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Allowance for Losses on Loans
 6 Months Ended
Mar. 31, 2023
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, 2023Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers (1)
Ending Allowance
 (In thousands)
Commercial loans
   Multi-family$12,324 $— $— $714 $13,038 
   Commercial real estate27,380 — 1 422 27,803 
   Commercial & industrial63,873 (6,054)42 5,440 63,301 
   Construction26,133 — — (106)26,027 
   Land - acquisition & development8,572 — 14 (1,090)7,496 
      Total commercial loans138,282 (6,054)57 5,380 137,665 
Consumer loans
   Single-family residential25,475 (34)104 1,371 26,916 
   Construction - custom3,500 — — (44)3,456 
   Land - consumer lot loans4,142 — 5 (202)3,945 
   HELOC2,588 — — 74 2,662 
   Consumer2,810 (38)83 (79)2,776 
      Total consumer loans38,515 (72)192 1,120 39,755 
Total loans$176,797 $(6,126)$249 $6,500 $177,420 
(1) Provision & transfer amounts within the table do not include the recapture of provision for unfunded commitments of $3.0 million. The total provision recognized for the three months ended March 31, 2023 was $3.5 million.
Three Months Ended March 31, 2022Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers (1)
Ending Allowance
 (In thousands)
Commercial loans
   Multi-family$15,993 $— $— $(1,530)$14,463 
   Commercial real estate25,722 — 753 (1,793)24,682 
   Commercial & industrial47,231 (873)2 7,543 53,903 
   Construction24,766 — 179 (2,238)22,707 
   Land - acquisition & development14,125 — 20 (460)13,685 
      Total commercial loans127,837 (873)954 1,522 129,440 
Consumer loans
   Single-family residential30,106 — 147 (1,261)28,992 
   Construction - custom3,719 — — (590)3,129 
   Land - consumer lot loans4,984 — 40 81 5,105 
   HELOC2,365 — 100 10 2,475 
   Consumer2,400 (39)144 (262)2,243 
      Total consumer loans43,574 (39)431 (2,022)41,944 
Total loans$171,411 $(912)$1,385 $(500)$171,384 
(1) Provision & transfer amounts within the table do not include the provision for unfunded commitments. There was no such provision in the above quarter. The total provision recapture recognized for the three months ended March 31, 2022 was $0.5 million
Six Months Ended March 31, 2023Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers (1)
Ending Allowance
 (In thousands)
Commercial loans
   Multi-family$12,013 $— $— $1,025 $13,038 
   Commercial real estate25,814 — 5 1,984 27,803 
   Commercial & industrial57,210 (6,136)74 12,153 63,301 
   Construction26,161 — — (134)26,027 
   Land - acquisition & development12,278 — 30 (4,812)7,496 
      Total commercial loans133,476 (6,136)109 10,216 137,665 
Consumer loans
   Single-family residential25,518 (34)534 898 26,916 
   Construction - custom3,410 — — 46 3,456 
   Land - consumer lot loans5,047 — 5 (1,107)3,945 
   HELOC2,482 — 1 179 2,662 
   Consumer2,875 (184)317 (232)2,776 
      Total consumer loans39,332 (218)857 (216)39,755 
Total loans$172,808 $(6,354)$966 $10,000 $177,420 
(1) Provision & transfer amounts within the table do not include the recapture of provision for unfunded commitments of $4.0 million. The total provision for the six months ended March 31, 2023 was $6.0 million.
Six Months Ended March 31, 2022Beginning AllowanceCharge-offsRecoveries
Provision &
Transfers (1)
Ending Allowance
 (In thousands)
Commercial loans
   Multi-family$16,949 $— $— $(2,486)$14,463 
   Commercial real estate23,437 (529)797 977 24,682 
   Commercial & industrial45,957 (916)64 8,798 53,903 
   Construction25,585 — 2,179 (5,057)22,707 
   Land - acquisition & development13,447 (2)40 200 13,685 
      Total commercial loans125,375 (1,447)3,080 2,432 129,440 
Consumer loans
   Single-family residential30,978 — 552 (2,538)28,992 
   Construction - custom4,907 — — (1,778)3,129 
   Land - consumer lot loans4,939 (27)45 148 5,105 
   HELOC2,390 — 101 (16)2,475 
   Consumer2,711 (115)395 (748)2,243 
      Total consumer loans45,925 (142)1,093 (4,932)41,944 
Total loans$171,300 $(1,589)$4,173 $(2,500)$171,384 
(1) Provision & transfer amounts within the table do not include the provision for unfunded commitments of $2.5 million. As such there was no provision recognized for the six months ended March 31, 2022.

The Company recorded a $3,500,000 provision for credit losses for the three months ended March 31, 2023, compared to a $500,000 release of allowance for credit losses for the three months ended March 31, 2022. The provision in the three months ended March 31, 2023 was primarily due to growth in net loans receivable combined with the changing economic outlook amid concerns around a looming recession and recent macro-economic events. The release for the three months ended March 31, 2022 was primarily due to improvements in the credit quality of certain loan portfolios related to strong real estate markets and collateral conditions, mostly offset by growth in loans receivable. The Company recorded a $6,000,000 provision for credit losses for the six months ended March 31, 2023, compared with no provision for credit losses for the six months ended March 31, 2022. Charge-offs, net of recoveries, totaled $5,877,000 for the three months ended March 31, 2023, compared to net recoveries of $473,000 during the three months ended March 31, 2022. Charge-offs, net of recoveries, totaled $5,388,000 for the six months ended March 31, 2023, compared to net recoveries of $2,584,000 during the six months ended March 31, 2022. No allowance was recorded as of March 31, 2023 or as of September 30, 2022 for the $2,781,000 and $10,141,399 of PPP loans in the portfolio on each date, respectively, which are included in the commercial & industrial loan category, due to the government guarantee.

Non-performing assets were $46,785,000, or 0.21% of total assets, at March 31, 2023, compared to $44,554,000, or 0.21% of total assets, at September 30, 2022. Non-accrual loans were $34,606,000 at March 31, 2023, compared to $34,534,000 at September 30, 2022. Delinquencies, as a percent of total loans, were 0.16% at March 31, 2023, compared to 0.17% at September 30, 2022.

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, 2023Internally Assigned Grade
 PassSpecial mentionSubstandardDoubtfulLossTotal
 (In thousands, except ratio data)
Loan type
Commercial loans
  Multi-family$2,745,834 $94,503 $19,657 $— $— $2,859,994 
  Commercial real estate3,169,372 500 88,432 — — 3,258,304 
  Commercial & industrial2,415,335 1,558 161,366 6,937 — 2,585,196 
  Construction1,576,999 31,514 — — — 1,608,513 
  Land - acquisition & development166,811 269 — — — 167,080 
    Total commercial loans10,074,351 128,344 269,455 6,937 — 10,479,087 
Consumer loans
  Single-family residential6,114,358 — 19,663 — — 6,134,021 
  Construction - custom403,783 — — — — 403,783 
  Land - consumer lot loans140,134 — 6 — — 140,140 
  HELOC221,031 — 128 — — 221,159 
  Consumer71,124 — 12 — — 71,136 
    Total consumer loans6,950,430 — 19,809 — — 6,970,239 
Total$17,024,781 $128,344 $289,264 $6,937 $— $17,449,326 
Total grade as a % of total loans97.57 %0.74 %1.66 %0.04 %— %
September 30, 2022Internally Assigned Grade
 PassSpecial mentionSubstandardDoubtfulLossTotal
 (In thousands, except ratio data)
Loan type
Commercial loans
  Multi-family$2,612,669 $— $13,810 $— $— $2,626,479 
  Commercial real estate3,054,241 1,594 55,277 — — 3,111,112 
  Commercial & industrial2,196,767 31,656 114,980 — — 2,343,403 
  Construction1,421,634 — 2,257 — — 1,423,891 
  Land - acquisition & development223,616 — — — — 223,616 
    Total commercial loans9,508,927 33,250 186,324 — — 9,728,501 
Consumer loans
  Single-family residential5,706,199 — 20,780 — — 5,726,979 
  Construction - custom396,908 — 435 — — 397,343 
  Land - consumer lot loans151,723 — 222 — — 151,945 
  HELOC205,800 — 233 — — 206,033 
  Consumer75,570 — 1 — — 75,571 
    Total consumer loans6,536,200 — 21,671 — — 6,557,871 
Total loans$16,045,127 $33,250 $207,995 $— $— $16,286,372 
Total grade as a % of total loans98.52 %0.20 %1.28 %— %— %
The following tables provide information on amortized cost of loans receivable based on borrower payment activity.

March 31, 2023Performing LoansNon-Performing Loans
 Amount% of Total
Loans		Amount% of Total
Loans
 (In thousands, except ratio data)
Commercial loans
   Multi-family$2,854,150 99.8 %$5,844 0.2 %
   Commercial real estate3,253,785 99.9 4,519 0.1 
   Commercial & industrial2,577,515 99.7 7,681 0.3 
   Construction1,608,513 100.0 — 0.0 
   Land - acquisition & development167,080 100.0 — — 
      Total commercial loans10,461,043 99.8 18,044 0.2 
Consumer loans
   Single-family residential6,117,625 99.7 16,396 0.3 
   Construction - custom403,783 100.0 — — 
   Land - consumer lot loans140,134 100.0 6 0.0 
   HELOC221,031 99.9 128 0.1 
   Consumer71,104 100.0 32 0.0 
      Total consumer loans6,953,677 99.8 16,562 0.2 
Total loans$17,414,720 99.8 %$34,606 0.2 %
September 30, 2022Performing LoansNon-Performing Loans
 Amount% of Total
Loans		Amount% of Total
Loans
 (In thousands, except ratio data)
Commercial loans
   Multi-family$2,620,567 99.8 %$5,912 0.2 %
   Commercial real estate3,106,421 99.8 4,691 0.2 
   Commercial & industrial2,337,710 99.8 5,693 0.2 
   Construction1,423,891 100.0 — — 
   Land - acquisition & development223,616 100.0 — — 
      Total commercial loans9,712,205 99.9 16,296 0.1 
Consumer loans
   Single-family residential5,709,529 99.7 17,450 0.3 
   Construction - custom396,908 99.9 435 0.1 
   Land - consumer lot loans151,861 99.9 84 0.1 
   HELOC205,800 99.9 233 0.1 
   Consumer75,535 100.0 36 0.0 
      Total consumer loans6,539,633 99.7 18,238 0.4 
Total loans$16,251,838 99.8 %$34,534 0.2 %