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Loans Receivable
 6 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Loans Receivable Loans Receivable
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" above.

The Company's loans held for investment are divided into two portfolio segments, commercial loans and consumer loans, with each of those segments further split into loan classes for purposes of estimating the allowance for credit losses.
The following table is a summary of loans receivable by loan portfolio segment and class.
 March 31, 2023September 30, 2022
(In thousands)(In thousands)
Commercial loans
Multi-family$2,894,567 14.3 %$2,645,801 13.7 %
Commercial real estate3,283,151 16.3 3,133,660 16.2 
Commercial & industrial2,590,700 12.8 2,350,984 12.1 
Construction3,735,821 18.5 3,784,388 19.5 
Land - acquisition & development231,990 1.1 291,301 1.5 
Total commercial loans12,736,229 63.1 12,206,134 63.0 
Consumer loans
Single-family residential6,175,250 30.6 5,771,862 29.8 
Construction - custom840,475 4.2 974,652 5.0 
   Land - consumer lot loans141,215 0.7 153,240 0.8 
   HELOC218,179 1.1 203,528 1.0 
   Consumer71,083 0.4 75,543 0.4 
Total consumer loans7,446,202 36.9 7,178,825 37.0 
Total gross loans20,182,431 100 %19,384,959 100 %
   Less:
      Allowance for credit losses on loans177,420 172,808 
      Loans in process2,648,512 3,006,023 
      Net deferred fees, costs and discounts84,593 92,564 
Total loan contra accounts2,910,525 3,271,395 
Net loans$17,271,906 $16,113,564 

The Company elected to exclude accrued interest receivable from the amortized cost basis of loans for disclosure purposes and from the calculations of estimated credit losses. As of March 31, 2023, and September 30, 2022, AIR for loans totaled $71,830,000 and $57,070,000, respectively, and is included in the Interest receivable line item balance on the Company’s consolidated statements of financial condition.

Loans in the amount of $8,867,524,000 and $8,224,951,000 at March 31, 2023 and September 30, 2022, respectively, were pledged to secure borrowings from the Federal Home Loan Bank ("FHLB") as part of our liquidity management strategy. The FHLB does not have the right to sell or re-pledge these loans.
The following table sets forth the amortized cost basis of non-accrual loans and loans 90 days or more past due and accruing.
 
 March 31, 2023September 30, 2022
 (In thousands, except ratio data)
Non-accrualNon-accrual with no ACL (1)90 days or more past due and accruingNon-accrualNon-accrual with no ACL90 days or more past due and accruing
Commercial loans
Multi-family$5,844 $— $— $5,912 $— $— 
Commercial real estate4,519 — — 4,691 — — 
Commercial & industrial7,681 740 — 5,693 1,308 — 
Construction— — — — — — 
Land - acquisition & development— — — — — — 
   Total commercial loans18,044 740 — 16,296 1,308 — 
Consumer loans
Single-family residential16,396 — — 17,450 — — 
Construction - custom— — — 435 — — 
Land - consumer lot loans6 — — 84 — — 
HELOC128 — — 233 — — 
Consumer32 — — 36 — — 
   Total consumer loans16,562 — — 18,238 — — 
Total non-accrual loans$34,606 $740 $— $34,534 $1,308 $— 
% of total loans0.20 %0.21 %
(1) Amounts in the 'Non-accrual with no ACL' column are a subset of the amounts in the 'Non-accrual' column

The Company recognized interest income on non-accrual loans of approximately $1,039,000 in the six months ended March 31, 2023. If these loans had been on accrual status and performed according to their original contract terms, the Company would have recognized interest income of approximately $761,000 for the six months ended March 31, 2023. Recognized interest income for the six months ended March 31, 2023 was higher than what otherwise would have been recognized in the period due to the collection of past due amounts. Interest cash flows collected on non-accrual loans vary from period to period as those loans are brought current or are paid off.
The following tables provide details regarding loan delinquencies by loan portfolio and class.
 
March 31, 2023Days Delinquent Based on $ Amount of Loans% based
on $
Type of LoanLoans Receivable (Amortized Cost)Current306090Total Delinquent
(In thousands, except ratio data)
Commercial Loans
Multi-family$2,859,994 $2,859,862 $132 $— $— $132 — %
Commercial real estate3,258,304 3,256,293 2,011 — — 2,011 0.06 
Commercial & industrial2,585,196 2,580,997 509 2,960 730 4,199 0.16 
Construction1,608,513 1,608,008 505 — — 505 0.03 
Land - acquisition & development167,080 167,080 — — — — — 
   Total commercial loans10,479,087 10,472,240 3,157 2,960 730 6,847 0.07 
Consumer Loans
Single-family residential6,134,021 6,114,783 5,894 432 12,912 19,238 0.31 
Construction - custom403,783 403,696 87 — — 87 0.02 
Land - consumer lot loans140,140 140,061 79 — — 79 0.06 
HELOC221,159 219,811 600 624 124 1,348 0.61 
Consumer71,136 70,901 81 1 153 235 0.33 
   Total consumer loans6,970,239 6,949,252 6,741 1,057 13,189 20,987 0.30 
Total Loans$17,449,326 $17,421,492 $9,898 $4,017 $13,919 $27,834 0.16 %
Delinquency %99.84%0.06%0.02%0.08%0.16%



September 30, 2022Days Delinquent Based on $ Amount of Loans% based
on $
Type of LoanLoans Receivable (Amortized Cost)Current306090Total Delinquent
(In thousands, except ratio data)
Commercial Loans
Multi-family$2,626,479 $2,626,479 $— $— $— $— — %
Commercial real estate3,111,112 3,110,056 538 450 68 1,056 0.03 
Commercial & industrial2,343,403 2,336,791 — 919 5,693 6,612 0.28 
Construction1,423,891 1,423,891 — — — — 
Land - acquisition & development223,616 223,616 — — — — — 
  Total commercial loans9,728,501 9,720,833 538 1,369 5,761 7,668 0.08 
Consumer Loans
Single-family residential5,726,979 5,708,996 2,796 1,316 13,871 17,983 0.31 
Construction - custom397,343 396,908 — — 435 435 0.11 
Land - consumer lot loans151,945 151,746 — 139 60 199 0.13 
HELOC206,033 205,605 155 46 227 428 0.21 
Consumer75,571 75,357 162 17 35 214 0.28 
  Total consumer loans6,557,871 6,538,612 3,113 1,518 14,628 19,259 0.29 
Total Loans$16,286,372 $16,259,445 $3,651 $2,887 $20,389 $26,927 0.17 %
Delinquency %99.83%0.02%0.02%0.13%0.17%
Most TDRs are accruing and performing loans where the borrower has proactively approached the Company about modification due to temporary financial difficulties. Each request for modification is individually evaluated for merit and likelihood of success. The concession granted in a loan modification is typically a payment reduction through a rate reduction of between 100 to 200 basis points for a specific term, usually six to twenty-four months. Interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. As of March 31, 2023, 97.7% of the Company's $52,051,000 in TDRs were classified as performing. As of March 31, 2023, single-family residential loans comprised 81.9% of TDRs.

We evaluate the credit quality of our loans based on regulatory risk ratings and also consider other factors. Based on this evaluation, the loans are assigned a grade and classified as follows:

•Pass – the credit does not meet one of the definitions below.

•Special mention – A special mention credit is considered to be currently protected from loss but is potentially weak. No loss of principal or interest is foreseen; however, proper supervision and management attention is required to deter further deterioration in the credit. Assets in this category constitute some undue and unwarranted credit risk but not to the point of justifying a risk rating of substandard. The credit risk may be relatively minor yet constitutes an unwarranted risk in light of the circumstances surrounding a specific asset.

•Substandard – A substandard credit is an unacceptable credit. Additionally, repayment in the normal course is in jeopardy due to the existence of one or more well defined weaknesses. In these situations, loss of principal is likely if the weakness is not corrected. A substandard asset is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Assets so classified will have a well-defined weakness or weaknesses that jeopardize the collection or liquidation of the debt. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets risk rated substandard.

•Doubtful – A credit classified doubtful has all the weaknesses inherent in one classified substandard with the added characteristic that the weakness makes collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The probability of loss is high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans.

•Loss – Credits classified loss are considered uncollectible and of such little value that their continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be affected in the future. Losses should be taken in the period in which they are identified as uncollectible. Partial charge-off versus full charge-off may be taken if the collateral offers some identifiable protection.
The following tables present by primary credit quality indicator, loan class, and year of origination, the amortized cost basis of loans receivable as of March 31, 2023 and September 30, 2022.
March 31, 2023Term Loans Amortized Cost Basis by Origination Year
YTD 20232022202120202019Prior to 2019Revolving LoansRevolving to Term LoansTotal Loans
Commercial loans
Multi-family
Pass$119,024 $630,346 $780,948 $583,407 $152,445 $441,066 $38,598 $— $2,745,834 
Special Mention— 94,503 — — — — — — 94,503 
Substandard— 5,121 2,331 4,159 — 8,046 — — 19,657 
Total$119,024 $729,970 $783,279 $587,566 $152,445 $449,112 $38,598 $— $2,859,994 
Commercial real estate
Pass$165,837 $838,106 $732,623 $465,913 $285,084 $680,459 $1,350 $— $3,169,372 
Special Mention500 — — — — — — — 500 
Substandard— 5,495 3,840 24,815 31,827 20,001 2,454 — 88,432 
Total$166,337 $843,601 $736,463 $490,728 $316,911 $700,460 $3,804 $— $3,258,304 
Commercial & industrial
Pass$134,404 $249,540 $339,808 $126,506 $31,758 $208,250 $1,301,176 $23,893 $2,415,335 
Special Mention— — — — — 1,558 — — 1,558 
Substandard572 27,141 8,771 5,220 4,445 25,141 90,076 — 161,366 
Doubtful— — 2,959 — — — 3,978 — 6,937 
Total$134,976 $276,681 $351,538 $131,726 $36,203 $234,949 $1,395,230 $23,893 $2,585,196 
Construction
Pass$66,866 $666,139 $657,393 $74,905 $39,687 $375 $71,634 $— $1,576,999 
Special Mention3,631 14,341 13,542 — — — — — 31,514 
Total$70,497 $680,480 $670,935 $74,905 $39,687 $375 $71,634 $— $1,608,513 
Land - acquisition & development
Pass$14,807 $69,949 $45,549 $9,455 $1,378 $23,073 $2,600 $— $166,811 
Special Mention— 269 — — — — — — 269 
Total$14,807 $70,218 $45,549 $9,455 $1,378 $23,073 $2,600 $— $167,080 
Total commercial loans
Pass$500,938 $2,454,080 $2,556,321 $1,260,186 $510,352 $1,353,223 $1,415,358 $23,893 $10,074,351 
Special Mention4,131 109,113 13,542 — — 1,558 — — 128,344 
Substandard572 37,757 14,942 34,194 36,272 53,188 92,530 — 269,455 
Doubtful— — 2,959 — — — 3,978 — 6,937 
Total$505,641 $2,600,950 $2,587,764 $1,294,380 $546,624 $1,407,969 $1,511,866 $23,893 $10,479,087 
March 31, 2023Term Loans Amortized Cost Basis by Origination Year
YTD 20232022202120202019Prior to 2019Revolving LoansRevolving to Term LoansTotal Loans
Consumer loans
Single-family residential
Current$272,177 $1,285,524 $1,748,863 $758,020 $309,481 $1,740,718 $— $— $6,114,783 
30 days past due— 804 — 745 76 4,269 — — 5,894 
60 days past due— 198 174 — — 60 — — 432 
90+ days past due— — 674 — 752 11,486 — — 12,912 
Total$272,177 $1,286,526 $1,749,711 $758,765 $310,309 $1,756,533 $— $— $6,134,021 
Construction - custom
Current$23,021 $341,449 $34,918 $3,472 $358 $478 $— $— $403,696 
30 days past due— 87 — — — — — — 87 
Total$23,021 $341,536 $34,918 $3,472 $358 $478 $— $— $403,783 
Land - consumer lot loans
Current$10,606 $48,382 $48,199 $13,476 $4,506 $14,892 $— $— $140,061 
30 days past due— — — 79 — — — — 79 
Total$10,606 $48,382 $48,199 $13,555 $4,506 $14,892 $— $— $140,140 
HELOC
Current$— $— $— $— $— $4,546 $214,440 $825 $219,811 
30 days past due— — — — — 96 504 — 600 
60 days past due— — — — — 151 473 — 624 
90+ days past due— — — — — 40 84 — 124 
Total$— $— $— $— $— $4,833 $215,501 $825 $221,159 
Consumer
Current$656 $138 $9,889 $8,012 $16 $26,833 $25,357 $— $70,901 
30 days past due— — — — — 80 1 — 81 
60 days past due— — — — — — 1 — 1 
90+ days past due1 — — — 30 122 — — 153 
Total$657 $138 $9,889 $8,012 $46 $27,035 $25,359 $— $71,136 
Total consumer loans
Current$306,460 $1,675,493 $1,841,869 $782,980 $314,361 $1,787,467 $239,797 $825 $6,949,252 
30 days past due— 891 — 824 76 4,445 505 — 6,741 
60 days past due— 198 174 — — 211 474 — 1,057 
90+ days past due1 — 674 — 782 11,648 84 — 13,189 
Total$306,461 $1,676,582 $1,842,717 $783,804 $315,219 $1,803,771 $240,860 $825 $6,970,239 
September 30, 2022Term Loans Amortized Cost Basis by Origination Year
20222021202020192018Prior to 2018Revolving LoansRevolving to Term LoansTotal Loans
Commercial loans
Multi-family
Pass$657,144 $778,936 $500,917 $168,568 $157,144 $315,858 $34,102 $— $2,612,669 
Substandard3,951 — 1,729 — 6,560 1,570 — — 13,810 
Total$661,095 $778,936 $502,646 $168,568 $163,704 $317,428 $34,102 $— $2,626,479 
Commercial real estate
Pass$820,490 $679,321 $492,826 $301,033 $218,171 $541,008 $1,391 $— $3,054,240 
Special Mention— 1,594 — — — — — — 1,594 
Substandard259 — 6,074 30,579 4,857 10,923 2,586 — 55,278 
Total$820,749 $680,915 $498,900 $331,612 $223,028 $551,931 $3,977 $— $3,111,112 
Commercial & industrial
Pass$254,668 $435,630 $145,799 $39,102 $25,709 $197,909 $1,097,696 $255 $2,196,768 
Special Mention2,503 — — — — — 29,153 — 31,656 
Substandard2,021 12,639 9,803 5,029 1,213 25,519 58,755 — 114,979 
Total$259,192 $448,269 $155,602 $44,131 $26,922 $223,428 $1,185,604 $255 $2,343,403 
Construction
Pass$510,764 $671,611 $142,816 $27,260 $375 $— $68,808 $— $1,421,634 
Substandard— 2,257 — — — — — — 2,257 
Total$510,764 $673,868 $142,816 $27,260 $375 $— $68,808 $— $1,423,891 
Land - acquisition & development
Pass$100,022 $64,539 $16,934 $3,391 $8,175 $27,955 $2,600 $— $223,616 
Total$100,022 $64,539 $16,934 $3,391 $8,175 $27,955 $2,600 $— $223,616 
Total commercial loans
Pass$2,343,088 $2,630,037 $1,299,292 $539,354 $409,574 $1,082,730 $1,204,597 $255 $9,508,927 
Special Mention2,503 1,594 — — — — 29,153 — 33,250 
Substandard6,231 14,896 17,606 35,608 12,630 38,012 61,341 — 186,324 
Total$2,351,822 $2,646,527 $1,316,898 $574,962 $422,204 $1,120,742 $1,295,091 $255 $9,728,501 
September 30, 2022Term Loans Amortized Cost Basis by Origination Year
20222021202020192018Prior to 2018Revolving LoansRevolving to Term LoansTotal Loans
Consumer loans
Single-family residential
Current$1,131,152 $1,652,242 $771,769 $320,546 $276,093 $1,557,194 $— $— $5,708,996 
30 days past due— — 400 604 — 1,792 — — 2,796 
60 days past due— — — — — 1,316 — — 1,316 
90+ days past due— — — 477 — 13,394 — — 13,871 
Total$1,131,152 $1,652,242 $772,169 $321,627 $276,093 $1,573,696 $— $— $5,726,979 
Construction - custom
Current$235,030 $150,434 $9,811 $1,155 $478 $— $— $— $396,908 
90+ days past due— 435 — — — — — — 435 
Total$235,030 $150,869 $9,811 $1,155 $478 $— $— $— $397,343 
Land - consumer lot loans
Current$53,396 $60,454 $15,876 $5,399 $3,433 $13,188 $— $— $151,746 
60 days past due— — 139 — — — — — 139 
90+ days past due— — — — — 60 — — 60 
Total$53,396 $60,454 $16,015 $5,399 $3,433 $13,248 $— $— $151,945 
HELOC
Current$— $— $— $— $— $4,349 $200,267 $989 $205,605 
30 days past due— — — — — 95 60 — 155 
60 days past due— — — — — 29 17 — 46 
90+ days past due— — — — — — 227 — 227 
Total$— $— $— $— $— $4,473 $200,571 $989 $206,033 
Consumer
Current$1,386 $10,156 $8,038 $215 $23,919 $6,449 $25,194 $— $75,357 
30 days past due— — — 2 — 153 7 — 162 
60 days past due— — — — — 17 — — 17 
90+ days past due1 — — 32 — 2 — — 35 
Total$1,387 $10,156 $8,038 $249 $23,919 $6,621 $25,201 $— $75,571 
Total consumer loans
Current$1,420,964 $1,873,286 $805,494 $327,315 $303,923 $1,581,180 $225,461 $989 $6,538,612 
30 days past due— — 400 606 — 2,040 67 — 3,113 
60 days past due— — 139 — — 1,362 17 — 1,518 
90+ days past due1 435 — 509 — 13,456 227 — 14,628 
Total$1,420,965 $1,873,721 $806,033 $328,430 $303,923 $1,598,038 $225,772 $989 $6,557,871