
	March 31, 2022				September 30, 2021
	Amount		Percent		Amount		Percent
Mortgage loans:
One- to four-family (1)	$	133,925	11.6	%	$	119,935	11.1	%
Multi-family	82,526		7.2		87,563		8.1
Commercial	523,479		45.5		470,650		43.5
Construction - custom and owner/builder	114,394		9.9		109,152		10.1
Construction - speculative one- to four-family	15,438		1.3		17,813		1.6
Construction - commercial	35,416		3.1		43,365		4.0
Construction - multi-family	64,141		5.6		52,071		4.8
Construction - land development	10,687		0.9		10,804		1.0
Land	22,192		1.9		19,936		1.8
Total mortgage loans	1,002,198		87.0		931,289		86.0

Consumer loans:
Home equity and second mortgage	32,980		2.9		32,988		3.1
Other	2,277		0.2		2,512		0.2
Total consumer loans	35,257		3.1		35,500		3.3

Commercial loans:
Commercial business	108,644		9.4		74,579		6.9
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans	5,934		0.5		40,922		3.8
Total commercial loans	114,578		9.9	%	115,501		10.7

Total loans receivable	1,152,033		100.0	%	1,082,290		100.0	%
Less:
Undisbursed portion of construction loans in process	100,719				95,224
Deferred loan origination fees, net	3,801				5,143
Allowance for loan losses	13,433				13,469
Subtotal	117,953				113,836
Loans receivable, net	$	1,034,080			$	968,454
_____________________________
(1) Does not include one- to four-family loans held for sale totaling $2,772 and $3,217 at March 31, 2022 and September 30, 2021, respectively.


	Three Months Ended March 31, 2022
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,237	$	10	$	—	$	—	$	1,247
Multi-family	748		(13)		—		—		735
Commercial	6,807		124		—		—		6,931
Construction – custom and owner/builder	671		15		—		—		686
Construction – speculative one- to four-family	153		(27)		—		—		126
Construction – commercial	593		(130)		—		—		463
Construction – multi-family	460		(24)		—		—		436
Construction – land development	157		(31)		—		—		126
Land	435		(58)		—		—		377
Consumer loans:
Home equity and second mortgage	532		(63)		—		—		469
Other	48		(4)		(1)		1		44
Commercial business loans	1,627		201		(49)		14		1,793

Total	$	13,468	$	—	$	(50)	$	15	$	13,433


	Six Months Ended March 31, 2022
	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One-to four-family	$	1,154	$	93	$	—	$	—	$	1,247
Multi-family	765		(30)		—		—		735
Commercial	6,813		118		—		—		6,931
Construction – custom and owner/builder	644		42		—		—		686
Construction – speculative one- to four-family	188		(62)		—		—		126
Construction – commercial	784		(321)		—		—		463
Construction – multi-family	436		—		—		—		436
Construction – land development	124		2		—		—		126
Land	470		(93)		—		—		377
Consumer loans:
Home equity and second mortgage	528		(59)		—		—		469
Other	50		(5)		(2)		1		44
Commercial business loans	1,513		315		(49)		14		1,793

Total	$	13,469	$	—	$	(51)	$	15	$	13,433


	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

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

Total	$	13,414	$	—	$	(3)	$	23	$	13,434


	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, 2022
Mortgage loans:
One- to four-family	$	—	$	1,247	$	1,247	$	578	$	133,347	$	133,925
Multi-family	—		735		735		—		82,526		82,526
Commercial	—		6,931		6,931		3,023		520,456		523,479
Construction – custom and owner/builder	—		686		686		—		68,530		68,530
Construction – speculative one- to four-family	—		126		126		—		7,634		7,634
Construction – commercial	—		463		463		—		28,005		28,005
Construction – multi-family	—		436		436		—		29,048		29,048
Construction – land development	—		126		126		—		6,140		6,140
Land	—		377		377		723		21,469		22,192
Consumer loans:
Home equity and second mortgage	—		469		469		413		32,567		32,980
Other	—		44		44		5		2,272		2,277
Commercial business loans	127		1,666		1,793		405		108,239		108,644
SBA PPP loans	—		—		—		—		5,934		5,934
Total	$	127	$	13,306	$	13,433	$	5,147	$	1,046,167	$	1,051,314


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
March 31, 2022
Mortgage loans:
One- to four-family	$	—	$	—	$	578	$	—	$	578	$	133,347	$	133,925
Multi-family	—		—		—		—		—		82,526		82,526
Commercial	215		8		671		—		894		522,585		523,479
Construction – custom and owner/builder	—		—		—		—		—		68,530		68,530
Construction – speculative one- to four-family	—		—		—		—		—		7,634		7,634
Construction – commercial	—		—		—		—		—		28,005		28,005
Construction – multi-family	—		—		—		—		—		29,048		29,048
Construction – land development	—		—		—		—		—		6,140		6,140
Land	—		—		723		—		723		21,469		22,192
Consumer loans:
Home equity and second mortgage	67		—		269		—		336		32,644		32,980
Other	—		—		5		—		5		2,272		2,277
Commercial business loans	—		—		405		—		405		108,239		108,644
SBA PPP loans	—		—		—		—		—		5,934		5,934
Total	$	282	$	8	$	2,651	$	—	$	2,941	$	1,048,373	$	1,051,314


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 March 31, 2022 and September 30, 2021, there were no loans classified as loss.


	Loan Grades
March 31, 2022	Pass		Watch		Special Mention		Substandard		Total
Mortgage loans:
One- to four-family	$	133,298	$	45	$	—	$	582	$	133,925
Multi-family	82,526		—		—		—		82,526
Commercial	511,127		3,418		2,915		6,019		523,479
Construction – custom and owner/builder	67,692		838		—		—		68,530
Construction – speculative one- to four-family	7,634		—		—		—		7,634
Construction – commercial	26,488		—		1,517		—		28,005
Construction – multi-family	29,048		—		—		—		29,048
Construction – land development	6,109		—		—		31		6,140
Land	20,929		540		—		723		22,192
Consumer loans:
Home equity and second mortgage	32,355		144		—		481		32,980
Other	2,207		65		—		5		2,277
Commercial business loans	108,199		—		—		445		108,644
SBA PPP loans	5,934		—		—		—		5,934
Total	$	1,033,546	$	5,050	$	4,432	$	8,286	$	1,051,314

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		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	$	578	$	621	$	—	$	580	$	522	$	8	$	16	$	8	$	16

Commercial	3,023		3,023		—		3,030		3,068		39		79		32		63




Land	723		723		—		518		452		—		—		—		—
Consumer loans:
Home equity and second mortgage	413		413		—		435		462		1		1		1		1
Other	5		5		—		5		9		—		—		—		—
Commercial business loans	156		204		—		158		160		—		—		—		—
Subtotal	4,898		4,989		—		4,726		4,673		48		96		41		80

With an allowance recorded:
Mortgage loans:







Land	—		—		—		181		241		—		—		—		—



Commercial business loans	249		249		127		274		281		—		—		—		—
Subtotal	249		249		127		455		522		—		—		—		—

Total:
Mortgage loans:
One- to four-family	578		621		—		580		522		8		16		8		16

Commercial	3,023		3,023		—		3,030		3,068		39		79		32		63




Land	723		723		—		699		693		—		—		—		—
Consumer loans:
Home equity and second mortgage	413		413		—		435		462		1		1		1		1
Other	5		5		—		5		9		—		—		—		—
Commercial business loans	405		453		127		432		441		—		—		—		—
Total	$	5,147	$	5,238	$	127	$	5,181	$	5,195	$	48	$	96	$	41	$	80


	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 $2.67 million and $2.55 million in TDRs included in impaired loans at March 31, 2022 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 March 31, 2022 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 six months ended March 31, 2022.

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,the CAA 2021, provided coronavirus emergency response and relief, including extending relief offered under the CARES Act related to restructured loans as a result of COVID-19. The provisions 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 March 31, 2022. 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.