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Loans Receivable
 12 Months Ended
Sep. 30, 2022
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, 2022September 30, 2021
 ($ in thousands)($ in thousands)
Gross loans by category
Commercial loans
   Multi-family$2,645,801 13.7 %$2,291,477 14.0 %
   Commercial real estate3,133,660 16.2 2,443,845 15.0 
   Commercial & industrial (1)2,350,984 12.1 2,314,654 14.2 
   Construction3,784,388 19.5 2,888,214 17.7 
   Land - acquisition & development291,301 1.5 222,457 1.4 
 Total commercial loans12,206,134 63.0 10,160,647 62.3 
Consumer loans
 Single-family residential5,771,862 29.8 4,951,627 30.4 
 Construction - custom974,652 5.0 783,221 4.8 
 Land - consumer lot loans153,240 0.8 149,956 0.9 
   HELOC203,528 1.0 165,989 1.0 
   Consumer75,543 0.4 87,892 0.5 
 Total consumer loans7,178,825 37.0 6,138,685 37.7 
Total gross loans19,384,959 100 %16,299,332 100 %
   Less:
      Allowance for loan losses172,808 171,300 
      Loans in process3,006,023 2,232,836 
      Net deferred fees, costs and discounts92,564 61,626 
Total loan contra accounts3,271,395 2,465,762 
Net loans$16,113,564 $13,833,570 
(1) Includes $10,237,000 and $311,795,000 of SBA Payroll Protection Program loans as of September 30, 2022 and
September 30, 2021, respectively.


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, 2022 and September 30, 2021, AIR for loans totaled $57,070,000 and $46,234,000, 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 $8,224,951,000 and $5,930,015,000 at September 30, 2022 and September 30, 2021, 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, 2022
Fixed-RateAdjustable-Rate
Term To MaturityLoans% of LoansTerm To Rate AdjustmentLoans% of Loans
 (In thousands) (In thousands)
Within 1 year$146,178 0.9 %Less than 1 year$4,930,819 30.3 %
1 to 3 years459,554 2.8 1 to 3 years474,147 2.9 
3 to 5 years979,946 6.0 3 to 5 years415,388 2.6 
5 to 10 years2,232,082 13.7 5 to 10 years108,678 0.7 
10 to 20 years1,171,724 7.2 10 to 20 years4 — 
Over 20 years5,367,852 33.0 Over 20 years— — 
$10,357,336 63.6 %$5,929,036 36.4 %


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 $144,178,000 and $142,806,000 at September 30, 2022 and 2021, respectively. As of September 30, 2022, 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, 2022September 30, 2021
 (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$5,912 $— $— $475 $— $— 
Commercial real estate4,691 — — 8,038 — — 
Commercial & industrial5,693 1,308 — 365 30 — 
Construction— — — 505 — — 
Land - acquisition & development— — — 2,340 — — 
   Total commercial loans16,296 1,308 — 11,723 30 — 
Consumer loans
Single-family residential17,450 — — 19,320 — — 
Construction - custom435 — — — — — 
Land - consumer lot loans84 — — 359 — — 
HELOC233 — — 287 — — 
Consumer36 — — 60 — — 
   Total consumer loans18,238 — — 20,026 — — 
Total loans$34,534 $1,308 $— $31,749 $30 $— 
% of total loans0.21 %0.23 %
The following tables break down loan delinquencies by loan portfolio segment and class.
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 
   Construction - Speculative1,423,891 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 %
September 30, 2021Days Delinquent Based on $ Amount of Loans% based
on $
Loan typeLoans Receivable (Amortized Cost)Current306090Total Past Due
($ in thousands)
Commercial loans
   Multi-Family$2,273,689 $2,273,214 $— $— $475 $475 0.02 %
   Commercial Real Estate2,429,332 2,428,014 971 64 283 1,318 0.05 
   Commercial & Industrial2,303,927 2,303,605 — — 322 322 0.01 
   Construction - Speculative1,117,227 1,117,186 — — 41 41 — 
   Land - Acquisition & Development192,416 190,076 — — 2,340 2,340 1.22 
Total commercial loans8,316,591 8,312,095 971 64 3,461 4,496 0.05 
Consumer loans
   Single-Family Residential4,937,064 4,915,749 3,627 2,165 15,523 21,315 0.43 
   Construction - Custom347,752 347,752 — — — — — 
   Land - Consumer Lot Loans148,534 147,952 5 307 270 582 0.39 
   HELOC166,940 166,627 47 — 266 313 0.19 
   Consumer87,989 87,727 152 59 51 262 0.30 
Total consumer loans5,688,279 5,665,807 3,831 2,531 16,110 22,472 0.40 
Total Loans$14,004,870 $13,977,902 $4,802 $2,595 $19,571 $26,968 0.19 %
Delinquency %99.81 %0.03 %0.02 %0.14 %0.19 %

The Company has actively worked with its borrowers to modify consumer mortgage and commercial loans to provide payment deferrals as a result of the COVID-19 pandemic. The terms of the payment deferrals are generally 90 days for consumer mortgage loans and up to 180 days for commercial loans, and borrowers may be eligible for multiple deferrals. Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) passed by Congress, these loan modifications are not accounted for as TDRs. In total, 1,472 consumer loans and 221 commercial loans were approved for deferrals. As of September 30, 2022, 1 mortgage loan
totaling $64,000 and no commercial loans that had been modified remain in deferral. These loans are not considered past due until after the deferral period is over and scheduled payments have resumed.
The Company participated in the Small Business Administration’s Paycheck Protection Program. This program came about through the CARES Act to help small businesses keep their employees employed through the COVID-19 shelter in place orders. The Company assisted over 9,000 businesses with approximately $1,085,000,000 in PPP loan originations. As of September 30, 2022, approximately 8,800 PPP loans totaling $1,075,000,000 have been forgiven by the SBA and we continued to hold PPP loans receivable with an amortized cost of $10,141,000.
Most 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, 2022, the outstanding balance of TDRs was $56,817,000 as compared to $65,128,000 as of September 30, 2021. As of September 30, 2022, 98.3% of the restructured loans were performing. Single-family residential loans comprised 82.5% of TDRs as of September 30, 2022. 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, 2022 and September 30, 2021.

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 
September 30, 2021Term Loans Amortized Cost Basis by Origination Year
(In thousands)20212020201920182017Prior to 2017Revolving LoansRevolving to Term LoansTotal Loans
Commercial loans
Multi-family
Pass$796,231 $479,038 $220,483 $205,661 $217,203 $287,595 $46,184 $— $2,252,395 
Special Mention— 1,763 — 3,111 — — — — 4,874 
Substandard— — 7,548 651 3,703 4,518 — — 16,420 
Total$796,231 $480,801 $228,031 $209,423 $220,906 $292,113 $46,184 $— $2,273,689 
Commercial real estate
Pass$650,457 $434,117 $270,174 $260,344 $216,564 $339,374 $3,109 $247 $2,174,386 
Special Mention— — 4,419 32,931 — 20,275 — — 57,625 
Substandard— 8,362 71,972 17,290 46,800 51,800 1,097 — 197,321 
Total$650,457 $442,479 $346,565 $310,565 $263,364 $411,449 $4,206 $247 $2,429,332 
Commercial & industrial
Pass$687,597 $224,225 $50,054 $38,595 $75,674 $155,171 $864,669 $12,167 $2,108,152 
Special Mention5,947 3,287 6,302 — — — 32,588 — 48,124 
Substandard71 46,695 2,690 4,589 37 17,093 76,217 259 147,651 
Total$693,615 $274,207 $59,046 $43,184 $75,711 $172,264 $973,474 $12,426 $2,303,927 
Construction
Pass$402,578 $362,799 $214,189 $44,257 $15,656 $— $76,312 $— $1,115,791 
Special Mention931 — — — — — — — 931 
Substandard— 464 — — 41 — — — 505 
Total$403,509 $363,263 $214,189 $44,257 $15,697 $— $76,312 $— $1,117,227 
Land - acquisition & development
Pass$89,770 $37,773 $14,070 $15,835 $13,635 $16,393 $2,600 $— $190,076 
Substandard— — — — 2,340 — — — 2,340 
Total$89,770 $37,773 $14,070 $15,835 $15,975 $16,393 $2,600 $— $192,416 
Total commercial loans
Pass$2,626,633 $1,537,952 $768,970 $564,692 $538,732 $798,533 $992,874 $12,414 $7,840,800 
Special Mention6,878 5,050 10,721 36,042 — 20,275 32,588 — 111,554 
Substandard71 55,521 82,210 22,530 52,921 73,411 77,314 259 364,237 
Total$2,633,582 $1,598,523 $861,901 $623,264 $591,653 $892,219 $1,102,776 $12,673 $8,316,591 
September 30, 2021Term Loans Amortized Cost Basis by Origination Year
(In thousands)20212020201920182017Prior to 2017Revolving LoansRevolving to Term LoansTotal Loans
Consumer loans
Single-family residential
Current$1,309,354 $824,827 $413,564 $352,070 $395,569 $1,620,365 $— $— $4,915,749 
30 days past due3 — 349 59 391 2,825 — — 3,627 
60 days past due— — — — — 2,165 — — 2,165 
90+ days past due— — — 115 169 15,239 — — 15,523 
Total$1,309,357 $824,827 $413,913 $352,244 $396,129 $1,640,594 $— $— $4,937,064 
Construction - custom
Current$204,614 $139,175 $2,854 $1,109 $— $— $— $— $347,752 
Total$204,614 $139,175 $2,854 $1,109 $— $— $— $— $347,752 
Land - consumer lot loans
Current$85,342 $28,415 $9,012 $4,454 $5,404 $15,325 $— $— $147,952 
30 days past due— — — — — 5 — — 5 
60 days past due— 142 — — — 165 — — 307 
90+ days past due— — — — 116 154 — — 270 
Total$85,342 $28,557 $9,012 $4,454 $5,520 $15,649 $— $— $148,534 
HELOC
Current$— $— $— $— $— $4,764 $160,183 $1,680 $166,627 
30 days past due— — — — — 31 16 — 47 
90+ days past due— — — — — 30 236 — 266 
Total$— $— $— $— $— $4,825 $160,435 $1,680 $166,940 
Consumer
Current$12,091 $8,091 $606 $35,228 $36 $10,700 $20,975 $— $87,727 
30 days past due— — 13 — 54 82 3 — 152 
60 days past due— — 4 — — 55 — — 59 
90+ days past due— — 35 — — 16 — — 51 
Total$12,091 $8,091 $658 $35,228 $90 $10,853 $20,978 $— $87,989 
Total consumer loans
Current$1,611,401 $1,000,508 $426,036 $392,861 $401,009 $1,651,154 $181,158 $1,680 $5,665,807 
30 days past due3 — 362 59 445 2,943 19 — 3,831 
60 days past due— 142 4 — — 2,385 — — 2,531 
90+ days past due— — 35 115 285 15,439 236 — 16,110 
Total$1,611,404 $1,000,650 $426,437 $393,035 $401,739 $1,671,921 $181,413 $1,680 $5,688,279