Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 07, 2022 | Mar. 31, 2022 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Sep. 30, 2022 | ||
Entity File Number | 1-34155 | ||
Entity Registrant Name | FIRST SAVINGS FINANCIAL GROUP, INC. | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 37-1567871 | ||
Entity Address, Address Line One | 702 North Shore Drive, Suite 300, | ||
Entity Address, City or Town | Jeffersonville | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 47130 | ||
City Area Code | 812 | ||
Local Phone Number | 283-0724 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | FSFG | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 136 | ||
Entity Common Stock, Shares Outstanding | 6,991,313 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001435508 | ||
Amendment Flag | false | ||
Auditor Name | Monroe Shine & Co., Inc. | ||
Auditor Firm ID | 590 | ||
Auditor Location | New Albany, Indiana |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
ASSETS | ||
Cash and due from banks | $ 18,312 | $ 14,191 |
Interest-bearing deposits with banks | 23,353 | 19,237 |
Total cash and cash equivalents | 41,665 | 33,428 |
Interest-bearing time deposits | 1,613 | 2,222 |
Securities available for sale, at fair value | 316,517 | 206,681 |
Securities held to maturity | 1,558 | 1,837 |
Loans held for sale, residential mortgage at fair value | 38,579 | 167,813 |
Loans held for sale, single tenant net lease | 23,020 | |
Loans held for sale, Small Business Administration | 21,883 | 24,107 |
Loans, net of allowance for loan losses of $15,360 at September 30, 2022 and $14,301 at September 30, 2021 | 1,436,555 | 1,075,936 |
Federal Reserve Bank and Federal Home Loan Bank stock, at cost | 20,004 | 19,258 |
Premises and equipment | 27,100 | 27,669 |
Other real estate owned, held for sale | 203 | 1,728 |
Accrued interest receivable: | ||
Loans | 5,379 | 4,398 |
Securities | 2,953 | 1,845 |
Cash surrender value of life insurance | 45,145 | 44,152 |
Goodwill | 9,848 | 9,848 |
Core deposit intangibles | 775 | 988 |
Residential mortgage loan servicing rights, at fair value | 63,263 | 49,579 |
Nonresidential mortgage loan servicing rights | 141 | |
SBA loan servicing rights | 3,790 | 4,447 |
Other assets | 20,691 | 22,438 |
Total Assets | 2,057,662 | 1,721,394 |
Deposits: | ||
Noninterest-bearing | 340,172 | 291,039 |
Interest-bearing | 1,175,662 | 936,541 |
Total deposits | 1,515,834 | 1,227,580 |
Federal Home Loan Bank borrowings | 307,303 | 250,000 |
Other borrowings | 50,217 | 19,865 |
Accrued interest payable | 1,302 | 258 |
Advance payments by borrowers for taxes and insurance | 1,207 | 2,076 |
Accrued expenses and other liabilities | 29,176 | 41,238 |
Total Liabilities | 1,905,039 | 1,541,017 |
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 7,757,271 shares (7,708,566 at September 30, 2021); outstanding 6,970,631 shares (7,125,888 shares at September 30, 2021) | 78 | 78 |
Additional paid-in capital | 26,770 | 25,721 |
Retained earnings - substantially restricted | 162,985 | 150,185 |
Accumulated other comprehensive income (loss) | (27,079) | 8,900 |
Unearned stock compensation | (969) | (138) |
Less treasury stock, at cost - 786,640 shares (582,678 shares at September 30, 2021) | (9,162) | (4,369) |
Total Stockholders' Equity | 152,623 | 180,377 |
Total Liabilities and Stockholders' Equity | $ 2,057,662 | $ 1,721,394 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Loans, net of allowance for loan losses | $ 15,360 | $ 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, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,757,271 | 7,708,566 |
Common stock, shares outstanding | 6,970,631 | 7,125,888 |
Treasury stock, shares | 786,640 | 582,678 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
INTEREST INCOME | |||
Loans, including fees | $ 61,913 | $ 58,114 | $ 50,167 |
Securities: | |||
Taxable | 2,334 | 1,771 | 2,075 |
Tax-exempt | 5,861 | 4,719 | 4,423 |
Dividend income | 729 | 582 | 617 |
Interest-bearing deposits with banks | 161 | 73 | 417 |
Total interest income | 70,998 | 65,259 | 57,699 |
INTEREST EXPENSE | |||
Deposits | 4,902 | 3,195 | 5,659 |
Federal funds purchased and repurchase agreements | 3 | ||
Federal Home Loan Bank borrowings | 3,333 | 3,199 | 3,345 |
Federal Reserve PPPLF borrowings | 400 | 220 | |
Other borrowings | 2,111 | 1,293 | 1,311 |
Total interest expense | 10,346 | 8,087 | 10,538 |
Net interest income | 60,652 | 57,172 | 47,161 |
Provision (credit) for loan losses | 1,908 | (1,767) | 7,962 |
Net interest income after provision (credit) for loan losses | 58,744 | 58,939 | 39,199 |
NONINTEREST INCOME | |||
Service charges on deposit accounts | 1,864 | 1,468 | 1,581 |
ATM and interchange fees | 2,753 | 2,399 | 2,116 |
Net gain on sales of available for sale securities and time deposits | 476 | 7 | |
Net unrealized gain (loss) on equity securities | (10) | 46 | (19) |
Net gain on sales of loans, Small Business Administration | 3,698 | 8,740 | 5,673 |
Net gain on sales of loans, single tenant net lease | 719 | ||
Mortgage banking income | 38,337 | 104,504 | 120,733 |
Increase in cash surrender value of life insurance | 993 | 785 | 732 |
Gain on life insurance | 140 | ||
Commission income | 717 | 589 | 288 |
Real estate lease income | 571 | 592 | 589 |
Net gain (loss) on premises and equipment | 78 | (8) | |
Income from on tax credit investment | 12 | 32 | 426 |
Other income | 1,097 | 1,063 | 1,233 |
Total noninterest income | 51,227 | 120,436 | 133,351 |
NONINTEREST EXPENSE | |||
Compensation and benefits | 61,530 | 102,951 | 92,904 |
Occupancy and equipment | 8,167 | 9,906 | 8,958 |
Data processing | 2,623 | 2,546 | 2,153 |
Advertising | 3,199 | 6,574 | 7,346 |
Professional fees | 4,639 | 5,583 | 3,606 |
FDIC insurance premiums | 527 | 446 | 405 |
Net (gain) loss on other real estate owned | 115 | (64) | (1) |
Other operating expenses | 10,349 | 11,467 | 10,437 |
Total noninterest expense | 91,149 | 139,409 | 125,808 |
Income before income taxes | 18,822 | 39,966 | 46,742 |
Income tax expense | 2,378 | 9,997 | 12,661 |
Net Income | 16,444 | 29,969 | 34,081 |
Less: net income attributable to noncontrolling interests | 0 | 402 | 727 |
Net Income Attributable to First Savings Financial Group, Inc. | $ 16,444 | $ 29,567 | $ 33,354 |
Net income per share: | |||
Basic | $ 2.33 | $ 4.16 | $ 4.72 |
Diluted | $ 2.30 | $ 4.12 | $ 4.68 |
Weighted average shares outstanding: | |||
Basic | 7,058,550 | 7,107,786 | 7,070,040 |
Diluted | 7,141,846 | 7,173,733 | 7,127,862 |
Dividends per share | $ 0.51 | $ 0.36 | $ 0.22 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) | 12 Months Ended | |
Sep. 15, 2021 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF INCOME | ||
Stock split ratio | 0.33 | 3 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net Income | $ 16,444 | $ 29,969 | $ 34,081 |
Unrealized gains (losses) on securities available for sale: | |||
Unrealized holding gains (losses) arising during the period | (45,068) | (2,923) | 4,886 |
Income tax (expense) benefit | 9,464 | 614 | (968) |
Net of tax amount | (35,604) | (2,309) | 3,918 |
Less: reclassification adjustment for realized gains included in net income | (476) | 0 | (7) |
Income tax expense | 101 | 0 | 2 |
Net of tax amount | (375) | 0 | (5) |
Other Comprehensive Income (Loss) | (35,979) | (2,309) | 3,913 |
Comprehensive Income (Loss) | (19,535) | 27,660 | 37,994 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 402 | 727 |
Comprehensive Income (Loss) Attributable to First Savings Financial Group, Inc. | $ (19,535) | $ 27,258 | $ 37,267 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings Cumulative Effect Period Of Adoption Adjustment Member | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Unearned Stock Compensation | Treasury Stock | Noncontrolling Interests in Subsidiary | Cumulative Effect Period Of Adoption Adjustment Member | Total |
Balances at Sep. 30, 2019 | $ 26 | $ 27,494 | $ 91,228 | $ 7,296 | $ (446) | $ (4,545) | $ 204 | $ 121,257 | ||
Net Income | 33,354 | 727 | 34,081 | |||||||
Other comprehensive income (loss) | 3,913 | 3,913 | ||||||||
Common stock dividends | (1,590) | (1,590) | ||||||||
Distributions to noncontrolling interests | (638) | (638) | ||||||||
Restricted stock grants | 95 | (95) | ||||||||
Stock compensation expense | 86 | 193 | 279 | |||||||
Stock option exercises | (195) | 594 | 399 | |||||||
Purchase of treasury shares | (302) | (302) | ||||||||
Balances at Sep. 30, 2020 | 26 | 27,480 | 123,158 | 11,209 | (348) | (4,253) | 293 | 157,565 | ||
Cumulative effect adjustment, adoption of ASU 2016-02 | $ 166 | $ 166 | ||||||||
Net Income | 29,567 | 402 | 29,969 | |||||||
Acquisition of minority interests in Q2 | (1,874) | $ (695) | (2,569) | |||||||
Other comprehensive income (loss) | (2,309) | (2,309) | ||||||||
Common stock dividends | (2,540) | (2,540) | ||||||||
Restricted stock forfeitures | (25) | 25 | ||||||||
Stock compensation expense | 92 | 185 | 277 | |||||||
Stock option exercises | 100 | 2 | 102 | |||||||
Purchase of treasury shares | (118) | (118) | ||||||||
Three-for-one stock split in the form of a stock dividend | 52 | (52) | ||||||||
Balances at Sep. 30, 2021 | 78 | 25,721 | 150,185 | 8,900 | (138) | (4,369) | 180,377 | |||
Cumulative effect adjustment, adoption of ASU 2016-02 | 4,600 | 150,185 | ||||||||
Net Income | 16,444 | 16,444 | ||||||||
Acquisition of minority interests in Q2 | (509) | (509) | ||||||||
Other comprehensive income (loss) | (35,979) | (35,979) | ||||||||
Common stock dividends | (3,644) | (3,644) | ||||||||
Restricted stock grants | 1,222 | (1,222) | ||||||||
Stock compensation expense | 296 | 391 | 687 | |||||||
Stock option exercises | 40 | 40 | ||||||||
Purchase of treasury shares | (4,793) | (4,793) | ||||||||
Balances at Sep. 30, 2022 | $ 78 | $ 26,770 | $ 162,985 | $ (27,079) | $ (969) | $ (9,162) | 152,623 | |||
Cumulative effect adjustment, adoption of ASU 2016-02 | $ 4,600 | $ 162,985 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended | ||
Sep. 30, 2022 $ / shares shares | Sep. 30, 2021 $ / shares shares | Sep. 30, 2020 $ / shares shares | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||
Common stock dividends - per share | $ / shares | $ 0.51 | $ 0.36 | $ 0.22 |
Restricted stock grants - shares | 45,750 | 4,308 | |
Restricted stock forfeitures - shares | 1,500 | ||
Stock option exercises - shares | 2,955 | 6,840 | 85,083 |
Purchase of treasury shares | 203,962 | 5,424 | 14,106 |
Stock split ratio | 3 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $ 16,444 | $ 29,969 | $ 34,081 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision (credit) for loan losses | 1,908 | (1,767) | 7,962 |
Depreciation and amortization | 2,448 | 2,300 | 1,858 |
Amortization of premiums and accretion of discounts on securities, net | 903 | 799 | 596 |
Amortization and accretion of fair value adjustments on loans, net | (1,529) | (1,490) | (935) |
Loans originated for sale | (1,677,276) | (4,177,003) | (3,679,783) |
Proceeds on sales of loans | 1,806,926 | 4,347,642 | 3,597,497 |
Net realized and unrealized (gain) loss on loans held for sale | 12,376 | (56,677) | (88,738) |
Capitalization of loan servicing rights | (12,167) | (38,659) | (25,508) |
Net change in value of loan servicing rights | (1,001) | 10,084 | 4,021 |
Net realized and unrealized (gain) loss on other real estate owned | 115 | (74) | (16) |
Net gain on sales of available for sale securities and time deposits | (476) | (7) | |
Increase in cash surrender value of life insurance | (993) | (785) | (732) |
Gain on life insurance | (140) | ||
Net (gain) loss on equity securities | 10 | (46) | 19 |
Net (gain) loss on sale of premises and equipment | (78) | 8 | |
Income from tax credit investments | (12) | (32) | (426) |
Deferred income taxes | 2,095 | 7,856 | 4,494 |
Stock compensation expense | 688 | 277 | 279 |
(Increase) decrease in accrued interest receivable | (2,089) | 219 | (1,421) |
Increase (decrease) in accrued interest payable | 1,044 | (425) | (252) |
Change in other assets and liabilities, net | (602) | (7,077) | 7,314 |
Net Cash Provided By (Used In) Operating Activities | 148,812 | 114,893 | (139,689) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in interest-bearing time deposits | (245) | (497) | (1,145) |
Proceeds from sales and maturities of interest-bearing time deposits | 840 | 1,225 | 445 |
Purchase of securities available for sale | (211,141) | (29,517) | (37,809) |
Proceeds from sales of securities available for sale | 33,494 | 3,180 | |
Proceeds from maturities of securities available for sale | 13,598 | 16,737 | 8,235 |
Proceeds from maturities of securities held to maturity | 260 | 247 | 248 |
Principal collected on securities | 8,262 | 4,375 | 6,005 |
Net increase in loans | (348,738) | (26,566) | (304,202) |
Proceeds from redemption of Federal Reserve Bank and Federal Home Loan Bank stock | 592 | 53 | |
Purchase of Federal Reserve Bank and Federal Home Loan Bank stock | (1,338) | (2,018) | (4,253) |
Investment in cash surrender value of life insurance | (12,042) | (4,481) | |
Proceeds from life insurance | 575 | ||
Proceeds from sale of other real estate owned | 689 | 500 | 182 |
Purchase of premises and equipment | (835) | (5,640) | (7,308) |
Proceeds from sales of premises and equipment | 438 | 550 | |
Distributions received from tax credit investments | 920 | ||
Investment in partnership interests | (2,242) | ||
Acquisition of minority interests in Q2 | (3,172) | ||
Net Cash Used In Investing Activities | (506,229) | (55,877) | (339,433) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase in deposits | 288,254 | 179,504 | 213,692 |
Net decrease in federal funds purchased | (4,000) | ||
Increase (decrease) in Federal Home Loan Bank line of credit | 12,303 | (20,858) | 8,314 |
Proceeds from Federal Home Loan Bank advances | 1,130,000 | 455,000 | 350,000 |
Repayment of Federal Home Loan Bank advances | (1,085,000) | (495,000) | (270,000) |
Net increase (decrease) in Federal Reserve PPPLF borrowings | (174,834) | 174,834 | |
Net proceeds from subordinated notes | 30,258 | ||
Net increase (decrease) in advance payments by borrowers for taxes and insurance | (869) | (1,427) | 709 |
Proceeds from exercise of stock options | 27 | 148 | |
Taxes paid on stock award shares for employees | (48) | (41) | (53) |
Purchase of treasury shares | (4,745) | ||
Dividends paid on common stock | (4,499) | (1,685) | (1,590) |
Distributions to noncontrolling interests | (638) | ||
Net Cash Provided By (Used In) Financing Activities | 365,654 | (59,314) | 471,416 |
Net Increase (Decrease) in Cash and Cash Equivalents | 8,237 | (298) | (7,706) |
Cash and cash equivalents at beginning of year | 33,428 | 33,726 | 41,432 |
Cash and Cash Equivalents at End of Year | $ 41,665 | $ 33,428 | $ 33,726 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (1) Nature of Operations First Savings Financial Group, Inc. (the “Company”) is a financial holding company and the parent of First Savings Bank (the “Bank”) and First Savings Insurance Risk Management, Inc. (the “Captive”). The Bank, which is a wholly-owned Indiana-chartered commercial bank subsidiary of the Company, provides a variety of banking services to individuals and business customers through 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 residential mortgage, commercial mortgage, construction, commercial business and consumer loans, and to a lesser extent, to invest in mortgage-backed securities and other securities. The Bank has two wholly owned subsidiaries: First Savings Investments, Inc., a Nevada corporation that manages a securities portfolio and Southern Indiana Financial Corporation, which is currently inactive. On April 25, 2017, the Bank formed Q2 Business Capital, LLC (“Q2”), which is an Indiana limited liability company that specializes in the origination and servicing of U.S. Small Business Administration (“SBA”) loans. The Bank originally owned 51% of Q2’s membership interests. On December 31, 2020, the Bank completed the acquisition of the minority interests in Q2, and Q2 became a wholly-owned subsidiary of the Bank. As part of the acquisition of the minority interests, the Bank paid or expects to pay total consideration of $3.7 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 $581,000 and a reduction of additional paid-in capital of $2.4 million. The Captive, which is a wholly-owned insurance subsidiary of the Company, is a Nevada corporation that provides property and casualty insurance to the Company, the Bank and the Bank’s active subsidiaries. In addition, the Captive provides reinsurance to 11 other third-party insurance captives for which insurance may not be currently available or economically feasible in the insurance marketplace. Basis of Consolidation and Reclassifications The consolidated financial statements include the accounts of the Company and its subsidiaries, have been prepared in accordance with accounting principles generally accepted in the United States of America and conform to general practices within the banking industry. Intercompany balances and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. The reclassifications had no effect on net income or stockholders’ equity. Statements of Cash Flows For purposes of the statements of cash flows, the Company has defined cash and cash equivalents as cash on hand, amounts due from banks (including cash items in process of clearing), interest-bearing deposits with other banks having an original maturity of 90 days or less and money market funds. (1 - continued) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate and other assets acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan losses and the valuation of other real estate owned, management obtains independent appraisals for significant properties. A substantial portion of the Company’s loan portfolio consists of single-family residential and commercial real estate loans to customers in the southern Indiana and Louisville, Kentucky metropolitan area. Accordingly, the ultimate collectability of a substantial portion of the Company’s loan portfolio and the recovery of the carrying amount of other real estate owned are susceptible to changes in local market conditions. While management uses available information to recognize losses on loans and other real estate owned, further reductions in the carrying amounts of loans and other real estate owned may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans and other real estate owned. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible the estimated losses on loans and other real estate owned may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Investment Securities Securities Available for Sale Amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity, adjusted for anticipated prepayments. Unrealized gains and losses, net of tax, on securities available for sale are included in other comprehensive income and the accumulated unrealized holding gains and losses are reported as a separate component of equity until realized. Realized gains and losses on the sale of securities available for sale are determined using the specific identification method and are included in other noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. (1 - continued) Investment Securities - continued Securities Held to Maturity Declines in the fair value of individual available for sale and held to maturity securities below their amortized cost that are other than temporary result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than amortized cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value. Equity Securities Investments in non-marketable equity securities such as FRB stock and FHLB stock are carried at cost and are classified as restricted securities. The Bank is a member of the FHLB system and is required to own FHLB stock, the amount of which depends on the level of borrowings and other factors. Both cash and stock dividends received from these investments are included in dividend income. Impairment testing on these investments is based on applicable accounting guidance and the cost basis is reduced when impairment is deemed to be other-than-temporary. Loans Held for Sale The Company has elected to record substantially all residential mortgage loans held for sale at fair value in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 825-10. Net unrealized gains and losses are included in mortgage banking income in the accompanying consolidated statements of income. Realized gains on sales of residential mortgage loans are determined using the specific identification method and are included in mortgage banking income. The Company originates loans to customers under the SBA 7(a) and other programs that generally provide for SBA guarantees of 75% to 90% of each loan. The Company intends to sell the guaranteed portion of the SBA loans. The guaranteed portion of the SBA loans was classified as loans held for sale at September 30, 2022 and 2021. At September 30, 2022 and 2021, SBA loans held for sale totaling $21.9 million and $24.1 million, respectively, were carried at the lower of aggregate cost or fair value. Realized gains and losses on sales of SBA loans held for sale are determined based on the allocation of participating interests sold and retained and are included in net gain on sales of SBA loans in the accompanying consolidated statements of income. Direct loan origination costs and fees related to SBA loans held for sale are deferred upon origination and are recognized as an adjustment to the gain or loss on the date of sale. SBA loans held for sale are sold on a servicing retained basis. (1 - continued) Loans Held for Sale - continued During 2022 and 2021 the Company transferred certain single tenant net lease loans from loans to loans held for sale and sold those loans on the secondary market. At September 30, 2022, there were no single tenant net lease loans held for sale. At September 30, 2021, single tenant net lease loans held for sale totaling $23.0 million were carried at the lower of aggregate cost or fair value. Realized gains and losses on sales of single tenant net lease loans held for sale are determined using the specific identification method. Single tenant net lease loans held for sale are sold on a servicing retained basis. Transfers of Financial Assets The Company accounts for transfers and servicing of financial assets in accordance with FASB ASC 860, Transfers and Servicing Transfers of a portion of a loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, and the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. The Company sells financial assets in the normal course of business, the majority of which are related to the SBA-guaranteed portion of loans, residential mortgage loan sales through established programs, and commercial loan sales through participation agreements. In accordance with accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. When the Company sells financial assets, it may retain servicing rights and/or other interests in the financial assets. The gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the servicing right recognized, and the consideration received and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests held by the Company are carried at the lower of cost or fair value, with the exception of mortgage servicing rights related to sales of residential mortgage loans, which are carried at fair value. Loans and Allowance for Loan Losses Loans Held for Investment Loans are stated at unpaid principal balances, less net deferred loan fees and the allowance for loan losses. Loan origination and commitment fees, as well as certain direct costs of underwriting and closing loans, are deferred and amortized as a yield adjustment to interest income over the lives of the related loans using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. (1 - continued) Loans and Allowance for Loan Losses - continued Nonaccrual Loans The recognition of income on a loan is discontinued and previously accrued interest is reversed when interest or principal payments become 90 days past due unless, in the opinion of management, the outstanding interest remains collectible. Past due status is determined based on contractual terms. Generally, by applying the cash receipts method, interest income on nonaccrual loans is subsequently recognized only as received until the loan is returned to accrual status. The cash receipts method is used when the likelihood of further loss on the loan is remote. Otherwise, the Company applies the cost recovery method and applies all payments as a reduction of the unpaid principal balance until the loan qualifies for return to accrual status. Interest income on impaired loans is recognized using the cost recovery method, unless the likelihood of further loss is considered remote. A loan is restored to accrual status when all principal and interest payments are brought current and the borrower has demonstrated the ability to make future payments of principal and interest as scheduled, which generally requires that the borrower demonstrate a period of performance of at least six consecutive months. Loan Charge-Offs For portfolio segments other than consumer loans, the Company’s practice is to charge-off any loan or portion of a loan when the loan is determined by management to be uncollectible due to the borrower’s failure to meet repayment terms, the borrower’s deteriorating or deteriorated financial condition, depreciation of the underlying collateral, the loan’s classification as a loss by regulatory examiners, or for other reasons. A partial charge-off is recorded on a loan when the uncollectibility of a portion of the loan has been confirmed, such as when a loan is discharged in bankruptcy, the collateral is liquidated, a loan is restructured at a reduced principal balance, or other identifiable events that lead management to determine the full principal balance of the loan will not be repaid. A specific reserve is recognized as a component of the allowance for estimated losses on loans individually evaluated for impairment. Partial charge-offs of loans are included in the Company’s historical loss experience used to estimate the general component of the allowance for loan losses as discussed below. Consumer loans not secured by real estate are typically charged off at 90 days past due, or earlier if deemed uncollectible, unless the loans are in the process of collection. Overdrafts are charged off after 45 days past due. Charge-offs are typically recorded on loans secured by real estate when the property is foreclosed upon when the carrying value of the loan exceeds the property’s fair value, less estimated costs to sell. Allowance for Loan Losses The allowance for loan losses reflects management’s judgment of probable incurred loan losses at the balance sheet date. Additions to the allowance for loan losses are made by the provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company evaluates the allowance for loan losses on a quarterly basis based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. (1 - continued) Loans and Allowance for Loan Losses - continued The allowance consists of specific and general components. The specific component relates to loans that are individually evaluated for impairment. A specific reserve is established when the underlying discounted collateral value (or present value of estimated future cash flows) of the impaired loan is lower than the carrying value of that loan. The general component covers loans not considered to be impaired. Such loans are pooled by segment and losses are modeled using annualized historical loss experience adjusted for qualitative factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 60-month period with the exception of the SBA loan portfolio which uses lookback periods of 24 to 48 months. The Company’s historical loss experience is then adjusted for qualitative factors that are reviewed on a quarterly basis based on the risks present for each portfolio segment. Management considers changes and trends in the following qualitative loss factors: levels of and trends in delinquencies and impaired loans; trends in the volume and term of new loan originations; national and local economic trends and conditions; changes in lending policies, procedures and practices; changes in the experience and ability of lending management and other staff; changes in the quality and depth of the Company’s loan review system; trends in collateral valuation in the Company’s lending area; the existence and effect of any concentrations of credit and other factors as determined by management including peer data and the economic uncertainties surrounding the coronavirus (“COVID-19”) pandemic. Each qualitative factor is evaluated and a qualitative factor adjustment is applied to the actual historical loss factors in determining the adjusted loss factors used in management’s allowance for loan losses adequacy calculation. At September 30, 2022, the Company’s allowance for loan losses totaled $15.4 million, of which $13.4 million related to qualitative factor adjustments. At September 30, 2021, the Company’s allowance for loan losses totaled $14.3 million, of which $13.1 million related to qualitative factor adjustments. Management exercises significant judgment in evaluating the relevant historical loss experience and the qualitative factors. Management also monitors the differences between estimated and actual incurred loan losses for loans considered impaired in order to evaluate the effectiveness of the estimation process and make any changes in the methodology as necessary. The following portfolio segments are considered in the allowance for loan loss analysis: residential real estate, commercial real estate (including single tenant net lease and loans originated through SBA programs), multi-family residential real estate, construction, land and land development, commercial business (including loans originated through SBA programs) and consumer. Residential real estate loans (including first-lien home equity lines of credit) primarily consist of loans to individuals for the purchase or refinance of their primary residence, with a small portion of the segment secured by non-owner-occupied residential investment properties. The risks associated with residential real estate loans are closely correlated to the local housing market and general economic conditions, as repayment of the loans is primarily dependent on the borrower’s or tenant’s personal cash flow and employment status. (1 - continued) Loans and Allowance for Loan Losses - continued Commercial real estate loans include the single tenant net lease loans and loans originated through SBA programs in addition to the Company’s core commercial loans, and are comprised of loans secured by various types of collateral including office buildings, warehouses, retail space and mixed use buildings located in the Company’s primary lending area and in other states. Risks related to commercial real estate lending are related to the market value of the property taken as collateral, the underlying cash flows and general economic conditions. Repayment of these loans is generally dependent on the ability of the borrower to attract tenants at lease rates that provide for adequate debt service and can be impacted by general economic conditions, which impact vacancy rates. The Company generally obtains loan guarantees from financially capable parties for commercial real estate loans. Multi-family residential real estate loans primarily consist of loans secured by apartment buildings and other multi-tenant developments generally located in the Company’s primary lending area. Repayment of these loans is primarily dependent on the borrower’s ability to attract tenants and collect rents that provide for adequate debt service. The risks associated with these loans are closely correlated to the local housing market and general economic conditions. Construction loans consist of single-family residential properties, multi-family properties and commercial projects, and include both owner-occupied and speculative investment properties. Risks inherent in construction lending are related to the market value of the property held as collateral, the cost and timing of constructing or improving a property, the borrower’s ability to use funds generated by a project to service a loan until a project is completed, movements in interest rates and the real estate market during the construction phase, and the ability of the borrower to obtain permanent financing. Land and land development loans primarily consist of loans secured by farmland and vacant land held for long-term investment or development. The risks associated with land and land development loans are related to the market value of the property taken as collateral and the underlying cash flows for loans secured by farmland, and general economic conditions. Commercial business loans include loans originated through SBA programs and lines of credit to businesses, term loans and letters of credit secured by business assets such as equipment, accounts receivable, inventory, or other assets excluding real estate and are generally made to finance capital expenditures or fund operations. Commercial loans contain risks related to the value of the collateral securing the loan and the repayment is primarily dependent upon the financial success and viability of the borrower. As with commercial real estate loans, the Company generally obtains loan guarantees from financially capable parties for commercial business loans. In addition, in an effort to support our communities during the pandemic, the Company participated in the Paycheck Protection Program (“PPP”) and the majority of the Company’s SBA clients applied for participation in the SBA’s PPP loan program. All PPP loans are 100% guaranteed by the SBA. Consumer loans consist primarily of home equity lines of credit and other loans secured by junior liens on the borrower’s personal residence, home improvement loans, automobile and truck loans, boat loans, mobile home loans, loans secured by savings deposits and other personal loans. The risks associated with these loans are related to the local housing market and local economic conditions including the unemployment level. There were no significant changes to the Company’s accounting policies or methodology used to estimate the allowance for loan losses during the years ended September 30, 2022, 2021, and 2020. (1 - continued) Loans and Allowance for Loan Losses - continued Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Values for collateral dependent loans are generally based on appraisals obtained from independent licensed real estate appraisers, with adjustments applied for estimated costs to sell the property, estimated costs to complete unfinished or repair damaged property, and other known defects. New appraisals are generally obtained for all significant properties when a loan is identified as impaired. Generally, a property is considered significant if the value of the property is estimated to exceed $250,000. Subsequent appraisals are obtained as needed or if management believes there has been a significant change in the market value of a collateral property securing an impaired loan. In instances where it is not deemed necessary to obtain a new appraisal, management would base its impairment and allowance for loan loss analysis on the original appraisal with adjustments for current conditions based on management’s assessment of market factors and management’s inspection of the property. Troubled Debt Restructurings The modification of a loan is considered to be a troubled debt restructuring (“TDR”) if the debtor is experiencing financial difficulties and the Company grants a concession to the debtor that it would not otherwise consider. By granting the concession, the Company expects to obtain more cash or other value from the debtor, or to increase the probability of receipt, than would be expected by not granting the concession. The concession may include, but is not limited to, reduction of the stated interest rate of the loan, reduction of accrued interest, extension of the maturity date or reduction of the face amount of the debt. A concession will be granted when, as a result of the restructuring, the Company does not expect to collect all amounts due, including interest at the original stated rate. A concession may also be granted if the debtor is not able to access funds elsewhere at a market rate for debt with similar risk characteristics as the restructured debt. The Company’s determination of whether a loan modification is a TDR considers the individual facts and circumstances surrounding each modification. A TDR can involve a loan remaining on nonaccrual, moving to nonaccrual or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Generally, a nonaccrual loan that is restructured in a TDR remains on nonaccrual status for a period of at least six months following the restructuring in order to ensure that the borrower performs in accordance with the restructured terms, including consistent and timely payments of at least six consecutive months according to the restructured terms. (1 - continued) Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. The Company uses the straight line method of computing depreciation at rates adequate to amortize the cost of the applicable assets over their estimated useful lives. Maintenance and repairs are expensed as incurred. The cost and related accumulated depreciation of assets sold, or otherwise disposed of, are removed from the related accounts and any gain or loss is included in earnings. Other Real Estate Owned Other real estate owned includes formally foreclosed property, property obtained via a deed in lieu of foreclosure and former banking facilities held for sale. At the time of acquisition, foreclosed real estate is recorded at its fair value, less estimated costs to sell, which becomes the property’s new cost basis. Any write-downs based on the property’s fair value at the date of acquisition are charged to the allowance for loan losses. After acquisition or the decision to classify property as held for sale, valuations are periodically performed by management and property held for sale is carried at the lower of the new cost basis or fair value, less estimated costs to sell. Costs incurred in maintaining other real estate owned and subsequent impairment adjustments to the carrying amount of a property, if any, are included in noninterest expense. Cash Surrender Value of Life Insurance The Bank has purchased life insurance policies on certain directors, officers and key employees to help offset costs associated with the Bank’s compensation and benefit programs. The Bank is the owner and is a joint or sole beneficiary of the policies. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Income from the increase in cash surrender value of the policies and income from the recognition of death benefits is reported in noninterest income. Goodwill and Other Intangibles Goodwill recognized in a business combination represents the excess of the fair value of consideration transferred over the fair value of assets acquired and liabilities assumed. Goodwill is evaluated for possible impairment at least annually or more frequently upon the occurrence of an event or change in circumstances that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to: (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. Other intangible assets consist of acquired core deposit intangibles. Core deposit intangibles are amortized over the estimated economic lives of the acquired core deposits. The carrying amount of core deposit intangibles and the remaining estimated economic life are evaluated annually or whenever events or circumstances indicate the carrying amount may not be recoverable or the remaining period of amortization requires revision. (1 - continued) Derivative Financial Instruments In connection with the origination of residential mortgage loans to be sold in the secondary market, the Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (i.e., rate lock commitment). The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 15 to 60 days. The Company also enters into forward mortgage loan commitments to sell to various investors to protect itself against exposure to various factors and to reduce sensitivity to interest rate movements. Both the interest rate lock commitments and the related forward mortgage loan sales contracts are considered derivatives and are recorded on the balance sheet at fair value in accordance with FASB ASC 815, Derivatives and Hedging Benefit Plans The Company provides a contributory defined contribution plan available to all eligible employees. The Company also established a leveraged employee stock ownership plan (“ESOP”) on October 6, 2008 that includes substantially all employees. The Company accounts for the ESOP in accordance with FASB ASC 718-40, Employee Stock Ownership Plans Stock Based Compensation The Company has adopted the fair value based method of accounting for stock-based compensation prescribed in FASB ASC 718-20, Compensation – Stock Compensation Income Taxes When income tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while other positions are subject to some degree of uncertainty regarding the merits of the position taken or the amount of the position that would be sustained. The Company recognizes the benefits of a tax position in the consolidated financial statements of the period during which, based on all available evidence, management believes it is more-likely-than-not (more than 50 percent probable) that the tax position would be sustained upon examination. Income tax positions that meet the more-likely-than-not threshold are measured as the largest amount of income tax benefit that is more than 50 percent likely of being realized up |
RESTRICTION ON CASH AND DUE FRO
RESTRICTION ON CASH AND DUE FROM BANKS | 12 Months Ended |
Sep. 30, 2022 | |
RESTRICTION ON CASH AND DUE FROM BANKS | |
RESTRICTION ON CASH AND DUE FROM BANKS | (2) The Company is required to maintain reserve balances on hand and with the Federal Reserve Bank, which are unavailable for investment but are interest-bearing. In March of 2020, the Federal Reserve Bank reduced the reserve requirement to zero. There were no required reserves for the years ended September 30, 2022 and 2021. The average amount of required reserve balances was approximately $10.6 million for the year ended September 30, 2020. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Sep. 30, 2022 | |
INVESTMENT SECURITIES | |
INVESTMENT SECURITIES | (3) Investment securities have been classified according to management’s intent. Securities Available for Sale and Held to Maturity The amortized cost of securities available for sale and held to maturity and their approximate fair values are as follows: Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gain Losses Value September 30, 2022: Securities available for sale: U.S. Treasury notes $ 30,809 $ — $ 3,514 $ 27,295 Agency mortgage-backed 30,786 3 3,289 27,500 Agency CMO 15,562 — 741 14,821 Privately-issued CMO 495 4 29 470 Privately-issued ABS 561 16 8 569 SBA certificates 12,255 1 244 12,012 Municipal bonds 260,326 167 26,643 233,850 Total securities available for sale $ 350,794 $ 191 $ 34,468 $ 316,517 Securities held to maturity: Agency mortgage-backed $ 45 $ — $ — $ 45 Municipal bonds 1,513 35 — 1,548 Total securities held to maturity $ 1,558 $ 35 $ — $ 1,593 (3 - continued) Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gain Losses Value September 30, 2021: Securities available for sale: U.S. Treasury bills $ 250 $ — $ — $ 250 Agency mortgage-backed 8,143 293 52 8,384 Agency CMO 13,315 235 20 13,530 Privately-issued CMO 729 81 7 803 Privately-issued ABS 721 51 — 772 SBA certificates 2,157 2 21 2,138 Municipal bonds 170,102 11,055 353 180,804 Total securities available for sale $ 195,417 $ 11,717 $ 453 $ 206,681 Securities held to maturity: Agency mortgage-backed $ 64 $ 5 $ — $ 69 Municipal bonds 1,773 212 — 1,985 Total securities held to maturity $ 1,837 $ 217 $ — $ 2,054 The amortized cost and fair value of available for sale and held to maturity debt securities as of September 30, 2022 by contractual maturity are shown below. Expected maturities of mortgage and other asset-backed securities may differ from contractual maturities because the mortgages and other assets underlying the obligations may be prepaid without penalty. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Due within one year $ 9,696 $ 9,991 $ 249 $ 254 Due after one year through five years 25,348 25,086 790 808 Due after five years through ten years 67,149 62,891 474 486 Due after ten years 188,942 163,177 — — CMO 16,057 15,291 — — ABS 561 569 — — SBA certificates 12,255 12,012 — — Mortgage-backed securities 30,786 27,500 45 45 $ 350,794 $ 316,517 $ 1,558 $ 1,593 (3 - continued) Information pertaining to securities with gross unrealized losses at September 30, 2022 and 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 (Dollars in thousands) Positions Value Losses September 30, 2022: Securities available for sale: Continuous loss position less than twelve months: U.S. Treasury notes 7 $ 27,295 $ 3,514 Agency mortgage-backed 14 24,987 2,749 Agency CMO 12 8,896 551 Privately-issued CMO 2 424 20 SBA certificates 1 10,775 225 Municipal bonds 259 193,002 24,922 Total less than twelve months 295 265,379 31,981 Continuous loss position more than twelve months: Agency mortgage-backed 1 2,169 540 Agency CMO 2 1,199 190 Privately-issued CMO 1 19 9 Privately-issued ABS 1 283 8 SBA certificates 2 1,202 19 Municipal bonds 7 6,263 1,721 Total more than twelve months 14 11,135 2,487 Total securities available for sale 309 $ 276,514 $ 34,468 September 30, 2021: Securities available for sale: Continuous loss position less than twelve months: Agency mortgage-backed 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 (3 - continued) At September 30, 2022 and 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 concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The total available for sale debt securities in loss positions at September 30, 2022, which consisted of U.S. Treasury notes, agency mortgage-backed securities, agency CMOs, privately-issued CMOs, privately-issued ABSs, SBA certificates, and municipal bonds, had depreciated approximately 11.08% from the Company’s amortized cost basis and are fixed and variable rate securities with a weighted-average yield of 3.13% and a weighted-average coupon rate of 3.41% at September 30, 2022. All of the municipal securities are issued by municipal governments, and are generally secured by first mortgage loans and municipal project revenues. The Company evaluates the existence of a potential credit loss component related to the decline in fair value of the privately-issued CMO and ABS portfolios each quarter using an independent third party analysis. At September 30, 2022, the Company held seven privately-issued CMO and ABS securities acquired in a 2009 bank acquisition with an aggregate amortized cost of $395,000 and fair value of $382,000 that have been downgraded to a substandard regulatory classification due to a downgrade of the security’s credit quality rating by various rating agencies. At September 30, 2022, three privately-issued CMOs and one privately-issued ABS were in a loss position and had depreciated approximately 4.85% from their carrying value. These securities were collateralized by residential mortgage loans, had a total fair value of $726,000 and a total unrealized loss of $37,000 at September 30, 2022. Based on the independent third party analysis of the expected cash flows, management has determined that the declines in fair value for these securities are temporary and, as a result, no other-than-temporary impairment is required to be recognized. While the Company does not anticipate additional credit-related impairment losses at September 30, 2022, additional deterioration in market and economic conditions may have an adverse impact on the credit quality in the future and therefore, require additional credit-related impairment charges. The unrealized losses on U.S. treasury notes, U.S. government agency mortgage-backed securities and CMOs, SBA certificates and municipal bonds relate principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. As management has the ability to hold debt securities to maturity, or for the foreseeable future if classified as available for sale, no declines are deemed to be other-than-temporary. The following is a summary of the reported gross gains and losses on sales of available for sale securities and time deposits for the years ended September 30, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Gross realized gains on sales $ 488 $ — $ 17 Gross realized losses on sales (12) — (10) Net realized gain on sales of available for sale securities and time deposits $ 476 $ — $ 7 (3 - continued) Certain available for sale debt securities were pledged to secure FHLB borrowings at September 30, 2022 and 2021, and may be pledged to secure federal funds borrowings (see Notes 9 and 10). At September 30, 2022 and 2021, there were no holdings of securities of any one issuer, other than the U.S government and its agencies, with an aggregate book value greater than 10% of the Company’s consolidated stockholders’ equity. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Sep. 30, 2022 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | (4) Loans at September 30, 2022 and 2021 consisted of the following: (In thousands) 2022 2021 Real estate mortgage: 1-4 family residential $ 368,211 $ 241,425 Commercial 169,861 149,600 Single tenant net lease 636,578 403,692 SBA 59,379 62,805 Multifamily residential 32,411 40,324 Residential construction 18,261 8,330 Commercial construction 5,938 2,717 Land and land development 11,880 10,217 Commercial business 90,010 59,883 SBA commercial business (1) 20,282 80,400 Consumer 38,052 30,563 Total loans 1,450,863 1,089,956 Deferred loan origination fees and costs, net (2) 1,052 281 Allowance for loan losses (15,360) (14,301) Loans, net $ 1,436,555 $ 1,075,936 (1) Includes $650,000 and $56.7 million of PPP loans at September 30, 2022 and 2021, respectively. (2) Includes $11,000 and $757,000 of net deferred loan fees related to PPP loans at September 30, 2022 and 2021, respectively. At September 30, 2022 and 2021, the net unamortized premium on loans acquired from other financial institutions was $261,000 and $216,000, respectively. The Company has entered into loan transactions with certain directors, officers and their affiliates (related parties). In the opinion of management, such indebtedness was incurred in the ordinary course of business on substantially the same terms as those prevailing at the time for comparable transactions with other persons and does not involve more than normal risk of collectability or present other unfavorable features. (4 – continued) The following is a summary of activity for related party loans for the years ended September 30, 2022 and 2021: (In thousands) 2022 2021 Beginning balance $ 5,975 $ 7,716 New loans and advances 5,022 4,832 Repayments (2,531) (2,601) Loans sold (191) (2,992) Reclassifications due to officer and director changes (619) (980) Ending balance $ 7,656 $ 5,975 Off-balance-sheet commitments (including commitments to make loans, unused lines of credit and letters of credit) to related parties at September 30, 2022 and 2021 were $2.8 million and $3.0 million, respectively. The following tables provide the components of the recorded investment in loans as of September 30, 2022: Principal Accrued Net Deferred Recorded Loan Interest Loan Origination Investment Recorded Investment in Loans: Balance Receivable Fees and Costs in Loans (In thousands) Residential real estate $ 368,211 $ 1,701 $ 136 $ 370,048 Commercial real estate 169,861 533 (304) 170,090 Single tenant net lease 636,578 1,979 47 638,604 SBA commercial real estate 59,379 486 1,108 60,973 Multifamily 32,411 62 (40) 32,433 Residential construction 18,261 27 (89) 18,199 Commercial construction 5,938 11 (25) 5,924 Land and land development 11,880 18 26 11,872 Commercial business 90,010 278 48 90,336 SBA commercial business 20,282 163 218 20,663 Consumer 38,052 121 21 38,152 $ 1,450,863 $ 5,379 $ 1,052 $ 1,457,294 (4 – continued) 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 $ 2,248 $ 367,800 $ 370,048 Commercial real estate 907 169,183 170,090 Single tenant net lease — 638,604 638,604 SBA commercial real estate 7,725 53,248 60,973 Multifamily 354 32,079 32,433 Residential construction — 18,199 18,199 Commercial construction — 5,924 5,924 Land and land development — 11,872 11,872 Commercial business 1,007 89,329 90,336 SBA commercial business 1,091 16,572 20,663 Consumer 238 37,914 38,152 $ 13,570 $ 1,443,724 $ 1,457,294 The following tables provide 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) 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 (4 – continued) Individually Collectively Recorded Evaluated for Evaluated for Investment in Recorded Investment in Loans as Evaluated for Impairment: Impairment Impairment Loans (In thousands) Residential real estate $ 3,067 $ 239,203 $ 242,270 Commercial real estate 1,021 148,934 149,955 Single tenant net lease — 404,938 404,938 SBA commercial real estate 9,153 55,233 64,386 Multifamily 482 39,871 40,353 Residential construction — 8,295 8,295 Commercial construction — 2,695 2,695 Land and land development — 10,229 10,229 Commercial business 1,476 58,627 60,103 SBA commercial business 1,296 79,475 80,771 Consumer 248 30,392 30,640 $ 16,743 $ 1,077,892 $ 1,094,635 (4 – continued) The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of September 30, 2022 and 2021: Individually Collectively Evaluated for Evaluated for Ending Impairment Impairment Balance (In thousands) 2022: Residential real estate $ — $ 2,716 $ 2,716 Commercial real estate — 1,590 1,590 Single tenant net lease — 3,838 3,838 SBA commercial real estate 290 2,288 2,578 Multifamily — 251 251 Residential construction — 305 305 Commercial construction — 107 107 Land and land development — 212 212 Commercial business — 1,193 1,193 SBA commercial business 674 1,448 2,122 Consumer — 448 448 $ 964 $ 14,396 $ 15,360 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 (4 – continued) The following table presents the activity in the allowance for loan losses by portfolio segment for the years ended September 30, 2022 and 2021: Beginning Provisions Ending Balance (Credits) Charge-Offs Recoveries Balance (In thousands) 2022: Residential real estate $ 1,438 $ 1,287 $ (23) $ 14 $ 2,716 Commercial real estate 2,806 (1,216) — — 1,590 Single tenant net lease 2,422 1,416 — — 3,838 SBA commercial real estate 3,475 (802) (110) 15 2,578 Multifamily 518 (267) — — 251 Residential construction 191 114 — — 305 Commercial construction 63 44 — — 107 Land and land development 235 (23) — — 212 Commercial business 1,284 (119) (91) 119 1,193 SBA commercial business 1,346 1,413 (698) 61 2,122 Consumer 523 61 (175) 39 448 $ 14,301 $ 1,908 $ (1,097) $ 248 $ 15,360 2021: Residential real estate $ 1,255 $ 170 $ (11) $ 24 $ 1,438 Commercial real estate 3,058 (252) — — 2,806 Single tenant net lease 3,017 (595) — — 2,422 SBA commercial real estate 4,154 234 (936) 23 3,475 Multifamily 772 (254) — — 518 Residential construction 243 (52) — — 191 Commercial construction 181 (118) — — 63 Land and land development 243 (8) — — 235 Commercial business 1,449 (170) — 5 1,284 SBA commercial business 1,539 (211) (21) 39 1,346 Consumer 1,115 (511) (156) 75 523 $ 17,026 $ (1,767) $ (1,124) $ 166 $ 14,301 (4 – continued) The following table presents the activity in the allowance for loan losses by portfolio segment for the year ended September 30, 2020: Beginning Provisions Balance (Credits) Charge-Offs Recoveries Ending Balance (In thousands) 2020: Residential real estate $ 317 $ 945 $ (36) $ 29 $ 1,255 Commercial real estate 2,540 614 (102) 6 3,058 Single tenant net lease 1,675 1,342 — — 3,017 SBA commercial real estate 2,293 2,175 (360) 46 4,154 Multifamily 478 294 — — 772 Residential construction 248 (5) — — 243 Commercial construction 67 114 — — 181 Land and land development 209 28 — 6 243 Commercial business 889 567 (38) 31 1,449 SBA commercial business 750 1,109 (396) 76 1,539 Consumer 574 779 (238) — 1,115 $ 10,040 $ 7,962 $ (1,170) $ 194 $ 17,026 (4 – continued) The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2022. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended September 30, 2022. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 2,248 $ 2,524 $ — $ 2,978 $ 45 Commercial real estate 907 982 — 1,038 21 Single tenant net lease — — — — — SBA commercial real estate 5,337 5,952 — 7,235 — Multifamily 354 398 — 415 6 Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business 1,007 1,189 — 1,318 19 SBA commercial business 221 532 — 412 — Consumer 93 81 — 91 1 $ 10,167 $ 11,658 $ — $ 13,487 $ 92 Loans with an allowance recorded: Residential real estate $ — $ — $ — $ 206 $ — Commercial real estate — — — — — Single tenant net lease — — — — — SBA commercial real estate 2,388 2,919 290 2,213 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business — — — — — SBA commercial business 870 1,349 674 802 — Consumer 145 145 — 146 — $ 3,403 $ 4,413 $ 964 $ 3,367 $ — Total: Residential real estate $ 2,248 $ 2,524 $ — $ 3,184 $ 45 Commercial real estate 907 982 — 1,038 21 Single tenant net lease — — — — — SBA commercial real estate 7,725 8,871 290 9,448 — Multifamily 354 398 — 415 6 Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business 1,007 1,189 — 1,318 19 SBA commercial business 1,091 1,881 674 1,214 — Consumer 238 226 — 237 1 $ 13,570 $ 16,071 $ 964 $ 16,854 $ 92 (4 – continued) The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2021. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended September 30, 2021. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 3,002 $ 3,551 $ — $ 4,383 $ 68 Commercial real estate 1,021 1,092 — 1,148 29 Single tenant net lease — — — — — SBA commercial real estate 8,184 8,873 — 4,738 — Multifamily 482 539 — 638 — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — 1 — Commercial business 1,476 1,559 — 1,664 3 SBA commercial business 1,278 1,534 — 820 — Consumer 103 97 — 90 2 $ 15,546 $ 17,245 $ — $ 13,482 $ 102 Loans with an allowance recorded: Residential real estate $ 65 $ 65 $ — $ 108 $ — Commercial real estate — — — — — Single tenant net lease — — — — — SBA commercial real estate 969 1,394 114 3,389 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business — — — 1 — SBA commercial business 18 21 18 248 — Consumer 145 144 1 169 — $ 1,197 $ 1,624 $ 133 $ 3,915 $ — Total: Residential real estate $ 3,067 $ 3,616 $ — $ 4,491 $ 68 Commercial real estate 1,021 1,092 — 1,148 29 Single tenant net lease — — — — — SBA commercial real estate 9,153 10,267 114 8,127 — Multifamily 482 539 — 638 — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — 1 — Commercial business 1,476 1,559 — 1,665 3 SBA commercial business 1,296 1,555 18 1,068 — Consumer 248 241 1 259 2 $ 16,743 $ 18,869 $ 133 $ 17,397 $ 102 (4 – continued) The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2020. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended September 30, 2020. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 5,185 $ 5,697 $ — $ 5,411 $ 127 Commercial real estate 1,134 1,185 — 3,914 167 Single tenant net lease — — — — — SBA commercial real estate 1,245 1,178 — 586 — Multifamily 698 700 — 421 — Residential construction — — — — — Commercial construction — — — — — Land and land development 2 1 — 1 — Commercial business 1,670 1,675 — 745 1 SBA commercial business 322 416 — 250 — Consumer 61 63 — 72 3 $ 10,317 $ 10,915 $ — $ 11,400 $ 298 Loans with an allowance recorded: Residential real estate $ 174 $ 175 $ 30 $ 59 $ — Commercial real estate — — — 20 — Single tenant net lease — — — — — SBA commercial real estate 5,682 6,086 1,366 5,048 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business — — — 328 — SBA commercial business 373 399 47 143 — Consumer 138 138 — 154 — $ 6,367 $ 6,798 $ 1,443 $ 5,752 $ — Total: Residential real estate $ 5,359 $ 5,872 $ 30 $ 5,470 $ 127 Commercial real estate 1,134 1,185 — 3,934 167 Single tenant net lease — — — — — SBA commercial real estate 6,927 7,264 1,366 5,634 — Multifamily 698 700 — 421 — Residential construction — — — — — Commercial construction — — — — — Land and land development 2 1 — 1 — Commercial business 1,670 1,675 — 1,073 1 SBA commercial business 695 815 47 393 — Consumer 199 201 — 226 3 $ 16,684 $ 17,713 $ 1,443 $ 17,152 $ 298 (4 – continued) Nonperforming loans consist of nonaccrual loans and loans over 90 days past due and still accruing interest. The following table presents the recorded investment in nonperforming loans at September 30, 2022 and 2021: At September 30, 2022 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 $ 1,213 $ — $ 1,213 $ 1,894 $ — $ 1,894 Commercial real estate 516 — 516 599 — 599 Single tenant net lease — — — — — — SBA commercial real estate 7,725 — 7,725 9,153 472 9,625 Multifamily — — — 482 — 482 Residential construction — — — — — — Commercial construction — — — — — — Land and land development — — — — — — Commercial business 73 — 73 1,370 — 1,370 SBA commercial business 1,091 — 1,091 1,296 — 1,296 Consumer 238 — 238 206 — 206 Total $ 10,856 $ — $ 10,856 $ 15,000 $ 472 $ 15,472 The following table presents the aging of the recorded investment in past due loans at September 30, 2022: 30-59 Days 60-89 Days 90+ Days Total Total Past Due Past Due Past Due Past Due Current Loans (In thousands) Residential real estate $ 1,169 $ 53 $ 204 $ 1,426 $ 368,622 $ 370,048 Commercial real estate — — 516 516 169,574 170,090 Single tenant net lease — — — — 638,604 638,604 SBA commercial real estate — — 3,370 3,370 57,603 60,973 Multifamily — — — — 32,433 32,433 Residential construction — — — — 18,199 18,199 Commercial construction — — — — 5,924 5,924 Land and land development — — — — 11,872 11,872 Commercial business — — 73 73 90,263 90,336 SBA commercial business 231 — 237 468 20,195 20,663 Consumer 95 — 58 153 37,999 38,152 Total $ 1,495 $ 53 $ 4,458 $ 6,006 $ 1,451,288 $ 1,457,294 (4 – continued) 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 trends, among other factors. The Company classifies loans based on credit risk at least quarterly. The Company uses the following regulatory definitions for risk ratings: Special Mention: Substandard: Doubtful: Loss: (4 – continued) Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table presents the recorded investment in loans by risk category as of September 30, 2022: Special September 30, 2022: Pass Mention Substandard Doubtful Loss Total (In thousands) Residential real estate $ 368,377 $ — $ 1,501 $ 170 $ — $ 370,048 Commercial real estate 169,363 — 727 — — 170,090 Single tenant net lease 638,604 — — — — 638,604 SBA commercial real estate 51,053 1,143 7,112 1,665 — 60,973 Multifamily 32,433 — — — — 32,433 Residential construction 18,199 — — — — 18,199 Commercial construction 5,924 — — — — 5,924 Land and land development 11,872 — — — — 11,872 Commercial business 90,001 250 85 — — 90,336 SBA commercial business 17,583 284 2,755 41 — 20,663 Consumer 38,059 — 93 — — 38,152 Total $ 1,441,468 $ 1,677 $ 12,273 $ 1,876 $ — $ 1,457,294 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 (4 – continued) Troubled Debt Restructurings The following table summarizes TDRs by accrual status at September 30, 2022 and 2021. There was no specific reserve included in the allowance for loan losses related to TDRs at September 30, 2021. There was $161,000 of specific reserve included in the allowance for loan losses related to TDRs at September 30, 2022. Accruing Nonaccrual Total (In thousands) September 30, 2022: Residential real estate $ 1,035 $ — $ 1,035 Commercial real estate 391 430 821 SBA commercial real estate - 1,627 1,627 Multifamily 354 — 354 Commercial business 934 — 934 SBA commercial business - 273 273 Total $ 2,714 $ 2,330 $ 5,044 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 (4 – continued) The following table summarizes information in regard to TDRs that were restructured during the years ended September 30, 2022, 2021 and 2020. Pre- Post- Modification Modification Number of Principal Principal Loans Balance Balance (Dollars in thousands) September 30, 2022: SBA commercial business 1 $ 397 $ 397 Total 1 $ 397 $ 397 September 30, 2021: Commercial business 1 $ 126 $ 126 Total 1 $ 126 $ 126 September 30, 2020: Residential real estate 1 $ 1,099 $ 1,100 SBA commercial real estate 1 3,832 3,832 Multifamily 2 700 700 Commercial business 9 1,737 1,737 Total 13 $ 7,368 $ 7,369 At both September 30, 2022 and 2021, the Company had committed to lend $1,000 to customers with outstanding loans classified as TDRs. For the TDRs listed above, the terms of modification included temporary interest-only payment periods, reduction of the stated interest rate, extension of the maturity date, deferral of the contractual principal and interest payments, and the renewal of matured loans where the debtor was unable to access funds elsewhere at a market interest rate for debt with similar risk characteristics. There were principal charge-offs totaling $457,000 recorded as a result of TDRs during the year ended September 30, 2021. There were no principal charge-offs recorded as a result of TDRs during the years ended September 30, 2022 and 2020. Provisions for loan losses related to TDRs totaled $161,000 and $538,000 for the years ended September 30, 2022 and 2020, respectively. There were no provisions for loan losses related to TDRs for the year ended September 30, 2021. 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 years ended September 30, 2022, 2021 and 2020, the Company did not have any TDRs that were modified within the previous twelve months for which there was a payment default (defined as more than 90 days past due or in the process of foreclosure). (4 – continued) On March 22, 2020, the federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”. This guidance encouraged 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 indicated that, in consultation with the FASB, the federal banking agencies concluded that short-term modifications (e.g., six months) made on a good faith basis to borrowers who were current as of the implementation date of a relief program are not TDRs. The Coronavirus Aid, Relief and Economic Security (“CARES”) Act was passed by Congress on March 27, 2020. The CARES Act also addressed COVID-19 related modifications and specified that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. The Consolidated Appropriations Act of 2021, signed into law on December 27, 2020, further extended the relief from TDR accounting for qualified modifications to the earlier of January 1, 2022 or 60 days after the national emergency concerning COVID-19 terminates. At September 30, 2022, the Company had no loans remaining under the Company’s payment extension program. SBA Loan Servicing Rights The Company originates loans to commercial customers under the SBA 7(a) and other programs, and sells the guaranteed portion of the SBA loans with servicing retained. Loan servicing rights on originated SBA loans that have been sold are initially recorded at fair value. Capitalized SBA servicing rights are then amortized in proportion to and over the period of estimated net servicing income. Impairment of SBA servicing rights is assessed using the present value of estimated future cash flows. The aggregate fair value of SBA loan servicing rights at September 30, 2022 and 2021 approximated its carrying value. A valuation model employed by an independent third party calculates the present value of future cash flows and is used to estimate fair value at the date of sale and on a quarterly basis for impairment analysis purposes. Management periodically compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Key assumptions used to estimate the fair value of the SBA loan servicing rights at September 30, 2022 and 2021 were as follows: Range of Assumption (Weighted Average) Assumption 2022 2021 Discount rate 6.90% to 25.00% (12.71%) 4.57% to 22.34% (9.97%) Prepayment rate 7.08% to 29.26% (15.27%) 8.30% to 24.51% (15.98%) 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 $238.9 million, $244.8 million and $209.1 million at September 30, 2022, 2021 and 2020, respectively. An analysis of loan servicing fees on SBA loans for the years ended September 30, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 Late fees and ancillary fees earned $ 93 $ 88 $ 54 Net servicing income 2,425 2,171 1,806 SBA net servicing fees $ 2,518 $ 2,259 $ 1,860 (4 – continued) Contractually specified late fees and ancillary fees earned on SBA loans are included in interest income on loans in the consolidated statements of income. Net servicing income (contractually specified servicing fees offset by direct servicing expenses) related to SBA loans are included in other noninterest income in the consolidated statements of income. An analysis of SBA loan servicing rights for the years ended September 30, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 Balance as of October 1 $ 4,447 $ 3,748 $ 3,030 Servicing rights capitalized 846 1,980 1,450 Amortization (1,287) (1,215) (848) Direct write-offs (43) (92) — Change in valuation allowance (173) 26 116 Balance as of September 30 $ 3,790 $ 4,447 $ 3,748 An analysis of the valuation allowance related to SBA loan servicing rights for the years ended September 30, 2022, 2021 and 2020 is as follows: |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2022 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | (5) Premises and equipment consisted of the following at September 30, 2022 and 2021: (In thousands) 2022 2021 Land and land improvements $ 5,328 $ 4,561 Office buildings 23,942 23,826 Leasehold improvements 66 66 Furniture, fixtures and equipment 9,187 9,206 Construction in progress 749 400 39,272 38,059 Less: accumulated depreciation (12,172) (10,390) Totals $ 27,100 $ 27,669 Depreciation expense recognized for premises and equipment for the years ended September 30, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 Depreciation expense $ 2,125 $ 2,023 $ 1,576 In September 2016, the Bank sold property in conjunction with the sale of a real estate development. The Bank’s property sold in the transaction consisted of a retail branch operated by the Bank and other retail space leased to a third-party tenant. In accordance with the purchase and sale agreement, the Bank executed a lease agreement with the buyer to lease back the portion of the property consisting of the retail branch. The lease has an initial term of 10 years and may be extended for up to six consecutive five-year periods. The Bank is accounting for the leaseback as an operating lease. The total gain realized on the sale of the property was $471,000, with $307,000 attributable to the retail branch property operated by the Bank and $164,000 attributable to the other retail space. The gain on the other retail space was recognized in noninterest income in the consolidated statement of income in 2016. The gain attributable to the retail branch property was deferred and had a remaining balance of $218,000 at September 30, 2019. On October 1, 2019, the Company adopted FASB ASC 842 and all subsequent updates that modified FASB ASC 842, which resulted in the recognition of the remaining deferred gain through a cumulative-effect adjustment to retained earnings. See Note 16 for additional information regarding the Company’s leases. |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Sep. 30, 2022 | |
OTHER REAL ESTATE OWNED | |
OTHER REAL ESTATE OWNED | (6) Other real estate owned (“OREO”) asset activity was as follows for the years ended September 30, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Balance as of October 1 $ 1,728 $ 1,728 $ 1,893 Transfers from loans to OREO — 426 — Transfers from OREO to premises and equipment (721) — — Sales (804) (426) (165) Balance as of September 30 $ 203 $ 1,728 $ 1,728 At September 30, 2022 and 2021, OREO did not include any residential real estate properties where physical possession has been obtained. The recorded investment in consumer mortgage loans secured by residential real estate properties where formal foreclosure proceedings are in process at September 30, 2022 and 2021 was $204,000 and $124,000, respectively. Net (gain) loss on OREO for the years ended September 30, 2022, 2021 and 2020 was as follows: (In thousands) 2022 2021 2020 Net (gain)/loss on sales $ 115 $ (74) $ (16) Operating expenses, net of rental income — 10 15 $ 115 $ (64) $ (1) |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Sep. 30, 2022 | |
GOODWILL AND OTHER INTANGIBLES | |
GOODWILL AND OTHER INTANGIBLES | (7) Goodwill and the core deposit intangibles acquired in the acquisitions of Community First Bank (“Community First”) on September 30, 2009, the First Federal Savings Bank of Elizabethtown, Inc. (“First Federal”) branches on July 6, 2012, and Dearmin Bancorp, Inc. (“Dearmin”) and its majority owned subsidiary, The First National Bank of Odon (“FNBO”), on February 9, 2018, are evaluated for impairment at least annually or more frequently upon the occurrence of an event or when circumstances indicate that the carrying amount is greater than its fair value. No impairment of goodwill or the core deposit intangibles was recognized during 2022, 2021, or 2020. The changes in the carrying amount of goodwill for the years ended September 30, 2022, 2021 and 2020 are summarized as follows: (In thousands) 2022 2021 2020 Beginning balance $ 9,848 $ 9,848 $ 9,848 Acquisition of Dearmin/FNBO — — — Ending balance $ 9,848 $ 9,848 $ 9,848 The following is a summary of other intangible assets subject to amortization: (In thousands) 2022 2021 Core deposit intangible acquired in Community First acquisition $ 2,741 $ 2,741 Core deposit intangible acquired in First Federal branch acquisition 566 566 Core deposit intangible acquired in Dearmin/FNBO acquisition 1,487 1,487 Less accumulated amortization (4,019) (3,806) Ending balance $ 775 $ 988 (7 – continued) Amortization expense on intangibles for the years ended September 30, 2022, 2021 and 2020 is summarized as follows: (In thousands) 2022 2021 2020 Amortization expense $ 214 $ 214 $ 214 Estimated amortization expense for the core deposit intangibles for each of the ensuing five years and in the aggregate is as follows: Years ending September 30: (In thousands) 2023 $ 214 2024 163 2025 163 2026 163 2027 72 Total $ 775 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Sep. 30, 2022 | |
Deposits | |
Deposits | (8) Deposits at September 30, 2022 and 2021 consisted of the following: (In thousands) 2022 2021 Noninterest-bearing demand deposits $ 340,172 $ 291,039 NOW accounts 343,296 315,169 Money market accounts 238,219 222,972 Savings accounts 171,779 162,033 Retail time deposits 129,864 136,309 Brokered and reciprocal certificates of deposit 292,504 100,058 Total $ 1,515,834 $ 1,227,580 The aggregate amount of time deposit accounts with balances that met or exceeded the Federal Deposit Insurance Corporation (“FDIC”) insurance limit of $250,000 was $32.6 million and $29.8 million at September 30, 2022 and 2021, respectively. At September 30, 2022, scheduled maturities of time deposits were as follows: Years ending September 30: (In thousands) 2023 $ 368,081 2024 28,960 2025 8,213 2026 6,868 2027 10,246 Total $ 422,368 The Bank held deposits for related parties of $15.3 million and $14.7 million at September 30, 2022 and 2021, respectively. |
FEDERAL FUNDS PURCHASED
FEDERAL FUNDS PURCHASED | 12 Months Ended |
Sep. 30, 2022 | |
FEDERAL FUNDS PURCHASED | |
FEDERAL FUNDS PURCHASED | (9) The Bank has entered into a federal funds purchased line of credit facility with another financial institution that established a line of credit not to exceed the lesser of $20 million or 25% of the Bank’s equity capital, excluding reserves. Availability under the line of credit is subject to continued borrower eligibility and expires on June 30, 2023 The Bank has also entered into a separate federal funds purchased line of credit facility with another financial institution that established a discretionary line of credit not to exceed $22 million. The line of credit is intended to support short-term liquidity needs. At September 30, 2022 and 2021, the Bank had no outstanding federal funds purchased under the facility. The Bank has also entered into a separate federal funds purchased line of credit facility with another financial institution that established a discretionary line of credit not to exceed $15 million. The line of credit is intended to support short-term liquidity needs. At September 30, 2022 and 2021, the Bank had no outstanding federal funds purchased under the facility. |
BORROWINGS FROM FEDERAL HOME LO
BORROWINGS FROM FEDERAL HOME LOAN BANK | 12 Months Ended |
Sep. 30, 2022 | |
BORROWINGS FROM FEDERAL HOME LOAN BANK | |
BORROWINGS FROM FEDERAL HOME LOAN BANK | (10) At September 30, 2022 and 2021 borrowings from the FHLB were as follows: 2022 2021 Weighted Weighted Average Average (Dollars in thousands) Rate Amount Rate Amount Advances maturing in: 2022 — % $ — 2.01 $ 10,000 2023 3.00 130,000 — — 2024 — — 2.02 50,000 2025 1.51 10,000 1.51 10,000 2026 1.13 20,000 1.13 20,000 2027 and beyond 1.27 135,000 0.77 160,000 Total advances 295,000 250,000 Line of credit balance 3.45 12,303 0.43 — Total borrowings from FHLB $ 307,303 $ 250,000 The Bank entered into an Advances, Pledge and Security Agreement with the FHLB, allowing the Bank to initiate advances from the FHLB. The advances are secured under a blanket collateral agreement. At September 30, 2022, the eligible blanket collateral included residential mortgage loans with a carrying value of $183.7 million and commercial real estate loans with a carrying value of $695.9 million. Pledged On January 21, 2022, the Bank entered into an Overdraft Line of Credit Agreement with the FHLB which established a line of credit not to exceed $25.0 million secured under the blanket collateral agreement. This agreement expires on January 21, 2023. At September 30, 2022, there was $12.3 million outstanding under this agreement. (10 – continued) On June 19, 2014, the Bank entered into a Letter of Credit Agreement with the FHLB which established a letter of credit not to exceed $3.3 million secured under the blanket collateral agreement. The agreement had an initial expiration date of July 1, 2015 and is automatically extended for one additional year for successive one-year periods, not to extend beyond July 3, 2034. At September 30, 2022, the maximum amount available under the letter of credit was $2.1 million, and there was no outstanding balance under this agreement. On May 31, 2017, the Bank entered into a Letter of Credit Agreement with the FHLB which established a letter of credit not to exceed $2.2 million. The agreement had an initial expiration date of May 31, 2018 and is automatically extended for one additional year for successive one-year periods, not to extend beyond June 1, 2037. At September 30, 2022, the maximum amount available under the letter of credit was $1.9 million, and there was no outstanding balance under this agreement. |
OTHER BORROWINGS
OTHER BORROWINGS | 12 Months Ended |
Sep. 30, 2022 | |
OTHER BORROWINGS | |
OTHER BORROWINGS | (11) On September 20, 2018, the Company entered into a subordinated note purchase agreement in the principal amount of $20 million. The subordinated note initially bears a fixed interest rate of 6.02% per year through September 30, 2023, and thereafter a floating rate, reset quarterly, equal to the three-month Secured Overnight Financing Rate (“SOFR”) plus 310 basis points. All interest is payable quarterly and the subordinated note is scheduled to mature on September 30, 2028. The subordinated note is an unsecured subordinated obligation of the Company and may be repaid in whole or in part, without penalty, on or after September 30, 2023. The subordinated note is intended to qualify as Tier 2 capital for the Company under regulatory guidelines. The subordinated note is presented net of unamortized debt issuance costs of $68,000 and $135,000 at September 30, 2022 and 2021, respectively, in the accompanying consolidated balance sheet. The debt issuance costs are being amortized over five years, which represents the period from issuance to the first redemption date of September 30, 2023. On March 18, 2022, the Company entered into subordinated note purchase agreements in the aggregate principal amount of $31 million. The subordinated notes initially bear a fixed interest rate of 4.50% per year through March 30, 2027, and thereafter a floating rate, reset quarterly, equal to the three-month SOFR rate plus 276 basis points. All interest is payable semi-annually and the subordinated notes are scheduled to mature on March 30, 2032. The subordinated notes are unsecured subordinated obligations of the Company and may be repaid in whole or in part, without penalty, on or after March 30, 2027. The subordinated notes are intended to qualify as Tier 2 capital for the Company under regulatory guidelines. The subordinated notes are presented net of unamortized debt issuance costs of $715,000 at September 30, 2022, in the accompanying consolidated balance sheet. The debt issuance costs are being amortized over five years, which represents the period from issuance to the first redemption date of March 30, 2027. In April of 2020, the Company began utilizing the Federal Reserve PPP Liquidity Facility (“PPPLF”). The proceeds from the PPPLF were used to fund certain PPP loans, which were pledged as collateral to secure the borrowings, and carried a fixed interest rate of 0.35%. There were no outstanding borrowings under the PPPLF at September 30, 2022 and 2021. |
DEFERRED COMPENSATION PLANS
DEFERRED COMPENSATION PLANS | 12 Months Ended |
Sep. 30, 2022 | |
DEFERRED COMPENSATION PLANS | |
DEFERRED COMPENSATION PLANS | (12) The Company has deferred compensation agreements with former and current officers. The agreements provide for the payment of specific benefits following retirement. The balance of the accrued benefit for these agreements was $500,000 and $336,000 at September 30, 2022 and 2021, respectively. Deferred compensation expense for the years ended September 30, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 Deferred compensation expense (income) $ 164 $ 129 $ (4) (12 – continued) The Company has a directors’ deferred compensation plan whereby a director, at his or her election on an annual basis, may defer all or a portion of the director fees into an account with the Company. The Company accrues interest on the deferred obligation at an annual rate equal to the prime rate for the immediately preceding calendar quarter plus 2%, but in no event at a rate in excess of 8%. The deferral period extends until separation from service by the director. The benefits under the plan are payable in a lump sum or in monthly installments over a period of up to ten years following the separation from service; however, the agreements provide for payment of benefits in the event of disability, early retirement, termination of service or death. The balance of the accrued benefit for the director plan was $1.5 million at September 30, 2022 and 2021. Deferred directors’ fees expense for the years ended September 30, 2022, 2021 and 2020 were as follows: (In thousands) 2022 2021 2020 Deferred directors’ fee expense $ 202 $ 166 $ 187 |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Sep. 30, 2022 | |
BENEFIT PLANS | |
BENEFIT PLANS | (13) Defined Contribution Plan: The Company has a qualified contributory defined contribution plan available to all eligible employees. The plan allows participating employees to make tax-deferred contributions under Internal Revenue Code Section 401(k). Company contributions to the plan for the years ended September 30, 2022, 2021 and 2020 were as follows: (In thousands) 2022 2021 2020 Company contributions to the plan $ 1,366 $ 1,633 $ 1,420 Employee Stock Ownership Plan: On October 6, 2008, the Company established a leveraged ESOP covering substantially all employees. The ESOP trust acquired 610,089 shares of Company common stock at a cost of $3.33 per share (both as adjusted for the three There was no compensation expense recognized for the years ended September 30, 2022, 2021 and 2020. The employer loan was fully repaid in December 2015 and all shares of Company stock were allocated to participant accounts as of September 30, 2016. The ESOP trust held 306,202 and 335,958 shares of Company common stock allocated to participant accounts at September 30, 2022 and 2021, respectively. The aggregate fair value of shares allocated to ESOP participants was $7.0 million and $9.4 million at September 30, 2022 and 2021, respectively. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Sep. 30, 2022 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | (14) The Company maintains three equity incentive plans under which stock options and restricted stock have or can be granted, the 2010 Equity Incentive Plan (“2010 Plan”) approved by the Company’s shareholders in February 2010, the 2016 Equity Incentive Plan (“2016 Plan”) approved by the Company’s shareholders in February 2016 and the 2021 Equity Incentive Plan (“2021 Plan”) approved by the Company’s shareholders in February 2021. The aggregate number of shares of the Company’s common stock available for issuance under the 2016 Plan may not exceed 264,000 shares, consisting of 198,000 stock options and 66,000 shares of restricted stock. The aggregate number of shares of the Company’s common stock available for issuance under the 2021 Plan may not exceed 356,058 shares, consisting of 267,043 stock options and 89,015 shares of restricted stock. In November 2021 the Company granted 137,250 stock options and 45,750 restricted shares from the 2021 Plan to directors, officers and key employees, which will vest over a one-year or five-year period. At September 30, 2022, there were no remaining shares of the Company’s common stock available for issuance under the 2010 Plan. At September 30, 2022, 4,560 shares of the Company’s common stock were available for issuance under the 2016 Plan, including 1,500 shares available for restricted stock and 3,060 shares available for stock options. At September 30, 2022, 173,058 shares of the Company’s common stock were available for issuance under the 2021 Plan, including 43,265 shares available for restricted stock and 129,793 shares available for stock options. In November 2022, the Company granted 66,000 stock options and 22,000 restricted shares to directors, officers and key employees which will vest over a one-year or five-year period. The Company generally issues new shares under the 2016 Plan and 2021 Plan 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 based compensation expense related to stock options and restricted stock for the years ended September 30, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 Stock option expense $ 296 $ 92 $ 86 Restricted stock expense 391 184 193 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 one The fair value of options granted during the year ended September 30, 2022 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 (14 – continued) The fair value of options granted during the years ended September 30, 2021 and 2020 was determined using the following assumptions: Expected dividend yield 1.75 % Risk-free interest rate 2.13 % Expected volatility 14.6 % Expected life of options 7.5 years Weighted average fair value at grant date $ 6.13 A summary of stock option activity as of September 30, 2022, and changes during the year then ended is presented below. Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (Years) Value Outstanding at beginning of year 217,074 $ 16.58 Granted 137,250 26.72 Exercised (2,955) 13.36 Forfeited or expired — — Outstanding at end of year 351,369 $ 20.57 6.8 $ 1,566,000 Vested and expected to vest 351,369 $ 20.57 6.8 $ 1,566,000 Exercisable at end of year 168,344 $ 15.28 4.7 $ 1,458,000 The intrinsic value of stock options exercised during the years ended September 30, 2022, 2021 and 2020 was $31,000, $50,000 and $1.4 million, respectively. At September 30, 2022, there was $777,000 of unrecognized compensation expense related to nonvested stock options. The compensation expense is expected to be recognized over a weighted average period of 4.00 years. There was no cash received from the exercise of stock options for the year ended September 30, 2022. Cash received from the exercise of stock options was $27,000 and $148,000 for the years ended September 30, 2021 and 2020, respectively. The tax benefit from the exercise of stock options was $8,000, $10,000 and $134,000 for the years ended September 30, 2022, 2021 and 2020, respectively. Restricted Stock: The vesting period of restricted stock granted under the plans is generally one or 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. (14 – continued) Restricted Stock: - continued A summary of the Company’s nonvested restricted shares activity as of September 30, 2022 and changes during the year 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 September 30, 2022 51,324 $ 26.07 There were 12,225, 13,125 and 12,258 restricted shares vested during the years ended September 30, 2022, 2021 and 2020, respectively. The total fair value of restricted shares that vested during the years ended September 30, 2022, 2021 and 2020 was $327,000, $277,000 and $271,000, respectively. At September 30, 2022, there was $969,000 of unrecognized compensation expense related to nonvested restricted shares. The compensation expense is expected to be recognized over a weighted average period of 3.97 years. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2022 | |
INCOME TAXES | |
INCOME TAXES | (15) The Company and its subsidiaries file consolidated income tax returns. The components of consolidated income tax expense were as follows for the years ended September 30, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Current $ 283 $ 2,166 $ 8,295 Valuation allowance (78) (34) 193 Deferred 2,173 7,865 4,173 Income tax expense $ 2,378 $ 9,997 $ 12,661 The reconciliation of income tax expense with the amount which would have been provided at the federal statutory rate of 21% for the years ended September 30, 2022, 2021 and 2020 follows: (In thousands) 2022 2021 2020 Provision at federal statutory rate $ 3,953 $ 8,308 $ 9,816 State income tax-net of federal tax benefit 297 901 1,815 Tax-exempt interest income (1,314) (1,045) (962) Bank owned life insurance (209) (194) (154) Captive insurance net premiums (375) (303) (295) Increase (decrease) in federal deferred tax valuation allowance (78) (20) 193 Nondeductible officer compensation — 2,238 2,373 Other 104 112 (125) Income tax expense $ 2,378 $ 9,997 $ 12,661 (15 – continued) Significant components of deferred tax assets and liabilities at September 30, 2022 and 2021 are as follows: (In thousands) 2022 2021 Deferred tax assets: Allowance for loan losses $ 3,719 $ 3,460 Operating lease liability 1,100 1,430 Deferred compensation plans 475 426 Equity incentive plans 117 45 Other-than-temporary impairment loss on available for sale securities 17 20 Interest on nonaccrual loans 165 236 Loss on tax credit investments 1,638 1,640 Unrealized loss on securities available for sale 7,198 — Net operating loss carryforwards 400 — Mark to market adjustments 514 817 Other 1,246 278 Gross deferred tax assets 16,589 8,352 Valuation allowance (1,570) (1,648) Net deferred tax assets 15,019 6,704 Deferred tax liabilities: Unrealized gain on securities available for sale — (2,366) Accumulated depreciation (2,099) (2,014) Operating lease right of use asset (1,069) (1,403) Installment sale (349) (360) Acquisition purchase accounting adjustments (1,284) (853) Mortgage servicing rights (15,498) (12,336) FHLB stock dividends (71) (85) Prepaid expenses (776) (829) Deferred loan fees and costs, net (180) (239) Other (101) (96) Deferred tax liabilities (21,427) (20,581) Net deferred tax liability $ (6,408) $ (13,877) Tax laws enacted in 2013 and 2014 decrease the Indiana financial institutions tax rate beginning in 2014 and ending in 2023. Deferred taxes have been adjusted to reflect the newly enacted rates and the period in which temporary differences are expected to reverse. (15 – continued) At September 30, 2022, the Company had a federal net operating loss carryforward of approximately $2.6 million that is not subject to expiration. The Company also has various apportioned state net operating loss carryforwards that may expire based on the relevant statutes for each state. In assessing the ability of the Company to realize the benefit of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, availability of operating loss carrybacks, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which deferred tax assets are deductible, management believes it is more likely than not the Company will generate sufficient taxable income to realize the benefits of these deductible differences at September 30, 2022, except for a valuation allowance of $1.6 At September 30, 2022 and 2021, the Company had no liability for unrecognized income tax benefits and does not anticipate any increase in the liability for unrecognized tax benefits during the next twelve months. The Company believes that its income tax positions would be sustained upon examination and does not anticipate any adjustments that would result in a material change to its financial position or results of operations. The Company files consolidated U.S. federal and Indiana state income tax returns. Returns filed in these jurisdictions for tax years ending on or after September 30, 2018 are subject to examination by the relevant taxing authorities. Each entity included in the consolidated federal and state income tax returns filed by the Company are charged or given credit for the applicable tax as though separate returns were filed. Retained earnings of the Bank at September 30, 2022 and 2021 include approximately $4.6 million for which no deferred federal income tax liability has been recognized. This amount represents an allocation of income to bad debt deductions as of September 30, 1988 for tax purposes only. Reduction of such allocated amounts for purposes other than tax bad debt losses, including redemption of bank stock, excess dividends or loss of “bank” status, would create income for tax purposes only, subject to the then-current corporate income tax rate. The unrecorded deferred income tax liability on these amounts was approximately $957,000 at September 30, 2022 and 2021. |
LEASES
LEASES | 12 Months Ended |
Sep. 30, 2022 | |
LEASES | |
LEASES | (16) A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified premises 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 Company has adopted FASB ASC 842 and all subsequent updates. 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 has adopted all applicable practical expedients permitted under the standard, including the option to expense short-term leases with a term of one year or less. (16 – continued) The Company’s right to use an asset over the life of a lease is recorded as an ROU asset included in other assets on the consolidated balance sheets and was $4.4 million and $5.8 million at September 30, 2022 and 2021,respectively. Certain adjustments to the ROU asset may be required for items such as initial direct costs paid or incentives received. The Company recorded a lease liability in other liabilities on the consolidated balance sheets, which had a balance of $4.6 million and $5.9 million at September 30, 2022 and 2021, respectively. The calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to calculate the present value of minimum lease payments. Regarding the discount rate, FASB ASC 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to October 1, 2019, the rate for the remaining lease term as of October 1, 2019 was used. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the term of the lease. Certain leases include one or more options to renew one Lease expense for the years ended September 30, 2022, 2021 and 2020 was $1.1 million, $2.0 million and $1.9 million, respectively. The components of lease expense for the years ended September 30, 2022, 2021 and 2020 were as follows: (In thousands) 2022 2021 2020 Operating lease cost $ 621 $ 1,204 $ 1,294 Short-term lease cost 501 836 644 $ 1,122 $ 2,040 $ 1,938 Future minimum commitments due under these lease agreements as of September 30, 2022 are as follows, including renewal options that are reasonably certain to be exercised: Years ending September 30: (In thousands) 2023 $ 412 2024 324 2025 228 2026 203 2027 211 Thereafter 4,991 Total lease payments 6,369 Less imputed interest (1,815) Total $ 4,554 The lease term and discount rate at September 30, 2022 and 2021 were as follows: 2022 2021 Weighted-average remaining lease term (years) 23.7 21.5 Weighted-average discount rate 2.89 % 2.53 % (16 – continued) Supplemental cash flow information for the years ended September 30, 2022, 2021 and 2020 related to leases was as follows: (In thousands) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 607 $ 1,253 $ 1,221 ROU assets obtained in exchange for lease obligations: Operating leases 275 2,038 9,083 Lessor The Company leases commercial office space to tenants under noncancelable operating leases with terms of five Years ending September 30: (In thousands) 2023 $ 469 2024 469 2025 354 2026 8 2027 8 2028 and thereafter 5 Total $ 1,313 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | (17) The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount and type of collateral obtained, if deemed necessary by the Company upon extension of credit, varies and is based on management’s credit evaluation of the counterparty. Commitments under outstanding standby letters of credit totaled $8.2 million and $8.3 million at September 30, 2022 and 2021, respectively. Standby letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company’s policy for obtaining collateral, and the nature of such collateral, is essentially the same as that involved in making commitments to extend credit. (17 continued) The Company has not been obligated to perform on any financial guarantees and has incurred no losses on its commitments in 2022 or 2021. The following is a summary of the commitments to extend credit at September 30, 2022 and 2021. Interest rate lock commitments that meet the definition of a derivative are excluded from these totals. (In thousands) 2022 2021 Loan commitments: Fixed rate $ 53,692 $ 49,722 Adjustable rate 71,167 28,137 Guarantees of third-party revolving credit 286 177 Undisbursed portion of home equity lines of credit 105,208 35,995 Undisbursed portion of commercial and personal lines of credit 52,146 47,452 Undisbursed portion of construction loans in process 45,265 31,323 Total commitments to extend credit $ 327,764 $ 192,806 In connection with the sale of residential mortgage loans to third party investors, the Company makes usual and customary representations and warranties as to the propriety of its origination activities. In certain circumstances, the investors require the Company to repurchase loans sold to them under the terms of the warranties. When this happens, the loans are recorded at fair value with a corresponding charge to a valuation reserve. At September 30, 2022 and 2021, the Company had established a reserve for loan repurchases or indemnifications of $435,000 and $338,000, respectively, which is included in other liabilities in the accompanying consolidated balance sheets. Provisions for loan repurchases or indemnifications totaling $672,000, $595,000 and $614,000 were made for the years ended September 30, 2022, 2021 and 2020, respectively, and are included in mortgage banking income in the accompanying consolidated statements of income. At September 30, 2021, the Company had recorded a loss for restitution to be repaid to certain borrowers who originated loans through the Company’s mortgage banking division. A settlement agreement was reached and restitution in the amount of $390,000 was paid during the fiscal year ended September 30, 2022. 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 agreement with the claimant, and the Company has accrued a loss contingency for this pending litigation at September 30, 2022, the amount of which had an immaterial effect on the consolidated financial statements. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Sep. 30, 2022 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | (18) The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (i.e., rate lock commitment). The Company also enters into forward mortgage loan commitments to sell to various investors to protect itself against exposure to various factors and to reduce sensitivity to interest rate movements. Both the interest rate lock commitments and the related forward mortgage loan sales contracts are considered derivatives and are recorded on the balance sheet at fair value in accordance with FASB ASC 815, Derivatives and Hedging (18 – continued) Certain financial instruments, including derivatives, may be eligible for offset in the balance sheet when the “right of setoff” exists or when the instruments are subject to an enforceable master netting agreement, which includes the right of the non-defaulting party or non-affected party to offset recognized amounts, including collateral posted with the counterparty, to determine a net receivable or net payable upon early termination of the agreement. Certain of the Company’s derivative instruments are subject to master netting agreements. However, the Company has not elected to offset such financial instruments in the consolidated balance sheets. The Company may be required to post margin collateral to derivative counterparties based on agreements with the dealers. At September 30, 2022 and 2021, the Company had cash collateral posted with certain derivative counterparties against its derivative obligations of $2.4 million. Cash collateral related to derivative contracts is recorded in interest-bearing deposits with banks or other assets in the consolidated balance sheets. The table below provides information on the Company’s derivative financial instruments as of September 30, 2022 and 2021. September 30, 2022: Notional Asset Liability (In thousands) Amount Derivatives Derivatives Interest rate lock commitments $ 48,952 $ 158 $ 396 Forward mortgage loan sale contracts 60,000 872 31 $ 108,952 $ 1,030 $ 427 September 30, 2021: Notional Asset Liability (In thousands) Amount Derivatives Derivatives Interest rate lock commitments $ 331,178 $ 2,167 $ 600 Forward mortgage loan sale contracts 291,750 1,465 35 $ 622,928 $ 3,632 $ 635 Income (loss) related to derivative financial instruments included in mortgage banking income in the accompanying consolidated statements of income for the years ended September 30, 2022, 2021 and 2020, is as follows: (In thousands) 2022 2021 2020 Interest rate lock commitments $ (1,805) $ (13,370) $ 11,668 Forward mortgage loan sale contracts 20,398 4,140 (22,412) $ 18,593 $ (9,230) $ (10,744) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Sep. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | (19) FASB ASC Topic 820 , Fair Value Measurements, Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted market price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. (19 – continued) 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. The table below presents the balances of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis as of September 30, 2022. Carrying Value (In thousands) Level 1 Level 2 Level 3 Total September 30, 2022: Assets Measured – Recurring Basis Securities available for sale: U.S. Treasury notes $ — $ 27,295 $ — $ 27,295 Agency mortgage-backed — 27,500 — 27,500 Agency CMO — 14,821 — 14,821 Privately-issued CMO — 470 — 470 Privately-issued ABS — 569 — 569 SBA certificates — 12,012 — 12,012 Municipal bonds — 233,850 — 233,850 Total securities available for sale $ — $ 316,517 $ — $ 316,517 Residential mortgage loans held for sale – fair value option elected $ — $ 38,579 $ — $ 38,579 Derivative assets (included in other assets) $ — $ 872 $ 158 $ 1,030 Equity securities (included in other assets) $ 103 $ — $ — $ 103 Residential mortgage servicing rights $ — $ — $ 63,263 $ 63,263 Liabilities Measured – Recurring Basis Derivative liabilities (included in other liabilities) $ — $ 31 $ 396 $ 427 Assets Measured – Nonrecurring Basis Impaired loans: Residential real estate $ — $ — $ — $ — Commercial real estate — — — — SBA commercial real estate — — 2,574 2,574 Multifamily — — — — Commercial business — — 46 46 SBA commercial business — — 290 290 Consumer — — — — Total impaired loans $ — $ — $ 2,910 $ 2,910 SBA loan servicing rights $ — $ — $ 3,790 $ 3,790 (19 – continued) The table below presents the balances of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis as of September 30, 2021. Carrying Value (In thousands) Level 1 Level 2 Level 3 Total September 30, 2021: Assets Measured – Recurring Basis Securities available for sale: U.S. Treasury bills $ — $ 250 $ — $ 250 Agency mortgage-backed — 8,384 — 8,384 Agency CMO — 13,530 — 13,530 Privately-issued CMO — 803 — 803 Privately-issued ABS — 772 — 772 SBA certificates — 2,138 — 2,138 Municipal bonds — 180,804 — 180,804 Total securities available for sale $ — $ 206,681 $ — $ 206,681 Residential mortgage loans held for sale – fair value option elected $ — $ 167,813 $ — $ 167,813 Derivative assets (included in other assets) $ — $ 1,465 $ 2,167 $ 3,632 Equity securities (included in other assets) $ 112 $ — $ — $ 112 Residential mortgage servicing rights $ — $ — $ 49,579 $ 49,579 Liabilities Measured – Recurring Basis Derivative liabilities (included in other liabilities) $ — $ 35 $ 600 $ 635 Assets Measured – Nonrecurring Basis Impaired loans: Residential real estate $ — $ — $ 71 $ 71 Commercial real estate — — — — SBA commercial real estate — — 4,169 4,169 Multifamily — — — — Commercial business — — — — SBA commercial business — — — — Consumer — — 8 8 Total impaired loans $ — $ — $ 4,248 $ 4,248 SBA loan servicing rights $ — $ — $ 1,184 $ 1,184 Fair value is based upon quoted market prices, where available. If quoted market prices are not available, fair value is based on internally-developed models or obtained from third parties that primarily use, as inputs, observable market-based parameters or a matrix pricing model that employs the Bond Market Association’s standard calculations for cash flow and price/yield analysis and observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, or the lower of cost or fair value. These adjustments may include unobservable parameters. Any such valuation adjustments have been applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. (19 – continued) 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 years ended September 30, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Beginning balance $ 1,567 $ 14,937 $ 3,269 Unrealized gains (losses) recognized in earnings, net of settlements (1,805) (13,370) 11,668 Ending balance $ (238) $ 1,567 $ 14,937 (19 – continued) The realized and unrealized gains (losses) recognized in earnings in the table above are included in mortgage banking income on the accompanying consolidated statements of income. Losses recognized in earnings for the year ended September 30, 2022 attributable to Level 3 derivative assets and liabilities held at the balance sheet date were $238,000. Gains The table below presents information about significant unobservable inputs (Level 3) used in the valuation of derivative financial instruments measured at fair value on a recurring basis as of September 30, 2022 and 2021. 2022 Range 2021 Range Significant of Inputs of Inputs Unobservable (Weighted (Weighted Financial Instrument Inputs Average) Average) Interest rate lock commitments Pull-through rate 50% - 100% (78%) 58% - 100% (83%) Direct costs to close 0.00% - 4.00% (0.70%) 0.37% - 1.74% (0.86%) Residential Mortgage Servicing Rights . The table below presents a reconciliation of residential MSRs measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended September 30, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Beginning balance $ 49,579 $ 21,703 $ 934 Issuances (loans sold with servicing retained) 11,161 36,679 24,058 Net settlements (7,539) (9,555) (1,542) Unrealized gains (losses) included in earnings 10,062 752 (1,747) Ending balance $ 63,263 $ 49,579 $ 21,703 Changes in the fair value of residential MSRs are included in mortgage banking income in the accompanying consolidated statements of income. The table below presents information about significant unobservable inputs (Level 3) used in the valuation of residential MSRs measured at fair value on a recurring basis as of September 30, 2022 and 2021. Significant 2022 2021 Unobservable Range of Inputs Range of Inputs Financial Instrument Inputs (Weighted Average) (Weighted Average) Residential MSRs Discount rate 9.50% - 14.50% (9.51%) 8.50% - 10.00% (8.51%) Prepayment rate 6.01% - 74.89% (6.63%) 6.04% - 43.27% (10.00%) (19 – continued) Impaired Loans Impaired loans are measured at the present value of estimated future cash flows using the loan’s effective interest rate or the fair value of the collateral if the loan is a collateral-dependent loan. At September 30, 2022 and 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 then discounted to reflect management’s estimate of the fair value of the collateral given the current market conditions and the condition of the collateral. At September 30, 2022, the significant unobservable inputs used in the fair value measurement of impaired loans included a discount from appraised value ranging from 0.0% to 100.0% and estimated costs to sell the collateral ranging from 0.0% to 10.0%. At September 30, 2021, the significant unobservable inputs used in the fair value measurement of impaired loans included a discount from appraised value ranging from 0.0% to 100.0% and estimated costs to sell the collateral ranging from 0.0% to 26.0%. Provisions for loan losses recognized for impaired loans for the years ended September 30, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 Provision for loan losses recognized $ 2,421 $ 381 $ 2,424 SBA and Nonresidential Mortgage Loan Servicing Rights Impairment charges to write down SBA loan servicing rights to fair value for the years ended September 30, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 Charges (reductions) to write down SBA loan servicing rights $ 216 $ 66 $ (116) Nonresidential mortgage loan servicing rights represent the value associated with servicing single tenant net lease loans that have been sold. The fair value of nonresidential mortgage loan servicing rights is determined by management on a quarterly basis using a discounted cash flow model, and is classified as Level 3 in the fair value hierarchy. At September 30, 2022 and 2021, the Company did not have any nonresidential mortgage loan servicing rights measured at fair value on a nonrecurring basis. The Company did not recognize any impairment charges on nonresidential mortgage loan servicing rights for the years ended September 30, 2022, 2021 and 2020. (19 – continued) Other Real Estate Owned Other real estate owned is reported at fair value, less estimated costs to dispose of the property. The fair values are determined by real estate appraisals which are then discounted to reflect management’s estimate of the fair value of the property given current market conditions and the condition of the property. At September 30, 2022 and 2021, the Company did not have any other real estate owned measured at fair value on a nonrecurring basis. There were no charges to write down other real estate owned to fair value for the years ended September 30, 2022, 2021 and 2020. Transfers between Categories Financial Instruments Recorded Using Fair Value Option. The Company has elected the fair value option for 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 September 30, 2022 or 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 September 30, 2022 and 2021. Aggregate September 30, 2022: Aggregate Principal (In thousands) Fair Value Balance Difference Residential mortgage loans held for sale $ 38,579 $ 38,517 $ 62 Aggregate September 30, 2021: Aggregate Principal (In thousands) Fair Value Balance Difference Residential mortgage loans held for sale $ 167,813 $ 163,158 $ 4,655 (19 – continued) The table below presents gains and losses and interest included in earnings related to financial assets measured at fair value under the fair value option for the years ended September 30, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Gains (losses) – included in mortgage banking income $ (385) $ 2,017 $ 7,504 Interest income 3,989 5,695 5,026 $ 3,604 $ 7,712 $ 12,530 Fair Value of Financial Instruments The following tables summarize the carrying value and estimated fair value of financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2022 and 2021. Carrying Fair Value Measurements Using: (In thousands) Amount Level 1 Level 2 Level 3 September 30, 2022: Financial assets: Cash and due from banks $ 18,312 $ 18,312 $ — $ — Interest-bearing deposits with banks 23,353 23,353 — — Interest-bearing time deposits 1,613 — 1,613 — Securities available for sale 316,517 — 316,517 — Securities held to maturity 1,558 — 1,593 — Residential mortgage loans held for sale 38,579 — 38,579 — SBA loans held for sale 21,883 — 24,010 — Loans, net 1,436,555 — — 1,366,096 FRB and FHLB stock 20,004 N/A N/A N/A Accrued interest receivable 8,332 — 8,332 — SBA loan servicing rights 3,790 — — 3,790 Residential mortgage loan servicing rights 63,263 — — 63,263 Nonresidential mortgage loan servicing rights 141 — — 141 Derivative assets (included in other assets) 1,030 — 872 158 Equity securities (included in other assets) 103 103 — — Financial liabilities: Deposits 1,515,834 — — 1,510,792 Borrowings from FHLB 307,303 — 302,090 — Subordinated note 50,217 — 48,685 — Accrued interest payable 1,302 — 1,302 — Advance payments by borrowers for taxes and insurance 1,207 — 1,207 — Derivative liabilities (included in other liabilities) 427 — 31 396 (19 – continued) Fair Value of Financial Instruments - continued Carrying Fair Value Measurements Using: (In thousands) Amount Level 1 Level 2 Level 3 September 30, 2021: Financial assets: Cash and due from banks $ 14,191 $ 14,191 $ — $ — Interest-bearing deposits with banks 19,237 19,237 — — Interest-bearing time deposits 2,222 — 2,222 — Securities available for sale 206,681 — 206,681 — Securities held to maturity 1,837 — 2,054 — Residential mortgage loans held for sale 167,813 — 167,813 — Single tenant net lease loans held for sale 23,020 — — 23,020 SBA loans held for sale 24,107 — 27,312 — Loans, net 1,075,936 — — 1,124,226 FRB and FHLB stock 19,258 N/A N/A N/A Accrued interest receivable 6,243 — 6,243 — SBA loan servicing rights 4,447 — — 4,646 Residential mortgage loan servicing rights 49,579 — — 49,579 Derivative assets (included in other assets) 3,632 — 1,465 2,167 Equity securities (included in other assets) 112 112 — — Financial liabilities: Deposits 1,227,580 — — 1,228,147 Borrowings from FHLB 250,000 — 251,877 — Subordinated note 19,865 — 21,083 — Accrued interest payable 258 — 258 — Advance payments by borrowers for taxes and insurance 2,076 — 2,076 — Derivative liabilities (included in other liabilities) 635 — 35 600 The carrying amounts in the preceding tables are included in the consolidated balance sheets under the applicable captions. The contracted or notional amounts of financial instruments with off-balance-sheet risk are disclosed in Note 17, and the fair value of these instruments is considered immaterial. 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 19. The methods utilized to measure the fair value of financial instruments at September 30, 2022 and 2021 represent an approximation of exit price, but an actual exit price may differ. |
CAPITAL REQUIREMENTS AND RESTRI
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS | 12 Months Ended |
Sep. 30, 2022 | |
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS | |
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS | (20) 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 having been 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 2022, 2021 and 2020. The Bank met all capital adequacy requirements to which it was subject as of September 30, 2022 and 2021. As of September 30, 2022, the most recent notification from the FRB categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category. (20 – continued) The Company’s and Bank’s actual capital amounts and ratios are also presented in the table. The Company is not subject to the FRB’s consolidated capital requirements because it has less than $3 billion in total consolidated assets. However, management has elected to disclose the Company’s capital amounts and ratios in addition to the Bank’s required disclosures in the table below. No amount was deducted from capital for interest-rate risk at either date. Minimum To Be Well Minimum Capitalized Under for Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2022: Total capital (to risk-weighted assets): Consolidated $ 226,283 12.65 % $ 143,088 8.00 % N/A N/A Bank 209,602 11.74 % 142,828 8.00 % $ 178,535 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 160,706 8.99 % $ 107,316 6.00 % N/A N/A Bank 194,242 10.88 % 107,121 6.00 % $ 142,828 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 160,706 8.99 % $ 80,487 4.50 % N/A N/A Bank 194,242 10.88 % 80,341 4.50 % $ 116,048 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 160,706 8.03 % $ 80,043 4.00 % N/A N/A Bank 194,242 9.64 % 80,565 4.00 % $ 100,706 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 % (20 – continued) Dividend Restriction As an Indiana corporation, the Company is subject to Indiana law with respect to the payment of dividends. Under Indiana law, the Company may pay dividends so long as it is able to pay its debts as they become due in the usual course of business and its assets exceed the sum of its total liabilities, plus the amount that would be needed, if the Company were to be dissolved at the time of the dividend, to satisfy any rights that are preferential to the rights of the persons receiving the dividend. The ability of the Company to pay dividends depends primarily on the ability of the Bank to pay dividends to the Company. The payment of dividends by the Bank is subject to banking regulations and applicable Indiana state law. The amount of dividends that the Bank may pay to the Company in any calendar year without prior approval from banking regulators cannot exceed net income for that year to date plus retained net income (as defined) for the preceding two calendar years. The Bank may not declare or pay a cash dividend or repurchase any of its capital stock if the effect thereof would cause the regulatory capital of the Bank to be reduced below regulatory capital requirements imposed by banking regulators or the FDIC, or below the amount of the liquidation account established upon completion of the conversion. Liquidation Account Upon completion of its conversion from mutual to stock form on October 6, 2008, the Bank established a liquidation account in an amount equal to its retained earnings at March 31, 2008, totaling $29.3 million. The liquidation account is maintained for the benefit of depositors as of the March 31, 2007 eligibility record date (or the June 30, 2008 supplemental eligibility record date) who maintain their deposits in the Bank after conversion. In the event of complete liquidation, and only in such an event, each eligible depositor is entitled to receive a liquidation distribution from the liquidation account in the proportionate amount of the then current adjusted balance for deposits then held, before any liquidation distribution may be made with respect to the Bank’s stockholders. Except for the repurchase of stock and payment of dividends by the Bank, the existence of the liquidation account does not restrict the use or application of retained earnings of the Bank. Stock Split On August 16, 2021, the Company approved and declared a three three |
SUPPLEMENTAL DISCLOSURE FOR EAR
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2022 | |
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE | |
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE | (21) Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock outstanding during the periods presented. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock options, restricted stock and other potentially dilutive securities outstanding. Earnings and dividends per share are restated for stock splits and dividends through the date of issuance of the financial statements. Earnings per share information is presented below for the years ended September 30, 2022, 2021 and 2020. Years Ended September 30, (In thousands, except share and per share data) 2022 2021 2020 Basic: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 16,444 $ 29,567 $ 33,354 Shares: Weighted average common shares outstanding, basic 7,058,550 7,107,786 7,070,040 Net income per common share, basic $ 2.33 $ 4.16 $ 4.72 Diluted: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 16,444 $ 29,567 $ 33,354 Shares: Weighted average common shares outstanding, basic 7,058,550 7,107,786 7,070,040 Add: Dilutive effect of outstanding options 71,240 56,176 48,540 Add: Dilutive effect of restricted stock 12,056 9,771 9,282 Weighted average common shares outstanding, as adjusted 7,141,846 7,173,733 7,127,862 Net income per common share, diluted $ 2.30 $ 4.12 $ 4.68 Nonvested restricted stock shares are not considered as outstanding for purposes of computing weighted average common shares outstanding. There were no antidilutive restricted stock awards excluded from the calculation of diluted net income per share for the years ended September 30, 2022, 2021 and 2020. Stock options for 137,250, 49,974 and 66,474 shares of common stock were excluded from the calculation of diluted net income per common share for the years ended September 30, 2022, 2021 and 2020, respectively, because their effect was antidilutive. |
PARENT COMPANY CONDENSED FINANC
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Sep. 30, 2022 | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | (22) Condensed financial information for First Savings Financial Group, Inc. (parent company only) follows: Balance Sheets As of September 30, (In thousands) 2022 2021 Assets: Cash and due from banks $ 16,940 $ 6,870 Other assets 1,164 755 Investment in subsidiaries 185,374 193,926 $ 203,478 $ 201,551 Liabilities and Equity: Subordinated notes $ 50,217 $ 19,865 Accrued expenses 638 1,309 Stockholders’ equity 152,623 180,377 $ 203,478 $ 201,551 Statements of Income Years Ended September 30, (In thousands) 2022 2021 2020 Dividend income from subsidiaries $ 1,300 $ 5,175 $ 1,000 Interest expense (2,111) (1,274) (1,274) Other operating expenses (1,475) (1,076) (1,002) Income (loss) before income taxes and equity in undistributed net income of subsidiaries (2,286) 2,825 (1,276) Income tax benefit 795 504 598 Income (loss) before equity in undistributed net income of subsidiaries (1,491) 3,329 (678) Equity in undistributed net income of subsidiaries 17,935 26,238 34,032 Net income $ 16,444 $ 29,567 $ 33,354 (22 – continued) Statements of Cash Flows Years Ended September 30, (In thousands) 2022 2021 2020 Operating Activities: Net income $ 16,444 $ 29,567 $ 33,354 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed net income of subsidiaries (17,935) (26,238) (34,032) Stock compensation expense 688 277 279 Net change in other assets and liabilities (93) 201 182 Net cash provided by (used in) operating activities (896) 3,807 (217) Investing Activities: Investment in bank subsidiary (10,000) — — Net cash used in investing activities (10,000) — — Financing Activities: Net proceeds from subordinated debt 30,258 — — Exercise of stock options — 27 148 Tax paid on stock award shares for employees (48) (41) (53) Purchase of treasury stock (4,745) — — Dividends paid (4,499) (1,685) (1,590) Net cash provided by (used in) financing activities 20,966 (1,699) (1,495) Net increase (decrease) in cash and due from banks 10,070 2,108 (1,712) Cash and due from banks at beginning of year 6,870 4,762 6,474 Cash and due from banks at end of year $ 16,940 $ 6,870 $ 4,762 |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Sep. 30, 2022 | |
CONCENTRATION OF CREDIT RISK | |
CONCENTRATION OF CREDIT RISK | (23) At September 30, 2022 and 2021, the Company had a concentration of credit risk with correspondent banks in excess of the federal deposit insurance limit of $13.4 million and $9.5 million, respectively. |
SUPPLEMENTAL DISCLOSURE OF CASH
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | 12 Months Ended |
Sep. 30, 2022 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | (24) Years Ended September 30, (In thousands) 2022 2021 2020 Cash payments for: Interest $ 9,301 $ 8,517 $ 10,817 Income taxes (net of refunds received) (3,226) 9,051 3,971 Non-cash activities: Net transfers from loans to loans held for sale — 41,703 15,916 Net transfers from loans held for sale to loans 13,139 — — Transfers from loans to OREO — 426 — Proceeds from sales of OREO financed through loans — — — Cashless exercise of stock options 39 77 249 Transfers from OREO to premises and equipment 721 — — |
SELECTED QUARTERLY FINANCIAL IN
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Sep. 30, 2022 | |
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | (25) First Second Third Fourth (In thousands, except per share data) Quarter Quarter Quarter Quarter September 30, 2022: Interest income $ 15,762 $ 15,801 $ 18,479 $ 20,956 Interest expense 1,859 1,788 2,568 4,131 Net interest income 13,903 14,013 15,911 16,825 Provision (credit) for loan losses 526 (30) 532 880 Net interest income after provision (credit) for loan losses 13,377 14,043 15,379 15,945 Noninterest income 16,591 20,072 10,033 4,531 Noninterest expenses 24,852 25,461 22,835 18,001 Income before income taxes 5,116 8,654 2,577 2,475 Income tax expense (benefit) 811 1,619 (61) 9 Net income $ 4,305 $ 7,035 $ 2,638 $ 2,466 Net income per common share, basic $ 0.60 $ 0.99 $ 0.37 $ 0.35 Net income per common share, diluted $ 0.60 $ 0.98 $ 0.37 $ 0.35 (25 – continued) First Second Third Fourth (In thousands, except per share data) Quarter Quarter Quarter Quarter September 30, 2021: Interest income $ 16,026 $ 16,840 $ 16,150 $ 16,243 Interest expense 2,287 2,060 1,921 1,819 Net interest income 13,739 14,780 14,229 14,424 Provision (credit) for loan losses 668 287 (2,730) 8 Net interest income after provision (credit) for loan losses 13,071 14,493 16,959 14,416 Noninterest income 46,183 38,973 18,785 16,495 Noninterest expenses 44,402 39,284 30,619 25,104 Income before income taxes 14,852 14,182 5,125 5,807 Income tax expense 4,527 3,695 817 958 Net income 10,325 10,487 4,308 4,849 Net income attributable to noncontrolling interest in subsidiary 402 — — — Net income attributable to First Savings Financial Group, Inc. $ 9,923 $ 10,487 $ 4,308 $ 4,849 Net income per common share, basic $ 1.40 $ 1.48 $ 0.61 $ 0.68 Net income per common share, diluted $ 1.39 $ 1.46 $ 0.60 $ 0.67 September 30, 2020: Interest income $ 13,661 $ 13,554 $ 14,719 $ 15,765 Interest expense 2,875 2,783 2,543 2,337 Net interest income 10,786 10,771 12,176 13,428 Provision for loan losses 505 1,705 2,980 2,772 Net interest income after provision for loan losses 10,281 9,066 9,196 10,656 Noninterest income 18,232 11,133 46,962 57,024 Noninterest expenses 24,272 22,075 35,009 44,452 Income (loss) before income taxes 4,241 (1,876) 21,149 23,228 Income tax expense (benefit) 638 (774) 5,540 7,257 Net income (loss) 3,603 (1,102) 15,609 15,971 Net income (loss) attributable to noncontrolling interest in subsidiary 164 (475) 204 834 Net income (loss) attributable to First Savings Financial Group, Inc. $ 3,439 $ (627) $ 15,405 $ 15,137 Net income (loss) per common share, basic $ 0.49 $ (0.09) $ 2.17 $ 2.13 Net income (loss) per common share, diluted $ 0.48 $ (0.09) $ 2.17 $ 2.12 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2022 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | (26) The Company’s operations include three primary segments: core banking, SBA lending, and mortgage banking. The core banking segment originates residential, commercial and consumer loans and attracts deposits from its customer base. Net interest income from loans and investments funded by deposits and borrowings is the primary revenue for the core banking segment. The SBA lending segment originates loans guaranteed by the SBA, subsequently selling the guaranteed portion to outside investors. Net gains on sales of loans and net interest income are the primary sources of revenue for the SBA lending segment. The mortgage banking segment originates residential mortgage loans and sells them in the secondary market. Net gains on the sales of loans, income from derivative financial instruments and net interest income are the primary sources of revenue for the mortgage banking segment. The core banking segment is comprised primarily of the Bank and First Savings Investments, Inc., while the SBA lending segment’s revenues are comprised primarily of net interest income and gains on the sales of SBA loans generated by Q2. The mortgage banking segment operates as a separate division of the Bank. The following segment financial information has been derived from the internal financial statements of the Company which are used by management to monitor and manage financial performance. The accounting policies of the three segments are the same as those of the Company. The amounts reflected in the “Other” column in the tables below represent combined balances of the Company and the Captive, and are the primary differences between the sum of the segment amounts and consolidated totals, along with amounts to eliminate transactions between segments. Core SBA Mortgage Consolidated (In thousands) Banking Lending Banking Other Totals Year Ended September 30, 2022: Net interest income (loss) $ 54,252 $ 6,108 $ 2,360 $ (2,068) $ 60,652 Provision for loan losses 1,295 613 — — 1,908 Net interest income (loss) after provision 52,957 5,495 2,360 (2,068) 58,744 Net gains on sales of loans, SBA — 3,698 — — 3,698 Mortgage banking income (loss) (2) — 38,339 — 38,337 Noninterest income 8,292 4,623 38,312 — 51,227 Noninterest expense (income) 38,821 8,721 43,962 (355) 91,149 Income (loss) before taxes 22,428 1,397 (3,290) (1,713) 18,822 Income tax expense (benefit) 3,377 408 (618) (789) 2,378 Segment profit (loss) 19,051 989 (2,672) (924) 16,444 Noncash items: Depreciation and amortization 2,109 30 162 147 2,448 Segment assets at September 30, 2022 1,935,896 105,342 107,570 (91,146) 2,057,662 (26 – continued) Core SBA Mortgage Consolidated (In thousands) Banking Lending Banking Other Totals Year Ended September 30, 2021: Net interest income (loss) $ 46,122 $ 10,339 $ 1,940 $ (1,229) $ 57,172 Provision (credit) for loan losses (1,782) 15 — — (1,767) Net interest income (loss) after provision 47,904 10,324 1,940 (1,229) 58,939 Net gains on sales of loans, SBA — 8,740 — — 8,740 Mortgage banking income 4 — 104,500 — 104,504 Noninterest income 6,331 9,661 104,444 — 120,436 Noninterest expense (income) 35,636 9,374 94,768 (369) 139,409 Income (loss) before taxes 18,599 10,611 11,616 (860) 39,966 Income tax expense (benefit) 2,935 2,512 5,047 (497) 9,997 Segment profit (loss) 15,664 8,099 6,569 (363) 29,969 Noncash items: Depreciation and amortization 1,953 42 237 68 2,300 Segment assets at September 30, 2021 1,469,371 168,342 232,279 (148,598) 1,721,394 Core SBA Mortgage Consolidated (In thousands) Banking Lending Banking Other Totals Year Ended September 30, 2020: Net interest income (loss) $ 39,408 $ 5,911 $ 3,046 $ (1,204) $ 47,161 Provision for loan losses 4,636 3,326 — — 7,962 Net interest income (loss) after provision 34,772 2,585 3,046 (1,204) 39,199 Net gains on sales of loans, SBA — 5,673 — — 5,673 Mortgage banking income 8 — 120,725 — 120,733 Noninterest income 5,905 6,751 120,695 — 133,351 Noninterest expense (income) 29,772 7,853 88,573 (390) 125,808 Income (loss) before taxes 10,905 1,483 35,168 (814) 46,742 Income tax expense (benefit) 2,265 189 10,793 (586) 12,661 Segment profit (loss) 8,640 1,294 24,375 (228) 34,081 Noncash items: Depreciation and amortization 1,558 51 181 68 1,858 Segment assets at September 30, 2020 1,459,467 283,994 293,973 (272,809) 1,764,625 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Sep. 30, 2022 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | (27) REVENUE FROM CONTRACTS WITH CUSTOMERS Substantially all of the Company’s revenue from contracts with customers within the scope of FASB ASC 606 is included in the core banking segment and is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the years ended September 30, 2022, 2021 and 2020: Year Ended September 30, (In thousands) 2022 2021 2020 Service charges on deposit accounts $ 1,864 $ 1,468 $ 1,581 ATM and interchange fees 2,753 2,399 2,116 Investment advisory income 717 589 288 Other 110 103 101 Revenue from contracts with customers 5,444 4,559 4,086 Gain on sale of securities 476 — 7 Gain on sale of SBA loans 3,698 8,740 5,673 Gain on sale of single tenant net lease loans 719 — — Mortgage banking income 38,337 104,504 120,733 Increase in cash value of life insurance 993 785 732 Real estate lease income 571 592 589 Other 989 1,256 1,531 Other noninterest income 45,783 115,877 129,265 Total noninterest income $ 51,227 $ 120,436 $ 133,351 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 (27 – continued) Other Income |
MORTGAGE BANKING INCOME
MORTGAGE BANKING INCOME | 12 Months Ended |
Sep. 30, 2022 | |
MORTGAGE BANKING INCOME | |
MORTGAGE BANKING INCOME | (28) MORTGAGE BANKING INCOME The components of mortgage banking income for the years ended September 30, 2022, 2021 and 2020 were as follows: 2022 2021 2020 (In thousands) Origination and sale of mortgage loans (1) $ (674) $ 83,874 $ 105,659 Mortgage brokerage income 762 1,500 — Net change in fair value of loans held for sale and interest rate lock commitments (4,206) (18,856) 16,680 Realized and unrealized hedging gains (losses) 20,398 4,140 (22,412) Capitalized residential mortgage loan servicing rights 11,161 36,679 24,058 Net change in fair value of residential mortgage loan servicing rights 2,523 (8,803) (3,289) Net loan servicing income 9,045 6,565 651 Provisions for loan repurchases and indemnifications (672) (595) (614) Total mortgage banking income $ 38,337 $ 104,504 $ 120,733 (1) Includes origination fees and realized gains and losses on the sale of mortgage loans in the secondary market. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations | Nature of Operations First Savings Financial Group, Inc. (the “Company”) is a financial holding company and the parent of First Savings Bank (the “Bank”) and First Savings Insurance Risk Management, Inc. (the “Captive”). The Bank, which is a wholly-owned Indiana-chartered commercial bank subsidiary of the Company, provides a variety of banking services to individuals and business customers through 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 residential mortgage, commercial mortgage, construction, commercial business and consumer loans, and to a lesser extent, to invest in mortgage-backed securities and other securities. The Bank has two wholly owned subsidiaries: First Savings Investments, Inc., a Nevada corporation that manages a securities portfolio and Southern Indiana Financial Corporation, which is currently inactive. On April 25, 2017, the Bank formed Q2 Business Capital, LLC (“Q2”), which is an Indiana limited liability company that specializes in the origination and servicing of U.S. Small Business Administration (“SBA”) loans. The Bank originally owned 51% of Q2’s membership interests. On December 31, 2020, the Bank completed the acquisition of the minority interests in Q2, and Q2 became a wholly-owned subsidiary of the Bank. As part of the acquisition of the minority interests, the Bank paid or expects to pay total consideration of $3.7 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 $581,000 and a reduction of additional paid-in capital of $2.4 million. The Captive, which is a wholly-owned insurance subsidiary of the Company, is a Nevada corporation that provides property and casualty insurance to the Company, the Bank and the Bank’s active subsidiaries. In addition, the Captive provides reinsurance to 11 other third-party insurance captives for which insurance may not be currently available or economically feasible in the insurance marketplace. |
Basis of Consolidation and Reclassifications | Basis of Consolidation and Reclassifications The consolidated financial statements include the accounts of the Company and its subsidiaries, have been prepared in accordance with accounting principles generally accepted in the United States of America and conform to general practices within the banking industry. Intercompany balances and transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year presentation. The reclassifications had no effect on net income or stockholders’ equity. |
Statements of Cash Flows | Statements of Cash Flows For purposes of the statements of cash flows, the Company has defined cash and cash equivalents as cash on hand, amounts due from banks (including cash items in process of clearing), interest-bearing deposits with other banks having an original maturity of 90 days or less and money market funds. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and the valuation of real estate and other assets acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for loan losses and the valuation of other real estate owned, management obtains independent appraisals for significant properties. A substantial portion of the Company’s loan portfolio consists of single-family residential and commercial real estate loans to customers in the southern Indiana and Louisville, Kentucky metropolitan area. Accordingly, the ultimate collectability of a substantial portion of the Company’s loan portfolio and the recovery of the carrying amount of other real estate owned are susceptible to changes in local market conditions. While management uses available information to recognize losses on loans and other real estate owned, further reductions in the carrying amounts of loans and other real estate owned may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans and other real estate owned. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible the estimated losses on loans and other real estate owned may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. |
Investment Securities | Investment Securities Securities Available for Sale Amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity, adjusted for anticipated prepayments. Unrealized gains and losses, net of tax, on securities available for sale are included in other comprehensive income and the accumulated unrealized holding gains and losses are reported as a separate component of equity until realized. Realized gains and losses on the sale of securities available for sale are determined using the specific identification method and are included in other noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. (1 - continued) Investment Securities - continued Securities Held to Maturity Declines in the fair value of individual available for sale and held to maturity securities below their amortized cost that are other than temporary result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than amortized cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value. Equity Securities Investments in non-marketable equity securities such as FRB stock and FHLB stock are carried at cost and are classified as restricted securities. The Bank is a member of the FHLB system and is required to own FHLB stock, the amount of which depends on the level of borrowings and other factors. Both cash and stock dividends received from these investments are included in dividend income. Impairment testing on these investments is based on applicable accounting guidance and the cost basis is reduced when impairment is deemed to be other-than-temporary. |
Loans Held for Sale | Loans Held for Sale The Company has elected to record substantially all residential mortgage loans held for sale at fair value in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 825-10. Net unrealized gains and losses are included in mortgage banking income in the accompanying consolidated statements of income. Realized gains on sales of residential mortgage loans are determined using the specific identification method and are included in mortgage banking income. The Company originates loans to customers under the SBA 7(a) and other programs that generally provide for SBA guarantees of 75% to 90% of each loan. The Company intends to sell the guaranteed portion of the SBA loans. The guaranteed portion of the SBA loans was classified as loans held for sale at September 30, 2022 and 2021. At September 30, 2022 and 2021, SBA loans held for sale totaling $21.9 million and $24.1 million, respectively, were carried at the lower of aggregate cost or fair value. Realized gains and losses on sales of SBA loans held for sale are determined based on the allocation of participating interests sold and retained and are included in net gain on sales of SBA loans in the accompanying consolidated statements of income. Direct loan origination costs and fees related to SBA loans held for sale are deferred upon origination and are recognized as an adjustment to the gain or loss on the date of sale. SBA loans held for sale are sold on a servicing retained basis. (1 - continued) Loans Held for Sale - continued During 2022 and 2021 the Company transferred certain single tenant net lease loans from loans to loans held for sale and sold those loans on the secondary market. At September 30, 2022, there were no single tenant net lease loans held for sale. At September 30, 2021, single tenant net lease loans held for sale totaling $23.0 million were carried at the lower of aggregate cost or fair value. Realized gains and losses on sales of single tenant net lease loans held for sale are determined using the specific identification method. Single tenant net lease loans held for sale are sold on a servicing retained basis. |
Transfers of Financial Assets | Transfers of Financial Assets The Company accounts for transfers and servicing of financial assets in accordance with FASB ASC 860, Transfers and Servicing Transfers of a portion of a loan must meet the criteria of a participating interest. If it does not meet the criteria of a participating interest, the transfer must be accounted for as a secured borrowing. In order to meet the criteria for a participating interest, all cash flows from the loan must be divided proportionately, the rights of each loan holder must have the same priority, and the loan holders must have no recourse to the transferor other than standard representations and warranties and no loan holder has the right to pledge or exchange the entire loan. The Company sells financial assets in the normal course of business, the majority of which are related to the SBA-guaranteed portion of loans, residential mortgage loan sales through established programs, and commercial loan sales through participation agreements. In accordance with accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. When the Company sells financial assets, it may retain servicing rights and/or other interests in the financial assets. The gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the servicing right recognized, and the consideration received and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests held by the Company are carried at the lower of cost or fair value, with the exception of mortgage servicing rights related to sales of residential mortgage loans, which are carried at fair value. |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans Held for Investment Loans are stated at unpaid principal balances, less net deferred loan fees and the allowance for loan losses. Loan origination and commitment fees, as well as certain direct costs of underwriting and closing loans, are deferred and amortized as a yield adjustment to interest income over the lives of the related loans using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. (1 - continued) Loans and Allowance for Loan Losses - continued Nonaccrual Loans The recognition of income on a loan is discontinued and previously accrued interest is reversed when interest or principal payments become 90 days past due unless, in the opinion of management, the outstanding interest remains collectible. Past due status is determined based on contractual terms. Generally, by applying the cash receipts method, interest income on nonaccrual loans is subsequently recognized only as received until the loan is returned to accrual status. The cash receipts method is used when the likelihood of further loss on the loan is remote. Otherwise, the Company applies the cost recovery method and applies all payments as a reduction of the unpaid principal balance until the loan qualifies for return to accrual status. Interest income on impaired loans is recognized using the cost recovery method, unless the likelihood of further loss is considered remote. A loan is restored to accrual status when all principal and interest payments are brought current and the borrower has demonstrated the ability to make future payments of principal and interest as scheduled, which generally requires that the borrower demonstrate a period of performance of at least six consecutive months. Loan Charge-Offs For portfolio segments other than consumer loans, the Company’s practice is to charge-off any loan or portion of a loan when the loan is determined by management to be uncollectible due to the borrower’s failure to meet repayment terms, the borrower’s deteriorating or deteriorated financial condition, depreciation of the underlying collateral, the loan’s classification as a loss by regulatory examiners, or for other reasons. A partial charge-off is recorded on a loan when the uncollectibility of a portion of the loan has been confirmed, such as when a loan is discharged in bankruptcy, the collateral is liquidated, a loan is restructured at a reduced principal balance, or other identifiable events that lead management to determine the full principal balance of the loan will not be repaid. A specific reserve is recognized as a component of the allowance for estimated losses on loans individually evaluated for impairment. Partial charge-offs of loans are included in the Company’s historical loss experience used to estimate the general component of the allowance for loan losses as discussed below. Consumer loans not secured by real estate are typically charged off at 90 days past due, or earlier if deemed uncollectible, unless the loans are in the process of collection. Overdrafts are charged off after 45 days past due. Charge-offs are typically recorded on loans secured by real estate when the property is foreclosed upon when the carrying value of the loan exceeds the property’s fair value, less estimated costs to sell. Allowance for Loan Losses The allowance for loan losses reflects management’s judgment of probable incurred loan losses at the balance sheet date. Additions to the allowance for loan losses are made by the provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company evaluates the allowance for loan losses on a quarterly basis based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. (1 - continued) Loans and Allowance for Loan Losses - continued The allowance consists of specific and general components. The specific component relates to loans that are individually evaluated for impairment. A specific reserve is established when the underlying discounted collateral value (or present value of estimated future cash flows) of the impaired loan is lower than the carrying value of that loan. The general component covers loans not considered to be impaired. Such loans are pooled by segment and losses are modeled using annualized historical loss experience adjusted for qualitative factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 60-month period with the exception of the SBA loan portfolio which uses lookback periods of 24 to 48 months. The Company’s historical loss experience is then adjusted for qualitative factors that are reviewed on a quarterly basis based on the risks present for each portfolio segment. Management considers changes and trends in the following qualitative loss factors: levels of and trends in delinquencies and impaired loans; trends in the volume and term of new loan originations; national and local economic trends and conditions; changes in lending policies, procedures and practices; changes in the experience and ability of lending management and other staff; changes in the quality and depth of the Company’s loan review system; trends in collateral valuation in the Company’s lending area; the existence and effect of any concentrations of credit and other factors as determined by management including peer data and the economic uncertainties surrounding the coronavirus (“COVID-19”) pandemic. Each qualitative factor is evaluated and a qualitative factor adjustment is applied to the actual historical loss factors in determining the adjusted loss factors used in management’s allowance for loan losses adequacy calculation. At September 30, 2022, the Company’s allowance for loan losses totaled $15.4 million, of which $13.4 million related to qualitative factor adjustments. At September 30, 2021, the Company’s allowance for loan losses totaled $14.3 million, of which $13.1 million related to qualitative factor adjustments. Management exercises significant judgment in evaluating the relevant historical loss experience and the qualitative factors. Management also monitors the differences between estimated and actual incurred loan losses for loans considered impaired in order to evaluate the effectiveness of the estimation process and make any changes in the methodology as necessary. The following portfolio segments are considered in the allowance for loan loss analysis: residential real estate, commercial real estate (including single tenant net lease and loans originated through SBA programs), multi-family residential real estate, construction, land and land development, commercial business (including loans originated through SBA programs) and consumer. Residential real estate loans (including first-lien home equity lines of credit) primarily consist of loans to individuals for the purchase or refinance of their primary residence, with a small portion of the segment secured by non-owner-occupied residential investment properties. The risks associated with residential real estate loans are closely correlated to the local housing market and general economic conditions, as repayment of the loans is primarily dependent on the borrower’s or tenant’s personal cash flow and employment status. (1 - continued) Loans and Allowance for Loan Losses - continued Commercial real estate loans include the single tenant net lease loans and loans originated through SBA programs in addition to the Company’s core commercial loans, and are comprised of loans secured by various types of collateral including office buildings, warehouses, retail space and mixed use buildings located in the Company’s primary lending area and in other states. Risks related to commercial real estate lending are related to the market value of the property taken as collateral, the underlying cash flows and general economic conditions. Repayment of these loans is generally dependent on the ability of the borrower to attract tenants at lease rates that provide for adequate debt service and can be impacted by general economic conditions, which impact vacancy rates. The Company generally obtains loan guarantees from financially capable parties for commercial real estate loans. Multi-family residential real estate loans primarily consist of loans secured by apartment buildings and other multi-tenant developments generally located in the Company’s primary lending area. Repayment of these loans is primarily dependent on the borrower’s ability to attract tenants and collect rents that provide for adequate debt service. The risks associated with these loans are closely correlated to the local housing market and general economic conditions. Construction loans consist of single-family residential properties, multi-family properties and commercial projects, and include both owner-occupied and speculative investment properties. Risks inherent in construction lending are related to the market value of the property held as collateral, the cost and timing of constructing or improving a property, the borrower’s ability to use funds generated by a project to service a loan until a project is completed, movements in interest rates and the real estate market during the construction phase, and the ability of the borrower to obtain permanent financing. Land and land development loans primarily consist of loans secured by farmland and vacant land held for long-term investment or development. The risks associated with land and land development loans are related to the market value of the property taken as collateral and the underlying cash flows for loans secured by farmland, and general economic conditions. Commercial business loans include loans originated through SBA programs and lines of credit to businesses, term loans and letters of credit secured by business assets such as equipment, accounts receivable, inventory, or other assets excluding real estate and are generally made to finance capital expenditures or fund operations. Commercial loans contain risks related to the value of the collateral securing the loan and the repayment is primarily dependent upon the financial success and viability of the borrower. As with commercial real estate loans, the Company generally obtains loan guarantees from financially capable parties for commercial business loans. In addition, in an effort to support our communities during the pandemic, the Company participated in the Paycheck Protection Program (“PPP”) and the majority of the Company’s SBA clients applied for participation in the SBA’s PPP loan program. All PPP loans are 100% guaranteed by the SBA. Consumer loans consist primarily of home equity lines of credit and other loans secured by junior liens on the borrower’s personal residence, home improvement loans, automobile and truck loans, boat loans, mobile home loans, loans secured by savings deposits and other personal loans. The risks associated with these loans are related to the local housing market and local economic conditions including the unemployment level. There were no significant changes to the Company’s accounting policies or methodology used to estimate the allowance for loan losses during the years ended September 30, 2022, 2021, and 2020. (1 - continued) Loans and Allowance for Loan Losses - continued Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Values for collateral dependent loans are generally based on appraisals obtained from independent licensed real estate appraisers, with adjustments applied for estimated costs to sell the property, estimated costs to complete unfinished or repair damaged property, and other known defects. New appraisals are generally obtained for all significant properties when a loan is identified as impaired. Generally, a property is considered significant if the value of the property is estimated to exceed $250,000. Subsequent appraisals are obtained as needed or if management believes there has been a significant change in the market value of a collateral property securing an impaired loan. In instances where it is not deemed necessary to obtain a new appraisal, management would base its impairment and allowance for loan loss analysis on the original appraisal with adjustments for current conditions based on management’s assessment of market factors and management’s inspection of the property. Troubled Debt Restructurings The modification of a loan is considered to be a troubled debt restructuring (“TDR”) if the debtor is experiencing financial difficulties and the Company grants a concession to the debtor that it would not otherwise consider. By granting the concession, the Company expects to obtain more cash or other value from the debtor, or to increase the probability of receipt, than would be expected by not granting the concession. The concession may include, but is not limited to, reduction of the stated interest rate of the loan, reduction of accrued interest, extension of the maturity date or reduction of the face amount of the debt. A concession will be granted when, as a result of the restructuring, the Company does not expect to collect all amounts due, including interest at the original stated rate. A concession may also be granted if the debtor is not able to access funds elsewhere at a market rate for debt with similar risk characteristics as the restructured debt. The Company’s determination of whether a loan modification is a TDR considers the individual facts and circumstances surrounding each modification. A TDR can involve a loan remaining on nonaccrual, moving to nonaccrual or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Generally, a nonaccrual loan that is restructured in a TDR remains on nonaccrual status for a period of at least six months following the restructuring in order to ensure that the borrower performs in accordance with the restructured terms, including consistent and timely payments of at least six consecutive months according to the restructured terms. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. The Company uses the straight line method of computing depreciation at rates adequate to amortize the cost of the applicable assets over their estimated useful lives. Maintenance and repairs are expensed as incurred. The cost and related accumulated depreciation of assets sold, or otherwise disposed of, are removed from the related accounts and any gain or loss is included in earnings. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned includes formally foreclosed property, property obtained via a deed in lieu of foreclosure and former banking facilities held for sale. At the time of acquisition, foreclosed real estate is recorded at its fair value, less estimated costs to sell, which becomes the property’s new cost basis. Any write-downs based on the property’s fair value at the date of acquisition are charged to the allowance for loan losses. After acquisition or the decision to classify property as held for sale, valuations are periodically performed by management and property held for sale is carried at the lower of the new cost basis or fair value, less estimated costs to sell. Costs incurred in maintaining other real estate owned and subsequent impairment adjustments to the carrying amount of a property, if any, are included in noninterest expense. |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance The Bank has purchased life insurance policies on certain directors, officers and key employees to help offset costs associated with the Bank’s compensation and benefit programs. The Bank is the owner and is a joint or sole beneficiary of the policies. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Income from the increase in cash surrender value of the policies and income from the recognition of death benefits is reported in noninterest income. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill recognized in a business combination represents the excess of the fair value of consideration transferred over the fair value of assets acquired and liabilities assumed. Goodwill is evaluated for possible impairment at least annually or more frequently upon the occurrence of an event or change in circumstances that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to: (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. Other intangible assets consist of acquired core deposit intangibles. Core deposit intangibles are amortized over the estimated economic lives of the acquired core deposits. The carrying amount of core deposit intangibles and the remaining estimated economic life are evaluated annually or whenever events or circumstances indicate the carrying amount may not be recoverable or the remaining period of amortization requires revision. |
Derivative Financial Instruments | Derivative Financial Instruments In connection with the origination of residential mortgage loans to be sold in the secondary market, the Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (i.e., rate lock commitment). The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 15 to 60 days. The Company also enters into forward mortgage loan commitments to sell to various investors to protect itself against exposure to various factors and to reduce sensitivity to interest rate movements. Both the interest rate lock commitments and the related forward mortgage loan sales contracts are considered derivatives and are recorded on the balance sheet at fair value in accordance with FASB ASC 815, Derivatives and Hedging |
Benefit Plans | Benefit Plans The Company provides a contributory defined contribution plan available to all eligible employees. The Company also established a leveraged employee stock ownership plan (“ESOP”) on October 6, 2008 that includes substantially all employees. The Company accounts for the ESOP in accordance with FASB ASC 718-40, Employee Stock Ownership Plans |
Stock Based Compensation | Stock Based Compensation The Company has adopted the fair value based method of accounting for stock-based compensation prescribed in FASB ASC 718-20, Compensation – Stock Compensation |
Income Taxes | Income Taxes When income tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while other positions are subject to some degree of uncertainty regarding the merits of the position taken or the amount of the position that would be sustained. The Company recognizes the benefits of a tax position in the consolidated financial statements of the period during which, based on all available evidence, management believes it is more-likely-than-not (more than 50 percent probable) that the tax position would be sustained upon examination. Income tax positions that meet the more-likely-than-not threshold are measured as the largest amount of income tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with the income tax positions claimed on income tax returns that exceeds the amount measured as described above is reflected as a liability for unrecognized income tax benefits in the consolidated balance sheets, along with any associated interest and penalties that would be payable to the taxing authorities, if there were an examination. Interest and penalties associated with unrecognized income tax benefits are classified as additional income taxes in the consolidated statements of income. (1 - continued) Income Taxes - continued Income taxes are provided for the tax effects of the transactions reported in the financial statements and consist of taxes currently due plus deferred income taxes. Income tax reporting and financial statement reporting rules differ in many respects. As a result, there will often be a difference between the carrying amount of an asset or liability as presented in the accompanying consolidated balance sheets and the amount that would be recognized as the tax basis of the same asset or liability computed based on the effects of tax positions recognized, as described in the preceding paragraph. These differences are referred to as temporary differences because they are expected to reverse in future years. Deferred income tax assets are recognized for temporary differences where their future reversal will result in future tax benefits. Deferred income tax assets are also recognized for the future tax benefits expected to be realized from net operating loss or tax credit carryforwards. Deferred income tax liabilities are recognized for temporary differences where their future reversal will result in the payment of future income taxes. Deferred income tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. |
Advertising Costs | Advertising Costs Advertising costs are charged to operations when incurred. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of reported net income and other comprehensive income. Other comprehensive income, recognized as a separate component of stockholders’ equity, includes the change in unrealized gains and losses on securities available for sale. Amounts reclassified out of unrealized gains or losses on securities available for sale included in accumulated other comprehensive income or loss are included in the net gain on sales of available for sale securities line item in the consolidated statements of income. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following are summaries of recently issued or adopted accounting pronouncements that impact the accounting and reporting practices of the Company: In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326) In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. (1 - continued) Recent Accounting Pronouncements - continued In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurements (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions The Company has determined that all other recently issued accounting pronouncements will not have a material impact on the Company’s consolidated financial statements or do not apply to its operations. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
INVESTMENT SECURITIES | |
Schedule of Amortized Cost and Securities Available For Sale | Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gain Losses Value September 30, 2022: Securities available for sale: U.S. Treasury notes $ 30,809 $ — $ 3,514 $ 27,295 Agency mortgage-backed 30,786 3 3,289 27,500 Agency CMO 15,562 — 741 14,821 Privately-issued CMO 495 4 29 470 Privately-issued ABS 561 16 8 569 SBA certificates 12,255 1 244 12,012 Municipal bonds 260,326 167 26,643 233,850 Total securities available for sale $ 350,794 $ 191 $ 34,468 $ 316,517 Securities held to maturity: Agency mortgage-backed $ 45 $ — $ — $ 45 Municipal bonds 1,513 35 — 1,548 Total securities held to maturity $ 1,558 $ 35 $ — $ 1,593 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gain Losses Value September 30, 2021: Securities available for sale: U.S. Treasury bills $ 250 $ — $ — $ 250 Agency mortgage-backed 8,143 293 52 8,384 Agency CMO 13,315 235 20 13,530 Privately-issued CMO 729 81 7 803 Privately-issued ABS 721 51 — 772 SBA certificates 2,157 2 21 2,138 Municipal bonds 170,102 11,055 353 180,804 Total securities available for sale $ 195,417 $ 11,717 $ 453 $ 206,681 Securities held to maturity: Agency mortgage-backed $ 64 $ 5 $ — $ 69 Municipal bonds 1,773 212 — 1,985 Total securities held to maturity $ 1,837 $ 217 $ — $ 2,054 |
Schedule of Amortized Cost and Fair Value of Investment Securities by Contractual Maturity | The amortized cost and fair value of available for sale and held to maturity debt securities as of September 30, 2022 by contractual maturity are shown below. Expected maturities of mortgage and other asset-backed securities may differ from contractual maturities because the mortgages and other assets underlying the obligations may be prepaid without penalty. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Due within one year $ 9,696 $ 9,991 $ 249 $ 254 Due after one year through five years 25,348 25,086 790 808 Due after five years through ten years 67,149 62,891 474 486 Due after ten years 188,942 163,177 — — CMO 16,057 15,291 — — ABS 561 569 — — SBA certificates 12,255 12,012 — — Mortgage-backed securities 30,786 27,500 45 45 $ 350,794 $ 316,517 $ 1,558 $ 1,593 |
Schedule of Investment Securities With Gross Unrealized Losses | Number of Gross Investment Fair Unrealized (Dollars in thousands) Positions Value Losses September 30, 2022: Securities available for sale: Continuous loss position less than twelve months: U.S. Treasury notes 7 $ 27,295 $ 3,514 Agency mortgage-backed 14 24,987 2,749 Agency CMO 12 8,896 551 Privately-issued CMO 2 424 20 SBA certificates 1 10,775 225 Municipal bonds 259 193,002 24,922 Total less than twelve months 295 265,379 31,981 Continuous loss position more than twelve months: Agency mortgage-backed 1 2,169 540 Agency CMO 2 1,199 190 Privately-issued CMO 1 19 9 Privately-issued ABS 1 283 8 SBA certificates 2 1,202 19 Municipal bonds 7 6,263 1,721 Total more than twelve months 14 11,135 2,487 Total securities available for sale 309 $ 276,514 $ 34,468 September 30, 2021: Securities available for sale: Continuous loss position less than twelve months: Agency mortgage-backed 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 |
Summary of Reported Gross Gains And Losses On Sales Of Available For Sale Securities | The following is a summary of the reported gross gains and losses on sales of available for sale securities and time deposits for the years ended September 30, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Gross realized gains on sales $ 488 $ — $ 17 Gross realized losses on sales (12) — (10) Net realized gain on sales of available for sale securities and time deposits $ 476 $ — $ 7 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Loans and Allowance for Loan Losses | |
Schedule of loans | (In thousands) 2022 2021 Real estate mortgage: 1-4 family residential $ 368,211 $ 241,425 Commercial 169,861 149,600 Single tenant net lease 636,578 403,692 SBA 59,379 62,805 Multifamily residential 32,411 40,324 Residential construction 18,261 8,330 Commercial construction 5,938 2,717 Land and land development 11,880 10,217 Commercial business 90,010 59,883 SBA commercial business (1) 20,282 80,400 Consumer 38,052 30,563 Total loans 1,450,863 1,089,956 Deferred loan origination fees and costs, net (2) 1,052 281 Allowance for loan losses (15,360) (14,301) Loans, net $ 1,436,555 $ 1,075,936 (1) Includes $650,000 and $56.7 million of PPP loans at September 30, 2022 and 2021, respectively. (2) Includes $11,000 and $757,000 of net deferred loan fees related to PPP loans at September 30, 2022 and 2021, respectively. |
Summary of activity for related party loans | (In thousands) 2022 2021 Beginning balance $ 5,975 $ 7,716 New loans and advances 5,022 4,832 Repayments (2,531) (2,601) Loans sold (191) (2,992) Reclassifications due to officer and director changes (619) (980) Ending balance $ 7,656 $ 5,975 |
Schedule of components of recorded investment in loans | The following tables provide the components of the recorded investment in loans as of September 30, 2022: Principal Accrued Net Deferred Recorded Loan Interest Loan Origination Investment Recorded Investment in Loans: Balance Receivable Fees and Costs in Loans (In thousands) Residential real estate $ 368,211 $ 1,701 $ 136 $ 370,048 Commercial real estate 169,861 533 (304) 170,090 Single tenant net lease 636,578 1,979 47 638,604 SBA commercial real estate 59,379 486 1,108 60,973 Multifamily 32,411 62 (40) 32,433 Residential construction 18,261 27 (89) 18,199 Commercial construction 5,938 11 (25) 5,924 Land and land development 11,880 18 26 11,872 Commercial business 90,010 278 48 90,336 SBA commercial business 20,282 163 218 20,663 Consumer 38,052 121 21 38,152 $ 1,450,863 $ 5,379 $ 1,052 $ 1,457,294 (4 – continued) 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 $ 2,248 $ 367,800 $ 370,048 Commercial real estate 907 169,183 170,090 Single tenant net lease — 638,604 638,604 SBA commercial real estate 7,725 53,248 60,973 Multifamily 354 32,079 32,433 Residential construction — 18,199 18,199 Commercial construction — 5,924 5,924 Land and land development — 11,872 11,872 Commercial business 1,007 89,329 90,336 SBA commercial business 1,091 16,572 20,663 Consumer 238 37,914 38,152 $ 13,570 $ 1,443,724 $ 1,457,294 The following tables provide 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) 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 (4 – continued) 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 allowance for loan losses | The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of September 30, 2022 and 2021: Individually Collectively Evaluated for Evaluated for Ending Impairment Impairment Balance (In thousands) 2022: Residential real estate $ — $ 2,716 $ 2,716 Commercial real estate — 1,590 1,590 Single tenant net lease — 3,838 3,838 SBA commercial real estate 290 2,288 2,578 Multifamily — 251 251 Residential construction — 305 305 Commercial construction — 107 107 Land and land development — 212 212 Commercial business — 1,193 1,193 SBA commercial business 674 1,448 2,122 Consumer — 448 448 $ 964 $ 14,396 $ 15,360 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 years ended September 30, 2022 and 2021: Beginning Provisions Ending Balance (Credits) Charge-Offs Recoveries Balance (In thousands) 2022: Residential real estate $ 1,438 $ 1,287 $ (23) $ 14 $ 2,716 Commercial real estate 2,806 (1,216) — — 1,590 Single tenant net lease 2,422 1,416 — — 3,838 SBA commercial real estate 3,475 (802) (110) 15 2,578 Multifamily 518 (267) — — 251 Residential construction 191 114 — — 305 Commercial construction 63 44 — — 107 Land and land development 235 (23) — — 212 Commercial business 1,284 (119) (91) 119 1,193 SBA commercial business 1,346 1,413 (698) 61 2,122 Consumer 523 61 (175) 39 448 $ 14,301 $ 1,908 $ (1,097) $ 248 $ 15,360 2021: Residential real estate $ 1,255 $ 170 $ (11) $ 24 $ 1,438 Commercial real estate 3,058 (252) — — 2,806 Single tenant net lease 3,017 (595) — — 2,422 SBA commercial real estate 4,154 234 (936) 23 3,475 Multifamily 772 (254) — — 518 Residential construction 243 (52) — — 191 Commercial construction 181 (118) — — 63 Land and land development 243 (8) — — 235 Commercial business 1,449 (170) — 5 1,284 SBA commercial business 1,539 (211) (21) 39 1,346 Consumer 1,115 (511) (156) 75 523 $ 17,026 $ (1,767) $ (1,124) $ 166 $ 14,301 The following table presents the activity in the allowance for loan losses by portfolio segment for the year ended September 30, 2020: Beginning Provisions Balance (Credits) Charge-Offs Recoveries Ending Balance (In thousands) 2020: Residential real estate $ 317 $ 945 $ (36) $ 29 $ 1,255 Commercial real estate 2,540 614 (102) 6 3,058 Single tenant net lease 1,675 1,342 — — 3,017 SBA commercial real estate 2,293 2,175 (360) 46 4,154 Multifamily 478 294 — — 772 Residential construction 248 (5) — — 243 Commercial construction 67 114 — — 181 Land and land development 209 28 — 6 243 Commercial business 889 567 (38) 31 1,449 SBA commercial business 750 1,109 (396) 76 1,539 Consumer 574 779 (238) — 1,115 $ 10,040 $ 7,962 $ (1,170) $ 194 $ 17,026 |
Schedule of impaired loans individually evaluated for impairment | (4 – continued) The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2022. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended September 30, 2022. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 2,248 $ 2,524 $ — $ 2,978 $ 45 Commercial real estate 907 982 — 1,038 21 Single tenant net lease — — — — — SBA commercial real estate 5,337 5,952 — 7,235 — Multifamily 354 398 — 415 6 Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business 1,007 1,189 — 1,318 19 SBA commercial business 221 532 — 412 — Consumer 93 81 — 91 1 $ 10,167 $ 11,658 $ — $ 13,487 $ 92 Loans with an allowance recorded: Residential real estate $ — $ — $ — $ 206 $ — Commercial real estate — — — — — Single tenant net lease — — — — — SBA commercial real estate 2,388 2,919 290 2,213 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business — — — — — SBA commercial business 870 1,349 674 802 — Consumer 145 145 — 146 — $ 3,403 $ 4,413 $ 964 $ 3,367 $ — Total: Residential real estate $ 2,248 $ 2,524 $ — $ 3,184 $ 45 Commercial real estate 907 982 — 1,038 21 Single tenant net lease — — — — — SBA commercial real estate 7,725 8,871 290 9,448 — Multifamily 354 398 — 415 6 Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business 1,007 1,189 — 1,318 19 SBA commercial business 1,091 1,881 674 1,214 — Consumer 238 226 — 237 1 $ 13,570 $ 16,071 $ 964 $ 16,854 $ 92 (4 – continued) The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2021. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended September 30, 2021. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 3,002 $ 3,551 $ — $ 4,383 $ 68 Commercial real estate 1,021 1,092 — 1,148 29 Single tenant net lease — — — — — SBA commercial real estate 8,184 8,873 — 4,738 — Multifamily 482 539 — 638 — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — 1 — Commercial business 1,476 1,559 — 1,664 3 SBA commercial business 1,278 1,534 — 820 — Consumer 103 97 — 90 2 $ 15,546 $ 17,245 $ — $ 13,482 $ 102 Loans with an allowance recorded: Residential real estate $ 65 $ 65 $ — $ 108 $ — Commercial real estate — — — — — Single tenant net lease — — — — — SBA commercial real estate 969 1,394 114 3,389 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business — — — 1 — SBA commercial business 18 21 18 248 — Consumer 145 144 1 169 — $ 1,197 $ 1,624 $ 133 $ 3,915 $ — Total: Residential real estate $ 3,067 $ 3,616 $ — $ 4,491 $ 68 Commercial real estate 1,021 1,092 — 1,148 29 Single tenant net lease — — — — — SBA commercial real estate 9,153 10,267 114 8,127 — Multifamily 482 539 — 638 — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — 1 — Commercial business 1,476 1,559 — 1,665 3 SBA commercial business 1,296 1,555 18 1,068 — Consumer 248 241 1 259 2 $ 16,743 $ 18,869 $ 133 $ 17,397 $ 102 (4 – continued) The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2020. The Company did not recognize any interest income on impaired loans using the cash receipts method of accounting for the year ended September 30, 2020. Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 5,185 $ 5,697 $ — $ 5,411 $ 127 Commercial real estate 1,134 1,185 — 3,914 167 Single tenant net lease — — — — — SBA commercial real estate 1,245 1,178 — 586 — Multifamily 698 700 — 421 — Residential construction — — — — — Commercial construction — — — — — Land and land development 2 1 — 1 — Commercial business 1,670 1,675 — 745 1 SBA commercial business 322 416 — 250 — Consumer 61 63 — 72 3 $ 10,317 $ 10,915 $ — $ 11,400 $ 298 Loans with an allowance recorded: Residential real estate $ 174 $ 175 $ 30 $ 59 $ — Commercial real estate — — — 20 — Single tenant net lease — — — — — SBA commercial real estate 5,682 6,086 1,366 5,048 — Multifamily — — — — — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business — — — 328 — SBA commercial business 373 399 47 143 — Consumer 138 138 — 154 — $ 6,367 $ 6,798 $ 1,443 $ 5,752 $ — Total: Residential real estate $ 5,359 $ 5,872 $ 30 $ 5,470 $ 127 Commercial real estate 1,134 1,185 — 3,934 167 Single tenant net lease — — — — — SBA commercial real estate 6,927 7,264 1,366 5,634 — Multifamily 698 700 — 421 — Residential construction — — — — — Commercial construction — — — — — Land and land development 2 1 — 1 — Commercial business 1,670 1,675 — 1,073 1 SBA commercial business 695 815 47 393 — Consumer 199 201 — 226 3 $ 16,684 $ 17,713 $ 1,443 $ 17,152 $ 298 |
Schedule of nonperforming loans | At September 30, 2022 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 $ 1,213 $ — $ 1,213 $ 1,894 $ — $ 1,894 Commercial real estate 516 — 516 599 — 599 Single tenant net lease — — — — — — SBA commercial real estate 7,725 — 7,725 9,153 472 9,625 Multifamily — — — 482 — 482 Residential construction — — — — — — Commercial construction — — — — — — Land and land development — — — — — — Commercial business 73 — 73 1,370 — 1,370 SBA commercial business 1,091 — 1,091 1,296 — 1,296 Consumer 238 — 238 206 — 206 Total $ 10,856 $ — $ 10,856 $ 15,000 $ 472 $ 15,472 |
Schedule of aging of recorded investment in past due loans | 30-59 Days 60-89 Days 90+ Days Total Total Past Due Past Due Past Due Past Due Current Loans (In thousands) Residential real estate $ 1,169 $ 53 $ 204 $ 1,426 $ 368,622 $ 370,048 Commercial real estate — — 516 516 169,574 170,090 Single tenant net lease — — — — 638,604 638,604 SBA commercial real estate — — 3,370 3,370 57,603 60,973 Multifamily — — — — 32,433 32,433 Residential construction — — — — 18,199 18,199 Commercial construction — — — — 5,924 5,924 Land and land development — — — — 11,872 11,872 Commercial business — — 73 73 90,263 90,336 SBA commercial business 231 — 237 468 20,195 20,663 Consumer 95 — 58 153 37,999 38,152 Total $ 1,495 $ 53 $ 4,458 $ 6,006 $ 1,451,288 $ 1,457,294 (4 – continued) 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 September 30, 2022: Pass Mention Substandard Doubtful Loss Total (In thousands) Residential real estate $ 368,377 $ — $ 1,501 $ 170 $ — $ 370,048 Commercial real estate 169,363 — 727 — — 170,090 Single tenant net lease 638,604 — — — — 638,604 SBA commercial real estate 51,053 1,143 7,112 1,665 — 60,973 Multifamily 32,433 — — — — 32,433 Residential construction 18,199 — — — — 18,199 Commercial construction 5,924 — — — — 5,924 Land and land development 11,872 — — — — 11,872 Commercial business 90,001 250 85 — — 90,336 SBA commercial business 17,583 284 2,755 41 — 20,663 Consumer 38,059 — 93 — — 38,152 Total $ 1,441,468 $ 1,677 $ 12,273 $ 1,876 $ — $ 1,457,294 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 information regarding TDRs that were restructured | Accruing Nonaccrual Total (In thousands) September 30, 2022: Residential real estate $ 1,035 $ — $ 1,035 Commercial real estate 391 430 821 SBA commercial real estate - 1,627 1,627 Multifamily 354 — 354 Commercial business 934 — 934 SBA commercial business - 273 273 Total $ 2,714 $ 2,330 $ 5,044 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 |
Schedule of Troubled Debt Restructurings | Pre- Post- Modification Modification Number of Principal Principal Loans Balance Balance (Dollars in thousands) September 30, 2022: SBA commercial business 1 $ 397 $ 397 Total 1 $ 397 $ 397 September 30, 2021: Commercial business 1 $ 126 $ 126 Total 1 $ 126 $ 126 September 30, 2020: Residential real estate 1 $ 1,099 $ 1,100 SBA commercial real estate 1 3,832 3,832 Multifamily 2 700 700 Commercial business 9 1,737 1,737 Total 13 $ 7,368 $ 7,369 |
Schedule of loan servicing fees | (In thousands) 2022 2021 2020 Late fees and ancillary fees earned $ 93 $ 88 $ 54 Net servicing income 2,425 2,171 1,806 SBA net servicing fees $ 2,518 $ 2,259 $ 1,860 |
Schedule of valuation allowance for impairment of recognized servicing assets | An analysis of the valuation allowance related to SBA loan servicing rights for the years ended September 30, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 Balance as of October 1 $ 6 $ 32 $ 148 Additions (reductions) charged to earnings 216 66 (116) Write-downs charged against allowance (43) (92) — Balance as of September 30 $ 179 $ 6 $ 32 |
SBA Loan Servicing Rights [Member] | |
Loans and Allowance for Loan Losses | |
Schedule of key assumptions used to estimate the fair value | Range of Assumption (Weighted Average) Assumption 2022 2021 Discount rate 6.90% to 25.00% (12.71%) 4.57% to 22.34% (9.97%) Prepayment rate 7.08% to 29.26% (15.27%) 8.30% to 24.51% (15.98%) |
Schedule of loan servicing fees | (In thousands) 2022 2021 2020 Balance as of October 1 $ 4,447 $ 3,748 $ 3,030 Servicing rights capitalized 846 1,980 1,450 Amortization (1,287) (1,215) (848) Direct write-offs (43) (92) — Change in valuation allowance (173) 26 116 Balance as of September 30 $ 3,790 $ 4,447 $ 3,748 |
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 years ended September 30, 2022, 2021 and 2020 were as follows: (In thousands) 2022 2021 2020 Fair value as of October 1 $ 49,579 $ 21,703 $ 934 Servicing rights capitalized 11,161 36,679 24,058 Changes in fair value related to: Loan repayments (7,539) (9,555) (1,542) Changes in valuation model inputs or assumptions 10,062 752 (1,747) Fair value as of September 30 $ 63,263 $ 49,579 $ 21,703 |
Schedule of key assumptions used to estimate the fair value | Range of Assumption (Weighted Average) Assumption 2022 2021 Discount rate 9.50% to 14.50% (9.51%) 8.50% to 10.00% (8.51%) Prepayment rate 6.01% to 74.89% (6.63%) 6.04% to 43.27% (10.00%) |
Nonresidential MSR | |
Loans and Allowance for Loan Losses | |
Schedule of loan servicing fees | An analysis of nonresidential MSRs for 2022 is as follows: 2022 (In thousands) Balance, beginning of year $ — Servicing rights capitalized 160 Amortization (19) Direct write-offs — Change in valuation allowance — Balance, end of year $ 141 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | (In thousands) 2022 2021 Land and land improvements $ 5,328 $ 4,561 Office buildings 23,942 23,826 Leasehold improvements 66 66 Furniture, fixtures and equipment 9,187 9,206 Construction in progress 749 400 39,272 38,059 Less: accumulated depreciation (12,172) (10,390) Totals $ 27,100 $ 27,669 (In thousands) 2022 2021 2020 Depreciation expense $ 2,125 $ 2,023 $ 1,576 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
OTHER REAL ESTATE OWNED | |
Other Real Estate, Roll Forward | (In thousands) 2022 2021 2020 Balance as of October 1 $ 1,728 $ 1,728 $ 1,893 Transfers from loans to OREO — 426 — Transfers from OREO to premises and equipment (721) — — Sales (804) (426) (165) Balance as of September 30 $ 203 $ 1,728 $ 1,728 |
Schedule Of Gain Loss On Other Real Estate Owned | (In thousands) 2022 2021 2020 Net (gain)/loss on sales $ 115 $ (74) $ (16) Operating expenses, net of rental income — 10 15 $ 115 $ (64) $ (1) |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
GOODWILL AND OTHER INTANGIBLES | |
Changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended September 30, 2022, 2021 and 2020 are summarized as follows: (In thousands) 2022 2021 2020 Beginning balance $ 9,848 $ 9,848 $ 9,848 Acquisition of Dearmin/FNBO — — — Ending balance $ 9,848 $ 9,848 $ 9,848 |
Summary of other intangible assets | (In thousands) 2022 2021 Core deposit intangible acquired in Community First acquisition $ 2,741 $ 2,741 Core deposit intangible acquired in First Federal branch acquisition 566 566 Core deposit intangible acquired in Dearmin/FNBO acquisition 1,487 1,487 Less accumulated amortization (4,019) (3,806) Ending balance $ 775 $ 988 |
Schedule of intangible assets amortization expenses | Amortization expense on intangibles for the years ended September 30, 2022, 2021 and 2020 is summarized as follows: (In thousands) 2022 2021 2020 Amortization expense $ 214 $ 214 $ 214 |
Estimated amortization expense for the core deposit intangibles | Years ending September 30: (In thousands) 2023 $ 214 2024 163 2025 163 2026 163 2027 72 Total $ 775 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Deposits | |
Schedule of deposits | Deposits at September 30, 2022 and 2021 consisted of the following: (In thousands) 2022 2021 Noninterest-bearing demand deposits $ 340,172 $ 291,039 NOW accounts 343,296 315,169 Money market accounts 238,219 222,972 Savings accounts 171,779 162,033 Retail time deposits 129,864 136,309 Brokered and reciprocal certificates of deposit 292,504 100,058 Total $ 1,515,834 $ 1,227,580 |
Schedule Of Maturities Of Certificates Of Deposit | At September 30, 2022, scheduled maturities of time deposits were as follows: Years ending September 30: (In thousands) 2023 $ 368,081 2024 28,960 2025 8,213 2026 6,868 2027 10,246 Total $ 422,368 |
BORROWINGS FROM FEDERAL HOME _2
BORROWINGS FROM FEDERAL HOME LOAN BANK (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
BORROWINGS FROM FEDERAL HOME LOAN BANK | |
Borrowings from the FHLB | At September 30, 2022 and 2021 borrowings from the FHLB were as follows: 2022 2021 Weighted Weighted Average Average (Dollars in thousands) Rate Amount Rate Amount Advances maturing in: 2022 — % $ — 2.01 $ 10,000 2023 3.00 130,000 — — 2024 — — 2.02 50,000 2025 1.51 10,000 1.51 10,000 2026 1.13 20,000 1.13 20,000 2027 and beyond 1.27 135,000 0.77 160,000 Total advances 295,000 250,000 Line of credit balance 3.45 12,303 0.43 — Total borrowings from FHLB $ 307,303 $ 250,000 |
DEFERRED COMPENSATION PLANS (Ta
DEFERRED COMPENSATION PLANS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Officer | |
DEFERRED COMPENSATION PLANS | |
Schedule of deferred compensation expense | Deferred compensation expense for the years ended September 30, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 Deferred compensation expense (income) $ 164 $ 129 $ (4) |
Director | |
DEFERRED COMPENSATION PLANS | |
Schedule of deferred compensation expense | Deferred directors’ fees expense for the years ended September 30, 2022, 2021 and 2020 were as follows: (In thousands) 2022 2021 2020 Deferred directors’ fee expense $ 202 $ 166 $ 187 |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
BENEFIT PLANS | |
Schedule of defined contributions to the plan | Company contributions to the plan for the years ended September 30, 2022, 2021 and 2020 were as follows: (In thousands) 2022 2021 2020 Company contributions to the plan $ 1,366 $ 1,633 $ 1,420 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
STOCK-BASED COMPENSATION PLANS | |
Schedule stock based compensation expense related to stock options and restricted stock | Stock based compensation expense related to stock options and restricted stock for the years ended September 30, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 Stock option expense $ 296 $ 92 $ 86 Restricted stock expense 391 184 193 |
Schedule of fair value of options granted | The fair value of options granted during the year ended September 30, 2022 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 The fair value of options granted during the years ended September 30, 2021 and 2020 was determined using the following assumptions: Expected dividend yield 1.75 % Risk-free interest rate 2.13 % Expected volatility 14.6 % Expected life of options 7.5 years Weighted average fair value at grant date $ 6.13 |
Schedule of stock option activity | A summary of stock option activity as of September 30, 2022, and changes during the year then ended is presented below. Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term (Years) Value Outstanding at beginning of year 217,074 $ 16.58 Granted 137,250 26.72 Exercised (2,955) 13.36 Forfeited or expired — — Outstanding at end of year 351,369 $ 20.57 6.8 $ 1,566,000 Vested and expected to vest 351,369 $ 20.57 6.8 $ 1,566,000 Exercisable at end of year 168,344 $ 15.28 4.7 $ 1,458,000 |
Schedule of nonvested restricted shares activity | A summary of the Company’s nonvested restricted shares activity as of September 30, 2022 and changes during the year 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 September 30, 2022 51,324 $ 26.07 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
INCOME TAXES | |
Schedule of components of income tax expense | (In thousands) 2022 2021 2020 Current $ 283 $ 2,166 $ 8,295 Valuation allowance (78) (34) 193 Deferred 2,173 7,865 4,173 Income tax expense $ 2,378 $ 9,997 $ 12,661 |
Schedule of reconciliation of income tax expense | The reconciliation of income tax expense with the amount which would have been provided at the federal statutory rate of 21% for the years ended September 30, 2022, 2021 and 2020 follows: (In thousands) 2022 2021 2020 Provision at federal statutory rate $ 3,953 $ 8,308 $ 9,816 State income tax-net of federal tax benefit 297 901 1,815 Tax-exempt interest income (1,314) (1,045) (962) Bank owned life insurance (209) (194) (154) Captive insurance net premiums (375) (303) (295) Increase (decrease) in federal deferred tax valuation allowance (78) (20) 193 Nondeductible officer compensation — 2,238 2,373 Other 104 112 (125) Income tax expense $ 2,378 $ 9,997 $ 12,661 |
Schedule of deferred tax assets and liabilities | Significant components of deferred tax assets and liabilities at September 30, 2022 and 2021 are as follows: (In thousands) 2022 2021 Deferred tax assets: Allowance for loan losses $ 3,719 $ 3,460 Operating lease liability 1,100 1,430 Deferred compensation plans 475 426 Equity incentive plans 117 45 Other-than-temporary impairment loss on available for sale securities 17 20 Interest on nonaccrual loans 165 236 Loss on tax credit investments 1,638 1,640 Unrealized loss on securities available for sale 7,198 — Net operating loss carryforwards 400 — Mark to market adjustments 514 817 Other 1,246 278 Gross deferred tax assets 16,589 8,352 Valuation allowance (1,570) (1,648) Net deferred tax assets 15,019 6,704 Deferred tax liabilities: Unrealized gain on securities available for sale — (2,366) Accumulated depreciation (2,099) (2,014) Operating lease right of use asset (1,069) (1,403) Installment sale (349) (360) Acquisition purchase accounting adjustments (1,284) (853) Mortgage servicing rights (15,498) (12,336) FHLB stock dividends (71) (85) Prepaid expenses (776) (829) Deferred loan fees and costs, net (180) (239) Other (101) (96) Deferred tax liabilities (21,427) (20,581) Net deferred tax liability $ (6,408) $ (13,877) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
LEASES | |
Schedule of components of lease | (In thousands) 2022 2021 2020 Operating lease cost $ 621 $ 1,204 $ 1,294 Short-term lease cost 501 836 644 $ 1,122 $ 2,040 $ 1,938 |
Schedule of future minimum commitments due under the lease agreements | Years ending September 30: (In thousands) 2023 $ 412 2024 324 2025 228 2026 203 2027 211 Thereafter 4,991 Total lease payments 6,369 Less imputed interest (1,815) Total $ 4,554 |
Schedule of lease term and discount rate | 2022 2021 Weighted-average remaining lease term (years) 23.7 21.5 Weighted-average discount rate 2.89 % 2.53 % |
Schedule of supplemental cash flow information related to leases | (In thousands) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 607 $ 1,253 $ 1,221 ROU assets obtained in exchange for lease obligations: Operating leases 275 2,038 9,083 |
Schedule of lessor future minimum lease payments | Years ending September 30: (In thousands) 2023 $ 469 2024 469 2025 354 2026 8 2027 8 2028 and thereafter 5 Total $ 1,313 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Commitments to extend credit | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of Fair Value, Off-balance sheet risks | The following is a summary of the commitments to extend credit at September 30, 2022 and 2021. Interest rate lock commitments that meet the definition of a derivative are excluded from these totals. (In thousands) 2022 2021 Loan commitments: Fixed rate $ 53,692 $ 49,722 Adjustable rate 71,167 28,137 Guarantees of third-party revolving credit 286 177 Undisbursed portion of home equity lines of credit 105,208 35,995 Undisbursed portion of commercial and personal lines of credit 52,146 47,452 Undisbursed portion of construction loans in process 45,265 31,323 Total commitments to extend credit $ 327,764 $ 192,806 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of derivative financial instruments | September 30, 2022: Notional Asset Liability (In thousands) Amount Derivatives Derivatives Interest rate lock commitments $ 48,952 $ 158 $ 396 Forward mortgage loan sale contracts 60,000 872 31 $ 108,952 $ 1,030 $ 427 September 30, 2021: Notional Asset Liability (In thousands) Amount Derivatives Derivatives Interest rate lock commitments $ 331,178 $ 2,167 $ 600 Forward mortgage loan sale contracts 291,750 1,465 35 $ 622,928 $ 3,632 $ 635 |
Schedule of Income (loss) related to derivative financial instruments | (In thousands) 2022 2021 2020 Interest rate lock commitments $ (1,805) $ (13,370) $ 11,668 Forward mortgage loan sale contracts 20,398 4,140 (22,412) $ 18,593 $ (9,230) $ (10,744) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis | Carrying Value (In thousands) Level 1 Level 2 Level 3 Total September 30, 2022: Assets Measured – Recurring Basis Securities available for sale: U.S. Treasury notes $ — $ 27,295 $ — $ 27,295 Agency mortgage-backed — 27,500 — 27,500 Agency CMO — 14,821 — 14,821 Privately-issued CMO — 470 — 470 Privately-issued ABS — 569 — 569 SBA certificates — 12,012 — 12,012 Municipal bonds — 233,850 — 233,850 Total securities available for sale $ — $ 316,517 $ — $ 316,517 Residential mortgage loans held for sale – fair value option elected $ — $ 38,579 $ — $ 38,579 Derivative assets (included in other assets) $ — $ 872 $ 158 $ 1,030 Equity securities (included in other assets) $ 103 $ — $ — $ 103 Residential mortgage servicing rights $ — $ — $ 63,263 $ 63,263 Liabilities Measured – Recurring Basis Derivative liabilities (included in other liabilities) $ — $ 31 $ 396 $ 427 Assets Measured – Nonrecurring Basis Impaired loans: Residential real estate $ — $ — $ — $ — Commercial real estate — — — — SBA commercial real estate — — 2,574 2,574 Multifamily — — — — Commercial business — — 46 46 SBA commercial business — — 290 290 Consumer — — — — Total impaired loans $ — $ — $ 2,910 $ 2,910 SBA loan servicing rights $ — $ — $ 3,790 $ 3,790 Carrying Value (In thousands) Level 1 Level 2 Level 3 Total September 30, 2021: Assets Measured – Recurring Basis Securities available for sale: U.S. Treasury bills $ — $ 250 $ — $ 250 Agency mortgage-backed — 8,384 — 8,384 Agency CMO — 13,530 — 13,530 Privately-issued CMO — 803 — 803 Privately-issued ABS — 772 — 772 SBA certificates — 2,138 — 2,138 Municipal bonds — 180,804 — 180,804 Total securities available for sale $ — $ 206,681 $ — $ 206,681 Residential mortgage loans held for sale – fair value option elected $ — $ 167,813 $ — $ 167,813 Derivative assets (included in other assets) $ — $ 1,465 $ 2,167 $ 3,632 Equity securities (included in other assets) $ 112 $ — $ — $ 112 Residential mortgage servicing rights $ — $ — $ 49,579 $ 49,579 Liabilities Measured – Recurring Basis Derivative liabilities (included in other liabilities) $ — $ 35 $ 600 $ 635 Assets Measured – Nonrecurring Basis Impaired loans: Residential real estate $ — $ — $ 71 $ 71 Commercial real estate — — — — SBA commercial real estate — — 4,169 4,169 Multifamily — — — — Commercial business — — — — SBA commercial business — — — — Consumer — — 8 8 Total impaired loans $ — $ — $ 4,248 $ 4,248 SBA loan servicing rights $ — $ — $ 1,184 $ 1,184 |
Schedule of reconciliation of derivative assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The table below presents a reconciliation of derivative assets and liabilities (interest rate lock commitments) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended September 30, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Beginning balance $ 1,567 $ 14,937 $ 3,269 Unrealized gains (losses) recognized in earnings, net of settlements (1,805) (13,370) 11,668 Ending balance $ (238) $ 1,567 $ 14,937 |
Schedule of significant unobservable inputs (Level 3) used in the valuation of derivative financial instruments measured at fair value on a recurring basis | The table below presents information about significant unobservable inputs (Level 3) used in the valuation of derivative financial instruments measured at fair value on a recurring basis as of September 30, 2022 and 2021. 2022 Range 2021 Range Significant of Inputs of Inputs Unobservable (Weighted (Weighted Financial Instrument Inputs Average) Average) Interest rate lock commitments Pull-through rate 50% - 100% (78%) 58% - 100% (83%) Direct costs to close 0.00% - 4.00% (0.70%) 0.37% - 1.74% (0.86%) |
Summary of reconciliation of MSRs measured at fair value on a recurring basis using significant unobservable inputs | The table below presents a reconciliation of residential MSRs measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended September 30, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Beginning balance $ 49,579 $ 21,703 $ 934 Issuances (loans sold with servicing retained) 11,161 36,679 24,058 Net settlements (7,539) (9,555) (1,542) Unrealized gains (losses) included in earnings 10,062 752 (1,747) Ending balance $ 63,263 $ 49,579 $ 21,703 |
Summary of significant unobservable (Level 3) inputs of MSRs measured fair value on recurring basis | The table below presents information about significant unobservable inputs (Level 3) used in the valuation of residential MSRs measured at fair value on a recurring basis as of September 30, 2022 and 2021. Significant 2022 2021 Unobservable Range of Inputs Range of Inputs Financial Instrument Inputs (Weighted Average) (Weighted Average) Residential MSRs Discount rate 9.50% - 14.50% (9.51%) 8.50% - 10.00% (8.51%) Prepayment rate 6.01% - 74.89% (6.63%) 6.04% - 43.27% (10.00%) |
Schedule of Provisions for loan losses recognized for impaired loans | The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of September 30, 2022 and 2021: Individually Collectively Evaluated for Evaluated for Ending Impairment Impairment Balance (In thousands) 2022: Residential real estate $ — $ 2,716 $ 2,716 Commercial real estate — 1,590 1,590 Single tenant net lease — 3,838 3,838 SBA commercial real estate 290 2,288 2,578 Multifamily — 251 251 Residential construction — 305 305 Commercial construction — 107 107 Land and land development — 212 212 Commercial business — 1,193 1,193 SBA commercial business 674 1,448 2,122 Consumer — 448 448 $ 964 $ 14,396 $ 15,360 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 years ended September 30, 2022 and 2021: Beginning Provisions Ending Balance (Credits) Charge-Offs Recoveries Balance (In thousands) 2022: Residential real estate $ 1,438 $ 1,287 $ (23) $ 14 $ 2,716 Commercial real estate 2,806 (1,216) — — 1,590 Single tenant net lease 2,422 1,416 — — 3,838 SBA commercial real estate 3,475 (802) (110) 15 2,578 Multifamily 518 (267) — — 251 Residential construction 191 114 — — 305 Commercial construction 63 44 — — 107 Land and land development 235 (23) — — 212 Commercial business 1,284 (119) (91) 119 1,193 SBA commercial business 1,346 1,413 (698) 61 2,122 Consumer 523 61 (175) 39 448 $ 14,301 $ 1,908 $ (1,097) $ 248 $ 15,360 2021: Residential real estate $ 1,255 $ 170 $ (11) $ 24 $ 1,438 Commercial real estate 3,058 (252) — — 2,806 Single tenant net lease 3,017 (595) — — 2,422 SBA commercial real estate 4,154 234 (936) 23 3,475 Multifamily 772 (254) — — 518 Residential construction 243 (52) — — 191 Commercial construction 181 (118) — — 63 Land and land development 243 (8) — — 235 Commercial business 1,449 (170) — 5 1,284 SBA commercial business 1,539 (211) (21) 39 1,346 Consumer 1,115 (511) (156) 75 523 $ 17,026 $ (1,767) $ (1,124) $ 166 $ 14,301 The following table presents the activity in the allowance for loan losses by portfolio segment for the year ended September 30, 2020: Beginning Provisions Balance (Credits) Charge-Offs Recoveries Ending Balance (In thousands) 2020: Residential real estate $ 317 $ 945 $ (36) $ 29 $ 1,255 Commercial real estate 2,540 614 (102) 6 3,058 Single tenant net lease 1,675 1,342 — — 3,017 SBA commercial real estate 2,293 2,175 (360) 46 4,154 Multifamily 478 294 — — 772 Residential construction 248 (5) — — 243 Commercial construction 67 114 — — 181 Land and land development 209 28 — 6 243 Commercial business 889 567 (38) 31 1,449 SBA commercial business 750 1,109 (396) 76 1,539 Consumer 574 779 (238) — 1,115 $ 10,040 $ 7,962 $ (1,170) $ 194 $ 17,026 |
Schedule of Impairment Charges to Write Down SBA Loan Servicing Rights at Fair Value | Impairment charges to write down SBA loan servicing rights to fair value for the years ended September 30, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 Charges (reductions) to write down SBA loan servicing rights $ 216 $ 66 $ (116) |
Schedule of aggregate fair value and the aggregate remaining principal balance for residential mortgage loans held for sale | Aggregate September 30, 2022: Aggregate Principal (In thousands) Fair Value Balance Difference Residential mortgage loans held for sale $ 38,579 $ 38,517 $ 62 Aggregate September 30, 2021: Aggregate Principal (In thousands) Fair Value Balance 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 years ended September 30, 2022, 2021 and 2020: (In thousands) 2022 2021 2020 Gains (losses) – included in mortgage banking income $ (385) $ 2,017 $ 7,504 Interest income 3,989 5,695 5,026 $ 3,604 $ 7,712 $ 12,530 |
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 | Carrying Fair Value Measurements Using: (In thousands) Amount Level 1 Level 2 Level 3 September 30, 2022: Financial assets: Cash and due from banks $ 18,312 $ 18,312 $ — $ — Interest-bearing deposits with banks 23,353 23,353 — — Interest-bearing time deposits 1,613 — 1,613 — Securities available for sale 316,517 — 316,517 — Securities held to maturity 1,558 — 1,593 — Residential mortgage loans held for sale 38,579 — 38,579 — SBA loans held for sale 21,883 — 24,010 — Loans, net 1,436,555 — — 1,366,096 FRB and FHLB stock 20,004 N/A N/A N/A Accrued interest receivable 8,332 — 8,332 — SBA loan servicing rights 3,790 — — 3,790 Residential mortgage loan servicing rights 63,263 — — 63,263 Nonresidential mortgage loan servicing rights 141 — — 141 Derivative assets (included in other assets) 1,030 — 872 158 Equity securities (included in other assets) 103 103 — — Financial liabilities: Deposits 1,515,834 — — 1,510,792 Borrowings from FHLB 307,303 — 302,090 — Subordinated note 50,217 — 48,685 — Accrued interest payable 1,302 — 1,302 — Advance payments by borrowers for taxes and insurance 1,207 — 1,207 — Derivative liabilities (included in other liabilities) 427 — 31 396 Carrying Fair Value Measurements Using: (In thousands) Amount Level 1 Level 2 Level 3 September 30, 2021: Financial assets: Cash and due from banks $ 14,191 $ 14,191 $ — $ — Interest-bearing deposits with banks 19,237 19,237 — — Interest-bearing time deposits 2,222 — 2,222 — Securities available for sale 206,681 — 206,681 — Securities held to maturity 1,837 — 2,054 — Residential mortgage loans held for sale 167,813 — 167,813 — Single tenant net lease loans held for sale 23,020 — — 23,020 SBA loans held for sale 24,107 — 27,312 — Loans, net 1,075,936 — — 1,124,226 FRB and FHLB stock 19,258 N/A N/A N/A Accrued interest receivable 6,243 — 6,243 — SBA loan servicing rights 4,447 — — 4,646 Residential mortgage loan servicing rights 49,579 — — 49,579 Derivative assets (included in other assets) 3,632 — 1,465 2,167 Equity securities (included in other assets) 112 112 — — Financial liabilities: Deposits 1,227,580 — — 1,228,147 Borrowings from FHLB 250,000 — 251,877 — Subordinated note 19,865 — 21,083 — Accrued interest payable 258 — 258 — Advance payments by borrowers for taxes and insurance 2,076 — 2,076 — Derivative liabilities (included in other liabilities) 635 — 35 600 |
Impaired loans | |
FAIR VALUE MEASUREMENTS | |
Schedule of Provisions for loan losses recognized for impaired loans | Provisions for loan losses recognized for impaired loans for the years ended September 30, 2022, 2021 and 2020 is as follows: (In thousands) 2022 2021 2020 Provision for loan losses recognized $ 2,421 $ 381 $ 2,424 |
CAPITAL REQUIREMENTS AND REST_2
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS | |
Schedule of actual capital amounts and ratios | Minimum To Be Well Minimum Capitalized Under for Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2022: Total capital (to risk-weighted assets): Consolidated $ 226,283 12.65 % $ 143,088 8.00 % N/A N/A Bank 209,602 11.74 % 142,828 8.00 % $ 178,535 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 160,706 8.99 % $ 107,316 6.00 % N/A N/A Bank 194,242 10.88 % 107,121 6.00 % $ 142,828 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 160,706 8.99 % $ 80,487 4.50 % N/A N/A Bank 194,242 10.88 % 80,341 4.50 % $ 116,048 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 160,706 8.03 % $ 80,043 4.00 % N/A N/A Bank 194,242 9.64 % 80,565 4.00 % $ 100,706 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 % |
SUPPLEMENTAL DISCLOSURE FOR E_2
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE | |
Schedule of net income per share information | Years Ended September 30, (In thousands, except share and per share data) 2022 2021 2020 Basic: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 16,444 $ 29,567 $ 33,354 Shares: Weighted average common shares outstanding, basic 7,058,550 7,107,786 7,070,040 Net income per common share, basic $ 2.33 $ 4.16 $ 4.72 Diluted: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 16,444 $ 29,567 $ 33,354 Shares: Weighted average common shares outstanding, basic 7,058,550 7,107,786 7,070,040 Add: Dilutive effect of outstanding options 71,240 56,176 48,540 Add: Dilutive effect of restricted stock 12,056 9,771 9,282 Weighted average common shares outstanding, as adjusted 7,141,846 7,173,733 7,127,862 Net income per common share, diluted $ 2.30 $ 4.12 $ 4.68 |
PARENT COMPANY CONDENSED FINA_2
PARENT COMPANY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | |
Schedule of condensed balance sheet information | Balance Sheets As of September 30, (In thousands) 2022 2021 Assets: Cash and due from banks $ 16,940 $ 6,870 Other assets 1,164 755 Investment in subsidiaries 185,374 193,926 $ 203,478 $ 201,551 Liabilities and Equity: Subordinated notes $ 50,217 $ 19,865 Accrued expenses 638 1,309 Stockholders’ equity 152,623 180,377 $ 203,478 $ 201,551 |
Schedule of condensed income statement information | Statements of Income Years Ended September 30, (In thousands) 2022 2021 2020 Dividend income from subsidiaries $ 1,300 $ 5,175 $ 1,000 Interest expense (2,111) (1,274) (1,274) Other operating expenses (1,475) (1,076) (1,002) Income (loss) before income taxes and equity in undistributed net income of subsidiaries (2,286) 2,825 (1,276) Income tax benefit 795 504 598 Income (loss) before equity in undistributed net income of subsidiaries (1,491) 3,329 (678) Equity in undistributed net income of subsidiaries 17,935 26,238 34,032 Net income $ 16,444 $ 29,567 $ 33,354 |
Schedule of condensed cash flow statement information | Statements of Cash Flows Years Ended September 30, (In thousands) 2022 2021 2020 Operating Activities: Net income $ 16,444 $ 29,567 $ 33,354 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed net income of subsidiaries (17,935) (26,238) (34,032) Stock compensation expense 688 277 279 Net change in other assets and liabilities (93) 201 182 Net cash provided by (used in) operating activities (896) 3,807 (217) Investing Activities: Investment in bank subsidiary (10,000) — — Net cash used in investing activities (10,000) — — Financing Activities: Net proceeds from subordinated debt 30,258 — — Exercise of stock options — 27 148 Tax paid on stock award shares for employees (48) (41) (53) Purchase of treasury stock (4,745) — — Dividends paid (4,499) (1,685) (1,590) Net cash provided by (used in) financing activities 20,966 (1,699) (1,495) Net increase (decrease) in cash and due from banks 10,070 2,108 (1,712) Cash and due from banks at beginning of year 6,870 4,762 6,474 Cash and due from banks at end of year $ 16,940 $ 6,870 $ 4,762 |
SUPPLEMENTAL DISCLOSURE OF CA_2
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |
Schedule of supplemental disclosure of cash flow information | Years Ended September 30, (In thousands) 2022 2021 2020 Cash payments for: Interest $ 9,301 $ 8,517 $ 10,817 Income taxes (net of refunds received) (3,226) 9,051 3,971 Non-cash activities: Net transfers from loans to loans held for sale — 41,703 15,916 Net transfers from loans held for sale to loans 13,139 — — Transfers from loans to OREO — 426 — Proceeds from sales of OREO financed through loans — — — Cashless exercise of stock options 39 77 249 Transfers from OREO to premises and equipment 721 — — |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
Schedule of selected quarterly financial information | First Second Third Fourth (In thousands, except per share data) Quarter Quarter Quarter Quarter September 30, 2022: Interest income $ 15,762 $ 15,801 $ 18,479 $ 20,956 Interest expense 1,859 1,788 2,568 4,131 Net interest income 13,903 14,013 15,911 16,825 Provision (credit) for loan losses 526 (30) 532 880 Net interest income after provision (credit) for loan losses 13,377 14,043 15,379 15,945 Noninterest income 16,591 20,072 10,033 4,531 Noninterest expenses 24,852 25,461 22,835 18,001 Income before income taxes 5,116 8,654 2,577 2,475 Income tax expense (benefit) 811 1,619 (61) 9 Net income $ 4,305 $ 7,035 $ 2,638 $ 2,466 Net income per common share, basic $ 0.60 $ 0.99 $ 0.37 $ 0.35 Net income per common share, diluted $ 0.60 $ 0.98 $ 0.37 $ 0.35 First Second Third Fourth (In thousands, except per share data) Quarter Quarter Quarter Quarter September 30, 2021: Interest income $ 16,026 $ 16,840 $ 16,150 $ 16,243 Interest expense 2,287 2,060 1,921 1,819 Net interest income 13,739 14,780 14,229 14,424 Provision (credit) for loan losses 668 287 (2,730) 8 Net interest income after provision (credit) for loan losses 13,071 14,493 16,959 14,416 Noninterest income 46,183 38,973 18,785 16,495 Noninterest expenses 44,402 39,284 30,619 25,104 Income before income taxes 14,852 14,182 5,125 5,807 Income tax expense 4,527 3,695 817 958 Net income 10,325 10,487 4,308 4,849 Net income attributable to noncontrolling interest in subsidiary 402 — — — Net income attributable to First Savings Financial Group, Inc. $ 9,923 $ 10,487 $ 4,308 $ 4,849 Net income per common share, basic $ 1.40 $ 1.48 $ 0.61 $ 0.68 Net income per common share, diluted $ 1.39 $ 1.46 $ 0.60 $ 0.67 September 30, 2020: Interest income $ 13,661 $ 13,554 $ 14,719 $ 15,765 Interest expense 2,875 2,783 2,543 2,337 Net interest income 10,786 10,771 12,176 13,428 Provision for loan losses 505 1,705 2,980 2,772 Net interest income after provision for loan losses 10,281 9,066 9,196 10,656 Noninterest income 18,232 11,133 46,962 57,024 Noninterest expenses 24,272 22,075 35,009 44,452 Income (loss) before income taxes 4,241 (1,876) 21,149 23,228 Income tax expense (benefit) 638 (774) 5,540 7,257 Net income (loss) 3,603 (1,102) 15,609 15,971 Net income (loss) attributable to noncontrolling interest in subsidiary 164 (475) 204 834 Net income (loss) attributable to First Savings Financial Group, Inc. $ 3,439 $ (627) $ 15,405 $ 15,137 Net income (loss) per common share, basic $ 0.49 $ (0.09) $ 2.17 $ 2.13 Net income (loss) per common share, diluted $ 0.48 $ (0.09) $ 2.17 $ 2.12 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
SEGMENT REPORTING | |
Schedule of sum of the segment amounts and consolidated totals | Core SBA Mortgage Consolidated (In thousands) Banking Lending Banking Other Totals Year Ended September 30, 2022: Net interest income (loss) $ 54,252 $ 6,108 $ 2,360 $ (2,068) $ 60,652 Provision for loan losses 1,295 613 — — 1,908 Net interest income (loss) after provision 52,957 5,495 2,360 (2,068) 58,744 Net gains on sales of loans, SBA — 3,698 — — 3,698 Mortgage banking income (loss) (2) — 38,339 — 38,337 Noninterest income 8,292 4,623 38,312 — 51,227 Noninterest expense (income) 38,821 8,721 43,962 (355) 91,149 Income (loss) before taxes 22,428 1,397 (3,290) (1,713) 18,822 Income tax expense (benefit) 3,377 408 (618) (789) 2,378 Segment profit (loss) 19,051 989 (2,672) (924) 16,444 Noncash items: Depreciation and amortization 2,109 30 162 147 2,448 Segment assets at September 30, 2022 1,935,896 105,342 107,570 (91,146) 2,057,662 Core SBA Mortgage Consolidated (In thousands) Banking Lending Banking Other Totals Year Ended September 30, 2021: Net interest income (loss) $ 46,122 $ 10,339 $ 1,940 $ (1,229) $ 57,172 Provision (credit) for loan losses (1,782) 15 — — (1,767) Net interest income (loss) after provision 47,904 10,324 1,940 (1,229) 58,939 Net gains on sales of loans, SBA — 8,740 — — 8,740 Mortgage banking income 4 — 104,500 — 104,504 Noninterest income 6,331 9,661 104,444 — 120,436 Noninterest expense (income) 35,636 9,374 94,768 (369) 139,409 Income (loss) before taxes 18,599 10,611 11,616 (860) 39,966 Income tax expense (benefit) 2,935 2,512 5,047 (497) 9,997 Segment profit (loss) 15,664 8,099 6,569 (363) 29,969 Noncash items: Depreciation and amortization 1,953 42 237 68 2,300 Segment assets at September 30, 2021 1,469,371 168,342 232,279 (148,598) 1,721,394 Core SBA Mortgage Consolidated (In thousands) Banking Lending Banking Other Totals Year Ended September 30, 2020: Net interest income (loss) $ 39,408 $ 5,911 $ 3,046 $ (1,204) $ 47,161 Provision for loan losses 4,636 3,326 — — 7,962 Net interest income (loss) after provision 34,772 2,585 3,046 (1,204) 39,199 Net gains on sales of loans, SBA — 5,673 — — 5,673 Mortgage banking income 8 — 120,725 — 120,733 Noninterest income 5,905 6,751 120,695 — 133,351 Noninterest expense (income) 29,772 7,853 88,573 (390) 125,808 Income (loss) before taxes 10,905 1,483 35,168 (814) 46,742 Income tax expense (benefit) 2,265 189 10,793 (586) 12,661 Segment profit (loss) 8,640 1,294 24,375 (228) 34,081 Noncash items: Depreciation and amortization 1,558 51 181 68 1,858 Segment assets at September 30, 2020 1,459,467 283,994 293,973 (272,809) 1,764,625 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of sources of noninterest income | Year Ended September 30, (In thousands) 2022 2021 2020 Service charges on deposit accounts $ 1,864 $ 1,468 $ 1,581 ATM and interchange fees 2,753 2,399 2,116 Investment advisory income 717 589 288 Other 110 103 101 Revenue from contracts with customers 5,444 4,559 4,086 Gain on sale of securities 476 — 7 Gain on sale of SBA loans 3,698 8,740 5,673 Gain on sale of single tenant net lease loans 719 — — Mortgage banking income 38,337 104,504 120,733 Increase in cash value of life insurance 993 785 732 Real estate lease income 571 592 589 Other 989 1,256 1,531 Other noninterest income 45,783 115,877 129,265 Total noninterest income $ 51,227 $ 120,436 $ 133,351 |
MORTGAGE BANKING INCOME (Tables
MORTGAGE BANKING INCOME (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
MORTGAGE BANKING INCOME | |
Schedule of components of mortgage banking income | 2022 2021 2020 (In thousands) Origination and sale of mortgage loans (1) $ (674) $ 83,874 $ 105,659 Mortgage brokerage income 762 1,500 — Net change in fair value of loans held for sale and interest rate lock commitments (4,206) (18,856) 16,680 Realized and unrealized hedging gains (losses) 20,398 4,140 (22,412) Capitalized residential mortgage loan servicing rights 11,161 36,679 24,058 Net change in fair value of residential mortgage loan servicing rights 2,523 (8,803) (3,289) Net loan servicing income 9,045 6,565 651 Provisions for loan repurchases and indemnifications (672) (595) (614) Total mortgage banking income $ 38,337 $ 104,504 $ 120,733 (1) Includes origination fees and realized gains and losses on the sale of mortgage loans in the secondary market. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Cumulative Allocated Net Income | $ 3,700,000 | ||
Acquisition of minority interests in Q2 | $ (509,000) | $ (2,569,000) | |
Net deferred tax assets | 15,019,000 | 6,704,000 | |
Net lease loans held for sale carried at the lower of aggregate cost or fair value | 0 | ||
Allowance for loan losses | 15,360,000 | 14,301,000 | |
Allowance for loan losses, qualitative factor adjustments | 13,400,000 | 13,100,000 | |
Loans and Leases Receivable, Impaired, Interest Income Recognized, Change in Present Value Attributable to Passage of Time | $ 250,000 | ||
Percentage Of Income Tax Realized Upon Settlement | 50% | ||
Business Capital LLC | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Net deferred tax assets | 581,000 | ||
Maximum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Lookback period | 48 months | ||
Minimum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Lookback period | 24 months | ||
Small Business Administration Loans | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Loans held for sale, Small Business Administration | $ 21,900,000 | 24,100,000 | |
Net lease loans held for sale carried at the lower of aggregate cost or fair value | $ 23,000,000 | ||
Small Business Administration Loans | Maximum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Guarantor Obligations, Liquidation Proceeds, Percentage | 90% | ||
Small Business Administration Loans | Minimum | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Guarantor Obligations, Liquidation Proceeds, Percentage | 75% | ||
Interest-bearing Deposits [Member] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Maturity of Time Deposits | 90 days | ||
Subsidiary | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Equity Method Investment, Ownership Percentage | 51% | ||
Subsidiary | Business Capital LLC | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Acquisition of minority interests in Q2 | 695,000 | ||
Additional paid in capital | $ 2,400,000 |
RESTRICTION ON CASH AND DUE F_2
RESTRICTION ON CASH AND DUE FROM BANKS (Additional Information) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2020 |
RESTRICTION ON CASH AND DUE FROM BANKS | ||
Restricted cash and cash equivalents | $ 0 | $ 10,600 |
INVESTMENT SECURITIES - Fair Va
INVESTMENT SECURITIES - Fair Value to Amortized Cost (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Securities available for sale: | ||
Amortized Cost | $ 350,794 | $ 195,417 |
Gross Unrealized Gain | 191 | 11,717 |
Gross Unrealized Losses | 34,468 | 453 |
Fair Value | 316,517 | 206,681 |
Securities held to maturity: | ||
Amortized Cost | 1,558 | 1,837 |
Gross Unrealized Gain | 35 | 217 |
Gross Unrealized Losses | 0 | |
Fair Value | 1,593 | 2,054 |
U.S. Treasury bills | ||
Securities available for sale: | ||
Amortized Cost | 30,809 | 250 |
Gross Unrealized Gain | 0 | |
Gross Unrealized Losses | 3,514 | 0 |
Fair Value | 27,295 | 250 |
Agency Mortgage-Backed | ||
Securities available for sale: | ||
Amortized Cost | 30,786 | 8,143 |
Gross Unrealized Gain | 3 | 293 |
Gross Unrealized Losses | 3,289 | 52 |
Fair Value | 27,500 | 8,384 |
Securities held to maturity: | ||
Amortized Cost | 45 | 64 |
Gross Unrealized Gain | 5 | |
Gross Unrealized Losses | 0 | |
Fair Value | 45 | 69 |
Agency CMO. | ||
Securities available for sale: | ||
Amortized Cost | 15,562 | 13,315 |
Gross Unrealized Gain | 235 | |
Gross Unrealized Losses | 741 | 20 |
Fair Value | 14,821 | 13,530 |
Privately-issued CMO | ||
Securities available for sale: | ||
Amortized Cost | 495 | 729 |
Gross Unrealized Gain | 4 | 81 |
Gross Unrealized Losses | 29 | 7 |
Fair Value | 470 | 803 |
Privately-issued ABS | ||
Securities available for sale: | ||
Amortized Cost | 561 | 721 |
Gross Unrealized Gain | 16 | 51 |
Gross Unrealized Losses | 8 | 0 |
Fair Value | 569 | 772 |
SBA certificates | ||
Securities available for sale: | ||
Amortized Cost | 12,255 | 2,157 |
Gross Unrealized Gain | 1 | 2 |
Gross Unrealized Losses | 244 | 21 |
Fair Value | 12,012 | 2,138 |
Municipal bonds | ||
Securities available for sale: | ||
Amortized Cost | 260,326 | 170,102 |
Gross Unrealized Gain | 167 | 11,055 |
Gross Unrealized Losses | 26,643 | 353 |
Fair Value | 233,850 | 180,804 |
Securities held to maturity: | ||
Amortized Cost | 1,513 | 1,773 |
Gross Unrealized Gain | 35 | 212 |
Gross Unrealized Losses | 0 | |
Fair Value | $ 1,548 | $ 1,985 |
INVESTMENT SECURITIES - Amortiz
INVESTMENT SECURITIES - Amortized Cost and Fair Value by Contractual Maturity - Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Available for Sale - Amortized Cost | ||
Amortized Cost | $ 350,794 | $ 195,417 |
Available for Sale - Fair Value | ||
Fair Value | 316,517 | 206,681 |
Municipal bonds | ||
Available for Sale - Amortized Cost | ||
Due within one year | 9,696 | |
Due after one year through five years | 25,348 | |
Due after five years through ten years | 67,149 | |
Due after ten years | 188,942 | |
Amortized Cost | 260,326 | 170,102 |
Available for Sale - Fair Value | ||
Due within one year | 9,991 | |
Due after one year through five years | 25,086 | |
Due after five years through ten years | 62,891 | |
Due after ten years | 163,177 | |
Fair Value | 233,850 | 180,804 |
CMO | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 16,057 | |
Available for Sale - Fair Value | ||
Without single maturity date | 15,291 | |
ABS | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 561 | |
Available for Sale - Fair Value | ||
Without single maturity date | 569 | |
SBA certificates | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 12,255 | |
Amortized Cost | 12,255 | 2,157 |
Available for Sale - Fair Value | ||
Without single maturity date | 12,012 | |
Fair Value | 12,012 | $ 2,138 |
Mortgage-backed securities | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 30,786 | |
Available for Sale - Fair Value | ||
Without single maturity date | $ 27,500 |
INVESTMENT SECURITIES - Amort_2
INVESTMENT SECURITIES - Amortized Cost and Fair Value by Contractual Maturity - Held to Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Held to Maturity - Amortized Cost | ||
Amortized Cost | $ 1,558 | |
Held to Maturity - Fair Value | ||
Fair Value | 1,593 | $ 2,054 |
Municipal bonds | ||
Held to Maturity - Amortized Cost | ||
Due within one year | 249 | |
Due after one year through five years | 790 | |
Due after five years through ten years | 474 | |
Due after ten years | 0 | |
Held to Maturity - Fair Value | ||
Due within one year | 254 | |
Due after one year through five years | 808 | |
Due after five years through ten years | 486 | |
Due after ten years | 0 | |
Fair Value | 1,548 | $ 1,985 |
CMO | ||
Held to Maturity - Amortized Cost | ||
Without single maturity date | 0 | |
Held to Maturity - Fair Value | ||
Without single maturity date | 0 | |
ABS | ||
Held to Maturity - Amortized Cost | ||
Without single maturity date | 0 | |
Held to Maturity - Fair Value | ||
Without single maturity date | 0 | |
SBA certificates | ||
Held to Maturity - Amortized Cost | ||
Without single maturity date | 0 | |
Held to Maturity - Fair Value | ||
Without single maturity date | 0 | |
Mortgage-backed securities | ||
Held to Maturity - Amortized Cost | ||
Without single maturity date | 45 | |
Held to Maturity - Fair Value | ||
Without single maturity date | $ 45 |
INVESTMENT SECURITIES - Investm
INVESTMENT SECURITIES - Investment Securities With Gross Unrealized Losses (Details) $ in Thousands | Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) item | Sep. 30, 2019 item |
Fair Value | |||
Continuous loss position less than twelve months | $ 265,379 | $ 20,439 | |
Continuous loss position more than twelve months | 11,135 | 2,013 | |
Total securities available for sale | $ 276,514 | $ 22,452 | |
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 295 | 22 | |
Continuous loss position more than twelve months | item | 14 | 3 | |
Total securities available for sale | item | 309 | 25 | |
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 31,981 | $ 346 | |
Continuous loss position more than twelve months | 2,487 | 107 | |
Total securities available for sale | 34,468 | 453 | |
U.S. Treasury bills | |||
Fair Value | |||
Continuous loss position less than twelve months | $ 27,295 | ||
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 7 | ||
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 3,514 | ||
Agency Mortgage-Backed | |||
Fair Value | |||
Continuous loss position less than twelve months | 24,987 | ||
Continuous loss position more than twelve months | $ 2,169 | ||
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 14 | ||
Continuous loss position more than twelve months | item | 1 | ||
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 2,749 | ||
Continuous loss position more than twelve months | 540 | ||
Agency mortgage-backed | |||
Fair Value | |||
Continuous loss position less than twelve months | $ 3,056 | ||
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 1 | ||
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 52 | ||
Agency CMO. | |||
Fair Value | |||
Continuous loss position less than twelve months | 8,896 | ||
Continuous loss position more than twelve months | $ 1,199 | ||
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 12 | ||
Continuous loss position more than twelve months | item | 2 | ||
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 551 | ||
Continuous loss position more than twelve months | 190 | ||
Privately-issued CMO | |||
Fair Value | |||
Continuous loss position less than twelve months | 424 | ||
Continuous loss position more than twelve months | $ 19 | $ 23 | |
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 2 | ||
Continuous loss position more than twelve months | item | 1 | 1 | |
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 20 | ||
Continuous loss position more than twelve months | 9 | $ 7 | |
Privately-issued ABS | |||
Fair Value | |||
Continuous loss position more than twelve months | $ 283 | ||
Number of Investment Positions | |||
Continuous loss position more than twelve months | item | 1 | ||
Gross Unrealized Losses | |||
Continuous loss position more than twelve months | $ 8 | ||
Agency CMO | |||
Fair Value | |||
Continuous loss position less than twelve months | $ 1,466 | ||
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 2 | ||
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 20 | ||
SBA certificates | |||
Fair Value | |||
Continuous loss position less than twelve months | 10,775 | 2,013 | |
Continuous loss position more than twelve months | $ 1,202 | $ 88 | |
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 1 | 1 | |
Continuous loss position more than twelve months | item | 1 | 2 | |
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 225 | $ 20 | |
Continuous loss position more than twelve months | 19 | 1 | |
Municipal bonds | |||
Fair Value | |||
Continuous loss position less than twelve months | 193,002 | 13,904 | |
Continuous loss position more than twelve months | $ 6,263 | $ 1,902 | |
Number of Investment Positions | |||
Continuous loss position less than twelve months | item | 259 | 18 | |
Continuous loss position more than twelve months | item | 7 | 1 | |
Gross Unrealized Losses | |||
Continuous loss position less than twelve months | $ 24,922 | $ 254 | |
Continuous loss position more than twelve months | $ 1,721 | $ 99 |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Details) | 12 Months Ended | ||
Sep. 30, 2022 USD ($) item | Sep. 30, 2020 USD ($) | Sep. 30, 2021 item | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Available for sale debt securities in loss position, depreciation percentage | 3.41% | ||
Continuous loss position more than twelve months | item | 14 | 3 | |
Gross realized gains on sales | $ 488,000 | $ 17,000 | |
Gross realized losses on sales | $ (12,000) | $ (10,000) | |
Weighted Average Yield Of Available For Sale Securities In Loss Positions | 3.13% | ||
Debt Securities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Available for sale debt securities in loss position, depreciation percentage | 11.08% | ||
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 | $ 395,000 | ||
Debt Securities | Downgraded Privately Issued Cmos | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Fair market value of downgraded privately issued collateralized mortgage obligations | $ 382,000 | ||
Two Privately Issued Collateralized Mortgage Obligations | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Available for sale debt securities in loss position, depreciation percentage | 4.85% | ||
Privately-issued CMO | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Continuous loss position more than twelve months | item | 1 | 1 | |
Investments, Fair value disclosure | $ 726,000 | ||
Privately-issued ABS | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Continuous loss position more than twelve months | item | 1 | ||
Total unrealized loss | $ 37,000 | ||
Agency Mortgage-Backed | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Continuous loss position more than twelve months | item | 1 |
INVESTMENT SECURITIES - Gross R
INVESTMENT SECURITIES - Gross Realized Gain and Losses on Sales of Available for Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2020 | |
Gross Realized Gain and Losses | ||
Gross realized gains on sales | $ 488 | $ 17 |
Gross realized losses on sales | (12) | (10) |
Net realized gain on sales of available for sale securities and time deposits | $ 476 | $ 7 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loans (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Loans and Allowance for Loan Losses | ||
Total loans | $ 1,450,863,000 | $ 1,089,956,000 |
Deferred loan origination fees and costs, net | 1,052,000 | 281,000 |
Allowance for loan losses | (15,360,000) | (14,301,000) |
Loans, net | 1,436,555,000 | 1,075,936,000 |
Other Financial Institutions | ||
Loans and Allowance for Loan Losses | ||
Loans, net | 261,000 | 216,000 |
Commercial Real Estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | (304,000) | (208,000) |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | 47,000 | (123,000) |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | (40,000) | (47,000) |
Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | (89,000) | (49,000) |
Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | (25,000) | (28,000) |
Land and Land Development | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | 26,000 | (6,000) |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | 218,000 | (420,000) |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | 21,000 | (17,000) |
Commercial Business | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | 48,000 | 49,000 |
Pay Check Protection Program | ||
Loans and Allowance for Loan Losses | ||
Total loans | 650,000 | 56,700,000 |
Deferred loan origination fees and costs, net | 11,000 | 757,000 |
Real estate mortgage | One To Four Family | ||
Loans and Allowance for Loan Losses | ||
Total loans | 368,211,000 | 241,425,000 |
Real estate mortgage | Commercial Real Estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Total loans | 169,861,000 | 149,600,000 |
Real estate mortgage | Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Total loans | 636,578,000 | 403,692,000 |
Real estate mortgage | SBA | ||
Loans and Allowance for Loan Losses | ||
Total loans | 59,379,000 | 62,805,000 |
Real estate mortgage | Multifamily | ||
Loans and Allowance for Loan Losses | ||
Total loans | 32,411,000 | 40,324,000 |
Real estate mortgage | Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Total loans | 18,261,000 | 8,330,000 |
Real estate mortgage | Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Total loans | 5,938,000 | 2,717,000 |
Real estate mortgage | Land and Land Development | ||
Loans and Allowance for Loan Losses | ||
Total loans | 11,880,000 | 10,217,000 |
Real estate mortgage | Commercial business | ||
Loans and Allowance for Loan Losses | ||
Total loans | 90,010,000 | 59,883,000 |
Real estate mortgage | SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Total loans | 20,282,000 | 80,400,000 |
Real estate mortgage | Consumer | ||
Loans and Allowance for Loan Losses | ||
Total loans | $ 38,052,000 | $ 30,563,000 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Activity For Related Party Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | ||
Beginning balance | $ 5,975 | $ 7,716 |
New loans and advances | 5,022 | 4,832 |
Repayments | (2,531) | (2,601) |
Loans sold | (191) | (2,992) |
Reclassifications due to officer and director changes | (619) | (980) |
Ending balance | 7,656 | 5,975 |
Off Balance Sheet Commitments to Related Parties | $ 2,800 | $ 3,000 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Components of Recorded Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Recorded Investment in Loans: | ||
Principal loan balance | $ 1,450,863 | $ 1,089,956 |
Accrued interest receivable | 5,379 | 4,398 |
Net deferred loan origination fees and costs | 1,052 | 281 |
Recorded investment in loans | 1,457,294 | 1,094,635 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 13,570 | 16,743 |
Collectively evaluated for impairment | 1,443,724 | 1,077,892 |
Recorded investment in loans | 1,457,294 | 1,094,635 |
Residential real estate | ||
Recorded Investment in Loans: | ||
Principal loan balance | 368,211 | 241,425 |
Accrued interest receivable | 1,701 | 821 |
Net deferred loan origination fees and costs | 136 | 24 |
Recorded investment in loans | 370,048 | 242,270 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 2,248 | 3,067 |
Collectively evaluated for impairment | 367,800 | 239,203 |
Recorded investment in loans | 370,048 | 242,270 |
Commercial Real Estate [Member] | ||
Recorded Investment in Loans: | ||
Principal loan balance | 169,861 | 149,600 |
Accrued interest receivable | 533 | 563 |
Net deferred loan origination fees and costs | (304) | (208) |
Recorded investment in loans | 170,090 | 149,955 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 907 | 1,021 |
Collectively evaluated for impairment | 169,183 | 148,934 |
Recorded investment in loans | 170,090 | 149,955 |
Single tenant net lease | ||
Recorded Investment in Loans: | ||
Principal loan balance | 636,578 | 403,692 |
Accrued interest receivable | 1,979 | 1,369 |
Net deferred loan origination fees and costs | 47 | (123) |
Recorded investment in loans | 638,604 | 404,938 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 638,604 | 404,938 |
Recorded investment in loans | 638,604 | 404,938 |
SBA commercial real estate | ||
Recorded Investment in Loans: | ||
Principal loan balance | 59,379 | 62,805 |
Accrued interest receivable | 486 | 475 |
Net deferred loan origination fees and costs | 1,108 | 1,106 |
Recorded investment in loans | 60,973 | 64,386 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 7,725 | 9,153 |
Collectively evaluated for impairment | 53,248 | 55,233 |
Recorded investment in loans | 60,973 | 64,386 |
Multifamily | ||
Recorded Investment in Loans: | ||
Principal loan balance | 32,411 | 40,324 |
Accrued interest receivable | 62 | 76 |
Net deferred loan origination fees and costs | (40) | (47) |
Recorded investment in loans | 32,433 | 40,353 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 354 | 482 |
Collectively evaluated for impairment | 32,079 | 39,871 |
Recorded investment in loans | 32,433 | 40,353 |
Residential Construction | ||
Recorded Investment in Loans: | ||
Principal loan balance | 18,261 | 8,330 |
Accrued interest receivable | 27 | 14 |
Net deferred loan origination fees and costs | (89) | (49) |
Recorded investment in loans | 18,199 | 8,295 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 18,199 | 8,295 |
Recorded investment in loans | 18,199 | 8,295 |
Commercial Construction | ||
Recorded Investment in Loans: | ||
Principal loan balance | 5,938 | 2,717 |
Accrued interest receivable | 11 | 6 |
Net deferred loan origination fees and costs | (25) | (28) |
Recorded investment in loans | 5,924 | 2,695 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 5,924 | 2,695 |
Recorded investment in loans | 5,924 | 2,695 |
Land and Land Development | ||
Recorded Investment in Loans: | ||
Principal loan balance | 11,880 | 10,217 |
Accrued interest receivable | 18 | 18 |
Net deferred loan origination fees and costs | 26 | (6) |
Recorded investment in loans | 11,872 | 10,229 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 11,872 | 10,229 |
Recorded investment in loans | 11,872 | 10,229 |
Commercial Business | ||
Recorded Investment in Loans: | ||
Principal loan balance | 90,010 | 59,883 |
Accrued interest receivable | 278 | 171 |
Net deferred loan origination fees and costs | 48 | 49 |
Recorded investment in loans | 90,336 | 60,103 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 1,007 | 1,476 |
Collectively evaluated for impairment | 89,329 | 58,627 |
Recorded investment in loans | 90,336 | 60,103 |
SBA commercial business | ||
Recorded Investment in Loans: | ||
Principal loan balance | 20,282 | 80,400 |
Accrued interest receivable | 163 | 791 |
Net deferred loan origination fees and costs | 218 | (420) |
Recorded investment in loans | 20,663 | 80,771 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 1,091 | 1,296 |
Collectively evaluated for impairment | 16,572 | 79,475 |
Recorded investment in loans | 20,663 | 80,771 |
Consumer | ||
Recorded Investment in Loans: | ||
Principal loan balance | 38,052 | 30,563 |
Accrued interest receivable | 121 | 94 |
Net deferred loan origination fees and costs | 21 | (17) |
Recorded investment in loans | 38,152 | 30,640 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 238 | 248 |
Collectively evaluated for impairment | 37,914 | 30,392 |
Recorded investment in loans | $ 38,152 | $ 30,640 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2018 | |
Changes in Allowance for Loan Losses: | ||||
Beginning balance | $ 14,301 | $ 17,026 | ||
Provisions | 1,908 | (1,767) | $ 7,962 | |
Charge-offs | (1,097) | (1,124) | (1,170) | |
Recoveries | 248 | 166 | 194 | |
Ending balance | 15,360 | 14,301 | 17,026 | |
Off-balance-sheet commitments | 2,800 | 3,000 | ||
Ending Allowance Balance Attributable to Loans: | ||||
Individually evaluated for impairment | 964 | 133 | ||
Collectively evaluated for impairment | 14,396 | 14,168 | ||
Ending balance | 15,360 | 14,301 | 17,026 | $ 10,040 |
Residential real estate | ||||
Changes in Allowance for Loan Losses: | ||||
Beginning balance | 1,438 | 1,255 | ||
Provisions | 1,287 | 170 | 945 | |
Charge-offs | (23) | (11) | (36) | |
Recoveries | 14 | 24 | 29 | |
Ending balance | 2,716 | 1,438 | 1,255 | |
Ending Allowance Balance Attributable to Loans: | ||||
Collectively evaluated for impairment | 2,716 | 1,438 | ||
Ending balance | 2,716 | 1,438 | 1,255 | 317 |
Commercial Real Estate [Member] | ||||
Changes in Allowance for Loan Losses: | ||||
Beginning balance | 2,806 | 3,058 | ||
Provisions | (1,216) | (252) | 614 | |
Charge-offs | 0 | 0 | (102) | |
Recoveries | 0 | 0 | 6 | |
Ending balance | 1,590 | 2,806 | 3,058 | |
Ending Allowance Balance Attributable to Loans: | ||||
Collectively evaluated for impairment | 1,590 | 2,806 | ||
Ending balance | 1,590 | 2,806 | 3,058 | 2,540 |
Single tenant net lease | ||||
Changes in Allowance for Loan Losses: | ||||
Beginning balance | 2,422 | 3,017 | ||
Provisions | 1,416 | (595) | 1,342 | |
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Ending balance | 3,838 | 2,422 | 3,017 | |
Ending Allowance Balance Attributable to Loans: | ||||
Collectively evaluated for impairment | 3,838 | 2,422 | ||
Ending balance | 3,838 | 2,422 | 3,017 | 1,675 |
SBA commercial real estate | ||||
Changes in Allowance for Loan Losses: | ||||
Beginning balance | 3,475 | 4,154 | ||
Provisions | (802) | 234 | 2,175 | |
Charge-offs | (110) | (936) | (360) | |
Recoveries | 15 | 23 | 46 | |
Ending balance | 2,578 | 3,475 | 4,154 | |
Ending Allowance Balance Attributable to Loans: | ||||
Individually evaluated for impairment | 290 | 144 | ||
Collectively evaluated for impairment | 2,288 | 3,361 | ||
Ending balance | 2,578 | 3,475 | 4,154 | 2,293 |
Multifamily | ||||
Changes in Allowance for Loan Losses: | ||||
Beginning balance | 518 | 772 | ||
Provisions | (267) | (254) | 294 | |
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Ending balance | 251 | 518 | 772 | |
Ending Allowance Balance Attributable to Loans: | ||||
Collectively evaluated for impairment | 251 | 518 | ||
Ending balance | 251 | 518 | 772 | 478 |
Residential Construction | ||||
Changes in Allowance for Loan Losses: | ||||
Beginning balance | 191 | 243 | ||
Provisions | 114 | (52) | (5) | |
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Ending balance | 305 | 191 | 243 | |
Ending Allowance Balance Attributable to Loans: | ||||
Collectively evaluated for impairment | 305 | 191 | ||
Ending balance | 305 | 191 | 243 | 248 |
Commercial Construction | ||||
Changes in Allowance for Loan Losses: | ||||
Beginning balance | 63 | 181 | ||
Provisions | 44 | (118) | 114 | |
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Ending balance | 107 | 63 | 181 | |
Ending Allowance Balance Attributable to Loans: | ||||
Collectively evaluated for impairment | 107 | 63 | ||
Ending balance | 107 | 63 | 181 | 67 |
Land and Land Development | ||||
Changes in Allowance for Loan Losses: | ||||
Beginning balance | 235 | 243 | ||
Provisions | (23) | (8) | 28 | |
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | 6 | |
Ending balance | 212 | 235 | 243 | |
Ending Allowance Balance Attributable to Loans: | ||||
Collectively evaluated for impairment | 212 | 235 | ||
Ending balance | 212 | 235 | 243 | 209 |
Commercial Business | ||||
Changes in Allowance for Loan Losses: | ||||
Beginning balance | 1,284 | 1,449 | ||
Provisions | (119) | (170) | 567 | |
Charge-offs | (91) | 0 | (38) | |
Recoveries | 119 | 5 | 31 | |
Ending balance | 1,193 | 1,284 | 1,449 | |
Ending Allowance Balance Attributable to Loans: | ||||
Collectively evaluated for impairment | 1,193 | 1,284 | ||
Ending balance | 1,193 | 1,284 | 1,449 | 889 |
SBA commercial business | ||||
Changes in Allowance for Loan Losses: | ||||
Beginning balance | 1,346 | 1,539 | ||
Provisions | 1,413 | (211) | 1,109 | |
Charge-offs | (698) | (21) | (396) | |
Recoveries | 61 | 39 | 76 | |
Ending balance | 2,122 | 1,346 | 1,539 | |
Ending Allowance Balance Attributable to Loans: | ||||
Individually evaluated for impairment | 674 | 18 | ||
Collectively evaluated for impairment | 1,448 | 1,328 | ||
Ending balance | 2,122 | 1,346 | 1,539 | 750 |
Consumer | ||||
Changes in Allowance for Loan Losses: | ||||
Beginning balance | 523 | 1,115 | ||
Provisions | 61 | (511) | 779 | |
Charge-offs | (175) | (156) | (238) | |
Recoveries | 39 | 75 | ||
Ending balance | 448 | 523 | 1,115 | |
Ending Allowance Balance Attributable to Loans: | ||||
Individually evaluated for impairment | 1 | |||
Collectively evaluated for impairment | 448 | 522 | ||
Ending balance | $ 448 | $ 523 | $ 1,115 | $ 574 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | $ 10,167 | $ 15,546 | $ 10,317 |
Loans with no related allowance recorded, Unpaid Principal Balance | 11,658 | 17,245 | 10,915 |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 13,487 | 13,482 | 11,400 |
Loans with no related allowance recorded, Interest Income Recognized | 92 | 102 | 298 |
Loans with an allowance recorded, Recorded Investment | 3,403 | 1,197 | 6,367 |
Loans with an allowance recorded, Unpaid Principal Balance | 4,413 | 1,624 | 6,798 |
Loans with an allowance recorded, Related Allowance | 964 | 133 | 1,443 |
Loans with an allowance recorded, Average Recorded Investment | 3,367 | 3,915 | 5,752 |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | |
Total, Recorded Investment | 13,570 | 16,743 | 16,684 |
Total, Unpaid Principal Balance | 16,071 | 18,869 | 17,713 |
Total, Related Allowance | 964 | 133 | 1,443 |
Total, Average Recorded Investment | 16,854 | 17,397 | 17,152 |
Total, Interest Income Recognized | 92 | 102 | 298 |
Residential real estate | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 2,248 | 3,002 | 5,185 |
Loans with no related allowance recorded, Unpaid Principal Balance | 2,524 | 3,551 | 5,697 |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 2,978 | 4,383 | 5,411 |
Loans with no related allowance recorded, Interest Income Recognized | 45 | 68 | 127 |
Loans with an allowance recorded, Recorded Investment | 0 | 65 | 174 |
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 65 | 175 |
Loans with an allowance recorded, Related Allowance | 0 | 0 | 30 |
Loans with an allowance recorded, Average Recorded Investment | 206 | 108 | 59 |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | |
Total, Recorded Investment | 2,248 | 3,067 | 5,359 |
Total, Unpaid Principal Balance | 2,524 | 3,616 | 5,872 |
Total, Related Allowance | 0 | 0 | 30 |
Total, Average Recorded Investment | 3,184 | 4,491 | 5,470 |
Total, Interest Income Recognized | 45 | 68 | 127 |
Commercial Real Estate [Member] | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 907 | 1,021 | 1,134 |
Loans with no related allowance recorded, Unpaid Principal Balance | 982 | 1,092 | 1,185 |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 1,038 | 1,148 | 3,914 |
Loans with no related allowance recorded, Interest Income Recognized | 21 | 29 | 167 |
Loans with an allowance recorded, Recorded Investment | 0 | 0 | |
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | |
Loans with an allowance recorded, Related Allowance | 0 | 0 | |
Loans with an allowance recorded, Average Recorded Investment | 0 | 0 | 20 |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | |
Total, Recorded Investment | 907 | 1,021 | 1,134 |
Total, Unpaid Principal Balance | 982 | 1,092 | 1,185 |
Total, Related Allowance | 0 | 0 | |
Total, Average Recorded Investment | 1,038 | 1,148 | 3,934 |
Total, Interest Income Recognized | 21 | 29 | 167 |
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 | ||
Loans with no related allowance recorded, Average Recorded Investment | 0 | 0 | |
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | |
Loans with an allowance recorded, Recorded Investment | 0 | 0 | |
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | |
Loans with an allowance recorded, Related Allowance | 0 | 0 | |
Loans with an allowance recorded, Average Recorded Investment | 0 | 0 | |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | |
Total, Recorded Investment | 0 | 0 | |
Total, Unpaid Principal Balance | 0 | 0 | |
Total, Related Allowance | 0 | 0 | |
Total, Average Recorded Investment | 0 | 0 | |
Total, Interest Income Recognized | 0 | 0 | |
SBA commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 5,337 | 8,184 | 1,245 |
Loans with no related allowance recorded, Unpaid Principal Balance | 5,952 | 8,873 | 1,178 |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 7,235 | 4,738 | 586 |
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | |
Loans with an allowance recorded, Recorded Investment | 2,388 | 969 | 5,682 |
Loans with an allowance recorded, Unpaid Principal Balance | 2,919 | 1,394 | 6,086 |
Loans with an allowance recorded, Related Allowance | 290 | 114 | 1,366 |
Loans with an allowance recorded, Average Recorded Investment | 2,213 | 3,389 | 5,048 |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | |
Total, Recorded Investment | 7,725 | 9,153 | 6,927 |
Total, Unpaid Principal Balance | 8,871 | 10,267 | 7,264 |
Total, Related Allowance | 290 | 114 | 1,366 |
Total, Average Recorded Investment | 9,448 | 8,127 | 5,634 |
Total, Interest Income Recognized | 0 | 0 | |
Multifamily | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 354 | 482 | 698 |
Loans with no related allowance recorded, Unpaid Principal Balance | 398 | 539 | 700 |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 415 | 638 | 421 |
Loans with no related allowance recorded, Interest Income Recognized | 6 | 0 | |
Loans with an allowance recorded, Recorded Investment | 0 | 0 | |
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | |
Loans with an allowance recorded, Related Allowance | 0 | 0 | |
Loans with an allowance recorded, Average Recorded Investment | 0 | 0 | |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | |
Total, Recorded Investment | 354 | 482 | 698 |
Total, Unpaid Principal Balance | 398 | 539 | 700 |
Total, Related Allowance | 0 | 0 | |
Total, Average Recorded Investment | 415 | 638 | 421 |
Total, Interest Income Recognized | 6 | 0 | |
Residential Construction | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 0 | 0 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 0 | 0 | |
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 0 | 0 | |
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | |
Loans with an allowance recorded, Recorded Investment | 0 | 0 | |
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | |
Loans with an allowance recorded, Related Allowance | 0 | 0 | |
Loans with an allowance recorded, Average Recorded Investment | 0 | 0 | |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | |
Total, Recorded Investment | 0 | 0 | |
Total, Unpaid Principal Balance | 0 | 0 | |
Total, Related Allowance | 0 | 0 | |
Total, Average Recorded Investment | 0 | 0 | |
Total, Interest Income Recognized | 0 | 0 | |
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 | ||
Loans with no related allowance recorded, Average Recorded Investment | 0 | 0 | |
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | |
Loans with an allowance recorded, Recorded Investment | 0 | 0 | |
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | |
Loans with an allowance recorded, Related Allowance | 0 | 0 | |
Loans with an allowance recorded, Average Recorded Investment | 0 | 0 | |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | |
Total, Recorded Investment | 0 | 0 | |
Total, Unpaid Principal Balance | 0 | 0 | |
Total, Related Allowance | 0 | 0 | |
Total, Average Recorded Investment | 0 | 0 | |
Total, Interest Income Recognized | 0 | 0 | |
Land and Land Development | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 0 | 0 | 2 |
Loans with no related allowance recorded, Unpaid Principal Balance | 0 | 0 | 1 |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 0 | 1 | 1 |
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | |
Loans with an allowance recorded, Recorded Investment | 0 | 0 | |
Loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 | |
Loans with an allowance recorded, Related Allowance | 0 | 0 | |
Loans with an allowance recorded, Average Recorded Investment | 0 | 0 | |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | |
Total, Recorded Investment | 0 | 0 | 2 |
Total, Unpaid Principal Balance | 0 | 0 | 1 |
Total, Related Allowance | 0 | 0 | |
Total, Average Recorded Investment | 0 | 1 | 1 |
Total, Interest Income Recognized | 0 | 0 | |
Commercial Business | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 1,007 | 1,476 | 1,670 |
Loans with no related allowance recorded, Unpaid Principal Balance | 1,189 | 1,559 | 1,675 |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 1,318 | 1,664 | 745 |
Loans with no related allowance recorded, Interest Income Recognized | 19 | 3 | 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 | |
Loans with an allowance recorded, Average Recorded Investment | 0 | 1 | 328 |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | |
Total, Recorded Investment | 1,007 | 1,476 | 1,670 |
Total, Unpaid Principal Balance | 1,189 | 1,559 | 1,675 |
Total, Related Allowance | 0 | 0 | |
Total, Average Recorded Investment | 1,318 | 1,665 | 1,073 |
Total, Interest Income Recognized | 19 | 3 | 1 |
SBA commercial business | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 221 | 1,278 | 322 |
Loans with no related allowance recorded, Unpaid Principal Balance | 532 | 1,534 | 416 |
Loans with no related allowance recorded, Average Recorded Investment | 412 | 820 | 250 |
Loans with no related allowance recorded, Interest Income Recognized | 0 | 0 | |
Loans with an allowance recorded, Recorded Investment | 870 | 18 | 373 |
Loans with an allowance recorded, Unpaid Principal Balance | 1,349 | 21 | 399 |
Loans with an allowance recorded, Related Allowance | 674 | 18 | 47 |
Loans with an allowance recorded, Average Recorded Investment | 802 | 248 | 143 |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | |
Total, Recorded Investment | 1,091 | 1,296 | 695 |
Total, Unpaid Principal Balance | 1,881 | 1,555 | 815 |
Total, Related Allowance | 674 | 18 | 47 |
Total, Average Recorded Investment | 1,214 | 1,068 | 393 |
Total, Interest Income Recognized | 0 | 0 | |
Consumer | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 93 | 103 | 61 |
Loans with no related allowance recorded, Unpaid Principal Balance | 81 | 97 | 63 |
Loans with no related allowance recorded, Related Allowance | 0 | 0 | |
Loans with no related allowance recorded, Average Recorded Investment | 91 | 90 | 72 |
Loans with no related allowance recorded, Interest Income Recognized | 1 | 2 | 3 |
Loans with an allowance recorded, Recorded Investment | 145 | 145 | 138 |
Loans with an allowance recorded, Unpaid Principal Balance | 145 | 144 | 138 |
Loans with an allowance recorded, Related Allowance | 0 | 1 | |
Loans with an allowance recorded, Average Recorded Investment | 146 | 169 | 154 |
Loans with an allowance recorded, Interest Income Recognized | 0 | 0 | |
Total, Recorded Investment | 238 | 248 | 199 |
Total, Unpaid Principal Balance | 226 | 241 | 201 |
Total, Related Allowance | 0 | 1 | |
Total, Average Recorded Investment | 237 | 259 | 226 |
Total, Interest Income Recognized | 1 | 2 | $ 3 |
Construction | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Related Allowance | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Nonperforming Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | $ 10,856 | $ 15,000 |
Loans 90+ Days Past Due Still Accruing | 0 | 472 |
Total Nonperforming Loans | 10,856 | 15,472 |
Residential real estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 1,213 | 1,894 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 1,213 | 1,894 |
Commercial Real Estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 516 | 599 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 516 | 599 |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | 0 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 0 | 0 |
SBA commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 7,725 | 9,153 |
Loans 90+ Days Past Due Still Accruing | 0 | 472 |
Total Nonperforming Loans | 7,725 | 9,625 |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | 482 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 0 | 482 |
Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | 0 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 0 | 0 |
Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | 0 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 0 | 0 |
Land and Land Development | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | 0 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 0 | 0 |
Commercial Business | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 73 | 1,370 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 73 | 1,370 |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 1,091 | 1,296 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | 1,091 | 1,296 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 238 | 206 |
Loans 90+ Days Past Due Still Accruing | 0 | 0 |
Total Nonperforming Loans | $ 238 | $ 206 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Aging of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | $ 1,457,294 | $ 1,094,635 |
Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 1,495 | 869 |
Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 53 | 684 |
Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 1,451,288 | 1,086,225 |
Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 6,006 | 8,410 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 4,458 | 6,857 |
Residential real estate | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 370,048 | 242,270 |
Residential real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 1,169 | 818 |
Residential real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 53 | 352 |
Residential real estate | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 368,622 | 240,753 |
Residential real estate | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,426 | 1,517 |
Residential real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 204 | 347 |
Commercial Real Estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 170,090 | 149,955 |
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial Real Estate [Member] | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 169,574 | 149,356 |
Commercial Real Estate [Member] | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 516 | 599 |
Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 516 | 599 |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 638,604 | 404,938 |
Single tenant net lease | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Single tenant net lease | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Single tenant net lease | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 638,604 | 404,938 |
Single tenant net lease | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | 0 |
Single tenant net lease | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
SBA commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 60,973 | 64,386 |
SBA commercial real estate | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
SBA commercial real estate | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 208 |
SBA commercial real estate | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 57,603 | 59,188 |
SBA commercial real estate | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 3,370 | 5,198 |
SBA commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 3,370 | 4,990 |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 32,433 | 40,353 |
Multifamily | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Multifamily | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Multifamily | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 32,433 | 40,353 |
Multifamily | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | 0 |
Multifamily | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 18,199 | 8,295 |
Residential Construction | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Residential Construction | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Residential Construction | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 18,199 | 8,295 |
Residential Construction | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | 0 |
Residential Construction | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 5,924 | 2,695 |
Commercial Construction | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial Construction | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial Construction | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 5,924 | 2,695 |
Commercial Construction | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | 0 |
Commercial Construction | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Land and Land Development | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 11,872 | 10,229 |
Land and Land Development | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Land and Land Development | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Land and Land Development | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 11,872 | 10,229 |
Land and Land Development | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | 0 |
Land and Land Development | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial Business | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 90,336 | 60,103 |
Commercial Business | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial Business | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 0 |
Commercial Business | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 90,263 | 60,100 |
Commercial Business | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 73 | 3 |
Commercial Business | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 73 | 3 |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 20,663 | 80,771 |
SBA commercial business | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 231 | 18 |
SBA commercial business | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 104 |
SBA commercial business | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 20,195 | 79,801 |
SBA commercial business | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 468 | 970 |
SBA commercial business | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 237 | 848 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 38,152 | 30,640 |
Consumer | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 95 | 33 |
Consumer | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 0 | 20 |
Consumer | Financial Asset, Not Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 37,999 | 30,517 |
Consumer | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 153 | 123 |
Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | $ 58 | $ 70 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES - Recorded Investment in Loans by Risk Category (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | $ 1,457,294 | $ 1,094,635 |
Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,441,468 | 1,053,774 |
Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,677 | 16,316 |
Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 12,273 | 21,102 |
Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,876 | 3,443 |
Loss | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Residential real estate | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 370,048 | 242,270 |
Residential real estate | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 368,377 | 240,078 |
Residential real estate | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Residential real estate | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,501 | 2,018 |
Residential real estate | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 170 | 174 |
Residential real estate | Loss | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Real Estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 170,090 | 149,955 |
Commercial Real Estate [Member] | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 169,363 | 143,031 |
Commercial Real Estate [Member] | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | 4,059 |
Commercial Real Estate [Member] | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 727 | 2,865 |
Commercial Real Estate [Member] | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Real Estate [Member] | Loss | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 638,604 | 404,938 |
Single tenant net lease | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 638,604 | 404,938 |
Single tenant net lease | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Single tenant net lease | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Single tenant net lease | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Single tenant net lease | Loss | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
SBA commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 60,973 | 64,386 |
SBA commercial real estate | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 51,053 | 45,465 |
SBA commercial real estate | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,143 | 5,343 |
SBA commercial real estate | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 7,112 | 10,339 |
SBA commercial real estate | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,665 | 3,239 |
SBA commercial real estate | Loss | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 32,433 | 40,353 |
Multifamily | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 32,433 | 39,871 |
Multifamily | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Multifamily | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | 482 |
Multifamily | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Multifamily | Loss | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Residential Construction | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 18,199 | 8,295 |
Residential Construction | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 18,199 | 8,295 |
Residential Construction | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Residential Construction | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Residential Construction | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Residential Construction | Loss | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Construction | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 5,924 | 2,695 |
Commercial Construction | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 5,924 | 2,695 |
Commercial Construction | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Construction | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Construction | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Construction | Loss | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Land and Land Development | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 11,872 | 10,229 |
Land and Land Development | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 11,872 | 10,229 |
Land and Land Development | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Land and Land Development | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Land and Land Development | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Land and Land Development | Loss | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Business | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 90,336 | 60,103 |
Commercial Business | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 90,001 | 58,583 |
Commercial Business | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 250 | |
Commercial Business | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 85 | 1,520 |
Commercial Business | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Commercial Business | Loss | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 20,663 | 80,771 |
SBA commercial business | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 17,583 | 70,019 |
SBA commercial business | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 284 | 6,914 |
SBA commercial business | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 2,755 | 3,808 |
SBA commercial business | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 41 | 30 |
SBA commercial business | Loss | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 38,152 | 30,640 |
Consumer | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 38,059 | 30,570 |
Consumer | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Consumer | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 93 | $ 70 |
Consumer | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 0 | |
Consumer | Loss | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES - Recorded Investment in Troubled Debt Restructurings by Class of Loan and Accrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Financing Receivable, Modifications [Line Items] | ||
Accruing | $ 2,714 | $ 1,743 |
Nonaccrual | 2,330 | 5,554 |
Total | 5,044 | 7,297 |
Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 1,035 | 1,173 |
Nonaccrual | 0 | 0 |
Total | 1,035 | 1,173 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 391 | 422 |
Nonaccrual | 430 | 465 |
Total | 821 | 887 |
SBA commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccrual | 1,627 | 3,240 |
Total | 1,627 | 3,240 |
Multifamily | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 354 | |
Nonaccrual | 0 | 482 |
Total | 354 | 482 |
Commercial Business | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 934 | 106 |
Nonaccrual | 0 | 1,367 |
Total | 934 | 1,473 |
Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 42 | |
Nonaccrual | 273 | 0 |
Total | $ 273 | $ 42 |
LOANS AND ALLOWANCE FOR LOAN_12
LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) item | Sep. 30, 2020 USD ($) item | |
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | |||
Number of Loans | item | 1 | 1 | 13 |
Pre-Modification Principal Balance | $ 397 | $ 126 | $ 7,368 |
Post-Modification Principal Balance | $ 397 | $ 126 | $ 7,369 |
Residential real estate | |||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | |||
Number of Loans | item | 1 | ||
Pre-Modification Principal Balance | $ 1,099 | ||
Post-Modification Principal Balance | $ 1,100 | ||
Commercial Real Estate [Member] | |||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | |||
Number of Loans | item | 1 | ||
Pre-Modification Principal Balance | $ 3,832 | ||
Post-Modification Principal Balance | $ 3,832 | ||
Multifamily | |||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | |||
Number of Loans | item | 2 | ||
Pre-Modification Principal Balance | $ 700 | ||
Post-Modification Principal Balance | $ 700 | ||
Commercial Business | |||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | |||
Number of Loans | item | 1 | ||
Pre-Modification Principal Balance | $ 126 | ||
Post-Modification Principal Balance | $ 126 | ||
SBA commercial business | |||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | |||
Number of Loans | item | 1 | ||
Pre-Modification Principal Balance | $ 397 | ||
Post-Modification Principal Balance | $ 397 | ||
Commercial business | |||
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items] | |||
Number of Loans | item | 9 | ||
Pre-Modification Principal Balance | $ 1,737 | ||
Post-Modification Principal Balance | $ 1,737 |
LOANS AND ALLOWANCE FOR LOAN_13
LOANS AND ALLOWANCE FOR LOAN LOSSES - Changes in Carrying value accounted for fair value of the loans (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Balance, beginning of period | $ 4,447,000 | ||
Balance, end of period | 3,790,000 | $ 4,447,000 | |
Small Business Administration Loans | |||
Balance, beginning of period | 4,447,000 | 3,748,000 | $ 3,030,000 |
Servicing rights capitalized | 846,000 | 1,980,000 | 1,450,000 |
Amortization | (1,287,000) | (1,215,000) | (848,000) |
Direct write-offs | (43,000) | (92,000) | |
Change in valuation allowance | (173,000) | 26,000 | 116,000 |
Balance, end of period | 3,790,000 | 4,447,000 | 3,748,000 |
Mortgage Servicing Rights. | |||
Balance, beginning of period | 49,579,000 | 21,703,000 | 934,000 |
Servicing rights capitalized | 11,161,000 | 36,679,000 | 24,058,000 |
Loan repayments | (7,539,000) | (9,555,000) | (1,542,000) |
Changes in valuation model inputs or assumptions | 10,062,000 | 752,000 | (1,747,000) |
Balance, end of period | 63,263,000 | 49,579,000 | $ 21,703,000 |
Nonresidential MSR | |||
Balance, beginning of period | 0 | ||
Servicing rights capitalized | 160,000 | ||
Amortization | (19,000) | ||
Direct write-offs | 0 | ||
Change in valuation allowance | 0 | ||
Balance, end of period | $ 141,000 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_14
LOANS AND ALLOWANCE FOR LOAN LOSSES - Key assumptions used to estimate the fair value of the loans (Details) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Maximum | ||
Discount rate | 25% | 22.34% |
Prepayment rate | 29.26% | 24.51% |
Maximum | Mortgage Servicing Rights. | ||
Discount rate | 14.50% | 10% |
Prepayment rate | 74.89% | 43.27% |
Minimum | ||
Discount rate | 6.90% | 4.57% |
Prepayment rate | 7.08% | 8.30% |
Minimum | Mortgage Servicing Rights. | ||
Discount rate | 9.50% | 8.50% |
Prepayment rate | 6.01% | 6.04% |
Weighted Average | ||
Discount rate | 12.71% | 9.97% |
Prepayment rate | 15.27% | 15.98% |
Weighted Average | Mortgage Servicing Rights. | ||
Discount rate | 9.51% | 8.51% |
Prepayment rate | 6.63% | 10% |
LOANS AND ALLOWANCE FOR LOAN_15
LOANS AND ALLOWANCE FOR LOAN LOSSES - SBA Loan Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | |||
Balance, beginning of period | $ 6 | $ 32 | $ 148 |
Additions (reductions) charged to earnings | 216 | 66 | (116) |
Write-downs charged against allowance | (43) | (92) | 0 |
Balance, end of period | $ 179 | $ 6 | $ 32 |
LOANS AND ALLOWANCE FOR LOAN_16
LOANS AND ALLOWANCE FOR LOAN LOSSES - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2020 USD ($) | Jun. 30, 2020 USD ($) | Mar. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) item | Sep. 30, 2020 USD ($) item | |
Loans and Allowance for Loan Losses | |||||||||||||||
Number of Loans | item | 1 | 1 | 13 | ||||||||||||
Loans and leases receivable impaired commitment to lend | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | |||||||||||
Financing receivable allowance for credit losses, Write-downs | 1,097,000 | $ 1,124,000 | 1,170,000 | ||||||||||||
Provision (credit) for loan losses | 880,000 | $ 532,000 | $ (30,000) | $ 526,000 | $ 8,000 | $ (2,730,000) | $ 287,000 | $ 668,000 | 2,772,000 | $ 2,980,000 | $ 1,705,000 | $ 505,000 | 1,908,000 | (1,767,000) | 7,962,000 |
Impaired financing receivable, Unpaid principal balance | 16,071,000 | 18,869,000 | 17,713,000 | 16,071,000 | 18,869,000 | 17,713,000 | |||||||||
Net servicing income | 2,425,000 | 2,171,000 | $ 1,806,000 | ||||||||||||
Escrow balances maintained with foregoing loan servicing and other liabilities | 40,500,000 | 40,500,000 | |||||||||||||
Other Real Estate | 0 | 0 | |||||||||||||
Commercial Real Estate [Member] | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Number of Loans | item | 1 | ||||||||||||||
Financing receivable allowance for credit losses, Write-downs | 0 | 0 | $ 102,000 | ||||||||||||
Impaired financing receivable, Unpaid principal balance | 982,000 | 1,092,000 | 1,185,000 | 982,000 | 1,092,000 | $ 1,185,000 | |||||||||
Residential real estate | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Number of Loans | item | 1 | ||||||||||||||
Financing receivable allowance for credit losses, Write-downs | 23,000 | 11,000 | $ 36,000 | ||||||||||||
Impaired financing receivable, Unpaid principal balance | 2,524,000 | 3,616,000 | 5,872,000 | 2,524,000 | $ 3,616,000 | 5,872,000 | |||||||||
Commercial Business | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Number of Loans | item | 1 | ||||||||||||||
Financing receivable allowance for credit losses, Write-downs | 91,000 | $ 0 | 38,000 | ||||||||||||
Impaired financing receivable, Unpaid principal balance | 1,189,000 | 1,559,000 | 1,675,000 | 1,189,000 | 1,559,000 | 1,675,000 | |||||||||
Bank Servicing | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Revenue from Contract with Customer | 93,000 | 88,000 | 54,000 | ||||||||||||
Banking | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Revenue from Contract with Customer | 2,518,000 | 2,259,000 | 1,860,000 | ||||||||||||
SBA | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Impaired financing receivable, Unpaid principal balance | 238,900,000 | 244,800,000 | $ 209,100,000 | 238,900,000 | 244,800,000 | 209,100,000 | |||||||||
Troubled Debt Restructuring | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Loans and leases receivable allowance covered | 161,000 | 161,000 | |||||||||||||
Financing receivable allowance for credit losses, Write-downs | 0 | 457,000 | 0 | ||||||||||||
Provision (credit) for loan losses | 161,000 | 0 | 538,000 | ||||||||||||
Mortgage Servicing Rights. | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Impaired financing receivable, Unpaid principal balance | 4,880,000,000 | $ 4,640,000,000 | 4,880,000,000 | 4,640,000,000 | |||||||||||
Revenue from Contract with Customer | 9,000,000 | $ 6,500,000 | $ 621,000 | ||||||||||||
Escrow balances maintained with foregoing loan servicing and other liabilities | 46,000,000 | 46,000,000 | |||||||||||||
Nonresidential MSR | |||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||
Impaired financing receivable, Unpaid principal balance | $ 44,600,000 | 44,600,000 | |||||||||||||
Revenue from Contract with Customer | $ 92,000 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
PREMISES AND EQUIPMENT | |||
Property, Plant and Equipment, Gross | $ 39,272 | $ 38,059 | |
Less: accumulated depreciation | (12,172) | (10,390) | |
Property, Plant and Equipment, Net, Total | 27,100 | 27,669 | |
Property, Plant and Equipment [Member] | |||
PREMISES AND EQUIPMENT | |||
Depreciation expense | 2,125 | 2,023 | $ 1,576 |
Land and land improvements [Member] | |||
PREMISES AND EQUIPMENT | |||
Property, Plant and Equipment, Gross | 5,328 | 4,561 | |
Office buildings [Member] | |||
PREMISES AND EQUIPMENT | |||
Property, Plant and Equipment, Gross | 23,942 | 23,826 | |
Leasehold improvements [Member] | |||
PREMISES AND EQUIPMENT | |||
Property, Plant and Equipment, Gross | 66 | 66 | |
Furniture, fixtures and equipment [Member] | |||
PREMISES AND EQUIPMENT | |||
Property, Plant and Equipment, Gross | 9,187 | 9,206 | |
Construction in Progress [Member] | |||
PREMISES AND EQUIPMENT | |||
Property, Plant and Equipment, Gross | $ 749 | $ 400 |
PREMISES AND EQUIPMENT - Additi
PREMISES AND EQUIPMENT - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
PREMISES AND EQUIPMENT | ||||||||||||||||
Lease expiration term | 10 years | |||||||||||||||
Sale leaseback transaction, deferred gain, remaining balance | $ 218,000 | |||||||||||||||
Gain realized on the sale of the property | $ 471,000 | |||||||||||||||
Noninterest income | $ 4,531,000 | $ 10,033,000 | $ 20,072,000 | $ 16,591,000 | $ 16,495,000 | $ 18,785,000 | $ 38,973,000 | $ 46,183,000 | $ 57,024,000 | $ 46,962,000 | $ 11,133,000 | $ 18,232,000 | 51,227,000 | $ 120,436,000 | $ 133,351,000 | |
Bank | ||||||||||||||||
PREMISES AND EQUIPMENT | ||||||||||||||||
Gain realized on the sale of the property | 307,000 | |||||||||||||||
Noninterest income | $ 164,000 |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
OTHER REAL ESTATE OWNED. | |||
Balance as of October 1 | $ 1,728 | $ 1,728 | $ 1,893 |
Transfers from loans to OREO | 426 | 426 | |
Transfers from OREO to premises and equipment | (721) | ||
Sales | (804) | (426) | (165) |
Balance as of September 30 | $ 203 | $ 1,728 | $ 1,728 |
OTHER REAL ESTATE OWNED - Sched
OTHER REAL ESTATE OWNED - Schedule Of (Gain) Loss On Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
OTHER REAL ESTATE OWNED. | |||
Net (gain)/loss on sales | $ 115 | $ (74) | $ (16) |
Operating expenses, net of rental income | 0 | 10 | 15 |
Profit (Loss) from Real Estate Operations | $ 115 | $ (64) | $ (1) |
OTHER REAL ESTATE OWNED - Addit
OTHER REAL ESTATE OWNED - Additional Information (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Other real estate | $ 0 | |
Residential real estate | ||
Real estate acquired through foreclosure | $ 204,000 | $ 124,000 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES - Changes in the carrying amount of goodwill - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
GOODWILL AND OTHER INTANGIBLES | |||
Beginning balance | $ 9,848 | $ 9,848 | $ 9,848 |
Acquisition of Dearmin/FNBO | 0 | 0 | 0 |
Ending balance | $ 9,848 | $ 9,848 | $ 9,848 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES - Summary of other intangible assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Goodwill and intangible assets | ||
Less accumulated amortization | $ (4,019) | $ (3,806) |
Ending balance | 775 | 988 |
Core deposit intangible acquired in Community First acquisition | ||
Goodwill and intangible assets | ||
Core deposit intangible acquired | 2,741 | 2,741 |
Core deposit intangible acquired in First Federal branch acquisition | ||
Goodwill and intangible assets | ||
Core deposit intangible acquired | 566 | 566 |
Core deposit intangible acquired in Dearmin/FNBO acquisition | ||
Goodwill and intangible assets | ||
Core deposit intangible acquired | $ 1,487 | $ 1,487 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES - Schedule of intangible assets amortization expenses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
GOODWILL AND OTHER INTANGIBLES | |||
Amortization expense | $ 214 | $ 214 | $ 214 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLES - Estimated amortization expense for the core deposit intangibles (Detail) $ in Thousands | Sep. 30, 2022 USD ($) |
GOODWILL AND OTHER INTANGIBLES | |
2023 | $ 214 |
2024 | 163 |
2025 | 163 |
2026 | 163 |
2027 | 72 |
Total | $ 775 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLES - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
GOODWILL AND OTHER INTANGIBLES | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Deposits | ||
Noninterest-bearing demand deposits | $ 340,172 | $ 291,039 |
NOW accounts | 343,296 | 315,169 |
Money market accounts | 238,219 | 222,972 |
Savings accounts | 171,779 | 162,033 |
Retail time deposits | 129,864 | 136,309 |
Brokered and reciprocal certificates of deposit | 292,504 | 100,058 |
Total deposits | $ 1,515,834 | $ 1,227,580 |
DEPOSITS - Scheduled maturities
DEPOSITS - Scheduled maturities of certificates of deposit (Detail) $ in Thousands | Sep. 30, 2022 USD ($) |
Deposits | |
2023 | $ 368,081 |
2024 | 28,960 |
2025 | 8,213 |
2026 | 6,868 |
2027 | 10,246 |
Total | $ 422,368 |
DEPOSITS - Additional informati
DEPOSITS - Additional information (Detail) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Deposits | ||
FDIC | $ 250,000 | |
Time deposits, at or above FDIC insurance limit | 32,600,000 | $ 29,800,000 |
Related party deposit liabilities | $ 15,300,000 | $ 14,700,000 |
FEDERAL FUNDS PURCHASED (Detail
FEDERAL FUNDS PURCHASED (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
FEDERAL FUNDS PURCHASED | ||
Line of credit expiry date | Jun. 30, 2021 | |
Discretionary line of credit facility | ||
FEDERAL FUNDS PURCHASED | ||
Federal funds purchased | $ 22 | |
Line of credit | ||
FEDERAL FUNDS PURCHASED | ||
Federal funds purchased | 15 | |
Federal funds outstanding | 0 | $ 0 |
Line of credit | Federal fund purchased | ||
FEDERAL FUNDS PURCHASED | ||
Federal funds purchased | $ 20 | |
Percentage of Bank's equity capital | 25% |
BORROWINGS FROM FEDERAL HOME _3
BORROWINGS FROM FEDERAL HOME LOAN BANK - Borrowings from the FHLB (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
BORROWINGS FROM FEDERAL HOME LOAN BANK | ||
2022 Weighted Average Rate | 0% | 2.01% |
2023 Weighted Average Rate | 3% | |
2024 Weighted Average Rate | 2.02% | |
2025 Weighted Average Rate | 1.51% | 1.51% |
2026 Weighted Average Rate | 1.13% | 1.13% |
2027 and beyond Weighted Average Rate | 1.27% | 0.77% |
2022 Amount | $ 0 | $ 10,000 |
2023 Amount | 130,000 | |
2024 Amount | 50,000 | |
2025 Amount | 10,000 | 10,000 |
2026 Amount | 20,000 | 20,000 |
2027 and beyond Amount | 135,000 | 160,000 |
Total advances | $ 295,000 | $ 250,000 |
Line of credit balance (Weighted Average Rate) | 3.45% | 0.43% |
Line of credit facility maximum amount outstanding | $ 12,303 | |
Total borrowings from FHLB | $ 307,303 | $ 250,000 |
BORROWINGS FROM FEDERAL HOME _4
BORROWINGS FROM FEDERAL HOME LOAN BANK - Additional Information (Detail) - USD ($) | Sep. 30, 2022 | Jan. 21, 2022 | Sep. 30, 2021 | May 31, 2017 | Jun. 19, 2014 |
BORROWINGS FROM FEDERAL HOME LOAN BANK | |||||
Carrying value of loan | $ 1,457,294,000 | $ 1,094,635,000 | |||
Securities available for sale, at fair value | $ 316,517,000 | 206,681,000 | |||
Debt Securities, Available-for-Sale, Pledged Status [Extensible Enumeration] | us-gaap:AssetPledgedAsCollateralMember | ||||
Federal Home Loan Bank borrowings | $ 307,303,000 | $ 250,000,000 | |||
Federal Home Loan Bank Advances [Member] | |||||
BORROWINGS FROM FEDERAL HOME LOAN BANK | |||||
Securities available for sale, at fair value | 58,600,000 | ||||
Investment Type Categorizations | |||||
BORROWINGS FROM FEDERAL HOME LOAN BANK | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 1,900,000 | ||||
Letter of credit | |||||
BORROWINGS FROM FEDERAL HOME LOAN BANK | |||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 2,200,000 | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | 2,100,000 | ||||
Letter of credit | Securities investment | |||||
BORROWINGS FROM FEDERAL HOME LOAN BANK | |||||
Federal Home Loan Bank borrowings | $ 3,300,000 | ||||
Overdraft line of credit agreement | Securities investment | |||||
BORROWINGS FROM FEDERAL HOME LOAN BANK | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | 12,300,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 25,000,000 | ||||
Residential mortgage loans | Overdraft Line of Credit Agreement | |||||
BORROWINGS FROM FEDERAL HOME LOAN BANK | |||||
Carrying value of loan | 183,700,000 | ||||
Commercial real estate | Commercial real estate | |||||
BORROWINGS FROM FEDERAL HOME LOAN BANK | |||||
Carrying value of loan | $ 695,900,000 |
OTHER BORROWINGS - Additional I
OTHER BORROWINGS - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Mar. 18, 2022 | Sep. 20, 2018 | Sep. 20, 2018 | Sep. 30, 2022 | Sep. 30, 2021 | |
PPPLF | |||||
OTHER BORROWINGS | |||||
Line of credit facility, fixed interest rate | 0.35% | ||||
Borrowings | $ 0 | $ 0 | |||
Subordinated debt one | |||||
OTHER BORROWINGS | |||||
Principal amount | $ 20,000,000 | $ 20,000,000 | |||
Fixed interest rate | 6.02% | 6.02% | |||
Unamortized debt issuance costs | 68,000 | $ 135,000 | |||
Amortization period | 5 years | ||||
Subordinated debt one | Secured Overnight Financing Rate ("SOFR") | |||||
OTHER BORROWINGS | |||||
Spread on variable rate | 310% | ||||
Subordinated debt two | |||||
OTHER BORROWINGS | |||||
Principal amount | $ 31,000,000 | ||||
Fixed interest rate | 4.50% | ||||
Unamortized debt issuance costs | $ 715,000 | ||||
Amortization period | 5 years | ||||
Subordinated debt two | Secured Overnight Financing Rate ("SOFR") | |||||
OTHER BORROWINGS | |||||
Spread on variable rate | 276% |
DEFERRED COMPENSATION PLANS - D
DEFERRED COMPENSATION PLANS - Deferred Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Officer | |||
DEFERRED COMPENSATION PLANS | |||
Deferred compensation expense (income) | $ 164 | $ 129 | $ (4) |
DEFERRED COMPENSATION PLANS -_2
DEFERRED COMPENSATION PLANS - Deferred Directors Fees Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Director | |||
DEFERRED COMPENSATION PLANS | |||
Deferred directors' fee expense | $ 202 | $ 166 | $ 187 |
DEFERRED COMPENSATION PLANS - A
DEFERRED COMPENSATION PLANS - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
DEFERRED COMPENSATION PLANS | |||
Accrued benefits | $ 500,000 | $ 336,000 | |
Description of deferred compensation arrangement with individual | The Company accrues interest on the deferred obligation at an annual rate equal to the prime rate for the immediately preceding calendar quarter plus 2%, but in no event at a rate in excess of 8% | ||
Agreement term | 10 years | ||
Director | |||
DEFERRED COMPENSATION PLANS | |||
Accrued benefits | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 |
BENEFIT PLANS - Contributions T
BENEFIT PLANS - Contributions To The Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
BENEFIT PLANS | |||
Company contributions to the plan | $ 1,366 | $ 1,633 | $ 1,420 |
BENEFIT PLANS - Compensation Ex
BENEFIT PLANS - Compensation Expense Recognized (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
BENEFIT PLANS | |||
Compensation expense | $ 0 | $ 0 | $ 0 |
BENEFIT PLANS - Additional Info
BENEFIT PLANS - Additional Information (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Sep. 15, 2021 | Oct. 06, 2008 $ / shares shares | Sep. 30, 2021 USD ($) shares | Sep. 30, 2022 USD ($) shares | |
BENEFIT PLANS | ||||
Total ESOP shares | shares | 610,089 | 335,958 | 306,202 | |
Employee stock ownership plan (per share) | $ / shares | $ 3.33 | |||
Stock split ratio | 0.33 | 3 | ||
Aggregate fair value of shares allocated to ESOP participants | $ | $ 9.4 | $ 7 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
STOCK-BASED COMPENSATION PLANS | |||
Stock option expense | $ 296 | $ 92 | $ 86 |
Restricted stock expense | $ 391 | $ 184 | $ 193 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Fair Value Of Options Granted (Details) - $ / shares | 12 Months Ended | 24 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | |
STOCK-BASED COMPENSATION PLANS | ||||
Expected dividend yield | 2.32% | 1.75% | ||
Risk-free interest rate | 1.55% | 2.13% | ||
Expected volatility | 27% | 14.60% | ||
Expected life of options | 7 years 1 month 6 days | 7 years 6 months | 7 years 6 months | |
Weighted average fair value at grant date | $ 7.03 | $ 6.13 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Stock Option Activity (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Number of Shares | |||
Outstanding at beginning of year | 217,074 | ||
Granted | 137,250 | ||
Exercised | (2,955) | (6,840) | (85,083) |
Outstanding at end of year | 351,369 | 217,074 | |
Vested and expected to vest | 351,369 | ||
Exercisable at end of year | 168,344 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of year | $ 16.58 | ||
Granted | 26.72 | ||
Exercised | 13.36 | ||
Outstanding at end of year | 20.57 | $ 16.58 | |
Vested and expected to vest | 20.57 | ||
Exercisable at end of year | $ 15.28 | ||
Weighted Average Remaining Contractual Term (Years) | |||
Outstanding at end of period | 6 years 9 months 18 days | ||
Vested and expected to vest | 6 years 9 months 18 days | ||
Exercisable at end of period | 4 years 8 months 12 days | ||
Aggregate Intrinsic Value | |||
Outstanding at end of period | $ 1,566,000 | ||
Vested and expected to vest | 1,566,000 | ||
Exercisable at end of period | $ 1,458,000 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS - Non vested Restricted Shares (Details) - Restricted Stock - $ / shares | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Number of Shares | ||||
Nonvested | 17,799 | |||
Granted | 22,000 | 45,750 | ||
Vested | (12,225) | (13,125) | (12,258) | |
Nonvested | 51,324 | 17,799 | ||
Weighted Average Grant Date Fair Value | ||||
Nonvested | $ 16.72 | |||
Granted | 26.72 | |||
Vested | 14.88 | |||
Nonvested | $ 26.07 | $ 16.72 |
STOCK-BASED COMPENSATION PLAN_6
STOCK-BASED COMPENSATION PLANS - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Terms of award | ten years | ||||
Proceeds from exercise of stock options | $ 27,000 | $ 148,000 | |||
Compensation expense | $ 0 | 0 | 0 | ||
Equity Incentive Plan 2016 | |||||
Aggregated number of shares in stock options | 264,000 | ||||
Common stock available under incentive plan | 4,560 | ||||
Incentive stock options granted | $ 100,000 | ||||
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 | ||||
2021 Plan | Maximum | |||||
Vesting period | 5 years | ||||
2021 Plan | Minimum | |||||
Vesting period | 1 year | ||||
Equity Incentive Plan 2010 | |||||
Common stock available under incentive plan | 0 | ||||
Employee Stock Option | |||||
Intrinsic value of stock options exercised | $ 31,000 | 50,000 | 1,400,000 | ||
Unrecognized compensation expenses related to nonvested stock options | $ 777,000 | ||||
weighted average period of compensation expense (in years) | 4 years | ||||
Proceeds from exercise of stock options | $ 0 | 27,000 | 148,000 | ||
Tax benefit from the exercise of stock options | $ 8,000 | 10,000 | 134,000 | ||
Employee Stock Option | Equity Incentive Plan 2016 | |||||
Aggregated number of shares in stock options | 198,000 | ||||
Common stock available under incentive plan | 3,060 | ||||
Employee Stock Option | 2021 Plan | |||||
Common stock available under incentive plan | 129,793 | ||||
Restricted Stock | |||||
Number of restricted shares granted | 22,000 | 45,750 | |||
Unrecognized compensation expenses related to nonvested stock options | $ 969,000 | ||||
weighted average period of compensation expense (in years) | 3 years 11 months 19 days | ||||
Fair value of restricted shares | $ 327,000 | $ 277,000 | $ 271,000 | ||
Restricted shares vested | 12,225 | 13,125 | 12,258 | ||
Restricted Stock | Maximum | |||||
Vesting period | 5 years | ||||
Restricted Stock | Minimum | |||||
Vesting period | 1 year | ||||
Restricted Stock | Equity Incentive Plan 2016 | |||||
Aggregated number of shares in stock options | 66,000 | ||||
Common stock available under incentive plan | 1,500 | ||||
Restricted Stock | 2021 Plan | |||||
Number of restricted shares granted | 45,750 | 89,015 | |||
Common stock available under incentive plan | 43,265 | ||||
Stock options | |||||
Number of stock options granted | 66,000 | ||||
Terms of award | ten years | ||||
Stock options | Maximum | |||||
Vesting period | 5 years | ||||
Stock options | Minimum | |||||
Vesting period | 1 year | ||||
Stock options | 2021 Plan | |||||
Number of stock options granted | 137,250 |
INCOME TAXES - Consolidated Inc
INCOME TAXES - Consolidated Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
INCOME TAXES | |||||||||||||||
Current | $ 283 | $ 2,166 | $ 8,295 | ||||||||||||
Valuation allowance | (78) | (34) | 193 | ||||||||||||
Deferred | 2,173 | 7,865 | 4,173 | ||||||||||||
Income tax expense | $ 9 | $ (61) | $ 1,619 | $ 811 | $ 958 | $ 817 | $ 3,695 | $ 4,527 | $ 7,257 | $ 5,540 | $ (774) | $ 638 | $ 2,378 | $ 9,997 | $ 12,661 |
INCOME TAXES - Reconciliation O
INCOME TAXES - Reconciliation Of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
INCOME TAXES | |||||||||||||||
Provision at federal statutory rate | $ 3,953 | $ 8,308 | $ 9,816 | ||||||||||||
State income tax-net of federal tax benefit | 297 | 901 | 1,815 | ||||||||||||
Tax-exempt interest income | (1,314) | (1,045) | (962) | ||||||||||||
Bank owned life insurance | (209) | (194) | (154) | ||||||||||||
Captive insurance net premiums | (375) | (303) | (295) | ||||||||||||
Increase (decrease) in federal deferred tax valuation allowance | (78) | (20) | 193 | ||||||||||||
Nondeductible officer compensation | 2,238 | 2,373 | |||||||||||||
Other | 104 | 112 | (125) | ||||||||||||
Income tax expense | $ 9 | $ (61) | $ 1,619 | $ 811 | $ 958 | $ 817 | $ 3,695 | $ 4,527 | $ 7,257 | $ 5,540 | $ (774) | $ 638 | $ 2,378 | $ 9,997 | $ 12,661 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets And Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
Deferred tax assets: | ||
Allowance for loan losses | $ 3,719 | $ 3,460 |
Operating lease liability | 1,100 | 1,430 |
Deferred compensation plans | 475 | 426 |
Equity incentive plans | 117 | 45 |
Other-than-temporary impairment loss on available for sale securities | 17 | 20 |
Interest on nonaccrual loans | 165 | 236 |
Loss on tax credit investments | 1,638 | 1,640 |
Unrealized loss on securities available for sale | 7,198 | |
Net operating loss carryforwards | 400 | |
Mark to market adjustments | 514 | 817 |
Other | 1,246 | 278 |
Gross deferred tax assets | 16,589 | 8,352 |
Valuation allowance | (1,570) | (1,648) |
Net deferred tax assets | 15,019 | 6,704 |
Deferred tax liabilities: | ||
Unrealized gain on securities available for sale | 0 | (2,366) |
Accumulated depreciation | (2,099) | (2,014) |
Operating lease right of use asset | (1,069) | (1,403) |
Installment sale | (349) | (360) |
Acquisition purchase accounting adjustments | (1,284) | (853) |
Mortgage servicing rights | (15,498) | (12,336) |
FHLB stock dividends | (71) | (85) |
Prepaid expenses | (776) | (829) |
Deferred loan fees and costs, net | (180) | (239) |
Others | (101) | (96) |
Deferred tax liabilities | (21,427) | (20,581) |
Net deferred tax liability | $ (6,408) | $ (13,877) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Federal statutory rate (in percent) | 21% | 21% | 21% |
Federal net operating loss carryforward not subject to expiration | $ 2,600,000 | ||
Deferred tax asses, valuation allowance | 1,570,000 | $ 1,648,000 | |
Tax credit investment | 7,400,000 | ||
Unrecognized income tax benefit | 0 | 0 | |
Retained earnings - substantially restricted | 162,985,000 | 150,185,000 | |
Unrecorded deferred income tax liability | 957,000 | 957,000 | |
Cumulative Effect Period Of Adoption Adjustment Member | |||
Retained earnings - substantially restricted | $ 4,600,000 | $ 4,600,000 | $ 166,000 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
LEASES | |||
Operating lease ,existence of option to extend | true | ||
ROU asset | $ 4,400 | $ 5,800 | |
Location of ROU asset | Other assets | Other assets | |
Lease liability | $ 4,554 | $ 5,900 | |
Location of lease liability | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | |
Lease expense | $ 1,100 | $ 2,000 | $ 1,900 |
Minimum | |||
LEASES | |||
Renewal term | 1 year | ||
Noncancelable operating leases terms | 3 years | ||
Maximum | |||
LEASES | |||
Renewal term | 20 years | ||
Noncancelable operating leases terms | 11 years |
LEASES - Components of lease ex
LEASES - Components of lease expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
LEASES | |||
Operating lease cost | $ 621 | $ 1,204 | $ 1,294 |
Short-term lease cost | 501 | 836 | 644 |
Total operating lease cost | $ 1,122 | $ 2,040 | $ 1,938 |
LEASES - Future minimum commitm
LEASES - Future minimum commitments due under these lease agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
LEASES | ||
2023 | $ 412 | |
2024 | 324 | |
2025 | 228 | |
2026 | 203 | |
2027 | 211 | |
Thereafter | 4,991 | |
Total lease payments | 6,369 | |
Less imputed interest | (1,815) | |
Total | $ 4,554 | $ 5,900 |
LEASES - Lease term, discount r
LEASES - Lease term, discount rate and supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
LEASES | |||
Weighted-average remaining lease term (years) | 23 years 8 months 12 days | 21 years 6 months | |
Weighted-average discount rate | 2.89% | 2.53% | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 607 | $ 1,253 | $ 1,221 |
ROU assets obtained in exchange for lease obligations: | |||
Operating leases | $ 275 | $ 2,038 | $ 9,083 |
LEASES - Lessor future minimum
LEASES - Lessor future minimum lease payments (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Lessor | |
2023 | $ 469 |
2024 | 469 |
2025 | 354 |
2026 | 8 |
2027 | 8 |
2028 and thereafter | 5 |
Total | $ 1,313 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
COMMITMENTS AND CONTINGENCIES | ||
Total commitments to extend credit | $ 327,764 | $ 192,806 |
Fixed rate | ||
COMMITMENTS AND CONTINGENCIES | ||
Total commitments to extend credit | 53,692 | 49,722 |
Adjustable rate | ||
COMMITMENTS AND CONTINGENCIES | ||
Total commitments to extend credit | 71,167 | 28,137 |
Guarantees of third-party revolving credit | ||
COMMITMENTS AND CONTINGENCIES | ||
Total commitments to extend credit | 286 | 177 |
Undisbursed portion of home equity lines of credit | ||
COMMITMENTS AND CONTINGENCIES | ||
Total commitments to extend credit | 105,208 | 35,995 |
Undisbursed portion of commercial and personal lines of credit | ||
COMMITMENTS AND CONTINGENCIES | ||
Total commitments to extend credit | 52,146 | 47,452 |
Undisbursed portion of construction loans in process | ||
COMMITMENTS AND CONTINGENCIES | ||
Total commitments to extend credit | $ 45,265 | $ 31,323 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
COMMITMENTS AND CONTINGENCIES | |||
Letters of credit | $ 8,200,000 | $ 8,300,000 | |
Amount of loss contingency | 0 | 0 | |
Loss contingency for potential restitution | 390,000 | ||
Fixed rate | |||
COMMITMENTS AND CONTINGENCIES | |||
Reserve for loan repurchases or indemnifications | 435,000 | 338,000 | |
Provisions for loan repurchases or indemnifications | $ 672,000 | $ 595,000 | $ 614,000 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Notional Amount | $ 108,952 | $ 622,928 |
Asset Derivatives | 1,030 | 3,632 |
Liability Derivatives | $ 427 | $ 635 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
Interest rate lock commitments | ||
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Notional Amount | $ 48,952 | $ 331,178 |
Asset Derivatives | 158 | 2,167 |
Liability Derivatives | 396 | 600 |
Forward mortgage loan sale contracts | ||
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Notional Amount | 60,000 | 291,750 |
Asset Derivatives | 872 | 1,465 |
Liability Derivatives | $ 31 | $ 35 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS- Income (loss) Related To Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Income (loss) related to derivative financial instruments | $ 18,593 | $ (9,230) | $ (10,744) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Fees and Commissions, Mortgage Banking and Servicing | Fees and Commissions, Mortgage Banking and Servicing | Fees and Commissions, Mortgage Banking and Servicing |
Interest rate lock commitments | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Income (loss) related to derivative financial instruments | $ (1,805) | $ (13,370) | $ 11,668 |
Forward mortgage loan sale contracts | |||
DERIVATIVE FINANCIAL INSTRUMENTS | |||
Income (loss) related to derivative financial instruments | $ 20,398 | $ 4,140 | $ (22,412) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
DERIVATIVE FINANCIAL INSTRUMENTS | ||
Cash collateral derivative counterparty obligations | $ 2.4 | $ 2.4 |
FAIR VALUE MEASUREMENTS - Balan
FAIR VALUE MEASUREMENTS - Balances of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | $ 316,517 | $ 206,681 |
Residential mortgage loans held for sale - fair value option elected | 38,579 | 167,813 |
Derivative assets (included in other assets) | $ 1,030 | $ 3,632 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Residential mortgage loan servicing rights, at fair value | $ 63,263 | $ 49,579 |
Derivative liabilities (included in other liabilities) | 427 | 635 |
SBA loan servicing rights | 3,790 | 4,447 |
Agency mortgage-backed | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 27,500 | 8,384 |
Agency CMO. | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 14,821 | 13,530 |
Privately-issued CMO | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 470 | 803 |
Privately-issued ABS | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 569 | 772 |
SBA certificates | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 12,012 | 2,138 |
Municipal bonds | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 233,850 | 180,804 |
Fair Value, Measurements, Recurring | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 316,517 | 206,681 |
Derivative assets (included in other assets) | 1,030 | $ 3,632 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | |
Equity securities (included in other assets) | 103 | $ 112 |
Residential mortgage loan servicing rights, at fair value | 63,263 | 49,579 |
Derivative liabilities (included in other liabilities) | 427 | 635 |
Fair Value, Measurements, Recurring | Residential mortgage loans held for sale - fair value option elected | ||
FAIR VALUE MEASUREMENTS | ||
Residential mortgage loans held for sale - fair value option elected | 38,579 | |
Fair Value, Measurements, Recurring | U.S. Treasury bills. | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 27,295 | 250 |
Fair Value, Measurements, Recurring | Agency mortgage-backed | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 27,500 | 8,384 |
Fair Value, Measurements, Recurring | Agency CMO. | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 14,821 | 13,530 |
Fair Value, Measurements, Recurring | Privately-issued CMO | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 470 | 803 |
Fair Value, Measurements, Recurring | Privately-issued ABS | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 569 | 772 |
Fair Value, Measurements, Recurring | SBA certificates | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 12,012 | 2,138 |
Fair Value, Measurements, Recurring | Municipal bonds | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 233,850 | 180,804 |
Fair Value, Measurements, Nonrecurring | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 2,910 | 4,248 |
Fair Value, Measurements, Nonrecurring | Residential real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 71 |
Fair Value, Measurements, Nonrecurring | Commercial real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | SBA commercial real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 2,574 | 4,169 |
Fair Value, Measurements, Nonrecurring | Multifamily | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Commercial business | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 46 | 0 |
Fair Value, Measurements, Nonrecurring | SBA commercial business | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 290 | 0 |
Fair Value, Measurements, Nonrecurring | Consumer | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 8 |
Fair Value, Measurements, Nonrecurring | SBA loan servicing rights | ||
FAIR VALUE MEASUREMENTS | ||
SBA loan servicing rights | 3,790 | 1,184 |
Level 1 | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Derivative assets (included in other assets) | 0 | |
Equity securities (included in other assets) | 103 | 112 |
Derivative liabilities (included in other liabilities) | 0 | |
SBA loan servicing rights | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Derivative assets (included in other assets) | 0 | 0 |
Equity securities (included in other assets) | 103 | 112 |
Residential mortgage loan servicing rights, at fair value | 0 | 0 |
Derivative liabilities (included in other liabilities) | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Residential mortgage loans held for sale - fair value option elected | ||
FAIR VALUE MEASUREMENTS | ||
Residential mortgage loans held for sale - fair value option elected | 0 | |
Level 1 | Fair Value, Measurements, Recurring | U.S. Treasury bills. | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Agency CMO. | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Privately-issued CMO | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Privately-issued ABS | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | SBA certificates | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Municipal bonds | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | Residential real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | Commercial real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | SBA commercial real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | Multifamily | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | Commercial business | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | SBA commercial business | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | Consumer | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | SBA loan servicing rights | ||
FAIR VALUE MEASUREMENTS | ||
SBA loan servicing rights | 0 | 0 |
Level 2 | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 316,517 | 206,681 |
Derivative assets (included in other assets) | 1,465 | |
Equity securities (included in other assets) | 0 | 0 |
Derivative liabilities (included in other liabilities) | 35 | |
SBA loan servicing rights | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 316,517 | 206,681 |
Derivative assets (included in other assets) | 872 | 1,465 |
Equity securities (included in other assets) | 0 | 0 |
Residential mortgage loan servicing rights, at fair value | 0 | 0 |
Derivative liabilities (included in other liabilities) | 31 | 35 |
Level 2 | Fair Value, Measurements, Recurring | Residential mortgage loans held for sale - fair value option elected | ||
FAIR VALUE MEASUREMENTS | ||
Residential mortgage loans held for sale - fair value option elected | 38,579 | |
Level 2 | Fair Value, Measurements, Recurring | U.S. Treasury bills. | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 27,295 | 250 |
Level 2 | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 27,500 | 8,384 |
Level 2 | Fair Value, Measurements, Recurring | Agency CMO. | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 14,821 | 13,530 |
Level 2 | Fair Value, Measurements, Recurring | Privately-issued CMO | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 470 | 803 |
Level 2 | Fair Value, Measurements, Recurring | Privately-issued ABS | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 569 | 772 |
Level 2 | Fair Value, Measurements, Recurring | SBA certificates | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 12,012 | 2,138 |
Level 2 | Fair Value, Measurements, Recurring | Municipal bonds | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 233,850 | 180,804 |
Level 2 | Fair Value, Measurements, Nonrecurring | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | Residential real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | Commercial real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | SBA commercial real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | Multifamily | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | Commercial business | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | SBA commercial business | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | Consumer | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | SBA loan servicing rights | ||
FAIR VALUE MEASUREMENTS | ||
SBA loan servicing rights | 0 | 0 |
Level 3 | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Derivative assets (included in other assets) | 2,167 | |
Equity securities (included in other assets) | 0 | 0 |
Derivative liabilities (included in other liabilities) | 600 | |
SBA loan servicing rights | 3,790 | 4,646 |
Level 3 | Fair Value, Measurements, Recurring | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Derivative assets (included in other assets) | 158 | 2,167 |
Equity securities (included in other assets) | 0 | 0 |
Residential mortgage loan servicing rights, at fair value | 63,263 | 49,579 |
Derivative liabilities (included in other liabilities) | 396 | 600 |
Level 3 | Fair Value, Measurements, Recurring | Residential mortgage loans held for sale - fair value option elected | ||
FAIR VALUE MEASUREMENTS | ||
Residential mortgage loans held for sale - fair value option elected | 0 | |
Level 3 | Fair Value, Measurements, Recurring | U.S. Treasury bills. | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Agency CMO. | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Privately-issued CMO | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Privately-issued ABS | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | SBA certificates | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Municipal bonds | ||
FAIR VALUE MEASUREMENTS | ||
Securities available for sale, at fair value | 0 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 2,910 | 4,248 |
Level 3 | Fair Value, Measurements, Nonrecurring | Residential real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 71 |
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | SBA commercial real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 2,574 | 4,169 |
Level 3 | Fair Value, Measurements, Nonrecurring | Multifamily | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial business | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 46 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | SBA commercial business | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 290 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | Consumer | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 8 |
Level 3 | Fair Value, Measurements, Nonrecurring | SBA loan servicing rights | ||
FAIR VALUE MEASUREMENTS | ||
SBA loan servicing rights | $ 3,790 | $ 1,184 |
FAIR VALUE MEASUREMENTS - Recon
FAIR VALUE MEASUREMENTS - Reconciliation of derivative assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
FAIR VALUE MEASUREMENTS | |||
Beginning balance | $ 1,567 | $ 14,937 | $ 3,269 |
Unrealized gains (losses) recognized in earnings, net of settlements | (1,805) | (13,370) | 11,668 |
Ending balance | $ (238) | $ 1,567 | $ 14,937 |
FAIR VALUE MEASUREMENTS - Signi
FAIR VALUE MEASUREMENTS - Significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a recurring basis (Details) - Interest rate lock commitments | Sep. 30, 2022 | Sep. 30, 2021 |
Pull-through rate | Minimum | ||
FAIR VALUE MEASUREMENTS | ||
Fixed interest rate | 50% | 58% |
Pull-through rate | Maximum | ||
FAIR VALUE MEASUREMENTS | ||
Fixed interest rate | 100% | 100% |
Pull-through rate | Weighted Average | ||
FAIR VALUE MEASUREMENTS | ||
Fixed interest rate | 78% | 83% |
Direct costs to close | Minimum | ||
FAIR VALUE MEASUREMENTS | ||
Fixed interest rate | 0% | 0.37% |
Direct costs to close | Maximum | ||
FAIR VALUE MEASUREMENTS | ||
Fixed interest rate | 4% | 1.74% |
Direct costs to close | Weighted Average | ||
FAIR VALUE MEASUREMENTS | ||
Fixed interest rate | 0.70% | 0.86% |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of reconciliation of MSRs measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (Details) - Mortgage Service Rights - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 49,579 | $ 21,703 | $ 934 |
Issuances (loans sold with servicing retained) | 11,161 | 36,679 | 24,058 |
Net settlements | (7,539) | (9,555) | (1,542) |
Unrealized gains (losses) included in earnings | 10,062 | 752 | (1,747) |
Ending balance | $ 63,263 | $ 49,579 | $ 21,703 |
FAIR VALUE MEASUREMENTS - Sum_2
FAIR VALUE MEASUREMENTS - Summary of information about significant unobservable inputs (Level 3) used in the valuation of MSRs measured at fair value on a recurring basis (Level 3) (Details) | Sep. 30, 2022 | Sep. 30, 2021 |
Discount rate | ||
FAIR VALUE MEASUREMENTS | ||
Mortgage servicing rights, measurement input | 8.51 | |
Discount rate | Minimum | ||
FAIR VALUE MEASUREMENTS | ||
Mortgage servicing rights, measurement input | 9.50 | 8.50 |
Discount rate | Maximum | ||
FAIR VALUE MEASUREMENTS | ||
Mortgage servicing rights, measurement input | 14.50 | |
Discount rate | Weighted Average | ||
FAIR VALUE MEASUREMENTS | ||
Mortgage servicing rights, measurement input | 9.51 | 10 |
Prepayment rate | Minimum | ||
FAIR VALUE MEASUREMENTS | ||
Mortgage servicing rights, measurement input | 6.01 | 6.04 |
Prepayment rate | Maximum | ||
FAIR VALUE MEASUREMENTS | ||
Mortgage servicing rights, measurement input | 74.89 | 43.27 |
Prepayment rate | Weighted Average | ||
FAIR VALUE MEASUREMENTS | ||
Mortgage servicing rights, measurement input | 6.63 | 10 |
FAIR VALUE MEASUREMENTS - Provi
FAIR VALUE MEASUREMENTS - Provisions For Loan Losses Recognized For Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Provision for loan losses recognized | $ 1,908 | $ (1,767) | $ 7,962 |
Impaired Loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Provision for loan losses recognized | $ 2,421 | $ 381 | $ 2,424 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Impairment Charges to Write Down Loan Servicing Rights at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
FAIR VALUE MEASUREMENTS | |||
Charges (reductions) to write down SBA loan servicing rights | $ 216 | $ 66 | $ (116) |
FAIR VALUE MEASUREMENTS - Sum_3
FAIR VALUE MEASUREMENTS - Summary of Aggregate Fair Value and the Aggregate Remaining Principal Balance for Residential Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 |
FAIR VALUE MEASUREMENTS | ||
Residential mortgage loans held for sale Aggregate Fair Value | $ 38,579 | $ 167,813 |
Residential mortgage loans held for sale Aggregate Principal Balance | 38,517 | 163,158 |
Residential mortgage loans held for sale Difference | $ 62 | $ 4,655 |
FAIR VALUE MEASUREMENTS - Sum_4
FAIR VALUE MEASUREMENTS - Summary of Gains and Losses and Interest Included in Earnings Related to Financial Assets Measured at Fair Value Under the Fair Value Options (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
FAIR VALUE MEASUREMENTS | |||
Total gains and interest included in earnings | $ 3,604 | $ 7,712 | $ 12,530 |
Interest income | |||
FAIR VALUE MEASUREMENTS | |||
Interest income | 3,989 | 5,695 | 5,026 |
Mortgage Banking | |||
FAIR VALUE MEASUREMENTS | |||
Gains (losses) - included in mortgage banking income | $ (385) | $ 2,017 | $ 7,504 |
FAIR VALUE MEASUREMENTS - Sum_5
FAIR VALUE MEASUREMENTS - Summary of fair value of loans measured using an entry price notion (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Financial assets: | ||
Cash and due from banks | $ 18,312 | $ 14,191 |
Interest-bearing deposits with banks | 23,353 | 19,237 |
Securities available for sale, at fair value | 316,517 | 206,681 |
Securities held to maturity | 1,558 | 1,837 |
Loans, net | 1,436,555 | 1,075,936 |
SBA loan servicing rights | 3,790 | 4,447 |
Financial liabilities: | ||
Deposits | 1,515,834 | 1,227,580 |
Federal Home Loan Bank borrowings | 307,303 | 250,000 |
Accrued interest payable | 1,302 | 258 |
Advance payments by borrowers for taxes and insurance | 1,207 | 2,076 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 18,312 | 14,191 |
Interest-bearing deposits with banks | 23,353 | 19,237 |
Interest-bearing time deposits | 0 | 0 |
Securities available for sale, at fair value | 0 | 0 |
Securities held to maturity | 0 | 0 |
Residential mortgage loans held for sale | 0 | 0 |
Single tenant net lease loans held for sale | 0 | |
SBA loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
SBA loan servicing rights | 0 | 0 |
Residential mortgage loan servicing rights | 0 | 0 |
Nonresidential mortgage loan servicing rights | 0 | |
Derivative assets (included in other assets) | 0 | |
Equity securities (included in other assets) | 103 | 112 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Federal Home Loan Bank borrowings | 0 | 0 |
Subordinated note | 0 | 0 |
Accrued interest payable | 0 | 0 |
Advance payments by borrowers for taxes and insurance | 0 | 0 |
Derivative liabilities (included in other liabilities) | 0 | |
Level 2 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Interest-bearing time deposits | 1,613 | 2,222 |
Securities available for sale, at fair value | 316,517 | 206,681 |
Securities held to maturity | 1,593 | 2,054 |
Residential mortgage loans held for sale | 38,579 | 167,813 |
Single tenant net lease loans held for sale | 0 | |
SBA loans held for sale | 24,010 | 27,312 |
Loans, net | 0 | 0 |
Accrued interest receivable | 8,332 | 6,243 |
SBA loan servicing rights | 0 | 0 |
Residential mortgage loan servicing rights | 0 | 0 |
Nonresidential mortgage loan servicing rights | 0 | |
Derivative assets (included in other assets) | 872 | |
Equity securities (included in other assets) | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Federal Home Loan Bank borrowings | 302,090 | 251,877 |
Subordinated note | 48,685 | 21,083 |
Accrued interest payable | 1,302 | 258 |
Advance payments by borrowers for taxes and insurance | 1,207 | 2,076 |
Derivative liabilities (included in other liabilities) | 31 | |
Level 3 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Interest-bearing time deposits | 0 | 0 |
Securities available for sale, at fair value | 0 | 0 |
Securities held to maturity | 0 | 0 |
Residential mortgage loans held for sale | 0 | 0 |
Single tenant net lease loans held for sale | 23,020 | |
SBA loans held for sale | 0 | 0 |
Loans, net | 1,366,096 | 1,124,226 |
Accrued interest receivable | 0 | 0 |
SBA loan servicing rights | 3,790 | 4,646 |
Residential mortgage loan servicing rights | 63,263 | 49,579 |
Nonresidential mortgage loan servicing rights | 141 | |
Derivative assets (included in other assets) | 158 | |
Equity securities (included in other assets) | 0 | 0 |
Financial liabilities: | ||
Deposits | 1,510,792 | 1,228,147 |
Federal Home Loan Bank borrowings | 0 | 0 |
Subordinated note | 0 | 0 |
Accrued interest payable | 0 | 0 |
Advance payments by borrowers for taxes and insurance | 0 | 0 |
Derivative liabilities (included in other liabilities) | 396 | |
Estimate of fair value measurement | ||
Financial assets: | ||
Cash and due from banks | 18,312 | 14,191 |
Interest-bearing deposits with banks | 23,353 | 19,237 |
Interest-bearing time deposits | 1,613 | 2,222 |
Securities available for sale, at fair value | 316,517 | 206,681 |
Securities held to maturity | 1,558 | 1,837 |
Residential mortgage loans held for sale | 38,579 | 167,813 |
Single tenant net lease loans held for sale | 23,020 | |
SBA loans held for sale | 24,107 | |
Loans, net | 1,436,555 | 1,075,936 |
FRB and FHLB stock | 20,004 | 19,258 |
Accrued interest receivable | 8,332 | 6,243 |
SBA loan servicing rights | 3,790 | 4,447 |
Residential mortgage loan servicing rights | 63,263 | 49,579 |
Nonresidential mortgage loan servicing rights | 141 | |
Derivative assets (included in other assets) | 1,030 | |
Equity securities (included in other assets) | 103 | 112 |
Financial liabilities: | ||
Deposits | 1,515,834 | 1,227,580 |
Federal Home Loan Bank borrowings | 307,303 | 250,000 |
Subordinated note | 50,217 | 19,865 |
Accrued interest payable | 1,302 | 258 |
Advance payments by borrowers for taxes and insurance | 1,207 | $ 2,076 |
Derivative liabilities (included in other liabilities) | $ 427 |
FAIR VALUE MEASUREMENTS (Additi
FAIR VALUE MEASUREMENTS (Additional information) (Detail) - USD ($) | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Impairment charges on nonresidential mortgage loan servicing rights | $ 0 | $ 0 | $ 0 | |
Unrealized gains recognized in earnings | $ 238,000 | |||
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Fees and Commissions, Mortgage Banking and Servicing | |||
Derivative assets and liabilities held at the balance sheet date | $ (238,000) | $ 1,567,000 | $ 14,937,000 | $ 3,269,000 |
Maximum | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 25% | 22.34% | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 29.26% | 24.51% | ||
Maximum | Collateral | Discount rate | ||||
Fair value inputs discount rate | 10% | 26% | ||
Maximum | Impaired Loans | Discount rate | ||||
Fair value inputs discount rate | 100% | 100% | ||
Maximum | SBA | Discount rate | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 25% | 22.34% | ||
Maximum | SBA | Prepayment rate | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 29.26% | 24.51% | ||
Minimum | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 6.90% | 4.57% | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 7.08% | 8.30% | ||
Minimum | Collateral | Discount rate | ||||
Fair value inputs discount rate | 0% | 0% | ||
Minimum | Impaired Loans | Discount rate | ||||
Fair value inputs discount rate | 0% | 0% | ||
Minimum | SBA | Discount rate | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 6.90% | 4.62% | ||
Minimum | SBA | Prepayment rate | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 7.08% | 8.30% | ||
Weighted Average | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 12.71% | 9.97% | ||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 15.27% | 15.98% | ||
Weighted Average | SBA | Discount rate | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 12.71% | 14.45% | ||
Weighted Average | SBA | Prepayment rate | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 15.27% | 15.98% |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Value And Estimated Fair Value Of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Financial assets: | ||
Cash and due from banks | $ 18,312 | $ 14,191 |
Interest-bearing deposits with banks | 23,353 | 19,237 |
Securities available for sale | 316,517 | 206,681 |
Securities held to maturity | 1,558 | 1,837 |
Loans, net | 1,436,555 | 1,075,936 |
Single tenant net lease loans held for sale | 23,020 | |
SBA loan servicing rights | 3,790 | 4,447 |
Derivative assets (included in other assets) | 1,030 | 3,632 |
Financial liabilities: | ||
Deposits | 1,515,834 | 1,227,580 |
Federal Home Loan Bank borrowings | 307,303 | 250,000 |
Accrued interest payable | 1,302 | 258 |
Advance payments by borrowers for taxes and insurance | 1,207 | 2,076 |
Derivative liabilities (included in other liabilities) | 427 | 635 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 18,312 | 14,191 |
Interest-bearing deposits with banks | 23,353 | 19,237 |
Interest-bearing time deposits | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
SBA loan servicing rights | 0 | 0 |
Derivative assets (included in other assets) | 0 | |
Derivative assets (included in other assets) | 0 | |
Equity securities (included in other assets) | 103 | 112 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Federal Home Loan Bank borrowings | 0 | 0 |
Subordinated note | 0 | 0 |
Accrued interest payable | 0 | 0 |
Advance payments by borrowers for taxes and insurance | 0 | 0 |
Derivative liabilities (included in other liabilities) | 0 | |
Derivative liabilities (included in other liabilities) | 0 | |
Level 2 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Interest-bearing time deposits | 1,613 | 2,222 |
Securities available for sale | 316,517 | 206,681 |
Securities held to maturity | 1,593 | 2,054 |
Loans, net | 0 | 0 |
Accrued interest receivable | 8,332 | 6,243 |
SBA loan servicing rights | 0 | 0 |
Derivative assets (included in other assets) | 1,465 | |
Derivative assets (included in other assets) | 872 | |
Equity securities (included in other assets) | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Federal Home Loan Bank borrowings | 302,090 | 251,877 |
Subordinated note | 48,685 | 21,083 |
Accrued interest payable | 1,302 | 258 |
Advance payments by borrowers for taxes and insurance | 1,207 | 2,076 |
Derivative liabilities (included in other liabilities) | 35 | |
Derivative liabilities (included in other liabilities) | 31 | |
Level 3 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Interest-bearing time deposits | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Loans, net | 1,366,096 | 1,124,226 |
Accrued interest receivable | 0 | 0 |
SBA loan servicing rights | 3,790 | 4,646 |
Derivative assets (included in other assets) | 2,167 | |
Derivative assets (included in other assets) | 158 | |
Equity securities (included in other assets) | 0 | 0 |
Financial liabilities: | ||
Deposits | 1,510,792 | 1,228,147 |
Federal Home Loan Bank borrowings | 0 | 0 |
Subordinated note | 0 | 0 |
Accrued interest payable | 0 | 0 |
Advance payments by borrowers for taxes and insurance | 0 | 0 |
Derivative liabilities (included in other liabilities) | 600 | |
Derivative liabilities (included in other liabilities) | 396 | |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Securities available for sale | 316,517 | 206,681 |
Derivative assets (included in other assets) | 1,030 | 3,632 |
Equity securities (included in other assets) | 103 | 112 |
Financial liabilities: | ||
Derivative liabilities (included in other liabilities) | 427 | 635 |
Fair Value, Measurements, Recurring | Level 1 | ||
Financial assets: | ||
Securities available for sale | 0 | 0 |
Derivative assets (included in other assets) | 0 | 0 |
Equity securities (included in other assets) | 103 | 112 |
Financial liabilities: | ||
Derivative liabilities (included in other liabilities) | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Financial assets: | ||
Securities available for sale | 316,517 | 206,681 |
Derivative assets (included in other assets) | 872 | 1,465 |
Equity securities (included in other assets) | 0 | 0 |
Financial liabilities: | ||
Derivative liabilities (included in other liabilities) | 31 | 35 |
Fair Value, Measurements, Recurring | Level 3 | ||
Financial assets: | ||
Securities available for sale | 0 | 0 |
Derivative assets (included in other assets) | 158 | 2,167 |
Equity securities (included in other assets) | 0 | 0 |
Financial liabilities: | ||
Derivative liabilities (included in other liabilities) | 396 | 600 |
Estimate of fair value measurement | ||
Financial assets: | ||
Cash and due from banks | 18,312 | 14,191 |
Interest-bearing deposits with banks | 23,353 | 19,237 |
Interest-bearing time deposits | 1,613 | 2,222 |
Securities available for sale | 316,517 | 206,681 |
Securities held to maturity | 1,558 | 1,837 |
Loans, net | 1,436,555 | 1,075,936 |
FRB and FHLB stock | 20,004 | 19,258 |
Accrued interest receivable | 8,332 | 6,243 |
SBA loan servicing rights | 3,790 | 4,447 |
Derivative assets (included in other assets) | 3,632 | |
Derivative assets (included in other assets) | 1,030 | |
Equity securities (included in other assets) | 103 | 112 |
Financial liabilities: | ||
Deposits | 1,515,834 | 1,227,580 |
Federal Home Loan Bank borrowings | 307,303 | 250,000 |
Subordinated note | 50,217 | 19,865 |
Accrued interest payable | 1,302 | 258 |
Advance payments by borrowers for taxes and insurance | 1,207 | 2,076 |
Derivative liabilities (included in other liabilities) | 635 | |
Derivative liabilities (included in other liabilities) | 427 | |
Estimate of fair value measurement | Small Business Administration Loans | ||
Financial assets: | ||
Loans, net | 21,883 | |
U.S. Treasury bills | ||
Financial assets: | ||
Securities available for sale | $ 27,295 | $ 250 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | $ 316,517,000 | $ 206,681,000 |
Total loans held for sale | 0 | |
SBA loan servicing rights | 3,790,000 | 4,447,000 |
Loans, net | 1,436,555,000 | 1,075,936,000 |
Derivative assets (included in other assets) | 1,030,000 | 3,632,000 |
Derivative liabilities (included in other liabilities) | 427,000 | 635,000 |
Residential real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total other real estate owned | 204,000 | 124,000 |
Agency Mortgage-Backed | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 27,500,000 | 8,384,000 |
Agency CMO. | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 14,821,000 | 13,530,000 |
Privately-issued CMO | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 470,000 | 803,000 |
Privately-issued ABS | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 569,000 | 772,000 |
SBA certificates | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 12,012,000 | 2,138,000 |
Municipal bonds | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 233,850,000 | 180,804,000 |
Fair Value, Measurements, Recurring | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 316,517,000 | 206,681,000 |
Derivative assets (included in other assets) | 1,030,000 | 3,632,000 |
Derivative liabilities (included in other liabilities) | 427,000 | 635,000 |
Fair Value, Measurements, Recurring | Residential mortgage loans held for sale - fair value option elected [Member] | ||
FAIR VALUE MEASUREMENTS | ||
Loans, net | 167,813,000 | |
Fair Value, Measurements, Recurring | Agency Mortgage-Backed | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 27,500,000 | 8,384,000 |
Fair Value, Measurements, Recurring | Agency CMO. | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 14,821,000 | 13,530,000 |
Fair Value, Measurements, Recurring | Privately-issued CMO | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 470,000 | 803,000 |
Fair Value, Measurements, Recurring | Privately-issued ABS | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 569,000 | 772,000 |
Fair Value, Measurements, Recurring | SBA certificates | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 12,012,000 | 2,138,000 |
Fair Value, Measurements, Recurring | Municipal bonds | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 233,850,000 | 180,804,000 |
Fair Value, Measurements, Nonrecurring | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 2,910,000 | 4,248,000 |
Fair Value, Measurements, Nonrecurring | Residential real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 71,000 |
Fair Value, Measurements, Nonrecurring | Commercial Real Estate [Member] | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Commercial Business | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 46,000 | 0 |
Fair Value, Measurements, Nonrecurring | Consumer | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 8,000 |
Fair Value, Measurements, Nonrecurring | Small Business Administration Loan [Member] | ||
FAIR VALUE MEASUREMENTS | ||
SBA loan servicing rights | 3,790,000 | 1,184,000 |
Level 1 | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
SBA loan servicing rights | 0 | 0 |
Loans, net | 0 | 0 |
Derivative assets (included in other assets) | 0 | |
Derivative liabilities (included in other liabilities) | 0 | |
Level 1 | Fair Value, Measurements, Recurring | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Derivative assets (included in other assets) | 0 | 0 |
Derivative liabilities (included in other liabilities) | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Residential mortgage loans held for sale - fair value option elected [Member] | ||
FAIR VALUE MEASUREMENTS | ||
Loans, net | 0 | |
Level 1 | Fair Value, Measurements, Recurring | Agency Mortgage-Backed | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Agency CMO. | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Privately-issued CMO | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Privately-issued ABS | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | SBA certificates | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | Municipal bonds | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | Residential real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | Commercial Real Estate [Member] | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | Commercial Business | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | Consumer | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | Small Business Administration Loan [Member] | ||
FAIR VALUE MEASUREMENTS | ||
SBA loan servicing rights | 0 | 0 |
Level 2 | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 316,517,000 | 206,681,000 |
SBA loan servicing rights | 0 | 0 |
Loans, net | 0 | 0 |
Derivative assets (included in other assets) | 1,465,000 | |
Derivative liabilities (included in other liabilities) | 35,000 | |
Level 2 | Fair Value, Measurements, Recurring | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 316,517,000 | 206,681,000 |
Derivative assets (included in other assets) | 872,000 | 1,465,000 |
Derivative liabilities (included in other liabilities) | 31,000 | 35,000 |
Level 2 | Fair Value, Measurements, Recurring | Residential mortgage loans held for sale - fair value option elected [Member] | ||
FAIR VALUE MEASUREMENTS | ||
Loans, net | 167,813,000 | |
Level 2 | Fair Value, Measurements, Recurring | Agency Mortgage-Backed | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 27,500,000 | 8,384,000 |
Level 2 | Fair Value, Measurements, Recurring | Agency CMO. | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 14,821,000 | 13,530,000 |
Level 2 | Fair Value, Measurements, Recurring | Privately-issued CMO | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 470,000 | 803,000 |
Level 2 | Fair Value, Measurements, Recurring | Privately-issued ABS | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 569,000 | 772,000 |
Level 2 | Fair Value, Measurements, Recurring | SBA certificates | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 12,012,000 | 2,138,000 |
Level 2 | Fair Value, Measurements, Recurring | Municipal bonds | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 233,850,000 | 180,804,000 |
Level 2 | Fair Value, Measurements, Nonrecurring | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | Residential real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | Commercial Real Estate [Member] | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | Commercial Business | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | Consumer | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | Small Business Administration Loan [Member] | ||
FAIR VALUE MEASUREMENTS | ||
SBA loan servicing rights | 0 | 0 |
Level 3 | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
SBA loan servicing rights | 3,790,000 | 4,646,000 |
Loans, net | 1,366,096,000 | 1,124,226,000 |
Derivative assets (included in other assets) | 2,167,000 | |
Derivative liabilities (included in other liabilities) | 600,000 | |
Level 3 | Fair Value, Measurements, Recurring | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Derivative assets (included in other assets) | 158,000 | 2,167,000 |
Derivative liabilities (included in other liabilities) | 396,000 | 600,000 |
Level 3 | Fair Value, Measurements, Recurring | Residential mortgage loans held for sale - fair value option elected [Member] | ||
FAIR VALUE MEASUREMENTS | ||
Loans, net | 0 | |
Level 3 | Fair Value, Measurements, Recurring | Agency Mortgage-Backed | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Agency CMO. | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Privately-issued CMO | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Privately-issued ABS | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | SBA certificates | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Municipal bonds | ||
FAIR VALUE MEASUREMENTS | ||
Total securities available for sale | 0 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 2,910,000 | 4,248,000 |
Level 3 | Fair Value, Measurements, Nonrecurring | Residential real estate | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 71,000 |
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial Real Estate [Member] | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial Business | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 46,000 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | Consumer | ||
FAIR VALUE MEASUREMENTS | ||
Total impaired loans | 0 | 8,000 |
Level 3 | Fair Value, Measurements, Nonrecurring | Small Business Administration Loan [Member] | ||
FAIR VALUE MEASUREMENTS | ||
SBA loan servicing rights | $ 3,790,000 | $ 1,184,000 |
CAPITAL REQUIREMENTS AND REST_3
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS (Bank's Actual Capital Amounts And Ratios) (Detail) $ in Thousands | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) |
Consolidated | ||
Total capital (to risk-weighted assets) Actual Amount | $ 226,283 | $ 193,476 |
Tier I capital (to risk-weighted assets) Actual Amount | 160,706 | 159,310 |
Common equity tier I capital (to risk-weighted assets) Actual Amount | 160,706 | 159,310 |
Tier I capital (to average adjusted total assets) Actual Amount | $ 160,706 | $ 159,310 |
Total capital (to risk weighted assets) Actual Ratio | 0.1265 | 0.1428 |
Tier I capital (to risk-weighted assets) Actual Ratio | 0.0899 | 0.1176 |
Common equity tier I capital (to risk-weighted assets) Actual Ratio | 8.99% | 11.76% |
Tier I capital (to average adjusted total assets) Actual Ratio | 0.0803 | 0.0973 |
Total capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Amount | $ 143,088 | $ 108,401 |
Tier I capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Amount | 107,316 | 81,301 |
Common equity tier I capital (to risk-weighted assets) Minimum for Capital Adequacy Purposes Amount | 80,487 | 60,976 |
Tier I capital (to average adjusted total assets) Minimum for Capital Adequacy Purposes Amount | $ 80,043 | $ 65,480 |
Total capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Ratio | 0.0800 | 0.0800 |
Tier I capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Ratio | 0.0600 | 0.0600 |
Common equity tier I capital (to risk-weighted assets) Minimum for Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Tier I capital (to average adjusted total assets) Minimum for Capital Adequacy Purposes Ratio | 0.0400 | 0.0400 |
Total capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ||
Tier I capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ||
Common equity tier I capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ||
Tier I capital (to average adjusted total assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | ||
Total capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ||
Tier I capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ||
Common equity tier I capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ||
Tier I capital (to average adjusted total assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | ||
Bank | ||
Total capital (to risk-weighted assets) Actual Amount | $ 209,602 | $ 183,885 |
Tier I capital (to risk-weighted assets) Actual Amount | 194,242 | 169,584 |
Common equity tier I capital (to risk-weighted assets) Actual Amount | 194,242 | 169,584 |
Tier I capital (to average adjusted total assets) Actual Amount | $ 194,242 | $ 169,584 |
Total capital (to risk weighted assets) Actual Ratio | 0.1174 | 0.1360 |
Tier I capital (to risk-weighted assets) Actual Ratio | 0.1088 | 0.1254 |
Common equity tier I capital (to risk-weighted assets) Actual Ratio | 10.88% | 12.54% |
Tier I capital (to average adjusted total assets) Actual Ratio | 0.0964 | 0.1007 |
Total capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Amount | $ 142,828 | $ 108,156 |
Tier I capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Amount | 107,121 | 81,117 |
Common equity tier I capital (to risk-weighted assets) Minimum for Capital Adequacy Purposes Amount | 80,341 | 60,838 |
Tier I capital (to average adjusted total assets) Minimum for Capital Adequacy Purposes Amount | $ 80,565 | $ 67,333 |
Total capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Ratio | 0.0800 | 0.0800 |
Tier I capital (to risk weighted assets) Minimum for Capital Adequacy Purposes Ratio | 0.0600 | 0.0600 |
Common equity tier I capital (to risk-weighted assets) Minimum for Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Tier I capital (to average adjusted total assets) Minimum for Capital Adequacy Purposes Ratio | 0.0400 | 0.0400 |
Total capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 178,535 | $ 135,195 |
Tier I capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 142,828 | 108,156 |
Common equity tier I capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 116,048 | 87,877 |
Tier I capital (to average adjusted total assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 100,706 | $ 84,166 |
Total capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.1000 | 0.1000 |
Tier I capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.0800 | 0.0800 |
Common equity tier I capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Tier I capital (to average adjusted total assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.0500 | 0.0500 |
CAPITAL REQUIREMENTS AND REST_4
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS - Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||||||
Sep. 15, 2021 item | Aug. 16, 2021 item $ / shares shares | Sep. 30, 2022 USD ($) $ / shares | Sep. 30, 2021 $ / shares | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2015 | Mar. 31, 2008 USD ($) | |
CAPITAL REQUIREMENTS AND RESTRICTION ON DIVIDENDS | ||||||||
Percentage of capital conservation buffer | 2.50% | 2.50% | 2.50% | 2.50% | 0% | |||
Liquidation account | $ 29.3 | |||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Dividend split ratio | item | 0.33 | 0.33 | ||||||
Number of shares issued as dividend for every share held under stock split | shares | 2 | |||||||
Maximum amount to attain consolidated capital requirements | $ 3,000 |
SUPPLEMENTAL DISCLOSURE FOR E_3
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE - Net income per share information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Basic: | |||||||||||||||
Net income attributable to First Savings Financial Group, Inc. available to common shareholders | $ 4,849 | $ 4,308 | $ 10,487 | $ 9,923 | $ 15,137 | $ 15,405 | $ (627) | $ 3,439 | $ 16,444 | $ 29,567 | $ 33,354 | ||||
Shares: | |||||||||||||||
Weighted average common shares outstanding, basic | 7,058,550 | 7,107,786 | 7,070,040 | ||||||||||||
Net income (loss) per common share, basic | $ 0.35 | $ 0.37 | $ 0.99 | $ 0.60 | $ 0.68 | $ 0.61 | $ 1.48 | $ 1.40 | $ 2.13 | $ 2.17 | $ (0.09) | $ 0.49 | $ 2.33 | $ 4.16 | $ 4.72 |
Diluted: | |||||||||||||||
Net income attributable to First Savings Financial Group, Inc. available to common shareholders | $ 16,444 | $ 29,567 | $ 33,354 | ||||||||||||
Shares: | |||||||||||||||
Weighted average common shares outstanding, basic | 7,058,550 | 7,107,786 | 7,070,040 | ||||||||||||
Add: Dilutive effect of outstanding options | 71,240 | 56,176 | 48,540 | ||||||||||||
Add: Dilutive effect of restricted stock | 12,056 | 9,771 | 9,282 | ||||||||||||
Weighted average common shares outstanding, as adjusted | 7,141,846 | 7,173,733 | 7,127,862 | ||||||||||||
Net income (loss) per common share, diluted | $ 0.35 | $ 0.37 | $ 0.98 | $ 0.60 | $ 0.67 | $ 0.60 | $ 1.46 | $ 1.39 | $ 2.12 | $ 2.17 | $ (0.09) | $ 0.48 | $ 2.30 | $ 4.12 | $ 4.68 |
SUPPLEMENTAL DISCLOSURE FOR E_4
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE - Additional Information (Detail) - shares | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE | |||
Antidilutive restricted stock awards | 137,250 | 49,974 | 66,474 |
PARENT COMPANY CONDENSED FINA_3
PARENT COMPANY CONDENSED FINANCIAL INFORMATION - (Balance Sheets) (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Assets: | |||
Cash and due from banks | $ 18,312 | $ 14,191 | |
Other assets | 20,691 | 22,438 | |
Total Assets | 2,057,662 | 1,721,394 | $ 1,764,625 |
Liabilities and Equity: | |||
Stockholders' equity | 152,623 | 180,377 | |
Total Liabilities and Stockholders' Equity | 2,057,662 | 1,721,394 | |
Reportable Legal Entities | Parent Company | |||
Assets: | |||
Cash and due from banks | 16,940 | 6,870 | |
Other assets | 1,164 | 755 | |
Investment in subsidiaries | 185,374 | 193,926 | |
Total Assets | 203,478 | 201,551 | |
Liabilities and Equity: | |||
Subordinated note | 50,217 | 19,865 | |
Accrued expenses | 638 | 1,309 | |
Stockholders' equity | 152,623 | 180,377 | |
Total Liabilities and Stockholders' Equity | $ 203,478 | $ 201,551 |
PARENT COMPANY CONDENSED FINA_4
PARENT COMPANY CONDENSED FINANCIAL INFORMATION - (Statements of Income) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Dividend income from subsidiaries | $ 729 | $ 582 | $ 617 | ||||||||||||
Interest expense | 989 | 1,256 | 1,531 | ||||||||||||
Income (loss) before income taxes and equity in undistributed net income of subsidiaries | $ 2,475 | $ 2,577 | $ 8,654 | $ 5,116 | $ 5,807 | $ 5,125 | $ 14,182 | $ 14,852 | $ 23,228 | $ 21,149 | $ (1,876) | $ 4,241 | 18,822 | 39,966 | 46,742 |
Income tax benefit | 9 | (61) | 1,619 | 811 | 958 | 817 | 3,695 | 4,527 | 7,257 | 5,540 | (774) | 638 | 2,378 | 9,997 | 12,661 |
Income (loss) before equity in undistributed net income of subsidiaries | $ 2,466 | $ 2,638 | $ 7,035 | $ 4,305 | $ 4,849 | $ 4,308 | $ 10,487 | $ 10,325 | $ 15,971 | $ 15,609 | $ (1,102) | $ 3,603 | 16,444 | 29,969 | 34,081 |
Equity in undistributed net income of subsidiaries | 0 | (402) | (727) | ||||||||||||
Net income | 16,444 | 29,567 | 33,354 | ||||||||||||
Reportable Legal Entities | Parent Company | |||||||||||||||
Dividend income from subsidiaries | 1,300 | 5,175 | 1,000 | ||||||||||||
Interest expense | (2,111) | (1,274) | (1,274) | ||||||||||||
Other operating expenses | (1,475) | (1,076) | (1,002) | ||||||||||||
Income (loss) before income taxes and equity in undistributed net income of subsidiaries | (2,286) | 2,825 | (1,276) | ||||||||||||
Income tax benefit | 795 | 504 | 598 | ||||||||||||
Income (loss) before equity in undistributed net income of subsidiaries | (1,491) | 3,329 | (678) | ||||||||||||
Equity in undistributed net income of subsidiaries | 17,935 | 26,238 | 34,032 | ||||||||||||
Net income | $ 16,444 | $ 29,567 | $ 33,354 |
PARENT COMPANY CONDENSED FINA_5
PARENT COMPANY CONDENSED FINANCIAL INFORMATION - (Statements of Cash Flows) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities: | |||
Net income | $ 16,444 | $ 29,567 | $ 33,354 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in undistributed net income of subsidiaries | 0 | 402 | 727 |
Stock compensation expense | 688 | 277 | 279 |
Net change in other assets and liabilities | 602 | 7,077 | (7,314) |
Net cash provided by (used in) operating activities | 148,812 | 114,893 | (139,689) |
Investing Activities: | |||
Net cash used in investing activities | (506,229) | (55,877) | (339,433) |
Financing Activities: | |||
Net proceeds from subordinated debt | 30,258 | ||
Exercise of stock options | 27 | 148 | |
Tax paid on stock award shares for employees | 48 | 41 | 53 |
Purchase of treasury stock | (4,745) | ||
Net cash provided by (used in) financing activities | 365,654 | (59,314) | 471,416 |
Net increase (decrease) in cash and due from banks | 8,237 | (298) | (7,706) |
Cash and due from banks at beginning of year | 33,428 | ||
Cash and due from banks at end of year | 41,665 | 33,428 | |
Reportable Legal Entities | Parent Company | |||
Operating Activities: | |||
Net income | 16,444 | 29,567 | 33,354 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in undistributed net income of subsidiaries | (17,935) | (26,238) | (34,032) |
Stock compensation expense | 688 | 277 | 279 |
Net change in other assets and liabilities | (93) | 201 | 182 |
Net cash provided by (used in) operating activities | (896) | 3,807 | (217) |
Investing Activities: | |||
Investment in bank subsidiary | (10,000) | 0 | 0 |
Net cash used in investing activities | (10,000) | 0 | 0 |
Financing Activities: | |||
Net proceeds from subordinated debt | 30,258 | 0 | 0 |
Exercise of stock options | 0 | 27 | 148 |
Tax paid on stock award shares for employees | (48) | (41) | (53) |
Purchase of treasury stock | (4,745) | 0 | 0 |
Dividends paid | (4,499) | (1,685) | (1,590) |
Net cash provided by (used in) financing activities | 20,966 | (1,699) | (1,495) |
Net increase (decrease) in cash and due from banks | 10,070 | 2,108 | (1,712) |
Cash and due from banks at beginning of year | 6,870 | 4,762 | 6,474 |
Cash and due from banks at end of year | $ 16,940 | $ 6,870 | $ 4,762 |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CONCENTRATION OF CREDIT RISK | ||
Concentration of credit risk with correspondent banks in excess of the federal deposit insurance limit | $ 13.4 | $ 9.5 |
SUPPLEMENTAL DISCLOSURE OF CA_3
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash payments for: | |||
Interest | $ 9,301 | $ 8,517 | $ 10,817 |
Income taxes (net of refunds received) | (3,226) | 9,051 | 3,971 |
Non-cash activities: | |||
Net transfers from loans to loans held for sale | 41,703 | 15,916 | |
Net transfers from loans held for sale to loans | 13,139 | ||
Transfers from loans to OREO | 426 | 426 | |
Cashless exercise of stock options | 39 | $ 77 | $ 249 |
Transfers from OREO to premises and equipment | $ 721 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||
Interest income | $ 20,956 | $ 18,479 | $ 15,801 | $ 15,762 | $ 16,243 | $ 16,150 | $ 16,840 | $ 16,026 | $ 15,765 | $ 14,719 | $ 13,554 | $ 13,661 | $ 70,998 | $ 65,259 | $ 57,699 |
Interest expense | 4,131 | 2,568 | 1,788 | 1,859 | 1,819 | 1,921 | 2,060 | 2,287 | 2,337 | 2,543 | 2,783 | 2,875 | 10,346 | 8,087 | 10,538 |
Net interest income | 16,825 | 15,911 | 14,013 | 13,903 | 14,424 | 14,229 | 14,780 | 13,739 | 13,428 | 12,176 | 10,771 | 10,786 | 60,652 | 57,172 | 47,161 |
Provision (credit) for loan losses | 880 | 532 | (30) | 526 | 8 | (2,730) | 287 | 668 | 2,772 | 2,980 | 1,705 | 505 | 1,908 | (1,767) | 7,962 |
Net interest income after provision (credit) for loan losses | 15,945 | 15,379 | 14,043 | 13,377 | 14,416 | 16,959 | 14,493 | 13,071 | 10,656 | 9,196 | 9,066 | 10,281 | 58,744 | 58,939 | 39,199 |
Noninterest income | 4,531 | 10,033 | 20,072 | 16,591 | 16,495 | 18,785 | 38,973 | 46,183 | 57,024 | 46,962 | 11,133 | 18,232 | 51,227 | 120,436 | 133,351 |
Noninterest expenses | 18,001 | 22,835 | 25,461 | 24,852 | 25,104 | 30,619 | 39,284 | 44,402 | 44,452 | 35,009 | 22,075 | 24,272 | 91,149 | 139,409 | 125,808 |
Income before income taxes | 2,475 | 2,577 | 8,654 | 5,116 | 5,807 | 5,125 | 14,182 | 14,852 | 23,228 | 21,149 | (1,876) | 4,241 | 18,822 | 39,966 | 46,742 |
Income tax benefit | 9 | (61) | 1,619 | 811 | 958 | 817 | 3,695 | 4,527 | 7,257 | 5,540 | (774) | 638 | 2,378 | 9,997 | 12,661 |
Net Income | $ 2,466 | $ 2,638 | $ 7,035 | $ 4,305 | 4,849 | 4,308 | 10,487 | 10,325 | 15,971 | 15,609 | (1,102) | 3,603 | 16,444 | 29,969 | 34,081 |
Net income (loss) attributable to noncontrolling interest in subsidiary | 402 | 834 | 204 | 475 | 164 | ||||||||||
Net income (loss) attributable to First Savings Financial Group, Inc. | $ 4,849 | $ 4,308 | $ 10,487 | $ 9,923 | $ 15,137 | $ 15,405 | $ (627) | $ 3,439 | $ 16,444 | $ 29,567 | $ 33,354 | ||||
Net income (loss) per common share, basic | $ 0.35 | $ 0.37 | $ 0.99 | $ 0.60 | $ 0.68 | $ 0.61 | $ 1.48 | $ 1.40 | $ 2.13 | $ 2.17 | $ (0.09) | $ 0.49 | $ 2.33 | $ 4.16 | $ 4.72 |
Net income (loss) per common share, diluted | $ 0.35 | $ 0.37 | $ 0.98 | $ 0.60 | $ 0.67 | $ 0.60 | $ 1.46 | $ 1.39 | $ 2.12 | $ 2.17 | $ (0.09) | $ 0.48 | $ 2.30 | $ 4.12 | $ 4.68 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2020 USD ($) | Jun. 30, 2020 USD ($) | Mar. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
SEGMENT REPORTING | |||||||||||||||
Number of operating segments | segment | 3 | ||||||||||||||
Net interest income (loss) | $ 16,825 | $ 15,911 | $ 14,013 | $ 13,903 | $ 14,424 | $ 14,229 | $ 14,780 | $ 13,739 | $ 13,428 | $ 12,176 | $ 10,771 | $ 10,786 | $ 60,652 | $ 57,172 | $ 47,161 |
Provision for loan losses | 1,908 | (1,767) | 7,962 | ||||||||||||
Net interest income (loss) after provision | 15,945 | 15,379 | 14,043 | 13,377 | 14,416 | 16,959 | 14,493 | 13,071 | 10,656 | 9,196 | 9,066 | 10,281 | 58,744 | 58,939 | 39,199 |
Net gains on sales of loans, SBA | 3,698 | 8,740 | 5,673 | ||||||||||||
Mortgage banking income (loss) | 38,337 | 104,504 | 120,733 | ||||||||||||
Noninterest income | 4,531 | 10,033 | 20,072 | 16,591 | 16,495 | 18,785 | 38,973 | 46,183 | 57,024 | 46,962 | 11,133 | 18,232 | 51,227 | 120,436 | 133,351 |
Noninterest expense (income) | 18,001 | 22,835 | 25,461 | 24,852 | 25,104 | 30,619 | 39,284 | 44,402 | 44,452 | 35,009 | 22,075 | 24,272 | 91,149 | 139,409 | 125,808 |
Income (loss) before taxes | 2,475 | 2,577 | 8,654 | 5,116 | 5,807 | 5,125 | 14,182 | 14,852 | 23,228 | 21,149 | (1,876) | 4,241 | 18,822 | 39,966 | 46,742 |
Income tax benefit | 9 | (61) | 1,619 | 811 | 958 | 817 | 3,695 | 4,527 | 7,257 | 5,540 | (774) | 638 | 2,378 | 9,997 | 12,661 |
Income (loss) before equity in undistributed net income of subsidiaries | 2,466 | $ 2,638 | $ 7,035 | $ 4,305 | 4,849 | $ 4,308 | $ 10,487 | $ 10,325 | 15,971 | $ 15,609 | $ (1,102) | $ 3,603 | 16,444 | 29,969 | 34,081 |
Non-cash items: | |||||||||||||||
Depreciation and amortization | 2,448 | 2,300 | 1,858 | ||||||||||||
Segment assets | 2,057,662 | 1,721,394 | 1,764,625 | 2,057,662 | 1,721,394 | 1,764,625 | |||||||||
Core Banking | |||||||||||||||
SEGMENT REPORTING | |||||||||||||||
Net interest income (loss) | 54,252 | 46,122 | 39,408 | ||||||||||||
Provision for loan losses | 1,295 | (1,782) | 4,636 | ||||||||||||
Net interest income (loss) after provision | 52,957 | 47,904 | 34,772 | ||||||||||||
Mortgage banking income (loss) | (2) | 4 | 8 | ||||||||||||
Noninterest income | 8,292 | 6,331 | 5,905 | ||||||||||||
Noninterest expense (income) | 38,821 | 35,636 | 29,772 | ||||||||||||
Income (loss) before taxes | 22,428 | 18,599 | 10,905 | ||||||||||||
Income tax benefit | 3,377 | 2,935 | 2,265 | ||||||||||||
Income (loss) before equity in undistributed net income of subsidiaries | 19,051 | 15,664 | 8,640 | ||||||||||||
Non-cash items: | |||||||||||||||
Depreciation and amortization | 2,109 | 1,953 | 1,558 | ||||||||||||
Segment assets | 1,935,896 | 1,469,371 | 1,459,467 | 1,935,896 | 1,469,371 | 1,459,467 | |||||||||
SBA Lending | |||||||||||||||
SEGMENT REPORTING | |||||||||||||||
Net interest income (loss) | 6,108 | 10,339 | 5,911 | ||||||||||||
Provision for loan losses | 613 | 15 | 3,326 | ||||||||||||
Net interest income (loss) after provision | 5,495 | 10,324 | 2,585 | ||||||||||||
Net gains on sales of loans, SBA | 3,698 | 8,740 | 5,673 | ||||||||||||
Noninterest income | 4,623 | 9,661 | 6,751 | ||||||||||||
Noninterest expense (income) | 8,721 | 9,374 | 7,853 | ||||||||||||
Income (loss) before taxes | 1,397 | 10,611 | 1,483 | ||||||||||||
Income tax benefit | 408 | 2,512 | 189 | ||||||||||||
Income (loss) before equity in undistributed net income of subsidiaries | 989 | 8,099 | 1,294 | ||||||||||||
Non-cash items: | |||||||||||||||
Depreciation and amortization | 30 | 42 | 51 | ||||||||||||
Segment assets | 105,342 | 168,342 | 283,994 | 105,342 | 168,342 | 283,994 | |||||||||
Mortgage Banking | |||||||||||||||
SEGMENT REPORTING | |||||||||||||||
Net interest income (loss) | 2,360 | 1,940 | 3,046 | ||||||||||||
Net interest income (loss) after provision | 2,360 | 1,940 | 3,046 | ||||||||||||
Mortgage banking income (loss) | 38,339 | 104,500 | 120,725 | ||||||||||||
Noninterest income | 38,312 | 104,444 | 120,695 | ||||||||||||
Noninterest expense (income) | 43,962 | 94,768 | 88,573 | ||||||||||||
Income (loss) before taxes | (3,290) | 11,616 | 35,168 | ||||||||||||
Income tax benefit | (618) | 5,047 | 10,793 | ||||||||||||
Income (loss) before equity in undistributed net income of subsidiaries | (2,672) | 6,569 | 24,375 | ||||||||||||
Non-cash items: | |||||||||||||||
Depreciation and amortization | 162 | 237 | 181 | ||||||||||||
Segment assets | 107,570 | 232,279 | 293,973 | 107,570 | 232,279 | 293,973 | |||||||||
Other | |||||||||||||||
SEGMENT REPORTING | |||||||||||||||
Net interest income (loss) | (2,068) | (1,229) | (1,204) | ||||||||||||
Net interest income (loss) after provision | (2,068) | (1,229) | (1,204) | ||||||||||||
Noninterest expense (income) | (355) | (369) | (390) | ||||||||||||
Income (loss) before taxes | (1,713) | (860) | (814) | ||||||||||||
Income tax benefit | (789) | (497) | (586) | ||||||||||||
Income (loss) before equity in undistributed net income of subsidiaries | (924) | (363) | (228) | ||||||||||||
Non-cash items: | |||||||||||||||
Depreciation and amortization | 147 | 68 | 68 | ||||||||||||
Segment assets | $ (91,146) | $ (148,598) | $ (272,809) | $ (91,146) | $ (148,598) | $ (272,809) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Sources of Noninterest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||||||||||||||
Revenue from contracts with customers | $ 5,444 | $ 4,559 | $ 4,086 | ||||||||||||
Gain on sale of securities | 476 | 7 | |||||||||||||
Gain on sale of SBA loans | 3,698 | 8,740 | 5,673 | ||||||||||||
Gain on sale of single tenant net lease loans | 719 | ||||||||||||||
Mortgage banking income | 38,337 | 104,504 | 120,733 | ||||||||||||
Increase in cash value of life insurance | 993 | 785 | 732 | ||||||||||||
Real estate lease income | 571 | 592 | 589 | ||||||||||||
Other | 989 | 1,256 | 1,531 | ||||||||||||
Other noninterest income | 45,783 | 115,877 | 129,265 | ||||||||||||
Total noninterest income | $ 4,531 | $ 10,033 | $ 20,072 | $ 16,591 | $ 16,495 | $ 18,785 | $ 38,973 | $ 46,183 | $ 57,024 | $ 46,962 | $ 11,133 | $ 18,232 | 51,227 | 120,436 | 133,351 |
Service charges on deposit accounts | |||||||||||||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||||||||||||||
Revenue from contracts with customers | 1,864 | 1,468 | 1,581 | ||||||||||||
ATM and interchange fees | |||||||||||||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||||||||||||||
Revenue from contracts with customers | 2,753 | 2,399 | 2,116 | ||||||||||||
Investment Advisory Income | |||||||||||||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||||||||||||||
Revenue from contracts with customers | 717 | 589 | 288 | ||||||||||||
Other | |||||||||||||||
REVENUE FROM CONTRACTS WITH CUSTOMERS | |||||||||||||||
Revenue from contracts with customers | $ 110 | $ 103 | $ 101 |
MORTGAGE BANKING INCOME (Detail
MORTGAGE BANKING INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
MORTGAGE BANKING INCOME | |||
Origination and sale of mortgage loans | $ (674) | $ 83,874 | $ 105,659 |
Mortgage brokerage income | 762 | 1,500 | |
Net change in fair value of loans held for sale and interest rate lock commitments | (4,206) | (18,856) | 16,680 |
Realized and unrealized hedging gains (losses) | 20,398 | 4,140 | (22,412) |
Capitalized residential mortgage loan servicing rights | 11,161 | 36,679 | 24,058 |
Net change in fair value of residential mortgage loan servicing rights | 2,523 | (8,803) | (3,289) |
Net loan servicing income | 9,045 | 6,565 | 651 |
Provisions for loan repurchases and indemnifications | (672) | (595) | (614) |
Total mortgage banking income | $ 38,337 | $ 104,504 | $ 120,733 |