Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2024 | May 02, 2024 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
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, $0.01 par value per share | |
Trading Symbol | FSFG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,883,160 | |
Entity Central Index Key | 0001435508 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
ASSETS | ||
Cash and due from banks | $ 16,114 | $ 18,014 |
Interest-bearing deposits with banks | 46,855 | 12,831 |
Total cash and cash equivalents | 62,969 | 30,845 |
Interest-bearing time deposits | 490 | 490 |
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 238,972 | 227,739 |
Debt securities held to maturity | 1,300 | |
Debt securities held to maturity | 1,170 | |
Loans held for sale, residential mortgage, at fair value | 2,979 | 24,692 |
Loans held for sale, Small Business Administration | 16,129 | 21,163 |
Loans, net of allowance for credit losses of $19,392 at March 31, 2024 and $16,900 at September 30, 2023 | 1,770,243 | |
Loans, net of allowance for credit losses of $19,392 at March 31, 2024 and $16,900 at September 30, 2023 | 1,882,458 | |
Federal Reserve Bank and Federal Home Loan Bank stock, at cost | 24,986 | 24,939 |
Premises and equipment, net | 27,177 | 27,861 |
Other real estate owned, held for sale | 647 | 677 |
Accrued interest receivable: | ||
Loans | 8,951 | 7,809 |
Securities | 1,923 | 2,352 |
Cash surrender value of life insurance | 46,888 | 46,226 |
Goodwill | 9,848 | 9,848 |
Core deposit intangibles | 479 | 561 |
Residential mortgage loan servicing rights, at fair value | 59,768 | |
Nonresidential mortgage loan servicing rights | 78 | 101 |
SBA loan servicing rights | 2,950 | 2,950 |
Other assets | 35,889 | 29,290 |
Total Assets | 2,364,983 | 2,288,854 |
Deposits: | ||
Noninterest-bearing | 196,239 | 242,237 |
Interest-bearing | 1,591,207 | 1,439,557 |
Total deposits | 1,787,446 | 1,681,794 |
Federal Home Loan Bank borrowings | 315,000 | 363,183 |
Other borrowings | 48,523 | 48,444 |
Accrued interest payable | 11,281 | 8,926 |
Advance payments by borrowers for taxes and insurance | 867 | 1,027 |
Reserve for unfunded lending commitments | 1,623 | 0 |
Accrued expenses and other liabilities | 35,187 | 34,499 |
Total Liabilities | 2,199,927 | 2,137,873 |
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 7,797,146 shares at March 31, 2024 (7,778,471 at September 30, 2023); outstanding 6,883,160 shares at March 31, 2024 (6,867,121 shares at September 30, 2023) | 78 | 78 |
Additional paid-in capital | 27,397 | 26,986 |
Retained earnings - substantially restricted | 167,648 | 166,306 |
Accumulated other comprehensive loss | (17,144) | (29,587) |
Unearned stock compensation | (1,096) | (1,015) |
Less treasury stock, at cost - 913,986 shares (911,350 shares at September 30, 2023) | (11,827) | (11,787) |
Total Stockholders' Equity | 165,056 | 150,981 |
Total Liabilities and Stockholders' Equity | $ 2,364,983 | $ 2,288,854 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | ||
Allowance for Credit Losses | $ 23 | |
Loans, net of allowance for loan losses | $ 16,900 | |
Loans, net of allowance for loan losses | $ 19,392 | $ 16,900 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,797,146 | 7,778,471 |
Common stock, shares outstanding | 6,883,160 | 6,867,121 |
Treasury stock, shares | 913,986 | 911,350 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
INTEREST INCOME | ||||
Loans, including fees | $ 27,019,000 | $ 21,297,000 | $ 53,076,000 | $ 41,482,000 |
Securities: | ||||
Taxable | 924,000 | 957,000 | 1,866,000 | 1,912,000 |
Tax-exempt | 1,313,000 | 2,001,000 | 2,646,000 | 3,980,000 |
Dividend income | 499,000 | 364,000 | 573,000 | 584,000 |
Interest-bearing deposits with banks | 261,000 | 192,000 | 510,000 | 336,000 |
Total interest income | 30,016,000 | 24,811,000 | 58,671,000 | 48,294,000 |
INTEREST EXPENSE | ||||
Deposits | 12,547,000 | 6,265,000 | 22,536,000 | 10,423,000 |
Federal Home Loan Bank borrowings | 2,298,000 | 2,915,000 | 6,067,000 | 4,834,000 |
Other borrowings | 833,000 | 719,000 | 1,617,000 | 1,864,000 |
Total interest expense | 15,678,000 | 9,899,000 | 30,220,000 | 17,121,000 |
Net interest income | 14,338,000 | 14,912,000 | 28,451,000 | 31,173,000 |
Provision for credit losses - loans | 713,000 | 372,000 | 1,183,000 | 1,356,000 |
Credit for unfunded lending commitments | (259,000) | 0 | (317,000) | 0 |
Provision for credit losses - securities | 23,000 | 23,000 | ||
Net interest income after provision for credit losses | 13,861,000 | 14,540,000 | 27,562,000 | 29,817,000 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 387,000 | 471,000 | 860,000 | 1,029,000 |
ATM and interchange fees | 585,000 | 586,000 | 1,034,000 | 1,325,000 |
Net unrealized gain on equity securities | 6,000 | 21,000 | 44,000 | 35,000 |
Other than temporary impairment loss on securities | (28,000) | |||
Net gain on sales of loans, Small Business Administration | 951,000 | 907,000 | 1,785,000 | 1,682,000 |
Mortgage banking income | 53,000 | 4,149,000 | 142,000 | 6,645,000 |
Increase in cash surrender value of life insurance | 333,000 | 266,000 | 662,000 | 491,000 |
Commission income | 220,000 | 189,000 | 442,000 | 317,000 |
Real estate lease income | 115,000 | 117,000 | 230,000 | 234,000 |
Net gain on premises and equipment | 120,000 | 29,000 | 120,000 | 29,000 |
Other income | 940,000 | 781,000 | 1,173,000 | 945,000 |
Total noninterest income | 3,710,000 | 7,516,000 | 6,492,000 | 12,704,000 |
NONINTEREST EXPENSE | ||||
Compensation and benefits | 7,589,000 | 10,407,000 | 17,252,000 | 21,092,000 |
Occupancy and equipment | 1,673,000 | 1,920,000 | 3,714,000 | 3,780,000 |
Data processing | 516,000 | 983,000 | 1,309,000 | 1,760,000 |
Advertising | 212,000 | 519,000 | 530,000 | 937,000 |
Professional fees | 501,000 | 778,000 | 1,580,000 | 1,571,000 |
FDIC insurance premiums | 628,000 | 369,000 | 1,114,000 | 677,000 |
Net loss on other real estate owned | 2,000 | 8,000 | ||
Other operating expenses | 657,000 | 3,023,000 | 2,310,000 | 5,693,000 |
Total noninterest expense | 11,778,000 | 17,999,000 | 27,817,000 | 35,510,000 |
Net income before income taxes | 5,793,000 | 4,057,000 | 6,237,000 | 7,011,000 |
Income tax expense | 866,000 | 333,000 | 390,000 | 416,000 |
Net Income | $ 4,927,000 | $ 3,724,000 | $ 5,847,000 | $ 6,595,000 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.72 | $ 0.54 | $ 0.86 | $ 0.96 |
Diluted (in dollars per share) | $ 0.72 | $ 0.54 | $ 0.85 | $ 0.95 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 6,832,130 | 6,842,897 | 6,828,017 | 6,879,805 |
Diluted (in shares) | 6,859,611 | 6,881,496 | 6,849,928 | 6,926,277 |
Dividends per share | $ 0.15 | $ 0.14 | $ 0.29 | $ 0.27 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||||
Net Income | $ 4,927 | $ 3,724 | $ 5,847 | $ 6,595 |
Unrealized gains (losses) on securities available for sale: | ||||
Unrealized holding gains (losses) arising during the period | (4,526) | 6,077 | 15,704 | 16,276 |
Income tax (expense) benefit | 970 | (1,276) | (3,279) | (3,418) |
Net of tax amount | (3,556) | 4,801 | 12,425 | 12,858 |
Less: reclassification adjustment for provision for credit losses on securities included in net income | 23 | 23 | ||
Income tax expense | (5) | (5) | ||
Net of tax amount | 18 | 18 | ||
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 (Loss) | (3,538) | 4,801 | 12,443 | 12,880 |
Comprehensive Income | $ 1,389 | $ 8,525 | $ 18,290 | $ 19,475 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock Cumulative effect, period of adoption, adjusted balance | Common Stock | Additional Paid-in Capital Cumulative effect, period of adoption, adjusted balance | Additional Paid-in Capital | Retained Earnings Cumulative effect period of adoption adjustment member | Retained Earnings Cumulative effect, period of adoption, adjusted balance | Retained Earnings | Accumulated Other Comprehensive Income (Loss) Cumulative effect, period of adoption, adjusted balance | Accumulated Other Comprehensive Income (Loss) | Unearned Stock Compensation Cumulative effect, period of adoption, adjusted balance | Unearned Stock Compensation | Treasury Stock Cumulative effect, period of adoption, adjusted balance | Treasury Stock | Cumulative effect period of adoption adjustment member | Cumulative effect, period of adoption, adjusted balance | Total |
Balances at Sep. 30, 2022 | $ 78 | $ 26,770 | $ 161,927 | $ (27,079) | $ (969) | $ (9,162) | $ 151,565 | |||||||||
Net Income | 6,595 | 6,595 | ||||||||||||||
Other Comprehensive Income (Loss) | 12,880 | 12,880 | ||||||||||||||
Common stock dividends | (1,870) | (1,870) | ||||||||||||||
Restricted stock grants | 495 | (495) | ||||||||||||||
Restricted stock forfeitures | (53) | 53 | ||||||||||||||
Stock compensation expense | 153 | 200 | 353 | |||||||||||||
Purchase of treasury shares | (2,625) | (2,625) | ||||||||||||||
Balances at Mar. 31, 2023 | 78 | 27,365 | 166,652 | (14,199) | (1,211) | (11,787) | 166,898 | |||||||||
Balances at Dec. 31, 2022 | 78 | 27,347 | 163,890 | (19,000) | (1,361) | (10,810) | 160,144 | |||||||||
Net Income | 3,724 | 3,724 | ||||||||||||||
Other Comprehensive Income (Loss) | 4,801 | 4,801 | ||||||||||||||
Common stock dividends | (962) | (962) | ||||||||||||||
Restricted stock forfeitures | (53) | 53 | ||||||||||||||
Stock compensation expense | 71 | 97 | 168 | |||||||||||||
Purchase of treasury shares | (977) | (977) | ||||||||||||||
Balances at Mar. 31, 2023 | 78 | 27,365 | 166,652 | (14,199) | (1,211) | (11,787) | 166,898 | |||||||||
Balances at Sep. 30, 2023 | 78 | 26,986 | 166,306 | (29,587) | (1,015) | (11,787) | 150,981 | |||||||||
Net Income | 5,847 | 5,847 | ||||||||||||||
Other Comprehensive Income (Loss) | 12,443 | 12,443 | ||||||||||||||
Common stock dividends | (1,995) | (1,995) | ||||||||||||||
Restricted stock grants | 294 | (294) | ||||||||||||||
Restricted stock forfeitures | (18) | 18 | ||||||||||||||
Stock compensation expense | 153 | 195 | 348 | |||||||||||||
Purchase of treasury shares | (40) | (40) | ||||||||||||||
Distribution to Q2 minority interest | (18) | (18) | ||||||||||||||
Balances at Mar. 31, 2024 | $ 78 | 78 | $ 26,986 | 27,397 | $ (2,510) | $ 163,796 | 167,648 | $ (29,587) | (17,144) | $ (1,015) | (1,096) | $ (11,787) | (11,827) | $ (2,510) | $ 148,471 | 165,056 |
Balances at Dec. 31, 2023 | 78 | 27,319 | 163,753 | (13,606) | (1,194) | (11,827) | 164,523 | |||||||||
Net Income | 4,927 | 4,927 | ||||||||||||||
Other Comprehensive Income (Loss) | (3,538) | (3,538) | ||||||||||||||
Common stock dividends | (1,032) | (1,032) | ||||||||||||||
Stock compensation expense | 78 | 98 | 176 | |||||||||||||
Balances at Mar. 31, 2024 | $ 78 | $ 78 | $ 26,986 | $ 27,397 | $ (2,510) | $ 163,796 | $ 167,648 | $ (29,587) | $ (17,144) | $ (1,015) | $ (1,096) | $ (11,787) | $ (11,827) | $ (2,510) | $ 148,471 | $ 165,056 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) | |||
Common stock dividends - per share | $ 0.14 | $ 0.29 | $ 0.27 |
Restricted stock grants - shares | 19,475 | 22,000 | |
Restricted stock forfeitures - shares | 2,000 | 800 | 2,000 |
Purchase of treasury shares | 50,000 | 2,636 | 124,710 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | $ 5,847,000 | $ 6,595,000 |
Adjustments to reconcile net income to net cash provided by (used in ) | ||
Provision for credit losses - loans | 1,183,000 | 1,356,000 |
Credit for unfunded lending commitments | (317,000) | 0 |
Provision for credit losses - securities | 23,000 | |
Depreciation and amortization | 1,201,000 | 1,262,000 |
Amortization of premiums and accretion of discounts on securities, net | 145,000 | 351,000 |
Amortization and accretion of fair value adjustments on loans, net | (631,000) | (758,000) |
Loans originated for sale, residential mortgage | (61,979,000) | (192,616,000) |
Loans originated for sale, Small Business Administration | (23,498,000) | (16,779,000) |
Proceeds on sales of loans, residential mortgage | 82,076,000 | 195,499,000 |
Proceeds on sales of loans, Small Business Administration | 30,530,000 | 27,772,000 |
Net realized (gain) loss on sale of residential mortgage loans | 1,368,000 | (466,000) |
Net realized gain on sale of SBA loans | (1,961,000) | (1,223,000) |
Capitalization of loan servicing rights | (1,044,000) | (898,000) |
Proceeds from sale of residential mortgage loan servicing rights | 59,464,000 | |
Loss on sale of residential mortgage loan servicing rights | 4,000 | |
Net change in value of residential loan servicing rights | 809,000 | 2,507,000 |
Net change in value of SBA and nonresidential mortgage loan servicing rights | 558,000 | 539,000 |
Net realized and unrealized gain on other real estate owned | (5,000) | |
Other than temporary impairment loss on securities | 28,000 | |
Increase in cash surrender value of life insurance | (662,000) | (491,000) |
Net gain on equity securities | (44,000) | (35,000) |
Deferred income taxes | (15,382,000) | (1,381,000) |
Stock compensation expense | 348,000 | 353,000 |
Net gain on premises and equipment | (120,000) | (29,000) |
Increase in accrued interest receivable | (713,000) | (1,541,000) |
Increase in accrued interest payable | 2,355,000 | 1,352,000 |
Change in other assets | (1,478,000) | (9,840,000) |
Change in other liabilities | 12,557,000 | 9,646,000 |
Net Cash Provided by Operating Activities | 90,634,000 | 21,203,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investment in interest-bearing time deposits | (490,000) | |
Proceeds from maturities of interest-bearing time deposits | 470,000 | |
Purchase of securities available for sale | (11,273,000) | |
Principal collected and proceeds from maturities of securities available for sale | 4,327,000 | 8,836,000 |
Principal collected and proceeds from maturities of securities held to maturity | 130,000 | 124,000 |
Net increase in loans | (114,196,000) | (124,988,000) |
Proceeds from redemption of Federal Reserve Bank and Federal Home Loan Bank stock | 1,000 | 15,000 |
Purchase of Federal Reserve Bank and Federal Home Loan Bank stock | (48,000) | (3,600,000) |
Proceeds from sale of other real estate | 35,000 | |
Proceeds from sale of premises and equipment | 150,000 | |
Purchase of premises and equipment | (386,000) | (1,623,000) |
Investment in partnership interests | (3,779,000) | (3,441,000) |
Distribution to Q2 minority interests | (18,000) | |
Net Cash Used In Investing Activities | (113,784,000) | (135,970,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 105,652,000 | 27,048,000 |
Net increase (decrease) in Federal Home Loan Bank line of credit | (8,183,000) | 492,000 |
Proceeds from Federal Home Loan Bank advances | 1,310,000,000 | 5,890,000,000 |
Repayment of Federal Home Loan Bank advances | (1,350,000,000) | (5,760,000,000) |
Net decrease in other borrowings | (37,989,000) | |
Net decrease in advance payments by borrowers for taxes and insurance | (160,000) | (114,000) |
Taxes paid on stock award shares for employees | (30,000) | |
Purchase of treasury shares | (40,000) | (2,625,000) |
Dividends paid on common stock | (1,995,000) | (1,870,000) |
Net Cash Provided By Financing Activities | 55,274,000 | 114,912,000 |
Net Increase in Cash and Cash Equivalents | 32,124,000 | 145,000 |
Cash and cash equivalents at beginning of period | 30,845,000 | 41,665,000 |
Cash and Cash Equivalents at End of Period | 62,969,000 | 41,810,000 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest | 27,865,000 | 15,769,000 |
Income taxes (net of refunds received) | $ 6,080,000 | $ (114,000) |
Presentation of Interim Informa
Presentation of Interim Information | 6 Months Ended |
Mar. 31, 2024 | |
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”). 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 Capital, 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. First Savings Insurance Risk Management, Inc. (the “Captive”), which was a wholly-owned insurance subsidiary of the Company, was a Nevada corporation that provided property and casualty insurance to the Company, the Bank and the Bank’s active subsidiaries. In addition, the Captive provided reinsurance to 11 other third-party insurance captives for which insurance may not be currently available or economically feasible in the insurance marketplace.Effective September 30, 2023, the Captive was dissolved and is no longer in existence. During the three-month period ended December 31, 2023, the Bank ceased its national originate-to-sell mortgage banking operation. The Bank continues to originate residential mortgage loans in its local southern Indiana and first-lien home equity lines of credit from its loan production office in Franklin, Tennessee. 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 March 31, 2024, the results of operations for the three- and six-month periods ended March 31, 2024 and 2023, and the cash flows for the six-month periods ended March 31, 2024 and 2023. 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, 2023 included in the Company’s Annual Report on Form 10-K. 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 Credit Losses Loans Held for Investment Loans are stated at unpaid principal balances, less net deferred loan fees and the allowance for credit 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 and is well secured and in process of collection. 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. An ACL is recognized if necessary. Partial charge-offs of loans are included in the Company’s historical loss experience used to estimate the general component of the allowance for credit 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 Credit Losses – Loans As disclosed in Note 11, Recent Accounting Pronouncements, on October 1, 2023, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Therefore, management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the portfolio and does not record an allowance for credit losses on accrued interest receivable. Management considers forward-looking information in estimating expected credit losses. For the contractual term that extends beyond the reasonable and supportable forecast period, the Company reverts to the long term average of historical factors using a straight-line approach. The Company uses a four-quarter forecast with immediate reversion to historical losses. Management estimates the ACL balance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provides the basis for the quantitatively modeled estimates of expected credit losses. The Company adjusts its quantitative model, as necessary, to reflect conditions not already considered by the quantitative model. The adjustments are commonly known as the Qualitative Framework. The ACL model for each segment is adjusted for (1) changes in the Company’s lending policy, (2) changes in international, national, regional and local economic conditions, (3) changes in the nature and volume of the portfolio and terms of loans, (4) changes in the experience, depth and ability of lending management, (5) changes in the volume and severity of past due loans and other similar conditions, (6) changes in the quality of the Company’s loan review system, (7) changes in the value of underlying collateral, (8) the existence and effect of any concentrations of credit and changes in the levels of such concentrations and (9) the effect of other external factors such as competition, legal and regulatory requirements. Changes in forecasted expectations for these variables could result in volatility in the Company’s ACL in future periods. The ACL is measured on a collective (pool) basis when similar risk characteristics exist utilizing a weighted average remaining maturity loss methodology.The ACL utilizes historical charge off rates that were internally calculated as well as peer charge off data. In many cases, the peer data, which showed higher loss rates, was utilized due to representing a better approximation of management’s estimate of the expected losses on the loan segments. For loans evaluated on a pool basis, the Company applies an average historical loss rate to the pool over its estimated remaining life assuming a constant attrition rate. Loans that do not share risk characteristics are evaluated on an individual basis. The Company maintains a net book balance threshold of $500,000 for individually evaluated loans unless further analysis in the future suggests a change is needed to this threshold based on the credit environment at that time. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. If the loan is not collateral dependent, the measurement of loss is based on the difference between the expected and contractual future cash flows of the loan. Management measures expected credit losses over the contractual term of a loan. When determining the contractual term, the Company considers expected prepayments but is precluded from considering expected extensions, renewals or modifications, unless the Company reasonably expects it will execute a loan modification with a borrower. In the event of a reasonably expected loan modification, the Company factors the reasonably-expected loan modification into the current expected credit losses estimate. The Company has identified the following portfolio segments and measures and adjusts the ACL using the following methods: Residential real estate The residential real estate ACL model is adjusted for forecasted changes in the housing price indices at both the national and local level, the Case-Schiller Home Price Index, the national unemployment rate, Consumer Price Index (“CPI”) and Real Gross Domestic Product (“Real GDP”). Commercial real estate, single tenant net lease and multifamily The Company offers multi-family mortgage loans that are generally secured by properties in our primary market area. Multi-family loans are secured by first mortgages and generally are originated with a maximum loan-to-value ratio of 80% and generally require specified debt service coverage ratios depending on the characteristics of the project. The Company offers single tenant net lease loans, which are derived from a commercial real estate lending program that is focused on loans to high net worth individuals and that are secured by low loan-to-value, single-tenant commercial properties that are generally leased to investment grade national-brand retailers, the borrowers and collateral properties for which are outside of our primary market area (“NNN Finance Program”). This program is designed to diversify the Company’s geographic and credit risk profile given the geographic dispersion of the loans and collateral, and the investment grade credit of the national-brand lessees. The terms of the loans are generally consistent with the aforementioned terms of in-market commercial real estate loans; however, these cannot exceed 70% loan-to-value and loan maturities cannot exceed the expiration of the underlying leases. The commercial real estate, single tenant net lease and multi-family ACL models are adjusted for changes in the Commercial Real Estate Price Index, which is a time series of commercial property values prepared by the Board of Governors of the Federal Reserve System, and the national unemployment rate, CPI and Real GDP. SBA commercial real estate and SBA commercial business The SBA commercial real estate ACL model is adjusted for the Commercial Real Estate Price Index. Both the SBA commercial real estate ACL model and the SBA commercial business model are adjusted for the national unemployment rate, CPI and Real GDP. Residential and commercial construction The construction ACL model is adjusted for forecasted changes in the housing price indices, the Case-Schiller Home Price Index, the national unemployment rate, CPI and Real GDP. Land and land development The land and land development ACL model is adjusted for forecasted changes in the housing price indices, the Case-Schiller Home Price Index, the national unemployment rate, CPI and Real GDP. Commercial business The commercial business ACL model is adjusted for changes in the national unemployment level, CPI and Real GDP. Consumer The ACL model for consumer loans is adjusted for forecasted changes in the housing price indices, the Case-Schiller Home Price Index, the national unemployment rate, CPI and Real GDP. Allowance for Unfunded Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their estimated lives consistent with the Company’s ACL methodology for loans and leases. The allowance for unfunded commitments was $1.6 million as of March 31, 2024. There was no ACL on unfunded commitments at September 30, 2023. The Company recorded a credit for credit losses on unfunded commitments of $259,000 and $317,000 for the three- and six-months periods ended March 31, 2024, respectively. There was no provision for credit losses on unfunded commitments for the three- and six-month periods ended March 31, 2023. Allowance for Credit Losses – Held to Maturity (HTM) Securities The Company measures expected credit losses on HTM securities on a collective basis by major security type with each type sharing similar risk characteristics. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company has made the election to exclude accrued interest receivable on HTM securities from the estimate of credit losses and report accrued interest separately on the condensed consolidated balance sheets. See Note 2 – Investment Securities, for additional information related the Company’s allowance for credit losses on HTM securities. Allowance for Credit Losses – Available for Sale (AFS) Securities For AFS securities in an unrealized loss position, the Company first evaluates whether it intends to sell, or whether it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of these criteria regarding intent or requirement to sell is met, the AFS security amortized cost basis is written down to fair value through income. If the criteria is not met, the Company is required to assess whether the decline in fair value has resulted from credit losses of noncredit-related factors. If the assessment indicates a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit loss is recorded through income as a component of provision for credit loss expense. If the assessment indicates that a credit loss does not exist, the Company records the decline in fair value through other comprehensive income, net of related income tax effects. The Company has made the election to exclude accrued interest receivable on AFS securities from the estimate of credit losses and report accrued interest separately on the condensed consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. See Note 2 – Investment Securities, for additional information related to the Company’s allowance for credit losses on AFS securities. Collateral Dependent Loans A loan is considered collateral dependent 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 collateral dependency include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Individually evaluated loans are 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 collateral dependent. 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 a collateral dependent loan. In instances where it is not deemed necessary to obtain a new appraisal, management would base its allowance for credit loss on the original appraisal with adjustments for current conditions based on management’s assessment of market factors and management’s inspection of the property. Financial Difficulty Modifications Effective October 1, 2023, the Company prospectively adopted ASU 2022-02, which eliminated the accounting for troubled debt restructurings (“TDRs”) while establishing a new standard for the disclosure of modifications made to borrowers experiencing financial difficulties (Financial Difficulty Modifications, or “FDMs”). As such, effective with the adoption of the standard, the Company prospectively will not include performing FDMs in the calculation of nonperforming loans, nonperforming assets or classified assets. Prior period data, which included TDRs, has not been adjusted. |
Investment Securities
Investment Securities | 6 Months Ended |
Mar. 31, 2024 | |
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. The Company also holds subordinated debt of a regional financial institution. Investment securities have been classified according to management’s intent. At this time, the Company does not intend to sell, and it is not more likely than not that the Company will be required to sell, debt securities in an unrealized loss position prior to maturity or recovery of the recorded value. The Company recorded $23,000 of reserves on investment securities for the three- and six-month periods ended March 31, 2024. The Company recorded no reserves on investment securities for the three- and six-month periods ended March 31, 2023. The Company’s held to maturity (“HTM”) debt securities consist of two agency mortgage-backed securities and two municipal bonds. The agency mortgage-backed securities carry an explicit and/or implicit guarantee of the U.S. government, are widely considered as “risk free” and have a long history of zero credit loss. The two HTM municipal bonds are unrated, but have performed as agreed and are not considered to be credit impaired. The carrying value of HTM debt securities totaled $1.2 million at March 31, 2024. There were no HTM securities on nonaccrual status or past due as of March 31, 2024 Debt Securities Available for Sale and Held to Maturity The following tables provide a summary of debt securities available for sale and held to maturity: Gross Gross Allowance Amortized Unrealized Unrealized for Credit Fair Cost Gain Losses Losses Value (In thousands) March 31, 2024: Debt securities available for sale: U.S. Treasury notes $ 30,665 $ — $ 3,695 $ — $ 26,970 Agency mortgage-backed 27,726 — 3,212 — 24,514 Agency CMO 13,807 — 1,080 — 12,727 Privately-issued CMO 287 2 1 23 265 Privately-issued ABS 367 13 2 — 378 SBA certificates 11,251 — 428 — 10,823 Municipal bonds 174,612 415 12,932 — 162,095 Other 2,000 — 800 — 1,200 Total debt securities available for sale $ 260,715 $ 430 $ 22,150 $ 23 $ 238,972 Debt securities held to maturity: Agency mortgage-backed $ 32 $ — $ — $ — $ 32 Municipal bonds 1,138 11 — — 1,149 Total debt securities held to maturity $ 1,170 $ 11 $ — $ — $ 1,181 Gross Gross Amortized Unrealized Unrealized Fair Cost Gain Losses Value (In thousands) September 30, 2023: Debt securities available for sale: U.S. Treasury notes $ 30,598 $ — $ 4,649 $ 25,949 Agency mortgage-backed 28,542 — 4,274 24,268 Agency CMO 14,064 — 1,322 12,742 Privately-issued CMO 424 2 30 396 Privately-issued ABS 433 13 3 443 SBA certificates 11,587 — 842 10,745 Municipal bonds 177,561 19 26,096 151,484 Other 2,000 — 288 1,712 Total debt securities available for sale $ 265,209 $ 34 $ 37,504 $ 227,739 Debt securities held to maturity: Agency mortgage-backed $ 36 $ — $ 1 $ 35 Municipal bonds 1,264 4 — 1,268 Total debt securities held to maturity $ 1,300 $ 4 $ 1 $ 1,303 The amortized cost and fair value of investment securities as of March 31, 2024 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 $ 4,401 $ 4,367 $ 254 $ 256 Due after one year through five years 8,262 8,140 606 612 Due after five years through ten years 44,344 39,390 278 281 Due after ten years 150,270 138,368 — — CMO 14,094 12,992 — — ABS 367 378 — — SBA certificates 11,251 10,823 — — Mortgage-backed securities 27,726 24,514 32 32 $ 260,715 $ 238,972 $ 1,170 $ 1,181 The following tables provide the fair value and gross unrealized losses on investment securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position: Number of Gross Investment Fair Unrealized Positions Value Losses (Dollars in thousands) March 31, 2024: Debt securities available for sale: Continuous loss position less than twelve months: U.S. Treasury notes 5 $ 1,611 $ 26 Agency mortgage-backed 1 55 2 Municipal bonds 16 17,881 115 Other 1 1,200 800 Total less than twelve months 23 20,747 943 Continuous loss position more than twelve months: U.S. Treasury notes 1 25,359 3,669 Agency mortgage-backed 14 24,105 3,210 Agency CMO 15 12,728 1,080 Privately-issued CMO 1 244 1 Privately-issued ABS 1 165 2 SBA certificates 3 10,822 428 Municipal bonds 118 107,395 12,817 Total more than twelve months 153 180,818 21,207 Total debt securities available for sale 176 $ 201,565 $ 22,150 At March 31, 2024, the Company did not have any securities held to maturity with an unrealized loss. Number of Gross Investment Fair Unrealized Positions Value Losses (Dollars in thousands) September 30, 2023: Debt securities available for sale: Continuous loss position less than twelve months: U.S. Treasury notes 5 $ 1,576 $ 49 Agency mortgage-backed 2 163 8 Agency CMO 1 4,249 462 SBA certificates 1 31 3 Municipal bonds 43 45,931 3,334 Other 1 1,712 288 Total less than twelve months 53 53,662 4,144 Continuous loss position more than twelve months: U.S. Treasury notes 1 24,373 4,600 Agency mortgage-backed 15 23,859 4,266 Agency CMO 14 8,493 860 Privately-issued CMO 2 375 30 Privately-issued ABS 1 212 3 SBA certificates 2 10,714 839 Municipal bonds 115 95,185 22,762 Total more than twelve months 150 163,211 33,360 Total debt securities available for sale 203 $ 216,873 $ 37,504 Debt securities held to maturity: Continuous loss position more than twelve months: Agency mortgage-backed 1 $ 19 $ 1 Total more than twelve months 1 19 1 Total debt securities held to maturity 1 $ 19 $ 1 All debt securities available for sale with unrealized losses are reviewed quarterly. For debt securities available for sale in an unrealized loss position, the Company first assesses whether it intends to sell or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the income statement. For debt securities available for sale in an unrealized loss position that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit deterioration or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. The total debt securities available for sale in loss positions at March 31, 2024, which consisted of U.S. Treasury notes, agency mortgage-backed securities, agency CMOs, privately-issued CMOs, privately-issued ABS, municipal bonds, SBA certificates and other securities represented 84% of total debt securities available for sale at March 31, 2024. All of the municipal securities are issued by municipal governments and are generally secured by first mortgage loans and municipal project revenues. The Company evaluates the existence of a potential credit loss component related to the decline in fair value of the privately issued CMO and ABS portfolios each quarter using an independent third party analysis. At March 31, 2024, the Company held five privately-issued CMO and ABS securities, acquired in a 2009 bank merger, with an aggregate amortized cost of $508,000 and fair value of $488,000 that have been downgraded to a substandard regulatory classification due to the securities credit quality rating by various rating agencies. At March 31, 2024, two privately-issued CMO securities and one privately-issued ABS were in a loss position, and had depreciated approximately 5.8% from the Company’s carrying value and were collateralized by residential mortgage loans. These securities had a total fair value of $409,000 and a total unrealized loss of $25,000 at March 31, 2024. Based on the independent third party analysis of the expected cash flows, two securities had a credit loss totaling $23,000 that was recorded through provision for credit losses on securities during the three- and six-month periods ended March 31, 2024. No other-than temporary impairment was recognized during the three months ended March 31, 2023. An other-than temporary impairment charge of $28,000 was recognized in the six months ended March 31, 2023, which was prior to the Company’s adoption of CECL. While the Company does not anticipate additional credit-related impairment losses at March 31, 2024, 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 changes in 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. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of its amortized cost bases, which may be maturity, the Company has not recorded an allowance for credit losses at March 31, 2024. During the three-and six-month periods ended March 31, 2024 and 2023, there were no sales of debt securities available for sale. At March 31, 2024 and September 30, 2023, available for sale debt securities with a total fair value of $53.8 million and $52.9 million, respectively, were pledged to secure FHLB borrowings. At March 31, 2024, available for sale debt securities with a total fair value of $61.6 million were pledged to secure Federal Reserve Discount Window borrowings. At September 30, 2023, there were no available for sale debt securities pledged to secure Federal Reserve Discount Window borrowings. The following table provides information about the activity for available for sale debt securities for which an allowance for credit losses was recorded, by major security type for the three- and six-month periods ended March 31, 2024. Allowance for Credit Losses Private Label CMO Three-Months Six-Months Ended Ended March 31, 2024 March 31, 2024 Allowance for credit losses Beginning of year, October 1, 2023 $ — $ — Provision for credit loss expense 24 24 Reductions due to increases in expected cash flows (1) (1) Recoveries — — Balance at end of period $ 23 $ 23 |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 6 Months Ended |
Mar. 31, 2024 | |
Loans and Allowance for Credit Losses | |
Loans and Allowance for Credit Losses | 3. Loans and Allowance for Credit Losses Loans at March 31, 2024 and September 30, 2023 consisted of the following: March 31, September 30, 2024 2023 (In thousands) Real estate mortgage: Residential $ 609,182 $ 528,410 Commercial 183,522 187,232 Single tenant net lease 751,357 757,388 SBA commercial (1) 47,008 47,078 Multifamily 39,944 34,892 Residential construction 52,166 24,924 Commercial construction 20,978 14,588 Land and land development 15,573 17,234 Commercial business 124,153 117,594 SBA commercial business (1) 18,568 16,939 Consumer 38,467 39,915 Total loans 1,900,918 1,786,194 Deferred loan origination fees and costs, net 932 949 Allowance for credit losses (19,392) (16,900) Loans, net $ 1,882,458 $ 1,770,243 (1) Includes discounts on SBA loans of $3.4 million and $3.3 million for March 31, 2024 and September 30, 2023, respectively. During the six-month period ended March 31, 2024, there were no significant changes in the Company’s lending activities as disclosed in the Company’s Annual Report on Form 10-K, for the fiscal year ended September 30, 2023. As discussed in Note 11, on October 1, 2023, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments At March 31, 2024 and September 30, 2023, the Company owned $444,000 of residential real estate where physical possession has been obtained. At March 31, 2024 and September 30, 2023, the recorded investment in consumer mortgage loans collateralized by residential real estate properties in the process of foreclosure was $539,000. The following table provides the components of loans as of September 30, 2023, prior to the adoption of ASU 2016-13 ( in thousands Individually Collectively Evaluated for Evaluated for Loans as Evaluated for Impairment: Impairment Impairment Loans Residential real estate $ 3,312 $ 525,098 $ 528,410 Commercial real estate 868 186,364 187,232 Single tenant net lease — 757,388 757,388 SBA commercial real estate 7,415 39,663 47,078 Multifamily 318 34,574 34,892 Residential construction — 24,924 24,924 Commercial construction — 14,588 14,588 Land and land development — 17,234 17,234 Commercial business 1,946 115,648 117,594 SBA commercial business 1,122 15,817 16,939 Consumer 233 39,682 39,915 $ 15,214 $ 1,770,980 $ 1,786,194 The following table presents the balance in the allowance for credit losses by portfolio segment and based on impairment method as of September 30, 2023: Individually Collectively Evaluated for Evaluated for Ending Impairment Impairment Balance (In thousands) September 30, 2023: Residential real estate $ 74 $ 4,567 $ 4,641 Commercial real estate 2 1,775 1,777 Single tenant net lease — 3,810 3,810 SBA commercial real estate — 1,922 1,922 Multifamily — 268 268 Residential construction — 434 434 Commercial construction — 282 282 Land and land development — 307 307 Commercial business 111 1,603 1,714 SBA commercial business 187 1,060 1,247 Consumer 189 309 498 $ 563 $ 16,337 $ 16,900 The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2024 and 2023: Beginning Balance Provisions (Credits) Charge-Offs Recoveries Ending Balance March 31, 2024: (In thousands) Residential real estate $ 5,688 $ 686 $ — $ 7 $ 6,381 Commercial real estate 1,797 (152) — — 1,645 Single tenant net lease 4,080 (316) — — 3,764 SBA commercial real estate 2,871 — — 1 2,872 Multifamily 321 89 — — 410 Residential construction 304 47 — — 351 Commercial construction 384 47 — — 431 Land and land development 197 (23) — — 174 Commercial business 1,222 288 (26) — 1,484 SBA commercial business 1,499 (49) (21) 5 1,434 Consumer 426 96 (101) 25 446 $ 18,789 $ 713 $ (148) $ 38 $ 19,392 March 31, 2023: Residential real estate $ 3,100 $ 424 $ — $ 13 $ 3,537 Commercial real estate 1,751 32 — — 1,783 Single tenant net lease 3,804 (78) — — 3,726 SBA commercial real estate 2,398 212 (3) — 2,607 Multifamily 252 74 — — 326 Residential construction 367 (121) — — 246 Commercial construction 83 — — — 83 Land and land development 200 (2) — — 198 Commercial business 1,255 37 — 30 1,322 SBA commercial business 2,338 (262) — 12 2,088 Consumer 532 56 (56) 10 542 $ 16,080 $ 372 $ (59) $ 65 $ 16,458 The following table presents the activity in the allowance for credit losses by portfolio segment for the six months ended March 31, 2024 and 2023: Beginning Balance Adoption of ASC 326 Provisions (Credits) Charge-Offs Recoveries Ending Balance (In thousands) March 31, 2024: Residential real estate $ 4,641 $ 1,037 $ 695 $ — $ 8 $ 6,381 Commercial real estate 1,777 255 (387) — — 1,645 Single tenant net lease 3,810 222 (268) — — 3,764 SBA commercial real estate 1,922 511 379 (2) 62 2,872 Multifamily 268 (21) 163 — — 410 Residential construction 434 (226) 143 — — 351 Commercial construction 282 43 106 — — 431 Land and land development 307 (74) (59) — — 174 Commercial business 1,714 (495) 291 (26) — 1,484 SBA commercial business 1,247 160 23 (24) 28 1,434 Consumer 498 17 97 (209) 43 446 $ 16,900 $ 1,429 $ 1,183 $ (261) $ 141 $ 19,392 March 31, 2023: Residential real estate $ 2,716 $ — $ 806 $ — $ 15 $ 3,537 Commercial real estate 1,590 — 193 — — 1,783 Single tenant net lease 3,838 — (112) — — 3,726 SBA commercial real estate 2,578 — 106 (77) — 2,607 Multifamily 251 — 75 — — 326 Residential construction 305 — (59) — — 246 Commercial construction 107 — (24) — — 83 Land and land development 212 — (14) — — 198 Commercial business 1,193 — 69 — 60 1,322 SBA commercial business 2,122 — 128 (190) 28 2,088 Consumer 448 — 188 (121) 27 542 $ 15,360 $ — $ 1,356 $ (388) $ 130 $ 16,458 The following table presents the average balance of impaired loans individually evaluated for impairment as of March 31, 2023, prior to the Company’s adoption of ASU 2016-13 and interest income recognized on impaired loans for the three- and six-month periods ended March 31, 2023. The Company did not recognize any interest income on impaired loans using the cash receipts method during the three- and six-month periods ended March 31, 2023. Three Months Ended March 31, Six Months Ended March 31, 2023 2023 Average Interest Average Interest Recorded Income Recorded Income Balance Recognized Balance Recognized Loans with no related allowance recorded: Residential real estate $ 3,591 $ 30 $ 3,236 $ 30 Commercial real estate 969 13 973 13 Single tenant net lease — — — — SBA commercial real estate 7,822 — 7,199 — Multifamily 384 10 389 10 Residential construction — — — — Commercial construction — — — — Land and land development — — — — Commercial business 895 24 993 24 SBA commercial business 954 — 813 — Consumer 72 — 75 — $ 14,687 $ 77 $ 13,678 $ 77 Loans with an allowance recorded: Residential real estate $ — $ — $ — $ — Commercial real estate — — — — Single tenant net lease — — — — SBA commercial real estate 1,022 — 1,596 — Multifamily — — — — Residential construction — — — — Commercial construction — — — — Land and land development — — — — Commercial business 135 — 90 — SBA commercial business 1,229 — 1,259 — Consumer 223 — 197 — $ 2,609 $ — $ 3,142 $ — Total: Residential real estate $ 3,591 $ 30 $ 3,236 $ 30 Commercial real estate 969 13 973 13 Single tenant net lease — — — — SBA commercial real estate 8,844 — 8,795 — Multifamily 384 10 389 10 Residential construction — — — — Commercial construction — — — — Land and land development — — — — Commercial business 1,030 24 1,083 24 SBA commercial business 2,183 — 2,072 — Consumer 295 — 272 — $ 17,296 $ 77 $ 16,820 $ 77 The following table presents impaired loans individually evaluated for impairment as of September 30, 2023, prior to the adoption of ASU 2016-13. Unpaid Recorded Principal Related Balance Balance Allowance (In thousands) Loans with no related allowance recorded: Residential real estate $ 1,989 $ 2,139 $ — Commercial real estate 551 627 — Single tenant net lease — — — SBA commercial real estate 7,415 9,397 — Multifamily 318 362 — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 870 972 — SBA commercial business 684 1,799 — Consumer 44 58 — $ 11,871 $ 15,354 $ — Loans with an allowance recorded: Residential real estate $ 1,323 $ 1,328 $ 74 Commercial real estate 317 317 2 Single tenant net lease — — — SBA commercial real estate — — — Multifamily — — — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 1,076 1,165 111 SBA commercial business 438 637 187 Consumer 189 189 189 $ 3,343 $ 3,636 $ 563 Total: Residential real estate $ 3,312 $ 3,467 $ 74 Commercial real estate 868 944 2 Single tenant net lease — — — SBA commercial real estate 7,415 9,397 — Multifamily 318 362 — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 1,946 2,137 111 SBA commercial business 1,122 2,436 187 Consumer 233 247 189 $ 15,214 $ 18,990 $ 563 The table below presents the amortized cost basis of loans on nonaccrual and loans past due 90 or more days and still accruing interest. Also presented is the balance of loans on nonaccrual status at March 31, 2024 for which there was no related allowance for credit losses. The Company recognized no interest income related to nonaccrual loans for the three - and six - month periods ended March 31, 2024. At March 31, 2024 At September 30, 2023 Nonaccrual Loans 90+ Loans 90+ Total Loans with No Days Total Days Nonaccrual Allowance for Past Due Nonaccrual Past Due Loans Credit Loses Still Accruing Loans Still Accruing (In thousands) (In thousands) Residential real estate $ 2,960 $ 1,803 $ — $ 2,426 $ — Commercial real estate 496 496 — 511 — Single tenant net lease — — — — — SBA commercial real estate 8,110 6,025 — 7,415 — Multifamily 290 290 — 318 — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business 1,649 1,470 — 1,946 — SBA commercial business 2,121 1,241 — 1,099 — Consumer 12 12 — 233 — Total $ 15,638 $ 11,337 $ — $ 13,948 $ — The following table presents the amortized cost basis of collateral dependent loans by collateral type, which are individually evaluated to determine expected credit losses. Other collateral represents business assets, except for the case of consumer loans, which are collateralized by consumer non-real estate assets: March 31, 2024 Real Estate Other Total (In thousands) Residential real estate $ 2,960 $ — $ 2,960 Commercial real estate 496 — 496 SBA commercial real estate 8,110 — 8,110 Multifamily 290 — 290 Commercial business — 1,649 1,649 SBA commercial business — 2,121 2,121 Consumer — 12 12 $ 11,856 $ 3,782 $ 15,638 The following table presents the aging of past due loans at March 31, 2024: 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 $ 2,764 $ 1,398 $ 2,304 $ 6,466 $ 602,716 $ 609,182 Commercial real estate 254 — 496 750 182,772 183,522 Single tenant net lease — — — — 751,357 751,357 SBA commercial real estate 359 49 4,422 4,830 42,178 47,008 Multifamily — — — — 39,944 39,944 Residential construction — — — — 52,166 52,166 Commercial construction — — — — 20,978 20,978 Land and land development 63 — — 63 15,510 15,573 Commercial business 14 — 37 51 124,102 124,153 SBA commercial business 213 — 718 931 17,637 18,568 Consumer 190 3 12 205 38,262 38,467 Total $ 3,857 $ 1,450 $ 7,989 $ 13,296 $ 1,887,622 $ 1,900,918 The following table presents the aging of past due loans at September 30, 2023: ar 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 $ 2,715 $ 132 $ 1,818 $ 4,665 $ 523,745 $ 528,410 Commercial real estate 23 62 — 85 187,147 187,232 Single tenant net lease — — — — 757,388 757,388 SBA commercial real estate 764 — 3,877 4,641 42,437 47,078 Multifamily — — — — 34,892 34,892 Residential construction — — — — 24,924 24,924 Commercial construction — — — — 14,588 14,588 Land and land development 40 — — 40 17,194 17,234 Commercial business 112 — 86 198 117,396 117,594 SBA commercial business 130 — 682 812 16,127 16,939 Consumer 137 5 36 178 39,737 39,915 Total $ 3,921 $ 199 $ 6,499 $ 10,619 $ 1,775,575 $ 1,786,194 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: Pass: Special Mention: Substandard: Doubtful: Loss: The following tables outline, as of March 31, 2024, the amount of each loan and lease classification and the amount categorized into each risk rating based on fiscal year of origination as well as current period gross charge-offs: Loans Amortized Cost Basis by Origination Fiscal Year End September 30, Revolving Loans Revolving Converted (In thousands) 2024 2023 2022 2021 2020 Prior Loans To Term Total Residential real estate Pass $ 54,231 $ 35,267 $ 46,873 $ 19,671 $ 11,787 $ 58,071 $ 382,113 $ — $ 608,013 Special mention — — — — — — — — — Substandard — 111 — 278 — 455 306 — 1,150 Doubtful — — — — — 19 — — 19 Loss — — — — — — — — — Total residential real estate 54,231 35,378 46,873 19,949 11,787 58,545 382,419 — 609,182 YTD gross charge-offs — — — — — — — — — Commercial real estate Pass 6,652 26,464 64,255 22,853 8,146 54,460 — — $ 182,830 Special mention — — — — — — — — — Substandard — 496 — — 23 173 — — 692 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate 6,652 26,960 64,255 22,853 8,169 54,633 — — 183,522 YTD gross charge-offs — — — — — — — — — Single tenant net lease commercial real estate Pass 18,655 151,778 277,141 72,168 101,196 130,419 — — 751,357 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total single tenant net lease 18,655 151,778 277,141 72,168 101,196 130,419 — — 751,357 YTD gross charge-offs — — — — — — — — — SBA commercial real estate Pass 2,944 8,319 5,418 5,786 7,381 6,757 37 — 36,642 Special mention — — 229 — — — — — 229 Substandard — — 162 143 1,776 6,371 — — 8,452 Doubtful — — — — — 1,624 — — 1,624 Loss — — — — — 61 — — 61 Total SBA commercial real estate 2,944 8,319 5,809 5,929 9,157 14,813 37 — 47,008 YTD gross charge-offs — — — — — 2 — — 2 Loans Amortized Cost Basis by Origination Fiscal Year End September 30, Revolving Loans Revolving Converted (In thousands) 2024 2023 2022 2021 2020 Prior Loans To Term Total Multifamily real estate Pass 5,000 2,610 7,534 5,524 11,956 7,030 — — 39,654 Special mention — — — — — — — — — Substandard — — — — — 290 — — 290 Doubtful — — — — — — — — — Loss — — — — — — — — — Total multifamily real estate 5,000 2,610 7,534 5,524 11,956 7,320 — — 39,944 YTD gross charge-offs — — — — — — — — — Residential construction Pass 4,038 26,616 21,512 — — — — — 52,166 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total residential construction 4,038 26,616 21,512 — — — — — 52,166 YTD gross charge-offs — — — — — — — — — Commercial construction Pass — 16,789 4,189 — — — — — 20,978 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial construction — 16,789 4,189 — — — — — 20,978 YTD gross charge-offs — — — — — — — — — Land and land development Pass 432 7,083 5,410 1,074 401 1,173 — — 15,573 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total land and land development 432 7,083 5,410 1,074 401 1,173 — — 15,573 YTD gross charge-offs — — — — — — — — — Loans Amortized Cost Basis by Origination Fiscal Year End September 30, Revolving Loans Revolving Converted (In thousands) 2024 2023 2022 2021 2020 Prior Loans To Term Total Commercial business Pass 17,910 56,408 28,562 12,245 902 6,477 — — 122,504 Special mention — — — — — — — — — Substandard — 999 179 44 4 423 — — 1,649 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial business 17,910 57,407 28,741 12,289 906 6,900 — — 124,153 YTD gross charge-offs — — — 26 — — — — 26 SBA commercial business Pass 3,589 2,625 732 1,225 4,219 3,610 375 — 16,375 Special mention — — — — — — — — — Substandard — — — 60 53 2,050 — — 2,163 Doubtful — — — — — 9 — — 9 Loss — — — — — 21 — — 21 Total SBA commercial business 3,589 2,625 732 1,285 4,272 5,690 375 — 18,568 YTD gross charge-offs — — — — — 24 — — 24 Consumer Pass 2,652 4,746 3,764 554 306 176 26,257 — 38,455 Special mention — — — — — — — — — Substandard — 5 — — — — 7 — 12 Doubtful — — — — — — — — — Loss — — — — — — — — — Total consumer 2,652 4,751 3,764 554 306 176 26,264 — 38,467 YTD gross charge-offs — — — 1 — 208 — — 209 Total loans Pass 116,103 338,705 465,390 141,100 146,294 268,173 408,782 — 1,884,547 Special mention — — 229 — — — — — 229 Substandard — 1,611 341 525 1,856 9,762 313 — 14,408 Doubtful — — — — — 1,652 — — 1,652 Loss — — — — — 82 — — 82 Total loans 116,103 340,316 465,960 141,625 148,150 279,669 409,095 — 1,900,918 YTD gross charge-offs — — — 27 — 234 — — 261 The following table presents loans by risk category as of September 30, 2023: Special September 30, 2023: Pass Mention Substandard Doubtful Loss Total (In thousands) Residential real estate $ 525,735 $ — $ 2,653 $ 22 $ — $ 528,410 Commercial real estate 186,520 — 712 — — 187,232 Single tenant net lease 757,388 — — — — 757,388 SBA commercial real estate 39,092 278 6,083 1,625 — 47,078 Multifamily 34,574 — 318 — — 34,892 Residential construction 24,924 — — — — 24,924 Commercial construction 14,588 — — — — 14,588 Land and land development 17,234 — — — — 17,234 Commercial business 115,647 40 1,907 — — 117,594 SBA commercial business 14,572 — 2,327 40 — 16,939 Consumer 39,871 — 44 — — 39,915 Total $ 1,770,145 $ 318 $ 14,044 $ 1,687 $ — $ 1,786,194 Financial Difficulty Modifications Effective October 1, 2023, the Company prospectively adopted ASU 2022-02, which eliminated the accounting for TDRs while establishing a new standard for the treatment of modifications made to borrowers experiencing financial difficulties (Financial Difficulty Modifications, or “FDMs”). As such, effective with the adoption of the standard, the Company prospectively will not include FDMs in the calculation of nonperforming loans, nonperforming assets or classified assets. Prior period data, which included TDRs, has not been adjusted. An FDM may result when a borrower is in financial distress and may be in the form of principal forgiveness, an interest rate reduction, a term extension or a significant payment delay. In some cases, the Company may provide multiple types of modifications for a single loan. One type of modification, such as payment delay, may be granted initially. However, if the borrower continues to experience financial difficulty, another modification, such as term extension and/or interest rate reduction may be granted. Additionally, modifications with a term extension or interest rate reduction are intended to reduce the borrower’s monthly payment, while modifications with a payment delay, which typically allow borrowers to make monthly payments or interest only payments for a period of time, are structured to cure the payment defaults by making delinquent payments due at maturity. Payment deferrals up to six months have minimal financial impact since the deferred payments are paid at maturity. There were no new FDMs made or modifications of existing FDMs during the three-and six-months ended March 31, 2024. The following table summarizes the Company’s recorded investment in TDRs at March 31, 2023, prior to adoption of ASU 2022-02. There was $111,000 of specific reserve included in the allowance for loan losses related to TDRs at March 31, 2023. Accruing Nonaccrual Total (In thousands) March 31, 2023: Residential real estate $ 997 $ — $ 997 Commercial real estate 373 542 915 SBA commercial real estate — 1,623 1,623 Multifamily 335 — 335 Commercial business 741 — 741 SBA commercial business — 248 248 Total $ 2,446 $ 2,413 $ 4,859 There were no TDRs that were restructured during the three-and six-month periods ended March 31, 2023. At March 31, 2023, the Company had committed to lend $1,000 to customers with outstanding loans classified as TDRs. There were principal charge - offs totaling $3,000 and $6,000 as a result of loans previously designated as TDRs during the three- and six-month periods ended March 31, 2023, respectively. 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- and six-month periods ended March 31, 2023, 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 typically 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 $217.6 million, $209.6 million and $238.4 million at March 31, 2024, September 30, 2023 and March 31, 2023, respectively. Contractually specified late fees and ancillary fees expensed on SBA loans were for the six-months ended March 31, 2024. Contractually specified late fees and ancillary fees expensed on SBA loans were for the three- and six-month periods ended March 31, 2023, respectively. Net servicing income (contractually specified servicing fees offset by direct servicing expenses) related to SBA loans was for the three- and six-month periods ended March 31, 2024, respectively. Net servicing income (contractually specified servicing fees offset by direct servicing expenses) related to SBA loans was million for the three- and six-month periods ended March 31, 2023, 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-and six-month periods ended March 31, 2024 and 2023 is as follows: Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 (In thousands) Balance, beginning of period $ 2,907 $ 3,301 $ 2,950 $ 3,790 Servicing rights capitalized 278 261 535 459 Amortization (137) (195) (280) (390) Direct write-offs (98) (170) (315) (311) Change in valuation allowance — 530 60 179 Balance, end of period $ 2,950 $ 3,727 $ 2,950 $ 3,727 There was no valuation allowance related to SBA loan servicing rights at March 31, 2024. There was a valuation allowance of $60,000 related to SBA loan servicing rights at September 30, 2023. 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. At September 30, 2023, the Company had entered into a letter of intent to sell substantially all of the Company’s residential MSRs, which closed on November 30, 2023. Additionally, the Company sold the remaining residential MSRs during the quarter ended March 31, 2024. Due to the pending residential MSR sales, a valuation model was not used to calculate the fair value of residential MSRs September 30, 2023. The fair value was estimated using known information, including the anticipated sale prices, estimated expenses, and contingencies related to the pending residential MSR sales, which represent Level 3 fair value inputs. Prior to September 30, 2023, a valuation model employed by an independent third party calculated the present value of future cash flows and was used to value the MSRs on a monthly basis. Management periodically compared the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Range of Inputs (Weighted Average) Assumption September 30, 2023 Discount rate 9.44% - 14.50% (9.51%) Prepayment rate 5.00% - 85.82% (6.82%) The unpaid principal balance of residential mortgage loans serviced for others was $4.77 billion at September 30, 2023. There was no unpaid principal balance of residential mortgage loans serviced for others at March 31, 2024 due to the sale of all of the Company’s residential MSRs during the six-month period ended March 31, 2024, which also resulted in the elimination of custodial escrow balances. Custodial escrow balances maintained in connection with the foregoing loan servicing and other liabilities were $47.9 million at September 30, 2023. There were no custod |
Deposits
Deposits | 6 Months Ended |
Mar. 31, 2024 | |
Deposits | |
Deposits | 4. Deposits Deposits at March 31, 2024 and September 30, 2023 consisted of the following: March 31, September 30, 2024 2023 (In thousands) Noninterest-bearing demand deposits $ 196,239 $ 242,237 NOW accounts 312,394 336,446 Money market accounts 337,939 323,739 Savings accounts 160,668 170,073 Retail time deposits 232,031 170,980 Brokered & reciprocal time deposits 548,175 438,319 Total $ 1,787,446 $ 1,681,794 |
Supplemental Disclosure for Net
Supplemental Disclosure for Net Income Per Share | 6 Months Ended |
Mar. 31, 2024 | |
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-and six-month periods ended March 31, 2024 and 2023. Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 (Dollars in thousands, except per share data) Basic: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 4,927 $ 3,724 $ 5,847 $ 6,595 Shares: Weighted average common shares outstanding, basic 6,832,130 6,842,897 6,828,017 6,879,805 Net income per common share, basic $ 0.72 $ 0.54 $ 0.86 $ 0.96 Diluted: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 4,927 $ 3,724 $ 5,847 $ 6,595 Shares: Weighted average common shares outstanding, basic 6,832,130 6,842,897 6,828,017 6,879,805 Add: Dilutive effect of outstanding options 27,481 38,599 21,911 46,472 Add: Dilutive effect of restricted stock — — — — Weighted average common shares outstanding, as adjusted 6,859,611 6,881,496 6,849,928 6,926,277 Net income per common share, diluted $ 0.72 $ 0.54 $ 0.85 $ 0.95 Nonvested restricted stock shares are not considered as outstanding for purposes of computing weighted average common shares outstanding. Stock options for 341,572 shares of common stock were excluded from the calculation of diluted net income per common share for the three - and six - month periods ended March 31, 2024, because their effect was antidilutive. Stock options for 273,489 and 269,889 shares of common stock were excluded from the calculation of diluted net income per common share for the three-and six-month periods ended March 31, 2023, 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-and six-month periods ended March 31, 2024 and 2023. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | 6 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | 6. 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 March 31, 2024 and September 30, 2023. Carrying Value Level 1 Level 2 Level 3 Total (In thousands) March 31, 2024: Assets Measured – Recurring Basis: Securities available for sale: U.S. Treasury bills and notes $ 26,970 $ — $ — $ 26,970 Agency mortgage-backed — 24,514 — 24,514 Agency CMO — 12,727 — 12,727 Privately-issued CMO — 20 245 265 Privately-issued ABS — 299 79 378 SBA certificates — 10,793 30 10,823 Municipal bonds — 162,095 — 162,095 Other — — 1,200 1,200 Total securities available for sale $ 26,970 $ 210,448 $ 1,554 $ 238,972 Residential mortgage loans held for sale $ — $ 2,979 $ — $ 2,979 Equity securities (included in other assets) $ 204 $ — $ — $ 204 Assets Measured – Nonrecurring Basis: Collateral dependent loans: Residential real estate $ — $ — $ 793 $ 793 SBA commercial real estate — — 1,480 1,480 Commercial business — — 137 137 SBA commercial business — — 432 432 Total collateral dependent loans $ — $ — $ 2,842 $ 2,842 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) September 30, 2023: Assets Measured – Recurring Basis Securities available for sale: U.S. Treasury notes $ 25,949 $ — $ — $ 25,949 Agency mortgage-backed — 24,268 — 24,268 Agency CMO — 12,742 — 12,742 Privately-issued CMO — 46 350 396 Privately-issued ABS — 364 79 443 SBA certificates — 10,714 31 10,745 Municipal bonds — 151,484 — 151,484 Other — 1,712 — 1,712 Total securities available for sale $ 25,949 $ 201,330 $ 460 $ 227,739 Residential mortgage loans held for sale $ — $ 24,692 $ — $ 24,692 Derivative assets (included in other assets) $ — $ 471 $ 452 $ 923 Equity securities (included in other assets) $ 160 $ — $ — $ 160 Residential mortgage servicing rights $ — $ — $ 59,768 $ 59,768 Liabilities Measured – Recurring Basis Derivative liabilities (included in other liabilities) $ — $ 12 $ 184 $ 196 Assets Measured – Nonrecurring Basis Collateral dependent loans: Residential real estate $ — $ — $ 306 $ 306 Commercial business — — 965 965 SBA commercial business — — 237 237 Total collateral dependent loans $ — $ — $ 1,508 $ 1,508 SBA loan servicing rights $ — $ — $ 2,950 $ 2,950 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 six-month period ended March 31, 2024. Debt Securities Available for Sale and Equity Securities. Residential Mortgage 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. Due to the Company’s decision to wind down the national Mortgage Banking operation, and the resulting low level of mortgage loan originations and sales, there were no interest rate lock commitments or forward mortgage loan sale commitments as of March 31, 2024. 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 - and six - month periods ended March 31, 2024 and 2023: Three Months Ended Six Months Ended March 31, March 31, (In thousands) 2024 2023 2024 2023 Beginning balance $ — $ 362 $ 268 $ (238) Unrealized gains (losses) recognized in earnings, net of settlements — 986 (268) 1,586 Ending balance $ — $ 1,348 $ — $ 1,348 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. There were no unrealized gains recognized in earnings for the six - month period ended March 31, 2024 attributable to Level 3 derivative assets and liabilities held at the balance sheet date.Unrealized gains recognized in earnings for the six - month period ended March 31, 2023 attributable to Level 3 derivative assets and liabilities held at the balance sheet date were $1.3 million. There were no interest rate lock commitments as of March 31, 2024. The table below presents information about significant unobservable inputs (Level 3) used in the valuation of derivative financial instruments measured at fair value on a recurring basis as of September 30,2023. Range of Inputs Significant (Weighted Average) Unobservable September 30, Financial Instrument Inputs 2023 Interest rate lock commitments Pull-through rate 54% - 95% (81%) Direct costs to close 0.00% - 5.00% (0.62%) Residential Mortgage Servicing Rights . Collateral Dependent Loans Collateral may be real estate and/or business assets, including equipment, inventory and/or accounts receivable, and its fair value is generally determined based on real estate appraisals or other independent evaluations by qualified professionals. The appraisals are then discounted to reflect management’s estimate of the fair value of the collateral given the current market conditions and the condition of the collateral. At March 31, 2024 and September 30, 2023, the significant unobservable inputs used in the fair value measurement of collateral dependent loans were as follows: Range of Inputs Significant (Weighted Average) Range of Inputs (Weighted Unobservable March 31, Average) September 30, Financial Instrument Inputs 2024 2023 Collateral dependent loans Discount from appraised value 10.0% - 50.0% (15.49%) 10.0% - 50.0% (14.22%) Estimated costs to sell 6.0% - 6.0% (6.00%) 6.0% - 6.0% (6.00%) During the three- and six-month periods ended March 31, 2024, the Company recognized provisions for credit losses on individually evaluated loans of $403,000 and $1.0 million, respectively. During the three- and six-month periods ended March 31, 2023, the Company recognized provisions for credit losses on impaired loans of $364,000 and $564,000, respectively. SBA and Nonresidential Loan Servicing Rights Significant Range of Inputs (Weighted Unobservable Average) September 30, Financial Instrument Inputs 2023 SBA loan servicing rights Discount rate 10.25% - 25.00% (13.79%) Prepayment speed 8.60% - 32.85% (16.91%) Impairment of the SBA loan servicing rights is recognized on a quarterly basis through a valuation allowance to the extent that fair value is less than the carrying amount. The Company did not record any impairment charges on SBA loan servicing rights for the three-month period ended March 31, 2024. The Company reversed impairment charges of $60,000 on SBA loan servicing rights for the six-month period ended March 31, 2024. The Company reversed impairment charges of $530,000 and $179,000 on SBA loan servicing rights for the three – and six - month periods ended March 31, 2023, respectively. 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 March 31, 2024 and September 30, 2023, 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 – and six - month periods ended March 31, 2024 and 2023. During the three-months ended March 31, 2024, the Company transferred one available for sale other investment security (subordinated debt in another financial institution) from Level 2 to Level 3 in the fair value hierarchy due to a change in valuation methodology. At March 31, 2024, the significant unobservable input used in the fair value measurement of available for sale investment securities was as follows: Significant Unobservable Range of Inputs (Weighted Financial Instrument Inputs Average) March 31, 2024 Other investment security Estimated market rate 9.00% - 10.00% (9.50%) The table below presents a reconciliation of available for sale investment securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three- and six-month periods ended March 31, 2024: Three Months Ended Six Months Ended March 31, 2024 March 31, 2024 (In thousands) Beginning balance $ — $ — Transfers from Level 2 to Level 3 $ 1,200 $ 1,200 Ending balance in Level 3 $ 1,200 $ 1,200 Other than the available for sale investment security noted above, there were no transfers into or out of the Company’s Level 3 financial assets of the fair value hierarchy for the three – and six - month periods ended March 31, 2024. 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 March 31, 2024 and September 30, 2023. 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 March 31, 2024 and September 30, 2023. Aggregate Aggregate Principal Fair Value Balance March ,31 March 31, (In thousands) 2024 2023 Difference Residential mortgage loans held for sale $ 2,979 $ 2,919 $ 60 Aggregate Aggregate Principal Fair Value Balance September 30, September 30, (In thousands) 2023 2023 Difference Residential mortgage loans held for sale $ 24,692 $ 24,382 $ 309 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 – and six - month periods ended March 31, 2024 and 2023: Three Months Ended Six Months Ended March 31, March 31, (In thousands) 2024 2023 2024 2023 Gains (losses) – included in mortgage banking income $ 993 $ 282 $ (36) $ 950 Interest income 73 389 366 817 $ 1,066 $ 671 $ 330 $ 1,767 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) March 31, 2024: Financial assets: Cash and due from banks $ 16,114 $ 16,114 $ — $ — Interest-bearing deposits with banks 46,855 46,855 — — Interest-bearing time deposits 490 — 490 — Securities available for sale 238,972 26,970 210,448 1,554 Securities held to maturity 1,170 — 35 1,146 Residential mortgage loans held for sale 2,979 — 2,979 — SBA loans held for sale 16,129 — — 17,703 Loans, net 1,882,458 — — 1,780,928 FRB and FHLB stock 24,986 N/A N/A N/A Accrued interest receivable 10,874 — 10,874 — Nonresidential mortgage loan servicing rights 78 — — 78 SBA loan servicing rights 2,950 — — 2,950 Equity securities (included in other assets) 204 204 — — Financial liabilities: Noninterest-bearing deposits 196,239 196,239 — — Interest-bearing deposits 1,591,207 — — 1,588,902 Borrowings from FHLB 315,000 — 311,346 — Subordinated notes 48,523 — 47,510 — Accrued interest payable 11,281 — 11,281 — Advance payments by borrowers for taxes and insurance 867 — 867 — Carrying Fair Value Measurements Using: Amount Level 1 Level 2 Level 3 (In thousands) September 30, 2023: Financial assets: Cash and due from banks $ 18,014 $ 18,014 $ — $ — Interest-bearing deposits with banks 12,831 12,831 — — Interest-bearing time deposits 490 — 490 — Securities available for sale 227,739 25,949 201,330 460 Securities held to maturity 1,300 — 38 1,265 Residential mortgage loans held for sale 24,692 — 24,692 — SBA loans held for sale 21,163 — 22,591 — Loans, net 1,770,243 — — 1,651,115 FRB and FHLB stock 24,939 N/A N/A N/A Accrued interest receivable 10,161 — 10,161 — SBA loan servicing rights 2,950 — — 2,950 Residential mortgage loan servicing rights 59,768 — — 59,768 Nonresidential mortgage loan servicing rights 101 — — 101 Derivative assets (included in other assets) 923 — 471 452 Equity securities (included in other assets) 160 160 — — Financial liabilities: Noninterest-bearing deposits 242,237 242,237 — — Interest-bearing deposits 1,439,557 — — 1,435,083 Borrowings from FHLB 363,183 — 356,257 — Subordinated note 48,444 — 46,940 — Accrued interest payable 8,926 — 8,926 — Advance payments by borrowers for taxes and insurance 1,027 — 1,027 — Derivative liabilities (included in other liabilities) 196 — 12 184 |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 6 Months Ended |
Mar. 31, 2024 | |
Employee Stock Ownership Plan | |
Employee Stock Ownership Plan | 7. 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 – and six - month periods ended March 31, 2024 and 2023. The ESOP trust held 274,568 and 293,695 shares of Company common stock at March 31, 2024 and September 30, 2023, respectively. |
Stock Based Compensation Plans
Stock Based Compensation Plans | 6 Months Ended |
Mar. 31, 2024 | |
Stock Based Compensation Plans | |
Stock Based Compensation Plans | 8. 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. At March 31, 2024, there were no remaining shares of the Company’s common stock available for issuance under the 2010 Plan. 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 March 31, 2024, 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 March 31, 2024, 10,600 shares of the Company’s common stock were available for issuance under the 2021 Plan, of which 4,590 shares were available for restricted stock and 6,010 shares were available for stock options. In November 2023, the Company granted 62,983 stock options and 19,475 restricted shares to directors, officers and key employees which will vest over a one-year or five-year period. The Company generally issues new shares under the 2016 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 six - month periods ended March 31, 2024 and 2023 were determined using the following assumptions: 2024 2023 Expected dividend yield 3.74 % 2.93 % Risk-free interest rate 4.44 % 3.94 % Expected volatility 28.4 % 27.7 % Expected life of options 6.9 years 6.8 years Weighted average fair value at grant date $ 3.55 $ 5.71 A summary of stock option activity as of March 31, 2024, and changes during the six-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 408,669 $ 20.79 Granted 62,983 15.10 Exercised — — Forfeited or expired (5,100) 17.66 Outstanding at end of period 466,552 $ 20.05 5.0 $ 423 Exercisable at end of period 276,039 $ 19.38 4.8 $ 423 There were no stock options exercised during the six - month periods ended March 31, 2024 and 2023. The Company recognized compensation expense related to stock options of $78,000 and $153,000 for the three- and six-month periods ended March 31, 2024, respectively. The Company recognized compensation expense related to stock options of $71,000 and $154,000 for the three – and six - month periods ended March 31, 2023, respectively. At March 31, 2024, there was $989,000 of unrecognized compensation expense related to nonvested stock options. The compensation expense is expected to be recognized over a weighted average period of 3.50 years. There was no cash received or tax benefit from the exercise of stock options during the six - month periods ended March 31, 2024 and 2023. 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 – and six – month periods ended March 31, 2024 was $98,000 and $195,000, respectively. Compensation expense related to restricted stock recognized for the three - and six - month periods ended March 31, 2023 was $96,000 and $199,000, respectively. A summary of the Company’s nonvested restricted shares activity as of March 31, 2024 and changes during the six - month period then ended is presented below. Weighted Number Average of Grant Date Shares Fair Value Nonvested at October 1, 2023 54,916 $ 24.73 Granted 19,475 $ 15.10 Vested (16,158) $ 24.23 Forfeited (800) $ 22.49 Nonvested at March 31, 2024 57,433 $ 21.64 There were 16,158 restricted shares vested during the six - month period ended March 31, 2024 with a total fair value of $244,000. There were 16,408 restricted shares that vested during the six - month period ended March 31, 2023 with a total fair value of $369,000. At March 31, 2024, there was $1.1 million of unrecognized compensation expense related to nonvested restricted shares. The compensation expense is expected to be recognized over a weighted average period of 3.36 years. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Mar. 31, 2024 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 9. 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 March 31, 2024 , the Company had no cash collateral posted with derivative counterparties against its derivative obligations. At September 30, 2023, the Company had cash collateral posted with certain derivative counterparties of $1.5 million, 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. As of March 31, 2024, the Company had no derivative financial instruments due to the wind down of the national mortgage banking operation. The tables below provide information on the Company’s derivative financial instruments as of September 30, 2023. Notional Asset Liability Amount Derivatives Derivatives September 30, September 30, September 30, (In thousands) 2023 2023 2023 Interest rate lock commitments $ 67,040 $ 452 $ 184 Forward mortgage loan sale contracts 66,000 471 12 $ 133,040 $ 923 $ 196 Income (loss) related to derivative financial instruments included in mortgage banking income in the accompanying consolidated statements of income for the three – and six - month periods ended March 31, 2024 and 2023 is as follows: Three Months Ended Six Months Ended March 31, March 31, (In thousands) 2024 2023 2024 2023 Interest rate lock commitments $ — $ 986 $ (268) $ 1,585 Forward mortgage loan sale contracts — (431) 354 (976) $ — $ 555 $ 86 $ 609 |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Mar. 31, 2024 | |
Regulatory Capital | |
Regulatory Capital | 10. 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 2.50% for 2024 and 2023. The Bank met all capital adequacy requirements to which it was subject as of March 31, 2024 and September 30, 2023. As of March 31, 2024, the most recent notification from the Federal Reserve Bank categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Company’s and Bank’s actual capital amounts and ratios are also presented in the table. The Company is not subject to the Federal Reserve Bank’s consolidated capital requirements because it has less than $3 billion in total consolidated assets. However, management has elected to disclose the Company’s capital amounts and ratios in addition to the Bank’s required disclosures in the table below. No amount was deducted from capital for interest-rate risk at either date. Minimum To Be Well Minimum Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes: Action Provisions: Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of March 31, 2024: Total capital (to risk-weighted assets): Consolidated $ 240,099 12.46 % $ 154,168 8.00 % N/A N/A Bank 235,099 12.20 154,133 8.00 $ 192,666 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 173,087 8.98 % $ 115,626 6.00 % N/A N/A Bank 216,610 11.24 115,600 6.00 $ 154,133 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 173,087 8.98 % $ 86,720 4.50 % N/A N/A Bank 216,610 11.24 86,700 4.50 $ 125,233 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 173,087 7.36 % $ 94,107 4.00 % N/A N/A Bank 216,610 9.21 94,090 4.00 $ 117,613 5.00 % As of September 30, 2023: Total capital (to risk-weighted assets): Consolidated $ 230,735 11.47 % $ 160,965 8.00 % N/A N/A Bank 226,461 11.27 160,822 8.00 $ 201,027 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 165,391 8.22 % $ 120,724 6.00 % N/A N/A Bank 209,561 10.42 120,616 6.00 $ 160,822 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 165,391 8.22 % $ 90,543 4.50 % N/A N/A Bank 209,561 10.42 90,462 4.50 $ 130,668 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 165,391 7.24 % $ 91,375 4.00 % N/A N/A Bank 209,561 9.17 91,406 4.00 $ 114,259 5.00 % |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Mar. 31, 2024 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 11. Recent Accounting Pronouncements The following are summaries of recently issued or adopted accounting pronouncements that impact the accounting and reporting practices of the Company: On October 1, 2023, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The impact of adopting ASC 326 was as follows: As Reported under Impact of ASC 326 Pre-ASC 326 ASC 326 Adoption Assets Allowance for credit losses (“ACL”) on loans Residential real estate 5,678 4,641 1,037 Commercial real estate 2,032 1,777 255 Single tenant net lease 4,032 3,810 222 SBA commercial real estate 2,433 1,922 511 Multifamily 247 268 (21) Residential construction 208 434 (226) Commercial construction 325 282 43 Land and land development 233 307 (74) Commercial business 1,219 1,714 (495) SBA commercial business 1,407 1,247 160 Consumer 515 498 17 Allowance for credit losses on loans 18,329 16,900 1,429 Net deferred tax assets 19,817 18,859 859 Liabilities Allowance for credit losses on off balance sheet credit exposures 1,940 — 1,940 In March 2022, the FASB issued ASU 2022-02 – Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, for any entities that have adopted ASU 2016-13 – Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In November 2023, the FASB issued ASU 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses on an interim and annual basis. Public entities are required to disclose significant expense categories and amounts for each reportable segment. Significant expense categories are derived from expenses that are regularly reported to an entity’s chief operating decision-maker (“CODM”), and included in a segment’s reported measures of profit or loss. Public entities are also required to disclose the title and position of the CODM and explain how the CODM uses the reported measures of profit or loss to assess segment performance. The ASU requires interim disclosures of certain segment-related disclosures that previously were only required annually. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the ASU should be applied prospectively. The adoption of the ASU is not expected to have a material impact on the Company’s consolidated financial position or results of operations. 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 | 6 Months Ended |
Mar. 31, 2024 | |
Segment Reporting | |
Segment Reporting | 12. 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. The Bank will continue to originate mortgage loans in its local markets that will either be sold in the secondary market or retained as portfolio loans, however the national mortgage banking division has been wound down as of December 31, 2023. 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 is no longer reported separately as of and for the three - month period ended March 31, 2024 due to the winddown of the national mortgage banking operation that was completed in the three - month period ended December 31, 2023. 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. Core SBA Consolidated Banking Lending Totals Three Months Ended March 31, 2024: Net interest income $ 13,469 $ 869 $ 14,338 Provision (credit) for credit losses – loans 762 (49) 713 Credit for unfunded lending commitments (113) (146) (259) Provision for credit losses - securities 23 — 23 Net interest income after provision 12,797 1,064 13,861 Net gains on sales of loans, SBA — 951 951 Mortgage banking income 53 — 53 Noninterest income 2,537 1,173 3,710 Noninterest expense 10,093 1,685 11,778 Income before taxes 5,241 552 5,793 Income tax expense 729 137 866 Segment profit 4,512 415 4,927 Non-cash items: Depreciation and amortization 592 1 593 Segment assets at March 31, 2024 2,279,791 85,192 2,364,983 Core SBA Consolidated Banking Lending Totals Six Months Ended March 31, 2024: Net interest income $ 26,579 $ 1,872 $ 28,451 Provision for credit losses – loans 781 402 1,183 Credit for unfunded lending commitments (180) (137) (317) Provision for credit losses – securities 23 — 23 Net interest income after provision 25,955 1,607 27,562 Net gains on sales of loans, SBA — 1,785 1,785 Mortgage banking income 142 — 142 Noninterest income 4,316 2,176 6,492 Noninterest expense 23,986 3,831 27,817 Income (loss) before taxes 6,285 (48) 6,237 Income tax expense 384 6 390 Segment profit (loss) 5,901 (54) 5,847 Non-cash items: Depreciation and amortization 1,198 3 1,201 Segment assets at March 31, 2024 2,279,791 85,192 2,364,983 Core SBA Mortgage Consolidated Banking Lending Banking Totals Three Months Ended March 31, 2023: Net interest income $ 13,632 $ 1,093 $ 187 $ 14,912 Provision (credit) for loan losses 422 (50) — 372 Net interest income after provision 13,210 1,143 187 14,540 Net gains on sales of loans, SBA — 907 — 907 Mortgage banking income 2 — 4,147 4,149 Noninterest income 1,733 1,636 4,147 7,516 Noninterest expense 10,651 2,662 4,686 17,999 Income (loss) before taxes 4,292 117 (352) 4,057 Income tax expense (benefit) 401 20 (88) 333 Segment profit (loss) 3,891 97 (264) 3,724 Non-cash items: Depreciation and amortization 541 6 25 572 Segment assets at March 31, 2023 2,051,149 83,506 104,951 2,239,606 Core SBA Mortgage Consolidated Banking Lending Banking Totals Six Months Ended March 31, 2023: Net interest income $ 28,640 $ 2,088 $ 445 $ 31,173 Provision for loan losses 1,123 233 — 1,356 Net interest income after provision 27,517 1,855 445 29,817 Net gains on sales of loans, SBA — 1,682 — 1,682 Mortgage banking income (loss) (8) — 6,653 6,645 Noninterest income 3,661 2,390 6,653 12,704 Noninterest expense 20,448 4,586 10,476 35,510 Income (loss) before taxes 10,730 (341) (3,378) 7,011 Income tax expense (benefit) 1,347 (87) (844) 416 Segment profit (loss) 9,383 (254) (2,534) 6,595 Non-cash items: Depreciation and amortization 1,199 11 52 1,262 Segment assets at March 31, 2023 2,051,149 83,506 104,951 2,239,606 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Mar. 31, 2024 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | 13. 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-and six-month periods ended March 31, 2024 and 2023: Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 (In thousands) In Scope for ASC 606 Service charges on deposit accounts $ 387 $ 471 $ 860 $ 1,029 ATM and interchange fees 585 586 1,034 1,325 Commission income 220 189 442 317 Other 31 35 56 60 Revenue from contracts with customers 1,223 1,281 2,392 2,731 Out of Scope for ASC 606 Net unrealized gain (loss) on equity securities 6 21 44 35 Gain on sale of SBA loans 951 907 1,785 1,682 Mortgage banking income 53 4,149 142 6,645 Increase in cash value of life insurance 333 266 662 491 Real estate lease income 115 117 230 234 Loan servicing and other income 1,029 775 1,237 886 Other noninterest income 2,487 6,235 4,100 9,973 Total noninterest income $ 3,710 $ 7,516 $ 6,492 $ 12,704 A description of the Company’s revenue streams accounted for under ASC 606 follows: Service Charges on Deposit Accounts ATM and Interchange Fees Commission Income Other Income |
Mortgage Banking Income
Mortgage Banking Income | 6 Months Ended |
Mar. 31, 2024 | |
Mortgage Banking Income | |
Mortgage Banking Income | 14. Mortgage Banking Income The components of mortgage banking income for the three-and six-month periods ended March 31, 2024 and 2023 were as follows: Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 (In thousands) Origination and sale of mortgage loans (1) $ (991) $ 1,885 $ (1,202) $ 2,617 Mortgage brokerage income 1 167 31 210 Net change in fair value of loans held for sale and interest rate lock commitments 993 1,268 (304) 2,535 Realized and unrealized gains (losses) from Forward sales commitments — (431) 354 (976) Capitalized residential mortgage loan servicing rights — 296 509 438 Net change in fair value of residential mortgage loan servicing rights (6) (1,267) (809) (2,507) Provisions for loan repurchases and indemnifications (37) (161) 19 (489) Net loan servicing income 93 2,392 1,544 4,817 Total mortgage banking income $ 53 $ 4,149 $ 142 $ 6,645 (1) Includes origination fees and realized gains and losses on the sale of mortgage loans in the secondary market. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Investment Securities | |
Schedule of amortized cost of securities available for sale and held to maturity | Gross Gross Allowance Amortized Unrealized Unrealized for Credit Fair Cost Gain Losses Losses Value (In thousands) March 31, 2024: Debt securities available for sale: U.S. Treasury notes $ 30,665 $ — $ 3,695 $ — $ 26,970 Agency mortgage-backed 27,726 — 3,212 — 24,514 Agency CMO 13,807 — 1,080 — 12,727 Privately-issued CMO 287 2 1 23 265 Privately-issued ABS 367 13 2 — 378 SBA certificates 11,251 — 428 — 10,823 Municipal bonds 174,612 415 12,932 — 162,095 Other 2,000 — 800 — 1,200 Total debt securities available for sale $ 260,715 $ 430 $ 22,150 $ 23 $ 238,972 Debt securities held to maturity: Agency mortgage-backed $ 32 $ — $ — $ — $ 32 Municipal bonds 1,138 11 — — 1,149 Total debt securities held to maturity $ 1,170 $ 11 $ — $ — $ 1,181 Gross Gross Amortized Unrealized Unrealized Fair Cost Gain Losses Value (In thousands) September 30, 2023: Debt securities available for sale: U.S. Treasury notes $ 30,598 $ — $ 4,649 $ 25,949 Agency mortgage-backed 28,542 — 4,274 24,268 Agency CMO 14,064 — 1,322 12,742 Privately-issued CMO 424 2 30 396 Privately-issued ABS 433 13 3 443 SBA certificates 11,587 — 842 10,745 Municipal bonds 177,561 19 26,096 151,484 Other 2,000 — 288 1,712 Total debt securities available for sale $ 265,209 $ 34 $ 37,504 $ 227,739 Debt securities held to maturity: Agency mortgage-backed $ 36 $ — $ 1 $ 35 Municipal bonds 1,264 4 — 1,268 Total debt securities held to maturity $ 1,300 $ 4 $ 1 $ 1,303 |
Schedule of amortized cost and fair value of investment securities by contractual maturity | The amortized cost and fair value of investment securities as of March 31, 2024 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 $ 4,401 $ 4,367 $ 254 $ 256 Due after one year through five years 8,262 8,140 606 612 Due after five years through ten years 44,344 39,390 278 281 Due after ten years 150,270 138,368 — — CMO 14,094 12,992 — — ABS 367 378 — — SBA certificates 11,251 10,823 — — Mortgage-backed securities 27,726 24,514 32 32 $ 260,715 $ 238,972 $ 1,170 $ 1,181 |
Schedule of investment securities with gross unrealized losses | Number of Gross Investment Fair Unrealized Positions Value Losses (Dollars in thousands) March 31, 2024: Debt securities available for sale: Continuous loss position less than twelve months: U.S. Treasury notes 5 $ 1,611 $ 26 Agency mortgage-backed 1 55 2 Municipal bonds 16 17,881 115 Other 1 1,200 800 Total less than twelve months 23 20,747 943 Continuous loss position more than twelve months: U.S. Treasury notes 1 25,359 3,669 Agency mortgage-backed 14 24,105 3,210 Agency CMO 15 12,728 1,080 Privately-issued CMO 1 244 1 Privately-issued ABS 1 165 2 SBA certificates 3 10,822 428 Municipal bonds 118 107,395 12,817 Total more than twelve months 153 180,818 21,207 Total debt securities available for sale 176 $ 201,565 $ 22,150 At March 31, 2024, the Company did not have any securities held to maturity with an unrealized loss. Number of Gross Investment Fair Unrealized Positions Value Losses (Dollars in thousands) September 30, 2023: Debt securities available for sale: Continuous loss position less than twelve months: U.S. Treasury notes 5 $ 1,576 $ 49 Agency mortgage-backed 2 163 8 Agency CMO 1 4,249 462 SBA certificates 1 31 3 Municipal bonds 43 45,931 3,334 Other 1 1,712 288 Total less than twelve months 53 53,662 4,144 Continuous loss position more than twelve months: U.S. Treasury notes 1 24,373 4,600 Agency mortgage-backed 15 23,859 4,266 Agency CMO 14 8,493 860 Privately-issued CMO 2 375 30 Privately-issued ABS 1 212 3 SBA certificates 2 10,714 839 Municipal bonds 115 95,185 22,762 Total more than twelve months 150 163,211 33,360 Total debt securities available for sale 203 $ 216,873 $ 37,504 Debt securities held to maturity: Continuous loss position more than twelve months: Agency mortgage-backed 1 $ 19 $ 1 Total more than twelve months 1 19 1 Total debt securities held to maturity 1 $ 19 $ 1 |
Schedule of available for sale debt securities allowance for credit loss | Allowance for Credit Losses Private Label CMO Three-Months Six-Months Ended Ended March 31, 2024 March 31, 2024 Allowance for credit losses Beginning of year, October 1, 2023 $ — $ — Provision for credit loss expense 24 24 Reductions due to increases in expected cash flows (1) (1) Recoveries — — Balance at end of period $ 23 $ 23 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Loans and Allowance for Loan Losses | |
Schedule of loans | March 31, September 30, 2024 2023 (In thousands) Real estate mortgage: Residential $ 609,182 $ 528,410 Commercial 183,522 187,232 Single tenant net lease 751,357 757,388 SBA commercial (1) 47,008 47,078 Multifamily 39,944 34,892 Residential construction 52,166 24,924 Commercial construction 20,978 14,588 Land and land development 15,573 17,234 Commercial business 124,153 117,594 SBA commercial business (1) 18,568 16,939 Consumer 38,467 39,915 Total loans 1,900,918 1,786,194 Deferred loan origination fees and costs, net 932 949 Allowance for credit losses (19,392) (16,900) Loans, net $ 1,882,458 $ 1,770,243 (1) Includes discounts on SBA loans of $3.4 million and $3.3 million for March 31, 2024 and September 30, 2023, respectively. |
Schedule of components of loans | The following table provides the components of loans as of September 30, 2023, prior to the adoption of ASU 2016-13 ( in thousands Individually Collectively Evaluated for Evaluated for Loans as Evaluated for Impairment: Impairment Impairment Loans Residential real estate $ 3,312 $ 525,098 $ 528,410 Commercial real estate 868 186,364 187,232 Single tenant net lease — 757,388 757,388 SBA commercial real estate 7,415 39,663 47,078 Multifamily 318 34,574 34,892 Residential construction — 24,924 24,924 Commercial construction — 14,588 14,588 Land and land development — 17,234 17,234 Commercial business 1,946 115,648 117,594 SBA commercial business 1,122 15,817 16,939 Consumer 233 39,682 39,915 $ 15,214 $ 1,770,980 $ 1,786,194 |
Schedule of allowance for loan losses | Individually Collectively Evaluated for Evaluated for Ending Impairment Impairment Balance (In thousands) September 30, 2023: Residential real estate $ 74 $ 4,567 $ 4,641 Commercial real estate 2 1,775 1,777 Single tenant net lease — 3,810 3,810 SBA commercial real estate — 1,922 1,922 Multifamily — 268 268 Residential construction — 434 434 Commercial construction — 282 282 Land and land development — 307 307 Commercial business 111 1,603 1,714 SBA commercial business 187 1,060 1,247 Consumer 189 309 498 $ 563 $ 16,337 $ 16,900 Beginning Balance Provisions (Credits) Charge-Offs Recoveries Ending Balance March 31, 2024: (In thousands) Residential real estate $ 5,688 $ 686 $ — $ 7 $ 6,381 Commercial real estate 1,797 (152) — — 1,645 Single tenant net lease 4,080 (316) — — 3,764 SBA commercial real estate 2,871 — — 1 2,872 Multifamily 321 89 — — 410 Residential construction 304 47 — — 351 Commercial construction 384 47 — — 431 Land and land development 197 (23) — — 174 Commercial business 1,222 288 (26) — 1,484 SBA commercial business 1,499 (49) (21) 5 1,434 Consumer 426 96 (101) 25 446 $ 18,789 $ 713 $ (148) $ 38 $ 19,392 March 31, 2023: Residential real estate $ 3,100 $ 424 $ — $ 13 $ 3,537 Commercial real estate 1,751 32 — — 1,783 Single tenant net lease 3,804 (78) — — 3,726 SBA commercial real estate 2,398 212 (3) — 2,607 Multifamily 252 74 — — 326 Residential construction 367 (121) — — 246 Commercial construction 83 — — — 83 Land and land development 200 (2) — — 198 Commercial business 1,255 37 — 30 1,322 SBA commercial business 2,338 (262) — 12 2,088 Consumer 532 56 (56) 10 542 $ 16,080 $ 372 $ (59) $ 65 $ 16,458 Beginning Balance Adoption of ASC 326 Provisions (Credits) Charge-Offs Recoveries Ending Balance (In thousands) March 31, 2024: Residential real estate $ 4,641 $ 1,037 $ 695 $ — $ 8 $ 6,381 Commercial real estate 1,777 255 (387) — — 1,645 Single tenant net lease 3,810 222 (268) — — 3,764 SBA commercial real estate 1,922 511 379 (2) 62 2,872 Multifamily 268 (21) 163 — — 410 Residential construction 434 (226) 143 — — 351 Commercial construction 282 43 106 — — 431 Land and land development 307 (74) (59) — — 174 Commercial business 1,714 (495) 291 (26) — 1,484 SBA commercial business 1,247 160 23 (24) 28 1,434 Consumer 498 17 97 (209) 43 446 $ 16,900 $ 1,429 $ 1,183 $ (261) $ 141 $ 19,392 March 31, 2023: Residential real estate $ 2,716 $ — $ 806 $ — $ 15 $ 3,537 Commercial real estate 1,590 — 193 — — 1,783 Single tenant net lease 3,838 — (112) — — 3,726 SBA commercial real estate 2,578 — 106 (77) — 2,607 Multifamily 251 — 75 — — 326 Residential construction 305 — (59) — — 246 Commercial construction 107 — (24) — — 83 Land and land development 212 — (14) — — 198 Commercial business 1,193 — 69 — 60 1,322 SBA commercial business 2,122 — 128 (190) 28 2,088 Consumer 448 — 188 (121) 27 542 $ 15,360 $ — $ 1,356 $ (388) $ 130 $ 16,458 |
Schedule of the average balance of impaired loans individually evaluated for impairment | Three Months Ended March 31, Six Months Ended March 31, 2023 2023 Average Interest Average Interest Recorded Income Recorded Income Balance Recognized Balance Recognized Loans with no related allowance recorded: Residential real estate $ 3,591 $ 30 $ 3,236 $ 30 Commercial real estate 969 13 973 13 Single tenant net lease — — — — SBA commercial real estate 7,822 — 7,199 — Multifamily 384 10 389 10 Residential construction — — — — Commercial construction — — — — Land and land development — — — — Commercial business 895 24 993 24 SBA commercial business 954 — 813 — Consumer 72 — 75 — $ 14,687 $ 77 $ 13,678 $ 77 Loans with an allowance recorded: Residential real estate $ — $ — $ — $ — Commercial real estate — — — — Single tenant net lease — — — — SBA commercial real estate 1,022 — 1,596 — Multifamily — — — — Residential construction — — — — Commercial construction — — — — Land and land development — — — — Commercial business 135 — 90 — SBA commercial business 1,229 — 1,259 — Consumer 223 — 197 — $ 2,609 $ — $ 3,142 $ — Total: Residential real estate $ 3,591 $ 30 $ 3,236 $ 30 Commercial real estate 969 13 973 13 Single tenant net lease — — — — SBA commercial real estate 8,844 — 8,795 — Multifamily 384 10 389 10 Residential construction — — — — Commercial construction — — — — Land and land development — — — — Commercial business 1,030 24 1,083 24 SBA commercial business 2,183 — 2,072 — Consumer 295 — 272 — $ 17,296 $ 77 $ 16,820 $ 77 Unpaid Recorded Principal Related Balance Balance Allowance (In thousands) Loans with no related allowance recorded: Residential real estate $ 1,989 $ 2,139 $ — Commercial real estate 551 627 — Single tenant net lease — — — SBA commercial real estate 7,415 9,397 — Multifamily 318 362 — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 870 972 — SBA commercial business 684 1,799 — Consumer 44 58 — $ 11,871 $ 15,354 $ — Loans with an allowance recorded: Residential real estate $ 1,323 $ 1,328 $ 74 Commercial real estate 317 317 2 Single tenant net lease — — — SBA commercial real estate — — — Multifamily — — — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 1,076 1,165 111 SBA commercial business 438 637 187 Consumer 189 189 189 $ 3,343 $ 3,636 $ 563 Total: Residential real estate $ 3,312 $ 3,467 $ 74 Commercial real estate 868 944 2 Single tenant net lease — — — SBA commercial real estate 7,415 9,397 — Multifamily 318 362 — Residential construction — — — Commercial construction — — — Land and land development — — — Commercial business 1,946 2,137 111 SBA commercial business 1,122 2,436 187 Consumer 233 247 189 $ 15,214 $ 18,990 $ 563 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | At March 31, 2024 At September 30, 2023 Nonaccrual Loans 90+ Loans 90+ Total Loans with No Days Total Days Nonaccrual Allowance for Past Due Nonaccrual Past Due Loans Credit Loses Still Accruing Loans Still Accruing (In thousands) (In thousands) Residential real estate $ 2,960 $ 1,803 $ — $ 2,426 $ — Commercial real estate 496 496 — 511 — Single tenant net lease — — — — — SBA commercial real estate 8,110 6,025 — 7,415 — Multifamily 290 290 — 318 — Residential construction — — — — — Commercial construction — — — — — Land and land development — — — — — Commercial business 1,649 1,470 — 1,946 — SBA commercial business 2,121 1,241 — 1,099 — Consumer 12 12 — 233 — Total $ 15,638 $ 11,337 $ — $ 13,948 $ — |
Schedule of amortized cost basis of collateral dependent loans by collateral types | March 31, 2024 Real Estate Other Total (In thousands) Residential real estate $ 2,960 $ — $ 2,960 Commercial real estate 496 — 496 SBA commercial real estate 8,110 — 8,110 Multifamily 290 — 290 Commercial business — 1,649 1,649 SBA commercial business — 2,121 2,121 Consumer — 12 12 $ 11,856 $ 3,782 $ 15,638 |
Schedule of aging of recorded investment in past due loans | The following table presents the aging of past due loans at March 31, 2024: 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 $ 2,764 $ 1,398 $ 2,304 $ 6,466 $ 602,716 $ 609,182 Commercial real estate 254 — 496 750 182,772 183,522 Single tenant net lease — — — — 751,357 751,357 SBA commercial real estate 359 49 4,422 4,830 42,178 47,008 Multifamily — — — — 39,944 39,944 Residential construction — — — — 52,166 52,166 Commercial construction — — — — 20,978 20,978 Land and land development 63 — — 63 15,510 15,573 Commercial business 14 — 37 51 124,102 124,153 SBA commercial business 213 — 718 931 17,637 18,568 Consumer 190 3 12 205 38,262 38,467 Total $ 3,857 $ 1,450 $ 7,989 $ 13,296 $ 1,887,622 $ 1,900,918 The following table presents the aging of past due loans at September 30, 2023: ar 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 $ 2,715 $ 132 $ 1,818 $ 4,665 $ 523,745 $ 528,410 Commercial real estate 23 62 — 85 187,147 187,232 Single tenant net lease — — — — 757,388 757,388 SBA commercial real estate 764 — 3,877 4,641 42,437 47,078 Multifamily — — — — 34,892 34,892 Residential construction — — — — 24,924 24,924 Commercial construction — — — — 14,588 14,588 Land and land development 40 — — 40 17,194 17,234 Commercial business 112 — 86 198 117,396 117,594 SBA commercial business 130 — 682 812 16,127 16,939 Consumer 137 5 36 178 39,737 39,915 Total $ 3,921 $ 199 $ 6,499 $ 10,619 $ 1,775,575 $ 1,786,194 |
Schedule of investment in loans by risk category | Loans Amortized Cost Basis by Origination Fiscal Year End September 30, Revolving Loans Revolving Converted (In thousands) 2024 2023 2022 2021 2020 Prior Loans To Term Total Residential real estate Pass $ 54,231 $ 35,267 $ 46,873 $ 19,671 $ 11,787 $ 58,071 $ 382,113 $ — $ 608,013 Special mention — — — — — — — — — Substandard — 111 — 278 — 455 306 — 1,150 Doubtful — — — — — 19 — — 19 Loss — — — — — — — — — Total residential real estate 54,231 35,378 46,873 19,949 11,787 58,545 382,419 — 609,182 YTD gross charge-offs — — — — — — — — — Commercial real estate Pass 6,652 26,464 64,255 22,853 8,146 54,460 — — $ 182,830 Special mention — — — — — — — — — Substandard — 496 — — 23 173 — — 692 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial real estate 6,652 26,960 64,255 22,853 8,169 54,633 — — 183,522 YTD gross charge-offs — — — — — — — — — Single tenant net lease commercial real estate Pass 18,655 151,778 277,141 72,168 101,196 130,419 — — 751,357 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total single tenant net lease 18,655 151,778 277,141 72,168 101,196 130,419 — — 751,357 YTD gross charge-offs — — — — — — — — — SBA commercial real estate Pass 2,944 8,319 5,418 5,786 7,381 6,757 37 — 36,642 Special mention — — 229 — — — — — 229 Substandard — — 162 143 1,776 6,371 — — 8,452 Doubtful — — — — — 1,624 — — 1,624 Loss — — — — — 61 — — 61 Total SBA commercial real estate 2,944 8,319 5,809 5,929 9,157 14,813 37 — 47,008 YTD gross charge-offs — — — — — 2 — — 2 Loans Amortized Cost Basis by Origination Fiscal Year End September 30, Revolving Loans Revolving Converted (In thousands) 2024 2023 2022 2021 2020 Prior Loans To Term Total Multifamily real estate Pass 5,000 2,610 7,534 5,524 11,956 7,030 — — 39,654 Special mention — — — — — — — — — Substandard — — — — — 290 — — 290 Doubtful — — — — — — — — — Loss — — — — — — — — — Total multifamily real estate 5,000 2,610 7,534 5,524 11,956 7,320 — — 39,944 YTD gross charge-offs — — — — — — — — — Residential construction Pass 4,038 26,616 21,512 — — — — — 52,166 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total residential construction 4,038 26,616 21,512 — — — — — 52,166 YTD gross charge-offs — — — — — — — — — Commercial construction Pass — 16,789 4,189 — — — — — 20,978 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial construction — 16,789 4,189 — — — — — 20,978 YTD gross charge-offs — — — — — — — — — Land and land development Pass 432 7,083 5,410 1,074 401 1,173 — — 15,573 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Loss — — — — — — — — — Total land and land development 432 7,083 5,410 1,074 401 1,173 — — 15,573 YTD gross charge-offs — — — — — — — — — Loans Amortized Cost Basis by Origination Fiscal Year End September 30, Revolving Loans Revolving Converted (In thousands) 2024 2023 2022 2021 2020 Prior Loans To Term Total Commercial business Pass 17,910 56,408 28,562 12,245 902 6,477 — — 122,504 Special mention — — — — — — — — — Substandard — 999 179 44 4 423 — — 1,649 Doubtful — — — — — — — — — Loss — — — — — — — — — Total commercial business 17,910 57,407 28,741 12,289 906 6,900 — — 124,153 YTD gross charge-offs — — — 26 — — — — 26 SBA commercial business Pass 3,589 2,625 732 1,225 4,219 3,610 375 — 16,375 Special mention — — — — — — — — — Substandard — — — 60 53 2,050 — — 2,163 Doubtful — — — — — 9 — — 9 Loss — — — — — 21 — — 21 Total SBA commercial business 3,589 2,625 732 1,285 4,272 5,690 375 — 18,568 YTD gross charge-offs — — — — — 24 — — 24 Consumer Pass 2,652 4,746 3,764 554 306 176 26,257 — 38,455 Special mention — — — — — — — — — Substandard — 5 — — — — 7 — 12 Doubtful — — — — — — — — — Loss — — — — — — — — — Total consumer 2,652 4,751 3,764 554 306 176 26,264 — 38,467 YTD gross charge-offs — — — 1 — 208 — — 209 Total loans Pass 116,103 338,705 465,390 141,100 146,294 268,173 408,782 — 1,884,547 Special mention — — 229 — — — — — 229 Substandard — 1,611 341 525 1,856 9,762 313 — 14,408 Doubtful — — — — — 1,652 — — 1,652 Loss — — — — — 82 — — 82 Total loans 116,103 340,316 465,960 141,625 148,150 279,669 409,095 — 1,900,918 YTD gross charge-offs — — — 27 — 234 — — 261 Special September 30, 2023: Pass Mention Substandard Doubtful Loss Total (In thousands) Residential real estate $ 525,735 $ — $ 2,653 $ 22 $ — $ 528,410 Commercial real estate 186,520 — 712 — — 187,232 Single tenant net lease 757,388 — — — — 757,388 SBA commercial real estate 39,092 278 6,083 1,625 — 47,078 Multifamily 34,574 — 318 — — 34,892 Residential construction 24,924 — — — — 24,924 Commercial construction 14,588 — — — — 14,588 Land and land development 17,234 — — — — 17,234 Commercial business 115,647 40 1,907 — — 117,594 SBA commercial business 14,572 — 2,327 40 — 16,939 Consumer 39,871 — 44 — — 39,915 Total $ 1,770,145 $ 318 $ 14,044 $ 1,687 $ — $ 1,786,194 Accruing Nonaccrual Total (In thousands) March 31, 2023: Residential real estate $ 997 $ — $ 997 Commercial real estate 373 542 915 SBA commercial real estate — 1,623 1,623 Multifamily 335 — 335 Commercial business 741 — 741 SBA commercial business — 248 248 Total $ 2,446 $ 2,413 $ 4,859 |
SBA loan servicing rights | |
Loans and Allowance for Loan Losses | |
Schedule of loan servicing rights | Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 (In thousands) Balance, beginning of period $ 2,907 $ 3,301 $ 2,950 $ 3,790 Servicing rights capitalized 278 261 535 459 Amortization (137) (195) (280) (390) Direct write-offs (98) (170) (315) (311) Change in valuation allowance — 530 60 179 Balance, end of period $ 2,950 $ 3,727 $ 2,950 $ 3,727 |
Mortgage servicing rights | |
Loans and Allowance for Loan Losses | |
Schedule of key assumptions used to estimate the fair value | Range of Inputs (Weighted Average) Assumption September 30, 2023 Discount rate 9.44% - 14.50% (9.51%) Prepayment rate 5.00% - 85.82% (6.82%) |
Schedule of loan servicing rights | Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 (In thousands) Fair value, beginning of period $ 709 $ 62,165 $ 59,768 $ 63,263 Servicing rights capitalized — 296 509 438 Changes in fair value related to: Loan repayments (6) (1,041) (672) (2,064) Sales (946) — (59,464) — Gain (Loss) on sale of MSRs 243 — (4) — Change in valuation model inputs or assumptions — (226) (137) (443) Balance, end of period $ — $ 61,194 $ — $ 61,194 |
Nonresidential MSR | |
Loans and Allowance for Loan Losses | |
Schedule of loan servicing rights | Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 (In thousands) Balance, beginning of period $ 95 $ 132 $ 101 $ 141 Servicing rights capitalized — — — — Amortization (6) (8) (12) (17) Direct write-offs (11) — (11) — Change in valuation allowance — — — — Balance, end of period $ 78 $ 124 $ 78 $ 124 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Deposits | |
Schedule of deposits | March 31, September 30, 2024 2023 (In thousands) Noninterest-bearing demand deposits $ 196,239 $ 242,237 NOW accounts 312,394 336,446 Money market accounts 337,939 323,739 Savings accounts 160,668 170,073 Retail time deposits 232,031 170,980 Brokered & reciprocal time deposits 548,175 438,319 Total $ 1,787,446 $ 1,681,794 |
Supplemental Disclosure for N_2
Supplemental Disclosure for Net Income Per Share (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Supplemental Disclosure for Net Income Per Share | |
Schedule of earnings per share information | Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 (Dollars in thousands, except per share data) Basic: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 4,927 $ 3,724 $ 5,847 $ 6,595 Shares: Weighted average common shares outstanding, basic 6,832,130 6,842,897 6,828,017 6,879,805 Net income per common share, basic $ 0.72 $ 0.54 $ 0.86 $ 0.96 Diluted: Earnings: Net income attributable to First Savings Financial Group, Inc. available to common shareholders $ 4,927 $ 3,724 $ 5,847 $ 6,595 Shares: Weighted average common shares outstanding, basic 6,832,130 6,842,897 6,828,017 6,879,805 Add: Dilutive effect of outstanding options 27,481 38,599 21,911 46,472 Add: Dilutive effect of restricted stock — — — — Weighted average common shares outstanding, as adjusted 6,859,611 6,881,496 6,849,928 6,926,277 Net income per common share, diluted $ 0.72 $ 0.54 $ 0.85 $ 0.95 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
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) March 31, 2024: Assets Measured – Recurring Basis: Securities available for sale: U.S. Treasury bills and notes $ 26,970 $ — $ — $ 26,970 Agency mortgage-backed — 24,514 — 24,514 Agency CMO — 12,727 — 12,727 Privately-issued CMO — 20 245 265 Privately-issued ABS — 299 79 378 SBA certificates — 10,793 30 10,823 Municipal bonds — 162,095 — 162,095 Other — — 1,200 1,200 Total securities available for sale $ 26,970 $ 210,448 $ 1,554 $ 238,972 Residential mortgage loans held for sale $ — $ 2,979 $ — $ 2,979 Equity securities (included in other assets) $ 204 $ — $ — $ 204 Assets Measured – Nonrecurring Basis: Collateral dependent loans: Residential real estate $ — $ — $ 793 $ 793 SBA commercial real estate — — 1,480 1,480 Commercial business — — 137 137 SBA commercial business — — 432 432 Total collateral dependent loans $ — $ — $ 2,842 $ 2,842 Carrying Value Level 1 Level 2 Level 3 Total (In thousands) September 30, 2023: Assets Measured – Recurring Basis Securities available for sale: U.S. Treasury notes $ 25,949 $ — $ — $ 25,949 Agency mortgage-backed — 24,268 — 24,268 Agency CMO — 12,742 — 12,742 Privately-issued CMO — 46 350 396 Privately-issued ABS — 364 79 443 SBA certificates — 10,714 31 10,745 Municipal bonds — 151,484 — 151,484 Other — 1,712 — 1,712 Total securities available for sale $ 25,949 $ 201,330 $ 460 $ 227,739 Residential mortgage loans held for sale $ — $ 24,692 $ — $ 24,692 Derivative assets (included in other assets) $ — $ 471 $ 452 $ 923 Equity securities (included in other assets) $ 160 $ — $ — $ 160 Residential mortgage servicing rights $ — $ — $ 59,768 $ 59,768 Liabilities Measured – Recurring Basis Derivative liabilities (included in other liabilities) $ — $ 12 $ 184 $ 196 Assets Measured – Nonrecurring Basis Collateral dependent loans: Residential real estate $ — $ — $ 306 $ 306 Commercial business — — 965 965 SBA commercial business — — 237 237 Total collateral dependent loans $ — $ — $ 1,508 $ 1,508 SBA loan servicing rights $ — $ — $ 2,950 $ 2,950 |
Schedule of reconciliation of derivative assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Three Months Ended Six Months Ended March 31, March 31, (In thousands) 2024 2023 2024 2023 Beginning balance $ — $ 362 $ 268 $ (238) Unrealized gains (losses) recognized in earnings, net of settlements — 986 (268) 1,586 Ending balance $ — $ 1,348 $ — $ 1,348 |
Schedule of significant unobservable inputs (Level 3) used in the valuation of derivative financial instruments measured at fair value on a recurring basis | Range of Inputs Significant (Weighted Average) Unobservable September 30, Financial Instrument Inputs 2023 Interest rate lock commitments Pull-through rate 54% - 95% (81%) Direct costs to close 0.00% - 5.00% (0.62%) |
Schedule of reconciliation of available for sale investment securities measured at fair value on recurring basis using significant unobservable inputs (Level 3) | Three Months Ended Six Months Ended March 31, 2024 March 31, 2024 (In thousands) Beginning balance $ — $ — Transfers from Level 2 to Level 3 $ 1,200 $ 1,200 Ending balance in Level 3 $ 1,200 $ 1,200 |
Schedule of aggregate fair value and the aggregate remaining principal balance for residential mortgage loans held for sale | Aggregate Aggregate Principal Fair Value Balance March ,31 March 31, (In thousands) 2024 2023 Difference Residential mortgage loans held for sale $ 2,979 $ 2,919 $ 60 Aggregate Aggregate Principal Fair Value Balance September 30, September 30, (In thousands) 2023 2023 Difference Residential mortgage loans held for sale $ 24,692 $ 24,382 $ 309 |
Schedule of gains and losses and interest included in earnings related to financial assets measured at fair value under the fair value option | Three Months Ended Six Months Ended March 31, March 31, (In thousands) 2024 2023 2024 2023 Gains (losses) – included in mortgage banking income $ 993 $ 282 $ (36) $ 950 Interest income 73 389 366 817 $ 1,066 $ 671 $ 330 $ 1,767 |
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) March 31, 2024: Financial assets: Cash and due from banks $ 16,114 $ 16,114 $ — $ — Interest-bearing deposits with banks 46,855 46,855 — — Interest-bearing time deposits 490 — 490 — Securities available for sale 238,972 26,970 210,448 1,554 Securities held to maturity 1,170 — 35 1,146 Residential mortgage loans held for sale 2,979 — 2,979 — SBA loans held for sale 16,129 — — 17,703 Loans, net 1,882,458 — — 1,780,928 FRB and FHLB stock 24,986 N/A N/A N/A Accrued interest receivable 10,874 — 10,874 — Nonresidential mortgage loan servicing rights 78 — — 78 SBA loan servicing rights 2,950 — — 2,950 Equity securities (included in other assets) 204 204 — — Financial liabilities: Noninterest-bearing deposits 196,239 196,239 — — Interest-bearing deposits 1,591,207 — — 1,588,902 Borrowings from FHLB 315,000 — 311,346 — Subordinated notes 48,523 — 47,510 — Accrued interest payable 11,281 — 11,281 — Advance payments by borrowers for taxes and insurance 867 — 867 — Carrying Fair Value Measurements Using: Amount Level 1 Level 2 Level 3 (In thousands) September 30, 2023: Financial assets: Cash and due from banks $ 18,014 $ 18,014 $ — $ — Interest-bearing deposits with banks 12,831 12,831 — — Interest-bearing time deposits 490 — 490 — Securities available for sale 227,739 25,949 201,330 460 Securities held to maturity 1,300 — 38 1,265 Residential mortgage loans held for sale 24,692 — 24,692 — SBA loans held for sale 21,163 — 22,591 — Loans, net 1,770,243 — — 1,651,115 FRB and FHLB stock 24,939 N/A N/A N/A Accrued interest receivable 10,161 — 10,161 — SBA loan servicing rights 2,950 — — 2,950 Residential mortgage loan servicing rights 59,768 — — 59,768 Nonresidential mortgage loan servicing rights 101 — — 101 Derivative assets (included in other assets) 923 — 471 452 Equity securities (included in other assets) 160 160 — — Financial liabilities: Noninterest-bearing deposits 242,237 242,237 — — Interest-bearing deposits 1,439,557 — — 1,435,083 Borrowings from FHLB 363,183 — 356,257 — Subordinated note 48,444 — 46,940 — Accrued interest payable 8,926 — 8,926 — Advance payments by borrowers for taxes and insurance 1,027 — 1,027 — Derivative liabilities (included in other liabilities) 196 — 12 184 |
Collateral Dependent Loans | |
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 | Range of Inputs Significant (Weighted Average) Range of Inputs (Weighted Unobservable March 31, Average) September 30, Financial Instrument Inputs 2024 2023 Collateral dependent loans Discount from appraised value 10.0% - 50.0% (15.49%) 10.0% - 50.0% (14.22%) Estimated costs to sell 6.0% - 6.0% (6.00%) 6.0% - 6.0% (6.00%) |
SBA loan servicing rights | |
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 | Significant Range of Inputs (Weighted Unobservable Average) September 30, Financial Instrument Inputs 2023 SBA loan servicing rights Discount rate 10.25% - 25.00% (13.79%) Prepayment speed 8.60% - 32.85% (16.91%) |
Other investment security | |
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 | Significant Unobservable Range of Inputs (Weighted Financial Instrument Inputs Average) March 31, 2024 Other investment security Estimated market rate 9.00% - 10.00% (9.50%) |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Stock Based Compensation Plans | |
Schedule of fair value of options granted | The fair value of options granted during the six - month periods ended March 31, 2024 and 2023 were determined using the following assumptions: 2024 2023 Expected dividend yield 3.74 % 2.93 % Risk-free interest rate 4.44 % 3.94 % Expected volatility 28.4 % 27.7 % Expected life of options 6.9 years 6.8 years Weighted average fair value at grant date $ 3.55 $ 5.71 |
Schedule of stock option activity | A summary of stock option activity as of March 31, 2024, and changes during the six-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 408,669 $ 20.79 Granted 62,983 15.10 Exercised — — Forfeited or expired (5,100) 17.66 Outstanding at end of period 466,552 $ 20.05 5.0 $ 423 Exercisable at end of period 276,039 $ 19.38 4.8 $ 423 |
Schedule of nonvested restricted shares activity | Weighted Number Average of Grant Date Shares Fair Value Nonvested at October 1, 2023 54,916 $ 24.73 Granted 19,475 $ 15.10 Vested (16,158) $ 24.23 Forfeited (800) $ 22.49 Nonvested at March 31, 2024 57,433 $ 21.64 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Derivative Financial Instruments | |
Schedule of derivative financial instruments | Notional Asset Liability Amount Derivatives Derivatives September 30, September 30, September 30, (In thousands) 2023 2023 2023 Interest rate lock commitments $ 67,040 $ 452 $ 184 Forward mortgage loan sale contracts 66,000 471 12 $ 133,040 $ 923 $ 196 |
Schedule of income (loss) related to derivative financial instruments | Three Months Ended Six Months Ended March 31, March 31, (In thousands) 2024 2023 2024 2023 Interest rate lock commitments $ — $ 986 $ (268) $ 1,585 Forward mortgage loan sale contracts — (431) 354 (976) $ — $ 555 $ 86 $ 609 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Regulatory Capital | |
Schedule of actual capital amounts and ratios | Minimum To Be Well Minimum Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes: Action Provisions: Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of March 31, 2024: Total capital (to risk-weighted assets): Consolidated $ 240,099 12.46 % $ 154,168 8.00 % N/A N/A Bank 235,099 12.20 154,133 8.00 $ 192,666 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 173,087 8.98 % $ 115,626 6.00 % N/A N/A Bank 216,610 11.24 115,600 6.00 $ 154,133 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 173,087 8.98 % $ 86,720 4.50 % N/A N/A Bank 216,610 11.24 86,700 4.50 $ 125,233 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 173,087 7.36 % $ 94,107 4.00 % N/A N/A Bank 216,610 9.21 94,090 4.00 $ 117,613 5.00 % As of September 30, 2023: Total capital (to risk-weighted assets): Consolidated $ 230,735 11.47 % $ 160,965 8.00 % N/A N/A Bank 226,461 11.27 160,822 8.00 $ 201,027 10.00 % Tier 1 capital (to risk-weighted assets): Consolidated $ 165,391 8.22 % $ 120,724 6.00 % N/A N/A Bank 209,561 10.42 120,616 6.00 $ 160,822 8.00 % Common equity tier 1 capital (to risk-weighted assets): Consolidated $ 165,391 8.22 % $ 90,543 4.50 % N/A N/A Bank 209,561 10.42 90,462 4.50 $ 130,668 6.50 % Tier 1 capital (to average adjusted total assets): Consolidated $ 165,391 7.24 % $ 91,375 4.00 % N/A N/A Bank 209,561 9.17 91,406 4.00 $ 114,259 5.00 % |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Recent Accounting Pronouncements | |
Schedule of impact of adopting ASC 326 | As Reported under Impact of ASC 326 Pre-ASC 326 ASC 326 Adoption Assets Allowance for credit losses (“ACL”) on loans Residential real estate 5,678 4,641 1,037 Commercial real estate 2,032 1,777 255 Single tenant net lease 4,032 3,810 222 SBA commercial real estate 2,433 1,922 511 Multifamily 247 268 (21) Residential construction 208 434 (226) Commercial construction 325 282 43 Land and land development 233 307 (74) Commercial business 1,219 1,714 (495) SBA commercial business 1,407 1,247 160 Consumer 515 498 17 Allowance for credit losses on loans 18,329 16,900 1,429 Net deferred tax assets 19,817 18,859 859 Liabilities Allowance for credit losses on off balance sheet credit exposures 1,940 — 1,940 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Segment Reporting | |
Schedule of sum of the segment amounts and consolidated totals | Core SBA Consolidated Banking Lending Totals Three Months Ended March 31, 2024: Net interest income $ 13,469 $ 869 $ 14,338 Provision (credit) for credit losses – loans 762 (49) 713 Credit for unfunded lending commitments (113) (146) (259) Provision for credit losses - securities 23 — 23 Net interest income after provision 12,797 1,064 13,861 Net gains on sales of loans, SBA — 951 951 Mortgage banking income 53 — 53 Noninterest income 2,537 1,173 3,710 Noninterest expense 10,093 1,685 11,778 Income before taxes 5,241 552 5,793 Income tax expense 729 137 866 Segment profit 4,512 415 4,927 Non-cash items: Depreciation and amortization 592 1 593 Segment assets at March 31, 2024 2,279,791 85,192 2,364,983 Core SBA Consolidated Banking Lending Totals Six Months Ended March 31, 2024: Net interest income $ 26,579 $ 1,872 $ 28,451 Provision for credit losses – loans 781 402 1,183 Credit for unfunded lending commitments (180) (137) (317) Provision for credit losses – securities 23 — 23 Net interest income after provision 25,955 1,607 27,562 Net gains on sales of loans, SBA — 1,785 1,785 Mortgage banking income 142 — 142 Noninterest income 4,316 2,176 6,492 Noninterest expense 23,986 3,831 27,817 Income (loss) before taxes 6,285 (48) 6,237 Income tax expense 384 6 390 Segment profit (loss) 5,901 (54) 5,847 Non-cash items: Depreciation and amortization 1,198 3 1,201 Segment assets at March 31, 2024 2,279,791 85,192 2,364,983 Core SBA Mortgage Consolidated Banking Lending Banking Totals Three Months Ended March 31, 2023: Net interest income $ 13,632 $ 1,093 $ 187 $ 14,912 Provision (credit) for loan losses 422 (50) — 372 Net interest income after provision 13,210 1,143 187 14,540 Net gains on sales of loans, SBA — 907 — 907 Mortgage banking income 2 — 4,147 4,149 Noninterest income 1,733 1,636 4,147 7,516 Noninterest expense 10,651 2,662 4,686 17,999 Income (loss) before taxes 4,292 117 (352) 4,057 Income tax expense (benefit) 401 20 (88) 333 Segment profit (loss) 3,891 97 (264) 3,724 Non-cash items: Depreciation and amortization 541 6 25 572 Segment assets at March 31, 2023 2,051,149 83,506 104,951 2,239,606 Core SBA Mortgage Consolidated Banking Lending Banking Totals Six Months Ended March 31, 2023: Net interest income $ 28,640 $ 2,088 $ 445 $ 31,173 Provision for loan losses 1,123 233 — 1,356 Net interest income after provision 27,517 1,855 445 29,817 Net gains on sales of loans, SBA — 1,682 — 1,682 Mortgage banking income (loss) (8) — 6,653 6,645 Noninterest income 3,661 2,390 6,653 12,704 Noninterest expense 20,448 4,586 10,476 35,510 Income (loss) before taxes 10,730 (341) (3,378) 7,011 Income tax expense (benefit) 1,347 (87) (844) 416 Segment profit (loss) 9,383 (254) (2,534) 6,595 Non-cash items: Depreciation and amortization 1,199 11 52 1,262 Segment assets at March 31, 2023 2,051,149 83,506 104,951 2,239,606 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Revenue from Contracts with Customers | |
Schedule of sources of noninterest income | Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 (In thousands) In Scope for ASC 606 Service charges on deposit accounts $ 387 $ 471 $ 860 $ 1,029 ATM and interchange fees 585 586 1,034 1,325 Commission income 220 189 442 317 Other 31 35 56 60 Revenue from contracts with customers 1,223 1,281 2,392 2,731 Out of Scope for ASC 606 Net unrealized gain (loss) on equity securities 6 21 44 35 Gain on sale of SBA loans 951 907 1,785 1,682 Mortgage banking income 53 4,149 142 6,645 Increase in cash value of life insurance 333 266 662 491 Real estate lease income 115 117 230 234 Loan servicing and other income 1,029 775 1,237 886 Other noninterest income 2,487 6,235 4,100 9,973 Total noninterest income $ 3,710 $ 7,516 $ 6,492 $ 12,704 |
Mortgage Banking Income (Tables
Mortgage Banking Income (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Mortgage Banking Income | |
Schedule of components of mortgage banking income | Three Months Ended Six Months Ended March 31, March 31, 2024 2023 2024 2023 (In thousands) Origination and sale of mortgage loans (1) $ (991) $ 1,885 $ (1,202) $ 2,617 Mortgage brokerage income 1 167 31 210 Net change in fair value of loans held for sale and interest rate lock commitments 993 1,268 (304) 2,535 Realized and unrealized gains (losses) from Forward sales commitments — (431) 354 (976) Capitalized residential mortgage loan servicing rights — 296 509 438 Net change in fair value of residential mortgage loan servicing rights (6) (1,267) (809) (2,507) Provisions for loan repurchases and indemnifications (37) (161) 19 (489) Net loan servicing income 93 2,392 1,544 4,817 Total mortgage banking income $ 53 $ 4,149 $ 142 $ 6,645 (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 | 6 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | |
Presentation of Interim Information | |||||
Threshold Net Book Balance | $ 500,000,000 | $ 500,000,000 | |||
Allowance for credit losses on off balance sheet credit exposures | 1,623,000 | 1,623,000 | $ 0 | ||
Credit for unfunded lending commitments | $ (259,000) | $ 0 | (317,000) | $ 0 | |
Minimum estimated value of property | $ 250,000 | ||||
Real estate | Commercial | |||||
Presentation of Interim Information | |||||
Term of financing receivables | 5 years | ||||
Real estate | Multifamily | |||||
Presentation of Interim Information | |||||
Maximum loan to value ratio | 80% | 80% | |||
Real estate | Single tenant net lease | |||||
Presentation of Interim Information | |||||
Maximum loan to value ratio | 70% | 70% | |||
Real estate | Land and land development | |||||
Presentation of Interim Information | |||||
Maximum loan to value ratio | 75% | 75% | |||
Consumer | |||||
Presentation of Interim Information | |||||
Term of financing receivables | 15 years | ||||
Maximum loan to value ratio | 90% | 90% | |||
Minimum | Real estate | Residential | |||||
Presentation of Interim Information | |||||
Term of financing receivables | 10 years | ||||
Minimum | Real estate | Commercial | |||||
Presentation of Interim Information | |||||
Amortization term of financing receivable | 15 years | ||||
Minimum | Real estate | Land and land development | |||||
Presentation of Interim Information | |||||
Term of financing receivables | 18 months | ||||
Maximum | Real estate | Residential | |||||
Presentation of Interim Information | |||||
Term of financing receivables | 30 years | ||||
Maximum | Real estate | Commercial | |||||
Presentation of Interim Information | |||||
Amortization term of financing receivable | 20 years | ||||
Maximum | Real estate | Land and land development | |||||
Presentation of Interim Information | |||||
Term of financing receivables | 24 months |
Investment Securities - Amortiz
Investment Securities - Amortized cost of securities available for sale and held to maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 |
Debt securities available for sale: | |||
Amortized Cost | $ 260,715 | $ 265,209 | |
Gross Unrealized Gain | 430 | 34 | |
Gross Unrealized Losses | 22,150 | 37,504 | |
Allowance for Credit Losses | 23 | ||
Fair Value | 238,972 | 227,739 | $ 227,739 |
Debt securities held to maturity: | |||
Amortized Cost | 1,170 | ||
Amortized Cost | 1,300 | ||
Gross Unrealized Gain | 11 | 4 | |
Gross Unrealized Losses | 1 | ||
Fair Value | 1,181 | 1,303 | |
U.S. Treasury bills and notes | |||
Debt securities available for sale: | |||
Amortized Cost | 30,665 | 30,598 | |
Gross Unrealized Losses | 3,695 | 4,649 | |
Fair Value | 26,970 | 25,949 | |
Agency mortgage-backed | |||
Debt securities available for sale: | |||
Amortized Cost | 27,726 | 28,542 | |
Gross Unrealized Losses | 3,212 | 4,274 | |
Fair Value | 24,514 | 24,268 | |
Debt securities held to maturity: | |||
Amortized Cost | 32 | ||
Amortized Cost | 36 | ||
Gross Unrealized Losses | 1 | ||
Fair Value | 32 | 35 | |
Agency CMO | |||
Debt securities available for sale: | |||
Amortized Cost | 13,807 | 14,064 | |
Gross Unrealized Losses | 1,080 | 1,322 | |
Fair Value | 12,727 | 12,742 | |
Privately-issued CMO | |||
Debt securities available for sale: | |||
Amortized Cost | 287 | 424 | |
Gross Unrealized Gain | 2 | 2 | |
Gross Unrealized Losses | 1 | 30 | |
Allowance for Credit Losses | 23 | ||
Fair Value | 265 | 396 | |
Privately-issued ABS | |||
Debt securities available for sale: | |||
Amortized Cost | 367 | 433 | |
Gross Unrealized Gain | 13 | 13 | |
Gross Unrealized Losses | 2 | 3 | |
Fair Value | 378 | 443 | |
SBA certificates | |||
Debt securities available for sale: | |||
Amortized Cost | 11,251 | 11,587 | |
Gross Unrealized Losses | 428 | 842 | |
Fair Value | 10,823 | 10,745 | |
Municipal bonds | |||
Debt securities available for sale: | |||
Amortized Cost | 174,612 | 177,561 | |
Gross Unrealized Gain | 415 | 19 | |
Gross Unrealized Losses | 12,932 | 26,096 | |
Fair Value | 162,095 | 151,484 | |
Debt securities held to maturity: | |||
Amortized Cost | 1,138 | ||
Amortized Cost | 1,264 | ||
Gross Unrealized Gain | 11 | 4 | |
Fair Value | 1,149 | 1,268 | |
Other | |||
Debt securities available for sale: | |||
Amortized Cost | 2,000 | ||
Gross Unrealized Losses | 800 | ||
Fair Value | $ 1,200 | ||
Other | |||
Debt securities available for sale: | |||
Amortized Cost | 2,000 | ||
Gross Unrealized Losses | $ 288 | ||
Fair Value | $ 1,712 |
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 | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 |
Available for Sale - Amortized Cost | |||
Amortized Cost | $ 260,715 | $ 265,209 | |
Available for Sale - Fair Value | |||
Fair Value | 238,972 | 227,739 | $ 227,739 |
Municipal bonds | |||
Available for Sale - Amortized Cost | |||
Due within one year | 4,401 | ||
Due after one year through five years | 8,262 | ||
Due after five years through ten years | 44,344 | ||
Due after ten years | 150,270 | ||
Amortized Cost | 174,612 | 177,561 | |
Available for Sale - Fair Value | |||
Due within one year | 4,367 | ||
Due after one year through five years | 8,140 | ||
Due after five years through ten years | 39,390 | ||
Due after ten years | 138,368 | ||
Fair Value | 162,095 | 151,484 | |
CMO | |||
Available for Sale - Amortized Cost | |||
Amortized Cost | 14,094 | ||
Available for Sale - Fair Value | |||
Fair Value | 12,992 | ||
ABS | |||
Available for Sale - Amortized Cost | |||
Amortized Cost | 367 | ||
Available for Sale - Fair Value | |||
Fair Value | 378 | ||
SBA certificates | |||
Available for Sale - Amortized Cost | |||
Amortized Cost | 11,251 | ||
Amortized Cost | 11,251 | $ 11,587 | |
Available for Sale - Fair Value | |||
Fair Value | 10,823 | ||
Fair Value | 10,823 | $ 10,745 | |
Mortgage-backed securities | |||
Available for Sale - Amortized Cost | |||
Amortized Cost | 27,726 | ||
Available for Sale - Fair Value | |||
Fair Value | $ 24,514 |
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 | Mar. 31, 2024 | Mar. 31, 2023 |
Held to Maturity - Amortized Cost | ||
Amortized Cost | $ 1,170 | |
Held to Maturity - Fair Value | ||
Fair Value | 1,181 | $ 1,303 |
Municipal bonds | ||
Held to Maturity - Amortized Cost | ||
Due within one year | 254 | |
Due after one year through five years | 606 | |
Due after five years through ten years | 278 | |
Amortized Cost | 1,138 | |
Held to Maturity - Fair Value | ||
Due within one year | 256 | |
Due after one year through five years | 612 | |
Due after five years through ten years | 281 | |
Fair Value | 1,149 | $ 1,268 |
Mortgage-backed securities | ||
Held to Maturity - Amortized Cost | ||
Without single maturity date | 32 | |
Held to Maturity - Fair Value | ||
Without single maturity date | $ 32 |
Investment Securities - Investm
Investment Securities - Investment securities with gross unrealized losses (Details) $ in Thousands | Mar. 31, 2024 USD ($) position | Mar. 31, 2023 USD ($) position |
Fair Value | ||
Continuous loss position less than twelve months | $ 20,747 | $ 53,662 |
Continuous loss position more than twelve months | 180,818 | 163,211 |
Total debt securities available for sale | $ 201,565 | $ 216,873 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 23 | 53 |
Continuous loss position more than twelve months | position | 153 | 150 |
Total debt securities available for sale | position | 176 | 203 |
Continuous loss position more than twelve months, held to maturity | position | 1 | |
Total debt securities held to maturity | position | 1 | |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 943 | $ 4,144 |
Continuous loss position more than twelve months | 21,207 | 33,360 |
Total debt securities available for sale | 22,150 | 37,504 |
Fair Value | ||
Continuous loss position more than twelve months, held to maturity | 19 | |
Total debt securities held to maturity | 19 | |
Gross Unrealized Losses | ||
Continuous loss position more than twelve months, held to maturity | 1 | |
Total debt securities held to maturity | 1 | |
U.S. Treasury notes | ||
Fair Value | ||
Continuous loss position less than twelve months | 1,611 | 1,576 |
Continuous loss position more than twelve months | $ 25,359 | $ 24,373 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 5 | 5 |
Continuous loss position more than twelve months | position | 1 | 1 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 26 | $ 49 |
Continuous loss position more than twelve months | 3,669 | 4,600 |
Agency mortgage-backed | ||
Fair Value | ||
Continuous loss position less than twelve months | 55 | 163 |
Continuous loss position more than twelve months | $ 24,105 | $ 23,859 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 1 | 2 |
Continuous loss position more than twelve months | position | 14 | 15 |
Continuous loss position more than twelve months, held to maturity | position | 1 | |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 2 | $ 8 |
Continuous loss position more than twelve months | 3,210 | 4,266 |
Fair Value | ||
Continuous loss position more than twelve months, held to maturity | 19 | |
Gross Unrealized Losses | ||
Continuous loss position more than twelve months, held to maturity | 1 | |
Agency CMO | ||
Fair Value | ||
Continuous loss position less than twelve months | 4,249 | |
Continuous loss position more than twelve months | $ 12,728 | $ 8,493 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 1 | |
Continuous loss position more than twelve months | position | 15 | 14 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 462 | |
Continuous loss position more than twelve months | $ 1,080 | 860 |
Privately-issued CMO | ||
Fair Value | ||
Continuous loss position more than twelve months | $ 244 | $ 375 |
Number of Investment Positions | ||
Continuous loss position more than twelve months | position | 1 | 2 |
Gross Unrealized Losses | ||
Continuous loss position more than twelve months | $ 1 | $ 30 |
Privately-issued ABS | ||
Fair Value | ||
Continuous loss position more than twelve months | $ 165 | $ 212 |
Number of Investment Positions | ||
Continuous loss position more than twelve months | position | 1 | 1 |
Gross Unrealized Losses | ||
Continuous loss position more than twelve months | $ 2 | $ 3 |
SBA certificates | ||
Fair Value | ||
Continuous loss position less than twelve months | 31 | |
Continuous loss position more than twelve months | $ 10,822 | $ 10,714 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 1 | |
Continuous loss position more than twelve months | position | 3 | 2 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 3 | |
Continuous loss position more than twelve months | $ 428 | 839 |
Municipal bonds | ||
Fair Value | ||
Continuous loss position less than twelve months | 17,881 | 45,931 |
Continuous loss position more than twelve months | $ 107,395 | $ 95,185 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 16 | 43 |
Continuous loss position more than twelve months | position | 118 | 115 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 115 | $ 3,334 |
Continuous loss position more than twelve months | 12,817 | 22,762 |
Other | ||
Fair Value | ||
Continuous loss position less than twelve months | $ 1,200 | $ 1,712 |
Number of Investment Positions | ||
Continuous loss position less than twelve months | position | 1 | 1 |
Gross Unrealized Losses | ||
Continuous loss position less than twelve months | $ 800 | $ 288 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 15 Months Ended | ||
Mar. 31, 2024 USD ($) position item | Mar. 31, 2024 USD ($) position item shares | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) position | |
Investment Securities | |||||
Reserves on investment securities | $ 0 | ||||
Provision for credit losses - securities | $ 23,000 | $ 23,000 | |||
Number of securities having credit losses | position | 2 | ||||
Fair Value | $ 238,972,000 | 238,972,000 | $ 227,739,000 | $ 227,739,000 | |
Carrying value of HTM debt securities | 1,170,000 | 1,170,000 | |||
HTM securities nonaccrual | 0 | ||||
HTM securities excluding accrued interest, nonaccrual | $ 0 | $ 0 | |||
Available for sale debt securities in loss position, depreciation percentage | 5.80% | ||||
privately issued collateralized mortgage obligations ABS securities | shares | 5 | ||||
Continuous loss position more than twelve months | position | 153 | 153 | 150 | ||
Percentage of available for sale of investments | 84% | ||||
Proceeds from sales of securities available for sale | $ 0 | ||||
Asset pledged as collateral | Federal reserve discount | |||||
Investment Securities | |||||
Fair Value | $ 61,600,000 | $ 61,600,000 | |||
Asset pledged as collateral | Federal home loan bank borrowings | |||||
Investment Securities | |||||
Available for sale debt securities with total fair value, pledged to secure FHLB borrowings | 53,800,000 | 53,800,000 | $ 52,900,000 | ||
Debt securities | Downgraded Due To Potential Credit Losses | |||||
Investment Securities | |||||
Carrying value of downgraded due to potential credit losses | 508,000 | 508,000 | |||
Debt securities | Downgraded Privately Issued Cmos | |||||
Investment Securities | |||||
Fair market value of downgraded privately issued collateralized mortgage obligations | 488,000 | 488,000 | |||
Privately-issued CMO | |||||
Investment Securities | |||||
Provision for credit losses - securities | 24,000 | 24,000 | |||
Fair Value | $ 265,000 | $ 265,000 | $ 396,000 | ||
Continuous loss position more than twelve months | position | 1 | 1 | 2 | ||
Investments, fair value disclosure | $ 409,000 | $ 409,000 | |||
Total unrealized loss | 25,000 | ||||
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 | 2 | 2 | |||
Privately-issued ABS | |||||
Investment Securities | |||||
Fair Value | $ 378,000 | $ 378,000 | $ 443,000 | ||
Number of debt securities | item | 2 | 2 | |||
Continuous loss position more than twelve months | position | 1 | 1 | 1 | ||
Municipal bonds | |||||
Investment Securities | |||||
Fair Value | $ 162,095,000 | $ 162,095,000 | $ 151,484,000 | ||
Number of debt securities | item | 2 | 2 | |||
Carrying value of HTM debt securities | $ 1,138,000 | $ 1,138,000 | |||
Continuous loss position more than twelve months | position | 118 | 118 | 115 |
Investment Securities - Availab
Investment Securities - Available for sale debt securities - Allowance for credit losses (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | ||
Provision for credit loss expense | $ 23,000 | $ 23,000 |
Ending balance | 23,000 | 23,000 |
Privately-issued CMO | ||
Debt Securities, Available-for-Sale, Allowance for Credit Loss [Roll Forward] | ||
Provision for credit loss expense | 24,000 | 24,000 |
Reductions due to increase in expected cash flows | (1,000) | (1,000) |
Ending balance | $ 23,000 | $ 23,000 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 |
Loans and Allowance for Credit Losses | |||
Total loans | $ 1,900,918 | $ 1,900,918 | |
Total loans | 1,786,194 | ||
Deferred loan origination fees and costs, net | 932 | ||
Deferred loan origination fees and costs, net | 949 | ||
Allowance for credit losses | (19,392) | $ (18,789) | (16,900) |
Allowance for loan losses | (16,900) | ||
Loans, net | 1,882,458 | ||
Loans, net | 1,770,243 | ||
Discounts on SBA loans | 3,400 | 3,300 | |
Residential | |||
Loans and Allowance for Credit Losses | |||
Total loans | 609,182 | 609,182 | |
Total loans | 528,410 | ||
Allowance for credit losses | (6,381) | (5,688) | (4,641) |
Allowance for loan losses | (4,641) | ||
Commercial | |||
Loans and Allowance for Credit Losses | |||
Total loans | 183,522 | 183,522 | |
Total loans | 187,232 | ||
Allowance for credit losses | (1,645) | (1,797) | (1,777) |
Allowance for loan losses | (1,777) | ||
Single tenant net lease | |||
Loans and Allowance for Credit Losses | |||
Total loans | 751,357 | 751,357 | |
Total loans | 757,388 | ||
Allowance for credit losses | (3,764) | (4,080) | (3,810) |
Allowance for loan losses | (3,810) | ||
SBA commercial | |||
Loans and Allowance for Credit Losses | |||
Total loans | 47,008 | 47,008 | |
Total loans | 47,078 | ||
Allowance for credit losses | (2,872) | (2,871) | (1,922) |
Allowance for loan losses | (1,922) | ||
Multifamily | |||
Loans and Allowance for Credit Losses | |||
Total loans | 39,944 | 39,944 | |
Total loans | 34,892 | ||
Allowance for credit losses | (410) | (321) | (268) |
Allowance for loan losses | (268) | ||
Residential Construction | |||
Loans and Allowance for Credit Losses | |||
Total loans | 52,166 | 52,166 | |
Total loans | 24,924 | ||
Allowance for credit losses | (351) | (304) | (434) |
Allowance for loan losses | (434) | ||
Commercial Construction | |||
Loans and Allowance for Credit Losses | |||
Total loans | 20,978 | 20,978 | |
Total loans | 14,588 | ||
Allowance for credit losses | (431) | (384) | (282) |
Allowance for loan losses | (282) | ||
Land and land development | |||
Loans and Allowance for Credit Losses | |||
Total loans | 15,573 | 15,573 | |
Total loans | 17,234 | ||
Allowance for credit losses | (174) | (197) | (307) |
Allowance for loan losses | (307) | ||
SBA commercial business | |||
Loans and Allowance for Credit Losses | |||
Total loans | 18,568 | 18,568 | |
Total loans | 16,939 | ||
Allowance for credit losses | (1,434) | (1,499) | (1,247) |
Allowance for loan losses | (1,247) | ||
Consumer | |||
Loans and Allowance for Credit Losses | |||
Total loans | 38,467 | 38,467 | |
Total loans | 39,915 | ||
Allowance for credit losses | (446) | $ (426) | (498) |
Allowance for loan losses | (498) | ||
Real estate mortgage | Residential | |||
Loans and Allowance for Credit Losses | |||
Total loans | 609,182 | ||
Total loans | 528,410 | ||
Real estate mortgage | Commercial | |||
Loans and Allowance for Credit Losses | |||
Total loans | 183,522 | ||
Total loans | 187,232 | ||
Real estate mortgage | Single tenant net lease | |||
Loans and Allowance for Credit Losses | |||
Total loans | 751,357 | ||
Total loans | 757,388 | ||
Real estate mortgage | SBA commercial | |||
Loans and Allowance for Credit Losses | |||
Total loans | 47,008 | ||
Total loans | 47,078 | ||
Real estate mortgage | Multifamily | |||
Loans and Allowance for Credit Losses | |||
Total loans | 39,944 | ||
Total loans | 34,892 | ||
Real estate mortgage | Residential Construction | |||
Loans and Allowance for Credit Losses | |||
Total loans | 52,166 | ||
Total loans | 24,924 | ||
Real estate mortgage | Commercial Construction | |||
Loans and Allowance for Credit Losses | |||
Total loans | 20,978 | ||
Total loans | 14,588 | ||
Real estate mortgage | Land and land development | |||
Loans and Allowance for Credit Losses | |||
Total loans | 15,573 | ||
Total loans | 17,234 | ||
Commercial business | |||
Loans and Allowance for Credit Losses | |||
Total loans | 124,153 | ||
Total loans | 117,594 | ||
SBA commercial business | |||
Loans and Allowance for Credit Losses | |||
Total loans | 18,568 | ||
Total loans | 16,939 | ||
Consumer | |||
Loans and Allowance for Credit Losses | |||
Total loans | $ 38,467 | ||
Total loans | $ 39,915 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Components of loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | $ 15,638 | $ 15,214 |
Collectively evaluated for impairment | 1,770,980 | |
Loans | 1,786,194 | |
Residential real estate | ||
Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 2,960 | 3,312 |
Collectively evaluated for impairment | 525,098 | |
Loans | 528,410 | |
Commercial real estate | ||
Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 496 | 868 |
Collectively evaluated for impairment | 186,364 | |
Loans | 187,232 | |
Single tenant net lease | ||
Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 757,388 | |
Loans | 757,388 | |
SBA commercial real estate | ||
Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 8,110 | 7,415 |
Collectively evaluated for impairment | 39,663 | |
Loans | 47,078 | |
Multifamily | ||
Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 290 | 318 |
Collectively evaluated for impairment | 34,574 | |
Loans | 34,892 | |
Residential Construction | ||
Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 24,924 | |
Loans | 24,924 | |
Commercial Construction | ||
Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 14,588 | |
Loans | 14,588 | |
Land and land development | ||
Loans as Evaluated for Impairment: | ||
Collectively evaluated for impairment | 17,234 | |
Loans | 17,234 | |
Commercial Business | ||
Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 1,649 | 1,946 |
Collectively evaluated for impairment | 115,648 | |
Loans | 117,594 | |
SBA commercial business | ||
Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | 2,121 | 1,122 |
Collectively evaluated for impairment | 15,817 | |
Loans | 16,939 | |
Consumer | ||
Loans as Evaluated for Impairment: | ||
Individually evaluated for impairment | $ 12 | 233 |
Collectively evaluated for impairment | 39,682 | |
Loans | $ 39,915 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Allowance for credit losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | |
Ending Allowance Balance Attributable to Loans: | |||||
Individually Evaluated for Impairment | $ 563 | ||||
Collectively Evaluated for Impairment | 16,337 | ||||
Allowance for loan losses | 16,900 | ||||
Ending balance | $ 16,458 | $ 16,458 | |||
Activity in Allowance for Loan Losses: | |||||
Beginning balance | $ 18,789 | $ 16,900 | |||
Provisions (Credits) | 713 | 1,183 | |||
Charge-offs | (148) | (261) | (261) | ||
Recoveries | 38 | 141 | |||
Ending balance | 19,392 | 19,392 | 16,900 | ||
Beginning balance | 16,080 | 15,360 | 15,360 | ||
Provisions (Credits) | 372 | 1,356 | |||
Charge-offs | (59) | (388) | |||
Recoveries | 65 | 130 | |||
Ending balance | 16,458 | 16,458 | |||
Adoption of ASC 326 | |||||
Activity in Allowance for Loan Losses: | |||||
Ending balance | 1,429 | 1,429 | |||
Residential real estate | |||||
Ending Allowance Balance Attributable to Loans: | |||||
Individually Evaluated for Impairment | 74 | ||||
Collectively Evaluated for Impairment | 4,567 | ||||
Allowance for loan losses | 4,641 | ||||
Ending balance | 3,537 | 3,537 | |||
Activity in Allowance for Loan Losses: | |||||
Beginning balance | 5,688 | 4,641 | |||
Provisions (Credits) | 686 | 695 | |||
Recoveries | 7 | 8 | |||
Ending balance | 6,381 | 6,381 | 4,641 | ||
Beginning balance | 3,100 | 2,716 | 2,716 | ||
Provisions (Credits) | 424 | 806 | |||
Recoveries | 13 | 15 | |||
Ending balance | 3,537 | 3,537 | |||
Residential real estate | Adoption of ASC 326 | |||||
Activity in Allowance for Loan Losses: | |||||
Ending balance | 1,037 | 1,037 | |||
Commercial real estate | |||||
Ending Allowance Balance Attributable to Loans: | |||||
Individually Evaluated for Impairment | 2 | ||||
Collectively Evaluated for Impairment | 1,775 | ||||
Allowance for loan losses | 1,777 | ||||
Ending balance | 1,783 | 1,783 | |||
Activity in Allowance for Loan Losses: | |||||
Beginning balance | 1,797 | 1,777 | |||
Provisions (Credits) | (152) | (387) | |||
Ending balance | 1,645 | 1,645 | 1,777 | ||
Beginning balance | 1,751 | 1,590 | 1,590 | ||
Provisions (Credits) | 32 | 193 | |||
Ending balance | 1,783 | 1,783 | |||
Commercial real estate | Adoption of ASC 326 | |||||
Activity in Allowance for Loan Losses: | |||||
Ending balance | 255 | 255 | |||
Single tenant net lease | |||||
Ending Allowance Balance Attributable to Loans: | |||||
Collectively Evaluated for Impairment | 3,810 | ||||
Allowance for loan losses | 3,810 | ||||
Ending balance | 3,726 | 3,726 | |||
Activity in Allowance for Loan Losses: | |||||
Beginning balance | 4,080 | 3,810 | |||
Provisions (Credits) | (316) | (268) | |||
Ending balance | 3,764 | 3,764 | 3,810 | ||
Beginning balance | 3,804 | 3,838 | 3,838 | ||
Provisions (Credits) | (78) | (112) | |||
Ending balance | 3,726 | 3,726 | |||
Single tenant net lease | Adoption of ASC 326 | |||||
Activity in Allowance for Loan Losses: | |||||
Ending balance | 222 | 222 | |||
SBA commercial real estate | |||||
Ending Allowance Balance Attributable to Loans: | |||||
Collectively Evaluated for Impairment | 1,922 | ||||
Allowance for loan losses | 1,922 | ||||
Ending balance | 2,607 | 2,607 | |||
Activity in Allowance for Loan Losses: | |||||
Beginning balance | 2,871 | 1,922 | |||
Provisions (Credits) | 379 | ||||
Charge-offs | (2) | (2) | |||
Recoveries | 1 | 62 | |||
Ending balance | 2,872 | 2,872 | 1,922 | ||
Beginning balance | 2,398 | 2,578 | 2,578 | ||
Provisions (Credits) | 212 | 106 | |||
Charge-offs | (3) | (77) | |||
Ending balance | 2,607 | 2,607 | |||
SBA commercial real estate | Adoption of ASC 326 | |||||
Activity in Allowance for Loan Losses: | |||||
Ending balance | 511 | 511 | |||
Multifamily | |||||
Ending Allowance Balance Attributable to Loans: | |||||
Collectively Evaluated for Impairment | 268 | ||||
Allowance for loan losses | 268 | ||||
Ending balance | 326 | 326 | |||
Activity in Allowance for Loan Losses: | |||||
Beginning balance | 321 | 268 | |||
Provisions (Credits) | 89 | 163 | |||
Ending balance | 410 | 410 | 268 | ||
Beginning balance | 252 | 251 | 251 | ||
Provisions (Credits) | 74 | 75 | |||
Ending balance | 326 | 326 | |||
Multifamily | Adoption of ASC 326 | |||||
Activity in Allowance for Loan Losses: | |||||
Ending balance | (21) | (21) | |||
Residential construction | |||||
Ending Allowance Balance Attributable to Loans: | |||||
Collectively Evaluated for Impairment | 434 | ||||
Allowance for loan losses | 434 | ||||
Ending balance | 246 | 246 | |||
Activity in Allowance for Loan Losses: | |||||
Beginning balance | 304 | 434 | |||
Provisions (Credits) | 47 | 143 | |||
Ending balance | 351 | 351 | 434 | ||
Beginning balance | 367 | 305 | 305 | ||
Provisions (Credits) | (121) | (59) | |||
Ending balance | 246 | 246 | |||
Residential construction | Adoption of ASC 326 | |||||
Activity in Allowance for Loan Losses: | |||||
Ending balance | (226) | (226) | |||
Commercial construction | |||||
Ending Allowance Balance Attributable to Loans: | |||||
Collectively Evaluated for Impairment | 282 | ||||
Allowance for loan losses | 282 | ||||
Ending balance | 83 | 83 | |||
Activity in Allowance for Loan Losses: | |||||
Beginning balance | 384 | 282 | |||
Provisions (Credits) | 47 | 106 | |||
Ending balance | 431 | 431 | 282 | ||
Beginning balance | 83 | 107 | 107 | ||
Provisions (Credits) | (24) | ||||
Ending balance | 83 | 83 | |||
Commercial construction | Adoption of ASC 326 | |||||
Activity in Allowance for Loan Losses: | |||||
Ending balance | 43 | 43 | |||
Land and land development | |||||
Ending Allowance Balance Attributable to Loans: | |||||
Collectively Evaluated for Impairment | 307 | ||||
Allowance for loan losses | 307 | ||||
Ending balance | 198 | 198 | |||
Activity in Allowance for Loan Losses: | |||||
Beginning balance | 197 | 307 | |||
Provisions (Credits) | (23) | (59) | |||
Ending balance | 174 | 174 | 307 | ||
Beginning balance | 200 | 212 | 212 | ||
Provisions (Credits) | (2) | (14) | |||
Ending balance | 198 | 198 | |||
Land and land development | Adoption of ASC 326 | |||||
Activity in Allowance for Loan Losses: | |||||
Ending balance | (74) | (74) | |||
Commercial business | |||||
Ending Allowance Balance Attributable to Loans: | |||||
Individually Evaluated for Impairment | 111 | ||||
Collectively Evaluated for Impairment | 1,603 | ||||
Allowance for loan losses | 1,714 | ||||
Ending balance | 1,322 | 1,322 | |||
Activity in Allowance for Loan Losses: | |||||
Beginning balance | 1,222 | 1,714 | |||
Provisions (Credits) | 288 | 291 | |||
Charge-offs | (26) | (26) | (26) | ||
Ending balance | 1,484 | 1,484 | 1,714 | ||
Beginning balance | 1,255 | 1,193 | 1,193 | ||
Provisions (Credits) | 37 | 69 | |||
Recoveries | 30 | 60 | |||
Ending balance | 1,322 | 1,322 | |||
Commercial business | Adoption of ASC 326 | |||||
Activity in Allowance for Loan Losses: | |||||
Ending balance | (495) | (495) | |||
SBA commercial business | |||||
Ending Allowance Balance Attributable to Loans: | |||||
Individually Evaluated for Impairment | 187 | ||||
Collectively Evaluated for Impairment | 1,060 | ||||
Allowance for loan losses | 1,247 | ||||
Ending balance | 2,088 | 2,088 | |||
Activity in Allowance for Loan Losses: | |||||
Beginning balance | 1,499 | 1,247 | |||
Provisions (Credits) | (49) | 23 | |||
Charge-offs | (21) | (24) | (24) | ||
Recoveries | 5 | 28 | |||
Ending balance | 1,434 | 1,434 | 1,247 | ||
Beginning balance | 2,338 | 2,122 | 2,122 | ||
Provisions (Credits) | (262) | 128 | |||
Charge-offs | (190) | ||||
Recoveries | 12 | 28 | |||
Ending balance | 2,088 | 2,088 | |||
SBA commercial business | Adoption of ASC 326 | |||||
Activity in Allowance for Loan Losses: | |||||
Ending balance | 160 | 160 | |||
Consumer | |||||
Ending Allowance Balance Attributable to Loans: | |||||
Individually Evaluated for Impairment | 189 | ||||
Collectively Evaluated for Impairment | 309 | ||||
Allowance for loan losses | 498 | ||||
Ending balance | 542 | 542 | |||
Activity in Allowance for Loan Losses: | |||||
Beginning balance | 426 | 498 | |||
Provisions (Credits) | 96 | 97 | |||
Charge-offs | (101) | (209) | (209) | ||
Recoveries | 25 | 43 | |||
Ending balance | 446 | 446 | 498 | ||
Beginning balance | 532 | 448 | $ 448 | ||
Provisions (Credits) | 56 | 188 | |||
Charge-offs | (56) | (121) | |||
Recoveries | 10 | 27 | |||
Ending balance | $ 542 | $ 542 | |||
Consumer | Adoption of ASC 326 | |||||
Activity in Allowance for Loan Losses: | |||||
Ending balance | $ 17 | $ 17 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | |
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | $ 11,871 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 15,354 | ||
Loans with no related allowance recorded, Average Recorded Investment | $ 14,687 | $ 13,678 | |
Loans with no related allowance recorded, Interest Income Recognized | 77 | 77 | |
Loans with an allowance recorded, Recorded Investment | 3,343 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 3,636 | ||
Loans with an allowance recorded, Related Allowance | 563 | ||
Loans with an allowance recorded, Average Recorded Investment | 2,609 | 3,142 | |
Total, Recorded Investment | 15,214 | ||
Total, Unpaid Principal Balance | 18,990 | ||
Total, Related Allowance | 563 | ||
Total, Average Recorded Investment | 17,296 | 16,820 | |
Total, Interest Income Recognized | 77 | 77 | |
Residential real estate | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 1,989 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 2,139 | ||
Loans with no related allowance recorded, Average Recorded Investment | 3,591 | 3,236 | |
Loans with no related allowance recorded, Interest Income Recognized | 30 | 30 | |
Loans with an allowance recorded, Recorded Investment | 1,323 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 1,328 | ||
Loans with an allowance recorded, Related Allowance | 74 | ||
Total, Recorded Investment | 3,312 | ||
Total, Unpaid Principal Balance | 3,467 | ||
Total, Related Allowance | 74 | ||
Total, Average Recorded Investment | 3,591 | 3,236 | |
Total, Interest Income Recognized | 30 | 30 | |
Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 551 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 627 | ||
Loans with no related allowance recorded, Average Recorded Investment | 969 | 973 | |
Loans with no related allowance recorded, Interest Income Recognized | 13 | 13 | |
Loans with an allowance recorded, Recorded Investment | 317 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 317 | ||
Loans with an allowance recorded, Related Allowance | 2 | ||
Total, Recorded Investment | 868 | ||
Total, Unpaid Principal Balance | 944 | ||
Total, Related Allowance | 2 | ||
Total, Average Recorded Investment | 969 | 973 | |
Total, Interest Income Recognized | 13 | 13 | |
SBA commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 7,415 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 9,397 | ||
Loans with no related allowance recorded, Average Recorded Investment | 7,822 | 7,199 | |
Loans with an allowance recorded, Average Recorded Investment | 1,022 | 1,596 | |
Total, Recorded Investment | 7,415 | ||
Total, Unpaid Principal Balance | 9,397 | ||
Total, Average Recorded Investment | 8,844 | 8,795 | |
Multifamily | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 318 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 362 | ||
Loans with no related allowance recorded, Average Recorded Investment | 384 | 389 | |
Loans with no related allowance recorded, Interest Income Recognized | 10 | 10 | |
Total, Recorded Investment | 318 | ||
Total, Unpaid Principal Balance | 362 | ||
Total, Average Recorded Investment | 384 | 389 | |
Total, Interest Income Recognized | 10 | 10 | |
Commercial business | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Average Recorded Investment | 895 | 993 | |
Loans with no related allowance recorded, Interest Income Recognized | 24 | 24 | |
Loans with an allowance recorded, Average Recorded Investment | 135 | 90 | |
Total, Average Recorded Investment | 1,030 | 1,083 | |
Total, Interest Income Recognized | 24 | 24 | |
SBA commercial business | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 684 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 1,799 | ||
Loans with no related allowance recorded, Average Recorded Investment | 954 | 813 | |
Loans with an allowance recorded, Recorded Investment | 438 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 637 | ||
Loans with an allowance recorded, Related Allowance | 187 | ||
Loans with an allowance recorded, Average Recorded Investment | 1,229 | 1,259 | |
Total, Recorded Investment | 1,122 | ||
Total, Unpaid Principal Balance | 2,436 | ||
Total, Related Allowance | 187 | ||
Total, Average Recorded Investment | 2,183 | 2,072 | |
Consumer | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 44 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 58 | ||
Loans with no related allowance recorded, Average Recorded Investment | 72 | 75 | |
Loans with an allowance recorded, Recorded Investment | 189 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 189 | ||
Loans with an allowance recorded, Related Allowance | 189 | ||
Loans with an allowance recorded, Average Recorded Investment | 223 | 197 | |
Total, Recorded Investment | 233 | ||
Total, Unpaid Principal Balance | 247 | ||
Total, Related Allowance | 189 | ||
Total, Average Recorded Investment | $ 295 | $ 272 | |
Commercial business | |||
Loans and Allowance for Loan Losses | |||
Loans with no related allowance recorded, Recorded Investment | 870 | ||
Loans with no related allowance recorded, Unpaid Principal Balance | 972 | ||
Loans with an allowance recorded, Recorded Investment | 1,076 | ||
Loans with an allowance recorded, Unpaid Principal Balance | 1,165 | ||
Loans with an allowance recorded, Related Allowance | 111 | ||
Total, Recorded Investment | 1,946 | ||
Total, Unpaid Principal Balance | 2,137 | ||
Total, Related Allowance | $ 111 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Amortized cost basis of collateral dependent loans individually evaluated to determine expected credit losses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | $ 15,638 | $ 15,214 |
Real estate | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 11,856 | |
Other | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 3,782 | |
Residential | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 2,960 | 3,312 |
Residential | Real estate | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 2,960 | |
Commercial real estate | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 496 | 868 |
Commercial real estate | Real estate | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 496 | |
SBA commercial real estate | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 8,110 | 7,415 |
SBA commercial real estate | Real estate | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 8,110 | |
Multifamily | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 290 | 318 |
Multifamily | Real estate | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 290 | |
Undisbursed portion of commercial and personal lines of credit | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 1,649 | 1,946 |
Undisbursed portion of commercial and personal lines of credit | Other | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 1,649 | |
SBA commercial business | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 2,121 | 1,122 |
SBA commercial business | Other | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 2,121 | |
Consumer | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | 12 | $ 233 |
Consumer | Other | ||
Loans and Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans individually evaluated | $ 12 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Nonperforming loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Loans and Allowance for Credit Losses | ||
Total Nonaccrual Loans | $ 15,638 | |
Nonaccural Loans with No Allowance for Credit loses | 11,337 | |
Total Nonaccrual Loans | $ 13,948 | |
Residential real estate | ||
Loans and Allowance for Credit Losses | ||
Total Nonaccrual Loans | 2,960 | |
Nonaccural Loans with No Allowance for Credit loses | 1,803 | |
Total Nonaccrual Loans | 2,426 | |
Commercial real estate | ||
Loans and Allowance for Credit Losses | ||
Total Nonaccrual Loans | 496 | |
Nonaccural Loans with No Allowance for Credit loses | 496 | |
Total Nonaccrual Loans | 511 | |
SBA commercial real estate | ||
Loans and Allowance for Credit Losses | ||
Total Nonaccrual Loans | 8,110 | |
Nonaccural Loans with No Allowance for Credit loses | 6,025 | |
Total Nonaccrual Loans | 7,415 | |
Multifamily | ||
Loans and Allowance for Credit Losses | ||
Total Nonaccrual Loans | 290 | |
Nonaccural Loans with No Allowance for Credit loses | 290 | |
Total Nonaccrual Loans | 318 | |
Commercial business | ||
Loans and Allowance for Credit Losses | ||
Total Nonaccrual Loans | 1,649 | |
Nonaccural Loans with No Allowance for Credit loses | 1,470 | |
Total Nonaccrual Loans | 1,946 | |
SBA commercial business | ||
Loans and Allowance for Credit Losses | ||
Total Nonaccrual Loans | 2,121 | |
Nonaccural Loans with No Allowance for Credit loses | 1,241 | |
Total Nonaccrual Loans | 1,099 | |
Consumer | ||
Loans and Allowance for Credit Losses | ||
Total Nonaccrual Loans | 12 | |
Nonaccural Loans with No Allowance for Credit loses | $ 12 | |
Total Nonaccrual Loans | $ 233 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Aging of recorded investment in past due loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Loans and Allowance for Loan Losses | ||
Total loans | $ 1,900,918 | $ 1,900,918 |
Total loans | 1,786,194 | |
30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 3,857 | 3,921 |
60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 1,450 | 199 |
90+ Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 7,989 | 6,499 |
Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 13,296 | 10,619 |
Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 1,887,622 | 1,775,575 |
Residential real estate | ||
Loans and Allowance for Loan Losses | ||
Total loans | 609,182 | 609,182 |
Total loans | 528,410 | |
Residential real estate | 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 2,764 | 2,715 |
Residential real estate | 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 1,398 | 132 |
Residential real estate | 90+ Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 2,304 | 1,818 |
Residential real estate | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 6,466 | 4,665 |
Residential real estate | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 602,716 | 523,745 |
Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Total loans | 183,522 | 183,522 |
Total loans | 187,232 | |
Commercial real estate | 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 254 | 23 |
Commercial real estate | 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 62 | |
Commercial real estate | 90+ Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 496 | |
Commercial real estate | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 750 | 85 |
Commercial real estate | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 182,772 | 187,147 |
Single tenant net lease | ||
Loans and Allowance for Loan Losses | ||
Total loans | 751,357 | 751,357 |
Total loans | 757,388 | |
Single tenant net lease | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 751,357 | 757,388 |
SBA commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Total loans | 47,008 | 47,008 |
Total loans | 47,078 | |
SBA commercial real estate | 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 359 | 764 |
SBA commercial real estate | 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 49 | |
SBA commercial real estate | 90+ Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 4,422 | 3,877 |
SBA commercial real estate | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 4,830 | 4,641 |
SBA commercial real estate | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 42,178 | 42,437 |
Multifamily | ||
Loans and Allowance for Loan Losses | ||
Total loans | 39,944 | 39,944 |
Total loans | 34,892 | |
Multifamily | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 39,944 | 34,892 |
Residential construction | ||
Loans and Allowance for Loan Losses | ||
Total loans | 52,166 | 52,166 |
Total loans | 24,924 | |
Residential construction | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 52,166 | 24,924 |
Commercial construction | ||
Loans and Allowance for Loan Losses | ||
Total loans | 20,978 | 20,978 |
Total loans | 14,588 | |
Commercial construction | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 20,978 | 14,588 |
Land and land development | ||
Loans and Allowance for Loan Losses | ||
Total loans | 15,573 | 15,573 |
Total loans | 17,234 | |
Land and land development | 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 63 | 40 |
Land and land development | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 63 | 40 |
Land and land development | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 15,510 | 17,194 |
Commercial business | ||
Loans and Allowance for Loan Losses | ||
Total loans | 124,153 | 124,153 |
Total loans | 117,594 | |
Commercial business | 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 14 | 112 |
Commercial business | 90+ Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 37 | 86 |
Commercial business | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 51 | 198 |
Commercial business | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 124,102 | 117,396 |
SBA commercial business | ||
Loans and Allowance for Loan Losses | ||
Total loans | 18,568 | 18,568 |
Total loans | 16,939 | |
SBA commercial business | 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 213 | 130 |
SBA commercial business | 90+ Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 718 | 682 |
SBA commercial business | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 931 | 812 |
SBA commercial business | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 17,637 | 16,127 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Total loans | 38,467 | 38,467 |
Total loans | 39,915 | |
Consumer | 30 to 59 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 190 | 137 |
Consumer | 60 to 89 Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 3 | 5 |
Consumer | 90+ Days Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 12 | 36 |
Consumer | Total Past Due | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | 205 | 178 |
Consumer | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivable recorded investment | $ 38,262 | $ 39,737 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Loans categorized into each risk rating based on fiscal year of origination as well as current period gross charge-offs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | |
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | $ 116,103 | ||
2023 | 340,316 | ||
2022 | 465,960 | ||
2021 | 141,625 | ||
2020 | 148,150 | ||
Prior | 279,669 | ||
Revolving Loans | 409,095 | ||
Total | $ 1,900,918 | $ 1,900,918 | 1,900,918 |
YTD gross charge-offs, 2021 | 27 | ||
YTD gross charge-offs, Prior | 234 | ||
YTD gross charge-offs, Total | 148 | 261 | 261 |
Pass | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 116,103 | ||
2023 | 338,705 | ||
2022 | 465,390 | ||
2021 | 141,100 | ||
2020 | 146,294 | ||
Prior | 268,173 | ||
Revolving Loans | 408,782 | ||
Total | 1,884,547 | ||
Special Mention | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2022 | 229 | ||
Total | 229 | ||
Substandard | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2023 | 1,611 | ||
2022 | 341 | ||
2021 | 525 | ||
2020 | 1,856 | ||
Prior | 9,762 | ||
Revolving Loans | 313 | ||
Total | 14,408 | ||
Doubtful | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
Prior | 1,652 | ||
Total | 1,652 | ||
Loss | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
Prior | 82 | ||
Total | 82 | ||
Residential | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 54,231 | ||
2023 | 35,378 | ||
2022 | 46,873 | ||
2021 | 19,949 | ||
2020 | 11,787 | ||
Prior | 58,545 | ||
Revolving Loans | 382,419 | ||
Total | 609,182 | 609,182 | 609,182 |
Residential | Pass | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 54,231 | ||
2023 | 35,267 | ||
2022 | 46,873 | ||
2021 | 19,671 | ||
2020 | 11,787 | ||
Prior | 58,071 | ||
Revolving Loans | 382,113 | ||
Total | 608,013 | ||
Residential | Substandard | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2023 | 111 | ||
2021 | 278 | ||
Prior | 455 | ||
Revolving Loans | 306 | ||
Total | 1,150 | ||
Residential | Doubtful | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
Prior | 19 | ||
Total | 19 | ||
Commercial real estate | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 6,652 | ||
2023 | 26,960 | ||
2022 | 64,255 | ||
2021 | 22,853 | ||
2020 | 8,169 | ||
Prior | 54,633 | ||
Total | 183,522 | 183,522 | 183,522 |
Commercial real estate | Pass | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 6,652 | ||
2023 | 26,464 | ||
2022 | 64,255 | ||
2021 | 22,853 | ||
2020 | 8,146 | ||
Prior | 54,460 | ||
Total | 182,830 | ||
Commercial real estate | Substandard | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2023 | 496 | ||
2020 | 23 | ||
Prior | 173 | ||
Total | 692 | ||
Single tenant net lease | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 18,655 | ||
2023 | 151,778 | ||
2022 | 277,141 | ||
2021 | 72,168 | ||
2020 | 101,196 | ||
Prior | 130,419 | ||
Total | 751,357 | 751,357 | 751,357 |
Single tenant net lease | Pass | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 18,655 | ||
2023 | 151,778 | ||
2022 | 277,141 | ||
2021 | 72,168 | ||
2020 | 101,196 | ||
Prior | 130,419 | ||
Total | 751,357 | ||
SBA commercial real estate | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 2,944 | ||
2023 | 8,319 | ||
2022 | 5,809 | ||
2021 | 5,929 | ||
2020 | 9,157 | ||
Prior | 14,813 | ||
Revolving Loans | 37 | ||
Total | 47,008 | 47,008 | 47,008 |
YTD gross charge-offs, Prior | 2 | ||
YTD gross charge-offs, Total | 2 | 2 | |
SBA commercial real estate | Pass | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 2,944 | ||
2023 | 8,319 | ||
2022 | 5,418 | ||
2021 | 5,786 | ||
2020 | 7,381 | ||
Prior | 6,757 | ||
Revolving Loans | 37 | ||
Total | 36,642 | ||
SBA commercial real estate | Special Mention | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2022 | 229 | ||
Total | 229 | ||
SBA commercial real estate | Substandard | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2022 | 162 | ||
2021 | 143 | ||
2020 | 1,776 | ||
Prior | 6,371 | ||
Total | 8,452 | ||
SBA commercial real estate | Doubtful | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
Prior | 1,624 | ||
Total | 1,624 | ||
SBA commercial real estate | Loss | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
Prior | 61 | ||
Total | 61 | ||
Multifamily | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 5,000 | ||
2023 | 2,610 | ||
2022 | 7,534 | ||
2021 | 5,524 | ||
2020 | 11,956 | ||
Prior | 7,320 | ||
Total | 39,944 | 39,944 | 39,944 |
Multifamily | Pass | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 5,000 | ||
2023 | 2,610 | ||
2022 | 7,534 | ||
2021 | 5,524 | ||
2020 | 11,956 | ||
Prior | 7,030 | ||
Total | 39,654 | ||
Multifamily | Substandard | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
Prior | 290 | ||
Total | 290 | ||
Residential construction | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 4,038 | ||
2023 | 26,616 | ||
2022 | 21,512 | ||
Total | 52,166 | 52,166 | 52,166 |
Residential construction | Pass | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 4,038 | ||
2023 | 26,616 | ||
2022 | 21,512 | ||
Total | 52,166 | ||
Commercial construction | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2023 | 16,789 | ||
2022 | 4,189 | ||
Total | 20,978 | 20,978 | 20,978 |
Commercial construction | Pass | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2023 | 16,789 | ||
2022 | 4,189 | ||
Total | 20,978 | ||
Land and land development | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 432 | ||
2023 | 7,083 | ||
2022 | 5,410 | ||
2021 | 1,074 | ||
2020 | 401 | ||
Prior | 1,173 | ||
Total | 15,573 | 15,573 | 15,573 |
Land and land development | Pass | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 432 | ||
2023 | 7,083 | ||
2022 | 5,410 | ||
2021 | 1,074 | ||
2020 | 401 | ||
Prior | 1,173 | ||
Total | 15,573 | ||
Commercial business | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 17,910 | ||
2023 | 57,407 | ||
2022 | 28,741 | ||
2021 | 12,289 | ||
2020 | 906 | ||
Prior | 6,900 | ||
Total | 124,153 | 124,153 | 124,153 |
YTD gross charge-offs, Total | 26 | 26 | 26 |
Commercial business | Pass | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 17,910 | ||
2023 | 56,408 | ||
2022 | 28,562 | ||
2021 | 12,245 | ||
2020 | 902 | ||
Prior | 6,477 | ||
Total | 122,504 | ||
Commercial business | Substandard | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2023 | 999 | ||
2022 | 179 | ||
2021 | 44 | ||
2020 | 4 | ||
Prior | 423 | ||
Total | 1,649 | ||
SBA commercial business | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 3,589 | ||
2023 | 2,625 | ||
2022 | 732 | ||
2021 | 1,285 | ||
2020 | 4,272 | ||
Prior | 5,690 | ||
Revolving Loans | 375 | ||
Total | 18,568 | 18,568 | 18,568 |
YTD gross charge-offs, Prior | 24 | ||
YTD gross charge-offs, Total | 21 | 24 | 24 |
SBA commercial business | Pass | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 3,589 | ||
2023 | 2,625 | ||
2022 | 732 | ||
2021 | 1,225 | ||
2020 | 4,219 | ||
Prior | 3,610 | ||
Revolving Loans | 375 | ||
Total | 16,375 | ||
SBA commercial business | Substandard | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2021 | 60 | ||
2020 | 53 | ||
Prior | 2,050 | ||
Total | 2,163 | ||
SBA commercial business | Doubtful | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
Prior | 9 | ||
Total | 9 | ||
SBA commercial business | Loss | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
Prior | 21 | ||
Total | 21 | ||
Consumer | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 2,652 | ||
2023 | 4,751 | ||
2022 | 3,764 | ||
2021 | 554 | ||
2020 | 306 | ||
Prior | 176 | ||
Revolving Loans | 26,264 | ||
Total | 38,467 | 38,467 | 38,467 |
YTD gross charge-offs, 2021 | 1 | ||
YTD gross charge-offs, Prior | 208 | ||
YTD gross charge-offs, Total | $ 101 | $ 209 | 209 |
Consumer | Pass | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2024 | 2,652 | ||
2023 | 4,746 | ||
2022 | 3,764 | ||
2021 | 554 | ||
2020 | 306 | ||
Prior | 176 | ||
Revolving Loans | 26,257 | ||
Total | 38,455 | ||
Consumer | Substandard | |||
Loans Amortized Cost Basis by Origination Fiscal Year End | |||
2023 | 5 | ||
Revolving Loans | 7 | ||
Total | $ 12 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Recorded investment in loans by risk category (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Loans and Allowance for Credit Losses | |
Loans | $ 1,786,194 |
Pass | |
Loans and Allowance for Credit Losses | |
Loans | 1,770,145 |
Special Mention | |
Loans and Allowance for Credit Losses | |
Loans | 318 |
Substandard | |
Loans and Allowance for Credit Losses | |
Loans | 14,044 |
Doubtful | |
Loans and Allowance for Credit Losses | |
Loans | 1,687 |
Residential real estate | |
Loans and Allowance for Credit Losses | |
Loans | 528,410 |
Residential real estate | Pass | |
Loans and Allowance for Credit Losses | |
Loans | 525,735 |
Residential real estate | Substandard | |
Loans and Allowance for Credit Losses | |
Loans | 2,653 |
Residential real estate | Doubtful | |
Loans and Allowance for Credit Losses | |
Loans | 22 |
Commercial real estate | |
Loans and Allowance for Credit Losses | |
Loans | 187,232 |
Commercial real estate | Pass | |
Loans and Allowance for Credit Losses | |
Loans | 186,520 |
Commercial real estate | Substandard | |
Loans and Allowance for Credit Losses | |
Loans | 712 |
Single tenant net lease | |
Loans and Allowance for Credit Losses | |
Loans | 757,388 |
Single tenant net lease | Pass | |
Loans and Allowance for Credit Losses | |
Loans | 757,388 |
SBA commercial real estate | |
Loans and Allowance for Credit Losses | |
Loans | 47,078 |
SBA commercial real estate | Pass | |
Loans and Allowance for Credit Losses | |
Loans | 39,092 |
SBA commercial real estate | Special Mention | |
Loans and Allowance for Credit Losses | |
Loans | 278 |
SBA commercial real estate | Substandard | |
Loans and Allowance for Credit Losses | |
Loans | 6,083 |
SBA commercial real estate | Doubtful | |
Loans and Allowance for Credit Losses | |
Loans | 1,625 |
Multifamily | |
Loans and Allowance for Credit Losses | |
Loans | 34,892 |
Multifamily | Pass | |
Loans and Allowance for Credit Losses | |
Loans | 34,574 |
Multifamily | Substandard | |
Loans and Allowance for Credit Losses | |
Loans | 318 |
Residential construction | |
Loans and Allowance for Credit Losses | |
Loans | 24,924 |
Residential construction | Pass | |
Loans and Allowance for Credit Losses | |
Loans | 24,924 |
Commercial construction | |
Loans and Allowance for Credit Losses | |
Loans | 14,588 |
Commercial construction | Pass | |
Loans and Allowance for Credit Losses | |
Loans | 14,588 |
Land and land development | |
Loans and Allowance for Credit Losses | |
Loans | 17,234 |
Land and land development | Pass | |
Loans and Allowance for Credit Losses | |
Loans | 17,234 |
Commercial business | |
Loans and Allowance for Credit Losses | |
Loans | 117,594 |
Commercial business | Pass | |
Loans and Allowance for Credit Losses | |
Loans | 115,647 |
Commercial business | Special Mention | |
Loans and Allowance for Credit Losses | |
Loans | 40 |
Commercial business | Substandard | |
Loans and Allowance for Credit Losses | |
Loans | 1,907 |
SBA commercial business | |
Loans and Allowance for Credit Losses | |
Loans | 16,939 |
SBA commercial business | Pass | |
Loans and Allowance for Credit Losses | |
Loans | 14,572 |
SBA commercial business | Substandard | |
Loans and Allowance for Credit Losses | |
Loans | 2,327 |
SBA commercial business | Doubtful | |
Loans and Allowance for Credit Losses | |
Loans | 40 |
Consumer | |
Loans and Allowance for Credit Losses | |
Loans | 39,915 |
Consumer | Pass | |
Loans and Allowance for Credit Losses | |
Loans | 39,871 |
Consumer | Substandard | |
Loans and Allowance for Credit Losses | |
Loans | $ 44 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Recorded investment in troubled debt restructurings by class of loan and accrual status (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Loans and Allowance for Loan Losses | |
Accruing | $ 2,446 |
Nonaccrual | 2,413 |
Total | 4,859 |
Residential real estate | |
Loans and Allowance for Loan Losses | |
Accruing | 997 |
Total | 997 |
Commercial real estate | |
Loans and Allowance for Loan Losses | |
Accruing | 373 |
Nonaccrual | 542 |
Total | 915 |
SBA commercial real estate | |
Loans and Allowance for Loan Losses | |
Nonaccrual | 1,623 |
Total | 1,623 |
Multifamily | |
Loans and Allowance for Loan Losses | |
Accruing | 335 |
Total | 335 |
Commercial business | |
Loans and Allowance for Loan Losses | |
Accruing | 741 |
Total | 741 |
SBA commercial business | |
Loans and Allowance for Loan Losses | |
Nonaccrual | 248 |
Total | $ 248 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Changes in carrying value accounted for fair value of the loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Loans and Allowance for Loan Losses | ||||
Balance, beginning of period | $ 2,950 | |||
Balance, end of period | $ 2,950 | 2,950 | ||
Small Business Administration Loans | ||||
Loans and Allowance for Loan Losses | ||||
Balance, beginning of period | 2,907 | $ 3,301 | 2,950 | $ 3,790 |
Servicing rights capitalized | 278 | 261 | 535 | 459 |
Amortization | (137) | (195) | (280) | (390) |
Direct write-offs | (98) | (170) | (315) | (311) |
Change in valuation allowance | 530 | 60 | 179 | |
Balance, end of period | 2,950 | 3,727 | 2,950 | 3,727 |
Mortgage Servicing Rights. | ||||
Loans and Allowance for Loan Losses | ||||
Balance, beginning of period | 709 | 62,165 | 59,768 | 63,263 |
Servicing rights capitalized | 296 | 509 | 438 | |
Direct write-offs | (946) | (59,464) | ||
Loan repayments | (6) | (1,041) | (672) | (2,064) |
Gain (Loss) on sale of MSRs | 243 | (4) | ||
Changes in valuation model inputs or assumptions | (226) | (137) | (443) | |
Balance, end of period | 61,194 | 61,194 | ||
Nonresidential MSR | ||||
Loans and Allowance for Loan Losses | ||||
Balance, beginning of period | 95 | 132 | 101 | 141 |
Amortization | (6) | (8) | (12) | (17) |
Direct write-offs | (11) | (11) | ||
Balance, end of period | $ 78 | $ 124 | $ 78 | $ 124 |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Key assumptions used to estimate the fair value of the loans (Details) - Mortgage Servicing Rights. | 12 Months Ended |
Sep. 30, 2023 | |
Maximum | |
Discount rate | 14.50% |
Prepayment rate | 85.82% |
Minimum | |
Discount rate | 9.44% |
Prepayment rate | 5% |
Weighted Average | |
Discount rate | 9.51% |
Prepayment rate | 6.82% |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 18 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Sep. 30, 2023 | |
Loans and Allowance for Loan Losses | ||||||
Mortgage loans in process of foreclosure amount | $ 539,000 | $ 539,000 | $ 539,000 | |||
Interest income related to nonaccrual loans | 0 | 0 | ||||
Amount of new and modification FDMs | 0 | |||||
Loans and leases receivable impaired commitment to lend | $ 1,000 | $ 1,000 | ||||
Financing receivable allowance for credit losses, Write-downs | 59,000 | 388,000 | ||||
Provision for credit losses - loans | 713,000 | 372,000 | 1,183,000 | 1,356,000 | ||
Impaired financing receivable, Unpaid principal balance | $ 18,990,000 | |||||
Commercial real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Impaired financing receivable, Unpaid principal balance | 944,000 | |||||
Residential real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Real estate properties owned | 444,000,000 | |||||
Impaired financing receivable, Unpaid principal balance | 3,467,000 | |||||
SBA Lending | ||||||
Loans and Allowance for Loan Losses | ||||||
Servicing assets valuation allowance | 0 | 0 | 0 | 60,000 | ||
SBA | ||||||
Loans and Allowance for Loan Losses | ||||||
Unpaid principal balance of loans | 217,600,000 | 238,400,000 | 217,600,000 | 238,400,000 | 217,600,000 | 209,600,000 |
SBA | Bank Servicing | ||||||
Loans and Allowance for Loan Losses | ||||||
Revenue from Contract with Customer | 2,000 | 14,000 | 8,000 | 34,000 | ||
Net servicing income | 458,000 | 564,000 | 922,000 | 1,100,000 | ||
Troubled Debt Restructuring | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans and leases receivable allowance covered | 111,000 | 111,000 | ||||
Financing receivable allowance for credit losses, Write-downs | 3,000 | 6,000 | ||||
Mortgage Servicing Rights. | ||||||
Loans and Allowance for Loan Losses | ||||||
Unpaid principal balance of loans | 0 | 0 | 0 | |||
Impaired financing receivable, Unpaid principal balance | 4,770,000,000 | |||||
Revenue from Contract with Customer | 93,000 | 2,400,000 | 1,500,000 | 4,800,000 | ||
Escrow balances maintained with foregoing loan servicing and other liabilities | 0 | 0 | 0 | 47,900,000 | ||
Nonresidential MSR | ||||||
Loans and Allowance for Loan Losses | ||||||
Unpaid principal balance of loans | 40,300,000 | 44,000,000 | 40,300,000 | 44,000,000 | 40,300,000 | 40,400,000 |
Revenue from Contract with Customer | 1,000 | $ 5,000 | 4,000 | $ 14,000 | ||
Servicing assets valuation allowance | $ 0 | $ 0 | $ 0 | $ 0 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Deposits | ||
Noninterest-bearing demand deposits | $ 196,239 | $ 242,237 |
NOW accounts | 312,394 | 336,446 |
Money market accounts | 337,939 | 323,739 |
Savings accounts | 160,668 | 170,073 |
Retail time deposits | 232,031 | 170,980 |
Brokered & reciprocal time deposits | 548,175 | 438,319 |
Total deposits | $ 1,787,446 | $ 1,681,794 |
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 | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Basic: | ||||
Net income attributable to First Savings Financial Group, Inc. available to common shareholders | $ 4,927 | $ 3,724 | $ 5,847 | $ 6,595 |
Shares: | ||||
Weighted average common shares outstanding, basic | 6,832,130 | 6,842,897 | 6,828,017 | 6,879,805 |
Net income per common share, basic | $ 0.72 | $ 0.54 | $ 0.86 | $ 0.96 |
Diluted: | ||||
Net income attributable to First Savings Financial Group, Inc. available to common shareholders | $ 4,927 | $ 3,724 | $ 5,847 | $ 6,595 |
Shares: | ||||
Weighted average common shares outstanding, basic | 6,832,130 | 6,842,897 | 6,828,017 | 6,879,805 |
Add: Dilutive effect of outstanding options | 27,481 | 38,599 | 21,911 | 46,472 |
Weighted average common shares outstanding, as adjusted | 6,859,611 | 6,881,496 | 6,849,928 | 6,926,277 |
Net income per common share, diluted | $ 0.72 | $ 0.54 | $ 0.85 | $ 0.95 |
Supplemental Disclosure for N_4
Supplemental Disclosure for Net Income Per Share - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Restricted stock | ||||
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE | ||||
Antidilutive restricted stock awards | 0 | 0 | 0 | 0 |
Stock options | ||||
SUPPLEMENTAL DISCLOSURE FOR EARNINGS PER SHARE | ||||
Antidilutive restricted stock awards | 341,572 | 273,489 | 341,572 | 269,889 |
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 | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | $ 238,972 | $ 227,739 | $ 227,739 |
Residential mortgage loans held for sale - fair value option elected | 2,979 | 24,692 | |
Derivative assets (included in other assets) | 923 | ||
Residential mortgage loan servicing rights, at fair value | 59,768 | ||
Derivative liabilities (included in other liabilities) | 196 | ||
U.S. Treasury bills and notes | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 26,970 | 25,949 | |
Agency mortgage-backed | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 24,514 | 24,268 | |
Agency CMO | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 12,727 | 12,742 | |
Privately-issued CMO | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 265 | 396 | |
Privately-issued ABS | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 378 | 443 | |
SBA certificates | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 10,823 | 10,745 | |
Municipal bonds | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 162,095 | 151,484 | |
Other | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | $ 1,712 | ||
Fair Value, Measurements, Recurring | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 238,972 | 227,739 | |
Residential mortgage loans held for sale - fair value option elected | 2,979 | 24,692 | |
Equity securities (included in other assets) | 204 | 160 | |
Derivative assets (included in other assets) | 923 | ||
Equity securities (included in other assets) | 204 | 160 | |
Residential mortgage loan servicing rights, at fair value | 59,768 | ||
Derivative liabilities (included in other liabilities) | 196 | ||
Fair Value, Measurements, Recurring | U.S. Treasury bills and notes | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 26,970 | 25,949 | |
Fair Value, Measurements, Recurring | Agency mortgage-backed | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 24,514 | 24,268 | |
Fair Value, Measurements, Recurring | Agency CMO | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 12,727 | 12,742 | |
Fair Value, Measurements, Recurring | Privately-issued CMO | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 265 | 396 | |
Fair Value, Measurements, Recurring | Privately-issued ABS | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 378 | 443 | |
Fair Value, Measurements, Recurring | SBA certificates | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 10,823 | 10,745 | |
Fair Value, Measurements, Recurring | Municipal bonds | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 162,095 | 151,484 | |
Fair Value, Measurements, Recurring | Other | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 1,200 | 1,712 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Total impaired loans | 2,842 | 1,508 | |
SBA loan servicing rights | 2,950 | ||
Fair Value, Measurements, Nonrecurring | Residential real estate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Total impaired loans | 793 | 306 | |
Fair Value, Measurements, Nonrecurring | SBA commercial real estate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Total impaired loans | 1,480 | ||
Fair Value, Measurements, Nonrecurring | Commercial business | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Total impaired loans | 137 | 965 | |
Fair Value, Measurements, Nonrecurring | SBA commercial business | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Total impaired loans | 432 | 237 | |
Level 1 | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 26,970 | 25,949 | |
Equity securities (included in other assets) | 204 | 160 | |
Equity securities (included in other assets) | 204 | 160 | |
Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 26,970 | 25,949 | |
Equity securities (included in other assets) | 204 | 160 | |
Equity securities (included in other assets) | 204 | 160 | |
Level 1 | Fair Value, Measurements, Recurring | U.S. Treasury bills and notes | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 26,970 | 25,949 | |
Level 2 | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 210,448 | 201,330 | |
Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 210,448 | 201,330 | |
Residential mortgage loans held for sale - fair value option elected | 2,979 | 24,692 | |
Derivative assets (included in other assets) | 471 | ||
Derivative liabilities (included in other liabilities) | 12 | ||
Level 2 | Fair Value, Measurements, Recurring | Agency mortgage-backed | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 24,514 | 24,268 | |
Level 2 | Fair Value, Measurements, Recurring | Agency CMO | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 12,727 | 12,742 | |
Level 2 | Fair Value, Measurements, Recurring | Privately-issued CMO | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 20 | 46 | |
Level 2 | Fair Value, Measurements, Recurring | Privately-issued ABS | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 299 | 364 | |
Level 2 | Fair Value, Measurements, Recurring | SBA certificates | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 10,793 | 10,714 | |
Level 2 | Fair Value, Measurements, Recurring | Municipal bonds | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 162,095 | 151,484 | |
Level 2 | Fair Value, Measurements, Recurring | Other | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 1,712 | ||
Level 3 | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 1,554 | 460 | |
Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 1,554 | 460 | |
Derivative assets (included in other assets) | 452 | ||
Residential mortgage loan servicing rights, at fair value | 59,768 | ||
Derivative liabilities (included in other liabilities) | 184 | ||
Level 3 | Fair Value, Measurements, Recurring | Privately-issued CMO | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 245 | 350 | |
Level 3 | Fair Value, Measurements, Recurring | Privately-issued ABS | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 79 | 79 | |
Level 3 | Fair Value, Measurements, Recurring | SBA certificates | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 30 | 31 | |
Level 3 | Fair Value, Measurements, Recurring | Other | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024 | 1,200 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Total impaired loans | 2,842 | 1,508 | |
SBA loan servicing rights | 2,950 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | Residential real estate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Total impaired loans | 793 | 306 | |
Level 3 | Fair Value, Measurements, Nonrecurring | SBA commercial real estate | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Total impaired loans | 1,480 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | Commercial business | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Total impaired loans | 137 | 965 | |
Level 3 | Fair Value, Measurements, Nonrecurring | SBA commercial business | |||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Total impaired loans | $ 432 | $ 237 |
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 | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Beginning balance | $ 362 | $ 268 | $ (238) |
Unrealized gains (losses) recognized in earnings, net of settlements | 986 | $ (268) | 1,586 |
Ending balance | $ 1,348 | $ 1,348 |
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 | Mar. 31, 2024 | Sep. 30, 2023 |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 0% | |
Pull-through rate | Minimum | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 54% | |
Pull-through rate | Maximum | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 95% | |
Pull-through rate | Weighted Average | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 81% | |
Direct costs to close | Minimum | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 0% | |
Direct costs to close | Maximum | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 5% | |
Direct costs to close | Weighted Average | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Fixed interest rate | 0.62% |
Fair Value Measurements and D_6
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Summary of significant unobservable inputs used in the fair value measurement of impaired loans (Details) | Mar. 31, 2024 | Sep. 30, 2023 |
Estimated market rate | Minimum | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Collateral dependent loans | 10 | 10 |
Estimated market rate | Maximum | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Collateral dependent loans | 50 | 50 |
Estimated market rate | Weighted Average | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Collateral dependent loans | (15.49) | (14.22) |
Estimated costs to sell | Minimum | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Collateral dependent loans | 6 | 6 |
Estimated costs to sell | Maximum | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Collateral dependent loans | 6 | 6 |
Estimated costs to sell | Weighted Average | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Collateral dependent loans | (6) | (6) |
Fair Value Measurements and D_7
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Summary of significant unobservable inputs used in the fair value measurement of SBA loan servicing rights measured at fair value (Details) - Level 3 | Mar. 31, 2024 | Sep. 30, 2023 |
SBA loan servicing rights | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
SBA loan servicing rights | 0 | |
SBA loan servicing rights | Estimated market rate | Maximum [Member] | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
SBA loan servicing rights | 25 | |
SBA loan servicing rights | Estimated market rate | Minimum [Member] | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
SBA loan servicing rights | 10.25 | |
SBA loan servicing rights | Estimated market rate | Weighted Average | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
SBA loan servicing rights | (13.79) | |
SBA loan servicing rights | Prepayment speed | Maximum [Member] | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
SBA loan servicing rights | 32.85 | |
SBA loan servicing rights | Prepayment speed | Minimum [Member] | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
SBA loan servicing rights | 8.60 | |
SBA loan servicing rights | Prepayment speed | Weighted Average | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
SBA loan servicing rights | (16.91) | |
Other investment security | Estimated market rate | Maximum [Member] | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Investment security | 10 | |
Other investment security | Estimated market rate | Minimum [Member] | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Investment security | 9 | |
Other investment security | Estimated market rate | Weighted Average | ||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Investment security | (9.50) |
Fair Value Measurements and D_8
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Reconciliation of available for sale investment securities measured at fair value on recurring basis using significant unobservable inputs (Level 3) (Details) - Other - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||
Transfers from Level 2 to Level 3 | $ 1,200 | $ 1,200 |
Ending balance | $ 1,200 | $ 1,200 |
Fair Value Measurements and D_9
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments - Additional information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) item | Mar. 31, 2023 USD ($) | Sep. 30, 2023 item | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||||
Derivative assets and liabilities held | $ 0 | $ 1,300,000 | $ 0 | $ 1,300,000 | |
Impairment charges on nonresidential mortgage loan servicing rights | 0 | 0 | $ 0 | 0 | |
Number of loans were 90 days or more past due | item | 0 | 0 | |||
Level 3 | |||||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||||
Transfers from loans to other real estate owned | 0 | $ 0 | |||
Collateral Dependent Loans | |||||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||||
Impairment charges on loan | $ 403,000 | 364,000 | 1,000,000 | 564,000 | |
SBA commercial | |||||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||||
Impairment charges on loan | $ 530,000 | $ 60,000 | $ 179,000 |
Fair Value Measurements and _10
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 | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | |||
Residential mortgage loans held for sale Aggregate Fair Value | $ 2,979 | $ 24,692 | |
Residential mortgage loans held for sale Aggregate Principal Balance | 24,382 | $ 2,919 | |
Residential mortgage loans held for sale Difference | $ 60 | $ 309 |
Fair Value Measurements and _11
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 | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||||
Total gains and interest included in earnings | $ 1,066 | $ 671 | $ 330 | $ 1,767 |
Interest income | ||||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||||
Interest income | 73 | 389 | 366 | 817 |
Mortgage Banking | ||||
Fair Value Measurements and Disclosures about Fair Value of Financial Instruments | ||||
Gains (losses) - included in mortgage banking income | $ 993 | $ 282 | $ (36) | $ 950 |
Fair Value Measurements and _12
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 | 12 Months Ended | ||
Sep. 30, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Financial assets: | |||
Cash and due from banks | $ 18,014 | $ 16,114 | |
Interest-bearing deposits with banks | 12,831 | 46,855 | |
Fair Value | 227,739 | 238,972 | $ 227,739 |
Securities held to maturity | 1,300 | ||
Debt securities held to maturity | 1,170 | ||
Loans, net | 1,770,243 | ||
SBA loan servicing rights | 2,950 | 2,950 | |
Financial liabilities: | |||
Noninterest-bearing demand deposits | 242,237 | 196,239 | |
Interest-bearing deposits | 1,439,557 | 1,591,207 | |
Borrowings from FHLB | 363,183 | 315,000 | |
Accrued interest payable | 8,926 | 11,281 | |
Advance payments by borrowers for taxes and insurance | 1,027 | 867 | |
Level 1 | |||
Financial assets: | |||
Cash and due from banks | 18,014 | 16,114 | |
Interest-bearing deposits with banks | 12,831 | 46,855 | |
Fair Value | 25,949 | 26,970 | |
Equity securities (included in other assets) | 160 | 204 | |
Financial liabilities: | |||
Noninterest-bearing demand deposits | 242,237 | 196,239 | |
Level 2 | |||
Financial assets: | |||
Interest-bearing time deposits | 490 | 490 | |
Fair Value | 201,330 | 210,448 | |
Securities held to maturity | 38 | ||
Debt securities held to maturity | 35 | ||
Residential mortgage loans held for sale | 24,692 | 2,979 | |
SBA loans held for sale | 22,591 | ||
Accrued interest receivable | 10,161 | 10,874 | |
Derivative assets (included in other assets) | 471 | ||
Financial liabilities: | |||
Borrowings from FHLB | 356,257 | 311,346 | |
Subordinated note | 46,940 | 47,510 | |
Accrued interest payable | 8,926 | 11,281 | |
Advance payments by borrowers for taxes and insurance | 1,027 | 867 | |
Derivative liabilities (included in other liabilities) | 12 | ||
Level 3 | |||
Financial assets: | |||
Fair Value | 460 | 1,554 | |
Securities held to maturity | 1,265 | ||
Debt securities held to maturity | 1,146 | ||
SBA loans held for sale | 17,703 | ||
Loans, net | 1,651,115 | ||
Loans, net | 1,780,928 | ||
SBA loan servicing rights | 2,950 | 2,950 | |
Residential mortgage loan servicing rights | 59,768 | ||
Nonresidential mortgage loan servicing rights | 101 | 78 | |
Derivative assets (included in other assets) | 452 | ||
Financial liabilities: | |||
Interest-bearing deposits | 1,435,083 | 1,588,902 | |
Derivative liabilities (included in other liabilities) | 184 | ||
Estimate of fair value measurement | |||
Financial assets: | |||
Cash and due from banks | 18,014 | 16,114 | |
Interest-bearing deposits with banks | 12,831 | 46,855 | |
Interest-bearing time deposits | 490 | 490 | |
Fair Value | 227,739 | 238,972 | |
Securities held to maturity | 1,300 | ||
Debt securities held to maturity | 1,170 | ||
Residential mortgage loans held for sale | 24,692 | 2,979 | |
SBA loans held for sale | 21,163 | 16,129 | |
Loans, net | 1,770,243 | ||
Loans, net | 1,882,458 | ||
FRB and FHLB stock | 24,939 | 24,986 | |
Accrued interest receivable | 10,161 | 10,874 | |
SBA loan servicing rights | 2,950 | 2,950 | |
Residential mortgage loan servicing rights | 59,768 | ||
Nonresidential mortgage loan servicing rights | 101 | 78 | |
Derivative assets (included in other assets) | 923 | ||
Equity securities (included in other assets) | 160 | 204 | |
Financial liabilities: | |||
Noninterest-bearing demand deposits | 242,237 | 196,239 | |
Interest-bearing deposits | 1,439,557 | 1,591,207 | |
Borrowings from FHLB | 363,183 | 315,000 | |
Subordinated note | 48,444 | 48,523 | |
Accrued interest payable | 8,926 | 11,281 | |
Advance payments by borrowers for taxes and insurance | 1,027 | $ 867 | |
Derivative liabilities (included in other liabilities) | $ 196 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Oct. 06, 2008 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | |
Employee Stock Ownership Plan | ||||||
Total ESOP shares | 203,363 | 274,568 | 274,568 | 293,695 | ||
Compensation expense recognized | $ 0 | $ 0 | $ 0 | $ 0 | ||
Employee stock ownership plan (per share) | $ 10 |
Stock Based Compensation Plan_2
Stock Based Compensation Plans - Fair Value Of Options Granted (Details) - $ / shares | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock Based Compensation Plans | ||
Expected dividend yield | 3.74% | 2.93% |
Risk-free interest rate | 4.44% | 3.94% |
Expected volatility | 28.40% | 27.70% |
Expected life of options | 6 years 10 months 24 days | 6 years 9 months 18 days |
Weighted average fair value at grant date | $ 3.55 | $ 5.71 |
Stock Based Compensation Plan_3
Stock Based Compensation Plans - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Number of Shares | |
Outstanding at beginning of year | shares | 408,669 |
Granted | shares | 62,983 |
Forfeited or expired | shares | (5,100) |
Outstanding at end of year | shares | 466,552 |
Exercisable at end of year | shares | 276,039 |
Weighted Average Exercise Price | |
Outstanding at beginning of year | $ / shares | $ 20.79 |
Granted | $ / shares | 15.10 |
Forfeited or expired | $ / shares | 17.66 |
Outstanding at end of year | $ / shares | 20.05 |
Exercisable at end of year | $ / shares | $ 19.38 |
Weighted Average Remaining Contractual Term (Years) | |
Outstanding at end of period | 5 years |
Exercisable at end of period | 4 years 9 months 18 days |
Aggregate Intrinsic Value | |
Outstanding at end of period | $ | $ 423 |
Exercisable at end of period | $ | $ 423 |
Stock Based Compensation Plan_4
Stock Based Compensation Plans - Non vested Restricted Shares (Details) - Restricted stock - $ / shares | 1 Months Ended | 6 Months Ended | |
Nov. 30, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Number of Shares | |||
Nonvested, Beginning Balance | 54,916 | ||
Granted | 19,475 | 19,475 | |
Vested | (16,158) | (16,408) | |
Forfeited | (800) | ||
Nonvested, Ending Balance | 57,433 | ||
Weighted Average Grant Date Fair Value | |||
Nonvested | $ 24.73 | ||
Granted | 15.10 | ||
Vested | 24.23 | ||
Forfeited | 22.49 | ||
Nonvested | $ 21.64 |
Stock Based Compensation Plan_5
Stock Based Compensation Plans - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Stock Based Compensation Plans | |||||
Vesting period | 5 years | ||||
Terms of award | P10Y | ||||
Equity Incentive Plan 2016 | |||||
Stock Based Compensation Plans | |||||
Aggregated number of shares in stock options | 264,000 | 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 | 356,058 | |||
Number of stock options granted | 267,043 | ||||
Common stock available under incentive plan | 10,600 | ||||
2021 Plan | Maximum | |||||
Stock Based Compensation Plans | |||||
Vesting period | 5 years | ||||
2021 Plan | Minimum | |||||
Stock Based Compensation Plans | |||||
Vesting period | 1 year | ||||
Employee Stock Option | |||||
Stock Based Compensation Plans | |||||
Vesting period | 3 years 6 months | ||||
Intrinsic value of stock options exercised | $ 0 | $ 0 | |||
Compensation expense | 78,000 | 71,000 | $ 153,000 | $ 154,000 | |
Unrecognized compensation expenses related to nonvested stock options | $ 989,000 | 989,000 | |||
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 | 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 | 6,010 | ||||
Restricted stock | |||||
Stock Based Compensation Plans | |||||
Number of restricted shares granted | 19,475 | 19,475 | |||
Compensation expense | $ 98,000 | $ 96,000 | $ 195,000 | $ 199,000 | |
Unrecognized compensation expenses related to nonvested stock options | $ 1,100,000 | $ 1,100,000 | |||
weighted average period of compensation expense (in years) | 3 years 4 months 9 days | ||||
Restricted shares vested | 16,158 | 16,408 | |||
Fair value of restricted shares | $ 244,000 | $ 369,000 | |||
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 | 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 | 4,590 | ||||
Stock options | |||||
Stock Based Compensation Plans | |||||
Number of stock options granted | 62,983 | ||||
Stock options | Restricted stock | |||||
Stock Based Compensation Plans | |||||
Number of equity incentive plans | 3 | 3 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Derivative Financial Instruments | ||
Notional Amount | $ 0 | $ 133,040 |
Asset Derivatives | 923 | |
Liability Derivatives | 196 | |
Interest rate lock commitments | ||
Derivative Financial Instruments | ||
Notional Amount | 67,040 | |
Asset Derivatives | 452 | |
Liability Derivatives | 184 | |
Forward mortgage loan sale contracts | ||
Derivative Financial Instruments | ||
Notional Amount | 66,000 | |
Asset Derivatives | 471 | |
Liability Derivatives | $ 12 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Income (loss) related to derivative financial instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Financial Instruments | |||
Income (loss) related to derivative financial instruments | $ 555 | $ 86 | $ 609 |
Interest rate lock commitments | |||
Derivative Financial Instruments | |||
Income (loss) related to derivative financial instruments | 986 | (268) | 1,585 |
Forward mortgage loan sale contracts | |||
Derivative Financial Instruments | |||
Income (loss) related to derivative financial instruments | $ (431) | $ 354 | $ (976) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional information (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 |
Derivative Financial Instruments | ||
Cash collateral derivative counterparty obligations | $ 0 | $ 1.5 |
Regulatory Capital (Details)
Regulatory Capital (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Sep. 30, 2023 USD ($) |
Consolidated | ||
Regulatory Capital | ||
Total capital (to risk weighted assets) Actual Amount | $ 240,099 | $ 230,735 |
Tier 1 capital (to risk-weighted assets) Actual Amount | 173,087 | 165,391 |
Common equity tier 1 capital (to risk-weighted assets) Actual Amount | 173,087 | 165,391 |
Tier 1 capital (to average adjusted total assets) Actual Amount | $ 173,087 | $ 165,391 |
Total capital (to risk weighted assets) Actual Ratio | 0.1246 | 0.1147 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 0.0898 | 0.0822 |
Common equity tier 1 capital (to risk-weighted assets) Actual Ratio | 0.0898% | 0.0822% |
Tier 1 capital (to average adjusted total assets) Actual Ratio | 0.0736 | 0.0724 |
Total capital (to risk weighted assets) Minimum For Capital Adequacy Purposes Amount | $ 154,168 | $ 160,965 |
Tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Amount | 115,626 | 120,724 |
Common equity tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Amount | 86,720 | 90,543 |
Tier 1 capital (to average adjusted total assets) Minimum For Capital Adequacy Purposes Amount | $ 94,107 | $ 91,375 |
Total capital (to risk weighted assets) Minimum For Capital Adequacy Purposes Ratio | 0.0800 | 0.0800 |
Tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Ratio | 0.0600 | 0.0600 |
Common equity tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Ratio | 0.045% | 0.045% |
Tier 1 capital (to average adjusted total assets) Minimum For Capital Adequacy Purposes Ratio | 0.0400 | 0.0400 |
Bank | ||
Regulatory Capital | ||
Total capital (to risk weighted assets) Actual Amount | $ 235,099 | $ 226,461 |
Tier 1 capital (to risk-weighted assets) Actual Amount | 216,610 | 209,561 |
Common equity tier 1 capital (to risk-weighted assets) Actual Amount | 216,610 | 209,561 |
Tier 1 capital (to average adjusted total assets) Actual Amount | $ 216,610 | $ 209,561 |
Total capital (to risk weighted assets) Actual Ratio | 0.1220 | 0.1127 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 0.1124 | 0.1042 |
Common equity tier 1 capital (to risk-weighted assets) Actual Ratio | 0.1124% | 0.1042% |
Tier 1 capital (to average adjusted total assets) Actual Ratio | 0.0921 | 0.0917 |
Total capital (to risk weighted assets) Minimum For Capital Adequacy Purposes Amount | $ 154,133 | $ 160,822 |
Tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Amount | 115,600 | 120,616 |
Common equity tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Amount | 86,700 | 90,462 |
Tier 1 capital (to average adjusted total assets) Minimum For Capital Adequacy Purposes Amount | $ 94,090 | $ 91,406 |
Total capital (to risk weighted assets) Minimum For Capital Adequacy Purposes Ratio | 0.0800 | 0.0800 |
Tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Ratio | 0.0600 | 0.0600 |
Common equity tier 1 capital (to risk-weighted assets) Minimum For Capital Adequacy Purposes Ratio | 0.045% | 0.045% |
Tier 1 capital (to average adjusted total assets) Minimum For Capital Adequacy Purposes Ratio | 0.0400 | 0.0400 |
Total capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 192,666 | $ 201,027 |
Tier 1 capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 154,133 | 160,822 |
Common equity tier 1 capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 125,233 | 130,668 |
Tier 1 capital (to average adjusted total assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 117,613 | $ 114,259 |
Total capital (to risk weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.1000 | 0.1000 |
Tier 1 capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.0800 | 0.0800 |
Common equity tier 1 capital (to risk-weighted assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.065% | 0.065% |
Tier 1 capital (to average adjusted total assets) Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 0.0500 | 0.0500 |
Regulatory Capital - Additional
Regulatory Capital - Additional information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2024 | Sep. 30, 2023 | |
Regulatory Capital | ||
Percentage of capital conservation buffer | 2.50% | 2.50% |
Maximum amount to attain consolidated capital requirements | $ 3,000,000 | |
Amount deducted from capital for interest rate risk | $ 0 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) - Cumulative effect period of adoption adjustment member - ASU 2016-02 | Oct. 01, 2023 USD ($) |
Recent Accounting Pronouncements | |
Net of tax decrease to retained earnings | $ 2,500,000 |
Increase in allowance for credit losses | 1,400,000 |
Increase in allowance for credit losses for unfunded commitments | 1,900,000 |
Increase in deferred tax assets | $ 859,000 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements - Impact of adopting ASC 326 (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Oct. 01, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | $ 16,458 | $ 16,080 | $ 15,360 | |||
Liabilities | ||||||
Allowance for credit losses on off balance sheet credit exposures | $ 1,623 | $ 0 | ||||
Residential real estate | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 3,537 | 3,100 | 2,716 | |||
Commercial real estate | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 1,783 | 1,751 | 1,590 | |||
Single tenant net lease | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 3,726 | 3,804 | 3,838 | |||
SBA commercial real estate | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 2,607 | 2,398 | 2,578 | |||
Multifamily | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 326 | 252 | 251 | |||
Residential construction | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 246 | 367 | 305 | |||
Commercial construction | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 83 | 83 | 107 | |||
Land and land development | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 198 | 200 | 212 | |||
Commercial business | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 1,322 | 1,255 | 1,193 | |||
SBA commercial business | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 2,088 | 2,338 | 2,122 | |||
Consumer | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | $ 542 | $ 532 | $ 448 | |||
Accounting Standards Update 2022-02 (ASC 326) | As Reported under ASC 326 | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | $ 18,329 | |||||
Net deferred tax assets | 19,817 | |||||
Liabilities | ||||||
Allowance for credit losses on off balance sheet credit exposures | 1,940 | |||||
Accounting Standards Update 2022-02 (ASC 326) | As Reported under ASC 326 | Residential real estate | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 5,678 | |||||
Accounting Standards Update 2022-02 (ASC 326) | As Reported under ASC 326 | Commercial real estate | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 2,032 | |||||
Accounting Standards Update 2022-02 (ASC 326) | As Reported under ASC 326 | Single tenant net lease | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 4,032 | |||||
Accounting Standards Update 2022-02 (ASC 326) | As Reported under ASC 326 | SBA commercial real estate | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 2,433 | |||||
Accounting Standards Update 2022-02 (ASC 326) | As Reported under ASC 326 | Multifamily | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 247 | |||||
Accounting Standards Update 2022-02 (ASC 326) | As Reported under ASC 326 | Residential construction | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 208 | |||||
Accounting Standards Update 2022-02 (ASC 326) | As Reported under ASC 326 | Commercial construction | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 325 | |||||
Accounting Standards Update 2022-02 (ASC 326) | As Reported under ASC 326 | Land and land development | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 233 | |||||
Accounting Standards Update 2022-02 (ASC 326) | As Reported under ASC 326 | Commercial business | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 1,219 | |||||
Accounting Standards Update 2022-02 (ASC 326) | As Reported under ASC 326 | SBA commercial business | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 1,407 | |||||
Accounting Standards Update 2022-02 (ASC 326) | As Reported under ASC 326 | Consumer | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 515 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Pre-ASC 326 | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 16,900 | |||||
Net deferred tax assets | 18,859 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Pre-ASC 326 | Residential real estate | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 4,641 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Pre-ASC 326 | Commercial real estate | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 1,777 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Pre-ASC 326 | Single tenant net lease | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 3,810 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Pre-ASC 326 | SBA commercial real estate | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 1,922 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Pre-ASC 326 | Multifamily | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 268 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Pre-ASC 326 | Residential construction | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 434 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Pre-ASC 326 | Commercial construction | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 282 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Pre-ASC 326 | Land and land development | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 307 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Pre-ASC 326 | Commercial business | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 1,714 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Pre-ASC 326 | SBA commercial business | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 1,247 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Pre-ASC 326 | Consumer | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 498 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Impact of ASC 326 Adoption | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 1,429 | |||||
Net deferred tax assets | 859 | |||||
Liabilities | ||||||
Allowance for credit losses on off balance sheet credit exposures | 1,940 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Impact of ASC 326 Adoption | Residential real estate | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 1,037 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Impact of ASC 326 Adoption | Commercial real estate | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 255 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Impact of ASC 326 Adoption | Single tenant net lease | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 222 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Impact of ASC 326 Adoption | SBA commercial real estate | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 511 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Impact of ASC 326 Adoption | Multifamily | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | (21) | |||||
Accounting Standards Update 2022-02 (ASC 326) | Impact of ASC 326 Adoption | Residential construction | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | (226) | |||||
Accounting Standards Update 2022-02 (ASC 326) | Impact of ASC 326 Adoption | Commercial construction | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 43 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Impact of ASC 326 Adoption | Land and land development | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | (74) | |||||
Accounting Standards Update 2022-02 (ASC 326) | Impact of ASC 326 Adoption | Commercial business | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | (495) | |||||
Accounting Standards Update 2022-02 (ASC 326) | Impact of ASC 326 Adoption | SBA commercial business | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | 160 | |||||
Accounting Standards Update 2022-02 (ASC 326) | Impact of ASC 326 Adoption | Consumer | ||||||
Allowance for credit losses ("ACL") on loans | ||||||
Allowance for credit losses on loans | $ 17 |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
SEGMENT REPORTING | |||||
Number of operating segments | segment | 3 | ||||
Net interest income | $ 14,338,000 | $ 14,912,000 | $ 28,451,000 | $ 31,173,000 | |
Provision (credit) for credit losses - loans | 713,000 | 372,000 | 1,183,000 | 1,356,000 | |
Credit for unfunded lending commitments | (259,000) | 0 | (317,000) | 0 | |
Provision for credit losses - securities | 23,000 | 23,000 | |||
Net interest income after provision | 13,861,000 | 14,540,000 | 27,562,000 | 29,817,000 | |
Net gains on sales of loans, SBA | 951,000 | 907,000 | 1,785,000 | 1,682,000 | |
Mortgage banking income (loss) | 53,000 | 4,149,000 | 142,000 | 6,645,000 | |
Noninterest income | 3,710,000 | 7,516,000 | 6,492,000 | 12,704,000 | |
Noninterest expense | 11,778,000 | 17,999,000 | 27,817,000 | 35,510,000 | |
Income (loss) before taxes | 5,793,000 | 4,057,000 | 6,237,000 | 7,011,000 | |
Income tax expense (benefit) | 866,000 | 333,000 | 390,000 | 416,000 | |
Segment profit (loss) | 4,927,000 | 3,724,000 | 5,847,000 | 6,595,000 | |
Non-cash items: | |||||
Depreciation and amortization | 593,000 | 572,000 | 1,201,000 | 1,262,000 | |
Segment assets | 2,364,983,000 | 2,239,606,000 | 2,364,983,000 | 2,239,606,000 | $ 2,288,854,000 |
Core Banking | |||||
SEGMENT REPORTING | |||||
Net interest income | 13,469,000 | 13,632,000 | 26,579,000 | 28,640,000 | |
Provision (credit) for credit losses - loans | 762,000 | 422,000 | 781,000 | 1,123,000 | |
Credit for unfunded lending commitments | (113,000) | (180,000) | |||
Provision for credit losses - securities | 23,000 | 23,000 | |||
Net interest income after provision | 12,797,000 | 13,210,000 | 25,955,000 | 27,517,000 | |
Mortgage banking income (loss) | 53,000 | 2,000 | 142,000 | (8,000) | |
Noninterest income | 2,537,000 | 1,733,000 | 4,316,000 | 3,661,000 | |
Noninterest expense | 10,093,000 | 10,651,000 | 23,986,000 | 20,448,000 | |
Income (loss) before taxes | 5,241,000 | 4,292,000 | 6,285,000 | 10,730,000 | |
Income tax expense (benefit) | 729,000 | 401,000 | 384,000 | 1,347,000 | |
Segment profit (loss) | 4,512,000 | 3,891,000 | 5,901,000 | 9,383,000 | |
Non-cash items: | |||||
Depreciation and amortization | 592,000 | 541,000 | 1,198,000 | 1,199,000 | |
Segment assets | 2,279,791,000 | 2,051,149,000 | 2,279,791,000 | 2,051,149,000 | |
SBA Lending | |||||
SEGMENT REPORTING | |||||
Net interest income | 869,000 | 1,093,000 | 1,872,000 | 2,088,000 | |
Provision (credit) for credit losses - loans | (49,000) | (50,000) | 402,000 | 233,000 | |
Credit for unfunded lending commitments | (146,000) | (137,000) | |||
Net interest income after provision | 1,064,000 | 1,143,000 | 1,607,000 | 1,855,000 | |
Net gains on sales of loans, SBA | 951,000 | 907,000 | 1,785,000 | 1,682,000 | |
Noninterest income | 1,173,000 | 1,636,000 | 2,176,000 | 2,390,000 | |
Noninterest expense | 1,685,000 | 2,662,000 | 3,831,000 | 4,586,000 | |
Income (loss) before taxes | 552,000 | 117,000 | (48,000) | (341,000) | |
Income tax expense (benefit) | 137,000 | 20,000 | 6,000 | (87,000) | |
Segment profit (loss) | 415,000 | 97,000 | (54,000) | (254,000) | |
Non-cash items: | |||||
Depreciation and amortization | 1,000 | 6,000 | 3,000 | 11,000 | |
Segment assets | $ 85,192,000 | 83,506,000 | $ 85,192,000 | 83,506,000 | |
Mortgage Banking | |||||
SEGMENT REPORTING | |||||
Net interest income | 187,000 | 445,000 | |||
Net interest income after provision | 187,000 | 445,000 | |||
Mortgage banking income (loss) | 4,147,000 | 6,653,000 | |||
Noninterest income | 4,147,000 | 6,653,000 | |||
Noninterest expense | 4,686,000 | 10,476,000 | |||
Income (loss) before taxes | (352,000) | (3,378,000) | |||
Income tax expense (benefit) | (88,000) | (844,000) | |||
Segment profit (loss) | (264,000) | (2,534,000) | |||
Non-cash items: | |||||
Depreciation and amortization | 25,000 | 52,000 | |||
Segment assets | $ 104,951,000 | $ 104,951,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contracts with Customers | ||||
Revenue from contracts with customers | $ 1,223 | $ 1,281 | $ 2,392 | $ 2,731 |
Net unrealized gain on equity securities | 6 | 21 | 44 | 35 |
Gain on sale of SBA loans | 951 | 907 | 1,785 | 1,682 |
Mortgage banking income | 53 | 4,149 | 142 | 6,645 |
Increase in cash value of life insurance | 333 | 266 | 662 | 491 |
Real estate lease income | 115 | 117 | 230 | 234 |
Loan servicing and other income | 1,029 | 775 | 1,237 | 886 |
Other noninterest income | 2,487 | 6,235 | 4,100 | 9,973 |
Total noninterest income | 3,710 | 7,516 | 6,492 | 12,704 |
Service charges on deposit accounts | ||||
Revenue from Contracts with Customers | ||||
Revenue from contracts with customers | 387 | 471 | 860 | 1,029 |
ATM and interchange fees | ||||
Revenue from Contracts with Customers | ||||
Revenue from contracts with customers | 585 | 586 | 1,034 | 1,325 |
Commission income | ||||
Revenue from Contracts with Customers | ||||
Revenue from contracts with customers | 220 | 189 | 442 | 317 |
Other | ||||
Revenue from Contracts with Customers | ||||
Revenue from contracts with customers | $ 31 | $ 35 | $ 56 | $ 60 |
Mortgage Banking Income (Detail
Mortgage Banking Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Mortgage Banking Income | ||||
Origination and sale of mortgage loans (1) | $ (991) | $ 1,885 | $ (1,202) | $ 2,617 |
Mortgage brokerage income | 1 | 167 | 31 | 210 |
Net change in fair value of loans held for sale and interest rate lock commitments | 993 | 1,268 | (304) | 2,535 |
Realized and unrealized gains (losses) from Forward sales commitments | (431) | 354 | (976) | |
Capitalized residential mortgage loan servicing rights | 296 | 509 | 438 | |
Net change in fair value of residential mortgage loan servicing rights | (6) | (1,267) | (809) | (2,507) |
Provisions for loan repurchases and indemnifications | (37) | (161) | 19 | (489) |
Net loan servicing income | 93 | 2,392 | 1,544 | 4,817 |
Total mortgage banking income | $ 53 | $ 4,149 | $ 142 | $ 6,645 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |