Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2021 | Feb. 04, 2022 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2021 | |
Document Quarterly 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 | |
Entity Address, Address Line Two | 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, $0.01 par value per share | |
Trading Symbol | FSFG | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,169,826 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001435508 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | [1] | Sep. 30, 2021 |
ASSETS | |||
Cash and due from banks | $ 16,543 | $ 14,191 | |
Interest-bearing deposits with banks | 24,049 | 19,237 | |
Total cash and cash equivalents | 40,592 | 33,428 | |
Interest-bearing time deposits | 1,973 | 2,222 | |
Securities available for sale, at fair value | 219,124 | 206,681 | |
Securities held to maturity | 1,802 | 1,837 | |
Loans held for sale, residential mortgage at fair value | 120,564 | 167,813 | |
Loans held for sale, single tenant net lease | 15,656 | 23,020 | |
Loans held for sale, Small Business Administration | 24,998 | 24,107 | |
Loans, net of allowance for loan losses of $14,780 at December 31, 2021 and $14,301 at September 30, 2021 | 1,142,655 | 1,075,936 | |
Federal Reserve Bank and Federal Home Loan Bank stock, at cost | 19,258 | 19,258 | |
Premises and equipment | 27,204 | 27,669 | |
Other real estate owned, held for sale | 1,728 | 1,728 | |
Accrued interest receivable: | |||
Loans | 4,507 | 4,398 | |
Securities | 2,330 | 1,845 | |
Cash surrender value of life insurance | 44,407 | 44,152 | |
Goodwill | 9,848 | 9,848 | |
Core deposit intangibles | 935 | 988 | |
Residential mortgage loan servicing rights, at fair value | 54,758 | 49,579 | |
SBA loan servicing rights | 4,429 | 4,447 | |
Other assets | 27,821 | 22,438 | |
Total Assets | 1,764,589 | 1,721,394 | |
Deposits: | |||
Noninterest-bearing | 287,449 | 291,039 | |
Interest-bearing | 979,586 | 936,541 | |
Total deposits | 1,267,035 | 1,227,580 | |
Federal Home Loan Bank borrowings | 258,377 | 250,000 | |
Other borrowings | 19,881 | 19,865 | |
Accrued interest payable | 251 | 258 | |
Advance payments by borrowers for taxes and insurance | 1,205 | 2,076 | |
Accrued expenses and other liabilities | 33,620 | 41,238 | |
Total Liabilities | 1,580,369 | 1,541,017 | |
STOCKHOLDERS' 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 7,754,316 shares (7,708,566 at September 30, 2021); outstanding 7,169,826 shares (7,125,888 shares at September 30, 2021) | 78 | 78 | |
Additional paid-in capital | 26,995 | 25,721 | |
Retained earnings - substantially restricted | 153,630 | 150,185 | |
Accumulated other comprehensive income | 9,219 | 8,900 | |
Unearned stock compensation | (1,285) | (138) | |
Less treasury stock, at cost - 584,490 shares (582,678 shares at September 30, 2021) | (4,417) | (4,369) | |
Total Stockholders' Equity | 184,220 | 180,377 | |
Total Liabilities and Stockholders' Equity | $ 1,764,589 | $ 1,721,394 | |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Loans, net of allowance for loan losses | $ 14,780 | $ 14,301 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Authorized | 20,000,000 | 20,000,000 |
Common stock, issued | 7,754,316 | 7,708,566 |
Common Stock, Outstanding | 7,169,826 | 7,125,888 |
Treasury stock, shares | 584,490 | 582,678 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | |||
INTEREST INCOME | ||||
Loans, including fees | $ 14,002 | [1] | $ 14,238 | |
Securities: | ||||
Taxable | 405 | [1] | 471 | |
Tax-exempt | 1,192 | [1] | 1,191 | |
Dividend income | 149 | [1] | 108 | |
Interest-bearing deposits with banks | 14 | [1] | 18 | |
Total interest income | 15,762 | [1] | 16,026 | |
INTEREST EXPENSE | ||||
Deposits | 811 | [1] | 936 | |
Federal Home Loan Bank borrowings | 730 | [1] | 861 | |
Federal Reserve PPPLF borrowings | 153 | |||
Other borrowings | 318 | [1] | 337 | |
Total interest expense | 1,859 | [1] | 2,287 | |
Net interest income | 13,903 | [1] | 13,739 | |
Provision for loan losses | 526 | [1] | 668 | |
Net interest income after provision for loan losses | 13,377 | [1] | 13,071 | |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 434 | [1] | 396 | |
ATM and interchange fees | 679 | [1] | 632 | |
Net unrealized gain on equity securities | 16 | [1] | 11 | |
Net gain on sales of loans, Small Business Administration | 1,636 | [1] | 1,267 | |
Net gain on sales of loans, single tenant net lease | [1] | 162 | ||
Mortgage banking income | 12,744 | [1] | 43,229 | |
Increase in cash surrender value of life insurance | 254 | [1] | 186 | |
Commission income | 188 | [1] | 134 | |
Real estate lease income | 148 | [1] | 147 | |
Income from tax credit investment | [1] | 10 | ||
Other income | 320 | [1] | 181 | |
Total noninterest income | 16,591 | [1] | 46,183 | |
NONINTEREST EXPENSE | ||||
Compensation and benefits | 17,291 | [1] | 33,862 | |
Occupancy and equipment | 2,113 | [1] | 2,585 | |
Data processing | 633 | [1] | 789 | |
Advertising | 792 | [1] | 2,311 | |
Professional fees | 1,189 | [1] | 1,274 | |
FDIC insurance premiums | 115 | [1] | 140 | |
Net loss on other real estate owned | 3 | |||
Other operating expenses | 2,719 | [1] | 3,438 | |
Total noninterest expense | 24,852 | [1] | 44,402 | |
Income before income taxes | 5,116 | [1] | 14,852 | |
Income tax expense | 811 | [1] | 4,527 | |
Net Income | 4,305 | [1] | 10,325 | |
Less: net income attributable to noncontrolling interests | 402 | |||
Net Income Attributable to First Savings Financial Group, Inc. | $ 4,305 | [1] | $ 9,923 | |
Net income per share: | ||||
Basic | $ 0.60 | [1] | $ 1.40 | |
Diluted | $ 0.60 | [1] | $ 1.39 | |
Weighted average shares outstanding: | ||||
Basic | 7,116,790 | [1] | 7,101,183 | |
Diluted | 7,207,210 | [1] | 7,154,106 | |
Dividends per share | $ 0.12 | [1] | $ 0.06 | |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net Income | $ 4,305 | [1] | $ 10,325 |
Unrealized gains on securities available for sale: | |||
Unrealized holding gains arising during the period | 404 | 861 | |
Income tax expense | (85) | (181) | |
Net of tax amount | 319 | 680 | |
Other Comprehensive Income | 319 | 680 | |
Comprehensive Income | 4,624 | 11,005 | |
Less: comprehensive income attributable to noncontrolling interests | 0 | 402 | |
Comprehensive Income Attributable to First Savings Financial Group, Inc. | $ 4,624 | $ 10,603 | |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Unearned Stock Compensation | Treasury Stock | Noncontrolling Interests in Subsidiary | Total | ||
Balances at Sep. 30, 2020 | $ 26 | $ 27,480 | $ 123,158 | $ 11,209 | $ (348) | $ (4,253) | $ 293 | $ 157,565 | ||
Net Income | 9,923 | 402 | 10,325 | |||||||
Acquisition of minority interests in Q2 | (1,757) | $ (695) | (2,452) | |||||||
Other comprehensive income | 680 | 680 | ||||||||
Common stock dividends | (401) | (401) | ||||||||
Restricted stock forfeitures | (8) | 8 | ||||||||
Stock compensation expense | 22 | 48 | 70 | |||||||
Purchase of treasury shares | (42) | (42) | ||||||||
Balances at Dec. 31, 2020 | 26 | 25,737 | 132,680 | 11,889 | (292) | (4,295) | 165,745 | |||
Cumulative effect adjustment, adoption of ASU 2016-02 | 150,185 | |||||||||
Balances at Sep. 30, 2021 | 78 | 25,721 | 150,185 | 8,900 | (138) | (4,369) | 180,377 | |||
Net Income | 4,305 | 4,305 | [1] | |||||||
Other comprehensive income | 319 | 319 | ||||||||
Common stock dividends | (860) | (860) | ||||||||
Restricted stock grants | 1,222 | (1,222) | ||||||||
Stock compensation expense | 52 | 75 | 127 | |||||||
Purchase of treasury shares | (48) | (48) | ||||||||
Balances at Dec. 31, 2021 | $ 78 | $ 26,995 | $ 153,630 | $ 9,219 | $ (1,285) | $ (4,417) | 184,220 | |||
Cumulative effect adjustment, adoption of ASU 2016-02 | [1] | $ 153,630 | ||||||||
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||
Dividends per share | $ 0.12 | [1] | $ 0.06 |
Restricted stock grants - shares | 45,750 | ||
Restricted stock forfeitures - shares | 600 | ||
Stock option exercises, shares | 3,600 | ||
Purchase of treasury shares, shares | 1,812 | 4,191 | |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 4,305 | [1] | $ 10,325 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision for loan losses | 526 | [1] | 668 |
Depreciation and amortization | 606 | 548 | |
Amortization of premiums and accretion of discounts on securities, net | 233 | 168 | |
Amortization and accretion of fair value adjustments on loans, net | (408) | (423) | |
Loans originated for sale | (561,427) | (1,449,271) | |
Proceeds on sales of loans | 610,090 | 1,412,419 | |
Net realized and unrealized gain on loans held for sale | (2,224) | (34,482) | |
Capitalization of loan servicing rights | (4,850) | (13,199) | |
Net change in value of loan servicing rights | (311) | 3,418 | |
Net realized and unrealized gain on other real estate owned | (6) | ||
Increase in cash surrender value of life insurance | (254) | [1] | (186) |
Net gain on equity securities | (16) | (11) | |
Income from tax credit investment | (10) | ||
Deferred income taxes | 1,261 | 2,170 | |
Stock compensation expense | 127 | 70 | |
Increase in accrued interest receivable | (594) | (961) | |
Increase (decrease) in accrued interest payable | (7) | 112 | |
Change in other assets and liabilities, net | (6,282) | 2,475 | |
Net Cash Provided by (Used In) Operating Activities | 40,765 | (66,166) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in interest-bearing time deposits | (252) | ||
Proceeds from sales and maturities of interest-bearing time deposits | 245 | 490 | |
Purchase of securities available for sale | (15,720) | (5,285) | |
Proceeds from maturities of securities available for sale | 2,022 | 3,370 | |
Proceeds from maturities of securities held to maturity | 30 | 30 | |
Principal collected on securities | 1,435 | 983 | |
Net increase in loans | (67,075) | (25,678) | |
Purchase of Federal Home Loan Bank stock | (2,017) | ||
Proceeds from life insurance | 575 | ||
Proceeds from sale of other real estate owned | 61 | ||
Purchase of premises and equipment | (71) | (1,096) | |
Proceeds from sales of premises and equipment | 12 | ||
Investment in partnership interests | (240) | ||
Acquisition of minority interests in Q2 | (1,745) | ||
Net Cash Used In Investing Activities | (78,799) | (31,127) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase in deposits | 39,455 | 73,244 | |
Net increase (decrease) in Federal Home Loan Bank line of credit | 8,377 | (766) | |
Proceeds from Federal Home Loan Bank advances | 75,000 | 280,000 | |
Repayment of Federal Home Loan Bank advances | (75,000) | (250,000) | |
Net decrease in Federal Reserve PPPLF borrowings | (2,062) | ||
Net decrease in advance payments by borrowers for taxes and insurance | (871) | (1,015) | |
Taxes paid on stock award shares for employees | (48) | (41) | |
Dividends paid on common stock | (1,715) | (401) | |
Net Cash Provided By Financing Activities | 45,198 | 98,959 | |
Net Increase in Cash and Cash Equivalents | 7,164 | 1,666 | |
Cash and cash equivalents at beginning of period | 33,428 | 33,726 | |
Cash and Cash Equivalents at End of Period | $ 40,592 | $ 35,392 | |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Presentation of Interim Informa
Presentation of Interim Information | 3 Months Ended |
Dec. 31, 2021 | |
Presentation of Interim Information | |
Presentation of Interim Information | 1. Presentation of Interim Information 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 16 locations in southern Indiana. The Bank attracts deposits primarily from the general public and uses those funds, along with other borrowings, primarily to originate commercial mortgage, residential mortgage, construction, commercial business and consumer loans, and to a lesser extent, to invest in mortgage-backed securities, municipal bonds and other investment 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. 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 11 other third-party insurance captives for which insurance may not be currently available or economically feasible in the insurance marketplace. 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 $3.1 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. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments considered necessary to present fairly the financial position as of December 31, 2021, the results of operations for the three-month periods ended December 31, 2021 and 2020, and the cash flows for the three-month periods ended December 31, 2021 and 2020. All of these adjustments are of a normal, recurring nature. Such adjustments are the only adjustments included in the unaudited consolidated financial statements. Interim results are not necessarily indicative of results for a full year. The unaudited consolidated financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements, conform to general practices within the banking industry and are presented as permitted by the instructions to Form 10-Q. Accordingly, they do not contain certain information included in the Company’s audited consolidated financial statements and related notes for the year ended September 30, 2021 included in the Company’s Annual Report on Form 10-K. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform with the current period presentation. The reclassifications had no effect on net income or stockholders’ equity. |
Investment Securities
Investment Securities | 3 Months Ended |
Dec. 31, 2021 | |
Investment Securities | |
Investment Securities | 2. Investment Securities U.S. agency bonds and notes, agency mortgage-backed securities and agency collateralized mortgage obligations (“CMO”) include treasury notes issued by the U.S. government; securities issued by the Government National Mortgage Association (“GNMA”), a U.S. government agency; and securities issued by the Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”) and the Federal Home Loan Bank (“FHLB”), which are U.S. government sponsored enterprises. The Company holds municipal bonds issued by municipal governments within the U.S. The Company also holds pass-through asset-backed securities guaranteed by the SBA representing participating interests in pools of long term debentures issued by state and local development companies certified by the SBA. Privately issued CMO and asset-backed securities (“ABS”) are complex securities issued by non-government special purpose entities that are collateralized by residential mortgage loans and residential home equity loans. 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 Cost Gain Losses Value (In thousands) December 31, 2021: Securities available for sale: Agency mortgage-backed $ 8,991 $ 238 $ 100 $ 9,129 Agency CMO 13,255 161 44 13,372 Privately-issued CMO 695 27 7 715 Privately-issued ABS 681 43 1 723 SBA certificates 2,033 5 20 2,018 Municipal bonds 181,798 11,479 110 193,167 Total securities available for sale $ 207,453 $ 11,953 $ 282 $ 219,124 Securities held to maturity: Agency mortgage-backed $ 59 $ 3 $ — $ 62 Municipal bonds 1,743 185 — 1,928 Total securities held to maturity $ 1,802 $ 188 $ — $ 1,990 Gross Gross Amortized Unrealized Unrealized Fair Cost Gain Losses Value (In thousands) 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 The amortized cost and fair value of investment securities as of December 31, 2021 by contractual maturity are shown below. CMO, ABS, SBA certificates, and mortgage-backed securities which do not have a single maturity date are shown separately. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Due within one year $ 9,255 $ 9,330 $ 265 $ 286 Due after one year through five years 25,384 26,390 879 962 Due after five years through ten years 35,348 37,632 599 680 Due after ten years 111,811 119,815 — — CMO 13,950 14,087 — — ABS 681 723 — — SBA certificates 2,033 2,018 — — Mortgage-backed securities 8,991 9,129 59 62 $ 207,453 $ 219,124 $ 1,802 $ 1,990 Information pertaining to investment securities with gross unrealized losses at December 31, 2021 and September 30, 2021, 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) December 31, 2021: Securities available for sale: Continuous loss position less than twelve months: Agency mortgage-backed 2 $ 4,235 $ 100 Agency CMO 4 2,683 44 SBA certificates 1 1,898 19 Municipal bonds 7 6,433 53 Total less than twelve months 14 15,249 216 Continuous loss position more than twelve months: Privately-issued CMO 1 22 7 Privately-issued ABS 1 350 1 SBA certificates 1 81 1 Municipal bonds 1 1,943 57 Total more than twelve months 4 2,396 66 Total securities available for sale 18 $ 17,645 $ 282 September 30, 2021: Securities available for sale: Continuous loss position less than twelve months: Agency mortgage-backed securities 1 $ 3,056 $ 52 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 At December 31, 2021 and September 30, 2021, the Company did not have any securities held to maturity with an unrealized loss. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions 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 December 31, 2021, which consisted of agency mortgage-backed securities, agency CMOs, privately-issued CMOs, privately-issued ABS, municipal bonds and SBA certificates, had a fair value as a percentage of amortized cost of 98.43%. The municipal securities are issued by municipal governments, and are generally secured by municipal project revenues or general obligations of the municipality. 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 December 31, 2021, the Company held nine privately-issued CMO and ABS securities, acquired in a 2009 bank merger, with an aggregate amortized cost of $484,000 and fair value of $493,000 that have been downgraded to a substandard regulatory classification due to the security’s credit quality rating by various rating agencies. At December 31, 2021, one privately-issued CMO security and one privately-issued ABS were in a loss position, and had depreciated approximately 2.09% from the Company’s carrying value and were collateralized by residential mortgage loans. These securities had a total fair value of $372,000 and a total unrealized loss of $8,000 at December 31, 2021. Based on the independent third party analysis of the expected cash flows, management determined that no other-than-temporary impairment was required to be recognized on the privately issued CMO and ABS portfolios at December 31, 2021. While the Company does not anticipate additional credit-related impairment losses at December 31, 2021, additional deterioration in market and economic conditions may have an adverse impact on the credit quality of the portfolio, and therefore, require a credit related impairment charge in the future. The unrealized losses on agency mortgage-backed securities, agency 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. During the three -month periods ended December 31, 2021 and 2020, the Company did not realize any gross gains or losses on sales of available for sale securities. Certain available for sale debt securities were pledged to secure FHLB borrowings at December 31, 2021 and September 30, 2021, and may be pledged to secure federal funds borrowings. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Dec. 31, 2021 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | 3. Loans and Allowance for Loan Losses Loans at December 31, 2021 and September 30, 2021 consisted of the following: December 31, September 30, 2021 2021 (In thousands) Real estate mortgage: 1-4 family residential $ 262,920 $ 241,425 Commercial 144,457 149,600 Single tenant net lease 461,123 403,692 SBA 62,729 62,805 Multifamily residential 38,738 40,324 Residential construction 9,962 8,330 Commercial construction 3,644 2,717 Land and land development 10,924 10,217 Commercial business 62,931 59,883 SBA commercial business (1) 69,647 80,400 Consumer 30,211 30,563 Total loans 1,156,656 1,089,956 Deferred loan origination fees and costs, net (2) 779 281 Allowance for loan losses (14,780) (14,301) Loans, net $ 1,142,655 $ 1,075,936 (1) Includes $46.0 million and $56.7 million of loans originated under the SBA’s Paycheck Protection Program (“PPP”) at December 31, 2021 and September 30, 2021, respectively. (2) Includes $332,000 and $757,000 of net deferred loan fees related to PPP loans as of December 31, 2021 and September 30, 2021, respectively. During the three-month period ended December 31, 2021, there were no significant changes in the Company’s lending activities or the methodology used to estimate the allowance for loan losses as disclosed in the Company’s Annual Report on Form 10-K for the year ended September 30, 2021. At December 31, 2021 and September 30, 2021, the Company did not own any residential real estate properties where physical possession has been obtained. At December 31, 2021 and September 30, 2021, the recorded investment in consumer mortgage loans collateralized by residential real estate properties in the process of foreclosure was $65,000 and $124,000, respectively. The following table provides the components of the recorded investment in loans as of December 31, 2021: Principal Accrued Net Deferred Recorded Loan Interest Loan Origination Investment Recorded Investment in Loans: Balance Receivable Fees and Costs in Loans (In thousands) Recorded Investment in Loans: Residential real estate $ 262,920 $ 872 $ 56 $ 263,848 Commercial real estate 144,457 464 (210) 144,711 Single tenant net lease 461,123 1,496 (84) 462,535 SBA commercial real estate 62,729 456 1,119 64,304 Multifamily 38,738 70 (47) 38,761 Residential construction 9,962 17 (47) 9,932 Commercial construction 3,644 9 (31) 3,622 Land and land development 10,294 20 (11) 10,303 Commercial business 62,931 172 50 63,153 SBA commercial business 69,647 817 — 70,464 Consumer 30,211 114 (16) 30,309 $ 1,156,656 $ 4,507 $ 779 $ 1,161,942 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 $ 2,675 $ 261,173 $ 263,848 Commercial real estate 994 143,717 144,711 Single tenant net lease — 462,535 462,535 SBA commercial real estate 7,467 56,837 64,304 Multifamily 384 38,377 38,761 Residential construction — 9,932 9,932 Commercial construction — 3,622 3,622 Land and land development — 10,303 10,303 Commercial business 1,362 61,791 63,153 SBA commercial business 1,320 69,144 70,464 Consumer 230 30,079 30,309 $ 14,432 $ 1,147,510 $ 1,161,942 The following table provides the components of the recorded investment in loans as of September 30, 2021: Net Deferred Accrued Loan Recorded Principal Loan Interest Origination Investment Recorded Investment in Loans: Balance Receivable Fees and Costs in Loans (In thousands) Recorded Investment in Loans: 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 The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of December 31, 2021 and September 30, 2021: Individually Collectively Evaluated for Evaluated for Ending Impairment Impairment Balance (In thousands) December 31, 2021: Residential real estate $ — $ 1,336 $ 1,336 Commercial real estate — 2,511 2,511 Single tenant net lease — 2,767 2,767 SBA commercial real estate 333 3,389 3,722 Multifamily — 441 441 Residential construction — 209 209 Commercial construction — 80 80 Land and land development — 221 221 Commercial business — 1,240 1,240 SBA commercial business 448 1,321 1,769 Consumer — 484 484 $ 781 $ 13,999 $ 14,780 September 30, 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 144 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 The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended December 31, 2021 and 2020: Beginning Provisions Ending Balance (Credits) Charge-Offs Recoveries Balance (In thousands) December 31, 2021: Residential real estate $ 1,438 $ (82) $ (23) $ 3 $ 1,336 Commercial real estate 2,806 (295) — — 2,511 Single tenant net lease 2,422 345 — — 2,767 SBA commercial real estate 3,475 267 (20) — 3,722 Multifamily 518 (77) — — 441 Residential construction 191 18 — — 209 Commercial construction 63 17 — — 80 Land and land development 235 (14) — — 221 Commercial business 1,284 (44) — — 1,240 SBA commercial business 1,346 401 — 22 1,769 Consumer 523 (10) (38) 9 484 $ 14,301 $ 526 $ (81) $ 34 $ 14,780 December 31, 2020: Residential real estate $ 1,255 $ (79) $ (5) $ 5 $ 1,176 Commercial real estate 3,058 (51) — — 3,007 Single tenant net lease 3,017 216 — — 3,233 SBA commercial real estate 4,154 (15) (522) 7 3,624 Multifamily 772 (59) — — 713 Residential construction 243 (94) — — 149 Commercial construction 181 31 — — 212 Land and land development 243 56 — 1 300 Commercial business 1,449 28 — 10 1,487 SBA commercial business 1,539 (12) — 9 1,536 Consumer 1,115 647 (75) — 1,687 $ 17,026 $ 668 $ (602) $ 32 $ 17,124 The following table presents impaired loans individually evaluated for impairment as of December 31, 2021 and for the three months ended December 31, 2021 and 2020. The Company did not recognize any interest income on impaired loans using the cash receipts method during the three-month periods ended December 31, 2021 and 2020. Three Months Ended At December 31, 2021 December 31, 2021 2021 2020 2020 Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income Investment Balance Allowance Investment Recognized Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 2,674 $ 3,190 $ — $ 3,444 $ 16 $ 5,294 $ 27 Commercial real estate 994 1,067 — 1,079 7 1,176 6 Single tenant net lease — — — — — — — SBA commercial real estate 6,665 7,561 — 8,102 — 2,960 — Multifamily 384 423 — 428 — 697 — Residential construction — — — — — — — Commercial construction — — — — — — — Land and land development — — — — — 1 — Commercial business 1,362 1,463 — 1,511 2 1,670 — SBA commercial business 470 630 — 502 — 416 — Consumer 92 85 — 87 — 101 1 $ 12,641 $ 14,419 $ — $ 15,153 $ 25 $ 12,315 $ 34 Loans with an allowance recorded: Residential real estate $ — $ — $ — $ 253 $ — $ 65 $ — Commercial real estate — — — — — — — Single tenant net lease — — — — — — — SBA commercial real estate 801 1,062 333 1,025 — 3,788 — Multifamily — — — — — — — Residential construction — — — — — — — Commercial construction — — — — — — — Land and land development — — — — — — — Commercial business — — — — — — — SBA commercial business 850 943 448 219 — 433 — Consumer 140 140 — 138 — 235 — $ 1,791 $ 2,145 $ 781 $ 1,635 $ — $ 4,521 $ — Total: Residential real estate $ 2,674 $ 3,190 $ — $ 3,697 $ 16 $ 5,359 $ 27 Commercial real estate 994 1,067 — 1,079 7 1,176 6 Single tenant net lease — — — — — — — SBA commercial real estate 7,466 8,623 333 9,127 — 6,748 — Multifamily 384 423 — 428 — 697 — Residential construction — — — — — — — Commercial construction — — — — — — — Land and land development — — — — — 1 — Commercial business 1,362 1,463 — 1,511 2 1,670 — SBA commercial business 1,320 1,573 448 721 — 849 — Consumer 232 225 — 225 — 336 1 $ 14,432 $ 16,564 $ 781 $ 16,788 $ 25 $ 16,836 $ 34 The following table presents impaired loans individually evaluated for impairment as of September 30, 2021. Unpaid Recorded Principal Related Investment Balance Allowance (In thousands) Loans with no related allowance recorded: Residential real estate $ 3,002 $ 3,551 $ — Commercial real estate 1,021 1,092 — Single tenant net lease — — — SBA commercial real estate 8,184 8,873 — Multifamily 482 539 — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 1,476 1,559 — SBA commercial business 1,278 1,534 — Consumer 103 97 — $ 15,546 $ 17,245 $ — Loans with an allowance recorded: Residential real estate $ 65 $ 65 $ — Commercial real estate — — — Single tenant net lease — — — SBA commercial real estate 969 1,394 114 Multifamily — — — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business — — — SBA commercial business 18 21 18 Consumer 145 144 1 $ 1,197 $ 1,624 $ 133 Total: Residential real estate $ 3,067 $ 3,616 $ — Commercial real estate 1,021 1,092 — Single tenant net lease — — — SBA commercial real estate 9,153 10,267 114 Multifamily 482 539 — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 1,476 1,559 — SBA commercial business 1,296 1,555 18 Consumer 248 241 1 $ 16,743 $ 18,869 $ 133 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 December 31, 2021 and September 30, 2021: At December 31, 2021 At September 30, 2021 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 $ 1,520 $ — $ 1,520 $ 1,894 $ — $ 1,894 Commercial real estate 579 — 579 599 — 599 Single tenant net lease — — — — — — SBA commercial real estate 7,466 — 7,466 9,153 472 9,625 Multifamily 384 — 384 482 — 482 Residential construction — — — — — — Commercial construction — — — — — — Land and land development — — — — — — Commercial business 1,265 — 1,265 1,370 — 1,370 SBA commercial business 1,320 — 1,320 1,296 — 1,296 Consumer 194 — 194 206 — 206 Total $ 12,728 $ — $ 12,728 $ 15,000 $ 472 $ 15,472 The following table presents the aging of the recorded investment in past due loans at December 31, 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 $ 858 $ 308 $ 253 $ 1,419 $ 262,429 $ 263,848 Commercial real estate 4 — 579 583 144,128 144,711 Single tenant net lease — — — — 462,535 462,535 SBA commercial real estate — — 3,119 3,119 61,185 64,304 Multifamily — — — — 38,761 38,761 Residential construction — — — — 9,932 9,932 Commercial construction — — — — 3,622 3,622 Land and land development — — — — 10,303 10,303 Commercial business — — 3 3 63,150 63,153 SBA commercial business 273 — 993 1,266 69,198 70,464 Consumer 44 45 54 143 30,166 30,309 Total $ 1,179 $ 353 $ 5,001 $ 6,533 $ 1,155,409 $ 1,161,942 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 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 conditions and 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: 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 December 31, 2021: Special December 31, 2021: Pass Mention Substandard Doubtful Loss Total (In thousands) Residential real estate $ 262,076 $ — $ 1,604 $ 168 $ — $ 263,848 Commercial real estate 142,270 — 2,441 — — 144,711 Single tenant net lease 462,535 — — — — 462,535 SBA commercial real estate 50,931 1,154 10,592 1,627 — 64,304 Multifamily 38,377 — 384 — — 38,761 Residential construction 9,932 — — — — 9,932 Commercial construction 3,622 — — — — 3,622 Land and land development 10,303 — — — — 10,303 Commercial business 61,757 — 1,396 — — 63,153 SBA commercial business 59,021 7,100 4,323 20 — 70,464 Consumer 30,255 — 54 — — 30,309 Total $ 1,131,079 $ 8,254 $ 20,794 $ 1,815 $ — $ 1,161,942 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 Troubled Debt Restructurings 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 or maturity 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. Loans modified in a TDR may be retained on accrual status if the borrower has maintained a period of performance in which the borrower’s lending relationship was not greater than ninety days delinquent at the time of restructuring and the Company determines the future collection of principal and interest is reasonably assured. Loans modified in a TDR that are placed on nonaccrual status at the time of restructuring will continue on nonaccrual status until the Company determines the future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrate a period of performance according to the restructured terms of at least six consecutive months. The following table summarizes the Company’s recorded investment in TDRs at December 31, 2021 and September 30, 2021. There was no specific reserve included in the allowance for loan losses related to TDRs at December 31, 2021 and September 30, 2021. Accruing Nonaccrual Total (In thousands) December 31, 2021: Residential real estate $ 1,154 $ — $ 1,154 Commercial real estate 415 456 871 SBA commercial real estate — 1,626 1,626 Multifamily — 384 384 Commercial business 97 1,262 1,359 Consumer 38 — 38 Total $ 1,704 $ 3,728 $ 5,432 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 There were no TDRs that were restructured during the three-months ended December 31, 2021 and 2020. At December 31, 2021 and September 30, 2021, the Company had committed to lend $1,000 to customers with outstanding loans classified as TDRs. There were no principal charge-offs recorded as a result of TDRs during the three-month period ended December 31, 2021. There were principal charge-offs totaling $398,000 recorded as a result of TDRs during the three-month period ended December 30, 2020. 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 three -month periods ended December 31, 2021 and 2020, the Company did not have any TDRs that were modified within the previous twelve months and for which there was a payment default. 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 Financial Accounting Standards Board (“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 December 31, 2021, no loans remained under the Company’s payment extension program. SBA Loan Servicing Rights The Company originates loans to commercial customers under the SBA 7(a) program and other programs, and sells the guaranteed portion of the SBA loans with servicing rights 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 approximates 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 include the discount rate and prepayment speed assumptions. 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 $250.5 million, $244.8 million and $208.9 million at December 31, 2021, September 30, 2021 and December 31, 2020, respectively. Contractually specified late fees and ancillary fees earned on SBA loans were $20,000 and $25,000 for the three-month periods ended December 31, 2021 and 2020, respectively. Net servicing income (contractually specified servicing fees offset by direct servicing expenses) related to SBA loans was $627,000 and $468,000 for the three-month periods ended December 31, 2021 and 2020, respectively. Net servicing income and costs 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 three -month periods ended December 31, 2021 and 2020 is as follows: 2021 2020 (In thousands) Balance, beginning of period $ 4,447 $ 3,748 Servicing rights capitalized 346 327 Amortization (288) (202) Direct write-offs (35) (183) Change in valuation allowance (41) 32 Balance, end of period $ 4,429 $ 3,722 The valuation allowance related to SBA loan servicing rights at December 31, 2021 and September 30, 2021 was $47,000 and $6,000, respectively. Mortgage Servicing Rights (“MSRs”) The Company originates residential mortgage loans for sale in the secondary market and retains servicing for certain of these loans when they are sold. MSRs retained for originated loans that have been sold are accounted for at fair value. The fair value of MSRs are determined using the present value of estimated expected net servicing income using assumptions about expected mortgage loan prepayment rates, discount rate, servicing costs, and other economic factors, which are determined based on current market conditions. Changes in these underlying assumptions could cause the fair value of MSRs to change significantly in the future. Changes in fair value of MSRs are recorded in mortgage banking income in the accompanying consolidated statements of income. MSRs are subject to changes in value from, among other things, changes in interest rates, prepayments of the underlying loans and changes in the credit quality of the underlying loans. A valuation model employed by an independent third party calculates the present value of future cash flows and is used to value the MSRs on a monthly basis. 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 MSRs at December 31, 2021 and September 30, 2021 were as follows: Range of Assumption Range of Assumption (Weighted Average) (Weighted Average) Assumption December 31, 2021 September 30, 2021 Discount rate 8.50% to 10.00 % ( 8.50% to 10.00% (8.51%) Prepayment rate 6.02% to 44.91% (8.72%) 6.04% to 43.27% (10.00%) The unpaid principal balance of residential mortgage loans serviced for others was $4.75 billion and $4.64 billion at December 31, 2021 and September 30, 2021, respectively. Custodial escrow balances maintained in connection with the foregoing loan servicing and other liabilities were $19.2 million and $30.6 million at December 31, 2021 and September 30, 2021, respectively. Contractually specified servicing fees (net of direct servicing expenses), late fees and other ancillary fees related to residential mortgage loans serviced for others were $2.1 million and $929,000 for the three -month periods ended December 31, 2021 and 2020, respectively. Contractually specified servicing fees are included in mortgage banking income in the consolidated statements of income. Changes in the carrying value of MSRs accounted for at fair value for the three -month periods ended December 31, 2021 and 2020 were as follows: 2021 2020 (In thousands) Fair value, beginning of period $ 49,579 $ 21,703 Servicing rights capitalized 4,504 12,872 Changes in fair value related to: Loan repayments (2,492) (1,816) Change in valuation model inputs or assumptions 3,167 (1,249) Balance, end of period $ 54,758 $ 31,510 |
Deposits
Deposits | 3 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Deposits | 4. Deposits Deposits at December 31, 2021 and September 30, 2021 consisted of the following: December 31, September 30, 2021 2021 (In thousands) Noninterest-bearing demand deposits $ 287,449 $ 291,039 NOW accounts 325,676 315,169 Money market accounts 236,999 222,972 Savings accounts 166,102 162,033 Retail time deposits 130,228 136,309 Brokered time deposits — 70,058 Reciprocal time deposits 120,581 30,000 Total $ 1,267,035 $ 1,227,580 |
Supplemental Disclosure for Net
Supplemental Disclosure for Net Income Per Share | 3 Months Ended |
Dec. 31, 2021 | |
Supplemental Disclosure for Net Income Per Share | |
Supplemental Disclosure for Net Income Per Share | 5. Supplemental Disclosure for Net Income Per Share Net income per share information is presented below for the three -month periods ended December 31, 2021 and 2020. All share and per share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. Three Months Ended December 31, (In thousands, except share and per share data) 2021 2020 Basic: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 4,305 $ 9,923 Shares: Weighted average common shares outstanding, basic 7,116,790 7,101,183 Net income per common share, basic $ 0.60 $ 1.40 Diluted: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 4,305 $ 9,923 Shares: Weighted average common shares outstanding, basic 7,116,790 7,101,183 Add: Dilutive effect of outstanding options 81,177 42,441 Add: Dilutive effect of restricted stock 9,243 10,482 Weighted average common shares outstanding, as adjusted 7,207,210 7,154,106 Net income per common share, diluted $ 0.60 $ 1.39 Nonvested restricted stock shares are not considered as outstanding for purposes of computing weighted average common shares outstanding. Stock options for 137,250 and 80,139 shares of common stock were excluded from the calculation of diluted net income per common share for the three -month periods ended December 31, 2021 and 2020, respectively, because their effect was antidilutive. There were no antidilutive restricted stock awards excluded from the calculation of diluted net income per share for the three -month periods ended December 31, 2021 and 2020. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 3 Months Ended |
Dec. 31, 2021 | |
Supplemental Disclosures of Cash Flow Information | |
Supplemental Disclosures of Cash Flow Information | 6. Supplemental Disclosures of Cash Flow Information Three Months Ended December 31, 2021 2020 (In thousands) Cash payments for: Interest $ 1,866 $ 2,180 Income taxes (net of refunds received) (5) — Noncash investing and financing activities: Transfers from loans to other real estate owned — 370 Noncash exercise of stock options — 48 Promissory note issued in acquisition of minority interests in Q2 — 1,296 |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | 3 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | 7. Fair Value Measurements and Disclosures about Fair Value of Financial Instruments FASB Accounting Standards Codification (“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 the lower of cost or fair value. The tables below present the balances of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis as of December 31, 2021 and September 30, 2021. Carrying Value Level 1 Level 2 Level 3 Total (In thousands) December 31, 2021: Assets Measured – Recurring Basis: Securities available for sale: Agency mortgage-backed $ — $ 9,129 $ — $ 9,129 Agency CMO — 13,372 — 13,372 Privately-issued CMO — 715 — 715 Privately-issued ABS — 723 — 723 SBA certificates — 2,018 — 2,018 Municipal — 193,167 — 193,167 Total securities available for sale $ — $ 219,124 $ — $ 219,124 Residential mortgage loans held for sale $ — $ 120,564 $ — $ 120,564 Derivative assets (included in other assets) $ — $ 421 $ 1,834 $ 2,555 Equity securities (included in other assets) $ 368 $ — $ — $ 368 Residential mortgage servicing rights $ — $ — $ 54,758 $ 54,758 Liabilities Measured – Recurring Basis: Derivative liabilities (included in other liabilities) $ — $ 200 $ 94 $ 294 Assets Measured – Nonrecurring Basis: Impaired loans: Residential real estate $ — $ — $ 2,674 $ 2,674 Commercial real estate — — 994 994 SBA commercial real estate — — 7,133 7,133 Multifamily — — 384 384 Commercial business — — 1,362 1,362 SBA commercial business — — 872 872 Consumer — — 232 232 Total impaired loans $ — $ — $ 13,651 $ 13,651 Single tenant net lease loans held for sale $ — $ — $ 15,656 $ 15,656 SBA loans held for sale $ — $ — $ 24,998 $ 24,998 SBA loan servicing rights $ — $ — $ 4,429 $ 4,429 Other real estate owned, held for sale: Former bank premises $ — $ — $ 1,728 $ 1,728 Total other real estate owned $ — $ — $ 1,728 $ 1,728 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) 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 $ — $ 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 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 at 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. Other than SBA loans held for sale (see discussion below), there have been no changes in the valuation techniques and related inputs used for assets measured at fair value on a recurring and nonrecurring basis during the three-month period ended December 31, 2021. 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. 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 three -month periods ended December 31, 2021 and 2020: Three Months Ended December 31, (In thousands) 2021 2020 Beginning balance $ 1,567 $ 14,937 Unrealized gains recognized in earnings, net of settlements 173 (3,522) Ending balance $ 1,740 $ 11,415 The realized and unrealized gains 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 three-month periods ended December 31, 2021 and 2020 attributable to Level 3 derivative assets and liabilities held at the balance sheet date were $1.7 million and $11.4 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 December 31, 2021 and September 30, 2021. Range of Inputs Range of Inputs Significant (Weighted Average) (Weighted Average) Unobservable December 31, September 31, Financial Instrument Inputs 2021 2021 Interest rate lock commitments Pull-through rate 53% - 100% (81%) 58% - 100% (83%) Direct costs to close 0.27% - 1.80% (0.98%) 0.37% - 1.74% (0.86%) Mortgage Servicing Rights . 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 December 31, 2021 and September 30, 2021, 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 generally then discounted by management in order to reflect management’s estimate of the fair value of the collateral given the current market conditions and the condition of the collateral. At December 31, 2021 and September 30, 2021, the significant unobservable inputs used in the fair value measurement of impaired loans included discounts from appraised value ranging from 0.0% to 100.0%, for both periods, and estimated costs to sell the collateral ranging from 0.0% to 6.0% and 0.0% to 26.0%, respectively. During the three -month period ended December 31, 2021, the Company recognized provisions for loan losses on impaired loans of $691,000. The Company recognized no provision for loan losses on impaired loans for the three-month period ended December 31, 2020. SBA Loan Servicing Rights 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 generally discounted by management in order to reflect management’s estimate of the fair value of the property given current market conditions and the condition of the property. At December 31, 2021 and September 30, 2021, 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%. The Company did not recognize any charges to write down other real estate owned to fair value for the three -month periods ended December 31, 2021 and 2020. There were no transfers into or out of the Company’s Level 3 financial assets of the fair value hierarchy for the three -month periods ended December 31, 2021. 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. 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 December 31, 2021 and September 30, 2021. 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 December 31, 2021 and September 30, 2021. Aggregate Aggregate Principal Fair Value Balance December 31, December 31, (In thousands) 2021 2021 Difference Residential mortgage loans held for sale $ 120,564 $ 117,096 $ 3,468 Aggregate Aggregate Principal Fair Value Balance September 30, September 30, (In thousands) 2021 2021 Difference Residential mortgage loans held for sale $ 167,813 $ 163,158 $ 4,655 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 three -month periods ended December 31, 2021 and 2020: Three Months Ended December 31, (In thousands) 2021 2020 Gains – included in mortgage banking income $ 1,623 $ 8,608 Interest income 994 1,833 $ 2,617 $ 10,441 GAAP requires disclosure of fair value information about financial instruments for interim reporting periods, whether or not recognized in the consolidated balance sheet. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows. Fair Value Measurements Using: Carrying Using: Amount Level 1 Level 2 Level 3 (In thousands) December 31, 2021: Financial assets: Cash and due from banks $ 16,543 $ 16,543 $ — $ — Interest-bearing deposits with banks 24,049 24,049 — — Interest-bearing time deposits 1,973 — 1,973 — Securities available for sale 219,124 — 219,124 — Securities held to maturity 1,802 — 1,990 — Residential mortgage loans held for sale 120,564 — 120,564 — Single tenant net lease loans held for sale 15,656 — — 15,656 SBA loans held for sale 24,998 — — 28,223 Loans, net 1,142,655 — — 1,196,330 FRB and FHLB stock 19,258 N/A N/A N/A Accrued interest receivable 6,837 — 6,837 — Residential mortgage loan servicing rights 54,758 — — 54,758 SBA loan servicing rights 4,429 — — 4,436 Derivative assets (included in other assets) 2,255 — 421 1,834 Equity securities (included in other assets) 368 368 — — Financial liabilities: Deposits 1,267,035 — — 1,266,985 Borrowings from FHLB 258,377 — 252,354 — Subordinated note 19,881 — 20,924 — Accrued interest payable 251 — 251 — Advance payments by borrowers for taxes and insurance 1,205 — 1,205 — Derivative liabilities (included in other liabilities) 294 — 200 94 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 — Residential mortgage loan servicing rights 49,579 — — 49,579 SBA loan servicing rights 4,447 — — 4,646 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 The methods and assumptions used to estimate fair value are described as follows: Carrying amount is the estimated fair value for cash and cash equivalents, interest-bearing time deposits, accrued interest receivable and payable, advance payments by borrowers for taxes and insurance, demand deposits and other transaction accounts. The fair value of loans (excluding loans held for sale), fixed-maturity certificates of deposit, and borrowed funds is based on discounted cash flows using current market rates applied to the estimated life and credit risk of the instrument. It is not practicable to determine the fair value of FHLB and other restricted stock due to restrictions placed on its transferability. The methods and assumptions used to estimate the fair value of investment securities, loans held for sale, loan servicing rights, and derivative assets and liabilities are discussed previously in Note 7. The methods utilized to measure the fair value of financial instruments at December 31, 2021 and September 30, 2021 represent an approximation of exit price, but an actual exit price may differ. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 3 Months Ended |
Dec. 31, 2021 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | 8. Employee Stock Ownership Plan On October 6, 2008, the Company established a leveraged employee stock ownership plan (“ESOP”) covering substantially all employees. The ESOP trust acquired 203,363 shares of Company common stock at a cost of $10.00 per share financed by a term loan with the Company. The employer loan and the related interest income are not recognized in the consolidated financial statements because the debt is serviced from Company contributions. Dividends payable on allocated shares are charged to retained earnings and are satisfied by the allocation of cash dividends to participant accounts or by utilizing the dividends as additional debt service on the ESOP loan. Dividends payable on unallocated shares are not considered dividends for financial reporting purposes. Shares held by the ESOP trust are allocated to participant accounts based on the ratio of the current year principal and interest payments to the total of the current year and future years’ principal and interest to be paid on the employer loan. Compensation expense is recognized based on the average fair value of shares released for allocation to participant accounts during the year with a corresponding credit to stockholders’ equity. The ESOP loan was repaid in full during the quarter ended December 31, 2015 and all shares have been allocated to participants in the plan; therefore, no compensation expense was recognized for the three -month periods ended December 30, 2021 and 2020. The ESOP trust held 335,958 and 335,958 shares of Company common stock at December 31, 2021 and September 30, 2021, respectively. |
Stock Based Compensation Plans
Stock Based Compensation Plans | 3 Months Ended |
Dec. 31, 2021 | |
Stock Based Compensation Plans | |
Stock Based Compensation Plans | 9. Stock Based Compensation Plans The Company maintains three equity incentive plans under which stock options and restricted stock have been or may 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, consisting of 267,043 stock options and 89,015 shares of restricted stock. At December 31, 2021, there were no remaining shares of the Company’s common stock available for issuance under the 2010 Plan. At December 31, 2021, 4,560 shares of the Company’s common stock were available for issuance under the 2016 Plan, of which 1,500 shares were available for restricted stock and 3,060 shares were available for stock options. At December 31, 2021, 173,058 shares of the Company's common stock were available for issuance under the 2021 Plan, of which 43,265 shares were available for restricted stock and 129,793 shares were available for stock options. The Company generally issues new shares under the 2016 and 2021 Plans from its authorized but unissued shares. The Company accounts for any forfeitures as they occur, and any previously recognized compensation cost for an award is reversed in the period the award is forfeited. 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 three-month period ended December 31, 2021 was determined using the following assumptions: Expected dividend yield 2.32 % Risk-free interest rate 1.55 % Expected volatility 27.0 % Expected life of options 7.1 years Weighted average fair value at grant date $ 7.03 A summary of stock option activity as of December 31, 2021, and changes during the three-month period then ended is presented below. Weighted Average Remaining Weighted Contractual Aggregate Number of Average Term Intrinsic Shares Exercise Price (Years) Value (Dollars in thousands, except per share data) Outstanding at beginning of period 217,074 $ 16.58 Granted 137,250 26.72 Exercised — — Forfeited or expired — — Outstanding at end of period 354,324 $ 20.51 7.5 $ 2,132 Vested and expected to vest 354,324 $ 20.51 7.5 $ 2,132 Exercisable at end of period 168,419 $ 15.11 5.4 $ 1,901 There were no stock options exercised during the three-month period ended December 31, 2021. The intrinsic value of stock options exercised during the three-month period ended December 31, 2020 was $29,000. The Company recognized compensation expense related to stock options of $52,000 and $23,000 for the three-month periods ended December 31, 2021 and 2020, respectively. At December 31, 2021, there was $1.0 million of unrecognized compensation expense related to nonvested stock options. The compensation expense is expected to be recognized over a weighted average period of 4.73 years. There was no cash received or tax benefit from the exercise of stock options during the three-month periods ended December 31, 2021 and 2020. 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. Compensation expense related to restricted stock recognized for the three -month periods ended December 31, 2021 and 2020 was $75,000 and $48,000, respectively. A summary of the Company’s nonvested restricted shares activity as of December 31, 2021 and changes during the three-month period then ended is presented below. Weighted Number Average of Grant Date Shares Fair Value Nonvested at October 1, 2021 17,799 $ 16.72 Granted 45,750 $ 26.72 Vested (12,225) $ 14.88 Forfeited — $ — Nonvested at December 31, 2021 51,324 $ 26.07 There were 12,225 restricted shares vested during the three-month period ended December 31, 2021 with a total fair value of $327,000. There were 13,125 restricted shares that vested during the three-month period ended December 31, 2020 with a total fair value of $277,000. At December 31, 2021, there was $1.3 million of unrecognized compensation expense related to nonvested restricted shares. The compensation expense is expected to be recognized over a weighted average period of 4.67 years. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Dec. 31, 2021 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 10. Derivative Financial Instruments 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 loans 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 accompanying consolidated balance sheets 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 December 31, 2021 and September 30, 2021, the Company had cash collateral posted with certain derivative counterparties of $2.4 million and $2.4 million, respectively, against its derivative obligations. Cash collateral related to derivative contracts is recorded in interest-bearing deposits with banks or other assets in the consolidated balance sheets. The tables below provide information on the Company’s derivative financial instruments as of December 31, 2021 and September 30, 2021. Notional Asset Liability Amount Derivatives Derivatives December 31, December 31, December 31, (In thousands) 2021 2021 2021 Interest rate lock commitments $ 292,782 $ 1,834 $ 94 Forward mortgage loan sale contracts 220,500 421 200 $ 513,282 $ 2,255 $ 294 Notional Asset Liability Amount Derivatives Derivatives September 30, September 30, September 30, (In thousands) 2021 2021 2021 Interest rate lock commitments $ 331,178 $ 2,167 $ 600 Forward mortgage loan sale contracts 291,750 1,465 35 $ 622,928 $ 3,632 $ 635 Income (loss) related to derivative financial instruments included in mortgage banking income in the accompanying consolidated statements of income for the three-month periods ended December 31, 2021 and 2020 is as follows: Three Months Ended December 31, (In thousands) 2021 2020 Interest rate lock commitments $ 173 $ (3,522) Forward mortgage loan sale contracts 695 (7,363) $ 868 $ (10,885) |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Dec. 31, 2021 | |
Regulatory Capital | |
Regulatory Capital | 11. Regulatory Capital 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 and 2020. The Bank met all capital adequacy requirements to which it was subject as of December 31, 2021 and September 30, 2021. As of December 31, 2021, the most recent notification from the Federal Reserve Bank 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. The Company’s and Bank’s actual capital amounts and ratios are also presented in the table. The Company is not subject to the Federal Reserve Bank’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 Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2021: Total capital (to risk-weighted assets): Consolidated $ 195,652 13.84 % $ 113,093 8.00 % N/A N/A Bank 186,930 13.25 112,868 8.00 $ 141,086 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 160,991 11.39 % $ 84,820 6.00 % N/A N/A Bank 172,150 12.20 84,651 6.00 $ 112,868 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 160,991 11.39 % $ 63,615 4.50 % N/A N/A Bank 172,150 12.20 63,489 4.50 $ 91,706 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 160,991 9.81 % $ 65,676 4.00 % N/A N/A Bank 172,150 10.28 66,982 4.00 $ 83,728 5.00 % 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 % |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2021 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 12. Recent Accounting Pronouncements The following are summaries of recently issued or adopted accounting pronouncements that impact the accounting and reporting practices of the Company: 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. 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. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting | |
Segment Reporting | 13. Segment Reporting 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 that are 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 by 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 Banking Lending Banking Other Totals (In thousands) Three Months Ended December 31, 2021: Net interest income (loss) $ 11,806 $ 1,875 $ 533 $ (311) $ 13,903 Provision (credit) for loan losses (144) 670 — — 526 Net interest income (loss) after provision 11,950 1,205 533 (311) 13,377 Net gains on sales of loans, SBA — 1,636 — — 1,636 Mortgage banking income (4) — 12,748 — 12,744 Noninterest income 1,942 1,901 12,748 — 16,591 Noninterest expense (income) 9,539 2,236 13,134 (57) 24,852 Income (loss) before taxes 4,353 870 147 (254) 5,116 Income tax expense (benefit) 650 265 46 (150) 811 Segment profit (loss) 3,703 605 101 (104) 4,305 Non cash items: Depreciation and amortization 534 8 48 16 606 Segment assets at December 31, 2021 1,558,826 157,481 185,428 (137,146) 1,764,589 Core SBA Mortgage Consolidated Banking Lending Banking Other Totals (In thousands) Three Months Ended December 31, 2020: Net interest income (loss) $ 11,165 $ 2,147 $ 731 $ (304) $ 13,739 Provision (credit) for loan losses 702 (34) — — 668 Net interest income (loss) after provision 10,463 2,181 731 (304) 13,071 Net gains on sales of loans, SBA — 1,267 — — 1,267 Mortgage banking income (2) — 43,231 — 43,229 Noninterest income 1,552 1,385 43,246 — 46,183 Noninterest expense (income) 8,286 2,746 33,544 (174) 44,402 Income (loss) before taxes 3,729 820 10,433 (130) 14,852 Income tax expense (benefit) 689 105 3,852 (119) 4,527 Segment profit (loss) 3,040 715 6,581 (11) 10,325 Non cash items: Depreciation and amortization 461 11 59 17 548 Segment assets at December 31, 2021 1,485,523 288,824 376,278 (277,714) 1,872,911 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Dec. 31, 2021 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | 14. 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 three-month periods ended December 31, 2021 and 2020: Three Months Ended December 31, 2021 2020 Service charges on deposit accounts $ 434 $ 396 ATM and interchange fees 679 632 Investment advisory income 188 134 Other 24 23 Revenue from contracts with customers 1,325 1,185 Gain on sale of SBA loans 1,636 1,267 Mortgage banking income 12,744 43,229 Increase in cash value of life insurance 254 186 Real estate lease income 148 147 Other 484 169 Other noninterest income 15,266 44,998 Total noninterest income $ 16,591 $ 46,183 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 Other Income |
Leases
Leases | 3 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | 15. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or 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 the leases in five year increments. The Company has adopted FASB ASC 842 and all subsequent updates that modified FASB ASC 842. 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. The Company’s right to use an asset over the life of a lease is recorded as an ROU asset included in other assets other liabilities 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, with renewal terms that can extend the lease term from one Lease expense for the three–month periods ended December 31, 2021 and 2020 was $305,000 and $551,000, respectively. The components of lease expense for the three-month periods ended December 31, 2021 and 2020 were as follows: 2021 2020 Operating lease cost $ 95 $ 374 Short-term lease cost 210 177 $ 305 $ 551 Future minimum commitments due under these lease agreements as of December 31, 2021 are as follows, including renewal options that are reasonably certain to be exercised: 2022 (remaining nine months) $ 281 2023 333 2024 254 2025 203 2026 203 Thereafter 5,202 Total lease payments 6,476 Less imputed interest (1,908) Total $ 4,568 The lease term and discount rate at December 31, 2021 and September 30, 2021 were as follows: December 31, September 30, 2021 2021 Weighted-average remaining lease term (years) 24.6 21.5 Weighted-average discount rate 2.85 % 2.53 % Supplemental cash flow information for the three–month periods ended December 31, 2021 and 2020 related to leases was as follows: 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 107 $ 390 ROU assets obtained in exchange for lease obligations: Operating leases $ — $ 1,843 |
Mortgage Banking Income
Mortgage Banking Income | 3 Months Ended |
Dec. 31, 2021 | |
Mortgage Banking Income | |
Mortgage Banking Income | 16. Mortgage Banking Income The components of mortgage banking income for the three-month periods ended December 31, 2021 and 2020 were as follows: Three Months Ended December 31, 2021 2020 Origination and sale of mortgage loans (1) $ 4,655 $ 42,708 Mortgage brokerage income 331 15 Net change in fair value of loans held for sale and interest rate lock commitments (222) (2,417) Realized and unrealized hedging gains (losses) 695 (7,363) Capitalized residential mortgage loan servicing rights 4,504 12,872 Net change in fair value of residential mortgage loan servicing rights 675 (3,065) Provisions for loan repurchases and indemnifications (14) (463) Net loan servicing income 2,120 942 Total mortgage banking income $ 12,744 $ 43,229 (1) Includes origination fees and realized gains and losses on the sale of mortgage loans in the secondary market. |
Loss Contingency
Loss Contingency | 3 Months Ended |
Dec. 31, 2021 | |
Loss Contingency | |
Loss Contingency | 17. Loss Contingency 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 reached a verbal settlement with the claimant, and the Company has accrued a loss contingency for this pending settlement at December 31, 2021, the amount of which had an immaterial effect on the consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Dec. 31, 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 Cost Gain Losses Value (In thousands) December 31, 2021: Securities available for sale: Agency mortgage-backed $ 8,991 $ 238 $ 100 $ 9,129 Agency CMO 13,255 161 44 13,372 Privately-issued CMO 695 27 7 715 Privately-issued ABS 681 43 1 723 SBA certificates 2,033 5 20 2,018 Municipal bonds 181,798 11,479 110 193,167 Total securities available for sale $ 207,453 $ 11,953 $ 282 $ 219,124 Securities held to maturity: Agency mortgage-backed $ 59 $ 3 $ — $ 62 Municipal bonds 1,743 185 — 1,928 Total securities held to maturity $ 1,802 $ 188 $ — $ 1,990 Gross Gross Amortized Unrealized Unrealized Fair Cost Gain Losses Value (In thousands) 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 |
Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity | The amortized cost and fair value of investment securities as of December 31, 2021 by contractual maturity are shown below. CMO, ABS, SBA certificates, and mortgage-backed securities which do not have a single maturity date are shown separately. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Due within one year $ 9,255 $ 9,330 $ 265 $ 286 Due after one year through five years 25,384 26,390 879 962 Due after five years through ten years 35,348 37,632 599 680 Due after ten years 111,811 119,815 — — CMO 13,950 14,087 — — ABS 681 723 — — SBA certificates 2,033 2,018 — — Mortgage-backed securities 8,991 9,129 59 62 $ 207,453 $ 219,124 $ 1,802 $ 1,990 |
Schedule of Investment Securities With Gross Unrealized Losses | Information pertaining to investment securities with gross unrealized losses at December 31, 2021 and September 30, 2021, 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) December 31, 2021: Securities available for sale: Continuous loss position less than twelve months: Agency mortgage-backed 2 $ 4,235 $ 100 Agency CMO 4 2,683 44 SBA certificates 1 1,898 19 Municipal bonds 7 6,433 53 Total less than twelve months 14 15,249 216 Continuous loss position more than twelve months: Privately-issued CMO 1 22 7 Privately-issued ABS 1 350 1 SBA certificates 1 81 1 Municipal bonds 1 1,943 57 Total more than twelve months 4 2,396 66 Total securities available for sale 18 $ 17,645 $ 282 September 30, 2021: Securities available for sale: Continuous loss position less than twelve months: Agency mortgage-backed securities 1 $ 3,056 $ 52 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 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Loans and Allowance for Loan Losses | |
Schedule of Loans | Loans at December 31, 2021 and September 30, 2021 consisted of the following: December 31, September 30, 2021 2021 (In thousands) Real estate mortgage: 1-4 family residential $ 262,920 $ 241,425 Commercial 144,457 149,600 Single tenant net lease 461,123 403,692 SBA 62,729 62,805 Multifamily residential 38,738 40,324 Residential construction 9,962 8,330 Commercial construction 3,644 2,717 Land and land development 10,924 10,217 Commercial business 62,931 59,883 SBA commercial business (1) 69,647 80,400 Consumer 30,211 30,563 Total loans 1,156,656 1,089,956 Deferred loan origination fees and costs, net (2) 779 281 Allowance for loan losses (14,780) (14,301) Loans, net $ 1,142,655 $ 1,075,936 (1) Includes $46.0 million and $56.7 million of loans originated under the SBA’s Paycheck Protection Program (“PPP”) at December 31, 2021 and September 30, 2021, respectively. (2) Includes $332,000 and $757,000 of net deferred loan fees related to PPP loans as of December 31, 2021 and September 30, 2021, respectively. |
Schedule of Components of Recorded Investment in Loans | The following table provides the components of the recorded investment in loans as of December 31, 2021: Principal Accrued Net Deferred Recorded Loan Interest Loan Origination Investment Recorded Investment in Loans: Balance Receivable Fees and Costs in Loans (In thousands) Recorded Investment in Loans: Residential real estate $ 262,920 $ 872 $ 56 $ 263,848 Commercial real estate 144,457 464 (210) 144,711 Single tenant net lease 461,123 1,496 (84) 462,535 SBA commercial real estate 62,729 456 1,119 64,304 Multifamily 38,738 70 (47) 38,761 Residential construction 9,962 17 (47) 9,932 Commercial construction 3,644 9 (31) 3,622 Land and land development 10,294 20 (11) 10,303 Commercial business 62,931 172 50 63,153 SBA commercial business 69,647 817 — 70,464 Consumer 30,211 114 (16) 30,309 $ 1,156,656 $ 4,507 $ 779 $ 1,161,942 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 $ 2,675 $ 261,173 $ 263,848 Commercial real estate 994 143,717 144,711 Single tenant net lease — 462,535 462,535 SBA commercial real estate 7,467 56,837 64,304 Multifamily 384 38,377 38,761 Residential construction — 9,932 9,932 Commercial construction — 3,622 3,622 Land and land development — 10,303 10,303 Commercial business 1,362 61,791 63,153 SBA commercial business 1,320 69,144 70,464 Consumer 230 30,079 30,309 $ 14,432 $ 1,147,510 $ 1,161,942 The following table provides the components of the recorded investment in loans as of September 30, 2021: Net Deferred Accrued Loan Recorded Principal Loan Interest Origination Investment Recorded Investment in Loans: Balance Receivable Fees and Costs in Loans (In thousands) Recorded Investment in Loans: 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 |
Schedule of Impaired Loans Individually Evaluated for Impairment | The following table presents impaired loans individually evaluated for impairment as of December 31, 2021 and for the three months ended December 31, 2021 and 2020. The Company did not recognize any interest income on impaired loans using the cash receipts method during the three-month periods ended December 31, 2021 and 2020. Three Months Ended At December 31, 2021 December 31, 2021 2021 2020 2020 Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income Investment Balance Allowance Investment Recognized Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 2,674 $ 3,190 $ — $ 3,444 $ 16 $ 5,294 $ 27 Commercial real estate 994 1,067 — 1,079 7 1,176 6 Single tenant net lease — — — — — — — SBA commercial real estate 6,665 7,561 — 8,102 — 2,960 — Multifamily 384 423 — 428 — 697 — Residential construction — — — — — — — Commercial construction — — — — — — — Land and land development — — — — — 1 — Commercial business 1,362 1,463 — 1,511 2 1,670 — SBA commercial business 470 630 — 502 — 416 — Consumer 92 85 — 87 — 101 1 $ 12,641 $ 14,419 $ — $ 15,153 $ 25 $ 12,315 $ 34 Loans with an allowance recorded: Residential real estate $ — $ — $ — $ 253 $ — $ 65 $ — Commercial real estate — — — — — — — Single tenant net lease — — — — — — — SBA commercial real estate 801 1,062 333 1,025 — 3,788 — Multifamily — — — — — — — Residential construction — — — — — — — Commercial construction — — — — — — — Land and land development — — — — — — — Commercial business — — — — — — — SBA commercial business 850 943 448 219 — 433 — Consumer 140 140 — 138 — 235 — $ 1,791 $ 2,145 $ 781 $ 1,635 $ — $ 4,521 $ — Total: Residential real estate $ 2,674 $ 3,190 $ — $ 3,697 $ 16 $ 5,359 $ 27 Commercial real estate 994 1,067 — 1,079 7 1,176 6 Single tenant net lease — — — — — — — SBA commercial real estate 7,466 8,623 333 9,127 — 6,748 — Multifamily 384 423 — 428 — 697 — Residential construction — — — — — — — Commercial construction — — — — — — — Land and land development — — — — — 1 — Commercial business 1,362 1,463 — 1,511 2 1,670 — SBA commercial business 1,320 1,573 448 721 — 849 — Consumer 232 225 — 225 — 336 1 $ 14,432 $ 16,564 $ 781 $ 16,788 $ 25 $ 16,836 $ 34 The following table presents impaired loans individually evaluated for impairment as of September 30, 2021. Unpaid Recorded Principal Related Investment Balance Allowance (In thousands) Loans with no related allowance recorded: Residential real estate $ 3,002 $ 3,551 $ — Commercial real estate 1,021 1,092 — Single tenant net lease — — — SBA commercial real estate 8,184 8,873 — Multifamily 482 539 — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 1,476 1,559 — SBA commercial business 1,278 1,534 — Consumer 103 97 — $ 15,546 $ 17,245 $ — Loans with an allowance recorded: Residential real estate $ 65 $ 65 $ — Commercial real estate — — — Single tenant net lease — — — SBA commercial real estate 969 1,394 114 Multifamily — — — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business — — — SBA commercial business 18 21 18 Consumer 145 144 1 $ 1,197 $ 1,624 $ 133 Total: Residential real estate $ 3,067 $ 3,616 $ — Commercial real estate 1,021 1,092 — Single tenant net lease — — — SBA commercial real estate 9,153 10,267 114 Multifamily 482 539 — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 1,476 1,559 — SBA commercial business 1,296 1,555 18 Consumer 248 241 1 $ 16,743 $ 18,869 $ 133 |
Schedule of Nonperforming Loans | 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 December 31, 2021 and September 30, 2021: At December 31, 2021 At September 30, 2021 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 $ 1,520 $ — $ 1,520 $ 1,894 $ — $ 1,894 Commercial real estate 579 — 579 599 — 599 Single tenant net lease — — — — — — SBA commercial real estate 7,466 — 7,466 9,153 472 9,625 Multifamily 384 — 384 482 — 482 Residential construction — — — — — — Commercial construction — — — — — — Land and land development — — — — — — Commercial business 1,265 — 1,265 1,370 — 1,370 SBA commercial business 1,320 — 1,320 1,296 — 1,296 Consumer 194 — 194 206 — 206 Total $ 12,728 $ — $ 12,728 $ 15,000 $ 472 $ 15,472 |
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 December 31, 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 $ 858 $ 308 $ 253 $ 1,419 $ 262,429 $ 263,848 Commercial real estate 4 — 579 583 144,128 144,711 Single tenant net lease — — — — 462,535 462,535 SBA commercial real estate — — 3,119 3,119 61,185 64,304 Multifamily — — — — 38,761 38,761 Residential construction — — — — 9,932 9,932 Commercial construction — — — — 3,622 3,622 Land and land development — — — — 10,303 10,303 Commercial business — — 3 3 63,150 63,153 SBA commercial business 273 — 993 1,266 69,198 70,464 Consumer 44 45 54 143 30,166 30,309 Total $ 1,179 $ 353 $ 5,001 $ 6,533 $ 1,155,409 $ 1,161,942 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 |
Schedule of Investment in Loans by Risk Category | Special December 31, 2021: Pass Mention Substandard Doubtful Loss Total (In thousands) Residential real estate $ 262,076 $ — $ 1,604 $ 168 $ — $ 263,848 Commercial real estate 142,270 — 2,441 — — 144,711 Single tenant net lease 462,535 — — — — 462,535 SBA commercial real estate 50,931 1,154 10,592 1,627 — 64,304 Multifamily 38,377 — 384 — — 38,761 Residential construction 9,932 — — — — 9,932 Commercial construction 3,622 — — — — 3,622 Land and land development 10,303 — — — — 10,303 Commercial business 61,757 — 1,396 — — 63,153 SBA commercial business 59,021 7,100 4,323 20 — 70,464 Consumer 30,255 — 54 — — 30,309 Total $ 1,131,079 $ 8,254 $ 20,794 $ 1,815 $ — $ 1,161,942 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 |
Schedule of Investment in Troubled Debt Restructurings by Class of Loan and Accrual Status | The following table summarizes the Company’s recorded investment in TDRs at December 31, 2021 and September 30, 2021. There was no specific reserve included in the allowance for loan losses related to TDRs at December 31, 2021 and September 30, 2021. Accruing Nonaccrual Total (In thousands) December 31, 2021: Residential real estate $ 1,154 $ — $ 1,154 Commercial real estate 415 456 871 SBA commercial real estate — 1,626 1,626 Multifamily — 384 384 Commercial business 97 1,262 1,359 Consumer 38 — 38 Total $ 1,704 $ 3,728 $ 5,432 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 |
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 three -month periods ended December 31, 2021 and 2020 is as follows: 2021 2020 (In thousands) Balance, beginning of period $ 4,447 $ 3,748 Servicing rights capitalized 346 327 Amortization (288) (202) Direct write-offs (35) (183) Change in valuation allowance (41) 32 Balance, end of period $ 4,429 $ 3,722 |
Mortgage Servicing Rights. | |
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 three -month periods ended December 31, 2021 and 2020 were as follows: 2021 2020 (In thousands) Fair value, beginning of period $ 49,579 $ 21,703 Servicing rights capitalized 4,504 12,872 Changes in fair value related to: Loan repayments (2,492) (1,816) Change in valuation model inputs or assumptions 3,167 (1,249) Balance, end of period $ 54,758 $ 31,510 |
Schedule of Key Assumptions Used to Estimate The Fair Value | Range of Assumption Range of Assumption (Weighted Average) (Weighted Average) Assumption December 31, 2021 September 30, 2021 Discount rate 8.50% to 10.00 % ( 8.50% to 10.00% (8.51%) Prepayment rate 6.02% to 44.91% (8.72%) 6.04% to 43.27% (10.00%) |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Schedule of deposits | Deposits at December 31, 2021 and September 30, 2021 consisted of the following: December 31, September 30, 2021 2021 (In thousands) Noninterest-bearing demand deposits $ 287,449 $ 291,039 NOW accounts 325,676 315,169 Money market accounts 236,999 222,972 Savings accounts 166,102 162,033 Retail time deposits 130,228 136,309 Brokered time deposits — 70,058 Reciprocal time deposits 120,581 30,000 Total $ 1,267,035 $ 1,227,580 |
Supplemental Disclosure for N_2
Supplemental Disclosure for Net Income Per Share (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Supplemental Disclosure for Net Income Per Share | |
Schedule of net income per share information | Net income per share information is presented below for the three -month periods ended December 31, 2021 and 2020. All share and per share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. Three Months Ended December 31, (In thousands, except share and per share data) 2021 2020 Basic: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 4,305 $ 9,923 Shares: Weighted average common shares outstanding, basic 7,116,790 7,101,183 Net income per common share, basic $ 0.60 $ 1.40 Diluted: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 4,305 $ 9,923 Shares: Weighted average common shares outstanding, basic 7,116,790 7,101,183 Add: Dilutive effect of outstanding options 81,177 42,441 Add: Dilutive effect of restricted stock 9,243 10,482 Weighted average common shares outstanding, as adjusted 7,207,210 7,154,106 Net income per common share, diluted $ 0.60 $ 1.39 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Supplemental Disclosures of Cash Flow Information | |
Schedule Of supplemental disclosures of cash flow information | Three Months Ended December 31, 2021 2020 (In thousands) Cash payments for: Interest $ 1,866 $ 2,180 Income taxes (net of refunds received) (5) — Noncash investing and financing activities: Transfers from loans to other real estate owned — 370 Noncash exercise of stock options — 48 Promissory note issued in acquisition of minority interests in Q2 — 1,296 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |
Schedule of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis | Carrying Value Level 1 Level 2 Level 3 Total (In thousands) December 31, 2021: Assets Measured – Recurring Basis: Securities available for sale: Agency mortgage-backed $ — $ 9,129 $ — $ 9,129 Agency CMO — 13,372 — 13,372 Privately-issued CMO — 715 — 715 Privately-issued ABS — 723 — 723 SBA certificates — 2,018 — 2,018 Municipal — 193,167 — 193,167 Total securities available for sale $ — $ 219,124 $ — $ 219,124 Residential mortgage loans held for sale $ — $ 120,564 $ — $ 120,564 Derivative assets (included in other assets) $ — $ 421 $ 1,834 $ 2,555 Equity securities (included in other assets) $ 368 $ — $ — $ 368 Residential mortgage servicing rights $ — $ — $ 54,758 $ 54,758 Liabilities Measured – Recurring Basis: Derivative liabilities (included in other liabilities) $ — $ 200 $ 94 $ 294 Assets Measured – Nonrecurring Basis: Impaired loans: Residential real estate $ — $ — $ 2,674 $ 2,674 Commercial real estate — — 994 994 SBA commercial real estate — — 7,133 7,133 Multifamily — — 384 384 Commercial business — — 1,362 1,362 SBA commercial business — — 872 872 Consumer — — 232 232 Total impaired loans $ — $ — $ 13,651 $ 13,651 Single tenant net lease loans held for sale $ — $ — $ 15,656 $ 15,656 SBA loans held for sale $ — $ — $ 24,998 $ 24,998 SBA loan servicing rights $ — $ — $ 4,429 $ 4,429 Other real estate owned, held for sale: Former bank premises $ — $ — $ 1,728 $ 1,728 Total other real estate owned $ — $ — $ 1,728 $ 1,728 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) 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 $ — $ 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 |
Schedule of reconciliation of derivative assets and liabilities measured at fair value on a recurring basis, Unobservable Input (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 three -month periods ended December 31, 2021 and 2020: Three Months Ended December 31, (In thousands) 2021 2020 Beginning balance $ 1,567 $ 14,937 Unrealized gains recognized in earnings, net of settlements 173 (3,522) Ending balance $ 1,740 $ 11,415 |
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 December 31, 2021 and September 30, 2021. Range of Inputs Range of Inputs Significant (Weighted Average) (Weighted Average) Unobservable December 31, September 31, Financial Instrument Inputs 2021 2021 Interest rate lock commitments Pull-through rate 53% - 100% (81%) 58% - 100% (83%) Direct costs to close 0.27% - 1.80% (0.98%) 0.37% - 1.74% (0.86%) |
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 December 31, 2021 and September 30, 2021. Aggregate Aggregate Principal Fair Value Balance December 31, December 31, (In thousands) 2021 2021 Difference Residential mortgage loans held for sale $ 120,564 $ 117,096 $ 3,468 Aggregate Aggregate Principal Fair Value Balance September 30, September 30, (In thousands) 2021 2021 Difference Residential mortgage loans held for sale $ 167,813 $ 163,158 $ 4,655 |
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 three -month periods ended December 31, 2021 and 2020: Three Months Ended December 31, (In thousands) 2021 2020 Gains – included in mortgage banking income $ 1,623 $ 8,608 Interest income 994 1,833 $ 2,617 $ 10,441 |
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 | Fair Value Measurements Using: Carrying Using: Amount Level 1 Level 2 Level 3 (In thousands) December 31, 2021: Financial assets: Cash and due from banks $ 16,543 $ 16,543 $ — $ — Interest-bearing deposits with banks 24,049 24,049 — — Interest-bearing time deposits 1,973 — 1,973 — Securities available for sale 219,124 — 219,124 — Securities held to maturity 1,802 — 1,990 — Residential mortgage loans held for sale 120,564 — 120,564 — Single tenant net lease loans held for sale 15,656 — — 15,656 SBA loans held for sale 24,998 — — 28,223 Loans, net 1,142,655 — — 1,196,330 FRB and FHLB stock 19,258 N/A N/A N/A Accrued interest receivable 6,837 — 6,837 — Residential mortgage loan servicing rights 54,758 — — 54,758 SBA loan servicing rights 4,429 — — 4,436 Derivative assets (included in other assets) 2,255 — 421 1,834 Equity securities (included in other assets) 368 368 — — Financial liabilities: Deposits 1,267,035 — — 1,266,985 Borrowings from FHLB 258,377 — 252,354 — Subordinated note 19,881 — 20,924 — Accrued interest payable 251 — 251 — Advance payments by borrowers for taxes and insurance 1,205 — 1,205 — Derivative liabilities (included in other liabilities) 294 — 200 94 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 — Residential mortgage loan servicing rights 49,579 — — 49,579 SBA loan servicing rights 4,447 — — 4,646 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 |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Stock Based Compensation Plans | |
Schedule of fair value of options granted | The fair value of options granted during the three-month period ended December 31, 2021 was determined using the following assumptions: Expected dividend yield 2.32 % Risk-free interest rate 1.55 % Expected volatility 27.0 % Expected life of options 7.1 years Weighted average fair value at grant date $ 7.03 |
Schedule of stock option activity | A summary of stock option activity as of December 31, 2021, and changes during the three-month period then ended is presented below. Weighted Average Remaining Weighted Contractual Aggregate Number of Average Term Intrinsic Shares Exercise Price (Years) Value (Dollars in thousands, except per share data) Outstanding at beginning of period 217,074 $ 16.58 Granted 137,250 26.72 Exercised — — Forfeited or expired — — Outstanding at end of period 354,324 $ 20.51 7.5 $ 2,132 Vested and expected to vest 354,324 $ 20.51 7.5 $ 2,132 Exercisable at end of period 168,419 $ 15.11 5.4 $ 1,901 |
Schedule of nonvested restricted shares activity | A summary of the Company’s nonvested restricted shares activity as of December 31, 2021 and changes during the three-month period then ended is presented below. Weighted Number Average of Grant Date Shares Fair Value Nonvested at October 1, 2021 17,799 $ 16.72 Granted 45,750 $ 26.72 Vested (12,225) $ 14.88 Forfeited — $ — Nonvested at December 31, 2021 51,324 $ 26.07 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Derivative Financial Instruments | |
Schedule of derivative financial instruments | The tables below provide information on the Company’s derivative financial instruments as of December 31, 2021 and September 30, 2021. Notional Asset Liability Amount Derivatives Derivatives December 31, December 31, December 31, (In thousands) 2021 2021 2021 Interest rate lock commitments $ 292,782 $ 1,834 $ 94 Forward mortgage loan sale contracts 220,500 421 200 $ 513,282 $ 2,255 $ 294 Notional Asset Liability Amount Derivatives Derivatives September 30, September 30, September 30, (In thousands) 2021 2021 2021 Interest rate lock commitments $ 331,178 $ 2,167 $ 600 Forward mortgage loan sale contracts 291,750 1,465 35 $ 622,928 $ 3,632 $ 635 |
Schedule of Income (loss) related to derivative financial instruments | Three Months Ended December 31, (In thousands) 2021 2020 Interest rate lock commitments $ 173 $ (3,522) Forward mortgage loan sale contracts 695 (7,363) $ 868 $ (10,885) |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Regulatory Capital | |
Schedule Of Actual capital amounts and ratios | Minimum To Be Well Capitalized Under Minimum for Capital Prompt Corrective Actual Adequacy Purposes: Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2021: Total capital (to risk-weighted assets): Consolidated $ 195,652 13.84 % $ 113,093 8.00 % N/A N/A Bank 186,930 13.25 112,868 8.00 $ 141,086 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 160,991 11.39 % $ 84,820 6.00 % N/A N/A Bank 172,150 12.20 84,651 6.00 $ 112,868 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 160,991 11.39 % $ 63,615 4.50 % N/A N/A Bank 172,150 12.20 63,489 4.50 $ 91,706 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 160,991 9.81 % $ 65,676 4.00 % N/A N/A Bank 172,150 10.28 66,982 4.00 $ 83,728 5.00 % 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 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting | |
Schedule of sum of the segment amounts and consolidated totals | Core SBA Mortgage Consolidated Banking Lending Banking Other Totals (In thousands) Three Months Ended December 31, 2021: Net interest income (loss) $ 11,806 $ 1,875 $ 533 $ (311) $ 13,903 Provision (credit) for loan losses (144) 670 — — 526 Net interest income (loss) after provision 11,950 1,205 533 (311) 13,377 Net gains on sales of loans, SBA — 1,636 — — 1,636 Mortgage banking income (4) — 12,748 — 12,744 Noninterest income 1,942 1,901 12,748 — 16,591 Noninterest expense (income) 9,539 2,236 13,134 (57) 24,852 Income (loss) before taxes 4,353 870 147 (254) 5,116 Income tax expense (benefit) 650 265 46 (150) 811 Segment profit (loss) 3,703 605 101 (104) 4,305 Non cash items: Depreciation and amortization 534 8 48 16 606 Segment assets at December 31, 2021 1,558,826 157,481 185,428 (137,146) 1,764,589 Core SBA Mortgage Consolidated Banking Lending Banking Other Totals (In thousands) Three Months Ended December 31, 2020: Net interest income (loss) $ 11,165 $ 2,147 $ 731 $ (304) $ 13,739 Provision (credit) for loan losses 702 (34) — — 668 Net interest income (loss) after provision 10,463 2,181 731 (304) 13,071 Net gains on sales of loans, SBA — 1,267 — — 1,267 Mortgage banking income (2) — 43,231 — 43,229 Noninterest income 1,552 1,385 43,246 — 46,183 Noninterest expense (income) 8,286 2,746 33,544 (174) 44,402 Income (loss) before taxes 3,729 820 10,433 (130) 14,852 Income tax expense (benefit) 689 105 3,852 (119) 4,527 Segment profit (loss) 3,040 715 6,581 (11) 10,325 Non cash items: Depreciation and amortization 461 11 59 17 548 Segment assets at December 31, 2021 1,485,523 288,824 376,278 (277,714) 1,872,911 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Dec. 31, 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 three-month periods ended December 31, 2021 and 2020: Three Months Ended December 31, 2021 2020 Service charges on deposit accounts $ 434 $ 396 ATM and interchange fees 679 632 Investment advisory income 188 134 Other 24 23 Revenue from contracts with customers 1,325 1,185 Gain on sale of SBA loans 1,636 1,267 Mortgage banking income 12,744 43,229 Increase in cash value of life insurance 254 186 Real estate lease income 148 147 Other 484 169 Other noninterest income 15,266 44,998 Total noninterest income $ 16,591 $ 46,183 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Leases | |
Schedule of components of lease | 2021 2020 Operating lease cost $ 95 $ 374 Short-term lease cost 210 177 $ 305 $ 551 |
Schedule of future minimum commitments due under the lease agreements | Future minimum commitments due under these lease agreements as of December 31, 2021 are as follows, including renewal options that are reasonably certain to be exercised: 2022 (remaining nine months) $ 281 2023 333 2024 254 2025 203 2026 203 Thereafter 5,202 Total lease payments 6,476 Less imputed interest (1,908) Total $ 4,568 |
Schedule of lease term and discount rate | The lease term and discount rate at December 31, 2021 and September 30, 2021 were as follows: December 31, September 30, 2021 2021 Weighted-average remaining lease term (years) 24.6 21.5 Weighted-average discount rate 2.85 % 2.53 % |
Schedule of supplemental cash flow information related to leases | Supplemental cash flow information for the three–month periods ended December 31, 2021 and 2020 related to leases was as follows: 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 107 $ 390 ROU assets obtained in exchange for lease obligations: Operating leases $ — $ 1,843 |
Mortgage Banking Income (Tables
Mortgage Banking Income (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Mortgage Banking Income | |
Summary of components of mortgage banking income | Three Months Ended December 31, 2021 2020 Origination and sale of mortgage loans (1) $ 4,655 $ 42,708 Mortgage brokerage income 331 15 Net change in fair value of loans held for sale and interest rate lock commitments (222) (2,417) Realized and unrealized hedging gains (losses) 695 (7,363) Capitalized residential mortgage loan servicing rights 4,504 12,872 Net change in fair value of residential mortgage loan servicing rights 675 (3,065) Provisions for loan repurchases and indemnifications (14) (463) Net loan servicing income 2,120 942 Total mortgage banking income $ 12,744 $ 43,229 (1) Includes origination fees and realized gains and losses on the sale of mortgage loans in the secondary market. |
Presentation of Interim Infor_2
Presentation of Interim Information (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | |||
Payments to Acquire Additional Interest in Subsidiaries | $ 1,745,000 | ||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 2,452,000 | ||
Subsidiary [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 51.00% | ||
Subsidiary [Member] | Business Capital LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to Acquire Additional Interest in Subsidiaries | $ 3,100,000 | ||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 695,000 | ||
Deferred Income Tax Assets, Net | 590,000 | 590,000 | |
Additional Paid in Capital | $ 1,900,000 | $ 1,900,000 |
Investment Securities - Fair Va
Investment Securities - Fair Value to Amortized Cost (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | |
Securities available for sale: | |||
Amortized Cost | $ 207,453 | $ 195,417 | |
Gross Unrealized Gain | 11,953 | 11,717 | |
Gross Unrealized Losses | 282 | 453 | |
Fair Value | 219,124 | 206,681 | |
Securities held to maturity: | |||
Amortized Cost | 1,802 | [1] | 1,837 |
Gross Unrealized Gain | 188 | 217 | |
Gross Unrealized Losses | 0 | ||
Fair Value | 1,990 | 2,054 | |
U.S. Treasury bills | |||
Securities available for sale: | |||
Amortized Cost | 250 | ||
Gross Unrealized Gain | 0 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 250 | ||
Agency Mortgage-Backed | |||
Securities available for sale: | |||
Amortized Cost | 8,991 | 8,143 | |
Gross Unrealized Gain | 238 | 293 | |
Gross Unrealized Losses | 100 | 52 | |
Fair Value | 9,129 | 8,384 | |
Securities held to maturity: | |||
Amortized Cost | 59 | 64 | |
Gross Unrealized Gain | 3 | 5 | |
Gross Unrealized Losses | 0 | ||
Fair Value | 62 | 69 | |
Agency CMO | |||
Securities available for sale: | |||
Amortized Cost | 13,255 | 13,315 | |
Gross Unrealized Gain | 161 | 235 | |
Gross Unrealized Losses | 44 | 20 | |
Fair Value | 13,372 | 13,530 | |
Privately-issued CMO | |||
Securities available for sale: | |||
Amortized Cost | 695 | 729 | |
Gross Unrealized Gain | 27 | 81 | |
Gross Unrealized Losses | 7 | 7 | |
Fair Value | 715 | 803 | |
Privately-issued ABS | |||
Securities available for sale: | |||
Amortized Cost | 681 | 721 | |
Gross Unrealized Gain | 43 | 51 | |
Gross Unrealized Losses | 1 | 0 | |
Fair Value | 723 | 772 | |
SBA certificates | |||
Securities available for sale: | |||
Amortized Cost | 2,033 | 2,157 | |
Gross Unrealized Gain | 5 | 2 | |
Gross Unrealized Losses | 20 | 21 | |
Fair Value | 2,018 | 2,138 | |
Municipal bonds | |||
Securities available for sale: | |||
Amortized Cost | 181,798 | 170,102 | |
Gross Unrealized Gain | 11,479 | 11,055 | |
Gross Unrealized Losses | 110 | 353 | |
Fair Value | 193,167 | 180,804 | |
Securities held to maturity: | |||
Amortized Cost | 1,743 | 1,773 | |
Gross Unrealized Gain | 185 | 212 | |
Gross Unrealized Losses | 0 | ||
Fair Value | $ 1,928 | $ 1,985 | |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value by Contractual Maturity - Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Available for Sale - Amortized Cost | ||
Amortized Cost | $ 207,453 | $ 195,417 |
Available for Sale - Fair Value | ||
Fair Value | 219,124 | 206,681 |
Municipal bonds | ||
Available for Sale - Amortized Cost | ||
Due within one year | 9,255 | |
Due after one year through five years | 25,384 | |
Due after five years through ten years | 35,348 | |
Due after ten years | 111,811 | |
Amortized Cost | 181,798 | 170,102 |
Available for Sale - Fair Value | ||
Due within one year | 9,330 | |
Due after one year through five years | 26,390 | |
Due after five years through ten years | 37,632 | |
Due after ten years | 119,815 | |
Fair Value | 193,167 | 180,804 |
CMO | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 13,950 | |
Available for Sale - Fair Value | ||
Without single maturity date | 14,087 | |
ABS | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 681 | |
Available for Sale - Fair Value | ||
Without single maturity date | 723 | |
SBA certificates | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 2,033 | |
Amortized Cost | 2,033 | 2,157 |
Available for Sale - Fair Value | ||
Without single maturity date | 2,018 | |
Fair Value | 2,018 | $ 2,138 |
Mortgage-backed securities | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 8,991 | |
Available for Sale - Fair Value | ||
Without single maturity date | $ 9,129 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value by Contractual Maturity - Held to Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Held to Maturity - Amortized Cost | ||
Amortized Cost | $ 1,802 | |
Held to Maturity - Fair Value | ||
Fair Value | 1,990 | $ 2,054 |
Municipal bonds | ||
Held to Maturity - Amortized Cost | ||
Due within one year | 265 | |
Due after one year through five years | 879 | |
Due after five years through ten years | 599 | |
Held to Maturity - Fair Value | ||
Due within one year | 286 | |
Due after one year through five years | 962 | |
Due after five years through ten years | 680 | |
Fair Value | 1,928 | $ 1,985 |
Mortgage-backed securities | ||
Held to Maturity - Amortized Cost | ||
Without single maturity date | 59 | |
Held to Maturity - Fair Value | ||
Without single maturity date | $ 62 |
Investment Securities - Investm
Investment Securities - Investment Securities With Gross Unrealized Losses (Details) $ in Thousands | Dec. 31, 2021USD ($)position | Sep. 30, 2021USD ($)position |
Fair Value | ||
Continuous loss position less than twelve months | $ 15,249 | $ 20,439 |
Continuous loss position more than twelve months | 2,396 | 2,013 |
Total securities available for sale | $ 17,645 | $ 22,452 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 14 | 22 |
Continuous loss position more than twelve months | position | 4 | 3 |
Total securities available for sale | position | 18 | 25 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 216 | $ 346 |
Continuous loss position more than twelve months | 66 | 107 |
Total securities available for sale | 282 | 453 |
Agency Mortgage-Backed | ||
Fair Value | ||
Continuous loss position less than twelve months | $ 4,235 | $ 3,056 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 2 | 1 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 100 | $ 52 |
Agency CMO | ||
Fair Value | ||
Continuous loss position less than twelve months | $ 2,683 | $ 1,466 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 4 | 2 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 44 | $ 20 |
Privately-issued CMO | ||
Fair Value | ||
Continuous loss position more than twelve months | $ 22 | $ 23 |
Number of Investment Positions | ||
Continuous loss position more than twelve months | position | 1 | 1 |
Gross Unrealized Losses | ||
Continuous loss position more than twelve months | $ 7 | $ 7 |
Privately-issued ABS | ||
Fair Value | ||
Continuous loss position more than twelve months | $ 350 | |
Number of Investment Positions | ||
Continuous loss position more than twelve months | position | 1 | |
Gross Unrealized Losses | ||
Continuous loss position more than twelve months | $ 1 | |
SBA certificates | ||
Fair Value | ||
Continuous loss position less than twelve months | 1,898 | 2,013 |
Continuous loss position more than twelve months | $ 81 | $ 88 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 1 | 1 |
Continuous loss position more than twelve months | position | 1 | 1 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 19 | $ 20 |
Continuous loss position more than twelve months | 1 | 1 |
Municipal bonds | ||
Fair Value | ||
Continuous loss position less than twelve months | 6,433 | 13,904 |
Continuous loss position more than twelve months | $ 1,943 | $ 1,902 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 7 | 18 |
Continuous loss position more than twelve months | position | 1 | 1 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 53 | $ 254 |
Continuous loss position more than twelve months | $ 57 | $ 99 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | |
Dec. 31, 2021USD ($)position | Sep. 30, 2021position | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Continuous loss position more than twelve months | position | 4 | 3 |
Debt Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Available for sale debt securities in loss position, depreciation percentage | 98.43% | |
Debt Securities | Downgraded Due To Potential Credit Losses | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Carrying value of downgraded due to potential credit losses | $ | $ 484,000 | |
Debt Securities | Downgraded Privately Issued Cmos | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair market value of downgraded privately issued collateralized mortgage obligations | $ | $ 493,000 | |
Two Privately Issued Collateralized Mortgage Obligations | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Available for sale debt securities in loss position, depreciation percentage | 2.09% | |
Privately-issued CMO | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Continuous loss position more than twelve months | position | 1 | 1 |
Investments, Fair value disclosure | $ | $ 372,000 | |
Total unrealized loss | $ | $ 8,000 | |
Privately-issued CMO | Two Privately Issued Collateralized Mortgage Obligations | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Continuous loss position more than twelve months | position | 1 | |
Privately-issued ABS | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Continuous loss position more than twelve months | position | 1 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Loans (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 | |
Loans and Allowance for Loan Losses | |||
Deferred loan origination fees and costs, net (2) | $ 779,000 | $ 281,000 | |
Allowance for loan losses | (14,780,000) | (14,301,000) | |
Loans, net | 1,142,655,000 | [1] | 1,075,936,000 |
Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Deferred loan origination fees and costs, net (2) | (210,000) | (208,000) | |
Single tenant net lease | |||
Loans and Allowance for Loan Losses | |||
Deferred loan origination fees and costs, net (2) | (84,000) | (123,000) | |
Multifamily | |||
Loans and Allowance for Loan Losses | |||
Deferred loan origination fees and costs, net (2) | (47,000) | (47,000) | |
Residential Construction | |||
Loans and Allowance for Loan Losses | |||
Deferred loan origination fees and costs, net (2) | (47,000) | (49,000) | |
Commercial Construction | |||
Loans and Allowance for Loan Losses | |||
Deferred loan origination fees and costs, net (2) | (31,000) | (28,000) | |
Land and Land Development | |||
Loans and Allowance for Loan Losses | |||
Deferred loan origination fees and costs, net (2) | (11,000) | (6,000) | |
SBA commercial business | |||
Loans and Allowance for Loan Losses | |||
Deferred loan origination fees and costs, net (2) | (420,000) | ||
Consumer | |||
Loans and Allowance for Loan Losses | |||
Deferred loan origination fees and costs, net (2) | (16,000) | (17,000) | |
Commercial Business | |||
Loans and Allowance for Loan Losses | |||
Deferred loan origination fees and costs, net (2) | 50,000 | 49,000 | |
Pay Check Protection Program | |||
Loans and Allowance for Loan Losses | |||
Total loans | 46,000,000 | 56,700,000 | |
Deferred loan origination fees and costs, net (2) | 332,000 | 757,000 | |
Real estate mortgage | |||
Loans and Allowance for Loan Losses | |||
Total loans | 1,156,656,000 | 1,089,956,000 | |
Real estate mortgage | One To Four Family | |||
Loans and Allowance for Loan Losses | |||
Total loans | 262,920,000 | 241,425,000 | |
Real estate mortgage | Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Total loans | 144,457,000 | 149,600,000 | |
Real estate mortgage | Single tenant net lease | |||
Loans and Allowance for Loan Losses | |||
Total loans | 461,123,000 | 403,692,000 | |
Real estate mortgage | SBA | |||
Loans and Allowance for Loan Losses | |||
Total loans | 62,729,000 | 62,805,000 | |
Real estate mortgage | Multifamily | |||
Loans and Allowance for Loan Losses | |||
Total loans | 38,738,000 | 40,324,000 | |
Real estate mortgage | Residential Construction | |||
Loans and Allowance for Loan Losses | |||
Total loans | 9,962,000 | 8,330,000 | |
Real estate mortgage | Commercial Construction | |||
Loans and Allowance for Loan Losses | |||
Total loans | 3,644,000 | 2,717,000 | |
Real estate mortgage | Land and Land Development | |||
Loans and Allowance for Loan Losses | |||
Total loans | 10,924,000 | 10,217,000 | |
Real estate mortgage | Commercial business | |||
Loans and Allowance for Loan Losses | |||
Total loans | 62,931,000 | 59,883,000 | |
Real estate mortgage | SBA commercial business | |||
Loans and Allowance for Loan Losses | |||
Total loans | 69,647,000 | 80,400,000 | |
Real estate mortgage | Consumer | |||
Loans and Allowance for Loan Losses | |||
Total loans | $ 30,211,000 | $ 30,563,000 | |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Components of Recorded Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Recorded Investment in Loans: | ||
Principal loan balance | $ 1,156,656 | $ 1,089,956 |
Accrued interest receivable | 4,507 | 4,398 |
Net deferred loan origination fees and costs | 779 | 281 |
Recorded investment in loans | 1,161,942 | 1,094,635 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 14,432 | 16,743 |
Collectively evaluated for impairment | 1,147,510 | 1,077,892 |
Recorded investment in loans | 1,161,942 | 1,094,635 |
Residential real estate | ||
Recorded Investment in Loans: | ||
Principal loan balance | 262,920 | 241,425 |
Accrued interest receivable | 872 | 821 |
Net deferred loan origination fees and costs | 56 | 24 |
Recorded investment in loans | 263,848 | 242,270 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 2,675 | 3,067 |
Collectively evaluated for impairment | 261,173 | 239,203 |
Recorded investment in loans | 263,848 | 242,270 |
Commercial real estate | ||
Recorded Investment in Loans: | ||
Principal loan balance | 144,457 | 149,600 |
Accrued interest receivable | 464 | 563 |
Net deferred loan origination fees and costs | (210) | (208) |
Recorded investment in loans | 144,711 | 149,955 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 994 | 1,021 |
Collectively evaluated for impairment | 143,717 | 148,934 |
Recorded investment in loans | 144,711 | 149,955 |
Single tenant net lease | ||
Recorded Investment in Loans: | ||
Principal loan balance | 461,123 | 403,692 |
Accrued interest receivable | 1,496 | 1,369 |
Net deferred loan origination fees and costs | (84) | (123) |
Recorded investment in loans | 462,535 | 404,938 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 462,535 | 404,938 |
Recorded investment in loans | 462,535 | 404,938 |
SBA commercial real estate | ||
Recorded Investment in Loans: | ||
Principal loan balance | 62,729 | 62,805 |
Accrued interest receivable | 456 | 475 |
Net deferred loan origination fees and costs | 1,119 | 1,106 |
Recorded investment in loans | 64,304 | 64,386 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 7,467 | 9,153 |
Collectively evaluated for impairment | 56,837 | 55,233 |
Recorded investment in loans | 64,304 | 64,386 |
Multifamily | ||
Recorded Investment in Loans: | ||
Principal loan balance | 38,738 | 40,324 |
Accrued interest receivable | 70 | 76 |
Net deferred loan origination fees and costs | (47) | (47) |
Recorded investment in loans | 38,761 | 40,353 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 384 | 482 |
Collectively evaluated for impairment | 38,377 | 39,871 |
Recorded investment in loans | 38,761 | 40,353 |
Residential Construction | ||
Recorded Investment in Loans: | ||
Principal loan balance | 9,962 | 8,330 |
Accrued interest receivable | 17 | 14 |
Net deferred loan origination fees and costs | (47) | (49) |
Recorded investment in loans | 9,932 | 8,295 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 9,932 | 8,295 |
Recorded investment in loans | 9,932 | 8,295 |
Commercial Construction | ||
Recorded Investment in Loans: | ||
Principal loan balance | 3,644 | 2,717 |
Accrued interest receivable | 9 | 6 |
Net deferred loan origination fees and costs | (31) | (28) |
Recorded investment in loans | 3,622 | 2,695 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 3,622 | 2,695 |
Recorded investment in loans | 3,622 | 2,695 |
Land and Land Development | ||
Recorded Investment in Loans: | ||
Principal loan balance | 10,294 | 10,217 |
Accrued interest receivable | 20 | 18 |
Net deferred loan origination fees and costs | (11) | (6) |
Recorded investment in loans | 10,303 | 10,229 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 10,303 | 10,229 |
Recorded investment in loans | 10,303 | 10,229 |
Commercial Business | ||
Recorded Investment in Loans: | ||
Principal loan balance | 62,931 | 59,883 |
Accrued interest receivable | 172 | 171 |
Net deferred loan origination fees and costs | 50 | 49 |
Recorded investment in loans | 63,153 | 60,103 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 1,362 | 1,476 |
Collectively evaluated for impairment | 61,791 | 58,627 |
Recorded investment in loans | 63,153 | 60,103 |
SBA commercial business | ||
Recorded Investment in Loans: | ||
Principal loan balance | 69,647 | 80,400 |
Accrued interest receivable | 817 | 791 |
Net deferred loan origination fees and costs | (420) | |
Recorded investment in loans | 70,464 | 80,771 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 1,320 | 1,296 |
Collectively evaluated for impairment | 69,144 | 79,475 |
Recorded investment in loans | 70,464 | 80,771 |
Consumer | ||
Recorded Investment in Loans: | ||
Principal loan balance | 30,211 | 30,563 |
Accrued interest receivable | 114 | 94 |
Net deferred loan origination fees and costs | (16) | (17) |
Recorded investment in loans | 30,309 | 30,640 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 230 | 248 |
Collectively evaluated for impairment | 30,079 | 30,392 |
Recorded investment in loans | $ 30,309 | $ 30,640 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Changes in Allowance for Loan Losses: | |||
Beginning balance | $ 14,301 | $ 17,026 | |
Provisions | 526 | 668 | |
Charge-offs | (81) | (602) | |
Recoveries | 34 | 32 | |
Ending balance | 14,780 | 17,124 | |
Ending Allowance Balance Attributable to Loans: | |||
Individually evaluated for impairment | 781 | $ 133 | |
Collectively evaluated for impairment | 13,999 | 14,168 | |
Ending balance | 14,780 | 17,124 | 14,301 |
Residential real estate | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 1,438 | 1,255 | |
Provisions | (82) | (79) | |
Charge-offs | (23) | (5) | |
Recoveries | 3 | 5 | |
Ending balance | 1,336 | 1,176 | |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 1,336 | 1,438 | |
Ending balance | 1,336 | 1,176 | 1,438 |
Commercial real estate | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 2,806 | 3,058 | |
Provisions | (295) | (51) | |
Ending balance | 2,511 | 3,007 | |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 2,511 | 2,806 | |
Ending balance | 2,511 | 3,007 | 2,806 |
Single tenant net lease | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 2,422 | 3,017 | |
Provisions | 345 | 216 | |
Ending balance | 2,767 | 3,233 | |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 2,767 | 2,422 | |
Ending balance | 2,767 | 3,233 | 2,422 |
SBA commercial real estate | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 3,475 | 4,154 | |
Provisions | 267 | (15) | |
Charge-offs | (20) | (522) | |
Recoveries | 7 | ||
Ending balance | 3,722 | 3,624 | |
Ending Allowance Balance Attributable to Loans: | |||
Individually evaluated for impairment | 333 | 144 | |
Collectively evaluated for impairment | 3,389 | 3,361 | |
Ending balance | 3,722 | 3,624 | 3,475 |
Multifamily | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 518 | 772 | |
Provisions | (77) | (59) | |
Ending balance | 441 | 713 | |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 441 | 518 | |
Ending balance | 441 | 713 | 518 |
Residential Construction | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 191 | 243 | |
Provisions | 18 | (94) | |
Ending balance | 209 | 149 | |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 209 | 191 | |
Ending balance | 209 | 149 | 191 |
Commercial Construction | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 63 | 181 | |
Provisions | 17 | 31 | |
Ending balance | 80 | 212 | |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 80 | 63 | |
Ending balance | 80 | 212 | 63 |
Land and Land Development | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 235 | 243 | |
Provisions | (14) | 56 | |
Recoveries | 1 | ||
Ending balance | 221 | 300 | |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 221 | 235 | |
Ending balance | 221 | 300 | 235 |
Commercial Business | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 1,284 | 1,449 | |
Provisions | (44) | 28 | |
Recoveries | 10 | ||
Ending balance | 1,240 | 1,487 | |
Ending Allowance Balance Attributable to Loans: | |||
Collectively evaluated for impairment | 1,240 | 1,284 | |
Ending balance | 1,240 | 1,487 | 1,284 |
SBA commercial business | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 1,346 | 1,539 | |
Provisions | 401 | (12) | |
Recoveries | 22 | 9 | |
Ending balance | 1,769 | 1,536 | |
Ending Allowance Balance Attributable to Loans: | |||
Individually evaluated for impairment | 448 | 18 | |
Collectively evaluated for impairment | 1,321 | 1,328 | |
Ending balance | 1,769 | 1,536 | 1,346 |
Consumer | |||
Changes in Allowance for Loan Losses: | |||
Beginning balance | 523 | 1,115 | |
Provisions | (10) | 647 | |
Charge-offs | (38) | (75) | |
Recoveries | 9 | ||
Ending balance | 484 | 1,687 | |
Ending Allowance Balance Attributable to Loans: | |||
Individually evaluated for impairment | 1 | ||
Collectively evaluated for impairment | 484 | 522 | |
Ending balance | $ 484 | $ 1,687 | $ 523 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | $ 12,641 | $ 15,546 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 14,419 | 17,245 | |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 15,153 | $ 12,315 | |
Loans with no related allowance recorded, Interest Income Recognized | 25 | 34 | |
Loans with an allowance recorded, Recorded Investment | 1,791 | 1,197 | |
Loans with an allowance recorded, Unpaid Principal Balance | 2,145 | 1,624 | |
Loans with an allowance recorded, Related Allowance | 781 | 133 | |
Loans with an allowance recorded, Average Recorded Investment | 1,635 | 4,521 | |
Total, Recorded Investment | 14,432 | 16,743 | |
Total, Unpaid Principal Balance | 16,564 | 18,869 | |
Total, Related Allowance | 781 | 133 | |
Total, Average Recorded Investment | 16,788 | 16,836 | |
Total, Interest Income Recognized | 25 | 34 | |
Residential real estate | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 2,674 | 3,002 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 3,190 | 3,551 | |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 3,444 | 5,294 | |
Loans with no related allowance recorded, Interest Income Recognized | 16 | 27 | |
Loans with an allowance recorded, Recorded Investment | 0 | 65 | |
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 65 | |
Loans with an allowance recorded, Related Allowance | 0 | 0 | |
Loans with an allowance recorded, Average Recorded Investment | 253 | 65 | |
Total, Recorded Investment | 2,674 | 3,067 | |
Total, Unpaid Principal Balance | 3,190 | 3,616 | |
Total, Related Allowance | 0 | 0 | |
Total, Average Recorded Investment | 3,697 | 5,359 | |
Total, Interest Income Recognized | 16 | 27 | |
Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 994 | 1,021 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 1,067 | 1,092 | |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 1,079 | 1,176 | |
Loans with no related allowance recorded, Interest Income Recognized | 7 | 6 | |
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 | |
Total, Recorded Investment | 994 | 1,021 | |
Total, Unpaid Principal Balance | 1,067 | 1,092 | |
Total, Related Allowance | 0 | 0 | |
Total, Average Recorded Investment | 1,079 | 1,176 | |
Total, Interest Income Recognized | 7 | 6 | |
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, Related Allowance | 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 | |
Total, Recorded Investment | 0 | 0 | |
Total, Unpaid Principal Balance | 0 | 0 | |
Total, Related Allowance | 0 | 0 | |
SBA commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 6,665 | 8,184 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 7,561 | 8,873 | |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 8,102 | 2,960 | |
Loans with an allowance recorded, Recorded Investment | 801 | 969 | |
Loans with an allowance recorded, Unpaid Principal Balance | 1,062 | 1,394 | |
Loans with an allowance recorded, Related Allowance | 333 | 114 | |
Loans with an allowance recorded, Average Recorded Investment | 1,025 | 3,788 | |
Total, Recorded Investment | 7,466 | 9,153 | |
Total, Unpaid Principal Balance | 8,623 | 10,267 | |
Total, Related Allowance | 333 | 114 | |
Total, Average Recorded Investment | 9,127 | 6,748 | |
Multifamily | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 384 | 482 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 423 | 539 | |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 428 | 697 | |
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 | |
Total, Recorded Investment | 384 | 482 | |
Total, Unpaid Principal Balance | 423 | 539 | |
Total, Related Allowance | 0 | 0 | |
Total, Average Recorded Investment | 428 | 697 | |
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, Related Allowance | 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 | |
Total, Recorded Investment | 0 | 0 | |
Total, Unpaid Principal Balance | 0 | 0 | |
Total, Related Allowance | 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, Related Allowance | 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 | |
Total, Recorded Investment | 0 | 0 | |
Total, Unpaid Principal Balance | 0 | ||
Total, Related Allowance | 0 | 0 | |
Land and Land Development | |||
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, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 1 | ||
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 | |
Total, Recorded Investment | 0 | 0 | |
Total, Unpaid Principal Balance | 0 | 0 | |
Total, Related Allowance | 0 | 0 | |
Total, Average Recorded Investment | 1 | ||
Commercial Business | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 1,362 | 1,476 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 1,463 | 1,559 | |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 1,511 | 1,670 | |
Loans with no related allowance recorded, Interest Income Recognized | 2 | ||
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 | |
Total, Recorded Investment | 1,362 | 1,476 | |
Total, Unpaid Principal Balance | 1,463 | 1,559 | |
Total, Related Allowance | 0 | 0 | |
Total, Average Recorded Investment | 1,511 | 1,670 | |
Total, Interest Income Recognized | 2 | ||
SBA commercial business | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 470 | 1,278 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 630 | 1,534 | |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 502 | 416 | |
Loans with an allowance recorded, Recorded Investment | 850 | 18 | |
Loans with an allowance recorded, Unpaid Principal Balance | 943 | 21 | |
Loans with an allowance recorded, Related Allowance | 448 | 18 | |
Loans with an allowance recorded, Average Recorded Investment | 219 | 433 | |
Total, Recorded Investment | 1,320 | 1,296 | |
Total, Unpaid Principal Balance | 1,573 | 1,555 | |
Total, Related Allowance | 448 | 18 | |
Total, Average Recorded Investment | 721 | 849 | |
Consumer | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 92 | 103 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 85 | 97 | |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 87 | 101 | |
Loans with no related allowance recorded, Interest Income Recognized | 1 | ||
Loans with an allowance recorded, Recorded Investment | 140 | 145 | |
Loans with an allowance recorded, Unpaid Principal Balance | 140 | 144 | |
Loans with an allowance recorded, Related Allowance | 0 | 1 | |
Loans with an allowance recorded, Average Recorded Investment | 138 | 235 | |
Total, Recorded Investment | 232 | 248 | |
Total, Unpaid Principal Balance | 225 | 241 | |
Total, Related Allowance | 0 | $ 1 | |
Total, Average Recorded Investment | $ 225 | 336 | |
Total, Interest Income Recognized | $ 1 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Nonperforming Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | $ 12,728 | $ 15,000 |
Loans 90+ Days Past Due Still Accruing | 0 | 472 |
Total Nonperforming Loans | 12,728 | 15,472 |
Residential real estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 1,520 | 1,894 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 1,520 | 1,894 |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 579 | 599 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 579 | 599 |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 0 | |
SBA commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 7,466 | 9,153 |
Loans 90+ Days Past Due Still Accruing | 0 | 472 |
Total Nonperforming Loans | 7,466 | 9,625 |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 384 | 482 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 384 | 482 |
Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 0 | |
Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 0 | |
Land and Land Development | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 0 | |
Commercial Business | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 1,265 | 1,370 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 1,265 | 1,370 |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 1,320 | 1,296 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 1,320 | 1,296 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 194 | 206 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | $ 194 | $ 206 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Aging of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Loans and Allowance for Loan Losses | ||
Total Loans | $ 1,161,942 | $ 1,094,635 |
Financing receivable recorded investment | 1,155,409 | 8,410 |
Recorded investment in loans | 1,161,942 | 1,094,635 |
Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 1,179 | 869 |
Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 353 | 684 |
Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 6,533 | 1,086,225 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 5,001 | 6,857 |
Residential real estate | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 263,848 | 242,270 |
Financing receivable recorded investment | 262,429 | 1,517 |
Recorded investment in loans | 263,848 | 242,270 |
Residential real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 858 | 818 |
Residential real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 308 | 352 |
Residential real estate | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 1,419 | 240,753 |
Residential real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 253 | 347 |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 144,711 | 149,955 |
Financing receivable recorded investment | 144,128 | 599 |
Recorded investment in loans | 144,711 | 149,955 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 4 | |
Commercial real estate | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 583 | 149,356 |
Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 579 | 599 |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 462,535 | 404,938 |
Financing receivable recorded investment | 462,535 | |
Recorded investment in loans | 462,535 | 404,938 |
Single tenant net lease | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 404,938 | |
SBA commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 64,304 | 64,386 |
Financing receivable recorded investment | 61,185 | 5,198 |
Recorded investment in loans | 64,304 | 64,386 |
SBA commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 208 | |
SBA commercial real estate | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 3,119 | 59,188 |
SBA commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 3,119 | 4,990 |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 38,761 | 40,353 |
Financing receivable recorded investment | 38,761 | |
Recorded investment in loans | 38,761 | 40,353 |
Multifamily | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 40,353 | |
Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 9,932 | 8,295 |
Financing receivable recorded investment | 9,932 | |
Recorded investment in loans | 9,932 | 8,295 |
Residential Construction | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 8,295 | |
Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 3,622 | 2,695 |
Financing receivable recorded investment | 3,622 | |
Recorded investment in loans | 3,622 | 2,695 |
Commercial Construction | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 2,695 | |
Land and Land Development | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 10,303 | 10,229 |
Financing receivable recorded investment | 10,303 | |
Recorded investment in loans | 10,303 | 10,229 |
Land and Land Development | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 10,229 | |
Commercial Business | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 63,153 | 60,103 |
Financing receivable recorded investment | 63,150 | 3 |
Recorded investment in loans | 63,153 | 60,103 |
Commercial Business | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 3 | 60,100 |
Commercial Business | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 3 | 3 |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 70,464 | 80,771 |
Financing receivable recorded investment | 69,198 | 970 |
Recorded investment in loans | 70,464 | 80,771 |
SBA commercial business | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 273 | 18 |
SBA commercial business | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 104 | |
SBA commercial business | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 1,266 | 79,801 |
SBA commercial business | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 993 | 848 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Total Loans | 30,309 | 30,640 |
Financing receivable recorded investment | 30,166 | 123 |
Recorded investment in loans | 30,309 | 30,640 |
Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 44 | 33 |
Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 45 | 20 |
Consumer | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 143 | 30,517 |
Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | $ 54 | $ 70 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Recorded Investment in Loans by Risk Category (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | $ 1,161,942 | $ 1,094,635 |
Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,131,079 | 1,053,774 |
Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 8,254 | 16,316 |
Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 20,794 | 21,102 |
Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,815 | 3,443 |
Residential real estate | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 263,848 | 242,270 |
Residential real estate | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 262,076 | 240,078 |
Residential real estate | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,604 | 2,018 |
Residential real estate | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 168 | 174 |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 144,711 | 149,955 |
Commercial real estate | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 142,270 | 143,031 |
Commercial real estate | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 4,059 | |
Commercial real estate | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 2,441 | 2,865 |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 462,535 | 404,938 |
Single tenant net lease | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 462,535 | 404,938 |
SBA commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 64,304 | 64,386 |
SBA commercial real estate | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 50,931 | 45,465 |
SBA commercial real estate | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,154 | 5,343 |
SBA commercial real estate | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 10,592 | 10,339 |
SBA commercial real estate | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,627 | 3,239 |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 38,761 | 40,353 |
Multifamily | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 38,377 | 39,871 |
Multifamily | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 384 | 482 |
Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 9,932 | 8,295 |
Residential Construction | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 9,932 | 8,295 |
Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 3,622 | 2,695 |
Commercial Construction | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 3,622 | 2,695 |
Land and Land Development | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 10,303 | 10,229 |
Land and Land Development | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 10,303 | 10,229 |
Commercial Business | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 63,153 | 60,103 |
Commercial Business | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 61,757 | 58,583 |
Commercial Business | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,396 | 1,520 |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 70,464 | 80,771 |
SBA commercial business | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 59,021 | 70,019 |
SBA commercial business | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 7,100 | 6,914 |
SBA commercial business | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 4,323 | 3,808 |
SBA commercial business | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 20 | 30 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 30,309 | 30,640 |
Consumer | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 30,255 | 30,570 |
Consumer | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | $ 54 | $ 70 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Recorded Investment in Troubled Debt Restructurings by Class of Loan and Accrual Status (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Financing Receivable, Modifications [Line Items] | ||
Accruing | $ 1,704 | $ 1,743 |
Nonaccrual | 3,728 | 5,554 |
Total | 5,432 | 7,297 |
Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 1,154 | 1,173 |
Total | 1,154 | 1,173 |
Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 415 | 422 |
Nonaccrual | 456 | 465 |
Total | 871 | 887 |
SBA commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccrual | 1,626 | 3,240 |
Total | 1,626 | 3,240 |
Multifamily | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccrual | 384 | 482 |
Total | 384 | 482 |
Commercial Business | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 97 | 106 |
Nonaccrual | 1,262 | 1,367 |
Total | 1,359 | 1,473 |
Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 38 | 42 |
Total | $ 38 | $ 42 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Loan Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Balance, beginning of period | $ 4,447 | ||
Balance, end of period | [1] | 4,429 | |
Small Business Administration Loans | |||
Balance, beginning of period | 4,447 | $ 3,748 | |
Servicing rights capitalized | 346 | 327 | |
Amortization | (288) | (202) | |
Direct write-offs | (35) | (183) | |
Change in valuation allowance | (41) | 32 | |
Balance, end of period | $ 4,429 | $ 3,722 | |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Mortgage Servicing Rights (Details) - Mortgage Servicing Rights. | 3 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Sep. 30, 2021 | |
Maximum | ||
Discount rate | 10.00% | 10.00% |
Prepayment rate | 44.91% | 43.27% |
Minimum | ||
Discount rate | 8.50% | 8.50% |
Prepayment rate | 6.02% | 6.04% |
Weighted Average | ||
Discount rate | 8.51% | 8.51% |
Prepayment rate | 8.72% | 10.00% |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Mortgage Servicing Rights at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Balance, beginning of period | $ 4,447 | ||
Changes in fair value related to: | |||
Balance, end of period | [1] | 4,429 | |
Mortgage Servicing Rights. | |||
Balance, beginning of period | 49,579 | $ 21,703 | |
Servicing rights capitalized | 4,504 | 12,872 | |
Changes in fair value related to: | |||
Loan repayments | (2,492) | (1,816) | |
Changes in valuation model inputs or assumptions | 3,167 | (1,249) | |
Balance, end of period | $ 54,758 | $ 31,510 | |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | ||
Loans and Allowance for Loan Losses | ||||
Mortgage loans in process of foreclosure amount | $ 65,000 | $ 124,000 | ||
Loans and leases receivable impaired commitment to lend | 1,000 | 1,000 | ||
Financing receivable allowance for credit losses, Write-downs | 81,000 | $ 602,000 | ||
Provision for loan losses | 526,000 | [1] | 668,000 | |
Impaired financing receivable, Unpaid principal balance | 16,564,000 | 18,869,000 | ||
Revenue from Contract with Customer | 2,100,000 | 929,000 | ||
Commercial real estate | ||||
Loans and Allowance for Loan Losses | ||||
Impaired financing receivable, Unpaid principal balance | 1,067,000 | 1,092,000 | ||
Residential real estate | ||||
Loans and Allowance for Loan Losses | ||||
Financing receivable allowance for credit losses, Write-downs | 23,000 | 5,000 | ||
Impaired financing receivable, Unpaid principal balance | 3,190,000 | 3,616,000 | ||
Commercial Business | ||||
Loans and Allowance for Loan Losses | ||||
Impaired financing receivable, Unpaid principal balance | 1,463,000 | 1,559,000 | ||
SBA Lending | ||||
Loans and Allowance for Loan Losses | ||||
Servicing assets valuation allowance | 47,000 | 6,000 | ||
SBA | ||||
Loans and Allowance for Loan Losses | ||||
Impaired financing receivable, Unpaid principal balance | 250,500,000 | 208,900,000 | 244,800,000 | |
SBA | Bank Servicing | ||||
Loans and Allowance for Loan Losses | ||||
Revenue from Contract with Customer | 20,000 | 25,000 | ||
SBA | SBA Lending | ||||
Loans and Allowance for Loan Losses | ||||
Revenue from Contract with Customer | 627,000 | 468,000 | ||
Troubled Debt Restructuring | ||||
Loans and Allowance for Loan Losses | ||||
Loans and leases receivable allowance covered | 0 | 0 | ||
Financing receivable allowance for credit losses, Write-downs | $ 398,000 | |||
Mortgage Servicing Rights. | ||||
Loans and Allowance for Loan Losses | ||||
Impaired financing receivable, Unpaid principal balance | 4,750,000,000 | 4,640,000,000 | ||
Escrow balances maintained with foregoing loan servicing and other liabilities | $ 19,200,000 | $ 30,600,000 | ||
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | |
Deposits | |||
Noninterest-bearing demand deposits | $ 287,449 | [1] | $ 291,039 |
NOW accounts | 325,676 | 315,169 | |
Money market accounts | 236,999 | 222,972 | |
Savings accounts | 166,102 | 162,033 | |
Retail time deposits | 130,228 | 136,309 | |
Brokered time deposits | 70,058 | ||
Reciprocal time deposits | 120,581 | 30,000 | |
Total deposits | $ 1,267,035 | $ 1,227,580 | |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Supplemental Disclosure for N_3
Supplemental Disclosure for Net Income Per Share - (Net income Per Share Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Basic: | |||
Net income attributable to First Savings Financial Group, Inc. available to common shareholders | $ 4,305 | $ 9,923 | |
Shares: | |||
Weighted average common shares outstanding, basic | 7,116,790 | [1] | 7,101,183 |
Net income per common share, basic | $ 0.60 | [1] | $ 1.40 |
Diluted: | |||
Net income attributable to First Savings Financial Group, Inc. available to common shareholders | $ 4,305 | $ 9,923 | |
Shares: | |||
Weighted average common shares outstanding, basic | 7,116,790 | [1] | 7,101,183 |
Add: Dilutive effect of outstanding options | 81,177 | 42,441 | |
Add: Dilutive effect of restricted stock | 9,243 | 10,482 | |
Weighted average common shares outstanding, as adjusted | 7,207,210 | 7,154,106 | |
Net income per common share, diluted | $ 0.60 | [1] | $ 1.39 |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Supplemental Disclosure for N_4
Supplemental Disclosure for Net Income Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 137,250 | 80,139 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information - (Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash payments for: | ||
Interest | $ 1,866 | $ 2,180 |
Income taxes (net of refunds received) | $ (5) | |
Noncash investing and financing activities: | ||
Transfers from loans to other real estate owned | 370 | |
Noncash exercise of stock options | 48 | |
Promissory note issued in acquisition of minority interests in Q2 | $ 1,296 |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Balances Of Financial Assets Measured At Fair Value On Recurring And Nonrecurring (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sale | $ 219,124 | [1] | $ 206,681 |
Total securities available for sales old | 219,124 | 206,681 | |
SBA loan servicing rights | 4,429 | [1] | 4,447 |
Residential mortgage loans held for sale | 1,142,655 | [1] | 1,075,936 |
Derivative assets (included in other assets) | 2,255 | 3,632 | |
Residential mortgage loan servicing rights, at fair value | 54,758 | [1] | 49,579 |
Derivative liabilities (included in other liabilities) | 294 | 635 | |
Agency Mortgage-Backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 9,129 | 8,384 | |
Agency CMO | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 13,372 | 13,530 | |
Privately-issued CMO | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 715 | 803 | |
Privately-issued ABS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 723 | 772 | |
SBA certificates | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 2,018 | 2,138 | |
Municipal bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 193,167 | 180,804 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 219,124 | 206,681 | |
Derivative assets (included in other assets) | 2,555 | 3,632 | |
Equity securities (included in other assets) | 368 | 112 | |
Residential mortgage loan servicing rights, at fair value | 54,758 | 49,579 | |
Derivative liabilities (included in other liabilities) | 294 | 635 | |
Fair Value, Measurements, Recurring | Agency Mortgage-Backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 9,129 | 8,384 | |
Fair Value, Measurements, Recurring | Agency CMO | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 13,372 | 13,530 | |
Fair Value, Measurements, Recurring | Privately-issued CMO | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 715 | 803 | |
Fair Value, Measurements, Recurring | Privately-issued ABS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 723 | 772 | |
Fair Value, Measurements, Recurring | SBA certificates | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 2,018 | 2,138 | |
Fair Value, Measurements, Recurring | Municipal bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 193,167 | 180,804 | |
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 sales old | 250 | ||
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 | 120,564 | 167,813 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 13,651 | 16,610 | |
Total other real estate owned | 1,728 | 1,728 | |
Fair Value, Measurements, Nonrecurring | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 2,674 | 3,067 | |
Fair Value, Measurements, Nonrecurring | Commercial real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 994 | 1,021 | |
Fair Value, Measurements, Nonrecurring | SBA commercial real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 7,133 | 9,039 | |
Fair Value, Measurements, Nonrecurring | Multifamily | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 384 | 482 | |
Fair Value, Measurements, Nonrecurring | Commercial Business | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 1,362 | 1,476 | |
Fair Value, Measurements, Nonrecurring | SBA commercial business | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 872 | 1,278 | |
Fair Value, Measurements, Nonrecurring | Consumer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 232 | 247 | |
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 | 24,998 | 24,107 | |
SBA loan servicing rights | 4,429 | 4,447 | |
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] | |||
Residential mortgage loans held for sale | 15,656 | ||
Fair Value, Measurements, Nonrecurring | Former bank premises | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other real estate owned | 1,728 | 1,728 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 0 | ||
SBA loan servicing rights | 0 | ||
Residential mortgage loans held for sale | 0 | ||
Derivative assets (included in other assets) | 0 | ||
Equity securities (included in other assets) | 368 | 112 | |
Derivative liabilities (included in other liabilities) | 0 | ||
Level 1 | Residential mortgage loans held for sale [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Residential mortgage loans held for sale | 0 | ||
Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 0 | ||
Derivative assets (included in other assets) | 0 | ||
Equity securities (included in other assets) | 368 | 112 | |
Residential mortgage loan servicing rights, at fair value | 0 | ||
Derivative liabilities (included in other liabilities) | 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 sales old | 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 sales old | 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 sales old | 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 sales old | 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 sales old | 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 sales old | 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 sales old | 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 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 0 | ||
Total other real estate owned | 0 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 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 | ||
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 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | Multifamily | |||
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 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 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 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | Consumer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 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 | ||
SBA loan servicing rights | 0 | ||
Level 1 | Fair Value, Measurements, Nonrecurring | Former bank premises | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other real estate owned | 0 | ||
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 219,124 | 206,681 | |
SBA loan servicing rights | 0 | ||
Residential mortgage loans held for sale | 0 | ||
Derivative assets (included in other assets) | 421 | 1,465 | |
Equity securities (included in other assets) | 0 | ||
Derivative liabilities (included in other liabilities) | 200 | 35 | |
Level 2 | Residential mortgage loans held for sale [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Residential mortgage loans held for sale | 167,813 | ||
Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 219,124 | 206,681 | |
Derivative assets (included in other assets) | 421 | 1,465 | |
Equity securities (included in other assets) | 0 | ||
Residential mortgage loan servicing rights, at fair value | 0 | ||
Derivative liabilities (included in other liabilities) | 200 | 35 | |
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 sales old | 9,129 | 8,384 | |
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 sales old | 13,372 | 13,530 | |
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 sales old | 715 | 803 | |
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 sales old | 723 | 772 | |
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 sales old | 2,018 | 2,138 | |
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 sales old | 193,167 | 180,804 | |
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 sales old | 250 | ||
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 | 120,564 | 167,813 | |
Level 2 | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 0 | ||
Total other real estate owned | 0 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 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 | ||
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 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | Multifamily | |||
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 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 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 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | Consumer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 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 | ||
SBA loan servicing rights | 0 | ||
Level 2 | Fair Value, Measurements, Nonrecurring | Former bank premises | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other real estate owned | 0 | ||
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 0 | ||
SBA loan servicing rights | 4,436 | 4,646 | |
Residential mortgage loans held for sale | 1,196,330 | 1,124,226 | |
Derivative assets (included in other assets) | 1,834 | 2,167 | |
Equity securities (included in other assets) | 0 | ||
Derivative liabilities (included in other liabilities) | 94 | 600 | |
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 | 54,758 | ||
Residential mortgage loans held for sale | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total securities available for sales old | 0 | ||
Derivative assets (included in other assets) | 1,834 | 2,167 | |
Equity securities (included in other assets) | 0 | ||
Residential mortgage loan servicing rights, at fair value | 54,758 | 49,579 | |
Derivative liabilities (included in other liabilities) | 94 | 600 | |
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 sales old | 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 sales old | 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 sales old | 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 sales old | 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 sales old | 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 sales old | 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 sales old | 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 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 13,651 | 16,610 | |
Total other real estate owned | 1,728 | 1,728 | |
Level 3 | Fair Value, Measurements, Nonrecurring | Residential real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 2,674 | 3,067 | |
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 | 994 | 1,021 | |
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 | 7,133 | 9,039 | |
Level 3 | Fair Value, Measurements, Nonrecurring | Multifamily | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 384 | 482 | |
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial Business | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 1,362 | 1,476 | |
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 | 872 | 1,278 | |
Level 3 | Fair Value, Measurements, Nonrecurring | Consumer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 232 | 247 | |
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 | 24,998 | 0 | |
SBA loan servicing rights | 4,429 | 4,447 | |
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] | |||
Residential mortgage loans held for sale | 15,656 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | Former bank premises | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other real estate owned | $ 1,728 | $ 1,728 | |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Reconciliation of derivative assets and liabilities measured at fair value on a recurring basis, Unobservable Input (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Beginning balance | $ 1,567 | $ 14,937 |
Unrealized gains/(losses) recognized in earnings, net of settlements | 173 | (3,522) |
Ending balance | $ 1,740 | $ 11,415 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a recurring basis (Details) - Interest rate lock commitments | Dec. 31, 2021 | Sep. 30, 2021 |
Pull-through rate [Member] | Minimum | ||
Fixed interest rate | 53.00% | 58.00% |
Pull-through rate [Member] | Maximum | ||
Fixed interest rate | 100.00% | 100.00% |
Pull-through rate [Member] | Weighted Average | ||
Fixed interest rate | 81.00% | 83.00% |
Direct costs to close [Member] | Minimum | ||
Fixed interest rate | 0.27% | 0.37% |
Direct costs to close [Member] | Maximum | ||
Fixed interest rate | 1.80% | 1.74% |
Direct costs to close [Member] | Weighted Average | ||
Fixed interest rate | 0.98% | 0.86% |
Fair Value Measurements and D_6
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Summary of fair value of loans measured using an entry price notion (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | |
Financial assets: | |||
Cash and due from banks | $ 16,543 | [1] | $ 14,191 |
Interest-bearing deposits with banks | 24,049 | [1] | 19,237 |
Securities available for sale, at fair values | 219,124 | 206,681 | |
Securities held to maturity | 1,802 | [1] | 1,837 |
Loans, net | 1,142,655 | [1] | 1,075,936 |
SBA loan servicing rights | 4,429 | [1] | 4,447 |
Derivative assets (included in other assets) | 2,255 | 3,632 | |
Financial liabilities: | |||
Deposits | 1,267,035 | 1,227,580 | |
Federal Home Loan Bank borrowings | 258,377 | [1] | 250,000 |
Accrued interest payable | 251 | [1] | 258 |
Advance payments by borrowers for taxes and insurance | 1,205 | [1] | 2,076 |
Derivative liabilities (included in other liabilities) | 294 | 635 | |
Level 1 | |||
Financial assets: | |||
Cash and due from banks | 16,543 | 14,191 | |
Interest-bearing deposits with banks | 24,049 | 19,237 | |
Interest-bearing time deposits | 0 | ||
Securities available for sale, at fair values | 0 | ||
Loans, net | 0 | ||
FRB and FHLB stock | 0 | ||
Accrued interest receivable | 0 | ||
SBA loan servicing rights | 0 | ||
Derivative assets (included in other assets) | 0 | ||
Equity securities (included in other assets) | 368 | 112 | |
Financial liabilities: | |||
Deposits | 0 | ||
Federal Home Loan Bank borrowings | 0 | ||
Subordinated note | 0 | ||
Accrued interest payable | 0 | ||
Advance payments by borrowers for taxes and insurance | 0 | ||
Derivative liabilities (included in other liabilities) | 0 | ||
Level 1 | Residential mortgage loans held for sale [Member] | |||
Financial assets: | |||
Loans, net | 0 | ||
Residential mortgage loan servicing rights | 0 | ||
Level 1 | Small Business Administration Loans | |||
Financial assets: | |||
Loans, net | 0 | ||
Level 2 | |||
Financial assets: | |||
Cash and due from banks | 0 | ||
Interest-bearing deposits with banks | 0 | ||
Interest-bearing time deposits | 1,973 | 2,222 | |
Securities available for sale, at fair values | 219,124 | 206,681 | |
Securities held to maturity | 1,990 | ||
Residential mortgage loans held for sale | 120,564 | ||
Loans, net | 0 | ||
FRB and FHLB stock | 0 | ||
Accrued interest receivable | 6,837 | 6,243 | |
SBA loan servicing rights | 0 | ||
Derivative assets (included in other assets) | 421 | 1,465 | |
Equity securities (included in other assets) | 0 | ||
Financial liabilities: | |||
Deposits | 0 | ||
Federal Home Loan Bank borrowings | 252,354 | 251,877 | |
Federal Reserve PPPLF Borrowings | 20,924 | ||
Subordinated note | 21,083 | ||
Accrued interest payable | 251 | 258 | |
Advance payments by borrowers for taxes and insurance | 1,205 | 1,188 | |
Derivative liabilities (included in other liabilities) | 200 | 35 | |
Level 2 | Residential mortgage loans held for sale [Member] | |||
Financial assets: | |||
Loans, net | 167,813 | ||
Residential mortgage loan servicing rights | 0 | ||
Level 2 | Small Business Administration Loans | |||
Financial assets: | |||
Loans, net | 27,312 | ||
Level 3 | |||
Financial assets: | |||
Cash and due from banks | 0 | ||
Interest-bearing deposits with banks | 0 | ||
Interest-bearing time deposits | 0 | ||
Securities available for sale, at fair values | 0 | ||
Single tenant net lease loans held for sale | 15,656 | ||
SBA loans held for sale | 28,223 | ||
Loans, net | 1,196,330 | 1,124,226 | |
FRB and FHLB stock | 0 | ||
Accrued interest receivable | 0 | ||
SBA loan servicing rights | 4,436 | 4,646 | |
Derivative assets (included in other assets) | 1,834 | 2,167 | |
Equity securities (included in other assets) | 0 | ||
Financial liabilities: | |||
Deposits | 1,266,985 | 1,228,147 | |
Federal Home Loan Bank borrowings | 0 | ||
Subordinated note | 0 | ||
Accrued interest payable | 0 | ||
Advance payments by borrowers for taxes and insurance | 0 | ||
Derivative liabilities (included in other liabilities) | 94 | 600 | |
Level 3 | Residential mortgage loans held for sale [Member] | |||
Financial assets: | |||
Loans, net | 0 | ||
Residential mortgage loan servicing rights | 49,579 | ||
SBA loan servicing rights | 54,758 | ||
Level 3 | Small Business Administration Loans | |||
Financial assets: | |||
Loans, net | 0 | ||
Estimate of Fair Value Measurement [Member] | |||
Financial assets: | |||
Cash and due from banks | 16,543 | 14,191 | |
Interest-bearing deposits with banks | 24,049 | 19,237 | |
Interest-bearing time deposits | 1,973 | 2,222 | |
Securities available for sale, at fair values | 219,124 | 206,681 | |
Securities held to maturity | 1,802 | 1,837 | |
Residential mortgage loans held for sale | 120,564 | ||
Single tenant net lease loans held for sale | 15,656 | ||
SBA loans held for sale | 24,998 | ||
Loans, net | 1,142,655 | 1,075,936 | |
FRB and FHLB stock | 19,258 | 19,258 | |
Accrued interest receivable | 6,837 | 6,243 | |
SBA loan servicing rights | 4,429 | 4,447 | |
Derivative assets (included in other assets) | 2,255 | 3,632 | |
Equity securities (included in other assets) | 368 | 112 | |
Financial liabilities: | |||
Deposits | 1,267,035 | 1,227,580 | |
Federal Home Loan Bank borrowings | 258,377 | 250,000 | |
Federal Reserve PPPLF Borrowings | 19,881 | ||
Subordinated note | 19,865 | ||
Accrued interest payable | 251 | 258 | |
Advance payments by borrowers for taxes and insurance | 1,205 | 1,188 | |
Derivative liabilities (included in other liabilities) | 294 | 635 | |
Estimate of Fair Value Measurement [Member] | Residential mortgage loans held for sale [Member] | |||
Financial assets: | |||
Loans, net | 167,813 | ||
Residential mortgage loan servicing rights | 49,579 | ||
SBA loan servicing rights | $ 54,758 | ||
Estimate of Fair Value Measurement [Member] | Small Business Administration Loans | |||
Financial assets: | |||
Loans, net | 24,107 | ||
Estimate of Fair Value Measurement [Member] | Level 1 | |||
Financial assets: | |||
Securities held to maturity | 0 | ||
Estimate of Fair Value Measurement [Member] | Level 2 | |||
Financial assets: | |||
Securities held to maturity | 2,054 | ||
Estimate of Fair Value Measurement [Member] | Level 3 | |||
Financial assets: | |||
Securities held to maturity | $ 0 | ||
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Fair Value Measurements and D_7
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Additional information (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | Sep. 30, 2021item | |
Derivative assets and liabilities held | $ 1,700,000 | $ 11,400,000 | |
Financing Receivable Recorded Investment 90 Days Past Due And Still Accruing Number Of Loans Less than Thousand | item | 0 | 0 | |
Impairment charges on loan | $ 41,000 | $ 32,000 | |
Impaired Loans [Member] | |||
Foreclosed Real Estate Expense | $ 691,000 | ||
Maximum | Collateral [Member] | Discount rate | |||
Fair value inputs discount rate | 6.00% | 26.00% | |
Maximum | Impaired Loans [Member] | Discount rate | |||
Fair value inputs discount rate | 100.00% | ||
Maximum | SBA | Discount rate | |||
Discount rate | 21.97% | 22.34% | |
Maximum | SBA | Prepayment rate | |||
Prepayment rate | 26.69% | 24.51% | |
Minimum | Collateral [Member] | Discount rate | |||
Fair value inputs discount rate | 0.00% | 0.00% | |
Minimum | Impaired Loans [Member] | Discount rate | |||
Fair value inputs discount rate | 0.00% | ||
Minimum | SBA | Discount rate | |||
Discount rate | 6.47% | 4.57% | |
Minimum | SBA | Prepayment rate | |||
Prepayment rate | 6.38% | 8.30% | |
Weighted Average | |||
Other real estate owned discount (in percent) | 30.9 | ||
Weighted Average | SBA | Discount rate | |||
Discount rate | 11.41% | 9.97% | |
Weighted Average | SBA | Prepayment rate | |||
Prepayment rate | 15.82% | 15.98% |
Fair Value Measurements and D_8
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Summary of Aggregate Fair Value and the Aggregate Remaining Principal Balance for Residential Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Residential mortgage loans held for sale Aggregate Fair Value | $ 120,564 | $ 167,813 |
Residential mortgage loans held for sale Aggregate Principal Balance | 117,096 | 163,158 |
Residential mortgage loans held for sale Difference | $ 3,468 | $ 4,655 |
Fair Value Measurements and D_9
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - 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 | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Total gains and interest included in earnings | $ 2,617 | $ 10,441 |
Interest income [Member] | ||
Interest income | 994 | 1,833 |
Mortgage Banking [Member] | ||
Gains (losses) - included in mortgage banking income | $ 1,623 | $ 8,608 |
Fair Value Measurements and _10
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments (Carrying Value And Estimated Fair Value Of Financial Instruments) (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | |
Financial assets: | |||
Cash and due from banks | $ 16,543 | [1] | $ 14,191 |
Interest-bearing deposits with banks | 24,049 | [1] | 19,237 |
Securities available for sale | 219,124 | [1] | 206,681 |
Securities held to maturity | 1,802 | [1] | 1,837 |
Residential mortgage loans held for sale | 1,142,655 | [1] | 1,075,936 |
Single tenant net lease loans held for sale | 15,656 | [1] | 23,020 |
SBA loan servicing rights | 4,429 | [1] | 4,447 |
Derivative assets (included in other assets) | 2,255 | 3,632 | |
Financial liabilities: | |||
Deposits | 1,267,035 | 1,227,580 | |
Federal Home Loan Bank borrowings | 258,377 | [1] | 250,000 |
Accrued interest payable | 251 | [1] | 258 |
Advance payments by borrowers for taxes and insurance | 1,205 | [1] | 2,076 |
Derivative liabilities (included in other liabilities) | 294 | 635 | |
Level 1 | |||
Financial assets: | |||
Cash and due from banks | 16,543 | 14,191 | |
Interest-bearing deposits with banks | 24,049 | 19,237 | |
Interest-bearing time deposits | 0 | ||
Residential mortgage loans held for sale | 0 | ||
Single tenant net lease loans held for sale | 0 | ||
FRB and FHLB stock | 0 | ||
Accrued interest receivable | 0 | ||
SBA loan servicing rights | 0 | ||
Derivative assets (included in other assets) | 0 | ||
Equity securities (included in other assets) | 368 | 112 | |
Financial liabilities: | |||
Deposits | 0 | ||
Federal Home Loan Bank borrowings | 0 | ||
Subordinated note | 0 | ||
Accrued interest payable | 0 | ||
Advance payments by borrowers for taxes and insurance | 0 | ||
Derivative liabilities (included in other liabilities) | 0 | ||
Level 1 | Small Business Administration Loans | |||
Financial assets: | |||
Residential mortgage loans held for sale | 0 | ||
Level 1 | Residential mortgage loans held for sale [Member] | |||
Financial assets: | |||
Residential mortgage loans held for sale | 0 | ||
Level 2 | |||
Financial assets: | |||
Cash and due from banks | 0 | ||
Interest-bearing deposits with banks | 0 | ||
Interest-bearing time deposits | 1,973 | 2,222 | |
Securities held to maturity | 1,990 | ||
Residential mortgage loans held for sale | 0 | ||
Single tenant net lease loans held for sale | 0 | ||
FRB and FHLB stock | 0 | ||
Accrued interest receivable | 6,837 | 6,243 | |
SBA loan servicing rights | 0 | ||
Derivative assets (included in other assets) | 421 | 1,465 | |
Equity securities (included in other assets) | 0 | ||
Financial liabilities: | |||
Deposits | 0 | ||
Federal Home Loan Bank borrowings | 252,354 | 251,877 | |
Subordinated note | 21,083 | ||
Accrued interest payable | 251 | 258 | |
Advance payments by borrowers for taxes and insurance | 1,205 | 1,188 | |
Derivative liabilities (included in other liabilities) | 200 | 35 | |
Level 2 | Small Business Administration Loans | |||
Financial assets: | |||
Residential mortgage loans held for sale | 27,312 | ||
Level 2 | Residential mortgage loans held for sale [Member] | |||
Financial assets: | |||
Residential mortgage loans held for sale | 167,813 | ||
Level 3 | |||
Financial assets: | |||
Cash and due from banks | 0 | ||
Interest-bearing deposits with banks | 0 | ||
Interest-bearing time deposits | 0 | ||
Residential mortgage loans held for sale | 1,196,330 | 1,124,226 | |
Single tenant net lease loans held for sale | 23,020 | ||
FRB and FHLB stock | 0 | ||
Accrued interest receivable | 0 | ||
SBA loan servicing rights | 4,436 | 4,646 | |
Derivative assets (included in other assets) | 1,834 | 2,167 | |
Equity securities (included in other assets) | 0 | ||
Financial liabilities: | |||
Deposits | 1,266,985 | 1,228,147 | |
Federal Home Loan Bank borrowings | 0 | ||
Subordinated note | 0 | ||
Accrued interest payable | 0 | ||
Advance payments by borrowers for taxes and insurance | 0 | ||
Derivative liabilities (included in other liabilities) | 94 | 600 | |
Level 3 | Small Business Administration Loans | |||
Financial assets: | |||
Residential mortgage loans held for sale | 0 | ||
Level 3 | Residential mortgage loans held for sale [Member] | |||
Financial assets: | |||
Residential mortgage loans held for sale | 0 | ||
SBA loan servicing rights | 54,758 | ||
Fair Value, Measurements, Recurring | |||
Financial assets: | |||
Derivative assets (included in other assets) | 2,555 | 3,632 | |
Equity securities (included in other assets) | 368 | 112 | |
Financial liabilities: | |||
Derivative liabilities (included in other liabilities) | 294 | 635 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Financial assets: | |||
Derivative assets (included in other assets) | 0 | ||
Equity securities (included in other assets) | 368 | 112 | |
Financial liabilities: | |||
Derivative liabilities (included in other liabilities) | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | |||
Financial assets: | |||
Derivative assets (included in other assets) | 421 | 1,465 | |
Equity securities (included in other assets) | 0 | ||
Financial liabilities: | |||
Derivative liabilities (included in other liabilities) | 200 | 35 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Financial assets: | |||
Derivative assets (included in other assets) | 1,834 | 2,167 | |
Equity securities (included in other assets) | 0 | ||
Financial liabilities: | |||
Derivative liabilities (included in other liabilities) | 94 | 600 | |
Fair Value, Measurements, Nonrecurring | |||
Financial assets: | |||
Single tenant net lease loans held for sale | 23,020 | ||
Fair Value, Measurements, Nonrecurring | Level 1 | |||
Financial assets: | |||
Single tenant net lease loans held for sale | 0 | ||
Fair Value, Measurements, Nonrecurring | Level 2 | |||
Financial assets: | |||
Single tenant net lease loans held for sale | 0 | ||
Fair Value, Measurements, Nonrecurring | Level 3 | |||
Financial assets: | |||
Single tenant net lease loans held for sale | 23,020 | ||
Estimate of Fair Value Measurement [Member] | |||
Financial assets: | |||
Cash and due from banks | 16,543 | 14,191 | |
Interest-bearing deposits with banks | 24,049 | 19,237 | |
Interest-bearing time deposits | 1,973 | 2,222 | |
Securities held to maturity | 1,802 | 1,837 | |
Residential mortgage loans held for sale | 1,142,655 | 1,075,936 | |
Single tenant net lease loans held for sale | 23,020 | ||
FRB and FHLB stock | 19,258 | 19,258 | |
Accrued interest receivable | 6,837 | 6,243 | |
SBA loan servicing rights | 4,429 | 4,447 | |
Derivative assets (included in other assets) | 2,255 | 3,632 | |
Equity securities (included in other assets) | 368 | 112 | |
Financial liabilities: | |||
Deposits | 1,267,035 | 1,227,580 | |
Federal Home Loan Bank borrowings | 258,377 | 250,000 | |
Subordinated note | 19,865 | ||
Accrued interest payable | 251 | 258 | |
Advance payments by borrowers for taxes and insurance | 1,205 | 1,188 | |
Derivative liabilities (included in other liabilities) | 294 | 635 | |
Estimate of Fair Value Measurement [Member] | Small Business Administration Loans | |||
Financial assets: | |||
Residential mortgage loans held for sale | 24,107 | ||
Estimate of Fair Value Measurement [Member] | Residential mortgage loans held for sale [Member] | |||
Financial assets: | |||
Residential mortgage loans held for sale | 167,813 | ||
SBA loan servicing rights | $ 54,758 | ||
Estimate of Fair Value Measurement [Member] | Level 1 | |||
Financial assets: | |||
Securities held to maturity | 0 | ||
Estimate of Fair Value Measurement [Member] | Level 2 | |||
Financial assets: | |||
Securities held to maturity | 2,054 | ||
Estimate of Fair Value Measurement [Member] | Level 3 | |||
Financial assets: | |||
Securities held to maturity | $ 0 | ||
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Details) - $ / shares | Oct. 06, 2008 | Dec. 31, 2021 | Sep. 30, 2021 |
Employee Stock Ownership Plan | |||
Total ESOP shares | 203,363 | 335,958 | 335,958 |
Employee stock ownership plan (per share) | $ 10 |
Stock Based Compensation Plan_2
Stock Based Compensation Plans - Fair Value Of Options Granted (Details) | 3 Months Ended |
Dec. 31, 2021$ / shares | |
Stock Based Compensation Plans | |
Expected dividend yield | 2.32% |
Risk-free interest rate | 1.55% |
Expected volatility | 27.00% |
Expected life of options | 7 years 1 month 6 days |
Weighted average fair value at grant date | $ 7.03 |
Stock Based Compensation Plan_3
Stock Based Compensation Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares | ||
Outstanding at beginning of year | 217,074 | |
Granted | 137,250 | |
Exercised | (3,600) | |
Forfeited or expired | 0 | |
Outstanding at end of year | 354,324 | |
Vested and expected to vest | 354,324 | |
Exercisable at end of year | 168,419 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of year | $ 16.58 | |
Granted | 26.72 | |
Forfeited or expired | 0 | |
Outstanding at end of year | 20.51 | |
Vested and expected to vest | 20.51 | |
Exercisable at end of year | $ 15.11 | |
Weighted Average Remaining Contractual Term (Years) | ||
Exercisable at end of period | 7 years 6 months | |
Vested and expected to vest | 7 years 6 months | |
Exercisable at end of period | 5 years 4 months 24 days | |
Aggregate Intrinsic Value | ||
Outstanding at end of period | $ 2,132 | |
Vested and expected to vest | 2,132 | |
Exercisable at end of period | $ 1,901 |
Stock Based Compensation Plan_4
Stock Based Compensation Plans - Non vested Restricted Shares (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares | ||
Nonvested | 17,799 | |
Granted | 45,750 | |
Vested | (12,225) | (13,125) |
Forfeited | 0 | |
Nonvested | 51,324 | |
Weighted Average Grant Date Fair Value | ||
Nonvested | $ 16.72 | |
Granted | 26.72 | |
Vested | 14.88 | |
Nonvested | $ 26.07 |
Stock Based Compensation Plan_5
Stock Based Compensation Plans - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Vesting period | 5 years | |
Terms of award | P10Y | |
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 stock options granted | 267,043 | |
Common stock available under incentive plan | 173,058 | |
Equity Incentive Plan 2010 [Member] | ||
Common stock available under incentive plan | 0 | |
Employee Stock Option [Member] | ||
Unrecognized compensation expenses related to nonvested stock options | $ 1 | |
Intrinsic value of stock options exercised | $ 0 | $ 29,000 |
Vesting period | 4 years 8 months 23 days | |
Proceeds from exercise of stock options | $ 0 | 0 |
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 52,000 | 23,000 |
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 | |
Employee Stock Option [Member] | 2021 Plan | ||
Common stock available under incentive plan | 129,793 | |
Restricted Stock [Member] | ||
Number of restricted shares granted | 45,750 | |
Unrecognized compensation expenses related to nonvested stock options | $ 1,300,000 | |
Fair value of restricted shares | $ 327,000 | $ 277,000 |
Restricted shares vested | 12,225 | 13,125 |
weighted average period of compensation expense (in years) | 4 years 8 months 1 day | |
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 75,000 | $ 48,000 |
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 | 89,015 | |
Common stock available under incentive plan | 43,265 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Notional Amount | $ 513,282 | $ 622,928 |
Asset Derivatives | 2,255 | 3,632 |
Liability Derivatives | 294 | 635 |
Interest rate lock commitments | ||
Notional Amount | 292,782 | 331,178 |
Asset Derivatives | 1,834 | 2,167 |
Liability Derivatives | 94 | 600 |
Forward mortgage loan sale contracts | ||
Notional Amount | 220,500 | 291,750 |
Asset Derivatives | 421 | 1,465 |
Liability Derivatives | $ 200 | $ 35 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Income (loss) Related To Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income (loss) related to derivative financial instruments | $ 868 | $ (10,885) |
Interest rate lock commitments | ||
Income (loss) related to derivative financial instruments | 173 | (3,522) |
Forward mortgage loan sale contracts | ||
Income (loss) related to derivative financial instruments | $ 695 | $ (7,363) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Derivative Financial Instruments | ||
Cash collateral derivative counterparty obligations | $ 2.4 | $ 2.4 |
Regulatory Capital - Bank's Act
Regulatory Capital - Bank's Actual Capital Amounts And Ratios (Details) $ in Thousands | Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) |
Consolidated | ||
Total capital (to risk weighted assets) Actual Amount | $ 195,652 | $ 193,476 |
Tier 1 capital (to risk-weighted assets) Actual Amount | 160,991 | 159,310 |
Common equity tier 1 capital (to risk-weighted assets) Actual Amount | 160,991 | 159,310 |
Tier 1 capital (to average adjusted total assets) Actual Amount | $ 160,991 | $ 159,310 |
Total capital (to risk weighted assets) Actual Ratio | 13.84 | 14.28 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 11.39 | 11.76 |
Common equity tier 1 capital (to risk-weighted assets) Actual Ratio | 11.39% | 11.76% |
Tier 1 capital (to average adjusted total assets) Actual Ratio | 9.81 | 9.73 |
Total capital (to risk weighted assets) Minimum For Capital Adequacy Purposes Amount | $ 113,093 | $ 108,401 |
Tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Amount | 84,820 | 81,301 |
Common equity tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Amount | 63,615 | 60,976 |
Tier 1 capital (to average adjusted total assets) Minimum For Capital Adequacy Purposes Amount | $ 65,676 | $ 65,480 |
Total capital (to risk weighted assets) Minimum For Capital Adequacy Purposes Ratio | 8 | 8 |
Tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Ratio | 6 | 6 |
Common equity tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Tier 1 capital (to average adjusted total assets) Minimum For Capital Adequacy Purposes Ratio | 4 | 4 |
Bank [Member] | ||
Total capital (to risk weighted assets) Actual Amount | $ 186,930 | $ 183,885 |
Tier 1 capital (to risk-weighted assets) Actual Amount | 172,150 | 169,584 |
Common equity tier 1 capital (to risk-weighted assets) Actual Amount | 172,150 | 169,584 |
Tier 1 capital (to average adjusted total assets) Actual Amount | $ 172,150 | $ 169,584 |
Total capital (to risk weighted assets) Actual Ratio | 13.25 | 13.60 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 12.20 | 12.54 |
Common equity tier 1 capital (to risk-weighted assets) Actual Ratio | 12.20% | 12.54% |
Tier 1 capital (to average adjusted total assets) Actual Ratio | 10.28 | 10.07 |
Total capital (to risk weighted assets) Minimum For Capital Adequacy Purposes Amount | $ 112,868 | $ 108,156 |
Tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Amount | 84,651 | 81,117 |
Common equity tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Amount | 63,489 | 60,838 |
Tier 1 capital (to average adjusted total assets) Minimum For Capital Adequacy Purposes Amount | $ 66,982 | $ 67,333 |
Total capital (to risk weighted assets) Minimum For Capital Adequacy Purposes Ratio | 8 | 8 |
Tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Ratio | 6 | 6 |
Common equity tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Tier 1 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 | $ 141,086 | $ 135,195 |
Tier 1 capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 112,868 | 108,156 |
Common equity tier 1 capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 91,706 | 87,877 |
Tier 1 capital (to average adjusted total assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 83,728 | $ 84,166 |
Total capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10 | 10 |
Tier 1 capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8 | 8 |
Common equity tier 1 capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Tier 1 capital (to average adjusted total assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5 | 5 |
Regulatory Capital - Additional
Regulatory Capital - Additional Information (Details) - USD ($) $ in Billions | 3 Months Ended | |||
Dec. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2019 | Sep. 30, 2015 | |
Regulatory Capital | ||||
Capital Conservation Buffer, Percentage | 2.50% | 2.50% | 2.50% | 0.00% |
Maximum amount to attain consolidated capital requirements | $ 3 |
Segment Reporting - Financial S
Segment Reporting - Financial Statements Information (Details) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($) | ||
Number of operating segments | segment | 3 | |||
Net interest income (loss) | $ 13,903 | [1] | $ 13,739 | |
Provision (credit) for loan losses | 526 | 668 | ||
Net interest income (loss) after provision | 13,377 | [1] | 13,071 | |
Net gains on sales of loans, SBA | 1,636 | [1] | 1,267 | |
Mortgage banking income | 12,744 | [1] | 43,229 | |
Noninterest income | 16,591 | [1] | 46,183 | |
Noninterest expense (income) | 24,852 | [1] | 44,402 | |
Income (loss) before income taxes | 5,116 | [1] | 14,852 | |
Income tax expense (benefit) | 811 | [1] | 4,527 | |
Segment profit (loss) | 4,305 | [1] | 10,325 | |
Non cash items: | ||||
Depreciation and amortization | 606 | 548 | ||
Segment assets | 1,764,589 | [1] | 1,872,911 | $ 1,721,394 |
Core Banking | ||||
Net interest income (loss) | 11,806 | 11,165 | ||
Provision (credit) for loan losses | (144) | 702 | ||
Net interest income (loss) after provision | 11,950 | 10,463 | ||
Mortgage banking income | (4) | (2) | ||
Noninterest income | 1,942 | 1,552 | ||
Noninterest expense (income) | 9,539 | 8,286 | ||
Income (loss) before income taxes | 4,353 | 3,729 | ||
Income tax expense (benefit) | 650 | 689 | ||
Segment profit (loss) | 3,703 | 3,040 | ||
Non cash items: | ||||
Depreciation and amortization | 534 | 461 | ||
Segment assets | 1,558,826 | 1,485,523 | ||
SBA Lending | ||||
Net interest income (loss) | 1,875 | 2,147 | ||
Provision (credit) for loan losses | 670 | (34) | ||
Net interest income (loss) after provision | 1,205 | 2,181 | ||
Net gains on sales of loans, SBA | 1,636 | 1,267 | ||
Noninterest income | 1,901 | 1,385 | ||
Noninterest expense (income) | 2,236 | 2,746 | ||
Income (loss) before income taxes | 870 | 820 | ||
Income tax expense (benefit) | 265 | 105 | ||
Segment profit (loss) | 605 | 715 | ||
Non cash items: | ||||
Depreciation and amortization | 8 | 11 | ||
Segment assets | 157,481 | 288,824 | ||
Mortgage Banking | ||||
Net interest income (loss) | 533 | 731 | ||
Net interest income (loss) after provision | 533 | 731 | ||
Mortgage banking income | 12,748 | 43,231 | ||
Noninterest income | 12,748 | 43,246 | ||
Noninterest expense (income) | 13,134 | 33,544 | ||
Income (loss) before income taxes | 147 | 10,433 | ||
Income tax expense (benefit) | 46 | 3,852 | ||
Segment profit (loss) | 101 | 6,581 | ||
Non cash items: | ||||
Depreciation and amortization | 48 | 59 | ||
Segment assets | 185,428 | 376,278 | ||
Other. | ||||
Net interest income (loss) | (311) | (304) | ||
Net interest income (loss) after provision | (311) | (304) | ||
Noninterest expense (income) | (57) | (174) | ||
Income (loss) before income taxes | (254) | (130) | ||
Income tax expense (benefit) | (150) | (119) | ||
Segment profit (loss) | (104) | (11) | ||
Non cash items: | ||||
Depreciation and amortization | 16 | 17 | ||
Segment assets | $ (137,146) | $ (277,714) | ||
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Sources of Noninterest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenue from contracts with customers | $ 1,325 | $ 1,185 | |
Gain on sale of SBA loans | 1,636 | [1] | 1,267 |
Mortgage banking income | 12,744 | 43,229 | |
Increase in cash value of life insurance | 254 | 186 | |
Real estate lease income | 148 | [1] | 147 |
Other | 484 | 169 | |
Other noninterest income | 15,266 | 44,998 | |
Total noninterest income | 16,591 | [1] | 46,183 |
Service charges on deposit accounts | |||
Revenue from contracts with customers | 434 | 396 | |
ATM and interchange fees | |||
Revenue from contracts with customers | 679 | 632 | |
Investment advisory income | |||
Revenue from contracts with customers | 188 | 134 | |
Other | |||
Revenue from contracts with customers | $ 24 | $ 23 | |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Lessee, Lease, Description [Line Items] | |||
ROU asset | $ 4,500,000 | $ 5,800,000 | |
Location of ROU asset | Other assets | ||
Lease liability | $ 4,568,000 | $ 5,900,000 | |
Location of lease liability | us-gaap:OtherLiabilities | ||
Lease expense | $ 305,000 | $ 551,000 | |
Operating lease ,Existence of option to extend | true | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term | 20 years |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Operating lease cost | $ 95 | $ 374 |
Short-term lease cost | 210 | 177 |
Total operating lease cost | $ 305 | $ 551 |
Leases - Future minimum commitm
Leases - Future minimum commitments due (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 |
Leases | ||
2022 (remaining nine months) | $ 281 | |
2023 | 333 | |
2024 | 254 | |
2025 | 203 | |
2026 | 203 | |
Thereafter | 5,202 | |
Total lease payments | 6,476 | |
Less imputed interest | (1,908) | |
Total | $ 4,568 | $ 5,900 |
Leases - Lease term, discount r
Leases - Lease term, discount rate and supplemental cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Leases | |||
Weighted-average remaining lease term (years) | 24 years 7 months 6 days | 21 years 6 months | |
Weighted-average discount rate | 2.85% | 2.53% | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 107 | $ 390 | |
ROU assets obtained in exchange for lease obligations: | |||
Operating leases | $ 1,843 |
Mortgage Banking Income (Detail
Mortgage Banking Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Mortgage Banking Income | |||
Origination and sale of mortgage loans (1) | $ 4,655 | $ 42,708 | |
Mortgage brokerage income | 331 | 15 | |
Net change in fair value of loans held for sale and interest rate lock commitments | (222) | (2,417) | |
Realized and unrealized hedging gains (losses) | 695 | (7,363) | |
Capitalized residential mortgage loan servicing rights | 4,504 | 12,872 | |
Net change in fair value of residential mortgage loan servicing rights | 675 | (3,065) | |
Provisions for loan repurchases and indemnifications | (14) | (463) | |
Net loan servicing income | 2,120 | 942 | |
Total mortgage banking income | $ 12,744 | [1] | $ 43,229 |
[1] | All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. |