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INCOME TAXES
 12 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Under generally accepted accounting principles, the Company uses the asset and liability method of accounting for income
taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis.
Deferred tax assets and liabilities are measured using enacted tax rates applicable to taxable income in the years in which those
temporary differences are expected to reverse.
The table below provides a summary of the Company's tax assets and liabilities, including deferred tax assets and deferred tax
liabilities by major source. Deferred tax balances represent temporary differences between the financial statement and
corresponding tax treatment of income, gains, losses, deductions or credits. With the completion of the Merger in 2024, the
deferred tax amounts now include a number of deferred tax items carried over from LBC, as well as new deferred tax items
created as a consequence of the purchase accounting process and post-merger asset sales.  In particular, deferred tax assets now
include significant new items for loan purchase discount and loss carryover.
September 30, 2025
September 30, 2024
 
(In thousands)
Deferred tax assets
Allowance for credit losses
$52,275
$53,227
Non-accrual loan interest
4,752
3,124
Accrued bonus and deferred compensation
7,497
7,815
Stock based compensation
3,552
4,696
Lease liability
12,314
9,626
Loan purchase discount
42,273
48,064
Loss carryover
62,413
68,483
Other
1,289
2,219
Total deferred tax assets
186,365
197,254
Deferred tax liabilities
FHLB stock dividends
5,932
6,171
Net unrealized gain on available-for-sale securities and cash flow hedges
14,097
13,758
Loan origination fees and costs
11,475
11,777
Premises and equipment
16,637
16,390
Lease right-of-use assets
11,337
9,304
Equity investments
3,444
3,700
Acquired intangibles
11,598
12,824
Other
184
184
Total deferred tax liabilities
74,704
74,108
Net deferred tax asset (liability)
111,661
123,146
Current tax asset (liability)
1,123
(3,898)
Net tax asset (liability)
$112,784
$119,248
At the end of the fiscal year, the Company had about $264 million of ordinary tax loss to be carried to future years.  The loss
carryover amount is primarily attributable to the tax loss realized from the portfolio loan sale following the Luther Burbank
merger.  Because of the annual loss limitation rules under Section 382 of the Internal Revenue Code, it will take another 15
years (or until the end of fiscal 2040) for the Company to utilize all that loss carryover against its future taxable income. 
However, there is no applicable time limit in this case, and therefore Company does not anticipate any expiration of the loss
carryover amount.
In its deferred tax assets at the end of the fiscal year, the Company also has about $0.6 million of remaining Oregon tax credits
that the Company previously purchased as part of its community investments to support Oregon farmworkers housing.  That
remaining Oregon tax credit will be fully utilized under an installment schedule by the end of the next fiscal year.
The table below presents a reconciliation of the statutory federal income tax rate to the Company's effective income tax rate.
Year ended September 30,
2025
2024
2023
Statutory income tax rate
21.0%
21.0%
21.0%
State income tax
2.3
2.3
1.7
Tax-exempt interest income
(1.7)
(2.1)
(1.2)
Interest expense disallowance
0.9
1.2
0.5
Low-income housing investments
(1.1)
(1.1)
(1.3)
Other differences
0.6
0.6
0.1
Effective income tax rate
22.0%
21.9%
20.8%
The following table summarizes the Company's income tax expense (benefit) for the respective periods.
Year ended September 30,
2025
2024
2023
(In thousands)
Federal:
Current
$45,850
$54,817
$58,667
Deferred
11,115
(4,767)
3,334
56,965
50,050
62,001
State:
  Current
6,578
7,837
4,425
  Deferred
31
(1,872)
1,224
6,609
5,965
5,649
Total
  Current
52,428
62,654
63,092
  Deferred
11,146
(6,639)
4,558
$63,574
$56,015
$67,650
The Company does not have a liability for uncertain tax positions as of September 30, 2025 or September 30, 2024. 
The Company's federal income tax returns are open and subject to potential examination by the IRS for fiscal years 2022 and
later. State income tax returns are generally subject to examination for a period of three to five years after filing. The state
impact of any federal changes remains subject to examination by various states for a period of up to two years after formal
notification to the states. 
As described above in Note N, the Company has LIHTC investments which are designed to promote qualified affordable
housing projects. We account for our portfolio of LHITC investments under the proportional amortization method of ASU
2023-2.  The tax benefits from pass-through tax credits and losses from our LIHTC investments are included in our estimate of
income tax liability for the year, and therefore reflected in the Income Tax Expense line of the income statement.  The
amortization expense of the LIHTC investments is a component of our income tax expense and therefore also reflected in the
Income Tax Expense line. 
The table below shows the total amounts of tax benefits and the amortization amounts from our LIHTC portfolio that are
recognized in our income tax expense for the fiscal years ended September 30, 2025 and September 30, 2024.
2025
2024
(In thousands)
LIHTC tax benefits as of September 30,
$19,135
$19,156
LIHTC amortization expense for the year ended September 30,
16,093
16,434