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Loans Receivable And Allowance For Loan Losses
 9 Months Ended
Jun. 30, 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 June 30, 2025 and September 30, 2024 (dollars in thousands):
 June 30,
2025		September 30,
2024
 AmountPercentAmountPercent
Mortgage loans:    
One- to four-family (1)$317,574 20.6 %$299,123 19.7 %
Multi-family200,418 13.0 177,350 11.7 
Commercial real estate607,924 39.5 599,219 39.6 
Construction - custom and owner/builder128,900 8.4 132,101 8.7 
Construction - speculative one- to four-family9,595 0.6 11,495 0.8 
Construction - commercial15,992 1.0 29,463 1.9 
Construction - multi-family32,731 2.1 28,401 1.9 
Construction - land development15,461 1.0 17,741 1.2 
Land36,193 2.4 29,366 1.9 
Total mortgage loans1,364,788 88.6 1,324,259 87.4 
Consumer loans:    
Home equity and second mortgage47,511 3.1 47,913 3.2 
Other2,176 0.1 3,129 0.2 
Total consumer loans49,687 3.2 51,042 3.4 
Commercial loans:
Commercial business126,497 8.2 138,743 9.2 
U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans101 — 260 — 
    Total commercial loans126,598 8.2 139,003 9.2 
Total loans receivable1,541,073 100.0 %1,514,304 100.0 %
Less:    
Undisbursed portion of construction loans in process ("LIP")76,272  69,878  
Deferred loan origination fees, net5,427  5,425  
ACL17,878  17,478  
Subtotal99,577 92,781 
Loans receivable, net$1,441,496  $1,421,523  
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(1) Does not include one- to four-family loans held for sale totaling $1.76 million and $0 at June 30, 2025 and September 30, 2024, respectively.

Loans receivable at June 30, 2025 and September 30, 2024, are reported net of unamortized discounts totaling $63,000 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 June 30, 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 June 30, 2025 and September 30, 2024, there were no loans classified as loss.

The following table sets forth the Company's loan portfolio at June 30, 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$6,854 $23,038 $79,736 $105,353 $45,490 $50,458 $— $310,929 
Special Mention— — — 4,864 — — — 4,864 
Substandard— — 1,781 — — — — 1,781 
Total one- to four-family$6,854 $23,038 $81,517 $110,217 $45,490 $50,458 $— $317,574 
Multi-family
Risk Rating
Pass$12,807 $13,131 $35,324 $39,219 $22,970 $64,281 $1,196 $188,928 
Watch— — — — — 1,786 — 1,786 
Substandard— — — — 9,704 — — 9,704 
Total multi-family$12,807 $13,131 $35,324 $39,219 $32,674 $66,067 $1,196 $200,418 
Commercial real estate
Risk Rating
Pass$34,874 $25,570 $80,034 $124,457 $84,177 $232,142 $8,459 $589,713 
Watch— — — 239 — 9,289 — 9,528 
Special Mention— — — — — 1,153 — 1,153 
Substandard— — — — — 7,530 — 7,530 
Total commercial real estate$34,874 $25,570 $80,034 $124,696 $84,177 $250,114 $8,459 $607,924 
Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20252024202320222021PriorRevolving LoansTotal Loans Receivable
Construction-custom & owner/builder (1)
Risk Rating
Pass$18,895 $44,346 $1,320 $— $— $— $— $64,561 
Watch— 1,469 6,562 2,408 2,446 — — 12,885 
Total construction-custom & owner/builder$18,895 $45,815 $7,882 $2,408 $2,446 $— $— $77,446 
Construction-speculative one-to four-family (1)
Risk Rating
Pass$5,137 $325 $34 $— $— $— $— $5,496 
Watch— — 477 — — — — 477 
Total construction-speculative one-to four-family$5,137 $325 $511 $— $— $— $— $5,973 
Construction-commercial (1)
Risk Rating
Pass$5,637 $2,708 $3,492 $— $— $— $— $11,837 
Total construction-commercial $5,637 $2,708 $3,492 $— $— $— $— $11,837 
Construction-multi-family (1)
Risk Rating
Pass$6,042 $6,811 $4,760 $— $— $— $— $17,613 
Total construction-multi-family$6,042 $6,811 $4,760 $— $— $— $— $17,613 
Construction-land development (1)
Risk Rating
Pass$— $484 $1,505 $— $— $— $— $1,989 
Substandard— — — 11,549 — — — 11,549 
Total construction-land development$— $484 $1,505 $11,549 $— $— $— $13,538 
Land
Risk Rating
Pass$10,433 $9,568 $3,851 $5,851 $2,998 $2,458 $273 $35,432 
Watch— — — 299 — 462 — 761 
Total land$10,433 $9,568 $3,851 $6,150 $2,998 $2,920 $273 $36,193 
Home equity and second mortgage
Risk Rating
Pass$1,334 $5,314 $3,956 $1,579 $241 $2,230 $32,184 $46,838 
Watch— — — — — 10 30 40 
Substandard— — — — — 58 575 633 
Total home equity and second mortgage$1,334 $5,314 $3,956 $1,579 $241 $2,298 $32,789 $47,511 
Term Loans Amortized Cost Basis by Origination Fiscal Year
Type20252024202320222021PriorRevolving LoansTotal Loans Receivable
Other consumer
Risk Rating
Pass$668 $467 $404 $85 $48 $426 $47 $2,145 
Watch— — — — — 8 — 8 
Substandard— — — — — — 23 $23 
Total other consumer$668 $467 $404 $85 $48 $434 $70 $2,176 
Current period gross write-offs$2 $1 $— $— $— $— $1 $4 
Commercial business
Risk Rating
Pass$6,859 $13,771 $17,969 $28,520 $6,257 $9,835 $41,208 $124,419 
Special Mention— — — 199 315 211 — 725 
Substandard— — 160 148 14 575 254 1,151 
Doubtful— 202 — — — — — 202 
Total commercial business$6,859 $13,973 $18,129 $28,867 $6,586 $10,621 $41,462 $126,497 
Current period gross write-offs$— $— $— $241 $— $— $— $241 
SBA PPP
Risk Rating
Pass$— $— $— $— $101 $— $— $101 
Total SBA PPP$— $— $— $— $101 $— $— $101 
Total loans receivable, gross (1)
Risk Rating
Pass$109,540 $145,533 $232,385 $305,064 $162,282 $361,830 $83,367 $1,400,001 
Watch— 1,469 7,039 2,946 2,446 11,555 30 25,485 
Special Mention— — — 5,063 315 1,364 — 6,742 
Substandard— — 1,941 11,697 9,718 8,163 852 32,371 
Doubtful— 202 — — — — — 202 
Total loans receivable$109,540 $147,204 $241,365 $324,770 $174,761 $382,912 $84,249 $1,464,801 
Current period gross charge-off$2 $1 $— $241 $— $— $1 $245 
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