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Loans Receivable
 12 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Loans Receivable LOANS RECEIVABLE 

The following table is a summary of loans receivable.
 
September 30, 2019
 
September 30, 2018
 
(In thousands)
 
(In thousands)
Gross loans by category
 
 
 
 
 
   Single-family residential
$
5,835,194

43.8
%
 
$
5,798,966

45.1
%
   Construction
2,038,052

15.3

 
1,890,668

14.7

   Construction - custom
540,741

4.1

 
624,479

4.9

   Land - acquisition & development
204,107

1.5

 
155,204

1.2

   Land - consumer lot loans
99,694

0.7

 
102,036

0.8

   Multi-family
1,422,674

10.7

 
1,385,125

10.8

   Commercial real estate
1,631,170

12.3

 
1,452,168

11.3

   Commercial & industrial
1,268,695

9.5

 
1,140,874

8.9

   HELOC
142,178

1.1

 
130,852

1.0

   Consumer
129,883

1.0

 
173,306

1.3

Total gross loans
13,312,388

100
%
 
12,853,678

100
%
   Less:
 
 
 
 
 
      Allowance for probable losses
131,534

 
 
129,257

 
      Loans in process
1,201,341

 
 
1,195,506

 
      Net deferred fees, costs and discounts
48,938

 
 
51,834

 
Total loan contra accounts
1,381,813

 
 
1,376,597

 
Net loans
$
11,930,575

 
 
$
11,477,081

 


The following summary breaks down the Company's fixed rate and adjustable rate loans by time to maturity or to rate adjustment.
September 30, 2019
Fixed-Rate
 
Adjustable-Rate
Term To Maturity
Gross Loans
% of Gross Loans
 
Term To Rate Adjustment
Gross Loans
% of Gross Loans
 
(In thousands)
 
 
 
(In thousands)
 
Within 1 year
$
135,426

1.0
%
 
Less than 1 year
$
4,056,238

30.5
%
1 to 3 years
416,285

3.1

 
1 to 3 years
558,197

4.2

3 to 5 years
341,838

2.6

 
3 to 5 years
489,151

3.7

5 to 10 years
993,685

7.5

 
5 to 10 years
110,934

0.8

10 to 20 years
1,059,127

8.0

 
10 to 20 years
32,242

0.2

Over 20 years
5,101,241

38.3

 
Over 20 years
18,024

0.1

 
$
8,047,602

60.5
%
 
 
$
5,264,786

39.5
%


The following tables provide information regarding loans receivable by loan category and geography.
 
September 30, 2019
Single -
family
residential
Multi-
family
Land -
A & D
Land -
lot loans
Construction - custom
Construction
Commercial
real estate
Commercial
and industrial
Consumer
HELOC
Total
 
(In thousands)
Washington
$
3,125,058

$
351,771

$
82,891

$
61,534

$
315,615

$
482,453

$
530,165

$
521,049

$
90,263

$
83,818

$
5,644,617

Oregon
694,577

353,388

50,195

13,228

61,699

430,749

294,574

287,922

1,376

14,780

2,202,488

Arizona
575,256

331,088

18,871

10,990

58,550

262,400

246,041

78,590

1,642

12,570

1,595,998

Utah
527,142

58,865

—

4,116

45,277

246,097

74,454

40,368

127

7,458

1,003,904

Texas
161,616

82,598

2,936

416

1,889

420,627

165,692

165,646

467

—

1,001,887

New Mexico
205,559

174,485

32,443

2,049

17,775

68,120

194,621

15,379

1,162

11,474

723,067

Idaho
321,184

43,446

16,771

4,658

27,499

88,956

91,725

34,125

84

8,932

637,380

Nevada
190,941

26,837

—

2,694

12,437

—

32,094

20,426

95

3,129

288,653

Other
33,861

196

—

9

—

38,650

1,804

105,190

34,667

17

214,394

 
$
5,835,194

$
1,422,674

$
204,107

$
99,694

$
540,741

$
2,038,052

$
1,631,170

$
1,268,695

$
129,883

$
142,178

$
13,312,388



Percentage by geographic area
September 30, 2019
Single -
family
residential
Multi-
family
Land -
A & D
Land -
lot loans
Construction - custom
Construction
Commercial
real estate
Commercial
and industrial
Consumer
HELOC
Total
 
As % of total gross loans
Washington
23.5
%
2.7
%
0.7
%
0.5
%
2.5
%
3.6
%
4.1
%
3.8
%
0.7
%
0.6
%
42.7
%
Oregon
5.2

2.7

0.4

0.1

0.5

3.2

2.2

2.2

—

0.1

16.6

Arizona
4.3

2.5

0.1

0.1

0.4

2.0

1.8

0.6

—

0.1

11.9

Utah
4.0

0.4

—

—

0.3

1.8

0.6

0.3

—

0.1

7.5

Texas
1.2

0.6

—

—

—

3.2

1.2

1.2

—

—

7.4

New Mexico
1.5

1.3

0.2

—

0.1

0.5

1.5

0.1

—

0.1

5.3

Idaho
2.4

0.3

0.1

—

0.2

0.7

0.7

0.3

—

0.1

4.8

Nevada
1.4

0.2

—

—

0.1

—

0.2

0.2

—

—

2.1

Other
0.3

—

—

—

—

0.3

—

0.8

0.3

—

1.7

 
43.8
%
10.7
%
1.5
%
0.7
%
4.1
%
15.3
%
12.3
%
9.5
%
1.0
%
1.1
%
100
%

Percentage by geographic area as a % of each loan type
September 30, 2019
Single -
family
residential
Multi-
family
Land -
A & D
Land -
lot loans
Construction - custom
Construction
Commercial
real estate
Commercial
and industrial
Consumer
HELOC
 
As % of total gross loans
Washington
53.6
%
24.7
%
40.6
%
61.7
%
58.4
%
23.7
%
32.5
%
41.1
%
69.5
%
59.0
%
Oregon
11.9

24.8

24.6

13.3

11.4

21.1

18.1

22.7

1.1

10.4

Arizona
9.9

23.3

9.2

11.0

10.8

12.9

15.1

6.2

1.3

8.8

Utah
9.0

4.1

—

4.1

8.4

12.1

4.6

3.2

0.1

5.2

Texas
2.8

5.8

1.4

0.4

0.3

20.6

10.2

13.1

0.4

—

New Mexico
3.5

12.3

15.9

2.1

3.3

3.3

11.9

1.2

0.9

8.1

Idaho
5.5

3.1

8.2

4.7

5.1

4.4

5.6

2.7

0.1

6.3

Nevada
3.3

1.9

—

2.7

2.3

—

2.0

1.6

0.1

2.2

Other
0.6

—

—

—

—

1.9

0.1

8.3

26.7

—

 
100
%
100
%
100
%
100
%
100
%
100
%
100
%
100
%
100
%
100
%

The Company has granted loans to officers and directors of the Company and related interests. These loans are made on the same terms,
including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than the normal risk of collectability. The aggregate dollar amount of these loans, including unfunded commitments to lend, was $76,288,000 and $70,012,000 at September 30, 2019 and 2018, respectively. As of September 30, 2019, all of these loans were performing in accordance with contractual terms.

The following table provides additional information on impaired loans, loan commitments and loans serviced for others.
 
September 30, 2019
 
September 30, 2018
 
(In thousands)
Recorded investment in impaired loans
$
149,546

 
$
199,545

TDRs included in impaired loans
121,677

 
156,858

Specific reserves on impaired loans
439

 
517

Average balance of impaired loans for year ended
175,187

 
228,398

Interest income from impaired loans for year ended
7,918

 
10,232

Outstanding fixed-rate origination commitments
357,247

 
400,426

Gross loans serviced for others
102,282

 
77,958



The following table sets forth information regarding non-accrual loans.
 
September 30, 2019
 
September 30, 2018
 
(In thousands)
 
(In thousands)
Non-accrual loans:
 
 
 
 
 
 
 
Single-family residential
$
25,271

 
74.9
%
 
$
27,643

 
49.6
%
Construction
—

 
—

 
2,427

 
4.4

Land - acquisition & development
169

 
0.5

 
920

 
1.7

Land - consumer lot loans
246

 
0.7

 
787

 
1.4

Commercial real estate
5,835

 
17.3

 
8,971

 
16.1

Commercial & industrial
1,292

 
3.8

 
14,394

 
25.8

HELOC
907

 
2.7

 
523

 
0.9

Consumer
11

 
—

 
21

 
—

Total non-accrual loans
$
33,731

 
100
%
 
$
55,686

 
100
%
Non-accrual loans as % of total loans
0.28
%
 
 
 
0.49
%
 
 

The following tables break down delinquent loans by loan category and delinquency bucket.
September 30, 2019
Amount of Loans
 
Days Delinquent Based on $ Amount of Loans
 
% based
on $
Loan type
Net of Loans in Process
 
Current
 
30
 
60
 
90
 
Total
 
 
(In thousands)
 
 
   Single-family residential
$
5,835,186

 
$
5,809,239

 
$
3,672

 
$
3,211

 
$
19,064

 
$
25,947

 
0.44
%
   Construction
1,164,889

 
1,164,889

 
—

 
—

 
—

 
—

 
—

   Construction - custom
255,505

 
255,505

 
—

 
—

 
—

 
—

 
—

   Land - acquisition & development
161,194

 
161,194

 
—

 
—

 
—

 
—

 
—

   Land - consumer lot loans
99,694

 
98,916

 
112

 
619

 
47

 
778

 
0.78

   Multi-family
1,422,652

 
1,422,652

 
—

 
—

 
—

 
—

 
—

   Commercial real estate
1,631,171

 
1,625,509

 
1,614

 
285

 
3,763

 
5,662

 
0.35

   Commercial & industrial
1,268,695

 
1,267,828

 
—

 
—

 
867

 
867

 
0.07

   HELOC
142,178

 
140,718

 
580

 
183

 
697

 
1,460

 
1.03

   Consumer
129,883

 
129,227

 
295

 
117

 
244

 
656

 
0.51

Total Loans
$
12,111,047

 
$
12,075,677

 
$
6,273

 
$
4,415

 
$
24,682

 
$
35,370

 
0.29
%
Delinquency %
 
 
99.71%
 
0.05%
 
0.04%
 
0.20%
 
0.29%
 
 

September 30, 2018
Amount of Loans
 
Days Delinquent Based on $ Amount of Loans
 
% based
on $
Loan type
Net of Loans in Process
 
Current
 
30
 
60
 
90
 
Total
 
 
(In thousands)
 
 
   Single-family residential
$
5,798,353

 
$
5,768,253

 
$
7,983

 
$
3,562

 
$
18,555

 
$
30,100

 
0.52
%
   Construction
1,062,855

 
1,060,428

 
—

 
—

 
2,427

 
2,427

 
0.23

   Construction - custom
289,192

 
289,192

 
—

 
—

 
—

 
—

 
—

   Land - acquisition & development
123,560

 
122,620

 
—

 
270

 
670

 
940

 
0.76

   Land - consumer lot loans
101,908

 
101,294

 
144

 
117

 
353

 
614

 
0.60

   Multi-family
1,385,103

 
1,385,103

 
—

 
—

 
—

 
—

 
—

   Commercial real estate
1,452,169

 
1,448,946

 
316

 
1,767

 
1,140

 
3,223

 
0.22

   Commercial & industrial
1,140,874

 
1,130,836

 
—

 
—

 
10,038

 
10,038

 
0.88

   HELOC
130,852

 
129,510

 
567

 
469

 
306

 
1,342

 
1.03

   Consumer
173,306

 
172,777

 
172

 
328

 
29

 
529

 
0.31

Total Loans
$
11,658,172

 
$
11,608,959

 
$
9,182

 
$
6,513

 
$
33,518

 
$
49,213

 
0.42
%
Delinquency %
 
 
99.58%
 
0.08%
 
0.06%
 
0.29%
 
0.42%
 
 


Most loans restructured in troubled debt restructurings ("TDRs") are accruing and performing loans where the borrower has proactively approached the Company about modifications due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of 100 to 200 bps for a specific term, usually six to 12 months. Interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. As of September 30, 2019, the outstanding balance of TDR's was $121,677,000 as compared to $156,858,000 as of September 30, 2018. As of September 30, 2019, 95.9% of the restructured loans were performing. Single-family residential loans comprised 92.0% of TDR loans as of September 30, 2019. The Company reserves for restructured loans within its allowance for loan loss methodology by taking into account the following performance indicators: 1) time since modification; 2) current payment status and 3) geographic area.

The following table provides information related to loans that were modified in a TDR during the periods presented.
 
Twelve Months Ended September 30, 2019
 
Twelve Months Ended September 30, 2018
 
 
 
Pre-Modification
 
Post-Modification
 
 
 
Pre-Modification
 
Post-Modification
 
 
 
Outstanding
 
Outstanding
 
 
 
Outstanding
 
Outstanding
 
Number of
 
Recorded
 
Recorded
 
Number of
 
Recorded
 
Recorded
Troubled Debt Restructurings:
Contracts
 
Investment
 
Investment
 
Contracts
 
Investment
 
Investment
 
 
 
(In thousands)
 
 
 
(In thousands)
   Single-family residential
8

 
$
1,225

 
$
1,225

 
27

 
$
5,070

 
$
5,070

   Land - acquisition & development
—

 
—

 
—

 
1

 
107

 
107

   Land - consumer lot loans
1

 
40

 
40

 
—

 
—

 
—

   Commercial real estate
—

 
—

 
—

 
1

 
120

 
120

   Commercial & industrial
—

 
—

 
—

 
4

 
7,739

 
7,739

   HELOC
—

 
—

 
—

 
2

 
95

 
95

   Consumer
—

 
—

 
—

 
1

 
—

 
—

 
9

 
$
1,265

 
$
1,265

 
36

 
$
13,131

 
$
13,131



The following table provides information on payment defaults occurring during the periods presented where the loan had been modified in a TDR within 12 months of the payment default.

 
Twelve Months Ended September 30, 2019
 
Twelve Months Ended September 30, 2018
 
Number of
 
Recorded
 
Number of
 
Recorded
TDRs That Subsequently Defaulted:
Contracts
 
Investment
 
Contracts
 
Investment
 
(In thousands)
 
(In thousands)
   Single-family residential
7

 
$
1,546

 
4

 
$
433

   HELOC
—

 
—

 
1

 
77

 
7

 
$
1,546

 
5

 
$
510