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Loans Receivable
 6 Months Ended
Mar. 31, 2025
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.
 March 31, 2025September 30, 2024
Gross loans by category(In thousands)(In thousands)
Commercial loans
Multi-family$4,967,125 22.4 %$4,658,119 20.8 %
Commercial real estate3,665,363 16.5 3,757,040 16.8 
Commercial & industrial2,389,025 10.8 2,337,139 10.4 
Construction1,791,886 8.1 2,174,254 9.7 
Land - acquisition & development178,114 0.8 200,713 1.0 
Total commercial loans12,991,513 58.6 13,127,265 58.7 
Consumer loans
Single-family residential8,401,084 37.9 8,399,030 37.6 
Construction - custom287,461 1.3 384,161 1.7 
   Land - consumer lot loans102,475 0.5 108,791 0.5 
   HELOC284,295 1.3 266,151 1.2 
   Consumer91,899 0.4 73,998 0.3 
Total consumer loans9,167,214 41.4 9,232,131 41.3 
Total gross loans22,158,727 100 %22,359,396 100 %
   Less:
      Allowance for credit losses on loans202,709 203,753 
      Loans in process798,996 1,009,798 
      Net deferred fees, costs and discounts237,021 229,491 
Total loan contra accounts1,238,726 1,443,042 
Net loans$20,920,001 $20,916,354 


The Company elected to exclude accrued interest receivable from the amortized cost basis of loans for disclosure purposes and from the calculations of estimated credit losses. As of March 31, 2025, and September 30, 2024, AIR for loans totaled $90,212,000 and $92,362,000, respectively, and is included in the Interest receivable line item balance on the Company’s consolidated statements of financial condition.

As of March 31, 2025, loans in the amount of $14,164,000 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 table sets forth the amortized cost basis of non-accrual loans and loans 90 days or more past due and accruing.

 
 March 31, 2025September 30, 2024
 (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$10,477 $— $— $18,743 $— $— 
Commercial real estate29,320 — — 26,362 — — 
Commercial & industrial— — — — — 1,083 
Construction— — — 1,120 — — 
Land - acquisition & development— — — 74 — — 
   Total commercial loans39,797 — — 46,299 — 1,083 
Consumer loans
Single-family residential18,734 — — 21,488 — — 
Construction - custom847 — — 848 — — 
Land - consumer lot loans8 — — — — — 
HELOC300 — — 596 — — 
Consumer200 — — 310 — — 
   Total consumer loans20,089 — — 23,242 — — 
Total non-accrual loans$59,886 $— $— $69,541 $— $1,083 
% of total loans0.28 %0.33 %

The Company recognized interest income on non-accrual loans of approximately $1,733,000 in the six months ended March 31, 2025 as a result of the collection of past due amounts. If these loans had been on accrual status and performed according to their original contract terms, the Company would have recognized interest income of approximately $1,776,000 for the six months ended March 31, 2025. Interest cash flows collected on non-accrual loans vary from period to period as those loans are brought current or are paid off.
The following tables provide details regarding loan delinquencies by loan portfolio and class.

 
March 31, 2025Days Delinquent Based on $ Amount of Loans% based
on $
Type of LoanLoans Receivable (Amortized Cost)Current306090Total Delinquent
(In thousands, except ratio data)
Commercial Loans
Multi-family$4,867,340 $4,852,120 $12,068 $— $3,152 $15,220 0.31 %
Commercial real estate3,639,477 3,635,656 942 2,879 — 3,821 0.10 
Commercial & industrial2,384,745 2,384,692 53 — — 53 — 
Construction1,211,336 1,211,336 — — — — — 
Land - acquisition & development136,061 136,061 — — — — — 
   Total commercial loans12,238,959 12,219,865 13,063 2,879 3,152 19,094 0.16 
Consumer Loans
Single-family residential8,264,318 8,230,006 12,099 4,047 18,166 34,312 0.42 
Construction - custom137,501 136,653 — — 848 848 0.62 
Land - consumer lot loans101,784 101,609 168 — 7 175 0.17 
HELOC288,228 285,393 1,820 761 254 2,835 0.98 
Consumer91,920 91,237 277 206 200 683 0.74 
   Total consumer loans8,883,751 8,844,898 14,364 5,014 19,475 38,853 0.44 
Total Loans$21,122,710 $21,064,763 $27,427 $7,893 $22,627 $57,947 0.27 %
Delinquency %99.73%0.13%0.03%0.11%0.27%



September 30, 2024Days Delinquent Based on $ Amount of Loans% based
on $
Type of LoanLoans Receivable (Amortized Cost)Current306090Total Delinquent
(In thousands, except ratio data)
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 $53,338 0.25 %
Delinquency %99.75%0.03%0.07%0.15%0.25%
Loans are considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. The following table presents the amortized basis of collateral-dependent loans by loan class and collateral type as of March 31, 2025.
Loan typeResidential Real EstateCommercial Real Estate
($ in thousands)
Commercial loans
Multi-Family$— $10,477 
Commercial Real Estate— 29,361 
Commercial & Industrial— — 
Construction— — 
Land - Acquisition & Development— — 
Total commercial loans— 39,838 
Consumer loans
Single-Family Residential1,720 — 
Construction - Custom88 — 
Land - Consumer Lot Loans— — 
HELOC212 — 
Consumer— — 
Total consumer loans2,020 — 
Total Loans$2,020 $39,838 

Loans may be modified as the result of borrowers experiencing financial difficulty needing relief from the contractual terms of their loan. Most loan modifications to borrowers experiencing financial difficulty are accruing and performing loans where the borrower has approached the Company about modification due to temporary financial difficulties. Each request for modification is individually evaluated for merit and likelihood of success. Often a term extension is needed in the short term in order to evaluate the need for further corrective action. Payment delays and interest-only payments may also be approved during the modification period. Principal forgiveness is not an available option for restructured loans.
For commercial loans, modifications could be any of the above-listed modification types available or a mix thereof. Modifications to extend the term, lower the payment amount or delay payment are made for the purposes of providing borrowers additional time to return to compliance with the terms of their loans. Renewals of commercial lines to borrowers experiencing financial difficulty are included within the disclosures below though many of these are made in the normal course of business.
For consumer loans, modifications typically consist of minor payment delays or deferrals and may include a modification of the existing contractual rate or extension of the maturity date, or both, when it is determined the borrowers are likely to successfully maintain compliance with these modified loan terms.

The following tables present the amortized basis of loans that were modified to borrowers experiencing financial difficulty during the three and six month periods ending March 31, 2025 by loan class and modification type. All such modifications during the periods presented were term extensions.
Three Months Ended March 31, 2025Six Months Ended March 31, 2025
Loan ClassTerm Extension% of Total Loan Class BalanceWtd. Avg.
Term Extension 		Term Extension% of Total Loan Class BalanceWtd. Avg.
Term Extension
( in thousands)(in months)( in thousands)(in months)
Multi-family$1,098 0.02 %3$1,098 0.02 %3
Commercial real estate5,393 0.15 245,393 0.15 24
Commercial & industrial49,446 2.07 951,306 2.15 9
Total commercial loans55,937 0.46 1057,797 0.47 10
Single-Family Residential— — 0453 0.01 6
Total consumer loans— — 453 0.01 
Total Loans$55,937 0.26 %$58,250 0.28 %

Three Months Ended March 31, 2024Six Months Ended March 31, 2024
Loan ClassTerm Extension% of Total Loan Class BalanceWtd. Avg.
Term Extension 		Term Extension% of Total Loan Class BalanceWtd. Avg.
Term Extension
( in thousands)(in months)( in thousands)(in months)
Commercial real estate— — 093 — 20
Commercial & industrial42,683 1.87 350,730 2.22 3
Construction13,138 0.81 1513,138 0.81 15
Total commercial loans55,821 0.48 663,961 0.55 5
Total Loans$55,821 0.27 %$63,961 0.30 %

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts.
None of the loans modified in the twelve months ended March 31, 2025 were past due or defaulted after modification as of March 31, 2025.

The Company evaluates the credit quality of its loans based on regulatory risk ratings and also considers 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 primary credit quality indicator, loan class, and year of origination, the amortized cost basis of loans receivable as of March 31, 2025 and September 30, 2024. There were no commercial loans classified as Loss as of either date.
March 31, 2025Term Loans Amortized Cost Basis by Origination Year
YTD 20252024202320222021Prior to 2021Revolving LoansRevolving to Term LoansTotal Loans
Commercial loans
Multi-family
Pass$16,598 $91,722 $348,243 $1,658,880 $1,278,564 $1,250,956 $32,629 $— $4,677,592 
Special Mention— — — 51,048 16,775 42,679 — — 110,502 
Substandard— — — 18,633 8,063 50,107 — — 76,803 
Doubtful— — — — — 2,443 — — 2,443 
Total$16,598 $91,722 $348,243 $1,728,561 $1,303,402 $1,346,185 $32,629 $— $4,867,340 
Commercial real estate
Pass$124,989 $236,925 $237,954 $1,109,391 $668,342 $1,093,962 $34,789 $1,237 $3,507,589 
Special Mention— — — — 1,734 4,744 — — 6,478 
Substandard— — — 4,706 46,667 71,158 — — 122,531 
Doubtful— — — — — 2,879 — — 2,879 
Total$124,989 $236,925 $237,954 $1,114,097 $716,743 $1,172,743 $34,789 $1,237 $3,639,477 
Gross Charge-offs— — 163 — 928 3,464 — 4,555 
Commercial & industrial
Pass$134,781 $41,162 $141,293 $193,282 $267,640 $243,814 $1,075,144 $69 $2,097,185 
Special Mention5,770 448 — — 772 90 37,359 — 44,439 
Substandard30,607 2,615 21,534 20,654 1,803 43,592 121,817 499 243,121 
Total$171,158 $44,225 $162,827 $213,936 $270,215 $287,496 $1,234,320 $568 $2,384,745 
Gross Charge-offs202 — 15 — — 327 — 49 593 
Construction
Pass$41,186 $144,454 $305,458 $437,295 $122,353 $— $95,511 $— $1,146,257 
Special Mention— — — 4,194 — — — — 4,194 
Substandard1,847 4,583 13,649 23,561 17,245 — — — 60,885 
Total$43,033 $149,037 $319,107 $465,050 $139,598 $— $95,511 $— $1,211,336 
Land - acquisition & development
Pass$13,932 $20,964 $9,925 $41,600 $36,263 $12,608 $— $— $135,292 
Substandard— 433 45 — — 291 — — 769 
Total$13,932 $21,397 $9,970 $41,600 $36,263 $12,899 $— $— $136,061 
Total commercial loans
Pass$331,486 $535,227 $1,042,873 $3,440,448 $2,373,162 $2,601,340 $1,238,073 $1,306 $11,563,915 
Special Mention5,770 448 — 55,242 19,281 47,513 37,359 — 165,613 
Substandard32,454 7,631 35,228 67,554 73,778 165,148 121,817 499 504,109 
Doubtful— — — — — 5,322 — — 5,322 
Total$369,710 $543,306 $1,078,101 $3,563,244 $2,466,221 $2,819,323 $1,397,249 $1,805 $12,238,959 
Gross Charge-offs$202 $— $178 $— $928 $3,791 $— $49 $5,148 
March 31, 2025Term Loans Amortized Cost Basis by Origination Year
YTD 20252024202320222021Prior to 2021Revolving LoansRevolving to Term LoansTotal Loans
Consumer loans
Single-family residential
Current$233,030 $348,471 $801,664 $2,225,305 $1,991,466 $2,630,070 $— $— $8,230,006 
30 days past due— 716 897 2,461 660 7,365 — — 12,099 
60 days past due— — — 279 2,008 1,760 — — 4,047 
90+ days past due— — 813 523 1,296 15,534 — — 18,166 
Total$233,030 $349,187 $803,374 $2,228,568 $1,995,430 $2,654,729 $— $— $8,264,318 
Gross Charge-offs— — — — — 338 — — 338 
Construction - custom
Current$11,717 $71,846 $46,829 $5,902 $— $359 $— $— $136,653 
90+ days past due— — — 848 — — — — 848 
Total$11,717 $71,846 $46,829 $6,750 $— $359 $— $— $137,501 
Land - consumer lot loans
Current$7,261 $17,103 $12,015 $21,776 $22,553 $20,901 $— $— $101,609 
30 days past due— — — 168 — — — — 168 
90+ days past due— — — — — 7 — — 7 
Total$7,261 $17,103 $12,015 $21,944 $22,553 $20,908 $— $— $101,784 
HELOC
Current$— $— $— $— $— $4,670 $279,694 $1,029 $285,393 
30 days past due— — — — — 204 1,592 24 1,820 
60 days past due— — — — — 164 597 — 761 
90+ days past due— — — — — 82 172 — 254 
Total$— $— $— $— $— $5,120 $282,055 $1,053 $288,228 
Consumer
Current$8,999 $279 $18 $(9)$9,211 $23,863 $48,876 $— $91,237 
30 days past due— — — — — 175 102 — 277 
60 days past due— — — — — 73 133 — 206 
90+ days past due— — — — — 45 155 — 200 
Total$8,999 $279 $18 $(9)$9,211 $24,156 $49,266 $— $91,920 
Gross Charge-offs— 5 — — — 63 670 4 742 
Total consumer loans
Current$261,007 $437,699 $860,526 $2,252,974 $2,023,230 $2,679,863 $328,570 $1,029 $8,844,898 
30 days past due— 716 897 2,629 660 7,744 1,694 24 14,364 
60 days past due— — — 279 2,008 1,997 730 — 5,014 
90+ days past due— — 813 1,371 1,296 15,668 327 — 19,475 
Total$261,007 $438,415 $862,236 $2,257,253 $2,027,194 $2,705,272 $331,321 $1,053 $8,883,751 
Gross Charge-offs$— $5 $— $— $— $401 $670 $4 $1,080 
September 30, 2024Term Loans Amortized Cost Basis by Origination Year
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
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