Loans (Tables)

12 Months Ended

Sep. 30, 2022

Loans

Major Classifications of Loans

	September 30,
(in thousands)	2022		2021
Real estate:
Residential real estate	$	515,316	$	444,011
Multi-family		574,413		266,294
Commercial real estate		472,511		348,641
Commercial and industrial		45,758		172,274
Construction and land development		12,871		15,374
Consumer		22		11
Gross loans		1,620,891		1,246,605
Net deferred loan fees and costs		2,640		520
Total loans		1,623,531		1,247,125
Allowance for loan losses		(12,844)		(8,552)
Total loans, net	$	1,610,687	$	1,238,573

Carrying Amount for Purchased Credit Impaired Loans

	September 30,
	2022		2021
(in thousands)
Commercial real estate	$	602	$	8,324
Commercial and industrial		629		1,917
Total recorded investment	$	1,231	$	10,241

Changes in Accretable Difference on Purchased Loans

	Year Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	346	$	—
Accretable differences acquired		—		540
Accretion		(1,822)		(194)
Adjustments to accretable difference due to changes in expected cash flows		1,019		—
Other changes, net		537		—
Ending balance	$	80	$	346

Loan Portfolio Based on Internal Rating Category

	September 30, 2022
			Special
(in thousands)	Pass		Mention		Substandard		Doubtful		Total
Real Estate:
Residential	$	512,595	$	512	$	3,151	$	—	$	516,258
Multi-family		571,128		—		3,933		—		575,061
Commercial		453,321		8,085		11,578		—		472,984
Commercial and industrial		43,314		540		2,431		—		46,285
Construction and land development		10,499		2,408		—		—		12,907
Consumer		36		—		—		—		36
Total	$	1,590,893	$	11,545	$	21,093	$	—	$	1,623,531

	September 30, 2021
			Special
(in thousands)	Pass		Mention		Substandard		Doubtful		Total
Real Estate:
Residential	$	433,433	$	5,114	$	5,590	$	3	$	444,140
Multi-family		263,400		2,856		458		—		266,714
Commercial		316,894		16,274		15,639		—		348,807
Commercial and industrial		167,906		540		3,631		—		172,077
Construction and land development		13,607		1,767		—		—		15,374
Consumer		13		—		—		—		13
Total	$	1,195,253	$	26,551	$	25,318	$	3	$	1,247,125

Aging of Recorded Investment in Past Due and Non-accrual Loans by Portfolio Segment

(in thousands)	Past Due and Non-Accrual
	30 - 59		60 - 89		Greater than					Total past		Purchased
	Days		Days		89 Days					due and		Credit				Total
September 30, 2022	Past Due		Past Due		Past Due		Non-accrual			Non-accrual		Impaired(5)		Current		Loans
Residential real estate	$	961	$	351	$	—	$	3,151	(1)	$	4,463	$	—	$	511,795	$	516,258
Multi-family		—		—		—		2,348	(2)		2,348		—		572,713		575,061
Commercial real estate		936		—		—		5,875	(3)		6,811		602		465,571		472,984
Commercial and industrial		539		161		—		907	(4)		1,607		629		44,049		46,285
Construction and land development		—		—		—		—			—		—		12,907		12,907
Consumer		—		—		—		—			—		—		36		36
Total	$	2,436	$	512	$	—	$	12,281		$	15,229	$	1,231	$	1,607,071	$	1,623,531

(1) Of the residential real estate non-accrual loans, $1,227 were not past due and $1,924 were greater than 89 days past due.

(2) Multi-family non-accrual loans at September 30, 2022 were greater than 89 days past due.

(3) Commercial real estate non-accrual loans at September 30, 2022 were greater than 89 days past due.

(4) Commercial and industrial non-accrual loans at September 30, 2022 were greater than 89 days past due.

(5) Purchased credit impaired loans at September 30, 2022 were greater than 89 days past due.

(in thousands)	Past Due and Non-Accrual
	30 - 59		60 - 89		Greater than					Total past		Purchased
	Days		Days		89 Days					due and		Credit				Total
September 30, 2021	Past Due		Past Due		Past Due		Non-accrual			Non-accrual		Impaired(4)		Current		Loans
Residential real estate	$	1,032	$	1,601	$	—	$	5,554	(1)	$	8,187	$	—	$	435,953	$	444,140
Multi-family		—		—		—		458	(2)		458		—		266,256		266,714
Commercial real estate		1,939		—		—		1,016	(3)		2,955		8,324		337,528		348,807
Commercial and industrial		3,641		—		—		—			3,641		1,917		166,519		172,077
Construction and land development		—		—		—		—			—		—		15,374		15,374
Consumer		—		—		—		—			—		—		13		13
Total	$	6,612	$	1,601	$	—	$	7,028		$	15,241	$	10,241	$	1,221,643	$	1,247,125

(1) Of the residential real estate non-accrual loans, $1,026 were 61 days past due and $4,528 were greater than 89 days past due.

(2) Multi-family non-accrual loans at September 30, 2021 were greater than 89 days past due.

(3) Commercial real estate non-accrual loans at September 30, 2021 were greater than 89 days past due.

(4) Of the total $10,241 purchased credit impaired loans, $2,519 were greater than 89 days past due.

Impaired Loans by Portfolio Segment

	September 30, 2022
	Unpaid						Interest		Average
	Principal		Recorded		Allowance		Income		Recorded
(in thousands)	Balance		Investment		Allocated		Recognized		Investment
With no related allowance recorded:
Residential real estate	$	5,394	$	5,392	$	—	$	124	$	4,646
Multi-family		2,348		2,348		—		—		1,066
Commercial real estate		5,950		5,875		—		—		3,627
Commercial and industrial		908		907		—		77		389
Total	$	14,600	$	14,522	$	—	$	201	$	9,728

	September 30, 2021
	Unpaid						Interest		Average
	Principal		Recorded		Allowance for		Income		Recorded
(in thousands)	Balance		Investment		Loan Losses		Recognized		Investment
With no related allowance recorded:
Real estate:
Residential	$	7,382	$	7,198	$	—	$	103	$	4,994
Multi-family		382		458		—		7		177
Commercial		522		517		—		3		197
Commercial and industrial		535		500		—		—		173
Total	$	8,821	$	8,673	$	—	$	113	$	5,541

Loans modified as troubled debt restructuring

The following table presents loans modified as troubled debt restructurings that occurred during the year ending September 30, 2022:

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
(Dollars in thousands)	loans	Investment		Investment
Troubled Debt Restructurings:
Residential real estate	2	$	1,011	$	1,011

Activity in Allowance for Loan Losses by Portfolio Segment

	Year Ended September 30, 2022
							Commercial		Construction
	Residential		Multi-		Commercial		and		and Land
	Real Estate		Family		Real Estate		Industrial		Development		Consumer
	Loans		Loans		Loans		Loans		Loans		Loans		Total
(in thousands)
Allowance for loan losses:
Beginning Balance	$	4,155	$	2,433	$	1,884	$	79	$	—	$	1	$	8,552
Charge-offs		—		(66)		—		(92)		—		—		(158)
Recoveries		—		—		—		—		—		—		—
Provision (credit) for loan losses		(204)		1,941		1,823		774		115		1		4,450
Ending Balance	$	3,951	$	4,308	$	3,707	$	761	$	115	$	2	$	12,844

	Year Ended September 30, 2021
							Commercial		Construction
	Residential		Multi-		Commercial		and		and Land
	Real Estate		Family		Real Estate		Industrial		Development		Consumer
	Loans		Loans		Loans		Loans		Loans		Loans		Total
(in thousands)
Allowance for loan losses:
Beginning Balance	$	5,103	$	1,506	$	1,221	$	38	$	—	$	1	$	7,869
Charge-offs		(267)		(32)		(30)		—		—		—		(329)
Recoveries		—		—		—		12		—		—		12
Provision (credit) for loan losses		(681)		959		693		29		—		—		1,000
Ending Balance	$	4,155	$	2,433	$	1,884	$	79	$	—	$	1	$	8,552

Allowance for Loan Losses and Recorded Investment by Portfolio Segment Based on Impairment Method

The following table represents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment evaluation method:

	September 30, 2022
							Commercial		Construction
	Residential		Multi-		Commercial		and		and Land
(in thousands)	Real Estate		Family		Real Estate		Industrial		Development		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		3,951		4,308		3,707		711		115		2		12,794
Purchased-credit impaired		—		—		—		50		—		—		50
Total allowance for loan losses	$	3,951	$	4,308	$	3,707	$	761	$	115	$	2	$	12,844
Loans:
Individually evaluated for impairment	$	5,392	$	2,348	$	5,875	$	907	$	—	$	—	$	14,522
Collectively evaluated for impairment		510,866		572,713		466,507		44,749		12,907		36		1,607,778
Purchased-credit impaired		—		—		602		629		—		—		1,231
Total loans held for investment	$	516,258	$	575,061	$	472,984	$	46,285	$	12,907	$	36	$	1,623,531

	September 30, 2021
							Commercial		Construction
	Residential		Multi-		Commercial		and			and Land
(in thousands)	Real Estate		Family		Real Estate		Industrial		Development		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		4,155		2,433		1,884		79		—		1		8,552
Purchased-credit impaired		—		—		—		—		—		—		—
Total allowance for loan losses	$	4,155	$	2,433	$	1,884	$	79	$	—	$	1	$	8,552
Loans:
Individually evaluated for impairment	$	7,198	$	458	$	517	$	500	$	—	$	—	$	8,673
Collectively evaluated for impairment		436,942		266,256		339,966		169,660		15,374		13		1,228,211
Purchased-credit impaired		—		—		8,324		1,917		—		—		10,241
Total loans held for investment	$	444,140	$	266,714	$	348,807	$	172,077	$	15,374	$	13	$	1,247,125