Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Magyar Bancorp, Inc. | |
Entity Central Index Key | 0001337068 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Document Period End Date | Mar. 31, 2020 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 5,810,746 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 000-51726 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Assets | ||
Cash | $ 1,469 | $ 825 |
Interest earning deposits with banks | 27,672 | 20,644 |
Total cash and cash equivalents | 29,141 | 21,469 |
Investment securities - available for sale, at fair value | 9,573 | 16,703 |
Investment securities - held to maturity, at amortized cost (fair value of $30,139 and $29,344 at March 31, 2020 and September 30, 2019, respectively) | 30,042 | 29,481 |
Federal Home Loan Bank of New York stock, at cost | 1,992 | 2,222 |
Loans receivable, net of allowance for loan losses of $5,525 and $4,888 at March 31, 2020 and September 30, 2019, respectively | 541,921 | 518,217 |
Bank owned life insurance | 13,808 | 13,647 |
Accrued interest receivable | 2,150 | 2,133 |
Premises and equipment, net | 15,792 | 16,172 |
Other real estate owned ("OREO") | 6,727 | 7,528 |
Other assets | 7,014 | 2,756 |
Total assets | 658,160 | 630,328 |
Liabilities | ||
Deposits | 560,938 | 530,075 |
Escrowed funds | 2,565 | 2,399 |
Federal Home Loan Bank of New York advances | 31,079 | 36,189 |
Accrued interest payable | 190 | 191 |
Accounts payable and other liabilities | 7,880 | 6,823 |
Total liabilities | 602,652 | 575,677 |
Stockholders' equity | ||
Preferred stock: $.01 Par Value, 1,000,000 shares authorized; none issued | ||
Common stock: $.01 Par Value, 8,000,000 shares authorized; 5,923,742 issued; 5,810,746 and 5,820,746 shares outstanding at March 31, 2020 and September 30, 2019, respectively, at cost | 59 | 59 |
Additional paid-in capital | 26,316 | 26,317 |
Treasury stock: 112,996 and 102,996 shares at March 31, 2020 and September 30, 2019, respectively, at cost | (1,242) | (1,152) |
Unearned Employee Stock Ownership Plan shares | (141) | (214) |
Retained earnings | 31,829 | 30,971 |
Accumulated other comprehensive loss | (1,313) | (1,330) |
Total stockholders' equity | 55,508 | 54,651 |
Total liabilities and stockholders' equity | $ 658,160 | $ 630,328 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Fair value of investment securities - held to maturity | $ 30,139 | $ 29,344 |
Allowance for loan losses | $ 5,525 | $ 4,888 |
Preferred stock; par value | $ 0.01 | $ 0.01 |
Preferred stock; shares authorized | 1,000,000 | 1,000,000 |
Preferred stock; shares issued | 0 | 0 |
Common stock; par value | $ 0.01 | $ 0.01 |
Common stock; shares authorized | 8,000,000 | 8,000,000 |
Common stock; shares issued | 5,923,742 | 5,923,742 |
Common stock, shares outstanding | 5,810,746 | 5,820,746 |
Treasury stock, shares | 112,996 | 102,996 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Interest and dividend income | ||||
Loans, including fees | $ 6,224 | $ 6,226 | $ 12,620 | $ 12,353 |
Investment securities | ||||
Taxable | 341 | 546 | 679 | 1,034 |
Federal Home Loan Bank of New York stock | 34 | 37 | 71 | 82 |
Total interest and dividend income | 6,599 | 6,809 | 13,370 | 13,469 |
Interest expense | ||||
Deposits | 1,398 | 1,508 | 2,845 | 2,946 |
Borrowings | 169 | 180 | 365 | 370 |
Total interest expense | 1,567 | 1,688 | 3,210 | 3,316 |
Net interest and dividend income | 5,032 | 5,121 | 10,160 | 10,153 |
Provision for loan losses | 420 | 106 | 631 | 307 |
Net interest and dividend income after provision for loan losses | 4,612 | 5,015 | 9,529 | 9,846 |
Other income | ||||
Service charges | 196 | 279 | 462 | 600 |
Income on bank owned life insurance | 79 | 73 | 161 | 147 |
Other operating income | 31 | 30 | 61 | 61 |
Gains on sales of loans | 151 | 26 | 151 | |
Gains on sales of investment securities | 68 | 32 | 68 | 32 |
Total other income | 374 | 565 | 778 | 991 |
Other expenses | ||||
Compensation and employee benefits | 2,584 | 2,517 | 5,172 | 4,960 |
Occupancy expenses | 743 | 744 | 1,486 | 1,484 |
Professional fees | 430 | 278 | 778 | 569 |
Data processing expenses | 147 | 154 | 301 | 307 |
OREO expenses | 30 | 214 | 133 | 261 |
FDIC deposit insurance premiums | 108 | 109 | 216 | 216 |
Loan servicing expenses | 86 | 47 | 136 | 106 |
Insurance expense | 47 | 49 | 99 | 102 |
Other expenses | 385 | 377 | 769 | 776 |
Total other expenses | 4,560 | 4,489 | 9,090 | 8,781 |
Income before income tax expense | 426 | 1,091 | 1,217 | 2,056 |
Income tax expense | 121 | 324 | 359 | 604 |
Net income | $ 305 | $ 767 | $ 858 | $ 1,452 |
Net income per share-basic and diluted | $ 0.05 | $ 0.13 | $ 0.15 | $ 0.25 |
Weighted average basic and diluted shares outstanding | 5,819,879 | 5,820,746 | 5,820,746 | 5,820,746 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 305 | $ 767 | $ 858 | $ 1,452 |
Other comprehensive income | ||||
Unrealized gain on securities available for sale | 105 | 297 | 91 | 639 |
Less reclassification adjustments for: | ||||
Net gains realized on securities available for sale | (68) | (32) | (68) | (32) |
Other comprehensive income, before tax | 37 | 265 | 23 | 607 |
Deferred income tax effect | (10) | (75) | (6) | (170) |
Total other comprehensive income | 27 | 190 | 17 | 437 |
Total comprehensive income | $ 332 | $ 957 | $ 875 | $ 1,889 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Unearned ESOP Shares [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Sep. 30, 2018 | $ 59 | $ 26,310 | $ (1,152) | $ (356) | $ 27,975 | $ (1,474) | $ 51,362 |
Balance, shares at Sep. 30, 2018 | 5,820,746 | ||||||
Net income | 685 | 685 | |||||
Other comprehensive income | 246 | 246 | |||||
ESOP shares allocated | 4 | 35 | 39 | ||||
Balance at Dec. 31, 2018 | $ 59 | 26,314 | (1,152) | (321) | 28,660 | (1,228) | 52,332 |
Balance, shares at Dec. 31, 2018 | 5,820,746 | ||||||
Balance at Sep. 30, 2018 | $ 59 | 26,310 | (1,152) | (356) | 27,975 | (1,474) | 51,362 |
Balance, shares at Sep. 30, 2018 | 5,820,746 | ||||||
Net income | 1,452 | ||||||
Other comprehensive income | 437 | ||||||
Balance at Mar. 31, 2019 | $ 59 | 26,314 | (1,152) | (285) | 29,427 | (1,037) | 53,326 |
Balance, shares at Mar. 31, 2019 | 5,820,746 | ||||||
Balance at Dec. 31, 2018 | $ 59 | 26,314 | (1,152) | (321) | 28,660 | (1,228) | 52,332 |
Balance, shares at Dec. 31, 2018 | 5,820,746 | ||||||
Net income | 767 | 767 | |||||
Other comprehensive income | 191 | 190 | |||||
ESOP shares allocated | 36 | 36 | |||||
Balance at Mar. 31, 2019 | $ 59 | 26,314 | (1,152) | (285) | 29,427 | (1,037) | 53,326 |
Balance, shares at Mar. 31, 2019 | 5,820,746 | ||||||
Balance at Sep. 30, 2019 | $ 59 | 26,317 | (1,152) | (214) | 30,971 | (1,330) | $ 54,651 |
Balance, shares at Sep. 30, 2019 | 5,820,746 | 5,820,746 | |||||
Net income | 553 | $ 553 | |||||
Other comprehensive income | (10) | (10) | |||||
ESOP shares allocated | 2 | 36 | 38 | ||||
Balance at Dec. 31, 2019 | $ 59 | 26,319 | (1,152) | (178) | 31,524 | (1,340) | 55,232 |
Balance, shares at Dec. 31, 2019 | 5,820,746 | ||||||
Balance at Sep. 30, 2019 | $ 59 | 26,317 | (1,152) | (214) | 30,971 | (1,330) | $ 54,651 |
Balance, shares at Sep. 30, 2019 | 5,820,746 | 5,820,746 | |||||
Net income | $ 858 | ||||||
Other comprehensive income | 17 | ||||||
Balance at Mar. 31, 2020 | $ 59 | 26,316 | (1,242) | (141) | 31,829 | (1,313) | $ 55,508 |
Balance, shares at Mar. 31, 2020 | 5,810,746 | 5,810,746 | |||||
Balance at Dec. 31, 2019 | $ 59 | 26,319 | (1,152) | (178) | 31,524 | (1,340) | $ 55,232 |
Balance, shares at Dec. 31, 2019 | 5,820,746 | ||||||
Net income | 305 | 305 | |||||
Other comprehensive income | 27 | 27 | |||||
Purchase of treasury stock | (90) | (90) | |||||
Purchase of treasury stock, shares | (10,000) | ||||||
ESOP shares allocated | (3) | 37 | 34 | ||||
Balance at Mar. 31, 2020 | $ 59 | $ 26,316 | $ (1,242) | $ (141) | $ 31,829 | $ (1,313) | $ 55,508 |
Balance, shares at Mar. 31, 2020 | 5,810,746 | 5,810,746 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | $ 858 | $ 1,452 |
Adjustment to reconcile net income to net cash (used in) provided by operating activities | ||
Depreciation expense | 434 | 468 |
Premium amortization on investment securities, net | 50 | 56 |
Provision for loan losses | 631 | 307 |
Provision for loss on other real estate owned | 60 | 212 |
Originations of SBA loans held for sale | (262) | (2,170) |
Proceeds from the sales of SBA loans | 288 | 2,321 |
Gains on sale of loans receivable | (26) | (151) |
Gains on sales of investment securities | (68) | (32) |
Gains on the sales of other real estate owned | (16) | (35) |
ESOP compensation expense | 73 | 75 |
Deferred income tax benefit | (288) | (158) |
Increase in accrued interest receivable | (17) | (56) |
Increase in surrender value of bank owned life insurance | (161) | (147) |
Increase in other assets | (142) | (463) |
(Decrease) increase in accrued interest payable | (1) | 29 |
Decrease in accounts payable and other liabilities | (2,778) | (120) |
Net income to net cash (used in) provided by operating activities | (1,365) | 1,588 |
Investing activities | ||
Net increase in loans receivable | (14,266) | (11,643) |
Purchases of loans receivable | (10,069) | |
Proceeds from the sale of loans receivable | 4,386 | |
Purchases of investment securities held to maturity | (3,679) | (1,645) |
Purchases of investment securities available for sale | (1,516) | (3,088) |
Sales of investment securities available for sale | 6,073 | 947 |
Principal repayments on investment securities held to maturity | 3,093 | 1,338 |
Principal repayments on investment securities available for sale | 2,639 | 878 |
Purchases of premises and equipment | (54) | (64) |
Investment in other real estate owned | (11) | |
Proceeds from other real estate owned | 757 | 862 |
Redemption of Federal Home Loan Bank stock | 230 | 133 |
Net cash used in investing activities | (16,792) | (7,907) |
Financing activities | ||
Net increase in deposits | 30,863 | 41,657 |
Net increase in escrowed funds | 166 | 429 |
Proceeds from long-term advances | 2,591 | 3,975 |
Repayments of long-term advances | (7,701) | (6,940) |
Purchase of treasury stock | (90) | |
Net cash provided by financing activities | 25,829 | 39,121 |
Net increase in cash and cash equivalents | 7,672 | 32,802 |
Cash and cash equivalents, beginning of year | 21,469 | 15,368 |
Cash and cash equivalents, end of year | 29,141 | 48,170 |
Supplemental disclosures of cash flow information | ||
Interest | 3,211 | 3,286 |
Income taxes | 1,095 | 414 |
Non-cash operating activities | ||
Initial recognition of lease liability and right-of-use asset | $ 3,835 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE A – BASIS OF PRESENTATION The consolidated financial statements include the accounts of Magyar Bancorp, Inc. (the “Company”), its wholly owned subsidiary, Magyar Bank (the “Bank”), and the Bank’s wholly owned subsidiaries Magyar Service Corporation, Hungaria Urban Renewal, LLC, and MagBank Investment Company. All material intercompany transactions and balances have been eliminated. The Company prepares its financial statements on the accrual basis and in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). The unaudited information furnished herein reflects all adjustments (consisting of normal recurring accruals) that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Operating results for the three and six months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending September 30, 2020. The September 30, 2019 information has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by US GAAP for complete consolidated financial statements. The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of other real estate owned, and the assessment of realizability of deferred income tax assets. The Company has evaluated events and transactions occurring subsequent to the balance sheet date of March 31, 2020 for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. The markets served by the Company have been significantly impacted by the Coronavirus/COVID-19 pandemic (“COVID-19”), which started during the first calendar quarter of 2020. Please refer to Note O- Subsequent Events for more information. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Mar. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE B- RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses In October 2019, the FASB voted to defer the effective date of ASU 2016-13 for smaller reporting companies to fiscal years beginning after December 15, 2022 (October 1, 2023 for the Company), and interim periods within those fiscal years. The Company currently expects to continue to qualify as a smaller reporting company, based upon the current SEC definition, and as a result, will likely be able to defer implementation of the new standard for a period of time. The Company did not early adopt as of January 1, 2020, but will continue to review factors that might indicate that the full deferral time period should not be used. The Company continues to evaluate the impact the new standard will have on the accounting for credit losses, but the Company may recognize a one-time cumulative-effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, consistent with regulatory expectations set forth in interagency guidance issued at the end of 2016. The Company cannot yet determine the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on its consolidated financial condition or results of operations. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Topic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | NOTE C - CONTINGENCIES The Company, from time to time, is a party to routine litigation that arises in the normal course of business. In the opinion of management, the resolution of this litigation, if any, would not have a material adverse effect on the Company’s consolidated financial position or results of operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE D - EARNINGS PER SHARE Basic and diluted earnings per share for the three and six months ended March 31, 2020 and 2019 were calculated by dividing net income by the weighted-average number of shares outstanding for the period considering the effect of dilutive equity options and stock awards for the diluted earnings per share calculations. Three Months Six Months Ended March 31, Ended March 31, 2020 2019 2020 2019 (In thousands except for per share data) Income applicable to common shares $ 305 $ 767 $ 858 $ 1,452 Weighted average number of common shares outstanding - basic 5,820 5,821 5,821 5,821 Stock options and restricted stock — — — — Weighted average number of common shares and common share equivalents - diluted 5,820 5,821 5,821 5,821 Basic earnings per share $ 0.05 $ 0.13 $ 0.15 $ 0.25 Diluted earnings per share $ 0.05 $ 0.13 $ 0.15 $ 0.25 There were no outstanding stock awards or options to purchase common stock at March 31, 2020 and 2019. |
STOCK-BASED COMPENSATION AND ST
STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM | 6 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM | NOTE E – STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM The Company follows FASB Accounting Standards Codification (“ASC”) Section 718, Compensation-Stock Compensation, which covers a wide range of share-based compensation arrangements including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. ASC 718 requires that compensation cost relating to share-based payment transactions be recognized in consolidated financial statements. The cost is measured based on the fair value of the equity or liability instruments issued. Stock options generally vest over a five-year service period and expire ten years from issuance. The fair values of all option grants were estimated using the Black-Scholes option-pricing model. Management recognizes compensation expense for the fair values of these awards, which have graded vesting, on a straight-line basis over the vesting period of the awards. Once vested, these awards are irrevocable. There were no grants, vested shares or forfeitures of non-vested restricted stock awards the three and six months ended March 31, 2020 and 2019. There were no stock option and stock award expenses included with compensation expense for the three and six months ended March 31, 2020 and 2019. The Company announced in November 2007 its second stock repurchase program of up to 5% of its publicly-held outstanding shares of common stock, or 129,924 shares. Through March 31, 2020, the Company had repurchased a total of 91,000 shares of its common stock at an average cost of $8.41 per share under this program, including 10,000 shares purchased at an average price of $9.03 per share during the three months ended March 31, 2020. No shares were repurchased during the three or six months ended March 31, 2019. Under the stock repurchase program, 38,924 shares of the 129,924 shares authorized remained available for repurchase as of March 31, 2020. The Company’s intended use of the repurchased shares is for general corporate purposes. The Company held 112,996 total treasury stock shares at March 31, 2020. The Company has an Employee Stock Ownership Plan ("ESOP") for the benefit of employees of the Company and the Bank who meet the eligibility requirements as defined in the plan. In 2006 the ESOP trust purchased 217,863 shares of common stock in the open market using proceeds of a loan from the Company. The total cost of shares purchased by the ESOP trust was $2.3 million, reflecting an average cost per share of $10.58. The Bank makes cash contributions to the ESOP on an annual basis sufficient to enable the ESOP to make the required loan payments to the Company. The loan bears a variable interest rate that adjusts annually every January 1 st As the debt is repaid, shares are released as collateral and allocated to qualified employees. Accordingly, the shares pledged as collateral are reported as unearned ESOP shares in the Consolidated Balance Sheets. The Company accounts for its ESOP in accordance with FASB ASC Topic 718, “Employer’s Accounting for Employee Stock Ownership Plans”. As shares are released from collateral, the Company reports compensation expense equal to the current market price of the shares, and the shares become outstanding for earnings per share computations. At March 31, 2020, shares allocated to participants totaled 190,661. Unallocated ESOP shares held in suspense totaled 27,202 and had a fair market value of $244,818. The Company's contribution expense for the ESOP was $73,000 and $75,000 for the six months ended March 31, 2020 and 2019, respectively. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 6 Months Ended |
Mar. 31, 2020 | |
Other comprehensive income | |
OTHER COMPREHENSIVE INCOME | NOTE F – OTHER COMPREHENSIVE INCOME The components of other comprehensive income and the related income tax effects are as follows: Three Months Ended March 31, 2020 2019 Tax Net of Tax Net of Before Tax Benefit Tax Before Tax Benefit Tax Amount (Expense) Amount Amount (Expense) Amount (In thousands) Unrealized holding gain arising during period on: Available-for-sale investments $ 105 $ (29 ) $ 76 $ 297 $ (84 ) $ 213 Less reclassification adjustments for: Net gains realized on securities available for sale (a) (b) (68 ) 19 (49 ) (32 ) 9 (23 ) Other comprehensive income, net $ 37 $ (10 ) $ 27 $ 265 $ (75 ) $ 190 Six Months Ended March 31, 2020 2019 Tax Net of Tax Net of Before Tax Benefit Tax Before Tax Benefit Tax Amount (Expense) Amount Amount (Expense) Amount (In thousands) Unrealized holding gain arising during period on: Available-for-sale investments $ 91 $ (25 ) $ 66 $ 639 $ (179 ) $ 460 Less reclassification adjustments for: Net gains realized on securities available for sale (a) (b) (68 ) 19 (49 ) (32 ) 9 (23 ) Other comprehensive income, net $ 23 $ (6 ) $ 17 $ 607 $ (170 ) $ 437 (a) Realized gains on securities transactions included in gains on sales of investment securities in the accompanying Consolidated Statements of Operation (b) Tax effect included in income tax expense in the accompanying Consolidated Statements of Operation |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | NOTE G – FAIR VALUE DISCLOSURES The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as held-to-maturity securities, mortgage servicing rights, loans receivable and other real estate owned, or OREO. These non-recurring fair value adjustments involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. In accordance with ASC 820, the Company groups its assets and liabilities at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. The Company based its fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following is a description of valuation methodologies used for assets measured at fair value on a recurring basis. Securities available-for-sale The securities available-for-sale portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income/loss in stockholders’ equity. The securities available-for-sale portfolio consists of U.S government-sponsored mortgage-backed securities and private label mortgage-backed securities. The fair values of these securities are obtained from an independent nationally recognized pricing service. An independent pricing service provides the Company with prices which are categorized as Level 2, as quoted prices in active markets for identical assets are generally not available for the securities in the Company’s portfolio. Various modeling techniques are used to determine pricing for Company’s mortgage-backed securities, including option pricing and discounted cash flow models. The inputs to these models include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a recurring basis. Fair Value at March 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Securities available for sale: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 468 $ — $ 468 $ — Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential 9,105 — 9,105 — Total securities available for sale $ 9,573 $ — $ 9,573 $ — Fair Value at September 30, 2019 Total Level 1 Level 2 Level 3 (In thousands) Securities available for sale: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 495 $ — $ 495 $ — Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential 14,708 — 14,708 — Debt securities 1,500 — 1,500 — Total securities available for sale $ 16,703 $ — $ 16,703 $ — The following is a description of valuation methodologies used for assets measured at fair value on a non-recurring basis. Mortgage Servicing Rights, net Mortgage Servicing Rights (MSRs) are carried at the lower of cost or estimated fair value. The estimated fair value of MSR is determined through a calculation of future cash flows, incorporating estimates of assumptions market participants would use in determining fair value including market discount rates, prepayment speeds, servicing income, servicing costs, default rates and other market driven data, including the market’s perception of future interest rate movements and, as such, are classified as Level 3. The Company had MSRs totaling $20,000 and $26,000 at March 31, 2020 and September 30, 2019, respectively. Impaired Loans Loans which meet certain criteria are evaluated individually for impairment. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. All amounts due according to the contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. Three impairment measurement methods are used, depending upon the collateral securing the asset: 1) the present value of expected future cash flows discounted at the loan’s effective interest rate (the rate of return implicit in the loan); 2) the asset’s observable market price; or 3) the fair value of the collateral, less anticipated selling and disposition costs, if the asset is collateral dependent. The regulatory agencies require the last method for loans from which repayment is expected to be provided solely by the underlying collateral. The Company’s impaired loans are generally collateral dependent and, as such, are carried at the estimated fair value of the collateral less estimated selling costs. Fair value is estimated through current appraisals, and adjusted by management as necessary, to reflect current market conditions and, as such, are generally classified as Level 3. Appraisals of collateral securing impaired loans are conducted by approved, qualified, and independent third-party appraisers. Such appraisals are ordered via the Company’s credit administration department, independent from the lender who originated the loan, once the loan is deemed impaired, as described in the previous paragraph. Impaired loans are generally re-evaluated with an updated appraisal within one year of the last appraisal. The Company discounts the appraised “as is” value of the collateral for estimated selling and disposition costs and compares the resulting fair value of collateral to the outstanding loan amount. If the outstanding loan amount is greater than the discounted fair value, the Company requires a reduction in the outstanding loan balance or additional collateral before considering an extension to the loan. If the borrower is unwilling or unable to reduce the loan balance or increase the collateral securing the loan, it is deemed impaired and the difference between the loan amount and the fair value of collateral, net of estimated selling and disposition costs, is charged off through a reduction of the allowance for loan loss. Other Real Estate Owned The fair value of other real estate owned is determined through current appraisals, and adjusted as necessary, by management, to reflect current market conditions and anticipated selling and disposition costs. As such, other real estate owned is generally classified as Level 3. The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a non-recurring basis at March 31, 2020 and September 30, 2019. Fair Value at March 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Impaired loans $ 9,480 $ — $ — $ 9,480 Other real estate owned 6,727 — — 6,727 Total $ 16,207 $ — $ — $ 16,207 Fair Value at September 30, 2019 Total Level 1 Level 2 Level 3 (In thousands) Impaired loans $ 6,835 $ — $ — $ 6,835 Other real estate owned 7,528 — — 7,528 Total $ 14,363 $ — $ — $ 14,363 The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation March 31, 2020 Estimate Techniques Unobservable Input Range (Weighted Average) Impaired loans $ 9,480 Appraisal of (1) Appraisal adjustments (2) -2.5% to -8.0% (-4.0%) Other real estate owned $ 6,727 Appraisal of (1) Liquidation expenses (2) -1.3% to -53.8% (-15.6%) Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation September 30, 2019 Estimate Techniques Unobservable Input Range (Weighted Average) Impaired loans $ 6,835 Appraisal of Appraisal adjustments (2) -1.9% to -67.2% (-25.0%) Other real estate owned $ 7,528 Appraisal of Liquidation expenses (2) -9.2% to -48.5% (-19.4%) (1) Fair value is generally determined through independent appraisals for the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments carried at cost or amortized cost as of March 31, 2020 and September 30, 2019. For short-term financial assets such as cash and cash equivalents and accrued interest receivable, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as interest-bearing demand, NOW, and money market savings deposits, the carrying amount is a reasonable estimate of fair value due to these products being payable on demand and having no stated maturity. Carrying Fair Fair Value Measurement Placement Value Value (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2020 Financial instruments - assets Investment securities held to maturity $ 30,042 $ 30,139 $ — $ 30,139 $ — Loans 541,921 554,893 — — 554,893 Financial instruments - liabilities Certificates of deposit including retirement certificates 128,243 130,492 — 130,492 — Borrowings 31,079 31,998 — 31,998 — September 30, 2019 Financial instruments - assets Investment securities held to maturity $ 29,481 $ 29,344 $ — $ 29,344 $ — Loans 518,217 527,088 — — 527,088 Financial instruments - liabilities Certificates of deposit including retirement certificates 116,776 117,730 — 117,730 — Borrowings 36,189 36,583 — 36,583 — There were no transfers between fair value measurement placements for the six months ended March 31, 2020. |
LEASES
LEASES | 6 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | NOTE H – LEASES The Company adopted Accounting Standard Update (“ASU”) No. 2016-02, Leases (Topic 842) The Company has operating leases for five branch locations. Our leases have remaining lease terms of up to 11 years, some of which include options to extend the leases for up to 10 additional years. Operating leases are recorded as ROU assets and lease liabilities and are included within Other assets and Accounts payable and other liabilities, respectively, on our Consolidated Balance Sheets. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement base on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate. The Company recorded a $3.8 million operating lease right-of-use asset and operating lease liability beginning October 1, 2019. The incremental borrowing rate used by the Company to value its operating leases was based on the interpolated term advance rate available from the Federal Home Loan Bank of New York, based on the remaining lease term as of October 1, 2019. At March 31, 2020, the Company’s operating lease right-of-use assets and operating lease liabilities totaled $3.5 million and $3.9 million, respectively. The following table presents the balance sheet information related to our leases: March 31, 2020 (Dollars in thousands) Operating lease right-of-use asset $ 3,538 Operating lease liabilities $ 3,943 Weighted average remaining lease term in years 8.0 Weighted average discount rate 2.2% The following table summarizes the maturity of our remaining lease liabilities by year: March 31, 2020 (In thousands) For the Year Ending: 2020 $ 350 2021 705 2022 595 2023 602 2024 602 2025 and thereafter 1,528 Total lease payments 4,382 Less imputed interest (439 ) Present value of lease liabilities $ 3,943 Total lease expense recorded on the Consolidated Statements of Income within Occupancy expense were $403,000 and $392,000 for the six months ended March 31, 2020 and 2019, respectively. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE I - INVESTMENT SECURITIES The following tables summarize the amortized cost and fair values of securities available for sale at March 31, 2020 and September 30, 2019: March 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available for sale: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 445 $ 23 $ — $ 468 Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential 9,045 95 (35 ) 9,105 Total securities available for sale $ 9,490 $ 118 $ (35 ) $ 9,573 September 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available for sale: Obligations of U.S. government agencies: Mortgage backed securities - residential $ 480 $ 15 $ — $ 495 Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential 14,663 80 (35 ) 14,708 Debt securities 1,500 — — 1,500 Total securities available for sale $ 16,643 $ 95 $ (35 ) $ 16,703 The maturities of the debt securities and certain information regarding the mortgage-backed securities available for sale at March 31, 2020 are summarized in the following table: March 31, 2020 Amortized Fair Cost Value (In thousands) Due within 1 year $ — $ — Due after 1 but within 5 years — — Due after 5 but within 10 years — — Due after 10 years — — Total debt securities — — Mortgage-backed securities: Residential 9,490 9,573 Commercial — — Total $ 9,490 $ 9,573 The following tables summarize the amortized cost and fair values of securities held to maturity at March 31, 2020 and September 30, 2019: March 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities held to maturity: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 1,917 $ 30 $ (37 ) $ 1,910 Mortgage-backed securities - commercial 810 — (6 ) 804 Obligations of U.S. government-sponsored enterprises: Mortgage-backed-securities - residential 23,078 759 (9 ) 23,828 Debt securities 970 30 — 1,000 Private label mortgage-backed securities - residential 267 — (34 ) 233 Corporate securities 3,000 — (636 ) 2,364 Total securities held to maturity $ 30,042 $ 819 $ (722 ) $ 30,139 September 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities held to maturity: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 445 $ — $ (54 ) $ 391 Mortgage-backed securities - commercial 842 — (6 ) 836 Obligations of U.S. government-sponsored enterprises: Mortgage backed securities - residential 22,363 276 (47 ) 22,592 Debt securities 2,468 10 — 2,478 Private label mortgage-backed securities - residential 363 7 — 370 Corporate securities 3,000 — (323 ) 2,677 Total securities held to maturity $ 29,481 $ 293 $ (430 ) $ 29,344 The maturities of the debt securities and certain information regarding the mortgage backed securities held to maturity at March 31, 2020 are summarized in the following table: March 31, 2020 Amortized Fair Cost Value (In thousands) Due within 1 year $ — $ — Due after 1 but within 5 years — — Due after 5 but within 10 years 3,970 3,364 Due after 10 years — — Total debt securities 3,970 3,364 Mortgage-backed securities: Residential 25,262 25,971 Commercial 810 804 Total $ 30,042 $ 30,139 |
IMPAIRMENT OF INVESTMENT SECURI
IMPAIRMENT OF INVESTMENT SECURITIES | 6 Months Ended |
Mar. 31, 2020 | |
Schedule of Investments [Abstract] | |
IMPAIRMENT OF INVESTMENT SECURITIES | NOTE J – IMPAIRMENT OF INVESTMENT SECURITIES The Company recognizes credit-related other-than-temporary impairment on debt securities in earnings while noncredit-related other-than-temporary impairment on debt securities not expected to be sold are recognized in other comprehensive income. The Company reviews its investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and the intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in the market. The Company evaluates its intent and ability to hold debt securities based upon its investment strategy for the particular type of security and its cash flow needs, liquidity position, capital adequacy and interest rate risk position. In addition, the risk of future other-than-temporary impairment may be influenced by prolonged recession in the U.S. economy, changes in real estate values and interest deferrals. Investment securities with fair values less than their amortized cost contain unrealized losses. The following tables present the gross unrealized losses and fair value at March 31, 2020 and September 30, 2019 for both available for sale and held to maturity securities by investment category and time frame for which the loss has been outstanding: March 31, 2020 Less Than 12 Months 12 Months Or Greater Total Number of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses (Dollars in thousands) Obligations of U.S. government agencies: Mortgage-backed securities - residential 2 $ — $ — $ 380 $ (37 ) $ 380 $ (37 ) Mortgage-backed securities - commercial 1 — — 804 (6 ) 804 (6 ) Obligations of U.S. government-sponsored enterprises Mortgage-backed securities - residential 5 1,228 — 3,952 (44 ) 5,180 (44 ) Private label mortgage-backed securities residential 1 233 (34 ) — — 233 (34 ) Corporate securities 1 — — 2,364 (636 ) 2,364 (636 ) Total 10 $ 1,461 $ (34 ) $ 7,500 $ (723 ) $ 8,961 $ (757 ) September 30, 2019 Less Than 12 Months 12 Months Or Greater Total Number of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses (Dollars in thousands) Obligations of U.S. government agencies: Mortgage-backed securities - residential 2 $ — $ — $ 392 $ (54 ) $ 392 $ (54 ) Mortgage-backed securities - commercial 1 — — 836 (6 ) 836 (6 ) Obligations of U.S. government-sponsored enterprises Mortgage-backed securities - residential 13 1,219 (4 ) 14,429 (78 ) 15,648 (82 ) Corporate securities 1 — — 2,678 (323 ) 2,678 (323 ) Total 17 $ 1,219 $ (4 ) $ 18,335 $ (461 ) $ 19,554 $ (465 ) The Company evaluated these securities and determined that the decline in value was primarily related to fluctuations in the interest rate environment and were not related to any company or industry specific event. At March 31, 2020 and September 30, 2019, there were ten and seventeen, respectively, investment securities with unrealized losses. The Company anticipates full recovery of amortized costs with respect to these securities. The Company does not intend to sell these securities and has determined that it is not more likely than not that the Company would be required to sell these securities prior to maturity or market price recovery. Management has considered factors regarding other than temporarily impaired securities and determined that there are no securities with impairment that is other than temporary as of March 31, 2020 and September 30, 2019. |
LOANS RECEIVABLE, NET AND RELAT
LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES | 6 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES | NOTE K LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES Loans receivable, net were comprised of the following: March 31, September 30, 2020 2019 (In thousands) One-to-four family residential $ 204,575 $ 190,415 Commercial real estate 245,860 232,544 Construction 22,333 28,451 Home equity lines of credit 22,170 17,832 Commercial business 47,684 48,769 Other 4,782 4,990 Total loans receivable 547,404 523,001 Net deferred loan costs 42 104 Allowance for loan losses (5,525 ) (4,888 ) Total loans receivable, net $ 541,921 $ 518,217 The segments of the Banks loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The residential mortgage loan segment is further disaggregated into two classes: amortizing term loans, which are primarily first liens, and home equity lines of credit, which are generally second liens. The commercial real estate loan segment is further disaggregated into three classes: loans secured by multifamily structures, owner-occupied commercial structures, and non-owner occupied nonresidential properties. The construction loan segment consists primarily of loans to developers or investors for the purpose of acquiring, developing and constructing residential or commercial structures and to a lesser extent one-to-four family residential construction loans made to individuals for the acquisition of and/or construction on a lot or lots on which a residential dwelling is to be built. Construction loans to developers and investors have a higher risk profile because the ultimate buyer, once development is completed, is generally not known at the time of the loan. The commercial business loan segment consists of loans made for the purpose of financing the activities of commercial customers and consists primarily of revolving lines of credit. The other loan segment consists primarily of stock-secured installment consumer loans, but also includes unsecured personal loans and overdraft lines of credit connected with customer deposit accounts. Management evaluates individual loans in all segments for possible impairment if the loan either is in nonaccrual status, or is risk rated Substandard and is 90 days or more past due. Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrowers prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Once the determination has been made that a loan is impaired, the recorded investment in the loan is compared to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loans effective interest rate; (b) the loans observable market price; or (c) the fair value of the collateral securing the loan, less anticipated selling and disposition costs. The method is selected on a loan by loan basis, with management primarily utilizing the fair value of collateral method. If there is a shortfall between the fair value of the loan and the recorded investment in the loan, the Company charges the difference to the allowance for loan loss as a charge-off and carries the impaired loan on its books at fair value. It is the Companys policy to evaluate impaired loans on an annual basis to ensure the recorded investment in a loan does not exceed its fair value. The following tables present impaired loans by class, segregated by those for which a specific allowance was required and charged-off and those for which a specific allowance was not necessary at the dates presented: Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal March 31, 2020 Investment Allowance Investment Investment Balance (In thousands) One-to-four family residential $ $ $ 2,177 $ 2,177 $ 2,177 Commercial real estate 599 46 2,768 3,367 3,367 Construction 2,306 175 2,900 5,206 5,206 Commercial business 1,404 1,404 1,404 Total impaired loans $ 2,905 $ 221 $ 9,249 $ 12,154 $ 12,154 Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal September 30, 2019 Investment Allowance Investment Investment Balance (In thousands) One-to-four family residential $ $ $ 1,405 $ 1,405 $ 1,405 Commercial real estate 4,593 4,593 4,593 Construction 2,900 2,900 2,900 Commercial business 1,456 1,456 1,456 Total impaired loans $ $ $ 10,354 $ 10,354 $ 10,354 The average recorded investment in impaired loans was $10.3 million and $7.8 million for the six months ended March 31, 2020 and 2019, respectively. The Companys impaired loans include delinquent non-accrual loans and performing Troubled Debt Restructurings (TDRs), as TDRs remain impaired loans until fully repaid. There were no TDRs during the six months ended March 31, 2020. There was one TDR during the six months ended March 31, 2019 totaling $365,000 that resulted from the restructure of a previously impaired, non-accrual loan . The following tables present the average recorded investment in impaired loans for the periods indicated. There was no interest income recognized on impaired loans during the periods presented. Three Months Six Months Ended March 31, 2020 Ended March 31, 2020 (In thousands) One-to-four family residential $ 1,787 $ 1,659 Commercial real estate 2,995 3,528 Construction 4,053 3,669 Commercial business 1,441 1,446 Average investment in impaired loans $ 10,276 $ 10,302 Three Months Six Months Ended March 31, 2019 Ended March 31, 2019 (In thousands) One-to-four family residential $ 1,240 $ 1,204 Commercial real estate 3,923 3,936 Construction 2,900 1,933 Home equity lines of credit 49 52 Commercial business 646 667 Average investment in impaired loans $ 8,758 $ 7,792 Management uses a ten point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as Pass rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as severe delinquency, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Banks Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. The Asset Review Committee performs monthly reviews of all commercial relationships internally rated 6 (Watch) or worse. Confirmation of the appropriate risk grade is performed by an external loan review company that semi-annually reviews and assesses loans within the portfolio. Generally, the external consultant reviews commercial relationships greater than $500,000 and/or criticized relationships greater than $250,000. Detailed reviews, including plans for resolution, are performed on loans classified as Substandard on a monthly basis. The following tables present the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the Banks internal risk rating system at the dates presented: Special Pass Mention Substandard Doubtful Total (In thousands) March 31, 2020 One-to-four family residential $ 203,308 $ $ 1,267 $ $ 204,575 Commercial real estate 243,683 406 1,771 245,860 Construction 17,035 5,298 22,333 Home equity lines of credit 22,170 22,170 Commercial business 46,435 13 1,236 47,684 Other 4,782 4,782 Total $ 537,413 $ 419 $ 9,572 $ $ 547,404 Special Pass Mention Substandard Doubtful Total (In thousands) September 30, 2019 One-to-four family residential $ 189,938 $ $ 477 $ $ 190,415 Commercial real estate 228,156 1,409 2,979 232,544 Construction 25,551 2,900 28,451 Home equity lines of credit 17,832 17,832 Commercial business 47,541 1,228 48,769 Other 4,990 4,990 Total $ 514,008 $ 1,409 $ 7,584 $ $ 523,001 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans at the dates presented: 30-59 60-89 Days Days 90 Days + Total Non- Total Current Past Due Past Due Past Due Past Due Accrual Loans (Dollars in thousands) March 31, 2020 One-to-four family residential $ 200,712 $ 2,957 $ $ 906 $ 3,863 $ 906 $ 204,575 Commercial real estate 240,540 3,549 1,771 5,320 1,771 245,860 Construction 17,127 5,206 5,206 5,206 22,333 Home equity lines of credit 22,072 6 92 98 22,170 Commercial business 45,028 1,420 1,236 2,656 1,236 47,684 Other 4,782 4,782 Total $ 530,261 $ 7,932 $ 92 $ 9,119 $ 17,143 $ 9,119 $ 547,404 30-59 60-89 Days Days 90 Days + Total Non- Total Current Past Due Past Due Past Due Past Due Accrual Loans (In thousands) September 30, 2019 One-to-four family residential $ 190,301 $ $ $ 114 $ 114 $ 114 $ 190,415 Commercial real estate 229,331 503 58 2,652 3,213 2,652 232,544 Construction 25,551 2,900 2,900 2,900 28,451 Home equity lines of credit 17,832 17,832 Commercial business 47,541 1,228 1,228 1,228 48,769 Other 4,990 4,990 Total $ 515,546 $ 503 $ 58 $ 6,894 $ 7,455 $ 6,894 $ 523,001 An allowance for loan losses (ALL) is maintained to absorb losses from the loan portfolio. The ALL is based on managements continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans (NPLs). The Banks methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative and economic factors. The loans are segmented into classes based on their inherent varying degrees of risk, as described above. Management tracks the historical net charge-off activity by segment and utilizes this figure, as a percentage of the segment, as the general reserve percentage for pooled, homogenous loans that have not been deemed impaired. Typically, an average of losses incurred over a defined number of consecutive historical years is used. Non-impaired credits are segregated for the application of qualitative factors. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources include: national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volumes and terms of loans; effects of changes in lending policies; experience, ability, and depth of lending staff; value of underlying collateral; and concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. Since loans individually evaluated for impairment are promptly written down to their fair value, typically there is no portion of the ALL for loans individually evaluated for impairment. The following table summarizes the ALL by loan category and the related activity for the six months ended March 31, 2020: One-to-Four Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (Dollars in thousands) Balance- September 30, 2019 $ 731 $ 2,066 $ 511 $ 138 $ 1,184 $ 8 $ 250 $ 4,888 Charge-offs Recoveries 2 2 Provision (credit) (26 ) (147 ) 63 2 311 (6 ) 13 210 Balance- December 31, 2019 $ 707 $ 1,919 $ 574 $ 140 $ 1,495 $ 2 $ 263 $ 5,100 Charge-offs Recoveries 5 5 Provision (credit) 227 457 70 42 (287 ) (2 ) (87 ) 420 Balance- March 31, 2020 $ 939 $ 2,376 $ 644 $ 182 $ 1,208 $ $ 176 $ 5,525 The following table summarizes the ALL by loan category and the related activity for the six months ended March 31, 2019: One-to-Four Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (In thousands) Balance- September 30, 2018 $ 687 $ 1,540 $ 493 $ 109 $ 1,151 $ 25 $ 195 $ 4,200 Charge-offs Recoveries 1 1 Provision (credit) 11 50 181 11 31 (21 ) (62 ) 201 Balance- December 31, 2018 $ 698 $ 1,590 $ 674 $ 121 $ 1,182 $ 4 $ 133 $ 4,402 Charge-offs Recoveries 92 92 Provision (credit) (80 ) 95 142 17 (78 ) (1 ) 11 106 Balance- March 31, 2019 $ 710 $ 1,685 $ 816 $ 138 $ 1,104 $ 3 $ 144 $ 4,600 The following tables summarize the ALL by loan category, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of March 31, 2020 and September 30, 2019: One-to-Four Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (Dollars in thousands) Allowance for Loan Losses: Balance - March 31, 2020 $ 939 $ 2,376 $ 644 $ 182 $ 1,208 $ $ 176 $ 5,525 Individually evaluated for impairment 46 175 221 Collectively evaluated for impairment 939 2,330 469 182 1,208 176 5,304 Loans receivable: Balance - March 31, 2020 $ 204,575 $ 245,860 $ 22,333 $ 22,170 $ 47,684 $ 4,782 $ $ 547,404 Individually evaluated for impairment 2,177 3,367 5,206 1,404 12,154 Collectively evaluated for impairment 202,398 242,493 17,127 22,170 46,280 4,782 535,250 One-to-Four Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (In thousands) Allowance for Loan Losses: Balance - September 30, 2019 $ 731 $ 2,066 $ 511 $ 138 $ 1,184 $ 8 $ 250 $ 4,888 Individually evaluated for impairment Collectively evaluated for impairment 731 2,066 511 138 1,184 8 250 4,888 Loans receivable: Balance - September 30, 2019 $ 190,415 $ 232,544 $ 28,451 $ 17,832 $ 48,769 $ 4,990 $ $ 523,001 Individually evaluated for impairment 1,405 4,593 2,900 1,456 10,354 Collectively evaluated for impairment 189,010 227,951 25,551 17,832 47,313 4,990 512,647 The allowance for loan losses is based on estimates, and actual losses will vary from current estimates. Management believes that the segmentation of the loan portfolio into homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. A Troubled Debt Restructuring (TDR) is a loan that has been modified whereby the Bank has agreed to make certain concessions to a borrower to meet the needs of both the borrower and the Bank to maximize the ultimate recovery of a loan. TDR occurs when a borrower is experiencing, or is expected to experience, financial difficulties and the loan is modified using a modification that would otherwise not be granted to the borrower. The types of concessions granted generally include, but are not limited to, interest rate reductions, limitations on the accrued interest charged, term extensions, and deferment of principal. A default on a troubled debt restructured loan for purposes of this disclosure occurs when a borrower is 90 days past due or a foreclosure or repossession of the applicable collateral has occurred. There were no TDRs for the three and six months ended March 31, 2020 compared with one TDR of a one-to-four family residential loan for the three and six months ended March 31, 2019. |
DEPOSITS
DEPOSITS | 6 Months Ended |
Mar. 31, 2020 | |
Deposits [Abstract] | |
DEPOSITS | NOTE L - DEPOSITS A summary of deposits by type of account are summarized as follows: March 31, September 30, 2020 2019 (In thousands) Demand accounts $ 132,177 $ 106,422 Savings accounts 70,859 70,598 NOW accounts 42,567 48,164 Money market accounts 187,092 188,115 Certificates of deposit 112,374 100,016 Retirement certificates 15,869 16,760 Total deposits $ 560,938 $ 530,075 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE M – INCOME TAXES The Company records income taxes using the asset and liability method. Accordingly, deferred tax assets and liabilities: (i) are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns; (ii) are attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases; and (iii) are measured using enacted tax rates expected to apply in the years when those temporary differences are expected to be recovered or settled. Where applicable, deferred tax assets are reduced by a valuation allowance for any portions determined not likely to be realized. The valuation allowance is assessed by management on a quarterly basis and adjusted, by a charge or credit to income tax expense, as changes in facts and circumstances warrant. In assessing whether it is more likely than not that some portion or all of the deferred tax assets will not be realized, management considers projections of future taxable income, the projected periods in which current temporary differences will be deductible, the availability of carry forwards, feasible and permissible tax planning strategies and existing tax laws and regulations. The Company did not have a valuation allowance against its net deferred tax assets at March 31, 2020 or September 30, 2019. A reconciliation of income tax between the amounts calculated based upon pre-tax income at the Company’s federal statutory rate and the amounts reflected in the consolidated statements of operations are as follows: For the Three Months For the Six Months Ended March 31, Ended March 31, 2020 2019 2020 2019 (In thousands) Income tax expense at the statutory federal tax rate of 21% for the three and six months ended March 31, 2020 and 2019 $ 77 $ 203 $ 221 $ 382 State tax expense 57 125 163 236 Other (13 ) (4 ) (25 ) (14 ) Income tax expense $ 121 $ 324 $ 359 $ 604 On July 1, 2018, the State of New Jersey's Assembly signed into law a new bill, effective January 1, 2018, that imposed a temporary surtax on corporations earning New Jersey allocated income in excess of $1 million. The surtax was set at a rate of 2.5% for tax years beginning on or after January 1, 2018 through December 31, 2019, and at a rate of 1.5% for years beginning on or after January 1, 2020, through December 31, 2021. Accordingly, the Company is using an 11.5% State tax rate for the calculation of its State income tax expense for the six months ended March 31, 2020. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 6 Months Ended |
Mar. 31, 2020 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | NOTE N - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company occasionally uses derivative financial instruments, such as interest rate floors and collars, as part of its interest rate risk management. Interest rate caps and floors are agreements whereby one party agrees to pay or receive a floating rate of interest on a notional principal amount for a predetermined period of time if certain market interest rate thresholds are met. The Company considers the credit risk inherent in these contracts to be negligible. As of March 31, 2020 and September 30, 2019, the Company did not hold any interest rate floors or collars. In the normal course of business the Bank is a party to financial instruments with off-balance-sheet risk and in only to meet the financing needs of its customers. These financial instruments are commitments to extend credit are summarized in the below table. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. March 31, September 30, 2020 2019 (In thousands) Financial instruments whose contract amounts represent credit risk Letters of credit $ 967 $ 1,315 Unused lines of credit 51,855 56,405 Fixed rate loan commitments 1,993 3,362 Variable rate loan commitments 16,781 12,141 Total $ 71,596 $ 73,223 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE O – SUBSEQUENT EVENTS Subsequent to our quarter end, global, national and local economies and financial markets have been negatively impacted by the effects of the worldwide COVID-19 pandemic. The Bank is closely monitoring its asset quality, liquidity, and capital positions. Management is actively working to minimize the current and future impact of this unprecedented situation, and is making adjustments to operations where appropriate or necessary to help slow the spread of the virus. As of the date of issuance of these financial statements, the impact the pandemic may have on the Bank’s financial position is not known. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Basic and diluted earnings per share for the three and six months ended March 31, 2020 and 2019 were calculated by dividing net income by the weighted-average number of shares outstanding for the period considering the effect of dilutive equity options and stock awards for the diluted earnings per share calculations. Three Months Six Months Ended March 31, Ended March 31, 2020 2019 2020 2019 (In thousands except for per share data) Income applicable to common shares $ 305 $ 767 $ 858 $ 1,452 Weighted average number of common shares outstanding - basic 5,820 5,821 5,821 5,821 Stock options and restricted stock — — — — Weighted average number of common shares and common share equivalents - diluted 5,820 5,821 5,821 5,821 Basic earnings per share $ 0.05 $ 0.13 $ 0.15 $ 0.25 Diluted earnings per share $ 0.05 $ 0.13 $ 0.15 $ 0.25 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Other comprehensive income | |
Schedule of components of other comprehensive income (loss) and the related income tax effects | The components of other comprehensive income and the related income tax effects are as follows: Three Months Ended March 31, 2020 2019 Tax Net of Tax Net of Before Tax Benefit Tax Before Tax Benefit Tax Amount (Expense) Amount Amount (Expense) Amount (In thousands) Unrealized holding gain arising during period on: Available-for-sale investments $ 105 $ (29 ) $ 76 $ 297 $ (84 ) $ 213 Less reclassification adjustments for: Net gains realized on securities available for sale (a) (b) (68 ) 19 (49 ) (32 ) 9 (23 ) Other comprehensive income, net $ 37 $ (10 ) $ 27 $ 265 $ (75 ) $ 190 Six Months Ended March 31, 2020 2019 Tax Net of Tax Net of Before Tax Benefit Tax Before Tax Benefit Tax Amount (Expense) Amount Amount (Expense) Amount (In thousands) Unrealized holding gain arising during period on: Available-for-sale investments $ 91 $ (25 ) $ 66 $ 639 $ (179 ) $ 460 Less reclassification adjustments for: Net gains realized on securities available for sale (a) (b) (68 ) 19 (49 ) (32 ) 9 (23 ) Other comprehensive income, net $ 23 $ (6 ) $ 17 $ 607 $ (170 ) $ 437 (a) Realized gains on securities transactions included in gains on sales of investment securities in the accompanying Consolidated Statements of Operation (b) Tax effect included in income tax expense in the accompanying Consolidated Statements of Operation |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a recurring basis. Fair Value at March 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Securities available for sale: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 468 $ — $ 468 $ — Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential 9,105 — 9,105 — Total securities available for sale $ 9,573 $ — $ 9,573 $ — Fair Value at September 30, 2019 Total Level 1 Level 2 Level 3 (In thousands) Securities available for sale: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 495 $ — $ 495 $ — Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential 14,708 — 14,708 — Debt securities 1,500 — 1,500 — Total securities available for sale $ 16,703 $ — $ 16,703 $ — |
Schedule of assets measured at fair value on a non-recurring basis | The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a non-recurring basis at March 31, 2020 and September 30, 2019. Fair Value at March 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Impaired loans $ 9,480 $ — $ — $ 9,480 Other real estate owned 6,727 — — 6,727 Total $ 16,207 $ — $ — $ 16,207 Fair Value at September 30, 2019 Total Level 1 Level 2 Level 3 (In thousands) Impaired loans $ 6,835 $ — $ — $ 6,835 Other real estate owned 7,528 — — 7,528 Total $ 14,363 $ — $ — $ 14,363 |
Schedule of quantitative information about assets measured at fair value on a nonrecurring bassis for which Level 3 inputs were used to determine fair value | The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation March 31, 2020 Estimate Techniques Unobservable Input Range (Weighted Average) Impaired loans $ 9,480 Appraisal of (1) Appraisal adjustments (2) -2.5% to -8.0% (-4.0%) Other real estate owned $ 6,727 Appraisal of (1) Liquidation expenses (2) -1.3% to -53.8% (-15.6%) Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation September 30, 2019 Estimate Techniques Unobservable Input Range (Weighted Average) Impaired loans $ 6,835 Appraisal of Appraisal adjustments (2) -1.9% to -67.2% (-25.0%) Other real estate owned $ 7,528 Appraisal of Liquidation expenses (2) -9.2% to -48.5% (-19.4%) (1) Fair value is generally determined through independent appraisals for the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
Schedule of the carrying amount, fair value, and placement in the fair value hierarchy of financial instruments carried at cost or amortized cost | For financial liabilities such as interest-bearing demand, NOW, and money market savings deposits, the carrying amount is a reasonable estimate of fair value due to these products being payable on demand and having no stated maturity. Carrying Fair Fair Value Measurement Placement Value Value (Level 1) (Level 2) (Level 3) (In thousands) March 31, 2020 Financial instruments - assets Investment securities held to maturity $ 30,042 $ 30,139 $ — $ 30,139 $ — Loans 541,921 554,893 — — 554,893 Financial instruments - liabilities Certificates of deposit including retirement certificates 128,243 130,492 — 130,492 — Borrowings 31,079 31,998 — 31,998 — September 30, 2019 Financial instruments - assets Investment securities held to maturity $ 29,481 $ 29,344 $ — $ 29,344 $ — Loans 518,217 527,088 — — 527,088 Financial instruments - liabilities Certificates of deposit including retirement certificates 116,776 117,730 — 117,730 — Borrowings 36,189 36,583 — 36,583 — |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Balance Sheet Information Related to Leases | The following table presents the balance sheet information related to our leases: March 31, 2020 (Dollars in thousands) Operating lease right-of-use asset $ 3,538 Operating lease liabilities $ 3,943 Weighted average remaining lease term in years 8.0 Weighted average discount rate 2.2% |
Schedule of Maturity of Remaining Lease Liabilities | The following table summarizes the maturity of our remaining lease liabilities by year: March 31, 2020 (In thousands) For the Year Ending: 2020 $ 350 2021 705 2022 595 2023 602 2024 602 2025 and thereafter 1,528 Total lease payments 4,382 Less imputed interest (439 ) Present value of lease liabilities $ 3,943 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of the amortized cost and fair values of securities available for sale | The following tables summarize the amortized cost and fair values of securities available for sale at March 31, 2020 and September 30, 2019: March 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available for sale: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 445 $ 23 $ — $ 468 Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential 9,045 95 (35 ) 9,105 Total securities available for sale $ 9,490 $ 118 $ (35 ) $ 9,573 September 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available for sale: Obligations of U.S. government agencies: Mortgage backed securities - residential $ 480 $ 15 $ — $ 495 Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential 14,663 80 (35 ) 14,708 Debt securities 1,500 — — 1,500 Total securities available for sale $ 16,643 $ 95 $ (35 ) $ 16,703 |
Summary of maturities of the debt securities and mortgage-backed securities available for sale | The maturities of the debt securities and certain information regarding the mortgage-backed securities available for sale at March 31, 2020 are summarized in the following table: March 31, 2020 Amortized Fair Cost Value (In thousands) Due within 1 year $ — $ — Due after 1 but within 5 years — — Due after 5 but within 10 years — — Due after 10 years — — Total debt securities — — Mortgage-backed securities: Residential 9,490 9,573 Commercial — — Total $ 9,490 $ 9,573 |
Summary of the amortized cost and fair values of securities held to maturity | The following tables summarize the amortized cost and fair values of securities held to maturity at March 31, 2020 and September 30, 2019: March 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities held to maturity: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 1,917 $ 30 $ (37 ) $ 1,910 Mortgage-backed securities - commercial 810 — (6 ) 804 Obligations of U.S. government-sponsored enterprises: Mortgage-backed-securities - residential 23,078 759 (9 ) 23,828 Debt securities 970 30 — 1,000 Private label mortgage-backed securities - residential 267 — (34 ) 233 Corporate securities 3,000 — (636 ) 2,364 Total securities held to maturity $ 30,042 $ 819 $ (722 ) $ 30,139 September 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities held to maturity: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 445 $ — $ (54 ) $ 391 Mortgage-backed securities - commercial 842 — (6 ) 836 Obligations of U.S. government-sponsored enterprises: Mortgage backed securities - residential 22,363 276 (47 ) 22,592 Debt securities 2,468 10 — 2,478 Private label mortgage-backed securities - residential 363 7 — 370 Corporate securities 3,000 — (323 ) 2,677 Total securities held to maturity $ 29,481 $ 293 $ (430 ) $ 29,344 |
Summary of maturities of the debt securities and mortgage-backed securities securities held to maturity | The maturities of the debt securities and certain information regarding the mortgage backed securities held to maturity at March 31, 2020 are summarized in the following table: March 31, 2020 Amortized Fair Cost Value (In thousands) Due within 1 year $ — $ — Due after 1 but within 5 years — — Due after 5 but within 10 years 3,970 3,364 Due after 10 years — — Total debt securities 3,970 3,364 Mortgage-backed securities: Residential 25,262 25,971 Commercial 810 804 Total $ 30,042 $ 30,139 |
IMPAIRMENT OF INVESTMENT SECU_2
IMPAIRMENT OF INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Schedule of Investments [Abstract] | |
Schedule of gross unrealized losses and fair value for both available for sale and held to maturity securities by investment category and time frame for which the loss has been outstanding | The following tables present the gross unrealized losses and fair value at March 31, 2020 and September 30, 2019 for both available for sale and held to maturity securities by investment category and time frame for which the loss has been outstanding: March 31, 2020 Less Than 12 Months 12 Months Or Greater Total Number of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses (Dollars in thousands) Obligations of U.S. government agencies: Mortgage-backed securities - residential 2 $ — $ — $ 380 $ (37 ) $ 380 $ (37 ) Mortgage-backed securities - commercial 1 — — 804 (6 ) 804 (6 ) Obligations of U.S. government-sponsored enterprises Mortgage-backed securities - residential 5 1,228 — 3,952 (44 ) 5,180 (44 ) Private label mortgage-backed securities residential 1 233 (34 ) — — 233 (34 ) Corporate securities 1 — — 2,364 (636 ) 2,364 (636 ) Total 10 $ 1,461 $ (34 ) $ 7,500 $ (723 ) $ 8,961 $ (757 ) September 30, 2019 Less Than 12 Months 12 Months Or Greater Total Number of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses (Dollars in thousands) Obligations of U.S. government agencies: Mortgage-backed securities - residential 2 $ — $ — $ 392 $ (54 ) $ 392 $ (54 ) Mortgage-backed securities - commercial 1 — — 836 (6 ) 836 (6 ) Obligations of U.S. government-sponsored enterprises Mortgage-backed securities - residential 13 1,219 (4 ) 14,429 (78 ) 15,648 (82 ) Corporate securities 1 — — 2,678 (323 ) 2,678 (323 ) Total 17 $ 1,219 $ (4 ) $ 18,335 $ (461 ) $ 19,554 $ (465 ) |
LOANS RECEIVABLE, NET AND REL_2
LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of loans receivable, net | Loans receivable, net were comprised of the following: March 31, September 30, 2020 2019 (In thousands) One-to-four family residential $ 204,575 $ 190,415 Commercial real estate 245,860 232,544 Construction 22,333 28,451 Home equity lines of credit 22,170 17,832 Commercial business 47,684 48,769 Other 4,782 4,990 Total loans receivable 547,404 523,001 Net deferred loan costs 42 104 Allowance for loan losses (5,525 ) (4,888 ) Total loans receivable, net $ 541,921 $ 518,217 |
Schedule of impaired loans | The following tables present impaired loans by class, segregated by those for which a specific allowance was required and charged-off and those for which a specific allowance was not necessary at the dates presented: Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal March 31, 2020 Investment Allowance Investment Investment Balance (In thousands) One-to-four family residential $ — $ — $ 2,177 $ 2,177 $ 2,177 Commercial real estate 599 46 2,768 3,367 3,367 Construction 2,306 175 2,900 5,206 5,206 Commercial business — — 1,404 1,404 1,404 Total impaired loans $ 2,905 $ 221 $ 9,249 $ 12,154 $ 12,154 Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal September 30, 2019 Investment Allowance Investment Investment Balance (In thousands) One-to-four family residential $ — $ — $ 1,405 $ 1,405 $ 1,405 Commercial real estate — — 4,593 4,593 4,593 Construction — — 2,900 2,900 2,900 Commercial business — — 1,456 1,456 1,456 Total impaired loans $ — $ — $ 10,354 $ 10,354 $ 10,354 |
Schedule of average recorded investment in impaired loans | The following tables present the average recorded investment in impaired loans for the periods indicated. There was no interest income recognized on impaired loans during the periods presented. Three Months Six Months Ended March 31, 2020 Ended March 31, 2020 (In thousands) One-to-four family residential $ 1,787 $ 1,659 Commercial real estate 2,995 3,528 Construction 4,053 3,669 Commercial business 1,441 1,446 Average investment in impaired loans $ 10,276 $ 10,302 Three Months Six Months Ended March 31, 2019 Ended March 31, 2019 (In thousands) One-to-four family residential $ 1,240 $ 1,204 Commercial real estate 3,923 3,936 Construction 2,900 1,933 Home equity lines of credit 49 52 Commercial business 646 667 Average investment in impaired loans $ 8,758 $ 7,792 |
Schedule of loan portfolio summarized by Bank's internal risk rating system | The following tables present the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the Bank’s internal risk rating system at the dates presented: Special Pass Mention Substandard Doubtful Total (In thousands) March 31, 2020 One-to-four family residential $ 203,308 $ — $ 1,267 $ — $ 204,575 Commercial real estate 243,683 406 1,771 — 245,860 Construction 17,035 — 5,298 — 22,333 Home equity lines of credit 22,170 — — — 22,170 Commercial business 46,435 13 1,236 — 47,684 Other 4,782 — — — 4,782 Total $ 537,413 $ 419 $ 9,572 $ — $ 547,404 Special Pass Mention Substandard Doubtful Total (In thousands) September 30, 2019 One-to-four family residential $ 189,938 $ — $ 477 $ — $ 190,415 Commercial real estate 228,156 1,409 2,979 — 232,544 Construction 25,551 — 2,900 — 28,451 Home equity lines of credit 17,832 — — — 17,832 Commercial business 47,541 — 1,228 — 48,769 Other 4,990 — — — 4,990 Total $ 514,008 $ 1,409 $ 7,584 $ — $ 523,001 |
Schedule of aging analysis of past due loans, segregated by class of loans | The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans at the dates presented: 30-59 60-89 Days Days 90 Days + Total Non- Total Current Past Due Past Due Past Due Past Due Accrual Loans (Dollars in thousands) March 31, 2020 One-to-four family residential $ 200,712 $ 2,957 $ — $ 906 $ 3,863 $ 906 $ 204,575 Commercial real estate 240,540 3,549 — 1,771 5,320 1,771 245,860 Construction 17,127 — — 5,206 5,206 5,206 22,333 Home equity lines of credit 22,072 6 92 — 98 — 22,170 Commercial business 45,028 1,420 — 1,236 2,656 1,236 47,684 Other 4,782 — — — — — 4,782 Total $ 530,261 $ 7,932 $ 92 $ 9,119 $ 17,143 $ 9,119 $ 547,404 30-59 60-89 Days Days 90 Days + Total Non- Total Current Past Due Past Due Past Due Past Due Accrual Loans (In thousands) September 30, 2019 One-to-four family residential $ 190,301 $ — $ — $ 114 $ 114 $ 114 $ 190,415 Commercial real estate 229,331 503 58 2,652 3,213 2,652 232,544 Construction 25,551 — — 2,900 2,900 2,900 28,451 Home equity lines of credit 17,832 — — — — — 17,832 Commercial business 47,541 — — 1,228 1,228 1,228 48,769 Other 4,990 — — — — — 4,990 Total $ 515,546 $ 503 $ 58 $ 6,894 $ 7,455 $ 6,894 $ 523,001 |
Schedule of activity in the allowance for loan losses by portfolio segment | The following table summarizes the ALL by loan category and the related activity for the six months ended March 31, 2020: One-to-Four Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (Dollars in thousands) Balance- September 30, 2019 $ 731 $ 2,066 $ 511 $ 138 $ 1,184 $ 8 $ 250 $ 4,888 Charge-offs Recoveries 2 2 Provision (credit) (26 ) (147 ) 63 2 311 (6 ) 13 210 Balance- December 31, 2019 $ 707 $ 1,919 $ 574 $ 140 $ 1,495 $ 2 $ 263 $ 5,100 Charge-offs Recoveries 5 5 Provision (credit) 227 457 70 42 (287 ) (2 ) (87 ) 420 Balance- March 31, 2020 $ 939 $ 2,376 $ 644 $ 182 $ 1,208 $ $ 176 $ 5,525 The following table summarizes the ALL by loan category and the related activity for the six months ended March 31, 2019: One-to-Four Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (In thousands) Balance- September 30, 2018 $ 687 $ 1,540 $ 493 $ 109 $ 1,151 $ 25 $ 195 $ 4,200 Charge-offs Recoveries 1 1 Provision (credit) 11 50 181 11 31 (21 ) (62 ) 201 Balance- December 31, 2018 $ 698 $ 1,590 $ 674 $ 121 $ 1,182 $ 4 $ 133 $ 4,402 Charge-offs Recoveries 92 92 Provision (credit) (80 ) 95 142 17 (78 ) (1 ) 11 106 Balance- March 31, 2019 $ 710 $ 1,685 $ 816 $ 138 $ 1,104 $ 3 $ 144 $ 4,600 The following tables summarize the ALL by loan category, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of March 31, 2020 and September 30, 2019: One-to-Four Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (Dollars in thousands) Allowance for Loan Losses: Balance - March 31, 2020 $ 939 $ 2,376 $ 644 $ 182 $ 1,208 $ $ 176 $ 5,525 Individually evaluated for impairment 46 175 221 Collectively evaluated for impairment 939 2,330 469 182 1,208 176 5,304 Loans receivable: Balance - March 31, 2020 $ 204,575 $ 245,860 $ 22,333 $ 22,170 $ 47,684 $ 4,782 $ $ 547,404 Individually evaluated for impairment 2,177 3,367 5,206 1,404 12,154 Collectively evaluated for impairment 202,398 242,493 17,127 22,170 46,280 4,782 535,250 One-to-Four Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (In thousands) Allowance for Loan Losses: Balance - September 30, 2019 $ 731 $ 2,066 $ 511 $ 138 $ 1,184 $ 8 $ 250 $ 4,888 Individually evaluated for impairment Collectively evaluated for impairment 731 2,066 511 138 1,184 8 250 4,888 Loans receivable: Balance - September 30, 2019 $ 190,415 $ 232,544 $ 28,451 $ 17,832 $ 48,769 $ 4,990 $ $ 523,001 Individually evaluated for impairment 1,405 4,593 2,900 1,456 10,354 Collectively evaluated for impairment 189,010 227,951 25,551 17,832 47,313 4,990 512,647 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Deposits [Abstract] | |
Schedule of deposits by type of account | A summary of deposits by type of account are summarized as follows: March 31, September 30, 2020 2019 (In thousands) Demand accounts $ 132,177 $ 106,422 Savings accounts 70,859 70,598 NOW accounts 42,567 48,164 Money market accounts 187,092 188,115 Certificates of deposit 112,374 100,016 Retirement certificates 15,869 16,760 Total deposits $ 560,938 $ 530,075 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of reconciliation of income tax between the amounts calculated based upon pre-tax income at the Company's federal statutory rate and the amounts reflected in the consolidated statements of operations | A reconciliation of income tax between the amounts calculated based upon pre-tax income at the Company’s federal statutory rate and the amounts reflected in the consolidated statements of operations are as follows: For the Three Months For the Six Months Ended March 31, Ended March 31, 2020 2019 2020 2019 (In thousands) Income tax expense at the statutory federal tax rate of 21% for the three and six months ended March 31, 2020 and 2019 $ 77 $ 203 $ 221 $ 382 State tax expense 57 125 163 236 Other (13 ) (4 ) (25 ) (14 ) Income tax expense $ 121 $ 324 $ 359 $ 604 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract] | |
Schedule of fair value, off-balance sheet financial instruments | These financial instruments are commitments to extend credit are summarized in the below table. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. March 31, September 30, 2020 2019 (In thousands) Financial instruments whose contract amounts represent credit risk Letters of credit $ 967 $ 1,315 Unused lines of credit 51,855 56,405 Fixed rate loan commitments 1,993 3,362 Variable rate loan commitments 16,781 12,141 Total $ 71,596 $ 73,223 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Basic EPS | ||||
Income applicable to common shares | $ 305 | $ 767 | $ 858 | $ 1,452 |
Weighted average number of common shares outstanding - basic | 5,820 | 5,821 | 5,821 | 5,821 |
Stock options and restricted stock | ||||
Weighted average number of common shares and common share equivalents - diluted | 5,820 | 5,821 | 5,821 | 5,821 |
Basic earnings per share | $ 0.05 | $ 0.13 | $ 0.15 | $ 0.25 |
Diluted earnings per share | $ 0.05 | $ 0.13 | $ 0.15 | $ 0.25 |
STOCK-BASED COMPENSATION AND _2
STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 149 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Expiration period | 10 years | ||||
Treasury stock, shares | 112,996 | 112,996 | 112,996 | 102,996 | |
Cost of shares repurchased by ESOP trust | $ 2,300,000 | ||||
Average cost of shares repurchased (per share) | $ 10.58 | ||||
Description of loan with respect to employee stock ownership plan | In 2006 the ESOP trust purchased 217,863 shares of common stock in the open market using proceeds of a loan from the Company. The total cost of shares purchased by the ESOP trust was $2.3 million, reflecting an average cost per share of $10.58. The Bank makes cash contributions to the ESOP on an annual basis sufficient to enable the ESOP to make the required loan payments to the Company. The loan bears a variable interest rate that adjusts annually every January 1st to the then published Prime Rate (4.75% at January 1, 2020) with principal and interest payable annually in equal installments over thirty years. The loan is secured by shares of the Company’s stock. | ||||
Interest rate of loan with respect to employee stock ownership plan | 4.75% | 4.75% | 4.75% | ||
Shares allocated | 190,661 | 190,661 | 190,661 | ||
Suspense shares | 27,202 | 27,202 | 27,202 | ||
Fair value of unallocated shares | $ 244,818 | $ 244,818 | $ 244,818 | ||
ESOP compensation expense | $ 73,000 | $ 75,000 | |||
Total ESOP shares | 217,863 | 217,863 | 217,863 | ||
Second Repurchase Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum stock repurchase authorization (as a percent) | 5.00% | ||||
Stock authorized to be repurchased (in shares) | 129,924 | 129,924 | 129,924 | ||
Stock repurchased during period (in shares) | 10,000 | 91,000 | |||
Remaining shares available to be repurchased | 38,924 | 38,924 | 38,924 | ||
Common stock average cost (in dollars per share) | $ 9.03 | $ 8.41 |
OTHER COMPREHENSIVE INCOME (Sch
OTHER COMPREHENSIVE INCOME (Schedule of Components of Other Comprehensive Income and Related Income Tax Effects) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Other comprehensive income | |||||||
Available-for-sale investments before tax | $ 105 | $ 297 | $ 91 | $ 639 | |||
Tax benefit (expense) | (29) | (84) | (25) | (179) | |||
Available-for-sale investments after tax | 76 | 213 | 66 | 460 | |||
Reclassification adjustment for net gains realized on available-for-sale investments before tax | [1],[2] | (68) | (32) | (68) | (32) | ||
Tax benefit (expense) | [1],[2] | 19 | 9 | 19 | 9 | ||
Reclassification adjustment for net gains realized on available-for-sale investments after tax | [1],[2] | (49) | (23) | (49) | (23) | ||
Other comprehensive income, net before tax | 37 | 265 | 23 | 607 | |||
Tax benefit (expense), Total | (10) | (75) | (6) | (170) | |||
Other comprehensive income, net after tax | $ 27 | $ (10) | $ 190 | $ 246 | $ 17 | $ 437 | |
[1] | Realized gains on securities transactions included in gains on sales of investment securities in the accompanying Consolidated Statements of Operation | ||||||
[2] | T ax effect included in income tax expense in the accompanying Consolidated Statements of Operation |
FAIR VALUE DISCLOSURES (Narrati
FAIR VALUE DISCLOSURES (Narrative) (Details) - USD ($) | Mar. 31, 2020 | Sep. 30, 2019 |
Fair Value Disclosures [Abstract] | ||
Mortgage Servicing Rights | $ 20,000 | $ 26,000 |
FAIR VALUE DISCLOSURES (Schedul
FAIR VALUE DISCLOSURES (Schedule of Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Fair value measured on recurring basis: | ||
Securities available for sale | $ 9,573 | $ 16,703 |
Obligations of U.S. government enterprises Mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 468 | 495 |
Obligations of U.S. government-sponsored enterprises Mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 9,105 | 14,708 |
Obligations of U.S. government-sponsored enterprises Debt securities [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 1,500 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 9,573 | 16,703 |
Fair Value, Measurements, Recurring [Member] | Obligations of U.S. government enterprises Mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 468 | 495 |
Fair Value, Measurements, Recurring [Member] | Obligations of U.S. government-sponsored enterprises Mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 9,105 | 14,708 |
Fair Value, Measurements, Recurring [Member] | Obligations of U.S. government-sponsored enterprises Debt securities [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 1,500 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Obligations of U.S. government enterprises Mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Obligations of U.S. government-sponsored enterprises Mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Obligations of U.S. government-sponsored enterprises Debt securities [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 9,573 | 16,703 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. government enterprises Mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 468 | 495 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. government-sponsored enterprises Mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 9,105 | 14,708 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. government-sponsored enterprises Debt securities [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 1,500 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Obligations of U.S. government enterprises Mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Obligations of U.S. government-sponsored enterprises Mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Obligations of U.S. government-sponsored enterprises Debt securities [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale |
FAIR VALUE DISCLOSURES (Sched_2
FAIR VALUE DISCLOSURES (Schedule of Assets Measured at Fair Value on a Non-Recurring Basis) (Details) - Fair Value Measured on a Nonrecurring Basis [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 9,480 | $ 6,835 |
Other real estate owned | 6,727 | 7,528 |
Assets measured at fair value on a non-recurring basis | 16,207 | 14,363 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Other real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Other real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 9,480 | 6,835 |
Other real estate owned | 6,727 | 7,528 |
Assets measured at fair value on a non-recurring basis | $ 16,207 | $ 14,363 |
FAIR VALUE DISCLOSURES (Sched_3
FAIR VALUE DISCLOSURES (Schedule of Additional Quantitative Information About Assets Measured at Fair Value) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2019 | ||
Fair Value Measured on a Nonrecurring Basis [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value estimate | $ 16,207 | $ 14,363 | |
Impaired Loans [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Valuation techniques and Unobservable Input | [1],[2] | Appraisal of collateral; Appraisal adjustments | Appraisal of collateral; Appraisal adjustments |
Impaired Loans [Member] | Fair Value Measured on a Nonrecurring Basis [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value estimate | $ 9,480 | $ 6,835 | |
Impaired Loans [Member] | Fair Value Measured on a Nonrecurring Basis [Member] | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value input- appraisal of collateral | (2.50%) | (1.90%) | |
Impaired Loans [Member] | Fair Value Measured on a Nonrecurring Basis [Member] | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value input- appraisal of collateral | (8.00%) | (67.20%) | |
Impaired Loans [Member] | Fair Value Measured on a Nonrecurring Basis [Member] | Weighted Average [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value input- appraisal of collateral | (4.00%) | (25.00%) | |
Other Real Estate Owned [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Valuation techniques and Unobservable Input | [1],[2] | Appraisal of collateral; Liquidation expenses | Appraisal of collateral; Liquidation expenses |
Other Real Estate Owned [Member] | Fair Value Measured on a Nonrecurring Basis [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value estimate | $ 6,727 | $ 7,528 | |
Other Real Estate Owned [Member] | Fair Value Measured on a Nonrecurring Basis [Member] | Minimum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value input- appraisal of collateral | (1.30%) | (9.20%) | |
Other Real Estate Owned [Member] | Fair Value Measured on a Nonrecurring Basis [Member] | Maximum [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value input- appraisal of collateral | (53.80%) | (48.50%) | |
Other Real Estate Owned [Member] | Fair Value Measured on a Nonrecurring Basis [Member] | Weighted Average [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value input- appraisal of collateral | (15.60%) | (19.40%) | |
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. | ||
[2] | Fair value is generally determined through independent appraisals for the underlying collateral, which generally include various level 3 inputs which are not identifiable. |
FAIR VALUE DISCLOSURES (Sched_4
FAIR VALUE DISCLOSURES (Schedule of the Carrying Amount, Fair Value, and Placement in the Fair Value Hierarchy of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Financial instruments - assets | ||
Investment securities held to maturity | $ 30,042 | $ 29,481 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial instruments - assets | ||
Investment securities held to maturity | ||
Loans | ||
Financial instruments - liabilities | ||
Certificates of deposit including retirement certificates | ||
Borrowings | ||
Fair Value, Inputs, Level 2 [Member] | ||
Financial instruments - assets | ||
Investment securities held to maturity | 30,139 | 29,344 |
Loans | ||
Financial instruments - liabilities | ||
Certificates of deposit including retirement certificates | 130,492 | 117,730 |
Borrowings | 31,998 | 36,583 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial instruments - assets | ||
Investment securities held to maturity | ||
Loans | 554,893 | 527,088 |
Financial instruments - liabilities | ||
Certificates of deposit including retirement certificates | ||
Borrowings | ||
Carrying Value [Member] | ||
Financial instruments - assets | ||
Investment securities held to maturity | 30,042 | 29,481 |
Loans | 541,921 | 518,217 |
Financial instruments - liabilities | ||
Certificates of deposit including retirement certificates | 128,243 | 116,776 |
Borrowings | 31,079 | 36,189 |
Fair Value [Member] | ||
Financial instruments - assets | ||
Investment securities held to maturity | 30,139 | 29,344 |
Loans | 554,893 | 527,088 |
Financial instruments - liabilities | ||
Certificates of deposit including retirement certificates | 130,492 | 117,730 |
Borrowings | $ 31,998 | $ 36,583 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Oct. 02, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Term of short term leases | 12 months | ||
Remaining lease terms | 8 years | ||
Operating lease liabilities | $ 3,500,000 | ||
Operating lease right-of-use asset and liability | 3,900,000 | $ 3,800,000 | |
Total lease expense | $ 403,000 | $ 392,000 | |
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 10 years | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 11 years |
LEASES (Schedule of Balance She
LEASES (Schedule of Balance Sheet Information Related to Leases) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
Operating lease right-of-use asset | $ 3,538 |
Operating lease liabilities | $ 3,943 |
Weighted average remaining lease term in years | 8 years |
Weighted average discount rate | 2.20% |
LEASES (Schedule of Maturity of
LEASES (Schedule of Maturity of Remaining Lease Liabilities) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
For the Year Ending: | |
2020 | $ 350 |
2021 | 705 |
2022 | 595 |
2023 | 602 |
2024 | 602 |
2025 and thereafter | 1,528 |
Total lease payments | 4,382 |
Less imputed interest | (439) |
Present value of lease liabilities | $ 3,943 |
INVESTMENT SECURITIES (Summary
INVESTMENT SECURITIES (Summary of Amortized Cost and Fair Values of Securities Available For Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 9,490 | $ 16,643 |
Gross Unrealized Gains | 118 | 95 |
Gross Unrealized Losses | (35) | (35) |
Fair Value | 9,573 | 16,703 |
Obligations of U.S. government enterprises Mortgage-backed securities-residential [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 445 | 480 |
Gross Unrealized Gains | 23 | 15 |
Gross Unrealized Losses | ||
Fair Value | 468 | 495 |
Obligations of U.S. government-sponsored enterprises Mortgage-backed securities-residential [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,045 | 14,663 |
Gross Unrealized Gains | 95 | 80 |
Gross Unrealized Losses | (35) | (35) |
Fair Value | $ 9,105 | 14,708 |
Obligations of U.S. government-sponsored enterprises Debt securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,500 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 1,500 |
INVESTMENT SECURITIES (Summar_2
INVESTMENT SECURITIES (Summary of Maturities of Debt Securities and Mortgage-backed Securities Available For Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Available for Sale Securities, Amortized Cost | ||
Due within 1 year | ||
Due after 1 but within 5 years | ||
Due after 5 but within 10 years | ||
Due after 10 years | ||
Total debt securities | ||
Mortgage Backed Securities, Residential | 9,490 | |
Mortgage Backed Securities, Commercial | ||
Amortized Cost | 9,490 | $ 16,643 |
Available for Sale Securities, Fair Value | ||
Due within 1 year | ||
Due after 1 but within 5 years | ||
Due after 5 but within 10 years | ||
Due after 10 years | ||
Total debt securities | ||
Mortgage Backed Securities, Residential | 9,573 | |
Mortgage Backed Securities, Commercial | ||
Fair Value | $ 9,573 | $ 16,703 |
INVESTMENT SECURITIES (Summar_3
INVESTMENT SECURITIES (Summary of Maturities of Debt Securities and Mortgage-backed Securities Held to Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | $ 30,042 | $ 29,481 |
Gross Unrealized Gains | 819 | 293 |
Gross Unrealized Losses | (722) | (430) |
Fair Value | 30,139 | 29,344 |
Obligations of U.S. government agencies Mortgage backed securities - residential [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 1,917 | 445 |
Gross Unrealized Gains | 30 | |
Gross Unrealized Losses | (37) | (54) |
Fair Value | 1,910 | 391 |
Obligations of U.S. government agencies Mortgage backed securities -commercial [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 810 | 842 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (6) | (6) |
Fair Value | 804 | 836 |
Obligations of U.S. government-sponsored enterprises Mortgage-backed securities-residential [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 23,078 | 22,363 |
Gross Unrealized Gains | 759 | 276 |
Gross Unrealized Losses | (9) | (47) |
Fair Value | 23,828 | 22,592 |
Obligations of U.S. government-sponsored enterprises Debt securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 970 | 2,468 |
Gross Unrealized Gains | 30 | 10 |
Gross Unrealized Losses | ||
Fair Value | 1,000 | 2,478 |
Private label mortgage-backed securities-residential [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 267 | 363 |
Gross Unrealized Gains | 7 | |
Gross Unrealized Losses | (34) | |
Fair Value | 233 | 370 |
Corporate securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 3,000 | 3,000 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (636) | (323) |
Fair Value | $ 2,364 | $ 2,677 |
INVESTMENT SECURITIES (Summar_4
INVESTMENT SECURITIES (Summary of Amortized Cost and Fair Values of Securities Held to Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Held to Maturity Securities, Amortized Cost | ||
Due within 1 year | ||
Due after 1 but within 5 years | ||
Due after 5 but within 10 years | 3,970 | |
Due after 10 years | ||
Total debt securities | 3,970 | |
Mortgage Backed Securities, Residential | 25,262 | |
Mortgage Backed Securities, Commercial | 810 | |
Amortized cost | 30,042 | $ 29,481 |
Held to Maturity Securities, Fair Value | ||
Due within 1 year | ||
Due after 1 but within 5 years | ||
Due after 5 but within 10 years | 3,364 | |
Due after 10 years | ||
Total debt securities | 3,364 | |
Mortgage Backed Securities, Residential | 25,971 | |
Mortgage Backed Securities, Commercial | 804 | |
Fair value | $ 30,139 | $ 29,344 |
IMPAIRMENT OF INVESTMENT SECU_3
IMPAIRMENT OF INVESTMENT SECURITIES (Schedule of Gross Unrealized Losses and Fair Value for Both Available For Sale and Held To Maturity Securities) (Details) $ in Thousands | Mar. 31, 2020USD ($)N | Sep. 30, 2019USD ($)N |
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of Securities | N | 10 | 17 |
Less Than 12 Months, Fair Value | $ 1,461 | $ 1,219 |
Less Than 12 Months, Unrealized Losses | (34) | (4) |
12 Months Or Greater, Fair Value | 7,500 | 18,335 |
12 Months Or Greater, Unrealized Losses | (723) | (461) |
Total, Fair Value | 8,961 | 19,554 |
Total, Unrealized Losses | $ (757) | $ (465) |
Obligations of U.S. government agencies Mortgage backed securities - residential [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of Securities | N | 2 | 2 |
Less Than 12 Months, Fair Value | ||
Less Than 12 Months, Unrealized Losses | ||
12 Months Or Greater, Fair Value | 380 | 392 |
12 Months Or Greater, Unrealized Losses | (37) | (54) |
Total, Fair Value | 380 | 392 |
Total, Unrealized Losses | $ (37) | $ (54) |
Obligations of U.S. government agencies Mortgage backed securities -commercial [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of Securities | N | 1 | 1 |
Less Than 12 Months, Fair Value | ||
Less Than 12 Months, Unrealized Losses | ||
12 Months Or Greater, Fair Value | 804 | 836 |
12 Months Or Greater, Unrealized Losses | (6) | (6) |
Total, Fair Value | 804 | 836 |
Total, Unrealized Losses | $ (6) | $ (6) |
Obligations of U.S. government-sponsored enterprises Mortgage-backed securities-residential [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of Securities | N | 5 | 13 |
Less Than 12 Months, Fair Value | $ 1,228 | $ 1,219 |
Less Than 12 Months, Unrealized Losses | (4) | |
12 Months Or Greater, Fair Value | 3,952 | 14,429 |
12 Months Or Greater, Unrealized Losses | (44) | (78) |
Total, Fair Value | 5,180 | 15,648 |
Total, Unrealized Losses | $ (44) | $ (82) |
Obligations of U.S. government-sponsored enterprises Debt securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of Securities | N | 1 | |
Less Than 12 Months, Fair Value | $ 233 | |
Less Than 12 Months, Unrealized Losses | (34) | |
12 Months Or Greater, Fair Value | ||
12 Months Or Greater, Unrealized Losses | ||
Total, Fair Value | 233 | |
Total, Unrealized Losses | $ (34) | |
Corporate securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of Securities | N | 1 | 1 |
Less Than 12 Months, Fair Value | ||
Less Than 12 Months, Unrealized Losses | ||
12 Months Or Greater, Fair Value | 2,364 | 2,678 |
12 Months Or Greater, Unrealized Losses | (636) | (323) |
Total, Fair Value | 2,364 | 2,678 |
Total, Unrealized Losses | $ (636) | $ (323) |
LOANS RECEIVABLE, NET AND REL_3
LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Receivables [Abstract] | ||||
Average Recorded Investment | $ 10,276 | $ 8,758 | $ 10,302 | $ 7,792 |
Interest income | $ 75 | 109 | ||
Troubled Debt Restructurings Loans | $ 365 | $ 365 |
LOANS RECEIVABLE, NET AND REL_4
LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Loans Receivable, Net) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | $ 547,404 | $ 523,001 |
Net deferred loan costs | 42 | 104 |
Allowance for loan losses | (5,525) | (4,888) |
Total loans receivable, net | 541,921 | 518,217 |
One-to four-family residential [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 204,575 | 190,415 |
Allowance for loan losses | (939) | (731) |
Commercial real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 245,860 | 232,544 |
Allowance for loan losses | (2,376) | (2,066) |
Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 22,333 | 28,451 |
Allowance for loan losses | (644) | (511) |
Home equity lines of credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 22,170 | 17,832 |
Allowance for loan losses | (182) | (138) |
Commercial business [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 47,684 | 48,769 |
Allowance for loan losses | (1,208) | (1,184) |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 4,782 | 4,990 |
Allowance for loan losses | $ (8) |
LOANS RECEIVABLE, NET AND REL_5
LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Impaired Loans by Class) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment Impaired Loans with Specific Allowance | $ 2,905 | |
Related Allowance Impaired Loans with Specific Allowance | 221 | |
Recorded Investment Impaired Loans with No Specific Allowance | 9,249 | 10,354 |
Total Impaired Loans Recorded Investment | 12,154 | 10,354 |
Total Impaired Loans Unpaid Principal Balance | 12,154 | 10,354 |
One-to four-family residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment Impaired Loans with Specific Allowance | ||
Related Allowance Impaired Loans with Specific Allowance | ||
Recorded Investment Impaired Loans with No Specific Allowance | 2,177 | 1,405 |
Total Impaired Loans Recorded Investment | 2,177 | 1,405 |
Total Impaired Loans Unpaid Principal Balance | 2,177 | 1,405 |
Commercial real estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment Impaired Loans with Specific Allowance | 599 | |
Related Allowance Impaired Loans with Specific Allowance | 46 | |
Recorded Investment Impaired Loans with No Specific Allowance | 2,768 | 4,593 |
Total Impaired Loans Recorded Investment | 3,367 | 4,593 |
Total Impaired Loans Unpaid Principal Balance | 3,367 | 4,593 |
Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment Impaired Loans with Specific Allowance | 2,306 | |
Related Allowance Impaired Loans with Specific Allowance | 175 | |
Recorded Investment Impaired Loans with No Specific Allowance | 2,900 | 2,900 |
Total Impaired Loans Recorded Investment | 5,206 | 2,900 |
Total Impaired Loans Unpaid Principal Balance | 5,206 | 2,900 |
Commercial business [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment Impaired Loans with Specific Allowance | ||
Related Allowance Impaired Loans with Specific Allowance | ||
Recorded Investment Impaired Loans with No Specific Allowance | 1,404 | 1,456 |
Total Impaired Loans Recorded Investment | 1,404 | 1,456 |
Total Impaired Loans Unpaid Principal Balance | $ 1,404 | $ 1,456 |
LOANS RECEIVABLE, NET AND REL_6
LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Average Recorded Investment in Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | ||||
Average investment in impaired loans | $ 10,276 | $ 8,758 | $ 10,302 | $ 7,792 |
One-to four-family residential [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average investment in impaired loans | 1,787 | 1,240 | 1,659 | 1,204 |
Commercial real estate [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average investment in impaired loans | 2,995 | 3,923 | 3,528 | 3,936 |
Construction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average investment in impaired loans | 4,053 | 2,900 | 3,669 | 1,933 |
Commercial business [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average investment in impaired loans | $ 1,441 | 646 | $ 1,446 | 667 |
Home equity lines of credit [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average investment in impaired loans | $ 49 | $ 52 |
LOANS RECEIVABLE, NET AND REL_7
LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Classes of the Loan Portfolio Summarized by Bank's Internal Risk Rating System) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | $ 547,404 | $ 523,001 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 537,413 | 514,008 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 419 | 1,409 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 9,572 | 7,584 |
Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | ||
One-to four-family residential [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 204,575 | 190,415 |
One-to four-family residential [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 203,308 | 189,938 |
One-to four-family residential [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | ||
One-to four-family residential [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 1,267 | 477 |
One-to four-family residential [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Commercial real estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 245,860 | 232,544 |
Commercial real estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 243,683 | 228,156 |
Commercial real estate [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 406 | 1,409 |
Commercial real estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 1,771 | 2,979 |
Commercial real estate [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 22,333 | 28,451 |
Construction [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 17,035 | 25,551 |
Construction [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Construction [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 5,298 | 2,900 |
Construction [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Home equity lines of credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 22,170 | 17,832 |
Home equity lines of credit [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 22,170 | 17,832 |
Home equity lines of credit [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Home equity lines of credit [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Home equity lines of credit [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Commercial business [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 47,684 | 48,769 |
Commercial business [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 46,435 | 47,541 |
Commercial business [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 13 | |
Commercial business [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 1,236 | 1,228 |
Commercial business [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 4,782 | 4,990 |
Other [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | 4,782 | 4,990 |
Other [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Other [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Other [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Gross |
LOANS RECEIVABLE, NET AND REL_8
LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Classes of the Loan Portfolio Summarized by Aging Categories) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | $ 530,261 | $ 515,546 |
Total Past Due | 17,143 | 7,455 |
Non - Accrual | 9,119 | 6,894 |
Total loans receivable | 547,404 | 523,001 |
One-to four-family residential [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 200,712 | 190,301 |
Total Past Due | 3,863 | 114 |
Non - Accrual | 906 | 114 |
Total loans receivable | 204,575 | 190,415 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 240,540 | 229,331 |
Total Past Due | 5,320 | 3,213 |
Non - Accrual | 1,771 | 2,652 |
Total loans receivable | 245,860 | 232,544 |
Construction [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 17,127 | 25,551 |
Total Past Due | 5,206 | 2,900 |
Non - Accrual | 5,206 | 2,900 |
Total loans receivable | 22,333 | 28,451 |
Home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 22,072 | 17,832 |
Total Past Due | 98 | |
Non - Accrual | ||
Total loans receivable | 22,170 | 17,832 |
Commercial business [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 45,028 | 47,541 |
Total Past Due | 2,656 | 1,228 |
Non - Accrual | 1,236 | 1,228 |
Total loans receivable | 47,684 | 48,769 |
Other [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 4,782 | 4,990 |
Total Past Due | ||
Non - Accrual | ||
Total loans receivable | 4,782 | 4,990 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 7,932 | 503 |
30-59 Days Past Due [Member] | One-to four-family residential [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 2,957 | |
30-59 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 3,549 | 503 |
30-59 Days Past Due [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
30-59 Days Past Due [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 6 | |
30-59 Days Past Due [Member] | Commercial business [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,420 | |
30-59 Days Past Due [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 92 | 58 |
60-89 Days Past Due [Member] | One-to four-family residential [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 58 | |
60-89 Days Past Due [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 92 | |
60-89 Days Past Due [Member] | Commercial business [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 9,119 | 6,894 |
90 Days Past Due [Member] | One-to four-family residential [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 906 | 114 |
90 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,771 | 2,652 |
90 Days Past Due [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 5,206 | 2,900 |
90 Days Past Due [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
90 Days Past Due [Member] | Commercial business [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 1,236 | 1,228 |
90 Days Past Due [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due |
LOANS RECEIVABLE, NET AND REL_9
LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Activity in the Allowance for Loan Losses by Loan Category) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | |
Activity in the allowance for loan losses by loan category: | ||||||
Balance at beginning of period | $ 5,100 | $ 4,888 | $ 4,402 | $ 4,200 | $ 4,888 | $ 4,200 |
Charge-offs | ||||||
Recoveries | 5 | 2 | 92 | 1 | ||
Provision (credit) | 420 | 210 | 106 | 201 | 631 | 307 |
Balance at the end of period | 5,525 | 5,100 | 4,600 | 4,402 | 5,525 | 4,600 |
One-to four-family residential [Member] | ||||||
Activity in the allowance for loan losses by loan category: | ||||||
Balance at beginning of period | 707 | 731 | 698 | 687 | 731 | 687 |
Charge-offs | ||||||
Recoveries | 5 | 2 | 92 | |||
Provision (credit) | 227 | (26) | (80) | 11 | ||
Balance at the end of period | 939 | 707 | 710 | 698 | 939 | 710 |
Commercial real estate [Member] | ||||||
Activity in the allowance for loan losses by loan category: | ||||||
Balance at beginning of period | 1,919 | 2,066 | 1,590 | 1,540 | 2,066 | 1,540 |
Charge-offs | ||||||
Recoveries | ||||||
Provision (credit) | 457 | (147) | 95 | 50 | ||
Balance at the end of period | 2,376 | 1,919 | 1,685 | 1,590 | 2,376 | 1,685 |
Construction [Member] | ||||||
Activity in the allowance for loan losses by loan category: | ||||||
Balance at beginning of period | 574 | 511 | 674 | 493 | 511 | 493 |
Charge-offs | ||||||
Recoveries | ||||||
Provision (credit) | 70 | 63 | 142 | 181 | ||
Balance at the end of period | 644 | 574 | 816 | 674 | 644 | 816 |
Home equity lines of credit [Member] | ||||||
Activity in the allowance for loan losses by loan category: | ||||||
Balance at beginning of period | 140 | 138 | 121 | 109 | 138 | 109 |
Charge-offs | ||||||
Recoveries | 1 | |||||
Provision (credit) | 42 | 2 | 17 | 11 | ||
Balance at the end of period | 182 | 140 | 138 | 121 | 182 | 138 |
Commercial business [Member] | ||||||
Activity in the allowance for loan losses by loan category: | ||||||
Balance at beginning of period | 1,495 | 1,184 | 1,182 | 1,151 | 1,184 | 1,151 |
Charge-offs | ||||||
Recoveries | ||||||
Provision (credit) | (287) | 311 | (78) | 31 | ||
Balance at the end of period | 1,208 | 1,495 | 1,104 | 1,182 | 1,208 | 1,104 |
Other [Member] | ||||||
Activity in the allowance for loan losses by loan category: | ||||||
Balance at beginning of period | 2 | 8 | 4 | 25 | 8 | 25 |
Charge-offs | ||||||
Recoveries | ||||||
Provision (credit) | (2) | (6) | (1) | (21) | ||
Balance at the end of period | 2 | 3 | 4 | 3 | ||
Unallocated [Member] | ||||||
Activity in the allowance for loan losses by loan category: | ||||||
Balance at beginning of period | 263 | 250 | 133 | 195 | 250 | 195 |
Charge-offs | ||||||
Recoveries | ||||||
Provision (credit) | (87) | 13 | 11 | (62) | ||
Balance at the end of period | $ 176 | $ 263 | $ 144 | $ 133 | $ 176 | $ 144 |
LOANS RECEIVABLE, NET AND RE_10
LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of ALL by Loan Category) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | $ 5,525 | $ 4,888 |
Individually evaluated for impairment | 221 | |
Collectively evaluated for impairment | 5,304 | 4,888 |
Balance - Loans receivable | 547,404 | 523,001 |
Loan balance individually evaluated for impairment | 12,154 | 10,354 |
Loan balance collectively evaluated for impairment | 535,250 | 512,647 |
One-to four-family residential [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 939 | 731 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 939 | 731 |
Balance - Loans receivable | 204,575 | 190,415 |
Loan balance individually evaluated for impairment | 2,177 | 1,405 |
Loan balance collectively evaluated for impairment | 202,398 | 189,010 |
Commercial real estate [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 2,376 | 2,066 |
Individually evaluated for impairment | 46 | |
Collectively evaluated for impairment | 2,330 | 2,066 |
Balance - Loans receivable | 245,860 | 232,544 |
Loan balance individually evaluated for impairment | 3,367 | 4,593 |
Loan balance collectively evaluated for impairment | 242,493 | 227,951 |
Construction [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 644 | 511 |
Individually evaluated for impairment | 175 | |
Collectively evaluated for impairment | 469 | 511 |
Balance - Loans receivable | 22,333 | 28,451 |
Loan balance individually evaluated for impairment | 5,206 | 2,900 |
Loan balance collectively evaluated for impairment | 17,127 | 25,551 |
Home equity lines of credit [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 182 | 138 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 182 | 138 |
Balance - Loans receivable | 22,170 | 17,832 |
Loan balance individually evaluated for impairment | ||
Loan balance collectively evaluated for impairment | 22,170 | 17,832 |
Commercial business [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 1,208 | 1,184 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 1,208 | 1,184 |
Balance - Loans receivable | 47,684 | 48,769 |
Loan balance individually evaluated for impairment | 1,404 | 1,456 |
Loan balance collectively evaluated for impairment | 46,280 | 47,313 |
Other [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 8 | |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 8 | |
Balance - Loans receivable | 4,782 | 4,990 |
Loan balance individually evaluated for impairment | ||
Loan balance collectively evaluated for impairment | 4,782 | 4,990 |
Unallocated [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 176 | 250 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 176 | 250 |
Balance - Loans receivable | ||
Loan balance individually evaluated for impairment | ||
Loan balance collectively evaluated for impairment |
DEPOSITS (Schedule of Deposits
DEPOSITS (Schedule of Deposits by Type of Account) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Deposits [Abstract] | ||
Demand accounts | $ 132,177 | $ 106,422 |
Savings accounts | 70,859 | 70,598 |
NOW accounts | 42,567 | 48,164 |
Money market accounts | 187,092 | 188,115 |
Certificates of deposit | 112,374 | 100,016 |
Retirement certificates | 15,869 | 16,760 |
Total deposits | $ 560,938 | $ 530,075 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 24 Months Ended | |
Jul. 31, 2018 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||||
Allocated income in excess in income taxes | $ 1 | |||
State tax rate | 11.50% | 2.50% | ||
Subsequent Event [Member] | ||||
Income Tax Contingency [Line Items] | ||||
State tax rate | 1.50% |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliation of Income Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense at the statutory federal tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Income tax expense at the statutory federal tax rate of 21% for the three months ended December 31, 2019 and 2018 | $ 77 | $ 203 | $ 221 | $ 382 |
State tax expense | 57 | 125 | 163 | 236 |
Other | (13) | (4) | (25) | (14) |
Income tax expense | $ 121 | $ 324 | $ 359 | $ 604 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Schedule of Financial Instruments Whose Contract Amounts Representing Credit Risk) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments - contract amounts | $ 71,596 | $ 73,223 |
Letters of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments - contract amounts | 967 | 1,315 |
Unused lines of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments - contract amounts | 51,855 | 56,405 |
Fixed rate loan commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments - contract amounts | 1,993 | 3,362 |
Variable rate loan commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments - contract amounts | $ 16,781 | $ 12,141 |