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Allowance for Loan Losses
 12 Months Ended
Sep. 30, 2024
Receivables [Abstract]  
Allowance for Loan Losses ALLOWANCE FOR LOAN LOSSES
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.  

Twelve Months Ended September 30, 2024Beginning
Allowance		Charge-offsRecoveries
Provision &
Transfers1
Ending Allowance
 (In thousands)
Commercial loans
   Multi-family$13,155 $— $— $12,093 $25,248 
   Commercial real estate28,842 (203)4 10,567 39,210 
   Commercial & industrial58,773 (2,611)1,069 1,517 58,748 
   Construction29,408 — — (7,141)22,267 
 Land - acquisition & development7,016 (149)105 928 7,900 
      Total commercial loans137,194 (2,963)1,178 17,964 153,373 
Consumer loans
   Single-family residential28,029 (144)381 12,257 40,523 
   Construction - custom2,781 — 1 (1,355)1,427 
   Land - consumer lot loans3,512 — 58 (1,006)2,564 
   HELOC2,859 — 4 186 3,049 
   Consumer2,832 (518)647 (144)2,817 
      Total consumer loans40,013 (662)1,091 9,938 50,380 
$177,207 $(3,625)$2,269 $27,902 $203,753 
1Provision & transfer amounts within the table include the $16,000,000 initial provision related to non-PCD loans acquired during the year and the $7,403,000 PCD ACL amount included in the Merger purchase price allocation but do not reflect a provision recapture from unfunded commitments of $3,000,000.
Twelve Months Ended September 30, 2023Beginning AllowanceCharge-offsRecoveriesProvision &
Transfers		Ending Allowance
(In thousands)
Commercial loans
   Multi-family$12,013 $— $— $1,142 $13,155 
   Commercial real estate25,814 — 103 2,925 $28,842 
   Commercial & industrial57,210 (45,856)93 47,326 $58,773 
   Construction26,161 — — 3,247 $29,408 
   Land - acquisition & development12,278 — 78 (5,340)$7,016 
      Total commercial loans133,476 (45,856)274 49,300 137,194 
Consumer loans
   Single-family residential25,518 (34)568 1,977 28,029 
   Construction - custom3,410 — — (629)2,781 
   Land - consumer lot loans5,047 — 23 (1,558)3,512 
   HELOC2,482 — 2 375 2,859 
   Consumer2,875 (580)502 35 2,832 
      Total consumer loans39,332 (614)1,095 200 40,013 
$172,808 $(46,470)$1,369 $49,500 $177,207 
1Provision & transfer amounts within the table do not reflect a provision recapture from unfunded commitments of $8,000,000.

The Company recorded a provision for credit losses of $17,500,000 in 2024, compared to a provision of $41,500,000 for 2023. In 2024, the provision included the initial reserves for acquired non-PCD loans. The increase in the overall ACL in 2024 was a combination of the provision recorded and the reserve for LBC PCD loans booked in purchase accounting. For the year ended September 30, 2024, net charge-offs were $1,356,000, compared to $45,101,000 in the prior year. A loan is charged-off when the loss is estimable and it is confirmed that the borrower is not expected to be able to meet its contractual obligations.

Non-accrual loans increased to $69,541,000 as of September 30, 2024, from $50,422,000 as of September 30, 2023. Non-performing assets totaled $77,418,000, or 0.28% of total assets, at September 30, 2024, compared to $57,924,000, or 0.26% of total assets, as of September 30, 2023.

As of September 30, 2024, the allowance for loan losses of $203,753,000 is for loans that are evaluated on a pooled basis, which was comprised of $144,848,000 related to the quantitative component and $58,905,000 related to management's qualitative overlays (including the forecast component of the reserve).
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." 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.

The following tables provide the amortized cost of loans receivable based on risk rating categories (as previously defined).
September 30, 2024Internally Assigned Grade
 PassSpecial mentionSubstandardDoubtfulLossTotal
 (In thousands)
Loan type
Commercial loans
   Multi-family$4,476,283 $12,377 $67,540 $— $— $4,556,200 
   Commercial real estate3,587,682 40,297 104,176 — — 3,732,155 
   Commercial & industrial2,107,780 21,264 203,688 — — 2,332,732 
   Construction1,392,332 3,221 28,463 — — 1,424,016 
   Land - acquisition & development159,919 — 398 — — 160,317 
      Total commercial loans11,723,996 77,159 404,265 — — 12,205,420 
Consumer loans
   Single-family residential8,258,812 — 21,488 — — 8,280,300 
   Construction - custom181,567 — 848 — — 182,415 
   Land - consumer lot loans108,060 — — — — 108,060 
   HELOC269,261 — 596 — — 269,857 
   Consumer73,824 — 231 — — 74,055 
      Total consumer loans8,891,524 — 23,163 — — 8,914,687 
Total loans$20,615,520 $77,159 $427,428 $— $— $21,120,107 
Total grade as a % of total loans97.6 %0.4 %2.0 %— %— %

September 30, 2023Internally Assigned Grade
 PassSpecial mentionSubstandardDoubtfulLossTotal Gross Loans
 (In thousands)
Loan type
Commercial loans
   Multi-family$2,772,538 $90,428 $23,628 $— $— $2,886,594 
   Commercial real estate3,207,596 4,847 97,658 — — 3,310,101 
   Commercial & industrial2,164,876 6,647 143,795 — — 2,315,318 
   Construction1,818,266 — 20,670 — — 1,838,936 
   Land - acquisition & development156,390 — 271 — — 156,661 
      Total commercial loans10,119,666 101,922 286,022 — — 10,507,610 
Consumer loans
   Single-family residential6,370,936 — 18,054 — — 6,388,990 
   Construction - custom324,363 — 88 — — 324,451 
   Land - consumer lot loans124,588 — 254 — — 124,842 
   HELOC237,018 — 736 — — 237,754 
   Consumer70,098 — 12 — — 70,110 
      Total consumer loans7,127,003 — 19,144 — — 7,146,147 
Total gross loans$17,246,669 $101,922 $305,166 $— $— $17,653,757 
Total grade as a % of total gross loans97.7 %0.6 %1.7 %— %— %
The following tables provide information on amortized cost of loans receivable based on borrower payment activity.
 
September 30, 2024Performing LoansNon-Performing Loans
 Amount% of Total LoansAmount% of Total Loans
 (In thousands)(In thousands)
Commercial loans
   Multi-family$4,537,457 99.6 %$18,743 0.4 %
   Commercial real estate3,705,793 99.3 26,362 0.7 
   Commercial & industrial2,332,732 100.0 — — 
   Construction1,422,896 99.9 1,120 0.1 
   Land - acquisition & development160,243 100.0 74 — 
      Total commercial loans12,159,121 99.6 46,299 0.4 
Consumer loans
   Single-family residential8,258,812 99.7 21,488 0.3 
   Construction - custom181,567 99.5 848 0.5 
   Land - consumer lot loans108,060 100.0 — — 
   HELOC269,261 99.8 596 0.2 
   Consumer73,745 99.6 310 0.4 
      Total consumer loans8,891,445 99.7 23,242 0.3 
Total$21,050,566 99.7 %$69,541 0.3 %

September 30, 2023Performing LoansNon-Performing Loans
 Amount% of Total LoansAmount% of Total Loans
 (In thousands)(In thousands)
Commercial loans
   Multi-family$2,881,467 99.8 %$5,127 0.2 %
   Commercial real estate3,286,666 99.3 23,435 0.7 
   Commercial & industrial2,309,236 99.7 6,082 0.3 
   Construction1,838,936 100.0 — — 
   Land - acquisition & development156,661 100.0 — — 
      Total commercial loans10,472,966 99.7 34,644 0.3 
Consumer loans
   Single-family residential6,374,072 99.8 14,918 0.2 
   Construction - custom324,363 100.0 88 — 
   Land - consumer lot loans124,833 100.0 9 — 
   HELOC237,018 99.7 736 0.3 
   Consumer70,083 100.0 27 — 
      Total consumer loans7,130,369 99.8 15,778 0.2 
Total gross loans$17,603,335 99.7 %$50,422 0.3 %