v3.26.1
Allowance for Losses on Loans
 9 Months Ended
Jun. 30, 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 June 30, 2026Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers1
Ending Allowance
(In thousands)
Commercial loans
   Multi-family$25,923 $— $— $(277)$25,646 
   Commercial real estate41,503 (957)685 (459)40,772 
   Commercial & industrial68,662 (616)16 16,831 84,893 
   Construction16,712 — — 1,383 18,095 
   Land - acquisition & development7,692 — 6 762 8,460 
      Total commercial loans160,492 (1,573)707 18,240 177,866 
Consumer loans
   Single-family residential33,679 — 11 (4,186)29,504 
   Construction - custom302 — 2 (176)128 
   Land - consumer lot loans1,821 — — (114)1,707 
   HELOC2,850 — 1 (87)2,764 
   Consumer2,806 (857)90 823 2,862 
      Total consumer loans41,458 (857)104 (3,740)36,965 
Total ACL - loans$201,950 $(2,430)$811 $14,500 $214,831 
1Provision & transfer amounts within the table do not include the provision recapture on unfunded commitments of $3,500,000.

Three Months Ended June 30, 2025Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers1
Ending Allowance
(In thousands)
Commercial loans
   Multi-family$26,556 $(373)$— $623 $26,806 
   Commercial real estate38,469 (5,097)— 8,903 42,275 
   Commercial & industrial60,147 (112)201 (3,463)56,773 
   Construction19,406 — — (2,293)17,113 
   Land - acquisition & development6,703 — 6 (302)6,407 
      Total commercial loans151,281 (5,582)207 3,468 149,374 
Consumer loans
   Single-family residential40,963 — 105 (1,070)39,998 
   Construction - custom1,076 — 2 (332)746 
   Land - consumer lot loans2,415 — — (138)2,277 
   HELOC3,257 — 1 (136)3,122 
   Consumer3,717 (215)41 (292)3,251 
      Total consumer loans51,428 (215)149 (1,968)49,394 
Total ACL - Loans$202,709 $(5,797)$356 $1,500 $198,768 
1Provision & transfer amounts within the table do not include the provision on unfunded commitments of $500,000.
Nine Months Ended June 30, 2026Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers1
Ending Allowance
(In thousands)
Commercial loans
   Multi-family$25,953 $(81)$— $(226)$25,646 
   Commercial real estate41,988 (957)1,340 (1,599)40,772 
   Commercial & industrial59,163 (5,074)159 30,645 84,893 
   Construction18,136 — — (41)18,095 
   Land - acquisition & development6,894 — 122 1,444 8,460 
      Total commercial loans152,134 (6,112)1,621 30,223 177,866 
Consumer loans
   Single-family residential38,880 (82)23 (9,317)29,504 
   Construction - custom610 — 6 (488)128 
   Land - consumer lot loans2,105 — — (398)1,707 
   HELOC3,069 — 2 (307)2,764 
   Consumer2,922 (1,561)214 1,287 2,862 
      Total consumer loans47,586 (1,643)245 (9,223)36,965 
Total ACL - loans$199,720 $(7,755)$1,866 $21,000 $214,831 
 1Provision & transfer amounts within the table do not include provision recapture on unfunded commitments of $2,500,000.
Nine Months Ended June 30, 2025Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers1
Ending Allowance
(In thousands)
Commercial loans
   Multi-family$25,248 $(373)$— $1,931 $26,806 
   Commercial real estate39,210 (9,652)169 12,548 42,275 
   Commercial & industrial58,748 (705)243 (1,513)56,773 
   Construction22,267 — — (5,154)17,113 
   Land - acquisition & development7,900 — 25 (1,518)6,407 
      Total commercial loans153,373 (10,730)437 6,294 149,374 
Consumer loans
   Single-family residential40,523 (338)568 (755)39,998 
   Construction - custom1,427 — 2 (683)746 
   Land - consumer lot loans2,564 — 1 (288)2,277 
   HELOC3,049 — 2 71 3,122 
   Consumer2,817 (957)280 1,111 3,251 
      Total consumer loans50,380 (1,295)853 (544)49,394 
Total ACL - Loans$203,753 $(12,025)$1,290 $5,750 $198,768 
1Provision & transfer amounts within the table do not include the provision recapture on unfunded commitments of $1,000,000.
The Company recorded an $11,000,000 provision for credit losses for the three months ended June 30, 2026, compared with a $2,000,000 provision for the three months ended June 30, 2025. The provision in the three months ended June 30, 2026 was primarily the result of growth in the active loan portfolio, specifically C&I and Construction loans, in addition to concerns related to possible losses on adversely classified loans. The increase in the overall provision was offset by a decrease in the reserve for unfunded commitments. The Company recorded an $18,500,000 provision for credit losses for the nine months ended June 30, 2026 compared to $4,750,000 for the nine months ended June 30, 2025. The current fiscal year to date period also reflects growth in the active portfolio. Net charge-offs totaled $1,619,000 for the three months ended June 30, 2026,
compared to $5,441,000 of net charge-offs during the three months ended June 30, 2025. Net charge-offs totaled $5,889,000 for the nine months ended June 30, 2026, compared to $10,735,000 during the nine months ended June 30, 2025.

Non-performing assets were $135,748,000, or 0.5% of total assets, at June 30, 2026, compared to $143,022,000, or 0.5% of total assets, at September 30, 2025. Non-accrual loans were $127,569,000, or 0.6% of total loans at amortized cost, at June 30, 2026, compared to $128,628,000, or 0.6%, at September 30, 2025. Delinquencies, as a percent of total loans, were 0.8% at June 30, 2026, compared to 0.6% 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.
June 30, 2026Internally Assigned Grade
PassWatchSpecial MentionSubstandardDoubtfulTotal
(In thousands, except ratio data)
Loan type
Commercial loans
  Multi-family$4,208,611 $73,911 $205,789 $155,259 $2,332 $4,645,902 
  Commercial real estate3,409,300 74,766 25,724 116,253 — 3,626,043 
  Commercial & industrial2,713,652 77,533 94,991 162,037 52,979 3,101,192 
  Construction878,352 994 136,562 — — 1,015,908 
  Land - acquisition & development174,829 699 3,582 6,122 — 185,232 
    Total commercial loans11,384,744 227,903 466,648 439,671 55,311 12,574,277 
Consumer loans
  Single-family residential7,245,719 — — 22,444 — 7,268,163 
  Construction - custom15,525 — — 892 — 16,417 
  Land - consumer lot loans71,743 — — 239 — 71,982 
  HELOC246,956 — — 628 — 247,584 
  Consumer54,022 — — 262 — 54,284 
    Total consumer loans7,633,965 — — 24,465 — 7,658,430 
Total$19,018,709 $227,903 $466,648 $464,136 $55,311 $20,232,707 
Total grade as a % of total loans at amortized cost94.0 %1.1 %2.3 %2.3 %0.3 %
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 loans at amortized cost95.7 %1.2 %3.1 %— %— %

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

June 30, 2026Performing LoansNon-Performing Loans
Amount% of Total
Loans		Amount% of Total
Loans
(In thousands, except ratio data)
Commercial loans
   Multi-family$4,611,653 99.3 %$34,249 0.7 %
   Commercial real estate3,622,929 99.9 3,114 0.1 
   Commercial & industrial3,035,451 97.9 65,741 2.1 
   Construction1,015,908 100.0 — 0.0 
   Land - acquisition & development185,232 100.0 — — 
      Total commercial loans12,471,173 99.2 103,104 0.8 
Consumer loans
   Single-family residential7,245,718 99.7 22,445 0.3 
   Construction - custom15,525 94.6 892 5.4 
   Land - consumer lot loans71,743 99.7 239 0.3 
   HELOC246,957 99.7 627 0.3 
   Consumer54,022 99.5 262 0.5 
      Total consumer loans7,633,965 99.7 24,465 0.3 
Total loans$20,105,138 99.4 %$127,569 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 %