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Loans Receivable
 12 Months Ended
Sep. 30, 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.
 September 30, 2023September 30, 2022
 ($ in thousands)($ in thousands)
Gross loans by category
Commercial loans
   Multi-family$2,907,086 14.8 %$2,645,801 13.7 %
   Commercial real estate3,344,959 17.0 3,133,660 16.2 
   Commercial & industrial
2,321,717 11.8 2,350,984 12.1 
   Construction3,318,994 16.9 3,784,388 19.5 
   Land - acquisition & development201,538 1.1 291,301 1.5 
 Total commercial loans12,094,294 61.6 12,206,134 63.0 
Consumer loans
 Single-family residential6,451,270 32.8 5,771,862 29.8 
 Construction - custom672,643 3.4 974,652 5.0 
 Land - consumer lot loans125,723 0.6 153,240 0.8 
   HELOC234,410 1.2 203,528 1.0 
   Consumer70,164 0.4 75,543 0.4 
 Total consumer loans7,554,210 38.4 7,178,825 37.0 
Total gross loans19,648,504 100 %19,384,959 100 %
   Less:
      Allowance for loan losses177,207 172,808 
      Loans in process1,895,940 3,006,023 
      Net deferred fees, costs and discounts98,807 92,564 
Total loan contra accounts2,171,954 3,271,395 
Net loans$17,476,550 $16,113,564 


The Company elected to exclude AIR from the amortized cost basis of loans for disclosure purposes and from the calculations of estimated credit losses. As of September 30, 2023 and September 30, 2022, AIR for loans totaled $77,349,000 and $57,070,000, respectively, and is included in the “accrued interest receivable” line item on the Company’s consolidated statements of financial condition.
Loans in the amount of $8,941,201,000 and $8,224,951,000 at September 30, 2023 and September 30, 2022, respectively, were pledged to secure borrowings from the FHLB as part of our liquidity management strategy. The FHLB does not have the right to sell or re-pledge these loans.
The following summary breaks down the Company's fixed rate and adjustable rate loans by time to maturity or to rate adjustment. See Note G for details regarding fair value hedges of individual fixed rate commercial loans and also hedges of a specified portion of pools of prepayable fixed rate mortgage loans under the "last of layer" method.
September 30, 2023
Fixed-RateAdjustable-Rate
Term To MaturityLoans% of LoansTerm To Rate AdjustmentLoans% of Loans
 (In thousands) (In thousands)
Within 1 year$127,930 0.7 %Less than 1 year$5,380,534 30.5 %
1 to 3 years578,007 3.3 1 to 3 years658,830 3.7 
3 to 5 years996,370 5.6 3 to 5 years370,919 2.1 
5 to 10 years3,075,769 17.4 5 to 10 years124,216 0.7 
10 to 20 years468,223 2.7 10 to 20 years328 — 
Over 20 years5,871,624 33.3 Over 20 years1,007 — 
$11,117,923 63.0 %$6,535,834 37.0 %


The Company has granted loans to officers and directors of the Company and related interests. These loans are made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than the normal risk of collectability. The aggregate dollar amount of these loans, including unfunded commitments to lend, was $134,860,000 and $144,178,000 at September 30, 2023 and 2022, respectively. As of September 30, 2023, all of these loans were performing in accordance with contractual terms.

The following table sets forth the amortized cost basis of loans receivable for non-accrual loans and loans 90 days or more past due and still accruing.
 September 30, 2023September 30, 2022
 (In thousands, except ratio data)
Non-accrualNon-accrual with no ACL90 days or more past due and accruingNon-accrualNon-accrual with no ACL90 days or more past due and accruing
Commercial loans
Multi-family$5,127 $— $— $5,912 $— $— 
Commercial real estate23,435 — — 4,691 — — 
Commercial & industrial6,082 — — 5,693 1,308 — 
Construction— — — — — — 
Land - acquisition & development— — — — — — 
   Total commercial loans34,644 — — 16,296 1,308 — 
Consumer loans
Single-family residential14,918 — — 17,450 — — 
Construction - custom88 — — 435 — — 
Land - consumer lot loans9 — — 84 — — 
HELOC736 — — 233 — — 
Consumer27 — — 36 — — 
   Total consumer loans15,778 — — 18,238 — — 
Total loans$50,422 $— $— $34,534 $1,308 $— 
% of total loans0.29 %0.21 %
The following tables break down loan delinquencies by loan portfolio segment and class.
September 30, 2023Days Delinquent Based on $ Amount of Loans% based
on $
Loan typeLoans Receivable (Amortized Cost)Current306090Total Past Due
($ in thousands)
Commercial loans
   Multi-Family$2,886,594 $2,886,462 $— $— $132 $132 — %
   Commercial Real Estate3,310,101 3,285,673 848 145 23,435 24,428 0.74 
   Commercial & Industrial2,315,318 2,307,020 30 2,186 6,082 8,298 0.36 
   Construction1,838,936 1,838,936 — — — — — 
   Land - Acquisition & Development156,661 156,661 — — — — — 
Total commercial loans10,507,610 10,474,752 878 2,331 29,649 32,858 0.31 
Consumer loans
   Single-Family Residential6,388,990 6,365,065 6,441 6,068 11,416 23,925 0.37 
   Construction - Custom324,451 320,987 760 2,617 87 3,464 1.07 
   Land - Consumer Lot Loans124,842 124,231 358 245 8 611 0.49 
   HELOC237,754 235,708 1,050 314 682 2,046 0.86 
   Consumer70,110 69,699 228 107 76 411 0.59 
Total consumer loans7,146,147 7,115,690 8,837 9,351 12,269 30,457 0.43 
Total Loans$17,653,757 $17,590,442 $9,715 $11,682 $41,918 $63,315 0.36 %
Delinquency %99.64 %0.06 %0.07 %0.24 %0.36 %
September 30, 2022Days Delinquent Based on $ Amount of Loans% based
on $
Loan typeLoans Receivable (Amortized Cost)Current306090Total Past Due
($ in thousands)
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 loans classified as TDRs are accruing and performing loans where the borrower has proactively approached the Company about modifications due to temporary financial difficulties. Each request is individually evaluated for merit and likelihood of success. The concession for these loans is typically a payment reduction through a rate reduction of 100 to 200 bps for a specific term, usually six to 12 months. Interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans. As of September 30, 2023, the outstanding balance of TDRs was $46,117,000 as compared to $56,817,000 as of September 30, 2022. As of September 30, 2023, 97.9% of the restructured loans were performing. Single-family
residential loans comprised 84.7% of TDRs as of September 30, 2023. The Company's ACL methodology takes into account the following performance indicators for restructured loans: 1) time since modification, 2) current payment status and 3) geographic area.


We evaluate the credit quality of our commercial 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 credit quality indicator, loan class, and year of origination, the amortized cost basis of loans receivable as of September 30, 2023 and September 30, 2022.

September 30, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019
Prior to 2019
Revolving LoansRevolving to Term LoansTotal Loans
Commercial loans
Multi-family
Pass$135,859 $658,126 $850,998 $541,655 $135,965 $400,412 $49,523 $— $2,772,538 
Special Mention— 90,428 — — — — — — 90,428 
Substandard— 5,711 2,309 2,422 7,583 5,603 — — 23,628 
Total$135,859 $754,265 $853,307 $544,077 $143,548 $406,015 $49,523 $— $2,886,594 
Commercial real estate
Pass$221,057 $912,776 $735,069 $476,941 $262,945 $596,459 $2,349 $— $3,207,596 
Special Mention— — 788 — 4,059 — — — 4,847 
Substandard499 5,361 3,810 24,538 27,916 35,534 — — 97,658 
Total$221,556 $918,137 $739,667 $501,479 $294,920 $631,993 $2,349 $— $3,310,101 
Commercial & industrial
Pass$155,411 $258,798 $316,713 $117,089 $24,246 $175,042 $1,089,896 $27,681 $2,164,876 
Special Mention— — — — 2,940 — 3,707 — 6,647 
Substandard— 5,532 8,537 2,783 3,819 46,297 69,948 6,879 143,795 
Total$155,411 $264,330 $325,250 $119,872 $31,005 $221,339 $1,163,551 $34,560 $2,315,318 
Construction
Pass$235,150 $833,577 $559,850 $68,105 $46,390 $373 $74,821 $— $1,818,266 
Substandard2,901 5,119 12,650 — — — — — 20,670 
Total$238,051 $838,696 $572,500 $68,105 $46,390 $373 $74,821 $— $1,838,936 
Land - acquisition & development
Pass$20,593 $69,414 $39,276 $6,280 $351 $17,876 $2,600 $— $156,390 
Substandard— 271 — — — — — — 271 
Total$20,593 $69,685 $39,276 $6,280 $351 $17,876 $2,600 $— $156,661 
Total commercial loans
Pass$768,070 $2,732,691 $2,501,906 $1,210,070 $469,897 $1,190,162 $1,219,189 $27,681 $10,119,666 
Special Mention— 90,428 788 — 6,999 — 3,707 — 101,922 
Substandard3,400 21,994 27,306 29,743 39,318 87,434 69,948 6,879 286,022 
Total$771,470 $2,845,113 $2,530,000 $1,239,813 $516,214 $1,277,596 $1,292,844 $34,560 $10,507,610 
September 30, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019
Prior to 2019
Revolving LoansRevolving to Term LoansTotal Loans
Consumer loans
Single-family residential
Current$513,007 $1,478,479 $1,719,163 $718,250 $295,836 $1,640,330 $— $— $6,365,065 
30 days past due822 115 859 392 221 4,032 — — 6,441 
60 days past due— 1,526 1,420 1,325 — 1,797 — — 6,068 
90+ days past due— 1,470 666 1,408 — 7,872 — — 11,416 
Total$513,829 $1,481,590 $1,722,108 $721,375 $296,057 $1,654,031 $— $— $6,388,990 
Construction - custom
Current$92,081 $218,988 $8,838 $243 $358 $479 $— $— $320,987 
30 days past due— 760 — — — — — — 760 
60 days past due— — — 2,617 — — — — 2,617 
90+ days past due— 87 — — — — — — 87 
Total$92,081 $219,835 $8,838 $2,860 $358 $479 $— $— $324,451 
Land - consumer lot loans
Current$19,128 $41,658 $35,048 $11,517 $4,166 $12,714 $— $— $124,231 
30 days past due— — 358 — — — — — 358 
60 days past due— — 245 — — — — — 245 
90+ days past due— — — — — 8 — — 8 
Total$19,128 $41,658 $35,651 $11,517 $4,166 $12,722 $— $— $124,842 
HELOC
Current$— $— $— $— $— $3,733 $230,338 $1,637 $235,708 
30 days past due— — — — — 44 1,006 — 1,050 
60 days past due— — — — — 314 — — 314 
90+ days past due— — — — — — 682 — 682 
Total$— $— $— $— $— $4,091 $232,026 $1,637 $237,754 
Consumer
Current$662 $121 $9,748 $8,006 $16 $23,201 $27,945 $— $69,699 
30 days past due— — — — — 225 3 — 228 
60 days past due— — — — — 106 1 — 107 
90+ days past due— — — — 29 46 — 1 76 
Total$662 $121 $9,748 $8,006 $45 $23,578 $27,949 $1 $70,110 
Total consumer loans
Current$624,878 $1,739,246 $1,772,797 $738,016 $300,376 $1,680,457 $258,283 $1,637 $7,115,690 
30 days past due822 875 1,217 392 221 4,301 1,009 — 8,837 
60 days past due— 1,526 1,665 3,942 — 2,217 1 — 9,351 
90+ days past due— 1,557 666 1,408 29 7,926 682 1 12,269 
Total$625,700 $1,743,204 $1,776,345 $743,758 $300,626 $1,694,901 $259,975 $1,638 $7,146,147 
September 30, 2022Term Loans Amortized Cost Basis by Origination Year
(In thousands)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
(In thousands)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