
	March 31, 2021				September 30, 2020
	Amount		Percent		Amount		Percent
Mortgage loans:
One- to four-family (1)	$	117,184	10.3	%	$	118,580	10.5	%
Multi-family	92,435		8.1		85,053		7.5
Commercial	461,966		40.5		453,574		40.0
Construction - custom and owner/builder	105,305		9.2		129,572		11.4
Construction - speculative one- to four-family	17,289		1.5		14,592		1.3
Construction - commercial	42,340		3.7		33,144		2.9
Construction - multi-family	44,266		3.9		34,476		3.0
Construction - land development	2,238		0.2		7,712		0.7
Land	19,041		1.7		25,571		2.3
Total mortgage loans	902,064		79.1		902,274		79.6

Consumer loans:
Home equity and second mortgage	32,026		2.8		32,077		2.8
Other	2,756		0.2		3,572		0.3
Total consumer loans	34,782		3.0		35,649		3.1

Commercial loans:
Commercial business	66,645		5.8		69,540		6.1
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans	138,175		12.1		126,820		11.2
Total commercial loans	204,820		17.9	%	196,360		17.3

Total loans receivable	1,141,666		100.0	%	1,134,283		100.0	%
Less:
Undisbursed portion of construction loans in process	90,550				100,558
Deferred loan origination fees, net	6,999				6,436
Allowance for loan losses	13,434				13,414
Subtotal	110,983				120,408
Loans receivable, net	$	1,030,683			$	1,013,875
_____________________________
(1) Does not include one- to four-family loans held for sale totaling $8,455 and $4,509 at March 31, 2021 and September 30, 2020, respectively.


	Three Months Ended March 31, 2021
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,135	$	16	$	—	$	—	$	1,151
Multi-family	757		27		—		—		784
Commercial	7,136		102		—		—		7,238
Construction – custom and owner/builder	770		(75)		—		—		695
Construction – speculative one- to four-family	182		(34)		—		—		148
Construction – commercial	558		156		—		—		714
Construction – multi-family	186		137		—		—		323
Construction – land development	123		(104)		—		—		19
Land	474		(72)		—		5		407
Consumer loans:
Home equity and second mortgage	605		(53)		—		—		552
Other	57		—		(1)		—		56
Commercial business loans	1,449		(100)		(2)		—		1,347
SBA PPP loans	—		—		—		—		—
Total	$	13,432	$	—	$	(3)	$	5	$	13,434


	Six Months Ended March 31, 2021
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	1,163	$	(12)	$	—	$	—	$	1,151
Multi-family	718		66		—		—		784
Commercial	7,144		94		—		—		7,238
Construction – custom and owner/builder	832		(137)		—		—		695
Construction – speculative one- to four-family	158		(10)		—		—		148
Construction – commercial	420		294		—		—		714
Construction – multi-family	238		85		—		—		323
Construction – land development	133		(114)		—		—		19
Land	572		(175)		—		10		407
Consumer loans:
Home equity and second mortgage	593		(41)		—		—		552
Other	71		(18)		(1)		4		56
Commercial business loans	1,372		(32)		(2)		9		1,347
SBA PPP loans	—		—		—		—		—
Total	$	13,414	$	—	$	(3)	$	23	$	13,434


	Three Months Ended March 31, 2020
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,065	$	83	$	—	$	1	$	1,149
Multi-family	499		96		—		—		595
Commercial	4,410		1,351		—		1		5,762
Construction – custom and owner/builder	754		(57)		—		—		697
Construction – speculative one- to four-family	248		(44)		—		—		204
Construction – commercial	403		20		—		—		423
Construction – multi-family	333		61		—		—		394
Construction – land development	48		32		—		—		80
Land	654		19		—		5		678
Consumer loans:
Home equity and second mortgage	609		47		—		—		656
Other	87		(10)		(1)		2		78
Commercial business loans	772		402		—		—		1,174
Total	$	9,882	$	2,000	$	(1)	$	9	$	11,890


	Six Months Ended March 31, 2020
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	1,167	$	(21)	$	—	$	3	$	1,149
Multi-family	481		114		—		—		595
Commercial	4,154		1,603		—		5		5,762
Construction – custom and owner/builder	755		(63)		—		5		697
Construction – speculative one- to four-family	212		(8)		—		—		204
Construction – commercial	338		85		—		—		423
Construction – multi-family	375		19		—		—		394
Construction – land development	67		13		—		—		80
Land	697		(29)		—		10		678
Consumer loans:
Home equity and second mortgage	623		33		—		—		656
Other	99		(13)		(11)		3		78
Commercial business loans	722		467		(15)		—		1,174
Total	$	9,690	$	2,200	$	(26)	$	26	$	11,890


	Allowance for Loan Losses						Recorded Investment in Loans
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
March 31, 2021
Mortgage loans:
One- to four-family	$	—	$	1,151	$	1,151	$	896	$	116,288	$	117,184
Multi-family	—		784		784		—		92,435		92,435
Commercial	—		7,238		7,238		3,028		458,938		461,966
Construction – custom and owner/builder	—		695		695		—		62,973		62,973
Construction – speculative one- to four-family	—		148		148		—		7,336		7,336
Construction – commercial	—		714		714		—		34,217		34,217
Construction – multi-family	—		323		323		—		15,739		15,739
Construction – land development	—		19		19		—		623		623
Land	—		407		407		173		18,868		19,041
Consumer loans:
Home equity and second mortgage	—		552		552		537		31,489		32,026
Other	—		56		56		8		2,748		2,756
Commercial business loans	73		1,274		1,347		527		66,118		66,645
SBA PPP loans	—		—		—		—		138,175		138,175
Total	$	73	$	13,361	$	13,434	$	5,169	$	1,045,947	$	1,051,116


September 30, 2020
Mortgage loans:
One- to four-family	$	3	$	1,160	$	1,163	$	1,143	$	117,437	$	118,580
Multi-family	—		718		718		—		85,053		85,053
Commercial	—		7,144		7,144		3,242		450,332		453,574
Construction – custom and owner/builder	—		832		832		—		75,332		75,332
Construction – speculative one- to four-family	—		158		158		—		7,108		7,108
Construction – commercial	—		420		420		—		20,927		20,927
Construction – multi-family	—		238		238		—		10,832		10,832
Construction – land development	—		133		133		—		4,739		4,739
Land	—		572		572		394		25,177		25,571
Consumer loans:
Home equity and second mortgage	—		593		593		555		31,522		32,077
Other	—		71		71		9		3,563		3,572
Commercial business loans	38		1,334		1,372		430		69,110		69,540
SBA PPP loans	—		—		—		—		126,820		126,820
Total	$	41	$	13,373	$	13,414	$	5,773	$	1,027,952	$	1,033,725


	30–59 Days Past Due		60-89 Days Past Due		Non- Accrual (1)		Past Due 90 Days or More and Still Accruing		Total Past Due		Current		Total Loans
March 31, 2021
Mortgage loans:
One- to four-family	$	—	$	—	$	415	$	—	$	415	$	116,769	$	117,184
Multi-family	—		—		—		—		—		92,435		92,435
Commercial	514		—		643		—		1,157		460,809		461,966
Construction – custom and owner/builder	808		—		—		—		808		62,165		62,973
Construction – speculative one- to four-family	—		—		—		—		—		7,336		7,336
Construction – commercial	—		—		—		—		—		34,217		34,217
Construction – multi-family	—		—		—		—		—		15,739		15,739
Construction – land development	—		—		—		—		—		623		623
Land	217		—		173		—		390		18,651		19,041
Consumer loans:
Home equity and second mortgage	—		73		539		—		612		31,414		32,026
Other	11		—		8		—		19		2,737		2,756
Commercial business loans	—		—		527		—		527		66,118		66,645
SBA PPP loans	—		—		—		—		—		138,175		138,175
Total	$	1,550	$	73	$	2,305	$	—	$	3,928	$	1,047,188	$	1,051,116


September 30, 2020
Mortgage loans:
One- to four-family	$	—	$	68	$	659	$	—	$	727	$	117,853	$	118,580
Multi-family	—		—		—		—		—		85,053		85,053
Commercial	—		519		858		—		1,377		452,197		453,574
Construction – custom and owner/builder	—		—		—		—		—		75,332		75,332
Construction – speculative one- to four-family	—		—		—		—		—		7,108		7,108
Construction – commercial	—		—		—		—		—		20,927		20,927
Construction – multi-family	—		—		—		—		—		10,832		10,832
Construction – land development	—		38		—		—		38		4,701		4,739
Land	—		144		394		—		538		25,033		25,571
Consumer loans:
Home equity and second mortgage	—		22		555		—		577		31,500		32,077
Other	3		—		9		—		12		3,560		3,572
Commercial business loans	49				430				479		69,061		69,540
SBA PPP loans	—		—		—		—		—		126,820		126,820
Total	$	52	$	791	$	2,905	$	—	$	3,748	$	1,029,977	$	1,033,725

The Company uses credit risk grades which reflect the Company’s assessment of a loan’s risk or loss potential. The Company categorizes loans into risk grade categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors such as the estimated fair value of the collateral. The Company uses the following definitions for credit risk ratings as part of the on-going monitoring of the credit quality of its loan portfolio:

Substandard: Substandard loans are defined as those loans that are inadequately protected by the current net worth and paying capacity of the obligor, or of the collateral pledged. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. If the weakness or weaknesses are not corrected, there is the distinct possibility that some loss will be sustained.

Loss: Loans in this classification are considered uncollectible and of such little value that continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this loan even though partial recovery may be realized in the future. At both March 31, 2021 and September 30, 2020, there were no loans classified as loss.


	Loan Grades
March 31, 2021	Pass		Watch		Special Mention		Substandard		Total
Mortgage loans:
One- to four-family	$	115,603	$	615	$	544	$	422	$	117,184
Multi-family	92,435		—		—		—		92,435
Commercial	439,977		13,290		7,600		1,099		461,966
Construction – custom and owner/builder	62,165		808		—		—		62,973
Construction – speculative one- to four-family	7,336		—		—		—		7,336
Construction – commercial	32,700		—		1,517		—		34,217
Construction – multi-family	15,739		—		—		—		15,739
Construction – land development	583		—		—		40		623
Land	17,727		575		566		173		19,041
Consumer loans:
Home equity and second mortgage	31,331		36		—		659		32,026
Other	2,717		31		—		8		2,756
Commercial business loans	66,030		—		45		570		66,645
SBA PPP loans	138,175		—		—		—		138,175
Total	$	1,022,518	$	15,355	$	10,272	$	2,971	$	1,051,116

September 30, 2020
Mortgage loans:
One- to four-family	$	115,992	$	1,369	$	551	$	668	$	118,580
Multi-family	85,053		—		—		—		85,053
Commercial	441,037		7,712		3,447		1,378		453,574
Construction – custom and owner/builder	74,529		803		—		—		75,332
Construction – speculative one- to four-family	7,108		—		—		—		7,108
Construction – commercial	19,525		—		1,402		—		20,927
Construction – multi-family	10,832		—		—		—		10,832
Construction – land development	4,701		—		—		38		4,739
Land	23,290		1,518		370		393		25,571
Consumer loans:
Home equity and second mortgage	31,344		53		—		680		32,077
Other	3,531		32		—		9		3,572
Commercial business loans	68,904		59		94		483		69,540
SBA PPP loans	126,820		—		—		—		126,820
Total	$	1,012,666	$	11,546	$	5,864	$	3,649	$	1,033,725

A loan is considered impaired when it is probable that the Company will be unable to collect all amounts (principal and interest) when due according to the contractual terms of the loan agreement. Smaller balance homogeneous loans, such as residential mortgage loans and consumer loans, may be collectively evaluated for impairment. When a loan has been identified as being impaired, the amount of the impairment is measured by using discounted cash flows, except when, as an alternative, the current estimated fair value of the collateral (reduced by estimated costs to sell, if applicable) or observable market price is used. The valuation of real estate collateral is subjective in nature and may be adjusted in future periods because of changes in economic conditions. Management considers third-party appraisals, as well as independent fair market value assessments from realtors or persons involved in selling real estate, in determining the estimated fair value of particular properties. In addition, as certain of these third-party appraisals and independent fair market value assessments are only updated periodically, changes in the values of specific properties may have occurred subsequent to the most recent appraisals. Accordingly, the amounts of any such potential changes and any related adjustments are generally recorded at the time that such information is received. When the estimated net realizable value of the impaired loan is less than the recorded investment in the loan (including accrued interest and net deferred loan origination fees or costs), impairment is recognized by creating or adjusting an allocation of the allowance for loan losses, and uncollected accrued interest is reversed against interest income. If ultimate collection of principal is in doubt, all cash receipts on impaired loans are applied to reduce the principal balance. The categories of non-accrual loans and impaired loans overlap, although they are not identical.


	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		Quarter to Date ("QTD") Average Recorded Investment (1)		Year to Date ("YTD") Average Recorded Investment (2)		QTD Interest Income Recognized (1)		YTD Interest Income Recognized (2)		QTD Cash Basis Interest Income Recognized (1)		YTD Cash Basis Interest Income Recognized (2)
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	895	$	938	$	—	$	899	$	819	$	19	$	41	$	16	$	36

Commercial	3,028		3,028		—		3,028		3,099		40		80		33		63




Land	173		208		—		289		324		1		1		1		1
Consumer loans:
Home equity and second mortgage	538		538		—		573		567		1		1		1		1
Other	8		8		—		9		9		—		—		—		—
Commercial business loans	233		236		—		218		206		—		—		—		—
Subtotal	4,875		4,956		—		5,016		5,024		61		123		51		101

With an allowance recorded:
Mortgage loans:
One- to four-family	—		—		—		—		161		—		—		—		—










Commercial business loans	294		294		73		295		279		—		—		—		—
Subtotal	294		294		73		295		440		—		—		—		—

Total:
Mortgage loans:
One- to four-family	895		938		—		899		980		19		41		16		36

Commercial	3,028		3,028		—		3,028		3,099		40		80		33		63




Land	173		208		—		289		324		1		1		1		1
Consumer loans:
Home equity and second mortgage	538		538		—		573		567		1		1		1		1
Other	8		8		—		9		9		—		—		—		—
Commercial business loans	527		530		73		513		485		—		—		—		—
Total	$	5,169	$	5,250	$	73	$	5,311	$	5,464	$	61	$	123	$	51	$	101


	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		YTD Average Recorded Investment (1)		YTD Interest Income Recognized (1)		YTD Cash Basis Interest Income Recognized (1)
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	659	$	703	$	—	$	1,127	$	44	$	34

Commercial	3,242		3,242		—		3,236		133		107




Land	394		438		—		125		—		—
Consumer loans:
Home equity and second mortgage	555		555		—		581		—		—
Other	9		9		—		6		—		—
Commercial business loans	182		182		—		176		—		—
Subtotal	5,041		5,129		—		5,251		177		141

With an allowance recorded:
Mortgage loans:
One- to four-family	484		484		3		194		16		8






Land	—		—		—		110		—		—
Consumer loans:

Other	—		—		—		7		—		—
Commercial business loans	248		248		38		370		—		—
Subtotal	732		732		41		681		16		8
Total
Mortgage loans:
One- to four-family	1,143		1,187		3		1,321		60		42

Commercial	3,242		3,242		—		3,236		133		107




Land	394		438		—		235		—		—
Consumer loans:
Home equity and second mortgage	555		555		—		581		—		—
Other	9		9		—		13		—		—
Commercial business loans	430		430		38		546		—		—
Total	$	5,773	$	5,861	$	41	$	5,932	$	193	$	149

A troubled debt restructured loan ("TDR") is a loan for which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. Examples of such concessions include, but are not limited to: a reduction in the stated interest rate; an extension of the maturity at an interest rate below current market rates; a reduction in the face amount of the debt; a reduction in the accrued interest; or re-amortizations, extensions, deferrals and renewals. TDRs are considered impaired and are individually evaluated for impairment. TDRs are classified as non-accrual (and considered to be non-performing) unless they have been performing in accordance with modified terms for a period of at least six months. The Company had $3.06 million and $3.07 million in TDRs included in impaired loans at March 31, 2021 and September 30, 2020, respectively, and had no commitments at these dates to lend additional funds on these loans. There was no allowance for loan losses allocated to TDRs at March 31, 2021, and, at September 30, 2020, there was $3,000 in allowance for loan losses allocated to TDRs. There were no TDRs for which there was a payment default within the first 12 months of the modification during the six months ended March 31, 2021.

The Coronavirus Aid, Relief, and Economic Security Act of 2020 signed into law on March 27, 2020 ("CARES Act") provided guidance around the modification of loans as a result of the COVID-19 pandemic, which outlined, among other criteria, that short-term modifications made on a good faith basis to borrowers who were current as defined under the CARES Act prior to any relief, are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers are considered current under the CARES Act and related regulatory guidance if they are less than 30 days past due on their contractual payments at the time a modification program is implemented. On December 27, 2020, the Consolidated Appropriations Act, 2021 ("CAA 2021") was signed into law. Among other purposes, this act provides coronavirus emergency response and relief, including extending relief offered under the CARES Act related to restructured loans as a result of COVID-19 through January 1, 2022 or 60 days after the end of the the national emergency declared by the President, whichever is earlier.

In response to requests from borrowers, the Company made payment deferral modifications (typically 90-day payment deferrals with interest continuing to accrue or scheduled to be paid monthly) on a number of loans. The majority of these borrowers had resumed making payments as of March 31, 2021, and as of that date, only eight loans totaling $12.88 million remained on deferral status under COVID-19 loan modification forbearance agreements. Loan modifications in accordance with the CARES Act and related regulatory guidance are still subject to an evaluation in regard to determining whether or not a loan is deemed to be impaired. See Note 10 - Recent Accounting Pronouncements.