TFSL 03.31.2013 MASTER 10Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________________
FORM 10-Q
________________________
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x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended March 31, 2013
or
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¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For transition period from to
Commission File Number 001-33390
__________________________
TFS FINANCIAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
__________________________
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| | |
United States of America | | 52-2054948 |
(State or Other Jurisdiction of Incorporation or Organization) | | (I.R.S. Employer Identification No.) |
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7007 Broadway Avenue Cleveland, Ohio | | 44105 |
(Address of Principal Executive Offices) | | (Zip Code) |
(216) 441-6000
Registrant’s telephone number, including area code:
Not Applicable
(Former name or former address, if changed since last report)
__________________________
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
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Large accelerated filer | | ý | | | Accelerated filer | | ¨ |
| | | |
Non-accelerated filer | | ¨ | (do not check if a smaller reporting company) | | Smaller Reporting Company | | ¨ |
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No ý.
Indicate the number of shares outstanding of each of the Registrant’s classes of common stock as of the latest practicable date.
As of May 1, 2013 there were 309,115,625 shares of the Registrant’s common stock, par value $0.01 per share, outstanding, of which 227,119,132 shares, or 73.5% of the Registrant’s common stock, were held by Third Federal Savings and Loan Association of Cleveland, MHC, the Registrant’s mutual holding company.
TFS Financial Corporation
INDEX
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PART l – FINANCIAL INFORMATION | |
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Item 1. | | |
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Item 2. | | |
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Item 3. | | |
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Item 4. | | |
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Item 1. | | |
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Item 1A. | | |
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Item 2. | | |
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Item 3. | | |
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Item 4. | | |
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Item 5. | | |
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Item 6. | | |
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Item 1. Financial Statements
TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION (unaudited)
(In thousands, except share data) |
| | | | | | | |
| March 31,
2013 | | September 30,
2012 |
ASSETS | | | |
Cash and due from banks | $ | 31,982 |
| | $ | 38,914 |
|
Other interest-earning cash equivalents | 252,164 |
| | 269,348 |
|
Cash and cash equivalents | 284,146 |
| | 308,262 |
|
Investment securities: | | | |
Available for sale (amortized cost $454,297 and $417,416, respectively) | 456,888 |
| | 421,430 |
|
Mortgage loans held for sale, at lower of cost or market ($3,017 measured at fair value, September 30, 2012) | 96,882 |
| | 124,528 |
|
Loans held for investment, net: | | | |
Mortgage loans | 9,965,436 |
| | 10,339,402 |
|
Other loans | 4,276 |
| | 4,612 |
|
Deferred loan fees, net | (17,241 | ) | | (18,561 | ) |
Allowance for loan losses | (101,217 | ) | | (100,464 | ) |
Loans, net | 9,851,254 |
| | 10,224,989 |
|
Mortgage loan servicing assets, net | 16,390 |
| | 19,613 |
|
Federal Home Loan Bank stock, at cost | 35,620 |
| | 35,620 |
|
Real estate owned | 19,868 |
| | 19,647 |
|
Premises, equipment, and software, net | 59,596 |
| | 61,150 |
|
Accrued interest receivable | 32,037 |
| | 34,887 |
|
Bank owned life insurance contracts | 180,460 |
| | 177,279 |
|
Other assets | 88,620 |
| | 90,720 |
|
TOTAL ASSETS | $ | 11,121,761 |
| | $ | 11,518,125 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | |
Deposits | $ | 8,757,282 |
| | $ | 8,981,419 |
|
Borrowed funds | 315,919 |
| | 488,191 |
|
Borrowers’ advances for insurance and taxes | 60,753 |
| | 67,864 |
|
Principal, interest, and related escrow owed on loans serviced | 114,889 |
| | 127,539 |
|
Accrued expenses and other liabilities | 37,534 |
| | 46,262 |
|
Total liabilities | 9,286,377 |
| | 9,711,275 |
|
Commitments and contingent liabilities |
|
| |
|
|
Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding | — |
| | — |
|
Common stock, $0.01 par value, 700,000,000 shares authorized; 332,318,750 shares issued; 309,115,625 and 309,009,393 outstanding at March 31, 2013 and September 30, 2012, respectively | 3,323 |
| | 3,323 |
|
Paid-in capital | 1,693,821 |
| | 1,691,884 |
|
Treasury stock, at cost; 23,203,125 and 23,309,357 shares at March 31, 2013 and September 30, 2012, respectively | (279,629 | ) | | (280,937 | ) |
Unallocated ESOP shares | (72,584 | ) | | (74,751 | ) |
Retained earnings—substantially restricted | 497,113 |
| | 473,247 |
|
Accumulated other comprehensive loss | (6,660 | ) | | (5,916 | ) |
Total shareholders’ equity | 1,835,384 |
| | 1,806,850 |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 11,121,761 |
| | $ | 11,518,125 |
|
TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(In thousands, except share and per share data)
|
| | | | | | | | | | | | | | | |
| For the Three Months Ended | | For the Six Months Ended |
| March 31, | | March 31, |
| 2013 | | 2012 | | 2013 | | 2012 |
INTEREST AND DIVIDEND INCOME: | | | | | | | |
Loans, including fees | $ | 95,241 |
| | $ | 102,696 |
| | $ | 193,930 |
| | $ | 205,903 |
|
Investment securities available for sale | 1,079 |
| | 33 |
| | 2,192 |
| | 70 |
|
Investment securities held to maturity | — |
| | 1,538 |
| | — |
| | 3,272 |
|
Other interest and dividend earning assets | 515 |
| | 551 |
| | 1,101 |
| | 1,108 |
|
Total interest and dividend income | 96,835 |
| | 104,818 |
| | 197,223 |
| | 210,353 |
|
INTEREST EXPENSE: | | | | | | | |
Deposits | 28,030 |
| | 38,390 |
| | 59,165 |
| | 79,096 |
|
Borrowed funds | 875 |
| | 643 |
| | 1,712 |
| | 1,217 |
|
Total interest expense | 28,905 |
| | 39,033 |
| | 60,877 |
| | 80,313 |
|
NET INTEREST INCOME | 67,930 |
| | 65,785 |
| | 136,346 |
| | 130,040 |
|
PROVISION FOR LOAN LOSSES | 10,000 |
| | 27,000 |
| | 28,000 |
| | 42,000 |
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 57,930 |
| | 38,785 |
| | 108,346 |
| | 88,040 |
|
NON-INTEREST INCOME: | | | | | | | |
Fees and service charges, net of amortization | 2,146 |
| | 3,284 |
| | 4,449 |
| | 6,097 |
|
Net gain on the sale of loans | 1,257 |
| | — |
| | 4,279 |
| | — |
|
Increase in and death benefits from bank owned life insurance contracts | 1,577 |
| | 1,610 |
| | 3,182 |
| | 3,222 |
|
Other | 1,126 |
| | 1,517 |
| | 2,443 |
| | 2,801 |
|
Total non-interest income | 6,106 |
| | 6,411 |
| | 14,353 |
| | 12,120 |
|
NON-INTEREST EXPENSE: | | | | | | | |
Salaries and employee benefits | 21,824 |
| | 21,049 |
| | 42,427 |
| | 41,434 |
|
Marketing services | 3,127 |
| | 2,377 |
| | 6,252 |
| | 4,754 |
|
Office property, equipment and software | 5,293 |
| | 5,073 |
| | 10,314 |
| | 10,071 |
|
Federal insurance premium and assessments | 3,243 |
| | 3,512 |
| | 6,957 |
| | 7,389 |
|
State franchise tax | 1,749 |
| | 1,716 |
| | 3,412 |
| | 2,705 |
|
Real estate owned expense, net | 1,516 |
| | 1,672 |
| | 2,681 |
| | 4,007 |
|
Appraisal and other loan review expenses | 1,102 |
| | 1,163 |
| | 1,785 |
| | 2,153 |
|
Other operating expenses | 7,375 |
| | 6,758 |
| | 13,935 |
| | 13,286 |
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Total non-interest expense | 45,229 |
| | 43,320 |
| | 87,763 |
| | 85,799 |
|
INCOME BEFORE INCOME TAXES | 18,807 |
| | 1,876 |
| | 34,936 |
| | 14,361 |
|
INCOME TAX EXPENSE | 6,017 |
| | 854 |
| | 10,993 |
| | 4,880 |
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NET INCOME | $ | 12,790 |
| | $ | 1,022 |
| | $ | 23,943 |
| | $ | 9,481 |
|
Earnings per share—basic and diluted | $ | 0.04 |
| | $ | — |
| | $ | 0.08 |
| | $ | 0.03 |
|
Weighted average shares outstanding | | | | | | | |
Basic | 301,753,966 |
| | 301,153,080 |
| | 301,664,171 |
| | 301,098,610 |
|
Diluted | 302,651,575 |
| | 301,706,570 |
| | 302,451,344 |
| | 301,547,664 |
|
See accompanying notes to unaudited interim consolidated financial statements.
TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
(In thousands)
|
| | | | | | | | | | | | | | | |
| For the Three Months Ended | | For the Six Months Ended |
| March 31, | | March 31, |
| 2013 | | 2012 | | 2013 | | 2012 |
Net income | $ | 12,790 |
| | $ | 1,022 |
| | $ | 23,943 |
| | $ | 9,481 |
|
Other comprehensive (loss) income, net of tax | | | | | | | |
Change in net unrealized gains on securities available for sale | (214 | ) | | (9 | ) | | (924 | ) | | (20 | ) |
Change in pension obligation | 90 |
| | 37 |
| | 180 |
| | 10,657 |
|
Total other comprehensive (loss) income | (124 | ) | | 28 |
| | (744 | ) | | 10,637 |
|
Total comprehensive income | $ | 12,666 |
| | $ | 1,050 |
| | $ | 23,199 |
| | $ | 20,118 |
|
See accompanying notes to unaudited interim consolidated financial statements.
TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (unaudited)
Six Months Ended March 31, 2013 and 2012
(In thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Common stock | | Paid-in capital | | Treasury stock | | Unallocated common stock held by ESOP | | Retained earnings | | Accumulated other
comprehensive
income (loss) | | Total shareholders’ equity |
Balance at September 30, 2011 | | $ | 3,323 |
| | $ | 1,686,216 |
| | $ | (282,090 | ) | | $ | (79,084 | ) | | $ | 461,836 |
| | $ | (16,277 | ) | | $ | 1,773,924 |
|
Net income | | — |
| | — |
| | — |
| | — |
| | 9,481 |
| | — |
| | 9,481 |
|
Other comprehensive income, net of tax | | — |
| | — |
| | — |
| | — |
| | — |
| | 10,637 |
| | 10,637 |
|
ESOP shares allocated or committed to be released | | — |
| | (183 | ) | | — |
| | 2,167 |
| | — |
| | — |
| | 1,984 |
|
Compensation costs for stock-based plans | | — |
| | 3,777 |
| | — |
| | — |
| | — |
| | — |
| | 3,777 |
|
Balance at March 31, 2012 | | $ | 3,323 |
| | $ | 1,689,810 |
| | $ | (282,090 | ) | | $ | (76,917 | ) | | $ | 471,317 |
| | $ | (5,640 | ) | | $ | 1,799,803 |
|
Balance at September 30, 2012 | | $ | 3,323 |
| | $ | 1,691,884 |
| | $ | (280,937 | ) | | $ | (74,751 | ) | | $ | 473,247 |
| | $ | (5,916 | ) | | $ | 1,806,850 |
|
Net income | | — |
| | — |
| | — |
| | — |
| | 23,943 |
| | — |
| | 23,943 |
|
Other comprehensive loss, net of tax | | — |
| | — |
| | — |
| | — |
| | — |
| | (744 | ) | | (744 | ) |
ESOP shares allocated or committed to be released | | — |
| | (91 | ) | | — |
| | 2,167 |
| | — |
| | — |
| | 2,076 |
|
Compensation costs for stock-based plans | | — |
| | 3,259 |
| | — |
| | — |
| | — |
| | — |
| | 3,259 |
|
Treasury stock allocated to restricted stock plan | | — |
| | (1,231 | ) | | 1,308 |
| | — |
| | (77 | ) | | — |
| | — |
|
Balance at March 31, 2013 | | $ | 3,323 |
| | $ | 1,693,821 |
| | $ | (279,629 | ) | | $ | (72,584 | ) | | $ | 497,113 |
| | $ | (6,660 | ) | | $ | 1,835,384 |
|
See accompanying notes to unaudited interim consolidated financial statements.
TFS FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(In thousands)
|
| | | | | | | | |
| | For the Six Months Ended |
| | March 31, |
| | 2013 | | 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | |
Net income | | $ | 23,943 |
| | $ | 9,481 |
|
Adjustments to reconcile net income to net cash provided by operating activities: | | | | |
ESOP and stock-based compensation expense | | 5,335 |
| | 5,761 |
|
Depreciation and amortization | | 12,197 |
| | 9,299 |
|
Deferred income tax expense | | — |
| | 300 |
|
Provision for loan losses | | 28,000 |
| | 42,000 |
|
Net gain on the sale of loans | | (4,279 | ) | | — |
|
Other net losses | | 1,987 |
| | 1,771 |
|
Principal repayments on and proceeds from sales of loans held for sale | | 36,744 |
| | — |
|
Loans originated for sale | | (31,589 | ) | | — |
|
Increase in bank owned life insurance contracts | | (3,191 | ) | | (3,208 | ) |
Net decrease (increase) in interest receivable and other assets | | 5,267 |
| | (8,986 | ) |
Net (decrease) increase in accrued expenses and other liabilities | | (8,207 | ) | | 1,335 |
|
Other | | 162 |
| | 416 |
|
Net cash provided by operating activities | | 66,369 |
| | 58,169 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | |
Loans originated | | (1,019,128 | ) | | (1,477,916 | ) |
Principal repayments on loans | | 1,186,955 |
| | 1,057,939 |
|
Proceeds from principal repayments and maturities of: | | | | |
Securities available for sale | | 111,624 |
| | 1,355 |
|
Securities held to maturity | | — |
| | 104,275 |
|
Proceeds from sale of: | | | | |
Loans | | 189,534 |
| | — |
|
Real estate owned | | 13,568 |
| | 10,377 |
|
Purchases of: | | | | |
Securities available for sale | | (152,210 | ) | | (12 | ) |
Securities held to maturity | | — |
| | (88,298 | ) |
Premises and equipment | | (4,646 | ) | | (1,300 | ) |
Other | | (12 | ) | | (21 | ) |
Net cash provided by (used in) investing activities | | 325,685 |
| | (393,601 | ) |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | |
Net (decrease) increase in deposits | | (224,137 | ) | | 107,266 |
|
Net decrease in borrowers’ advances for insurance and taxes | | (7,111 | ) | | (2,514 | ) |
Net decrease in principal and interest owed on loans serviced | | (12,650 | ) | | (989 | ) |
Net (decrease) increase in short term borrowed funds | | (305,892 | ) | | 279,238 |
|
Proceeds from long term borrowed funds | | 140,000 |
| | — |
|
Repayment of long term borrowed funds | | (6,380 | ) | | — |
|
Net cash (used in) provided by financing activities | | (416,170 | ) | | 383,001 |
|
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | | (24,116 | ) | | 47,569 |
|
CASH AND CASH EQUIVALENTS—Beginning of period | | 308,262 |
| | 294,846 |
|
CASH AND CASH EQUIVALENTS—End of period | | $ | 284,146 |
| | $ | 342,415 |
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | | | | |
Cash paid for interest on deposits | | $ | 59,482 |
| | $ | 79,546 |
|
Cash paid for interest on borrowed funds | | 1,604 |
| | 1,207 |
|
Cash paid for income taxes | | 13,200 |
| | 11,800 |
|
SUPPLEMENTAL SCHEDULES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | | | | |
Transfer of loans to real estate owned | | 12,460 |
| | 9,656 |
|
Transfer of loans from held for sale to held for investment | | 144,841 |
| | — |
|
Transfer of loans from held for investment to held for sale | | 323,027 |
| | 245,920 |
|
See accompanying notes to unaudited interim consolidated financial statements.
TFS FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands unless otherwise indicated)
TFS Financial Corporation (the “Holding Company”), a federally chartered stock holding company, conducts its principal activities through its wholly owned subsidiaries. The principal line of business of the Holding Company and its subsidiaries (collectively, “TFS Financial” or the “Company”) is retail consumer banking, including mortgage lending, deposit gathering, and other insignificant financial services. On March 31, 2013, approximately 73% of the Holding Company’s outstanding shares were owned by a federally chartered mutual holding company, Third Federal Savings and Loan Association of Cleveland, MHC (“Third Federal Savings, MHC”). The thrift subsidiary of TFS Financial is Third Federal Savings and Loan Association of Cleveland (the “Association”).
The accounting and reporting policies followed by the Company conform in all material respects to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and to general practices in the financial services industry. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses, the valuation of mortgage loan servicing rights, the valuation of deferred tax assets, and the determination of pension obligations and stock-based compensation are particularly subject to change.
The unaudited interim consolidated financial statements were prepared without an audit and reflect all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly the consolidated financial condition of TFS Financial at March 31, 2013, and its results of operations and cash flows for the periods presented. In accordance with Regulation S-X for interim financial information, these statements do not include certain information and footnote disclosures required for complete audited financial statements. The Holding Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012 contains consolidated financial statements and related notes, which should be read in conjunction with the accompanying interim consolidated financial statements. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2013 or for any other period.
Basic earnings per share is the amount of earnings available to each share of common stock outstanding during the reporting period. Diluted earnings per share is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares. For purposes of computing earnings per share amounts, outstanding shares include shares held by the public, shares held by the ESOP that have been allocated to participants or committed to be released for allocation to participants, the 227,119,132 shares held by Third Federal Savings, MHC, and, for purposes of computing dilutive earnings per share, stock options and restricted stock units with a dilutive impact. At March 31, 2013 and 2012, respectively, the ESOP held 7,258,440 and 7,691,780 shares that were neither allocated to participants nor committed to be released to participants.
The following is a summary of the Company's earnings per share calculations.
|
| | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended March 31, |
| | 2013 | | 2012 |
| | Income | | Shares | | Per share amount | | Income | | Shares | | Per share amount |
| | (Dollars in thousands, except per share data) |
Net income | | $ | 12,790 |
| | | | | | $ | 1,022 |
| | | | |
Less: income allocated to restricted stock units | | 68 |
| | | | | | 6 |
| | | | |
Basic earnings per share: | | | | | | | | | | | | |
Income available to common shareholders | | $ | 12,722 |
| | 301,753,966 |
| | $ | 0.04 |
| | $ | 1,016 |
| | 301,153,080 |
| | $ | — |
|
Diluted earnings per share: | | | | | | | | | | | | |
Effect of dilutive potential common shares | | | | 897,609 |
| | | | | | 553,490 |
| | |
Income available to common shareholders | | $ | 12,722 |
| | 302,651,575 |
| | $ | 0.04 |
| | $ | 1,016 |
| | 301,706,570 |
| | $ | — |
|
| | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | |
| | For the Six Months Ended March 31, |
| | 2013 | | 2012 |
| | Income | | Shares | | Per share amount | | Income | | Shares | | Per share amount |
| | (Dollars in thousands, except per share data) |
Net income | | $ | 23,943 |
| | | | | | $ | 9,481 |
| | | | |
Less: income allocated to restricted stock units | | 126 |
| | | | | | 47 |
| | | | |
Basic earnings per share: | | | | | | | | | | | | |
Income available to common shareholders | | $ | 23,817 |
| | 301,664,171 |
| | $ | 0.08 |
| | $ | 9,434 |
| | 301,098,610 |
| | $ | 0.03 |
|
Diluted earnings per share: | | | | | | | | | | | | |
Effect of dilutive potential common shares | | | | 787,173 |
| | | | | | 449,054 |
| | |
Income available to common shareholders | | $ | 23,817 |
| | 302,451,344 |
| | $ | 0.08 |
| | $ | 9,434 |
| | 301,547,664 |
| | $ | 0.03 |
|
The following is a summary of outstanding stock options and restricted stock units that are excluded from the computation of diluted earnings per share because their inclusion would be anti-dilutive. |
| | | | | | | | | | | |
| For the Three Months Ended March 31, | | For the Six Months Ended March 31, |
| 2013 | | 2012 | | 2013 | | 2012 |
Options to purchase shares | 5,395,509 |
| | 6,283,425 |
| | 6,509,209 |
| | 6,283,425 |
|
Restricted stock units | 30,000 |
| | 40,000 |
| | 30,000 |
| | 40,000 |
|
Investments available for sale are summarized as follows: |
| | | | | | | | | | | | | | | | |
| | March 31, 2013 |
| | Amortized Cost | | Gross Unrealized | | Fair Value |
| | Gains | | Losses | |
U.S. government and agency obligations | | $ | 2,000 |
| | $ | 48 |
| | $ | — |
| | $ | 2,048 |
|
Freddie Mac certificates | | 910 |
| | 61 |
| | — |
| | 971 |
|
Ginnie Mae certificates | | 14,182 |
| | 573 |
| | — |
| | 14,755 |
|
Real estate mortgage investment conduits (REMICs) | | 423,540 |
| | 1,825 |
| | (754 | ) | | 424,611 |
|
Fannie Mae certificates | | 6,599 |
| | 838 |
| | — |
| | 7,437 |
|
Money market accounts | | 7,066 |
| | — |
| | — |
| | 7,066 |
|
Total | | $ | 454,297 |
| | $ | 3,345 |
| | $ | (754 | ) | | $ | 456,888 |
|
|
| | | | | | | | | | | | | | | | |
| | September 30, 2012 |
| | Amortized
Cost | | Gross
Unrealized | | Fair
Value |
| | Gains | | Losses | |
U.S. government and agency obligations | | $ | 2,000 |
| | $ | 56 |
| | $ | — |
| | $ | 2,056 |
|
Freddie Mac certificates | | 922 |
| | 67 |
| | — |
| | 989 |
|
Ginnie Mae certificates | | 16,123 |
| | 663 |
| | — |
| | 16,786 |
|
REMICs | | 383,545 |
| | 2,772 |
| | (308 | ) | | 386,009 |
|
Fannie Mae certificates | | 7,125 |
| | 764 |
| | — |
| | 7,889 |
|
Money market accounts | | 7,701 |
| | — |
| | — |
| | 7,701 |
|
Total | | $ | 417,416 |
| | $ | 4,322 |
| | $ | (308 | ) | | $ | 421,430 |
|
Gross unrealized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time the individual securities have been in a continuous loss position, at March 31, 2013 and September 30, 2012, were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | |
| March 31, 2013 |
| Less Than 12 Months | | 12 Months or More | | Total |
| Estimated Fair Value | | Unrealized Loss | | Estimated Fair Value | | Unrealized Loss | | Estimated Fair Value | | Unrealized Loss |
Available for sale— | | | | | | | | | | | |
REMICs | $ | 148,548 |
| | $ | 626 |
| | $ | 18,744 |
| | $ | 128 |
| | $ | 167,292 |
| | $ | 754 |
|
Total | $ | 148,548 |
| | $ | 626 |
| | $ | 18,744 |
| | $ | 128 |
| | $ | 167,292 |
| | $ | 754 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| September 30, 2012 |
| Less Than 12 Months | | 12 Months or More | | Total |
| Estimated Fair Value | | Unrealized Loss | | Estimated Fair Value | | Unrealized Loss | | Estimated Fair Value | | Unrealized Loss |
Available for sale— | | | | | | | | |
| |
|
REMICs | $ | 80,219 |
| | $ | 291 |
| | $ | 6,550 |
| | $ | 17 |
| | $ | 86,769 |
| | $ | 308 |
|
Total | $ | 80,219 |
| | $ | 291 |
| | $ | 6,550 |
| | $ | 17 |
| | $ | 86,769 |
| | $ | 308 |
|
| |
4. | LOANS AND ALLOWANCE FOR LOAN LOSSES |
Loans held for investment consist of the following:
|
| | | | | | | | |
| | March 31,
2013 | | September 30,
2012 |
Real estate loans: | | | | |
Residential non-Home Today | | $ | 7,743,482 |
| | $ | 7,943,165 |
|
Residential Home Today | | 193,154 |
| | 208,325 |
|
Home equity loans and lines of credit | | 2,001,820 |
| | 2,155,496 |
|
Construction | | 54,728 |
| | 69,152 |
|
Real estate loans | | 9,993,184 |
| | 10,376,138 |
|
Consumer and other loans | | 4,276 |
| | 4,612 |
|
Less: | | | | |
Deferred loan fees—net | | (17,241 | ) | | (18,561 | ) |
Loans-in-process (“LIP”) | | (27,748 | ) | | (36,736 | ) |
Allowance for loan losses | | (101,217 | ) | | (100,464 | ) |
Loans held for investment, net | | $ | 9,851,254 |
| | $ | 10,224,989 |
|
At March 31, 2013 and September 30, 2012, respectively, $96,882 and $124,528 of long-term loans were classified as mortgage loans held for sale.
A large concentration of the Company’s lending is in Ohio and Florida. As of March 31, 2013 and September 30, 2012, the percentages of residential real estate loans held in Ohio were both 77%, and the percentages held in Florida were both 17%, respectively. As of both March 31, 2013 and September 30, 2012, home equity loans and lines of credit were concentrated in the states of Ohio (39%), Florida (29%) and California (12%), respectively. The economic conditions and market for real estate in those states, including to a greater extent Florida, have impacted the ability of borrowers in those areas to repay their loans.
Home Today is an affordable housing program targeted to benefit low- and moderate-income home buyers. Through this program the Association provided the majority of loans to borrowers who would not otherwise qualify for the Association’s loan products, generally because of low credit scores. Although the credit profiles of borrowers in the Home Today program might be described as sub-prime, Home Today loans generally contain the same features as loans offered to our non-Home Today borrowers. Borrowers in the Home Today program must complete financial management education and counseling and must be referred to the Association by a sponsoring organization with which the Association has partnered as part of the program. Borrowers must also meet a minimum credit score threshold. Because the Association applied less stringent underwriting and credit standards to the majority of Home Today loans, loans originated under the program have greater credit risk than its traditional residential real estate mortgage loans. While effective March 27, 2009, the Home Today underwriting guidelines were changed to be substantially the same as the Association’s traditional first mortgage product, the majority of loans in this program were originated prior to that date. As of March 31, 2013 and September 30, 2012, the principal balance of Home Today loans originated prior to March 27, 2009 was $189,534 and $204,733, respectively. The Association does not offer, and has not offered, loan products frequently considered to be designed to target sub-prime borrowers containing features such as higher fees or higher rates, negative amortization, a loan-to-value ratio greater than 100%, or pay option adjustable-rate mortgages.
The recorded investment of loan receivables in non-accrual status is summarized in the following table. Balances are net of deferred fees.
|
| | | | | | | |
| March 31,
2013 | | September 30,
2012 |
Real estate loans: | | | |
Residential non-Home Today | $ | 98,268 |
| | $ | 105,780 |
|
Residential Home Today | 37,125 |
| | 41,087 |
|
Home equity loans and lines of credit | 30,386 |
| | 35,316 |
|
Construction | 220 |
| | 377 |
|
Total real estate loans | 165,999 |
| | 182,560 |
|
Consumer and other loans | — |
| | — |
|
Total non-accrual loans | $ | 165,999 |
| | $ | 182,560 |
|
Loans are placed in non-accrual status when they are contractually 90 days or more past due. Loans modified in troubled debt restructurings that were in non-accrual status prior to the restructurings remain in non-accrual status for a minimum of six months after restructuring. Additionally, home equity loans and lines of credit where the customer has a severely delinquent first mortgage and loans in Chapter 7 bankruptcy status where all borrowers have been discharged of their obligation are placed in non-accrual status. At March 31, 2013 and September 30, 2012, respectively, the recorded investment in non-accrual loans includes $46,956 and $47,742, in troubled debt restructurings which are current according to the terms of their agreement of which $30,922 and $30,631 are performing loans in Chapter 7 bankruptcy status where all borrowers have been discharged of their obligations. Additionally, at March 31, 2013 and September 30, 2012, the recorded investment in non-accrual status loans includes $4,877 and $8,807, respectively, of performing second lien loans subordinate to first mortgages delinquent greater than 90 days.
Interest on loans in accrual status, including certain loans individually reviewed for impairment, is recognized in interest income as it accrues, on a daily basis. Accrued interest on loans in non-accrual status is reversed by a charge to interest income and income is subsequently recognized only to the extent cash payments are received. Cash payments on loans in non-accrual status are applied to the oldest scheduled, unpaid payment first. Cash payments on loans with a partial charge-off are applied fully to principal, then to recovery of the charged off amount prior to interest income being recognized. A non-accrual loan is generally returned to accrual status when contractual payments are less than 90 days past due. However, a loan may remain in non-accrual status when collectability is uncertain, such as a troubled debt restructuring that has not met minimum payment requirements, a loan with a partial charge-off, an equity loan or line of credit with a delinquent first mortgage greater than 90 days, or a loan in Chapter 7 bankruptcy status where all borrowers have been discharged of their obligation. The number of days past due is determined by the number of scheduled payments that remain unpaid, assuming a period of 30 days between each scheduled payment.
An age analysis of the recorded investment in loan receivables that are past due at March 31, 2013 and September 30, 2012 is summarized in the following tables. When a loan is more than one month past due on its scheduled payments, the loan is considered 30 days or more past due. Balances are net of deferred fees and any applicable loans-in-process. |
| | | | | | | | | | | | | | | | | | | | | | | |
| 30-59 Days Past Due | | 60-89 Days Past Due | | 90 Days or More Past Due | | Total Past Due | | Current | | Total |
March 31, 2013 | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | |
Residential non-Home Today | $ | 11,653 |
| | $ | 5,352 |
| | $ | 68,539 |
| | $ | 85,544 |
| | $ | 7,636,382 |
| | $ | 7,721,926 |
|
Residential Home Today | 8,049 |
| | 2,409 |
| | 23,251 |
| | 33,709 |
| | 156,273 |
| | 189,982 |
|
Home equity loans and lines of credit | 7,475 |
| | 3,194 |
| | 14,778 |
| | 25,447 |
| | 1,984,313 |
| | 2,009,760 |
|
Construction | — |
| | — |
| | 220 |
| | 220 |
| | 26,307 |
| | 26,527 |
|
Total real estate loans | 27,177 |
| | 10,955 |
| | 106,788 |
| | 144,920 |
| | 9,803,275 |
| | 9,948,195 |
|
Consumer and other loans | — |
| | — |
| | — |
| | — |
| | 4,276 |
| | 4,276 |
|
Total | $ | 27,177 |
| | $ | 10,955 |
| | $ | 106,788 |
| | $ | 144,920 |
| | $ | 9,807,551 |
| | $ | 9,952,471 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
| 30-59 Days Past Due | | 60-89 Days Past Due | | 90 Days or More Past Due | | Total Past Due | | Current | | Total |
September 30, 2012 | | | | | | | | | | | |
Real estate loans: | | | | | | | | | | | |
Residential non-Home Today | $ | 15,015 |
| | $ | 10,661 |
| | $ | 74,807 |
| | $ | 100,483 |
| | $ | 7,818,927 |
| | $ | 7,919,410 |
|
Residential Home Today | 10,874 |
| | 4,736 |
| | 27,517 |
| | 43,127 |
| | 161,743 |
| | 204,870 |
|
Home equity loans and lines of credit | 8,676 |
| | 3,210 |
| | 16,587 |
| | 28,473 |
| | 2,136,255 |
| | 2,164,728 |
|
Construction | — |
| | — |
| | 377 |
| | 377 |
| | 31,456 |
| | 31,833 |
|
Total real estate loans | 34,565 |
| | 18,607 |
| | 119,288 |
| | 172,460 |
| | 10,148,381 |
| | 10,320,841 |
|
Consumer and other loans | — |
| | — |
| | — |
| | — |
| | 4,612 |
| | 4,612 |
|
Total | $ | 34,565 |
| | $ | 18,607 |
| | $ | 119,288 |
| | $ | 172,460 |
| | $ | 10,152,993 |
| | $ | 10,325,453 |
|
In an October 2011 directive, the OCC required all specific valuation allowances (“SVA”) on collateral-dependent loans (SVAs established when the recorded investment in an impaired loan exceeded the measured value of the collateral) maintained by savings institutions to be charged off by March 31, 2012. As permitted, the Company elected to early-adopt this methodology effective for the quarter ended December 31, 2011. As a result, reported loan charge-offs for the six months ended March 31, 2012 included the charge-off of specific valuation allowances, which had a balance of $55,507 at September 30, 2011. The one-time SVA related charge-off did not impact the provision for loan losses for the six months ended March 31, 2012; however, reported loan charge-offs during the six months ended March 31, 2012 increased and the allowance for loan losses decreased accordingly.
Activity in the allowance for loan losses is summarized as follows:
|
| | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended March 31, 2013 |
| Beginning Balance | | Provisions | | Charge-offs | | Recoveries | | Ending Balance |
Real estate loans: | | | | | | | | | |
Residential non-Home Today | $ | 33,091 |
| | $ | 6,084 |
| | $ | (5,264 | ) | | $ | 261 |
| | $ | 34,172 |
|
Residential Home Today | 24,383 |
| | 7,138 |
| | (3,839 | ) | | 61 |
| | 27,743 |
|
Home equity loans and lines of credit | 47,246 |
| | (3,073 | ) | | (6,670 | ) | | 1,465 |
| | 38,968 |
|
Construction | 481 |
| | (149 | ) | | (48 | ) | | 50 |
| | 334 |
|
Total real estate loans | 105,201 |
| | 10,000 |
| | (15,821 | ) | | 1,837 |
| | 101,217 |
|
Consumer and other loans | — |
| | — |
| | — |
| | — |
| | — |
|
Total | $ | 105,201 |
| | $ | 10,000 |
| | $ | (15,821 | ) | | $ | 1,837 |
| | $ | 101,217 |
|
| | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended March 31, 2012 |
| Beginning Balance | | Provisions | | Charge-offs | | Recoveries | | Ending Balance |
Real estate loans: | | | | | | | | | |
Residential non-Home Today | $ | 29,227 |
| | $ | 8,462 |
| | $ | (7,626 | ) | | $ | 239 |
| | $ | 30,302 |
|
Residential Home Today | 20,092 |
| | 5,814 |
| | (5,820 | ) | | 32 |
| | 20,118 |
|
Home equity loans and lines of credit | 46,435 |
| | 12,204 |
| | (10,349 | ) | | 1,041 |
| | 49,331 |
|
Construction | 1,129 |
| | 520 |
| | (106 | ) | | 2 |
| | 1,545 |
|
Total real estate loans | 96,883 |
| | 27,000 |
| | (23,901 | ) | | 1,314 |
| | 101,296 |
|
Consumer and other loans | — |
| | — |
| | — |
| | — |
| | — |
|
Total | $ | 96,883 |
| | $ | 27,000 |
| | $ | (23,901 | ) | | $ | 1,314 |
| | $ | 101,296 |
|
| | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
| For the Six Months Ended March 31, 2013 |
| Beginning Balance | | Provisions | | Charge-offs | | Recoveries | | Ending Balance |
Real estate loans: | | | | | | | | | |
Residential non-Home Today | $ | 31,618 |
| | $ | 11,861 |
| | $ | (9,899 | ) | | $ | 592 |
| | $ | 34,172 |
|
Residential Home Today | 22,588 |
| | 12,376 |
| | (7,373 | ) | | 152 |
| | 27,743 |
|
Home equity loans and lines of credit | 45,508 |
| | 4,186 |
| | (12,978 | ) | | 2,252 |
| | 38,968 |
|
Construction | 750 |
| | (423 | ) | | (53 | ) | | 60 |
| | 334 |
|
Total real estate loans | 100,464 |
| | 28,000 |
| | (30,303 | ) | | 3,056 |
| | 101,217 |
|
Consumer and other loans | — |
| | — |
| | — |
| | — |
| | — |
|
Total | $ | 100,464 |
| | $ | 28,000 |
| | $ | (30,303 | ) | | $ | 3,056 |
| | $ | 101,217 |
|
|
| | | | | | | | | | | | | | | | | | | |
| For the Six Months Ended March 31, 2012 |
| Beginning Balance | | Provisions | | Charge-offs | | Recoveries | | Ending Balance |
Real estate loans: | | | | | | | | | |
Residential non-Home Today | $ | 49,484 |
| | $ | 15,640 |
| | $ | (35,164 | ) | | $ | 342 |
| | $ | 30,302 |
|
Residential Home Today | 31,025 |
| | 18,717 |
| | (29,708 | ) | | 84 |
| | 20,118 |
|
Home equity loans and lines of credit | 74,071 |
| | 7,307 |
| | (33,573 | ) | | 1,526 |
| | 49,331 |
|
Construction | 2,398 |
| | 336 |
| | (1,192 | ) | | 3 |
| | 1,545 |
|
Total real estate loans | 156,978 |
| | 42,000 |
| | (99,637 | ) | | 1,955 |
| | 101,296 |
|
Consumer and other loans | — |
| | — |
| | — |
| | — |
| | — |
|
Total | $ | 156,978 |
| | $ | 42,000 |
| | $ | (99,637 | ) | | $ | 1,955 |
| | $ | 101,296 |
|
The recorded investment in loan receivables at March 31, 2013 and September 30, 2012 is summarized in the following table. The table provides details of the recorded balances according to the method of evaluation used for determining the allowance for loan losses, distinguishing between determinations made by evaluating individual loans and determinations made by evaluating groups of loans not individually evaluated. Balances of recorded investments are net of deferred fees and any applicable loans-in-process. |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | March 31, 2013 | | September 30, 2012 |
| | Individually | | Collectively | | Total | | Individually | | Collectively | | Total |
Real estate loans: | | | | | | | | | | | | |
Residential non-Home Today | | $ | 156,407 |
| | $ | 7,565,519 |
| | $ | 7,721,926 |
| | $ | 165,121 |
| | $ | 7,754,289 |
| | $ | 7,919,410 |
|
Residential Home Today | | 86,651 |
| | 103,331 |
| | 189,982 |
| | 95,355 |
| | 109,515 |
| | 204,870 |
|
Home equity loans and lines of credit | | 32,836 |
| | 1,976,924 |
| | 2,009,760 |
| | 37,016 |
| | 2,127,712 |
| | 2,164,728 |
|
Construction | | 951 |
| | 25,576 |
| | 26,527 |
| | 1,378 |
| | 30,455 |
| | 31,833 |
|
Total real estate loans | | 276,845 |
| | 9,671,350 |
| | 9,948,195 |
| | 298,870 |
| | 10,021,971 |
| | 10,320,841 |
|
Consumer and other loans | | — |
| | 4,276 |
| | 4,276 |
| | — |
| | 4,612 |
| | 4,612 |
|
Total | | $ | 276,845 |
| | $ | 9,675,626 |
| | $ | 9,952,471 |
| | $ | 298,870 |
| | $ | 10,026,583 |
| | $ | 10,325,453 |
|
An analysis of the allowance for loan losses at March 31, 2013 and September 30, 2012 is summarized in the following table. The analysis provides details of the allowance for loan losses according to the method of evaluation, distinguishing between allowances for loan losses determined by evaluating individual loans and allowances for loan losses determined by evaluating groups of loans not individually evaluated.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | March 31, 2013 | | September 30, 2012 |
| | Individually | | Collectively | | Total | | Individually | | Collectively | | Total |
Real estate loans: | | | | | | | | | | | | |
Residential non-Home Today | | $ | 7,471 |
| | $ | 26,701 |
| | $ | 34,172 |
| | $ | 6,220 |
| | $ | 25,398 |
| | $ | 31,618 |
|
Residential Home Today | | 8,519 |
| | 19,224 |
| | 27,743 |
| | 9,747 |
| | 12,841 |
| | 22,588 |
|
Home equity loans and lines of credit | | 1,598 |
| | 37,370 |
| | 38,968 |
| | 3,928 |
| | 41,580 |
| | 45,508 |
|
Construction | | 32 |
| | 302 |
| | 334 |
| | 41 |
| | 709 |
| | 750 |
|
Total real estate loans | | 17,620 |
| | 83,597 |
| | 101,217 |
| | 19,936 |
| | 80,528 |
| | 100,464 |
|
Consumer and other loans | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
Total | | $ | 17,620 |
| | $ | 83,597 |
| | $ | 101,217 |
| | $ | 19,936 |
| | $ | 80,528 |
| | $ | 100,464 |
|
At March 31, 2013 and September 30, 2012, individually evaluated loans that required an allowance were comprised only of loans evaluated for impairment based on the present value of cash flows, such as performing troubled debt restructurings, and loans with a further deterioration in the fair value of collateral not yet identified as uncollectible. All other individually evaluated loans received a charge-off if applicable.
Because many variables are considered in determining the appropriate level of general valuation allowances, directional changes in individual considerations do not always align with the directional change in the balance of a particular component of the general valuation allowance. At March 31, 2013 and September 30, 2012, respectively, allowances on individually reviewed loans evaluated for impairment based on the present value of cash flows, such as performing troubled debt restructurings were $17,160 and $17,720; allowances on performing second liens subordinate to first mortgages delinquent greater than 90 days were $0 and $1,550; and allowances on loans with further deteriorations in the fair value of collateral not yet identified as uncollectible were $460 and $666.
Residential non-Home Today mortgage loans represent the largest portion of the residential real estate portfolio. The Company believes overall credit risk is low based on the nature, composition, collateral, products, lien position and performance of the portfolio. The portfolio does not include loan types or structures that have experienced severe performance problems at other financial institutions (e.g., sub-prime, no documentation or pay option adjustable rate mortgages).
As described earlier in this footnote, Home Today loans have greater credit risk than traditional residential real estate mortgage loans. At March 31, 2013 and September 30, 2012, respectively, approximately 52% and 54% of Home Today loans include private mortgage insurance coverage. The majority of the coverage on these loans was provided by PMI Mortgage Insurance Co. (“PMIC”), which the Arizona Department of Insurance seized in 2011 and indicated that all claims payments would be reduced by 50%. In late March 2013, PMIC notified the Association that all payments would be paid at 55% of the claim with the remainder deferred. Appropriate adjustments have been made to the Association’s affected valuation allowances and charge-offs, and estimated loss severity factors were adjusted accordingly for loans evaluated collectively. The amount of loans in our owned portfolio covered by mortgage insurance provided by PMIC as of March 31, 2013 and September 30, 2012, respectively, was $266,076 and $303,621 of which $240,775 and $273,225 was current. The amount of loans in our owned portfolio covered by mortgage insurance provided by Mortgage Guaranty Insurance Corporation ("MGIC") as of March 31, 2013 and September 30, 2012, respectively, was $104,102 and $118,055 of which $102,451 and $116,132 was current. As of March 31, 2013, MGIC's long-term debt rating, as published by the major credit rating agencies, did not meet the requirements to qualify as "investment grade"; however, MGIC continues to make claims payments in accordance with its contractual obligations and the Association has not increased its estimated loss severity factors related to MGIC's claim paying ability. No other loans were covered by mortgage insurers that were deferring claim payments or which we assessed as being non-investment grade.
Home equity lines of credit represent a significant portion of the residential real estate portfolio. The state of the economy and low housing prices continue to have an adverse impact on this portfolio since the home equity lines generally are in a second lien position. Between June 28, 2010 and March 20, 2012, due to the deterioration in overall housing conditions including concerns for loans and lines in a second lien position, home equity lines of credit and home equity loans were not offered by the Association. Beginning in March, 2012, the Association offered redesigned home equity lines of credit to qualifying existing home equity customers, subject to certain property and credit performance conditions. In February 2013 we
further modified the product design and in April 2013 we extended the offer to both existing home equity customers and new consumers in Ohio, Florida and selected counties in Kentucky.
Construction loans generally have greater credit risk than traditional residential real estate mortgage loans. The repayment of these loans depends upon the sale of the property to third parties or the availability of permanent financing upon completion of all improvements. In the event we make a loan on property that is not yet approved for the planned development, there is the risk that approvals will not be granted or will be delayed. These events may adversely affect the borrower and the collateral value of the property. Construction loans also expose the Association to the risk that improvements will not be completed on time in accordance with specifications and projected costs. In addition, the ultimate sale or rental of the property may not occur as anticipated. Effective August 30, 2011, the Association made the strategic decision to exit the commercial construction loan business and ceased accepting new builder relationships. Builder commitments in place at that time were honored for a limited period, giving our customers the ability to secure new borrowing relationships.
The recorded investment and the unpaid principal balance of impaired loans, including those whose terms have been modified in troubled debt restructurings, as of March 31, 2013 and September 30, 2012 are summarized as follows. Balances of recorded investments are net of deferred fees.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | March 31, 2013 | | September 30, 2012 |
| | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | Recorded Investment | | Unpaid Principal Balance | | Related Allowance |
With no related allowance recorded: | | | | | | | | | | | | |
Residential non-Home Today | | $ | 91,888 |
| | $ | 121,694 |
| | $ | — |
| | $ | 96,227 |
| | $ | 126,806 |
| | $ | — |
|
Residential Home Today | | 34,565 |
| | 68,046 |
| | — |
| | 36,578 |
| | 68,390 |
| | — |
|
Home equity loans and lines of credit | | 25,630 |
| | 50,076 |
| | — |
| | 24,397 |
| | 41,974 |
| | — |
|
Construction | | 551 |
| | 793 |
| | — |
| | 970 |
| | 1,349 |
| | — |
|
Consumer and other loans | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
Total | | $ | 152,634 |
| | $ | 240,609 |
| | $ | — |
| | $ | 158,172 |
| | $ | 238,519 |
| | $ | — |
|
With an allowance recorded: | | | | | | | | | | | | |
Residential non-Home Today | | $ | 64,519 |
| | $ | 66,004 |
| | $ | 7,471 |
| | $ | 68,894 |
| | $ | 70,577 |
| | $ | 6,220 |
|
Residential Home Today | | 52,086 |
| | 53,156 |
| | 8,519 |
| | 58,777 |
| | 60,104 |
| | 9,747 |
|
Home equity loans and lines of credit | | 7,206 |
| | 7,654 |
| | 1,598 |
| | 12,619 |
| | 13,554 |
| | 3,928 |
|
Construction | | 400 |
| | 400 |
| | 32 |
| | 408 |
| | 408 |
| | 41 |
|
Consumer and other loans | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
Total | | $ | 124,211 |
| | $ | 127,214 |
| | $ | 17,620 |
| | $ | 140,698 |
| | $ | 144,643 |
| | $ | 19,936 |
|
Total impaired loans: | | | | | | | | | | | | |
Residential non-Home Today | | $ | 156,407 |
| | $ | 187,698 |
| | $ | 7,471 |
| | $ | 165,121 |
| | $ | 197,383 |
| | $ | 6,220 |
|
Residential Home Today | | 86,651 |
| | 121,202 |
| | 8,519 |
| | 95,355 |
| | 128,494 |
| | 9,747 |
|
Home equity loans and lines of credit | | 32,836 |
| | 57,730 |
| | 1,598 |
| | 37,016 |
| | 55,528 |
| | 3,928 |
|
Construction | | 951 |
| | 1,193 |
| | 32 |
| | 1,378 |
| | 1,757 |
| | 41 |
|
Consumer and other loans | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
Total | | $ | 276,845 |
| | $ | 367,823 |
| |