Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Aug. 14, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | Meetinghouse Bancorp, Inc. | |
Entity Central Index Key | 1,543,367 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 668,919 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
ASSETS | ||
Cash and due from banks | $ 3,847 | $ 4,943 |
Federal funds sold | 398 | 942 |
Interest-bearing demand deposits with other banks | 58 | 53 |
Cash and cash equivalents | 4,303 | 5,938 |
Interest-bearing time deposits in other banks | 1,733 | 1,985 |
Investments in available-for-sale securities (at fair value) | 16,540 | 16,638 |
Federal Home Loan Bank stock, at cost | 958 | 754 |
Loans held-for-sale | 7,278 | 2,727 |
Loans, net of allowance for loan losses of $550 as of June 30, 2015 and $506 as of September 30, 2014 | 82,108 | 77,015 |
Premises and equipment | 1,718 | 1,772 |
Investment in real estate | 1,131 | 1,090 |
Cooperative Central Bank deposit | 427 | 427 |
Accrued interest receivable | 301 | 273 |
Other assets | 461 | 544 |
Total assets | 116,958 | 109,163 |
Deposits: | ||
Noninterest-bearing | 18,137 | 14,355 |
Interest-bearing | 78,470 | 73,128 |
Total deposits | 96,607 | 87,483 |
Federal Home Loan Bank advances | 9,524 | 10,953 |
Deferred income tax liability, net | 66 | 58 |
Other liabilities | 287 | 219 |
Total liabilities | $ 106,484 | $ 98,713 |
Stockholders' equity: | ||
Preferred stock, 500,000 shares authorized; none outstanding | ||
Common stock, $.01 par value; 5,000,000 shares authorized; 668,919 and 679,769 shares issued and outstanding at June 30, 2015 and September 30, 2014, respectively | $ 7 | $ 7 |
Additional paid-in capital | 5,784 | 5,903 |
Retained earnings | 5,144 | 5,035 |
Unearned compensation - ESOP (26,715 shares unallocated at June 30, 2015 and 32,439 shares at September 30, 2014, respectively) | (281) | (341) |
Unearned compensation - restricted stock awards | (261) | (221) |
Accumulated other comprehensive income | 81 | 67 |
Total stockholders' equity | 10,474 | 10,450 |
Total liabilities and stockholders' equity | $ 116,958 | $ 109,163 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
CONSOLIDATED BALANCE SHEETS | ||
Loans, allowance for loan losses | $ 550 | $ 506 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, shares issued (in shares) | 668,919 | 679,769 |
Common stock, shares outstanding (in shares) | 668,919 | 679,769 |
Unearned Compensation - ESOP, shares unallocated | 26,715 | 32,439 |
CONSOLIDATED STATEMENTS OF (LOS
CONSOLIDATED STATEMENTS OF (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 910 | $ 738 | $ 2,681 | $ 2,113 |
Interest and dividends on securities | 102 | 89 | 311 | 189 |
Other interest | 5 | 7 | 16 | 23 |
Total interest and dividend income | 1,017 | 834 | 3,008 | 2,325 |
Interest expense: | ||||
Interest on deposits | 178 | 149 | 510 | 420 |
Interest on Federal Home Loan Bank advances | 28 | 3 | 83 | 10 |
Total interest expense | 206 | 152 | 593 | 430 |
Net interest and dividend income | 811 | 682 | 2,415 | 1,895 |
Provision for loan losses | 28 | 40 | 44 | 19 |
Net interest and dividend income after provision for loan losses | 783 | 642 | 2,371 | 1,876 |
Noninterest income: | ||||
Mortgage banking activities | 247 | 99 | 626 | 319 |
Customer service fees | 93 | 56 | 281 | 230 |
Other income | 21 | 11 | 52 | 31 |
Total noninterest income | 361 | 166 | 959 | 580 |
Noninterest expense: | ||||
Salaries and employee benefits | 599 | 494 | 1,696 | 1,446 |
Occupancy and equipment expense | 170 | 120 | 423 | 345 |
Professional fees | 101 | 112 | 315 | 298 |
Data processing | 74 | 70 | 262 | 221 |
Deposit insurance expense | 23 | 18 | 68 | 46 |
Advertising | 23 | 23 | 60 | 64 |
Supplies | 16 | 12 | 44 | 32 |
Other expense | 112 | 81 | 274 | 237 |
Total noninterest expense | 1,118 | 930 | 3,142 | 2,689 |
Income (loss) before income tax expense (benefit) | 26 | (122) | 188 | (233) |
Income tax expense (benefit) | 14 | (42) | 79 | (80) |
Net income (loss) | $ 12 | $ (80) | $ 109 | $ (153) |
Earnings (loss) per share: | ||||
Basic (in dollars per share) | $ 0.02 | $ (0.13) | $ 0.18 | $ (0.25) |
Diluted (in dollars per share) | $ 0.02 | $ (0.13) | $ 0.18 | $ (0.25) |
Weighted average shares outstanding | ||||
Basic (in shares) | 613,923 | 625,016 | 613,117 | 621,193 |
Diluted (in shares) | 614,147 | 625,016 | 613,117 | 621,193 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ||||
Net income (loss) | $ 12 | $ (80) | $ 109 | $ (153) |
Other comprehensive (loss) income, net of tax: | ||||
Net change in unrealized holding gain on available-for-sale securities | (185) | 69 | 14 | 42 |
Other comprehensive (loss) income, net of tax | (185) | 69 | 14 | 42 |
Comprehensive income (loss) | $ (173) | $ (11) | $ 123 | $ (111) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional paid-in capital | Retained Earnings | Unearned compensation - ESOP | Unearned compensation - Restricted Stock Awards | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Sep. 30, 2013 | $ 7 | $ 5,645 | $ 5,179 | $ (482) | $ 38 | $ 10,387 | |
Balance (in shares) at Sep. 30, 2013 | 661,250 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | (153) | (153) | |||||
Other comprehensive income, net of tax | 42 | 42 | |||||
Common stock released by ESOP (1,908 and 7,632 shares) for the period ended June 30, 2015 and 2014, respectively | 15 | 80 | 95 | ||||
Common stock committed to be released by ESOP (3,816 shares) | 5 | 41 | 46 | ||||
Balance at Jun. 30, 2014 | $ 7 | 5,665 | 5,026 | (361) | 80 | 10,417 | |
Balance (in shares) at Jun. 30, 2014 | 661,250 | ||||||
Balance at Sep. 30, 2014 | $ 7 | 5,903 | 5,035 | (341) | $ (221) | 67 | 10,450 |
Balance (in shares) at Sep. 30, 2014 | 679,769 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 109 | 109 | |||||
Other comprehensive income, net of tax | 14 | 14 | |||||
Issuance of restricted stock awards | 104 | (104) | |||||
Issuance of restricted stock awards (in shares) | 7,669 | ||||||
Compensation expense - stock options | (4) | (4) | |||||
Shares repurchased | (243) | (243) | |||||
Shares repurchased (in shares) | (18,519) | ||||||
Compensation expense - restricted stock awards | 64 | 64 | |||||
Common stock released by ESOP (1,908 and 7,632 shares) for the period ended June 30, 2015 and 2014, respectively | 5 | 20 | 25 | ||||
Common stock committed to be released by ESOP (3,816 shares) | 11 | 40 | 51 | ||||
Balance at Jun. 30, 2015 | $ 7 | $ 5,784 | $ 5,144 | $ (281) | $ (261) | $ 81 | $ 10,474 |
Balance (in shares) at Jun. 30, 2015 | 668,919 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - shares | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Common stock released by ESOP (in shares) | (1,908) | (7,632) |
Common stock committed to be released by ESOP (in shares) | (3,816) | 3,816 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 109 | $ (153) |
Adjustments to reconcile net income (loss) to net cash used in provided by operating activities: | ||
Amortization of securities, net | 27 | 25 |
Provision for loan losses | 44 | 19 |
Change in deferred loan costs, net | (2) | (125) |
Loans originated for sale | (60,258) | (30,607) |
Proceeds from sale of loans | 56,267 | 26,133 |
Gain on sale of loans | (560) | (314) |
Depreciation and amortization | 131 | 131 |
Increase in accrued interest receivable | (28) | (34) |
(Increase) decrease in mortgage servicing asset | (13) | |
Decrease (increase) in other assets | 96 | (121) |
Compensation expense - restricted stock awards | 64 | |
Compensation expense - ESOP | 76 | 141 |
Compensation expense - stock options | 4 | |
Increase (decrease) in accrued expenses and other liabilities | 68 | (210) |
Net cash used in operating activities | (3,975) | (5,115) |
Cash flows from investing activities: | ||
Purchases of interest-bearing time deposits in other banks | (1,485) | (1,738) |
Proceeds from maturities of interest-bearing time deposits in other banks | 1,737 | 2,901 |
Purchases of available-for-sale securities | (1,402) | (10,146) |
Proceeds from maturities of available-for-sale securities | 1,495 | 1,033 |
Loan originations and principal collections, net | (5,135) | (11,985) |
Recoveries of loans previously charged off | 3 | |
Purchase of Federal Home Loan Bank stock | (204) | (279) |
Capital expenditures | (118) | (145) |
Net cash used in investing activities | (5,112) | (20,356) |
Cash flows from financing activities: | ||
Net increase in demand deposits, NOW and savings accounts | 4,940 | 4,383 |
Net increase in time deposits | 4,184 | 11,320 |
Net change in short-term advances from Federal Home Loan Bank | (1,429) | 8,760 |
Common stock acquired - repurchase plan | (243) | |
Net cash provided by financing activities | 7,452 | 24,463 |
Net decrease in cash and cash equivalents | (1,635) | (1,008) |
Cash and cash equivalents at beginning of period | 5,938 | 4,713 |
Cash and cash equivalents at end of period | 4,303 | 3,705 |
Supplemental disclosures: | ||
Interest paid | 594 | $ 430 |
Income taxes received | $ (4) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Jun. 30, 2015 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1 - BASIS OF PRESENTATION The consolidated condensed interim financial statements include the accounts of Meetinghouse Bancorp, Inc. (the “Company”) and its wholly-owned subsidiary, Meetinghouse Bank (the “Bank”), and the Bank’s wholly-owned subsidiaries, Meetinghouse Securities Corporation and 69 Richmond Street Realty Trust. All significant intercompany accounts and transactions have been eliminated in the consolidation. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and the instructions for Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments) that are necessary for a fair presentation. The results shown for the interim periods ended June 30, 2015 and June 30, 2014 are not necessarily indicative of the results to be obtained for a full year. These consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended September 30, 2014 included in the Company’s Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission (“SEC”). In preparing the consolidated condensed interim financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, as of the date of the statement of financial condition and reported amounts of revenues and expenses for the periods presented. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and deferred income taxes. |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Jun. 30, 2015 | |
NATURE OF OPERATIONS | |
NATURE OF OPERATIONS | NOTE 2 - NATURE OF OPERATIONS The Company is the registered bank holding company for the Bank. The Bank, a Massachusetts co-operative bank, is headquartered in Dorchester, Massachusetts. The Bank is engaged principally in the business of attracting deposits from the general public and investing those deposits in residential and commercial real estate loans, construction loans, and in consumer and small business loans. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Jun. 30, 2015 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” The objective of this ASU is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities the amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. However, in July 2015, the FASB voted to approve deferring the effective date by one year (i.e., interim and annual reporting period beginning after December 15, 2017). Early adoption is permitted, but not before the original effective date (i.e., interim and annual reporting periods beginning after December 15, 2016). The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The amendments in this ASU affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments: (1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) eliminate the presumption that a general partner should consolidate a limited partnership; (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The guidance should be applied on a retrospective basis. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles — Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In May 2015, the FASB issued ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” The amendments in this ASU remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. ASU 2015-07 is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The guidance shall be applied on a retrospective basis. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Jun. 30, 2015 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | NOTE 4 - EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share (“EPS”) excludes dilution and is calculated by dividing net income (loss) applicable to common stock by the weighted-average number of shares of common stock outstanding during the period. Diluted EPS is computed in a manner similar to that of basic EPS except that the weighted-average number of common shares outstanding is increased to include the number of incremental common shares that would have been outstanding if all potentially dilutive common stock equivalents were issued during the period. Unallocated common shares held by the Company’s Employee Stock Ownership Plan (the “ESOP”) are shown as a reduction in stockholders’ equity and are included in the weighted-average number of common shares outstanding for both basic and diluted EPS calculations as they are committed to be released. EPS for the three and nine months ended June 30, 2015 and 2014 have been computed as follows (in thousands, except share data): Three months ended June 30, 2015 2014 (unaudited) Net income (loss) applicable to common stock $ $ ) Average number of shares issued Average unallocated ESOP shares ) ) Average unvested restricted stock awards ) — Average number of common shares outstanding used to calculate basic earnings (loss) per share Effect of dilutive shares — Average number of common shares outstanding used to calculate diluted earnings (loss) per share Basic earnings (loss) per share $ $ ) Diluted earnings (loss) per share $ $ ) Nine months ended June 30, 2015 2014 (unaudited) Net income (loss) applicable to common stock $ $ ) Average number of shares issued Average unallocated ESOP shares ) ) Average unvested restricted stock awards ) — Average number of common shares outstanding used to calculate basic earnings (loss) per share Effect of dilutive shares — — Average number of common shares outstanding used to calculate diluted earnings (loss) per share Basic earnings (loss) per share $ $ ) Diluted earnings (loss) per share $ $ ) Options to purchase 59,509 shares were included in the computation of diluted earnings per share for the three-month period ending June 30, 2015. There were no options to purchase shares included in the computation of diluted earnings per share for the nine-month period ending June 30, 2015 because to do so would have been antidilutive. There were no outstanding options or awards during the nine-month period ending June 30, 2014. |
INVESTMENTS IN AVAILABLE-FOR-SA
INVESTMENTS IN AVAILABLE-FOR-SALE SECURITIES | 9 Months Ended |
Jun. 30, 2015 | |
INVESTMENTS IN AVAILABLE-FOR-SALE SECURITIES | |
INVESTMENTS IN AVAILABLE-FOR-SALE SECURITIES | NOTE 5 - INVESTMENTS IN AVAILABLE-FOR-SALE SECURITIES The amortized cost and estimated fair value of securities available-for-sale, with gross unrealized gains and losses, are as follows (in thousands): Amortized Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value June 30, 2015 (unaudited): U.S. Government and federal agency obligations $ $ $ $ Taxable municipal securities — Asset-backed securities — Mortgage-backed securities $ $ $ $ September 30, 2014: U.S. Government and federal agency obligations $ $ $ $ Taxable municipal securities — Asset-backed securities — Mortgage-backed securities $ $ $ $ The amortized cost and estimated fair value of available-for-sale securities, segregated by contractual maturity at June 30, 2015, are presented below (in thousands): Amortized Fair (Unaudited) Cost Basis Value Due within one year $ — $ — Due after one year through five years Due after five years through ten years Due after ten years — — Asset-backed securities Mortgage-backed securities $ $ There were no sales of available-for-sale securities during the nine months ended June 30, 2015 and 2014. Information pertaining to securities with gross unrealized losses at June 30, 2015, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows (in thousands): Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses June 30, 2015 (unaudited): U.S. Government and federal agency obligations $ $ $ — $ — $ $ Taxable municipal securities — — Mortgage-backed securities Total temporarily impaired securities $ $ $ $ $ $ September 30, 2014: U.S. Government and federal agency obligations $ $ $ $ $ $ Taxable municipal securities — — Mortgage-backed securities Total temporarily impaired securities $ $ $ $ $ $ Management conducts, at least on a quarterly basis, a review of the Company’s investment securities to determine if the value of any security has declined below its cost or amortized cost and whether such decline represents other-than-temporary impairment. The investments in the Company’s investment portfolio that are temporarily impaired as of June 30, 2015 consist of sixteen mortgage-backed securities, three debt securities issued by a U.S. Government federal agency and one taxable municipal security. The unrealized losses at June 30, 2015 are attributable to changes in market interest rates since the Company acquired the securities. As management has the ability and the intent to hold debt securities until maturity, the declines are deemed to be not other-than-temporary. |
LOANS
LOANS | 9 Months Ended |
Jun. 30, 2015 | |
LOANS | |
LOANS | NOTE 6 - LOANS Loans consist of the following: June 30, September 30, 2015 2014 (Unaudited) (Dollars in thousands) Real estate loans: Residential $ % $ % Commercial Construction Multi-family Total real estate Commercial Consumer loans: Home equity Other Total consumer % % Total loans Allowance for loan losses ) ) Deferred loan costs, net Net loans $ $ The following table sets forth information regarding the allowance for loan losses by portfolio segment as of and for the nine months ended June 30, 2015 (unaudited): Real Estate Consumer 1-4 Family 1-4 Family Owner Non-Owner (In thousands) Occupied Occupied Commercial Construction Multi-family Commercial Home Equity Other Total Allowance for loan losses: Beginning balance $ $ $ $ $ $ $ $ $ Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Provision (benefit) — Ending balance $ $ $ $ $ $ $ $ $ Allowance for loan losses: Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: Collectively evaluated for impairment Total allowance for loan losses ending balance $ $ $ $ $ $ $ $ $ Loans: Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: Collectively evaluated for impairment Total loans ending balance $ $ $ $ $ $ $ $ $ The following table sets forth information regarding the allowance for loan losses by portfolio segment as of and for the nine months ended June 30, 2014 (unaudited): Real Estate Consumer 1-4 Family 1-4 Family Owner Non-Owner (In thousands) Occupied Occupied Commercial Construction Multi-family Commercial Home Equity Other Total Allowance for loan losses: Beginning balance $ $ $ $ $ $ $ $ $ Charge-offs — — — — — — — — — Recoveries — — — — — — — (Benefit) provision ) ) Ending balance $ $ $ $ $ $ $ $ $ The following table sets forth information regarding the allowance for loan losses by portfolio segment as of September 30, 2014: Real Estate Consumer 1-4 Family 1-4 Family Owner Non-Owner (In thousands) Occupied Occupied Commercial Construction Multi-family Commercial Home Equity Other Total Allowance for loan losses: Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: Collectively evaluated for impairment Total allowance for loan losses ending balance $ $ $ $ $ $ $ $ $ Loans: Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: Collectively evaluated for impairment Total loans ending balance $ $ $ $ $ $ $ $ $ The following table sets forth information regarding nonaccrual loans and past-due loans as of June 30, 2015 (unaudited): 90 Days 90 Days or 30–59 Days 60–89 Days or More Total Total Total More Past Due (In thousands) Past Due Past Due Past Due Past Due Current Loans and Accruing Nonaccrual June 30, 2015: Real estate: Residential $ $ — $ $ $ $ $ — $ Commercial — — — — — — Construction — — — — — — Multi-family — — — — — — Commercial — — — — Home equity — — — Other consumer — — — — — — Total $ $ $ $ $ $ $ — $ The following table sets forth information regarding nonaccrual loans and past-due loans as of September 30, 2014: 90 Days 90 Days or 30–59 Days 60–89 Days or More Total Total Total More Past Due (In thousands) Past Due Past Due Past Due Past Due Current Loans and Accruing Nonaccrual September 30, 2014: Real estate: Residential $ $ $ — $ $ $ $ — $ — Commercial — — — — — — Construction — — — — — — Multi-family — — — — Commercial — — — — — — Home equity — — — Other consumer — — — — Total $ $ $ — $ $ $ $ — $ As of June 30, 2015 (unaudited) and September 30, 2014, and during the nine months and year then ended, respectively, the Company had no loans categorized as impaired. There were no loans modified during the nine months ended June 30, 2015 (unaudited) or during the year ended September 30, 2014 that met the definition of a troubled debt restructured loan as described in ASC 310-40. As of June 30, 2015 (unaudited) there were no residential real estate loans in the process of foreclosure. Credit Quality Information The Company utilizes an eight grade internal loan rating system for commercial real estate, construction and commercial loans as follows: Loans rated 1 - 4: Loans in these categories are considered “pass” rated loans and conform in all respects to Company and regulatory requirements. These are also loans for which no repayment risk has been identified. Credit or collateral exceptions are minimal, are in the process of correction or do not represent significant risk. Loans rated 5: Loans in this category are considered “special mention” and are fundamentally sound, but exhibit potentially unwarranted credit risk or other unsatisfactory characteristics. The likelihood of loss to the Company is remote. Loans rated 6: Loans in this category are considered “substandard” and are inadequately protected by current sound net worth, paying capacity of the obligor, or the value of pledged collateral. Loans in this category also include those loans with unsatisfactory characteristics indicating higher levels of risk. The combination of one or more of these characteristics increases the possibility of loss to the Company. Loans rated 7: Loans in this category are considered “doubtful.” Loans in this category exhibit weaknesses inherent in the substandard classification and, in addition, collection or liquidation in full is highly questionable. Loans rated 8: Loans in this category are considered uncollectible (“loss”) and of such little value that their continuance as an asset is not warranted. On an annual basis, or more often if needed, the Company formally reviews the ratings on all commercial real estate, construction and commercial loans. For all residential real estate and consumer loans, the Company initially assesses credit quality based upon the borrower’s ability to service the debt and subsequently monitors these loans based upon the borrower’s payment activity. The following table presents the Company’s loans by risk rating as of June 30, 2015 (unaudited): Real Estate Consumer (In thousands) Residential Commercial Construction Multi-family Commercial Home Equity Other Total June 30, 2015: Grade: Pass $ — $ $ $ $ $ — $ — $ Special mention — — — — Substandard — — — — — — Not formally rated — — — — Total $ $ $ $ $ $ $ $ The following table presents the Company’s loans by risk rating as of September 30, 2014: Real Estate Consumer (In thousands) Residential Commercial Construction Multi-family Commercial Home Equity Other Total September 30, 2014: Grade: Pass $ — $ $ $ $ $ — $ — $ Special mention — — — — Substandard — — — — — — Not formally rated — — — — Total $ $ $ $ $ $ $ $ |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jun. 30, 2015 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 7 - FAIR VALUE MEASUREMENTS ASC 820-10, “Fair Value Measurement — Overall,” provides a framework for measuring fair value under GAAP. This guidance also allows an entity the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. In accordance with ASC 820-10, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 - Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes U.S. Treasury, other U.S. Government and agency mortgage-backed securities that are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. Level 3 - Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value at June 30, 2015 (unaudited) and September 30, 2014. The Company did not have any significant transfers of assets between Levels 1 and 2 of the fair value hierarchy during the nine months ended June 30, 2015 (unaudited) and the year ended September 30, 2014. The Company’s investment in mortgage-backed securities and other debt securities available-for-sale is generally classified within Level 2 of the fair value hierarchy. For these securities, we obtain fair value measurements from independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. Level 3 is for assets and liabilities that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. The following summarizes assets measured at fair value on a recurring basis at June 30, 2015 (unaudited) and September 30, 2014: (In thousands) Total Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 June 30, 2015: Securities available-for-sale: U.S. Government and federal agency obligations $ $ — $ $ — Taxable municipal securities — — Asset-backed securities — — Mortgage-backed securities — — $ $ — $ $ — September 30, 2014: Securities available-for-sale: U.S. Government and federal agency obligations $ $ — $ $ — Taxable municipal securities — — Asset-backed securities — — Mortgage-backed securities — — $ $ — $ $ — The Company may be required, from time to time, to measure certain other assets at fair value on a non-recurring basis in accordance with GAAP. There were no Level 1, Level 2 or Level 3 nonrecurring fair value measurements at June 30, 2015 (unaudited) and September 30, 2014. The estimated fair values of the Company’s financial instruments, all of which are held or issued for purposes other than trading, are as follows: June 30, 2015 (unaudited) Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In Thousands) Financial assets: Cash and cash equivalents $ $ $ — $ — $ Interest-bearing time deposits with other banks — — Available-for-sale securities — — Federal Home Loan Bank stock — — Loans held-for-sale — — Loans, net — — Corporate Central Bank deposit — — Accrued interest receivable — — Financial liabilities: Deposits — — Federal Home Loan Bank advances — — September 30, 2014 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In Thousands) Financial assets: Cash and cash equivalents $ $ $ — $ — $ Interest-bearing time deposits with other banks — — Available-for-sale securities — — Federal Home Loan Bank stock — — Loans held-for-sale — — Loans, net — — Corporate Central Bank deposit — — Accrued interest receivable — — Financial liabilities: Deposits — — Federal Home Loan Bank advances — — The carrying amounts of financial instruments shown in the above tables are included in the consolidated balance sheets as of June 30, 2015 (unaudited) and September 30, 2014 under the indicated captions. Accounting policies related to financial instruments are described below. ASC 825, “Financial Instruments,” requires that the Company disclose estimated fair value for its financial instruments. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows: Cash and cash equivalents: The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate those assets’ fair values. Interest-bearing time deposits with other banks: Fair values of interest-bearing time deposits with other banks are estimated using discounted cash flow analyses based on current rates for similar types of deposits. Securities: Fair values for securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Loans held-for-sale: Fair values of loans held-for-sale are estimated based on outstanding investor commitments or, in the absence of such commitments, are based on current investor yield requirements. Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Accrued interest receivable: The carrying amounts of accrued interest receivable approximate their fair values. Deposit liabilities: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificate accounts are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on certificate accounts. Federal Home Loan Bank advances: Fair values for Federal Home Loan Bank of Boston (FHLB) advances are estimated using a discounted cash flow technique that applies interest rates currently being offered on advances to a schedule of aggregated expected monthly maturities on FHLB advances. Off-balance sheet instruments: The fair value of commitments to originate loans is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments and the unadvanced portion of loans, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counterparties at the reporting date. |
REGULATORY CAPITAL
REGULATORY CAPITAL | 9 Months Ended |
Jun. 30, 2015 | |
REGULATORY CAPITAL | |
REGULATORY CAPITAL | NOTE 8 - REGULATORY CAPITAL The Bank is subject to various regulatory capital requirements administered by the 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. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital 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. Effective January 1, 2015 (with a phase-in period of two to four years for certain components), the Bank became subject to new capital regulations adopted by the Board of Governors of the Federal Reserve System (“FRB”) and the FDIC, which implement the Basel III regulatory capital reforms and the changes required by the Dodd-Frank Act. The new regulations require a new common equity Tier 1 (“CETI”) capital ratio of 4.5%, increase the minimum Tier 1 capital to risk-weighted assets ratio to 6.0% from 4.0%, require a minimum total capital to risk-weighted assets ratio of 8.0% and require a minimum Tier 1 leverage ratio of 4.0%. CETI generally consists of common stock and retained earnings, subject to applicable adjustments and deductions. Under new prompt corrective action regulations, in order to be considered “well capitalized,” the Bank must maintain a CETI capital ratio of 6.5% (new) and a Tier 1 ratio of 8.0% (increased from 6.0%), a total risk based capital ratio of 10.0% (unchanged) and a Tier 1 leverage ratio of 5.0% (unchanged). In addition, the regulations establish a capital conservation buffer above the required capital ratios that phases in beginning January 1, 2016 at 0.625% of risk-weighted assets and increases each year by 0.625% until it is fully phased in at 2.5% effective January 1, 2019. Beginning January 1, 2016, failure to maintain the capital conservation buffer will limit the ability of the Bank and the Company to pay dividends, repurchase shares or pay discretionary bonuses. The new regulations implemented changes to what constitutes regulatory capital. Certain instruments will no longer constitute qualifying capital, subject to phase-out periods. In addition, Tier 2 capital is no longer limited to the amount of Tier 1 capital included in total capital. Mortgage servicing rights, certain deferred tax assets and investments in unconsolidated subsidiaries over designated percentages of CETI will be deducted from capital. The Bank has elected to permanently opt out of the inclusion of accumulated other comprehensive income in capital calculations, as permitted by the regulations. This opt-out will reduce the impact of market volatility on our regulatory capital ratios. The new regulations also changed the risk weights of certain assets, including an increase in the risk weight of certain high volatility commercial real estate acquisition, development and construction loans and non-residential mortgage loans that are 90 days past due or on non-accrual status to 150% from 100%, a credit conversion factor for the unused portion of commitments with maturities of less than one year that are not cancellable to 20% from 0%, an increase in the risk weight for mortgage servicing and deferred tax assets that are not deducted from capital to 250% from 100%, and an increase in the risk weight for equity exposures to 600% from 0%. As of June 30, 2015 (unaudited), the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The Bank’s actual capital amounts and ratios are also presented in the table below. To Be Well Minimum Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of June 30, 2015 (unaudited): Common Equity Tier 1 Capital $ % $ % $ % Total Capital (to risk weighted assets) Tier 1 Capital (to risk weighted assets) Tier 1 Capital (to average assets) As of September 30, 2014: Total Capital (to risk weighted assets) $ % $ % $ % Tier 1 Capital (to risk weighted assets) Tier 1 Capital (to average assets) |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Jun. 30, 2015 | |
OTHER COMPREHENSIVE INCOME (LOSS) | |
OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 9 - OTHER COMPREHENSIVE INCOME (LOSS) GAAP generally requires that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net income (loss), are components of comprehensive income (loss). The components of other comprehensive income (loss), included in stockholders’ equity, are as follows during the three and nine months ended June 30, 2015 and 2014 (unaudited): Three months ended June 30, 2015 2014 (In Thousands) Unrealized (losses) gains on securities: Net unrealized holding (loss) gain on available-for-sale securities $ ) $ Reclassification adjustment for realized (gains) losses in net income — — ) Income tax expense (benefit) ) Other comprehensive (loss) income, net of tax $ ) $ Nine months ended June 30, 2015 2014 (In Thousands) Unrealized gains on securities: Net unrealized holding gain on available-for-sale securities $ $ Reclassification adjustment for realized (gains) losses in net income — — Income tax expense ) ) Other comprehensive income, net of tax $ $ At June 30, 2015 (unaudited) and September 30, 2014, the components of accumulated other comprehensive income, included in stockholders’ equity, are as follows: June 30, September 30, 2015 2014 (In Thousands) Net unrealized gain on securities available-for-sale $ $ Total accumulated other comprehensive income $ $ |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 9 Months Ended |
Jun. 30, 2015 | |
SHARE BASED COMPENSATION | |
SHARE BASED COMPENSATION | NOTE 10 — SHARE BASED COMPENSATION Shareholders of Meetinghouse Bancorp Inc. approved the 2014 Equity Incentive Plan (“Plan”) on February 9, 2014, and the Board of Directors ratified the vote on April 15, 2014. Under the Plan, the Company may grant restricted stock awards and options to employees, officers and directors. On May 19, 2015, the Board of Directors issued 59,509 options to its officers and directors, all of which remained outstanding at June 30, 2015. Under the 2014 Plan, option grants generally vest over a seven-year period and expire ten years from the date of grant. Compensation cost is based on the grant-date fair value of the award. The fair value of awards that grant the employee the right to purchase the underlying shares once the vesting conditions are met is measured using a Black-Scholes model. The assumptions for the Black-Scholes model used to calculate the fair value of the options granted are as follows: Weighted average fair value of stock options granted: $ Assumptions used to determine fair value: Dividend yield: % Risk free rate of return: % Expected life of options (years): Expected volatility: % The total compensation expense related to options granted for the nine month period ended June 30, 2015 was $4,000. As of June 30, 2015, there is $281,000 of unrecognized compensation expense related to options granted which is to be recognized over the remaining vesting period of 6.89 years. On May 19, 2015, the Board of Directors granted stock awards in the amount of 7,669 shares to its management and employees. The awards vest over a three-year period. The total compensation expense related to stock awards granted for the nine-month period ended June 30, 2015 was $64,000. As of June 30, 2015, there is $261,000 of unrecognized compensation expense related to stock awards granted which is to be recognized over the remaining weighted-average vesting period of 2.4 years. The Bank has adopted a tax-qualified ESOP for the benefit of eligible employees. Effective November 19, 2012, the Bank converted from a Massachusetts-chartered mutual co-operative bank to a Massachusetts-chartered stock co-operative bank and become the wholly-owned subsidiary of the Company. The Company completed its initial public offering in connection with the conversion transaction by selling a total of 661,250 shares of common stock at a purchase price of $10.00 per share in a subscription offering, of which 27,700 shares were purchased by the Bank’s ESOP. The ESOP acquired an additional 18,587 shares in the open market subsequent to the conversion. The ESOP funded its stock purchase through a loan from the Company equal to 100% of the aggregate purchase price of the common stock. The ESOP trustee will repay the loan principally through the Bank’s contributions to the ESOP and, possibly, dividends paid on common stock held by the plan over a 6-year loan term. The trustee holds the shares purchased in a loan suspense account and will release the shares from the suspense account on a pro rata basis as it repays the loan. The trustee will allocate the shares released among active participants on the basis of each active participant’s proportional share of compensation for the plan year. Generally, participants will receive distributions from the ESOP upon separation from service. The trustee will reallocate any unvested shares of common stock forfeited by participants upon their separation from service among the remaining participants in the plan. Under applicable accounting requirements, the Company will record a compensation expense for the ESOP at the fair market value of the shares when they are committed to be released from the suspense account to participants’ accounts under the plan. At June 30, 2015 (unaudited), the remaining principal balance on the ESOP debt is $332,000 and the number of shares held by the ESOP is 46,287. Total compensation expense recognized in connection with the ESOP was $26,000 and $22,000 for the three months ended June 30, 2015 and 2014, respectively (unaudited), and $76,000 and $69,000 for the nine months ended June 30, 2015 and 2014, respectively (unaudited). |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of basic and diluted earnings per share calculation | EPS for the three and nine months ended June 30, 2015 and 2014 have been computed as follows (in thousands, except share data): Three months ended June 30, 2015 2014 (unaudited) Net income (loss) applicable to common stock $ $ ) Average number of shares issued Average unallocated ESOP shares ) ) Average unvested restricted stock awards ) — Average number of common shares outstanding used to calculate basic earnings (loss) per share Effect of dilutive shares — Average number of common shares outstanding used to calculate diluted earnings (loss) per share Basic earnings (loss) per share $ $ ) Diluted earnings (loss) per share $ $ ) Nine months ended June 30, 2015 2014 (unaudited) Net income (loss) applicable to common stock $ $ ) Average number of shares issued Average unallocated ESOP shares ) ) Average unvested restricted stock awards ) — Average number of common shares outstanding used to calculate basic earnings (loss) per share Effect of dilutive shares — — Average number of common shares outstanding used to calculate diluted earnings (loss) per share Basic earnings (loss) per share $ $ ) Diluted earnings (loss) per share $ $ ) |
INVESTMENTS IN AVAILABLE-FOR-20
INVESTMENTS IN AVAILABLE-FOR-SALE SECURITIES (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
INVESTMENTS IN AVAILABLE-FOR-SALE SECURITIES | |
Schedule of amortized cost and approximate fair values of debt securities available-for-sale, with gross unrealized gains and losses | The amortized cost and estimated fair value of securities available-for-sale, with gross unrealized gains and losses, are as follows (in thousands): Amortized Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value June 30, 2015 (unaudited): U.S. Government and federal agency obligations $ $ $ $ Taxable municipal securities — Asset-backed securities — Mortgage-backed securities $ $ $ $ September 30, 2014: U.S. Government and federal agency obligations $ $ $ $ Taxable municipal securities — Asset-backed securities — Mortgage-backed securities $ $ $ $ |
Schedule of fair value of debt available-for-sale securities by contractual maturity | The amortized cost and estimated fair value of available-for-sale securities, segregated by contractual maturity at June 30, 2015, are presented below (in thousands): Amortized Fair (Unaudited) Cost Basis Value Due within one year $ — $ — Due after one year through five years Due after five years through ten years Due after ten years — — Asset-backed securities Mortgage-backed securities $ $ |
Schedule of information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position | Information pertaining to securities with gross unrealized losses at June 30, 2015, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows (in thousands): Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses June 30, 2015 (unaudited): U.S. Government and federal agency obligations $ $ $ — $ — $ $ Taxable municipal securities — — Mortgage-backed securities Total temporarily impaired securities $ $ $ $ $ $ September 30, 2014: U.S. Government and federal agency obligations $ $ $ $ $ $ Taxable municipal securities — — Mortgage-backed securities Total temporarily impaired securities $ $ $ $ $ $ |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
LOANS | |
Schedule of loans | June 30, September 30, 2015 2014 (Unaudited) (Dollars in thousands) Real estate loans: Residential $ % $ % Commercial Construction Multi-family Total real estate Commercial Consumer loans: Home equity Other Total consumer % % Total loans Allowance for loan losses ) ) Deferred loan costs, net Net loans $ $ |
Schedule of allowance for loan losses by portfolio segment | The following table sets forth information regarding the allowance for loan losses by portfolio segment as of and for the nine months ended June 30, 2015 (unaudited): Real Estate Consumer 1-4 Family 1-4 Family Owner Non-Owner (In thousands) Occupied Occupied Commercial Construction Multi-family Commercial Home Equity Other Total Allowance for loan losses: Beginning balance $ $ $ $ $ $ $ $ $ Charge-offs — — — — — — — — — Recoveries — — — — — — — — — Provision (benefit) — Ending balance $ $ $ $ $ $ $ $ $ Allowance for loan losses: Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: Collectively evaluated for impairment Total allowance for loan losses ending balance $ $ $ $ $ $ $ $ $ Loans: Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: Collectively evaluated for impairment Total loans ending balance $ $ $ $ $ $ $ $ $ The following table sets forth information regarding the allowance for loan losses by portfolio segment as of and for the nine months ended June 30, 2014 (unaudited): Real Estate Consumer 1-4 Family 1-4 Family Owner Non-Owner (In thousands) Occupied Occupied Commercial Construction Multi-family Commercial Home Equity Other Total Allowance for loan losses: Beginning balance $ $ $ $ $ $ $ $ $ Charge-offs — — — — — — — — — Recoveries — — — — — — — (Benefit) provision ) ) Ending balance $ $ $ $ $ $ $ $ $ The following table sets forth information regarding the allowance for loan losses by portfolio segment as of September 30, 2014: Real Estate Consumer 1-4 Family 1-4 Family Owner Non-Owner (In thousands) Occupied Occupied Commercial Construction Multi-family Commercial Home Equity Other Total Allowance for loan losses: Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: Collectively evaluated for impairment Total allowance for loan losses ending balance $ $ $ $ $ $ $ $ $ Loans: Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Ending balance: Collectively evaluated for impairment Total loans ending balance $ $ $ $ $ $ $ $ $ |
Schedule of information regarding nonaccrual loans and past-due loans | 90 Days 90 Days or 30–59 Days 60–89 Days or More Total Total Total More Past Due (In thousands) Past Due Past Due Past Due Past Due Current Loans and Accruing Nonaccrual June 30, 2015: Real estate: Residential $ $ — $ $ $ $ $ — $ Commercial — — — — — — Construction — — — — — — Multi-family — — — — — — Commercial — — — — Home equity — — — Other consumer — — — — — — Total $ $ $ $ $ $ $ — $ 90 Days 90 Days or 30–59 Days 60–89 Days or More Total Total Total More Past Due (In thousands) Past Due Past Due Past Due Past Due Current Loans and Accruing Nonaccrual September 30, 2014: Real estate: Residential $ $ $ — $ $ $ $ — $ — Commercial — — — — — — Construction — — — — — — Multi-family — — — — Commercial — — — — — — Home equity — — — Other consumer — — — — Total $ $ $ — $ $ $ $ — $ |
Schedule of loans by risk rating | Real Estate Consumer (In thousands) Residential Commercial Construction Multi-family Commercial Home Equity Other Total June 30, 2015: Grade: Pass $ — $ $ $ $ $ — $ — $ Special mention — — — — Substandard — — — — — — Not formally rated — — — — Total $ $ $ $ $ $ $ $ Real Estate Consumer (In thousands) Residential Commercial Construction Multi-family Commercial Home Equity Other Total September 30, 2014: Grade: Pass $ — $ $ $ $ $ — $ — $ Special mention — — — — Substandard — — — — — — Not formally rated — — — — Total $ $ $ $ $ $ $ $ |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
FAIR VALUE MEASUREMENTS | |
Summary of assets measured at fair value on a recurring basis | (In thousands) Total Quoted Prices in Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 June 30, 2015: Securities available-for-sale: U.S. Government and federal agency obligations $ $ — $ $ — Taxable municipal securities — — Asset-backed securities — — Mortgage-backed securities — — $ $ — $ $ — September 30, 2014: Securities available-for-sale: U.S. Government and federal agency obligations $ $ — $ $ — Taxable municipal securities — — Asset-backed securities — — Mortgage-backed securities — — $ $ — $ $ — |
Schedule of estimated fair values of financial instruments | June 30, 2015 (unaudited) Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In Thousands) Financial assets: Cash and cash equivalents $ $ $ — $ — $ Interest-bearing time deposits with other banks — — Available-for-sale securities — — Federal Home Loan Bank stock — — Loans held-for-sale — — Loans, net — — Corporate Central Bank deposit — — Accrued interest receivable — — Financial liabilities: Deposits — — Federal Home Loan Bank advances — — September 30, 2014 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In Thousands) Financial assets: Cash and cash equivalents $ $ $ — $ — $ Interest-bearing time deposits with other banks — — Available-for-sale securities — — Federal Home Loan Bank stock — — Loans held-for-sale — — Loans, net — — Corporate Central Bank deposit — — Accrued interest receivable — — Financial liabilities: Deposits — — Federal Home Loan Bank advances — — |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
REGULATORY CAPITAL | |
Schedule of actual capital amounts and ratios | To Be Well Minimum Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of June 30, 2015 (unaudited): Common Equity Tier 1 Capital $ % $ % $ % Total Capital (to risk weighted assets) Tier 1 Capital (to risk weighted assets) Tier 1 Capital (to average assets) As of September 30, 2014: Total Capital (to risk weighted assets) $ % $ % $ % Tier 1 Capital (to risk weighted assets) Tier 1 Capital (to average assets) |
OTHER COMPREHENSIVE INCOME (L24
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
OTHER COMPREHENSIVE INCOME (LOSS) | |
Schedule of the components of other comprehensive income, included in stockholders' equity | Three months ended June 30, 2015 2014 (In Thousands) Unrealized (losses) gains on securities: Net unrealized holding (loss) gain on available-for-sale securities $ ) $ Reclassification adjustment for realized (gains) losses in net income — — ) Income tax expense (benefit) ) Other comprehensive (loss) income, net of tax $ ) $ Nine months ended June 30, 2015 2014 (In Thousands) Unrealized gains on securities: Net unrealized holding gain on available-for-sale securities $ $ Reclassification adjustment for realized (gains) losses in net income — — Income tax expense ) ) Other comprehensive income, net of tax $ $ |
Schedule of the components of accumulated other comprehensive income (loss), included in stockholders' equity | June 30, September 30, 2015 2014 (In Thousands) Net unrealized gain on securities available-for-sale $ $ Total accumulated other comprehensive income $ $ |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
SHARE BASED COMPENSATION | |
Schedule of assumptions used to calculate the fair value of options granted under Black-Scholes model | Weighted average fair value of stock options granted: $ Assumptions used to determine fair value: Dividend yield: % Risk free rate of return: % Expected life of options (years): Expected volatility: % |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
EARNINGS (LOSS) PER SHARE | ||||
Net income (loss) applicable to common stock | $ 12 | $ (80) | $ 109 | $ (153) |
Average number of shares issued | 664,914 | 661,250 | 663,361 | 661,250 |
Average unallocated ESOP shares | (28,602) | (36,234) | (30,517) | (40,057) |
Average unvested restricted stock awards | (22,389) | (19,727) | ||
Average number of common shares outstanding used to calculate basic earnings (loss) per share | 613,923 | 625,016 | 613,117 | 621,193 |
Effect of dilutive shares | 224 | |||
Average number of common shares outstanding used to calculate diluted earnings (loss) per share | 614,147 | 625,016 | 613,117 | 621,193 |
Basic earnings (loss) per share (in dollars per share) | $ 0.02 | $ (0.13) | $ 0.18 | $ (0.25) |
Diluted earnings (loss) per share (in dollars per share) | $ 0.02 | $ (0.13) | $ 0.18 | $ (0.25) |
Number of shares purchased | 59,509 | 0 | ||
Number of shares outstanding | 0 | 0 |
INVESTMENTS IN AVAILABLE-FOR-27
INVESTMENTS IN AVAILABLE-FOR-SALE SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Amortized cost and fair values of securities | ||
Amortized Cost Basis | $ 16,408 | $ 16,528 |
Gross Unrealized Gains | 187 | 173 |
Gross Unrealized Losses | 55 | 63 |
Fair Value | 16,540 | 16,638 |
Amortized Cost Basis | ||
Due after one year through five years | 750 | |
Due after five years through ten years | 2,961 | |
Asset-backed securities | 16,408 | 16,528 |
Mortgage-backed securities | 11,852 | |
Total | 16,408 | |
Fair Value | ||
Due after one year through five years | 750 | |
Due after five years through ten years | 2,977 | |
Fair Value | 16,540 | 16,638 |
Mortgage-backed securities | 11,950 | |
Total | 16,540 | 16,638 |
U.S. Government and federal agency obligations. | ||
Amortized cost and fair values of securities | ||
Amortized Cost Basis | 3,413 | 3,403 |
Gross Unrealized Gains | 27 | 10 |
Gross Unrealized Losses | 8 | 28 |
Fair Value | 3,432 | 3,385 |
Amortized Cost Basis | ||
Asset-backed securities | 3,413 | 3,403 |
Fair Value | ||
Fair Value | 3,432 | 3,385 |
Taxable municipal securities | ||
Amortized cost and fair values of securities | ||
Amortized Cost Basis | 298 | 301 |
Gross Unrealized Losses | 3 | 2 |
Fair Value | 295 | 299 |
Amortized Cost Basis | ||
Asset-backed securities | 298 | 301 |
Fair Value | ||
Fair Value | 295 | 299 |
Asset-backed securities | ||
Amortized cost and fair values of securities | ||
Amortized Cost Basis | 845 | 911 |
Gross Unrealized Gains | 18 | 5 |
Fair Value | 863 | 916 |
Amortized Cost Basis | ||
Asset-backed securities | 845 | 911 |
Fair Value | ||
Fair Value | 863 | 916 |
Mortgage-backed securities | ||
Amortized cost and fair values of securities | ||
Amortized Cost Basis | 11,852 | 11,913 |
Gross Unrealized Gains | 142 | 158 |
Gross Unrealized Losses | 44 | 33 |
Fair Value | 11,950 | 12,038 |
Amortized Cost Basis | ||
Asset-backed securities | 11,852 | 11,913 |
Fair Value | ||
Fair Value | $ 11,950 | $ 12,038 |
INVESTMENTS IN AVAILABLE-FOR-28
INVESTMENTS IN AVAILABLE-FOR-SALE SECURITIES (Details 2) $ in Thousands | Jun. 30, 2015USD ($)item | Sep. 30, 2014USD ($) |
Fair Value | ||
Less than 12 Months | $ 4,835 | $ 4,998 |
12 Months or Longer | 431 | 1,478 |
Total | 5,266 | 6,476 |
Unrealized Losses | ||
Less than 12 Months | 48 | 44 |
12 Months or Longer | 7 | 19 |
Total | 55 | 63 |
U.S. Government and federal agency obligations | ||
Fair Value | ||
Less than 12 Months | 841 | 1,445 |
12 Months or Longer | 744 | |
Total | 841 | 2,189 |
Unrealized Losses | ||
Less than 12 Months | 8 | 22 |
12 Months or Longer | 6 | |
Total | $ 8 | 28 |
Number of investments temporarily impaired | item | 3 | |
Taxable municipal securities | ||
Fair Value | ||
Less than 12 Months | $ 294 | 299 |
Total | 294 | 299 |
Unrealized Losses | ||
Less than 12 Months | 3 | 2 |
Total | $ 3 | 2 |
Number of investments temporarily impaired | item | 1 | |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | $ 3,700 | 3,254 |
12 Months or Longer | 431 | 734 |
Total | 4,131 | 3,988 |
Unrealized Losses | ||
Less than 12 Months | 37 | 20 |
12 Months or Longer | 7 | 13 |
Total | $ 44 | $ 33 |
Number of investments temporarily impaired | item | 16 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 |
Loans | ||||
Loans, gross | $ 82,103 | $ 76,968 | ||
Loans, gross (as a percent) | 100.00% | 100.00% | ||
Allowance for loan losses | $ (550) | $ (506) | $ (457) | $ (435) |
Deferred loan costs, net | 555 | 553 | ||
Net loans | 82,108 | 77,015 | ||
Real estate loans | ||||
Loans | ||||
Loans, gross | $ 69,923 | $ 65,700 | ||
Loans, gross (as a percent) | 85.17% | 85.36% | ||
Residential | ||||
Loans | ||||
Loans, gross | $ 50,300 | $ 48,654 | ||
Loans, gross (as a percent) | 61.27% | 63.21% | ||
Commercial real estate loans | ||||
Loans | ||||
Loans, gross | $ 12,768 | $ 12,473 | ||
Loans, gross (as a percent) | 15.55% | 16.20% | ||
Real estate loans: Construction | ||||
Loans | ||||
Loans, gross | $ 4,074 | $ 1,736 | ||
Loans, gross (as a percent) | 4.96% | 2.26% | ||
Multi-family | ||||
Loans | ||||
Loans, gross | $ 2,781 | $ 2,837 | ||
Loans, gross (as a percent) | 3.39% | 3.69% | ||
Commercial business loans and leases | ||||
Loans | ||||
Loans, gross | $ 3,014 | $ 2,940 | ||
Loans, gross (as a percent) | 3.67% | 3.82% | ||
Closed-end consumer loans | ||||
Loans | ||||
Loans, gross | $ 9,166 | $ 8,328 | ||
Loans, gross (as a percent) | 11.16% | 10.82% | ||
Home equity | ||||
Loans | ||||
Loans, gross | $ 7,705 | $ 6,989 | ||
Loans, gross (as a percent) | 9.38% | 9.08% | ||
Consumer | ||||
Loans | ||||
Loans, gross | $ 1,461 | $ 1,339 | ||
Loans, gross (as a percent) | 1.78% | 1.74% |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Allowance for loan losses: | |||||
Beginning balance | $ 506 | $ 435 | |||
Recoveries | 3 | ||||
Provision (benefit) for loan losses | $ 28 | $ 40 | 44 | 19 | |
Ending balance | 550 | 457 | 550 | 457 | |
Allowance for loan losses: | |||||
Ending balance: Collectively evaluated for impairment | 550 | $ 506 | |||
Total allowance for loan losses ending balance | 550 | 457 | 506 | 435 | 506 |
Loans: | |||||
Ending balance: Collectively evaluated for impairment | 82,103 | 76,968 | |||
Total loans ending balance | 82,103 | 76,968 | |||
1-4 Family Owner Occupied | |||||
Allowance for loan losses: | |||||
Beginning balance | 165 | 178 | |||
Provision (benefit) for loan losses | 8 | (15) | |||
Ending balance | 173 | 163 | 173 | 163 | |
Allowance for loan losses: | |||||
Ending balance: Collectively evaluated for impairment | 173 | 165 | |||
Total allowance for loan losses ending balance | 173 | 163 | 165 | 178 | 165 |
Loans: | |||||
Ending balance: Collectively evaluated for impairment | 34,534 | 33,179 | |||
Total loans ending balance | 34,534 | 33,179 | |||
1-4 Family Non-Owner Occupied | |||||
Allowance for loan losses: | |||||
Beginning balance | 101 | 75 | |||
Provision (benefit) for loan losses | 1 | 12 | |||
Ending balance | 102 | 87 | 102 | 87 | |
Allowance for loan losses: | |||||
Ending balance: Collectively evaluated for impairment | 102 | 101 | |||
Total allowance for loan losses ending balance | 102 | 87 | 101 | 75 | 101 |
Loans: | |||||
Ending balance: Collectively evaluated for impairment | 15,766 | 15,475 | |||
Total loans ending balance | 15,766 | 15,475 | |||
Commercial real estate loans | |||||
Allowance for loan losses: | |||||
Beginning balance | 86 | 81 | |||
Provision (benefit) for loan losses | 3 | (10) | |||
Ending balance | 89 | 71 | 89 | 71 | |
Allowance for loan losses: | |||||
Ending balance: Collectively evaluated for impairment | 89 | 86 | |||
Total allowance for loan losses ending balance | 89 | 71 | 86 | 81 | 86 |
Loans: | |||||
Ending balance: Collectively evaluated for impairment | 12,768 | 12,473 | |||
Total loans ending balance | 12,768 | 12,473 | |||
Real estate loans: Construction | |||||
Allowance for loan losses: | |||||
Beginning balance | 17 | 8 | |||
Provision (benefit) for loan losses | 24 | 2 | |||
Ending balance | 41 | 10 | 41 | 10 | |
Allowance for loan losses: | |||||
Ending balance: Collectively evaluated for impairment | 41 | 17 | |||
Total allowance for loan losses ending balance | 41 | 10 | 17 | 8 | 17 |
Loans: | |||||
Ending balance: Collectively evaluated for impairment | 4,074 | 1,736 | |||
Total loans ending balance | 4,074 | 1,736 | |||
Multi-family | |||||
Allowance for loan losses: | |||||
Beginning balance | 28 | 17 | |||
Provision (benefit) for loan losses | 0 | 12 | |||
Ending balance | 28 | 29 | 28 | 29 | |
Allowance for loan losses: | |||||
Ending balance: Collectively evaluated for impairment | 28 | 28 | |||
Total allowance for loan losses ending balance | 28 | 29 | 28 | 17 | 28 |
Loans: | |||||
Ending balance: Collectively evaluated for impairment | 2,781 | 2,837 | |||
Total loans ending balance | 2,781 | 2,837 | |||
Commercial business loans and leases | |||||
Allowance for loan losses: | |||||
Beginning balance | 25 | 16 | |||
Provision (benefit) for loan losses | 1 | 6 | |||
Ending balance | 26 | 22 | 26 | 22 | |
Allowance for loan losses: | |||||
Ending balance: Collectively evaluated for impairment | 26 | 25 | |||
Total allowance for loan losses ending balance | 26 | 22 | 25 | 16 | 25 |
Loans: | |||||
Ending balance: Collectively evaluated for impairment | 3,014 | 2,940 | |||
Total loans ending balance | 3,014 | 2,940 | |||
Home equity | |||||
Allowance for loan losses: | |||||
Beginning balance | 41 | 31 | |||
Provision (benefit) for loan losses | 3 | 4 | |||
Ending balance | 44 | 35 | 44 | 35 | |
Allowance for loan losses: | |||||
Ending balance: Collectively evaluated for impairment | 44 | 41 | |||
Total allowance for loan losses ending balance | 44 | 35 | 41 | 31 | 41 |
Loans: | |||||
Ending balance: Collectively evaluated for impairment | 7,705 | 6,989 | |||
Total loans ending balance | 7,705 | 6,989 | |||
Consumer | |||||
Allowance for loan losses: | |||||
Beginning balance | 43 | 29 | |||
Recoveries | 3 | ||||
Provision (benefit) for loan losses | 4 | 8 | |||
Ending balance | 47 | 40 | 47 | 40 | |
Allowance for loan losses: | |||||
Ending balance: Collectively evaluated for impairment | 47 | 43 | |||
Total allowance for loan losses ending balance | 47 | $ 40 | $ 43 | $ 29 | 43 |
Loans: | |||||
Ending balance: Collectively evaluated for impairment | 1,461 | 1,339 | |||
Total loans ending balance | $ 1,461 | $ 1,339 |
LOANS (Details 3)
LOANS (Details 3) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($)item | Sep. 30, 2014USD ($)item | |
Nonaccrual loans and past due loans | ||
30 - 59 Days | $ 243 | $ 602 |
60 - 89 Days | 221 | 233 |
90 Days or More Past Due | 148 | |
Total Past Due | 612 | 835 |
Total Current | 81,491 | 76,133 |
Total loans ending balance | 82,103 | 76,968 |
Total Non Accrual | $ 351 | $ 20 |
Number of loans categorized as impaired | item | 0 | 0 |
Number of loans modified | item | 0 | 0 |
Residential | ||
Nonaccrual loans and past due loans | ||
30 - 59 Days | $ 184 | $ 386 |
60 - 89 Days | 34 | |
90 Days or More Past Due | 148 | |
Total Past Due | 332 | 420 |
Total Current | 49,968 | 48,234 |
Total loans ending balance | 50,300 | 48,654 |
Total Non Accrual | $ 332 | |
Number of loans in the process of foreclosure | item | 0 | |
Commercial real estate loans | ||
Nonaccrual loans and past due loans | ||
Total Current | $ 12,768 | 12,473 |
Total loans ending balance | 12,768 | 12,473 |
Real estate loans: Construction | ||
Nonaccrual loans and past due loans | ||
Total Current | 4,074 | 1,736 |
Total loans ending balance | 4,074 | 1,736 |
Multi-family | ||
Nonaccrual loans and past due loans | ||
60 - 89 Days | 191 | |
Total Past Due | 191 | |
Total Current | 2,781 | 2,646 |
Total loans ending balance | 2,781 | 2,837 |
Commercial business loans and leases | ||
Nonaccrual loans and past due loans | ||
30 - 59 Days | 59 | |
Total Past Due | 59 | |
Total Current | 2,955 | 2,940 |
Total loans ending balance | 3,014 | 2,940 |
Home equity | ||
Nonaccrual loans and past due loans | ||
30 - 59 Days | 216 | |
60 - 89 Days | 221 | |
Total Past Due | 221 | 216 |
Total Current | 7,484 | 6,773 |
Total loans ending balance | 7,705 | 6,989 |
Total Non Accrual | 19 | 20 |
Consumer | ||
Nonaccrual loans and past due loans | ||
60 - 89 Days | 8 | |
Total Past Due | 8 | |
Total Current | 1,461 | 1,331 |
Total loans ending balance | $ 1,461 | $ 1,339 |
LOANS (Details 4)
LOANS (Details 4) $ in Thousands | Jun. 30, 2015USD ($)item | Sep. 30, 2014USD ($) |
Internal Loan Rating System | ||
Grade assigned in internal loan rating system | item | 8 | |
Loans by risk rating | ||
Loans | $ 82,103 | $ 76,968 |
Pass | ||
Loans by risk rating | ||
Loans | 22,227 | 19,807 |
Special Mention | ||
Loans by risk rating | ||
Loans | 793 | 432 |
Substandard | ||
Loans by risk rating | ||
Loans | 19 | 20 |
Not formally rated | ||
Loans by risk rating | ||
Loans | 59,064 | 56,709 |
Residential | ||
Loans by risk rating | ||
Loans | 50,300 | 48,654 |
Residential | Special Mention | ||
Loans by risk rating | ||
Loans | 361 | 225 |
Residential | Not formally rated | ||
Loans by risk rating | ||
Loans | 49,939 | 48,429 |
Commercial real estate loans | ||
Loans by risk rating | ||
Loans | 12,768 | 12,473 |
Commercial real estate loans | Pass | ||
Loans by risk rating | ||
Loans | 12,768 | 12,473 |
Real estate loans: Construction | ||
Loans by risk rating | ||
Loans | 4,074 | 1,736 |
Real estate loans: Construction | Pass | ||
Loans by risk rating | ||
Loans | 4,074 | 1,736 |
Multi-family | ||
Loans by risk rating | ||
Loans | 2,781 | 2,837 |
Multi-family | Pass | ||
Loans by risk rating | ||
Loans | 2,781 | 2,837 |
Commercial business loans and leases | ||
Loans by risk rating | ||
Loans | 3,014 | 2,940 |
Commercial business loans and leases | Pass | ||
Loans by risk rating | ||
Loans | 2,604 | 2,761 |
Commercial business loans and leases | Special Mention | ||
Loans by risk rating | ||
Loans | 410 | 179 |
Home equity | ||
Loans by risk rating | ||
Loans | 7,705 | 6,989 |
Home equity | Special Mention | ||
Loans by risk rating | ||
Loans | 22 | 28 |
Home equity | Substandard | ||
Loans by risk rating | ||
Loans | 19 | 20 |
Home equity | Not formally rated | ||
Loans by risk rating | ||
Loans | 7,664 | 6,941 |
Consumer | ||
Loans by risk rating | ||
Loans | 1,461 | 1,339 |
Consumer | Not formally rated | ||
Loans by risk rating | ||
Loans | $ 1,461 | $ 1,339 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Fair value measurements | ||
Securities available-for-sale | $ 16,540 | $ 16,638 |
U.S. Government and federal agency obligations. | ||
Fair value measurements | ||
Securities available-for-sale | 3,432 | 3,385 |
Taxable municipal securities | ||
Fair value measurements | ||
Securities available-for-sale | 295 | 299 |
Asset-backed securities | ||
Fair value measurements | ||
Securities available-for-sale | 863 | 916 |
Mortgage-backed securities | ||
Fair value measurements | ||
Securities available-for-sale | 11,950 | 12,038 |
Level 2 | ||
Fair value measurements | ||
Securities available-for-sale | 16,540 | 16,638 |
Recurring basis | Total | ||
Fair value measurements | ||
Securities available-for-sale | 16,540 | 16,638 |
Recurring basis | Total | U.S. Government and federal agency obligations | ||
Fair value measurements | ||
Securities available-for-sale | 3,432 | 3,385 |
Recurring basis | Total | Taxable municipal securities | ||
Fair value measurements | ||
Securities available-for-sale | 295 | 299 |
Recurring basis | Total | Asset-backed securities | ||
Fair value measurements | ||
Securities available-for-sale | 863 | 916 |
Recurring basis | Total | Mortgage-backed securities | ||
Fair value measurements | ||
Securities available-for-sale | 11,950 | 12,038 |
Recurring basis | Level 2 | ||
Fair value measurements | ||
Securities available-for-sale | 16,540 | 16,638 |
Recurring basis | Level 2 | U.S. Government and federal agency obligations | ||
Fair value measurements | ||
Securities available-for-sale | 3,432 | 3,385 |
Recurring basis | Level 2 | Taxable municipal securities | ||
Fair value measurements | ||
Securities available-for-sale | 295 | 299 |
Recurring basis | Level 2 | Asset-backed securities | ||
Fair value measurements | ||
Securities available-for-sale | 863 | 916 |
Recurring basis | Level 2 | Mortgage-backed securities | ||
Fair value measurements | ||
Securities available-for-sale | $ 11,950 | $ 12,038 |
FAIR VALUE MEASUREMENTS (Deta34
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 |
Financial assets: | ||||
Cash and cash equivalents | $ 4,303 | $ 5,938 | $ 3,705 | $ 4,713 |
Interest-bearing time deposits with other banks | 1,733 | 1,985 | ||
Available-for-sale securities | 16,540 | 16,638 | ||
Federal Home Loan Bank stock | 958 | 754 | ||
Accrued interest receivable | 301 | 273 | ||
Level 1 | ||||
Financial assets: | ||||
Cash and cash equivalents | 4,303 | 5,938 | ||
Federal Home Loan Bank stock | 958 | 754 | ||
Loans held-for-sale | 7,360 | 2,753 | ||
Corporate Central Bank Deposit | 427 | 427 | ||
Accrued interest receivable | 301 | 273 | ||
Level 2 | ||||
Financial assets: | ||||
Available-for-sale securities | 16,540 | 16,638 | ||
Level 3 | ||||
Financial assets: | ||||
Interest-bearing time deposits with other banks | 1,749 | 1,986 | ||
Loans, net | 83,193 | 77,749 | ||
Financial liabilities: | ||||
Deposits | 96,890 | 87,769 | ||
Federal Home Loan Bank advances | 9,508 | 10,933 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and cash equivalents | 4,303 | 5,938 | ||
Interest-bearing time deposits with other banks | 1,733 | 1,985 | ||
Available-for-sale securities | 16,540 | 16,638 | ||
Federal Home Loan Bank stock | 958 | 754 | ||
Loans held-for-sale | 7,278 | 2,727 | ||
Loans, net | 82,108 | 77,015 | ||
Corporate Central Bank Deposit | 427 | 427 | ||
Accrued interest receivable | 301 | 273 | ||
Financial liabilities: | ||||
Deposits | 96,607 | 87,483 | ||
Federal Home Loan Bank advances | 9,524 | 10,953 | ||
Total | ||||
Financial assets: | ||||
Cash and cash equivalents | 4,303 | 5,938 | ||
Interest-bearing time deposits with other banks | 1,749 | 1,986 | ||
Available-for-sale securities | 16,540 | 16,638 | ||
Federal Home Loan Bank stock | 958 | 754 | ||
Loans held-for-sale | 7,360 | 2,753 | ||
Loans, net | 83,193 | 77,749 | ||
Corporate Central Bank Deposit | 427 | 427 | ||
Accrued interest receivable | 301 | 273 | ||
Financial liabilities: | ||||
Deposits | 96,890 | 87,769 | ||
Federal Home Loan Bank advances | $ 9,508 | $ 10,933 |
REGULATORY CAPITAL (Details)
REGULATORY CAPITAL (Details) - Basel III - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | |
Regulatory capital | ||
Term of risk weights of certain assets | 90 days | |
Increase in capital in non-accrual status for certain assets (as a percent) | 150.00% | |
Initial capital in non-accrual status for certain assets (as a percent) | 100.00% | |
Unused portion of commitments maturity term | 1 year | |
Increase in unused portion of commitments that are not cancellable (as a percent) | 20.00% | |
Initial unused portion of commitments that are not cancellable (as a percent) | 0.00% | |
Increase in risk weight for mortgage servicing and deferred tax assets (as a percent) | 250.00% | |
Initial risk weight for mortgage servicing and deferred tax assets (as a percent) | 100.00% | |
Increase in risk weight for equity exposures (as a percent) | 600.00% | |
Initial risk weight for equity exposures (as a percent) | 0.00% | |
Capital Conservation Buffer | ||
Initial conservation buffer risk weighted asset (as a percent) | 0.625% | |
Subsequent annual increase conservation buffer risk weighted asset (as a percent) | 0.625% | |
Final conservation buffer risk weighted asset (as a percent) | 2.50% | |
Total Capital (to risk weighted assets) | ||
Actual Amount | $ 9,531 | $ 8,172 |
Actual Ratio (as a percent) | 12.90% | 13.30% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 7,394 | $ 6,126 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 10.00% | 10.00% |
Tier 1 Capital (to risk weighted assets) | ||
Actual Amount | $ 8,981 | $ 7,667 |
Actual Ratio (as a percent) | 12.10% | 12.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 5,915 | $ 3,676 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8.00% | 6.00% |
Tier 1 Capital (to average assets) | ||
Actual Amount | $ 8,981 | $ 7,667 |
Actual Ratio (as a percent) | 7.90% | 8.10% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 5,690 | $ 4,733 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5.00% | 5.00% |
Minimum | ||
Regulatory capital | ||
Phase-in period | 2 years | |
Total Capital (to risk weighted assets) | ||
Minimum For Capital Adequacy Purposes Amount | $ 5,915 | $ 4,901 |
Minimum For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
Tier 1 Capital (to risk weighted assets) | ||
Minimum For Capital Adequacy Purposes Amount | $ 4,437 | $ 2,451 |
Minimum For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 4.00% |
Tier 1 Capital (to average assets) | ||
Minimum For Capital Adequacy Purposes Amount | $ 4,552 | $ 3,787 |
Minimum For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
Maximum | ||
Regulatory capital | ||
Phase-in period | 4 years | |
Common Stock | ||
Total Capital (to risk weighted assets) | ||
Actual Amount | $ 8,981 | |
Actual Ratio (as a percent) | 12.10% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 4,806 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.50% | |
Common Stock | Minimum | ||
Total Capital (to risk weighted assets) | ||
Minimum For Capital Adequacy Purposes Amount | $ 3,328 | |
Minimum For Capital Adequacy Purposes Ratio (as a percent) | 4.50% |
OTHER COMPREHENSIVE INCOME (L36
OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Unrealized (losses) gains on securities: | |||||
Net unrealized holding (loss) gain on available-for-sale securities | $ (298) | $ 110 | $ 22 | $ 67 | |
Other comprehensive income (loss), before tax | (298) | 110 | 22 | 67 | |
Income tax expense (benefit) | 113 | (41) | (8) | (25) | |
Other comprehensive (loss) income, net of tax | (185) | $ 69 | 14 | $ 42 | |
Components of accumulated other comprehensive income, included in stockholders' equity | |||||
Net unrealized gain on securities available-for-sale | 81 | 81 | $ 67 | ||
Total accumulated other comprehensive income | $ 81 | $ 81 | $ 67 |
SHARE BASED COMPENSATION (Detai
SHARE BASED COMPENSATION (Details) - USD ($) | May. 19, 2015 | Jun. 30, 2015 | Jun. 30, 2015 |
Share based compensation | |||
Options issued (in shares) | 59,509 | 0 | |
Officers and directors | |||
Share based compensation | |||
Options issued (in shares) | 59,509 | ||
Vesting period (in years) | 7 years | ||
Expiration period (in years) | 10 years | ||
Weighted average fair value of stock options granted (in dollars per share) | $ 4.79 | ||
Assumptions used to determine fair value: | |||
Dividend yield | 0.00% | ||
Risk free rate of return | 2.26% | ||
Expected life of options (years) | 10 years | ||
Expected volatility | 21.57% | ||
Total stock based compensation | $ 4,000 | ||
Unrecognized stock based compensation expense | $ 280,000 | $ 280,000 | |
Remaining period for recognization of unrecognized stock based compensation expenses | 6 years 10 months 21 days | ||
Management and employees | |||
Share based compensation | |||
Stock awards issued (in shares) | 7,669 | ||
Vesting period (in years) | 3 years | ||
Assumptions used to determine fair value: | |||
Total stock based compensation | $ 64,000 | ||
Unrecognized stock based compensation expense | $ 261,000 | $ 261,000 | |
Remaining period for recognization of unrecognized stock based compensation expenses | 2 years 4 months 24 days |
SHARE BASED COMPENSATION (Det38
SHARE BASED COMPENSATION (Details 2) - USD ($) | Nov. 19, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 |
Employee stock ownership plan | ||||||
Number of shares of common stock sold | 661,250 | 668,919 | 668,919 | 679,769 | ||
Issue price of common stock (in dollars per share) | $ 10 | |||||
ESOP | ||||||
Employee stock ownership plan | ||||||
Number of common stock purchased by employee stock purchase plan (in shares) | 27,700 | |||||
Share purchased subsequent to initial public offering | 18,587 | |||||
Loan for stock purchase as a percentage of aggregate purchase price of common stock | 100.00% | |||||
Term of ESOP loan | 6 years | |||||
Remaining principal balance | $ 332,000 | $ 332,000 | ||||
Shares held by the ESOP | 46,287 | 46,287 | ||||
Total compensation expense | $ 26,000 | $ 22,000 | $ 76,000 | $ 69,000 |