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Loans Receivable
 12 Months Ended
Sep. 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.
 September 30, 2024September 30, 2023
 ($ in thousands)($ in thousands)
Gross loans by category
Commercial loans
   Multi-family$4,658,119 20.8 %$2,907,086 14.8 %
   Commercial real estate3,757,040 16.8 3,344,959 17.0 
   Commercial & industrial
2,337,139 10.4 2,321,717 11.8 
   Construction2,174,254 9.7 3,318,994 16.9 
   Land - acquisition & development200,713 1.0 201,538 1.0 
 Total commercial loans13,127,265 58.7 12,094,294 61.6 
Consumer loans
 Single-family residential8,399,030 37.6 6,451,270 32.8 
 Construction - custom384,161 1.7 672,643 3.4 
 Land - consumer lot loans108,791 0.5 125,723 0.6 
   HELOC266,151 1.2 234,410 1.2 
   Consumer73,998 0.3 70,164 0.4 
 Total consumer loans9,232,131 41.3 7,554,210 38.4 
Total gross loans22,359,396 100 %19,648,504 100 %
   Less:
      Allowance for loan losses203,753 177,207 
      Loans in process1,009,798 1,895,940 
      Net deferred fees, costs and discounts229,491 98,807 
Total loan contra accounts1,443,042 2,171,954 
Net loans$20,916,354 $17,476,550 


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, 2024 and September 30, 2023, AIR for loans totaled $92,362,000 and $77,349,000, 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 $16,957,014,000 and $8,941,201,000 at September 30, 2024 and September 30, 2023, respectively, 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 summary breaks down the Company's fixed rate and adjustable rate loans by time to maturity or to rate adjustment. The table below does not account for fixed rate loans that are swapped to floating using derivatives. 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, 2024
Fixed-RateAdjustable-Rate
Term To MaturityLoans% of LoansTerm To Rate AdjustmentLoans% of Loans
 (In thousands) (In thousands)
Within 1 year$179,267 0.8 %Less than 1 year$6,218,630 29.4 %
1 to 3 years1,215,170 5.8 1 to 3 years2,101,732 10.0 
3 to 5 years764,056 3.6 3 to 5 years1,148,969 5.4 
5 to 10 years2,582,522 12.2 5 to 10 years306,485 1.5 
10 to 20 years503,677 2.4 10 to 20 years311 — 
Over 20 years6,096,168 28.9 Over 20 years3,120 — 
$11,340,860 53.7 %$9,779,247 46.3 %


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 $98,271,000 and $134,860,000 at September 30, 2024 and 2023, respectively. As of September 30, 2024, 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, 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$18,743 $— $— $5,127 $— $— 
Commercial real estate26,362 — — 23,435 — — 
Commercial & industrial— — 1,083 6,082 — — 
Construction1,120 — — — — — 
Land - acquisition & development74 — — — — — 
   Total commercial loans46,299 — 1,083 34,644 — — 
Consumer loans
Single-family residential21,488 — — 14,918 — — 
Construction - custom848 — — 88 — — 
Land - consumer lot loans— — — 9 — — 
HELOC596 — — 736 — — 
Consumer310 — — 27 — — 
   Total consumer loans23,242 — — 15,778 — — 
Total loans$69,541 $— $1,083 $50,422 $— $— 
% of total loans0.33 %0.29 %
The following tables break down loan delinquencies by loan portfolio segment and class.
September 30, 2024Days Delinquent Based on $ Amount of Loans% based
on $
Loan typeLoans Receivable (Amortized Cost)Current306090Total Past Due
($ in thousands)
Commercial loans
   Multi-Family$4,556,200 $4,541,527 $— $4,890 $9,783 $14,673 0.32 %
   Commercial Real Estate3,732,155 3,731,494 89 — 572 661 0.02 
   Commercial & Industrial2,332,732 2,330,686 — 1,023 1,023 2,046 0.09 
   Construction1,424,016 1,421,966 930 — 1,120 2,050 0.14 
   Land - Acquisition & Development160,317 160,243 — — 74 74 0.05 
Total commercial loans12,205,420 12,185,916 1,019 5,913 12,572 19,504 0.16 
Consumer loans
   Single-Family Residential8,280,300 8,250,589 3,927 7,540 18,244 29,711 0.36 
   Construction - Custom182,415 181,567 — — 848 848 0.46 
   Land - Consumer Lot Loans108,060 108,060 — — — — — 
   HELOC269,857 267,347 1,387 577 546 2,510 0.93 
   Consumer74,055 73,290 311 144 310 765 1.03 
Total consumer loans8,914,687 8,880,853 5,625 8,261 19,948 33,834 0.38 
Total Loans$21,120,107 $21,066,769 $6,644 $14,174 $32,520 $53,338 0.25 %
Delinquency %99.75 %0.03 %0.07 %0.15 %0.25 %
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 %

Loans are considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. The following table presents the amortized basis of collateral-dependent loans by loan class and collateral type as of September 30, 2024.
Loan typeResidential Real EstateCommercial Real Estate
($ in thousands)
Commercial loans
Multi-Family$— $18,641 
Commercial Real Estate— 32,790 
Commercial & Industrial— — 
Construction1,120 — 
Land - Acquisition & Development74 — 
Total commercial loans1,194 51,431 
Consumer loans
Single-Family Residential5,678 — 
Construction - Custom88 — 
Land - Consumer Lot Loans— — 
HELOC197 — 
Consumer— — 
Total consumer loans5,963 — 
Total Loans$7,157 $51,431 


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.

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 year were term extensions.

Twelve Months Ended September 30, 2024
Term Extension
% of Total Loan Class Balance
Wtd. Avg.
Term Extension
Commercial loans
( in thousands)
(in months)
Commercial real estate
$23,449 0.63 %36
Commercial & industrial
61,074 2.62 4
Construction
19,087 1.34 12
Total commercial loans
103,610 0.85 
 
Consumer loans
Single-family residential
882 0.01 6
Total consumer loans
882 0.01 
Total Loans
$104,492 0.49 %13
The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts. The following table presents the performance of such loans that have been modified for the twelve months ended September 30, 2024.


September 30, 2024Days Delinquent
Loan typeCurrent306090Total
Commercial loans
Commercial real estate
$23,449 $— $— $— $23,449 
Commercial & industrial
58,999 — 992 1,083 61,074 
Construction
19,087 — — — 19,087 
Total commercial loans
101,535 — 992 1,083 103,610 
Consumer loans
Single-family residential
882 — — — 882 
Total consumer loans
882 — — — 882 
Total Loans
$102,417 $— $992 $1,083 $104,492 


None of the loans modified in the twelve months ended September 30, 2024 defaulted after modification.

We evaluate the credit quality of our commercial loans based on regulatory risk ratings and also consider other factors. It is important to note, just because a loan is risk-rated below a "pass" rating, it does not necessarily indicate there will be future charge-offs on that loan. Loans are downgraded because of either borrower specific or industry-wide financial or operating stresses. 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, 2024 and September 30, 2023.

September 30, 2024Term Loans Amortized Cost Basis by Origination Year
(In thousands)20242023202220212020Prior to 2020Revolving LoansRevolving to Term LoansTotal Loans
Commercial loans
Multi-family
Pass$62,038 $198,790 $1,645,460 $1,203,005 $577,037 $716,573 $56,627 $16,753 $4,476,283 
Special Mention— — 1,698 2,655 2,572 5,452 — — 12,377 
Substandard— — 13,566 5,850 7,059 41,065 — — 67,540 
Total$62,038 $198,790 $1,660,724 $1,211,510 $586,668 $763,090 $56,627 $16,753 $4,556,200 
Commercial real estate
Pass$216,520 $252,923 $1,086,200 $723,600 $475,313 $797,877 $35,249 $— $3,587,682 
Special Mention— — — 22,216 8,682 9,399 — — 40,297 
Substandard— — 8,686 2,260 25,319 67,911 — — 104,176 
Total$216,520 $252,923 $1,094,886 $748,076 $509,314 $875,187 $35,249 $— $3,732,155 
Gross Charge-offs— — — — — 203 — — 203 
Commercial & industrial
Pass$42,232 $148,059 $231,215 $282,148 $89,219 $156,666 $1,116,283 $41,957 $2,107,779 
Special Mention— — — — — — 21,264 — 21,264 
Substandard2,142 19,818 35,717 2,284 13,227 44,870 85,627 4 203,689 
Total$44,374 $167,877 $266,932 $284,432 $102,446 $201,536 $1,223,174 $41,961 $2,332,732 
Gross Charge-offs175 42 10 15 — 7 2,331 31 2,611 
Construction
Pass$146,154 $421,334 $532,310 $233,200 $— $— $59,334 $— $1,392,332 
Special Mention— — — 3,221 — — — — 3,221 
Substandard82 8,622 6,060 13,699 — — — — 28,463 
Total$146,236 $429,956 $538,370 $250,120 $— $— $59,334 $— $1,424,016 
Land - acquisition & development
Pass$23,475 $12,976 $56,292 $46,635 $2,774 $17,768 $— $— $159,920 
Substandard— — — — 74 323 — — 397 
Total$23,475 $12,976 $56,292 $46,635 $2,848 $18,091 $— $— $160,317 
Gross Charge-offs— — — — — 149 — — 149 
Total commercial loans
Pass$490,419 $1,034,082 $3,551,477 $2,488,588 $1,144,343 $1,688,884 $1,267,493 $58,710 $11,723,996 
Special Mention— — 1,698 28,092 11,254 14,851 21,264 — 77,159 
Substandard2,224 28,440 64,029 24,093 45,679 154,169 85,627 4 404,265 
Total$492,643 $1,062,522 $3,617,204 $2,540,773 $1,201,276 $1,857,904 $1,374,384 $58,714 $12,205,420 
Gross Charge-offs$175 $42 $10 $15 $— $359 $2,331 $31 $2,963 
September 30, 2024Term Loans Amortized Cost Basis by Origination Year
(In thousands)20242023202220212020Prior to 2020Revolving LoansRevolving to Term LoansTotal Loans
Consumer loans
Single-family residential
Current$384,516 $765,673 $2,285,996 $2,061,359 $797,586 $1,955,459 $— $— $8,250,589 
30 days past due— — 375 — 1,063 2,489 — — 3,927 
60 days past due— 3,237 — 1,199 662 2,442 — — 7,540 
90+ days past due— 820 3,454 1,339 1,027 11,604 — — 18,244 
Total$384,516 $769,730 $2,289,825 $2,063,897 $800,338 $1,971,994 $— $— $8,280,300 
Gross Charge-offs— — 13 — — 131 — — 144 
Construction - custom
Current$54,649 $108,941 $17,082 $537 $— $358 $— $— $181,567 
90+ days past due— — 848 — — — — — 848 
Total$54,649 $108,941 $17,930 $537 $— $358 $— $— $182,415 
Land - consumer lot loans
Current$19,672 $14,809 $26,839 $23,804 $9,223 $13,713 $— $— $108,060 
Total$19,672 $14,809 $26,839 $23,804 $9,223 $13,713 $— $— $108,060 
HELOC
Current$— $— $— $— $— $4,176 $262,055 $1,116 $267,347 
30 days past due— — — — — 216 1,171 — 1,387 
60 days past due— — — — — 392 185 — 577 
90+ days past due— — — — — 8 538 — 546 
Total$— $— $— $— $— $4,792 $263,949 $1,116 $269,857 
Consumer
Current$1,515 $33 $(19)$9,440 $8,000 $18,329 $35,992 $— $73,290 
30 days past due— — — — — 92 219 — 311 
60 days past due— — — — — — 144 — 144 
90+ days past due— — — — — 91 219 — 310 
Total$1,515 $33 $(19)$9,440 $8,000 $18,512 $36,574 $— $74,055 
Gross Charge-offs— — — — — 139 379 — 518 
Total consumer loans
Current$460,352 $889,456 $2,329,898 $2,095,140 $814,809 $1,992,035 $298,047 $1,116 $8,880,853 
30 days past due— — 375 — 1,063 2,797 1,390 — 5,625 
60 days past due— 3,237 — 1,199 662 2,834 329 — 8,261 
90+ days past due— 820 4,302 1,339 1,027 11,703 757 — 19,948 
Total$460,352 $893,513 $2,334,575 $2,097,678 $817,561 $2,009,369 $300,523 $1,116 $8,914,687 
Gross Charge-offs$— $— $13 $— $— $270 $379 $— $662 
September 30, 2023Term Loans Amortized Cost Basis by Origination Year
(In thousands)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
(In thousands)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