| 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: December 31, 2023 September 30, 2023 (Dollars in thousands) One- to four-family: Originated $ 3,986,479 $ 3,978,837 Correspondent purchased 2,360,843 2,405,911 Bulk purchased 134,504 137,193 Construction 43,631 69,974 Total 6,525,457 6,591,915 Commercial: Commercial real estate 1,019,431 995,788 Commercial and industrial 113,686 112,953 Construction 196,493 178,746 Total 1,329,610 1,287,487 Consumer: Home equity 96,952 95,723 Other 9,670 9,256 Total 106,622 104,979 Total loans receivable 7,961,689 7,984,381 Less: ACL 24,178 23,759 Deferred loan fees/discounts 30,653 31,335 Premiums/deferred costs (40,652) (41,662) $ 7,947,510 $ 7,970,949 Lending Practices and Underwriting Standards - Originating one- to four-family loans is the Bank's primary lending business. The Bank also purchases one- to four-family loans from correspondent lenders and 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. 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 generally 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 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 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 tables set 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 and revolving lines of credit converted to term loans are presented separately, regardless of origination year. Loans classified as doubtful or loss are individually evaluated for loss. At December 31, 2023 and September 30, 2023, there were no loans classified as doubtful, and all loans classified as loss were fully charged-off. December 31, 2023 Revolving Line of Current Fiscal Fiscal Fiscal Fiscal Revolving Credit Fiscal Year Year Year Year Prior Line of Converted Year 2023 2022 2021 2020 Years Credit to Term Total (Dollars in thousands) One- to four-family: Originated Pass $ 50,552 $ 323,563 $ 599,827 $ 858,168 $ 556,619 $ 1,600,122 $ — $ — $ 3,988,851 Special Mention — — 2,102 1,893 992 9,101 — — 14,088 Substandard — — — 691 1,051 9,809 — — 11,551 Correspondent purchased Pass 1,718 343,733 505,493 597,360 242,658 685,581 — — 2,376,543 Special Mention — 939 916 2,018 420 1,203 — — 5,496 Substandard — — 1,562 — — 6,299 — — 7,861 Bulk purchased Pass — — — — — 131,789 — — 131,789 Special Mention — — — — — — — — — Substandard — — — — — 3,180 — — 3,180 52,270 668,235 1,109,900 1,460,130 801,740 2,447,084 — — 6,539,359 Commercial: Commercial real estate Pass 124,327 398,195 313,127 148,827 80,194 131,801 11,725 — 1,208,196 Special Mention — 2,473 — — — — — — 2,473 Substandard — 67 — — 594 474 — — 1,135 Commercial and industrial Pass 3,795 31,101 21,344 10,790 2,711 3,039 28,209 — 100,989 Special Mention — 12,593 — — — — — — 12,593 Substandard — — — — — 82 — — 82 128,122 444,429 334,471 159,617 83,499 135,396 39,934 — 1,325,468 Consumer: Home equity Pass 2,552 5,341 5,444 1,723 1,031 2,724 71,875 5,995 96,685 Special Mention — — 46 — — 16 43 226 331 Substandard — — — — — 3 58 114 175 Other Pass 1,551 4,181 2,439 640 253 191 412 — 9,667 Special Mention — — — — 3 — — — 3 Substandard — — — — — — — — — 4,103 9,522 7,929 2,363 1,287 2,934 72,388 6,335 106,861 Total $ 184,495 $ 1,122,186 $ 1,452,300 $ 1,622,110 $ 886,526 $ 2,585,414 $ 112,322 $ 6,335 $ 7,971,688 September 30, 2023 Revolving Line of Fiscal Fiscal Fiscal Fiscal Fiscal Revolving Credit Year Year Year Year Year Prior Line of Converted 2023 2022 2021 2020 2019 Years Credit to Term Total (Dollars in thousands) One- to four-family: Originated Pass $ 318,569 $ 597,298 $ 874,518 $ 568,081 $ 251,773 $ 1,398,616 $ — $ — $ 4,008,855 Special Mention — 1,883 1,468 767 1,863 8,067 — — 14,048 Substandard 292 155 221 564 939 7,954 — — 10,125 Correspondent purchased Pass 346,084 517,976 607,968 246,926 62,744 643,520 — — 2,425,218 Special Mention 308 674 1,674 420 357 1,133 — — 4,566 Substandard — — — 564 — 5,402 — — 5,966 Bulk purchased Pass — — — — — 134,464 — — 134,464 Special Mention — — — — — — — — — Substandard — — — — — 3,208 — — 3,208 665,253 1,117,986 1,485,849 817,322 317,676 2,202,364 — — 6,606,450 Commercial: Commercial real estate Pass 403,269 301,164 208,942 81,478 82,027 79,170 10,448 — 1,166,498 Special Mention 2,483 — — — — — — — 2,483 Substandard 67 — — 594 219 255 — — 1,135 Commercial and industrial Pass 30,206 23,166 11,740 3,228 2,693 748 27,104 — 98,885 Special Mention 13,191 — — — — — 699 — 13,890 Substandard — — — 73 — 82 — — 155 449,216 324,330 220,682 85,373 84,939 80,255 38,251 — 1,283,046 Consumer: Home equity Pass 5,501 5,624 1,955 1,069 746 2,224 72,119 6,205 95,443 Special Mention — 46 — — — 21 62 195 324 Substandard — — — — — 15 125 48 188 Other Pass 4,758 2,693 787 338 133 129 412 — 9,250 Special Mention — — — 4 — — — 1 5 Substandard 2 — — — — — — — 2 10,261 8,363 2,742 1,411 879 2,389 72,718 6,449 105,212 Total $ 1,124,730 $ 1,450,679 $ 1,709,273 $ 904,106 $ 403,494 $ 2,285,008 $ 110,969 $ 6,449 $ 7,994,708 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 and revolving lines of credit converted to term loans are presented separately, regardless of origination year. December 31, 2023 Revolving Line of Current Fiscal Fiscal Fiscal Fiscal Revolving Credit Fiscal Year Year Year Year Prior Line of Converted Year 2023 2022 2021 2020 Years Credit to Term Total (Dollars in thousands) One- to four-family: Originated Current $ 50,552 $ 323,563 $ 601,737 $ 859,737 $ 557,404 $ 1,610,031 $ — $ — $ 4,003,024 30-89 — — 192 544 769 6,220 — — 7,725 90+/FC — — — 471 489 2,781 — — 3,741 Correspondent purchased Current 1,718 343,899 505,799 596,983 243,078 688,058 — — 2,379,535 30-89 — 773 610 2,395 — 2,362 — — 6,140 90+/FC — — 1,562 — — 2,663 — — 4,225 Bulk purchased Current — — — — — 133,440 — — 133,440 30-89 — — — — — 587 — — 587 90+/FC — — — — — 942 — — 942 52,270 668,235 1,109,900 1,460,130 801,740 2,447,084 — — 6,539,359 Commercial: Commercial real estate Current 123,381 399,539 313,127 148,827 80,136 130,629 11,475 — 1,207,114 30-89 946 1,129 — — 58 1,191 250 — 3,574 90+/FC — 67 — — 594 455 — — 1,116 Commercial and industrial Current 3,795 43,463 21,344 10,790 2,711 3,039 28,209 — 113,351 30-89 — 231 — — — — — — 231 90+/FC — — — — — 82 — — 82 128,122 444,429 334,471 159,617 83,499 135,396 39,934 — 1,325,468 Consumer: Home equity Current 2,552 5,341 5,452 1,706 1,031 2,676 71,483 6,207 96,448 30-89 — — 38 17 — 64 473 35 627 90+/FC — — — — — 3 20 93 116 Other Current 1,551 4,146 2,368 618 250 190 407 — 9,530 30-89 — 35 71 22 6 1 5 — 140 90+/FC — — — — — — — — — 4,103 9,522 7,929 2,363 1,287 2,934 72,388 6,335 106,861 Total $ 184,495 $ 1,122,186 $ 1,452,300 $ 1,622,110 $ 886,526 $ 2,585,414 $ 112,322 $ 6,335 $ 7,971,688 September 30, 2023 Revolving Line of Fiscal Fiscal Fiscal Fiscal Fiscal Revolving Credit Year Year Year Year Year Prior Line of Converted 2023 2022 2021 2020 2019 Years Credit to Term Total (Dollars in thousands) One- to four-family: Originated Current $ 318,211 $ 598,283 $ 875,563 $ 567,975 $ 253,546 $ 1,407,090 $ — $ — $ 4,020,668 30-89 358 898 644 1,437 820 5,960 — — 10,117 90+/FC 292 155 — — 209 1,587 — — 2,243 Correspondent purchased Current 346,084 518,650 608,573 247,346 62,652 643,739 — — 2,427,044 30-89 308 — 1,069 564 449 2,862 — — 5,252 90+/FC — — — — — 3,454 — — 3,454 Bulk purchased Current — — — — — 136,577 — — 136,577 30-89 — — — — — 153 — — 153 90+/FC — — — — — 942 — — 942 665,253 1,117,986 1,485,849 817,322 317,676 2,202,364 — — 6,606,450 Commercial: Commercial real estate Current 404,867 301,164 208,942 81,478 82,027 79,188 10,448 — 1,168,114 30-89 36 — — — — — — — 36 90+/FC 916 — — 594 219 237 — — 1,966 Commercial and industrial Current 43,397 23,166 11,740 3,228 2,690 748 27,684 — 112,653 30-89 — — — — 2 — 57 — 59 90+/FC — — — 73 1 82 62 — 218 449,216 324,330 220,682 85,373 84,939 80,255 38,251 — 1,283,046 Consumer: Home equity Current 5,428 5,631 1,955 990 746 2,195 71,986 6,312 95,243 30-89 73 39 — 79 — 50 239 125 605 90+/FC — — — — — 15 81 11 107 Other Current 4,737 2,613 765 338 132 129 412 — 9,126 30-89 17 80 22 4 1 — — 1 125 90+/FC 6 — — — — — — — 6 10,261 8,363 2,742 1,411 879 2,389 72,718 6,449 105,212 Total $ 1,124,730 $ 1,450,679 $ 1,709,273 $ 904,106 $ 403,494 $ 2,285,008 $ 110,969 $ 6,449 $ 7,994,708 Gross Charge-Offs - Upon adoption of ASU 2022-02 on October 1, 2023, the Company is required to present gross charge-offs by class of financing receivable and year of origination or most recent credit decision. The following table sets forth the required gross charge-off information for the three months ended December 31, 2023. Revolving Lines Current Fiscal Fiscal Fiscal Fiscal Revolving of Credit Fiscal Year Year Year Year Prior Lines of Converted to Year 2023 2022 2021 2020 Years Credit Term Total (Dollars in thousands) One- to four-family: Originated $ — $ — $ — $ — $ — $ — $ — $ — $ — Correspondent purchased — — — — — — — — — Bulk purchased — — — — — — — — — — — — — — — — — — Commercial: Commercial real estate — — — — — — — — — Commercial and Industrial — — — — — — — — — — — — — — — — — — Consumer: Home Equity 1 1 — — — — — — 2 Other — 5 — — — — — — 5 1 6 — — — — — — 7 Total $ 1 $ 6 $ — $ — $ — $ — $ — $ — $ 7 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 December 31, 2023 and September 30, 2023, all loans 90 or more days delinquent were on nonaccrual status. The increase in correspondent and bulk purchased one- to four-family loans 30 to 89 days delinquent and in nonaccrual one- to four-family loans was due mainly to delinquencies returning to more historical levels as government payment assistance programs expired. The increase in commercial loans 30 to 89 days delinquent was a mix of several different borrowers and property types. There was not one underlying reason for the increase in commercial loan delinquencies from September 30, 2023. Management is working closely with the borrowers to address payment issues. December 31, 2023 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 $ 7,725 $ 3,741 $ 11,466 $ 4,003,024 $ 4,014,490 Correspondent purchased 6,140 4,225 10,365 2,379,535 2,389,900 Bulk purchased 587 942 1,529 133,440 134,969 Commercial: Commercial real estate 3,574 1,116 4,690 1,207,114 1,211,804 Commercial and industrial 231 82 313 113,351 113,664 Consumer: Home equity 627 116 743 96,448 97,191 Other 140 — 140 9,530 9,670 $ 19,024 $ 10,222 $ 29,246 $ 7,942,442 $ 7,971,688 September 30, 2023 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 $ 10,117 $ 2,243 $ 12,360 $ 4,020,668 $ 4,033,028 Correspondent purchased 5,252 3,454 8,706 2,427,044 2,435,750 Bulk purchased 153 942 1,095 136,577 137,672 Commercial: Commercial real estate 36 1,966 2,002 1,168,114 1,170,116 Commercial and industrial 59 218 277 112,653 112,930 Consumer: Home equity 605 107 712 95,243 95,955 Other 125 6 131 9,126 9,257 $ 16,347 $ 8,936 $ 25,283 $ 7,969,425 $ 7,994,708 The amortized cost of mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of December 31, 2023 and September 30, 2023 was $2.8 million and $2.5 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 $444 thousand at December 31, 2023 and $219 thousand at September 30, 2023. The following table presents the amortized cost at December 31, 2023 and September 30, 2023, 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. December 31, 2023 September 30, 2023 Nonaccrual Loans Nonaccrual Loans with No ACL Nonaccrual Loans Nonaccrual Loans with No ACL (Dollars in thousands) One- to four-family: Originated $ 3,741 $ 157 $ 2,457 $ 471 Correspondent purchased 4,225 — 3,739 285 Bulk purchased 942 630 942 630 Commercial: Commercial real estate 1,135 446 1,984 446 Commercial and industrial 82 83 218 155 Consumer: Home equity 116 — 107 3 Other — — 6 — $ 10,241 $ 1,316 $ 9,453 $ 1,990 Loan Modifications - The following table presents the amortized cost basis of loans as of December 31, 2023 that were both experiencing financial difficulties and modified during the three months ended December 31, 2023, by class of financing receivable and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulties as compared to the amortized cost basis of each class of financing receivable is also presented below. During the three months ended December 31, 2023, the Company did not charge-off any amounts related to the loans presented in the table below. The Company has not committed to lend additional amounts to borrowers included in this table. Combination- Total Term Extension Class of Principal Interest Rate Payment Term and Financing Forgiveness Reduction Delay Extension Payment Delay Total Receivable (Dollars in thousands) One- to four-family: Originated $ — $ — $ — $ — $ 4,405 $ 4,405 0.11 % Correspondent — — — — 1,247 1,247 0.05 Purchased — — — — — — — — — — — 5,652 5,652 0.09 Commercial: Commercial real estate — — — — — — — Commercial and industrial — — — — — — — — — — — — — — Consumer loans: Home equity — — — — — — — Other — — — — — — — — — — — — — — Total $ — $ — $ — $ — $ 5,652 $ 5,652 0.07 Financial effect of loan modifications - All loan modifications during the three months ended December 31, 2023 were a combination of term extensions and payment delays of one- to four-family originated loans or one- to four-family correspondent loans. The weighted average length of the term extensions was 23 months for one- to four-family originated loans and 12 months for one- to four-family correspondent loans. The weighted average payment delay was four months for both one- to four-family originated loans and one- to four-family correspondent loans. Performance of loan modifications - None of the loans modified during the three months ended December 31, 2023 defaulted through December 31, 2023. The Company considers "default" to mean 90 days or more past due under the modified terms. Of the loans modified during the three months ended December 31, 2023, $231 thousand of one-to four-family originated loans were 30-89 days delinquent at December 31, 2023. All other loans modified during the three months ended December 31, 2023 were current at December 31, 2023. TDRs - Prior to the adoption of ASU 2022-02 on October 1, 2023, loans were accounted for as TDRs if the Bank granted a concession to a borrower experiencing financial difficulties. There were no loans restructured during the three months ended December 31, 2022. During the three months ended December 31, 2022, there was one one-to four-family originated TDR with an amortized cost of $8 thousand that became delinquent within 12 months after being restructured. 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 December 31, 2023 One- to Four-Family Correspondent Bulk Originated Purchased Purchased Total Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,149 $ 2,972 $ 207 $ 5,328 $ 18,180 $ 251 $ 23,759 Adoption of ASU 2022-02 3 1 14 18 2 — 20 Balance at October 1, 2023 2,152 2,973 221 5,346 18,182 251 23,779 Charge-offs — — — — — (7) (7) Recoveries 5 — — 5 1 — 6 Provision for credit losses (63) (25) (15) (103) 495 8 400 Ending balance $ 2,094 $ 2,948 $ 206 $ 5,248 $ 18,678 $ 252 $ 24,178 For the Three Months Ended December 31, 2022 One- to Four-Family Correspondent Bulk Originated Purchased Purchased Total Commercial Consumer Total (Dollars in thousands) Beginning balance $ 2,066 $ 2,734 $ 206 $ 5,006 $ 11,120 $ 245 $ 16,371 Charge-offs — — — — — (4) (4) Recoveries 1 — — 1 — 1 2 Provision for credit losses 92 253 10 355 2,464 1 2,820 Ending balance $ 2,159 $ 2,987 $ 216 $ 5,362 $ 13,584 $ 243 $ 19,189 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 December 31, 2023. The key assumptions utilized in estimating the Company's ACL at December 31, 2023 are discussed below. • Economic Forecast - Management considered several economic forecasts provided by a third party and selected an economic forecast that was the most appropriate considering the facts and circumstances at December 31, 2023. The forecasted economic indices applied to the model at December 31, 2023 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 December 31, 2023 was the national unemployment rate. The forecasted national unemployment rate in the economic scenario selected by management at December 31, 2023 had the national unemployment rate gradually increasing to 4.0% by December 31, 2024, which was the end of our four-quarter forecast time period. • Forecast and reversion to mean time periods - The forecasted time period and the reversion to mean time period were each four quarters for all of the economic indices at December 31, 2023. • Prepayment and curtailment assumptions - The assumptions used at December 31, 2023 were generally based on actual historical prepayment and curtailment speeds, adjusted by management as deemed necessary. The prepayment and curtailment assumptions vary for each respective loan pool in the model. • Qualitative factors - The qualitative factors applied by management at December 31, 2023 included the following: ◦ The economic uncertainties related to the unemployment rate, the labor force composition, and the labor participation rate that are not captured in the third-party economic forecast scenarios; and ◦ Other management considerations related to commercial loans to account for credit risks not fully reflected in the discounted cash flow model. 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. At December 31, 2023 and September 30, 2023, the Bank's off-balance sheet credit exposures totaled $803.0 million and $837.7 million, respectively. For the Three Months Ended December 31, 2023 December 31, 2022 (Dollars in thousands) Beginning balance $ 4,095 $ 4,751 Adoption of ASU 2022-02 16 — Balance at October 1, 2023 4,111 4,751 (Release)/provision for credit losses (277) 840 Ending balance $ 3,834 $ 5,591 |
