FDIC Indemnification Asset

12 Months Ended

Sep. 30, 2020

Transfers and Servicing of Financial Assets [Abstract]

Under the terms of the purchase and assumption agreement with the FDIC with regard to the TierOne Bank acquisition, the Company was 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 were 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 were reimbursable by the FDIC was recognized as reductions in the FDIC indemnification asset. Any gains or losses realized from the resolution of covered assets reduced or increased, respectively, the amount recoverable from the FDIC.

The following table represents a summary of the activity related to the FDIC indemnification asset for the fiscal years ended September 30, 2020, 2019 and 2018.


	Fiscal Years Ended September 30,
	2020		2019		2018
	(dollars in thousands)
Balance, beginning of period	$	1,079	$	2,502	$	5,704
Amortization	(1,012)		(1,386)		(2,778)
Changes in expected reimbursements from FDIC for changes in expected credit losses	—		(10)		(122)
Changes in reimbursable expenses	—		(41)		(1,072)
Payments of covered losses to the FDIC	47		14		770
Settlement upon expiration of loss-sharing arrangement	(114)		—		—
Balance, end of period	$	—	$	1,079	$	2,502

The loss claims filed were 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.