Significant Concentrations of Credit Risk

12 Months Ended

Sep. 30, 2015

Risks and Uncertainties [Abstract]

Significant Concentrations of Credit Risk

Significant Concentrations of Credit Risk

Most of the Company’s lending activity is with customers located in the state of Washington and involves real estate.  At September 30, 2015, the Company had $634,470,000 (including $53,457,000 of undisbursed construction loans in process) in loans secured by real estate, which represents 94.3% of total loans and loans held for sale.  The real estate loan portfolio is primarily secured by one- to four-family properties, multi-family properties, undeveloped land, and a variety of commercial real estate property types.  At September 30, 2015, there were no concentrations of real estate loans to a specific industry or secured by a specific collateral type that equaled or exceeded 20% of the Company’s total loan portfolio, other than loans secured by one-to four-family properties.  The ultimate collectability of a substantial portion of the loan portfolio is susceptible to changes in economic and market conditions in the region and the impact of those changes on the real estate market.  The Company typically originates real estate loans with loan-to-value ratios of no greater than 90%.  Collateral and/or guarantees are required for all loans.  The Company also had $48,611,000 in CDs held for investment at September 30, 2015.  The CDs are held with various FDIC insured institutions throughout the U.S., and each CD is below the FDIC insurance limit of $250,000.