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Loans Receivable
 9 Months Ended
Jun. 30, 2024
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. Loans held for sale of approximately $0.5 billion are excluded from the following tables.
 June 30, 2024September 30, 2023
Gross loans by category(In thousands)(In thousands)
Commercial loans
Multi-family$4,616,359 20.5 %$2,907,086 14.8 %
Commercial real estate3,781,247 16.8 3,344,959 17.0 
Commercial & industrial2,394,978 10.7 2,321,717 11.8 
Construction2,247,530 10.0 3,318,994 16.9 
Land - acquisition & development195,796 0.9 201,538 1.0 
Total commercial loans13,235,910 58.9 12,094,294 61.6 
Consumer loans
Single-family residential8,364,415 37.2 6,451,270 32.8 
Construction - custom414,483 1.9 672,643 3.4 
   Land - consumer lot loans112,317 0.5 125,723 0.6 
   HELOC255,271 1.1 234,410 1.2 
   Consumer84,445 0.4 70,164 0.4 
Total consumer loans9,230,931 41.1 7,554,210 38.4 
Total gross loans22,466,841 100 %19,648,504 100 %
   Less:
      Allowance for credit losses on loans203,824 177,207 
      Loans in process1,094,956 1,895,940 
      Net deferred fees, costs and discounts294,142 98,807 
Total loan contra accounts1,592,922 2,171,954 
Net loans$20,873,919 $17,476,550 

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 June 30, 2024, and September 30, 2023, AIR for loans totaled $92,457,000 and $77,349,000, respectively, and is included in the Interest receivable line item balance on the Company’s consolidated statements of financial condition.

As of June 30, 2024, loans totaling $17,407,607,000 were pledged to secure borrowings and available lines of credit. None of the agencies to which we have pledged loans have the right to sell or re-pledge them.
The following table sets forth the amortized cost basis of non-accrual loans and loans 90 days or more past due and accruing.
 
 June 30, 2024September 30, 2023
 (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$9,984 $— $— $5,127 $— $— 
Commercial real estate26,408 — — 23,435 — — 
Commercial & industrial2,138 — — 6,082 — — 
Construction1,120 — — — — 
Land - acquisition & development74 — — — — — 
   Total commercial loans39,724 — — 34,644 — — 
Consumer loans
Single-family residential20,422 — — 14,918 — — 
Construction - custom88 — — 88 — — 
Land - consumer lot loans236 — — 9 — — 
HELOC758 — — 736 — — 
Consumer40 — — 27 — — 
   Total consumer loans21,544 — — 15,778 — — 
Total non-accrual loans$61,268 $— $— $50,422 $— $— 
% of total net loans0.29 %0.29 %

The Company recognized interest income on non-accrual loans of approximately $706,000 in the nine months ended June 30, 2024 as a result of the collection of past due amounts. 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 $2,121,000 for the nine months ended June 30, 2024. 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.
 
June 30, 2024Days 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$4,513,323 $4,506,711 $— $2,651 $3,961 $6,612 0.15 %
Commercial real estate3,746,945 3,746,356 — 589 — 589 0.02 
Commercial & industrial2,389,236 2,387,098 — — 2,138 2,138 0.09 
Construction1,440,152 1,439,032 — 360 760 1,120 0.08 
Land - acquisition & development156,424 156,350 — — 74 74 0.05 
   Total commercial loans12,246,080 12,235,547 — 3,600 6,933 10,533 0.09 
Consumer Loans
Single-family residential8,186,361 8,154,250 10,925 4,937 16,249 32,111 0.39 
Construction - custom190,433 189,585 760 — 88 848 0.45 
Land - consumer lot loans111,574 110,871 254 213 236 703 0.63 
HELOC258,833 256,582 1,366 178 707 2,251 0.87 
Consumer84,462 84,187 127 108 40 275 0.33 
   Total consumer loans8,831,663 8,795,475 13,432 5,436 17,320 36,188 0.41 
Total Loans$21,077,743 $21,031,022 $13,432 $9,036 $24,253 $46,721 0.22 %
Delinquency %99.78%0.06%0.04%0.12%0.22%



September 30, 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$2,886,594 $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%
On October 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminated the accounting guidance on troubled debt restructurings ("TDRs") and requires enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. This guidance was applied on a prospective basis. These modified balances are included in their segment cohort based on loan type for the purpose of calculating historical loss rates as described in Note A.
Loans may be modified as the result of borrowers experiencing financial difficulty needing relief from the contractual terms of their loan. Most loan modifications to borrowers experiencing financial difficulty are accruing and performing loans where the borrower has approached the Company about modification due to temporary financial difficulties. Each request for modification is individually evaluated for merit and likelihood of success. Often a term extension is needed in the short term in order to evaluate the need for further corrective action. Payment delays and interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans.
For commercial loans, modifications could be any of the above-listed modification types available or a mix thereof. Modifications to extend the term, lower the payment amount or delay payment are made for the purposes of providing borrowers additional time to return to compliance with the terms of their loans. Renewals of commercial lines to borrowers experiencing financial difficulty are included within the disclosures below though many of these are made in the normal course of business.
For consumer loans, modifications typically consist of minor payment delays or deferrals and may include a modification of the existing contractual rate or extension of the maturity date, or both, when it is determined the borrowers are likely to successfully maintain compliance with these modified loan terms.

The following table presents the amortized basis of loans that were modified to borrowers experiencing financial difficulty during the period by loan class and modification type. All such modifications during the quarter were term extensions.

Three Months Ended June 30, 2024
Loan ClassTerm Extension% of Total Loan Class BalanceWtd. Avg.
Term Extension
( in thousands)(in months)
Commercial real estate$23,435 0.63 %36
Commercial & industrial24,233 1.01 9
Total commercial loans47,668 0.20 
Single-family residential563 0.01 6
Total consumer loans563 0.01 
Total Loans$48,231 0.23 %
Nine Months Ended June 30, 2024
Loan ClassTerm Extension% of Total Loan Class BalanceWtd. Avg.
Term Extension
( in thousands)(in months)
Commercial real estate$23,502 0.63 %36
Commercial & industrial56,891 2.38 8
Construction13,153 0.91 15
Total commercial loans93,546 0.76 
Single-family residential563 0.01 6
Total commercial loans563 0.01 %
Total Loans$94,109 0.45 %

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts. None of the loans modified in the nine months ended June 30, 2024 was past due as of June 30, 2024. None of the loans above have defaulted after modification.

The Company evaluates the credit quality of its 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 June 30, 2024 and September 30, 2023. There were no commercial loans classified as Doubtful or Loss as of either date.
June 30, 2024Term Loans Amortized Cost Basis by Origination Year
YTD 20242023202220212020Prior to 2020Revolving LoansRevolving to Term LoansTotal Loans
Commercial loans
Multi-family
Pass$75,580 $187,791 $1,528,403 $1,184,931 $589,557 $742,732 $31,628 $17,119 $4,357,741 
Special Mention— — 92,856 2,667 — 4,256 — — 99,779 
Substandard— — 6,928 5,876 6,696 36,303 — — 55,803 
Total$75,580 $187,791 $1,628,187 $1,193,474 $596,253 $783,291 $31,628 $17,119 $4,513,323 
Commercial real estate
Pass$173,108 $245,719 $1,114,426 $726,381 $481,590 $839,432 $16,509 $— $3,597,165 
Special Mention— — 2,870 23,090 — 16,246 — — 42,206 
Substandard— 498 8,868 2,260 30,652 65,296 — — 107,574 
Total$173,108 $246,217 $1,126,164 $751,731 $512,242 $920,974 $16,509 $— $3,746,945 
Gross Charge-offs— — — — — 203 — 203 
Commercial & industrial
Pass$33,674 $154,481 $230,569 $289,491 $92,965 $167,152 $1,145,709 $2,037 $2,116,078 
Special Mention— 14,565 9,696 1,445 11,280 239 53,157 — 90,382 
Substandard— 2,009 45,401 1,565 2,586 47,741 83,473 1 182,776 
Total$33,674 $171,055 $285,666 $292,501 $106,831 $215,132 $1,282,339 $2,038 $2,389,236 
Gross Charge-offs— — — 10 — 31 2,331 101 2,473 
Construction
Pass$95,296 $391,954 $589,236 $262,828 $— $— $72,788 $— $1,412,102 
Special Mention— 8,093 — 3,096 — — — — 11,189 
Substandard787 2,161 760 13,153 — — — — 16,861 
Total$96,083 $402,208 $589,996 $279,077 $— $— $72,788 $— $1,440,152 
Land - acquisition & development
Pass$13,847 $14,374 $57,384 $46,802 $5,344 $18,260 $— $— $156,011 
Special Mention— — — — — 339 — — 339 
Substandard— — — — 74 — — — 74 
Total$13,847 $14,374 $57,384 $46,802 $5,418 $18,599 $— $— $156,424 
Gross Charge-offs— — — — — 18 — — 18 
Total commercial loans
Pass$391,505 $994,319 $3,520,018 $2,510,433 $1,169,456 $1,767,576 $1,266,634 $19,156 $11,639,097 
Special Mention— 22,658 105,422 30,298 11,280 21,080 53,157 — 243,895 
Substandard787 4,668 61,957 22,854 40,008 149,340 83,473 1 363,088 
Total$392,292 $1,021,645 $3,687,397 $2,563,585 $1,220,744 $1,937,996 $1,403,264 $19,157 $12,246,080 
Gross Charge-offs$— $— $— $10 $— $252 $2,331 $101 $2,694 
June 30, 2024Term Loans Amortized Cost Basis by Origination Year
YTD 20242023202220212020Prior to 2020Revolving LoansRevolving to Term LoansTotal Loans
Consumer loans
Single-family residential
Current$224,535 $757,335 $2,268,859 $2,099,611 $824,073 $1,979,837 $— $— $8,154,250 
30 days past due— 1,312 1,812 1,616 — 6,185 — — 10,925 
60 days past due— — 1,432 1,203 263 2,039 — — 4,937 
90+ days past due— 820 3,494 2,575 453 8,907 — — 16,249 
Total$224,535 $759,467 $2,275,597 $2,105,005 $824,789 $1,996,968 $— $— $8,186,361 
Gross Charge-offs— — 13 — — 131 — — 144 
Construction - custom
Current$26,660 $126,878 $33,910 $1,779 $— $358 $— $— $189,585 
30 days past due— — 760 — — — — — 760 
90+ days past due— — 88 — — — — — 88 
Total$26,660 $126,878 $34,758 $1,779 $— $358 $— $— $190,433 
Land - consumer lot loans
Current$13,385 $16,245 $32,007 $25,124 $9,747 $14,363 $— $— $110,871 
30 days past due— — 182 72 — — — — 254 
60 days past due— — — 213 — — — — 213 
90+ days past due— — 105 131 — — — — 236 
Total$13,385 $16,245 $32,294 $25,540 $9,747 $14,363 $— $— $111,574 
HELOC
Current$— $— $— $— $— $4,502 $251,116 $964 $256,582 
30 days past due— — — — — 297 1,069 — 1,366 
60 days past due— — — — — 178 — — 178 
90+ days past due— — — — — — 707 — 707 
Total$— $— $— $— $— $4,977 $252,892 $964 $258,833 
Consumer
Current$1,037 $56 $1 $9,493 $7,994 $19,382 $46,224 $— $84,187 
30 days past due— — — — — 127 — — 127 
60 days past due— — — — — 102 6 — 108 
90+ days past due— — — — — 31 9 — 40 
Total$1,037 $56 $1 $9,493 $7,994 $19,642 $46,239 $— $84,462 
Gross Charge-offs— — — — — 118 379 16 513 
Total consumer loans
Current$265,617 $900,514 $2,334,777 $2,136,007 $841,814 $2,018,442 $297,340 $964 $8,795,475 
30 days past due— 1,312 2,754 1,688 — 6,609 1,069 — 13,432 
60 days past due— — 1,432 1,416 263 2,319 6 — 5,436 
90+ days past due— 820 3,687 2,706 453 8,938 716 — 17,320 
Total past due— 2,132 7,873 5,810 716 17,866 1,791 — 36,188 
Total$265,617 $902,646 $2,342,650 $2,141,817 $842,530 $2,036,308 $299,131 $964 $8,831,663 
Gross Charge-offs$— $— $13 $— $— $249 $379 $16 $657 
September 30, 2023Term Loans Amortized Cost Basis by Origination Year
20232022202120202019Prior to 2019Revolving 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
20232022202120202019Prior to 2019Revolving 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