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Allowance for Losses on Loans
 3 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Allowance for Losses on Loans Allowance for Losses on Loans
For a detailed discussion of loans and credit quality, including accounting policies and the CECL methodology used to estimate the allowance for credit losses, see Note A "Summary of Significant Accounting Policies."

The following tables summarize the activity in the allowance for loan losses by loan portfolio segment and class. 
Three Months Ended December 31, 2022Beginning AllowanceCharge-offsRecoveriesProvision &
Transfers(1)		Ending Allowance
 (In thousands)
Commercial loans
   Multi-family$12,013 $— $— $311 $12,324 
   Commercial real estate25,814 — 4 1,562 27,380 
   Commercial & industrial57,210 (82)32 6,713 63,873 
   Construction26,161 — — (28)26,133 
   Land - acquisition & development12,278 — 16 (3,722)8,572 
      Total commercial loans133,476 (82)52 4,836 138,282 
Consumer loans
   Single-family residential25,518 — 430 (473)25,475 
   Construction - custom3,410 — — 90 3,500 
   Land - consumer lot loans5,047 — — (905)4,142 
   HELOC2,482 — 1 105 2,588 
   Consumer2,875 (146)234 (153)2,810 
      Total consumer loans39,332 (146)665 (1,336)38,515 
Total ACL - loans$172,808 $(228)$717 $3,500 $176,797 
(1) Provision & transfer amounts within the table do not include provision recapture for unfunded commitments of $1,000,000.
Three Months Ended December 31, 2021Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers (1)
Ending Allowance
 (In thousands)
Commercial loans
   Multi-family$16,949 $— $— $(956)$15,993 
   Commercial real estate23,437 (529)44 2,770 25,722 
   Commercial & industrial45,957 (43)62 1,255 47,231 
   Construction25,585 — 2,000 (2,819)24,766 
   Land - acquisition & development13,447 (2)20 660 14,125 
      Total commercial loans125,375 (574)2,126 910 127,837 
Consumer loans
   Single-family residential30,978 — 405 (1,277)30,106 
   Construction - custom4,907 — — (1,188)3,719 
   Land - consumer lot loans4,939 (27)5 67 4,984 
   HELOC2,390 — 1 (26)2,365 
   Consumer2,711 (76)251 (486)2,400 
      Total consumer loans45,925 (103)662 (2,910)43,574 
Total loans$171,300 $(677)$2,788 $(2,000)$171,411 
(1) Provision & transfer amounts within the table do not include the provision for unfunded commitments of $2,500,000.
The Company recorded a $2,500,000 provision for credit losses for the three months ended December 31, 2022, compared with a provision for credit losses of $500,000 for the three months ended December 31, 2021. The provision in the three months ended December 31, 2022 was primarily due to reserving for growth in loans receivable largely offset by improvements in management's assessment of the credit quality of certain loan portfolios. The provision for the three months ended December 31, 2021 was primarily due to reserving for growth in loans receivable and changes in composition of the loan portfolio. Recoveries, net of charge-offs, totaled $489,000 for the three months ended December 31, 2022, compared to $2,111,000 during the three months ended December 31, 2021.

Non-performing assets were $38,650,000, or 0.18% of total assets, at December 31, 2022, compared to $44,554,000, or 0.21% of total assets, at September 30, 2022. Non-accrual loans were $29,180,000 at December 31, 2022, compared to $34,534,000 at September 30, 2022. Delinquencies, as a percent of total loans, were 0.16% at December 31, 2022, compared to 0.17% at September 30, 2022.

The Company has an asset quality review function that analyzes its loan portfolio and reports the results of the review to its Board of Directors on a quarterly basis. The single-family residential, HELOC and consumer portfolios are evaluated based on their performance as a pool of loans, since no single loan is individually significant or judged by its risk rating, size or potential risk of loss. The construction, land, multi-family, commercial real estate and commercial and industrial loans are risk rated on a loan by loan basis to determine the relative risk inherent in specific borrowers or loans. Based on that risk rating, the loans are assigned a grade and classified as described in Note D "Loans Receivable."


The following tables provide the amortized cost of loans receivable based on risk rating categories as previously defined.
December 31, 2022Internally Assigned Grade
 PassSpecial mentionSubstandardDoubtfulLossTotal
 (In thousands, except ratio data)
Loan type
Commercial loans
  Multi-family$2,679,562 $— $16,197 $— $— $2,695,759 
  Commercial real estate3,129,793 1,382 82,133 — — 3,213,308 
  Commercial & industrial2,475,380 5,451 140,435 — — 2,621,266 
  Construction1,629,253 — 8,246 — — 1,637,499 
  Land - acquisition & development191,162 — — — — 191,162 
    Total commercial loans10,105,150 6,833 247,011 — — 10,358,994 
Consumer loans
  Single-family residential5,947,295 — 20,383 — — 5,967,678 
  Construction - custom408,127 — 436 — — 408,563 
  Land - consumer lot loans147,007 — 71 — — 147,078 
  HELOC214,771 — 133 — — 214,904 
  Consumer73,161 — 7 — — 73,168 
    Total consumer loans6,790,361 — 21,030 — — 6,811,391 
Total$16,895,511 $6,833 $268,041 $— $— $17,170,385 
Total grade as a % of total loans98.40 %0.04 %1.56 %— %— %
September 30, 2022Internally Assigned Grade
 PassSpecial mentionSubstandardDoubtfulLossTotal Gross Loans
 (In thousands, except ratio data)
Loan type
Commercial loans
  Multi-family$2,612,669 $— $13,810 $— $— $2,626,479 
  Commercial real estate3,054,241 1,594 55,277 — — 3,111,112 
  Commercial & industrial2,196,767 31,656 114,980 — — 2,343,403 
  Construction1,421,634 — 2,257 — — 1,423,891 
  Land - acquisition & development223,616 — — — — 223,616 
    Total commercial loans9,508,927 33,250 186,324 — — 9,728,501 
Consumer loans
  Single-family residential5,706,199 — 20,780 — — 5,726,979 
  Construction - custom396,908 — 435 — — 397,343 
  Land - consumer lot loans151,723 — 222 — — 151,945 
  HELOC205,800 — 233 — — 206,033 
  Consumer75,570 — 1 — — 75,571 
    Total consumer loans6,536,200 — 21,671 — — 6,557,871 
Total loans$16,045,127 $33,250 $207,995 $— $— $16,286,372 
Total grade as a % of total gross loans98.52 %0.20 %1.28 %— %— %
The following tables provide information on amortized cost of loans receivable based on borrower payment activity.

December 31, 2022Performing LoansNon-Performing Loans
 Amount% of Total
Loans		Amount% of Total
Loans
 (In thousands, except ratio data)
Commercial loans
   Multi-family$2,689,880 99.8 %$5,879 0.2 %
   Commercial real estate3,208,673 99.9 4,635 0.1 
   Commercial & industrial2,620,360 100.0 906 — 
   Construction1,637,499 100.0 — 0.0 
   Land - acquisition & development191,162 100.0 — — 
      Total commercial loans10,347,574 99.9 11,420 0.1 
Consumer loans
   Single-family residential5,950,594 99.7 17,084 0.3 
   Construction - custom408,128 99.9 435 0.1 
   Land - consumer lot loans147,007 100.0 71 0.0 
   HELOC214,770 99.9 134 0.1 
   Consumer73,132 100.0 36 0.0 
      Total consumer loans6,793,631 99.7 17,760 0.3 
Total loans$17,141,205 99.8 %$29,180 0.2 %
September 30, 2022Performing LoansNon-Performing Loans
 Amount% of Total
Loans		Amount% of Total
Loans
 (In thousands, except ratio data)
Commercial loans
   Multi-family$2,620,567 99.8 %$5,912 0.2 %
   Commercial real estate3,106,421 99.8 4,691 0.2 
   Commercial & industrial2,337,710 99.8 5,693 0.2 
   Construction1,423,891 100.0 — — 
   Land - acquisition & development223,616 100.0 — — 
      Total commercial loans9,712,205 99.8 16,296 0.2 
Consumer loans
   Single-family residential5,709,529 99.7 17,450 0.3 
   Construction - custom396,908 99.9 435 0.1 
   Land - consumer lot loans151,861 99.9 84 0.1 
   HELOC205,800 99.9 233 0.1 
   Consumer75,535 100.0 36 0.0 
      Total consumer loans6,539,633 99.7 18,238 0.4 
Total loans$16,251,838 99.8 %$34,534 0.2 %