v3.25.1
Loans Receivable And Allowance For Credit Losses
 6 Months Ended
Mar. 31, 2025
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss [Abstract]  
Loans Receivable And Allowance For Credit Losses LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES
Loans receivable, net at the dates presented is summarized as follows:
March 31, 2025September 30, 2024
(Dollars in thousands)
One- to four-family:
Originated$3,863,882 $3,941,952 
Correspondent purchased2,117,232 2,212,587 
Bulk purchased119,914 127,161 
Construction16,782 22,970 
Total6,117,810 6,304,670 
Commercial:
Commercial real estate1,340,539 1,191,624 
Commercial and industrial 135,884 129,678 
Construction191,904 187,676 
Total1,668,327 1,508,978 
Consumer:
Home equity99,049 99,988 
Other9,434 9,615 
Total108,483 109,603 
Total loans receivable7,894,620 7,923,251 
Less:
ACL23,970 23,035 
Deferred loan fees/discounts30,276 30,336 
Premiums/deferred costs(35,531)(37,458)
$7,875,905 $7,907,338 
Lending Practices and Underwriting Standards - The Bank originates one- to four-family loans, originates and participates in commercial loans, and originates consumer loans primarily secured by one- to four-family residential properties. The Bank has historically purchased one- to four-family loans from correspondent lenders, but during the prior fiscal year, the Bank suspended its one- to four-family correspondent lending channels for the foreseeable future.

One- to four-family loans - Full documentation to support an applicant's credit and income, and sufficient funds to cover all applicable fees and reserves at closing, are required on all loans. Properties securing one- to four-family loans are appraised by either staff appraisers or fee appraisers, both of which are independent of the loan origination function.

The underwriting standards for loans purchased from correspondent lenders were generally similar to the Bank's internal underwriting standards. The underwriting of loans purchased from correspondent lenders was performed by the Bank's underwriters on a loan-by-loan basis.

The Bank also originates owner-occupied construction-to-permanent loans secured by one- to four-family residential real estate. Construction draw requests and the supporting documentation are reviewed and approved by designated personnel. The Bank also performs regular documented inspections of the construction project to ensure the funds are being used for the intended purpose and the project is being completed according to the plans and specifications provided.

Commercial loans - The Bank's commercial loan portfolio includes loans originated by the Bank or in participation with a lead bank. For commercial participation loans, the Bank performs the same underwriting procedures as if the loan was originated by the Bank.

When underwriting a commercial real estate or commercial construction loan, several factors are considered, such as the income producing potential of the property, cash equity provided by the borrower, the financial strength of the borrower, managerial expertise of the borrower or tenant, feasibility studies, lending experience with the borrower and the marketability of the property. At the time of origination, loan-
to-value ("LTV") ratios on commercial real estate loans generally do not exceed 85% of the appraised value of the property securing the loans and the minimum debt service coverage ratio ("DSCR") is generally 1.15x. The Bank generally requires a guaranty on all commercial real estate loans, but for an experienced borrower with a strong DSCR and low LTV ratio, the Bank may allow the guaranty percentage to be reduced or phased out, or the Bank may originate the loan as a non-recourse loan.

For commercial construction loans, LTV ratios generally do not exceed 80% of the projected appraised value of the property securing the loans and the minimum DSCR is generally 1.15x, but it applies to the projected cash flows, and the borrower must have successful experience with the construction and operation of properties similar to the subject property. Appraisals on properties securing these loans are performed by independent state certified fee appraisers. For construction loans, guaranties are typically required during the period of construction. After construction is complete, for select experienced borrowers that have a strong DSCR and low LTV ratio, the guaranty may be reduced or phased out when the property meets certain performance metrics. Additionally, the Bank generally requires the borrower to contribute equity at the start of a project and prior to any Bank funding.

The Bank's commercial and industrial loans are generally made to borrowers and secured by assets located in the Bank's market areas and are underwritten on the basis of the borrower's ability to service the debt from income. Working capital loans are primarily collateralized by short-term assets whereas term loans are primarily collateralized by longer-term assets. In general, commercial and industrial loans involve different types of credit risk than commercial real estate loans due to the nature of the loans and the type of collateral securing the loans. As a result of these complexities, variables and risks, commercial and industrial loans generally require evaluation of different metrics and factors before origination and require more monitoring and servicing after origination than other types of loans.

Management regularly monitors the level of risk in the entire commercial loan portfolio, including concentrations in factors such as collateral types, geographic locations, tenant brand name, borrowing relationships, and, in the case of participation loans, lending relationships, among other factors. Commercial loans that have an outstanding balance of $1.5 million or more, or borrowing relationships with a total relationship exposure of $5.0 million or more are reviewed no less often than annually to monitor financial performance. The annual reviews include evaluating updated financials, as well as performing stress tests to measure the ability of the borrowers to withstand certain stress scenarios such as interest rate increases, revenue decreases and expense increases.

Consumer loans - The Bank offers a variety of consumer loans, the majority of which are home equity loans and lines of credit for which the Bank also has the first mortgage or the first lien position.

The underwriting standards for consumer loans include a determination of an applicant's payment history on other debts and an assessment of an applicant's ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of an applicant is a primary consideration, the underwriting process also includes a comparison of the value of the security in relation to the proposed loan amount.
Credit Quality Indicators - Based on the Bank's lending emphasis and underwriting standards, management has segmented the loan portfolio into three segments: (1) one- to four-family; (2) consumer; and (3) commercial. These segments are further divided into classes for purposes of providing disaggregated credit quality information about the loan portfolio. The classes are: one- to four-family - originated, one- to four-family - correspondent purchased, one- to four-family - bulk purchased, consumer - home equity, consumer - other, commercial - commercial real estate, and commercial - commercial and industrial. One- to four-family construction loans are included in the originated class and commercial construction loans are included in the commercial real estate class. As part of the on-going monitoring of the credit quality of the Company's loan portfolio, management tracks certain credit quality indicators including trends related to loan classification and delinquency status.
Loan Classification - In accordance with the Bank's asset classification policy, management regularly reviews the problem loans in the Bank's portfolio to determine whether any require classification. Loan classifications are defined as follows:
•Special mention - These loans are performing loans on which known information about the collateral pledged or the possible credit problems of the borrower(s) have caused management to have doubts as to the ability of the borrower(s) to comply with present loan repayment terms and which may result in the future inclusion of such loans in the nonaccrual loan categories.
•Substandard - A loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans include those characterized by the distinct possibility the Bank will sustain some loss if the deficiencies are not corrected.
•Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses present make collection or liquidation in full on the basis of currently existing facts and conditions and values highly questionable and improbable.
•Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as assets on the books is not warranted.
The following tables set forth, as of the dates indicated, the amortized cost of loans by class of financing receivable, year of origination or most recent credit decision, and loan classification. Amortized cost is the amount of unpaid principal, net of undisbursed loan funds, unamortized premiums and discounts, and deferred fees and costs. All revolving lines of credit and revolving lines of credit converted to term loans are presented separately, regardless of origination year. Loans classified as doubtful or loss are individually evaluated for loss. At March 31, 2025 and September 30, 2024, there were no loans classified as doubtful, and all loans classified as loss were fully charged-off.
March 31, 2025
Revolving
Line of
CurrentFiscalFiscalFiscalFiscalRevolvingCredit
FiscalYearYearYearYearPriorLine ofConverted
Year2024202320222021YearsCreditto TermTotal
(Dollars in thousands)
One- to four-family:
Originated
Pass$108,626 $238,584 $311,276 $556,375 $777,713 $1,852,621 $— $— $3,845,195 
Special Mention— — 1,161 1,005 843 5,966 — — 8,975 
Substandard— — 482 84 214 11,393 — — 12,173 
Correspondent purchased
Pass— 786 313,915 465,188 551,402 802,496 — — 2,133,787 
Special Mention— — 986 513 371 948 — — 2,818 
Substandard— — 275 404 538 4,398 — — 5,615 
Bulk purchased
Pass— — — — — 117,765 — — 117,765 
Special Mention— — — — — — — — — 
Substandard— — — — — 2,552 — — 2,552 
108,626 239,370 628,095 1,023,569 1,331,081 2,798,139 — — 6,128,880 
Commercial:
Commercial real estate
Pass250,522 312,139 404,683 227,779 120,081 149,210 7,591 — 1,472,005 
Special Mention8,270 — — — — 82 — — 8,352 
Substandard— 142 42,008 — 111 3,650 50 — 45,961 
Commercial and industrial
Pass13,600 38,513 28,892 15,581 6,590 2,371 28,390 — 133,937 
Special Mention95 190 30 58 — — 526 — 899 
Substandard— 227 — 107 — 82 638 — 1,054 
272,487 351,211 475,613 243,525 126,782 155,395 37,195 — 1,662,208 
Consumer:
Home equity
Pass2,988 6,107 4,047 4,143 1,337 2,483 69,870 7,760 98,735 
Special Mention— 35 20 — — — — 107 162 
Substandard— — — — — 9 340 107 456 
Other
Pass2,732 2,809 1,859 1,175 267 84 398 — 9,324 
Special Mention— — — — — — — — — 
Substandard— 50 14 43 — 2 1 — 110 
5,720 9,001 5,940 5,361 1,604 2,578 70,609 7,974 108,787 
Total$386,833 $599,582 $1,109,648 $1,272,455 $1,459,467 $2,956,112 $107,804 $7,974 $7,899,875 
September 30, 2024
Revolving
Line of
FiscalFiscalFiscalFiscalFiscalRevolvingCredit
YearYearYearYearYearPriorLine ofConverted
20242023202220212020YearsCreditto TermTotal
(Dollars in thousands)
One- to four-family:
Originated
Pass$241,765 $325,492 $578,275 $809,643 $521,647 $1,447,237 $— $— $3,924,059 
Special Mention— 295 1,229 1,982 772 9,565 — — 13,843 
Substandard— 658 49 468 1,398 9,571 — — 12,144 
Correspondent purchased
Pass798 325,384 482,103 570,970 225,650 623,496 — — 2,228,401 
Special Mention— 993 659 658 398 977 — — 3,685 
Substandard— — 1,662 265 — 5,130 — — 7,057 
Bulk purchased
Pass— — — — — 124,076 — — 124,076 
Special Mention— — — — — — — — — 
Substandard— — — — — 3,514 — — 3,514 
242,563 652,822 1,063,977 1,383,986 749,865 2,223,566 — — 6,316,779 
Commercial:
Commercial real estate
Pass326,158 400,649 284,493 135,935 74,174 110,309 23,865 — 1,355,583 
Special Mention12,440 2,543 — — 92 1,094 — — 16,169 
Substandard142 827 — — 647 636 50 — 2,302 
Commercial and industrial
Pass46,335 32,112 18,131 8,075 1,350 2,051 20,876 — 128,930 
Special Mention401 — — — — — 12 — 413 
Substandard227 — — — — 82 26 — 335 
385,703 436,131 302,624 144,010 76,263 114,172 44,829 — 1,503,732 
Consumer:
Home equity
Pass7,331 4,377 4,575 1,437 814 2,127 73,020 5,895 99,576 
Special Mention— — — — — — 45 281 326 
Substandard— 20 — — — 24 120 181 345 
Other
Pass4,112 2,737 1,697 385 101 95 346 — 9,473 
Special Mention— — — — — — — — — 
Substandard80 14 44 — 4 — — — 142 
11,523 7,148 6,316 1,822 919 2,246 73,531 6,357 109,862 
Total$639,789 $1,096,101 $1,372,917 $1,529,818 $827,047 $2,339,984 $118,360 $6,357 $7,930,373 
Delinquency Status - The following tables set forth, as of the dates indicated, the amortized cost of current loans, loans 30 to 89 days delinquent, and loans 90 or more days delinquent or in foreclosure ("90+/FC"), by class of financing receivable and year of origination or most recent credit decision as of the dates indicated. All revolving lines of credit and revolving lines of credit converted to term loans are presented separately, regardless of origination year.
March 31, 2025
Revolving
Line of
CurrentFiscalFiscalFiscalFiscalRevolvingCredit
FiscalYearYearYearYearPriorLine ofConverted
Year2024202320222021YearsCreditto TermTotal
(Dollars in thousands)
One- to four-family:
Originated
Current$108,626 $238,270 $312,625 $556,427 $777,828 $1,861,709 $— $— $3,855,485 
30-89— 314 294 953 418 6,073 — — 8,052 
90+/FC— — — 84 524 2,198 — — 2,806 
Correspondent purchased
Current— 786 314,901 465,701 551,531 804,342 — — 2,137,261 
30-89— — — 241 515 2,209 — — 2,965 
90+/FC— — 275 163 265 1,291 — — 1,994 
Bulk purchased
Current— — — — — 119,513 — — 119,513 
30-89— — — — — 181 — — 181 
90+/FC— — — — — 623 — — 623 
108,626 239,370 628,095 1,023,569 1,331,081 2,798,139 — — 6,128,880 
Commercial:
Commercial real estate
Current258,792 312,139 446,201 227,779 120,081 147,948 7,591 — 1,520,531 
30-89— — — — — 2,471 — — 2,471 
90+/FC— 142 490 — 111 2,523 50 — 3,316 
Commercial and industrial
Current13,695 38,704 28,922 15,746 6,590 2,371 29,137 — 135,165 
30-89— — — — — — 348 — 348 
90+/FC— 226 — — — 82 69 — 377 
272,487 351,211 475,613 243,525 126,782 155,395 37,195 — 1,662,208 
Consumer:
Home equity
Current2,988 6,142 4,052 4,129 1,337 2,336 69,745 7,862 98,591 
30-89— — 15 14 — 153 155 24 361 
90+/FC— — — — — 3 310 88 401 
Other
Current2,721 2,801 1,858 1,210 209 84 397 — 9,280 
30-8911 8 1 1 58 — 2 — 81 
90+/FC— 50 14 7 — 2 — — 73 
5,720 9,001 5,940 5,361 1,604 2,578 70,609 7,974 108,787 
Total$386,833 $599,582 $1,109,648 $1,272,455 $1,459,467 $2,956,112 $107,804 $7,974 $7,899,875 
September 30, 2024
Revolving
Line of
FiscalFiscalFiscalFiscalFiscalRevolvingCredit
YearYearYearYearYearPriorLine ofConverted
20242023202220212020YearsCreditto TermTotal
(Dollars in thousands)
One- to four-family:
Originated
Current$241,765 $326,211 $578,430 $811,455 $521,550 $1,459,500 $— $— $3,938,911 
30-89— 64 1,074 638 1,666 5,422 — — 8,864 
90+/FC— 170 49 — 601 1,451 — — 2,271 
Correspondent purchased
Current798 326,377 482,598 571,182 226,048 624,961 — — 2,231,964 
30-89— — 164 446 — 2,479 — — 3,089 
90+/FC— — 1,662 265 — 2,163 — — 4,090 
Bulk purchased
Current— — — — — 125,982 — — 125,982 
30-89— — — — — 69 — — 69 
90+/FC— — — — — 1,539 — — 1,539 
242,563 652,822 1,063,977 1,383,986 749,865 2,223,566 — — 6,316,779 
Commercial:
Commercial real estate
Current338,511 403,193 284,493 135,932 74,266 110,448 23,055 — 1,369,898 
30-89229 807 — 3 — 1,094 860 — 2,993 
90+/FC— 19 — — 647 497 — — 1,163 
Commercial and industrial
Current46,736 32,112 17,990 8,052 1,350 2,051 20,914 — 129,205 
30-89227 — 141 23 — — — — 391 
90+/FC— — — — — 82 — — 82 
385,703 436,131 302,624 144,010 76,263 114,172 44,829 — 1,503,732 
Consumer:
Home equity
Current7,331 4,378 4,540 1,437 814 2,133 72,721 6,084 99,438 
30-89— — 35 — — — 349 87 471 
90+/FC— 19 — — — 18 115 186 338 
Other
Current4,109 2,728 1,641 327 101 95 344 — 9,345 
30-893 9 100 58 — — 2 — 172 
90+/FC80 14 — — 4 — — — 98 
11,523 7,148 6,316 1,822 919 2,246 73,531 6,357 109,862 
Total$639,789 $1,096,101 $1,372,917 $1,529,818 $827,047 $2,339,984 $118,360 $6,357 $7,930,373 
Gross Charge-Offs - The following tables present gross charge-offs, for the periods indicated, by class of financing receivable for the year of origination or most recent credit decision.
For the Six Months Ended March 31, 2025
Revolving
Lines
CurrentFiscalFiscalFiscalFiscalRevolvingof Credit
FiscalYearYearYearYearPriorLines ofConverted to
Year2024202320222021YearsCreditTermTotal
(Dollars in thousands)
One- to four-family:
Originated$— $— $— $— $— $— $— $— $— 
Correspondent purchased— — — — — — — — — 
Bulk purchased— — — — — 113 — — 113 
— — — — — 113 — — 113 
Commercial:
Commercial real estate— — — — — — — — — 
Commercial and industrial— — — — — — — — — 
— — — — — — — — — 
Consumer:
Home equity8 12 — — — — — — 20 
Other— 1 4 — — — 2 — 7 
8 13 4 — — — 2 — 27 
Total$8 $13 $4 $— $— $113 $2 $— $140 

For the Six Months Ended March 31, 2024
Revolving
Lines
FiscalFiscalFiscalFiscalFiscalRevolvingof Credit
YearYearYearYearYearPriorLines ofConverted to
20242023202220212020YearsCreditTermTotal
(Dollars in thousands)
One- to four-family:
Originated$— $— $— $— $— $— $— $— $— 
Correspondent purchased— — — — — — — — — 
Bulk purchased— — — — — — — — — 
— — — — — — — — — 
Commercial:
Commercial real estate— — — — — 10 — — 10 
Commercial and industrial— — — — — — — — — 
— — — — — 10 — — 10 
Consumer:
Home equity2 1 — — — — — — 3 
Other— 8 — — — 4 — — 12 
2 9 — — — 4 — — 15 
Total$2 $9 $— $— $— $14 $— $— $25 
Delinquent and Nonaccrual Loans - The following tables present the amortized cost, at the dates indicated, by class, of loans 30 to 89 days delinquent, loans 90 or more days delinquent or in foreclosure, total delinquent loans, current loans, and total loans. At March 31, 2025 and September 30, 2024, all loans 90 or more days delinquent were on nonaccrual status.
March 31, 2025
90 or More DaysTotalTotal
30 to 89 DaysDelinquent orDelinquentCurrentAmortized
Delinquentin ForeclosureLoansLoansCost
(Dollars in thousands)
One- to four-family:
Originated$8,052 $2,806 $10,858 $3,855,485 $3,866,343 
Correspondent purchased2,965 1,994 4,959 2,137,261 2,142,220 
Bulk purchased181 623 804 119,513 120,317 
Commercial:
Commercial real estate2,471 3,316 5,787 1,520,531 1,526,318 
Commercial and industrial 348 377 725 135,165 135,890 
Consumer:
Home equity361 401 762 98,591 99,353 
Other81 73 154 9,280 9,434 
$14,459 $9,590 $24,049 $7,875,826 $7,899,875 

September 30, 2024
90 or More DaysTotalTotal
30 to 89 DaysDelinquent orDelinquentCurrentAmortized
Delinquentin ForeclosureLoansLoansCost
(Dollars in thousands)
One- to four-family:
Originated$8,864 $2,271 $11,135 $3,938,911 $3,950,046 
Correspondent purchased3,089 4,090 7,179 2,231,964 2,239,143 
Bulk purchased69 1,539 1,608 125,982 127,590 
Commercial:
Commercial real estate2,993 1,163 4,156 1,369,898 1,374,054 
Commercial and industrial 391 82 473 129,205 129,678 
Consumer:
Home equity471 338 809 99,438 100,247 
Other172 98 270 9,345 9,615 
$16,049 $9,581 $25,630 $7,904,743 $7,930,373 

The amortized cost of mortgage loans secured by residential real estate for which formal foreclosure proceedings were in process as of March 31, 2025 and September 30, 2024 was $2.5 million and $1.6 million, respectively, which are included in loans 90 or more days delinquent or in foreclosure in the tables above. The carrying value of residential OREO held as a result of obtaining physical possession upon completion of a foreclosure or through completion of a deed in lieu of foreclosure was $55 thousand at September 30, 2024. There was no residential OREO held at March 31, 2025.
The following table presents the amortized cost at March 31, 2025 and September 30, 2024, by class, of loans classified as nonaccrual. Nonaccrual loans with no ACL were individually evaluated for loss and any losses have been charged off.
March 31, 2025September 30, 2024
Nonaccrual LoansNonaccrual Loans with No ACLNonaccrual LoansNonaccrual Loans with No ACL
(Dollars in thousands)
One- to four-family:
Originated$2,806 $982 $2,271 $764 
Correspondent purchased1,994 507 4,090 182 
Bulk purchased623 172 1,539 812 
Commercial:
Commercial real estate4,443 3,849 1,495 901 
Commercial and industrial 521 521 335 335 
Consumer:
Home equity401 14 338 — 
Other73 14 98 16 
$10,861 $6,059 $10,166 $3,010 

Loan Modifications - The following tables present the amortized cost basis of loans, as of the dates indicated, that were both experiencing financial difficulties and modified during the periods noted, by class of financing receivable and by type of modification. Also presented in the tables is the percentage of the amortized cost basis of loans, at the dates indicated, that were modified to borrowers experiencing financial difficulties as compared to the amortized cost basis of each class of financing receivable during the periods noted. During the three and six months ended March 31, 2025 and 2024, there were no charge-offs related to loans modified during those periods. The Company has not committed to lend additional amounts to borrowers included in these tables.
For the Three Months Ended March 31, 2025
Term
ExtensionTotal
andClass of
PaymentTermPaymentFinancing
DelayExtensionDelayTotalReceivable
(Dollars in thousands)
One- to four-family:
Originated$236 $1,344 $651 $2,231 0.06 %
Correspondent purchased— 513 187 700 0.03 
Bulk purchased— — — — — 
236 1,857 838 2,931 0.05 
Commercial:
Commercial real estate8,189 — — 8,189 0.54 
Commercial and industrial— 838 — 838 0.62 
8,189 838 — 9,027 0.54 
Consumer loans:
Home equity— 35 — 35 0.03 
Other— — — — — 
— 35 — 35 0.03 
Total$8,425 $2,730 $838 $11,993 0.15 
For the Six Months Ended March 31, 2025
Term
ExtensionTotal
andClass of
PaymentTermPaymentFinancing
DelayExtensionDelayTotalReceivable
(Dollars in thousands)
One- to four-family:
Originated$353 $2,255 $816 $3,424 0.09 %
Correspondent purchased— 513 187 700 0.03 
Bulk purchased— — — — — 
353 2,768 1,003 4,124 0.07 
Commercial:
Commercial real estate8,189 — — 8,189 0.54 
Commercial and industrial— 838 — 838 0.62 
8,189 838 — 9,027 0.54 
Consumer loans:
Home equity20 34 — 54 0.05 
Other— — — — — 
20 34 — 54 0.05 
Total$8,562 $3,640 $1,003 $13,205 0.17 

For the Three Months Ended March 31, 2024For the Six Months Ended March 31, 2024
TermTerm
ExtensionTotalExtensionTotal
andClass ofandClass of
PaymentFinancingPaymentFinancing
DelayReceivableDelayReceivable
(Dollars in thousands)
One- to four-family:
Originated$3,429 0.09 %$7,385 0.19 %
Correspondent purchased845 0.04 1,744 0.07 
Bulk purchased— — — — 
4,275 0.07 9,129 0.14 
Commercial:
Commercial real estate238 0.02 238 0.02 
Commercial and industrial455 0.41 455 0.41 
693 0.05 693 0.05 
Consumer loans:
Home equity— — — — 
Other— — — — 
— — — — 
Total$4,968 0.06 $9,822 0.12 
Financial effect of loan modifications - The tables below present the financial effect of loan modifications during the three and six months ended March 31, 2025 and 2024, including the weighted average payment delay and weighted average term extension.
For the Three Months Ended March 31, 2025For the Six Months Ended March 31, 2025
PaymentTermPaymentTerm
DelayExtensionDelayExtension
One- to four-family:
Originated8 months20 months8 months18 months
Correspondent purchased9 months34 months9 months34 months
Commercial:
Commercial real estate9 monthsN/A9 monthsN/A
Commercial and industrialN/A3 monthsN/A3 months
Consumer:
Consumer home equityN/A14 months7 months14 months

For the Three Months Ended March 31, 2024For the Six Months Ended March 31, 2024
PaymentTermPaymentTerm
DelayExtensionDelayExtension
One- to four-family:
Originated4 months39 months4 months31 months
Correspondent purchased5 months20 months4 months17 months
Commercial:
Commercial real estate26 months26 months26 months26 months
Commercial and industrial6 months6 months6 months6 months

Performance of loan modifications - The Company closely monitors the performance of loans modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans, based on amortized cost, by class of financing receivable as of March 31, 2025, on loans modified during the previous 12-months for borrowers experiencing financial difficulty that were delinquent as of March 31, 2025, or as of March 31, 2024 on loans modified on or after October 1, 2023 (the day the Company adopted ASU 2022-02) through March 31, 2024 for borrowers experiencing financial difficulty, that were delinquent as of March 31, 2024. All other loans modified during the periods noted were current as of March 31, 2025 and March 31, 2024.
As of March 31, 2025As of March 31, 2024
30 to 89 Days
Delinquent		90 or More Days
Delinquent or in Foreclosure		Total
Delinquent Loans		30 to 89 Days
Delinquent		90 or More Days
Delinquent or in Foreclosure		Total
Delinquent Loans
(Dollars in thousands)
One- to four-family:
  Originated$567 $428 $995 $653 $76 $729 
  Correspondent purchased— — — — — — 
Bulk purchased— — — — — — 
Commercial:
Commercial real estate— — — — — — 
Commercial and industrial— — — — — — 
Consumer loans:
Home equity— 88 88 — — — 
Other— — — — — — 
$567 $516 $1,083 $653 $76 $729 
The following tables present the amortized cost basis of loans that had a payment default during the three and six months ended March 31, 2025 and were modified to borrowers experiencing financial difficulty in the 12-months prior to the default date, or loans that had a payment default during the three and six months ended March 31, 2024 and were modified to borrowers experiencing financial difficulty on or after October 1, 2023 (the day the Company adopted ASU 2022-02) prior to the default date, by class of financing receivable and by type of modification. The Company considers "default" to mean 90 days or more past due under the modified terms.
For the Three Months Ended March 31, 2025For the Six Months Ended March 31, 2025
TermTerm
ExtensionExtension
andand
PaymentTermPaymentPaymentTermPayment
DelayExtensionDelayTotalDelayExtensionDelayTotal
(Dollars in thousands)
One- to four-family:
  Originated$84 $193 $151 $428 $84 $193 $151 $428 
  Correspondent purchased— — 187 187 — — 428 428 
  Bulk purchased— — — — — — — — 
Commercial:
Commercial real estate— — 192 192 — — 192 192 
Commercial and industrial— — 227 227 — — 227 227 
Consumer loans:
Home equity88 — — 88 88 — — 88 
Other— — — — — — — — 
$172 $193 $757 $1,122 $172 $193 $998 $1,363 

For the Three Months Ended March 31, 2024For the Six Months Ended March 31, 2024
TermTerm
ExtensionExtension
andand
PaymentPayment
DelayDelay
(Dollars in thousands)
One- to four-family:
  Originated$93 $93 
  Correspondent purchased— — 
  Bulk purchased— — 
Commercial:
Commercial real estate— — 
Commercial and industrial— — 
Consumer loans:
Home equity— — 
Other— — 
$93 $93 
Allowance for Credit Losses - The following tables summarizes ACL activity, by loan portfolio segment, for the periods presented.
For the Three Months Ended March 31, 2025
One- to Four-Family
CorrespondentBulk
OriginatedPurchasedPurchasedTotalCommercialConsumerTotal
(Dollars in thousands)
Beginning balance$2,043 $1,583 $131 $3,757 $20,999 $241 $24,997 
Charge-offs— — (113)(113)— (10)(123)
Recoveries2 — — 2 2 5 9 
Provision for credit losses(50)(137)103 (84)(825)(4)(913)
Ending balance$1,995 $1,446 $121 $3,562 $20,176 $232 $23,970 
For the Six Months Ended March 31, 2025
One- to Four-Family
CorrespondentBulk
OriginatedPurchasedPurchasedTotalCommercialConsumerTotal
(Dollars in thousands)
Beginning balance$1,666 $1,861 $146 $3,673 $19,154 $208 $23,035 
Charge-offs— — (113)(113)— (27)(140)
Recoveries5 — — 5 22 6 33 
Provision for credit losses324 (415)88 (3)1,000 45 1,042 
Ending balance$1,995 $1,446 $121 $3,562 $20,176 $232 $23,970 
For the Three Months Ended March 31, 2024
One- to Four-Family
CorrespondentBulk
OriginatedPurchasedPurchasedTotalCommercialConsumerTotal
(Dollars in thousands)
Beginning balance$2,094 $2,948 $206 $5,248 $18,678 $252 $24,178 
Charge-offs— — — — (10)(8)(18)
Recoveries3 — — 3 — 15 18 
Provision for credit losses(25)(155)(11)(191)662 (15)456 
Ending balance$2,072 $2,793 $195 $5,060 $19,330 $244 $24,634 
For the Six Months Ended March 31, 2024
One- to Four-Family
CorrespondentBulk
OriginatedPurchasedPurchasedTotalCommercialConsumerTotal
(Dollars in thousands)
Beginning balance$2,149 $2,972 $207 $5,328 $18,180 $251 $23,759 
Adoption of ASU 2022-023 1 14 18 2 — 20 
Balance at October 1, 20232,152 2,973 221 5,346 18,182 251 23,779 
Charge-offs— — — — (10)(15)(25)
Recoveries8 — — 8 1 15 24 
Provision for credit losses(88)(180)(26)(294)1,157 (7)856 
Ending balance$2,072 $2,793 $195 $5,060 $19,330 $244 $24,634 
The key assumptions in the Company's ACL model include the economic forecast, the forecast and reversion to mean time periods, and prepayment and curtailment assumptions. Management also considered certain qualitative factors when evaluating the adequacy of the ACL at March 31, 2025. The key assumptions utilized in estimating the Company's ACL at March 31, 2025 are discussed below.
•Economic Forecast - Management considered several economic forecasts provided by a third party and selected an economic forecast that was the most appropriate considering the facts and circumstances at March 31, 2025. At March 31, 2025, management selected a slightly worse economic scenario to use in the discounted cash flow model than at December 31, 2024 to account for current economic conditions and future economic uncertainty related to recently issued and proposed federal government policies. The forecasted economic indices applied to the model at March 31, 2025 were the national unemployment rate, changes in commercial real estate price index, changes in home values, and changes in the U.S. gross domestic product. The economic index most impactful to all loan pools within the model at March 31, 2025 was the national unemployment rate. The forecasted national unemployment rate in the economic scenario selected by management at March 31, 2025 had the national unemployment rate remaining at 5.3% through March 31, 2026, which was the end of our four-quarter forecast time period.
•Forecast and reversion to mean time periods - The forecasted time period and the reversion to mean time period were each four quarters for all of the economic indices at March 31, 2025.
•Prepayment and curtailment assumptions - The assumptions used at March 31, 2025 were generally based on actual historical prepayment and curtailment speeds, adjusted by management as deemed necessary. The prepayment and curtailment assumptions vary for each respective loan pool in the model.
•Qualitative factors - Management applied qualitative factors at March 31, 2025 to account for large dollar commercial loan concentrations and potential risk of loss in market value for newer one- to four-family loans. These qualitative factors were applied to account for credit risks not fully reflected in the discounted cash flow model.
◦The Company's commercial real estate and construction loans generally have low LTV ratios and strong DSCRs which serve as indicators that losses in the commercial real estate and construction loan portfolios might be unlikely; however, because there is uncertainty surrounding the nature, timing and amount of expected losses, management believes that in the event of a realized loss within the large dollar commercial loan pools, the magnitude of such a loss could be significant. The large dollar commercial loan concentration qualitative factor addresses the risk associated with a large dollar relationship deteriorating due to a loss event. As part of its analysis, management considered external data including historical commercial real estate price index trending information from a variety of sources to help determine the amount of this qualitative factor.
◦For one- to four-family loans, management believes there is potential risk of loss in market value for newer originations where property values have not experienced price appreciation like more seasoned loans in our portfolio and applied a qualitative factor to account for this risk. To determine the appropriate amount of the one- to four-family loan qualitative factor as of March 31, 2025, management considered external historical home price index trending information, along with the Bank's recent origination/purchase activity, historical loan loss experience and portfolio balance trending, the one-to four-family loan portfolio composition with regard to loan size, and management's knowledge of the Bank's loan portfolio and the one- to four-family lending industry.

Reserve for Off-Balance Sheet Credit Exposures - At March 31, 2025 and September 30, 2024, the Bank's off-balance sheet credit exposures totaled $831.9 million and $826.5 million, respectively.

The following table summarizes the change in reserve for off-balance sheet credit exposures during the periods indicated. The provision for the three months ended March 31, 2025 was due primarily to an increase in the balance of commercial off-balance sheet credit exposures, mainly related to commitments that are expected to fund during the June 30, 2025 quarter. The increase in the reserve for off-balance sheet credit exposures was entirely offset by the release of provision for credit losses related to the ACL for loans, resulting in no impact to the provision for credit losses for the quarter ended March 31, 2025. The increase in the reserve for off-balance sheet credit exposures as of March 31, 2025 compared to March 31, 2024 was due primarily to an increase in commercial off-balance sheet credit exposures between periods.
For the Three Months Ended For the Six Months Ended
March 31, 2025March 31, 2024March 31, 2025March 31, 2024
(Dollars in thousands)
Beginning balance$4,725 $3,834 $6,003 $4,095 
Adoption of ASU 2022-02— — — 16 
Provision for credit losses913 (155)(365)(432)
Ending balance$5,638 $3,679 $5,638 $3,679