Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Nov. 30, 2018 | Mar. 31, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | TIMBERLAND BANCORP INC, | ||
Entity Central Index Key | 1,046,050 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 8,310,703 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 224.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Cash and cash equivalents: | ||
Cash and due from financial institutions | $ 20,238 | $ 17,447 |
Interest-bearing deposits in banks | 128,626 | 130,741 |
Total cash and cash equivalents | 148,864 | 148,188 |
Certificates of deposit (“CDs”) held for investment (at cost, which approximates fair value) | 63,290 | 43,034 |
Investment securities held to maturity, at amortized cost (estimated fair value $13,264 and $7,744) | 12,810 | 7,139 |
Investment securities available for sale, at fair value | 1,154 | 1,241 |
Federal Home Loan Bank of Des Moines (“FHLB”) stock | 1,190 | 1,107 |
Other investments, at cost | 3,000 | 3,000 |
Loans held for sale | 1,785 | 3,599 |
Loans receivable, net of allowance for loans losses of $9,530 and $9,553 | 725,391 | 690,364 |
Premises and equipment, net | 18,953 | 18,418 |
Other real estate owned (“OREO”) and other repossessed assets, net | 1,913 | 3,301 |
Accrued interest receivable | 2,877 | 2,520 |
Bank owned life insurance (“BOLI”) | 19,813 | 19,266 |
Goodwill | 5,650 | 5,650 |
Mortgage servicing rights (“MSRs”), net | 2,028 | 1,825 |
Escrow deposit for business combination | 6,900 | 0 |
Other assets | 2,672 | 3,372 |
Total assets | 1,018,290 | 952,024 |
Deposits: | ||
Non-interest-bearing demand | 233,258 | 205,952 |
Interest-bearing | 656,248 | 631,946 |
Total deposits | 889,506 | 837,898 |
Other liabilities and accrued expenses | 4,127 | 3,126 |
Total liabilities | 893,633 | 841,024 |
Commitments and contingencies (See Note 14) | ||
Shareholders’ equity | ||
Preferred stock, $0.01 par value; 1,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value; 50,000,000 shares authorized; 7,401,177 shares issued and outstanding - September 30, 2018 7,361,077 shares issued and outstanding - September 30, 2017 | 14,394 | 13,286 |
Unearned shares issued to Employee Stock Ownership Plan (“ESOP”) | (133) | (397) |
Retained earnings | 110,525 | 98,235 |
Accumulated other comprehensive loss | (129) | (124) |
Total shareholders’ equity | 124,657 | 111,000 |
Total liabilities and shareholders’ equity | $ 1,018,290 | $ 952,024 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Mortgage-backed securities and other investments held to maturity-fair value | $ 13,264 | $ 7,744 |
Allowance for loan losses | $ 9,530 | $ 9,553 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 1,000,000 | 1,000,000 |
Preferred stock shares issued | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized | 50,000,000 | 50,000,000 |
Common stock shares issued | 7,401,177 | 7,361,077 |
Common stock shares outstanding | 7,401,177 | 7,361,077 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest and dividend income | |||
Loans receivable and loans held for sale | $ 38,298 | $ 36,385 | $ 33,580 |
Investment securities | 217 | 279 | 287 |
Dividends from mutual funds, FHLB stock and other investments | 120 | 88 | 106 |
Interest-bearing deposits in banks and CDs | 3,198 | 1,586 | 902 |
Total interest and dividend income | 41,833 | 38,338 | 34,875 |
Interest expense | |||
Deposits | 2,778 | 2,218 | 2,041 |
FHLB borrowings | 0 | 979 | 2,031 |
Total interest expense | 2,778 | 3,197 | 4,072 |
Net interest income | 39,055 | 35,141 | 30,803 |
Recapture of loan losses | 0 | (1,250) | 0 |
Net interest income after recapture of loan losses | 39,055 | 36,391 | 30,803 |
Non-interest income | |||
Recoveries (other than temporary impairment “OTTI”) on investment securities | 73 | 38 | (29) |
Adjustment for portion of OTTI transferred from other comprehensive income (before income taxes) | (5) | (5) | (139) |
Net recoveries (OTTI) on investment securities | 68 | 33 | (168) |
Service charges on deposits | 4,581 | 4,518 | 3,969 |
ATM and debit card interchange transaction fees | 3,570 | 3,343 | 3,261 |
BOLI net earnings | 547 | 545 | 551 |
Gain on sales of loans, net | 1,893 | 2,157 | 1,781 |
Escrow fees | 211 | 242 | 214 |
Servicing income on loans sold | 480 | 417 | 266 |
Fee income from non-deposit investment sales | 109 | 63 | 111 |
Other, net | 1,085 | 1,050 | 904 |
Total non-interest income, net | 12,544 | 12,368 | 10,889 |
Non-interest expense | |||
Salaries and employee benefits | 15,740 | 14,908 | 13,921 |
Premises and equipment | 3,231 | 3,082 | 3,130 |
Loss (gain) on sales/dispositions of premises and equipment, net | (102) | 5 | 7 |
Advertising | 782 | 698 | 753 |
OREO and other repossessed assets, net | 140 | 22 | 662 |
ATM and debit card interchange transaction fees | 1,296 | 1,405 | 1,377 |
Postage and courier | 456 | 435 | 413 |
State and local taxes | 687 | 609 | 572 |
Professional fees | 1,390 | 887 | 657 |
Federal Deposit Insurance Corporation (FDIC) insurance | 294 | 362 | 448 |
Loan administration and foreclosure | 336 | 205 | 321 |
Data processing and telecommunications | 1,938 | 1,870 | 1,896 |
Deposit operations | 1,192 | 1,074 | 912 |
Other | 1,797 | 1,954 | 1,568 |
Total non-interest expense, net | 29,177 | 27,516 | 26,637 |
Income before income taxes | 22,422 | 21,243 | 15,055 |
Provision for income taxes | 5,701 | 7,076 | 4,901 |
Net income | $ 16,721 | $ 14,167 | $ 10,154 |
Net income per common share | |||
Basic (in dollars per share) | $ 2.28 | $ 1.99 | $ 1.48 |
Diluted (in dollars per share) | $ 2.22 | $ 1.92 | $ 1.43 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Comprehensive income | |||
Net income | $ 16,721 | $ 14,167 | $ 10,154 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Unrealized holding (loss) gain on investment securities available for sale, net of income taxes of ($8), ($12), and $0, respectively | (39) | (23) | 1 |
Change in OTTI on investment securities held to maturity, net of income taxes: | |||
Adjustments related to other factors for which OTTI was previously recognized, net of income taxes of ($2), $12, and $7, respectively | (7) | 22 | 12 |
Amount reclassified to credit loss for previously recorded market loss, net of income taxes of $1, $2, and $49, respectively | 4 | 3 | 90 |
Accretion of OTTI on investment securities held to maturity, net of income taxes of $10, $26, and $18, respectively | 37 | 49 | 35 |
Total other comprehensive income (loss), net of income taxes | (5) | 51 | 138 |
Total comprehensive income | $ 16,716 | $ 14,218 | $ 10,292 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Unrealized holding gain (loss) on investment securities available-for-sale, taxes | $ (8) | $ (12) | $ 0 |
Reclassification adjustment for gain on sale of investment securities available-for-sale, taxes | 0 | 0 | 0 |
Adjustments related to other factors for which OTTI was previously recognized, taxes | (2) | 12 | 7 |
Amount reclassified to credit loss for previously recorded market loss, taxes | 1 | 2 | 49 |
Accretion of OTTI on investment securities held-to-maturity, taxes | $ 10 | $ 26 | $ 18 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Unearned Shares Issued to ESOP | Retained Earnings | Accumulated Other Comprehensive Loss | |
Beginning Balance at Sep. 30, 2015 | $ 89,187 | $ 10,293 | $ (926) | $ 80,133 | $ (313) | [1] |
Beginning Balance (in shares) at Sep. 30, 2015 | 6,988,848 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 10,154 | 10,154 | ||||
Other comprehensive income | 138 | 138 | ||||
Repurchase of common stock | (820) | $ (820) | ||||
Repurchase of common stock (in shares) | (66,000) | |||||
Exercise of stock options | $ 159 | $ 159 | ||||
Exercise of stock options (in shares) | 21,020 | 21,020 | ||||
Common stock dividends ($0.37, $0.50, and $0.60 per share, respectively) | $ (2,578) | (2,578) | ||||
Earned ESOP shares, net of income taxes | 404 | $ 139 | 265 | |||
Stock option/MRDP compensation expense | 190 | 190 | ||||
Ending Balance at Sep. 30, 2016 | 96,834 | $ 9,961 | (661) | 87,709 | (175) | [1] |
Ending Balance (in shares) at Sep. 30, 2016 | 6,943,868 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 14,167 | 14,167 | ||||
Other comprehensive income | 51 | 51 | ||||
Exercise of stock warrant | 2,496 | $ 2,496 | ||||
Exercise of stock warrant (in shares) | 370,899 | |||||
Exercise of stock options | $ 332 | $ 332 | ||||
Exercise of stock options (in shares) | 46,310 | 46,310 | ||||
Common stock dividends ($0.37, $0.50, and $0.60 per share, respectively) | $ (3,641) | (3,641) | ||||
Earned ESOP shares, net of income taxes | 605 | $ 341 | 264 | |||
Stock option/MRDP compensation expense | 156 | 156 | ||||
Ending Balance at Sep. 30, 2017 | 111,000 | $ 13,286 | (397) | 98,235 | (124) | [1] |
Ending Balance (in shares) at Sep. 30, 2017 | 7,361,077 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 16,721 | 16,721 | ||||
Other comprehensive income | (5) | (5) | ||||
Exercise of stock options | $ 318 | $ 318 | ||||
Exercise of stock options (in shares) | 40,100 | 40,100 | ||||
Common stock dividends ($0.37, $0.50, and $0.60 per share, respectively) | $ (4,431) | (4,431) | ||||
Earned ESOP shares, net of income taxes | 882 | $ 618 | 264 | |||
Stock option/MRDP compensation expense | 172 | 172 | ||||
Ending Balance at Sep. 30, 2018 | $ 124,657 | $ 14,394 | $ (133) | $ 110,525 | $ (129) | [1] |
Ending Balance (in shares) at Sep. 30, 2018 | 7,401,177 | |||||
[1] | All amounts are net of income taxes. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Common Stock | |||
Common stock dividends (in dollars per share) | $ 0.60 | $ 0.5 | $ 0.37 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018USD ($)property | Sep. 30, 2017USD ($)property | Sep. 30, 2016USD ($) | |
Cash flows from operating activities | |||
Net income | $ 16,721 | $ 14,167 | $ 10,154 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 1,290 | 1,262 | 1,328 |
Deferred income taxes | 797 | 385 | 283 |
Earned ESOP shares | 882 | 605 | 404 |
Stock option compensation expense | 172 | 156 | 190 |
Net (recoveries) OTTI on investment securities | (68) | (33) | 168 |
Gain on sales of OREO and other repossessed assets, net | (229) | (54) | (47) |
Provision for OREO losses | 248 | 42 | 435 |
Gain on sales of loans, net | (1,893) | (2,157) | (1,781) |
(Gain) loss on sales/dispositions of premises and equipment, net | (102) | 5 | 7 |
Recapture of loan losses | 0 | (1,250) | 0 |
Loans originated for sale | (62,677) | (69,996) | (57,354) |
Proceeds from sales of loans | 66,384 | 72,158 | 58,582 |
Amortization of MSRs | 491 | 487 | 555 |
BOLI net earnings | (547) | (545) | (551) |
Increase in deferred loan origination fees | 171 | 237 | 36 |
Net change in accrued interest receivable and other assets, and other liabilities and accrued expenses | (190) | (1,610) | (592) |
Net cash provided by operating activities | 21,450 | 13,859 | 11,817 |
Cash flows from investing activities | |||
Net (increase) decrease in CDs held for investment | (20,256) | 9,966 | (4,389) |
Purchase of investment securities held to maturity | (6,073) | 0 | 0 |
Proceeds from maturities and prepayments of investment securities held to maturity | 554 | 609 | 489 |
Proceeds from maturities and prepayments of investment securities available for sale | 41 | 68 | 53 |
Purchase of FHLB stock | (83) | (103) | (105) |
Proceeds from redemption of FHLB stock | 0 | 1,200 | 600 |
Purchase of other investments | 0 | (3,000) | 0 |
Increase in loans receivable, net | (35,522) | (26,956) | (59,212) |
Additions to premises and equipment | $ (2,186) | $ (3,526) | $ (640) |
Capitalized improvements to OREO | (2) | (4) | (142) |
Proceeds from sales of OREO and other repossessed assets | $ 1,693 | $ 1,579 | $ 3,798 |
Proceeds from sales/dispositions of premises and equipment | 463 | 0 | 0 |
Escrow deposit for business combination | (6,900) | 0 | 0 |
Net cash used in investing activities | (68,269) | (20,163) | (59,548) |
Cash flows from financing activities | |||
Net increase in deposits | 51,608 | 76,364 | 82,622 |
Repayment of FHLB borrowings | 0 | (30,000) | (15,000) |
Proceeds from exercise of stock options | 318 | 332 | 159 |
Proceeds from exercise of stock warrant | 0 | 2,496 | 0 |
Repurchase of common stock | 0 | 0 | (820) |
Payment of dividends | (4,431) | (3,641) | (2,578) |
Net cash provided by financing activities | 47,495 | 45,551 | 64,383 |
Net increase in cash and cash equivalents | 676 | 39,247 | 16,652 |
Beginning of period | 148,188 | 108,941 | 92,289 |
End of period | 148,864 | 148,188 | 108,941 |
Supplemental disclosure of cash flow information | |||
Income taxes paid | 4,462 | 7,596 | 4,412 |
Interest paid | 2,714 | 3,283 | 3,976 |
Supplemental disclosure of non-cash investing activities | |||
Loans transferred to OREO and other repossessed assets | 324 | 751 | 307 |
Other comprehensive income | $ (5) | $ 51 | $ 138 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of Timberland Bancorp, Inc. (“Timberland Bancorp”); its wholly owned subsidiary, Timberland Bank (the “Bank”); and the Bank’s wholly owned subsidiary, Timberland Service Corp. (collectively, the "Company”). All significant intercompany transactions and balances have been eliminated in consolidation. Nature of Operations Timberland Bancorp is a bank holding company which operates primarily through its subsidiary, the Bank. The Bank was established in 1915 and, through its 22 branches located in Grays Harbor, Pierce, Thurston, Kitsap, King and Lewis counties in Washington State, attracts deposits from the general public, and uses those funds, along with other borrowings, primarily to provide residential real estate, construction, commercial real estate, commercial business and consumer loans to borrowers primarily in western Washington. Consolidated Financial Statement Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S.") (“GAAP”) and prevailing practices within the banking industry. The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities, as of the date of the consolidated balance sheets, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the determination of any OTTI in the fair value of investment securities, the valuation of MSRs, the valuation of OREO and the valuation of goodwill for potential impairment. Certain prior year amounts have been reclassified to conform to the 2018 fiscal year presentation with no change to previously reported net income or shareholders’ equity. Segment Reporting The Company has one reportable operating segment which is defined as community banking in western Washington under the operating name “Timberland Bank.” Cash and Cash Equivalents and Cash Flows The Company considers amounts included in the consolidated balance sheets’ captions “Cash and due from financial institutions” and “Interest-bearing deposits in banks,” all of which mature within ninety days, to be cash equivalents for purposes of reporting cash flows. Interest-bearing deposits in banks as of September 30, 2018 and 2017 included deposits with the Federal Reserve Bank of San Francisco ("FRB") of $123,745,000 and $127,128,000 , respectively. The Company also maintains balances in correspondent bank accounts which, at times, may exceed the FDIC insurance limit of $250,000 per correspondent bank. Management believes that its risk of loss associated with such balances is minimal due to the financial strength of the FRB and the correspondent banks. CDs Held for Investment CDs held for investment include amounts invested with other FDIC-insured financial institutions for a stated interest rate and with a fixed maturity date. Such CDs generally have maturities of 12 to 24 months from the date of purchase by the Company. Early withdrawal penalties may apply; however, the Company intends to hold these CDs to maturity. The Company generally limits its purchases of CDs to a maximum of $250,000 (the FDIC insurance coverage limit) with any single financial institution. Investment Securities Investment securities are classified upon acquisition as either held to maturity or available for sale. Investment securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and reported at amortized cost. Investment securities classified as available for sale are reported at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss), net of income tax effects. Premiums and discounts are amortized to interest income using the interest method over the contractual lives of the securities. Gains and losses on sales of investment securities are recognized on the trade date and determined using the specific identification method. In estimating whether there are any OTTI losses, management considers (1) the length of time and the extent to which the fair value has been less than amortized cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates and (4) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value. Declines in the fair value of individual investment securities available for sale that are deemed to be other than temporary are recognized in earnings when identified. The fair value of the investment security then becomes the new cost basis. For individual investment securities that are held to maturity which the Company does not intend to sell, and it is not more likely than not that the Company will be required to sell before recovery of its amortized cost basis, the other than temporary decline in the fair value of the investment security related to: (1) credit loss is recognized in earnings and (2) market or other factors is recognized in other comprehensive income (loss). Credit loss is recorded if the present value of expected future cash flows is less than the amortized cost. For individual investment securities which the Company intends to sell or more likely than not will not recover all of its amortized cost, the OTTI is recognized in earnings equal to the entire difference between the investment security’s cost basis and its fair value at the consolidated balance sheet date. For individual investment securities for which credit loss has been recognized in earnings, interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized. Interest received after accruals have been suspended is recognized on a cash basis. FHLB Stock The Bank, as a member of the FHLB, is required to maintain an investment in capital stock of the FHLB in an amount equal to 0.12% of the Bank's total assets plus 4.00% of any borrowings from the FHLB. No ready market exists for this stock, and it has no quoted market value. However, redemption of FHLB stock has historically been at par value. The Company's investment in FHLB stock is carried at cost, which approximates fair value. The Company evaluates its FHLB stock for impairment as needed. The Company's determination of whether this investment is impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB as compared with the capital stock amount and the length of time any decline has persisted; (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB; and (4) the liquidity position of the FHLB. Based on its evaluation, the Company determined that there was no impairment of FHLB stock at September 30, 2018 and 2017. Other Investments The Bank invests in the Solomon Hess SBA Loan Fund LLC - a private investment fund - to help satisfy compliance with the Bank's Community Reinvestment Act ("CRA") investment test requirements. Shares in this fund are not publicly traded and therefore have no readily determinable fair market value. The Bank's investment in the fund is recorded at cost. An investor can have its investment in the fund redeemed for the balance of its capital account at any quarter end with a 60 day notice to the fund. Loans Held for Sale Mortgage loans and commercial business loans originated and intended for sale in the secondary market are stated in the aggregate at the lower of cost or estimated fair value. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Gains or losses on sales of loans are recognized at the time of sale. The gain or loss is the difference between the net sales proceeds and the recorded value of the loans, including any remaining unamortized deferred loan origination fees. Loans Receivable Loans are stated at the amount of unpaid principal, reduced by the undisbursed portion of construction loans in process, net deferred loan origination fees and the allowance for loan losses. Interest on loans is accrued daily based on the principal amount outstanding. Generally, the accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to make payments as they become due or when they are past due 90 days as to either principal or interest (based on contractual terms), unless the loan is well secured and in the process of collection. In determining whether a borrower may be able to make payments as they become due, management considers circumstances such as the financial strength of the borrower, the estimated collateral value, reasons for the delays in payments, payment record, the amounts past due and the number of days past due. All interest accrued but not collected for loans that are placed on non-accrual status or charged off is reversed against interest income. Subsequent collections on a cash basis are applied proportionately to past due principal and interest, unless collectability of principal is in doubt, in which case all payments are applied to principal. Loans are returned to accrual status when the loan is deemed current, and the collectability of principal and interest is no longer doubtful, or, in the case of one- to four-family loans, when the loan is less than 90 days delinquent. The categories of non-accrual loans and impaired loans overlap, although they are not identical. The Company charges fees for originating loans. These fees, net of certain loan origination costs, are deferred and amortized to income on the level-yield basis over the loan term. If the loan is repaid prior to maturity, the remaining unamortized deferred loan origination fee is recognized in income at the time of repayment. Troubled Debt Restructured Loans A troubled debt restructured loan ("TDR") is a loan for which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. Examples of such concessions include, but are not limited to: a reduction in the stated interest rate; an extension of the maturity at an interest rate below current market rates; a reduction in the face amount of the debt; a reduction in the accrued interest; or re-amortizations, extensions, deferrals and renewals. TDRs are considered impaired and are individually evaluated for impairment. TDRs are classified as non-accrual (and considered to be non-performing) unless they have been performing in accordance with modified terms for a period of at least six months. Allowance for Loan Losses The allowance for loan losses is maintained at a level sufficient to provide for probable losses inherent in the loan portfolio. The allowance is provided based upon management's comprehensive analysis of the pertinent factors underlying the quality of the loan portfolio. These factors include changes in the amount and composition of the loan portfolio, delinquency levels, actual loan loss experience, current economic conditions, and a detailed analysis of individual loans for which full collectability may not be assured. The detailed analysis includes methods to estimate the fair value of loan collateral and the existence of potential alternative sources of repayment. The allowance consists of specific and general components. The specific component relates to loans that are deemed impaired. For such loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value less selling costs (if applicable), or observable market price of the impaired loan is lower than the recorded value of that loan. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors. The Company's historical loss experience is determined by evaluating the average net charge-offs over the most recent economic cycle, but not to exceed six years. Qualitative factors are determined by loan type and allow management to adjust reserve levels to reflect the current general economic environment and portfolio performance trends including recent charge-off trends. Allowances are provided based on management’s continuing evaluation of the pertinent factors underlying the quality of the loan portfolio, including changes in the size and composition of the loan portfolio, actual loan loss experience, current economic conditions, collateral values, geographic concentrations, seasoning of the loan portfolio, specific industry conditions, the duration of the current business cycle, and regulatory requirements and expectations. The appropriateness of the allowance for loan losses is estimated based upon these factors and trends identified by management at the time the consolidated financial statements are prepared. A loan is considered impaired when it is probable that the Company will be unable to collect all amounts (principal and interest) when due according to the contractual terms of the loan agreement. Smaller balance homogeneous loans, such as residential mortgage loans and consumer loans, may be collectively evaluated for impairment. When a loan has been identified as being impaired, the amount of the impairment is measured by using discounted cash flows, except when, as an alternative, the current estimated fair value of the collateral (reduced by estimated costs to sell, if applicable) or observable market price is used. The valuation of real estate collateral is subjective in nature and may be adjusted in future periods because of changes in economic conditions. Management considers third-party appraisals, as well as independent fair market value assessments from realtors or persons involved in selling real estate, in determining the estimated fair value of particular properties. In addition, as certain of these third-party appraisals and independent fair market value assessments are only updated periodically, changes in the values of specific properties may have occurred subsequent to the most recent appraisals. Accordingly, the amounts of any such potential changes and any related adjustments are generally recorded at the time such information is received. When the estimated net realizable value of the impaired loan is less than the recorded investment in the loan (including accrued interest and net deferred loan origination fees or costs), impairment is recognized by creating or adjusting an allocation of the allowance for loan losses and uncollected accrued interest is reversed against interest income. If ultimate collection of principal is in doubt, all cash receipts on impaired loans are applied to reduce the principal balance. A provision for (recapture of) loan losses is charged (credited) to operations and is added to (deducted from) the allowance for loan losses based on a quarterly comprehensive analysis of the loan portfolio. The allowance for loan losses is allocated to certain loan categories based on the relative risk characteristics, asset classifications and actual loss experience of the loan portfolio. While management has allocated the allowance for loan losses to various loan portfolio segments, the allowance is general in nature and is available for the loan portfolio in its entirety. The ultimate recovery of all loans is susceptible to future market factors beyond the Company’s control. These factors may result in losses or recoveries differing significantly from those provided in the consolidated financial statements. If real estate values decline and as updated appraisals are received on collateral for impaired loans, the Company may need to increase the allowance for loan losses appropriately. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. Premises and Equipment Premises and equipment are recorded at cost. Depreciation is computed using the straight-line method over the following estimated useful lives: buildings and improvements - five to 40 years and furniture and equipment - three to seven years. The cost of maintenance and repairs is charged to expense as incurred. Gains and losses on dispositions are reflected in earnings. Impairment of Long-Lived Assets Long-lived assets, consisting of premises and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the recorded amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the recorded amount of an asset to undiscounted future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the recorded amount of the assets exceeds the discounted recovery amount or estimated fair value of the assets. No events or changes in circumstances have occurred during the years ended September 30, 2018 or 2017 that would cause management to evaluate the recoverability of the Company’s long-lived assets. OREO and Other Repossessed Assets OREO and other repossessed assets consist of properties or assets acquired through or in lieu of foreclosure, and are recorded initially at the estimated fair value of the properties less estimated costs of disposal, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. When the property is acquired, any excess of the loan balance over the estimated net realizable value is charged to the allowance for loan losses. The valuation of real estate is subjective in nature and may be adjusted in future periods because of changes in economic conditions. Management considers third-party appraisals, as well as independent fair market value assessments from realtors or persons involved in selling real estate, in determining the estimated fair values of particular properties. In addition, as certain of these third-party appraisals and independent fair market value assessments are only updated periodically, changes in the values of specific properties may have occurred subsequent to the most recent appraisals. Accordingly, the amounts of any such potential changes and any related adjustments are generally recorded at the time such information is received. Costs relating to development and improvement of the properties or assets are capitalized, while costs relating to holding the properties or assets are expensed. BOLI BOLI policies are recorded at their cash surrender value less applicable cash surrender charges. Income from BOLI is recognized when earned. Goodwill Goodwill is initially recorded when the purchase price paid in a business combination exceeds the estimated fair value of the net identified tangible and intangible assets acquired and liabilities assumed. Goodwill is presumed to have an indefinite useful life and is analyzed annually for impairment. The Company performs an annual review during the third quarter of each fiscal year, or more frequently if indicators of potential impairment exist, to determine if the recorded goodwill is impaired. For purposes of goodwill impairment testing, the services offered through the Bank and its subsidiary are managed as one strategic unit and represent the Company's only reporting unit. The annual goodwill impairment test begins with a qualitative assessment of whether it is "more likely than not" that the reporting unit's fair value is less than its carrying amount. If an entity concludes that it is not "more likely than not" that the fair value of a reporting unit is less than its carrying amount, it need not perform a two-step impairment test. If the Company's qualitative assessment concluded that it is "more likely than not" that the fair value of its reporting unit is less than its carrying amount, it must perform the two-step impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized, if any. The first step of the goodwill impairment test compares the estimated fair value of the reporting unit with its carrying amount, or the book value, including goodwill. If the estimated fair value of the reporting unit equals or exceeds its book value, goodwill is considered not impaired, and the second step of the impairment test is unnecessary. The second step, if necessary, measures the amount of goodwill impairment loss to be recognized. The reporting unit must determine fair value for all assets and liabilities, excluding goodwill. The net of the assigned fair value of assets and liabilities is then compared to the book value of the reporting unit, and any excess book value becomes the implied fair value of goodwill. If the carrying amount of the goodwill exceeds the newly calculated implied fair value of goodwill, an impairment loss is recognized in the amount required to write-down the goodwill to the implied fair value. Management's qualitative assessment takes into consideration macroeconomic conditions, industry and market considerations, cost or margin factors, financial performance and share price of the Company's common stock. Based on this assessment, the Company determined that it is not "more likely than not" that the Company's fair value is less than its carrying amount and therefore goodwill was determined not to be impaired at May 31, 2018. A significant amount of judgment is involved in determining if an indicator of goodwill impairment has occurred. Such indicators may include, among others: a significant decline in expected future cash flows; a sustained, significant decline in the Company's stock price and market capitalization; a significant adverse change in legal factors or in the business climate; adverse assessment or action by a regulator; and unanticipated competition. Any change in these indicators could have a significant negative impact on the Company's financial condition, impact the goodwill impairment analysis or cause the Company to perform a goodwill impairment analysis more frequently than once per year. As of September 30, 2018, management believes that there have been no events or changes in the circumstances since May 31, 2018 that would indicate a potential impairment of goodwill. No assurances can be given, however, that the Company will not record an impairment loss on goodwill in the future. MSRs The Company holds rights to service (1) loans that it has originated and sold to the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and (2) the guaranteed portion of U.S. Small Business Administration ("SBA") loans sold in the secondary market. MSRs are capitalized at estimated fair value when acquired through the origination of loans that are subsequently sold with the servicing rights retained. MSRs are amortized to servicing income on loans sold approximately in proportion to and over the period of estimated net servicing income. The value of MSRs at the date of the sale of loans is estimated based on the discounted present value of expected future cash flows using key assumptions for servicing income and costs and expected prepayment rates on the underlying loans. The estimated fair value is periodically evaluated for impairment by comparing actual cash flows and estimated future cash flows from the servicing assets to those estimated at the time the servicing assets were originated. Fair values are estimated using expected future discounted cash flows based on current market rates of interest. For purposes of measuring impairment, the MSRs must be stratified by one or more predominant risk characteristics of the underlying loans. The Company stratifies its capitalized MSRs based on product type and term of the underlying loans. The amount of impairment recognized is the amount, if any, by which the amortized cost of the MSRs exceeds their fair value. Impairment, if deemed temporary, is recognized through a valuation allowance to the extent that fair value is less than the recorded amount. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Income Taxes The Company files a consolidated federal and various state income tax returns. The Bank provides for income taxes separately and remits to (receives from) Timberland Bancorp amounts currently due (receivable). Deferred income taxes result from temporary differences between the tax basis of assets and liabilities, and their reported amounts in the consolidated financial statements. These temporary differences will result in differences between income for tax purposes and income for financial reporting purposes in future years. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established to reduce the net recorded amount of deferred tax assets if it is determined to be more likely than not that all or some portion of the potential deferred tax asset will not be realized. With respect to accounting for uncertainty in incomes taxes, a tax provision is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely to be realized upon examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters as income tax expense. The Company is no longer subject to U.S. federal income tax examination by tax authorities for years ended on or before September 30, 2014. ESOP The Bank sponsors a leveraged ESOP. The debt of the ESOP is payable to Timberland Bancorp, is recorded as other borrowed funds of the Bank, and is eliminated in the consolidated financial statements. The shares of the Company's common stock pledged as collateral for the ESOP's debt are reported as unearned shares issued to the ESOP in the consolidated financial statements. As shares are released from collateral, compensation expense is recorded equal to the average market price of the shares for the period, and the shares become available for net income per common share calculations. Dividends paid on unallocated shares reduce the Company’s cash contributions to the ESOP. Advertising Costs for advertising and marketing are expensed as incurred. Stock-Based Compensation The Company measures compensation cost for all stock-based awards based on the grant-date fair value of the stock-based awards and recognizes compensation cost over the service period of stock-based awards. The fair value of stock options is determined using the Black-Scholes valuation model. Stock option forfeitures are accounted for as they occur. Net Income Per Common Share Basic net income per common share is computed by dividing net income to common shareholders by the weighted average number of common shares outstanding during the period, without considering any dilutive items. Diluted net income per common share is computed by dividing net income to common shareholders by the weighted average number of common shares and common stock equivalents for items that are dilutive, net of shares assumed to be repurchased using the treasury stock method at the average share price for the Company's common stock during the period. Common stock equivalents arise from the assumed conversion of outstanding stock options and outstanding warrants to purchase common stock. Shares owned by the Bank’s ESOP that have not been allocated are not considered to be outstanding for the purpose of computing basic and diluted net income per common share. Related Party Transactions The Chairman of the Board of the Bank and Timberland Bancorp is a member of the law firm that provides general counsel to the Company. Legal and other fees paid to this law firm for the years ended September 30, 2018, 2017 and 2016 totaled $94,000 , $99,000 and $127,000 , respectively. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which created FASB Accounting Standards Codification ("ASC") Topic 606 ("ASC 606"). The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted ASC 606 on October 1, 2018. The Company's primary source of revenue is interest income, which is recognized when earned and is excluded from the scope of ASC 606, and non-interest income. The adoption of ASC 606 will require additional disclosures regarding insignificant components of non-interest income, but will not have a material impact on the Company's future consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU No. 2016-01 generally requires equity investments - except those accounted for under the equity method of accounting or those that result in consolidation of the investee - to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU No. 2016-01 is intended to simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. ASU No. 2016-01 also eliminates certain disclosures related to the fair value of financial instruments and requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. ASU No. 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted this ASU on October 1, 2018. The adoption of ASU No. 2016-01 is not expected to have a material impact on the Company's future consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This ASU is intended to increase transparency and comparability among organizations by requiring the recogni |
Investment Securities
Investment Securities | 12 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Investment Securities | Investment Securities Held to maturity and available for sale investment securities were as follows as of September 30, 2018 and 2017 (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2018 Held to Maturity Mortgage-backed securities ("MBS"): U.S. government agencies $ 1,385 $ 8 $ (21 ) $ 1,372 Private label residential 460 552 (2 ) 1,010 U.S. Treasury and U.S. government agency securities 10,965 — (83 ) 10,882 Total $ 12,810 $ 560 $ (106 ) $ 13,264 Available for Sale MBS: U.S. government agencies $ 231 $ 7 $ (1 ) $ 237 Mutual funds 1,000 — (83 ) 917 Total $ 1,231 $ 7 $ (84 ) $ 1,154 September 30, 2017 Held to Maturity MBS: U.S. government agencies $ 532 $ 11 $ (1 ) $ 542 Private label residential 599 596 (2 ) 1,193 U.S. Treasury and U.S. government agency securities 6,008 10 (9 ) 6,009 Total $ 7,139 $ 617 $ (12 ) $ 7,744 Available for Sale MBS: U.S. government agencies $ 271 $ 18 $ — $ 289 Mutual funds 1,000 — (48 ) 952 Total $ 1,271 $ 18 $ (48 ) $ 1,241 Held to maturity and available for sale investment securities with unrealized losses were as follows as of September 30, 2018 (dollars in thousands): Less Than 12 Months 12 Months or Longer Total Estimated Fair Value Gross Unrealized Losses Qty Estimated Fair Value Gross Unrealized Losses Qty Estimated Fair Value Gross Unrealized Losses Held to Maturity MBS: U.S. government agencies $ 954 $ (20 ) 2 $ 64 $ (1 ) 5 $ 1,018 $ (21 ) Private label residential — — — 50 (2 ) 8 50 (2 ) U.S. Treasury and U.S. government agency securities 7,946 (22 ) 2 2,935 (61 ) 1 10,881 (83 ) Total $ 8,900 $ (42 ) 4 $ 3,049 $ (64 ) 14 $ 11,949 $ (106 ) Available for Sale MBS: U.S. government agencies $ 34 $ (1 ) 1 $ — $ — — $ 34 $ (1 ) Mutual funds — — — 917 (83 ) 1 917 (83 ) Total $ 34 $ (1 ) 1 $ 917 $ (83 ) 1 $ 951 $ (84 ) Held to maturity and available for sale investment securities with unrealized losses were as follows as of September 30, 2017 (dollars in thousands): Less Than 12 Months 12 Months or Longer Total Estimated Fair Value Gross Unrealized Losses Qty Estimated Fair Value Gross Unrealized Losses Qty Estimated Fair Value Gross Unrealized Losses Held to Maturity MBS: U.S. government agencies $ — $ — — $ 114 $ (1 ) 6 $ 114 $ (1 ) Private label residential — — — 85 (2 ) 10 85 (2 ) U.S. Treasury and U.S. government agency securities 2,984 (9 ) 1 — — — 2,984 (9 ) Total $ 2,984 $ (9 ) 1 $ 199 $ (3 ) 16 $ 3,183 $ (12 ) Available for Sale Mutual funds $ — $ — — $ 952 $ (48 ) 1 $ 952 $ (48 ) Total $ — $ — — $ 952 $ (48 ) 1 $ 952 $ (48 ) The Company has evaluated the investment securities in the above tables and has determined that the decline in their value is temporary. The unrealized losses are primarily due to changes in market interest rates and spreads in the market for mortgage-related products. The fair value of these securities is expected to recover as the securities approach their maturity dates and/or as the pricing spreads narrow on mortgage-related securities. The Company has the ability and the intent to hold the investments until the market value recovers. Furthermore, as of September 30, 2018 , management does not have the intent to sell any of the securities classified as available for sale where the estimated fair value is below the recorded value and believes that it is more likely than not that the Company will not have to sell such securities before a recovery of cost (or recorded value if previously written down). The Company bifurcates OTTI into (1) amounts related to credit losses which are recognized through earnings and (2) amounts related to all other factors which are recognized as a component of other comprehensive income (loss). To determine the component of the gross OTTI related to credit losses, the Company compared the amortized cost basis of the OTTI security to the present value of its revised expected cash flows, discounted using its pre-impairment yield. The revised expected cash flow estimates for individual securities are based primarily on an analysis of default rates, prepayment speeds and third-party analytic reports. Significant judgment by management is required in this analysis that includes, but is not limited to, assumptions regarding the collectability of principal and interest, net of related expenses, on the underlying loans. The following table presents a summary of the significant inputs utilized to measure management’s estimates of the credit loss component on OTTI securities as of September 30, 2018 , 2017 and 2016 : Range Weighted Minimum Maximum Average September 30, 2018 Constant prepayment rate 6.00 % 15.00 % 12.91 % Collateral default rate — % 10.42 % 5.03 % Loss severity rate — % 75.00 % 37.25 % September 30, 2017 Constant prepayment rate 6.00 % 15.00 % 10.40 % Collateral default rate 0.03 % 10.75 % 4.84 % Loss severity rate 1.00 % 62.00 % 41.75 % September 30, 2016 Constant prepayment rate 6.00 % 15.00 % 11.29 % Collateral default rate 0.07 % 14.45 % 5.47 % Loss severity rate 1.00 % 73.00 % 42.26 % The following table presents the OTTI recoveries (losses) for the years ended September 30, 2018 , 2017 and 2016 (dollars in thousands): 2018 2017 2016 Held To Maturity Held To Maturity Held To Maturity Total recoveries (OTTI) $ 73 $ 38 $ (29 ) Adjustment for portion of OTTI transferred from other comprehensive income (before income taxes) (1) (5 ) (5 ) (139 ) Net recoveries (OTTI) recognized in earnings (2) $ 68 $ 33 $ (168 ) ________________________ (1) Represents OTTI related to all other factors. (2) Represents OTTI related to credit losses. The following table presents a roll forward of the credit loss component of held to maturity and available for sale debt securities that have been written down for OTTI with the credit loss component recognized in earnings for the years ended September 30, 2018 , 2017 and 2016 (dollars in thousands): 2018 2017 2016 Balance, beginning of year $ 1,301 $ 1,505 $ 1,576 Additions: Additional increases to the amount related to credit loss for which OTTI was previously recognized 14 18 170 Subtractions: Realized losses previously recorded as credit losses (80 ) (171 ) (239 ) Recovery of prior credit loss (82 ) (51 ) (2 ) Balance, end of year $ 1,153 $ 1,301 $ 1,505 During the year ended September 30, 2018 , the Company recorded a $80,000 net realized loss (as a result of investment securities being deemed worthless) on sixteen held to maturity investment securities, all of which had been recognized previously as a credit loss. During the year ended September 30, 2017 , the Company recorded a $171,000 net realized loss (as a result of investment securities being deemed worthless) on twenty-two held to maturity investment securities, all of which had been recognized previously as a credit loss. During the year ended September 30, 2016 , the Company recorded a $239,000 net realized loss (as a result of investment securities being deemed worthless) on twenty held to maturity investment securities, all of which had been recognized previously as a credit loss. The recorded amount of investment securities pledged as collateral for public fund deposits, federal treasury tax and loan deposits and FHLB collateral totaled $12,100,000 and $6,824,000 at September 30, 2018 and 2017 , respectively. The contractual maturities of debt securities at September 30, 2018 are as follows (dollars in thousands). Expected maturities may differ from scheduled maturities due to the prepayment of principal or call provisions. Held to Maturity Available for Sale Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 7,969 $ 7,946 $ — $ — Due after one year to five years 3,965 3,884 — — Due after five years to ten years 67 68 — — Due after ten years 809 1,366 231 237 Total $ 12,810 $ 13,264 $ 231 $ 237 |
Restricted Assets
Restricted Assets | 12 Months Ended |
Sep. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Assets | Restricted Assets Federal Reserve regulations require that the Bank maintain certain minimum reserve balances on hand or on deposit with the FRB, based on a percentage of transaction account deposits. The amounts of the reserve requirement balances as of September 30, 2018 and 2017 were $1,609,000 and $1,658,000 , respectively. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 12 Months Ended |
Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans Receivable and Allowance for Loan Losses | Loans Receivable and Allowance for Loan Losses Loans receivable by portfolio segment consisted of the following at September 30, 2018 and 2017 (dollars in thousands): 2018 2017 Mortgage loans: One- to four-family $ 115,941 $ 118,147 Multi-family 61,928 58,607 Commercial 345,113 328,927 Construction – custom and owner/builder 119,555 117,641 Construction – speculative one- to four-family 15,433 9,918 Construction – commercial 39,590 19,630 Construction – multi-family 10,740 21,327 Construction – land development 3,040 — Land 25,546 23,910 Total mortgage loans 736,886 698,107 Consumer loans: Home equity and second mortgage 37,341 38,420 Other 3,515 3,823 Total consumer loans 40,856 42,243 Commercial business loans 43,053 44,444 Total loans receivable 820,795 784,794 Less: Undisbursed portion of construction loans in process 83,237 82,411 Deferred loan origination fees, net 2,637 2,466 Allowance for loan losses 9,530 9,553 95,404 94,430 Loans receivable, net $ 725,391 $ 690,364 Significant Concentrations of Credit Risk Most of the Company’s lending activity is with customers located in the state of Washington and involves real estate. At September 30, 2018 , the Company had $ 774,227,000 (including $83,237,000 of undisbursed construction loans in process) in loans secured by real estate, which represented 94.3% of total loans receivable. The real estate loan portfolio is primarily secured by one- to four-family properties, multi-family properties, land, and a variety of commercial real estate property types. At September 30, 2018 , there were no concentrations of real estate loans to a specific industry or secured by a specific collateral type that equaled or exceeded 20% of the Company’s total loan portfolio, other than loans secured by one-to four- family properties. The ultimate collectability of a substantial portion of the loan portfolio is susceptible to changes in economic and market conditions in the region and the impact of those changes on the real estate market. The Company typically originates real estate loans with loan-to-value ratios of no greater than 90% . Collateral and/or guarantees are required for all loans. Certain related parties of the Company, principally Bank directors and officers, are loan customers of the Bank in the ordinary course of business. Such related party loans were performing according to their repayment terms at September 30, 2018 and 2017 . Activity in related party loans during the years ended September 30, 2018 , 2017 and 2016 was as follows (dollars in thousands): 2018 2017 2016 Balance, beginning of year $ 741 $ 230 $ 630 New loans or borrowings 368 592 66 Repayments and reclassifications (990 ) (81 ) (466 ) Balance, end of year $ 119 $ 741 $ 230 Loan Segment Risk Characteristics The Company believes that its loan classes are the same as its loan segments. One- To Four-Family Residential Lending: The Company originates both fixed-rate and adjustable-rate loans secured by one- to four-family residences. A portion of the fixed-rate one- to four-family loans are sold in the secondary market for asset/liability management purposes and to generate non-interest income. The Company’s lending policies generally limit the maximum loan-to-value on one- to four-family loans to 90% of the lesser of the appraised value or the purchase price. However, the Company usually obtains private mortgage insurance on the portion of the principal amount that exceeds 80% of the appraised value of the property. Multi-Family Lending : The Company originates loans secured by multi-family dwelling units (more than four units). Multi-family lending generally affords the Company an opportunity to receive interest at rates higher than those generally available from one- to four-family residential lending. However, loans secured by multi-family properties usually are greater in amount, more difficult to evaluate and monitor and, therefore, involve a greater degree of risk than one- to four-family residential mortgage loans. Because payments on loans secured by multi-family properties are often dependent on the successful operation and management of the properties, repayment of such loans may be affected by adverse conditions in the real estate market or economy. The Company attempts to minimize these risks by scrutinizing the financial condition of the borrower, the quality of the collateral and the management of the property securing the loan. Commercial Mortgage Lending : The Company originates commercial real estate loans secured by properties such as office buildings, retail/wholesale facilities, motels, restaurants, mini-storage facilities and other commercial properties. Commercial real estate lending generally affords the Company an opportunity to receive interest at higher rates than those available from one- to four-family residential lending. However, loans secured by such properties usually are greater in amount, more difficult to evaluate and monitor and, therefore, involve a greater degree of risk than one- to four-family residential mortgage loans. Because payments on loans secured by commercial properties are often dependent on the successful operation and management of the properties, repayment of these loans may be affected by adverse conditions in the real estate market or economy. The Company attempts to mitigate these risks by generally limiting the maximum loan-to-value ratio to 80% and scrutinizing the financial condition of the borrower, the quality of the collateral and the management of the property securing the loan. Construction Lending : The Company currently originates the following types of construction loans: custom construction loans, owner/builder construction loans, speculative construction loans, commercial real estate construction loans, multi-family construction loans and land development loans. Construction lending affords the Company the opportunity to achieve higher interest rates and fees with shorter terms to maturity than does its single-family permanent mortgage lending. Construction lending, however, is generally considered to involve a higher degree of risk than one- to four family residential lending because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost of the project. The nature of these loans is such that they are generally more difficult to evaluate and monitor. If the estimated cost of construction proves to be inaccurate, the Company may be required to advance funds beyond the amount originally committed to complete the project. If the estimate of value upon completion proves to be inaccurate, the Company may be confronted with a project whose value is insufficient to assure full repayment, and the Company may incur a loss. Projects may also be jeopardized by disagreements between borrowers and builders and by the failure of builders to pay subcontractors. Loans to construct homes for which no purchaser has been identified carry more risk because the payoff for the loan depends on the builder’s ability to sell the property prior to the time that the construction loan is due. The Company attempts to mitigate these risks by adhering to its underwriting policies, disbursement procedures and monitoring practices. Construction Lending – Custom and Owner/Builder: Custom construction loans are made to home builders who, at the time of construction, have a signed contract with a home buyer who has a commitment to purchase the finished home. Owner/builder construction loans are originated to home owners rather than home builders and are typically refinanced into permanent loans at the completion of construction. Construction Lending – Speculative One- To Four-Family: Speculative one-to four-family construction loans are made to home builders and are termed “speculative” because the home builder does not have, at the time of the loan origination, a signed contract with a home buyer who has a commitment for permanent financing with the Company or another lender for the finished home. The home buyer may be identified either during or after the construction period. Construction Lending – Commercial: Commercial construction loans are originated to construct properties such as office buildings, hotels, retail rental space and mini-storage facilities. Construction Lending – Multi-Family: Multi-family construction loans are originated to construct apartment buildings and condominium projects. Construction Lending - Land Development: Land development loans are originated to real estate developers for the purpose of developing residential subdivisions. The Company is currently originating land development loans on a limited basis. Land Lending : The Company originates loans for the acquisition of land upon which the purchaser can then build or make improvements necessary to build or to sell as improved lots. Loans secured by undeveloped land or improved lots involve greater risks than one- to four-family residential mortgage loans because these loans are more difficult to evaluate. If the estimate of value proves to be inaccurate, in the event of default or foreclosure, the Company may be confronted with a property value which is insufficient to assure full repayment. The Company attempts to minimize this risk by generally limiting the maximum loan-to-value ratio on land loans to 75% . Consumer Lending – Home Equity and Second Mortgage: The Company originates home equity lines of credit and second mortgage loans. Home equity lines of credit and second mortgage loans have a greater credit risk than one- to four-family residential mortgage loans because they are secured by mortgages subordinated to the existing first mortgage on the property, which may or may not be held by the Company. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the collateral and the credit-worthiness of the borrower. Consumer Lending – Other: The Company originates other consumer loans, which include automobile loans, boat loans, motorcycle loans, recreational vehicle loans, savings account loans and unsecured loans. Other consumer loans generally have shorter terms to maturity than mortgage loans. Other consumer loans generally involve a greater degree of risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by rapidly depreciating assets such as automobiles. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the credit-worthiness of the borrower. Commercial Business Lending : The Company originates commercial business loans which are generally secured by business equipment, accounts receivable, inventory or other property. The Company also generally obtains personal guarantees from the business owners based on a review of personal financial statements. Commercial business lending generally involves risks that are different from those associated with residential and commercial real estate lending. Real estate lending is generally considered to be collateral based lending with loan amounts based on predetermined loan to collateral values, and liquidation of the underlying real estate collateral is viewed as the primary source of repayment in the event of borrower default. Although commercial business loans are often collateralized by equipment, inventory, accounts receivable or other business assets, the liquidation of collateral in the event of a borrower default is often an insufficient source of repayment, because accounts receivable may be uncollectible and inventories and equipment may be obsolete or of limited use. Accordingly, the repayment of a commercial business loan depends primarily on the credit-worthiness of the borrower (and any guarantors), while the liquidation of collateral is a secondary and potentially insufficient source of repayment. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the management of the business and the credit-worthiness of the borrowers and the guarantors. Allowance for Loan Losses The following table sets forth information for the year ended September 30, 2018 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands): Beginning Allowance Provision for (Recapture of) Loan Losses Charge- offs Recoveries Ending Allowance Mortgage loans: One- to four-family $ 1,082 $ 4 $ — $ — $ 1,086 Multi-family 447 (14 ) — — 433 Commercial 4,184 92 (28 ) — 4,248 Construction – custom and owner/builder 699 (28 ) — — 671 Construction – speculative one- to four-family 128 37 — 13 178 Construction – commercial 303 260 — — 563 Construction – multi-family 173 (38 ) — — 135 Construction – land development — 49 — — 49 Land 918 (71 ) (22 ) 19 844 Consumer loans: Home equity and second mortgage 983 (334 ) — — 649 Other 121 1 (6 ) 1 117 Commercial business loans 515 42 — — 557 Total $ 9,553 $ — $ (56 ) $ 33 $ 9,530 The following table sets forth information for the year ended September 30, 2017 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands): Beginning Allowance Provision for (Recapture of) Loan Losses Charge- offs Recoveries Ending Allowance Mortgage loans: One- to four-family $ 1,239 $ (178 ) $ — $ 21 $ 1,082 Multi-family 473 (26 ) — — 447 Commercial 4,384 (1,248 ) (13 ) 1,061 4,184 Construction – custom and owner/builder 619 80 — — 699 Construction – speculative one- to four-family 130 (8 ) — 6 128 Construction – commercial 268 35 — — 303 Construction – multi-family 316 (143 ) — — 173 Land 820 189 (110 ) 19 918 Consumer loans: Home equity and second mortgage 939 44 — — 983 Other 156 (28 ) (10 ) 3 121 Commercial business loans 482 33 — — 515 Total $ 9,826 $ (1,250 ) $ (133 ) $ 1,110 $ 9,553 The following table sets forth information for the year ended September 30, 2016 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands): Beginning Allowance Provision for (Recapture of) Loan Losses Charge- offs Recoveries Ending Allowance Mortgage loans: One- to four-family $ 1,480 $ (225 ) $ (72 ) $ 56 $ 1,239 Multi-family 392 81 — — 473 Commercial 4,065 528 (209 ) — 4,384 Construction – custom and owner/builder 451 168 — — 619 Construction – speculative one- to four-family 123 5 — 2 130 Construction – commercial 426 (158 ) — — 268 Construction – multi-family 283 (148 ) — 181 316 Land 1,021 (164 ) (61 ) 24 820 Consumer loans: Home equity and second mortgage 1,073 (116 ) (18 ) — 939 Other 187 (25 ) (8 ) 2 156 Commercial business loans 423 54 — 5 482 Total $ 9,924 $ — $ (368 ) $ 270 $ 9,826 The following table presents information on loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at September 30, 2018 (dollars in thousands): Allowance for Loan Losses Recorded Investment in Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Mortgage loans: One- to four-family $ — $ 1,086 $ 1,086 $ 1,054 $ 114,887 $ 115,941 Multi-family — 433 433 — 61,928 61,928 Commercial — 4,248 4,248 2,446 342,667 345,113 Construction – custom and owner/ builder — 671 671 — 67,024 67,024 Construction – speculative one- to four-family — 178 178 — 7,107 7,107 Construction – commercial — 563 563 — 23,440 23,440 Construction – multi-family — 135 135 — 5,983 5,983 Construction – land development — 49 49 — 1,567 1,567 Land 34 810 844 243 25,303 25,546 Consumer loans: Home equity and second mortgage — 649 649 359 36,982 37,341 Other — 117 117 — 3,515 3,515 Commercial business loans 63 494 557 170 42,883 43,053 Total $ 97 $ 9,433 $ 9,530 $ 4,272 $ 733,286 $ 737,558 The following table presents information on loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at September 30, 2017 (dollars in thousands): Allowance for Loan Losses Recorded Investment in Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Mortgage loans: One- to four-family $ — $ 1,082 $ 1,082 $ 1,443 $ 116,704 $ 118,147 Multi-family — 447 447 — 58,607 58,607 Commercial 26 4,158 4,184 3,873 325,054 328,927 Construction – custom and owner/ builder — 699 699 — 63,538 63,538 Construction – speculative one- to four-family — 128 128 — 4,639 4,639 Construction – commercial — 303 303 — 11,016 11,016 Construction – multi-family — 173 173 — 6,912 6,912 Land 125 793 918 1,119 22,791 23,910 Consumer loans: Home equity and second mortgage 325 658 983 557 37,863 38,420 Other — 121 121 — 3,823 3,823 Commercial business loans — 515 515 — 44,444 44,444 Total $ 476 $ 9,077 $ 9,553 $ 6,992 $ 695,391 $ 702,383 The following table presents an analysis of loans by aging category and portfolio segment at September 30, 2018 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due Non- Accrual(1) Past Due 90 Days or More and Still Accruing Total Past Due Current Total Loans Mortgage loans: One- to four-family $ 557 $ — $ 545 $ — $ 1,102 $ 114,839 $ 115,941 Multi-family — — — — — 61,928 61,928 Commercial 574 — — — 574 344,539 345,113 Construction – custom and owner/ builder — — — — — 67,024 67,024 Construction – speculative one- to four-family — — — — — 7,107 7,107 Construction – commercial — — — — — 23,440 23,440 Construction – multi-family — — — — — 5,983 5,983 Construction – land development — — — — — 1,567 1,567 Land 40 — 243 — 283 25,263 25,546 Consumer loans: Home equity and second mortgage 42 — 359 — 401 36,940 37,341 Other 10 16 — — 26 3,489 3,515 Commercial business loans — — 170 — 170 42,883 43,053 Total $ 1,223 $ 16 $ 1,317 $ — $ 2,556 $ 735,002 $ 737,558 __________________ (1) Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual. The following table presents an analysis of loans by aging category and portfolio segment at September 30, 2017 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due Non- Accrual(1) Past Due 90 Days or More and Still Accruing Total Past Due Current Total Loans Mortgage loans: One- to four-family $ 193 $ — $ 874 $ — $ 1,067 $ 117,080 $ 118,147 Multi-family — — — — — 58,607 58,607 Commercial — 107 213 — 320 328,607 328,927 Construction – custom and owner/ builder — — — — — 63,538 63,538 Construction – speculative one- to four-family — — — — — 4,639 4,639 Construction – commercial — — — — — 11,016 11,016 Construction – multi-family — — — — — 6,912 6,912 Land — — 566 — 566 23,344 23,910 Consumer loans: Home equity and second mortgage 56 — 258 — 314 38,106 38,420 Other 36 — — — 36 3,787 3,823 Commercial business loans 110 — — — 110 44,334 44,444 Total $ 395 $ 107 $ 1,911 $ — $ 2,413 $ 699,970 $ 702,383 ___________________ (1) Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual. Credit Quality Indicators The Company uses credit risk grades which reflect the Company’s assessment of a loan’s risk or loss potential. The Company categorizes loans into risk grade categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors such as the estimated fair value of the collateral. The Company uses the following definitions for credit risk ratings as part of the on-going monitoring of the credit quality of its loan portfolio: Pass: Pass loans are defined as those loans that meet acceptable quality underwriting standards. Watch: Watch loans are defined as those loans that still exhibit acceptable quality but have some concerns that justify greater attention. If these concerns are not corrected, a potential for further adverse categorization exists. These concerns could relate to a specific condition peculiar to the borrower, its industry segment or the general economic environment. Special Mention: Special mention loans are defined as those loans deemed by management to have some potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the payment prospects of the loan. Substandard : Substandard loans are defined as those loans that are inadequately protected by the current net worth and paying capacity of the obligor, or of the collateral pledged. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. If the weakness or weaknesses are not corrected, there is the distinct possibility that some loss will be sustained. Loss: Loans in this classification are considered uncollectible and of such little value that continuance as an asset is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this loan even though partial recovery may be realized in the future. At September 30, 2018 and 2017, there were no loans classified as loss. The following table presents an analysis of loans by credit quality indicator and portfolio segment at September 30, 2018 (dollars in thousands): Loan Grades Pass Watch Special Mention Substandard Total Mortgage loans: One- to four-family $ 113,148 $ 882 $ 581 $ 1,330 $ 115,941 Multi-family 61,928 — — — 61,928 Commercial 334,908 8,375 988 842 345,113 Construction – custom and owner / builder 66,720 304 — — 67,024 Construction – speculative one- to four-family 7,107 — — — 7,107 Construction – commercial 23,440 — — — 23,440 Construction – multi-family 5,983 — — — 5,983 Construction – land development 1,567 — — — 1,567 Land 22,810 988 1,505 243 25,546 Consumer loans: Home equity and second mortgage 36,697 82 — 562 37,341 Other 3,480 — — 35 3,515 Commercial business loans 42,812 22 49 170 43,053 Total $ 720,600 $ 10,653 $ 3,123 $ 3,182 $ 737,558 The following table presents an analysis of loans by credit quality indicator and portfolio segment at September 30, 2017 (dollars in thousands): Loan Grades Pass Watch Special Mention Substandard Total Mortgage loans: One- to four-family $ 115,481 $ 422 $ 644 $ 1,600 $ 118,147 Multi-family 56,857 — 1,750 — 58,607 Commercial 318,717 6,059 3,540 611 328,927 Construction – custom and owner / builder 63,210 328 — — 63,538 Construction – speculative one- to four-family 4,639 — — — 4,639 Construction – commercial 11,016 — — — 11,016 Construction – multi-family 6,912 — — — 6,912 Land 20,528 1,022 1,794 566 23,910 Consumer loans: Home equity and second mortgage 37,828 152 — 440 38,420 Other 3,787 — — 36 3,823 Commercial business loans 43,416 973 55 — 44,444 Total $ 682,391 $ 8,956 $ 7,783 $ 3,253 $ 702,383 The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2018 (dollars in thousands): September 30, 2018 For the Year Ended September 30, 2018 Recorded Investment Unpaid Principal Balance (Loan Balance Plus Charge Off) Related Allowance Average Recorded Investment Interest Income Recognized Cash Basis Interest Income Recognized With no related allowance recorded: Mortgage loans: One- to four-family $ 1,054 $ 1,200 $ — $ 1,422 $ 80 $ 69 Commercial 2,446 2,446 — 2,389 121 93 Land 90 195 — 283 11 10 Consumer loans: Home equity and second mortgage 359 359 — 210 3 3 Subtotal 3,949 4,200 — 4,304 215 175 With an allowance recorded: Mortgage loans: One- to four-family — — — 9 — — Commercial — — — 760 28 21 Land 153 153 34 383 9 8 Consumer loans: Home equity and second mortgage — — — 310 16 13 Commercial business loans 170 170 63 141 — — Subtotal 323 323 97 1,603 53 42 Total: Mortgage loans: One- to four-family 1,054 1,200 — 1,431 80 69 Commercial 2,446 2,446 — 3,149 149 114 Land 243 348 34 666 20 18 Consumer loans: Home equity and second mortgage 359 359 — 520 19 16 Commercial business loans 170 170 63 141 — — Total $ 4,272 $ 4,523 $ 97 $ 5,907 $ 268 $ 217 The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2017 (dollars in thousands): September 30, 2017 For the Year Ended September 30, 2017 Recorded Unpaid Principal Related Average Interest Cash Basis With no related allowance recorded: Mortgage loans: One- to four-family $ 1,443 $ 1,589 $ — $ 1,108 $ 68 $ 62 Commercial 1,967 1,967 — 3,901 188 143 Construction – custom and owner / builder — — — 147 7 7 Land 297 410 — 512 8 6 Consumer loans: Home equity and second mortgage 123 123 — 284 — — Commercial business loans — — — 11 — — Subtotal 3,830 4,089 — 5,963 271 218 With an allowance recorded: Mortgage loans: One- to four-family — — — 721 50 38 Commercial 1,906 1,906 26 3,326 182 144 Land 822 881 125 666 35 29 Consumer loans: Home equity and second mortgage 434 434 325 530 29 26 Other — — — 17 — — Subtotal 3,162 3,221 476 5,260 296 237 Total: Mortgage loans: One- to four-family 1,443 1,589 — 1,829 118 100 Commercial 3,873 3,873 26 7,227 370 287 Construction – custom and owner / builder — — — 147 7 7 Land 1,119 1,291 125 1,178 43 35 Consumer loans: Home equity and second mortgage 557 557 325 814 29 26 Other — — — 17 — — Commercial business loans — — — 11 — — Total $ 6,992 $ 7,310 $ 476 $ 11,223 $ 567 $ 455 The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2016 (dollars in thousands): September 30, 2016 For the Year Ended September 30, 2016 Recorded Unpaid Principal Related Average Interest Cash Basis With no related allowance recorded: Mortgage loans: One- to four-family $ 914 $ 1,060 $ — $ 1,349 $ 38 $ 38 Multi-family — — — 152 — — Commercial 7,566 8,685 — 7,784 421 330 Construction – custom and owner / builder 367 367 — 73 — — Land 693 1,101 — 839 16 12 Consumer loans: Home equity and second mortgage 402 593 — 264 — — Commercial business loans — — — 15 — — Subtotal 9,942 11,806 — 10,476 475 380 With an allowance recorded: Mortgage loans: One- to four-family 1,350 1,350 70 1,921 118 89 Multi-family — — — 655 — — Commercial 3,743 3,743 413 4,181 275 215 Land 575 575 53 604 39 32 Consumer loans: Home equity and second mortgage 597 597 227 709 44 40 Other 30 30 13 33 2 2 Subtotal 6,295 6,295 776 8,103 478 378 Total: Mortgage loans: One- to four-family 2,264 2,410 70 3,270 156 127 Multi-family — — — 807 — — Commercial 11,309 12,428 413 11,965 696 545 Construction – custom and owner / builder 367 367 — 73 — — Land 1,268 1,676 53 1,443 55 44 Consumer loans: Home equity and second mortgage 999 1,190 227 973 44 40 Other 30 30 13 33 2 2 Commercial business loans — — — 15 — — Total $ 16,237 $ 18,101 $ 776 $ 18,579 $ 953 $ 758 The Company had $3,278,000 in TDRs included in impaired loans at September 30, 2018 and had no commitments to lend additional funds on these loans. The Company had $3,595,000 in TDRs included in impaired loans at September 30, 2017 and had no commitments to lend additional funds on these loans. The allowance for loan losses allocated to TDRs at September 30, 2018 and 2017 was $97,000 and $10,000 , respectively. The following tables set forth information with respect to the Company’s TDRs by interest accrual status as of September 30, 2018 and 2017 (dollars in thousands): 2018 Accruing Non- Accrual Total Mortgage loans: One- to four-family $ 509 $ — $ 509 Commercial 2,446 — 2,446 Land — 153 153 Commercial business loans — 170 170 Total $ 2,955 $ 323 $ 3,278 2017 Accruing Non- Accrual Total Mortgage loans: One- to four-family $ 569 $ — $ 569 Commercial 2,219 — 2,219 Land 554 253 807 Total $ 3,342 $ 253 $ 3,595 There were three new TDRs for the year ended September 30, 2018. There were no new TDRs during the years ended September 30, 2017 and 2016. The following table sets forth information with respect to the Company's TDRs, by portfolio segment, during the year ended September 30, 2018 (dollars in thousands): 2018 Number of Contracts Pre-Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment End of Period Balance Land loans (1) 1 $ 244 $ 155 $ 153 Commercial business loans (2) 2 183 183 170 Total 3 $ 427 $ 338 $ 323 (1) Modification was a result of a reduction in principal balance. (2) Modifications were a result of reduction in monthly payment amounts. There were no TDRs for which there was a payment default within the first 12 months of modification during the years ended September 30, 2018 , 2017 or 2016 . |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment consisted of the following at September 30, 2018 and 2017 (dollars in thousands): 2018 2017 Land $ 4,400 $ 4,402 Buildings and improvements 20,636 20,167 Furniture and equipment 8,026 7,935 Property held for future expansion 129 129 Construction and purchases in progress 566 149 33,757 32,782 Less accumulated depreciation 14,804 14,364 Premises and equipment, net $ 18,953 $ 18,418 The Company leases certain premises under operating lease agreements. Certain leases contain renewal options from five to ten years and escalation clauses. Total rental expense was $206,000 , $275,000 and $287,000 for the years ended September 30, 2018 , 2017 and 2016 , respectively, which is included in premises and equipment expense in the accompanying consolidated statements of income. Minimum net rental commitments under non-cancellable leases having an original or remaining term of more than one year for fiscal years ending subsequent to September 30, 2018 are as follows (dollars in thousands): 2019 $ 201 2020 165 2021 124 Total minimum payments required $ 490 |
OREO and Other Repossessed Asse
OREO and Other Repossessed Assets | 12 Months Ended |
Sep. 30, 2018 | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | |
OREO and Other Repossessed Assets | OREO and Other Repossessed Assets The following table presents the activity related to OREO and other repossessed assets for the years ended September 30, 2018 and 2017 (dollars in thousands): 2018 2017 Amount Number Number Balance, beginning of year $ 3,301 16 $ 4,117 23 Additions to OREO and other repossessed assets 324 2 751 4 Writedowns (248 ) — (42 ) — Sales of OREO and other repossessed assets (1,464 ) (6 ) (1,525 ) (11 ) Balance, end of year $ 1,913 12 $ 3,301 16 At September 30, 2018 , OREO and other repossessed assets consisted of 12 OREO properties in Washington, with balances ranging from $13,000 to $874,000 . At September 30, 2017 , OREO and other repossessed assets consisted of 15 OREO properties and one other repossessed asset in Washington, with balances ranging from $13,000 to $948,000 . The Company recorded net gains on sales of OREO and other repossessed assets of $229,000 , $54,000 , and $47,000 for the years ended September 30, 2018, 2017 and 2016, respectively. Gains and losses on sales of OREO and other repossessed assets are recorded in the OREO and other repossessed assets, net category in non-interest expense in the accompanying consolidated statements of income. At September 30, 2018, there were no foreclosed residential real estate properties held in OREO as a result of obtaining physical possession and there were no one- to four-family properties in the process of foreclosure. At September 30, 2017, the recorded amount of foreclosed residential real estate properties held in OREO as a result of obtaining physical possession was $875,000 and the amount of one- to four-family properties in the process of foreclosure totaled $100,000 . |
MSRs
MSRs | 12 Months Ended |
Sep. 30, 2018 | |
Transfers and Servicing [Abstract] | |
MSRs | MSRs The Company services loans for Freddie Mac and for secondary market purchasers of the guaranteed portion of SBA loans; such loans are not included in the accompanying consolidated balance sheets. The principal amount of loans serviced for Freddie Mac at September 30, 2018 , 2017 and 2016 was $370,928,000 , $358,173,000 and $340,308,000 , respectively. The guaranteed principal amount of SBA loans serviced for others at September 30, 2018 , 2017 and 2016 was $ 754,000 , $697,000 and $319,000 , respectively. The following is an analysis of the changes in MSRs for the years ended September 30, 2018, 2017 and 2016 (dollars in thousands): 2018 2017 2016 Balance, beginning of year $ 1,825 $ 1,573 $ 1,478 Additions 694 739 650 Amortization (491 ) (487 ) (555 ) Balance, end of year $ 2,028 $ 1,825 $ 1,573 At September 30, 2018 , 2017 and 2016 , the estimated fair value of MSRs totaled $4,171,000 , $3,556,000 and $2,865,000 , respectively. The Freddie Mac MSRs' fair values at September 30, 2018 , 2017 and 2016 were estimated using discounted cash flow analyses with average discount rates of 8.99% , 9.52% and 9.52% , respectively, and average prepayment speed factors of 132 , 159 and 209 , respectively. At September 30, 2018 , 2017 and 2016, the SBA MSRs were insignificant. At September 30, 2018, 2017 and 2016, there were no valuation allowances on MSRs. |
Deposits
Deposits | 12 Months Ended |
Sep. 30, 2018 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits consisted of the following at September 30, 2018 and 2017 (dollars in thousands): 2018 2017 Non-interest-bearing demand $ 233,258 $ 205,952 NOW checking 225,290 220,315 Savings 151,404 140,987 Money market 137,746 131,002 Certificates of deposit 141,808 139,642 Total $ 889,506 $ 837,898 Individual certificates of deposit in amounts of $250,000 or greater totaled $18,164,000 and $15,601,000 at September 30, 2018 and 2017 , respectively. The Company had brokered deposits totaling $17,202,000 and $15,642,000 at September 30, 2018 and 2017, respectively. Scheduled maturities of certificates of deposit for future years ending September 30 are as follows (dollars in thousands): 2019 $ 76,157 2020 32,004 2021 14,412 2022 11,991 2023 7,244 Total $ 141,808 Interest expense on deposits by account type was as follows for the years ended September 30, 2018 , 2017 and 2016 (dollars in thousands): 2018 2017 2016 NOW checking $ 451 $ 460 $ 456 Savings 85 78 64 Money market 722 434 327 Certificates of deposit 1,520 1,246 1,194 Total $ 2,778 $ 2,218 $ 2,041 |
FHLB Borrowings and Other Borro
FHLB Borrowings and Other Borrowings | 12 Months Ended |
Sep. 30, 2018 | |
Advances from Federal Home Loan Banks [Abstract] | |
FHLB Borrowings and Other Borrowings | FHLB Borrowings and Other Borrowings The Bank has long- and short-term borrowing lines with the FHLB with total credit on the lines equal to 45% of the Bank’s total assets, limited by available collateral. The Bank had no FHLB borrowings outstanding at September 30, 2018 and 2017 . During the year ended September 30, 2017, the Company incurred a $282,000 prepayment penalty on two $15,000,000 FHLB borrowings that were repaid before their scheduled maturity dates. Under the Advances, Pledge and Security Agreement entered into with the FHLB ("FHLB Borrowing Agreement"), virtually all of the Bank’s assets, not otherwise encumbered, are pledged as collateral for borrowings. The Bank also has a letter of credit ("LOC") with the FHLB for the purpose of collateralizing Washington State public deposits. The LOC amount reduces the Bank's available borrowings under the FHLB Borrowing Agreement. The LOC had a limit of $23,000,000 as of September 30, 2018, all of which was available to draw upon. The Bank also maintains a short-term borrowing line with the FRB with total credit based on eligible collateral. At September 30, 2018 the Bank had a borrowing capacity on this line of $76,703,000 . The Bank had no outstanding borrowings on this line at September 30, 2018 and 2017. The Bank has a short-term $10,000,000 overnight borrowing line with Pacific Coast Bankers' Bank. The borrowing line may be reduced or withdrawn at any time. The Bank had no outstanding borrowings on this line at September 30, 2018 and 2017 . |
Other Liabilities and Accrued E
Other Liabilities and Accrued Expenses | 12 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Other Liabilities and Accrued Expenses | Other Liabilities and Accrued Expenses Other liabilities and accrued expenses were comprised of the following at September 30, 2018 and 2017 (dollars in thousands): 2018 2017 Accrued deferred compensation, profit sharing plans and bonuses payable $ 1,235 $ 1,134 Accrued interest payable on deposits 225 161 Accounts payable and accrued expenses - other 2,667 1,831 Total other liabilities and accrued expenses $ 4,127 $ 3,126 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the federal government enacted the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act significantly revised the future ongoing federal corporate income tax by, among other things, decreasing the federal corporate income tax rate to 21.0% from 35.0% effective January 1, 2018. As the Company has a September 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a blended federal income tax rate of approximately 24.5% for the Company's fiscal year ended September 30, 2018, and 21.0% for subsequent fiscal years. In addition, the reduction of the corporate federal income tax rate required the Company to revalue its deferred tax assets and liabilities based on the lower federal income tax rate of 21.0%. As a result of the Tax Act, during the quarter ended December 31, 2017, the Company recorded a one-time income tax expense of $548,000 in conjunction with remeasuring its net deferred tax assets. The impact of using the 24.5% blended federal income tax rate for the year ended September 30, 2018 versus a 35.0% rate reduced the provision for income taxes by approximately $2.21 million , which was partially offset by the $548,000 one-time net deferred tax asset remeasurement. The components of the provision for income taxes for the years ended September 30, 2018 , 2017 and 2016 were as follows (dollars in thousands): 2018 2017 2016 Current: Federal $ 4,900 $ 6,656 $ 4,618 State 4 35 — Deferred 797 385 283 Provision for income taxes $ 5,701 $ 7,076 $ 4,901 At September 30, 2018 the Company had income taxes payable of $151,000 , which is included in other liabilities in the accompanying 2018 consolidated balance sheet. At September 30, 2017 the Company had income taxes receivable of $559,000 , which is included in other assets in the accompanying 2017 consolidated balance sheet. The components of the Company’s deferred tax assets and liabilities at September 30, 2018 and 2017 were as follows (dollars in thousands): 2018 2017 Deferred Tax Assets Allowance for loan losses $ 2,021 $ 3,380 Allowance for OREO losses 311 443 Unearned ESOP shares 32 148 Core deposit intangible 31 103 OTTI credit impairment on investment securities 104 173 Accrued interest on loans 10 29 Net unrealized losses on investment securities 42 66 Deferred compensation and bonuses 56 94 Reserve for loan commitments 43 75 Other 29 39 Total deferred tax assets 2,679 4,550 Deferred Tax Liabilities Goodwill 1,107 1,714 MSRs 426 639 Depreciation 283 480 Loan fees/costs 121 — FHLB stock dividends 82 137 Prepaid expenses 74 140 Other 2 35 Total deferred tax liabilities 2,095 3,145 Net deferred tax assets $ 584 $ 1,405 The provision for income taxes for the years ended September 30, 2018 , 2017 and 2016 differs from that computed at the federal statutory corporate tax rate as follows (dollars in thousands): 2018 2017 2016 Expected federal income tax provision at statutory rate $ 5,500 $ 7,435 $ 5,160 Net impact of the Tax Act 548 — — BOLI income (134 ) (191 ) (189 ) Dividends on ESOP (71 ) (102 ) (83 ) Stock options tax effect (157 ) (188 ) — Other, net 15 122 13 Provision for income taxes $ 5,701 $ 7,076 $ 4,901 No valuation allowance for net deferred tax assets was recorded as of September 30, 2018 and 2017, as management believes that it is more likely than not that all of the net deferred tax assets will be realized based on management's expectations of future taxable income and/or because they were supported by recoverable taxes paid in prior years. |
Employee Stock Ownership and 40
Employee Stock Ownership and 401(k) Plan | 12 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Employee Stock Ownership and 401(k) Plan | Employee Stock Ownership and 401(k) Plan The Timberland Bank Employee Stock Ownership and 401(k) Plan (“KSOP”) is comprised of two components, the ESOP and the 401(k) Plan. The KSOP benefits employees with at least one year of service who are 21 years of age or older. The Bank may fund the ESOP with contributions of cash or stock, and may fund the 401(k) Plan with contributions of cash. Employee vesting occurs over six years. ESOP In January 1998, the ESOP borrowed $7,930,000 from the Company to purchase 1,058,000 shares of common stock of the Company. The loan is being repaid primarily from the Bank’s contributions to the ESOP and is scheduled to be fully repaid by March 31, 2019. The interest rate on the loan is 8.5% . Interest expense on the ESOP debt was $53,000 , $96,000 and $136,000 for the years ended September 30, 2018 , 2017 and 2016 , respectively. The balance of the loan at September 30, 2018 was $285,000 . The amount of the Bank's annual contribution is discretionary, except that it must be sufficient to enable the ESOP to service its debt. All dividends received by the ESOP are used to pay debt service. Dividends of $291,000 , $293,000 and $243,000 were used to service the debt during the years ended September 30, 2018, 2017 and 2016, respectively. As the Plan makes each payment of principal and interest, an appropriate percentage of stock is released and allocated annually to eligible employee accounts, in accordance with applicable regulations. As of September 30, 2018 , an aggregate of 588,717 ESOP shares, which were previously released for allocation to participants, had been distributed to participants. Shares held by the ESOP as of September 30, 2018 , 2017 and 2016 were classified as follows: 2018 2017 2016 Unallocated shares 17,639 52,905 88,171 Shares released for allocation 451,644 489,665 535,927 Total ESOP shares 469,283 542,570 624,098 The approximate fair market value of the ESOP’s unallocated shares at September 30, 2018 , 2017 and 2016 was $551,000 , $1,658,000 and $1,389,000 , respectively. Compensation expense recognized under the ESOP for the years ended September 30, 2018 , 2017 and 2016 was $823,000 , $495,000 , and $233,000 , respectively. 401(k) Plan Eligible employees may contribute a portion of their wages to the 401(k) Plan up to the maximum established under the Internal Revenue Code. Contributions by the Bank are at the discretion of the Board except for a safe harbor contribution of 3% of eligible employees' wages, which is mandatory according to the plan document. Bank contributions totaled $379,000 , $358,000 and $333,000 for the years ended September 30, 2018 , 2017 and 2016 , respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Sep. 30, 2018 | |
Share-based Compensation [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Under the Company’s 2003 Stock Option Plan, the Company was able to grant options for up to 300,000 shares of common stock to employees, officers, directors and directors emeriti. Under the Company's 2014 Equity Incentive Plan, the Company is able to grant options and awards of restricted stock (with or without performance measures) for up to 352,366 shares of common stock to employees, officers, directors and directors emeriti. Shares issued may be purchased in the open market or may be issued from authorized and unissued shares. The exercise price of each option equals the fair market value of the Company’s common stock on the date of grant. Generally, options and restricted stock vest in 20% annual installments on each of the five anniversaries from the date of the grant, and options generally have a maximum contractual term of ten years from the date of the grant. At September 30, 2018 , there were 71,416 shares of common stock available which may be awarded as options or restricted stock pursuant to future grants under the 2014 Equity Incentive Plan. At both September 30, 2018 and 2017 there were no unvested restricted stock awards. There were no restricted stock grants awarded during the years ended September 30, 2018, 2017 and 2016. Stock option activity for the years ended September 30, 2018 , 2017 and 2016 is summarized as follows: Number of Weighted Average Outstanding September 30, 2015 341,300 $ 8.73 Options granted 55,750 15.67 Options exercised (21,020 ) 7.56 Options forfeited (2,900 ) 9.96 Outstanding September 30, 2016 373,130 9.82 Options granted 58,250 29.69 Options exercised (46,310 ) 7.17 Options forfeited (4,950 ) 6.28 Outstanding September 30, 2017 380,120 13.23 Options granted 45,950 31.80 Options exercised (40,100 ) 7.92 Options forfeited (5,150 ) 13.39 Outstanding September 30, 2018 380,820 $ 16.03 The aggregate intrinsic value of options exercised during the years ended September 30, 2018 and 2017 was $894,000 and $659,000 , respectively. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards with the weighted average assumptions noted in the following table. The risk-free interest rate is based on the rate of a U.S. Treasury security with a similar term as the expected life of the stock option at the particular grant date. The expected life is based on historical data, vesting terms and estimated exercise dates. The expected dividend yield is based on the most recent quarterly dividend on an annualized basis in effect at the time the options were granted, adjusted, if appropriate, for management's expectations regarding future dividends. The expected volatility is based on historical volatility of the Company’s stock price. There were 55,750 options granted during the year ended September 30, 2016 with an aggregate grant date fair value of $81,000 . There were 58,250 options granted during the year ended September 30, 2017 with an aggregate grant date fair value of $224,000 . There were 45,950 options granted during the year ended September 30, 2018 with an aggregate grant date fair value of $206,000 . The weighted average assumptions for options granted during the years ended September 30, 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Expected volatility 17 % 16 % 16 % Expected life (in years) 5 5 5 Expected dividend yield 2.61 % 1.85 % 3.00 % Risk free interest rate 2.97 % 1.89 % 1.12 % Grant date fair value per share $ 4.48 $ 3.84 $ 1.46 There were 76,450 options that vested during the year ended September 30, 2018 with a total fair value of $181,000 . There were 69,800 options that vested during the year ended September 30, 2017 with a total fair value of $145,000 . There were 65,100 options that vested during the year ended September 30, 2016 with a total fair value of $144,000 . At September 30, 2018 there were 196,750 unvested options with an aggregate grant date fair value of $582,000 , all of which the Company assumes will vest. The unvested options had an aggregate intrinsic value of $2,098,000 at September 30, 2018 . At September 30, 2017 there were 231,850 unvested options with an aggregate grant date fair value of $569,000 . Additional information regarding options outstanding at September 30, 2018 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices ($) Number Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Number Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) $ 4.01 - 4.55 2,500 $ 4.23 2.3 2,500 $ 4.23 2.3 5.86 - 6.00 28,550 5.96 4.1 28,550 5.96 4.1 9.00 72,800 9.00 5.1 54,600 9.00 5.1 10.26 - 10.71 121,320 10.58 6.5 67,420 10.56 6.5 15.67 52,200 15.67 8.0 19,500 15.67 8.0 29.69 57,500 29.69 9.0 11,500 $ 29.69 9.0 31.80 45,950 31.80 10.0 — N/A N/A 380,820 $ 16.03 7.0 184,070 $ 11.04 5.9 The aggregate intrinsic value of options outstanding at September 30, 2018 , 2017 and 2016 was $5,813,000 , $6,882,000 , and $2,212,000 , respectively. As of September 30, 2018, unrecognized compensation cost related to non-vested stock options was $521,000 , which is expected to be recognized over a weighted average period of 2.46 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business the Company is party to financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit risk not recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments as it does for on-balance-sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit - worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. However, such loan to value ratios will subsequently change, based on increases and decreases in the supporting collateral values. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate, land and income-producing commercial properties. A summary of the Company’s commitments at September 30, 2018 and 2017 is as follows (dollars in thousands): 2018 2017 Undisbursed portion of construction loans in process (see Note 4) $ 83,237 $ 82,411 Undisbursed lines of credit 49,525 51,420 Commitments to extend credit 17,665 19,673 The Company maintains a separate reserve for losses related to unfunded loan commitments. Management estimates the amount of probable losses related to unfunded loan commitments by applying the loss factors used in the allowance for loan loss methodology to an estimate of the expected amount of funding and applies this adjusted factor to the unused portion of unfunded loan commitments. The reserve for unfunded loan commitments totaled $207,000 and $214,000 at September 30, 2018 and 2017 , respectively. These amounts are included in other liabilities and accrued expenses in the accompanying consolidated balance sheets. Increases (decreases) in the reserve for unfunded loan commitments are recorded in non-interest expense in the accompanying consolidated statements of income. The Bank has an employee severance compensation plan which expires in 2027 and which provides severance pay benefits to eligible employees in the event of a change in control of Timberland Bancorp or the Bank (as defined in the plan). In general, all employees with two or more years of service will be eligible to participate in the plan. Under the plan, in the event of a change in control of Timberland Bancorp or the Bank, eligible employees who are terminated or who terminate employment (but only upon the occurrence of events specified in the plan) within 12 months of the effective date of a change in control would be entitled to a payment based on years of service or officer rank with the Bank. The maximum payment for any eligible employee would be equal to 18 months of the employee’s current compensation. The Company has employment agreements with the Chief Executive Officer and the Chief Financial Officer which provide for a severance payment and other benefits if the officers are involuntarily terminated following a change in control of the Company or the Bank. The maximum value of the severance benefits under the employment agreements is 2.99 times the officer's average annual compensation during the five -year period prior to the effective date of the change in control. Because of the nature of its activities, the Company is subject to various pending and threatened legal actions which arise in the ordinary course of business. In the opinion of management, liabilities arising from these claims, if any, will not have a material effect on the consolidated financial position of the Company. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Sep. 30, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Matters | Regulatory Matters The Bank, as a state-chartered, federally insured savings bank, is subject to the capital requirements established by the FDIC. Under the FDIC's capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting and other factors. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by bank regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. The minimum requirements are a common equity Tier 1 ("CET1") capital ratio of 4.5% , a Tier 1 capital ratio of 6.0% , a total capital ratio of 8.0% and a leverage ratio of 4.0% . In addition to the minimum regulatory capital ratios, the Bank must maintain a capital conservation buffer consisting of additional CET1 capital above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. This capital conservation buffer requirement was phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase each year to an amount equal to more than 2.5% of risk-weighted assets when fully implemented in January 2019. At September 30, 2018, the conservation buffer was an amount more than 1.875% . At September 30, 2018 and 2017 the Bank exceeded all regulatory capital requirements. The Bank was categorized as "well capitalized" at September 30, 2018 and 2017 under the regulations of the FDIC. The following tables compare the Bank’s actual capital amounts at September 30, 2018 and 2017 to its minimum regulatory capital requirements and "Well Capitalized" regulatory capital at those dates (dollars in thousands): September 30, 2018 Actual Regulatory Minimum To Be "Adequately Capitalized" Regulatory MinimumTo Be "Well Capitalized" Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Leverage Capital Ratio: Tier 1 capital $ 117,336 11.7 % $ 40,024 4.0 % $ 50,031 5.0 % Risk-based Capital Ratios: Common equity Tier 1 capital 117,336 16.7 31,539 4.5 45,557 6.5 Tier 1 capital 117,336 16.7 42,052 6.0 56,070 8.0 Total capital 126,109 18.0 56,070 8.0 70,087 10.0 September 30, 2017 Actual Regulatory Minimum To Be "Adequately Capitalized" Regulatory Minimum To Be "Well Capitalized" Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Leverage Capital Ratio: Tier 1 capital $ 104,102 11.2 % $ 37,116 4.0 % $ 46,395 5.0 % Risk-based Capital Ratios: Common equity Tier 1 capital 104,102 15.9 29,547 4.5 42,678 6.5 Tier 1 capital 104,102 15.9 39,395 6.0 52,527 8.0 Total capital 112,329 17.1 52,527 8.0 65,659 10.0 Timberland Bancorp is a bank holding company registered with the Federal Reserve. Bank holding companies are subject to capital adequacy requirements of the Federal Reserve under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve. For a bank holding company with less than $3.0 billion in assets, the capital guidelines apply on a bank only basis, and the Federal Reserve expects the holding company's subsidiary bank to be well capitalized under the prompt corrective action regulations. If Timberland Bancorp were subject to regulatory guidelines for bank holding companies with $3.0 billion or more in assets at September 30, 2018 , Timberland Bancorp would have exceeded all regulatory requirements. The following table presents the regulatory capital ratios for Timberland Bancorp at September 30, 2018 and 2017 (dollars in thousands): 2018 2017 Amount Ratio Amount Ratio Leverage Capital Ratio: Tier 1 capital $ 120,175 12.0 % $ 107,145 11.5 % Risk-based Capital Ratios: Common equity Tier 1 capital 120,175 17.1 107,145 16.3 Tier 1 capital 120,175 17.1 107,145 16.3 Total capital 128,955 18.4 115,376 17.6 |
Condensed Financial Information
Condensed Financial Information - Parent Company Only | 12 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information - Parent Company Only | Condensed Financial Information - Parent Company Only Condensed Balance Sheets - September 30, 2018 and 2017 (dollars in thousands) 2018 2017 Assets Cash and cash equivalents: Cash and due from financial institutions $ 306 $ 485 Interest-bearing deposits in banks 2,588 1,797 Total cash and cash equivalents 2,894 2,282 Loan receivable from ESOP 285 821 Investment in Bank 121,818 107,957 Other assets 15 14 Total assets $ 125,012 $ 111,074 Liabilities and shareholders’ equity Accrued expenses $ 355 $ 74 Shareholders’ equity 124,657 111,000 Total liabilities and shareholders’ equity $ 125,012 $ 111,074 Condensed Statements of Income - Years Ended September 30, 2018 , 2017 and 2016 (dollars in thousands) 2018 2017 2016 Operating income Interest on deposits in banks $ 37 $ 27 $ 3 Interest on loan receivable from ESOP 53 96 136 Dividends from Bank 4,429 1,390 3,039 Total operating income 4,519 1,513 3,178 Operating expenses 591 467 430 Income before income taxes and equity in undistributed income of Bank 3,928 1,046 2,748 Benefit for income taxes (198 ) (385 ) (183 ) Income before undistributed income of Bank 4,126 1,431 2,931 Equity in undistributed income of Bank 12,595 12,736 7,223 Net income $ 16,721 $ 14,167 $ 10,154 Condensed Statements of Cash Flows - Years Ended September 30, 2018 , 2017 and 2016 (dollars in thousands) 2018 2017 2016 Cash flows from operating activities Net income $ 16,721 $ 14,167 $ 10,154 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of Bank (12,595 ) (12,736 ) (7,223 ) Earned ESOP shares 882 605 404 Stock option compensation expense 172 156 190 Other, net 280 33 (65 ) Net cash provided by operating activities 5,460 2,225 3,460 Cash flows from investing activities Investment in Bank (1,271 ) (930 ) (616 ) Principal repayments on loan receivable from ESOP 536 493 452 Net cash used in investing activities (735 ) (437 ) (164 ) Cash flows from financing activities Proceeds from exercise of stock options 318 332 159 Proceeds from exercise of stock warrant — 2,496 — Repurchase of common stock — — (820 ) Payment of dividends (4,431 ) (3,641 ) (2,578 ) Net cash used in financing activities (4,113 ) (813 ) (3,239 ) Net increase in cash and cash equivalents 612 975 57 Cash and cash equivalents Beginning of period 2,282 1,307 1,250 End of period $ 2,894 $ 2,282 $ 1,307 |
Net Income Per Common Share
Net Income Per Common Share | 12 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share Information regarding the calculation of basic and diluted net income per common share for the years ended September 30, 2018 , 2017 and 2016 is as follows (dollars in thousands, except per share amounts): 2018 2017 2016 Basic net income per common share computation Numerator - net income to common shareholders $ 16,721 $ 14,167 $ 10,154 Denominator - weighted average common shares outstanding 7,334,577 7,136,690 6,842,614 Basic net income per common share $ 2.28 $ 1.99 $ 1.48 Diluted net income per common share computation Numerator - net income to common shareholders $ 16,721 $ 14,167 $ 10,154 Denominator - weighted average common shares outstanding 7,334,577 7,136,690 6,842,614 Effect of dilutive stock options (1) 191,767 163,773 78,910 Effect of dilutive stock warrant (2) — 79,590 183,825 Weighted average common shares outstanding-assuming dilution 7,526,344 7,380,053 7,105,349 Diluted net income per common share $ 2.22 $ 1.92 $ 1.43 ___________________ (1) For the years ended September 30, 2018 , 2017 and 2016 , average options to purchase 29,581 , 1,117 and 42,801 shares of common stock, respectively, were outstanding but not included in the computation of diluted net income per common share because their effect would have been anti-dilutive. (2) Represented a warrant to purchase 370,899 shares of the Company's common stock at an exercise price of $6.73 per share (subject to anti-dilution adjustments) at any time through December 23, 2018 (the "Warrant"). The Warrant was granted on December 23, 2008 to the U.S. Treasury Department ("Treasury") as part of the Company's participation in the Treasury's Troubled Asset Relief Program. On June 12, 2013, the Treasury sold the Warrant to private investors. On January 31, 2017, the Warrant was exercised and 370,899 shares of the Company's common stock were issued in exchange for $2,496,000 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) ("AOCI") by component during the years ended September 30, 2018, 2017 and 2016 are as follows (dollars in thousands): Changes in fair value of available for sale securities [1] Other-than-temporary impairment on held to maturity securities [1] Total [1] 2018 Balance of AOCI at the beginning of period $ (19 ) $ (105 ) $ (124 ) Net change (39 ) 34 (5 ) Balance of AOCI at the end of period $ (58 ) $ (71 ) $ (129 ) 2017 Balance of AOCI at the beginning of period $ 4 $ (179 ) $ (175 ) Net change (23 ) 74 51 Balance of AOCI at the end of period $ (19 ) $ (105 ) $ (124 ) 2016 Balance of AOCI at the beginning of period $ 3 $ (316 ) $ (313 ) Net change 1 137 138 Balance of AOCI at the end of period $ 4 $ (179 ) $ (175 ) ___________________ [1] All amounts are net of income taxes. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements GAAP defines fair value and establishes a framework for measuring fair value. Fair value is the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The three levels for categorizing assets and liabilities under GAAP's fair value measurement requirements are as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2: Significant observable inputs other than quoted prices included within Level 1, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions market participants would use in pricing an asset or liability based on the best information available in the circumstances. The Company's assets measured at fair value on a recurring basis consist of investment securities available for sale. The estimated fair value of MBS are based upon market prices of similar securities or observable inputs (Level 2). The estimated fair value of mutual funds are based upon quoted market prices (Level 1). The Company had no liabilities measured at fair value on a recurring basis at September 30, 2018 and 2017. The Company's assets measured at estimated fair value on a recurring basis at September 30, 2018 and 2017 are as follows (dollars in thousands): Estimated Fair Value September 30, 2018 Level 1 Level 2 Level 3 Total Available for sale investment securities MBS: U.S. government agencies $ — $ 237 $ — $ 237 Mutual funds 917 — — 917 Total $ 917 $ 237 $ — $ 1,154 September 30, 2017 Available for sale investment securities MBS: U.S. government agencies $ — $ 289 $ — $ 289 Mutual funds 952 — — 952 Total $ 952 $ 289 $ — $ 1,241 There were no transfers among Level 1, Level 2 and Level 3 during the years ended September 30, 2018 and 2017. The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. The Company uses the following methods and significant assumptions to estimate fair value of such assets on a non-recurring basis: Impaired Loans : The estimated fair value of impaired loans is calculated using the collateral value method or on a discounted cash flow basis. The specific reserve for collateral dependent impaired loans is based on the estimated fair value of the collateral less estimated costs to sell, if applicable. In some cases, adjustments are made to the appraised values due to various factors including age of the appraisal, age of comparables included in the appraisal and known changes in the market and in the collateral. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Investment Securities Held to Maturity: The estimated fair value of investment securities held to maturity is based upon the assumptions market participants would use in pricing the investment security. Such assumptions include quoted market prices (Level 1), market prices of similar securities or observable inputs (Level 2) and unobservable inputs such as dealer quotes, discounted cash flows or similar techniques (Level 3). OREO and Other Repossessed Assets, net: OREO and other repossessed assets are recorded at estimated fair value less estimated costs to sell. Estimated fair value is generally determined by management based on a number of factors, including third-party appraisals of estimated fair value in an orderly sale. Estimated costs to sell are based on standard market factors. The valuation of OREO and other repossessed assets is subject to significant external and internal judgment (Level 3). The following table summarizes the balances of assets measured at estimated fair value on a non-recurring basis at September 30, 2018 (dollars in thousands): Estimated Fair Value Impaired loans: Level 1 Level 2 Level 3 Mortgage loans: Land $ — $ — $ 119 Commercial business loans — — 107 Total impaired loans — — 226 Investment securities – held to maturity: MBS - Private label residential — 3 — OREO and other repossessed assets — — 1,913 Total $ — $ 3 $ 2,139 The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis as of September 30, 2018 (dollars in thousands): Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range Impaired loans $ 226 Market approach Appraised value less selling costs NA OREO and other repossessed assets 1,913 Market approach Lower of appraised value or listing price less selling costs NA The following table summarizes the balances of assets measured at estimated fair value on a non-recurring basis at September 30, 2017 (dollars in thousands): Estimated Fair Value Impaired loans: Level 1 Level 2 Level 3 Mortgage loans: Commercial $ — $ — $ 1,880 Land — — 697 Consumer loans: Home equity and second mortgage — — 109 Total impaired loans — — 2,686 Investment securities – held to maturity: MBS - Private label residential — 125 — OREO and other repossessed assets — — 3,301 Total $ — $ 125 $ 5,987 The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis as of September 30, 2017 (dollars in thousands): Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range Impaired loans $ 2,686 Market approach Appraised value less selling costs NA OREO and other repossessed assets 3,301 Market approach Lower of appraised value or listing price less selling costs NA GAAP requires disclosure of estimated fair values for financial instruments. Such estimates are subjective in nature, and significant judgment is required regarding the risk characteristics of various financial instruments at a discrete point in time. Therefore, such estimates could vary significantly if assumptions regarding uncertain factors were to change. In addition, as the Company normally intends to hold the majority of its financial instruments until maturity, it does not expect to realize many of the estimated amounts disclosed. The disclosures also do not include estimated fair value amounts for certain items which are not defined as financial instruments but which may have significant value. The Company does not believe that it would be practicable to estimate a representational fair value for these types of items as of September 30, 2018 and 2017 . Because GAAP excludes certain items from fair value disclosure requirements, any aggregation of the fair value amounts presented would not represent the underlying value of the Company. The following methods and assumptions were used by the Company in estimating fair value of its other financial instruments: Cash and Cash Equivalents and CDs Held for Investment: The estimated fair value of financial instruments that are short-term or re-price frequently and that have little or no risk are considered to have an estimated fair value equal to the recorded value. Investment Securities: See descriptions above. FHLB Stock: No ready market exists for this stock, and it has no quoted market value. However, redemption of this stock has historically been at par value. Accordingly, par value is deemed to be a reasonable estimate of fair value. Other Investments: The Bank invests in the Solomon Hess SBA Loan Fund LLC. Shares in the fund are not publicly traded and therefore have no readily determinable fair market value, therefore they are recorded on the balance sheet at cost. An investor can have its investment in the fund redeemed for the balance of its capital account at any quarter end with 60 days notice to the fund. Loans Held for Sale: The estimated fair value is based on quoted market prices (for one- to four-family loans) and the guaranteed value of SBA loans (made to small businesses under SBA's 7(a) loan programs). Quoted market prices are obtained from Freddie Mac and the FHLB. Loans Receivable, Net: The fair value of non-impaired loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers for the same remaining maturities. Prepayments are based on the historical experience of the Bank. Fair values for impaired loans are estimated using the methods described above. Accrued Interest: The recorded amount of accrued interest approximates the estimated fair value. Deposits : The estimated fair value of deposits with no stated maturity date is deemed to be the amount payable on demand. The estimated fair value of fixed maturity certificates of deposit is computed by discounting future cash flows using the rates currently offered by the Bank for deposits of similar remaining maturities. Off-Balance-Sheet Instruments: Since the majority of the Company’s off-balance-sheet instruments consist of variable-rate commitments, the Company has determined that they do not have a distinguishable estimated fair value. The recorded amounts and estimated fair values of financial instruments were as follows as of September 30, 2018 (dollars in thousands): Fair Value Measurements Using: Recorded Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 148,864 $ 148,864 $ 148,864 $ — $ — CDs held for investment 63,290 63,290 63,290 — — Investment securities 13,964 14,418 8,812 5,606 — FHLB stock 1,190 1,190 1,190 — — Other investments 3,000 3,000 3,000 — — Loans held for sale 1,785 1,814 1,814 — — Loans receivable, net 725,391 711,071 — — 711,071 Accrued interest receivable 2,877 2,877 2,877 — — Financial Liabilities Deposits: Non-interest-bearing demand 233,258 233,258 233,258 — — Interest-bearing 656,248 655,271 514,440 — 140,831 Total deposits 889,506 888,529 747,698 — 140,831 Accrued interest payable 225 225 225 — — The recorded amounts and estimated fair values of financial instruments were as follows as of September 30, 2017 (dollars in thousands): Fair Value Measurements Using: Recorded Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 148,188 $ 148,188 $ 148,188 $ — $ — CDs held for investment 43,034 43,034 43,034 — — Investment securities 8,380 8,985 3,954 5,031 — FHLB stock 1,107 1,107 1,107 — — Other investments 3,000 3,000 3,000 — — Loans held for sale 3,599 3,619 3,619 — — Loans receivable, net 690,364 688,332 — — 688,332 Accrued interest receivable 2,520 2,520 2,520 — — Financial Liabilities Deposits: Non-interest-bearing demand 205,952 205,952 205,952 — — Interest-bearing 631,946 632,629 492,305 — 140,324 Total deposits 837,898 838,581 698,257 — 140,324 Accrued interest payable 161 161 161 — — The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the estimated fair value of the Company’s financial instruments will change when interest rate levels change, and that change may either be favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to appropriately manage interest rate risk. However, borrowers with fixed interest rate obligations are less likely to prepay in a rising interest rate environment and more likely to prepay in a falling interest rate environment. Conversely, depositors who are receiving fixed interest rates are more likely to withdraw funds before maturity in a rising interest rate environment and less likely to do so in a falling interest rate environment. Management monitors interest rates and maturities of assets and liabilities, and attempts to manage interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following selected financial data is presented for the quarters ended (dollars in thousands, except per share amounts): September 30, June 30, March 31, December 31, Interest and dividend income $ 11,051 $ 10,457 $ 10,290 $ 10,035 Interest expense (781 ) (730 ) (666 ) (601 ) Net interest income 10,270 9,727 9,624 9,434 Non-interest income 3,180 3,145 3,082 3,137 Non-interest expense (1) (7,658 ) (7,122 ) (7,221 ) (7,176 ) Income before income taxes 5,792 5,750 5,485 5,395 Provision for income taxes 1,370 1,334 1,216 1,781 Net income $ 4,422 $ 4,416 $ 4,269 $ 3,614 Net income per common share Basic (2) $ 0.60 $ 0.60 $ 0.58 $ 0.49 Diluted (2) $ 0.59 $ 0.59 $ 0.57 $ 0.48 __________________________________________ (1) During the quarters ended December 31, 2017, March 31, 2018, June 30, 2018 and September 30, 2018 the Company incurred expenses related to the acquisition of South Sound Bank of $9 , $80 , $181 , and $346 , respectively. (2) The net income per common share amounts for the quarters do not add to the total for the fiscal year due to rounding. September 30, June 30, March 31, December 31, Interest and dividend income $ 9,711 $ 10,165 $ 9,299 $ 9,163 Interest expense (582 ) (918 ) (847 ) (850 ) Net interest income 9,129 9,247 8,452 8,313 Recapture of loan losses (1) — (1,000 ) (250 ) — Non-interest income 3,145 3,156 2,851 3,216 Non-interest expense (6,911 ) (6,938 ) (6,857 ) (6,810 ) Income before income taxes 5,363 6,465 4,696 4,719 Provision for income taxes 1,748 2,188 1,568 1,572 Net income $ 3,615 $ 4,277 $ 3,128 $ 3,147 Net income per common share Basic $ 0.50 $ 0.59 $ 0.44 $ 0.46 Diluted (2) $ 0.48 $ 0.58 $ 0.42 $ 0.43 __________________________________________ (1) During the quarters ended March 31, 2017 and June 30, 2017 the Company recorded recaptures of loan losses of $250 and $1,000 , respectively, primarily as a result of significant recoveries on loans which had previously been charged off in prior years and improvements in other credit quality metrics. (2) The net income per common share amounts for the quarters do not add to the total for the fiscal year due to rounding. |
Subsequent Event - Business Com
Subsequent Event - Business Combination Subsequent Event - Business Combination | 12 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event - Business Combination | Subsequent Event - Business Combination On October 1, 2018 , the Company completed the acquisition of South Sound Bank, a Washington-state chartered bank, headquartered in Olympia, Washington ("South Sound Merger"). The Company acquired 100% of the outstanding common stock of South Sound Bank, and South Sound Bank was merged into the Bank and the Company. Pursuant to the terms of the merger agreement, South Sound Bank shareholders received 0.746 of a share of the Company's common stock and $5.68825 in cash per share of South Sound Bank common stock. The Company issued 904,826 shares of its common stock (valued at $28,267,000 based on the Company's closing stock price on September 30, 2018 of $31.24 per share) and paid $6,903,000 in cash in the transaction for total consideration paid of $35,170,000 . At September 30, 2018, South Sound Bank had total assets of $178,333,000 , a loan portfolio of $121,347,000 , and deposits of $151,427,000 with two branches in Thurston County. The primary reason for the acquisition was to expand the Company's presence along Washington State's economically important I-5 corridor. The South Sound Merger constitutes a business acquisition as defined by GAAP, which establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired and the liabilities assumed. Accordingly, the estimated fair values of the acquired assets, including the identifiable intangible assets, and the assumed liabilities in the acquisition will be measured and recorded as of the acquisition date. Costs incurred by the Company for the South Sound Merger totaled $616,000 during the year ended September 30, 2018 and are included in professional fees in the accompanying consolidated statement of income. The operating results of the Company for the year ended September 30, 2018 do not include the operating results produced by the acquired assets and assumed liabilities from South Sound Bank as the South Sound Merger did not close until October 1, 2018. Preliminary fair values for assets acquired and liabilities assumed are not reported herein as the Company is still in the process of completing the initial accounting for the acquisition. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of Timberland Bancorp, Inc. (“Timberland Bancorp”); its wholly owned subsidiary, Timberland Bank (the “Bank”); and the Bank’s wholly owned subsidiary, Timberland Service Corp. (collectively, the "Company”). All significant intercompany transactions and balances have been eliminated in consolidation. |
Nature of Operations | Timberland Bancorp is a bank holding company which operates primarily through its subsidiary, the Bank. The Bank was established in 1915 and, through its 22 branches located in Grays Harbor, Pierce, Thurston, Kitsap, King and Lewis counties in Washington State, attracts deposits from the general public, and uses those funds, along with other borrowings, primarily to provide residential real estate, construction, commercial real estate, commercial business and consumer loans to borrowers primarily in western Washington. |
Consolidated Financial Statement Presentation | The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S.") (“GAAP”) and prevailing practices within the banking industry. |
Use of Estimates | The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities, as of the date of the consolidated balance sheets, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the determination of any OTTI in the fair value of investment securities, the valuation of MSRs, the valuation of OREO and the valuation of goodwill for potential impairment. |
Reclassification Policy | Certain prior year amounts have been reclassified to conform to the 2018 fiscal year presentation with no change to previously reported net income or shareholders’ equity. |
Segment Reporting | The Company has one reportable operating segment which is defined as community banking in western Washington under the operating name “Timberland Bank.” |
Cash and Cash Equivalents and Cash Flows | The Company considers amounts included in the consolidated balance sheets’ captions “Cash and due from financial institutions” and “Interest-bearing deposits in banks,” all of which mature within ninety days, to be cash equivalents for purposes of reporting cash flows. |
CDs Held for Investment | CDs held for investment include amounts invested with other FDIC-insured financial institutions for a stated interest rate and with a fixed maturity date. Such CDs generally have maturities of 12 to 24 months from the date of purchase by the Company. Early withdrawal penalties may apply; however, the Company intends to hold these CDs to maturity. The Company generally limits its purchases of CDs to a maximum of $250,000 (the FDIC insurance coverage limit) with any single financial institution. |
Investment Securities | Investment securities are classified upon acquisition as either held to maturity or available for sale. Investment securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and reported at amortized cost. Investment securities classified as available for sale are reported at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss), net of income tax effects. Premiums and discounts are amortized to interest income using the interest method over the contractual lives of the securities. Gains and losses on sales of investment securities are recognized on the trade date and determined using the specific identification method. In estimating whether there are any OTTI losses, management considers (1) the length of time and the extent to which the fair value has been less than amortized cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates and (4) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value. Declines in the fair value of individual investment securities available for sale that are deemed to be other than temporary are recognized in earnings when identified. The fair value of the investment security then becomes the new cost basis. For individual investment securities that are held to maturity which the Company does not intend to sell, and it is not more likely than not that the Company will be required to sell before recovery of its amortized cost basis, the other than temporary decline in the fair value of the investment security related to: (1) credit loss is recognized in earnings and (2) market or other factors is recognized in other comprehensive income (loss). Credit loss is recorded if the present value of expected future cash flows is less than the amortized cost. For individual investment securities which the Company intends to sell or more likely than not will not recover all of its amortized cost, the OTTI is recognized in earnings equal to the entire difference between the investment security’s cost basis and its fair value at the consolidated balance sheet date. For individual investment securities for which credit loss has been recognized in earnings, interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized. Interest received after accruals have been suspended is recognized on a cash basis. |
FHLB Stock | The Bank, as a member of the FHLB, is required to maintain an investment in capital stock of the FHLB in an amount equal to 0.12% of the Bank's total assets plus 4.00% of any borrowings from the FHLB. No ready market exists for this stock, and it has no quoted market value. However, redemption of FHLB stock has historically been at par value. The Company's investment in FHLB stock is carried at cost, which approximates fair value. The Company evaluates its FHLB stock for impairment as needed. The Company's determination of whether this investment is impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as (1) the significance of any decline in net assets of the FHLB as compared with the capital stock amount and the length of time any decline has persisted; (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; (3) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB; and (4) the liquidity position of the FHLB. Based on its evaluation, the Company determined that there was no impairment of FHLB stock at September 30, 2018 and 2017. |
Loans Held for Sale | Mortgage loans and commercial business loans originated and intended for sale in the secondary market are stated in the aggregate at the lower of cost or estimated fair value. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Gains or losses on sales of loans are recognized at the time of sale. The gain or loss is the difference between the net sales proceeds and the recorded value of the loans, including any remaining unamortized deferred loan origination fees. |
Loans Receivable | Loans are stated at the amount of unpaid principal, reduced by the undisbursed portion of construction loans in process, net deferred loan origination fees and the allowance for loan losses. |
Interest on Loans, Non-accrual Loans and Loan Fees | Interest on loans is accrued daily based on the principal amount outstanding. Generally, the accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to make payments as they become due or when they are past due 90 days as to either principal or interest (based on contractual terms), unless the loan is well secured and in the process of collection. In determining whether a borrower may be able to make payments as they become due, management considers circumstances such as the financial strength of the borrower, the estimated collateral value, reasons for the delays in payments, payment record, the amounts past due and the number of days past due. All interest accrued but not collected for loans that are placed on non-accrual status or charged off is reversed against interest income. Subsequent collections on a cash basis are applied proportionately to past due principal and interest, unless collectability of principal is in doubt, in which case all payments are applied to principal. Loans are returned to accrual status when the loan is deemed current, and the collectability of principal and interest is no longer doubtful, or, in the case of one- to four-family loans, when the loan is less than 90 days delinquent. The categories of non-accrual loans and impaired loans overlap, although they are not identical. The Company charges fees for originating loans. These fees, net of certain loan origination costs, are deferred and amortized to income on the level-yield basis over the loan term. If the loan is repaid prior to maturity, the remaining unamortized deferred loan origination fee is recognized in income at the time of repayment. |
Troubled Debt Restructured Loans | A troubled debt restructured loan ("TDR") is a loan for which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. Examples of such concessions include, but are not limited to: a reduction in the stated interest rate; an extension of the maturity at an interest rate below current market rates; a reduction in the face amount of the debt; a reduction in the accrued interest; or re-amortizations, extensions, deferrals and renewals. TDRs are considered impaired and are individually evaluated for impairment. TDRs are classified as non-accrual (and considered to be non-performing) unless they have been performing in accordance with modified terms for a period of at least six months. |
Allowance for Loan Losses | The allowance for loan losses is maintained at a level sufficient to provide for probable losses inherent in the loan portfolio. The allowance is provided based upon management's comprehensive analysis of the pertinent factors underlying the quality of the loan portfolio. These factors include changes in the amount and composition of the loan portfolio, delinquency levels, actual loan loss experience, current economic conditions, and a detailed analysis of individual loans for which full collectability may not be assured. The detailed analysis includes methods to estimate the fair value of loan collateral and the existence of potential alternative sources of repayment. The allowance consists of specific and general components. The specific component relates to loans that are deemed impaired. For such loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value less selling costs (if applicable), or observable market price of the impaired loan is lower than the recorded value of that loan. The general component covers non-impaired loans and is based on historical loss experience adjusted for qualitative factors. The Company's historical loss experience is determined by evaluating the average net charge-offs over the most recent economic cycle, but not to exceed six years. Qualitative factors are determined by loan type and allow management to adjust reserve levels to reflect the current general economic environment and portfolio performance trends including recent charge-off trends. Allowances are provided based on management’s continuing evaluation of the pertinent factors underlying the quality of the loan portfolio, including changes in the size and composition of the loan portfolio, actual loan loss experience, current economic conditions, collateral values, geographic concentrations, seasoning of the loan portfolio, specific industry conditions, the duration of the current business cycle, and regulatory requirements and expectations. The appropriateness of the allowance for loan losses is estimated based upon these factors and trends identified by management at the time the consolidated financial statements are prepared. A loan is considered impaired when it is probable that the Company will be unable to collect all amounts (principal and interest) when due according to the contractual terms of the loan agreement. Smaller balance homogeneous loans, such as residential mortgage loans and consumer loans, may be collectively evaluated for impairment. When a loan has been identified as being impaired, the amount of the impairment is measured by using discounted cash flows, except when, as an alternative, the current estimated fair value of the collateral (reduced by estimated costs to sell, if applicable) or observable market price is used. The valuation of real estate collateral is subjective in nature and may be adjusted in future periods because of changes in economic conditions. Management considers third-party appraisals, as well as independent fair market value assessments from realtors or persons involved in selling real estate, in determining the estimated fair value of particular properties. In addition, as certain of these third-party appraisals and independent fair market value assessments are only updated periodically, changes in the values of specific properties may have occurred subsequent to the most recent appraisals. Accordingly, the amounts of any such potential changes and any related adjustments are generally recorded at the time such information is received. When the estimated net realizable value of the impaired loan is less than the recorded investment in the loan (including accrued interest and net deferred loan origination fees or costs), impairment is recognized by creating or adjusting an allocation of the allowance for loan losses and uncollected accrued interest is reversed against interest income. If ultimate collection of principal is in doubt, all cash receipts on impaired loans are applied to reduce the principal balance. A provision for (recapture of) loan losses is charged (credited) to operations and is added to (deducted from) the allowance for loan losses based on a quarterly comprehensive analysis of the loan portfolio. The allowance for loan losses is allocated to certain loan categories based on the relative risk characteristics, asset classifications and actual loss experience of the loan portfolio. While management has allocated the allowance for loan losses to various loan portfolio segments, the allowance is general in nature and is available for the loan portfolio in its entirety. The ultimate recovery of all loans is susceptible to future market factors beyond the Company’s control. These factors may result in losses or recoveries differing significantly from those provided in the consolidated financial statements. If real estate values decline and as updated appraisals are received on collateral for impaired loans, the Company may need to increase the allowance for loan losses appropriately. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses, and may require the Company to make additions to the allowance based on their judgment about information available to them at the time of their examinations. |
Premises and Equipment | Premises and equipment are recorded at cost. Depreciation is computed using the straight-line method over the following estimated useful lives: buildings and improvements - five to 40 years and furniture and equipment - three to seven years. The cost of maintenance and repairs is charged to expense as incurred. Gains and losses on dispositions are reflected in earnings. |
Impairment of Long-Lived Assets | Long-lived assets, consisting of premises and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the recorded amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the recorded amount of an asset to undiscounted future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the recorded amount of the assets exceeds the discounted recovery amount or estimated fair value of the assets. No events or changes in circumstances have occurred during the years ended September 30, 2018 or 2017 that would cause management to evaluate the recoverability of the Company’s long-lived assets. |
OREO and Other Repossessed Assets | OREO and other repossessed assets consist of properties or assets acquired through or in lieu of foreclosure, and are recorded initially at the estimated fair value of the properties less estimated costs of disposal, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. When the property is acquired, any excess of the loan balance over the estimated net realizable value is charged to the allowance for loan losses. The valuation of real estate is subjective in nature and may be adjusted in future periods because of changes in economic conditions. Management considers third-party appraisals, as well as independent fair market value assessments from realtors or persons involved in selling real estate, in determining the estimated fair values of particular properties. In addition, as certain of these third-party appraisals and independent fair market value assessments are only updated periodically, changes in the values of specific properties may have occurred subsequent to the most recent appraisals. Accordingly, the amounts of any such potential changes and any related adjustments are generally recorded at the time such information is received. |
BOLI | BOLI policies are recorded at their cash surrender value less applicable cash surrender charges. Income from BOLI is recognized when earned. |
Goodwill | Goodwill is initially recorded when the purchase price paid in a business combination exceeds the estimated fair value of the net identified tangible and intangible assets acquired and liabilities assumed. Goodwill is presumed to have an indefinite useful life and is analyzed annually for impairment. The Company performs an annual review during the third quarter of each fiscal year, or more frequently if indicators of potential impairment exist, to determine if the recorded goodwill is impaired. For purposes of goodwill impairment testing, the services offered through the Bank and its subsidiary are managed as one strategic unit and represent the Company's only reporting unit. The annual goodwill impairment test begins with a qualitative assessment of whether it is "more likely than not" that the reporting unit's fair value is less than its carrying amount. If an entity concludes that it is not "more likely than not" that the fair value of a reporting unit is less than its carrying amount, it need not perform a two-step impairment test. If the Company's qualitative assessment concluded that it is "more likely than not" that the fair value of its reporting unit is less than its carrying amount, it must perform the two-step impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized, if any. The first step of the goodwill impairment test compares the estimated fair value of the reporting unit with its carrying amount, or the book value, including goodwill. If the estimated fair value of the reporting unit equals or exceeds its book value, goodwill is considered not impaired, and the second step of the impairment test is unnecessary. The second step, if necessary, measures the amount of goodwill impairment loss to be recognized. The reporting unit must determine fair value for all assets and liabilities, excluding goodwill. The net of the assigned fair value of assets and liabilities is then compared to the book value of the reporting unit, and any excess book value becomes the implied fair value of goodwill. If the carrying amount of the goodwill exceeds the newly calculated implied fair value of goodwill, an impairment loss is recognized in the amount required to write-down the goodwill to the implied fair value. Management's qualitative assessment takes into consideration macroeconomic conditions, industry and market considerations, cost or margin factors, financial performance and share price of the Company's common stock. Based on this assessment, the Company determined that it is not "more likely than not" that the Company's fair value is less than its carrying amount and therefore goodwill was determined not to be impaired at May 31, 2018. A significant amount of judgment is involved in determining if an indicator of goodwill impairment has occurred. Such indicators may include, among others: a significant decline in expected future cash flows; a sustained, significant decline in the Company's stock price and market capitalization; a significant adverse change in legal factors or in the business climate; adverse assessment or action by a regulator; and unanticipated competition. Any change in these indicators could have a significant negative impact on the Company's financial condition, impact the goodwill impairment analysis or cause the Company to perform a goodwill impairment analysis more frequently than once per year. As of September 30, 2018, management believes that there have been no events or changes in the circumstances since May 31, 2018 that would indicate a potential impairment of goodwill. No assurances can be given, however, that the Company will not record an impairment loss on goodwill in the future. |
MSRs | The Company holds rights to service (1) loans that it has originated and sold to the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and (2) the guaranteed portion of U.S. Small Business Administration ("SBA") loans sold in the secondary market. MSRs are capitalized at estimated fair value when acquired through the origination of loans that are subsequently sold with the servicing rights retained. MSRs are amortized to servicing income on loans sold approximately in proportion to and over the period of estimated net servicing income. The value of MSRs at the date of the sale of loans is estimated based on the discounted present value of expected future cash flows using key assumptions for servicing income and costs and expected prepayment rates on the underlying loans. The estimated fair value is periodically evaluated for impairment by comparing actual cash flows and estimated future cash flows from the servicing assets to those estimated at the time the servicing assets were originated. Fair values are estimated using expected future discounted cash flows based on current market rates of interest. For purposes of measuring impairment, the MSRs must be stratified by one or more predominant risk characteristics of the underlying loans. The Company stratifies its capitalized MSRs based on product type and term of the underlying loans. The amount of impairment recognized is the amount, if any, by which the amortized cost of the MSRs exceeds their fair value. Impairment, if deemed temporary, is recognized through a valuation allowance to the extent that fair value is less than the recorded amount. |
Transfers of Financial Assets | Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Income Taxes | The Company files a consolidated federal and various state income tax returns. The Bank provides for income taxes separately and remits to (receives from) Timberland Bancorp amounts currently due (receivable). Deferred income taxes result from temporary differences between the tax basis of assets and liabilities, and their reported amounts in the consolidated financial statements. These temporary differences will result in differences between income for tax purposes and income for financial reporting purposes in future years. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established to reduce the net recorded amount of deferred tax assets if it is determined to be more likely than not that all or some portion of the potential deferred tax asset will not be realized. With respect to accounting for uncertainty in incomes taxes, a tax provision is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely to be realized upon examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters as income tax expense. The Company is no longer subject to U.S. federal income tax examination by tax authorities for years ended on or before September 30, 2014. |
ESOP | The Bank sponsors a leveraged ESOP. The debt of the ESOP is payable to Timberland Bancorp, is recorded as other borrowed funds of the Bank, and is eliminated in the consolidated financial statements. The shares of the Company's common stock pledged as collateral for the ESOP's debt are reported as unearned shares issued to the ESOP in the consolidated financial statements. As shares are released from collateral, compensation expense is recorded equal to the average market price of the shares for the period, and the shares become available for net income per common share calculations. Dividends paid on unallocated shares reduce the Company’s cash contributions to the ESOP. |
Advertising | Costs for advertising and marketing are expensed as incurred. |
Stock-based Compensation | The Company measures compensation cost for all stock-based awards based on the grant-date fair value of the stock-based awards and recognizes compensation cost over the service period of stock-based awards. The fair value of stock options is determined using the Black-Scholes valuation model. Stock option forfeitures are accounted for as they occur. |
Net Income Per Common Share | Basic net income per common share is computed by dividing net income to common shareholders by the weighted average number of common shares outstanding during the period, without considering any dilutive items. Diluted net income per common share is computed by dividing net income to common shareholders by the weighted average number of common shares and common stock equivalents for items that are dilutive, net of shares assumed to be repurchased using the treasury stock method at the average share price for the Company's common stock during the period. Common stock equivalents arise from the assumed conversion of outstanding stock options and outstanding warrants to purchase common stock. Shares owned by the Bank’s ESOP that have not been allocated are not considered to be outstanding for the purpose of computing basic and diluted net income per common share. |
Related Party Transactions | The Chairman of the Board of the Bank and Timberland Bancorp is a member of the law firm that provides general counsel to the Company. |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers, which created FASB Accounting Standards Codification ("ASC") Topic 606 ("ASC 606"). The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASC 606 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted ASC 606 on October 1, 2018. The Company's primary source of revenue is interest income, which is recognized when earned and is excluded from the scope of ASC 606, and non-interest income. The adoption of ASC 606 will require additional disclosures regarding insignificant components of non-interest income, but will not have a material impact on the Company's future consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU No. 2016-01 generally requires equity investments - except those accounted for under the equity method of accounting or those that result in consolidation of the investee - to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU No. 2016-01 is intended to simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. ASU No. 2016-01 also eliminates certain disclosures related to the fair value of financial instruments and requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. ASU No. 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted this ASU on October 1, 2018. The adoption of ASU No. 2016-01 is not expected to have a material impact on the Company's future consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . This ASU is intended to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. The principal change required by this ASU relates to lessee accounting, and is that for operating leases, a lessee is required to (1) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position, (2) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis, and (3) classify all cash payments within operating activities in the statement of cash flows. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. This ASU also changes disclosure requirements related to leasing activities and requires certain qualitative disclosures along with specific quantitative disclosures. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements . This ASU amended the new leases standard to give entities another option for transition and to provide lessors with a practical expedient. The transition option allows entities to not apply the new leases standard in the comparative periods they present in their financial statements in the year of adoption. The practical expedient provides lessors with an option to not separate non-lease components from the associated lease components when certain criteria are met and requires them to account for the combined component in accordance with the ASC 606 if the associated non-lease components are the predominant components. The amendments have the same effective date as ASU No. 2016-02. The amendments in ASU No. 2016-02 are effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018. Early application of the amendments in this ASU is permitted. The effect of adoption of this ASU will depend on the nature and terms of the Company's leases at the time of adoption. Once adopted, the Company expects to report higher assets and liabilities as a result of including right-of-use assets and lease liabilities related to certain banking offices and certain equipment under non-cancelable operating lease agreements; however, based on current leases the adoption of ASU No. 2016-02 is not expected to have a material impact on the Company's future consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses . This ASU replaces the existing incurred losses methodology with a current expected losses methodology with respect to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held to maturity investment securities and off-balance sheet commitments. In addition, this ASU requires credit losses relating to available for sale debt securities to be recorded through an allowance for credit losses rather than as a reduction of the carrying amount. ASU No. 2016-13 also changes the accounting for purchased credit-impaired debt securities and loans. ASU No. 2016-13 retains many of the current disclosure requirements in GAAP and expands certain disclosure requirements. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Upon adoption, the Company expects a change in the processes and procedures to calculate the allowance for loan losses, including changes in the assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. In addition, the current policy for other-than-temporary impairment on investment securities available for sale will be replaced with an allowance approach. The Company is reviewing the requirements of ASU No. 2016-13 and expects to begin developing and implementing processes and procedures to ensure it is fully compliant with the amendments at the adoption date. At this time, the Company anticipates the allowance for loan losses will increase as a result of the implementation of this ASU; however, until its evaluation is complete, the magnitude of the increase will be unknown. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. This ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value of its assets and liabilities (including unrecognized assets and liabilities) at the impairment testing date following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Under ASU No. 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU No. 2017-04 will be effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early application of this ASU is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU No. 2017-04 is not expected to have a material impact on the Company's future consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. This ASU shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. This ASU is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018. The adoption of ASU No. 2017-08 is not expected to have a material impact on the Company's future consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU was issued to provide clarity as to when to apply modification accounting when there is a change in the terms or conditions of a share-based payment award. According to the ASU, an entity should account for the effects of a modification unless the fair value, vesting conditions, and balance sheet classification of the award are the same after the modification as compared to the original award prior to modification. ASU No. 2017-09 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The Company adopted this ASU on October 1, 2018. The adoption of ASU No. 2017-09 is not expected to have a material impact on the Company's future consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Marketable Securities | Held to maturity and available for sale investment securities were as follows as of September 30, 2018 and 2017 (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2018 Held to Maturity Mortgage-backed securities ("MBS"): U.S. government agencies $ 1,385 $ 8 $ (21 ) $ 1,372 Private label residential 460 552 (2 ) 1,010 U.S. Treasury and U.S. government agency securities 10,965 — (83 ) 10,882 Total $ 12,810 $ 560 $ (106 ) $ 13,264 Available for Sale MBS: U.S. government agencies $ 231 $ 7 $ (1 ) $ 237 Mutual funds 1,000 — (83 ) 917 Total $ 1,231 $ 7 $ (84 ) $ 1,154 September 30, 2017 Held to Maturity MBS: U.S. government agencies $ 532 $ 11 $ (1 ) $ 542 Private label residential 599 596 (2 ) 1,193 U.S. Treasury and U.S. government agency securities 6,008 10 (9 ) 6,009 Total $ 7,139 $ 617 $ (12 ) $ 7,744 Available for Sale MBS: U.S. government agencies $ 271 $ 18 $ — $ 289 Mutual funds 1,000 — (48 ) 952 Total $ 1,271 $ 18 $ (48 ) $ 1,241 |
Unrealized Gain (Loss) on Investments | Held to maturity and available for sale investment securities with unrealized losses were as follows as of September 30, 2018 (dollars in thousands): Less Than 12 Months 12 Months or Longer Total Estimated Fair Value Gross Unrealized Losses Qty Estimated Fair Value Gross Unrealized Losses Qty Estimated Fair Value Gross Unrealized Losses Held to Maturity MBS: U.S. government agencies $ 954 $ (20 ) 2 $ 64 $ (1 ) 5 $ 1,018 $ (21 ) Private label residential — — — 50 (2 ) 8 50 (2 ) U.S. Treasury and U.S. government agency securities 7,946 (22 ) 2 2,935 (61 ) 1 10,881 (83 ) Total $ 8,900 $ (42 ) 4 $ 3,049 $ (64 ) 14 $ 11,949 $ (106 ) Available for Sale MBS: U.S. government agencies $ 34 $ (1 ) 1 $ — $ — — $ 34 $ (1 ) Mutual funds — — — 917 (83 ) 1 917 (83 ) Total $ 34 $ (1 ) 1 $ 917 $ (83 ) 1 $ 951 $ (84 ) Held to maturity and available for sale investment securities with unrealized losses were as follows as of September 30, 2017 (dollars in thousands): Less Than 12 Months 12 Months or Longer Total Estimated Fair Value Gross Unrealized Losses Qty Estimated Fair Value Gross Unrealized Losses Qty Estimated Fair Value Gross Unrealized Losses Held to Maturity MBS: U.S. government agencies $ — $ — — $ 114 $ (1 ) 6 $ 114 $ (1 ) Private label residential — — — 85 (2 ) 10 85 (2 ) U.S. Treasury and U.S. government agency securities 2,984 (9 ) 1 — — — 2,984 (9 ) Total $ 2,984 $ (9 ) 1 $ 199 $ (3 ) 16 $ 3,183 $ (12 ) Available for Sale Mutual funds $ — $ — — $ 952 $ (48 ) 1 $ 952 $ (48 ) Total $ — $ — — $ 952 $ (48 ) 1 $ 952 $ (48 ) |
Schedule of Significant Inputs Utilized to Measure Estimate of Credit Loss Component on OTTI Securities | The following table presents a summary of the significant inputs utilized to measure management’s estimates of the credit loss component on OTTI securities as of September 30, 2018 , 2017 and 2016 : Range Weighted Minimum Maximum Average September 30, 2018 Constant prepayment rate 6.00 % 15.00 % 12.91 % Collateral default rate — % 10.42 % 5.03 % Loss severity rate — % 75.00 % 37.25 % September 30, 2017 Constant prepayment rate 6.00 % 15.00 % 10.40 % Collateral default rate 0.03 % 10.75 % 4.84 % Loss severity rate 1.00 % 62.00 % 41.75 % September 30, 2016 Constant prepayment rate 6.00 % 15.00 % 11.29 % Collateral default rate 0.07 % 14.45 % 5.47 % Loss severity rate 1.00 % 73.00 % 42.26 % |
Schedule of Other than Temporary Impairments | The following table presents the OTTI recoveries (losses) for the years ended September 30, 2018 , 2017 and 2016 (dollars in thousands): 2018 2017 2016 Held To Maturity Held To Maturity Held To Maturity Total recoveries (OTTI) $ 73 $ 38 $ (29 ) Adjustment for portion of OTTI transferred from other comprehensive income (before income taxes) (1) (5 ) (5 ) (139 ) Net recoveries (OTTI) recognized in earnings (2) $ 68 $ 33 $ (168 ) ________________________ (1) Represents OTTI related to all other factors. (2) Represents OTTI related to credit losses. |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | The following table presents a roll forward of the credit loss component of held to maturity and available for sale debt securities that have been written down for OTTI with the credit loss component recognized in earnings for the years ended September 30, 2018 , 2017 and 2016 (dollars in thousands): 2018 2017 2016 Balance, beginning of year $ 1,301 $ 1,505 $ 1,576 Additions: Additional increases to the amount related to credit loss for which OTTI was previously recognized 14 18 170 Subtractions: Realized losses previously recorded as credit losses (80 ) (171 ) (239 ) Recovery of prior credit loss (82 ) (51 ) (2 ) Balance, end of year $ 1,153 $ 1,301 $ 1,505 |
Schedule of Contractual Maturities of Debt Securities | The contractual maturities of debt securities at September 30, 2018 are as follows (dollars in thousands). Expected maturities may differ from scheduled maturities due to the prepayment of principal or call provisions. Held to Maturity Available for Sale Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 7,969 $ 7,946 $ — $ — Due after one year to five years 3,965 3,884 — — Due after five years to ten years 67 68 — — Due after ten years 809 1,366 231 237 Total $ 12,810 $ 13,264 $ 231 $ 237 |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of Loans Receivable and Loans Held for Sale | Loans receivable by portfolio segment consisted of the following at September 30, 2018 and 2017 (dollars in thousands): 2018 2017 Mortgage loans: One- to four-family $ 115,941 $ 118,147 Multi-family 61,928 58,607 Commercial 345,113 328,927 Construction – custom and owner/builder 119,555 117,641 Construction – speculative one- to four-family 15,433 9,918 Construction – commercial 39,590 19,630 Construction – multi-family 10,740 21,327 Construction – land development 3,040 — Land 25,546 23,910 Total mortgage loans 736,886 698,107 Consumer loans: Home equity and second mortgage 37,341 38,420 Other 3,515 3,823 Total consumer loans 40,856 42,243 Commercial business loans 43,053 44,444 Total loans receivable 820,795 784,794 Less: Undisbursed portion of construction loans in process 83,237 82,411 Deferred loan origination fees, net 2,637 2,466 Allowance for loan losses 9,530 9,553 95,404 94,430 Loans receivable, net $ 725,391 $ 690,364 |
Schedule of Activity in Related Party Loans | Activity in related party loans during the years ended September 30, 2018 , 2017 and 2016 was as follows (dollars in thousands): 2018 2017 2016 Balance, beginning of year $ 741 $ 230 $ 630 New loans or borrowings 368 592 66 Repayments and reclassifications (990 ) (81 ) (466 ) Balance, end of year $ 119 $ 741 $ 230 |
Schedule of Allowance for Loan Losses | The following table sets forth information for the year ended September 30, 2018 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands): Beginning Allowance Provision for (Recapture of) Loan Losses Charge- offs Recoveries Ending Allowance Mortgage loans: One- to four-family $ 1,082 $ 4 $ — $ — $ 1,086 Multi-family 447 (14 ) — — 433 Commercial 4,184 92 (28 ) — 4,248 Construction – custom and owner/builder 699 (28 ) — — 671 Construction – speculative one- to four-family 128 37 — 13 178 Construction – commercial 303 260 — — 563 Construction – multi-family 173 (38 ) — — 135 Construction – land development — 49 — — 49 Land 918 (71 ) (22 ) 19 844 Consumer loans: Home equity and second mortgage 983 (334 ) — — 649 Other 121 1 (6 ) 1 117 Commercial business loans 515 42 — — 557 Total $ 9,553 $ — $ (56 ) $ 33 $ 9,530 The following table sets forth information for the year ended September 30, 2017 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands): Beginning Allowance Provision for (Recapture of) Loan Losses Charge- offs Recoveries Ending Allowance Mortgage loans: One- to four-family $ 1,239 $ (178 ) $ — $ 21 $ 1,082 Multi-family 473 (26 ) — — 447 Commercial 4,384 (1,248 ) (13 ) 1,061 4,184 Construction – custom and owner/builder 619 80 — — 699 Construction – speculative one- to four-family 130 (8 ) — 6 128 Construction – commercial 268 35 — — 303 Construction – multi-family 316 (143 ) — — 173 Land 820 189 (110 ) 19 918 Consumer loans: Home equity and second mortgage 939 44 — — 983 Other 156 (28 ) (10 ) 3 121 Commercial business loans 482 33 — — 515 Total $ 9,826 $ (1,250 ) $ (133 ) $ 1,110 $ 9,553 The following table sets forth information for the year ended September 30, 2016 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands): Beginning Allowance Provision for (Recapture of) Loan Losses Charge- offs Recoveries Ending Allowance Mortgage loans: One- to four-family $ 1,480 $ (225 ) $ (72 ) $ 56 $ 1,239 Multi-family 392 81 — — 473 Commercial 4,065 528 (209 ) — 4,384 Construction – custom and owner/builder 451 168 — — 619 Construction – speculative one- to four-family 123 5 — 2 130 Construction – commercial 426 (158 ) — — 268 Construction – multi-family 283 (148 ) — 181 316 Land 1,021 (164 ) (61 ) 24 820 Consumer loans: Home equity and second mortgage 1,073 (116 ) (18 ) — 939 Other 187 (25 ) (8 ) 2 156 Commercial business loans 423 54 — 5 482 Total $ 9,924 $ — $ (368 ) $ 270 $ 9,826 |
Schedule of Loans Evaluated Individually for Impairment and Collectively Evaluated for Impairment in the Allowance for Loan Losses | The following table presents information on loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at September 30, 2018 (dollars in thousands): Allowance for Loan Losses Recorded Investment in Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Mortgage loans: One- to four-family $ — $ 1,086 $ 1,086 $ 1,054 $ 114,887 $ 115,941 Multi-family — 433 433 — 61,928 61,928 Commercial — 4,248 4,248 2,446 342,667 345,113 Construction – custom and owner/ builder — 671 671 — 67,024 67,024 Construction – speculative one- to four-family — 178 178 — 7,107 7,107 Construction – commercial — 563 563 — 23,440 23,440 Construction – multi-family — 135 135 — 5,983 5,983 Construction – land development — 49 49 — 1,567 1,567 Land 34 810 844 243 25,303 25,546 Consumer loans: Home equity and second mortgage — 649 649 359 36,982 37,341 Other — 117 117 — 3,515 3,515 Commercial business loans 63 494 557 170 42,883 43,053 Total $ 97 $ 9,433 $ 9,530 $ 4,272 $ 733,286 $ 737,558 The following table presents information on loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at September 30, 2017 (dollars in thousands): Allowance for Loan Losses Recorded Investment in Loans Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Mortgage loans: One- to four-family $ — $ 1,082 $ 1,082 $ 1,443 $ 116,704 $ 118,147 Multi-family — 447 447 — 58,607 58,607 Commercial 26 4,158 4,184 3,873 325,054 328,927 Construction – custom and owner/ builder — 699 699 — 63,538 63,538 Construction – speculative one- to four-family — 128 128 — 4,639 4,639 Construction – commercial — 303 303 — 11,016 11,016 Construction – multi-family — 173 173 — 6,912 6,912 Land 125 793 918 1,119 22,791 23,910 Consumer loans: Home equity and second mortgage 325 658 983 557 37,863 38,420 Other — 121 121 — 3,823 3,823 Commercial business loans — 515 515 — 44,444 44,444 Total $ 476 $ 9,077 $ 9,553 $ 6,992 $ 695,391 $ 702,383 |
Past Due Status of Loans Receivable | The following table presents an analysis of loans by aging category and portfolio segment at September 30, 2018 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due Non- Accrual(1) Past Due 90 Days or More and Still Accruing Total Past Due Current Total Loans Mortgage loans: One- to four-family $ 557 $ — $ 545 $ — $ 1,102 $ 114,839 $ 115,941 Multi-family — — — — — 61,928 61,928 Commercial 574 — — — 574 344,539 345,113 Construction – custom and owner/ builder — — — — — 67,024 67,024 Construction – speculative one- to four-family — — — — — 7,107 7,107 Construction – commercial — — — — — 23,440 23,440 Construction – multi-family — — — — — 5,983 5,983 Construction – land development — — — — — 1,567 1,567 Land 40 — 243 — 283 25,263 25,546 Consumer loans: Home equity and second mortgage 42 — 359 — 401 36,940 37,341 Other 10 16 — — 26 3,489 3,515 Commercial business loans — — 170 — 170 42,883 43,053 Total $ 1,223 $ 16 $ 1,317 $ — $ 2,556 $ 735,002 $ 737,558 __________________ (1) Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual. The following table presents an analysis of loans by aging category and portfolio segment at September 30, 2017 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due Non- Accrual(1) Past Due 90 Days or More and Still Accruing Total Past Due Current Total Loans Mortgage loans: One- to four-family $ 193 $ — $ 874 $ — $ 1,067 $ 117,080 $ 118,147 Multi-family — — — — — 58,607 58,607 Commercial — 107 213 — 320 328,607 328,927 Construction – custom and owner/ builder — — — — — 63,538 63,538 Construction – speculative one- to four-family — — — — — 4,639 4,639 Construction – commercial — — — — — 11,016 11,016 Construction – multi-family — — — — — 6,912 6,912 Land — — 566 — 566 23,344 23,910 Consumer loans: Home equity and second mortgage 56 — 258 — 314 38,106 38,420 Other 36 — — — 36 3,787 3,823 Commercial business loans 110 — — — 110 44,334 44,444 Total $ 395 $ 107 $ 1,911 $ — $ 2,413 $ 699,970 $ 702,383 ___________________ (1) Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual. |
Financing Receivable Credit Quality Indicators | The following table presents an analysis of loans by credit quality indicator and portfolio segment at September 30, 2018 (dollars in thousands): Loan Grades Pass Watch Special Mention Substandard Total Mortgage loans: One- to four-family $ 113,148 $ 882 $ 581 $ 1,330 $ 115,941 Multi-family 61,928 — — — 61,928 Commercial 334,908 8,375 988 842 345,113 Construction – custom and owner / builder 66,720 304 — — 67,024 Construction – speculative one- to four-family 7,107 — — — 7,107 Construction – commercial 23,440 — — — 23,440 Construction – multi-family 5,983 — — — 5,983 Construction – land development 1,567 — — — 1,567 Land 22,810 988 1,505 243 25,546 Consumer loans: Home equity and second mortgage 36,697 82 — 562 37,341 Other 3,480 — — 35 3,515 Commercial business loans 42,812 22 49 170 43,053 Total $ 720,600 $ 10,653 $ 3,123 $ 3,182 $ 737,558 The following table presents an analysis of loans by credit quality indicator and portfolio segment at September 30, 2017 (dollars in thousands): Loan Grades Pass Watch Special Mention Substandard Total Mortgage loans: One- to four-family $ 115,481 $ 422 $ 644 $ 1,600 $ 118,147 Multi-family 56,857 — 1,750 — 58,607 Commercial 318,717 6,059 3,540 611 328,927 Construction – custom and owner / builder 63,210 328 — — 63,538 Construction – speculative one- to four-family 4,639 — — — 4,639 Construction – commercial 11,016 — — — 11,016 Construction – multi-family 6,912 — — — 6,912 Land 20,528 1,022 1,794 566 23,910 Consumer loans: Home equity and second mortgage 37,828 152 — 440 38,420 Other 3,787 — — 36 3,823 Commercial business loans 43,416 973 55 — 44,444 Total $ 682,391 $ 8,956 $ 7,783 $ 3,253 $ 702,383 |
Impaired Financing Receivables | The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2018 (dollars in thousands): September 30, 2018 For the Year Ended September 30, 2018 Recorded Investment Unpaid Principal Balance (Loan Balance Plus Charge Off) Related Allowance Average Recorded Investment Interest Income Recognized Cash Basis Interest Income Recognized With no related allowance recorded: Mortgage loans: One- to four-family $ 1,054 $ 1,200 $ — $ 1,422 $ 80 $ 69 Commercial 2,446 2,446 — 2,389 121 93 Land 90 195 — 283 11 10 Consumer loans: Home equity and second mortgage 359 359 — 210 3 3 Subtotal 3,949 4,200 — 4,304 215 175 With an allowance recorded: Mortgage loans: One- to four-family — — — 9 — — Commercial — — — 760 28 21 Land 153 153 34 383 9 8 Consumer loans: Home equity and second mortgage — — — 310 16 13 Commercial business loans 170 170 63 141 — — Subtotal 323 323 97 1,603 53 42 Total: Mortgage loans: One- to four-family 1,054 1,200 — 1,431 80 69 Commercial 2,446 2,446 — 3,149 149 114 Land 243 348 34 666 20 18 Consumer loans: Home equity and second mortgage 359 359 — 520 19 16 Commercial business loans 170 170 63 141 — — Total $ 4,272 $ 4,523 $ 97 $ 5,907 $ 268 $ 217 The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2017 (dollars in thousands): September 30, 2017 For the Year Ended September 30, 2017 Recorded Unpaid Principal Related Average Interest Cash Basis With no related allowance recorded: Mortgage loans: One- to four-family $ 1,443 $ 1,589 $ — $ 1,108 $ 68 $ 62 Commercial 1,967 1,967 — 3,901 188 143 Construction – custom and owner / builder — — — 147 7 7 Land 297 410 — 512 8 6 Consumer loans: Home equity and second mortgage 123 123 — 284 — — Commercial business loans — — — 11 — — Subtotal 3,830 4,089 — 5,963 271 218 With an allowance recorded: Mortgage loans: One- to four-family — — — 721 50 38 Commercial 1,906 1,906 26 3,326 182 144 Land 822 881 125 666 35 29 Consumer loans: Home equity and second mortgage 434 434 325 530 29 26 Other — — — 17 — — Subtotal 3,162 3,221 476 5,260 296 237 Total: Mortgage loans: One- to four-family 1,443 1,589 — 1,829 118 100 Commercial 3,873 3,873 26 7,227 370 287 Construction – custom and owner / builder — — — 147 7 7 Land 1,119 1,291 125 1,178 43 35 Consumer loans: Home equity and second mortgage 557 557 325 814 29 26 Other — — — 17 — — Commercial business loans — — — 11 — — Total $ 6,992 $ 7,310 $ 476 $ 11,223 $ 567 $ 455 The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2016 (dollars in thousands): September 30, 2016 For the Year Ended September 30, 2016 Recorded Unpaid Principal Related Average Interest Cash Basis With no related allowance recorded: Mortgage loans: One- to four-family $ 914 $ 1,060 $ — $ 1,349 $ 38 $ 38 Multi-family — — — 152 — — Commercial 7,566 8,685 — 7,784 421 330 Construction – custom and owner / builder 367 367 — 73 — — Land 693 1,101 — 839 16 12 Consumer loans: Home equity and second mortgage 402 593 — 264 — — Commercial business loans — — — 15 — — Subtotal 9,942 11,806 — 10,476 475 380 With an allowance recorded: Mortgage loans: One- to four-family 1,350 1,350 70 1,921 118 89 Multi-family — — — 655 — — Commercial 3,743 3,743 413 4,181 275 215 Land 575 575 53 604 39 32 Consumer loans: Home equity and second mortgage 597 597 227 709 44 40 Other 30 30 13 33 2 2 Subtotal 6,295 6,295 776 8,103 478 378 Total: Mortgage loans: One- to four-family 2,264 2,410 70 3,270 156 127 Multi-family — — — 807 — — Commercial 11,309 12,428 413 11,965 696 545 Construction – custom and owner / builder 367 367 — 73 — — Land 1,268 1,676 53 1,443 55 44 Consumer loans: Home equity and second mortgage 999 1,190 227 973 44 40 Other 30 30 13 33 2 2 Commercial business loans — — — 15 — — Total $ 16,237 $ 18,101 $ 776 $ 18,579 $ 953 $ 758 |
Schedule of Troubled Debt Restructuring Loans by Interest Accrual Status | The following tables set forth information with respect to the Company’s TDRs by interest accrual status as of September 30, 2018 and 2017 (dollars in thousands): 2018 Accruing Non- Accrual Total Mortgage loans: One- to four-family $ 509 $ — $ 509 Commercial 2,446 — 2,446 Land — 153 153 Commercial business loans — 170 170 Total $ 2,955 $ 323 $ 3,278 2017 Accruing Non- Accrual Total Mortgage loans: One- to four-family $ 569 $ — $ 569 Commercial 2,219 — 2,219 Land 554 253 807 Total $ 3,342 $ 253 $ 3,595 |
Troubled Debt Restructurings on Financing Receivables | 2018 Number of Contracts Pre-Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment End of Period Balance Land loans (1) 1 $ 244 $ 155 $ 153 Commercial business loans (2) 2 183 183 170 Total 3 $ 427 $ 338 $ 323 (1) Modification was a result of a reduction in principal balance. (2) Modifications were a result of reduction in monthly payment amounts. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment consisted of the following at September 30, 2018 and 2017 (dollars in thousands): 2018 2017 Land $ 4,400 $ 4,402 Buildings and improvements 20,636 20,167 Furniture and equipment 8,026 7,935 Property held for future expansion 129 129 Construction and purchases in progress 566 149 33,757 32,782 Less accumulated depreciation 14,804 14,364 Premises and equipment, net $ 18,953 $ 18,418 |
Minimum net rental commitments under non-cancellable leases | Minimum net rental commitments under non-cancellable leases having an original or remaining term of more than one year for fiscal years ending subsequent to September 30, 2018 are as follows (dollars in thousands): 2019 $ 201 2020 165 2021 124 Total minimum payments required $ 490 |
OREO and Other Repossessed As_2
OREO and Other Repossessed Assets (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | |
Schedule of OREO and Other Repossesssed Assets | The following table presents the activity related to OREO and other repossessed assets for the years ended September 30, 2018 and 2017 (dollars in thousands): 2018 2017 Amount Number Number Balance, beginning of year $ 3,301 16 $ 4,117 23 Additions to OREO and other repossessed assets 324 2 751 4 Writedowns (248 ) — (42 ) — Sales of OREO and other repossessed assets (1,464 ) (6 ) (1,525 ) (11 ) Balance, end of year $ 1,913 12 $ 3,301 16 |
MSRs (Tables)
MSRs (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Transfers and Servicing [Abstract] | |
Analysis of the changes in MSRs | The following is an analysis of the changes in MSRs for the years ended September 30, 2018, 2017 and 2016 (dollars in thousands): 2018 2017 2016 Balance, beginning of year $ 1,825 $ 1,573 $ 1,478 Additions 694 739 650 Amortization (491 ) (487 ) (555 ) Balance, end of year $ 2,028 $ 1,825 $ 1,573 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposits consisted of the following at September 30, 2018 and 2017 (dollars in thousands): 2018 2017 Non-interest-bearing demand $ 233,258 $ 205,952 NOW checking 225,290 220,315 Savings 151,404 140,987 Money market 137,746 131,002 Certificates of deposit 141,808 139,642 Total $ 889,506 $ 837,898 |
Scheduled maturities of certificates of deposit for future years | Scheduled maturities of certificates of deposit for future years ending September 30 are as follows (dollars in thousands): 2019 $ 76,157 2020 32,004 2021 14,412 2022 11,991 2023 7,244 Total $ 141,808 |
Schedule of Interest Expense on Deposits | Interest expense on deposits by account type was as follows for the years ended September 30, 2018 , 2017 and 2016 (dollars in thousands): 2018 2017 2016 NOW checking $ 451 $ 460 $ 456 Savings 85 78 64 Money market 722 434 327 Certificates of deposit 1,520 1,246 1,194 Total $ 2,778 $ 2,218 $ 2,041 |
Other Liabilities and Accrued_2
Other Liabilities and Accrued Expenses: Schedule of Other Liabilities and Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Other Liabilities and Accrued Expenses | Other liabilities and accrued expenses were comprised of the following at September 30, 2018 and 2017 (dollars in thousands): 2018 2017 Accrued deferred compensation, profit sharing plans and bonuses payable $ 1,235 $ 1,134 Accrued interest payable on deposits 225 161 Accounts payable and accrued expenses - other 2,667 1,831 Total other liabilities and accrued expenses $ 4,127 $ 3,126 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes for the years ended September 30, 2018 , 2017 and 2016 were as follows (dollars in thousands): 2018 2017 2016 Current: Federal $ 4,900 $ 6,656 $ 4,618 State 4 35 — Deferred 797 385 283 Provision for income taxes $ 5,701 $ 7,076 $ 4,901 |
Schedule of Deferred Tax Assets and Liabilities | The components of the Company’s deferred tax assets and liabilities at September 30, 2018 and 2017 were as follows (dollars in thousands): 2018 2017 Deferred Tax Assets Allowance for loan losses $ 2,021 $ 3,380 Allowance for OREO losses 311 443 Unearned ESOP shares 32 148 Core deposit intangible 31 103 OTTI credit impairment on investment securities 104 173 Accrued interest on loans 10 29 Net unrealized losses on investment securities 42 66 Deferred compensation and bonuses 56 94 Reserve for loan commitments 43 75 Other 29 39 Total deferred tax assets 2,679 4,550 Deferred Tax Liabilities Goodwill 1,107 1,714 MSRs 426 639 Depreciation 283 480 Loan fees/costs 121 — FHLB stock dividends 82 137 Prepaid expenses 74 140 Other 2 35 Total deferred tax liabilities 2,095 3,145 Net deferred tax assets $ 584 $ 1,405 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes for the years ended September 30, 2018 , 2017 and 2016 differs from that computed at the federal statutory corporate tax rate as follows (dollars in thousands): 2018 2017 2016 Expected federal income tax provision at statutory rate $ 5,500 $ 7,435 $ 5,160 Net impact of the Tax Act 548 — — BOLI income (134 ) (191 ) (189 ) Dividends on ESOP (71 ) (102 ) (83 ) Stock options tax effect (157 ) (188 ) — Other, net 15 122 13 Provision for income taxes $ 5,701 $ 7,076 $ 4,901 |
Employee Stock Ownership and _2
Employee Stock Ownership and 401(k) Plan (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Shares Held by the ESOP | Shares held by the ESOP as of September 30, 2018 , 2017 and 2016 were classified as follows: 2018 2017 2016 Unallocated shares 17,639 52,905 88,171 Shares released for allocation 451,644 489,665 535,927 Total ESOP shares 469,283 542,570 624,098 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Share-based Compensation [Abstract] | |
Schedule of Stock Option Activity | Stock option activity for the years ended September 30, 2018 , 2017 and 2016 is summarized as follows: Number of Weighted Average Outstanding September 30, 2015 341,300 $ 8.73 Options granted 55,750 15.67 Options exercised (21,020 ) 7.56 Options forfeited (2,900 ) 9.96 Outstanding September 30, 2016 373,130 9.82 Options granted 58,250 29.69 Options exercised (46,310 ) 7.17 Options forfeited (4,950 ) 6.28 Outstanding September 30, 2017 380,120 13.23 Options granted 45,950 31.80 Options exercised (40,100 ) 7.92 Options forfeited (5,150 ) 13.39 Outstanding September 30, 2018 380,820 $ 16.03 |
Schedule of Fair Value Assumptions | The weighted average assumptions for options granted during the years ended September 30, 2018 , 2017 and 2016 were as follows: 2018 2017 2016 Expected volatility 17 % 16 % 16 % Expected life (in years) 5 5 5 Expected dividend yield 2.61 % 1.85 % 3.00 % Risk free interest rate 2.97 % 1.89 % 1.12 % Grant date fair value per share $ 4.48 $ 3.84 $ 1.46 |
Schedule of Stock Option Plans, by Exercise Price Range | Additional information regarding options outstanding at September 30, 2018 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices ($) Number Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Number Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) $ 4.01 - 4.55 2,500 $ 4.23 2.3 2,500 $ 4.23 2.3 5.86 - 6.00 28,550 5.96 4.1 28,550 5.96 4.1 9.00 72,800 9.00 5.1 54,600 9.00 5.1 10.26 - 10.71 121,320 10.58 6.5 67,420 10.56 6.5 15.67 52,200 15.67 8.0 19,500 15.67 8.0 29.69 57,500 29.69 9.0 11,500 $ 29.69 9.0 31.80 45,950 31.80 10.0 — N/A N/A 380,820 $ 16.03 7.0 184,070 $ 11.04 5.9 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Supply Commitment | A summary of the Company’s commitments at September 30, 2018 and 2017 is as follows (dollars in thousands): 2018 2017 Undisbursed portion of construction loans in process (see Note 4) $ 83,237 $ 82,411 Undisbursed lines of credit 49,525 51,420 Commitments to extend credit 17,665 19,673 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents the regulatory capital ratios for Timberland Bancorp at September 30, 2018 and 2017 (dollars in thousands): 2018 2017 Amount Ratio Amount Ratio Leverage Capital Ratio: Tier 1 capital $ 120,175 12.0 % $ 107,145 11.5 % Risk-based Capital Ratios: Common equity Tier 1 capital 120,175 17.1 107,145 16.3 Tier 1 capital 120,175 17.1 107,145 16.3 Total capital 128,955 18.4 115,376 17.6 The following tables compare the Bank’s actual capital amounts at September 30, 2018 and 2017 to its minimum regulatory capital requirements and "Well Capitalized" regulatory capital at those dates (dollars in thousands): September 30, 2018 Actual Regulatory Minimum To Be "Adequately Capitalized" Regulatory MinimumTo Be "Well Capitalized" Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Leverage Capital Ratio: Tier 1 capital $ 117,336 11.7 % $ 40,024 4.0 % $ 50,031 5.0 % Risk-based Capital Ratios: Common equity Tier 1 capital 117,336 16.7 31,539 4.5 45,557 6.5 Tier 1 capital 117,336 16.7 42,052 6.0 56,070 8.0 Total capital 126,109 18.0 56,070 8.0 70,087 10.0 September 30, 2017 Actual Regulatory Minimum To Be "Adequately Capitalized" Regulatory Minimum To Be "Well Capitalized" Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Leverage Capital Ratio: Tier 1 capital $ 104,102 11.2 % $ 37,116 4.0 % $ 46,395 5.0 % Risk-based Capital Ratios: Common equity Tier 1 capital 104,102 15.9 29,547 4.5 42,678 6.5 Tier 1 capital 104,102 15.9 39,395 6.0 52,527 8.0 Total capital 112,329 17.1 52,527 8.0 65,659 10.0 |
Condensed Financial Informati_2
Condensed Financial Information - Parent Company Only (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets, Parent Company | Condensed Balance Sheets - September 30, 2018 and 2017 (dollars in thousands) 2018 2017 Assets Cash and cash equivalents: Cash and due from financial institutions $ 306 $ 485 Interest-bearing deposits in banks 2,588 1,797 Total cash and cash equivalents 2,894 2,282 Loan receivable from ESOP 285 821 Investment in Bank 121,818 107,957 Other assets 15 14 Total assets $ 125,012 $ 111,074 Liabilities and shareholders’ equity Accrued expenses $ 355 $ 74 Shareholders’ equity 124,657 111,000 Total liabilities and shareholders’ equity $ 125,012 $ 111,074 |
Condensed Statements of Operations, Parent Company | Condensed Statements of Income - Years Ended September 30, 2018 , 2017 and 2016 (dollars in thousands) 2018 2017 2016 Operating income Interest on deposits in banks $ 37 $ 27 $ 3 Interest on loan receivable from ESOP 53 96 136 Dividends from Bank 4,429 1,390 3,039 Total operating income 4,519 1,513 3,178 Operating expenses 591 467 430 Income before income taxes and equity in undistributed income of Bank 3,928 1,046 2,748 Benefit for income taxes (198 ) (385 ) (183 ) Income before undistributed income of Bank 4,126 1,431 2,931 Equity in undistributed income of Bank 12,595 12,736 7,223 Net income $ 16,721 $ 14,167 $ 10,154 |
Condensed Statements of Cash Flows, Parent Company | Condensed Statements of Cash Flows - Years Ended September 30, 2018 , 2017 and 2016 (dollars in thousands) 2018 2017 2016 Cash flows from operating activities Net income $ 16,721 $ 14,167 $ 10,154 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of Bank (12,595 ) (12,736 ) (7,223 ) Earned ESOP shares 882 605 404 Stock option compensation expense 172 156 190 Other, net 280 33 (65 ) Net cash provided by operating activities 5,460 2,225 3,460 Cash flows from investing activities Investment in Bank (1,271 ) (930 ) (616 ) Principal repayments on loan receivable from ESOP 536 493 452 Net cash used in investing activities (735 ) (437 ) (164 ) Cash flows from financing activities Proceeds from exercise of stock options 318 332 159 Proceeds from exercise of stock warrant — 2,496 — Repurchase of common stock — — (820 ) Payment of dividends (4,431 ) (3,641 ) (2,578 ) Net cash used in financing activities (4,113 ) (813 ) (3,239 ) Net increase in cash and cash equivalents 612 975 57 Cash and cash equivalents Beginning of period 2,282 1,307 1,250 End of period $ 2,894 $ 2,282 $ 1,307 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Information regarding the calculation of basic and diluted net income per common share for the years ended September 30, 2018 , 2017 and 2016 is as follows (dollars in thousands, except per share amounts): 2018 2017 2016 Basic net income per common share computation Numerator - net income to common shareholders $ 16,721 $ 14,167 $ 10,154 Denominator - weighted average common shares outstanding 7,334,577 7,136,690 6,842,614 Basic net income per common share $ 2.28 $ 1.99 $ 1.48 Diluted net income per common share computation Numerator - net income to common shareholders $ 16,721 $ 14,167 $ 10,154 Denominator - weighted average common shares outstanding 7,334,577 7,136,690 6,842,614 Effect of dilutive stock options (1) 191,767 163,773 78,910 Effect of dilutive stock warrant (2) — 79,590 183,825 Weighted average common shares outstanding-assuming dilution 7,526,344 7,380,053 7,105,349 Diluted net income per common share $ 2.22 $ 1.92 $ 1.43 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) ("AOCI") by component during the years ended September 30, 2018, 2017 and 2016 are as follows (dollars in thousands): Changes in fair value of available for sale securities [1] Other-than-temporary impairment on held to maturity securities [1] Total [1] 2018 Balance of AOCI at the beginning of period $ (19 ) $ (105 ) $ (124 ) Net change (39 ) 34 (5 ) Balance of AOCI at the end of period $ (58 ) $ (71 ) $ (129 ) 2017 Balance of AOCI at the beginning of period $ 4 $ (179 ) $ (175 ) Net change (23 ) 74 51 Balance of AOCI at the end of period $ (19 ) $ (105 ) $ (124 ) 2016 Balance of AOCI at the beginning of period $ 3 $ (316 ) $ (313 ) Net change 1 137 138 Balance of AOCI at the end of period $ 4 $ (179 ) $ (175 ) ___________________ [1] All amounts are net of income taxes. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The Company's assets measured at estimated fair value on a recurring basis at September 30, 2018 and 2017 are as follows (dollars in thousands): Estimated Fair Value September 30, 2018 Level 1 Level 2 Level 3 Total Available for sale investment securities MBS: U.S. government agencies $ — $ 237 $ — $ 237 Mutual funds 917 — — 917 Total $ 917 $ 237 $ — $ 1,154 September 30, 2017 Available for sale investment securities MBS: U.S. government agencies $ — $ 289 $ — $ 289 Mutual funds 952 — — 952 Total $ 952 $ 289 $ — $ 1,241 |
Balances of Assets Measured at Estimated Fair Value, Nonrecurring Basis | The following table summarizes the balances of assets measured at estimated fair value on a non-recurring basis at September 30, 2018 (dollars in thousands): Estimated Fair Value Impaired loans: Level 1 Level 2 Level 3 Mortgage loans: Land $ — $ — $ 119 Commercial business loans — — 107 Total impaired loans — — 226 Investment securities – held to maturity: MBS - Private label residential — 3 — OREO and other repossessed assets — — 1,913 Total $ — $ 3 $ 2,139 The following table summarizes the balances of assets measured at estimated fair value on a non-recurring basis at September 30, 2017 (dollars in thousands): Estimated Fair Value Impaired loans: Level 1 Level 2 Level 3 Mortgage loans: Commercial $ — $ — $ 1,880 Land — — 697 Consumer loans: Home equity and second mortgage — — 109 Total impaired loans — — 2,686 Investment securities – held to maturity: MBS - Private label residential — 125 — OREO and other repossessed assets — — 3,301 Total $ — $ 125 $ 5,987 |
Level 3 Fair Value Measurements, Nonrecurring Basis | The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis as of September 30, 2018 (dollars in thousands): Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range Impaired loans $ 226 Market approach Appraised value less selling costs NA OREO and other repossessed assets 1,913 Market approach Lower of appraised value or listing price less selling costs NA The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis as of September 30, 2017 (dollars in thousands): Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range Impaired loans $ 2,686 Market approach Appraised value less selling costs NA OREO and other repossessed assets 3,301 Market approach Lower of appraised value or listing price less selling costs NA |
Balances of Assets and Liabilities Measured at Estimated Fair Value, Recurring Basis | The recorded amounts and estimated fair values of financial instruments were as follows as of September 30, 2018 (dollars in thousands): Fair Value Measurements Using: Recorded Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 148,864 $ 148,864 $ 148,864 $ — $ — CDs held for investment 63,290 63,290 63,290 — — Investment securities 13,964 14,418 8,812 5,606 — FHLB stock 1,190 1,190 1,190 — — Other investments 3,000 3,000 3,000 — — Loans held for sale 1,785 1,814 1,814 — — Loans receivable, net 725,391 711,071 — — 711,071 Accrued interest receivable 2,877 2,877 2,877 — — Financial Liabilities Deposits: Non-interest-bearing demand 233,258 233,258 233,258 — — Interest-bearing 656,248 655,271 514,440 — 140,831 Total deposits 889,506 888,529 747,698 — 140,831 Accrued interest payable 225 225 225 — — The recorded amounts and estimated fair values of financial instruments were as follows as of September 30, 2017 (dollars in thousands): Fair Value Measurements Using: Recorded Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 148,188 $ 148,188 $ 148,188 $ — $ — CDs held for investment 43,034 43,034 43,034 — — Investment securities 8,380 8,985 3,954 5,031 — FHLB stock 1,107 1,107 1,107 — — Other investments 3,000 3,000 3,000 — — Loans held for sale 3,599 3,619 3,619 — — Loans receivable, net 690,364 688,332 — — 688,332 Accrued interest receivable 2,520 2,520 2,520 — — Financial Liabilities Deposits: Non-interest-bearing demand 205,952 205,952 205,952 — — Interest-bearing 631,946 632,629 492,305 — 140,324 Total deposits 837,898 838,581 698,257 — 140,324 Accrued interest payable 161 161 161 — — |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited): Selected financial data (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | The following selected financial data is presented for the quarters ended (dollars in thousands, except per share amounts): September 30, June 30, March 31, December 31, Interest and dividend income $ 11,051 $ 10,457 $ 10,290 $ 10,035 Interest expense (781 ) (730 ) (666 ) (601 ) Net interest income 10,270 9,727 9,624 9,434 Non-interest income 3,180 3,145 3,082 3,137 Non-interest expense (1) (7,658 ) (7,122 ) (7,221 ) (7,176 ) Income before income taxes 5,792 5,750 5,485 5,395 Provision for income taxes 1,370 1,334 1,216 1,781 Net income $ 4,422 $ 4,416 $ 4,269 $ 3,614 Net income per common share Basic (2) $ 0.60 $ 0.60 $ 0.58 $ 0.49 Diluted (2) $ 0.59 $ 0.59 $ 0.57 $ 0.48 __________________________________________ (1) During the quarters ended December 31, 2017, March 31, 2018, June 30, 2018 and September 30, 2018 the Company incurred expenses related to the acquisition of South Sound Bank of $9 , $80 , $181 , and $346 , respectively. (2) The net income per common share amounts for the quarters do not add to the total for the fiscal year due to rounding. September 30, June 30, March 31, December 31, Interest and dividend income $ 9,711 $ 10,165 $ 9,299 $ 9,163 Interest expense (582 ) (918 ) (847 ) (850 ) Net interest income 9,129 9,247 8,452 8,313 Recapture of loan losses (1) — (1,000 ) (250 ) — Non-interest income 3,145 3,156 2,851 3,216 Non-interest expense (6,911 ) (6,938 ) (6,857 ) (6,810 ) Income before income taxes 5,363 6,465 4,696 4,719 Provision for income taxes 1,748 2,188 1,568 1,572 Net income $ 3,615 $ 4,277 $ 3,128 $ 3,147 Net income per common share Basic $ 0.50 $ 0.59 $ 0.44 $ 0.46 Diluted (2) $ 0.48 $ 0.58 $ 0.42 $ 0.43 __________________________________________ (1) During the quarters ended March 31, 2017 and June 30, 2017 the Company recorded recaptures of loan losses of $250 and $1,000 , respectively, primarily as a result of significant recoveries on loans which had previously been charged off in prior years and improvements in other credit quality metrics. (2) The net income per common share amounts for the quarters do not add to the total for the fiscal year due to rounding. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies: Operations (Details) | 12 Months Ended |
Sep. 30, 2018branchsegment | |
Accounting Policies [Abstract] | |
Number of branches | branch | 22 |
Number of reportable operating segments | segment | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies: Cash (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Interest-bearing deposits in Federal Reserve Bank | $ 128,626 | $ 130,741 |
Minimum | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Maturity of CDs held for investment | 12 months | |
Maximum | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Maturity of CDs held for investment | 24 months | |
Interest-bearing deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Interest-bearing deposits in Federal Reserve Bank | $ 123,745 | $ 127,128 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies: FHLB Stock (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB, stock impairment charges | $ 0 | $ 0 |
Minimum | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB, investment in capital stock, home loans (percent) | 0.12% | |
FHLB, investment in capital stock, advances (percent) | 4.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies: Premises and Equipment (Details) | 12 Months Ended |
Sep. 30, 2018 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies: Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Chairman of the Board | |||
Related Party Transaction [Line Items] | |||
Related party transaction, legal fees | $ 94 | $ 99 | $ 127 |
Restricted Assets (Details)
Restricted Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Federal Reserve Bank | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted assets | $ 1,609 | $ 1,658 |
Investment Securities_ Marketab
Investment Securities: Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Held to Maturity | ||
Amortized Cost | $ 12,810 | $ 7,139 |
Gross Unrealized Gains | 560 | 617 |
Gross Unrealized Losses | (106) | (12) |
Estimated Fair Value | 13,264 | 7,744 |
Available for Sale | ||
Amortized Cost | 1,231 | 1,271 |
Gross Unrealized Gains | 7 | 18 |
Gross Unrealized Losses | (84) | (48) |
Estimated Fair Value | 1,154 | 1,241 |
Mortgage-backed Securities, U.S. government agencies | ||
Held to Maturity | ||
Amortized Cost | 1,385 | 532 |
Gross Unrealized Gains | 8 | 11 |
Gross Unrealized Losses | (21) | (1) |
Estimated Fair Value | 1,372 | 542 |
Available for Sale | ||
Amortized Cost | 231 | 271 |
Gross Unrealized Gains | 7 | 18 |
Gross Unrealized Losses | (1) | 0 |
Estimated Fair Value | 237 | 289 |
Mortgage-backed Securities, Private label residential | ||
Held to Maturity | ||
Amortized Cost | 460 | 599 |
Gross Unrealized Gains | 552 | 596 |
Gross Unrealized Losses | (2) | (2) |
Estimated Fair Value | 1,010 | 1,193 |
U.S. agency securities | ||
Held to Maturity | ||
Amortized Cost | 10,965 | 6,008 |
Gross Unrealized Gains | 0 | 10 |
Gross Unrealized Losses | (83) | (9) |
Estimated Fair Value | 10,882 | 6,009 |
Mutual funds | ||
Available for Sale | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (83) | (48) |
Estimated Fair Value | $ 917 | $ 952 |
Investment Securities_ Unrealiz
Investment Securities: Unrealized Gain (Loss) on Investments (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018USD ($)security | Sep. 30, 2017USD ($)security | |
Held-to-maturity Securities, Fair Value: | ||
Estimated Fair Value - Less Than 12 Months | $ 8,900 | $ 2,984 |
Estimated Fair Value - 12 Months or Longer | 3,049 | 199 |
Total Estimated Fair Value | 11,949 | 3,183 |
Held-to-maturity Securities, Gross Unrealized Losses | ||
Gross Unrealized Losses - Less Than 12 Months | (42) | (9) |
Gross Unrealized Losses - 12 Months or Longer | (64) | (3) |
Total Gross Unrealized Losses | $ (106) | $ (12) |
Held-to-maturity, Qty, Less Than 12 Months | security | 4 | 1 |
Held-to-maturity, Qty, 12 Months or Longer | security | 14 | 16 |
Available-for-sale Securities, Fair Value: | ||
Estimated Fair Value - Less Than 12 Months | $ 34 | $ 0 |
Estimated Fair Value - 12 Months or Longer | 917 | 952 |
Total Estimated Fair Value | 951 | 952 |
Available-for-sale Securities, Gross Unrealized Losses: | ||
Gross Unrealized Losses - Less Than 12 Months | (1) | 0 |
Gross Unrealized Losses - 12 Months or Longer | (83) | (48) |
Total Gross Unrealized Losses | $ (84) | $ (48) |
Available-for-sale, Qty, Less than 12 Months | security | 1 | 0 |
Available-for-sale, Qty, 12 Months or Longer | security | 1 | 1 |
Mortgage-backed Securities, U.S. government agencies | ||
Held-to-maturity Securities, Fair Value: | ||
Estimated Fair Value - Less Than 12 Months | $ 954 | $ 0 |
Estimated Fair Value - 12 Months or Longer | 64 | 114 |
Total Estimated Fair Value | 1,018 | 114 |
Held-to-maturity Securities, Gross Unrealized Losses | ||
Gross Unrealized Losses - Less Than 12 Months | (20) | 0 |
Gross Unrealized Losses - 12 Months or Longer | (1) | (1) |
Total Gross Unrealized Losses | $ (21) | $ (1) |
Held-to-maturity, Qty, Less Than 12 Months | security | 2 | 0 |
Held-to-maturity, Qty, 12 Months or Longer | security | 5 | 6 |
Available-for-sale Securities, Fair Value: | ||
Estimated Fair Value - Less Than 12 Months | $ 34 | |
Estimated Fair Value - 12 Months or Longer | 0 | |
Total Estimated Fair Value | 34 | |
Available-for-sale Securities, Gross Unrealized Losses: | ||
Gross Unrealized Losses - Less Than 12 Months | (1) | |
Gross Unrealized Losses - 12 Months or Longer | 0 | |
Total Gross Unrealized Losses | $ (1) | |
Available-for-sale, Qty, Less than 12 Months | security | 1 | |
Available-for-sale, Qty, 12 Months or Longer | security | 0 | |
Mortgage-backed Securities, Private label residential | ||
Held-to-maturity Securities, Fair Value: | ||
Estimated Fair Value - Less Than 12 Months | $ 0 | $ 0 |
Estimated Fair Value - 12 Months or Longer | 50 | 85 |
Total Estimated Fair Value | 50 | 85 |
Held-to-maturity Securities, Gross Unrealized Losses | ||
Gross Unrealized Losses - Less Than 12 Months | 0 | 0 |
Gross Unrealized Losses - 12 Months or Longer | (2) | (2) |
Total Gross Unrealized Losses | $ (2) | $ (2) |
Held-to-maturity, Qty, Less Than 12 Months | security | 0 | 0 |
Held-to-maturity, Qty, 12 Months or Longer | security | 8 | 10 |
US Government Agencies Debt Securities | ||
Held-to-maturity Securities, Fair Value: | ||
Estimated Fair Value - Less Than 12 Months | $ 7,946 | $ 2,984 |
Estimated Fair Value - 12 Months or Longer | 2,935 | 0 |
Total Estimated Fair Value | 10,881 | 2,984 |
Held-to-maturity Securities, Gross Unrealized Losses | ||
Gross Unrealized Losses - Less Than 12 Months | (22) | (9) |
Gross Unrealized Losses - 12 Months or Longer | (61) | 0 |
Total Gross Unrealized Losses | $ (83) | $ (9) |
Held-to-maturity, Qty, Less Than 12 Months | security | 2 | 1 |
Held-to-maturity, Qty, 12 Months or Longer | security | 1 | 0 |
Mutual funds | ||
Available-for-sale Securities, Fair Value: | ||
Estimated Fair Value - Less Than 12 Months | $ 0 | $ 0 |
Estimated Fair Value - 12 Months or Longer | 917 | 952 |
Total Estimated Fair Value | 917 | 952 |
Available-for-sale Securities, Gross Unrealized Losses: | ||
Gross Unrealized Losses - Less Than 12 Months | 0 | 0 |
Gross Unrealized Losses - 12 Months or Longer | (83) | (48) |
Total Gross Unrealized Losses | $ (83) | $ (48) |
Available-for-sale, Qty, Less than 12 Months | security | 0 | 0 |
Available-for-sale, Qty, 12 Months or Longer | security | 1 | 1 |
Investment Securities_ Schedule
Investment Securities: Schedule of significant inputs utilized to measure management's estimate of the credit loss component on OTTI securities (Details) | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Minimum | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
OTTI significant inputs - Constant prepayment rate | 6.00% | 6.00% | 6.00% |
OTTI significant inputs - Collateral default rate | 0.00% | 0.03% | 0.07% |
OTTI significant inputs - Loss severity rate | 0.00% | 1.00% | 1.00% |
Maximum | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
OTTI significant inputs - Constant prepayment rate | 15.00% | 15.00% | 15.00% |
OTTI significant inputs - Collateral default rate | 10.42% | 10.75% | 14.45% |
OTTI significant inputs - Loss severity rate | 75.00% | 62.00% | 73.00% |
Weighted Average | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
OTTI significant inputs - Constant prepayment rate | 12.91% | 10.40% | 11.29% |
OTTI significant inputs - Collateral default rate | 5.03% | 4.84% | 5.47% |
OTTI significant inputs - Loss severity rate | 37.25% | 41.75% | 42.26% |
Investment Securities_ Schedu_2
Investment Securities: Schedule of Other than Temporary Impairments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Held to Maturity | ||||
Held To Maturity - total (OTTI) recoveries | $ 73 | $ 38 | $ (29) | |
Net recoveries (OTTI) on investment securities | 68 | 33 | (168) | |
Held-to-maturity Securities | ||||
Held to Maturity | ||||
Held To Maturity - total (OTTI) recoveries | 73 | 38 | (29) | |
Held To Maturity - adjustment for portion of OTTI recorded as (transferred from) other comprehensive income (before income taxes) | [1] | (5) | (5) | (139) |
Net recoveries (OTTI) on investment securities | [2] | $ 68 | $ 33 | $ (168) |
[1] | Represents OTTI related to all other factors. | |||
[2] | Represents OTTI related to credit losses. |
Investment Securities_ Other th
Investment Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Balance, beginning of year | $ 1,301 | $ 1,505 | $ 1,576 |
Additional increases to the amount related to credit loss for which OTTI was previously recognized | 14 | 18 | 170 |
Realized losses previously recorded as credit losses | (80) | (171) | (239) |
Recovery of prior credit loss | (82) | (51) | (2) |
Balance, end of year | $ 1,153 | $ 1,301 | $ 1,505 |
Investment Securities_ Narrativ
Investment Securities: Narrative-Realized Gains (Losses) (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018USD ($)security | Sep. 30, 2017USD ($)security | Sep. 30, 2016USD ($)security | |
Investments [Abstract] | |||
Loss on sale of securities | $ 80 | $ 171 | $ 239 |
Held-to-maturity securities, realized loss, number of securities | security | 16 | 22 | 20 |
Security owned and pledged as collateral | $ 12,100 | $ 6,824 |
Investment Securities_ Schedu_3
Investment Securities: Schedule of Contractual maturities of debt securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Held-to-maturity Securities, Amortized Cost: | ||
Due within one year | $ 7,969 | |
Due after one year to five years | 3,965 | |
Due after five years to ten years | 67 | |
Due after ten years | 809 | |
Total | 12,810 | $ 7,139 |
Held-to-maturity Securities, Estimated Fair Value: | ||
Due within one year | 7,946 | |
Due after one year to five years | 3,884 | |
Due after five years to ten years | 68 | |
Due after ten years | 1,366 | |
Total | 13,264 | $ 7,744 |
Available-for-sale Securities, Amortized Cost: | ||
Due within one year | 0 | |
Due after one year to five years | 0 | |
Due after five years to ten years | 0 | |
Due after ten years | 231 | |
Total | 231 | |
Available-for-sale Securities, Estimated Fair Value: | ||
Due within one year | 0 | |
Due after one year to five years | 0 | |
Due after five years to ten years | 0 | |
Due after ten years | 237 | |
Total | $ 237 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses: Schedule of Loans receivable and Loans held for sale (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | $ 820,795 | $ 784,794 |
Undisbursed portion of construction loans in process | 83,237 | 82,411 |
Deferred loan origination fees | 2,637 | 2,466 |
Allowance for loan losses | 9,530 | 9,553 |
Less: Loans in process, Deferred fees and Allowance for loan losses | 95,404 | 94,430 |
Total loans receivable, net | 725,391 | 690,364 |
Total mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 736,886 | 698,107 |
Mortgage loans, one-to-four family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 115,941 | 118,147 |
Mortgage loans, multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 61,928 | 58,607 |
Mortgage loans, commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 345,113 | 328,927 |
Mortgage loans, construction - custom and owner/builder | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 119,555 | 117,641 |
Mortgage loans, construction - speculative one-to-four family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 15,433 | 9,918 |
Mortgage loans, construction - commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 39,590 | 19,630 |
Mortgage loans, construction - multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 10,740 | 21,327 |
Mortgage loans - construction - land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 3,040 | 0 |
Mortgage loans, land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 25,546 | 23,910 |
Total consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans | 40,856 | 42,243 |
Consumer loans, home equity and second mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans | 37,341 | 38,420 |
Consumer loans, other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans | 3,515 | 3,823 |
Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial business loans | $ 43,053 | $ 44,444 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses: Significant Concentrations of Credit Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Receivables [Abstract] | ||
Loans secured by real estate | $ 774,227 | |
Undisbursed portion of construction loans in process | $ 83,237 | $ 82,411 |
Loans secured by real estate, percentage of total portfolio (as a percent) | 94.30% | |
Concentration of credit risk, real estate loans by industry, benchmark percentage (as a percent) | 20.00% | |
Ratio of loans to appraisal or purchase price (as a percent) | 90.00% |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses: Schedule of Activity in Related Party Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Balance, beginning of year | $ 741 | $ 230 | $ 630 |
New loans or borrowings | 368 | 592 | 66 |
Repayments and reclassifications | (990) | (81) | (466) |
Balance, end of year | $ 119 | $ 741 | $ 230 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses: Loan Segment Risk Narrative (Details) | 12 Months Ended |
Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Ratio of loans to appraisal or purchase price (as a percent) | 90.00% |
Mortgage loans, one-to-four family | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Ratio of loans to appraisal or purchase price (as a percent) | 90.00% |
Ratio of loans to appraised value, private mortgage insurance requirement, percentage limit | 80.00% |
Mortgage loans, commercial | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Ratio of loans to appraisal or purchase price (as a percent) | 80.00% |
Mortgage loans, land | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Ratio of loans to appraisal or purchase price (as a percent) | 75.00% |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses: Schedule of Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | $ 9,553 | $ 9,826 | $ 9,924 |
Provision for (Recapture of) Loan Losses | 0 | (1,250) | 0 |
Charge-offs | (56) | (133) | (368) |
Recoveries | 33 | 1,110 | 270 |
Allowance for loan losses, Ending Allowance | 9,530 | 9,553 | 9,826 |
Mortgage loans, one-to-four family | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 1,082 | 1,239 | 1,480 |
Provision for (Recapture of) Loan Losses | 4 | (178) | (225) |
Charge-offs | 0 | 0 | (72) |
Recoveries | 0 | 21 | 56 |
Allowance for loan losses, Ending Allowance | 1,086 | 1,082 | 1,239 |
Mortgage loans, multi-family | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 447 | 473 | 392 |
Provision for (Recapture of) Loan Losses | (14) | (26) | 81 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Allowance for loan losses, Ending Allowance | 433 | 447 | 473 |
Mortgage loans, commercial | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 4,184 | 4,384 | 4,065 |
Provision for (Recapture of) Loan Losses | 92 | (1,248) | 528 |
Charge-offs | (28) | (13) | (209) |
Recoveries | 0 | 1,061 | 0 |
Allowance for loan losses, Ending Allowance | 4,248 | 4,184 | 4,384 |
Mortgage loans, construction - custom and owner/builder | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 699 | 619 | 451 |
Provision for (Recapture of) Loan Losses | (28) | 80 | 168 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Allowance for loan losses, Ending Allowance | 671 | 699 | 619 |
Mortgage loans, construction - speculative one-to-four family | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 128 | 130 | 123 |
Provision for (Recapture of) Loan Losses | 37 | (8) | 5 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 13 | 6 | 2 |
Allowance for loan losses, Ending Allowance | 178 | 128 | 130 |
Mortgage loans, construction - commercial | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 303 | 268 | 426 |
Provision for (Recapture of) Loan Losses | 260 | 35 | (158) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Allowance for loan losses, Ending Allowance | 563 | 303 | 268 |
Mortgage loans, construction - multi-family | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 173 | 316 | 283 |
Provision for (Recapture of) Loan Losses | (38) | (143) | (148) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 181 |
Allowance for loan losses, Ending Allowance | 135 | 173 | 316 |
Mortgage loans - construction - land development | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 0 | ||
Provision for (Recapture of) Loan Losses | 49 | ||
Charge-offs | 0 | ||
Recoveries | 0 | ||
Allowance for loan losses, Ending Allowance | 49 | 0 | |
Mortgage loans, land | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 918 | 820 | 1,021 |
Provision for (Recapture of) Loan Losses | (71) | 189 | (164) |
Charge-offs | (22) | (110) | (61) |
Recoveries | 19 | 19 | 24 |
Allowance for loan losses, Ending Allowance | 844 | 918 | 820 |
Consumer loans, home equity and second mortgage | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 983 | 939 | 1,073 |
Provision for (Recapture of) Loan Losses | (334) | 44 | (116) |
Charge-offs | 0 | 0 | (18) |
Recoveries | 0 | 0 | 0 |
Allowance for loan losses, Ending Allowance | 649 | 983 | 939 |
Consumer loans, other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 121 | 156 | 187 |
Provision for (Recapture of) Loan Losses | 1 | (28) | (25) |
Charge-offs | (6) | (10) | (8) |
Recoveries | 1 | 3 | 2 |
Allowance for loan losses, Ending Allowance | 117 | 121 | 156 |
Commercial business loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 515 | 482 | 423 |
Provision for (Recapture of) Loan Losses | 42 | 33 | 54 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 5 |
Allowance for loan losses, Ending Allowance | $ 557 | $ 515 | $ 482 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses: Schedule of loans evaluated individually for impairment and collectively evaluated for impairment in the allowance for loan losses (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | $ 97 | $ 476 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 9,433 | 9,077 | ||
Allowance for Loan Losses, Total | 9,530 | 9,553 | $ 9,826 | $ 9,924 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 4,272 | 6,992 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 733,286 | 695,391 | ||
Loans receivable | 737,558 | 702,383 | ||
Mortgage loans, one-to-four family | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 1,086 | 1,082 | ||
Allowance for Loan Losses, Total | 1,086 | 1,082 | 1,239 | 1,480 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 1,054 | 1,443 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 114,887 | 116,704 | ||
Loans receivable | 115,941 | 118,147 | ||
Mortgage loans, multi-family | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 433 | 447 | ||
Allowance for Loan Losses, Total | 433 | 447 | 473 | 392 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 61,928 | 58,607 | ||
Loans receivable | 61,928 | 58,607 | ||
Mortgage loans, commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 26 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 4,248 | 4,158 | ||
Allowance for Loan Losses, Total | 4,248 | 4,184 | 4,384 | 4,065 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 2,446 | 3,873 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 342,667 | 325,054 | ||
Loans receivable | 345,113 | 328,927 | ||
Mortgage loans, construction - custom and owner/builder | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 671 | 699 | ||
Allowance for Loan Losses, Total | 671 | 699 | 619 | 451 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 67,024 | 63,538 | ||
Loans receivable | 67,024 | 63,538 | ||
Mortgage loans, construction - speculative one-to-four family | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 178 | 128 | ||
Allowance for Loan Losses, Total | 178 | 128 | 130 | 123 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 7,107 | 4,639 | ||
Loans receivable | 7,107 | 4,639 | ||
Mortgage loans, construction - commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 563 | 303 | ||
Allowance for Loan Losses, Total | 563 | 303 | 268 | 426 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 23,440 | 11,016 | ||
Loans receivable | 23,440 | 11,016 | ||
Mortgage loans, construction - multi-family | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 135 | 173 | ||
Allowance for Loan Losses, Total | 135 | 173 | 316 | 283 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 5,983 | 6,912 | ||
Loans receivable | 5,983 | 6,912 | ||
Mortgage loans - construction - land development | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | |||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 49 | |||
Allowance for Loan Losses, Total | 49 | 0 | ||
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | |||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 1,567 | |||
Loans receivable | 1,567 | |||
Mortgage loans, land | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 34 | 125 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 810 | 793 | ||
Allowance for Loan Losses, Total | 844 | 918 | 820 | 1,021 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 243 | 1,119 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 25,303 | 22,791 | ||
Loans receivable | 25,546 | 23,910 | ||
Consumer loans, home equity and second mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 325 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 649 | 658 | ||
Allowance for Loan Losses, Total | 649 | 983 | 939 | 1,073 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 359 | 557 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 36,982 | 37,863 | ||
Loans receivable | 37,341 | 38,420 | ||
Consumer loans, other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 117 | 121 | ||
Allowance for Loan Losses, Total | 117 | 121 | 156 | 187 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 3,515 | 3,823 | ||
Loans receivable | 3,515 | 3,823 | ||
Commercial business loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 63 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 494 | 515 | ||
Allowance for Loan Losses, Total | 557 | 515 | $ 482 | $ 423 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 170 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 42,883 | 44,444 | ||
Loans receivable | $ 43,053 | $ 44,444 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses: Past Due Status of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | $ 2,556 | $ 2,413 | |||
Loans receivable, Non-Accrual | 1,317 | [1] | 1,911 | [2] | |
Loans receivable, Current | 735,002 | 699,970 | |||
Loans receivable | 737,558 | 702,383 | |||
30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 1,223 | 395 | |||
60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 16 | 107 | |||
Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, one-to-four family | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 1,102 | 1,067 | |||
Loans receivable, Non-Accrual | 545 | [1] | 874 | [2] | |
Loans receivable, Current | 114,839 | 117,080 | |||
Loans receivable | 115,941 | 118,147 | |||
Mortgage loans, one-to-four family | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 557 | 193 | |||
Mortgage loans, one-to-four family | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, one-to-four family | Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, multi-family | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Loans receivable, Non-Accrual | 0 | [1] | 0 | [2] | |
Loans receivable, Current | 61,928 | 58,607 | |||
Loans receivable | 61,928 | 58,607 | |||
Mortgage loans, multi-family | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, multi-family | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, multi-family | Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, commercial | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 574 | 320 | |||
Loans receivable, Non-Accrual | 0 | [1] | 213 | [2] | |
Loans receivable, Current | 344,539 | 328,607 | |||
Loans receivable | 345,113 | 328,927 | |||
Mortgage loans, commercial | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 574 | 0 | |||
Mortgage loans, commercial | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 107 | |||
Mortgage loans, commercial | Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, construction - custom and owner/builder | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Loans receivable, Non-Accrual | 0 | [1] | 0 | [2] | |
Loans receivable, Current | 67,024 | 63,538 | |||
Loans receivable | 67,024 | 63,538 | |||
Mortgage loans, construction - custom and owner/builder | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, construction - custom and owner/builder | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, construction - custom and owner/builder | Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, construction - speculative one-to-four family | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Loans receivable, Non-Accrual | 0 | [1] | 0 | [2] | |
Loans receivable, Current | 7,107 | 4,639 | |||
Loans receivable | 7,107 | 4,639 | |||
Mortgage loans, construction - speculative one-to-four family | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, construction - speculative one-to-four family | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, construction - speculative one-to-four family | Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, construction - commercial | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Loans receivable, Non-Accrual | 0 | [1] | 0 | [2] | |
Loans receivable, Current | 23,440 | 11,016 | |||
Loans receivable | 23,440 | 11,016 | |||
Mortgage loans, construction - commercial | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, construction - commercial | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, construction - commercial | Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, construction - multi-family | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Loans receivable, Non-Accrual | 0 | [1] | 0 | [2] | |
Loans receivable, Current | 5,983 | 6,912 | |||
Loans receivable | 5,983 | 6,912 | |||
Mortgage loans, construction - multi-family | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, construction - multi-family | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, construction - multi-family | Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans - construction - land development | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | ||||
Loans receivable, Non-Accrual | [1] | 0 | |||
Loans receivable, Current | 1,567 | ||||
Loans receivable | 1,567 | ||||
Mortgage loans - construction - land development | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | ||||
Mortgage loans - construction - land development | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | ||||
Mortgage loans - construction - land development | Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | ||||
Mortgage loans, land | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 283 | 566 | |||
Loans receivable, Non-Accrual | 243 | [1] | 566 | [2] | |
Loans receivable, Current | 25,263 | 23,344 | |||
Loans receivable | 25,546 | 23,910 | |||
Mortgage loans, land | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 40 | 0 | |||
Mortgage loans, land | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Mortgage loans, land | Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Consumer loans, home equity and second mortgage | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 401 | 314 | |||
Loans receivable, Non-Accrual | 359 | [1] | 258 | [2] | |
Loans receivable, Current | 36,940 | 38,106 | |||
Loans receivable | 37,341 | 38,420 | |||
Consumer loans, home equity and second mortgage | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 42 | 56 | |||
Consumer loans, home equity and second mortgage | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Consumer loans, home equity and second mortgage | Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Consumer loans, other | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 26 | 36 | |||
Loans receivable, Non-Accrual | 0 | [1] | 0 | [2] | |
Loans receivable, Current | 3,489 | 3,787 | |||
Loans receivable | 3,515 | 3,823 | |||
Consumer loans, other | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 10 | 36 | |||
Consumer loans, other | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 16 | 0 | |||
Consumer loans, other | Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Commercial business loans | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 170 | 110 | |||
Loans receivable, Non-Accrual | 170 | [1] | 0 | [2] | |
Loans receivable, Current | 42,883 | 44,334 | |||
Loans receivable | 43,053 | 44,444 | |||
Commercial business loans | 30-59 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 110 | |||
Commercial business loans | 60-89 Days Past Due | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | 0 | 0 | |||
Commercial business loans | Past Due 90 Days or More and Still Accruing | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Loans receivable, Total Past Due | $ 0 | $ 0 | |||
[1] | Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual. | ||||
[2] | Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual. |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Loan Losses: Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 737,558 | $ 702,383 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 720,600 | 682,391 |
Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 10,653 | 8,956 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,123 | 7,783 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,182 | 3,253 |
Mortgage loans, one-to-four family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 115,941 | 118,147 |
Mortgage loans, one-to-four family | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 113,148 | 115,481 |
Mortgage loans, one-to-four family | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 882 | 422 |
Mortgage loans, one-to-four family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 581 | 644 |
Mortgage loans, one-to-four family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,330 | 1,600 |
Mortgage loans, multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 61,928 | 58,607 |
Mortgage loans, multi-family | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 61,928 | 56,857 |
Mortgage loans, multi-family | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, multi-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 1,750 |
Mortgage loans, multi-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 345,113 | 328,927 |
Mortgage loans, commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 334,908 | 318,717 |
Mortgage loans, commercial | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 8,375 | 6,059 |
Mortgage loans, commercial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 988 | 3,540 |
Mortgage loans, commercial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 842 | 611 |
Mortgage loans, construction - custom and owner/builder | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 67,024 | 63,538 |
Mortgage loans, construction - custom and owner/builder | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 66,720 | 63,210 |
Mortgage loans, construction - custom and owner/builder | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 304 | 328 |
Mortgage loans, construction - custom and owner/builder | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - custom and owner/builder | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - speculative one-to-four family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 7,107 | 4,639 |
Mortgage loans, construction - speculative one-to-four family | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 7,107 | 4,639 |
Mortgage loans, construction - speculative one-to-four family | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - speculative one-to-four family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - speculative one-to-four family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 23,440 | 11,016 |
Mortgage loans, construction - commercial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 23,440 | 11,016 |
Mortgage loans, construction - commercial | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - commercial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - commercial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 5,983 | 6,912 |
Mortgage loans, construction - multi-family | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 5,983 | 6,912 |
Mortgage loans, construction - multi-family | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - multi-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - multi-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans - construction - land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,567 | |
Mortgage loans - construction - land development | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,567 | |
Mortgage loans - construction - land development | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | |
Mortgage loans - construction - land development | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | |
Mortgage loans - construction - land development | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | |
Mortgage loans, land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 25,546 | 23,910 |
Mortgage loans, land | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 22,810 | 20,528 |
Mortgage loans, land | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 988 | 1,022 |
Mortgage loans, land | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,505 | 1,794 |
Mortgage loans, land | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 243 | 566 |
Consumer loans, home equity and second mortgage | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 37,341 | 38,420 |
Consumer loans, home equity and second mortgage | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 36,697 | 37,828 |
Consumer loans, home equity and second mortgage | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 82 | 152 |
Consumer loans, home equity and second mortgage | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer loans, home equity and second mortgage | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 562 | 440 |
Consumer loans, other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,515 | 3,823 |
Consumer loans, other | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,480 | 3,787 |
Consumer loans, other | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer loans, other | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer loans, other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 35 | 36 |
Commercial business loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 43,053 | 44,444 |
Commercial business loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 42,812 | 43,416 |
Commercial business loans | Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 22 | 973 |
Commercial business loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 49 | 55 |
Commercial business loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 170 | $ 0 |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Loan Losses: Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 3,949 | $ 3,830 | $ 9,942 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 323 | 3,162 | 6,295 |
Impaired Financing Receivable, Recorded Investment | 4,272 | 6,992 | 16,237 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 4,200 | 4,089 | 11,806 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 323 | 3,221 | 6,295 |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 4,523 | 7,310 | 18,101 |
Impaired Financing Receivable, Related Allowance | 97 | 476 | 776 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 4,304 | 5,963 | 10,476 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,603 | 5,260 | 8,103 |
Impaired Financing Receivable, Average Recorded Investment | 5,907 | 11,223 | 18,579 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 215 | 271 | 475 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 53 | 296 | 478 |
Impaired Financing Receivable, Interest Income Recognized | 268 | 567 | 953 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 175 | 218 | 380 |
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 42 | 237 | 378 |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 217 | 455 | 758 |
Mortgage loans, one-to-four family | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,054 | 1,443 | 914 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 | 1,350 |
Impaired Financing Receivable, Recorded Investment | 1,054 | 1,443 | 2,264 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 1,200 | 1,589 | 1,060 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | 0 | 1,350 |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 1,200 | 1,589 | 2,410 |
Impaired Financing Receivable, Related Allowance | 0 | 0 | 70 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,422 | 1,108 | 1,349 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 9 | 721 | 1,921 |
Impaired Financing Receivable, Average Recorded Investment | 1,431 | 1,829 | 3,270 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 80 | 68 | 38 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 50 | 118 |
Impaired Financing Receivable, Interest Income Recognized | 80 | 118 | 156 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 69 | 62 | 38 |
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 0 | 38 | 89 |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 69 | 100 | 127 |
Mortgage loans, multi-family | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | ||
Impaired Financing Receivable, Recorded Investment | 0 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | ||
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | ||
Impaired Financing Receivable, Related Allowance | 0 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 152 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 655 | ||
Impaired Financing Receivable, Average Recorded Investment | 807 | ||
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 0 | ||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | ||
Impaired Financing Receivable, Interest Income Recognized | 0 | ||
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 0 | ||
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 0 | ||
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 0 | ||
Mortgage loans, commercial | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,446 | 1,967 | 7,566 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 1,906 | 3,743 |
Impaired Financing Receivable, Recorded Investment | 2,446 | 3,873 | 11,309 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 2,446 | 1,967 | 8,685 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | 1,906 | 3,743 |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 2,446 | 3,873 | 12,428 |
Impaired Financing Receivable, Related Allowance | 0 | 26 | 413 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,389 | 3,901 | 7,784 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 760 | 3,326 | 4,181 |
Impaired Financing Receivable, Average Recorded Investment | 3,149 | 7,227 | 11,965 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 121 | 188 | 421 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 28 | 182 | 275 |
Impaired Financing Receivable, Interest Income Recognized | 149 | 370 | 696 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 93 | 143 | 330 |
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 21 | 144 | 215 |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 114 | 287 | 545 |
Mortgage loans, construction - custom and owner/builder | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | 367 | |
Impaired Financing Receivable, Recorded Investment | 0 | 367 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | 367 | |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | 367 | |
Impaired Financing Receivable, Related Allowance | 0 | 0 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 147 | 73 | |
Impaired Financing Receivable, Average Recorded Investment | 147 | 73 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 7 | 0 | |
Impaired Financing Receivable, Interest Income Recognized | 7 | 0 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 7 | 0 | |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 7 | 0 | |
Mortgage loans, land | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 90 | 297 | 693 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 153 | 822 | 575 |
Impaired Financing Receivable, Recorded Investment | 243 | 1,119 | 1,268 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 195 | 410 | 1,101 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 153 | 881 | 575 |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 348 | 1,291 | 1,676 |
Impaired Financing Receivable, Related Allowance | 34 | 125 | 53 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 283 | 512 | 839 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 383 | 666 | 604 |
Impaired Financing Receivable, Average Recorded Investment | 666 | 1,178 | 1,443 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 11 | 8 | 16 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 9 | 35 | 39 |
Impaired Financing Receivable, Interest Income Recognized | 20 | 43 | 55 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 10 | 6 | 12 |
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 8 | 29 | 32 |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 18 | 35 | 44 |
Consumer loans, home equity and second mortgage | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 359 | 123 | 402 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 434 | 597 |
Impaired Financing Receivable, Recorded Investment | 359 | 557 | 999 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 359 | 123 | 593 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | 434 | 597 |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 359 | 557 | 1,190 |
Impaired Financing Receivable, Related Allowance | 0 | 325 | 227 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 210 | 284 | 264 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 310 | 530 | 709 |
Impaired Financing Receivable, Average Recorded Investment | 520 | 814 | 973 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 3 | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 16 | 29 | 44 |
Impaired Financing Receivable, Interest Income Recognized | 19 | 29 | 44 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 3 | 0 | 0 |
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 13 | 26 | 40 |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 16 | 26 | 40 |
Consumer loans, other | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 30 | |
Impaired Financing Receivable, Recorded Investment | 0 | 30 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | 30 | |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | 30 | |
Impaired Financing Receivable, Related Allowance | 0 | 13 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 17 | 33 | |
Impaired Financing Receivable, Average Recorded Investment | 17 | 33 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 2 | |
Impaired Financing Receivable, Interest Income Recognized | 0 | 2 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 0 | 2 | |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 0 | 2 | |
Commercial business loans | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | 0 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 170 | ||
Impaired Financing Receivable, Recorded Investment | 170 | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | 0 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 170 | ||
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 170 | 0 | 0 |
Impaired Financing Receivable, Related Allowance | 63 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 11 | 15 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 141 | ||
Impaired Financing Receivable, Average Recorded Investment | 141 | 11 | 15 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 0 | 0 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | ||
Impaired Financing Receivable, Interest Income Recognized | 0 | 0 | 0 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 0 | 0 | |
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 0 | ||
Impaired Financing Receivable, Cash Basis Interest Income Recognized | $ 0 | $ 0 | $ 0 |
Loans Receivable and Allowan_12
Loans Receivable and Allowance for Loan Losses Loans Receivable and Allowance for Loan Losses: Summary of TDR Loans (Details) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 |
Financing Receivable, Modifications [Line Items] | ||
TDR loans included in impaired loans | $ 3,278,000 | $ 3,595,000 |
TDR Loans, commitment to lend additional funds | 0 | 0 |
Allowance for loan losses | 9,530,000 | 9,553,000 |
Troubled Debt Restructured Loans | ||
Financing Receivable, Modifications [Line Items] | ||
Allowance for loan losses | $ 97,000 | $ 10,000 |
Loans Receivable and Allowan_13
Loans Receivable and Allowance for Loan Losses Loans Receivable and Allowance for Loan Losses: Schedule of Troubled Debt Restructured Loans (Details) | 12 Months Ended | ||
Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2016USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | $ 3,278,000 | $ 3,595,000 | |
Troubled debt restructured loan, subsequent default, number of contracts | contract | 0 | 0 | 0 |
Troubled debt restructured loan, subsequent default, recorded investment | $ 0 | $ 0 | $ 0 |
Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | $ 323,000 | ||
Number of Contracts | contract | 3 | ||
Pre-Modification Outstanding Recorded Investment | $ 427,000 | ||
Post- Modification Outstanding Recorded Investment | 338,000 | ||
Mortgage loans, land | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 153,000 | 807,000 | |
Mortgage loans, land | Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | $ 153,000 | ||
Number of Contracts | contract | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 244,000 | ||
Post- Modification Outstanding Recorded Investment | 155,000 | ||
Commercial business loans | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 170,000 | ||
Commercial business loans | Portfolio Segment | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | $ 170,000 | ||
Number of Contracts | contract | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 183,000 | ||
Post- Modification Outstanding Recorded Investment | 183,000 | ||
Mortgage loans, one-to-four family | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 509,000 | 569,000 | |
Mortgage loans, commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 2,446,000 | 2,219,000 | |
Accruing | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 2,955,000 | 3,342,000 | |
Accruing | Mortgage loans, land | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 0 | 554,000 | |
Accruing | Commercial business loans | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 0 | ||
Accruing | Mortgage loans, one-to-four family | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 509,000 | 569,000 | |
Accruing | Mortgage loans, commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 2,446,000 | 2,219,000 | |
Non- Accrual | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 323,000 | 253,000 | |
Non- Accrual | Mortgage loans, land | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 153,000 | 253,000 | |
Non- Accrual | Commercial business loans | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 170,000 | ||
Non- Accrual | Mortgage loans, one-to-four family | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | 0 | 0 | |
Non- Accrual | Mortgage loans, commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Troubled debt restructured loan | $ 0 | $ 0 |
Premises and Equipment_ Propert
Premises and Equipment: Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 33,757 | $ 32,782 |
Less accumulated depreciation | 14,804 | 14,364 |
Premises and equipment, net | 18,953 | 18,418 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 4,400 | 4,402 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 20,636 | 20,167 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 8,026 | 7,935 |
Property held for future expansion | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 129 | 129 |
Construction and purchases in progress | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 566 | $ 149 |
Premises and Equipment_ Rent Ex
Premises and Equipment: Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Operating leases, rent expense | $ 206 | $ 275 | $ 287 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Operating leases, renewal term | 5 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Operating leases, renewal term | 10 years |
Premises and Equipment_ Minimum
Premises and Equipment: Minimum Net Rental Commitments Under Non-cancellable Leases (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Property, Plant and Equipment [Abstract] | |
2,019 | $ 201 |
2,020 | 165 |
2,021 | 124 |
Total minimum payments required | $ 490 |
OREO and Other Repossessed As_3
OREO and Other Repossessed Assets: Other Real Estate, Roll Forward (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018USD ($)property | Sep. 30, 2017USD ($)property | Sep. 30, 2016USD ($)property | |
OREO and Other Repossessed Assets | |||
OREO and Other Repossessed Assets, Amount, Starting Balance | $ 3,301 | $ 4,117 | |
Additions to OREO and other repossessed assets, amount | 324 | 751 | |
Writedowns, amount | (248) | (42) | |
Sales of OREO and other repossessed assets, amount | (1,464) | (1,525) | |
OREO and Other Repossessed Assets, Amount, Ending Balance | $ 1,913 | $ 3,301 | $ 4,117 |
Other Real Estate, Number Of Contracts [Roll Forward] | |||
OREO and Other Repossessed Assets, Number, Starting Balance | property | 16 | 23 | |
Additions to OREO and other repossessed assets, number | 2 | 4 | 142 |
Writedowns, number | property | 0 | 0 | |
Sales of OREO and other repossessed assets, number | property | (6) | (11) | |
OREO and Other Repossessed Assets, Number, Ending Balance | property | 12 | 16 | 23 |
OREO and Other Repossessed As_4
OREO and Other Repossessed Assets: Narrative (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018USD ($)property | Sep. 30, 2017USD ($)property | Sep. 30, 2016USD ($) | |
Real Estate Properties [Line Items] | |||
Other real estate owned (“OREO”) and other repossessed assets, net | $ 1,913 | $ 3,301 | $ 4,117 |
(Gain) loss on sales of OREO and other repossessed assets, net | $ 229 | 54 | $ 47 |
Recorded amount of foreclosed residential real estate properties held in OREO | 875 | ||
Mortgage loans, one-to-four family | |||
Real Estate Properties [Line Items] | |||
Recorded amount of foreclosed residential real estate properties held in OREO | $ 100 | ||
Washington | |||
Real Estate Properties [Line Items] | |||
OREO, number of repossessed assets | property | 12 | 15 | |
Number of other repossessed assets | property | 0 | 1 | |
Washington | Minimum | |||
Real Estate Properties [Line Items] | |||
Other real estate owned (“OREO”) and other repossessed assets, net | $ 13 | $ 13 | |
Washington | Maximum | |||
Real Estate Properties [Line Items] | |||
Other real estate owned (“OREO”) and other repossessed assets, net | $ 874 | $ 948 |
MSRs_ Summary of Loans serviced
MSRs: Summary of Loans serviced for Freddie Mac (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Transfers and Servicing [Abstract] | |||
Loans serviced for Freddie Mac, Principal amount | $ 370,928 | $ 358,173 | $ 340,308 |
Loans serviced for SBA, Principal amount | $ 754 | $ 697 | $ 319 |
MSRs_ Analysis of the changes i
MSRs: Analysis of the changes in MSRs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Balance, beginning of year | $ 1,825 | $ 1,573 | $ 1,478 |
Additions | 694 | 739 | 650 |
Amortization | (491) | (487) | (555) |
Balance, end of year | $ 2,028 | $ 1,825 | $ 1,573 |
MSRs_ Summary of Fair Values (D
MSRs: Summary of Fair Values (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Transfers and Servicing [Abstract] | |||
Mortgage Servicing Rights (MSR), Fair Value | $ 4,171,000 | $ 3,556,000 | $ 2,865,000 |
Mortgage Servicing Rights (MSR), Average Discount Rate for estimating Fair Value | 8.99% | 9.52% | 9.52% |
Mortgage Servicing Rights (MSR), Average Prepayment Speed Factor for estimating Fair Value | 132 | 159 | 209 |
MSRs valuation allowances | $ 0 | $ 0 | $ 0 |
Deposits_ Schedule of Deposits
Deposits: Schedule of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Deposits [Abstract] | ||
Non-interest-bearing demand | $ 233,258 | $ 205,952 |
NOW checking | 225,290 | 220,315 |
Savings | 151,404 | 140,987 |
Money market | 137,746 | 131,002 |
Certificates of deposit | 141,808 | 139,642 |
Total deposits | $ 889,506 | $ 837,898 |
Deposits_ Narrative (Details)
Deposits: Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Deposits [Abstract] | ||
Time Deposits, $250,000 Or More | $ 18,164 | $ 15,601 |
Brokered deposits | $ 17,202 | $ 15,642 |
Deposits_ Scheduled maturities
Deposits: Scheduled maturities of certificates of deposit for future years (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Deposits [Abstract] | |
2,019 | $ 76,157 |
2,020 | 32,004 |
2,021 | 14,412 |
2,022 | 11,991 |
2,023 | 7,244 |
Total | $ 141,808 |
Deposits_ Schedule of Interest
Deposits: Schedule of Interest Expense on Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Deposits [Abstract] | |||
NOW checking | $ 451 | $ 460 | $ 456 |
Savings | 85 | 78 | 64 |
Money market | 722 | 434 | 327 |
Certificates of deposit | 1,520 | 1,246 | 1,194 |
Total | $ 2,778 | $ 2,218 | $ 2,041 |
FHLB Borrowings and Other Bor_2
FHLB Borrowings and Other Borrowings (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB borrowings, ratio of maximum borrowing capacity to total assets | 45.00% | |
Pacific Coast Banker's Bank | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Short-term overnight borrowings, maximum borrowing capacity | $ 10,000,000 | |
Overnight line of credit, amount outstanding | 0 | $ 0 |
Federal Home Loan Bank Advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Short-term FHLB borrowings, maximum borrowing capacity | 76,703,000 | |
Short-term FHLB advances | 0 | 0 |
Federal Home Loan Bank Advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Long-term FHLB advances | 0 | $ 0 |
Long-term FHLB borrowings, prepayment penalty | 282,000 | |
Long-term FHLB borrowings, outstanding amount repaid | 15,000,000,000,000 | |
Line of Credit | Letter of Credit | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Short-term overnight borrowings, maximum borrowing capacity | $ 23,000,000 |
Other Liabilities and Accrued_3
Other Liabilities and Accrued Expenses: Schedule of Other Liabilities and Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Payables and Accruals [Abstract] | ||
Accrued deferred compensation, profit sharing plans and bonuses payable | $ 1,235 | $ 1,134 |
Accrued interest payable on deposits | 225 | 161 |
Accounts payable and accrued expenses - other | 2,667 | 1,831 |
Total other liabilities and accrued expenses | $ 4,127 | $ 3,126 |
Federal Income Taxes_ Schedule
Federal Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal | $ 4,900 | $ 6,656 | $ 4,618 | ||||||||
State | 4 | 35 | 0 | ||||||||
Deferred | 797 | 385 | 283 | ||||||||
Provision for income taxes | $ 1,370 | $ 1,334 | $ 1,216 | $ 1,781 | $ 1,748 | $ 2,188 | $ 1,568 | $ 1,572 | $ 5,701 | $ 7,076 | $ 4,901 |
Federal Income Taxes_ Narrative
Federal Income Taxes: Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Contingency [Line Items] | |||||||||||
Effective tax rate | 24.50% | ||||||||||
Change in tax rate, income tax expense (benefit) | $ 2,210,000 | ||||||||||
Provision for income taxes | $ 1,370,000 | $ 1,334,000 | $ 1,216,000 | $ 1,781,000 | $ 1,748,000 | $ 2,188,000 | $ 1,568,000 | $ 1,572,000 | 5,701,000 | $ 7,076,000 | $ 4,901,000 |
Income taxes receivable | 151,000 | 559,000 | 151,000 | 559,000 | |||||||
Deferred tax assets, valuation allowance | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Deferred Tax Asset | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Provision for income taxes | $ 548,000 |
Federal Income Taxes_ Schedul_2
Federal Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred Tax Assets | ||
Allowance for loan losses | $ 2,021 | $ 3,380 |
Allowance for OREO losses | 311 | 443 |
Unearned ESOP shares | 32 | 148 |
Core deposit intangible | 31 | 103 |
OTTI credit impairment on investment securities | 104 | 173 |
Accrued interest on loans | 10 | 29 |
Net unrealized losses on investment securities | 42 | 66 |
Deferred compensation and bonuses | 56 | 94 |
Reserve for loan commitments | 43 | 75 |
Other | 29 | 39 |
Total deferred tax assets | 2,679 | 4,550 |
Deferred Tax Liabilities | ||
Goodwill | 1,107 | 1,714 |
MSRs | 426 | 639 |
Depreciation | 283 | 480 |
Loan fees/costs | 121 | 0 |
FHLB stock dividends | 82 | 137 |
Prepaid expenses | 74 | 140 |
Other | 2 | 35 |
Total deferred tax liabilities | 2,095 | 3,145 |
Net deferred tax assets | $ 584 | $ 1,405 |
Federal Income Taxes_ Schedul_3
Federal Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Expected federal income tax provision at statutory rate | $ 5,500 | $ 7,435 | $ 5,160 | ||||||||
Net impact of the Tax Act | 548 | 0 | 0 | ||||||||
BOLI income | (134) | (191) | (189) | ||||||||
Dividends on ESOP | (71) | (102) | (83) | ||||||||
Stock options tax effect | (157) | (188) | 0 | ||||||||
Other, net | 15 | 122 | 13 | ||||||||
Provision for income taxes | $ 1,370 | $ 1,334 | $ 1,216 | $ 1,781 | $ 1,748 | $ 2,188 | $ 1,568 | $ 1,572 | $ 5,701 | $ 7,076 | $ 4,901 |
Employee Stock Ownership and _3
Employee Stock Ownership and 401(k) Plan: Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | 108 Months Ended | ||
Jan. 31, 1998USD ($)shares | Sep. 30, 2018USD ($)component | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($)shares | |
401(k) | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
401(k), employer safe harbor contribution (as a percent) | 3.00% | ||||
401(k), employer contributions | $ 379 | $ 358 | $ 333 | ||
KSOP | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Number of components in KSOP | component | 2 | ||||
Required service period (in years) | 1 year | ||||
Employee minimum age requirement (in years) | 21 years | ||||
Award vesting period (in years) | 6 years | ||||
ESOP | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
ESOP, loan borrowed from employer | $ 7,930 | ||||
ESOP, shares purchased for plan (in shares) | shares | 1,058,000 | ||||
ESOP, interest rate on employer loan (as a percent) | 8.50% | ||||
ESOP, interest expense on employer loan | $ 53 | 96 | 136 | ||
ESOP, amount outstanding on employer loan | 285 | ||||
Dividends used for debt service | 291 | 293 | 243 | ||
ESOP, shares distributed to participants (in shares) | shares | 588,717 | ||||
ESOP, fair value of unallocated shares | 551 | 1,658 | 1,389 | $ 1,389 | |
Earned ESOP shares | $ 823 | $ 495 | $ 233 |
Employee Stock Ownership and _4
Employee Stock Ownership and 401(k) Plan: Schedule of Shares held by the ESOP (Details) - shares shares in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Retirement Benefits [Abstract] | |||
Unallocated shares (shares) | 17,639 | 52,905 | 88,171 |
Shares released for allocation (shares) | 451,644 | 489,665 | 535,927 |
Total ESOP shares (shares) | 469,283 | 542,570 | 624,098 |
Stock Compensation Plans_ Narra
Stock Compensation Plans: Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Jan. 27, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate intrinsic value of options exercised | $ 894 | $ 659 | ||
Share-based compensation, nonvested awards, future recognition of compensation cost, Stock Options | $ 521 | |||
Unrecognized compensation cost, weighted average period for recognition (in years) | 2 years 5 months 16 days | |||
2014 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 352,366 | |||
Number of shares available for grant (in shares) | 71,416 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 300,000 | |||
Award vesting percentage (as a percent) | 20.00% | |||
Award vesting period (in years) | 5 years | |||
Expiration period (in years) | 10 years | |||
Stock options granted during period (in shares) | 45,950 | 58,250 | 55,750 | |
Stock options, aggregate grant date fair value | $ 206 | $ 224 | $ 81 | |
Stock options vested during period (in shares) | 76,450 | 69,800 | 65,100 | |
Stock options vested during period, aggregate grant date fair value | $ 181 | $ 145 | $ 144 | |
Number of unvested stock options (in shares) | 196,750 | 231,850 | ||
Unvested stock awards, aggregate grant date fair value | $ 582 | $ 569 | ||
Unvested stock options, aggregate intrinsic value | 2,098 | |||
Stock options, outstanding, aggregate intrinsic value | $ 5,813 | $ 6,882 | $ 2,212 | |
MRDP Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage (as a percent) | 20.00% | |||
Award vesting period (in years) | 5 years | |||
Expiration period (in years) | 10 years | |||
Number of unvested stock awards (in shares) | 0 | 0 | ||
Stock Grants | MRDP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock awards, granted during period (in shares) | 0 | 0 | 0 |
Stock Compensation Plans_ Stock
Stock Compensation Plans: Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Number of Shares | |||
Options outstanding, beginning of period (in shares) | 380,120 | 373,130 | 341,300 |
Options granted (in shares) | 45,950 | 58,250 | 55,750 |
Options exercised (in shares) | (40,100) | (46,310) | (21,020) |
Options forfeited (in shares) | (5,150) | (4,950) | (2,900) |
Options outstanding, end of period (in shares) | 380,820 | 380,120 | 373,130 |
Weighted Average Exercise Price | |||
Options outstanding, beginning of period (in dollars per share) | $ 13.23 | $ 9.82 | $ 8.73 |
Options granted (in dollars per share) | 31.80 | 29.69 | 15.67 |
Options exercised (in dollars per share) | 7.92 | 7.17 | 7.56 |
Options forfeited (in dollars per share) | 13.39 | 6.28 | 9.96 |
Options outstanding, end of period (in dollars per share) | $ 16.03 | $ 13.23 | $ 9.82 |
Stock Compensation Plans_ Fair
Stock Compensation Plans: Fair Value Assumptions (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (as a percent) | 17.00% | 16.00% | 16.00% |
Expected life (in years) | 5 years | 5 years | 5 years |
Expected dividend yield (as a percent) | 2.61% | 1.85% | 3.00% |
Risk free interest rate (as a percent) | 2.97% | 1.89% | 1.12% |
Grant date fair value per share (in dollars per share) | $ 4.476 | $ 3.84 | $ 1.46 |
Stock Compensation Plans_ Sto_2
Stock Compensation Plans: Stock Options by Exercise Price (Details) - Stock Options | 12 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 380,820 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 16.03 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 7 years 12 days |
Options Exercisable, Number (in shares) | shares | 184,070 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 11.04 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 5 years 11 months 12 days |
$ 4.01 - 4.55 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 2,500 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 4.23 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 2 years 3 months 30 days |
Options Exercisable, Number (in shares) | shares | 2,500 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 4.23 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 2 years 3 months 30 days |
Exercise price range, lower range limit (in dollars per share) | $ 4.01 |
Exercise price range, upper range limit (in dollars per share) | $ 4.01 |
5.86 - 6.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 28,550 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 5.96 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 21 days |
Options Exercisable, Number (in shares) | shares | 28,550 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 5.96 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 4 years 21 days |
Exercise price range, lower range limit (in dollars per share) | $ 5.86 |
Exercise price range, upper range limit (in dollars per share) | $ 5.86 |
9 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 72,800 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 9 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 30 days |
Options Exercisable, Number (in shares) | shares | 54,600 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 9 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 5 years 30 days |
Exercise price range, lower range limit (in dollars per share) | $ 9 |
10.26 - 10.71 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 121,320 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 10.58 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 6 years 6 months 15 days |
Options Exercisable, Number (in shares) | shares | 67,420 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 10.56 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 6 years 5 months 24 days |
Exercise price range, lower range limit (in dollars per share) | $ 10.26 |
Exercise price range, upper range limit (in dollars per share) | $ 10.26 |
15.67 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 52,200 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 15.67 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 8 years |
Options Exercisable, Number (in shares) | shares | 19,500 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 15.67 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 8 years |
Exercise price range, lower range limit (in dollars per share) | $ 15.67 |
29.69 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 57,500 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 29.69 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 9 years |
Options Exercisable, Number (in shares) | shares | 11,500 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 29.69 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 9 years |
Exercise price range, lower range limit (in dollars per share) | $ 29.69 |
31.80 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 45,950 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 31.80 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 10 years |
Options Exercisable, Number (in shares) | shares | 0 |
Exercise price range, lower range limit (in dollars per share) | $ 31.8 |
Commitments and Contingencies_
Commitments and Contingencies: Supply Commitment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Undisbursed portion of construction loans in process | $ 83,237 | $ 82,411 |
Undisbursed lines of credit | 49,525 | 51,420 |
Commitments to extend credit | $ 17,665 | $ 19,673 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Reserve for unfunded loan commitments | $ 207 | $ 214 |
Employee severance compensation plan, employee minimum service requirement (in years) | 2 years | |
Employee severance compensation plan, period following effective date of a change in company control (in months) | 12 months | |
Employee severance compensation plan, eligible payment, maximum compensation term (in months) | 18 months | |
Employee severance compensation plan, annual compensation multiplier | 2.99 | |
Employee severance compensation plan, period following effective date of change in control for eligible severance benefits (in years) | 5 years |
Regulatory Matters_ Schedule of
Regulatory Matters: Schedule of Compliance with Regulatory Capital Requirements for Mortgage Companies (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Timberland Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Leverage Capital, Actual Amount | $ 117,336 | $ 104,102 |
Tier 1 Leverage Capital, Actual Ratio | 11.70% | 11.20% |
Tier 1 Leverage Capital, Regulatory Minimum To Be Adequately Capitalized, Amount | $ 40,024 | $ 37,116 |
Tier 1 Leverage Capital, Regulatory Minimum To Be Adequately Capitalized, Ratio | 4.00% | 4.00% |
Tier 1 Leverage Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 50,031 | $ 46,395 |
Tier 1 Leverage Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Tier 1 Risk-based Capital Ratio, Common Equity, Actual Amount | $ 117,336 | $ 104,102 |
Tier 1 Risk-based Capital Ratio, Common Equity, Actual Ratio | 16.70% | 15.90% |
Tier 1 Risk-based Capital Ratio, Regulatory Minimum To Be Adequately Capitalized, Amount | $ 31,539 | $ 29,547 |
Tier 1 Risk-based Capital Ratio, Regulatory Minimum To Be Adequately Capitalized, Ratio | 4.50% | 4.50% |
Tier 1 Risk-based Capital Ratio, Regulatory Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 45,557 | $ 42,678 |
Tier 1 Risk-based Capital Ratio, Regulatory Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Risk-based Capital, Actual Amount | $ 117,336 | $ 104,102 |
Tier 1 Risk-based Capital, Actual Ratio | 16.70% | 15.90% |
Tier 1 Risk-based Capital, Regulatory Minimum To Be Adequately Capitalized, Amount | $ 42,052 | $ 39,395 |
Tier 1 Risk-based Capital, Regulatory Minimum To Be Adequately Capitalized, Ratio | 6.00% | 6.00% |
Tier 1 Risk-based Capital, Regulatory Minimum To Be Well Capitalized, Amount | $ 56,070 | $ 52,527 |
Tier 1 Risk-based Capital, Regulatory Minimum To Be Well Capitalized, Ratio | 8.00% | 8.00% |
Total Capital, Actual Amount | $ 126,109 | $ 112,329 |
Total Capital, Actual Ratio | 18.00% | 17.10% |
Total Capital, Regulatory Minimum To Be Adequately Capitalized, Amount | $ 56,070 | $ 52,527 |
Total Capital, Regulatory Minimum To Be Adequately Capitalized, Ratio | 8.00% | 8.00% |
Total Capital, Regulatory Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 70,087 | $ 65,659 |
Total Capital, Regulatory Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Timberland Bancorp | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Leverage Capital, Actual Amount | $ 120,175 | $ 107,145 |
Tier 1 Leverage Capital, Actual Ratio | 12.00% | 11.50% |
Tier 1 Risk-based Capital Ratio, Common Equity, Actual Amount | $ 120,175 | $ 107,145 |
Tier 1 Risk-based Capital Ratio, Common Equity, Actual Ratio | 17.10% | 16.30% |
Tier 1 Risk-based Capital, Actual Amount | $ 120,175 | $ 107,145 |
Tier 1 Risk-based Capital, Actual Ratio | 17.10% | 16.30% |
Total Capital, Actual Amount | $ 128,955 | $ 115,376 |
Total Capital, Actual Ratio | 18.40% | 17.60% |
Regulatory Matters Regulatory M
Regulatory Matters Regulatory Matters: Narrative (Details) - Timberland Bank | Sep. 30, 2018 | Sep. 30, 2017 |
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||
Tier 1 Risk-based Capital Ratio, Regulatory Minimum To Be Adequately Capitalized, Ratio | 4.50% | 4.50% |
Tier 1 Risk-based Capital, Regulatory Minimum To Be Adequately Capitalized, Ratio | 6.00% | 6.00% |
Total Capital, Regulatory Minimum To Be Adequately Capitalized, Ratio | 8.00% | 8.00% |
Tier 1 Leverage Capital, Regulatory Minimum To Be Adequately Capitalized, Ratio | 4.00% | 4.00% |
Condensed Financial Informati_3
Condensed Financial Information - Parent Company Only: Condensed Balance Sheets, Parent Company (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Cash and cash equivalents: | ||||
Cash and due from financial institutions | $ 20,238 | $ 17,447 | ||
Interest-bearing deposits in banks | 128,626 | 130,741 | ||
Total cash and cash equivalents | 148,864 | 148,188 | $ 108,941 | $ 92,289 |
Other assets | 2,672 | 3,372 | ||
Total assets | 1,018,290 | 952,024 | ||
Liabilities and shareholders’ equity | ||||
Shareholders’ equity | 124,657 | 111,000 | 96,834 | 89,187 |
Total liabilities and shareholders’ equity | 1,018,290 | 952,024 | ||
Parent Company | ||||
Cash and cash equivalents: | ||||
Cash and due from financial institutions | 306 | 485 | ||
Interest-bearing deposits in banks | 2,588 | 1,797 | ||
Total cash and cash equivalents | 2,894 | 2,282 | $ 1,307 | $ 1,250 |
Loan receivable from ESOP | 285 | 821 | ||
Investment in Bank | 121,818 | 107,957 | ||
Other assets | 15 | 14 | ||
Total assets | 125,012 | 111,074 | ||
Liabilities and shareholders’ equity | ||||
Accrued expenses | 355 | 74 | ||
Shareholders’ equity | 124,657 | 111,000 | ||
Total liabilities and shareholders’ equity | $ 125,012 | $ 111,074 |
Condensed Financial Informati_4
Condensed Financial Information - Parent Company Only: Condensed Statements of Operations, Parent Company (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating income | |||||||||||
Interest on deposits in banks | $ 3,198 | $ 1,586 | $ 902 | ||||||||
Operating expenses | 1,192 | 1,074 | 912 | ||||||||
Income before income taxes and equity in undistributed income of Bank | 22,422 | 21,243 | 15,055 | ||||||||
Benefit for income taxes | $ 1,370 | $ 1,334 | $ 1,216 | $ 1,781 | $ 1,748 | $ 2,188 | $ 1,568 | $ 1,572 | 5,701 | 7,076 | 4,901 |
Net income | $ 4,422 | $ 4,416 | $ 4,269 | $ 3,614 | $ 3,615 | $ 4,277 | $ 3,128 | $ 3,147 | 16,721 | 14,167 | 10,154 |
Parent Company | |||||||||||
Operating income | |||||||||||
Interest on deposits in banks | 37 | 27 | 3 | ||||||||
Interest on loan receivable from ESOP | 53 | 96 | 136 | ||||||||
Dividends from Bank | 4,429 | 1,390 | 3,039 | ||||||||
Total operating income | 4,519 | 1,513 | 3,178 | ||||||||
Operating expenses | 591 | 467 | 430 | ||||||||
Income before income taxes and equity in undistributed income of Bank | 3,928 | 1,046 | 2,748 | ||||||||
Benefit for income taxes | (198) | (385) | (183) | ||||||||
Income before undistributed income of Bank | 4,126 | 1,431 | 2,931 | ||||||||
Equity in undistributed income of Bank | 12,595 | 12,736 | 7,223 | ||||||||
Net income | $ 16,721 | $ 14,167 | $ 10,154 |
Condensed Financial Informati_5
Condensed Financial Information - Parent Company Only: Condensed Statements of Cash Flows, Parent Company (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | |||||||||||
Net income | $ 4,422 | $ 4,416 | $ 4,269 | $ 3,614 | $ 3,615 | $ 4,277 | $ 3,128 | $ 3,147 | $ 16,721 | $ 14,167 | $ 10,154 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Stock option compensation expense | 172 | 156 | 190 | ||||||||
Net cash provided by operating activities | 21,450 | 13,859 | 11,817 | ||||||||
Cash flows from investing activities | |||||||||||
Net cash used in investing activities | (68,269) | (20,163) | (59,548) | ||||||||
Cash flows from financing activities | |||||||||||
Proceeds from exercise of stock warrant | 0 | 2,496 | 0 | ||||||||
Repurchase of common stock | 0 | 0 | (820) | ||||||||
Payment of dividends | (4,431) | (3,641) | (2,578) | ||||||||
Net cash provided by financing activities | 47,495 | 45,551 | 64,383 | ||||||||
Net increase in cash and cash equivalents | 676 | 39,247 | 16,652 | ||||||||
Cash and cash equivalents: | |||||||||||
Beginning of period | 148,188 | 108,941 | 148,188 | 108,941 | 92,289 | ||||||
End of period | 148,864 | 148,188 | 148,864 | 148,188 | 108,941 | ||||||
Parent Company | |||||||||||
Cash flows from operating activities | |||||||||||
Net income | 16,721 | 14,167 | 10,154 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed income of Bank | (12,595) | (12,736) | (7,223) | ||||||||
Earned ESOP shares | 882 | 605 | 404 | ||||||||
Stock option compensation expense | 172 | 156 | 190 | ||||||||
Other, net | 280 | 33 | (65) | ||||||||
Net cash provided by operating activities | 5,460 | 2,225 | 3,460 | ||||||||
Cash flows from investing activities | |||||||||||
Investment in Bank | (1,271) | (930) | (616) | ||||||||
Principal repayments on loan receivable from ESOP | 536 | 493 | 452 | ||||||||
Net cash used in investing activities | (735) | (437) | (164) | ||||||||
Cash flows from financing activities | |||||||||||
Proceeds from exercise of stock options | 318 | 332 | 159 | ||||||||
Proceeds from exercise of stock warrant | 0 | 2,496 | 0 | ||||||||
Repurchase of common stock | 0 | 0 | (820) | ||||||||
Payment of dividends | (4,431) | (3,641) | (2,578) | ||||||||
Net cash provided by financing activities | (4,113) | (813) | (3,239) | ||||||||
Net increase in cash and cash equivalents | 612 | 975 | 57 | ||||||||
Cash and cash equivalents: | |||||||||||
Beginning of period | $ 2,282 | $ 1,307 | 2,282 | 1,307 | 1,250 | ||||||
End of period | $ 2,894 | $ 2,282 | $ 2,894 | $ 2,282 | $ 1,307 |
Net Income Per Common Share_ Sc
Net Income Per Common Share: Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share, Basic [Abstract] | |||||||||||
Net income to common shareholders | $ 16,721 | $ 14,167 | $ 10,154 | ||||||||
Denominator – weighted average common shares outstanding (shares) | 7,334,577 | 7,136,690 | 6,842,614 | ||||||||
Basic net income per common share (in dollars per share) | $ 0.60 | $ 0.60 | $ 0.58 | $ 0.49 | $ 0.50 | $ 0.59 | $ 0.44 | $ 0.46 | $ 2.28 | $ 1.99 | $ 1.48 |
Diluted net income per common share computation | |||||||||||
Effect of dilutive stock options (shares) | 191,767 | 163,773 | 78,910 | ||||||||
Effect of dilutive stock warrant (shares) | 0 | 79,590 | 183,825 | ||||||||
Weighted average common shares outstanding-assuming dilution (shares) | 7,526,344 | 7,380,053 | 7,105,349 | ||||||||
Diluted net income per common share (in dollars per share) | $ 0.59 | $ 0.59 | $ 0.57 | $ 0.48 | $ 0.48 | $ 0.58 | $ 0.42 | $ 0.43 | $ 2.22 | $ 1.92 | $ 1.43 |
Net Income Per Common Share_ Na
Net Income Per Common Share: Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of securities called by warrants (shares) | 370,899 | |||
Proceeds from warrants exercised | $ 2,496 | |||
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 29,581 | 1,117 | 42,801 | |
Warrant | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 370,899 | |||
Common Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Exercise price (in dollars per share) | $ 6.73 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 111,000 | $ 96,834 | $ 89,187 | |
Ending Balance | 124,657 | 111,000 | 96,834 | |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | [1] | (124) | (175) | (313) |
Net change | [1] | (5) | 51 | 138 |
Ending Balance | [1] | (129) | (124) | (175) |
Changes in fair value of available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | [1] | (19) | 4 | 3 |
Net change | [1] | (39) | (23) | 1 |
Ending Balance | [1] | (58) | (19) | 4 |
Other-than-temporary impairment on held to maturity securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | [1] | (105) | (179) | (316) |
Net change | [1] | 34 | 74 | 137 |
Ending Balance | [1] | $ (71) | $ (105) | $ (179) |
[1] | All amounts are net of income taxes. |
Fair Value Measurements_ Balanc
Fair Value Measurements: Balances of Assets and Liabilities Measured on a Recurring Balance (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 1,154 | $ 1,241 |
Mortgage-backed Securities, U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 237 | 289 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 917 | 952 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,154 | 1,241 |
Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 917 | 952 |
Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 237 | 289 |
Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Mortgage-backed Securities, U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 237 | 289 |
Recurring | Mortgage-backed Securities, U.S. government agencies | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Mortgage-backed Securities, U.S. government agencies | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 237 | 289 |
Recurring | Mortgage-backed Securities, U.S. government agencies | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 917 | 952 |
Recurring | Mutual funds | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 917 | 952 |
Recurring | Mutual funds | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Mutual funds | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 0 | $ 0 |
Fair Value Measurements_ Bala_2
Fair Value Measurements: Balances of Assets and Liabilities Measured on Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | $ 0 | $ 0 |
Fair Value, Inputs, Level 1 | Mortgage loans, commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | |
Fair Value, Inputs, Level 1 | Mortgage loans, land | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 1 | Consumer loans, home equity and second mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | |
Fair Value, Inputs, Level 1 | Commercial business loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | |
Fair Value, Inputs, Level 1 | Total impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 1 | Private label residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 1 | OREO and other repossessed items | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 3 | 125 |
Fair Value, Inputs, Level 2 | Mortgage loans, commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | |
Fair Value, Inputs, Level 2 | Mortgage loans, land | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 | Consumer loans, home equity and second mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | |
Fair Value, Inputs, Level 2 | Commercial business loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | |
Fair Value, Inputs, Level 2 | Total impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 | Private label residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 3 | 125 |
Fair Value, Inputs, Level 2 | OREO and other repossessed items | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 2,139 | 5,987 |
Fair Value, Inputs, Level 3 | Mortgage loans, commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 1,880 | |
Fair Value, Inputs, Level 3 | Mortgage loans, land | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 119 | 697 |
Fair Value, Inputs, Level 3 | Consumer loans, home equity and second mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 109 | |
Fair Value, Inputs, Level 3 | Commercial business loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 107 | |
Fair Value, Inputs, Level 3 | Total impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 226 | 2,686 |
Fair Value, Inputs, Level 3 | Private label residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 3 | OREO and other repossessed items | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | $ 1,913 | $ 3,301 |
Fair Value Measurements_ Level
Fair Value Measurements: Level 3 Fair Value Measurements, Nonrecurring (Details) - Nonrecurring - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, estimated fair value, nonrecurring | $ 2,139 | $ 5,987 |
Total impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, estimated fair value, nonrecurring | 226 | 2,686 |
OREO and other repossessed assets | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, estimated fair value, nonrecurring | 1,913 | 3,301 |
Market approach | Total impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, estimated fair value, nonrecurring | 226 | 2,686 |
Market approach | OREO and other repossessed assets | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, estimated fair value, nonrecurring | $ 1,913 | $ 3,301 |
Fair Value Measurements_ Estima
Fair Value Measurements: Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Recorded Amount | ||
Fair value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 148,864 | $ 148,188 |
CDs held for investment | 63,290 | 43,034 |
Investment securities | 13,964 | 8,380 |
FHLB stock | 1,190 | 1,107 |
Other investments | 3,000 | |
Other investments | 3,000 | |
Loans held for sale | 1,785 | 3,599 |
Loans receivable, net | 725,391 | 690,364 |
Accrued interest receivable | 2,877 | 2,520 |
Non-interest-bearing demand | 233,258 | 205,952 |
Interest-bearing | 656,248 | 631,946 |
Total deposits | 889,506 | 837,898 |
Accrued interest payable | 225 | 161 |
Fair Value | ||
Fair value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 148,864 | 148,188 |
CDs held for investment | 63,290 | 43,034 |
Investment securities | 14,418 | 8,985 |
FHLB stock | 1,190 | 1,107 |
Other investments | 3,000 | |
Other investments | 3,000 | |
Loans held for sale | 1,814 | 3,619 |
Loans receivable, net | 711,071 | 688,332 |
Accrued interest receivable | 2,877 | 2,520 |
Non-interest-bearing demand | 233,258 | 205,952 |
Interest-bearing | 655,271 | 632,629 |
Total deposits | 888,529 | 838,581 |
Accrued interest payable | 225 | 161 |
Fair Value | Fair Value, Inputs, Level 1 | ||
Fair value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 148,864 | 148,188 |
CDs held for investment | 63,290 | 43,034 |
Investment securities | 8,812 | 3,954 |
FHLB stock | 1,190 | 1,107 |
Other investments | 3,000 | |
Other investments | 3,000 | |
Loans held for sale | 1,814 | 3,619 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 2,877 | 2,520 |
Non-interest-bearing demand | 233,258 | 205,952 |
Interest-bearing | 514,440 | 492,305 |
Total deposits | 747,698 | 698,257 |
Accrued interest payable | 225 | 161 |
Fair Value | Fair Value, Inputs, Level 2 | ||
Fair value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
CDs held for investment | 0 | 0 |
Investment securities | 5,606 | 5,031 |
FHLB stock | 0 | 0 |
Other investments | 0 | |
Other investments | 0 | |
Loans held for sale | 0 | 0 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Non-interest-bearing demand | 0 | 0 |
Interest-bearing | 0 | 0 |
Total deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Fair Value | Fair Value, Inputs, Level 3 | ||
Fair value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
CDs held for investment | 0 | 0 |
Investment securities | 0 | 0 |
FHLB stock | 0 | 0 |
Other investments | 0 | |
Other investments | 0 | |
Loans held for sale | 0 | 0 |
Loans receivable, net | 711,071 | 688,332 |
Accrued interest receivable | 0 | 0 |
Non-interest-bearing demand | 0 | 0 |
Interest-bearing | 140,831 | 140,324 |
Total deposits | 140,831 | 140,324 |
Accrued interest payable | $ 0 | $ 0 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited): Selected financial data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 11,051 | $ 10,457 | $ 10,290 | $ 10,035 | $ 9,711 | $ 10,165 | $ 9,299 | $ 9,163 | |||
Interest expense | (781) | (730) | (666) | (601) | (582) | (918) | (847) | (850) | $ (2,778) | $ (3,197) | $ (4,072) |
Net interest income | 10,270 | 9,727 | 9,624 | 9,434 | 9,129 | 9,247 | 8,452 | 8,313 | 39,055 | 35,141 | 30,803 |
Recapture of loan losses | 0 | (1,000) | (250) | 0 | 0 | (1,250) | 0 | ||||
Non-interest income | 3,180 | 3,145 | 3,082 | 3,137 | 3,145 | 3,156 | 2,851 | 3,216 | 12,544 | 12,368 | 10,889 |
Non-interest expense (1) | (7,658) | (7,122) | (7,221) | (7,176) | (6,911) | (6,938) | (6,857) | (6,810) | (29,177) | (27,516) | (26,637) |
Income before income taxes | 5,792 | 5,750 | 5,485 | 5,395 | 5,363 | 6,465 | 4,696 | 4,719 | |||
Provision for income taxes | 1,370 | 1,334 | 1,216 | 1,781 | 1,748 | 2,188 | 1,568 | 1,572 | 5,701 | 7,076 | 4,901 |
Net income | $ 4,422 | $ 4,416 | $ 4,269 | $ 3,614 | $ 3,615 | $ 4,277 | $ 3,128 | $ 3,147 | $ 16,721 | $ 14,167 | $ 10,154 |
Net income per common share | |||||||||||
Basic (in dollars per share) | $ 0.60 | $ 0.60 | $ 0.58 | $ 0.49 | $ 0.50 | $ 0.59 | $ 0.44 | $ 0.46 | $ 2.28 | $ 1.99 | $ 1.48 |
Diluted (in dollars per share) | $ 0.59 | $ 0.59 | $ 0.57 | $ 0.48 | $ 0.48 | $ 0.58 | $ 0.42 | $ 0.43 | $ 2.22 | $ 1.92 | $ 1.43 |
Selected Quarterly Financial _4
Selected Quarterly Financial Dara (Unaudited): Selected financial data (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | |||||||||||
Recapture of loan losses | $ 0 | $ 1,000 | $ 250 | $ 0 | $ 0 | $ 1,250 | $ 0 | ||||
South Sound Bank | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business combination, acquisition related costs | $ 346 | $ 181 | $ 80 | $ 9 |
Subsequent Event - Business C_2
Subsequent Event - Business Combination (Details) - South Sound Merger - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2018 | Sep. 30, 2018 |
Subsequent Event [Line Items] | ||
Business combination, assets | $ 178,333 | |
Business combination, loan portfolio | 121,347 | |
Business combination, deposits | 151,427 | |
Business combination, acquisition related costs | $ 616 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Acquisition percentage | 100.00% | |
Shares issued (shares) | 904,826 | |
Shares issued, value | $ 28,267 | |
Share price (usd per share) | $ 31.24 | |
Cash paid | $ 6,903 | |
Consideration transferred | $ 35,170 | |
Timberland Bank | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Shares issued (usd per share) | $ 0.746 | |
South Sound Bank | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Shares issued (usd per share) | $ 5.68825 |