| Loans And Allowance For Loan Losses | LOANS AND ALLOWANCE FOR LOAN LOSSES Loans held for investment consist of the following: September 30, 2020 2019 Real estate loans: Residential Core $ 10,774,845 $ 10,903,024 Residential Home Today 75,166 84,942 Home equity loans and lines of credit 2,232,236 2,174,961 Construction 47,985 52,332 Real estate loans 13,130,232 13,215,259 Other loans 2,581 3,166 Add (deduct): Deferred loan expenses, net 42,459 41,976 Loans-in-process (“LIP”) (25,273) (25,743) Allowance for loan losses (46,937) (38,913) Loans held for investment, net $ 13,103,062 $ 13,195,745 At September 30, 2020 and 2019, respectively, $36,871 and $3,666 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 September 30, 2020 and 2019, the percentage of aggregate Residential Core, Home Today and Construction loans held in Ohio were 56% and 57%, respectively, and the percentages held in Florida were 17% and 16%, respectively. As of September 30, 2020 and 2019, home equity loans and lines of credit were concentrated in the states of Ohio (29% and 31%), Florida (19% as of both dates) and California (16% as of both dates). Home Today was an affordable housing program targeted to benefit low- and moderate-income home buyers and most loans under the program were originated prior to 2009. No new loans were originated under the Home Today program after September 30, 2016. Through this program the Company provided the majority of loans to borrowers who would not otherwise qualify for the Company’s loan products, generally because of low credit scores. Because the Company 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 in the Residential Core portfolio. Since loans are no longer originated under the Home Today program, the Home Today portfolio will continue to decline in balance, primarily due to contractual amortization. To supplant the Home Today product and to continue to meet the credit needs of customers and the communities served, since fiscal 2016 the Company has offered Fannie Mae eligible, Home Ready loans. These loans are originated in accordance with Fannie Mae's underwriting standards. While the Company retains the servicing to these loans, the loans, along with the credit risk associated therewith, are securitized/sold to Fannie Mae. The Company 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, an LTV ratio greater than 100%, or pay-option adjustable-rate mortgages. The Company currently offers home equity lines of credit that include monthly principal and interest payments throughout the entire term. Home equity lines of credit originated prior to June 2010 require interest only payments for ten years, with an option to extend the interest only and draw period another ten years. Once the draw period has expired, the accounts are included in the home equity loan balance. The recorded investment in interest only loans is comprised solely of equity lines of credit with balances of $173 and $8,231 at September 30, 2020 and 2019, respectively. Regulatory agencies have encouraged financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations because of the effects of COVID-19, as set forth in the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (initially issued on March 22, 2020 and revised on April 7, 2020). FASB confirmed the foregoing regulatory agencies' view, that such short-term modifications (e.g., six months) made on a good-faith basis to borrowers who were current as of the implementation date of a relief program in response to COVID-19 are not TDRs. The regulatory agencies stated that performing loans granted payment deferrals due to COVID-19 in accordance with this interagency statement are not generally considered past due or non-accrual. The revised statement provides that eligible loan modifications related to COVID-19 may also be accounted for under section 4013 of the CARES Act or in accordance with ASC 310-40. The CARES Act offers temporary relief from TDRs on modifications made as a result of COVID-19 that were not more than 30 days past due as of December 31, 2019. The Company has elected to apply the temporary suspension of TDR requirements provided by the revised interagency statement for eligible loan modifications. For loan modifications that are not eligible for the suspension offered by the revised interagency statement, the Company considers the CARES Act to evaluate loan modifications within its scope, or existing TDR evaluation policies if the modification does not fall within the scope of the CARES Act. As of September 30, 2020, some of our borrowers have experienced unemployment or reduced income as a result of the COVID-19 global pandemic and have requested some type of loan payment forbearance. Short-term forbearance plans offered to borrowers affected by COVID-19 totaled $165,642 at September 30, 2020, of which $15,623 are classified as troubled debt restructurings due to either their classification as a TDR prior to the COVID-19 forbearance or not meeting the criteria to be exempt from TDR classification. Forbearance plans allow borrowers experiencing temporary financial hardship to defer a limited number of payments to a later point in time and are initially offered for a three-month period, which may be extended for borrowers that continue to be affected by COVID-19. The majority of active COVID-19 forbearance plans have been extended to at least six months. Forbearance plans that are extended beyond six months are evaluated for TDR classification in accordance with U.S. GAAP. The following table summarizes, as of September 30, 2020, for each portfolio by geographic location, active forbearance plans by recorded investment and as a percent of total loans. September 30, 2020 Total Forbearance plans as % of Portfolio Real estate loans: (Dollars in thousands) Residential Core Ohio $ 45,926 Florida 38,804 Other 56,107 Total 140,837 1.31% Residential Home Today Ohio 5,012 Florida 379 Total 5,391 7.21% Home equity loans and lines of credit Ohio 2,352 Florida 6,298 California 4,974 Other 5,790 Total 19,414 0.86% Total real estate loans $ 165,642 1.26% The following table summarizes, as of September 30, 2020, the recorded investment of active forbearance plans according to the month during which the payment deferrals are currently scheduled to end. Forbearance plan term extensions are available upon request. Month ending Total October 31, 2020 $ 85,915 November 30, 2020 28,661 December 31, 2020 40,041 January 31, 2021 11,025 Total active forbearance plans $ 165,642 A COVID-19 forbearance plan is generally resolved through payment in full at termination of the forbearance; through a non-TDR repayment plan, where a portion of the forbearance is paid in addition to the original contractual payment over 12 months or less; or through a non-TDR capitalization, where the total of forborne payments are added to the principal balance of the account, either with or without an extension of the maturity date. If additional concessions are required beyond resolving the short-term forbearance, the account will be considered for further modification in a troubled debt restructuring. At September 30, 2020, there were 1,609 of residential mortgages and 116 of equity loans and lines of credit in short term repayment plans and $31,467 of residential mortgages whose forbearance amounts were capitalized, subsequent to COVID-19 forbearance plans, that did not require TDR classification. The loan modifications eligible for TDR relief includes non-TDR forbearance plans, subsequent non- TDR repayment plans and non-TDR modifications including capitalization total $194,601. At September 30, 2020, forbearance plans that have required further modification in a troubled debt restructuring total $1,306. Real estate loans in COVID-19 forbearance plans and those that are subsequently placed in non-TDR short-term repayment plans are reported as current and accruing when they are current in accordance with their revised contractual terms and were less than 30 days past due as of the implementation date of the relief program, March 13, 2020, per the revised interagency statement, or not more than 30 days past due as of December 31, 2019 per the CARES Act. Otherwise, the delinquency and resulting accrual status of these loans are determined by the lowest number of days the loan was past due on either the two aforementioned measurement dates (March 13, 2020 or December 31, 2019) or, considering the loan's revised contractual terms, the current reporting date. At September 30, 2020, the balance of accrued interest receivable includes $2,540 of unpaid interest on active COVID-19 forbearance plans. The uncertain and potentially tumultuous impact of COVID-19 on the economic and housing markets, as well as the risk profiles of accounts in COVID-19 forbearance plans granted by the Company, were thoroughly considered in the determination of the allowance for loan losses as of September 30, 2020, as described in Note 1 . S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES. An age analysis of the recorded investment in loan receivables that are past due at September 30, 2020 and 2019 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 adjusted for deferred loan fees, expenses and any applicable loans-in-process. 30-59 Days 60-89 Days 90 Days Total Past Current Total September 30, 2020 Real estate loans: Residential Core $ 4,543 $ 2,344 $ 9,958 $ 16,845 $ 10,774,323 $ 10,791,168 Residential Home Today 1,406 651 2,480 4,537 70,277 74,814 Home equity loans and lines of credit 1,521 1,064 4,260 6,845 2,252,155 2,259,000 Construction — — — — 22,436 22,436 Total real estate loans 7,470 4,059 16,698 28,227 13,119,191 13,147,418 Other loans — — — — 2,581 2,581 Total $ 7,470 $ 4,059 $ 16,698 $ 28,227 $ 13,121,772 $ 13,149,999 30-59 60-89 90 Days Total Past Current Total September 30, 2019 Real estate loans: Residential Core $ 6,824 $ 4,030 $ 7,674 $ 18,528 $ 10,900,173 $ 10,918,701 Residential Home Today 2,629 1,685 2,623 6,937 77,677 84,614 Home equity loans and lines of credit 3,029 1,158 5,797 9,984 2,191,998 2,201,982 Construction — — — — 26,195 26,195 Total real estate loans 12,482 6,873 16,094 35,449 13,196,043 13,231,492 Other loans — — — — 3,166 3,166 Total $ 12,482 $ 6,873 $ 16,094 $ 35,449 $ 13,199,209 $ 13,234,658 At September 30, 2020, reported delinquencies above include $1,125, $353 and $1,361 of active COVID-19 forbearance plans and subsequent short-term repayment plans in 30-59 days past due, 60-89 days past due, and 90 days or more past due, respectively. The remaining balance of active COVID-19 forbearance and subsequent short-term repayment plans are reported as current. At September 30, 2020 and 2019, real estate loans include $6,479 and $7,543, respectively, of loans that were in the process of foreclosure. Pursuant to the CARES Act and extensions by the Federal Housing Administration, most foreclosure proceedings are on hold until December 31, 2020. Loans are placed in non-accrual status when they are contractually 90 days or more past due. 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. Loans with a partial charge-off are placed in non-accrual and will remain in non-accrual status until, at a minimum, the impairment is recovered. 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. Loans restructured in TDRs with a high debt-to-income ratio at the time of modification are placed in non-accrual status for a minimum of 12 months. 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. The recorded investment of loan receivables in non-accrual status is summarized in the following table. Balances are adjusted for deferred loan fees and expenses. September 30, 2020 2019 Real estate loans: Residential Core $ 31,823 $ 37,052 Residential Home Today 10,372 12,442 Home equity loans and lines of credit 11,174 21,771 Total non-accrual loans $ 53,369 $ 71,265 At September 30, 2020 and 2019, respectively, the recorded investment in non-accrual loans includes $36,835 and $55,171 which are performing according to the terms of their agreement, of which $20,334 and $25,895 are loans in Chapter 7 bankruptcy status, primarily where all borrowers have filed, and have not reaffirmed or been dismissed. The change in non-accrual loans from September 30, 2019 was partially impacted by the length of time TDRs with high debt-to-income ratios are retained in non-accrual status. TDRs with high debt-to-income ratios are placed in non-accrual status until they show sustained payment performance. 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, except cash payments may be applied to interest capitalized in a restructuring when collection of remaining amounts due is considered probable. 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 past due, or a loan in Chapter 7 bankruptcy status where all borrowers have filed, and have not reaffirmed or been dismissed. The recorded investment in loan receivables at September 30, 2020 and 2019 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. Loans evaluated individually primarily consist of TDRs. Balances of recorded investments are adjusted for deferred loan fees, expenses and any applicable loans-in-process. September 30, 2020 2019 Individually Collectively Total Individually Collectively Total Real estate loans: Residential Core $ 79,200 $ 10,711,968 $ 10,791,168 $ 87,069 $ 10,831,632 $ 10,918,701 Residential Home Today 34,261 40,553 74,814 36,959 47,655 84,614 Home equity loans and lines of credit 41,756 2,217,244 2,259,000 46,445 2,155,537 2,201,982 Construction — 22,436 22,436 — 26,195 26,195 Total real estate loans 155,217 12,992,201 13,147,418 170,473 13,061,019 13,231,492 Other loans — 2,581 2,581 — 3,166 3,166 Total $ 155,217 $ 12,994,782 $ 13,149,999 $ 170,473 $ 13,064,185 $ 13,234,658 An analysis of the allowance for loan losses at September 30, 2020 and 2019 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. September 30, 2020 2019 Individually Collectively Total Individually Collectively Total Real estate loans: Residential Core $ 6,963 $ 15,418 $ 22,381 $ 7,080 $ 12,673 $ 19,753 Residential Home Today 2,085 3,569 5,654 2,422 1,787 4,209 Home equity loans and lines of credit 3,802 15,096 18,898 4,003 10,943 14,946 Construction — 4 4 — 5 5 Total real estate loans $ 12,850 $ 34,087 $ 46,937 $ 13,505 $ 25,408 $ 38,913 At September 30, 2020 and 2019, 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, and loans with an indication of further deterioration in the fair value of the property not yet supported by a full review and collateral evaluation. 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 September 30, 2020 and 2019, respectively, allowances on individually reviewed loans evaluated for impairment (IVAs) included those based on the present value of cash flows, such as performing TDRs were $12,830 and $13,399, and allowances on loans with further deterioration in the fair value of the property not yet supported by a full review were $20 and $106. Residential Core mortgage loans represent the largest portion of the residential real estate portfolio. While the Company believes overall credit risk is low based on the nature, composition, collateral, products, lien position and performance of the portfolio, it could be affected by the duration and depth of the impact from COVID-19. The portfolio does not include loan types or structures that have experienced severe performance problems at other financial institutions (sub-prime, no documentation or pay-option adjustable-rate mortgages). The portfolio contains adjustable-rate mortgage loans whereby the interest rate is locked initially for mainly three or five years then resets annually, subject to various re-lock options available to the borrower. Although the borrower is qualified for its loan at a higher rate than the initial one, the adjustable-rate feature may impact a borrower's ability to afford the higher payments upon rate reset during periods of rising interest rates while this repayment risk may be reduced in a declining or low rate environment. With limited historical loss experience compared to other types of loans in the portfolio, judgment is required by management in assessing the allowance required on adjustable-rate mortgage loans. The principal amount of adjustable-rate mortgage loans included in the Residential Core portfolio was $5,122,266 and $5,063,010 at September 30, 2020 and 2019, respectively. As described earlier in this footnote, Home Today loans have greater credit risk than traditional residential real estate mortgage loans. At September 30, 2020 and 2019, respectively, approximately 12% and 14% 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 in 2011 and currently pays all claim payments at 76.5%. Appropriate adjustments have been made to the Company’s affected valuation allowances and charge-offs, and estimated loss severity factors were adjusted accordingly for loans evaluated collectively. The amount of loans in the Company's total owned residential portfolio covered by mortgage insurance provided by PMIC as of September 30, 2020 and 2019, respectively, was $20,649 and $26,191, of which $19,681 and $24,198 was current. The amount of loans in the Company's total owned residential portfolio covered by mortgage insurance provided by Mortgage Guaranty Insurance Corporation as of September 30, 2020 and 2019, respectively, was $12,381 and $17,345 of which $12,381 and $17,232 was current. As of September 30, 2020, 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 claim payments in accordance with its contractual obligations and the Company 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, which are comprised primarily of home equity lines of credit, represent a significant portion of the residential real estate portfolio. The impact of COVID-19 on employment, the general economy and, potentially, housing prices may adversely affect credit performance within the home equity loans and lines of credit portfolio. The Company originates construction loans to individuals for the construction of their personal single-family residence by a qualified builder (construction/permanent loans). The Company’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 Company currently offers construction/permanent loans with fixed or adjustable rates, and a current maximum loan-to-completed-appraised value ratio of 80%. Other loans are comprised of loans secured by certificate of deposit accounts, which are fully recoverable in the event of non-payment, and forgivable down payment assistance loans, which are unsecured loans used as down payment assistance to borrowers qualified through partner housing agencies. The Company records a liability for the loans which are forgiven in equal increments over a pre-determined term, subject to residency requirements. For all classes of loans, a loan is considered impaired when, based on current information and events, it is probable that the Company 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. The recorded investment and the unpaid principal balance of impaired loans, including those reported as TDRs, as of September 30, 2020 and September 30, 2019, are summarized as follows. Balances of recorded investments are adjusted for deferred loan fees and expenses. September 30, 2020 2019 Recorded Unpaid Related Recorded Unpaid Related With no related IVA recorded: Residential Core $ 41,164 $ 53,957 $ — $ 44,122 $ 59,538 $ — Residential Home Today 11,963 30,603 — 12,764 31,958 — Home equity loans and lines of credit 13,989 18,617 — 18,528 23,935 — Total $ 67,116 $ 103,177 $ — $ 75,414 $ 115,431 $ — With an IVA recorded: Residential Core $ 38,036 $ 38,103 $ 6,963 $ 42,947 $ 43,042 $ 7,080 Residential Home Today 22,298 22,272 2,085 24,195 24,178 2,422 Home equity loans and lines of credit 27,767 27,809 3,802 27,917 27,924 4,003 Total $ 88,101 $ 88,184 $ 12,850 $ 95,059 $ 95,144 $ 13,505 Total impaired loans: Residential Core $ 79,200 $ 92,060 $ 6,963 $ 87,069 $ 102,580 $ 7,080 Residential Home Today 34,261 52,875 2,085 36,959 56,136 2,422 Home equity loans and lines of credit 41,756 46,426 3,802 46,445 51,859 4,003 Total $ 155,217 $ 191,361 $ 12,850 $ 170,473 $ 210,575 $ 13,505 At September 30, 2020 and September 30, 2019, respectively, the recorded investment in impaired loans includes $141,300 and $157,408 of loans restructured in TDRs of which $7,215 and $8,435 are 90 days or more past due. The average recorded investment in impaired loans and the amount of interest income recognized during period that the loans were impaired are summarized below. For the Years Ended September 30, 2020 2019 2018 Average Interest Average Interest Average Interest With no related IVA recorded: Residential Core $ 42,643 $ 1,405 $ 48,889 $ 1,582 $ 50,582 $ 2,968 Residential Home Today 12,364 204 14,385 230 17,393 1,150 Home equity loans and lines of credit 16,259 321 20,476 442 20,608 402 Total $ 71,266 $ 1,930 $ 83,750 $ 2,254 $ 88,583 $ 4,520 With an IVA recorded: Residential Core $ 40,492 $ 1,172 $ 40,326 $ 1,371 $ 42,472 $ 1,571 Residential Home Today 23,247 1,086 24,856 1,173 26,689 1,590 Home equity loans and lines of credit 27,842 663 26,703 666 22,934 586 Total $ 91,581 $ 2,921 $ 91,885 $ 3,210 $ 92,095 $ 3,747 Total impaired loans: Residential Core $ 83,135 $ 2,577 $ 89,215 $ 2,953 $ 93,054 $ 4,539 Residential Home Today 35,611 1,290 39,241 1,403 44,082 2,740 Home equity loans and lines of credit 44,101 984 47,179 1,108 43,542 988 Total $ 162,847 $ 4,851 $ 175,635 $ 5,464 $ 180,678 $ 8,267 Interest on loans in non-accrual status is recognized on a cash basis. The amount of interest income on impaired loans recognized using a cash-basis method is $1,029, $1,425 and $2,245 for the years ended September 30, 2020, 2019 and 2018, 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, except cash payments may be applied to interest capitalized in a restructuring when collection of remaining amounts due is considered probable. Interest income on the remaining impaired loans is recognized on an accrual basis. 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. Partial or full charge-offs are also recognized for the amount of impairment on loans considered collateral dependent that meet the conditions described below. • For residential mortgage loans, payments are greater than 180 days delinquent; • For home equity lines of credit, equity loans, and residential loans restructured in a TDR, payments are greater than 90 days delinquent; • For all classes of loans restructured in a TDR with a high debt-to-income ratio at time of modification; • For all classes of loans, a sheriff sale is scheduled within 60 days to sell the collateral securing the loan; • For all classes of loans, all borrowers have been discharged of their obligation through a Chapter 7 bankruptcy; • 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; • For all classes of loans, a borrower obligated on a loan has filed bankruptcy and the loan is greater than 30 days delinquent; and • For all classes of loans, it becomes evident that a loss is probable. Collateral dependent residential mortgage loans and construction loans are charged off to the extent the recorded investment in the loan, net of anticipated mortgage insurance claims, exceeds the fair value, less estimated costs to dispose of the underlying property. Management can determine if 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 estimated costs to dispose of the underlying property, or management determines the collateral is not sufficient to satisfy the loan. A loan in any portfolio 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. Residential mortgage loans, home equity loans and lines of credit and construction 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 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 years ended September 30, 2020, 2019 and 2018. Initial concessions granted by loans restructured as TDRs may include reduction of interest rate, extension of amortization period, forbearance or other actions. Some TDRs have experienced a combination of concessions. TDRs also may occur as a result of bankruptcy proceedings. Loans discharged in Chapter 7 bankruptcy are classified as multiple restructurings if the loan's original terms had also been restructured by the Company. The recorded investment in TDRs by category as of September 30, 2020 and September 30, 2019 is shown in the tables below. September 30, 2020 Initial Restructuring Multiple Bankruptcy Total Residential Core $ 32,095 $ 22,689 $ 16,021 $ 70,805 Residential Home Today 15,023 15,315 3,113 33,451 Home equity loans and lines of credit 31,679 2,954 2,411 37,044 Total $ 78,797 $ 40,958 $ 21,545 $ 141,300 September 30, 2019 Initial Restructuring Multiple Bankruptcy Total Residential Core $ 35,829 $ 24,951 $ 19,494 $ 80,274 Residential Home Today 16,233 16,868 3,234 36,335 Home equity loans and lines of credit 34,459 3,115 3,225 40,799 Total $ 86,521 $ 44,934 $ 25,953 $ 157,408 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 their capacity to repay, such as loss of employment, reduction of work 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. For all loans restructured during the years ended September 30, 2020, 2019 and 2018 (set forth in the tables below), the pre-restructured outstanding recorded investment was not materially different from the post-restructured outstanding recorded investment. The following tables set forth the recorded investment in TDRs restructured during the periods presented. For the Year Ended September 30, 2020 Initial Restructuring Multiple Bankruptcy Total Residential Core $ 4 |
