| Loans Receivable And Allowance For Credit Losses | LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES Loans receivable, net at the dates presented is summarized as follows: March 31, 2022 September 30, 2021 (Dollars in thousands) One- to four-family: Originated $ 3,943,327 $ 3,956,064 Correspondent purchased 1,995,167 2,003,477 Bulk purchased 155,657 173,662 Construction 50,512 39,142 Total 6,144,663 6,172,345 Commercial: Commercial real estate 671,324 676,908 Commercial and industrial 78,363 66,497 Construction 133,597 85,963 Total 883,284 829,368 Consumer: Home equity 82,878 86,274 Other 7,858 8,086 Total 90,736 94,360 Total loans receivable 7,118,683 7,096,073 Less: ACL 15,312 19,823 Deferred loan fees/discounts 29,264 29,556 Premiums/deferred costs (34,703) (34,448) $ 7,108,810 $ 7,081,142 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 ("CFPB"). 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 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, loan-to-value ("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. 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 commercial and industrial loans. As a result of these additional complexities, variables and risks, commercial and industrial loans require more thorough underwriting and servicing than other types of loans. Consumer loans - The Bank offers a variety of consumer loans, the majority of which are home equity loans and 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. 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 the dates indicated, 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 March 31, 2022 and September 30, 2021, there were no loans classified as doubtful, and all loans classified as loss were fully charged-off. March 31, 2022 Current Fiscal Fiscal Fiscal Fiscal Revolving Fiscal Year Year Year Year Prior Line of Year 2021 2020 2019 2018 Years Credit Total (Dollars in thousands) One- to four-family: Originated Pass $ 279,870 $ 947,585 $ 660,727 $ 299,587 $ 228,107 $ 1,539,978 $ — $ 3,955,854 Special Mention — 256 439 623 604 7,784 — 9,706 Substandard — — 964 860 257 10,268 — 12,349 Correspondent purchased Pass 167,952 679,473 290,667 76,422 112,725 682,094 — 2,009,333 Special Mention — — — 353 981 2,287 — 3,621 Substandard — 755 — 169 517 4,410 — 5,851 Bulk purchased Pass — — — — — 152,166 — 152,166 Special Mention — — — — — — — — Substandard — — — — — 4,115 — 4,115 447,822 1,628,069 952,797 378,014 343,191 2,403,102 — 6,152,995 Commercial: Commercial real estate Pass 124,876 264,759 131,773 93,940 54,207 75,972 6,737 752,264 Special Mention — 47,093 — — — — — 47,093 Substandard 445 599 595 223 630 30 — 2,522 Commercial and industrial Pass 22,778 21,588 7,941 5,836 1,343 860 17,056 77,402 Special Mention — — — — — — — — Substandard — — — — 86 38 851 975 148,099 334,039 140,309 99,999 56,266 76,900 24,644 880,256 Consumer: Home equity Pass 902 2,734 1,737 1,136 1,202 2,346 72,047 82,104 Special Mention — — — 37 — — 269 306 Substandard — — — 19 — 72 516 607 Other Pass 1,825 2,565 1,184 711 758 493 307 7,843 Special Mention — — — — — — — — Substandard — — 2 5 1 3 — 11 2,727 5,299 2,923 1,908 1,961 2,914 73,139 90,871 Total $ 598,648 $ 1,967,407 $ 1,096,029 $ 479,921 $ 401,418 $ 2,482,916 $ 97,783 $ 7,124,122 In the table below, certain commercial loans are presented in the "Fiscal Year 2021" column and are reported as special mention or substandard. These loans were generally first originated in prior years but were renewed or modified in fiscal year 2021. September 30, 2021 Fiscal Fiscal Fiscal Fiscal Fiscal Revolving Year Year Year Year Year Prior Line of 2021 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 Delinquency Status - The following tables set forth, as of the dates indicated, 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 as of the dates indicated. All revolving lines of credit are presented separately, regardless of origination year. March 31, 2022 Current Fiscal Fiscal Fiscal Fiscal Revolving Fiscal Year Year Year Year Prior Line of Year 2021 2020 2019 2018 Years Credit Total (Dollars in thousands) One- to four-family: Originated Current $ 279,870 $ 947,624 $ 660,972 $ 299,726 $ 228,632 $ 1,550,192 $ — $ 3,967,016 30-89 — 217 474 1,228 229 4,756 — 6,904 90+/FC — — 684 116 107 3,082 — 3,989 Correspondent purchased Current 167,952 679,473 290,667 76,775 113,706 683,754 — 2,012,327 30-89 — — — — — 2,453 — 2,453 90+/FC — 755 — 169 517 2,584 — 4,025 Bulk purchased Current — — — — — 154,038 — 154,038 30-89 — — — — — 399 — 399 90+/FC — — — — — 1,844 — 1,844 447,822 1,628,069 952,797 378,014 343,191 2,403,102 — 6,152,995 Commercial: Commercial real estate Current 124,998 312,451 131,773 93,940 54,607 76,002 6,737 800,508 30-89 323 — — — — — — 323 90+/FC — — 595 223 230 — — 1,048 Commercial and industrial Current 22,778 21,588 7,918 5,830 1,321 860 17,907 78,202 30-89 — — 23 6 22 — — 51 90+/FC — — — — 86 38 — 124 148,099 334,039 140,309 99,999 56,266 76,900 24,644 880,256 Consumer: Home equity Current 902 2,734 1,737 1,192 1,202 2,337 72,331 82,435 30-89 — — — — — 13 180 193 90+/FC — — — — — 68 321 389 Other Current 1,824 2,552 1,184 705 758 493 305 7,821 30-89 1 13 — 6 — — 2 22 90+/FC — — 2 5 1 3 — 11 2,727 5,299 2,923 1,908 1,961 2,914 73,139 90,871 Total $ 598,648 $ 1,967,407 $ 1,096,029 $ 479,921 $ 401,418 $ 2,482,916 $ 97,783 $ 7,124,122 September 30, 2021 Fiscal Fiscal Fiscal Fiscal Fiscal Revolving Year Year Year Year Year Prior Line of 2021 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 the dates indicated, 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 loans. At March 31, 2022 and September 30, 2021, all loans 90 or more days delinquent were on nonaccrual status. March 31, 2022 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 $ 6,904 $ 3,989 $ 10,893 $ 3,967,016 $ 3,977,909 Correspondent purchased 2,453 4,025 6,478 2,012,327 2,018,805 Bulk purchased 399 1,844 2,243 154,038 156,281 Commercial: Commercial real estate 323 1,048 1,371 800,508 801,879 Commercial and industrial 51 124 175 78,202 78,377 Consumer: Home equity 193 389 582 82,435 83,017 Other 22 11 33 7,821 7,854 $ 10,345 $ 11,430 $ 21,775 $ 7,102,347 $ 7,124,122 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 The amortized cost of mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of March 31, 2022 and September 30, 2021 was $2.9 million and $799 thousand, 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. There was no residential OREO held as of March 31, 2022. The following table presents the amortized cost at March 31, 2022 and September 30, 2021, by class, of loans classified as nonaccrual. Additionally, the amortized cost of nonaccrual loans that had no related ACL is presented, all of which were individually evaluated for loss and any identified losses have been charged off. March 31, 2022 September 30, 2021 Nonaccrual Loans Nonaccrual Loans with No ACL Nonaccrual Loans Nonaccrual Loans with No ACL (Dollars in thousands) One- to four-family: Originated $ 4,493 $ 1,800 $ 4,965 $ 2,237 Correspondent purchased 4,025 307 3,257 307 Bulk purchased 1,844 950 3,134 1,564 Commercial: Commercial real estate 1,076 453 1,496 485 Commercial and industrial 124 124 134 86 Consumer: Home equity 416 101 494 84 Other 11 — 13 — $ 11,989 $ 3,735 $ 13,493 $ 4,763 TDRs - The following tables present the amortized cost prior to restructuring and immediately after restructuring in all loans restructured during the periods 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 Three Months Ended For the Six Months Ended March 31, 2022 March 31, 2022 Number Pre- Post- Number Pre- Post- of Restructured Restructured of Restructured Restructured Contracts Outstanding Outstanding Contracts Outstanding Outstanding (Dollars in thousands) One- to four-family: Originated 1 $ 100 $ 100 2 $ 124 $ 124 Correspondent purchased — — — — — — Bulk purchased — — — — — — Commercial: Commercial real estate — — — — — — Commercial and industrial 2 124 124 2 124 124 Consumer: Home equity 1 19 19 1 19 19 Other — — — — — — 4 $ 243 $ 243 5 $ 267 $ 267 For the Three Months Ended For the Six Months Ended March 31, 2021 March 31, 2021 Number Pre- Post- Number Pre- Post- of Restructured Restructured of Restructured Restructured Contracts Outstanding Outstanding Contracts Outstanding Outstanding (Dollars in thousands) One- to four-family: Originated 2 $ 871 $ 762 6 $ 1,518 $ 1,407 Correspondent purchased — — — — — — Bulk purchased — — — — — — Commercial: Commercial real estate — — — — — — Commercial and industrial — — — — — — Consumer: Home equity — — — — — — Other — — — — — — 2 $ 871 $ 762 6 $ 1,518 $ 1,407 The following table provides information on TDRs that became delinquent during the periods presented within 12 months after being restructured. For the Three Months Ended For the Six Months Ended March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021 Number of Amortized Number of Amortized Number of Amortized Number of Amortized Contracts Cost Contracts Cost Contracts Cost Contracts Cost (Dollars in thousands) One- to four-family: Originated — $ — — $ — 1 $ 684 — $ — Correspondent purchased — — — — — — — — Bulk purchased — — — — — — — — Commercial: Commercial real estate — — — — — — — — Commercial and industrial — — — — — — — — Consumer: Home equity — — — — — — — — Other — — — — — — — — — $ — — $ — 1 $ 684 — $ — Allowance for Credit Losses - The following is a summary of ACL activity, by loan portfolio segment, for the periods presented. For the Three Months Ended March 31, 2022 One- to Four-Family Correspondent Bulk Originated Purchased Purchased Total Commercial Consumer Total (Dollars in thousands) Beginning balance $ 1,639 $ 2,082 $ 268 $ 3,989 $ 13,353 $ 193 $ 17,535 Charge-offs — — — — — (5) (5) Recoveries 2 — — 2 13 4 19 Provision for credit losses 68 47 (27) 88 (2,335) 10 (2,237) Ending balance $ 1,709 $ 2,129 $ 241 $ 4,079 $ 11,031 $ 202 $ 15,312 For the Six Months Ended March 31, 2022 One- to Four-Family Correspondent Bulk Originated Purchased Purchased Total Commercial Consumer Total (Dollars in thousands) Beginning balance $ 1,612 $ 2,062 $ 304 $ 3,978 $ 15,652 $ 193 $ 19,823 Charge-offs (4) — — (4) (10) (6) (20) Recoveries 11 — — 11 49 5 65 Provision for credit losses 90 67 (63) 94 (4,660) 10 (4,556) Ending balance $ 1,709 $ 2,129 $ 241 $ 4,079 $ 11,031 $ 202 $ 15,312 For the Three Months Ended March 31, 2021 One- to Four-Family Correspondent Bulk Originated Purchased Purchased Total Commercial Consumer Total (Dollars in thousands) Beginning balance $ 1,538 $ 1,758 $ 852 $ 4,148 $ 21,707 $ 270 $ 26,125 Charge-offs (110) — (21) (131) — (7) (138) Recoveries 57 — — 57 8 3 68 Provision for credit losses 51 (53) (84) (86) (2,558) (14) (2,658) Ending balance $ 1,536 $ 1,705 $ 747 $ 3,988 $ 19,157 $ 252 $ 23,397 For the Six Months Ended March 31, 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 (124) — (21) (145) (515) (10) (670) Recoveries 91 — — 91 20 25 136 Provision for credit losses (64) (619) (135) (818) (1,955) (62) (2,835) Ending balance $ 1,536 $ 1,705 $ 747 $ 3,988 $ 19,157 $ 252 $ 23,397 The key assumptions in the Company's ACL model 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 March 31, 2022. The key assumptions utilized in estimating the Company's ACL at March 31, 2022 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 March 31, 2022. The forecasted economic indices applied to the model at March 31, 2022 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 March 31, 2022 was the national unemployment rate. The forecast national unemployment rate in the economic scenario selected by management at March 31, 2022 had the national unemployment rate gradually declining to 3.4% by March 31, 2023 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 March 31, 2022. • Prepayment and curtailment assumptions - The assumptions used at March 31, 2022 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 March 31, 2022 included the following: ◦ The economic uncertainties related to (1) the job market, the labor force composition, the unemployment rate, and labor participation rate and how the significant federal assistance and other factors may be impacting those measures and (2) the unevenness of the recovery in certain industries in which the Bank has lending relationships; ◦ The balance and trending of large-dollar special mention commercial loans; and ◦ Coronavirus Disease 2019 ("COVID-19") loan modifications related to commercial real estate loans. The decrease in ACL during the current year-to-date period was primarily a result of a negative provision for credit losses of $4.6 million which was due to (1) a reduction in the large-dollar special mention commercial loan qualitative factor due to two large-dollar special mention commercial loans moving to the pass classification during the December 31, 2021 quarter, (2) a reduction in model-calculated ACL for commercial loans due to an increase in projected commercial loan prepayment speeds as a result of management's outlook for prepayment activity and the composition and nature of our commercial loan portfolio, (3) a decrease in the commercial loan COVID-19 modification qualitative factor due to loans exiting their deferral time periods and resuming full payments per their original contracts during the current quarter, and (4) a decrease in the economic uncertainty qualitative factor for commercial loans due to improvement in economic conditions through March 31, 2022. 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 periods indicated. The negative provision for credit losses in the current year period was due primarily to a reduction in the commercial loan economic uncertainty qualitative factor and to a reduction in the reserves for commercial construction loans due mainly to a reduction in the model-calculated amount as noted for the ACL. For the Three Months Ended For the Six Months Ended March 31, 2022 March 31, 2022 (Dollars in thousands) Beginning balance $ 4,623 Beginning balance $ 5,743 Provision for credit losses (951) Provision for credit losses (2,071) Ending balance $ 3,672 Ending balance $ 3,672 For the Three Months Ended For the Six Months Ended March 31, 2021 March 31, 2021 (Dollars in thousands) Beginning balance $ 6,433 Beginning balance $ — Provision for credit losses (306) Adoption of CECL 7,788 Ending balance $ 6,127 Balance at October 1, 2020 7,788 Provision for credit losses (1,661) Ending balance $ 6,127 |
