Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 07, 2021 | Mar. 31, 2021 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2021 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Registrant Name | FIRST SAVINGS FINANCIAL GROUP, INC. | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity File Number | 1-34155 | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 37-1567871 | ||
Entity Address, Address Line One | 702 North Shore Drive, Suite 300, | ||
Entity Address, City or Town | Jeffersonville | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 47130 | ||
City Area Code | 812 | ||
Local Phone Number | 283-0724 | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | FSFG | ||
Entity Voluntary Filers | No | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 127.9 | ||
Entity Common Stock, Shares Outstanding | 7,169,826 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001435508 | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
ASSETS | ||
Cash and due from banks | $ 14,191,000 | $ 12,807,000 |
Interest-bearing deposits with banks | 19,237,000 | 20,919,000 |
Total cash and cash equivalents | 33,428,000 | 33,726,000 |
Interest-bearing time deposits | 2,222,000 | 2,964,000 |
Securities available for sale, at fair value | 206,681,000 | 201,965,000 |
Securities held to maturity | 1,837,000 | 2,102,000 |
Loans held for sale, residential mortgage ($167,813 at fair value at September 30, 2021 and $208,493 at fair value at September 30, 2020) | 167,813,000 | 263,406,000 |
Loans held for sale, single tenant net lease | 23,020,000 | |
Loans held for sale, Small Business Administration | 24,107,000 | 22,119,000 |
Loans, net of allowance for loan losses of $14,301 at September 30, 2021 and $17,026 at September 30, 2020 | 1,075,936,000 | 1,090,063,000 |
Federal Reserve Bank and Federal Home Loan Bank stock, at cost | 19,258,000 | 17,293,000 |
Premises and equipment | 27,669,000 | 24,412,000 |
Other real estate owned, held for sale | 1,728,000 | 1,728,000 |
Accrued interest receivable: | ||
Loans | 4,398,000 | 4,585,000 |
Securities | 1,845,000 | 1,877,000 |
Cash surrender value of life insurance | 44,152,000 | 31,758,000 |
Goodwill | 9,848,000 | 9,848,000 |
Core deposit intangibles | 988,000 | 1,202,000 |
Residential mortgage loan servicing rights, at fair value | 49,579,000 | 21,703,000 |
SBA loan servicing rights | 4,447,000 | 3,748,000 |
Other assets | 21,550,000 | 30,126,000 |
Total Assets | 1,720,506,000 | 1,764,625,000 |
Deposits: | ||
Noninterest-bearing | 291,039,000 | 242,673,000 |
Interest-bearing | 936,541,000 | 805,403,000 |
Total deposits | 1,227,580,000 | 1,048,076,000 |
Federal Home Loan Bank borrowings | 250,000,000 | 310,858,000 |
Federal Reserve PPPLF borrowings | 0 | 174,834,000 |
Other borrowings | 19,865,000 | 19,797,000 |
Accrued interest payable | 258,000 | 683,000 |
Advance payments by borrowers for taxes and insurance | 1,188,000 | 2,615,000 |
Accrued expenses and other liabilities | 41,238,000 | 50,197,000 |
Total Liabilities | 1,540,129,000 | 1,607,060,000 |
EQUITY | ||
Preferred stock of $.01 par value per share; authorized 1,000,000 shares; none issued | ||
Common stock of $.01 par value per share; authorized 20,000,000 shares; issued 7,708,566 shares (7,703,526 at September 30, 2020); outstanding 7,125,888 shares (7,125,972 shares at September 30, 2020) | 78,000 | 26,000 |
Additional paid-in capital | 25,721,000 | 27,480,000 |
Retained earnings - substantially restricted | 150,185,000 | 123,158,000 |
Accumulated other comprehensive income | 8,900,000 | 11,209,000 |
Unearned stock compensation | (138,000) | (348,000) |
Less treasury stock, at cost - 582,678 shares (577,554 shares at September 30, 2020) | (4,369,000) | (4,253,000) |
Total First Savings Financial Group, Inc. Stockholders' Equity | 180,377,000 | 157,272,000 |
Noncontrolling interests in subsidiary | 293,000 | |
Total Equity | 180,377,000 | 157,565,000 |
Total Liabilities and Equity | $ 1,720,506,000 | $ 1,764,625,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares |
CONSOLIDATED BALANCE SHEETS | ||
Loans Held-for-sale, Fair Value Disclosure | $ | $ 167,813 | $ 208,493 |
Loans, net of allowance for loan losses | $ | $ 14,301 | $ 17,026 |
Preferred stock, par value | $ / shares | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 |
Common stock, Authorized | 20,000,000 | 20,000,000 |
Common stock, issued | 7,708,566 | 7,703,526 |
Common Stock, Outstanding | 7,125,888 | 7,125,972 |
Treasury stock, shares | 582,678 | 577,554 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
INTEREST INCOME | |||
Loans, including fees | $ 58,114 | $ 50,167 | $ 42,697 |
Securities: | |||
Taxable | 1,771 | 2,075 | 2,769 |
Tax-exempt | 4,719 | 4,423 | 4,030 |
Dividend income | 582 | 617 | 643 |
Interest-bearing deposits with banks | 73 | 417 | 856 |
Total interest income | 65,259 | 57,699 | 50,995 |
INTEREST EXPENSE | |||
Deposits | 3,195 | 5,659 | 6,944 |
Federal funds purchased and repurchase agreements | 0 | 3 | 1 |
Federal Home Loan Bank borrowings | 3,199 | 3,345 | 3 |
Federal Reserve PPPLF borrowings | 400 | 220 | 2,681 |
Other borrowings | 1,293 | 1,311 | 1,277 |
Total interest expense | 8,087 | 10,538 | 10,906 |
Net interest income | 57,172 | 47,161 | 40,089 |
Provision (credit) for loan losses | (1,767) | 7,962 | 1,463 |
Net interest income after provision (credit) for loan losses | 58,939 | 39,199 | 38,626 |
NONINTEREST INCOME | |||
Service charges on deposit accounts | 1,468 | 1,581 | 1,957 |
ATM and interchange fees | 2,399 | 2,116 | 1,949 |
Net gain (loss) on sales of available for sale securities and time deposits | 0 | 7 | (74) |
Net unrealized gain (loss) on equity securities | 46 | (19) | 5 |
Net gain on sales of loans, Small Business Administration | 8,740 | 5,673 | 4,569 |
Mortgage banking income | 104,504 | 120,733 | 33,044 |
Increase in cash surrender value of life insurance | 785 | 732 | 580 |
Gain on life insurance | 140 | 0 | 0 |
Commission income | 589 | 288 | 324 |
Real estate lease income | 592 | 589 | 594 |
Net gain (loss) on premises and equipment | 78 | (8) | (83) |
Income from on tax credit investment | 32 | 426 | 210 |
Other income | 1,063 | 1,233 | 779 |
Total noninterest income | 120,436 | 133,351 | 43,854 |
NONINTEREST EXPENSE | |||
Compensation and benefits | 102,951 | 92,904 | 42,899 |
Occupancy and equipment | 9,906 | 8,958 | 6,094 |
Data processing | 2,546 | 2,153 | 1,823 |
Advertising | 6,574 | 7,346 | 2,752 |
Professional fees | 5,583 | 3,606 | 2,342 |
FDIC insurance premiums | 446 | 405 | 312 |
Net gain on other real estate owned | (64) | (1) | (57) |
Other operating expenses | 11,467 | 10,437 | 6,225 |
Total noninterest expense | 139,409 | 125,808 | 62,390 |
Income before income taxes | 39,966 | 46,742 | 20,090 |
Income tax expense | 9,997 | 12,661 | 3,095 |
Net Income | 29,969 | 34,081 | 16,995 |
Less: net income attributable to noncontrolling interests | 402 | 727 | 818 |
Net Income Attributable to First Savings Financial Group, Inc. | $ 29,567 | $ 33,354 | $ 16,177 |
Net income per share: | |||
Basic | $ 4.16 | $ 4.72 | $ 2.33 |
Diluted | $ 4.12 | $ 4.68 | $ 2.27 |
Weighted average shares outstanding: | |||
Basic | 7,107,786 | 7,070,040 | 6,947,091 |
Diluted | 7,173,733 | 7,127,862 | 7,116,252 |
Dividends per share | $ 0.36 | $ 0.22 | $ 0.21 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) | Sep. 15, 2021 |
CONSOLIDATED STATEMENTS OF INCOME | |
Stock split ratio | 0.33 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net Income | $ 29,969 | $ 34,081 | $ 16,995 |
Unrealized gains (losses) on securities available for sale: | |||
Unrealized holding gains (losses) arising during the period | (2,923) | 4,886 | 8,783 |
Income tax (expense) benefit | 614 | (968) | (1,912) |
Net of tax amount | (2,309) | 3,918 | 6,871 |
Less: reclassification adjustment for realized (gains) losses included in net income | 0 | (7) | 55 |
Income tax expense (benefit) | 0 | 2 | (12) |
Net of tax amount | 0 | (5) | 43 |
Other Comprehensive Income (Loss) | (2,309) | 3,913 | 6,914 |
Comprehensive Income | 27,660 | 37,994 | 23,909 |
Less: comprehensive income attributable to noncontrolling interests | 402 | 727 | 818 |
Comprehensive Income Attributable to First Savings Financial Group, Inc. | $ 27,258 | $ 37,267 | $ 23,091 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common StockCumulative Effect Period Of Adoption Adjustment Member | Common Stock | Additional Paid-in CapitalCumulative Effect Period Of Adoption Adjustment Member | Additional Paid-in Capital | Retained EarningsCumulative Effect Period Of Adoption Adjustment Member | Retained Earnings | Accumulated Other Comprehensive IncomeCumulative Effect Period Of Adoption Adjustment Member | Accumulated Other Comprehensive Income | Unearned Stock CompensationCumulative Effect Period Of Adoption Adjustment Member | Unearned Stock Compensation | Treasury StockCumulative Effect Period Of Adoption Adjustment Member | Treasury Stock | Noncontrolling Interests in SubsidiaryCumulative Effect Period Of Adoption Adjustment Member | Noncontrolling Interests in Subsidiary | Cumulative Effect Period Of Adoption Adjustment Member | Total |
Balances at Sep. 30, 2018 | $ 26 | $ 27,630 | $ 76,523 | $ 382 | $ (479) | $ (5,269) | $ 1,432 | $ 100,245 | ||||||||
Net Income | 0 | 0 | 16,177 | 0 | 0 | 0 | 818 | 16,995 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | 6,914 | 0 | 0 | 0 | 6,914 | ||||||||
Common stock dividends | 0 | 0 | (1,472) | 0 | 0 | 0 | 0 | (1,472) | ||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (2,046) | (2,046) | ||||||||
Restricted stock grants, net of forfeitures | 0 | 141 | 0 | 0 | (141) | 0 | 0 | |||||||||
Stock compensation expense | 0 | 72 | 0 | 0 | 174 | 0 | 0 | 246 | ||||||||
Stock option exercises | 0 | (349) | 0 | 0 | 0 | 1,297 | 0 | 948 | ||||||||
Purchase of treasury shares | 0 | 0 | 0 | 0 | 0 | (573) | 0 | (573) | ||||||||
Balances at Sep. 30, 2019 | 26 | 27,494 | 91,228 | 7,296 | (446) | (4,545) | 204 | 121,257 | ||||||||
Net Income | 0 | 0 | 33,354 | 0 | 0 | 0 | 727 | 34,081 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | 3,913 | 0 | 0 | 0 | 3,913 | ||||||||
Common stock dividends | 0 | 0 | (1,590) | 0 | 0 | 0 | 0 | (1,590) | ||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (638) | (638) | ||||||||
Restricted stock grants | 0 | 95 | 0 | 0 | (95) | 0 | 0 | |||||||||
Stock compensation expense | 0 | 86 | 0 | 0 | 193 | 0 | 0 | 279 | ||||||||
Stock option exercises | 0 | (195) | 0 | 0 | 0 | 594 | 0 | 399 | ||||||||
Purchase of treasury shares | 0 | 0 | 0 | 0 | 0 | (302) | 0 | (302) | ||||||||
Balances at Sep. 30, 2020 | 26 | 27,480 | 123,158 | 11,209 | (348) | (4,253) | 293 | 157,565 | ||||||||
Cumulative effect adjustment, adoption of ASU 2016-02 | $ 0 | $ 0 | $ 166 | $ 0 | $ 0 | $ 0 | $ 0 | $ 166 | 123,158 | |||||||
Net Income | 0 | 0 | 29,567 | 0 | 0 | 0 | 402 | 29,969 | ||||||||
Acquisition of minority interests in Q2 | 0 | (1,874) | 0 | 0 | 0 | 0 | (695) | (2,569) | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | (2,309) | 0 | 0 | 0 | (2,309) | ||||||||
Common stock dividends | 0 | 0 | (2,540) | 0 | 0 | 0 | 0 | (2,540) | ||||||||
Restricted stock forfeitures | 0 | (25) | 0 | 0 | 25 | 0 | 0 | |||||||||
Stock compensation expense | 0 | 92 | 0 | 0 | 185 | 0 | 0 | 277 | ||||||||
Stock option exercises | 0 | 100 | 0 | 0 | 0 | 2 | 0 | 102 | ||||||||
Purchase of treasury shares | 0 | 0 | 0 | 0 | 0 | (118) | 0 | (118) | ||||||||
Three-for-one stock split in the form of a stock dividend | 52 | (52) | 0 | 0 | 0 | 0 | 0 | |||||||||
Balances at Sep. 30, 2021 | $ 78 | $ 25,721 | $ 150,185 | $ 8,900 | $ (138) | $ (4,369) | $ 0 | 180,377 | ||||||||
Cumulative effect adjustment, adoption of ASU 2016-02 | $ 4,600 | $ 150,185 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended | ||
Sep. 30, 2021$ / sharesshares | Sep. 30, 2020$ / sharesshares | Sep. 30, 2019$ / sharesshares | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||
Dividends per share | $ / shares | $ 0.36 | $ 0.22 | $ 0.21 |
Restricted stock grants - shares | 4,308 | ||
Restricted stock forfeitures - shares | 1,500 | 6,897 | |
Stock option exercises, shares | 6,840 | 85,083 | 200,631 |
Purchase of treasury shares, shares | 5,424 | 14,106 | 32,904 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 29,969 | $ 34,081 | $ 16,995 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision (credit) for loan losses | (1,767) | 7,962 | 1,463 |
Depreciation and amortization | 2,300 | 1,858 | 1,684 |
Amortization of premiums and accretion of discounts on securities, net | 799 | 596 | 477 |
Amortization and accretion of fair value adjustments on loans, net | (1,490) | (935) | (664) |
Loans originated for sale | (4,177,003) | (3,679,783) | (939,608) |
Proceeds on sales of loans | 4,347,642 | 3,597,497 | 904,692 |
Net realized and unrealized gain on loans held for sale | (56,677) | (88,738) | (27,485) |
Capitalization of loan servicing rights | (38,659) | (25,508) | (2,274) |
Net change in value of loan servicing rights | 10,084 | 4,021 | 715 |
Net realized and unrealized gain on other real estate owned | (74) | (16) | (78) |
Net (gain) loss on sales of available for sale securities and time deposits | 0 | (7) | 74 |
Increase in cash surrender value of life insurance | (785) | (732) | (580) |
Gain on life insurance | (140) | 0 | 0 |
Net (gain) loss on equity securities | (46) | 19 | (5) |
Net (gain) loss on sale of premises and equipment | (78) | 8 | (31) |
Income from tax credit investments | (32) | (426) | (210) |
Deferred income taxes | 7,856 | 4,494 | 507 |
Stock compensation expense | 277 | 279 | 246 |
(Increase) decrease in accrued interest receivable | 219 | (1,421) | (754) |
Increase (decrease) in accrued interest payable | (425) | (252) | 192 |
Change in other assets and liabilities, net | (7,077) | 7,314 | (81) |
Net Cash Provided By (Used In) Operating Activities | 114,893 | (139,689) | (44,725) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in interest-bearing time deposits | (497) | (1,145) | (1,085) |
Proceeds from sales and maturities of interest-bearing time deposits | 1,225 | 445 | 838 |
Purchase of securities available for sale | (29,517) | (37,809) | (24,448) |
Proceeds from sales of securities available for sale | 0 | 3,180 | 13,948 |
Proceeds from maturities of securities available for sale | 16,737 | 8,235 | 7,710 |
Proceeds from maturities of securities held to maturity | 247 | 248 | 240 |
Principal collected on securities | 4,375 | 6,005 | 18,180 |
Net increase in loans | (26,566) | (304,202) | (108,847) |
Purchase of Federal Reserve Bank stock | 0 | 0 | (634) |
Proceeds from redemption of Federal Reserve Bank stock | 53 | 0 | 0 |
Purchase of Federal Home Loan Bank stock | (2,018) | (4,253) | (2,785) |
Investment in cash surrender value of life insurance | (12,042) | (4,481) | (6,000) |
Proceeds from sale of other real estate owned | 500 | 182 | 178 |
Purchase of premises and equipment | (5,640) | (7,308) | (9,496) |
Proceeds from sales of premises and equipment | 438 | 550 | 74 |
Distributions received from tax credit investments | 0 | 920 | 0 |
Acquisition of minority interests in Q2 | (3,172) | 0 | 0 |
Net Cash Used In Investing Activities | (55,877) | (339,433) | (112,127) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase in deposits | 179,504 | 213,692 | 23,272 |
Net increase (decrease) in federal funds purchased | 0 | (4,000) | 4,000 |
Net decrease in repurchase agreements | 0 | 0 | (1,352) |
Increase (decrease) in Federal Home Loan Bank line of credit | (20,858) | 8,314 | 12,544 |
Proceeds from Federal Home Loan Bank advances | 455,000 | 350,000 | 310,000 |
Repayment of Federal Home Loan Bank advances | (495,000) | (270,000) | (190,000) |
Net increase (decrease) in Federal Reserve PPPLF borrowings | (174,834) | 174,834 | 0 |
Net increase (decrease) in advance payments by borrowers for taxes and insurance | (1,427) | 709 | 688 |
Proceeds from exercise of stock options | 27 | 148 | 408 |
Taxes paid on stock award shares for employees | (41) | (53) | (32) |
Dividends paid on common stock | (1,685) | (1,590) | (1,472) |
Distributions to noncontrolling interests | 0 | (638) | (2,046) |
Net Cash Provided By (Used In) Financing Activities | (59,314) | 471,416 | 156,010 |
Net Decrease in Cash and Cash Equivalents | (298) | (7,706) | (842) |
Cash and cash equivalents at beginning of year | 33,726 | 41,432 | 42,274 |
Cash and Cash Equivalents at End of Year | $ 33,428 | $ 33,726 | $ 41,432 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (1) Nature of Operations First Savings Financial Group, Inc. (the “Company”) is a financial holding company and the parent of First Savings Bank (the “Bank”) and First Savings Insurance Risk Management, Inc. (the “Captive”). The Bank, which is a wholly-owned Indiana-chartered commercial bank subsidiary of the Company, provides a variety of banking services to individuals and business customers through 15 locations in southern Indiana. The Bank attracts deposits primarily from the general public and uses those funds, along with other borrowings, primarily to originate residential mortgage, commercial mortgage, construction, commercial business and consumer loans, and to a lesser extent, to invest in mortgage-backed securities and other securities. The Bank has two wholly owned subsidiaries: First Savings Investments, Inc., a Nevada corporation that manages a securities portfolio and Southern Indiana Financial Corporation, which is currently inactive. On April 25, 2017, the Bank formed Q2 Business Capital, LLC (“Q2”), which is an Indiana limited liability company that specializes in the origination and servicing of U.S. Small Business Administration (“SBA”) loans. The Bank originally owned 51% of Q2’s membership interests. On December 31, 2020, the Bank completed the acquisition of the minority interests in Q2, and Q2 became a wholly-owned subsidiary of the Bank. As part of the acquisition of the minority interests, the Bank paid total consideration of $3.2 million. The acquisition was accounted for as an equity transaction, and resulted in the reclassification of the noncontrolling interests of $695,000, the recognition of net deferred tax assets of $590,000 and a reduction of additional paid-in capital of $1.9 million. The Captive, which is a wholly-owned insurance subsidiary of the Company, is a Nevada corporation that provides property and casualty insurance to the Company, the Bank and the Bank’s active subsidiaries. In addition, the Captive provides reinsurance to 10 other third-party insurance captives for which insurance may not be currently available or economically feasible in the insurance marketplace. Basis of Consolidation and Reclassifications The consolidated financial statements include the accounts of the Company and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America and conform to general practices within the banking industry. Intercompany balances and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. The reclassifications had no effect on net income or stockholders’ equity. Statements of Cash Flows For purposes of the statements of cash flows, the Company has defined cash and cash equivalents as cash on hand, amounts due from banks (including cash items in process of clearing), interest-bearing deposits with other banks having an original maturity of 90 days or less and money market funds. (1 – continued) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate and other assets acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan losses and the valuation of other real estate owned, management obtains independent appraisals for significant properties. A substantial portion of the Company’s loan portfolio consists of single-family residential and commercial real estate loans to customers in the southern Indiana and Louisville, Kentucky metropolitan area. Accordingly, the ultimate collectability of a substantial portion of the Company’s loan portfolio and the recovery of the carrying amount of other real estate owned are susceptible to changes in local market conditions. While management uses available information to recognize losses on loans and other real estate owned, further reductions in the carrying amounts of loans and other real estate owned may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans and other real estate owned. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible the estimated losses on loans and other real estate owned may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Investment Securities Securities Available for Sale (1 – continued) Amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity, adjusted for anticipated prepayments. Unrealized gains and losses, net of tax, on securities available for sale are included in other comprehensive income and the accumulated unrealized holding gains and losses are reported as a separate component of equity until realized. Realized gains and losses on the sale of securities available for sale are determined using the specific identification method and are included in other noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Securities Held to Maturity Declines in the fair value of individual available for sale and held to maturity securities below their amortized cost that are other than temporary result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than amortized cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value. Equity Securities Investments in non-marketable equity securities such as FRB stock and FHLB stock are carried at cost and are classified as restricted securities. The Bank is a member of the FHLB system and is required to own FHLB stock, the amount of which depends on the level of borrowings and other factors. Both cash and stock dividends received from these investments are included in dividend income. Impairment testing on these investments is based on applicable accounting guidance and the cost basis is reduced when impairment is deemed to be other-than-temporary. (1 – continued) Loans Held for Sale The Company has elected to record substantially all residential mortgage loans held for sale at fair value in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 825-10. Net unrealized gains and losses are included in mortgage banking income in the accompanying consolidated statements of income. Realized gains on sales of residential mortgage loans are determined using the specific identification method and are included in mortgage banking income. The Company originates loans to customers under the SBA 7(a) and other programs that generally provide for SBA guarantees of 75% to 90% of each loan. The Company intends to sell the guaranteed portion of the SBA loans. The guaranteed portion of the SBA loans was classified as loans held for sale at September 30, 2021 and 2020. At September 30, 2021 and 2020, SBA loans held for sale totaling $24.1 million and $22.1 million, respectively, were carried at the lower of aggregate cost or fair value. Realized gains and losses on sales of SBA loans held for sale are determined based on the allocation of participating interests sold and retained and are included in net gain on sales of SBA loans in the accompanying consolidated statements of income. Direct loan origination costs and fees related to SBA loans held for sale are deferred upon origination and are recognized as an adjustment to the gain or loss on the date of sale. SBA loans held for sale are sold on a servicing retained basis. During 2021 the Company transferred certain single tenant net lease loans from loans to loans held for sale as it intends to sell the loans on the secondary market. At September 30, 2021, single tenant net lease loans held for sale totaling $23.0 million were carried at the lower of aggregate cost or fair value. Realized gains and losses on sales of single tenant net lease loans held for sale are determined using the specific identification method. Management intends to sell the single tenant net lease loans held for sale on a servicing retained basis. Transfers of Financial Assets The Company accounts for transfers and servicing of financial assets in accordance with FASB ASC 860, Transfers and Servicing (1 – continued) Transfers of a portion of a loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, and the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. The Company sells financial assets in the normal course of business, the majority of which are related to the SBA-guaranteed portion of loans, residential mortgage loan sales through established programs, and commercial loan sales through participation agreements. In accordance with accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. When the Company sells financial assets, it may retain servicing rights and/or other interests in the financial assets. The gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the servicing right recognized, and the consideration received and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests held by the Company are carried at the lower of cost or fair value , with the exception of mortgage servicing rights related to sales of residential mortgage loans, which are carried at fair value. Loans and Allowance for Loan Losses Loans Held for Investment Loans are stated at unpaid principal balances, less net deferred loan fees and the allowance for loan losses. Loan origination and commitment fees, as well as certain direct costs of underwriting and closing loans, are deferred and amortized as a yield adjustment to interest income over the lives of the related loans using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. Nonaccrual Loans The recognition of income on a loan is discontinued and previously accrued interest is reversed when interest or principal payments become 90 days past due unless, in the opinion of management, the outstanding interest remains collectible. Past due status is determined based on contractual terms. Generally, by applying the cash receipts method, interest income on nonaccrual loans is subsequently recognized only as received until the loan is returned to accrual status. The cash receipts method is used when the likelihood of further loss on the loan is remote. Otherwise, the Company applies the cost recovery method and applies all payments as a reduction of the unpaid principal balance until the loan qualifies for return to accrual status. Interest income on impaired loans is recognized using the cost recovery method, unless the likelihood of further loss is considered remote. A loan is restored to accrual status when all principal and interest payments are brought current and the borrower has demonstrated the ability to make future payments of principal and interest as scheduled, which generally requires that the borrower demonstrate a period of performance of at least six consecutive months. (1 – continued) Loan Charge-Offs For portfolio segments other than consumer loans, the Company’s practice is to charge-off any loan or portion of a loan when the loan is determined by management to be uncollectible due to the borrower’s failure to meet repayment terms, the borrower’s deteriorating or deteriorated financial condition, depreciation of the underlying collateral, the loan’s classification as a loss by regulatory examiners, or for other reasons. A partial charge-off is recorded on a loan when the uncollectibility of a portion of the loan has been confirmed, such as when a loan is discharged in bankruptcy, the collateral is liquidated, a loan is restructured at a reduced principal balance, or other identifiable events that lead management to determine the full principal balance of the loan will not be repaid. A specific reserve is recognized as a component of the allowance for estimated losses on loans individually evaluated for impairment. Partial charge-offs of loans are included in the Company’s historical loss experience used to estimate the general component of the allowance for loan losses as discussed below. Consumer loans not secured by real estate are typically charged off at 90 days past due, or earlier if deemed uncollectible, unless the loans are in the process of collection. Overdrafts are charged off after 45 days past due. Charge-offs are typically recorded on loans secured by real estate when the property is foreclosed upon when the carrying value of the loan exceeds the property’s fair value, less estimated costs to sell. Allowance for Loan Losses The allowance for loan losses reflects management’s judgment of probable incurred loan losses at the balance sheet date. Additions to the allowance for loan losses are made by the provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company evaluates the allowance for loan losses on a quarterly basis based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are individually evaluated for impairment. A specific reserve is established when the underlying discounted collateral value (or present value of estimated future cash flows) of the impaired loan is lower than the carrying value of that loan. The general component covers loans not considered to be impaired. Such loans are pooled by segment and losses are modeled using annualized historical loss experience adjusted for qualitative factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 60-month period with the exception of the SBA loan portfolio which uses a 12-month or 36-month lookback period. (1 – continued) The Company's historical loss experience is then adjusted for qualitative factors that are reviewed on a quarterly basis based on the risks present for each portfolio segment. Management considers changes and trends in the following qualitative loss factors: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in the volume and term of new loan originations; national and local economic trends and conditions; changes in lending policies, procedures and practices; changes in the experience and ability of lending management and other staff; changes in the quality and depth of the Company's loan review system; trends in collateral valuation in the Company’s lending area; and other factors as determined by management. Each qualitative factor is evaluated and a qualitative factor adjustment is applied to the actual historical loss factors in determining the adjusted loss factors used in management’s allowance for loan losses adequacy calculation. During the year ended September 30, 2020, the Company added a qualitative factor adjustment for economic uncertainties related to the novel coronavirus ("COVID-19"). The COVID-19 qualitative factor adjustments were adjusted throughout the years ended September 30, 2021 and 2020 based on the level of cases, vaccination status, loan performance and government guidelines. At September 30, 2021, the Company’s allowance for loan losses totaled $14.3 million, of which $13.1 million related to qualitative factor adjustments including $2.3 million related to the COVID-19 qualitative factor adjustment. At September 30, 2020, the Company's allowance for loan losses totaled $17.0 million, of which $14.8 million related to qualitative factor adjustments including $4.6 million related to the COVID-19 qualitative factor adjustment. Management exercises significant judgment in evaluating the relevant historical loss experience and the qualitative factors. Management also monitors the differences between estimated and actual incurred loan losses for loans considered impaired in order to evaluate the effectiveness of the estimation process and make any changes in the methodology as necessary. The following portfolio segments are considered in the allowance for loan loss analysis: residential real estate, commercial real estate (including single tenant net lease and loans originated through SBA programs), multi-family residential real estate, construction, land and land development, commercial business (including loans originated through SBA programs) and consumer. Residential real estate loans primarily consist of loans to individuals for the purchase or refinance of their primary residence, with a small portion of the segment secured by non-owner-occupied residential investment properties. The risks associated with residential real estate loans are closely correlated to the local housing market and general economic conditions, as repayment of the loans is primarily dependent on the borrower’s or tenant’s personal cash flow and employment status. Commercial real estate loans include the single tenant net lease loans and loans originated through SBA programs in addition to the Company’s core commercial loans, and are comprised of loans secured by various types of collateral including office buildings, warehouses, retail space and mixed use buildings located in the Company’s primary lending area and in other states. Risks related to commercial real estate lending are related to the market value of the property taken as collateral, the underlying cash flows and general economic conditions. Repayment of these loans is generally dependent on the ability of the borrower to attract tenants at lease rates that provide for adequate debt service and can be impacted by general economic conditions, which impact vacancy rates. The Company generally obtains loan guarantees from financially capable parties for commercial real estate loans. Multi-family residential real estate loans primarily consist of loans secured by apartment buildings and other multi-tenant developments generally located in the Company’s primary lending area. Repayment of these loans is primarily dependent on the borrower’s ability to attract tenants and collect rents that provide for adequate debt service. The risks associated with these loans are closely correlated to the local housing market and general economic conditions. (1 – continued) Loans and Allowance for Loan Losses - continued Construction loans consist of single-family residential properties, multi-family properties and commercial projects, and include both owner-occupied and speculative investment properties. Risks inherent in construction lending are related to the market value of the property held as collateral, the cost and timing of constructing or improving a property, the borrower’s ability to use funds generated by a project to service a loan until a project is completed, movements in interest rates and the real estate market during the construction phase, and the ability of the borrower to obtain permanent financing. Land and land development loans primarily consist of loans secured by farmland and vacant land held for long-term investment or development. The risks associated with land and land development loans are related to the market value of the property taken as collateral and the underlying cash flows for loans secured by farmland, and general economic conditions. Commercial business loans include loans originated through SBA programs and lines of credit to businesses, term loans and letters of credit secured by business assets such as equipment, accounts receivable, inventory, or other assets excluding real estate and are generally made to finance capital expenditures or fund operations. Commercial loans contain risks related to the value of the collateral securing the loan and the repayment is primarily dependent upon the financial success and viability of the borrower. As with commercial real estate loans, the Company generally obtains loan guarantees from financially capable parties for commercial business loans. In addition, in an effort to support our communities during the pandemic, the Company participated in the Paycheck Protection Program (“PPP”) and the majority of the Company’s SBA clients applied for participation in the SBA’s PPP loan program. All PPP loans are 100% guaranteed by the SBA. Consumer loans consist primarily of home equity lines of credit and other loans secured by junior liens on the borrower’s personal residence, home improvement loans, automobile and truck loans, boat loans, mobile home loans, loans secured by savings deposits and other personal loans. The risks associated with these loans are related to the local housing market and local economic conditions including the unemployment level. Other than the changes discussed above related to the COVID-19 qualitative factor, there were no significant changes to the Company’s accounting policies or methodology used to estimate the allowance for loan losses during the years ended September 30, 2021, 2020, and 2019. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. (1 – continued) Values for collateral dependent loans are generally based on appraisals obtained from independent licensed real estate appraisers, with adjustments applied for estimated costs to sell the property, estimated costs to complete unfinished or repair damaged property, and other known defects. New appraisals are generally obtained for all significant properties when a loan is identified as impaired. Generally, a property is considered significant if the value of the property is estimated to exceed $250,000. Subsequent appraisals are obtained as needed or if management believes there has been a significant change in the market value of a collateral property securing an impaired loan. In instances where it is not deemed necessary to obtain a new appraisal, management would base its impairment and allowance for loan loss analysis on the original appraisal with adjustments for current conditions based on management’s assessment of market factors and management’s inspection of the property. Troubled Debt Restructurings The modification of a loan is considered to be a troubled debt restructuring (“TDR”) if the debtor is experiencing financial difficulties and the Company grants a concession to the debtor that it would not otherwise consider. By granting the concession, the Company expects to obtain more cash or other value from the debtor, or to increase the probability of receipt, than would be expected by not granting the concession. The concession may include, but is not limited to, reduction of the stated interest rate of the loan, reduction of accrued interest, extension of the maturity date or reduction of the face amount of the debt. A concession will be granted when, as a result of the restructuring, the Company does not expect to collect all amounts due, including interest at the original stated rate. A concession may also be granted if the debtor is not able to access funds elsewhere at a market rate for debt with similar risk characteristics as the restructured debt. The Company’s determination of whether a loan modification is a TDR considers the individual facts and circumstances surrounding each modification. A TDR can involve loans remaining on nonaccrual, moving to nonaccrual or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Generally, a nonaccrual loan that is restructured in a TDR remains on nonaccrual status for a period of at least six months following the restructuring in order to ensure that the borrower performs in accordance with the restructured terms, including consistent and timely payments of at least six consecutive months according to the restructured terms. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. The Company uses the straight line method of computing depreciation at rates adequate to amortize the cost of the applicable assets over their estimated useful lives. Maintenance and repairs are expensed as incurred. The cost and related accumulated depreciation of assets sold, or otherwise disposed of, are removed from the related accounts and any gain or loss is included in earnings. Other Real Estate Owned Other real estate owned includes formally foreclosed property, property obtained via a deed in lieu of foreclosure and former banking facilities held for sale. At the time of acquisition, foreclosed real estate is recorded at its fair value, less estimated costs to sell, which becomes the property’s new cost basis. Any write-downs based on the property’s fair value at the date of acquisition are charged to the allowance for loan losses. After acquisition or the decision to classify property as held for sale, valuations are periodically performed by management and property held for sale is carried at the lower of the new cost basis or fair value, less estimated costs to sell. Costs incurred in maintaining other real estate owned and subsequent impairment adjustments to the carrying amount of a property, if any, are included in noninterest expense. (1 – continued) Cash Surrender Value of Life Insurance The Bank has purchased life insurance policies on certain directors, officers and key employees to help offset costs associated with the Bank’s compensation and benefit programs. The Bank is the owner and is a joint or sole beneficiary of the policies. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Income from the increase in cash surrender value of the policies and income from the recognition of death benefits is reported in noninterest income. Goodwill and Other Intangibles Goodwill recognized in a business combination represents the excess of the fair value of consideration transferred over the fair value of assets acquired and liabilities assumed. Goodwill is evaluated for possible impairment at least annually or more frequently upon the occurrence of an event or change in circumstances that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to: (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. Other intangible assets consist of acquired core deposit intangibles. Core deposit intangibles are amortized over the estimated economic lives of the acquired core deposits. The carrying amount of core deposit intangibles and the remaining estimated economic life are evaluated annually or whenever events or circumstances indicate the carrying amount may not be recoverable or the remaining period of amortization requires revision. Derivative Financial Instruments In connection with the origination of residential mortgage loans to be sold in the secondary market, the Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (i.e., rate lock commitment). The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 15 to 60 days. The Company also enters into forward mortgage loan commitments to sell to various investors to protect itself against exposure to various factors and to reduce sensitivity to interest rate movements. Both the interest rate lock commitments and the related forward mortgage loan sales contracts are considered derivatives and are recorded on the balance sheet at fair value in accordance with FASB ASC 815, Derivatives and Hedging Securities Lending and Financing Arrangements Securities purchased under agreements to resell (reverse repurchase agreements) and securities sold under agreements to repurchase (repurchase agreements) are treated as collateralized lending and borrowing transactions, respectively, and are carried at the amounts at which the securities were initially acquired or sold. (1 – continued) Benefit Plans The Company provides a contributory defined contribution plan available to all eligible employees. The Company also established a leveraged employee stock ownership plan (“ESOP”) on October 6, 2008 that includes substantially all employees. The Company accounts for the ESOP in accordance with FASB ASC 718-40, Employee Stock Ownership Plans Stock Based Compensation The Company has adopted the fair value based method of accounting for stock-based compensation prescribed in FASB ASC 718-20, Compensation – Stock Compensation Income Taxes When income tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while other positions are subject to some degree of uncertainty regarding the merits of th |
RESTRICTION ON CASH AND DUE FRO
RESTRICTION ON CASH AND DUE FROM BANKS | 12 Months Ended |
Sep. 30, 2021 | |
RESTRICTION ON CASH AND DUE FROM BANKS | |
RESTRICTION ON CASH AND DUE FROM BANKS | (2) The Company is required to maintain reserve balances on hand and with the Federal Reserve Bank, which are unavailable for investment but are interest-bearing. In March of 2020, the Federal Reserve Bank reduced the reserve requirement to zero. There were no required reserves for the year ended September 30, 2021. The average amount of required reserve balances was approximately $10.6 million and $20.3 million for the years ended September 30, 2020 and 2019, respectively. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Sep. 30, 2021 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | (3) Investment securities have been classified according to management’s intent. Securities Available for Sale and Held to Maturity The amortized cost of securities available for sale and held to maturity and their approximate fair values are as follows: Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gain Losses Value September 30, 2021: Securities available for sale: U.S. Treasury bills $ 250 $ — $ — $ 250 Agency mortgage-backed 8,143 293 52 8,384 Agency CMO 13,315 235 20 13,530 Privately-issued CMO 729 81 7 803 Privately-issued ABS 721 51 — 772 SBA certificates 2,157 2 21 2,138 Municipal bonds 170,102 11,055 353 180,804 Total securities available for sale $ 195,417 $ 11,717 $ 453 $ 206,681 Securities held to maturity: Agency mortgage-backed $ 64 $ 5 $ — $ 69 Municipal bonds 1,773 212 — 1,985 Total securities held to maturity $ 1,837 $ 217 $ — $ 2,054 (3 – continued) Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gain Losses Value September 30, 2020: Securities available for sale: Agency mortgage-backed $ 7,499 $ 453 $ — $ 7,952 Agency CMO 9,398 407 — 9,805 Privately-issued CMO 886 80 8 958 Privately-issued ABS 884 81 5 960 SBA certificates 639 58 3 694 Municipal bonds 168,472 13,180 56 181,596 Total securities available for sale $ 187,778 $ 14,259 $ 72 $ 201,965 Securities held to maturity: Agency mortgage-backed $ 82 $ 7 $ — $ 89 Municipal bonds 2,020 276 — 2,296 Total securities held to maturity $ 2,102 $ 283 $ — $ 2,385 The amortized cost and fair value of available for sale and held to maturity debt securities as of September 30, 2021 by contractual maturity are shown below. Expected maturities of mortgage and other asset-backed securities may differ from contractual maturities because the mortgages and other assets underlying the obligations may be prepaid without penalty. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Due within one year $ 9,601 $ 9,697 $ 260 $ 285 Due after one year through five years 25,282 26,429 914 1,014 Due after five years through ten years 32,028 34,095 599 686 Due after ten years 103,441 110,833 — — CMO 14,044 14,333 — — ABS 721 772 — — SBA certificates 2,157 2,138 — — Mortgage-backed securities 8,143 8,384 64 69 $ 195,417 $ 206,681 $ 1,837 $ 2,054 (3 – continued) Information pertaining to securities with gross unrealized losses at September 30, 2021 and 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, follows: Number of Gross Investment Fair Unrealized Positions Value Losses (Dollars in thousands) September 30, 2021: Securities available for sale: Continuous loss position less than twelve months: Federal agency mortgage-backed securities 1 $ 3,056 $ 52 Federal agency CMO 2 1,466 20 SBA certificates 1 2,013 20 Municipal bonds 18 13,904 254 Total less than twelve months 22 20,439 346 Continuous loss position more than twelve months: Privately-issued CMO 1 23 7 SBA certificates 1 88 1 Municipal bonds 1 1,902 99 Total more than twelve months 3 2,013 107 Total securities available for sale 25 $ 22,452 $ 453 September 30, 2020: Securities available for sale: Continuous loss position less than twelve months: Privately-issued ABS 1 $ 446 $ 5 Municipal bonds 2 2,444 56 Total less than twelve months 3 2,890 61 Continuous loss position more than twelve months: Privately-issued CMO 1 26 8 SBA certificates 1 188 3 Total more than twelve months 2 214 11 Total securities available for sale 5 $ 3,104 $ 72 At September 30, 2021 and 2020, the Company did not have any securities held to maturity with an unrealized loss. (3 – continued) Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The total available for sale debt securities in loss positions at September 30, 2021, which consisted of Federal agency mortgage-backed securities, Federal agency CMOs, privately-issued CMOs, SBA certificates, and municipal bonds, had depreciated approximately 1.86% from the Company’s amortized cost basis and are fixed and variable rate securities with a weighted-average yield of 1.77% and a weighted-average coupon rate of 2.56% at September 30, 2021. All of the municipal securities are issued by municipal governments, and are generally secured by first mortgage loans and municipal project revenues. The Company evaluates the existence of a potential credit loss component related to the decline in fair value of the privately-issued CMO and ABS portfolios each quarter using an independent third party analysis. At September 30, 2021, the Company held 10 privately-issued CMO and ABS securities acquired in a 2009 bank acquisition with an aggregate amortized cost of $512,000 and fair value of $526,000 that have been downgraded to a substandard regulatory classification due to a downgrade of the security’s credit quality rating by various rating agencies. At September 30, 2021, one privately-issued CMO and one privately-issued ABS were in a loss position and had depreciated approximately 1.87% from the Company’s carrying value . These securities were collateralized by residential mortgage loans, had a total fair value of $384,000 and a total unrealized loss of $7,000 at September 30, 2021, and were rated below investment grade by various rating agencies. Based on the independent third party analysis of the expected cash flows, management has determined that the declines in fair value for these securities are temporary and, as a result, no other-than-temporary impairment is required to be recognized. While the Company does not anticipate additional credit-related impairment losses at September 30, 2021, additional deterioration in market and economic conditions may have an adverse impact on the credit quality in the future and therefore, require additional credit-related impairment charges. The unrealized losses on U.S. government agency mortgage-backed securities and CMOs, SBA certificates and municipal bonds relate principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. As management has the ability to hold debt securities to maturity, or for the foreseeable future if classified as available for sale, no declines are deemed to be other-than-temporary. (3 – continued) The following is a summary of the reported gross gains and losses on sales of available for sale securities and time deposits for the years ended September 30, 2021, 2020 and 2019: (In thousands) 2021 2020 2019 Gross realized gains on sales $ — $ 17 $ 68 Gross realized losses on sales — (10) (142) Net realized gain (loss) on sales of available for sale securities and time deposits $ — $ 7 $ (74) Certain available for sale debt securities were pledged to secure FHLB borrowings at September 30, 2021 and 2020, and may be pledged to secure federal funds borrowings (see Notes 10, 11 and 12). At September 30, 2021 and 2020, there were no holdings of securities of any one issuer, other than the U.S government and its agencies, with an aggregate book value greater than 10% of the Company’s consolidated stockholders’ equity. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Sep. 30, 2021 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | (4) Loans at September 30, 2021 and 2020 consisted of the following: (In thousands) 2021 2020 Real estate mortgage: 1-4 family residential $ 241,425 $ 191,781 Commercial 149,600 141,522 Single tenant net lease 403,692 334,636 SBA 62,805 55,508 Multifamily residential 40,324 42,368 Residential construction 8,330 9,361 Commercial construction 2,717 6,941 Land and land development 10,217 9,403 Commercial business 59,883 60,513 SBA commercial business (1) 80,400 206,807 Consumer 30,563 50,576 Total loans 1,089,956 1,109,416 Deferred loan origination fees and costs, net (2) 281 (2,327) Allowance for loan losses (14,301) (17,026) Loans, net $ 1,075,936 $ 1,090,063 (1) Includes $56.7 million and $180.6 million of PPP loans at September 30, 2021 and 2020, respectively. (2) Includes $757,000 and $3.2 million of net deferred loan fees related to PPP loans at September 30, 2021 and 2020, respectively. At September 30, 2021 and 2020, the net unamortized premium on loans acquired from other financial institutions was $216,000 and $245,000, respectively. (4 – continued) The Company has entered into loan transactions with certain directors, officers and their affiliates (related parties). In the opinion of management, such indebtedness was incurred in the ordinary course of business on substantially the same terms as those prevailing at the time for comparable transactions with other persons and does not involve more than normal risk of collectability or present other unfavorable features. The following is a summary of activity for related party loans for the years ended September 30, 2021 and 2020: (In thousands) 2021 2020 Beginning balance $ 7,716 $ 9,115 New loans and advances 4,832 8,438 Repayments (2,601) (4,162) Loans sold (2,992) (4,250) Reclassifications due to officer and director changes (980) (1,425) Ending balance $ 5,975 $ 7,716 Off-balance-sheet commitments (including commitments to make loans, unused lines of credit and letters of credit) to related parties at September 30, 2021 and 2020 were $3.0 million and $2.6 million, respectively. (4 – continued) The following table provides the components of the recorded investment in loans as of September 30, 2021: Principal Accrued Net Deferred Recorded Loan Interest Loan Origination Investment Recorded Investment in Loans: Balance Receivable Fees and Costs in Loans (In thousands) Residential real estate $ 241,425 $ 821 $ 24 $ 242,270 Commercial real estate 149,600 563 (208) 149,955 Single tenant net lease 403,692 1,369 (123) 404,938 SBA commercial real estate 62,805 475 1,106 64,386 Multifamily 40,324 76 (47) 40,353 Residential construction 8,330 14 (49) 8,295 Commercial construction 2,717 6 (28) 2,695 Land and land development 10,217 18 (6) 10,229 Commercial business 59,883 171 49 60,103 SBA commercial business 80,400 791 (420) 80,771 Consumer 30,563 94 (17) 30,640 $ 1,089,956 $ 4,398 $ 281 $ 1,094,635 Individually Collectively Recorded Evaluated for Evaluated for Investment in Recorded Investment in Loans as Evaluated for Impairment: Impairment Impairment Loans (In thousands) Residential real estate $ 3,067 $ 239,203 $ 242,270 Commercial real estate 1,021 148,934 149,955 Single tenant net lease — 404,938 404,938 SBA commercial real estate 9,153 55,233 64,386 Multifamily 482 39,871 40,353 Residential construction — 8,295 8,295 Commercial construction — 2,695 2,695 Land and land development — 10,229 10,229 Commercial business 1,476 58,627 60,103 SBA commercial business 1,296 79,475 80,771 Consumer 248 30,392 30,640 $ 16,743 $ 1,077,892 $ 1,094,635 (4 – continued) The following table provides the components of the recorded investment in loans as of September 30, 2020: Net Deferred Accrued Loan Recorded Principal Loan Interest Origination Investment Recorded Investment in Loans: Balance Receivable Fees and Costs in Loans (In thousands) Residential real estate $ 191,781 $ 644 $ (156) $ 192,269 Commercial real estate 141,522 812 (197) 142,137 Single tenant net lease 334,636 1,198 (234) 335,600 SBA commercial real estate 55,508 387 1,082 56,977 Multifamily 42,368 139 (37) 42,470 Residential construction 9,361 25 (28) 9,358 Commercial construction 6,941 24 (26) 6,939 Land and land development 9,403 20 (11) 9,412 Commercial business 60,513 186 43 60,742 SBA commercial business 206,807 975 (2,740) 205,042 Consumer 50,576 175 (23) 50,728 $ 1,109,416 $ 4,585 $ (2,327) $ 1,111,674 Individually Collectively Recorded Evaluated for Evaluated for Investment in Recorded Investment in Loans as Evaluated for Impairment: Impairment Impairment Loans (In thousands) Residential real estate $ 5,359 $ 186,910 $ 192,269 Commercial real estate 1,134 141,003 142,137 Single tenant net lease — 335,600 335,600 SBA commercial real estate 6,927 50,050 56,977 Multifamily 698 41,772 42,470 Residential construction — 9,358 9,358 Commercial construction — 6,939 6,939 Land and land development 2 9,410 9,412 Commercial business 1,670 59,072 60,742 SBA commercial business 695 204,347 205,042 Consumer 199 50,529 50,728 $ 16,684 $ 1,094,990 $ 1,111,674 (4 – continued) The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of September 30, 2021 and 2020: Individually Collectively Evaluated for Evaluated for Ending Impairment Impairment Balance (In thousands) 2021: Residential real estate $ — $ 1,438 $ 1,438 Commercial real estate — 2,806 2,806 Single tenant net lease — 2,422 2,422 SBA commercial real estate 114 3,361 3,475 Multifamily — 518 518 Residential construction — 191 191 Commercial construction — 63 63 Land and land development — 235 235 Commercial business — 1,284 1,284 SBA commercial business 18 1,328 1,346 Consumer 1 522 523 $ 133 $ 14,168 $ 14,301 2020: Residential real estate $ 30 $ 1,225 $ 1,255 Commercial real estate — 3,058 3,058 Single tenant net lease — 3,017 3,017 SBA commercial real estate 1,366 2,788 4,154 Multifamily — 772 772 Residential construction — 243 243 Commercial construction — 181 181 Land and land development — 243 243 Commercial business — 1,449 1,449 SBA commercial business 47 1,492 1,539 Consumer — 1,115 1,115 $ 1,443 $ 15,583 $ 17,026 (4 – continued) The following table presents the activity in the allowance for loan losses by portfolio segment for the years ended September 30, 2021 and 2020: Beginning Provisions Ending Balance (Credits) Charge-Offs Recoveries Balance (In thousands) 2021: Residential real estate $ 1,255 $ 170 $ (11) $ 24 $ 1,438 Commercial real estate 3,058 (252) — — 2,806 Single tenant net lease 3,017 (595) — — 2,422 SBA commercial real estate 4,154 234 (936) 23 3,475 Multifamily 772 (254) — — 518 Residential construction 243 (52) — — 191 Commercial construction 181 (118) — — 63 Land and land development 243 (8) — — 235 Commercial business 1,449 (170) — 5 1,284 SBA commercial business 1,539 (211) (21) 39 1,346 Consumer 1,115 (511) (156) 75 523 $ 17,026 $ (1,767) $ (1,124) $ 166 $ 14,301 2020: Residential real estate $ 317 $ 945 $ (36) $ 29 $ 1,255 Commercial real estate 2,540 614 (102) 6 3,058 Single tenant net lease 1,675 1,342 — — 3,017 SBA commercial real estate 2,293 2,175 (360) 46 4,154 Multifamily 478 294 — — 772 Residential construction 248 (5) — — 243 Commercial construction 67 114 — — 181 Land and land development 209 28 — 6 243 Commercial business 889 567 (38) 31 1,449 SBA commercial business 750 1,109 (396) 76 1,539 Consumer 574 779 (238) — 1,115 $ 10,040 $ 7,962 $ (1,170) $ 194 $ 17,026 (4 – continued) The following table presents the activity in the allowance for loan losses by portfolio segment for the year ended September 30, 2019: Beginning Provisions Balance (Credits) Charge-Offs Recoveries Ending Balance (In thousands) 2019: Residential real estate $ 278 $ 30 $ (21) $ 30 $ 317 Commercial real estate 2,493 45 — 2 2,540 Single tenant net lease 2,843 (1,168) — — 1,675 SBA commercial real estate 1,581 1,286 (574) — 2,293 Multifamily 195 283 — — 478 Residential construction 388 (140) — — 248 Commercial construction 96 (29) — — 67 Land and land development 210 (1) — — 209 Commercial business 647 237 (8) 13 889 SBA commercial business 394 427 (71) — 750 Consumer 198 493 (174) 57 574 $ 9,323 $ 1,463 $ (848) $ 102 $ 10,040 (4 – continued) The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2021. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended September 30, 2021. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 3,002 $ 3,551 $ — $ 4,383 $ 68 Commercial real estate 1,021 1,092 — 1,148 29 Single tenant net lease — — — — — SBA commercial real estate 8,184 8,873 — 4,738 — Multifamily 482 539 — 638 — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — 1 — Commercial business 1,476 1,559 — 1,664 3 SBA commercial business 1,278 1,534 — 820 — Consumer 103 97 — 90 2 $ 15,546 $ 17,245 $ — $ 13,482 $ 102 Loans with an allowance recorded: Residential real estate $ 65 $ 65 $ — $ 108 $ — Commercial real estate — — — — — Single tenant net lease — — — — — SBA commercial real estate 969 1,394 114 3,389 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business — — — 1 — SBA commercial business 18 21 18 248 — Consumer 145 144 1 169 — $ 1,197 $ 1,624 $ 133 $ 3,915 $ — Total: Residential real estate $ 3,067 $ 3,616 $ — $ 4,491 $ 68 Commercial real estate 1,021 1,092 — 1,148 29 Single tenant net lease — — — — — SBA commercial real estate 9,153 10,267 114 8,127 — Multifamily 482 539 — 638 — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — 1 — Commercial business 1,476 1,559 — 1,665 3 SBA commercial business 1,296 1,555 18 1,068 — Consumer 248 241 1 259 2 $ 16,743 $ 18,869 $ 133 $ 17,397 $ 102 (4 – continued) The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2020. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended September 30, 2020. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 5,185 $ 5,697 $ — $ 5,411 $ 127 Commercial real estate 1,134 1,185 — 3,914 167 Single tenant net lease — — — — — SBA commercial real estate 1,245 1,178 — 586 — Multifamily 698 700 — 421 — Residential construction — — — — — Commercial construction — — — — — Land and land development 2 1 — 1 — Commercial business 1,670 1,675 — 745 1 SBA commercial business 322 416 — 250 — Consumer 61 63 — 72 3 $ 10,317 $ 10,915 $ — $ 11,400 $ 298 Loans with an allowance recorded: Residential real estate $ 174 $ 175 $ 30 $ 59 $ — Commercial real estate — — — 20 — Single tenant net lease — — — — — SBA commercial real estate 5,682 6,086 1,366 5,048 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business — — — 328 — SBA commercial business 373 399 47 143 — Consumer 138 138 — 154 — $ 6,367 $ 6,798 $ 1,443 $ 5,752 $ — Total: Residential real estate $ 5,359 $ 5,872 $ 30 $ 5,470 $ 127 Commercial real estate 1,134 1,185 — 3,934 167 Single tenant net lease — — — — — SBA commercial real estate 6,927 7,264 1,366 5,634 — Multifamily 698 700 — 421 — Residential construction — — — — — Commercial construction — — — — — Land and land development 2 1 — 1 — Commercial business 1,670 1,675 — 1,073 1 SBA commercial business 695 815 47 393 — Consumer 199 201 — 226 3 $ 16,684 $ 17,713 $ 1,443 $ 17,152 $ 298 (4 – continued) The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2019. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended September 30, 2019. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 4,438 $ 4,967 $ — $ 5,037 $ 115 Commercial real estate 5,282 5,264 — 6,225 305 Single tenant net lease — — — — — SBA commercial real estate 119 144 — 112 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — 6 — Commercial business 105 106 — 183 7 SBA commercial business — — — 32 — Consumer 78 81 — 107 4 $ 10,022 $ 10,562 $ — $ 11,702 $ 431 Loans with an allowance recorded: Residential real estate $ 10 $ 7 $ 10 $ 122 $ — Commercial real estate — — — 10 — Single tenant net lease — — — — — SBA commercial real estate 2,246 2,637 512 2,116 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business — — — 10 — SBA commercial business — — — 18 — Consumer 156 155 23 157 — $ 2,412 $ 2,799 $ 545 $ 2,433 $ — Total: Residential real estate $ 4,448 $ 4,974 $ 10 $ 5,159 $ 115 Commercial real estate 5,282 5,264 — 6,235 305 Single tenant net lease — — — — — SBA commercial real estate 2,365 2,781 512 2,228 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — 6 — Commercial business 105 106 — 193 7 SBA commercial business — — — 50 — Consumer 234 236 23 264 4 $ 12,434 $ 13,361 $ 545 $ 14,135 $ 431 (4 – continued) Nonperforming loans consist of nonaccrual loans and loans over 90 days past due and still accruing interest. The following table presents the recorded investment in nonperforming loans at September 30, 2021 and 2020: At September 30, 2021 At September 30, 2020 Loans 90+ Loans 90+ Days Total Days Total Nonaccrual Past Due Nonperforming Nonaccrual Past Due Nonperforming Loans Still Accruing Loans Loans Still Accruing Loans (In thousands) Residential real estate $ 1,894 $ — $ 1,894 $ 2,797 $ — $ 2,797 Commercial real estate 599 — 599 685 — 685 Single tenant net lease — — — — — — SBA commercial real estate 9,153 472 9,625 6,927 — 6,927 Multifamily 482 — 482 698 — 698 Residential construction — — — — — — Commercial construction — — — — — — Land and land development — — — 2 — 2 Commercial business 1,370 — 1,370 1,668 — 1,668 SBA commercial business 1,296 — 1,296 695 — 695 Consumer 206 — 206 143 — 143 Total $ 15,000 $ 472 $ 15,472 $ 13,615 $ — $ 13,615 The following table presents the aging of the recorded investment in past due loans at September 30, 2021: 30-59 Days 60-89 Days 90+ Days Total Total Past Due Past Due Past Due Past Due Current Loans (In thousands) Residential real estate $ 818 $ 352 $ 347 $ 1,517 $ 240,753 $ 242,270 Commercial real estate — — 599 599 149,356 149,955 Single tenant net lease — — — — 404,938 404,938 SBA commercial real estate — 208 4,990 5,198 59,188 64,386 Multifamily — — — — 40,353 40,353 Residential construction — — — — 8,295 8,295 Commercial construction — — — — 2,695 2,695 Land and land development — — — — 10,229 10,229 Commercial business — — 3 3 60,100 60,103 SBA commercial business 18 104 848 970 79,801 80,771 Consumer 33 20 70 123 30,517 30,640 Total $ 869 $ 684 $ 6,857 $ 8,410 $ 1,086,225 $ 1,094,635 (4 – continued) The following table presents the aging of the recorded investment in past due loans at September 30, 2020: 30-59 Days 60-89 Days 90+ Days Total Total Past Due Past Due Past Due Past Due Current Loans (In thousands) Residential real estate $ 1,693 $ 480 $ 1,631 $ 3,804 $ 188,465 $ 192,269 Commercial real estate 109 — 685 794 141,343 142,137 Single tenant net lease — — — — 335,600 335,600 SBA commercial real estate — — 1,874 1,874 55,103 56,977 Multifamily — — — — 42,470 42,470 Residential construction — — — — 9,358 9,358 Commercial construction — — — — 6,939 6,939 Land and land development — — 2 2 9,410 9,412 Commercial business 63 — — 63 60,679 60,742 SBA commercial business 373 — 322 695 204,347 205,042 Consumer 233 59 4 296 50,432 50,728 Total $ 2,471 $ 539 $ 4,518 $ 7,528 $ 1,104,146 $ 1,111,674 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, public information, historical payment experience, credit documentation, and current economic trends, among other factors. The Company classifies loans based on credit risk at least quarterly. The Company uses the following regulatory definitions for risk ratings: Special Mention: Substandard: Doubtful: Loss: (4 – continued) Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table presents the recorded investment in loans by risk category as of September 30, 2021: Special September 30, 2021: Pass Mention Substandard Doubtful Loss Total (In thousands) Residential real estate $ 240,078 $ — $ 2,018 $ 174 $ — $ 242,270 Commercial real estate 143,031 4,059 2,865 — — 149,955 Single tenant net lease 404,938 — — — — 404,938 SBA commercial real estate 45,465 5,343 10,339 3,239 — 64,386 Multifamily 39,871 — 482 — — 40,353 Residential construction 8,295 — — — — 8,295 Commercial construction 2,695 — — — — 2,695 Land and land development 10,229 — — — — 10,229 Commercial business 58,583 — 1,520 — — 60,103 SBA commercial business 70,019 6,914 3,808 30 — 80,771 Consumer 30,570 — 70 — — 30,640 Total $ 1,053,774 $ 16,316 $ 21,102 $ 3,443 $ — $ 1,094,635 The following table presents the recorded investment in loans by risk category as of September 30, 2020: Special September 30, 2020: Pass Mention Substandard Doubtful Loss Total (In thousands) Residential real estate $ 188,707 $ — $ 3,435 $ 127 $ — $ 192,269 Commercial real estate 133,685 4,112 4,340 — — 142,137 Single tenant net lease 335,600 — — — — 335,600 SBA commercial real estate 38,124 6,518 12,335 — — 56,977 Multifamily 41,772 — 698 — — 42,470 Residential construction 9,358 — — — — 9,358 Commercial construction 6,939 — — — — 6,939 Land and land development 9,410 — 2 — — 9,412 Commercial business 58,707 235 1,800 — — 60,742 SBA commercial business 200,578 294 4,170 — — 205,042 Consumer 50,701 — 27 — — 50,728 Total $ 1,073,581 $ 11,159 $ 26,807 $ 127 $ — $ 1,111,674 (4 – continued) Troubled Debt Restructurings The following table summarizes TDRs by accrual status at September 30, 2021 and 2020. There was no specific reserve included in the allowance for loan losses related to TDRs at September 30, 2021. There was $538,000 of specific reserve included in the allowance for loan losses related to TDRs at September 30, 2020. Accruing Nonaccrual Total (In thousands) September 30, 2021: Residential real estate $ 1,173 $ — $ 1,173 Commercial real estate 422 465 887 SBA commercial real estate — 3,240 3,240 Multifamily — 482 482 Commercial business 106 1,367 1,473 Consumer 42 — 42 Total $ 1,743 $ 5,554 $ 7,297 September 30, 2020: Residential real estate $ 2,562 $ 116 $ 2,678 Commercial real estate 449 512 961 SBA commercial real estate — 3,800 3,800 Multifamily — 698 698 Commercial business 2 1,668 1,670 Consumer 56 — 56 Total $ 3,069 $ 6,794 $ 9,863 (4 – continued) There were no TDRs that were restructured during the year ended September 30, 2019. The following table summarizes information in regard to TDRs that were restructured during the years ended September 30, 2021 and 2020. Pre- Post- Modification Modification Number of Principal Principal Loans Balance Balance (Dollars in thousands) September 30, 2021: Commercial business 1 $ 126 $ 126 Total 1 $ 126 $ 126 September 30, 2020: Residential real estate 1 $ 1,099 $ 1,100 SBA commercial real estate 1 3,832 3,832 Multifamily 2 700 700 Commercial business 9 1,737 1,737 Total 13 $ 7,368 $ 7,369 At both September 30, 2021 and 2020, the Company had committed to lend $1,000 to customers with outstanding loans classified as TDRs. For the TDRs listed above, the terms of modification included temporary interest-only payment periods, reduction of the stated interest rate, extension of the maturity date, deferral of the contractual principal and interest payments, and the renewal of matured loans where the debtor was unable to access funds elsewhere at a market interest rate for debt with similar risk characteristics. There were principal charge-offs totaling $457,000 recorded as a result of TDRs during the year ended September 30, 2021. There were no principal charge-offs recorded as a result of TDRs during the years ended September 30, 2020 and 2019. Provisions for loan losses related to TDRs totaled $538,000 for the year ended September 30, 2020. There were no provisions for loan losses related to TDRs for the years ended September 30, 2021 and 2019. In the event that a TDR subsequently defaults, the Company evaluates the restructuring for possible impairment. As a result, the related allowance for loan losses may be increased or charge-offs may be taken to reduce the carrying amount of the loan. During the year ended September 30, 2019, the Company had one TDR that was modified within the previous twelve months for which there was a payment default (defined as more than 90 days past due or in the process of foreclosure). The outstanding balance of that TDR at September 30, 2019 was $114,000. During the years ended September 30, 2021 and 2020, the Company did not have any TDRs that were modified within the previous twelve months for which there was a payment default (defined as more than 90 days past due or in the process of foreclosure). (4 – continued) On March 22, 2020, the federal banking agencies issued an "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus". This guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance indicates that, in consultation with the FASB, the federal banking agencies concluded that short-term modifications (e.g., six months) made on a good faith basis to borrowers who were current as of the implementation date of a relief program are not TDRs. The Coronavirus Aid, Relief and Economic Security ("CARES") Act was passed by Congress on March 27, 2020. The CARES Act also addressed COVID-19 related modifications and specified that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. The Consolidated Appropriations Act of 2021, signed into law on December 27, 2020, further extended the relief from TDR accounting for qualified modifications to the earlier of January 1, 2022 or 60 days after the national emergency concerning COVID-19 terminates. At September 30, 2021, two mortgage loans totaling $175,000 remained under the Company’s payment extension program or a loan forbearance agreement. These payment extensions or loan forbearance agreements are generally for periods of three months or less, but may be extended if the borrower continues to be impacted by the COVID-19 pandemic. SBA Loan Servicing Rights The Company originates loans to commercial customers under the SBA 7(a) and other programs, and sells the guaranteed portion of the SBA loans with servicing retained. Loan servicing rights on originated SBA loans that have been sold are initially recorded at fair value. Capitalized SBA servicing rights are then amortized in proportion to and over the period of estimated net servicing income. Impairment of SBA servicing rights is assessed using the present value of estimated future cash flows. The aggregate fair value of SBA loan servicing rights at September 30, 2021 and 2020 approximated its carrying value. A valuation model employed by an independent third party calculates the present value of future cash flows and is used to estimate fair value at the date of sale and on a quarterly basis for impairment analysis purposes. Management periodically compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Key assumptions used to estimate the fair value of the SBA loan servicing rights at September 30, 2021 and 2020 were as follows: Range of Assumption (Weighted Average) Assumption 2021 2020 Discount rate 4.57% to 22.34% (9.97%) 3.58% to 19.86% (8.36%) Prepayment rate 8.30% to 24.51% (15.98%) 8.69% to 26.68% (17.46%) For purposes of impairment, risk characteristics such as interest rate, loan type, term and investor type are used to stratify the SBA loan servicing rights. Impairment is recognized through a valuation allowance to the extent that fair value is less than the carrying amount. Changes in the valuation allowance are reported in other noninterest income in the consolidated statements of income. The unpaid principal balance of SBA loans serviced for others was $244.8 million, $209.1 million and $165.0 million at September 30, 2021, 2020 and 2019, respectively. An analysis of loan servicing fees on SBA loans for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Late fees and ancillary fees earned $ 88 $ 54 $ 41 Net servicing income 2,171 1,806 1,245 SBA net servicing fees $ 2,259 $ 1,860 $ 1,286 (4 – continued) Contractually specified late fees and ancillary fees earned on SBA loans are included in interest income on loans in the consolidated statements of income. Net servicing income (contractually specified servicing fees offset by direct servicing expenses) related to SBA loans are included in other noninterest income in the consolidated statements of income. An analysis of SBA loan servicing rights for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Balance as of October 1 $ 3,748 $ 3,030 $ 2,405 Servicing rights capitalized 1,980 1,450 1,334 |
INVESTMENT IN HISTORIC TAX CRED
INVESTMENT IN HISTORIC TAX CREDIT ENTITY | 12 Months Ended |
Sep. 30, 2021 | |
INVESTMENT IN HISTORIC TAX CREDIT ENTITY | |
INVESTMENT IN HISTORIC TAX CREDIT ENTITY | (5) On October 15, 2014, the Bank entered into an agreement to participate in the rehabilitation of a certified historic structure located in Louisville, Kentucky with a regional commercial developer. As part of the agreement, the Bank committed to invest $4.2 million into a limited liability company organized in the state of Kentucky by the commercial developer, for which it received a 99% equity interest in the entity and will receive an allocation of 99% of the operating profit and losses and any historic tax credits generated by the entity. The tax credits initially expected to be allocated to the Bank include federal rehabilitation investment credits totaling $4.7 million available under Internal Revenue Code Section 47. Subsequently, during the quarter ended March 31, 2017, the estimate of tax credits increased to $5.0 million and the Bank’s investment in equity increased to $4.5 million, or 90% of the anticipated credits to be received. The Bank’s investment in the historic tax credit entity is accounted for using the equity method of accounting. During the years ended September 30, 2021, 2020 and 2019, the Bank recognized income related to distributions from the historic tax credit entity of $32,000, $426,000 and $210,000, respectively. The Bank sold its interest in the historic tax credit entity effective October 1, 2021. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2021 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | (6) Premises and equipment consisted of the following at September 30, 2021 and 2020: (In thousands) 2021 2020 Land and land improvements $ 4,561 $ 4,071 Office buildings 23,826 20,062 Leasehold improvements 66 66 Furniture, fixtures and equipment 9,206 8,036 Construction in progress 400 1,057 38,059 33,292 Less: accumulated depreciation (10,390) (8,880) Totals $ 27,669 $ 24,412 Depreciation expense recognized for premises and equipment for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Depreciation expense $ 2,023 $ 1,576 $ 1,305 In September 2016, the Bank sold property in conjunction with the sale of a real estate development. The Bank’s property sold in the transaction consisted of a retail branch operated by the Bank and other retail space leased to a third-party tenant. In accordance with the purchase and sale agreement, the Bank executed a lease agreement with the buyer to lease back the portion of the property consisting of the retail branch. The lease has an initial term of 10 years and may be extended for up to six consecutive five-year periods. The Bank is accounting for the leaseback as an operating lease. The total gain realized on the sale of the property was $471,000, with $307,000 attributable to the retail branch property operated by the Bank and $164,000 attributable to the other retail space. The gain on the other retail space was recognized in noninterest income in the consolidated statements of income in 2016. The gain attributable to the retail branch property was deferred and had a remaining balance of $218,000 at September 30, 2019. On October 1, 2019, the Company adopted FASB ASC 842 and all subsequent updates that modified FASB ASC 842, which resulted in the recognition of the remaining deferred gain through a cumulative-effect adjustment to retained earnings. See Note 18 for additional information regarding the Company’s leases. |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Sep. 30, 2021 | |
OTHER REAL ESTATE OWNED | |
OTHER REAL ESTATE OWNED | (7) Other real estate owned asset activity was as follows for the years ended September 30, 2021, 2020 and 2019: (In thousands) 2021 2020 2019 Balance as of October 1 $ 1,728 $ 1,893 $ 103 Transfers from loans to other real estate owned 426 — 114 Transfers from premises and equipment to REO — — 1,893 Sales (426) (165) (217) Balance as of September 30 $ 1,728 $ 1,728 $ 1,893 At September 30, 2021 and 2020, other real estate owned did not include any residential real estate properties where physical possession has been obtained. The recorded investment in consumer mortgage loans secured by residential real estate properties where formal foreclosure proceedings are in process at September 30, 2021 and 2020 was $124,000 and $1.3 million, respectively. Net (gain) loss on other real estate owned for the years ended September 30, 2021, 2020 and 2019 was as follows: (In thousands) 2021 2020 2019 Net gain on sales $ (74) $ (16) $ (78) Operating expenses, net of rental income 10 15 21 $ (64) $ (1) $ (57) |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Sep. 30, 2021 | |
GOODWILL AND OTHER INTANGIBLES | |
GOODWILL AND OTHER INTANGIBLES | (8) Goodwill and the core deposit intangibles acquired in the acquisitions of Community First Bank (“Community First”) on September 30, 2009, the First Federal Savings Bank of Elizabethtown, Inc. (“First Federal”) branches on July 6, 2012, and Dearmin Bancorp, Inc. (“Dearmin”) and its majority owned subsidiary, The First National Bank of Odon (“FNBO”) on February 9, 2018, are evaluated for impairment at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the carrying amount is greater than its fair value. No impairment of goodwill or the core deposit intangibles was recognized during 2021, 2020, or 2019. The changes in the carrying amount of goodwill for the years ended September 30, 2021, 2020 and 2019 are summarized as follows: (In thousands) 2021 2020 2019 Beginning balance $ 9,848 $ 9,848 $ 9,848 Acquisition of Dearmin/FNBO — — — Ending balance $ 9,848 $ 9,848 $ 9,848 The following is a summary of other intangible assets subject to amortization: (In thousands) 2021 2020 Core deposit intangible acquired in Community First acquisition $ 2,741 $ 2,741 Core deposit intangible acquired in First Federal branch acquisition 566 566 Core deposit intangible acquired in Dearmin/FNBO acquisition 1,487 1,487 Less accumulated amortization (3,806) (3,592) Ending balance $ 988 $ 1,202 Amortization expense on intangibles for the years ended September 30, 2021, 2020 and 2019 is summarized as follows: (In thousands) 2021 2020 2019 Amortization expense $ 214 $ 214 $ 312 Estimated amortization expense for the core deposit intangibles for each of the ensuing five years and in the aggregate is as follows: Years ending September 30: (In thousands) 2022 $ 214 2023 214 2024 163 2025 163 2026 163 2027 and thereafter 71 Total $ 988 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Sep. 30, 2021 | |
DEPOSITS | |
DEPOSITS | (9) Deposits at September 30, 2021 and 2020 consisted of the following: (In thousands) 2021 2020 Noninterest-bearing demand deposits $ 291,039 $ 242,673 NOW accounts 315,169 218,581 Money market accounts 222,972 143,867 Savings accounts 162,033 142,609 Retail time deposits 136,309 168,276 Brokered time deposits 70,058 54,688 Reciprocal time deposits 30,000 77,382 Total $ 1,227,580 $ 1,048,076 The aggregate amount of time deposit accounts with balances that met or exceeded the Federal Deposit Insurance Corporation (“FDIC”) insurance limit of $250,000 was $29.8 million and $33.6 million at September 30, 2021 and 2020, respectively. At September 30, 2021, scheduled maturities of time deposits were as follows: Years ending September 30: (In thousands) 2022 $ 189,007 2023 16,448 2024 11,740 2025 7,213 2026 11,959 Total $ 236,367 The Bank held deposits for related parties of $14.7 million and $9.4 million at September 30, 2021 and 2020, respectively. |
FEDERAL FUNDS PURCHASED
FEDERAL FUNDS PURCHASED | 12 Months Ended |
Sep. 30, 2021 | |
FEDERAL FUNDS PURCHASED | |
FEDERAL FUNDS PURCHASED | (10) The Bank has entered into a federal funds purchased line of credit facility with another financial institution that established a line of credit not to exceed the lesser of $20 million or 25% of the Bank’s equity capital, excluding reserves. Availability under the line of credit is subject to continued borrower eligibility and expires on June 30, 2022 The Bank has also entered into a separate federal funds purchased line of credit facility with another financial institution that established a discretionary line of credit not to exceed $22 million. The line of credit is intended to support short-term liquidity needs. At September 30, 2021 and 2020, the Bank had no outstanding federal funds purchased under the facility. The Bank has also entered into a separate federal funds purchased line of credit facility with another financial institution that established a discretionary line of credit not to exceed $15 million. The line of credit is intended to support short-term liquidity needs. At September 30, 2021 and 2020, the Bank had no outstanding federal funds purchased under the facility. |
REPURCHASE AGREEMENTS
REPURCHASE AGREEMENTS | 12 Months Ended |
Sep. 30, 2021 | |
REPURCHASE AGREEMENTS | |
REPURCHASE AGREEMENTS | (11) Repurchase agreements include retail repurchase agreements representing overnight borrowings from deposit customers. There we no repurchase agreements outstanding as of September 30, 2021 and 2020. Information concerning borrowings under retail repurchase agreements as of and for the years ended September 30, 2021,2020 and 2019 is summarized as follows: (Dollars in thousands) 2021 2020 2019 Weighted average interest rate during the year — % — % 0.25 % Average balance during the year — — $ 1,075 Maximum month-end balance during the year — — 1,354 There were no available for sale securities underlying the repurchase agreements at September 30, 2021 and 2020. |
BORROWINGS FROM FEDERAL HOME LO
BORROWINGS FROM FEDERAL HOME LOAN BANK | 12 Months Ended |
Sep. 30, 2021 | |
BORROWINGS FROM FEDERAL HOME LOAN BANK | |
BORROWINGS FROM FEDERAL HOME LOAN BANK | (12) At September 30, 2021 and 2020 borrowings from the FHLB were as follows: 2021 2020 Weighted Weighted Average Average (Dollars in thousands) Rate Amount Rate Amount Advances maturing in: 2021 — % $ — 1.26 % $ 40,000 2022 2.01 10,000 2.01 10,000 2023 — — — — 2024 2.02 50,000 2.02 50,000 2025 1.51 10,000 1.51 10,000 2026 and beyond 0.81 180,000 0.81 180,000 Total advances 250,000 290,000 Line of credit balance 0.43 — 0.50 20,858 Total borrowings from FHLB $ 250,000 $ 310,858 The Bank entered into an Advances, Pledge and Security Agreement with the FHLB, allowing the Bank to initiate advances from the FHLB. The advances are secured under a blanket collateral agreement. At September 30, 2021, the eligible blanket collateral included residential mortgage loans with a carrying value of $280.4 million and commercial real estate loans with a carrying value of $477.1 million. There were no pledged available for sale securities at September 30, 2021. On August 14, 2020, the Bank entered into an Overdraft Line of Credit Agreement with the FHLB which established a line of credit not to exceed $50.0 million secured under the blanket collateral agreement. This agreement expires on January 21, 2022. At September 30, 2021, there was no outstanding balance under this agreement. On June 19, 2014, the Bank entered into a Letter of Credit Agreement with the FHLB which established a letter of credit not to exceed $3.3 million secured under the blanket collateral agreement. The agreement had an initial expiration date of July 1, 2015 and is automatically extended for one additional year for successive one-year periods, not to extend beyond July 3, 2034. At September 30, 2021, the maximum amount available under the letter of credit was $2.1 million, and there was no outstanding balance under this agreement. On May 31, 2017, the Bank entered into a Letter of Credit Agreement with the FHLB which established a letter of credit not to exceed $2.2 million. The agreement had an initial expiration date of May 31, 2018 and is automatically extended for one additional year for successive one-year periods, not to extend beyond June 1, 2037. At September 30, 2021, the maximum amount available under the letter of credit was $1.9 million, and there was no outstanding balance under this agreement. |
OTHER BORROWINGS
OTHER BORROWINGS | 12 Months Ended |
Sep. 30, 2021 | |
OTHER BORROWINGS | |
OTHER BORROWINGS | (13) On September 20, 2018, the Company entered into a subordinated note purchase agreement in the principal amount of $20 million. The subordinated note initially bears a fixed interest rate of 6.02% per year through September 30, 2023, and thereafter a floating rate, reset quarterly, equal to the three-month LIBOR rate plus 310 basis points. All interest is payable quarterly and the subordinated note is scheduled to mature on September 30, 2028. The subordinated note is an unsecured subordinated obligation of the Company and may be repaid in whole or in part, without penalty, on or after September 30, 2023. The subordinated note is intended to qualify as Tier 2 capital for the Company under regulatory guidelines. The subordinated note is presented net of unamortized debt issuance costs of $135,000 and $203,000 at September 30, 2021 and 2020, respectively, in the accompanying consolidated balance sheet. The debt issuance costs are being amortized over five years, which represents the period from issuance to the first redemption date of September 30, 2023. In April of 2020, the Company began utilizing the Federal Reserve PPP Liquidity Facility (“PPPLF”). The proceeds from the PPPLF were used to fund certain PPP loans, which were pledged as collateral to secure the borrowings, and carried a fixed interest rate of 0.35%. There were no outstanding borrowings under the PPPLF at September 30, 2021. Borrowings under the PPPLF totaled $174.8 million at September 30, 2020. |
DEFERRED COMPENSATION PLANS
DEFERRED COMPENSATION PLANS | 12 Months Ended |
Sep. 30, 2021 | |
DEFERRED COMPENSATION PLANS | |
DEFERRED COMPENSATION PLANS | (14) The Company has deferred compensation agreements with former and current officers. The agreements provide for the payment of specific benefits following retirement. The balance of the accrued benefit for these agreements was $336,000 and $208,000 at September 30, 2021 and 2020, respectively. Deferred compensation expense for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Deferred compensation expense (income) $ 129 $ (4) $ 80 The Company has a directors’ deferred compensation plan whereby a director, at his or her election on an annual basis, may defer all or a portion of the director fees into an account with the Company. The Company accrues interest on the deferred obligation at an annual rate equal to the prime rate for the immediately preceding calendar quarter plus 2%, but in no event at a rate in excess of 8%. The deferral period extends until separation from service by the director. The benefits under the plan are payable in a lump sum or in monthly installments over a period of up to ten years following the separation from service; however, the agreements provide for payment of benefits in the event of disability, early retirement, termination of service or death. The balance of the accrued benefit for the director plan was $1.5 million at September 30, 2021 and 2020. Deferred directors’ fees expense for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Deferred directors’ fee expense $ 166 $ 187 $ 263 |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Sep. 30, 2021 | |
BENEFIT PLANS | |
BENEFIT PLANS | (15) Defined Contribution Plan: The Company has a qualified contributory defined contribution plan available to all eligible employees. The plan allows participating employees to make tax-deferred contributions under Internal Revenue Code Section 401(k). (15-continued) Company contributions to the plan for the years ended September 30, 2021, 2020 and 2019 were as follows: (In thousands) 2021 2020 2019 Company contributions to the plan $ 1,633 $ 1,420 $ 762 Employee Stock Ownership Plan: On October 6, 2008, the Company established a leveraged ESOP covering substantially all employees. The ESOP trust acquired 610,089 shares of Company common stock at a cost of $3.33 per share (both as adjusted for the three There was no compensation expense recognized for the years ended September 30, 2021, 2020 and 2019. The employer loan was fully repaid in December 2015 and all shares of Company stock were allocated to participant accounts as of September 30, 2016. After adjusting for the Company announced three |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Sep. 30, 2021 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | (16) The Company maintains three equity incentive plans under which stock options and restricted stock have or can be granted, the 2010 Equity Incentive Plan (“2010 Plan”) approved by the Company’s shareholders in February 2010, the 2016 Equity Incentive Plan (“2016 Plan”) approved by the Company’s shareholders in February 2016 and the 2021 Equity Incentive Plan (“2021 Plan”) approved by the Company’s shareholders in February 2021. The aggregate number of shares of the Company’s common stock available for issuance under the 2016 Plan may not exceed 264,000 shares, consisting of 198,000 stock options and 66,000 shares of restricted stock. The aggregate number of shares of the Company’s common stock available for issuance under the 2021 Plan may not exceed 356,058 shares, and no shares had been granted under the 2021 Plan as of September 30, 2021. However, in November 2021 the Company granted 137,250 stock options and 45,750 restricted shares to directors, officers and key employees, which will vest over a one-year or five-year Stock based compensation expense related to stock options and restricted stock for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Stock option expense $ 92 $ 86 $ 72 Restricted stock expense 184 193 173 (16-continued) Stock Options: Under the plans, the Company may grant both non-statutory and incentive stock options that may not have a term exceeding ten years. In the case of incentive stock options, the aggregate fair value (determined at the time the incentive stock options are granted) which are first exercisable during any calendar year shall not exceed $100,000. Exercise prices generally may not be less than the fair market value of the underlying stock at the date of the grant. The terms of the plans also include provisions whereby all unearned options and restricted shares become immediately exercisable and fully vested upon a change in control. Stock options granted generally vest ratably over five years and are exercisable in whole or in part for a period up to ten years from the date of the grant. Compensation expense is measured based on the fair market value of the options at the grant date and is recognized ratably over the period during which the shares are earned (the vesting period). The fair market value of stock options granted is estimated at the date of grant using a binomial option pricing model. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of options granted represents the period of time that options are expected to be outstanding. The risk free rate for the expected life of the options is based on the U.S. Treasury yield curve in effect at the grant date. The fair value of options granted during the years ended September 30, 2021, 2020 and 2019 was determined using the following assumptions: Expected dividend yield 1.75 % Risk-free interest rate 2.13 % Expected volatility 14.6 % Expected life of options 7.5 years Weighted average fair value at grant date $ 6.13 A summary of stock option activity as of September 30, 2021, and changes during the year then ended is presented below. Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (Years) Value Outstanding at beginning of year 205,209 $ 16.04 Granted 22,665 21.10 Exercised (6,840) 15.09 Forfeited or expired (3,960) 16.84 Outstanding at end of year 217,074 $ 16.58 6.2 $ 2,132,000 Vested and expected to vest 217,074 $ 16.58 6.2 $ 2,132,000 Exercisable at end of year 126,264 $ 14.81 5.5 $ 1,661,000 The intrinsic value of stock options exercised during the years ended September 30, 2021, 2020 and 2019 was $50,000, $1.4 million and $2.6 million, respectively. At September 30, 2021, there was $108,000 of unrecognized compensation expense related to nonvested stock options. The compensation expense is expected to be recognized over a weighted average period of 3.06 years. Cash received from the exercise of stock options was $27,000, $148,000 and $408,000 for the years ended September 30, 2021,2020 and 2019, respectively. The tax benefit from the exercise of stock options was $10,000, $134,000 and $237,000 for the years ended September 30, 2021, 2020 and 2019, respectively. (16-continued) Restricted Stock: The vesting period of restricted stock granted under the plans is generally five years beginning one year after the date of grant of the awards. Compensation expense is measured based on the fair market value of the restricted stock at the grant date and is recognized ratably over the vesting period. A summary of the Company’s nonvested restricted shares activity as of September 30, 2021 and changes during the year then ended is presented below. Weighted Number Average of Grant Date Shares Fair Value Nonvested at October 1, 2020 32,424 $ 16.01 Granted — $ — Vested (13,125) $ 14.92 Forfeited (1,500) $ 17.19 Nonvested at September 30, 2021 17,799 $ 16.72 There were 13,125, 12,258 and 10,959 restricted shares vested during the years ended September 30, 2021, 2020 and 2019, respectively. The total fair value of restricted shares that vested during the years ended September 30, 2021, 2020 and 2019 was $277,000, $271,000 and $216,000, respectively. At September 30, 2021, there was $138,000 of unrecognized compensation expense related to nonvested restricted shares. The compensation expense is expected to be recognized over a weighted average period of 2.25 years. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2021 | |
INCOME TAXES | |
INCOME TAXES | (17) The Company and its subsidiaries file consolidated income tax returns. The components of consolidated income tax expense were as follows for the years ended September 30, 2021, 2020 and 2019: (In thousands) 2021 2020 2019 Current $ 2,166 $ 8,295 $ 2,493 Valuation allowance (34) 193 166 Deferred 7,865 4,173 436 Income tax expense $ 9,997 $ 12,661 $ 3,095 The reconciliation of income tax expense with the amount which would have been provided at the federal statutory rate of 21% for the years ended September 30, 2021, 2020 and 2019 follows: (In thousands) 2021 2020 2019 Provision at federal statutory rate $ 8,308 $ 9,816 $ 4,219 State income tax-net of federal tax benefit 901 1,815 327 Tax-exempt interest income (1,045) (962) (890) Bank owned life insurance (194) (154) (111) Captive insurance net premiums (303) (295) (223) Increase (decrease) in federal deferred tax valuation allowance (20) 193 166 Nondeductible officer compensation 2,238 2,373 — Other 112 (125) (393) Income tax expense $ 9,997 $ 12,661 $ 3,095 (17-continued) Significant components of deferred tax assets and liabilities at September 30, 2021 and 2020 are as follows: (In thousands) 2021 2020 Deferred tax assets: Allowance for loan losses $ 3,460 $ 2,833 Operating lease liability 1,430 1,882 Deferred compensation plans 426 409 Equity incentive plans 45 45 Other-than-temporary impairment loss on available for sale securities 20 28 Interest on nonaccrual loans 236 191 Loss on tax credit investments 1,640 1,673 Deferred loan fees and costs, net — 166 Investment in subsidiary — 584 Mark to market adjustments 817 — Other 278 423 Gross deferred tax assets 8,352 8,234 Valuation allowance (1,648) (1,681) Net deferred tax assets 6,704 6,553 Deferred tax liabilities: Unrealized gain on securities available for sale (2,366) (2,980) Accumulated depreciation (2,014) (1,611) Operating lease right of use asset (1,403) (1,854) Installment sale (360) (378) Acquisition purchase accounting adjustments (853) (789) Mortgage servicing rights (12,336) (5,401) FHLB stock dividends (85) (88) Prepaid expenses (829) (609) Deferred loan fees and costs, net (239) — Other (96) (67) Deferred tax liabilities (20,581) (13,777) Net deferred tax liability $ (13,877) $ (7,224) Tax laws enacted in 2013 and 2014 decrease the Indiana financial institutions tax rate beginning in 2014 and ending in 2023. Deferred taxes have been adjusted to reflect the newly enacted rates and the period in which temporary differences are expected to reverse. (17-continued) In assessing the ability of the Company to realize the benefit of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, availability of operating loss carrybacks, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which deferred tax assets are deductible, management believes it is more likely than not the Company will generate sufficient taxable income to realize the benefits of these deductible differences at September 30, 2021, except for a valuation allowance of $1.6 million on the net deferred tax asset related to losses on historic tax credit investment entities totaling $7.4 million. In assessing the need for a valuation allowance for the deferred tax assets for the historic tax credit investments, the Company considered all positive and negative evidence in assessing whether the weight of available evidence supports the recognition of some or all of the deferred tax assets related to the investments. Because of the tax nature of the loss to be recognized when the investments are ultimately sold (which for tax purposes will give rise to a capital loss for the historic tax credit investments), the Company may not be able to generate capital gains in the future to be able to utilize the capital losses from the investment. Therefore, the Company’s assessment of the deferred tax asset warrants the need for a valuation allowance. At September 30, 2021 and 2020, the Company had no liability for unrecognized income tax benefits and does not anticipate any increase in the liability for unrecognized tax benefits during the next twelve months. The Company believes that its income tax positions would be sustained upon examination and does not anticipate any adjustments that would result in a material change to its financial position or results of operations. The Company files consolidated U.S. federal and Indiana state income tax returns. Returns filed in these jurisdictions for tax years ending on or after September 30, 2017 are subject to examination by the relevant taxing authorities. Each entity included in the consolidated federal and state income tax returns filed by the Company are charged or given credit for the applicable tax as though separate returns were filed. Retained earnings of the Bank at September 30, 2021 and 2020 include approximately $4.6 million for which no deferred federal income tax liability has been recognized. This amount represents an allocation of income to bad debt deductions as of September 30, 1988 for tax purposes only. Reduction of such allocated amounts for purposes other than tax bad debt losses, including redemption of bank stock, excess dividends or loss of “bank” status, would create income for tax purposes only, subject to the then-current corporate income tax rate. The unrecorded deferred income tax liability on these amounts was approximately $957,000 at September 30, 2021 and 2020. |
LEASES
LEASES | 12 Months Ended |
Sep. 30, 2021 | |
LEASES | |
LEASES | (18) A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified premises and equipment for a period of time in exchange for consideration. The Company is a lessor in certain leasing agreements, such as for office space, and is a lessee in others, such as for certain office space and equipment. The Company’s operating leases have terms that expire at different dates through August 2028, and some include options to extend On October 1, 2019, the Company adopted FASB ASC 842 and all subsequent updates that modified FASB ASC 842. For the Company, this update primarily affected the accounting treatment for operating lease agreements. With the adoption of FASB ASC 842, operating lease agreements are required to be recognized on the consolidated balance sheet as a right of use (“ROU”) asset and a corresponding lease liability. All of the Company’s leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheet. The Company’s right to use an asset over the life of a lease is recorded as an ROU asset included in other assets on the consolidated balance sheets and was $5.8 million and $7.9 million at September 30, 2021 and 2020,respectively. Certain adjustments to the ROU liability The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments. Regarding the discount rate, FASB ASC 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to October 1, 2019, the rate for the remaining lease term as of October 1, 2019 was used. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the term of the lease. Certain leases include one or more options to renew one Lease expense for the years ended September 30, 2021, 2020 and 2019 was $2.0 million, $1.9 million and $1.2 million, respectively. The components of lease expense for the years ended September 30, 2021, 2020 and 2019 were as follows: (In thousands) 2021 2020 2019 Operating lease cost $ 1,204 $ 1,294 $ 527 Short-term lease cost 836 644 679 $ 2,040 $ 1,938 $ 1,206 (18-continued) Future minimum commitments due under these lease agreements as of September 30, 2021 are as follows, including renewal options that are reasonably certain to be exercised: Years ending September 30: (In thousands) 2022 $ 668 2023 621 2024 562 2025 445 2026 245 Thereafter 5,234 Total lease payments 7,775 Less imputed interest (1,839) Total $ 5,936 The lease term and discount rate at September 30, 2021 and 2020 were as follows: 2021 2020 Weighted-average remaining lease term (years) 21.5 18.5 Weighted-average discount rate 2.53 % 2.35 % Supplemental cash flow information for the years ended September 30, 2021 and 2020 related to leases was as follows: (In thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,253 $ 1,221 ROU assets obtained in exchange for lease obligations: Operating leases 2,038 9,083 Lessor The Company leases commercial office space to tenants under noncancelable operating leases with terms of three Years ending September 30: (In thousands) 2022 $ 601 2023 557 2024 557 2025 442 2026 96 2027 and thereafter 160 Total $ 2,413 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | (19) The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount and type of collateral obtained, if deemed necessary by the Company upon extension of credit, varies and is based on management’s credit evaluation of the counterparty. Commitments under outstanding standby letters of credit totaled $8.3 million and $8.8 million at September 30, 2021 and 2020, respectively. Standby letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company’s policy for obtaining collateral, and the nature of such collateral, is essentially the same as that involved in making commitments to extend credit. The Company has not been obligated to perform on any financial guarantees and has incurred no losses on its commitments in 2021 or 2020. The following is a summary of the commitments to extend credit at September 30, 2021 and 2020. Interest rate lock commitments that meet the definition of a derivative are excluded from these totals. (In thousands) 2021 2020 Loan commitments: Fixed rate $ 49,722 $ 12,547 Adjustable rate 28,137 25,512 Guarantees of third-party revolving credit 177 182 Undisbursed portion of home equity lines of credit 35,995 33,567 Undisbursed portion of commercial and personal lines of credit 47,452 40,136 Undisbursed portion of construction loans in process 31,323 18,735 Total commitments to extend credit $ 192,806 $ 130,679 (19-continued) In connection with the sale of residential mortgage loans to third party investors, the Company makes usual and customary representations and warranties as to the propriety of its origination activities. In certain circumstances, the investors require the Company to repurchase loans sold to them under the terms of the warranties. When this happens, the loans are recorded at fair value with a corresponding charge to a valuation reserve. At September 30, 2021 and 2020, the Company had established a reserve for loan repurchases or indemnifications of $338,000 and $290,000, respectively, which is included in other liabilities in the accompanying consolidated balance sheets. Provisions for loan repurchases or indemnifications totaling $595,000 and $614,000 were made for the years ended September 30, 2021 and 2020, respectively, and are included in mortgage banking income in the accompanying consolidated statements of income. At September 30, 2021, the Company has recorded a loss for restitution to be repaid to certain borrowers who originated loans through the Company’s mortgage banking division. A settlement agreement has been reached and the total expected restitution of $450,000 has been recognized at September 30, 2021. The Bank received notice of a class action lawsuit on March 23, 2021 regarding its policy and practice of assessing customer fees related to items presented on accounts with insufficient funds (NSF items). The Company has not accrued a loss contingency for this pending litigation at September 30, 2021 because it has not determined that a probable loss will occur and cannot reasonably estimate a potential loss amount. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Sep. 30, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | (20) The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (i.e., rate lock commitment). The Company also enters into forward mortgage loan commitments to sell to various investors to protect itself against exposure to various factors and to reduce sensitivity to interest rate movements. Both the interest rate lock commitments and the related forward mortgage loan sales contracts are considered derivatives and are recorded on the balance sheet at fair value in accordance with FASB ASC 815, Derivatives and Hedging Certain financial instruments, including derivatives, may be eligible for offset in the balance sheet when the “right of setoff” exists or when the instruments are subject to an enforceable master netting agreement, which includes the right of the non-defaulting party or non-affected party to offset recognized amounts, including collateral posted with the counterparty, to determine a net receivable or net payable upon early termination of the agreement. Certain of the Company’s derivative instruments are subject to master netting agreements. However, the Company has not elected to offset such financial instruments in the consolidated balance sheets. The Company may be required to post margin collateral to derivative counterparties based on agreements with the dealers. At September 30, 2021 and 2020, the Company had cash collateral posted with certain derivative counterparties against its derivative obligations of $2.4 million and $3.0 million, respectively. Cash collateral related to derivative contracts is recorded in interest-bearing deposits with banks or other assets in the consolidated balance sheets. (20 – continued) The table below provides information on the Company’s derivative financial instruments as of September 30, 2021 and 2020. September 30, 2021: Notional Asset Liability (In thousands) Amount Derivatives Derivatives Interest rate lock commitments $ 331,178 $ 2,167 $ 600 Forward mortgage loan sale contracts 291,750 1,465 35 $ 622,928 $ 3,632 $ 635 September 30, 2020: Notional Asset Liability (In thousands) Amount Derivatives Derivatives Interest rate lock commitments $ 793,671 $ 14,937 $ — Forward mortgage loan sale contracts 605,750 226 1,827 $ 1,399,421 $ 15,163 $ 1,827 Income (loss) related to derivative financial instruments included in mortgage banking income in the accompanying consolidated statements of income for the years ended September 30, 2021, 2020 and 2019, is as follows: (In thousands) 2021 2020 2019 Interest rate lock commitments $ (13,730) $ 11,668 $ 2,889 Forward mortgage loan sale contracts 4,140 (22,412) (3,462) $ (9,230) $ (10,744) $ (573) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Sep. 30, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | (21) FASB ASC Topic 820 , Fair Value Measurements, Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted market price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. Level 2: Inputs to the valuation methodology include quoted market prices for similar assets or liabilities in active markets; quoted market prices for identical or similar assets or liabilities in markets that are not active; or inputs that are derived principally from or can be corroborated by observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and liabilities carried at fair value or at the lower of cost or fair value. (21 – continued) The table below presents the balances of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis as of September 30, 2021. Carrying Value (In thousands) Level 1 Level 2 Level 3 Total September 30, 2021: Assets Measured – Recurring Basis Securities available for sale: U.S. Treasury bills $ — $ 250 $ — $ 250 Agency mortgage-backed — 8,384 — 8,384 Agency CMO — 13,530 — 13,530 Privately-issued CMO — 803 — 803 Privately-issued ABS — 772 — 772 SBA certificates — 2,138 — 2,138 Municipal bonds — 180,804 — 180,804 Total securities available for sale $ — $ 206,681 $ — $ 206,681 Residential mortgage loans held for sale – fair value option elected $ — $ 167,813 $ — $ 167,813 Derivative assets (included in other assets) $ — $ 1,465 $ 2,167 $ 3,632 Equity securities (included in other assets) $ 112 $ — $ — $ 112 Residential mortgage servicing rights $ — $ — $ 49,579 $ 49,579 Liabilities Measured – Recurring Basis Derivative liabilities (included in other liabilities) $ — $ 35 $ 600 $ 635 Assets Measured – Nonrecurring Basis Impaired loans: Residential real estate $ — $ — $ 3,067 $ 3,067 Commercial real estate — — 1,021 1,021 SBA commercial real estate — — 9,039 9,039 Multifamily — — 482 482 Commercial business — — 1,476 1,476 SBA commercial business — — 1,278 1,278 Consumer — — 247 247 Total impaired loans $ — $ — $ 16,610 $ 16,610 Single tenant net lease loans held for sale $ — $ — $ 23,020 $ 23,020 SBA loans held for sale $ — $ 24,107 $ — $ 24,107 SBA loan servicing rights $ — $ — $ 4,447 $ 4,447 Other real estate owned, held for sale: Former bank premises $ — $ — $ 1,728 $ 1,728 Total other real estate owned $ — $ — $ 1,728 $ 1,728 (21 – continued) The table below presents the balances of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis as of September 30, 2020. Carrying Value (In thousands) Level 1 Level 2 Level 3 Total September 30, 2020: Assets Measured – Recurring Basis Securities available for sale: Agency mortgage-backed $ — $ 7,952 $ — $ 7,952 Agency CMO — 9,805 — 9,805 Privately-issued CMO — 958 — 958 Privately-issued ABS — 960 — 960 SBA certificates — 694 — 694 Municipal bonds — 181,596 — 181,596 Total securities available for sale $ — $ 201,965 $ — $ 201,965 Residential mortgage loans held for sale – fair value option elected $ — $ 208,493 $ — $ 208,493 Derivative assets (included in other assets) $ — $ 226 $ 14,937 $ 15,163 Equity securities (included in other assets) $ 66 $ — $ — $ 66 Residential mortgage servicing rights $ — $ — $ 21,703 $ 21,703 Liabilities Measured – Recurring Basis Derivative liabilities (included in other liabilities) $ — $ 1,827 $ — $ 1,827 Assets Measured – Nonrecurring Basis Impaired loans: Residential real estate $ — $ — $ 5,329 $ 5,329 Commercial real estate — — 1,134 1,134 SBA commercial real estate — — 5,561 5,561 Multifamily — — 698 698 Land and land development — — 2 2 Commercial business — — 1,670 1,670 SBA commercial business — — 648 648 Consumer — — 199 199 Total impaired loans $ — $ — $ 15,241 $ 15,241 Residential mortgage loans held for sale – fair value option not elected $ — $ 54,913 $ — $ 54,913 SBA loans held for sale $ — $ 22,119 $ — $ 22,119 SBA loan servicing rights $ — $ — $ 3,748 $ 3,748 Other real estate owned, held for sale: Former bank premises $ — $ — $ 1,728 $ 1,728 Total other real estate owned $ — $ — $ 1,728 $ 1,728 (21 – continued) Fair value is based upon quoted market prices, where available. If quoted market prices are not available, fair value is based on internally-developed models or obtained from third parties that primarily use, as inputs, observable market-based parameters or a matrix pricing model that employs the Bond Market Association’s standard calculations for cash flow and price/yield analysis and observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, or the lower of cost or fair value. These adjustments may include unobservable parameters. Any such valuation adjustments have been applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Securities Available for Sale and Equity Securities. Residential Mortgage Loans Held for Sale SBA and Single Tenant Net Lease Loans Held for Sale Derivative Financial Instruments The fair value of interest rate lock commitments is also obtained from an independent third party and is based on investor prices for the underlying loans or current secondary market prices for loans with similar characteristics, less estimated costs to originate the loans and adjusted for the anticipated funding probability (pull-through rate). The fair value of interest rate lock commitments is classified as Level 3 in the fair value hierarchy. (21 – continued) The table below presents a reconciliation of derivative assets and liabilities (interest rate lock commitments) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended September 30, 2021, 2020 and 2019: (In thousands) 2021 2020 2019 Beginning balance $ 14,937 $ 3,269 $ 380 Unrealized gains (losses) recognized in earnings, net of settlements (13,370) 11,668 2,889 Ending balance $ 1,567 $ 14,937 $ 3,269 The realized and unrealized gains (losses) recognized in earnings in the table above are included in mortgage banking income on the accompanying consolidated statements of income. Gains recognized in earnings for the years ended September 30, 2021, 2020 and 2019 attributable to Level 3 derivative assets and liabilities held at the balance sheet date were $1.6 million, $14.9 million and $3.3 million, respectively. The table below presents information about significant unobservable inputs (Level 3) used in the valuation of derivative financial instruments measured at fair value on a recurring basis as of September 30, 2021 and 2020. Significant Unobservable 2021 Range of Inputs 2020 Range of Inputs Financial Instrument Inputs (Weighted Average) (Weighted Average) Interest rate lock commitments Pull-through rate 58% - 100% (83%) 0% - 100% (80%) Direct costs to close 0.37% - 1.74% (0.86%) 0.31% - 1.01% (0.52%) Residential Mortgage Servicing Rights . The table below presents a reconciliation of MSRs measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended September 30, 2021, 2020 and 2019: (In thousands) 2021 2020 2019 Beginning balance $ 21,703 $ 934 $ — Issuances (loans sold with servicing retained) 36,679 24,058 940 Net settlements (9,555) (1,542) (6) Unrealized gains (losses) included in earnings 752 (1,747) — Ending balance $ 49,579 $ 21,703 $ 934 Changes in the fair value of MSRs are included in mortgage banking income in the accompanying consolidated statements of income. (21 – continued) The table below presents information about significant unobservable inputs (Level 3) used in the valuation of MSRs measured at fair value on a recurring basis as of September 30, 2021 and 2020. Significant 2021 2020 Unobservable Range of Inputs Range of Inputs Financial Instrument Inputs (Weighted Average) (Weighted Average) MSRs Discount rate 8.50% - 10.00% (8.51%) 9.25% Prepayment rate 6.04% - 43.27% (10.00%) 2.99% - 86.98% (18.08%) Impaired Loans Impaired loans are measured at the present value of estimated future cash flows using the loan’s effective interest rate or the fair value of the collateral if the loan is a collateral-dependent loan. At September 30, 2021 and 2020, all impaired loans were considered to be collateral-dependent for the purpose of determining fair value. Collateral may be real estate and/or business assets, including equipment, inventory and/or accounts receivable, and its fair value is generally determined based on real estate appraisals or other independent evaluations by qualified professionals. The appraisals are then discounted to reflect management’s estimate of the fair value of the collateral given the current market conditions and the condition of the collateral. At September 30, 2021, the significant unobservable inputs used in the fair value measurement of impaired loans included a discount from appraised value ranging from 0.0% to 100.0% and estimated costs to sell the collateral ranging from 0.0% to 26.0%. At September 30, 2020, the significant unobservable inputs used in the fair value measurement of impaired loans included a discount from appraised value ranging from 0.0% to 75.0% and estimated costs to sell the collateral ranging from 0.0% to 12.0%. Provisions for loan losses recognized for impaired loans for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Provision for loan losses recognized $ 381 $ 2,424 $ 860 (21 – continued) SBA Loan Servicing Rights Impairment charges to write down SBA loan servicing rights to fair value for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Charges to write down SBA loan servicing rights $ 66 $ (116) $ 113 Other Real Estate Owned Other real estate owned is reported at fair value, less estimated costs to dispose of the property. The fair values are determined by real estate appraisals which are then discounted to reflect management’s estimate of the fair value of the property given current market conditions and the condition of the collateral. At September 30, 2021 and 2020, the significant unobservable inputs used in the fair value measurement of other real estate owned included a discount from appraised value (including estimated costs to sell the property) of 30.9%. There were no charges to write down other real estate owned to fair value for the years ended September 30, 2021, 2020 and 2019. Transfers between Categories (21 – continued) Financial Instruments Recorded Using Fair Value Option. The Company has elected the fair value option for substantially all of its residential mortgage loans held for sale, including substantially all loans originated by the Company’s mortgage banking division. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loans and in accordance with the Company’s policy on loans held for investment. None of these loans were 90 days or more past due, nor were any on nonaccrual status as of September 30, 2021 and 2020. The table below presents the difference between the aggregate fair value and the aggregate remaining principal balance for residential mortgage loans held for sale for which the fair value option had been elected as of September 30, 2021 and 2020. Aggregate September 30, 2021: Aggregate Principal (In thousands) Fair Value Balance Difference Residential mortgage loans held for sale $ 167,813 $ 163,158 $ 4,655 Aggregate (September 30, 2020: Aggregate Principal In thousands) Fair Value Balance Difference Residential mortgage loans held for sale $ 208,493 $ 198,138 $ 10,355 The table below presents gains and losses and interest included in earnings related to financial assets measured at fair value under the fair value option for the years ended September 30, 2021, 2020 and 2019: (In thousands) 2021 2020 2019 Gains – included in mortgage banking income $ 2,017 $ 7,504 $ 2,492 Interest income 5,695 5,026 1,516 $ 7,712 $ 12,530 $ 4,008 (21 – continued) Fair Value of Financial Instruments The following tables summarize the carrying value and estimated fair value of financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2021 and 2020. Fair Value Measurements Carrying Using: Amount Level 1 Level 2 Level 3 (In thousands) September 30, 2021: Financial assets: Cash and due from banks $ 14,191 $ 14,191 $ — $ — Interest-bearing deposits with banks 19,237 19,237 — — Interest-bearing time deposits 2,222 — 2,222 — Securities available for sale 206,681 — 206,681 — Securities held to maturity 1,837 — 2,054 — Residential mortgage loans held for sale 167,813 — 167,813 — Single tenant net lease loans held for sale 23,020 — — 23,020 SBA loans held for sale 24,107 — 27,312 — Loans, net 1,075,936 — — 1,124,226 FRB and FHLB stock 19,258 N/A N/A N/A Accrued interest receivable 6,243 — 6,243 — SBA loan servicing rights 4,447 — — 4,646 Residential mortgage loan servicing rights 49,579 — — 49,579 Derivative assets (included in other assets) 3,632 — 1,465 2,167 Equity securities (included in other assets) 112 112 — — Financial liabilities: Deposits 1,227,580 — — 1,228,147 Borrowings from FHLB 250,000 — 251,877 — Subordinated note 19,865 — 21,083 — Accrued interest payable 258 — 258 — Advance payments by borrowers for taxes and insurance 1,188 — 1,188 — Derivative liabilities (included in other liabilities) 635 — 35 600 (21 – continued) Fair Value Measurements Carrying Using: Amount Level 1 Level 2 Level 3 (In thousands) September 30, 2020: Financial assets: Cash and due from banks $ 12,807 $ 12,807 $ — $ — Interest-bearing deposits with banks 20,919 20,919 — — Interest-bearing time deposits 2,964 — 2,964 — Securities available for sale 201,965 — 201,965 — Securities held to maturity 2,102 — 2,385 — Residential mortgage loans held for sale 263,406 — 263,519 — SBA loans held for sale 22,119 — 24,666 — Loans, net 1,090,063 — — 1,152,962 FRB and FHLB stock 17,293 N/A N/A N/A Accrued interest receivable 6,462 — 6,462 — SBA loan servicing rights 3,748 — — 3,934 Residential mortgage loan servicing rights 21,703 — — 21,703 Derivative assets (included in other assets) 15,163 — 226 14,937 Equity securities (included in other assets) 66 66 — — Financial liabilities: Deposits 1,048,076 — — 1,050,569 Borrowings from FHLB 310,858 — 310,766 — Subordinated note 19,797 — 23,788 — Federal Reserve PPPLF borrowings 174,834 — 174,808 — Accrued interest payable 683 — 683 — Advance payments by borrowers for taxes and insurance 2,615 — 2,615 — Derivative liabilities (included in other liabilities) 1,827 — 1,827 — The carrying amounts in the preceding tables are included in the consolidated balance sheets under the applicable captions. The contracted or notional amounts of financial instruments with off-balance-sheet risk are disclosed in Note 19, and the fair value of these instruments is considered immaterial. |
CAPITAL REQUIREMENTS AND RESTRI
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS | 12 Months Ended |
Sep. 30, 2021 | |
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS | |
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS | (22) The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined). The final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (“Basel III rules”) became effective for the Bank on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule through 2019. Under the Basel III rules, the Bank must hold a conservation buffer above the adequately capitalized risk-based capital ratios disclosed in the table below. The capital conservation buffer was phased in from 0.0% for 2015 to 2.5% by 2019. The capital conservation buffer was 2.50%for 2021, 2020 and 2019. The Bank met all capital adequacy requirements to which it was subject as of September 30, 2021 and 2020. As of September 30, 2021, the most recent notification from the FRB categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category. (22 – continued) The Company’s and Bank’s actual capital amounts and ratios are also presented in the table. The Company is not subject to the FRB’s consolidated capital requirements because it has less than $3 billion in total consolidated assets. However, management has elected to disclose the Company’s capital amounts and ratios in addition to the Bank’s required disclosures in the table below. No amount was deducted from capital for interest-rate risk at either date. Minimum To Be Well Capitalized Under Minimum for Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2021: Total capital (to risk-weighted assets): Consolidated $ 193,476 14.28 % $ 108,401 8.00 % N/A N/A Bank 183,885 13.60 % 108,156 8.00 % $ 135,195 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 159,310 11.76 % $ 81,301 6.00 % N/A N/A Bank 169,584 12.54 % 81,117 6.00 % $ 108,156 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 159,310 11.76 % $ 60,976 4.50 % N/A N/A Bank 169,584 12.54 % 60,838 4.50 % $ 87,877 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 159,310 9.73 % $ 65,480 4.00 % N/A N/A Bank 169,584 10.07 % 67,333 4.00 % $ 84,166 5.00 % As of September 30, 2020: Total capital (to risk-weighted assets): Consolidated $ 168,617 13.37 % $ 100,929 8.00 % N/A N/A Bank 160,452 12.75 % 100,672 8.00 % $ 125,840 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 133,520 10.58 % $ 75,697 6.00 % N/A N/A Bank 145,152 11.53 % 75,504 6.00 % $ 100,672 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 133,520 10.58 % $ 56,773 4.50 % N/A N/A Bank 145,152 11.53 % 56,428 4.50 % $ 81,796 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 133,520 8.53 % $ 62,617 4.00 % N/A N/A Bank 145,152 9.37 % 61,966 4.00 % $ 77,458 5.00 % (22 – continued) Dividend Restriction As an Indiana corporation, the Company is subject to Indiana law with respect to the payment of dividends. Under Indiana law, the Company may pay dividends so long as it is able to pay its debts as they become due in the usual course of business and its assets exceed the sum of its total liabilities, plus the amount that would be needed, if the Company were to be dissolved at the time of the dividend, to satisfy any rights that are preferential to the rights of the persons receiving the dividend. The ability of the Company to pay dividends depends primarily on the ability of the Bank to pay dividends to the Company. The payment of dividends by the Bank is subject to banking regulations and applicable Indiana state law. The amount of dividends that the Bank may pay to the Company in any calendar year without prior approval from banking regulators cannot exceed net income for that year to date plus retained net income (as defined) for the preceding two calendar years. The Bank may not declare or pay a cash dividend or repurchase any of its capital stock if the effect thereof would cause the regulatory capital of the Bank to be reduced below regulatory capital requirements imposed by banking regulators or the FDIC, or below the amount of the liquidation account established upon completion of the conversion. Liquidation Account Upon completion of its conversion from mutual to stock form on October 6, 2008, the Bank established a liquidation account in an amount equal to its retained earnings at March 31, 2008, totaling $29.3 million. The liquidation account is maintained for the benefit of depositors as of the March 31, 2007 eligibility record date (or the June 30, 2008 supplemental eligibility record date) who maintain their deposits in the Bank after conversion. In the event of complete liquidation, and only in such an event, each eligible depositor is entitled to receive a liquidation distribution from the liquidation account in the proportionate amount of the then current adjusted balance for deposits held, before any liquidation distribution may be made with respect to the Bank’s stockholders. Except for the repurchase of stock and payment of dividends by the Bank, the existence of the liquidation account does not restrict the use or application of retained earnings of the Bank. Stock Split On August 16, 2021, the Company approved and declared a three three |
SUPPLEMENTAL DISCLOSURE FOR EAR
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2021 | |
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE | |
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE | (23) Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the periods presented. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock options, restricted stock and other potentially dilutive securities outstanding. Earnings and dividends per share are restated for stock splits and dividends through the date of issuance of the financial statements. Earnings per share information is presented below for the years ended September 30, 2021, 2020 and 2019. Years Ended September 30, (In thousands, except share and per share data) 2021 2020 2019 Basic: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 29,567 $ 33,354 $ 16,177 Shares: Weighted average common shares outstanding, basic 7,107,786 7,070,040 6,947,091 Net income per common share, basic $ 4.16 $ 4.72 $ 2.33 Diluted: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 29,567 $ 33,354 $ 16,177 Shares: Weighted average common shares outstanding, basic 7,107,786 7,070,040 6,947,091 Add: Dilutive effect of outstanding options 56,176 48,540 151,869 Add: Dilutive effect of restricted stock 9,771 9,282 17,292 Weighted average common shares outstanding, as adjusted 7,173,733 7,127,862 7,116,252 Net income per common share, diluted $ 4.12 $ 4.68 $ 2.27 Nonvested restricted stock shares are not considered as outstanding for purposes of computing weighted average common shares outstanding. There were no antidilutive restricted stock awards excluded from the calculation of diluted net income per share for the years ended September 30, 2021, 2020 and 2019. Stock options for 49,974, 66,474 and 21,600 shares of common stock were excluded from the calculation of diluted net income per common share for the years ended September 30, 2021, 2020 and 2019, respectively, because their effect was antidilutive. |
PARENT COMPANY CONDENSED FINANC
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Sep. 30, 2021 | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | (24) Condensed financial information for First Savings Financial Group, Inc. (parent company only) follows: Balance Sheets As of September 30, (In thousands) 2021 2020 Assets: Cash and due from banks $ 6,870 $ 4,762 Other assets 755 988 Investment in subsidiaries 193,926 171,871 $ 201,551 $ 177,621 Liabilities and Equity: Subordinated note $ 19,865 $ 19,797 Accrued expenses 1,309 552 Stockholders’ equity 180,377 157,272 $ 201,551 $ 177,621 Statements of Income Years Ended September 30, (In thousands) 2021 2020 2019 Dividend income from subsidiaries $ 5,175 $ 1,000 $ 750 Interest expense (1,274) (1,274) (1,277) Other operating expenses (1,076) (1,002) (882) Income (loss) before income taxes and equity in undistributed net income of subsidiaries 2,825 (1,276) (1,409) Income tax benefit 504 598 747 Income (loss) before equity in undistributed net income of subsidiaries 3,329 (678) (662) Equity in undistributed net income of subsidiaries 26,238 34,032 16,839 Net income $ 29,567 $ 33,354 $ 16,177 (24 – continued) Statements of Cash Flows Years Ended September 30, (In thousands) 2021 2020 2019 Operating Activities: Net income $ 29,567 $ 33,354 $ 16,177 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed net income of subsidiaries (26,238) (34,032) (16,839) Stock compensation expense 277 279 246 Net change in other assets and liabilities 201 182 (184) Net cash provided by (used in) operating activities 3,807 (217) (600) Investing Activities: Investment in bank subsidiary — — (2,000) Net cash used in investing activities — — (2,000) Financing Activities: Exercise of stock options 27 148 408 Tax paid on stock award shares for employees (41) (53) (32) Dividends paid (1,685) (1,590) (1,472) Net cash used in financing activities (1,699) (1,495) (1,096) Net increase (decrease) in cash and due from banks 2,108 (1,712) (3,696) Cash and due from banks at beginning of year 4,762 6,474 10,170 Cash and due from banks at end of year $ 6,870 $ 4,762 $ 6,474 |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Sep. 30, 2021 | |
CONCENTRATION OF CREDIT RISK | |
CONCENTRATION OF CREDIT RISK | (25) At September 30, 2021 and 2020, the Company had a concentration of credit risk with correspondent banks in excess of the federal deposit insurance limit of $9.5 million and $7.2 million, respectively. |
SUPPLEMENTAL DISCLOSURE OF CASH
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | 12 Months Ended |
Sep. 30, 2021 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | (26) Years Ended September 30, (In thousands) 2021 2020 2019 Cash payments for: Interest $ 8,517 $ 10,817 $ 10,729 Income taxes (net of refunds received) 9,051 3,971 1,572 Non-cash activities: Transfers from loans to loans held for sale 41,703 15,916 — Transfers from loans to other real estate owned 426 — 114 Proceeds from sales of other real estate owned financed through loans — — 112 Cashless exercise of stock options 77 249 542 Transfers from premises and equipment to other real estate owned — — 1,893 |
SELECTED QUARTERLY FINANCIAL IN
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Sep. 30, 2021 | |
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | (27) First Second Third Fourth (In thousands, except per share data) Quarter Quarter Quarter Quarter September 30, 2021: Interest income $ 16,026 $ 16,840 $ 16,150 $ 16,243 Interest expense 2,287 2,060 1,921 1,819 Net interest income 13,739 14,780 14,229 14,424 Provision (credit) for loan losses 668 287 (2,730) 8 Net interest income after provision (credit) for loan losses 13,071 14,493 16,959 14,416 Noninterest income 46,183 38,973 18,785 16,495 Noninterest expenses 44,402 39,284 30,619 25,104 Income before income taxes 14,852 14,182 5,125 5,807 Income tax expense 4,527 3,695 817 958 Net income 10,325 10,487 4,308 4,849 Net income attributable to noncontrolling interest in subsidiary 402 — — — Net income attributable to First Savings Financial Group, Inc. $ 9,923 $ 10,487 $ 4,308 $ 4,849 Net income per common share, basic $ 1.40 $ 1.48 $ 0.61 $ 0.68 Net income per common share, diluted $ 1.39 $ 1.46 $ 0.60 $ 0.67 (27 – continued) First Second Third Fourth (In thousands, except per share data) Quarter Quarter Quarter Quarter September 30, 2020: Interest income $ 13,661 $ 13,554 $ 14,719 $ 15,765 Interest expense 2,875 2,783 2,543 2,337 Net interest income 10,786 10,771 12,176 13,428 Provision for loan losses 505 1,705 2,980 2,772 Net interest income after provision for loan losses 10,281 9,066 9,196 10,656 Noninterest income 18,232 11,133 46,962 57,024 Noninterest expenses 24,272 22,075 35,009 44,452 Income (loss) before income taxes 4,241 (1,876) 21,149 23,228 Income tax expense (benefit) 638 (774) 5,540 7,257 Net income (loss) 3,603 (1,102) 15,609 15,971 Net income (loss) attributable to noncontrolling interest in subsidiary 164 (475) 204 834 Net income (loss) attributable to First Savings Financial Group, Inc. $ 3,439 $ (627) $ 15,405 $ 15,137 Net income (loss) per common share, basic $ 0.49 $ (0.09) $ 2.17 $ 2.13 Net income (loss) per common share, diluted $ 0.48 $ (0.09) $ 2.17 $ 2.12 September 30, 2019: Interest income $ 11,801 $ 12,307 $ 13,058 $ 13,829 Interest expense 2,225 2,446 3,166 3,069 Net interest income 9,576 9,861 9,892 10,760 Provision for loan losses 315 340 337 471 Net interest income after provision for loan losses 9,261 9,521 9,555 10,289 Noninterest income 5,781 7,089 12,644 18,340 Noninterest expenses 11,416 12,880 16,488 21,606 Income before income taxes 3,626 3,730 5,711 7,023 Income tax expense 522 466 748 1,359 Net income 3,104 3,264 4,963 5,664 Net income attributable to noncontrolling interest in subsidiary 173 (269) 571 343 Net income attributable to First Savings Financial Group, Inc. $ 2,931 $ 3,533 $ 4,392 $ 5,321 Net income per common share, basic $ 0.43 $ 0.51 $ 0.63 $ 0.76 Net income per common share, diluted $ 0.41 $ 0.50 $ 0.62 $ 0.75 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2021 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | (28) The Company’s operations include three primary segments: core banking, SBA lending, and mortgage banking. The core banking segment originates residential, commercial and consumer loans and attracts deposits from its customer base. Net interest income from loans and investments funded by deposits and borrowings is the primary revenue for the core banking segment. The SBA lending segment originates loans guaranteed by the SBA, subsequently selling the guaranteed portion to outside investors. Net gains on sales of loans and net interest income are the primary sources of revenue for the SBA lending segment. The mortgage banking segment originates residential mortgage loans and sells them in the secondary market. Net gains on the sales of loans, income from derivative financial instruments and net interest income are the primary sources of revenue for the mortgage banking segment. The core banking segment is comprised primarily of the Bank and First Savings Investments, Inc., while the SBA lending segment’s revenues are comprised primarily of net interest income and gains on the sales of SBA loans generated by Q2. The mortgage banking segment operates as a separate division of the Bank. The following segment financial information has been derived from the internal financial statements of the Company which are used by management to monitor and manage financial performance. The accounting policies of the three segments are the same as those of the Company. The amounts reflected in the “Other” column in the tables below represent combined balances of the Company and the Captive, and are the primary differences between the sum of the segment amounts and consolidated totals, along with amounts to eliminate transactions between segments. Core SBA Mortgage Consolidated (In thousands) Banking Lending Banking Other Totals Year Ended September 30, 2021: Net interest income (loss) $ 46,122 $ 10,339 $ 1,940 $ (1,229) $ 57,172 Provision (credit) for loan losses (1,782) 15 — — (1,767) Net interest income (loss) after provision 47,904 10,324 1,940 (1,229) 58,939 Net gains on sales of loans, SBA — 8,740 — — 8,740 Mortgage banking income 4 — 104,500 — 104,504 Noninterest income 6,331 9,661 104,444 — 120,436 Noninterest expense (income) 35,636 9,374 94,768 (369) 139,409 Income (loss) before taxes 18,599 10,611 11,616 (860) 39,966 Income tax expense (benefit) 2,935 2,512 5,047 (497) 9,997 Segment profit (loss) 15,664 8,099 6,569 (363) 29,969 Noncash items: Depreciation and amortization 1,953 42 237 68 2,300 Segment assets at September 30, 2021 1,468,483 168,342 232,279 (148,598) 1,720,506 (28 – continued) Core SBA Mortgage Consolidated (In thousands) Banking Lending Banking Other Totals Year Ended September 30, 2020: Net interest income (loss) $ 39,408 $ 5,911 $ 3,046 $ (1,204) $ 47,161 Provision for loan losses 4,636 3,326 — — 7,962 Net interest income (loss) after provision 34,772 2,585 3,046 (1,204) 39,199 Net gains on sales of loans, SBA — 5,673 — — 5,673 Mortgage banking income 8 — 120,725 — 120,733 Noninterest income 5,905 6,751 120,695 — 133,351 Noninterest expense (income) 29,772 7,853 88,573 (390) 125,808 Income (loss) before taxes 10,905 1,483 35,168 (814) 46,742 Income tax expense (benefit) 2,265 189 10,793 (586) 12,661 Segment profit (loss) 8,640 1,294 24,375 (228) 34,081 Noncash items: Depreciation and amortization 1,558 51 181 68 1,858 Segment assets at September 30, 2020 1,459,467 283,994 293,973 (272,809) 1,764,625 Core SBA Mortgage Consolidated (In thousands) Banking Lending Banking Other Totals Year Ended September 30, 2019: Net interest income (loss) $ 36,524 $ 4,145 $ 636 $ (1,216) $ 40,089 Provision (credit) for loan losses (242) 1,705 — — 1,463 Net interest income (loss) after provision 36,766 2,440 636 (1,216) 38,626 Net gains on sales of loans, SBA — 4,569 — — 4,569 Mortgage banking income 33 — 33,011 — 33,044 Noninterest income 5,650 5,182 33,022 — 43,854 Noninterest expense (income) 28,852 5,953 27,760 (175) 62,390 Income (loss) before taxes 13,564 1,669 5,898 (1,041) 20,090 Income tax expense (benefit) 2,143 213 1,475 (736) 3,095 Segment profit (loss) 11,421 1,456 4,423 (305) 16,995 Noncash items: Depreciation and amortization 1,467 49 100 68 1,684 Segment assets at September 30, 2019 1,124,526 84,661 88,645 (75,253) 1,222,579 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Sep. 30, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | (29) REVENUE FROM CONTRACTS WITH CUSTOMERS Substantially all of the Company’s revenue from contracts with customers within the scope of FASB ASC 606 is included in the core banking segment and is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the years ended September 30, 2021, 2020 and 2019: Year Ended September 30, (In thousands) 2021 2020 2019 Service charges on deposit accounts $ 1,468 $ 1,581 $ 1,957 ATM and interchange fees 2,399 2,116 1,949 Investment advisory income 589 288 324 Other 103 101 137 Revenue from contracts with customers 4,559 4,086 4,367 Gain (loss) on securities — 7 (74) Gain on sale of SBA loans 8,740 5,673 4,569 Mortgage banking income 104,504 120,733 33,044 Increase in cash value of life insurance 785 732 580 Real estate lease income 592 589 594 Other 1,256 1,531 774 Other noninterest income 115,877 129,265 39,487 Total noninterest income $ 120,436 $ 133,351 $ 43,854 A description of the Company’s revenue streams accounted for under FASB ASC 606 follows: Service Charges on Deposit Accounts ATM and Interchange Fees Investment Advisory Income (29 – continued) Other Income |
MORTGAGE BANKING INCOME
MORTGAGE BANKING INCOME | 12 Months Ended |
Sep. 30, 2021 | |
MORTGAGE BANKING INCOME | |
MORTGAGE BANKING INCOME | (30) MORTGAGE BANKING INCOME The components of mortgage banking income for the years ended September 30, 2021, 2020 and 2019 were as follows: 2021 2020 2019 (In thousands) Origination and sale of mortgage loans (1) $ 83,874 $ 105,659 $ 30,503 Mortgage brokerage income 1,500 — — Net change in fair value of loans held for sale and interest rate lock commitments (18,856) 16,680 5,124 Realized and unrealized hedging gains (losses) 4,140 (22,412) (3,462) Capitalized residential mortgage loan servicing rights 36,679 24,058 940 Net change in fair value of residential mortgage loan servicing rights (8,803) (3,289) (6) Net loan servicing income 6,565 651 37 Provisions for loan repurchases and indemnifications (595) (614) (92) Total mortgage banking income $ 104,504 $ 120,733 $ 33,044 (1) Includes origination fees and realized gains and losses on the sale of mortgage loans in the secondary market. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations | Nature of Operations First Savings Financial Group, Inc. (the “Company”) is a financial holding company and the parent of First Savings Bank (the “Bank”) and First Savings Insurance Risk Management, Inc. (the “Captive”). The Bank, which is a wholly-owned Indiana-chartered commercial bank subsidiary of the Company, provides a variety of banking services to individuals and business customers through 15 locations in southern Indiana. The Bank attracts deposits primarily from the general public and uses those funds, along with other borrowings, primarily to originate residential mortgage, commercial mortgage, construction, commercial business and consumer loans, and to a lesser extent, to invest in mortgage-backed securities and other securities. The Bank has two wholly owned subsidiaries: First Savings Investments, Inc., a Nevada corporation that manages a securities portfolio and Southern Indiana Financial Corporation, which is currently inactive. On April 25, 2017, the Bank formed Q2 Business Capital, LLC (“Q2”), which is an Indiana limited liability company that specializes in the origination and servicing of U.S. Small Business Administration (“SBA”) loans. The Bank originally owned 51% of Q2’s membership interests. On December 31, 2020, the Bank completed the acquisition of the minority interests in Q2, and Q2 became a wholly-owned subsidiary of the Bank. As part of the acquisition of the minority interests, the Bank paid total consideration of $3.2 million. The acquisition was accounted for as an equity transaction, and resulted in the reclassification of the noncontrolling interests of $695,000, the recognition of net deferred tax assets of $590,000 and a reduction of additional paid-in capital of $1.9 million. The Captive, which is a wholly-owned insurance subsidiary of the Company, is a Nevada corporation that provides property and casualty insurance to the Company, the Bank and the Bank’s active subsidiaries. In addition, the Captive provides reinsurance to 10 other third-party insurance captives for which insurance may not be currently available or economically feasible in the insurance marketplace. |
Basis of Consolidation and Reclassifications | Basis of Consolidation and Reclassifications The consolidated financial statements include the accounts of the Company and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America and conform to general practices within the banking industry. Intercompany balances and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. The reclassifications had no effect on net income or stockholders’ equity. |
Statements of Cash Flows | Statements of Cash Flows For purposes of the statements of cash flows, the Company has defined cash and cash equivalents as cash on hand, amounts due from banks (including cash items in process of clearing), interest-bearing deposits with other banks having an original maturity of 90 days or less and money market funds. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate and other assets acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan losses and the valuation of other real estate owned, management obtains independent appraisals for significant properties. A substantial portion of the Company’s loan portfolio consists of single-family residential and commercial real estate loans to customers in the southern Indiana and Louisville, Kentucky metropolitan area. Accordingly, the ultimate collectability of a substantial portion of the Company’s loan portfolio and the recovery of the carrying amount of other real estate owned are susceptible to changes in local market conditions. While management uses available information to recognize losses on loans and other real estate owned, further reductions in the carrying amounts of loans and other real estate owned may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans and other real estate owned. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible the estimated losses on loans and other real estate owned may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. |
Investment Securities | Investment Securities Securities Available for Sale (1 – continued) Amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity, adjusted for anticipated prepayments. Unrealized gains and losses, net of tax, on securities available for sale are included in other comprehensive income and the accumulated unrealized holding gains and losses are reported as a separate component of equity until realized. Realized gains and losses on the sale of securities available for sale are determined using the specific identification method and are included in other noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Securities Held to Maturity Declines in the fair value of individual available for sale and held to maturity securities below their amortized cost that are other than temporary result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than amortized cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value. Equity Securities Investments in non-marketable equity securities such as FRB stock and FHLB stock are carried at cost and are classified as restricted securities. The Bank is a member of the FHLB system and is required to own FHLB stock, the amount of which depends on the level of borrowings and other factors. Both cash and stock dividends received from these investments are included in dividend income. Impairment testing on these investments is based on applicable accounting guidance and the cost basis is reduced when impairment is deemed to be other-than-temporary. |
Loans Held for Sale | Loans Held for Sale The Company has elected to record substantially all residential mortgage loans held for sale at fair value in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 825-10. Net unrealized gains and losses are included in mortgage banking income in the accompanying consolidated statements of income. Realized gains on sales of residential mortgage loans are determined using the specific identification method and are included in mortgage banking income. The Company originates loans to customers under the SBA 7(a) and other programs that generally provide for SBA guarantees of 75% to 90% of each loan. The Company intends to sell the guaranteed portion of the SBA loans. The guaranteed portion of the SBA loans was classified as loans held for sale at September 30, 2021 and 2020. At September 30, 2021 and 2020, SBA loans held for sale totaling $24.1 million and $22.1 million, respectively, were carried at the lower of aggregate cost or fair value. Realized gains and losses on sales of SBA loans held for sale are determined based on the allocation of participating interests sold and retained and are included in net gain on sales of SBA loans in the accompanying consolidated statements of income. Direct loan origination costs and fees related to SBA loans held for sale are deferred upon origination and are recognized as an adjustment to the gain or loss on the date of sale. SBA loans held for sale are sold on a servicing retained basis. During 2021 the Company transferred certain single tenant net lease loans from loans to loans held for sale as it intends to sell the loans on the secondary market. At September 30, 2021, single tenant net lease loans held for sale totaling $23.0 million were carried at the lower of aggregate cost or fair value. Realized gains and losses on sales of single tenant net lease loans held for sale are determined using the specific identification method. Management intends to sell the single tenant net lease loans held for sale on a servicing retained basis. |
Transfers of Financial Assets | Transfers of Financial Assets The Company accounts for transfers and servicing of financial assets in accordance with FASB ASC 860, Transfers and Servicing (1 – continued) Transfers of a portion of a loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, and the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. The Company sells financial assets in the normal course of business, the majority of which are related to the SBA-guaranteed portion of loans, residential mortgage loan sales through established programs, and commercial loan sales through participation agreements. In accordance with accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. When the Company sells financial assets, it may retain servicing rights and/or other interests in the financial assets. The gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the servicing right recognized, and the consideration received and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests held by the Company are carried at the lower of cost or fair value , with the exception of mortgage servicing rights related to sales of residential mortgage loans, which are carried at fair value. |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans Held for Investment Loans are stated at unpaid principal balances, less net deferred loan fees and the allowance for loan losses. Loan origination and commitment fees, as well as certain direct costs of underwriting and closing loans, are deferred and amortized as a yield adjustment to interest income over the lives of the related loans using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. Nonaccrual Loans The recognition of income on a loan is discontinued and previously accrued interest is reversed when interest or principal payments become 90 days past due unless, in the opinion of management, the outstanding interest remains collectible. Past due status is determined based on contractual terms. Generally, by applying the cash receipts method, interest income on nonaccrual loans is subsequently recognized only as received until the loan is returned to accrual status. The cash receipts method is used when the likelihood of further loss on the loan is remote. Otherwise, the Company applies the cost recovery method and applies all payments as a reduction of the unpaid principal balance until the loan qualifies for return to accrual status. Interest income on impaired loans is recognized using the cost recovery method, unless the likelihood of further loss is considered remote. A loan is restored to accrual status when all principal and interest payments are brought current and the borrower has demonstrated the ability to make future payments of principal and interest as scheduled, which generally requires that the borrower demonstrate a period of performance of at least six consecutive months. (1 – continued) Loan Charge-Offs For portfolio segments other than consumer loans, the Company’s practice is to charge-off any loan or portion of a loan when the loan is determined by management to be uncollectible due to the borrower’s failure to meet repayment terms, the borrower’s deteriorating or deteriorated financial condition, depreciation of the underlying collateral, the loan’s classification as a loss by regulatory examiners, or for other reasons. A partial charge-off is recorded on a loan when the uncollectibility of a portion of the loan has been confirmed, such as when a loan is discharged in bankruptcy, the collateral is liquidated, a loan is restructured at a reduced principal balance, or other identifiable events that lead management to determine the full principal balance of the loan will not be repaid. A specific reserve is recognized as a component of the allowance for estimated losses on loans individually evaluated for impairment. Partial charge-offs of loans are included in the Company’s historical loss experience used to estimate the general component of the allowance for loan losses as discussed below. Consumer loans not secured by real estate are typically charged off at 90 days past due, or earlier if deemed uncollectible, unless the loans are in the process of collection. Overdrafts are charged off after 45 days past due. Charge-offs are typically recorded on loans secured by real estate when the property is foreclosed upon when the carrying value of the loan exceeds the property’s fair value, less estimated costs to sell. Allowance for Loan Losses The allowance for loan losses reflects management’s judgment of probable incurred loan losses at the balance sheet date. Additions to the allowance for loan losses are made by the provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company evaluates the allowance for loan losses on a quarterly basis based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are individually evaluated for impairment. A specific reserve is established when the underlying discounted collateral value (or present value of estimated future cash flows) of the impaired loan is lower than the carrying value of that loan. The general component covers loans not considered to be impaired. Such loans are pooled by segment and losses are modeled using annualized historical loss experience adjusted for qualitative factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 60-month period with the exception of the SBA loan portfolio which uses a 12-month or 36-month lookback period. (1 – continued) The Company's historical loss experience is then adjusted for qualitative factors that are reviewed on a quarterly basis based on the risks present for each portfolio segment. Management considers changes and trends in the following qualitative loss factors: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in the volume and term of new loan originations; national and local economic trends and conditions; changes in lending policies, procedures and practices; changes in the experience and ability of lending management and other staff; changes in the quality and depth of the Company's loan review system; trends in collateral valuation in the Company’s lending area; and other factors as determined by management. Each qualitative factor is evaluated and a qualitative factor adjustment is applied to the actual historical loss factors in determining the adjusted loss factors used in management’s allowance for loan losses adequacy calculation. During the year ended September 30, 2020, the Company added a qualitative factor adjustment for economic uncertainties related to the novel coronavirus ("COVID-19"). The COVID-19 qualitative factor adjustments were adjusted throughout the years ended September 30, 2021 and 2020 based on the level of cases, vaccination status, loan performance and government guidelines. At September 30, 2021, the Company’s allowance for loan losses totaled $14.3 million, of which $13.1 million related to qualitative factor adjustments including $2.3 million related to the COVID-19 qualitative factor adjustment. At September 30, 2020, the Company's allowance for loan losses totaled $17.0 million, of which $14.8 million related to qualitative factor adjustments including $4.6 million related to the COVID-19 qualitative factor adjustment. Management exercises significant judgment in evaluating the relevant historical loss experience and the qualitative factors. Management also monitors the differences between estimated and actual incurred loan losses for loans considered impaired in order to evaluate the effectiveness of the estimation process and make any changes in the methodology as necessary. The following portfolio segments are considered in the allowance for loan loss analysis: residential real estate, commercial real estate (including single tenant net lease and loans originated through SBA programs), multi-family residential real estate, construction, land and land development, commercial business (including loans originated through SBA programs) and consumer. Residential real estate loans primarily consist of loans to individuals for the purchase or refinance of their primary residence, with a small portion of the segment secured by non-owner-occupied residential investment properties. The risks associated with residential real estate loans are closely correlated to the local housing market and general economic conditions, as repayment of the loans is primarily dependent on the borrower’s or tenant’s personal cash flow and employment status. Commercial real estate loans include the single tenant net lease loans and loans originated through SBA programs in addition to the Company’s core commercial loans, and are comprised of loans secured by various types of collateral including office buildings, warehouses, retail space and mixed use buildings located in the Company’s primary lending area and in other states. Risks related to commercial real estate lending are related to the market value of the property taken as collateral, the underlying cash flows and general economic conditions. Repayment of these loans is generally dependent on the ability of the borrower to attract tenants at lease rates that provide for adequate debt service and can be impacted by general economic conditions, which impact vacancy rates. The Company generally obtains loan guarantees from financially capable parties for commercial real estate loans. Multi-family residential real estate loans primarily consist of loans secured by apartment buildings and other multi-tenant developments generally located in the Company’s primary lending area. Repayment of these loans is primarily dependent on the borrower’s ability to attract tenants and collect rents that provide for adequate debt service. The risks associated with these loans are closely correlated to the local housing market and general economic conditions. (1 – continued) Loans and Allowance for Loan Losses - continued Construction loans consist of single-family residential properties, multi-family properties and commercial projects, and include both owner-occupied and speculative investment properties. Risks inherent in construction lending are related to the market value of the property held as collateral, the cost and timing of constructing or improving a property, the borrower’s ability to use funds generated by a project to service a loan until a project is completed, movements in interest rates and the real estate market during the construction phase, and the ability of the borrower to obtain permanent financing. Land and land development loans primarily consist of loans secured by farmland and vacant land held for long-term investment or development. The risks associated with land and land development loans are related to the market value of the property taken as collateral and the underlying cash flows for loans secured by farmland, and general economic conditions. Commercial business loans include loans originated through SBA programs and lines of credit to businesses, term loans and letters of credit secured by business assets such as equipment, accounts receivable, inventory, or other assets excluding real estate and are generally made to finance capital expenditures or fund operations. Commercial loans contain risks related to the value of the collateral securing the loan and the repayment is primarily dependent upon the financial success and viability of the borrower. As with commercial real estate loans, the Company generally obtains loan guarantees from financially capable parties for commercial business loans. In addition, in an effort to support our communities during the pandemic, the Company participated in the Paycheck Protection Program (“PPP”) and the majority of the Company’s SBA clients applied for participation in the SBA’s PPP loan program. All PPP loans are 100% guaranteed by the SBA. Consumer loans consist primarily of home equity lines of credit and other loans secured by junior liens on the borrower’s personal residence, home improvement loans, automobile and truck loans, boat loans, mobile home loans, loans secured by savings deposits and other personal loans. The risks associated with these loans are related to the local housing market and local economic conditions including the unemployment level. Other than the changes discussed above related to the COVID-19 qualitative factor, there were no significant changes to the Company’s accounting policies or methodology used to estimate the allowance for loan losses during the years ended September 30, 2021, 2020, and 2019. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. (1 – continued) Values for collateral dependent loans are generally based on appraisals obtained from independent licensed real estate appraisers, with adjustments applied for estimated costs to sell the property, estimated costs to complete unfinished or repair damaged property, and other known defects. New appraisals are generally obtained for all significant properties when a loan is identified as impaired. Generally, a property is considered significant if the value of the property is estimated to exceed $250,000. Subsequent appraisals are obtained as needed or if management believes there has been a significant change in the market value of a collateral property securing an impaired loan. In instances where it is not deemed necessary to obtain a new appraisal, management would base its impairment and allowance for loan loss analysis on the original appraisal with adjustments for current conditions based on management’s assessment of market factors and management’s inspection of the property. Troubled Debt Restructurings The modification of a loan is considered to be a troubled debt restructuring (“TDR”) if the debtor is experiencing financial difficulties and the Company grants a concession to the debtor that it would not otherwise consider. By granting the concession, the Company expects to obtain more cash or other value from the debtor, or to increase the probability of receipt, than would be expected by not granting the concession. The concession may include, but is not limited to, reduction of the stated interest rate of the loan, reduction of accrued interest, extension of the maturity date or reduction of the face amount of the debt. A concession will be granted when, as a result of the restructuring, the Company does not expect to collect all amounts due, including interest at the original stated rate. A concession may also be granted if the debtor is not able to access funds elsewhere at a market rate for debt with similar risk characteristics as the restructured debt. The Company’s determination of whether a loan modification is a TDR considers the individual facts and circumstances surrounding each modification. A TDR can involve loans remaining on nonaccrual, moving to nonaccrual or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Generally, a nonaccrual loan that is restructured in a TDR remains on nonaccrual status for a period of at least six months following the restructuring in order to ensure that the borrower performs in accordance with the restructured terms, including consistent and timely payments of at least six consecutive months according to the restructured terms. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. The Company uses the straight line method of computing depreciation at rates adequate to amortize the cost of the applicable assets over their estimated useful lives. Maintenance and repairs are expensed as incurred. The cost and related accumulated depreciation of assets sold, or otherwise disposed of, are removed from the related accounts and any gain or loss is included in earnings. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned includes formally foreclosed property, property obtained via a deed in lieu of foreclosure and former banking facilities held for sale. At the time of acquisition, foreclosed real estate is recorded at its fair value, less estimated costs to sell, which becomes the property’s new cost basis. Any write-downs based on the property’s fair value at the date of acquisition are charged to the allowance for loan losses. After acquisition or the decision to classify property as held for sale, valuations are periodically performed by management and property held for sale is carried at the lower of the new cost basis or fair value, less estimated costs to sell. Costs incurred in maintaining other real estate owned and subsequent impairment adjustments to the carrying amount of a property, if any, are included in noninterest expense. |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance The Bank has purchased life insurance policies on certain directors, officers and key employees to help offset costs associated with the Bank’s compensation and benefit programs. The Bank is the owner and is a joint or sole beneficiary of the policies. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Income from the increase in cash surrender value of the policies and income from the recognition of death benefits is reported in noninterest income. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill recognized in a business combination represents the excess of the fair value of consideration transferred over the fair value of assets acquired and liabilities assumed. Goodwill is evaluated for possible impairment at least annually or more frequently upon the occurrence of an event or change in circumstances that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to: (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. Other intangible assets consist of acquired core deposit intangibles. Core deposit intangibles are amortized over the estimated economic lives of the acquired core deposits. The carrying amount of core deposit intangibles and the remaining estimated economic life are evaluated annually or whenever events or circumstances indicate the carrying amount may not be recoverable or the remaining period of amortization requires revision. |
Derivative Financial Instruments | Derivative Financial Instruments In connection with the origination of residential mortgage loans to be sold in the secondary market, the Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (i.e., rate lock commitment). The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 15 to 60 days. The Company also enters into forward mortgage loan commitments to sell to various investors to protect itself against exposure to various factors and to reduce sensitivity to interest rate movements. Both the interest rate lock commitments and the related forward mortgage loan sales contracts are considered derivatives and are recorded on the balance sheet at fair value in accordance with FASB ASC 815, Derivatives and Hedging |
Securities Lending and Financing Arrangements | Securities Lending and Financing Arrangements Securities purchased under agreements to resell (reverse repurchase agreements) and securities sold under agreements to repurchase (repurchase agreements) are treated as collateralized lending and borrowing transactions, respectively, and are carried at the amounts at which the securities were initially acquired or sold. |
Benefit Plans | Benefit Plans The Company provides a contributory defined contribution plan available to all eligible employees. The Company also established a leveraged employee stock ownership plan (“ESOP”) on October 6, 2008 that includes substantially all employees. The Company accounts for the ESOP in accordance with FASB ASC 718-40, Employee Stock Ownership Plans |
Stock Based Compensation | Stock Based Compensation The Company has adopted the fair value based method of accounting for stock-based compensation prescribed in FASB ASC 718-20, Compensation – Stock Compensation |
Income Taxes | Income Taxes When income tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while other positions are subject to some degree of uncertainty regarding the merits of the position taken or the amount of the position that would be sustained. The Company recognizes the benefits of a tax position in the consolidated financial statements of the period during which, based on all available evidence, management believes it is more-likely-than-not (more than 50 percent probable) that the tax position would be sustained upon examination. Income tax positions that meet the more-likely-than-not threshold are measured as the largest amount of income tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with the income tax positions claimed on income tax returns that exceeds the amount measured as described above is reflected as a liability for unrecognized income tax benefits in the consolidated balance sheets, along with any associated interest and penalties that would be payable to the taxing authorities, if there were an examination. Interest and penalties associated with unrecognized income tax benefits are classified as additional income taxes in the consolidated statements of income. Income taxes are provided for the tax effects of the transactions reported in the financial statements and consist of taxes currently due plus deferred income taxes. Income tax reporting and financial statement reporting rules differ in many respects. As a result, there will often be a difference between the carrying amount of an asset or liability as presented in the accompanying consolidated balance sheets and the amount that would be recognized as the tax basis of the same asset or liability computed based on the effects of tax positions recognized, as described in the preceding paragraph. These differences are referred to as temporary differences because they are expected to reverse in future years. Deferred income tax assets are recognized for temporary differences where their future reversal will result in future tax benefits. Deferred income tax assets are also recognized for the future tax benefits expected to be realized from net operating loss or tax credit carryforwards. Deferred income tax liabilities are recognized for temporary differences where their future reversal will result in the payment of future income taxes. Deferred income tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. |
Advertising Costs | Advertising Costs Advertising costs are charged to operations when incurred. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of reported net income and other comprehensive income. Other comprehensive income, recognized as a separate component of equity, includes the change in unrealized gains and losses on securities available for sale. Amounts reclassified out of unrealized gains or losses on securities available for sale included in accumulated other comprehensive income or loss are included in the net gain (loss) on sales of available for sale securities line item in the consolidated statements of income. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following are summaries of recently issued or adopted accounting pronouncements that impact the accounting and reporting practices of the Company: (1 – continued) In June 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments – Credit Losses (Topic 326) In November 2019, the FASB issued ASU No. 2019-10 which delayed the effective date of ASU 2016-13 for smaller reporting companies (as defined by the SEC) and other non-SEC reporting entities to fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods. Early adoption is permitted as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is a smaller reporting company as defined by the SEC, and currently does not intend to early adopt CECL. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement The Company has determined that all other recently issued accounting pronouncements will not have a material impact on the Company's consolidated financial statements or do not apply to its operations. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
INVESTMENT SECURITIES | |
Schedule of Amortized Cost and Securities Available For Sale | The amortized cost of securities available for sale and held to maturity and their approximate fair values are as follows: Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gain Losses Value September 30, 2021: Securities available for sale: U.S. Treasury bills $ 250 $ — $ — $ 250 Agency mortgage-backed 8,143 293 52 8,384 Agency CMO 13,315 235 20 13,530 Privately-issued CMO 729 81 7 803 Privately-issued ABS 721 51 — 772 SBA certificates 2,157 2 21 2,138 Municipal bonds 170,102 11,055 353 180,804 Total securities available for sale $ 195,417 $ 11,717 $ 453 $ 206,681 Securities held to maturity: Agency mortgage-backed $ 64 $ 5 $ — $ 69 Municipal bonds 1,773 212 — 1,985 Total securities held to maturity $ 1,837 $ 217 $ — $ 2,054 (3 – continued) Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gain Losses Value September 30, 2020: Securities available for sale: Agency mortgage-backed $ 7,499 $ 453 $ — $ 7,952 Agency CMO 9,398 407 — 9,805 Privately-issued CMO 886 80 8 958 Privately-issued ABS 884 81 5 960 SBA certificates 639 58 3 694 Municipal bonds 168,472 13,180 56 181,596 Total securities available for sale $ 187,778 $ 14,259 $ 72 $ 201,965 Securities held to maturity: Agency mortgage-backed $ 82 $ 7 $ — $ 89 Municipal bonds 2,020 276 — 2,296 Total securities held to maturity $ 2,102 $ 283 $ — $ 2,385 |
Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity | The amortized cost and fair value of available for sale and held to maturity debt securities as of September 30, 2021 by contractual maturity are shown below. Expected maturities of mortgage and other asset-backed securities may differ from contractual maturities because the mortgages and other assets underlying the obligations may be prepaid without penalty. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Due within one year $ 9,601 $ 9,697 $ 260 $ 285 Due after one year through five years 25,282 26,429 914 1,014 Due after five years through ten years 32,028 34,095 599 686 Due after ten years 103,441 110,833 — — CMO 14,044 14,333 — — ABS 721 772 — — SBA certificates 2,157 2,138 — — Mortgage-backed securities 8,143 8,384 64 69 $ 195,417 $ 206,681 $ 1,837 $ 2,054 |
Schedule of Investment Securities With Gross Unrealized Losses | Information pertaining to securities with gross unrealized losses at September 30, 2021 and 2020, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, follows: Number of Gross Investment Fair Unrealized Positions Value Losses (Dollars in thousands) September 30, 2021: Securities available for sale: Continuous loss position less than twelve months: Federal agency mortgage-backed securities 1 $ 3,056 $ 52 Federal agency CMO 2 1,466 20 SBA certificates 1 2,013 20 Municipal bonds 18 13,904 254 Total less than twelve months 22 20,439 346 Continuous loss position more than twelve months: Privately-issued CMO 1 23 7 SBA certificates 1 88 1 Municipal bonds 1 1,902 99 Total more than twelve months 3 2,013 107 Total securities available for sale 25 $ 22,452 $ 453 September 30, 2020: Securities available for sale: Continuous loss position less than twelve months: Privately-issued ABS 1 $ 446 $ 5 Municipal bonds 2 2,444 56 Total less than twelve months 3 2,890 61 Continuous loss position more than twelve months: Privately-issued CMO 1 26 8 SBA certificates 1 188 3 Total more than twelve months 2 214 11 Total securities available for sale 5 $ 3,104 $ 72 |
Summary of Reported Gross Gains And Losses On Sales Of Available For Sale Securities | The following is a summary of the reported gross gains and losses on sales of available for sale securities and time deposits for the years ended September 30, 2021, 2020 and 2019: (In thousands) 2021 2020 2019 Gross realized gains on sales $ — $ 17 $ 68 Gross realized losses on sales — (10) (142) Net realized gain (loss) on sales of available for sale securities and time deposits $ — $ 7 $ (74) |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Loans and Allowance for Loan Losses | |
Schedule of Loans | Loans at September 30, 2021 and 2020 consisted of the following: (In thousands) 2021 2020 Real estate mortgage: 1-4 family residential $ 241,425 $ 191,781 Commercial 149,600 141,522 Single tenant net lease 403,692 334,636 SBA 62,805 55,508 Multifamily residential 40,324 42,368 Residential construction 8,330 9,361 Commercial construction 2,717 6,941 Land and land development 10,217 9,403 Commercial business 59,883 60,513 SBA commercial business (1) 80,400 206,807 Consumer 30,563 50,576 Total loans 1,089,956 1,109,416 Deferred loan origination fees and costs, net (2) 281 (2,327) Allowance for loan losses (14,301) (17,026) Loans, net $ 1,075,936 $ 1,090,063 (1) Includes $56.7 million and $180.6 million of PPP loans at September 30, 2021 and 2020, respectively. (2) Includes $757,000 and $3.2 million of net deferred loan fees related to PPP loans at September 30, 2021 and 2020, respectively. |
Summary of Activity for Related Party Loans | The following is a summary of activity for related party loans for the years ended September 30, 2021 and 2020: (In thousands) 2021 2020 Beginning balance $ 7,716 $ 9,115 New loans and advances 4,832 8,438 Repayments (2,601) (4,162) Loans sold (2,992) (4,250) Reclassifications due to officer and director changes (980) (1,425) Ending balance $ 5,975 $ 7,716 |
Schedule of Components of Recorded Investment in Loans | (4 – continued) The following table provides the components of the recorded investment in loans as of September 30, 2021: Principal Accrued Net Deferred Recorded Loan Interest Loan Origination Investment Recorded Investment in Loans: Balance Receivable Fees and Costs in Loans (In thousands) Residential real estate $ 241,425 $ 821 $ 24 $ 242,270 Commercial real estate 149,600 563 (208) 149,955 Single tenant net lease 403,692 1,369 (123) 404,938 SBA commercial real estate 62,805 475 1,106 64,386 Multifamily 40,324 76 (47) 40,353 Residential construction 8,330 14 (49) 8,295 Commercial construction 2,717 6 (28) 2,695 Land and land development 10,217 18 (6) 10,229 Commercial business 59,883 171 49 60,103 SBA commercial business 80,400 791 (420) 80,771 Consumer 30,563 94 (17) 30,640 $ 1,089,956 $ 4,398 $ 281 $ 1,094,635 Individually Collectively Recorded Evaluated for Evaluated for Investment in Recorded Investment in Loans as Evaluated for Impairment: Impairment Impairment Loans (In thousands) Residential real estate $ 3,067 $ 239,203 $ 242,270 Commercial real estate 1,021 148,934 149,955 Single tenant net lease — 404,938 404,938 SBA commercial real estate 9,153 55,233 64,386 Multifamily 482 39,871 40,353 Residential construction — 8,295 8,295 Commercial construction — 2,695 2,695 Land and land development — 10,229 10,229 Commercial business 1,476 58,627 60,103 SBA commercial business 1,296 79,475 80,771 Consumer 248 30,392 30,640 $ 16,743 $ 1,077,892 $ 1,094,635 (4 – continued) The following table provides the components of the recorded investment in loans as of September 30, 2020: Net Deferred Accrued Loan Recorded Principal Loan Interest Origination Investment Recorded Investment in Loans: Balance Receivable Fees and Costs in Loans (In thousands) Residential real estate $ 191,781 $ 644 $ (156) $ 192,269 Commercial real estate 141,522 812 (197) 142,137 Single tenant net lease 334,636 1,198 (234) 335,600 SBA commercial real estate 55,508 387 1,082 56,977 Multifamily 42,368 139 (37) 42,470 Residential construction 9,361 25 (28) 9,358 Commercial construction 6,941 24 (26) 6,939 Land and land development 9,403 20 (11) 9,412 Commercial business 60,513 186 43 60,742 SBA commercial business 206,807 975 (2,740) 205,042 Consumer 50,576 175 (23) 50,728 $ 1,109,416 $ 4,585 $ (2,327) $ 1,111,674 Individually Collectively Recorded Evaluated for Evaluated for Investment in Recorded Investment in Loans as Evaluated for Impairment: Impairment Impairment Loans (In thousands) Residential real estate $ 5,359 $ 186,910 $ 192,269 Commercial real estate 1,134 141,003 142,137 Single tenant net lease — 335,600 335,600 SBA commercial real estate 6,927 50,050 56,977 Multifamily 698 41,772 42,470 Residential construction — 9,358 9,358 Commercial construction — 6,939 6,939 Land and land development 2 9,410 9,412 Commercial business 1,670 59,072 60,742 SBA commercial business 695 204,347 205,042 Consumer 199 50,529 50,728 $ 16,684 $ 1,094,990 $ 1,111,674 |
Schedule of Allowance for Loan Losses | The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of September 30, 2021 and 2020: Individually Collectively Evaluated for Evaluated for Ending Impairment Impairment Balance (In thousands) 2021: Residential real estate $ — $ 1,438 $ 1,438 Commercial real estate — 2,806 2,806 Single tenant net lease — 2,422 2,422 SBA commercial real estate 114 3,361 3,475 Multifamily — 518 518 Residential construction — 191 191 Commercial construction — 63 63 Land and land development — 235 235 Commercial business — 1,284 1,284 SBA commercial business 18 1,328 1,346 Consumer 1 522 523 $ 133 $ 14,168 $ 14,301 2020: Residential real estate $ 30 $ 1,225 $ 1,255 Commercial real estate — 3,058 3,058 Single tenant net lease — 3,017 3,017 SBA commercial real estate 1,366 2,788 4,154 Multifamily — 772 772 Residential construction — 243 243 Commercial construction — 181 181 Land and land development — 243 243 Commercial business — 1,449 1,449 SBA commercial business 47 1,492 1,539 Consumer — 1,115 1,115 $ 1,443 $ 15,583 $ 17,026 (4 – continued) The following table presents the activity in the allowance for loan losses by portfolio segment for the years ended September 30, 2021 and 2020: Beginning Provisions Ending Balance (Credits) Charge-Offs Recoveries Balance (In thousands) 2021: Residential real estate $ 1,255 $ 170 $ (11) $ 24 $ 1,438 Commercial real estate 3,058 (252) — — 2,806 Single tenant net lease 3,017 (595) — — 2,422 SBA commercial real estate 4,154 234 (936) 23 3,475 Multifamily 772 (254) — — 518 Residential construction 243 (52) — — 191 Commercial construction 181 (118) — — 63 Land and land development 243 (8) — — 235 Commercial business 1,449 (170) — 5 1,284 SBA commercial business 1,539 (211) (21) 39 1,346 Consumer 1,115 (511) (156) 75 523 $ 17,026 $ (1,767) $ (1,124) $ 166 $ 14,301 2020: Residential real estate $ 317 $ 945 $ (36) $ 29 $ 1,255 Commercial real estate 2,540 614 (102) 6 3,058 Single tenant net lease 1,675 1,342 — — 3,017 SBA commercial real estate 2,293 2,175 (360) 46 4,154 Multifamily 478 294 — — 772 Residential construction 248 (5) — — 243 Commercial construction 67 114 — — 181 Land and land development 209 28 — 6 243 Commercial business 889 567 (38) 31 1,449 SBA commercial business 750 1,109 (396) 76 1,539 Consumer 574 779 (238) — 1,115 $ 10,040 $ 7,962 $ (1,170) $ 194 $ 17,026 (4 – continued) The following table presents the activity in the allowance for loan losses by portfolio segment for the year ended September 30, 2019: Beginning Provisions Balance (Credits) Charge-Offs Recoveries Ending Balance (In thousands) 2019: Residential real estate $ 278 $ 30 $ (21) $ 30 $ 317 Commercial real estate 2,493 45 — 2 2,540 Single tenant net lease 2,843 (1,168) — — 1,675 SBA commercial real estate 1,581 1,286 (574) — 2,293 Multifamily 195 283 — — 478 Residential construction 388 (140) — — 248 Commercial construction 96 (29) — — 67 Land and land development 210 (1) — — 209 Commercial business 647 237 (8) 13 889 SBA commercial business 394 427 (71) — 750 Consumer 198 493 (174) 57 574 $ 9,323 $ 1,463 $ (848) $ 102 $ 10,040 |
Schedule of Impaired Loans Individually Evaluated for Impairment | (4 – continued) The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2021. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended September 30, 2021. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 3,002 $ 3,551 $ — $ 4,383 $ 68 Commercial real estate 1,021 1,092 — 1,148 29 Single tenant net lease — — — — — SBA commercial real estate 8,184 8,873 — 4,738 — Multifamily 482 539 — 638 — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — 1 — Commercial business 1,476 1,559 — 1,664 3 SBA commercial business 1,278 1,534 — 820 — Consumer 103 97 — 90 2 $ 15,546 $ 17,245 $ — $ 13,482 $ 102 Loans with an allowance recorded: Residential real estate $ 65 $ 65 $ — $ 108 $ — Commercial real estate — — — — — Single tenant net lease — — — — — SBA commercial real estate 969 1,394 114 3,389 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business — — — 1 — SBA commercial business 18 21 18 248 — Consumer 145 144 1 169 — $ 1,197 $ 1,624 $ 133 $ 3,915 $ — Total: Residential real estate $ 3,067 $ 3,616 $ — $ 4,491 $ 68 Commercial real estate 1,021 1,092 — 1,148 29 Single tenant net lease — — — — — SBA commercial real estate 9,153 10,267 114 8,127 — Multifamily 482 539 — 638 — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — 1 — Commercial business 1,476 1,559 — 1,665 3 SBA commercial business 1,296 1,555 18 1,068 — Consumer 248 241 1 259 2 $ 16,743 $ 18,869 $ 133 $ 17,397 $ 102 (4 – continued) The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2020. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended September 30, 2020. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 5,185 $ 5,697 $ — $ 5,411 $ 127 Commercial real estate 1,134 1,185 — 3,914 167 Single tenant net lease — — — — — SBA commercial real estate 1,245 1,178 — 586 — Multifamily 698 700 — 421 — Residential construction — — — — — Commercial construction — — — — — Land and land development 2 1 — 1 — Commercial business 1,670 1,675 — 745 1 SBA commercial business 322 416 — 250 — Consumer 61 63 — 72 3 $ 10,317 $ 10,915 $ — $ 11,400 $ 298 Loans with an allowance recorded: Residential real estate $ 174 $ 175 $ 30 $ 59 $ — Commercial real estate — — — 20 — Single tenant net lease — — — — — SBA commercial real estate 5,682 6,086 1,366 5,048 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business — — — 328 — SBA commercial business 373 399 47 143 — Consumer 138 138 — 154 — $ 6,367 $ 6,798 $ 1,443 $ 5,752 $ — Total: Residential real estate $ 5,359 $ 5,872 $ 30 $ 5,470 $ 127 Commercial real estate 1,134 1,185 — 3,934 167 Single tenant net lease — — — — — SBA commercial real estate 6,927 7,264 1,366 5,634 — Multifamily 698 700 — 421 — Residential construction — — — — — Commercial construction — — — — — Land and land development 2 1 — 1 — Commercial business 1,670 1,675 — 1,073 1 SBA commercial business 695 815 47 393 — Consumer 199 201 — 226 3 $ 16,684 $ 17,713 $ 1,443 $ 17,152 $ 298 (4 – continued) The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2019. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended September 30, 2019. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 4,438 $ 4,967 $ — $ 5,037 $ 115 Commercial real estate 5,282 5,264 — 6,225 305 Single tenant net lease — — — — — SBA commercial real estate 119 144 — 112 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — 6 — Commercial business 105 106 — 183 7 SBA commercial business — — — 32 — Consumer 78 81 — 107 4 $ 10,022 $ 10,562 $ — $ 11,702 $ 431 Loans with an allowance recorded: Residential real estate $ 10 $ 7 $ 10 $ 122 $ — Commercial real estate — — — 10 — Single tenant net lease — — — — — SBA commercial real estate 2,246 2,637 512 2,116 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business — — — 10 — SBA commercial business — — — 18 — Consumer 156 155 23 157 — $ 2,412 $ 2,799 $ 545 $ 2,433 $ — Total: Residential real estate $ 4,448 $ 4,974 $ 10 $ 5,159 $ 115 Commercial real estate 5,282 5,264 — 6,235 305 Single tenant net lease — — — — — SBA commercial real estate 2,365 2,781 512 2,228 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — 6 — Commercial business 105 106 — 193 7 SBA commercial business — — — 50 — Consumer 234 236 23 264 4 $ 12,434 $ 13,361 $ 545 $ 14,135 $ 431 |
Schedule of Nonperforming Loans | (4 – continued) Nonperforming loans consist of nonaccrual loans and loans over 90 days past due and still accruing interest. The following table presents the recorded investment in nonperforming loans at September 30, 2021 and 2020: At September 30, 2021 At September 30, 2020 Loans 90+ Loans 90+ Days Total Days Total Nonaccrual Past Due Nonperforming Nonaccrual Past Due Nonperforming Loans Still Accruing Loans Loans Still Accruing Loans (In thousands) Residential real estate $ 1,894 $ — $ 1,894 $ 2,797 $ — $ 2,797 Commercial real estate 599 — 599 685 — 685 Single tenant net lease — — — — — — SBA commercial real estate 9,153 472 9,625 6,927 — 6,927 Multifamily 482 — 482 698 — 698 Residential construction — — — — — — Commercial construction — — — — — — Land and land development — — — 2 — 2 Commercial business 1,370 — 1,370 1,668 — 1,668 SBA commercial business 1,296 — 1,296 695 — 695 Consumer 206 — 206 143 — 143 Total $ 15,000 $ 472 $ 15,472 $ 13,615 $ — $ 13,615 |
Schedule of Aging of Recorded Investment in Past Due Loans | The following table presents the aging of the recorded investment in past due loans at September 30, 2021: 30-59 Days 60-89 Days 90+ Days Total Total Past Due Past Due Past Due Past Due Current Loans (In thousands) Residential real estate $ 818 $ 352 $ 347 $ 1,517 $ 240,753 $ 242,270 Commercial real estate — — 599 599 149,356 149,955 Single tenant net lease — — — — 404,938 404,938 SBA commercial real estate — 208 4,990 5,198 59,188 64,386 Multifamily — — — — 40,353 40,353 Residential construction — — — — 8,295 8,295 Commercial construction — — — — 2,695 2,695 Land and land development — — — — 10,229 10,229 Commercial business — — 3 3 60,100 60,103 SBA commercial business 18 104 848 970 79,801 80,771 Consumer 33 20 70 123 30,517 30,640 Total $ 869 $ 684 $ 6,857 $ 8,410 $ 1,086,225 $ 1,094,635 (4 – continued) The following table presents the aging of the recorded investment in past due loans at September 30, 2020: 30-59 Days 60-89 Days 90+ Days Total Total Past Due Past Due Past Due Past Due Current Loans (In thousands) Residential real estate $ 1,693 $ 480 $ 1,631 $ 3,804 $ 188,465 $ 192,269 Commercial real estate 109 — 685 794 141,343 142,137 Single tenant net lease — — — — 335,600 335,600 SBA commercial real estate — — 1,874 1,874 55,103 56,977 Multifamily — — — — 42,470 42,470 Residential construction — — — — 9,358 9,358 Commercial construction — — — — 6,939 6,939 Land and land development — — 2 2 9,410 9,412 Commercial business 63 — — 63 60,679 60,742 SBA commercial business 373 — 322 695 204,347 205,042 Consumer 233 59 4 296 50,432 50,728 Total $ 2,471 $ 539 $ 4,518 $ 7,528 $ 1,104,146 $ 1,111,674 |
Schedule of Investment in Loans by Risk Category | Special September 30, 2021: Pass Mention Substandard Doubtful Loss Total (In thousands) Residential real estate $ 240,078 $ — $ 2,018 $ 174 $ — $ 242,270 Commercial real estate 143,031 4,059 2,865 — — 149,955 Single tenant net lease 404,938 — — — — 404,938 SBA commercial real estate 45,465 5,343 10,339 3,239 — 64,386 Multifamily 39,871 — 482 — — 40,353 Residential construction 8,295 — — — — 8,295 Commercial construction 2,695 — — — — 2,695 Land and land development 10,229 — — — — 10,229 Commercial business 58,583 — 1,520 — — 60,103 SBA commercial business 70,019 6,914 3,808 30 — 80,771 Consumer 30,570 — 70 — — 30,640 Total $ 1,053,774 $ 16,316 $ 21,102 $ 3,443 $ — $ 1,094,635 The following table presents the recorded investment in loans by risk category as of September 30, 2020: Special September 30, 2020: Pass Mention Substandard Doubtful Loss Total (In thousands) Residential real estate $ 188,707 $ — $ 3,435 $ 127 $ — $ 192,269 Commercial real estate 133,685 4,112 4,340 — — 142,137 Single tenant net lease 335,600 — — — — 335,600 SBA commercial real estate 38,124 6,518 12,335 — — 56,977 Multifamily 41,772 — 698 — — 42,470 Residential construction 9,358 — — — — 9,358 Commercial construction 6,939 — — — — 6,939 Land and land development 9,410 — 2 — — 9,412 Commercial business 58,707 235 1,800 — — 60,742 SBA commercial business 200,578 294 4,170 — — 205,042 Consumer 50,701 — 27 — — 50,728 Total $ 1,073,581 $ 11,159 $ 26,807 $ 127 $ — $ 1,111,674 |
Schedule of Investment in Troubled Debt Restructurings by Class of Loan and Accrual Status | The following table summarizes TDRs by accrual status at September 30, 2021 and 2020. There was no specific reserve included in the allowance for loan losses related to TDRs at September 30, 2021. There was $538,000 of specific reserve included in the allowance for loan losses related to TDRs at September 30, 2020. Accruing Nonaccrual Total (In thousands) September 30, 2021: Residential real estate $ 1,173 $ — $ 1,173 Commercial real estate 422 465 887 SBA commercial real estate — 3,240 3,240 Multifamily — 482 482 Commercial business 106 1,367 1,473 Consumer 42 — 42 Total $ 1,743 $ 5,554 $ 7,297 September 30, 2020: Residential real estate $ 2,562 $ 116 $ 2,678 Commercial real estate 449 512 961 SBA commercial real estate — 3,800 3,800 Multifamily — 698 698 Commercial business 2 1,668 1,670 Consumer 56 — 56 Total $ 3,069 $ 6,794 $ 9,863 |
Schedule of Troubled Debt Restructurings | (4 – continued) There were no TDRs that were restructured during the year ended September 30, 2019. The following table summarizes information in regard to TDRs that were restructured during the years ended September 30, 2021 and 2020. Pre- Post- Modification Modification Number of Principal Principal Loans Balance Balance (Dollars in thousands) September 30, 2021: Commercial business 1 $ 126 $ 126 Total 1 $ 126 $ 126 September 30, 2020: Residential real estate 1 $ 1,099 $ 1,100 SBA commercial real estate 1 3,832 3,832 Multifamily 2 700 700 Commercial business 9 1,737 1,737 Total 13 $ 7,368 $ 7,369 |
Schedule Of Loan Servicing Fees [Table Text Block] | (In thousands) 2021 2020 2019 Late fees and ancillary fees earned $ 88 $ 54 $ 41 Net servicing income 2,171 1,806 1,245 SBA net servicing fees $ 2,259 $ 1,860 $ 1,286 |
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets | An analysis of the valuation allowance related to SBA loan servicing rights for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Balance as of October 1 $ 32 $ 148 $ 177 Additions (reductions) charged to earnings 66 (116) 113 Write-downs charged against allowance (92) — (142) Balance as of September 30 $ 6 $ 32 $ 148 |
SBA Loan Servicing Rights [Member] | |
Loans and Allowance for Loan Losses | |
Schedule of Loan Servicing Rights | An analysis of SBA loan servicing rights for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Balance as of October 1 $ 3,748 $ 3,030 $ 2,405 Servicing rights capitalized 1,980 1,450 1,334 Amortization (1,215) (848) (596) Direct write-offs (92) — (142) Change in valuation allowance 26 116 29 Balance as of September 30 $ 4,447 $ 3,748 $ 3,030 |
Schedule of Key Assumptions Used to Estimate The Fair Value | Range of Assumption (Weighted Average) Assumption 2021 2020 Discount rate 4.57% to 22.34% (9.97%) 3.58% to 19.86% (8.36%) Prepayment rate 8.30% to 24.51% (15.98%) 8.69% to 26.68% (17.46%) |
Mortgage Servicing Rights [Member] | |
Loans and Allowance for Loan Losses | |
Schedule of Loan Servicing Rights | Changes in the carrying value of MSRs accounted for at fair value for the years ended September 30, 2021, 2020 and 2019 were as follows: (In thousands) 2021 2020 2019 Fair value as of October 1 $ 21,703 $ 934 $ — Servicing rights capitalized 36,679 24,058 940 Changes in fair value related to: Loan repayments (9,555) (1,542) (6) Changes in valuation model inputs or assumptions 752 (1,747) — Fair value as of September 30 $ 49,579 $ 21,703 $ 934 |
Schedule of Key Assumptions Used to Estimate The Fair Value | Assumption Range of Assumption (Weighted Average) 2021 2020 Discount rate 8.50% to 10.00% (8.51%) 9.25% Prepayment rate 6.04% to 43.27% (10.00%) 2.99% to 86.98% (18.08%) |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | Premises and equipment consisted of the following at September 30, 2021 and 2020: (In thousands) 2021 2020 Land and land improvements $ 4,561 $ 4,071 Office buildings 23,826 20,062 Leasehold improvements 66 66 Furniture, fixtures and equipment 9,206 8,036 Construction in progress 400 1,057 38,059 33,292 Less: accumulated depreciation (10,390) (8,880) Totals $ 27,669 $ 24,412 Depreciation expense recognized for premises and equipment for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Depreciation expense $ 2,023 $ 1,576 $ 1,305 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
REAL ESTATE DEVELOPMENT AND CONSTRUCTION | |
Other Real Estate, Roll Forward | Other real estate owned asset activity was as follows for the years ended September 30, 2021, 2020 and 2019: (In thousands) 2021 2020 2019 Balance as of October 1 $ 1,728 $ 1,893 $ 103 Transfers from loans to other real estate owned 426 — 114 Transfers from premises and equipment to REO — — 1,893 Sales (426) (165) (217) Balance as of September 30 $ 1,728 $ 1,728 $ 1,893 |
Schedule Of Gain Loss On Other Real Estate Owned | Net (gain) loss on other real estate owned for the years ended September 30, 2021, 2020 and 2019 was as follows: (In thousands) 2021 2020 2019 Net gain on sales $ (74) $ (16) $ (78) Operating expenses, net of rental income 10 15 21 $ (64) $ (1) $ (57) |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
GOODWILL AND OTHER INTANGIBLES | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended September 30, 2021, 2020 and 2019 are summarized as follows: (In thousands) 2021 2020 2019 Beginning balance $ 9,848 $ 9,848 $ 9,848 Acquisition of Dearmin/FNBO — — — Ending balance $ 9,848 $ 9,848 $ 9,848 |
Summary Of Other Intangible Assets | The following is a summary of other intangible assets subject to amortization: (In thousands) 2021 2020 Core deposit intangible acquired in Community First acquisition $ 2,741 $ 2,741 Core deposit intangible acquired in First Federal branch acquisition 566 566 Core deposit intangible acquired in Dearmin/FNBO acquisition 1,487 1,487 Less accumulated amortization (3,806) (3,592) Ending balance $ 988 $ 1,202 |
Schedule Of Intangible Assets Amortization Expenses | Amortization expense on intangibles for the years ended September 30, 2021, 2020 and 2019 is summarized as follows: (In thousands) 2021 2020 2019 Amortization expense $ 214 $ 214 $ 312 |
Estimated Amortization Expense For The Core Deposit Intangibles | Estimated amortization expense for the core deposit intangibles for each of the ensuing five years and in the aggregate is as follows: Years ending September 30: (In thousands) 2022 $ 214 2023 214 2024 163 2025 163 2026 163 2027 and thereafter 71 Total $ 988 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
DEPOSITS | |
Schedule of deposits | Deposits at September 30, 2021 and 2020 consisted of the following: (In thousands) 2021 2020 Noninterest-bearing demand deposits $ 291,039 $ 242,673 NOW accounts 315,169 218,581 Money market accounts 222,972 143,867 Savings accounts 162,033 142,609 Retail time deposits 136,309 168,276 Brokered time deposits 70,058 54,688 Reciprocal time deposits 30,000 77,382 Total $ 1,227,580 $ 1,048,076 |
Schedule Of Maturities Of Certificates Of Deposit | At September 30, 2021, scheduled maturities of time deposits were as follows: Years ending September 30: (In thousands) 2022 $ 189,007 2023 16,448 2024 11,740 2025 7,213 2026 11,959 Total $ 236,367 |
REPURCHASE AGREEMENTS (Tables)
REPURCHASE AGREEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Retail Repurchase Agreements [Member] | |
Borrowings Under Repurchase Agreements | Information concerning borrowings under retail repurchase agreements as of and for the years ended September 30, 2021,2020 and 2019 is summarized as follows: (Dollars in thousands) 2021 2020 2019 Weighted average interest rate during the year — % — % 0.25 % Average balance during the year — — $ 1,075 Maximum month-end balance during the year — — 1,354 |
BORROWINGS FROM FEDERAL HOME _2
BORROWINGS FROM FEDERAL HOME LOAN BANK (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
BORROWINGS FROM FEDERAL HOME LOAN BANK | |
Borrowings from the FHLB | At September 30, 2021 and 2020 borrowings from the FHLB were as follows: 2021 2020 Weighted Weighted Average Average (Dollars in thousands) Rate Amount Rate Amount Advances maturing in: 2021 — % $ — 1.26 % $ 40,000 2022 2.01 10,000 2.01 10,000 2023 — — — — 2024 2.02 50,000 2.02 50,000 2025 1.51 10,000 1.51 10,000 2026 and beyond 0.81 180,000 0.81 180,000 Total advances 250,000 290,000 Line of credit balance 0.43 — 0.50 20,858 Total borrowings from FHLB $ 250,000 $ 310,858 |
DEFERRED COMPENSATION PLANS (Ta
DEFERRED COMPENSATION PLANS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Officer | |
Schedule of Deferred Directors Fees Expense | Deferred compensation expense for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Deferred compensation expense (income) $ 129 $ (4) $ 80 |
Director | |
Schedule of Deferred Directors Fees Expense | Deferred directors’ fees expense for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Deferred directors’ fee expense $ 166 $ 187 $ 263 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
BENEFIT PLANS | |
Schedule of Defined Benefit Plans Disclosures | Company contributions to the plan for the years ended September 30, 2021, 2020 and 2019 were as follows: (In thousands) 2021 2020 2019 Company contributions to the plan $ 1,633 $ 1,420 $ 762 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
STOCK-BASED COMPENSATION PLANS | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Stock based compensation expense related to stock options and restricted stock for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Stock option expense $ 92 $ 86 $ 72 Restricted stock expense 184 193 173 |
Schedule of fair value of options granted | The fair value of options granted during the years ended September 30, 2021, 2020 and 2019 was determined using the following assumptions: Expected dividend yield 1.75 % Risk-free interest rate 2.13 % Expected volatility 14.6 % Expected life of options 7.5 years Weighted average fair value at grant date $ 6.13 |
Schedule of stock option activity | A summary of stock option activity as of September 30, 2021, and changes during the year then ended is presented below. Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (Years) Value Outstanding at beginning of year 205,209 $ 16.04 Granted 22,665 21.10 Exercised (6,840) 15.09 Forfeited or expired (3,960) 16.84 Outstanding at end of year 217,074 $ 16.58 6.2 $ 2,132,000 Vested and expected to vest 217,074 $ 16.58 6.2 $ 2,132,000 Exercisable at end of year 126,264 $ 14.81 5.5 $ 1,661,000 |
Schedule of nonvested restricted shares activity | A summary of the Company’s nonvested restricted shares activity as of September 30, 2021 and changes during the year then ended is presented below. Weighted Number Average of Grant Date Shares Fair Value Nonvested at October 1, 2020 32,424 $ 16.01 Granted — $ — Vested (13,125) $ 14.92 Forfeited (1,500) $ 17.19 Nonvested at September 30, 2021 17,799 $ 16.72 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
INCOME TAXES | |
Schedule of components of income tax expense | (In thousands) 2021 2020 2019 Current $ 2,166 $ 8,295 $ 2,493 Valuation allowance (34) 193 166 Deferred 7,865 4,173 436 Income tax expense $ 9,997 $ 12,661 $ 3,095 |
Schedule of reconciliation of income tax expense | The reconciliation of income tax expense with the amount which would have been provided at the federal statutory rate of 21% for the years ended September 30, 2021, 2020 and 2019 follows: (In thousands) 2021 2020 2019 Provision at federal statutory rate $ 8,308 $ 9,816 $ 4,219 State income tax-net of federal tax benefit 901 1,815 327 Tax-exempt interest income (1,045) (962) (890) Bank owned life insurance (194) (154) (111) Captive insurance net premiums (303) (295) (223) Increase (decrease) in federal deferred tax valuation allowance (20) 193 166 Nondeductible officer compensation 2,238 2,373 — Other 112 (125) (393) Income tax expense $ 9,997 $ 12,661 $ 3,095 |
Schedule of deferred tax assets and liabilities | Significant components of deferred tax assets and liabilities at September 30, 2021 and 2020 are as follows: (In thousands) 2021 2020 Deferred tax assets: Allowance for loan losses $ 3,460 $ 2,833 Operating lease liability 1,430 1,882 Deferred compensation plans 426 409 Equity incentive plans 45 45 Other-than-temporary impairment loss on available for sale securities 20 28 Interest on nonaccrual loans 236 191 Loss on tax credit investments 1,640 1,673 Deferred loan fees and costs, net — 166 Investment in subsidiary — 584 Mark to market adjustments 817 — Other 278 423 Gross deferred tax assets 8,352 8,234 Valuation allowance (1,648) (1,681) Net deferred tax assets 6,704 6,553 Deferred tax liabilities: Unrealized gain on securities available for sale (2,366) (2,980) Accumulated depreciation (2,014) (1,611) Operating lease right of use asset (1,403) (1,854) Installment sale (360) (378) Acquisition purchase accounting adjustments (853) (789) Mortgage servicing rights (12,336) (5,401) FHLB stock dividends (85) (88) Prepaid expenses (829) (609) Deferred loan fees and costs, net (239) — Other (96) (67) Deferred tax liabilities (20,581) (13,777) Net deferred tax liability $ (13,877) $ (7,224) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
LEASES | |
Schedule of components of lease | (In thousands) 2021 2020 2019 Operating lease cost $ 1,204 $ 1,294 $ 527 Short-term lease cost 836 644 679 $ 2,040 $ 1,938 $ 1,206 |
Schedule of future minimum commitments due under the lease agreements | Future minimum commitments due under these lease agreements as of September 30, 2021 are as follows, including renewal options that are reasonably certain to be exercised: Years ending September 30: (In thousands) 2022 $ 668 2023 621 2024 562 2025 445 2026 245 Thereafter 5,234 Total lease payments 7,775 Less imputed interest (1,839) Total $ 5,936 |
Schedule of lease term and discount rate | The lease term and discount rate at September 30, 2021 and 2020 were as follows: 2021 2020 Weighted-average remaining lease term (years) 21.5 18.5 Weighted-average discount rate 2.53 % 2.35 % |
Schedule of supplemental cash flow information related to leases | Supplemental cash flow information for the years ended September 30, 2021 and 2020 related to leases was as follows: (In thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,253 $ 1,221 ROU assets obtained in exchange for lease obligations: Operating leases 2,038 9,083 |
Schedule of lessor future minimum lease payments | Years ending September 30: (In thousands) 2022 $ 601 2023 557 2024 557 2025 442 2026 96 2027 and thereafter 160 Total $ 2,413 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Commitments to Extend Credit [Member] | |
Schedule of Fair Value, Off-balance Sheet Risks | The following is a summary of the commitments to extend credit at September 30, 2021 and 2020. Interest rate lock commitments that meet the definition of a derivative are excluded from these totals. (In thousands) 2021 2020 Loan commitments: Fixed rate $ 49,722 $ 12,547 Adjustable rate 28,137 25,512 Guarantees of third-party revolving credit 177 182 Undisbursed portion of home equity lines of credit 35,995 33,567 Undisbursed portion of commercial and personal lines of credit 47,452 40,136 Undisbursed portion of construction loans in process 31,323 18,735 Total commitments to extend credit $ 192,806 $ 130,679 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of derivative financial instruments | The table below provides information on the Company’s derivative financial instruments as of September 30, 2021 and 2020. September 30, 2021: Notional Asset Liability (In thousands) Amount Derivatives Derivatives Interest rate lock commitments $ 331,178 $ 2,167 $ 600 Forward mortgage loan sale contracts 291,750 1,465 35 $ 622,928 $ 3,632 $ 635 September 30, 2020: Notional Asset Liability (In thousands) Amount Derivatives Derivatives Interest rate lock commitments $ 793,671 $ 14,937 $ — Forward mortgage loan sale contracts 605,750 226 1,827 $ 1,399,421 $ 15,163 $ 1,827 |
Schedule of Income (loss) related to derivative financial instruments | Income (loss) related to derivative financial instruments included in mortgage banking income in the accompanying consolidated statements of income for the years ended September 30, 2021, 2020 and 2019, is as follows: (In thousands) 2021 2020 2019 Interest rate lock commitments $ (13,730) $ 11,668 $ 2,889 Forward mortgage loan sale contracts 4,140 (22,412) (3,462) $ (9,230) $ (10,744) $ (573) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis | Carrying Value (In thousands) Level 1 Level 2 Level 3 Total September 30, 2021: Assets Measured – Recurring Basis Securities available for sale: U.S. Treasury bills $ — $ 250 $ — $ 250 Agency mortgage-backed — 8,384 — 8,384 Agency CMO — 13,530 — 13,530 Privately-issued CMO — 803 — 803 Privately-issued ABS — 772 — 772 SBA certificates — 2,138 — 2,138 Municipal bonds — 180,804 — 180,804 Total securities available for sale $ — $ 206,681 $ — $ 206,681 Residential mortgage loans held for sale – fair value option elected $ — $ 167,813 $ — $ 167,813 Derivative assets (included in other assets) $ — $ 1,465 $ 2,167 $ 3,632 Equity securities (included in other assets) $ 112 $ — $ — $ 112 Residential mortgage servicing rights $ — $ — $ 49,579 $ 49,579 Liabilities Measured – Recurring Basis Derivative liabilities (included in other liabilities) $ — $ 35 $ 600 $ 635 Assets Measured – Nonrecurring Basis Impaired loans: Residential real estate $ — $ — $ 3,067 $ 3,067 Commercial real estate — — 1,021 1,021 SBA commercial real estate — — 9,039 9,039 Multifamily — — 482 482 Commercial business — — 1,476 1,476 SBA commercial business — — 1,278 1,278 Consumer — — 247 247 Total impaired loans $ — $ — $ 16,610 $ 16,610 Single tenant net lease loans held for sale $ — $ — $ 23,020 $ 23,020 SBA loans held for sale $ — $ 24,107 $ — $ 24,107 SBA loan servicing rights $ — $ — $ 4,447 $ 4,447 Other real estate owned, held for sale: Former bank premises $ — $ — $ 1,728 $ 1,728 Total other real estate owned $ — $ — $ 1,728 $ 1,728 (21 – continued) The table below presents the balances of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis as of September 30, 2020. Carrying Value (In thousands) Level 1 Level 2 Level 3 Total September 30, 2020: Assets Measured – Recurring Basis Securities available for sale: Agency mortgage-backed $ — $ 7,952 $ — $ 7,952 Agency CMO — 9,805 — 9,805 Privately-issued CMO — 958 — 958 Privately-issued ABS — 960 — 960 SBA certificates — 694 — 694 Municipal bonds — 181,596 — 181,596 Total securities available for sale $ — $ 201,965 $ — $ 201,965 Residential mortgage loans held for sale – fair value option elected $ — $ 208,493 $ — $ 208,493 Derivative assets (included in other assets) $ — $ 226 $ 14,937 $ 15,163 Equity securities (included in other assets) $ 66 $ — $ — $ 66 Residential mortgage servicing rights $ — $ — $ 21,703 $ 21,703 Liabilities Measured – Recurring Basis Derivative liabilities (included in other liabilities) $ — $ 1,827 $ — $ 1,827 Assets Measured – Nonrecurring Basis Impaired loans: Residential real estate $ — $ — $ 5,329 $ 5,329 Commercial real estate — — 1,134 1,134 SBA commercial real estate — — 5,561 5,561 Multifamily — — 698 698 Land and land development — — 2 2 Commercial business — — 1,670 1,670 SBA commercial business — — 648 648 Consumer — — 199 199 Total impaired loans $ — $ — $ 15,241 $ 15,241 Residential mortgage loans held for sale – fair value option not elected $ — $ 54,913 $ — $ 54,913 SBA loans held for sale $ — $ 22,119 $ — $ 22,119 SBA loan servicing rights $ — $ — $ 3,748 $ 3,748 Other real estate owned, held for sale: Former bank premises $ — $ — $ 1,728 $ 1,728 Total other real estate owned $ — $ — $ 1,728 $ 1,728 |
Schedule of reconciliation of derivative assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The table below presents a reconciliation of derivative assets and liabilities (interest rate lock commitments) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended September 30, 2021, 2020 and 2019: (In thousands) 2021 2020 2019 Beginning balance $ 14,937 $ 3,269 $ 380 Unrealized gains (losses) recognized in earnings, net of settlements (13,370) 11,668 2,889 Ending balance $ 1,567 $ 14,937 $ 3,269 |
Schedule of significant unobservable inputs (Level 3) used in the valuation of derivative financial instruments measured at fair value on a recurring basis | The table below presents information about significant unobservable inputs (Level 3) used in the valuation of derivative financial instruments measured at fair value on a recurring basis as of September 30, 2021 and 2020. Significant Unobservable 2021 Range of Inputs 2020 Range of Inputs Financial Instrument Inputs (Weighted Average) (Weighted Average) Interest rate lock commitments Pull-through rate 58% - 100% (83%) 0% - 100% (80%) Direct costs to close 0.37% - 1.74% (0.86%) 0.31% - 1.01% (0.52%) |
Summary of reconciliation of MSRs measured at fair value on a recurring basis using significant unobservable inputs | The table below presents a reconciliation of MSRs measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended September 30, 2021, 2020 and 2019: (In thousands) 2021 2020 2019 Beginning balance $ 21,703 $ 934 $ — Issuances (loans sold with servicing retained) 36,679 24,058 940 Net settlements (9,555) (1,542) (6) Unrealized gains (losses) included in earnings 752 (1,747) — Ending balance $ 49,579 $ 21,703 $ 934 |
Summary of significant unobservable (Level 3) inputs of MSRs measured fair value on recurring basis | The table below presents information about significant unobservable inputs (Level 3) used in the valuation of MSRs measured at fair value on a recurring basis as of September 30, 2021 and 2020. Significant 2021 2020 Unobservable Range of Inputs Range of Inputs Financial Instrument Inputs (Weighted Average) (Weighted Average) MSRs Discount rate 8.50% - 10.00% (8.51%) 9.25% Prepayment rate 6.04% - 43.27% (10.00%) 2.99% - 86.98% (18.08%) |
Schedule of Provisions for loan losses recognized for impaired loans | The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of September 30, 2021 and 2020: Individually Collectively Evaluated for Evaluated for Ending Impairment Impairment Balance (In thousands) 2021: Residential real estate $ — $ 1,438 $ 1,438 Commercial real estate — 2,806 2,806 Single tenant net lease — 2,422 2,422 SBA commercial real estate 114 3,361 3,475 Multifamily — 518 518 Residential construction — 191 191 Commercial construction — 63 63 Land and land development — 235 235 Commercial business — 1,284 1,284 SBA commercial business 18 1,328 1,346 Consumer 1 522 523 $ 133 $ 14,168 $ 14,301 2020: Residential real estate $ 30 $ 1,225 $ 1,255 Commercial real estate — 3,058 3,058 Single tenant net lease — 3,017 3,017 SBA commercial real estate 1,366 2,788 4,154 Multifamily — 772 772 Residential construction — 243 243 Commercial construction — 181 181 Land and land development — 243 243 Commercial business — 1,449 1,449 SBA commercial business 47 1,492 1,539 Consumer — 1,115 1,115 $ 1,443 $ 15,583 $ 17,026 (4 – continued) The following table presents the activity in the allowance for loan losses by portfolio segment for the years ended September 30, 2021 and 2020: Beginning Provisions Ending Balance (Credits) Charge-Offs Recoveries Balance (In thousands) 2021: Residential real estate $ 1,255 $ 170 $ (11) $ 24 $ 1,438 Commercial real estate 3,058 (252) — — 2,806 Single tenant net lease 3,017 (595) — — 2,422 SBA commercial real estate 4,154 234 (936) 23 3,475 Multifamily 772 (254) — — 518 Residential construction 243 (52) — — 191 Commercial construction 181 (118) — — 63 Land and land development 243 (8) — — 235 Commercial business 1,449 (170) — 5 1,284 SBA commercial business 1,539 (211) (21) 39 1,346 Consumer 1,115 (511) (156) 75 523 $ 17,026 $ (1,767) $ (1,124) $ 166 $ 14,301 2020: Residential real estate $ 317 $ 945 $ (36) $ 29 $ 1,255 Commercial real estate 2,540 614 (102) 6 3,058 Single tenant net lease 1,675 1,342 — — 3,017 SBA commercial real estate 2,293 2,175 (360) 46 4,154 Multifamily 478 294 — — 772 Residential construction 248 (5) — — 243 Commercial construction 67 114 — — 181 Land and land development 209 28 — 6 243 Commercial business 889 567 (38) 31 1,449 SBA commercial business 750 1,109 (396) 76 1,539 Consumer 574 779 (238) — 1,115 $ 10,040 $ 7,962 $ (1,170) $ 194 $ 17,026 (4 – continued) The following table presents the activity in the allowance for loan losses by portfolio segment for the year ended September 30, 2019: Beginning Provisions Balance (Credits) Charge-Offs Recoveries Ending Balance (In thousands) 2019: Residential real estate $ 278 $ 30 $ (21) $ 30 $ 317 Commercial real estate 2,493 45 — 2 2,540 Single tenant net lease 2,843 (1,168) — — 1,675 SBA commercial real estate 1,581 1,286 (574) — 2,293 Multifamily 195 283 — — 478 Residential construction 388 (140) — — 248 Commercial construction 96 (29) — — 67 Land and land development 210 (1) — — 209 Commercial business 647 237 (8) 13 889 SBA commercial business 394 427 (71) — 750 Consumer 198 493 (174) 57 574 $ 9,323 $ 1,463 $ (848) $ 102 $ 10,040 |
Schedule of Impairment Charges to Write Down SBA Loan Servicing Rights at Fair Value | Impairment charges to write down SBA loan servicing rights to fair value for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Charges to write down SBA loan servicing rights $ 66 $ (116) $ 113 |
Schedule of aggregate fair value and the aggregate remaining principal balance for residential mortgage loans held for sale | The table below presents the difference between the aggregate fair value and the aggregate remaining principal balance for residential mortgage loans held for sale for which the fair value option had been elected as of September 30, 2021 and 2020. Aggregate September 30, 2021: Aggregate Principal (In thousands) Fair Value Balance Difference Residential mortgage loans held for sale $ 167,813 $ 163,158 $ 4,655 Aggregate (September 30, 2020: Aggregate Principal In thousands) Fair Value Balance Difference Residential mortgage loans held for sale $ 208,493 $ 198,138 $ 10,355 |
Schedule of gains and losses and interest included in earnings related to financial assets measured at fair value under the fair value option | The table below presents gains and losses and interest included in earnings related to financial assets measured at fair value under the fair value option for the years ended September 30, 2021, 2020 and 2019: (In thousands) 2021 2020 2019 Gains – included in mortgage banking income $ 2,017 $ 7,504 $ 2,492 Interest income 5,695 5,026 1,516 $ 7,712 $ 12,530 $ 4,008 |
Schedule of carrying value and estimated fair value of financial instruments and the level within the fair value hierarchy in which the fair value measurements fall | The following tables summarize the carrying value and estimated fair value of financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2021 and 2020. Fair Value Measurements Carrying Using: Amount Level 1 Level 2 Level 3 (In thousands) September 30, 2021: Financial assets: Cash and due from banks $ 14,191 $ 14,191 $ — $ — Interest-bearing deposits with banks 19,237 19,237 — — Interest-bearing time deposits 2,222 — 2,222 — Securities available for sale 206,681 — 206,681 — Securities held to maturity 1,837 — 2,054 — Residential mortgage loans held for sale 167,813 — 167,813 — Single tenant net lease loans held for sale 23,020 — — 23,020 SBA loans held for sale 24,107 — 27,312 — Loans, net 1,075,936 — — 1,124,226 FRB and FHLB stock 19,258 N/A N/A N/A Accrued interest receivable 6,243 — 6,243 — SBA loan servicing rights 4,447 — — 4,646 Residential mortgage loan servicing rights 49,579 — — 49,579 Derivative assets (included in other assets) 3,632 — 1,465 2,167 Equity securities (included in other assets) 112 112 — — Financial liabilities: Deposits 1,227,580 — — 1,228,147 Borrowings from FHLB 250,000 — 251,877 — Subordinated note 19,865 — 21,083 — Accrued interest payable 258 — 258 — Advance payments by borrowers for taxes and insurance 1,188 — 1,188 — Derivative liabilities (included in other liabilities) 635 — 35 600 (21 – continued) Fair Value Measurements Carrying Using: Amount Level 1 Level 2 Level 3 (In thousands) September 30, 2020: Financial assets: Cash and due from banks $ 12,807 $ 12,807 $ — $ — Interest-bearing deposits with banks 20,919 20,919 — — Interest-bearing time deposits 2,964 — 2,964 — Securities available for sale 201,965 — 201,965 — Securities held to maturity 2,102 — 2,385 — Residential mortgage loans held for sale 263,406 — 263,519 — SBA loans held for sale 22,119 — 24,666 — Loans, net 1,090,063 — — 1,152,962 FRB and FHLB stock 17,293 N/A N/A N/A Accrued interest receivable 6,462 — 6,462 — SBA loan servicing rights 3,748 — — 3,934 Residential mortgage loan servicing rights 21,703 — — 21,703 Derivative assets (included in other assets) 15,163 — 226 14,937 Equity securities (included in other assets) 66 66 — — Financial liabilities: Deposits 1,048,076 — — 1,050,569 Borrowings from FHLB 310,858 — 310,766 — Subordinated note 19,797 — 23,788 — Federal Reserve PPPLF borrowings 174,834 — 174,808 — Accrued interest payable 683 — 683 — Advance payments by borrowers for taxes and insurance 2,615 — 2,615 — Derivative liabilities (included in other liabilities) 1,827 — 1,827 — |
Impaired Loans [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Provisions for loan losses recognized for impaired loans | Provisions for loan losses recognized for impaired loans for the years ended September 30, 2021, 2020 and 2019 is as follows: (In thousands) 2021 2020 2019 Provision for loan losses recognized $ 381 $ 2,424 $ 860 |
CAPITAL REQUIREMENTS AND REST_2
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS | |
Schedule Of Actual capital amounts and ratios | The Company’s and Bank’s actual capital amounts and ratios are also presented in the table. The Company is not subject to the FRB’s consolidated capital requirements because it has less than $3 billion in total consolidated assets. However, management has elected to disclose the Company’s capital amounts and ratios in addition to the Bank’s required disclosures in the table below. No amount was deducted from capital for interest-rate risk at either date. Minimum To Be Well Capitalized Under Minimum for Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2021: Total capital (to risk-weighted assets): Consolidated $ 193,476 14.28 % $ 108,401 8.00 % N/A N/A Bank 183,885 13.60 % 108,156 8.00 % $ 135,195 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 159,310 11.76 % $ 81,301 6.00 % N/A N/A Bank 169,584 12.54 % 81,117 6.00 % $ 108,156 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 159,310 11.76 % $ 60,976 4.50 % N/A N/A Bank 169,584 12.54 % 60,838 4.50 % $ 87,877 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 159,310 9.73 % $ 65,480 4.00 % N/A N/A Bank 169,584 10.07 % 67,333 4.00 % $ 84,166 5.00 % As of September 30, 2020: Total capital (to risk-weighted assets): Consolidated $ 168,617 13.37 % $ 100,929 8.00 % N/A N/A Bank 160,452 12.75 % 100,672 8.00 % $ 125,840 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 133,520 10.58 % $ 75,697 6.00 % N/A N/A Bank 145,152 11.53 % 75,504 6.00 % $ 100,672 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 133,520 10.58 % $ 56,773 4.50 % N/A N/A Bank 145,152 11.53 % 56,428 4.50 % $ 81,796 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 133,520 8.53 % $ 62,617 4.00 % N/A N/A Bank 145,152 9.37 % 61,966 4.00 % $ 77,458 5.00 % |
SUPPLEMENTAL DISCLOSURE FOR E_2
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE | |
Schedule of net income per share information | Years Ended September 30, (In thousands, except share and per share data) 2021 2020 2019 Basic: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 29,567 $ 33,354 $ 16,177 Shares: Weighted average common shares outstanding, basic 7,107,786 7,070,040 6,947,091 Net income per common share, basic $ 4.16 $ 4.72 $ 2.33 Diluted: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 29,567 $ 33,354 $ 16,177 Shares: Weighted average common shares outstanding, basic 7,107,786 7,070,040 6,947,091 Add: Dilutive effect of outstanding options 56,176 48,540 151,869 Add: Dilutive effect of restricted stock 9,771 9,282 17,292 Weighted average common shares outstanding, as adjusted 7,173,733 7,127,862 7,116,252 Net income per common share, diluted $ 4.12 $ 4.68 $ 2.27 |
PARENT COMPANY CONDENSED FINA_2
PARENT COMPANY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | |
Condensed Balance Sheet Information | Balance Sheets As of September 30, (In thousands) 2021 2020 Assets: Cash and due from banks $ 6,870 $ 4,762 Other assets 755 988 Investment in subsidiaries 193,926 171,871 $ 201,551 $ 177,621 Liabilities and Equity: Subordinated note $ 19,865 $ 19,797 Accrued expenses 1,309 552 Stockholders’ equity 180,377 157,272 $ 201,551 $ 177,621 |
Condensed Income Statement Information | Statements of Income Years Ended September 30, (In thousands) 2021 2020 2019 Dividend income from subsidiaries $ 5,175 $ 1,000 $ 750 Interest expense (1,274) (1,274) (1,277) Other operating expenses (1,076) (1,002) (882) Income (loss) before income taxes and equity in undistributed net income of subsidiaries 2,825 (1,276) (1,409) Income tax benefit 504 598 747 Income (loss) before equity in undistributed net income of subsidiaries 3,329 (678) (662) Equity in undistributed net income of subsidiaries 26,238 34,032 16,839 Net income $ 29,567 $ 33,354 $ 16,177 |
Condensed Cash Flow Statement Information | Statements of Cash Flows Years Ended September 30, (In thousands) 2021 2020 2019 Operating Activities: Net income $ 29,567 $ 33,354 $ 16,177 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed net income of subsidiaries (26,238) (34,032) (16,839) Stock compensation expense 277 279 246 Net change in other assets and liabilities 201 182 (184) Net cash provided by (used in) operating activities 3,807 (217) (600) Investing Activities: Investment in bank subsidiary — — (2,000) Net cash used in investing activities — — (2,000) Financing Activities: Exercise of stock options 27 148 408 Tax paid on stock award shares for employees (41) (53) (32) Dividends paid (1,685) (1,590) (1,472) Net cash used in financing activities (1,699) (1,495) (1,096) Net increase (decrease) in cash and due from banks 2,108 (1,712) (3,696) Cash and due from banks at beginning of year 4,762 6,474 10,170 Cash and due from banks at end of year $ 6,870 $ 4,762 $ 6,474 |
SUPPLEMENTAL DISCLOSURE OF CA_2
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |
Schedule Of supplemental disclosures of cash flow information | Years Ended September 30, (In thousands) 2021 2020 2019 Cash payments for: Interest $ 8,517 $ 10,817 $ 10,729 Income taxes (net of refunds received) 9,051 3,971 1,572 Non-cash activities: Transfers from loans to loans held for sale 41,703 15,916 — Transfers from loans to other real estate owned 426 — 114 Proceeds from sales of other real estate owned financed through loans — — 112 Cashless exercise of stock options 77 249 542 Transfers from premises and equipment to other real estate owned — — 1,893 |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |
Quarterly Financial Information | First Second Third Fourth (In thousands, except per share data) Quarter Quarter Quarter Quarter September 30, 2021: Interest income $ 16,026 $ 16,840 $ 16,150 $ 16,243 Interest expense 2,287 2,060 1,921 1,819 Net interest income 13,739 14,780 14,229 14,424 Provision (credit) for loan losses 668 287 (2,730) 8 Net interest income after provision (credit) for loan losses 13,071 14,493 16,959 14,416 Noninterest income 46,183 38,973 18,785 16,495 Noninterest expenses 44,402 39,284 30,619 25,104 Income before income taxes 14,852 14,182 5,125 5,807 Income tax expense 4,527 3,695 817 958 Net income 10,325 10,487 4,308 4,849 Net income attributable to noncontrolling interest in subsidiary 402 — — — Net income attributable to First Savings Financial Group, Inc. $ 9,923 $ 10,487 $ 4,308 $ 4,849 Net income per common share, basic $ 1.40 $ 1.48 $ 0.61 $ 0.68 Net income per common share, diluted $ 1.39 $ 1.46 $ 0.60 $ 0.67 (27 – continued) First Second Third Fourth (In thousands, except per share data) Quarter Quarter Quarter Quarter September 30, 2020: Interest income $ 13,661 $ 13,554 $ 14,719 $ 15,765 Interest expense 2,875 2,783 2,543 2,337 Net interest income 10,786 10,771 12,176 13,428 Provision for loan losses 505 1,705 2,980 2,772 Net interest income after provision for loan losses 10,281 9,066 9,196 10,656 Noninterest income 18,232 11,133 46,962 57,024 Noninterest expenses 24,272 22,075 35,009 44,452 Income (loss) before income taxes 4,241 (1,876) 21,149 23,228 Income tax expense (benefit) 638 (774) 5,540 7,257 Net income (loss) 3,603 (1,102) 15,609 15,971 Net income (loss) attributable to noncontrolling interest in subsidiary 164 (475) 204 834 Net income (loss) attributable to First Savings Financial Group, Inc. $ 3,439 $ (627) $ 15,405 $ 15,137 Net income (loss) per common share, basic $ 0.49 $ (0.09) $ 2.17 $ 2.13 Net income (loss) per common share, diluted $ 0.48 $ (0.09) $ 2.17 $ 2.12 September 30, 2019: Interest income $ 11,801 $ 12,307 $ 13,058 $ 13,829 Interest expense 2,225 2,446 3,166 3,069 Net interest income 9,576 9,861 9,892 10,760 Provision for loan losses 315 340 337 471 Net interest income after provision for loan losses 9,261 9,521 9,555 10,289 Noninterest income 5,781 7,089 12,644 18,340 Noninterest expenses 11,416 12,880 16,488 21,606 Income before income taxes 3,626 3,730 5,711 7,023 Income tax expense 522 466 748 1,359 Net income 3,104 3,264 4,963 5,664 Net income attributable to noncontrolling interest in subsidiary 173 (269) 571 343 Net income attributable to First Savings Financial Group, Inc. $ 2,931 $ 3,533 $ 4,392 $ 5,321 Net income per common share, basic $ 0.43 $ 0.51 $ 0.63 $ 0.76 Net income per common share, diluted $ 0.41 $ 0.50 $ 0.62 $ 0.75 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
SEGMENT REPORTING | |
Schedule of sum of the segment amounts and consolidated totals | The following segment financial information has been derived from the internal financial statements of the Company which are used by management to monitor and manage financial performance. The accounting policies of the three segments are the same as those of the Company. The amounts reflected in the “Other” column in the tables below represent combined balances of the Company and the Captive, and are the primary differences between the sum of the segment amounts and consolidated totals, along with amounts to eliminate transactions between segments. Core SBA Mortgage Consolidated (In thousands) Banking Lending Banking Other Totals Year Ended September 30, 2021: Net interest income (loss) $ 46,122 $ 10,339 $ 1,940 $ (1,229) $ 57,172 Provision (credit) for loan losses (1,782) 15 — — (1,767) Net interest income (loss) after provision 47,904 10,324 1,940 (1,229) 58,939 Net gains on sales of loans, SBA — 8,740 — — 8,740 Mortgage banking income 4 — 104,500 — 104,504 Noninterest income 6,331 9,661 104,444 — 120,436 Noninterest expense (income) 35,636 9,374 94,768 (369) 139,409 Income (loss) before taxes 18,599 10,611 11,616 (860) 39,966 Income tax expense (benefit) 2,935 2,512 5,047 (497) 9,997 Segment profit (loss) 15,664 8,099 6,569 (363) 29,969 Noncash items: Depreciation and amortization 1,953 42 237 68 2,300 Segment assets at September 30, 2021 1,468,483 168,342 232,279 (148,598) 1,720,506 (28 – continued) Core SBA Mortgage Consolidated (In thousands) Banking Lending Banking Other Totals Year Ended September 30, 2020: Net interest income (loss) $ 39,408 $ 5,911 $ 3,046 $ (1,204) $ 47,161 Provision for loan losses 4,636 3,326 — — 7,962 Net interest income (loss) after provision 34,772 2,585 3,046 (1,204) 39,199 Net gains on sales of loans, SBA — 5,673 — — 5,673 Mortgage banking income 8 — 120,725 — 120,733 Noninterest income 5,905 6,751 120,695 — 133,351 Noninterest expense (income) 29,772 7,853 88,573 (390) 125,808 Income (loss) before taxes 10,905 1,483 35,168 (814) 46,742 Income tax expense (benefit) 2,265 189 10,793 (586) 12,661 Segment profit (loss) 8,640 1,294 24,375 (228) 34,081 Noncash items: Depreciation and amortization 1,558 51 181 68 1,858 Segment assets at September 30, 2020 1,459,467 283,994 293,973 (272,809) 1,764,625 Core SBA Mortgage Consolidated (In thousands) Banking Lending Banking Other Totals Year Ended September 30, 2019: Net interest income (loss) $ 36,524 $ 4,145 $ 636 $ (1,216) $ 40,089 Provision (credit) for loan losses (242) 1,705 — — 1,463 Net interest income (loss) after provision 36,766 2,440 636 (1,216) 38,626 Net gains on sales of loans, SBA — 4,569 — — 4,569 Mortgage banking income 33 — 33,011 — 33,044 Noninterest income 5,650 5,182 33,022 — 43,854 Noninterest expense (income) 28,852 5,953 27,760 (175) 62,390 Income (loss) before taxes 13,564 1,669 5,898 (1,041) 20,090 Income tax expense (benefit) 2,143 213 1,475 (736) 3,095 Segment profit (loss) 11,421 1,456 4,423 (305) 16,995 Noncash items: Depreciation and amortization 1,467 49 100 68 1,684 Segment assets at September 30, 2019 1,124,526 84,661 88,645 (75,253) 1,222,579 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of sources of noninterest income | Substantially all of the Company’s revenue from contracts with customers within the scope of FASB ASC 606 is included in the core banking segment and is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the years ended September 30, 2021, 2020 and 2019: Year Ended September 30, (In thousands) 2021 2020 2019 Service charges on deposit accounts $ 1,468 $ 1,581 $ 1,957 ATM and interchange fees 2,399 2,116 1,949 Investment advisory income 589 288 324 Other 103 101 137 Revenue from contracts with customers 4,559 4,086 4,367 Gain (loss) on securities — 7 (74) Gain on sale of SBA loans 8,740 5,673 4,569 Mortgage banking income 104,504 120,733 33,044 Increase in cash value of life insurance 785 732 580 Real estate lease income 592 589 594 Other 1,256 1,531 774 Other noninterest income 115,877 129,265 39,487 Total noninterest income $ 120,436 $ 133,351 $ 43,854 |
MORTGAGE BANKING INCOME (Tables
MORTGAGE BANKING INCOME (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
MORTGAGE BANKING INCOME | |
Summary of components of mortgage banking income | 2021 2020 2019 (In thousands) Origination and sale of mortgage loans (1) $ 83,874 $ 105,659 $ 30,503 Mortgage brokerage income 1,500 — — Net change in fair value of loans held for sale and interest rate lock commitments (18,856) 16,680 5,124 Realized and unrealized hedging gains (losses) 4,140 (22,412) (3,462) Capitalized residential mortgage loan servicing rights 36,679 24,058 940 Net change in fair value of residential mortgage loan servicing rights (8,803) (3,289) (6) Net loan servicing income 6,565 651 37 Provisions for loan repurchases and indemnifications (595) (614) (92) Total mortgage banking income $ 104,504 $ 120,733 $ 33,044 (1) Includes origination fees and realized gains and losses on the sale of mortgage loans in the secondary market. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Cumulative Allocated Net Income | $ 3,200,000 | ||
Net deferred tax assets | $ 6,704,000 | $ 6,553,000 | |
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 2,569,000 | ||
Loans and Leases Receivable, Impaired, Interest Income Recognized, Change in Present Value Attributable to Passage of Time | 250,000 | ||
Net lease loans held for sale carried at the lower of aggregate cost or fair value | $ 167,813,000 | 208,493,000 | |
Percentage Of Income Tax Realized Upon Settlement | 50.00% | ||
Allowance for loan losses | $ 14,301,000 | 17,026,000 | |
Allowance for loan losses, qualitative factor adjustments | 13,100,000 | 14,800,000 | |
Allowance for loan losses, COVID-19 qualitative factor adjustments | $ 2,300,000 | 4,600,000 | |
Business Capital LLC [Member] | |||
Net deferred tax assets | 590,000 | ||
Maximum [Member] | |||
Lookback period | 36 months | ||
Minimum [Member] | |||
Lookback period | 12 months | ||
Small Business Administration Loans [Member] | |||
Loans held for sale, Small Business Administration | $ 24,100,000 | $ 22,100,000 | |
Net lease loans held for sale carried at the lower of aggregate cost or fair value | $ 23,000,000 | ||
Small Business Administration Loans [Member] | Maximum [Member] | |||
Guarantor Obligations, Liquidation Proceeds, Percentage | 90.00% | ||
Small Business Administration Loans [Member] | Minimum [Member] | |||
Guarantor Obligations, Liquidation Proceeds, Percentage | 75.00% | ||
Interest-bearing Deposits [Member] | |||
Maturity of Time Deposits | 90 days | ||
Subsidiary [Member] | |||
Equity Method Investment, Ownership Percentage | 51.00% | ||
Subsidiary [Member] | Business Capital LLC [Member] | |||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 695,000 | ||
Additional paid in capital | $ 1,900,000 |
RESTRICTION ON CASH AND DUE F_2
RESTRICTION ON CASH AND DUE FROM BANKS (Additional Information) (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 |
RESTRICTION ON CASH AND DUE FROM BANKS | |||
Restricted Cash and Cash Equivalents | $ 0 | $ 10,600 | $ 20,300 |
INVESTMENT SECURITIES - Fair Va
INVESTMENT SECURITIES - Fair Value to Amortized Cost (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Securities available for sale: | ||
Amortized Cost | $ 195,417 | $ 187,778 |
Gross Unrealized Gain | 11,717 | 14,259 |
Gross Unrealized Losses | 453 | 72 |
Fair Value | 206,681 | 201,965 |
Securities held to maturity: | ||
Amortized Cost | 1,837 | 2,102 |
Gross Unrealized Gain | 217 | 283 |
Gross Unrealized Losses | 0 | |
Fair Value | 2,054 | 2,385 |
U.S. Treasury bills | ||
Securities available for sale: | ||
Amortized Cost | 250 | |
Fair Value | 250 | |
Agency Mortgage-Backed | ||
Securities available for sale: | ||
Amortized Cost | 8,143 | 7,499 |
Gross Unrealized Gain | 293 | 453 |
Gross Unrealized Losses | 52 | 0 |
Fair Value | 8,384 | 7,952 |
Securities held to maturity: | ||
Amortized Cost | 64 | 82 |
Gross Unrealized Gain | 5 | 7 |
Gross Unrealized Losses | 0 | |
Fair Value | 69 | 89 |
Agency CMO | ||
Securities available for sale: | ||
Amortized Cost | 13,315 | 9,398 |
Gross Unrealized Gain | 235 | 407 |
Gross Unrealized Losses | 20 | 0 |
Fair Value | 13,530 | 9,805 |
Privately-issued CMO | ||
Securities available for sale: | ||
Amortized Cost | 729 | 886 |
Gross Unrealized Gain | 81 | 80 |
Gross Unrealized Losses | 7 | 8 |
Fair Value | 803 | 958 |
Privately-issued ABS | ||
Securities available for sale: | ||
Amortized Cost | 721 | 884 |
Gross Unrealized Gain | 51 | 81 |
Gross Unrealized Losses | 5 | |
Fair Value | 772 | 960 |
SBA certificates | ||
Securities available for sale: | ||
Amortized Cost | 2,157 | 639 |
Gross Unrealized Gain | 2 | 58 |
Gross Unrealized Losses | 21 | 3 |
Fair Value | 2,138 | 694 |
Municipal bonds | ||
Securities available for sale: | ||
Amortized Cost | 170,102 | 168,472 |
Gross Unrealized Gain | 11,055 | 13,180 |
Gross Unrealized Losses | 353 | 56 |
Fair Value | 180,804 | 181,596 |
Securities held to maturity: | ||
Amortized Cost | 1,773 | 2,020 |
Gross Unrealized Gain | 212 | 276 |
Gross Unrealized Losses | 0 | |
Fair Value | $ 1,985 | $ 2,296 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized Cost and Fair Value by Contractual Maturity - Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Available for Sale - Amortized Cost | ||
Amortized Cost | $ 195,417 | $ 187,778 |
Available for Sale - Fair Value | ||
Fair Value | 206,681 | 201,965 |
Municipal bonds | ||
Available for Sale - Amortized Cost | ||
Due within one year | 9,601 | |
Due after one year through five years | 25,282 | |
Due after five years through ten years | 32,028 | |
Due after ten years | 103,441 | |
Amortized Cost | 170,102 | 168,472 |
Available for Sale - Fair Value | ||
Due within one year | 9,697 | |
Due after one year through five years | 26,429 | |
Due after five years through ten years | 34,095 | |
Due after ten years | 110,833 | |
Fair Value | 180,804 | 181,596 |
CMO | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 14,044 | |
Available for Sale - Fair Value | ||
Without single maturity date | 14,333 | |
ABS | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 721 | |
Available for Sale - Fair Value | ||
Without single maturity date | 772 | |
SBA certificates | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 2,157 | |
Amortized Cost | 2,157 | 639 |
Available for Sale - Fair Value | ||
Without single maturity date | 2,138 | |
Fair Value | 2,138 | $ 694 |
Mortgage-backed securities | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 8,143 | |
Available for Sale - Fair Value | ||
Without single maturity date | $ 8,384 |
INVESTMENT SECURITIES - Amort_2
INVESTMENT SECURITIES - Amortized Cost and Fair Value by Contractual Maturity - Held to Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Held to Maturity - Amortized Cost | ||
Amortized Cost | $ 1,837 | |
Held to Maturity - Fair Value | ||
Fair Value | 2,054 | $ 2,385 |
Municipal bonds | ||
Held to Maturity - Amortized Cost | ||
Due within one year | 260 | |
Due after one year through five years | 914 | |
Due after five years through ten years | 599 | |
Due after ten years | 0 | |
Held to Maturity - Fair Value | ||
Due within one year | 285 | |
Due after one year through five years | 1,014 | |
Due after five years through ten years | 686 | |
Due after ten years | 0 | |
Fair Value | 1,985 | $ 2,296 |
CMO | ||
Held to Maturity - Amortized Cost | ||
Without single maturity date | 0 | |
Held to Maturity - Fair Value | ||
Without single maturity date | 0 | |
ABS | ||
Held to Maturity - Amortized Cost | ||
Without single maturity date | 0 | |
Held to Maturity - Fair Value | ||
Without single maturity date | 0 | |
SBA certificates | ||
Held to Maturity - Amortized Cost | ||
Without single maturity date | 0 | |
Held to Maturity - Fair Value | ||
Without single maturity date | 0 | |
Mortgage-backed securities | ||
Held to Maturity - Amortized Cost | ||
Without single maturity date | 64 | |
Held to Maturity - Fair Value | ||
Without single maturity date | $ 69 |
INVESTMENT SECURITIES - Investm
INVESTMENT SECURITIES - Investment Securities With Gross Unrealized Losses (Details) $ in Thousands | Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($)item | Sep. 30, 2019item |
Fair Value | |||
Continuous loss position less than twelve months | $ 20,439 | $ 2,890 | |
Continuous loss position more than twelve months | 2,013 | 214 | |
Total securities available for sale | $ 22,452 | $ 3,104 | |
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 22 | 3 | |
Continuous loss position more than twelve months | item | 3 | 2 | |
Total securities available for sale | item | 25 | 5 | |
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 346 | $ 61 | |
Continuous loss position more than twelve months | 107 | 11 | |
Total securities available for sale | 453 | 72 | |
Federal agency mortgage-backed securities | |||
Fair Value | |||
Continuous loss position less than twelve months | $ 3,056 | ||
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 1 | ||
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 52 | ||
Privately-issued CMO | |||
Fair Value | |||
Continuous loss position more than twelve months | $ 23 | $ 26 | |
Number of Investment Positions | |||
Continuous loss position more than twelve months | item | 1 | 1 | |
Gross Unrealized Losses | |||
Continuous loss position more than twelve months | $ 7 | $ 8 | |
Privately-issued ABS | |||
Fair Value | |||
Continuous loss position less than twelve months | $ 446 | ||
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 1 | ||
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 5 | ||
Federal agency CMO | |||
Fair Value | |||
Continuous loss position less than twelve months | $ 1,466 | ||
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 2 | ||
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 20 | ||
SBA certificates | |||
Fair Value | |||
Continuous loss position less than twelve months | 2,013 | ||
Continuous loss position more than twelve months | $ 88 | $ 188 | |
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 1 | ||
Continuous loss position more than twelve months | item | 1 | 1 | |
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 20 | ||
Continuous loss position more than twelve months | 1 | $ 3 | |
Municipal bonds | |||
Fair Value | |||
Continuous loss position less than twelve months | 13,904 | $ 2,444 | |
Continuous loss position more than twelve months | $ 1,902 | ||
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 18 | 2 | |
Continuous loss position more than twelve months | item | 1 | ||
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 254 | $ 56 | |
Continuous loss position more than twelve months | $ 99 |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Details) | 12 Months Ended | ||
Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Available for sale debt securities in loss position, depreciation percentage | 2.56% | ||
Continuous loss position more than twelve months | item | 3 | 2 | |
Gross realized gains on sales | $ 0 | $ 17,000 | $ 68,000 |
Gross realized losses on sales | $ 0 | $ (10,000) | $ (142,000) |
Weighted Average Yield Of Available For Sale Securities In Loss Positions | 1.77% | ||
Debt Securities [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Available for sale debt securities in loss position, depreciation percentage | 1.86% | ||
Debt Securities [Member] | Downgraded Due To Potential Credit Losses [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Carrying Value Of Downgraded Due To Potential Credit Losses | $ 512,000 | ||
Debt Securities [Member] | Downgraded Privately Issued Cmos [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fair Market Value Of Downgraded Privately Issued Collateralized Mortgage Obligations | $ 526,000 | ||
Two Privately Issued Collateralized Mortgage Obligations [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Available for sale debt securities in loss position, depreciation percentage | 1.87% | ||
Privately-issued CMO | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Continuous loss position more than twelve months | item | 1 | 1 | |
Investments, Fair Value Disclosure | $ 384,000 | ||
Privately-issued ABS | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Total unrealized loss | $ 7,000 |
INVESTMENT SECURITIES - Gross R
INVESTMENT SECURITIES - Gross Realized Gain and Losses on Sales of Available for Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Gross Realized Gain and Losses | |||
Gross realized gains on sales | $ 0 | $ 17 | $ 68 |
Gross realized losses on sales | 0 | (10) | (142) |
Net realized gain (loss) on sales of available for sale securities and time deposits | $ 0 | $ 7 | $ (74) |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loans (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Loans and Allowance for Loan Losses | ||
Gross loans | $ 1,089,956,000 | $ 1,109,416,000 |
Deferred loan origination fees and costs, net (2) | 281,000 | (2,327,000) |
Allowance for loan losses | (14,301,000) | (17,026,000) |
Loans, net | 1,075,936,000 | 1,090,063,000 |
Other Financial Institutions [Member] | ||
Loans and Allowance for Loan Losses | ||
Loans, net | 216,000 | 245,000 |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net (2) | (208,000) | (197,000) |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net (2) | (123,000) | (234,000) |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net (2) | (47,000) | (37,000) |
Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net (2) | (49,000) | (28,000) |
Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net (2) | (28,000) | (26,000) |
Land and Land Development [Member] | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net (2) | (6,000) | (11,000) |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net (2) | (420,000) | (2,740,000) |
Consumer [Member] | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net (2) | (17,000) | (23,000) |
Commercial Business [Member] | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net (2) | 49,000 | 43,000 |
Pay Check Protection Program [Member] | ||
Loans and Allowance for Loan Losses | ||
Gross loans | 56,700,000 | 180,600,000 |
Deferred loan origination fees and costs, net (2) | 757,000 | 3,200,000 |
Real estate mortgage [Member] | One To Four Family [Member] | ||
Loans and Allowance for Loan Losses | ||
Gross loans | 241,425,000 | 191,781,000 |
Real estate mortgage [Member] | Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Gross loans | 149,600,000 | 141,522,000 |
Real estate mortgage [Member] | Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Gross loans | 403,692,000 | 334,636,000 |
Real estate mortgage [Member] | SBA | ||
Loans and Allowance for Loan Losses | ||
Gross loans | 62,805,000 | 55,508,000 |
Real estate mortgage [Member] | Multifamily | ||
Loans and Allowance for Loan Losses | ||
Gross loans | 40,324,000 | 42,368,000 |
Real estate mortgage [Member] | Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Gross loans | 8,330,000 | 9,361,000 |
Real estate mortgage [Member] | Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Gross loans | 2,717,000 | 6,941,000 |
Real estate mortgage [Member] | Land and Land Development [Member] | ||
Loans and Allowance for Loan Losses | ||
Gross loans | 10,217,000 | 9,403,000 |
Real estate mortgage [Member] | Commercial business | ||
Loans and Allowance for Loan Losses | ||
Gross loans | 59,883,000 | 60,513,000 |
Real estate mortgage [Member] | SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Gross loans | 80,400,000 | 206,807,000 |
Real estate mortgage [Member] | Consumer [Member] | ||
Loans and Allowance for Loan Losses | ||
Gross loans | $ 30,563,000 | $ 50,576,000 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Activity For Related Party Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | ||
Beginning balance | $ 7,716 | $ 9,115 |
New loans and advances | 4,832 | 8,438 |
Repayments | (2,601) | (4,162) |
Loans sold | (2,992) | (4,250) |
Reclassifications due to officer and director changes | (980) | (1,425) |
Ending balance | 5,975 | 7,716 |
Off Balance Sheet Commitments to Related Parties | $ 3,000 | $ 2,600 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Components of Recorded Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Recorded Investment in Loans: | ||
Principal loan balance | $ 1,089,956 | $ 1,109,416 |
Accrued interest receivable | 4,398 | 4,585 |
Net deferred loan origination fees and costs | 281 | (2,327) |
Recorded investment in loans | 1,094,635 | 1,111,674 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 16,743 | 16,684 |
Collectively evaluated for impairment | 1,077,892 | 1,094,990 |
Ending balance | 1,094,635 | 1,111,674 |
Residential real estate [Member] | ||
Recorded Investment in Loans: | ||
Principal loan balance | 241,425 | 191,781 |
Accrued interest receivable | 821 | 644 |
Net deferred loan origination fees and costs | 24 | (156) |
Recorded investment in loans | 242,270 | 192,269 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 3,067 | 5,359 |
Collectively evaluated for impairment | 239,203 | 186,910 |
Ending balance | 242,270 | 192,269 |
Commercial real estate | ||
Recorded Investment in Loans: | ||
Principal loan balance | 149,600 | 141,522 |
Accrued interest receivable | 563 | 812 |
Net deferred loan origination fees and costs | (208) | (197) |
Recorded investment in loans | 149,955 | 142,137 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 1,021 | 1,134 |
Collectively evaluated for impairment | 148,934 | 141,003 |
Ending balance | 149,955 | 142,137 |
Single tenant net lease | ||
Recorded Investment in Loans: | ||
Principal loan balance | 403,692 | 334,636 |
Accrued interest receivable | 1,369 | 1,198 |
Net deferred loan origination fees and costs | (123) | (234) |
Recorded investment in loans | 404,938 | 335,600 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 404,938 | 335,600 |
Ending balance | 404,938 | 335,600 |
SBA commercial real estate | ||
Recorded Investment in Loans: | ||
Principal loan balance | 62,805 | 55,508 |
Accrued interest receivable | 475 | 387 |
Net deferred loan origination fees and costs | 1,106 | 1,082 |
Recorded investment in loans | 64,386 | 56,977 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 9,153 | 6,927 |
Collectively evaluated for impairment | 55,233 | 50,050 |
Ending balance | 64,386 | 56,977 |
Multifamily | ||
Recorded Investment in Loans: | ||
Principal loan balance | 40,324 | 42,368 |
Accrued interest receivable | 76 | 139 |
Net deferred loan origination fees and costs | (47) | (37) |
Recorded investment in loans | 40,353 | 42,470 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 482 | 698 |
Collectively evaluated for impairment | 39,871 | 41,772 |
Ending balance | 40,353 | 42,470 |
Residential Construction | ||
Recorded Investment in Loans: | ||
Principal loan balance | 8,330 | 9,361 |
Accrued interest receivable | 14 | 25 |
Net deferred loan origination fees and costs | (49) | (28) |
Recorded investment in loans | 8,295 | 9,358 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 8,295 | 9,358 |
Ending balance | 8,295 | 9,358 |
Commercial Construction | ||
Recorded Investment in Loans: | ||
Principal loan balance | 2,717 | 6,941 |
Accrued interest receivable | 6 | 24 |
Net deferred loan origination fees and costs | (28) | (26) |
Recorded investment in loans | 2,695 | 6,939 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 2,695 | 6,939 |
Ending balance | 2,695 | 6,939 |
Land and Land Development [Member] | ||
Recorded Investment in Loans: | ||
Principal loan balance | 10,217 | 9,403 |
Accrued interest receivable | 18 | 20 |
Net deferred loan origination fees and costs | (6) | (11) |
Recorded investment in loans | 10,229 | 9,412 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 2 | |
Collectively evaluated for impairment | 10,229 | 9,410 |
Ending balance | 10,229 | 9,412 |
Commercial Business [Member] | ||
Recorded Investment in Loans: | ||
Principal loan balance | 59,883 | 60,513 |
Accrued interest receivable | 171 | 186 |
Net deferred loan origination fees and costs | 49 | 43 |
Recorded investment in loans | 60,103 | 60,742 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 1,476 | 1,670 |
Collectively evaluated for impairment | 58,627 | 59,072 |
Ending balance | 60,103 | 60,742 |
SBA commercial business | ||
Recorded Investment in Loans: | ||
Principal loan balance | 80,400 | 206,807 |
Accrued interest receivable | 791 | 975 |
Net deferred loan origination fees and costs | (420) | (2,740) |
Recorded investment in loans | 80,771 | 205,042 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 1,296 | 695 |
Collectively evaluated for impairment | 79,475 | 204,347 |
Ending balance | 80,771 | 205,042 |
Consumer [Member] | ||
Recorded Investment in Loans: | ||
Principal loan balance | 30,563 | 50,576 |
Accrued interest receivable | 94 | 175 |
Net deferred loan origination fees and costs | (17) | (23) |
Recorded investment in loans | 30,640 | 50,728 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 248 | 199 |
Collectively evaluated for impairment | 30,392 | 50,529 |
Ending balance | $ 30,640 | $ 50,728 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Changes in Allowance for Loan Losses: | |||
Beginning balance | $ 17,026 | $ 10,040 | $ 9,323 |
Provisions | (1,767) | 7,962 | 1,463 |
Charge-offs | (1,124) | (1,170) | (848) |
Recoveries | 166 | 194 | 102 |
Ending balance | 14,301 | 17,026 | 10,040 |
Off-balance-sheet commitments | 3,000 | 2,600 | |
Ending Allowance Balance Attributable to Loans: | |||
Individually evaluated for impairment | 133 | 1,443 | |
Collectively evaluated for impairment | 14,168 | 15,583 | |
Ending balance | 14,301 | 17,026 | 10,040 |
Residential real estate [Member] | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 1,255 | 317 | 278 |
Provisions | 170 | 945 | 30 |
Charge-offs | (11) | (36) | (21) |
Recoveries | 24 | 29 | 30 |
Ending balance | 1,438 | 1,255 | 317 |
Ending Allowance Balance Attributable to Loans: | |||
Individually evaluated for impairment | 30 | ||
Collectively evaluated for impairment | 1,438 | 1,225 | |
Ending balance | 1,438 | 1,255 | 317 |
Commercial real estate | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 3,058 | 2,540 | 2,493 |
Provisions | (252) | 614 | 45 |
Charge-offs | 0 | (102) | |
Recoveries | 0 | 6 | 2 |
Ending balance | 2,806 | 3,058 | 2,540 |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 2,806 | 3,058 | |
Ending balance | 2,806 | 3,058 | 2,540 |
Single tenant net lease | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 3,017 | 1,675 | 2,843 |
Provisions | (595) | 1,342 | (1,168) |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending balance | 2,422 | 3,017 | 1,675 |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 2,422 | 3,017 | |
Ending balance | 2,422 | 3,017 | 1,675 |
SBA commercial real estate | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 4,154 | 2,293 | 1,581 |
Provisions | 234 | 2,175 | 1,286 |
Charge-offs | (936) | (360) | (574) |
Recoveries | 23 | 46 | |
Ending balance | 3,475 | 4,154 | 2,293 |
Ending Allowance Balance Attributable to Loans: | |||
Individually evaluated for impairment | 114 | 1,366 | |
Collectively evaluated for impairment | 3,361 | 2,788 | |
Ending balance | 3,475 | 4,154 | 2,293 |
Multifamily | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 772 | 478 | 195 |
Provisions | (254) | 294 | 283 |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending balance | 518 | 772 | 478 |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 518 | 772 | |
Ending balance | 518 | 772 | 478 |
Residential Construction | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 243 | 248 | 388 |
Provisions | (52) | (5) | (140) |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending balance | 191 | 243 | 248 |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 191 | 243 | |
Ending balance | 191 | 243 | 248 |
Commercial Construction | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 181 | 67 | 96 |
Provisions | (118) | 114 | (29) |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending balance | 63 | 181 | 67 |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 63 | 181 | |
Ending balance | 63 | 181 | 67 |
Land and Land Development [Member] | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 243 | 209 | 210 |
Provisions | (8) | 28 | (1) |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 6 | |
Ending balance | 235 | 243 | 209 |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 235 | 243 | |
Ending balance | 235 | 243 | 209 |
Commercial Business [Member] | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 1,449 | 889 | 647 |
Provisions | (170) | 567 | 237 |
Charge-offs | 0 | (38) | (8) |
Recoveries | 5 | 31 | 13 |
Ending balance | 1,284 | 1,449 | 889 |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 1,284 | 1,449 | |
Ending balance | 1,284 | 1,449 | 889 |
SBA commercial business | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 1,539 | 750 | 394 |
Provisions | (211) | 1,109 | 427 |
Charge-offs | (21) | (396) | (71) |
Recoveries | 39 | 76 | |
Ending balance | 1,346 | 1,539 | 750 |
Ending Allowance Balance Attributable to Loans: | |||
Individually evaluated for impairment | 18 | 47 | |
Collectively evaluated for impairment | 1,328 | 1,492 | |
Ending balance | 1,346 | 1,539 | 750 |
Consumer [Member] | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 1,115 | 574 | 198 |
Provisions | (511) | 779 | 493 |
Charge-offs | (156) | (238) | (174) |
Recoveries | 75 | 0 | 57 |
Ending balance | 523 | 1,115 | 574 |
Ending Allowance Balance Attributable to Loans: | |||
Individually evaluated for impairment | 1 | ||
Collectively evaluated for impairment | 522 | 1,115 | |
Ending balance | $ 523 | $ 1,115 | $ 574 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Recorded Investment | $ 15,546 | $ 10,317 | $ 10,022 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 17,245 | 10,915 | 10,562 | |
Loans with no related allowance recorded, Related Allowance | 0 | |||
Loans with no related allowance recorded, Average Recorded Investment | 13,482 | 11,400 | 11,702 | |
Loans with no related allowance recorded, Interest Income Recognized | 102 | 298 | 431 | |
Loans with an allowance recorded, Recorded Investment | 1,197 | 6,367 | 2,412 | |
Loans with an allowance recorded, Unpaid Principal Balance | 1,624 | 6,798 | 2,799 | |
Loans with an allowance recorded, Related Allowance | 133 | 1,443 | 545 | |
Loans with an allowance recorded, Average Recorded Investment | 3,915 | 5,752 | 2,433 | |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | ||
Total, Recorded Investment | 16,743 | 16,684 | 12,434 | |
Total, Unpaid Principal Balance | 18,869 | 17,713 | 13,361 | |
Total, Related Allowance | 133 | 1,443 | 545 | |
Total, Average Recorded Investment | 17,397 | 17,152 | 14,135 | |
Total, Interest Income Recognized | 102 | 298 | 431 | |
Residential real estate [Member] | ||||
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Recorded Investment | 3,002 | 5,185 | 4,438 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 3,551 | 5,697 | 4,967 | |
Loans with no related allowance recorded, Related Allowance | 0 | $ 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 4,383 | 5,411 | 5,037 | |
Loans with no related allowance recorded, Interest Income Recognized | 68 | 127 | 115 | |
Loans with an allowance recorded, Recorded Investment | 65 | 174 | 10 | |
Loans with an allowance recorded, Unpaid Principal Balance | 65 | 175 | 7 | |
Loans with an allowance recorded, Related Allowance | 30 | 10 | ||
Loans with an allowance recorded, Average Recorded Investment | 108 | 59 | 122 | |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | ||
Total, Recorded Investment | 3,067 | 5,359 | 4,448 | |
Total, Unpaid Principal Balance | 3,616 | 5,872 | 4,974 | |
Total, Related Allowance | 30 | 10 | ||
Total, Average Recorded Investment | 4,491 | 5,470 | 5,159 | |
Total, Interest Income Recognized | 68 | 127 | 115 | |
Commercial real estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Recorded Investment | 1,021 | 1,134 | 5,282 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 1,092 | 1,185 | 5,264 | |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 1,148 | 3,914 | 6,225 | |
Loans with no related allowance recorded, Interest Income Recognized | 29 | 167 | 305 | |
Loans with an allowance recorded, Recorded Investment | 0 | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | ||
Loans with an allowance recorded, Related Allowance | 0 | |||
Loans with an allowance recorded, Average Recorded Investment | 0 | 20 | 10 | |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | ||
Total, Recorded Investment | 1,021 | 1,134 | 5,282 | |
Total, Unpaid Principal Balance | 1,092 | 1,185 | 5,264 | |
Total, Related Allowance | 0 | |||
Total, Average Recorded Investment | 1,148 | 3,934 | 6,235 | |
Total, Interest Income Recognized | 29 | 167 | 305 | |
Single tenant net lease | ||||
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Recorded Investment | 0 | 0 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 0 | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 0 | 0 | ||
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | ||
Loans with an allowance recorded, Recorded Investment | 0 | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | ||
Loans with an allowance recorded, Average Recorded Investment | 0 | 0 | ||
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | ||
Total, Recorded Investment | 0 | 0 | ||
Total, Unpaid Principal Balance | 0 | 0 | ||
Total, Average Recorded Investment | 0 | 0 | ||
Total, Interest Income Recognized | 0 | 0 | ||
SBA commercial real estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Recorded Investment | 8,184 | 1,245 | 119 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 8,873 | 1,178 | 144 | |
Loans with no related allowance recorded, Average Recorded Investment | 4,738 | 586 | 112 | |
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | ||
Loans with an allowance recorded, Recorded Investment | 969 | 5,682 | 2,246 | |
Loans with an allowance recorded, Unpaid Principal Balance | 1,394 | 6,086 | 2,637 | |
Loans with an allowance recorded, Related Allowance | 114 | 1,366 | 512 | |
Loans with an allowance recorded, Average Recorded Investment | 3,389 | 5,048 | 2,116 | |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | ||
Total, Recorded Investment | 9,153 | 6,927 | 2,365 | |
Total, Unpaid Principal Balance | 10,267 | 7,264 | 2,781 | |
Total, Related Allowance | 114 | 1,366 | 512 | |
Total, Average Recorded Investment | 8,127 | 5,634 | 2,228 | |
Total, Interest Income Recognized | 0 | 0 | ||
Multifamily | ||||
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Recorded Investment | 482 | 698 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 539 | 700 | ||
Loans with no related allowance recorded, Related Allowance | 0 | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 638 | 421 | ||
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | ||
Loans with an allowance recorded, Recorded Investment | 0 | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | ||
Loans with an allowance recorded, Average Recorded Investment | 0 | 0 | ||
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | ||
Total, Recorded Investment | 482 | 698 | ||
Total, Unpaid Principal Balance | 539 | 700 | ||
Total, Average Recorded Investment | 638 | 421 | ||
Total, Interest Income Recognized | 0 | 0 | ||
Residential Construction | ||||
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Recorded Investment | 0 | 0 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 0 | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 0 | 0 | ||
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | ||
Loans with an allowance recorded, Recorded Investment | 0 | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | ||
Loans with an allowance recorded, Related Allowance | 0 | |||
Loans with an allowance recorded, Average Recorded Investment | 0 | 0 | ||
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | ||
Total, Recorded Investment | 0 | 0 | ||
Total, Unpaid Principal Balance | 0 | 0 | ||
Total, Related Allowance | 0 | |||
Total, Average Recorded Investment | 0 | 0 | ||
Total, Interest Income Recognized | 0 | 0 | ||
Commercial Construction | ||||
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Recorded Investment | 0 | 0 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 0 | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 0 | 0 | ||
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | ||
Loans with an allowance recorded, Recorded Investment | 0 | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | ||
Loans with an allowance recorded, Related Allowance | 0 | 0 | ||
Loans with an allowance recorded, Average Recorded Investment | 0 | 0 | ||
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | ||
Total, Recorded Investment | 0 | 0 | ||
Total, Unpaid Principal Balance | 0 | 0 | ||
Total, Related Allowance | 0 | 0 | ||
Total, Average Recorded Investment | 0 | 0 | ||
Total, Interest Income Recognized | 0 | 0 | ||
Land and Land Development [Member] | ||||
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Recorded Investment | 0 | 2 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 0 | 1 | ||
Loans with no related allowance recorded, Related Allowance | 0 | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 1 | 1 | 6 | |
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | ||
Loans with an allowance recorded, Recorded Investment | 0 | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | ||
Loans with an allowance recorded, Related Allowance | 0 | 0 | ||
Loans with an allowance recorded, Average Recorded Investment | 0 | 0 | ||
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | ||
Total, Recorded Investment | 0 | 2 | ||
Total, Unpaid Principal Balance | 0 | 1 | ||
Total, Related Allowance | 0 | 0 | ||
Total, Average Recorded Investment | 1 | 1 | 6 | |
Total, Interest Income Recognized | 0 | 0 | ||
Commercial Business [Member] | ||||
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Recorded Investment | 1,476 | 1,670 | 105 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 1,559 | 1,675 | 106 | |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 1,664 | 745 | 183 | |
Loans with no related allowance recorded, Interest Income Recognized | 3 | 1 | 7 | |
Loans with an allowance recorded, Recorded Investment | 0 | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | ||
Loans with an allowance recorded, Related Allowance | 0 | 0 | ||
Loans with an allowance recorded, Average Recorded Investment | 1 | 328 | 10 | |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | ||
Total, Recorded Investment | 1,476 | 1,670 | 105 | |
Total, Unpaid Principal Balance | 1,559 | 1,675 | 106 | |
Total, Related Allowance | 0 | 0 | ||
Total, Average Recorded Investment | 1,665 | 1,073 | 193 | |
Total, Interest Income Recognized | 3 | 1 | 7 | |
SBA commercial business | ||||
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Recorded Investment | 1,278 | 322 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 1,534 | 416 | ||
Loans with no related allowance recorded, Average Recorded Investment | 820 | 250 | 32 | |
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | ||
Loans with an allowance recorded, Recorded Investment | 18 | 373 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 21 | 399 | ||
Loans with an allowance recorded, Related Allowance | 18 | 47 | ||
Loans with an allowance recorded, Average Recorded Investment | 248 | 143 | 18 | |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | ||
Total, Recorded Investment | 1,296 | 695 | ||
Total, Unpaid Principal Balance | 1,555 | 815 | ||
Total, Related Allowance | 18 | 47 | ||
Total, Average Recorded Investment | 1,068 | 393 | 50 | |
Total, Interest Income Recognized | 0 | 0 | ||
Consumer [Member] | ||||
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Recorded Investment | 103 | 61 | 78 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 97 | 63 | 81 | |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 90 | 72 | 107 | |
Loans with no related allowance recorded, Interest Income Recognized | 2 | 3 | 4 | |
Loans with an allowance recorded, Recorded Investment | 145 | 138 | 156 | |
Loans with an allowance recorded, Unpaid Principal Balance | 144 | 138 | 155 | |
Loans with an allowance recorded, Related Allowance | 1 | 23 | ||
Loans with an allowance recorded, Average Recorded Investment | 169 | 154 | 157 | |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | ||
Total, Recorded Investment | 248 | 199 | 234 | |
Total, Unpaid Principal Balance | 241 | 201 | 236 | |
Total, Related Allowance | 1 | 23 | ||
Total, Average Recorded Investment | 259 | 226 | 264 | |
Total, Interest Income Recognized | $ 2 | $ 3 | 4 | |
Construction [Member] | ||||
Loans and Allowance for Loan Losses | ||||
Loans with no related allowance recorded, Related Allowance | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Nonperforming Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | $ 15,000 | $ 13,615 |
Loans 90+ Days Past Due Still Accruing | 472 | 0 |
Total Nonperforming Loans | 15,472 | 13,615 |
Residential real estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 1,894 | 2,797 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 1,894 | 2,797 |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 599 | 685 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 599 | 685 |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | 0 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 0 | 0 |
SBA commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 9,153 | 6,927 |
Loans 90+ Days Past Due Still Accruing | 472 | 0 |
Total Nonperforming Loans | 9,625 | 6,927 |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 482 | 698 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 482 | 698 |
Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | 0 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 0 | 0 |
Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | 0 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 0 | 0 |
Land and Land Development [Member] | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | 2 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 0 | 2 |
Commercial Business [Member] | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 1,370 | 1,668 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 1,370 | 1,668 |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 1,296 | 695 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 1,296 | 695 |
Consumer [Member] | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 206 | 143 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | $ 206 | $ 143 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Aging of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Loans and Allowance for Loan Losses | ||
Total Loans | $ 1,094,635 | $ 1,111,674 |
Recorded investment in loans | 1,094,635 | 1,111,674 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 869 | 2,471 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 684 | 539 |
Financial Asset, Not Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 1,086,225 | 1,104,146 |
Financial Asset, Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 8,410 | 7,528 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 6,857 | 4,518 |
Residential real estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 242,270 | 192,269 |
Recorded investment in loans | 242,270 | 192,269 |
Residential real estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 818 | 1,693 |
Residential real estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 352 | 480 |
Residential real estate [Member] | Financial Asset, Not Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 240,753 | 188,465 |
Recorded investment in loans | 240,753 | 188,465 |
Residential real estate [Member] | Financial Asset, Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 1,517 | 3,804 |
Recorded investment in loans | 1,517 | 3,804 |
Residential real estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 347 | 1,631 |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 149,955 | 142,137 |
Recorded investment in loans | 149,955 | 142,137 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 109 |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial real estate | Financial Asset, Not Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 149,356 | 141,343 |
Recorded investment in loans | 149,356 | 141,343 |
Commercial real estate | Financial Asset, Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 599 | 794 |
Recorded investment in loans | 599 | 794 |
Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 599 | 685 |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 404,938 | 335,600 |
Recorded investment in loans | 404,938 | 335,600 |
Single tenant net lease | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Single tenant net lease | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Single tenant net lease | Financial Asset, Not Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 404,938 | 335,600 |
Recorded investment in loans | 404,938 | 335,600 |
Single tenant net lease | Financial Asset, Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 0 | 0 |
Recorded investment in loans | 0 | 0 |
Single tenant net lease | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
SBA commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 64,386 | 56,977 |
Recorded investment in loans | 64,386 | 56,977 |
SBA commercial real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
SBA commercial real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 208 | 0 |
SBA commercial real estate | Financial Asset, Not Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 59,188 | 55,103 |
Recorded investment in loans | 59,188 | 55,103 |
SBA commercial real estate | Financial Asset, Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 5,198 | 1,874 |
Recorded investment in loans | 5,198 | 1,874 |
SBA commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 4,990 | 1,874 |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 40,353 | 42,470 |
Recorded investment in loans | 40,353 | 42,470 |
Multifamily | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Multifamily | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Multifamily | Financial Asset, Not Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 40,353 | 42,470 |
Recorded investment in loans | 40,353 | 42,470 |
Multifamily | Financial Asset, Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 0 | 0 |
Recorded investment in loans | 0 | 0 |
Multifamily | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 8,295 | 9,358 |
Recorded investment in loans | 8,295 | 9,358 |
Residential Construction | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Residential Construction | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Residential Construction | Financial Asset, Not Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 8,295 | 9,358 |
Recorded investment in loans | 8,295 | 9,358 |
Residential Construction | Financial Asset, Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 0 | 0 |
Recorded investment in loans | 0 | 0 |
Residential Construction | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 2,695 | 6,939 |
Recorded investment in loans | 2,695 | 6,939 |
Commercial Construction | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial Construction | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial Construction | Financial Asset, Not Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 2,695 | 6,939 |
Recorded investment in loans | 2,695 | 6,939 |
Commercial Construction | Financial Asset, Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 0 | 0 |
Recorded investment in loans | 0 | 0 |
Commercial Construction | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Land and Land Development [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 10,229 | 9,412 |
Recorded investment in loans | 10,229 | 9,412 |
Land and Land Development [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Land and Land Development [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Land and Land Development [Member] | Financial Asset, Not Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 10,229 | 9,410 |
Recorded investment in loans | 10,229 | 9,410 |
Land and Land Development [Member] | Financial Asset, Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 0 | 2 |
Recorded investment in loans | 0 | 2 |
Land and Land Development [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 2 |
Commercial Business [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 60,103 | 60,742 |
Recorded investment in loans | 60,103 | 60,742 |
Commercial Business [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 63 |
Commercial Business [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial Business [Member] | Financial Asset, Not Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 60,100 | 60,679 |
Recorded investment in loans | 60,100 | 60,679 |
Commercial Business [Member] | Financial Asset, Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 3 | 63 |
Recorded investment in loans | 3 | 63 |
Commercial Business [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 3 | 0 |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 80,771 | 205,042 |
Recorded investment in loans | 80,771 | 205,042 |
SBA commercial business | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 18 | 373 |
SBA commercial business | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 104 | 0 |
SBA commercial business | Financial Asset, Not Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 79,801 | 204,347 |
Recorded investment in loans | 79,801 | 204,347 |
SBA commercial business | Financial Asset, Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 970 | 695 |
Recorded investment in loans | 970 | 695 |
SBA commercial business | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 848 | 322 |
Consumer [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 30,640 | 50,728 |
Recorded investment in loans | 30,640 | 50,728 |
Consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 33 | 233 |
Consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 20 | 59 |
Consumer [Member] | Financial Asset, Not Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 30,517 | 50,432 |
Recorded investment in loans | 30,517 | 50,432 |
Consumer [Member] | Financial Asset, Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 123 | 296 |
Recorded investment in loans | 123 | 296 |
Consumer [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | $ 70 | $ 4 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES - Recorded Investment in Loans by Risk Category (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | $ 1,094,635 | $ 1,111,674 |
Pass [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,053,774 | 1,073,581 |
Special Mention [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 16,316 | 11,159 |
Substandard [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 21,102 | 26,807 |
Doubtful [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 3,443 | 127 |
Loss [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Residential real estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 242,270 | 192,269 |
Residential real estate [Member] | Pass [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 240,078 | 188,707 |
Residential real estate [Member] | Special Mention [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Residential real estate [Member] | Substandard [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 2,018 | 3,435 |
Residential real estate [Member] | Doubtful [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 174 | 127 |
Residential real estate [Member] | Loss [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 149,955 | 142,137 |
Commercial real estate | Pass [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 143,031 | 133,685 |
Commercial real estate | Special Mention [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 4,059 | 4,112 |
Commercial real estate | Substandard [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 2,865 | 4,340 |
Commercial real estate | Doubtful [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial real estate | Loss [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 404,938 | 335,600 |
Single tenant net lease | Pass [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 404,938 | 335,600 |
Single tenant net lease | Special Mention [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Single tenant net lease | Substandard [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Single tenant net lease | Doubtful [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Single tenant net lease | Loss [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
SBA commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 64,386 | 56,977 |
SBA commercial real estate | Pass [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 45,465 | 38,124 |
SBA commercial real estate | Special Mention [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 5,343 | 6,518 |
SBA commercial real estate | Substandard [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 10,339 | 12,335 |
SBA commercial real estate | Doubtful [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 3,239 | |
SBA commercial real estate | Loss [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 40,353 | 42,470 |
Multifamily | Pass [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 39,871 | 41,772 |
Multifamily | Special Mention [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Multifamily | Substandard [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 482 | 698 |
Multifamily | Doubtful [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Multifamily | Loss [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 8,295 | 9,358 |
Residential Construction | Pass [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 8,295 | 9,358 |
Residential Construction | Special Mention [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Residential Construction | Substandard [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Residential Construction | Doubtful [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Residential Construction | Loss [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 2,695 | 6,939 |
Commercial Construction | Pass [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 2,695 | 6,939 |
Commercial Construction | Special Mention [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Construction | Substandard [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Construction | Doubtful [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Construction | Loss [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Land and Land Development [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 10,229 | 9,412 |
Land and Land Development [Member] | Pass [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 10,229 | 9,410 |
Land and Land Development [Member] | Special Mention [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Land and Land Development [Member] | Substandard [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | 2 |
Land and Land Development [Member] | Doubtful [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Land and Land Development [Member] | Loss [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Business [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 60,103 | 60,742 |
Commercial Business [Member] | Pass [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 58,583 | 58,707 |
Commercial Business [Member] | Special Mention [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | 235 |
Commercial Business [Member] | Substandard [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,520 | 1,800 |
Commercial Business [Member] | Doubtful [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Business [Member] | Loss [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 80,771 | 205,042 |
SBA commercial business | Pass [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 70,019 | 200,578 |
SBA commercial business | Special Mention [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 6,914 | 294 |
SBA commercial business | Substandard [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 3,808 | 4,170 |
SBA commercial business | Doubtful [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 30 | |
SBA commercial business | Loss [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Consumer [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 30,640 | 50,728 |
Consumer [Member] | Pass [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 30,570 | 50,701 |
Consumer [Member] | Special Mention [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Consumer [Member] | Substandard [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 70 | $ 27 |
Consumer [Member] | Doubtful [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Consumer [Member] | Loss [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES - Recorded Investment in Troubled Debt Restructurings by Class of Loan and Accrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Financing Receivable, Modifications [Line Items] | ||
Accruing | $ 1,743 | $ 3,069 |
Nonaccrual | 5,554 | 6,794 |
Total | 7,297 | 9,863 |
Residential real estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 1,173 | 2,562 |
Nonaccrual | 0 | 116 |
Total | 1,173 | 2,678 |
Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 422 | 449 |
Nonaccrual | 465 | 512 |
Total | 887 | 961 |
SBA commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccrual | 3,240 | 3,800 |
Total | 3,240 | 3,800 |
Multifamily | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccrual | 482 | 698 |
Total | 482 | 698 |
Commercial Business [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 106 | 2 |
Nonaccrual | 1,367 | 1,668 |
Total | 1,473 | 1,670 |
Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 42 | 56 |
Nonaccrual | 0 | 0 |
Total | $ 42 | $ 56 |
LOANS AND ALLOWANCE FOR LOAN_12
LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($)item | |
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ||
Number of Loans | item | 1 | 13 |
Pre-Modification Principal Balance | $ 126 | $ 7,368 |
Post-Modification Principal Balance | $ 126 | $ 7,369 |
Residential real estate [Member] | ||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ||
Number of Loans | item | 1 | |
Pre-Modification Principal Balance | $ 1,099 | |
Post-Modification Principal Balance | $ 1,100 | |
Commercial real estate | ||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ||
Number of Loans | item | 1 | |
Pre-Modification Principal Balance | $ 3,832 | |
Post-Modification Principal Balance | $ 3,832 | |
Commercial Business [Member] | ||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ||
Number of Loans | item | 1 | 2 |
Pre-Modification Principal Balance | $ 126 | $ 700 |
Post-Modification Principal Balance | $ 126 | $ 700 |
Consumer [Member] | ||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | ||
Number of Loans | item | 9 | |
Pre-Modification Principal Balance | $ 1,737 | |
Post-Modification Principal Balance | $ 1,737 |
LOANS AND ALLOWANCE FOR LOAN_13
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loan Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |||
Balance, beginning of period | $ 3,748 | $ 3,030 | $ 2,405 |
Servicing rights capitalized | 1,980 | 1,450 | 1,334 |
Amortization | (1,215) | (848) | (596) |
Direct write-offs | (92) | (142) | |
Change in valuation allowance | 26 | 116 | 29 |
Balance, end of period | $ 4,447 | $ 3,748 | $ 3,030 |
LOANS AND ALLOWANCE FOR LOAN_14
LOANS AND ALLOWANCE FOR LOAN LOSSES - Mortgage Servicing Rights (Details) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Mortgage Servicing Rights [Member] | ||
Discount rate | 9.25% | |
Maximum [Member] | ||
Discount rate | 22.34% | 19.86% |
Prepayment rate | 24.51% | 26.68% |
Maximum [Member] | Mortgage Servicing Rights [Member] | ||
Discount rate | 10.00% | |
Prepayment rate | 43.27% | 86.98% |
Minimum [Member] | ||
Discount rate | 4.57% | 3.58% |
Prepayment rate | 8.30% | 8.69% |
Minimum [Member] | Mortgage Servicing Rights [Member] | ||
Discount rate | 8.50% | |
Prepayment rate | 6.04% | 2.99% |
Weighted Average [Member] | ||
Discount rate | 9.97% | 8.36% |
Prepayment rate | 15.98% | 17.46% |
Weighted Average [Member] | Mortgage Servicing Rights [Member] | ||
Discount rate | 8.51% | |
Prepayment rate | 10.00% | 18.08% |
LOANS AND ALLOWANCE FOR LOAN_15
LOANS AND ALLOWANCE FOR LOAN LOSSES - Mortgage Servicing Rights at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Balance, beginning of period | $ 3,748 | $ 3,030 | $ 2,405 |
Servicing rights capitalized | 1,980 | 1,450 | 1,334 |
Changes in fair value related to: | |||
Balance, end of period | 4,447 | 3,748 | 3,030 |
Mortgage Servicing Rights [Member] | |||
Balance, beginning of period | 21,703 | 934 | 0 |
Servicing rights capitalized | 36,679 | 24,058 | 940 |
Changes in fair value related to: | |||
Loan repayments | (9,555) | (1,542) | (6) |
Changes in valuation model inputs or assumptions | 752 | (1,747) | 0 |
Balance, end of period | $ 49,579 | $ 21,703 | $ 934 |
LOANS AND ALLOWANCE FOR LOAN_16
LOANS AND ALLOWANCE FOR LOAN LOSSES - SBA Loan Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |||
Balance, beginning of period | $ 32 | $ 148 | $ 177 |
Additions (reductions) charged to earnings | 66 | (116) | 113 |
Write-downs charged against allowance | (92) | 0 | (142) |
Balance, end of period | $ 6 | $ 32 | $ 148 |
LOANS AND ALLOWANCE FOR LOAN_17
LOANS AND ALLOWANCE FOR LOAN LOSSES - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($)item | |
Loans and Allowance for Loan Losses | |||||||||||||||
Number of Loans | item | 1 | 13 | |||||||||||||
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | |||||||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | $ 1,124,000 | 1,170,000 | 848,000 | ||||||||||||
Provision for loan losses | $ 8,000 | $ (2,730,000) | $ 287,000 | $ 668,000 | 2,772,000 | $ 2,980,000 | $ 1,705,000 | $ 505,000 | 471,000 | $ 337,000 | $ 340,000 | $ 315,000 | (1,767,000) | 7,962,000 | 1,463,000 |
Impaired Financing Receivable, Unpaid Principal Balance | 18,869,000 | 17,713,000 | 13,361,000 | 18,869,000 | 17,713,000 | 13,361,000 | |||||||||
Escrow Balances Maintained with Foregoing Loan Servicing and Other Liabilities | 19,300,000 | 19,300,000 | |||||||||||||
Net servicing income | 2,171,000 | 1,806,000 | $ 1,245,000 | ||||||||||||
Commercial real estate | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Number of Loans | item | 1 | ||||||||||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 0 | 102,000 | |||||||||||||
Impaired Financing Receivable, Unpaid Principal Balance | 1,092,000 | 1,185,000 | 5,264,000 | 1,092,000 | 1,185,000 | $ 5,264,000 | |||||||||
Residential real estate [Member] | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Number of Loans | item | 1 | ||||||||||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 11,000 | 36,000 | $ 21,000 | ||||||||||||
Impaired Financing Receivable, Unpaid Principal Balance | 3,616,000 | 5,872,000 | 4,974,000 | 3,616,000 | $ 5,872,000 | $ 4,974,000 | |||||||||
Commercial Business [Member] | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Number of Loans | item | 1 | 2 | |||||||||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 0 | $ 38,000 | $ 8,000 | ||||||||||||
Impaired Financing Receivable, Unpaid Principal Balance | 1,559,000 | 1,675,000 | 106,000 | 1,559,000 | 1,675,000 | 106,000 | |||||||||
Bank Servicing [Member] | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 88,000 | 54,000 | 41,000 | ||||||||||||
Banking [Member] | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 2,259,000 | 1,860,000 | 1,286,000 | ||||||||||||
SBA Lending Segment [Member] | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Provision for loan losses | 15,000 | 3,326,000 | 1,705,000 | ||||||||||||
SBA | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Impaired Financing Receivable, Unpaid Principal Balance | 244,800,000 | 209,100,000 | 165,000,000 | 244,800,000 | 209,100,000 | 165,000,000 | |||||||||
Troubled Debt Restructuring [Member] | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Loans and Leases Receivable, Allowance, Covered | 538,000 | 538,000 | |||||||||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | 457,000 | ||||||||||||||
Provision for loan losses | 538,000 | 0 | |||||||||||||
Payment extensions or loan forbearance agreements balance amount | 175,000,000,000 | 175,000,000,000 | |||||||||||||
Troubled Debt Restructuring, Debtor, Subsequent Periods, Contingent Payments, Amount | $ 114,000 | 114,000 | |||||||||||||
Mortgage Servicing Rights [Member] | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Impaired Financing Receivable, Unpaid Principal Balance | 4,640,000,000 | $ 2,260,000,000 | 4,640,000,000 | 2,260,000,000 | |||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 6,500,000 | $ 621,000 | $ 30,000 | ||||||||||||
Escrow Balances Maintained with Foregoing Loan Servicing and Other Liabilities | $ 30,600,000 | $ 30,600,000 |
INVESTMENT IN HISTORIC TAX CR_2
INVESTMENT IN HISTORIC TAX CREDIT ENTITY Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Oct. 15, 2014 | Mar. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
INVESTMENT IN HISTORIC TAX CREDIT ENTITY | |||||
Other Assets | $ 4,200,000 | $ 21,550,000 | $ 30,126,000 | ||
Percentage Of Received Equity Interest | 99.00% | ||||
Percentage Of Receive Operating Profit And Losses | 99.00% | ||||
Investment Credit Available To Be Estimated | $ 4,700,000 | ||||
Historical Tax Credit On Investment | $ 5,000,000 | ||||
Increase In Equity Investment | $ 4,500,000 | ||||
Investment Tax Credit Percentage | 90.00% | ||||
Income Related To Distributions From Historic Tax Credit Entity | $ 32,000 | $ 426,000 | $ 210,000 |
PREMISES AND EQUIPMENT - Premis
PREMISES AND EQUIPMENT - Premises And Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 38,059 | $ 33,292 | |
Less: accumulated depreciation | (10,390) | (8,880) | |
Property, Plant and Equipment, Net, Total | 27,669 | 24,412 | |
Property, Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 2,023 | 1,576 | $ 1,305 |
Land and land improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 4,561 | 4,071 | |
Office buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 23,826 | 20,062 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 66 | 66 | |
Furniture, fixtures and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 9,206 | 8,036 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 400 | $ 1,057 |
PREMISES AND EQUIPMENT - Additi
PREMISES AND EQUIPMENT - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||||||||||||||
Lease expiration term | 10 years | ||||||||||||||
Sale leaseback transaction, deferred gain, remaining balance | $ 218,000 | $ 218,000 | |||||||||||||
Gain realized on the sale of the property | $ 471,000 | ||||||||||||||
Noninterest income | $ 16,495,000 | $ 18,785,000 | $ 38,973,000 | $ 46,183,000 | $ 57,024,000 | $ 46,962,000 | $ 11,133,000 | $ 18,232,000 | $ 18,340,000 | $ 12,644,000 | $ 7,089,000 | $ 5,781,000 | 120,436,000 | $ 133,351,000 | $ 43,854,000 |
Bank [Member] | |||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||
Gain realized on the sale of the property | 307,000 | ||||||||||||||
Noninterest income | $ 164,000 |
OTHER REAL ESTATE OWNED - Other
OTHER REAL ESTATE OWNED - Other Real Estate Roll Forward (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
REAL ESTATE DEVELOPMENT AND CONSTRUCTION | |||
Balance as of October 1 | $ 1,728 | $ 1,893 | $ 103 |
Transfers from loans to other real estate owned | 426 | 0 | 114 |
Transfers from premises and equipment to REO | 0 | 0 | 1,893 |
Sales | (426) | (165) | (217) |
Balance as of September 30 | $ 1,728 | $ 1,728 | $ 1,893 |
OTHER REAL ESTATE OWNED - Sched
OTHER REAL ESTATE OWNED - Schedule Of (Gain) Loss On Other Real Estate Owned (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
REAL ESTATE DEVELOPMENT AND CONSTRUCTION | |||
Net gain on sales | $ (74) | $ (16) | $ (78) |
Operating expenses, net of rental income | 10 | 15 | 21 |
Profit (Loss) from Real Estate Operations | $ (64) | $ (1) | $ (57) |
OTHER REAL ESTATE OWNED - Addit
OTHER REAL ESTATE OWNED - Additional Information (Detail) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Residential real estate [Member] | ||
Real Estate Acquired Through Foreclosure | $ 124,000 | $ 1,300,000 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES (Changes In The Carrying Amount Of Goodwill) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
GOODWILL AND OTHER INTANGIBLES | |||
Beginning balance | $ 9,848 | $ 9,848 | $ 9,848 |
Acquisition of Dearmin/FNBO | 0 | 0 | 0 |
Ending balance | $ 9,848 | $ 9,848 | $ 9,848 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES (Summary Of Other Intangible Assets) (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Less accumulated amortization | $ (3,806) | $ (3,592) |
Ending balance | 988 | 1,202 |
Core deposit intangible acquired in Community First acquisition [Member] | ||
Core deposit intangible acquired | 2,741 | 2,741 |
Core deposit intangible acquired in First Federal branch acquisition [Member] | ||
Core deposit intangible acquired | 566 | 566 |
Core deposit intangible acquired in Dearmin FNBO acquisition [Member] | ||
Core deposit intangible acquired | $ 1,487 | $ 1,487 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES (Schedule Of Intangible Assets Amortization Expenses) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
GOODWILL AND OTHER INTANGIBLES | |||
Amortization expense | $ 214 | $ 214 | $ 312 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLES (Estimated Amortization Expense For The Core Deposit Intangibles) (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
GOODWILL AND OTHER INTANGIBLES | |
2022 | $ 214 |
2023 | 214 |
2024 | 163 |
2025 | 163 |
2026 | 163 |
2027 and thereafter | 71 |
Total | $ 988 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLES (Additional Information) (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
GOODWILL AND OTHER INTANGIBLES | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
DEPOSITS | ||
Noninterest-bearing demand deposits | $ 291,039 | $ 242,673 |
NOW accounts | 315,169 | 218,581 |
Money market accounts | 222,972 | 143,867 |
Savings accounts | 162,033 | 142,609 |
Retail time deposits | 136,309 | 168,276 |
Brokered time deposits | 70,058 | 54,688 |
Reciprocal time deposits | 30,000 | 77,382 |
Total deposits | $ 1,227,580 | $ 1,048,076 |
DEPOSITS (Scheduled Maturities
DEPOSITS (Scheduled Maturities Of Certificates Of Deposit) (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
OTHER BORROWINGS | |
2022 | $ 189,007 |
2023 | 16,448 |
2024 | 11,740 |
2025 | 7,213 |
2026 | 11,959 |
Total | $ 236,367 |
DEPOSITS (Additional Informatio
DEPOSITS (Additional Information) (Detail) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
OTHER BORROWINGS | ||
Federal Deposit Insurance Corporation Insurance Limit | $ 250,000 | |
Time Deposits, at or Above FDIC Insurance Limit | 29,800,000 | $ 33,600,000 |
Related Party Deposit Liabilities | $ 14,700,000 | $ 9,400,000 |
FEDERAL FUNDS PURCHASED (Additi
FEDERAL FUNDS PURCHASED (Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Percentage Of Equity Capital | 25.00% | ||
Federal Funds Purchased Expiration Date1 | Jun. 30, 2021 | ||
Federal Funds Outstanding | $ 0 | $ 0 | |
Federal Fund Purchased | |||
Federal Funds Purchased | $ 20 | ||
Discretionary Line Of Credit Facility [Member] | |||
Federal Funds Purchased | 22 | ||
Line of Credit [Member] | |||
Federal Funds Purchased | 15 | ||
Federal Funds Outstanding | $ 0 | $ 0 |
REPURCHASE AGREEMENTS (Borrowin
REPURCHASE AGREEMENTS (Borrowings Under Retail Repurchase Agreements) (Detail) - Retail Repurchase Agreements [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Weighted average interest rate during the year | 0.00% | 0.00% | 0.25% |
Average balance during the year | $ 0 | $ 0 | $ 1,075 |
Maximum month-end balance during the year | $ 0 | $ 0 | $ 1,354 |
REPURCHASE AGREEMENTS (Addition
REPURCHASE AGREEMENTS (Additional Information) (Detail) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Available-for-sale Securities [Member] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | $ 0 | $ 0 |
BORROWINGS FROM FEDERAL HOME _3
BORROWINGS FROM FEDERAL HOME LOAN BANK (Borrowings From The FHLB) (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
BORROWINGS FROM FEDERAL HOME LOAN BANK | ||
2021 Weighted Average Rate | 0.00% | 1.26% |
2022 Weighted Average Rate | 2.01% | 2.01% |
2024 Weighted Average Rate | 2.02% | 2.02% |
2025 Weighted Average Rate | 1.51% | 1.51% |
2026 and beyond Weighted Average Rate | 0.81% | 0.81% |
2021 Amount | $ 0 | $ 40,000 |
2022 Amount | 10,000 | 10,000 |
2024 Amount | 50,000 | 50,000 |
2025 Amount | 10,000 | 10,000 |
2026 and beyond Amount | 180,000 | 180,000 |
Total advances | $ 250,000 | $ 290,000 |
Line of credit balance (Weighted Average Rate) | 0.43% | 0.50% |
Line of credit facility maximum amount outstanding | $ 0 | $ 20,858 |
Advances from Federal Home Loan Banks, Total | $ 250,000 | $ 310,858 |
BORROWINGS FROM FEDERAL HOME _4
BORROWINGS FROM FEDERAL HOME LOAN BANK (Additional Information) (Detail) - USD ($) | Sep. 30, 2021 | Aug. 14, 2018 | May 31, 2017 | Jun. 19, 2014 |
Security Owned and Pledged as Collateral, Fair Value | $ 2,100,000 | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 2,200,000 | |||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | |||
Commercial real estate | ||||
Loans Pledged as Collateral | 477,100,000 | |||
Residential Mortgage Loans [Member] | ||||
Mortgage Collateral Pledged For Borrowings | 280,400,000 | |||
Securities Investment [Member] | ||||
Security Owned and Pledged as Collateral, Fair Value | $ 50,000,000 | $ 3,300,000 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | |||
Investment Type Categorizations [Member] | ||||
Security Owned and Pledged as Collateral, Fair Value | 1,900,000 | |||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 |
OTHER BORROWINGS - Additional I
OTHER BORROWINGS - Additional Information (Detail) - USD ($) | Sep. 20, 2018 | Sep. 30, 2021 | Sep. 30, 2020 |
Subordinated Debt | $ 20,000,000 | ||
Subordinated Borrowing, Interest Rate | 6.02% | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 174,800,000 | ||
Line of Credit Facility, Interest Rate During Period | 0.35% | ||
Borrowings | $ 0 | $ 174,834,000 | |
LIBOR | |||
Subordinated borrowing, floating interest rate | 3.10% | ||
Subordinated Debt. | |||
Unamortized Debt Issuance Expense | $ 135,000 | $ 203,000 |
DEFERRED COMPENSATION PLANS - D
DEFERRED COMPENSATION PLANS - Deferred Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Officer | |||
Deferred compensation expense (income) | $ 129 | $ (4) | $ 80 |
DEFERRED COMPENSATION PLANS -_2
DEFERRED COMPENSATION PLANS - Deferred Directors Fees Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Director | |||
Deferred directors' fee expense | $ 166 | $ 187 | $ 263 |
DEFERRED COMPENSATION PLANS - A
DEFERRED COMPENSATION PLANS - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Deferred Compensation Arrangement with Individual, Description | The Company accrues interest on the deferred obligation at an annual rate equal to the prime rate for the immediately preceding calendar quarter plus 2%, but in no event at a rate in excess of 8% | |
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 336,000 | $ 208,000 |
Deferred compensation arrangement, term | 10 years | |
Director | ||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 1,500,000 | $ 1,500,000 |
BENEFIT PLANS - Contributions T
BENEFIT PLANS - Contributions To The Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
BENEFIT PLANS | |||
Company contributions to the plan | $ 1,633 | $ 1,420 | $ 762 |
BENEFIT PLANS - Compensation Ex
BENEFIT PLANS - Compensation Expense Recognized (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
BENEFIT PLANS | |||
Compensation expense | $ 0 | $ 0 | $ 0 |
BENEFIT PLANS - Additional Info
BENEFIT PLANS - Additional Information (Detail) | Sep. 15, 2021 | Oct. 06, 2008$ / sharesshares | Sep. 30, 2021shares | Sep. 30, 2020shares |
BENEFIT PLANS | ||||
Employee Stock Ownership Plan (ESOP), Shares in ESOP | shares | 610,089 | 335,958 | 358,962 | |
Employee Stock Ownership Plan (ESOP), Weighted Average Purchase Price of Shares Purchased | $ / shares | $ 3.33 | |||
Stock split ratio | 0.33 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
STOCK-BASED COMPENSATION PLANS | |||
Stock option expense | $ 92 | $ 86 | $ 72 |
Restricted stock expense | $ 184 | $ 193 | $ 173 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Fair Value Of Options Granted (Details) - $ / shares | 12 Months Ended | 36 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2021 | |
STOCK-BASED COMPENSATION PLANS | ||||
Expected dividend yield | 1.75% | |||
Risk-free interest rate | 2.13% | |||
Expected volatility | 14.60% | |||
Expected life of options | 7 years 6 months | 7 years 6 months | 7 years 6 months | |
Weighted average fair value at grant date | $ 6.13 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Stock Option Activity (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Number of Shares | |||
Outstanding at beginning of year | 205,209 | ||
Granted | 22,665 | ||
Exercised | (6,840) | (85,083) | (200,631) |
Forfeited or expired | (3,960) | ||
Outstanding at end of year | 217,074 | 205,209 | |
Vested and expected to vest | 217,074 | ||
Exercisable at end of year | 126,264 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of year | $ 16.04 | ||
Granted | 21.10 | ||
Exercised | 15.09 | ||
Forfeited or expired | 16.84 | ||
Outstanding at end of year | 16.58 | $ 16.04 | |
Vested and expected to vest | 16.58 | ||
Exercisable at end of year | $ 14.81 | ||
Weighted Average Remaining Contractual Term (Years) | |||
Exercisable at end of period | 6 years 2 months 12 days | ||
Vested and expected to vest | 6 years 2 months 12 days | ||
Exercisable at end of period | 5 years 6 months | ||
Aggregate Intrinsic Value | |||
Outstanding at end of period | $ 2,132,000 | ||
Vested and expected to vest | 2,132,000 | ||
Exercisable at end of period | $ 1,661,000 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS - Non vested Restricted Shares (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Number of Shares | |||
Nonvested | 32,424 | ||
Vested | (13,125) | (12,258) | (10,959) |
Forfeited | (1,500) | ||
Nonvested | 17,799 | 32,424 | |
Weighted Average Grant Date Fair Value | |||
Nonvested | $ 16.01 | ||
Vested | 14.92 | ||
Forfeited | 17.19 | ||
Nonvested | $ 16.72 | $ 16.01 |
STOCK-BASED COMPENSATION PLAN_6
STOCK-BASED COMPENSATION PLANS - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Vesting period | 5 years | |||
Terms of award | ten years | |||
Proceeds from exercise of stock options | $ 27,000 | $ 148,000 | $ 408,000 | |
Equity Incentive Plan 2016 [Member] | ||||
Aggregated number of shares in stock options | 264,000 | |||
Incentive stock options granted | $ 100,000 | |||
Common stock available under incentive plan | 4,560 | |||
2021 Plan | ||||
Aggregate number of shares of the Company's common stock available for issuance | 356,058 | |||
Number of shares granted | 0 | |||
2021 Plan | Maximum [Member] | ||||
Vesting period | 5 years | |||
2021 Plan | Minimum [Member] | ||||
Vesting period | 1 year | |||
Equity Incentive Plan 2010 [Member] | ||||
Common stock available under incentive plan | 0 | |||
Employee Stock Option [Member] | ||||
Unrecognized compensation expenses related to nonvested stock options | $ 108,000 | |||
Intrinsic value of stock options exercised | $ 50,000 | 1,400,000 | 2,600,000 | |
Vesting period | 3 years 21 days | |||
Proceeds from exercise of stock options | $ 27,000 | 148,000 | 408,000 | |
Stock Issued, Value, Stock Options Exercised, Net of Tax Benefit (Expense) | $ 10,000 | 134,000 | 237,000 | |
Employee Stock Option [Member] | Equity Incentive Plan 2016 [Member] | ||||
Aggregated number of shares in stock options | 198,000 | |||
Common stock available under incentive plan | 3,060 | |||
Restricted Stock [Member] | ||||
Unrecognized compensation expenses related to nonvested stock options | $ 138,000 | |||
Fair value of restricted shares | $ 277,000 | $ 271,000 | $ 216,000 | |
Restricted shares vested | 13,125 | 12,258 | 10,959 | |
weighted average period of compensation expense (in years) | 2 years 3 months | |||
Restricted Stock [Member] | Maximum [Member] | ||||
Vesting period | 5 years | |||
Restricted Stock [Member] | Minimum [Member] | ||||
Vesting period | 1 year | |||
Restricted Stock [Member] | Equity Incentive Plan 2016 [Member] | ||||
Aggregated number of shares in stock options | 66,000 | |||
Common stock available under incentive plan | 1,500 | |||
Restricted Stock [Member] | 2021 Plan | ||||
Number of restricted shares granted | 45,750 | |||
Stock options | 2021 Plan | ||||
Number of stock options granted | 137,250 |
INCOME TAXES - Consolidated Inc
INCOME TAXES - Consolidated Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
INCOME TAXES | |||||||||||||||
Current | $ 2,166 | $ 8,295 | $ 2,493 | ||||||||||||
Valuation allowance | 193 | 166 | |||||||||||||
Deferred | 7,865 | 4,173 | 436 | ||||||||||||
Income tax expense | $ 958 | $ 817 | $ 3,695 | $ 4,527 | $ 7,257 | $ 5,540 | $ (774) | $ 638 | $ 1,359 | $ 748 | $ 466 | $ 522 | $ 9,997 | $ 12,661 | $ 3,095 |
INCOME TAXES - Reconciliation O
INCOME TAXES - Reconciliation Of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
INCOME TAXES | |||||||||||||||
Provision at federal statutory rate | $ 8,308 | $ 9,816 | $ 4,219 | ||||||||||||
State income tax-net of federal tax benefit | 901 | 1,815 | 327 | ||||||||||||
Tax-exempt interest income | (1,045) | (962) | (890) | ||||||||||||
Bank owned life insurance | (194) | (154) | (111) | ||||||||||||
Captive insurance net premiums | (303) | (295) | (223) | ||||||||||||
Increase (decrease) in federal deferred tax valuation allowance | (193) | (166) | |||||||||||||
Nondeductible officer compensation | 2,238 | 2,373 | |||||||||||||
Other | 112 | (125) | (393) | ||||||||||||
Income tax expense | $ 958 | $ 817 | $ 3,695 | $ 4,527 | $ 7,257 | $ 5,540 | $ (774) | $ 638 | $ 1,359 | $ 748 | $ 466 | $ 522 | $ 9,997 | $ 12,661 | $ 3,095 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets And Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Deferred tax assets: | ||
Allowance for loan losses | $ 3,460 | $ 2,833 |
Operating lease liability | 1,430 | 1,882 |
Deferred compensation plans | 426 | 409 |
Equity incentive plans | 45 | 45 |
Other-than-temporary impairment loss on available for sale securities | 20 | 28 |
Interest on nonaccrual loans | 236 | 191 |
Loss on tax credit investments | 1,640 | 1,673 |
Deferred loan fees and costs, net | 0 | 166 |
Mark to market adjustments | 817 | |
Investment in subsidiary | 0 | 584 |
Other | 278 | 423 |
Gross deferred tax assets | 8,352 | 8,234 |
Valuation allowance | (1,648) | (1,681) |
Net deferred tax assets | 6,704 | 6,553 |
Deferred tax liabilities: | ||
Unrealized gain on securities available for sale | (2,366) | (2,980) |
Accumulated depreciation | (2,014) | (1,611) |
Operating lease right of use asset | (1,403) | (1,854) |
Installment sale | (360) | (378) |
Acquisition purchase accounting adjustments | (853) | (789) |
Mortgage servicing rights | (12,336) | (5,401) |
FHLB stock dividends | (85) | (88) |
Prepaid expenses | (829) | (609) |
Deferred loan fees and costs, net | (239) | |
Others | (96) | (67) |
Deferred tax liabilities | (20,581) | (13,777) |
Net deferred tax liability | $ (13,877) | $ (7,224) |
INCOME TAXES (Additional Inform
INCOME TAXES (Additional Information) (Detail) - USD ($) | 36 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Retained earnings - substantially restricted | $ 150,185,000 | $ 123,158,000 |
Deferred Tax Liabilities, Deferred Expense | $ 957,000 | 957,000 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |
Tax Credit Carryforward, Amount | $ 7,400,000 | |
Deferred Tax Assets, Valuation Allowance | 1,648,000 | 1,681,000 |
Cumulative Effect Period Of Adoption Adjustment Member | ||
Retained earnings - substantially restricted | $ 4,600,000 | $ 166,000 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Location of ROU asset | Other assets | ||
Lease liability | $ 5,936 | ||
Location of lease liability | us-gaap:OtherLiabilities | ||
Lease expense | $ 2,000 | $ 1,900 | $ 1,200 |
Operating lease ,Existence of option to extend | true | ||
Other Liabilities | |||
Lessee, Lease, Description [Line Items] | |||
Lease liability | $ 5,900 | 8,000 | |
Other Assets. | |||
Lessee, Lease, Description [Line Items] | |||
ROU asset | $ 5,800 | $ 7,900 | |
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term | 1 year | ||
Noncancelable Operating Leases Terms | 3 years | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term | 20 years | ||
Noncancelable Operating Leases Terms | 11 years |
LEASES - Components of lease ex
LEASES - Components of lease expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
LEASES | |||
Operating lease cost | $ 1,204 | $ 1,294 | $ 527 |
Short-term lease cost | 836 | 644 | 679 |
Total operating lease cost | $ 2,040 | $ 1,938 | $ 1,206 |
LEASES - Future minimum commitm
LEASES - Future minimum commitments due (Details) $ in Thousands | Sep. 30, 2021USD ($) |
LEASES | |
2022 | $ 668 |
2023 | 621 |
2024 | 562 |
2025 | 445 |
2026 | 245 |
Thereafter | 5,234 |
Total lease payments | 7,775 |
Less imputed interest | (1,839) |
Total | $ 5,936 |
LEASES - Lease term, discount r
LEASES - Lease term, discount rate and supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
LEASES | ||
Weighted-average remaining lease term (years) | 21 years 6 months | 18 years 6 months |
Weighted-average discount rate | 2.53% | 2.35% |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 1,253 | $ 1,221 |
ROU assets obtained in exchange for lease obligations: | ||
Operating leases | $ 2,038 | $ 9,083 |
LEASES - Lessor Tenants Under N
LEASES - Lessor Tenants Under Non cancellable (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2022 | $ 601 |
2023 | 557 |
2024 | 557 |
2025 | 442 |
2026 | 96 |
2027 and thereafter | 160 |
Total | $ 2,413 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Total commitments to extend credit | $ 192,806 | $ 130,679 |
Fixed Rate Residential Mortgage [Member] | ||
Total commitments to extend credit | 49,722 | 12,547 |
Adjustable Rate Residential Mortgage [Member] | ||
Total commitments to extend credit | 28,137 | 25,512 |
Guarantees of third-party revolving credit [Member] | ||
Total commitments to extend credit | 177 | 182 |
Home Equity [Member] | ||
Total commitments to extend credit | 35,995 | 33,567 |
Commercial Business [Member] | ||
Total commitments to extend credit | 47,452 | 40,136 |
Construction Loans In Process [Member] | ||
Total commitments to extend credit | $ 31,323 | $ 18,735 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Letters of Credit Outstanding, Amount | $ 8,300,000 | $ 8,800,000 |
Loss contingency for potential restitution | 450,000 | |
Fixed Rate Residential Mortgage [Member] | ||
Reserve for loan repurchases or indemnifications | 338,000 | 290,000 |
Provisions for loan repurchases or indemnifications | $ 595,000 | $ 614,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Notional Amount | $ 622,928 | $ 1,399,421 |
Asset Derivatives | 3,632 | 15,163 |
Liability Derivatives | 635 | 1,827 |
Interest rate lock commitments | ||
Notional Amount | 331,178 | 793,671 |
Asset Derivatives | 2,167 | 14,937 |
Liability Derivatives | 600 | |
Forward mortgage loan sale contracts | ||
Notional Amount | 291,750 | 605,750 |
Asset Derivatives | 1,465 | 226 |
Liability Derivatives | $ 35 | $ 1,827 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Income (loss) Related To Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income (loss) related to derivative financial instruments | $ (9,230) | $ (10,744) | $ (573) |
Interest rate lock commitments | |||
Income (loss) related to derivative financial instruments | (13,730) | 11,668 | 2,889 |
Forward mortgage loan sale contracts | |||
Income (loss) related to derivative financial instruments | $ 4,140 | $ (22,412) | $ (3,462) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Cash collateral derivative counterparty obligations | $ 2.4 | $ 3 |
FAIR VALUE MEASUREMENTS - Balan
FAIR VALUE MEASUREMENTS - Balances Of Financial Assets Measured At Fair Value On Recurring And Nonrecurring (Details) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | $ 206,681,000 | $ 201,965,000 | ||
Total loans held for sale | 167,813,000 | 208,493,000 | ||
SBA loan servicing rights | 4,447,000 | 3,748,000 | $ 3,030,000 | $ 2,405,000 |
Residential mortgage loans held for sale | 1,075,936,000 | 1,090,063,000 | ||
Derivative assets (included in other assets) | 3,632,000 | 15,163,000 | ||
Residential mortgage loan servicing rights, at fair value | 49,579,000 | 21,703,000 | ||
Derivative liabilities (included in other liabilities) | 635,000 | 1,827,000 | ||
Other real estate owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 1,728,000 | |||
Residential real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 124,000 | 1,300,000 | ||
Former bank premises | Other real estate owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 1,728,000 | |||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 206,681,000 | 201,965,000 | ||
Derivative assets (included in other assets) | 3,632,000 | |||
Equity securities (included in other assets) | 112,000 | 66,000 | ||
Residential mortgage loan servicing rights, at fair value | 49,579,000 | 21,703,000 | ||
Derivative liabilities (included in other liabilities) | 635,000 | 1,827,000 | ||
Fair Value, Measurements, Recurring | Agency Mortgage-Backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 8,384,000 | 7,952,000 | ||
Fair Value, Measurements, Recurring | Agency CMO | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 13,530,000 | 9,805,000 | ||
Fair Value, Measurements, Recurring | Privately-issued CMO | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 803,000 | 958,000 | ||
Fair Value, Measurements, Recurring | Privately-issued ABS | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 772,000 | 960,000 | ||
Fair Value, Measurements, Recurring | SBA certificates | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 2,138,000 | 694,000 | ||
Fair Value, Measurements, Recurring | Municipal bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 180,804,000 | 181,596,000 | ||
Fair Value, Measurements, Recurring | U.S. Treasury bills. | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 250,000 | |||
Fair Value, Measurements, Recurring | Residential mortgage loans held for sale - fair value option elected [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Residential mortgage loans held for sale | 167,813,000 | 208,493,000 | ||
Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 16,610,000 | 15,241,000 | ||
SBA loan servicing rights | 3,748,000 | |||
Total other real estate owned | 1,728,000 | |||
Fair Value, Measurements, Nonrecurring | Residential real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 3,067,000 | 5,329,000 | ||
Fair Value, Measurements, Nonrecurring | Commercial real estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 1,021,000 | 1,134,000 | ||
Fair Value, Measurements, Nonrecurring | SBA commercial real estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 9,039,000 | 5,561,000 | ||
Fair Value, Measurements, Nonrecurring | Multifamily | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 482,000 | 698,000 | ||
Fair Value, Measurements, Nonrecurring | Land and Land Development [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 2,000 | |||
Fair Value, Measurements, Nonrecurring | Commercial Business [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 1,476,000 | 1,670,000 | ||
Fair Value, Measurements, Nonrecurring | SBA commercial business | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 1,278,000 | 648,000 | ||
Fair Value, Measurements, Nonrecurring | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 247,000 | 199,000 | ||
Fair Value, Measurements, Nonrecurring | Small Business Administration Loan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loans held for sale | 24,107,000 | 22,119,000 | ||
SBA loan servicing rights | 4,447,000 | |||
Fair Value, Measurements, Nonrecurring | Residential mortgage loans held for sale [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 1,728,000 | |||
Fair Value, Measurements, Nonrecurring | Residential mortgage loans held for sale - fair value option elected [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loans held for sale | 54,913,000 | |||
Fair Value, Measurements, Nonrecurring | Single tenant net lease loans held for sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loans held for sale | 23,020,000 | |||
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
SBA loan servicing rights | 0 | |||
Residential mortgage loans held for sale | 0 | 0 | ||
Derivative assets (included in other assets) | 0 | 0 | ||
Equity securities (included in other assets) | 112,000 | 66,000 | ||
Derivative liabilities (included in other liabilities) | 0 | 0 | ||
Level 1 | Other real estate owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 0 | |||
Level 1 | Residential mortgage loans held for sale [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
SBA loan servicing rights | 0 | |||
Residential mortgage loans held for sale | 0 | 0 | ||
Level 1 | Former bank premises | Other real estate owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 0 | |||
Level 1 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Derivative assets (included in other assets) | 0 | |||
Equity securities (included in other assets) | 112,000 | 66,000 | ||
Residential mortgage loan servicing rights, at fair value | 0 | 0 | ||
Derivative liabilities (included in other liabilities) | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Recurring | Agency Mortgage-Backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Recurring | Agency CMO | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Recurring | Privately-issued CMO | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Recurring | Privately-issued ABS | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Recurring | SBA certificates | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Recurring | Municipal bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Recurring | U.S. Treasury bills. | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | |||
Level 1 | Fair Value, Measurements, Recurring | Residential mortgage loans held for sale - fair value option elected [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Residential mortgage loans held for sale | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
SBA loan servicing rights | 0 | |||
Total other real estate owned | 0 | |||
Level 1 | Fair Value, Measurements, Nonrecurring | Residential real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | Commercial real estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | SBA commercial real estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | Multifamily | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | Land and Land Development [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | |||
Level 1 | Fair Value, Measurements, Nonrecurring | Commercial Business [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | SBA commercial business | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | Small Business Administration Loan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loans held for sale | 0 | 0 | ||
SBA loan servicing rights | 0 | |||
Level 1 | Fair Value, Measurements, Nonrecurring | Residential mortgage loans held for sale [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 0 | |||
Level 1 | Fair Value, Measurements, Nonrecurring | Residential mortgage loans held for sale - fair value option elected [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loans held for sale | 0 | |||
Level 1 | Fair Value, Measurements, Nonrecurring | Single tenant net lease loans held for sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loans held for sale | 0 | |||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 206,681,000 | 201,965,000 | ||
SBA loan servicing rights | 0 | |||
Residential mortgage loans held for sale | 0 | 0 | ||
Derivative assets (included in other assets) | 1,465,000 | 226,000 | ||
Equity securities (included in other assets) | 0 | 0 | ||
Derivative liabilities (included in other liabilities) | 35,000 | 1,827,000 | ||
Level 2 | Other real estate owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 0 | |||
Level 2 | Residential mortgage loans held for sale [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
SBA loan servicing rights | 0 | |||
Residential mortgage loans held for sale | 167,813,000 | 263,519,000 | ||
Level 2 | Former bank premises | Other real estate owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 0 | |||
Level 2 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 206,681,000 | 201,965,000 | ||
Derivative assets (included in other assets) | 1,465,000 | |||
Equity securities (included in other assets) | 0 | 0 | ||
Residential mortgage loan servicing rights, at fair value | 0 | 0 | ||
Derivative liabilities (included in other liabilities) | 35,000 | 1,827,000 | ||
Level 2 | Fair Value, Measurements, Recurring | Agency Mortgage-Backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 8,384,000 | 7,952,000 | ||
Level 2 | Fair Value, Measurements, Recurring | Agency CMO | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 13,530,000 | 9,805,000 | ||
Level 2 | Fair Value, Measurements, Recurring | Privately-issued CMO | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 803,000 | 958,000 | ||
Level 2 | Fair Value, Measurements, Recurring | Privately-issued ABS | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 772,000 | 960,000 | ||
Level 2 | Fair Value, Measurements, Recurring | SBA certificates | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 2,138,000 | 694,000 | ||
Level 2 | Fair Value, Measurements, Recurring | Municipal bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 180,804,000 | 181,596,000 | ||
Level 2 | Fair Value, Measurements, Recurring | U.S. Treasury bills. | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 250,000 | |||
Level 2 | Fair Value, Measurements, Recurring | Residential mortgage loans held for sale - fair value option elected [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Residential mortgage loans held for sale | 167,813,000 | 208,493,000 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
SBA loan servicing rights | 0 | |||
Total other real estate owned | 0 | |||
Level 2 | Fair Value, Measurements, Nonrecurring | Residential real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | Commercial real estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | SBA commercial real estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | Multifamily | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | Land and Land Development [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | |||
Level 2 | Fair Value, Measurements, Nonrecurring | Commercial Business [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | SBA commercial business | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 0 | 0 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | Small Business Administration Loan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loans held for sale | 24,107,000 | 22,119,000 | ||
SBA loan servicing rights | 0 | |||
Level 2 | Fair Value, Measurements, Nonrecurring | Residential mortgage loans held for sale [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 0 | |||
Level 2 | Fair Value, Measurements, Nonrecurring | Residential mortgage loans held for sale - fair value option elected [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loans held for sale | 54,913,000 | |||
Level 2 | Fair Value, Measurements, Nonrecurring | Single tenant net lease loans held for sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loans held for sale | 0 | |||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
SBA loan servicing rights | 3,934,000 | |||
Residential mortgage loans held for sale | 1,124,226,000 | 1,152,962,000 | ||
Derivative assets (included in other assets) | 2,167,000 | 14,937,000 | ||
Equity securities (included in other assets) | 0 | 0 | ||
Derivative liabilities (included in other liabilities) | 600,000 | 0 | ||
Level 3 | Other real estate owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 1,728,000 | |||
Level 3 | Residential mortgage loans held for sale [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
SBA loan servicing rights | 21,703,000 | |||
Residential mortgage loans held for sale | 0 | 0 | ||
Level 3 | Former bank premises | Other real estate owned | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 1,728,000 | |||
Level 3 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Derivative assets (included in other assets) | 2,167,000 | |||
Equity securities (included in other assets) | 0 | 0 | ||
Residential mortgage loan servicing rights, at fair value | 49,579,000 | 21,703,000 | ||
Derivative liabilities (included in other liabilities) | 600,000 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | Agency Mortgage-Backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | Agency CMO | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | Privately-issued CMO | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | Privately-issued ABS | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | SBA certificates | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | Municipal bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | U.S. Treasury bills. | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total securities available for sale | 0 | |||
Level 3 | Fair Value, Measurements, Recurring | Residential mortgage loans held for sale - fair value option elected [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Residential mortgage loans held for sale | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 16,610,000 | 15,241,000 | ||
SBA loan servicing rights | 3,748,000 | |||
Total other real estate owned | 1,728,000 | |||
Level 3 | Fair Value, Measurements, Nonrecurring | Residential real estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 3,067,000 | 5,329,000 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial real estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 1,021,000 | 1,134,000 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | SBA commercial real estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 9,039,000 | 5,561,000 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | Multifamily | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 482,000 | 698,000 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | Land and Land Development [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 2,000 | |||
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial Business [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 1,476,000 | 1,670,000 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | SBA commercial business | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 1,278,000 | 648,000 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total impaired loans | 247,000 | 199,000 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | Small Business Administration Loan [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loans held for sale | 0 | 0 | ||
SBA loan servicing rights | 4,447,000 | |||
Level 3 | Fair Value, Measurements, Nonrecurring | Residential mortgage loans held for sale [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other real estate owned | 1,728,000 | |||
Level 3 | Fair Value, Measurements, Nonrecurring | Residential mortgage loans held for sale - fair value option elected [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loans held for sale | $ 0 | |||
Level 3 | Fair Value, Measurements, Nonrecurring | Single tenant net lease loans held for sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total loans held for sale | $ 23,020,000 |
FAIR VALUE MEASUREMENTS - Recon
FAIR VALUE MEASUREMENTS - Reconciliation of derivative assets and liabilities measured at fair value on a recurring basis, Unobservable Input (Level 3) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
FAIR VALUE MEASUREMENTS | |||
Beginning balance | $ 14,937 | $ 3,269 | $ 380 |
Unrealized gains/(losses) recognized in earnings, net of settlements | (13,370) | 11,668 | 2,889 |
Ending balance | $ 1,567 | $ 14,937 | $ 3,269 |
FAIR VALUE MEASUREMENTS - Signi
FAIR VALUE MEASUREMENTS - Significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a recurring basis (Details) | Sep. 30, 2021 | Sep. 30, 2020 |
Pull-through rate [Member] | Minimum [Member] | Interest rate lock commitments | ||
Fixed interest rate | 58.00% | 0.00% |
Pull-through rate [Member] | Maximum [Member] | Interest rate lock commitments | ||
Fixed interest rate | 100.00% | 100.00% |
Pull-through rate [Member] | Weighted Average [Member] | ||
Fixed interest rate | 83.00% | |
Pull-through rate [Member] | Weighted Average [Member] | Interest rate lock commitments | ||
Fixed interest rate | 80.00% | |
Direct costs to close [Member] | Minimum [Member] | Interest rate lock commitments | ||
Fixed interest rate | 0.37% | 0.31% |
Direct costs to close [Member] | Maximum [Member] | Interest rate lock commitments | ||
Fixed interest rate | 1.74% | 1.01% |
Direct costs to close [Member] | Weighted Average [Member] | Interest rate lock commitments | ||
Fixed interest rate | 0.86% | 0.52% |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of reconciliation of MSRs measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (Details) - Mortgage Service Rights - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 21,703 | $ 934 | $ 0 |
Issuances (loans sold with servicing retained) | 36,679 | 24,058 | 940 |
Net settlements | (9,555) | (1,542) | (6) |
Unrealized gains (losses) included in earnings | 752 | (1,747) | 0 |
Ending balance | $ 49,579 | $ 21,703 | $ 934 |
FAIR VALUE MEASUREMENTS - Sum_2
FAIR VALUE MEASUREMENTS - Summary of information about significant unobservable inputs (Level 3) used in the valuation of MSRs measured at fair value on a recurring basis (Level 3) (Details) | Sep. 30, 2021 | Sep. 30, 2020 |
Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 9.25 | |
Discount rate | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 8.50 | |
Discount rate | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 10 | |
Discount rate | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 8.51 | |
Prepayment rate | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 6.04 | 2.99 |
Prepayment rate | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 43.27 | 86.98 |
Prepayment rate | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Mortgage servicing rights, measurement input | 10 | 18.08 |
FAIR VALUE MEASUREMENTS (Provis
FAIR VALUE MEASUREMENTS (Provisions For Loan Losses Recognized For Impaired Loans) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Impaired Loans [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Provision for loan losses recognized | $ 381 | $ 2,424 | $ 860 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Impairment Charges to Write Down Loan Servicing Rights at Fair Value) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
FAIR VALUE MEASUREMENTS | |||
Charges to write down SBA loan servicing rights | $ 66 | $ (116) | $ 113 |
FAIR VALUE MEASUREMENTS - Sum_3
FAIR VALUE MEASUREMENTS - Summary of Aggregate Fair Value and the Aggregate Remaining Principal Balance for Residential Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
FAIR VALUE MEASUREMENTS | ||
Residential mortgage loans held for sale Aggregate Fair Value | $ 167,813 | $ 208,493 |
Residential mortgage loans held for sale Aggregate Principal Balance | 163,158 | 198,138 |
Residential mortgage loans held for sale Difference | $ 4,655 | $ 10,355 |
FAIR VALUE MEASUREMENTS - Sum_4
FAIR VALUE MEASUREMENTS - Summary of Gains and Losses and Interest Included in Earnings Related to Financial Assets Measured at Fair Value Under the Fair Value Options (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Total gains and interest included in earnings | $ 7,712 | $ 12,530 | $ 4,008 |
Interest income [Member] | |||
Interest income | 5,695 | 5,026 | 1,516 |
Mortgage Banking [Member] | |||
Gains (losses) - included in mortgage banking income | $ 2,017 | $ 7,504 | $ 2,492 |
FAIR VALUE MEASUREMENTS (Carryi
FAIR VALUE MEASUREMENTS (Carrying Value And Estimated Fair Value Of Financial Instruments) (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 20, 2018 |
Financial assets: | |||||
Cash and due from banks | $ 14,191 | $ 12,807 | |||
Interest-bearing deposits with banks | 19,237 | 20,919 | |||
Securities available for sale | 206,681 | 201,965 | |||
Securities held to maturity | 1,837 | 2,102 | |||
Residential mortgage loans held for sale | 1,075,936 | 1,090,063 | |||
Single tenant net lease loans held for sale | 23,020 | ||||
SBA loan servicing rights | 4,447 | 3,748 | $ 3,030 | $ 2,405 | |
Derivative assets (included in other assets) | 3,632 | 15,163 | |||
Financial liabilities: | |||||
Deposits | 1,227,580 | 1,048,076 | |||
Borrowings from FHLB | 250,000 | 310,858 | |||
Subordinated note | $ 20,000 | ||||
Accrued interest payable | 258 | 683 | |||
Advance payments by borrowers for taxes and insurance | 1,188 | 2,615 | |||
Derivative liabilities (included in other liabilities) | 635 | 1,827 | |||
Level 1 | |||||
Financial assets: | |||||
Cash and due from banks | 14,191 | 12,807 | |||
Interest-bearing deposits with banks | 19,237 | 20,919 | |||
Interest-bearing time deposits | 0 | 0 | |||
Securities available for sale | 0 | 0 | |||
Securities held to maturity | 0 | 0 | |||
Residential mortgage loans held for sale | 0 | 0 | |||
Single tenant net lease loans held for sale | 0 | ||||
FRB and FHLB stock | |||||
Accrued interest receivable | 0 | 0 | |||
SBA loan servicing rights | 0 | ||||
Derivative assets (included in other assets) | 0 | 0 | |||
Equity securities (included in other assets) | 112 | 66 | |||
Financial liabilities: | |||||
Deposits | 0 | 0 | |||
Borrowings from FHLB | 0 | 0 | |||
Subordinated note | 0 | 0 | |||
Federal Reserve PPPLF borrowings | 0 | ||||
Accrued interest payable | 0 | 0 | |||
Advance payments by borrowers for taxes and insurance | 0 | 0 | |||
Derivative liabilities (included in other liabilities) | 0 | 0 | |||
Level 1 | Small Business Administration Loans [Member] | |||||
Financial assets: | |||||
Residential mortgage loans held for sale | 0 | 0 | |||
Level 1 | Residential mortgage loans held for sale [Member] | |||||
Financial assets: | |||||
Residential mortgage loans held for sale | 0 | 0 | |||
SBA loan servicing rights | 0 | ||||
Level 2 | |||||
Financial assets: | |||||
Cash and due from banks | 0 | 0 | |||
Interest-bearing deposits with banks | 0 | 0 | |||
Interest-bearing time deposits | 2,222 | 2,964 | |||
Securities available for sale | 206,681 | 201,965 | |||
Securities held to maturity | 2,054 | 2,385 | |||
Residential mortgage loans held for sale | 0 | 0 | |||
Single tenant net lease loans held for sale | 0 | ||||
FRB and FHLB stock | |||||
Accrued interest receivable | 6,243 | 6,462 | |||
SBA loan servicing rights | 0 | ||||
Derivative assets (included in other assets) | 1,465 | 226 | |||
Equity securities (included in other assets) | 0 | 0 | |||
Financial liabilities: | |||||
Deposits | 0 | 0 | |||
Borrowings from FHLB | 251,877 | 310,766 | |||
Subordinated note | 21,083 | 23,788 | |||
Federal Reserve PPPLF borrowings | 174,808 | ||||
Accrued interest payable | 258 | 683 | |||
Advance payments by borrowers for taxes and insurance | 1,188 | 2,615 | |||
Derivative liabilities (included in other liabilities) | 35 | 1,827 | |||
Level 2 | Small Business Administration Loans [Member] | |||||
Financial assets: | |||||
Residential mortgage loans held for sale | 27,312 | 24,666 | |||
Level 2 | Residential mortgage loans held for sale [Member] | |||||
Financial assets: | |||||
Residential mortgage loans held for sale | 167,813 | 263,519 | |||
SBA loan servicing rights | 0 | ||||
Level 3 | |||||
Financial assets: | |||||
Cash and due from banks | 0 | 0 | |||
Interest-bearing deposits with banks | 0 | 0 | |||
Interest-bearing time deposits | 0 | 0 | |||
Securities available for sale | 0 | 0 | |||
Securities held to maturity | 0 | 0 | |||
Residential mortgage loans held for sale | 1,124,226 | 1,152,962 | |||
Single tenant net lease loans held for sale | 23,020 | ||||
FRB and FHLB stock | |||||
Accrued interest receivable | 0 | 0 | |||
SBA loan servicing rights | 3,934 | ||||
Derivative assets (included in other assets) | 2,167 | 14,937 | |||
Equity securities (included in other assets) | 0 | 0 | |||
Financial liabilities: | |||||
Deposits | 1,228,147 | 1,050,569 | |||
Borrowings from FHLB | 0 | 0 | |||
Subordinated note | 0 | 0 | |||
Federal Reserve PPPLF borrowings | 0 | ||||
Accrued interest payable | 0 | 0 | |||
Advance payments by borrowers for taxes and insurance | 0 | 0 | |||
Derivative liabilities (included in other liabilities) | 600 | 0 | |||
Level 3 | Small Business Administration Loans [Member] | |||||
Financial assets: | |||||
Residential mortgage loans held for sale | 0 | 0 | |||
Level 3 | Residential mortgage loans held for sale [Member] | |||||
Financial assets: | |||||
Residential mortgage loans held for sale | 0 | 0 | |||
SBA loan servicing rights | 21,703 | ||||
Estimate of Fair Value Measurement [Member] | |||||
Financial assets: | |||||
Cash and due from banks | 14,191 | 12,807 | |||
Interest-bearing deposits with banks | 19,237 | 20,919 | |||
Interest-bearing time deposits | 2,222 | 2,964 | |||
Securities available for sale | 206,681 | 201,965 | |||
Securities held to maturity | 1,837 | 2,102 | |||
Residential mortgage loans held for sale | 1,075,936 | 1,090,063 | |||
Single tenant net lease loans held for sale | 23,020 | ||||
FRB and FHLB stock | 19,258 | 17,293 | |||
Accrued interest receivable | 6,243 | 6,462 | |||
SBA loan servicing rights | 4,447 | 3,748 | |||
Derivative assets (included in other assets) | 3,632 | 15,163 | |||
Equity securities (included in other assets) | 112 | 66 | |||
Financial liabilities: | |||||
Deposits | 1,227,580 | 1,048,076 | |||
Borrowings from FHLB | 250,000 | 310,858 | |||
Subordinated note | 19,865 | 19,797 | |||
Federal Reserve PPPLF borrowings | 174,834 | ||||
Accrued interest payable | 258 | 683 | |||
Advance payments by borrowers for taxes and insurance | 1,188 | 2,615 | |||
Derivative liabilities (included in other liabilities) | 635 | 1,827 | |||
Estimate of Fair Value Measurement [Member] | Small Business Administration Loans [Member] | |||||
Financial assets: | |||||
Residential mortgage loans held for sale | 24,107 | 22,119 | |||
Estimate of Fair Value Measurement [Member] | Residential mortgage loans held for sale [Member] | |||||
Financial assets: | |||||
Residential mortgage loans held for sale | 167,813 | 263,406 | |||
SBA loan servicing rights | 49,579 | $ 21,703 | |||
Estimate of Fair Value Measurement [Member] | Level 1 | |||||
Financial assets: | |||||
SBA loan servicing rights | 0 | ||||
Estimate of Fair Value Measurement [Member] | Level 1 | Residential mortgage loans held for sale [Member] | |||||
Financial assets: | |||||
SBA loan servicing rights | 0 | ||||
Estimate of Fair Value Measurement [Member] | Level 2 | |||||
Financial assets: | |||||
SBA loan servicing rights | 0 | ||||
Estimate of Fair Value Measurement [Member] | Level 2 | Residential mortgage loans held for sale [Member] | |||||
Financial assets: | |||||
SBA loan servicing rights | 0 | ||||
Estimate of Fair Value Measurement [Member] | Level 3 | |||||
Financial assets: | |||||
SBA loan servicing rights | 4,646 | ||||
Estimate of Fair Value Measurement [Member] | Level 3 | Residential mortgage loans held for sale [Member] | |||||
Financial assets: | |||||
SBA loan servicing rights | $ 49,579 |
FAIR VALUE MEASUREMENTS (Additi
FAIR VALUE MEASUREMENTS (Additional information) (Detail) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | $ 1,567 | $ 14,937 | $ 3,269 | $ 380 |
Discount rate | ||||
Other Real Estate Owned, Measurement Input | 30.9 | |||
Maximum [Member] | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 22.34% | 19.86% | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 24.51% | 26.68% | ||
Maximum [Member] | Collateral [Member] | Discount rate | ||||
Fair value inputs discount rate | 26.00% | 12.00% | ||
Maximum [Member] | Impaired Loans [Member] | Discount rate | ||||
Fair value inputs discount rate | 100.00% | 75.00% | ||
Maximum [Member] | SBA | Discount rate | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 22.34% | 19.86% | ||
Maximum [Member] | SBA | Prepayment rate | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 24.51% | 26.68% | ||
Minimum [Member] | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 4.57% | 3.58% | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 8.30% | 8.69% | ||
Minimum [Member] | Collateral [Member] | Discount rate | ||||
Fair value inputs discount rate | 0.00% | 0.00% | ||
Minimum [Member] | Impaired Loans [Member] | Discount rate | ||||
Fair value inputs discount rate | 0.00% | 0.00% | ||
Minimum [Member] | SBA | Discount rate | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 4.57% | 3.58% | ||
Minimum [Member] | SBA | Prepayment rate | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 8.30% | 8.69% | ||
Weighted Average [Member] | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 9.97% | 8.36% | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 15.98% | 17.46% | ||
Weighted Average [Member] | SBA | Discount rate | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 9.97% | 8.36% | ||
Weighted Average [Member] | SBA | Prepayment rate | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 15.98% | 17.46% |
CAPITAL REQUIREMENTS AND REST_3
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS (Bank's Actual Capital Amounts And Ratios) (Detail) $ in Thousands | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
Consolidated | ||
Total capital (to risk-weighted assets) Actual Amount | $ 193,476 | $ 168,617 |
Tier I capital (to risk-weighted assets) Actual Amount | 159,310 | 133,520 |
Common equity tier I capital (to risk-weighted assets) Actual Amount | 159,310 | 133,520 |
Tier I capital (to average adjusted total assets) Actual Amount | $ 159,310 | $ 133,520 |
Total capital (to risk weighted assets) Actual Ratio | 14.28 | 13.37 |
Tier I capital (to risk-weighted assets) Actual Ratio | 11.76 | 10.58 |
Common equity tier I capital (to risk-weighted assets) Actual Ratio | 11.76% | 10.58% |
Tier I capital (to average adjusted total assets) Actual Ratio | 9.73 | 8.53 |
Total capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Amount | $ 108,401 | $ 100,929 |
Tier I capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Amount | 81,301 | 75,697 |
Common equity tier I capital (to risk-weighted assets) Minimum for Capital Adequacy Purposes Amount | 60,976 | 56,773 |
Tier I capital (to average adjusted total assets) Minimum for Capital Adequacy Purposes Amount | $ 65,480 | $ 62,617 |
Total capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Ratio | 8 | 8 |
Tier I capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Ratio | 6 | 6 |
Common equity tier I capital (to risk-weighted assets) Minimum for Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Tier I capital (to average adjusted total assets) Minimum for Capital Adequacy Purposes Ratio | 4 | 4 |
Total capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ||
Tier I capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ||
Common equity tier I capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ||
Tier I capital (to average adjusted total assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ||
Total capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ||
Tier I capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ||
Common equity tier I capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ||
Tier I capital (to average adjusted total assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ||
Bank [Member] | ||
Total capital (to risk-weighted assets) Actual Amount | $ 183,885 | $ 160,452 |
Tier I capital (to risk-weighted assets) Actual Amount | 169,584 | 145,152 |
Common equity tier I capital (to risk-weighted assets) Actual Amount | 169,584 | 145,152 |
Tier I capital (to average adjusted total assets) Actual Amount | $ 169,584 | $ 145,152 |
Total capital (to risk weighted assets) Actual Ratio | 13.60 | 12.75 |
Tier I capital (to risk-weighted assets) Actual Ratio | 12.54 | 11.53 |
Common equity tier I capital (to risk-weighted assets) Actual Ratio | 12.54% | 11.53% |
Tier I capital (to average adjusted total assets) Actual Ratio | 10.07 | 9.37 |
Total capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Amount | $ 108,156 | $ 100,672 |
Tier I capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Amount | 81,117 | 75,504 |
Common equity tier I capital (to risk-weighted assets) Minimum for Capital Adequacy Purposes Amount | 60,838 | 56,428 |
Tier I capital (to average adjusted total assets) Minimum for Capital Adequacy Purposes Amount | $ 67,333 | $ 61,966 |
Total capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Ratio | 8 | 8 |
Tier I capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Ratio | 6 | 6 |
Common equity tier I capital (to risk-weighted assets) Minimum for Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Tier I capital (to average adjusted total assets) Minimum for Capital Adequacy Purposes Ratio | 4 | 4 |
Total capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 135,195 | $ 125,840 |
Tier I capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 108,156 | 100,672 |
Common equity tier I capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 87,877 | 81,796 |
Tier I capital (to average adjusted total assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 84,166 | $ 77,458 |
Total capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10 | 10 |
Tier I capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8 | 8 |
Common equity tier I capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Tier I capital (to average adjusted total assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5 | 5 |
CAPITAL REQUIREMENTS AND REST_4
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS - Additional Information (Details) $ / shares in Units, $ in Millions | Sep. 15, 2021item | Aug. 16, 2021item$ / shares | Sep. 30, 2021USD ($)$ / shares | Aug. 31, 2021shares | Sep. 30, 2020$ / shares | Sep. 30, 2019 | Mar. 31, 2008USD ($) | Sep. 30, 2005 |
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS | ||||||||
Capital Conservation Buffer, Percentage | 2.50% | 2.50% | 2.50% | 0.00% | ||||
Liquidation Account | $ 29.3 | |||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Dividend Split Ratio | item | 0.33 | 0.33 | ||||||
Number of shares issued as dividend for every share held under stock split | shares | 2 | |||||||
Maximum amount to attain consolidated capital requirements | $ 3,000 |
SUPPLEMENTAL DISCLOSURE FOR E_3
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE - (Net income Per Share Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic Earnings: | ||||||||||||||||
Net income attributable to First Savings Financial Group, Inc. | $ 4,849 | $ 4,308 | $ 10,487 | $ 9,923 | $ 15,137 | $ 15,405 | $ (627) | $ 3,439 | $ 5,321 | $ 4,392 | $ 3,533 | $ 2,931 | $ 29,567 | $ 33,354 | $ 16,177 | |
Shares: | ||||||||||||||||
Weighted average common shares outstanding, basic | 7,107,786 | 7,070,040 | 6,947,091 | |||||||||||||
Net income per common share, basic | $ 0.68 | $ 0.61 | $ 1.48 | $ 1.40 | $ 2.13 | $ 2.17 | $ (0.09) | $ 0.49 | $ 0.76 | $ 0.63 | $ 0.51 | $ 0.43 | $ 4.16 | $ 4.72 | $ 2.33 | |
Diluted Earnings: | ||||||||||||||||
Net income attributable to First Savings Financial Group, Inc. | $ 29,567 | $ 33,354 | $ 16,177 | |||||||||||||
Shares: | ||||||||||||||||
Weighted average common shares outstanding, basic | 7,107,786 | 7,070,040 | 6,947,091 | |||||||||||||
Add: Dilutive effect of outstanding options | 56,176 | 48,540 | 151,869 | |||||||||||||
Add: Dilutive effect of restricted stock | 9,771 | 9,282 | 17,292 | |||||||||||||
Weighted average common shares outstanding, as adjusted | 7,173,733 | 7,127,862 | 7,116,252 | |||||||||||||
Net income (loss) per common share, diluted | $ 0.67 | $ 0.60 | $ 1.46 | $ 1.39 | $ 2.12 | $ 2.17 | $ (0.09) | $ 0.48 | $ 0.75 | $ 0.62 | $ 0.50 | $ 0.41 | $ 4.12 | $ 4.68 | $ 2.27 |
SUPPLEMENTAL DISCLOSURE FOR E_4
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE - Additional Information (Detail) - shares | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
STOCK-BASED COMPENSATION PLANS | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 49,974 | 66,474 | 21,600 |
PARENT COMPANY CONDENSED FINA_3
PARENT COMPANY CONDENSED FINANCIAL INFORMATION - (Balance Sheets) (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 20, 2018 | Oct. 15, 2014 |
Assets: | |||||
Cash and due from banks | $ 14,191 | $ 12,807 | |||
Other assets | 21,550 | 30,126 | $ 4,200 | ||
Total Assets | 1,720,506 | 1,764,625 | $ 1,222,579 | ||
Liabilities and Equity: | |||||
Subordinated note | $ 20,000 | ||||
Stockholders' equity | 180,377 | 157,272 | |||
Total Liabilities and Equity | 1,720,506 | 1,764,625 | |||
Reportable Legal Entities [Member] | Parent Company [Member] | |||||
Assets: | |||||
Cash and due from banks | 6,870 | 4,762 | |||
Other assets | 755 | 988 | |||
Investment in subsidiaries | 193,926 | 171,871 | |||
Total Assets | 201,551 | 177,621 | |||
Liabilities and Equity: | |||||
Subordinated note | 19,865 | 19,797 | |||
Accrued expenses | 1,309 | 552 | |||
Stockholders' equity | 180,377 | 157,272 | |||
Total Liabilities and Equity | $ 201,551 | $ 177,621 |
PARENT COMPANY CONDENSED FINA_4
PARENT COMPANY CONDENSED FINANCIAL INFORMATION - (Statements of Income) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Dividend income from subsidiaries | $ 582 | $ 617 | $ 643 | ||||||||||||||||
Income (loss) before income taxes and equity in undistributed net income of subsidiaries | $ 5,807 | $ 5,125 | $ 14,182 | $ 14,852 | $ 23,228 | $ 21,149 | $ (1,876) | $ 4,241 | $ 7,023 | $ 5,711 | $ 3,730 | $ 3,626 | 39,966 | 46,742 | 20,090 | ||||
Income tax benefit | 958 | 817 | 3,695 | 4,527 | 7,257 | 5,540 | (774) | 638 | $ 1,359 | $ 748 | $ 466 | $ 522 | 9,997 | 12,661 | 3,095 | ||||
Net income (loss) | $ 4,849 | $ 4,308 | $ 10,487 | $ 10,325 | $ 15,971 | $ 15,609 | $ (1,102) | $ 3,603 | $ 5,664 | $ 4,963 | $ 3,264 | $ 3,104 | 29,969 | 34,081 | 16,995 | ||||
Equity in undistributed net income of subsidiaries | (402) | (727) | (818) | ||||||||||||||||
Net income (loss) | 29,567 | 33,354 | 16,177 | ||||||||||||||||
Parent Company [Member] | |||||||||||||||||||
Dividend income from subsidiaries | 5,175 | 1,000 | 750 | ||||||||||||||||
Interest expense | (1,274) | (1,274) | (1,277) | ||||||||||||||||
Other operating expenses | (1,076) | (1,002) | (882) | ||||||||||||||||
Income (loss) before income taxes and equity in undistributed net income of subsidiaries | 2,825 | (1,276) | (1,409) | ||||||||||||||||
Income tax benefit | 504 | 598 | 747 | ||||||||||||||||
Net income (loss) | 3,329 | (678) | (662) | ||||||||||||||||
Equity in undistributed net income of subsidiaries | 26,238 | 34,032 | 16,839 | ||||||||||||||||
Net income (loss) | 29,567 | 33,354 | 16,177 | ||||||||||||||||
Reportable Legal Entities [Member] | Parent Company [Member] | |||||||||||||||||||
Equity in undistributed net income of subsidiaries | 26,238 | 34,032 | 16,839 | ||||||||||||||||
Net income (loss) | $ 29,567 | $ 33,354 | $ 16,177 |
PARENT COMPANY CONDENSED FINA_5
PARENT COMPANY CONDENSED FINANCIAL INFORMATION - (Statements of Cash Flows) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Activities: | |||
Net income (loss) | $ 29,567 | $ 33,354 | $ 16,177 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in undistributed net income of subsidiaries | 402 | 727 | 818 |
Stock compensation expense | 277 | 279 | 246 |
Net change in other assets and liabilities | 7,077 | (7,314) | 81 |
Net cash provided by (used in) operating activities | 114,893 | (139,689) | (44,725) |
Investing Activities: | |||
Investment in interest-bearing time deposits | (497) | (1,145) | (1,085) |
Net cash used in investing activities | (55,877) | (339,433) | (112,127) |
Financing Activities: | |||
Exercise of stock options | 27 | 148 | 408 |
Tax paid on stock award shares for employees | 41 | 53 | 32 |
Net cash provided by (used) in financing activities | (59,314) | 471,416 | 156,010 |
Net increase (decrease) in cash and due from banks | (298) | (7,706) | (842) |
Cash and cash equivalents at beginning of year | 33,726 | 41,432 | 42,274 |
Cash and Cash Equivalents at End of Year | 33,428 | 33,726 | 41,432 |
Parent Company [Member] | |||
Operating Activities: | |||
Net income (loss) | 29,567 | 33,354 | 16,177 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in undistributed net income of subsidiaries | (26,238) | (34,032) | (16,839) |
Reportable Legal Entities [Member] | Parent Company [Member] | |||
Operating Activities: | |||
Net income (loss) | 29,567 | 33,354 | 16,177 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in undistributed net income of subsidiaries | (26,238) | (34,032) | (16,839) |
Stock compensation expense | 277 | 279 | 246 |
Net change in other assets and liabilities | 201 | 182 | (184) |
Net cash provided by (used in) operating activities | 3,807 | (217) | (600) |
Investing Activities: | |||
Investment in bank subsidiary | 0 | 0 | (2,000) |
Net cash used in investing activities | 0 | 0 | (2,000) |
Financing Activities: | |||
Exercise of stock options | 27 | 148 | 408 |
Tax paid on stock award shares for employees | (41) | (53) | (32) |
Dividends paid | (1,685) | (1,590) | (1,472) |
Net cash provided by (used) in financing activities | (1,699) | (1,495) | (1,096) |
Net increase (decrease) in cash and due from banks | 2,108 | (1,712) | (3,696) |
Cash and cash equivalents at beginning of year | 4,762 | 6,474 | 10,170 |
Cash and Cash Equivalents at End of Year | $ 6,870 | $ 4,762 | $ 6,474 |
CONCENTRATION OF CREDIT RISK -
CONCENTRATION OF CREDIT RISK - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CONCENTRATION OF CREDIT RISK | ||
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | $ 9.5 | $ 7.2 |
SUPPLEMENTAL DISCLOSURE OF CA_3
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION - (Cash Flow Information) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash payments for: | |||
Interest | $ 8,517 | $ 10,817 | $ 10,729 |
Income taxes (net of refunds received) | 9,051 | 3,971 | 1,572 |
Noncash investing and financing activities: | |||
Transfers from loans to loans held for Sale | 41,703 | 15,916 | 0 |
Transfers from loans to other real estate owned | 426 | 0 | 114 |
Proceeds from sales of other real estate owned financed through loans | 0 | 0 | 112 |
Cashless exercise of stock options | 77 | 249 | 542 |
Transfers from premises and equipment to other real estate owned | $ 0 | $ 0 | $ 1,893 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||||||||||||||||||
Interest income | $ 16,243 | $ 16,150 | $ 16,840 | $ 16,026 | $ 15,765 | $ 14,719 | $ 13,554 | $ 13,661 | $ 13,829 | $ 13,058 | $ 12,307 | $ 11,801 | $ 65,259 | $ 57,699 | $ 50,995 | ||||
Interest expense | 1,819 | 1,921 | 2,060 | 2,287 | 2,337 | 2,543 | 2,783 | 2,875 | 3,069 | 3,166 | 2,446 | 2,225 | 8,087 | 10,538 | 10,906 | ||||
Net interest income | 14,424 | 14,229 | 14,780 | 13,739 | 13,428 | 12,176 | 10,771 | 10,786 | 10,760 | 9,892 | 9,861 | 9,576 | 57,172 | 47,161 | 40,089 | ||||
Provision (credit) for loan losses | 8 | (2,730) | 287 | 668 | 2,772 | 2,980 | 1,705 | 505 | 471 | 337 | 340 | 315 | (1,767) | 7,962 | 1,463 | ||||
Net interest income after provision (credit) for loan losses | 14,416 | 16,959 | 14,493 | 13,071 | 10,656 | 9,196 | 9,066 | 10,281 | 10,289 | 9,555 | 9,521 | 9,261 | 58,939 | 39,199 | 38,626 | ||||
Noninterest income | 16,495 | 18,785 | 38,973 | 46,183 | 57,024 | 46,962 | 11,133 | 18,232 | 18,340 | 12,644 | 7,089 | 5,781 | 120,436 | 133,351 | 43,854 | ||||
Noninterest expense (income) | 25,104 | 30,619 | 39,284 | 44,402 | 44,452 | 35,009 | 22,075 | 24,272 | 21,606 | 16,488 | 12,880 | 11,416 | 139,409 | 125,808 | 62,390 | ||||
Income (loss) before income taxes | 5,807 | 5,125 | 14,182 | 14,852 | 23,228 | 21,149 | (1,876) | 4,241 | $ 7,023 | $ 5,711 | $ 3,730 | $ 3,626 | 39,966 | 46,742 | 20,090 | ||||
Income tax expense (benefit) | 958 | 817 | 3,695 | 4,527 | 7,257 | 5,540 | (774) | 638 | $ 1,359 | $ 748 | $ 466 | $ 522 | 9,997 | 12,661 | 3,095 | ||||
Net income (loss) | 4,849 | 4,308 | 10,487 | 10,325 | 15,971 | 15,609 | (1,102) | 3,603 | 5,664 | 4,963 | 3,264 | 3,104 | 29,969 | 34,081 | 16,995 | ||||
Net income (loss) attributable to noncontrolling interest in subsidiary | 402 | 834 | 204 | 475 | 164 | 343 | 571 | 269 | 173 | ||||||||||
Net income attributable to First Savings Financial Group, Inc. | $ 4,849 | $ 4,308 | $ 10,487 | $ 9,923 | $ 15,137 | $ 15,405 | $ (627) | $ 3,439 | $ 5,321 | $ 4,392 | $ 3,533 | $ 2,931 | $ 29,567 | $ 33,354 | $ 16,177 | ||||
Net income (loss) per common share, basic | $ 0.68 | $ 0.61 | $ 1.48 | $ 1.40 | $ 2.13 | $ 2.17 | $ (0.09) | $ 0.49 | $ 0.76 | $ 0.63 | $ 0.51 | $ 0.43 | $ 4.16 | $ 4.72 | $ 2.33 | ||||
Net income (loss) per common share, diluted | $ 0.67 | $ 0.60 | $ 1.46 | $ 1.39 | $ 2.12 | $ 2.17 | $ (0.09) | $ 0.48 | $ 0.75 | $ 0.62 | $ 0.50 | $ 0.41 | $ 4.12 | $ 4.68 | $ 2.27 |
SEGMENT REPORTING - Financial S
SEGMENT REPORTING - Financial Statements Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Number of operating segments | segment | 3 | ||||||||||||||||||
Net interest income | $ 14,424 | $ 14,229 | $ 14,780 | $ 13,739 | $ 13,428 | $ 12,176 | $ 10,771 | $ 10,786 | $ 10,760 | $ 9,892 | $ 9,861 | $ 9,576 | $ 57,172 | $ 47,161 | $ 40,089 | ||||
Provision for loan losses | 8 | (2,730) | 287 | 668 | 2,772 | 2,980 | 1,705 | 505 | 471 | 337 | 340 | 315 | (1,767) | 7,962 | 1,463 | ||||
Net interest income (loss) after provision | 14,416 | 16,959 | 14,493 | 13,071 | 10,656 | 9,196 | 9,066 | 10,281 | 10,289 | 9,555 | 9,521 | 9,261 | 58,939 | 39,199 | 38,626 | ||||
Net gains on sales of loans, SBA | 8,740 | 5,673 | 4,569 | ||||||||||||||||
Mortgage banking income | 104,504 | 120,733 | 33,044 | ||||||||||||||||
Noninterest income | 16,495 | 18,785 | 38,973 | 46,183 | 57,024 | 46,962 | 11,133 | 18,232 | 18,340 | 12,644 | 7,089 | 5,781 | 120,436 | 133,351 | 43,854 | ||||
Noninterest expense (income) | 25,104 | 30,619 | 39,284 | 44,402 | 44,452 | 35,009 | 22,075 | 24,272 | 21,606 | 16,488 | 12,880 | 11,416 | 139,409 | 125,808 | 62,390 | ||||
Income (loss) before income taxes | 5,807 | 5,125 | 14,182 | 14,852 | 23,228 | 21,149 | (1,876) | 4,241 | 7,023 | $ 5,711 | $ 3,730 | $ 3,626 | 39,966 | 46,742 | 20,090 | ||||
Income tax expense | 958 | 817 | 3,695 | 4,527 | 7,257 | 5,540 | (774) | 638 | $ 1,359 | $ 748 | $ 466 | $ 522 | 9,997 | 12,661 | 3,095 | ||||
Segment profit (loss) | 4,849 | $ 4,308 | $ 10,487 | $ 10,325 | 15,971 | $ 15,609 | $ (1,102) | $ 3,603 | $ 5,664 | $ 4,963 | $ 3,264 | $ 3,104 | 29,969 | 34,081 | 16,995 | ||||
Non cash items: | |||||||||||||||||||
Depreciation and amortization | 2,300 | 1,858 | 1,684 | ||||||||||||||||
Segment assets | 1,720,506 | 1,764,625 | 1,222,579 | 1,720,506 | 1,764,625 | 1,222,579 | |||||||||||||
Core Banking Segment [Member] | |||||||||||||||||||
Net interest income | 46,122 | 39,408 | 36,524 | ||||||||||||||||
Provision for loan losses | (1,782) | 4,636 | (242) | ||||||||||||||||
Net interest income (loss) after provision | 47,904 | 34,772 | 36,766 | ||||||||||||||||
Net gains on sales of loans, SBA | 0 | 0 | |||||||||||||||||
Mortgage banking income | 4 | 8 | 33 | ||||||||||||||||
Noninterest income | 6,331 | 5,905 | 5,650 | ||||||||||||||||
Noninterest expense (income) | 35,636 | 29,772 | 28,852 | ||||||||||||||||
Income (loss) before income taxes | 18,599 | 10,905 | 13,564 | ||||||||||||||||
Income tax expense | 2,935 | 2,265 | 2,143 | ||||||||||||||||
Segment profit (loss) | 15,664 | 8,640 | 11,421 | ||||||||||||||||
Non cash items: | |||||||||||||||||||
Depreciation and amortization | 1,953 | 1,558 | 1,467 | ||||||||||||||||
Segment assets | 1,468,483 | 1,459,467 | 1,124,526 | 1,468,483 | 1,459,467 | 1,124,526 | |||||||||||||
SBA Lending Segment [Member] | |||||||||||||||||||
Net interest income | 10,339 | 5,911 | 4,145 | ||||||||||||||||
Provision for loan losses | 15 | 3,326 | 1,705 | ||||||||||||||||
Net interest income (loss) after provision | 10,324 | 2,585 | 2,440 | ||||||||||||||||
Net gains on sales of loans, SBA | 8,740 | 5,673 | 4,569 | ||||||||||||||||
Mortgage banking income | 0 | 0 | |||||||||||||||||
Noninterest income | 9,661 | 6,751 | 5,182 | ||||||||||||||||
Noninterest expense (income) | 9,374 | 7,853 | 5,953 | ||||||||||||||||
Income (loss) before income taxes | 10,611 | 1,483 | 1,669 | ||||||||||||||||
Income tax expense | 2,512 | 189 | 213 | ||||||||||||||||
Segment profit (loss) | 8,099 | 1,294 | 1,456 | ||||||||||||||||
Non cash items: | |||||||||||||||||||
Depreciation and amortization | 42 | 51 | 49 | ||||||||||||||||
Segment assets | 168,342 | 283,994 | 84,661 | 168,342 | 283,994 | 84,661 | |||||||||||||
Mortgage Banking Segment [Member] | |||||||||||||||||||
Net interest income | 1,940 | 3,046 | 636 | ||||||||||||||||
Provision for loan losses | 0 | 0 | |||||||||||||||||
Net interest income (loss) after provision | 1,940 | 3,046 | 636 | ||||||||||||||||
Net gains on sales of loans, SBA | 0 | 0 | |||||||||||||||||
Mortgage banking income | 104,500 | 120,725 | 33,011 | ||||||||||||||||
Noninterest income | 104,444 | 120,695 | 33,022 | ||||||||||||||||
Noninterest expense (income) | 94,768 | 88,573 | 27,760 | ||||||||||||||||
Income (loss) before income taxes | 11,616 | 35,168 | 5,898 | ||||||||||||||||
Income tax expense | 5,047 | 10,793 | 1,475 | ||||||||||||||||
Segment profit (loss) | 6,569 | 24,375 | 4,423 | ||||||||||||||||
Non cash items: | |||||||||||||||||||
Depreciation and amortization | 237 | 181 | 100 | ||||||||||||||||
Segment assets | 232,279 | 293,973 | 88,645 | 232,279 | 293,973 | 88,645 | |||||||||||||
Other Segment [Member] | |||||||||||||||||||
Net interest income | (1,229) | (1,204) | (1,216) | ||||||||||||||||
Provision for loan losses | 0 | 0 | |||||||||||||||||
Net interest income (loss) after provision | (1,229) | (1,204) | (1,216) | ||||||||||||||||
Net gains on sales of loans, SBA | 0 | 0 | |||||||||||||||||
Mortgage banking income | 0 | 0 | |||||||||||||||||
Noninterest income | 0 | 0 | |||||||||||||||||
Noninterest expense (income) | (369) | (390) | (175) | ||||||||||||||||
Income (loss) before income taxes | (860) | (814) | (1,041) | ||||||||||||||||
Income tax expense | (497) | (586) | (736) | ||||||||||||||||
Segment profit (loss) | (363) | (228) | (305) | ||||||||||||||||
Non cash items: | |||||||||||||||||||
Depreciation and amortization | 68 | 68 | 68 | ||||||||||||||||
Segment assets | $ (148,598) | $ (272,809) | $ (75,253) | $ (148,598) | $ (272,809) | $ (75,253) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Sources of Noninterest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from contracts with customers | $ 4,559 | $ 4,086 | $ 4,367 | ||||||||||||
Gain (loss) on securities | 7 | (74) | |||||||||||||
Gain on sale of SBA loans | 8,740 | 5,673 | 4,569 | ||||||||||||
Mortgage banking income | 104,504 | 120,733 | 33,044 | ||||||||||||
Increase in cash value of life insurance | 785 | 732 | 580 | ||||||||||||
Real estate lease income | 592 | 589 | 594 | ||||||||||||
Other | 1,256 | 1,531 | 774 | ||||||||||||
Other noninterest income | 115,877 | 129,265 | 39,487 | ||||||||||||
Total noninterest income | $ 16,495 | $ 18,785 | $ 38,973 | $ 46,183 | $ 57,024 | $ 46,962 | $ 11,133 | $ 18,232 | $ 18,340 | $ 12,644 | $ 7,089 | $ 5,781 | 120,436 | 133,351 | 43,854 |
Service charges on deposit accounts | |||||||||||||||
Revenue from contracts with customers | 1,468 | 1,581 | 1,957 | ||||||||||||
ATM and interchange fees | |||||||||||||||
Revenue from contracts with customers | 2,399 | 2,116 | 1,949 | ||||||||||||
Investment advisory income | |||||||||||||||
Revenue from contracts with customers | 589 | 288 | 324 | ||||||||||||
Other | |||||||||||||||
Revenue from contracts with customers | $ 103 | $ 101 | $ 137 |
MORTGAGE BANKING INCOME (Detail
MORTGAGE BANKING INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
MORTGAGE BANKING INCOME | |||
Origination and sale of mortgage loans (1) | $ 83,874 | $ 105,659 | $ 30,503 |
Mortgage brokerage income | 1,500 | ||
Net change in fair value of loans held for sale and interest rate lock commitments | (18,856) | 16,680 | 5,124 |
Realized and unrealized hedging gains (losses) | 4,140 | (22,412) | (3,462) |
Capitalized residential mortgage loan servicing rights | 36,679 | 24,058 | 940 |
Net change in fair value of residential mortgage loan servicing rights | (8,803) | (3,289) | (6) |
Net loan servicing income | 6,565 | 651 | 37 |
Provisions for loan repurchases and indemnifications | (595) | (614) | (92) |
Total mortgage banking income | $ 104,504 | $ 120,733 | $ 33,044 |