Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 23, 2013 | Mar. 31, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'FMTB | ' | ' |
Entity Registrant Name | 'FAIRMOUNT BANCORP, INC. | ' | ' |
Entity Central Index Key | '0001477968 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 484,839 | ' |
Entity Public Float | ' | ' | $8,400,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Assets | ' | ' |
Cash and due from banks | $850,941 | $513,787 |
Interest-bearing deposits in other banks | 858,746 | 337,379 |
Federal funds sold | 2,141,774 | 3,512,020 |
Cash and cash equivalents | 3,851,461 | 4,363,186 |
Certificates of deposit | 3,783,568 | 3,531,991 |
Securities available for sale, at fair value | 5,791,725 | 7,803,575 |
Securities held to maturity, at amortized cost | 3,756,238 | 3,636,972 |
Federal Home Loan Bank stock, at cost | 453,700 | 479,700 |
Loans, net of allowances for loan and lease losses of $733,451 at September 30, 2013 and $617,474 at September 30, 2012 | 55,375,365 | 54,650,111 |
Accrued interest receivable | 233,680 | 290,304 |
Premises and equipment, net | 3,155,062 | 3,236,995 |
Foreclosed assets | 20,000 | 295,750 |
Cash surrender value of life insurance | ' | 70,736 |
Deferred income tax assets | 287,746 | 211,099 |
Prepaid expenses and other assets | 319,604 | 473,334 |
Total assets | 77,028,149 | 79,043,753 |
Deposits | ' | ' |
Noninterest-bearing deposits | 561,563 | 780,336 |
Interest-bearing deposits | 4,075,532 | 4,355,762 |
Savings deposits | 16,850,314 | 15,461,977 |
Certificates of deposit | 34,442,370 | 37,427,659 |
Total deposits | 55,929,779 | 58,025,734 |
Federal Home Loan Bank advances | 8,000,000 | 8,000,000 |
Accrued interest payable | 42,503 | 42,962 |
Deferred compensation liability | ' | 8,170 |
Accounts payable and other liabilities | 52,638 | 111,697 |
Total liabilities | 64,024,920 | 66,188,563 |
Commitments and contingencies | ' | ' |
Stockholders' Equity | ' | ' |
Preferred stock, $0.01 par value; authorized 1,000,000; none issued | ' | ' |
Common stock, $0.01 par value; authorized 4,000,000; 500,314 issued; 484,839 shares outstanding at September 30, 2013 and 2012, respectively | 5,003 | 5,003 |
Additional paid in capital | 4,040,748 | 3,979,972 |
Unearned common stock held by: | ' | ' |
Employee Stock Ownership Plan | -209,736 | -251,607 |
Recognition and Retention Plan | -245,145 | -162,271 |
Retained earnings | 9,334,634 | 9,077,164 |
Accumulated other comprehensive income | 77,725 | 206,929 |
Total stockholders' equity | 13,003,229 | 12,855,190 |
Total liabilities and stockholders' equity | $77,028,149 | $79,043,753 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Loans and lease losses, allowances | $733,451 | $617,474 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 4,000,000 | 4,000,000 |
Common stock, shares issued | 500,314 | 500,314 |
Common stock, shares outstanding | 484,839 | 484,839 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Interest and dividend income: | ' | ' |
Interest on loans | $3,147,659 | $3,319,533 |
Interest and dividends on investments | 270,823 | 394,831 |
Total interest income | 3,418,482 | 3,714,364 |
Interest expense: | ' | ' |
Interest on deposits | 465,117 | 646,636 |
Interest on borrowings | 268,016 | 273,451 |
Total interest expense | 733,133 | 920,087 |
Net interest income | 2,685,349 | 2,794,277 |
Provision for loan and lease losses | 500,000 | 200,000 |
Net interest income after provision for loan and lease losses | 2,185,349 | 2,594,277 |
Non-interest income: | ' | ' |
Service fees on deposit accounts | 5,269 | 4,957 |
Other service charges, commissions and fees | 86,448 | 67,613 |
Gain on sale of assets | 116,480 | 4,737 |
Other non-interest income | 39,555 | 14,330 |
Total non-interest income | 247,752 | 91,637 |
Non-interest expense: | ' | ' |
Salaries, fees and employment | 1,150,622 | 1,088,001 |
Premises and equipment | 212,934 | 196,358 |
Professional fees | 198,059 | 283,632 |
Data processing | 127,060 | 114,336 |
FDIC premiums and regulatory assessments | 104,304 | 97,089 |
Insurance and bond premiums | 31,983 | 37,962 |
Stationery, printing and supplies | 25,675 | 35,704 |
Provision for losses and costs on real estate acquired through foreclosure | 24,747 | 251,630 |
Other operating expenses | 119,520 | 140,483 |
Total non-interest expense | 1,994,904 | 2,245,195 |
Income before income taxes | 438,197 | 440,719 |
Income taxes | 180,727 | 114,427 |
Income before extraordinary item | 257,470 | 326,292 |
Extraordinary item, gain on business combination | ' | 1,022,074 |
Net income | $257,470 | $1,348,366 |
Basic and dilutive earnings per common share: | ' | ' |
Net income before extraordinary item, basic | $0.58 | $0.69 |
Extraordinary item, gain on business combination, basic | ' | $2.17 |
Net income, basic | $0.58 | $2.86 |
Basic weighted average shares outstanding | 445,643 | 472,278 |
Net income before extraordinary item, dilutive | $0.56 | $0.68 |
Extraordinary item, gain on business combination, dilutive | ' | $2.14 |
Net income, dilutive | $0.56 | $2.82 |
Dilutive weighted average shares outstanding | 456,782 | 478,719 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Net income | $257,470 | $1,348,366 |
Other comprehensive income, net of tax: | ' | ' |
Unrealized gain (loss) on investment securities available for sale | -329,864 | 8,806 |
Reclassification adjustment for realized gain on investment securities available for sale included in net income | -116,480 | -896 |
Total investment securities available for sale | -213,384 | 7,910 |
Total other comprehensive income (loss), net of tax of $84,180 and $506, respectively | -129,204 | 7,404 |
Comprehensive income | $128,266 | $1,355,770 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Total other comprehensive income (loss), tax | $84,180 | $506 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Unearned ESOP Shares | Unearned RRP Shares | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning Balance at Sep. 30, 2011 | $11,477,337 | $4,440 | $3,774,574 | ($230,000) | ' | $7,728,798 | $199,525 |
Net income | 1,348,366 | ' | ' | ' | ' | 1,348,366 | ' |
Other comprehensive income | 7,404 | ' | ' | ' | ' | ' | 7,404 |
Total comprehensive income | 1,355,770 | ' | ' | ' | ' | ' | ' |
Issuance of common stock | 452,219 | 563 | 451,656 | ' | ' | ' | ' |
Acquisition of unearned ESOP shares | -63,478 | ' | ' | -63,478 | ' | ' | ' |
Acquisition of unearned RRP shares | -37,168 | ' | ' | ' | -37,168 | ' | ' |
Repurchase of common stock | -389,240 | ' | -264,137 | ' | -125,103 | ' | ' |
ESOP shares released for allocation | 59,750 | ' | 17,879 | 41,871 | ' | ' | ' |
Ending Balance at Sep. 30, 2012 | 12,855,190 | 5,003 | 3,979,972 | -251,607 | -162,271 | 9,077,164 | 206,929 |
Net income | 257,470 | ' | ' | ' | ' | 257,470 | ' |
Other comprehensive income | -129,204 | ' | ' | ' | ' | ' | -129,204 |
Total comprehensive income | 128,266 | ' | ' | ' | ' | ' | ' |
Repurchase of common stock | -133,080 | ' | ' | ' | -133,080 | ' | ' |
ESOP shares released for allocation | 71,676 | ' | 29,805 | 41,871 | ' | ' | ' |
RRP shares released for allocation | ' | ' | -50,206 | ' | 50,206 | ' | ' |
Stock based compensation | 81,177 | ' | 81,177 | ' | ' | ' | ' |
Ending Balance at Sep. 30, 2013 | $13,003,229 | $5,003 | $4,040,748 | ($209,736) | ($245,145) | $9,334,634 | $77,725 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income | $257,470 | $1,348,366 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Gain on business combination | ' | -1,022,074 |
Depreciation and amortization | 132,010 | 123,727 |
Amortization and accretion of securities | 88,993 | 53,932 |
Provision for loan and lease losses | 500,000 | 200,000 |
Provision for loss on real estate acquired through foreclosure | ' | 222,000 |
Loss on sale of real estate acquired through foreclosure | ' | 18,404 |
(Gains) losses on sales of securities | -116,480 | -896 |
(Gains) losses on sales of other real estate owned | 23,723 | -3,842 |
Deferred income taxes | 7,533 | -105,508 |
(Increase) decrease in accrued interest receivable | 56,624 | -43,716 |
(Increase) decrease in cash surrender value of life insurance | 70,736 | -1,927 |
(Increase) decrease in prepaid expenses and other assets | 153,730 | 46,540 |
Increase (decrease) in accrued interest payable | -459 | 514 |
Increase (decrease) in accounts payable and other liabilities | -59,059 | -269,424 |
Stock based compensation expense | 81,177 | ' |
Employee Stock Ownership Plan expense | 71,676 | 59,750 |
Net cash provided (used) by operating activities | 1,267,674 | 625,846 |
Cash flows from investing activities: | ' | ' |
Cash acquired in business combination, net of merger expenses | ' | 4,113,398 |
Proceeds from sales of available for sale securities | 1,753,845 | 189,692 |
Proceeds from maturities, payments and calls of available for sale securities | 2,986,012 | 1,841,381 |
Proceeds from maturities, payments and calls of held to maturity securities | 2,000,000 | 2,500,000 |
Purchases of available for sale securities | -1,278,086 | -2,979,375 |
Purchases of held to maturity securities | -3,756,411 | -4,499,000 |
(Purchases) maturities of certificates of deposit | -250,250 | -3,433,991 |
(Purchases) redemptions of Federal Home Loan Bank stock | 26,000 | 139,800 |
Net (increase) decrease in loans | -1,225,254 | 1,322,887 |
Proceeds from disposal of foreclosed real estate | 272,027 | 347,846 |
Proceeds from disposal of premises and equipment | ' | 342,325 |
Purchases of premises and equipment | -70,077 | -36,396 |
Net cash provided (used) by investing activities | 457,806 | -151,433 |
Cash flows from financing activities: | ' | ' |
Net increase (decrease) in deposits | -2,095,955 | -254,806 |
Net increase (decrease) in borrowings | ' | -2,000,000 |
Payments on accrued deferred compensation obligation | -8,170 | -7,780 |
Proceeds from issuance of common stock | ' | 351,573 |
Repurchase of common stock | -133,080 | -389,240 |
Net cash provided (used) by financing activities | -2,237,205 | -2,300,253 |
Net increase (decrease) in cash and cash equivalents | -511,725 | -1,825,840 |
Cash and cash equivalents, beginning balance | 4,363,186 | 6,189,026 |
Cash and cash equivalents, ending balance | 3,851,461 | 4,363,186 |
Supplemental disclosure of cash flows information: | ' | ' |
Cash paid for interest | 733,592 | 919,573 |
Cash paid for income taxes | ' | 637,084 |
Supplemental schedule of noncash investing and financing activities: | ' | ' |
Change in unrealized gain on securities available for sale - net of tax effect of $84,180 and $506, respectively | 129,204 | 7,404 |
Foreclosed assets acquired in settlement of loans | $20,000 | ' |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Oct. 13, 2011 | |
Change in unrealized gain on securities available for sale, tax | $84,180 | $506 | ' |
Loans to employee stock ownership plan | ' | ' | $63,478 |
Common stock acquired from employee stock ownership plan | ' | ' | 4,502 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Sep. 30, 2013 | ||
Significant Accounting Policies | ' | |
Note 1. | Significant Accounting Policies | |
Nature of Operations | ||
Fairmount Bancorp, Inc., a Maryland corporation (the “Company”) was incorporated on November 30, 2009, to serve as the holding company for Fairmount Bank (the “Bank”), a federally chartered savings bank. On June 2, 2010, in accordance with a Plan of Conversion adopted by its Board of Directors and approved by its members, the Bank converted from a federal mutual savings bank to Maryland state chartered commercial bank and become the wholly owned subsidiary of the Company. The conversion was accomplished through the sale and issuance of 444,038 shares of common stock at a price of $10.00 per share, through which the Company received proceeds of approximately $3,742,000, net of offering expenses of approximately $699,000. Approximately 50% of the net proceeds of the offering, or $1,900,000, were contributed by the Company to the Bank in return for 100% of the issued and outstanding shares of common stock of the Bank. In connection with the conversion, the Bank’s Board of Directors adopted an employee stock ownership plan (the “ESOP”) which subscribed for 8% of the sum of the number of shares, or 35,523 shares of common stock sold in the offering. | ||
On October 12, 2011, the Company completed the acquisition of Fullerton Federal Savings Association (“Fullerton”) in a conversion merger transaction. In connection with the acquisition and pursuant to the terms of the Agreement and Plan of Conversion Merger and the related Plan of Conversion Merger, the Company issued and sold 56,276 shares of common stock at a price of $14.10 per share, through which the Company received proceeds of approximately $452,000, net of offering expenses of $341,000. The shares were sold in a subscription offering to depositors of Fullerton and to the Company’s Employee Stock Ownership Plan and in a community offering to the Company’s Recognition and Retention Plan (the “RRP”) and to the general public. The amount of common stock offered for sale was based on an independent valuation of Fullerton. | ||
In accordance with the Office of the Commissioner of Financial Regulation of the State of Maryland regulations, upon the completion of the conversion, the Bank restricted retained earnings by establishing a liquidation account. The liquidation account will be maintained for the benefit of eligible account holders who continue to maintain their accounts at the Bank after conversion. The liquidation account will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation account. In the event of a complete liquidation of the Bank, and only in such event, each account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the adjusted qualifying account balances then held. The Bank may not pay dividends if those dividends would reduce equity capital below the required liquidation account amount. | ||
Fairmount Bank is a community-oriented commercial bank, which provides a variety of financial services to individuals and corporate customers through its home Baltimore County, Maryland, and is subject to competition from other financial institutions. The Bank’s primary deposit products are interest-bearing savings, certificates of deposit, and individual retirement accounts. The Bank’s primary lending products are single-family residential mortgage loans. The Bank is subject to the regulations of certain Federal agencies and undergoes periodic examinations by those regulatory authorities. The accounting policies of the Bank conform to accounting principles generally accepted in the United States of America and general practices within the banking industry. | ||
Principles of Consolidation | ||
The consolidated financial statements include the accounts of Fairmount Bancorp, Inc., its wholly owned subsidiary Fairmount Bank. Material intercompany accounts and transactions have been eliminated in consolidation. | ||
Estimates | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for losses on loans and leases and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for losses on loans and leases and foreclosed real estate, management obtains independent appraisals for significant properties. | ||
Cash and Cash Equivalents | ||
For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, interest-bearing deposits in other banks, certificates of deposit less than one year and federal funds sold. | ||
Securities | ||
Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. | ||
Securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and are reported at amortized cost (including amortization of premium or accretion of discount). | ||
Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Unrealized gains and losses are reported as increases or decreases in other comprehensive income. Realized gains and losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using a method which approximates the interest method over the terms of the securities. Declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary, if any, are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. | ||
Federal Home Loan Bank Stock | ||
Federal Home Loan Bank of Atlanta (the “FHLB”) stock is an equity interest in the FHLB, which does not have a readily determinable fair value for purposes of Generally Accepted Accounting Standards related to Accounting for Certain Investments in Debt and Equity Securities, because its ownership is restricted and it lacks a market. FHLB stock can be sold back only at par value of $100 per share and only to the FHLB or another member institution. As of September 30, 2013 and 2012, the Company owned shares totaling $453,700 and $479,700, respectively. | ||
The Company evaluates the FHLB stock for impairment in accordance with generally accepted accounting principles. The Company’s determination of whether this investment is impaired is based on an assessment of the ultimate recoverability of its cost rather than by recognizing temporary declines in value. The determination of whether a decline in value affects the ultimate recoverability of its cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and accordingly on the customer base of the FHLB. | ||
Loans | ||
Loans are generally carried at the amount of unpaid principal, less the allowance for loan losses and adjusted for deferred loan fees, which are amortized over the term of the loan using the interest method. Interest on loans is accrued based on the principal amounts outstanding. It is the Company’s policy to discontinue the accrual of interest when a loan is specifically determined to be impaired or when the principal or interest is delinquent for 90 days or more. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest income generally is not recognized on specific impaired loans unless the likelihood of further loss is remote. Cash collections on such loans are applied as reductions of the loan principal and no interest income is recognized on those loans until the principal balance has been collected. The carrying value of impaired loans is based on the present value of the loan’s expected future cash flows or, alternatively, the observable market price of the loan or the fair value of the collateral. The loan may be returned to accrual status if unpaid principal and interest are paid so that the loan is brought current and performing according to the contractual terms of the loan. | ||
When a loan is 15 days past due, the Company will send the borrower a late notice. The Company also contacts the borrower by phone if the delinquency is not corrected promptly after the notice has been sent. When the loan is 30 days past due, the Company will send the borrower a letter reminding the borrower of the delinquency, and attempts to contact the borrower personally to determine the reason for the delinquency in order to ensure that the borrower understands the terms of the loan and the importance of making payments on or before the due date. If necessary, subsequent delinquency notices are issued and the account will be monitored on a regular basis thereafter. By the 90th day of delinquency, the Company will send the borrower a final demand for payment and may recommend foreclosure. Loans are charged off when the Company believes that the recovery of principal is improbable. A summary report of all loans 30 days or more past due is provided to the board of directors of the Company each month. | ||
Allowance for Loan and Lease Losses | ||
The allowance for loan losses is established through a provision for loan losses. The Company maintains the allowance at a level believed, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate at each reporting date. Subsequent recoveries, if any, are credited to the allowance. | ||
The allowance for loan losses is evaluated on no less than a quarterly basis in order to identify those inherent losses and to assess the overall collection probability for the loan portfolio. The evaluation process by portfolio segment includes, among other things, an analysis of delinquency trends, non-performing loan trends, the level of charge-offs and recoveries, prior loss experience, total loans outstanding, the volume of loan originations, the type, size and geographic concentration of the loans, the value of collateral securing the loan, the borrower’s ability to repay and repayment performance, the number of loans requiring heightened management oversight, local economic conditions and industry experience. | ||
The establishment of the allowance for loan losses is significantly affected by management’s judgment and uncertainties, and there is a likelihood that different amounts would be reported under different conditions or assumptions. The Office of the Commissioner of Financial Regulation of the State of Maryland as an integral part of its examination process, periodically reviews the allowance for loan losses and may require the Company to make additional provisions for estimated loan losses based upon judgments different from those of management. | ||
The Company’s policies, consistent with regulatory guidelines, provide for the classification of loans and other assets that are considered to be of lesser quality as substandard, doubtful, or loss assets. An asset is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets include those assets characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Assets (or portions of assets) classified as loss, are those considered uncollectible and of such little value that there continuance as assets is not warranted. Assets that do not expose us to risk sufficient to warrant classification in one of the aforementioned categories, but which possess potential weaknesses that deserve close attention, are required to be designated as special mention. | ||
A loan is considered 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 determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. | ||
Loans may be periodically modified in a troubled debt restructuring (TDR) to make concessions to help a borrower remain current on the loan and to avoid foreclosure. Generally we do not forgive principal or interest on a loan or modify the interest rate on loans that are below market rates. When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans. If we determine that the value of the modified loan is less than the recorded investment in the loan, impairment is recognized through a specific allowance estimate or a charge-off to the allowance. | ||
The allowance consists of specific, general, and unallocated components. The specific component relates to loans that are classified as doubtful, substandard, or special mention. For such loans that are also classified as impaired, a specific allowance is established for that portion of the loan that is deemed uncollectible. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Determinations as to the classification of assets and the amount of loss allowances are subject to review by our principal federal regulator, the Office of the Commissioner of Financial Regulation for the State of Maryland, which can require that we establish additional loss allowances. The Company regularly reviews its asset portfolio to determine whether any assets require classification in accordance with applicable regulations. | ||
The Company maintains the allowance for loan and lease losses at a level considered adequate to provide for losses inherent in the loan portfolio. While the Company utilizes available information to recognize losses on loans, future additions to the allowances for loan and lease losses may be necessary based on changes in economic conditions, particularly in its’ market area in the state of Maryland. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan and lease losses. Such agencies may require the Company to recognize additions to the allowance for loan and lease losses based on their judgments about information available to them at the time of their examination. | ||
Actual loan losses may be significantly more than the allowance for loan and lease losses the Company has established, which could have a material negative effect on its financial statements. | ||
Premises and Equipment | ||
Land is carried at cost. Property and equipment is carried at cost less accumulated depreciation. Depreciation is computed on the straight-line method over estimated useful lives of assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred; significant renewals and betterments are capitalized. | ||
Foreclosed Assets | ||
Assets acquired through, or in lieu of, foreclosure is initially recorded at the lower of cost (principal balance of the former mortgage loan plus costs of obtaining title and possession) or fair value at the date of acquisition. Costs relating to development and improvement of property are capitalized, whereas costs relating to the holding of property are expensed. | ||
Management periodically performs valuations, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated net realizable value. | ||
Income Taxes | ||
The Company accounts for income taxes in accordance with income tax accounting guidance in ASC Topic 740. The income tax accounting guidance results in two components of income tax expense – current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to taxable income or loss. Deferred taxes are provided for the temporary differences between the tax basis and the financial basis of the Company’s assets and liabilities. Deferred tax assets and liabilities are determined based on the enacted rates that are expected to be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax expense or benefit is the result of the changes in the deferred tax assets and liabilities. | ||
Fairmount Bancorp, Inc. has entered into a tax sharing agreement with Fairmount Bank. The agreement provides that Fairmount Bancorp, Inc. will file a consolidated federal tax return, and that the tax liability shall be apportioned among the entities as would be computed if each entity had filed a separate return. According to Maryland tax law, Fairmount Bancorp, Inc. and Fairmount Bank file separate Maryland state tax returns. | ||
Common Stock Repurchase Program | ||
The Company adopted a common stock repurchase program in which shares repurchased reduce the amount of shares issued and outstanding. The repurchased shares may be reissued in connection with share-based compensations plans and for general corporate purposes. Under this plan, the Company approved the repurchase of a specific amount of shares and will extend over a period of six months beginning September 10, 2013. The common stock repurchase program began in September 2012 and was completed in February 2013. | ||
Comprehensive Income (Loss) | ||
Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of equity, such items, along with net income, are components of comprehensive income. | ||
Off-Balance Sheet Financial Instruments | ||
In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit. These loans involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized on the balance sheet. Such financial instruments are recorded in the statement of income when they are funded. | ||
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments is represented by the contractual amount of these instruments. The Company uses the same credit policies for these instruments as it does for the on-balance sheet instruments. | ||
Advertising Costs | ||
Advertising costs are expensed as incurred. For the years ended September 30, 2013 and 2012, advertising expense was $1,746 and $13,687 respectively. | ||
Concentrations of Credit Risk | ||
The Company has approximately $2,750,000 and $3,512,000, in deposits in other financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”), as of September 30, 2013 and September 30, 2012, respectively. The Company’s management considers this a normal business risk. The Company also maintains accounts with stock brokerage firms containing securities. These balances are insured up to $500,000 by the Securities Investor Protection Corporation. The Company was required to maintain a $100,000 minimum balance in a deposit account with Maryland Financial as of September 30, 2013 and 2012, in relation to a sweep account. | ||
Most of the Company’s activities are with customers in the Maryland counties of Baltimore and Harford and portions of the City of Baltimore. Notes 1, 4, and 5 discuss the types of activities and lending the Company engages in. The Bank does not have any significant concentrations in any one industry or customer. | ||
Subsequent Events | ||
The company has evaluated events and transactions subsequent to September 30, 2013 through the date these financial statements were issued. Based on definitions and requirements of Generally Accepted Accounting Principles for “Subsequent Events,” the Company has not identified any events that would require adjustments to, or disclosure in the financial statements. | ||
Reclassifications | ||
Certain prior year amounts have been reclassified to conform to the current year’s method of presentation. Such reclassifications have no effect on net income. |
Business_Combinations
Business Combinations | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
Business Combinations | ' | ||||
Note 2. | Business Combinations | ||||
On October 12, 2011, the Company completed an acquisition of Fullerton, a federally chartered mutual savings association with one office located at 7527 Belair Road in Baltimore, Maryland. Fullerton converted from the mutual to the stock form of organization and immediately issued all of its capital stock to the Company and merged with and into the Bank. In connection with the conversion merger, the Company issued and sold 56,276 shares of its common stock at a price of $14.10 per share, resulting in proceeds of approximately $452,000, net of offering expenses of approximately $341,000. | |||||
The Company recorded the following assets and liabilities as of October 12, 2011. These amounts represent the carrying value of Fullerton’s assets and liabilities adjusted to reflect the fair value at the date of the acquisition. The discounts and premiums resulting from the fair value adjustments will be accreted and amortized on a level yield basis over the anticipated lives of the underlying financial assets or liabilities. This amortization of premiums and discounts is not expected to have a material impact on the Company’s results of operations on future periods. | |||||
Assets Acquired | |||||
Assets | |||||
Cash and cash equivalents | $ | 4,224,279 | |||
Securities available for sale | 827,139 | ||||
Loans receivable | 2,414,712 | ||||
Federal Home Loan Bank stock, at cost | 15,300 | ||||
Premises and equipment | 887,503 | ||||
Other assets | 174,579 | ||||
Total assets acquired | $ | 8,543,512 | |||
Liabilities Assumed | |||||
Liabilities | |||||
Deposits | $ | 7,333,130 | |||
Other liabilities | 77,427 | ||||
Total liabilities assumed | $ | 7,410,557 | |||
The excess fair value of assets acquired over liabilities assumed, less transaction costs incurred, resulted in $1,022,074 in negative goodwill. This negative goodwill is reflected as an extraordinary item in the Company’s consolidated financial statements. | |||||
The primary purpose of the Fullerton acquisition was to expand the Bank’s deposit market share. The primary reasons for the stock offering by the Company were to: | |||||
• | provide a larger capital cushion for asset growth, which will primarily be realized through existing operations; | ||||
• | support growth and diversification of operations, products and services to transition us into a full-service community bank; | ||||
• | improve the Company’s overall capital and competitive position; | ||||
• | increase the Bank’s loans to one borrower limit to allow the Bank to make larger loans, including larger commercial real estate loans; and | ||||
• | provide additional financial resources to pursue branch expansion and possible future acquisition opportunities. | ||||
Because the individual assets and liabilities of Fullerton have been absorbed into Fairmount operations, revenue and earnings of Fullerton since the acquisition date are not available and supplemental pro forma information is not able to be provided. |
Securities
Securities | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Securities | ' | ||||||||||||||||||||||||
Note 3. | Securities | ||||||||||||||||||||||||
The amortized cost and estimated fair value of securities classified as available for sale and held to maturity at September 30, 2013 and 2012, are as follows: | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | 3,855,067 | $ | 166,298 | $ | — | $ | 4,021,365 | |||||||||||||||||
Collateralized Mortgage Obligations | 535,148 | 5,409 | 529,739 | ||||||||||||||||||||||
State and Municipal Securities | 1,273,145 | — | 32,524 | 1,240,621 | |||||||||||||||||||||
Total securities available for sale | $ | 5,663,360 | $ | 166,298 | $ | 37,933 | $ | 5,791,725 | |||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||
U.S. Government and Federal Agency Obligations | $ | 3,756,238 | $ | 4,991 | $ | 158,526 | $ | 3,602,703 | |||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | 5,629,774 | $ | 349,909 | $ | — | $ | 5,979,683 | |||||||||||||||||
Collateralized Mortgage Obligations | 1,832,052 | 538 | 8,698 | 1,823,892 | |||||||||||||||||||||
Total securities available for sale | $ | 7,461,826 | $ | 350,447 | $ | 8,698 | $ | 7,803,575 | |||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||
U.S. Government and Federal Agency Obligations | $ | 1,999,145 | $ | 11,784 | $ | — | $ | 2,010,929 | |||||||||||||||||
State and Municipal Securities | 1,637,827 | 155,142 | — | 1,792,969 | |||||||||||||||||||||
Total securities held to maturity | $ | 3,636,972 | $ | 166,926 | $ | — | $ | 3,803,898 | |||||||||||||||||
The amortized cost and estimated fair value of securities as of September 30, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Securities Available for Sale | Securities Held to Maturity | ||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Due after one year through five years | 550,169 | 549,536 | 1,740,850 | 1,724,203 | |||||||||||||||||||||
Due five years to ten years | 490,391 | 475,290 | 2,015,388 | 1,878,500 | |||||||||||||||||||||
Due after ten years | 4,622,800 | 4,766,899 | — | — | |||||||||||||||||||||
$ | 5,663,360 | $ | 5,791,725 | $ | 3,756,238 | $ | 3,602,703 | ||||||||||||||||||
During the fiscal year ended September 30, the Company sold its state and municipal securities portfolio at a gain. These state and municipal securities were transferred from the held to maturity category to the available for sale category. Although our intention had been to hold held to maturity securities until maturity, a pre-refunding and notice of call on a municipal bond was an event that triggered our reassessment of the classification of our state and municipal withholdings. Proceeds from the sale of available for sale securities totaled $1,753,845, realizing gross gains of $116,480 for the year ended September 30, 2013. Proceeds from the sale of available for sale securities totaled $189,692, realizing gross gains of $896 for the year ended September 30, 2012. | |||||||||||||||||||||||||
Securities with gross unrealized losses at September 30, 2013 and 2012 aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Collateralized Mortgage Obligations | — | — | 529,739 | 5,409 | 529,739 | 5,409 | |||||||||||||||||||
State and Municipal Securities | 1,240,621 | 32,524 | — | — | 1,240,621 | 32,524 | |||||||||||||||||||
$ | 1,240,621 | $ | 32,524 | $ | 529,739 | $ | 5,409 | $ | 1,770,360 | $ | 37,933 | ||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||
U.S. Government and Federal Agency Obligations | $ | 2,849,720 | $ | 158,526 | $ | 2,849,720 | $ | 158,526 | |||||||||||||||||
State and Municipal Securities | — | — | — | — | — | — | |||||||||||||||||||
$ | 2,849,720 | $ | 158,526 | $ | — | $ | — | $ | 2,849,720 | $ | 158,526 | ||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Collateralized Mortgage Obligations | 1,435,900 | 8,698 | — | — | 1,435,900 | 8,698 | |||||||||||||||||||
$ | 1,435,900 | $ | 8,698 | $ | — | $ | — | $ | 1,435,900 | $ | 8,698 | ||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||
U.S. Government and Federal Agency Obligations | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
State and Municipal Securities | — | — | — | — | — | — | |||||||||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
At September 30, 2013, the Company held eight investments with gross unrealized losses totaling $196,459. At September 30, 2012, the Company held two investments with gross unrealized losses totaling $8,698. The Company evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Mortgage-backed securities are invested in U.S. Government Agencies, which guarantee payments to investors regardless of the status of the underlying mortgages. Consideration is given to the length of time and the amount of an unrealized loss, the financial condition of the issuer, and the intent an ability of the Company to retain its investment in the issuer long enough to allow for an anticipated recovery in fair value. The Company monitors the financial condition of these issuers continuously and will record other-than-temporary impairment if the recovery of value is unlikely. | |||||||||||||||||||||||||
Market Risks | |||||||||||||||||||||||||
Investments of the Company are exposed to various risks, such as interest rate, market, currency and credit risks. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the value of investments, it is at least reasonably possible that changes in risks in the near term would materially affect investment assets reported in the financial statements. In addition, recent economic uncertainty and market events have led to unprecedented volatility in currency, commodity, credit and equity markets, culminating in failures of some banking and financial service firms and government intervention to solidify others. These recent events underscore the level of investment risk associated with the current economic environment, and accordingly, the level of risk in the Company’s investments. |
Loans_and_Allowance_for_Loan_a
Loans and Allowance for Loan and Lease Losses | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Loans and Allowance for Loan and Lease Losses | ' | ||||||||
Note 4. | Loans and Allowance for Loan and Lease Losses | ||||||||
The Bank makes loans to customers primarily in the counties of Baltimore and Harford and in the City of Baltimore Maryland. The principal categories of the loan portfolio at September 30, 2013 and 2012 were as follows: | |||||||||
2013 | 2012 | ||||||||
Real estate loans | |||||||||
One-to four-family owner occupied | $ | 26,363,952 | $ | 26,097,798 | |||||
One-to four-family non-owner occupied | 17,480,953 | 17,855,304 | |||||||
Home equity | 2,243,716 | 2,172,247 | |||||||
Mobile home | 1,785,854 | 2,068,672 | |||||||
Secured by other properties | 2,783,794 | 2,613,025 | |||||||
Construction and land development | 3,911,156 | 3,262,452 | |||||||
Total real estate loans | 54,569,425 | 54,069,498 | |||||||
Other loans | |||||||||
Secured commercial | 1,603,318 | 1,212,534 | |||||||
Savings | 9,159 | 10,290 | |||||||
Total other loans | 1,612,477 | 1,222,824 | |||||||
Total loans | 56,181,902 | 55,292,322 | |||||||
Unamortized premiums and loan fees | 250,880 | 319,713 | |||||||
Unearned income on loans | (323,966 | ) | (344,450 | ) | |||||
Allowance for loan and lease losses | (733,451 | ) | (617,474 | ) | |||||
Total loans, net | $ | 55,375,365 | $ | 54,650,111 | |||||
The Company had a mobile home loan origination program that began in 2005 in which it is no longer participating. At September 30, 2013 and 2012, these loan balances totaled $1,785,854 and $2,068,672, respectively. Mobile home loans were purchased from by a third-party originator and funded by the Company at settlement. The Company paid a premium/loan origination fee to the third-party originator, of which one-half was wired upon settlement of the loan and the remainder was kept by the Company in a depository account in the name of the third-party. At September 30, 2013 and 2012, the balance in the account was $0 and $42,762, respectively, and was accessed by the Company in the event of prepayment, foreclosure or deterioration of the value of the mobile home. As of September 30, 2013 and 2012, the Company has prepaid loan origination fees related to this program of $211,177 and $261,337, which are being amortized over the estimated lives of the loans. | |||||||||
In October 2004, the Company purchased a block of mortgage loans from another financial institution for $2,126,620, with an average yield of 6%. At September 30, 2013 and 2012, the loan balances were $556,213 and $657,951, respectively, and included in mortgage loans secured by one-to four family residences. In addition, the Company has unamortized loan premiums of $10,721 and $13,187, as of September 30, 2013 and 2012, respectively, being amortized over the terms of the purchased loans. | |||||||||
In May 2009, the Company purchased a block of one-to four-family mortgage loans totaling $1,109,768, with an average yield of 6.08%. There was no premium paid on the purchase. The balances of purchased loans at September 30, 2013 and 2012, are included in the breakdown of loans shown above. | |||||||||
Loans and their remaining contractual maturities at September 30, 2013, were as follows: | |||||||||
Maturities | |||||||||
One year or less | $ | 3,095,533 | |||||||
After one year to five years | 7,595,647 | ||||||||
After five years to ten years | 17,055,071 | ||||||||
After ten years to fifteen years | 7,862,923 | ||||||||
After fifteen years | 20,572,728 | ||||||||
$ | 56,181,902 | ||||||||
In the normal course of banking business, loans are made to officers and directors and related affiliates. In the opinion of management, these loans are consistent with sound banking practices, are within regulatory limitations, and do not involve more than the normal risk of collectability. | |||||||||
Loans to officers, directors and related affiliates at September 30, 2013 and 2012, were as follows: | |||||||||
2013 | 2012 | ||||||||
Balance, beginning of year | $ | 485,531 | $ | 513,789 | |||||
Additions | 214,902 | — | |||||||
Repayments | (27,113 | ) | (28,258 | ) | |||||
Balance, end of year | $ | 673,320 | $ | 485,531 | |||||
Credit_Quality_of_Financing_Re
Credit Quality of Financing Receivables and the Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Credit Quality of Financing Receivables and the Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||
Note 5. | Credit Quality of Financing Receivables and the Allowance for Loan Losses | ||||||||||||||||||||||||||||||||
Management segregates the loan portfolio into portfolio segments which is defined as the level at which the Company develops and documents a systematic method for determining its allowance for loan losses. The portfolio segments are segregated based on loan types and the underlying risk factors present in each loan type. Such risk factors are periodically reviewed by management and revised as deemed appropriate. | |||||||||||||||||||||||||||||||||
The Company’s loan portfolio is segregated into the following portfolio segments. | |||||||||||||||||||||||||||||||||
One-to Four-Family Owner Occupied Loans. This portfolio segment consists of the origination of first mortgage loans and home equity second mortgage loans secured by one-to four-family owner occupied residential properties located in our market area. The Company has experienced no foreclosures on its owner occupied loan portfolio during recent periods and believe this is due mainly to its conservative lending strategies including its non-participation in “interest only”, “Option ARM,” “sub-prime” or “Alt-A” loans. | |||||||||||||||||||||||||||||||||
One-to Four-Family Non-Owner Occupied Loans. This portfolio segment consists of the origination of first mortgage loans secured by one-to four-family non-owner occupied residential properties in its market area. A majority of these loans are sold on a participation basis to other community banks. Such lending involves additional risks, since the properties are not owner occupied, and the renters of these properties are less likely to be concerned with property upkeep. | |||||||||||||||||||||||||||||||||
Mobile Home Loans. This portfolio segment consists of mobile home loans that were purchased from a third-party originator and funded by us at settlement. Mobile home lending involves additional risks as a result of higher loan-to-value ratios usually associated with these types of loans. Mobile home loan customers have historically been more adversely impacted by weak economic conditions, consequently, mobile home loans bear a higher rate of interest, have a higher probability of default, and may involve higher delinquency rates. In addition, the values of mobile home loans decline over time and higher levels of inventories of repossessed and used mobile homes may affect the values of collateral and result in higher charge-offs and provisions for loan losses. The Company ceased originating these loans in September 2007, and no future originations of these types of loans are planned. | |||||||||||||||||||||||||||||||||
Secured by Other Properties. This portfolio segment includes loans secured by commercial real estate, including multi-family dwellings. Loans secured by commercial real estate generally have larger loan balances and more credit risk than one-to four-family mortgage loans. The increased risk is the result of several factors, including the concentration of principal in a limited number of loans and borrowers, the impact of local and general economic conditions on the borrower’s ability to repay the loan, and the increased difficulty of evaluating and monitoring these types of loans. | |||||||||||||||||||||||||||||||||
Construction and Land Development Loans. This portfolio segment includes construction loans to individuals and builders, primarily for the construction of residential properties and land loans, which are loans made with land as security. Construction and land development financing generally involves greater credit risk than long-term financing on improved, owner-occupied real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at completion of construction compared to the estimated cost (including interest) of construction and other assumptions. If the estimate of construction cost proves to be inaccurate, the Company may be required to advance additional funds beyond the amount originally committed in order to protect the value of the property. Moreover, if the estimated value of the completed project proves to be inaccurate, the borrower may hold a property with a value that is insufficient to assure full repayment. Construction loans also expose the Company to the risks that improvements will not be completed on time in accordance with specifications and projected costs and that repayment will depend on the successful operation or sale of the properties. In addition, many of these borrowers have more than one outstanding loan, so an adverse development with respect to one loan or credit relationship can expose the Company to significantly greater risk of non-payment and loss. | |||||||||||||||||||||||||||||||||
Other Loans. This portfolio segment includes commercial business loans secured by assignments of corporate assets and personal guarantees of the business owners and consumer loans consisting solely of deposit account loans. Commercial business loans generally have higher interest rates and shorter terms than one- to four-family residential loans, but they also may involve higher average balances, increased difficulty of loan monitoring and a higher risk of default since their repayment generally depends on the successful operation of the borrower’s business. | |||||||||||||||||||||||||||||||||
Loans are generally carried at the amount of unpaid principal, less the allowance for loan losses and adjusted for deferred loan fees, which are amortized over the term of the loan using the interest method. Interest on loans is accrued based on the principal amounts outstanding. It is the Company’s policy to discontinue the accrual of interest when a loan is specifically determined to be impaired or when the principal or interest is delinquent for 90 days or more. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest income generally is not recognized on specific impaired loans unless the likelihood of further loss is remote. Cash collections on such loans are applied as reductions of the loan principal and no interest income is recognized on those loans until the principal balance has been collected. The carrying value of impaired loans is based on the present value of the loan’s expected future cash flows or, alternatively, the observable market price of the loan or the fair value of the collateral. | |||||||||||||||||||||||||||||||||
As a financial services provider, the Company is routinely party to various financial instruments with off-balance-sheet risks, such as commitments to extend credit and unused lines of credit. While these contractual obligations represent future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process accorded to loans made. | |||||||||||||||||||||||||||||||||
Management further disaggregates the loan portfolio segments into classes of loans, which are based on the initial measurement of the loan, risk characteristics of the loan and the method for monitoring and assessing the credit risk of the loan. | |||||||||||||||||||||||||||||||||
The allowance for loan losses is established through a provision for loan losses. The Company maintains the allowance at a level believed, to the best of management’s knowledge, to cover all known and inherent losses in the loan portfolio that are both probable and reasonable to estimate at each reporting date. | |||||||||||||||||||||||||||||||||
Management reviews the allowance for loan losses on no less than a quarterly basis in order to identify those inherent losses and to assess the overall collection probability for the loan portfolio. The evaluation process by portfolio segment includes, among other things, an analysis of delinquency trends, non-performing loan trends, the level of charge-offs and recoveries, prior loss experience, total loans outstanding, the volume of loan originations, the type, size and geographic concentration of the loans, the value of collateral securing the loan, the borrower’s ability to repay and repayment performance, the number of loans requiring heightened management oversight, local economic conditions and industry experience. | |||||||||||||||||||||||||||||||||
The establishment of the allowance for loan losses is significantly affected by management’s judgment and uncertainties, and there is a likelihood that different amounts would be reported under different conditions or assumptions. The Office of the Commissioner of Financial Regulation for the State of Maryland, as an integral part of its examination process, periodically reviews the allowance for loan losses and may require the Company to make additional provisions for estimated loan losses based upon judgments different from those of management. | |||||||||||||||||||||||||||||||||
The allowance generally consists of specific and general components. The specific component relates to loans that are classified as either doubtful, substandard or special mention. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. | |||||||||||||||||||||||||||||||||
The Company will continue to monitor and modify its allowance for loan losses as conditions dictate. No assurances can be given that the level of allowance for loan losses will cover all of the inherent losses on the loans or that future adjustments to the allowance for loan losses will not be necessary if economic and other conditions differ substantially from the economic and other conditions used by management to determine the current level of the allowance for loan losses. | |||||||||||||||||||||||||||||||||
The following tables set forth as of the end of each reporting period, the balance of the allowance for loan losses by portfolio segment, disaggregated by impairment methodology, which is then further segregated by amounts evaluated for impairment collectively and individually. The allowance for loan losses allocated to each portfolio segment is not necessarily indicative of future losses in any particular portfolio segment and does not restrict the use of the allowance to absorb losses in other portfolio segments. | |||||||||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||||||
One-to | One-to | Mobile | Secured by | Construction | Other | Unallocated | Total | ||||||||||||||||||||||||||
Four-Family | Four-Family | Home | Other | and Land | Loans | ||||||||||||||||||||||||||||
Owner | Non-Owner | Properties | Development | ||||||||||||||||||||||||||||||
Occupied | Occupied | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 85,217 | $ | 273,683 | $ | 95,613 | $ | 30,442 | $ | 80,327 | $ | 3,057 | $ | 49,135 | $ | 617,474 | |||||||||||||||||
Charge-offs | — | (363,842 | ) | (23,921 | ) | — | — | — | — | (387,763 | ) | ||||||||||||||||||||||
Recoveries | — | 3,740 | — | — | — | — | — | 3,740 | |||||||||||||||||||||||||
Provision | (4,654 | ) | 562,003 | 9,251 | (8,077 | ) | (49,522 | ) | 974 | (9,975 | ) | 500,000 | |||||||||||||||||||||
Ending Balance | $ | 80,563 | $ | 475,584 | $ | 80,943 | $ | 22,365 | $ | 30,805 | $ | 4,031 | $ | 39,160 | $ | 733,451 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 201,267 | $ | 488 | $ | — | $ | — | $ | — | $ | — | $ | 201,755 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 80,563 | $ | 274,317 | $ | 80,455 | $ | 22,365 | $ | 30,805 | $ | 4,031 | $ | 39,160 | $ | 531,696 | |||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Financing receivables: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 28,607,668 | $ | 17,480,953 | $ | 1,785,854 | $ | 2,783,794 | $ | 3,911,156 | $ | 1,612,477 | $ | 56,181,902 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 436,317 | $ | 1,635,383 | $ | 105,940 | $ | 213,099 | $ | 370,411 | $ | — | $ | 2,761,150 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 27,780,213 | $ | 15,845,570 | $ | 1,679,914 | $ | 2,570,695 | $ | 3,540,745 | $ | 1,612,477 | $ | 53,029,614 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 391,138 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 391,138 | |||||||||||||||||||
As of September 30, 2012 | |||||||||||||||||||||||||||||||||
One-to | One-to | Mobile | Secured by | Construction | Other | Unallocated | Total | ||||||||||||||||||||||||||
Four-Family | Four-Family | Home | Other | and Land | Loans | ||||||||||||||||||||||||||||
Owner | Non-Owner | Properties | Development | ||||||||||||||||||||||||||||||
Occupied | Occupied | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 64,547 | $ | 382,023 | $ | 52,719 | $ | 25,702 | $ | 91,135 | $ | 3,907 | $ | 45,256 | $ | 665,289 | |||||||||||||||||
Charge-offs | (72,815 | ) | (175,000 | ) | — | — | — | — | — | (247,815 | ) | ||||||||||||||||||||||
Recoveries | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Provision | 93,485 | 66,660 | 42,894 | 4,740 | (10,808 | ) | (850 | ) | 3,879 | 200,000 | |||||||||||||||||||||||
Ending Balance | $ | 85,217 | $ | 273,683 | $ | 95,613 | $ | 30,442 | $ | 80,327 | $ | 3,057 | $ | 49,135 | $ | 617,474 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 30,901 | $ | 36,517 | $ | — | $ | — | $ | — | $ | — | $ | 67,418 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 85,217 | $ | 242,782 | $ | 59,096 | $ | 30,442 | $ | 80,327 | $ | 3,057 | $ | 49,135 | $ | 550,056 | |||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Financing receivables: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 28,270,045 | $ | 17,855,304 | $ | 2,068,672 | $ | 2,613,025 | $ | 3,262,452 | $ | 1,222,824 | $ | 55,292,322 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 437,872 | $ | 1,577,271 | $ | 152,256 | $ | 216,000 | $ | — | $ | — | $ | 2,383,399 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 27,434,223 | $ | 16,278,033 | $ | 1,916,416 | $ | 2,397,025 | $ | 3,262,452 | $ | 1,222,824 | $ | 52,510,973 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 397,950 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 397,950 | |||||||||||||||||||
The Company’s policies, consistent with regulatory guidelines, provide for the classification of loans and other assets that are considered to be of lesser quality as substandard, doubtful, or loss assets. An asset is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets include those assets characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Assets (or portions of assets) classified as loss are those considered uncollectible and of such little value that there continuance as assets is not warranted. Assets that do not expose us to risk sufficient to warrant classification in one of the aforementioned categories, but which possess potential weaknesses that deserve close attention, are required to be designated as special mention. | |||||||||||||||||||||||||||||||||
When assets are classified as either substandard or doubtful, the Company allocates a portion of the related general loss allowances to such assets as the Company deems prudent. Determinations as to the classification of assets and the amount of loss allowances are subject to review by our principal federal regulator, the Office of the Commissioner of Financial Regulation of the State of Maryland, which can require that we establish additional loss allowances. The Company regularly reviews its asset portfolio to determine whether any assets require classification in accordance with applicable regulations. | |||||||||||||||||||||||||||||||||
The following tables are a summary of the loan portfolio quality indicators by loan class recorded investment as of September 30, 2013 and September 30, 2012: | |||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
One-to | One-to | Home | Mobile | Secured | Construction | ||||||||||||||||||||||||||||
Four-Family | Four-Family | Equity | Home | by | and Land | ||||||||||||||||||||||||||||
Owner | Non-Owner | Other | Development | ||||||||||||||||||||||||||||||
Occupied | Occupied | Properties | |||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 25,536,497 | $ | 15,291,094 | $ | 2,243,716 | $ | 1,655,013 | $ | 2,570,695 | $ | 3,540,745 | |||||||||||||||||||||
Special Mention | — | — | — | — | — | — | |||||||||||||||||||||||||||
Substandard | 827,455 | 1,845,206 | — | 130,841 | 213,099 | 370,411 | |||||||||||||||||||||||||||
Doubtful | — | 344,653 | — | — | — | — | |||||||||||||||||||||||||||
$ | 26,363,952 | $ | 17,480,953 | $ | 2,243,716 | $ | 1,785,854 | $ | 2,783,794 | $ | 3,911,156 | ||||||||||||||||||||||
Secured | Savings | Totals | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 1,603,318 | $ | 9,159 | $ | 52,450,238 | |||||||||||||||||||||||||||
Special Mention | — | — | — | ||||||||||||||||||||||||||||||
Substandard | — | — | 3,387,011 | ||||||||||||||||||||||||||||||
Doubtful | — | — | 344,653 | ||||||||||||||||||||||||||||||
$ | 1,603,318 | $ | 9,159 | $ | 56,181,902 | ||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||
One-to | One-to | Home | Mobile | Secured | Construction | ||||||||||||||||||||||||||||
Four-Family | Four-Family | Equity | Home | by | and Land | ||||||||||||||||||||||||||||
Owner | Non-Owner | Other | Development | ||||||||||||||||||||||||||||||
Occupied | Occupied | Properties | |||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 25,261,976 | $ | 15,904,215 | $ | 2,172,247 | $ | 1,814,197 | $ | 2,397,025 | $ | 2,820,472 | |||||||||||||||||||||
Special Mention | — | — | — | 74,743 | — | — | |||||||||||||||||||||||||||
Substandard | 835,822 | 1,951,089 | — | 179,732 | — | 441,980 | |||||||||||||||||||||||||||
Doubtful | — | — | — | — | 216,000 | — | |||||||||||||||||||||||||||
$ | 26,097,798 | $ | 17,855,304 | $ | 2,172,247 | $ | 2,068,672 | $ | 2,613,025 | $ | 3,262,452 | ||||||||||||||||||||||
Secured | Savings | Totals | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 1,212,534 | $ | 10,290 | $ | 51,592,956 | |||||||||||||||||||||||||||
Special Mention | — | — | 74,743 | ||||||||||||||||||||||||||||||
Substandard | — | — | 3,408,623 | ||||||||||||||||||||||||||||||
Doubtful | — | — | 216,000 | ||||||||||||||||||||||||||||||
$ | 1,212,534 | $ | 10,290 | $ | 55,292,322 | ||||||||||||||||||||||||||||
When a loan is 15 days past due, the Company sends the borrower a late notice. The Company also contacts the borrower by phone if the delinquency is not corrected promptly after the notice has been sent. When the loan is 30 days past due, the Company mails the borrower a letter reminding the borrower of the delinquency, and attempt to contact the borrower personally to determine the reason for the delinquency in order to ensure that the borrower understands the terms of the loan and the importance of making payments on or before the due date. If necessary, subsequent delinquency notices are issued and the account will be monitored on a regular basis thereafter. By the 90th day of delinquency, the Company will send the borrower a final demand for payment and may recommend foreclosure. Loans are charged off when the Company believes that the recovery of principal is improbable. A summary report of all loans 30 days or more past due is provided to the board of directors of the Company each month. | |||||||||||||||||||||||||||||||||
Loans are automatically placed on non-accrual status when payment of principal or interest is more than 90 days delinquent. Loans are also placed on non-accrual status if collection of principal or interest in full is in doubt or if the loan has been restructured. When loans are placed on non-accrual status, unpaid accrued interest is fully reversed, and further income is recognized only to the extent received. The loan may be returned to accrual status if unpaid principal and interest are repaid so that the loan is less than 90 days delinquent. | |||||||||||||||||||||||||||||||||
The following tables set forth certain information with respect to our loan portfolio delinquencies by loan class and amount as of September 30, 2013, and September 30, 2012: | |||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | Greater | Total Past | Current | Total | Recorded | |||||||||||||||||||||||||||
Days Past | Days Past | Than 90 | Due | Financing | Investment > | ||||||||||||||||||||||||||||
Due | Due | Days | Receivables | 90 Days and | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | — | $ | — | $ | 690,975 | $ | 690,975 | $ | 25,672,977 | $ | 26,363,952 | $ | — | |||||||||||||||||||
One-to four-family non-owner occupied | — | — | 1,635,383 | 1,635,383 | 15,845,570 | 17,480,953 | — | ||||||||||||||||||||||||||
Home equity | — | — | — | — | 2,243,716 | 2,243,716 | — | ||||||||||||||||||||||||||
Mobile home | 73,774 | — | — | 73,774 | 1,712,080 | 1,785,854 | — | ||||||||||||||||||||||||||
Secured by other properties | — | — | — | — | 2,783,794 | 2,783,794 | — | ||||||||||||||||||||||||||
Construction and land development | — | — | — | — | 3,911,156 | 3,911,156 | — | ||||||||||||||||||||||||||
Total real estate loans | 73,774 | — | 2,326,358 | 2,400,132 | 52,169,293 | 54,569,425 | — | ||||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||
Secured commercial | — | — | — | — | 1,603,318 | 1,603,318 | — | ||||||||||||||||||||||||||
Savings accounts | — | — | — | — | 9,159 | 9,159 | — | ||||||||||||||||||||||||||
Total other loans | — | — | — | — | 1,612,477 | 1,612,477 | — | ||||||||||||||||||||||||||
Total loans | $ | 73,774 | $ | — | $ | 2,326,358 | $ | 2,400,132 | $ | 53,781,770 | $ | 56,181,902 | $ | — | |||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | Greater | Total Past | Current | Total | Recorded | |||||||||||||||||||||||||||
Days Past | Days Past | Than 90 | Due | Financing | Investment > | ||||||||||||||||||||||||||||
Due | Due | Days | Receivables | 90 Days and | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | — | $ | — | $ | 835,822 | $ | 835,822 | $ | 25,261,976 | $ | 26,097,798 | $ | — | |||||||||||||||||||
One-to four-family non-owner occupied | 228,229 | — | 721,392 | 949,621 | 16,905,683 | 17,855,304 | — | ||||||||||||||||||||||||||
Home equity | — | — | — | — | 2,172,247 | 2,172,247 | — | ||||||||||||||||||||||||||
Mobile home | 46,927 | — | 103,541 | 150,468 | 1,918,204 | 2,068,672 | — | ||||||||||||||||||||||||||
Secured by other properties | — | — | 216,000 | 216,000 | 2,397,025 | 2,613,025 | — | ||||||||||||||||||||||||||
Construction and land development | — | — | — | — | 3,262,452 | 3,262,452 | — | ||||||||||||||||||||||||||
Total real estate loans | 275,156 | — | 1,876,755 | 2,151,911 | 51,917,587 | 54,069,498 | — | ||||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||
Secured commercial | — | — | — | — | 1,212,534 | 1,212,534 | — | ||||||||||||||||||||||||||
Savings accounts | — | — | — | — | 10,290 | 10,290 | — | ||||||||||||||||||||||||||
Total other loans | — | — | — | — | 1,222,824 | 1,222,824 | — | ||||||||||||||||||||||||||
Total loans | $ | 275,156 | $ | — | $ | 1,876,755 | $ | 2,151,911 | $ | 53,140,411 | $ | 55,292,322 | $ | — | |||||||||||||||||||
The following table is a summary of the non-accrual loans by loan class as of: | |||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | 690,975 | $ | 835,822 | |||||||||||||||||||||||||||||
One-to four-family non-owner occupied | 1,635,383 | 721,392 | |||||||||||||||||||||||||||||||
Home equity | — | — | |||||||||||||||||||||||||||||||
Mobile home | 59,554 | 103,541 | |||||||||||||||||||||||||||||||
Secured by other properties | — | 216,000 | |||||||||||||||||||||||||||||||
Construction and land development | — | — | |||||||||||||||||||||||||||||||
Total real estate loans | 2,385,912 | 1,876,755 | |||||||||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||
Secured commercial | — | — | |||||||||||||||||||||||||||||||
Savings accounts | — | — | |||||||||||||||||||||||||||||||
Total other loans | — | — | |||||||||||||||||||||||||||||||
Total loans | $ | 2,385,912 | $ | 1,876,755 | |||||||||||||||||||||||||||||
At September 30, 2013 and September 30, 2012, there were no loans 90 days past due and still accruing interest. At September 30, 2013, the Company had twenty-nine loans on non-accrual status with foregone interest in the amount of $251,798. At September 30, 2012, the Company had twenty-three loans on non-accrual status with foregone interest in the amount of $160,495. | |||||||||||||||||||||||||||||||||
The Company accounts for impaired loans under generally accepted accounting principles. An impaired loan generally is one for which it is probable, based on current information, that the lender will not collect all the amounts due under the contractual terms of the loan. Loans are individually evaluated for impairment. When the Company classifies a problem asset as impaired, it provides a specific reserve for that portion of the asset that is deemed uncollectible based on the present value of expected future cash flows discounted at the loan’s original effective interest rate, or based on the loan’s observable market price or fair value of the collateral if the loan is collateral dependent. | |||||||||||||||||||||||||||||||||
The following tables are a summary of impaired loans by class as of September 30, 2013 and September 30, 2012: | |||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | 904,113 | $ | 827,455 | $ | — | $ | 904,113 | $ | 31,184 | |||||||||||||||||||||||
One-to four-family non-owner occupied | 609,362 | 507,227 | — | 609,362 | 13,288 | ||||||||||||||||||||||||||||
Secured by other properties | 226,434 | 213,099 | — | 226,434 | 684 | ||||||||||||||||||||||||||||
Construction and land development | 370,411 | 370,411 | — | 370,411 | 20,043 | ||||||||||||||||||||||||||||
Mobile homes | 59,627 | 59,554 | — | 59,627 | 4,078 | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
One-to four-family non-owner occupied | $ | 1,217,512 | $ | 1,128,156 | $ | 201,267 | $ | 1,217,512 | $ | 21,255 | |||||||||||||||||||||||
Mobile home | 46,508 | 46,386 | 488 | 46,508 | 3,097 | ||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | 904,113 | $ | 827,455 | $ | — | $ | 904,113 | $ | 31,184 | |||||||||||||||||||||||
One-to four-family non-owner occupied | 1,867,709 | 1,635,383 | 201,267 | 1,867,709 | 34,543 | ||||||||||||||||||||||||||||
Secured by other properties | 226,434 | 213,099 | — | 226,434 | 684 | ||||||||||||||||||||||||||||
Construction and land development | 370,411 | 370,411 | — | 370,411 | 20,043 | ||||||||||||||||||||||||||||
Mobile home | 106,135 | 105,940 | 488 | 106,135 | 7,175 | ||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | 877,758 | $ | 835,822 | $ | — | $ | 877,758 | $ | 25,376 | |||||||||||||||||||||||
One-to four-family non-owner occupied | 896,218 | 721,392 | — | 896,218 | 15,792 | ||||||||||||||||||||||||||||
Secured by other properties | 227,819 | 216,000 | — | 225,834 | — | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
One-to four-family non-owner occupied | $ | 856,752 | $ | 855,879 | $ | 30,901 | $ | 856,752 | $ | 47,446 | |||||||||||||||||||||||
Mobile home | 165,267 | 152,256 | 36,517 | 165,267 | 9,561 | ||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | 877,758 | $ | 835,822 | $ | — | $ | 877,758 | $ | 25,376 | |||||||||||||||||||||||
One-to four-family non-owner occupied | 1,752,970 | 1,577,271 | 30,901 | 1,752,970 | 63,238 | ||||||||||||||||||||||||||||
Secured by other properties | 227,819 | 216,000 | — | 227,819 | — | ||||||||||||||||||||||||||||
Mobile home | 165,267 | 152,256 | 36,517 | 165,267 | 9,561 | ||||||||||||||||||||||||||||
Loans may be periodically modified in a troubled debt restructuring (a “TDR”) to make concessions to help a borrower remain current on the loan and/or to avoid foreclosure. Generally we do not forgive principal or interest on a loan or modify the interest rate on loans that are below market rates. When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans. If we determine that the value of the modified loan is less than the recorded investment in the loan, impairment is recognized through a specific allowance estimate or a charge-off to the allowance. At September 30, 2013, we had ten loans that were restructured. One loan was secured by a one-to four-family owner occupied property in the amount of $136,481. Five loans to the same borrower in the amount of $783,503 were secured by one-to four-family non-owner occupied properties. One loan was secured by other properties in the amount of $213,099, one loan was secured by construction and land development in the amount of $370,411 and two loans were secured by a mobile homes in the amount of $105,940. At September 30, 2012, we had eight loans that were restructured. One loan was secured by a one-to four-family owner occupied property in the amount of $138,035. Five loans to the same borrower in the amount of $855,879 were secured by one-to four-family non-owner occupied properties. One loan was secured by other properties in the amount of $216,000 and one loan was secured by a mobile home loan in the amount of $51,313. The Company has no commitments to loan additional funds to borrowers whose loans have been modified. | |||||||||||||||||||||||||||||||||
The following table is a summary of impaired loans that were modified due to a troubled debt restructuring by class as of September 30, 2013 and September 30, 2012: | |||||||||||||||||||||||||||||||||
Modifications for the year ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||
contracts | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||||
Investments | Investments | ||||||||||||||||||||||||||||||||
Troubled Debt Restructuring | |||||||||||||||||||||||||||||||||
Construction and land development | 1 | $ | 370,411 | $ | 370,411 | ||||||||||||||||||||||||||||
Mobile home | 1 | 59,627 | 59,627 | ||||||||||||||||||||||||||||||
Recorded Investment | |||||||||||||||||||||||||||||||||
Troubled Debt Restructuring that subsequently defaulted | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | 1 | $ | 67,000 | ||||||||||||||||||||||||||||||
Modifications for the year ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||
contracts | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||||
Investments | Investments | ||||||||||||||||||||||||||||||||
Troubled Debt Restructuring | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | 1 | $ | 151,932 | $ | 151,932 | ||||||||||||||||||||||||||||
One-to four-family non-owner occupied | 5 | 856,752 | 825,851 | ||||||||||||||||||||||||||||||
Secured by other properties | 1 | 227,819 | 227,819 | ||||||||||||||||||||||||||||||
Mobile home | 1 | 48,715 | 46,198 | ||||||||||||||||||||||||||||||
Recorded Investment | |||||||||||||||||||||||||||||||||
Troubled Debt Restructuring that subsequently defaulted | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | 1 | $ | 151,932 |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Premises and Equipment | ' | ||||||||||||
Note 6. | Premises and Equipment | ||||||||||||
Premises and equipment at September 30, 2013 and 2012, were as follows: | |||||||||||||
2013 | 2012 | Depreciable | |||||||||||
Lives | |||||||||||||
Cost | |||||||||||||
Land | $ | 1,142,089 | $ | 1,142,089 | - | ||||||||
Buildings and land improvements | 2,031,589 | 2,031,589 | 10-50 yrs | ||||||||||
Furniture, fixtures, and equipment | 518,026 | 467,949 | 3-7 yrs | ||||||||||
Total | 3,691,704 | 3,641,627 | |||||||||||
Less: accumulated depreciation | (536,642 | ) | (404,632 | ) | |||||||||
$ | 3,155,062 | $ | 3,236,995 | ||||||||||
Depreciation expense totaled $132,010 and $123,727 for the years ended September 30, 2013 and 2012, respectively. |
Foreclosed_Real_Estate
Foreclosed Real Estate | 12 Months Ended | |
Sep. 30, 2013 | ||
Foreclosed Real Estate | ' | |
Note 7. | Foreclosed Assets | |
At September 30, 2013 and 2012, the Company had $20,000 and $295,750 in foreclosed assets, respectively. A charge to the Allowance for Loan Losses during the year ended September 30, 2013 and 2012 of $16,781 and $0, respectively was taken at the time the foreclosed property was placed in foreclosed assets. The Company disposed of foreclosed assets in the fiscal year 2013 in the amount of $295,750 and recorded a loss of $23,723. The Company disposed of foreclosed assets in fiscal year 2012 in the amount of $347,846 and recorded a loss of $18,404 on the transaction. |
Deposits
Deposits | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
Deposits | ' | ||||
Note 8. | Deposits | ||||
The aggregate amount of deposits with balances of $100,000 or more totaled $15,445,563 and $18,608,689 at September 30, 2013 and 2012, respectively. | |||||
Deposit accounts are federally insured up to $250,000 per depositor. On January 1, 2014, the FDIC insurance limit will return to $100,000 per depositor for all deposit categories except for IRA and certain retirement accounts, which will remain at $250,000 per depositor. | |||||
Certificates of deposit and their remaining maturities at September 30, 2013, are as follows: | |||||
2014 | $ | 17,425,755 | |||
2015 | 8,782,333 | ||||
2016 | 2,751,064 | ||||
2017 | 2,176,707 | ||||
2018 | 3,306,510 | ||||
$ | 34,442,369 | ||||
Deposit balances of employees, officers, directors and their affiliated interests totaled $202,179 and $226,814 at September 30, 2013 and 2012, respectively. The Company had no brokered deposits at September 30, 2013 and 2012. |
Borrowings
Borrowings | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Borrowings | ' | ||||||||||||||||||
Note 9. | Borrowings | ||||||||||||||||||
The Company has advances outstanding from the Federal Home Loan Bank (“FHLB”). A schedule of the borrowings is as follows: | |||||||||||||||||||
Advance | Rate | Maturity | September 30, | September 30, | |||||||||||||||
Amount | Date | 2013 | 2012 | ||||||||||||||||
$ | 1,000,000 | 4.235 | % | 7/31/17 | $ | 1,000,000 | $ | 1,000,000 | |||||||||||
1,000,000 | 4.01 | % | 8/21/17 | 1,000,000 | 1,000,000 | ||||||||||||||
1,500,000 | 3.227 | % | 11/24/17 | 1,500,000 | 1,500,000 | ||||||||||||||
1,500,000 | 3.4 | % | 11/27/17 | 1,500,000 | 1,500,000 | ||||||||||||||
1,000,000 | 2.599 | % | 10/2/18 | 1,000,000 | 1,000,000 | ||||||||||||||
1,000,000 | 2.6 | % | 7/2/18 | 1,000,000 | 1,000,000 | ||||||||||||||
1,000,000 | 3.05 | % | 7/3/18 | 1,000,000 | 1,000,000 | ||||||||||||||
$ | 8,000,000 | $ | 8,000,000 | ||||||||||||||||
Interest payments are due quarterly. After a loan specific holding period, the borrowings are callable by the FHLB, at which time the Company is able to convert from a fixed rate to a variable rate based on LIBOR. The Company has credit availability of 30% of the Bank’s total assets. Pursuant to collateral agreements with the FHLB, the advances are secured by the Company’s FHLB stock and qualifying residential first mortgage loans, totaling approximately $36,900,000 as of September 30, 2013. | |||||||||||||||||||
Additionally, the Company has credit availability of $1,500,000 with a correspondent bank for short term liquidity needs, if necessary. There were no borrowings outstanding at September 30, 2013 and 2012, under these facilities. | |||||||||||||||||||
At September 30, 2013, the scheduled maturities of the FHLB advances are as follows: | |||||||||||||||||||
2014 | $ | — | |||||||||||||||||
2015 | — | ||||||||||||||||||
2016 | — | ||||||||||||||||||
2017 | 2,000,000 | ||||||||||||||||||
2018 | 5,000,000 | ||||||||||||||||||
Thereafter | 1,000,000 | ||||||||||||||||||
$ | 8,000,000 | ||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Income Taxes | ' | ||||||||
Note 10. | Income Taxes | ||||||||
The income tax provision reflected in the statements of income consisted of the following components for the years ended September 30, 2013 and 2012: | |||||||||
2013 | 2012 | ||||||||
Income tax expense | |||||||||
Current tax expense | |||||||||
Federal | $ | 139,077 | $ | 166,554 | |||||
State | 34,118 | 53,381 | |||||||
Total current | 173,195 | 219,935 | |||||||
Deferred tax expense (benefit) | |||||||||
Federal | 8,834 | (105,141 | ) | ||||||
State | (1,302 | ) | (367 | ) | |||||
Total deferred | 7,532 | (105,508 | ) | ||||||
Total income tax expense | $ | 180,727 | $ | 114,427 | |||||
A reconciliation of tax computed at the Federal statutory tax rate of 34% to the actual tax expense for the years ended September 30, 2013 and 2012, is as follows: | |||||||||
2013 | 2012 | ||||||||
Tax at Federal statutory rate | $ | 149,987 | $ | 498,725 | |||||
Tax effect of: | |||||||||
Nontaxable gain on business combination | — | (347,505 | ) | ||||||
Tax exempt income | (3,712 | ) | (16,605 | ) | |||||
Graduated rates | 13,546 | (55,181 | ) | ||||||
State income taxes, net of federal benefit | 20,906 | 34,993 | |||||||
Income tax expense | $ | 180,727 | $ | 114,427 | |||||
The components of the net deferred tax asset (liability) at September 30, 2013 and 2012 were as follows: | |||||||||
2013 | 2012 | ||||||||
Deferred income tax assets: | |||||||||
Nonaccrual interest | $ | 99,334 | $ | 63,315 | |||||
Loans yield adjustment | 11,291 | 17,827 | |||||||
Certificate of deposit yield adjustment | — | 8,750 | |||||||
Core deposit intangible | 4,494 | — | |||||||
ESOP Plan funding | — | 7,053 | |||||||
Stock Option Plan | 14,866 | — | |||||||
Deferred compensation | — | 3,223 | |||||||
Allowance for loan losses | 289,346 | 243,593 | |||||||
Foreclosed real estate provision | — | 87,579 | |||||||
419,331 | 431,340 | ||||||||
Deferred income tax liabilities: | |||||||||
Net unrealized gain on securities | 50,639 | 134,819 | |||||||
Core deposit intangible | — | 2,667 | |||||||
Certificate of deposit yield adjustment | 6,668 | — | |||||||
Accumulated depreciation | 74,278 | 82,755 | |||||||
131,585 | 220,241 | ||||||||
Net deferred income tax asset (liability) | $ | 287,746 | $ | 211,099 | |||||
The Company maintains $731,536 of its retained earnings as a reserve for loan losses for tax purposes. This amount has not been charged against earnings and is a restriction on retained earnings. If this balance in the reserve account is used for anything but losses on mortgage loans or payment of special assessment taxes, it will be subject to federal income taxes. | |||||||||
As of September 30, 2013, the Company had remaining net operating loss carryforwards from the Fullerton acquisition of approximately $335,000, which expire in 2031. These net operating loss carryforwards may be used to offset future income taxes payable, however the Bank may be subject to alternative minimum tax. Their realization is dependent on future taxable income and may be subject to limits under IRC Section 382. | |||||||||
The Company follows the FASB Accounting Standards Codification, which provides guidance 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 tax positions 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. As of September 30, 2013, the Company had no uncertain tax positions that qualify for either recognition or disclosure in the Company’s financial statements. The Company’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the financial statements. No interest and penalties were recorded during the period ended September 30, 2013. Generally, the tax years before 2007 are no longer subject to examination by federal, state or local taxing authorities. |
Defined_Contribution_Benefit_P
Defined Contribution Benefit Plan | 12 Months Ended | |
Sep. 30, 2013 | ||
Defined Contribution Benefit Plan | ' | |
Note 11. | Defined Contribution Benefit Plan | |
In July 2009, the Company established a 401(k) plan covering all full-time employees who have attained an age of 21 and have completed 12 months of service. The plan provides for the Company to make contributions which will match employee deferrals on a one-to-one basis up to 4% of an employee’s eligible compensation. Participants are 100% vested in their deferrals and employer matching contributions. Additional contributions can be made at the discretion of the Board of Directors based on the Company’s performance. Contributions for the years ended September 30, 2013 and 2012 were $25,510 and $25,481, respectively. |
Employee_Stock_Ownership_Plan
Employee Stock Ownership Plan | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Employee Stock Ownership Plan | ' | ||||||||
Note 12. | Employee Stock Ownership Plan | ||||||||
In connection with the conversion to stock form in June 2010, the Company established an Employee Stock Ownership Plan (“ESOP”) for the exclusive benefit of eligible employees. The ESOP borrowed funds from the Company in the amount of $355,230, which was sufficient to purchase 35,523 shares or 8% of the common stock issued and sold in the initial public offering in June 2010. The shares were acquired at a price of $10.00 per share. The ESOP borrowed additional funds from the Company in the amount of $63,478, which was sufficient to purchase 4,502 shares or 8% of the common stock issued and sold in the conversion merger of Fullerton in October 2011. The shares were acquired at a price of $14.10 per share. | |||||||||
The loans are secured by the shares purchased with the loan proceeds and will be repaid by the ESOP over the 10-year terms of the loans with funds from Fairmount Bank’s contributions to the ESOP and dividends paid on the stock, if any. The interest rate on the ESOP loans is an adjustable rate equal to the lowest prime rate, as published in The Wall Street Journal. The interest rate will adjust annually and will be the prime rate on the last business day of the fiscal year. The interest rate on the loan as of September 30, 2013, is 3.25%. | |||||||||
Shares purchased with the loan proceeds are held in a suspense account for allocation among participants as the loan is repaid. Contributions to the ESOP and shares released from the suspense account are allocated among participants in proportion to their compensation, relative to total compensation of all active participants. Participants will vest their accrued benefits under the employee stock ownership plan at the rate of 20% per year. Vesting is accelerated upon retirement, death or disability of the participant, or a change in control of the Bank. Forfeitures will be reallocated to remaining plan participants. Benefits may be payable upon retirement, death, disability, separation of service, or termination of the ESOP. | |||||||||
The debt of the ESOP, in accordance with generally accepted accounting principles, is eliminated in consolidation and the shares pledged as collateral are reported as unearned ESOP shares in the consolidated balance sheet. Contributions to the ESOP shall be sufficient to pay principal and interest currently due under the loan agreement. As shares are committed to be released from collateral, the Company reports compensation expense equal to the average market price of the shares for the respective period, and the shares become outstanding for earnings per share computations. Dividends on allocated ESOP shares are recorded as a reduction of debt and accrued interest. ESOP compensation expense for the years ended September 30, 2013 and 2012 was $71,676 and $59,750, respectively. | |||||||||
A summary of ESOP shares is as follows: | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Shares committed for release | 20,527 | 16,525 | |||||||
Unearned shares | 19,498 | 23,500 | |||||||
Total ESOP shares | 40,025 | 40,025 | |||||||
Fair value of unearned shares | $ | 389,960 | $ | 399,500 | |||||
Recognition_and_Retention_Plan
Recognition and Retention Plan | 12 Months Ended | |
Sep. 30, 2013 | ||
Recognition and Retention Plan | ' | |
Note 13. | Recognition and Retention Plan | |
On December 15, 2010, the Board of Directors adopted the 2010 Recognition and Retention Plan and Trust Agreement (the “RRP”), which was approved at the 2011 Annual Meeting of Stockholders. The RRP is designed to enable Fairmount to provide officers, other employees and non-employee directors with a proprietary interest in Fairmount and as incentive to contribute to its success. Officers, other employees and non-employee directors who are selected by the board of directors or members of a committee appointed by the Board will be eligible to receive benefits under the RRP. | ||
The Board may make grants under the 2010 Recognition and Retention Plan to eligible participants based on the following factors. RRP participants will vest in their share awards at a rate no more rapid than 20% per year over a five year period, beginning on the date of the plan share award. If service to the Company is terminated for any reason other than death, disability or change in control, the unvested share awards will be forfeited. As of September 30, 2013, 15,104 shares have been awarded under the plan. The Company recorded compensation expense of $42,568 for the year ended September 30, 2013. The Company did not record compensation expense for the year ended September 30, 2012. | ||
The Recognition and Retention Plan Trust (the “Trust”) has been established to acquire, hold, administer, invest and make distributions from the Trust in accordance with provisions of the Plan and Trust. The Company will contribute sufficient funds to the Trust so that the Trust can acquire 17,761 shares of common stock as part of the initial public offering, which are held in the Trust subject to the RRP’s vesting requirements. The RRP provides that grants to each employee and non-employee director shall not exceed 25% and 5% of the shares available under the Plan, respectively. Shares awarded to non-employee directors in the aggregate shall not exceed 30% of the shares available under the RRP. |
Stock_Option_Plan
Stock Option Plan | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Stock Option Plan | ' | ||||||||
Note 14. | Stock Option Plan | ||||||||
On December 15, 2010, the Board of Directors adopted the 2010 Stock Option Plan. The 2010 Stock Option Plan will provide Fairmount’s directors and key employees with a proprietary interest in Fairmount as an as incentive to contribute to its success. The Board of Directors of the Company may grant options to eligible employees and non-employee directors based on these factors. Plan participants will vest in their options at a rate of no more rapid than 20% per year over a five year period, beginning on the grant date of the option. Vested options will have an exercise period of ten years commencing on the date of grant. If service to the Company is terminated for any reason other than death, disability or change in control, the unvested options shall be forfeited. The Company recognizes compensation expense during the vesting period based on the fair value of the option on the date of the grant calculated using the Black Scholes Model. As of September 30, 2013, 37,760 options have been granted to eligible employees and non-employee directors. The Company recorded compensation expense of $37,684 for the year ended September 30, 2013. The Company did not record compensation expense for the year ended September 30, 2012. | |||||||||
A summary of the Stock Option Plan year ended September 30, 2013: | |||||||||
Number of | Weighted Average | ||||||||
Shares | Exercise | ||||||||
Price | |||||||||
Outstanding at September 30, 2012 | 37,760 | $ | 14.1 | ||||||
Granted | 37,760 | $ | 14.1 | ||||||
Outstanding at September 30, 2013 | 37,760 | $ | 14.1 | ||||||
Options Exercisable at September 30, 2013 | 7,552 | $ | 14.1 | ||||||
Stock_Repurchases
Stock Repurchases | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stock Repurchases | ' | ||||||||||||||||
Note 15. | Stock Repurchases | ||||||||||||||||
On September 7, 2012, the Board of Directors authorized the repurchase of up to 25,000 shares of the Company’s outstanding common stock. The repurchase program is equal to approximately 5% of the total shares outstanding. On October 4, 2012, the Board of Directors approved an increase in its current stock repurchase program from 25,000 to 40,000 shares, which is equal to approximately 8% of the total shares outstanding. The repurchase program began on September 10, 2012 and will occur over a period of six months. The following table sets forth information in connection with repurchases of the Company’s shares of common stock during the period listed. | |||||||||||||||||
Period | Total | Average | Total Number of | Maximum | |||||||||||||
Number of | Price | Shares | Number of | ||||||||||||||
Shares | Paid per | Purchased as | Shares That May | ||||||||||||||
Purchased | Share | Part of Publicly | Yet Be Purchased | ||||||||||||||
Announced Plans | Under the Plan | ||||||||||||||||
or Programs | |||||||||||||||||
September 1-30, 2012 | 22,800 | $ | 17.07 | 22,800 | 17,200 | ||||||||||||
October 1-31, 2012 | 6,000 | 17.05 | 28,800 | 11,200 | |||||||||||||
November 1-30, 2012 | 1,800 | 17.1 | 30,600 | 9,400 | |||||||||||||
December 1-31, 2012 | — | — | 30,600 | 9,400 | |||||||||||||
January 1-31, 2013 | — | — | 30,600 | 9,400 | |||||||||||||
February 1-28, 2013 | — | — | 30,600 | 9,400 |
Deferred_Compensation_Obligati
Deferred Compensation Obligation | 12 Months Ended | |
Sep. 30, 2013 | ||
Deferred Compensation Obligation | ' | |
Note 16. | Deferred Compensation Obligation | |
In February 1985, the Company entered into a deferred compensation arrangement with its former president, with payments to him or his heirs to commence on the first day of the month coinciding with the date the president attained seventy-one years of age and continue for a minimum of 10 years. The former president, at his own discretion, decided to delay the start of this agreement until fiscal year 2004. | ||
In June 2004, the Company accrued a deferred compensation obligation of $66,237, relating to this agreement, utilizing a 5% interest factor for present value calculations. This liability is intended to be ultimately funded by a $100,000 whole life insurance policy owned by the Company, insuring the former president. The final payment of the obligation was paid in July 2012. The life insurance policy was collected in the current fiscal year due to the death of the insured in July 2013. |
Regulatory_Capital_Requirement
Regulatory Capital Requirements | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Regulatory Capital Requirements | ' | ||||||||||||||||||||||||
Note 17. | Regulatory Capital Requirements | ||||||||||||||||||||||||
The Bank is subject to various regulatory capital requirements administered by Federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. The Bank must meet specific capital adequacy guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s 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 Bank to maintain minimum amounts and ratios (as defined in the regulations) of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to adjusted total assets. Management believes, as of September 30, 2013 and 2012, that the Bank meets all capital adequacy requirements to which it is subject. | |||||||||||||||||||||||||
As of September 30, 2013, the most recent notification from the Bank’s regulators categorized the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based capital, Tier 1 capital to risk-weighted assets, and Tier 1 capital to adjusted total assets, ratios. There have been no conditions or events since that notification that management believes have changed the Bank’s category. | |||||||||||||||||||||||||
The actual and required capital amounts and ratios of the Company and the Bank as of September 30, 2013 and 2012, were as follows (dollars in thousands): | |||||||||||||||||||||||||
Actual | For Capital | To Be Well | |||||||||||||||||||||||
Adequacy Purposes | Capitalized under | ||||||||||||||||||||||||
the Prompt | |||||||||||||||||||||||||
Corrective Action | |||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of September 30, 2013: | |||||||||||||||||||||||||
Fairmount Bancorp, Inc. | |||||||||||||||||||||||||
Total Risk-based Capital (to risk-weighted assets) | 13,420 | 31.99 | % | 3,373 | ³8.0 | % | N/A | N/A | |||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | 12,893 | 30.73 | % | 1,686 | ³4.0 | % | N/A | N/A | |||||||||||||||||
Tier 1 Capital (to adjusted total assets) | 12,893 | 16.75 | % | 3,080 | ³4.0 | % | N/A | N/A | |||||||||||||||||
Tangible Capital (to tangible assets) | 12,893 | 16.75 | % | 1,155 | ³1.5 | % | N/A | N/A | |||||||||||||||||
Fairmount Bank | |||||||||||||||||||||||||
Total Risk-based Capital (to risk-weighted assets) | 11,824 | 28.24 | % | 3,366 | ³8.0 | % | 4,169 | ³10.0 | % | ||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | 11,298 | 26.98 | % | 1,683 | ³4.0 | % | 2,501 | ³6.0 | % | ||||||||||||||||
Tier 1 Capital (to adjusted total assets) | 11,298 | 14.7 | % | 3,074 | ³4.0 | % | 3,943 | ³5.0 | % | ||||||||||||||||
Tangible Capital (to tangible assets) | 11,298 | 14.7 | % | 1,153 | ³1.5 | % | N/A | N/A | |||||||||||||||||
As of September 30, 2012: | |||||||||||||||||||||||||
Fairmount Bancorp, Inc. | |||||||||||||||||||||||||
Total Risk-based Capital (to risk-weighted assets) | 13,171 | 31.53 | % | 3,342 | ³8.0 | % | N/A | N/A | |||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | 12,648 | 30.27 | % | 1,671 | ³4.0 | % | N/A | N/A | |||||||||||||||||
Tier 1 Capital (to adjusted total assets) | 12,648 | 16.01 | % | 3,160 | ³4.0 | % | N/A | N/A | |||||||||||||||||
Tangible Capital (to tangible assets) | 12,648 | 16.01 | % | 1,185 | ³1.5 | % | N/A | N/A | |||||||||||||||||
Fairmount Bank | |||||||||||||||||||||||||
Total Risk-based Capital (to risk-weighted assets) | 11,353 | 27.23 | % | 3,335 | ³8.0 | % | 4,169 | ³10.0 | % | ||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | 10,831 | 25.98 | % | 1,668 | ³4.0 | % | 2,501 | ³6.0 | % | ||||||||||||||||
Tier 1 Capital (to adjusted total assets) | 10,831 | 13.73 | % | 3,154 | ³4.0 | % | 3,943 | ³5.0 | % | ||||||||||||||||
Tangible Capital (to tangible assets) | 10,831 | 13.73 | % | 1,183 | ³1.5 | % | N/A | N/A | |||||||||||||||||
The following table presents a reconciliation of the Company’s consolidated equity as determined using U.S. GAAP and the Bank’s regulatory capital amounts: | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Consolidated equity GAAP equity | $ | 13,003 | $ | 12,855 | |||||||||||||||||||||
Consolidated equity in excess of Bank equity | (1,594 | ) | (1776 | ) | |||||||||||||||||||||
Bank GAAP equity | 11,409 | 11,079 | |||||||||||||||||||||||
Core deposit intangible | (33 | ) | (41 | ) | |||||||||||||||||||||
Accumulated other comprehensive (income) loss, net of tax | (78 | ) | (207 | ) | |||||||||||||||||||||
Total tangible, leverage and core (tier 1) capital | 11,298 | 10,831 | |||||||||||||||||||||||
Qualifying allowance for loan losses | 526 | 522 | |||||||||||||||||||||||
Total risk-based capital | $ | 11,824 | $ | 11,353 | |||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||
Note 18. | Fair Value Measurements | ||||||||||||||||||||
Generally accepted accounting principles (GAAP) define fair value, establish a framework for measuring fair value, a three-level valuation hierarchy for disclosure of fair value measurement and enhance disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. GAAP clarifies the definition of fair value as 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. An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: | |||||||||||||||||||||
Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||||||
Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market for the asset or liability, for substantially the full term of the financial instrument. | |||||||||||||||||||||
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement and based on the Company’s own assumptions about market participants’ assumptions. | |||||||||||||||||||||
The following table presents a summary of financial assets and liabilities measured at fair value at September 30, 2013 and September 30, 2012: | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||
Losses | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
Mortgage-backed securities invested in Government Agencies | $ | — | $ | 4,021,365 | $ | — | $ | 4,021,365 | $ | — | |||||||||||
Collateralized mortgage obligations invested in Government Agencies | 529,739 | 529,739 | — | ||||||||||||||||||
State and Municipal Securities | 1,240,621 | 1,240,621 | |||||||||||||||||||
Impaired loans | — | — | 972,787 | 972,787 | — | ||||||||||||||||
Foreclosed assets | 20,000 | 20,000 | $ | 16,781 | |||||||||||||||||
September 30, 2012 | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
Mortgage-backed securities invested in Government Agencies | $ | — | $ | 5,979,683 | $ | — | $ | 5,979,633 | $ | — | |||||||||||
Collaterialized mortgage obligations invested in Government Agencies | — | 1,823,892 | — | 1,823,892 | — | ||||||||||||||||
Impaired loans | — | — | 940,717 | 940,717 | — | ||||||||||||||||
Foreclosed assets | — | 295,750 | 295,750 | — | |||||||||||||||||
In accordance with generally accepted accounting principles concerning accounting for Loan and Lease Losses, losses of $16,781 and $0 for the years ended September 30, 2013 and September 30, 2012, respectively, were recognized as a charge to the Allowance for Loan and Lease Losses at the time the foreclosed assets were acquired based on an independent appraisal of the property’s fair value. | |||||||||||||||||||||
The methods and assumptions used to estimate the fair values, including items in the above tables, are included in the disclosures that follow. | |||||||||||||||||||||
Cash and Cash Equivalents (Carried at Cost). The carrying amounts of cash and cash equivalents approximate fair value. | |||||||||||||||||||||
Certificates of Deposit (Carried at Cost). The carrying amounts of certificates of deposit approximate fair value. | |||||||||||||||||||||
Securities Available for Sale (Carried at Fair Value). Where quoted prices are available in an active market, securities available for sale are classified within Level 1 of the valuation hierarchy. Level 1 would include highly liquid government bonds, mortgage products and exchange-traded equities. If quoted market prices are not available, securities available for sale are classified within level 2 and fair value values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 would include U.S. agency securities, mortgage-backed securities, obligations of states and political subdivisions and certain corporate, asset-backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. | |||||||||||||||||||||
Federal Home Loan Bank Stock (Carried at Cost). The carrying amount of Federal Home Loan Bank stock approximates fair value, and considers the limited marketability of such securities. | |||||||||||||||||||||
Loans Receivable (Carried at Cost). The fair values of loans are estimated using discounted cash flow analyses, using market rates at the statement of condition date that reflect the credit and interest rate risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently with no significant change in credit risk, fair values are based on carrying values. | |||||||||||||||||||||
Impaired Loans (Generally Carried at Fair Value). Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Impaired loans are measured at an observable market price (if available), or at fair value of the loan’s collateral (if the loan is collateral dependent). When the loan is dependent on collateral, fair value of collateral is determined by appraisal or independent valuation, which is then adjusted for the related cost to sell. Impaired loans allocated to the Allowance for Loan and Lease Losses are measured at the lower of cost or fair value on a nonrecurring basis. | |||||||||||||||||||||
Foreclosed Assets (Carried at Lower of Cost or Fair Value Less Estimated Selling Costs). Fair values of foreclosed assets are measured at fair value less cost to sell. The valuation of the fair value measurement follows GAAP. Foreclosed assets are measured on a nonrecurring basis. | |||||||||||||||||||||
Deposit Liabilities (Carried at Cost). The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair value for certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities. | |||||||||||||||||||||
Federal Home Loan Bank Advances (Carried at Cost). Fair values of FHLB advances are estimated using discounted cash flows analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. | |||||||||||||||||||||
Accrued Interest Receivable and Payable (Carried at Cost). The carrying amounts of accrued interest approximate fair value. | |||||||||||||||||||||
Off Balance Sheet Credit-Related Instruments (Disclosures at Cost). Fair values for off balance-sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of these instruments is not material. | |||||||||||||||||||||
The following table presents quantitative information about Level 3 Fair Value Measurements for certain financial assets measured at fair value on a non-recurring basis for September 30, 2013 and September 30, 2012: | |||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements for | |||||||||||||||||||||
September 30, 2013 and September 30, 2012 | |||||||||||||||||||||
Valuation Techniques | Unobservable Input | Range | |||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | Discounted appraised value | Selling costs | 6-12% | ||||||||||||||||||
Foreclosed assets | Discounted appraised value | Selling costs | 6-12% | ||||||||||||||||||
The following table presents a reconciliation of the beginning and ending balances for Level 3 assets; | |||||||||||||||||||||
Impaired Loans | Foreclosed Assets | ||||||||||||||||||||
Balance, September 30, 2011 | 717,648 | 884,000 | |||||||||||||||||||
Purchases, settlements and charge-offs | (230,000 | ) | (588,250 | ) | |||||||||||||||||
Transfers in and/or out of Level 3 | 453,069 | — | |||||||||||||||||||
Balance, September 30, 2012 | 940,717 | 295,750 | |||||||||||||||||||
Purchases, settlements and charge-offs | (294,140 | ) | (295,750 | ) | |||||||||||||||||
Transfers in and/or out of Level 3 | 326,210 | 20,000 | |||||||||||||||||||
Balance, September 30, 2013 | $ | 972,787 | $ | 295,750 | |||||||||||||||||
The estimated fair values of the Company’s financial instruments were as follows: | |||||||||||||||||||||
Fair Value Measurements at September 30, 2013 Using | |||||||||||||||||||||
Carrying | Quoted | Significant | Significant | Fair | |||||||||||||||||
Value | Prices in | Other | Unobservable | Value | |||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||
Market for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 3,851 | $ | 3,851 | $ | — | $ | — | $ | 3,851 | |||||||||||
Certificates of deposit | 3,784 | 3,784 | — | — | 3,784 | ||||||||||||||||
Securities available for sale | 5,792 | — | 5,792 | — | 5,792 | ||||||||||||||||
Securities held to maturity | 3,756 | — | 3,603 | — | 3,603 | ||||||||||||||||
Federal Home Loan Bank stock | 454 | — | 454 | — | 454 | ||||||||||||||||
Loans receivable, net | 55,375 | — | 55,058 | 973 | 56,031 | ||||||||||||||||
Foreclosed real estate | 20 | — | — | 20 | 20 | ||||||||||||||||
Accrued interest receivable | 233 | — | 233 | — | 233 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 55,930 | — | 56,178 | — | 56,178 | ||||||||||||||||
Federal Home Loan Bank advances | 8,000 | — | 8,698 | — | 8,698 | ||||||||||||||||
Accrued interest payable | 43 | — | 43 | — | 43 | ||||||||||||||||
Off-Balance sheet financial instruments | — | — | — | — | |||||||||||||||||
Fair Value Measurements at September 30, 2012 Using | |||||||||||||||||||||
Carrying | Quoted | Significant | Significant | Fair | |||||||||||||||||
Value | Prices in | Other | Unobservable | Value | |||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||
Market for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 4,363 | $ | 4,363 | $ | — | $ | — | $ | 4,363 | |||||||||||
Securities available for sale | 3,532 | 3,532 | — | — | 3,532 | ||||||||||||||||
Securities held to maturity | 7,804 | — | 7,804 | — | 7,804 | ||||||||||||||||
Federal Home Loan Bank stock | 3,637 | — | 3,804 | — | 3,804 | ||||||||||||||||
Loans receivable, net | 480 | — | 480 | — | 480 | ||||||||||||||||
Foreclosed real estate | 54,650 | — | 54,580 | 941 | 55,521 | ||||||||||||||||
Accrued interest receivable | 296 | — | — | 296 | 296 | ||||||||||||||||
Financial liabilities: | 290 | — | 290 | — | 290 | ||||||||||||||||
Deposits | 58,026 | — | 58,064 | — | 58,064 | ||||||||||||||||
Federal Home Loan Bank advances | 8,000 | — | 8,987 | — | 8,987 | ||||||||||||||||
Accrued interest payable | 43 | — | 43 | — | 43 | ||||||||||||||||
Off-Balance sheet financial instruments | — | — | — | — | — |
Financial_Instruments_with_Off
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Financial Instruments with Off-Balance Sheet Risk | ' | ||||||||
Note 19. | Financial Instruments with Off-Balance Sheet Risk | ||||||||
The Company is 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 include commitments to originate loans. These loans involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized on the balance sheet. | |||||||||
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments is represented by the contractual amount of these instruments. The Company uses the same credit policies for these instruments as it does for on-balance sheet instruments. | |||||||||
The commitment to originate loans is an agreement to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates and may require the payment of a fee. The Company expects that a large majority of its commitments will be fulfilled subsequent to the balance sheet date and therefore, represent future cash requirements. | |||||||||
The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the borrower. | |||||||||
Loan commitments representing off-balance sheet risk at September 30, 2013 and 2012 were as follows: | |||||||||
Contract or Notional Amount | |||||||||
2013 | 2012 | ||||||||
Mortgage loan commitments-fixed rate (3.00% - 7.75%) | $ | — | $ | 850,500 | |||||
Unused lines of credit | 3,686,945 | 1,725,628 | |||||||
Available home equity lines of credit | 1,845,383 | 2,187,617 | |||||||
Standby letters of credit | 121,466 | 216,997 | |||||||
$ | 5,653,794 | $ | 4,980,742 | ||||||
Earnings_per_Share
Earnings per Share | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings per Share | ' | ||||||||
Note 20. | Earnings per Share | ||||||||
Earnings per common share on income before extraordinary income is computed by dividing income before extraordinary item by the weighted average number of common shares outstanding during the period and the earnings per share on the extraordinary items is computed by dividing the extraordinary item by the weighted average number of common shares outstanding during the period. Weighted average shares excludes unallocated ESOP shares and unearned RRP shares. Basic earnings per share excludes dilution and is computed by dividing net income by the basic weighted average number of common shares outstanding during the period. Dilutive earnings per share reflects the potential dilution that could occur if stock options were exercised and is computed by dividing net income by the dilutive weighted average number of common shares outstanding during the period. | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Income before extraordinary item | $ | 257,470 | $ | 326,292 | |||||
Extraordinary item, gain on business combination | — | 1,022,074 | |||||||
Net income | $ | 257,470 | $ | 1,348,366 | |||||
Weighted average number of shares used in: | |||||||||
Basic earnings per share | 445,643 | 472,278 | |||||||
Dilutive common stock equivalents: | |||||||||
Stock options | 11,139 | 6,441 | |||||||
Dilutive earnings per share | 456,782 | 478,719 | |||||||
Basic and dilutive earnings per common share: | |||||||||
Income before extraordinary item, basic | $ | 0.58 | $ | 0.69 | |||||
Extraordinary item, gain on business combination, basic | — | 2.17 | |||||||
Net income, basic | $ | 0.58 | $ | 2.86 | |||||
Income before extraordinary item, dilutive | $ | 0.56 | $ | 0.68 | |||||
Extraordinary item, gain on business combination, dilutive | — | 2.14 | |||||||
Net income, dilutive | $ | 0.56 | $ | 2.82 | |||||
Parent_Company_Only_Financial_
Parent Company Only Financial Statements | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Parent Company Only Financial Statements | ' | ||||||||
Note 21. | Parent Company Only Financial Statements | ||||||||
Presented below are the condensed balance sheet, statement of operations and statement of cash flows for Fairmount Bancorp, Inc. for the year ended September 30, 2013. | |||||||||
CONDENSED BALANCE SHEET | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Assets: | |||||||||
Cash and due from bank | $ | 221,881 | $ | 378,404 | |||||
Certificates of deposit | 1,030,436 | 1,025,167 | |||||||
Investment in bank subsidiary | 11,408,505 | 11,079,179 | |||||||
Loans receivable | 324,704 | 368,549 | |||||||
Other assets | 26,953 | 28,740 | |||||||
Total assets | $ | 13,012,479 | $ | 12,880,039 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Liabilities: | |||||||||
Accounts payable | 9,250 | 24,849 | |||||||
Total liabilities | 9,250 | 24,849 | |||||||
Stockholders’ Equity | |||||||||
Preferred stock, $0.01 par value; authorized 1,000,000; none issue | — | — | |||||||
Common stock, $0.01 par value; authorized 4,000,000; 500,314 issued; 477,514 and 477,514 shares outstanding at September 30, 2013 and 2012, respectively | 5,003 | 5,003 | |||||||
Additional paid in capital | 4,040,748 | 3,854,869 | |||||||
Unearned common stock held by: | |||||||||
Employee Stock Ownership Plan | (209,736 | ) | (251,607 | ) | |||||
Recognition and Retention Plan | (245,145 | ) | (162,271 | ) | |||||
Retained earnings | 9,334,634 | 9,077,164 | |||||||
Accumulated other comprehensive income | 77,725 | 206,929 | |||||||
Total stockholders’ equity | 13,003,229 | 12,855,190 | |||||||
Total liabilities and stockholders’ equity | $ | 13,012,479 | $ | 12,880,039 | |||||
CONDENSED STATEMENT OF OPERATIONS | |||||||||
Year Ended | Year Ended | ||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Interest income on loans | $ | 16,873 | $ | 18,910 | |||||
Interest and dividends on investments | 5,722 | 10,273 | |||||||
Total income | 22,595 | 29,183 | |||||||
Operating expenses | 97,036 | 111,563 | |||||||
Loss before equity in net income of bank subsidiary | (74,441 | ) | (82,380 | ) | |||||
Income tax benefits | 25,310 | 28,009 | |||||||
Net loss before equity in net income of bank subsidiary | (49,131 | ) | (54,371 | ) | |||||
Equity in net income of bank subsidiary | 306,601 | 1,402,737 | |||||||
Net income | $ | 257,470 | $ | 1,348,366 | |||||
CONDENSED STATEMENT OF CASH FLOWS | |||||||||
Year Ended | Year Ended | ||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Cash flows from operating activities: | |||||||||
Net loss | $ | (49,131 | ) | $ | (54,371 | ) | |||
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | |||||||||
Equity in net income of subsidiary | 306,601 | 1,402,737 | |||||||
Compensation cost on allocated ESOP shares | 71,676 | 59,750 | |||||||
Compensation cost on allocated RRP shares and stock options | 81,177 | — | |||||||
(Increase) decrease in other assets | 1,787 | 9,602 | |||||||
Increase (decrease) in other liabilities | (15,599 | ) | 17,349 | ||||||
Net cash provided (used) by operating activities | 396,511 | 1,435,067 | |||||||
Cash flow from investing activities: | |||||||||
(Increase) decrease in loans | 43,845 | 49,510 | |||||||
Investment in bank subsidiary | (458,530 | ) | (1,382,009 | ) | |||||
Net cash provided (used) by investing activities | (414,685 | ) | (1,332,499 | ) | |||||
Cash flows from financing activities: | |||||||||
Proceeds from issuance of common stock, net of costs | — | 351,573 | |||||||
Net increase in interest-bearing deposits | (5,269 | ) | (8,051 | ) | |||||
Repurchase of common stock | (133,080 | ) | (389,240 | ) | |||||
Net cash provided (used) by financing activities | (138,349 | ) | (45,718 | ) | |||||
Net increase (decrease) in cash and cash equivalents | (156,523 | ) | 56,850 | ||||||
Cash and cash equivalents, beginning balance | 378,404 | 321,554 | |||||||
Cash and cash equivalents, ending balance | $ | 221,881 | $ | 378,404 | |||||
Supplemental schedule of noncash financing activities: | |||||||||
On October 13, 2011, the Company loaned $63,478 to the ESOP which was used to acquire 4,502 shares of common stock. The loan is secured by the shares purchased and is shown as Unearned ESOP shares in the consolidated balance sheets. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2013 | |
Nature of Operations | ' |
Nature of Operations | |
Fairmount Bancorp, Inc., a Maryland corporation (the “Company”) was incorporated on November 30, 2009, to serve as the holding company for Fairmount Bank (the “Bank”), a federally chartered savings bank. On June 2, 2010, in accordance with a Plan of Conversion adopted by its Board of Directors and approved by its members, the Bank converted from a federal mutual savings bank to Maryland state chartered commercial bank and become the wholly owned subsidiary of the Company. The conversion was accomplished through the sale and issuance of 444,038 shares of common stock at a price of $10.00 per share, through which the Company received proceeds of approximately $3,742,000, net of offering expenses of approximately $699,000. Approximately 50% of the net proceeds of the offering, or $1,900,000, were contributed by the Company to the Bank in return for 100% of the issued and outstanding shares of common stock of the Bank. In connection with the conversion, the Bank’s Board of Directors adopted an employee stock ownership plan (the “ESOP”) which subscribed for 8% of the sum of the number of shares, or 35,523 shares of common stock sold in the offering. | |
On October 12, 2011, the Company completed the acquisition of Fullerton Federal Savings Association (“Fullerton”) in a conversion merger transaction. In connection with the acquisition and pursuant to the terms of the Agreement and Plan of Conversion Merger and the related Plan of Conversion Merger, the Company issued and sold 56,276 shares of common stock at a price of $14.10 per share, through which the Company received proceeds of approximately $452,000, net of offering expenses of $341,000. The shares were sold in a subscription offering to depositors of Fullerton and to the Company’s Employee Stock Ownership Plan and in a community offering to the Company’s Recognition and Retention Plan (the “RRP”) and to the general public. The amount of common stock offered for sale was based on an independent valuation of Fullerton. | |
In accordance with the Office of the Commissioner of Financial Regulation of the State of Maryland regulations, upon the completion of the conversion, the Bank restricted retained earnings by establishing a liquidation account. The liquidation account will be maintained for the benefit of eligible account holders who continue to maintain their accounts at the Bank after conversion. The liquidation account will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation account. In the event of a complete liquidation of the Bank, and only in such event, each account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the adjusted qualifying account balances then held. The Bank may not pay dividends if those dividends would reduce equity capital below the required liquidation account amount. | |
Fairmount Bank is a community-oriented commercial bank, which provides a variety of financial services to individuals and corporate customers through its home Baltimore County, Maryland, and is subject to competition from other financial institutions. The Bank’s primary deposit products are interest-bearing savings, certificates of deposit, and individual retirement accounts. The Bank’s primary lending products are single-family residential mortgage loans. The Bank is subject to the regulations of certain Federal agencies and undergoes periodic examinations by those regulatory authorities. The accounting policies of the Bank conform to accounting principles generally accepted in the United States of America and general practices within the banking industry. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Fairmount Bancorp, Inc., its wholly owned subsidiary Fairmount Bank. Material intercompany accounts and transactions have been eliminated in consolidation. | |
Estimates | ' |
Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for losses on loans and leases and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowances for losses on loans and leases and foreclosed real estate, management obtains independent appraisals for significant properties. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks, interest-bearing deposits in other banks, certificates of deposit less than one year and federal funds sold. | |
Securities | ' |
Securities | |
Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. | |
Securities that the Company has the positive intent and ability to hold to maturity are classified as held to maturity and are reported at amortized cost (including amortization of premium or accretion of discount). | |
Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Unrealized gains and losses are reported as increases or decreases in other comprehensive income. Realized gains and losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using a method which approximates the interest method over the terms of the securities. Declines in the fair value of available for sale securities below their cost that are deemed to be other than temporary, if any, are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. | |
Federal Home Loan Bank Stock | ' |
Federal Home Loan Bank Stock | |
Federal Home Loan Bank of Atlanta (the “FHLB”) stock is an equity interest in the FHLB, which does not have a readily determinable fair value for purposes of Generally Accepted Accounting Standards related to Accounting for Certain Investments in Debt and Equity Securities, because its ownership is restricted and it lacks a market. FHLB stock can be sold back only at par value of $100 per share and only to the FHLB or another member institution. As of September 30, 2013 and 2012, the Company owned shares totaling $453,700 and $479,700, respectively. | |
The Company evaluates the FHLB stock for impairment in accordance with generally accepted accounting principles. The Company’s determination of whether this investment is impaired is based on an assessment of the ultimate recoverability of its cost rather than by recognizing temporary declines in value. The determination of whether a decline in value affects the ultimate recoverability of its cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and accordingly on the customer base of the FHLB. | |
Loans | ' |
Loans | |
Loans are generally carried at the amount of unpaid principal, less the allowance for loan losses and adjusted for deferred loan fees, which are amortized over the term of the loan using the interest method. Interest on loans is accrued based on the principal amounts outstanding. It is the Company’s policy to discontinue the accrual of interest when a loan is specifically determined to be impaired or when the principal or interest is delinquent for 90 days or more. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest income generally is not recognized on specific impaired loans unless the likelihood of further loss is remote. Cash collections on such loans are applied as reductions of the loan principal and no interest income is recognized on those loans until the principal balance has been collected. The carrying value of impaired loans is based on the present value of the loan’s expected future cash flows or, alternatively, the observable market price of the loan or the fair value of the collateral. The loan may be returned to accrual status if unpaid principal and interest are paid so that the loan is brought current and performing according to the contractual terms of the loan. | |
When a loan is 15 days past due, the Company will send the borrower a late notice. The Company also contacts the borrower by phone if the delinquency is not corrected promptly after the notice has been sent. When the loan is 30 days past due, the Company will send the borrower a letter reminding the borrower of the delinquency, and attempts to contact the borrower personally to determine the reason for the delinquency in order to ensure that the borrower understands the terms of the loan and the importance of making payments on or before the due date. If necessary, subsequent delinquency notices are issued and the account will be monitored on a regular basis thereafter. By the 90th day of delinquency, the Company will send the borrower a final demand for payment and may recommend foreclosure. Loans are charged off when the Company believes that the recovery of principal is improbable. A summary report of all loans 30 days or more past due is provided to the board of directors of the Company each month. | |
Allowance for Loan and Lease Losses | ' |
Allowance for Loan and Lease Losses | |
The allowance for loan losses is established through a provision for loan losses. The Company maintains the allowance at a level believed, to the best of management’s knowledge, to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate at each reporting date. Subsequent recoveries, if any, are credited to the allowance. | |
The allowance for loan losses is evaluated on no less than a quarterly basis in order to identify those inherent losses and to assess the overall collection probability for the loan portfolio. The evaluation process by portfolio segment includes, among other things, an analysis of delinquency trends, non-performing loan trends, the level of charge-offs and recoveries, prior loss experience, total loans outstanding, the volume of loan originations, the type, size and geographic concentration of the loans, the value of collateral securing the loan, the borrower’s ability to repay and repayment performance, the number of loans requiring heightened management oversight, local economic conditions and industry experience. | |
The establishment of the allowance for loan losses is significantly affected by management’s judgment and uncertainties, and there is a likelihood that different amounts would be reported under different conditions or assumptions. The Office of the Commissioner of Financial Regulation of the State of Maryland as an integral part of its examination process, periodically reviews the allowance for loan losses and may require the Company to make additional provisions for estimated loan losses based upon judgments different from those of management. | |
The Company’s policies, consistent with regulatory guidelines, provide for the classification of loans and other assets that are considered to be of lesser quality as substandard, doubtful, or loss assets. An asset is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets include those assets characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Assets (or portions of assets) classified as loss, are those considered uncollectible and of such little value that there continuance as assets is not warranted. Assets that do not expose us to risk sufficient to warrant classification in one of the aforementioned categories, but which possess potential weaknesses that deserve close attention, are required to be designated as special mention. | |
A loan is considered 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 determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Impairment is measured on a loan by loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. | |
Loans may be periodically modified in a troubled debt restructuring (TDR) to make concessions to help a borrower remain current on the loan and to avoid foreclosure. Generally we do not forgive principal or interest on a loan or modify the interest rate on loans that are below market rates. When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans. If we determine that the value of the modified loan is less than the recorded investment in the loan, impairment is recognized through a specific allowance estimate or a charge-off to the allowance. | |
The allowance consists of specific, general, and unallocated components. The specific component relates to loans that are classified as doubtful, substandard, or special mention. For such loans that are also classified as impaired, a specific allowance is established for that portion of the loan that is deemed uncollectible. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Determinations as to the classification of assets and the amount of loss allowances are subject to review by our principal federal regulator, the Office of the Commissioner of Financial Regulation for the State of Maryland, which can require that we establish additional loss allowances. The Company regularly reviews its asset portfolio to determine whether any assets require classification in accordance with applicable regulations. | |
The Company maintains the allowance for loan and lease losses at a level considered adequate to provide for losses inherent in the loan portfolio. While the Company utilizes available information to recognize losses on loans, future additions to the allowances for loan and lease losses may be necessary based on changes in economic conditions, particularly in its’ market area in the state of Maryland. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan and lease losses. Such agencies may require the Company to recognize additions to the allowance for loan and lease losses based on their judgments about information available to them at the time of their examination. | |
Actual loan losses may be significantly more than the allowance for loan and lease losses the Company has established, which could have a material negative effect on its financial statements. | |
Premises and Equipment | ' |
Premises and Equipment | |
Land is carried at cost. Property and equipment is carried at cost less accumulated depreciation. Depreciation is computed on the straight-line method over estimated useful lives of assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred; significant renewals and betterments are capitalized. | |
Foreclosed Assets | ' |
Foreclosed Assets | |
Assets acquired through, or in lieu of, foreclosure is initially recorded at the lower of cost (principal balance of the former mortgage loan plus costs of obtaining title and possession) or fair value at the date of acquisition. Costs relating to development and improvement of property are capitalized, whereas costs relating to the holding of property are expensed. | |
Management periodically performs valuations, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated net realizable value. | |
Income Taxes | ' |
Income Taxes | |
The Company accounts for income taxes in accordance with income tax accounting guidance in ASC Topic 740. The income tax accounting guidance results in two components of income tax expense – current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to taxable income or loss. Deferred taxes are provided for the temporary differences between the tax basis and the financial basis of the Company’s assets and liabilities. Deferred tax assets and liabilities are determined based on the enacted rates that are expected to be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax expense or benefit is the result of the changes in the deferred tax assets and liabilities. | |
Fairmount Bancorp, Inc. has entered into a tax sharing agreement with Fairmount Bank. The agreement provides that Fairmount Bancorp, Inc. will file a consolidated federal tax return, and that the tax liability shall be apportioned among the entities as would be computed if each entity had filed a separate return. According to Maryland tax law, Fairmount Bancorp, Inc. and Fairmount Bank file separate Maryland state tax returns. | |
Common Stock Repurchase Program | ' |
Common Stock Repurchase Program | |
The Company adopted a common stock repurchase program in which shares repurchased reduce the amount of shares issued and outstanding. The repurchased shares may be reissued in connection with share-based compensations plans and for general corporate purposes. Under this plan, the Company approved the repurchase of a specific amount of shares and will extend over a period of six months beginning September 10, 2013. The common stock repurchase program began in September 2012 and was completed in February 2013. | |
Comprehensive Income (Loss) | ' |
Comprehensive Income (Loss) | |
Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of equity, such items, along with net income, are components of comprehensive income. | |
Off-Balance Sheet Financial Instruments | ' |
Off-Balance Sheet Financial Instruments | |
In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit. These loans involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized on the balance sheet. Such financial instruments are recorded in the statement of income when they are funded. | |
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments is represented by the contractual amount of these instruments. The Company uses the same credit policies for these instruments as it does for the on-balance sheet instruments. | |
Advertising Costs | ' |
Advertising Costs | |
Advertising costs are expensed as incurred. For the years ended September 30, 2013 and 2012, advertising expense was $1,746 and $13,687 respectively. | |
Concentrations of Credit Risk | ' |
Concentrations of Credit Risk | |
The Company has approximately $2,750,000 and $3,512,000, in deposits in other financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”), as of September 30, 2013 and September 30, 2012, respectively. The Company’s management considers this a normal business risk. The Company also maintains accounts with stock brokerage firms containing securities. These balances are insured up to $500,000 by the Securities Investor Protection Corporation. The Company was required to maintain a $100,000 minimum balance in a deposit account with Maryland Financial as of September 30, 2013 and 2012, in relation to a sweep account. | |
Most of the Company’s activities are with customers in the Maryland counties of Baltimore and Harford and portions of the City of Baltimore. Notes 1, 4, and 5 discuss the types of activities and lending the Company engages in. The Bank does not have any significant concentrations in any one industry or customer. | |
Subsequent Events | ' |
Subsequent Events | |
The company has evaluated events and transactions subsequent to September 30, 2013 through the date these financial statements were issued. Based on definitions and requirements of Generally Accepted Accounting Principles for “Subsequent Events,” the Company has not identified any events that would require adjustments to, or disclosure in the financial statements. | |
Reclassification | ' |
Reclassifications | |
Certain prior year amounts have been reclassified to conform to the current year’s method of presentation. Such reclassifications have no effect on net income. |
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
Carrying Value of Fullerton's Assets and Liabilities Adjusted to Reflect Fair Value | ' | ||||
The Company recorded the following assets and liabilities as of October 12, 2011. These amounts represent the carrying value of Fullerton’s assets and liabilities adjusted to reflect the fair value at the date of the acquisition. The discounts and premiums resulting from the fair value adjustments will be accreted and amortized on a level yield basis over the anticipated lives of the underlying financial assets or liabilities. This amortization of premiums and discounts is not expected to have a material impact on the Company’s results of operations on future periods. | |||||
Assets Acquired | |||||
Assets | |||||
Cash and cash equivalents | $ | 4,224,279 | |||
Securities available for sale | 827,139 | ||||
Loans receivable | 2,414,712 | ||||
Federal Home Loan Bank stock, at cost | 15,300 | ||||
Premises and equipment | 887,503 | ||||
Other assets | 174,579 | ||||
Total assets acquired | $ | 8,543,512 | |||
Liabilities Assumed | |||||
Liabilities | |||||
Deposits | $ | 7,333,130 | |||
Other liabilities | 77,427 | ||||
Total liabilities assumed | $ | 7,410,557 | |||
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Amortized Cost and Estimated Market Value of Securities Classified as Available for Sale and Held to Maturity | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of securities classified as available for sale and held to maturity at September 30, 2013 and 2012, are as follows: | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | 3,855,067 | $ | 166,298 | $ | — | $ | 4,021,365 | |||||||||||||||||
Collateralized Mortgage Obligations | 535,148 | 5,409 | 529,739 | ||||||||||||||||||||||
State and Municipal Securities | 1,273,145 | — | 32,524 | 1,240,621 | |||||||||||||||||||||
Total securities available for sale | $ | 5,663,360 | $ | 166,298 | $ | 37,933 | $ | 5,791,725 | |||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||
U.S. Government and Federal Agency Obligations | $ | 3,756,238 | $ | 4,991 | $ | 158,526 | $ | 3,602,703 | |||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | 5,629,774 | $ | 349,909 | $ | — | $ | 5,979,683 | |||||||||||||||||
Collateralized Mortgage Obligations | 1,832,052 | 538 | 8,698 | 1,823,892 | |||||||||||||||||||||
Total securities available for sale | $ | 7,461,826 | $ | 350,447 | $ | 8,698 | $ | 7,803,575 | |||||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||
U.S. Government and Federal Agency Obligations | $ | 1,999,145 | $ | 11,784 | $ | — | $ | 2,010,929 | |||||||||||||||||
State and Municipal Securities | 1,637,827 | 155,142 | — | 1,792,969 | |||||||||||||||||||||
Total securities held to maturity | $ | 3,636,972 | $ | 166,926 | $ | — | $ | 3,803,898 | |||||||||||||||||
Securities with Gross Unrealized Losses Aggregated by Investment Category and Length of Time That Individual Securities Have Been in Continuous Loss Position | ' | ||||||||||||||||||||||||
Securities with gross unrealized losses at September 30, 2013 and 2012 aggregated by investment category and length of time that individual securities have been in a continuous loss position are as follows: | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Collateralized Mortgage Obligations | — | — | 529,739 | 5,409 | 529,739 | 5,409 | |||||||||||||||||||
State and Municipal Securities | 1,240,621 | 32,524 | — | — | 1,240,621 | 32,524 | |||||||||||||||||||
$ | 1,240,621 | $ | 32,524 | $ | 529,739 | $ | 5,409 | $ | 1,770,360 | $ | 37,933 | ||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||
U.S. Government and Federal Agency Obligations | $ | 2,849,720 | $ | 158,526 | $ | 2,849,720 | $ | 158,526 | |||||||||||||||||
State and Municipal Securities | — | — | — | — | — | — | |||||||||||||||||||
$ | 2,849,720 | $ | 158,526 | $ | — | $ | — | $ | 2,849,720 | $ | 158,526 | ||||||||||||||
30-Sep-12 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Collateralized Mortgage Obligations | 1,435,900 | 8,698 | — | — | 1,435,900 | 8,698 | |||||||||||||||||||
$ | 1,435,900 | $ | 8,698 | $ | — | $ | — | $ | 1,435,900 | $ | 8,698 | ||||||||||||||
Securities Held to Maturity | |||||||||||||||||||||||||
U.S. Government and Federal Agency Obligations | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
State and Municipal Securities | — | — | — | — | — | — | |||||||||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Available-for-sale Securities | ' | ||||||||||||||||||||||||
Amortized Cost and Estimated Market Value of Securities, by Contractual Maturity | ' | ||||||||||||||||||||||||
The amortized cost and estimated fair value of securities as of September 30, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Securities Available for Sale | Securities Held to Maturity | ||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Due after one year through five years | 550,169 | 549,536 | 1,740,850 | 1,724,203 | |||||||||||||||||||||
Due five years to ten years | 490,391 | 475,290 | 2,015,388 | 1,878,500 | |||||||||||||||||||||
Due after ten years | 4,622,800 | 4,766,899 | — | — | |||||||||||||||||||||
$ | 5,663,360 | $ | 5,791,725 | $ | 3,756,238 | $ | 3,602,703 | ||||||||||||||||||
Loans Receivable | ' | ||||||||||||||||||||||||
Amortized Cost and Estimated Market Value of Securities, by Contractual Maturity | ' | ||||||||||||||||||||||||
Loans and their remaining contractual maturities at September 30, 2013, were as follows: | |||||||||||||||||||||||||
Maturities | |||||||||||||||||||||||||
One year or less | $ | 3,095,533 | |||||||||||||||||||||||
After one year to five years | 7,595,647 | ||||||||||||||||||||||||
After five years to ten years | 17,055,071 | ||||||||||||||||||||||||
After ten years to fifteen years | 7,862,923 | ||||||||||||||||||||||||
After fifteen years | 20,572,728 | ||||||||||||||||||||||||
$ | 56,181,902 | ||||||||||||||||||||||||
Certificates of Deposit | ' | ||||||||||||||||||||||||
Amortized Cost and Estimated Market Value of Securities, by Contractual Maturity | ' | ||||||||||||||||||||||||
Certificates of deposit and their remaining maturities at September 30, 2013, are as follows: | |||||||||||||||||||||||||
2014 | $ | 17,425,755 | |||||||||||||||||||||||
2015 | 8,782,333 | ||||||||||||||||||||||||
2016 | 2,751,064 | ||||||||||||||||||||||||
2017 | 2,176,707 | ||||||||||||||||||||||||
2018 | 3,306,510 | ||||||||||||||||||||||||
$ | 34,442,369 | ||||||||||||||||||||||||
Loans_and_Allowance_for_Loan_a1
Loans and Allowance for Loan and Lease Losses (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Principal Categories of Loan Portfolio | ' | ||||||||
The principal categories of the loan portfolio at September 30, 2013 and 2012 were as follows: | |||||||||
2013 | 2012 | ||||||||
Real estate loans | |||||||||
One-to four-family owner occupied | $ | 26,363,952 | $ | 26,097,798 | |||||
One-to four-family non-owner occupied | 17,480,953 | 17,855,304 | |||||||
Home equity | 2,243,716 | 2,172,247 | |||||||
Mobile home | 1,785,854 | 2,068,672 | |||||||
Secured by other properties | 2,783,794 | 2,613,025 | |||||||
Construction and land development | 3,911,156 | 3,262,452 | |||||||
Total real estate loans | 54,569,425 | 54,069,498 | |||||||
Other loans | |||||||||
Secured commercial | 1,603,318 | 1,212,534 | |||||||
Savings | 9,159 | 10,290 | |||||||
Total other loans | 1,612,477 | 1,222,824 | |||||||
Total loans | 56,181,902 | 55,292,322 | |||||||
Unamortized premiums and loan fees | 250,880 | 319,713 | |||||||
Unearned income on loans | (323,966 | ) | (344,450 | ) | |||||
Allowance for loan and lease losses | (733,451 | ) | (617,474 | ) | |||||
Total loans, net | $ | 55,375,365 | $ | 54,650,111 | |||||
Loans to Officers, Directors and Related Affiliates | ' | ||||||||
Loans to officers, directors and related affiliates at September 30, 2013 and 2012, were as follows: | |||||||||
2013 | 2012 | ||||||||
Balance, beginning of year | $ | 485,531 | $ | 513,789 | |||||
Additions | 214,902 | — | |||||||
Repayments | (27,113 | ) | (28,258 | ) | |||||
Balance, end of year | $ | 673,320 | $ | 485,531 | |||||
Credit_Quality_of_Financing_Re1
Credit Quality of Financing Receivables and the Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Balance of Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||
The allowance for loan losses allocated to each portfolio segment is not necessarily indicative of future losses in any particular portfolio segment and does not restrict the use of the allowance to absorb losses in other portfolio segments. | |||||||||||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||||||
One-to | One-to | Mobile | Secured by | Construction | Other | Unallocated | Total | ||||||||||||||||||||||||||
Four-Family | Four-Family | Home | Other | and Land | Loans | ||||||||||||||||||||||||||||
Owner | Non-Owner | Properties | Development | ||||||||||||||||||||||||||||||
Occupied | Occupied | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 85,217 | $ | 273,683 | $ | 95,613 | $ | 30,442 | $ | 80,327 | $ | 3,057 | $ | 49,135 | $ | 617,474 | |||||||||||||||||
Charge-offs | — | (363,842 | ) | (23,921 | ) | — | — | — | — | (387,763 | ) | ||||||||||||||||||||||
Recoveries | — | 3,740 | — | — | — | — | — | 3,740 | |||||||||||||||||||||||||
Provision | (4,654 | ) | 562,003 | 9,251 | (8,077 | ) | (49,522 | ) | 974 | (9,975 | ) | 500,000 | |||||||||||||||||||||
Ending Balance | $ | 80,563 | $ | 475,584 | $ | 80,943 | $ | 22,365 | $ | 30,805 | $ | 4,031 | $ | 39,160 | $ | 733,451 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 201,267 | $ | 488 | $ | — | $ | — | $ | — | $ | — | $ | 201,755 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 80,563 | $ | 274,317 | $ | 80,455 | $ | 22,365 | $ | 30,805 | $ | 4,031 | $ | 39,160 | $ | 531,696 | |||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Financing receivables: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 28,607,668 | $ | 17,480,953 | $ | 1,785,854 | $ | 2,783,794 | $ | 3,911,156 | $ | 1,612,477 | $ | 56,181,902 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 436,317 | $ | 1,635,383 | $ | 105,940 | $ | 213,099 | $ | 370,411 | $ | — | $ | 2,761,150 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 27,780,213 | $ | 15,845,570 | $ | 1,679,914 | $ | 2,570,695 | $ | 3,540,745 | $ | 1,612,477 | $ | 53,029,614 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 391,138 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 391,138 | |||||||||||||||||||
As of September 30, 2012 | |||||||||||||||||||||||||||||||||
One-to | One-to | Mobile | Secured by | Construction | Other | Unallocated | Total | ||||||||||||||||||||||||||
Four-Family | Four-Family | Home | Other | and Land | Loans | ||||||||||||||||||||||||||||
Owner | Non-Owner | Properties | Development | ||||||||||||||||||||||||||||||
Occupied | Occupied | ||||||||||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 64,547 | $ | 382,023 | $ | 52,719 | $ | 25,702 | $ | 91,135 | $ | 3,907 | $ | 45,256 | $ | 665,289 | |||||||||||||||||
Charge-offs | (72,815 | ) | (175,000 | ) | — | — | — | — | — | (247,815 | ) | ||||||||||||||||||||||
Recoveries | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Provision | 93,485 | 66,660 | 42,894 | 4,740 | (10,808 | ) | (850 | ) | 3,879 | 200,000 | |||||||||||||||||||||||
Ending Balance | $ | 85,217 | $ | 273,683 | $ | 95,613 | $ | 30,442 | $ | 80,327 | $ | 3,057 | $ | 49,135 | $ | 617,474 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 30,901 | $ | 36,517 | $ | — | $ | — | $ | — | $ | — | $ | 67,418 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 85,217 | $ | 242,782 | $ | 59,096 | $ | 30,442 | $ | 80,327 | $ | 3,057 | $ | 49,135 | $ | 550,056 | |||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Financing receivables: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 28,270,045 | $ | 17,855,304 | $ | 2,068,672 | $ | 2,613,025 | $ | 3,262,452 | $ | 1,222,824 | $ | 55,292,322 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 437,872 | $ | 1,577,271 | $ | 152,256 | $ | 216,000 | $ | — | $ | — | $ | 2,383,399 | |||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 27,434,223 | $ | 16,278,033 | $ | 1,916,416 | $ | 2,397,025 | $ | 3,262,452 | $ | 1,222,824 | $ | 52,510,973 | |||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 397,950 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 397,950 | |||||||||||||||||||
Summary of Loan Portfolio Quality Indicators by Loan Class Recorded Investment | ' | ||||||||||||||||||||||||||||||||
The following tables are a summary of the loan portfolio quality indicators by loan class recorded investment as of September 30, 2013 and September 30, 2012: | |||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
One-to | One-to | Home | Mobile | Secured | Construction | ||||||||||||||||||||||||||||
Four-Family | Four-Family | Equity | Home | by | and Land | ||||||||||||||||||||||||||||
Owner | Non-Owner | Other | Development | ||||||||||||||||||||||||||||||
Occupied | Occupied | Properties | |||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 25,536,497 | $ | 15,291,094 | $ | 2,243,716 | $ | 1,655,013 | $ | 2,570,695 | $ | 3,540,745 | |||||||||||||||||||||
Special Mention | — | — | — | — | — | — | |||||||||||||||||||||||||||
Substandard | 827,455 | 1,845,206 | — | 130,841 | 213,099 | 370,411 | |||||||||||||||||||||||||||
Doubtful | — | 344,653 | — | — | — | — | |||||||||||||||||||||||||||
$ | 26,363,952 | $ | 17,480,953 | $ | 2,243,716 | $ | 1,785,854 | $ | 2,783,794 | $ | 3,911,156 | ||||||||||||||||||||||
Secured | Savings | Totals | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 1,603,318 | $ | 9,159 | $ | 52,450,238 | |||||||||||||||||||||||||||
Special Mention | — | — | — | ||||||||||||||||||||||||||||||
Substandard | — | — | 3,387,011 | ||||||||||||||||||||||||||||||
Doubtful | — | — | 344,653 | ||||||||||||||||||||||||||||||
$ | 1,603,318 | $ | 9,159 | $ | 56,181,902 | ||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||
One-to | One-to | Home | Mobile | Secured | Construction | ||||||||||||||||||||||||||||
Four-Family | Four-Family | Equity | Home | by | and Land | ||||||||||||||||||||||||||||
Owner | Non-Owner | Other | Development | ||||||||||||||||||||||||||||||
Occupied | Occupied | Properties | |||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 25,261,976 | $ | 15,904,215 | $ | 2,172,247 | $ | 1,814,197 | $ | 2,397,025 | $ | 2,820,472 | |||||||||||||||||||||
Special Mention | — | — | — | 74,743 | — | — | |||||||||||||||||||||||||||
Substandard | 835,822 | 1,951,089 | — | 179,732 | — | 441,980 | |||||||||||||||||||||||||||
Doubtful | — | — | — | — | 216,000 | — | |||||||||||||||||||||||||||
$ | 26,097,798 | $ | 17,855,304 | $ | 2,172,247 | $ | 2,068,672 | $ | 2,613,025 | $ | 3,262,452 | ||||||||||||||||||||||
Secured | Savings | Totals | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 1,212,534 | $ | 10,290 | $ | 51,592,956 | |||||||||||||||||||||||||||
Special Mention | — | — | 74,743 | ||||||||||||||||||||||||||||||
Substandard | — | — | 3,408,623 | ||||||||||||||||||||||||||||||
Doubtful | — | — | 216,000 | ||||||||||||||||||||||||||||||
$ | 1,212,534 | $ | 10,290 | $ | 55,292,322 | ||||||||||||||||||||||||||||
Loan Portfolio Delinquencies by Loan Class | ' | ||||||||||||||||||||||||||||||||
The following tables set forth certain information with respect to our loan portfolio delinquencies by loan class and amount as of September 30, 2013, and September 30, 2012: | |||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | Greater | Total Past | Current | Total | Recorded | |||||||||||||||||||||||||||
Days Past | Days Past | Than 90 | Due | Financing | Investment > | ||||||||||||||||||||||||||||
Due | Due | Days | Receivables | 90 Days and | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | — | $ | — | $ | 690,975 | $ | 690,975 | $ | 25,672,977 | $ | 26,363,952 | $ | — | |||||||||||||||||||
One-to four-family non-owner occupied | — | — | 1,635,383 | 1,635,383 | 15,845,570 | 17,480,953 | — | ||||||||||||||||||||||||||
Home equity | — | — | — | — | 2,243,716 | 2,243,716 | — | ||||||||||||||||||||||||||
Mobile home | 73,774 | — | — | 73,774 | 1,712,080 | 1,785,854 | — | ||||||||||||||||||||||||||
Secured by other properties | — | — | — | — | 2,783,794 | 2,783,794 | — | ||||||||||||||||||||||||||
Construction and land development | — | — | — | — | 3,911,156 | 3,911,156 | — | ||||||||||||||||||||||||||
Total real estate loans | 73,774 | — | 2,326,358 | 2,400,132 | 52,169,293 | 54,569,425 | — | ||||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||
Secured commercial | — | — | — | — | 1,603,318 | 1,603,318 | — | ||||||||||||||||||||||||||
Savings accounts | — | — | — | — | 9,159 | 9,159 | — | ||||||||||||||||||||||||||
Total other loans | — | — | — | — | 1,612,477 | 1,612,477 | — | ||||||||||||||||||||||||||
Total loans | $ | 73,774 | $ | — | $ | 2,326,358 | $ | 2,400,132 | $ | 53,781,770 | $ | 56,181,902 | $ | — | |||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | Greater | Total Past | Current | Total | Recorded | |||||||||||||||||||||||||||
Days Past | Days Past | Than 90 | Due | Financing | Investment > | ||||||||||||||||||||||||||||
Due | Due | Days | Receivables | 90 Days and | |||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | — | $ | — | $ | 835,822 | $ | 835,822 | $ | 25,261,976 | $ | 26,097,798 | $ | — | |||||||||||||||||||
One-to four-family non-owner occupied | 228,229 | — | 721,392 | 949,621 | 16,905,683 | 17,855,304 | — | ||||||||||||||||||||||||||
Home equity | — | — | — | — | 2,172,247 | 2,172,247 | — | ||||||||||||||||||||||||||
Mobile home | 46,927 | — | 103,541 | 150,468 | 1,918,204 | 2,068,672 | — | ||||||||||||||||||||||||||
Secured by other properties | — | — | 216,000 | 216,000 | 2,397,025 | 2,613,025 | — | ||||||||||||||||||||||||||
Construction and land development | — | — | — | — | 3,262,452 | 3,262,452 | — | ||||||||||||||||||||||||||
Total real estate loans | 275,156 | — | 1,876,755 | 2,151,911 | 51,917,587 | 54,069,498 | — | ||||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||
Secured commercial | — | — | — | — | 1,212,534 | 1,212,534 | — | ||||||||||||||||||||||||||
Savings accounts | — | — | — | — | 10,290 | 10,290 | — | ||||||||||||||||||||||||||
Total other loans | — | — | — | — | 1,222,824 | 1,222,824 | — | ||||||||||||||||||||||||||
Total loans | $ | 275,156 | $ | — | $ | 1,876,755 | $ | 2,151,911 | $ | 53,140,411 | $ | 55,292,322 | $ | — | |||||||||||||||||||
Summary of Non-Accrual Loans | ' | ||||||||||||||||||||||||||||||||
The following table is a summary of the non-accrual loans by loan class as of: | |||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | 690,975 | $ | 835,822 | |||||||||||||||||||||||||||||
One-to four-family non-owner occupied | 1,635,383 | 721,392 | |||||||||||||||||||||||||||||||
Home equity | — | — | |||||||||||||||||||||||||||||||
Mobile home | 59,554 | 103,541 | |||||||||||||||||||||||||||||||
Secured by other properties | — | 216,000 | |||||||||||||||||||||||||||||||
Construction and land development | — | — | |||||||||||||||||||||||||||||||
Total real estate loans | 2,385,912 | 1,876,755 | |||||||||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||
Secured commercial | — | — | |||||||||||||||||||||||||||||||
Savings accounts | — | — | |||||||||||||||||||||||||||||||
Total other loans | — | — | |||||||||||||||||||||||||||||||
Total loans | $ | 2,385,912 | $ | 1,876,755 | |||||||||||||||||||||||||||||
Summary of Impaired Loans by Class of Loans | ' | ||||||||||||||||||||||||||||||||
The following tables are a summary of impaired loans by class as of September 30, 2013 and September 30, 2012: | |||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | 904,113 | $ | 827,455 | $ | — | $ | 904,113 | $ | 31,184 | |||||||||||||||||||||||
One-to four-family non-owner occupied | 609,362 | 507,227 | — | 609,362 | 13,288 | ||||||||||||||||||||||||||||
Secured by other properties | 226,434 | 213,099 | — | 226,434 | 684 | ||||||||||||||||||||||||||||
Construction and land development | 370,411 | 370,411 | — | 370,411 | 20,043 | ||||||||||||||||||||||||||||
Mobile homes | 59,627 | 59,554 | — | 59,627 | 4,078 | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
One-to four-family non-owner occupied | $ | 1,217,512 | $ | 1,128,156 | $ | 201,267 | $ | 1,217,512 | $ | 21,255 | |||||||||||||||||||||||
Mobile home | 46,508 | 46,386 | 488 | 46,508 | 3,097 | ||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | 904,113 | $ | 827,455 | $ | — | $ | 904,113 | $ | 31,184 | |||||||||||||||||||||||
One-to four-family non-owner occupied | 1,867,709 | 1,635,383 | 201,267 | 1,867,709 | 34,543 | ||||||||||||||||||||||||||||
Secured by other properties | 226,434 | 213,099 | — | 226,434 | 684 | ||||||||||||||||||||||||||||
Construction and land development | 370,411 | 370,411 | — | 370,411 | 20,043 | ||||||||||||||||||||||||||||
Mobile home | 106,135 | 105,940 | 488 | 106,135 | 7,175 | ||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | 877,758 | $ | 835,822 | $ | — | $ | 877,758 | $ | 25,376 | |||||||||||||||||||||||
One-to four-family non-owner occupied | 896,218 | 721,392 | — | 896,218 | 15,792 | ||||||||||||||||||||||||||||
Secured by other properties | 227,819 | 216,000 | — | 225,834 | — | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
One-to four-family non-owner occupied | $ | 856,752 | $ | 855,879 | $ | 30,901 | $ | 856,752 | $ | 47,446 | |||||||||||||||||||||||
Mobile home | 165,267 | 152,256 | 36,517 | 165,267 | 9,561 | ||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | $ | 877,758 | $ | 835,822 | $ | — | $ | 877,758 | $ | 25,376 | |||||||||||||||||||||||
One-to four-family non-owner occupied | 1,752,970 | 1,577,271 | 30,901 | 1,752,970 | 63,238 | ||||||||||||||||||||||||||||
Secured by other properties | 227,819 | 216,000 | — | 227,819 | — | ||||||||||||||||||||||||||||
Mobile home | 165,267 | 152,256 | 36,517 | 165,267 | 9,561 | ||||||||||||||||||||||||||||
Summary of Impaired Loans That Were Modified Due to Troubled Debt Restructuring by Class | ' | ||||||||||||||||||||||||||||||||
The following table is a summary of impaired loans that were modified due to a troubled debt restructuring by class as of September 30, 2013 and September 30, 2012: | |||||||||||||||||||||||||||||||||
Modifications for the year ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||
contracts | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||||
Investments | Investments | ||||||||||||||||||||||||||||||||
Troubled Debt Restructuring | |||||||||||||||||||||||||||||||||
Construction and land development | 1 | $ | 370,411 | $ | 370,411 | ||||||||||||||||||||||||||||
Mobile home | 1 | 59,627 | 59,627 | ||||||||||||||||||||||||||||||
Recorded Investment | |||||||||||||||||||||||||||||||||
Troubled Debt Restructuring that subsequently defaulted | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | 1 | $ | 67,000 | ||||||||||||||||||||||||||||||
Modifications for the year ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||
contracts | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||||
Investments | Investments | ||||||||||||||||||||||||||||||||
Troubled Debt Restructuring | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | 1 | $ | 151,932 | $ | 151,932 | ||||||||||||||||||||||||||||
One-to four-family non-owner occupied | 5 | 856,752 | 825,851 | ||||||||||||||||||||||||||||||
Secured by other properties | 1 | 227,819 | 227,819 | ||||||||||||||||||||||||||||||
Mobile home | 1 | 48,715 | 46,198 | ||||||||||||||||||||||||||||||
Recorded Investment | |||||||||||||||||||||||||||||||||
Troubled Debt Restructuring that subsequently defaulted | |||||||||||||||||||||||||||||||||
One-to four-family owner occupied | 1 | $ | 151,932 |
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Premises and Equipment | ' | ||||||||||||
Premises and equipment at September 30, 2013 and 2012, were as follows: | |||||||||||||
2013 | 2012 | Depreciable | |||||||||||
Lives | |||||||||||||
Cost | |||||||||||||
Land | $ | 1,142,089 | $ | 1,142,089 | - | ||||||||
Buildings and land improvements | 2,031,589 | 2,031,589 | 10-50 yrs | ||||||||||
Furniture, fixtures, and equipment | 518,026 | 467,949 | 3-7 yrs | ||||||||||
Total | 3,691,704 | 3,641,627 | |||||||||||
Less: accumulated depreciation | (536,642 | ) | (404,632 | ) | |||||||||
$ | 3,155,062 | $ | 3,236,995 | ||||||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Advances Outstanding from Federal Home Loan Bank ("FHLB") | ' | ||||||||||||||||||
The Company has advances outstanding from the Federal Home Loan Bank (“FHLB”). A schedule of the borrowings is as follows: | |||||||||||||||||||
Advance | Rate | Maturity | September 30, | September 30, | |||||||||||||||
Amount | Date | 2013 | 2012 | ||||||||||||||||
$ | 1,000,000 | 4.235 | % | 7/31/17 | $ | 1,000,000 | $ | 1,000,000 | |||||||||||
1,000,000 | 4.01 | % | 8/21/17 | 1,000,000 | 1,000,000 | ||||||||||||||
1,500,000 | 3.227 | % | 11/24/17 | 1,500,000 | 1,500,000 | ||||||||||||||
1,500,000 | 3.4 | % | 11/27/17 | 1,500,000 | 1,500,000 | ||||||||||||||
1,000,000 | 2.599 | % | 10/2/18 | 1,000,000 | 1,000,000 | ||||||||||||||
1,000,000 | 2.6 | % | 7/2/18 | 1,000,000 | 1,000,000 | ||||||||||||||
1,000,000 | 3.05 | % | 7/3/18 | 1,000,000 | 1,000,000 | ||||||||||||||
$ | 8,000,000 | $ | 8,000,000 | ||||||||||||||||
Scheduled Maturities of FHLB Advances | ' | ||||||||||||||||||
At September 30, 2013, the scheduled maturities of the FHLB advances are as follows: | |||||||||||||||||||
2014 | $ | — | |||||||||||||||||
2015 | — | ||||||||||||||||||
2016 | — | ||||||||||||||||||
2017 | 2,000,000 | ||||||||||||||||||
2018 | 5,000,000 | ||||||||||||||||||
Thereafter | 1,000,000 | ||||||||||||||||||
$ | 8,000,000 | ||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Income Tax Provision Reflected in Statements of Income | ' | ||||||||
The income tax provision reflected in the statements of income consisted of the following components for the years ended September 30, 2013 and 2012: | |||||||||
2013 | 2012 | ||||||||
Income tax expense | |||||||||
Current tax expense | |||||||||
Federal | $ | 139,077 | $ | 166,554 | |||||
State | 34,118 | 53,381 | |||||||
Total current | 173,195 | 219,935 | |||||||
Deferred tax expense (benefit) | |||||||||
Federal | 8,834 | (105,141 | ) | ||||||
State | (1,302 | ) | (367 | ) | |||||
Total deferred | 7,532 | (105,508 | ) | ||||||
Total income tax expense | $ | 180,727 | $ | 114,427 | |||||
Reconciliation of Tax Computed at Federal Statutory Tax Rate | ' | ||||||||
A reconciliation of tax computed at the Federal statutory tax rate of 34% to the actual tax expense for the years ended September 30, 2013 and 2012, is as follows: | |||||||||
2013 | 2012 | ||||||||
Tax at Federal statutory rate | $ | 149,987 | $ | 498,725 | |||||
Tax effect of: | |||||||||
Nontaxable gain on business combination | — | (347,505 | ) | ||||||
Tax exempt income | (3,712 | ) | (16,605 | ) | |||||
Graduated rates | 13,546 | (55,181 | ) | ||||||
State income taxes, net of federal benefit | 20,906 | 34,993 | |||||||
Income tax expense | $ | 180,727 | $ | 114,427 | |||||
Components of Net Deferred Tax Asset (Liability) | ' | ||||||||
The components of the net deferred tax asset (liability) at September 30, 2013 and 2012 were as follows: | |||||||||
2013 | 2012 | ||||||||
Deferred income tax assets: | |||||||||
Nonaccrual interest | $ | 99,334 | $ | 63,315 | |||||
Loans yield adjustment | 11,291 | 17,827 | |||||||
Certificate of deposit yield adjustment | — | 8,750 | |||||||
Core deposit intangible | 4,494 | — | |||||||
ESOP Plan funding | — | 7,053 | |||||||
Stock Option Plan | 14,866 | — | |||||||
Deferred compensation | — | 3,223 | |||||||
Allowance for loan losses | 289,346 | 243,593 | |||||||
Foreclosed real estate provision | — | 87,579 | |||||||
419,331 | 431,340 | ||||||||
Deferred income tax liabilities: | |||||||||
Net unrealized gain on securities | 50,639 | 134,819 | |||||||
Core deposit intangible | — | 2,667 | |||||||
Certificate of deposit yield adjustment | 6,668 | — | |||||||
Accumulated depreciation | 74,278 | 82,755 | |||||||
131,585 | 220,241 | ||||||||
Net deferred income tax asset (liability) | $ | 287,746 | $ | 211,099 | |||||
Employee_Stock_Ownership_Plan_
Employee Stock Ownership Plan (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Summary of Employee Stock Ownership Plan Shares | ' | ||||||||
A summary of ESOP shares is as follows: | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Shares committed for release | 20,527 | 16,525 | |||||||
Unearned shares | 19,498 | 23,500 | |||||||
Total ESOP shares | 40,025 | 40,025 | |||||||
Fair value of unearned shares | $ | 389,960 | $ | 399,500 | |||||
Stock_Option_Plan_Tables
Stock Option Plan (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Summary of Stock Option Plan | ' | ||||||||
A summary of the Stock Option Plan year ended September 30, 2013: | |||||||||
Number of | Weighted Average | ||||||||
Shares | Exercise | ||||||||
Price | |||||||||
Outstanding at September 30, 2012 | 37,760 | $ | 14.1 | ||||||
Granted | 37,760 | $ | 14.1 | ||||||
Outstanding at September 30, 2013 | 37,760 | $ | 14.1 | ||||||
Options Exercisable at September 30, 2013 | 7,552 | $ | 14.1 | ||||||
Stock_Repurchases_Tables
Stock Repurchases (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Information in Connection with Repurchases of Shares of Common Stock | ' | ||||||||||||||||
The following table sets forth information in connection with repurchases of the Company’s shares of common stock during the period listed. | |||||||||||||||||
Period | Total | Average | Total Number of | Maximum | |||||||||||||
Number of | Price | Shares | Number of | ||||||||||||||
Shares | Paid per | Purchased as | Shares That May | ||||||||||||||
Purchased | Share | Part of Publicly | Yet Be Purchased | ||||||||||||||
Announced Plans | Under the Plan | ||||||||||||||||
or Programs | |||||||||||||||||
September 1-30, 2012 | 22,800 | $ | 17.07 | 22,800 | 17,200 | ||||||||||||
October 1-31, 2012 | 6,000 | 17.05 | 28,800 | 11,200 | |||||||||||||
November 1-30, 2012 | 1,800 | 17.1 | 30,600 | 9,400 | |||||||||||||
December 1-31, 2012 | — | — | 30,600 | 9,400 | |||||||||||||
January 1-31, 2013 | — | — | 30,600 | 9,400 | |||||||||||||
February 1-28, 2013 | — | — | 30,600 | 9,400 |
Regulatory_Capital_Requirement1
Regulatory Capital Requirements (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Actual and Required Capital Amounts and Ratios of Company and Bank | ' | ||||||||||||||||||||||||
The actual and required capital amounts and ratios of the Company and the Bank as of September 30, 2013 and 2012, were as follows (dollars in thousands): | |||||||||||||||||||||||||
Actual | For Capital | To Be Well | |||||||||||||||||||||||
Adequacy Purposes | Capitalized under | ||||||||||||||||||||||||
the Prompt | |||||||||||||||||||||||||
Corrective Action | |||||||||||||||||||||||||
Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of September 30, 2013: | |||||||||||||||||||||||||
Fairmount Bancorp, Inc. | |||||||||||||||||||||||||
Total Risk-based Capital (to risk-weighted assets) | 13,420 | 31.99 | % | 3,373 | ³8.0 | % | N/A | N/A | |||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | 12,893 | 30.73 | % | 1,686 | ³4.0 | % | N/A | N/A | |||||||||||||||||
Tier 1 Capital (to adjusted total assets) | 12,893 | 16.75 | % | 3,080 | ³4.0 | % | N/A | N/A | |||||||||||||||||
Tangible Capital (to tangible assets) | 12,893 | 16.75 | % | 1,155 | ³1.5 | % | N/A | N/A | |||||||||||||||||
Fairmount Bank | |||||||||||||||||||||||||
Total Risk-based Capital (to risk-weighted assets) | 11,824 | 28.24 | % | 3,366 | ³8.0 | % | 4,169 | ³10.0 | % | ||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | 11,298 | 26.98 | % | 1,683 | ³4.0 | % | 2,501 | ³6.0 | % | ||||||||||||||||
Tier 1 Capital (to adjusted total assets) | 11,298 | 14.7 | % | 3,074 | ³4.0 | % | 3,943 | ³5.0 | % | ||||||||||||||||
Tangible Capital (to tangible assets) | 11,298 | 14.7 | % | 1,153 | ³1.5 | % | N/A | N/A | |||||||||||||||||
As of September 30, 2012: | |||||||||||||||||||||||||
Fairmount Bancorp, Inc. | |||||||||||||||||||||||||
Total Risk-based Capital (to risk-weighted assets) | 13,171 | 31.53 | % | 3,342 | ³8.0 | % | N/A | N/A | |||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | 12,648 | 30.27 | % | 1,671 | ³4.0 | % | N/A | N/A | |||||||||||||||||
Tier 1 Capital (to adjusted total assets) | 12,648 | 16.01 | % | 3,160 | ³4.0 | % | N/A | N/A | |||||||||||||||||
Tangible Capital (to tangible assets) | 12,648 | 16.01 | % | 1,185 | ³1.5 | % | N/A | N/A | |||||||||||||||||
Fairmount Bank | |||||||||||||||||||||||||
Total Risk-based Capital (to risk-weighted assets) | 11,353 | 27.23 | % | 3,335 | ³8.0 | % | 4,169 | ³10.0 | % | ||||||||||||||||
Tier 1 Capital (to risk-weighted assets) | 10,831 | 25.98 | % | 1,668 | ³4.0 | % | 2,501 | ³6.0 | % | ||||||||||||||||
Tier 1 Capital (to adjusted total assets) | 10,831 | 13.73 | % | 3,154 | ³4.0 | % | 3,943 | ³5.0 | % | ||||||||||||||||
Tangible Capital (to tangible assets) | 10,831 | 13.73 | % | 1,183 | ³1.5 | % | N/A | N/A | |||||||||||||||||
Presentation of reconciliation of Company's consolidated equity | ' | ||||||||||||||||||||||||
The following table presents a reconciliation of the Company’s consolidated equity as determined using U.S. GAAP and the Bank’s regulatory capital amounts: | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Consolidated equity GAAP equity | $ | 13,003 | $ | 12,855 | |||||||||||||||||||||
Consolidated equity in excess of Bank equity | (1,594 | ) | (1776 | ) | |||||||||||||||||||||
Bank GAAP equity | 11,409 | 11,079 | |||||||||||||||||||||||
Core deposit intangible | (33 | ) | (41 | ) | |||||||||||||||||||||
Accumulated other comprehensive (income) loss, net of tax | (78 | ) | (207 | ) | |||||||||||||||||||||
Total tangible, leverage and core (tier 1) capital | 11,298 | 10,831 | |||||||||||||||||||||||
Qualifying allowance for loan losses | 526 | 522 | |||||||||||||||||||||||
Total risk-based capital | $ | 11,824 | $ | 11,353 | |||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Summary of Financial Assets and Liabilities Measured at Fair Value | ' | ||||||||||||||||||||
The following table presents a summary of financial assets and liabilities measured at fair value at September 30, 2013 and September 30, 2012: | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||||
Losses | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
Mortgage-backed securities invested in Government Agencies | $ | — | $ | 4,021,365 | $ | — | $ | 4,021,365 | $ | — | |||||||||||
Collateralized mortgage obligations invested in Government Agencies | 529,739 | 529,739 | — | ||||||||||||||||||
State and Municipal Securities | 1,240,621 | 1,240,621 | |||||||||||||||||||
Impaired loans | — | — | 972,787 | 972,787 | — | ||||||||||||||||
Foreclosed assets | 20,000 | 20,000 | $ | 16,781 | |||||||||||||||||
September 30, 2012 | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
Mortgage-backed securities invested in Government Agencies | $ | — | $ | 5,979,683 | $ | — | $ | 5,979,633 | $ | — | |||||||||||
Collaterialized mortgage obligations invested in Government Agencies | — | 1,823,892 | — | 1,823,892 | — | ||||||||||||||||
Impaired loans | — | — | 940,717 | 940,717 | — | ||||||||||||||||
Foreclosed assets | — | 295,750 | 295,750 | — | |||||||||||||||||
Fair Value Measurements for Certain Financial Assets Measured at Fair Value on Non-recurring Basis | ' | ||||||||||||||||||||
The following table presents quantitative information about Level 3 Fair Value Measurements for certain financial assets measured at fair value on a non-recurring basis for September 30, 2013 and September 30, 2012: | |||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements for | |||||||||||||||||||||
September 30, 2013 and September 30, 2012 | |||||||||||||||||||||
Valuation Techniques | Unobservable Input | Range | |||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | Discounted appraised value | Selling costs | 6-12% | ||||||||||||||||||
Foreclosed assets | Discounted appraised value | Selling costs | 6-12% | ||||||||||||||||||
Reconciliation of Beginning and Ending Balances for Level 3 Assets | ' | ||||||||||||||||||||
The following table presents a reconciliation of the beginning and ending balances for Level 3 assets; | |||||||||||||||||||||
Impaired Loans | Foreclosed Assets | ||||||||||||||||||||
Balance, September 30, 2011 | 717,648 | 884,000 | |||||||||||||||||||
Purchases, settlements and charge-offs | (230,000 | ) | (588,250 | ) | |||||||||||||||||
Transfers in and/or out of Level 3 | 453,069 | — | |||||||||||||||||||
Balance, September 30, 2012 | 940,717 | 295,750 | |||||||||||||||||||
Purchases, settlements and charge-offs | (294,140 | ) | (295,750 | ) | |||||||||||||||||
Transfers in and/or out of Level 3 | 326,210 | 20,000 | |||||||||||||||||||
Balance, September 30, 2013 | $ | 972,787 | $ | 295,750 | |||||||||||||||||
Estimated Fair Values of Financial Instruments | ' | ||||||||||||||||||||
The estimated fair values of the Company’s financial instruments were as follows: | |||||||||||||||||||||
Fair Value Measurements at September 30, 2013 Using | |||||||||||||||||||||
Carrying | Quoted | Significant | Significant | Fair | |||||||||||||||||
Value | Prices in | Other | Unobservable | Value | |||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||
Market for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 3,851 | $ | 3,851 | $ | — | $ | — | $ | 3,851 | |||||||||||
Certificates of deposit | 3,784 | 3,784 | — | — | 3,784 | ||||||||||||||||
Securities available for sale | 5,792 | — | 5,792 | — | 5,792 | ||||||||||||||||
Securities held to maturity | 3,756 | — | 3,603 | — | 3,603 | ||||||||||||||||
Federal Home Loan Bank stock | 454 | — | 454 | — | 454 | ||||||||||||||||
Loans receivable, net | 55,375 | — | 55,058 | 973 | 56,031 | ||||||||||||||||
Foreclosed real estate | 20 | — | — | 20 | 20 | ||||||||||||||||
Accrued interest receivable | 233 | — | 233 | — | 233 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 55,930 | — | 56,178 | — | 56,178 | ||||||||||||||||
Federal Home Loan Bank advances | 8,000 | — | 8,698 | — | 8,698 | ||||||||||||||||
Accrued interest payable | 43 | — | 43 | — | 43 | ||||||||||||||||
Off-Balance sheet financial instruments | — | — | — | — | |||||||||||||||||
Fair Value Measurements at September 30, 2012 Using | |||||||||||||||||||||
Carrying | Quoted | Significant | Significant | Fair | |||||||||||||||||
Value | Prices in | Other | Unobservable | Value | |||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||
Market for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 4,363 | $ | 4,363 | $ | — | $ | — | $ | 4,363 | |||||||||||
Securities available for sale | 3,532 | 3,532 | — | — | 3,532 | ||||||||||||||||
Securities held to maturity | 7,804 | — | 7,804 | — | 7,804 | ||||||||||||||||
Federal Home Loan Bank stock | 3,637 | — | 3,804 | — | 3,804 | ||||||||||||||||
Loans receivable, net | 480 | — | 480 | — | 480 | ||||||||||||||||
Foreclosed real estate | 54,650 | — | 54,580 | 941 | 55,521 | ||||||||||||||||
Accrued interest receivable | 296 | — | — | 296 | 296 | ||||||||||||||||
Financial liabilities: | 290 | — | 290 | — | 290 | ||||||||||||||||
Deposits | 58,026 | — | 58,064 | — | 58,064 | ||||||||||||||||
Federal Home Loan Bank advances | 8,000 | — | 8,987 | — | 8,987 | ||||||||||||||||
Accrued interest payable | 43 | — | 43 | — | 43 | ||||||||||||||||
Off-Balance sheet financial instruments | — | — | — | — | — | ||||||||||||||||
Loans Payable | ' | ||||||||||||||||||||
Estimated Fair Values of Financial Instruments | ' | ||||||||||||||||||||
Loan commitments representing off-balance sheet risk at September 30, 2013 and 2012 were as follows: | |||||||||||||||||||||
Contract or Notional Amount | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Mortgage loan commitments-fixed rate (3.00% - 7.75%) | $ | — | $ | 850,500 | |||||||||||||||||
Unused lines of credit | 3,686,945 | 1,725,628 | |||||||||||||||||||
Available home equity lines of credit | 1,845,383 | 2,187,617 | |||||||||||||||||||
Standby letters of credit | 121,466 | 216,997 | |||||||||||||||||||
$ | 5,653,794 | $ | 4,980,742 | ||||||||||||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Computation of Basic and Dilutive Earnings per Share | ' | ||||||||
Basic earnings per share excludes dilution and is computed by dividing net income by the basic weighted average number of common shares outstanding during the period. Dilutive earnings per share reflects the potential dilution that could occur if stock options were exercised and is computed by dividing net income by the dilutive weighted average number of common shares outstanding during the period. | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Income before extraordinary item | $ | 257,470 | $ | 326,292 | |||||
Extraordinary item, gain on business combination | — | 1,022,074 | |||||||
Net income | $ | 257,470 | $ | 1,348,366 | |||||
Weighted average number of shares used in: | |||||||||
Basic earnings per share | 445,643 | 472,278 | |||||||
Dilutive common stock equivalents: | |||||||||
Stock options | 11,139 | 6,441 | |||||||
Dilutive earnings per share | 456,782 | 478,719 | |||||||
Basic and dilutive earnings per common share: | |||||||||
Income before extraordinary item, basic | $ | 0.58 | $ | 0.69 | |||||
Extraordinary item, gain on business combination, basic | — | 2.17 | |||||||
Net income, basic | $ | 0.58 | $ | 2.86 | |||||
Income before extraordinary item, dilutive | $ | 0.56 | $ | 0.68 | |||||
Extraordinary item, gain on business combination, dilutive | — | 2.14 | |||||||
Net income, dilutive | $ | 0.56 | $ | 2.82 | |||||
Parent_Company_Only_Financial_1
Parent Company Only Financial Statements (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Summary of Condensed Balance Sheet | ' | ||||||||
CONDENSED BALANCE SHEET | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Assets: | |||||||||
Cash and due from bank | $ | 221,881 | $ | 378,404 | |||||
Certificates of deposit | 1,030,436 | 1,025,167 | |||||||
Investment in bank subsidiary | 11,408,505 | 11,079,179 | |||||||
Loans receivable | 324,704 | 368,549 | |||||||
Other assets | 26,953 | 28,740 | |||||||
Total assets | $ | 13,012,479 | $ | 12,880,039 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Liabilities: | |||||||||
Accounts payable | 9,250 | 24,849 | |||||||
Total liabilities | 9,250 | 24,849 | |||||||
Stockholders’ Equity | |||||||||
Preferred stock, $0.01 par value; authorized 1,000,000; none issue | — | — | |||||||
Common stock, $0.01 par value; authorized 4,000,000; 500,314 issued; 477,514 and 477,514 shares outstanding at September 30, 2013 and 2012, respectively | 5,003 | 5,003 | |||||||
Additional paid in capital | 4,040,748 | 3,854,869 | |||||||
Unearned common stock held by: | |||||||||
Employee Stock Ownership Plan | (209,736 | ) | (251,607 | ) | |||||
Recognition and Retention Plan | (245,145 | ) | (162,271 | ) | |||||
Retained earnings | 9,334,634 | 9,077,164 | |||||||
Accumulated other comprehensive income | 77,725 | 206,929 | |||||||
Total stockholders’ equity | 13,003,229 | 12,855,190 | |||||||
Total liabilities and stockholders’ equity | $ | 13,012,479 | $ | 12,880,039 | |||||
Summary of Operations | ' | ||||||||
CONDENSED STATEMENT OF OPERATIONS | |||||||||
Year Ended | Year Ended | ||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Interest income on loans | $ | 16,873 | $ | 18,910 | |||||
Interest and dividends on investments | 5,722 | 10,273 | |||||||
Total income | 22,595 | 29,183 | |||||||
Operating expenses | 97,036 | 111,563 | |||||||
Loss before equity in net income of bank subsidiary | (74,441 | ) | (82,380 | ) | |||||
Income tax benefits | 25,310 | 28,009 | |||||||
Net loss before equity in net income of bank subsidiary | (49,131 | ) | (54,371 | ) | |||||
Equity in net income of bank subsidiary | 306,601 | 1,402,737 | |||||||
Net income | $ | 257,470 | $ | 1,348,366 | |||||
Summary Cash Flows | ' | ||||||||
CONDENSED STATEMENT OF CASH FLOWS | |||||||||
Year Ended | Year Ended | ||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Cash flows from operating activities: | |||||||||
Net loss | $ | (49,131 | ) | $ | (54,371 | ) | |||
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | |||||||||
Equity in net income of subsidiary | 306,601 | 1,402,737 | |||||||
Compensation cost on allocated ESOP shares | 71,676 | 59,750 | |||||||
Compensation cost on allocated RRP shares and stock options | 81,177 | — | |||||||
(Increase) decrease in other assets | 1,787 | 9,602 | |||||||
Increase (decrease) in other liabilities | (15,599 | ) | 17,349 | ||||||
Net cash provided (used) by operating activities | 396,511 | 1,435,067 | |||||||
Cash flow from investing activities: | |||||||||
(Increase) decrease in loans | 43,845 | 49,510 | |||||||
Investment in bank subsidiary | (458,530 | ) | (1,382,009 | ) | |||||
Net cash provided (used) by investing activities | (414,685 | ) | (1,332,499 | ) | |||||
Cash flows from financing activities: | |||||||||
Proceeds from issuance of common stock, net of costs | — | 351,573 | |||||||
Net increase in interest-bearing deposits | (5,269 | ) | (8,051 | ) | |||||
Repurchase of common stock | (133,080 | ) | (389,240 | ) | |||||
Net cash provided (used) by financing activities | (138,349 | ) | (45,718 | ) | |||||
Net increase (decrease) in cash and cash equivalents | (156,523 | ) | 56,850 | ||||||
Cash and cash equivalents, beginning balance | 378,404 | 321,554 | |||||||
Cash and cash equivalents, ending balance | $ | 221,881 | $ | 378,404 | |||||
Significant_Accounting_Policie2
Significant Accounting Policies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||
Oct. 31, 2011 | Jun. 30, 2010 | Jun. 02, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 12, 2011 | |
Fullerton | ||||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Shares of common stock converted through sale and issuance | ' | ' | 444,038 | ' | ' | ' |
Conversion price per share | ' | $10 | $10 | ' | ' | $14.10 |
Proceeds from sale of common stock | ' | ' | $3,742,000 | ' | ' | $452,000 |
Net of offering expenses | ' | ' | 699,000 | ' | ' | 341,000 |
Percentage of net proceeds of offering | ' | ' | 50.00% | ' | ' | ' |
Amount of net proceeds of offering | ' | ' | 1,900,000 | ' | ' | ' |
Percentage of issued and outstanding shares of common stock of the Bank | ' | ' | 100.00% | ' | ' | ' |
Percentage of shares subscribed | 8.00% | 8.00% | 8.00% | ' | ' | ' |
Shares of common stock sold in offering | 4,502 | 35,523 | 35,523 | ' | ' | ' |
Common stock issued and sold | ' | ' | ' | ' | ' | 56,276 |
Federal Home Loan Bank stock, at cost | ' | ' | ' | 453,700 | 479,700 | ' |
Number of days to send borrower a late notice | ' | ' | ' | '15 days | ' | ' |
Number of days to send borrower a letter reminding | ' | ' | ' | '30 days | ' | ' |
Advertising costs | ' | ' | ' | 1,746 | 13,687 | ' |
Deposits in other financial institutions | ' | ' | ' | 2,750,000 | 3,512,000 | ' |
Insured amount by securities investor protection corporation | ' | ' | ' | ' | 500,000 | ' |
Minimum balance in deposit account required | ' | ' | ' | $100,000 | $100,000 | ' |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 1 Months Ended | 1 Months Ended | 9 Months Ended | |
Jun. 02, 2010 | Jun. 30, 2010 | Oct. 12, 2011 | Sep. 30, 2013 | |
Fullerton | Fullerton | |||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Common stock issued and sold | ' | ' | $56,276 | ' |
Selling price of common shares | $10 | $10 | $14.10 | ' |
Proceeds from sale of common stock | 3,742,000 | ' | 452,000 | ' |
Net proceeds of offering expense | 699,000 | ' | 341,000 | ' |
Increase (decrease) in goodwill from acquisition | ' | ' | ' | ($1,022,074) |
Carrying_Value_of_Fullertons_A
Carrying Value of Fullerton's Assets and Liabilities Adjusted to Reflect Fair Value (Detail) (Fullerton, USD $) | Oct. 12, 2011 |
Fullerton | ' |
Assets | ' |
Cash and cash equivalents | $4,224,279 |
Securities available for sale | 827,139 |
Loans receivable | 2,414,712 |
Federal Home Loan Bank stock, at cost | 15,300 |
Premises and equipment | 887,503 |
Other assets | 174,579 |
Total assets acquired | 8,543,512 |
Liabilities | ' |
Deposits | 7,333,130 |
Other liabilities | 77,427 |
Total liabilities assumed | $7,410,557 |
Amortized_Cost_and_Estimated_M
Amortized Cost and Estimated Market Value of Securities Classified as Available for Sale and Held to Maturity (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule Of Marketable Securities [Line Items] | ' | ' |
Securities Available for sale, Amortized Cost | $5,663,360 | $7,461,826 |
Securities Available for Sale, Gross Unrealized Gains | 166,298 | 350,447 |
Securities Available for Sale, Gross Unrealized Losses | 37,933 | 8,698 |
Securities Available for sale, Fair Value | 5,791,725 | 7,803,575 |
Securities Held to Maturity, Amortized Cost | 3,756,238 | 3,636,972 |
Securities Held to Maturity, Gross Unrealized Gains | ' | 166,926 |
Securities Held to Maturity, Gross Unrealized Losses | 158,526 | ' |
Securities Held to Maturity, Fair Value | 3,602,703 | 3,803,898 |
U.S. Government and Federal Agency Obligations | ' | ' |
Schedule Of Marketable Securities [Line Items] | ' | ' |
Securities Held to Maturity, Amortized Cost | 3,756,238 | 1,999,145 |
Securities Held to Maturity, Gross Unrealized Gains | 4,991 | 11,784 |
Securities Held to Maturity, Gross Unrealized Losses | 158,526 | ' |
Securities Held to Maturity, Fair Value | 3,602,703 | 2,010,929 |
State and Municipal Securities | ' | ' |
Schedule Of Marketable Securities [Line Items] | ' | ' |
Securities Available for sale, Amortized Cost | 1,273,145 | ' |
Securities Available for Sale, Gross Unrealized Losses | 32,524 | ' |
Securities Available for sale, Fair Value | 1,240,621 | ' |
Securities Held to Maturity, Amortized Cost | ' | 1,637,827 |
Securities Held to Maturity, Gross Unrealized Gains | ' | 155,142 |
Securities Held to Maturity, Fair Value | ' | 1,792,969 |
Residential Mortgage-Backed Securities | ' | ' |
Schedule Of Marketable Securities [Line Items] | ' | ' |
Securities Available for sale, Amortized Cost | 3,855,067 | 5,629,774 |
Securities Available for Sale, Gross Unrealized Gains | 166,298 | 349,909 |
Securities Available for sale, Fair Value | 4,021,365 | 5,979,683 |
Collateralized Mortgage Obligations | ' | ' |
Schedule Of Marketable Securities [Line Items] | ' | ' |
Securities Available for sale, Amortized Cost | 535,148 | 1,832,052 |
Securities Available for Sale, Gross Unrealized Gains | ' | 538 |
Securities Available for Sale, Gross Unrealized Losses | 5,409 | 8,698 |
Securities Available for sale, Fair Value | $529,739 | $1,823,892 |
Amortized_Cost_and_Estimated_M1
Amortized Cost and Estimated Market Value of Securities, by Contractual Maturity (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities Available for sale, Due in one year or less, Amortized Cost | ' | ' |
Securities Available for sale, Due after one year through five years, Amortized Cost | 550,169 | ' |
Securities Available for sale, Due five years to ten years, Amortized Cost | 490,391 | ' |
Securities Available for sale, Due after ten years, Amortized Cost | 4,622,800 | ' |
Securities Available for sale, Amortized Cost | 5,663,360 | ' |
Securities Available for sale, Due in one year or less, Fair Value | ' | ' |
Securities Available for sale, Due after one year through five years, Fair Value | 549,536 | ' |
Securities Available for sale, Due five years to ten years, Fair Value | 475,290 | ' |
Securities Available for sale, Due after ten years, Fair Value | 4,766,899 | ' |
Securities Available for sale, Fair Value | 5,791,725 | ' |
Securities Held to Maturity, Due in one year or less, Amortized Cost | ' | ' |
Securities Held to Maturity, Due after one year through five years, Amortized Cost | 1,740,850 | ' |
Securities Held to Maturity, Due five years to ten years, Amortized Cost | 2,015,388 | ' |
Securities Held to Maturity, Due after ten years, Amortized Cost | ' | ' |
Securities Held to Maturity, Amortized Cost | 3,756,238 | 3,636,972 |
Securities Held to Maturity, Due in one year or less, Fair Value | ' | ' |
Securities Held to Maturity, Due after one year through five years, Fair Value | 1,724,203 | ' |
Securities Held to Maturity, Due five years to ten years, Fair Value | 1,878,500 | ' |
Securities Held to Maturity, Due after ten years, Fair Value | ' | ' |
Securities Held to Maturity, Fair Value | $3,602,703 | $3,803,898 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Investment | Investment | |
Proceeds from sale of available for sale securities | $1,753,845 | $189,692 |
Realized gross gain on sale | 116,480 | 896 |
Number of securities with gross unrealized losses investments | 8 | 2 |
Total gross unrealized losses | $196,459 | $8,698 |
Securities_with_Gross_Unrealiz
Securities with Gross Unrealized Losses Aggregated by Investment Category and Length of Time That Individual Securities Have Been in Continuous Loss Position (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Fair Value | $1,240,621 | $1,435,900 |
Months Gross Unrealized Losses | 32,524 | 8,698 |
Securities Available-for-Sale, Fair Value, 12 Months or Greater | 529,739 | ' |
, 2012 Greater Gross Unrealized Losses | 5,409 | ' |
Securities Available-for-Sale, Fair Value, Total | 1,770,360 | 1,435,900 |
Gross Unrealized Losses | 37,933 | 8,698 |
Securities Held-to-Maturity, Fair Value, Less than 12 Months | 2,849,720 | ' |
Securities Held-to-Maturity, Gross Unrealized Loss, Less than 12 Months | 158,526 | ' |
Securities Held-to-Maturity, Fair Value, 12 Months or Greater | ' | ' |
Securities Held-to-Maturity, Gross Unrealized Loss, 12 Months or Greater | ' | ' |
Securities Held-to-Maturity, Fair Value, Total | 2,849,720 | ' |
Securities Held-to-Maturity, Total Gross Unrealized Loss, Total | 158,526 | ' |
U.S. Government and Federal Agency Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Securities Held-to-Maturity, Fair Value, Less than 12 Months | 2,849,720 | ' |
Securities Held-to-Maturity, Gross Unrealized Loss, Less than 12 Months | 158,526 | ' |
Securities Held-to-Maturity, Fair Value, 12 Months or Greater | ' | ' |
Securities Held-to-Maturity, Gross Unrealized Loss, 12 Months or Greater | ' | ' |
Securities Held-to-Maturity, Fair Value, Total | 2,849,720 | ' |
Securities Held-to-Maturity, Total Gross Unrealized Loss, Total | 158,526 | ' |
State and Municipal Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Fair Value | 1,240,621 | ' |
Months Gross Unrealized Losses | 32,524 | ' |
Securities Available-for-Sale, Fair Value, Total | 1,240,621 | ' |
Gross Unrealized Losses | 32,524 | ' |
Securities Held-to-Maturity, Fair Value, 12 Months or Greater | ' | ' |
Securities Held-to-Maturity, Gross Unrealized Loss, 12 Months or Greater | ' | ' |
Collateralized Mortgage Obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Fair Value | ' | 1,435,900 |
Months Gross Unrealized Losses | ' | 8,698 |
Securities Available-for-Sale, Fair Value, 12 Months or Greater | 529,739 | ' |
, 2012 Greater Gross Unrealized Losses | 5,409 | ' |
Securities Available-for-Sale, Fair Value, Total | 529,739 | 1,435,900 |
Gross Unrealized Losses | $5,409 | $8,698 |
Principal_Categories_of_Loan_P
Principal Categories of Loan Portfolio (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | $56,181,902 | $55,292,322 |
Unamortized premiums and loan fees | 250,880 | 319,713 |
Unearned income on loans | -323,966 | -344,450 |
Allowance for loan and lease losses | -733,451 | -617,474 |
Total loans, net | 55,375,365 | 54,650,111 |
Real Estate | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 54,569,425 | 54,069,498 |
Other Loans Receivable | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 1,612,477 | 1,222,824 |
One To Four Family Owner Occupied | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 26,363,952 | 26,097,798 |
One To Four Family Owner Occupied | Real Estate | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 26,363,952 | 26,097,798 |
One To Four Family Non Owner Occupied | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 17,480,953 | 17,855,304 |
One To Four Family Non Owner Occupied | Real Estate | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 17,480,953 | 17,855,304 |
Home Equity | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 2,243,716 | 2,172,247 |
Home Equity | Real Estate | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 2,243,716 | 2,172,247 |
Mobile Home | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 1,785,854 | 2,068,672 |
Mobile Home | Real Estate | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 1,785,854 | 2,068,672 |
Secured By Other Properties | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 2,783,794 | 2,613,025 |
Secured By Other Properties | Real Estate | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 2,783,794 | 2,613,025 |
Construction and Land Development | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 3,911,156 | 3,262,452 |
Construction and Land Development | Real Estate | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 3,911,156 | 3,262,452 |
Secured Commercial | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 1,603,318 | 1,212,534 |
Secured Commercial | Other Loans Receivable | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 1,603,318 | 1,212,534 |
Savings | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | 9,159 | 10,290 |
Savings | Other Loans Receivable | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total loans | $9,159 | $10,290 |
Loans_and_Allowance_for_Loan_a2
Loans and Allowance for Loan and Lease Losses - Additional Information (Detail) (USD $) | 1 Months Ended | |||
31-May-09 | Oct. 31, 2004 | Sep. 30, 2013 | Sep. 30, 2012 | |
Loans And Leases [Line Items] | ' | ' | ' | ' |
Total loans | ' | ' | $56,181,902 | $55,292,322 |
Unamortized loan premiums | ' | ' | 10,721 | 13,187 |
Amount paid to purchase mortgage loans | 1,109,768 | 2,126,620 | ' | ' |
Carrying amounts of purchased mortgage loans | ' | ' | 556,213 | 657,951 |
Average yield of mortgage loans receivable | 6.08% | 6.00% | ' | ' |
Mobile Home Loan | ' | ' | ' | ' |
Loans And Leases [Line Items] | ' | ' | ' | ' |
Total loans | ' | ' | 1,785,854 | 2,068,672 |
Unamortized loan premiums | ' | ' | 0 | 42,762 |
Prepaid loan origination fees | ' | ' | $211,177 | $261,337 |
Loans_and_Remaining_Contractua
Loans and Remaining Contractual Maturities (Detail) (USD $) | Sep. 30, 2013 |
Loans And Leases [Line Items] | ' |
One year or less | $3,095,533 |
After one year to five years | 7,595,647 |
After five years to ten years | 17,055,071 |
After ten years to fifteen years | 7,862,923 |
After fifteen years | 20,572,728 |
Contractual maturities, Total | $56,181,902 |
Loans_to_Officers_Directors_an
Loans to Officers, Directors and Related Affiliates (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Loans And Leases [Line Items] | ' | ' |
Balance, beginning of year | $485,531 | $513,789 |
Additions | 214,902 | ' |
Repayments | -27,113 | -28,258 |
Balance, end of year | $673,320 | $485,531 |
Balance_of_Allowance_for_Loan_
Balance of Allowance for Loan Losses (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Beginning Balance | $617,474 | ' |
Charge-offs | -16,781 | 0 |
Ending Balance | 733,451 | 617,474 |
Ending balance: individually evaluated for impairment | 2,761,150 | 2,383,399 |
Ending balance: collectively evaluated for impairment | 53,029,614 | 52,510,973 |
Ending balance: loans acquired with deteriorated credit quality | 391,138 | 397,950 |
Financing receivables: Ending balance | 56,181,902 | 55,292,322 |
Loans Receivable | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Beginning Balance | 617,474 | 665,289 |
Charge-offs | -387,763 | -247,815 |
Recoveries | 3,740 | ' |
Provision | 500,000 | 200,000 |
Ending Balance | 733,451 | 617,474 |
Ending balance: individually evaluated for impairment | 201,755 | 67,418 |
Ending balance: collectively evaluated for impairment | 531,696 | 550,056 |
Financing receivables: Ending balance | 56,181,902 | 55,292,322 |
One To Four Family Owner Occupied | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Ending balance: individually evaluated for impairment | 436,317 | 437,872 |
Ending balance: collectively evaluated for impairment | 27,780,213 | 27,434,223 |
Ending balance: loans acquired with deteriorated credit quality | 391,138 | 397,950 |
Financing receivables: Ending balance | 26,363,952 | 26,097,798 |
One To Four Family Owner Occupied | Loans Receivable | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Beginning Balance | 85,217 | 64,547 |
Charge-offs | ' | -72,815 |
Provision | -4,654 | 93,485 |
Ending Balance | 80,563 | 85,217 |
Ending balance: collectively evaluated for impairment | 80,563 | 85,217 |
Financing receivables: Ending balance | 28,607,668 | 28,270,045 |
One To Four Family Non Owner Occupied | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Ending balance: individually evaluated for impairment | 1,635,383 | 1,577,271 |
Ending balance: collectively evaluated for impairment | 15,845,570 | 16,278,033 |
Financing receivables: Ending balance | 17,480,953 | 17,855,304 |
One To Four Family Non Owner Occupied | Loans Receivable | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Beginning Balance | 273,683 | 382,023 |
Charge-offs | -363,842 | -175,000 |
Recoveries | 3,740 | ' |
Provision | 562,003 | 66,660 |
Ending Balance | 475,584 | 273,683 |
Ending balance: individually evaluated for impairment | 201,267 | 30,901 |
Ending balance: collectively evaluated for impairment | 274,317 | 242,782 |
Financing receivables: Ending balance | 17,480,953 | 17,855,304 |
Mobile Home | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Ending balance: individually evaluated for impairment | 105,940 | 152,256 |
Ending balance: collectively evaluated for impairment | 1,679,914 | 1,916,416 |
Financing receivables: Ending balance | 1,785,854 | 2,068,672 |
Mobile Home | Loans Receivable | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Beginning Balance | 95,613 | 52,719 |
Charge-offs | -23,921 | ' |
Provision | 9,251 | 42,894 |
Ending Balance | 80,943 | 95,613 |
Ending balance: individually evaluated for impairment | 488 | 36,517 |
Ending balance: collectively evaluated for impairment | 80,455 | 59,096 |
Financing receivables: Ending balance | 1,785,854 | 2,068,672 |
Secured By Other Properties | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Ending balance: individually evaluated for impairment | 213,099 | 216,000 |
Ending balance: collectively evaluated for impairment | 2,570,695 | 2,397,025 |
Financing receivables: Ending balance | 2,783,794 | 2,613,025 |
Secured By Other Properties | Loans Receivable | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Beginning Balance | 30,442 | 25,702 |
Provision | -8,077 | 4,740 |
Ending Balance | 22,365 | 30,442 |
Ending balance: collectively evaluated for impairment | 22,365 | 30,442 |
Financing receivables: Ending balance | 2,783,794 | 2,613,025 |
Construction and Land Development | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Ending balance: individually evaluated for impairment | 370,411 | ' |
Ending balance: collectively evaluated for impairment | 3,540,745 | 3,262,452 |
Financing receivables: Ending balance | 3,911,156 | 3,262,452 |
Construction and Land Development | Loans Receivable | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Beginning Balance | 80,327 | 91,135 |
Provision | -49,522 | -10,808 |
Ending Balance | 30,805 | 80,327 |
Ending balance: collectively evaluated for impairment | 30,805 | 80,327 |
Financing receivables: Ending balance | 3,911,156 | 3,262,452 |
Other Loans Receivable | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Ending balance: collectively evaluated for impairment | 1,612,477 | 1,222,824 |
Financing receivables: Ending balance | 1,612,477 | 1,222,824 |
Other Loans Receivable | Loans Receivable | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Beginning Balance | 3,057 | 3,907 |
Provision | 974 | -850 |
Ending Balance | 4,031 | 3,057 |
Ending balance: collectively evaluated for impairment | 4,031 | 3,057 |
Financing receivables: Ending balance | 1,612,477 | 1,222,824 |
Unallocated | Loans Receivable | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Beginning Balance | 49,135 | 45,256 |
Provision | -9,975 | 3,879 |
Ending Balance | 39,160 | 49,135 |
Ending balance: collectively evaluated for impairment | $39,160 | $49,135 |
Summary_of_Loan_Portfolio_Qual
Summary of Loan Portfolio Quality Indicators by Loan Class Recorded Investment (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | $56,181,902 | $55,292,322 |
Pass | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 52,450,238 | 51,592,956 |
Special Mention | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | ' | 74,743 |
Substandard | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 3,387,011 | 3,408,623 |
Doubtful | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 344,653 | 216,000 |
One To Four Family Owner Occupied | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 26,363,952 | 26,097,798 |
One To Four Family Owner Occupied | Pass | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 25,536,497 | 25,261,976 |
One To Four Family Owner Occupied | Substandard | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 827,455 | 835,822 |
One To Four Family Non Owner Occupied | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 17,480,953 | 17,855,304 |
One To Four Family Non Owner Occupied | Pass | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 15,291,094 | 15,904,215 |
One To Four Family Non Owner Occupied | Substandard | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 1,845,206 | 1,951,089 |
One To Four Family Non Owner Occupied | Doubtful | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 344,653 | ' |
Home Equity | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 2,243,716 | 2,172,247 |
Home Equity | Pass | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 2,243,716 | 2,172,247 |
Mobile Home | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 1,785,854 | 2,068,672 |
Mobile Home | Pass | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 1,655,013 | 1,814,197 |
Mobile Home | Special Mention | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | ' | 74,743 |
Mobile Home | Substandard | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 130,841 | 179,732 |
Secured By Other Properties | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 2,783,794 | 2,613,025 |
Secured By Other Properties | Pass | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 2,570,695 | 2,397,025 |
Secured By Other Properties | Substandard | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 213,099 | ' |
Secured By Other Properties | Doubtful | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | ' | 216,000 |
Construction and Land Development | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 3,911,156 | 3,262,452 |
Construction and Land Development | Pass | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 3,540,745 | 2,820,472 |
Construction and Land Development | Substandard | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 370,411 | 441,980 |
Secured Commercial | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 1,603,318 | 1,212,534 |
Secured Commercial | Pass | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 1,603,318 | 1,212,534 |
Savings | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | 9,159 | 10,290 |
Savings | Pass | ' | ' |
Summary of Allowances for Credit Loss and Related Financing Receivables [Line Items] | ' | ' |
Total loans | $9,159 | $10,290 |
Credit_Quality_of_Financing_Re2
Credit Quality of Financing Receivables and Allowance for Loan Losses - Additional Information (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Loan | Loan | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Notice for late payment of loan due after | '15 days | ' |
Letter reminding the borrower of the delinquency for Loan due after | '30 days | ' |
Final demand for payment of the delinquency | '90 days | ' |
Summary report of all loans due after | '30 days | ' |
Loans placed on non-accrual status delinquency due after | '90 days | ' |
Maximum duration for Loans returned to accrual status delinquent | '90 days | ' |
Amount of loans on non-accrual status | 251,798 | 160,495 |
Troubled Debt Restructuring | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 10 | 8 |
Non-accrual Loans | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Number of loans on non-accrual status | 29 | 23 |
One To Four Family Owner Occupied | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Financing Receivable, Modifications, Number of Contracts | ' | 1 |
One To Four Family Owner Occupied | Troubled Debt Restructuring | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 1 | 1 |
Financing Receivable, Modifications, Recorded Investment | 136,481 | 138,035 |
One To Four Family Non Owner Occupied | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Financing Receivable, Modifications, Number of Contracts | ' | 5 |
One To Four Family Non Owner Occupied | Troubled Debt Restructuring | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 5 | 5 |
Financing Receivable, Modifications, Recorded Investment | 783,503 | 855,879 |
Secured By Other Properties | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Financing Receivable, Modifications, Number of Contracts | ' | 1 |
Secured By Other Properties | Troubled Debt Restructuring | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 1 | 1 |
Financing Receivable, Modifications, Recorded Investment | 213,099 | 216,000 |
Construction and Land Development | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 1 | ' |
Construction and Land Development | Troubled Debt Restructuring | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 1 | ' |
Financing Receivable, Modifications, Recorded Investment | 370,411 | ' |
Mobile Home | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 1 | 1 |
Mobile Home | Troubled Debt Restructuring | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Financing Receivable, Modifications, Number of Contracts | 2 | 1 |
Financing Receivable, Modifications, Recorded Investment | 105,940 | 51,313 |
Loan_Portfolio_Delinquencies_b
Loan Portfolio Delinquencies by Loan Class (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
30-59 Days Past Due | $73,774 | $275,156 |
60-89 Days Past Due | ' | ' |
Greater Than 90 Days | 2,326,358 | 1,876,755 |
Total Past Due | 2,400,132 | 2,151,911 |
Current | 53,781,770 | 53,140,411 |
Total Financing Receivables | 56,181,902 | 55,292,322 |
Recorded Investment > 90 Days and Accruing | ' | ' |
One To Four Family Owner Occupied | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Financing Receivables | 26,363,952 | 26,097,798 |
One To Four Family Non Owner Occupied | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Financing Receivables | 17,480,953 | 17,855,304 |
Home Equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Financing Receivables | 2,243,716 | 2,172,247 |
Mobile Home | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Financing Receivables | 1,785,854 | 2,068,672 |
Secured By Other Properties | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Financing Receivables | 2,783,794 | 2,613,025 |
Construction and Land Development | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Financing Receivables | 3,911,156 | 3,262,452 |
Secured Commercial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
60-89 Days Past Due | ' | ' |
Current | 1,603,318 | 1,212,534 |
Total Financing Receivables | 1,603,318 | 1,212,534 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Savings | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
60-89 Days Past Due | ' | ' |
Current | 9,159 | 10,290 |
Total Financing Receivables | 9,159 | 10,290 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Other Loans Receivable | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
60-89 Days Past Due | ' | ' |
Current | 1,612,477 | 1,222,824 |
Total Financing Receivables | 1,612,477 | 1,222,824 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
30-59 Days Past Due | 73,774 | 275,156 |
60-89 Days Past Due | ' | ' |
Greater Than 90 Days | 2,326,358 | 1,876,755 |
Total Past Due | 2,400,132 | 2,151,911 |
Current | 52,169,293 | 51,917,587 |
Total Financing Receivables | 54,569,425 | 54,069,498 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Real Estate | One To Four Family Owner Occupied | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
60-89 Days Past Due | ' | ' |
Greater Than 90 Days | 690,975 | 835,822 |
Total Past Due | 690,975 | 835,822 |
Current | 25,672,977 | 25,261,976 |
Total Financing Receivables | 26,363,952 | 26,097,798 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Real Estate | One To Four Family Non Owner Occupied | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
30-59 Days Past Due | ' | 228,229 |
60-89 Days Past Due | ' | ' |
Greater Than 90 Days | 1,635,383 | 721,392 |
Total Past Due | 1,635,383 | 949,621 |
Current | 15,845,570 | 16,905,683 |
Total Financing Receivables | 17,480,953 | 17,855,304 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Real Estate | Home Equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
60-89 Days Past Due | ' | ' |
Current | 2,243,716 | 2,172,247 |
Total Financing Receivables | 2,243,716 | 2,172,247 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Real Estate | Mobile Home | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
30-59 Days Past Due | 73,774 | 46,927 |
60-89 Days Past Due | ' | ' |
Greater Than 90 Days | ' | 103,541 |
Total Past Due | 73,774 | 150,468 |
Current | 1,712,080 | 1,918,204 |
Total Financing Receivables | 1,785,854 | 2,068,672 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Real Estate | Secured By Other Properties | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
60-89 Days Past Due | ' | ' |
Greater Than 90 Days | ' | 216,000 |
Total Past Due | ' | 216,000 |
Current | 2,783,794 | 2,397,025 |
Total Financing Receivables | 2,783,794 | 2,613,025 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Real Estate | Construction and Land Development | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
60-89 Days Past Due | ' | ' |
Current | 3,911,156 | 3,262,452 |
Total Financing Receivables | 3,911,156 | 3,262,452 |
Recorded Investment > 90 Days and Accruing | ' | ' |
Recorded_Investment_in_Nonaccr
Recorded Investment in Non-accrual Loans (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ' | ' |
Recorded investment in non-accrual loans | $2,385,912 | $1,876,755 |
Real Estate | ' | ' |
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ' | ' |
Recorded investment in non-accrual loans | 2,385,912 | 1,876,755 |
Real Estate | One To Four Family Owner Occupied | ' | ' |
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ' | ' |
Recorded investment in non-accrual loans | 690,975 | 835,822 |
Real Estate | One To Four Family Non Owner Occupied | ' | ' |
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ' | ' |
Recorded investment in non-accrual loans | 1,635,383 | 721,392 |
Real Estate | Mobile Home | ' | ' |
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ' | ' |
Recorded investment in non-accrual loans | 59,554 | 103,541 |
Real Estate | Secured By Other Properties | ' | ' |
Financing Receivable Recorded Investment Nonaccrual Status [Line Items] | ' | ' |
Recorded investment in non-accrual loans | ' | $216,000 |
Summary_of_Impaired_Loans_by_C
Summary of Impaired Loans by Class of Loans (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
One To Four Family Owner Occupied | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment, with no related allowance recorded | $904,113 | $877,758 |
Unpaid Principal Balance, with no related allowance recorded | 827,455 | 835,822 |
Related allowance, with no related allowance | ' | ' |
Average recorded investment, with no related allowance recorded | 904,113 | 877,758 |
Interest Income Recognized, with no related allowance recorded | 31,184 | 25,376 |
Recorded Investment, total | 904,113 | 877,758 |
Unpaid Principal Balance, total | 827,455 | 835,822 |
Average Recorded Investment, total | 904,113 | 877,758 |
Interest Income Recognized, total | 31,184 | 25,376 |
One To Four Family Non Owner Occupied | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment, with no related allowance recorded | 609,362 | 896,218 |
Unpaid Principal Balance, with no related allowance recorded | 507,227 | 721,392 |
Related allowance, with no related allowance | ' | ' |
Average recorded investment, with no related allowance recorded | 609,362 | 896,218 |
Interest Income Recognized, with no related allowance recorded | 13,288 | 15,792 |
Recorded investment, with related allowance recorded | 1,217,512 | 856,752 |
Unpaid Principal Balance, with related allowance recorded | 1,128,156 | 855,879 |
Related Allowance, With Related Allowance | 201,267 | 30,901 |
Average recorded investment, with related allowance recorded | 1,217,512 | 856,752 |
Interest Income Recognized, with related allowance recorded | 21,255 | 47,446 |
Recorded Investment, total | 1,867,709 | 1,752,970 |
Unpaid Principal Balance, total | 1,635,383 | 1,577,271 |
Related Allowance, total | 201,267 | 30,901 |
Average Recorded Investment, total | 1,867,709 | 1,752,970 |
Interest Income Recognized, total | 34,543 | 63,238 |
Secured By Other Properties | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment, with no related allowance recorded | 226,434 | 227,819 |
Unpaid Principal Balance, with no related allowance recorded | 213,099 | 216,000 |
Related allowance, with no related allowance | ' | ' |
Average recorded investment, with no related allowance recorded | 226,434 | 225,834 |
Interest Income Recognized, with no related allowance recorded | 684 | ' |
Recorded Investment, total | 226,434 | 227,819 |
Unpaid Principal Balance, total | 213,099 | 216,000 |
Average Recorded Investment, total | 226,434 | 227,819 |
Interest Income Recognized, total | 684 | ' |
Construction and Land Development | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment, with no related allowance recorded | 370,411 | ' |
Unpaid Principal Balance, with no related allowance recorded | 370,411 | ' |
Related allowance, with no related allowance | ' | ' |
Average recorded investment, with no related allowance recorded | 370,411 | ' |
Interest Income Recognized, with no related allowance recorded | 20,043 | ' |
Recorded Investment, total | 370,411 | ' |
Unpaid Principal Balance, total | 370,411 | ' |
Average Recorded Investment, total | 370,411 | ' |
Interest Income Recognized, total | 20,043 | ' |
Mobile Home | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment, with no related allowance recorded | 59,627 | ' |
Unpaid Principal Balance, with no related allowance recorded | 59,554 | ' |
Related allowance, with no related allowance | ' | ' |
Average recorded investment, with no related allowance recorded | 59,627 | ' |
Interest Income Recognized, with no related allowance recorded | 4,078 | ' |
Recorded investment, with related allowance recorded | 46,508 | 165,267 |
Unpaid Principal Balance, with related allowance recorded | 46,386 | 152,256 |
Related Allowance, With Related Allowance | 488 | 36,517 |
Average recorded investment, with related allowance recorded | 46,508 | 165,267 |
Interest Income Recognized, with related allowance recorded | 3,097 | 9,561 |
Recorded Investment, total | 106,135 | 165,267 |
Unpaid Principal Balance, total | 105,940 | 152,256 |
Related Allowance, total | 488 | 36,517 |
Average Recorded Investment, total | 106,135 | 165,267 |
Interest Income Recognized, total | $7,175 | $9,561 |
Summary_of_Impaired_Loans_That
Summary of Impaired Loans That Were Modified Due to Troubled Debt Restructuring by Class (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Contract | Contract | |
One To Four Family Owner Occupied | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | ' | 1 |
Pre-Modification Outstanding Recorded Investments | ' | $151,932 |
Post-Modification Outstanding Recorded Investments | ' | 151,932 |
Number of contracts subsequently defaulted | 1 | 1 |
Recorded Investment subsequently defaulted | 67,000 | 151,932 |
One To Four Family Non Owner Occupied | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | ' | 5 |
Pre-Modification Outstanding Recorded Investments | ' | 856,752 |
Post-Modification Outstanding Recorded Investments | ' | 825,851 |
Mobile Home | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | 1 | 1 |
Pre-Modification Outstanding Recorded Investments | 59,627 | 48,715 |
Post-Modification Outstanding Recorded Investments | 59,627 | 46,198 |
Secured By Other Properties | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | ' | 1 |
Pre-Modification Outstanding Recorded Investments | ' | 227,819 |
Post-Modification Outstanding Recorded Investments | ' | 227,819 |
Construction and Land Development | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | 1 | ' |
Pre-Modification Outstanding Recorded Investments | 370,411 | ' |
Post-Modification Outstanding Recorded Investments | $370,411 | ' |
Premises_and_Equipment_Detail
Premises and Equipment (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Building and Building Improvements | Building and Building Improvements | Furniture Fixture And Equipment | Furniture Fixture And Equipment | Furniture Fixture And Equipment | Furniture Fixture And Equipment | Land | Land | Buildings And Land Improvements | Buildings And Land Improvements | |||
Minimum | Maximum | Minimum | Maximum | |||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property plant and equipment | $3,691,704 | $3,641,627 | ' | ' | $518,026 | $467,949 | ' | ' | $1,142,089 | $1,142,089 | $2,031,589 | $2,031,589 |
Less: accumulated depreciation | -536,642 | -404,632 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premises and equipment, net | $3,155,062 | $3,236,995 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property plant and equipment use full life | ' | ' | '10 years | '50 years | ' | ' | '3 years | '7 years | ' | ' | ' | ' |
Premises_and_Equipment_Additio
Premises and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Property, Plant, and Equipment Disclosure [Line Items] | ' | ' |
Depreciation expense | $132,010 | $123,727 |
Foreclosed_Real_Estate_Additio
Foreclosed Real Estate - Additional Information (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Real Estate [Line Items] | ' | ' |
Foreclosed assets | $20,000 | $295,750 |
Allowances for loan losses | 733,451 | 617,474 |
Disposed of foreclosed assets | 272,027 | 347,846 |
Gain (loss) on disposition of foreclosed assets | -23,723 | 3,842 |
Foreclosed Real Estate | ' | ' |
Real Estate [Line Items] | ' | ' |
Foreclosed assets | 20,000 | 295,750 |
Allowances for loan losses | 16,781 | 0 |
Disposed of foreclosed assets | 295,750 | 347,846 |
Gain (loss) on disposition of foreclosed assets | ($23,723) | ($18,404) |
Deposits_Additional_Informatio
Deposits - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Deposit Liabilities And Borrowed Federal Funds [Line Items] | ' | ' |
Aggregate amount of deposits with balances of $100,000 or more | $15,445,563 | $18,608,689 |
Deposit balances of employees officers, directors and their affiliated interests | 202,179 | 226,814 |
Brokered deposits | $0 | $0 |
Certificates_of_Deposit_and_Re
Certificates of Deposit and Remaining Maturities (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Time Deposits [Line Items] | ' | ' |
Total | $34,442,370 | $37,427,659 |
Certificates of Deposit | ' | ' |
Time Deposits [Line Items] | ' | ' |
2014 | 17,425,755 | ' |
2015 | 8,782,333 | ' |
2016 | 2,751,064 | ' |
2017 | 2,176,707 | ' |
2018 | 3,306,510 | ' |
Total | $34,442,369 | ' |
Advances_Outstanding_from_Fede
Advances Outstanding from Federal Home Loan Bank ("FHLB") (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
7/31/17 | 7/31/17 | 8/21/17 | 8/21/17 | 11/24/17 | 11/24/17 | 11/27/17 | 11/27/17 | 10/2/18 | 10/2/18 | 7/2/18 | 7/2/18 | 7/3/18 | 7/3/18 | Federal Home Loan Bank Advances | Federal Home Loan Bank Advances | Federal Home Loan Bank Advances | Federal Home Loan Bank Advances | Federal Home Loan Bank Advances | Federal Home Loan Bank Advances | Federal Home Loan Bank Advances | |||
7/31/17 | 8/21/17 | 11/24/17 | 11/27/17 | 10/2/18 | 7/2/18 | 7/3/18 | |||||||||||||||||
Schedule of Federal Home Loan Bank Advances and Other Borrowings [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advance Amount | ' | ' | $1,000,000 | ' | $1,000,000 | ' | $1,500,000 | ' | $1,500,000 | ' | $1,000,000 | ' | $1,000,000 | ' | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.24% | 4.01% | 3.23% | 3.40% | 2.60% | 2.60% | 3.05% |
Maturity Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Jul-17 | 21-Aug-17 | 24-Nov-17 | 27-Nov-17 | 2-Oct-18 | 2-Jul-18 | 3-Jul-18 |
Federal Home Loan Bank advances | $8,000,000 | $8,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' |
Borrowings_Additional_Informat
Borrowings - Additional Information (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Borrowings [Line Items] | ' | ' |
Percentage of credit availability of assets | 30.00% | ' |
Collateral amount | $36,900,000 | ' |
Credit availability with a correspondent bank for short term liquidity | 1,500,000 | ' |
Borrowings outstanding | $0 | $0 |
Scheduled_Maturities_of_FHLB_A
Scheduled Maturities of FHLB Advances (Detail) (USD $) | Sep. 30, 2013 |
Debt And Commitments Maturities [Line Items] | ' |
2014 | ' |
2015 | ' |
2016 | ' |
2017 | 2,000,000 |
2018 | 5,000,000 |
Thereafter | 1,000,000 |
FHLB maturities advances, total | $8,000,000 |
Income_Tax_Provision_Reflected
Income Tax Provision Reflected in Statements of Income (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Current tax expense | ' | ' |
Federal | $139,077 | $166,554 |
State | 34,118 | 53,381 |
Total current | 173,195 | 219,935 |
Deferred tax expense (benefit) | ' | ' |
Federal | 8,834 | -105,141 |
State | -1,302 | -367 |
Total deferred | 7,533 | -105,508 |
Income tax expense | $180,727 | $114,427 |
Reconciliation_of_Tax_Computed
Reconciliation of Tax Computed at Federal Statutory Tax Rate (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Reconciliation of Statutory Federal Tax Rate [Line Items] | ' | ' |
Tax at Federal statutory rate | $149,987 | $498,725 |
Tax effect of: | ' | ' |
Nontaxable gain on business combination | ' | -347,505 |
Tax exempt income | -3,712 | -16,605 |
Graduated rates | 13,546 | -55,181 |
State income taxes, net of federal benefit | 20,906 | 34,993 |
Income tax expense | $180,727 | $114,427 |
Components_of_Net_Deferred_Tax
Components of Net Deferred Tax Asset (Liability) (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Deferred income tax assets: | ' | ' |
Nonaccrual interest | $99,334 | $63,315 |
Loans yield adjustment | 11,291 | 17,827 |
Certificate of deposit yield adjustment | ' | 8,750 |
Core deposit intangible | 4,494 | ' |
ESOP Plan funding | ' | 7,053 |
Stock Option Plan | 14,866 | ' |
Deferred compensation | ' | 3,223 |
Allowance for loan losses | 289,346 | 243,593 |
Foreclosed real estate provision | ' | 87,579 |
Deferred Tax Assets, Deferred Income | 419,331 | 431,340 |
Deferred income tax liabilities: | ' | ' |
Net unrealized gain on securities | 50,639 | 134,819 |
Core deposit intangible | ' | 2,667 |
Certificate of deposit yield adjustment | 6,668 | ' |
Accumulated depreciation | 74,278 | 82,755 |
Total Deferred Tax Liabilities | 131,585 | 220,241 |
Net deferred income tax asset (liability) | $287,746 | $211,099 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Income Taxes [Line Items] | ' |
Retained earnings reserve for loan losses for tax purposes | $731,536 |
Liability for uncertain tax positions | 0 |
Interest and penalties on unrecognized tax benefits | 0 |
Fullerton | ' |
Income Taxes [Line Items] | ' |
Remaining net operating loss carryforwards | $335,000 |
Operating loss carryforwards expiration year | '2031 |
Defined_Contribution_Benefit_P1
Defined Contribution Benefit Plan - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2009 | Sep. 30, 2013 | Sep. 30, 2012 | |
Age | |||
Defined Contribution Plan [Line Items] | ' | ' | ' |
Minimum age of emplyees to avail Benefit under defined Contribution Benefit Plan | 21 | ' | ' |
Minimum service provide of employees to avail benefit under Defined Contribution Benefit Plan | '12 months | ' | ' |
Defined Benefit Plan maximum percentage of contribution by company | 4.00% | ' | ' |
Percentage of vesting rights by Participants in deferrals and employer matching contributions | 100.00% | ' | ' |
Additional contribution | ' | $25,510 | $25,481 |
Employee_Stock_Ownership_Plan_1
Employee Stock Ownership Plan - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2011 | Jun. 30, 2010 | Jun. 02, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' | ' | ' |
Borrowed funds under ESOP | $63,478 | $355,230 | ' | ' | ' |
Shares of common stock sold in offering | 4,502 | 35,523 | 35,523 | ' | ' |
Percentage of shares subscribed | 8.00% | 8.00% | 8.00% | ' | ' |
Conversion price per share | ' | $10 | $10 | ' | ' |
Stock issued during period shares with conversion merger | $14.10 | ' | ' | ' | ' |
Term of loan repaid by ESOP | ' | ' | ' | '10 years | ' |
Interest rate on ESOP loan | ' | ' | ' | 3.25% | ' |
Rate of accrued benefits under ESOP | ' | ' | ' | 20.00% | ' |
Compensation expense under ESOP | ' | ' | ' | $71,676 | $59,750 |
Summary_of_Employee_Stock_Owne
Summary of Employee Stock Ownership Plan Shares (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' |
Shares committed for release | 20,527 | 16,525 |
Unearned shares | 19,498 | 23,500 |
Total ESOP shares | 40,025 | 40,025 |
Fair value of unearned shares | $389,960 | $399,500 |
Recognition_and_Retention_Plan1
Recognition and Retention Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Reinsurance Retention Policy [Line Items] | ' | ' |
Maximum rate at which RRP participants will vest in their share awards | 20.00% | ' |
Term period of RRP participants vest in share awards | '5 years | ' |
Compensation expense | $42,568 | $0 |
RRP | ' | ' |
Reinsurance Retention Policy [Line Items] | ' | ' |
Maximum rate at which RRP participants will vest in their share awards | 20.00% | ' |
Shares awarded under the RRP | 15,104 | ' |
Maximum number of shares acquired in Initial Public Offering | 17,761 | ' |
RRP maximum grant percentage, employee director | 25.00% | ' |
RRP maximum grant percentage, non-employee director | 5.00% | ' |
Maximum percentage of shares awarded to non-employee director in aggregate | 30.00% | ' |
Stock_Option_Plan_Additional_I
Stock Option Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Schedule Of Stock Options [Line Items] | ' | ' |
Maximum rate for plan participants to exercise the options | 20.00% | ' |
Vested period of options | '5 years | ' |
Exercise period of options | '10 years | ' |
Number of Grants made | 37,760 | ' |
Compensation expense | $42,568 | $0 |
Employees And Non Employee Directors | ' | ' |
Schedule Of Stock Options [Line Items] | ' | ' |
Number of Grants made | 37,760 | ' |
Stock Option Plans | ' | ' |
Schedule Of Stock Options [Line Items] | ' | ' |
Compensation expense | $37,684 | $0 |
Summary_of_Stock_Option_Plan_D
Summary of Stock Option Plan (Detail) (USD $) | 12 Months Ended |
Sep. 30, 2013 | |
Schedule Of Stock Options [Line Items] | ' |
Outstanding at September 30, 2012 | 37,760 |
Granted | 37,760 |
Outstanding at September 30, 2013 | 37,760 |
Options Exercisable at September 30, 2013 | 7,552 |
Weighted Average Exercise Price at September 30, 2012 | $14.10 |
Weighted Average Exercise Price, Granted | $14.10 |
Weighted Average Exercise Price at September 30, 2013 | $14.10 |
Weighted Average Exercise Price, Options Exercisable at September 30, 2013 | $14.10 |
Stock_Repurchases_Additional_I
Stock Repurchases - Additional Information (Detail) | Oct. 04, 2012 | Sep. 07, 2012 |
Share Repurchases [Line Items] | ' | ' |
Initial number of outstanding common stock Board of Directors authorized to repurchase | 40,000 | 25,000 |
Initial percentage of shares outstanding equal to shares authorized to repurchase | ' | 5.00% |
Percentage of shares outstanding equal to shares authorized to repurchase | 8.00% | ' |
Information_in_Connection_with
Information in Connection with Repurchases of Shares of Common Stock (Detail) (USD $) | 1 Months Ended |
Sep. 30, 2013 | |
September 1 - 30, 2012 | ' |
Share Repurchases [Line Items] | ' |
Total Number of Shares Purchased | 22,800 |
Average Price Paid per Share | $17.07 |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 22,800 |
Maximum Number of Shares That May Yet Be Purchased Under the Plan | 17,200 |
October 1 - 31, 2012 | ' |
Share Repurchases [Line Items] | ' |
Total Number of Shares Purchased | 6,000 |
Average Price Paid per Share | $17.05 |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 28,800 |
Maximum Number of Shares That May Yet Be Purchased Under the Plan | 11,200 |
November 1 - 30, 2012 | ' |
Share Repurchases [Line Items] | ' |
Total Number of Shares Purchased | 1,800 |
Average Price Paid per Share | $17.10 |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 30,600 |
Maximum Number of Shares That May Yet Be Purchased Under the Plan | 9,400 |
December 1 - 31, 2012 | ' |
Share Repurchases [Line Items] | ' |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 30,600 |
Maximum Number of Shares That May Yet Be Purchased Under the Plan | 9,400 |
January 1-31 , 2013 | ' |
Share Repurchases [Line Items] | ' |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 30,600 |
Maximum Number of Shares That May Yet Be Purchased Under the Plan | 9,400 |
February 1-28 , 2013 | ' |
Share Repurchases [Line Items] | ' |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | 30,600 |
Maximum Number of Shares That May Yet Be Purchased Under the Plan | 9,400 |
Deferred_Compensation_Obligati1
Deferred Compensation Obligation - Additional Information (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Jun. 30, 2004 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' |
Minimum Period of service to be attained by president under deferred compensation arrangement | '10 years | ' |
Deferred compensation obligation, amount accrued | ' | $66,237 |
Percentage of interest factor utilized for present value calculations | ' | 5.00% |
Life insurance policy under Deferred Compensation Obligation | ' | $100,000 |
Period for payment of deferred compensation obligation | '2012-07 | ' |
Actual_and_Required_Capital_Am
Actual and Required Capital Amounts and Ratios of Company and Bank (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total Risk-based Capital (to risk-weighted assets), Actual Amount | $11,824 | $11,353 |
Fairmount Bancorp, Inc. | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total Risk-based Capital (to risk-weighted assets), Actual Amount | 13,420,000 | 13,171,000 |
Tier 1 Capital (to risk-weighted assets), Actual Amount | 12,893,000 | 12,648,000 |
Tier 1 Capital (to adjusted total assets), Actual Amount | 12,893,000 | 12,648,000 |
Tangible Capital (to tangible assets), Actual Amount | 12,893,000 | 12,648,000 |
Total Risk-based Capital (to risk-weighted assets), Actual Ratio | 31.99% | 31.53% |
Tier 1 Capital (to risk-weighted assets), Actual Ratio | 30.73% | 30.27% |
Tier 1 Capital (to adjusted total assets), Actual Ratio | 16.75% | 16.01% |
Tangible Capital (to tangible assets), Actual Ratio | 16.75% | 16.01% |
Total Risk-based Capital (to risk-weighted assets), Amount For Capital Adequacy Purposes | 3,373 | 3,342 |
Tier 1 Capital (to risk-weighted assets), Amount For Capital Adequacy Purposes | 1,686 | 1,671 |
Tier 1 Capital (to adjusted total assets), Amount For Capital Adequacy Purposes | 3,080 | 3,160 |
Tangible Capital (to tangible assets), Amount For Capital Adequacy Purposes | 1,155 | 1,185 |
Fairmount Bancorp, Inc. | Minimum | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total Risk-based Capital (to risk-weighted assets), Ratio For Capital Adequacy Purposes | 8.00% | 8.00% |
Tier 1 Capital (to risk-weighted assets), Ratio For Capital Adequacy Purposes | 4.00% | 4.00% |
Tier 1 Capital (to adjusted total assets), Ratio For Capital Adequacy Purposes | 4.00% | 4.00% |
Tangible Capital (to tangible assets), Ratio For Capital Adequacy Purposes | 1.50% | 1.50% |
Tangible Capital (to tangible assets), Ratio Required to be Well Capitalized under the Prompt Corrective Action Provisions | 1.50% | 1.50% |
Fairmount Bank | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total Risk-based Capital (to risk-weighted assets), Actual Amount | 11,824,000 | 11,353,000 |
Tier 1 Capital (to risk-weighted assets), Actual Amount | 11,298,000 | 10,831,000 |
Tier 1 Capital (to adjusted total assets), Actual Amount | 11,298,000 | 10,831,000 |
Tangible Capital (to tangible assets), Actual Amount | 11,298,000 | 10,831,000 |
Total Risk-based Capital (to risk-weighted assets), Actual Ratio | 28.24% | 27.23% |
Tier 1 Capital (to risk-weighted assets), Actual Ratio | 26.98% | 25.98% |
Tier 1 Capital (to adjusted total assets), Actual Ratio | 14.70% | 13.73% |
Tangible Capital (to tangible assets), Actual Ratio | 14.70% | 13.73% |
Total Risk-based Capital (to risk-weighted assets), Amount For Capital Adequacy Purposes | 3,366 | 3,335 |
Tier 1 Capital (to risk-weighted assets), Amount For Capital Adequacy Purposes | 1,683 | 1,668 |
Tier 1 Capital (to adjusted total assets), Amount For Capital Adequacy Purposes | 3,074 | 3,154 |
Tangible Capital (to tangible assets), Amount For Capital Adequacy Purposes | 1,153 | 1,183 |
Fairmount Bank | Minimum | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total Risk-based Capital (to risk-weighted assets), Amount Required to be Well Capitalized under the Prompt Corrective Action Provisions | 4,169 | 4,169 |
Tier 1 Capital (to risk-weighted assets), Amount Required to be Well Capitalized under the Prompt Corrective Action Provisions | 2,501 | 2,501 |
Tier 1 Capital (to adjusted total assets), Amount Required to be Well Capitalized under the Prompt Corrective Action Provisions | $3,943 | $3,943 |
Total Risk-based Capital (to risk-weighted assets), Ratio For Capital Adequacy Purposes | 8.00% | 8.00% |
Tier 1 Capital (to risk-weighted assets), Ratio For Capital Adequacy Purposes | 4.00% | 4.00% |
Tier 1 Capital (to adjusted total assets), Ratio For Capital Adequacy Purposes | 4.00% | 4.00% |
Tangible Capital (to tangible assets), Ratio For Capital Adequacy Purposes | 1.50% | 1.50% |
Total Risk-based Capital (to risk-weighted assets), Ratio Required to be Well Capitalized under the Prompt Corrective Action Provisions | 10.00% | 10.00% |
Tier 1 Capital (to risk-weighted assets), Ratio Required to be Well Capitalized under the Prompt Corrective Action Provisions | 6.00% | 6.00% |
Tier 1 Capital (to adjusted total assets), Ratio Required to be Well Capitalized under the Prompt Corrective Action Provisions | 5.00% | 5.00% |
Tangible Capital (to tangible assets), Ratio Required to be Well Capitalized under the Prompt Corrective Action Provisions | 1.50% | 1.50% |
Presentation_of_Reconciliation
Presentation of Reconciliation of Company's Consolidated Equity (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Consolidated equity GAAP equity | $13,003,229 | $12,855,190 | $11,477,337 |
Consolidated equity in excess of Bank equity | -1,594 | -1,776 | ' |
Bank GAAP equity | 11,409 | 11,079 | ' |
Core deposit intangible | -33 | -41 | ' |
Accumulated other comprehensive (income) loss, net of tax | 77,725 | 206,929 | ' |
Total tangible, leverage and core (tier 1) capital | 11,298 | 10,831 | ' |
Qualifying allowance for loan losses | 526 | 522 | ' |
Total risk-based capital | $11,824 | $11,353 | ' |
Summary_of_Financial_Assets_an
Summary of Financial Assets and Liabilities Measured at Fair Value (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Foreclosed assets | $16,781 | ' |
Level 2 | Mortgage-backed securities invested in Government Agencies | ' | ' |
Securities available for sale | 4,021,365 | 5,979,683 |
Level 2 | Collateralized mortgage obligations invested in Government Agencies | ' | ' |
Securities available for sale | 529,739 | 1,823,892 |
Level 2 | State and Municipal Securities | ' | ' |
Securities available for sale | 1,240,621 | ' |
Level 3 | ' | ' |
Impaired loans | 972,787 | 940,717 |
Foreclosed assets | 20,000 | 295,750 |
Total | ' | ' |
Impaired loans | 972,787 | 940,717 |
Foreclosed assets | 20,000 | 295,750 |
Total | Mortgage-backed securities invested in Government Agencies | ' | ' |
Securities available for sale | 4,021,365 | 5,979,633 |
Total | Collateralized mortgage obligations invested in Government Agencies | ' | ' |
Securities available for sale | 529,739 | 1,823,892 |
Total | State and Municipal Securities | ' | ' |
Securities available for sale | $1,240,621 | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Fair Value Measurements Disclosure [Line Items] | ' | ' |
Financing receivable allowance for credit losses write offs | $16,781 | $0 |
Fair_Value_Measurements_for_Ce
Fair Value Measurements for Certain Financial Assets Measured at Fair Value on Non-recurring Basis (Detail) | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value, Measurement Inputs, Disclosure [Line Items] | ' | ' |
Impaired loans valuation techniques | 'Discounted appraised value | 'Discounted appraised value |
Foreclosed assets valuation techniques | 'Discounted appraised value | 'Discounted appraised value |
Impaired loans unobservable input | 'Selling costs | 'Selling costs |
Foreclosed assets unobservable input | 'Selling costs | 'Selling costs |
Minimum | ' | ' |
Fair Value, Measurement Inputs, Disclosure [Line Items] | ' | ' |
Range of impaired Loans | 6.00% | 6.00% |
Range of foreclosed assets | 6.00% | 6.00% |
Maximum | ' | ' |
Fair Value, Measurement Inputs, Disclosure [Line Items] | ' | ' |
Range of impaired Loans | 12.00% | 12.00% |
Range of foreclosed assets | 12.00% | 12.00% |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Balances for Level 3 Assets (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Impaired Loans | ' | ' |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' |
Beginning Balance | $940,717 | $717,648 |
Purchases, settlements and charge-offs | -294,140 | -230,000 |
Transfers in and/or out of Level 3 | 326,210 | 453,069 |
Ending Balance | 972,787 | 940,717 |
Foreclosed Assets | ' | ' |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' |
Beginning Balance | 295,750 | 884,000 |
Purchases, settlements and charge-offs | -295,750 | -588,250 |
Transfers in and/or out of Level 3 | 20,000 | ' |
Ending Balance | $295,750 | $295,750 |
Estimated_Fair_Values_of_Finan
Estimated Fair Values of Financial Instruments (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Financial assets: | ' | ' |
Securities held to maturity | $3,602,703 | $3,803,898 |
Carrying Value | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 3,851,000 | 4,363,000 |
Certificates of deposit | 3,784,000 | ' |
Securities available for sale | 5,792,000 | 3,532,000 |
Securities held to maturity | 3,756,000 | 7,804,000 |
Federal Home Loan Bank stock | 454,000 | 3,637,000 |
Loans receivable, net | 55,375,000 | 480,000 |
Foreclosed assets | 20,000 | 54,650,000 |
Accrued interest receivable | 233,000 | 296,000 |
Financial liabilities: | ' | ' |
Deposits | 55,930,000 | 58,026,000 |
Federal Home Loan Bank advances | 8,000,000 | 8,000,000 |
Accrued interest payable | 43,000 | 43,000 |
Off-Balance sheet financial instruments | ' | ' |
Level 1 | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 3,851,000 | 4,363,000 |
Certificates of deposit | 3,784,000 | ' |
Securities available for sale | ' | 3,532,000 |
Financial liabilities: | ' | ' |
Off-Balance sheet financial instruments | ' | ' |
Level 2 | ' | ' |
Financial assets: | ' | ' |
Securities available for sale | 5,792,000 | ' |
Securities held to maturity | 3,603,000 | 7,804,000 |
Federal Home Loan Bank stock | 454,000 | 3,804,000 |
Loans receivable, net | 55,058,000 | 480,000 |
Foreclosed assets | ' | 54,580,000 |
Accrued interest receivable | 233,000 | ' |
Financial liabilities: | ' | ' |
Deposits | 56,178,000 | 58,064,000 |
Federal Home Loan Bank advances | 8,698,000 | 8,987,000 |
Accrued interest payable | 43,000 | 43,000 |
Off-Balance sheet financial instruments | ' | ' |
Level 3 | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net | 973,000 | ' |
Foreclosed assets | 20,000 | 941,000 |
Accrued interest receivable | ' | 296,000 |
Financial liabilities: | ' | ' |
Off-Balance sheet financial instruments | ' | ' |
Fair Value | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 3,851,000 | 4,363,000 |
Certificates of deposit | 3,784,000 | ' |
Securities available for sale | 5,792,000 | 3,532,000 |
Securities held to maturity | 3,603,000 | 7,804,000 |
Federal Home Loan Bank stock | 454,000 | 3,804,000 |
Loans receivable, net | 56,031,000 | 480,000 |
Foreclosed assets | 20,000 | 55,521,000 |
Accrued interest receivable | 233,000 | 296,000 |
Financial liabilities: | ' | ' |
Deposits | 56,178,000 | 58,064,000 |
Federal Home Loan Bank advances | 8,698,000 | 8,987,000 |
Accrued interest payable | 43,000 | 43,000 |
Off-Balance sheet financial instruments | ' | ' |
Loan_Commitments_Representing_
Loan Commitments Representing Off-Balance Sheet Risk (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Contract or Notional Amount | $5,653,794 | $4,980,742 |
Mortgage loan commitments-fixed rate (3.00% - 7.75%) | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Contract or Notional Amount | ' | 850,500 |
Unused lines of credit | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Contract or Notional Amount | 3,686,945 | 1,725,628 |
Home Equity | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Contract or Notional Amount | 1,845,383 | 2,187,617 |
Standby Letters of Credit | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Contract or Notional Amount | $121,466 | $216,997 |
Computation_of_Basic_and_Dilut
Computation of Basic and Dilutive Earnings per Share (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Line Items] | ' | ' |
Income before extraordinary item | $257,470 | $326,292 |
Extraordinary item, gain on business combination | ' | 1,022,074 |
Net income | $257,470 | $1,348,366 |
Weighted average number of shares used in: | ' | ' |
Basic earnings per share | 445,643 | 472,278 |
Dilutive common stock equivalents: | ' | ' |
Stock options | 11,139 | 6,441 |
Dilutive earnings per share | 456,782 | 478,719 |
Basic and dilutive earnings per common share: | ' | ' |
Income before extraordinary item, basic | $0.58 | $0.69 |
Extraordinary item, gain on business combination, basic | ' | $2.17 |
Net income, basic | $0.58 | $2.86 |
Income before extraordinary item, dilutive | $0.56 | $0.68 |
Extraordinary item, gain on business combination, dilutive | ' | $2.14 |
Net income, dilutive | $0.56 | $2.82 |
Summary_of_Condensed_Balance_S
Summary of Condensed Balance Sheet (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Assets: | ' | ' | ' |
Cash and due from bank | $850,941 | $513,787 | ' |
Certificates of deposit | 3,783,568 | 3,531,991 | ' |
Total assets | 77,028,149 | 79,043,753 | ' |
Liabilities: | ' | ' | ' |
Total liabilities | 64,024,920 | 66,188,563 | ' |
Stockholders' Equity | ' | ' | ' |
Preferred stock, $0.01 par value; authorized 1,000,000; none issue | ' | ' | ' |
Common stock, $0.01 par value; authorized 4,000,000; 500,314 issued; 477,514 and 477,514 shares outstanding at September 30, 2013 and 2012, respectively | 5,003 | 5,003 | ' |
Additional paid in capital | 4,040,748 | 3,979,972 | ' |
Unearned common stock held by: | ' | ' | ' |
Employee Stock Ownership Plan | -209,736 | -251,607 | ' |
Recognition and Retention Plan | -245,145 | -162,271 | ' |
Retained earnings | 9,334,634 | 9,077,164 | ' |
Accumulated other comprehensive income | 77,725 | 206,929 | ' |
Total stockholders' equity | 13,003,229 | 12,855,190 | 11,477,337 |
Total liabilities and stockholders' equity | 77,028,149 | 79,043,753 | ' |
Fairmount Bancorp, Inc. | ' | ' | ' |
Assets: | ' | ' | ' |
Cash and due from bank | 221,881 | 378,404 | ' |
Certificates of deposit | 1,030,436 | 1,025,167 | ' |
Investment in bank subsidiary | 11,408,505 | 11,079,179 | ' |
Loans receivable | 324,704 | 368,549 | ' |
Other assets | 26,953 | 28,740 | ' |
Total assets | 13,012,479 | 12,880,039 | ' |
Liabilities: | ' | ' | ' |
Accounts payable | 9,250 | 24,849 | ' |
Total liabilities | 9,250 | 24,849 | ' |
Stockholders' Equity | ' | ' | ' |
Preferred stock, $0.01 par value; authorized 1,000,000; none issue | ' | ' | ' |
Common stock, $0.01 par value; authorized 4,000,000; 500,314 issued; 477,514 and 477,514 shares outstanding at September 30, 2013 and 2012, respectively | 5,003 | 5,003 | ' |
Additional paid in capital | 4,040,748 | 3,854,869 | ' |
Unearned common stock held by: | ' | ' | ' |
Employee Stock Ownership Plan | -209,736 | -251,607 | ' |
Recognition and Retention Plan | -245,145 | -162,271 | ' |
Retained earnings | 9,334,634 | 9,077,164 | ' |
Accumulated other comprehensive income | 77,725 | 206,929 | ' |
Total stockholders' equity | 13,003,229 | 12,855,190 | ' |
Total liabilities and stockholders' equity | $13,012,479 | $12,880,039 | ' |
Summary_of_Condensed_Balance_S1
Summary of Condensed Balance Sheet (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 4,000,000 | 4,000,000 |
Common stock, shares issued | 500,314 | 500,314 |
Common stock, shares outstanding | 484,839 | 484,839 |
Fairmount Bancorp, Inc. | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 4,000,000 | 4,000,000 |
Common stock, shares issued | 500,314 | 500,314 |
Common stock, shares outstanding | 477,514 | 477,514 |
Summary_of_Operations_Detail
Summary of Operations (Detail) (USD $) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Interest income on loans | $3,147,659 | $3,319,533 |
Interest and dividends on investments | 270,823 | 394,831 |
Total income | 3,418,482 | 3,714,364 |
Income before income taxes | 438,197 | 440,719 |
Income tax benefits | -180,727 | -114,427 |
Fairmount Bancorp, Inc. | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Interest income on loans | 16,873 | 18,910 |
Interest and dividends on investments | 5,722 | 10,273 |
Total income | 22,595 | 29,183 |
Operating expenses | 97,036 | 111,563 |
Income before income taxes | -74,441 | -82,380 |
Income tax benefits | 25,310 | 28,009 |
Net loss before equity in net income of bank subsidiary | -49,131 | -54,371 |
Equity in net income of bank subsidiary | 306,601 | 1,402,737 |
Net income | $257,470 | $1,348,366 |
Summary_Cash_Flows_Detail
Summary Cash Flows (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Jun. 02, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ' | $257,470 | $1,348,366 |
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | ' | ' | ' |
Compensation cost on allocated RRP shares and stock options | ' | 42,568 | 0 |
Net cash provided (used) by operating activities | ' | 1,267,674 | 625,846 |
Cash flow from investing activities: | ' | ' | ' |
(Increase) decrease in loans | ' | -1,225,254 | 1,322,887 |
Net cash provided (used) by investing activities | ' | 457,806 | -151,433 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of common stock, net of costs | 3,742,000 | ' | ' |
Net increase in interest-bearing deposits | ' | -2,095,955 | -254,806 |
Repurchase of common stock | ' | -133,080 | -389,240 |
Net cash provided (used) by financing activities | ' | -2,237,205 | -2,300,253 |
Net increase (decrease) in cash and cash equivalents | ' | -511,725 | -1,825,840 |
Cash and cash equivalents, beginning balance | ' | 4,363,186 | 6,189,026 |
Cash and cash equivalents, ending balance | ' | 3,851,461 | 4,363,186 |
Fairmount Bancorp, Inc. | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' |
Net loss | ' | -49,131 | -54,371 |
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | ' | ' | ' |
Equity in net income of subsidiary | ' | 306,601 | 1,402,737 |
Compensation cost on allocated ESOP shares | ' | 71,676 | 59,750 |
Compensation cost on allocated RRP shares and stock options | ' | 81,177 | ' |
(Increase) decrease in other assets | ' | 1,787 | 9,602 |
Increase (decrease) in other liabilities | ' | -15,599 | 17,349 |
Net cash provided (used) by operating activities | ' | 396,511 | 1,435,067 |
Cash flow from investing activities: | ' | ' | ' |
(Increase) decrease in loans | ' | 43,845 | 49,510 |
Investment in bank subsidiary | ' | -458,530 | -1,382,009 |
Net cash provided (used) by investing activities | ' | -414,685 | -1,332,499 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of common stock, net of costs | ' | ' | 351,573 |
Net increase in interest-bearing deposits | ' | -5,269 | -8,051 |
Repurchase of common stock | ' | -133,080 | -389,240 |
Net cash provided (used) by financing activities | ' | -138,349 | -45,718 |
Net increase (decrease) in cash and cash equivalents | ' | -156,523 | 56,850 |
Cash and cash equivalents, beginning balance | ' | 378,404 | 321,554 |
Cash and cash equivalents, ending balance | ' | $221,881 | $378,404 |
Parent_Company_Only_Financial_2
Parent Company Only Financial Statements - Additional Information (Detail) (USD $) | 1 Months Ended |
Oct. 13, 2011 | |
Condensed Cash Flow Statements, Captions [Line Items] | ' |
Company provide loan to ESOP | $63,478 |
No. of Common stock acquired from ESOP | 4,502 |