
	March 31, 2023				September 30, 2022
	Amount		Percent		Amount		Percent
Mortgage loans:
One- to four-family (1)	$	216,639	16.3	%	$	176,116	14.1	%
Multi-family	103,870		7.8		95,025		7.6
Commercial	547,876		41.2		536,650		42.8
Construction - custom and owner/builder	124,071		9.4		119,240		9.5
Construction - speculative one- to four-family	11,343		0.9		12,254		1.0
Construction - commercial	31,458		2.4		40,364		3.2
Construction - multi-family	83,051		6.2		64,480		5.1
Construction - land development	17,018		1.3		19,280		1.5
Land	24,520		1.8		26,854		2.1
Total mortgage loans	1,159,846		87.3		1,090,263		86.9

Consumer loans:
Home equity and second mortgage	36,896		2.8		35,187		2.8
Other	2,283		0.2		2,128		0.2
Total consumer loans	39,179		3.0		37,315		3.0

Commercial loans:
Commercial business	129,306		9.7		125,039		10.0
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans	572		—		1,001		0.1
Total commercial loans	129,878		9.7		126,040		10.1

Total loans receivable	1,328,903		100.0	%	1,253,618		100.0	%
Less:
Undisbursed portion of construction loans in process	99,253				103,168
Deferred loan origination fees, net	4,759				4,321
Allowance for loan losses	14,698				13,703
Subtotal	118,710				121,192
Loans receivable, net	$	1,210,193			$	1,132,426
_____________________________
(1) Does not include one- to four-family loans held for sale totaling $200 and $748 at March 31, 2023 and September 30, 2022, respectively.


	Three Months Ended March 31, 2023
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,888	$	164	$	—	$	—	$	2,052
Multi-family	871		67		—		—		938
Commercial	6,794		110		—		—		6,904
Construction – custom and owner/builder	673		53		—		—		726
Construction – speculative one- to four-family	125		(4)		—		—		121
Construction – commercial	323		(56)		—		—		267
Construction – multi-family	577		85		—		—		662
Construction – land development	222		23		—		—		245
Land	383		(20)		—		—		363
Consumer loans:
Home equity and second mortgage	493		14		—		—		507
Other	47		1		(1)		—		47
Commercial business loans	1,833		38		(5)		—		1,866

Total	$	14,229	$	475	$	(6)	$	—	$	14,698


	Six Months Ended March 31, 2023
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	1,658	$	394	$	—	$	—	$	2,052
Multi-family	855		83		—		—		938
Commercial	6,682		222		—		—		6,904
Construction – custom and owner/builder	675		51		—		—		726
Construction – speculative one- to four-family	130		(9)		—		—		121
Construction – commercial	343		(76)		—		—		267
Construction – multi-family	447		215		—		—		662
Construction – land development	233		12		—		—		245
Land	397		(34)		—		—		363
Consumer loans:
Home equity and second mortgage	440		67		—		—		507
Other	42		6		(1)		—		47
Commercial business loans	1,801		69		(5)		1		1,866

Total	$	13,703	$	1,000	$	(6)	$	1	$	14,698


	Three Months Ended March 31, 2022
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,237	$	10	$	—	$	—	$	1,247
Multi-family	748		(13)		—		—		735
Commercial	6,807		124		—		—		6,931
Construction – custom and owner/builder	671		15		—		—		686
Construction – speculative one- to four-family	153		(27)		—		—		126
Construction – commercial	593		(130)		—		—		463
Construction – multi-family	460		(24)		—		—		436
Construction – land development	157		(31)		—		—		126
Land	435		(58)		—		—		377
Consumer loans:
Home equity and second mortgage	532		(63)		—		—		469
Other	48		(4)		(1)		1		44
Commercial business loans	1,627		201		(49)		14		1,793

Total	$	13,468	$	—	$	(50)	$	15	$	13,433


	Six Months Ended March 31, 2022
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	1,154	$	93	$	—	$	—	$	1,247
Multi-family	765		(30)		—		—		735
Commercial	6,813		118		—		—		6,931
Construction – custom and owner/builder	644		42		—		—		686
Construction – speculative one- to four-family	188		(62)		—		—		126
Construction – commercial	784		(321)		—		—		463
Construction – multi-family	436		—		—		—		436
Construction – land development	124		2		—		—		126
Land	470		(93)		—		—		377
Consumer loans:
Home equity and second mortgage	528		(59)		—		—		469
Other	50		(5)		(2)		1		44
Commercial business loans	1,513		315		(49)		14		1,793

Total	$	13,469	$	—	$	(51)	$	15	$	13,433


	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
March 31, 2023
Mortgage loans:
One- to four-family	$	—	$	2,052	$	2,052	$	378	$	216,261	$	216,639
Multi-family	—		938		938		—		103,870		103,870
Commercial	—		6,904		6,904		3,006		544,870		547,876
Construction – custom and owner/builder	—		726		726		—		71,750		71,750
Construction – speculative one- to four-family	—		121		121		—		7,785		7,785
Construction – commercial	—		267		267		—		23,145		23,145
Construction – multi-family	—		662		662		—		50,758		50,758
Construction – land development	—		245		245		—		14,250		14,250
Land	—		363		363		459		24,061		24,520
Consumer loans:
Home equity and second mortgage	—		507		507		381		36,515		36,896
Other	—		47		47		1		2,282		2,283
Commercial business loans	123		1,743		1,866		293		129,013		129,306
SBA PPP loans	—		—		—		—		572		572
Total	$	123	$	14,575	$	14,698	$	4,518	$	1,225,132	$	1,229,650


September 30, 2022
Mortgage loans:
One- to four-family	$	—	$	1,658	$	1,658	$	388	$	175,728	$	176,116
Multi-family	—		855		855		—		95,025		95,025
Commercial	—		6,682		6,682		2,988		533,662		536,650
Construction – custom and owner/builder	—		675		675		—		67,091		67,091
Construction – speculative one- to four-family	—		130		130		—		8,364		8,364
Construction – commercial	—		343		343		—		29,059		29,059
Construction – multi-family	—		447		447		—		34,354		34,354
Construction – land development	—		233		233		—		13,582		13,582
Land	—		397		397		450		26,404		26,854
Consumer loans:
Home equity and second mortgage	—		440		440		394		34,793		35,187
Other	—		42		42		3		2,125		2,128
Commercial business loans	127		1,674		1,801		309		124,730		125,039
SBA PPP loans	—		—		—		—		1,001		1,001
Total	$	127	$	13,576	$	13,703	$	4,532	$	1,145,918	$	1,150,450


	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
March 31, 2023
Mortgage loans:
One- to four-family	$	—	$	—	$	378	$	—	$	378	$	216,261	$	216,639
Multi-family	—		—		—		—		—		103,870		103,870
Commercial	—		—		694		—		694		547,182		547,876
Construction – custom and owner/builder	—		—		—		—		—		71,750		71,750
Construction – speculative one- to four-family	—		—		—		—		—		7,785		7,785
Construction – commercial	—		—		—		—		—		23,145		23,145
Construction – multi-family	—		—		—		—		—		50,758		50,758
Construction – land development	—		—		—		—		—		14,250		14,250
Land	—		—		362		—		362		24,158		24,520
Consumer loans:
Home equity and second mortgage	28		—		241		—		269		36,627		36,896
Other	—		—		1		—		1		2,282		2,283
Commercial business loans	194		—		293		—		487		128,819		129,306
SBA PPP loans	—		—		—		—		—		572		572
Total	$	222	$	—	$	1,969	$	—	$	2,191	$	1,227,459	$	1,229,650


September 30, 2022
Mortgage loans:
One- to four-family	$	—	$	—	$	388	$	—	$	388	$	175,728	$	176,116
Multi-family	—		—		—		—		—		95,025		95,025
Commercial	—		—		657		—		657		535,993		536,650
Construction – custom and owner/builder	—		—		—		—		—		67,091		67,091
Construction – speculative one- to four-family	—		—		—		—		—		8,364		8,364
Construction – commercial	—		—		—		—		—		29,059		29,059
Construction – multi-family	—		—		—		—		—		34,354		34,354
Construction – land development	—		—		—		—		—		13,582		13,582
Land	—		—		450		—		450		26,404		26,854
Consumer loans:
Home equity and second mortgage	37		—		252		—		289		34,898		35,187
Other	—		—		3		—		3		2,125		2,128
Commercial business loans	—		—		309		—		309		124,730		125,039
SBA PPP loans	—		—		—		—		—		1,001		1,001
Total	$	37	$	—	$	2,059	$	—	$	2,096	$	1,148,354	$	1,150,450

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:

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 bankable assets 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 March 31, 2023 and September 30, 2022, there were no loans classified as loss.


	Loan Grades
March 31, 2023	Pass		Watch		Special Mention		Substandard		Total
Mortgage loans:
One- to four-family	$	216,226	$	33	$	—	$	380	$	216,639
Multi-family	103,870		—		—		—		103,870
Commercial	534,258		8,103		—		5,515		547,876
Construction – custom and owner/builder	68,505		3,245		—		—		71,750
Construction – speculative one- to four-family	7,785		—		—		—		7,785
Construction – commercial	23,145		—		—		—		23,145
Construction – multi-family	50,758		—		—		—		50,758
Construction – land development	14,231		—		—		19		14,250
Land	23,551		510		—		459		24,520
Consumer loans:
Home equity and second mortgage	36,416		34		—		446		36,896
Other	2,255		27		—		1		2,283
Commercial business loans	128,997		—		—		309		129,306
SBA PPP loans	540		32		—		—		572
Total	$	1,210,537	$	11,984	$	—	$	7,129	$	1,229,650

September 30, 2022
Mortgage loans:
One- to four-family	$	175,687	$	38	$	—	$	391	$	176,116
Multi-family	95,025		—		—		—		95,025
Commercial	522,741		7,940		237		5,732		536,650
Construction – custom and owner/builder	65,249		1,842		—		—		67,091
Construction – speculative one- to four-family	8,364		—		—		—		8,364
Construction – commercial	29,059		—		—		—		29,059
Construction – multi-family	34,354		—		—		—		34,354
Construction – land development	13,557		—		—		25		13,582
Land	25,882		522		—		450		26,854
Consumer loans:
Home equity and second mortgage	34,709		19		—		459		35,187
Other	2,063		62		—		3		2,128
Commercial business loans	124,712		—		—		327		125,039
SBA PPP loans	1,001		—		—		—		1,001
Total	$	1,132,403	$	10,423	$	237	$	7,387	$	1,150,450

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 that 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. The categories of non-accrual loans and impaired loans overlap, although they are not identical.


	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		Quarter to Date ("QTD") Average Recorded Investment (1)		Year to Date ("YTD") Average Recorded Investment (2)		QTD Interest Income Recognized (1)		YTD Interest Income Recognized (2)		QTD Cash Basis Interest Income Recognized (1)		YTD Cash Basis Interest Income Recognized (2)
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	378	$	421	$	—	$	381	$	386	$	7	$	14	$	7	$	14

Commercial	3,006		3,006		—		2,890		2,984		40		81		30		63




Land	459		459		—		442		438		2		2		2		2
Consumer loans:
Home equity and second mortgage	381		381		—		496		400		3		6		3		5
Other	1		1		—		2		3		—		—		—		—
Commercial business loans	48		97		—		52		57		—		—		—		—
Subtotal	4,273		4,365		—		4,263		4,268		52		103		42		84

With an allowance recorded:












Commercial business loans	245		245		123		247		249		—		—		—		—
Subtotal	245		245		123		247		249		—		—		—		—

Total:
Mortgage loans:
One- to four-family	378		421		—		381		386		7		14		7		14

Commercial	3,006		3,006		—		2,890		2,984		40		81		30		63




Land	459		459		—		442		438		2		2		2		2
Consumer loans:
Home equity and second mortgage	381		381		—		496		400		3		6		3		5
Other	1		1		—		2		3		—		—		—		—
Commercial business loans	293		342		123		299		306		—		—		—		—
Total	$	4,518	$	4,610	$	123	$	4,510	$	4,517	$	52	$	103	$	42	$	84


	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		YTD Average Recorded Investment (1)		YTD Interest Income Recognized (1)		YTD Cash Basis Interest Income Recognized (1)
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	388	$	432	$	—	$	470	$	31	$	31

Commercial	2,988		2,988		—		3,041		152		123




Land	450		450		—		492		—		—
Consumer loans:
Home equity and second mortgage	394		394		—		436		6		5
Other	3		3		—		7		—		—
Commercial business loans	59		108		—		121		—		—
Subtotal	4,282		4,375		—		4,567		189		159

With an allowance recorded:









Consumer loans:
Home equity and second mortgage	—		—		—		145		—		—

Commercial business loans	250		250		127		268		—		—
Subtotal	250		250		127		413		—		—
Total
Mortgage loans:
One- to four-family	388		432		—		470		31		31

Commercial	2,988		2,988		—		3,041		152		123




Land	450		450		—		492		—		—
Consumer loans:
Home equity and second mortgage	394		394		—		581		6		5
Other	3		3		—		7		—		—
Commercial business loans	309		358		127		389		—		—
Total	$	4,532	$	4,625	$	127	$	4,980	$	189	$	159

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. The Company had $2.60 million and $2.62 million in TDRs included in impaired loans at March 31, 2023 and September 30, 2022, respectively, and had no commitments at these dates to lend additional funds on these loans. There was no allowance for loan losses allocated to TDRs at March 31, 2023 and September 30, 2022. There were no TDRs for which there was a payment default within the first 12 months of the modification during the six months ended March 31, 2023.