Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2022 | Feb. 02, 2023 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 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 | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Jeffersonville | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47130 | |
City Area Code | 812 | |
Local Phone Number | 283-0724 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | FSFG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,917,921 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001435508 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
ASSETS | ||
Cash and due from banks | $ 25,226 | $ 18,312 |
Interest-bearing deposits with banks | 13,052 | 23,353 |
Total cash and cash equivalents | 38,278 | 41,665 |
Interest-bearing time deposits | 1,854 | 1,613 |
Total securities available for sale | 329,163 | 316,517 |
Securities held to maturity | 1,520 | 1,558 |
Loans held for sale, residential mortgage, at fair value | 20,675 | 38,579 |
Loans held for sale, Small Business Administration | 23,606 | 21,883 |
Loans, net of allowance for loan losses of $16,080 at December 31, 2022 and $15,360 at September 30, 2022 | 1,582,940 | 1,474,544 |
Federal Reserve Bank and Federal Home Loan Bank stock, at cost | 21,564 | 20,004 |
Premises and equipment, net | 27,297 | 27,100 |
Other real estate owned, held for sale | 203 | 203 |
Accrued interest receivable: | ||
Loans | 6,346 | 5,379 |
Securities | 4,090 | 2,953 |
Cash surrender value of life insurance | 45,370 | 45,145 |
Goodwill | 9,848 | 9,848 |
Core deposit intangibles | 721 | 775 |
Residential mortgage loan servicing rights, at fair value | 62,165 | 63,263 |
Nonresidential mortgage loan servicing rights | 132 | 141 |
SBA loan servicing rights | 3,301 | 3,790 |
Other assets | 17,846 | 18,765 |
Total Assets | 2,196,919 | 2,093,725 |
Deposits: | ||
Noninterest-bearing | 315,390 | 340,172 |
Interest-bearing | 1,222,451 | 1,175,662 |
Total deposits | 1,537,841 | 1,515,834 |
Federal Home Loan Bank borrowings | 377,643 | 307,303 |
Other borrowings | 95,458 | 88,206 |
Accrued interest payable | 1,984 | 1,302 |
Advance payments by borrowers for taxes and insurance | 695 | 1,207 |
Accrued expenses and other liabilities | 23,154 | 28,308 |
Total Liabilities | 2,036,775 | 1,942,160 |
STOCKHOLDERS' EQUITY | ||
Preferred stock of $.01 par value per share; authorized 1,000,000 shares; none issued | ||
Common stock of $.01 par value per share; authorized 20,000,000 shares; issued 7,779,271 shares (7,757,271 at September 30, 2022); outstanding 6,917,921 shares (6,970,631 shares at September 30, 2022) | 78 | 78 |
Additional paid-in capital | 27,347 | 26,770 |
Retained earnings - substantially restricted | 163,890 | 161,927 |
Accumulated other comprehensive loss | (19,000) | (27,079) |
Unearned stock compensation | (1,361) | (969) |
Less treasury stock, at cost - 861,350 shares (786,640 shares at September 30, 2022) | (10,810) | (9,162) |
Total Stockholders' Equity | 160,144 | 151,565 |
Total Liabilities and Stockholders' Equity | $ 2,196,919 | $ 2,093,725 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2022 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Loans, net of allowance for loan losses | $ | $ 16,080 | $ 15,360 |
Preferred stock, par value | $ / shares | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,779,271 | 7,757,271 |
Common stock, shares outstanding | 6,917,921 | 6,970,631 |
Treasury stock, shares | 861,350 | 786,640 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST INCOME | ||
Loans, including fees | $ 20,185 | $ 14,002 |
Securities: | ||
Taxable | 955 | 405 |
Tax-exempt | 1,979 | 1,192 |
Dividend income | 220 | 149 |
Interest-bearing deposits with banks | 144 | 14 |
Total interest income | 23,483 | 15,762 |
INTEREST EXPENSE | ||
Deposits | 4,158 | 811 |
Federal Home Loan Bank borrowings | 1,919 | 730 |
Other borrowings | 1,145 | 318 |
Total interest expense | 7,222 | 1,859 |
Net interest income | 16,261 | 13,903 |
Provision for loan losses | 984 | 526 |
Net interest income after provision for loan losses | 15,277 | 13,377 |
NONINTEREST INCOME | ||
Service charges on deposit accounts | 558 | 434 |
ATM and interchange fees | 739 | 679 |
Net unrealized gain on equity securities | 14 | 16 |
Other than temporary impairment loss on securities | (28) | |
Net gain on sales of loans, Small Business Administration | 775 | 1,636 |
Net gain on sales of loans, single tenant net lease | 162 | |
Mortgage banking income | 2,496 | 12,744 |
Increase in cash surrender value of life insurance | 225 | 254 |
Commission income | 128 | 188 |
Real estate lease income | 117 | 148 |
Income from tax credit investment | 10 | |
Other income | 164 | 320 |
Total noninterest income | 5,188 | 16,591 |
NONINTEREST EXPENSE | ||
Compensation and benefits | 10,685 | 17,291 |
Occupancy and equipment | 1,860 | 2,113 |
Data processing | 777 | 633 |
Advertising | 418 | 792 |
Professional fees | 793 | 1,189 |
FDIC insurance premiums | 308 | 115 |
Other operating expenses | 2,670 | 2,719 |
Total noninterest expense | 17,511 | 24,852 |
Income before income taxes | 2,954 | 5,116 |
Income tax expense | 83 | 811 |
Net Income | $ 2,871 | $ 4,305 |
Net income per share: | ||
Basic | $ 0.42 | $ 0.60 |
Diluted | $ 0.41 | $ 0.60 |
Weighted average shares outstanding: | ||
Basic | 6,915,909 | 7,116,790 |
Diluted | 6,972,055 | 7,207,210 |
Dividends per share | $ 0.13 | $ 0.12 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) | Sep. 15, 2021 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |
Stock split ratio | 0.33 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net Income | $ 2,871 | $ 4,305 |
Unrealized gains on securities available for sale: | ||
Unrealized holding gains arising during the period | 10,199 | 404 |
Income tax expense | (2,142) | (85) |
Net of tax amount | 8,057 | 319 |
Less: reclassification adjustment for other-than-temporary impairment loss on securities included in net income | 28 | |
Income tax benefit | (6) | |
Net of tax amount | 22 | |
Other Comprehensive Income | 8,079 | 319 |
Comprehensive Income | $ 10,950 | $ 4,624 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Unearned Stock Compensation | Treasury Stock | Total |
Balances at Sep. 30, 2021 | $ 78 | $ 25,721 | $ 150,185 | $ 8,900 | $ (138) | $ (4,369) | $ 180,377 |
Net income | 4,305 | 4,305 | |||||
Other comprehensive income | 319 | 319 | |||||
Common stock dividends | (860) | (860) | |||||
Restricted stock grants | 1,222 | (1,222) | |||||
Stock compensation expense | 0 | 52 | 75 | 127 | |||
Purchase of treasury shares | (48) | (48) | |||||
Balances at Dec. 31, 2021 | 78 | 26,995 | 153,630 | 9,219 | (1,285) | (4,417) | 184,220 |
Balances at Sep. 30, 2022 | 78 | 26,770 | 161,927 | (27,079) | (969) | (9,162) | 151,565 |
Net income | 2,871 | 2,871 | |||||
Other comprehensive income | 8,079 | 8,079 | |||||
Common stock dividends | (908) | (908) | |||||
Restricted stock grants | 495 | (495) | |||||
Stock compensation expense | 0 | 82 | 103 | 185 | |||
Purchase of treasury shares | (1,648) | (1,648) | |||||
Balances at Dec. 31, 2022 | $ 78 | $ 27,347 | $ 163,890 | $ (19,000) | $ (1,361) | $ (10,810) | $ 160,144 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 3 Months Ended | |
Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Common stock dividends - per share | $ / shares | $ 0.13 | $ 0.12 |
Restricted stock grants - shares | 22,000 | 45,750 |
Purchase of treasury shares | 74,710 | 1,812 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 2,871 | $ 4,305 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 984 | 526 |
Depreciation and amortization | 633 | 606 |
Amortization of premiums and accretion of discounts on securities, net | 184 | 233 |
Amortization and accretion of fair value adjustments on loans, net | (374) | (408) |
Loans originated for sale | (90,390) | (561,427) |
Proceeds on sales of loans | 107,337 | 610,090 |
Net realized and unrealized gain on loans held for sale | (419) | (2,224) |
Capitalization of loan servicing rights | (340) | (4,850) |
Net change in value of loan servicing rights | 1,936 | (311) |
Other than temporary impairment loss on securities | 28 | |
Increase in cash surrender value of life insurance | (225) | (254) |
Net gain on equity securities | (14) | (16) |
Income from tax credit investment | (10) | |
Deferred income taxes | (1,532) | 1,261 |
Stock compensation expense | 185 | 127 |
Increase in accrued interest receivable | (2,104) | (594) |
Increase (decrease) in accrued interest payable | 682 | (7) |
Change in other assets and liabilities, net | (2,683) | (6,282) |
Net Cash Provided by Operating Activities | 16,759 | 40,765 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investment in interest-bearing time deposits | (490) | |
Proceeds from maturities of interest-bearing time deposits | 245 | 245 |
Purchase of securities available for sale | (6,073) | (15,720) |
Proceeds from maturities of securities available for sale | 1,923 | 2,022 |
Proceeds from maturities of securities held to maturity | 35 | 30 |
Principal collected on securities available for sale | 1,525 | 1,435 |
Net increase in loans | (109,441) | (67,075) |
Proceeds from redemption of Federal Reserve Bank and Federal Home Loan Bank stock | 15 | |
Purchase of Federal Reserve Bank and Federal Home Loan Bank stock | (1,575) | |
Proceeds from life insurance | 575 | |
Purchase of premises and equipment | (719) | (71) |
Investment in partnership interests | (2,035) | (240) |
Net Cash Used In Investing Activities | (116,590) | (78,799) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 22,007 | 39,455 |
Net increase in Federal Home Loan Bank line of credit | 5,340 | 8,377 |
Proceeds from Federal Home Loan Bank advances | 1,570,000 | 75,000 |
Repayment of Federal Home Loan Bank advances | (1,505,000) | (75,000) |
Net increase in other borrowings | 7,195 | |
Net decrease in advance payments by borrowers for taxes and insurance | (512) | (871) |
Taxes paid on stock award shares for employees | (30) | (48) |
Purchase of treasury shares | (1,648) | |
Dividends paid on common stock | (908) | (1,715) |
Net Cash Provided By Financing Activities | 96,444 | 45,198 |
Net Increase (Decrease) in Cash and Cash Equivalents | (3,387) | 7,164 |
Cash and cash equivalents at beginning of period | 41,665 | 33,428 |
Cash and Cash Equivalents at End of Period | $ 38,278 | $ 40,592 |
Presentation of Interim Informa
Presentation of Interim Information | 3 Months Ended |
Dec. 31, 2022 | |
Presentation of Interim Information | |
Presentation of Interim Information | 1. Presentation of Interim Information First Savings Financial Group, Inc. (the “Company”) is a financial holding company and the parent of First Savings Bank (the “Bank”) and First Savings Insurance Risk Management, Inc. (the “Captive”). The Bank, which is a wholly-owned Indiana-chartered commercial bank subsidiary of the Company, provides a variety of banking services to individuals and business customers through 16 locations in southern Indiana. The Bank attracts deposits primarily from the general public and uses those funds, along with other borrowings, primarily to originate commercial mortgage, residential mortgage, construction, commercial business and consumer loans, and to a lesser extent, to invest in mortgage-backed securities, municipal bonds and other investment securities. The Bank has three wholly-owned subsidiaries: Q2 Business Captial, LLC(“Q2”), an Indiana limited liability company that specializes in the origination and servicing of U.S. Small Business Administration (“SBA”) loans, First Savings Investments, Inc., a Nevada corporation that manages a securities portfolio, and Southern Indiana Financial Corporation, which is currently inactive. The Captive, which is a wholly-owned insurance subsidiary of the Company, is a Nevada corporation that provides property and casualty insurance to the Company, the Bank and the Bank’s active subsidiaries. In addition, the Captive provides reinsurance to 11 other third-party insurance captives for which insurance may not be currently available or economically feasible in the insurance marketplace. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments considered necessary to present fairly the financial position as of December 31, 2022, the results of operations for the three- month periods ended December 31, 2022 and 2021, and the cash flows for the three-month periods ended December 31, 2022 and 2021. All of these adjustments are of a normal, recurring nature. Such adjustments are the only adjustments included in the unaudited condensed consolidated financial statements. Interim results are not necessarily indicative of results for a full year. The unaudited condensed consolidated financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements, conform to general practices within the banking industry and are presented as permitted by the instructions to Form 10-Q. Accordingly, they do not contain certain information included in the Company’s audited consolidated financial statements and related notes for the year ended September 30, 2022 included in the Company’s Annual Report on Form 10-K/A. The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Loans and Allowance for Loan Losses Loans Held for Investment Loans are stated at unpaid principal balances, less net deferred loan fees and the allowance for loan losses. Loan origination and commitment fees, as well as certain direct costs of underwriting and closing loans, are deferred and amortized as a yield adjustment to interest income over the lives of the related loans using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. Nonaccrual Loans The recognition of income on a loan is discontinued and previously accrued interest is reversed when interest or principal payments become 90 days past due unless, in the opinion of management, the outstanding interest remains collectible. Past due status is determined based on contractual terms. Generally, by applying the cash receipts method, interest income on nonaccrual loans is subsequently recognized only as received until the loan is returned to accrual status. The cash receipts method is used when the likelihood of further loss on the loan is remote. Otherwise, the Company applies the cost recovery method and applies all payments as a reduction of the unpaid principal balance until the loan qualifies for return to accrual status. Interest income on impaired loans is recognized using the cost recovery method, unless the likelihood of further loss is considered remote. A loan is restored to accrual status when all principal and interest payments are brought current and the borrower has demonstrated the ability to make future payments of principal and interest as scheduled, which generally requires that the borrower demonstrate a period of performance of at least six consecutive months. Loan Charge-Offs For portfolio segments other than consumer loans, the Company’s practice is to charge-off any loan or portion of a loan when the loan is determined by management to be uncollectible due to the borrower’s failure to meet repayment terms, the borrower’s deteriorating or deteriorated financial condition, depreciation of the underlying collateral, the loan’s classification as a loss by regulatory examiners, or for other reasons. A partial charge-off is recorded on a loan when the uncollectibility of a portion of the loan has been confirmed, such as when a loan is discharged in bankruptcy, the collateral is liquidated, a loan is restructured at a reduced principal balance, or other identifiable events that lead management to determine the full principal balance of the loan will not be repaid. A specific reserve is recognized as a component of the allowance for estimated losses on loans individually evaluated for impairment. Partial charge-offs of loans are included in the Company’s historical loss experience used to estimate the general component of the allowance for loan losses as discussed below. Consumer loans not secured by real estate are typically charged off at 90 days past due, or earlier if deemed uncollectible, unless the loans are in the process of collection. Overdrafts are charged off after 45 days past due. Charge-offs are typically recorded on loans secured by real estate when the property is foreclosed upon when the carrying value of the loan exceeds the property’s fair value, less estimated costs to sell. Allowance for Loan Losses The allowance for loan losses reflects management’s judgment of probable incurred loan losses at the balance sheet date. Additions to the allowance for loan losses are made by the provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company evaluates the allowance for loan losses on a quarterly basis based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are individually evaluated for impairment. A specific reserve is established when the underlying discounted collateral value (or present value of estimated future cash flows) of the impaired loan is lower than the carrying value of that loan. The general component covers loans not considered to be impaired. Such loans are pooled by segment and losses are modeled using annualized historical loss experience adjusted for qualitative factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 60-month period with the exception of the SBA loan portfolio which uses lookback periods of 24 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 December 31, 2022, the Company’s allowance for loan losses totaled $16.1 million, of which $14.1 million related to qualitative factor adjustments. 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. 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. 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 three-month period ended December 31, 2022. 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. |
Investment Securities
Investment Securities | 3 Months Ended |
Dec. 31, 2022 | |
Investment Securities | |
Investment Securities | 2. Investment Securities U.S. agency bonds and notes, agency mortgage-backed securities and agency collateralized mortgage obligations (“CMO”) include treasury notes issued by the U.S. government; securities issued by the Government National Mortgage Association (“GNMA”), a U.S. government agency; and securities issued by the Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”) and the Federal Home Loan Bank (“FHLB”), which are U.S. government sponsored enterprises. The Company holds municipal bonds issued by municipal governments within the U.S. The Company also holds pass-through asset-backed securities guaranteed by the SBA representing participating interests in pools of long term debentures issued by state and local development companies certified by the SBA. Privately issued CMO and asset-backed securities (“ABS”) are complex securities issued by non-government special purpose entities that are collateralized by residential mortgage loans and residential home equity loans. Investment securities have been classified according to management’s intent. Securities Available for Sale and Held to Maturity The amortized cost of securities available for sale and held to maturity and their approximate fair values are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gain Losses Value (In thousands) December 31, 2022: Securities available for sale: U.S. Treasury bills and notes $ 31,327 $ — $ 3,419 $ 27,908 Agency mortgage-backed 30,139 3 2,981 27,161 Agency CMO 14,924 — 1,004 13,920 Privately-issued CMO 457 3 31 429 Privately-issued ABS 519 16 8 527 SBA certificates 12,094 — 306 11,788 Municipal bonds 263,754 917 17,241 247,430 Total securities available for sale $ 353,214 $ 939 $ 24,990 $ 329,163 Securities held to maturity: Agency mortgage-backed $ 42 $ — $ — $ 42 Municipal bonds 1,478 28 — 1,506 Total securities held to maturity $ 1,520 $ 28 $ — $ 1,548 Gross Gross Amortized Unrealized Unrealized Fair Cost Gain Losses Value (In thousands) September 30, 2022: Securities available for sale: U.S. Treasury bills and 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 The amortized cost and fair value of investment securities as of December 31, 2022 by contractual maturity are shown below. CMO, ABS, SBA certificates, and mortgage-backed securities which do not have a single maturity date are shown separately. Available for Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value (In thousands) Due within one year $ 11,725 $ 11,694 $ 249 $ 252 Due after one year through five years 23,467 23,408 755 769 Due after five years through ten years 70,249 66,736 474 485 Due after ten years 189,640 173,500 — — CMO 15,381 14,349 — — ABS 519 527 — — SBA certificates 12,094 11,788 — — Mortgage-backed securities 30,139 27,161 42 42 $ 353,214 $ 329,163 $ 1,520 $ 1,548 Information pertaining to investment securities with gross unrealized losses at December 31, 2022 and September 30, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, follows: Number of Gross Investment Fair Unrealized Positions Value Losses (Dollars in thousands) December 31, 2022: Securities available for sale: Continuous loss position less than twelve months: U.S. Treasury bills and notes 8 $ 27,668 $ 3,419 Agency mortgage-backed 12 23,650 2,236 Agency CMO 11 11,709 626 Privately-issued CMO 1 405 31 SBA certificates 2 10,749 285 Municipal bonds 201 159,011 15,620 Total less than twelve months 235 233,192 22,217 Continuous loss position more than twelve months: Agency mortgage-backed 1 3,056 745 Agency CMO 4 2,211 378 Privately-issued ABS 1 262 8 SBA certificates 2 1,039 21 Municipal bonds 9 6,830 1,621 Total more than twelve months 17 13,398 2,773 Total securities available for sale 252 $ 246,590 $ 24,990 September 30, 2022: Securities available for sale: Continuous loss position less than twelve months: U.S. Treasury bills and 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 At December 31, 2022 and September 30, 2021, the Company did not have any securities held to maturity with an unrealized loss. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The total available for sale debt securities in loss positions at December 31, 2022, which consisted of U.S. Treasury bills and notes, agency mortgage-backed securities, agency CMOs, privately-issued CMOs, privately-issued ABS, municipal bonds and SBA certificates, had a fair value as a percentage of amortized cost of 90.0%. The municipal securities are issued by municipal governments, and are generally secured by municipal project revenues or general obligations of the municipality. The Company evaluates the existence of a potential credit loss component related to the decline in fair value of the privately issued CMO and ABS portfolios each quarter using an independent third party analysis. At December 31, 2022, the Company held four privately-issued CMO and ABS securities, acquired in a 2009 bank merger, with an aggregate amortized cost of $345,000 and fair value of $341,000 that have been downgraded to a substandard regulatory classification due to the security’s credit quality rating by various rating agencies. At December 31, 2022, five privately-issued CMO securities and one privately-issued ABS were in a loss position, and had depreciated approximately 5.52% from the Company’s carrying value and were collateralized by residential mortgage loans. These securities had a total fair value of $667,000 and a total unrealized loss of $39,000 at December 31, 2022. Based on the independent third party analysis of the expected cash flows, management determined that $28,000 of other-than-temporary impairment was required to be recognized on the privately issued CMO and ABS portfolios at December 31, 2022. While the Company does not anticipate additional credit-related impairment losses at December 31, 2022, additional deterioration in market and economic conditions may have an adverse impact on the credit quality of the portfolio, and therefore, require a credit related impairment charge in the future. The unrealized losses on U.S. Treasury bills and notes, agency mortgage-backed securities, agency CMOs, SBA certificates and municipal bonds relate principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. As management has the ability to hold debt securities to maturity, or for the foreseeable future if classified as available for sale, no declines are deemed to be other-than-temporary. During the three-month periods ended December 31, 2022 and 2021, the Company did not realize any gross gains or losses on sales of available for sale securities. At December 31, 2022 and September 30, 2022, available for sale debt securities with a total fair value of $57.6 million and $58.6 million, respectively, were pledged to secure FHLB borrowings. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Dec. 31, 2022 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | 3. Loans and Allowance for Loan Losses Loans at December 31, 2022 and September 30, 2022 consisted of the following: December 31, September 30, 2022 2022 (In thousands) Real estate mortgage: 1-4 family residential $ 413,015 $ 368,211 Commercial 178,770 169,861 Single tenant net lease 733,134 674,567 SBA (1) 52,917 59,379 Multifamily residential 32,489 32,411 Residential construction 21,224 18,261 Commercial construction 4,612 5,938 Land and land development 11,054 11,880 Commercial business 92,025 90,010 SBA commercial business (1)(2) 20,353 20,282 Consumer 38,367 38,052 Total loans 1,597,960 1,488,852 Deferred loan origination fees and costs, net (3) 1,060 1,052 Allowance for loan losses (16,080) (15,360) Loans, net $ 1,582,940 $ 1,474,544 (1) Includes discounts on SBA loans of $4.1 $4.3 (2) Includes $591,000 and $650,000 of loans originated under the SBA’s Paycheck Protection Program (“PPP”) at December 31, 2022 and September 30, 2022, respectively. (3) Includes $10,000 and $11,000 of net deferred loan fees related to PPP loans as of December 31, 2022 and September 30, 2022, respectively. During the three-month period ended December 31, 2022, there were no significant changes in the Company’s lending activities or the methodology used to estimate the allowance for loan losses as disclosed in the Company’s Annual Report on Form 10-K/A for the year ended September 30, 2022. At December 31, 2022 and September 30, 2022, the Company did not own any residential real estate properties where physical possession has been obtained. At December 31, 2022 and September 30, 2022, the recorded investment in consumer mortgage loans collateralized by residential real estate properties in the process of foreclosure was $206,000 and $204,000, respectively. The following table provides the components of the recorded investment in loans as of December 31, 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 $ 413,015 $ 2,035 $ 143 $ 415,193 Commercial real estate 178,770 572 (328) 179,014 Single tenant net lease 733,134 2,188 108 735,430 SBA commercial real estate 52,917 672 1,048 54,637 Multifamily 32,489 64 (39) 32,514 Residential construction 21,224 45 (89) 21,180 Commercial construction 4,612 12 (28) 4,596 Land and land development 11,054 24 (11) 11,067 Commercial business 92,025 374 30 92,429 SBA commercial business 20,353 212 246 20,811 Consumer 38,367 148 (20) 38,495 $ 1,597,960 $ 6,346 $ 1,060 $ 1,605,366 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 $ 2,967 $ 412,226 $ 415,193 Commercial real estate 881 178,133 179,014 Single tenant net lease — 735,430 735,430 SBA commercial real estate 7,445 47,192 54,637 Multifamily 346 32,168 32,514 Residential construction — 21,180 21,180 Commercial construction — 4,596 4,596 Land and land development — 11,067 11,067 Commercial business 904 91,525 92,429 SBA commercial business 1,249 19,562 20,811 Consumer 311 38,184 38,495 $ 14,103 $ 1,591,263 $ 1,605,366 The following table provides the components of the recorded investment in loans as of September 30, 2022: 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 $ 368,211 $ 1,701 $ 136 $ 370,048 Commercial real estate 169,861 533 (304) 170,090 Single tenant net lease 674,567 1,979 47 676,593 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 $ 1,488,852 $ 5,379 $ 1,052 $ 1,495,283 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 — 676,593 676,593 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 19,572 20,663 Consumer 238 37,914 38,152 $ 13,570 $ 1,481,713 $ 1,495,283 The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of December 31, 2022 and September 30, 2022: Individually Collectively Evaluated for Evaluated for Ending Impairment Impairment Balance (In thousands) December 31, 2022: Residential real estate $ — $ 3,100 $ 3,100 Commercial real estate — 1,751 1,751 Single tenant net lease — 3,804 3,804 SBA commercial real estate 83 2,315 2,398 Multifamily — 252 252 Residential construction — 367 367 Commercial construction — 83 83 Land and land development — 200 200 Commercial business 28 1,227 1,255 SBA commercial business 714 1,624 2,338 Consumer — 532 532 $ 825 $ 15,255 $ 16,080 September 30, 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 The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended December 31, 2022 and 2021: Beginning Balance Provisions (Credits) Charge-Offs Recoveries Ending Balance (In thousands) December 31, 2022: Residential real estate $ 2,716 $ 382 $ — $ 2 $ 3,100 Commercial real estate 1,590 161 — — 1,751 Single tenant net lease 3,838 (34) — — 3,804 SBA commercial real estate 2,578 (106) (74) — 2,398 Multifamily 251 1 — — 252 Residential construction 305 62 — — 367 Commercial construction 107 (24) — — 83 Land and land development 212 (12) — — 200 Commercial business 1,193 32 — 30 1,255 SBA commercial business 2,122 390 (190) 16 2,338 Consumer 448 132 (65) 17 532 $ 15,360 $ 984 $ (329) $ 65 $ 16,080 December 31, 2021: Residential real estate $ 1,438 $ (82) $ (23) $ 3 $ 1,336 Commercial real estate 2,806 (295) — — 2,511 Single tenant net lease 2,422 345 — — 2,767 SBA commercial real estate 3,475 267 (20) — 3,722 Multifamily 518 (77) — — 441 Residential construction 191 18 — — 209 Commercial construction 63 17 — — 80 Land and land development 235 (14) — — 221 Commercial business 1,284 (44) — — 1,240 SBA commercial business 1,346 401 — 22 1,769 Consumer 523 (10) (38) 9 484 $ 14,301 $ 526 $ (81) $ 34 $ 14,780 The following table presents impaired loans individually evaluated for impairment as of December 31, 2022 and for the three months ended December 31, 2022 and 2021. The Company did not recognize any interest income on impaired loans using the cash receipts method during the three-month periods ended December 31, 2022 and 2021. At December 31, 2022 Three Months Ended December 31, 2022 2022 2021 2021 Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income Investment Balance Allowance Investment Recognized Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 2,967 $ 3,257 $ — $ 2,891 $ 15 $ 3,444 $ 16 Commercial real estate 881 959 — 971 7 1,079 7 Single tenant net lease — — — — — — — SBA commercial real estate 6,881 8,115 — 7,033 — 8,102 — Multifamily 346 389 — 393 5 428 — Residential construction — — — — — — — Commercial construction — — — — — — — Land and land development — — — — — — — Commercial business 856 946 — 1,068 12 1,511 2 SBA commercial business 293 982 — 757 — 502 — Consumer 88 72 — 77 — 87 — $ 12,312 $ 14,720 $ — $ 13,190 $ 39 $ 15,153 $ 25 Loans with an allowance recorded: Residential real estate $ — $ — $ — $ — $ — $ 253 $ — Commercial real estate — — — — — — — Single tenant net lease — — — — — — — SBA commercial real estate 564 587 83 1,665 — 1,025 — Multifamily — — — — — — — Residential construction — — — — — — — Commercial construction — — — — — — — Land and land development — — — — — — — Commercial business 48 135 28 67 — — — SBA commercial business 956 1,214 714 1,267 — 219 — Consumer 223 223 — 184 — 138 — $ 1,791 $ 2,159 $ 825 $ 3,183 $ — $ 1,635 $ — Total: Residential real estate $ 2,967 $ 3,257 $ — $ 2,891 $ 15 $ 3,697 $ 16 Commercial real estate 881 959 — 971 7 1,079 7 Single tenant net lease — — — — — — — SBA commercial real estate 7,445 8,702 83 8,698 — 9,127 — Multifamily 346 389 — 393 5 428 — Residential construction — — — — — — — Commercial construction — — — — — — — Land and land development — — — — — — — Commercial business 904 1,081 28 1,135 12 1,511 2 SBA commercial business 1,249 2,196 714 2,024 — 721 — Consumer 311 295 — 261 — 225 — $ 14,103 $ 16,879 $ 825 $ 16,373 $ 39 $ 16,788 $ 25 The following table presents impaired loans individually evaluated for impairment as of September 30, 2022. Unpaid Recorded Principal Related Investment Balance Allowance (In thousands) Loans with no related allowance recorded: Residential real estate $ 2,248 $ 2,524 $ — Commercial real estate 907 982 — Single tenant net lease — — — SBA commercial real estate 5,337 5,952 — Multifamily 354 398 — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 1,007 1,189 — SBA commercial business 221 532 — Consumer 93 81 — $ 10,167 $ 11,658 $ — Loans with an allowance recorded: Residential real estate $ — $ — $ — Commercial real estate — — — Single tenant net lease — — — SBA commercial real estate 2,388 2,919 290 Multifamily — — — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business — — — SBA commercial business 870 1,349 674 Consumer 145 145 — $ 3,403 $ 4,413 $ 964 Total: Residential real estate $ 2,248 $ 2,524 $ — Commercial real estate 907 982 — Single tenant net lease — — — SBA commercial real estate 7,725 8,871 290 Multifamily 354 398 — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 1,007 1,189 — SBA commercial business 1,091 1,881 674 Consumer 238 226 — $ 13,570 $ 16,071 $ 964 Nonperforming loans consist of nonaccrual loans and loans over 90 days past due and still accruing interest. The following table presents the recorded investment in nonperforming loans at December 31, 2022 and September 30, 2022: At December 31, 2022 At September 30, 2022 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 $ 1,946 $ — $ 1,946 $ 1,213 $ — $ 1,213 Commercial real estate 498 — 498 516 — 516 Single tenant net lease — — — — — — SBA commercial real estate 7,445 — 7,445 7,725 — 7,725 Multifamily — — — — — — Residential construction — — — — — — Commercial construction — — — — — — Land and land development — — — — — — Commercial business 74 — 74 73 — 73 SBA commercial business 1,249 — 1,249 1,091 — 1,091 Consumer 311 — 311 238 — 238 Total $ 11,523 $ — $ 11,523 $ 10,856 $ — $ 10,856 The following table presents the aging of the recorded investment in past due loans at December 31, 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 $ 1,508 $ 229 $ 715 $ 2,452 $ 412,741 $ 415,193 Commercial real estate 259 — 498 757 178,257 179,014 Single tenant net lease — — — — 735,430 735,430 SBA commercial real estate 262 6 3,172 3,440 51,197 54,637 Multifamily — — — — 32,514 32,514 Residential construction — — — — 21,180 21,180 Commercial construction — — — — 4,596 4,596 Land and land development — — — — 11,067 11,067 Commercial business 65 — 47 112 92,317 92,429 SBA commercial business — — 805 805 20,006 20,811 Consumer 3 — 54 57 38,438 38,495 Total $ 2,097 $ 235 $ 5,291 $ 7,623 $ 1,597,743 $ 1,605,366 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 — — — — 676,593 676,593 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 $ 1,489,277 $ 1,495,283 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, public information, historical payment experience, credit documentation, and current economic conditions and trends, among other factors. The Company classifies loans based on credit risk at least quarterly. The Company uses the following regulatory definitions for risk ratings: Special Mention: Substandard: Doubtful: Loss: Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table presents the recorded investment in loans by risk category as of December 31, 2022: Special December 31, 2022: Pass Mention Substandard Doubtful Loss Total (In thousands) Residential real estate $ 413,063 $ — $ 1,955 $ 175 $ — $ 415,193 Commercial real estate 178,306 — 708 — — 179,014 Single tenant net lease 735,430 — — — — 735,430 SBA commercial real estate 46,070 1,123 5,805 1,639 — 54,637 Multifamily 32,514 — — — — 32,514 Residential construction 21,180 — — — — 21,180 Commercial construction 4,596 — — — — 4,596 Land and land development 11,067 — — — — 11,067 Commercial business 92,217 125 87 — — 92,429 SBA commercial business 17,248 850 2,669 44 — 20,811 Consumer 38,406 — 89 — — 38,495 Total $ 1,590,097 $ 2,098 $ 11,313 $ 1,858 $ — $ 1,605,366 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 676,593 — — — — 676,593 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 $ 1,479,457 $ 1,677 $ 12,273 $ 1,876 $ — $ 1,495,283 Troubled Debt Restructurings Modification of a loan is considered to be a troubled debt restructuring (“TDR”) if the debtor is experiencing financial difficulties and the Company grants a concession to the debtor that it would not otherwise consider. By granting the concession, the Company expects to obtain more cash or other value from the debtor, or to increase the probability of receipt, than would be expected by not granting the concession. The concession may include, but is not limited to, reduction of the stated interest rate of the loan, reduction of accrued interest, extension of the maturity date or reduction of the face amount or maturity amount of the debt. A concession will be granted when, as a result of the restructuring, the Company does not expect to collect all amounts due, including interest at the original stated rate. A concession may also be granted if the debtor is not able to access funds elsewhere at a market rate for debt with similar risk characteristics as the restructured debt. The Company’s determination of whether a loan modification is a TDR considers the individual facts and circumstances surrounding each modification. Loans modified in a TDR may be retained on accrual status if the borrower has maintained a period of performance in which the borrower’s lending relationship was not greater than ninety days delinquent at the time of restructuring and the Company determines the future collection of principal and interest is reasonably assured. Loans modified in a TDR that are placed on nonaccrual status at the time of restructuring will continue on nonaccrual status until the Company determines the future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrate a period of performance according to the restructured terms of at least six consecutive months. TDRs on nonaccrual status are evaluated individually for purposes of calculating an allowance for loan losses while performing TDRs are evaluated collectively. The following table summarizes the Company’s recorded investment in TDRs at December 31, 2022 and September 30, 2022. There was $125,000 of specific reserve included in the allowance for loan losses related to TDRs at December 31, 2022. 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) December 31, 2022: Residential real estate $ 1,021 $ — $ 1,021 Commercial real estate 383 420 803 SBA commercial real estate — 1,604 1,604 Multifamily 346 — 346 Commercial business 830 — 830 SBA commercial business — 262 262 Total $ 2,580 $ 2,286 $ 4,866 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 There were no TDRs that were restructured during the three- months ended December 31, 2022 and 2021. At December 31, 2022 and September 30, 2022, the Company had committed to lend $1,000 to customers with outstanding loans classified as TDRs. There were principal charge-offs totaling $3,000 as a result of loans previously designated as TDRs during the three-month period ended December 31, 2022. There were no principal charge-offs recorded as a result of TDRs during the three-month periods ended December 31, 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 three -month periods ended December 31, 2022 and 2021, the Company did not have any TDRs that were modified within the previous twelve months and for which there was a payment default. SBA Loan Servicing Rights The Company originates loans to commercial customers under the SBA 7(a) program and other programs, and sells the guaranteed portion of the SBA loans with servicing rights retained. Loan servicing rights on originated SBA loans that have been sold are initially recorded at fair value. Capitalized SBA servicing rights are then amortized in proportion to and over the period of estimated net servicing income. Impairment of SBA servicing rights is assessed using the present value of estimated future cash flows. The aggregate fair value of SBA loan servicing rights approximates its carrying value. A valuation model employed by an independent third party calculates the present value of future cash flows and is used to estimate fair value at the date of sale and on a quarterly basis for impairment analysis purposes. Management periodically compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Key assumptions used to estimate the fair value of the SBA loan servicing rights include the discount rate and prepayment speed assumptions. For purposes of impairment, risk characteristics such as interest rate, loan type, term and investor type are used to stratify the SBA loan servicing rights. Impairment is recognized through a valuation allowance to the extent that fair value is less than the carrying amount. Changes in the valuation allowance are reported in other noninterest income in the consolidated statements of income. The unpaid principal balance of SBA loans serviced for others was $237.9 million, $238.9 million and $250.5 million at December 31, 2022, September 30, 2022 and December 31, 2021, respectively. Contractually specified late fees and ancillary fees earned on SBA loans were $21,000 and $20,000 for the three-month periods ended December 31, 2022 and 2021, respectively. Net servicing income (contractually specified servicing fees offset by direct servicing expenses) related to SBA loans was $553,000 and $627,000 for the three-month periods ended December 31, 2022 and 2021, respectively. Net servicing income and costs related to SBA loans are included in other noninterest income in the consolidated statements of income. An analysis of SBA loan servicing rights for the three-month periods ended December 31, 2022 and 2021 is as follows: 2022 2021 (In thousands) Balance, beginning of period $ 3,790 $ 4,447 Servicing rights capitalized 198 346 Amortization (195) (288) Direct write-offs (141) (35) Change in valuation allowance (351) (41) Balance, end of period $ 3,301 $ 4,429 There was a valuation allowance of $530,000 and $179,000 related to SBA loan servicing rights at December 31, 2022 and September 30, 2022, respectively. Mortgage Servicing Rights (“MSRs”) The Company originates residential mortgage loans for sale in the secondary market and retains servicing for certain of these loans when they are sold. MSRs retained for originated loans that have been sold are accounted for at fair value. The fair value of MSRs are determined using the present value of estimated expected net servicing income using assumptions about expected mortgage loan prepayment rates, discount rate, servicing costs, and other economic factors, which are determined based on current market conditions. Changes in these underlying assumptions could cause the fair value of MSRs to change significantly in the future. Changes in fair value of MSRs are recorded in mortgage banking income in the accompanying consolidated statements of income. MSRs are subject to changes in value from, among other things, changes in interest rates, prepayments of the underlying loans and changes in the credit quality of the underlying loans. A valuation model employed by an independent third party calculates the present value of future cash flows and is used to value the MSRs on a monthly basis. Management periodically compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Key assumptions, which are significant unobservable inputs, used to estimate the fair value of the MSRs at December 31, 2022 and September 30, 2022 were as follows: Range of Assumption Range of Assumption (Weighted Average) (Weighted Average) Assumption December 31, 2022 September 30, 2022 Discount rate 9.50% to 14.50% (9.52%) 9.50% to 14.50% (9.51%) Prepayment rate 3.75% to 85.80% (6.69%) 6.01% to 74.89% (6.63%) The unpaid principal balance of residential mortgage loans serviced for others was $4.82 billion and $4.88 billion at December 31, 2022 and September 30, 2022, respectively. Custodial escrow balances maintained in connection with the foregoing loan servicing and other liabilities were $28.8 million and $46.0 million at December 31, 2022 and September 30, 2022, respectively. Contractually specified servicing fees (net of direct servicing expenses), late fees and other ancillary fees related to residential mortgage loans serviced for others were $2.4 million and $2.1 million for the three-month periods ended December 31, 2022 and 2021, respectively. Contractually specified servicing fees are included in mortgage banking income in the consolidated statements of income. Changes in the carrying value of MSRs accounted for at fair value for the three-month periods ended December 31, 2022 and 2021 were as follows: 2022 2021 (In thousands) Fair value, beginning of period $ 63,263 $ 49,579 Servicing rights capitalized 142 4,504 Changes in fair value related to: Loan repayments (1,023) (2,492) Change in valuation model inputs or assumptions (217) 3,167 Balance, end of period $ 62,165 $ 54,758 Nonresidential MSRs The Company also periodically sells single tenant net lease loans with servicing rights retained. Loan servicing rights on these nonresidential mortgage loans are initially recorded at fair value and are then amortized in proportion to and over the period of estimated net servicing income. Impairment of nonresidential MSRs is assessed using the present value of estimated future cash flows. The aggregate fair value of nonresidential MSRs approximates its carrying value. A valuation model employed by management 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 nonresidential MSRs include the discount rate and prepayment speed assumptions. 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 nonresidential mortgage loans serviced for others was $44.0 million and $44.6 million at December 31, 2022 and September 30, 2022, respectively. Contractually specified servicing fees, late fees and other ancillary fees related to nonresidential mortgage loans serviced for others were $9,000 and $11,000 for the three-month periods ended December 31, 2022. Contractually specified servicing fees on nonresidential mortgage loans serviced for others are included in other noninterest income in the consolidated statements of income. An analysis of nonresidential MSRs for the three-month periods ended December 31, 2022 and 2021 is as follows: 2022 2021 (In thousands) Balance, beginning of period $ 141 $ — Servicing rights capitalized — — Amortization (9) — Direct write-offs — — Change in valuation allowance — — Balance, end of period $ 132 $ — There was no valuation allowance related to nonresidential MSRs at December 31, 2022 and September 30, 2022. |
Deposits
Deposits | 3 Months Ended |
Dec. 31, 2022 | |
Deposits. | |
Deposits | 4. Deposits Deposits at December 31, 2022 and September 30, 2022 consisted of the following: December 31, September 30, 2022 2022 (In thousands) Noninterest-bearing demand deposits $ 315,390 $ 340,172 NOW accounts 345,597 343,296 Money market accounts 243,443 238,219 Savings accounts 170,732 171,779 Retail time deposits 136,515 129,864 Brokered & reciprocal time deposits 326,164 292,504 Total $ 1,537,841 $ 1,515,834 |
Supplemental Disclosure for Net
Supplemental Disclosure for Net Income Per Share | 3 Months Ended |
Dec. 31, 2022 | |
Supplemental Disclosure for Net Income Per Share | |
Supplemental Disclosure for Net Income Per Share | 5. Supplemental Disclosure for Net Income Per Share Net income per share information is presented below for the three -month periods ended December 31, 2022 and 2021. All share and per share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. Three Months Ended December 31, (In thousands, except share and per share data) 2022 2021 Basic: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 2,871 $ 4,305 Shares: Weighted average common shares outstanding, basic 6,915,909 7,116,790 Net income per common share, basic $ 0.42 $ 0.60 Diluted: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 2,871 $ 4,305 Shares: Weighted average common shares outstanding, basic 6,915,909 7,116,790 Add: Dilutive effect of outstanding options 53,229 81,177 Add: Dilutive effect of restricted stock 2,917 9,243 Weighted average common shares outstanding, as adjusted 6,972,055 7,207,210 Net income per common share, diluted $ 0.41 $ 0.60 Nonvested restricted stock shares are not considered as outstanding for purposes of computing weighted average common shares outstanding. Stock options for 275,889 and 137,250 shares of common stock were excluded from the calculation of diluted net income per common share for the three -month periods ended December 31, 2022 and 2021, respectively, because their effect was antidilutive. There were no antidilutive restricted stock awards excluded from the calculation of diluted net income per share for the three -month periods ended December 31, 2022 and 2021. |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 3 Months Ended |
Dec. 31, 2022 | |
Supplemental Disclosures of Cash Flow Information | |
Supplemental Disclosures of Cash Flow Information | 6. Supplemental Disclosures of Cash Flow Information Three Months Ended December 31, 2022 2021 (In thousands) Cash payments for: Interest $ 6,540 $ 1,866 Income taxes (net of refunds received) (117) (5) |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | 3 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | 7. Fair Value Measurements and Disclosures about Fair Value of Financial Instruments FASB Accounting Standards Codification (“ASC”) Topic 820 , Fair Value Measurements, Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted market price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. Level 2: Inputs to the valuation methodology include quoted market prices for similar assets or liabilities in active markets; quoted market prices for identical or similar assets or liabilities in markets that are not active; or inputs that are derived principally from or can be corroborated by observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. The tables below present the balances of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis as of December 31, 2022 and September 30, 2022. Carrying Value Level 1 Level 2 Level 3 Total (In thousands) December 31, 2022: Assets Measured – Recurring Basis: Securities available for sale: U.S. Treasury bills and notes $ — $ 27,908 $ — $ 27,908 Agency mortgage-backed — 27,161 — 27,161 Agency CMO — 13,920 — 13,920 Privately-issued CMO — 429 — 429 Privately-issued ABS — 527 — 527 SBA certificates — 11,788 — 11,788 Municipal — 247,430 — 247,430 Total securities available for sale $ — $ 329,163 $ — $ 329,163 Residential mortgage loans held for sale $ — $ 20,675 $ — $ 20,675 Derivative assets (included in other assets) $ — $ 79 $ 377 $ 456 Equity securities (included in other assets) $ 117 $ — $ — $ 117 Residential mortgage servicing rights $ — $ — $ 62,165 $ 62,165 Liabilities Measured – Recurring Basis: Derivative liabilities (included in other liabilities) $ — $ 95 $ 15 $ 110 Assets Measured – Nonrecurring Basis: Collateral dependent loans: Residential real estate $ — $ — $ — $ — Commercial real estate — — — — SBA commercial real estate — — 2,576 2,576 Multifamily — — — — Commercial business — — 20 20 SBA commercial business — — 389 389 Consumer — — — — Total impaired loans $ — $ — $ 2,985 $ 2,985 SBA loan servicing rights $ — $ — $ 3,301 $ 3,301 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) September 30, 2022: Assets Measured – Recurring Basis Securities available for sale: U.S. Treasury bills and 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 $ — $ 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 Collateral dependent 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 Fair value is based upon quoted market prices where available. If quoted market prices are not available, fair value is based on internally developed models or obtained from third parties that primarily use, as inputs, observable market-based parameters or a matrix pricing model that employs the Bond Market Association’s standard calculations for cash flow and price/yield analysis and observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, or at the lower of cost or fair value. These adjustments may include unobservable parameters. Any such valuation adjustments have been applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. There have been no changes in the valuation techniques and related inputs used for assets measured at fair value on a recurring and nonrecurring basis during the three-month period ended December 31, 2022. Securities Available for Sale and Equity Securities. Residential Mortgage Loans Held for Sale SBA and Single Tenant Net Lease Loans Held for Sale Derivative Financial Instruments The fair value of interest rate lock commitments is also obtained from an independent third party and is based on investor prices for the underlying loans or current secondary market prices for loans with similar characteristics, less estimated costs to originate the loans and adjusted for the anticipated funding probability (pull-through rate). The fair value of interest rate lock commitments is classified as Level 3 in the fair value hierarchy. The table below presents a reconciliation of derivative assets and liabilities (interest rate lock commitments) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three -month periods ended December 31, 2022 and 2021: Three Months Ended December 31, (In thousands) 2022 2021 Beginning balance $ (238) $ 1,567 Unrealized gains recognized in earnings, net of settlements 600 173 Ending balance $ 362 $ 1,740 The realized and unrealized gains recognized in earnings in the table above are included in mortgage banking income on the accompanying consolidated statements of income. Gains recognized in earnings for the three-month periods ended December 31, 2022 and 2021 attributable to Level 3 derivative assets and liabilities held at the balance sheet date were $361,000 and $1.7 million, respectively. The table below presents information about significant unobservable inputs (Level 3) used in the valuation of derivative financial instruments measured at fair value on a recurring basis as of December 31, 2022 and September 30, 2022. Range of Inputs Range of Inputs Significant (Weighted Average) (Weighted Average) Unobservable December 31, September 30, Financial Instrument Inputs 2022 2022 Interest rate lock commitments Pull-through rate 31% - 100% (68%) 50% - 100% (78%) Direct costs to close 0.00% - 5.10% (0.50%) 0.00% - 4.00% (0.70%) Residential Mortgage Servicing Rights . Collateral Dependent Loans The fair value of impaired loans is based on the fair value of the underlying collateral less estimated costs to sell. Collateral may be real estate and/or business assets, including equipment, inventory and/or accounts receivable. The fair value of the collateral is generally determined based on real estate appraisals or other independent evaluations by qualified professionals, adjusted for estimated costs to sell the property, costs to complete or repair the property and other factors to reflect management’s estimate of the fair value of the collateral given the current market conditions and the condition of the collateral. The fair value of impaired loans is classified as Level 3 in the fair value hierarchy. At December 31, 2022 and September 30, 2022, the significant unobservable inputs used in the fair value measurement of impaired loans included discounts due to marketability from appraised value ranging from 0.0% to 100.0%, for both periods, and estimated costs to sell the collateral ranging from 0.0% to 10.0% for both periods. During the three -month periods ended December 31, 2022, the Company recognized provisions for loan losses on impaired loans of $200,000 and $691,000, respectively. SBA and Nonresidential Loan Servicing Rights 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 December 31, 2022 and September 30, 2022, 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 three-month periods ended December 31, 2022 and 2021. Other Real Estate Owned Other real estate owned is reported at fair value, less estimated costs to dispose of the property. The fair values are determined by real estate appraisals, which are then generally discounted by management in order to reflect management’s estimate of the fair value of the property given current market conditions and the condition of the property. At December 31, 2022 and September 30, 2022, the Company did not have any other real estate owned measured at fair value on a nonrecurring basis. The Company did not recognize any charges to write down other real estate owned to fair value for the three -month periods ended December 31, 2022 and 2021. There were no transfers into or out of the Company’s Level 3 financial assets of the fair value hierarchy for the three -month period ended December 31, 2022. Financial Instruments Recorded Using Fair Value Option. The Company has elected the fair value option for substantially all of its residential mortgage loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loans and in accordance with the Company’s policy on loans held for investment. None of these loans were 90 days or more past due, nor were any on nonaccrual status, as of December 31, 2022 and September 30, 2022. The table below presents the difference between the aggregate fair value and the aggregate remaining principal balance for residential mortgage loans held for sale for which the fair value option had been elected as of December 31, 2022 and September 30, 2022. Aggregate Aggregate Principal Fair Value Balance December 31, December 31, (In thousands) 2022 2022 Difference Residential mortgage loans held for sale $ 20,675 $ 20,196 $ 479 Aggregate Aggregate Principal Fair Value Balance September 30, September 30, (In thousands) 2022 2022 Difference Residential mortgage loans held for sale $ 38,579 $ 38,517 $ 62 The table below presents gains and losses and interest included in earnings related to financial assets measured at fair value under the fair value option for the three- month periods ended December 31, 2022 and 2021: Three Months Ended December 31, (In thousands) 2022 2021 Gains – included in mortgage banking income $ 668 $ 1,623 Interest income 428 994 $ 1,096 $ 2,617 GAAP requires disclosure of fair value information about financial instruments for interim reporting periods, whether or not recognized in the consolidated balance sheet. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows. Carrying Fair Value Measurements Using: Amount Level 1 Level 2 Level 3 (In thousands) December 31, 2022: Financial assets: Cash and due from banks $ 25,226 $ 25,226 $ — $ — Interest-bearing deposits with banks 13,052 13,052 — — Interest-bearing time deposits 1,854 — 1,854 — Securities available for sale 329,163 — 329,163 — Securities held to maturity 1,520 — 1,548 — Residential mortgage loans held for sale 20,675 — 20,675 — Single tenant net lease loans held for sale — — — — SBA loans held for sale 23,606 — — 25,603 Loans, net 1,582,940 — — 1,489,154 FRB and FHLB stock 21,564 N/A N/A N/A Accrued interest receivable 10,436 — 10,436 — Residential mortgage loan servicing rights 62,165 — — 62,165 Nonresidential mortgage loan servicing rights 132 — — 132 SBA loan servicing rights 3,301 — — 3,301 Derivative assets (included in other assets) 456 — 79 377 Equity securities (included in other assets) 117 117 — — Financial liabilities: Deposits 1,537,841 — — 1,533,129 Borrowings from FHLB 377,643 — 372,776 — Subordinated note 50,274 — 48,819 — Other borrowings 45,184 — 45,184 — Accrued interest payable 1,984 — 1,984 — Advance payments by borrowers for taxes and insurance 695 — 695 — Derivative liabilities (included in other liabilities) 110 — 95 15 Carrying Fair Value Measurements Using: Amount Level 1 Level 2 Level 3 (In thousands) 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 1,474,544 — — 1,402,222 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 SBA loan servicing rights 3,790 — — 3,789 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 — Other borrowings 37,989 — — 37,989 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 |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 3 Months Ended |
Dec. 31, 2022 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | 8. Employee Stock Ownership Plan On October 6, 2008, the Company established a leveraged employee stock ownership plan (“ESOP”) covering substantially all employees. The ESOP trust acquired 203,363 shares of Company common stock at a cost of $10.00 per share financed by a term loan with the Company. The ESOP loan was repaid in full during the quarter ended December 31, 2015 and all shares have been allocated to participants in the plan; therefore, no compensation expense was recognized for the three- month periods ended December 31, 2022 and 2021. The ESOP trust held 306,202 shares of Company common stock at December 31, 2022 and September 30, 2022. |
Stock Based Compensation Plans
Stock Based Compensation Plans | 3 Months Ended |
Dec. 31, 2022 | |
Stock Based Compensation Plans | |
Stock Based Compensation Plans | 9. Stock Based Compensation Plans The Company maintains three equity incentive plans under which stock options and restricted stock have been or may be granted, the 2010 Equity Incentive Plan (“2010 Plan”), approved by the Company’s shareholders in February 2010, the 2016 Equity Incentive Plan (“2016 Plan”), approved by the Company’s shareholders in February 2016, and the 2021 Equity Incentive Plan (“2021 Plan”) approved by the Company’s shareholders in February 2021. The aggregate number of shares of the Company’s common stock available for issuance under the 2016 Plan may not exceed 264,000 shares, consisting of 198,000 stock options and 66,000 shares of restricted stock. The aggregate number of shares of the Company’s common stock available for issuance under the 2021 Plan may not exceed 356,058 shares, consisting of 267,043 stock options and 89,015 shares of restricted stock. At December 31, 2022, there were no remaining shares of the Company’s common stock available for issuance under the 2010 Plan. At December 31, 2022, 4,560 shares of the Company’s common stock were available for issuance under the 2016 Plan, of which 1,500 shares were available for restricted stock and 3,060 shares were available for stock options. At December 31, 2022, 85,058 shares of the Company’s common stock were available for issuance under the 2021 Plan, of which 21,265 shares were available for restricted stock and 63,793 shares were available for stock options. The Company generally issues new shares under the 2016 and 2021 Plans from its authorized but unissued shares. The Company accounts for any forfeitures as they occur, and any previously recognized compensation cost for an award is reversed in the period the award is forfeited. Stock Options Under the plans, the Company may grant both non-statutory and incentive stock options that may not have a term exceeding ten years. In the case of incentive stock options, the aggregate fair value (determined at the time the incentive stock options are granted) which are first exercisable during any calendar year shall not exceed $100,000. Exercise prices may not be less than the fair market value of the underlying stock at the date of the grant. The terms of the plans also include provisions whereby all unearned options and restricted shares become immediately exercisable and fully vested upon a change in control. Stock options granted generally vest ratably over five years and are exercisable in whole or in part for a period up to ten years from the date of the grant. Compensation expense is measured based on the fair market value of the options at the grant date and is recognized ratably over the period during which the shares are earned (the vesting period). The fair market value of stock options granted is estimated at the date of grant using a binomial option pricing model. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of options granted represents the period of time that options are expected to be outstanding. The risk free rate for the expected life of the options is based on the U.S. Treasury yield curve in effect at the grant date. The fair value of options granted during the three-month period ended December 31, 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 A summary of stock option activity as of December 31, 2022, and changes during the three-month period then ended is presented below. Weighted Average Remaining Weighted Contractual Aggregate Number of Average Term Intrinsic Shares Exercise Price (Years) Value (Dollars in thousands, except per share data) Outstanding at beginning of period 351,369 $ 20.57 Granted 66,000 22.49 Exercised — — Forfeited or expired — — Outstanding at end of period 417,369 $ 20.87 7.0 $ 867 Vested and expected to vest 417,369 $ 20.87 7.0 $ 867 Exercisable at end of period 223,830 $ 17.77 5.4 $ 866 There were no stock options exercised during the three-month periods ended December 31, 2022 and 2021. The Company recognized compensation expense related to stock options of $82,000 and $52,000 for the three-month periods ended December 31, 2022, respectively. At December 31, 2022, there was $1.2 million of unrecognized compensation expense related to nonvested stock options. The compensation expense is expected to be recognized over a weighted average period of 4.20 years. There was no cash received or tax benefit from the exercise of stock options during the three-month periods ended December 31, 2022 and 2021. Restricted Stock The vesting period of restricted stock granted under the plans is generally five years beginning one year after the date of grant of the awards. Compensation expense is measured based on the fair market value of the restricted stock at the grant date and is recognized ratably over the vesting period. Compensation expense related to restricted stock recognized for the three-month periods ended December 31, 2022 and 2021 was $103,000 and $75,000, respectively. A summary of the Company’s nonvested restricted shares activity as of December 31, 2022 and changes during the three-month period then ended is presented below. Weighted Number Average of Grant Date Shares Fair Value Nonvested at October 1, 2022 51,324 $ 26.07 Granted 22,000 $ 22.49 Vested (16,408) $ 25.68 Forfeited — $ — Nonvested at December 31, 2022 56,916 $ 24.80 There were 16,408 restricted shares vested during the three-month period ended December 31, 2022 with a total fair value of $369,000. There were 12,225 restricted shares that vested during the three-month period ended December 31, 2021 with a total fair value of $327,000. At December 31, 2022, there was $1.4 million of unrecognized compensation expense related to nonvested restricted shares. The compensation expense is expected to be recognized over a weighted average period of 4.14 years. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Dec. 31, 2022 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 10. Derivative Financial Instruments The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (i.e., rate lock commitment). The Company also enters into forward mortgage loan commitments to sell loans to various investors to protect itself against exposure to various factors and to reduce sensitivity to interest rate movements. Both the interest rate lock commitments and the related forward mortgage loan sales contracts are considered derivatives and are recorded on the accompanying consolidated balance sheets at fair value in accordance with FASB ASC 815, Derivatives and Hedging Certain financial instruments, including derivatives, may be eligible for offset in the balance sheet when the “right of setoff” exists or when the instruments are subject to an enforceable master netting agreement, which includes the right of the non-defaulting party or non-affected party to offset recognized amounts, including collateral posted with the counterparty, to determine a net receivable or net payable upon early termination of the agreement. Certain of the Company’s derivative instruments are subject to master netting agreements. However, the Company has not elected to offset such financial instruments in the consolidated balance sheets. The Company may be required to post margin collateral to derivative counterparties based on agreements with the dealers. At December 31, 2022 and September 30, 2022, the Company had cash collateral posted with certain derivative counterparties of $1.5 million and $2.4 million, respectively, against its derivative obligations. Cash collateral related to derivative contracts is recorded in interest-bearing deposits with banks or other assets in the consolidated balance sheets. The tables below provide information on the Company’s derivative financial instruments as of December 31, 2022 and September 30, 2022. Notional Asset Liability Amount Derivatives Derivatives (In thousands) December 31, 2022 December 31, 2022 December 31, 2022 Interest rate lock commitments $ 42,369 $ 377 $ 15 Forward mortgage loan sale contracts 26,500 79 95 $ 68,869 $ 456 $ 110 Notional Asset Liability Amount Derivatives Derivatives September 30, September 30, September 30, (In thousands) 2022 2022 2022 Interest rate lock commitments $ 48,952 $ 158 $ 396 Forward mortgage loan sale contracts 60,000 872 31 $ 108,952 $ 1,030 $ 427 Income (loss) related to derivative financial instruments included in mortgage banking income in the accompanying consolidated statements of income for the three- month periods ended December 31, 2022 and 2021 is as follows: Three Months Ended December 31, (In thousands) 2022 2021 Interest rate lock commitments $ 599 $ 173 Forward mortgage loan sale contracts (545) 695 $ 54 $ 868 |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Dec. 31, 2022 | |
Regulatory Capital | |
Regulatory Capital | 11. Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined). The final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (“Basel III rules”) became effective for the Bank on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule through 2019. Under the Basel III rules, the Bank must hold a conservation buffer above the adequately capitalized risk-based capital ratios disclosed in the table below. The capital conservation buffer was phased in from 0.0% for 2015 to 2.5% by 2019. The capital conservation buffer was 2.50% for 2022 and 2021. The Bank met all capital adequacy requirements to which it was subject as of December 31, 2022 and September 30, 2022. As of December 31, 2022, the most recent notification from the Federal Reserve Bank categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Company’s and Bank’s actual capital amounts and ratios are also presented in the table. The Company is not subject to the Federal Reserve Bank’s consolidated capital requirements because it has less than $3 billion in total consolidated assets. However, management has elected to disclose the Company’s capital amounts and ratios in addition to the Bank’s required disclosures in the table below. No amount was deducted from capital for interest-rate risk at either date. To Be Well Minimum Minimum Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes: Action Provisions: Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2022: Total capital (to risk-weighted assets): Consolidated $ 227,650 12.01 % $ 151,625 8.00 % N/A N/A Bank 215,966 11.41 151,418 8.00 $ 189,273 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 161,296 8.51 % $ 113,719 6.00 % N/A N/A Bank 199,886 10.56 113,564 6.00 $ 151,418 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 161,296 8.51 % $ 85,289 4.50 % N/A N/A Bank 199,886 10.56 85,173 4.50 $ 123,027 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 161,296 7.55 % $ 85,455 4.00 % N/A N/A Bank 199,886 9.35 85,505 4.00 $ 106,881 5.00 % As of September 30, 2022 (As Restated): Total capital (to risk-weighted assets): Consolidated $ 224,895 12.33 % $ 145,973 8.00 % N/A N/A Bank 208,280 11.44 145,713 8.00 $ 182,141 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 159,318 8.73 % $ 109,480 6.00 % N/A N/A Bank 192,920 10.59 109,285 6.00 $ 145,713 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 159,318 8.73 % $ 82,110 4.50 % N/A N/A Bank 192,920 10.59 81,963 4.50 $ 118,392 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 159,318 7.96 % $ 80,031 4.00 % N/A N/A Bank 192,920 9.58 80,555 4.00 $ 100,693 5.00 % |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2022 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 12. Recent Accounting Pronouncements The following are summaries of recently issued or adopted accounting pronouncements that impact the accounting and reporting practices of the Company: In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (Topic 326) In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. 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. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Dec. 31, 2022 | |
Segment Reporting | |
Segment Reporting | 13. Segment Reporting The Company’s operations include three primary segments: core banking, SBA lending, and mortgage banking. The core banking segment originates residential, commercial and consumer loans and attracts deposits from its customer base. Net interest income from loans and investments that are funded by deposits and borrowings is the primary revenue for the core banking segment. The SBA lending segment originates loans guaranteed by the SBA, subsequently selling the guaranteed portion to outside investors. Net gains on sales of loans, net servicing income 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, net servicing income, income from derivative financial instruments and net interest income are the primary sources of revenue for the mortgage banking segment. The core banking segment is comprised primarily by the Bank and First Savings Investments, Inc., while the SBA lending segment’s revenues are comprised primarily of net interest income and gains on the sales of SBA loans generated by Q2. The mortgage banking segment operates as a separate division of the Bank. The following segment financial information has been derived from the internal financial statements of the Company which are used by management to monitor and manage financial performance. The accounting policies of the three segments are the same as those of the Company. The amounts reflected in the “Other” column in the tables below represent combined balances of the Company and the Captive, and are the primary differences between the sum of the segment amounts and consolidated totals, along with amounts to eliminate transactions between segments. Core SBA Mortgage Consolidated Banking Lending Banking Totals (In thousands) Three Months Ended December 31, 2022: Net interest income $ 15,008 $ 995 $ 258 $ 16,261 Provision for loan losses 701 283 — 984 Net interest income after provision 14,307 712 258 15,277 Net gains on sales of loans, SBA — 775 — 775 Mortgage banking income (10) — 2,506 2,496 Noninterest income 1,928 754 2,506 5,188 Noninterest expense 9,797 1,924 5,790 17,511 Income (loss) before taxes 6,438 (458) (3,026) 2,954 Income tax expense (benefit) 996 (107) (756) 83 Segment profit (loss) 5,492 (351) (2,270) 2,871 Non-cash items: Depreciation and amortization 601 5 27 633 Segment assets at December 31, 2022 2,005,780 100,304 90,835 2,196,919 Core SBA Mortgage Consolidated Banking Lending Banking Totals (In thousands) Three Months Ended December 31, 2021: Net interest income $ 11,495 $ 1,875 $ 533 $ 13,903 Provision (credit) for loan losses (144) 670 — 526 Net interest income after provision 11,639 1,205 533 13,377 Net gains on sales of loans, SBA — 1,636 — 1,636 Mortgage banking income (4) — 12,748 12,744 Noninterest income 1,942 1,901 12,748 16,591 Noninterest expense 9,582 2,236 13,134 24,852 Income before taxes 4,099 870 147 5,116 Income tax expense 500 265 46 811 Segment profit 3,599 605 101 4,305 Non-cash items: Depreciation and amortization 550 8 48 606 Segment assets at December 31, 2021 1,421,680 157,481 185,428 1,764,589 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | 14. Revenue from Contracts with Customers Substantially all of the Company’s revenue from contracts with customers within the scope of FASB ASC 606 is included in the core banking segment and is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the three- month periods ended December 31, 2022 and 2021: Three Months Ended December 31, 2022 2021 (In thousands) Service charges on deposit accounts $ 558 $ 434 ATM and interchange fees 739 679 Investment advisory income 128 188 Other 25 24 Revenue from contracts with customers subject to ASC 606 1,450 1,325 Gain on sale of SBA loans 775 1,636 Mortgage banking income 2,496 12,744 Increase in cash value of life insurance 225 254 Real estate lease income 117 148 Other 125 484 Other noninterest income 3,738 15,266 Total noninterest income $ 5,188 $ 16,591 A description of the Company’s revenue streams accounted for under FASB ASC 606 follows: Service Charges on Deposit Accounts ATM and Interchange Fees Investment Advisory Income Other Income |
Mortgage Banking Income
Mortgage Banking Income | 3 Months Ended |
Dec. 31, 2022 | |
Mortgage Banking Income | |
Mortgage Banking Income | 15. Mortgage Banking Income The components of mortgage banking income for the three-month periods ended December 31, 2022 and 2021 were as follows: Three Months Ended December 31, 2022 2021 (In thousands) Origination and sale of mortgage loans (1) $ 732 $ 4,655 Mortgage brokerage income 43 331 Net change in fair value of loans held for sale and interest rate lock commitments 1,267 (222) Realized and unrealized gains (losses) from forward sales commitments (545) 695 Capitalized residential mortgage loan servicing rights 142 4,504 Net change in fair value of residential mortgage loan servicing rights (1,240) 675 Provisions for loan repurchases and indemnifications (328) (14) Net loan servicing income 2,425 2,120 Total mortgage banking income $ 2,496 $ 12,744 (1) Includes origination fees and realized gains and losses on the sale of mortgage loans in the secondary market. |
Loss Contingency
Loss Contingency | 3 Months Ended |
Dec. 31, 2022 | |
Loss Contingency | |
Loss Contingency | 16. Loss Contingency The Bank received notice of a class action lawsuit on March 23, 2021 regarding its policy and practice of assessing customer fees related to items presented on accounts with insufficient funds (NSF items). The Company has reached a verbal settlement agreement with the claimant, and the Company has accrued a loss contingency for this pending settlement at December 31, 2022, the amount of which had an immaterial effect on the condensed consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Investment Securities | |
Schedule of amortized cost of securities available for sale and held to maturity | Gross Gross Amortized Unrealized Unrealized Fair Cost Gain Losses Value (In thousands) December 31, 2022: Securities available for sale: U.S. Treasury bills and notes $ 31,327 $ — $ 3,419 $ 27,908 Agency mortgage-backed 30,139 3 2,981 27,161 Agency CMO 14,924 — 1,004 13,920 Privately-issued CMO 457 3 31 429 Privately-issued ABS 519 16 8 527 SBA certificates 12,094 — 306 11,788 Municipal bonds 263,754 917 17,241 247,430 Total securities available for sale $ 353,214 $ 939 $ 24,990 $ 329,163 Securities held to maturity: Agency mortgage-backed $ 42 $ — $ — $ 42 Municipal bonds 1,478 28 — 1,506 Total securities held to maturity $ 1,520 $ 28 $ — $ 1,548 Gross Gross Amortized Unrealized Unrealized Fair Cost Gain Losses Value (In thousands) September 30, 2022: Securities available for sale: U.S. Treasury bills and 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 |
Schedule of amortized cost and fair value of investment securities by contractual maturity | The amortized cost and fair value of investment securities as of December 31, 2022 by contractual maturity are shown below. CMO, ABS, SBA certificates, and mortgage-backed securities which do not have a single maturity date are shown separately. Available for Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value (In thousands) Due within one year $ 11,725 $ 11,694 $ 249 $ 252 Due after one year through five years 23,467 23,408 755 769 Due after five years through ten years 70,249 66,736 474 485 Due after ten years 189,640 173,500 — — CMO 15,381 14,349 — — ABS 519 527 — — SBA certificates 12,094 11,788 — — Mortgage-backed securities 30,139 27,161 42 42 $ 353,214 $ 329,163 $ 1,520 $ 1,548 |
Schedule of investment securities with gross unrealized losses | Information pertaining to investment securities with gross unrealized losses at December 31, 2022 and September 30, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, follows: Number of Gross Investment Fair Unrealized Positions Value Losses (Dollars in thousands) December 31, 2022: Securities available for sale: Continuous loss position less than twelve months: U.S. Treasury bills and notes 8 $ 27,668 $ 3,419 Agency mortgage-backed 12 23,650 2,236 Agency CMO 11 11,709 626 Privately-issued CMO 1 405 31 SBA certificates 2 10,749 285 Municipal bonds 201 159,011 15,620 Total less than twelve months 235 233,192 22,217 Continuous loss position more than twelve months: Agency mortgage-backed 1 3,056 745 Agency CMO 4 2,211 378 Privately-issued ABS 1 262 8 SBA certificates 2 1,039 21 Municipal bonds 9 6,830 1,621 Total more than twelve months 17 13,398 2,773 Total securities available for sale 252 $ 246,590 $ 24,990 September 30, 2022: Securities available for sale: Continuous loss position less than twelve months: U.S. Treasury bills and 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 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Loans and Allowance for Loan Losses | |
Schedule of loans | December 31, September 30, 2022 2022 (In thousands) Real estate mortgage: 1-4 family residential $ 413,015 $ 368,211 Commercial 178,770 169,861 Single tenant net lease 733,134 674,567 SBA (1) 52,917 59,379 Multifamily residential 32,489 32,411 Residential construction 21,224 18,261 Commercial construction 4,612 5,938 Land and land development 11,054 11,880 Commercial business 92,025 90,010 SBA commercial business (1)(2) 20,353 20,282 Consumer 38,367 38,052 Total loans 1,597,960 1,488,852 Deferred loan origination fees and costs, net (3) 1,060 1,052 Allowance for loan losses (16,080) (15,360) Loans, net $ 1,582,940 $ 1,474,544 (1) Includes discounts on SBA loans of $4.1 $4.3 (2) Includes $591,000 and $650,000 of loans originated under the SBA’s Paycheck Protection Program (“PPP”) at December 31, 2022 and September 30, 2022, respectively. (3) Includes $10,000 and $11,000 of net deferred loan fees related to PPP loans as of December 31, 2022 and September 30, 2022, respectively. |
Schedule of components of recorded investment in loans | The following table provides the components of the recorded investment in loans as of December 31, 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 $ 413,015 $ 2,035 $ 143 $ 415,193 Commercial real estate 178,770 572 (328) 179,014 Single tenant net lease 733,134 2,188 108 735,430 SBA commercial real estate 52,917 672 1,048 54,637 Multifamily 32,489 64 (39) 32,514 Residential construction 21,224 45 (89) 21,180 Commercial construction 4,612 12 (28) 4,596 Land and land development 11,054 24 (11) 11,067 Commercial business 92,025 374 30 92,429 SBA commercial business 20,353 212 246 20,811 Consumer 38,367 148 (20) 38,495 $ 1,597,960 $ 6,346 $ 1,060 $ 1,605,366 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 $ 2,967 $ 412,226 $ 415,193 Commercial real estate 881 178,133 179,014 Single tenant net lease — 735,430 735,430 SBA commercial real estate 7,445 47,192 54,637 Multifamily 346 32,168 32,514 Residential construction — 21,180 21,180 Commercial construction — 4,596 4,596 Land and land development — 11,067 11,067 Commercial business 904 91,525 92,429 SBA commercial business 1,249 19,562 20,811 Consumer 311 38,184 38,495 $ 14,103 $ 1,591,263 $ 1,605,366 The following table provides the components of the recorded investment in loans as of September 30, 2022: 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 $ 368,211 $ 1,701 $ 136 $ 370,048 Commercial real estate 169,861 533 (304) 170,090 Single tenant net lease 674,567 1,979 47 676,593 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 $ 1,488,852 $ 5,379 $ 1,052 $ 1,495,283 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 — 676,593 676,593 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 19,572 20,663 Consumer 238 37,914 38,152 $ 13,570 $ 1,481,713 $ 1,495,283 |
Schedule of allowance for loan losses | Individually Collectively Evaluated for Evaluated for Ending Impairment Impairment Balance (In thousands) December 31, 2022: Residential real estate $ — $ 3,100 $ 3,100 Commercial real estate — 1,751 1,751 Single tenant net lease — 3,804 3,804 SBA commercial real estate 83 2,315 2,398 Multifamily — 252 252 Residential construction — 367 367 Commercial construction — 83 83 Land and land development — 200 200 Commercial business 28 1,227 1,255 SBA commercial business 714 1,624 2,338 Consumer — 532 532 $ 825 $ 15,255 $ 16,080 September 30, 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 Beginning Balance Provisions (Credits) Charge-Offs Recoveries Ending Balance (In thousands) December 31, 2022: Residential real estate $ 2,716 $ 382 $ — $ 2 $ 3,100 Commercial real estate 1,590 161 — — 1,751 Single tenant net lease 3,838 (34) — — 3,804 SBA commercial real estate 2,578 (106) (74) — 2,398 Multifamily 251 1 — — 252 Residential construction 305 62 — — 367 Commercial construction 107 (24) — — 83 Land and land development 212 (12) — — 200 Commercial business 1,193 32 — 30 1,255 SBA commercial business 2,122 390 (190) 16 2,338 Consumer 448 132 (65) 17 532 $ 15,360 $ 984 $ (329) $ 65 $ 16,080 December 31, 2021: Residential real estate $ 1,438 $ (82) $ (23) $ 3 $ 1,336 Commercial real estate 2,806 (295) — — 2,511 Single tenant net lease 2,422 345 — — 2,767 SBA commercial real estate 3,475 267 (20) — 3,722 Multifamily 518 (77) — — 441 Residential construction 191 18 — — 209 Commercial construction 63 17 — — 80 Land and land development 235 (14) — — 221 Commercial business 1,284 (44) — — 1,240 SBA commercial business 1,346 401 — 22 1,769 Consumer 523 (10) (38) 9 484 $ 14,301 $ 526 $ (81) $ 34 $ 14,780 |
Schedule of impaired loans individually evaluated for impairment | At December 31, 2022 Three Months Ended December 31, 2022 2022 2021 2021 Unpaid Average Interest Average Interest Recorded Principal Related Recorded Income Recorded Income Investment Balance Allowance Investment Recognized Investment Recognized (In thousands) Loans with no related allowance recorded: Residential real estate $ 2,967 $ 3,257 $ — $ 2,891 $ 15 $ 3,444 $ 16 Commercial real estate 881 959 — 971 7 1,079 7 Single tenant net lease — — — — — — — SBA commercial real estate 6,881 8,115 — 7,033 — 8,102 — Multifamily 346 389 — 393 5 428 — Residential construction — — — — — — — Commercial construction — — — — — — — Land and land development — — — — — — — Commercial business 856 946 — 1,068 12 1,511 2 SBA commercial business 293 982 — 757 — 502 — Consumer 88 72 — 77 — 87 — $ 12,312 $ 14,720 $ — $ 13,190 $ 39 $ 15,153 $ 25 Loans with an allowance recorded: Residential real estate $ — $ — $ — $ — $ — $ 253 $ — Commercial real estate — — — — — — — Single tenant net lease — — — — — — — SBA commercial real estate 564 587 83 1,665 — 1,025 — Multifamily — — — — — — — Residential construction — — — — — — — Commercial construction — — — — — — — Land and land development — — — — — — — Commercial business 48 135 28 67 — — — SBA commercial business 956 1,214 714 1,267 — 219 — Consumer 223 223 — 184 — 138 — $ 1,791 $ 2,159 $ 825 $ 3,183 $ — $ 1,635 $ — Total: Residential real estate $ 2,967 $ 3,257 $ — $ 2,891 $ 15 $ 3,697 $ 16 Commercial real estate 881 959 — 971 7 1,079 7 Single tenant net lease — — — — — — — SBA commercial real estate 7,445 8,702 83 8,698 — 9,127 — Multifamily 346 389 — 393 5 428 — Residential construction — — — — — — — Commercial construction — — — — — — — Land and land development — — — — — — — Commercial business 904 1,081 28 1,135 12 1,511 2 SBA commercial business 1,249 2,196 714 2,024 — 721 — Consumer 311 295 — 261 — 225 — $ 14,103 $ 16,879 $ 825 $ 16,373 $ 39 $ 16,788 $ 25 The following table presents impaired loans individually evaluated for impairment as of September 30, 2022. Unpaid Recorded Principal Related Investment Balance Allowance (In thousands) Loans with no related allowance recorded: Residential real estate $ 2,248 $ 2,524 $ — Commercial real estate 907 982 — Single tenant net lease — — — SBA commercial real estate 5,337 5,952 — Multifamily 354 398 — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 1,007 1,189 — SBA commercial business 221 532 — Consumer 93 81 — $ 10,167 $ 11,658 $ — Loans with an allowance recorded: Residential real estate $ — $ — $ — Commercial real estate — — — Single tenant net lease — — — SBA commercial real estate 2,388 2,919 290 Multifamily — — — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business — — — SBA commercial business 870 1,349 674 Consumer 145 145 — $ 3,403 $ 4,413 $ 964 Total: Residential real estate $ 2,248 $ 2,524 $ — Commercial real estate 907 982 — Single tenant net lease — — — SBA commercial real estate 7,725 8,871 290 Multifamily 354 398 — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 1,007 1,189 — SBA commercial business 1,091 1,881 674 Consumer 238 226 — $ 13,570 $ 16,071 $ 964 |
Schedule of nonperforming loans | At December 31, 2022 At September 30, 2022 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 $ 1,946 $ — $ 1,946 $ 1,213 $ — $ 1,213 Commercial real estate 498 — 498 516 — 516 Single tenant net lease — — — — — — SBA commercial real estate 7,445 — 7,445 7,725 — 7,725 Multifamily — — — — — — Residential construction — — — — — — Commercial construction — — — — — — Land and land development — — — — — — Commercial business 74 — 74 73 — 73 SBA commercial business 1,249 — 1,249 1,091 — 1,091 Consumer 311 — 311 238 — 238 Total $ 11,523 $ — $ 11,523 $ 10,856 $ — $ 10,856 |
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 $ 1,508 $ 229 $ 715 $ 2,452 $ 412,741 $ 415,193 Commercial real estate 259 — 498 757 178,257 179,014 Single tenant net lease — — — — 735,430 735,430 SBA commercial real estate 262 6 3,172 3,440 51,197 54,637 Multifamily — — — — 32,514 32,514 Residential construction — — — — 21,180 21,180 Commercial construction — — — — 4,596 4,596 Land and land development — — — — 11,067 11,067 Commercial business 65 — 47 112 92,317 92,429 SBA commercial business — — 805 805 20,006 20,811 Consumer 3 — 54 57 38,438 38,495 Total $ 2,097 $ 235 $ 5,291 $ 7,623 $ 1,597,743 $ 1,605,366 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 — — — — 676,593 676,593 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 $ 1,489,277 $ 1,495,283 |
Schedule of investment in loans by risk category | Special December 31, 2022: Pass Mention Substandard Doubtful Loss Total (In thousands) Residential real estate $ 413,063 $ — $ 1,955 $ 175 $ — $ 415,193 Commercial real estate 178,306 — 708 — — 179,014 Single tenant net lease 735,430 — — — — 735,430 SBA commercial real estate 46,070 1,123 5,805 1,639 — 54,637 Multifamily 32,514 — — — — 32,514 Residential construction 21,180 — — — — 21,180 Commercial construction 4,596 — — — — 4,596 Land and land development 11,067 — — — — 11,067 Commercial business 92,217 125 87 — — 92,429 SBA commercial business 17,248 850 2,669 44 — 20,811 Consumer 38,406 — 89 — — 38,495 Total $ 1,590,097 $ 2,098 $ 11,313 $ 1,858 $ — $ 1,605,366 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 676,593 — — — — 676,593 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 $ 1,479,457 $ 1,677 $ 12,273 $ 1,876 $ — $ 1,495,283 |
Summary of information regarding TDRs that were restructured | Accruing Nonaccrual Total (In thousands) December 31, 2022: Residential real estate $ 1,021 $ — $ 1,021 Commercial real estate 383 420 803 SBA commercial real estate — 1,604 1,604 Multifamily 346 — 346 Commercial business 830 — 830 SBA commercial business — 262 262 Total $ 2,580 $ 2,286 $ 4,866 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 |
SBA loan servicing rights | |
Loans and Allowance for Loan Losses | |
Schedule of loan servicing rights | 2022 2021 (In thousands) Balance, beginning of period $ 3,790 $ 4,447 Servicing rights capitalized 198 346 Amortization (195) (288) Direct write-offs (141) (35) Change in valuation allowance (351) (41) Balance, end of period $ 3,301 $ 4,429 |
Mortgage servicing rights | |
Loans and Allowance for Loan Losses | |
Schedule of loan servicing rights | 2022 2021 (In thousands) Fair value, beginning of period $ 63,263 $ 49,579 Servicing rights capitalized 142 4,504 Changes in fair value related to: Loan repayments (1,023) (2,492) Change in valuation model inputs or assumptions (217) 3,167 Balance, end of period $ 62,165 $ 54,758 |
Schedule of key assumptions used to estimate the fair value | Range of Assumption Range of Assumption (Weighted Average) (Weighted Average) Assumption December 31, 2022 September 30, 2022 Discount rate 9.50% to 14.50% (9.52%) 9.50% to 14.50% (9.51%) Prepayment rate 3.75% to 85.80% (6.69%) 6.01% to 74.89% (6.63%) |
Nonresidential MSR | |
Loans and Allowance for Loan Losses | |
Schedule of loan servicing rights | 2022 2021 (In thousands) Balance, beginning of period $ 141 $ — Servicing rights capitalized — — Amortization (9) — Direct write-offs — — Change in valuation allowance — — Balance, end of period $ 132 $ — |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Deposits. | |
Schedule of deposits | December 31, September 30, 2022 2022 (In thousands) Noninterest-bearing demand deposits $ 315,390 $ 340,172 NOW accounts 345,597 343,296 Money market accounts 243,443 238,219 Savings accounts 170,732 171,779 Retail time deposits 136,515 129,864 Brokered & reciprocal time deposits 326,164 292,504 Total $ 1,537,841 $ 1,515,834 |
Supplemental Disclosure for N_2
Supplemental Disclosure for Net Income Per Share (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Supplemental Disclosure for Net Income Per Share | |
Schedule of net income per share information | Net income per share information is presented below for the three -month periods ended December 31, 2022 and 2021. All share and per share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. Three Months Ended December 31, (In thousands, except share and per share data) 2022 2021 Basic: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 2,871 $ 4,305 Shares: Weighted average common shares outstanding, basic 6,915,909 7,116,790 Net income per common share, basic $ 0.42 $ 0.60 Diluted: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 2,871 $ 4,305 Shares: Weighted average common shares outstanding, basic 6,915,909 7,116,790 Add: Dilutive effect of outstanding options 53,229 81,177 Add: Dilutive effect of restricted stock 2,917 9,243 Weighted average common shares outstanding, as adjusted 6,972,055 7,207,210 Net income per common share, diluted $ 0.41 $ 0.60 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Supplemental Disclosures of Cash Flow Information | |
Schedule of supplemental disclosure of cash flow information | Three Months Ended December 31, 2022 2021 (In thousands) Cash payments for: Interest $ 6,540 $ 1,866 Income taxes (net of refunds received) (117) (5) |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |
Schedule of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis | Carrying Value Level 1 Level 2 Level 3 Total (In thousands) December 31, 2022: Assets Measured – Recurring Basis: Securities available for sale: U.S. Treasury bills and notes $ — $ 27,908 $ — $ 27,908 Agency mortgage-backed — 27,161 — 27,161 Agency CMO — 13,920 — 13,920 Privately-issued CMO — 429 — 429 Privately-issued ABS — 527 — 527 SBA certificates — 11,788 — 11,788 Municipal — 247,430 — 247,430 Total securities available for sale $ — $ 329,163 $ — $ 329,163 Residential mortgage loans held for sale $ — $ 20,675 $ — $ 20,675 Derivative assets (included in other assets) $ — $ 79 $ 377 $ 456 Equity securities (included in other assets) $ 117 $ — $ — $ 117 Residential mortgage servicing rights $ — $ — $ 62,165 $ 62,165 Liabilities Measured – Recurring Basis: Derivative liabilities (included in other liabilities) $ — $ 95 $ 15 $ 110 Assets Measured – Nonrecurring Basis: Collateral dependent loans: Residential real estate $ — $ — $ — $ — Commercial real estate — — — — SBA commercial real estate — — 2,576 2,576 Multifamily — — — — Commercial business — — 20 20 SBA commercial business — — 389 389 Consumer — — — — Total impaired loans $ — $ — $ 2,985 $ 2,985 SBA loan servicing rights $ — $ — $ 3,301 $ 3,301 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) September 30, 2022: Assets Measured – Recurring Basis Securities available for sale: U.S. Treasury bills and 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 $ — $ 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 Collateral dependent 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 |
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 three -month periods ended December 31, 2022 and 2021: Three Months Ended December 31, (In thousands) 2022 2021 Beginning balance $ (238) $ 1,567 Unrealized gains recognized in earnings, net of settlements 600 173 Ending balance $ 362 $ 1,740 |
Schedule of significant unobservable inputs (Level 3) used in the valuation of derivative financial instruments measured at fair value on a recurring basis | The table below presents information about significant unobservable inputs (Level 3) used in the valuation of derivative financial instruments measured at fair value on a recurring basis as of December 31, 2022 and September 30, 2022. Range of Inputs Range of Inputs Significant (Weighted Average) (Weighted Average) Unobservable December 31, September 30, Financial Instrument Inputs 2022 2022 Interest rate lock commitments Pull-through rate 31% - 100% (68%) 50% - 100% (78%) Direct costs to close 0.00% - 5.10% (0.50%) 0.00% - 4.00% (0.70%) |
Schedule of aggregate fair value and the aggregate remaining principal balance for residential mortgage loans held for sale | The table below presents the difference between the aggregate fair value and the aggregate remaining principal balance for residential mortgage loans held for sale for which the fair value option had been elected as of December 31, 2022 and September 30, 2022. Aggregate Aggregate Principal Fair Value Balance December 31, December 31, (In thousands) 2022 2022 Difference Residential mortgage loans held for sale $ 20,675 $ 20,196 $ 479 Aggregate Aggregate Principal Fair Value Balance September 30, September 30, (In thousands) 2022 2022 Difference Residential mortgage loans held for sale $ 38,579 $ 38,517 $ 62 |
Schedule of gains and losses and interest included in earnings related to financial assets measured at fair value under the fair value option | The table below presents gains and losses and interest included in earnings related to financial assets measured at fair value under the fair value option for the three- month periods ended December 31, 2022 and 2021: Three Months Ended December 31, (In thousands) 2022 2021 Gains – included in mortgage banking income $ 668 $ 1,623 Interest income 428 994 $ 1,096 $ 2,617 |
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: Amount Level 1 Level 2 Level 3 (In thousands) December 31, 2022: Financial assets: Cash and due from banks $ 25,226 $ 25,226 $ — $ — Interest-bearing deposits with banks 13,052 13,052 — — Interest-bearing time deposits 1,854 — 1,854 — Securities available for sale 329,163 — 329,163 — Securities held to maturity 1,520 — 1,548 — Residential mortgage loans held for sale 20,675 — 20,675 — Single tenant net lease loans held for sale — — — — SBA loans held for sale 23,606 — — 25,603 Loans, net 1,582,940 — — 1,489,154 FRB and FHLB stock 21,564 N/A N/A N/A Accrued interest receivable 10,436 — 10,436 — Residential mortgage loan servicing rights 62,165 — — 62,165 Nonresidential mortgage loan servicing rights 132 — — 132 SBA loan servicing rights 3,301 — — 3,301 Derivative assets (included in other assets) 456 — 79 377 Equity securities (included in other assets) 117 117 — — Financial liabilities: Deposits 1,537,841 — — 1,533,129 Borrowings from FHLB 377,643 — 372,776 — Subordinated note 50,274 — 48,819 — Other borrowings 45,184 — 45,184 — Accrued interest payable 1,984 — 1,984 — Advance payments by borrowers for taxes and insurance 695 — 695 — Derivative liabilities (included in other liabilities) 110 — 95 15 Carrying Fair Value Measurements Using: Amount Level 1 Level 2 Level 3 (In thousands) 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 1,474,544 — — 1,402,222 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 SBA loan servicing rights 3,790 — — 3,789 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 — Other borrowings 37,989 — — 37,989 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 |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Stock Based Compensation Plans | |
Schedule of fair value of options granted | The fair value of options granted during the three-month period ended December 31, 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 |
Schedule of stock option activity | A summary of stock option activity as of December 31, 2022, and changes during the three-month period then ended is presented below. Weighted Average Remaining Weighted Contractual Aggregate Number of Average Term Intrinsic Shares Exercise Price (Years) Value (Dollars in thousands, except per share data) Outstanding at beginning of period 351,369 $ 20.57 Granted 66,000 22.49 Exercised — — Forfeited or expired — — Outstanding at end of period 417,369 $ 20.87 7.0 $ 867 Vested and expected to vest 417,369 $ 20.87 7.0 $ 867 Exercisable at end of period 223,830 $ 17.77 5.4 $ 866 |
Schedule of nonvested restricted shares activity | A summary of the Company’s nonvested restricted shares activity as of December 31, 2022 and changes during the three-month period then ended is presented below. Weighted Number Average of Grant Date Shares Fair Value Nonvested at October 1, 2022 51,324 $ 26.07 Granted 22,000 $ 22.49 Vested (16,408) $ 25.68 Forfeited — $ — Nonvested at December 31, 2022 56,916 $ 24.80 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Derivative Financial Instruments | |
Schedule of derivative financial instruments | The tables below provide information on the Company’s derivative financial instruments as of December 31, 2022 and September 30, 2022. Notional Asset Liability Amount Derivatives Derivatives (In thousands) December 31, 2022 December 31, 2022 December 31, 2022 Interest rate lock commitments $ 42,369 $ 377 $ 15 Forward mortgage loan sale contracts 26,500 79 95 $ 68,869 $ 456 $ 110 Notional Asset Liability Amount Derivatives Derivatives September 30, September 30, September 30, (In thousands) 2022 2022 2022 Interest rate lock commitments $ 48,952 $ 158 $ 396 Forward mortgage loan sale contracts 60,000 872 31 $ 108,952 $ 1,030 $ 427 |
Schedule of Income (loss) related to derivative financial instruments | Three Months Ended December 31, (In thousands) 2022 2021 Interest rate lock commitments $ 599 $ 173 Forward mortgage loan sale contracts (545) 695 $ 54 $ 868 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Regulatory Capital | |
Schedule of actual capital amounts and ratios | To Be Well Minimum Minimum Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes: Action Provisions: Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2022: Total capital (to risk-weighted assets): Consolidated $ 227,650 12.01 % $ 151,625 8.00 % N/A N/A Bank 215,966 11.41 151,418 8.00 $ 189,273 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 161,296 8.51 % $ 113,719 6.00 % N/A N/A Bank 199,886 10.56 113,564 6.00 $ 151,418 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 161,296 8.51 % $ 85,289 4.50 % N/A N/A Bank 199,886 10.56 85,173 4.50 $ 123,027 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 161,296 7.55 % $ 85,455 4.00 % N/A N/A Bank 199,886 9.35 85,505 4.00 $ 106,881 5.00 % As of September 30, 2022 (As Restated): Total capital (to risk-weighted assets): Consolidated $ 224,895 12.33 % $ 145,973 8.00 % N/A N/A Bank 208,280 11.44 145,713 8.00 $ 182,141 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 159,318 8.73 % $ 109,480 6.00 % N/A N/A Bank 192,920 10.59 109,285 6.00 $ 145,713 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 159,318 8.73 % $ 82,110 4.50 % N/A N/A Bank 192,920 10.59 81,963 4.50 $ 118,392 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 159,318 7.96 % $ 80,031 4.00 % N/A N/A Bank 192,920 9.58 80,555 4.00 $ 100,693 5.00 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Segment Reporting | |
Schedule of sum of the segment amounts and consolidated totals | Core SBA Mortgage Consolidated Banking Lending Banking Totals (In thousands) Three Months Ended December 31, 2022: Net interest income $ 15,008 $ 995 $ 258 $ 16,261 Provision for loan losses 701 283 — 984 Net interest income after provision 14,307 712 258 15,277 Net gains on sales of loans, SBA — 775 — 775 Mortgage banking income (10) — 2,506 2,496 Noninterest income 1,928 754 2,506 5,188 Noninterest expense 9,797 1,924 5,790 17,511 Income (loss) before taxes 6,438 (458) (3,026) 2,954 Income tax expense (benefit) 996 (107) (756) 83 Segment profit (loss) 5,492 (351) (2,270) 2,871 Non-cash items: Depreciation and amortization 601 5 27 633 Segment assets at December 31, 2022 2,005,780 100,304 90,835 2,196,919 Core SBA Mortgage Consolidated Banking Lending Banking Totals (In thousands) Three Months Ended December 31, 2021: Net interest income $ 11,495 $ 1,875 $ 533 $ 13,903 Provision (credit) for loan losses (144) 670 — 526 Net interest income after provision 11,639 1,205 533 13,377 Net gains on sales of loans, SBA — 1,636 — 1,636 Mortgage banking income (4) — 12,748 12,744 Noninterest income 1,942 1,901 12,748 16,591 Noninterest expense 9,582 2,236 13,134 24,852 Income before taxes 4,099 870 147 5,116 Income tax expense 500 265 46 811 Segment profit 3,599 605 101 4,305 Non-cash items: Depreciation and amortization 550 8 48 606 Segment assets at December 31, 2021 1,421,680 157,481 185,428 1,764,589 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contracts with Customers | |
Schedule of sources of noninterest income | Three Months Ended December 31, 2022 2021 (In thousands) Service charges on deposit accounts $ 558 $ 434 ATM and interchange fees 739 679 Investment advisory income 128 188 Other 25 24 Revenue from contracts with customers subject to ASC 606 1,450 1,325 Gain on sale of SBA loans 775 1,636 Mortgage banking income 2,496 12,744 Increase in cash value of life insurance 225 254 Real estate lease income 117 148 Other 125 484 Other noninterest income 3,738 15,266 Total noninterest income $ 5,188 $ 16,591 |
Mortgage Banking Income (Tables
Mortgage Banking Income (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Mortgage Banking Income | |
Schedule of components of mortgage banking income | Three Months Ended December 31, 2022 2021 (In thousands) Origination and sale of mortgage loans (1) $ 732 $ 4,655 Mortgage brokerage income 43 331 Net change in fair value of loans held for sale and interest rate lock commitments 1,267 (222) Realized and unrealized gains (losses) from forward sales commitments (545) 695 Capitalized residential mortgage loan servicing rights 142 4,504 Net change in fair value of residential mortgage loan servicing rights (1,240) 675 Provisions for loan repurchases and indemnifications (328) (14) Net loan servicing income 2,425 2,120 Total mortgage banking income $ 2,496 $ 12,744 (1) Includes origination fees and realized gains and losses on the sale of mortgage loans in the secondary market. |
Presentation of Interim Infor_2
Presentation of Interim Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2022 | |
Presentation of Interim Information | ||
Allowance for loan losses | $ 16,080,000 | $ 15,360,000 |
Allowance for loan losses, qualitative factor adjustments | 14,100,000 | $ 13,400,000 |
Minimum estimated value of property | $ 250,000 | |
Minimum [Member] | ||
Presentation of Interim Information | ||
Lookback period | 24 months | |
Maximum [Member] | ||
Presentation of Interim Information | ||
Lookback period | 48 months |
Investment Securities - Amortiz
Investment Securities - Amortized cost of securities available for sale and held to maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Securities available for sale: | ||
Amortized Cost | $ 353,214 | $ 350,794 |
Gross Unrealized Gain | 939 | 191 |
Gross Unrealized Losses | 24,990 | 34,468 |
Securities available for sale | 329,163 | 316,517 |
Securities held to maturity: | ||
Amortized Cost | 1,520 | 1,558 |
Gross Unrealized Gain | 28 | 35 |
Fair Value | 1,548 | 1,593 |
U.S. Treasury bills and notes | ||
Securities available for sale: | ||
Amortized Cost | 31,327 | 30,809 |
Gross Unrealized Losses | 3,419 | 3,514 |
Securities available for sale | 27,908 | 27,295 |
Agency mortgage-backed | ||
Securities available for sale: | ||
Amortized Cost | 30,139 | 30,786 |
Gross Unrealized Gain | 3 | 3 |
Gross Unrealized Losses | 2,981 | 3,289 |
Securities available for sale | 27,161 | 27,500 |
Securities held to maturity: | ||
Amortized Cost | 42 | 45 |
Fair Value | 42 | 45 |
Agency CMO | ||
Securities available for sale: | ||
Amortized Cost | 14,924 | 15,562 |
Gross Unrealized Losses | 1,004 | 741 |
Securities available for sale | 13,920 | 14,821 |
Privately-issued CMO | ||
Securities available for sale: | ||
Amortized Cost | 457 | 495 |
Gross Unrealized Gain | 3 | 4 |
Gross Unrealized Losses | 31 | 29 |
Securities available for sale | 429 | 470 |
Privately-issued ABS | ||
Securities available for sale: | ||
Amortized Cost | 519 | 561 |
Gross Unrealized Gain | 16 | 16 |
Gross Unrealized Losses | 8 | 8 |
Securities available for sale | 527 | 569 |
SBA certificates | ||
Securities available for sale: | ||
Amortized Cost | 12,094 | 12,255 |
Gross Unrealized Gain | 1 | |
Gross Unrealized Losses | 306 | 244 |
Securities available for sale | 11,788 | 12,012 |
Municipal bonds | ||
Securities available for sale: | ||
Amortized Cost | 263,754 | 260,326 |
Gross Unrealized Gain | 917 | 167 |
Gross Unrealized Losses | 17,241 | 26,643 |
Securities available for sale | 247,430 | 233,850 |
Securities held to maturity: | ||
Amortized Cost | 1,478 | 1,513 |
Gross Unrealized Gain | 28 | 35 |
Fair Value | $ 1,506 | $ 1,548 |
Investment Securities - Amort_2
Investment Securities - Amortized cost and fair value of investment securities by contractual maturity - Securities available for sale (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Available for Sale - Amortized Cost | ||
Amortized Cost | $ 353,214 | $ 350,794 |
Available for Sale - Fair Value | ||
Fair Value | 329,163 | 316,517 |
Municipal bonds | ||
Available for Sale - Amortized Cost | ||
Due within one year | 11,725 | |
Due after one year through five years | 23,467 | |
Due after five years through ten years | 70,249 | |
Due after ten years | 189,640 | |
Amortized Cost | 263,754 | 260,326 |
Available for Sale - Fair Value | ||
Due within one year | 11,694 | |
Due after one year through five years | 23,408 | |
Due after five years through ten years | 66,736 | |
Due after ten years | 173,500 | |
Fair Value | 247,430 | 233,850 |
CMO | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 15,381 | |
Available for Sale - Fair Value | ||
Without single maturity date | 14,349 | |
ABS | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 519 | |
Available for Sale - Fair Value | ||
Without single maturity date | 527 | |
SBA certificates | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 12,094 | |
Amortized Cost | 12,094 | 12,255 |
Available for Sale - Fair Value | ||
Without single maturity date | 11,788 | |
Fair Value | 11,788 | $ 12,012 |
Mortgage-backed securities | ||
Available for Sale - Amortized Cost | ||
Without single maturity date | 30,139 | |
Available for Sale - Fair Value | ||
Without single maturity date | $ 27,161 |
Investment Securities - Amort_3
Investment Securities - Amortized cost and fair value of investment securities by contractual maturity - Held to maturity securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Held to Maturity - Amortized Cost | ||
Amortized Cost | $ 1,520 | |
Held to Maturity - Fair Value | ||
Fair Value | 1,548 | $ 1,593 |
Municipal bonds | ||
Held to Maturity - Amortized Cost | ||
Due within one year | 249 | |
Due after one year through five years | 755 | |
Due after five years through ten years | 474 | |
Held to Maturity - Fair Value | ||
Due within one year | 252 | |
Due after one year through five years | 769 | |
Due after five years through ten years | 485 | |
Fair Value | 1,506 | $ 1,548 |
Mortgage-backed securities | ||
Held to Maturity - Amortized Cost | ||
Without single maturity date | 42 | |
Held to Maturity - Fair Value | ||
Without single maturity date | $ 42 |
Investment Securities - Investm
Investment Securities - Investment securities with gross unrealized losses (Details) $ in Thousands | Dec. 31, 2022 USD ($) position | Sep. 30, 2022 USD ($) position |
Fair Value | ||
Continuous loss position less than twelve months | $ 233,192 | $ 265,379 |
Continuous loss position more than twelve months | 13,398 | 11,135 |
Total securities available for sale | $ 246,590 | $ 276,514 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 235 | 295 |
Continuous loss position more than twelve months | position | 17 | 14 |
Total securities available for sale | position | 252 | 309 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 22,217 | $ 31,981 |
Continuous loss position more than twelve months | 2,773 | 2,487 |
Total securities available for sale | 24,990 | 34,468 |
U.S. Treasury bills | ||
Fair Value | ||
Continuous loss position less than twelve months | $ 27,668 | $ 27,295 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 8 | 7 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 3,419 | $ 3,514 |
Agency mortgage-backed | ||
Fair Value | ||
Continuous loss position less than twelve months | 23,650 | 24,987 |
Continuous loss position more than twelve months | $ 3,056 | $ 2,169 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 12 | 14 |
Continuous loss position more than twelve months | position | 1 | 1 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 2,236 | $ 2,749 |
Continuous loss position more than twelve months | 745 | 540 |
Agency CMO | ||
Fair Value | ||
Continuous loss position less than twelve months | 11,709 | 8,896 |
Continuous loss position more than twelve months | $ 2,211 | $ 1,199 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 11 | 12 |
Continuous loss position more than twelve months | position | 4 | 2 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 626 | $ 551 |
Continuous loss position more than twelve months | 378 | 190 |
Privately-issued CMO | ||
Fair Value | ||
Continuous loss position less than twelve months | 405 | 424 |
Continuous loss position more than twelve months | $ 262 | $ 19 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 1 | 2 |
Continuous loss position more than twelve months | position | 1 | 1 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 31 | $ 20 |
Continuous loss position more than twelve months | $ 8 | 9 |
Privately-issued ABS | ||
Fair Value | ||
Continuous loss position more than twelve months | $ 283 | |
Number of Investment Positions | ||
Continuous loss position more than twelve months | position | 1 | 1 |
Gross Unrealized Losses | ||
Continuous loss position more than twelve months | $ 8 | |
SBA certificates | ||
Fair Value | ||
Continuous loss position less than twelve months | $ 10,749 | 10,775 |
Continuous loss position more than twelve months | $ 1,039 | $ 1,202 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 2 | 1 |
Continuous loss position more than twelve months | position | 2 | 2 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 285 | $ 225 |
Continuous loss position more than twelve months | 21 | 19 |
Municipal bonds | ||
Fair Value | ||
Continuous loss position less than twelve months | 159,011 | 193,002 |
Continuous loss position more than twelve months | $ 6,830 | $ 6,263 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 201 | 259 |
Continuous loss position more than twelve months | position | 9 | 7 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 15,620 | $ 24,922 |
Continuous loss position more than twelve months | $ 1,621 | $ 1,721 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | |
Dec. 31, 2022 USD ($) position | Sep. 30, 2022 USD ($) position | |
Investment Securities | ||
Continuous loss position more than twelve months | position | 17 | 14 |
Available for sale debt securities with total fair value, pledged to secure FHLB borrowings | $ 57,600,000 | $ 58,600,000 |
Debt Securities | ||
Investment Securities | ||
Available for sale debt securities in loss position, depreciation percentage | 90% | |
Debt Securities | Downgraded Due To Potential Credit Losses | ||
Investment Securities | ||
Carrying value of downgraded due to potential credit losses | $ 345,000 | |
Debt Securities | Downgraded Privately Issued Cmos | ||
Investment Securities | ||
Fair market value of downgraded privately issued collateralized mortgage obligations | $ 341,000 | |
Two privately issued collateralized mortgage obligations | ||
Investment Securities | ||
Available for sale debt securities in loss position, depreciation percentage | 5.52% | |
Privately-issued CMO | ||
Investment Securities | ||
Continuous loss position more than twelve months | position | 1 | 1 |
Investments, Fair value disclosure | $ 667,000 | |
Total unrealized loss | 39,000 | |
Other-than-temporary impairment losses | $ 28,000 | |
Privately-issued CMO | Two privately issued collateralized mortgage obligations | ||
Investment Securities | ||
Continuous loss position more than twelve months | position | 5 | |
Privately-issued ABS | ||
Investment Securities | ||
Continuous loss position more than twelve months | position | 1 | 1 |
Agency mortgage-backed | ||
Investment Securities | ||
Continuous loss position more than twelve months | position | 1 | 1 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Loans (Details) - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | $ 1,060,000 | $ 1,052,000 |
Discounts on SBA loans | (4,118,000) | (4,287,000) |
Allowance for loan losses | (16,080,000) | (15,360,000) |
Loans, net | 1,582,940,000 | 1,474,544,000 |
Commercial | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | (328,000) | (304,000) |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | 108,000 | 47,000 |
Multifamily residential | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | (39,000) | (40,000) |
Residential construction | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | (89,000) | (89,000) |
Commercial construction | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | (28,000) | (25,000) |
Land and land development | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | (11,000) | (26,000) |
Commercial business | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | 30,000 | 48,000 |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | 246,000 | 218,000 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Deferred loan origination fees and costs, net | (20,000) | (21,000) |
Paycheck protection program | ||
Loans and Allowance for Loan Losses | ||
Total loans | 591,000 | 650,000 |
Deferred loan origination fees and costs, net | 10,000 | 11,000 |
Real estate mortgage | ||
Loans and Allowance for Loan Losses | ||
Total loans | 1,597,960,000 | 1,488,852,000 |
Real estate mortgage | 1-4 family residential | ||
Loans and Allowance for Loan Losses | ||
Total loans | 413,015,000 | 368,211,000 |
Real estate mortgage | Commercial | ||
Loans and Allowance for Loan Losses | ||
Total loans | 178,770,000 | 169,861,000 |
Real estate mortgage | Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Total loans | 733,134,000 | 674,567,000 |
Real estate mortgage | SBA | ||
Loans and Allowance for Loan Losses | ||
Total loans | 52,917,000 | 59,379,000 |
Real estate mortgage | Multifamily residential | ||
Loans and Allowance for Loan Losses | ||
Total loans | 32,489,000 | 32,411,000 |
Real estate mortgage | Residential construction | ||
Loans and Allowance for Loan Losses | ||
Total loans | 21,224,000 | 18,261,000 |
Real estate mortgage | Commercial construction | ||
Loans and Allowance for Loan Losses | ||
Total loans | 4,612,000 | 5,938,000 |
Real estate mortgage | Land and land development | ||
Loans and Allowance for Loan Losses | ||
Total loans | 11,054,000 | 11,880,000 |
Real estate mortgage | Commercial business | ||
Loans and Allowance for Loan Losses | ||
Total loans | 92,025,000 | 90,010,000 |
Real estate mortgage | SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Total loans | 20,353,000 | 20,282,000 |
Real estate mortgage | Consumer | ||
Loans and Allowance for Loan Losses | ||
Total loans | $ 38,367,000 | $ 38,052,000 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Components of recorded investment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Recorded Investment in Loans: | ||
Principal Loan Balance | $ 1,597,960 | $ 1,488,852 |
Accrued interest receivable | 6,346 | 5,379 |
Net Deferred Loan Origination Fees and Costs | 1,060 | 1,052 |
Recorded Investment in Loans | 1,605,366 | 1,495,283 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually Evaluated for Impairment | 14,103 | 13,570 |
Collectively Evaluated for Impairment | 1,591,263 | 1,481,713 |
Recorded Investment in Loans | 1,605,366 | 1,495,283 |
Residential real estate | ||
Recorded Investment in Loans: | ||
Principal Loan Balance | 413,015 | 368,211 |
Accrued interest receivable | 2,035 | 1,701 |
Net Deferred Loan Origination Fees and Costs | 143 | 136 |
Recorded Investment in Loans | 415,193 | 370,048 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually Evaluated for Impairment | 2,967 | 2,248 |
Collectively Evaluated for Impairment | 412,226 | 367,800 |
Recorded Investment in Loans | 415,193 | 370,048 |
Commercial real estate | ||
Recorded Investment in Loans: | ||
Principal Loan Balance | 178,770 | 169,861 |
Accrued interest receivable | 572 | 533 |
Net Deferred Loan Origination Fees and Costs | (328) | (304) |
Recorded Investment in Loans | 179,014 | 170,090 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually Evaluated for Impairment | 881 | 907 |
Collectively Evaluated for Impairment | 178,133 | 169,183 |
Recorded Investment in Loans | 179,014 | 170,090 |
Single tenant net lease | ||
Recorded Investment in Loans: | ||
Principal Loan Balance | 733,134 | 674,567 |
Accrued interest receivable | 2,188 | 1,979 |
Net Deferred Loan Origination Fees and Costs | 108 | 47 |
Recorded Investment in Loans | 735,430 | 676,593 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively Evaluated for Impairment | 735,430 | 676,593 |
Recorded Investment in Loans | 735,430 | 676,593 |
SBA commercial real estate | ||
Recorded Investment in Loans: | ||
Principal Loan Balance | 52,917 | 59,379 |
Accrued interest receivable | 672 | 486 |
Net Deferred Loan Origination Fees and Costs | 1,048 | 1,108 |
Recorded Investment in Loans | 54,637 | 60,973 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually Evaluated for Impairment | 7,445 | 7,725 |
Collectively Evaluated for Impairment | 47,192 | 53,248 |
Recorded Investment in Loans | 54,637 | 60,973 |
Multifamily | ||
Recorded Investment in Loans: | ||
Principal Loan Balance | 32,489 | 32,411 |
Accrued interest receivable | 64 | 62 |
Net Deferred Loan Origination Fees and Costs | (39) | (40) |
Recorded Investment in Loans | 32,514 | 32,433 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually Evaluated for Impairment | 346 | 354 |
Collectively Evaluated for Impairment | 32,168 | 32,079 |
Recorded Investment in Loans | 32,514 | 32,433 |
Residential construction | ||
Recorded Investment in Loans: | ||
Principal Loan Balance | 21,224 | 18,261 |
Accrued interest receivable | 45 | 27 |
Net Deferred Loan Origination Fees and Costs | (89) | (89) |
Recorded Investment in Loans | 21,180 | 18,199 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively Evaluated for Impairment | 21,180 | 18,199 |
Recorded Investment in Loans | 21,180 | 18,199 |
Commercial construction | ||
Recorded Investment in Loans: | ||
Principal Loan Balance | 4,612 | 5,938 |
Accrued interest receivable | 12 | 11 |
Net Deferred Loan Origination Fees and Costs | (28) | (25) |
Recorded Investment in Loans | 4,596 | 5,924 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively Evaluated for Impairment | 4,596 | 5,924 |
Recorded Investment in Loans | 4,596 | 5,924 |
Land and land development | ||
Recorded Investment in Loans: | ||
Principal Loan Balance | 11,054 | 11,880 |
Accrued interest receivable | 24 | 18 |
Net Deferred Loan Origination Fees and Costs | (11) | (26) |
Recorded Investment in Loans | 11,067 | 11,872 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Collectively Evaluated for Impairment | 11,067 | 11,872 |
Recorded Investment in Loans | 11,067 | 11,872 |
Commercial business | ||
Recorded Investment in Loans: | ||
Principal Loan Balance | 92,025 | 90,010 |
Accrued interest receivable | 374 | 278 |
Net Deferred Loan Origination Fees and Costs | 30 | 48 |
Recorded Investment in Loans | 92,429 | 90,336 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually Evaluated for Impairment | 904 | 1,007 |
Collectively Evaluated for Impairment | 91,525 | 89,329 |
Recorded Investment in Loans | 92,429 | 90,336 |
SBA commercial business | ||
Recorded Investment in Loans: | ||
Principal Loan Balance | 20,353 | 20,282 |
Accrued interest receivable | 212 | 163 |
Net Deferred Loan Origination Fees and Costs | 246 | 218 |
Recorded Investment in Loans | 20,811 | 20,663 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually Evaluated for Impairment | 1,249 | 1,091 |
Collectively Evaluated for Impairment | 19,562 | 19,572 |
Recorded Investment in Loans | 20,811 | 20,663 |
Consumer | ||
Recorded Investment in Loans: | ||
Principal Loan Balance | 38,367 | 38,052 |
Accrued interest receivable | 148 | 121 |
Net Deferred Loan Origination Fees and Costs | (20) | (21) |
Recorded Investment in Loans | 38,495 | 38,152 |
Recorded Investment in Loans as Evaluated for Impairment: | ||
Individually Evaluated for Impairment | 311 | 238 |
Collectively Evaluated for Impairment | 38,184 | 37,914 |
Recorded Investment in Loans | $ 38,495 | $ 38,152 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Allowance for loan losses based on impairment method: | |||
Individually Evaluated for Impairment | $ 825 | $ 964 | |
Collectively Evaluated for Impairment | 15,255 | 14,396 | |
Ending Balance | 16,080 | $ 14,780 | |
Allowance for loan losses by portfolio segment : | |||
Beginning Balance | 15,360 | 14,301 | |
Provisions (Credits) | 984 | 526 | |
Charge-Offs | (329) | (81) | |
Recoveries | 65 | 34 | |
Ending Balance | 16,080 | 14,780 | |
Residential real estate | |||
Allowance for loan losses based on impairment method: | |||
Collectively Evaluated for Impairment | 3,100 | 2,716 | |
Ending Balance | 3,100 | 1,336 | |
Allowance for loan losses by portfolio segment : | |||
Beginning Balance | 2,716 | 1,438 | |
Provisions (Credits) | 382 | (82) | |
Charge-Offs | (23) | ||
Recoveries | 2 | 3 | |
Ending Balance | 3,100 | 1,336 | |
Commercial real estate | |||
Allowance for loan losses based on impairment method: | |||
Collectively Evaluated for Impairment | 1,751 | 1,590 | |
Ending Balance | 1,751 | 2,511 | |
Allowance for loan losses by portfolio segment : | |||
Beginning Balance | 1,590 | 2,806 | |
Provisions (Credits) | 161 | (295) | |
Ending Balance | 1,751 | 2,511 | |
Single tenant net lease | |||
Allowance for loan losses based on impairment method: | |||
Collectively Evaluated for Impairment | 3,804 | 3,838 | |
Ending Balance | 3,804 | 2,767 | |
Allowance for loan losses by portfolio segment : | |||
Beginning Balance | 3,838 | 2,422 | |
Provisions (Credits) | (34) | 345 | |
Ending Balance | 3,804 | 2,767 | |
SBA commercial real estate | |||
Allowance for loan losses based on impairment method: | |||
Individually Evaluated for Impairment | 83 | 290 | |
Collectively Evaluated for Impairment | 2,315 | 2,288 | |
Ending Balance | 2,398 | 3,722 | |
Allowance for loan losses by portfolio segment : | |||
Beginning Balance | 2,578 | 3,475 | |
Provisions (Credits) | (106) | 267 | |
Charge-Offs | (74) | (20) | |
Ending Balance | 2,398 | 3,722 | |
Multifamily | |||
Allowance for loan losses based on impairment method: | |||
Collectively Evaluated for Impairment | 252 | 251 | |
Ending Balance | 252 | 441 | |
Allowance for loan losses by portfolio segment : | |||
Beginning Balance | 251 | 518 | |
Provisions (Credits) | 1 | (77) | |
Ending Balance | 252 | 441 | |
Residential construction | |||
Allowance for loan losses based on impairment method: | |||
Collectively Evaluated for Impairment | 367 | 305 | |
Ending Balance | 367 | 209 | |
Allowance for loan losses by portfolio segment : | |||
Beginning Balance | 305 | 191 | |
Provisions (Credits) | 62 | 18 | |
Ending Balance | 367 | 209 | |
Commercial construction | |||
Allowance for loan losses based on impairment method: | |||
Collectively Evaluated for Impairment | 83 | 107 | |
Ending Balance | 83 | 80 | |
Allowance for loan losses by portfolio segment : | |||
Beginning Balance | 107 | 63 | |
Provisions (Credits) | (24) | 17 | |
Ending Balance | 83 | 80 | |
Land and land development | |||
Allowance for loan losses based on impairment method: | |||
Collectively Evaluated for Impairment | 200 | 212 | |
Ending Balance | 200 | 221 | |
Allowance for loan losses by portfolio segment : | |||
Beginning Balance | 212 | 235 | |
Provisions (Credits) | (12) | (14) | |
Ending Balance | 200 | 221 | |
Commercial business | |||
Allowance for loan losses based on impairment method: | |||
Individually Evaluated for Impairment | 28 | ||
Collectively Evaluated for Impairment | 1,227 | 1,193 | |
Ending Balance | 1,255 | 1,240 | |
Allowance for loan losses by portfolio segment : | |||
Beginning Balance | 1,193 | 1,284 | |
Provisions (Credits) | 32 | (44) | |
Recoveries | 30 | ||
Ending Balance | 1,255 | 1,240 | |
SBA commercial business | |||
Allowance for loan losses based on impairment method: | |||
Individually Evaluated for Impairment | 714 | 674 | |
Collectively Evaluated for Impairment | 1,624 | 1,448 | |
Ending Balance | 2,338 | 1,769 | |
Allowance for loan losses by portfolio segment : | |||
Beginning Balance | 2,122 | 1,346 | |
Provisions (Credits) | 390 | 401 | |
Charge-Offs | (190) | ||
Recoveries | 16 | 22 | |
Ending Balance | 2,338 | 1,769 | |
Consumer | |||
Allowance for loan losses based on impairment method: | |||
Collectively Evaluated for Impairment | 532 | $ 448 | |
Ending Balance | 532 | 484 | |
Allowance for loan losses by portfolio segment : | |||
Beginning Balance | 448 | 523 | |
Provisions (Credits) | 132 | (10) | |
Charge-Offs | (65) | (38) | |
Recoveries | 17 | 9 | |
Ending Balance | $ 532 | $ 484 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | $ 12,312 | $ 10,167 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 14,720 | 11,658 | |
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 13,190 | $ 15,153 | |
Loans with no related allowance recorded, Interest Income Recognized | 39 | 25 | |
Loans with an allowance recorded, Recorded Investment | 1,791 | 3,403 | |
Loans with an allowance recorded, Unpaid Principal Balance | 2,159 | 4,413 | |
Loans with an allowance recorded, Related Allowance | 825 | 964 | |
Loans with an allowance recorded, Average Recorded Investment | 3,183 | 1,635 | |
Total, Recorded Investment | 14,103 | 13,570 | |
Total, Unpaid Principal Balance | 16,879 | 16,071 | |
Total, Related Allowance | 825 | 964 | |
Total, Average Recorded Investment | 16,373 | 16,788 | |
Total, Interest Income Recognized | 39 | 25 | |
Residential real estate | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 2,967 | 2,248 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 3,257 | 2,524 | |
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 2,891 | 3,444 | |
Loans with no related allowance recorded, Interest Income Recognized | 15 | 16 | |
Loans with an allowance recorded, Recorded Investment | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | ||
Loans with an allowance recorded, Related Allowance | 0 | ||
Loans with an allowance recorded, Average Recorded Investment | 253 | ||
Total, Recorded Investment | 2,967 | 2,248 | |
Total, Unpaid Principal Balance | 3,257 | 2,524 | |
Total, Related Allowance | 0 | ||
Total, Average Recorded Investment | 2,891 | 3,697 | |
Total, Interest Income Recognized | 15 | 16 | |
Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 881 | 907 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 959 | 982 | |
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 971 | 1,079 | |
Loans with no related allowance recorded, Interest Income Recognized | 7 | 7 | |
Loans with an allowance recorded, Recorded Investment | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | ||
Loans with an allowance recorded, Related Allowance | 0 | ||
Total, Recorded Investment | 881 | 907 | |
Total, Unpaid Principal Balance | 959 | 982 | |
Total, Related Allowance | 0 | ||
Total, Average Recorded Investment | 971 | 1,079 | |
Total, Interest Income Recognized | 7 | 7 | |
Single tenant net lease | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 0 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 0 | ||
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with an allowance recorded, Recorded Investment | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | ||
Loans with an allowance recorded, Related Allowance | 0 | ||
Total, Recorded Investment | 0 | ||
Total, Unpaid Principal Balance | 0 | ||
Total, Related Allowance | 0 | ||
SBA commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 6,881 | 5,337 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 8,115 | 5,952 | |
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 7,033 | 8,102 | |
Loans with an allowance recorded, Recorded Investment | 564 | 2,388 | |
Loans with an allowance recorded, Unpaid Principal Balance | 587 | 2,919 | |
Loans with an allowance recorded, Related Allowance | 83 | 290 | |
Loans with an allowance recorded, Average Recorded Investment | 1,665 | 1,025 | |
Total, Recorded Investment | 7,445 | 7,725 | |
Total, Unpaid Principal Balance | 8,702 | 8,871 | |
Total, Related Allowance | 83 | 290 | |
Total, Average Recorded Investment | 8,698 | 9,127 | |
Multifamily | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 346 | 354 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 389 | 398 | |
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 393 | 428 | |
Loans with no related allowance recorded, Interest Income Recognized | 5 | ||
Loans with an allowance recorded, Recorded Investment | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | ||
Loans with an allowance recorded, Related Allowance | 0 | ||
Total, Recorded Investment | 346 | 354 | |
Total, Unpaid Principal Balance | 389 | 398 | |
Total, Related Allowance | 0 | ||
Total, Average Recorded Investment | 393 | 428 | |
Total, Interest Income Recognized | 5 | ||
Residential construction | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 0 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 0 | ||
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with an allowance recorded, Recorded Investment | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | ||
Loans with an allowance recorded, Related Allowance | 0 | ||
Total, Recorded Investment | 0 | ||
Total, Unpaid Principal Balance | 0 | ||
Total, Related Allowance | 0 | ||
Commercial construction | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 0 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 0 | ||
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with an allowance recorded, Recorded Investment | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | ||
Loans with an allowance recorded, Related Allowance | 0 | ||
Total, Recorded Investment | 0 | ||
Total, Unpaid Principal Balance | 0 | ||
Total, Related Allowance | 0 | ||
Land and land development | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 0 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 0 | ||
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with an allowance recorded, Recorded Investment | 0 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 0 | ||
Loans with an allowance recorded, Related Allowance | 0 | ||
Total, Recorded Investment | 0 | ||
Total, Unpaid Principal Balance | 0 | ||
Total, Related Allowance | 0 | ||
Commercial business | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 856 | 1,007 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 946 | 1,189 | |
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 1,068 | 1,511 | |
Loans with no related allowance recorded, Interest Income Recognized | 12 | 2 | |
Loans with an allowance recorded, Recorded Investment | 48 | 0 | |
Loans with an allowance recorded, Unpaid Principal Balance | 135 | 0 | |
Loans with an allowance recorded, Related Allowance | 28 | 0 | |
Loans with an allowance recorded, Average Recorded Investment | 67 | ||
Total, Recorded Investment | 904 | 1,007 | |
Total, Unpaid Principal Balance | 1,081 | 1,189 | |
Total, Related Allowance | 28 | 0 | |
Total, Average Recorded Investment | 1,135 | 1,511 | |
Total, Interest Income Recognized | 12 | 2 | |
SBA commercial business | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 293 | 221 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 982 | 532 | |
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 757 | 502 | |
Loans with an allowance recorded, Recorded Investment | 956 | 870 | |
Loans with an allowance recorded, Unpaid Principal Balance | 1,214 | 1,349 | |
Loans with an allowance recorded, Related Allowance | 714 | 674 | |
Loans with an allowance recorded, Average Recorded Investment | 1,267 | 219 | |
Total, Recorded Investment | 1,249 | 1,091 | |
Total, Unpaid Principal Balance | 2,196 | 1,881 | |
Total, Related Allowance | 714 | 674 | |
Total, Average Recorded Investment | 2,024 | 721 | |
Consumer | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 88 | 93 | |
Loans with no related allowance recorded, Unpaid Principal Balance | 72 | 81 | |
Loans with no related allowance recorded, Related Allowance | 0 | ||
Loans with no related allowance recorded, Average Recorded Investment | 77 | 87 | |
Loans with an allowance recorded, Recorded Investment | 223 | 145 | |
Loans with an allowance recorded, Unpaid Principal Balance | 223 | 145 | |
Loans with an allowance recorded, Related Allowance | 0 | ||
Loans with an allowance recorded, Average Recorded Investment | 184 | 138 | |
Total, Recorded Investment | 311 | 238 | |
Total, Unpaid Principal Balance | 295 | 226 | |
Total, Related Allowance | $ 0 | ||
Total, Average Recorded Investment | $ 261 | $ 225 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Nonperforming loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | $ 11,523 | $ 10,856 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 11,523 | 10,856 |
Residential real estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 1,946 | 1,213 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 1,946 | 1,213 |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 498 | 516 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 498 | 516 |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 0 | |
SBA commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 7,445 | 7,725 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 7,445 | 7,725 |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 0 | |
Residential construction | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 0 | |
Commercial construction | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 0 | |
Land and land development | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 0 | |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 0 | |
Commercial business | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 74 | 73 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 74 | 73 |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 1,249 | 1,091 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | 1,249 | 1,091 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual Loans | 311 | 238 |
Loans 90+ Days Past Due Still Accruing | 0 | |
Total Nonperforming Loans | $ 311 | $ 238 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Aging of recorded investment in past due loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | $ 1,597,743 | $ 1,489,277 |
Recorded investment in loans | 1,605,366 | 1,495,283 |
Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 2,097 | 1,495 |
Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 235 | 53 |
Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 7,623 | 6,006 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 5,291 | 4,458 |
Residential Real Estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 412,741 | 368,622 |
Recorded investment in loans | 415,193 | 370,048 |
Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 1,508 | 1,169 |
Residential Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 229 | 53 |
Residential Real Estate [Member] | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 2,452 | 1,426 |
Residential Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 715 | 204 |
Commercial Real Estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 178,257 | 169,574 |
Recorded investment in loans | 179,014 | 170,090 |
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 259 | |
Commercial Real Estate [Member] | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 757 | 516 |
Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 498 | 516 |
Single Tenant Net Lease [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 735,430 | 676,593 |
Recorded investment in loans | 735,430 | 676,593 |
SBA Commercial Real Estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 51,197 | 57,603 |
Recorded investment in loans | 54,637 | 60,973 |
SBA Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 262 | |
SBA Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 6 | |
SBA Commercial Real Estate [Member] | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 3,440 | 3,370 |
SBA Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 3,172 | 3,370 |
Multifamily Residential [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 32,514 | 32,433 |
Recorded investment in loans | 32,514 | 32,433 |
Residential Construction [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 21,180 | 18,199 |
Recorded investment in loans | 21,180 | 18,199 |
Commercial Construction [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 4,596 | 5,924 |
Recorded investment in loans | 4,596 | 5,924 |
Land And Land Development [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 11,067 | 11,872 |
Recorded investment in loans | 11,067 | 11,872 |
Commercial Business | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 92,317 | 90,263 |
Recorded investment in loans | 92,429 | 90,336 |
Commercial Business | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 65 | |
Commercial Business | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 112 | 73 |
Commercial Business | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 47 | 73 |
SBA Commercial Business [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 20,006 | 20,195 |
Recorded investment in loans | 20,811 | 20,663 |
SBA Commercial Business [Member] | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 231 | |
SBA Commercial Business [Member] | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 805 | 468 |
SBA Commercial Business [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 805 | 237 |
Consumer Loan [Member] | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 38,438 | 37,999 |
Recorded investment in loans | 38,495 | 38,152 |
Consumer Loan [Member] | Financing Receivables, 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 3 | 95 |
Consumer Loan [Member] | Financial Asset, Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 57 | 153 |
Consumer Loan [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | $ 54 | $ 58 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Recorded investment in loans by risk category (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | $ 1,605,366 | $ 1,495,283 |
Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,590,097 | 1,479,457 |
Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 2,098 | 1,677 |
Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 11,313 | 12,273 |
Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,858 | 1,876 |
Residential Real Estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 415,193 | 370,048 |
Residential Real Estate [Member] | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 413,063 | 368,377 |
Residential Real Estate [Member] | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,955 | 1,501 |
Residential Real Estate [Member] | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 175 | 170 |
Commercial Real Estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 179,014 | 170,090 |
Commercial Real Estate [Member] | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 178,306 | 169,363 |
Commercial Real Estate [Member] | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 708 | 727 |
Single Tenant Net Lease [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 735,430 | 676,593 |
Single Tenant Net Lease [Member] | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 735,430 | 676,593 |
SBA Commercial Real Estate [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 54,637 | 60,973 |
SBA Commercial Real Estate [Member] | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 46,070 | 51,053 |
SBA Commercial Real Estate [Member] | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,123 | 1,143 |
SBA Commercial Real Estate [Member] | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 5,805 | 7,112 |
SBA Commercial Real Estate [Member] | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 1,639 | 1,665 |
Multifamily Residential [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 32,514 | 32,433 |
Multifamily Residential [Member] | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 32,514 | 32,433 |
Residential Construction [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 21,180 | 18,199 |
Residential Construction [Member] | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 21,180 | 18,199 |
Commercial Construction [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 4,596 | 5,924 |
Commercial Construction [Member] | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 4,596 | 5,924 |
Land And Land Development [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 11,067 | 11,872 |
Land And Land Development [Member] | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 11,067 | 11,872 |
Commercial Business | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 92,429 | 90,336 |
Commercial Business | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 92,217 | 90,001 |
Commercial Business | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 125 | 250 |
Commercial Business | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 87 | 85 |
SBA Commercial Business [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 20,811 | 20,663 |
SBA Commercial Business [Member] | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 17,248 | 17,583 |
SBA Commercial Business [Member] | Special Mention | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 850 | 284 |
SBA Commercial Business [Member] | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 2,669 | 2,755 |
SBA Commercial Business [Member] | Doubtful | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 44 | 41 |
Consumer Loan [Member] | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 38,495 | 38,152 |
Consumer Loan [Member] | Pass | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | 38,406 | 38,059 |
Consumer Loan [Member] | Substandard | ||
Loans and Allowance for Loan Losses | ||
Recorded investment in loans | $ 89 | $ 93 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Recorded investment in troubled debt restructurings by class of loan and accrual status (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Financing Receivable, Modifications [Line Items] | ||
Accruing | $ 2,580 | $ 2,714 |
Nonaccrual | 2,286 | 2,330 |
Total | 4,866 | 5,044 |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 1,021 | 1,035 |
Total | 1,021 | 1,035 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 383 | 391 |
Nonaccrual | 420 | 430 |
Total | 803 | 821 |
SBA Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccrual | 1,604 | 1,627 |
Total | 1,604 | 1,627 |
Multifamily Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 346 | 354 |
Total | 346 | 354 |
Commercial Business | ||
Financing Receivable, Modifications [Line Items] | ||
Accruing | 830 | 934 |
Total | 830 | 934 |
SBA Commercial Business [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Nonaccrual | 262 | 273 |
Total | $ 262 | $ 273 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Changes in carrying value accounted for fair value of the loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance, beginning of period | $ 3,790 | |
Balance, end of period | 3,301 | |
Small Business Administration Loans | ||
Balance, beginning of period | 3,790 | $ 4,447 |
Servicing rights capitalized | 198 | 346 |
Amortization | (195) | (288) |
Direct write-offs | (141) | (35) |
Change in valuation allowance | (351) | (41) |
Balance, end of period | 3,301 | 4,429 |
Mortgage Servicing Rights. | ||
Balance, beginning of period | 63,263 | 49,579 |
Servicing rights capitalized | 142 | 4,504 |
Loan repayments | (1,023) | (2,492) |
Changes in valuation model inputs or assumptions | (217) | 3,167 |
Balance, end of period | 62,165 | $ 54,758 |
Nonresidential MSR | ||
Amortization | $ (9) |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Key assumptions used to estimate the fair value of the loans (Details) - Mortgage Servicing Rights. | 3 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Sep. 30, 2022 | |
Maximum [Member] | ||
Discount rate | 14.50% | 14.50% |
Prepayment rate | 85.80% | 74.89% |
Minimum [Member] | ||
Discount rate | 9.50% | 9.50% |
Prepayment rate | 3.75% | 6.01% |
Weighted Average [Member] | ||
Discount rate | 9.52% | 9.51% |
Prepayment rate | 6.69% | 6.63% |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Mortgage Servicing Rights at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance , beginning of period | $ 141 | |
Changes in fair value related to: | ||
Balance ,end of period | 132 | |
Mortgage Servicing Rights. | ||
Servicing rights capitalized | 142 | $ 4,504 |
Changes in fair value related to: | ||
Loan repayments | (1,023) | (2,492) |
Changes in valuation model inputs or assumptions | (217) | $ 3,167 |
Nonresidential MSR | ||
Balance , beginning of period | 141 | |
Changes in fair value related to: | ||
Amortization | (9) | |
Balance ,end of period | $ 132 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Loans and Allowance for Loan Losses | |||
Mortgage loans in process of foreclosure amount | $ 206,000 | $ 204,000 | |
Loans and leases receivable impaired commitment to lend | 1,000 | 1,000 | |
Financing receivable allowance for credit losses, Write-downs | 329,000 | $ 81,000 | |
Provision for loan losses | 984,000 | 526,000 | |
Impaired financing receivable, Unpaid principal balance | 16,879,000 | 16,071,000 | |
Commercial Real Estate [Member] | |||
Loans and Allowance for Loan Losses | |||
Impaired financing receivable, Unpaid principal balance | 959,000 | 982,000 | |
Residential Real Estate [Member] | |||
Loans and Allowance for Loan Losses | |||
Financing receivable allowance for credit losses, Write-downs | 23,000 | ||
Impaired financing receivable, Unpaid principal balance | 3,257,000 | 2,524,000 | |
Commercial Business | |||
Loans and Allowance for Loan Losses | |||
Impaired financing receivable, Unpaid principal balance | 1,081,000 | 1,189,000 | |
SBA Lending Segment [Member] | |||
Loans and Allowance for Loan Losses | |||
Servicing assets valuation allowance | 530,000 | 179,000 | |
SBA [Member] | |||
Loans and Allowance for Loan Losses | |||
Impaired financing receivable, Unpaid principal balance | 237,900,000 | 250,500,000 | 238,900,000 |
SBA [Member] | Bank Servicing | |||
Loans and Allowance for Loan Losses | |||
Revenue from Contract with Customer | 21,000 | 20,000 | |
SBA [Member] | SBA Lending Segment [Member] | |||
Loans and Allowance for Loan Losses | |||
Revenue from Contract with Customer | 553,000 | 627,000,000,000 | |
Troubled Debt Restructuring | |||
Loans and Allowance for Loan Losses | |||
Loans and leases receivable allowance covered | 125,000 | 161,000 | |
Financing receivable allowance for credit losses, Write-downs | 3,000 | ||
Mortgage Servicing Rights. | |||
Loans and Allowance for Loan Losses | |||
Impaired financing receivable, Unpaid principal balance | 4,820,000,000 | 4,880,000,000 | |
Revenue from Contract with Customer | 2,400,000 | $ 2,100,000 | |
Escrow balances maintained with foregoing loan servicing and other liabilities | 28,800,000 | 46,000,000 | |
Nonresidential MSR | |||
Loans and Allowance for Loan Losses | |||
Impaired financing receivable, Unpaid principal balance | 44,000,000 | $ 44,600,000 | |
Servicing assets valuation allowance | 0 | ||
Nonresidential MSR | Specified servicing fees and late fees | |||
Loans and Allowance for Loan Losses | |||
Revenue from Contract with Customer | 9,000 | ||
Nonresidential MSR | Other ancillary fees related to nonresidential mortgage | |||
Loans and Allowance for Loan Losses | |||
Revenue from Contract with Customer | $ 11,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Deposits. | ||
Noninterest-bearing demand deposits | $ 315,390 | $ 340,172 |
NOW accounts | 345,597 | 343,296 |
Money market accounts | 243,443 | 238,219 |
Savings accounts | 170,732 | 171,779 |
Retail time deposits | 136,515 | 129,864 |
Brokered and reciprocal certificates of deposit | 326,164 | 292,504 |
Total deposits | $ 1,537,841 | $ 1,515,834 |
Supplemental Disclosure for N_3
Supplemental Disclosure for Net Income Per Share - Net income per share information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Basic: | ||
Net income attributable to First Savings Financial Group, Inc. available to common shareholders | $ 2,871 | $ 4,305 |
Shares: | ||
Weighted average common shares outstanding, basic | 6,915,909 | 7,116,790 |
Net income (loss) per common share, basic | $ 0.42 | $ 0.60 |
Diluted: | ||
Net income attributable to First Savings Financial Group, Inc. available to common shareholders | $ 2,871 | $ 4,305 |
Shares: | ||
Weighted average common shares outstanding, basic | 6,915,909 | 7,116,790 |
Add: Dilutive effect of outstanding options | 53,229 | 81,177 |
Add: Dilutive effect of restricted stock | 2,917 | 9,243 |
Weighted average common shares outstanding, as adjusted | 6,972,055 | 7,207,210 |
Net income (loss) per common share, diluted | $ 0.41 | $ 0.60 |
Supplemental Disclosure for N_4
Supplemental Disclosure for Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock [Member] | ||
Supplemental Disclosure for Net Income Per Share | ||
Antidilutive restricted stock awards | 0 | 0 |
Stock options | ||
Supplemental Disclosure for Net Income Per Share | ||
Antidilutive restricted stock awards | 275,889 | 137,250 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2022 | Jun. 30, 2021 | |
Cash payments for: | ||
Interest | $ 6,540 | $ 1,866 |
Income taxes (net of refunds received) | $ (117) | $ (5) |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Balances of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Fair Value Measurements and Disclosures | ||
Total securities available for sale | $ 329,163 | $ 316,517 |
Residential mortgage loans held for sale | 20,675 | 38,579 |
Derivative assets (included in other assets) | $ 456 | $ 1,030 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Residential mortgage loan servicing rights, at fair value | $ 62,165 | $ 63,263 |
Derivative liabilities (included in other liabilities) | 110 | 427 |
SBA loan servicing rights | 3,301 | 3,790 |
U.S. Treasury bills and notes | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 27,908 | 27,295 |
Agency mortgage-backed | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 27,161 | 27,500 |
Agency CMO | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 13,920 | 14,821 |
Privately-issued CMO | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 429 | 470 |
Privately-issued ABS | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 527 | 569 |
SBA certificates | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 11,788 | 12,012 |
Municipal bonds | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 247,430 | 233,850 |
Recurring Basis | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 329,163 | 316,517 |
Residential mortgage loans held for sale | 20,675 | 38,579 |
Equity securities (included in other assets) | 117 | 103 |
Residential mortgage loan servicing rights, at fair value | 62,165 | 63,263 |
Recurring Basis | U.S. Treasury bills and notes | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 27,908 | 27,295 |
Recurring Basis | Agency mortgage-backed | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 27,161 | 27,500 |
Recurring Basis | Agency CMO | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 13,920 | 14,821 |
Recurring Basis | Privately-issued CMO | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 429 | 470 |
Recurring Basis | Privately-issued ABS | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 527 | 569 |
Recurring Basis | SBA certificates | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 11,788 | 12,012 |
Recurring Basis | Municipal bonds | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 247,430 | 233,850 |
Nonrecurring Basis | ||
Fair Value Measurements and Disclosures | ||
Total impaired loans | 2,985 | 2,910 |
SBA loan servicing rights | 3,301 | 3,790 |
Nonrecurring Basis | SBA commercial real estate | ||
Fair Value Measurements and Disclosures | ||
Total impaired loans | 2,576 | 2,574 |
Nonrecurring Basis | Commercial business | ||
Fair Value Measurements and Disclosures | ||
Total impaired loans | 20 | 46 |
Nonrecurring Basis | SBA commercial business | ||
Fair Value Measurements and Disclosures | ||
Total impaired loans | 389 | 290 |
Level 1 | ||
Fair Value Measurements and Disclosures | ||
Equity securities (included in other assets) | 117 | 103 |
Level 1 | Recurring Basis | ||
Fair Value Measurements and Disclosures | ||
Equity securities (included in other assets) | 117 | 103 |
Level 2 | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 329,163 | 316,517 |
Level 2 | Recurring Basis | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 329,163 | 316,517 |
Residential mortgage loans held for sale | 20,675 | 38,579 |
Level 2 | Recurring Basis | U.S. Treasury bills and notes | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 27,908 | 27,295 |
Level 2 | Recurring Basis | Agency mortgage-backed | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 27,161 | 27,500 |
Level 2 | Recurring Basis | Agency CMO | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 13,920 | 14,821 |
Level 2 | Recurring Basis | Privately-issued CMO | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 429 | 470 |
Level 2 | Recurring Basis | Privately-issued ABS | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 527 | 569 |
Level 2 | Recurring Basis | SBA certificates | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 11,788 | 12,012 |
Level 2 | Recurring Basis | Municipal bonds | ||
Fair Value Measurements and Disclosures | ||
Total securities available for sale | 247,430 | 233,850 |
Level 3 | ||
Fair Value Measurements and Disclosures | ||
SBA loan servicing rights | 3,301 | 3,790 |
Level 3 | Recurring Basis | ||
Fair Value Measurements and Disclosures | ||
Residential mortgage loan servicing rights, at fair value | 62,165 | 63,263 |
Level 3 | Nonrecurring Basis | ||
Fair Value Measurements and Disclosures | ||
Total impaired loans | 2,985 | 2,910 |
SBA loan servicing rights | 3,301 | 3,790 |
Level 3 | Nonrecurring Basis | SBA commercial real estate | ||
Fair Value Measurements and Disclosures | ||
Total impaired loans | 2,576 | 2,574 |
Level 3 | Nonrecurring Basis | Commercial business | ||
Fair Value Measurements and Disclosures | ||
Total impaired loans | 20 | 46 |
Level 3 | Nonrecurring Basis | SBA commercial business | ||
Fair Value Measurements and Disclosures | ||
Total impaired loans | $ 389 | $ 290 |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Reconciliation of derivative assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Beginning balance | $ (238) | $ 1,567 |
Unrealized gains (losses) recognized in earnings, net of settlements | 600 | 173 |
Ending balance | $ 362 | $ 1,740 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a recurring basis (Details) - Interest rate lock commitments | Dec. 31, 2022 | Sep. 30, 2022 |
Pull-through rate | Minimum | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 31% | 50% |
Pull-through rate | Maximum | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 100% | 100% |
Pull-through rate | Weighted Average | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 68% | 78% |
Direct costs to close | Minimum | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 0% | 0% |
Direct costs to close | Maximum | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 5.10% | 4% |
Direct costs to close | Weighted Average | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 0.50% | 0.70% |
Fair Value Measurements and D_6
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Additional information (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Sep. 30, 2022 item | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Derivative assets and liabilities held | $ 361,000 | $ 1,700,000 | |
Impairment charges on nonresidential mortgage loan servicing rights | $ 0 | 0 | |
Number of loans were 90 days or more past due | item | 0 | 0 | |
Recognized charges to write down other real estate owned to fair value | $ 0 | 0 | |
Level 3 | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Transfers from loans to OREO | 0 | ||
Impaired loans | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Provisions for loan losses | 200,000 | 691,000 | |
SBA | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Impairment charges on loan | $ (351,000) | $ 41,000 | |
Maximum | Collateral | Discount rate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Fair value inputs discount rate | 10% | ||
Maximum | Impaired loans | Discount rate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Fair value inputs discount rate | 100% | ||
Maximum | SBA | Discount rate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Discount rate | 25% | 25% | |
Maximum | SBA | Prepayment rate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Prepayment rate | 29.59% | 29.26% | |
Minimum | Collateral | Discount rate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Fair value inputs discount rate | 0% | ||
Minimum | Impaired loans | Discount rate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Fair value inputs discount rate | 0% | ||
Minimum | SBA | Discount rate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Discount rate | 14.65% | 6.90% | |
Minimum | SBA | Prepayment rate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Prepayment rate | 6.70% | 7.08% | |
Weighted Average | SBA | Discount rate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Discount rate | 17.89% | 12.71% | |
Weighted Average | SBA | Prepayment rate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Prepayment rate | 14.69% | 15.27% |
Fair Value Measurements and D_7
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Summary of Aggregate Fair Value and the Aggregate Remaining Principal Balance for Residential Mortgage Loans Held for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Residential mortgage loans held for sale Aggregate Fair Value | $ 20,675 | $ 38,579 |
Residential mortgage loans held for sale Aggregate Principal Balance | 20,196 | 38,517 |
Residential mortgage loans held for sale Difference | $ 479 | $ 62 |
Fair Value Measurements and D_8
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Summary of Gains and Losses and Interest Included in Earnings Related to Financial Assets Measured at Fair Value Under the Fair Value Options (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurements and Disclosures | ||
Total gains and interest included in earnings | $ 1,096 | $ 2,617 |
Interest income | ||
Fair Value Measurements and Disclosures | ||
Interest income | 428 | 994 |
Mortgage Banking | ||
Fair Value Measurements and Disclosures | ||
Gains - included in mortgage banking income | $ 668 | $ 1,623 |
Fair Value Measurements and D_9
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Summary of fair value of loans measured using an entry price notion (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Sep. 30, 2022 | |
Financial assets: | ||
Cash and due from banks | $ 25,226 | $ 18,312 |
Interest-bearing deposits with banks | 13,052 | 23,353 |
Securities available for sale | 329,163 | 316,517 |
Securities held to maturity | 1,520 | 1,558 |
Loans, net | 1,582,940 | 1,474,544 |
SBA loan servicing rights | 3,301 | 3,790 |
Financial liabilities: | ||
Deposits | 1,537,841 | 1,515,834 |
Federal Home Loan Bank borrowings | 377,643 | 307,303 |
Other borrowings | 95,458 | 88,206 |
Accrued interest payable | 1,984 | 1,302 |
Advance payments by borrowers for taxes and insurance | 695 | 1,207 |
Fair Value, Recurring [Member] | ||
Financial assets: | ||
Securities available for sale | 329,163 | 316,517 |
Derivative assets (included in other assets) | 456 | 1,030 |
Equity securities (included in other assets) | 117 | 103 |
Financial liabilities: | ||
Derivative liabilities (included in other liabilities) | 110 | 427 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 25,226 | 18,312 |
Interest-bearing deposits with banks | 13,052 | 23,353 |
Equity securities (included in other assets) | 117 | 103 |
Level 1 | Fair Value, Recurring [Member] | ||
Financial assets: | ||
Equity securities (included in other assets) | 117 | 103 |
Level 2 | ||
Financial assets: | ||
Interest-bearing time deposits | 1,854 | 1,613 |
Securities available for sale | 329,163 | 316,517 |
Securities held to maturity | 1,548 | 1,593 |
Residential mortgage loans held for sale | 20,675 | 38,579 |
SBA loans held for sale | 24,010 | |
Accrued interest receivable | 10,436 | 8,332 |
Derivative assets (included in other assets) | 79 | 872 |
Financial liabilities: | ||
Federal Home Loan Bank borrowings | 372,776 | 302,090 |
Subordinated note | 48,819 | 48,685 |
Other borrowings | 45,184 | |
Accrued interest payable | 1,984 | 1,302 |
Advance payments by borrowers for taxes and insurance | 695 | 1,207 |
Derivative liabilities (included in other liabilities) | 95 | 31 |
Level 2 | Fair Value, Recurring [Member] | ||
Financial assets: | ||
Securities available for sale | 329,163 | 316,517 |
Derivative assets (included in other assets) | 79 | 872 |
Financial liabilities: | ||
Derivative liabilities (included in other liabilities) | 95 | 31 |
Level 3 | ||
Financial assets: | ||
SBA loans held for sale | 25,603 | |
Loans, net | 1,489,154 | 1,402,222 |
SBA loan servicing rights | 3,301 | 3,790 |
Residential mortgage loan servicing rights | 62,165 | 63,263 |
Nonresidential mortgage loan servicing rights | 132 | 141 |
SBA loan servicing rights | 3,789 | |
Derivative assets (included in other assets) | 377 | 158 |
Financial liabilities: | ||
Deposits | 1,533,129 | 1,510,792 |
Other borrowings | 37,989 | |
Derivative liabilities (included in other liabilities) | 15 | 396 |
Level 3 | Fair Value, Recurring [Member] | ||
Financial assets: | ||
Derivative assets (included in other assets) | 377 | 158 |
Financial liabilities: | ||
Derivative liabilities (included in other liabilities) | 15 | 396 |
Estimate of fair value measurement | ||
Financial assets: | ||
Cash and due from banks | 25,226 | 18,312 |
Interest-bearing deposits with banks | 13,052 | 23,353 |
Interest-bearing time deposits | 1,854 | 1,613 |
Securities available for sale | 329,163 | 316,517 |
Securities held to maturity | 1,520 | 1,558 |
Residential mortgage loans held for sale | 20,675 | 38,579 |
SBA loans held for sale | 23,606 | 21,883 |
Loans, net | 1,582,940 | 1,474,544 |
FRB and FHLB stock | 21,564 | 20,004 |
Accrued interest receivable | 10,436 | 8,332 |
SBA loan servicing rights | 3,301 | 3,790 |
Residential mortgage loan servicing rights | 62,165 | 63,263 |
Nonresidential mortgage loan servicing rights | 132 | 141 |
SBA loan servicing rights | 3,790 | |
Derivative assets (included in other assets) | 456 | 1,030 |
Equity securities (included in other assets) | 117 | 103 |
Financial liabilities: | ||
Deposits | 1,537,841 | 1,515,834 |
Federal Home Loan Bank borrowings | 377,643 | 307,303 |
Subordinated note | 50,274 | 50,217 |
Other borrowings | 45,184 | 37,989 |
Accrued interest payable | 1,984 | 1,302 |
Advance payments by borrowers for taxes and insurance | 695 | 1,207 |
Derivative liabilities (included in other liabilities) | $ 110 | $ 427 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Details) - USD ($) | Oct. 06, 2008 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Employee Stock Ownership Plan | ||||
Total ESOP shares | 203,363 | 306,202 | 306,202 | |
Compensation expense recognized | $ 0 | $ 0 | ||
Employee stock ownership plan (per share) | $ 10 |
Stock Based Compensation Plan_2
Stock Based Compensation Plans - Fair Value Of Options Granted (Details) | 3 Months Ended |
Dec. 31, 2022 $ / shares | |
Stock Based Compensation Plans | |
Expected dividend yield | 2.32% |
Risk-free interest rate | 1.55% |
Expected volatility | 27% |
Expected life of options | 7 years 1 month 6 days |
Weighted average fair value at grant date | $ 7.03 |
Stock Based Compensation Plan_3
Stock Based Compensation Plans - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Number of Shares | |
Outstanding at beginning of year | shares | 351,369 |
Granted | shares | 66,000 |
Outstanding at end of year | shares | 417,369 |
Vested and expected to vest | shares | 417,369 |
Exercisable at end of year | shares | 223,830 |
Weighted Average Exercise Price | |
Outstanding at beginning of year | $ / shares | $ 20.57 |
Granted | $ / shares | 22.49 |
Outstanding at end of year | $ / shares | 20.87 |
Vested and expected to vest | $ / shares | 20.87 |
Exercisable at end of year | $ / shares | $ 17.77 |
Weighted Average Remaining Contractual Term (Years) | |
Outstanding at end of period | 7 years |
Vested and expected to vest | 7 years |
Exercisable at end of period | 5 years 4 months 24 days |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ | $ 867 |
Vested and expected to vest | $ | 867 |
Exercisable at end of period | $ | $ 866 |
Stock Based Compensation Plan_4
Stock Based Compensation Plans - Non vested Restricted Shares (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | ||
Nonvested | 51,324 | |
Granted | 22,000 | |
Vested | (16,408) | (12,225) |
Nonvested | 56,916 | |
Weighted Average Grant Date Fair Value | ||
Nonvested | $ 26.07 | |
Granted | 22.49 | |
Vested | 25.68 | |
Nonvested | $ 24.80 |
Stock Based Compensation Plan_5
Stock Based Compensation Plans - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Based Compensation Plans | ||
Terms of award | P10Y | |
Vesting period | 5 years | |
Equity Incentive Plan 2016 | ||
Stock Based Compensation Plans | ||
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 | ||
Stock Based Compensation Plans | ||
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 | 85,058 | |
Equity Incentive Plan 2010 | ||
Stock Based Compensation Plans | ||
Common stock available under incentive plan | 0 | |
Employee Stock Option | ||
Stock Based Compensation Plans | ||
Vesting period | 4 years 2 months 12 days | |
Intrinsic value of stock options exercised | $ 0 | |
Compensation expense | 82,000 | $ 52,000 |
Unrecognized compensation expenses related to nonvested stock options | 1,200,000 | |
Proceeds from exercise of stock options | 0 | 0 |
Tax benefit from the exercise of stock options | $ 0 | 0 |
Employee Stock Option | Equity Incentive Plan 2016 | ||
Stock Based Compensation Plans | ||
Aggregated number of shares in stock options | 198,000 | |
Common stock available under incentive plan | 3,060 | |
Employee Stock Option | 2021 Plan | ||
Stock Based Compensation Plans | ||
Common stock available under incentive plan | 63,793 | |
Restricted Stock | ||
Stock Based Compensation Plans | ||
Number of restricted shares granted | 22,000 | |
Compensation expense | $ 103,000 | 75,000 |
Unrecognized compensation expenses related to nonvested stock options | $ 1,400,000 | |
Weighted average period of compensation expense (in years) | 4 years 1 month 20 days | |
Fair value of restricted shares | $ 369,000 | $ 327,000 |
Restricted shares vested | 16,408 | 12,225 |
Restricted Stock | Maximum | ||
Stock Based Compensation Plans | ||
Vesting period | 5 years | |
Restricted Stock | Minimum | ||
Stock Based Compensation Plans | ||
Vesting period | 1 year | |
Restricted Stock | Equity Incentive Plan 2016 | ||
Stock Based Compensation Plans | ||
Aggregated number of shares in stock options | 66,000 | |
Common stock available under incentive plan | 1,500 | |
Restricted Stock | 2021 Plan | ||
Stock Based Compensation Plans | ||
Number of restricted shares granted | 89,015 | |
Common stock available under incentive plan | 21,265 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Derivative Financial Instruments | ||
Notional Amount | $ 68,869 | $ 108,952 |
Asset Derivatives | 456 | 1,030 |
Liability Derivatives | $ 110 | $ 427 |
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 | $ 42,369 | $ 48,952 |
Asset Derivatives | 377 | 158 |
Liability Derivatives | 15 | 396 |
Forward mortgage loan sale contracts | ||
Derivative Financial Instruments | ||
Notional Amount | 26,500 | 60,000 |
Asset Derivatives | 79 | 872 |
Liability Derivatives | $ 95 | $ 31 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Income (loss) related to derivative financial instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Financial Instruments | ||
Income (loss) related to derivative financial instruments | $ 54 | $ 868 |
Interest rate lock commitments | ||
Derivative Financial Instruments | ||
Income (loss) related to derivative financial instruments | 599 | 173 |
Forward mortgage loan sale contracts | ||
Derivative Financial Instruments | ||
Income (loss) related to derivative financial instruments | $ (545) | $ 695 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 |
Derivative Financial Instruments | ||
Cash collateral derivative counterparty obligations | $ 1.5 | $ 2.4 |
Regulatory Capital (Details)
Regulatory Capital (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) |
Consolidated | ||
Regulatory Capital | ||
Total capital (to risk weighted assets) Actual Amount | $ 227,650 | $ 224,895 |
Tier 1 capital (to risk-weighted assets) Actual Amount | 161,296 | 159,318 |
Common equity tier 1 capital (to risk-weighted assets) Actual Amount | 161,296 | 159,318 |
Tier 1 capital (to average adjusted total assets) Actual Amount | $ 161,296 | $ 159,318 |
Total capital (to risk weighted assets) Actual Ratio | 0.1201 | 0.1233 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 0.0851 | 0.0873 |
Common equity tier 1 capital (to risk-weighted assets) Actual Ratio | 0.0851% | 0.0873% |
Tier 1 capital (to average adjusted total assets) Actual Ratio | 0.0755 | 0.0796 |
Total capital (to risk weighted assets) To Be Well Minimum For Capital Adequacy Purposes Amount | $ 151,625 | $ 145,973 |
Tier 1 capital (to risk-weighted assets) To Be Well Minimum For Capital Adequacy Purposes Amount | 113,719 | 109,480 |
Common equity tier 1 capital (to risk-weighted assets) To Be Well Minimum For Capital Adequacy Purposes Amount | 85,289 | 82,110 |
Tier 1 capital (to average adjusted total assets) To Be Well Minimum For Capital Adequacy Purposes Amount | $ 85,455 | $ 80,031 |
Total capital (to risk weighted assets) To Be Well Minimum For Capital Adequacy Purposes Ratio | 0.0800 | 0.0800 |
Tier 1 capital (to risk-weighted assets) To Be Well Minimum For Capital Adequacy Purposes Ratio | 0.0600 | 0.0600 |
Common equity tier 1 capital (to risk-weighted assets) To Be Well Minimum For Capital Adequacy Purposes Ratio | 0.045% | 0.045% |
Tier 1 capital (to average adjusted total assets) To Be Well Minimum For Capital Adequacy Purposes Ratio | 0.0400 | 0.0400 |
Bank | ||
Regulatory Capital | ||
Total capital (to risk weighted assets) Actual Amount | $ 215,966 | $ 208,280 |
Tier 1 capital (to risk-weighted assets) Actual Amount | 199,886 | 192,920 |
Common equity tier 1 capital (to risk-weighted assets) Actual Amount | 199,886 | 192,920 |
Tier 1 capital (to average adjusted total assets) Actual Amount | $ 199,886 | $ 192,920 |
Total capital (to risk weighted assets) Actual Ratio | 0.1141 | 0.1144 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 0.1056 | 0.1059 |
Common equity tier 1 capital (to risk-weighted assets) Actual Ratio | 0.1056% | 0.1059% |
Tier 1 capital (to average adjusted total assets) Actual Ratio | 0.0935 | 0.0958 |
Total capital (to risk weighted assets) To Be Well Minimum For Capital Adequacy Purposes Amount | $ 151,418 | $ 145,713 |
Tier 1 capital (to risk-weighted assets) To Be Well Minimum For Capital Adequacy Purposes Amount | 113,564 | 109,285 |
Common equity tier 1 capital (to risk-weighted assets) To Be Well Minimum For Capital Adequacy Purposes Amount | 85,173 | 81,963 |
Tier 1 capital (to average adjusted total assets) To Be Well Minimum For Capital Adequacy Purposes Amount | $ 85,505 | $ 80,555 |
Total capital (to risk weighted assets) To Be Well Minimum For Capital Adequacy Purposes Ratio | 0.0800 | 0.0800 |
Tier 1 capital (to risk-weighted assets) To Be Well Minimum For Capital Adequacy Purposes Ratio | 0.0600 | 0.0600 |
Common equity tier 1 capital (to risk-weighted assets) To Be Well Minimum For Capital Adequacy Purposes Ratio | 0.045% | 0.045% |
Tier 1 capital (to average adjusted total assets) To Be Well Minimum For Capital Adequacy Purposes Ratio | 0.0400 | 0.0400 |
Total capital (to risk weighted assets) Minimum Capitalized Under Prompt Corrective Action Provisions Amount | $ 189,273 | $ 182,141 |
Tier 1 capital (to risk-weighted assets) Minimum Capitalized Capitalized Under Prompt Corrective Action Provisions Amount | 151,418 | 145,713 |
Common equity tier 1 capital (to risk-weighted assets) Minimum Capitalized Under Prompt Corrective Action Provisions Amount | 123,027 | 118,392 |
Tier 1 capital (to average adjusted total assets) Minimum Capitalized Under Prompt Corrective Action Provisions Amount | $ 106,881 | $ 100,693 |
Total capital (to risk weighted assets) Minimum Capitalized Capitalized Under Prompt Corrective Action Provisions Ratio | 0.1000 | 0.1000 |
Tier 1 capital (to risk-weighted assets) Minimum Capitalized Under Prompt Corrective Action Provisions Ratio | 0.0800 | 0.0800 |
Common equity tier 1 capital (to risk-weighted assets) Minimum Capitalized Under Prompt Corrective Action Provisions Ratio | 0.065% | 0.065% |
Tier 1 capital (to average adjusted total assets) Minimum Capitalized Under Prompt Corrective Action Provisions Ratio | 0.0500 | 0.0500 |
Regulatory Capital - Additional
Regulatory Capital - Additional information (Details) - USD ($) $ in Billions | 3 Months Ended | |||
Dec. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2019 | Sep. 30, 2015 | |
Regulatory Capital | ||||
Percentage of capital conservation buffer | 2.50% | 2.50% | 2.50% | 0% |
Maximum amount to attain consolidated capital requirements | $ 3 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | |
Segment Reporting | |||
Number of operating segments | segment | 3 | ||
Net interest income | $ 16,261 | $ 13,903 | |
Provision (credit) for loan losses | 984 | 526 | |
Net interest income after provision | 15,277 | 13,377 | |
Net gains on sales of loans, SBA | 775 | 1,636 | |
Mortgage banking income (loss) | 2,496 | 12,744 | |
Noninterest income | 5,188 | 16,591 | |
Noninterest expense | 17,511 | 24,852 | |
Income (loss) before taxes | 2,954 | 5,116 | |
Income tax expense (benefit) | 83 | 811 | |
Net income | 2,871 | 4,305 | |
Non-cash items: | |||
Depreciation and amortization | 633 | 606 | |
Segment assets | 2,196,919 | 1,764,589 | $ 2,093,725 |
Core Banking | |||
Segment Reporting | |||
Net interest income | 15,008 | 11,495 | |
Provision (credit) for loan losses | 701 | (144) | |
Net interest income after provision | 14,307 | 11,639 | |
Mortgage banking income (loss) | (10) | (4) | |
Noninterest income | 1,928 | 1,942 | |
Noninterest expense | 9,797 | 9,582 | |
Income (loss) before taxes | 6,438 | 4,099 | |
Income tax expense (benefit) | 996 | 500 | |
Net income | 5,492 | 3,599 | |
Non-cash items: | |||
Depreciation and amortization | 601 | 550 | |
Segment assets | 2,005,780 | 1,421,680 | |
SBA Lending | |||
Segment Reporting | |||
Net interest income | 995 | 1,875 | |
Provision (credit) for loan losses | 283 | 670 | |
Net interest income after provision | 712 | 1,205 | |
Net gains on sales of loans, SBA | 775 | 1,636 | |
Noninterest income | 754 | 1,901 | |
Noninterest expense | 1,924 | 2,236 | |
Income (loss) before taxes | (458) | 870 | |
Income tax expense (benefit) | (107) | 265 | |
Net income | (351) | 605 | |
Non-cash items: | |||
Depreciation and amortization | 5 | 8 | |
Segment assets | 100,304 | 157,481 | |
Mortgage Banking | |||
Segment Reporting | |||
Net interest income | 258 | 533 | |
Net interest income after provision | 258 | 533 | |
Mortgage banking income (loss) | 2,506 | 12,748 | |
Noninterest income | 2,506 | 12,748 | |
Noninterest expense | 5,790 | 13,134 | |
Income (loss) before taxes | (3,026) | 147 | |
Income tax expense (benefit) | (756) | 46 | |
Net income | (2,270) | 101 | |
Non-cash items: | |||
Depreciation and amortization | 27 | 48 | |
Segment assets | $ 90,835 | $ 185,428 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contracts with Customers | ||
Revenue from contracts with customers subject to ASC 606 | $ 1,450 | $ 1,325 |
Gain on sale of SBA loans | 775 | 1,636 |
Mortgage banking income | 2,496 | 12,744 |
Increase in cash value of life insurance | 225 | 254 |
Real estate lease income | 117 | 148 |
Other | 125 | 484 |
Other noninterest income | 3,738 | 15,266 |
Total noninterest income | 5,188 | 16,591 |
Service charges on deposit accounts | ||
Revenue from Contracts with Customers | ||
Revenue from contracts with customers subject to ASC 606 | 558 | 434 |
ATM and interchange fees | ||
Revenue from Contracts with Customers | ||
Revenue from contracts with customers subject to ASC 606 | 739 | 679 |
Investment advisory income | ||
Revenue from Contracts with Customers | ||
Revenue from contracts with customers subject to ASC 606 | 128 | 188 |
Other | ||
Revenue from Contracts with Customers | ||
Revenue from contracts with customers subject to ASC 606 | $ 25 | $ 24 |
Mortgage Banking Income (Detail
Mortgage Banking Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgage Banking Income | ||
Origination and sale of mortgage loans | $ 732 | $ 4,655 |
Mortgage brokerage income | 43 | 331 |
Net change in fair value of loans held for sale and interest rate lock commitments | 1,267 | (222) |
Realized and unrealized gains (losses) from forward sales commitments | (545) | 695 |
Capitalized residential mortgage loan servicing rights | 142 | 4,504 |
Net change in fair value of residential mortgage loan servicing rights | (1,240) | 675 |
Provisions for loan repurchases and indemnifications | (328) | (14) |
Net loan servicing income | 2,425 | 2,120 |
Total mortgage banking income | $ 2,496 | $ 12,744 |