Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2022 | May 11, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity Registrant Name | PRUDENTIAL BANCORP, INC. | |
Entity Central Index Key | 0001578776 | |
Entity File Number | 000-55084 | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 46-2935427 | |
Entity Address, Address Line One | 1834 West Oregon Avenue | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19145 | |
City Area Code | 215 | |
Local Phone Number | 755-1500 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | PBIP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 7,776,287 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
ASSETS | ||
Cash and amounts due from depository institutions | $ 2,729 | $ 2,233 |
Interest-bearing deposits | 67,140 | 80,465 |
Total cash and cash equivalents | 69,869 | 82,698 |
Certificates of deposit | 1,106 | 1,106 |
Investment and mortgage-backed securities available for sale at fair value | 297,149 | 305,947 |
Investment and mortgage-backed securities held to maturity (fair value-March 31, 2022, $18,807; September 30, 2021, $21,161) | 18,653 | 20,074 |
Equity securities | 21 | 22 |
Loans receivable-net of allowance for loan losses (March 31, 2022, $7,922; September 30, 2021, $8,517) | 550,502 | 618,206 |
Accrued interest receivable | 3,891 | 4,326 |
Real estate owned | 3,828 | 4,109 |
Restricted bank stock | 9,009 | 10,091 |
Office properties and equipment-net | 6,733 | 6,850 |
Bank owned life insurance (BOLI) | 33,398 | 33,116 |
Deferred income taxes, net | 5,728 | 3,021 |
Goodwill | 6,102 | 6,102 |
Core deposit intangible | 205 | 246 |
Interest rate swap contracts | 10 | |
Prepaid expenses and other assets | 2,765 | 4,554 |
TOTAL ASSETS | 1,008,969 | 1,100,468 |
Deposits: | ||
Non-interest-bearing | 35,590 | 37,409 |
Interest-bearing | 635,186 | 674,106 |
Total deposits | 670,776 | 711,515 |
Advances from Federal Home Loan Bank - Long Term | 206,793 | 232,025 |
Accrued interest payable | 1,575 | 2,558 |
Advances from borrowers for taxes and insurance | 1,706 | 1,698 |
Interest rate swaps contracts | 12,834 | |
Accounts payable and accrued expenses | 7,989 | 9,382 |
Total liabilities | 888,839 | 970,012 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued | ||
Common stock, $.01 par value, 40,000,000 shares authorized; 10,819,006 issued and 7,776,287 outstanding at March 31, 2022; 10,819,006 issued and 7,769,387 outstanding at September 30, 2021 | 108 | 108 |
Additional paid-in capital | 118,465 | 118,424 |
Treasury stock, at cost: 3,042,719 shares at March 31, 2022 and 3,049,619 shares at September 30, 2021 | (44,241) | (44,351) |
Retained earnings | 52,685 | 58,450 |
Accumulated other comprehensive loss | (6,887) | (2,175) |
Total stockholders' equity | 120,130 | 130,456 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,008,969 | $ 1,100,468 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | ||
Investment and mortgage-backed securities held to maturity, fair value (in dollars) | $ 18,807 | $ 21,161 |
Allowance for loan losses on loans receivable (in dollars) | $ 7,922 | $ 8,517 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 10,819,006 | 10,819,006 |
Common stock, shares outstanding | 7,776,287 | 7,769,387 |
Number of treasury share purchased | 3,042,719 | 3,049,619 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
INTEREST INCOME: | ||||
Interest and fees on loans | $ 5,941,000 | $ 6,388,000 | $ 12,228,000 | $ 12,663,000 |
Interest on mortgage-backed securities | 883,000 | 1,428,000 | 1,918,000 | 3,044,000 |
Interest and dividends on investments | 1,823,000 | 1,643,000 | 3,586,000 | 3,357,000 |
Interest on interest-bearing deposits | 145,000 | 6,000 | 299,000 | 90,000 |
Total interest income | 8,792,000 | 9,465,000 | 18,031,000 | 19,154,000 |
INTEREST EXPENSE: | ||||
Interest on deposits | 1,762,000 | 1,961,000 | 3,710,000 | 4,131,000 |
Interest on advances from FHLB - short term | 14,000 | 39,000 | ||
Interest on advances from FHLB - long term | 1,342,000 | 1,765,000 | 2,704,000 | 3,576,000 |
Total interest expense | 3,104,000 | 3,740,000 | 6,414,000 | 7,746,000 |
NET INTEREST INCOME | 5,688,000 | 5,725,000 | 11,617,000 | 11,408,000 |
PROVISION FOR LOAN LOSSES | 2,900,000 | 0 | 2,900,000 | 0 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 2,788,000 | 5,725,000 | 8,717,000 | 11,408,000 |
NON-INTEREST INCOME: | ||||
Fees and other service charges | 125,000 | 114,000 | 247,000 | 253,000 |
Gain on equity securities | (1,000) | (7,000) | (1,000) | 3,000 |
Gain on sale of loans | 1,000 | 18,000 | 1,000 | 58,000 |
Swap income | (61,000) | 216,000 | (36,000) | 319,000 |
Earnings from BOLI | 138,000 | 152,000 | 282,000 | 313,000 |
Other | 85,000 | 82,000 | 164,000 | 166,000 |
Total non-interest income | 287,000 | 575,000 | 657,000 | 1,112,000 |
NON-INTEREST EXPENSES: | ||||
Salaries and employee benefits | 2,386,000 | 2,529,000 | 4,755,000 | 4,945,000 |
Data processing | 237,000 | 221,000 | 463,000 | 416,000 |
Professional services | 780,000 | 382,000 | 1,201,000 | 839,000 |
Office occupancy | 262,000 | 276,000 | 490,000 | 505,000 |
Depreciation | 111,000 | 108,000 | 220,000 | 219,000 |
Director compensation | 87,000 | 54,000 | 145,000 | 107,000 |
Federal Deposit Insurance Corporation premiums | 170,000 | 220,000 | 240,000 | 350,000 |
Real estate owned expense | 285,000 | 285,000 | ||
Advertising | 21,000 | 12,000 | 44,000 | 44,000 |
Litigation expenses | 6,423,000 | 6,423,000 | ||
Merger related expenses | 300,000 | 300,000 | ||
Core deposit amortization | 19,000 | 23,000 | 41,000 | 49,000 |
Other | 375,000 | 525,000 | 1,056,000 | 974,000 |
Total non-interest expenses | 11,456,000 | 4,350,000 | 15,663,000 | 8,448,000 |
INCOME BEFORE INCOME TAXES | (8,381,000) | 1,950,000 | (6,289,000) | 4,072,000 |
INCOME TAXES: | ||||
Current | (249,000) | 240,000 | (157,000) | 402,000 |
Deferred expense | (1,617,000) | (5,000) | (1,455,000) | 119,000 |
Total | (1,866,000) | 235,000 | (1,612,000) | 521,000 |
NET INCOME | $ (6,515,000) | $ 1,715,000 | $ (4,677,000) | $ 3,551,000 |
BASIC EARNINGS PER SHARE | $ (0.84) | $ 0.22 | $ (0.60) | $ 0.44 |
DILUTED EARNINGS PER SHARE | $ (0.84) | $ 0.21 | $ (0.60) | $ 0.44 |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ (6,515) | $ 1,715 | $ (4,677) | $ 3,551 |
Unrealized holding gain (loss) on available-for-sale securities | (15,868) | (4,874) | (17,064) | (2,792) |
Tax effect | 3,332 | 1,032 | 3,583 | 586 |
Unrealized holding gain on interest rate swaps | 7,679 | 3,164 | 11,100 | 4,559 |
Tax effect | (1,613) | (664) | (2,331) | (959) |
Total other comprehensive income | (6,470) | (1,342) | (4,712) | 1,394 |
Comprehensive income | $ (12,985) | $ 373 | $ (9,389) | $ 4,945 |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
BALANCE at Sep. 30, 2020 | $ 108 | $ 118,270 | $ (39,207) | $ 52,889 | $ (2,943) | $ 129,117 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 3,551 | 3,551 | ||||
Other comprehensive income | 1,394 | 1,394 | ||||
Dividends paid | (1,127) | (1,127) | ||||
Purchase of treasury stock | (2,906) | (2,906) | ||||
Treasury stock used for employee benefit plans | (143) | 204 | 61 | |||
Stock option expense | 84 | 84 | ||||
Restricted shares award expense | 84 | 84 | ||||
BALANCE at Mar. 31, 2021 | 108 | 118,295 | (41,909) | 55,313 | (1,549) | 130,258 |
BALANCE at Dec. 31, 2020 | 108 | 118,356 | (41,167) | 54,155 | (207) | 131,245 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 1,715 | 1,715 | ||||
Other comprehensive income | (1,342) | (1,342) | ||||
Dividends paid | (557) | (557) | ||||
Purchase of treasury stock | (946) | (946) | ||||
Treasury stock used for employee benefit plans | (143) | 204 | 61 | |||
Stock option expense | 41 | 41 | ||||
Restricted shares award expense | 41 | 41 | ||||
BALANCE at Mar. 31, 2021 | 108 | 118,295 | (41,909) | 55,313 | (1,549) | 130,258 |
BALANCE at Sep. 30, 2021 | 108 | 118,424 | (44,351) | 58,450 | (2,175) | 130,456 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | (4,677) | (4,677) | ||||
Other comprehensive income | (4,712) | (4,712) | ||||
Dividends paid | (1,088) | (1,088) | ||||
Purchase of treasury stock | (1) | (1) | ||||
Treasury stock used for employee benefit plans | (111) | 111 | ||||
Stock option expense | 80 | 80 | ||||
Restricted shares award expense | 72 | 72 | ||||
BALANCE at Mar. 31, 2022 | 108 | 118,465 | (44,241) | 52,685 | (6,887) | 120,130 |
BALANCE at Dec. 31, 2021 | 108 | 118,506 | (44,351) | 59,744 | (417) | 133,590 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | (6,515) | (6,515) | ||||
Other comprehensive income | (6,470) | (6,470) | ||||
Dividends paid | (544) | (544) | ||||
Purchase of treasury stock | (1) | (1) | ||||
Treasury stock used for employee benefit plans | (111) | 111 | ||||
Stock option expense | 39 | 39 | ||||
Restricted shares award expense | 31 | 31 | ||||
BALANCE at Mar. 31, 2022 | $ 108 | $ 118,465 | $ (44,241) | $ 52,685 | $ (6,887) | $ 120,130 |
UNAUDITED CONSOLIDATED STATEM_6
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||||
Dividends paid (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.14 | $ 0.57 |
Purchase of treasury stock | 79 | 62,500 | 79 | 152,009 |
Treasury stock used for employee benefit plan | 6,979 | 44,587 | 6,979 | 44,587 |
UNAUDITED CONSOLIDATED STATEM_7
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES OF CASH FLOWS - USD ($) | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
OPERATING ACTIVITIES: | ||
Net income | $ (4,677,000) | $ 3,551,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 220,000 | 219,000 |
Net amortization of premiums and other amortization | (301,000) | (372,000) |
Provision for loan losses | 2,900,000 | 0 |
Accretion of deferred loan fees and costs | (440,000) | (70,000) |
Income from bank owned life insurance | (282,000) | (313,000) |
Write-down of real estate owned | 281,000 | |
Gain on sale of loans | (1,000) | (58,000) |
Proceeds from the sale of loans held for sale | 1,041,000 | 3,820,000 |
Originations of loans held for sale | (1,040,000) | (3,762,000) |
Share-based compensation expense | 153,000 | 168,000 |
Holding (gains) losses on equity securities | 1,000 | (3,000) |
Deferred income tax expense | (1,455,000) | 119,000 |
Changes in assets and liabilities which provided (used) cash: | ||
Accrued interest receivable | 435,000 | (247,000) |
Accrued interest payable | (983,000) | (1,476,000) |
Other, net | 398,000 | 399,000 |
Net cash provided by (used in) operating activities | (3,750,000) | 1,975,000 |
INVESTING ACTIVITIES: | ||
Purchase of investment and mortgage-backed securities available for sale | (39,499,000) | (19,196,000) |
Purchase of investment and mortgage-backed securities held to maturity | (1,995,000) | |
Loans originated or acquired | (93,316,000) | (144,832,000) |
Principal collected on loans | 158,737,000 | 112,528,000 |
Principal payments received on investment and mortgage-backed securities: | ||
Held-to-maturity | 3,347,000 | 544,000 |
Available-for-sale | 29,722,000 | 81,683,000 |
Proceeds from redemption of FHLB stock | 1,093,000 | 2,541,000 |
Purchase of FHLB stock | (10,000) | (1,021,000) |
Purchases of equipment | (104,000) | (107,000) |
Net cash provided by investing activities | 57,975,000 | 32,140,000 |
FINANCING ACTIVITIES: | ||
Net increase (decrease) in demand deposits, NOW accounts, and savings accounts | (7,497,000) | (9,516,000) |
Net (decrease) increase in certificates of deposit | (33,242,000) | 32,311,000 |
Proceeds from FHLB advances - short term | (25,000,000) | |
Repayment of FHLB advances - long term | (25,232,000) | (8,615,000) |
Increase (decrease) in advances from borrowers for taxes and insurance | 8,000 | (1,175,000) |
Cash dividends paid | (1,088,000) | (1,127,000) |
Treasury stock used for employee benefit plans | (2,000) | 61,000 |
Purchase of treasury stock | (1,000) | (2,906,000) |
Net cash used in financing activities | (67,054,000) | (15,967,000) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (12,829,000) | 18,148,000 |
CASH AND CASH EQUIVALENTS-Beginning of period | 82,698,000 | 117,081,000 |
CASH AND CASH EQUIVALENTS-End of period | 69,869,000 | 135,229,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid on deposits and advances from FHLB | 7,397,000 | 9,222,000 |
Income taxes paid | $ 250,000 | $ 60,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SIGNIFICANT ACCOUNTING POLICIES Prudential Bancorp, Inc. (the “Company”) is a Pennsylvania corporation and the parent holding company for Prudential Bank (the “Bank”). The Company is a registered bank holding company. The Bank is a community-oriented, Pennsylvania-chartered savings bank headquartered in South Philadelphia. The banking office network currently consists of the headquarters and main office (which includes a branch office), an administrative office, and nine additional full-service branch offices. Eight of the branch offices are located in Philadelphia (Philadelphia County), one is in Drexel Hill, Delaware County, and one is in Huntingdon Valley, Montgomery County (both of the latter are Pennsylvania counties). The Bank maintains ATMs at all 10 of the banking offices. The Bank also provides on-line and mobile banking services. The Bank is subject to regulation by the Pennsylvania Department of Banking and Securities (the “Department”), as its chartering authority and primary regulator, and by the Federal Deposit Insurance Corporation (the “FDIC”), which insures the Bank’s deposits up to applicable limits. As a bank holding company, the Company is subject to the regulation of the Board of Governors of the Federal Reserve System. Basis of presentation – Use of Estimates in the Preparation of Financial Statements — Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments Update for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We expect to 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, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326, which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10-3. The election must be applied on an instrument-by-instrument basis and is not available for either available-for-sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings. For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position and/or results of operations. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In March 2022, the FASB issued ASU 2022-01 , Derivatives and Hedging (ASC 815): Fair Value Hedging - Portfolio Layer Method In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (ASC 326): Troubled Debt Restructurings (TDRs) and Vintage Disclosures financing receivables by credit quality indicator and class of financing receivable by year of origination. The guidance is only for entities that have adopted the amendments in Update 2016-13 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption using prospective application, including adoption in an interim period where the guidance should be applied as of the beginning of the fiscal year. This Update is not expected to have a significant impact on the Company’s financial statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Mar. 31, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 2. EARNINGS PER SHARE Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock issued, net of any treasury shares and unearned restricted share awards, during the period. Diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding, net of any treasury shares, after consideration of the potential dilutive effect of common stock equivalents (CSEs), based upon the treasury stock method using an average market price for the period. The calculated basic and diluted earnings per share are as follows: Three Months Ended March 31, 2022 2021 (Dollars in Thousands Except Per Share Data) Basic Diluted Basic Diluted Net (loss) income $ (6,515) $ (6,515) $ 1,715 $ 1,715 Weighted average common shares outstanding 7,769,095 7,769,095 7,975,683 7,975,683 Effect of CSEs — — — 14,671 Adjusted weighted average common shares used in earnings per share computation 7,769,095 7,769,095 7,975,683 7,990,354 Earnings (loss) per share $ (0.84) $ (0.84) $ 0.22 $ 0.21 Six Months Ended March 31, 2022 2021 (Dollars in Thousands, Except Share and Per Share Data) Basic Diluted Basic Diluted Net (loss) income $ (4,677) $ (4,677) $ 3,551 $ 3,551 Weighted average common shares outstanding 7,769,812 7,769,812 8,040,907 8,040,907 Effect of CSEs — — — 4,512 Adjusted weighted average common shares used in earnings per share computation 7,769,812 7,769,812 8,040,907 8,045,419 Earnings (loss) per share $ (0.60) $ (0.60) $ 0.44 $ 0.44 As of March 31, 2022 and 2021, there were 299,728 and 267,728 shares of common stock, respectively, subject to options with exercise prices less than the then current market. At March 31, 2022 and 2021, there were 221,530 and 249,030 shares of common stock, respectively, subject to options that had exercise prices greater than the then current market value and were considered anti-dilutive at such dates. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Mar. 31, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS). | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3. ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods presented: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Total Total accumulated accumulated Unrealized gain Unrealized (loss) gain other Unrealized gain Unrealized (loss) gain other (loss) on AFS on interest rate swaps comprehensive (loss) on AFS on interest rate swaps comprehensive securities (a) (a) loss securities (a) (a) loss Beginning balance, January 1 $ 5,153 $ (5,570) $ (417) $ 12,221 $ (12,428) $ (207) Other comprehensive (loss) income before reclassification (12,536) 6,066 (6,470) (3,842) 2,500 (1,342) Total other comprehensive income (loss) (7,383) 496 (6,887) 8,379 (9,928) (1,549) Ending balance, March 31 $ (7,383) $ 496 $ (6,887) $ 8,379 $ (9,928) $ (1,549) (a) All amounts are net of tax. Amounts in parentheses indicate debits. Six Months Ended March 31, 2022 Six Months Ended March 31, 2021 Total Total accumulated accumulated Unrealized gain Unrealized (loss) gain other Unrealized gain Unrealized (loss) gain other (loss) on AFS on interest rate swaps comprehensive (loss) on AFS on interest rate swaps comprehensive securities (a) (a) loss securities (a) (a) loss Beginning balance, October 1 $ 6,098 $ (8,273) $ (2,175) $ 10,585 $ (13,528) $ (2,943) Other comprehensive (loss) income before reclassification (13,481) 8,769 (4,712) (2,206) 3,600 1,394 Total other comprehensive income (loss) (7,383) 496 (6,887) 8,379 (9,928) (1,549) Ending balance, March 31 $ (7,383) $ 496 $ (6,887) $ 8,379 $ (9,928) $ (1,549) (a) All amounts are net of tax. Amounts in parentheses indicate debits. |
INVESTMENT AND MORTGAGE-BACKED
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 6 Months Ended |
Mar. 31, 2022 | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 4. INVESTMENT AND MORTGAGE-BACKED SECURITIES The amortized cost and fair value of investment and mortgage-backed securities, with gross unrealized gains and losses, are as follows: March 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 2,555 $ 58 $ — $ 2,613 State and political subdivisions 76,460 275 (3,148) 73,587 Mortgage-backed securities - U.S. government agencies 122,350 205 (4,264) 118,291 Corporate debt securities 105,130 895 (3,367) 102,658 Total debt securities available for sale $ 306,495 $ 1,433 $ (10,779) $ 297,149 Securities Held to Maturity: U.S. government and agency obligations $ 2,995 $ 85 $ (85) $ 2,995 State and political subdivisions 11,914 222 — 12,136 Mortgage-backed securities - U.S. government agencies 3,744 80 (148) 3,676 Total securities held to maturity $ 18,653 $ 387 $ (233) $ 18,807 September 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 3,117 $ 77 $ — $ 3,194 State and political subdivisions 70,625 1,793 (159) 72,259 Mortgage-backed securities - U.S. government agencies 131,842 4,267 (756) 135,353 Corporate debt securities 92,645 2,683 (187) 95,141 Total debt securities $ 298,229 $ 8,820 $ (1,102) $ 305,947 Securities Held to Maturity: U.S. government and agency obligations $ 1,000 $ 173 $ — $ 1,173 State and political subdivisions 14,983 727 — 15,710 Mortgage-backed securities - U.S. government agencies 4,091 211 (24) 4,278 Total securities held to maturity $ 20,074 $ 1,111 $ (24) $ 21,161 The Company recognized holding losses on equity securities of $1,000 for both the three and six months ended March 31, 2022, a holding loss on equity securities of $7,000 and a holding gain on equity securities of $3,000, during the three and six months ended March 31, 2021, respectively. As of March 31, 2022, the Bank maintained $101.3 million of securities in a safekeeping account at the FHLB of Pittsburgh available to be used for collateral and convenience. As of March 31, 2022, the Bank was only required to hold $16.7 million as specific collateral for its borrowings from the FHLB of Pittsburgh; therefore the $84.6 million of excess securities as of such date were not restricted and could be sold or transferred if needed. The following table shows the gross unrealized losses and related fair values of the Company’s investment and mortgage-backed securities, aggregated by investment category and length of time that individual securities had been in a continuous loss position as of March 31, 2022: Less than 12 months More than 12 months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in Thousands) Securities Available for Sale: State and political subdivisions $ (3,148) $ 43,976 $ — $ — $ (3,148) $ 43,976 Mortgage-backed securities -U.S. government agencies (2,241) 76,727 (2,023) 17,932 (4,264) 94,659 Corporate debt securities (3,184) 38,269 (183) 4,817 (3,367) 43,086 Total securities available for sale $ (8,573) $ 158,972 $ (2,206) $ 22,749 $ (10,779) $ 181,721 Securities Held to Maturity: U.S. government and agency obligations $ (85) $ 1,910 $ — $ — $ (85) $ 1,910 Mortgage-backed securities -U.S. government agencies (148) 2,677 — — (148) 2,677 Total securities held to maturity $ (233) $ 4,587 $ — $ — $ (233) $ 4,587 Total $ (8,806) $ 163,559 $ (2,206) $ 22,749 $ (11,012) $ 186,308 The following table shows the gross unrealized losses and related fair values of the Company’s investment and mortgage-backed securities, aggregated by investment category and length of time that individual securities had been in a continuous loss position as of September 30, 2021: Less than 12 months More than 12 months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in Thousands) Securities Available for Sale: State and political subdivisions $ (93) $ 14,383 $ (66) $ 4,417 $ (159) $ 18,800 Mortgage-backed securities - U.S. government agencies (487) 18,493 (269) 7,849 (756) 26,342 Corporate debt securities (187) 24,816 — — (187) 24,816 Total securities available for sale $ (767) $ 57,692 $ (335) $ 12,266 $ (1,102) $ 69,958 Securities Held to Maturity: Mortgage-backed securities - U.S. government agencies (24) $ 1,269 $ — $ — $ (24) $ 1,269 Total securities held to maturity $ (24) $ 1,269 $ — $ — $ (24) $ 1,269 Total $ (791) $ 58,961 $ (335) $ 12,266 $ (1,126) $ 71,227 Management evaluates securities for other-than-temporary impairment (“OTTI”) at least once each quarter, and more frequently when economic or market concerns warrant such evaluation. The evaluation is based upon factors such as the creditworthiness of the issuers/guarantors, the underlying collateral, if applicable, and the continuing performance of the securities. Management also evaluates other facts and circumstances that may be indicative of an OTTI condition. This includes, but is not limited to, an evaluation of the type of security, the length of time and extent to which the fair value of the security has been less than cost, and the near-term prospects of the issuer. The Company assesses whether a credit loss exists with respect to a security by considering whether (1) the Company has the intent to sell the security, (2) it is more likely than not that it will be required to sell the security before recovery has occurred, or (3) it does not expect to recover the entire amortized cost basis of the security. The Company bifurcates the OTTI impact on impaired securities where impairment in value is deemed to be other than temporary between the component representing credit loss and the component representing loss related to other factors. The portion of the fair value decline attributable to credit loss must be recognized through a charge to earnings. The credit component is determined by comparing the present value of the cash flows expected to be collected, discounted at the rate in effect before recognizing any OTTI, with the amortized cost basis of the debt security. The Company uses the cash flows expected to be realized from the security, which includes assumptions about interest rates, timing and severity of defaults, estimates of potential recoveries, the cash flow distribution from the security and other factors, then applies a discount rate equal to the effective yield of the security. The difference between the present value of the expected cash flows and the amortized book value is considered a credit loss. The fair value of the security is determined using the same expected cash flows; the discount rate is a rate the Company determines from open market and other sources as appropriate for the particular security. The difference between the fair value and the security’s remaining amortized cost is recognized in other comprehensive income (loss). For both the three and six months ended March 31, 2022 and 2021, the Company did not record any credit losses on investment securities through earnings. U.S. government and agency obligations – Mortgage-Backed Securities – Corporate Debt Securities State and political subdivisions The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The maturity table below excludes mortgage-backed securities because the contractual maturities of such securities are not indicative of actual maturities due to significant prepayments. March 31, 2022 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in Thousands) Due within one year $ 1,035 $ 1,036 $ 1,005 $ 1,016 Due after one through five years 5,399 5,565 54,117 53,582 Due after five through ten years 3,448 3,479 56,360 54,412 Due after ten years 5,027 5,051 72,663 69,848 Total $ 14,909 $ 15,131 $ 184,145 $ 178,858 The Company sold no investment securities during the three and six month periods ended March 31, 2022 or 2021. |
LOANS RECEIVABLE
LOANS RECEIVABLE | 6 Months Ended |
Mar. 31, 2022 | |
LOANS RECEIVABLE | |
LOANS RECEIVABLE | 5. LOANS RECEIVABLE Loans receivable consist of the following: March 31, September 30, 2022 2021 (Dollars in Thousands) One-to-four family residential $ 183,080 $ 202,330 Multi-family residential 80,391 76,122 Commercial real estate 141,474 165,992 Construction and land development 174,970 205,413 Commercial business 62,011 57,236 Consumer 561 530 Total loans 642,487 707,623 Undisbursed portion of loans-in-process (83,890) (80,620) Deferred loan fees (173) (280) Allowance for loan losses (7,922) (8,517) Net loans $ 550,502 $ 618,206 The following table summarizes by loan segment the balance in the allowance for loan losses and the loans individually and collectively evaluated for impairment by loan segment at March 31, 2022: One- to four- Multi-family Commercial Construction and Commercial family residential residential real estate land development business Consumer Unallocated Total (Dollars in Thousands) Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ $ — Collectively evaluated for impairment 1,600 1,159 1,990 1,507 903 18 745 7,922 Total ending allowance balance $ 1,600 $ 1,159 $ 1,990 $ 1,507 $ 903 $ 18 $ 745 $ 7,922 Loans: Individually evaluated for impairment $ 2,372 $ — $ — $ 1,963 $ — $ — $ 4,335 Collectively evaluated for impairment 180,708 80,391 141,474 173,007 62,011 561 638,152 Total loans $ 183,080 $ 80,391 $ 141,474 $ 174,970 $ 62,011 $ 561 $ 642,487 The following table summarizes by loan segment the balance in the allowance for loan losses and the loans individually and collectively evaluated for impairment by loan segment at September 30, 2021: One- to four- Multi-family Commercial Construction and Commercial family residential residential real estate land development business Consumer Unallocated Total (Dollars in Thousands) Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,665 1,051 2,220 1,968 799 15 799 8,517 Total ending allowance balance $ 1,665 $ 1,051 $ 2,220 $ 1,968 $ 799 $ 15 $ 799 $ 8,517 Loans: Individually evaluated for impairment $ 3,006 $ — $ 1,280 $ 4,093 $ — $ — $ 8,379 Collectively evaluated for impairment 199,324 76,122 164,712 201,320 57,236 530 699,244 Total loans $ 202,330 $ 76,122 $ 165,992 $ 205,413 $ 57,236 $ 530 $ 707,623 The loan portfolio is segmented at a level that allows management to monitor both risk and performance. Management evaluates for potential impairment all construction loans, multi-family loans, commercial real estate loans, commercial business loans, and all loans more than 90 days delinquent as to principal and/or interest. Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect in full the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Once the determination is made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is generally measured by comparing the recorded investment in the loan to the fair value of the loan using one of the following three methods: (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. Management primarily utilizes the fair value of collateral method as a practically expedient alternative. On collateral method evaluations, any portion of the loan deemed uncollectible is charged-off against the loan loss allowance. The following table presents impaired loans by class as of March 31, 2022, segregated by those for which a specific allowance was required and those for which no specific allowance was required. Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ — $ — $ 2,372 $ 2,372 $ 2,721 Construction and land development — — 1,963 1,963 2,157 Total $ — $ — $ 4,335 $ 4,335 $ 4,878 The following table presents impaired loans by class as of September 30, 2021, segregated by those for which a specific allowance was required and those for which no specific allowance was required. Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ — $ — $ 3,006 $ 3,006 $ 3,304 Commercial real estate — — 1,280 1,280 1,457 Construction and land development — — 4,093 4,093 4,340 Total $ — $ — $ 8,379 $ 8,379 $ 9,101 The following tables present the average recorded investment in impaired loans and related interest income recognized for the periods indicated: Three Months Ended March 31, 2022 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 2,689 $ 4 $ 10 Commercial real estate 1,280 — — Construction and land development 2,778 — — Total impaired loans $ 6,747 $ 4 $ 10 Three Months Ended March 31, 2021 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 3,281 $ 4 $ 2 Commercial real estate 1,329 — — Construction and land development 8,338 — — Total impaired loans $ 12,948 $ 4 $ 2 Six Months Ended March 31, 2022 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 2,854 $ 8 $ 15 Commercial real estate 853 — — Construction and land development 3,216 — — Total impaired loans $ 6,924 $ 8 $ 15 Six Months Ended March 31, 2021 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 3,219 $ 9 $ 2 Commercial real estate 1,358 — — Construction and land development 8,400 — — Total impaired loans $ 12,977 $ 9 $ 2 Federal regulations and our loan policy require that the Company utilize an internal asset classification system as a means of reporting problem and potential problem assets. The Company has incorporated an internal asset classification system, consistent with Federal banking regulations, as a part of its credit monitoring system. Management currently classifies problem and potential problem assets as “special mention”, “substandard,” “doubtful” or “loss” assets. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. Assets which do not currently expose the insured institution to sufficient risk to warrant classification in one of the three aforementioned categories but possess weaknesses are required to be designated “special mention.” The following tables present the classes of the loan portfolio in which a formal risk weighting system is utilized summarized by the aggregate “Pass” and the criticized category of “special mention”, and the classified categories of “substandard”, “doubtful” and “loss” within the Company’s risk rating system as applied to the loan portfolio. The Company had no loans classified as “doubtful” or “loss” at either of the dates presented. March 31, 2022 Special Pass Mention Substandard Doubtful Total (Dollars in Thousands) One-to-four residential $ 179,502 $ 1,206 $ 2,372 $ — $ 183,080 Multi-family residential 80,391 — — — 80,391 Commercial real estate 139,455 2,019 — — 141,474 Construction and land development 173,007 — 1,963 — 174,970 Commercial business 62,011 — — — 62,011 Total $ 634,366 $ 3,225 $ 4,335 $ — $ 641,926 September 30, 2021 Special Pass Mention Substandard Doubtful Total (Dollars in Thousands) One-to-four residential $ 197,920 $ 1,404 $ 3,006 $ — $ 202,330 Multi-family residential 71,497 4,625 — — 76,122 Commercial real estate 162,657 2,055 1,280 — 165,992 Construction and land development 201,320 — 4,093 — 205,413 Commercial business 57,236 — — — 57,236 Total $ 690,630 $ 8,084 $ 8,379 $ — $ 707,093 The Company evaluates the classification of consumer loans primarily on a pooled basis. If the Company becomes aware that adverse or distressed conditions exist that may affect a particular loan, the loan is downgraded following the above definitions of special mention, substandard, doubtful and loss. The following tables represent loans in which a formal risk rating system is not utilized, but loans are segregated between performing and non-performing based primarily on delinquency status. Non-performing loans that would be included in the table are those loans greater than 90 days past due as to principal and/or interest that do not have a designated risk rating. March 31, 2022 Non- Performing Performing Total (Dollars in Thousands) Consumer $ 561 $ — $ 561 Total $ 561 $ — $ 561 September 30, 2021 Non- Performing Performing Total (Dollars in Thousands) Consumer $ 530 $ — $ 530 Total $ 530 $ — $ 530 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 due or overdue, as the case may be. The following tables present the loan categories of the loan portfolio summarized by the aging categories of performing loans, delinquent loans and nonaccrual loans: March 31, 2022 90 Days+ 30 ‑ 89 Days 90 Days + Total Total Non- Past Due Current Past Due Past Due Past Due Loans Accrual and Accruing (Dollars in Thousands) One-to-four family residential $ 181,840 $ 8 $ 1,232 $ 1,240 $ 183,080 $ 2,372 $ — Multi-family residential 80,391 — — — 80,391 — — Commercial real estate 141,474 — — — 141,474 — — Construction and land development 173,007 — 1,963 1,963 174,970 1,963 — Commercial business 62,011 — — — 62,011 — — Consumer 561 — — — 561 — — Total Loans $ 639,284 $ 8 $ 3,195 $ 3,203 $ 642,487 $ 4,335 $ — September 30, 2021 90 Days+ 30 ‑ 89 Days 90 Days + Total Total Non- Past Due Current Past Due Past Due Past Due Loans Accrual and Accruing (Dollars in Thousands) One-to-four family residential $ 199,799 $ 487 $ 2,044 $ 2,531 $ 202,330 $ 3,006 $ — Multi-family residential 76,122 — — — 76,122 — — Commercial real estate 164,712 — 1,280 1,280 165,992 1,280 — Construction and land development 201,320 — 4,093 4,093 205,413 4,093 — Commercial business 57,236 — — — 57,236 — — Consumer 493 37 — 37 530 — — Total Loans $ 699,682 $ 524 $ 7,417 $ 7,941 $ 707,623 $ 8,379 $ — The allowance for loan losses is established through a provision for loan losses charged to expense. The Company maintains the allowance at a level believed to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate at each reporting date. Management reviews the allowance for loan losses no less than quarterly in order to identify these inherent losses and to assess the overall collection probability for the loan portfolio in view of these inherent losses. For each primary type of loan, a loss factor is established reflecting an estimate of the known and inherent losses in such loan type contained in the portfolio using both a quantitative analysis as well as consideration of qualitative factors. The evaluation process includes, among other things, an analysis of delinquency trends, non-performing loan trends, the level of charge-offs and recoveries, prior loss experience, total loans outstanding, the volume of loan originations, the type, size and geographic concentration of the Company’s loans, the value of collateral securing the loans, the borrowers’ ability to repay and repayment performance, the number of loans requiring heightened management oversight, local economic conditions and industry experience. For the three and six months ended March 31, 2022 and 2021, the analysis took into account the pandemic and its effects on the Company's business, especially with respect to commercial real estate, commercial business and construction and land development loans. Commercial real estate loans entail significant additional credit risks compared to owner-occupied one-to-four family residential mortgage loans, as they generally involve large loan balances concentrated with a single borrower or groups of related borrowers. In addition, the payment experience on loans secured by income-producing properties typically depends on the successful operation of the related real estate project and/or business operation of the borrower who is, in some cases, also the primary occupant, and thus may be subject to a greater extent to the effects of adverse conditions in the real estate market and in the economy in general. Commercial business loans typically involve a higher risk of default than residential loans of like duration since their repayment is generally dependent on the successful operation of the borrower’s business and the sufficiency of collateral, if any. Land acquisition, development and construction lending exposes the Company to greater credit risk than permanent mortgage financing. The repayment of land acquisition, development and construction loans depends upon the sale of the property to third parties and/or the availability of permanent financing upon completion of all improvements. These events may adversely affect the sale of the properties, potentially reducing both the borrowers’ ability to make required payments as well as reducing the value of the collateral property. Such lending is additionally subject to the risk that if the estimate of construction cost proves to be inaccurate, the Company potentially will be compelled to advance additional funds to allow completion of the project. In addition, if the estimate of value proves to be inaccurate, the Company may be confronted with a project, when completed, having less value than the loan amount. If the Company is forced to foreclose on a construction project prior to completion, there is no assurance that the Company would be able to recover the entire unpaid portion of the loan. The following tables summarize the primary segments of the allowance for loan losses. Activity in the allowance is presented for both the three and six month periods ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at December 31, 2021 $ 1,656 $ 1,053 $ 2,300 $ 1,648 $ 925 $ — $ — $ 16 $ 784 $ 8,382 Charge-offs (736) — (1,289) (1,270) (72) — — — — (3,367) Recoveries 7 — — — — — — — — 7 Provision 673 106 979 1,129 50 — — 2 (39) 2,900 ALLL balance at March 31, 2022 $ 1,600 $ 1,159 $ 1,990 $ 1,507 $ 903 $ — $ — $ 18 $ 745 $ 7,922 Six Months Ended March 31, 2022 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2021 $ 1,665 $ 1,051 $ 2,220 $ 1,968 $ 799 $ — $ — $ 15 $ 799 $ 8,517 Charge-offs (736) — (1,425) (1,270) (72) — — — — (3,503) Recoveries 8 — — — — — — — — 8 Provision 663 108 1,195 809 176 — 3 (54) 2,900 ALLL balance at March 31, 2022 $ 1,600 $ 1,159 $ 1,990 $ 1,507 $ 903 $ — $ — $ 18 $ 745 $ 7,922 Three Months Ended March 31, 2021 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at December 31, 2019 $ 2,011 $ 457 $ 1,935 $ 2,828 $ 319 $ — $ 3 $ 6 $ 759 $ 8,318 Charge-offs — — — — — — — — — — Recoveries — — — — — — — 35 — 35 Provision (428) 263 34 (118) 261 — — (36) 24 — ALLL balance at March 31, 2021 $ 1,583 $ 720 $ 1,969 $ 2,710 $ 580 $ — $ 3 $ 5 $ 783 $ 8,353 Six Months Ended March 31, 2021 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2020 $ 1,877 $ 460 $ 1,989 $ 2,888 $ 194 $ 89 $ 3 $ 6 $ 797 $ 8,303 Charge-offs — — — — — — — — — — Recoveries 1 — — — 14 — — 35 — 50 Provision (295) 260 (20) (178) 372 (89) — (36) (14) — ALLL balance at March 31, 2021 $ 1,583 $ 720 $ 1,969 $ 2,710 $ 580 $ — $ 3 $ 5 $ 783 $ 8,353 The Company recorded a provision for loan losses of $2.9 million for the three and six months ended March 31, 2022 compared to no provision for loan losses in either of the same periods in fiscal 2021. During the three and six months ending March 31, 2022, the Company recorded eight charge offs totaling $3.5 million while during the same periods the Company recorded recoveries aggregating $7,000 and $8,000, respectively. During the three and six months ending March 31, 2021, the Company recorded no charge offs while during the same periods the Company recorded recoveries aggregating $35,000 and $50,000, respectively. The preponderance of the charge-offs during the quarter ended March 31, 2022 were attributable to the previously disclosed litigation settlements described in Item 1 of Part II below. At March 31, 2022 the Company had two loans two loans totaling $692,000 that were classified as troubled debt restructurings (“TDRs”). The two TDRs are on non-accrual and consist of loans secured by two single-family residential properties. Both TDRs are performing in accordance with the restructured terms. As part of the lawsuit settlement described in Item I of Part II, a commercial real estate loan that was a TDR at September 30, 2021 with a balance of $705,000 was forgiven during the quarter ended March 31, 2022. The Company restructured one loan aggregating $516,000 as a TDR during the six month period ended March 31, 2022. The loan is on nonaccrual and will remain on nonaccrual until a sufficient payment history under the restructured terms is developed. The Company did not restructure any loans as a TDR during the six months ended March 31, 2021. No TDRs defaulted during the three and six month periods ending March 31, 2022 or 2021, with the exception of the loan forgiveness described above. |
DEPOSITS
DEPOSITS | 6 Months Ended |
Mar. 31, 2022 | |
DEPOSITS. | |
DEPOSITS | 6. DEPOSITS Deposits consist of the following major classifications: March 31, September 30, 2022 2021 Amount Percent Amount Percent (Dollars in Thousands) Non-interest-bearing checking accounts $ 35,590 5.3 % $ 37,409 5.3 % Interest-bearing checking accounts 82,042 12.2 % 87,752 12.3 % Money market deposit accounts 111,751 16.7 % 111,488 15.7 % Passbook, club and statement savings 229,758 34.2 % 229,989 32.3 % Certificates maturing in six months or less 123,757 18.5 % 143,767 20.2 % Certificates maturing in more than six months 87,878 13.1 % 101,110 14.2 % Total $ 670,776 100.0 % $ 711,515 100.0 % Certificates in the amount of $250,000 and over totaled $92.4 million as of March 31, 2022 and $95.3 million as of September 30, 2021. |
ADVANCES FROM FEDERAL HOME LOAN
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | 6 Months Ended |
Mar. 31, 2022 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | 7. ADVANCES FROM FEDERAL HOME LOAN BANK – LONG TERM Pursuant to collateral agreements with the FHLB of Pittsburgh, advances are secured by a blanket collateral of loans held by the Bank and qualifying fixed-income securities and FHLB stock. The long-term advances outstanding as of March 31, 2022 and September 30, 2021 were as follows: Lomg-term FHLB advances: Maturity range Weighted average Stated interest rate range March 31, September 30, Description from to interest rate from to 2022 2021 (Dollars in Thousands) Fixed Rate - Amortizing 1 ‑ Oct ‑ 21 30 ‑ Sep ‑ 22 2.99 % 2.94 % 3.05 % $ 872 $ 2,227 Fixed Rate - Amortizing 1 ‑ Oct ‑ 22 30 ‑ Sep ‑ 23 2.89 % 1.94 % 3.11 % 2,675 3,551 Total 2.92 % 3,547 5,778 Fixed Rate - Advances 1 ‑ Oct ‑ 21 30 ‑ Sep ‑ 22 2.22 % 1.94 % 2.33 % 40,249 63,250 Fixed Rate - Advances 1 ‑ Oct ‑ 22 30 ‑ Sep ‑ 23 2.52 % 2.00 % 3.22 % 94,999 94,999 Fixed Rate - Advances 1 ‑ Oct ‑ 23 30 ‑ Sep ‑ 24 2.88 % 2.38 % 3.20 % 67,998 67,998 Total 2.58 % 203,246 226,247 2.59 % Total $ 206,793 $ 232,025 |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Mar. 31, 2022 | |
DERIVATIVES | |
DERIVATIVES | 8. DERIVATIVES The Bank has contracted with a third party to participate in interest rate swap contracts. There were thirteen cash flow hedges tied to wholesale funding at both March 31, 2022 and September 30, 2021. These interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments. During the quarter ended March 31, 2022 and 2021, $3,000 of income was recognized as ineffectiveness through earnings. During the six months ended March 31, 2022, $3,000 of income was recognized, while $5,000 of expense was recognized as ineffectiveness during the comparable period in 2021. There were nine interest rate swaps designated as fair value hedges involving the receipt of variable-rate payments from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements that were applicable to three loans and seven investment securities as of both March 31, 2022 and September 30, 2021. There was $400,000 on deposit with the counterparty as collateral for the hedges at March 31, 2022. Below is a summary of the interest rate swap agreements and their terms as of March 31, 2022. 2022 Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Gain (Loss) (Dollars in Thousands) State and political subdivisions $ 21,570 3.06 % 3.07 % 3 Mth Libor 1-Feb-27 1-May-28 $ (624) Commercial loans 23,656 4.10 % 5.74 % 1 Mth Libor +225 to 276 bp 13-Jun-25 1-Aug-26 — 30 day wholesale funding 90,000 1.36 % 2.70 % 1 Mth Libor 15-Feb-24 12-Jun-26 1,177 90 day wholesale funding 135,000 2.51 % 2.78 % 3 Mth Libor 11-Jan-24 27-Mar-24 (543) $ 10 The increase in the value of the swap agreements during the 2022 periods was due to the expectation of future rate increases. Below is a summary of the interest rate swap agreements and their terms as of September 30, 2021. 2021 Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Loss (Dollars in T housands) State and political subdivisions $ 21,570 3.06 % 3.07 % 3 Mth Libor 1-Feb-27 1-May-28 $ (2,365) Commercial loans 23,656 4.10 % 5.74 % 1 Mth Libor +225 to 276 bp 13-Jun-25 1-Aug-26 — 30 day wholesale funding 90,000 1.36 % 2.70 % 1 Mth Libor 15-Feb-24 12-Jun-26 (3,495) 90 day wholesale funding 135,000 2.51 % 2.78 % 3 Mth Libor 11-Jan-24 27-Mar-24 (6,974) $ (12,834) All interest swaps are carried at fair value in accordance with FASB ASC 815 “Derivatives and Hedging.” |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Mar. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | 10. INCOME TAXES Items that gave rise to significant portions of deferred income taxes are as follows: March 31, September 30, 2022 2021 (Dollars in Thousands) Deferred tax assets: Allowance for loan losses $ 1,591 $ 1,716 Nonaccrual interest 238 395 Accrued vacation 14 14 Capital loss carryforward 4 4 Other real estate owned 67 — Split dollar life insurance 9 9 Post-retirement benefits 65 67 Unrealized losses on available for sale securities 1,966 — Unrealized losses on interest rate swaps — 2,199 Deferred compensation 748 767 Net operating loss 1,836 — Goodwill 41 47 Lease liability 236 256 Other 23 79 Employee benefit plans 210 242 Total deferred tax assets 7,048 5,795 Valuation allowance (4) (4) Total deferred tax assets, net of valuation allowance 7,044 5,791 Deferred tax liabilities: Property 167 127 Right of Use 214 233 Realized gain on equity securities 3 3 Unrealized gains on available for sale securities — 1,621 Unrealized gains on interest rate swaps 132 — Purchase accounting adjustments 423 394 Deferred loan fees 377 392 Total deferred tax liabilities 1,316 2,770 Net deferred tax assets $ 5,728 $ 3,021 The Company establishes a valuation allowance for deferred tax assets when management believes that the use of the deferred tax assets is not likely to be fully realized through future reversals of existing taxable temporary differences and/or, to a lesser extent, future taxable income. The tax deduction generated by the redemption of the shares of a mutual fund held by the Bank and the subsequent impairment charge on the assets acquired through the redemption in kind are considered capital losses and can only be utilized to the extent of capital gains recognized over a five year period, resulting in the establishment of a valuation allowance for the carryforward period. The valuation allowance totaled $4,000 at both March 31, 2022 and September 30, 2021. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the consolidated statements of operations as a component of income tax expense. The Company’s federal and state income tax returns for taxable years through September 30, 2017 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue. |
STOCK COMPENSATION PLANS
STOCK COMPENSATION PLANS | 6 Months Ended |
Mar. 31, 2022 | |
STOCK COMPENSATION PLANS | |
STOCK COMPENSATION PLANS | 11. STOCK COMPENSATION PLANS The Company maintains the 2008 Recognition and Retention Plan (“RRP”) which is administered by a committee of the Board of Directors of the Company. The RRP provides for the grant of shares of common stock of the Company to officers, employees and directors of the Company. Grants can no longer be made pursuant to the 2008 RRP even if previously awarded grants are forfeited. During February 2015, shareholders approved the 2014 Stock Incentive Plan (the “2014 SIP”). As part of the 2014 SIP, a maximum of 285,655 shares of common stock can be awarded as restricted stock awards or units, of which 233,500 shares were awarded during February 2015. In March 2019, the Company granted 8,209 shares under the 2008 RRP and 18,291 shares under the 2014 SIP. There were no shares awarded during 2020 and 2021. Shares subject to awards under either plan generally vest at the rate of 20% per year over five years. Compensation expense related to the shares subject to restricted stock awards granted is recognized ratably over the five-year vesting period in an amount which totals the grant date fair value multiplied by the number of shares subject to the grant. During the three and six months ended March 31, 2022, an aggregate of $31,000 and $72,000, respectively, was recognized in compensation expense for the restricted stock awards pursuant to the RRP and the 2014 SIP. During the three and six months ended March 31, 2021, $41,000 and $84,000, respectively, was recognized in compensation expense for the restricted stock awards pursuant to the RRP and the 2014 SIP. At March 31, 2022, approximately $82,000 in additional compensation expense for unvested shares awarded related to the RRP and 2014 SIP remained unrecognized. A summary of the Company’s non-vested stock award activity for the six months ended March 31, 2022 is presented in the following table: Six Months Ended March 31, 2022 Number of Weighted Average Shares Grant Date Fair Value Non-vested stock awards at October 1, 2021 11,971 $ 18.24 Granted — — Forfeited — — Vested (7,271) 16.01 Non-vested stock awards at March 31, 2022 4,700 $ 18.46 The Company maintains the 2008 Stock Option Plan (the “Option Plan”) which authorizes the grant of stock options to officers, employees and directors of the Company to acquire shares of common stock with an exercise price at least equal to the fair market value of the common stock on the grant date. Options generally become vested and exercisable at the rate of 20% per year over five years and are generally exercisable for a period of ten years after the grant date. All options outstanding become fully vested in the event of a change of control. A total of 533,808 shares of common stock were approved for future issuance pursuant to the Option Plan. As of September 30, 2019, all of the options had been awarded under the Option Plan and no grants can be made in the future by the Option Plan even if previously awarded grants are forfeited. The 2014 SIP reserved up to 714,145 shares for issuance pursuant to options. In July 2019, the Company granted options covering 39,702 shares under the 2014 SIP. In September 2020, the Company granted 12,500 shares under the 2014 SIP. In June 2021, the Company granted 4,500 shares under the 2014 SIP. A summary of the status of the Company’s stock options under the Option Plan and the 2014 SIP as of March 31, 2022 is presented below: Six Months Ended March 31, 2022 Number of Weighted Average Shares Exercise Price Options outstanding at October 1, 2021 521,258 $ 14.23 Granted — — Exercised — — Forfeited — — Outstanding at March 31, 2022 521,258 $ 14.23 Exercisable at March 31, 2022 452,537 $ 14.14 The weighted average remaining contractual term was approximately 4.0 years for options outstanding as of March 31, 2022. The estimated fair value of options granted during fiscal 2021 was $3.91 per share. The fair value for grants made in fiscal 2021 was estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: an exercise and fair value of $13.86 per share, term of seven years, volatility rate of 34.46%, interest rate of 1.19% and a yield rate of 2.02%. During the three and six months ended March 31, 2022, $39,000 and $80,000, respectively, was recognized in compensation expense for options granted pursuant to the Option Plan and the 2014 SIP. During the three and six months ended March 31, 2021, $41,000 and $84,000, respectively, was recognized in compensation expense for options granted pursuant to the Option Plan and the 2014 SIP. At March 31, 2022, there was approximately $190,000 in additional compensation expense to be recognized for awarded options which remained outstanding and unvested at such date. The weighted average period over which this expense will be recognized is approximately 1.7 years. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Mar. 31, 2022 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
COMMITMENTS AND CONTINGENT LIABILITIES | 12. COMMITMENTS AND CONTINGENT LIABILITIES At March 31, 2022, the Company had $31.1 million in outstanding commitments to originate loans with market interest rates ranging from 4.25% to 5.00%. At September 30, 2021, the Company had $34.9 million in outstanding commitments to originate loans with market interest rates ranging from 2.99% to 5.00%. The aggregate undisbursed portion of loans-in-process amounted to $83.9 million at March 31, 2022 and $80.6 million at September 30, 2021. The Company also had commitments under unused lines of credit of $47.9 million as of March 31, 2022 and $68.1 million as of September 30, 2021 and letters of credit outstanding of $60,000 as of March 31, 2022 and $1.2 million as of September 30, 2021. Among the Company’s contingent liabilities are exposures to limited recourse arrangements with respect to the Company’s sales of whole loans and participation interests. At March 31, 2022, the exposure, which represents a portion of credit risk associated with the interests sold, amounted to $470,000. This exposure is for the life of the related loans and payables, on our proportionate share, as actual losses are incurred. The Company is involved in various legal proceedings occurring in the ordinary course of business. Management of the Company, based on discussions with litigation counsel, believes that such proceedings as are currently outstanding will not have a material adverse effect on the financial condition, operations or cash flows of the Company. However, there can be no assurance that any of the outstanding legal proceedings to which the Company is a party will not be decided adversely to the Company’s interests and not have a material adverse effect on the financial condition and operations of the Company. See Item 1 of Part II below. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 13. FAIR VALUE MEASUREMENT The fair value estimates presented herein are based on pertinent information available to management as of March 31, 2022 and September 30, 2021, respectively. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Generally accepted accounting principles used in the United States establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. The three broad levels of hierarchy are as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities; Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Those assets and liabilities as of March 31, 2022 which are measured at fair value on a recurring basis are as follows: Category Used for Fair Value Measurement Level 1 Level 2 Level 3 Total (Dollars in Thousands) Assets: Securities available for sale: U.S. Government and agency obligations $ — $ 2,613 $ — $ 2,613 State and political subdivisions — 73,587 — 73,587 Mortgage-backed securities - U.S. Government agencies — 118,291 — 118,291 Corporate bonds — 102,658 — 102,658 Equity securities 21 — — 21 Interest rate swap contracts — 1,177 — 1,177 Total $ 21 $ 298,326 $ — $ 298,347 Liabilities: Interest rate swap contracts $ — $ 1,167 $ — $ 1,167 Total $ — $ 1,167 $ — $ 1,167 Those assets and liabilities as of September 30, 2021 which are measured at fair value on a recurring basis are as follows: Category Used for Fair Value Measurement Level 1 Level 2 Level 3 Total (Dollars in Thousands) Assets: Securities available for sale: U.S. Government and agency obligations $ — $ 3,194 $ — $ 3,194 State and political subdivisions — 72,259 — 72,259 Mortgage-backed securities - U.S. Government agencies — 135,353 — 135,353 Corporate bonds — 95,141 — 95,141 Equity securities 22 — — 22 Total $ 22 $ 305,947 $ — $ 305,969 Liabilities: Interest rate swap contracts $ — $ 12,834 $ — $ 12,834 Total $ — $ 12,834 $ — $ 12,834 Certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The Company measures impaired loans and real estate owned at fair value on a non-recurring basis. Investments Mortgage-Backed and Equity Securities The fair value of investment and mortgage-backed securities is based on quoted market prices, dealer quotes, and prices obtained from independent pricing services. Interest Rate Swap Contracts The fair values of the interest rate swaps used for interest rate risk management and the risk participation agreement Impaired Loans Collateral dependent impaired loans are based on the fair value of the collateral which is based on appraisals and would be categorized as Level 2 measurement. In some cases, adjustments are made to the appraised values for various factors including the age of the appraisal, age of the comparable included in the appraisal, and known changes in the market and in the collateral. These adjustments are based upon unobservable inputs, and therefore, the fair value measurement of these assets has been categorized as a Level 3 measurement. These loans are reviewed for impairment and written down to their net realizable value by charges against the allowance for loan losses. There were no loans carried at fair value at March 31, 2022 or September 30, 2021. Real Estate Owned Once an asset is determined to be uncollectible, the underlying collateral is generally repossessed and reclassified to foreclosed real estate and repossessed assets. These repossessed assets are carried at the lower of cost or fair value of the collateral, based on independent appraisals, less cost to sell and would be categorized as Level 3 measurement. In some cases, adjustments are made to the appraised values for various factors including the age of the appraisal, the age of the comparables included in the appraisal, and known changes in the market and in the collateral. Thus the evaluations are based upon unobservable inputs, and therefore, the fair value measurement of these assets has been categorized as a Level 3 measurement. Summary of Non-Recurring Fair Value Measurements At March 31, 2022 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Other real estate owned $ — $ — $ 3,828 $ 3,828 Total $ — $ — $ 3,828 $ 3,828 At September 30, 2021 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Other real estate owned $ — $ — $ 4,109 $ 4,109 Total $ — $ — $ 4,109 $ 4,109 The following table provides information describing the valuation process used to determine nonrecurring fair value measurements categorized within level 3 of the fair value hierarchy: At March 31, 2022 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Real estate owned $ 3,828 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 2% discount At September 30, 2021 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Real estate owned $ 4,109 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 2% discount (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes 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. (3) Includes qualitative adjustments by management and estimated liquidation expenses. The fair value of financial instruments has been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is necessarily required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The estimated fair values of the Company’s financial instruments that are not required to be measured or reported at fair value were as follows at March 31, 2022 and September 30, 2021. Fair Value Measurements at Carrying Fair March 31, 2022 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Investment and mortgage-backed securities held to maturity $ 18,653 $ 18,807 $ — $ 18,807 $ — Loans receivable, net 550,502 538,780 — — 538,780 Liabilities: Certificates of deposit 211,635 216,947 216,947 — — Advances from FHLB - long-term 206,793 207,755 207,755 — — Fair Value Measurements at Carrying Fair September 30, 2021 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Investment and mortgage-backed securities held to maturity $ 20,074 $ 21,161 $ — $ 21,161 $ — Loans receivable, net 618,206 620,017 — — 620,017 Liabilities: Certificates of deposit 244,877 252,510 — — 252,510 Advances from FHLB - long-term 232,025 239,301 — — 239,301 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Mar. 31, 2022 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 14. GOODWILL AND OTHER INTANGIBLE ASSETS The Company’s goodwill and intangible assets are related to the acquisition of Polonia Bancorp, Inc. on January 1, 2017. Balance Balance October 1, Additions/ March 31, Amortization 2021 Adjustments Amortization 2022 Period (Dollars in Thousands) Goodwill $ 6,102 $ — $ — $ 6,102 Core deposit intangible 246 — (41) 205 10 years $ 6,348 $ — $ (41) $ 6,307 As of March 31, 2022, the remainder of the current fiscal year and the future fiscal periods amortization expense for the core deposit intangible is: (Dollars in Thousands) 2022 $ 37 2023 64 2024 49 2025 34 2026 18 Thereafter 3 $ 205 |
PENDING BUSINESS COMBINATION
PENDING BUSINESS COMBINATION | 6 Months Ended |
Mar. 31, 2022 | |
PENDING BUSINESS COMBINATION | |
PENDING BUSINESS COMBINATION | 15. PENDING BUSINESS COMBINATION On March 1, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Fulton Financial Corporation, a Pennsylvania corporation (“Fulton”). Pursuant to the terms and conditions set forth in the Merger Agreement, the Company will merge with and into Fulton (the “Merger”), with Fulton surviving, and Prudential Bank, the wholly-owned subsidiary of the Company, will merge with and into Fulton Bank, N.A. (“Fulton Bank”), a wholly-owned subsidiary of Fulton, with Fulton Bank as the surviving bank. The parties anticipate that the Merger will close in the third quarter of calendar year 2022. The Merger Agreement provides that, at the effective time of the Merger, each share of the Company’s common stock (the “Company Common Stock”) issued and outstanding immediately prior to the effective time of the Merger will be converted into the right to receive: (i) $3.65 in cash (the “Cash Consideration”), (ii) Fulton common stock, par value $2.50 per share (“Fulton Common Stock”), based on a fixed exchange ratio of 0.7974 (the “Exchange Ratio”), subject to adjustment in certain circumstances (the “Stock Consideration”), and (iii) cash in lieu of fractional shares based on $18.25 per share of Company Common Stock (the “Merger Consideration”). In the aggregate, approximately eighty percent (80%) of the Merger Consideration will consist of Fulton Common Stock with the remaining approximately twenty percent (20%) payable in cash. The receipt of the Stock Consideration in the Merger is expected to qualify as a tax-free exchange for the Company shareholders. In addition, as a result of the Merger, at the effective time of the Merger, (i) each outstanding option to acquire Company Common Stock, whether vested or unvested, will be canceled and will be cashed out based on the difference between $18.25 and the exercise price per Company Common Share subject to such option (less applicable taxes required to be withheld with respect to such payment), and (ii) each outstanding Company restricted stock award will become fully vested and will be exchanged for the Merger Consideration (less applicable taxes required to be withheld with respect to such vesting). Completion of the Merger is subject to certain customary conditions, including (i) approval of the Merger Agreement by the Company’s shareholders and (ii) the absence of any governmental order or law prohibiting the consummation of the Merger. The obligation of each party to consummate the Merger is also conditioned upon (i) subject to certain exceptions, the accuracy of the representations and warranties of the other party, (ii) performance in all material respects by the other party of its obligations under the Merger Agreement, (iii) receipt by each party of a tax opinion to the effect that the Merger will qualify as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended, (iv) the absence of a material adverse effect with respect to the other party since the date of the Merger Agreement and (v) the receipt of required regulatory approvals and the expiration of all applicable statutory waiting periods. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | Basis of presentation – |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements — |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments Update for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We expect to 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, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326, which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10-3. The election must be applied on an instrument-by-instrument basis and is not available for either available-for-sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings. For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position and/or results of operations. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In March 2022, the FASB issued ASU 2022-01 , Derivatives and Hedging (ASC 815): Fair Value Hedging - Portfolio Layer Method In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (ASC 326): Troubled Debt Restructurings (TDRs) and Vintage Disclosures financing receivables by credit quality indicator and class of financing receivable by year of origination. The guidance is only for entities that have adopted the amendments in Update 2016-13 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption using prospective application, including adoption in an interim period where the guidance should be applied as of the beginning of the fiscal year. This Update is not expected to have a significant impact on the Company’s financial statements. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted earnings per share | The calculated basic and diluted earnings per share are as follows: Three Months Ended March 31, 2022 2021 (Dollars in Thousands Except Per Share Data) Basic Diluted Basic Diluted Net (loss) income $ (6,515) $ (6,515) $ 1,715 $ 1,715 Weighted average common shares outstanding 7,769,095 7,769,095 7,975,683 7,975,683 Effect of CSEs — — — 14,671 Adjusted weighted average common shares used in earnings per share computation 7,769,095 7,769,095 7,975,683 7,990,354 Earnings (loss) per share $ (0.84) $ (0.84) $ 0.22 $ 0.21 Six Months Ended March 31, 2022 2021 (Dollars in Thousands, Except Share and Per Share Data) Basic Diluted Basic Diluted Net (loss) income $ (4,677) $ (4,677) $ 3,551 $ 3,551 Weighted average common shares outstanding 7,769,812 7,769,812 8,040,907 8,040,907 Effect of CSEs — — — 4,512 Adjusted weighted average common shares used in earnings per share computation 7,769,812 7,769,812 8,040,907 8,045,419 Earnings (loss) per share $ (0.60) $ (0.60) $ 0.44 $ 0.44 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS). | |
Schedule of changes in accumulated other comprehensive (loss) income | Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Total Total accumulated accumulated Unrealized gain Unrealized (loss) gain other Unrealized gain Unrealized (loss) gain other (loss) on AFS on interest rate swaps comprehensive (loss) on AFS on interest rate swaps comprehensive securities (a) (a) loss securities (a) (a) loss Beginning balance, January 1 $ 5,153 $ (5,570) $ (417) $ 12,221 $ (12,428) $ (207) Other comprehensive (loss) income before reclassification (12,536) 6,066 (6,470) (3,842) 2,500 (1,342) Total other comprehensive income (loss) (7,383) 496 (6,887) 8,379 (9,928) (1,549) Ending balance, March 31 $ (7,383) $ 496 $ (6,887) $ 8,379 $ (9,928) $ (1,549) (a) All amounts are net of tax. Amounts in parentheses indicate debits. Six Months Ended March 31, 2022 Six Months Ended March 31, 2021 Total Total accumulated accumulated Unrealized gain Unrealized (loss) gain other Unrealized gain Unrealized (loss) gain other (loss) on AFS on interest rate swaps comprehensive (loss) on AFS on interest rate swaps comprehensive securities (a) (a) loss securities (a) (a) loss Beginning balance, October 1 $ 6,098 $ (8,273) $ (2,175) $ 10,585 $ (13,528) $ (2,943) Other comprehensive (loss) income before reclassification (13,481) 8,769 (4,712) (2,206) 3,600 1,394 Total other comprehensive income (loss) (7,383) 496 (6,887) 8,379 (9,928) (1,549) Ending balance, March 31 $ (7,383) $ 496 $ (6,887) $ 8,379 $ (9,928) $ (1,549) (a) All amounts are net of tax. Amounts in parentheses indicate debits. |
INVESTMENT AND MORTGAGE-BACKE_2
INVESTMENT AND MORTGAGE-BACKED SECURITIES (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | |
Schedule of amortized cost and fair value of securities, with gross unrealized gains and losses | The amortized cost and fair value of investment and mortgage-backed securities, with gross unrealized gains and losses, are as follows: March 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 2,555 $ 58 $ — $ 2,613 State and political subdivisions 76,460 275 (3,148) 73,587 Mortgage-backed securities - U.S. government agencies 122,350 205 (4,264) 118,291 Corporate debt securities 105,130 895 (3,367) 102,658 Total debt securities available for sale $ 306,495 $ 1,433 $ (10,779) $ 297,149 Securities Held to Maturity: U.S. government and agency obligations $ 2,995 $ 85 $ (85) $ 2,995 State and political subdivisions 11,914 222 — 12,136 Mortgage-backed securities - U.S. government agencies 3,744 80 (148) 3,676 Total securities held to maturity $ 18,653 $ 387 $ (233) $ 18,807 September 30, 2021 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 3,117 $ 77 $ — $ 3,194 State and political subdivisions 70,625 1,793 (159) 72,259 Mortgage-backed securities - U.S. government agencies 131,842 4,267 (756) 135,353 Corporate debt securities 92,645 2,683 (187) 95,141 Total debt securities $ 298,229 $ 8,820 $ (1,102) $ 305,947 Securities Held to Maturity: U.S. government and agency obligations $ 1,000 $ 173 $ — $ 1,173 State and political subdivisions 14,983 727 — 15,710 Mortgage-backed securities - U.S. government agencies 4,091 211 (24) 4,278 Total securities held to maturity $ 20,074 $ 1,111 $ (24) $ 21,161 |
Schedule of gross unrealized losses and related fair values of investment securities | The following table shows the gross unrealized losses and related fair values of the Company’s investment and mortgage-backed securities, aggregated by investment category and length of time that individual securities had been in a continuous loss position as of March 31, 2022: Less than 12 months More than 12 months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in Thousands) Securities Available for Sale: State and political subdivisions $ (3,148) $ 43,976 $ — $ — $ (3,148) $ 43,976 Mortgage-backed securities -U.S. government agencies (2,241) 76,727 (2,023) 17,932 (4,264) 94,659 Corporate debt securities (3,184) 38,269 (183) 4,817 (3,367) 43,086 Total securities available for sale $ (8,573) $ 158,972 $ (2,206) $ 22,749 $ (10,779) $ 181,721 Securities Held to Maturity: U.S. government and agency obligations $ (85) $ 1,910 $ — $ — $ (85) $ 1,910 Mortgage-backed securities -U.S. government agencies (148) 2,677 — — (148) 2,677 Total securities held to maturity $ (233) $ 4,587 $ — $ — $ (233) $ 4,587 Total $ (8,806) $ 163,559 $ (2,206) $ 22,749 $ (11,012) $ 186,308 The following table shows the gross unrealized losses and related fair values of the Company’s investment and mortgage-backed securities, aggregated by investment category and length of time that individual securities had been in a continuous loss position as of September 30, 2021: Less than 12 months More than 12 months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in Thousands) Securities Available for Sale: State and political subdivisions $ (93) $ 14,383 $ (66) $ 4,417 $ (159) $ 18,800 Mortgage-backed securities - U.S. government agencies (487) 18,493 (269) 7,849 (756) 26,342 Corporate debt securities (187) 24,816 — — (187) 24,816 Total securities available for sale $ (767) $ 57,692 $ (335) $ 12,266 $ (1,102) $ 69,958 Securities Held to Maturity: Mortgage-backed securities - U.S. government agencies (24) $ 1,269 $ — $ — $ (24) $ 1,269 Total securities held to maturity $ (24) $ 1,269 $ — $ — $ (24) $ 1,269 Total $ (791) $ 58,961 $ (335) $ 12,266 $ (1,126) $ 71,227 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | March 31, 2022 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in Thousands) Due within one year $ 1,035 $ 1,036 $ 1,005 $ 1,016 Due after one through five years 5,399 5,565 54,117 53,582 Due after five through ten years 3,448 3,479 56,360 54,412 Due after ten years 5,027 5,051 72,663 69,848 Total $ 14,909 $ 15,131 $ 184,145 $ 178,858 |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
LOANS RECEIVABLE | |
Schedule of loans receivable | March 31, September 30, 2022 2021 (Dollars in Thousands) One-to-four family residential $ 183,080 $ 202,330 Multi-family residential 80,391 76,122 Commercial real estate 141,474 165,992 Construction and land development 174,970 205,413 Commercial business 62,011 57,236 Consumer 561 530 Total loans 642,487 707,623 Undisbursed portion of loans-in-process (83,890) (80,620) Deferred loan fees (173) (280) Allowance for loan losses (7,922) (8,517) Net loans $ 550,502 $ 618,206 |
Schedule of loans individually and collectively evaluated for impairment by loan segment | The following table summarizes by loan segment the balance in the allowance for loan losses and the loans individually and collectively evaluated for impairment by loan segment at March 31, 2022: One- to four- Multi-family Commercial Construction and Commercial family residential residential real estate land development business Consumer Unallocated Total (Dollars in Thousands) Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ $ — Collectively evaluated for impairment 1,600 1,159 1,990 1,507 903 18 745 7,922 Total ending allowance balance $ 1,600 $ 1,159 $ 1,990 $ 1,507 $ 903 $ 18 $ 745 $ 7,922 Loans: Individually evaluated for impairment $ 2,372 $ — $ — $ 1,963 $ — $ — $ 4,335 Collectively evaluated for impairment 180,708 80,391 141,474 173,007 62,011 561 638,152 Total loans $ 183,080 $ 80,391 $ 141,474 $ 174,970 $ 62,011 $ 561 $ 642,487 The following table summarizes by loan segment the balance in the allowance for loan losses and the loans individually and collectively evaluated for impairment by loan segment at September 30, 2021: One- to four- Multi-family Commercial Construction and Commercial family residential residential real estate land development business Consumer Unallocated Total (Dollars in Thousands) Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,665 1,051 2,220 1,968 799 15 799 8,517 Total ending allowance balance $ 1,665 $ 1,051 $ 2,220 $ 1,968 $ 799 $ 15 $ 799 $ 8,517 Loans: Individually evaluated for impairment $ 3,006 $ — $ 1,280 $ 4,093 $ — $ — $ 8,379 Collectively evaluated for impairment 199,324 76,122 164,712 201,320 57,236 530 699,244 Total loans $ 202,330 $ 76,122 $ 165,992 $ 205,413 $ 57,236 $ 530 $ 707,623 |
Schedule of impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary | The following table presents impaired loans by class as of March 31, 2022, segregated by those for which a specific allowance was required and those for which no specific allowance was required. Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ — $ — $ 2,372 $ 2,372 $ 2,721 Construction and land development — — 1,963 1,963 2,157 Total $ — $ — $ 4,335 $ 4,335 $ 4,878 The following table presents impaired loans by class as of September 30, 2021, segregated by those for which a specific allowance was required and those for which no specific allowance was required. Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ — $ — $ 3,006 $ 3,006 $ 3,304 Commercial real estate — — 1,280 1,280 1,457 Construction and land development — — 4,093 4,093 4,340 Total $ — $ — $ 8,379 $ 8,379 $ 9,101 |
Schedule of average investment in impaired loans and related interest income recognized | Three Months Ended March 31, 2022 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 2,689 $ 4 $ 10 Commercial real estate 1,280 — — Construction and land development 2,778 — — Total impaired loans $ 6,747 $ 4 $ 10 Three Months Ended March 31, 2021 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 3,281 $ 4 $ 2 Commercial real estate 1,329 — — Construction and land development 8,338 — — Total impaired loans $ 12,948 $ 4 $ 2 Six Months Ended March 31, 2022 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 2,854 $ 8 $ 15 Commercial real estate 853 — — Construction and land development 3,216 — — Total impaired loans $ 6,924 $ 8 $ 15 Six Months Ended March 31, 2021 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 3,219 $ 9 $ 2 Commercial real estate 1,358 — — Construction and land development 8,400 — — Total impaired loans $ 12,977 $ 9 $ 2 |
Schedule of classes of the loan portfolio in which a formal risk weighting system is utilized | March 31, 2022 Special Pass Mention Substandard Doubtful Total (Dollars in Thousands) One-to-four residential $ 179,502 $ 1,206 $ 2,372 $ — $ 183,080 Multi-family residential 80,391 — — — 80,391 Commercial real estate 139,455 2,019 — — 141,474 Construction and land development 173,007 — 1,963 — 174,970 Commercial business 62,011 — — — 62,011 Total $ 634,366 $ 3,225 $ 4,335 $ — $ 641,926 September 30, 2021 Special Pass Mention Substandard Doubtful Total (Dollars in Thousands) One-to-four residential $ 197,920 $ 1,404 $ 3,006 $ — $ 202,330 Multi-family residential 71,497 4,625 — — 76,122 Commercial real estate 162,657 2,055 1,280 — 165,992 Construction and land development 201,320 — 4,093 — 205,413 Commercial business 57,236 — — — 57,236 Total $ 690,630 $ 8,084 $ 8,379 $ — $ 707,093 |
Schedule of loans in which a formal risk rating system is not utilized, but loans are segregated between performing and non-performing based primarily on delinquency status | March 31, 2022 Non- Performing Performing Total (Dollars in Thousands) Consumer $ 561 $ — $ 561 Total $ 561 $ — $ 561 September 30, 2021 Non- Performing Performing Total (Dollars in Thousands) Consumer $ 530 $ — $ 530 Total $ 530 $ — $ 530 |
Schedule of loan categories of the loan portfolio summarized by the aging categories of performing and delinquent loans and nonaccrual loans | March 31, 2022 90 Days+ 30 ‑ 89 Days 90 Days + Total Total Non- Past Due Current Past Due Past Due Past Due Loans Accrual and Accruing (Dollars in Thousands) One-to-four family residential $ 181,840 $ 8 $ 1,232 $ 1,240 $ 183,080 $ 2,372 $ — Multi-family residential 80,391 — — — 80,391 — — Commercial real estate 141,474 — — — 141,474 — — Construction and land development 173,007 — 1,963 1,963 174,970 1,963 — Commercial business 62,011 — — — 62,011 — — Consumer 561 — — — 561 — — Total Loans $ 639,284 $ 8 $ 3,195 $ 3,203 $ 642,487 $ 4,335 $ — September 30, 2021 90 Days+ 30 ‑ 89 Days 90 Days + Total Total Non- Past Due Current Past Due Past Due Past Due Loans Accrual and Accruing (Dollars in Thousands) One-to-four family residential $ 199,799 $ 487 $ 2,044 $ 2,531 $ 202,330 $ 3,006 $ — Multi-family residential 76,122 — — — 76,122 — — Commercial real estate 164,712 — 1,280 1,280 165,992 1,280 — Construction and land development 201,320 — 4,093 4,093 205,413 4,093 — Commercial business 57,236 — — — 57,236 — — Consumer 493 37 — 37 530 — — Total Loans $ 699,682 $ 524 $ 7,417 $ 7,941 $ 707,623 $ 8,379 $ — |
Schedule of primary segments of the allowance for loan losses, segmented into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment. | The following tables summarize the primary segments of the allowance for loan losses. Activity in the allowance is presented for both the three and six month periods ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at December 31, 2021 $ 1,656 $ 1,053 $ 2,300 $ 1,648 $ 925 $ — $ — $ 16 $ 784 $ 8,382 Charge-offs (736) — (1,289) (1,270) (72) — — — — (3,367) Recoveries 7 — — — — — — — — 7 Provision 673 106 979 1,129 50 — — 2 (39) 2,900 ALLL balance at March 31, 2022 $ 1,600 $ 1,159 $ 1,990 $ 1,507 $ 903 $ — $ — $ 18 $ 745 $ 7,922 Six Months Ended March 31, 2022 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2021 $ 1,665 $ 1,051 $ 2,220 $ 1,968 $ 799 $ — $ — $ 15 $ 799 $ 8,517 Charge-offs (736) — (1,425) (1,270) (72) — — — — (3,503) Recoveries 8 — — — — — — — — 8 Provision 663 108 1,195 809 176 — 3 (54) 2,900 ALLL balance at March 31, 2022 $ 1,600 $ 1,159 $ 1,990 $ 1,507 $ 903 $ — $ — $ 18 $ 745 $ 7,922 Three Months Ended March 31, 2021 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at December 31, 2019 $ 2,011 $ 457 $ 1,935 $ 2,828 $ 319 $ — $ 3 $ 6 $ 759 $ 8,318 Charge-offs — — — — — — — — — — Recoveries — — — — — — — 35 — 35 Provision (428) 263 34 (118) 261 — — (36) 24 — ALLL balance at March 31, 2021 $ 1,583 $ 720 $ 1,969 $ 2,710 $ 580 $ — $ 3 $ 5 $ 783 $ 8,353 Six Months Ended March 31, 2021 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2020 $ 1,877 $ 460 $ 1,989 $ 2,888 $ 194 $ 89 $ 3 $ 6 $ 797 $ 8,303 Charge-offs — — — — — — — — — — Recoveries 1 — — — 14 — — 35 — 50 Provision (295) 260 (20) (178) 372 (89) — (36) (14) — ALLL balance at March 31, 2021 $ 1,583 $ 720 $ 1,969 $ 2,710 $ 580 $ — $ 3 $ 5 $ 783 $ 8,353 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
DEPOSITS. | |
Schedule of major classifications of deposits | March 31, September 30, 2022 2021 Amount Percent Amount Percent (Dollars in Thousands) Non-interest-bearing checking accounts $ 35,590 5.3 % $ 37,409 5.3 % Interest-bearing checking accounts 82,042 12.2 % 87,752 12.3 % Money market deposit accounts 111,751 16.7 % 111,488 15.7 % Passbook, club and statement savings 229,758 34.2 % 229,989 32.3 % Certificates maturing in six months or less 123,757 18.5 % 143,767 20.2 % Certificates maturing in more than six months 87,878 13.1 % 101,110 14.2 % Total $ 670,776 100.0 % $ 711,515 100.0 % |
ADVANCES FROM FEDERAL HOME LO_2
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | |
Schedule of collateral agreement with the FHLB | Lomg-term FHLB advances: Maturity range Weighted average Stated interest rate range March 31, September 30, Description from to interest rate from to 2022 2021 (Dollars in Thousands) Fixed Rate - Amortizing 1 ‑ Oct ‑ 21 30 ‑ Sep ‑ 22 2.99 % 2.94 % 3.05 % $ 872 $ 2,227 Fixed Rate - Amortizing 1 ‑ Oct ‑ 22 30 ‑ Sep ‑ 23 2.89 % 1.94 % 3.11 % 2,675 3,551 Total 2.92 % 3,547 5,778 Fixed Rate - Advances 1 ‑ Oct ‑ 21 30 ‑ Sep ‑ 22 2.22 % 1.94 % 2.33 % 40,249 63,250 Fixed Rate - Advances 1 ‑ Oct ‑ 22 30 ‑ Sep ‑ 23 2.52 % 2.00 % 3.22 % 94,999 94,999 Fixed Rate - Advances 1 ‑ Oct ‑ 23 30 ‑ Sep ‑ 24 2.88 % 2.38 % 3.20 % 67,998 67,998 Total 2.58 % 203,246 226,247 2.59 % Total $ 206,793 $ 232,025 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
DERIVATIVES | |
Schedule of interest rate swap agreements and the terms | Below is a summary of the interest rate swap agreements and their terms as of March 31, 2022. 2022 Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Gain (Loss) (Dollars in Thousands) State and political subdivisions $ 21,570 3.06 % 3.07 % 3 Mth Libor 1-Feb-27 1-May-28 $ (624) Commercial loans 23,656 4.10 % 5.74 % 1 Mth Libor +225 to 276 bp 13-Jun-25 1-Aug-26 — 30 day wholesale funding 90,000 1.36 % 2.70 % 1 Mth Libor 15-Feb-24 12-Jun-26 1,177 90 day wholesale funding 135,000 2.51 % 2.78 % 3 Mth Libor 11-Jan-24 27-Mar-24 (543) $ 10 The increase in the value of the swap agreements during the 2022 periods was due to the expectation of future rate increases. Below is a summary of the interest rate swap agreements and their terms as of September 30, 2021. 2021 Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Loss (Dollars in T housands) State and political subdivisions $ 21,570 3.06 % 3.07 % 3 Mth Libor 1-Feb-27 1-May-28 $ (2,365) Commercial loans 23,656 4.10 % 5.74 % 1 Mth Libor +225 to 276 bp 13-Jun-25 1-Aug-26 — 30 day wholesale funding 90,000 1.36 % 2.70 % 1 Mth Libor 15-Feb-24 12-Jun-26 (3,495) 90 day wholesale funding 135,000 2.51 % 2.78 % 3 Mth Libor 11-Jan-24 27-Mar-24 (6,974) $ (12,834) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
INCOME TAXES | |
Schedule of deferred income taxes | March 31, September 30, 2022 2021 (Dollars in Thousands) Deferred tax assets: Allowance for loan losses $ 1,591 $ 1,716 Nonaccrual interest 238 395 Accrued vacation 14 14 Capital loss carryforward 4 4 Other real estate owned 67 — Split dollar life insurance 9 9 Post-retirement benefits 65 67 Unrealized losses on available for sale securities 1,966 — Unrealized losses on interest rate swaps — 2,199 Deferred compensation 748 767 Net operating loss 1,836 — Goodwill 41 47 Lease liability 236 256 Other 23 79 Employee benefit plans 210 242 Total deferred tax assets 7,048 5,795 Valuation allowance (4) (4) Total deferred tax assets, net of valuation allowance 7,044 5,791 Deferred tax liabilities: Property 167 127 Right of Use 214 233 Realized gain on equity securities 3 3 Unrealized gains on available for sale securities — 1,621 Unrealized gains on interest rate swaps 132 — Purchase accounting adjustments 423 394 Deferred loan fees 377 392 Total deferred tax liabilities 1,316 2,770 Net deferred tax assets $ 5,728 $ 3,021 |
STOCK COMPENSATION PLANS (Table
STOCK COMPENSATION PLANS (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
STOCK COMPENSATION PLANS | |
Schedule of summary of the non-vested stock award activity | Six Months Ended March 31, 2022 Number of Weighted Average Shares Grant Date Fair Value Non-vested stock awards at October 1, 2021 11,971 $ 18.24 Granted — — Forfeited — — Vested (7,271) 16.01 Non-vested stock awards at March 31, 2022 4,700 $ 18.46 |
Schedule of summary of the status of the company' stock options under the stock option plan | Six Months Ended March 31, 2022 Number of Weighted Average Shares Exercise Price Options outstanding at October 1, 2021 521,258 $ 14.23 Granted — — Exercised — — Forfeited — — Outstanding at March 31, 2022 521,258 $ 14.23 Exercisable at March 31, 2022 452,537 $ 14.14 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE MEASUREMENT | |
Schedule of assets measured at fair value on recurring basis | Those assets and liabilities as of March 31, 2022 which are measured at fair value on a recurring basis are as follows: Category Used for Fair Value Measurement Level 1 Level 2 Level 3 Total (Dollars in Thousands) Assets: Securities available for sale: U.S. Government and agency obligations $ — $ 2,613 $ — $ 2,613 State and political subdivisions — 73,587 — 73,587 Mortgage-backed securities - U.S. Government agencies — 118,291 — 118,291 Corporate bonds — 102,658 — 102,658 Equity securities 21 — — 21 Interest rate swap contracts — 1,177 — 1,177 Total $ 21 $ 298,326 $ — $ 298,347 Liabilities: Interest rate swap contracts $ — $ 1,167 $ — $ 1,167 Total $ — $ 1,167 $ — $ 1,167 Those assets and liabilities as of September 30, 2021 which are measured at fair value on a recurring basis are as follows: Category Used for Fair Value Measurement Level 1 Level 2 Level 3 Total (Dollars in Thousands) Assets: Securities available for sale: U.S. Government and agency obligations $ — $ 3,194 $ — $ 3,194 State and political subdivisions — 72,259 — 72,259 Mortgage-backed securities - U.S. Government agencies — 135,353 — 135,353 Corporate bonds — 95,141 — 95,141 Equity securities 22 — — 22 Total $ 22 $ 305,947 $ — $ 305,969 Liabilities: Interest rate swap contracts $ — $ 12,834 $ — $ 12,834 Total $ — $ 12,834 $ — $ 12,834 |
Schedule of summary of non-recurring fair value measurements | At March 31, 2022 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Other real estate owned $ — $ — $ 3,828 $ 3,828 Total $ — $ — $ 3,828 $ 3,828 At September 30, 2021 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Other real estate owned $ — $ — $ 4,109 $ 4,109 Total $ — $ — $ 4,109 $ 4,109 |
Schedule of nonrecurring fair value measurements categorized within level 3 of the fair value hierarchy | At March 31, 2022 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Real estate owned $ 3,828 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 2% discount At September 30, 2021 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Real estate owned $ 4,109 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 2% discount (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes 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. (3) Includes qualitative adjustments by management and estimated liquidation expenses. |
Schedule of the estimated fair value amounts | Fair Value Measurements at Carrying Fair March 31, 2022 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Investment and mortgage-backed securities held to maturity $ 18,653 $ 18,807 $ — $ 18,807 $ — Loans receivable, net 550,502 538,780 — — 538,780 Liabilities: Certificates of deposit 211,635 216,947 216,947 — — Advances from FHLB - long-term 206,793 207,755 207,755 — — Fair Value Measurements at Carrying Fair September 30, 2021 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Investment and mortgage-backed securities held to maturity $ 20,074 $ 21,161 $ — $ 21,161 $ — Loans receivable, net 618,206 620,017 — — 620,017 Liabilities: Certificates of deposit 244,877 252,510 — — 252,510 Advances from FHLB - long-term 232,025 239,301 — — 239,301 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of goodwill and intangible assets are related to the acquisition of Polonia Bancorp | Balance Balance October 1, Additions/ March 31, Amortization 2021 Adjustments Amortization 2022 Period (Dollars in Thousands) Goodwill $ 6,102 $ — $ — $ 6,102 Core deposit intangible 246 — (41) 205 10 years $ 6,348 $ — $ (41) $ 6,307 |
Schedule of future fiscal periods amortization expense for core deposit intangible | (Dollars in Thousands) 2022 $ 37 2023 64 2024 49 2025 34 2026 18 Thereafter 3 $ 205 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended |
Mar. 31, 2022item | |
Significant Accounting Policies [Line Items] | |
Number of full service branch offices | 9 |
Number of banking offices | 10 |
Philadelphia (Philadelphia County) | |
Significant Accounting Policies [Line Items] | |
Number of full service branch offices | 8 |
PENNSYLVANIA | |
Significant Accounting Policies [Line Items] | |
Number of full service branch offices | 1 |
Huntingdon Valley, Montgomery County | |
Significant Accounting Policies [Line Items] | |
Number of full service branch offices | 1 |
EARNINGS PER SHARE - Calculated
EARNINGS PER SHARE - Calculated basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings per share - basic | ||||
Net income | $ (6,515) | $ 1,715 | $ (4,677) | $ 3,551 |
Weighted average common shares outstanding - basic | 7,769,095 | 7,975,683 | 7,769,812 | 8,040,907 |
Effect of CSEs - basic | 0 | 0 | ||
Adjusted weighted average common shares used in earnings per share computation - basic | 7,769,095 | 7,975,683 | 7,769,812 | 8,040,907 |
Earnings per share - basic (in dollars per share) | $ (0.84) | $ 0.22 | $ (0.60) | $ 0.44 |
Earnings per share - diluted | ||||
Net income | $ (6,515) | $ 1,715 | $ (4,677) | $ 3,551 |
Weighted average shares outstanding - diluted | 7,769,095 | 7,975,683 | 7,769,812 | 8,040,907 |
Effect of CSEs - diluted | 14,671 | 4,512 | ||
Adjusted weighted average shares used in earnings per share computation - diluted | 7,769,095 | 7,990,354 | 7,769,812 | 8,045,419 |
Earnings per share - diluted (in dollars per share) | $ (0.84) | $ 0.21 | $ (0.60) | $ 0.44 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares | Mar. 31, 2022 | Mar. 31, 2021 |
EARNINGS PER SHARE | ||
Adjusted weighted average shares of common stock used in diluted earnings per share computation | 299,728 | 267,728 |
Adjusted weighted average shares of common stock having exercise prices less than the current market value and are considered anti-dilutive | 221,530 | 249,030 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in accumulated other comprehensive (loss) income by component net of tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ (2,175) | |||
Total other comprehensive (loss) gain | $ (6,470) | $ (1,342) | (4,712) | $ 1,394 |
Ending Balance | (6,887) | (6,887) | ||
Total accumulated other comprehensive income (loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (417) | (207) | (2,175) | (2,943) |
Other comprehensive (loss) income before reclassification | (6,470) | (1,342) | (4,712) | 1,394 |
Total other comprehensive (loss) gain | (6,887) | (1,549) | (6,887) | (1,549) |
Ending Balance | (6,887) | (1,549) | (6,887) | (1,549) |
Unrealized gain (loss) on AFS securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 5,153 | 6,098 | 10,585 | |
Other comprehensive (loss) income before reclassification | (12,536) | (13,481) | (2,206) | |
Total other comprehensive (loss) gain | (7,383) | (7,383) | 8,379 | |
Ending Balance | (7,383) | 8,379 | (7,383) | 8,379 |
Swaps | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (5,570) | |||
Other comprehensive (loss) income before reclassification | 6,066 | |||
Total other comprehensive (loss) gain | 496 | |||
Ending Balance | 496 | 496 | ||
Unrealized gain (loss) on interest rate swaps | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (12,428) | (8,273) | (13,528) | |
Other comprehensive (loss) income before reclassification | 2,500 | 8,769 | 3,600 | |
Total other comprehensive (loss) gain | (9,928) | 496 | (9,928) | |
Ending Balance | $ 496 | (9,928) | $ 496 | (9,928) |
Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 12,221 | |||
Other comprehensive (loss) income before reclassification | (3,842) | |||
Total other comprehensive (loss) gain | 8,379 | |||
Ending Balance | $ 8,379 | $ 8,379 |
INVESTMENT AND MORTGAGE-BACKE_3
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of investment and mortgage-backed securities, with gross unrealized gains and losses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Securities Available for Sale: | ||
Amortized Cost | $ 306,495 | |
Gross Unrealized Gains | 1,433 | |
Gross Unrealized Losses | (10,779) | |
Fair Value | 297,149 | $ 305,947 |
U.S. Government and agency obligations | ||
Securities Available for Sale: | ||
Amortized Cost | 2,555 | 3,117 |
Gross Unrealized Gains | 58 | 77 |
Gross Unrealized Losses | 0 | |
Fair Value | 2,613 | 3,194 |
State and political subdivisions | ||
Securities Available for Sale: | ||
Amortized Cost | 76,460 | 70,625 |
Gross Unrealized Gains | 275 | 1,793 |
Gross Unrealized Losses | (3,148) | (159) |
Fair Value | 73,587 | 72,259 |
Mortgage-Backed Securities | ||
Securities Available for Sale: | ||
Amortized Cost | 122,350 | 131,842 |
Gross Unrealized Gains | 205 | 4,267 |
Gross Unrealized Losses | (4,264) | (756) |
Fair Value | 118,291 | 135,353 |
Corporate debt securities | ||
Securities Available for Sale: | ||
Amortized Cost | 105,130 | 92,645 |
Gross Unrealized Gains | 895 | 2,683 |
Gross Unrealized Losses | (3,367) | (187) |
Fair Value | $ 102,658 | 95,141 |
Total debt securities available for sale | ||
Securities Available for Sale: | ||
Amortized Cost | 298,229 | |
Gross Unrealized Gains | 8,820 | |
Gross Unrealized Losses | (1,102) | |
Fair Value | $ 305,947 |
INVESTMENT AND MORTGAGE-BACKE_4
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of investment and mortgage-backed securities, with gross unrealized gains and losses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Securities Held to Maturity: | ||
Amortized Cost | $ 18,653 | $ 20,074 |
Gross Unrealized Gains | 387 | 1,111 |
Gross unrealized losses | (233) | (24) |
Fair value | 18,807 | 21,161 |
U.S. Government and agency obligations | ||
Securities Held to Maturity: | ||
Amortized Cost | 2,995 | 1,000 |
Gross Unrealized Gains | 85 | 173 |
Gross unrealized losses | (85) | |
Fair value | 2,995 | 1,173 |
Mortgage-Backed Securities | ||
Securities Held to Maturity: | ||
Amortized Cost | 3,744 | 4,091 |
Gross Unrealized Gains | 80 | 211 |
Gross unrealized losses | (148) | (24) |
Fair value | 3,676 | 4,278 |
State and political subdivisions | ||
Securities Held to Maturity: | ||
Amortized Cost | 11,914 | 14,983 |
Gross Unrealized Gains | 222 | 727 |
Gross unrealized losses | 0 | |
Fair value | $ 12,136 | $ 15,710 |
INVESTMENT AND MORTGAGE-BACKE_5
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Gross unrealized losses and related fair values of investment securities, aggregated by investment category and length of time (Details) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | $ (8,573,000) | $ (767,000) |
Less than 12 months - Fair value | 158,972,000 | 57,692,000 |
More than 12 months - Gross Unrealized Losses | (2,206,000) | (335,000) |
More than 12 months - Fair value | 22,749,000 | 12,266,000 |
Total - Gross Unrealized Losses | (10,779,000) | (1,102,000) |
Total - Fair Value | 181,721,000 | 69,958,000 |
State and political subdivisions | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (3,148,000) | (93,000) |
Less than 12 months - Fair value | 43,976,000 | 14,383,000 |
More than 12 months - Gross Unrealized Losses | (66,000) | |
More than 12 months - Fair value | 4,417,000 | |
Total - Gross Unrealized Losses | (3,148,000) | (159,000) |
Total - Fair Value | 43,976,000 | 18,800,000 |
Mortgage-Backed Securities | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (2,241,000) | (487,000) |
Less than 12 months - Fair value | 76,727,000 | 18,493,000 |
More than 12 months - Gross Unrealized Losses | (2,023,000) | (269,000) |
More than 12 months - Fair value | 17,932,000 | 7,849,000 |
Total - Gross Unrealized Losses | (4,264,000) | (756,000) |
Total - Fair Value | 94,659,000 | 26,342,000 |
Corporate debt securities | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (3,184,000) | (187,000) |
Less than 12 months - Fair value | 38,269,000 | 24,816,000 |
More than 12 months - Gross Unrealized Losses | (183,000) | |
More than 12 months - Fair value | 4,817,000 | |
Total - Gross Unrealized Losses | (3,367,000) | (187,000) |
Total - Fair Value | $ 43,086,000 | $ 24,816,000 |
INVESTMENT AND MORTGAGE-BACKE_6
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Gross unrealized losses and related fair values of investment securities, aggregated by investment category and length of time (Details) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | $ (233,000) | $ (24,000) |
Less than 12 Months, Fair Value | 4,587,000 | 1,269,000 |
Total - Gross Unrealized Losses | (233,000) | (24,000) |
Total - Fair Value | 4,587,000 | 1,269,000 |
U.S. Government and agency obligations | ||
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | (85,000) | |
Less than 12 Months, Fair Value | 1,910,000 | |
Total - Gross Unrealized Losses | (85,000) | |
Total - Fair Value | 1,910,000 | |
Mortgage-Backed Securities | ||
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | (148,000) | (24,000) |
Less than 12 Months, Fair Value | 2,677,000 | 1,269,000 |
Total - Gross Unrealized Losses | (148,000) | (24,000) |
Total - Fair Value | $ 2,677,000 | $ 1,269,000 |
INVESTMENT AND MORTGAGE-BACKE_7
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Gross unrealized losses and related fair values of investment securities, aggregated by investment category and length of time (Details) - USD ($) | Mar. 31, 2022 | Sep. 30, 2021 |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | ||
Less than 12 months - Gross Unrealized Losses | $ (8,806,000) | $ (791,000) |
Less than 12 Months - Fair Value | 163,559,000 | 58,961,000 |
More than 12 months - Gross Unrealized Losses | (2,206,000) | (335,000) |
More than 12 Months - Fair Value | 22,749,000 | 12,266,000 |
Total - Gross Unrealized Losses | (11,012,000) | (1,126,000) |
Total - Fair Value | $ 186,308,000 | $ 71,227,000 |
INVESTMENT AND MORTGAGE-BACKE_8
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of debt securities, by contractual maturity (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Available for Sale, Amortized Cost | |
Due within one year | $ 1,005 |
Due after one through five years | 54,117 |
Due after five through ten years | 56,360 |
Due after ten years | 72,663 |
Total | 184,145 |
Available for Sale, Fair Value | |
Due within one year | 1,016 |
Due after one through five years | 53,582 |
Due after five through ten years | 54,412 |
Due after ten years | 69,848 |
Total | $ 178,858 |
INVESTMENT AND MORTGAGE-BACKE_9
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of debt securities, by contractual maturity (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Held to Maturity - Amortized Cost | |
Due within one year | $ 1,035 |
Due after one through five years | 5,399 |
Due after five through ten years | 3,448 |
Due after ten years | 5,027 |
Total | 14,909 |
Held to Maturity - Fair Value | |
Due within one year | 1,036 |
Due after one through five years | 5,565 |
Due after five through ten years | 3,479 |
Due after ten years | 5,051 |
Total | $ 15,131 |
INVESTMENT AND MORTGAGE-BACK_10
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022USD ($)security | Mar. 31, 2021USD ($)security | Mar. 31, 2022USD ($)security | Mar. 31, 2021USD ($)security | Dec. 31, 2021security | Sep. 30, 2021USD ($) | |
Marketable Securities [Line Items] | ||||||
Securities with a fair value in safekeeping account at the FHLB | $ 101,300,000 | $ 101,300,000 | ||||
Number of debt securities | security | 0 | 0 | 0 | 0 | ||
Aggregate Amount | $ 8,573,000 | $ 8,573,000 | $ 767,000 | |||
Gain (loss) on equity securities | (1,000) | $ (7,000) | (1,000) | $ 3,000 | ||
Required to hold securities for its borrowings | 16,700,000 | 16,700,000 | ||||
Excess securities not restricted and could be sold or transferred | 84,600,000 | 84,600,000 | ||||
Gross unrealized loss | $ 10,779,000 | $ 10,779,000 | 1,102,000 | |||
U.S. Government and agency obligations | ||||||
Marketable Securities [Line Items] | ||||||
Number of investment securities in debt obligations in the category of loss position less than 12 months held by company | security | 1 | |||||
Number of investment securities in debt obligations in the category of loss position more than 12 months held by company | security | 0 | |||||
Mortgage-Backed Securities | ||||||
Marketable Securities [Line Items] | ||||||
Number of investment securities in debt obligations in the category of loss position less than 12 months held by company | security | 97 | 97 | ||||
Number of investment securities in debt obligations in the category of loss position more than 12 months held by company | security | 7 | 7 | ||||
Aggregate Amount | $ 2,241,000 | $ 2,241,000 | 487,000 | |||
Gross unrealized loss | $ 4,264,000 | $ 4,264,000 | 756,000 | |||
Corporate debt securities | ||||||
Marketable Securities [Line Items] | ||||||
Number of investment securities in debt obligations in the category of loss position less than 12 months held by company | security | 10 | 10 | ||||
Number of investment securities in debt obligations in the category of loss position more than 12 months held by company | security | 1 | 1 | ||||
Aggregate Amount | $ 3,184,000 | $ 3,184,000 | 187,000 | |||
Gross unrealized loss | $ 3,367,000 | $ 3,367,000 | 187,000 | |||
State and political subdivisions | ||||||
Marketable Securities [Line Items] | ||||||
Number of investment securities in debt obligations in the category of loss position less than 12 months held by company | security | 20 | 20 | ||||
Number of investment securities in debt obligations in the category of loss position more than 12 months held by company | security | 0 | 0 | ||||
Aggregate Amount | $ 3,148,000 | $ 3,148,000 | 93,000 | |||
Gross unrealized loss | $ 3,148,000 | $ 3,148,000 | $ 159,000 |
LOANS RECEIVABLE (Details)
LOANS RECEIVABLE (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 642,487 | $ 707,623 | ||||
Undisbursed portion of loans-in-process | (83,890) | (80,620) | ||||
Deferred loan fees | (173) | (280) | ||||
Allowance for loan losses | (7,922) | $ (8,382) | (8,517) | $ (8,353) | $ (8,318) | $ (8,303) |
Net loans | 550,502 | 618,206 | ||||
One-to-four family residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 183,080 | 202,330 | ||||
Allowance for loan losses | (1,600) | (1,656) | (1,665) | (1,583) | (2,011) | (1,877) |
Multi-family residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 80,391 | 76,122 | ||||
Allowance for loan losses | (1,159) | (1,053) | (1,051) | (720) | (457) | (460) |
Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 141,474 | 165,992 | ||||
Allowance for loan losses | (1,990) | (2,300) | (2,220) | (1,969) | (1,935) | (1,989) |
Construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 174,970 | 205,413 | ||||
Allowance for loan losses | (1,507) | (1,648) | (1,968) | (2,710) | (2,828) | (2,888) |
Commercial business | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 62,011 | 57,236 | ||||
Allowance for loan losses | (903) | (925) | (799) | (580) | (319) | (194) |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 561 | 530 | ||||
Allowance for loan losses | $ (18) | $ (16) | $ (15) | $ (5) | $ (6) | $ (6) |
LOANS RECEIVABLE - Summary of l
LOANS RECEIVABLE - Summary of loans individually and collectively evaluated for impairment by loan segment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Loans: | ||||||
Individually evaluated for impairment | $ 4,335 | $ 8,379 | ||||
Collectively evaluated for impairment | 638,152 | 699,244 | ||||
Total loans | 642,487 | 707,623 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 7,922 | 8,517 | ||||
Total ending allowance balance | 7,922 | $ 8,382 | 8,517 | $ 8,353 | $ 8,318 | $ 8,303 |
One-to-four family residential | ||||||
Loans: | ||||||
Individually evaluated for impairment | 2,372 | 3,006 | ||||
Collectively evaluated for impairment | 180,708 | 199,324 | ||||
Total loans | 183,080 | 202,330 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,600 | 1,665 | ||||
Total ending allowance balance | 1,600 | 1,656 | 1,665 | 1,583 | 2,011 | 1,877 |
Multi-family residential | ||||||
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 80,391 | 76,122 | ||||
Total loans | 80,391 | 76,122 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,159 | 1,051 | ||||
Total ending allowance balance | 1,159 | 1,053 | 1,051 | 720 | 457 | 460 |
Commercial real estate | ||||||
Loans: | ||||||
Individually evaluated for impairment | 0 | 1,280 | ||||
Collectively evaluated for impairment | 141,474 | 164,712 | ||||
Total loans | 141,474 | 165,992 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,990 | 2,220 | ||||
Total ending allowance balance | 1,990 | 2,300 | 2,220 | 1,969 | 1,935 | 1,989 |
Construction and land development | ||||||
Loans: | ||||||
Individually evaluated for impairment | 1,963 | 4,093 | ||||
Collectively evaluated for impairment | 173,007 | 201,320 | ||||
Total loans | 174,970 | 205,413 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,507 | 1,968 | ||||
Total ending allowance balance | 1,507 | 1,648 | 1,968 | 2,710 | 2,828 | 2,888 |
Commercial business | ||||||
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 62,011 | 57,236 | ||||
Total loans | 62,011 | 57,236 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 903 | 799 | ||||
Total ending allowance balance | 903 | 925 | 799 | 580 | 319 | 194 |
Consumer | ||||||
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 561 | 530 | ||||
Total loans | 561 | 530 | ||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 18 | 15 | ||||
Total ending allowance balance | 18 | 16 | 15 | 5 | 6 | 6 |
Unallocated | ||||||
Loans: | ||||||
Individually evaluated for impairment | 0 | |||||
Collectively evaluated for impairment | 745 | 799 | ||||
Total ending allowance balance | $ 745 | $ 784 | $ 799 | $ 783 | $ 759 | $ 797 |
LOANS RECEIVABLE - Impaired loa
LOANS RECEIVABLE - Impaired loans by class, segregated by those for which specific allowance was required and those for which specific allowance was not necessary (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | $ 0 | $ 0 |
Impaired Loans with Specific Allowance - Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance - Recorded Investment | 4,335 | 8,379 |
Total Impaired Loans - Recorded Investment | 4,335 | 8,379 |
Total impaired loans - Unpaid Principal Balance | 4,878 | 9,101 |
One-to-four family residential | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance - Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance - Recorded Investment | 2,372 | 3,006 |
Total Impaired Loans - Recorded Investment | 2,372 | 3,006 |
Total impaired loans - Unpaid Principal Balance | 2,721 | 3,304 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | 0 | |
Impaired Loans with Specific Allowance - Related Allowance | 0 | |
Impaired Loans with No Specific Allowance - Recorded Investment | 1,280 | |
Total Impaired Loans - Recorded Investment | 1,280 | |
Total impaired loans - Unpaid Principal Balance | 1,457 | |
Construction and land development | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance - Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance - Recorded Investment | 1,963 | 4,093 |
Total Impaired Loans - Recorded Investment | 1,963 | 4,093 |
Total impaired loans - Unpaid Principal Balance | $ 2,157 | $ 4,340 |
LOANS RECEIVABLE - Average reco
LOANS RECEIVABLE - Average recorded investment in impaired loans and related interest income recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | $ 6,747 | $ 12,948 | $ 6,924 | $ 12,977 |
Income Recognized on Accrual Basis | 4 | 4 | 8 | 9 |
Income Recognized on Cash Basis | 10 | 2 | 15 | 2 |
One-to-four family residential | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 2,689 | 3,281 | 2,854 | 3,219 |
Income Recognized on Accrual Basis | 4 | 4 | 8 | 9 |
Income Recognized on Cash Basis | 10 | 2 | 15 | 2 |
Commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 1,280 | 1,329 | 853 | 1,358 |
Income Recognized on Accrual Basis | 0 | 0 | ||
Income Recognized on Cash Basis | 0 | 0 | ||
Construction and land development | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 2,778 | 8,338 | $ 3,216 | $ 8,400 |
Income Recognized on Accrual Basis | 0 | 0 | ||
Income Recognized on Cash Basis | $ 0 | $ 0 |
LOANS RECEIVABLE - Summary of c
LOANS RECEIVABLE - Summary of classes of loan portfolio in which formal risk weighting system is utilized (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 642,487 | $ 707,623 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 183,080 | 202,330 |
Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 80,391 | 76,122 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 141,474 | 165,992 |
Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 174,970 | 205,413 |
Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 62,011 | 57,236 |
Risk Rating System | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 641,926 | 707,093 |
Risk Rating System | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 183,080 | 202,330 |
Risk Rating System | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 80,391 | 76,122 |
Risk Rating System | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 141,474 | 165,992 |
Risk Rating System | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 174,970 | 205,413 |
Risk Rating System | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 62,011 | 57,236 |
Risk Rating System | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 634,366 | |
Risk Rating System | Pass | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 179,502 | |
Risk Rating System | Pass | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 80,391 | |
Risk Rating System | Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 139,455 | |
Risk Rating System | Pass | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 173,007 | |
Risk Rating System | Pass | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 62,011 | |
Risk Rating System | Special Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 690,630 | |
Risk Rating System | Special Pass | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 197,920 | |
Risk Rating System | Special Pass | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 71,497 | |
Risk Rating System | Special Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 162,657 | |
Risk Rating System | Special Pass | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 201,320 | |
Risk Rating System | Special Pass | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 57,236 | |
Risk Rating System | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,225 | |
Risk Rating System | Special Mention | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,206 | |
Risk Rating System | Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,019 | |
Risk Rating System | Total Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,084 | |
Risk Rating System | Total Mention | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,404 | |
Risk Rating System | Total Mention | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,625 | |
Risk Rating System | Total Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,055 | |
Risk Rating System | Total Mention | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Total Mention | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,335 | 8,379 |
Risk Rating System | Substandard | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,372 | 3,006 |
Risk Rating System | Substandard | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,280 | |
Risk Rating System | Substandard | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 1,963 | 4,093 |
Risk Rating System | Substandard | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Doubtful | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Doubtful | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Doubtful | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Doubtful | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 0 |
LOANS RECEIVABLE - Loans in whi
LOANS RECEIVABLE - Loans in which formal risk rating system is not utilized, but loans are segregated between performing and non-performing based primarily on delinquency status (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 642,487 | $ 707,623 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 561 | 530 |
Non Risk Rating System | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 561 | 530 |
Non Risk Rating System | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 561 | 530 |
Non Risk Rating System | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 561 | 530 |
Non Risk Rating System | Performing | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 561 | $ 530 |
Non Risk Rating System | Non-performing assets | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Non Risk Rating System | Non-performing assets | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 0 |
LOANS RECEIVABLE - Loan categor
LOANS RECEIVABLE - Loan categories of loan portfolio summarized by aging categories of performing loans and nonaccrual loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 639,284 | $ 699,682 |
Past Due | 3,203 | 7,941 |
Total Loans | 642,487 | 707,623 |
Non- Accrual | 4,335 | 8,379 |
90 Days+ Past Due and Accruing | 0 | 0 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 8 | 524 |
Over 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3,195 | 7,417 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 181,840 | 199,799 |
Past Due | 1,240 | 2,531 |
Total Loans | 183,080 | 202,330 |
Non- Accrual | 2,372 | 3,006 |
90 Days+ Past Due and Accruing | 0 | 0 |
One-to-four family residential | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 8 | 487 |
One-to-four family residential | Over 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,232 | 2,044 |
Multi-family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 80,391 | 76,122 |
Past Due | 0 | 0 |
Total Loans | 80,391 | 76,122 |
Non- Accrual | 0 | 0 |
90 Days+ Past Due and Accruing | 0 | 0 |
Multi-family residential | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Multi-family residential | Over 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 141,474 | 164,712 |
Past Due | 0 | 1,280 |
Total Loans | 141,474 | 165,992 |
Non- Accrual | 0 | 1,280 |
90 Days+ Past Due and Accruing | 0 | 0 |
Commercial real estate | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | Over 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 1,280 |
Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 173,007 | 201,320 |
Past Due | 1,963 | 4,093 |
Total Loans | 174,970 | 205,413 |
Non- Accrual | 1,963 | 4,093 |
90 Days+ Past Due and Accruing | 0 | 0 |
Construction and land development | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Construction and land development | Over 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,963 | 4,093 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 62,011 | 57,236 |
Past Due | 0 | 0 |
Total Loans | 62,011 | 57,236 |
Non- Accrual | 0 | 0 |
90 Days+ Past Due and Accruing | 0 | 0 |
Commercial business | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial business | Over 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 561 | 493 |
Past Due | 0 | 37 |
Total Loans | 561 | 530 |
Non- Accrual | 0 | 0 |
90 Days+ Past Due and Accruing | 0 | 0 |
Consumer | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 37 |
Consumer | Over 90 days past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
LOANS RECEIVABLE - Activity in
LOANS RECEIVABLE - Activity in allowance (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | $ 8,382,000 | $ 8,318,000 | $ 8,517,000 | $ 8,303,000 |
Charge-offs | (3,367,000) | (3,503,000) | ||
Recoveries | 7,000 | 35,000 | 8,000 | 50,000 |
Provision | 2,900,000 | 0 | 2,900,000 | 0 |
ALLL balance | 7,922,000 | 8,353,000 | 7,922,000 | 8,353,000 |
One-to-four family residential | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 1,656,000 | 2,011,000 | 1,665,000 | 1,877,000 |
Charge-offs | (736,000) | (736,000) | ||
Recoveries | 7,000 | 8,000 | 1,000 | |
Provision | 673,000 | (428,000) | 663,000 | (295,000) |
ALLL balance | 1,600,000 | 1,583,000 | 1,600,000 | 1,583,000 |
Multi-family residential | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 1,053,000 | 457,000 | 1,051,000 | 460,000 |
Provision | 106,000 | 263,000 | 108,000 | 260,000 |
ALLL balance | 1,159,000 | 720,000 | 1,159,000 | 720,000 |
Commercial real estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 2,300,000 | 1,935,000 | 2,220,000 | 1,989,000 |
Charge-offs | (1,289,000) | (1,425,000) | ||
Provision | 979,000 | 34,000 | 1,195,000 | (20,000) |
ALLL balance | 1,990,000 | 1,969,000 | 1,990,000 | 1,969,000 |
Construction and land development | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 1,648,000 | 2,828,000 | 1,968,000 | 2,888,000 |
Charge-offs | (1,270,000) | (1,270,000) | ||
Provision | 1,129,000 | (118,000) | 809,000 | (178,000) |
ALLL balance | 1,507,000 | 2,710,000 | 1,507,000 | 2,710,000 |
Commercial business | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 925,000 | 319,000 | 799,000 | 194,000 |
Charge-offs | (72,000) | (72,000) | ||
Recoveries | 14,000 | |||
Provision | 50,000 | 261,000 | 176,000 | 372,000 |
ALLL balance | 903,000 | 580,000 | 903,000 | 580,000 |
Loan to financial institutions | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 89,000 | |||
Provision | (89,000) | |||
Leases | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 3,000 | 3,000 | ||
ALLL balance | 3,000 | 3,000 | ||
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 16,000 | 6,000 | 15,000 | 6,000 |
Recoveries | 35,000 | 35,000 | ||
Provision | 2,000 | (36,000) | 3,000 | (36,000) |
ALLL balance | 18,000 | 5,000 | 18,000 | 5,000 |
Unallocated | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 784,000 | 759,000 | 799,000 | 797,000 |
Provision | (39,000) | 24,000 | (54,000) | (14,000) |
ALLL balance | $ 745,000 | $ 783,000 | $ 745,000 | $ 783,000 |
LOANS RECEIVABLE - Additional I
LOANS RECEIVABLE - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022USD ($)loan | Dec. 31, 2021USD ($)loan | Mar. 31, 2021USD ($)loan | Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)loan | Sep. 30, 2021USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Provision for loan losses | $ 2,900,000 | $ 0 | $ 2,900,000 | $ 0 | ||
Number of loans restructured | loan | 1 | 0 | 0 | |||
Amount of TDR loans, default | $ 516,000 | |||||
Number of loans classified as troubled debt restructuring | loan | 2 | 2 | ||||
Amount of loans classified as troubled debt restructuring | $ 692,000 | $ 692,000 | ||||
Number of non-accrual loans | loan | 2 | |||||
Loans receivable, net | $ 550,502,000 | $ 550,502,000 | $ 618,206,000 | |||
Number of loans charge off | loan | 8 | 0 | 8 | 0 | ||
Charge-offs | $ 3,367,000 | $ 3,503,000 | ||||
Recoveries | 7,000 | $ 35,000 | 8,000 | $ 50,000 | ||
Carrying amount | $ 642,487,000 | $ 642,487,000 | 707,623,000 | |||
Commercial and residential properties | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans default | loan | 0 | 0 | 0 | 0 | ||
Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Provision for loan losses | $ 979,000 | $ 34,000 | $ 1,195,000 | $ (20,000) | ||
Write-down amount of TDR loans | 705,000 | |||||
Charge-offs | 1,289,000 | 1,425,000 | ||||
Carrying amount | 141,474,000 | $ 141,474,000 | $ 165,992,000 | |||
Single family residential investment properties | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of non accrual loans secured | loan | 2 | |||||
Non-performing assets | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Charge-offs | $ 3,500,000 | $ 3,500,000 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Amount | ||
Non interest-bearing checking accounts | $ 35,590 | $ 37,409 |
Interest-bearing checking accounts | 82,042 | 87,752 |
Money market deposit accounts | 111,751 | 111,488 |
Passbook, club and statement savings | 229,758 | 229,989 |
Certificates maturing in six months or less | 123,757 | 143,767 |
Certificates maturing in more than six months | 87,878 | 101,110 |
Total deposits | $ 670,776 | $ 711,515 |
Percent | ||
Non interest-bearing checking accounts | 5.30% | 5.30% |
Interest-bearing checking accounts | 12.20% | 12.30% |
Money market deposit accounts | 16.70% | 15.70% |
Passbook, club and statement savings | 34.20% | 32.30% |
Certificates maturing in six months or less | 18.50% | 20.20% |
Certificates maturing in more than six months | 13.10% | 14.20% |
Total | 100.00% | 100.00% |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
DEPOSITS. | ||
Certificates of $250,000 and over | $ 92.4 | $ 95.3 |
ADVANCES FROM FEDERAL HOME LO_3
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM (Details) - USD ($) $ in Thousands | 18 Months Ended | |
Mar. 31, 2022 | Sep. 30, 2021 | |
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.59% | |
Amount | $ 206,793 | $ 232,025 |
Fixed Rate - Amortizing | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 3,547 | 5,778 |
Weighted average interest rate | 2.92% | |
Fixed Rate - Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 203,246 | 226,247 |
Weighted average interest rate | 2.58% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 20 to 30 Sep 21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Date of maturity from | Oct. 1, 2021 | |
Date of maturity to | Sep. 30, 2022 | |
Amount | $ 872 | 2,227 |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 20 to 30 Sep 21 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.94% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 20 to 30 Sep 21 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.05% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 20 to 30 Sep 21 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.99% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 22 to 30 Sep 23 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Date of maturity from | Oct. 1, 2022 | |
Date of maturity to | Sep. 30, 2023 | |
Amount | $ 2,675 | 3,551 |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 22 to 30 Sep 23 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.94% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 22 to 30 Sep 23 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.11% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 22 to 30 Sep 23 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.89% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 20 to 30 Sep 21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Date of maturity from | Oct. 1, 2021 | |
Date of maturity to | Sep. 30, 2022 | |
Amount | $ 40,249 | 63,250 |
Long-term | Fixed Rate Advances Maturity from 1 Oct 20 to 30 Sep 21 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.94% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 20 to 30 Sep 21 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.33% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 20 to 30 Sep 21 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.22% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 22 to 30 Sep 23 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Date of maturity from | Oct. 1, 2022 | |
Date of maturity to | Sep. 30, 2023 | |
Amount | $ 94,999 | 94,999 |
Long-term | Fixed Rate Advances Maturity from 1 Oct 22 to 30 Sep 23 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.00% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 22 to 30 Sep 23 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.22% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 22 to 30 Sep 23 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.52% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 23 to 30 Sep 24 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Date of maturity from | Oct. 1, 2023 | |
Date of maturity to | Sep. 30, 2024 | |
Amount | $ 67,998 | $ 67,998 |
Long-term | Fixed Rate Advances Maturity from 1 Oct 23 to 30 Sep 24 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.38% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 23 to 30 Sep 24 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.20% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 23 to 30 Sep 24 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.88% |
DERIVATIVES (Details)
DERIVATIVES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||
Unrealized Gain (Loss) | $ 10 | $ (12,834) |
Interest rate swap contract maturing on 1 May 2028 | ||
Derivative [Line Items] | ||
Hedge Item | State and political subdivisions | State and political subdivisions |
Notional Amount | $ 21,570 | $ 21,570 |
Receive Rate | 3 Mth Libor | 3 Mth Libor |
Unrealized Gain (Loss) | $ (624) | $ (2,365) |
Interest rate swap contract maturing on 1 Aug 2026 | ||
Derivative [Line Items] | ||
Hedge Item | Commercial loans | Commercial loans |
Notional Amount | $ 23,656 | $ 23,656 |
Receive Rate | 1 Mth Libor +225 to 276 bp | 1 Mth Libor +225 to 276 bp |
Unrealized Gain (Loss) | $ 0 | $ 0 |
Interest rate swap contract maturing on 12 Jun 2026 | ||
Derivative [Line Items] | ||
Hedge Item | 30 day wholesale funding | 30 day wholesale funding |
Notional Amount | $ 90,000 | $ 90,000 |
Receive Rate | 1 Mth Libor | 1 Mth Libor |
Unrealized Gain (Loss) | $ 1,177 | $ (3,495) |
Interest rate swap contract maturing on 27 Mar 24 | ||
Derivative [Line Items] | ||
Hedge Item | 90 day wholesale funding | 90 day wholesale funding |
Notional Amount | $ 135,000 | $ 135,000 |
Receive Rate | 3 Mth Libor | 3 Mth Libor |
Unrealized Gain (Loss) | $ (543) | $ (6,974) |
Minimum | Interest rate swap contract maturing on 1 May 2028 | ||
Derivative [Line Items] | ||
Pay rate | 3.06% | 3.06% |
Maturity date | Feb. 1, 2027 | Feb. 1, 2027 |
Minimum | Interest rate swap contract maturing on 1 Aug 2026 | ||
Derivative [Line Items] | ||
Pay rate | 4.10% | 4.10% |
Maturity date | Jun. 13, 2025 | Jun. 13, 2025 |
Minimum | Interest rate swap contract maturing on 12 Jun 2026 | ||
Derivative [Line Items] | ||
Pay rate | 1.36% | 1.36% |
Maturity date | Feb. 15, 2024 | Feb. 15, 2024 |
Minimum | Interest rate swap contract maturing on 27 Mar 24 | ||
Derivative [Line Items] | ||
Pay rate | 2.51% | 2.51% |
Maturity date | Jan. 11, 2024 | Jan. 11, 2024 |
Maximum | Interest rate swap contract maturing on 1 May 2028 | ||
Derivative [Line Items] | ||
Pay rate | 3.07% | 3.07% |
Maturity date | May 1, 2028 | May 1, 2028 |
Maximum | Interest rate swap contract maturing on 1 Aug 2026 | ||
Derivative [Line Items] | ||
Pay rate | 5.74% | 5.74% |
Maturity date | Aug. 1, 2026 | Aug. 1, 2026 |
Maximum | Interest rate swap contract maturing on 12 Jun 2026 | ||
Derivative [Line Items] | ||
Pay rate | 2.70% | 2.70% |
Maturity date | Jun. 12, 2026 | Jun. 12, 2026 |
Maximum | Interest rate swap contract maturing on 27 Mar 24 | ||
Derivative [Line Items] | ||
Pay rate | 2.78% | 2.78% |
Maturity date | Mar. 27, 2024 | Mar. 27, 2024 |
DERIVATIVES - Additional Inform
DERIVATIVES - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022USD ($)itemloansecuritycontract | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)itemloansecuritycontract | Mar. 31, 2021USD ($) | Sep. 30, 2021itemcontractsecurity | |
DERIVATIVES | |||||
Number of hedges | contract | 13 | 13 | 13 | ||
Income recognized as ineffectiveness | $ 3,000 | $ 3,000 | $ 3,000 | $ (5,000) | |
Number of interest rate swaps | item | 9 | 9 | 9 | ||
Number of loans | loan | 3 | 3 | |||
Number of investment securities | security | 7 | 7 | 7 | ||
Deposits as collateral for hedges | $ 400,000,000,000 | $ 400,000,000,000 |
INCOME TAXES - Items that gave
INCOME TAXES - Items that gave rise to significant portions of deferred income taxes (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Deferred tax assets: | ||
Allowance for loan losses | $ 1,591 | $ 1,716 |
Nonaccrual interest | 238 | 395 |
Accrued vacation | 14 | 14 |
Capital loss carryforward | 4 | 4 |
Other real estate owned | 67 | 0 |
Split dollar life insurance | 9 | 9 |
Post-retirement benefits | 65 | 67 |
Unrealized losses on available for sale securities | 1,966 | 0 |
Unrealized losses on interest rate swaps | 2,199 | |
Deferred compensation | 748 | 767 |
Net operating loss | 1,836 | 0 |
Goodwill | 41 | 47 |
Lease liability | 236 | 256 |
Other | 23 | 79 |
Employee benefit plans | 210 | 242 |
Total deferred tax assets | 7,048 | 5,795 |
Valuation allowance | 4 | 4 |
Total deferred tax assets, net of valuation allowance | 7,044 | 5,791 |
Deferred tax liabilities: | ||
Property | 167 | 127 |
Right of Use | 214 | 233 |
Realized gain on equity securities | 3 | 3 |
Unrealized gains on available for sale securities | 1,621 | |
Unrealized gains on interest rate swaps | 132 | 0 |
Purchase accounting adjustments | 423 | 394 |
Deferred loan fees | 377 | 392 |
Total deferred tax liabilities | 1,316 | 2,770 |
Net deferred tax assets | $ 5,728 | $ 3,021 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2022 | Sep. 30, 2021 | |
INCOME TAXES | ||
Period of capital gains recognized | 5 years | |
Valuation allowance | $ 4 | $ 4 |
STOCK COMPENSATION PLANS - 2008
STOCK COMPENSATION PLANS - 2008 Recognition and Retention Plan (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted | 0 | ||||||
2014 Stock Incentive Plan (the "2014 SIP") | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of vesting per year | 20.00% | ||||||
Vesting period of awards granted | 5 years | ||||||
Restricted stock awards or units | 2008 Recognition and Retention Plan ("2008 RRP") | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted | 8,209 | ||||||
Restricted stock awards or units | 2014 Stock Incentive Plan (the "2014 SIP") | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares purchased by RRP trust | 285,655 | ||||||
Number of shares granted | 18,291 | 233,500 | 0 | 0 | |||
Restricted stock awards or units | 2008 RRP and 2014 SIP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period of awards granted | 5 years | ||||||
Allocated Share-Based Compensation Expense | $ 31,000 | $ 41,000 | $ 72,000 | $ 84,000 | |||
Additional compensation expense for shares awarded remained unrecognized | $ 190,000 | $ 190,000 |
STOCK COMPENSATION PLANS - Summ
STOCK COMPENSATION PLANS - Summary of non-vested stock award activity (Details) | 6 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Shares | |
Non-vested stock awards at beginning of period | shares | 11,971 |
Granted | shares | 0 |
Forfeited | shares | 0 |
Vested | shares | (7,271) |
Non-vested stock awards at the end of the period | shares | 4,700 |
Weighted Average Grant Date Fair Value | |
Nonvested stock awards at beginning of period | $ / shares | $ 18.24 |
Granted | $ / shares | 0 |
Forfeited | $ / shares | 0 |
Vested | $ / shares | 16.01 |
Non-vested stock awards at the end of the period | $ / shares | $ 18.46 |
STOCK COMPENSATION PLANS - Opti
STOCK COMPENSATION PLANS - Option Plan (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Sep. 30, 2020 | Jul. 31, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares granted | 0 | |||||||
2008 Stock Option Plan (the "2008 Option Plan") | Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of vesting and exercisable per year | 20.00% | |||||||
Vesting period of options | 5 years | |||||||
Exercisable period of options after grant date | 10 years | |||||||
Number of common stock available for issuance | 533,808 | 533,808 | ||||||
Number of shares granted | 0 | |||||||
2014 Stock Incentive Plan (the "2014 SIP") | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period of options | 5 years | |||||||
2014 Stock Incentive Plan (the "2014 SIP") | Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of common stock available for issuance | 714,145 | 714,145 | ||||||
Number of options awarded | 4,500 | 12,500 | 39,702 | |||||
2008 Option Plan and 2014 SIP | Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of options awarded | 0 | |||||||
Recognized compensation expense | $ 39,000 | $ 41,000 | $ 80,000 | $ 84,000 | ||||
Additional compensation expense for shares awarded remained unrecognized | $ 82,000 | $ 82,000 |
STOCK COMPENSATION PLANS - Su_2
STOCK COMPENSATION PLANS - Summary of status of stock options under Stock Option Plan (Details) - 2008 Option Plan and 2014 SIP - Stock Options | 6 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Shares | |
Options outstanding at beginning of period | shares | 521,258 |
Granted | shares | 0 |
Exercised | shares | 0 |
Forfeited | shares | 0 |
Outstanding at the end of the period | shares | 521,258 |
Exercisable at end of period | shares | 452,537 |
Weighted Average Exercise Price | |
Options outstanding at beginning of period | $ / shares | $ 14.23 |
Granted | $ / shares | 0 |
Exercised | $ / shares | 0 |
Forfeited | $ / shares | 0 |
Outstanding at the end of the period | $ / shares | 14.23 |
Exercisable at end of period | $ / shares | $ 14.14 |
STOCK COMPENSATION PLANS - Op_2
STOCK COMPENSATION PLANS - Option Granted (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average remaining contractual term for options outstanding | 4 years | |||
Stock Options | Granted in fiscal 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Estimated fair value of options granted per share | $ 3.91 | |||
Fair value, valuation method | Black-Scholes pricing model | |||
Exercise price and fair value | $ 13.86 | $ 13.86 | ||
Expected term | 7 years | |||
Volatility rate | 34.46% | |||
Expected interest rate | 1.19% | |||
Expected yield | 2.02% | |||
2008 Option Plan and 2014 SIP | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation expense | $ 39,000 | $ 41,000 | $ 80,000 | $ 84,000 |
Additional compensation expense for shares awarded remained unrecognized | $ 82,000 | $ 82,000 | ||
Weighted average period for recognition of nonvested awards | 1 year 8 months 12 days |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Sep. 30, 2021 | |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | $ 470,000,000,000 | |
Aggregate undisbursed portion of loans-in-process | 83,890,000 | $ 80,620,000 |
Loan Origination Commitments | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | 31,100,000 | 34,900,000 |
Aggregate undisbursed portion of loans-in-process | $ 83,900,000 | $ 80,600,000 |
Loan Origination Commitments | Minimum | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Market interest rate on fixed and variable rate loans | 4.25% | 2.99% |
Loan Origination Commitments | Maximum | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Market interest rate on fixed and variable rate loans | 5.00% | 5.00% |
Unused lines of Credit | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | $ 47,900,000 | $ 68,100,000 |
Letters of Credit | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | $ 60,000 | $ 1,200,000 |
FAIR VALUE MEASUREMENT - Assets
FAIR VALUE MEASUREMENT - Assets measured at fair value on recurring and non-recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Assets, Total | $ 298,347 | $ 305,969 |
Liabilities: | ||
Liabilities, Total | 1,167 | 12,834 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Assets, Total | 21 | 22 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Assets, Total | 298,326 | 305,947 |
Liabilities: | ||
Liabilities, Total | 1,167 | 12,834 |
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | ||
Assets: | ||
Assets, Total | 2,613 | 3,194 |
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Level 2 | ||
Assets: | ||
Assets, Total | 2,613 | 3,194 |
Fair Value, Measurements, Recurring | State and political subdivisions | ||
Assets: | ||
Assets, Total | 73,587 | 72,259 |
Fair Value, Measurements, Recurring | State and political subdivisions | Level 2 | ||
Assets: | ||
Assets, Total | 73,587 | 72,259 |
Fair Value, Measurements, Recurring | Mortgage-Backed Securities | ||
Assets: | ||
Assets, Total | 118,291 | 135,353 |
Fair Value, Measurements, Recurring | Mortgage-Backed Securities | Level 2 | ||
Assets: | ||
Assets, Total | 118,291 | 135,353 |
Fair Value, Measurements, Recurring | Corporate bonds | ||
Assets: | ||
Assets, Total | 102,658 | 95,141 |
Fair Value, Measurements, Recurring | Corporate bonds | Level 2 | ||
Assets: | ||
Assets, Total | 102,658 | 95,141 |
Fair Value, Measurements, Recurring | Equity securities | ||
Assets: | ||
Assets, Total | 21 | |
Fair Value, Measurements, Recurring | Equity securities | Level 1 | ||
Assets: | ||
Assets, Total | 21 | |
Fair Value, Measurements, Recurring | Equity security - FHLMC preferred stock | ||
Assets: | ||
Assets, Total | 1,177 | 22 |
Fair Value, Measurements, Recurring | Equity security - FHLMC preferred stock | Level 1 | ||
Assets: | ||
Assets, Total | 22 | |
Fair Value, Measurements, Recurring | Equity security - FHLMC preferred stock | Level 2 | ||
Assets: | ||
Assets, Total | 1,177 | |
Fair Value, Measurements, Recurring | Interest rate swap | ||
Liabilities: | ||
Liabilities, Total | 1,167 | 12,834 |
Fair Value, Measurements, Recurring | Interest rate swap | Level 2 | ||
Liabilities: | ||
Liabilities, Total | 1,167 | 12,834 |
Fair value measurements on a nonrecurring basis | ||
Assets: | ||
Assets, Total | 3,828 | 4,109 |
Fair value measurements on a nonrecurring basis | Level 3 | ||
Assets: | ||
Assets, Total | 3,828 | 4,109 |
Fair value measurements on a nonrecurring basis | Other Real Estate Owned [Member] | ||
Assets: | ||
Assets, Total | 3,828 | 4,109 |
Fair value measurements on a nonrecurring basis | Other Real Estate Owned [Member] | Level 3 | ||
Assets: | ||
Assets, Total | $ 3,828 | $ 4,109 |
FAIR VALUE MEASUREMENT - Valuat
FAIR VALUE MEASUREMENT - Valuation processes used to determine nonrecurring fair value measurements categorized within level 3 (Details) - Level 3 | Mar. 31, 2022USD ($) | Sep. 30, 2021USD ($) |
Fair value measurements on a nonrecurring basis | Management discount for selling costs, property type and market volatility | Property appraisals | ||
FAIR VALUE MEASUREMENT | ||
Real estate owned measurement input (in percent) | 2 | |
Impaired loan | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans | $ 0 | $ 0 |
Real estate owned | Fair value measurements on a nonrecurring basis | Management discount for selling costs, property type and market volatility | Property appraisals | ||
FAIR VALUE MEASUREMENT | ||
Other Real estate owned | $ 3,828,000 | $ 4,109,000 |
Real estate owned measurement input (in percent) | 2 |
FAIR VALUE MEASUREMENT - Asse_2
FAIR VALUE MEASUREMENT - Assets measured at fair value on a non-recurring basis and the adjustments to the carrying value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Assets: | ||
Loans receivable, net | $ 550,502 | $ 618,206 |
Interest rate swap contracts | 10 | |
Liabilities: | ||
Advances from FHLB long-term | 206,793 | 232,025 |
Carrying Amount | ||
Assets: | ||
Investment and mortgage-backed securities held to maturity | 18,653 | 20,074 |
Loans receivable, net | 550,502 | 618,206 |
Liabilities: | ||
Certificates of deposit | 211,635 | 244,877 |
Advances from FHLB long-term | 206,793 | 232,025 |
Fair Value | ||
Assets: | ||
Investment and mortgage-backed securities held to maturity | 18,807 | 21,161 |
Loans receivable, net | 538,780 | 620,017 |
Liabilities: | ||
Certificates of deposit | 216,947 | 252,510 |
Advances from FHLB long-term | 207,755 | 239,301 |
Level 1 | ||
Assets: | ||
Investment and mortgage-backed securities held to maturity | 0 | 0 |
Loans receivable, net | 0 | 0 |
Liabilities: | ||
Certificates of deposit | 216,947 | 0 |
Advances from FHLB long-term | 207,755 | 0 |
Level 2 | ||
Assets: | ||
Investment and mortgage-backed securities held to maturity | 18,807 | 21,161 |
Loans receivable, net | 0 | 0 |
Liabilities: | ||
Certificates of deposit | 0 | 0 |
Advances from FHLB long-term | 0 | 0 |
Level 3 | ||
Assets: | ||
Investment and mortgage-backed securities held to maturity | 0 | 0 |
Loans receivable, net | 538,780 | 620,017 |
Liabilities: | ||
Certificates of deposit | 0 | 252,510 |
Advances from FHLB long-term | $ 0 | $ 239,301 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Related to acquisition of Polonia Bancorp (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill | ||||
Balance, Goodwill | $ 6,102 | |||
Balance, Goodwill | $ 6,102 | 6,102 | ||
Core deposit intangible | ||||
Balance | 246 | |||
Balance | 205 | 205 | ||
GOODWILL AND OTHER INTANGIBLE ASSETS, Total | ||||
Amortization | (19) | $ (23) | (41) | $ (49) |
Polonia Bancorp | ||||
Goodwill | ||||
Balance, Goodwill | 6,102 | |||
Additions/Adjustments | 0 | |||
Balance, Goodwill | 6,102 | 6,102 | ||
GOODWILL AND OTHER INTANGIBLE ASSETS, Total | ||||
Balance, Total | 6,348 | |||
Additions/Adjustments | 0 | |||
Amortization | (41) | |||
Balance, Total | 6,307 | 6,307 | ||
Polonia Bancorp | Core deposit intangible | ||||
Core deposit intangible | ||||
Balance | 246 | |||
Additions/Adjustments | 0 | |||
Amortization | (41) | |||
Balance | $ 205 | $ 205 | ||
Amortization Period | 10 years |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Future fiscal periods amortization expense (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
2022 | $ 37 | |
2023 | 64 | |
2024 | 49 | |
2025 | 34 | |
2026 | 18 | |
Thereafter | 3 | |
Total | $ 205 | $ 246 |
PENDING BUSINESS COMBINATION -
PENDING BUSINESS COMBINATION - Narrative (Details) - Plan of Merger With Fulton Financial Corporation [Member] | Mar. 01, 2022USD ($)$ / shares |
Business Acquisition [Line Items] | |
Cash consideration for merger | $ | $ 3.65 |
Shares price in business combination | $ 2.50 |
Fixed exchange ratio | 0.7974 |
Percentage of consideration paid | 80.00% |
Payable in cash under the business combination | 20.00% |
Exercise price | $ 18.25 |