 
0.5

Multi-family
1,123,583

 
99.9

 
776

 
0.1

Commercial real estate
1,086,470

 
99.3

 
7,100

 
0.7

Commercial & industrial
978,006

 
99.9

 
583

 
0.1

HELOC
149,477

 
99.8

 
239

 
0.2

Consumer
139,000

 
100.0

 
—

 
—

 
$
10,908,194

 
99.6
%
 
$
42,414

 
0.4
%
Summary of Impaired Loans Based on Type
The following tables provide information on impaired loan balances and the related allowances by loan types. 
 
 
 
 
 
 
 
 
June 30, 2017
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average Recorded Investment
 
(In thousands)
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
Single-family residential
$
24,487

 
$
26,942

 
$
—

 
$
17,683

Construction - custom
711

 
715

 
—

 
436

Land - acquisition & development
123

 
8,234

 
—

 
123

Land - consumer lot loans
212

 
332

 
—

 
214

Multi-family
682

 
3,954

 
—

 
915

Commercial real estate
11,371

 
19,725

 
—

 
10,417

Commercial & industrial
8,529

 
14,659

 
—

 
8,440

HELOC
251

 
1,363

 
—

 
277

Consumer
19

 
1,499

 
—

 
34

 
46,385

 
77,423

 
—

 
38,539

Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
Single-family residential
196,489

 
200,820

 
4,761

 
196,739

Land - acquisition & development
190

 
190

 
2

 
237

Land - consumer lot loans
8,837

 
9,542

 
—

 
9,061

Multi-family
497

 
497

 
4

 
505

Commercial real estate
15,907

 
17,505

 
133

 
16,002

Commercial & industrial
127

 
127

 
—

 
127

HELOC
1,409

 
1,484

 
—

 
1,411

Consumer
102

 
289

 
—

 
105

 
223,558

 
230,454

 
4,900

(1)
224,187

Total impaired loans:
 
 
 
 
 
 
 
Single-family residential
220,976

 
227,762

 
4,761

 
214,422

Construction - custom
711

 
715

 
—

 
436

Land - acquisition & development
313

 
8,424

 
2

 
360

Land - consumer lot loans
9,049

 
9,874

 
—

 
9,275

Multi-family
1,179

 
4,451

 
4

 
1,420

Commercial real estate
27,278

 
37,230

 
133

 
26,419

Commercial & industrial
8,656

 
14,786

 
—

 
8,567

HELOC
1,660

 
2,847

 
—

 
1,688

Consumer
121

 
1,788

 
—

 
139

 
$
269,943

 
$
307,877

 
$
4,900

(1)
$
262,726



(1)
Includes $139,000 of specific reserves and $4,761,000 included in the general reserves.


September 30, 2016
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
(In thousands)
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
Single-family residential
$
9,627

 
$
11,366

 
$
—

 
$
6,511

Land - acquisition & development
138

 
9,001

 
—

 
614

Land - consumer lot loans
499

 
609

 
—

 
317

Multi-family
394

 
3,972

 
—

 
638

Commercial real estate
11,741

 
21,301

 
—

 
6,260

Commercial & industrial
1,030

 
3,082

 
—

 
863

HELOC
209

 
315

 
—

 
165

Consumer
74

 
550

 
—

 
111

 
23,712

 
50,196

 
—

 
15,479

Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
Single-family residential
228,186

 
232,595

 
3,809

 
216,632

Land - acquisition & development
1,154

 
2,094

 
1

 
1,766

Land - consumer lot loans
9,630

 
10,678

 
1

 
9,548

Multi-family
1,505

 
1,505

 
13

 
1,522

Commercial real estate
19,434

 
22,848

 
91

 
19,311

HELOC
1,506

 
1,521

 
—

 
1,413

Consumer
116

 
306

 
—

 
100

 
261,531

 
271,547

 
3,915

(1)
250,292

Total impaired loans:
 
 
 
 
 
 
 
Single-family residential
237,813

 
243,961

 
3,809

 
223,143

Land - acquisition & development
1,292

 
11,095

 
1

 
2,380

Land - consumer lot loans
10,129

 
11,287

 
1

 
9,865

Multi-family
1,899

 
5,477

 
13

 
2,160

Commercial real estate
31,175

 
44,149

 
91

 
25,571

Commercial & industrial
1,030

 
3,082

 
—

 
863

HELOC
1,715

 
1,836

 
—

 
1,578

Consumer
190

 
856

 
—

 
211

 
$
285,243

 
$
321,743

 
$
3,915

(1)
$
265,771


(1)
Includes $366,000 of specific reserves and $3,549,000 included in the general reserves