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Loans Receivable and Allowance for Loan Losses (Tables)

12 Months Ended

Sep. 30, 2021

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Schedule of Loans Receivable and Loans Held for Sale

Loans receivable by portfolio segment consisted of the following at September 30, 2021 and 2020 (dollars in thousands):


	2021		2020
Mortgage loans:
One- to four-family	$	119,935	$	118,580
Multi-family	87,563		85,053
Commercial	470,650		453,574
Construction – custom and owner/builder	109,152		129,572
Construction – speculative one- to four-family	17,813		14,592
Construction – commercial	43,365		33,144
Construction – multi-family	52,071		34,476
Construction – land development	10,804		7,712
Land	19,936		25,571
Total mortgage loans	931,289		902,274
Consumer loans:
Home equity and second mortgage	32,988		32,077
Other	2,512		3,572
Total consumer loans	35,500		35,649

Commercial loans:
Commercial business	74,579		69,540
SBA Paycheck Protection Program ("PPP")	40,922		126,820
Total commercial business and SBA PPP loans	115,501		196,360
Total loans receivable	1,082,290		1,134,283
Less:
Undisbursed portion of construction loans in process	95,224		100,558
Deferred loan origination fees, net	5,143		6,436
Allowance for loan losses	13,469		13,414
	113,836		120,408
Loans receivable, net	$	968,454	$	1,013,875

Schedule of Activity in Related Party Loans

Activity in related party loans during the years ended September 30, 2021, 2020 and 2019 was as follows (dollars in thousands):


	2021		2020		2019
Balance, beginning of year	$	248	$	94	$	119
New loans or borrowings	316		178		1
Repayments and reclassifications	(98)		(24)		(26)
Balance, end of year	$	466	$	248	$	94

Schedule of Allowance for Loan Losses

The following table sets forth information for the year ended September 30, 2021 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):


	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,163	$	(9)	$	—	$	—	$	1,154
Multi-family	718		47		—		—		765
Commercial	7,144		(331)		—		—		6,813
Construction – custom and owner/builder	832		(188)		—		—		644
Construction – speculative one- to four-family	158		30		—		—		188
Construction – commercial	420		364		—		—		784
Construction – multi-family	238		198		—		—		436
Construction – land development	133		(9)		—		—		124
Land	572		(147)		—		45		470
Consumer loans:
Home equity and second mortgage	593		(65)		—		—		528
Other	71		(24)		(1)		4		50
Commercial business loans	1,372		134		(2)		9		1,513
Total	$	13,414	$	—	$	(3)	$	58	$	13,469

The following table sets forth information for the year ended September 30, 2020 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):


	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,167	$	(6)	$	—	$	2	$	1,163
Multi-family	481		237		—		—		718
Commercial	4,154		2,984		—		6		7,144
Construction – custom and owner/builder	755		72		—		5		832
Construction – speculative one- to four-family	212		(54)		—		—		158
Construction – commercial	338		82		—		—		420
Construction – multi-family	375		(137)		—		—		238
Construction – land development	67		66		—		—		133
Land	697		(145)		—		20		572
Consumer loans:
Home equity and second mortgage	623		(45)		—		15		593
Other	99		(19)		(12)		3		71
Commercial business loans	722		665		(15)		—		1,372
Total	$	9,690	$	3,700	$	(27)	$	51	$	13,414

The following table sets forth information for the year ended September 30, 2019 regarding activity in the allowance for loan losses by portfolio segment (dollars in thousands):


	Beginning Allowance		Provision for (Recapture of) Loan Losses		Charge- offs		Recoveries		Ending Allowance
Mortgage loans:
One- to four-family	$	1,086	$	(23)	$	—	$	104	$	1,167
Multi-family	433		48		—		—		481
Commercial	4,248		(260)		—		166		4,154
Construction – custom and owner/builder	671		82		—		2		755
Construction – speculative one- to four-family	178		34		—		—		212
Construction – commercial	563		(225)		—		—		338
Construction – multi-family	135		240		—		—		375
Construction – land development	49		18		—		—		67
Land	844		(116)		(49)		18		697
Consumer loans:
Home equity and second mortgage	649		(21)		(5)		—		623
Other	117		(19)		(5)		6		99
Commercial business loans	557		242		(102)		25		722
Total	$	9,530	$	—	$	(161)	$	321	$	9,690

Schedule of Loans Evaluated Individually for Impairment and Collectively Evaluated for Impairment in the Allowance for Loan Losses

The following table presents information on loans evaluated individually and collectively for impairment in the allowance for loan losses by portfolio segment at September 30, 2021 (dollars in thousands):


	Allowance for Loan Losses						Recorded Investment in Loans
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Mortgage loans:
One- to four-family	$	—	$	1,154	$	1,154	$	407	$	119,528	$	119,935
Multi-family	—		765		765		—		87,563		87,563
Commercial	—		6,813		6,813		3,143		467,507		470,650
Construction – custom and owner/ builder	—		644		644		—		61,003		61,003
Construction – speculative one- to four-family	—		188		188		—		9,657		9,657
Construction – commercial	—		784		784		—		38,931		38,931
Construction – multi-family	—		436		436		—		22,888		22,888
Construction – land development	—		124		124		—		5,502		5,502
Land	76		394		470		683		19,253		19,936
Consumer loans:
Home equity and second mortgage	—		528		528		516		32,472		32,988
Other	—		50		50		17		2,495		2,512
Commercial business loans	171		1,342		1,513		458		74,121		74,579
SBA PPP loans	—		—		—		—		40,922		40,922
Total	$	247	$	13,222	$	13,469	$	5,224	$	981,842	$	987,066


	Allowance for Loan Losses						Recorded Investment in Loans
	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Mortgage loans:
One- to four-family	$	3	$	1,160	$	1,163	$	1,143	$	117,437	$	118,580
Multi-family	—		718		718		—		85,053		85,053
Commercial	—		7,144		7,144		3,242		450,332		453,574
Construction – custom and owner/ builder	—		832		832		—		75,332		75,332
Construction – speculative one- to four-family	—		158		158		—		7,108		7,108
Construction – commercial	—		420		420		—		20,927		20,927
Construction – multi-family	—		238		238		—		10,832		10,832
Construction – land development	—		133		133		—		4,739		4,739
Land	—		572		572		394		25,177		25,571
Consumer loans:
Home equity and second mortgage	—		593		593		555		31,522		32,077
Other	—		71		71		9		3,563		3,572
Commercial business loans	38		1,334		1,372		430		69,110		69,540
SBA PPP loans	—		—		—		—		126,820		126,820
Total	$	41	$	13,373	$	13,414	$	5,773	$	1,027,952	$	1,033,725

Past Due Status of Loans Receivable

The following table presents an analysis of loans by aging category and portfolio segment at September 30, 2021 (dollars in thousands):


	30-59 Days Past Due		60-89 Days Past Due		Non- Accrual(1)		Past Due 90 Days or More and Still Accruing		Total Past Due		Current		Total Loans
Mortgage loans:
One- to four-family	$	—	$	180	$	407	$	—	$	587	$	119,348	$	119,935
Multi-family	—		—		—		—		—		87,563		87,563
Commercial	—		—		773		—		773		469,877		470,650
Construction – custom and owner/ builder	—		—		—		—		—		61,003		61,003
Construction – speculative one- to four-family	—		—		—		—		—		9,657		9,657
Construction – commercial	—		—		—		—		—		38,931		38,931
Construction – multi-family	—		—		—		—		—		22,888		22,888
Construction – land development	—		—		—		—		—		5,502		5,502
Land	—		—		683		—		683		19,253		19,936
Consumer loans:
Home equity and second mortgage	—		—		516		—		516		32,472		32,988
Other	—		—		17		—		17		2,495		2,512
Commercial business loans	5		—		458		—		463		74,116		74,579
SBA PPP loans	—		—		—		—		—		40,922		40,922
Total	$	5	$	180	$	2,854	$	—	$	3,039	$	984,027	$	987,066

__________________

(1)Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual.

The following table presents an analysis of loans by aging category and portfolio segment at September 30, 2020 (dollars in thousands):


	30-59 Days Past Due		60-89 Days Past Due		Non- Accrual(1)		Past Due 90 Days or More and Still Accruing		Total Past Due		Current		Total Loans
Mortgage loans:
One- to four-family	$	—	$	68	$	659	$	—	$	727	$	117,853	$	118,580
Multi-family	—		—		—		—		—		85,053		85,053
Commercial	—		519		858		—		1,377		452,197		453,574
Construction – custom and owner/ builder	—		—		—		—		—		75,332		75,332
Construction – speculative one- to four-family	—		—		—		—		—		7,108		7,108
Construction – commercial	—		—		—		—		—		20,927		20,927
Construction – multi-family	—		—		—		—		—		10,832		10,832
Construction – land development	—		38		—		—		38		4,701		4,739
Land	—		144		394		—		538		25,033		25,571
Consumer loans:
Home equity and second mortgage	—		22		555		—		577		31,500		32,077
Other	3		—		9		—		12		3,560		3,572
Commercial business loans	49		—		430		—		479		69,061		69,540
SBA PPP loans	—		—		—		—		—		126,820		126,820
Total	$	52	$	791	$	2,905	$	—	$	3,748	$	1,029,977	$	1,033,725

___________________

(1)Includes non-accrual loans past due 90 days or more and other loans classified as non-accrual.

Financing Receivable Credit Quality Indicators

The following table presents an analysis of loans by credit quality indicator and portfolio segment at September 30, 2021 (dollars in thousands):


	Loan Grades
	Pass		Watch		Special Mention		Substandard		Total
Mortgage loans:
One- to four-family	$	118,857	$	129	$	537	$	412	$	119,935
Multi-family	87,563		—		—		—		87,563
Commercial	456,188		10,285		2,921		1,256		470,650
Construction – custom and owner / builder	59,699		1,304		—		—		61,003
Construction – speculative one- to four-family	9,657		—		—		—		9,657
Construction – commercial	37,414		—		1,517		—		38,931
Construction – multi-family	22,888		—		—		—		22,888
Construction – land development	5,467		—		—		35		5,502
Land	18,648		558		—		730		19,936
Consumer loans:
Home equity and second mortgage	32,190		145		—		653		32,988
Other	2,465		30		—		17		2,512
Commercial business loans	73,992		49		37		501		74,579
SBA PPP loans	40,922		—		—		—		40,922
Total	$	965,950	$	12,500	$	5,012	$	3,604	$	987,066

The following table presents an analysis of loans by credit quality indicator and portfolio segment at September 30, 2020 (dollars in thousands):


	Loan Grades
	Pass		Watch		Special Mention		Substandard		Total
Mortgage loans:
One- to four-family	$	115,992	$	1,369	$	551	$	668	$	118,580
Multi-family	85,053		—		—		—		85,053
Commercial	441,037		7,712		3,447		1,378		453,574
Construction – custom and owner / builder	74,529		803		—		—		75,332
Construction – speculative one- to four-family	7,108		—		—		—		7,108
Construction – commercial	19,525		—		1,402		—		20,927
Construction – multi-family	10,832		—		—		—		10,832
Construction – land development	4,701		—		—		38		4,739
Land	23,290		1,518		370		393		25,571
Consumer loans:
Home equity and second mortgage	31,344		53		—		680		32,077
Other	3,531		32		—		9		3,572
Commercial business loans	68,904		59		94		483		69,540
SBA PPP loans	126,820		—		—		—		126,820
Total	$	1,012,666	$	11,546	$	5,864	$	3,649	$	1,033,725

Impaired Financing Receivables

The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2021 (dollars in thousands):


	September 30, 2021						For the Year Ended September 30, 2021
	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Income Recognized
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	407	$	450	$	—	$	655	$	58	$	52

Commercial	3,143		3,143		—		3,039		159		127




Land	321		321		—		292		2		2
Consumer loans:
Home equity and second mortgage	516		516		—		552		1		1
Other	17		17		—		12		—		—
Commercial business loans	164		168		—		200		—		—
Subtotal	4,568		4,615		—		4,750		220		182
With an allowance recorded:
Mortgage loans:
One- to four-family	—		—		—		97		—		—






Land	362		362		76		72		—		—



Commercial business loans	294		294		171		285		—		—
Subtotal	656		656		247		454		—		—
Total:
Mortgage loans:
One- to four-family	407		450		—		752		58		52

Commercial	3,143		3,143		—		3,039		159		127




Land	683		683		76		364		2		2
Consumer loans:
Home equity and second mortgage	516		516		—		552		1		1
Other	17		17		—		12		—		—
Commercial business loans	458		462		171		485		—		—
Total	$	5,224	$	5,271	$	247	$	5,204	$	220	$	182

The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2020 (dollars in thousands):


	September 30, 2020						For the Year Ended September 30, 2020
	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Income Recognized
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	659	$	703	$	—	$	1,127	$	44	$	34

Commercial	3,242		3,242		—		3,236		133		107




Land	394		438		—		125		—		—
Consumer loans:
Home equity and second mortgage	555		555		—		581		—		—
Other	9		9		—		6		—		—
Commercial business loans	182		182		—		176		—		—
Subtotal	5,041		5,129		—		5,251		177		141
With an allowance recorded:
Mortgage loans:
One- to four-family	484		484		3		194		16		8






Land	—		—		—		110		—		—
Consumer loans:

Other	—		—		—		7		—		—
Commercial business loans	248		248		38		370		—		—
Subtotal	732		732		41		681		16		8
Total:
Mortgage loans:
One- to four-family	1,143		1,187		3		1,321		60		42

Commercial	3,242		3,242		—		3,236		133		107




Land	394		438		—		235		—		—
Consumer loans:
Home equity and second mortgage	555		555		—		581		—		—
Other	9		9		—		13		—		—
Commercial business loans	430		430		38		546		—		—
Total	$	5,773	$	5,861	$	41	$	5,932	$	193	$	149

The following table is a summary of information related to impaired loans by portfolio segment as of and for the year ended September 30, 2019 (dollars in thousands):


	September 30, 2019						For the Year Ended September 30, 2019
	Recorded Investment		Unpaid Principal Balance (Loan Balance Plus Charge Off)		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash Basis Interest Income Recognized
With no related allowance recorded:
Mortgage loans:
One- to four-family	$	1,192	$	1,236	$	—	$	1,110	$	71	$	62

Commercial	3,190		3,190		—		2,920		227		192





Land	63		126		—		100		3		3
Consumer loans:
Home equity and second mortgage	603		603		—		459		—		—

Commercial business loans	189		291		—		142		30		30
Subtotal	5,237		5,446		—		4,731		331		287
With an allowance recorded:
Mortgage loans:







Land	141		141		27		246		—		—
Consumer loans:

Other	23		23		17		10		—		—
Commercial business loans	536		536		128		350		30		30
Subtotal	700		700		172		606		30		30
Total:
Mortgage loans:
One- to four-family	1,192		1,236		—		1,110		71		62

Commercial	3,190		3,190		—		2,920		227		192





Land	204		267		27		346		3		3
Consumer loans:
Home equity and second mortgage	603		603		—		459		—		—
Other	23		23		17		10		—		—
Commercial business loans	725		827		128		492		60		60
Total	$	5,937	$	6,146	$	172	$	5,337	$	361	$	317

Schedule Of COVID Loan Modifications

The following table details the COVID-19 loan modifications on deferral status as of September 30, 2021 (dollars in thousands):


COVID-19 Loan Modifications
Mortgage loans	Number	Balance		Percent
One- to four-family	1	$	323	100.0	%












Total COVID-19 modifications	1	$	323	100.0	%

The following table details the COVID-19 loan modifications on deferral status as of September 30, 2020 (dollars in thousands):


COVID-19 Loan Modifications
Mortgage loans	Number	Balance		Percent
One- to four-family	1	$	467	8.0	%

Commercial	2	3,951		67.2
Construction	1	1,402		23.9

Total mortgage loans	4	5,820		99.1

Consumer loans
Home equity and second mortgage	1	50		0.9

Total consumer loans	1	50		0.9


Total COVID-19 Modifications	5	$	5,870	100.0	%

Schedule of Troubled Debt Restructuring Loans by Interest Accrual Status

The following tables set forth information with respect to the Company’s TDRs by interest accrual status as of September 30, 2021 and 2020 (dollars in thousands):


	2021
	Accruing		Non-Accrual		Total
Mortgage loans:


Commercial	$	2,371	$	—	$	2,371
Land	—		119		119
Consumer loans:
Home equity and second mortgage	—		63		63

Total	$	2,371	$	182	$	2,553


	2020
	Accruing		Non-Accrual		Total
Mortgage loans:
One- to four-family	$	483	$	—	$	483

Commercial	2,385		—		2,385


Land	—		130		130
Consumer loans:
Home equity and second mortgage	—		73		73

Total	$	2,868	$	203	$	3,071

Troubled Debt Restructurings on Financing Receivables

The following table sets forth information with respect to the Company's TDRs, by portfolio segment, added during the year ended September 30, 2019:


2019	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		End of Period Balance
Home equity and second mortgage loans (1)	1	$	85	$	85	$	82

Total	1	$	85	$	85	$	82