Loans And Allowance For Loan Losses | 6 Months Ended |
Mar. 31, 2015 |
Receivables [Abstract] | |
Loans And Allowance For Loan Losses | LOANS AND ALLOWANCE FOR LOAN LOSSES |
Loans held for investment consist of the following: |
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| | March 31, | | September 30, | | | | | | | | | | | | | | | | | | | | |
2015 | 2014 | | | | | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Core | | $ | 9,128,623 | | | $ | 8,828,839 | | | | | | | | | | | | | | | | | | | | | |
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Residential Home Today | | 145,427 | | | 154,196 | | | | | | | | | | | | | | | | | | | | | |
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Home equity loans and lines of credit | | 1,656,331 | | | 1,696,929 | | | | | | | | | | | | | | | | | | | | | |
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Construction | | 44,949 | | | 57,104 | | | | | | | | | | | | | | | | | | | | | |
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Real estate loans | | 10,975,330 | | | 10,737,068 | | | | | | | | | | | | | | | | | | | | | |
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Other consumer loans | | 3,874 | | | 4,721 | | | | | | | | | | | | | | | | | | | | | |
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Less: | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred loan expenses (fees), net | | 4,525 | | | (1,155 | ) | | | | | | | | | | | | | | | | | | | | |
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LIP | | (25,068 | ) | | (28,585 | ) | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | (77,093 | ) | | (81,362 | ) | | | | | | | | | | | | | | | | | | | | |
Loans held for investment, net | | $ | 10,881,568 | | | $ | 10,630,687 | | | | | | | | | | | | | | | | | | | | | |
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At March 31, 2015 and September 30, 2014, respectively, $1,101 and $4,962 of loans were classified as mortgage loans held for sale. |
A large concentration of the Company’s lending is in Ohio and Florida. As of March 31, 2015 and September 30, 2014, the percentages of residential real estate loans held in Ohio were 66% and 68%, respectively, and the percentages held in Florida were 17% as of both dates. As of March 31, 2015 and September 30, 2014, home equity loans and lines of credit were concentrated in Ohio (40% at each date), Florida (27% and 28% respectively), and California (13% at each date). Although somewhat dissipating during the last two years, the lingering effects of the adverse economic conditions and market for real estate in Ohio and Florida that arose in connection with the financial crisis of 2008, continue to unfavorably impact the ability of borrowers in those areas to repay their loans. |
Home Today is an affordable housing program targeted to benefit low- and moderate-income home buyers. Through this program the Association provided the majority of loans to borrowers who would not otherwise qualify for the Association’s loan products, generally because of low credit scores. Although the credit profiles of borrowers in the Home Today program might be described as sub-prime, Home Today loans generally contain the same features as loans offered to our Core borrowers. Borrowers in the Home Today program must complete financial management education and counseling and must be referred to the Association by a sponsoring organization with which the Association has partnered as part of the program. Borrowers must also meet a minimum credit score threshold. Because the Association applied less stringent underwriting and credit standards to the majority of Home Today loans, loans originated under the program have greater credit risk than its traditional residential real estate mortgage loans. While effective March 27, 2009, the Home Today underwriting guidelines were changed to be substantially the same as the Association’s traditional first mortgage product, the majority of loans in this program were originated prior to that date. As of March 31, 2015 and September 30, 2014, the principal balance of Home Today loans originated prior to March 27, 2009 was $142,410 and $151,164, respectively. The Association does not offer, and has not offered, loan products frequently considered to be designed to target sub-prime borrowers containing features such as higher fees or higher rates, negative amortization, a loan-to-value ratio greater than 100%, or pay option adjustable-rate mortgages. |
An age analysis of the recorded investment in loan receivables that are past due at March 31, 2015 and September 30, 2014 is summarized in the following tables. When a loan is more than one month past due on its scheduled payments, the loan is considered 30 days or more past due. Balances are net of deferred fees and any applicable loans-in-process. |
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| 30-59 | | 60-89 | | 90 Days or | | Total Past | | Current | | Total | | | | | |
Days | Days | More Past | Due | | | | | |
Past Due | Past Due | Due | | | | | | |
March 31, 2015 | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | |
Residential Core | $ | 7,752 | | | $ | 2,159 | | | $ | 30,903 | | | $ | 40,814 | | | $ | 9,085,934 | | | $ | 9,126,748 | | | | | | |
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Residential Home Today | 4,639 | | | 2,065 | | | 12,325 | | | 19,029 | | | 124,343 | | | 143,372 | | | | | | |
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Home equity loans and lines of credit | 5,296 | | | 2,639 | | | 7,616 | | | 15,551 | | | 1,649,026 | | | 1,664,577 | | | | | | |
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Construction | — | | | — | | | — | | | — | | | 20,090 | | | 20,090 | | | | | | |
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Total real estate loans | 17,687 | | | 6,863 | | | 50,844 | | | 75,394 | | | 10,879,393 | | | 10,954,787 | | | | | | |
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Other consumer loans | — | | | — | | | — | | | — | | | 3,874 | | | 3,874 | | | | | | |
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Total | $ | 17,687 | | | $ | 6,863 | | | $ | 50,844 | | | $ | 75,394 | | | $ | 10,883,267 | | | $ | 10,958,661 | | | | | | |
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| 30-59 | | 60-89 | | 90 Days or | | Total Past | | Current | | Total | | | | | |
Days | Days | More Past | Due | | | | | |
Past Due | Past Due | Due | | | | | | |
September 30, 2014 | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | |
Residential Core | $ | 9,067 | | | $ | 3,899 | | | $ | 37,451 | | | $ | 50,417 | | | $ | 8,772,180 | | | $ | 8,822,597 | | | | | | |
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Residential Home Today | 7,887 | | | 2,553 | | | 15,105 | | | 25,545 | | | 126,417 | | | 151,962 | | | | | | |
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Home equity loans and lines of credit | 6,044 | | | 1,785 | | | 9,037 | | | 16,866 | | | 1,687,349 | | | 1,704,215 | | | | | | |
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Construction | 200 | | | — | | | — | | | 200 | | | 28,354 | | | 28,554 | | | | | | |
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Total real estate loans | 23,198 | | | 8,237 | | | 61,593 | | | 93,028 | | | 10,614,300 | | | 10,707,328 | | | | | | |
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Other consumer loans | — | | | — | | | — | | | — | | | 4,721 | | | 4,721 | | | | | | |
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Total | $ | 23,198 | | | $ | 8,237 | | | $ | 61,593 | | | $ | 93,028 | | | $ | 10,619,021 | | | $ | 10,712,049 | | | | | | |
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The recorded investment of loan receivables in non-accrual status is summarized in the following table. Balances are net of deferred fees. |
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| March 31, | | September 30, | | | | | | | | | | | | | | | | | | | | | |
2015 | 2014 | | | | | | | | | | | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Residential Core | $ | 71,180 | | | $ | 79,388 | | | | | | | | | | | | | | | | | | | | | | |
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Residential Home Today | 26,455 | | | 29,960 | | | | | | | | | | | | | | | | | | | | | | |
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Home equity loans and lines of credit | 24,658 | | | 26,189 | | | | | | | | | | | | | | | | | | | | | | |
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Construction | — | | | — | | | | | | | | | | | | | | | | | | | | | | |
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Total real estate loans | 122,293 | | | 135,537 | | | | | | | | | | | | | | | | | | | | | | |
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Other consumer loans | — | | | — | | | | | | | | | | | | | | | | | | | | | | |
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Total non-accrual loans | $ | 122,293 | | | $ | 135,537 | | | | | | | | | | | | | | | | | | | | | | |
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Loans are placed in non-accrual status when they are contractually 90 days or more past due. Loans restructured in TDRs that were in non-accrual status prior to the restructurings remain in non-accrual status for a minimum of six months after restructuring. Additionally, home equity loans and lines of credit where the customer has a severely delinquent first mortgage loan and loans in Chapter 7 bankruptcy status where all borrowers have filed, and not reaffirmed or been dismissed, are placed in non-accrual status. At March 31, 2015 and September 30, 2014, respectively, the recorded investment in non-accrual loans includes $71,448 and $73,946 which are performing according to the terms of their agreement, of which $46,183 and $49,019 are loans in Chapter 7 bankruptcy status primarily where all borrowers have filed, and have not reaffirmed or been dismissed. |
Interest on loans in accrual status, including certain loans individually reviewed for impairment, is recognized in interest income as it accrues, on a daily basis. Accrued interest on loans in non-accrual status is reversed by a charge to interest income and income is subsequently recognized only to the extent cash payments are received. Cash payments on loans in non-accrual status are applied to the oldest scheduled, unpaid payment first. Cash payments on loans with a partial charge-off are applied fully to principal, then to recovery of the charged off amount prior to interest income being recognized. A non-accrual loan is generally returned to accrual status when contractual payments are less than 90 days past due. However, a loan may remain in non-accrual status when collectability is uncertain, such as a TDR that has not met minimum payment requirements, a loan with a partial charge-off, an equity loan or line of credit with a delinquent first mortgage greater than 90 days, or a loan in Chapter 7 bankruptcy status where all borrowers have filed, and have not reaffirmed or been dismissed. The number of days past due is determined by the number of scheduled payments that remain unpaid, assuming a period of 30 days between each scheduled payment. |
The recorded investment in loan receivables at March 31, 2015 and September 30, 2014 is summarized in the following table. The table provides details of the recorded balances according to the method of evaluation used for determining the allowance for loan losses, distinguishing between determinations made by evaluating individual loans and determinations made by evaluating groups of loans not individually evaluated. Balances of recorded investments are net of deferred fees and any applicable loans-in-process. |
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| | March 31, 2015 | | September 30, 2014 | | | | |
| | Individually | | Collectively | | Total | | Individually | | Collectively | | Total | | | | |
Real estate loans: | | | | | | | | | | | | | | | | |
Residential Core | | $ | 127,905 | | | $ | 8,998,843 | | | $ | 9,126,748 | | | $ | 131,719 | | | $ | 8,690,878 | | | $ | 8,822,597 | | | | | |
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Residential Home Today | | 63,393 | | | 79,979 | | | 143,372 | | | 67,177 | | | 84,785 | | | 151,962 | | | | | |
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Home equity loans and lines of credit | | 32,363 | | | 1,632,214 | | | 1,664,577 | | | 34,490 | | | 1,669,725 | | | 1,704,215 | | | | | |
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Construction | | — | | | 20,090 | | | 20,090 | | | — | | | 28,554 | | | 28,554 | | | | | |
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Total real estate loans | | 223,661 | | | 10,731,126 | | | 10,954,787 | | | 233,386 | | | 10,473,942 | | | 10,707,328 | | | | | |
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Other consumer loans | | — | | | 3,874 | | | 3,874 | | | — | | | 4,721 | | | 4,721 | | | | | |
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Total | | $ | 223,661 | | | $ | 10,735,000 | | | $ | 10,958,661 | | | $ | 233,386 | | | $ | 10,478,663 | | | $ | 10,712,049 | | | | | |
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An analysis of the allowance for loan losses at March 31, 2015 and September 30, 2014 is summarized in the following table. The analysis provides details of the allowance for loan losses according to the method of evaluation, distinguishing between allowances for loan losses determined by evaluating individual loans and allowances for loan losses determined by evaluating groups of loans collectively. |
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| | March 31, 2015 | | September 30, 2014 | | | | |
| | Individually | | Collectively | | Total | | Individually | | Collectively | | Total | | | | |
Real estate loans: | | | | | | | | | | | | | | | | |
Residential Core | | $ | 9,799 | | | $ | 18,708 | | | $ | 28,507 | | | $ | 8,889 | | | $ | 22,191 | | | $ | 31,080 | | | | | |
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Residential Home Today | | 4,220 | | | 8,358 | | | 12,578 | | | 6,366 | | | 10,058 | | | 16,424 | | | | | |
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Home equity loans and lines of credit | | 541 | | | 35,449 | | | 35,990 | | | 532 | | | 33,299 | | | 33,831 | | | | | |
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Construction | | — | | | 18 | | | 18 | | | — | | | 27 | | | 27 | | | | | |
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Total real estate loans | | 14,560 | | | 62,533 | | | 77,093 | | | 15,787 | | | 65,575 | | | 81,362 | | | | | |
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Other consumer loans | | — | | | — | | | — | | | — | | | — | | | — | | | | | |
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Total | | $ | 14,560 | | | $ | 62,533 | | | $ | 77,093 | | | $ | 15,787 | | | $ | 65,575 | | | $ | 81,362 | | | | | |
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At March 31, 2015 and September 30, 2014, individually evaluated loans that required an allowance were comprised only of loans evaluated for impairment based on the present value of cash flows, such as performing TDRs. All other individually evaluated loans received a charge-off, if applicable. |
Because many variables are considered in determining the appropriate level of general valuation allowances, directional changes in individual considerations do not always align with the directional change in the balance of a particular component of the general valuation allowance. At March 31, 2015 and September 30, 2014, respectively, allowances on individually reviewed loans evaluated for impairment based on the present value of cash flows, such as performing TDRs, were $14,560 and $15,787. |
Residential Core mortgage loans represent the largest portion of the residential real estate portfolio. The Company believes overall credit risk is low based on the nature, composition, collateral, products, lien position and performance of the portfolio. The portfolio does not include loan types or structures that have historically experienced severe performance problems at other financial institutions (sub-prime, no documentation or pay option adjustable rate mortgages). |
As described earlier in this footnote, Home Today loans have greater credit risk than traditional residential real estate mortgage loans. At March 31, 2015 and September 30, 2014, respectively, approximately 37% and 42% of Home Today loans include private mortgage insurance coverage. The majority of the coverage on these loans was provided by PMI Mortgage Insurance Co., which was seized by the Arizona Department of Insurance and through March 31, 2015 paid all claim payments at 67%. In April 2015, the Association was notified that, in addition to a catch-up adjustment for prior claims, all future claims will be paid at 70%. Appropriate adjustments have been made to the Association’s affected valuation allowances and charge-offs, and estimated loss severity factors were adjusted accordingly for loans evaluated collectively. The amount of loans in our owned portfolio covered by mortgage insurance provided by PMIC as of March 31, 2015 and September 30, 2014, respectively, was $157,842 and $186,233 of which $145,325 and $170,128 was current. The amount of loans in our owned portfolio covered by mortgage insurance provided by Mortgage Guaranty Insurance Corporation as of March 31, 2015 and September 30, 2014, respectively, was $66,602 and $74,254 of which $65,943 and $73,616 was current. As of March 31, 2015, MGIC's long-term debt rating, as published by the major credit rating agencies, did not meet the requirements to qualify as "high credit quality"; however, MGIC continues to make claims payments in accordance with its contractual obligations and the Association has not increased its estimated loss severity factors related to MGIC's claim paying ability. No other loans were covered by mortgage insurers that were deferring claim payments or which were assessed as being non-investment grade. |
Home equity loans and lines of credit represent a significant portion of the residential real estate portfolio, primarily comprised of home equity lines of credit. The state of the economy and low housing prices continue to have an adverse impact on a portion of this portfolio since the home equity lines generally are in a second lien position. Post-origination deterioration in economic and housing market conditions may also impact a borrower's ability to afford the higher payments required during the end of draw repayment period that follows the period of interest only payments on home equity lines of credit originated prior to 2012 or the ability to secure alternative financing. When the Association began to offer new home equity lines of credit again, the product was designed with prudent property and credit performance conditions to reduce future risk. Beginning in February 2013, the terms on new home equity lines of credit included monthly principal and interest payments throughout the entire term to minimize the potential payment differential between the during draw and after draw periods. |
The Association originates construction loans to individuals for the construction of their personal single-family residence by a qualified builder (construction/permanent loans). The Association’s construction/permanent loans generally provide for disbursements to the builder or sub-contractors during the construction phase as work progresses. During the construction phase, the borrower only pays interest on the drawn balance. Upon completion of construction, the loan converts to a permanent amortizing loan without the expense of a second closing. The Association offers construction/permanent loans with fixed or adjustable rates, and a current maximum loan-to-completed-appraised value ratio of 80%. Construction financing generally involves greater credit risk than long-term financing on improved, owner-occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at completion of construction compared to the estimated cost (including interest) of construction and other assumptions. If the estimate of construction cost proves to be inaccurate, the Association may be required to advance additional funds beyond the amount originally committed in order to protect the value of the property. Moreover, if the estimated value of the completed project proves to be inaccurate, the borrower may hold a property with a value that is insufficient to assure full repayment of the construction loan upon the sale of the property. This is more likely to occur when home prices are falling. |
Other consumer loans are comprised of loans secured by certificate of deposit accounts, which are fully recoverable in the event of non-payment. |
The recorded investment and the unpaid principal balance of impaired loans, including those reported as TDRs, as of March 31, 2015 and September 30, 2014 are summarized as follows. Balances of recorded investments are net of deferred fees. |
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| | March 31, 2015 | | September 30, 2014 | | | | |
| | Recorded | | Unpaid | | Related | | Recorded | | Unpaid | | Related | | | | |
Investment | Principal | Allowance | Investment | Principal | Allowance | | | | |
| Balance | | | Balance | | | | | |
With no related IVA recorded: | | | | | | | | | | | | | | | | |
Residential Core | | $ | 69,072 | | | $ | 89,553 | | | $ | — | | | $ | 72,840 | | | $ | 94,419 | | | $ | — | | | | | |
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Residential Home Today | | 26,463 | | | 55,646 | | | — | | | 28,045 | | | 57,854 | | | — | | | | | |
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Home equity loans and lines of credit | | 24,233 | | | 33,450 | | | — | | | 26,618 | | | 38,046 | | | — | | | | | |
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Construction | | — | | | — | | | — | | | — | | | — | | | — | | | | | |
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Other consumer loans | | — | | | — | | | — | | | — | | | — | | | — | | | | | |
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Total | | $ | 119,768 | | | $ | 178,649 | | | $ | — | | | $ | 127,503 | | | $ | 190,319 | | | $ | — | | | | | |
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With an IVA recorded: | | | | | | | | | | | | | | | | |
Residential Core | | $ | 58,833 | | | $ | 59,717 | | | $ | 9,799 | | | $ | 58,879 | | | $ | 59,842 | | | $ | 8,889 | | | | | |
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Residential Home Today | | 36,930 | | | 37,456 | | | 4,220 | | | 39,132 | | | 39,749 | | | 6,366 | | | | | |
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Home equity loans and lines of credit | | 8,130 | | | 8,141 | | | 541 | | | 7,872 | | | 7,909 | | | 532 | | | | | |
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Construction | | — | | | — | | | — | | | — | | | — | | | — | | | | | |
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Other consumer loans | | — | | | — | | | — | | | — | | | — | | | — | | | | | |
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Total | | $ | 103,893 | | | $ | 105,314 | | | $ | 14,560 | | | $ | 105,883 | | | $ | 107,500 | | | $ | 15,787 | | | | | |
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Total impaired loans: | | | | | | | | | | | | | | | | |
Residential Core | | $ | 127,905 | | | $ | 149,270 | | | $ | 9,799 | | | $ | 131,719 | | | $ | 154,261 | | | $ | 8,889 | | | | | |
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Residential Home Today | | 63,393 | | | 93,102 | | | 4,220 | | | 67,177 | | | 97,603 | | | 6,366 | | | | | |
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Home equity loans and lines of credit | | 32,363 | | | 41,591 | | | 541 | | | 34,490 | | | 45,955 | | | 532 | | | | | |
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Construction | | — | | | — | | | — | | | — | | | — | | | — | | | | | |
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Other consumer loans | | — | | | — | | | — | | | — | | | — | | | — | | | | | |
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Total | | $ | 223,661 | | | $ | 283,963 | | | $ | 14,560 | | | $ | 233,386 | | | $ | 297,819 | | | $ | 15,787 | | | | | |
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At March 31, 2015 and September 30, 2014, respectively, the recorded investment in impaired loans includes $184,307 and $186,428 of loans restructured in TDRs of which $19,010 and $20,851 were 90 days or more past due. |
For all classes of loans, a loan is considered impaired when, based on current information and events, it is probable that the Association will be unable to collect the scheduled payments of principal and interest according to the contractual terms of the loan agreement. Factors considered in determining that a loan is impaired may include the deteriorating financial condition of the borrower indicated by missed or delinquent payments, a pending legal action, such as bankruptcy or foreclosure, or the absence of adequate security for the loan. |
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Charge-offs on residential mortgage loans, home equity loans and lines of credit, and construction loans are recognized when triggering events, such as foreclosure actions, short sales, or deeds accepted in lieu of repayment, result in less than full repayment of the recorded investment in the loans. |
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Partial or full charge-offs are also recognized for the amount of impairment on loans considered collateral dependent that meet the conditions described below. |
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• | For residential mortgage loans, payments are greater than 180 days delinquent; | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | For home equity lines of credit, equity loans, and residential loans restructured in a TDR, payments are greater than 90 days delinquent; | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | For all classes of loans, a sheriff sale is scheduled within 60 days to sell the collateral securing the loan; | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | For all classes of loans, all borrowers have been discharged of their obligation through a Chapter 7 bankruptcy; | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | For all classes of loans, within 60 days of notification, all borrowers obligated on the loan have filed Chapter 7 bankruptcy and have not reaffirmed or been dismissed; | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | For all classes of loans, a borrower obligated on a loan has filed bankruptcy and the loan is greater than 30 days delinquent; | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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• | For all classes of loans, it becomes evident that a loss is probable. | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Collateral dependent residential mortgage loans and construction loans are charged off to the extent the recorded investment in a loan, net of anticipated mortgage insurance claims, exceeds the fair value less costs to dispose of the underlying property. Management can determine the loan is uncollectible for reasons such as foreclosures exceeding a reasonable time frame and recommend a full charge-off. Home equity loans or lines of credit are charged off to the extent the recorded investment in the loan plus the balance of any senior liens exceeds the fair value less costs to dispose of the underlying property or management determines the collateral is not sufficient to satisfy the loan. A loan in any portfolio that is identified as collateral dependent will continue to be reported as impaired until it is no longer considered collateral dependent, is less than 30 days past due and does not have a prior charge-off. A loan in any portfolio that has a partial charge-off consequent to impairment evaluation will continue to be individually evaluated for impairment until, at a minimum, the impairment has been recovered. |
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The following summarizes the effective dates of charge-off policies that changed or were first implemented during the current and previous four fiscal years and the portfolios to which those policies apply. |
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Effective Date | Policy | Portfolio(s) Affected | | | | | | | | | | | | | | | | | | | | | | | | | | |
6/30/14 | A loan is considered collateral dependent and any collateral shortfall is charged off when, within 60 days of notification, all borrowers obligated on a loan filed Chapter 7 bankruptcy and have not reaffirmed or been dismissed (1) | All | | | | | | | | | | | | | | | | | | | | | | | | | | |
9/30/12 | Pursuant to an OCC directive, a loan is considered collateral dependent and any collateral shortfall is charged off when all borrowers obligated on a loan are discharged through Chapter 7 bankruptcy | All | | | | | | | | | | | | | | | | | | | | | | | | | | |
6/30/12 | Loans in any form of bankruptcy greater than 30 days past due are considered collateral dependent and any collateral shortfall is charged off | All | | | | | | | | | | | | | | | | | | | | | | | | | | |
12/31/11 | Pursuant to an OCC directive, impairment on collateral dependent loans previously reserved for in the allowance were charged off. Charge-offs are recorded to recognize confirmed collateral shortfalls on impaired loans (2) | All | | | | | | | | | | | | | | | | | | | | | | | | | | |
9/30/10 | Timing of impairment evaluation was accelerated to include equity loans greater than 90 days delinquent (3) | Home Equity Loans | | | | | | | | | | | | | | | | | | | | | | | | | | |
____________________________ |
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-1 | Prior to 6/30/2014, collateral shortfalls on loans in Chapter 7 bankruptcy were charged off when all borrowers were discharged of the obligation or when the loan was 30 days or more past due. Adoption of this policy did not result in a material change to total charge-offs or the provision for loan losses in the three or nine months ending June 30, 2014. | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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-2 | Prior to 12/31/2011, partial charge-offs were not used, but a reserve in the allowance was established when the recorded investment in the loan exceeded the fair value of the collateral less costs to dispose. Individual loans were only charged off when a triggering event occurred, such as a foreclosure action was culminated, a short sale was approved, or a deed was accepted in lieu of repayment. | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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-3 | Prior to 9/30/2010, impairment evaluations on equity loans were performed when the loan was greater than 180 days delinquent. | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans restructured in TDRs that are not evaluated based on collateral are separately evaluated for impairment on a loan by loan basis at the time of restructuring and at each subsequent reporting date for as long as they are reported as TDRs. The impairment evaluation is based on the present value of expected future cash flows discounted at the effective interest rate of the original loan. Expected future cash flows include a discount factor representing a potential for default. Valuation allowances are recorded for the excess of the recorded investments over the result of the cash flow analysis. Loans discharged in Chapter 7 bankruptcy are reported as TDRs and also evaluated based on the present value of expected future cash flows unless evaluated based on collateral. We evaluate these loans using the expected future cash flows because we expect the borrower, not liquidation of the collateral, to be the source of repayment for the loan. Other consumer loans are not considered for restructuring. A loan restructured in a TDR is classified as an impaired loan for a minimum of one year. After one year, that loan may be reclassified out of the balance of impaired loans if the loan was restructured to yield a market rate for loans of similar credit risk at the time of restructuring and the loan is not impaired based on the terms of the restructuring agreement. No loans whose terms were restructured in TDRs were reclassified from impaired loans during the three months ended March 31, 2015 and March 31, 2014. |
The average recorded investment in impaired loans and the amount of interest income recognized during the period that the loans were impaired are summarized below. |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended March 31, | | | | | | | | | | | | |
| | 2015 | | 2014 | | | | | | | | | | | | |
| | Average | | Interest | | Average | | Interest | | | | | | | | | | | | |
Recorded | Income | Recorded | Income | | | | | | | | | | | | |
Investment | Recognized | Investment | Recognized | | | | | | | | | | | | |
With no related IVA recorded: | | | | | | | | | | | | | | | | | | | | |
Residential Core | | $ | 70,658 | | | $ | 299 | | | $ | 80,383 | | | $ | 294 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Residential Home Today | | 26,886 | | | 65 | | | 31,130 | | | 66 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Home equity loans and lines of credit | | 24,305 | | | 86 | | | 28,752 | | | 85 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Construction | | — | | | — | | | 340 | | | 1 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Other consumer loans | | — | | | — | | | — | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total | | $ | 121,849 | | | $ | 450 | | | $ | 140,605 | | | $ | 446 | | | | | | | | | | | | | |
| | | | | | | | | | | |
With an IVA recorded: | | | | | | | | | | | | | | | | | | | | |
Residential Core | | $ | 58,762 | | | $ | 650 | | | $ | 59,000 | | | $ | 680 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Residential Home Today | | 37,262 | | | 476 | | | 42,427 | | | 536 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Home equity loans and lines of credit | | 8,274 | | | 59 | | | 6,888 | | | 59 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Construction | | — | | | — | | | — | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Other consumer loans | | — | | | — | | | — | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total | | $ | 104,298 | | | $ | 1,185 | | | $ | 108,315 | | | $ | 1,275 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total impaired loans: | | | | | | | | | | | | | | | | | | | | |
Residential Core | | $ | 129,420 | | | $ | 949 | | | $ | 139,383 | | | $ | 974 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Residential Home Today | | 64,148 | | | 541 | | | 73,557 | | | 602 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Home equity loans and lines of credit | | 32,579 | | | 145 | | | 35,640 | | | 144 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Construction | | — | | | — | | | 340 | | | 1 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Other consumer loans | | — | | | — | | | — | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total | | $ | 226,147 | | | $ | 1,635 | | | $ | 248,920 | | | $ | 1,721 | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Six Months Ended March 31, | | | | | | | | | | | | |
| | 2015 | | 2014 | | | | | | | | | | | | |
| | Average | | Interest | | Average | | Interest | | | | | | | | | | | | |
Recorded | Income | Recorded | Income | | | | | | | | | | | | |
Investment | Recognized | Investment | Recognized | | | | | | | | | | | | |
With no related IVA recorded: | | | | | | | | | | | | | | | | | | | | |
Residential Core | | $ | 70,956 | | | $ | 586 | | | $ | 83,212 | | | $ | 575 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Residential Home Today | | 27,254 | | | 123 | | | 31,854 | | | 153 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Home equity loans and lines of credit | | 25,426 | | | 158 | | | 28,210 | | | 177 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Construction | | — | | | — | | | 287 | | | 6 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Other consumer loans | | — | | | — | | | — | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total | | $ | 123,636 | | | $ | 867 | | | $ | 143,563 | | | $ | 911 | | | | | | | | | | | | | |
| | | | | | | | | | | |
With an IVA recorded: | | | | | | | | | | | | | | | | | | | | |
Residential Core | | $ | 58,856 | | | $ | 1,314 | | | $ | 59,749 | | | $ | 1,423 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Residential Home Today | | 38,031 | | | 963 | | | 43,677 | | | 1,089 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Home equity loans and lines of credit | | 8,001 | | | 126 | | | 6,889 | | | 119 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Construction | | — | | | — | | | 33 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Other consumer loans | | — | | | — | | | — | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total | | $ | 104,888 | | | $ | 2,403 | | | $ | 110,348 | | | $ | 2,631 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total impaired loans: | | | | | | | | | | | | | | | | | | | | |
Residential Core | | $ | 129,812 | | | $ | 1,900 | | | $ | 142,961 | | | $ | 1,998 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Residential Home Today | | 65,285 | | | 1,086 | | | 75,531 | | | 1,242 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Home equity loans and lines of credit | | 33,427 | | | 284 | | | 35,099 | | | 296 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Construction | | — | | | — | | | 320 | | | 6 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Other consumer loans | | — | | | — | | | — | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total | | $ | 228,524 | | | $ | 3,270 | | | $ | 253,911 | | | $ | 3,542 | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interest on loans in non-accrual status is recognized on a cash-basis. The amounts of interest income on impaired loans recognized using a cash-basis method were $306 and $583 for the quarter ended and six months ended March 31, 2015, respectively, and $285 and $629 for the quarter ended and six months ended March 31, 2014, respectively. Cash payments on loans with a partial charge-off are applied fully to principal, then to recovery of the charged off amount prior to interest income being recognized. Interest income on the remaining impaired loans is recognized on an accrual basis. |
The recorded investment in TDRs by type of concession as of March 31, 2015 and September 30, 2014 is shown in the tables below. |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31, 2015 | | Reduction in | | Payment | | Forbearance | | Multiple | | Multiple | | Bankruptcy | | Total |
Interest Rates | Extensions | or Other Actions | Concessions | Restructurings |
Residential Core | | $ | 16,925 | | | $ | 1,087 | | | $ | 9,277 | | | $ | 22,147 | | | $ | 22,909 | | | $ | 33,939 | | | $ | 106,284 | |
|
Residential Home Today | | 8,666 | | | 60 | | | 6,336 | | | 13,346 | | | 22,879 | | | 6,567 | | | 57,854 | |
|
Home equity loans and lines of credit | | 102 | | | 2,553 | | | 444 | | | 2,215 | | | 765 | | | 14,090 | | | 20,169 | |
|
Total | | $ | 25,693 | | | $ | 3,700 | | | $ | 16,057 | | | $ | 37,708 | | | $ | 46,553 | | | $ | 54,596 | | | $ | 184,307 | |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
September 30, 2014 | | Reduction in | | Payment | | Forbearance | | Multiple | | Multiple | | Bankruptcy | | Total |
Interest Rates | Extensions | or Other Actions | Concessions | Restructurings |
Residential Core | | $ | 16,693 | | | $ | 1,265 | | | $ | 10,248 | | | $ | 21,113 | | | $ | 22,687 | | | $ | 33,576 | | | $ | 105,582 | |
|
Residential Home Today | | 11,374 | | | 78 | | | 7,448 | | | 15,085 | | | 20,823 | | | 5,301 | | | 60,109 | |
|
Home equity loans and lines of credit | | 74 | | | 1,833 | | | 769 | | | 1,213 | | | 819 | | | 16,029 | | | 20,737 | |
|
Total | | $ | 28,141 | | | $ | 3,176 | | | $ | 18,465 | | | $ | 37,411 | | | $ | 44,329 | | | $ | 54,906 | | | $ | 186,428 | |
|
TDRs may be restructured more than once. Among other requirements, a subsequent restructuring may be available for a borrower upon the expiration of temporary restructuring terms if the borrower cannot return to regular loan payments. If the borrower is experiencing an income curtailment that temporarily has reduced his/her capacity to repay, such as loss of employment, reduction of hours, non-paid leave or short term disability, a temporary restructuring is considered. If the borrower lacks the capacity to repay the loan at the current terms due to a permanent condition, a permanent restructuring is considered. In evaluating the need for a subsequent restructuring, the borrower’s ability to repay is generally assessed utilizing a debt to income and cash flow analysis. As the economy slowly improves, the need for multiple restructurings continues to linger. Loans discharged in Chapter 7 bankruptcy are classified as multiple restructurings if the loan's original terms had also been restructured by the Association. |
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For all loans restructured during the three months and six months ended March 31, 2015 and March 31, 2014 (set forth in the table below), the pre-restructured outstanding recorded investment was not materially different from the post-restructured outstanding recorded investment. |
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The following tables set forth the recorded investment in TDRs restructured during the periods presented, according to the types of concessions granted. |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended March 31, 2015 |
| | Reduction in | | Payment | | Forbearance | | Multiple | | Multiple | | Bankruptcy | | Total |
Interest Rates | Extensions | or Other Actions | Concessions | Restructurings |
Residential Core | | $ | 805 | | | $ | — | | | $ | 212 | | | $ | 1,149 | | | $ | 1,528 | | | $ | 2,233 | | | $ | 5,927 | |
|
Residential Home Today | | — | | | — | | | 188 | | | 95 | | | 2,484 | | | 796 | | | 3,563 | |
|
Home equity loans and lines of credit | | — | | | 369 | | | — | | | 446 | | | 40 | | | 348 | | | 1,203 | |
|
Total | | $ | 805 | | | $ | 369 | | | $ | 400 | | | $ | 1,690 | | | $ | 4,052 | | | $ | 3,377 | | | $ | 10,693 | |
|
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended March 31, 2014 |
| | Reduction in | | Payment | | Forbearance | | Multiple | | Multiple | | Bankruptcy | | Total |
Interest Rates | Extensions | or Other Actions | Concessions | Restructurings |
Residential Core | | $ | 442 | | | $ | — | | | $ | — | | | $ | 586 | | | $ | 1,360 | | | $ | 1,541 | | | $ | 3,929 | |
|
Residential Home Today | | 74 | | | — | | | — | | | 2 | | | 1,207 | | | 227 | | | 1,510 | |
|
Home equity loans and lines of credit | | — | | | 237 | | | — | | | 551 | | | 70 | | | 1,189 | | | 2,047 | |
|
Total | | $ | 516 | | | $ | 237 | | | $ | — | | | $ | 1,139 | | | $ | 2,637 | | | $ | 2,957 | | | $ | 7,486 | |
|
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Six Months Ended March 31, 2015 |
| | Reduction in | | Payment | | Forbearance | | Multiple | | Multiple | | Bankruptcy | | Total |
Interest Rates | Extensions | or Other Actions | Concessions | Restructurings |
Residential Core | | $ | 1,565 | | | $ | — | | | $ | 278 | | | $ | 2,998 | | | $ | 2,515 | | | $ | 5,089 | | | $ | 12,445 | |
|
Residential Home Today | | 82 | | | — | | | 357 | | | 158 | | | 3,806 | | | 1,786 | | | 6,189 | |
|
Home equity loans and lines of credit | | — | | | 1,015 | | | — | | | 917 | | | 83 | | | 913 | | | 2,928 | |
|
Total | | $ | 1,647 | | | $ | 1,015 | | | $ | 635 | | | $ | 4,073 | | | $ | 6,404 | | | $ | 7,788 | | | $ | 21,562 | |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Six Months Ended March 31, 2014 |
| | Reduction in | | Payment | | Forbearance | | Multiple | | Multiple | | Bankruptcy | | Total |
Interest Rates | Extensions | or Other Actions | Concessions | Restructurings |
Residential Core | | $ | 921 | | | $ | — | | | $ | 225 | | | $ | 2,112 | | | $ | 2,637 | | | $ | 3,397 | | | $ | 9,292 | |
|
Residential Home Today | | 163 | | | — | | | — | | | 227 | | | 2,321 | | | 445 | | | 3,156 | |
|
Home equity loans and lines of credit | | — | | | 523 | | | — | | | 745 | | | 126 | | | 2,073 | | | 3,467 | |
|
Total | | $ | 1,084 | | | $ | 523 | | | $ | 225 | | | $ | 3,084 | | | $ | 5,084 | | | $ | 5,915 | | | $ | 15,915 | |
|
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Below summarizes the information on TDRs restructured within the previous 12 months of the period listed for which there was a subsequent payment default, at least 30 days past due on one scheduled payment, during the period presented. |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended March 31, | | | | | | | | | | | | | | |
| | 2015 | | 2014 | | | | | | | | | | | | | | |
TDRs That Subsequently Defaulted | | Number of | | Recorded | | Number of | | Recorded | | | | | | | | | | | | | | |
Contracts | Investment | Contracts | Investment | | | | | | | | | | | | | | |
| | (Dollars in thousands) | | (Dollars in thousands) | | | | | | | | | | | | | | |
Residential Core | | 29 | | | $ | 3,698 | | | 32 | | | $ | 3,359 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Residential Home Today | | 22 | | | 799 | | | 31 | | | 1,516 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Home equity loans and lines of credit | | 14 | | | 575 | | | 40 | | | 1,469 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Total | | 65 | | | $ | 5,072 | | | 103 | | | $ | 6,344 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Six Months Ended March 31, | | | | | | | | | | | | | | |
| | 2015 | | 2014 | | | | | | | | | | | | | | |
TDRs That Subsequently Defaulted | | Number of | | Recorded | | Number of | | Recorded | | | | | | | | | | | | | | |
Contracts | Investment | Contracts | Investment | | | | | | | | | | | | | | |
| | (Dollars in thousands) | | (Dollars in thousands) | | | | | | | | | | | | | | |
Residential Core | | 34 | | | $ | 3,801 | | | 37 | | | $ | 3,773 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Residential Home Today | | 25 | | | 1,065 | | | 38 | | | 1,776 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Home equity loans and lines of credit | | 21 | | | 642 | | | 49 | | | 1,554 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Total | | 80 | | | $ | 5,508 | | | 124 | | | $ | 7,103 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
|
The following tables provide information about the credit quality of residential loan receivables by an internally assigned grade. Balances are net of deferred fees and any applicable LIP. |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Pass | | Special | | Substandard | | Loss | | Total | | | | | | | | |
Mention | | | | | | | | |
March 31, 2015 | | | | | | | | | | | | | | | | | | |
Real Estate Loans: | | | | | | | | | | | | | | | | | | |
Residential Core | | $ | 9,050,345 | | | $ | — | | | $ | 76,403 | | | $ | — | | | $ | 9,126,748 | | | | | | | | | |
| | | | | | | |
Residential Home Today | | 115,344 | | | — | | | 28,028 | | | — | | | 143,372 | | | | | | | | | |
| | | | | | | |
Home equity loans and lines of credit | | 1,630,364 | | | 5,879 | | | 28,334 | | | — | | | 1,664,577 | | | | | | | | | |
| | | | | | | |
Construction | | 20,090 | | | — | | | — | | | — | | | 20,090 | | | | | | | | | |
| | | | | | | |
Total | | $ | 10,816,143 | | | $ | 5,879 | | | $ | 132,765 | | | $ | — | | | $ | 10,954,787 | | | | | | | | | |
| | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Pass | | Special | | Substandard | | Loss | | Total | | | | | | | | |
Mention | | | | | | | | |
September 30, 2014 | | | | | | | | | | | | | | | | | | |
Real Estate Loans: | | | | | | | | | | | | | | | | | | |
Residential Core | | $ | 8,739,183 | | | $ | — | | | $ | 83,414 | | | $ | — | | | $ | 8,822,597 | | | | | | | | | |
| | | | | | | |
Residential Home Today | | 120,827 | | | — | | | 31,135 | | | — | | | 151,962 | | | | | | | | | |
| | | | | | | |
Home equity loans and lines of credit | | 1,667,939 | | | 6,084 | | | 30,192 | | | — | | | 1,704,215 | | | | | | | | | |
| | | | | | | |
Construction | | 28,554 | | | — | | | — | | | — | | | 28,554 | | | | | | | | | |
| | | | | | | |
Total | | $ | 10,556,503 | | | $ | 6,084 | | | $ | 144,741 | | | $ | — | | | $ | 10,707,328 | | | | | | | | | |
| | | | | | | |
Residential loans are internally assigned a grade that complies with the guidelines outlined in the OCC’s Handbook for Rating Credit Risk. Pass loans are assets well protected by the current paying capacity of the borrower. Special Mention loans have a potential weakness that the Association feels deserve management’s attention and may result in further deterioration in their repayment prospects and/or the Association’s credit position. Substandard loans are inadequately protected by the current payment capacity of the borrower or the collateral pledged with a defined weakness that jeopardizes the liquidation of the debt. Also included in Substandard are performing home equity loans and lines of credit where the customer has a severely delinquent first mortgage to which the performing home equity loan or line of credit is subordinate and loans in Chapter 7 bankruptcy status where all borrowers have filed, and have not reaffirmed or been dismissed. Loss loans are considered uncollectible and are charged off when identified. |
At March 31, 2015 and September 30, 2014, respectively, the recorded investment of impaired loans includes $102,906 and $103,459 of TDRs that are individually evaluated for impairment, but have adequately performed under the terms of the restructuring and are classified as Pass loans. At March 31, 2015 and September 30, 2014, respectively, there were $12,010 and $14,814 of loans classified substandard and $5,879 and $6,084 of loans designated special mention that are not included in the recorded investment of impaired loans; rather, they are included in loans collectively evaluated for impairment. |
Other consumer loans are internally assigned a grade of nonperforming when they become 90 days or more past due. At March 31, 2015 and September 30, 2014, no consumer loans were graded as nonperforming. |
During the quarter ended December 31, 2013, $5,321 of residential loans were deemed uncollectible and fully charged-off as a result of implementing a new practice of charging off the remaining balance on loans that had remained delinquent and in the foreclosure process for greater than 1,500 days. These loans previously were recorded at estimated net realizable value, with the potential for additional loss recognized within the allowance for loan losses. Any future foreclosure proceeds on these loans would result in recoveries of prior charge-offs. |
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Activity in the allowance for loan losses is summarized as follows: |
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| For the Three Months Ended March 31, 2015 | | | | | | | | | |
| Beginning | | Provisions | | Charge-offs | | Recoveries | | Ending | | | | | | | | | |
Balance | Balance | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | |
Residential Core | $ | 28,717 | | | $ | 1,315 | | | $ | (2,916 | ) | | $ | 1,391 | | | $ | 28,507 | | | | | | | | | | |
| | | | | | | | |
Residential Home Today | 16,434 | | | (3,537 | ) | | (581 | ) | | 262 | | | 12,578 | | | | | | | | | | |
| | | | | | | | |
Home equity loans and lines of credit | 34,595 | | | 3,221 | | | (3,124 | ) | | 1,298 | | | 35,990 | | | | | | | | | | |
| | | | | | | | |
Construction | 16 | | | 1 | | | — | | | 1 | | | 18 | | | | | | | | | | |
| | | | | | | | |
Total real estate loans | 79,762 | | | 1,000 | | | (6,621 | ) | | 2,952 | | | 77,093 | | | | | | | | | | |
| | | | | | | | |
Other consumer loans | — | | | — | | | — | | | — | | | — | | | | | | | | | | |
| | | | | | | | |
Total | $ | 79,762 | | | $ | 1,000 | | | $ | (6,621 | ) | | $ | 2,952 | | | $ | 77,093 | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended March 31, 2014 | | | | | | | | | |
| Beginning | | Provisions | | Charge-offs | | Recoveries | | Ending | | | | | | | | | |
Balance | Balance | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | |
Residential Core | $ | 33,462 | | | $ | 1,865 | | | $ | (3,707 | ) | | $ | 1,022 | | | $ | 32,642 | | | | | | | | | | |
| | | | | | | | |
Residential Home Today | 20,479 | | | (2,412 | ) | | (2,388 | ) | | 1,240 | | | 16,919 | | | | | | | | | | |
| | | | | | | | |
Home equity loans and lines of credit | 31,227 | | | 5,624 | | | (4,258 | ) | | 1,192 | | | 33,785 | | | | | | | | | | |
| | | | | | | | |
Construction | 114 | | | (77 | ) | | — | | | 8 | | | 45 | | | | | | | | | | |
| | | | | | | | |
Total real estate loans | 85,282 | | | 5,000 | | | (10,353 | ) | | 3,462 | | | 83,391 | | | | | | | | | | |
| | | | | | | | |
Other consumer loans | — | | | — | | | — | | | — | | | — | | | | | | | | | | |
| | | | | | | | |
Total | $ | 85,282 | | | $ | 5,000 | | | $ | (10,353 | ) | | $ | 3,462 | | | $ | 83,391 | | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Six Months Ended March 31, 2015 | | | | | | | | | |
| Beginning | | Provisions | | Charge-offs | | Recoveries | | Ending | | | | | | | | | |
Balance | Balance | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | |
Residential Core | $ | 31,080 | | | $ | (409 | ) | | $ | (4,184 | ) | | $ | 2,020 | | | $ | 28,507 | | | | | | | | | | |
| | | | | | | | |
Residential Home Today | 16,424 | | | (2,613 | ) | | (1,663 | ) | | 430 | | | 12,578 | | | | | | | | | | |
| | | | | | | | |
Home equity loans and lines of credit | 33,831 | | | 6,201 | | | (6,753 | ) | | 2,711 | | | 35,990 | | | | | | | | | | |
| | | | | | | | |
Construction | 27 | | | (179 | ) | | — | | | 170 | | | 18 | | | | | | | | | | |
| | | | | | | | |
Total real estate loans | 81,362 | | | 3,000 | | | (12,600 | ) | | 5,331 | | | 77,093 | | | | | | | | | | |
| | | | | | | | |
Other consumer loans | — | | | — | | | — | | | — | | | — | | | | | | | | | | |
| | | | | | | | |
Total | $ | 81,362 | | | $ | 3,000 | | | $ | (12,600 | ) | | $ | 5,331 | | | $ | 77,093 | | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Six Months Ended March 31, 2014 | | | | | | | | | |
| Beginning | | Provisions | | Charge-offs | | Recoveries | | Ending | | | | | | | | | |
Balance | Balance | | | | | | | | | |
Real estate loans: | | | | | | | | | | | | | | | | | | |
Residential Core | $ | 35,427 | | | $ | 6,946 | | | $ | (11,183 | ) | | $ | 1,452 | | | $ | 32,642 | | | | | | | | | | |
| | | | | | | | |
Residential Home Today | 24,112 | | | (3,219 | ) | | (5,321 | ) | | 1,347 | | | 16,919 | | | | | | | | | | |
| | | | | | | | |
Home equity loans and lines of credit | 32,818 | | | 7,381 | | | (8,935 | ) | | 2,521 | | | 33,785 | | | | | | | | | | |
| | | | | | | | |
Construction | 180 | | | (108 | ) | | (41 | ) | | 14 | | | 45 | | | | | | | | | | |
| | | | | | | | |
Total real estate loans | 92,537 | | | 11,000 | | | (25,480 | ) | | 5,334 | | | 83,391 | | | | | | | | | | |
| | | | | | | | |
Other consumer loans | — | | | — | | | — | | | — | | | — | | | | | | | | | | |
| | | | | | | | |
Total | $ | 92,537 | | | $ | 11,000 | | | $ | (25,480 | ) | | $ | 5,334 | | | $ | 83,391 | | | | | | | | | | |
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