
	June 30, 2023				September 30, 2022
	Amount		Percent		Amount		Percent
Mortgage loans:
One- to four-family (1)	$	229,274	16.5	%	$	176,116	14.1	%
Multi-family	111,777		8.1		95,025		7.6
Commercial	557,015		40.2		536,650		42.8
Construction - custom and owner/builder	136,595		9.8		119,240		9.5
Construction - speculative one- to four-family	12,522		0.9		12,254		1.0
Construction - commercial	42,657		3.1		40,364		3.2
Construction - multi-family	73,859		5.3		64,480		5.1
Construction - land development	15,968		1.2		19,280		1.5
Land	25,908		1.9		26,854		2.1
Total mortgage loans	1,205,575		87.0		1,090,263		86.9

Consumer loans:
Home equity and second mortgage	40,008		2.9		35,187		2.8
Other	2,469		0.2		2,128		0.2
Total consumer loans	42,477		3.1		37,315		3.0

Commercial loans:
Commercial business	137,114		9.9		125,039		10.0
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans	519		—		1,001		0.1
Total commercial loans	137,633		9.9		126,040		10.1

Total loans receivable	1,385,685		100.0	%	1,253,618		100.0	%
Less:
Undisbursed portion of construction loans in process	104,774				103,168
Deferred loan origination fees, net	4,957				4,321
Allowance for loan losses	15,307				13,703
Subtotal	125,038				121,192
Loans receivable, net	$	1,260,647			$	1,132,426
_____________________________
(1) Does not include one- to four-family loans held for sale totaling $0 and $748 at June 30, 2023 and September 30, 2022, respectively.


	Three Months Ended June 30, 2023
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	2,052	$	126	$	—	$	—	$	2,178
Multi-family	938		74		—		—		1,012
Commercial	6,904		125		—		—		7,029
Construction – custom and owner/builder	726		73		—		—		799
Construction – speculative one- to four-family	121		(11)		—		—		110
Construction – commercial	267		24		—		—		291
Construction – multi-family	662		30		—		—		692
Construction – land development	245		(12)		—		—		233
Land	363		26		—		—		389
Consumer loans:
Home equity and second mortgage	507		35		—		—		542
Other	47		5		(1)		—		51
Commercial business loans	1,866		115		—		—		1,981

Total	$	14,698	$	610	$	(1)	$	—	$	15,307


	Nine Months Ended June 30, 2023
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	1,658	$	520	$	—	$	—	$	2,178
Multi-family	855		157		—		—		1,012
Commercial	6,682		347		—		—		7,029
Construction – custom and owner/builder	675		124		—		—		799
Construction – speculative one- to four-family	130		(20)		—		—		110
Construction – commercial	343		(52)		—		—		291
Construction – multi-family	447		245		—		—		692
Construction – land development	233		—		—		—		233
Land	397		(8)		—		—		389
Consumer loans:
Home equity and second mortgage	440		102		—		—		542
Other	42		11		(2)		—		51
Commercial business loans	1,801		184		(5)		1		1,981

Total	$	13,703	$	1,610	$	(7)	$	1	$	15,307


	Three Months Ended June 30, 2022
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,247	$	109	$	—	$	—	$	1,356
Multi-family	735		153		—		—		888
Commercial	6,931		(168)		—		—		6,763
Construction – custom and owner/builder	686		47		—		—		733
Construction – speculative one- to four-family	126		(33)		—		—		93
Construction – commercial	463		(109)		—		—		354
Construction – multi-family	436		(108)		—		—		328
Construction – land development	126		113		—		—		239
Land	377		(17)		—		—		360
Consumer loans:
Home equity and second mortgage	469		(35)		—		—		434
Other	44		15		(8)		—		51
Commercial business loans	1,793		33		—		8		1,834

Total	$	13,433	$	—	$	(8)	$	8	$	13,433


	Nine Months Ended June 30, 2022
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	1,154	$	202	$	—	$	—	$	1,356
Multi-family	765		123		—		—		888
Commercial	6,813		(50)		—		—		6,763
Construction – custom and owner/builder	644		89		—		—		733
Construction – speculative one- to four-family	188		(95)		—		—		93
Construction – commercial	784		(430)		—		—		354
Construction – multi-family	436		(108)		—		—		328
Construction – land development	124		115		—		—		239
Land	470		(110)		—		—		360
Consumer loans:
Home equity and second mortgage	528		(94)		—		—		434
Other	50		10		(10)		1		51
Commercial business loans	1,513		348		(49)		22		1,834

Total	$	13,469	$	—	$	(59)	$	23	$	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
June 30, 2023
Mortgage loans:
One- to four-family	$	—	$	2,178	$	2,178	$	373	$	228,901	$	229,274
Multi-family	—		1,012		1,012		—		111,777		111,777
Commercial	—		7,029		7,029		2,988		554,027		557,015
Construction – custom and owner/builder	—		799		799		—		78,739		78,739
Construction – speculative one- to four-family	—		110		110		—		7,037		7,037
Construction – commercial	—		291		291		—		24,300		24,300
Construction – multi-family	—		692		692		—		52,941		52,941
Construction – land development	—		233		233		—		13,810		13,810
Land	—		389		389		150		25,758		25,908
Consumer loans:
Home equity and second mortgage	—		542		542		390		39,618		40,008
Other	—		51		51		—		2,469		2,469
Commercial business loans	123		1,858		1,981		289		136,825		137,114
SBA PPP loans	—		—		—		—		519		519
Total	$	123	$	15,184	$	15,307	$	4,190	$	1,276,721	$	1,280,911


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
June 30, 2023
Mortgage loans:
One- to four-family	$	—	$	—	$	373	$	—	$	373	$	228,901	$	229,274
Multi-family	—		—		—		—		—		111,777		111,777
Commercial	—		—		686		—		686		556,329		557,015
Construction – custom and owner/builder	—		—		—		—		—		78,739		78,739
Construction – speculative one- to four-family	—		—		—		—		—		7,037		7,037
Construction – commercial	—		—		—		—		—		24,300		24,300
Construction – multi-family	—		—		—		—		—		52,941		52,941
Construction – land development	—		—		—		—		—		13,810		13,810
Land	—		—		54		—		54		25,854		25,908
Consumer loans:
Home equity and second mortgage	49		—		184		—		233		39,775		40,008
Other	—		—		—		—		—		2,469		2,469
Commercial business loans	22		186		289		—		497		136,617		137,114
SBA PPP loans	—		—		—		—		—		519		519
Total	$	71	$	186	$	1,586	$	—	$	1,843	$	1,279,068	$	1,280,911


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 June 30, 2023 and September 30, 2022, there were no loans classified as loss.


	Loan Grades
June 30, 2023	Pass		Watch		Special Mention		Substandard		Total
Mortgage loans:
One- to four-family	$	228,870	$	30	$	—	$	374	$	229,274
Multi-family	111,777		—		—		—		111,777
Commercial	543,495		8,039		—		5,481		557,015
Construction – custom and owner/builder	75,340		3,399		—		—		78,739
Construction – speculative one- to four-family	7,037		—		—		—		7,037
Construction – commercial	23,333		967		—		—		24,300
Construction – multi-family	52,941		—		—		—		52,941
Construction – land development	13,810		—		—		—		13,810
Land	25,253		505		—		150		25,908
Consumer loans:
Home equity and second mortgage	39,700		34		—		274		40,008
Other	2,442		27		—		—		2,469
Commercial business loans	136,810		—		—		304		137,114
SBA PPP loans	488		31		—		—		519
Total	$	1,261,296	$	13,032	$	—	$	6,583	$	1,280,911

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	$	373	$	417	$	—	$	376	$	381	$	7	$	21	$	7	$	21

Commercial	2,988		2,988		—		2,894		2,939		40		121		31		94




Land	150		150		—		305		371		2		4		1		3
Consumer loans:
Home equity and second mortgage	390		390		—		488		444		3		9		2		7
Other	—		48		—		1		2		—		—		—		—
Commercial business loans	44		44		—		46		51		—		—		—		—
Subtotal	3,945		4,037		—		4,110		4,188		52		155		41		125

With an allowance recorded:












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

Total:
Mortgage loans:
One- to four-family	373		417		—		376		381		7		21		7		21

Commercial	2,988		2,988		—		2,894		2,939		40		121		31		94




Land	150		150		—		305		371		2		4		1		3
Consumer loans:
Home equity and second mortgage	390		390		—		488		444		3		9		2		7
Other	—		48		—		1		2		—		—		—		—
Commercial business loans	289		289		123		293		298		—		—		—		—
Total	$	4,190	$	4,282	$	123	$	4,357	$	4,435	$	52	$	155	$	41	$	125


	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 June 30, 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 June 30, 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 nine months ended June 30, 2023.