| Loans Receivable And Allowance For Credit Losses | LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES Loans receivable, net at September 30, 2021 and 2020 is summarized as follows: 2021 2020 (Dollars in thousands) One- to four-family: Originated $ 3,956,064 $ 3,937,310 Correspondent purchased 2,003,477 2,101,082 Bulk purchased 173,662 208,427 Construction 39,142 34,593 Total 6,172,345 6,281,412 Commercial: Commercial real estate 676,908 626,588 Commercial and industrial 66,497 97,614 Construction 85,963 105,458 Total 829,368 829,660 Consumer: Home equity 86,274 103,838 Other 8,086 10,086 Total 94,360 113,924 Total loans receivable 7,096,073 7,224,996 Less: ACL 19,823 31,527 Discounts/unearned loan fees 29,556 29,190 Premiums/deferred costs (34,448) (38,572) $ 7,081,142 $ 7,202,851 As of September 30, 2021 and 2020, the Bank serviced loans for others aggregating $63.4 million and $87.2 million, respectively. Such loans are not included in the accompanying consolidated balance sheets. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and foreclosure processing. Loan servicing income includes servicing fees withheld from investors and certain charges collected from borrowers, such as late payment fees. The Bank held borrowers' escrow balances on loans serviced for others of $1.4 million and $1.7 million as of September 30, 2021 and 2020, respectively. Lending Practices and Underwriting Standards - Originating and purchasing one- to four-family loans is the Bank's primary lending business. The Bank also originates consumer loans primarily secured by one- to four-family residential properties and originates and participates in commercial loans. The Bank has a loan concentration in one- to four-family loans and a geographic concentration of these loans in Kansas and Missouri. One- to four-family loans - Full documentation to support an applicant's credit and income, and sufficient funds to cover all applicable fees and reserves at closing, are required on all loans. Generally, loans are underwritten according to the "ability to repay" and "qualified mortgage" standards, as issued by the Consumer Financial Protection Bureau. Properties securing one- to four-family loans are appraised by either staff appraisers or fee appraisers, both of which are independent of the loan origination function. The underwriting standards for loans purchased from correspondent lenders are generally similar to the Bank's internal underwriting standards. The underwriting of loans purchased from correspondent lenders on a loan-by-loan basis is performed by the Bank's underwriters. The Bank also originates owner-occupied construction-to-permanent loans secured by one- to four-family residential real estate. Construction draw requests and the supporting documentation are reviewed and approved by designated personnel. The Bank also performs regular documented inspections of the construction project to ensure the funds are being used for the intended purpose and the project is being completed according to the plans and specifications provided. Commercial loans - The Bank's commercial real estate and commercial construction loans are originated by the Bank or are in participation with a lead bank. When underwriting a commercial real estate or commercial construction loan, several factors are considered, such as the income producing potential of the property, cash equity provided by the borrower, the financial strength of the borrower, managerial expertise of the borrower or tenant, feasibility studies, lending experience with the borrower and the marketability of the property. For commercial real estate and commercial construction participation loans, the Bank performs the same underwriting procedures as if the loan was being originated by the Bank. At the time of origination, LTV ratios on commercial real estate loans generally do not exceed 85% of the appraised value of the property securing the loans and the minimum debt service coverage ratio is generally 1.15. For commercial construction loans, LTV ratios generally do not exceed 80% of the projected appraised value of the property securing the loans and the minimum debt service coverage ratio is generally 1.15, but it applies to the projected cash flows, and the borrower must have successful experience with the construction and operation of properties similar to the subject property. Appraisals on properties securing these loans are performed by independent state certified fee appraisers. The Bank's commercial and industrial loans are generally made in the Bank's market areas and are underwritten on the basis of the borrower's ability to service the debt from income. With the exception of Paycheck Protection Program loans, which are unsecured but are generally guaranteed by the U.S. Small Business Administration, working capital loans are primarily collateralized by short-term assets whereas term loans are primarily collateralized by long-term assets. In general, commercial and industrial loans involve more credit risk than commercial real estate loans due to the type of collateral securing these loans. As a result of these additional complexities, variables and risks, these loans require more thorough underwriting and servicing than other types of loans. Consumer loans - The Bank offers a variety of secured consumer loans, including home equity loans and lines of credit, home improvement loans, vehicle loans, and loans secured by deposits. The Bank also originates a very limited amount of unsecured consumer loans. The majority of the consumer loan portfolio is comprised of home equity lines of credit for which the Bank also has the first mortgage or the home equity line of credit is in the first lien position. The underwriting standards for consumer loans include a determination of an applicant's payment history on other debts and an assessment of an applicant's ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of an applicant is a primary consideration, the underwriting process also includes a comparison of the value of the security in relation to the proposed loan amount. Credit Quality Indicators - Based on the Bank's lending emphasis and underwriting standards, management has segmented the loan portfolio into three segments: (1) one- to four-family; (2) consumer; and (3) commercial. See discussion regarding the credit risks for these loan segments in "Note 1. Summary of Significant Accounting Policies - Allowance for Credit Losses on Loans Receivable." These segments are further divided into classes for purposes of providing disaggregated credit quality information about the loan portfolio. The classes are: one- to four-family - originated, one- to four-family - correspondent purchased, one- to four-family - bulk purchased, consumer - home equity, consumer - other, commercial - commercial real estate, and commercial - commercial and industrial. One- to four-family construction loans are included in the originated class and commercial construction loans are included in the commercial real estate class. As part of the on-going monitoring of the credit quality of the Company's loan portfolio, management tracks certain credit quality indicators including trends related to loan classification and delinquency status. Loan Classification - In accordance with the Bank's asset classification policy, management regularly reviews the problem loans in the Bank's portfolio to determine whether any loans require classification. Loan classifications are defined as follows: • Special mention - These loans are performing loans on which known information about the collateral pledged or the possible credit problems of the borrower(s) have caused management to have doubts as to the ability of the borrower(s) to comply with present loan repayment terms and which may result in the future inclusion of such loans in the nonaccrual loan categories. • Substandard - A loan is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans include those characterized by the distinct possibility the Bank will sustain some loss if the deficiencies are not corrected. • Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses present make collection or liquidation in full on the basis of currently existing facts and conditions and values highly questionable and improbable. • Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as assets on the books is not warranted. The following table sets forth, as of September 30, 2021, the amortized cost of loans by class of financing receivable, year of origination or most recent credit decision, and loan classification. All revolving lines of credit are presented separately, regardless of origination year. Loans classified as doubtful or loss are individually evaluated for loss. At September 30, 2021, there were no loans classified as doubtful, and all loans classified as loss were fully charged-off. In the table below, certain commercial loans are presented in the "Current Fiscal Year" column and are reported as special mention or substandard. These loans were generally first originated in prior years but were renewed or modified in the current year. September 30, 2021 Current Fiscal Fiscal Fiscal Fiscal Revolving Fiscal Year Year Year Year Prior Line of Year 2020 2019 2018 2017 Years Credit Total (Dollars in thousands) One- to four-family: Originated Pass $ 958,080 $ 705,561 $ 326,156 $ 250,846 $ 281,104 $ 1,434,455 $ — $ 3,956,202 Special Mention 402 443 501 678 237 7,805 — 10,066 Substandard — 966 867 51 192 11,192 — 13,268 Correspondent purchased Pass 630,977 334,042 88,057 136,572 162,938 664,530 — 2,017,116 Special Mention 760 — 356 — — 3,160 — 4,276 Substandard — — 169 504 — 4,527 — 5,200 Bulk purchased Pass — — — — — 169,519 — 169,519 Special Mention — — — — — — — — Substandard — — — — — 4,848 — 4,848 1,590,219 1,041,012 416,106 388,651 444,471 2,300,036 — 6,180,495 Commercial: Commercial real estate Pass 272,329 149,244 94,972 61,214 38,962 35,591 5,231 657,543 Special Mention 50,352 — — — — 49,369 — 99,721 Substandard 810 627 225 669 — 34 — 2,365 Commercial and industrial Pass 32,651 10,168 6,988 2,213 1,155 595 11,709 65,479 Special Mention — — — — — — — — Substandard — — — 86 48 — 765 899 356,142 160,039 102,185 64,182 40,165 85,589 17,705 826,007 Consumer: Home equity Pass 3,295 2,218 1,428 1,563 536 2,473 74,036 85,549 Special Mention — — 37 12 — — 82 131 Substandard — 60 — — — 9 636 705 Other Pass 3,491 1,631 1,086 944 465 105 339 8,061 Special Mention — — 4 — — — — 4 Substandard — 3 6 1 3 — — 13 6,786 3,912 2,561 2,520 1,004 2,587 75,093 94,463 Total $ 1,953,147 $ 1,204,963 $ 520,852 $ 455,353 $ 485,640 $ 2,388,212 $ 92,798 $ 7,100,965 The following table sets forth the recorded investment in loans classified as special mention or substandard, by class, at September 30, 2020 (prior to the adoption of CECL). At that date, there were no loans classified as doubtful, and all loans classified as loss were fully charged-off. Special Mention Substandard (Dollars in thousands) One- to four-family: Originated $ 9,249 $ 15,729 Correspondent purchased 2,076 4,512 Bulk purchased — 5,319 Commercial: Commercial real estate 50,957 3,541 Commercial and industrial 1,040 1,368 Consumer: Home equity 331 581 Other — 8 $ 63,653 $ 31,058 Delinquency Status - The following table sets forth, as of September 30, 2021, the amortized cost of current loans, loans 30 to 89 days delinquent, and loans 90 or more days delinquent or in foreclosure ("90+/FC"), by class of financing receivable and year of origination or most recent credit decision. All revolving lines of credit are presented separately, regardless of origination year. September 30, 2021 Current Fiscal Fiscal Fiscal Fiscal Revolving Fiscal Year Year Year Year Prior Line of Year 2020 2019 2018 2017 Years Credit Total (Dollars in thousands) One- to four-family: Originated Current $ 958,482 $ 706,970 $ 327,408 $ 251,524 $ 281,341 $ 1,445,992 $ — $ 3,971,717 30-89 — — — 51 — 4,091 — 4,142 90+/FC — — 116 — 192 3,369 — 3,677 Correspondent purchased Current 630,977 334,042 88,413 136,572 162,017 668,685 — 2,020,706 30-89 760 — — — 921 948 — 2,629 90+/FC — — 169 504 — 2,584 — 3,257 Bulk purchased Current — — — — — 170,809 — 170,809 30-89 — — — — — 555 — 555 90+/FC — — — — — 3,003 — 3,003 1,590,219 1,041,012 416,106 388,651 444,471 2,300,036 — 6,180,495 Commercial: Commercial real estate Current 323,491 149,244 94,972 61,651 38,962 84,957 5,231 758,508 30-89 — — — — — 37 — 37 90+/FC — 627 225 232 — — — 1,084 Commercial and industrial Current 32,651 10,168 6,988 2,212 1,155 595 12,474 66,243 30-89 — — — — — — — — 90+/FC — — — 87 48 — — 135 356,142 160,039 102,185 64,182 40,165 85,589 17,705 826,007 Consumer: Home equity Current 3,295 2,218 1,465 1,575 536 2,357 73,958 85,404 30-89 — — — — — 121 375 496 90+/FC — 60 — — — 4 421 485 Other Current 3,491 1,631 1,088 944 465 105 339 8,063 30-89 — — 2 — — — — 2 90+/FC — 3 6 1 3 — — 13 6,786 3,912 2,561 2,520 1,004 2,587 75,093 94,463 Total $ 1,953,147 $ 1,204,963 $ 520,852 $ 455,353 $ 485,640 $ 2,388,212 $ 92,798 $ 7,100,965 Delinquent and Nonaccrual Loans - The following tables present the amortized cost at September 30, 2021 and, prior to the adoption of CECL, the recorded investment, which is identical to amortized cost, at September 30, 2020, by class, of loans 30 to 89 days delinquent, loans 90 or more days delinquent or in foreclosure, total delinquent loans, current loans, and total. At September 30, 2021 and 2020, all loans 90 or more days delinquent were on nonaccrual status. September 30, 2021 90 or More Days Total Total 30 to 89 Days Delinquent or Delinquent Current Amortized Delinquent in Foreclosure Loans Loans Cost (Dollars in thousands) One- to four-family: Originated $ 4,142 $ 3,677 $ 7,819 $ 3,971,717 $ 3,979,536 Correspondent purchased 2,629 3,257 5,886 2,020,706 2,026,592 Bulk purchased 555 3,003 3,558 170,809 174,367 Commercial: Commercial real estate 37 1,084 1,121 758,508 759,629 Commercial and industrial — 135 135 66,243 66,378 Consumer: Home equity 496 485 981 85,404 86,385 Other 2 13 15 8,063 8,078 $ 7,861 $ 11,654 $ 19,515 $ 7,081,450 $ 7,100,965 September 30, 2020 90 or More Days Total Total 30 to 89 Days Delinquent or Delinquent Current Recorded Delinquent in Foreclosure Loans Loans Investment (Dollars in thousands) One- to four-family: Originated $ 3,001 $ 4,347 $ 7,348 $ 3,950,387 $ 3,957,735 Correspondent purchased 3,170 2,433 5,603 2,122,085 2,127,688 Bulk purchased 2,558 2,938 5,496 203,844 209,340 Commercial: Commercial real estate 40 1,206 1,246 728,191 729,437 Commercial and industrial 5 157 162 96,124 96,286 Consumer: Home equity 323 296 619 103,210 103,829 Other 75 8 83 9,980 10,063 $ 9,172 $ 11,385 $ 20,557 $ 7,213,821 $ 7,234,378 The amortized cost of mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of September 30, 2021 and 2020 was $799 thousand and $1.5 million, respectively, which is included in loans 90 or more days delinquent or in foreclosure in the tables above. The carrying value of residential OREO held as a result of obtaining physical possession upon completion of a foreclosure or through completion of a deed in lieu of foreclosure was $170 thousand at September 30, 2021 and $183 thousand at September 30, 2020. The following table presents the amortized cost at September 30, 2021 and, prior to the adoption of CECL, the recorded investment at September 30, 2020, by class, of loans classified as nonaccrual. Additionally, the amortized cost of nonaccrual loans that had no related ACL is presented as of September 30, 2021, all of which were individually evaluated for loss and any identified losses have been charged off. September 30, 2021 September 30, 2020 Nonaccrual Loans Nonaccrual Loans with No ACL Nonaccrual Loans (Dollars in thousands) One- to four-family: Originated $ 4,965 $ 2,237 $ 5,037 Correspondent purchased 3,257 307 2,433 Bulk purchased 3,134 1,564 2,938 Commercial: Commercial real estate 1,496 485 1,663 Commercial and industrial 134 86 157 Consumer: Home equity 494 84 305 Other 13 — 8 $ 13,493 $ 4,763 $ 12,541 TDRs - The following tables present the amortized cost for the current year and, prior to the adoption of CECL, the recorded investment for prior years, prior to restructuring and immediately after restructuring in all loans restructured during the years presented. These tables do not reflect the amortized cost at the end of the periods indicated. Any increase in the amortized cost at the time of the restructuring was generally due to the capitalization of delinquent interest and/or escrow balances. For the Year Ended September 30, 2021 Number Pre- Post- of Restructured Restructured Contracts Outstanding Outstanding (Dollars in thousands) One- to four-family: Originated 7 $ 1,685 $ 1,576 Correspondent purchased — — — Bulk purchased — — — Commercial: Commercial real estate — — — Commercial and industrial — — — Consumer: Home equity — — — Other — — — 7 $ 1,685 $ 1,576 For the Year Ended September 30, 2020 Number Pre- Post- of Restructured Restructured Contracts Outstanding Outstanding (Dollars in thousands) One- to four-family: Originated 5 $ 241 $ 242 Correspondent purchased 1 192 191 Bulk purchased 1 75 134 Commercial: Commercial real estate 1 837 837 Commercial and industrial 1 1,683 1,709 Consumer: Home equity 2 45 44 Other — — — 11 $ 3,073 $ 3,157 For the Year Ended September 30, 2019 Number Pre- Post- of Restructured Restructured Contracts Outstanding Outstanding (Dollars in thousands) One- to four-family: Originated 3 $ 385 $ 386 Correspondent purchased — — — Bulk purchased 2 377 377 Commercial: Commercial real estate — — — Commercial and industrial — — — Consumer: Home equity — — — Other — — — 5 $ 762 $ 763 The following table provides information on TDRs that became delinquent during the periods presented within 12 months after being restructured. For the Year Ended September 30, 2021 September 30, 2020 September 30, 2019 Number of Amortized Number of Recorded Number of Recorded Contracts Cost Contracts Investment Contracts Investment (Dollars in thousands) One- to four-family: Originated — $ — 1 $ 38 1 $ 45 Correspondent purchased — — — — — — Bulk purchased — — 1 134 — — Commercial: Commercial real estate — — — — — — Commercial and industrial — — — — — — Consumer: Home equity — — 1 9 — — Other — — — — — — — $ — 3 $ 181 1 $ 45 Impaired Loans - The following information pertains to impaired loans, by class, as of September 30, 2020 (prior to the adoption of CECL). Prior to the adoption of CECL, a loan was considered impaired when, based on current information and events, it was probable that the Bank would be unable to collect all amounts due, including principal and interest, according to the original contractual terms of the loan agreement. Unpaid Recorded Principal Related Investment Balance ACL (Dollars in thousands) With no related allowance recorded One- to four-family: Originated $ 12,385 $ 12,813 $ — Correspondent purchased 1,955 2,058 — Bulk purchased 3,843 4,302 — Commercial: Commercial real estate 1,052 1,379 — Commercial and industrial 99 244 — Consumer: Home equity 280 360 — Other — 45 — 19,614 21,201 — With an allowance recorded One- to four-family: Originated — — — Correspondent purchased — — — Bulk purchased — — — Commercial: Commercial real estate 660 660 83 Commercial and industrial 1,269 1,268 240 Consumer: Home equity — — — Other — — — 1,929 1,928 323 Total One- to four-family: Originated $ 12,385 $ 12,813 — Correspondent purchased 1,955 2,058 — Bulk purchased 3,843 4,302 — Commercial: Commercial real estate 1,712 2,039 83 Commercial and industrial 1,368 1,512 240 Consumer: Home equity 280 360 — Other — 45 — $ 21,543 $ 23,129 $ 323 The following information pertains to impaired loans, by class, for the periods presented (prior to the adoption of CECL). For the Year Ended September 30, 2020 September 30, 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (Dollars in thousands) With no related allowance recorded One- to four-family: Originated $ 13,918 $ 606 $ 16,030 $ 671 Correspondent purchased 1,878 73 2,071 82 Bulk purchased 4,720 179 5,257 180 Commercial: Commercial real estate 725 15 — — Commercial and industrial 41 — 5 — Consumer: Home equity 318 20 417 28 Other — — — — 21,600 893 23,780 961 With an allowance recorded One- to four-family: Originated — — — — Correspondent purchased — — — — Bulk purchased — — — — Commercial: Commercial real estate 51 — — — Commercial and industrial 1,413 91 — — Consumer: Home equity — — — — Other — — — — 1,464 91 — — Total One- to four-family: Originated 13,918 606 16,030 671 Correspondent purchased 1,878 73 2,071 82 Bulk purchased 4,720 179 5,257 180 Commercial: Commercial real estate 776 15 — — Commercial and industrial 1,454 91 5 — Consumer: Home equity 318 20 417 28 Other — — — — $ 23,064 $ 984 $ 23,780 $ 961 Allowance for Credit Losses - The following is a summary of ACL activity, by loan portfolio segment, for the periods presented. Activity during fiscal years 2020 and 2019 occurred prior to the adoption of CECL. For the Year Ended September 30, 2021 One- to Four-Family Correspondent Bulk Originated Purchased Purchased Total Commercial Consumer Total (Dollars in thousands) Beginning balance $ 6,085 $ 2,691 $ 467 $ 9,243 $ 21,800 $ 484 $ 31,527 Adoption of CECL (4,452) (367) 436 (4,383) (193) (185) (4,761) Balance at October 1, 2020 1,633 2,324 903 4,860 21,607 299 26,766 Charge-offs (164) — (21) (185) (515) (15) (715) Recoveries 144 — — 144 50 43 237 Provision for credit losses (1) (262) (578) (841) (5,490) (134) (6,465) Ending balance $ 1,612 $ 2,062 $ 304 $ 3,978 $ 15,652 $ 193 $ 19,823 For the Year Ended September 30, 2020 One- to Four-Family Correspondent Bulk Originated Purchased Purchased Total Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,000 $ 1,203 $ 687 $ 3,890 $ 5,171 $ 165 $ 9,226 Charge-offs (64) — — (64) (349) (30) (443) Recoveries 41 — 265 306 110 28 444 Provision for credit losses 4,108 1,488 (485) 5,111 16,868 321 22,300 Ending balance $ 6,085 $ 2,691 $ 467 $ 9,243 $ 21,800 $ 484 $ 31,527 For the Year Ended September 30, 2019 One- to Four-Family Correspondent Bulk Originated Purchased Purchased Total Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,953 $ 1,861 $ 925 $ 5,739 $ 2,556 $ 168 $ 8,463 Charge-offs (75) — (26) (101) (124) (37) (262) Recoveries 22 — 106 128 49 98 275 Provision for credit losses (900) (658) (318) (1,876) 2,690 (64) 750 Ending balance $ 2,000 $ 1,203 $ 687 $ 3,890 $ 5,171 $ 165 $ 9,226 The following is a summary of the loan portfolio and related ACL balances by loan portfolio segment disaggregated by the Company's impairment method as of September 30, 2020 (prior to the adoption of CECL). One- to Four-Family Correspondent Bulk Originated Purchased Purchased Total Commercial Consumer Total (Dollars in thousands) Recorded investment in loans: Collectively evaluated for impairment $ 3,945,350 $ 2,125,733 $ 205,497 $ 6,276,580 $ 822,643 $ 113,612 $ 7,212,835 Individually evaluated for impairment 12,385 1,955 3,843 18,183 3,080 280 21,543 $ 3,957,735 $ 2,127,688 $ 209,340 $ 6,294,763 $ 825,723 $ 113,892 $ 7,234,378 ACL for loans: Collectively evaluated for impairment $ 6,085 $ 2,691 $ 467 $ 9,243 $ 21,477 $ 484 $ 31,204 Individually evaluated for impairment — — — — 323 — 323 $ 6,085 $ 2,691 $ 467 $ 9,243 $ 21,800 $ 484 $ 31,527 The key assumptions in the Company's ACL model at September 30, 2021 include the economic forecast, the forecast and reversion to mean time periods, and prepayment and curtailment assumptions. Management also considered certain qualitative factors when evaluating the adequacy of the ACL at September 30, 2021. The key assumptions utilized in estimating the Company's ACL at September 30, 2021 are discussed below. • Economic Forecast - Management considered several economic forecasts provided by a third party and selected the economic forecast believed to be the most appropriate considering the facts and circumstances at September 30, 2021. The forecasted economic indices applied to the model at September 30, 2021 were the national unemployment rate, changes in commercial real estate price index, changes in home values, and changes in the U.S. gross domestic product. The economic index most impactful to all loan pools within the model at September 30, 2021 was the national unemployment rate. The forecast national unemployment rate in the economic scenario selected by management at September 30, 2021 had the national unemployment rate gradually declining to 3.4% at September 30, 2022 which was the end of our four-quarter forecast time period. • Forecast and reversion to mean time period - The forecasted time period and the reversion to mean time period were each four quarters for all of the economic indices at September 30, 2021. • Prepayment and curtailment assumptions - The assumptions used at September 30, 2021 were generally based on actual historical prepayment and curtailment speeds for each respective loan pool in the model. • Qualitative factors - The qualitative factors applied by management at September 30, 2021 included the following: ◦ The balance and trending of large-dollar special mention commercial loans; ◦ The economic uncertainties related to (1) the job market, specifically the unemployment rate and labor participation rate and how the significant federal aid may be impacting those measures and the true state of the financial position of borrowers and (2) the unevenness of the recovery in certain industries; and ◦ COVID-19 loan modifications related to commercial real estate loans. The decrease in ACL at September 30, 2021 compared to October 1, 2020 (CECL adoption date) was primarily a result of a negative provision for credit losses of $6.5 million. The negative provision for credit losses was due primarily to a reduction in the commercial loan ACL related to improvements in forecasted economic conditions since CECL adoption, partially offset by an increase in commercial loan qualitative factors as discussed above. Reserve for Off-Balance Sheet Credit Exposures - The following is a summary of the changes in reserve for off-balance sheet credit exposures during the period indicated. The negative provision for credit losses was due primarily to a reduction in the commercial loan reserves related to improvements in forecasted economic conditions since CECL adoption. For the Year Ended September 30, 2021 (Dollars in thousands) Beginning balance $ — Adoption of CECL 7,788 Balance at October 1, 2020 7,788 Provision for credit losses (2,045) Ending balance $ 5,743 |
