v3.26.1
Allowance for Losses on Loans
 6 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Allowance for Losses on Loans Allowance for Losses on Loans
For a detailed discussion of loans and credit quality, including accounting policies and the CECL methodology used to estimate the allowance for credit losses, see Note A "Summary of Significant Accounting Policies."

The following tables summarize the activity in the allowance for loan losses by loan portfolio segment and class. 
Three Months Ended March 31, 2026Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers1
Ending Allowance
 (In thousands)
Commercial loans
   Multi-family$25,843 $(81)$— $161 $25,923 
   Commercial real estate42,105 — 7 (609)41,503 
   Commercial & industrial62,102 (262)138 6,684 68,662 
   Construction18,475 — — (1,763)16,712 
   Land - acquisition & development7,222 — 7 463 7,692 
      Total commercial loans155,747 (343)152 4,936 160,492 
Consumer loans
   Single-family residential35,847 (31)6 (2,143)33,679 
   Construction - custom455 — 2 (155)302 
   Land - consumer lot loans1,958 — — (137)1,821 
   HELOC2,951 — 1 (102)2,850 
   Consumer2,581 (431)55 601 2,806 
      Total consumer loans43,792 (462)64 (1,936)41,458 
Total ACL - loans$199,539 $(805)$216 $3,000 $201,950 
1Provision & transfer amounts within the table do not include the provision on unfunded commitments of $1,000,000.

Three Months Ended March 31, 2025Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers1
Ending Allowance
 (In thousands)
Commercial loans
   Multi-family$25,997 $— $— $559 $26,556 
   Commercial real estate37,873 (4,392)169 4,819 38,469 
   Commercial & industrial60,474 (236)38 (129)60,147 
   Construction20,903 — — (1,497)19,406 
   Land - acquisition & development7,221 — 8 (526)6,703 
      Total commercial loans152,468 (4,628)215 3,226 151,281 
Consumer loans
   Single-family residential42,117 (338)7 (823)40,963 
   Construction - custom1,219 — — (143)1,076 
   Land - consumer lot loans2,527 — — (112)2,415 
   HELOC3,158 — — 99 3,257 
   Consumer3,033 (477)158 1,003 3,717 
      Total consumer loans52,054 (815)165 24 51,428 
Total ACL - Loans$204,522 $(5,443)$380 $3,250 $202,709 
1Provision & transfer amounts within the table do not include the provision recapture on unfunded commitments of $500,000.
Six Months Ended March 31, 2026Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers1
Ending Allowance
 (In thousands)
Commercial loans
   Multi-family$25,953 $(81)$— $51 $25,923 
   Commercial real estate41,988 — 655 (1,140)41,503 
   Commercial & industrial59,163 (4,458)143 13,814 68,662 
   Construction18,136 — — (1,424)16,712 
   Land - acquisition & development6,894 — 116 682 7,692 
      Total commercial loans152,134 (4,539)914 11,983 160,492 
Consumer loans
   Single-family residential38,880 (82)12 (5,131)33,679 
   Construction - custom610 — 4 (312)302 
   Land - consumer lot loans2,104 — — (283)1,821 
   HELOC3,069 — 1 (220)2,850 
   Consumer2,923 (704)124 463 2,806 
      Total consumer loans47,586 (786)141 (5,483)41,458 
Total ACL - loans$199,720 $(5,325)$1,055 $6,500 $201,950 
 1Provision & transfer amounts within the table do not include provision on unfunded commitments of $1,000,000.
Six Months Ended March 31, 2025Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers1
Ending Allowance
 (In thousands)
Commercial loans
   Multi-family$25,248 $— $— $1,308 $26,556 
   Commercial real estate39,210 (4,555)169 3,645 38,469 
   Commercial & industrial58,748 (593)42 1,950 60,147 
   Construction22,267 — — (2,861)19,406 
   Land - acquisition & development7,900 — 19 (1,216)6,703 
      Total commercial loans153,373 (5,148)230 2,826 151,281 
Consumer loans
   Single-family residential40,523 (338)463 315 40,963 
   Construction - custom1,427 — — (351)1,076 
   Land - consumer lot loans2,564 — — (149)2,415 
   HELOC3,049 — 2 206 3,257 
   Consumer2,817 (742)239 1,403 3,717 
      Total consumer loans50,380 (1,080)704 1,424 51,428 
Total ACL - Loans$203,753 $(6,228)$934 $4,250 $202,709 
1Provision & transfer amounts within the table do not include the provision recapture from unfunded commitments of $1,500,000.
The Company recorded a $4,000,000 provision for credit losses for the three months ended March 31, 2026, compared with $2,750,000 provision for the three months ended March 31, 2025. The provision in the three months ended March 31, 2026 was primarily the result of increased commercial loan originations. The increase in the overall provision included an increase in the reserve for unfunded commitments. The Company recorded a $7,500,000 provision for credit losses for the six months ended March 31, 2026 compared to $2,750,000 for the six months ended March 31, 2025. The current fiscal year to date period also reflects changes to credit quality and increased charge-offs observed in the first quarter. Net charge-offs totaled $589,000 for the three months ended March 31, 2026, compared to $5,063,000 of net charge-offs during the three months ended March 31,
2025. Net charge-offs totaled $4,270,000 for the six months ended March 31, 2026, compared to $5,294,000 during the six months ended March 31, 2025.

Non-performing assets were $131,984,000, or 0.48% of total assets, at March 31, 2026, compared to $143,022,000, or 0.54% of total assets, at September 30, 2025. Non-accrual loans were $123,859,000, or 0.61% of total loans at amortized cost, at March 31, 2026, compared to $128,628,000, or 0.63%, at September 30, 2025. Delinquencies, as a percent of total loans, were 0.78% at March 31, 2026, compared to 0.60% at September 30, 2025.

The Company has an asset quality review function that analyzes its loan portfolio and reports the results of the review to its Board of Directors on a quarterly basis. The single-family residential, HELOC and consumer portfolios are evaluated based on their performance as a pool of loans, since no single loan is individually significant or judged by its risk rating, size or potential risk of loss. The construction, land, multi-family, commercial real estate and commercial and industrial loans are risk rated on a loan by loan basis to determine the relative risk inherent in specific borrowers or loans. Based on that risk rating, the loans are assigned a grade and classified as described in Note D "Loans Receivable."

The following tables provide the amortized cost of loans receivable based on risk rating categories as previously defined.
March 31, 2026Internally Assigned Grade
 PassWatchSpecial MentionSubstandardDoubtfulTotal
 (In thousands, except ratio data)
Loan type
Commercial loans
  Multi-family$4,178,496 $153,077 $183,855 $154,764 $2,407 $4,672,599 
  Commercial real estate3,432,409 46,536 50,132 123,606 — 3,652,683 
  Commercial & industrial2,437,792 113,386 37,460 202,495 — 2,791,133 
  Construction884,657 10,014 56,898 5,388 — 956,957 
  Land - acquisition & development158,640 9,701 — 225 — 168,566 
    Total commercial loans11,091,994 332,714 328,345 486,478 2,407 12,241,938 
Consumer loans
  Single-family residential7,473,143 — — 28,188 — 7,501,331 
  Construction - custom38,107 — 760 — 38,867 
  Land - consumer lot loans76,438 — 325 — 76,763 
  HELOC254,806 — 546 — 255,352 
  Consumer54,483 — 199 — 54,682 
    Total consumer loans7,896,977 — — 30,018 — 7,926,995 
Total$18,988,971 $332,714 $328,345 $516,496 $2,407 $20,168,933 
Total grade as a % of total loans94.1 %1.6 %1.6 %2.6 %— %
September 30, 2025Internally Assigned Grade
 PassSpecial MentionSubstandardDoubtfulLossTotal Gross Loans
 (In thousands, except ratio data)
Loan type
Commercial loans
  Multi-family$4,337,347 $136,817 $154,807 $2,350 $— $4,631,321 
  Commercial real estate3,339,062 61,580 185,527 2,781 — 3,588,950 
  Commercial & industrial2,086,750 44,998 254,591 — 24 2,386,363 
  Construction1,091,682 4,435 8,984 — — 1,105,101 
  Land - acquisition & development139,663 — 259 — — 139,922 
    Total commercial loans10,994,504 247,830 604,168 5,131 24 11,851,657 
Consumer loans
  Single-family residential7,913,120 — 23,811 — — 7,936,931 
  Construction - custom77,483 — 760 — — 78,243 
  Land - consumer lot loans88,613 — 83 — — 88,696 
  HELOC270,874 — 412 — — 271,286 
  Consumer61,406 — 119 — — 61,525 
    Total consumer loans8,411,496 — 25,185 — — 8,436,681 
Total loans$19,406,000 $247,830 $629,353 $5,131 $24 $20,288,338 
Total grade as a % of total gross loans95.7 %1.2 %3.1 %— %— %

The following tables provide information on the amortized cost of loans receivable based on borrower payment activity.

March 31, 2026Performing LoansNon-Performing Loans
 Amount% of Total
Loans		Amount% of Total
Loans
 (In thousands, except ratio data)
Commercial loans
   Multi-family$4,638,214 99.3 %$34,385 0.7 %
   Commercial real estate3,648,001 99.9 4,682 0.1 
   Commercial & industrial2,736,405 98.0 54,728 2.0 
   Construction956,957 100.0 — 0.0 
   Land - acquisition & development168,566 100.0 — — 
      Total commercial loans12,148,143 99.2 93,795 0.8 
Consumer loans
   Single-family residential7,473,143 99.6 28,188 0.4 
   Construction - custom38,107 98.0 760 2.0 
   Land - consumer lot loans76,438 99.6 325 0.4 
   HELOC254,759 99.8 593 0.2 
   Consumer54,484 99.6 198 0.4 
      Total consumer loans7,896,931 99.6 30,064 0.4 
Total loans$20,045,074 99.4 %$123,859 0.6 %
September 30, 2025Performing LoansNon-Performing Loans
 Amount% of Total
Loans		Amount% of Total
Loans
 (In thousands, except ratio data)
Commercial loans
   Multi-family$4,612,200 99.6 %$19,121 0.4 %
   Commercial real estate3,518,978 98.1 69,972 1.9 
   Commercial & industrial2,375,316 99.5 11,047 0.5 
   Construction1,101,701 99.7 3,400 0.3 
   Land - acquisition & development139,922 100.0 — — 
      Total commercial loans11,748,117 99.1 103,540 0.9 
Consumer loans
   Single-family residential7,913,190 99.7 23,741 0.3 
   Construction - custom77,483 99.0 760 1.0 
   Land - consumer lot loans88,673 100.0 23 — 
   HELOC270,874 99.8 412 0.2 
   Consumer61,373 99.8 152 0.2 
      Total consumer loans8,411,593 99.7 25,088 0.3 
Total loans$20,159,710 99.4 %$128,628 0.6 %