XML 33 R24.htm IDEA: XBRL DOCUMENT v3.23.2
Loans Receivable And Allowance For Loan Losses (Tables)
 9 Months Ended
Jun. 30, 2023
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 June 30, 2023 and September 30, 2022 (dollars in thousands):
 June 30,
2023		September 30,
2022
 AmountPercentAmountPercent
Mortgage loans:    
One- to four-family (1)$229,274 16.5 %$176,116 14.1 %
Multi-family111,777 8.1 95,025 7.6 
Commercial557,015 40.2 536,650 42.8 
Construction - custom and owner/builder136,595 9.8 119,240 9.5 
Construction - speculative one- to four-family12,522 0.9 12,254 1.0 
Construction - commercial42,657 3.1 40,364 3.2 
Construction - multi-family73,859 5.3 64,480 5.1 
Construction - land development15,968 1.2 19,280 1.5 
Land25,908 1.9 26,854 2.1 
Total mortgage loans1,205,575 87.0 1,090,263 86.9 
Consumer loans:    
Home equity and second mortgage40,008 2.9 35,187 2.8 
Other2,469 0.2 2,128 0.2 
Total consumer loans42,477 3.1 37,315 3.0 
Commercial loans:
Commercial business137,114 9.9 125,039 10.0 
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans519 — 1,001 0.1 
    Total commercial loans137,633 9.9 126,040 10.1 
Total loans receivable1,385,685 100.0 %1,253,618 100.0 %
Less:    
Undisbursed portion of construction loans in process104,774  103,168  
Deferred loan origination fees, net4,957  4,321  
Allowance for loan losses15,307  13,703  
Subtotal125,038 121,192 
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.
Schedule of Allowance for Loan Losses
The following tables set forth information for the three and nine months ended June 30, 2023 and 2022 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):

 Three Months Ended June 30, 2023
 Beginning
Allowance		Provision for
(Recapture of) Loan Losses		Charge-
offs		RecoveriesEnding
Allowance
Mortgage loans:     
One- to four-family$2,052 $126 $— $— $2,178 
Multi-family938 74 — — 1,012 
Commercial6,904 125 — — 7,029 
Construction – custom and owner/builder726 73 — — 799 
Construction – speculative one- to four-family121 (11)— — 110 
Construction – commercial267 24 — — 291 
Construction – multi-family662 30 — — 692 
Construction – land development245 (12)— — 233 
Land363 26 — — 389 
Consumer loans:    
Home equity and second mortgage507 35 — — 542 
Other47 5 (1)— 51 
Commercial business loans1,866 115 — — 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		RecoveriesEnding
Allowance
Mortgage loans:     
One-to four-family$1,658 $520 $— $— $2,178 
Multi-family855 157 — — 1,012 
Commercial6,682 347 — — 7,029 
Construction – custom and owner/builder675 124 — — 799 
Construction – speculative one- to four-family130 (20)— — 110 
Construction – commercial343 (52)— — 291 
Construction – multi-family447 245 — — 692 
Construction – land development233 — — — 233 
Land397 (8)— — 389 
Consumer loans:     
Home equity and second mortgage440 102 — — 542 
Other42 11 (2)— 51 
Commercial business loans1,801 184 (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		RecoveriesEnding
Allowance
Mortgage loans:     
  One- to four-family$1,247 $109 $— $— $1,356 
  Multi-family735 153 — — 888
  Commercial6,931 (168)— — 6,763
  Construction – custom and owner/builder686 47 — — 733
  Construction – speculative one- to four-family126 (33)— — 93
  Construction – commercial463 (109)— — 354
Construction – multi-family436 (108)— — 328 
  Construction – land development126 113 — — 239 
  Land377 (17)— — 360
Consumer loans:     
  Home equity and second mortgage469 (35)— — 434
  Other44 15 (8)— 51
Commercial business loans1,793 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		RecoveriesEnding
Allowance
Mortgage loans:     
  One-to four-family$1,154 $202 $— $— $1,356 
  Multi-family765123 — — 888
  Commercial6,813(50)— — 6,763
  Construction – custom and owner/builder64489 — — 733
  Construction – speculative one- to four-family188(95)— — 93
  Construction – commercial784(430)— — 354
Construction – multi-family436 (108)— — 328 
  Construction – land development124 115 — — 239 
  Land470(110)— — 360
Consumer loans:     
  Home equity and second mortgage528(94)— — 434
  Other5010 (10)1 51
Commercial business loans1,513348 (49)22 1,834
Total$13,469 $— $(59)$23 $13,433 
Schedule of loans evaluated individually for impairment and collectively evaluated for impairment in the allowance for loan losses
The following tables present information on the loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at June 30, 2023 and September 30, 2022 (dollars in thousands):
 Allowance for Loan LossesRecorded Investment in Loans
 Individually
Evaluated for
Impairment		Collectively
Evaluated for
Impairment		TotalIndividually
Evaluated for
Impairment		Collectively
Evaluated for
Impairment		Total
June 30, 2023      
Mortgage loans:      
One- to four-family$— $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 loans123 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 loans127 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 $1,150,450 
Past Due Status of Loans Receivable
The following tables present an analysis of loans by aging category and portfolio segment at June 30, 2023 and September 30, 2022 (dollars in thousands):
 30–59
Days
Past Due		60-89
Days
Past Due		Non-
Accrual (1)		Past Due
90 Days
or More
and Still
Accruing		Total
Past Due		CurrentTotal
Loans
June 30, 2023       
Mortgage loans:       
One- to four-family$— $— $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 mortgage49 — 184 — 233 39,775 40,008 
Other— — — — — 2,469 2,469 
Commercial business loans22 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 mortgage37 — 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 
______________________
(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 tables present an analysis of loans by credit quality indicator and portfolio segment at June 30, 2023 and September 30, 2022 (dollars in thousands):
Loan Grades 
June 30, 2023PassWatchSpecial
Mention		SubstandardTotal
Mortgage loans:     
One- to four-family$228,870 $30 $— $374 $229,274 
Multi-family111,777 — — — 111,777 
Commercial543,495 8,039 — 5,481 557,015 
Construction – custom and owner/builder75,340 3,399 — — 78,739 
Construction – speculative one- to four-family7,037 — — — 7,037 
Construction – commercial23,333 967 — — 24,300 
Construction – multi-family52,941 — — — 52,941 
Construction – land development13,810 — — — 13,810 
Land25,253 505 — 150 25,908 
Consumer loans:    
Home equity and second mortgage39,700 34 — 274 40,008 
Other2,442 27 — — 2,469 
Commercial business loans136,810 — — 304 137,114 
SBA PPP loans488 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-family95,025 — — — 95,025 
Commercial522,741 7,940 237 5,732 536,650 
Construction – custom and owner/builder65,249 1,842 — — 67,091 
Construction – speculative one- to four-family8,364 — — — 8,364 
Construction – commercial29,059 — — — 29,059 
Construction – multi-family34,354 — — — 34,354 
Construction – land development13,557 — — 25 13,582 
Land25,882 522 — 450 26,854 
Consumer loans:    
Home equity and second mortgage34,709 19 — 459 35,187 
Other2,063 62 — 3 2,128 
Commercial business loans124,712 — — 327 125,039 
SBA PPP loans1,001 — — — 1,001 
Total$1,132,403 $10,423 $237 $7,387 $1,150,450 
Impaired Loans Receivable
The following table is a summary of information related to impaired loans by portfolio segment as of June 30, 2023 and for the three and nine months then ended (dollars in thousands):
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 
Commercial2,988 2,988 — 2,894 2,939 40 121 31 94 
Land150 150 — 305 371 2 4 1 3 
Consumer loans: 
Home equity and second mortgage390 390 — 488 444 3 9 2 7 
Other— 48 — 1 2 — — — — 
Commercial business loans44 44 — 46 51 — — — — 
Subtotal3,945 4,037 — 4,110 4,188 52 155 41 125 
With an allowance recorded:   
Commercial business loans245 245 123 247 247 — — — — 
Subtotal245 245 123 247 247 — — — — 
Total:   
Mortgage loans:   
One- to four-family373 417 — 376 381 7 21 7 21 
Commercial2,988 2,988 — 2,894 2,939 40 121 31 94 
Land150 150 — 305 371 2 4 1 3 
Consumer loans:
Home equity and second mortgage390 390 — 488 444 3 9 2 7 
Other— 48 — 1 2 — — — — 
Commercial business loans289 289 123 293 298 — — — — 
Total$4,190 $4,282 $123 $4,357 $4,435 $52 $155 $41 $125 
______________________________________________
(1)For the three months ended June 30, 2023.
(2)For the nine months ended June 30, 2023.
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 
Commercial2,988 2,988 — 3,041 152 123 
Land
450 450 — 492 — — 
Consumer loans:      
Home equity and second mortgage394 394 — 436 6 5 
Other3 3 — 7 — — 
Commercial business loans59 108 — 121 — — 
Subtotal4,282 4,375 — 4,567 189 159 
With an allowance recorded:      
Consumer loans:      
Home equity and second mortgage— — — 145 — — 
Commercial business loans250 250 127 268 — — 
Subtotal250 250 127 413 — — 
Total      
Mortgage loans:      
One- to four-family388 432 — 470 31 31 
Commercial2,988 2,988 — 3,041 152 123 
Land450 450 — 492 — — 
Consumer loans:      
Home equity and second mortgage394 394 — 581 6 5 
Other3 3 — 7 — — 
Commercial business loans309 358 127 389 — — 
Total$4,532 $4,625 $127 $4,980 $189 $159 
_____________________________________________
(1) For the year ended September 30, 2022.
Schedule Of COVID Loan Modifications
Schedule of Troubled Debt Restructured Loans by Interest Accrual Status
The following tables set forth information with respect to the Company’s TDRs by interest accrual status as of June 30, 2023 and September 30, 2022 (dollars in thousands):
 June 30, 2023
 AccruingNon-
Accrual		Total
Mortgage loans:   
Commercial$2,302 $— $2,302 
Land96 — 96 
Consumer loans:   
   Home equity and second mortgage206 — 206 
Total$2,604 $— $2,604 

 September 30, 2022
 AccruingNon-
Accrual		Total
Mortgage loans:   
Commercial$2,330 $— $2,330 
Land— 88 88 
Consumer loans:   
   Home equity and second mortgage142 55 197 
Total$2,472 $143 $2,615