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Allowance for Losses on Loans
 3 Months Ended
Dec. 31, 2021
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, 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.
Three Months Ended December 31, 2020Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers (1)
Ending Allowance
 (In thousands)
Commercial loans
   Multi-family$13,853 $— $— $510 $14,363 
   Commercial real estate22,516 — 789 191 23,496 
   Commercial & industrial38,665 (2)50 5,604 44,317 
   Construction24,156 — — 2,209 26,365 
   Land - acquisition & development10,733 — 35 (102)10,666 
      Total commercial loans109,923 (2)874 8,412 119,207 
Consumer loans
   Single-family residential45,186 — 779 (7,352)38,613 
   Construction - custom3,555 — — 39 3,594 
   Land - consumer lot loans2,729 — 7 222 2,958 
   HELOC2,571 — — (209)2,362 
   Consumer2,991 (150)226 388 3,455 
      Total consumer loans57,032 (150)1,012 (6,912)50,982 
Total loans$166,955 $(152)$1,886 $1,500 $170,189 
(1) Provision & transfer amounts within the table do not include the provision for unfunded commitments of $1,500,000.
The Company recorded a $500,000 provision for credit losses for the three months ended December 31, 2021, compared with a provision for credit losses of $3,000,000 for the three months ended December 31, 2020. The provision in the three months ended December 31, 2021 was primarily due to growth in loans receivable and unfunded commitments 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, 2020 was primarily due to reserving for growth in loans receivable and changes in composition of the loan portfolio. Recoveries, net of charge-offs, totaled $2,111,000 for the three months ended December 31, 2021, compared to net recoveries of $1,734,000 during the three months ended December 31, 2020. No allowance was recorded as of December 31, 2021 or as of September 30, 2021 for the $198,947,000 and $305,162,000 of PPP loans in the portfolio on each date, respectively, which are included in the commercial & industrial loan category, due to the government guarantee.

Non-performing assets were $54,790,000, or 0.27% of total assets, at December 31, 2021, compared to $43,625,000, or 0.22% of total assets, at September 30, 2021. Non-accrual loans were $44,959,000 at December 31, 2021, compared to $31,749,000 at September 30, 2021. Delinquencies, as a percent of total loans, were 0.31% at December 31, 2021, compared to 0.19% at September 30, 2021.

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, 2021Internally Assigned Grade
 PassSpecial mentionSubstandardDoubtfulLossTotal
 (In thousands, except ratio data)
Loan type
Commercial loans
  Multi-family$2,270,465 $4,852 $2,899 $— $— $2,278,216 
  Commercial real estate2,489,064 58,049 120,057 — — 2,667,170 
  Commercial & industrial2,160,147 60,762 144,578 — — 2,365,487 
  Construction1,233,943 566 610 — — 1,235,119 
  Land - acquisition & development199,741 — 2,340 — — 202,081 
    Total commercial loans8,353,360 124,229 270,484 — — 8,748,073 
Consumer loans
  Single-family residential5,265,363 — 21,196 — — 5,286,559 
  Construction - custom333,118 — 465 — — 333,583 
  Land - consumer lot loans149,225 — 620 — — 149,845 
  HELOC167,513 — 276 — — 167,789 
  Consumer77,752 1 11 — — 77,764 
    Total consumer loans5,992,971 1 22,568 — — 6,015,540 
Total$14,346,331 $124,230 $293,052 $— $— $14,763,613 
Total grade as a % of total loans97.17 %0.84 %1.99 %— %— %
September 30, 2021Internally Assigned Grade
 PassSpecial mentionSubstandardDoubtfulLossTotal Gross Loans
 (In thousands, except ratio data)
Loan type
Commercial loans
  Multi-family$2,252,395 $4,874 $16,420 $— $— $2,273,689 
  Commercial real estate2,174,386 57,625 197,321 — — 2,429,332 
  Commercial & industrial2,108,152 48,124 147,651 — — 2,303,927 
  Construction1,115,791 931 505 — — 1,117,227 
  Land - acquisition & development190,076 — 2,340 — — 192,416 
    Total commercial loans7,840,800 111,554 364,237 — — 8,316,591 
Consumer loans
  Single-family residential4,915,106 — 21,958 — — 4,937,064 
  Construction - custom347,752 — — — — 347,752 
  Land - consumer lot loans148,010 — 524 — — 148,534 
  HELOC166,652 — 288 — — 166,940 
  Consumer87,962 — 27 — — 87,989 
    Total consumer loans5,665,482 — 22,797 — — 5,688,279 
Total loans$13,506,282 $111,554 $387,034 $— $— $14,004,870 
Total grade as a % of total gross loans96.44 %0.80 %2.76 %— %— %
The following tables provide information on amortized cost of loans receivable based on borrower payment activity.

December 31, 2021Performing LoansNon-Performing Loans
 Amount% of Total
Loans		Amount% of Total
Loans
 (In thousands, except ratio data)
Commercial loans
   Multi-family$2,278,216 100.0 %$— — %
   Commercial real estate2,659,605 99.7 7,565 0.3 
   Commercial & industrial2,350,138 99.4 15,349 0.6 
   Construction1,234,508 100.0 611 0.0 
   Land - acquisition & development199,741 98.8 2,340 1.2 
      Total commercial loans8,722,208 99.7 25,865 0.3 
Consumer loans
   Single-family residential5,268,808 99.7 17,751 0.3 
   Construction - custom333,118 99.9 465 0.1 
   Land - consumer lot loans149,301 99.6 544 0.4 
   HELOC167,513 99.8 276 0.2 
   Consumer77,706 99.9 58 0.1 
      Total consumer loans5,996,446 99.7 19,094 0.3 
Total loans$14,718,654 99.7 %$44,959 0.3 %
September 30, 2021Performing LoansNon-Performing Loans
 Amount% of Total
Loans		Amount% of Total
Loans
 (In thousands, except ratio data)
Commercial loans
   Multi-family$2,273,214 100.0 %$475 — %
   Commercial real estate2,421,294 99.7 8,038 0.3 
   Commercial & industrial2,303,562 100.0 365 — 
   Construction1,116,722 100.0 505 — 
   Land - acquisition & development190,076 98.8 2,340 1.2 
      Total commercial loans8,304,868 99.9 11,723 0.1 
Consumer loans
   Single-family residential4,917,744 99.6 19,320 0.4 
   Construction - custom347,752 100.0 — — 
   Land - consumer lot loans148,175 99.8 359 0.2 
   HELOC166,653 99.8 287 0.2 
   Consumer87,929 99.9 60 0.1 
      Total consumer loans5,668,253 99.6 20,026 0.4 
Total loans$13,973,121 99.8 %$31,749 0.2 %