Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Nov. 30, 2019 | Mar. 31, 2019 | |
Document and Entity Information | |||
Entity Registrant Name | TIMBERLAND BANCORP INC, | ||
Entity Central Index Key | 0001046050 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 8,345,069 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 233.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Cash and cash equivalents: | ||
Cash and due from financial institutions | $ 25,179 | $ 20,238 |
Interest-bearing deposits in banks | 117,836 | 128,626 |
Total cash and cash equivalents | 143,015 | 148,864 |
Certificates of deposit (“CDs”) held for investment (at cost, which approximates fair value) | 78,346 | 63,290 |
Investment securities held to maturity, at amortized cost (estimated fair value $32,580 and $13,264) | 31,102 | 12,810 |
Investment securities available for sale, at fair value | 22,532 | 1,154 |
Investments in equity securities, at fair value | 958 | 0 |
Federal Home Loan Bank of Des Moines (“FHLB”) stock | 1,437 | 1,190 |
Other investments, at cost | 3,000 | 3,000 |
Loans held for sale | 6,071 | 1,785 |
Loans receivable, net of allowance for loans losses of $9,690 and $9,530 | 886,662 | 725,391 |
Premises and equipment, net | 22,830 | 18,953 |
Other real estate owned (“OREO”) and other repossessed assets, net | 1,683 | 1,913 |
Accrued interest receivable | 3,598 | 2,877 |
Bank owned life insurance (“BOLI”) | 21,005 | 19,813 |
Goodwill | 15,131 | 5,650 |
Core deposit intangible (“CDI”), net | 2,031 | 0 |
Servicing rights, net | 2,408 | 2,028 |
Escrow deposit for business combination | 0 | 6,900 |
Other assets | 5,323 | 2,672 |
Total assets | 1,247,132 | 1,018,290 |
Deposits: | ||
Non-interest-bearing demand | 296,472 | 233,258 |
Interest-bearing | 771,755 | 656,248 |
Total deposits | 1,068,227 | 889,506 |
Other liabilities and accrued expenses | 7,838 | 4,127 |
Total liabilities | 1,076,065 | 893,633 |
Commitments and contingencies (See Note 16) | ||
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; 8,329,419 shares issued and outstanding - September 30, 2019 7,401,177 shares issued and outstanding - September 30, 2018 | 43,030 | 14,394 |
Unearned shares issued to Employee Stock Ownership Plan (“ESOP”) | 0 | (133) |
Retained earnings | 127,987 | 110,525 |
Accumulated other comprehensive income (loss) | 50 | (129) |
Total shareholders’ equity | 171,067 | 124,657 |
Total liabilities and shareholders’ equity | $ 1,247,132 | $ 1,018,290 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Mortgage-backed securities and other investments held to maturity-fair value | $ 32,580 | $ 13,264 |
Allowance for loan losses | $ 9,690 | $ 9,530 |
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 | 8,329,419 | 7,401,177 |
Common stock shares outstanding | 8,329,419 | 7,401,177 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest and dividend income | |||
Loans receivable and loans held for sale | $ 49,127 | $ 38,298 | $ 36,385 |
Investment securities | 1,264 | 217 | 279 |
Dividends from mutual funds, FHLB stock and other investments | 162 | 120 | 88 |
Interest-bearing deposits in banks and CDs | 5,172 | 3,198 | 1,586 |
Total interest and dividend income | 55,725 | 41,833 | 38,338 |
Interest expense | |||
Deposits | 4,565 | 2,778 | 2,218 |
FHLB borrowings | 0 | 0 | 979 |
Total interest expense | 4,565 | 2,778 | 3,197 |
Net interest income | 51,160 | 39,055 | 35,141 |
Recapture of loan losses | 0 | 0 | (1,250) |
Net interest income after recapture of loan losses | 51,160 | 39,055 | 36,391 |
Non-interest income | |||
Recoveries on investment securities | 71 | 73 | 38 |
Adjustment for portion of other than temporary impairment (OTTI) transferred from other comprehensive income (loss) (before income taxes) | (12) | (5) | (5) |
Net recoveries on investment securities | 59 | 68 | 33 |
Gain on sales of investment securities, net | 47 | 0 | 0 |
BOLI net earnings | 1,641 | 547 | 545 |
Gain on sales of loans, net | 1,754 | 1,893 | 2,157 |
Other, net | 1,195 | 1,085 | 1,050 |
Total non-interest income, net | 14,341 | 12,544 | 12,368 |
Non-interest expense | |||
Salaries and employee benefits | 18,545 | 15,740 | 14,908 |
Premises and equipment | 3,831 | 3,231 | 3,082 |
Loss (gain) on sales/dispositions of premises and equipment, net | 7 | (102) | 5 |
Advertising | 696 | 782 | 698 |
OREO and other repossessed assets, net | 221 | 140 | 22 |
ATM and debit card interchange transaction fees | 1,583 | 1,296 | 1,405 |
Postage and courier | 514 | 456 | 435 |
Amortization of CDI | 452 | 0 | 0 |
State and local taxes | 873 | 687 | 609 |
Professional fees | 1,019 | 1,390 | 887 |
Federal Deposit Insurance Corporation (FDIC) insurance | 187 | 294 | 362 |
Loan administration and foreclosure | 382 | 336 | 205 |
Data processing and telecommunications | 3,707 | 1,938 | 1,870 |
Deposit operations | 1,358 | 1,192 | 1,074 |
Other | 2,205 | 1,797 | 1,954 |
Total non-interest expense, net | 35,580 | 29,177 | 27,516 |
Income before income taxes | 29,921 | 22,422 | 21,243 |
Provision for income taxes | 5,901 | 5,701 | 7,076 |
Net income | $ 24,020 | $ 16,721 | $ 14,167 |
Net income per common share | |||
Basic (in dollars per share) | $ 2.89 | $ 2.28 | $ 1.99 |
Diluted (in dollars per share) | $ 2.84 | $ 2.22 | $ 1.92 |
Service charges on deposits | |||
Non-interest income | |||
Service charges on deposits | $ 4,904 | $ 4,581 | $ 4,518 |
ATM and debit card interchange transaction fees | |||
Non-interest income | |||
Service charges on deposits | 4,036 | 3,570 | 3,343 |
Escrow fees | |||
Non-interest income | |||
Service charges on deposits | 197 | 211 | 242 |
Servicing income on loans sold | |||
Non-interest income | |||
Service charges on deposits | 462 | 480 | 417 |
Fee income from non-deposit investment sales | |||
Non-interest income | |||
Service charges on deposits | $ 46 | $ 109 | $ 63 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Comprehensive income | |||
Net income | $ 24,020 | $ 16,721 | $ 14,167 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Unrealized holding gain (loss) on investment securities available for sale, net of income taxes of $23, ($8), and ($12), respectively | 85 | (39) | (23) |
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 ($1), ($2), and $12, respectively | (3) | (7) | 22 |
Amount reclassified to credit loss for previously recorded market loss, net of income taxes of $3, $1, and $2, respectively | 9 | 4 | 3 |
Accretion of OTTI on investment securities held to maturity, net of income taxes of $6, $10, and $26, respectively | 25 | 37 | 49 |
Total other comprehensive income (loss), net of income taxes | 116 | (5) | 51 |
Total comprehensive income | $ 24,136 | $ 16,716 | $ 14,218 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Unrealized holding gain (loss) on investment securities available-for-sale, taxes | $ 23 | $ (8) | $ (12) |
Reclassification adjustment for gain on sale of investment securities available-for-sale, taxes | 0 | 0 | 0 |
Other Than Temporary Impairment Losses, Investments, Portion In Other Comprehensive Loss, Adjustments Related To Other Factors, Tax, Portion Attributable To Parent, Held-to-maturity Securities | (1) | (2) | 12 |
Amount reclassified to credit loss for previously recorded market loss, taxes | 3 | 1 | 2 |
Accretion of OTTI on investment securities held-to-maturity, taxes | $ 6 | $ 10 | $ 26 |
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, 2016 | $ 96,834 | $ 9,961 | $ (661) | $ 87,709 | $ (175) |
Beginning 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 ($0.50, $0.60, and $0.78 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) |
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 ($0.50, $0.60, and $0.78 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) |
Ending Balance (in shares) at Sep. 30, 2018 | 7,401,177 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 24,020 | 24,020 | |||
Other comprehensive income | 116 | 116 | |||
Repurchase of common stock | (499) | $ (499) | |||
Repurchase of common stock (in shares) | (20,440) | ||||
Common stock issued for business combination | $ 28,267 | ||||
Common stock issued for business combination (in shares) | 904,826 | ||||
Exercise of stock options | $ 401 | $ 401 | |||
Exercise of stock options (in shares) | 43,856 | 43,856 | |||
Common stock dividends ($0.50, $0.60, and $0.78 per share, respectively) | $ (6,495) | (6,495) | |||
Earned ESOP shares, net of income taxes | 441 | $ 308 | 133 | ||
Stock option/MRDP compensation expense | 159 | 159 | |||
Ending Balance at Sep. 30, 2019 | $ 171,067 | $ 43,030 | $ 0 | $ 127,987 | $ 50 |
Ending Balance (in shares) at Sep. 30, 2019 | 8,329,419 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Common Stock | |||
Common stock dividends (in dollars per share) | $ 0.78 | $ 0.60 | $ 0.50 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Cash Flows [Abstract] | |||
Cash acquired, net of cash consideration paid in business combination | $ 14,284 | $ 0 | $ 0 |
Cash flows from operating activities | |||
Net income | 24,020 | 16,721 | 14,167 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 1,604 | 1,290 | 1,262 |
Deferred income taxes | 703 | 797 | 385 |
Amortization of CDI | 452 | 0 | 0 |
Earned ESOP shares | 441 | 882 | 605 |
Accretion of discount on purchased loans | (645) | 0 | 0 |
Stock option compensation expense | 159 | 172 | 156 |
Gain on sales of investment securities | (47) | 0 | 0 |
Net recoveries on investment securities | (59) | (68) | (33) |
Change in fair value of investments in equity securities | (41) | 0 | 0 |
Gain on sales of OREO and other repossessed assets, net | (89) | (229) | (54) |
Provision for OREO losses | 24 | 248 | 42 |
Gain on sales of loans, net | (1,754) | (1,893) | (2,157) |
(Gain) loss on sales/dispositions of premises and equipment, net | 7 | (102) | 5 |
Recapture of loan losses | 0 | 0 | (1,250) |
Loans originated for sale | (70,489) | (62,677) | (69,996) |
Proceeds from sales of loans | 67,957 | 66,384 | 72,158 |
Amortization of servicing rights | 646 | 491 | 487 |
Valuation adjustment on servicing rights, net | 4 | 0 | 0 |
BOLI net earnings | (613) | (547) | (545) |
BOLI death benefit in excess of cash surrender value | (1,028) | 0 | 0 |
Increase in deferred loan origination fees | 161 | 171 | 237 |
Net change in accrued interest receivable and other assets, and other liabilities and accrued expenses | (3,305) | (190) | (1,610) |
Net cash provided by operating activities | 18,108 | 21,450 | 13,859 |
Cash flows from investing activities | |||
Net (increase) decrease in CDs held for investment | (12,083) | (20,256) | 9,966 |
Purchase of investment securities held to maturity | (13,166) | (6,073) | 0 |
Purchase of investment securities available for sale | (20,909) | 0 | 0 |
Proceeds from maturities and prepayments of investment securities held to maturity | 11,784 | 554 | 609 |
Proceeds from maturities and prepayments of investment securities available for sale | 1,412 | 41 | 68 |
Proceeds from sale of investment securities held to maturity | 2,937 | 0 | 0 |
Proceeds from sales of investment securities available for sale | 2,332 | 0 | 0 |
Purchase of FHLB stock | (42) | (83) | (103) |
Proceeds from redemption of FHLB stock | 0 | 0 | 1,200 |
Purchase of other investments | 0 | 0 | (3,000) |
Increase in loans receivable, net | (39,536) | (35,522) | (26,956) |
Additions to premises and equipment | (2,151) | (2,186) | (3,526) |
Proceeds from sales of OREO and other repossessed assets | 613 | 1,693 | 1,579 |
Proceeds from sales/dispositions of premises and equipment | 0 | 463 | 0 |
Proceeds from death benefit on BOLI | 3,078 | 0 | 0 |
Escrow deposit for business combination | 6,900 | (6,900) | 0 |
Net cash used in investing activities | (44,547) | (68,269) | (20,163) |
Cash flows from financing activities | |||
Net increase in deposits | 27,183 | 51,608 | 76,364 |
Repayment of FHLB borrowings | 0 | 0 | (30,000) |
Proceeds from exercise of stock options | 401 | 318 | 332 |
Proceeds from exercise of stock warrant | 0 | 0 | 2,496 |
Repurchase of common stock | (499) | 0 | 0 |
Payment of dividends | (6,495) | (4,431) | (3,641) |
Net cash provided by financing activities | 20,590 | 47,495 | 45,551 |
Net increase (decrease) in cash and cash equivalents | (5,849) | 676 | 39,247 |
Beginning of period | 148,864 | 148,188 | 108,941 |
End of period | 143,015 | 148,864 | 148,188 |
Supplemental disclosure of cash flow information | |||
Income taxes paid | 6,593 | 4,462 | 7,596 |
Interest paid | 4,457 | 2,714 | 3,283 |
Supplemental disclosure of non-cash investing activities | |||
Loans transferred to OREO and other repossessed assets | 293 | 324 | 751 |
Other comprehensive income | $ 116 | $ (5) | $ 51 |
Business Combinations
Business Combinations | 12 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combination On October 1, 2018, the Company completed the South Sound Acquisition. The primary reason for the acquisition was to expand the Company's presence along Washington State's economically important I-5 corridor. 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 . The South Sound Acquisition constitutes a business combination as defined by GAAP, which establishes principles and requirements for how the acquirer in a business combination recognizes and measures in its financial statements the identifiable assets acquired and liabilities assumed. The Company was considered the acquirer in this transaction. Accordingly, the estimated fair values of the acquired assets, including the identifiable intangible assets, and the assumed liabilities in the South Sound Acquisition were measured and recorded as of October 1, 2018. The excess of the total consideration paid over the fair value of the net assets acquired was allocated to goodwill. The South Sound Acquisition resulted in $9,481,000 of goodwill. The goodwill arising from this transaction consists largely of the synergies and expected economies of scale from combining the operations of the Company and South Sound Bank. This goodwill is not deductible for tax purposes. In most instances, determining the estimated fair values of the acquired assets and assumed liabilities requires the Company to estimate cash flows expected to result from those assets and liabilities and to discount those cash flows at the appropriate rate of interest. Differences may arise between contractually required payments and the expected cash flows at the acquisition date due to items such as estimated credit losses, prepayments or early withdrawal, and other factors. One of the most significant of those determinations relates to the valuation of acquired loans. For such loans, the excess of cash flows expected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans. In accordance with GAAP, there was no carry-over of South Sound Bank's previously established allowance for loan losses. The following table summarizes the fair value of consideration paid, the estimated fair values of assets acquired and liabilities assumed as of the acquisition date, and the resulting goodwill relating to the transaction: At October 1, 2018 Book Value Fair Value Adjustment Estimated Fair Value (Dollars in thousands) Total acquisition consideration $ 35,170 Recognized amounts of identifiable assets acquired and liabilities assumed Identifiable assets acquired: Cash and cash equivalents $ 21,187 $ — 21,187 CDs held for investment 2,973 — 2,973 FHLB stock 205 — 205 Investment securities held to maturity 19,891 (189 ) 19,702 Investment securities available for sale 5,022 — 5,022 Loans receivable 123,627 (2,083 ) 121,544 Premises and equipment 3,225 112 3,337 OREO 25 — 25 Accrued interest receivable 554 — 554 BOLI 2,629 — 2,629 CDI — 2,483 2,483 Servicing rights 285 (4 ) 281 Other assets 1,087 (511 ) 576 Total assets 180,710 (192 ) 180,518 Liabilities assumed: Deposits 151,378 160 151,538 Other liabilities and accrued expenses 3,291 — 3,291 Total liabilities assumed 154,669 160 154,829 Total identifiable net assets acquired $ 26,041 $ (352 ) 25,689 Goodwill recognized $ 9,481 The acquired loan portfolio was valued using Level 3 inputs (see Note 21) and included the use of present value techniques, including cash flow estimates and incorporated assumptions that the Company believes marketplace participants would use in estimating fair values. The operating results of the Company for the year ended September 30, 2019 include the operating results produced by the net assets acquired in the South Sound Acquisition since the October 1, 2018 acquisition date. The Company determined that the disclosure requirements related to the amounts of revenues and earnings from the net assets acquired in the South Sound Acquisition since the October 1, 2018 acquisition date is impracticable. The financial activity and operating results of the net assets acquired in the South Sound Acquisition were commingled with the Company's financial activity and operating results as of the acquisition date. For illustrative purposes only, the following table presents certain unaudited pro forma information for the years ended September 30, 2019 and 2018. This unaudited estimated pro forma information was calculated as if South Sound Bank had been acquired as of the beginning of the fiscal year ended September 30, 2018. The unaudited estimated pro forma information combines the historical results of South Sound Bank with the Company's consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the transaction occurred at the beginning of the fiscal year ended September 30, 2018. The unaudited pro forma information does not consider any changes to the provision for loan losses resulting from recording loans at fair value. Additionally, the Company expects to achieve further operating cost savings and other business synergies, including revenue growth as a result of the acquisition, which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented. Pro Forma for the Year Ended September 30, 2019 2018 (Dollars in thousands, except per share amounts) Total revenues (net interest income plus non-interest income) $ 65,501 $ 59,184 Net income 24,385 18,825 Basic net income per common share 2.93 2.28 Diluted net income per common share 2.88 2.23 During the year ended September 30, 2019, the Company incurred acquisition-related expenses of $462,000 related to the South Sound Acquisition, of which $317,000 is included in data processing and telecommunications and $145,000 is included in professional fees in the accompanying consolidated statements of income. During the year ended September 30, 2018, the Company incurred acquisition-related expenses of $616,000 related to the South Sound Acquisition, which are all included in professional fees in the accompanying consolidated statement of income. South Sound Bank incurred acquisition-related expenses of $1,598,000 for the fiscal year ended September 30, 2018 related to the South Sound Acquisition. The acquisition-related expenses incurred by the Company and South Sound Bank are not included in the unaudited pro forma information presented for the years ended September 30, 2019 and 2018. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2019 | |
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. On October 1, 2018, the Company completed the acquisition of South Sound Bank, a Washington-state chartered bank, headquartered in Olympia, Washington ("South Sound Acquisition"). The Company acquired 100% of the outstanding common stock of South Sound Bank, and South Sound Bank was merged into the Bank. The results of operations of the acquired assets and assumed liabilities have been included in the Company's consolidated financial statements as of and for the period since the acquisition date. See Note 2 for additional information on the South Sound Acquisition. 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 24 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 servicing rights, the valuation of OREO, the valuation of assets acquired and liabilities assumed in the South Sound Acquisition and the valuation of goodwill for potential impairment. Certain prior year amounts have been reclassified to conform to the 2019 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, 2019 and 2018 included deposits with the Federal Reserve Bank of San Francisco ("FRB") of $102,189,000 and $123,745,000 , 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 60 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 Investments in debt securities are classified upon acquisition as held to maturity or available for sale. Investments in debt 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. Investments in debt 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 debt securities available for sale that are deemed to be other than temporary are recognized in earnings when identified. The fair value of the debt security then becomes the new cost basis. For individual debt 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 debt 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 debt 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 debt security’s cost basis and its fair value at the consolidated balance sheet date. For individual debt 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. Investments in Equity Securities Investments in equity securities are stated at fair value. Prior to October 1, 2018, changes in the fair value of investments in equity securities were excluded from earnings and reported in other comprehensive income (loss), net of income tax effects. On October 1, 2018, the Company adopted ASU 2016-01 and reclassified its mutual funds as investments in equity securities. Beginning October 1, 2018, changes in the fair value of investments in equity securities are recorded in other non-interest income. 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, 2019 and 2018. 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 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. Acquired Loans Purchased loans, including loans acquired in business combinations, are recorded at their estimated fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either purchased credit-impaired ("PCI") or purchased non-credit-impaired. PCI loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The excess of the cash flows expected to be collected over a PCI loan's carrying value is considered to be the accretable yield and is recognized as interest income over the estimated life of the PCI loan using the effective yield method. The excess of the undiscounted contractual balances due over the cash flows expected to be collected is considered to be the nonaccretable difference. The nonaccretable difference represents the Company's estimate of the credit losses expected to occur and would be considered in determining the estimated fair value of the loans as of the acquisition date. Subsequent to the acquisition date, any increases in expected cash flows over those expected at the purchase date in excess of fair value are adjusted through a change to the accretable yield on a prospective basis. Any subsequent decreases in expected cash flows attributable to credit deterioration are recognized by recording an allowance for loan losses. PCI loans were insignificant as of September 30, 2019, and the Company had no PCI loans as of September 30, 2018. For purchased non-credit-impaired loans, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the life of the loans. Any subsequent deterioration in credit quality is recognized by recording an allowance for loan losses. 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 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, 2019 or 2018 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, 2019. 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, 2019, management believes that there were no events or changes in the circumstances since May 31, 2019 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. CDI CDI represents the future economic benefit of the potential cost savings from acquiring core deposits as part of a business combination compared to the cost of alternative funding sources. CDI is amortized to non-interest expense using an accelerated method based on an estimated runoff of related deposits over a period of ten years. CDI is evaluated for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, with any changes in estimated useful life accounted for prospectively over the revised remaining life. Servicing Rights 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. Servicing rights are capitalized at estimated fair value when acquired through the origination of loans that are subsequently sold with the servicing rights retained. Servicing rights are amortized to servicing income on loans sold approximately in proportion to and over the period of estimated net servicing income. The value of servicing rights 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 servicing rights must be stratified by one or more predominant risk characteristics of the underlying loans. The Company stratifies its capitalized servicing rights 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 servicing rights 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, 2015. ESOP The Bank sponsors a leveraged ESOP; however, all ESOP debt was fully repaid during the year ended September 30, 2019. The debt of the ESOP was payable to Timberland Bancorp, was recorded as other borrowed funds of the Bank, and was eliminated in the consolidated financial statements. The shares of the Company's common stock pledged as collateral for the ESOP's debt were reported as unearned shares issued to the ESOP in the consolidated financial statements. As shares were released from collateral, compensation expense was recorded equal to the average market price of the shares for the period, and the shares became available for net income per common share calculations. Dividends paid on unallocated shares reduced 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 equivale |
Investment Securities
Investment Securities | 12 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Investment Securities | Investment Securities Held to maturity and available for sale investment securities were as follows as of September 30, 2019 and 2018 (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2019 Held to Maturity Mortgage-backed securities ("MBS"): U.S. government agencies $ 27,786 $ 999 $ (2 ) $ 28,783 Private label residential 317 490 (1 ) 806 U.S. Treasury and U.S. government agency securities 2,999 — (8 ) 2,991 Total $ 31,102 $ 1,489 $ (11 ) $ 32,580 Available for Sale MBS: U.S. government agencies $ 22,418 $ 114 $ — $ 22,532 Total $ 22,418 $ 114 $ — $ 22,532 September 30, 2018 Held to Maturity 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 Held to maturity investment securities with unrealized losses were as follows as of September 30, 2019 (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 $ 291 $ (1 ) 2 $ 76 $ (1 ) 6 $ 367 $ (2 ) Private label residential — — — 23 (1 ) 5 23 (1 ) U.S. Treasury and U.S. government agency securities — — — 2,991 (8 ) 1 2,991 (8 ) Total $ 291 $ (1 ) 2 $ 3,090 $ (10 ) 12 $ 3,381 $ (11 ) 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 ) The Company has evaluated the investment securities in the above tables and has determined that the decline in their fair 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 fair value of these securities recovers. 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, 2019 , 2018 and 2017 : Range Weighted Minimum Maximum Average September 30, 2019 Constant prepayment rate 6.00 % 15.00 % 10.67 % Collateral default rate 3.00 % 19.70 % 10.40 % Loss severity rate — % 10.59 % 4.07 % 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 % The following table presents the OTTI recoveries for the years ended September 30, 2019 , 2018 and 2017 (dollars in thousands): 2019 2018 2017 Held To Maturity Held To Maturity Held To Maturity Total recoveries $ 71 $ 73 $ 38 Adjustment for portion of OTTI transferred from other comprehensive income (loss) before income taxes (1) (12 ) (5 ) (5 ) Net recoveries recognized in earnings (2) $ 59 $ 68 $ 33 ________________________ (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, 2019 , 2018 and 2017 (dollars in thousands): 2019 2018 2017 Balance, beginning of year $ 1,153 $ 1,301 $ 1,505 Additions: Additional increases to the amount related to credit loss for which OTTI was previously recognized 13 14 18 Subtractions: Realized losses previously recorded as credit losses (23 ) (80 ) (171 ) Recovery of prior credit loss (72 ) (82 ) (51 ) Balance, end of year $ 1,071 $ 1,153 $ 1,301 During the year ended September 30, 2019 , the Company recorded a $23,000 net realized loss (as a result of investment securities being deemed worthless) on seventeen held to maturity investment securities, all of which had been recognized previously as a credit loss. During the year ended September 30, 2018 , the Company recorded an $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. The recorded amount of investment securities pledged as collateral for public fund deposits, federal treasury tax and loan deposits and FHLB collateral totaled $18,587,000 and $12,100,000 at September 30, 2019 and 2018 , respectively. The contractual maturities of debt securities at September 30, 2019 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 $ 3,025 $ 3,017 $ — $ — Due after one year to five years 495 498 145 145 Due after five years to ten years 5,893 6,272 129 130 Due after ten years 21,689 22,793 22,144 22,257 Total $ 31,102 $ 32,580 $ 22,418 $ 22,532 |
Restricted Assets
Restricted Assets | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 were $1,898,000 and $1,609,000 , respectively. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 (dollars in thousands): 2019 2018 Mortgage loans: One- to four-family $ 132,661 $ 115,941 Multi-family 76,036 61,928 Commercial 419,117 345,113 Construction – custom and owner/builder 128,848 119,555 Construction – speculative one- to four-family 16,445 15,433 Construction – commercial 39,566 39,590 Construction – multi-family 36,263 10,740 Construction – land development 2,404 3,040 Land 30,770 25,546 Total mortgage loans 882,110 736,886 Consumer loans: Home equity and second mortgage 40,190 37,341 Other 4,312 3,515 Total consumer loans 44,502 40,856 Commercial business loans 64,764 43,053 Total loans receivable 991,376 820,795 Less: Undisbursed portion of construction loans in process 92,226 83,237 Deferred loan origination fees, net 2,798 2,637 Allowance for loan losses 9,690 9,530 104,714 95,404 Loans receivable, net $ 886,662 $ 725,391 Loans receivable at September 30, 2019 are reported net of unamortized discounts totaling $1,386,000 . There were no unamortized discounts on loans receivable at September 30, 2018. 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, 2019 , the Company had $ 922,300,000 (including $92,226,000 of undisbursed construction loans in process) in loans secured by real estate, which represented 93.0% 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, 2019 , 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. Related Party 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, 2019 and 2018 . Activity in related party loans during the years ended September 30, 2019 , 2018 and 2017 was as follows (dollars in thousands): 2019 2018 2017 Balance, beginning of year $ 119 $ 741 $ 230 New loans or borrowings 1 368 592 Repayments and reclassifications (26 ) (990 ) (81 ) Balance, end of year $ 94 $ 119 $ 741 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 and owner/builder construction loans are originated to home owners 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, 2019 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 $ 1,086 $ (23 ) $ — $ 104 $ 1,167 Multi-family 433 48 — — 481 Commercial 4,248 (260 ) — 166 4,154 Construction – custom and owner/builder 671 82 — 2 755 Construction – speculative one- to four-family 178 34 — — 212 Construction – commercial 563 (225 ) — — 338 Construction – multi-family 135 240 — — 375 Construction – land development 49 18 — — 67 Land 844 (116 ) (49 ) 18 697 Consumer loans: Home equity and second mortgage 649 (21 ) (5 ) — 623 Other 117 (19 ) (5 ) 6 99 Commercial business loans 557 242 (102 ) 25 722 Total $ 9,530 $ — $ (161 ) $ 321 $ 9,690 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 presents information on loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at September 30, 2019 (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 $ — $ 1,167 $ 1,167 $ 1,192 $ 131,469 $ 132,661 Multi-family — 481 481 — 76,036 76,036 Commercial — 4,154 4,154 3,190 415,927 419,117 Construction – custom and owner/ builder — 755 755 — 75,411 75,411 Construction – speculative one- to four-family — 212 212 — 10,779 10,779 Construction – commercial — 338 338 — 24,051 24,051 Construction – multi-family — 375 375 — 19,256 19,256 Construction – land development — 67 67 — 1,803 1,803 Land 27 670 697 204 30,566 30,770 Consumer loans: Home equity and second mortgage — 623 623 603 39,587 40,190 Other 17 82 99 23 4,289 4,312 Commercial business loans 128 594 722 725 64,039 64,764 Total $ 172 $ 9,518 $ 9,690 $ 5,937 $ 893,213 $ 899,150 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 an analysis of loans by aging category and portfolio segment at September 30, 2019 (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 $ — $ 286 $ 699 $ — $ 985 $ 131,676 $ 132,661 Multi-family — — — — — 76,036 76,036 Commercial 94 218 779 — 1,091 418,026 419,117 Construction – custom and owner/ builder — — — — — 75,411 75,411 Construction – speculative one- to four-family — — — — — 10,779 10,779 Construction – commercial — — — — — 24,051 24,051 Construction – multi-family — — — — — 19,256 19,256 Construction – land development — — — — — 1,803 1,803 Land 5 193 204 — 402 30,368 30,770 Consumer loans: Home equity and second mortgage 94 — 603 — 697 39,493 40,190 Other — — 23 — 23 4,289 4,312 Commercial business loans — 2 725 — 727 64,037 64,764 Total $ 193 $ 699 $ 3,033 $ — $ 3,925 $ 895,225 $ 899,150 __________________ (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, 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. 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, 2019 and 2018, 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, 2019 (dollars in thousands): Loan Grades Pass Watch Special Mention Substandard Total Mortgage loans: One- to four-family $ 129,748 $ 296 $ 562 $ 2,055 $ 132,661 Multi-family 76,036 — — — 76,036 Commercial 405,165 11,944 683 1,325 419,117 Construction – custom and owner / builder 75,178 233 — — 75,411 Construction – speculative one- to four-family 10,779 — — — 10,779 Construction – commercial 24,051 — — — 24,051 Construction – multi-family 19,256 — — — 19,256 Construction – land development 1,659 — — 144 1,803 Land 28,390 952 1,217 211 30,770 Consumer loans: Home equity and second mortgage 39,364 41 — 785 40,190 Other 4,257 33 — 22 4,312 Commercial business loans 63,669 232 85 778 64,764 Total $ 877,552 $ 13,731 $ 2,547 $ 5,320 $ 899,150 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 is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2019 (dollars in thousands): September 30, 2019 For the Year Ended September 30, 2019 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 $ 1,192 $ 1,236 $ — $ 1,110 $ 71 $ 62 Commercial 3,190 3,190 — 2,920 227 192 Land 63 126 — 100 3 3 Consumer loans: Home equity and second mortgage 603 603 — 459 — — Commercial business loans 189 291 — 142 30 30 Subtotal 5,237 5,446 — 4,731 331 287 With an allowance recorded: Mortgage loans: Land 141 141 27 246 — — Consumer loans: Other 23 23 17 10 — — Commercial business loans 536 536 128 350 30 30 Subtotal 700 700 172 606 30 30 Total: Mortgage loans: One- to four-family 1,192 1,236 — 1,110 71 62 Commercial 3,190 3,190 — 2,920 227 192 Land 204 267 27 346 3 3 Consumer loans: Home equity and second mortgage 603 603 — 459 — — Other 23 23 17 10 — — Commercial business loans 725 827 128 492 60 60 Total $ 5,937 $ 6,146 $ 172 $ 5,337 $ 361 $ 317 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 Unpaid Principal Related Average Interest Cash Basis 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 Company had $3,269,000 in TDRs included in impaired loans at September 30, 2019 and had no commitments to lend additional funds on these loans. 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 allowance for loan losses allocated to TDRs at September 30, 2019 and 2018 was $56,000 and $97,000 , respectively. The following tables set forth information with respect to the Company’s TDRs by interest accrual status as of September 30, 2019 and 2018 (dollars in thousands): 2019 Accruing Non- Accrual Total Mortgage loans: One- to four-family $ 493 $ 141 $ 634 Commercial 2,410 — 2,410 Consumer loans: Home equity and second mortgage — 82 82 Commercial business loans — 143 143 Total $ 2,903 $ 366 $ 3,269 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 There was one new TDR during the year ended September 30, 2019. There were three new TDRs during the year ended September 30, 2018. There were no new TDRs during the year ended September 30, 2017. The following table sets forth information with respect to the Company's TDRs, by portfolio segment, during the years ended September 30, 2019 and 2018 (dollars in thousands): 2019 Number of Contracts Pre-Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment End of Period Balance Home equity and second mortgage loan (1) 1 $ 85 $ 85 $ 82 Total 1 $ 85 $ 85 $ 82 2018 Land loans (2) 1 $ 244 $ 155 $ 153 Commercial business loans (1) 2 183 183 170 Total 3 $ 427 $ 338 $ 323 (1) Modifications were a result of reduction in interest rates or monthly payment amounts. (2) Modification was a result of a reduction in principal balance. There were no TDRs for which there was a payment default within the first 12 months of modification during the years ended September 30, 2019 , 2018 or 2017 . |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment consisted of the following at September 30, 2019 and 2018 (dollars in thousands): 2019 2018 Land $ 5,404 $ 4,400 Buildings and improvements 23,847 20,636 Furniture and equipment 9,012 8,026 Property held for future expansion 334 129 Construction and purchases in progress 338 566 38,935 33,757 Less accumulated depreciation 16,105 14,804 Premises and equipment, net $ 22,830 $ 18,953 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 $332,000 , $206,000 and $275,000 for the years ended September 30, 2019 , 2018 and 2017 , 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, 2019 are as follows (dollars in thousands): 2020 $ 315 2021 229 2022 35 Total minimum payments required $ 579 |
OREO and Other Repossessed Asse
OREO and Other Repossessed Assets | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 (dollars in thousands): 2019 2018 Amount Number Number Balance, beginning of year $ 1,913 12 $ 3,301 16 Addition due to South Sound Acquisition 25 1 — — Other additions 293 2 324 2 Writedowns (24 ) — (248 ) — Sales (524 ) (3 ) (1,464 ) (6 ) Balance, end of year $ 1,683 12 $ 1,913 12 At both September 30, 2019 and 2018, OREO and other repossessed assets consisted of 12 OREO properties in Washington, with balances ranging from $13,000 to $874,000 . The Company recorded net gains on sales of OREO and other repossessed assets of $89,000 , $229,000 , and $54,000 for the years ended September 30, 2019, 2018 and 2017, 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, 2019 , there were no foreclosed residential real estate properties held in OREO as a result of obtaining physical possession and the amount of one- to four-family properties in the process of foreclosure totaled $ 150,000 . 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. |
Goodwill and CDI
Goodwill and CDI | 12 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and CDI | Goodwill and CDI Goodwill The following table presents the change in the recorded amount of goodwill for the year ended September 30, 2019 (dollars in thousands). There were no changes to the recorded amount of goodwill for the years ended September 30, 2018 and 2017. Balance, beginning of year $ 5,650 Addition as a result of the South Sound Acquisition (see Note 2) 9,481 Balance, end of year $ 15,131 CDI During the year ended September 30, 2019, the Company recorded a CDI of $2,483,000 in connection with the South Sound Acquisition. The net unamortized CDI totaled $2,031,000 at September 30, 2019. The CDI amortization expense totaled $452,000 for the year ended September 30, 2019. Amortization expense for the CDI for fiscal years ending subsequent to September 30, 2019 is estimated to be as follows (dollars in thousands): 2020 $ 406 2021 361 2022 316 2023 271 2024 226 Thereafter 451 Total $ 2,031 |
Servicing Rights
Servicing Rights | 12 Months Ended |
Sep. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Servicing Rights | The Company services one- to four-family mortgage loans for Freddie Mac and also provides servicing 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, 2019 , 2018 and 2017 was $386,357,000 , $370,928,000 and $358,173,000 , respectively. The guaranteed principal amount of SBA loans serviced for others at September 30, 2019 , 2018 and 2017 was $ 12,765,000 , $754,000 and $697,000 , respectively. The following is an analysis of the changes in Freddie Mac servicing rights for the years ended September 30, 2019, 2018 and 2017 (dollars in thousands): 2019 2018 2017 Balance, beginning of year $ 2,022 $ 1,823 $ 1,570 Additions 747 687 739 Amortization (563 ) (488 ) (486 ) Balance, end of year $ 2,206 $ 2,022 $ 1,823 At September 30, 2019 , 2018 and 2017 , the estimated fair value of Freddie Mac servicing rights totaled $3,694,000 , $4,171,000 and $3,556,000 , respectively. The Freddie Mac servicing rights' fair values at September 30, 2019 , 2018 and 2017 were estimated using discounted cash flow analyses with average discount rates of 9.00% , 8.99% and 9.52% , respectively, and average conditional prepayment rates of 11.31% , 8.10% and 9.90% , respectively. At September 30, 2019, 2018 and 2017, there were no valuation allowances on the Freddie Mac servicing rights. The following is an analysis of the changes in SBA servicing rights for the years ended September 30, 2019, 2018 and 2017 (dollars in thousands): 2019 2018 2017 Balance, beginning of year $ 6 $ 2 $ 3 Additions due to South Sound Acquisition 281 — — Other additions 2 7 — Amortization (83 ) (3 ) (1 ) Valuation allowance (4 ) — — Balance, end of year $ 202 $ 6 $ 2 At September 30, 2019 , the estimated fair value of SBA servicing rights totaled $202,000 . The SBA servicing rights' fair values at September 30, 2019 were estimated using discounted cash flow analyses with average discount rates of 15.00% and average conditional prepayment rates of 16.13% . At September 30, 2019 there was a $4,000 valuation allowance on SBA servicing rights. At September 30, 2018 and 2017 the SBA servicing rights were insignificant. |
Deposits
Deposits | 12 Months Ended |
Sep. 30, 2019 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits consisted of the following at September 30, 2019 and 2018 (dollars in thousands): 2019 2018 Non-interest-bearing demand $ 296,472 $ 233,258 NOW checking 297,055 225,290 Savings 164,506 151,404 Money market 144,539 137,746 Certificates of deposit 165,655 141,808 Total $ 1,068,227 $ 889,506 Individual certificates of deposit in amounts of $250,000 or greater totaled $29,211,000 and $18,164,000 at September 30, 2019 and 2018 , respectively. The Company had brokered deposits totaling $19,327,000 and $17,202,000 at September 30, 2019 and 2018, respectively. Scheduled maturities of certificates of deposit for fiscal years ending subsequent to September 30, 2019 are as follows (dollars in thousands): 2020 $ 92,266 2021 38,724 2022 17,746 2023 8,113 2024 8,806 Total $ 165,655 Interest expense on deposits by account type was as follows for the years ended September 30, 2019 , 2018 and 2017 (dollars in thousands): 2019 2018 2017 NOW checking $ 840 $ 451 $ 460 Savings 106 85 78 Money market 1,119 722 434 Certificates of deposit 2,500 1,520 1,246 Total $ 4,565 $ 2,778 $ 2,218 |
FHLB Borrowings and Other Borro
FHLB Borrowings and Other Borrowings | 12 Months Ended |
Sep. 30, 2019 | |
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 both September 30, 2019 and 2018 . 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, 2019, 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, 2019 the Bank had a borrowing capacity on this line of $84,356,000 . The Bank had no outstanding borrowings on this line at both September 30, 2019 and 2018. 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 both September 30, 2019 and 2018 . |
Other Liabilities and Accrued E
Other Liabilities and Accrued Expenses | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 (dollars in thousands): 2019 2018 Accrued deferred compensation, profit sharing plans and bonuses payable $ 3,131 $ 1,235 Accrued interest payable on deposits 333 225 Accounts payable and accrued expenses - other 4,374 2,667 Total other liabilities and accrued expenses $ 7,838 $ 4,127 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2019 | |
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 year ended September 30, 2018, 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, 2019 , 2018 and 2017 were as follows (dollars in thousands): 2019 2018 2017 Current: Federal $ 5,198 $ 4,900 $ 6,656 State — 4 35 Deferred 703 797 385 Provision for income taxes $ 5,901 $ 5,701 $ 7,076 At September 30, 2019 the Company had income taxes receivable of $1,210,000 , which is included in other assets in the accompanying 2019 consolidated balance sheet. 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. The components of the Company’s deferred tax assets and liabilities at September 30, 2019 and 2018 were as follows (dollars in thousands): 2019 2018 Deferred Tax Assets Allowance for loan losses $ 1,550 $ 2,021 Allowance for OREO losses 218 311 Unearned ESOP shares — 32 Core deposit intangible — 31 OTTI credit impairment on investment securities 97 104 Accrued interest on loans 76 10 Net unrealized losses on investment securities — 42 Deferred compensation and bonuses 520 56 Reserve for loan commitments 51 43 Other 82 29 Total deferred tax assets 2,594 2,679 Deferred Tax Liabilities Goodwill 1,187 1,107 Servicing rights 506 426 Depreciation 494 283 Loan fees/costs 267 121 FHLB stock dividends 82 82 Prepaid expenses 70 74 Purchase accounting adjustment 110 — Net unrealized gains on investment securities and investments in equity securities 15 — Other — 2 Total deferred tax liabilities 2,731 2,095 Net deferred tax assets (liabilities) $ (137 ) $ 584 The provision for income taxes for the years ended September 30, 2019 , 2018 and 2017 differs from that computed at the federal statutory corporate tax rate as follows (dollars in thousands): 2019 2018 2017 Expected federal income tax provision at statutory rate $ 6,283 $ 5,500 $ 7,435 Net impact of the Tax Act — 548 — BOLI income (345 ) (134 ) (191 ) Dividends on ESOP (73 ) (71 ) (102 ) Stock options tax effect (87 ) (157 ) (188 ) Other, net 123 15 122 Provision for income taxes $ 5,901 $ 5,701 $ 7,076 No valuation allowance for deferred tax assets was recorded as of September 30, 2019 and 2018, as management believes that it is more likely than not that all of the deferred tax assets will be realized based on management's expectations of future taxable income. |
Employee Stock Ownership and 40
Employee Stock Ownership and 401(k) Plan | 12 Months Ended |
Sep. 30, 2019 | |
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 18 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 was repaid primarily from the Bank’s contributions to the ESOP and was fully repaid by March 31, 2019. The interest rate on the loan was 8.5% . Interest expense on the ESOP debt was $9,000 , $53,000 and $96,000 for the years ended September 30, 2019 , 2018 and 2017 , respectively. 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 were used to pay debt service through March 31, 2019. The dividends received after March 31, 2019 have been paid directly to participants. Dividends of $176,000 , $291,000 and $293,000 were used to service the debt during the years ended September 30, 2019, 2018 and 2017, respectively. As the Plan made each payment of principal and interest, an appropriate percentage of stock was released and allocated annually to eligible employee accounts, in accordance with applicable regulations. As of September 30, 2019 , an aggregate of 632,719 ESOP shares, which were previously released for allocation to participants, had been distributed to participants. Shares held by the ESOP as of September 30, 2019 , 2018 and 2017 were classified as follows: 2019 2018 2017 Unallocated shares — 17,639 52,905 Shares released for allocation 425,281 451,644 489,665 Total ESOP shares 425,281 469,283 542,570 The approximate fair market value of the ESOP’s unallocated shares at September 30, 2018 and 2017 was $551,000 and $1,658,000 , respectively. Compensation expense recognized under the ESOP for the years ended September 30, 2019 , 2018 and 2017 was $318,000 , $823,000 , and $495,000 , 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 $743,000 , $379,000 and $358,000 for the years ended September 30, 2019 , 2018 and 2017 , respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [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, 2019 , there were 30,076 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, 2019 and 2018, there were no unvested restricted stock awards. There were no restricted stock grants awarded during the years ended September 30, 2019, 2018 and 2017. Stock option activity for the years ended September 30, 2019 , 2018 and 2017 is summarized as follows: Number of Weighted Average 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 Options granted 46,840 27.14 Options exercised (43,856 ) 9.14 Options forfeited (5,500 ) 19.89 Outstanding September 30, 2019 378,304 $ 18.15 The aggregate intrinsic value of options exercised during the years ended September 30, 2019 and 2018 was $864,000 and $894,000 , 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 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 . There were 46,840 options granted during the year ended September 30, 2019 with an aggregate grant date fair value of $240,000 . The weighted average assumptions for options granted during the years ended September 30, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 Expected volatility 29 % 17 % 16 % Expected life (in years) 5 5 5 Expected dividend yield 3.28 % 2.61 % 1.85 % Risk free interest rate 1.53 % 2.97 % 1.89 % Grant date fair value per share $ 5.12 $ 4.48 $ 3.84 There were 77,540 options that vested during the year ended September 30, 2019 with a total fair value of $203,000 . 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 . At September 30, 2019 , there were 160,750 unvested options with an aggregate grant date fair value of $605,000 , all of which the Company assumes will vest. The unvested options had an aggregate intrinsic value of $658,000 at September 30, 2019 . At September 30, 2018 , there were 196,750 unvested options with an aggregate grant date fair value of $582,000 . Additional information regarding options outstanding at September 30, 2019 is as follows: Options Outstanding Options Exercisable Range of Exercise Prices ($) 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 $ 4.33 0.9 2,500 $ 4.33 0.9 5.86 - 6.00 19,100 5.97 3.1 19,100 5.97 3.1 9.00 49,975 9.00 4.1 49,975 9.00 4.1 10.26 - 10.71 110,839 10.58 5.5 87,589 10.57 5.5 15.67 48,000 15.67 7.0 27,000 15.67 7.0 27.14 46,840 27.14 10.0 — N/A N/A 29.69 55,600 29.69 8.0 22,300 29.69 8.0 31.80 45,450 31.80 9.0 9,090 31.80 9.0 378,304 $ 18.15 6.7 217,554 $ 13.21 5.5 The aggregate intrinsic value of options outstanding at September 30, 2019 , 2018 and 2017 was $3,854,000 , $5,813,000 , and $6,882,000 , respectively. As of September 30, 2019, unrecognized compensation cost related to non-vested stock options was $604,000 , which is expected to be recognized over a weighted average period of 2.45 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 is as follows (dollars in thousands): 2019 2018 Undisbursed portion of construction loans in process (see Note 5) $ 92,226 $ 83,237 Undisbursed lines of credit 80,184 49,525 Commitments to extend credit 16,578 17,665 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 $241,000 and $207,000 at September 30, 2019 and 2018 , 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, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [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 is required to maintain a capital conservation buffer consisting of additional CET1 capital greater than 2.5% of risk-weighted assets 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 retained income that could be utilized for such actions. At September 30, 2019, the Bank's CET1 capital exceeded the required capital conservation buffer. At September 30, 2019 and 2018 the Bank exceeded all regulatory capital requirements. The Bank was categorized as "well capitalized" at September 30, 2019 and 2018 under the regulations of the FDIC. The following tables compare the Bank’s actual capital amounts at September 30, 2019 and 2018 to its minimum regulatory capital requirements and "Well Capitalized" regulatory capital at those dates (dollars in thousands): September 30, 2019 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 $ 152,926 12.5 % $ 49,044 4.0 % $ 61,305 5.0 % Risk-based Capital Ratios: Common equity Tier 1 capital 152,926 18.1 38,019 4.5 54,916 6.5 Tier 1 capital 152,926 18.1 50,692 6.0 67,589 8.0 Total capital 162,857 19.3 67,589 8.0 84,487 10.0 September 30, 2018 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 $ 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 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, 2019 , Timberland Bancorp would have exceeded all regulatory requirements. The following table presents the regulatory capital ratios for Timberland Bancorp at September 30, 2019 and 2018 assuming Timberland Bancorp was subject to regulatory guidelines for bank holding companies with $3.0 billion or more in assets (dollars in thousands): 2019 2018 Amount Ratio Amount Ratio Leverage Capital Ratio: Tier 1 capital $ 155,468 12.7 % $ 120,175 12.0 % Risk-based Capital Ratios: Common equity Tier 1 capital 155,468 18.4 120,175 17.1 Tier 1 capital 155,468 18.4 120,175 17.1 Total capital 165,399 19.6 128,955 18.4 |
Condensed Financial Information
Condensed Financial Information - Parent Company Only | 12 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information - Parent Company Only | Condensed Financial Information - Parent Company Only Condensed Balance Sheets - September 30, 2019 and 2018 (dollars in thousands) 2019 2018 Assets Cash and cash equivalents: Cash and due from financial institutions $ 336 $ 306 Interest-bearing deposits in banks 2,555 2,588 Total cash and cash equivalents 2,891 2,894 Loan receivable from ESOP — 285 Investment in Bank 168,525 121,818 Other assets 15 15 Total assets $ 171,431 $ 125,012 Liabilities and shareholders’ equity Accrued expenses $ 364 $ 355 Shareholders’ equity 171,067 124,657 Total liabilities and shareholders’ equity $ 171,431 $ 125,012 Condensed Statements of Income - Years Ended September 30, 2019 , 2018 and 2017 (dollars in thousands) 2019 2018 2017 Operating income Interest on deposits in banks $ 67 $ 37 $ 27 Interest on loan receivable from ESOP 9 53 96 Dividends from Bank 6,607 4,429 1,390 Total operating income 6,683 4,519 1,513 Operating expenses 525 591 467 Income before income taxes and equity in undistributed income of Bank 6,158 3,928 1,046 Benefit for income taxes (169 ) (198 ) (385 ) Income before undistributed income of Bank 6,327 4,126 1,431 Equity in undistributed income of Bank 17,693 12,595 12,736 Net income $ 24,020 $ 16,721 $ 14,167 Condensed Statements of Cash Flows - Years Ended September 30, 2019 , 2018 and 2017 (dollars in thousands) 2019 2018 2017 Cash flows from operating activities Net income $ 24,020 $ 16,721 $ 14,167 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of Bank (17,693 ) (12,595 ) (12,736 ) Earned ESOP shares 441 882 605 Stock option compensation expense 159 172 156 Other, net 9 280 33 Net cash provided by operating activities 6,936 5,460 2,225 Cash flows from investing activities Investment in Bank (14,915 ) (1,271 ) (930 ) Principal repayments on loan receivable from ESOP 285 536 493 Cash acquired, net of cash consideration paid in business combination 14,284 — — Net cash used in investing activities (346 ) (735 ) (437 ) Cash flows from financing activities Proceeds from exercise of stock options 401 318 332 Proceeds from exercise of stock warrant — — 2,496 Repurchase of common stock (499 ) — — Payment of dividends (6,495 ) (4,431 ) (3,641 ) Net cash used in financing activities (6,593 ) (4,113 ) (813 ) Net (decrease) increase in cash and cash equivalents (3 ) 612 975 Cash and cash equivalents Beginning of period 2,894 2,282 1,307 End of period $ 2,891 $ 2,894 $ 2,282 |
Net Income Per Common Share
Net Income Per Common Share | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 , 2018 and 2017 is as follows (dollars in thousands, except per share amounts): 2019 2018 2017 Basic net income per common share computation Numerator - net income to common shareholders $ 24,020 $ 16,721 $ 14,167 Denominator - weighted average common shares outstanding 8,318,928 7,334,577 7,136,690 Basic net income per common share $ 2.89 $ 2.28 $ 1.99 Diluted net income per common share computation Numerator - net income to common shareholders $ 24,020 $ 16,721 $ 14,167 Denominator - weighted average common shares outstanding 8,318,928 7,334,577 7,136,690 Effect of dilutive stock options (1) 149,298 191,767 163,773 Effect of dilutive stock warrant (2) — — 79,590 Weighted average common shares outstanding-assuming dilution 8,468,226 7,526,344 7,380,053 Diluted net income per common share $ 2.84 $ 2.22 $ 1.92 ___________________ (1) For the years ended September 30, 2019 , 2018 and 2017 , average options to purchase 102,920 , 29,581 and 1,117 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, 2019 | |
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, 2019, 2018 and 2017 are as follows (dollars in thousands): Changes in fair value of available for sale securities [1] Changes in OTTI on held to maturity securities [1] Total [1] 2019 Balance of AOCI at the beginning of period $ (58 ) $ (71 ) $ (129 ) Other comprehensive income 85 31 116 Adoption of ASU 2016-01 63 — 63 Balance of AOCI at the end of period $ 90 $ (40 ) $ 50 2018 Balance of AOCI at the beginning of period $ (19 ) $ (105 ) $ (124 ) Other comprehensive loss (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 ) Other comprehensive income (23 ) 74 51 Balance of AOCI at the end of period $ (19 ) $ (105 ) $ (124 ) ___________________ [1] All amounts are net of income taxes. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined under GAAP as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of three levels. These levels are: 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 and investments in equity securities. The estimated fair values of MBS are based upon market prices of similar securities or observable inputs (Level 2). The estimated fair values 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, 2019 and 2018. The Company's assets measured at estimated fair value on a recurring basis at September 30, 2019 and 2018 are as follows (dollars in thousands): Estimated Fair Value September 30, 2019 Level 1 Level 2 Level 3 Total Available for sale investment securities MBS: U.S. government agencies $ — $ 22,532 $ — $ 22,532 Investments in equity securities Mutual funds 958 — — 958 Total $ 958 $ 22,532 $ — $ 23,490 September 30, 2018 Available for sale investment securities MBS: U.S. government agencies $ — $ 237 $ — $ 237 Mutual funds 917 — — 917 Total $ 917 $ 237 $ — $ 1,154 There were no transfers among Level 1, Level 2 and Level 3 during the years ended September 30, 2019 and 2018. 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 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, 2019 (dollars in thousands): Estimated Fair Value Impaired loans: Level 1 Level 2 Level 3 Mortgage loans: Land $ — $ — $ 114 Consumer loans: Other 6 Commercial business loans — — 408 Total impaired loans — — 528 Investment securities – held to maturity: MBS - Private label residential — 2 — OREO and other repossessed assets — — 1,683 Total $ — $ 2 $ 2,211 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, 2019 (dollars in thousands): Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range Impaired loans $ 528 Market approach Appraised value less estimated selling costs NA OREO and other repossessed assets 1,683 Market approach Lower of appraised value or listing price less estimated selling costs NA 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 estimated selling costs NA OREO and other repossessed assets 1,913 Market approach Lower of appraised value or listing price less estimated 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 fair value for these types of items as of September 30, 2019 and 2018 . 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. Additionally, in accordance with ASU 2016-01, which the Company adopted on October 1, 2018 on a prospective basis, the Company uses the exit price notion in calculating the fair values of financial instruments not measured at fair value on a recurring basis. The recorded amounts and estimated fair values of financial instruments were as follows as of September 30, 2019 (dollars in thousands): Fair Value Measurements Using: Recorded Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 143,015 $ 143,015 $ 143,015 $ — $ — CDs held for investment 78,346 78,346 78,346 — — Investment securities 53,634 55,112 3,949 51,163 — Investments in equity securities 958 958 958 — — FHLB stock 1,437 1,437 1,437 — — Other investments 3,000 3,000 3,000 — — Loans held for sale 6,071 6,260 6,260 — — Loans receivable, net 886,662 892,495 — — 892,495 Accrued interest receivable 3,598 3,598 3,598 — — Financial Liabilities Certificates of deposit 165,655 166,852 — — 166,852 Accrued interest payable 333 333 333 — — 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 Certificates of deposit 141,808 140,831 — — 140,831 Accrued interest payable 225 225 225 — — 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, 2019 | |
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 $ 14,384 $ 14,185 $ 13,841 $ 13,315 Interest expense (1,233 ) (1,248 ) (1,113 ) (971 ) Net interest income 13,151 12,937 12,728 12,344 Non-interest income 3,597 3,538 3,940 3,266 Non-interest expense (1) (8,774 ) (8,967 ) (9,277 ) (8,562 ) Income before income taxes 7,974 7,508 7,391 7,048 Provision for income taxes 1,639 1,552 1,277 1,433 Net income $ 6,335 $ 5,956 $ 6,114 $ 5,615 Net income per common share Basic $ 0.76 $ 0.71 $ 0.74 $ 0.68 Diluted (2) $ 0.75 $ 0.70 $ 0.72 $ 0.66 __________________________________________ (1) During the quarters ended December 31, 2018, March 31, 2019, June 30, 2019 and September 30, 2019 the Company incurred expenses related to the acquisition of South Sound Bank of $64 , $55 , $328 , and $15 , 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 $ 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers Revenue from Contracts with Customers | 12 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers In accordance with ASC 606, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. All of the Company's revenue from contracts with customers in the scope of ASC 606 is recognized in non-interest income with the exception of gains on sale of OREO and gains on sales/disposition of premises and equipment, which are included in non-interest expense and were not significant for the year ended September 30, 2019. For the year ended September 30, 2019, the Company recognized $4,904,000 in services charges on deposits, $4,036,000 in ATM and debit card interchange fees, $197,000 in escrow fees and $46,000 in fee income from non-deposit investment sales, all considered within the scope of ASC 606. Descriptions of the Company's revenue-generating activities that are within the scope of ASC 606 are as follows: • Service Charges on Deposits: The Company earns fees from its deposit customers from a variety of deposit products and services. Non-transaction based fees such as account maintenance fees and monthly statement fees are considered to be provided to the customer under a day-to-day contract with ongoing renewals. Revenue for these non-transaction fees are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Transaction based-fees such as non-sufficient fund charges, stop payment charges and wire fees are recognized at the time the transaction is executed as the contract duration does not extend beyond the service performed. • ATM and Debit Card Interchange Transaction Fees: The Company earns fees from cardholder transactions conducted through third party payment network providers which consist of interchange fees earned from the payment networks as a debit card issuer. These fees are recognized when the transaction occurs, but may settle on a daily or monthly basis. • Escrow Fees: The Company earns fees from real estate escrow contracts with customers. The Company receives and disburses money and/or property per the customer's contract. Fees are recognized when the escrow contract closes. • Fee income from Non-Deposit Investment Sales: The Company earns fees from contracts with customers for investment activities. Revenues are generally recognized on a monthly basis and are generally based on a percentage of the customer's assets under management or based on investment solutions that are implemented for the customer. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
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 24 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 servicing rights, the valuation of OREO, the valuation of assets acquired and liabilities assumed in the South Sound Acquisition and the valuation of goodwill for potential impairment. |
Reclassification Policy | Certain prior year amounts have been reclassified to conform to the 2019 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 60 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 | Investments in debt securities are classified upon acquisition as held to maturity or available for sale. Investments in debt 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. Investments in debt 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 debt securities available for sale that are deemed to be other than temporary are recognized in earnings when identified. The fair value of the debt security then becomes the new cost basis. For individual debt 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 debt 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 debt 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 debt security’s cost basis and its fair value at the consolidated balance sheet date. For individual debt 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, 2019 and 2018. |
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 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, 2019 or 2018 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, 2019. 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, 2019, management believes that there were no events or changes in the circumstances since May 31, 2019 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. Servicing rights are capitalized at estimated fair value when acquired through the origination of loans that are subsequently sold with the servicing rights retained. Servicing rights are amortized to servicing income on loans sold approximately in proportion to and over the period of estimated net servicing income. The value of servicing rights 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 servicing rights must be stratified by one or more predominant risk characteristics of the underlying loans. The Company stratifies its capitalized servicing rights 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 servicing rights 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, 2015. |
ESOP | The Bank sponsors a leveraged ESOP; however, all ESOP debt was fully repaid during the year ended September 30, 2019. The debt of the ESOP was payable to Timberland Bancorp, was recorded as other borrowed funds of the Bank, and was eliminated in the consolidated financial statements. The shares of the Company's common stock pledged as collateral for the ESOP's debt were reported as unearned shares issued to the ESOP in the consolidated financial statements. As shares were released from collateral, compensation expense was recorded equal to the average market price of the shares for the period, and the shares became available for net income per common share calculations. Dividends paid on unallocated shares reduced 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 ASU 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 was 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 using the modified retrospective approach. Therefore, the comparative information has not been adjusted and continues to be reported under the superseded ASC 605. There was no cumulative effect adjustment as of October 1, 2018, and there were no material changes to the timing or amount of revenue recognized for the year ended September 30, 2019; however, additional disclosures were incorporated in the footnotes upon adoption. The majority of the Company's revenue is comprised of interest income from financial assets, which is explicitly excluded from the scope of ASC 606. The Company elected to apply the practical expedient pursuant to ASC 606 and therefore does not disclose information about remaining performance obligations that have an original expected term of one year or less and allows the Company to expense costs related to obtaining a contract as incurred when the amortization period would have been one year or less. See Note 23 for additional information. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 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 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 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 2016-01 was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted ASU 2016-01 on October 1, 2018. As required by ASU 2016-01, on October 1, 2018 the Company recorded a one-time cumulative effect adjustment of $63,000 representing net unrealized losses on equity securities (mutual funds) between accumulated other comprehensive loss and retained earnings on the accompanying consolidated balance sheet. Additionally, the fair values of financial instruments for disclosure purposes were computed using an exit price notion and deposits with no stated maturity are no longer included in the fair value disclosures in Note 21. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which created FASB ASC Topic 842 ("ASC 842") and 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 ASC 842 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 generally on a 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. ASC 842 also changes disclosure requirements related to leasing activities and requires certain qualitative disclosures along with specific quantitative disclosures. ASC 842 also provides an optional transition method for adoption, under which an entity initially applies ASC 842 at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity's reporting for the comparative periods presented in the financial statements in which it adopts ASC 842 will continue to be in accordance with current GAAP. ASC 842 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early application of ASC 842 is permitted. The Company adopted the provisions of ASC 842 effective October 1, 2019 utilizing the optional transition method and will not restate comparative periods. The Company also elected the package of practical expedients permitted under ASC 842's transition guidance, which allows the Company to carryforward its historical lease classifications and its assessment as to whether a contract is or contains a lease. The Company also elected to not recognize lease assets and lease liabilities for leases with an initial term of 12 months or less. The Company expects the adoption of ASC 842 will result in an increase in other assets and an increase in other liabilities of approximately $2.9 million . The Company does not expect the adoption of ASC 842 to have a material impact on its future consolidated statements of income. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses , as amended by ASU 2018-19, ASU 2019-04 and ASU 2019-05. 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 2016-13 also changes the accounting for purchased credit-impaired debt securities and loans. ASU 2016-13 retains many of the current disclosure requirements in GAAP and expands certain disclosure requirements. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, 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 2016-13 and has begun 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 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 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 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 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 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 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 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 2017-09 was 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 2017-09 did not have a material impact on the Company's consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This ASU was issued to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Previously, these awards were recorded at the fair value of consideration received or the fair value of the equity instruments issued and were measured at the earlier of the commitment date or the date performance was completed. The amendments in this ASU require nonemployee share-based payment awards to be measured at the grant-date fair value of the equity instrument. ASU 2018-07 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, but no earlier than an entity's adoption of ASC 606. The adoption of ASU 2018-07 is not expected to have a material impact on the Company's future consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This ASU modifies the disclosure requirements for fair value measurements. The following disclosure requirements were removed from ASC Topic 820, Fair Value Measurement : (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; and (3) the valuation process for Level 3 fair value measurements. This ASU clarifies that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. This ASU adds the following disclosure requirements for Level 3 measurements: (1) changes in unrealized gains and losses for the period included in other comprehensive income for the recurring Level 3 fair value measurements held at the end of the reporting period, and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for any removed or modified disclosures. The adoption of ASU 2018-13 is not expected to have a material impact on the Company's future consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The amendments in this ASU broaden the scope of ASC Subtopic 350-40 to include costs incurred to implement a hosting arrangement that is a service contract. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred, consistent with the accounting for internal-use software costs. The amendments in this ASU result in consistent capitalization of implementation costs of a hosting arrangement that is a service contract and implementation costs incurred to develop or obtain internal use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this ASU. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The adoption of ASU 2018-15 is not expected to have a material impact on the Company's future consolidated financial statements. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | For illustrative purposes only, the following table presents certain unaudited pro forma information for the years ended September 30, 2019 and 2018. This unaudited estimated pro forma information was calculated as if South Sound Bank had been acquired as of the beginning of the fiscal year ended September 30, 2018. The unaudited estimated pro forma information combines the historical results of South Sound Bank with the Company's consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the transaction occurred at the beginning of the fiscal year ended September 30, 2018. The unaudited pro forma information does not consider any changes to the provision for loan losses resulting from recording loans at fair value. Additionally, the Company expects to achieve further operating cost savings and other business synergies, including revenue growth as a result of the acquisition, which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented. Pro Forma for the Year Ended September 30, 2019 2018 (Dollars in thousands, except per share amounts) Total revenues (net interest income plus non-interest income) $ 65,501 $ 59,184 Net income 24,385 18,825 Basic net income per common share 2.93 2.28 Diluted net income per common share 2.88 2.23 The following table summarizes the fair value of consideration paid, the estimated fair values of assets acquired and liabilities assumed as of the acquisition date, and the resulting goodwill relating to the transaction: At October 1, 2018 Book Value Fair Value Adjustment Estimated Fair Value (Dollars in thousands) Total acquisition consideration $ 35,170 Recognized amounts of identifiable assets acquired and liabilities assumed Identifiable assets acquired: Cash and cash equivalents $ 21,187 $ — 21,187 CDs held for investment 2,973 — 2,973 FHLB stock 205 — 205 Investment securities held to maturity 19,891 (189 ) 19,702 Investment securities available for sale 5,022 — 5,022 Loans receivable 123,627 (2,083 ) 121,544 Premises and equipment 3,225 112 3,337 OREO 25 — 25 Accrued interest receivable 554 — 554 BOLI 2,629 — 2,629 CDI — 2,483 2,483 Servicing rights 285 (4 ) 281 Other assets 1,087 (511 ) 576 Total assets 180,710 (192 ) 180,518 Liabilities assumed: Deposits 151,378 160 151,538 Other liabilities and accrued expenses 3,291 — 3,291 Total liabilities assumed 154,669 160 154,829 Total identifiable net assets acquired $ 26,041 $ (352 ) 25,689 Goodwill recognized $ 9,481 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Marketable Securities | Held to maturity and available for sale investment securities were as follows as of September 30, 2019 and 2018 (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2019 Held to Maturity Mortgage-backed securities ("MBS"): U.S. government agencies $ 27,786 $ 999 $ (2 ) $ 28,783 Private label residential 317 490 (1 ) 806 U.S. Treasury and U.S. government agency securities 2,999 — (8 ) 2,991 Total $ 31,102 $ 1,489 $ (11 ) $ 32,580 Available for Sale MBS: U.S. government agencies $ 22,418 $ 114 $ — $ 22,532 Total $ 22,418 $ 114 $ — $ 22,532 September 30, 2018 Held to Maturity 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 |
Unrealized Gain (Loss) on Investments | Held to maturity investment securities with unrealized losses were as follows as of September 30, 2019 (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 $ 291 $ (1 ) 2 $ 76 $ (1 ) 6 $ 367 $ (2 ) Private label residential — — — 23 (1 ) 5 23 (1 ) U.S. Treasury and U.S. government agency securities — — — 2,991 (8 ) 1 2,991 (8 ) Total $ 291 $ (1 ) 2 $ 3,090 $ (10 ) 12 $ 3,381 $ (11 ) 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 ) |
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, 2019 , 2018 and 2017 : Range Weighted Minimum Maximum Average September 30, 2019 Constant prepayment rate 6.00 % 15.00 % 10.67 % Collateral default rate 3.00 % 19.70 % 10.40 % Loss severity rate — % 10.59 % 4.07 % 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 % |
Schedule of Other than Temporary Impairments | The following table presents the OTTI recoveries for the years ended September 30, 2019 , 2018 and 2017 (dollars in thousands): 2019 2018 2017 Held To Maturity Held To Maturity Held To Maturity Total recoveries $ 71 $ 73 $ 38 Adjustment for portion of OTTI transferred from other comprehensive income (loss) before income taxes (1) (12 ) (5 ) (5 ) Net recoveries recognized in earnings (2) $ 59 $ 68 $ 33 ________________________ (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, 2019 , 2018 and 2017 (dollars in thousands): 2019 2018 2017 Balance, beginning of year $ 1,153 $ 1,301 $ 1,505 Additions: Additional increases to the amount related to credit loss for which OTTI was previously recognized 13 14 18 Subtractions: Realized losses previously recorded as credit losses (23 ) (80 ) (171 ) Recovery of prior credit loss (72 ) (82 ) (51 ) Balance, end of year $ 1,071 $ 1,153 $ 1,301 |
Schedule of Contractual Maturities of Debt Securities | The contractual maturities of debt securities at September 30, 2019 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 $ 3,025 $ 3,017 $ — $ — Due after one year to five years 495 498 145 145 Due after five years to ten years 5,893 6,272 129 130 Due after ten years 21,689 22,793 22,144 22,257 Total $ 31,102 $ 32,580 $ 22,418 $ 22,532 |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 (dollars in thousands): 2019 2018 Mortgage loans: One- to four-family $ 132,661 $ 115,941 Multi-family 76,036 61,928 Commercial 419,117 345,113 Construction – custom and owner/builder 128,848 119,555 Construction – speculative one- to four-family 16,445 15,433 Construction – commercial 39,566 39,590 Construction – multi-family 36,263 10,740 Construction – land development 2,404 3,040 Land 30,770 25,546 Total mortgage loans 882,110 736,886 Consumer loans: Home equity and second mortgage 40,190 37,341 Other 4,312 3,515 Total consumer loans 44,502 40,856 Commercial business loans 64,764 43,053 Total loans receivable 991,376 820,795 Less: Undisbursed portion of construction loans in process 92,226 83,237 Deferred loan origination fees, net 2,798 2,637 Allowance for loan losses 9,690 9,530 104,714 95,404 Loans receivable, net $ 886,662 $ 725,391 |
Schedule of Activity in Related Party Loans | Activity in related party loans during the years ended September 30, 2019 , 2018 and 2017 was as follows (dollars in thousands): 2019 2018 2017 Balance, beginning of year $ 119 $ 741 $ 230 New loans or borrowings 1 368 592 Repayments and reclassifications (26 ) (990 ) (81 ) Balance, end of year $ 94 $ 119 $ 741 |
Schedule of Allowance for Loan Losses | The following table sets forth information for the year ended September 30, 2019 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 $ 1,086 $ (23 ) $ — $ 104 $ 1,167 Multi-family 433 48 — — 481 Commercial 4,248 (260 ) — 166 4,154 Construction – custom and owner/builder 671 82 — 2 755 Construction – speculative one- to four-family 178 34 — — 212 Construction – commercial 563 (225 ) — — 338 Construction – multi-family 135 240 — — 375 Construction – land development 49 18 — — 67 Land 844 (116 ) (49 ) 18 697 Consumer loans: Home equity and second mortgage 649 (21 ) (5 ) — 623 Other 117 (19 ) (5 ) 6 99 Commercial business loans 557 242 (102 ) 25 722 Total $ 9,530 $ — $ (161 ) $ 321 $ 9,690 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 |
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, 2019 (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 $ — $ 1,167 $ 1,167 $ 1,192 $ 131,469 $ 132,661 Multi-family — 481 481 — 76,036 76,036 Commercial — 4,154 4,154 3,190 415,927 419,117 Construction – custom and owner/ builder — 755 755 — 75,411 75,411 Construction – speculative one- to four-family — 212 212 — 10,779 10,779 Construction – commercial — 338 338 — 24,051 24,051 Construction – multi-family — 375 375 — 19,256 19,256 Construction – land development — 67 67 — 1,803 1,803 Land 27 670 697 204 30,566 30,770 Consumer loans: Home equity and second mortgage — 623 623 603 39,587 40,190 Other 17 82 99 23 4,289 4,312 Commercial business loans 128 594 722 725 64,039 64,764 Total $ 172 $ 9,518 $ 9,690 $ 5,937 $ 893,213 $ 899,150 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 |
Past Due Status of Loans Receivable | The following table presents an analysis of loans by aging category and portfolio segment at September 30, 2019 (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 $ — $ 286 $ 699 $ — $ 985 $ 131,676 $ 132,661 Multi-family — — — — — 76,036 76,036 Commercial 94 218 779 — 1,091 418,026 419,117 Construction – custom and owner/ builder — — — — — 75,411 75,411 Construction – speculative one- to four-family — — — — — 10,779 10,779 Construction – commercial — — — — — 24,051 24,051 Construction – multi-family — — — — — 19,256 19,256 Construction – land development — — — — — 1,803 1,803 Land 5 193 204 — 402 30,368 30,770 Consumer loans: Home equity and second mortgage 94 — 603 — 697 39,493 40,190 Other — — 23 — 23 4,289 4,312 Commercial business loans — 2 725 — 727 64,037 64,764 Total $ 193 $ 699 $ 3,033 $ — $ 3,925 $ 895,225 $ 899,150 __________________ (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, 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. |
Financing Receivable Credit Quality Indicators | The following table presents an analysis of loans by credit quality indicator and portfolio segment at September 30, 2019 (dollars in thousands): Loan Grades Pass Watch Special Mention Substandard Total Mortgage loans: One- to four-family $ 129,748 $ 296 $ 562 $ 2,055 $ 132,661 Multi-family 76,036 — — — 76,036 Commercial 405,165 11,944 683 1,325 419,117 Construction – custom and owner / builder 75,178 233 — — 75,411 Construction – speculative one- to four-family 10,779 — — — 10,779 Construction – commercial 24,051 — — — 24,051 Construction – multi-family 19,256 — — — 19,256 Construction – land development 1,659 — — 144 1,803 Land 28,390 952 1,217 211 30,770 Consumer loans: Home equity and second mortgage 39,364 41 — 785 40,190 Other 4,257 33 — 22 4,312 Commercial business loans 63,669 232 85 778 64,764 Total $ 877,552 $ 13,731 $ 2,547 $ 5,320 $ 899,150 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 |
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, 2019 (dollars in thousands): September 30, 2019 For the Year Ended September 30, 2019 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 $ 1,192 $ 1,236 $ — $ 1,110 $ 71 $ 62 Commercial 3,190 3,190 — 2,920 227 192 Land 63 126 — 100 3 3 Consumer loans: Home equity and second mortgage 603 603 — 459 — — Commercial business loans 189 291 — 142 30 30 Subtotal 5,237 5,446 — 4,731 331 287 With an allowance recorded: Mortgage loans: Land 141 141 27 246 — — Consumer loans: Other 23 23 17 10 — — Commercial business loans 536 536 128 350 30 30 Subtotal 700 700 172 606 30 30 Total: Mortgage loans: One- to four-family 1,192 1,236 — 1,110 71 62 Commercial 3,190 3,190 — 2,920 227 192 Land 204 267 27 346 3 3 Consumer loans: Home equity and second mortgage 603 603 — 459 — — Other 23 23 17 10 — — Commercial business loans 725 827 128 492 60 60 Total $ 5,937 $ 6,146 $ 172 $ 5,337 $ 361 $ 317 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 Unpaid Principal Related Average Interest Cash Basis 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 |
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, 2019 and 2018 (dollars in thousands): 2019 Accruing Non- Accrual Total Mortgage loans: One- to four-family $ 493 $ 141 $ 634 Commercial 2,410 — 2,410 Consumer loans: Home equity and second mortgage — 82 82 Commercial business loans — 143 143 Total $ 2,903 $ 366 $ 3,269 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 |
Troubled Debt Restructurings on Financing Receivables | 2019 Number of Contracts Pre-Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment End of Period Balance Home equity and second mortgage loan (1) 1 $ 85 $ 85 $ 82 Total 1 $ 85 $ 85 $ 82 2018 Land loans (2) 1 $ 244 $ 155 $ 153 Commercial business loans (1) 2 183 183 170 Total 3 $ 427 $ 338 $ 323 (1) Modifications were a result of reduction in interest rates or monthly payment amounts. (2) Modification was a result of a reduction in principal balance. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment consisted of the following at September 30, 2019 and 2018 (dollars in thousands): 2019 2018 Land $ 5,404 $ 4,400 Buildings and improvements 23,847 20,636 Furniture and equipment 9,012 8,026 Property held for future expansion 334 129 Construction and purchases in progress 338 566 38,935 33,757 Less accumulated depreciation 16,105 14,804 Premises and equipment, net $ 22,830 $ 18,953 |
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, 2019 are as follows (dollars in thousands): 2020 $ 315 2021 229 2022 35 Total minimum payments required $ 579 |
OREO and Other Repossessed As_2
OREO and Other Repossessed Assets (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 (dollars in thousands): 2019 2018 Amount Number Number Balance, beginning of year $ 1,913 12 $ 3,301 16 Addition due to South Sound Acquisition 25 1 — — Other additions 293 2 324 2 Writedowns (24 ) — (248 ) — Sales (524 ) (3 ) (1,464 ) (6 ) Balance, end of year $ 1,683 12 $ 1,913 12 |
Goodwill and CDI (Tables)
Goodwill and CDI (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Amortization expense for the CDI for fiscal years ending subsequent to September 30, 2019 is estimated to be as follows (dollars in thousands): 2020 $ 406 2021 361 2022 316 2023 271 2024 226 Thereafter 451 Total $ 2,031 The following table presents the change in the recorded amount of goodwill for the year ended September 30, 2019 (dollars in thousands). There were no changes to the recorded amount of goodwill for the years ended September 30, 2018 and 2017. Balance, beginning of year $ 5,650 Addition as a result of the South Sound Acquisition (see Note 2) 9,481 Balance, end of year $ 15,131 |
Servicing Rights (Tables)
Servicing Rights (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Transfers and Servicing [Abstract] | |
Analysis of the changes in MSRs | The following is an analysis of the changes in SBA servicing rights for the years ended September 30, 2019, 2018 and 2017 (dollars in thousands): 2019 2018 2017 Balance, beginning of year $ 6 $ 2 $ 3 Additions due to South Sound Acquisition 281 — — Other additions 2 7 — Amortization (83 ) (3 ) (1 ) Valuation allowance (4 ) — — Balance, end of year $ 202 $ 6 $ 2 The following is an analysis of the changes in Freddie Mac servicing rights for the years ended September 30, 2019, 2018 and 2017 (dollars in thousands): 2019 2018 2017 Balance, beginning of year $ 2,022 $ 1,823 $ 1,570 Additions 747 687 739 Amortization (563 ) (488 ) (486 ) Balance, end of year $ 2,206 $ 2,022 $ 1,823 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposits consisted of the following at September 30, 2019 and 2018 (dollars in thousands): 2019 2018 Non-interest-bearing demand $ 296,472 $ 233,258 NOW checking 297,055 225,290 Savings 164,506 151,404 Money market 144,539 137,746 Certificates of deposit 165,655 141,808 Total $ 1,068,227 $ 889,506 |
Scheduled maturities of certificates of deposit for future years | Scheduled maturities of certificates of deposit for fiscal years ending subsequent to September 30, 2019 are as follows (dollars in thousands): 2020 $ 92,266 2021 38,724 2022 17,746 2023 8,113 2024 8,806 Total $ 165,655 |
Schedule of Interest Expense on Deposits | Interest expense on deposits by account type was as follows for the years ended September 30, 2019 , 2018 and 2017 (dollars in thousands): 2019 2018 2017 NOW checking $ 840 $ 451 $ 460 Savings 106 85 78 Money market 1,119 722 434 Certificates of deposit 2,500 1,520 1,246 Total $ 4,565 $ 2,778 $ 2,218 |
Other Liabilities and Accrued_2
Other Liabilities and Accrued Expenses: Schedule of Other Liabilities and Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Other Liabilities and Accrued Expenses | Other liabilities and accrued expenses were comprised of the following at September 30, 2019 and 2018 (dollars in thousands): 2019 2018 Accrued deferred compensation, profit sharing plans and bonuses payable $ 3,131 $ 1,235 Accrued interest payable on deposits 333 225 Accounts payable and accrued expenses - other 4,374 2,667 Total other liabilities and accrued expenses $ 7,838 $ 4,127 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 , 2018 and 2017 were as follows (dollars in thousands): 2019 2018 2017 Current: Federal $ 5,198 $ 4,900 $ 6,656 State — 4 35 Deferred 703 797 385 Provision for income taxes $ 5,901 $ 5,701 $ 7,076 |
Schedule of Deferred Tax Assets and Liabilities | The components of the Company’s deferred tax assets and liabilities at September 30, 2019 and 2018 were as follows (dollars in thousands): 2019 2018 Deferred Tax Assets Allowance for loan losses $ 1,550 $ 2,021 Allowance for OREO losses 218 311 Unearned ESOP shares — 32 Core deposit intangible — 31 OTTI credit impairment on investment securities 97 104 Accrued interest on loans 76 10 Net unrealized losses on investment securities — 42 Deferred compensation and bonuses 520 56 Reserve for loan commitments 51 43 Other 82 29 Total deferred tax assets 2,594 2,679 Deferred Tax Liabilities Goodwill 1,187 1,107 Servicing rights 506 426 Depreciation 494 283 Loan fees/costs 267 121 FHLB stock dividends 82 82 Prepaid expenses 70 74 Purchase accounting adjustment 110 — Net unrealized gains on investment securities and investments in equity securities 15 — Other — 2 Total deferred tax liabilities 2,731 2,095 Net deferred tax assets (liabilities) $ (137 ) $ 584 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes for the years ended September 30, 2019 , 2018 and 2017 differs from that computed at the federal statutory corporate tax rate as follows (dollars in thousands): 2019 2018 2017 Expected federal income tax provision at statutory rate $ 6,283 $ 5,500 $ 7,435 Net impact of the Tax Act — 548 — BOLI income (345 ) (134 ) (191 ) Dividends on ESOP (73 ) (71 ) (102 ) Stock options tax effect (87 ) (157 ) (188 ) Other, net 123 15 122 Provision for income taxes $ 5,901 $ 5,701 $ 7,076 |
Employee Stock Ownership and _2
Employee Stock Ownership and 401(k) Plan (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Shares Held by the ESOP | Shares held by the ESOP as of September 30, 2019 , 2018 and 2017 were classified as follows: 2019 2018 2017 Unallocated shares — 17,639 52,905 Shares released for allocation 425,281 451,644 489,665 Total ESOP shares 425,281 469,283 542,570 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Stock Option Activity | Stock option activity for the years ended September 30, 2019 , 2018 and 2017 is summarized as follows: Number of Weighted Average 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 Options granted 46,840 27.14 Options exercised (43,856 ) 9.14 Options forfeited (5,500 ) 19.89 Outstanding September 30, 2019 378,304 $ 18.15 |
Schedule of Fair Value Assumptions | The weighted average assumptions for options granted during the years ended September 30, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 Expected volatility 29 % 17 % 16 % Expected life (in years) 5 5 5 Expected dividend yield 3.28 % 2.61 % 1.85 % Risk free interest rate 1.53 % 2.97 % 1.89 % Grant date fair value per share $ 5.12 $ 4.48 $ 3.84 |
Schedule of Stock Option Plans, by Exercise Price Range | Additional information regarding options outstanding at September 30, 2019 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 $ 4.33 0.9 2,500 $ 4.33 0.9 5.86 - 6.00 19,100 5.97 3.1 19,100 5.97 3.1 9.00 49,975 9.00 4.1 49,975 9.00 4.1 10.26 - 10.71 110,839 10.58 5.5 87,589 10.57 5.5 15.67 48,000 15.67 7.0 27,000 15.67 7.0 27.14 46,840 27.14 10.0 — N/A N/A 29.69 55,600 29.69 8.0 22,300 29.69 8.0 31.80 45,450 31.80 9.0 9,090 31.80 9.0 378,304 $ 18.15 6.7 217,554 $ 13.21 5.5 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Supply Commitment | A summary of the Company’s commitments at September 30, 2019 and 2018 is as follows (dollars in thousands): 2019 2018 Undisbursed portion of construction loans in process (see Note 5) $ 92,226 $ 83,237 Undisbursed lines of credit 80,184 49,525 Commitments to extend credit 16,578 17,665 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [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, 2019 and 2018 assuming Timberland Bancorp was subject to regulatory guidelines for bank holding companies with $3.0 billion or more in assets (dollars in thousands): 2019 2018 Amount Ratio Amount Ratio Leverage Capital Ratio: Tier 1 capital $ 155,468 12.7 % $ 120,175 12.0 % Risk-based Capital Ratios: Common equity Tier 1 capital 155,468 18.4 120,175 17.1 Tier 1 capital 155,468 18.4 120,175 17.1 Total capital 165,399 19.6 128,955 18.4 The following tables compare the Bank’s actual capital amounts at September 30, 2019 and 2018 to its minimum regulatory capital requirements and "Well Capitalized" regulatory capital at those dates (dollars in thousands): September 30, 2019 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 $ 152,926 12.5 % $ 49,044 4.0 % $ 61,305 5.0 % Risk-based Capital Ratios: Common equity Tier 1 capital 152,926 18.1 38,019 4.5 54,916 6.5 Tier 1 capital 152,926 18.1 50,692 6.0 67,589 8.0 Total capital 162,857 19.3 67,589 8.0 84,487 10.0 September 30, 2018 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 $ 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 |
Condensed Financial Informati_2
Condensed Financial Information - Parent Company Only (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets, Parent Company | Condensed Balance Sheets - September 30, 2019 and 2018 (dollars in thousands) 2019 2018 Assets Cash and cash equivalents: Cash and due from financial institutions $ 336 $ 306 Interest-bearing deposits in banks 2,555 2,588 Total cash and cash equivalents 2,891 2,894 Loan receivable from ESOP — 285 Investment in Bank 168,525 121,818 Other assets 15 15 Total assets $ 171,431 $ 125,012 Liabilities and shareholders’ equity Accrued expenses $ 364 $ 355 Shareholders’ equity 171,067 124,657 Total liabilities and shareholders’ equity $ 171,431 $ 125,012 |
Condensed Statements of Operations, Parent Company | Condensed Statements of Income - Years Ended September 30, 2019 , 2018 and 2017 (dollars in thousands) 2019 2018 2017 Operating income Interest on deposits in banks $ 67 $ 37 $ 27 Interest on loan receivable from ESOP 9 53 96 Dividends from Bank 6,607 4,429 1,390 Total operating income 6,683 4,519 1,513 Operating expenses 525 591 467 Income before income taxes and equity in undistributed income of Bank 6,158 3,928 1,046 Benefit for income taxes (169 ) (198 ) (385 ) Income before undistributed income of Bank 6,327 4,126 1,431 Equity in undistributed income of Bank 17,693 12,595 12,736 Net income $ 24,020 $ 16,721 $ 14,167 |
Condensed Statements of Cash Flows, Parent Company | Condensed Statements of Cash Flows - Years Ended September 30, 2019 , 2018 and 2017 (dollars in thousands) 2019 2018 2017 Cash flows from operating activities Net income $ 24,020 $ 16,721 $ 14,167 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of Bank (17,693 ) (12,595 ) (12,736 ) Earned ESOP shares 441 882 605 Stock option compensation expense 159 172 156 Other, net 9 280 33 Net cash provided by operating activities 6,936 5,460 2,225 Cash flows from investing activities Investment in Bank (14,915 ) (1,271 ) (930 ) Principal repayments on loan receivable from ESOP 285 536 493 Cash acquired, net of cash consideration paid in business combination 14,284 — — Net cash used in investing activities (346 ) (735 ) (437 ) Cash flows from financing activities Proceeds from exercise of stock options 401 318 332 Proceeds from exercise of stock warrant — — 2,496 Repurchase of common stock (499 ) — — Payment of dividends (6,495 ) (4,431 ) (3,641 ) Net cash used in financing activities (6,593 ) (4,113 ) (813 ) Net (decrease) increase in cash and cash equivalents (3 ) 612 975 Cash and cash equivalents Beginning of period 2,894 2,282 1,307 End of period $ 2,891 $ 2,894 $ 2,282 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 , 2018 and 2017 is as follows (dollars in thousands, except per share amounts): 2019 2018 2017 Basic net income per common share computation Numerator - net income to common shareholders $ 24,020 $ 16,721 $ 14,167 Denominator - weighted average common shares outstanding 8,318,928 7,334,577 7,136,690 Basic net income per common share $ 2.89 $ 2.28 $ 1.99 Diluted net income per common share computation Numerator - net income to common shareholders $ 24,020 $ 16,721 $ 14,167 Denominator - weighted average common shares outstanding 8,318,928 7,334,577 7,136,690 Effect of dilutive stock options (1) 149,298 191,767 163,773 Effect of dilutive stock warrant (2) — — 79,590 Weighted average common shares outstanding-assuming dilution 8,468,226 7,526,344 7,380,053 Diluted net income per common share $ 2.84 $ 2.22 $ 1.92 ___________________ (1) For the years ended September 30, 2019 , 2018 and 2017 , average options to purchase 102,920 , 29,581 and 1,117 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 Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019, 2018 and 2017 are as follows (dollars in thousands): Changes in fair value of available for sale securities [1] Changes in OTTI on held to maturity securities [1] Total [1] 2019 Balance of AOCI at the beginning of period $ (58 ) $ (71 ) $ (129 ) Other comprehensive income 85 31 116 Adoption of ASU 2016-01 63 — 63 Balance of AOCI at the end of period $ 90 $ (40 ) $ 50 2018 Balance of AOCI at the beginning of period $ (19 ) $ (105 ) $ (124 ) Other comprehensive loss (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 ) Other comprehensive income (23 ) 74 51 Balance of AOCI at the end of period $ (19 ) $ (105 ) $ (124 ) ___________________ [1] All amounts are net of income taxes. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 and 2018 are as follows (dollars in thousands): Estimated Fair Value September 30, 2019 Level 1 Level 2 Level 3 Total Available for sale investment securities MBS: U.S. government agencies $ — $ 22,532 $ — $ 22,532 Investments in equity securities Mutual funds 958 — — 958 Total $ 958 $ 22,532 $ — $ 23,490 September 30, 2018 Available for sale investment securities MBS: U.S. government agencies $ — $ 237 $ — $ 237 Mutual funds 917 — — 917 Total $ 917 $ 237 $ — $ 1,154 |
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, 2019 (dollars in thousands): Estimated Fair Value Impaired loans: Level 1 Level 2 Level 3 Mortgage loans: Land $ — $ — $ 114 Consumer loans: Other 6 Commercial business loans — — 408 Total impaired loans — — 528 Investment securities – held to maturity: MBS - Private label residential — 2 — OREO and other repossessed assets — — 1,683 Total $ — $ 2 $ 2,211 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 |
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, 2019 (dollars in thousands): Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range Impaired loans $ 528 Market approach Appraised value less estimated selling costs NA OREO and other repossessed assets 1,683 Market approach Lower of appraised value or listing price less estimated 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, 2018 (dollars in thousands): Estimated Fair Value Valuation Technique(s) Unobservable Input(s) Range Impaired loans $ 226 Market approach Appraised value less estimated selling costs NA OREO and other repossessed assets 1,913 Market approach Lower of appraised value or listing price less estimated 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, 2019 (dollars in thousands): Fair Value Measurements Using: Recorded Amount Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 143,015 $ 143,015 $ 143,015 $ — $ — CDs held for investment 78,346 78,346 78,346 — — Investment securities 53,634 55,112 3,949 51,163 — Investments in equity securities 958 958 958 — — FHLB stock 1,437 1,437 1,437 — — Other investments 3,000 3,000 3,000 — — Loans held for sale 6,071 6,260 6,260 — — Loans receivable, net 886,662 892,495 — — 892,495 Accrued interest receivable 3,598 3,598 3,598 — — Financial Liabilities Certificates of deposit 165,655 166,852 — — 166,852 Accrued interest payable 333 333 333 — — 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 Certificates of deposit 141,808 140,831 — — 140,831 Accrued interest payable 225 225 225 — — |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited): Selected financial data (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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 $ 14,384 $ 14,185 $ 13,841 $ 13,315 Interest expense (1,233 ) (1,248 ) (1,113 ) (971 ) Net interest income 13,151 12,937 12,728 12,344 Non-interest income 3,597 3,538 3,940 3,266 Non-interest expense (1) (8,774 ) (8,967 ) (9,277 ) (8,562 ) Income before income taxes 7,974 7,508 7,391 7,048 Provision for income taxes 1,639 1,552 1,277 1,433 Net income $ 6,335 $ 5,956 $ 6,114 $ 5,615 Net income per common share Basic $ 0.76 $ 0.71 $ 0.74 $ 0.68 Diluted (2) $ 0.75 $ 0.70 $ 0.72 $ 0.66 __________________________________________ (1) During the quarters ended December 31, 2018, March 31, 2019, June 30, 2019 and September 30, 2019 the Company incurred expenses related to the acquisition of South Sound Bank of $64 , $55 , $328 , and $15 , 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 $ 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 $346 , respectively. (2) The net income per common share amounts for the quarters do not add to the total for the fiscal year due to rounding. |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Business Acquisition [Line Items] | |||
Goodwill acquired | $ 9,481 | ||
South Sound Merger | |||
Business Acquisition [Line Items] | |||
Shares issued (shares) | 904,826 | ||
Issued, value assigned | $ 28,267 | ||
Business combination, share price (dollars per share) | $ 31.24 | ||
Cash paid | $ 6,903 | ||
Total merger consideration | 35,170 | ||
Goodwill acquired | $ 9,481 | ||
Acquisition related costs | 462 | $ 616 | |
Timberland Bank | South Sound Merger | |||
Business Acquisition [Line Items] | |||
Shares issued (in dollars per share) | $ 0.746 | ||
South Sound Bank | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 1,598 | ||
South Sound Bank | South Sound Merger | |||
Business Acquisition [Line Items] | |||
Shares issued (in dollars per share) | $ 5.68825 | ||
Data processing and telecommunications | South Sound Merger | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | 317 | ||
Professional fees | South Sound Bank | South Sound Merger | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 145 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies: Operations (Details) | 12 Months Ended |
Sep. 30, 2019branchsegment | |
Accounting Policies [Abstract] | |
Number of branches | branch | 24 |
Number of reportable operating segments | segment | 1 |
Business Combinations - Assets
Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Sep. 30, 2019 |
Business Acquisition [Line Items] | ||
Addition as a result of the South Sound Merger (see Note 2) | $ 9,481 | |
South Sound Merger | ||
Business Acquisition [Line Items] | ||
Total merger consideration | $ 35,170 | |
Addition as a result of the South Sound Merger (see Note 2) | 9,481 | |
Book Value | South Sound Merger | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 21,187 | |
CDs held for investment | 2,973 | |
FHLB stock | 205 | |
Investment securities held to maturity | 19,891 | |
Investment securities available for sale | 5,022 | |
Loans receivable | 123,627 | |
Premises and equipment | 3,225 | |
OREO | 25 | |
Accrued interest receivable | 554 | |
BOLI | 2,629 | |
CDI | 0 | |
MSRs | 285 | |
Other assets | 1,087 | |
Total assets | 180,710 | |
Deposits | 151,378 | |
Other liabilities and accrued expenses | 3,291 | |
Total liabilities assumed | 154,669 | |
Total identifiable net assets acquired | 26,041 | |
Fair Value Adjustment | South Sound Merger | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 0 | |
CDs held for investment | 0 | |
FHLB stock | 0 | |
Investment securities held to maturity | (189) | |
Investment securities available for sale | 0 | |
Loans receivable | (2,083) | |
Premises and equipment | 112 | |
OREO | 0 | |
Accrued interest receivable | 0 | |
BOLI | 0 | |
CDI | 2,483 | |
MSRs | (4) | |
Other assets | (511) | |
Total assets | (192) | |
Deposits | 160 | |
Other liabilities and accrued expenses | 0 | |
Total liabilities assumed | 160 | |
Total identifiable net assets acquired | (352) | |
Estimated Fair Value | South Sound Merger | ||
Business Acquisition [Line Items] | ||
Total merger consideration | 35,170 | |
Cash and cash equivalents | 21,187 | |
CDs held for investment | 2,973 | |
FHLB stock | 205 | |
Investment securities held to maturity | 19,702 | |
Investment securities available for sale | 5,022 | |
Loans receivable | 121,544 | |
Premises and equipment | 3,337 | |
OREO | 25 | |
Accrued interest receivable | 554 | |
BOLI | 2,629 | |
CDI | 2,483 | |
MSRs | 281 | |
Other assets | 576 | |
Total assets | 180,518 | |
Deposits | 151,538 | |
Other liabilities and accrued expenses | 3,291 | |
Total liabilities assumed | 154,829 | |
Total identifiable net assets acquired | 25,689 | |
Addition as a result of the South Sound Merger (see Note 2) | $ 9,481 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies: Cash (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Interest-bearing deposits in Federal Reserve Bank | $ 117,836 | $ 128,626 |
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 | 60 months | |
Interest-bearing deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Interest-bearing deposits in Federal Reserve Bank | $ 102,189 | $ 123,745 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Acquisition [Line Items] | |||||||||||
Net income | $ 6,335 | $ 5,956 | $ 6,114 | $ 5,615 | $ 4,422 | $ 4,416 | $ 4,269 | $ 3,614 | $ 24,020 | $ 16,721 | $ 14,167 |
Basic (in dollars per share) | $ 0.76 | $ 0.71 | $ 0.74 | $ 0.68 | $ 0.60 | $ 0.60 | $ 0.58 | $ 0.49 | $ 2.89 | $ 2.28 | $ 1.99 |
Diluted (in dollars per share) | $ 0.75 | $ 0.70 | $ 0.72 | $ 0.66 | $ 0.59 | $ 0.59 | $ 0.57 | $ 0.48 | $ 2.84 | $ 2.22 | $ 1.92 |
Pro Forma | South Sound Merger | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total revenues (net interest income plus non-interest income) | $ 65,501 | $ 59,184 | |||||||||
Net income | $ 24,385 | $ 18,825 | |||||||||
Basic (in dollars per share) | $ 2,930 | $ 2,280 | |||||||||
Diluted (in dollars per share) | $ 2,880 | $ 2,230 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies: FHLB Stock (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
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, 2019 | |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Chairman of the Board | |||
Related Party Transaction [Line Items] | |||
Related party transaction, legal fees | $ 69 | $ 94 | $ 99 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies: Change in Accounting Principles (Details) - USD ($) $ in Thousands | Oct. 01, 2019 | Sep. 30, 2019 | Oct. 01, 2018 | Sep. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect adjustment | $ 0 | |||
Other assets | $ 5,323 | $ 2,672 | ||
ASU 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect adjustment | $ 63 | |||
Forecast | ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other assets | $ 2,900 | |||
Other liabilities | $ 2,900 |
Restricted Assets (Details)
Restricted Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Federal Reserve Bank | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted assets | $ 1,898 | $ 1,609 |
Investment Securities_ Marketab
Investment Securities: Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Held to Maturity | ||
Amortized Cost | $ 31,102 | $ 12,810 |
Gross Unrealized Gains | 1,489 | 560 |
Gross Unrealized Losses | (11) | (106) |
Estimated Fair Value | 32,580 | 13,264 |
Available for Sale | ||
Amortized Cost | 1,231 | |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | (84) | |
Estimated Fair Value | 1,154 | |
Mortgage-backed Securities, U.S. government agencies | ||
Held to Maturity | ||
Amortized Cost | 27,786 | 1,385 |
Gross Unrealized Gains | 999 | 8 |
Gross Unrealized Losses | (2) | (21) |
Estimated Fair Value | 28,783 | 1,372 |
Available for Sale | ||
Amortized Cost | 22,418 | 231 |
Gross Unrealized Gains | 114 | 7 |
Gross Unrealized Losses | 0 | (1) |
Estimated Fair Value | 22,532 | 237 |
Mutual funds | ||
Available for Sale | ||
Amortized Cost | 1,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (83) | |
Estimated Fair Value | 917 | |
Mortgage-backed Securities, Private label residential | ||
Held to Maturity | ||
Amortized Cost | 317 | 460 |
Gross Unrealized Gains | 490 | 552 |
Gross Unrealized Losses | (1) | (2) |
Estimated Fair Value | 806 | 1,010 |
U.S. agency securities | ||
Held to Maturity | ||
Amortized Cost | 2,999 | 10,965 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (8) | (83) |
Estimated Fair Value | $ 2,991 | $ 10,882 |
Investment Securities_ Unrealiz
Investment Securities: Unrealized Gain (Loss) on Investments (Details) $ in Thousands | Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($)security |
Held-to-maturity Securities, Fair Value: | ||
Estimated Fair Value - Less Than 12 Months | $ 291 | $ 8,900 |
Estimated Fair Value - 12 Months or Longer | 3,090 | 3,049 |
Total Estimated Fair Value | 3,381 | 11,949 |
Held-to-maturity Securities, Gross Unrealized Losses | ||
Gross Unrealized Losses - Less Than 12 Months | (1) | (42) |
Gross Unrealized Losses - 12 Months or Longer | (10) | (64) |
Total Gross Unrealized Losses | $ (11) | $ (106) |
Held-to-maturity, Qty, Less Than 12 Months | security | 2 | 4 |
Held-to-maturity, Qty, 12 Months or Longer | security | 12 | 14 |
Estimated Fair Value - Less Than 12 Months | $ 34 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | |
Estimated Fair Value - 12 Months or Longer | 917 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (83) | |
Total Estimated Fair Value | 951 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (84) | |
Available-for-sale Securities, Gross Unrealized Losses: | ||
Available-for-sale, Qty, Less than 12 Months | security | 1 | |
Available-for-sale, Qty, 12 Months or Longer | security | 1 | |
Mortgage-backed Securities, U.S. government agencies | ||
Held-to-maturity Securities, Fair Value: | ||
Estimated Fair Value - Less Than 12 Months | $ 291 | $ 954 |
Estimated Fair Value - 12 Months or Longer | 76 | 64 |
Total Estimated Fair Value | 367 | 1,018 |
Held-to-maturity Securities, Gross Unrealized Losses | ||
Gross Unrealized Losses - Less Than 12 Months | (1) | (20) |
Gross Unrealized Losses - 12 Months or Longer | (1) | (1) |
Total Gross Unrealized Losses | $ (2) | $ (21) |
Held-to-maturity, Qty, Less Than 12 Months | security | 2 | 2 |
Held-to-maturity, Qty, 12 Months or Longer | security | 6 | 5 |
Estimated Fair Value - Less Than 12 Months | $ 34 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1) | |
Estimated Fair Value - 12 Months or Longer | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Total Estimated Fair Value | 34 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (1) | |
Available-for-sale Securities, Gross Unrealized Losses: | ||
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 | 23 | 50 |
Total Estimated Fair Value | 23 | 50 |
Held-to-maturity Securities, Gross Unrealized Losses | ||
Gross Unrealized Losses - Less Than 12 Months | 0 | 0 |
Gross Unrealized Losses - 12 Months or Longer | (1) | (2) |
Total Gross Unrealized Losses | $ (1) | $ (2) |
Held-to-maturity, Qty, Less Than 12 Months | security | 0 | 0 |
Held-to-maturity, Qty, 12 Months or Longer | security | 5 | 8 |
US Government Agencies Debt Securities | ||
Held-to-maturity Securities, Fair Value: | ||
Estimated Fair Value - Less Than 12 Months | $ 0 | $ 7,946 |
Estimated Fair Value - 12 Months or Longer | 2,991 | 2,935 |
Total Estimated Fair Value | 2,991 | 10,881 |
Held-to-maturity Securities, Gross Unrealized Losses | ||
Gross Unrealized Losses - Less Than 12 Months | 0 | (22) |
Gross Unrealized Losses - 12 Months or Longer | (8) | (61) |
Total Gross Unrealized Losses | $ (8) | $ (83) |
Held-to-maturity, Qty, Less Than 12 Months | security | 0 | 2 |
Held-to-maturity, Qty, 12 Months or Longer | security | 1 | 1 |
Mutual funds | ||
Held-to-maturity Securities, Gross Unrealized Losses | ||
Estimated Fair Value - Less Than 12 Months | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Estimated Fair Value - 12 Months or Longer | 917 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (83) | |
Total Estimated Fair Value | 917 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (83) | |
Available-for-sale Securities, Gross Unrealized Losses: | ||
Available-for-sale, Qty, Less than 12 Months | security | 0 | |
Available-for-sale, Qty, 12 Months or Longer | security | 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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
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 | 3.00% | 0.00% | 0.03% |
OTTI significant inputs - Loss severity rate | 0.00% | 0.00% | 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 | 19.70% | 10.42% | 10.75% |
OTTI significant inputs - Loss severity rate | 10.59% | 75.00% | 62.00% |
Weighted Average | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
OTTI significant inputs - Constant prepayment rate | 10.67% | 12.91% | 10.40% |
OTTI significant inputs - Collateral default rate | 10.40% | 5.03% | 4.84% |
OTTI significant inputs - Loss severity rate | 4.07% | 37.25% | 41.75% |
Investment Securities_ Schedu_2
Investment Securities: Schedule of Other than Temporary Impairments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Held to Maturity | ||||
Held To Maturity - total (OTTI) recoveries | $ 71 | $ 73 | $ 38 | |
Net recoveries on investment securities | 59 | 68 | 33 | |
Held-to-maturity Securities | ||||
Held to Maturity | ||||
Held To Maturity - total (OTTI) recoveries | 71 | 73 | 38 | |
Held To Maturity - adjustment for portion of OTTI recorded as (transferred from) other comprehensive income (before income taxes) | [1] | (12) | (5) | (5) |
Net recoveries on investment securities | [2] | $ 59 | $ 68 | $ 33 |
[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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Balance, beginning of year | $ 1,153 | $ 1,301 | $ 1,505 |
Additional increases to the amount related to credit loss for which OTTI was previously recognized | 13 | 14 | 18 |
Realized losses previously recorded as credit losses | (23) | (80) | (171) |
Recovery of prior credit loss | (72) | (82) | (51) |
Balance, end of year | $ 1,071 | $ 1,153 | $ 1,301 |
Investment Securities_ Narrativ
Investment Securities: Narrative-Realized Gains (Losses) (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($)security | Sep. 30, 2017USD ($)security | |
Investments [Abstract] | |||
Loss on sale of securities | $ 23 | $ 80 | $ 171 |
Held-to-maturity securities, realized loss, number of securities | security | 17 | 16 | 22 |
Security owned and pledged as collateral | $ 18,587 | $ 12,100 |
Investment Securities_ Schedu_3
Investment Securities: Schedule of Contractual maturities of debt securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Held-to-maturity Securities, Amortized Cost: | ||
Due within one year | $ 3,025 | |
Due after one year to five years | 495 | |
Due after five years to ten years | 5,893 | |
Due after ten years | 21,689 | |
Total | 31,102 | $ 12,810 |
Held-to-maturity Securities, Estimated Fair Value: | ||
Due within one year | 3,017 | |
Due after one year to five years | 498 | |
Due after five years to ten years | 6,272 | |
Due after ten years | 22,793 | |
Total | 32,580 | $ 13,264 |
Available-for-sale Securities, Amortized Cost: | ||
Due within one year | 0 | |
Due after one year to five years | 145 | |
Due after five years to ten years | 129 | |
Due after ten years | 22,144 | |
Total | 22,418 | |
Available-for-sale Securities, Estimated Fair Value: | ||
Due within one year | 0 | |
Due after one year to five years | 145 | |
Due after five years to ten years | 130 | |
Due after ten years | 22,257 | |
Total | $ 22,532 |
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, 2019 | Sep. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | $ 991,376 | $ 820,795 |
Undisbursed portion of construction loans in process | 92,226 | 83,237 |
Deferred loan origination fees | 2,798 | 2,637 |
Allowance for loan losses | 9,690 | 9,530 |
Less: Loans in process, Deferred fees and Allowance for loan losses | 104,714 | 95,404 |
Total loans receivable, net | 886,662 | 725,391 |
Unamortized discounts, loans receivable | 1,386 | |
Total mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 882,110 | 736,886 |
Mortgage loans, one-to-four family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 132,661 | 115,941 |
Mortgage loans, multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 76,036 | 61,928 |
Mortgage loans, commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 419,117 | 345,113 |
Mortgage loans, construction - custom and owner/builder | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 128,848 | 119,555 |
Mortgage loans, construction - speculative one-to-four family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 16,445 | 15,433 |
Mortgage loans, construction - commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 39,566 | 39,590 |
Mortgage loans, construction - multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 36,263 | 10,740 |
Mortgage loans - construction - land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 2,404 | 3,040 |
Mortgage loans, land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans | 30,770 | 25,546 |
Total consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans | 44,502 | 40,856 |
Consumer loans, home equity and second mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans | 40,190 | 37,341 |
Consumer loans, other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer loans | 4,312 | 3,515 |
Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial business loans | $ 64,764 | $ 43,053 |
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, 2019 | Sep. 30, 2018 | |
Receivables [Abstract] | ||
Loans secured by real estate | $ 922,300 | |
Undisbursed portion of construction loans in process | $ 92,226 | $ 83,237 |
Loans secured by real estate, percentage of total portfolio (as a percent) | 93.00% | |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Balance, beginning of year | $ 119 | $ 741 | $ 230 |
New loans or borrowings | 1 | 368 | 592 |
Repayments and reclassifications | (26) | (990) | (81) |
Balance, end of year | $ 94 | $ 119 | $ 741 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses: Loan Segment Risk Narrative (Details) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | $ 9,530 | $ 9,553 | $ 9,826 |
Provision for (Recapture of) Loan Losses | 0 | 0 | (1,250) |
Charge-offs | (161) | (56) | (133) |
Recoveries | 321 | 33 | 1,110 |
Allowance for loan losses, Ending Allowance | 9,690 | 9,530 | 9,553 |
Mortgage loans, one-to-four family | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 1,086 | 1,082 | 1,239 |
Provision for (Recapture of) Loan Losses | (23) | 4 | (178) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 104 | 0 | 21 |
Allowance for loan losses, Ending Allowance | 1,167 | 1,086 | 1,082 |
Mortgage loans, multi-family | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 433 | 447 | 473 |
Provision for (Recapture of) Loan Losses | 48 | (14) | (26) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Allowance for loan losses, Ending Allowance | 481 | 433 | 447 |
Mortgage loans, commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 4,248 | 4,184 | 4,384 |
Provision for (Recapture of) Loan Losses | (260) | 92 | (1,248) |
Charge-offs | 0 | (28) | (13) |
Recoveries | 166 | 0 | 1,061 |
Allowance for loan losses, Ending Allowance | 4,154 | 4,248 | 4,184 |
Mortgage loans, construction - custom and owner/builder | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 671 | 699 | 619 |
Provision for (Recapture of) Loan Losses | 82 | (28) | 80 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 2 | 0 | 0 |
Allowance for loan losses, Ending Allowance | 755 | 671 | 699 |
Mortgage loans, construction - speculative one-to-four family | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 178 | 128 | 130 |
Provision for (Recapture of) Loan Losses | 34 | 37 | (8) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 13 | 6 |
Allowance for loan losses, Ending Allowance | 212 | 178 | 128 |
Mortgage loans, construction - commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 563 | 303 | 268 |
Provision for (Recapture of) Loan Losses | (225) | 260 | 35 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Allowance for loan losses, Ending Allowance | 338 | 563 | 303 |
Mortgage loans, construction - multi-family | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 135 | 173 | 316 |
Provision for (Recapture of) Loan Losses | 240 | (38) | (143) |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Allowance for loan losses, Ending Allowance | 375 | 135 | 173 |
Mortgage loans - construction - land development | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 49 | 0 | |
Provision for (Recapture of) Loan Losses | 18 | 49 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for loan losses, Ending Allowance | 67 | 49 | 0 |
Mortgage loans, land | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 844 | 918 | 820 |
Provision for (Recapture of) Loan Losses | (116) | (71) | 189 |
Charge-offs | (49) | (22) | (110) |
Recoveries | 18 | 19 | 19 |
Allowance for loan losses, Ending Allowance | 697 | 844 | 918 |
Consumer loans, home equity and second mortgage | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 649 | 983 | 939 |
Provision for (Recapture of) Loan Losses | (21) | (334) | 44 |
Charge-offs | (5) | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Allowance for loan losses, Ending Allowance | 623 | 649 | 983 |
Consumer loans, other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 117 | 121 | 156 |
Provision for (Recapture of) Loan Losses | (19) | 1 | (28) |
Charge-offs | (5) | (6) | (10) |
Recoveries | 6 | 1 | 3 |
Allowance for loan losses, Ending Allowance | 99 | 117 | 121 |
Commercial business loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for loan losses, Beginning Allowance | 557 | 515 | 482 |
Provision for (Recapture of) Loan Losses | 242 | 42 | 33 |
Charge-offs | (102) | 0 | 0 |
Recoveries | 25 | 0 | 0 |
Allowance for loan losses, Ending Allowance | $ 722 | $ 557 | $ 515 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | $ 172 | $ 97 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 9,518 | 9,433 | ||
Allowance for Loan Losses, Total | 9,690 | 9,530 | $ 9,553 | $ 9,826 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 5,937 | 4,272 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 893,213 | 733,286 | ||
Loans receivable | 899,150 | 737,558 | ||
Mortgage loans, one-to-four family | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 1,167 | 1,086 | ||
Allowance for Loan Losses, Total | 1,167 | 1,086 | 1,082 | 1,239 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 1,192 | 1,054 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 131,469 | 114,887 | ||
Loans receivable | 132,661 | 115,941 | ||
Mortgage loans, multi-family | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 481 | 433 | ||
Allowance for Loan Losses, Total | 481 | 433 | 447 | 473 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 76,036 | 61,928 | ||
Loans receivable | 76,036 | 61,928 | ||
Mortgage loans, commercial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 4,154 | 4,248 | ||
Allowance for Loan Losses, Total | 4,154 | 4,248 | 4,184 | 4,384 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 3,190 | 2,446 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 415,927 | 342,667 | ||
Loans receivable | 419,117 | 345,113 | ||
Mortgage loans, construction - custom and owner/builder | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 755 | 671 | ||
Allowance for Loan Losses, Total | 755 | 671 | 699 | 619 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 75,411 | 67,024 | ||
Loans receivable | 75,411 | 67,024 | ||
Mortgage loans, construction - speculative one-to-four family | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 212 | 178 | ||
Allowance for Loan Losses, Total | 212 | 178 | 128 | 130 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 10,779 | 7,107 | ||
Loans receivable | 10,779 | 7,107 | ||
Mortgage loans, construction - commercial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 338 | 563 | ||
Allowance for Loan Losses, Total | 338 | 563 | 303 | 268 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 24,051 | 23,440 | ||
Loans receivable | 24,051 | 23,440 | ||
Mortgage loans, construction - multi-family | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 375 | 135 | ||
Allowance for Loan Losses, Total | 375 | 135 | 173 | 316 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 19,256 | 5,983 | ||
Loans receivable | 19,256 | 5,983 | ||
Mortgage loans - construction - land development | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 67 | 49 | ||
Allowance for Loan Losses, Total | 67 | 49 | 0 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 0 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 1,803 | 1,567 | ||
Loans receivable | 1,803 | 1,567 | ||
Mortgage loans, land | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 27 | 34 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 670 | 810 | ||
Allowance for Loan Losses, Total | 697 | 844 | 918 | 820 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 204 | 243 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 30,566 | 25,303 | ||
Loans receivable | 30,770 | 25,546 | ||
Consumer loans, home equity and second mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 623 | 649 | ||
Allowance for Loan Losses, Total | 623 | 649 | 983 | 939 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 603 | 359 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 39,587 | 36,982 | ||
Loans receivable | 40,190 | 37,341 | ||
Consumer loans, other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 17 | 0 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 82 | 117 | ||
Allowance for Loan Losses, Total | 99 | 117 | 121 | 156 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 23 | 0 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 4,289 | 3,515 | ||
Loans receivable | 4,312 | 3,515 | ||
Commercial business loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for Loan Losses, Individually Evaluated for Impairment | 128 | 63 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 594 | 494 | ||
Allowance for Loan Losses, Total | 722 | 557 | $ 515 | $ 482 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 725 | 170 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 64,039 | 42,883 | ||
Loans receivable | $ 64,764 | $ 43,053 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses: Past Due Status of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | ||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | $ 3,925 | $ 2,556 | ||
Loans receivable, Non-Accrual | 3,033 | [1] | 1,317 | [2] |
Loans receivable, Current | 895,225 | 735,002 | ||
Loans receivable | 899,150 | 737,558 | ||
30-59 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 193 | 1,223 | ||
60-89 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 699 | 16 | ||
Past Due 90 Days or More and Still Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans, one-to-four family | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 985 | 1,102 | ||
Loans receivable, Non-Accrual | 699 | [1] | 545 | [2] |
Loans receivable, Current | 131,676 | 114,839 | ||
Loans receivable | 132,661 | 115,941 | ||
Mortgage loans, one-to-four family | 30-59 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 557 | ||
Mortgage loans, one-to-four family | 60-89 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 286 | 0 | ||
Mortgage loans, one-to-four family | Past Due 90 Days or More and Still Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans, multi-family | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Loans receivable, Non-Accrual | 0 | [1] | 0 | [2] |
Loans receivable, Current | 76,036 | 61,928 | ||
Loans receivable | 76,036 | 61,928 | ||
Mortgage loans, multi-family | 30-59 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans, multi-family | 60-89 Days Past Due | ||||
Financing Receivable, 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, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans, commercial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 1,091 | 574 | ||
Loans receivable, Non-Accrual | 779 | [1] | 0 | [2] |
Loans receivable, Current | 418,026 | 344,539 | ||
Loans receivable | 419,117 | 345,113 | ||
Mortgage loans, commercial | 30-59 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 94 | 574 | ||
Mortgage loans, commercial | 60-89 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 218 | 0 | ||
Mortgage loans, commercial | Past Due 90 Days or More and Still Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans, construction - custom and owner/builder | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Loans receivable, Non-Accrual | 0 | [1] | 0 | [2] |
Loans receivable, Current | 75,411 | 67,024 | ||
Loans receivable | 75,411 | 67,024 | ||
Mortgage loans, construction - custom and owner/builder | 30-59 Days Past Due | ||||
Financing Receivable, 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, 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, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans, construction - speculative one-to-four family | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Loans receivable, Non-Accrual | 0 | [1] | 0 | [2] |
Loans receivable, Current | 10,779 | 7,107 | ||
Loans receivable | 10,779 | 7,107 | ||
Mortgage loans, construction - speculative one-to-four family | 30-59 Days Past Due | ||||
Financing Receivable, 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, 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, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans, construction - commercial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Loans receivable, Non-Accrual | 0 | [1] | 0 | [2] |
Loans receivable, Current | 24,051 | 23,440 | ||
Loans receivable | 24,051 | 23,440 | ||
Mortgage loans, construction - commercial | 30-59 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans, construction - commercial | 60-89 Days Past Due | ||||
Financing Receivable, 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, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans, construction - multi-family | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Loans receivable, Non-Accrual | 0 | [1] | 0 | [2] |
Loans receivable, Current | 19,256 | 5,983 | ||
Loans receivable | 19,256 | 5,983 | ||
Mortgage loans, construction - multi-family | 30-59 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans, construction - multi-family | 60-89 Days Past Due | ||||
Financing Receivable, 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, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans - construction - land development | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Loans receivable, Non-Accrual | 0 | [1] | 0 | [2] |
Loans receivable, Current | 1,803 | 1,567 | ||
Loans receivable | 1,803 | 1,567 | ||
Mortgage loans - construction - land development | 30-59 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans - construction - land development | 60-89 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans - construction - land development | Past Due 90 Days or More and Still Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Mortgage loans, land | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 402 | 283 | ||
Loans receivable, Non-Accrual | 204 | [1] | 243 | [2] |
Loans receivable, Current | 30,368 | 25,263 | ||
Loans receivable | 30,770 | 25,546 | ||
Mortgage loans, land | 30-59 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 5 | 40 | ||
Mortgage loans, land | 60-89 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 193 | 0 | ||
Mortgage loans, land | Past Due 90 Days or More and Still Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Consumer loans, home equity and second mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 697 | 401 | ||
Loans receivable, Non-Accrual | 603 | [1] | 359 | [2] |
Loans receivable, Current | 39,493 | 36,940 | ||
Loans receivable | 40,190 | 37,341 | ||
Consumer loans, home equity and second mortgage | 30-59 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 94 | 42 | ||
Consumer loans, home equity and second mortgage | 60-89 Days Past Due | ||||
Financing Receivable, 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, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Consumer loans, other | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 23 | 26 | ||
Loans receivable, Non-Accrual | 23 | [1] | 0 | [2] |
Loans receivable, Current | 4,289 | 3,489 | ||
Loans receivable | 4,312 | 3,515 | ||
Consumer loans, other | 30-59 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 10 | ||
Consumer loans, other | 60-89 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 16 | ||
Consumer loans, other | Past Due 90 Days or More and Still Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Commercial business loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 727 | 170 | ||
Loans receivable, Non-Accrual | 725 | [1] | 170 | [2] |
Loans receivable, Current | 64,037 | 42,883 | ||
Loans receivable | 64,764 | 43,053 | ||
Commercial business loans | 30-59 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 0 | 0 | ||
Commercial business loans | 60-89 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans receivable, Total Past Due | 2 | 0 | ||
Commercial business loans | Past Due 90 Days or More and Still Accruing | ||||
Financing Receivable, 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, 2019 | Sep. 30, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | $ 899,150 | $ 737,558 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 877,552 | 720,600 |
Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 13,731 | 10,653 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 2,547 | 3,123 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 5,320 | 3,182 |
Mortgage loans, one-to-four family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 132,661 | 115,941 |
Mortgage loans, one-to-four family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 129,748 | 113,148 |
Mortgage loans, one-to-four family | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 296 | 882 |
Mortgage loans, one-to-four family | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 562 | 581 |
Mortgage loans, one-to-four family | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 2,055 | 1,330 |
Mortgage loans, multi-family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 76,036 | 61,928 |
Mortgage loans, multi-family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 76,036 | 61,928 |
Mortgage loans, multi-family | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, multi-family | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, multi-family | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 419,117 | 345,113 |
Mortgage loans, commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 405,165 | 334,908 |
Mortgage loans, commercial | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 11,944 | 8,375 |
Mortgage loans, commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 683 | 988 |
Mortgage loans, commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,325 | 842 |
Mortgage loans, construction - custom and owner/builder | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 75,411 | 67,024 |
Mortgage loans, construction - custom and owner/builder | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 75,178 | 66,720 |
Mortgage loans, construction - custom and owner/builder | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 233 | 304 |
Mortgage loans, construction - custom and owner/builder | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - custom and owner/builder | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - speculative one-to-four family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 10,779 | 7,107 |
Mortgage loans, construction - speculative one-to-four family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 10,779 | 7,107 |
Mortgage loans, construction - speculative one-to-four family | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - speculative one-to-four family | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - speculative one-to-four family | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 24,051 | 23,440 |
Mortgage loans, construction - commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 24,051 | 23,440 |
Mortgage loans, construction - commercial | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - multi-family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 19,256 | 5,983 |
Mortgage loans, construction - multi-family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 19,256 | 5,983 |
Mortgage loans, construction - multi-family | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - multi-family | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans, construction - multi-family | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans - construction - land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,803 | 1,567 |
Mortgage loans - construction - land development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,659 | 1,567 |
Mortgage loans - construction - land development | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans - construction - land development | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Mortgage loans - construction - land development | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 144 | 0 |
Mortgage loans, land | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 30,770 | 25,546 |
Mortgage loans, land | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 28,390 | 22,810 |
Mortgage loans, land | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 952 | 988 |
Mortgage loans, land | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,217 | 1,505 |
Mortgage loans, land | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 211 | 243 |
Consumer loans, home equity and second mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 40,190 | 37,341 |
Consumer loans, home equity and second mortgage | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 39,364 | 36,697 |
Consumer loans, home equity and second mortgage | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 41 | 82 |
Consumer loans, home equity and second mortgage | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer loans, home equity and second mortgage | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 785 | 562 |
Consumer loans, other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 4,312 | 3,515 |
Consumer loans, other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 4,257 | 3,480 |
Consumer loans, other | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 33 | 0 |
Consumer loans, other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer loans, other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 22 | 35 |
Commercial business loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 64,764 | 43,053 |
Commercial business loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 63,669 | 42,812 |
Commercial business loans | Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 232 | 22 |
Commercial business loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 85 | 49 |
Commercial business loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | $ 778 | $ 170 |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Loan Losses: Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 5,237 | $ 3,949 | $ 3,830 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 700 | 323 | 3,162 |
Impaired Financing Receivable, Recorded Investment | 5,937 | 4,272 | 6,992 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 5,446 | 4,200 | 4,089 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 700 | 323 | 3,221 |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 6,146 | 4,523 | 7,310 |
Impaired Financing Receivable, Related Allowance | 172 | 97 | 476 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 4,731 | 4,304 | 5,963 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 606 | 1,603 | 5,260 |
Impaired Financing Receivable, Average Recorded Investment | 5,337 | 5,907 | 11,223 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 331 | 215 | 271 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 30 | 53 | 296 |
Impaired Financing Receivable, Interest Income Recognized | 361 | 268 | 567 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 287 | 175 | 218 |
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 30 | 42 | 237 |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 317 | 217 | 455 |
Mortgage loans, one-to-four family | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,192 | 1,054 | 1,443 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 | |
Impaired Financing Receivable, Recorded Investment | 1,192 | 1,054 | 1,443 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 1,236 | 1,200 | 1,589 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | 0 | |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 1,236 | 1,200 | 1,589 |
Impaired Financing Receivable, Related Allowance | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,110 | 1,422 | 1,108 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 9 | 721 | |
Impaired Financing Receivable, Average Recorded Investment | 1,110 | 1,431 | 1,829 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 71 | 80 | 68 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 50 | |
Impaired Financing Receivable, Interest Income Recognized | 71 | 80 | 118 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 62 | 69 | 62 |
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 0 | 38 | |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 62 | 69 | 100 |
Mortgage loans, commercial | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,190 | 2,446 | 1,967 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 1,906 | |
Impaired Financing Receivable, Recorded Investment | 3,190 | 2,446 | 3,873 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 3,190 | 2,446 | 1,967 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | 1,906 | |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 3,190 | 2,446 | 3,873 |
Impaired Financing Receivable, Related Allowance | 0 | 0 | 26 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,920 | 2,389 | 3,901 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 760 | 3,326 | |
Impaired Financing Receivable, Average Recorded Investment | 2,920 | 3,149 | 7,227 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 227 | 121 | 188 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 28 | 182 | |
Impaired Financing Receivable, Interest Income Recognized | 227 | 149 | 370 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 192 | 93 | 143 |
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 21 | 144 | |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 192 | 114 | 287 |
Mortgage loans, construction - custom and owner/builder | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No 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, 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 | 147 | ||
Impaired Financing Receivable, Average Recorded Investment | 147 | ||
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 7 | ||
Impaired Financing Receivable, Interest Income Recognized | 7 | ||
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 7 | ||
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 7 | ||
Mortgage loans, land | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 63 | 90 | 297 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 141 | 153 | 822 |
Impaired Financing Receivable, Recorded Investment | 204 | 243 | 1,119 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 126 | 195 | 410 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 141 | 153 | 881 |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 267 | 348 | 1,291 |
Impaired Financing Receivable, Related Allowance | 27 | 34 | 125 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 100 | 283 | 512 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 246 | 383 | 666 |
Impaired Financing Receivable, Average Recorded Investment | 346 | 666 | 1,178 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 3 | 11 | 8 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 9 | 35 |
Impaired Financing Receivable, Interest Income Recognized | 3 | 20 | 43 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 3 | 10 | 6 |
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 0 | 8 | 29 |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 3 | 18 | 35 |
Consumer loans, home equity and second mortgage | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 603 | 359 | 123 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 434 | |
Impaired Financing Receivable, Recorded Investment | 603 | 359 | 557 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 603 | 359 | 123 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 0 | 434 | |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 603 | 359 | 557 |
Impaired Financing Receivable, Related Allowance | 0 | 0 | 325 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 459 | 210 | 284 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 310 | 530 | |
Impaired Financing Receivable, Average Recorded Investment | 459 | 520 | 814 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 0 | 3 | 0 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 16 | 29 | |
Impaired Financing Receivable, Interest Income Recognized | 0 | 19 | 29 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 0 | 3 | 0 |
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 13 | 26 | |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 0 | 16 | 26 |
Other | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 23 | 0 | |
Impaired Financing Receivable, Recorded Investment | 23 | 0 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 23 | 0 | |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 23 | 0 | |
Impaired Financing Receivable, Related Allowance | 17 | 0 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 10 | 17 | |
Impaired Financing Receivable, Average Recorded Investment | 10 | 17 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 0 | 0 | |
Impaired Financing Receivable, Interest Income Recognized | 0 | 0 | |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 0 | 0 | |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | 0 | 0 | |
Commercial business loans | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 189 | 0 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 536 | 170 | |
Impaired Financing Receivable, Recorded Investment | 725 | 170 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 291 | 0 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 536 | 170 | |
Impaired Financing Receivable, Unpaid Principal Balance (Loan Balance Plus Charge Off) | 827 | 170 | 0 |
Impaired Financing Receivable, Related Allowance | 128 | 63 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 142 | 11 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 350 | 141 | |
Impaired Financing Receivable, Average Recorded Investment | 492 | 141 | 11 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 30 | 0 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 30 | 0 | |
Impaired Financing Receivable, Interest Income Recognized | 60 | 0 | 0 |
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Cash Basis Interest Income Recognized | 30 | 0 | |
Impaired Financing Receivable, with Related Allowance, Cash Basis Interest Income Recognized | 30 | 0 | |
Impaired Financing Receivable, Cash Basis Interest Income Recognized | $ 60 | $ 0 | $ 0 |
Loans Receivable and Allowan_12
Loans Receivable and Allowance for Loan Losses: Summary of TDR Loans (Details) - USD ($) | Sep. 30, 2019 | Sep. 30, 2018 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR loans included in impaired loans | $ 3,269,000 | $ 3,278,000 |
TDR Loans, commitment to lend additional funds | 0 | 0 |
Allowance for loan losses | 9,690,000 | 9,530,000 |
Troubled Debt Restructured Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Allowance for loan losses | $ 56,000 | $ 97,000 |
Loans Receivable and Allowan_13
Loans Receivable and Allowance for Loan Losses: Schedule of Troubled Debt Restructured Loans (Details) | 12 Months Ended | ||
Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | $ 3,269,000 | $ 3,278,000 | |
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, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | $ 82,000 | ||
Number of Contracts | contract | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 85,000 | ||
Post- Modification Outstanding Recorded Investment | 85,000 | ||
Mortgage loans, land | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 153,000 | ||
Mortgage loans, land | Portfolio Segment | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | $ 82,000 | $ 323,000 | |
Number of Contracts | contract | 1 | 3 | |
Pre-Modification Outstanding Recorded Investment | $ 85,000 | $ 427,000 | |
Post- Modification Outstanding Recorded Investment | 85,000 | 338,000 | |
Commercial business loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 143,000 | 170,000 | |
Mortgage loans, one-to-four family | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 634,000 | 509,000 | |
Mortgage loans, one-to-four family | Portfolio Segment | |||
Financing Receivable, Troubled Debt Restructuring [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 | ||
Mortgage loans, commercial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 2,410,000 | 2,446,000 | |
Mortgage loans, commercial | Portfolio Segment | |||
Financing Receivable, Troubled Debt Restructuring [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 | ||
Consumer loans, home equity and second mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 82,000 | ||
Accruing | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 2,903,000 | 2,955,000 | |
Accruing | Mortgage loans, land | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 0 | ||
Accruing | Commercial business loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 0 | 0 | |
Accruing | Mortgage loans, one-to-four family | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 493,000 | 509,000 | |
Accruing | Mortgage loans, commercial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 2,410,000 | 2,446,000 | |
Accruing | Consumer loans, home equity and second mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 0 | ||
Non- Accrual | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 366,000 | 323,000 | |
Non- Accrual | Mortgage loans, land | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 153,000 | ||
Non- Accrual | Commercial business loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 143,000 | 170,000 | |
Non- Accrual | Mortgage loans, one-to-four family | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 141,000 | 0 | |
Non- Accrual | Mortgage loans, commercial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | 0 | $ 0 | |
Non- Accrual | Consumer loans, home equity and second mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Troubled debt restructured loan | $ 82,000 |
Premises and Equipment_ Propert
Premises and Equipment: Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 38,935 | $ 33,757 |
Less accumulated depreciation | 16,105 | 14,804 |
Premises and equipment, net | 22,830 | 18,953 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 5,404 | 4,400 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 23,847 | 20,636 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 9,012 | 8,026 |
Property held for future expansion | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 334 | 129 |
Construction and purchases in progress | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 338 | $ 566 |
Premises and Equipment_ Rent Ex
Premises and Equipment: Rent Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Operating leases, rent expense | $ 332 | $ 206 | $ 275 |
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, 2019USD ($) |
Property, Plant and Equipment [Abstract] | |
2019 | $ 315 |
2020 | 229 |
2021 | 35 |
Total minimum payments required | $ 579 |
OREO and Other Repossessed As_3
OREO and Other Repossessed Assets: Other Real Estate, Roll Forward (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019USD ($)property | Sep. 30, 2018USD ($)property | |
OREO and Other Repossessed Assets | ||
OREO and Other Repossessed Assets, Amount, Starting Balance | $ | $ 1,913 | $ 3,301 |
Additions to OREO and other repossessed assets, amount | $ | 293 | 324 |
Writedowns, amount | $ | (24) | (248) |
Sales of OREO and other repossessed assets, amount | $ | (524) | (1,464) |
OREO and Other Repossessed Assets, Amount, Ending Balance | $ | $ 1,683 | $ 1,913 |
Other Real Estate, Number Of Contracts [Roll Forward] | ||
OREO and Other Repossessed Assets, Number, Starting Balance | property | 12 | 16 |
Additions to OREO and other repossessed assets, number | property | 2 | 2 |
Writedowns, number | property | 0 | 0 |
Sales of OREO and other repossessed assets, number | property | (3) | (6) |
OREO and Other Repossessed Assets, Number, Ending Balance | property | 12 | 12 |
South Sound Bank | ||
OREO and Other Repossessed Assets | ||
Additions to OREO and other repossessed assets, amount | $ | $ 25 | $ 0 |
Other Real Estate, Number Of Contracts [Roll Forward] | ||
Additions to OREO and other repossessed assets, number | property | 1 | 0 |
OREO and Other Repossessed As_4
OREO and Other Repossessed Assets: Narrative (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019USD ($)property | Sep. 30, 2018USD ($)property | Sep. 30, 2017USD ($) | |
Real Estate Properties [Line Items] | |||
Other real estate owned (“OREO”) and other repossessed assets, net | $ 1,683 | $ 1,913 | $ 3,301 |
(Gain) loss on sales of OREO and other repossessed assets, net | 89 | $ 229 | $ 54 |
Recorded amount of foreclosed residential real estate properties held in OREO | $ 150 | ||
Washington | |||
Real Estate Properties [Line Items] | |||
OREO, number of repossessed assets | property | 12 | ||
Number of other repossessed assets | property | 0 | 0 | |
Washington | Minimum | |||
Real Estate Properties [Line Items] | |||
Other real estate owned (“OREO”) and other repossessed assets, net | $ 13 | ||
Washington | Maximum | |||
Real Estate Properties [Line Items] | |||
Other real estate owned (“OREO”) and other repossessed assets, net | $ 874 |
Goodwill and CDI - Goodwill (De
Goodwill and CDI - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill [Roll Forward] | ||
Balance at the beginning of the period | $ 15,131 | $ 5,650 |
Addition as a result of the South Sound Merger (see Note 2) | 9,481 | |
Balance at the end of the period | $ 15,131 |
Servicing Rights - Summary of L
Servicing Rights - Summary of Loans serviced for Freddie Mac (Details) - Freddie Mac - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Servicing Assets at Fair Value [Line Items] | |||
Loans serviced for Freddie Mac, Principal amount | $ 386,357 | $ 370,928 | $ 358,173 |
Loans serviced for SBA, Principal amount | $ 12,765 | $ 754 | $ 697 |
Goodwill and CDI - CDI (Details
Goodwill and CDI - CDI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of CDI | $ 452 | $ 0 | $ 0 |
Core Deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Addition as a result of the South Sound Merger (see Note 2) | 2,483 | ||
Net unamortized CDI | 2,031 | ||
Amortization of CDI | $ 452 |
Servicing Rights - Analysis of
Servicing Rights - Analysis of the changes in MSRs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Freddie Mac | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Balance, beginning of year | $ 2,022 | $ 1,823 | $ 1,570 |
Additions | 747 | 687 | 739 |
Amortization | (563) | (488) | (486) |
Balance, end of year | 2,206 | 2,022 | 1,823 |
SBA | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Balance, beginning of year | 6 | 2 | 3 |
Additions due to South Sound Acquisition | 281 | 0 | 0 |
Other additions | 2 | 7 | 0 |
Amortization | (83) | (3) | (1) |
Valuation allowance | (4) | 0 | 0 |
Balance, end of year | $ 202 | $ 6 | $ 2 |
Goodwill and CDI - Amortization
Goodwill and CDI - Amortization Expense (Details) - Core Deposits $ in Thousands | Sep. 30, 2019USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 406 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 361 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 316 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 271 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 226 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 451 |
Finite-Lived Intangible Assets, Net | $ 2,031 |
Servicing Rights - Summary of F
Servicing Rights - Summary of Fair Values (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Servicing Assets at Fair Value [Line Items] | |||
MSRs valuation allowances | $ 0 | $ 0 | |
SBA | |||
Servicing Assets at Fair Value [Line Items] | |||
Mortgage servicing rights (MSR), fair value | $ 202,000 | ||
Mortgage servicing rights (MSR), average discount rates for estimating fair value | 15.00% | ||
Mortgage servicing rights (MSR), average conditional prepayment rates for estimating fair value | 0.1613 | ||
MSRs valuation allowances | $ 4,000 | ||
Freddie Mac | |||
Servicing Assets at Fair Value [Line Items] | |||
Mortgage servicing rights (MSR), fair value | $ 3,694,000 | $ 4,171,000 | $ 3,556,000 |
Mortgage servicing rights (MSR), average discount rates for estimating fair value | 9.00% | 8.99% | 9.52% |
Mortgage servicing rights (MSR), average conditional prepayment rates for estimating fair value | 0.1131 | 0.0810 | 0.0990 |
Deposits_ Schedule of Deposits
Deposits: Schedule of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Deposits [Abstract] | ||
Non-interest-bearing demand | $ 296,472 | $ 233,258 |
NOW checking | 297,055 | 225,290 |
Savings | 164,506 | 151,404 |
Money market | 144,539 | 137,746 |
Certificates of deposit | 165,655 | 141,808 |
Total deposits | $ 1,068,227 | $ 889,506 |
Deposits_ Narrative (Details)
Deposits: Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Deposits [Abstract] | ||
Time Deposits, $250,000 Or More | $ 29,211 | $ 18,164 |
Brokered deposits | $ 19,327 | $ 17,202 |
Deposits_ Scheduled maturities
Deposits: Scheduled maturities of certificates of deposit for future years (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Deposits [Abstract] | |
2019 | $ 92,266 |
2020 | 38,724 |
2021 | 17,746 |
2022 | 8,113 |
2023 | 8,806 |
Total | $ 165,655 |
Deposits_ Schedule of Interest
Deposits: Schedule of Interest Expense on Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Deposits [Abstract] | |||
NOW checking | $ 840 | $ 451 | $ 460 |
Savings | 106 | 85 | 78 |
Money market | 1,119 | 722 | 434 |
Certificates of deposit | 2,500 | 1,520 | 1,246 |
Total | $ 4,565 | $ 2,778 | $ 2,218 |
FHLB Borrowings and Other Bor_2
FHLB Borrowings and Other Borrowings (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
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 | 84,356,000 | |
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 |
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, 2019 | Sep. 30, 2018 |
Payables and Accruals [Abstract] | ||
Accrued deferred compensation, profit sharing plans and bonuses payable | $ 3,131 | $ 1,235 |
Accrued interest payable on deposits | 333 | 225 |
Accounts payable and accrued expenses - other | 4,374 | 2,667 |
Total other liabilities and accrued expenses | $ 7,838 | $ 4,127 |
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, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal | $ 5,198 | $ 4,900 | $ 6,656 | ||||||||
State | 0 | 4 | 35 | ||||||||
Deferred | 703 | 797 | 385 | ||||||||
Provision for income taxes | $ 1,639 | $ 1,552 | $ 1,277 | $ 1,433 | $ 1,370 | $ 1,334 | $ 1,216 | $ 1,781 | $ 5,901 | $ 5,701 | $ 7,076 |
Federal Income Taxes_ Narrative
Federal Income Taxes: Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
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 | $ 1,639,000 | $ 1,552,000 | $ 1,277,000 | $ 1,433,000 | $ 1,370,000 | $ 1,334,000 | $ 1,216,000 | $ 1,781,000 | 5,901,000 | $ 5,701,000 | $ 7,076,000 |
Income taxes receivable | 1,210,000 | 151,000 | 1,210,000 | 151,000 | |||||||
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, 2019 | Sep. 30, 2018 |
Deferred Tax Assets | ||
Allowance for loan losses | $ 1,550 | $ 2,021 |
Allowance for OREO losses | 218 | 311 |
Unearned ESOP shares | 0 | 32 |
Core deposit intangible | 0 | 31 |
OTTI credit impairment on investment securities | 97 | 104 |
Accrued interest on loans | 76 | 10 |
Net unrealized losses on investment securities | 0 | 42 |
Deferred compensation and bonuses | 520 | 56 |
Reserve for loan commitments | 51 | 43 |
Other | 82 | 29 |
Total deferred tax assets | 2,594 | 2,679 |
Deferred Tax Liabilities | ||
Goodwill | 1,187 | 1,107 |
Servicing rights | 506 | 426 |
Depreciation | 494 | 283 |
Loan fees/costs | 267 | 121 |
FHLB stock dividends | 82 | 82 |
Prepaid expenses | 70 | 74 |
Purchase accounting adjustment | 110 | 0 |
Net unrealized gains on investment securities and investments in equity securities | 15 | 0 |
Other | 0 | 2 |
Total deferred tax liabilities | 2,731 | 2,095 |
Net deferred tax assets (liabilities) | $ (137) | $ 584 |
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, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Expected federal income tax provision at statutory rate | $ 6,283 | $ 5,500 | $ 7,435 | ||||||||
Net impact of the Tax Act | 0 | 548 | 0 | ||||||||
BOLI income | (345) | (134) | (191) | ||||||||
Dividends on ESOP | (73) | (71) | (102) | ||||||||
Stock options tax effect | (87) | (157) | (188) | ||||||||
Other, net | 123 | 15 | 122 | ||||||||
Provision for income taxes | $ 1,639 | $ 1,552 | $ 1,277 | $ 1,433 | $ 1,370 | $ 1,334 | $ 1,216 | $ 1,781 | $ 5,901 | $ 5,701 | $ 7,076 |
Employee Stock Ownership and _3
Employee Stock Ownership and 401(k) Plan: Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | 144 Months Ended | ||
Jan. 31, 1998USD ($)shares | Sep. 30, 2019USD ($)component | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2019shares | |
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 | $ 743 | $ 379 | $ 358 | ||
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) | 18 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 | $ 9 | 53 | 96 | ||
Dividends used for debt service | 176 | 291 | 293 | ||
ESOP, shares distributed to participants (in shares) | shares | 632,719 | ||||
ESOP, fair value of unallocated shares | 551 | 1,658 | |||
Earned ESOP shares | $ 318 | $ 823 | $ 495 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Retirement Benefits [Abstract] | |||
Unallocated shares (shares) | 0 | 17,639 | 52,905 |
Shares released for allocation (shares) | 425,281 | 451,644 | 489,665 |
Total ESOP shares (shares) | 425,281 | 469,283 | 542,570 |
Stock Compensation Plans_ Narra
Stock Compensation Plans: Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 27, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate intrinsic value of options exercised | $ 864 | $ 894 | ||
Share-based compensation, nonvested awards, future recognition of compensation cost, Stock Options | $ 604 | |||
Unrecognized compensation cost, weighted average period for recognition (in years) | 2 years 5 months 12 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) | 30,076 | |||
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) | 46,840 | 45,950 | 58,250 | |
Stock options, aggregate grant date fair value | $ 240 | $ 206 | $ 224 | |
Stock options vested during period (in shares) | 77,540 | 76,450 | 69,800 | |
Stock options vested during period, aggregate grant date fair value | $ 203 | $ 181 | $ 145 | |
Number of unvested stock options (in shares) | 160,750 | 196,750 | ||
Unvested stock awards, aggregate grant date fair value | $ 605 | $ 582 | ||
Unvested stock options, aggregate intrinsic value | 658 | |||
Stock options, outstanding, aggregate intrinsic value | $ 3,854 | $ 5,813 | $ 6,882 | |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Number of Shares | |||
Options outstanding, beginning of period (in shares) | 380,820 | 380,120 | 373,130 |
Options granted (in shares) | 46,840 | 45,950 | 58,250 |
Options exercised (in shares) | (43,856) | (40,100) | (46,310) |
Options forfeited (in shares) | (5,500) | (5,150) | (4,950) |
Options outstanding, end of period (in shares) | 378,304 | 380,820 | 380,120 |
Weighted Average Exercise Price | |||
Options outstanding, beginning of period (in dollars per share) | $ 16.03 | $ 13.23 | $ 9.82 |
Options granted (in dollars per share) | 27.14 | 31.80 | 29.69 |
Options exercised (in dollars per share) | 9.14 | 7.92 | 7.17 |
Options forfeited (in dollars per share) | 19.89 | 13.39 | 6.28 |
Options outstanding, end of period (in dollars per share) | $ 18.15 | $ 16.03 | $ 13.23 |
Stock Compensation Plans_ Fair
Stock Compensation Plans: Fair Value Assumptions (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (as a percent) | 29.00% | 17.00% | 16.00% |
Expected life (in years) | 5 years | 5 years | 5 years |
Expected dividend yield (as a percent) | 3.28% | 2.61% | 1.85% |
Risk free interest rate (as a percent) | 1.53% | 2.97% | 1.89% |
Grant date fair value per share (in dollars per share) | $ 5.116 | $ 4.48 | $ 3.84 |
Stock Compensation Plans_ Sto_2
Stock Compensation Plans: Stock Options by Exercise Price (Details) - Stock Options | 12 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 378,304 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 18.15 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 6 years 8 months 3 days |
Options Exercisable, Number (in shares) | shares | 217,554 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 13.21 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 5 years 5 months 27 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) | $ 4.33 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 11 months |
Options Exercisable, Number (in shares) | shares | 2,500 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 4.33 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 11 months |
Exercise price range, lower range limit (in dollars per share) | $ 4.01 |
Exercise price range, upper range limit (in dollars per share) | $ 4.55 |
5.86 - 6.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 19,100 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 5.97 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 3 years 24 days |
Options Exercisable, Number (in shares) | shares | 19,100 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 5.97 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 3 years 24 days |
Exercise price range, lower range limit (in dollars per share) | $ 5.86 |
Exercise price range, upper range limit (in dollars per share) | $ 6 |
9.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 49,975 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 9 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 4 years 30 days |
Options Exercisable, Number (in shares) | shares | 49,975 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 9 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 4 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 | 110,839 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 10.58 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 6 months 18 days |
Options Exercisable, Number (in shares) | shares | 87,589 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 10.57 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 5 years 5 months 27 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 | 48,000 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 15.67 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 7 years |
Options Exercisable, Number (in shares) | shares | 27,000 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 15.67 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 7 years |
Exercise price range, lower range limit (in dollars per share) | $ 15.67 |
27.14 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 46,840 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 27.14 |
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) | $ 27.14 |
29.69 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options Outstanding, Number (in shares) | shares | 55,600 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 29.69 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 8 years |
Options Exercisable, Number (in shares) | shares | 22,300 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 29.69 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 8 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 | 45,450 |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 31.80 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 9 years |
Options Exercisable, Number (in shares) | shares | 9,090 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 31.80 |
Options Exercisable, Weighted Average Remaining Contractual Life (Years) | 9 years |
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, 2019 | Sep. 30, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Undisbursed portion of construction loans in process | $ 92,226 | $ 83,237 |
Undisbursed lines of credit | 80,184 | 49,525 |
Commitments to extend credit | $ 16,578 | $ 17,665 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Reserve for unfunded loan commitments | $ 241 | $ 207 |
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, 2019 | Sep. 30, 2018 |
Timberland Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Leverage Capital, Actual Amount | $ 152,926 | $ 117,336 |
Tier 1 Leverage Capital, Actual Ratio | 12.50% | 11.70% |
Tier 1 Leverage Capital, Regulatory Minimum To Be Adequately Capitalized, Amount | $ 49,044 | $ 40,024 |
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 | $ 61,305 | $ 50,031 |
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 | $ 152,926 | $ 117,336 |
Tier 1 Risk-based Capital Ratio, Common Equity, Actual Ratio | 18.10% | 16.70% |
Tier 1 Risk-based Capital Ratio, Regulatory Minimum To Be Adequately Capitalized, Amount | $ 38,019 | $ 31,539 |
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 | $ 54,916 | $ 45,557 |
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 | $ 152,926 | $ 117,336 |
Tier 1 Risk-based Capital, Actual Ratio | 18.10% | 16.70% |
Tier 1 Risk-based Capital, Regulatory Minimum To Be Adequately Capitalized, Amount | $ 50,692 | $ 42,052 |
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 | $ 67,589 | $ 56,070 |
Tier 1 Risk-based Capital, Regulatory Minimum To Be Well Capitalized, Ratio | 8.00% | 8.00% |
Total Capital, Actual Amount | $ 162,857 | $ 126,109 |
Total Capital, Actual Ratio | 19.30% | 18.00% |
Total Capital, Regulatory Minimum To Be Adequately Capitalized, Amount | $ 67,589 | $ 56,070 |
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 | $ 84,487 | $ 70,087 |
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 | $ 155,468 | $ 120,175 |
Tier 1 Leverage Capital, Actual Ratio | 12.70% | 12.00% |
Tier 1 Risk-based Capital Ratio, Common Equity, Actual Amount | $ 155,468 | $ 120,175 |
Tier 1 Risk-based Capital Ratio, Common Equity, Actual Ratio | 18.40% | 17.10% |
Tier 1 Risk-based Capital, Actual Amount | $ 155,468 | $ 120,175 |
Tier 1 Risk-based Capital, Actual Ratio | 18.40% | 17.10% |
Total Capital, Actual Amount | $ 165,399 | $ 128,955 |
Total Capital, Actual Ratio | 19.60% | 18.40% |
Regulatory Matters_ Narrative (
Regulatory Matters: Narrative (Details) - Timberland Bank | Sep. 30, 2019 | Sep. 30, 2018 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Cash and cash equivalents: | ||||
Cash and due from financial institutions | $ 25,179 | $ 20,238 | ||
Interest-bearing deposits in banks | 117,836 | 128,626 | ||
Total cash and cash equivalents | 143,015 | 148,864 | $ 148,188 | $ 108,941 |
Other assets | 5,323 | 2,672 | ||
Total assets | 1,247,132 | 1,018,290 | ||
Liabilities and shareholders’ equity | ||||
Shareholders’ equity | 171,067 | 124,657 | 111,000 | 96,834 |
Total liabilities and shareholders’ equity | 1,247,132 | 1,018,290 | ||
Parent Company | ||||
Cash and cash equivalents: | ||||
Cash and due from financial institutions | 336 | 306 | ||
Interest-bearing deposits in banks | 2,555 | 2,588 | ||
Total cash and cash equivalents | 2,891 | 2,894 | $ 2,282 | $ 1,307 |
Loan receivable from ESOP | 0 | 285 | ||
Investment in Bank | 168,525 | 121,818 | ||
Other assets | 15 | 15 | ||
Total assets | 171,431 | 125,012 | ||
Liabilities and shareholders’ equity | ||||
Accrued expenses | 364 | 355 | ||
Shareholders’ equity | 171,067 | 124,657 | ||
Total liabilities and shareholders’ equity | $ 171,431 | $ 125,012 |
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, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating income | |||||||||||
Interest on deposits in banks | $ 5,172 | $ 3,198 | $ 1,586 | ||||||||
Operating expenses | 1,358 | 1,192 | 1,074 | ||||||||
Income before income taxes and equity in undistributed income of Bank | 29,921 | 22,422 | 21,243 | ||||||||
Benefit for income taxes | $ 1,639 | $ 1,552 | $ 1,277 | $ 1,433 | $ 1,370 | $ 1,334 | $ 1,216 | $ 1,781 | 5,901 | 5,701 | 7,076 |
Net income | $ 6,335 | $ 5,956 | $ 6,114 | $ 5,615 | $ 4,422 | $ 4,416 | $ 4,269 | $ 3,614 | 24,020 | 16,721 | 14,167 |
Parent Company | |||||||||||
Operating income | |||||||||||
Interest on deposits in banks | 67 | 37 | 27 | ||||||||
Interest on loan receivable from ESOP | 9 | 53 | 96 | ||||||||
Dividends from Bank | 6,607 | 4,429 | 1,390 | ||||||||
Total operating income | 6,683 | 4,519 | 1,513 | ||||||||
Operating expenses | 525 | 591 | 467 | ||||||||
Income before income taxes and equity in undistributed income of Bank | 6,158 | 3,928 | 1,046 | ||||||||
Benefit for income taxes | (169) | (198) | (385) | ||||||||
Income before undistributed income of Bank | 6,327 | 4,126 | 1,431 | ||||||||
Equity in undistributed income of Bank | 17,693 | 12,595 | 12,736 | ||||||||
Net income | $ 24,020 | $ 16,721 | $ 14,167 |
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, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | |||||||||||
Net income | $ 6,335 | $ 5,956 | $ 6,114 | $ 5,615 | $ 4,422 | $ 4,416 | $ 4,269 | $ 3,614 | $ 24,020 | $ 16,721 | $ 14,167 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Stock option compensation expense | 159 | 172 | 156 | ||||||||
Net cash provided by operating activities | 18,108 | 21,450 | 13,859 | ||||||||
Cash flows from investing activities | |||||||||||
Cash acquired, net of cash consideration paid in business combination | 14,284 | 0 | 0 | ||||||||
Net cash used in investing activities | (44,547) | (68,269) | (20,163) | ||||||||
Cash flows from financing activities | |||||||||||
Proceeds from exercise of stock warrant | 0 | 0 | 2,496 | ||||||||
Repurchase of common stock | (499) | 0 | 0 | ||||||||
Payment of dividends | (6,495) | (4,431) | (3,641) | ||||||||
Net cash provided by financing activities | 20,590 | 47,495 | 45,551 | ||||||||
Net increase (decrease) in cash and cash equivalents | (5,849) | 676 | 39,247 | ||||||||
Cash and cash equivalents: | |||||||||||
Beginning of period | 148,864 | 148,188 | 148,864 | 148,188 | 108,941 | ||||||
End of period | 143,015 | 148,864 | 143,015 | 148,864 | 148,188 | ||||||
Parent Company | |||||||||||
Cash flows from operating activities | |||||||||||
Net income | 24,020 | 16,721 | 14,167 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed income of Bank | (17,693) | (12,595) | (12,736) | ||||||||
Earned ESOP shares | 441 | 882 | 605 | ||||||||
Stock option compensation expense | 159 | 172 | 156 | ||||||||
Other, net | 9 | 280 | 33 | ||||||||
Net cash provided by operating activities | 6,936 | 5,460 | 2,225 | ||||||||
Cash flows from investing activities | |||||||||||
Investment in Bank | (14,915) | (1,271) | (930) | ||||||||
Principal repayments on loan receivable from ESOP | 285 | 536 | 493 | ||||||||
Net cash used in investing activities | (346) | (735) | (437) | ||||||||
Cash flows from financing activities | |||||||||||
Proceeds from exercise of stock options | 401 | 318 | 332 | ||||||||
Proceeds from exercise of stock warrant | 0 | 0 | 2,496 | ||||||||
Repurchase of common stock | (499) | 0 | 0 | ||||||||
Payment of dividends | (6,495) | (4,431) | (3,641) | ||||||||
Net cash provided by financing activities | (6,593) | (4,113) | (813) | ||||||||
Net increase (decrease) in cash and cash equivalents | (3) | 612 | 975 | ||||||||
Cash and cash equivalents: | |||||||||||
Beginning of period | $ 2,894 | $ 2,282 | 2,894 | 2,282 | 1,307 | ||||||
End of period | $ 2,891 | $ 2,894 | $ 2,891 | $ 2,894 | $ 2,282 |
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, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share, Basic [Abstract] | |||||||||||
Net income to common shareholders | $ 24,020 | $ 16,721 | $ 14,167 | ||||||||
Denominator – weighted average common shares outstanding (shares) | 8,318,928 | 7,334,577 | 7,136,690 | ||||||||
Basic net income per common share (in dollars per share) | $ 0.76 | $ 0.71 | $ 0.74 | $ 0.68 | $ 0.60 | $ 0.60 | $ 0.58 | $ 0.49 | $ 2.89 | $ 2.28 | $ 1.99 |
Diluted net income per common share computation | |||||||||||
Effect of dilutive stock options (shares) | 149,298 | 191,767 | 163,773 | ||||||||
Effect of dilutive stock warrant (shares) | 0 | 0 | 79,590 | ||||||||
Weighted average common shares outstanding-assuming dilution (shares) | 8,468,226 | 7,526,344 | 7,380,053 | ||||||||
Diluted net income per common share (in dollars per share) | $ 0.75 | $ 0.70 | $ 0.72 | $ 0.66 | $ 0.59 | $ 0.59 | $ 0.57 | $ 0.48 | $ 2.84 | $ 2.22 | $ 1.92 |
Net Income Per Common Share_ Na
Net Income Per Common Share: Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
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) | 102,920 | 29,581 | 1,117 | |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 124,657 | $ 111,000 | $ 96,834 |
Ending Balance | 171,067 | 124,657 | 111,000 |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (129) | (124) | (175) |
Other comprehensive income | 116 | (5) | 51 |
Ending Balance | 50 | (129) | (124) |
ASU 2016-01 | Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income | 63 | ||
Available-for-sale Securities [Member] | Changes in fair value of available for sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (58) | (19) | 4 |
Other comprehensive income | 85 | (39) | (23) |
Ending Balance | 90 | (58) | (19) |
Available-for-sale Securities [Member] | ASU 2016-01 | Changes in fair value of available for sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income | 63 | ||
Held-to-maturity Securities | Changes in fair value of available for sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (71) | (105) | (179) |
Other comprehensive income | 31 | 34 | 74 |
Ending Balance | (40) | $ (71) | $ (105) |
Held-to-maturity Securities | ASU 2016-01 | Changes in fair value of available for sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income | $ 0 |
Fair Value Measurements_ Balanc
Fair Value Measurements: Balances of Assets and Liabilities Measured on a Recurring Balance (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 1,154 | |
Mortgage-backed Securities, U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 22,532 | 237 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 23,490 | 1,154 |
Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 958 | 917 |
Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 22,532 | 237 |
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 | 22,532 | 237 |
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 | 22,532 | 237 |
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 | 958 | 917 |
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 | 958 | 917 |
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 ($) | Sep. 30, 2019 | Sep. 30, 2018 |
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, 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 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | ||
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 | 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 | 2,000 | 3,000 |
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 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | ||
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 | 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 | 2,000 | 3,000 |
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 | 2,211,000 | 2,139,000 |
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 | 114,000 | 119,000 |
Fair Value, Inputs, Level 3 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, estimated fair value, nonrecurring | 6,000 | |
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 | 408,000 | 107,000 |
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 | 528,000 | 226,000 |
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 | $ 1,683,000 | $ 1,913,000 |
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, 2019 | Sep. 30, 2018 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Assets, estimated fair value, nonrecurring | $ 2,211 | $ 2,139 |
Total impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Assets, estimated fair value, nonrecurring | 528 | 226 |
OREO and other repossessed assets | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Assets, estimated fair value, nonrecurring | 1,683 | 1,913 |
Market approach | Total impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Assets, estimated fair value, nonrecurring | 528 | 226 |
Market approach | OREO and other repossessed assets | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Assets, estimated fair value, nonrecurring | $ 1,683 | $ 1,913 |
Fair Value Measurements_ Estima
Fair Value Measurements: Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Recorded Amount | ||
Fair value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 143,015 | $ 148,864 |
CDs held for investment | 78,346 | 63,290 |
Investment securities | 53,634 | 13,964 |
Investments in equity securities | 958 | |
FHLB stock | 1,437 | 1,190 |
Other investments | 3,000 | 3,000 |
Loans held for sale | 6,071 | 1,785 |
Loans receivable, net | 886,662 | 725,391 |
Accrued interest receivable | 3,598 | 2,877 |
Certificates of deposit | 165,655 | 141,808 |
Accrued interest payable | 333 | 225 |
Fair Value | ||
Fair value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 143,015 | 148,864 |
CDs held for investment | 78,346 | 63,290 |
Investment securities | 55,112 | 14,418 |
Investments in equity securities | 958 | |
FHLB stock | 1,437 | 1,190 |
Other investments | 3,000 | 3,000 |
Loans held for sale | 6,260 | 1,814 |
Loans receivable, net | 892,495 | 711,071 |
Accrued interest receivable | 3,598 | 2,877 |
Certificates of deposit | 166,852 | 140,831 |
Accrued interest payable | 333 | 225 |
Fair Value | Fair Value, Inputs, Level 1 | ||
Fair value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 143,015 | 148,864 |
CDs held for investment | 78,346 | 63,290 |
Investment securities | 3,949 | 8,812 |
Investments in equity securities | 958 | |
FHLB stock | 1,437 | 1,190 |
Other investments | 3,000 | 3,000 |
Loans held for sale | 6,260 | 1,814 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 3,598 | 2,877 |
Certificates of deposit | 0 | 0 |
Accrued interest payable | 333 | 225 |
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 | 51,163 | 5,606 |
Investments in equity securities | 0 | |
FHLB stock | 0 | 0 |
Other investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Certificates of deposit | 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 |
Investments in equity securities | 0 | |
FHLB stock | 0 | 0 |
Other investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans receivable, net | 892,495 | 711,071 |
Accrued interest receivable | 0 | 0 |
Certificates of deposit | 166,852 | 140,831 |
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, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 14,384 | $ 14,185 | $ 13,841 | $ 13,315 | $ 11,051 | $ 10,457 | $ 10,290 | $ 10,035 | |||
Interest expense | (1,233) | (1,248) | (1,113) | (971) | (781) | (730) | (666) | (601) | $ (4,565) | $ (2,778) | $ (3,197) |
Net interest income | 13,151 | 12,937 | 12,728 | 12,344 | 10,270 | 9,727 | 9,624 | 9,434 | 51,160 | 39,055 | 35,141 |
Non-interest income | 3,597 | 3,538 | 3,940 | 3,266 | 3,180 | 3,145 | 3,082 | 3,137 | 14,341 | 12,544 | 12,368 |
Non-interest expense | (8,774) | (8,967) | (9,277) | (8,562) | (7,658) | (7,122) | (7,221) | (7,176) | (35,580) | (29,177) | (27,516) |
Income before income taxes | 7,974 | 7,508 | 7,391 | 7,048 | 5,792 | 5,750 | 5,485 | 5,395 | |||
Provision for income taxes | 1,639 | 1,552 | 1,277 | 1,433 | 1,370 | 1,334 | 1,216 | 1,781 | 5,901 | 5,701 | 7,076 |
Net income | $ 6,335 | $ 5,956 | $ 6,114 | $ 5,615 | $ 4,422 | $ 4,416 | $ 4,269 | $ 3,614 | $ 24,020 | $ 16,721 | $ 14,167 |
Net income per common share | |||||||||||
Basic (in dollars per share) | $ 0.76 | $ 0.71 | $ 0.74 | $ 0.68 | $ 0.60 | $ 0.60 | $ 0.58 | $ 0.49 | $ 2.89 | $ 2.28 | $ 1.99 |
Diluted (in dollars per share) | $ 0.75 | $ 0.70 | $ 0.72 | $ 0.66 | $ 0.59 | $ 0.59 | $ 0.57 | $ 0.48 | $ 2.84 | $ 2.22 | $ 1.92 |
Selected Quarterly Financial _4
Selected Quarterly Financial Dara (Unaudited): Selected financial data (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
South Sound Bank | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, acquisition related costs | $ 15 | $ 328 | $ 55 | $ 64 | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Service charges on deposits | |||
Revenue from External Customer [Line Items] | |||
Service charges on deposits | $ 4,904 | $ 4,581 | $ 4,518 |
ATM and debit card interchange transaction fees | |||
Revenue from External Customer [Line Items] | |||
Service charges on deposits | 4,036 | 3,570 | 3,343 |
Escrow fees | |||
Revenue from External Customer [Line Items] | |||
Service charges on deposits | 197 | 211 | 242 |
Fee income from non-deposit investment sales | |||
Revenue from External Customer [Line Items] | |||
Service charges on deposits | $ 46 | $ 109 | $ 63 |
Uncategorized Items - tsbk-2019
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 63,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (63,000) |