FDIC Indemnification Asset

9 Months Ended

Jun. 30, 2020

Banking and Thrift, Other Disclosures [Abstract]

FDIC Indemnification Asset

FDIC Indemnification AssetUnder the terms of the purchase and assumption agreement with the FDIC with regard to the TierOne Bank acquisition, the Company is reimbursed for a portion of the losses incurred on covered assets under the non-commercial loss share agreement, which ended on June 4, 2020. As covered assets are resolved, whether through repayment, short sale of the underlying collateral, the foreclosure on or sale of collateral, or the sale or charge-off of loans or other repossessed property, any differences between the carrying value of the covered assets versus the payments received during the resolution process that are reimbursable by the FDIC are recognized as reductions in the FDIC indemnification asset. Any gains or losses realized from the resolution of covered assets reduce or increase, respectively, the amount recoverable from the FDIC.

The following table represents a summary of the activity related to the FDIC indemnification asset for the three and nine months ended June 30, 2020 and 2019.

	Three Months Ended June 30,				Nine Months Ended June 30,
	2020		2019		2020		2019
	(dollars in thousands)
Balance, beginning of period	$	481	$	1,552	$	1,079	$	2,502
Amortization	(371)		(301)		(1,012)		(1,154)
Changes in expected reimbursements from FDIC for changes in expected credit losses	—		2		—		(11)
Changes in reimbursable expenses	—		—		—		(41)
Payments (reimbursements) of covered losses to (from) the FDIC	3		17		46		(26)
Balance, end of period	$	113	$	1,270	$	113	$	1,270

The loss claims filed are subject to review, approval, and annual audits by the FDIC or its assigned agents for compliance with the terms in the loss sharing agreement which ended June 4, 2020. The final claim certificate was filed in July 2020.