Loans Receivable, Net and Allowance for Loan Losses (Tables)

6 Months Ended

Mar. 31, 2015

Loans receivable consist of the following (in thousands):


	March 31, 2015		September 30, 2014
Real estate loans:
Residential	$	629,034	$	654,152
Construction		1,489		1,367
Commercial		197,137		190,536
Commercial		36,923		25,807
Obligations of states and political subdivisions		47,054		49,177
Home equity loans and lines of credit		40,857		41,387
Auto Loans		131,570		100,571
Other		3,099		3,904

		1,087,163		1,066,901
Less allowance for loan losses		8,668		8,634

Net loans	$	1,078,495	$	1,058,267

Schedule of Loans Evaluated for Impairment

Individually Evaluated for Impairment			Loans Acquired with Deteriorated Credit Quality			Collectively Evaluated for Impairment
March 31, 2015
Real estate loans:
Residential	$	629,034		$	12,057		$	110	$	616,867
Construction		1,489			—			—		1,489
Commercial		197,137			16,281			4,504		176,352
Commercial		36,923			234			96		36,593
Obligations of states and political subdivisions		47,054			—			—		47,054
Home equity loans and lines of credit		40,857			430			—		40,427
Auto loans		131,570			190			—		131,380
Other		3,099			—			—		3,099

Total	$	1,087,163		$	29,192		$	4,710	$	1,053,261


	Total Loans		Individually Evaluated for Impairment		Loans Acquired with Deteriorated Credit Quality			Collectively Evaluated for Impairment

September 30, 2014
Real estate loans:

Residential	$	654,152	$	13,528	$	110		$	640,514
Construction		1,367		—		—			1,367
Commercial		190,536		17,517		4,727			168,292
Commercial		25,807		456		263			25,088
Obligations of states and political subdivisions		49,177		—		—			49,177
Home equity loans and lines of credit		41,387		266		(3	)		41,124
Auto loans		100,571		101		—			100,470
Other		3,904		—		—			3,904

Total	$	1,066,901	$	31,868	$	5,097		$	1,029,936

Schedule of Investment and Unpaid Principal Balances for Impaired Loans

The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable (in thousands).


	Recorded Investment		Unpaid Principal Balance		Associated Allowance
March 31, 2015
With no specific allowance recorded:
Real estate loans
Residential	$	9,715	$	11,523	$	—
Construction		—		—		—
Commercial		20,637		21,864		—
Commercial		330		341		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		389		391		—
Auto loans		166		230		—
Other		—		—		—


Total		31,237		34,349		—


With an allowance recorded:
Real estate loans
Residential		2,452		2,729		280
Construction		—		—		—
Commercial		148		175		4
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		41		66		40
Auto loans		24		24		12
Other		—		—		—


Total		2,665		2,994		336


Total:
Real estate loans
Residential		12,167		14,252		280
Construction		—		—		—
Commercial		20,785		22,039		4
Commercial		330		341		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		430		457		40
Auto loans		190		254		12
Other		—		—		—


Total Impaired Loans	$	33,902	$	37,343	$	336


	Recorded Investment		Unpaid Principal Balance		Associated Allowance
September 30, 2014
With no specific allowance recorded:
Real Estate Loans
Residential	$	11,030	$	13,225	$	—
Construction		—		—		—
Commercial		21,587		22,428		—
Commercial		719		777		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		210		377		—
Auto Loans		101		101		—
Other		—		—		—


Total		33,647		36,908		—


With an allowance recorded:
Real Estate Loans
Residential		2,608		2,997		334
Construction		—		—		—
Commercial		657		677		84
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		53		76		50
Auto Loans		—		—		—
Other		—		—		—


Total		3,318		3,750		468


Total:
Real Estate Loans
Residential		13,638		16,222		334
Construction		—		—		—
Commercial		22,244		23,105		84
Commercial		719		777		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		263		453		50
Auto Loans		101		101		—
Other		—		—		—


Total Impaired Loans	$	36,965	$	40,658	$	468

The following table represents the average recorded investments in the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired (in thousands).


	Three months ended
	March 31,
	2015		2014		2015		2014
	Average Recorded Investment		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized

With no specific allowance recorded:
Real estate loans
Residential	$	10,551	$	9,630	$	64	$	94
Construction		—		—		—		—
Commercial		21,044		21,144		190		183
Commercial		454		1,211		2		3
Obligations of states and political subdivisions		—		—		—		—
Home equity loans and lines of credit		286		300		—		—
Auto loans		55		—		1		—
Other		—		—		—		—


Total		32,390		32,285		257		280


With an allowance recorded:
Real estate loans
Residential		2,411		3,468		19		23
Construction		—		—		—		—
Commercial		313		1,896		—		—
Commercial		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—
Home equity loans and lines of credit		39		13		—		—
Auto loans		67		—		1		—
Other		—		—		—		—


Total		2,830		5,377		20		23


Total:
Real estate loans
Residential		12,962		13,098		83		117
Construction		—		—		—		—
Commercial		21,357		23,040		190		183
Commercial		454		1,211		2		3
Obligations of states and political subdivisions		—		—		—		—
Home equity loans and lines of credit		325		313		—		—
Auto loans		122		—		2		—
Other		—		—		—		—


Total Impaired Loans	$	35,220	$	37,662	$	277	$	303


	Six months ended
	March 31,
	2015		2014		2015		2014
	Average Recorded Investment		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized

With no specific allowance recorded:
Real estate loans
Residential	$	10,740	$	9,855	$	163	$	150
Construction		—		—		—		—
Commercial		21,017		20,041		384		374
Commercial		672		1,002		4		6
Obligations of states and political subdivisions		—		—		—		—
Home equity loans and lines of credit		244		319		2		2
Auto loans		53		—		1		—
Other		—		—		—		—


Total		32,726		31,217		554		532


With an allowance recorded:
Real estate loans
Residential		2,453		3,235		43		58
Construction		—		—		—		—
Commercial		442		2,355		—		—
Commercial		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—
Home equity loans and lines of credit		26		6		—		—
Auto loans		101		—		3		—
Other		—		—		—		—


Total		3,022		5,596		46		58


Total:
Real estate loans
Residential		13,193		13,090		206		208
Construction		—		—		—		—
Commercial		21,459		22,396		384		374
Commercial		672		1,002		4		6
Obligations of states and political subdivisions		—		—		—		—
Home equity loans and lines of credit		270		325		2		2
Auto loans		154		—		4		—
Other		—		—		—		—


Total Impaired Loans	$	35,748	$	36,813	$	600	$	590

Classes of Loan Portfolio, Internal Risk Rating System

The following tables present the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of March 31, 2015 and September 30, 2014 (in thousands):


	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2015
Commercial real estate loans	$	169,768	$	5,253	$	21,823	$	293	$	197,137
Commercial		36,394		97		432		—		36,923
Obligations of states and political subdivisions		47,054		—		—		—		47,054


Total	$	253,216	$	5,350	$	22,255	$	293	$	281,114


	Pass		Special Mention		Substandard		Doubtful		Total
September 30, 2014
Commercial real estate loans	$	160,749	$	8,020	$	21,469	$	298	$	190,536
Commercial		24,874		345		588		—		25,807
Obligations of states and political subdivisions		49,177		—		—		—		49,177


Total	$	234,800	$	8,365	$	22,057	$	298	$	265,520

Schedule of Performing or Nonperforming Loans

The following tables present the risk ratings in the consumer categories of performing and non-performing loans at March 31, 2015 and September 30, 2014 (in thousands):


	Performing		Non-performing		Total
March 31, 2015
Real estate loans:
Residential	$	618,364	$	10,670	$	629,034
Construction		1,489		—		1,489
Home equity loans and lines of credit		40,446		411		40,857
Auto loans		131,396		174		131,570
Other		3,087		12		3,099


Total	$	794,782	$	11,267	$	806,049


	Performing		Non-performing		Total
September 30, 2014
Real estate loans:
Residential	$	644,374	$	9,778	$	654,152
Construction		1,367		—		1,367
Home equity loans and lines of credit		41,128		259		41,387
Auto loans		100,571		—		100,571
Other		3,884		20		3,904


Total	$	791,324	$	10,057	$	801,381

Classes of Loan Portfolio Summarized by Aging Categories

The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of March 31, 2015 and September 30, 2014 (in thousands):


	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non- Accrual		Total Loans
March 31, 2015
Real estate loans
Residential	$	615,872	$	2,052	$	440	$	—	$	10,670	$	13,162	$	629,034
Construction		1,489		—		—		—		—		—		1,489
Commercial		185,477		896		83		—		10,681		11,660		197,137
Commercial		34,892		1,735		54		—		242		2,031		36,923
Obligations of states and political subdivisions		47,054		—		—		—		—		—		47,054
Home equity loans and lines of credit		39,897		463		86		—		411		960		40,857
Auto loans		130,585		654		157		—		174		985		131,570
Other		3,055		16		16		—		12		44		3,099

Total	$	1,058,321	$	5,816	$	836	$	—	$	22,190	$	28,842	$	1,087,163


	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non- Accrual		Total Loans
September 30, 2014
Real estate loans
Residential	$	640,583	$	2,398	$	1,393	$	—	$	9,778	$	13,569	$	654,152
Construction		1,367		—		—		—		—		—		1,367
Commercial		179,319		516		89		—		10,612		11,217		190,536
Commercial		24,424		110		30		—		1,243		1,383		25,807
Obligations of states and political subdivisions		49,159		18		—		—		—		18		49,177
Home equity loans and lines of credit		40,870		225		33		—		259		517		41,387
Auto loans		100,112		426		33		—		—		459		100,571
Other		3,884		—		—		—		20		20		3,904

Total	$	1,039,718	$	3,693	$	1,578	$	—	$	21,912	$	27,183	$	1,066,901

Summary of Primary Segments of ALL

The following tables summarize changes in the primary segments of the ALL for the three and six month periods ending March 31, 2015 and 2014 (in thousands):


	Real Estate Loans
	Residential			Construction		Commercial			Commercial Loans			Obligations of States and Political Subdivisions			Home Equity Loans and Lines of Credit			Auto Loans			Other Loans			Unallocated			Total
ALL balance at December 31, 2014	$	5,571		$	13	$	676		$	515		$	145		$	545		$	674		$	26		$	351		$	8,516
Charge-offs		(251	)		—		(42	)		—			—			—			(125	)		—			—			(418	)
Recoveries		4			—		20			9			—			4			8			—			—			45
Provision		(35	)		4		189			111			(58	)		(81	)		466			4			(75	)		525

ALL balance at March 31, 2015	$	5,289		$	17	$	843		$	635		$	87		$	468		$	1,023		$	30		$	276		$	8,668


December 31, 2013	$	5,903		$	26	$	1,011		$	330		$	106		$	491		$	—		$	22		$	480		$	8,369
Charge-offs		(536	)		—		(11	)		—			—			—			—			—			—			(547	)
Recoveries		1			—		83			1			—			—			—			5			—			90
Provision		552			—		(80	)		38			—			9			—			(1	)		232			750

ALL balance at March 31, 2014	$	5,920		$	26	$	1,003		$	369		$	106		$	500		$	—		$	26		$	712		$	8,662


	Real Estate Loans
	Residential			Construction		Commercial			Commercial Loans			Obligations of States and Political Subdivisions			Home Equity Loans and Lines of Credit			Auto Loans			Other Loans			Unallocated			Total
ALL balance at September 30, 2014	$	5,573		$	11	$	663		$	528		$	163		$	470		$	459		$	32		$	735		$	8,634
Charge-offs		(760	)		—		(53	)		(27	)		—			(19	)		(165	)		—			—			(1,024	)
Recoveries		22			—		31			9			—			12			9			—			—			83
Provision		454			6		202			125			(76	)		5			720			(2	)		(459	)		975

ALL balance at March 31, 2015	$	5,289		$	17	$	843		$	635		$	87		$	468		$	1,023		$	30		$	276		$	8,668


September 30, 2013	$	5,787		$	20	$	946		$	337		$	130		$	430		$	—		$	21		$	393		$	8,064
Charge-offs		(923	)		—		(50	)		(48	)		—			(63	)		—			—			—			(1,084	)
Recoveries		78			—		83			12			—			—			—			9			—			182
Provision		978			6		24			68			(24	)		133			—			(4	)		319			1,500

ALL balance at March 31, 2014	$	5,920		$	26	$	1,003		$	369		$	106		$	500		$	—		$	26		$	712		$	8,662

Summary of Loans Individually and Collectively Evaluated for Impairment

The following table summarizes the primary segments of the ALL, segregated into amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of March 31, 2015 (in thousands):


	Real Estate Loans
	Residential		Construction		Commercial		Commercial Loans		Obligations of States and Political Subdivisions		Home Equity Loans and Lines of Credit		Auto Loans		Other Loans		Unallocated		Total
Individually evaluated for impairment	$	280	$	—	$	4	$	—	$	—	$	40	$	12	$	—	$	—	$	336
Collectively evaluated for impairment		5,009		17		839		635		87		428		1,011		30		276		8,332

ALL Balance at March 31, 2015	$	5,289	$	17	$	843	$	635	$	87	$	468	$	1,023	$	30	$	276	$	8,668

Individually evaluated for impairment	$	334	$	—	$	84	$	—	$	—	$	50	$	—	$	—	$	—	$	468
Collectively evaluated for impairment		5,239		11		579		528		163		420		459		32		735		8,166

ALL balance at September 30, 2014	$	5,573	$	11	$	663	$	528	$	163	$	470	$	459	$	32	$	735	$	8,634

Summary of Troubled Debt Restructuring Granted

The following is a summary of troubled debt restructuring granted during the three and six months ended March 31, 2015 and 2014 (dollars in thousands).


	For the Three Months Ended March 31, 2015
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		2	$	408	$	408
Construction		—		—		—
Commercial		—		—		—
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		1		150		150
Auto loans		—		—		—
Other		—		—		—


Total		3	$	558	$	558


	For the Three Months Ended March 31, 2014
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		3	$	473	$	473
Construction		—		—		—
Commercial		1		197		197
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Auto loans		—		—		—
Other		—		—		—


Total		4	$	670	$	670


	For the Six Months Ended March 31, 2015
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		9	$	1,474	$	1,474
Construction		—		—		—
Commercial		—		—		—
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		1		150		150
Auto loans		—		—		—
Other		—		—		—


Total		10	$	1,624	$	1,624


	For the Six Months Ended March 31, 2014
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		7	$	1,066	$	1,066
Construction		—		—		—
Commercial		1		197		197
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—


Total		8	$	1,263	$	1,263