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Loans Receivable And Allowance For Loan Losses
 3 Months Ended
Dec. 31, 2024
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Loans Receivable And Allowance For Loan Losses LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES
Loans receivable by portfolio segment consisted of the following at December 31, 2024 and September 30, 2024 (dollars in thousands):
 December 31,
2024		September 30,
2024
 AmountPercentAmountPercent
Mortgage loans:    
One- to four-family (1)$306,443 20.2 %$299,123 19.7 %
Multi-family177,861 11.7 177,350 11.7 
Commercial real estate597,054 39.3 599,219 39.6 
Construction - custom and owner/builder124,104 8.2 132,101 8.7 
Construction - speculative one- to four-family8,887 0.6 11,495 0.8 
Construction - commercial22,841 1.5 29,463 1.9 
Construction - multi-family48,940 3.2 28,401 1.9 
Construction - land development15,977 1.0 17,741 1.2 
Land30,538 2.0 29,366 1.9 
Total mortgage loans1,332,645 87.7 1,324,259 87.4 
Consumer loans:    
Home equity and second mortgage48,851 3.2 47,913 3.2 
Other2,889 0.2 3,129 0.2 
Total consumer loans51,740 3.4 51,042 3.4 
Commercial loans:
Commercial business135,312 8.9 138,743 9.2 
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans204 — 260 — 
    Total commercial loans135,516 8.9 139,003 9.2 
Total loans receivable1,519,901 100.0 %1,514,304 100.0 %
Less:    
Undisbursed portion of construction loans in process ("LIP")85,350  69,878  
Deferred loan origination fees, net5,444  5,425  
ACL17,288  17,478  
Subtotal108,082 92,781 
Loans receivable, net$1,411,819  $1,421,523  

Loans receivable at December 31, 2024 and September 30, 2024 are reported net of unamortized discounts totaling $147,000 and $155,000, respectively.

Credit Quality Indicators

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:

Pass:  Pass loans are defined as those loans that meet acceptable quality underwriting standards.

Watch:  Watch loans are defined as those loans that still exhibit acceptable quality, but have some concerns that justify greater attention.  If these concerns are not corrected, a potential for further adverse categorization exists.  These concerns could relate to a specific condition peculiar to the borrower, its industry segment or the general economic environment.

Special Mention: Special mention loans are defined as those loans deemed by management to have some potential weaknesses that deserve management’s close attention.  If left uncorrected, these potential weaknesses may result in the deterioration of the payment prospects of the loan. 

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.

Doubtful: Loans in this classification have the weaknesses of substandard loans with the additional characteristic that the weaknesses make the collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss. At December 31, 2024 and September 30, 2024, there was one loan classified as doubtful which is supported by an SBA guarantee of the remaining balance.

Loss:  Loans in this classification are considered uncollectible and of such little value that continuance as an asset 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, 2024 and September 30, 2024, there were no loans classified as loss.

The following table sets forth the Company's loan portfolio at December 31, 2024 by risk attribute and year of origination as well as current period gross charge-offs (dollars in thousands):
Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20252024202320222021PriorRevolving LoansTotal Loans Receivable
One-to four-family
Risk Rating
Pass$1,883 $14,158 $76,808 $112,988 $46,422 $52,343 $— $304,602 
Watch— — 1,794 — — — — 1,794 
Substandard— — — — — 47 — 47 
Total one- to four-family$1,883 $14,158 $78,602 $112,988 $46,422 $52,390 $— $306,443 
Multi-family
Risk Rating
Pass$2,908 $13,134 $19,416 $39,515 $32,976 $68,743 $1,169 $177,861 
Total multi-family$2,908 $13,134 $19,416 $39,515 $32,976 $68,743 $1,169 $177,861 
Commercial real estate
Risk Rating
Pass$5,995 $25,866 $77,637 $125,111 $89,546 $248,060 $7,877 $580,092 
Watch— — 907 — — 10,921 — 11,828 
Special Mention— — — — — 4,401 — 4,401 
Substandard— — — — — 733 — 733 
Total commercial real estate$5,995 $25,866 $78,544 $125,111 $89,546 $264,115 $7,877 $597,054 
Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20252024202320222021PriorRevolving LoansTotal Loans Receivable
Construction-custom & owner/builder (1)
Risk Rating
Pass$2,276 $47,406 $9,167 $— $209 $— $— $59,058 
Watch— 248 9,595 5,306 2,726 746 — 18,621 
Total construction-custom & owner/builder$2,276 $47,654 $18,762 $5,306 $2,935 $746 $— $77,679 
Construction-speculative one-to four-family (1)
Risk Rating
Pass$982 $2,921 $866 $— $— $— $— $4,769 
Total construction-speculative one-to four-family$982 $2,921 $866 $— $— $— $— $4,769 
Construction-commercial (1)
Risk Rating
Pass$1,401 $2,060 $8,966 $2,072 $— $— $— $14,499 
Total construction-commercial $1,401 $2,060 $8,966 $2,072 $— $— $— $14,499 
Construction-multi-family (1)
Risk Rating
Pass$838 $2,572 $20,603 $— $— $— $— $24,013 
Total construction-multi-family$838 $2,572 $20,603 $— $— $— $— $24,013 
Construction-land development (1)
Risk Rating
Pass$— $1,444 $1,446 $— $— $— $— $2,890 
Watch— — — 11,549 — — — 11,549 
Total construction-land development$— $1,444 $1,446 $11,549 $— $— $— $14,439 
Land
Risk Rating
Pass$2,417 $9,785 $4,430 $6,449 $3,793 $2,656 $232 $29,762 
Watch— — — 301 — 475 — 776 
Total land$2,417 $9,785 $4,430 $6,750 $3,793 $3,131 $232 $30,538 
Home equity and second mortgage
Risk Rating
Pass$885 $5,728 $4,435 $1,783 $249 $2,584 $31,271 $46,935 
Watch— — — — 1,250 — — 1,250 
Substandard— — — — — 79 587 666 
Total home equity and second mortgage$885 $5,728 $4,435 $1,783 $1,499 $2,663 $31,858 $48,851 
Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20252024202320222021PriorRevolving LoansTotal Loans Receivable
Other consumer
Risk Rating
Pass$1,319 $395 $427 $94 $40 $506 $73 $2,854 
Watch— — — — — 35 — 35 
Total other consumer$1,319 $395 $427 $94 $40 $541 $73 $2,889 
Current period gross write-offs$— $2 $— $— $— $— $1 $3 
Commercial business
Risk Rating
Pass$2,475 $15,538 $18,992 $33,119 $7,192 $11,129 $44,607 $133,052 
Watch— — — 197 380 625 180 1,382 
Substandard— 166 — — — 254 256 676 
Doubtful— 202 — — — — — 202 
Total commercial business$2,475 $15,906 $18,992 $33,316 $7,572 $12,008 $45,043 $135,312 
Current period gross write-offs$— $— $— $241 $— $— $— $241 
SBA PPP
Risk Rating
Pass$— $— $— $— $182 $22 $— $204 
Total SBA PPP$— $— $— $— $182 $22 $— $204 
Total loans receivable, gross (1)
Risk Rating
Pass$23,379 $141,007 $243,193 $321,131 $180,609 $386,043 $85,229 $1,380,591 
Watch— 248 12,296 17,353 4,356 12,802 180 47,235 
Special Mention— — — — — 4,401 — 4,401 
Substandard— 166 — — — 1,113 843 2,122 
Doubtful— 202 — — — — — 202 
Total loans receivable$23,379 $141,623 $255,489 $338,484 $184,965 $404,359 $86,252 $1,434,551 
Current period gross charge-off$— $2 $— $241 $— $— $1 $244 
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