
	December 31, 2021				September 30, 2021
	Amount		Percent		Amount		Percent
Mortgage loans:
One- to four-family (1)	$	129,151	11.6	%	$	119,935	11.1	%
Multi-family	84,180		7.5		87,563		8.1
Commercial	497,361		44.5		470,650		43.5
Construction - custom and owner/builder	116,267		10.4		109,152		10.1
Construction - speculative one- to four-family	18,255		1.6		17,813		1.6
Construction - commercial	42,611		3.8		43,365		4.0
Construction - multi-family	54,710		4.9		52,071		4.8
Construction - land development	13,680		1.2		10,804		1.0
Land	18,568		1.7		19,936		1.8
Total mortgage loans	974,783		87.2		931,289		86.0

Consumer loans:
Home equity and second mortgage	34,375		3.1		32,988		3.1
Other	2,462		0.2		2,512		0.2
Total consumer loans	36,837		3.3		35,500		3.3

Commercial loans:
Commercial business	85,006		7.6		74,579		6.9
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans	21,397		1.9		40,922		3.8
Total commercial loans	106,403		9.5	%	115,501		10.7

Total loans receivable	1,118,023		100.0	%	1,082,290		100.0	%
Less:
Undisbursed portion of construction loans in process	106,009				95,224
Deferred loan origination fees, net	4,539				5,143
Allowance for loan losses	13,468				13,469
Subtotal	124,016				113,836
Loans receivable, net	$	994,007			$	968,454
_____________________________
(1) Does not include one- to four-family loans held for sale totaling $3,700 and $3,217 at December 31, 2021 and September 30, 2021, respectively.


	Three Months Ended December 31, 2021
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,154	$	83	$	—	$	—	$	1,237
Multi-family	765		(17)		—		—		748
Commercial	6,813		(6)		—		—		6,807
Construction – custom and owner/builder	644		27		—		—		671
Construction – speculative one- to four-family	188		(35)		—		—		153
Construction – commercial	784		(191)		—		—		593
Construction – multi-family	436		24		—		—		460
Construction – land development	124		33		—		—		157
Land	470		(35)		—		—		435
Consumer loans:
Home equity and second mortgage	528		4		—		—		532
Other	50		(1)		(1)		—		48
Commercial business loans	1,513		114		—		—		1,627

Total	$	13,469	$	—	$	(1)	$	—	$	13,468


	Three Months Ended December 31, 2020
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,163	$	(28)	$	—	$	—	$	1,135
Multi-family	718		39		—		—		757
Commercial	7,144		(8)		—		—		7,136
Construction – custom and owner/builder	832		(62)		—		—		770
Construction – speculative one- to four-family	158		24		—		—		182
Construction – commercial	420		138		—		—		558
Construction – multi-family	238		(52)		—		—		186
Construction – land development	133		(10)		—		—		123
Land	572		(103)		—		5		474
Consumer loans:
Home equity and second mortgage	593		12		—		—		605
Other	71		(18)		—		4		57
Commercial business loans	1,372		68		—		9		1,449

Total	$	13,414	$	—	$	—	$	18	$	13,432


	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
December 31, 2021
Mortgage loans:
One- to four-family	$	—	$	1,237	$	1,237	$	582	$	128,569	$	129,151
Multi-family	—		748		748		—		84,180		84,180
Commercial	—		6,807		6,807		3,037		494,324		497,361
Construction – custom and owner/builder	—		671		671		—		63,748		63,748
Construction – speculative one- to four-family	—		153		153		—		8,760		8,760
Construction – commercial	—		593		593		—		32,290		32,290
Construction – multi-family	—		460		460		—		27,122		27,122
Construction – land development	—		157		157		—		7,594		7,594
Land	78		357		435		675		17,893		18,568
Consumer loans:
Home equity and second mortgage	—		532		532		456		33,919		34,375
Other	—		48		48		5		2,457		2,462
Commercial business loans	176		1,451		1,627		459		84,547		85,006
SBA PPP loans	—		—		—		—		21,397		21,397
Total	$	254	$	13,214	$	13,468	$	5,214	$	1,006,800	$	1,012,014


September 30, 2021
Mortgage loans:
One- to four-family	$	—	$	1,154	$	1,154	$	407	$	119,528	$	119,935
Multi-family	—		765		765		—		87,563		87,563
Commercial	—		6,813		6,813		3,143		467,507		470,650
Construction – custom and owner/builder	—		644		644		—		61,003		61,003
Construction – speculative one- to four-family	—		188		188		—		9,657		9,657
Construction – commercial	—		784		784		—		38,931		38,931
Construction – multi-family	—		436		436		—		22,888		22,888
Construction – land development	—		124		124		—		5,502		5,502
Land	76		394		470		683		19,253		19,936
Consumer loans:
Home equity and second mortgage	—		528		528		516		32,472		32,988
Other	—		50		50		17		2,495		2,512
Commercial business loans	171		1,342		1,513		458		74,121		74,579
SBA PPP loans	—		—		—		—		40,922		40,922
Total	$	247	$	13,222	$	13,469	$	5,224	$	981,842	$	987,066


	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
December 31, 2021
Mortgage loans:
One- to four-family	$	23	$	—	$	582	$	—	$	605	$	128,546	$	129,151
Multi-family	—		—		—		—		—		84,180		84,180
Commercial	34		183		675		—		892		496,469		497,361
Construction – custom and owner/builder	—		143		—		—		143		63,605		63,748
Construction – speculative one- to four-family	—		—		—		—		—		8,760		8,760
Construction – commercial	—		—		—		—		—		32,290		32,290
Construction – multi-family	—		—		—		—		—		27,122		27,122
Construction – land development	—		—		—		—		—		7,594		7,594
Land	—		—		676		—		676		17,892		18,568
Consumer loans:
Home equity and second mortgage	—		—		456		—		456		33,919		34,375
Other	—		—		5		—		5		2,457		2,462
Commercial business loans	—		—		459		—		459		84,547		85,006
SBA PPP loans	—		—		—		—		—		21,397		21,397
Total	$	57	$	326	$	2,853	$	—	$	3,236	$	1,008,778	$	1,012,014


September 30, 2021
Mortgage loans:
One- to four-family	$	—	$	180	$	407	$	—	$	587	$	119,348	$	119,935
Multi-family	—		—		—		—		—		87,563		87,563
Commercial	—		—		773		—		773		469,877		470,650
Construction – custom and owner/builder	—		—		—		—		—		61,003		61,003
Construction – speculative one- to four-family	—		—		—		—		—		9,657		9,657
Construction – commercial	—		—		—		—		—		38,931		38,931
Construction – multi-family	—		—		—		—		—		22,888		22,888
Construction – land development	—		—		—		—		—		5,502		5,502
Land	—		—		683		—		683		19,253		19,936
Consumer loans:
Home equity and second mortgage	—		—		516		—		516		32,472		32,988
Other	—		—		17		—		17		2,495		2,512
Commercial business loans	5				458				463		74,116		74,579
SBA PPP loans	—		—		—		—		—		40,922		40,922
Total	$	5	$	180	$	2,854	$	—	$	3,039	$	984,027	$	987,066

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 December 31, 2021 and September 30, 2021, there were no loans classified as loss.


	Loan Grades
December 31, 2021	Pass		Watch		Special Mention		Substandard		Total
Mortgage loans:
One- to four-family	$	127,984	$	47	$	533	$	587	$	129,151
Multi-family	84,180		—		—		—		84,180
Commercial	483,057		5,326		2,919		6,059		497,361
Construction – custom and owner/builder	62,024		1,724		—		—		63,748
Construction – speculative one- to four-family	8,760		—		—		—		8,760
Construction – commercial	30,773		—		1,517		—		32,290
Construction – multi-family	27,122		—		—		—		27,122
Construction – land development	7,562		—		—		32		7,594
Land	17,288		549		—		731		18,568
Consumer loans:
Home equity and second mortgage	33,635		145		—		595		34,375
Other	2,391		66		—		5		2,462
Commercial business loans	84,473		—		33		500		85,006
SBA PPP loans	21,397		—		—		—		21,397
Total	$	990,646	$	7,857	$	5,002	$	8,509	$	1,012,014

September 30, 2021
Mortgage loans:
One- to four-family	$	118,857	$	129	$	537	$	412	$	119,935
Multi-family	87,563		—		—		—		87,563
Commercial	456,188		10,285		2,921		1,256		470,650
Construction – custom and owner/builder	59,699		1,304		—		—		61,003
Construction – speculative one- to four-family	9,657		—		—		—		9,657
Construction – commercial	37,414		—		1,517		—		38,931
Construction – multi-family	22,888		—		—		—		22,888
Construction – land development	5,467		—		—		35		5,502
Land	18,648		558		—		730		19,936
Consumer loans:
Home equity and second mortgage	32,190		145		—		653		32,988
Other	2,465		30		—		17		2,512
Commercial business loans	73,992		49		37		501		74,579
SBA PPP loans	40,922		—		—		—		40,922
Total	$	965,950	$	12,500	$	5,012	$	3,604	$	987,066

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		Year to Date ("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	$	582	$	625	$	—	$	495	$	8	$	8

Commercial	3,037		3,037		—		3,090		40		31




Land	313		313		—		317		—		—
Consumer loans:
Home equity and second mortgage	456		456		—		486		—		—
Other	5		5		—		11		—		—
Commercial business loans	160		163		—		163		—		—
Subtotal	4,553		4,599		—		4,562		48		39

With an allowance recorded:
Mortgage loans:







Land	362		362		78		362		—		—



Commercial business loans	299		299		176		297		—		—
Subtotal	661		661		254		659		—		—

Total:
Mortgage loans:
One- to four-family	582		625		—		495		8		8

Commercial	3,037		3,037		—		3,090		40		31




Land	675		675		78		679		—		—
Consumer loans:
Home equity and second mortgage	456		456		—		486		—		—
Other	5		5		—		11		—		—
Commercial business loans	459		462		176		460		—		—
Total	$	5,214	$	5,260	$	254	$	5,221	$	48	$	39


	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	$	407	$	450	$	—	$	655	$	58	$	52

Commercial	3,143		3,143		—		3,039		159		127




Land	321		321		—		292		2		2
Consumer loans:
Home equity and second mortgage	516		516		—		552		1		1
Other	17		17		—		12		—		—
Commercial business loans	164		168		—		200		—		—
Subtotal	4,568		4,615		—		4,750		220		182

With an allowance recorded:
Mortgage loans:
One- to four-family	—		—		—		97		—		—






Land	362		362		76		72		—		—



Commercial business loans	294		294		171		285		—		—
Subtotal	656		656		247		454		—		—
Total
Mortgage loans:
One- to four-family	407		450		—		752		58		52

Commercial	3,143		3,143		—		3,039		159		127




Land	683		683		76		364		2		2
Consumer loans:
Home equity and second mortgage	516		516		—		552		1		1
Other	17		17		—		12		—		—
Commercial business loans	458		462		171		485		—		—
Total	$	5,224	$	5,271	$	247	$	5,204	$	220	$	182

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 $2.54 million and $2.55 million in TDRs included in impaired loans at December 31, 2021 and September 30, 2021, 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 December 31, 2021 and September 30, 2021. There were no TDRs for which there was a payment default within the first 12 months of the modification during the three months ended December 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 provided coronavirus emergency response and relief, including extending relief offered under the CARES Act related to restructured loans as a result of COVID-19, this provision ended on January 1, 2022.

In response to requests from borrowers and in accordance with the CARES Act and related regulatory guidance, the Company made payment deferral COVID-19 related modifications (typically 90-day payment deferrals with interest continuing to accrue or scheduled to be paid monthly) on a number of loans. All of these borrowers had resumed making payments as of December 31, 2021. 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.