
	2025		2024
Mortgage loans:
One- to four-family	$	317,691	$	299,123
Multi-family	207,767		177,350
Commercial	610,692		599,219
Construction – custom and owner/builder	130,341		132,101
Construction – speculative one- to four-family	10,745		11,495
Construction – commercial	21,818		29,463
Construction – multi-family	45,660		28,401
Construction – land development	15,324		17,741
Land	35,952		29,366
Total mortgage loans	1,395,990		1,324,259
Consumer loans:
Home equity and second mortgage	50,479		47,913
Other	2,034		3,129
Total consumer loans	52,513		51,042

Commercial loans:
Commercial business	126,937		138,743
SBA Paycheck Protection Program ("PPP")	58		260
Total commercial loans	126,995		139,003
Total loans receivable	1,575,498		1,514,304
Less:
Undisbursed portion of construction loans in process ("LIP")	88,289		69,878
Deferred loan origination fees, net	5,528		5,425
Allowance for credit losses	18,091		17,478
	111,908		92,781
Loans receivable, net	$	1,463,590	$	1,421,523

Most of the Company’s lending activity is with customers located in the state of Washington and involves real estate. At September 30, 2025, the Company had $1,446,469,000 (including $88,289,000 of undisbursed construction loans in process) in loans secured by real estate, which represented 91.81% of total loans receivable. The real estate loan portfolio is primarily secured by one- to four-family properties, multi-family properties, land, and a variety of commercial real estate property types. At September 30, 2025, there were no concentrations of real estate loans to a specific industry or secured by a specific collateral type that equaled or exceeded 20% of the Company’s total loan portfolio, other than loans secured by one-to four-family properties. The ultimate collectability of a substantial portion of the loan portfolio is susceptible to changes in economic and market conditions in the region and the impact of those changes on the real estate market. The Company typically originates real estate loans with loan-to-value ratios of no greater than 85%. Collateral and/or guarantees are required for all loans.

One- To Four-Family Residential Lending: The Company originates both fixed-rate and adjustable-rate loans secured by one- to four-family residences. A portion of the fixed-rate one- to four-family loans are sold in the secondary market for asset/liability management purposes and to generate non-interest income. The Company’s lending policies generally limit the maximum loan-to-value on one- to four-family loans to 85% of the lesser of the appraised value or the purchase price. However, the Company usually obtains private mortgage insurance on the portion of the principal amount that exceeds 80% of the appraised value of the property.

Multi-Family Lending: The Company originates loans secured by multi-family dwelling units (more than four units). Multi-family lending generally affords the Company an opportunity to receive interest at rates higher than those generally available from one- to four-family residential lending. However, loans secured by multi-family properties usually are greater in amount, more difficult to evaluate and monitor and, therefore, involve a greater degree of risk than one- to four-family residential mortgage loans. Because payments on loans secured by multi-family properties are often dependent on the successful operation and management of the properties, repayment of such loans may be affected by adverse conditions in the real estate market or economy. The Company attempts to minimize these risks by scrutinizing the financial condition of the borrower, the quality of the collateral and the management of the property securing the loan.

Commercial Mortgage Lending: The Company originates commercial real estate loans secured by properties such as office buildings, retail/wholesale facilities, motels, restaurants, mini-storage facilities and other commercial properties. Commercial real estate lending generally affords the Company an opportunity to receive interest at higher rates than those available from one- to four-family residential lending. However, loans secured by such properties usually are greater in amount, more difficult to evaluate and monitor and, therefore, involve a greater degree of risk than one- to four-family residential mortgage loans. Because payments on loans secured by commercial properties are often dependent on the successful operation and management of the properties, repayment of these loans may be affected by adverse conditions in the real estate market or economy. The Company attempts to mitigate these risks by generally limiting the maximum loan-to-value ratio to 80% and scrutinizing the financial condition of the borrower, the quality of the collateral and the management of the property securing the loan.

Construction lending affords the Company the opportunity to achieve higher interest rates and fees with shorter terms to maturity than does its single-family permanent mortgage lending. Construction lending, however, is generally considered to involve a higher degree of risk than one- to four family residential lending because of the inherent difficulty in estimating both a property’s value at completion of the project and the estimated cost of the project. The nature of these loans is such that they are generally more difficult to evaluate and monitor. If the estimated cost of construction proves to be inaccurate, the Company may be required to advance funds beyond the amount originally committed to complete the project. If the estimate of value upon completion proves to be inaccurate, the Company may be confronted with a project whose value is insufficient to assure

full repayment, and the Company may incur a loss. Projects may also be jeopardized by disagreements between borrowers and builders and by the failure of builders to pay subcontractors. Loans to construct homes for which no purchaser has been identified carry more risk, because the payoff for the loan depends on the builder’s ability to sell the property prior to the time that the construction loan is due. The Company attempts to mitigate these risks by adhering to its underwriting policies, disbursement procedures and monitoring practices.

Construction Lending – Speculative One- To Four-Family: Speculative one-to four-family construction loans are made to home builders and are termed “speculative,” because the home builder does not have, at the time of the loan origination, a signed contract with a home buyer who has a commitment for permanent financing with the Company or another lender for the finished home. The home buyer may be identified either during or after the construction period.

Land Lending: The Company originates loans for the acquisition of land upon which the purchaser can then build or make improvements necessary to build or to sell as improved lots. Loans secured by undeveloped land or improved lots involve greater risks than one- to four-family residential mortgage loans because these loans are more difficult to evaluate. If the estimate of value proves to be inaccurate, in the event of default or foreclosure, the Company may be confronted with a property value which is insufficient to assure full repayment. The Company attempts to minimize this risk by generally limiting the maximum loan-to-value ratio on land loans to 65%.

Consumer Lending – Home Equity and Second Mortgage: The Company originates home equity lines of credit and second mortgage loans. Home equity lines of credit and second mortgage loans have a greater credit risk than one- to four-family residential mortgage loans because they are secured by mortgages subordinated to the existing first mortgage on the property, which may or may not be held by the Company. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the collateral and the credit-worthiness of the borrower.

Consumer Lending – Other: The Company originates other consumer loans, which include automobile loans, boat loans, motorcycle loans, recreational vehicle loans, savings account loans and unsecured loans. Other consumer loans generally have shorter terms to maturity than mortgage loans. Other consumer loans generally involve a greater degree of risk than do residential mortgage loans, particularly in the case of consumer loans that are unsecured or secured by rapidly depreciating assets such as automobiles. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the credit-worthiness of the borrower.

Commercial Business Lending: The Company originates commercial business loans which are generally secured by business equipment, accounts receivable, inventory and/or other property. The Company also generally obtains personal guarantees from the business owners based on a review of personal financial statements. Commercial business lending generally involves risks that are different from those associated with residential and commercial real estate lending. Real estate lending is generally considered to be collateral based lending with loan amounts based on predetermined loan to collateral values, and liquidation of the underlying real estate collateral is viewed as the primary source of repayment in the event of borrower default. Although commercial business loans are often collateralized by equipment, inventory, accounts receivable and/or other business assets, the liquidation of collateral in the event of a borrower default is often an insufficient source of repayment, because accounts receivable may be uncollectible and inventories and equipment may be obsolete or of limited use. Accordingly, the repayment of a commercial business loan depends primarily on the credit-worthiness of the borrower (and any guarantors), while the liquidation of collateral is a secondary and potentially insufficient source of repayment. The Company attempts to mitigate

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 an asset is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this loan even though partial recovery may be realized in the future. At September 30, 2025 and 2024, there were no loans classified as loss.



	Term Loans Amortized Cost Basis by Origination Fiscal Year
Type	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total Loans Receivable
One-to four-family
Risk Rating
Pass	$	10,885	$	25,692	$	79,193	$	102,942	$	45,274	$	47,078	$	—	$	311,064

Special Mention	—		—		—		4,846		—		—		—		4,846
Substandard	—		—		1,781		—		—		—		—		1,781
Total one- to four-family	$	10,885	$	25,692	$	80,974	$	107,788	$	45,274	$	47,078	$	—	$	317,691


Multi-family
Risk Rating
Pass	$	16,305	$	13,129	$	40,004	$	39,064	$	22,489	$	62,516	$	1,334	$	194,841
Watch	—		—		—		—		—		3,264		—		3,264

Substandard	—		—		—		—		9,662		—		—		9,662
Total multi-family	$	16,305	$	13,129	$	40,004	$	39,064	$	32,151	$	65,780	$	1,334	$	207,767


Commercial real estate
Risk Rating
Pass	$	47,145	$	25,419	$	79,692	$	123,631	$	82,507	$	225,019	$	10,212	$	593,625
Watch	—		—		—		238		—		9,307		—		9,545
Special Mention	—		—		—		—		—		32		—		32
Substandard	—		—		—		—		—		7,490		—		7,490
Total commercial real estate	$	47,145	$	25,419	$	79,692	$	123,869	$	82,507	$	241,848	$	10,212	$	610,692


Construction-custom & owner/builder
Risk Rating
Pass	$	32,733	$	33,785	$	560	$	—	$	758	$	—	$	—	$	67,836
Watch	—		3,875		5,367		1,855		1,232		—		—		12,329

Substandard	—		—		—		553		—		—		—		553
Total construction-customer & owner/builder	$	32,733	$	37,660	$	5,927	$	2,408	$	1,990	$	—	$	—	$	80,718


Construction-speculative one-to four-family
Risk Rating
Pass	$	6,375	$	16	$	44	$	—	$	—	$	—	$	—	$	6,435
Watch	—		—		488		—		—		—		—		488
Total construction-speculative one-to four-family	$	6,375	$	16	$	532	$	—	$	—	$	—	$	—	$	6,923

Construction-commercial
Risk Rating
Pass	$	10,284	$	2,725	$	2,725	$	—	$	—	$	—	$	—	$	15,734



Total construction-commercial	$	10,284	$	2,725	$	2,725	$	—	$	—	$	—	$	—	$	15,734



	Term Loans Amortized Cost Basis by Origination Fiscal Year
Type	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total Loans Receivable

Construction-multi-family
Risk Rating
Pass	$	11,084	$	7,604	$	—	$	—	$	—	$	—	$	—	$	18,688



Total construction-multi-family	$	11,084	$	7,604	$	—	$	—	$	—	$	—	$	—	$	18,688


Construction-land development
Risk Rating
Pass	$	—	$	358	$	1,629	$	—	$	—	$	—	$	—	$	1,987


Substandard	—		—		—		11,549		—		—		—		11,549
Total construction-land development	$	—	$	358	$	1,629	$	11,549	$	—	$	—	$	—	$	13,536


Land
Risk Rating
Pass	$	11,667	$	9,393	$	3,741	$	5,805	$	1,951	$	2,339	$	303	$	35,199
Watch	—		—		—		298		—		455		—		753


Total land	$	11,667	$	9,393	$	3,741	$	6,103	$	1,951	$	2,794	$	303	$	35,952


Home equity and second mortgage
Risk Rating
Pass	$	2,528	$	5,154	$	3,574	$	1,556	$	237	$	2,112	$	34,649	$	49,810
Watch	—		—		—		—		—		10		—		10

Substandard	—		—		—		—		—		57		602		659
Total home equity and second mortgage	$	2,528	$	5,154	$	3,574	$	1,556	$	237	$	2,179	$	35,251	$	50,479


Other consumer
Risk Rating
Pass	$	565	$	459	$	390	$	82	$	48	$	423	$	38	$	2,005
Watch	—		—		—		—		—		7		—		7

Substandard	—		—		—		—		—		—		22		22
Total other consumer	$	565	$	459	$	390	$	82	$	48	$	430	$	60	$	2,034
Current period gross write-offs	$	4	$	1	$	—	$	—	$	—	$	—	$	1	$	6

Commercial business
Risk Rating
Pass	$	10,686	$	12,875	$	17,674	$	27,359	$	5,793	$	9,870	$	40,048	$	124,305
Watch	—		—		—		—		649		—		—		649
Special Mention	—		—		—		187		304		201		—		692
Substandard	—		—		159		140		—		790		—		1,089
Doubtful	—		—		202		—		—		—		—		202
Total commercial business	$	10,686	$	12,875	$	18,035	$	27,686	$	6,746	$	10,861	$	40,048	$	126,937
Current period gross write-offs	$	—	$	—	$	—	$	241	$	—	$	—	$	—	$	241




	Term Loans Amortized Cost Basis by Origination Fiscal Year
Type	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total Loans Receivable
SBA PPP
Risk Rating
Pass	$	—	$	—	$	—	$	—	$	58	$	—	$	—	$	58



Total SBA PPP	$	—	$	—	$	—	$	—	$	58	$	—	$	—	$	58


Total loans receivable, gross (net of construction LIP)
Risk Rating
Pass	$	160,257	$	136,609	$	229,226	$	300,439	$	159,115	$	349,357	$	86,584	$	1,421,587
Watch	—		3,875		5,855		2,391		1,881		13,043		—		27,045
Special Mention	—		—		—		5,033		304		233		—		5,570
Substandard	—		—		1,940		12,242		9,662		8,337		624		32,805
Doubtful	—		—		202		—		—		—		—		202
Total loans receivable	$	160,257	$	140,484	$	237,223	$	320,105	$	170,962	$	370,970	$	87,208	$	1,487,209
Current period gross charge-off	$	4	$	1	$	—	$	241	$	—	$	—	$	1	$	247



	Term Loans Amortized Cost Basis by Origination Fiscal Year
Type	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total Loans Receivable
One-to four-family
Risk Rating
Pass	$	12,941	$	66,671	$	113,834	$	48,120	$	19,053	$	36,659	$	—	$	297,278
Watch	—		1,796		—		—		—		—		—		1,796

Substandard	—		—		—		—		—		49		—		49
Total one- to four-family	$	12,941	$	68,467	$	113,834	$	48,120	$	19,053	$	36,708	$	—	$	299,123


Multi-family
Risk Rating
Pass	$	13,136	$	19,440	$	39,673	$	33,144	$	27,029	$	43,759	$	1,169	$	177,350



Total multi-family	$	13,136	$	19,440	$	39,673	$	33,144	$	27,029	$	43,759	$	1,169	$	177,350


Commercial real estate
Risk Rating
Pass	$	23,758	$	73,005	$	126,939	$	91,035	$	55,498	$	194,273	$	8,799	$	573,307
Watch	—		944		—		—		4,201		10,548		—		15,693
Special Mention	—		—		—		—		—		4,401		—		4,401
Substandard	—		—		—		—		—		5,818		—		5,818
Total commercial real estate	$	23,758	$	73,949	$	126,939	$	91,035	$	59,699	$	215,040	$	8,799	$	599,219


	Term Loans Amortized Cost Basis by Origination Fiscal Year
Type	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total Loans Receivable
Construction-custom & owner/builder
Risk Rating
Pass	$	38,303	$	29,159	$	778	$	—	$	—	$	—	$	—	$	68,240
Watch	221		3,239		5,848		2,861		429		436		—		13,034


Total construction-customer & owner/builder	$	38,524	$	32,398	$	6,626	$	2,861	$	429	$	436	$	—	$	81,274


Construction-speculative one-to four-family
Risk Rating
Pass	$	5,039	$	2,412	$	—	$	—	$	—	$	—	$	—	$	7,451

Total construction-speculative one-to four-family	$	5,039	$	2,412	$	—	$	—	$	—	$	—	$	—	$	7,451

Construction-commercial
Risk Rating
Pass	$	6,006	$	16,349	$	1,457	$	—	$	—	$	—	$	—	$	23,812



Total construction-commercial	$	6,006	$	16,349	$	1,457	$	—	$	—	$	—	$	—	$	23,812


Construction-multi-family
Risk Rating
Pass	$	588	$	20,169	$	—	$	—	$	—	$	—	$	—	$	20,757



Total construction-multi-family	$	588	$	20,169	$	—	$	—	$	—	$	—	$	—	$	20,757


Construction-land development
Risk Rating
Pass	$	1,673	$	2,807	$	—	$	—	$	—	$	—	$	—	$	4,480
Watch	—		—		11,549		—		—		—		—		11,549


Total construction-land development	$	1,673	$	2,807	$	11,549	$	—	$	—	$	—	$	—	$	16,029


Land
Risk Rating
Pass	$	10,287	$	4,828	$	6,588	$	4,004	$	766	$	1,954	$	458	$	28,885
Watch	—		—		—		—		—		481		—		481


Total land	$	10,287	$	4,828	$	6,588	$	4,004	$	766	$	2,435	$	458	$	29,366


Home equity and second mortgage
Risk Rating
Pass	$	5,820	$	4,716	$	1,990	$	252	$	573	$	2,097	$	31,766	$	47,214


Substandard	—		—		—		—		—		81		618		699
Total home equity and second mortgage	$	5,820	$	4,716	$	1,990	$	252	$	573	$	2,178	$	32,384	$	47,913



	Term Loans Amortized Cost Basis by Origination Fiscal Year
Type	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total Loans Receivable
Other consumer
Risk Rating
Pass	$	1,744	$	441	$	241	$	57	$	8	$	501	$	71	$	3,063
Watch	—		—		—		—		—		65		1		66


Total other consumer	$	1,744	$	441	$	241	$	57	$	8	$	566	$	72	$	3,129
Current period gross write-offs	$	6	$	1	$	—	$	—	$	—	$	—	$	2	$	9

Commercial business
Risk Rating
Pass	$	16,129	$	19,910	$	35,117	$	8,588	$	7,589	$	4,775	$	43,444	$	135,552
Watch	—		—		202		36		696		6		180		1,120

Substandard	—		1,352		—		—		—		517		—		1,869
Doubtful	—		202		—		—		—		—		—		202
Total commercial business	$	16,129	$	21,464	$	35,319	$	8,624	$	8,285	$	5,298	$	43,624	$	138,743
Current period gross write-offs	$	—	$	79	$	—	$	—	$	—	$	13	$	—	$	92

SBA PPP
Risk Rating
Pass	$	—	$	—	$	—	$	224	$	36	$	—	$	—	$	260



Total SBA PPP	$	—	$	—	$	—	$	224	$	36	$	—	$	—	$	260


Total loans receivable, gross (net of construction LIP)
Risk Rating
Pass	$	135,424	$	259,907	$	326,617	$	185,424	$	110,552	$	284,018	$	85,707	$	1,387,649
Watch	221		5,979		17,599		2,897		5,326		11,536		181		43,739
Special Mention	—		—		—		—		—		4,401		—		4,401
Substandard	—		1,352		—		—		—		6,465		618		8,435
Doubtful	—		202		—		—		—		—		—		202
Total loans receivable	$	135,645	$	267,440	$	344,216	$	188,321	$	115,878	$	306,420	$	86,506	$	1,444,426
Current period gross charge-off	$	6	$	80	$	—	$	—	$	—	$	13	$	2	$	101

During the year ended September 30, 2025, the ACL on loans increased $613,000 due primarily to a provision for credit losses on loans of $853,000, partially offset by net charge-offs of $240,000. The provision for credit losses on loans recognized during the year ended September 30, 2025 was primarily due to growth in balances of collectively evaluated loans. During the year ended September 30, 2024, the ACL on loans increased $1,661,000 primarily due to a provision for credit losses on loans of $1,254,000 and a $461,000 upward adjustment related to the adoption of ASU 2016-13. The provision for credit losses on loans recognized during the year ended September 30, 2024 was primarily due to growth in the balances of collectively evaluated loans.


	Beginning Allowance		Provision for (Recapture of) Credit Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	2,632	$	260	$	—	$	—	$	2,892
Multi-family	1,308		317		—		—		1,625
Commercial	6,934		213		—		—		7,147
Construction – custom and owner/builder	1,328		(60)		—		—		1,268
Construction – speculative one- to four-family	128		(16)		—		—		112
Construction – commercial	537		(189)		—		—		348
Construction – multi-family	456		(56)		—		—		400
Construction – land development	335		77		—		—		412
Land	793		4		—		—		797
Consumer loans:
Home equity and second mortgage	348		87		—		—		435
Other	39		24		(6)		1		58
Commercial business loans	2,640		192		(241)		6		2,597
Total	$	17,478	$	853	$	(247)	$	7	$	18,091


	Beginning Allowance		Impact of Adopting CECL (ASU 2016-13)		Provision for (Recapture of) Credit Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	2,417	$	(408)	$	580	$	—	$	43	$	2,632
Multi-family	1,156		(120)		272		—		—		1,308
Commercial	7,209		(494)		219		—		—		6,934
Construction – custom and owner/ builder	750		542		36		—		—		1,328
Construction – speculative one- to four-family	148		(16)		(4)		—		—		128
Construction – commercial	316		176		45		—		—		537
Construction – multi-family	602		204		(350)		—		—		456
Construction – land development	274		25		36		—		—		335
Land	406		318		69		—		—		793
Consumer loans:
Home equity and second mortgage	519		(243)		72		—		—		348
Other	53		(7)		2		(9)		—		39
Commercial business loans	1,967		484		277		(92)		4		2,640
Total	$	15,817	$	461	$	1,254	$	(101)	$	47	$	17,478


	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,658	$	759	$	—	$	—	$	2,417
Multi-family	855		301		—		—		1,156
Commercial	6,682		527		—		—		7,209
Construction – custom and owner/builder	675		75		—		—		750
Construction – speculative one- to four-family	130		18		—		—		148
Construction – commercial	343		(27)		—		—		316
Construction – multi-family	447		155		—		—		602
Construction – land development	233		41		—		—		274
Land	397		9		—		—		406
Consumer loans:
Home equity and second mortgage	440		79		—		—		519
Other	42		14		(4)		1		53
Commercial business loans	1,801		181		(15)		—		1,967
Total	$	13,703	$	2,132	$	(19)	$	1	$	15,817

When a loan is 90 days delinquent the accrual of interest is generally discontinued and the loan is placed on non-accrual. All interest accrued but not collected for loans placed on non-accrual is reversed out of interest income. Generally, payments received on non-accrual loans are applied to reduce the outstanding principal balance of the loan. At times interest may be accounted for on a cash basis, depending on the collateral value and the borrower's payment history. A loan is generally not returned to accrual status until all delinquent principal, interest and late fees have been brought current and the borrower demonstrates repayment ability over a period of not less than six months and all taxes are current.


	30-59 Days Past Due		60-89 Days Past Due		Non- Accrual(1)		Past Due 90 Days or More and Still Accruing		Total Past Due		Current		Total Loans
Mortgage loans:
One- to four-family	$	—	$	210	$	1,781	$	—	$	1,991	$	315,700	$	317,691
Multi-family	—		—		—		—		—		207,767		207,767
Commercial	—		255		159		—		414		610,278		610,692
Construction – custom and owner/ builder	—		—		553		—		553		80,165		80,718
Construction – speculative one- to four-family	—		—		—		—		—		6,923		6,923
Construction – commercial	—		—		—		—		—		15,734		15,734
Construction – multi-family	—		—		—		—		—		18,688		18,688
Construction – land development	—		—		—		—		—		13,536		13,536
Land	—		—		—		—		—		35,952		35,952
Consumer loans:
Home equity and second mortgage	—		411		602		—		1,013		49,466		50,479
Other	—		—		22		—		22		2,012		2,034
Commercial business loans	374		—		1,290		—		1,664		125,273		126,937
SBA PPP loans	—		—		—		—		—		58		58
Total	$	374	$	876	$	4,407	$	—	$	5,657	$	1,481,552	$	1,487,209


	30-59 Days Past Due		60-89 Days Past Due		Non- Accrual(1)		Past Due 90 Days or More and Still Accruing		Total Past Due		Current		Total Loans
Mortgage loans:
One- to four-family	$	—	$	—	$	49	$	—	$	49	$	299,074	$	299,123
Multi-family	—		—		—		—		—		177,350		177,350
Commercial	—		—		1,158		—		1,158		598,061		599,219
Construction – custom and owner/ builder	—		—		—		—		—		81,274		81,274
Construction – speculative one- to four-family	—		—		—		—		—		7,451		7,451
Construction – commercial	—		—		—		—		—		23,812		23,812
Construction – multi-family	—		—		—		—		—		20,757		20,757
Construction – land development	—		—		—		—		—		16,029		16,029
Land	—		—		—		—		—		29,366		29,366
Consumer loans:
Home equity and second mortgage	—		—		618		—		618		47,295		47,913
Other	—		1		—		—		1		3,128		3,129
Commercial business loans	424		169		2,060		—		2,653		136,090		138,743
SBA PPP loans	—		—		—		—		—		260		260
Total	$	424	$	170	$	3,885	$	—	$	4,479	$	1,439,947	$	1,444,426

Prior to the adoption of CECL, a loan was considered impaired when it was probable that the Company would be unable to collect all amounts (principal and interest) when due according to the original contract 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 was identified as being impaired, the amount of the impairment was 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 was used. The valuation of real estate is subjective in nature and may be adjusted in future periods because of changes in economic conditions. Management considers third-party appraisals, as well as independent fair market value assessments from realtors or persons involved in selling real estate, in determining the estimated fair 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 that the recorded investment of 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 credit losses, and uncollected accrued interest is reversed against interest income. If ultimate collection of the loan 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.


	September 30, 2023						For the Year Ended September 30, 2023
	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Income Recognized
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	368	$	412	$	—	$	378	$	29	$	29

Commercial	2,973		2,973		—		2,987		167		129




Land	—		—		—		297		5		4
Consumer loans:
Home equity and second mortgage	382		382		—		390		12		10
Other	—		—		—		1		—		—
Commercial business loans	41		90		—		49		—		—
Subtotal	3,764		3,857		—		4,102		213		172
With an allowance recorded:












Commercial business loans	245		245		123		247		—		—
Subtotal	245		245		123		247		—		—
Total
Mortgage loans:
One- to four-family	368		412		—		378		29		29

Commercial	2,973		2,973		—		2,987		167		129




Land	—		—		—		297		5		4
Consumer loans:
Home equity and second mortgage	382		382		—		390		12		10
Other	—		—		—		1		—		—
Commercial business loans	286		335		123		296		—		—
Total	$	4,009	$	4,102	$	123	$	4,349	$	213	$	172

Occasionally, the Company offers modifications of loans to borrowers experiencing financial difficulty by providing principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions or any combination of these. When principal forgiveness is provided, the amount of the forgiveness is charged-off against the ACL for loans. Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged-off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL for loans is adjusted by the same amount. The ACL on modified loans is measured using the same credit loss estimation methods used to determine the ACL of all other loans held for investment. These methods incorporate the post-modification of loan terms, as well as defaults and charge-offs associated with historical modified loans.

In accordance with the Company's policy guidelines, unsecured loans are generally charged-off when no payments have been received for three consecutive months unless an alternative action plan is in effect. The outstanding balance of a secured loan that is in excess of the net realizable value is generally charged-off if no payments are received for four or five consecutive months. However, charge-offs are postponed if alternative proposals to restructure, obtain additional guarantors, obtain additional assets as collateral or a potential sale of the underlying collateral would result in full repayment of the outstanding loan balance. Once other potential sources of repayment are exhausted, the impaired portion of the loan is charged-off. Regardless of whether a loan is unsecured or collateralized, once an amount is determined to be a confirmed loss it is charged off.