Loans Receivable and Allowance for Loan Losses (Tables)

12 Months Ended

Sep. 30, 2016

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Schedule of Loans Receivable and Loans Held for Sale

Loans receivable by portfolio segment consisted of the following at September 30, 2016 and 2015 (dollars in thousands):

	2016		2015
Mortgage loans:
One- to four-family	$	118,560	$	116,664
Multi-family	62,303		52,322
Commercial	312,525		291,216
Construction – custom and owner/builder	93,049		62,954
Construction – speculative one- to four-family	8,106		6,668
Construction – commercial	9,365		20,728
Construction – multi-family	12,590		20,570
Land	21,627		26,140
Total mortgage loans	638,125		597,262
Consumer loans:
Home equity and second mortgage	39,727		34,157
Other	4,139		4,669
Total consumer loans	43,866		38,826
Commercial business loans	41,837		33,763
Total loans receivable	723,828		669,851
Less:
Undisbursed portion of construction loans in process	48,627		53,457
Deferred loan origination fees	2,229		2,193
Allowance for loan losses	9,826		9,924
	60,682		65,574
Loans receivable, net	$	663,146	$	604,277

Schedule of Activity in Related Party Loans

Activity in related party loans during the years ended September 30, 2016, 2015 and 2014 was as follows (dollars in thousands):

	2016			2015			2014
Balance, beginning of year	$	630		$	927		$	1,095
New loans or borrowings	66			112			40
Repayments and reclassifications	(466		)	(409		)	(208		)
Balance, end of year	$	230		$	630		$	927

Schedule of Allowance for Loan Losses

The following table sets forth information for the year ended September 30, 2016 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):

	Beginning Allowance		Provision for (Recapture of) Loan Losses			Charge- offs			Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,480	$	(225	)	$	(72	)	$	56	$	1,239
Multi-family	392		81			—			—		473
Commercial	4,065		528			(209		)	—		4,384
Construction – custom and owner/builder	451		168			—			—		619
Construction – speculative one- to four-family	123		5			—			2		130
Construction – commercial	426		(158		)	—			—		268
Construction – multi-family	283		(148		)	—			181		316
Land	1,021		(164		)	(61		)	24		820
Consumer loans:
Home equity and second mortgage	1,073		(116		)	(18		)	—		939
Other	187		(25		)	(8		)	2		156
Commercial business loans	423		54			—			5		482
Total	$	9,924	$	—		$	(368	)	$	270	$	9,826

The following table sets forth information for the year ended September 30, 2015 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):

	Beginning Allowance		Provision for (Recapture of) Loan Losses			Charge- offs			Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,650	$	(214	)	$	(220	)	$	264	$	1,480
Multi-family	387		2			—			3		392
Commercial	4,836		(775		)	—			4		4,065
Construction – custom and owner/builder	450		1			—			—		451
Construction – speculative one- to four-family	52		69			—			2		123
Construction – commercial	78		348			—			—		426
Construction – multi-family	25		(867		)	—			1,125		283
Land	1,434		(305		)	(145		)	37		1,021
Consumer loans:
Home equity and second mortgage	879		242			(50		)	2		1,073
Other	176		16			(9		)	4		187
Commercial business loans	460		(42		)	—			5		423
Total	$	10,427	$	(1,525	)	$	(424	)	$	1,446	$	9,924

The following table sets forth information for the year ended September 30, 2014 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):

	Beginning Allowance		Provision for (Recapture of) Loan Losses			Charge- offs			Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,449	$	1,113		$	(1,106	)	$	194	$	1,650
Multi-family	749		(362		)	—			—		387
Commercial	5,275		20			(463		)	4		4,836
Construction – custom and owner/builder	262		188			—			—		450
Construction – speculative one- to four-family	96		(44		)	—			—		52
Construction – commercial	56		22			—			—		78
Construction – multi-family	—		(226		)	—			251		25
Construction – land development	—		(287		)	—			287		—
Land	1,940		(664		)	(260		)	418		1,434
Consumer loans:
Home equity and second mortgage	782		137			(47		)	7		879
Other	200		(20		)	(6		)	2		176
Commercial business loans	327		123			(14		)	24		460
Total	$	11,136	$	—		$	(1,896	)	$	1,187	$	10,427

Schedule of Loans Evaluated Individually for Impairment and Collectively Evaluated for Impairment in the Allowance for Loan Losses

The following table presents information on the loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at September 30, 2016 (dollars in thousands):

	Allowance for Loan Losses						Recorded Investment in Loans
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Mortgage loans:
One- to four-family	$	70	$	1,169	$	1,239	$	2,264	$	116,296	$	118,560
Multi-family	—		473		473		—		62,303		62,303
Commercial	413		3,971		4,384		11,309		301,216		312,525
Construction – custom and owner/ builder	—		619		619		367		51,662		52,029
Construction – speculative one- to four-family	—		130		130		—		4,074		4,074
Construction – commercial	—		268		268		—		6,841		6,841
Construction –  multi-family	—		316		316		—		11,539		11,539
Land	53		767		820		1,268		20,359		21,627
Consumer loans:
Home equity and second mortgage	227		712		939		999		38,728		39,727
Other	13		143		156		30		4,109		4,139
Commercial business loans	—		482		482		—		41,837		41,837
Total	$	776	$	9,050	$	9,826	$	16,237	$	658,964	$	675,201

The following table presents information on the loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at September 30, 2015 (dollars in thousands):

	Allowance for Loan Losses						Recorded Investment in Loans
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Mortgage loans:
One- to four-family	$	307	$	1,173	$	1,480	$	4,291	$	112,373	$	116,664
Multi-family	16		376		392		4,037		48,285		52,322
Commercial	265		3,800		4,065		12,852		278,364		291,216
Construction – custom and owner/ builder	—		451		451		—		36,192		36,192
Construction – speculative one- to four-family	—		123		123		—		3,781		3,781
Construction – commercial	—		426		426		—		12,200		12,200
Construction –  multi-family	—		283		283		—		5,290		5,290
Land	37		984		1,021		2,305		23,835		26,140
Consumer loans:
Home equity and second mortgage	362		711		1,073		910		33,247		34,157
Other	24		163		187		36		4,633		4,669
Commercial business loans	—		423		423		—		33,763		33,763
Total	$	1,011	$	8,913	$	9,924	$	24,431	$	591,963	$	616,394

Past Due Status of Loans Receivable

The following table presents an analysis of loans by aging category and portfolio segment at September 30, 2016 (dollars in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Non- Accrual(1)		Past Due 90 Days or More and Still Accruing		Total Past Due		Current		Total Loans
Mortgage loans:
One- to four-family	$	—	$	207	$	914	$	—	$	1,121	$	117,439	$	118,560
Multi-family	—		—		—		—		—		62,303		62,303
Commercial	113		—		612		—		725		311,800		312,525
Construction – custom and owner/ builder	—		—		367		—		367		51,662		52,029
Construction – speculative one- to four-family	—		—		—		—		—		4,074		4,074
Construction – commercial	—		—		—		—		—		6,841		6,841
Construction –  multi-family	—		—		—		—		—		11,539		11,539
Land	—		—		548		—		548		21,079		21,627
Consumer loans:
Home equity and second mortgage	37		—		402		135		574		39,153		39,727
Other	31		—		30		—		61		4,078		4,139
Commercial business loans	37		38		—		—		75		41,762		41,837
Total	$	218	$	245	$	2,873	$	135	$	3,471	$	671,730	$	675,201

__________________

(1) Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual.

The following table presents an analysis of loans by aging category and portfolio segment at September 30, 2015 (dollars in thousands):

	30-59 Days Past Due		60-89 Days Past Due		Non- Accrual(1)		Past Due 90 Days or More and Still Accruing		Total Past Due		Current		Total Loans
Mortgage loans:
One- to four-family	$	—	$	425	$	2,368	$	—	$	2,793	$	113,871	$	116,664
Multi-family	—		—		760		—		760		51,562		52,322
Commercial	—		—		1,016		—		1,016		290,200		291,216
Construction – custom and owner/ builder	—		345		—		—		345		35,847		36,192
Construction – speculative one- to four-family	—		—		—		—		—		3,781		3,781
Construction – commercial	—		—		—		—		—		12,200		12,200
Construction –  multi-family	—		—		—		—		—		5,290		5,290
Land	15		32		1,558		—		1,605		24,535		26,140
Consumer loans:
Home equity and second mortgage	146		14		303		151		614		33,543		34,157
Other	—		—		35		—		35		4,634		4,669
Commercial business loans	—		—		—		—		—		33,763		33,763
Total	$	161	$	816	$	6,040	$	151	$	7,168	$	609,226	$	616,394

___________________

(1)     Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual.

Financing Receivable Credit Quality Indicators

The following table presents an analysis of loans by credit quality indicators and portfolio segment, at September 30, 2016 (dollars in thousands).

	Loan Grades
	Pass		Watch		Special Mention		Substandard		Total
Mortgage loans:
One- to four-family	$	115,131	$	364	$	661	$	2,404	$	118,560
Multi-family	60,504		—		1,799		—		62,303
Commercial	292,756		8,411		10,746		612		312,525
Construction – custom and owner / builder	51,432		229		—		368		52,029
Construction – speculative one- to four-family	4,074		—		—		—		4,074
Construction – commercial	6,841		—		—		—		6,841
Construction – multi-family	11,539		—		—		—		11,539
Land	18,010		1,043		1,859		715		21,627
Consumer loans:
Home equity and second mortgage	38,261		590		—		876		39,727
Other	4,078		—		—		61		4,139
Commercial business loans	41,797		40		—		—		41,837
Total	$	644,423	$	10,677	$	15,065	$	5,036	$	675,201

The following table presents an analysis of loans by credit quality indicators and portfolio segment, at September 30, 2015 (dollars in thousands):

	Loan Grades
	Pass		Watch		Special Mention		Substandard		Total
Mortgage loans:
One- to four-family	$	111,351	$	653	$	1,339	$	3,321	$	116,664
Multi-family	45,249		—		6,313		760		52,322
Commercial	270,685		8,040		6,803		5,688		291,216
Construction – custom and owner / builder	36,192		—		—		—		36,192
Construction – speculative one- to four-family	3,781		—		—		—		3,781
Construction – commercial	12,200		—		—		—		12,200
Construction – multi-family	5,290		—		—		—		5,290
Land	20,964		1,105		2,078		1,993		26,140
Consumer loans:
Home equity and second mortgage	32,172		664		404		917		34,157
Other	4,631		—		—		38		4,669
Commercial business loans	33,635		49		79		—		33,763
Total	$	576,150	$	10,511	$	17,016	$	12,717	$	616,394

Impaired Financing Receivables

The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2016 (dollars in thousands):

	September 30, 2016						For the Year Ended September 30, 2016
	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Income Recognized
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	914	$	1,060	$	—	$	1,349	$	38	$	38
Multi-family	—		—		—		152		—		—
Commercial	7,566		8,685		—		7,784		421		330
Construction – custom and owner / builder	367		367		—		73		—		—
Land	693		1,101		—		839		16		12
Consumer loans:
Home equity and second mortgage	402		593		—		264		—		—
Commercial business loans	—		—		—		15		—		—
Subtotal	9,942		11,806		—		10,476		475		380
With an allowance recorded:
Mortgage loans:
One- to four-family	1,350		1,350		70		1,921		118		89
Multi-family	—		—		—		655		—		—
Commercial	3,743		3,743		413		4,181		275		215
Land	575		575		53		604		39		32
Consumer loans:
Home equity and second mortgage	597		597		227		709		44		40
Other	30		30		13		33		2		2
Subtotal	6,295		6,295		776		8,103		478		378
Total:
Mortgage loans:
One- to four-family	2,264		2,410		70		3,270		156		127
Multi-family	—		—		—		807		—		—
Commercial	11,309		12,428		413		11,965		696		545
Construction – custom and owner / builder	367		367		—		73		—		—
Land	1,268		1,676		53		1,443		55		44
Consumer loans:
Home equity and second mortgage	999		1,190		227		973		44		40
Other	30		30		13		33		2		2
Commercial business loans	—		—		—		15		—		—
Total	$	16,237	$	18,101	$	776	$	18,579	$	953	$	758

The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2015 (dollars in thousands):

	September 30, 2015						For the Year Ended September 30, 2015
	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Income Recognized
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	1,321	$	1,546	$	—	$	1,919	$	25	$	25
Multi-family	760		791		—		570		3		3
Commercial	7,199		8,259		—		9,078		521		412
Construction – custom and owner / builder	—		—		—		118		—		—
Land	1,614		2,150		—		1,028		25		20
Consumer loans:
Home equity and second mortgage	165		381		—		270		—		—
Commercial business loans	—		6		—		—		—		—
Subtotal	11,059		13,133		—		12,983		574		460
With an allowance recorded:
Mortgage loans:
One- to four-family	2,970		2,970		307		3,833		149		112
Multi-family	3,277		3,277		16		3,291		184		137
Commercial	5,653		5,653		265		3,475		202		152
Construction – custom and owner / builder	—		—		—		17		—		—
Land	691		691		37		3,298		32		27
Consumer loans:
Home equity and second mortgage	745		745		362		516		18		15
Other	36		36		24		28		—		—
Subtotal	13,372		13,372		1,011		14,458		585		443
Total
Mortgage loans:
One- to four-family	4,291		4,516		307		5,752		174		137
Multi-family	4,037		4,068		16		3,861		187		140
Commercial	12,852		13,912		265		12,553		723		564
Construction – custom and owner / builder	—		—		—		135		—		—
Land	2,305		2,841		37		4,326		57		47
Consumer loans:
Home equity and second mortgage	910		1,126		362		786		18		15
Other	36		36		24		28		—		—
Commercial business loans	—		6		—		—		—		—
Total	$	24,431	$	26,505	$	1,011	$	27,441	$	1,159	$	903

The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2014 (dollars in thousands):

	September 30, 2014						For the Year Ended September 30, 2014
	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Income Recognized
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	2,647	$	3,301	$	—	$	3,763	$	—	$	—
Multi-family	—		857		—		—		—		—
Commercial	11,057		14,184		—		7,859		414		325
Construction – multi-family	—		—		—		57		—		—
Construction – land development	—		—		—		141		—		—
Land	1,079		1,674		—		1,044		12		10
Consumer loans:
Home equity and second mortgage	351		574		—		276		—		—
Other	3		3		—		7		—		—
Commercial business loans	—		10		—		22		—		—
Subtotal	15,137		20,603		—		13,169		426		335
With an allowance recorded:
Mortgage loans:
One- to four-family	4,364		4,364		709		4,140		146		110
Multi-family	3,317		3,317		39		4,157		220		165
Commercial	6,131		6,131		797		10,083		541		423
Construction – speculative one- to four-family	—		—		—		275		11		7
Land	4,079		4,079		300		3,780		18		16
Consumer loans:
Home equity and second mortgage	446		446		162		404		16		12
Subtotal	18,337		18,337		2,007		22,839		952		733
Total
Mortgage loans:
One- to four-family	7,011		7,665		709		7,903		146		110
Multi-family	3,317		4,174		39		4,157		220		165
Commercial	17,188		20,315		797		17,942		955		748
Construction – speculative one- to four-family	—		—		—		275		11		7
Construction – multi-family	—		—		—		57		—		—
Construction – land development	—		—		—		141		—		—
Land	5,158		5,753		300		4,824		30		26
Consumer loans:
Home equity and second mortgage	797		1,020		162		680		16		12
Other	3		3		—		7		—		—
Commercial business loans	—		10		—		22		—		—
Total	$	33,474	$	38,940	$	2,007	$	36,008	$	1,378	$	1,068

Schedule of Troubled Debt Restructuring Loans by Interest Accrual Status

The following tables set forth information with respect to the Company’s TDRs by interest accrual status as of September 30, 2016 and 2015 (dollars in thousands):

	2016
	Accruing		Non- Accrual		Total
Mortgage loans:
One- to four-family	$	1,350	$	126	$	1,476
Commercial	5,268		—		5,268
Land	720		253		973
Consumer loans:
Home equity and second mortgage	291		152		443
Total	$	7,629	$	531	$	8,160

	2015
	Accruing		Non- Accrual		Total
Mortgage loans:
One- to four-family	$	1,929	$	826	$	2,755
Multi-family	3,277		—		3,277
Commercial	6,237		—		6,237
Land	747		255		1,002
Consumer loans:
Home equity and second mortgage	295		152		447
Total	$	12,485	$	1,233	$	13,718

Troubled Debt Restructurings on Financing Receivables

The following table sets forth information with respect to the Company’s loans, by portfolio segment, which were modified in troubled debt restructurings during the years ended September 30, 2015 and 2014 (dollars in thousands):

2015	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		End of Period Balance
One- to four-family	1	$	48	$	48	$	48
Total	1	$	48	$	48	$	48
2014
One- to four-family	1	$	42	$	42	$	42
Land	1	157		157		153
Total	2	$	199	$	199	$	195