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Loans Receivable And Allowance For Loan Losses
 6 Months Ended
Mar. 31, 2025
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 March 31, 2025 and September 30, 2024 (dollars in thousands):
 March 31,
2025		September 30,
2024
 AmountPercentAmountPercent
Mortgage loans:    
One- to four-family (1)$315,421 20.8 %$299,123 19.7 %
Multi-family178,590 11.8 177,350 11.7 
Commercial real estate602,248 39.7 599,219 39.6 
Construction - custom and owner/builder114,401 7.5 132,101 8.7 
Construction - speculative one- to four-family9,791 0.6 11,495 0.8 
Construction - commercial22,352 1.5 29,463 1.9 
Construction - multi-family46,602 3.1 28,401 1.9 
Construction - land development15,032 1.0 17,741 1.2 
Land32,301 2.1 29,366 1.9 
Total mortgage loans1,336,738 88.1 1,324,259 87.4 
Consumer loans:    
Home equity and second mortgage47,458 3.1 47,913 3.2 
Other2,375 0.2 3,129 0.2 
Total consumer loans49,833 3.3 51,042 3.4 
Commercial loans:
Commercial business131,243 8.6 138,743 9.2 
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans156 — 260 — 
    Total commercial loans131,399 8.6 139,003 9.2 
Total loans receivable1,517,970 100.0 %1,514,304 100.0 %
Less:    
Undisbursed portion of construction loans in process ("LIP")75,042  69,878  
Deferred loan origination fees, net5,329  5,425  
ACL17,525  17,478  
Subtotal97,896 92,781 
Loans receivable, net$1,420,074  $1,421,523  
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(1) Does not include one- to four-family loans held for sale totaling $1.2 million and $0 at March 31, 2025 and September 30, 2024, respectively.

Loans receivable at March 31, 2025 and September 30, 2024 are reported net of unamortized discounts totaling $131,000 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 March 31, 2025 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 March 31, 2025 and September 30, 2024, there were no loans classified as loss.

The following table sets forth the Company's loan portfolio at March 31, 2025 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$2,866 $19,918 $80,240 $108,811 $46,423 $50,451 $— $308,709 
Watch— — 1,781 — — — — 1,781 
Special Mention— — — 4,884 — — — 4,884 
Substandard— — — — — 47 — 47 
Total one- to four-family$2,866 $19,918 $82,021 $113,695 $46,423 $50,498 $— $315,421 
Multi-family
Risk Rating
Pass$3,253 $13,132 $21,521 $39,369 $23,076 $67,320 $1,169 $168,840 
Substandard— — — — 9,750 — — 9,750 
Total multi-family$3,253 $13,132 $21,521 $39,369 $32,826 $67,320 $1,169 $178,590 
Commercial real estate
Risk Rating
Pass$24,398 $25,722 $74,690 $125,256 $88,705 $239,554 $8,117 $586,442 
Watch— — — 243 — 9,696 — 9,939 
Special Mention— — — — — 5,543 — 5,543 
Substandard— — — — — 324 — 324 
Total commercial real estate$24,398 $25,722 $74,690 $125,499 $88,705 $255,117 $8,117 $602,248 
Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20252024202320222021PriorRevolving LoansTotal Loans Receivable
Construction-custom & owner/builder (1)
Risk Rating
Pass$8,364 $46,526 $2,064 $— $— $— $— $56,954 
Watch— 2,469 9,214 2,403 2,425 435 — 16,946 
Total construction-custom & owner/builder$8,364 $48,995 $11,278 $2,403 $2,425 $435 $— $73,900 
Construction-speculative one-to four-family (1)
Risk Rating
Pass$2,533 $1,850 $317 $— $— $— $— $4,700 
Watch— — 467 — — — — 467 
Total construction-speculative one-to four-family$2,533 $1,850 $784 $— $— $— $— $5,167 
Construction-commercial (1)
Risk Rating
Pass$3,981 $2,498 $9,283 $— $— $— $— $15,762 
Total construction-commercial $3,981 $2,498 $9,283 $— $— $— $— $15,762 
Construction-multi-family (1)
Risk Rating
Pass$1,648 $4,513 $18,606 $— $— $— $— $24,767 
Total construction-multi-family$1,648 $4,513 $18,606 $— $— $— $— $24,767 
Construction-land development (1)
Risk Rating
Pass$— $522 $1,469 $— $— $— $— $1,991 
Substandard— — — 11,549 — — — 11,549 
Total construction-land development$— $522 $1,469 $11,549 $— $— $— $13,540 
Land
Risk Rating
Pass$5,754 $9,758 $4,128 $6,092 $3,020 $2,530 $251 $31,533 
Watch— — — 299 — 469 — 768 
Total land$5,754 $9,758 $4,128 $6,391 $3,020 $2,999 $251 $32,301 
Home equity and second mortgage
Risk Rating
Pass$1,014 $5,444 $4,079 $1,753 $246 $2,441 $31,807 $46,784 
Watch— — — — — 11 29 40 
Substandard— — — — — 59 575 634 
Total home equity and second mortgage$1,014 $5,444 $4,079 $1,753 $246 $2,511 $32,411 $47,458 
Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20252024202320222021PriorRevolving LoansTotal Loans Receivable
Other consumer
Risk Rating
Pass$942 $300 $414 $90 $48 $473 $76 $2,343 
Watch— — — — — 9 — 9 
Substandard— — — — — — 23 $23 
Total other consumer$942 $300 $414 $90 $48 $482 $99 $2,375 
Current period gross write-offs$2 $1 $— $— $— $— $1 $4 
Commercial business
Risk Rating
Pass$4,090 $14,288 $18,849 $31,589 $7,323 $14,785 $38,148 $129,072 
Watch— — — — 22 — — 22 
Special Mention— — — 211 327 226 — 764 
Substandard— — 159 153 — 617 254 1,183 
Doubtful— 202 — — — — — 202 
Total commercial business$4,090 $14,490 $19,008 $31,953 $7,672 $15,628 $38,402 $131,243 
Current period gross write-offs$— $— $— $241 $— $— $— $241 
SBA PPP
Risk Rating
Pass$— $— $— $— $143 $13 $— $156 
Total SBA PPP$— $— $— $— $143 $13 $— $156 
Total loans receivable, gross (1)
Risk Rating
Pass$58,843 $144,471 $235,660 $312,960 $168,984 $377,567 $79,568 $1,378,053 
Watch— 2,469 11,462 2,945 2,447 10,620 29 29,972 
Special Mention— — — 5,095 327 5,769 — 11,191 
Substandard— — 159 11,702 9,750 1,047 852 23,510 
Doubtful— 202 — — — — — 202 
Total loans receivable$58,843 $147,142 $247,281 $332,702 $181,508 $395,003 $80,449 $1,442,928 
Current period gross charge-off$2 $1 $— $241 $— $— $1 $245 
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