Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 15, 2016 | Mar. 31, 2016 | |
Entity Registrant Name | Magyar Bancorp, Inc. | ||
Entity Central Index Key | 1,337,068 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 25,900 | ||
Entity Common Stock, Shares Outstanding | 5,820,746 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 | ||
Magyar Bancorp, MHC [Member] | |||
Entity Common Stock, Shares Owned by Registrant's mutual holding company | 3,200,450 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Assets | ||
Cash | $ 1,000 | $ 1,081 |
Interest earning deposits with banks | 20,806 | 17,027 |
Total cash and cash equivalents | 21,806 | 18,108 |
Investment securities - available for sale, at fair value | 5,234 | 6,064 |
Investment securities - held to maturity, at amortized cost (fair value of $53,849 and $53,248 at September 30, 2016 and 2015, respectively) | 52,934 | 52,614 |
Federal Home Loan Bank of New York stock, at cost | 2,239 | 2,025 |
Loans receivable, net of allowance for loan losses of $3,056 and $2,886 at September 30, 2016 and 2015, respectively | 455,031 | 420,596 |
Bank owned life insurance | 11,257 | 10,962 |
Accrued interest receivable | 1,710 | 1,703 |
Premises and equipment, net | 18,084 | 17,818 |
Other real estate owned ("OREO") | 12,082 | 16,192 |
Other assets | 4,000 | 4,483 |
Total assets | 584,377 | 550,565 |
Liabilities | ||
Deposits | 492,650 | 466,269 |
Escrowed funds | 1,668 | 1,301 |
Federal Home Loan Bank of New York advances | 36,040 | 31,594 |
Accrued interest payable | 115 | 102 |
Accounts payable and other liabilities | 6,179 | 4,630 |
Total liabilities | 536,652 | 503,896 |
Stockholders' equity | ||
Preferred stock: $.01 Par Value, 1,000,000 shares authorized; none issued | ||
Common stock: $.01 Par Value, 8,000,000 shares authorized; 5,923,742 issued; 5,820,746 and 5,819,494 shares outstanding at September 30, 2016 and 2015, respectively | 59 | 59 |
Additional paid-in capital | 26,270 | 26,275 |
Treasury stock: 102,996 and 104,248 shares at September 30, 2016 and 2015, respectively, at cost | (1,152) | (1,166) |
Unearned Employee Stock Ownership Plan shares | (627) | (752) |
Retained earnings | 24,334 | 23,252 |
Accumulated other comprehensive loss | (1,159) | (999) |
Total stockholders' equity | 47,725 | 46,669 |
Total liabilities and stockholders' equity | $ 584,377 | $ 550,565 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Fair value of investment securities - held to maturity | $ 53,849 | $ 53,248 |
Allowance for loan losses | $ 3,056 | $ 2,886 |
Preferred stock; par value | $ 0.01 | $ 0.01 |
Preferred stock; shares authorized | 1,000,000 | 1,000,000 |
Preferred stock; shares issued | 0 | 0 |
Common stock; par value | $ 0.01 | $ 0.01 |
Common stock; shares authorized | 8,000,000 | 8,000,000 |
Common stock; shares issued | 5,923,742 | 5,923,742 |
Common stock, shares outstanding | 5,820,746 | 5,819,494 |
Treasury stock, shares | 102,996 | 104,248 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Interest and dividend income | ||
Loans, including fees | $ 18,765 | $ 17,987 |
Investment securities | ||
Taxable | 1,589 | 1,367 |
Federal Home Loan Bank of New York stock | 97 | 83 |
Total interest and dividend income | 20,451 | 19,437 |
Interest expense | ||
Deposits | 2,788 | 2,446 |
Borrowings | 744 | 750 |
Total interest expense | 3,532 | 3,196 |
Net interest and dividend income | 16,919 | 16,241 |
Provision for loan losses | 1,366 | 1,264 |
Net interest and dividend income after provision for loan losses | 15,553 | 14,977 |
Other income | ||
Service charges | 1,023 | 981 |
Income on bank owned life insurance | 295 | 304 |
Other operating income | 130 | 121 |
Gains on sales of loans | 625 | 542 |
Gains on sales of investment securities | 72 | 42 |
Total other income | 2,145 | 1,990 |
Other expenses | ||
Compensation and employee benefits | 8,482 | 8,140 |
Occupancy expenses | 2,727 | 2,834 |
Professional fees | 984 | 1,069 |
Data processing expenses | 486 | 520 |
OREO expenses | 770 | 447 |
FDIC deposit insurance premiums | 720 | 721 |
Loan servicing expenses | 220 | 276 |
Insurance expense | 253 | 235 |
Other expenses | 1,301 | 1,415 |
Total other expenses | 15,943 | 15,657 |
Income before income tax expense | 1,755 | 1,310 |
Income tax expense | 664 | 413 |
Net income | $ 1,091 | $ 897 |
Net income per share-basic and diluted | $ 0.19 | $ 0.15 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,091 | $ 897 |
Other comprehensive loss | ||
Net unrealized gain on securities available for sale | 49 | 229 |
Less: reclassification for realized gains on sales of securities available for sale | (72) | (42) |
Defined benefit pension plan | (242) | (670) |
Other comprehensive loss, before tax | (265) | (483) |
Deferred income tax effect | 105 | 200 |
Total other comprehensive loss | (160) | (283) |
Total comprehensive income | $ 931 | $ 614 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Unearned ESOP Shares [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance, at Sep. 30, 2014 | $ 59 | $ 26,295 | $ (1,211) | $ (877) | $ 22,382 | $ (716) | $ 45,932 |
Balance, shares at Sep. 30, 2014 | 5,815,444 | ||||||
Net income | 897 | 897 | |||||
Other comprehensive loss | (283) | (283) | |||||
Treasury stock used for restricted stock plan | (18) | 45 | (27) | ||||
Treasury stock used for restricted stock plan, shares | 4,050 | ||||||
ESOP shares allocated | (14) | 125 | 111 | ||||
Stock-based compensation expense | 12 | 12 | |||||
Balance, at Sep. 30, 2015 | $ 59 | 26,275 | (1,166) | (752) | 23,252 | (999) | $ 46,669 |
Balance, shares at Sep. 30, 2015 | 5,819,494 | 5,819,494 | |||||
Net income | 1,091 | $ 1,091 | |||||
Other comprehensive loss | (160) | (160) | |||||
Treasury stock used for restricted stock plan | (5) | 14 | (9) | ||||
Treasury stock used for restricted stock plan, shares | 1,252 | ||||||
ESOP shares allocated | (3) | 125 | 122 | ||||
Stock-based compensation expense | 3 | 3 | |||||
Balance, at Sep. 30, 2016 | $ 59 | $ 26,270 | $ (1,152) | $ (627) | $ 24,334 | $ (1,159) | $ 47,725 |
Balance, shares at Sep. 30, 2016 | 5,820,746 | 5,820,746 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities | ||
Net income | $ 1,091 | $ 897 |
Adjustment to reconcile net income to net cash provided by operating activities | ||
Depreciation expense | 778 | 845 |
Premium amortization on investment securities, net | 195 | 245 |
Provision for loan losses | 1,366 | 1,264 |
Provision for loss on other real estate owned | 301 | 66 |
Proceeds from the sales of loans | 9,217 | 9,722 |
Gains on sale of loans | (625) | (542) |
Gains on sales of investment securities | (72) | (42) |
Losses (gains) on the sales of other real estate owned | 101 | (61) |
ESOP compensation expense | 122 | 111 |
Stock-based compensation expense | 3 | 12 |
Deferred income tax expense | 605 | 403 |
Increase in accrued interest receivable | (7) | (31) |
Increase in surrender value bank owned life insurance | (295) | (304) |
Decrease in other assets | (18) | 246 |
Increase (decrease) in accrued interest payable | 13 | (17) |
Increase (decrease) in accounts payable and other liabilities | 1,307 | (311) |
Net cash provided by operating activities | 14,082 | 12,503 |
Investing activities | ||
Net increase in loans receivable | (36,824) | (25,855) |
Purchases of loans receivable | (9,393) | (5,840) |
Purchases of investment securities held to maturity | (10,565) | (9,700) |
Purchases of investment securities available for sale | (6,482) | |
Sales of investment securities available for sale | 6,298 | 5,421 |
Principal repayments on investment securities held to maturity | 10,080 | 5,884 |
Principal repayments on investment securities available for sale | 1,033 | 734 |
Purchases of premises and equipment | (184) | (83) |
Investment in other real estate owned | (162) | (465) |
Proceeds from the sale of other real estate owned | 4,835 | 6,459 |
Purchase of Federal Home Loan Bank stock | (214) | (264) |
Net cash used by investing activities | (41,578) | (23,709) |
Financing activities | ||
Net increase in deposits | 26,381 | 17,818 |
Net increase in escrowed funds | 367 | 144 |
Proceeds from long-term advances | 6,706 | 11,094 |
Repayments of long-term advances | (2,260) | (5,000) |
Repayments of securities sold under agreements to repurchase | (5,000) | |
Net cash provided by financing activities | 31,194 | 19,056 |
Net increase in cash and cash equivalents | 3,698 | 7,850 |
Cash and cash equivalents, beginning of period | 18,108 | 10,258 |
Cash and cash equivalents, end of period | 21,806 | 18,108 |
Cash paid for | ||
Interest | 3,520 | 3,214 |
Income taxes | 4 | 14 |
Non-cash investing activities | ||
Real estate acquired in full satisfaction of loans in foreclosure | 1,824 | 4,850 |
OREO transferred to premises and equipment | $ 860 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | NOTE A - ORGANIZATION On January 23, 2006, Magyar Bank (the “Bank”) completed a reorganization involving a series of transactions by which Bank’s corporate structure was changed from a mutual savings bank to the mutual holding company form of ownership. Magyar Bank became a New Jersey-chartered stock savings bank subsidiary of Magyar Bancorp, Inc., a Delaware-chartered mid-tier stock holding company. Magyar Bancorp, Inc. (the “Company”) owns 100% of the outstanding shares of common stock of Magyar Bank. Magyar Bancorp, Inc. is a majority-owned subsidiary of Magyar Bancorp, MHC, a New Jersey-chartered mutual holding company. Magyar Bancorp, MHC, owns 54.0%, or 3,200,450, of the issued shares of common stock of Magyar Bancorp, Inc. Of the remaining shares, 2,620,296, or 44.2%, are held by public stockholders and 102,996, or 1.8%, are held by Magyar Bancorp, Inc. in treasury stock. So long as Magyar Bancorp, MHC exists, it will be required to own a majority of the voting stock of Magyar Bancorp, Inc. Magyar Bancorp, Inc. and Magyar Bancorp, MHC are subject to comprehensive regulation and examination by the Board of Governors of the Federal Reserve System and the New Jersey Department of Banking and Insurance. The Bank is subject to regulations issued by the New Jersey Department of Banking and Insurance and the Federal Deposit Insurance Corporation (the “FDIC”). The Bank’s administrative office is located in New Brunswick, New Jersey. The Bank has six branch offices which are located in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison, New Jersey. The Bank’s savings deposits are insured by the FDIC through the Deposit Insurance Fund (DIF); also, the Bank is a member of the Federal Home Loan Bank of New York. MagBank Investment Company, a New Jersey investment corporation subsidiary of the Bank, was formed on August 15, 2006 for the purpose of buying, selling and holding investment securities. Hungaria Urban Renewal, LLC is a Delaware limited-liability corporation established in 2002 as a qualified intermediary operating for the purpose of acquiring and developing the Bank’s new main office. The Bank owns a 100% interest in Hungaria Urban Renewal, LLC, which has no other business other than owning the Bank’s main office site. Magyar Service Corporation, a New Jersey corporation, is a wholly owned, non-bank subsidiary of the Bank. Magyar Service Corporation, which also operates under the name Magyar Financial Services, receives commissions from annuity and life insurance sales referred to a licensed, non-bank financial planner. The Bank competes with other banking and financial institutions in its primary market areas. Commercial banks, savings banks, savings and loan associations, credit unions and money market funds actively compete for savings and time certificates of deposit and all types of loans. Such institutions, as well as consumer financial and insurance companies, may be considered competitors of the Bank with respect to one or more of the services it renders. The Bank is subject to regulations of certain state and federal agencies and, accordingly, the Bank is periodically examined by such regulatory authorities. As a consequence of the regulation of commercial banking activities, the Bank’s business is particularly susceptible to future state and federal legislation and regulations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. Basis of Financial Statement Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (US GAAP) and predominant practices within the banking industry. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank, and its wholly-owned subsidiaries MagBank Investment Company, Magyar Service Corporation, and Hungaria Urban Renewal, LLC. All intercompany balances and transactions have been eliminated in the consolidated financial statements. The Company has evaluated subsequent events and transactions occurring subsequent to the consolidated balance sheet date of September 30, 2016, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. In preparing financial statements in conformity with US GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The principal estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses and the deferred tax asset. The evaluation of the adequacy of the allowance for loan losses includes an analysis of the individual loans and overall risk characteristics and size of the different loan portfolios, and takes into consideration current economic and market conditions, the capability of specific borrowers to pay specific loan obligations, as well as current loan collateral values. However, actual losses on specific loans, which also are encompassed in the analysis, may vary from estimated losses. The Company records income taxes using the asset and liability method. Accordingly, deferred tax assets and liabilities: (i) are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns; (ii) are attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases; and (iii) are measured using enacted tax rates expected to apply in the years when those temporary differences are expected to be recovered or settled. Where applicable, deferred tax assets are reduced by a valuation allowance for any portions determined not likely to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period of enactment. The valuation allowance is adjusted, by a charge or credit to income tax expense, as changes in facts and circumstances warrant. 2. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, time deposits with original maturities less than three months and overnight deposits. 3. Investment Securities The Company classifies its investment securities into one of three portfolios: held to maturity, available for sale or trading. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity securities and reported at amortized cost. Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized holding gains and losses included in earnings. Debt and equity securities not classified as either trading securities or as held to maturity securities are classified as available for sale securities and reported at fair value, with unrealized holding gains or losses, net of deferred income taxes, reported in the accumulated other comprehensive income (“AOCI”) component of stockholders’ equity. If the fair value of a security is less than its amortized cost, the security is deemed to be impaired. Management evaluates all securities with unrealized losses quarterly to determine if such impairments are “temporary” or “other-than-temporary” in accordance with applicable accounting guidance. The Company accounts for temporary impairments based upon security classification as either available for sale, held to maturity or trading. Temporary impairments on “available for sale” securities are recognized, on a tax-effected basis, through AOCI with offsetting entries adjusting the carrying value of the security and the balance of deferred taxes. Conversely, the Company does not adjust the carrying value of “held to maturity” securities for temporary impairments, although information concerning the amount and duration of impairments on held to maturity securities is generally disclosed in periodic consolidated financial statements. The carrying value of securities held in a trading portfolio is adjusted to their fair value through earnings on a daily basis. However, the Company maintained no securities in trading portfolios at or during the periods presented in these consolidated financial statements. The Company accounts for other-than-temporary impairments based upon several considerations. First, other-than-temporary impairments on securities that the Company has decided to sell as of the close of a fiscal period, or will, more likely than not, be required to sell prior to the full recovery of the their fair value to a level equal to or exceeding their amortized cost, are recognized in operations. If neither of these criteria apply, then the other-than-temporary impairment is separated into credit-related and noncredit-related components. The credit-related impairment generally represents the amount by which the present value of the cash flows that are expected to be collected on an other-than-temporarily impaired security fall below its amortized cost while the noncredit-related component represents the remaining portion of the impairment not otherwise designated as credit-related. The Company recognizes credit-related, other-than-temporary impairments in earnings, while noncredit-related, other-than-temporary impairments on debt securities are recognized, net of deferred taxes, in AOCI. Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to purchase and hold restricted stock of its district FHLB according to a predetermined formula. This stock is restricted in that it may only be sold to the FHLB and all sales must be at par. Accordingly, the FHLB restricted stock is carried at cost, less any applicable impairment charges. Premiums and discounts on all securities are amortized or accreted to maturity by use of the level-yield method considering the impact of principal amortization and prepayments on mortgage-backed securities. Gain or loss on sales of securities is recognized on the specific identification method. 4. Loans and Allowance for Loan Losses Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of unpaid principal, adjusted for net deferred loan fees and costs, and reduced by an allowance for loan losses. Interest on loans is accrued and credited to operations based upon the principal amounts outstanding. The allowance for loan losses is established through a provision for possible loan losses charged to operations. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Income recognition of interest is discontinued when, in the opinion of management, the collectability of such interest becomes doubtful. A loan is generally classified as non-accrual when the scheduled payment(s) due on the loan is delinquent for more than three months. Loan origination fees and certain direct origination costs are deferred and amortized over the life of the related loans as an adjustment to the yield on loans receivable using the effective interest method. Management uses a ten point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than three months past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as severe delinquency, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. The Asset Review Committee performs monthly reviews of all commercial relationships internally rated 6 (“Watch”) or worse. Confirmation of the appropriate risk grade is performed by an external loan review company that semi-annually reviews and assesses loans within the portfolio. Generally, the external consultant reviews commercial relationships greater than $500,000 and/or criticized relationships greater than $250,000. Detailed reviews, including plans for resolution, are performed on loans classified as Substandard on a monthly basis. The allowance for loan losses is maintained at an amount management deems adequate to cover estimated losses. In determining the level to be maintained, management evaluates many factors, including current economic trends, industry experience, historical loss experience, industry loan concentrations, the borrowers’ ability to repay and repayment performance, and estimated collateral values. In the opinion of management, the present allowance is adequate to absorb reasonable, foreseeable loan losses. While management uses the best information available to make such evaluations, future adjustments to the allowance may be necessary based on changes in economic conditions or any of the other factors used in management’s determination. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for losses on loans. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Charge-offs to the allowance are made when the loan is transferred to other real estate owned or other determination of a confirmed loss. Recoveries on loans previously charged off are also recorded through the allowance. A loan is considered impaired when, based upon current information and events, it is probable that a creditor will be unable to collect all amounts due including principal and interest, according to the contractual terms of the loan agreement. The Company measures impaired loans based on the present value of expected future cash flows discounted at the loan’s effective interest rate or as a practical expedient, at the loan’s current observable market price, or the fair value of the collateral if the loan is collateral dependent. The amount by which the recorded investment of an impaired loan exceeds the measurement value is recognized by creating a valuation allowance through a charge to the provision for loan losses. Impairment criteria generally do not apply to those smaller-balance homogeneous loans that are collectively evaluated for impairment which, for the Company, includes one- to four-family first mortgage loans and consumer loans, other than those modified in a troubled debt restructuring. The Company records cash receipts on impaired loans that are non-performing as a reduction to principal before applying amounts to interest or late charges unless specifically directed by the Bankruptcy Court to apply payments otherwise. The Company may continue to recognize interest income on impaired loans where there is no confirmed loss. 5. Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation, and include capitalized expenditures for new facilities, major betterments and renewals. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method based upon the estimated useful lives of the related assets for financial reporting purposes and using the mandated methods by asset type for income tax purposes. Leasehold improvements are depreciated using the straight-line method based upon the initial term of the lease. The Company accounts for the impairment of long-lived assets in accordance with US GAAP, which requires recognition and measurement for the impairment of long-lived assets to be held and used or to be disposed of by sale. The Company had no impaired long-lived assets at September 30, 2016 and 2015. 6. Derivative Contracts Derivative contracts are carried at fair value with unrealized gains and losses excluded from earnings and reported in a separate component of stockholders’ equity, net of related income tax effects. Gains and losses on derivative contracts are recognized upon realization utilizing the specific identification method. As required by US GAAP, the Company recognizes all derivatives as either assets or liabilities in its Consolidated Balance Sheets and measures those instruments at fair value. The Company had no derivative contracts at September 30, 2016 and 2015. 7. Other Real Estate Owned Real estate acquired through foreclosure, or a deed-in-lieu of foreclosure, is recorded at fair value less estimated selling costs at the date of acquisition or transfer, and subsequently at the lower of its net cost or fair value less estimated selling costs. Adjustments to the carrying value at the date of acquisition or transfer are charged to the allowance for loan losses. The carrying value of the individual properties is subsequently adjusted to the extent it exceeds estimated fair value less estimated selling costs, at which time a provision for losses on such real estate is charged to operations. Operating expenses of holding real estate, net of related income, are charged against income as incurred. Gains on sales of real estate are recognized, normally at closing, when down payment and certain other requirements are met; otherwise such gains are deferred and recognized on the installment method of accounting. Losses on the disposition of real estate, including expenses incurred in connection with the disposition, are charged to operations. 8. Income Taxes The Company and its subsidiaries file consolidated federal and individual state income tax returns. Income taxes are allocated based on the contribution of their respective income or loss to the consolidated income tax return. The Company records income taxes on the basis of reported income using the asset and liability method. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. To the extent that current available evidence about the future raises doubt about the realization of a deferred tax asset, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company follows the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 740, which provides clarification on accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. At September 30, 2016 and 2015, no significant income tax uncertainties have been included in the Company’s Consolidated Balance Sheets. The Company’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Consolidated Statements of Operations. No interest and penalties were recorded during the years ended September 30, 2016 and 2015. The tax years subject to examination by the taxing authorities are the years ended September 30, 2011 and forward. 9. Advertising Costs The Company expenses advertising costs as incurred. 10. Earnings Per Share Basic income per share is calculated by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding for the period. The weighted average common shares outstanding include shares held by the Magyar Bancorp, MHC and shares allocated to the Employee Stock Ownership Plan. Diluted income per share is calculated by adjusting the weighted average common shares outstanding to reflect the potential dilution that could occur using the treasury stock method if securities or other contracts to issue common stock, such as stock options and unvested restricted stock, were exercised and converted into common stock. The resulting shares issued would share in the earnings of the Company. Shares issued and shares reacquired during the period are weighted for the portion of the period that they were outstanding. In periods of loss, dilution is not calculated and diluted loss per share is equal to basic loss per share. The following table illustrates the reconciliation of the numerators and denominators of the basic and diluted earnings per share (EPS) calculations. All stock options were anti-dilutive at September 30, 2016 and 2015. For the Years Ended September 30, 2016 2015 Weighted Per Weighted Per average share average share Income shares Amount Income shares Amount (In thousands, except share and per share data) Basic EPS Net income available to common shareholders $ 1,091 5,820,563 $ 0.19 $ 897 5,818,712 $ 0.15 Effect of dilutive securities Options and grants — — — — 215 — Diluted EPS Net income available to common shareholders plus assumed conversion $ 1,091 5,820,563 $ 0.19 $ 897 5,818,927 $ 0.15 11. Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) includes net income as well as certain other items which result in a change to equity during the period. The other items allocated to comprehensive income (loss), as well as the related income tax effects, for the years ended September 30, 2016 and 2015 were as follows: September 30, 2016 2015 Tax Net of Tax Net of Before Tax (Benefit) Tax Before Tax (Benefit) Tax Amount Expense Amount Amount Expense Amount (In thousands) Unrealized holding gains (losses) arising during period on: Available-for-sale investments $ 49 $ (21 ) $ 28 $ 229 $ (85 ) $ 144 Less reclassification adjustment for net gains realized on available-for-sale investments (a) (b) (72 ) 29 (43 ) (42 ) 17 (25 ) Defined benefit pension plan (242 ) 97 (145 ) (670 ) 268 (402 ) Other comprehensive loss, net $ (265 ) $ 105 $ (160 ) $ (483 ) $ 200 $ (283 ) (a) Realized gains on securities transactions included in gains on sales of investment securities in the accompanying Consolidated Statements of Operations (b) Tax effect included in income tax expense in the accompanying Consolidated Statements of Operations The components of accumulated other comprehensive loss at September 30, 2016 and 2015 were as follows: September 30, 2016 2015 (In thousands) Available-for-sale investments $ 32 $ 47 Defined benefit pension plan (1,191 ) (1,046 ) Total accumulated other comprehensive loss $ (1,159 ) $ (999 ) 12. Bank-Owned Life Insurance The Company has purchased Bank-Owned Life Insurance policies (“BOLI”). BOLI involves the purchasing of life insurance by the Company on directors and executive officers. The proceeds are used to help defray the costs of non-qualified compensation plans. The Company is the owner and beneficiary of the policies. BOLI is recorded on the Consolidated Balance Sheets at its cash surrender value and changes in the cash surrender value are recorded in other income in the Consolidated Statement of Operations. 13. Segment Reporting The Company acts as an independent, community, financial services provider, and offers traditional banking and related financial services to individual, business and government customers. The Company offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and home equity loans; and the provision of other financial services. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial and retail operations of the Company. As such, discrete financial information is not available and segment reporting would not be meaningful. 14. New Accounting Pronouncements In connection with the preparation of quarterly and annual reports in accordance with the Securities and Exchange Commission’s (“SEC”) Securities Exchange Act of 1934, SEC Staff Accounting Bulletin Topic 11.M requires the disclosure of the impact that recently issued accounting standards will have on financial statements when they are adopted in the future. In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Topic 606 Revenue Recognition In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718) In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation [Abstract] | |
STOCK-BASED COMPENSATION | NOTE C – STOCK-BASED COMPENSATION The Company follows FASB Accounting Standards Codification (“ASC”) Section 718, Compensation-Stock Compensation, which covers a wide range of share-based compensation arrangements including share options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. ASC 718 requires that compensation cost relating to share-based payment transactions be recognized in financial statements. The cost is measured based on the fair value of the equity or liability instruments issued. ASC 718 also requires the Company to realize as a financing cash flow rather than an operating cash flow, as previously required, the benefits of realized tax deductions in excess of previously recognized tax benefits on compensation expense. In accordance with SEC Staff Accounting Bulletin (“SAB”) No. 107, the Company classified share-based compensation for employees and outside directors within “compensation and employee benefits” in the Consolidated Statements of Operations to correspond with the same line item as the cash compensation paid. Stock options generally vest over a five-year service period and expire ten years from issuance. Management recognizes compensation expense for all option grants over the awards’ respective requisite service periods. The fair values of all option grants were estimated using the Black-Scholes option-pricing model. Since there was limited historical information on the volatility of the Company’s stock, management also considered the average volatilities of similar entities for an appropriate period in determining the assumed volatility rate used in the estimation of fair value. Management estimated the expected life of the options using the simplified method allowed under SAB No. 107. The 7-year Treasury yield in effect at the time of the grant provided the risk-free rate for periods within the contractual life of the option. Management recognizes compensation expense for the fair values of these awards, which have graded vesting, on a straight-line basis over the requisite service period of the awards. Once vested, these awards are irrevocable. Shares will be obtained from either the open market or treasury stock upon share option exercise. Restricted shares generally vest over a five-year service period on the anniversary of the grant date. Once vested, these awards are irrevocable. The product of the number of shares granted and the grant date market price of the Company’s common stock determine the fair value of restricted shares under the Company’s restricted stock plans. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period. The following is a summary of the status of the Company’s stock option activity and related information for its option plan for the two-year period ended September 30, 2016: Weighted Weighted Average Aggregate Number of Average Remaining Intrinsic Stock Options Exercise Price Contractual Life Value Balance at September 30, 2014 188,276 $ 14.61 2.4 years $ — Granted — — Exercised — — Forfeited — — Balance at September 30, 2015 188,276 14.61 1.4 years $ — Granted — — Exercised — — Forfeited — — Balance at September 30, 2016 188,276 $ 14.61 0.4 years $ — Exercisable at September 30, 2016 188,276 $ 14.61 0.4 years $ — No stock options were granted or exercised during the years ended September 30, 2016 and 2015. The following is a summary of the status of the Company’s non-vested restricted shares as of September 30, 2016 and 2015, and changes during those years: Weighted Average Number of Grant Date Stock Awards Fair Value Balance at September 30, 2014 5,302 $ 4.41 Granted — — Vested (4,050 ) 4.50 Forfeited — — Balance at September 30, 2015 1,252 4.30 Granted — — Vested (1,252 ) 4.30 Forfeited — — Balance at September 30, 2016 — $ — There were no stock option expenses for the year ended September 30, 2016, and 2015. Stock award expenses included with compensation expense were $3,000 and $12,000 for the years ended September 30, 2016, and 2015, respectively. The Company had no other stock-based compensation plans as of September 30, 2016 except as disclosed below. On April 27, 2007 the Company announced its first stock repurchase program and authorized the repurchase of up to 5% of its publicly-held outstanding shares of common stock, or approximately 130,927 shares. The Company completed its first stock repurchase program of 130,927 shares in November 2007 and announced a second repurchase program of up to 5% of its publicly-held outstanding shares of common stock, or 129,924 shares in November 2007. Pursuant to the second repurchase program, the Company had repurchased 81,000 shares of its common stock at an average cost of $8.33 per share through September 30, 2016, leaving 48,924 shares available for repurchase. The Company has an Employee Stock Ownership Plan ("ESOP") for the benefit of employees who meet the eligibility requirements as defined in the plan. The ESOP trust purchased 217,863 shares of common stock in the open market using proceeds of a loan from the Company. The total cost of shares purchased by the ESOP trust was $2.3 million, reflecting an average cost per share of $10.58. The Bank will make cash contributions to the ESOP on an annual basis sufficient to enable the ESOP to make the required loan payments to the Company. The loan bears a variable interest rate that adjusts annually to Prime Rate (3.50% at January 1, 2016) with principal and interest payable annually in equal installments over thirty years. The loan is secured by shares of the Company’s stock. As the debt is repaid, shares are released as collateral and allocated to qualified employees. Accordingly, the shares pledged as collateral are reported as unearned ESOP shares in the Consolidated Balance Sheets. The Company accounts for its ESOP in accordance with FASB ASC Topic 718, “Employer’s Accounting for Employee Stock Ownership Plans”. As shares are released from collateral, the Company reports compensation expense equal to the current market price of the shares, and the shares become outstanding for earnings per share computations. The Company's contribution expense for the ESOP was $122,000 and $111,000 for years ended September 30, 2016 and 2015, respectively. The following table presents the components of the ESOP shares as of September 30, 2016: Unreleased shares at September 30, 2015 76,982 Shares released for allocation during the year ended September 30, 2016 (12,445 ) Unreleased shares at September 30, 2016 64,537 Total released shares 153,326 Total ESOP shares 217,863 The aggregate fair value of the unreleased shares at September 30, 2016 was approximately $651,000. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE D - INVESTMENT SECURITIES The amortized cost, gross unrealized gains or losses and fair value of the Company’s investment securities available-for-sale and held-to-maturity are as follows: September 30, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available-for-sale: Obligations of U.S. government agencies: Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential $ 5,075 $ 52 $ — $ 5,127 Private label mortgage-backed securities-residential 108 — (1 ) 107 Total securities available for sale $ 5,183 $ 52 $ (1 ) $ 5,234 September 30, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities held-to-maturity: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 4,383 $ 171 $ (90 ) $ 4,464 Mortgage-backed securities - commercial 1,034 — (1 ) 1,033 Obligations of U.S. government-sponsored enterprises: Mortgage backed securities - residential 40,024 1,098 (16 ) 41,106 Debt securities 4,000 1 — 4,001 Private label mortgage-backed securities - residential 493 — (6 ) 487 Corporate securities 3,000 — (242 ) 2,758 Total securities held to maturity $ 52,934 $ 1,270 $ (355 ) $ 53,849 At September 30, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available-for-sale: Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential $ 5,839 $ 82 $ (7 ) $ 5,914 Private label mortgage-backed securities-residential 151 — (1 ) 150 Total securities available-for-sale $ 5,990 $ 82 $ (8 ) $ 6,064 At September 30, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities held-to-maturity: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 5,414 $ 156 $ (99 ) $ 5,471 Mortgage-backed securities - commercial 1,101 — (2 ) 1,099 Obligations of U.S. government-sponsored enterprises: Mortgage backed securities - residential 37,563 647 (67 ) 38,143 Debt securities 5,000 2 (25 ) 4,977 Private label mortgage-backed securities - residential 536 1 (1 ) 536 Corporate securities 3,000 22 — 3,022 Total securities held-to-maturity $ 52,614 $ 828 $ (194 ) $ 53,248 The contractual maturities of mortgage-backed securities generally exceed 10 years; however, the effective lives are expected to be shorter due to anticipated prepayments. The amortized cost and fair value of the Company’s securities available-for-sale at September 30, 2016 are summarized in the following table: September 30, 2016 (In thousands) Amortized Fair Cost Value Due within 1 year $ — $ — Due after 1 but within 5 years — — Due after 5 but within 10 years — — Due after 10 years — — Total debt securities — — Mortgage-backed securities: Residential (1) 5,183 5,234 Commercial — — Total $ 5,183 $ 5,234 (1) Available-for-sale mortgage-backed securities – residential include an amortized cost of $5.1 million and a fair value of $5.1 million for obligations of U.S. government-sponsored enterprises issued by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Also included are residential mortgage backed securities issued by non-U.S. government agencies and government-sponsored enterprises with an amortized cost of $108,000 and fair value of $107,000. The maturities of the debt securities and the mortgage-backed securities held to maturity at September 30, 2016 are summarized in the following table: September 30, 2016 Amortized Fair Cost Value (In thousands) Due within 1 year $ — $ — Due after 1 but within 5 years 2,000 2,000 Due after 5 but within 10 years 5,000 4,759 Due after 10 years — — Total debt securities 7,000 6,759 Mortgage backed securities: Residential (1) 44,900 46,057 Commercial (2) 1,034 1,033 Total $ 52,934 $ 53,849 (1) Held-to-maturity mortgage-backed securities – residential include an amortized cost of $4.4 million and a fair value of $4.5 million for obligations of U.S. government agencies issued by the Government National Mortgage Association and obligations of U.S. government-sponsored enterprises issued by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation which had an amortized cost of $40.0 million and a fair value of $41.1 million. Also included are mortgage backed securities issued by non-U.S. government agencies and government-sponsored enterprises with an amortized cost of $493,000 and a fair value of $487,000. (2) Held-to-maturity mortgage-backed securities – commercial include an amortized cost of $1.0 million and a fair value of $1.0 million for obligations of U.S. government agencies issued by the Small Business Administration. There were sales of $6.3 million and $5.4 million from the available-for-sale portfolios during the years ended September 30, 2016 and 2015, respectively. The gross gains on sales of the available-for-sale securities totaled $72,000 and $42,000 for the year ended September 30, 2016 and 2015, respectively. There were no sales of securities from the held-to-maturity portfolios during the years ended September 30, 2016 and 2015. As of September 30, 2016 and 2015, securities having an estimated fair value of approximately $27.8 million and $27.0 million, respectively, were pledged to secure public deposits. Details of securities with unrealized losses at September 30, 2016 and 2015 are as follows: September 30, 2016 Less Than 12 Months 12 Months Or Greater Total Number of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses (Dollars in thousands) Obligations of U.S. government agencies: Mortgage-backed securities - residential 2 $ — $ — $ 849 $ (90 ) $ 849 $ (90 ) Mortgage-backed securities - commercial 1 1,033 (1 ) — — 1,033 (1 ) Obligations of U.S. government-sponsored enterprises Mortgage-backed securities - residential 2 1,376 (3 ) 1,942 (13 ) 3,318 (16 ) Private label mortgage-backed securities residential 3 172 (4 ) 330 (3 ) 502 (7 ) Corporate securities 1 — — 2,758 (242 ) 2,758 (242 ) Total 9 $ 2,581 $ (8 ) $ 5,879 $ (348 ) $ 8,460 $ (356 ) September 30, 2015 Less Than 12 Months 12 Months Or Greater Total Number of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses (Dollars in thousands) Obligations of U.S. government agencies: Mortgage-backed securities- residential 3 $ — $ — $ 2,254 $ (99 ) $ 2,254 $ (99 ) Mortgage-backed securities - commercial 1 1,099 (2 ) — — 1,099 (2 ) Obligations of U.S. government-sponsored enterprises Mortgage backed securities- residential 7 4,424 (34 ) 8,688 (40 ) 13,112 (74 ) Debt securities 1 — — 1,975 (25 ) 1,975 (25 ) Private label mortgage-backed securities- residential 2 — — 223 (2 ) 223 (2 ) Total 14 $ 5,523 $ (36 ) $ 13,140 $ (166 ) $ 18,663 $ (202 ) The investment securities listed above currently have fair values less than amortized cost and therefore contain unrealized losses. The Company evaluated these securities and determined that the decline in value was primarily related to fluctuations in the interest rate environment and were not related to any company or industry specific event. The Company anticipates full recovery of amortized costs with respect to these securities. The Company does not intend to sell these securities and has determined that it is not more likely than not that the Company would be required to sell these securities prior to maturity or market price recovery. Management has considered factors regarding other than temporarily impaired securities and determined that there are no securities with impairment that is other than temporary as of September 30, 2016 and 2015. |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 12 Months Ended |
Sep. 30, 2016 | |
Loans Receivable, Net [Abstract] | |
LOANS RECEIVABLE, NET | NOTE E - LOANS RECEIVABLE, NET Loans receivable are comprised of the following: September 30, September 30, 2016 2015 (In thousands) One-to four-family residential $ 173,235 $ 169,781 Commercial real estate 199,510 173,864 Construction 14,939 6,679 Home equity lines of credit 21,967 21,176 Commercial business 38,865 41,485 Other 9,355 10,305 Total loans receivable 457,871 423,290 Net deferred loan costs 216 192 Allowance for loan losses (3,056 ) (2,886 ) Total loans receivable, net $ 455,031 $ 420,596 Certain directors and executive officers of the Company have loans with the Bank. Such loans were made in the ordinary course of business at the Bank’s normal credit terms, including interest rate and collateralization, and do not represent more than a normal risk of collection. Total loans receivable from directors and executive officers, and affiliates thereof, were approximately $4.5 million and $4.6 million at September 30, 2016 and 2015, respectively. Total principal additions were approximately $290,000 and $1.9 million at September 30, 2016 and 2015, respectively. Total principal repayments were approximately $463,000 and $1.3 million for the year ended September 30, 2016 and 2015, respectively. At September 30, 2016 and 2015, the Company was servicing loans for others amounting to approximately $40.3 million and $32.8 million, respectively. The Company held mortgage servicing rights in the amount of $97,000 and $132,000 at September 30, 2016 and 2015, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors, and foreclosure processing. Loan servicing income is recorded on the cash basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees. In connection with loans serviced for others, the Company held borrowers’ escrow balances of approximately $114,000 and $130,000 at September 30, 2016 and 2015, respectively. The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The residential mortgage loan segment is further disaggregated into two classes: amortizing term loans, which are primarily first liens, and home equity lines of credit, which are generally second liens. The commercial loan segment is further disaggregated into three classes. Commercial real estate loans include loans secured by multifamily structures, owner-occupied commercial structures, and non-owner occupied nonresidential properties. The construction loan segment consists primarily of developers or investors for the purpose of acquiring, developing and constructing residential or commercial structures and to a lesser extent one-to-four family residential construction loans made to individuals for the acquisition of and/or construction on a lot or lots on which a residential dwelling is to be built. Construction loans to developers and investors have a higher risk profile because the ultimate buyer, once development is completed, is generally not known at the time of the loan. The commercial business loan segment consists of loans made for the purpose of financing the activities of commercial customers and consists primarily of revolving lines of credit. The consumer loan segment consists primarily of stock-secured installment loans, but also includes unsecured personal loans and overdraft lines of credit connected with customer deposit accounts. Management evaluates individual loans in all segments for possible impairment if the loan either is in nonaccrual status, or is risk rated Substandard and is greater than 90 days past due. Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Once the determination has been made that a loan is impaired, the recorded investment in the loan is compared to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s current observable market price; or (c) the fair value of the collateral securing the loan, less anticipated selling and disposition costs. The method is selected on a loan-by loan basis, with management primarily utilizing the fair value of collateral method. If there is a shortfall between the fair value of the loan and the recorded investment in the loan, the Company charges the difference to the allowance for loan loss as a charge-off and carries the impaired loan on its books at fair value. It is the Company’s policy to evaluate impaired loans on an annual basis to ensure the recorded investment in a loan does not exceed its fair value. The following tables present impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary for the periods presented: Impaired Loans Impaired Loans with with No Specific Specific Allowance Allowance Total Impaired Loans Unpaid At and for the year ended Recorded Related Recorded Recorded Principal September 30, 2016 Investment Allowance Investment Investment Balance (In thousands) One-to four-family residential $ — $ — $ 4,010 $ 4,010 $ 4,239 Commercial real estate — — 3,843 3,843 3,843 Home equity lines of credit — — 153 153 167 Commercial business 997 39 250 1,247 1,850 Total impaired loans $ 997 $ 39 $ 8,256 $ 9,253 $ 10,099 Impaired Loans Impaired Loans with with No Specific Specific Allowance Allowance Total Impaired Loans Unpaid At and for the year ended Recorded Related Recorded Recorded Principal September 30, 2015 Investment Allowance Investment Investment Balance (In thousands) One-to four-family residential $ — $ — $ 3,017 $ 3,017 $ 3,134 Commercial real estate — — 5,447 5,447 6,556 Home equity lines of credit — — 417 417 521 Commercial business 1,690 201 66 1,756 1,756 Total impaired loans $ 1,690 $ 201 $ 8,947 $ 10,637 $ 11,967 The average recorded investment in impaired loans was $10.0 million and $14.8 million for the years ended September 30, 2016 and 2015, respectively. During the years ended September 30, 2016 and 2015, no interest income was recognized while the loans were impaired, and no interest income was recognized using the cash basis method of accounting while these loans were impaired. The following tables present the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the Bank’s internal risk rating system for the periods presented: Special Pass Mention Substandard Doubtful Total (In thousands) September 30, 2016 One-to four-family residential $ 169,596 $ 209 $ 3,430 $ — $ 173,235 Commercial real estate 196,838 — 2,672 — 199,510 Construction 12,461 — 2,478 — 14,939 Home equity lines of credit 21,814 — 153 — 21,967 Commercial business 37,868 — — 997 38,865 Other 9,355 — — — 9,355 Total $ 447,932 $ 209 $ 8,733 $ 997 $ 457,871 Special Pass Mention Substandard Doubtful Total (In thousands) September 30, 2015 One-to four-family residential $ 166,846 $ — $ 2,935 $ — $ 169,781 Commercial real estate 169,239 210 3,309 1,106 173,864 Construction 2,468 — 4,211 — 6,679 Home equity lines of credit 19,436 — 1,740 — 21,176 Commercial business 39,764 — 1,721 — 41,485 Other 10,305 — — — 10,305 Total $ 408,058 $ 210 $ 13,916 $ 1,106 $ 423,290 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans for the periods presented: 30-59 60-89 Days Days 90 Days + Total Non- Total Current Past Due Past Due Past Due Past Due Accrual Loans (In thousands) September 30, 2016 One-to four-family residential $ 170,705 $ — $ 44 $ 2,486 $ 2,530 $ 2,486 $ 173,235 Commercial real estate 198,577 — 490 443 933 443 199,510 Construction 14,939 — — — — — 14,939 Home equity lines of credit 21,686 — — 281 281 281 21,967 Commercial business 37,865 — 3 997 1,000 997 38,865 Other 9,355 — — — — — 9,355 Total $ 453,127 $ — $ 537 $ 4,207 $ 4,744 $ 4,207 $ 457,871 30-59 60-89 Days Days 90 Days + Total Non- Total Current Past Due Past Due Past Due Past Due Accrual Loans (In thousands) September 30, 2015 One-to four-family residential $ 166,993 $ — $ 730 $ 2,058 $ 2,788 $ 2,058 $ 169,781 Commercial real estate 171,969 — — 1,895 1,895 1,895 173,864 Construction 6,679 — — — — — 6,679 Home equity lines of credit 20,921 — — 255 255 255 21,176 Commercial business 39,777 — 19 1,689 1,708 1,689 41,485 Other 10,305 — — — — — 10,305 Total $ 416,644 $ — $ 749 $ 5,897 $ 6,646 $ 5,897 $ 423,290 The amount of interest income not recognized on non-accrual loans was approximately $217,000 and $356,000 for the years ended September 30, 2016 and 2015, respectively. At September 30, 2016 and September 30, 2015, there were no commitments to lend additional funds to borrowers whose loans are classified as non-accrual. An allowance for loan losses (“ALL”) is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of NPLs. The Bank’s methodology for determining the ALL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative and economic factors. The loans are segmented into classes based on their inherent varying degrees of risk, as described above. Management tracks the historical net charge-off activity by segment and utilizes this figure, as a percentage of the segment, as the general reserve percentage for pooled, homogenous loans that have not been deemed impaired. Typically, an average of losses incurred over 5 historical years is used. Non-impaired credits are segregated for the application of qualitative factors. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources are: national and local economic trends and conditions; levels of and trends in delinquency rates and non-accrual loans; trends in volumes and terms of loans; effects of changes in lending policies; experience, ability, and depth of lending staff; value of underlying collateral; and concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. Since loans individually evaluated for impairment are promptly written down to their fair value, typically there is no portion of the ALL for loans individually evaluated for impairment. The following tables summarize the activity in the allowance for loan losses by loan category for the years ended September 30, 2016 and 2015: One-to Four- Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (In thousands) Balance-September 30, 2015 $ 395 $ 931 $ 453 $ 53 $ 969 $ 6 $ 79 $ 2,886 Charge-offs (133 ) (61 ) — (98 ) (1,119 ) — — (1,411 ) Recoveries — 100 7 80 28 — — 215 Provision 280 105 (99 ) 36 1,098 3 (57 ) 1,366 Balance-September 30, 2016 $ 542 $ 1,075 $ 361 $ 71 $ 976 $ 9 $ 22 $ 3,056 One-to Four- Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (In thousands) Balance-September 30, 2014 $ 402 $ 826 $ 784 $ 62 $ 643 $ 9 $ 109 $ 2,835 Charge-offs (176 ) (397 ) (342 ) (461 ) (274 ) (1 ) — (1,651 ) Recoveries 400 — 38 — — — — 438 Provision (231 ) 502 (27 ) 452 600 (2 ) (30 ) 1,264 Balance-September 30, 2015 $ 395 $ 931 $ 453 $ 53 $ 969 $ 6 $ 79 $ 2,886 The following tables summarize the ALL by loan category, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2016 and September 30, 2015: One-to Four- Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (In thousands) Allowance for Loan Losses: Balance - September 30, 2016 $ 542 $ 1,075 $ 361 $ 71 $ 976 $ 9 $ 22 $ 3,056 Individually evaluated for impairment — — — — 39 — — 39 Collectively evaluated for impairment 542 1,075 361 71 937 9 22 3,017 Loans receivable: Balance - September 30, 2016 $ 173,235 $ 199,510 $ 14,939 $ 21,967 $ 38,865 $ 9,355 $ — $ 457,871 Individually evaluated for impairment 4,010 3,843 — 153 1,247 — — 9,253 Collectively evaluated for impairment 169,225 195,667 14,939 21,814 37,618 9,355 448,618 One-to Four- Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (In thousands) Allowance for Loan Losses: Balance - September 30, 2015 $ 395 $ 931 $ 453 $ 53 $ 969 $ 6 $ 79 $ 2,886 Individually evaluated for impairment — — — — 201 — — 201 Collectively evaluated for impairment 395 931 453 53 768 6 79 2,685 Loans receivable: Balance - September 30, 2015 $ 169,781 $ 173,864 $ 6,679 $ 21,176 $ 41,485 $ 10,305 — $ 423,290 Individually evaluated for impairment 3,017 5,447 — 417 1,756 — — 10,637 Collectively evaluated for impairment 166,764 168,417 6,679 20,759 39,729 10,305 412,653 The allowance for loan losses is based on estimates, and actual losses will vary from current estimates. Management believes that the segmentation of the loan portfolio into homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. The Bank has adopted FASB issue ASU No. 2011-02 on the determination of whether a loan restructuring is considered to be a Troubled Debt Restructuring (“TDR”). A TDR is a loan that has been modified whereby the Bank has agreed to make certain concessions to a borrower to meet the needs of both the borrower and the Bank to maximize the ultimate recovery of a loan. TDR occurs when a borrower is experiencing, or is expected to experience, financial difficulties and the loan is modified using a modification that would otherwise not be granted to the borrower. The types of concessions granted generally included, but are not limited to interest rate reductions, limitations on the accrued interest charged, term extensions, and deferment of principal. There were no TDRs during the year ended September , 2016. The following tables summarize the TDRs during the twelve month periods ended , 2016 and 2015: Year Ended September 30, 2015 Number of Investment Before Investment After Loans TDR Modification TDR Modification (Dollars in thousands) One-to four-family residential — $ — $ — Total — $ — $ — Year Ended September 30, 2015 Number of Investment Before Investment After Loans TDR Modification TDR Modification (Dollars in thousands) One-to four-family residential 2 $ 650 $ 713 Total 2 $ 650 $ 713 A default on a TDR loan for purposes of this disclosure occurs when a borrower is 90 days past due or a foreclosure or repossession of the applicable collateral has occurred. During the year ended September 30, 2016, no defaults occurred on troubled debt restructured loans that were modified as a TDR loans. The Company held interest-only mortgage loans with principal balances of $8.6 million and $12.6 million at September 30, 2016 and 2015, respectively. The average interest-only term on these loans is 10 years at which time these loans reset to fully amortize over 20 years, on average. As these loans are collateralized by residential real estate with an average original loan-to-value of 69.4%, management does not anticipate any losses on these loans as of September 30, 2016. Total loans pledged as collateral against Federal Home Loan Bank of New York borrowings was $109.4 million and $93.9 million as of September 30, 2016 and 2015, respectively. |
ACCRUED INTEREST RECEIVABLE
ACCRUED INTEREST RECEIVABLE | 12 Months Ended |
Sep. 30, 2016 | |
Interest Receivable and Other Assets [Abstract] | |
ACCRUED INTEREST RECEIVABLE | NOTE F - ACCRUED INTEREST RECEIVABLE The following is a summary of accrued interest receivable: September 30, 2016 2015 (In thousands) Loans $ 1,548 $ 1,543 Investment securities 57 57 Mortgage-backed securities 105 103 Total accrued interest receivable $ 1,710 $ 1,703 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | NOTE G - PREMISES AND EQUIPMENT Premises and equipment consist of the following: Estimated September 30, Useful Lives 2016 2015 (Dollars in thousands) Land Indefinite $ 3,811 $ 3,811 Buildings and improvements 10-40 years 22,341 21,449 Furniture, fixtures and equipment 5-10 years 2,878 2,828 29,030 28,088 Less accumulated depreciation (10,946 ) (10,270 ) $ 18,084 $ 17,818 For the years ended September 30, 2016 and 2015, depreciation expense included in occupancy expense amounted to approximately $778,000 and $845,000, respectively. Hungaria Urban Renewal, LLC was formed in 2002 and its sole purpose was to purchase the land and construct the office building for which the Company is the primary tenant. The Bank owns a 100% interest in Hungaria Urban Renewal, LLC, which has no other business other than owning the Bank’s main office site. At September 30, 2016, Hungaria Urban Renewal, LLC accounted for approximately $3.1 million, $10.0 million and $0 of land, building, furniture, fixtures and equipment, net of depreciation, respectively. At September 30, 2015, Hungaria Urban Renewal, LLC accounted for approximately $3.1 million, $10.3 million, and $0 of land, building, and furniture, fixtures and equipment, net of depreciation, respectively. |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Sep. 30, 2016 | |
OTHER REAL ESTATE OWNED [Abstract]. | |
OTHER REAL ESTATE OWNED | NOTE H - OTHER REAL ESTATE OWNED The Company held $12.1 million of real estate owned properties at September 30, 2016 and $16.2 million at September 30, 2015. The Company incurred write-downs totaling $301,000 and $66,000 on these properties for the years ended September 30, 2016 and 2015; these amounts were carried as valuation allowances at September 30, 2016 and 2015, respectively. Further declines in real estate values may result in increased foreclosed real estate expense in the future. Routine holding costs are charged to expense as incurred and improvements to real estate owned that enhance the value of the real estate are capitalized. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Sep. 30, 2016 | |
Deposits [Abstract] | |
DEPOSITS | NOTE I - DEPOSITS A summary of deposits by type of account follows: September 30, 2016 2015 (In thousands) Demand accounts $ 94,462 $ 87,915 Savings accounts 100,706 90,196 NOW accounts 49,045 41,457 Money market accounts 114,458 103,593 Certificate of deposit 114,355 122,088 Retirement accounts 19,624 21,020 $ 492,650 $ 466,269 The current FDIC insurance limit on bank deposit accounts is $250,000. The aggregate amount of deposit accounts with a minimum denomination of $250,000 was approximately $223.1 million at September 30, 2016. The aggregate amount of certificate deposits, including individual retirement accounts with balance of $250,000 or more was $30.1 million at September 30, 2016. At September 30, 2016, certificates of deposit (including retirement accounts and brokered certificate deposit accounts) have contractual maturities as follows (in thousands): Year Ending September 30, 2017 $ 56,493 2018 33,308 2019 27,600 2020 5,080 2021 and after 11,498 $ 133,979 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE J - BORROWINGS 1. Federal Home Loan Bank of New York Advances Long term Federal Home Loan Bank of New York (“FHLBNY”) advances at September 30, 2016 and September 30, 2015 totaled approximately $36.0 million and $31.6 million, respectively. The weighted average interest rate on advances outstanding at September 30, 2016 and 2015 were 2.12% and 2.38%, respectively. The advances were collateralized by unencumbered qualified assets consisting of one-to-four family residential mortgage loans and investment securities. Advances are made pursuant to several different credit programs offered from time to time by the FHLBNY. Long term FHLBNY advances as of September 30, 2016 mature as follows (in thousands): Year Ending September 30, 2017 $ 5,000 2018 5,100 2019 8,940 2020 10,294 2021 2,500 Thereafter 4,206 $ 36,040 Additionally, the Company has established an Overnight Line of Credit arrangement with the FHLBNY. The total amount available under the line of credit is based on the amount of eligible collateral pledged to the FHLBNY. At September 30, 2016 and 2015, the Company had available credit from the FHLBNY totaling $49.1 million and $39.8 million, respectively. Information concerning short-term borrowings with the FHLBNY is summarized as follows: September 30, 2016 2015 (Dollars in thousands) Balance at end of year $ — $ — Weighted average balance during the year $ 1,080 $ 2,958 Maximum month-end balance during the year $ 16,200 $ 18,500 Average interest rate during the year 0.56% 0.37% 2. Securities Sold Under Reverse Repurchase Agreements Qualifying repurchase agreements are treated as financings and are reflected as a liability in the Consolidated Balance Sheets. The Company did not have repurchase agreements outstanding at September 30, 2016 and September 30, 2015. |
SERVICING POLICY
SERVICING POLICY | 12 Months Ended |
Sep. 30, 2016 | |
Transfers and Servicing [Abstract] | |
SERVICING POLICY | NOTE K – SERVICING POLICY The Company originates and sells loans receivable secured by one-to four-family residential properties and commercial business loans guaranteed by the Small Business Administration (the “SBA”). The Company has sold loans on a servicing retained basis and on a servicing released basis. Loans sold with servicing retained and servicing released during the year ended September 30, 2016 were $9.2 million and $0, respectively. Loans sold with servicing retained and servicing released during the year ended September 30, 2015 were $9.7 million and $0, respectively. The Company accounts for sales in accordance with ASC 860, Transfers and Servicing. Upon sale, the receivables are removed from the balance sheet, mortgage servicing rights are recorded as an asset for servicing rights retained, and a gain on sale, if applicable, is recognized for the difference between the carrying value of the receivables and the sales proceeds, net of origination costs. Gains on sales of loans, representing the difference between the total sales price received for the loans and the allocated cost of the loans, are recognized when mortgage loans are sold and delivered to the purchasers. Loans are accounted for as sold when control of the mortgage is surrendered. Control over the mortgage loans is deemed surrendered when (1) the mortgage loans have been isolated from the Company, (2) the buyer has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the mortgage loans and (3) the Company does not maintain effective control over the mortgage loans through either (a) an agreement that entitles and obligates the Company to repurchase or redeem the mortgage loans before maturity, or (b) the ability to unilaterally cause the buyer to return specific mortgage loans. The Company services one-to-four family residential mortgage loans for investors in the secondary mortgage market, which are not included in the Consolidated Balance Sheets. The Company’s fee is a percentage of the principal balance and is recognized as income when received. At September 30, 2016 and 2015, the Company was servicing such sold loans in the amount of $11.8 million and $13.8 million, respectively. Loan servicing includes collecting and remitting loan payments, accounting for principal and interest, contacting delinquent mortgagors, supervising foreclosures and property dispositions in the event of unremedied defaults, making certain insurance and tax payments on behalf of the borrowers and generally administering the loans. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing revenues and are included in other assets on the Consolidated Balance Sheets. Activity in mortgage servicing rights during the years ended September 30, 2016 and 2015 are summarized as follows: September 30, 2016 2015 (In thousands) Beginning balance $ 132 $ 175 Origination of mortgage servicing rights — 20 Amortization (35 ) (63 ) Ending balance $ 97 $ 132 Mortgage servicing rights are carried at the lower of amortized cost or fair value. Fair values are estimated using discounted cash flows based on a current market interest rate. The Company also services the SBA guaranteed portion of commercial business loans sold to investors in the secondary market, which are not included in the Consolidated Balance Sheets. The Company’s fee is a percentage of the principal balance and is recognized as income when received. At September 30, 2016 and 2015, the Company was servicing SBA loans sold in the amount of $20.3 million and $14.6 million, respectively. Loan servicing includes collecting and remitting loan payments, accounting for principal and interest, contacting delinquent mortgagors, supervising foreclosures and property dispositions in the event of unremedied defaults, making certain insurance and tax payments on behalf of the borrowers and generally administering the loans. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE L - INCOME TAXES The income tax expense is comprised of the following components for the years ended September 30, 2016 and 2015: September 30, 2016 2015 (In thousands) Current $ 59 $ 10 Deferred 605 403 Total income tax expense $ 664 $ 413 A reconciliation of income tax at the statutory tax rate to the effective income tax expense for the years ended September 30, 2016 and 2015 is as follows: September 30, 2016 2015 (In thousands) Income tax expense at statutory rate $ 596 $ 445 Increase (decrease) resulting from: State income taxes, net of federal income tax benefit 161 69 Tax-exempt income, net (96 ) (99 ) Nondeductible expenses 5 3 Employee stock ownership plan (3 ) (7 ) Other, net 1 2 Total income tax expense $ 664 $ 413 The major sources of temporary differences and their deferred tax effect at September 30, 2016 and 2015 are as follows: September 30, 2016 2015 (In thousands) Allowance for loan losses $ 1,221 $ 1,153 Deferred loan fees 93 448 Employee benefits 82 168 Charitable contributions — 14 Net operating losses 1,670 1,938 Alternative minimum tax credit 252 243 Unrealized loss, minimum pension liability 793 696 OREO 317 307 Straight line rent 178 163 Gross deferred tax asset 4,606 5,130 Depreciation (1,443 ) (1,506 ) Discount accretion on investments (118 ) (117 ) Net unrealized gain, investment securities available-for-sale (18 ) (27 ) Mortgage servicing rights (39 ) (53 ) Gross deferred tax liability (1,618 ) (1,703 ) Net deferred tax asset 2,988 3,427 Valuation allowance (83 ) (20 ) Net deferred tax asset, included in other assets $ 2,905 $ 3,407 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences are deductible and carry forwards are available. Due to the uncertainty of the Company's ability to realize the benefit of certain deferred tax assets within statutory time limits, the net deferred tax assets are partially offset by a valuation allowance at September 30, 2016 and 2015. The net change in the valuation allowance for the year ended September 30, 2016 was a increase of approximately $63,000. This change was based upon management’s assessment of current and projected future operations. The Company has considered future market growth, forecasted earnings, future taxable income, feasible and permissible tax planning strategies in determining the realizability of deferred tax assets. If the Company was to determine that it would not be able to realize a portion of its net deferred tax asset in the future for which there is currently no valuation allowance, an adjustment to the net deferred tax asset would be charged to earnings in the period such determination was made. Conversely, if the Company was to make a determination that it is more likely than not that the deferred tax assets for which there is a valuation allowance would be realized, the related valuation allowance would be reduced and a benefit to earnings would be recorded. At September 30, 2016 the Company had approximately $4.0 million of federal and $5.4 million of state net operating losses carry forward available to offset future taxable income for tax reporting purposes. The federal and state net operating loss carry forward will begin to expire in 2029. At September 30, 2016, there was no valuation allowance against the Federal and State net operating loss carry forwards. In determining whether or not a valuation allowance was necessary for its federal and state net operating losses, the Company considered forecasted earnings, future taxable income, and tax planning strategies limited to the twelve months following September 30, 2016. Prior to 1996, savings banks that met certain definitions, tests and other conditions prescribed by the Internal Revenue Code were allowed to deduct, with limitations, a bad debt deduction computed as a percentage of taxable income before such deduction. Currently, the Company employs the direct charge-off method to account for bad debt. The company was required to switch from the reserve method because it now qualifies as a Large Bank as defined under Code Section 585, and is precluded from further using the reserve method. The Company is not required to provide a deferred tax liability for its tax loss reserve as of December 31, 1987 (the Base Year). The amount of this reserve on which no deferred taxes have been provided is approximately $1,258,000. This reserve could be recognized as taxable income and create a current and/or deferred tax liability using the income tax rates then in effect if one of the following occur: (1) the Company’s retained earnings represented by this reserve is used for purposes other than to absorb losses from bad debts, including dividends or distributions in liquidation, (2) the Company fails to meet the definitions, tests, or other conditions provided by the Internal Revenue Code for a qualified savings and loan association, or (3) there is a change in the Federal tax law. Deferred tax liabilities have been recorded for tax loss reserves in excess of book reserves recorded after the Base Year. |
PENSION PLAN
PENSION PLAN | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
PENSION PLAN | NOTE M - PENSION PLAN On January 26, 2006, the Company’s defined-benefit pension plan was frozen and amended to eliminate future benefit accruals after February 15, 2006. The Company had a noncontributory defined benefit pension plan (the “Plan”) covers all eligible employees. Plan assets are invested in six diversified investment funds of the Pentegra Retirement Trust (the “Trust”), a no load series open-ended mutual fund. The Trust has been given discretion by the Plan Sponsor to determine the appropriate strategic asset allocation versus plan liabilities, as governed by the Trust’s Statement of Investment Objectives and Guidelines (the Guidelines). The long-term investment objective is to be invested 65% in equity securities (equity mutual funds) and 35% in debt securities (bond mutual funds). If the Plan is underfunded under the Guidelines, the bond fund portion will be temporarily increased to 50% in order to lessen asset value volatility. When the Plan is no longer underfunded, the bond fund portion will be decreased back to 35%. Asset rebalancing is performed at least annually, with interim adjustments made when the investment mix varies more than 5% from the target (i.e., a 10% target range). Risk/volatility is further managed by the distinct investment objectives of each of the Trust funds and the diversification within each fund. The following table sets forth the Plan’s funded status and amounts recognized in the Company’s Consolidated Balance Sheets at September 30, 2016 and September 30, 2015. At September 30, 2016 2015 (In thousands) Actuarial present value of benefit obligations $ 4,779 $ 4,337 Change in benefit obligations Projected benefit obligation, beginning $ 4,337 $ 3,890 Interest cost 191 170 Actuarial loss 441 463 Annuity payments and lump sum distributions (190 ) (186 ) Projected benefit obligation, end $ 4,779 $ 4,337 Change in plan assets Fair value of assets, beginning $ 2,766 $ 2,860 Actual return on plan assets 251 (84 ) Employer contributions 124 176 Annuity payments and lump sum distributions (190 ) (186 ) Fair value of assets, end $ 2,951 $ 2,766 Funded status included with other liabilities $ (1,828 ) $ (1,571 ) Net pension cost for the years ended September 30, 2016 and 2015 included the following components: September 30, 2016 2015 (In thousands) Service cost benefits earned during the year $ — $ — Interest cost on projected benefit obligation 191 170 Expected return on plan assets (191 ) (198 ) Amortization of unrecognized net loss 139 75 Net pension cost $ 139 $ 47 For the year ended September 30, 2016, the weighted average discount rate used in determining the actuarial present value of the projected benefit obligation was 3.75%. For the year ended September 30, 2015, the weighted average discount rate used in determining the actuarial present value of the projected benefit obligation was 4.50%. The long-term rate-of-return-on-assets assumption was set based on historical returns earned by equities and fixed income securities, adjusted to reflect expectations of future returns as applied to the plan’s target allocation of asset classes. Equities and fixed income securities were assumed to earn rates of return in the ranges of 6-8% and 3-5% for the year ended September 30, 2016, respectively. When these overall return expectations are applied to the plan’s target allocation, the result is an expected rate of return of 5.0% to 7.0%. Accordingly, the expected long-term rate of return on assets was 7.00% for 2016 and 2015. Current Asset Allocation The Plan’s weighted-average asset allocations at September 30, 2016 and 2015, by asset category are as follows: September 30, 2016 2015 Equity securities 64% 62% Debt securities (bond mutual funds) 36% 37% Other (money market fund) 0% 1% Total 100% 100% The target asset allocation set for the assets of the Plan are in equity securities ranging from 40 percent to 70 percent and in debt securities ranging from 30 percent to 60 percent. In general, the Plan assets are investment securities that are well-diversified in terms of industry, capitalization and asset class. The Plan assets are mostly a mix of U.S. Treasury security indexed funds, mutual funds indexed to the performance of Fortune 500 U.S. companies, debt securities held in bond funds, domestic and foreign common equity funds, and a money market fund. The Plan’s exposure to a concentration of credit risk is limited by the diversification of the investments into various investment options with multiple asset managers. Expected Contributions For the fiscal year ending September 30, 2017, the Company expects to contribute $78,000 to the Plan. Estimated Future Benefit Payments The following benefit payments are expected to be paid as follows (in thousands): October 1, 2016 through September 30, 2017 $ 203 October 1, 2017 through September 30, 2018 204 October 1, 2018 through September 30, 2019 207 October 1, 2019 through September 30, 2020 209 October 1, 2020 through September 30, 2021 209 October 1, 2021 through September 30, 2026 1,136 $ 2,168 Included in the funded status of the Plan at September 30, 2016 and 2015, are actuarial losses of $1,984,000 and $1,742,000, respectively. These amounts are included, net of related income tax effects of $793,000 and $696,000, respectively, in the accumulated other comprehensive loss component of stockholders’ equity. During the year ending September 30, 2017, approximately $166,000 of the actuarial losses is expected to be amortized into net periodic pension expense. The following table presents the Plan assets that are measured at fair value on a recurring basis by level within the fair value hierarchy under ASC Topic 820. Financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. See Note R for further detail regarding fair value hierarchy. Fair Value Measurements at Reporting Date Using: Quoted Prices Significant in Active Markets Other Significant for Identical Observable Unobservable Total Assets (Level 1) Inputs (Level 2) Inputs (Level 3) (In thousands) At September 30, 2016 Investment Type Mutual Funds- Equity Large-Cap Value $ 400 $ 400 $ — $ — Large-Cap Core 414 414 — — Mid-Cap Core 198 198 — — Small-Cap Core 193 193 — — Non-U.S. Core 686 686 — — Mutual Funds- Fixed Income Intermediate-Term Core 1,055 1,055 — — Cash Equivalents Money Market 5 5 — — Total Investment $ 2,951 $ 2,951 $ — $ — At September 30, 2015 Investment Type Mutual Funds- Equity Large-Cap Value $ 351 $ 351 $ — $ — Large-Cap Core 366 366 — — Mid-Cap Core 180 180 — — Small-Cap Core 171 171 — — Non-U.S. Core 638 638 — — Mutual Funds- Fixed Income Intermediate-Term Core 1,020 1,020 — — Cash Equivalents Money Market 40 40 — — Total Investment $ 2,766 $ 2,766 $ — $ — Equity and debt securities are reported at fair value in the table above utilizing exchange quoted prices in active markets for identical instruments (Level 1 inputs). |
NONQUALIFIED COMPENSATION PLAN
NONQUALIFIED COMPENSATION PLAN | 12 Months Ended |
Sep. 30, 2016 | |
Postemployment Benefits [Abstract] | |
NONQUALIFIED COMPENSATION PLAN | NOTE N - NONQUALIFIED COMPENSATION PLAN The Company maintains a Supplemental Executive Retirement Plan (“SERP”) for the benefit of its senior officers. In addition, the Company also adopted voluntary Deferred Income and Emeritus Plans on behalf of its directors and those directors elected by the Board as “Director Emeritus.” The SERP provides the Company with the opportunity to supplement the retirement income of selected officers to achieve equitable wage replacement at retirement while the Deferred Income Plan provides participating directors with an opportunity to defer all or a portion of their fees into a tax deferred accumulation account for future retirement. The Director Emeritus Plan enables the Company to reward its directors for longevity of service in consideration of their availability and consultation. The SERP is based upon achieving retirement benefits equal to two percent multiplied by the number of service years multiplied by the final salary. In 2001, the Company adopted a New Director Emeritus Plan (the “New Plan”), which supplemented the prior Director Emeritus Plans. Under the New Plan, the directors will be entitled to a benefit upon attainment of his/her benefit age. The directors will receive an annual amount in monthly installments based on his/her total Board and Committee fees in the twelve months prior to attainment of his/her benefit age. The amount will be ten percent (10%) plus two and one-half percent (2 1/2%) for each year of service as a Director, with a minimum of fifty percent (50%), provided the Director has served for at least five (5) years, and a maximum of sixty percent (60%). The maximum benefit increases for any Director serving as Chairman of the Board to seventy-five percent (75%). The Company funds the plans through a modified endowment contract. Income recorded for the plans represents life insurance income as recorded based on the projected increases in cash surrender values of life insurance policies. As of September 30, 2016 and 2015, the Life Insurance Contracts had cash surrender values of approximately $11,257,000 and $10,962,000, respectively. The Company is recording benefit costs so that the cost of each participant’s retirement benefits is being expensed and accrued over the participant’s active employment so as to result in a liability at retirement date equal to the present value of the benefits expected to be provided. |
401(K) EMPLOYEE CONTRIBUTION PL
401(K) EMPLOYEE CONTRIBUTION PLAN | 12 Months Ended |
Sep. 30, 2016 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
401(K) EMPLOYEE CONTRIBUTION PLAN | NOTE O - 401(K) EMPLOYEE CONTRIBUTION PLAN The Company has a defined contribution 401(k) plan covering all employees, as defined under the plan document. Employees may contribute to the plan, as defined under the plan document, and the Company can make discretionary contributions. The Company contributed $108,000 and $93,000 to the plan for the years ended September 30, 2016 and 2015, respectively, and is included in compensation and employee benefits in the accompanying Consolidated Statements of Operations. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | NOTE P - COMMITMENTS 1. Lease Commitments Approximate future minimum payments under non-cancelable operating leases are due as follows for the years indicated (in thousands): 2017 $ 627 2018 627 2019 645 2020 651 2021 663 Thereafter 3,052 $ 6,265 Total rental expense, included in occupancy expense, was approximately $764,000 and $754,000 for the years ended September 30, 2016 and 2015, respectively. 2. Contingencies The Company and its subsidiaries, from time to time, are a party to routine litigation that arises in the normal course of business. In the opinion of management, the resolution of this litigation, if any, would not have a material adverse effect on the Company’s consolidated financial position or results of operations. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended |
Sep. 30, 2016 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | NOTE Q - FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK The Company may use derivative financial instruments, such as interest rate floors and collars, as part of its interest rate risk management. Interest rate caps and floors are agreements whereby one party agrees to pay or receive a floating rate of interest on a notional principal amount for a predetermined period of time if certain market interest rate thresholds are met. The Company considers the credit risk inherent in these contracts to be negligible. As of September 30, 2016 and 2015, the Company did not hold any interest rate floors or collars. The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the Consolidated Balance Sheets. The Company’s exposure to credit loss in the event of nonperformance by the other parties to the financial instrument for commitments to extend credits is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. At September 30, 2016 and 2015, the Company had outstanding commitments (substantially all of which expire within one year) to originate one-to four-family residential loans, construction loans, commercial real estate loans, commercial business loans and consumer loans. These commitments were comprised of fixed and variable rate loans. September 30, 2016 2015 (Dollars in thousands) Financial instruments whose contract amounts represent credit risk Letters of credit $ 306 $ 694 Unused lines of credit 45,888 45,039 Fixed rate loan commitments 5,272 1,597 Variable rate loan commitments 6,746 7,937 $ 58,212 $ 55,267 |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES | NOTE R - FAIR VALUE DISCLOSURES The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Company’s securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as held-to-maturity securities, mortgage servicing rights, loans receivable and other real estate owned, or OREO. These non-recurring fair value adjustments involve the application of lower-of-cost-or-market accounting or write-downs of individual assets. In accordance with ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), the Company groups its assets and liabilities at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1- Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2- Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3- Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. The Company bases its fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following is a description of valuation methodologies used for assets measured at fair value on a recurring basis. Securities available-for-sale The Company’s available-for-sale portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income/loss in stockholders’ equity. The securities available-for-sale portfolio consists of U.S. government and government-sponsored enterprise obligations, municipal bonds, and mortgage-backed securities. The fair values of these securities are obtained from an independent nationally recognized pricing service. An independent pricing service provides prices which are categorized as Level 2, as quoted prices in active markets for identical assets are generally not available for the securities. Derivative financial instruments The Company uses interest rate floors to manage its interest rate risk. The valuation of these instruments is based on a third party value of interest rate derivative contracts which are based on the fair market value using market prices provided from brokers trading in such instruments, less their carrying value. The carrying value is the price paid for the derivative contracts less prior amortization of the price paid. There are no derivative financial instruments at September 30, 2016 and 2015. The following table provides the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a recurring basis at September 30, 2016 and 2015: Fair Value at September 30, 2016 Total Level 1 Level 2 Level 3 (Dollars in thousands) Securities available for sale: Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential $ 5,127 $ — $ 5,127 $ — Private label mortgage-backed securities-residential 107 — 107 — Total securities available for sale $ 5,234 $ — $ 5,234 $ — Fair Value at September 30, 2015 Total Level 1 Level 2 Level 3 (Dollars in thousands) Securities available for sale: Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential $ 5,914 $ — $ 5,914 $ — Private label mortgage-backed securities-residential 150 — 150 — Total securities available for sale $ 6,064 $ — $ 6,064 $ — The following is a description of valuation methodologies used for assets measured at fair value on a non-recurring basis. Mortgage Servicing Rights Mortgage Servicing Rights (MSR’s) are carried at the lower of amortized cost or estimated fair value. The estimated fair value of MSRs is determined through a calculation of future cash flows, incorporating estimates of assumptions market participants would use in determining fair value including market discount rates, prepayment speeds, servicing income, servicing costs, default rates and other market driven data, including the market’s perception of future interest rate movements and, as such, are classified as Level 3. No valuation write-downs were made to MSR’s during the years ended September 30, 2016 and 2015. Impaired Loans Loans which meet certain criteria are evaluated individually for impairment. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. All amounts due according to the contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. Three impairment measurement methods are used, depending upon the collateral securing the asset: 1) the present value of expected future cash flows discounted at the loan’s effective interest rate (the rate of return implicit in the loan); 2) the asset’s observable market price; or 3) the fair value of the collateral if the asset is collateral dependent. The regulatory agencies require this method for loans from which repayment is expected to be provided solely by the underlying collateral. The Company’s impaired loans are generally collateral dependent and, as such, are carried at the estimated fair value of the collateral less estimated selling and disposition costs. Fair value is estimated through current appraisals, and adjusted as necessary, by management, to reflect current market conditions and, as such, are generally classified as Level 3. Appraisals of collateral securing impaired loans are conducted by approved, qualified, and independent third-party appraisers. Such appraisals are ordered via the Bank’s credit administration department, independent from the lender who originated the loan, once the loan is deemed impaired, as described in the previous paragraph. Impaired loans are generally re-evaluated with an updated appraisal within one year of the last appraisal. However, the Company also obtains updated appraisals on performing construction loans that are approaching their maturity date to determine whether or not the fair value of the collateral securing the loan remains sufficient to cover the loan amount prior to considering an extension. The Company discounts the appraised “as is” value of the collateral for estimated selling and disposition costs and compares the resulting fair value of collateral to the outstanding loan amount. If the outstanding loan amount is greater than the discounted fair value, the Company requires a reduction in the outstanding loan balance or additional collateral before considering an extension to the loan. If the borrower is unwilling or unable to reduce the loan balance or increase the collateral securing the loan, it is deemed impaired and the difference between the loan amount and the fair value of collateral, net of estimated selling and disposition costs, is charged off through a reduction of the allowance for loan loss. Other Real Estate Owned Other real estate owned is carried at lower of cost or estimated fair value less disposal costs. The estimated fair value of the real estate is determined through current appraisals, and adjusted as necessary, by management, to reflect current market conditions. As such, other real estate owned is generally classified as Level 3. Valuation write-downs totaling $301,000 were made to six properties held as other real estate owned during the year ended September 30, 2016. The properties were written down based on an updated appraisal of the real estate. The following tables provide the level of valuation assumptions used to determine the carrying value of our assets measured at fair value on a non-recurring basis at September 30, 2016 and 2015: Fair Value at September 30, 2016 Total Level 1 Level 2 Level 3 (In thousands) Impaired loans $ 958 $ — $ — $ 958 Other real estate owned 12,082 — — 12,082 $ 13,040 $ — $ — $ 13,040 Fair Value at September 30, 2015 Total Level 1 Level 2 Level 3 (In thousands) Impaired loans $ 1,489 $ — $ — $ 1,489 Other real estate owned 16,192 — — 16,192 $ 17,681 $ — $ — $ 17,681 Impaired loans reported for the period ended September 30, 2016 consisted of seven loans with aggregate loan balances of $3.1 million reduced by $848,000 in cumulative charge-offs and $39,000 in specific loss reserves. The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation September 30, 2016 Estimate Techniques Unobservable Input Range (Weighted Average) Impaired loans $ 958 Appraisal of collateral (1) Appraisal adjustments (2) -5.8% to -36.5% (-19.5%) Other real estate owned $ 12,082 Appraisal of collateral (1) Liquidation expenses (2) -3.9% to -41.6% (-22.4%) Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation September 30, 2015 Estimate Techniques Unobservable Input Range (Weighted Average) Impaired loans $ 1,489 Appraisal of collateral (1) Appraisal adjustments (2) -16.0% to -40.0% (-8.0%) Other real estate owned $ 16,192 Appraisal of collateral (1) Liquidation expenses (2) 0.0% to -41.2% (-15.1%) (1) Fair value is generally determined through independent appraisals for the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate fair value: Cash and interest earning deposits with banks: The carrying amounts are a reasonable estimate of fair value. Held to maturity securities: The fair values of Company’s held to maturity securities are obtained from an independent nationally recognized pricing service. The Company’s independent pricing service provides prices which are categorized as Level 2, as quoted prices in active markets for identical assets are generally not available for the securities. Loans receivable: Fair value for the loan portfolio, excluding impaired loans, is estimated based on discounted cash flow analysis using interest rates currently offered for loans with similar terms to borrowers of similar credit quality. Bank owned life insurance: The carrying amounts are based on the cash surrender values of the individual policies, which is a reasonable estimate of fair value. Deposits: The fair value of savings deposits with no stated maturity, such as money market deposit accounts, interest-bearing checking accounts and savings accounts, is equal to the amount payable on demand. The fair value of certificates of deposit including retirement accounts is based on the discounted value of contractual cash flows. The discount rate is equivalent to the rate currently offered by the Bank for deposits of similar size, type and maturity. Accrued interest receivable and payable: For these short-term instruments, the carrying amount is a reasonable estimate of fair value. Federal Home Loan Bank of New York advances: The fair value of borrowings is based on the discounted value of contractual cash flows. The discount rate is equivalent to the rate currently offered by the Federal Home Loan Bank of New York for borrowings of similar maturity and terms. Interest rate derivatives: The third party value of interest rate derivative contracts are based on the fair market value using market prices provided from brokers trading in such instruments, less their carrying value. The carrying value is the price paid for the derivative contracts less prior amortization of the price paid. The fair value of commitments to extend credit is estimated based on the amount of unamortized deferred loan commitment fees. The fair value of letters of credit is based on the amount of unearned fees plus the estimated cost to terminate the letters of credit. Fair values of unrecognized financial instruments including commitments to extend credit and the fair value of letters of credit are considered immaterial. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments carried at cost or amortized cost as of September 30, 2016 and September 30, 2015. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as interest-bearing demand, NOW, and money market savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. Carrying Fair Fair Value Measurement Placement Amount Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) September 30, 2016 Financial instruments - assets Investment securities held-to-maturity $ 52,934 $ 53,849 $ — $ 53,849 $ — Loans 455,031 462,868 — — 462,868 Financial instruments - liabilities Certificate of deposit 133,979 135,162 — 135,162 — Borrowings 36,040 36,473 — 36,473 — September 30, 2015 Financial instruments - assets Investment securities held-to-maturity $ 52,614 $ 53,248 $ — $ 53,248 $ — Loans 420,596 425,890 — — 425,890 Financial instruments - liabilities Certificate of deposit 143,108 144,150 — 144,150 — Borrowings 31,594 32,231 — 32,231 — |
REGULATORY CAPITAL
REGULATORY CAPITAL | 12 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY CAPITAL | NOTE S - REGULATORY CAPITAL The Company and Bank are required to maintain minimum amounts of capital to total “risk-weighted” assets, as defined by the banking regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Bank’s assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum ratios of Leverage Capital, Tier I and Total Risk-based Capital. The following table sets forth the Company’s and the Bank’s actual and required capital levels under those measures: To be well-capitalized For capital under prompt corrective Actual adequacy purposes action provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of September 30, 2016 Total Capital (to risk-weighted assets) Magyar Bancorp, Inc. $ 51,940 12.55% N/A N/A N/A N/A Magyar Bank $ 50,447 12.19% 33,099 ≥ 8.00% 41,374 ≥ 10.00% Tier 1 Capital (to risk-weighted assets) Magyar Bancorp, Inc. $ 48,884 11.82% N/A N/A N/A N/A Magyar Bank $ 47,391 11.45% 16,550 ≥ 4.00% 24,825 ≥ 6.00% Common Equity Tier 1 Capital (to risk-weighted assets) Magyar Bancorp, Inc. $ 48,884 11.82% N/A N/A N/A N/A Magyar Bank $ 47,391 11.45% 18,618 ≥ 4.50% 24,825 ≥ 6.00% Tier 1 Capital (to average assets) Magyar Bancorp, Inc. $ 48,884 8.53% N/A N/A N/A N/A Magyar Bank $ 47,391 8.27% 22,914 ≥ 4.00% 28,642 ≥ 5.00% As of September 30, 2015 Total Capital (to risk-weighted assets) Magyar Bancorp, Inc. $ 50,555 12.98% N/A N/A N/A N/A Magyar Bank $ 48,584 12.47% 31,158 ≥ 8.00% 38,947 ≥ 10.00% Tier 1 Capital (to risk-weighted assets) Magyar Bancorp, Inc. $ 47,669 12.24% N/A N/A N/A N/A Magyar Bank $ 45,698 11.73% 15,579 ≥ 4.00% 23,368 ≥ 6.00% Common Equity Tier 1 Capital (to risk-weighted assets) Magyar Bancorp, Inc. $ 47,669 12.24% N/A N/A N/A N/A Magyar Bank $ 45,698 11.73% 17,526 ≥ 4.50% 23,368 ≥ 6.00% Tier 1 Capital (to average assets) Magyar Bancorp, Inc. $ 47,669 8.75% N/A N/A N/A N/A Magyar Bank $ 45,698 8.39% 21,795 ≥ 4.00% 27,244 ≥ 5.00% The Bank has committed to the FDIC to maintain capital at or above the well capitalized level. |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Financial Statement Presentation | 1. Basis of Financial Statement Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (US GAAP) and predominant practices within the banking industry. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank, and its wholly-owned subsidiaries MagBank Investment Company, Magyar Service Corporation, and Hungaria Urban Renewal, LLC. All intercompany balances and transactions have been eliminated in the consolidated financial statements. The Company has evaluated subsequent events and transactions occurring subsequent to the consolidated balance sheet date of September 30, 2016, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. In preparing financial statements in conformity with US GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The principal estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses and the deferred tax asset. The evaluation of the adequacy of the allowance for loan losses includes an analysis of the individual loans and overall risk characteristics and size of the different loan portfolios, and takes into consideration current economic and market conditions, the capability of specific borrowers to pay specific loan obligations, as well as current loan collateral values. However, actual losses on specific loans, which also are encompassed in the analysis, may vary from estimated losses. The Company records income taxes using the asset and liability method. Accordingly, deferred tax assets and liabilities: (i) are recognized for the expected future tax consequences of events that have been recognized in the financial statements or tax returns; (ii) are attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases; and (iii) are measured using enacted tax rates expected to apply in the years when those temporary differences are expected to be recovered or settled. Where applicable, deferred tax assets are reduced by a valuation allowance for any portions determined not likely to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period of enactment. The valuation allowance is adjusted, by a charge or credit to income tax expense, as changes in facts and circumstances warrant. |
Cash and Cash Equivalents | 2. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, time deposits with original maturities less than three months and overnight deposits. |
Investment Securities | 3. Investment Securities The Company classifies its investment securities into one of three portfolios: held to maturity, available for sale or trading. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity securities and reported at amortized cost. Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized holding gains and losses included in earnings. Debt and equity securities not classified as either trading securities or as held to maturity securities are classified as available for sale securities and reported at fair value, with unrealized holding gains or losses, net of deferred income taxes, reported in the accumulated other comprehensive income (“AOCI”) component of stockholders’ equity. If the fair value of a security is less than its amortized cost, the security is deemed to be impaired. Management evaluates all securities with unrealized losses quarterly to determine if such impairments are “temporary” or “other-than-temporary” in accordance with applicable accounting guidance. The Company accounts for temporary impairments based upon security classification as either available for sale, held to maturity or trading. Temporary impairments on “available for sale” securities are recognized, on a tax-effected basis, through AOCI with offsetting entries adjusting the carrying value of the security and the balance of deferred taxes. Conversely, the Company does not adjust the carrying value of “held to maturity” securities for temporary impairments, although information concerning the amount and duration of impairments on held to maturity securities is generally disclosed in periodic consolidated financial statements. The carrying value of securities held in a trading portfolio is adjusted to their fair value through earnings on a daily basis. However, the Company maintained no securities in trading portfolios at or during the periods presented in these consolidated financial statements. The Company accounts for other-than-temporary impairments based upon several considerations. First, other-than-temporary impairments on securities that the Company has decided to sell as of the close of a fiscal period, or will, more likely than not, be required to sell prior to the full recovery of the their fair value to a level equal to or exceeding their amortized cost, are recognized in operations. If neither of these criteria apply, then the other-than-temporary impairment is separated into credit-related and noncredit-related components. The credit-related impairment generally represents the amount by which the present value of the cash flows that are expected to be collected on an other-than-temporarily impaired security fall below its amortized cost while the noncredit-related component represents the remaining portion of the impairment not otherwise designated as credit-related. The Company recognizes credit-related, other-than-temporary impairments in earnings, while noncredit-related, other-than-temporary impairments on debt securities are recognized, net of deferred taxes, in AOCI. Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to purchase and hold restricted stock of its district FHLB according to a predetermined formula. This stock is restricted in that it may only be sold to the FHLB and all sales must be at par. Accordingly, the FHLB restricted stock is carried at cost, less any applicable impairment charges. Premiums and discounts on all securities are amortized or accreted to maturity by use of the level-yield method considering the impact of principal amortization and prepayments on mortgage-backed securities. Gain or loss on sales of securities is recognized on the specific identification method. |
Loans and Allowance for Loan Losses | 4. Loans and Allowance for Loan Losses Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of unpaid principal, adjusted for net deferred loan fees and costs, and reduced by an allowance for loan losses. Interest on loans is accrued and credited to operations based upon the principal amounts outstanding. The allowance for loan losses is established through a provision for possible loan losses charged to operations. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Income recognition of interest is discontinued when, in the opinion of management, the collectability of such interest becomes doubtful. A loan is generally classified as non-accrual when the scheduled payment(s) due on the loan is delinquent for more than three months. Loan origination fees and certain direct origination costs are deferred and amortized over the life of the related loans as an adjustment to the yield on loans receivable using the effective interest method. Management uses a ten point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than three months past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as severe delinquency, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. The Asset Review Committee performs monthly reviews of all commercial relationships internally rated 6 (“Watch”) or worse. Confirmation of the appropriate risk grade is performed by an external loan review company that semi-annually reviews and assesses loans within the portfolio. Generally, the external consultant reviews commercial relationships greater than $500,000 and/or criticized relationships greater than $250,000. Detailed reviews, including plans for resolution, are performed on loans classified as Substandard on a monthly basis. The allowance for loan losses is maintained at an amount management deems adequate to cover estimated losses. In determining the level to be maintained, management evaluates many factors, including current economic trends, industry experience, historical loss experience, industry loan concentrations, the borrowers’ ability to repay and repayment performance, and estimated collateral values. In the opinion of management, the present allowance is adequate to absorb reasonable, foreseeable loan losses. While management uses the best information available to make such evaluations, future adjustments to the allowance may be necessary based on changes in economic conditions or any of the other factors used in management’s determination. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for losses on loans. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Charge-offs to the allowance are made when the loan is transferred to other real estate owned or other determination of a confirmed loss. Recoveries on loans previously charged off are also recorded through the allowance. A loan is considered impaired when, based upon current information and events, it is probable that a creditor will be unable to collect all amounts due including principal and interest, according to the contractual terms of the loan agreement. The Company measures impaired loans based on the present value of expected future cash flows discounted at the loan’s effective interest rate or as a practical expedient, at the loan’s current observable market price, or the fair value of the collateral if the loan is collateral dependent. The amount by which the recorded investment of an impaired loan exceeds the measurement value is recognized by creating a valuation allowance through a charge to the provision for loan losses. Impairment criteria generally do not apply to those smaller-balance homogeneous loans that are collectively evaluated for impairment which, for the Company, includes one- to four-family first mortgage loans and consumer loans, other than those modified in a troubled debt restructuring. The Company records cash receipts on impaired loans that are non-performing as a reduction to principal before applying amounts to interest or late charges unless specifically directed by the Bankruptcy Court to apply payments otherwise. The Company may continue to recognize interest income on impaired loans where there is no confirmed loss. |
Premises and Equipment | 5. Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation, and include capitalized expenditures for new facilities, major betterments and renewals. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is computed using the straight-line method based upon the estimated useful lives of the related assets for financial reporting purposes and using the mandated methods by asset type for income tax purposes. Leasehold improvements are depreciated using the straight-line method based upon the initial term of the lease. The Company accounts for the impairment of long-lived assets in accordance with US GAAP, which requires recognition and measurement for the impairment of long-lived assets to be held and used or to be disposed of by sale. The Company had no impaired long-lived assets at September 30, 2016 and 2015. |
Derivative Contracts | 6. Derivative Contracts Derivative contracts are carried at fair value with unrealized gains and losses excluded from earnings and reported in a separate component of stockholders’ equity, net of related income tax effects. Gains and losses on derivative contracts are recognized upon realization utilizing the specific identification method. As required by US GAAP, the Company recognizes all derivatives as either assets or liabilities in its Consolidated Balance Sheets and measures those instruments at fair value. The Company had no derivative contracts at September 30, 2016 and 2015. |
Other Real Estate Owned | 7. Other Real Estate Owned Real estate acquired through foreclosure, or a deed-in-lieu of foreclosure, is recorded at fair value less estimated selling costs at the date of acquisition or transfer, and subsequently at the lower of its net cost or fair value less estimated selling costs. Adjustments to the carrying value at the date of acquisition or transfer are charged to the allowance for loan losses. The carrying value of the individual properties is subsequently adjusted to the extent it exceeds estimated fair value less estimated selling costs, at which time a provision for losses on such real estate is charged to operations. Operating expenses of holding real estate, net of related income, are charged against income as incurred. Gains on sales of real estate are recognized, normally at closing, when down payment and certain other requirements are met; otherwise such gains are deferred and recognized on the installment method of accounting. Losses on the disposition of real estate, including expenses incurred in connection with the disposition, are charged to operations. |
Income Taxes | 8. Income Taxes The Company and its subsidiaries file consolidated federal and individual state income tax returns. Income taxes are allocated based on the contribution of their respective income or loss to the consolidated income tax return. The Company records income taxes on the basis of reported income using the asset and liability method. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. To the extent that current available evidence about the future raises doubt about the realization of a deferred tax asset, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company follows the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 740, which provides clarification on accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. At September 30, 2016 and 2015, no significant income tax uncertainties have been included in the Company’s Consolidated Balance Sheets. The Company’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Consolidated Statements of Operations. No interest and penalties were recorded during the years ended September 30, 2016 and 2015. The tax years subject to examination by the taxing authorities are the years ended September 30, 2011 and forward. |
Advertising Costs | 9. Advertising Costs The Company expenses advertising costs as incurred. |
Earnings Per Share | 10. Earnings Per Share Basic income per share is calculated by dividing income available to common stockholders by the weighted average number of shares of common stock outstanding for the period. The weighted average common shares outstanding include shares held by the Magyar Bancorp, MHC and shares allocated to the Employee Stock Ownership Plan. Diluted income per share is calculated by adjusting the weighted average common shares outstanding to reflect the potential dilution that could occur using the treasury stock method if securities or other contracts to issue common stock, such as stock options and unvested restricted stock, were exercised and converted into common stock. The resulting shares issued would share in the earnings of the Company. Shares issued and shares reacquired during the period are weighted for the portion of the period that they were outstanding. In periods of loss, dilution is not calculated and diluted loss per share is equal to basic loss per share. The following table illustrates the reconciliation of the numerators and denominators of the basic and diluted earnings per share (EPS) calculations. All stock options were anti-dilutive at September 30, 2016 and 2015. For the Years Ended September 30, 2016 2015 Weighted Per Weighted Per average share average share Income shares Amount Income shares Amount (In thousands, except share and per share data) Basic EPS Net income available to common shareholders $ 1,091 5,820,563 $ 0.19 $ 897 5,818,712 $ 0.15 Effect of dilutive securities Options and grants — — — — 215 — Diluted EPS Net income available to common shareholders plus assumed conversion $ 1,091 5,820,563 $ 0.19 $ 897 5,818,927 $ 0.15 |
Comprehensive Income and Accumulated Other Comprehensive Income | 11. Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) includes net income as well as certain other items which result in a change to equity during the period. The other items allocated to comprehensive income (loss), as well as the related income tax effects, for the years ended September 30, 2016 and 2015 were as follows: September 30, 2016 2015 Tax Net of Tax Net of Before Tax (Benefit) Tax Before Tax (Benefit) Tax Amount Expense Amount Amount Expense Amount (In thousands) Unrealized holding gains (losses) arising during period on: Available-for-sale investments $ 49 $ (21 ) $ 28 $ 229 $ (85 ) $ 144 Less reclassification adjustment for net gains realized on available-for-sale investments (a) (b) (72 ) 29 (43 ) (42 ) 17 (25 ) Defined benefit pension plan (242 ) 97 (145 ) (670 ) 268 (402 ) Other comprehensive loss, net $ (265 ) $ 105 $ (160 ) $ (483 ) $ 200 $ (283 ) (a) Realized gains on securities transactions included in gains on sales of investment securities in the accompanying Consolidated Statements of Operations (b) Tax effect included in income tax expense in the accompanying Consolidated Statements of Operations The components of accumulated other comprehensive loss at September 30, 2016 and 2015 were as follows: September 30, 2016 2015 (In thousands) Available-for-sale investments $ 32 $ 47 Defined benefit pension plan (1,191 ) (1,046 ) Total accumulated other comprehensive loss $ (1,159 ) $ (999 ) |
Bank-Owned Life Insurance | 12. Bank-Owned Life Insurance The Company has purchased Bank-Owned Life Insurance policies (“BOLI”). BOLI involves the purchasing of life insurance by the Company on directors and executive officers. The proceeds are used to help defray the costs of non-qualified compensation plans. The Company is the owner and beneficiary of the policies. BOLI is recorded on the Consolidated Balance Sheets at its cash surrender value and changes in the cash surrender value are recorded in other income in the Consolidated Statement of Operations. |
Segment Reporting | 13. Segment Reporting The Company acts as an independent, community, financial services provider, and offers traditional banking and related financial services to individual, business and government customers. The Company offers a full array of commercial and retail financial services, including the taking of time, savings and demand deposits; the making of commercial, consumer and home equity loans; and the provision of other financial services. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial and retail operations of the Company. As such, discrete financial information is not available and segment reporting would not be meaningful. |
New Accounting Pronouncements | 14. New Accounting Pronouncements In connection with the preparation of quarterly and annual reports in accordance with the Securities and Exchange Commission’s (“SEC”) Securities Exchange Act of 1934, SEC Staff Accounting Bulletin Topic 11.M requires the disclosure of the impact that recently issued accounting standards will have on financial statements when they are adopted in the future. In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Topic 606 Revenue Recognition In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718) In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of reconciliation of the numerators and denominators of basic and diluted earnings per share | The following table illustrates the reconciliation of the numerators and denominators of the basic and diluted earnings per share (EPS) calculations. All stock options were anti-dilutive at September 30, 2016 and 2015. For the Years Ended September 30, 2016 2015 Weighted Per Weighted Per average share average share Income shares Amount Income shares Amount (In thousands, except share and per share data) Basic EPS Net income available to common shareholders $ 1,091 5,820,563 $ 0.19 $ 897 5,818,712 $ 0.15 Effect of dilutive securities Options and grants — — — — 215 — Diluted EPS Net income available to common shareholders plus assumed conversion $ 1,091 5,820,563 $ 0.19 $ 897 5,818,927 $ 0.15 |
Schedule of other items allocated to comprehensive income (loss) | The other items allocated to comprehensive income (loss), as well as the related income tax effects, for the years ended September 30, 2016 and 2015 were as follows: September 30, 2016 2015 Tax Net of Tax Net of Before Tax (Benefit) Tax Before Tax (Benefit) Tax Amount Expense Amount Amount Expense Amount (In thousands) Unrealized holding gains (losses) arising during period on: Available-for-sale investments $ 49 $ (21 ) $ 28 $ 229 $ (85 ) $ 144 Less reclassification adjustment for net gains realized on available-for-sale investments (a) (b) (72 ) 29 (43 ) (42 ) 17 (25 ) Defined benefit pension plan (242 ) 97 (145 ) (670 ) 268 (402 ) Other comprehensive loss, net $ (265 ) $ 105 $ (160 ) $ (483 ) $ 200 $ (283 ) (a) Realized gains on securities transactions included in gains on sales of investment securities in the accompanying Consolidated Statements of Operations (b) Tax effect included in income tax expense in the accompanying Consolidated Statements of Operations |
Schedule of components of accumulated other comprehensive loss | The components of accumulated other comprehensive loss at September 30, 2016 and 2015 were as follows: September 30, 2016 2015 (In thousands) Available-for-sale investments $ 32 $ 47 Defined benefit pension plan (1,191 ) (1,046 ) Total accumulated other comprehensive loss $ (1,159 ) $ (999 ) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Share-based Compensation [Abstract] | |
Schedule of entity's stock option activity and related information | The following is a summary of the status of the Company’s stock option activity and related information for its option plan for the two-year period ended September 30, 2016: Weighted Weighted Average Aggregate Number of Average Remaining Intrinsic Stock Options Exercise Price Contractual Life Value Balance at September 30, 2014 188,276 $ 14.61 2.4 years $ — Granted — — Exercised — — Forfeited — — Balance at September 30, 2015 188,276 14.61 1.4 years $ — Granted — — Exercised — — Forfeited — — Balance at September 30, 2016 188,276 $ 14.61 0.4 years $ — Exercisable at September 30, 2016 188,276 $ 14.61 0.4 years $ — |
Summary of non-vested restricted shares | The following is a summary of the status of the Company’s non-vested restricted shares as of September 30, 2016 and 2015, and changes during those years: Weighted Average Number of Grant Date Stock Awards Fair Value Balance at September 30, 2014 5,302 $ 4.41 Granted — — Vested (4,050 ) 4.50 Forfeited — — Balance at September 30, 2015 1,252 4.30 Granted — — Vested (1,252 ) 4.30 Forfeited — — Balance at September 30, 2016 — $ — |
Schedule of the components of the ESOP shares | The following table presents the components of the ESOP shares as of September 30, 2016: Unreleased shares at September 30, 2015 76,982 Shares released for allocation during the year ended September 30, 2016 (12,445 ) Unreleased shares at September 30, 2016 64,537 Total released shares 153,326 Total ESOP shares 217,863 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule amortized cost, gross unrealized gians or losses and fair values of investment securities available for sale and held to maturity | The amortized cost, gross unrealized gains or losses and fair value of the Company’s investment securities available-for-sale and held-to-maturity are as follows: September 30, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available-for-sale: Obligations of U.S. government agencies: Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential $ 5,075 $ 52 $ — $ 5,127 Private label mortgage-backed securities-residential 108 — (1 ) 107 Total securities available for sale $ 5,183 $ 52 $ (1 ) $ 5,234 September 30, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities held-to-maturity: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 4,383 $ 171 $ (90 ) $ 4,464 Mortgage-backed securities - commercial 1,034 — (1 ) 1,033 Obligations of U.S. government-sponsored enterprises: Mortgage backed securities - residential 40,024 1,098 (16 ) 41,106 Debt securities 4,000 1 — 4,001 Private label mortgage-backed securities - residential 493 — (6 ) 487 Corporate securities 3,000 — (242 ) 2,758 Total securities held to maturity $ 52,934 $ 1,270 $ (355 ) $ 53,849 At September 30, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities available-for-sale: Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential $ 5,839 $ 82 $ (7 ) $ 5,914 Private label mortgage-backed securities-residential 151 — (1 ) 150 Total securities available-for-sale $ 5,990 $ 82 $ (8 ) $ 6,064 At September 30, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (In thousands) Securities held-to-maturity: Obligations of U.S. government agencies: Mortgage-backed securities - residential $ 5,414 $ 156 $ (99 ) $ 5,471 Mortgage-backed securities - commercial 1,101 — (2 ) 1,099 Obligations of U.S. government-sponsored enterprises: Mortgage backed securities - residential 37,563 647 (67 ) 38,143 Debt securities 5,000 2 (25 ) 4,977 Private label mortgage-backed securities - residential 536 1 (1 ) 536 Corporate securities 3,000 22 — 3,022 Total securities held-to-maturity $ 52,614 $ 828 $ (194 ) $ 53,248 |
Schedule of maturities of the debt securities and mortgage-backed securities available-for-sale and held to maturity | The amortized cost and fair value of the Company’s securities available-for-sale at September 30, 2016 are summarized in the following table: September 30, 2016 (In thousands) Amortized Fair Cost Value Due within 1 year $ — $ — Due after 1 but within 5 years — — Due after 5 but within 10 years — — Due after 10 years — — Total debt securities — — Mortgage-backed securities: Residential (1) 5,183 5,234 Commercial — — Total $ 5,183 $ 5,234 (1) Available-for-sale mortgage-backed securities – residential include an amortized cost of $5.1 million and a fair value of $5.1 million for obligations of U.S. government-sponsored enterprises issued by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Also included are residential mortgage backed securities issued by non-U.S. government agencies and government-sponsored enterprises with an amortized cost of $108,000 and fair value of $107,000. The maturities of the debt securities and the mortgage-backed securities held to maturity at September 30, 2016 are summarized in the following table: September 30, 2016 Amortized Fair Cost Value (In thousands) Due within 1 year $ — $ — Due after 1 but within 5 years 2,000 2,000 Due after 5 but within 10 years 5,000 4,759 Due after 10 years — — Total debt securities 7,000 6,759 Mortgage backed securities: Residential (1) 44,900 46,057 Commercial (2) 1,034 1,033 Total $ 52,934 $ 53,849 (1) Held-to-maturity mortgage-backed securities – residential include an amortized cost of $4.4 million and a fair value of $4.5 million for obligations of U.S. government agencies issued by the Government National Mortgage Association and obligations of U.S. government-sponsored enterprises issued by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation which had an amortized cost of $40.0 million and a fair value of $41.1 million. Also included are mortgage backed securities issued by non-U.S. government agencies and government-sponsored enterprises with an amortized cost of $493,000 and a fair value of $487,000. (2) Held-to-maturity mortgage-backed securities – commercial include an amortized cost of $1.0 million and a fair value of $1.0 million for obligations of U.S. government agencies issued by the Small Business Administration. |
Schedule of securities with unrealized losses | Details of securities with unrealized losses at September 30, 2016 and 2015 are as follows: September 30, 2016 Less Than 12 Months 12 Months Or Greater Total Number of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses (Dollars in thousands) Obligations of U.S. government agencies: Mortgage-backed securities - residential 2 $ — $ — $ 849 $ (90 ) $ 849 $ (90 ) Mortgage-backed securities - commercial 1 1,033 (1 ) — — 1,033 (1 ) Obligations of U.S. government-sponsored enterprises Mortgage-backed securities - residential 2 1,376 (3 ) 1,942 (13 ) 3,318 (16 ) Private label mortgage-backed securities residential 3 172 (4 ) 330 (3 ) 502 (7 ) Corporate securities 1 — — 2,758 (242 ) 2,758 (242 ) Total 9 $ 2,581 $ (8 ) $ 5,879 $ (348 ) $ 8,460 $ (356 ) September 30, 2015 Less Than 12 Months 12 Months Or Greater Total Number of Fair Unrealized Fair Unrealized Fair Unrealized Securities Value Losses Value Losses Value Losses (Dollars in thousands) Obligations of U.S. government agencies: Mortgage-backed securities- residential 3 $ — $ — $ 2,254 $ (99 ) $ 2,254 $ (99 ) Mortgage-backed securities - commercial 1 1,099 (2 ) — — 1,099 (2 ) Obligations of U.S. government-sponsored enterprises Mortgage backed securities- residential 7 4,424 (34 ) 8,688 (40 ) 13,112 (74 ) Debt securities 1 — — 1,975 (25 ) 1,975 (25 ) Private label mortgage-backed securities- residential 2 — — 223 (2 ) 223 (2 ) Total 14 $ 5,523 $ (36 ) $ 13,140 $ (166 ) $ 18,663 $ (202 ) |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Loans Receivable, Net [Abstract] | |
Schedule of net Loans | Loans receivable are comprised of the following: September 30, September 30, 2016 2015 (In thousands) One-to four-family residential $ 173,235 $ 169,781 Commercial real estate 199,510 173,864 Construction 14,939 6,679 Home equity lines of credit 21,967 21,176 Commercial business 38,865 41,485 Other 9,355 10,305 Total loans receivable 457,871 423,290 Net deferred loan costs 216 192 Allowance for loan losses (3,056 ) (2,886 ) Total loans receivable, net $ 455,031 $ 420,596 |
Schedule of impaired loans | The following tables present impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary for the periods presented: Impaired Loans Impaired Loans with with No Specific Specific Allowance Allowance Total Impaired Loans Unpaid At and for the year ended Recorded Related Recorded Recorded Principal September 30, 2016 Investment Allowance Investment Investment Balance (In thousands) One-to four-family residential $ — $ — $ 4,010 $ 4,010 $ 4,239 Commercial real estate — — 3,843 3,843 3,843 Home equity lines of credit — — 153 153 167 Commercial business 997 39 250 1,247 1,850 Total impaired loans $ 997 $ 39 $ 8,256 $ 9,253 $ 10,099 Impaired Loans Impaired Loans with with No Specific Specific Allowance Allowance Total Impaired Loans Unpaid At and for the year ended Recorded Related Recorded Recorded Principal September 30, 2015 Investment Allowance Investment Investment Balance (In thousands) One-to four-family residential $ — $ — $ 3,017 $ 3,017 $ 3,134 Commercial real estate — — 5,447 5,447 6,556 Home equity lines of credit — — 417 417 521 Commercial business 1,690 201 66 1,756 1,756 Total impaired loans $ 1,690 $ 201 $ 8,947 $ 10,637 $ 11,967 |
Schedule of loan portfolio summarized by Bank's internal risk rating system | The following tables present the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the Bank’s internal risk rating system for the periods presented: Special Pass Mention Substandard Doubtful Total (In thousands) September 30, 2016 One-to four-family residential $ 169,596 $ 209 $ 3,430 $ — $ 173,235 Commercial real estate 196,838 — 2,672 — 199,510 Construction 12,461 — 2,478 — 14,939 Home equity lines of credit 21,814 — 153 — 21,967 Commercial business 37,868 — — 997 38,865 Other 9,355 — — — 9,355 Total $ 447,932 $ 209 $ 8,733 $ 997 $ 457,871 Special Pass Mention Substandard Doubtful Total (In thousands) September 30, 2015 One-to four-family residential $ 166,846 $ — $ 2,935 $ — $ 169,781 Commercial real estate 169,239 210 3,309 1,106 173,864 Construction 2,468 — 4,211 — 6,679 Home equity lines of credit 19,436 — 1,740 — 21,176 Commercial business 39,764 — 1,721 — 41,485 Other 10,305 — — — 10,305 Total $ 408,058 $ 210 $ 13,916 $ 1,106 $ 423,290 |
Schedule of aging analysis of past due loans, segregated by class of loans | The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans for the periods presented: 30-59 60-89 Days Days 90 Days + Total Non- Total Current Past Due Past Due Past Due Past Due Accrual Loans (In thousands) September 30, 2016 One-to four-family residential $ 170,705 $ — $ 44 $ 2,486 $ 2,530 $ 2,486 $ 173,235 Commercial real estate 198,577 — 490 443 933 443 199,510 Construction 14,939 — — — — — 14,939 Home equity lines of credit 21,686 — — 281 281 281 21,967 Commercial business 37,865 — 3 997 1,000 997 38,865 Other 9,355 — — — — — 9,355 Total $ 453,127 $ — $ 537 $ 4,207 $ 4,744 $ 4,207 $ 457,871 30-59 60-89 Days Days 90 Days + Total Non- Total Current Past Due Past Due Past Due Past Due Accrual Loans (In thousands) September 30, 2015 One-to four-family residential $ 166,993 $ — $ 730 $ 2,058 $ 2,788 $ 2,058 $ 169,781 Commercial real estate 171,969 — — 1,895 1,895 1,895 173,864 Construction 6,679 — — — — — 6,679 Home equity lines of credit 20,921 — — 255 255 255 21,176 Commercial business 39,777 — 19 1,689 1,708 1,689 41,485 Other 10,305 — — — — — 10,305 Total $ 416,644 $ — $ 749 $ 5,897 $ 6,646 $ 5,897 $ 423,290 |
Schedule of activity in the allowance for loan losses by portfolio segment | The following tables summarize the activity in the allowance for loan losses by loan category for the years ended September 30, 2016 and 2015: One-to Four- Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (In thousands) Balance-September 30, 2015 $ 395 $ 931 $ 453 $ 53 $ 969 $ 6 $ 79 $ 2,886 Charge-offs (133 ) (61 ) — (98 ) (1,119 ) — — (1,411 ) Recoveries — 100 7 80 28 — — 215 Provision 280 105 (99 ) 36 1,098 3 (57 ) 1,366 Balance-September 30, 2016 $ 542 $ 1,075 $ 361 $ 71 $ 976 $ 9 $ 22 $ 3,056 One-to Four- Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (In thousands) Balance-September 30, 2014 $ 402 $ 826 $ 784 $ 62 $ 643 $ 9 $ 109 $ 2,835 Charge-offs (176 ) (397 ) (342 ) (461 ) (274 ) (1 ) — (1,651 ) Recoveries 400 — 38 — — — — 438 Provision (231 ) 502 (27 ) 452 600 (2 ) (30 ) 1,264 Balance-September 30, 2015 $ 395 $ 931 $ 453 $ 53 $ 969 $ 6 $ 79 $ 2,886 The following tables summarize the ALL by loan category, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2016 and September 30, 2015: One-to Four- Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (In thousands) Allowance for Loan Losses: Balance - September 30, 2016 $ 542 $ 1,075 $ 361 $ 71 $ 976 $ 9 $ 22 $ 3,056 Individually evaluated for impairment — — — — 39 — — 39 Collectively evaluated for impairment 542 1,075 361 71 937 9 22 3,017 Loans receivable: Balance - September 30, 2016 $ 173,235 $ 199,510 $ 14,939 $ 21,967 $ 38,865 $ 9,355 $ — $ 457,871 Individually evaluated for impairment 4,010 3,843 — 153 1,247 — — 9,253 Collectively evaluated for impairment 169,225 195,667 14,939 21,814 37,618 9,355 448,618 One-to Four- Home Equity Family Commercial Lines of Commercial Residential Real Estate Construction Credit Business Other Unallocated Total (In thousands) Allowance for Loan Losses: Balance - September 30, 2015 $ 395 $ 931 $ 453 $ 53 $ 969 $ 6 $ 79 $ 2,886 Individually evaluated for impairment — — — — 201 — — 201 Collectively evaluated for impairment 395 931 453 53 768 6 79 2,685 Loans receivable: Balance - September 30, 2015 $ 169,781 $ 173,864 $ 6,679 $ 21,176 $ 41,485 $ 10,305 — $ 423,290 Individually evaluated for impairment 3,017 5,447 — 417 1,756 — — 10,637 Collectively evaluated for impairment 166,764 168,417 6,679 20,759 39,729 10,305 412,653 |
Schedule of troubled debt restructurings | The following tables summarize the TDRs during the twelve month periods ended , 2016 and 2015: Year Ended September 30, 2015 Number of Investment Before Investment After Loans TDR Modification TDR Modification (Dollars in thousands) One-to four-family residential — $ — $ — Total — $ — $ — Year Ended September 30, 2015 Number of Investment Before Investment After Loans TDR Modification TDR Modification (Dollars in thousands) One-to four-family residential 2 $ 650 $ 713 Total 2 $ 650 $ 713 |
ACCRUED INTEREST RECEIVABLE (Ta
ACCRUED INTEREST RECEIVABLE (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Interest Receivable and Other Assets [Abstract] | |
ACCRUED INTEREST RECEIVABLE | The following is a summary of accrued interest receivable: September 30, 2016 2015 (In thousands) Loans $ 1,548 $ 1,543 Investment securities 57 57 Mortgage-backed securities 105 103 Total accrued interest receivable $ 1,710 $ 1,703 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | Premises and equipment consist of the following: Estimated September 30, Useful Lives 2016 2015 (Dollars in thousands) Land Indefinite $ 3,811 $ 3,811 Buildings and improvements 10-40 years 22,341 21,449 Furniture, fixtures and equipment 5-10 years 2,878 2,828 29,030 28,088 Less accumulated depreciation (10,946 ) (10,270 ) $ 18,084 $ 17,818 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Deposits [Abstract] | |
Schedule of deposits by type of account | A summary of deposits by type of account follows: September 30, 2016 2015 (In thousands) Demand accounts $ 94,462 $ 87,915 Savings accounts 100,706 90,196 NOW accounts 49,045 41,457 Money market accounts 114,458 103,593 Certificate of deposit 114,355 122,088 Retirement accounts 19,624 21,020 $ 492,650 $ 466,269 |
Schedule of contractual maturities of certificates of deposit | At September 30, 2016, certificates of deposit (including retirement accounts and brokered certificate deposit accounts) have contractual maturities as follows (in thousands): Year Ending September 30, 2017 $ 56,493 2018 33,308 2019 27,600 2020 5,080 2021 and after 11,498 $ 133,979 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of maturities of FHLBNY advances | Long term FHLBNY advances as of September 30, 2016 mature as follows (in thousands): Year Ending September 30, 2017 $ 5,000 2018 5,100 2019 8,940 2020 10,294 2021 2,500 Thereafter 4,206 $ 36,040 |
Schedule of short-term arrangements with the FHLBNY | Information concerning short-term borrowings with the FHLBNY is summarized as follows: September 30, 2016 2015 (Dollars in thousands) Balance at end of year $ — $ — Weighted average balance during the year $ 1,080 $ 2,958 Maximum month-end balance during the year $ 16,200 $ 18,500 Average interest rate during the year 0.56% 0.37% |
SERVICING POLICY (Tables)
SERVICING POLICY (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Transfers and Servicing [Abstract] | |
Schedule of activity in mortgage servicing rights | Activity in mortgage servicing rights during the years ended September 30, 2016 and 2015 are summarized as follows: September 30, 2016 2015 (In thousands) Beginning balance $ 132 $ 175 Origination of mortgage servicing rights — 20 Amortization (35 ) (63 ) Ending balance $ 97 $ 132 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense | The income tax expense is comprised of the following components for the years ended September 30, 2016 and 2015: September 30, 2016 2015 (In thousands) Current $ 59 $ 10 Deferred 605 403 Total income tax expense $ 664 $ 413 |
Schedule of reconciliation of income tax at the statutory rate to effective tax rate | A reconciliation of income tax at the statutory tax rate to the effective income tax expense for the years ended September 30, 2016 and 2015 is as follows: September 30, 2016 2015 (In thousands) Income tax expense at statutory rate $ 596 $ 445 Increase (decrease) resulting from: State income taxes, net of federal income tax benefit 161 69 Tax-exempt income, net (96 ) (99 ) Nondeductible expenses 5 3 Employee stock ownership plan (3 ) (7 ) Other, net 1 2 Total income tax expense $ 664 $ 413 |
Schedule of major sources of temporary differences and their deferred tax effect | The major sources of temporary differences and their deferred tax effect at September 30, 2016 and 2015 are as follows: September 30, 2016 2015 (In thousands) Allowance for loan losses $ 1,221 $ 1,153 Deferred loan fees 93 448 Employee benefits 82 168 Charitable contributions — 14 Net operating losses 1,670 1,938 Alternative minimum tax credit 252 243 Unrealized loss, minimum pension liability 793 696 OREO 317 307 Straight line rent 178 163 Gross deferred tax asset 4,606 5,130 Depreciation (1,443 ) (1,506 ) Discount accretion on investments (118 ) (117 ) Net unrealized gain, investment securities available-for-sale (18 ) (27 ) Mortgage servicing rights (39 ) (53 ) Gross deferred tax liability (1,618 ) (1,703 ) Net deferred tax asset 2,988 3,427 Valuation allowance (83 ) (20 ) Net deferred tax asset, included in other assets $ 2,905 $ 3,407 |
PENSION PLAN (Tables)
PENSION PLAN (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of plan's funded status and amounts recognized | The following table sets forth the Plan’s funded status and amounts recognized in the Company’s Consolidated Balance Sheets at September 30, 2016 and September 30, 2015. At September 30, 2016 2015 (In thousands) Actuarial present value of benefit obligations $ 4,779 $ 4,337 Change in benefit obligations Projected benefit obligation, beginning $ 4,337 $ 3,890 Interest cost 191 170 Actuarial loss 441 463 Annuity payments and lump sum distributions (190 ) (186 ) Projected benefit obligation, end $ 4,779 $ 4,337 Change in plan assets Fair value of assets, beginning $ 2,766 $ 2,860 Actual return on plan assets 251 (84 ) Employer contributions 124 176 Annuity payments and lump sum distributions (190 ) (186 ) Fair value of assets, end $ 2,951 $ 2,766 Funded status included with other liabilities $ (1,828 ) $ (1,571 ) |
Schedule of net pension costs | Net pension cost for the years ended September 30, 2016 and 2015 included the following components: September 30, 2016 2015 (In thousands) Service cost benefits earned during the year $ — $ — Interest cost on projected benefit obligation 191 170 Expected return on plan assets (191 ) (198 ) Amortization of unrecognized net loss 139 75 Net pension cost $ 139 $ 47 |
Schedule of weighted-average asset allocations by asset category | The Plan’s weighted-average asset allocations at September 30, 2016 and 2015, by asset category are as follows: September 30, 2016 2015 Equity securities 64% 62% Debt securities (bond mutual funds) 36% 37% Other (money market fund) 0% 1% Total 100% 100% |
Schedule of expected benefit payments | The following benefit payments are expected to be paid as follows (in thousands): October 1, 2016 through September 30, 2017 $ 203 October 1, 2017 through September 30, 2018 204 October 1, 2018 through September 30, 2019 207 October 1, 2019 through September 30, 2020 209 October 1, 2020 through September 30, 2021 209 October 1, 2021 through September 30, 2026 1,136 $ 2,168 |
Schedule of plan assets that are measured at fair value | The following table presents the Plan assets that are measured at fair value on a recurring basis by level within the fair value hierarchy under ASC Topic 820. Financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. See Note R for further detail regarding fair value hierarchy. Fair Value Measurements at Reporting Date Using: Quoted Prices Significant in Active Markets Other Significant for Identical Observable Unobservable Total Assets (Level 1) Inputs (Level 2) Inputs (Level 3) (In thousands) At September 30, 2016 Investment Type Mutual Funds- Equity Large-Cap Value $ 400 $ 400 $ — $ — Large-Cap Core 414 414 — — Mid-Cap Core 198 198 — — Small-Cap Core 193 193 — — Non-U.S. Core 686 686 — — Mutual Funds- Fixed Income Intermediate-Term Core 1,055 1,055 — — Cash Equivalents Money Market 5 5 — — Total Investment $ 2,951 $ 2,951 $ — $ — At September 30, 2015 Investment Type Mutual Funds- Equity Large-Cap Value $ 351 $ 351 $ — $ — Large-Cap Core 366 366 — — Mid-Cap Core 180 180 — — Small-Cap Core 171 171 — — Non-U.S. Core 638 638 — — Mutual Funds- Fixed Income Intermediate-Term Core 1,020 1,020 — — Cash Equivalents Money Market 40 40 — — Total Investment $ 2,766 $ 2,766 $ — $ — |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments Tables | |
Schedule of future minimum payments of operating leases | Approximate future minimum payments under non-cancelable operating leases are due as follows for the years indicated (in thousands): 2017 $ 627 2018 627 2019 645 2020 651 2021 663 Thereafter 3,052 $ 6,265 |
FINANCIAL INSTRUMENTS WITH OF40
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK [Abstract] | |
Schedule of fair value, off-balance sheet financial instruments | These commitments were comprised of fixed and variable rate loans. September 30, 2016 2015 (Dollars in thousands) Financial instruments whose contract amounts represent credit risk Letters of credit $ 306 $ 694 Unused lines of credit 45,888 45,039 Fixed rate loan commitments 5,272 1,597 Variable rate loan commitments 6,746 7,937 $ 58,212 $ 55,267 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | The following table provides the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a recurring basis at September 30, 2016 and 2015: Fair Value at September 30, 2016 Total Level 1 Level 2 Level 3 (Dollars in thousands) Securities available for sale: Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential $ 5,127 $ — $ 5,127 $ — Private label mortgage-backed securities-residential 107 — 107 — Total securities available for sale $ 5,234 $ — $ 5,234 $ — Fair Value at September 30, 2015 Total Level 1 Level 2 Level 3 (Dollars in thousands) Securities available for sale: Obligations of U.S. government-sponsored enterprises: Mortgage-backed securities-residential $ 5,914 $ — $ 5,914 $ — Private label mortgage-backed securities-residential 150 — 150 — Total securities available for sale $ 6,064 $ — $ 6,064 $ — |
Schedule of assets measured at fair value on a non-recurring basis | The following tables provide the level of valuation assumptions used to determine the carrying value of our assets measured at fair value on a non-recurring basis at September 30, 2016 and 2015: Fair Value at September 30, 2016 Total Level 1 Level 2 Level 3 (In thousands) Impaired loans $ 958 $ — $ — $ 958 Other real estate owned 12,082 — — 12,082 $ 13,040 $ — $ — $ 13,040 Fair Value at September 30, 2015 Total Level 1 Level 2 Level 3 (In thousands) Impaired loans $ 1,489 $ — $ — $ 1,489 Other real estate owned 16,192 — — 16,192 $ 17,681 $ — $ — $ 17,681 |
Schedule of quantitative information about assets measured at fair value on a nonrecurring bassis for which Level 3 inputs were used to determine fair value | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation September 30, 2016 Estimate Techniques Unobservable Input Range (Weighted Average) Impaired loans $ 958 Appraisal of collateral (1) Appraisal adjustments (2) -5.8% to -36.5% (-19.5%) Other real estate owned $ 12,082 Appraisal of collateral (1) Liquidation expenses (2) -3.9% to -41.6% (-22.4%) Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Valuation September 30, 2015 Estimate Techniques Unobservable Input Range (Weighted Average) Impaired loans $ 1,489 Appraisal of collateral (1) Appraisal adjustments (2) -16.0% to -40.0% (-8.0%) Other real estate owned $ 16,192 Appraisal of collateral (1) Liquidation expenses (2) 0.0% to -41.2% (-15.1%) (1) Fair value is generally determined through independent appraisals for the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. |
Schedule of the carrying amount, fair value, and placement in the fair value hierarchy of financial instruments carried at cost or amortized cost | For financial liabilities such as interest-bearing demand, NOW, and money market savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. Carrying Fair Fair Value Measurement Placement Amount Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) September 30, 2016 Financial instruments - assets Investment securities held-to-maturity $ 52,934 $ 53,849 $ — $ 53,849 $ — Loans 455,031 462,868 — — 462,868 Financial instruments - liabilities Certificate of deposit 133,979 135,162 — 135,162 — Borrowings 36,040 36,473 — 36,473 — September 30, 2015 Financial instruments - assets Investment securities held-to-maturity $ 52,614 $ 53,248 $ — $ 53,248 $ — Loans 420,596 425,890 — — 425,890 Financial instruments - liabilities Certificate of deposit 143,108 144,150 — 144,150 — Borrowings 31,594 32,231 — 32,231 — |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of regulatory capital compliance | To be well-capitalized For capital under prompt corrective Actual adequacy purposes action provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of September 30, 2016 Total Capital (to risk-weighted assets) Magyar Bancorp, Inc. $ 51,940 12.55% N/A N/A N/A N/A Magyar Bank $ 50,447 12.19% 33,099 ≥ 8.00% 41,374 ≥ 10.00% Tier 1 Capital (to risk-weighted assets) Magyar Bancorp, Inc. $ 48,884 11.82% N/A N/A N/A N/A Magyar Bank $ 47,391 11.45% 16,550 ≥ 4.00% 24,825 ≥ 6.00% Common Equity Tier 1 Capital (to risk-weighted assets) Magyar Bancorp, Inc. $ 48,884 11.82% N/A N/A N/A N/A Magyar Bank $ 47,391 11.45% 18,618 ≥ 4.50% 24,825 ≥ 6.00% Tier 1 Capital (to average assets) Magyar Bancorp, Inc. $ 48,884 8.53% N/A N/A N/A N/A Magyar Bank $ 47,391 8.27% 22,914 ≥ 4.00% 28,642 ≥ 5.00% As of September 30, 2015 Total Capital (to risk-weighted assets) Magyar Bancorp, Inc. $ 50,555 12.98% N/A N/A N/A N/A Magyar Bank $ 48,584 12.47% 31,158 ≥ 8.00% 38,947 ≥ 10.00% Tier 1 Capital (to risk-weighted assets) Magyar Bancorp, Inc. $ 47,669 12.24% N/A N/A N/A N/A Magyar Bank $ 45,698 11.73% 15,579 ≥ 4.00% 23,368 ≥ 6.00% Common Equity Tier 1 Capital (to risk-weighted assets) Magyar Bancorp, Inc. $ 47,669 12.24% N/A N/A N/A N/A Magyar Bank $ 45,698 11.73% 17,526 ≥ 4.50% 23,368 ≥ 6.00% Tier 1 Capital (to average assets) Magyar Bancorp, Inc. $ 47,669 8.75% N/A N/A N/A N/A Magyar Bank $ 45,698 8.39% 21,795 ≥ 4.00% 27,244 ≥ 5.00% |
ORGANIZATION (Narrative) (Detai
ORGANIZATION (Narrative) (Details) - shares | Sep. 30, 2016 | Sep. 30, 2015 |
Common stock, shares outstanding | 5,820,746 | 5,819,494 |
Treasury stock, shares | 102,996 | 104,248 |
Treasury Stock [Member] | ||
Ownership of Maygar Bancorp, Inc. (percentage) | 1.80% | |
Treasury stock, shares | 104,248 | |
Hungaria Urban Renewal [Member] | ||
Ownership of subsidiaries | 100.00% | |
Magyar Bank [Member] | ||
Ownership of Maygar Bancorp, Inc. (percentage) | 44.20% | |
Common stock, shares outstanding | 2,620,296 | |
Magyar Bancorp, MHC [Member] | ||
Ownership of subsidiaries | 100.00% | |
Ownership of Maygar Bancorp, Inc. (percentage) | 54.00% | |
Common stock, shares outstanding | 3,200,450 |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Accounting Policies [Abstract] | |
Commercial relationships | $ 500 |
Criticized relationships | $ 250 |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Basic EPS | ||
Net income available to common shareholders | $ 1,091 | $ 897 |
Weighted average number of common shares outstanding - basic | 5,820,563 | 5,818,712 |
Basic earnings (loss) per share | $ 0.19 | $ 0.15 |
Effect of dilutive securities | ||
Options and grants | 215 | |
Diluted EPS | ||
Net income available to common shareholders plus assumed conversion | $ 1,091 | $ 897 |
Weighted average number of common shares and common share equivalents - diluted | 5,820,563 | 5,818,927 |
Diluted earnings (loss) per share | $ 0.19 | $ 0.15 |
SUMMARY OF SIGNIFICANT ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Other Items Allocated to Comprehensive Income/Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Unrealized holding gains (losses) arising during period on: | ||
Available-for-sale investments before tax | $ 49 | $ 229 |
Tax benefit (expense) | (21) | (85) |
Available-for-sale investments after tax | 28 | 144 |
Reclassification adjustment for net gains realized on available-for-sale investments before tax | (72) | (42) |
Tax benefit (expense) | 29 | 17 |
Reclassification adjustment for net gains realized on available-for-sale investments after tax | (43) | (25) |
Defined benefit pension plan before tax | (242) | (670) |
Tax benefit (expense) | 97 | 268 |
Defined benefit pension plan after tax | (145) | (402) |
Other comprehensive loss, net before tax | (265) | (483) |
Tax benefit (expense), Total | 105 | 200 |
Other comprehensive gain (loss), net | $ (160) | $ (283) |
SUMMARY OF SIGNIFICANT ACCOUN47
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Accounting Policies [Abstract] | ||
Available-for-sale investments | $ 32 | $ 47 |
Defined benefit pension plan | (1,191) | (1,046) |
Total accumulated other comprehensive loss | $ (1,159) | $ (999) |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 7 Months Ended | 12 Months Ended | 107 Months Ended | |
Nov. 30, 2007 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | |
Stock option expenses | $ 0 | $ 0 | ||
Stock award expenses | 3 | 12 | ||
Cost of shares repurchased by ESOP trust | $ 2,300 | |||
Average cost of shares repurchased (per share) | $ 10.58 | |||
Description of loan with respect to employee stock ownership plan | The ESOP trust purchased 217,863 shares of common stock in the open market using proceeds of a loan from the Company. The total cost of shares purchased by the ESOP trust was $2.3 million, reflecting an average cost per share of $10.58. The Bank will make cash contributions to the ESOP on an annual basis sufficient to enable the ESOP to make the required loan payments to the Company. The loan bears a variable interest rate that adjusts annually to Prime Rate (3.50% at January 1, 2016) with principal and interest payable annually in equal installments over thirty years. The loan is secured by shares of the Company's stock. | |||
Interest rate of loan with respect to employee stock ownership plan | 3.50% | 3.50% | ||
Fair value of unreleased shares | $ 651 | $ 651 | ||
ESOP compensation expense | $ 122 | $ 111 | ||
First Repurchase Program [Member] | ||||
Maximum stock repurchase authorization (as a percent) | 5.00% | |||
Stock authorized to be repurchased (in shares) | 130,927 | |||
Second Repurchase Program [Member] | ||||
Maximum stock repurchase authorization (as a percent) | 5.00% | |||
Stock authorized to be repurchased (in shares) | 129,924 | 129,924 | ||
Stock repurchased during period (in shares) | 81,000 | |||
Remaining shares available to be repurchased | 48,924 | 48,924 | ||
Common stock average cost (in dollars per share) | $ 8.33 |
STOCK-BASED COMPENSATION (Sched
STOCK-BASED COMPENSATION (Schedule of Stock Option Activity And Related Information For Its Option Plan) (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Number of Stock Options | ||
Balance at the beginning of period | 188,276 | 188,276 |
Options granted | ||
Options exercised | ||
Options forfeited | ||
Balance at the end of period | 188,276 | 188,276 |
Exercisable at the end of period | 188,276 | 188,276 |
Options, Weighted Average Exercise Price | ||
Weighted average price at the beginning of period | $ 14.61 | $ 14.61 |
Options granted | ||
Options exercised | ||
Options forfeited | ||
Weighted average price at the end of period | 14.61 | 14.61 |
Exercisable at the end of period | $ 14.61 | $ 14.61 |
Weighted Average Remaining Contractual Life of Stock options outstanding at the beginning of period (in years) | 1 year 4 months 24 days | 2 years 4 months 24 days |
Weighted Average Remaining Contractual Life of Stock options outstanding at the end of period (in years) | 4 months 24 days | 1 year 4 months 24 days |
Weighted Average Remaining Contractual Life, Stock options Exercisable at the end of period (in years) | 4 months 24 days | |
Aggregate Intrinsic Value of Stock options Outstanding at the beginning of period | ||
Aggregate Intrinsic Value of Stock options Outstanding at the end of period | ||
Aggregate Intrinsic Value of Stock options Exercisable at the end of period |
STOCK-BASED COMPENSATION (Sch50
STOCK-BASED COMPENSATION (Schedule of Non-Vested Restricted Shares) (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Non Vested Stock Awards Outstanding | ||
Balance at the beginning of period (in shares) | 1,252 | 5,302 |
Stock Awards granted (in shares) | ||
Stock Awards vested (in shares) | (1,252) | (4,050) |
Stock Awards forfeited (in shares) | ||
Balance at the end of period (in shares) | 1,252 | |
Non Vested Stock Awards, Weighted Average Grant Date Fair Value | ||
Balance at the beginning of period (in dollars per share) | $ 4.30 | $ 4.41 |
Stock Awards granted (in dollars per share) | ||
Stock Awards vested (in dollars per share) | 4.30 | 4.50 |
Stock Awards forfeited (in dollars per share) | ||
Balance at the end of period (in dollars per share) | $ 4.30 |
STOCK-BASED COMPENSATION (Sch51
STOCK-BASED COMPENSATION (Schedule of Components of the ESOP Shares) (Details) | Sep. 30, 2016shares |
Share-based Compensation [Abstract] | |
Unreleased shares, beginning | 76,982 |
Shares released for allocation during the year | (12,445) |
Unreleased shares, ending | 64,537 |
Total released shares | 153,326 |
Total ESOP shares | 217,863 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||
Sales of investment securities available for sale | $ 6,298 | $ 5,421 |
Realized gain on sale of securities available for sale | 72 | 42 |
Securities pledged to secure public deposits, fair value | $ 27,800 | $ 27,000 |
INVESTMENT SECURITIES (Schedule
INVESTMENT SECURITIES (Schedule of the Unamortized Cost, Gross Unrealized Gains or Losses and Fair Value of Investment Securities Available-For-Sale and Held-To-Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Securities available-for-sale: | ||
Amortized Cost | $ 5,183 | $ 5,990 |
Gross Unrealized Gains | 52 | 82 |
Gross Unrealized Losses | (1) | (8) |
Fair Value | 5,234 | 6,064 |
Securities held-to-maturity: | ||
Amortized Cost | 52,934 | 52,614 |
Gross Unrealized Gains | 1,270 | 828 |
Gross Unrealized Losses | (355) | (194) |
Fair Value | 53,849 | 53,248 |
Obligations of U.S. government-sponsored enterprises Debt securities [Member] | ||
Securities held-to-maturity: | ||
Amortized Cost | 4,000 | 5,000 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | (25) | |
Fair Value | 4,001 | 4,977 |
Obligations of U.S. government-sponsored enterprises Mortgage backed securities - residential [Member] | ||
Securities available-for-sale: | ||
Amortized Cost | 5,075 | 5,839 |
Gross Unrealized Gains | 52 | 82 |
Gross Unrealized Losses | (7) | |
Fair Value | 5,127 | 5,914 |
Securities held-to-maturity: | ||
Amortized Cost | 40,024 | 37,563 |
Gross Unrealized Gains | 1,098 | 647 |
Gross Unrealized Losses | (16) | (67) |
Fair Value | 41,106 | 38,143 |
Private label mortgage-backed securities-residential [Member] | ||
Securities available-for-sale: | ||
Amortized Cost | 108 | 151 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (1) | (1) |
Fair Value | 107 | 150 |
Securities held-to-maturity: | ||
Amortized Cost | 493 | 536 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (6) | (1) |
Fair Value | 487 | 536 |
Obligations of U.S. government agencies Mortgage backed securities - residential [Member] | ||
Securities held-to-maturity: | ||
Amortized Cost | 4,383 | 5,414 |
Gross Unrealized Gains | 171 | 156 |
Gross Unrealized Losses | (90) | (99) |
Fair Value | 4,464 | 5,471 |
Corporate securities [Member] | ||
Securities held-to-maturity: | ||
Amortized Cost | 3,000 | 3,000 |
Gross Unrealized Gains | 22 | |
Gross Unrealized Losses | (242) | |
Fair Value | 2,758 | 3,022 |
Obligations of U.S. government agencies Mortgage backed securities -commercial [Member] | ||
Securities held-to-maturity: | ||
Amortized Cost | 1,034 | 1,101 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (1) | (2) |
Fair Value | $ 1,033 | $ 1,099 |
INVESTMENT SECURITIES (Schedu54
INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Value of Securities Available-For-Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | |
Available for Sale Securities, Amortized Cost | |||
Due within 1 year | |||
Due after 1 but within 5 years | |||
Due after 5 but within 10 years | |||
Due after 10 years | |||
Total debt securities | |||
Mortgage Backed Securities, Residential | [1] | 5,183 | |
Mortgage Backed Securities, Commercial | |||
Amortized Cost | 5,183 | $ 5,990 | |
Available for Sale Securities, Fair Value | |||
Due within 1 year | |||
Due after 1 but within 5 years | |||
Due after 5 but within 10 years | |||
Due after 10 years | |||
Total debt securities | |||
Mortgage Backed Securities, Residential | [1] | 5,234 | |
Mortgage Backed Securities, Commercial | |||
Fair Value | $ 5,234 | $ 6,064 | |
[1] | Available-for-sale mortgage-backed securities - residential include an amortized cost of $5.1 million and a fair value of $5.1 million for obligations of U.S. government-sponsored enterprises issued by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Also included are residential mortgage backed securities issued by non-U.S. government agencies and government-sponsored enterprises with an amortized cost of $108,000 and fair value of $107,000. |
INVESTMENT SECURITIES (Schedu55
INVESTMENT SECURITIES (Schedule of Maturities of the Debt Securities and the Mortgage-Backed Securities Held-To-Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | |
Held to Maturity Securities, Amortized Cost | |||
Due within 1 year | |||
Due after 1 but within 5 years | 2,000 | ||
Due after 5 but within 10 years | 5,000 | ||
Due after 10 years | |||
Total debt securities | 7,000 | ||
Mortgage Backed Securities, Residential | [1] | 44,900 | |
Mortgage Backed Securities, Commercial | [2] | 1,034 | |
Amortized cost | 52,934 | $ 52,614 | |
Held to Maturity Securities, Fair Value | |||
Due within 1 year | |||
Due after 1 but within 5 years | 2,000 | ||
Due after 5 but within 10 years | 4,759 | ||
Due after 10 years | |||
Total debt securities | 6,759 | ||
Mortgage Backed Securities, Residential | [1] | 46,057 | |
Mortgage Backed Securities, Commercial | [2] | 1,033 | |
Fair value | $ 53,849 | $ 53,248 | |
[1] | Held-to-maturity mortgage-backed securities - residential include an amortized cost of $4.4 million and a fair value of $4.5 million for obligations of U.S. government agencies issued by the Government National Mortgage Association and obligations of U.S. government-sponsored enterprises issued by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation which had an amortized cost of $40.0 million and a fair value of $41.1 million. Also included are mortgage backed securities issued by non-U.S. government agencies and government-sponsored enterprises with an amortized cost of $493,000 and a fair value of $487,000. | ||
[2] | Held-to-maturity mortgage-backed securities - commercial include an amortized cost of $1.0 million and a fair value of $1.0 million for obligations of U.S. government agencies issued by the Small Business Administration. |
INVESTMENT SECURITIES (Schedu56
INVESTMENT SECURITIES (Schedule of Securities With Unrealized Losses) (Details) $ in Thousands | Sep. 30, 2016USD ($)N | Sep. 30, 2015USD ($)N |
Available For Sale and Held To Maturity Securities | ||
Number of Securities | N | 9 | 14 |
Less than 12 Months, Fair Value | $ 2,581 | $ 5,523 |
Less than 12 Months, Unrealized Losses | (8) | (36) |
12 Months or Longer, Fair Value | 5,879 | 13,140 |
12 Months or Longer, Unrealized Losses | (348) | (166) |
Total, Fair Value | 8,460 | 18,663 |
Total, Unrealized Losses | $ (356) | $ (202) |
Obligations of U.S. government agencies Mortgage backed securities -commercial [Member] | ||
Available For Sale and Held To Maturity Securities | ||
Number of Securities | N | 1 | 1 |
Less than 12 Months, Fair Value | $ 1,033 | $ 1,099 |
Less than 12 Months, Unrealized Losses | (1) | (2) |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total, Fair Value | 1,033 | 1,099 |
Total, Unrealized Losses | $ (1) | $ (2) |
Obligations of U.S. government-sponsored enterprises Mortgage backed securities - residential [Member] | ||
Available For Sale and Held To Maturity Securities | ||
Number of Securities | N | 2 | 7 |
Less than 12 Months, Fair Value | $ 1,376 | $ 4,424 |
Less than 12 Months, Unrealized Losses | (3) | (34) |
12 Months or Longer, Fair Value | 1,942 | 8,688 |
12 Months or Longer, Unrealized Losses | (13) | (40) |
Total, Fair Value | 3,318 | 13,112 |
Total, Unrealized Losses | $ (16) | $ (74) |
Obligations of U.S. government-sponsored enterprises Debt securities [Member] | ||
Available For Sale and Held To Maturity Securities | ||
Number of Securities | N | 3 | 1 |
Less than 12 Months, Fair Value | $ 172 | |
Less than 12 Months, Unrealized Losses | (4) | |
12 Months or Longer, Fair Value | 330 | 1,975 |
12 Months or Longer, Unrealized Losses | (3) | (25) |
Total, Fair Value | 502 | 1,975 |
Total, Unrealized Losses | $ (7) | $ (25) |
Private label mortgage-backed securities-residential [Member] | ||
Available For Sale and Held To Maturity Securities | ||
Number of Securities | N | 1 | 2 |
Less than 12 Months, Fair Value | ||
Less than 12 Months, Unrealized Losses | ||
12 Months or Longer, Fair Value | 2,758 | 223 |
12 Months or Longer, Unrealized Losses | (242) | (2) |
Total, Fair Value | 2,758 | 223 |
Total, Unrealized Losses | $ (242) | $ (2) |
Obligations of U.S. government agencies Mortgage backed securities - residential [Member] | ||
Available For Sale and Held To Maturity Securities | ||
Number of Securities | N | 2 | 3 |
Less than 12 Months, Fair Value | ||
Less than 12 Months, Unrealized Losses | ||
12 Months or Longer, Fair Value | 849 | 2,254 |
12 Months or Longer, Unrealized Losses | (90) | (99) |
Total, Fair Value | 849 | 2,254 |
Total, Unrealized Losses | $ (90) | $ (99) |
LOANS RECEIVABLE, NET (Narrativ
LOANS RECEIVABLE, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Loans Receivable, Net [Abstract] | ||
Loans receivable from directors, executives, affiliates | $ 4,500 | $ 4,600 |
Principal Additions - loans receivable-related parties | 290 | 1,900 |
Principal Repayments - loans receivable-related parties | 463 | 1,300 |
Value of loans serviced on behalf of others | 40,300 | 32,800 |
Mortgage Servicing Rights | 97 | 132 |
Escrow balance held for loans serviced on behalf of others | 114 | 130 |
Average Recorded Investment | 10,000 | 14,800 |
Interest Income not recognized on non-accrual loans | 217 | 356 |
Interest-only mortgage loans | 8,600 | 12,600 |
Loans pledged as collateral against Federal Home Loan Bank of New York borrowings | $ 109,400 | $ 93,900 |
LOANS RECEIVABLE, NET (Schedule
LOANS RECEIVABLE, NET (Schedule of Loans Receivable, Net) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | $ 457,871 | $ 423,290 |
Net deferred loan costs | 216 | 192 |
Allowance for loan losses | (3,056) | (2,886) |
Total loans receivable, net | 455,031 | 420,596 |
Unallocated [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | ||
Allowance for loan losses | (22) | (79) |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 9,355 | 10,305 |
Allowance for loan losses | (9) | (6) |
Commercial business [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 38,865 | 41,485 |
Allowance for loan losses | (976) | (969) |
Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 14,939 | 6,679 |
Allowance for loan losses | (361) | (453) |
One-to four-family residential [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 173,235 | 169,781 |
Allowance for loan losses | (542) | (395) |
Commercial real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 199,510 | 173,864 |
Allowance for loan losses | (1,075) | (931) |
Home equity lines of credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Gross | 21,967 | 21,176 |
Allowance for loan losses | $ (71) | $ (53) |
LOANS RECEIVABLE, NET (Schedu59
LOANS RECEIVABLE, NET (Schedule of Impaired Loans by Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With Specific Allowance | $ 997 | $ 1,690 |
Related Allowance | 39 | 201 |
Recorded Investment With No Specific Allowance | 8,256 | 8,947 |
Total Recorded Investment | 9,253 | 10,637 |
Total Unpaid Contractual Principal Balance | 10,099 | 11,967 |
Commercial real estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With Specific Allowance | ||
Related Allowance | ||
Recorded Investment With No Specific Allowance | 3,843 | 5,447 |
Total Recorded Investment | 3,843 | 5,447 |
Total Unpaid Contractual Principal Balance | 3,843 | 6,556 |
Commercial business [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With Specific Allowance | 997 | 1,690 |
Related Allowance | 39 | 201 |
Recorded Investment With No Specific Allowance | 250 | 66 |
Total Recorded Investment | 1,247 | 1,756 |
Total Unpaid Contractual Principal Balance | 1,850 | 1,756 |
Home equity lines of credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With Specific Allowance | ||
Related Allowance | ||
Recorded Investment With No Specific Allowance | 153 | 417 |
Total Recorded Investment | 153 | 417 |
Total Unpaid Contractual Principal Balance | 167 | 521 |
Impaired Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance | 201 | |
Total Unpaid Contractual Principal Balance | 3,100 | |
One-to four-family residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With Specific Allowance | ||
Related Allowance | ||
Recorded Investment With No Specific Allowance | 4,010 | 3,017 |
Total Recorded Investment | 4,010 | 3,017 |
Total Unpaid Contractual Principal Balance | $ 4,239 | $ 3,134 |
LOANS RECEIVABLE, NET (Schedu60
LOANS RECEIVABLE, NET (Schedule of Classes of the Loan Portfolio Summarized by Bank's Internal Risk Rating System) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Loans and Leases Receivable, Gross | $ 457,871 | $ 423,290 |
Substandard [Member] | ||
Loans and Leases Receivable, Gross | 8,733 | 13,916 |
Pass [Member] | ||
Loans and Leases Receivable, Gross | 447,932 | 408,058 |
Doubtful [Member] | ||
Loans and Leases Receivable, Gross | 997 | 1,106 |
Special Mention [Member] | ||
Loans and Leases Receivable, Gross | 209 | 210 |
Other [Member] | ||
Loans and Leases Receivable, Gross | 9,355 | 10,305 |
Other [Member] | Substandard [Member] | ||
Loans and Leases Receivable, Gross | ||
Other [Member] | Pass [Member] | ||
Loans and Leases Receivable, Gross | 9,355 | 10,305 |
Other [Member] | Doubtful [Member] | ||
Loans and Leases Receivable, Gross | ||
Other [Member] | Special Mention [Member] | ||
Loans and Leases Receivable, Gross | ||
Commercial business [Member] | ||
Loans and Leases Receivable, Gross | 38,865 | 41,485 |
Commercial business [Member] | Substandard [Member] | ||
Loans and Leases Receivable, Gross | 1,721 | |
Commercial business [Member] | Pass [Member] | ||
Loans and Leases Receivable, Gross | 37,868 | 39,764 |
Commercial business [Member] | Doubtful [Member] | ||
Loans and Leases Receivable, Gross | 997 | |
Commercial business [Member] | Special Mention [Member] | ||
Loans and Leases Receivable, Gross | ||
Home equity lines of credit [Member] | ||
Loans and Leases Receivable, Gross | 21,967 | 21,176 |
Home equity lines of credit [Member] | Substandard [Member] | ||
Loans and Leases Receivable, Gross | 153 | 1,740 |
Home equity lines of credit [Member] | Pass [Member] | ||
Loans and Leases Receivable, Gross | 21,814 | 19,436 |
Home equity lines of credit [Member] | Doubtful [Member] | ||
Loans and Leases Receivable, Gross | ||
Home equity lines of credit [Member] | Special Mention [Member] | ||
Loans and Leases Receivable, Gross | ||
Construction [Member] | ||
Loans and Leases Receivable, Gross | 14,939 | 6,679 |
Construction [Member] | Substandard [Member] | ||
Loans and Leases Receivable, Gross | 2,478 | 4,211 |
Construction [Member] | Pass [Member] | ||
Loans and Leases Receivable, Gross | 12,461 | 2,468 |
Construction [Member] | Doubtful [Member] | ||
Loans and Leases Receivable, Gross | ||
Construction [Member] | Special Mention [Member] | ||
Loans and Leases Receivable, Gross | ||
Commercial real estate [Member] | ||
Loans and Leases Receivable, Gross | 199,510 | 173,864 |
Commercial real estate [Member] | Substandard [Member] | ||
Loans and Leases Receivable, Gross | 2,672 | 3,309 |
Commercial real estate [Member] | Pass [Member] | ||
Loans and Leases Receivable, Gross | 196,838 | 169,239 |
Commercial real estate [Member] | Doubtful [Member] | ||
Loans and Leases Receivable, Gross | 1,106 | |
Commercial real estate [Member] | Special Mention [Member] | ||
Loans and Leases Receivable, Gross | 210 | |
One-to four-family residential [Member] | ||
Loans and Leases Receivable, Gross | 173,235 | 169,781 |
One-to four-family residential [Member] | Substandard [Member] | ||
Loans and Leases Receivable, Gross | 3,430 | 2,935 |
One-to four-family residential [Member] | Pass [Member] | ||
Loans and Leases Receivable, Gross | 169,596 | 166,846 |
One-to four-family residential [Member] | Doubtful [Member] | ||
Loans and Leases Receivable, Gross | ||
One-to four-family residential [Member] | Special Mention [Member] | ||
Loans and Leases Receivable, Gross | 209 | |
Unallocated [Member] | ||
Loans and Leases Receivable, Gross |
LOANS RECEIVABLE, NET (Schedu61
LOANS RECEIVABLE, NET (Schedule of Classes of the Loan Portfolio Summarized by Aging Categories) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | $ 453,127 | $ 416,644 |
Total Past Due | 4,744 | 6,646 |
Non - Accrual | 4,207 | 5,897 |
Total loans receivable | 457,871 | 423,290 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 537 | 749 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 4,207 | 5,897 |
Unallocated [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total loans receivable | ||
One-to four-family residential [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 170,705 | 166,993 |
Total Past Due | 2,530 | 2,788 |
Non - Accrual | 2,486 | 2,058 |
Total loans receivable | 173,235 | 169,781 |
One-to four-family residential [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 44 | 730 |
One-to four-family residential [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
One-to four-family residential [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 2,486 | 2,058 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 198,577 | 171,969 |
Total Past Due | 933 | 1,895 |
Non - Accrual | 443 | 1,895 |
Total loans receivable | 199,510 | 173,864 |
Commercial real estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 490 | |
Commercial real estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
Commercial real estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 443 | 1,895 |
Construction [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 14,939 | 6,679 |
Total Past Due | ||
Non - Accrual | ||
Total loans receivable | 14,939 | 6,679 |
Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
Construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
Home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 21,686 | 20,921 |
Total Past Due | 281 | 255 |
Non - Accrual | 281 | 255 |
Total loans receivable | 21,967 | 21,176 |
Home equity lines of credit [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
Home equity lines of credit [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
Home equity lines of credit [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 281 | 255 |
Commercial business [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 37,865 | 39,777 |
Total Past Due | 1,000 | 1,708 |
Non - Accrual | 997 | 1,689 |
Total loans receivable | 38,865 | 41,485 |
Commercial business [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 3 | 19 |
Commercial business [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
Commercial business [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | 997 | 1,689 |
Other [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Current | 9,355 | 10,305 |
Total Past Due | ||
Non - Accrual | ||
Total loans receivable | 9,355 | 10,305 |
Other [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
Other [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due | ||
Other [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total Past Due |
LOANS RECEIVABLE, NET (Schedu62
LOANS RECEIVABLE, NET (Schedule of Activity in the Allowance for Loan Losses by Loan Category) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Activity in the allowance for loan losses by loan category: | ||
Balance at beginning of period | $ 2,886 | $ 2,835 |
Charge-offs | (1,411) | (1,651) |
Recoveries | 215 | 438 |
Provision | 1,366 | 1,264 |
Balance at the end of period | 3,056 | 2,886 |
Commercial real estate [Member] | ||
Activity in the allowance for loan losses by loan category: | ||
Balance at beginning of period | 931 | 826 |
Charge-offs | (61) | (397) |
Recoveries | 100 | |
Provision | 105 | 502 |
Balance at the end of period | 1,075 | 931 |
Other [Member] | ||
Activity in the allowance for loan losses by loan category: | ||
Balance at beginning of period | 6 | 9 |
Charge-offs | (1) | |
Recoveries | ||
Provision | 3 | (2) |
Balance at the end of period | 9 | 6 |
One-to four-family residential [Member] | ||
Activity in the allowance for loan losses by loan category: | ||
Balance at beginning of period | 395 | 402 |
Charge-offs | (133) | (176) |
Recoveries | 400 | |
Provision | 280 | (231) |
Balance at the end of period | 542 | 395 |
Commercial business [Member] | ||
Activity in the allowance for loan losses by loan category: | ||
Balance at beginning of period | 969 | 643 |
Charge-offs | (1,119) | (274) |
Recoveries | 28 | |
Provision | 1,098 | 600 |
Balance at the end of period | 976 | 969 |
Home equity lines of credit [Member] | ||
Activity in the allowance for loan losses by loan category: | ||
Balance at beginning of period | 53 | 62 |
Charge-offs | (98) | (461) |
Recoveries | 80 | |
Provision | 36 | 452 |
Balance at the end of period | 71 | 53 |
Construction [Member] | ||
Activity in the allowance for loan losses by loan category: | ||
Balance at beginning of period | 453 | 784 |
Charge-offs | (342) | |
Recoveries | 7 | 38 |
Provision | (99) | (27) |
Balance at the end of period | 361 | 453 |
Unallocated [Member] | ||
Activity in the allowance for loan losses by loan category: | ||
Balance at beginning of period | 79 | 109 |
Charge-offs | ||
Recoveries | ||
Provision | (57) | (30) |
Balance at the end of period | $ 22 | $ 79 |
LOANS RECEIVABLE, NET (Schedu63
LOANS RECEIVABLE, NET (Schedule of ALL by Loan Category) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | $ 3,056 | $ 2,886 |
Individually evaluated for impairment | 39 | 201 |
Collectively evaluated for impairment | 3,017 | 2,685 |
Balance - Loans receivable | 457,871 | 423,290 |
Loan balance individually evaluated for impairment | 9,253 | 10,637 |
Loan balance collectively evaluated for impairment | 448,618 | 412,653 |
Unallocated [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 22 | 79 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 22 | 79 |
Balance - Loans receivable | ||
Loan balance individually evaluated for impairment | ||
Other [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 9 | 6 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 9 | 6 |
Balance - Loans receivable | 9,355 | 10,305 |
Loan balance individually evaluated for impairment | ||
Loan balance collectively evaluated for impairment | 9,355 | 10,305 |
Commercial business [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 976 | 969 |
Individually evaluated for impairment | 39 | 201 |
Collectively evaluated for impairment | 937 | 768 |
Balance - Loans receivable | 38,865 | 41,485 |
Loan balance individually evaluated for impairment | 1,247 | 1,756 |
Loan balance collectively evaluated for impairment | 37,618 | 39,729 |
Construction [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 361 | 453 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 361 | 453 |
Balance - Loans receivable | 14,939 | 6,679 |
Loan balance individually evaluated for impairment | ||
Loan balance collectively evaluated for impairment | 14,939 | 6,679 |
One-to four-family residential [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 542 | 395 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 542 | 395 |
Balance - Loans receivable | 173,235 | 169,781 |
Loan balance individually evaluated for impairment | 4,010 | 3,017 |
Loan balance collectively evaluated for impairment | 169,225 | 166,764 |
Commercial real estate [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 1,075 | 931 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 1,075 | 931 |
Balance - Loans receivable | 199,510 | 173,864 |
Loan balance individually evaluated for impairment | 3,843 | 5,447 |
Loan balance collectively evaluated for impairment | 195,667 | 168,417 |
Home equity lines of credit [Member] | ||
Allowance for Loan Losses: | ||
Balance - Allowance for loans losses | 71 | 53 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 71 | 53 |
Balance - Loans receivable | 21,967 | 21,176 |
Loan balance individually evaluated for impairment | 153 | 417 |
Loan balance collectively evaluated for impairment | $ 21,814 | $ 20,759 |
LOANS RECEIVABLE, NET (Schedu64
LOANS RECEIVABLE, NET (Schedule of Troubled Debt Restructuring) (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016USD ($)N | Sep. 30, 2015USD ($)N | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | N | 2 | |
Investment Before TDR Modification | $ 650 | |
Investment After TDR Modification | $ 713 | |
One-to four-family residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | N | 2 | |
Investment Before TDR Modification | $ 650 | |
Investment After TDR Modification | $ 713 |
ACCRUED INTEREST RECEIVABLE (De
ACCRUED INTEREST RECEIVABLE (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Accrued interest receivable | $ 1,710 | $ 1,703 |
Mortgage-backed Securities [Member] | ||
Accrued interest receivable | 105 | 103 |
Loans [Member] | ||
Accrued interest receivable | 1,548 | 1,543 |
Investment Securities [Member] | ||
Accrued interest receivable | $ 57 | $ 57 |
PREMISES AND EQUIPMENT (Narrati
PREMISES AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Depreciation expense | $ 778 | $ 845 |
Premises and equipment, net | 18,084 | 17,818 |
Hungaria Urban Renewal [Member] | Land [Member] | ||
Premises and equipment, net | 3,100 | 3,100 |
Hungaria Urban Renewal [Member] | Furniture, Fixtures and Equipment [Member] | ||
Premises and equipment, net | 0 | 0 |
Hungaria Urban Renewal [Member] | Buildings and Improvements [Member] | ||
Premises and equipment, net | $ 10,000 | $ 10,300 |
PREMISES AND EQUIPMENT (Schedul
PREMISES AND EQUIPMENT (Schedule of Premises and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment, Gross | $ 29,030 | $ 28,088 |
Less accumulated depreciation | (10,946) | (10,270) |
Property, Plant and Equipment, Net | 18,084 | 17,818 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment, Gross | $ 22,341 | 21,449 |
Buildings and Improvements [Member] | Minimum [Member] | ||
Estimated Useful Lives | 10 years | |
Buildings and Improvements [Member] | Maximum [Member] | ||
Estimated Useful Lives | 40 years | |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment, Gross | $ 2,878 | 2,828 |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||
Estimated Useful Lives | 5 years | |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||
Estimated Useful Lives | 10 years | |
Land [Member] | ||
Property, Plant and Equipment, Gross | $ 3,811 | $ 3,811 |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
OTHER REAL ESTATE OWNED [Abstract]. | ||
Other real estate owned ("OREO") | $ 12,082 | $ 16,192 |
Write-downs on other real estate owned | $ 301 | $ 66 |
DEPOSITS (Narrative) (Details)
DEPOSITS (Narrative) (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Deposits [Abstract] | |
Aggregate of deposit accounts with a minimum denomination of $250,000 | $ 223,100 |
Aggregated of certificate deposits with balance greater than $250,000 | $ 30,100 |
DEPOSITS (Schedule of Deposits
DEPOSITS (Schedule of Deposits by Type of Account) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Deposits [Abstract] | ||
Demand accounts | $ 94,462 | $ 87,915 |
Savings accounts | 100,706 | 90,196 |
NOW accounts | 49,045 | 41,457 |
Money market accounts | 114,458 | 103,593 |
Certificates of deposit | 114,355 | 122,088 |
Retirement accounts | 19,624 | 21,020 |
Deposits, Total | $ 492,650 | $ 466,269 |
DEPOSITS (Schedule of Contractu
DEPOSITS (Schedule of Contractual Maturities of Certificate of Deposit) (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Year Ending September 30, | |
2,017 | $ 56,493 |
2,018 | 33,308 |
2,019 | 27,600 |
2,020 | 5,080 |
2021 and after | 11,498 |
Certificates of deposit (including retirement accounts) | $ 133,979 |
BORROWINGS (Narrative) (Details
BORROWINGS (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Federal Home Loan Bank of New York Advances [Abstract] | ||
Federal Home Loan Bank of New York advances | $ 36,040 | $ 31,594 |
Weighted average interest rate | 2.12% | 2.38% |
Available credit from FHLBNY | $ 49,100 | $ 39,800 |
Securities Sold Under Reverse Repurchase Agreements | ||
Repurchase agreements |
BORROWINGS (Schedule of Long Te
BORROWINGS (Schedule of Long Term FHLBNY Advances) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Year Ending September 30, | ||
2,017 | $ 5,000 | |
2,018 | 5,100 | |
2,019 | 8,940 | |
2,020 | 10,294 | |
2,021 | 2,500 | |
Thereafter | 4,206 | |
Long term FHLBNY advances | $ 36,040 | $ 31,594 |
BORROWINGS (Schedule of Short-T
BORROWINGS (Schedule of Short-Term Arrangements With the FHLBNY) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Disclosure [Abstract] | ||
Balance at end of year | ||
Weighted average balance during the year | $ 1,080 | 2,958 |
Maximum month-end balance during the year | $ 16,200 | $ 18,500 |
Average interest rate during the year | 0.56% | 0.37% |
SERVICING POLICY (Narrative) (D
SERVICING POLICY (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | ||
Loans sold with servicing retained | $ 9,217 | $ 9,722 |
Loans sold, servicing released | 0 | 0 |
Value of loans sold still being serviced | 11,800 | 13,800 |
SBA Loans being serviced | $ 20,300 | $ 14,600 |
SERVICING POLICY (Schedule of A
SERVICING POLICY (Schedule of Activity in Mortgage Servicing Rights) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | ||
Mortgage servicing rights, beginning balance | $ 132 | $ 175 |
Origination of mortgage servicing rights | 20 | |
Amortization | (35) | (63) |
Mortgage servicing rights, ending balance | $ 97 | $ 132 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Net change in valuation allowance | $ 63 |
State [Member] | |
Operating loss carry forwards | $ 5,400 |
Operating loss carry forwards, expiration date | Dec. 31, 2029 |
Federal [Member] | |
Operating loss carry forwards | $ 4,000 |
Operating loss carry forwards, expiration date | Dec. 31, 2029 |
Tax loss reserves, base year amount | $ 1,258 |
INCOME TAXES (Schedule Componen
INCOME TAXES (Schedule Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 59 | $ 10 |
Deferred | 605 | 403 |
Total income tax expense | $ 664 | $ 413 |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliation of Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Reconciliation of income tax | ||
Income tax expense at statutory rate | $ 596 | $ 445 |
Increase (decrease) resulting from: | ||
State income taxes, net of federal income tax benefit | 161 | 69 |
Tax-exempt income, net | (96) | (99) |
Nondeductible expenses | 5 | 3 |
Employee stock ownership plan | (3) | (7) |
Other, net | 1 | 2 |
Total income tax expense | $ 664 | $ 413 |
INCOME TAXES (Schedule of Major
INCOME TAXES (Schedule of Major Sources of Temporary Differences and Their Deferred Tax Effect) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Temporary Differences and Deferred Tax Effect | ||
Allowance for loan losses | $ 1,221 | $ 1,153 |
Deferred loan fees | 93 | 448 |
Employee benefits | 82 | 168 |
Charitable contributions | 14 | |
Net operating losses | 1,670 | 1,938 |
Alternative minimum tax credit | 252 | 243 |
Unrealized loss, minimum pension liability | 793 | 696 |
OREO | 317 | 307 |
Straight line rent | 178 | 163 |
Gross deferred tax asset | 4,606 | 5,130 |
Depreciation | (1,443) | (1,506) |
Discount accretion on investments | (118) | (117) |
Net unrealized gain, investment securities available-for-sale | (18) | (27) |
Mortgage servicing rights | (39) | (53) |
Gross deferred tax liability | (1,618) | (1,703) |
Net deferred tax asset | 2,988 | 3,427 |
Valuation allowance | (83) | (20) |
Net deferred tax asset, included in other assets | $ 2,905 | $ 3,407 |
PENSION PLAN (Narrative) (Detai
PENSION PLAN (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Long-term investment objective, equities | 65.00% | |
Long-term investment objective, debt | 35.00% | |
Funding guidelines, description | the Plan is underfunded under the Guidelines, the bond fund portion will be temporarily increased to 50% in order to lessen asset value volatility. When the Plan is no longer underfunded, the bond fund portion will be decreased back to 35%. Asset rebalancing is performed at least annually, with interim adjustments made when the investment mix varies more than 5% from the target (i.e., a 10% target range). | |
Weighted average discount rate | 3.75% | 4.50% |
Expected long-term rate of return on assets | 7.00% | 7.00% |
Expected contributions | $ 78 | |
Actuarial losses | 1,984 | $ 1,742 |
Acturial losses, income tax effects | 793 | $ 696 |
Acturial losses expected to be amortized within next year | $ 166 | |
Maximum [Member] | ||
Expected long-term rate of return on assets | 7.00% | |
Maximum [Member] | Equity Securities [Member] | ||
Expected long-term rate of return on assets | 8.00% | |
Target asset allocation | 70.00% | |
Maximum [Member] | Fixed Income Securities [Member] | ||
Expected long-term rate of return on assets | 5.00% | |
Maximum [Member] | Debt Securities [Member] | ||
Target asset allocation | 60.00% | |
Minimum [Member] | ||
Expected long-term rate of return on assets | 5.00% | |
Minimum [Member] | Equity Securities [Member] | ||
Expected long-term rate of return on assets | 6.00% | |
Target asset allocation | 40.00% | |
Minimum [Member] | Fixed Income Securities [Member] | ||
Expected long-term rate of return on assets | 3.00% | |
Minimum [Member] | Debt Securities [Member] | ||
Target asset allocation | 30.00% |
PENSION PLAN (Schedule of Plan'
PENSION PLAN (Schedule of Plan's Funded Status and Amounts Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Actuarial present value of benefit obligations | $ 4,337 | $ 4,337 | $ 4,779 | $ 4,337 |
Change in benefit obligations | ||||
Projected benefit obligation, beginning | 4,337 | 3,890 | ||
Interest cost | 191 | 170 | ||
Actuarial loss | 441 | 463 | ||
Annuity payments and lump sum distributions | (190) | (186) | ||
Projected benefit obligation, end | 4,779 | 4,337 | ||
Change in plan assets | ||||
Fair value of assets, beginning | 2,766 | 2,860 | ||
Actual return on plan assets | 251 | (84) | ||
Employer contributions | 124 | 176 | ||
Annuity payments and lump sum distributions | (190) | (186) | ||
Fair value of assets, end | $ 2,951 | $ 2,766 | ||
Funded status included with other liabilities | $ (1,828) | $ (1,571) |
PENSION PLAN (Schedule of Net P
PENSION PLAN (Schedule of Net Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Service cost benefits earned during the year | ||
Interest cost on projected benefit obligation | 191 | 170 |
Expected return on plan assets | (191) | (198) |
Amortization of unrecognized net loss | 139 | 75 |
Net Pension Cost | $ 139 | $ 47 |
PENSION PLAN (Schedule of Pensi
PENSION PLAN (Schedule of Pension Plan Weighted-Average Asset Allocations) (Details) | Sep. 30, 2016 | Sep. 30, 2015 |
Weighted average asset allocation (percentage) | 100.00% | 100.00% |
Money Market Funds [Member] | ||
Weighted average asset allocation (percentage) | 0.00% | 1.00% |
Equity Securities [Member] | ||
Weighted average asset allocation (percentage) | 64.00% | 62.00% |
Debt Securities [Member] | ||
Weighted average asset allocation (percentage) | 36.00% | 37.00% |
PENSION PLAN (Schedule of Expec
PENSION PLAN (Schedule of Expected Benefit Payments) (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Estimated Future Benefit Payments | |
October 1, 2016 through September 30, 2017 | $ 203 |
October 1, 2017 through September 30, 2018 | 204 |
October 1, 2018 through September 30, 2019 | 207 |
October 1, 2019 through September 30, 2020 | 209 |
October 1, 2020 through September 30, 2021 | 209 |
October 1, 2021 through September 30, 2026 | 1,136 |
Benefit payments expected to be paid, total | $ 2,168 |
PENSION PLAN (Schedule of Fair
PENSION PLAN (Schedule of Fair Value Measurements of Plan Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Investments | $ 2,951 | $ 2,766 |
Money Market Funds [Member] | ||
Investments | 5 | 40 |
Intermediate-Term Core [Member] | ||
Investments | 1,055 | 1,020 |
Non-U.S. Core [Member] | ||
Investments | 686 | 638 |
Small-Cap Core [Member] | ||
Investments | 193 | 171 |
Mid-Cap Core [Member] | ||
Investments | 198 | 180 |
Large-Cap Core [Member] | ||
Investments | 414 | 366 |
Large-Cap Value [Member] | ||
Investments | 400 | 351 |
Fair Value, Inputs, Level 3 [Member] | ||
Investments | ||
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ||
Investments | ||
Fair Value, Inputs, Level 3 [Member] | Intermediate-Term Core [Member] | ||
Investments | ||
Fair Value, Inputs, Level 3 [Member] | Non-U.S. Core [Member] | ||
Investments | ||
Fair Value, Inputs, Level 3 [Member] | Small-Cap Core [Member] | ||
Investments | ||
Fair Value, Inputs, Level 3 [Member] | Mid-Cap Core [Member] | ||
Investments | ||
Fair Value, Inputs, Level 3 [Member] | Large-Cap Core [Member] | ||
Investments | ||
Fair Value, Inputs, Level 3 [Member] | Large-Cap Value [Member] | ||
Investments | ||
Fair Value, Inputs, Level 1 [Member] | ||
Investments | 2,951 | 2,766 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Investments | 5 | 40 |
Fair Value, Inputs, Level 1 [Member] | Intermediate-Term Core [Member] | ||
Investments | 1,055 | 1,020 |
Fair Value, Inputs, Level 1 [Member] | Non-U.S. Core [Member] | ||
Investments | 686 | 638 |
Fair Value, Inputs, Level 1 [Member] | Small-Cap Core [Member] | ||
Investments | 193 | 171 |
Fair Value, Inputs, Level 1 [Member] | Mid-Cap Core [Member] | ||
Investments | 198 | 180 |
Fair Value, Inputs, Level 1 [Member] | Large-Cap Core [Member] | ||
Investments | 414 | 366 |
Fair Value, Inputs, Level 1 [Member] | Large-Cap Value [Member] | ||
Investments | 400 | 351 |
Fair Value, Inputs, Level 2 [Member] | ||
Investments | ||
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||
Investments | ||
Fair Value, Inputs, Level 2 [Member] | Intermediate-Term Core [Member] | ||
Investments | ||
Fair Value, Inputs, Level 2 [Member] | Non-U.S. Core [Member] | ||
Investments | ||
Fair Value, Inputs, Level 2 [Member] | Small-Cap Core [Member] | ||
Investments | ||
Fair Value, Inputs, Level 2 [Member] | Mid-Cap Core [Member] | ||
Investments | ||
Fair Value, Inputs, Level 2 [Member] | Large-Cap Core [Member] | ||
Investments | ||
Fair Value, Inputs, Level 2 [Member] | Large-Cap Value [Member] | ||
Investments |
NONQUALIFIED COMPENSATION PLAN
NONQUALIFIED COMPENSATION PLAN (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Postemployment Benefits [Abstract] | ||
Life Insurance Contracts, Value | $ 11,257 | $ 10,962 |
401(K) EMPLOYEE CONTRIBUTION 88
401(K) EMPLOYEE CONTRIBUTION PLAN (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||
Employer's contribution to the plan | $ 108 | $ 93 |
COMMITMENTS (Narrative) (Detail
COMMITMENTS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rental Expense | $ 764 | $ 754 |
COMMITMENTS (Schedule of Lease
COMMITMENTS (Schedule of Lease Commitments) (Details) $ in Thousands | Sep. 30, 2016USD ($) |
September 30 | |
2,017 | $ 627 |
2,018 | 627 |
2,019 | 645 |
2,020 | 651 |
2,021 | 663 |
Thereafter | 3,052 |
Future minimum payments under non-cancelable operating leases | $ 6,265 |
FINANCIAL INSTRUMENTS WITH OF91
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Schedule of Financial Instruments Whose Contract Amounts Representing Credit Risk) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments - contract amounts | $ 58,212 | $ 55,267 |
Loan Origination Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments - contract amounts | 5,272 | 1,597 |
Loan Origination Commitments One [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments - contract amounts | 6,746 | 7,937 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments - contract amounts | 306 | 694 |
Unused lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments - contract amounts | $ 45,888 | $ 45,039 |
FAIR VALUE DISCLOSURES (Narrati
FAIR VALUE DISCLOSURES (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016USD ($)N | Sep. 30, 2015USD ($) | |
Total Unpaid Contractual Principal Balance | $ 10,099 | $ 11,967 |
Specific loss reserves | $ 39 | 201 |
Impaired Loans [Member] | ||
Number of impaired loans | N | 7 | |
Total Unpaid Contractual Principal Balance | $ 3,100 | |
Cumulative write-down of impaired loans | 848 | |
Specific loss reserves | 201 | |
Commercial business [Member] | ||
Total Unpaid Contractual Principal Balance | 1,850 | 1,756 |
Specific loss reserves | 39 | 201 |
Home equity lines of credit [Member] | ||
Total Unpaid Contractual Principal Balance | 167 | 521 |
Specific loss reserves | ||
Commercial real estate [Member] | ||
Total Unpaid Contractual Principal Balance | 3,843 | 6,556 |
Specific loss reserves | ||
One-to four-family residential [Member] | ||
Total Unpaid Contractual Principal Balance | 4,239 | 3,134 |
Specific loss reserves |
FAIR VALUE DISCLOSURES (Schedul
FAIR VALUE DISCLOSURES (Schedule of Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Fair value measured on recurring basis: | ||
Securities available for sale | $ 5,234 | $ 6,064 |
Obligations of U.S. government-sponsored enterprises Mortgage backed securities - residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 5,127 | 5,914 |
Private label mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 107 | 150 |
Fair Value, Measurements, Recurring [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 5,234 | 6,064 |
Fair Value, Measurements, Recurring [Member] | Obligations of U.S. government-sponsored enterprises Mortgage backed securities - residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 5,127 | 5,914 |
Fair Value, Measurements, Recurring [Member] | Private label mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 107 | 150 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of U.S. government-sponsored enterprises Mortgage backed securities - residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Private label mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of U.S. government-sponsored enterprises Mortgage backed securities - residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Private label mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 5,234 | 6,064 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of U.S. government-sponsored enterprises Mortgage backed securities - residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | 5,127 | 5,914 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Private label mortgage-backed securities-residential [Member] | ||
Fair value measured on recurring basis: | ||
Securities available for sale | $ 107 | $ 150 |
FAIR VALUE DISCLOSURES (Sched94
FAIR VALUE DISCLOSURES (Schedule of Assets Measured at Fair Value On a Non-Recurring Basis) (Details) - Fair Value Measured on a Nonrecurring Basis [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Fair Value [Member] | ||
Impaired loans | $ 958 | $ 1,489 |
Other real estate owned | 12,082 | 16,192 |
Assets measured at fair value on a non-recurring basis | 13,040 | 17,681 |
Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans | ||
Other real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans | 958 | 1,489 |
Other real estate owned | 12,082 | 16,192 |
Assets measured at fair value on a non-recurring basis | 13,040 | 17,681 |
Fair Value, Inputs, Level 1 [Member] | ||
Impaired loans | ||
Other real estate owned | ||
Assets measured at fair value on a non-recurring basis |
FAIR VALUE DISCLOSURES (Sched95
FAIR VALUE DISCLOSURES (Schedule of Additional Quantitative Information About Assets Measured at Fair Value) (Details) - Fair Value Measured on a Nonrecurring Basis [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Impaired Loans [Member] | |||
Fair value estimate | $ 958 | $ 1,489 | |
Valuation techniques and Unobservable Input | [1],[2] | Appraisal of collateral; Appraisal adjustments | Appraisal of collateral; Appraisal adjustments |
Impaired Loans [Member] | Weighted Average [Member] | |||
Fair value input- appraisal of collateral | (19.50%) | (8.00%) | |
Impaired Loans [Member] | Maximum [Member] | |||
Fair value input- appraisal of collateral | (36.50%) | (40.00%) | |
Impaired Loans [Member] | Minimum [Member] | |||
Fair value input- appraisal of collateral | (5.80%) | (16.00%) | |
Other Real Estate Owned [Member] | |||
Fair value estimate | $ 12,082 | $ 16,192 | |
Valuation techniques and Unobservable Input | [1],[2] | Appraisal of collateral; Liquidation expenses | Appraisal of collateral; Liquidation expenses |
Other Real Estate Owned [Member] | Weighted Average [Member] | |||
Fair value input- appraisal of collateral | (22.40%) | (15.10%) | |
Other Real Estate Owned [Member] | Maximum [Member] | |||
Fair value input- appraisal of collateral | (41.60%) | (41.20%) | |
Other Real Estate Owned [Member] | Minimum [Member] | |||
Fair value input- appraisal of collateral | (3.90%) | 0.00% | |
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. | ||
[2] | Fair value is generally determined through independent appraisals for the underlying collateral, which generally include various level 3 inputs which are not identifiable. |
FAIR VALUE DISCLOSURES (Sched96
FAIR VALUE DISCLOSURES (Schedule of the Carrying Amount, Fair Value, and Placement in the Fair Value Hierarchy of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Financial instruments - assets | ||
Investment securities held-to-maturity | $ 53,849 | $ 53,248 |
Fair Value [Member] | ||
Financial instruments - assets | ||
Investment securities held-to-maturity | 53,849 | 53,248 |
Loans | 462,868 | 425,890 |
Financial instruments - liabilities | ||
Certificate of deposit | 135,162 | 144,150 |
Borrowings | 36,473 | 32,231 |
Reported Value [Member] | ||
Financial instruments - assets | ||
Investment securities held-to-maturity | 52,934 | 52,614 |
Loans | 455,031 | 420,596 |
Financial instruments - liabilities | ||
Certificate of deposit | 133,979 | 143,108 |
Borrowings | 36,040 | 31,594 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial instruments - assets | ||
Loans | ||
Financial instruments - liabilities | ||
Certificate of deposit | ||
Borrowings | ||
Fair Value, Inputs, Level 3 [Member] | ||
Financial instruments - assets | ||
Loans | 462,868 | 425,890 |
Financial instruments - liabilities | ||
Certificate of deposit | ||
Borrowings | ||
Fair Value, Inputs, Level 2 [Member] | ||
Financial instruments - assets | ||
Investment securities held-to-maturity | 53,849 | 53,248 |
Loans | ||
Financial instruments - liabilities | ||
Certificate of deposit | 135,162 | 144,150 |
Borrowings | $ 36,473 | $ 32,231 |
REGULATORY CAPITAL (Details)
REGULATORY CAPITAL (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Magyar Bancorp, Inc. [Member] | ||
Total Capital | ||
Total Capital | $ 51,940 | $ 50,555 |
Total Capital (to risk-weighted assets) ratio | 12.55% | 12.98% |
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital | $ 48,884 | $ 47,669 |
Tier 1 Capital (to risk-weighted assets) ratio | 11.82% | 12.24% |
Common Equity Tier 1 Capital | $ 48,884 | $ 47,669 |
Common Equity Tier 1 Capital (to risk-weighted assets) ratio | 11.82% | 12.24% |
Tier 1 Leverage Capital (to average assets) | ||
Tier 1 Capital | $ 48,884 | $ 47,669 |
Tier 1 Capital (to average assets) ratio | 8.53% | 8.75% |
Magyar Bank [Member] | ||
Total Capital | ||
Total Capital | $ 50,447 | $ 48,584 |
Total Capital (to risk-weighted assets) ratio | 12.19% | 12.47% |
Minimum amount of capital for adequacy purposes | $ 33,099 | $ 31,158 |
Minimum amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
Minimum Capital required to be well-capitalized | $ 41,374 | $ 38,947 |
Minimum Capital required to be well-capitalized, ratio | 10.00% | 10.00% |
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital | $ 47,391 | $ 45,698 |
Tier 1 Capital (to risk-weighted assets) ratio | 11.45% | 11.73% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 16,550 | $ 15,579 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized | $ 24,825 | $ 23,368 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 6.00% | 6.00% |
Common Equity Tier 1 Capital | $ 47,391 | $ 45,698 |
Common Equity Tier 1 Capital (to risk-weighted assets) ratio | 11.45% | 11.73% |
Minimum amount of common equity Tier 1 Capital for adequacy purposes | $ 18,618 | $ 17,526 |
Minimum amount of common equity Tier 1 Capital for adequacy purposes, ratio | 4.50% | 4.50% |
Minimum common equity Tier 1 Capital required to be well-capitalized | $ 24,825 | $ 23,368 |
Minimum common equity Tier 1 Capital required to be well-capitalized, ratio | 6.00% | 6.00% |
Tier 1 Leverage Capital (to average assets) | ||
Tier 1 Capital | $ 47,391 | $ 45,698 |
Tier 1 Capital (to average assets) ratio | 8.27% | 8.39% |
Minimum amount of Tier 1 Capital for adequacy purposes | $ 22,914 | $ 21,795 |
Minimum amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Minimum Tier 1 Capital required to be well-capitalized | $ 28,642 | $ 27,244 |
Minimum Tier 1 Capital required to be well-capitalized, ratio | 5.00% | 5.00% |