Segment Reporting

9 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Reporting Disclosure

14. Segment Reporting

The Company’s operations include two primary segments: core banking and SBA lending. The core banking segment originates residential, commercial and consumer loans and attracts deposits from its customer base. Net interest income from loans and investments that are funded by deposits and borrowings is the primary revenue for the core banking segment. The SBA lending segment originates loans guaranteed by the SBA, subsequently selling the guaranteed portion to outside investors. Net gains on sales of loans and net interest income are the primary sources of revenue for the SBA lending segment.

The core banking segment is comprised primarily by the Bank and First Savings Investments, Inc., while the SBA lending segment’s revenues are comprised primarily of net interest income and gains on the sales of SBA loans generated by Q2 beginning January 1, 2017 and SBA loan related income of the Bank prior to the formation of Q2.

The following segment financial information has been derived from the internal financial statements of the Company which are used by management to monitor and manage financial performance. The accounting policies of the two segments are the same as those of the Company. The amounts reflected in the “Other” column in the below tables represent combined balances of the Company and the Captive, and are the primary differences between the sum of the segment amounts and consolidated totals, along with amounts to eliminate transactions between segments.

	Core ‎Banking		SBA ‎Lending		Other			Consolidated ‎Totals
	(In thousands)
Three Months Ended June 30, 2018:
Net interest income	$	8,688	$	810	$	9		$	9,507
Net gains on sales of loans, SBA		-		1,558		-			1,558
Noncash items:
Provision for loan losses		52		214		-			266
Depreciation and amortization		349		12		-			361
Income tax expense (benefit)		825		-		(129	)		696
Segment profit		2,336		1,166		175			3,677
Segment assets at June 30, 2018		1,026,998		64,206		(55,858	)		1,035,346

	Core ‎Banking			SBA ‎Lending		Other			Consolidated ‎Totals
	(In thousands)
Nine Months Ended June 30, 2018:
Net interest income	$	24,182		$	2,078	$	23		$	26,283
Net gains on sales of loans, SBA		-			4,585		-			4,585
Noncash items:
Provision for loan losses		(86	)		1,185		-			1,099
Depreciation and amortization		957			38		-			995
Income tax expense (benefit)		2,006			-		(350	)		1,656
Segment profit		6,550			2,559		283			9,392
Segment assets at June 30, 2018		1,026,998			64,206		(55,858	)		1,035,346

	Core ‎Banking		SBA ‎Lending		Other			Consolidated ‎Totals
	(In thousands)
Three Months Ended June 30, 2017:
Net interest income	$	6,993	$	533	$	6		$	7,532
Net gains on sales of loans, SBA		-		938		-			938
Noncash items:
Provision for loan losses		200		121		-			321
Depreciation and amortization		278		11		-			289
Income tax expense (benefit)		597		-		(11	)		586
Segment profit		1,959		405		79			2,443
Segment assets at June 30, 2017		869,920		45,900		(41,738	)		874,082

	Core ‎Banking		SBA ‎Lending		Other			Consolidated ‎Totals
	(In thousands)
Nine Months Ended June 30, 2017:
Net interest income	$	20,454	$	1,239	$	15		$	21,708
Net gains on sales of loans, SBA		-		2,741		-			2,741
Noncash items:
Provision for loan losses		665		337		-			1,002
Depreciation and amortization		840		31		-			871
Income tax expense (benefit)		1,819		-		(139	)		1,680
Segment profit		5,582		1,046		346			6,974
Segment assets at June 30, 2017		869,920		45,900		(41,738	)		874,082