Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2020 | Mar. 08, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | MALVERN BANCORP, INC. | |
Entity Central Index Key | 0001550603 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,609,953 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | PA | |
Entity File Number | 000-54835 | |
Entity Tax Identification Number | 45-5307782 | |
Entity Address, Address Line One | 42 Lancaster Avenue | |
Entity Address, City or Town | Paoli | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19301 | |
City Area Code | 610 | |
Local Phone Number | 644-9400 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MLVF | |
Security Exchange Name | NASDAQ |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
ASSETS | ||
Cash and due from depository institutions | $ 83,764 | $ 16,386 |
Interest bearing deposits in depository institutions | 25,458 | 45,053 |
Cash and Cash Equivalents | 109,222 | 61,439 |
Investment securities available for sale, at fair value (amortized cost of $35,239 and $31,658, respectively) | 35,224 | 31,541 |
Investment securities held to maturity (fair value of $14,745 and $15,608, respectively) | 14,161 | 14,970 |
Restricted stock, at cost | 9,327 | 9,622 |
Loans receivable, net of allowance for loan losses of $13,035 and $12,433, respectively | 990,346 | 1,026,894 |
Other real estate owned | 5,796 | 5,796 |
Accrued interest receivable | 4,051 | 3,677 |
Operating lease right-of-use assets | 2,479 | 2,638 |
Property and equipment, net | 6,154 | 6,274 |
Deferred income taxes | 3,601 | 3,680 |
Bank-owned life insurance | 25,564 | 25,400 |
Other assets | 14,999 | 16,344 |
Total Assets | 1,220,924 | 1,208,275 |
Deposits: | ||
Deposits-non-interest-bearing | 49,264 | 50,422 |
Deposits-interest-bearing | 851,201 | 840,484 |
Total Deposits | 900,465 | 890,906 |
FHLB advances | 130,000 | 130,000 |
Secured borrowing | 4,225 | |
Other short-term borrowing | 5,000 | |
Subordinated debt | 24,816 | 24,776 |
Advances from borrowers for taxes and insurance | 1,881 | 1,741 |
Accrued interest payable | 1,078 | 728 |
Operating lease liabilities | 2,512 | 2,671 |
Other liabilities | 11,906 | 12,635 |
Total Liabilities | 1,077,658 | 1,067,682 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued | ||
Common stock, $0.01 par value, 50,000,000 shares authorized; 7,804,469 and 7,609,953 shares issued and outstanding, respectively, at December 31, 2020 and 7,804,469 and 7,609,953 shares issued and outstanding, respectively, at September 30, 2020 | 76 | 76 |
Additional paid-in-capital | 85,195 | 85,127 |
Retained earnings | 62,661 | 60,388 |
Unearned Employee Stock Ownership Plan (ESOP) shares | (1,010) | (1,047) |
Accumulated other comprehensive loss | (793) | (1,088) |
Treasury stock, at cost: 194,516 shares and 194,516 shares at December 31, 2020 and September 30, 2020, respectively | (2,863) | (2,863) |
Total Shareholders’ Equity | 143,266 | 140,593 |
Total Liabilities and Shareholders’ Equity | $ 1,220,924 | $ 1,208,275 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Statement Of Financial Position [Abstract] | ||
Investment securities available for sale, amortized cost | $ 35,239 | $ 31,658 |
Investment securities held to maturity, fair value | 14,745 | 15,608 |
Allowance for loan losses | $ 13,035 | $ 12,433 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 7,804,469 | 7,804,469 |
Common stock, outstanding | 7,609,953 | 7,609,953 |
Treasury stock, shares | 194,516 | 194,516 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest and Dividend Income | ||
Loans, including fees | $ 10,076 | $ 10,926 |
Investment securities, taxable | 347 | 215 |
Investment securities, tax-exempt | 24 | 39 |
Dividends, restricted stock | 141 | 188 |
Interest-bearing cash accounts | 8 | 472 |
Total Interest and Dividend Income | 10,596 | 11,840 |
Interest Expense | ||
Deposits | 2,257 | 3,737 |
Short-term borrowings | 45 | |
Long-term borrowings | 607 | 832 |
Subordinated debt | 383 | 383 |
Total Interest Expense | 3,292 | 4,952 |
Net Interest Income | 7,304 | 6,888 |
Provision for Loan Losses | 550 | 2,150 |
Net Interest Income after Provision for Loan losses | 6,754 | 4,738 |
Other Income | ||
Service charges and other fees | 247 | 259 |
Rental income | 54 | 54 |
Net gains on sale and call of investments | 355 | |
Net gains on sale of loans | 404 | 3 |
Earnings on bank-owned life insurance | 164 | 127 |
Total Other Income | 1,224 | 443 |
Other Expenses | ||
Salaries and employee benefits | 2,272 | 2,125 |
Occupancy expense | 542 | 582 |
Federal deposit insurance premium | 76 | (3) |
Advertising | 32 | 22 |
Data processing | 328 | 278 |
Professional fees | 663 | 441 |
Other real estate owned expense, net | 28 | 71 |
Pennsylvania shares tax | 170 | 170 |
Other operating expenses | 861 | 736 |
Total Other Expenses | 4,972 | 4,422 |
Income before income tax expense | 3,006 | 759 |
Income tax expense (benefit) | 733 | (26) |
Net Income | $ 2,273 | $ 785 |
Earnings Per Common Share: | ||
Basic | $ 0.30 | $ 0.10 |
Diluted | $ 0.30 | $ 0.10 |
Weighted Average Common Shares Outstanding: | ||
Basic | 7,525,808 | 7,665,842 |
Diluted | 7,526,376 | 7,665,842 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 2,273 | $ 785 | |
Other Comprehensive Income (Loss), Net of Tax: | |||
Unrealized holding (losses) gains on available-for-sale securities | 457 | 71 | |
Tax effect | (96) | (15) | |
Net of tax amount | 361 | 56 | |
Reclassification adjustment for net gains arising during the period | [1] | (355) | |
Tax effect | 74 | ||
Net of tax amount | (281) | ||
Adjustment for loss recorded on replacement of derivative | (2) | ||
Amortization of unrealized holding losses on securities transferred from available-for-sale to held-to-maturity | [2] | 1 | 1 |
Net of tax amount | 1 | 1 | |
Fair value adjustments on derivatives | 273 | 91 | |
Tax effect | (57) | (19) | |
Net of tax amount | 216 | 72 | |
Total other comprehensive income | 295 | 129 | |
Total comprehensive income | $ 2,568 | $ 914 | |
[1] | Amounts are included in net gains on sale of investments on the Consolidated Statements of Operations in total other income. | ||
[2] | Amounts are included in interest and dividends on investment securities on the Consolidated Statements of Operations. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Unearned ESOP Shares [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Balance at beginning at Sep. 30, 2019 | $ 142,508 | $ 78 | $ 84,783 | $ 59,744 | $ (1,192) | $ (569) | $ (336) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 785 | 785 | |||||
Other comprehensive income | 129 | 129 | |||||
Committed to be released ESOP shares | 81 | 45 | 36 | ||||
Stock based compensation | 32 | 32 | |||||
Balance at ending at Dec. 31, 2019 | 143,535 | 78 | 84,860 | 60,529 | (1,156) | (440) | (336) |
Balance at beginning at Sep. 30, 2020 | 140,593 | 76 | 85,127 | 60,388 | (1,047) | (1,088) | (2,863) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 2,273 | 2,273 | |||||
Other comprehensive income | 295 | 295 | |||||
Committed to be released ESOP shares | 53 | 16 | 37 | ||||
Stock based compensation | 52 | 52 | |||||
Balance at ending at Dec. 31, 2020 | $ 143,266 | $ 76 | $ 85,195 | $ 62,661 | $ (1,010) | $ (793) | $ (2,863) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - shares | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Committed to be released ESOP shares | 3,600 | 3,600 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Cash Flows from Operating Activities | |||
Net Income | $ 2,273,000 | $ 785,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 170,000 | 187,000 | |
Provision for Loan Losses | 550,000 | 2,150,000 | $ 10,610,000 |
Deferred income tax expense | 79,000 | 34,000 | |
ESOP expense | 53,000 | 81,000 | |
Stock based compensation | 52,000 | 32,000 | |
Amortization of premiums and discounts on investments securities, net | 95,000 | 181,000 | |
Amortization of loan origination fees and costs | 1,218,000 | 1,535,000 | |
Amortization of mortgage servicing rights | 24,000 | 5,000 | |
Net gain on sale and call of investments securities available-for-sale | (355,000) | ||
Net gain on sale of secondary market loans | (404,000) | (3,000) | |
Proceeds from sale of secondary market loans | 6,632,000 | 73,000 | |
Originations of secondary market loans | (6,228,000) | (70,000) | |
Earnings on bank-owned life insurance | (164,000) | (127,000) | |
(Increase) decrease in accrued interest receivable | (374,000) | 192,000 | |
Increase in accrued interest payable | 350,000 | 293,000 | |
Operating lease liability payments | (172,000) | (166,000) | |
(Decrease) increase in other liabilities | (888,000) | 1,410,000 | |
Decrease in other assets | 1,846,000 | 1,239,000 | |
Amortization of subordinate debt | 40,000 | 39,000 | |
Net Cash Provided by Operating Activities | 4,797,000 | 7,870,000 | |
Investment securities available-for-sale: | |||
Purchases | (10,500,000) | (5,252,000) | |
Sales | 6,830,000 | 0 | |
Maturities, calls and principal repayments | 428,000 | 2,000 | |
Investment securities held-to-maturity: | |||
Maturities, calls and principal repayments | 730,000 | 1,737,000 | |
Net decrease in loans | 34,779,000 | 11,425,000 | |
Net decrease in restricted stock | 295,000 | 14,000 | |
Purchase of property and equipment | (50,000) | (103,000) | |
Net Cash Provided by Investing Activities | 32,512,000 | 7,823,000 | |
Cash Flows from Financing Activities | |||
Net increase (decrease) in deposits | 9,559,000 | (9,992,000) | |
Proceeds for long-term borrowings | 90,000,000 | ||
Repayment of long-term borrowings | (90,000,000) | ||
Repayment of secured borrowings | (4,225,000) | (25,000) | |
Proceeds of other borrowed money | 5,000,000 | ||
Increase in advances from borrowers for taxes and insurance | 140,000 | 583,000 | |
Net Cash Provided by (Used in) Financing Activities | 10,474,000 | (9,434,000) | |
Net Increase in Cash and Cash Equivalents | 47,783,000 | 6,259,000 | |
Cash and Cash Equivalents - Beginning | 61,439,000 | 153,543,000 | 153,543,000 |
Cash and Cash Equivalents - Ending | 109,222,000 | 159,802,000 | $ 61,439,000 |
Supplemental Cash Flows Information | |||
Interest paid | 2,942,000 | 4,614,000 | |
Impact of ASC 842 adoption: | |||
Right-of-use asset | $ 3,279,000 | 3,279,000 | |
Operating lease liability | $ (3,279,000) |
The Company
The Company | 3 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company | Note 1 – The Company Malvern Bancorp, Inc. (the “Company” or “Malvern Bancorp”), a Pennsylvania corporation, is a bank holding company registered under the Bank Holding Company Act of 1956, as amended (the “Holding Company Act”). Malvern Bancorp is the holding company for Malvern Bank, National Association (“Malvern Bank” or the “Bank”), a national bank that was originally organized in 1887 as a federally-chartered savings bank. The Company’s primary business is the ownership and operation of the Bank. The Bank’s principal business consists of attracting deposits from businesses and the general public and investing those deposits, together with borrowings and funds generated from operations, in commercial and multi-family real estate loans, one- to four-family residential real estate loans, construction and development loans, commercial business loans, home equity loans, lines of credit, and other consumer loans. We also invest in and maintain a portfolio of investment securities, primarily comprised of corporate bonds, mortgage-backed securities, U.S. agency and bank qualified municipal obligations. Malvern Bank is one of the oldest banks headquartered on the Philadelphia Main Line. For more than a century, the Bank has been committed to helping people build prosperous communities as a trusted financial partner, forging lasting relationships through teamwork, respect and integrity. The Bank’s primary market niche is providing personalized service to its client base. The Bank conducts business from its headquarters in Paoli, Pennsylvania, a suburb of Philadelphia, and through its nine other banking locations in Chester and Delaware counties, Pennsylvania, Morristown, New Jersey, its New Jersey regional headquarters, and Palm Beach, Florida. The Bank also maintains representative offices in Wellington, Florida and Allentown, Pennsylvania. In preparing the unaudited consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the unaudited consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to change in the near term relate to the determination of the allowance for loan losses, other real estate owned, the evaluation of deferred tax assets, the other-than-temporary impairment evaluation of securities, and the valuation of derivative positions. The unaudited consolidated financial statements have been prepared in conformity with GAAP. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of financial statement presentation. The unaudited condensed consolidated financial statements of the Company include the accounts of the Company and its subsidiaries . All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements present the Company’s financial condition at December 31, 2020 and September 30, 2020 and the results of operations for the three months ended December 31, 2020 and 2019, and cash flows for the three months ended December 31, 2020 and 2019. In management’s opinion, the unaudited condensed consolidated financial statements contain all adjustments, which include normal and recurring adjustments, necessary for a fair presentation of the financial position and results of operations as of the dates and for the interim periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and note disclosures included in the 2020 Annual Report filed with the Securities and Exchange Commission (“SEC”). The consolidated statements of operations for the three months ended December 31, 2020 and the consolidated statements of cash flows for the three months ended December 31, 2020 are not necessarily indicative of the results of operations or cash flows for the full year ending September 30, 2021 or any interim period. Subsequent events have been evaluated through the date of the issuance of the unaudited Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. Operating, Accounting and Reporting Considerations related to COVID-19 The COVID-19 pandemic has negatively impacted the global economy. In response to the crisis, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed by Congress and signed into law on March 27, 2020. The CARES Act provides an estimated $2.2 trillion to fight the COVID-19 pandemic and stimulate the economy by supporting individuals and businesses through loans, grants, tax changes, and other types of relief. Under Section 4013 of the CARES Act, and based upon regulatory guidance promulgated by federal banking regulators, qualifying short-term loan modifications resulting in payment deferrals that are attributable to the adverse impact of COVID-19, are not considered to be troubled debt restructurings (“TDRs”). • Accounting for Loan Modifications – The CARES A ct provides that a financial institution may elect to suspend (1) the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. The suspension is applicable for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. The suspension is not applicable to any adverse impact on the credit of a borrower that is not related to the COVID-19 pandemic. • Paycheck Protection Program – The CARES Act established the Paycheck Protection Program (“PPP”), an expansion of the Small Business Administration’s 7(a) loan program and the Economic Injury Disaster Loan Program (“EIDL”), administrated directly by the Small Business Administration (“SBA”). • Mortgage Forbearance – Under the CARES Act, through the earlier of December 31, 2020, mortgage customers experiencing financial hardship due to COVID-19 may request forbearance on a loan for up to 30 days, with up to two additional 30-day periods at the borrower’s request. Also in response to the COVID-19 pandemic, the Board of Governors of the Federal Reserve System (“FRB”), the Federal Deposit Insurance Corporation (“FDIC”), the National Credit Union Administration (“NCUA”), the Office of the Comptroller of the Currency (“OCC”), and the Consumer Financial Protection Bureau (“CFPB”), in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to: • Accounting for Loan Modifications – Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with the Financial Accounting Standards Board (“FASB”) staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who are current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payments. Loan modifications were made in accordance with Section 4013 of the CARES Act and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions working with customers affected by COVID-19 and therefore were not classified as TDRs. • Past Due Reporting – With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreements. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral. • Nonaccrual Status and Charge-offs – During short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified. Recent Accounting Pronouncements Yet to Be Adopted Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) . The guidance allows for companies to: (1) account for certain contract modifications as a continuation of the existing contract without additional analysis; (2) continue hedge accounting when certain critical terms of a hedging relationship change and assess effectiveness in ways that disregard certain potential sources of ineffectiveness; and (3) make a one-time sale and/or transfer of certain debt securities from held-to-maturity to available-for-sale or trading. This ASU is available for adoption effective immediately, or as of January 1, 2020 or any date thereafter for the Company, and applies prospectively to contract modifications and hedging relationships. The one-time election to sell and/or transfer debt securities classified as held-to-maturity may be made at any time after March 12, 2020. The Company anticipates adopting this ASU and will continue to analyze the provisions of the ASU in connection with ongoing procedures to monitor the work of the Alternative Rates Committee of the FRB and Federal Reserve Bank of New York in identifying an alternative U.S. dollar reference interest rate. It is too early to predict a new rate index replacement, but we anticipate that it will be the Secured Overnight Financing Rate (“SOFR”). The adoption of this new requirement is not expected to have a material impact on the consolidated earnings, financial position or cash flows of the Company. Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740). This ASU identifies, evaluates, and improves areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The ASU is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The adoption of this new requirement is not expected to have a material impact on the consolidated earnings, financial position or cash flows of the Company. Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied currently will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, this ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. In April 2019, the FASB issued ASU 2019-04, Codification Improvements , which provides guidance on accounting for credit losses on accrued interest receivable balances and guidance on including recoveries when estimating the allowance. In May 2019, the FASB issued ASU 2019-05, Targeted Transition Relief, which allows entities with an option to elect fair value for certain instruments upon adoption of Topic 326. This ASU will be effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted . The Bank has a software system in place to assist with the calculation of Current Expected Credit Losses (“CECL”). In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) making this ASU effective for interim and annual periods beginning after December 15, 2022. As such , the Company would be required to implement the ASU on October 1, 2023. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which provides guidance on stakeholders’ specific issues about certain aspects of the amendments in ASU 2016-13. The Company formed a cross functional implementation team to review the requirements of ASU 2016-13 and contracted with a third-party provider to assist in the development and implementation of the revised credit loss methodology. The impact on the consolidated earnings, financial position and cash flows of the Company upon adoption of this ASU are currently unknown. |
Risks and Uncertainties
Risks and Uncertainties | 3 Months Ended |
Dec. 31, 2020 | |
Risks And Uncertainties [Abstract] | |
Risks and Uncertainties | Note 3 – Risks and Uncertainties On March 11, 2020, the World Health Organization declared COVID-19, the disease caused by the novel coronavirus, a pandemic as a result of the global spread of the coronavirus illness. In response to the outbreak, federal and state authorities in the U.S. introduced various measures to try to limit or slow the spread of the virus, including travel restrictions, nonessential business closures, stay-at-home orders, and strict social distancing. The Company activated its “Pandemic Plan” to protect the health of employees and clients, which includes temporarily limiting lobby hours and transitioning some of the Company’s workforce to remote work. The full impact of COVID-19 is unknown and rapidly evolving. It has caused substantial disruption in international and U.S. economies, markets, and employment. The outbreak may have a significant adverse impact on certain industries the Company serves. Because of the significant uncertainties related to the ultimate duration of the COVID-19 pandemic and its potential effects on clients and prospects, and on the national and local economy as a whole, there can be no assurances as to how the crisis may ultimately affect the Company’s loan portfolio. To work with clients impacted by COVID-19, the Company began providing financial hardship relief in the form of payment deferrals and forbearances to consumers and business customers across several lending products, as well as suspension of home foreclosures. The initial payment deferrals and forbearances were expected to cover a period of three months. The Company subsequently approved a second forbearance period for a maximum of 90 additional days. These offers are not classified as TDRs, will not be reported as past due during the deferral period, and do not result in loans being placed on nonaccrual status. As of December 31, 2020, the Company entered into 16 loan modification agreements with respect to $68.9 million worth of loans, representing 6.9 percent of loans outstanding, compared to 43 loan modification agreements with respect to $144.8 million worth of loans, representing 13.9 percent of loans outstanding, as of September 30, 2020. For loans subject to the program, each borrower is required to resume making regularly scheduled loan payments at the end of the modification period and the deferred amounts will be moved to the end of the loan term. The Company participated in the initial PPP when the program was officially launched by the SBA and Treasury Department under the CARES Act. Recognizing the significance of operational risk that this portfolio of loans poses, and the continued complexity and uncertainty surrounding evolving regulatory pronouncements regarding various aspects of the PPP, management reviewed several options for continued servicing of the PPP loan portfolio through forgiveness and beyond. After thoughtful consideration, the Company concluded that it was in the best interests of both the Bank and our PPP borrowers that the loans be serviced by an organization that has the servicing infrastructure in place to support the significant volume and short timeframe involved in the complex and evolving PPP forgiveness process. In that regard, in mid-December, the Bank sold substantially all of its PPP loans to a seasoned and experienced non-bank lender and servicer of SBA loans. In connection with the sale, the Company recognized a $202,000 net gain on the sale of approximately $19.7 million of PPP loans, which was recorded as non-interest income for the period ended December 31, 2020. We are currently working with the same third party in order for our customers to be able to participate in the updated PPP loan program adopted as part of the COVID-19 stimulus bill enacted in December 2020 as part of the 2021 Consolidated Appropriations Act Subsequent to December 31, 2020 a $13.4 million commercial real estate loan classified as substandard loan as of December 31, 2020 was placed on non-accrual status during the quarter ended March 31, 2021, based on additional information received from the borrower. As of December 31, 2020, this loan was current and borrower was making payments in accordance with loan’s contractual terms. |
Non-Interest Income
Non-Interest Income | 3 Months Ended |
Dec. 31, 2020 | |
Noninterest Income [Abstract] | |
Non-Interest Income | Note 4 – Non-Interest Income On October 1, 2018, the Company adopted the amendments of ASU 2014-09 - Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified Topic 606. A significant amount of the Company’s revenues is derived from net interest income on financial assets and liabilities, which are excluded from the scope of the amended guidance. Some sources of revenue included within non-interest income fall within the scope of Topic 606, while other sources do not. The Company recognizes revenue when the performance obligations related to the transfer of goods or services under the terms of the contract are satisfied. Some obligations are satisfied at a point in time while others are satisfied over a period of time. Revenue is recognized as the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. When consideration includes a variable component, the amount of consideration attributable to variability is included in the transaction price only to the extent it is probable that significant revenue recognized will not be reversed when uncertainty associated with the variable consideration is subsequently resolved. The Company’s contracts generally do not contain terms that require significant judgement to determine the variability impacting the transaction price. The Company has included the following table regarding the Company’s non-interest income for the periods presented: Three Months Ended December 31, 2020 2019 (In thousands) Rental income $ 54 $ 54 Net gains on sale and call of investments 355 - Net gains on sale of loans 404 3 Earnings on bank-owned life insurance 164 127 Non-interest income within the scope of other GAAP topics $ 977 $ 184 ATM fees $ 3 $ 2 Credit card fee income 5 6 DDA fee income 22 30 DDA service fees 24 19 Debit card fees 64 66 Other loan fee income 72 77 Other fee income 55 57 Other non-interest income 2 2 Non-interest income from contracts with customers $ 247 $ 259 Total Non-interest Income $ 1,224 $ 443 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 5 – Earnings Per Share Basic earnings per common share is computed based on the weighted average number of shares outstanding reduced by unearned Employee Stock Ownership Plan (“ESOP”) shares. Diluted earnings per share is computed based on the weighted average number of shares outstanding and common stock equivalents (“CSEs”) that would arise from the exercise of dilutive securities, reduced by unearned ESOP shares. During the three months ended December 31, 2020, there were no restricted shares issued . There were no stock options granted during the three months ended December 31, 2020 , which are considered CSEs. The following table sets forth the composition of the weighted average shares (denominator) used in the earnings per share computations: Three Months Ended December 31, 2020 2019 (In thousands, except share data) Net Income $ 2,273 $ 785 Weighted average shares outstanding 7,609,953 7,764,383 Average unearned ESOP shares (84,145 ) (98,541 ) Basic weighted average shares outstanding 7,525,808 7,665,842 Plus: effect of potential dilutive common stock equivalents - stock options 568 - Diluted weighted average common shares outstanding 7,526,376 7,665,842 Earnings per common share: Basic $ 0.30 $ 0.10 Diluted $ 0.30 $ 0.10 |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 3 Months Ended |
Dec. 31, 2020 | |
Employee Stock Ownership Plan E S O P Shares In E S O P [Abstract] | |
Employee Stock Ownership Plan | Note 6 – Employee Stock Ownership Plan The Company maintains an ESOP for substantially all of its full-time employees. The current ESOP trustee is Pentegra. Shares of the Company’s common stock purchased by the ESOP are held until released for allocation to participants. Shares released are allocated to each eligible participant based on the ratio of each such participant’s base compensation to the total base compensation of all eligible plan participants. As the unearned shares are committed to be released and allocated among participants, the Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they become committed to be released. To the extent that the fair value of the ESOP shares released differs from the cost of such shares, the difference is charged or credited to additional paid-in capital. During the period from May 20, 2008 to September 30, 2008, the ESOP purchased 241,178 shares of Company common stock for approximately $2.6 million, at an average price of $10.86 per share, which was funded by a loan from Malvern Federal Bancorp, Inc. (the Company’s predecessor). The ESOP loan, which bears an interest rate of 5%, is being repaid in quarterly installments through 2026 principally from the Bank’s contributions to the ESOP. released to participants proportionately as the ESOP loan is repaid. During each of the three months ended December 31, 2020 and 2019, there were 3,600 shares, committed to be released. At December 31, 2020, there were 82,365 unallocated shares and 176,853 allocated shares held by the ESOP. The unallocated shares had an aggregate fair value of approximately $1.3 million at December 31, |
Investment Securities
Investment Securities | 3 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | Note 7 - Investment Securities The Company’s investment securities are classified as available-for-sale or held-to-maturity at December 31, 2020 and at September 30, 2020. Investment securities available-for-sale are reported at fair value with unrealized gains or losses included in equity, net of tax. Accordingly, the carrying value of such securities reflects their fair value at the balance sheet date. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. Held-to-maturity securities, which are carried at amortized cost, are investments where there is positive intent and ability to hold to maturity. Transfers of debt securities from the available-for-sale category to the held-to-maturity category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer remains in accumulated other comprehensive income and in the carrying value of the held-to-maturity investment security. Premiums or discounts on investment securities are amortized or accreted using the effective interest method over the life of the security as an adjustment of yield. Unrealized holding gains or losses that remain in accumulated other comprehensive income are amortized or accreted over the remaining life of the security as an adjustment of yield, offsetting the related amortization of the premium or accretion of the discount. The following tables present information related to the Company’s investment securities at December 31, 2020 and September 30, 2020: December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Investment Securities Available-for-Sale: U.S. government agencies $ 5,012 $ 8 $ - $ 5,020 State and municipal obligations 2,675 3 - 2,678 Single issuer trust preferred security 1,000 - (92 ) 908 Corporate debt securities 25,032 222 (156 ) 25,098 Mutual funds 1,520 - - 1,520 Total $ 35,239 $ 233 $ (248 ) $ 35,224 Investment Securities Held-to-Maturity: State and municipal obligations $ 1,785 $ 128 $ - $ 1,913 Corporate debt securities 3,469 233 - 3,702 Mortgage-backed securities: Collateralized mortgage obligations (“CMO”), fixed-rate 8,907 223 - 9,130 Total $ 14,161 $ 584 $ - $ 14,745 Total investment securities $ 49,400 $ 817 $ (248 ) $ 49,969 September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Investment Securities Available-for-Sale: U.S. government agencies $ 5,025 $ 15 $ - $ 5,040 State and municipal obligations 3,101 4 - 3,105 Single issuer trust preferred security 1,000 - (75 ) 925 Corporate debt securities 21,009 182 (243 ) 20,948 Mutual fund 1,523 - - 1,523 Total $ 31,658 $ 201 $ (318 ) $ 31,541 Investment Securities Held-to-Maturity: State and municipal obligations $ 1,794 $ 129 $ - $ 1,923 Corporate debt securities 3,498 260 - 3,758 Mortgage-backed securities: CMO, fixed-rate 9,678 249 - 9,927 Total $ 14,970 $ 638 $ - $ 15,608 Total investment securities $ 46,628 $ 839 $ (318 ) $ 47,149 For t he three months ended December 31, 2020, proceeds of available-for-sale investment securities sold amounted to approximately $6.8 million. There were gains of approximately $355,000 associated with these sales. There were no available-for-sale investment securities sold during the three months ended December 31, 2019. The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category, and the length of time individual securities have been in a continuous unrealized loss position at December 31, 2020 and September 30, 2020 : December 31, 2020 Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Investment Securities Available for Sale: Single issuer trust preferred security $ - $ - $ 908 $ (92 ) $ 908 $ (92 ) Corporate debt securities 2,495 (5 ) 3,349 (151 ) 5,844 (156 ) Total investment securities $ 2,495 $ (5 ) $ 4,257 $ (243 ) $ 6,752 $ (248 ) September 30, 2020 Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Investment Securities Available for Sale: Single issuer trust preferred security $ - $ - $ 925 $ (75 ) $ 925 $ (75 ) Corporate debt securities 4,426 (74 ) 3,330 (169 ) 7,756 (243 ) Total investment securities $ 4,426 $ (74 ) $ 4,255 $ (244 ) $ 8,681 $ (318 ) As of December 31, 2020, the estimated fair value of the securities disclosed above was primarily dependent upon the movement in market interest rates, particularly given the inherent credit risk associated with these securities. These investment securities are comprised of securities that are rated investment grade by at least one bond credit rating service. Although the fair value will fluctuate as market interest rates move, management believes that these fair values will recover as the underlying portfolios mature and are reinvested in market rate yielding investments. As of December 31, 2020, the Company held Investment securities having a carrying value of approximately $9.4 million and $4.6 million at December 31, 2020 and September 30, 2020, respectively, were pledged to secure deposits. No investment securities were pledged to secure hedges at December 31, 2020 or September 30, 2020. The following table presents information for investment securities at December 31, 2020, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. December 31, 2020 Amortized Cost Fair Value (In thousands) Available-for-Sale: Over 1 year through five years $ 6,675 $ 6,528 After 5 years through ten years 22,052 22,178 Over 10 years 6,512 6,518 Total $ 35,239 $ 35,224 Held-to-Maturity: Over 1 year through five years $ 4,581 $ 4,892 After 5 years through ten years 1,098 1,161 Mortgage-backed securities: CMO, fixed-rate 8,482 8,692 Total $ 14,161 $ 14,745 Total investment securities $ 49,400 $ 49,969 |
Loans Receivable and Related Al
Loans Receivable and Related Allowance for Loan Losses | 3 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans Receivable and Related Allowance for Loan Losses | Note 8 - Loans Receivable and Related Allowance for Loan Losses Loans receivable in the Company’s portfolio consisted of the following at the dates indicated below: December 31, 2020 September 30, 2020 (In thousands) Residential mortgage $ 232,481 $ 242,090 Construction and Development: Residential and commercial 73,000 65,703 Land 3,648 3,110 Total Construction and Development 76,648 68,813 Commercial: Commercial real estate 478,808 495,398 Farmland 7,378 7,517 Multi-family 67,457 67,767 Commercial and industrial 101,852 116,584 Other 10,010 10,142 Total Commercial 665,505 697,408 Consumer: Home equity lines of credit 16,389 17,128 Second mortgages 9,097 10,711 Other 2,388 2,851 Total Consumer 27,874 30,690 Total loans 1,002,508 1,039,001 Deferred loan fees and costs, net 873 326 Allowance for loan losses (13,035 ) (12,433 ) Total loans receivable, net $ 990,346 $ 1,026,894 The following tables summarize the primary classes of the allowance for loan losses (“ALLL”), segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment, as of December 31, 2020 and September 30, 2020. Activity in the ALLL is presented for the three months ended December 31, 2020 and 2019 and the fiscal year ended September 30, 2020: Construction and Development Commercial Consumer Residential Mortgage Residential and Commercial Land Commercial Real Estate Farmland Multi- Family Commercial and Industrial Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total Allowance for loan losses: (In thousands) Three Months Ended December 31, 2020 Beginning balance $ 1,667 $ 465 $ 23 $ 8,682 $ 47 $ 511 $ 578 $ 51 $ 130 $ 196 $ 29 $ 54 $ 12,433 Charge-offs - - - - - - - - - - (1 ) - (1 ) Recoveries 1 - - 1 - - 1 - - 50 - - 53 Provisions (65 ) 43 1 (710 ) 305 (3 ) 21 (1 ) (5 ) (67 ) (3 ) 1,034 550 Ending balance $ 1,603 $ 508 $ 24 $ 7,973 $ 352 $ 508 $ 600 $ 50 $ 125 $ 179 $ 25 $ 1,088 $ 13,035 Ending balance: individually evaluated for impairment $ - $ - $ - $ 209 $ 317 $ - $ - $ - $ - $ 78 $ - $ - $ 604 Ending balance: collectively evaluated for impairment $ 1,603 $ 508 $ 24 $ 7,764 $ 35 $ 508 $ 600 $ 50 $ 125 $ 101 $ 25 $ 1,088 $ 12,431 Loans receivable: Ending balance $ 232,481 $ 73,000 $ 3,648 $ 478,808 $ 7,378 $ 67,457 $ 101,852 $ 10,010 $ 16,389 $ 9,097 $ 2,388 $ 1,002,508 Ending balance: individually evaluated for impairment $ 3,721 $ - $ - $ 25,547 $ 2,287 $ - $ 549 $ - $ 73 $ 365 $ - $ 32,542 Ending balance: collectively evaluated for impairment $ 228,760 $ 73,000 $ 3,648 $ 453,261 $ 5,091 $ 67,457 $ 101,303 $ 10,010 $ 16,316 $ 8,732 $ 2,388 $ 969,966 Construction and Development Commercial Consumer Residential Mortgage Residential and Commercial Land Commercial Real Estate Farmland Multi- Family Commercial and Industrial Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total Allowance for loan losses: (In thousands) Three Months Ended December, 2019 Beginning balance $ 1,364 $ 523 $ 20 $ 5,903 $ 49 $ 369 $ 615 $ 21 $ 122 $ 267 $ 23 $ 819 $ 10,095 Charge-offs - - - (2,288 ) - - - - - (2 ) - - (2,290 ) Recoveries - - - 1 - - - - - 6 - - 7 Provisions (82 ) 62 (2 ) 2,578 (11 ) (173 ) (151 ) 12 (21 ) (36 ) - (26 ) 2,150 Ending balance $ 1,282 $ 585 $ 18 $ 6,194 $ 38 $ 196 $ 464 $ 33 $ 101 $ 235 $ 23 $ 793 $ 9,962 Ending balance: individually evaluated for impairment $ - $ - $ - $ 112 $ - $ - $ - $ - $ - $ 98 $ - $ - $ 210 Ending balance: collectively evaluated for impairment $ 1,282 $ 585 $ 18 $ 6,082 $ 38 $ 196 $ 464 $ 33 $ 101 $ 137 $ 23 $ 793 $ 9,752 Loans receivable: Ending balance $ 234,738 $ 49,095 $ 3,625 $ 521,495 $ 7,563 $ 43,473 $ 99,494 $ 8,569 $ 18,372 $ 13,179 $ 2,160 $ 1,001,763 Ending balance: individually evaluated for impairment $ 3,527 $ - $ - $ 7,649 $ - $ - $ - $ - $ 29 $ 902 $ - $ 12,107 Ending balance: collectively evaluated for impairment $ 231,211 $ 49,095 $ 3,625 $ 513,846 $ 7,563 $ 43,473 $ 99,494 $ 8,569 $ 18,343 $ 12,277 $ 2,160 $ 989,656 Construction and Development Commercial Consumer Residential Mortgage Residential and Commercial Land Commercial Real Estate Farmland Multi- Family Commercial and Industrial Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total Allowance for loan losses: (In thousands) Year Ended September 30, 2020 Beginning balance $ 1,364 $ 523 $ 20 $ 5,903 $ 49 $ 369 $ 615 $ 21 $ 122 $ 267 $ 23 $ 819 $ 10,095 Charge-offs - - - (8,330 ) - - - - (62 ) (3 ) (1 ) - (8,396 ) Recoveries 25 - - 6 - - 2 - 1 88 2 - 124 Provisions 278 (58 ) 3 11,103 (2 ) 142 (39 ) 30 69 (156 ) 5 (765 ) 10,610 Ending balance $ 1,667 $ 465 $ 23 $ 8,682 $ 47 $ 511 $ 578 $ 51 $ 130 $ 196 $ 29 $ 54 $ 12,433 Ending balance: individually evaluated for impairment $ - $ - $ - $ 227 $ - $ - $ - $ - $ - $ 81 $ - $ - $ 308 Ending balance: collectively evaluated for impairment $ 1,667 $ 465 $ 23 $ 8,455 $ 47 $ 511 $ 578 $ 51 $ 130 $ 115 $ 29 $ 54 $ 12,125 Loans receivable: Ending balance $ 242,090 $ 65,703 $ 3,110 $ 495,398 $ 7,517 $ 67,767 $ 116,584 $ 10,142 $ 17,128 $ 10,711 $ 2,851 $ 1,039,001 Ending balance: individually evaluated for impairment $ 3,388 $ - $ - $ 25,926 $ - $ - $ - $ - $ 26 $ 882 $ - $ 30,222 Ending balance: collectively evaluated for impairment $ 238,702 $ 65,703 $ 3,110 $ 469,472 $ 7,517 $ 67,767 $ 116,584 $ 10,142 $ 17,102 $ 9,829 $ 2,851 $ 1,008,779 In assessing the adequacy of the ALLL, it is recognized that the process, methodology and underlying assumptions require a significant degree of judgment. The estimation of loan losses is not precise; the range of factors considered is wide and is significantly dependent upon management’s judgment, including the outlook and potential changes in the economic environment. A ny unallocated portion of the ALLL in conjunction with the quarterly review and changes to the qualitative factors to adjust for the risk due to current economic conditions reflects management’s estimate of probable inherent but undetected losses within the portfolio due to uncertainties in economic conditions, regulatory requirements, delays in obtaining information, including unfavorable information about a borrower’s financial condition, the difficulty in identifying triggering events that correlate perfectly to subsequent loss rates, and risk factors that have not yet manifested themselves in loss allocation factors. . The increase in impaired loans with no specific allowance is primarily due to one commercial farmland loan of approximately $2.3 million. table presents impaired loans in the portfolio by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary, as of December 31, 2020 and September 30, 2020: Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans Recorded Investment Related Allowance Recorded Investment Recorded Investment Unpaid Principal Balance (In thousands) December 31, 2020 Residential mortgage $ - $ - $ 3,721 $ 3,721 $ 3,979 Commercial: Commercial real estate 363 209 25,184 25,547 30,519 Farmland 2,287 317 - 2,287 2,287 Commercial and industrial - - 549 549 549 Consumer: Home equity lines of credit - - 73 73 77 Second mortgages 99 78 266 365 415 Total impaired loans $ 2,749 $ 604 $ 29,793 $ 32,542 $ 37,826 September 30, 2020 Residential mortgage $ - $ - $ 3,388 $ 3,388 $ 3,598 Commercial: Commercial real estate 676 227 25,250 25,926 36,945 Consumer: Home equity lines of credit - - 26 26 30 Second mortgages 101 81 781 882 949 Total impaired loans $ 777 $ 308 $ 29,445 $ 30,222 $ 41,522 The following table presents the average recorded investment in impaired loans in portfolio and related interest income recognized for the three months ended December 31, 2020 and 2019: Three Months Ended December 31, 2020 Average Impaired Loans Interest Income Recognized on Impaired Loans (In thousands) Residential mortgage $ 3,483 $ 15 Commercial: Commercial real estate 25,727 105 Farmland 771 - Commercial and industrial 185 2 Consumer: Home equity lines of credit 74 - Second mortgages 700 1 Total $ 30,940 $ 123 Three Months Ended December 31, 2019 Average Impaired Loans Interest Income Recognized on Impaired Loans (In thousands) Residential mortgage $ 3,532 $ 22 Commercial: Commercial real estate 9,096 15 Consumer: Home equity lines of credit 29 - Second mortgages 845 9 Total $ 13,502 $ 46 The following table presents the classes of the loan portfolio categorized as pass, special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2020 and September 30, 2020: Pass Special Mention Substandard Doubtful Total (In thousands) December 31, 2020: Residential mortgage $ 228,646 $ - $ 3,835 $ - $ 232,481 Construction and Development: Residential and commercial 73,000 - - - 73,000 Land 3,648 - - - 3,648 Commercial: Commercial real estate 392,611 46,790 39,407 - 478,808 Farmland 5,091 - 2,287 - 7,378 Multi-family 58,025 9,432 - - 67,457 Commercial and industrial 94,914 6,277 661 - 101,852 Other 10,010 - - - 10,010 Consumer: Home equity lines of credit 16,232 - 157 - 16,389 Second mortgages 7,966 75 1,056 - 9,097 Other 2,388 - - - 2,388 Total $ 892,531 $ 62,574 $ 47,403 $ - $ 1,002,508 Pass Special Mention Substandard Doubtful Total (In thousands) September 30, 2020: Residential mortgage $ 238,610 $ - $ 3,480 $ - $ 242,090 Construction and Development: Residential and commercial 65,703 - - - 65,703 Land 3,110 - - - 3,110 Commercial: Commercial real estate 422,143 46,892 26,363 - 495,398 Farmland 7,517 - - - 7,517 Multi-family 58,285 9,482 - - 67,767 Commercial and industrial 110,099 6,368 117 - 116,584 Other 10,142 - - - 10,142 Consumer: Home equity lines of credit 16,969 - 159 - 17,128 Second mortgages 9,573 76 1,062 - 10,711 Other 2,851 - - - 2,851 Total $ 945,002 $ 62,818 $ 31,181 $ - $ 1,039,001 The following table presents loans that are no longer accruing interest as of December 31, 2020 and September 30, 2020, by portfolio class: December 31, 2020 September 30, 2020 (In thousands) Non-accrual loans: Residential mortgage $ 1,916 $ 2,036 Commercial: Commercial real estate 14,042 14,414 Consumer: Home equity lines of credit 73 26 Second mortgages 209 254 Total non-accrual loans $ 16,240 $ 16,730 Under the Bank’s loan policy, once a loan has been placed on non-accrual status, we do not resume interest accruals until the loan has been brought current and has maintained a current payment status for not less than six consecutive months. Interest income that would have been recognized on non-accrual loans had they been current in accordance with their original terms was approximately $138,000 for the three months ended December 31, 2020, and three months ended December 31, 2019 Management monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio and categorizing each loan as “current”, meaning payment is received from a borrower by the scheduled due date, or by the length of time a scheduled payment is past due. The following table presents the classes of the loan portfolio categorized by the aging categories described above as of December 31, 2020 and September 30, 2020: Current 30-59 Days Past Due 60-89 Days Past Due 90 Days and More Past Due Total Past Due Total Loans Receivable Loans Receivable > 90 Days and Accruing (In thousands) December 31, 2020: Residential mortgage $ 228,711 $ 1,678 $ 520 $ 1,572 $ 3,770 $ 232,481 $ 710 Construction and Development: Residential and commercial 73,000 - - - - 73,000 - Land 3,648 - - - - 3,648 - Commercial: Commercial real estate 464,949 13,859 - - 13,859 478,808 - Farmland 5,091 2,287 - - 2,287 7,378 - Multi-family 67,457 - - - - 67,457 - Commercial and industrial 98,898 2,954 - - 2,954 101,852 - Other 10,010 - - - - 10,010 - Consumer: Home equity lines of credit 16,230 86 - 73 159 16,389 - Second mortgages 8,669 197 54 177 428 9,097 65 Other 2,387 1 - - 1 2,388 - Total $ 979,050 $ 21,062 $ 574 $ 1,822 $ 23,458 $ 1,002,508 $ 775 Current 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Total Loans Receivable Loans Receivable > 90 Days and Accruing (In thousands) September 30, 2020: Residential mortgage $ 239,623 $ 68 $ 694 $ 1,705 $ 2,467 $ 242,090 $ - Construction and Development: Residential and commercial 65,703 - - - - 65,703 - Land 3,110 - - - - 3,110 - Commercial: Commercial real estate 495,087 - - 311 311 495,398 - Farmland 7,517 - - - - 7,517 - Multi-family 67,767 - - - - 67,767 - Commercial and industrial 116,584 - - - - 116,584 - Other 10,142 - - - - 10,142 - Consumer: Home equity lines of credit 17,080 - - 48 48 17,128 48 Second mortgages 10,325 157 33 196 386 10,711 10 Other 2,850 - 1 - 1 2,851 - Total $ 1,035,788 $ 225 $ 728 $ 2,260 $ 3,213 $ 1,039,001 $ 58 Restructured loans deemed to be TDRs are typically the result of an extension of the loan maturity date or a reduction of the interest rate of the loan to a rate that is below market, a combination of rate and maturity extension, or by other means, including covenant modifications, forbearance and other concessions. However, the Bank generally restructures loans by modifying the payment structure to require payments of interest only for a specified period or by reducing the actual interest rate. Once a loan becomes a TDR, it will continue to be reported as a TDR during the term of the restructure. The Company had 28 and 26 loans classified as TDRs at December 31, 2020 and September 30, 2020, respectively, with an aggregate outstanding balance of $24.4 million and $21.7 million, respectively. At December 31, 2020, these loans were also classified as impaired. 20 of the TDR loans continue to perform under the restructured terms through December 31, 2020 and we continued to accrue interest on such loans through such date. Loans that have been classified as TDRs have modified payment terms and in some cases interest rate from the original agreements and allowed the borrowers, who were experiencing financial difficulty, to make interest only payments for a period of time in order to relieve some of their overall cash flow burden. Some loan modifications classified as TDRs may not ultimately result in the full collection of principal and interest, as modified, and could result in potential incremental losses. These potential incremental losses have been factored into our overall estimate of the ALLL. The level of any defaults will likely be affected by future economic conditions. A default on a TDR loan for purposes of this disclosure occurs when the borrower is 90 days past due or a foreclosure or repossession of the applicable collateral has occurred. TDRs may arise in cases where, due to financial difficulties experienced by the borrower, the Company obtains through physical possession one or more collateral assets in satisfaction of all or part of an existing credit. Once possession is obtained, the Company reclassifies the appropriate portion of the remaining balance of the credit from loans to other real estate owned (“OREO”), which is included within other assets in the Consolidated Statements of Financial Condition. For any residential real estate property collateralizing a consumer mortgage loan, the Company is considered to possess the related collateral only if legal title is obtained upon completion of foreclosure, or the borrower conveys all interest in the residential real estate property to the Company through completion of a deed in lieu of foreclosure or similar legal agreement. Excluding OREO, the Company had $624,000 and $175,000 Total Troubled Debt Restructurings Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months Number of Loans Recorded Investment Number of Loans Recorded Investment (Dollars in thousands) December 31, 2020: Residential mortgage 17 $ 3,359 7 $ 1,553 Commercial: Commercial real estate 5 18,021 1 6,591 Farmland 1 2,287 - - Commercial and industrial 1 549 - - Consumer: Second mortgages 4 156 - - Total 28 $ 24,372 8 $ 8,144 September 30, 2020: Residential mortgage 17 $ 3,435 7 $ 1,617 Commercial: Commercial real estate 5 18,091 1 6,652 Consumer: Second mortgages 4 161 - - Total 26 $ 21,687 8 $ 8,269 The following table reports the performing status of all TDR loans. The performing status is determined by a loan’s compliance with the modified terms: December 31, 2020 September 30, 2020 Performing Non-Performing Performing Non-Performing (In thousands) Residential mortgage $ 1,806 $ 1,553 $ 1,818 $ 1,617 Commercial: Commercial real estate 11,431 6,591 11,439 6,652 Farmland 2,287 - - - Commercial and industrial 549 - - - Consumer: Second mortgages 156 - 161 - Total $ 16,229 $ 8,144 $ 13,418 $ 8,269 The following table shows the new TDRs for the three months ended December 31, 2020 and 2019: For the Three Months Ended December 31, 2020 2019 Number of Contracts Pre- Modifications Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Contracts Pre- Modifications Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment (In thousands) Troubled Debt Restructurings: Residential mortgage - $ - $ - 1 $ 207 $ 207 Commercial: Commercial real estate - $ - $ - 1 $ 295 $ 295 Farmland 1 $ 2,287 $ 2,287 - $ - $ - Commercial and industrial 1 $ 549 $ 549 - $ - $ - Total troubled debt restructurings 2 $ 2,836 $ 2,836 2 $ 502 $ 502 Under Section 4013 of the CARES Act, and separately based upon regulatory guidance promulgated by federal banking regulators (collectively “Interagency Statement”), qualifying short-term loan modifications resulting in payment deferrals that are attributable to the adverse impact of COVID-19, are not considered to be TDRs. As such, the applicable loans are reported as current with regard to payment status and continue to accrue interest during the payment deferral period. had 16 COVID-19 modified loan deferrals totaling approximately $68.9 million. At September 30, 2020, the Company had 43 COVID-19 modified loan deferrals totaling approximately $144.8 million. The following tables set forth the composition of these loans by loan segments as of December 31, 2020 and September 30, 2020: December 31, 2020 Number of Loans Loan Deferment Exposure Gross Loans December 31, 2020 Percentage of Gross Loans on Deferral (Dollars in thousands) Residential mortgage 5 $ 934 $ 232,481 0.09 % Construction and Development: Residential and commercial - - 73,000 0.00 % Land loans - - 3,648 0.00 % Total Construction and Development - - 76,648 0.00 % Commercial: Commercial real estate 7 67,082 478,808 6.69 % Farmland - - 7,378 0.00 % Multi-family 1 717 67,457 0.08 % Commercial and industrial 1 22 101,852 0.00 % Other - - 10,010 0.00 % Total Commercial 9 67,821 665,505 6.77 % Consumer: Home equity lines of credit 1 131 16,389 0.01 % Second mortgages 1 17 9,097 0.00 % Other - - 2,388 0.00 % Total Consumer 2 148 27,874 0.01 % Total loans 16 $ 68,903 $ 1,002,508 6.87 % September 30, 2020 Number of Loans Loan Deferment Exposure Gross Loans September 30, 2020 Percentage of Gross Loans on Deferral (Dollars in thousands) Residential mortgage 5 $ 1,288 $ 242,090 0.12 % Construction and Development: Residential and commercial - - 65,703 0.00 % Land loans - - 3,110 0.00 % Total Construction and Development - - 68,813 0.00 % Commercial: Commercial real estate 21 131,348 495,398 12.64 % Farmland 1 2,288 7,517 0.22 % Multi-family 2 3,718 67,767 0.36 % Commercial and industrial 10 5,547 116,584 0.53 % Other - - 10,142 0.00 % Total Commercial 34 142,901 697,408 13.75 % Consumer: Home equity lines of credit 3 579 17,128 0.06 % Second mortgages 1 17 10,711 0.00 % Other - - 2,851 0.00 % Total Consumer 4 596 30,690 0.06 % Total loans 43 $ 144,785 $ 1,039,001 13.94 % |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Dec. 31, 2020 | |
Regulatory Matters Disclosure [Abstract] | |
Regulatory Matters | Note 9 - Regulatory Matters Regulatory Capital Requirements 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 Company’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 classifications are also subject to qualitative judgments by the regulators about components, risk-weightings and other factors. In J l r iv U S r a a f a e d F r a a r r to l a J n 1 r a a b e b a a r r r m r r for r w R W A ratio b r a a a w r r r a a r a s e a a r r a a a r l r s F m Malvern a a r a of f iv J n 1 e a a a r m a a r a r J n 1 Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of tangible and core capital (as defined in the regulations) to total adjusted tangible assets (as defined) and of risk-based capital (as defined) to risk-weighted assets (as defined). As of December 31, 2020, the Company’s and the Bank’s current capital levels exceed the required capital amounts to be considered “well capitalized” and they also meet the fully-phased in minimum capital requirements, including the related capital conservation buffers, as required by the Basel III capital rules. The following table summarizes the Company’s compliance with applicable regulatory capital requirements as of December 31, 2020 and September 30, 2020: Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2020 Tier 1 Leverage (Core) Capital (to adjusted assets) $ 144,059 11.76 % $ 48,991 4.00 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 144,059 14.30 % 45,347 4.50 % N/A N/A Tier 1 Capital (to risk weighted assets) 144,059 14.30 % 60,462 6.00 % N/A N/A Total Risk Based Capital (to risk weighted assets) 151,478 18.01 % 80,616 8.00 % N/A N/A As of September 30, 2020 Tier 1 Leverage (Core) Capital (to adjusted assets) $ 141,681 11.63 % $ 48,473 4.00 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 141,681 14.00 % 45,528 4.50 % N/A N/A Tier 1 Capital (to risk weighted assets) 141,681 14.00 % 60,704 6.00 % N/A N/A Total Risk Based Capital (to risk weighted assets) 178,972 17.69 % 80,939 8.00 % N/A N/A The following table summarizes the Bank’s compliance with applicable regulatory capital requirements as of December 31, 2020 and September 30, 2020 : Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2020 Tier 1 Leverage (Core) Capital (to adjusted assets) $ 158,399 12.95 % $ 48,929 4.00 % $ 61,162 5.00 % Common Equity Tier 1 Capital (to risk weighted assets) 158,399 15.74 % 45,272 4.50 % 65,393 6.50 % Tier 1 Capital (to risk weighted assets) 158,399 15.74 % 60,363 6.00 % 80,484 8.00 % Total Risk Based Capital (to risk weighted assets) 170,982 17.00 % 80,484 8.00 % 100,605 10.00 % As of September 30, 2020 Tier 1 Leverage (Core) Capital (to adjusted assets) $ 155,575 12.78 % $ 48,685 4.00 % $ 60,856 5.00 % Common Equity Tier 1 Capital (to risk weighted assets) 155,575 15.40 % 45,459 4.50 % 65,663 6.50 % Tier 1 Capital (to risk weighted assets) 155,575 15.40 % 60,612 6.00 % 80,816 8.00 % Total Risk Based Capital (to risk weighted assets) 168,090 16.64 % 80,816 8.00 % 101,020 10.00 % |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Note 10 – Derivatives and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future uncertain cash amounts, the value of which are determined by interest rates. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. At December 31, 2020, such derivatives were used to hedge the variable cash flows associated with FHLB advances. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next twelve months, the Company estimates approximately $787,000 to be reclassified to earnings as an increase to interest expense. The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of twenty months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. These derivatives are not designated as hedges and are not speculative. Rather, these derivatives result from a service the Company provides to certain customers. As the interest rate swaps associated with this program do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition as of December 31, 2020 and September 30, 2020: ` December 31, 2020 Asset derivatives Liability derivatives Notional Amount Fair Value Statement of Financial Condition Location Notional Amount Fair Value Statement of Financial Condition Location (In thousands) Derivatives designated as a hedging instrument: Interest rate swap agreement $ - $ - Other assets $ 90,000 $ 1,017 Other liabilities Derivatives not designated as a hedging instrument: Interest rate swap agreement $ 45,060 $ 7,488 Other assets $ 45,060 $ 7,492 Other liabilities September 30, 2020 Asset derivatives Liability derivatives Notional Amount Fair Value Statement of Financial Condition Location Notional Amount Fair Value Statement of Financial Condition Location (In thousands) Derivatives designated as a hedging instrument: Interest rate swap agreement $ - $ - Other assets $ 90,000 $ 1,291 Other liabilities Derivatives not designated as a hedging instrument: Interest rate swap agreement $ 45,162 $ 8,752 Other assets $ 45,162 $ 8,756 Other liabilities The tables below present the d erivative assets and liabilities offsetting as of December 31, 2020 and September 30, 2020 : Offsetting of Derivative Assets (In thousands) as of December 31, 2020 Gross Amounts Not Offset in the Statements of Financial Condition Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets presented in the Statement of Financial Condition Financial Instruments Cash Collateral Received Net Amount Derivatives $ 7,488 $ - $ 7,488 $ - $ - $ 7,488 Offsetting of Derivative Liabilities (In thousands) as of December 31, 2020 Gross Amounts Not Offset in the Statements of Financial Condition Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Liabilities presented in the Statement of Financial Condition Financial Instruments Cash Collateral Posted Net Amount Derivatives $ 8,509 $ - $ 8,509 $ 1,230 $ 12,857 $ (5,578 ) Offsetting of Derivative Assets (In thousands) as of September 30, 2020 Gross Amounts Not Offset in the Statements of Financial Condition Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets presented in the Statement of Financial Condition Financial Instruments Cash Collateral Received Net Amount Derivatives $ 8,752 $ - $ 8,752 $ - $ - $ 8,752 Offsetting of Derivative Liabilities (In thousands) as of September 30, 2020 Gross Amounts Not Offset in the Statements of Financial Condition Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Liabilities presented in the Statement of Financial Condition Financial Instruments Cash Collateral Posted Net Amount Derivatives $ 10,047 $ - $ 10,047 $ 1,498 $ 12,857 $ (4,308 ) The tables below present the net gains (losses) recorded in accumulated other comprehensive loss and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the three months ended December 31, 2020 and 2019: Three Months Ended December 31, 2020 Amount of Loss Recognized in OCI on Derivative Amount of Loss Reclassified from OCI to Interest Expense (In thousands) Interest rate swap agreements $ (8 ) $ (280 ) Total derivatives (8 ) (280 ) Three Months Ended December 31, 2019 Amount of Gain Recognized in OCI on Derivative Amount of Loss Reclassified from OCI to Interest Expense (In thousands) Interest rate swap agreements $ 77 $ (14 ) Total derivatives 77 (14 ) The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three months ended December 31, 2020 and 2019: Three Months Ended December 31, 2020 Consolidated Statements of Operations Amount of Gain (Loss) Recognized in Income on derivatives (In thousands) Derivatives not designated as a hedging instrument: Interest rate swap agreement Other income $ 1 Total $ 1 Three Months Ended December 31, 2019 Consolidated Statements of Operations Amount of Loss Recognized in Income on derivatives (In thousands) Derivatives not designated as a hedging instrument: Interest rate swap agreement Other income $ (3 ) Total $ (3 ) The Company has agreements with each of its derivative counterparties that contain a provision providing that if the Company defaults on any of its indebtedness, including defaults where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. At December 31, 2020 and September 30, 2020, the fair value of derivatives was in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements. There were no adjustments for nonperformance risk at December 31, 2020 and September 30, 2020. $12.9 million |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 11 - Fair Value Measurements The Company follows FASB ASC Topic 820 Fair Value Measurement The Company groups its assets at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1— valuation is based upon quoted prices for identical instruments traded in active markets. Level 2—valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3— v aluation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset. The Company bases its fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. Fair value measurements for assets where there exists limited or no observable market data and, therefore, are based primarily upon the Company’s or other third-party’s estimates, are often calculated based on the characteristics of the asset, the economic and competitive environment and other factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future valuations. The Company monitors and evaluates available data to perform fair value measurements on an ongoing basis and recognizes transfers among the levels of the fair value hierarchy as of the date event or a change in circumstances that affects the valuation method chosen. There were no changes in valuation technique or transfers between levels at December 31, 2020 or September 30, 2020. The tables below present the balances of assets measured at fair value on a recurring basis as of December 31, 2020 and September 30, 2020: December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investment securities available for sale: Debt securities: U.S. government agencies $ 5,020 $ - $ 5,020 $ - State and municipal obligations 2,678 - 2,678 - Single issuer trust preferred security 908 - 908 - Corporate debt securities 25,098 - 25,098 - Mutual funds 1,520 1,020 - 500 Total investment securities available for sale $ 35,224 $ 1,020 $ 33,704 $ 500 Derivative instruments $ 7,488 $ - $ 7,488 $ - Liabilities: Derivative instruments $ 8,509 $ - $ 8,509 $ - September 30, 2020 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investment securities available for sale: Debt securities: U.S. government agencies $ 5,040 $ - $ 5,040 $ - State and municipal obligations 3,105 - 3,105 - Single issuer trust preferred security 925 - 925 - Corporate debt securities 20,948 - 20,948 - Mutual fund 1,523 1,023 - 500 Total investment securities available for sale $ 31,541 $ 1,023 $ 30,018 $ 500 Derivative instruments $ 8,752 $ - $ 8,752 $ - Liabilities: Derivative instruments $ 10,047 $ - $ 10,047 $ - The following tables present additional information about the securities available-for-sale measured at fair value on a recurring basis and for which the Company utilized significant unobservable inputs (Level 3 inputs) to determine fair value for the three months ended December 31, 2020 and December 31, 2019. Fair value measurements using significant unobservable inputs (Level 3) (In thousands) Balance, October 1, 2020 $ 500 Payments received - Total gains or losses (realized/unrealized) Included in earnings - Included in other comprehensive income - Purchases - Transfers in and/or out of Level 3 - Balance, December 31, 2020 $ 500 Fair value measurements using significant unobservable inputs (Level 3) (In thousands) Balance, October 1, 2019 $ 250 Payments received - Total gains or losses (realized/unrealized) Included in earnings - Included in other comprehensive income - Purchases 250 Transfers in and/or out of Level 3 - Balance, December 31, 2019 $ 500 The majority of the Company’s available for sale investment securities are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. From time to time, the Company validates prices supplied by the independent pricing service by comparison to prices obtained from third-party sources or derived using internal models. For assets measured at fair value on a nonrecurring basis that were still held at the end of the period, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of the related individual assets or portfolios at December 31, 2020 and September 30, 2020: December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Other real estate owned $ 5,796 $ - $ - $ 5,796 Impaired loans (1) 9,597 - - 9,597 Total $ 15,393 $ - $ - $ 15,393 December 31, 2020 Fair Value at December 31, 2020 Valuation Technique Unobservable Input Range/(Weighted Average) (Dollars in thousands) Other real estate owned $ 5,796 Appraisal of Collateral(2) Collateral discount(3) 0%/(0%) Impaired loans (1) 9,597 Appraisal of Collateral(2) Collateral discount(3) (2.0%)-20.0%/(1.4%) Total $ 15,393 (1) Consisted of seven loans with an aggregate balance of $10.2 million and with $604,000 in specific loan loss allowance. (2) Fair value is generally determined through independent appraisals of the underlying collateral primarily using comparable sales. (3) Appraisals may be adjusted by management for qualitative factors such as time, changes in economic conditions and estimated liquidation expense. September 30, 2020 Total Level 1 Level 2 Level 3 (In thousands) Other real estate owned $ 5,796 $ - $ - $ 5,796 Impaired loans (1) 7,920 - - 7,920 Total $ 13,716 $ - $ - $ 13,716 September 30, 2020 Fair Value at September 30, 2020 Valuation Technique Unobservable Input Range/(Weighted Average) (Dollars in thousands) Other real estate owned $ 5,796 Appraisal of Collateral(2) Collateral discount(3) 0%/(0%) Impaired loans (1) 7,920 Appraisal of Collateral(2) Collateral discount(3) (2.0%) - 20.0%/(1.4%) Total $ 13,716 (1) Consisted of seven loans with an aggregate balance of $8.2 million and with $308,000 in specific loan loss allowance. (2) Fair value is generally determined through independent appraisals of the underlying collateral primarily using comparable sales. ( 3 ) Appraisals may be adjusted by management for qualitative factors such as time, changes in economic conditions and estimated liquidation expense. At December 31, 2020 and September 30, 2020, the Company did not have any additions to our mortgage servicing assets. At December 31, 2020 the Company sold loans with servicing released. At September 30, 2020, the Company only sold loans with servicing released. The following disclosure of the estimated fair value of financial instruments is made in accordance with the requirements of FASB ASC 825. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methods. However, considerable judgment is necessarily required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. FASB ASC 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company . The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2020 and September 30, 2020. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since December 31, 2020 and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. The following assumptions were used to estimate the fair value of the Company’s financial instruments: Cash and Cash Equivalents —These assets are carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization . Investment Securities —Investment and mortgage-backed securities available for sale (carried at fair value), and equity securities (carried at fair value) are measured at fair value on a recurring basis. Fair value measurements for these securities are typically obtained from independent pricing services that we have engaged for this purpose. When available, we, or our independent pricing service, use quoted market prices to measure fair value. If market prices are not available, fair value measurement is based upon models that incorporate available trade, bid and other market information and for structured securities, cash flow and, when available, loan performance data. Because many fixed income securities do not trade on a daily basis, our independent pricing service’s applications apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare evaluations. For each asset class, pricing applications and models are based on information from market sources and integrate relevant credit information. All of our securities available for sale are valued using either of the foregoing methodologies to determine fair value adjustments recorded to our financial statements. Loans Receivable —We do not record loans at fair value on a recurring basis. As such, valuation techniques discussed herein for loans are primarily for estimating fair value for FASB ASC 825 disclosure purposes. However, from time to time, we record nonrecurring fair value adjustments to loans to reflect partial write-downs for impairment or the full charge-off of the loan carrying value. The valuation of impaired loans is discussed below. The fair value estimate for FASB ASC 825 purposes differentiates loans based on their financial characteristics, such as product classification, loan category, pricing features and remaining maturity. Prepayment and credit loss estimates are evaluated by loan type and rate. The fair value of loans is estimated by discounting contractual cash flows using discount rates based on current industry pricing, adjusted for prepayment and credit loss estimates. Impaired Loans —Impaired loans are valued utilizing independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience. The appraisals are adjusted downward by management, as necessary, for changes in relevant valuation factors subsequent to the appraisal date and are considered Level 3 inputs . Accrued Interest Receivable —This asset is carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization . Restricted Stock —Although restricted stock is an equity interest in the FHLB, it is carried at cost because it does not have a readily determinable fair value as its ownership is restricted and it lacks a market. The estimated fair value approximates the carrying amount. Other Real Estate Owned —Assets acquired through foreclosure or deed in lieu of foreclosure are recorded at estimated fair value less estimated selling costs when acquired, thus establishing a new cost basis. Fair value is generally based on independent appraisals. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience, and are considered Level 3 inputs. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the ALLL. If the estimated fair value of the asset declines, a write-down is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of, among other factors, changes in the economic conditions. Deposits — Deposit liabilities are carried at cost. As such, valuation techniques discussed herein for deposits are primarily for estimating fair value for FASB ASC 825 disclosure purposes. The fair value of deposits is discounted based on rates available for borrowings of similar maturities. A decay rate is estimated for non-time deposits. The discount rate for non-time deposits is adjusted for servicing costs based on industry estimates . Borrowings —Advances from the FHLB are carried at amortized cost. However, we are required to estimate the fair value of long-term debt under FASB ASC 825. The fair value is based on the contractual cash flows discounted using rates currently offered for new notes with similar remaining maturities. Subordinated Debt —The calculation of fair value in Level 2 is based on observable market values where available. Derivatives — The fair value of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rate, and volatility factors to value the position. The majority of market inputs is actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services . Accrued Interest Payable —This liability is carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization. Commitments to Extend Credit and Letters of Credit — The majority of the Company’s commitments to extend credit and letters of credit carry current market interest rates if converted to loans and are not included in the table below. Because commitments to extend credit and letters of credit are generally unassignable by either the Bank or the borrower, they only have value to the Company and the borrower. The estimated fair value approximates the recorded deferred fee amounts, which are not significant. Mortgage Servicing Rights —The fair value of mortgage servicing rights is based on observable market prices when available or the present value of expected future cash flows when not available. Assumptions, such as loan default rates, costs to service, and prepayment speeds significantly affect the estimate of future cash flows. Mortgage servicing rights are carried at the lower of cost or fair value . The carrying amount and estimated fair value of the Company’s financial instruments as of December 31, 2020 and September 30, 2020 are presented below: December 31, 2020 Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Cash and cash equivalents $ 109,222 $ 109,222 $ 109,222 $ - $ - Investment securities available-for-sale 35,224 35,224 1,020 33,704 500 Investment securities held-to-maturity 14,161 14,745 - 14,745 - Loans receivable, net (including impaired loans) 990,346 998,545 - - 998,545 Accrued interest receivable 4,051 4,051 - 4,051 - Restricted stock 9,327 9,327 - 9,327 - Mortgage servicing rights (included in Other Assets) 87 87 - 87 - Derivatives (included in Other Assets) 7,488 7,488 - 7,488 - Financial liabilities: Savings accounts 46,531 46,531 - 46,531 - Checking and NOW accounts 352,799 352,799 - 352,799 - Money market accounts 303,796 303,796 - 303,796 - Certificates of deposit 197,339 199,959 - 199,959 - Borrowings (excluding sub debt) 135,000 135,706 - 135,706 - Subordinated debt 24,816 24,845 - 24,845 - Derivatives (included in Other Liabilities) 8,509 8,509 - 8,509 - Accrued interest payable 1,078 1,078 - 1,078 - September 30, 2020 Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Cash and cash equivalents $ 61,439 $ 61,439 $ 61,439 $ - $ - Investment securities available-for-sale 31,541 31,541 1,023 30,018 500 Investment securities held-to-maturity 14,970 15,608 - 15,608 - Loans receivable, net (including impaired loans) 1,031,392 1,039,981 - - 1,039,981 Accrued interest receivable 3,677 3,677 - 3,677 - Restricted stock 9,622 9,622 - 9,622 - Mortgage servicing rights (included in Other Assets) 111 111 - 111 - Derivatives (included in Other Assets) 8,752 8,752 - 8,752 - Financial liabilities: Savings accounts 45,072 45,072 - 45,072 - Checking and NOW accounts 354,104 354,104 - 354,104 - Money market accounts 277,711 277,711 - 277,711 - Certificates of deposit 214,019 217,212 - 217,212 - Borrowings (excluding sub debt) 134,225 135,101 - 135,101 - Subordinated debt 24,776 25,030 - 25,030 - Derivatives (included in Other Liabilities) 10,047 10,047 - 10,047 - Accrued interest payable 728 728 - 728 - |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 3 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Note 12 – Comprehensive Income (Loss) The components of accumulated other comprehensive loss included in shareholders’ equity are as follows: December 31, 2020 September 30, 2020 (In thousands) Net unrealized holding losses on available-for-sale securities $ (15 ) $ (118 ) Tax effect 3 25 Net of tax amount (12 ) (93 ) Fair value adjustments on derivatives (989 ) (1,260 ) Tax effect 208 265 Net of tax amount (781 ) (995 ) Total accumulated other comprehensive loss $ (793 ) $ (1,088 ) Other comprehensive income and related tax effects are presented in the following table: Three Months Ended December 31, 2020 2019 (In thousands) Net unrealized holding (losses) gains on available-for-sale securities $ 457 $ 71 Net realized gain on securities available-for-sale (355 ) - Amortization of unrealized holding losses on securities transferred from available-for-sale to held-to-maturity 1 1 Adjustment for loss recorded on replacement of derivative (2 ) - Fair value adjustments on derivatives 273 91 Other comprehensive income before taxes 374 163 Tax effect (79 ) (34 ) Total other comprehensive income $ 295 $ 129 |
Equity Based Incentive Compensa
Equity Based Incentive Compensation Plan | 3 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Based Incentive Compensation Plan | Note 13 – Equity Based Incentive Compensation Plan The Company maintains the Malvern Bancorp, Inc. 2014 Long-Term Incentive Compensation Plan (the “2014 Plan”), which permits the grant of long-term incentive and other stock and cash awards. The purpose of the 2014 Plan is to promote the success of the Company and the Bank by providing incentives to officers, employees and directors of the Company and the Bank that will link their personal interests to the financial success of the Company and to growth in shareholder value. The maximum total number of shares of the Company’s common stock available for grants under the 2014 Plan is 400,000. As of December 31, 2020, there were 318,651 remaining shares available for future grants. Restricted stock and option awards granted vest annually in 20% increments beginning on the one year anniversary of the grant date, and accelerate upon a change in control of the Company. The options generally expire ten years from the date of grant. All issuances are subject to forfeiture if the recipient leaves or is terminated prior to the award’s vesting. Shares of restricted stock have the same dividend and voting rights as common stock while stock options do not. All awards are issued at fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant. The Company did not grant any stock options during the three months ended December 31, 2020 and December 31, 2019. Total compensation expense related to stock options granted under the 2014 Plan was approximately $8,000 and $6,000 for the three months ended December 31, 2020 and December 31, 2019, respectively. The Company did not award restricted shares during the three months ended December 31, 2020. The compensation expense related to restricted stock awards was approximately $44,000 during the three months ended December 31, 2020. During the three months ended December 31, 2019 a total of restricted shares were awarded. During the three months ended December 31, 2019 1,610 shares were forfeited. T he compensation expense related to restricted stock awards was approximately $ during the three months ended December 31, 2019 . Stock-based compensation expense for the cost of the awards granted is based on the grant-date fair value. For stock option awards, the fair value is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Accordingly, while management believes that the Black-Scholes option-pricing model provides a reasonable estimate of fair value, the model does not necessarily provide the best single measure of fair value for the Company’s employee stock options. Stock Options The following is a summary of stock option activity for the three months ended December 31, 2020: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding, beginning of year 25,830 $ 21.57 $ - Granted - $ - $ - Exercised - $ - $ - Forfeited/cancelled/expired - $ - $ - Outstanding, at December 31, 2020 25,830 $ 21.57 6.599 $ - Exercisable, at December 31, 2020 9,310 $ 22.09 8.113 $ - Nonvested, at December 31, 2020 16,520 $ 21.28 As of December 31, 2020, there was approximately $76,000 of total unrecognized compensation cost related to nonvested stock options under the 2014 Plan. The cost is expected to be recognized over a weighted average period of 3.00 years. Restricted Stock Awards The table below summarizes the activity for the Company’s restricted stock outstanding during the three months ended December 31, 2020: Shares Weighted Average Fair Value Outstanding, beginning of year 30,653 $ 21.98 Granted - $ - Vested (859 ) $ 21.01 Forfeited/cancelled/expired - $ - Outstanding, end of year 29,794 $ 22.00 As of December 31, 2020, there was approximately $318,000 of total unrecognized compensation cost related to nonvested shares of restricted stock granted under the 2014 Plan. The cost is expected to be recognized over a weighted average period of 3.38 years. |
Deposits
Deposits | 3 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Deposits | Note 14 – Deposits Deposits classified by type with percentages to total deposits at December 31, 2020 and September 30, 2020 consisted of the following: December 31, September 30, 2020 2020 (Dollars in thousands) Balances by types of deposit: Savings $ 46,531 5.17 % $ 45,072 5.06 % Money market accounts 303,796 33.73 277,711 31.17 Interest-bearing demand 303,535 33.71 303,682 34.09 Non-interest-bearing demand 49,264 5.47 50,422 5.66 703,126 78.08 % 676,887 75.98 % Certificates of deposit 197,339 21.92 % 214,019 24.02 % Total Deposits $ 900,465 100.00 % $ 890,906 100.00 % The total amount of certificates of deposit of $250,000 and greater at December 31, 2020 and September 30, 2020 was $54.4 million and $48.4 million, respectively. We had totaling $6.1 million Interest expense on deposits consisted of the following: Three Months Ended December 31, 2020 2019 (In thousands) Savings accounts $ 18 $ 11 Money market accounts 791 1,098 Interest-bearing demand 547 1,181 Certificates of deposit 901 1,447 Total $ 2,257 $ 3,737 As of December 31, 2020, the scheduled maturities of certificates of deposits are as follows: Scheduled Maturities (In thousands) Period Ending December 31, 2021 $ 138,051 2022 25,402 2023 17,107 2024 9,551 2025 5,685 Thereafter 1,543 Total $ 197,339 As of December 31, 2020, the scheduled maturities of certificates of deposits in amounts greater than $100,000 are as follows: Scheduled Maturities (In thousands) Period Ending December 31, Three months or less $ 43,247 Over three through six months 44,048 Over six through twelve months 14,609 Over twelve months 31,261 Total $ 133,165 |
Leases
Leases | 3 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 15 – Leases The Company determines if an arrangement is a lease at inception. The Company adopted the guidance of ASC 842 Leases and recorded ROU assets and related lease liabilities of $3.3 million at October 1, 2019. Operating leases are included in operating lease ROU assets and operating lease liabilities on our consolidated statements of financial condition. ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As our leases do not provide an implicit rate, in order to determine the present value of future payments for office leases we used our incremental borrowing rate based on the FHLB liquidity and funding rates. Our lease terms may include options to extend when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. As of December 31, 2020, the Company leases one The components of lease expense were as follows: Three Months Ended December 31, 2020 2019 (In thousands) Operating lease cost $ 171 $ 175 Finance lease cost - - Short-term lease cost 22 25 Total $ 193 $ 200 Supplemental information at and for December 31, 2020 and the three months ended December 31, 2020 related to leases was as follows: December 31, 2020 (Dollars in thousands) Supplemental balance sheet information Operating lease right-of-use assets $ 2,479 Operating lease liabilities $ 2,512 Weighted average remaining lease term 5.24 years Weighted average discount rate 1.99 % Three Months Ended December 31, 2020 (In thousands) Supplemental cash flow information Operating cash flows from operating leases $ 172 ROU assets obtained in exchange for lease obligations $ 3,279 Maturities of lease liabilities were as follows: Operating Leases (In thousands) Period Ending September 30, Remainder of 2021 $ 426 2022 492 2023 474 2024 474 2025 477 Thereafter 269 Total lease payments $ 2,612 Less: imputed interest (100 ) Total $ 2,512 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Financial Statement Presentation | Basis of financial statement presentation. The unaudited condensed consolidated financial statements of the Company include the accounts of the Company and its subsidiaries . All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements present the Company’s financial condition at December 31, 2020 and September 30, 2020 and the results of operations for the three months ended December 31, 2020 and 2019, and cash flows for the three months ended December 31, 2020 and 2019. In management’s opinion, the unaudited condensed consolidated financial statements contain all adjustments, which include normal and recurring adjustments, necessary for a fair presentation of the financial position and results of operations as of the dates and for the interim periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and note disclosures included in the 2020 Annual Report filed with the Securities and Exchange Commission (“SEC”). The consolidated statements of operations for the three months ended December 31, 2020 and the consolidated statements of cash flows for the three months ended December 31, 2020 are not necessarily indicative of the results of operations or cash flows for the full year ending September 30, 2021 or any interim period. Subsequent events have been evaluated through the date of the issuance of the unaudited Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. |
Operating, Accounting and Reporting Considerations related to COVID-19 | Operating, Accounting and Reporting Considerations related to COVID-19 The COVID-19 pandemic has negatively impacted the global economy. In response to the crisis, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed by Congress and signed into law on March 27, 2020. The CARES Act provides an estimated $2.2 trillion to fight the COVID-19 pandemic and stimulate the economy by supporting individuals and businesses through loans, grants, tax changes, and other types of relief. Under Section 4013 of the CARES Act, and based upon regulatory guidance promulgated by federal banking regulators, qualifying short-term loan modifications resulting in payment deferrals that are attributable to the adverse impact of COVID-19, are not considered to be troubled debt restructurings (“TDRs”). • Accounting for Loan Modifications – The CARES A ct provides that a financial institution may elect to suspend (1) the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. The suspension is applicable for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. The suspension is not applicable to any adverse impact on the credit of a borrower that is not related to the COVID-19 pandemic. • Paycheck Protection Program – The CARES Act established the Paycheck Protection Program (“PPP”), an expansion of the Small Business Administration’s 7(a) loan program and the Economic Injury Disaster Loan Program (“EIDL”), administrated directly by the Small Business Administration (“SBA”). • Mortgage Forbearance – Under the CARES Act, through the earlier of December 31, 2020, mortgage customers experiencing financial hardship due to COVID-19 may request forbearance on a loan for up to 30 days, with up to two additional 30-day periods at the borrower’s request. Also in response to the COVID-19 pandemic, the Board of Governors of the Federal Reserve System (“FRB”), the Federal Deposit Insurance Corporation (“FDIC”), the National Credit Union Administration (“NCUA”), the Office of the Comptroller of the Currency (“OCC”), and the Consumer Financial Protection Bureau (“CFPB”), in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to: • Accounting for Loan Modifications – Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with the Financial Accounting Standards Board (“FASB”) staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who are current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payments. Loan modifications were made in accordance with Section 4013 of the CARES Act and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions working with customers affected by COVID-19 and therefore were not classified as TDRs. • Past Due Reporting – With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreements. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral. • Nonaccrual Status and Charge-offs – During short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual or as classified. |
Recent Accounting Pronouncements Yet to Be Adopted | Recent Accounting Pronouncements Yet to Be Adopted Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) . The guidance allows for companies to: (1) account for certain contract modifications as a continuation of the existing contract without additional analysis; (2) continue hedge accounting when certain critical terms of a hedging relationship change and assess effectiveness in ways that disregard certain potential sources of ineffectiveness; and (3) make a one-time sale and/or transfer of certain debt securities from held-to-maturity to available-for-sale or trading. This ASU is available for adoption effective immediately, or as of January 1, 2020 or any date thereafter for the Company, and applies prospectively to contract modifications and hedging relationships. The one-time election to sell and/or transfer debt securities classified as held-to-maturity may be made at any time after March 12, 2020. The Company anticipates adopting this ASU and will continue to analyze the provisions of the ASU in connection with ongoing procedures to monitor the work of the Alternative Rates Committee of the FRB and Federal Reserve Bank of New York in identifying an alternative U.S. dollar reference interest rate. It is too early to predict a new rate index replacement, but we anticipate that it will be the Secured Overnight Financing Rate (“SOFR”). The adoption of this new requirement is not expected to have a material impact on the consolidated earnings, financial position or cash flows of the Company. Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740). This ASU identifies, evaluates, and improves areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The ASU is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The adoption of this new requirement is not expected to have a material impact on the consolidated earnings, financial position or cash flows of the Company. Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied currently will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, this ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. In April 2019, the FASB issued ASU 2019-04, Codification Improvements , which provides guidance on accounting for credit losses on accrued interest receivable balances and guidance on including recoveries when estimating the allowance. In May 2019, the FASB issued ASU 2019-05, Targeted Transition Relief, which allows entities with an option to elect fair value for certain instruments upon adoption of Topic 326. This ASU will be effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted . The Bank has a software system in place to assist with the calculation of Current Expected Credit Losses (“CECL”). In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) making this ASU effective for interim and annual periods beginning after December 15, 2022. As such , the Company would be required to implement the ASU on October 1, 2023. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which provides guidance on stakeholders’ specific issues about certain aspects of the amendments in ASU 2016-13. The Company formed a cross functional implementation team to review the requirements of ASU 2016-13 and contracted with a third-party provider to assist in the development and implementation of the revised credit loss methodology. The impact on the consolidated earnings, financial position and cash flows of the Company upon adoption of this ASU are currently unknown. |
Non-Interest Income (Tables)
Non-Interest Income (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Noninterest Income [Abstract] | |
Schedule of Company's Non-Interest Income | The Company has included the following table regarding the Company’s non-interest income for the periods presented: Three Months Ended December 31, 2020 2019 (In thousands) Rental income $ 54 $ 54 Net gains on sale and call of investments 355 - Net gains on sale of loans 404 3 Earnings on bank-owned life insurance 164 127 Non-interest income within the scope of other GAAP topics $ 977 $ 184 ATM fees $ 3 $ 2 Credit card fee income 5 6 DDA fee income 22 30 DDA service fees 24 19 Debit card fees 64 66 Other loan fee income 72 77 Other fee income 55 57 Other non-interest income 2 2 Non-interest income from contracts with customers $ 247 $ 259 Total Non-interest Income $ 1,224 $ 443 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of composition of weighted average shares (denominator) used in earnings per share computations | The following table sets forth the composition of the weighted average shares (denominator) used in the earnings per share computations: Three Months Ended December 31, 2020 2019 (In thousands, except share data) Net Income $ 2,273 $ 785 Weighted average shares outstanding 7,609,953 7,764,383 Average unearned ESOP shares (84,145 ) (98,541 ) Basic weighted average shares outstanding 7,525,808 7,665,842 Plus: effect of potential dilutive common stock equivalents - stock options 568 - Diluted weighted average common shares outstanding 7,526,376 7,665,842 Earnings per common share: Basic $ 0.30 $ 0.10 Diluted $ 0.30 $ 0.10 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Investment securities | The following tables present information related to the Company’s investment securities at December 31, 2020 and September 30, 2020: December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Investment Securities Available-for-Sale: U.S. government agencies $ 5,012 $ 8 $ - $ 5,020 State and municipal obligations 2,675 3 - 2,678 Single issuer trust preferred security 1,000 - (92 ) 908 Corporate debt securities 25,032 222 (156 ) 25,098 Mutual funds 1,520 - - 1,520 Total $ 35,239 $ 233 $ (248 ) $ 35,224 Investment Securities Held-to-Maturity: State and municipal obligations $ 1,785 $ 128 $ - $ 1,913 Corporate debt securities 3,469 233 - 3,702 Mortgage-backed securities: Collateralized mortgage obligations (“CMO”), fixed-rate 8,907 223 - 9,130 Total $ 14,161 $ 584 $ - $ 14,745 Total investment securities $ 49,400 $ 817 $ (248 ) $ 49,969 September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Investment Securities Available-for-Sale: U.S. government agencies $ 5,025 $ 15 $ - $ 5,040 State and municipal obligations 3,101 4 - 3,105 Single issuer trust preferred security 1,000 - (75 ) 925 Corporate debt securities 21,009 182 (243 ) 20,948 Mutual fund 1,523 - - 1,523 Total $ 31,658 $ 201 $ (318 ) $ 31,541 Investment Securities Held-to-Maturity: State and municipal obligations $ 1,794 $ 129 $ - $ 1,923 Corporate debt securities 3,498 260 - 3,758 Mortgage-backed securities: CMO, fixed-rate 9,678 249 - 9,927 Total $ 14,970 $ 638 $ - $ 15,608 Total investment securities $ 46,628 $ 839 $ (318 ) $ 47,149 |
Schedule of aggregate investments in an unrealized loss position | The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category, and the length of time individual securities have been in a continuous unrealized loss position at December 31, 2020 and September 30, 2020 : December 31, 2020 Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Investment Securities Available for Sale: Single issuer trust preferred security $ - $ - $ 908 $ (92 ) $ 908 $ (92 ) Corporate debt securities 2,495 (5 ) 3,349 (151 ) 5,844 (156 ) Total investment securities $ 2,495 $ (5 ) $ 4,257 $ (243 ) $ 6,752 $ (248 ) September 30, 2020 Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Investment Securities Available for Sale: Single issuer trust preferred security $ - $ - $ 925 $ (75 ) $ 925 $ (75 ) Corporate debt securities 4,426 (74 ) 3,330 (169 ) 7,756 (243 ) Total investment securities $ 4,426 $ (74 ) $ 4,255 $ (244 ) $ 8,681 $ (318 ) |
Schedule of amortized cost and fair value of debt securities by contractual maturity | The following table presents information for investment securities at December 31, 2020, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. December 31, 2020 Amortized Cost Fair Value (In thousands) Available-for-Sale: Over 1 year through five years $ 6,675 $ 6,528 After 5 years through ten years 22,052 22,178 Over 10 years 6,512 6,518 Total $ 35,239 $ 35,224 Held-to-Maturity: Over 1 year through five years $ 4,581 $ 4,892 After 5 years through ten years 1,098 1,161 Mortgage-backed securities: CMO, fixed-rate 8,482 8,692 Total $ 14,161 $ 14,745 Total investment securities $ 49,400 $ 49,969 |
Loans Receivable and Related _2
Loans Receivable and Related Allowance for Loan Losses (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of loans receivable | Loans receivable in the Company’s portfolio consisted of the following at the dates indicated below: December 31, 2020 September 30, 2020 (In thousands) Residential mortgage $ 232,481 $ 242,090 Construction and Development: Residential and commercial 73,000 65,703 Land 3,648 3,110 Total Construction and Development 76,648 68,813 Commercial: Commercial real estate 478,808 495,398 Farmland 7,378 7,517 Multi-family 67,457 67,767 Commercial and industrial 101,852 116,584 Other 10,010 10,142 Total Commercial 665,505 697,408 Consumer: Home equity lines of credit 16,389 17,128 Second mortgages 9,097 10,711 Other 2,388 2,851 Total Consumer 27,874 30,690 Total loans 1,002,508 1,039,001 Deferred loan fees and costs, net 873 326 Allowance for loan losses (13,035 ) (12,433 ) Total loans receivable, net $ 990,346 $ 1,026,894 |
Schedule of allowance for loan losses | The following tables summarize the primary classes of the allowance for loan losses (“ALLL”), segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment, as of December 31, 2020 and September 30, 2020. Activity in the ALLL is presented for the three months ended December 31, 2020 and 2019 and the fiscal year ended September 30, 2020: Construction and Development Commercial Consumer Residential Mortgage Residential and Commercial Land Commercial Real Estate Farmland Multi- Family Commercial and Industrial Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total Allowance for loan losses: (In thousands) Three Months Ended December 31, 2020 Beginning balance $ 1,667 $ 465 $ 23 $ 8,682 $ 47 $ 511 $ 578 $ 51 $ 130 $ 196 $ 29 $ 54 $ 12,433 Charge-offs - - - - - - - - - - (1 ) - (1 ) Recoveries 1 - - 1 - - 1 - - 50 - - 53 Provisions (65 ) 43 1 (710 ) 305 (3 ) 21 (1 ) (5 ) (67 ) (3 ) 1,034 550 Ending balance $ 1,603 $ 508 $ 24 $ 7,973 $ 352 $ 508 $ 600 $ 50 $ 125 $ 179 $ 25 $ 1,088 $ 13,035 Ending balance: individually evaluated for impairment $ - $ - $ - $ 209 $ 317 $ - $ - $ - $ - $ 78 $ - $ - $ 604 Ending balance: collectively evaluated for impairment $ 1,603 $ 508 $ 24 $ 7,764 $ 35 $ 508 $ 600 $ 50 $ 125 $ 101 $ 25 $ 1,088 $ 12,431 Loans receivable: Ending balance $ 232,481 $ 73,000 $ 3,648 $ 478,808 $ 7,378 $ 67,457 $ 101,852 $ 10,010 $ 16,389 $ 9,097 $ 2,388 $ 1,002,508 Ending balance: individually evaluated for impairment $ 3,721 $ - $ - $ 25,547 $ 2,287 $ - $ 549 $ - $ 73 $ 365 $ - $ 32,542 Ending balance: collectively evaluated for impairment $ 228,760 $ 73,000 $ 3,648 $ 453,261 $ 5,091 $ 67,457 $ 101,303 $ 10,010 $ 16,316 $ 8,732 $ 2,388 $ 969,966 Construction and Development Commercial Consumer Residential Mortgage Residential and Commercial Land Commercial Real Estate Farmland Multi- Family Commercial and Industrial Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total Allowance for loan losses: (In thousands) Three Months Ended December, 2019 Beginning balance $ 1,364 $ 523 $ 20 $ 5,903 $ 49 $ 369 $ 615 $ 21 $ 122 $ 267 $ 23 $ 819 $ 10,095 Charge-offs - - - (2,288 ) - - - - - (2 ) - - (2,290 ) Recoveries - - - 1 - - - - - 6 - - 7 Provisions (82 ) 62 (2 ) 2,578 (11 ) (173 ) (151 ) 12 (21 ) (36 ) - (26 ) 2,150 Ending balance $ 1,282 $ 585 $ 18 $ 6,194 $ 38 $ 196 $ 464 $ 33 $ 101 $ 235 $ 23 $ 793 $ 9,962 Ending balance: individually evaluated for impairment $ - $ - $ - $ 112 $ - $ - $ - $ - $ - $ 98 $ - $ - $ 210 Ending balance: collectively evaluated for impairment $ 1,282 $ 585 $ 18 $ 6,082 $ 38 $ 196 $ 464 $ 33 $ 101 $ 137 $ 23 $ 793 $ 9,752 Loans receivable: Ending balance $ 234,738 $ 49,095 $ 3,625 $ 521,495 $ 7,563 $ 43,473 $ 99,494 $ 8,569 $ 18,372 $ 13,179 $ 2,160 $ 1,001,763 Ending balance: individually evaluated for impairment $ 3,527 $ - $ - $ 7,649 $ - $ - $ - $ - $ 29 $ 902 $ - $ 12,107 Ending balance: collectively evaluated for impairment $ 231,211 $ 49,095 $ 3,625 $ 513,846 $ 7,563 $ 43,473 $ 99,494 $ 8,569 $ 18,343 $ 12,277 $ 2,160 $ 989,656 Construction and Development Commercial Consumer Residential Mortgage Residential and Commercial Land Commercial Real Estate Farmland Multi- Family Commercial and Industrial Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total Allowance for loan losses: (In thousands) Year Ended September 30, 2020 Beginning balance $ 1,364 $ 523 $ 20 $ 5,903 $ 49 $ 369 $ 615 $ 21 $ 122 $ 267 $ 23 $ 819 $ 10,095 Charge-offs - - - (8,330 ) - - - - (62 ) (3 ) (1 ) - (8,396 ) Recoveries 25 - - 6 - - 2 - 1 88 2 - 124 Provisions 278 (58 ) 3 11,103 (2 ) 142 (39 ) 30 69 (156 ) 5 (765 ) 10,610 Ending balance $ 1,667 $ 465 $ 23 $ 8,682 $ 47 $ 511 $ 578 $ 51 $ 130 $ 196 $ 29 $ 54 $ 12,433 Ending balance: individually evaluated for impairment $ - $ - $ - $ 227 $ - $ - $ - $ - $ - $ 81 $ - $ - $ 308 Ending balance: collectively evaluated for impairment $ 1,667 $ 465 $ 23 $ 8,455 $ 47 $ 511 $ 578 $ 51 $ 130 $ 115 $ 29 $ 54 $ 12,125 Loans receivable: Ending balance $ 242,090 $ 65,703 $ 3,110 $ 495,398 $ 7,517 $ 67,767 $ 116,584 $ 10,142 $ 17,128 $ 10,711 $ 2,851 $ 1,039,001 Ending balance: individually evaluated for impairment $ 3,388 $ - $ - $ 25,926 $ - $ - $ - $ - $ 26 $ 882 $ - $ 30,222 Ending balance: collectively evaluated for impairment $ 238,702 $ 65,703 $ 3,110 $ 469,472 $ 7,517 $ 67,767 $ 116,584 $ 10,142 $ 17,102 $ 9,829 $ 2,851 $ 1,008,779 |
Schedule of impaired loans | The increase in impaired loans with no specific allowance is primarily due to one commercial farmland loan of approximately $2.3 million. table presents impaired loans in the portfolio by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary, as of December 31, 2020 and September 30, 2020: Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans Recorded Investment Related Allowance Recorded Investment Recorded Investment Unpaid Principal Balance (In thousands) December 31, 2020 Residential mortgage $ - $ - $ 3,721 $ 3,721 $ 3,979 Commercial: Commercial real estate 363 209 25,184 25,547 30,519 Farmland 2,287 317 - 2,287 2,287 Commercial and industrial - - 549 549 549 Consumer: Home equity lines of credit - - 73 73 77 Second mortgages 99 78 266 365 415 Total impaired loans $ 2,749 $ 604 $ 29,793 $ 32,542 $ 37,826 September 30, 2020 Residential mortgage $ - $ - $ 3,388 $ 3,388 $ 3,598 Commercial: Commercial real estate 676 227 25,250 25,926 36,945 Consumer: Home equity lines of credit - - 26 26 30 Second mortgages 101 81 781 882 949 Total impaired loans $ 777 $ 308 $ 29,445 $ 30,222 $ 41,522 |
Schedule of average recorded investment in impaired loans and related interest income recognized | The following table presents the average recorded investment in impaired loans in portfolio and related interest income recognized for the three months ended December 31, 2020 and 2019: Three Months Ended December 31, 2020 Average Impaired Loans Interest Income Recognized on Impaired Loans (In thousands) Residential mortgage $ 3,483 $ 15 Commercial: Commercial real estate 25,727 105 Farmland 771 - Commercial and industrial 185 2 Consumer: Home equity lines of credit 74 - Second mortgages 700 1 Total $ 30,940 $ 123 Three Months Ended December 31, 2019 Average Impaired Loans Interest Income Recognized on Impaired Loans (In thousands) Residential mortgage $ 3,532 $ 22 Commercial: Commercial real estate 9,096 15 Consumer: Home equity lines of credit 29 - Second mortgages 845 9 Total $ 13,502 $ 46 |
Schedule of classes of loan portfolio | The following table presents the classes of the loan portfolio categorized as pass, special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2020 and September 30, 2020: Pass Special Mention Substandard Doubtful Total (In thousands) December 31, 2020: Residential mortgage $ 228,646 $ - $ 3,835 $ - $ 232,481 Construction and Development: Residential and commercial 73,000 - - - 73,000 Land 3,648 - - - 3,648 Commercial: Commercial real estate 392,611 46,790 39,407 - 478,808 Farmland 5,091 - 2,287 - 7,378 Multi-family 58,025 9,432 - - 67,457 Commercial and industrial 94,914 6,277 661 - 101,852 Other 10,010 - - - 10,010 Consumer: Home equity lines of credit 16,232 - 157 - 16,389 Second mortgages 7,966 75 1,056 - 9,097 Other 2,388 - - - 2,388 Total $ 892,531 $ 62,574 $ 47,403 $ - $ 1,002,508 Pass Special Mention Substandard Doubtful Total (In thousands) September 30, 2020: Residential mortgage $ 238,610 $ - $ 3,480 $ - $ 242,090 Construction and Development: Residential and commercial 65,703 - - - 65,703 Land 3,110 - - - 3,110 Commercial: Commercial real estate 422,143 46,892 26,363 - 495,398 Farmland 7,517 - - - 7,517 Multi-family 58,285 9,482 - - 67,767 Commercial and industrial 110,099 6,368 117 - 116,584 Other 10,142 - - - 10,142 Consumer: Home equity lines of credit 16,969 - 159 - 17,128 Second mortgages 9,573 76 1,062 - 10,711 Other 2,851 - - - 2,851 Total $ 945,002 $ 62,818 $ 31,181 $ - $ 1,039,001 |
Schedule of loans that are no longer accruing interest by portfolio class | The following table presents loans that are no longer accruing interest as of December 31, 2020 and September 30, 2020, by portfolio class: December 31, 2020 September 30, 2020 (In thousands) Non-accrual loans: Residential mortgage $ 1,916 $ 2,036 Commercial: Commercial real estate 14,042 14,414 Consumer: Home equity lines of credit 73 26 Second mortgages 209 254 Total non-accrual loans $ 16,240 $ 16,730 |
Schedule of classes of loan portfolio summarized by aging categories | The following table presents the classes of the loan portfolio categorized by the aging categories described above as of December 31, 2020 and September 30, 2020: Current 30-59 Days Past Due 60-89 Days Past Due 90 Days and More Past Due Total Past Due Total Loans Receivable Loans Receivable > 90 Days and Accruing (In thousands) December 31, 2020: Residential mortgage $ 228,711 $ 1,678 $ 520 $ 1,572 $ 3,770 $ 232,481 $ 710 Construction and Development: Residential and commercial 73,000 - - - - 73,000 - Land 3,648 - - - - 3,648 - Commercial: Commercial real estate 464,949 13,859 - - 13,859 478,808 - Farmland 5,091 2,287 - - 2,287 7,378 - Multi-family 67,457 - - - - 67,457 - Commercial and industrial 98,898 2,954 - - 2,954 101,852 - Other 10,010 - - - - 10,010 - Consumer: Home equity lines of credit 16,230 86 - 73 159 16,389 - Second mortgages 8,669 197 54 177 428 9,097 65 Other 2,387 1 - - 1 2,388 - Total $ 979,050 $ 21,062 $ 574 $ 1,822 $ 23,458 $ 1,002,508 $ 775 Current 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Total Loans Receivable Loans Receivable > 90 Days and Accruing (In thousands) September 30, 2020: Residential mortgage $ 239,623 $ 68 $ 694 $ 1,705 $ 2,467 $ 242,090 $ - Construction and Development: Residential and commercial 65,703 - - - - 65,703 - Land 3,110 - - - - 3,110 - Commercial: Commercial real estate 495,087 - - 311 311 495,398 - Farmland 7,517 - - - - 7,517 - Multi-family 67,767 - - - - 67,767 - Commercial and industrial 116,584 - - - - 116,584 - Other 10,142 - - - - 10,142 - Consumer: Home equity lines of credit 17,080 - - 48 48 17,128 48 Second mortgages 10,325 157 33 196 386 10,711 10 Other 2,850 - 1 - 1 2,851 - Total $ 1,035,788 $ 225 $ 728 $ 2,260 $ 3,213 $ 1,039,001 $ 58 |
Schedule of TDR loans | For any residential real estate property collateralizing a consumer mortgage loan, the Company is considered to possess the related collateral only if legal title is obtained upon completion of foreclosure, or the borrower conveys all interest in the residential real estate property to the Company through completion of a deed in lieu of foreclosure or similar legal agreement. Excluding OREO, the Company had $624,000 and $175,000 Total Troubled Debt Restructurings Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months Number of Loans Recorded Investment Number of Loans Recorded Investment (Dollars in thousands) December 31, 2020: Residential mortgage 17 $ 3,359 7 $ 1,553 Commercial: Commercial real estate 5 18,021 1 6,591 Farmland 1 2,287 - - Commercial and industrial 1 549 - - Consumer: Second mortgages 4 156 - - Total 28 $ 24,372 8 $ 8,144 September 30, 2020: Residential mortgage 17 $ 3,435 7 $ 1,617 Commercial: Commercial real estate 5 18,091 1 6,652 Consumer: Second mortgages 4 161 - - Total 26 $ 21,687 8 $ 8,269 |
Schedule of performing status of TDR loans | The following table reports the performing status of all TDR loans. The performing status is determined by a loan’s compliance with the modified terms: December 31, 2020 September 30, 2020 Performing Non-Performing Performing Non-Performing (In thousands) Residential mortgage $ 1,806 $ 1,553 $ 1,818 $ 1,617 Commercial: Commercial real estate 11,431 6,591 11,439 6,652 Farmland 2,287 - - - Commercial and industrial 549 - - - Consumer: Second mortgages 156 - 161 - Total $ 16,229 $ 8,144 $ 13,418 $ 8,269 |
Schedule of new TDR's | The following table shows the new TDRs for the three months ended December 31, 2020 and 2019: For the Three Months Ended December 31, 2020 2019 Number of Contracts Pre- Modifications Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Contracts Pre- Modifications Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment (In thousands) Troubled Debt Restructurings: Residential mortgage - $ - $ - 1 $ 207 $ 207 Commercial: Commercial real estate - $ - $ - 1 $ 295 $ 295 Farmland 1 $ 2,287 $ 2,287 - $ - $ - Commercial and industrial 1 $ 549 $ 549 - $ - $ - Total troubled debt restructurings 2 $ 2,836 $ 2,836 2 $ 502 $ 502 |
Schedule of composition of loans by loan segment | The following tables set forth the composition of these loans by loan segments as of December 31, 2020 and September 30, 2020: December 31, 2020 Number of Loans Loan Deferment Exposure Gross Loans December 31, 2020 Percentage of Gross Loans on Deferral (Dollars in thousands) Residential mortgage 5 $ 934 $ 232,481 0.09 % Construction and Development: Residential and commercial - - 73,000 0.00 % Land loans - - 3,648 0.00 % Total Construction and Development - - 76,648 0.00 % Commercial: Commercial real estate 7 67,082 478,808 6.69 % Farmland - - 7,378 0.00 % Multi-family 1 717 67,457 0.08 % Commercial and industrial 1 22 101,852 0.00 % Other - - 10,010 0.00 % Total Commercial 9 67,821 665,505 6.77 % Consumer: Home equity lines of credit 1 131 16,389 0.01 % Second mortgages 1 17 9,097 0.00 % Other - - 2,388 0.00 % Total Consumer 2 148 27,874 0.01 % Total loans 16 $ 68,903 $ 1,002,508 6.87 % September 30, 2020 Number of Loans Loan Deferment Exposure Gross Loans September 30, 2020 Percentage of Gross Loans on Deferral (Dollars in thousands) Residential mortgage 5 $ 1,288 $ 242,090 0.12 % Construction and Development: Residential and commercial - - 65,703 0.00 % Land loans - - 3,110 0.00 % Total Construction and Development - - 68,813 0.00 % Commercial: Commercial real estate 21 131,348 495,398 12.64 % Farmland 1 2,288 7,517 0.22 % Multi-family 2 3,718 67,767 0.36 % Commercial and industrial 10 5,547 116,584 0.53 % Other - - 10,142 0.00 % Total Commercial 34 142,901 697,408 13.75 % Consumer: Home equity lines of credit 3 579 17,128 0.06 % Second mortgages 1 17 10,711 0.00 % Other - - 2,851 0.00 % Total Consumer 4 596 30,690 0.06 % Total loans 43 $ 144,785 $ 1,039,001 13.94 % |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Regulatory Matters Disclosure [Abstract] | |
Schedule of actual capital amounts and ratios | The following table summarizes the Company’s compliance with applicable regulatory capital requirements as of December 31, 2020 and September 30, 2020: Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2020 Tier 1 Leverage (Core) Capital (to adjusted assets) $ 144,059 11.76 % $ 48,991 4.00 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 144,059 14.30 % 45,347 4.50 % N/A N/A Tier 1 Capital (to risk weighted assets) 144,059 14.30 % 60,462 6.00 % N/A N/A Total Risk Based Capital (to risk weighted assets) 151,478 18.01 % 80,616 8.00 % N/A N/A As of September 30, 2020 Tier 1 Leverage (Core) Capital (to adjusted assets) $ 141,681 11.63 % $ 48,473 4.00 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 141,681 14.00 % 45,528 4.50 % N/A N/A Tier 1 Capital (to risk weighted assets) 141,681 14.00 % 60,704 6.00 % N/A N/A Total Risk Based Capital (to risk weighted assets) 178,972 17.69 % 80,939 8.00 % N/A N/A The following table summarizes the Bank’s compliance with applicable regulatory capital requirements as of December 31, 2020 and September 30, 2020 : Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2020 Tier 1 Leverage (Core) Capital (to adjusted assets) $ 158,399 12.95 % $ 48,929 4.00 % $ 61,162 5.00 % Common Equity Tier 1 Capital (to risk weighted assets) 158,399 15.74 % 45,272 4.50 % 65,393 6.50 % Tier 1 Capital (to risk weighted assets) 158,399 15.74 % 60,363 6.00 % 80,484 8.00 % Total Risk Based Capital (to risk weighted assets) 170,982 17.00 % 80,484 8.00 % 100,605 10.00 % As of September 30, 2020 Tier 1 Leverage (Core) Capital (to adjusted assets) $ 155,575 12.78 % $ 48,685 4.00 % $ 60,856 5.00 % Common Equity Tier 1 Capital (to risk weighted assets) 155,575 15.40 % 45,459 4.50 % 65,663 6.50 % Tier 1 Capital (to risk weighted assets) 155,575 15.40 % 60,612 6.00 % 80,816 8.00 % Total Risk Based Capital (to risk weighted assets) 168,090 16.64 % 80,816 8.00 % 101,020 10.00 % |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of effects of derivative instruments on the Consolidated Financial Statements | The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition as of December 31, 2020 and September 30, 2020: ` December 31, 2020 Asset derivatives Liability derivatives Notional Amount Fair Value Statement of Financial Condition Location Notional Amount Fair Value Statement of Financial Condition Location (In thousands) Derivatives designated as a hedging instrument: Interest rate swap agreement $ - $ - Other assets $ 90,000 $ 1,017 Other liabilities Derivatives not designated as a hedging instrument: Interest rate swap agreement $ 45,060 $ 7,488 Other assets $ 45,060 $ 7,492 Other liabilities September 30, 2020 Asset derivatives Liability derivatives Notional Amount Fair Value Statement of Financial Condition Location Notional Amount Fair Value Statement of Financial Condition Location (In thousands) Derivatives designated as a hedging instrument: Interest rate swap agreement $ - $ - Other assets $ 90,000 $ 1,291 Other liabilities Derivatives not designated as a hedging instrument: Interest rate swap agreement $ 45,162 $ 8,752 Other assets $ 45,162 $ 8,756 Other liabilities |
Schedule of offsetting of derivative assets and liabilities | The tables below present the d erivative assets and liabilities offsetting as of December 31, 2020 and September 30, 2020 : Offsetting of Derivative Assets (In thousands) as of December 31, 2020 Gross Amounts Not Offset in the Statements of Financial Condition Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets presented in the Statement of Financial Condition Financial Instruments Cash Collateral Received Net Amount Derivatives $ 7,488 $ - $ 7,488 $ - $ - $ 7,488 Offsetting of Derivative Liabilities (In thousands) as of December 31, 2020 Gross Amounts Not Offset in the Statements of Financial Condition Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Liabilities presented in the Statement of Financial Condition Financial Instruments Cash Collateral Posted Net Amount Derivatives $ 8,509 $ - $ 8,509 $ 1,230 $ 12,857 $ (5,578 ) Offsetting of Derivative Assets (In thousands) as of September 30, 2020 Gross Amounts Not Offset in the Statements of Financial Condition Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets presented in the Statement of Financial Condition Financial Instruments Cash Collateral Received Net Amount Derivatives $ 8,752 $ - $ 8,752 $ - $ - $ 8,752 Offsetting of Derivative Liabilities (In thousands) as of September 30, 2020 Gross Amounts Not Offset in the Statements of Financial Condition Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Liabilities presented in the Statement of Financial Condition Financial Instruments Cash Collateral Posted Net Amount Derivatives $ 10,047 $ - $ 10,047 $ 1,498 $ 12,857 $ (4,308 ) |
Schedule of net gains (losses) recorded in accumulated other comprehensive income and the Consolidate Statements of Operations | The tables below present the net gains (losses) recorded in accumulated other comprehensive loss and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the three months ended December 31, 2020 and 2019: Three Months Ended December 31, 2020 Amount of Loss Recognized in OCI on Derivative Amount of Loss Reclassified from OCI to Interest Expense (In thousands) Interest rate swap agreements $ (8 ) $ (280 ) Total derivatives (8 ) (280 ) Three Months Ended December 31, 2019 Amount of Gain Recognized in OCI on Derivative Amount of Loss Reclassified from OCI to Interest Expense (In thousands) Interest rate swap agreements $ 77 $ (14 ) Total derivatives 77 (14 ) |
Schedule of effects of derivative instruments on Consolidated Statements of Operations | The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the three months ended December 31, 2020 and 2019: Three Months Ended December 31, 2020 Consolidated Statements of Operations Amount of Gain (Loss) Recognized in Income on derivatives (In thousands) Derivatives not designated as a hedging instrument: Interest rate swap agreement Other income $ 1 Total $ 1 Three Months Ended December 31, 2019 Consolidated Statements of Operations Amount of Loss Recognized in Income on derivatives (In thousands) Derivatives not designated as a hedging instrument: Interest rate swap agreement Other income $ (3 ) Total $ (3 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of balances of assets measured at fair value on a recurring basis | The tables below present the balances of assets measured at fair value on a recurring basis as of December 31, 2020 and September 30, 2020: December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investment securities available for sale: Debt securities: U.S. government agencies $ 5,020 $ - $ 5,020 $ - State and municipal obligations 2,678 - 2,678 - Single issuer trust preferred security 908 - 908 - Corporate debt securities 25,098 - 25,098 - Mutual funds 1,520 1,020 - 500 Total investment securities available for sale $ 35,224 $ 1,020 $ 33,704 $ 500 Derivative instruments $ 7,488 $ - $ 7,488 $ - Liabilities: Derivative instruments $ 8,509 $ - $ 8,509 $ - September 30, 2020 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investment securities available for sale: Debt securities: U.S. government agencies $ 5,040 $ - $ 5,040 $ - State and municipal obligations 3,105 - 3,105 - Single issuer trust preferred security 925 - 925 - Corporate debt securities 20,948 - 20,948 - Mutual fund 1,523 1,023 - 500 Total investment securities available for sale $ 31,541 $ 1,023 $ 30,018 $ 500 Derivative instruments $ 8,752 $ - $ 8,752 $ - Liabilities: Derivative instruments $ 10,047 $ - $ 10,047 $ - |
Schedule of securities available-for-sale measured at fair value on a recurring basis using significant unobservable inputs | The following tables present additional information about the securities available-for-sale measured at fair value on a recurring basis and for which the Company utilized significant unobservable inputs (Level 3 inputs) to determine fair value for the three months ended December 31, 2020 and December 31, 2019. Fair value measurements using significant unobservable inputs (Level 3) (In thousands) Balance, October 1, 2020 $ 500 Payments received - Total gains or losses (realized/unrealized) Included in earnings - Included in other comprehensive income - Purchases - Transfers in and/or out of Level 3 - Balance, December 31, 2020 $ 500 Fair value measurements using significant unobservable inputs (Level 3) (In thousands) Balance, October 1, 2019 $ 250 Payments received - Total gains or losses (realized/unrealized) Included in earnings - Included in other comprehensive income - Purchases 250 Transfers in and/or out of Level 3 - Balance, December 31, 2019 $ 500 |
Schedule of assets measured at fair value on a non recurring basis | For assets measured at fair value on a nonrecurring basis that were still held at the end of the period, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of the related individual assets or portfolios at December 31, 2020 and September 30, 2020: December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Other real estate owned $ 5,796 $ - $ - $ 5,796 Impaired loans (1) 9,597 - - 9,597 Total $ 15,393 $ - $ - $ 15,393 December 31, 2020 Fair Value at December 31, 2020 Valuation Technique Unobservable Input Range/(Weighted Average) (Dollars in thousands) Other real estate owned $ 5,796 Appraisal of Collateral(2) Collateral discount(3) 0%/(0%) Impaired loans (1) 9,597 Appraisal of Collateral(2) Collateral discount(3) (2.0%)-20.0%/(1.4%) Total $ 15,393 (1) Consisted of seven loans with an aggregate balance of $10.2 million and with $604,000 in specific loan loss allowance. (2) Fair value is generally determined through independent appraisals of the underlying collateral primarily using comparable sales. (3) Appraisals may be adjusted by management for qualitative factors such as time, changes in economic conditions and estimated liquidation expense. September 30, 2020 Total Level 1 Level 2 Level 3 (In thousands) Other real estate owned $ 5,796 $ - $ - $ 5,796 Impaired loans (1) 7,920 - - 7,920 Total $ 13,716 $ - $ - $ 13,716 September 30, 2020 Fair Value at September 30, 2020 Valuation Technique Unobservable Input Range/(Weighted Average) (Dollars in thousands) Other real estate owned $ 5,796 Appraisal of Collateral(2) Collateral discount(3) 0%/(0%) Impaired loans (1) 7,920 Appraisal of Collateral(2) Collateral discount(3) (2.0%) - 20.0%/(1.4%) Total $ 13,716 (1) Consisted of seven loans with an aggregate balance of $8.2 million and with $308,000 in specific loan loss allowance. (2) Fair value is generally determined through independent appraisals of the underlying collateral primarily using comparable sales. ( 3 ) Appraisals may be adjusted by management for qualitative factors such as time, changes in economic conditions and estimated liquidation expense. |
Schedule of carrying amount and estimated fair value of the Company's financial instruments | The carrying amount and estimated fair value of the Company’s financial instruments as of December 31, 2020 and September 30, 2020 are presented below: December 31, 2020 Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Cash and cash equivalents $ 109,222 $ 109,222 $ 109,222 $ - $ - Investment securities available-for-sale 35,224 35,224 1,020 33,704 500 Investment securities held-to-maturity 14,161 14,745 - 14,745 - Loans receivable, net (including impaired loans) 990,346 998,545 - - 998,545 Accrued interest receivable 4,051 4,051 - 4,051 - Restricted stock 9,327 9,327 - 9,327 - Mortgage servicing rights (included in Other Assets) 87 87 - 87 - Derivatives (included in Other Assets) 7,488 7,488 - 7,488 - Financial liabilities: Savings accounts 46,531 46,531 - 46,531 - Checking and NOW accounts 352,799 352,799 - 352,799 - Money market accounts 303,796 303,796 - 303,796 - Certificates of deposit 197,339 199,959 - 199,959 - Borrowings (excluding sub debt) 135,000 135,706 - 135,706 - Subordinated debt 24,816 24,845 - 24,845 - Derivatives (included in Other Liabilities) 8,509 8,509 - 8,509 - Accrued interest payable 1,078 1,078 - 1,078 - September 30, 2020 Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Cash and cash equivalents $ 61,439 $ 61,439 $ 61,439 $ - $ - Investment securities available-for-sale 31,541 31,541 1,023 30,018 500 Investment securities held-to-maturity 14,970 15,608 - 15,608 - Loans receivable, net (including impaired loans) 1,031,392 1,039,981 - - 1,039,981 Accrued interest receivable 3,677 3,677 - 3,677 - Restricted stock 9,622 9,622 - 9,622 - Mortgage servicing rights (included in Other Assets) 111 111 - 111 - Derivatives (included in Other Assets) 8,752 8,752 - 8,752 - Financial liabilities: Savings accounts 45,072 45,072 - 45,072 - Checking and NOW accounts 354,104 354,104 - 354,104 - Money market accounts 277,711 277,711 - 277,711 - Certificates of deposit 214,019 217,212 - 217,212 - Borrowings (excluding sub debt) 134,225 135,101 - 135,101 - Subordinated debt 24,776 25,030 - 25,030 - Derivatives (included in Other Liabilities) 10,047 10,047 - 10,047 - Accrued interest payable 728 728 - 728 - |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive loss | The components of accumulated other comprehensive loss included in shareholders’ equity are as follows: December 31, 2020 September 30, 2020 (In thousands) Net unrealized holding losses on available-for-sale securities $ (15 ) $ (118 ) Tax effect 3 25 Net of tax amount (12 ) (93 ) Fair value adjustments on derivatives (989 ) (1,260 ) Tax effect 208 265 Net of tax amount (781 ) (995 ) Total accumulated other comprehensive loss $ (793 ) $ (1,088 ) |
Schedule of other comprehensive loss and related tax effects | Other comprehensive income and related tax effects are presented in the following table: Three Months Ended December 31, 2020 2019 (In thousands) Net unrealized holding (losses) gains on available-for-sale securities $ 457 $ 71 Net realized gain on securities available-for-sale (355 ) - Amortization of unrealized holding losses on securities transferred from available-for-sale to held-to-maturity 1 1 Adjustment for loss recorded on replacement of derivative (2 ) - Fair value adjustments on derivatives 273 91 Other comprehensive income before taxes 374 163 Tax effect (79 ) (34 ) Total other comprehensive income $ 295 $ 129 |
Equity Based Incentive Compen_2
Equity Based Incentive Compensation Plan (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of stock option activity | The following is a summary of stock option activity for the three months ended December 31, 2020: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding, beginning of year 25,830 $ 21.57 $ - Granted - $ - $ - Exercised - $ - $ - Forfeited/cancelled/expired - $ - $ - Outstanding, at December 31, 2020 25,830 $ 21.57 6.599 $ - Exercisable, at December 31, 2020 9,310 $ 22.09 8.113 $ - Nonvested, at December 31, 2020 16,520 $ 21.28 |
Schedule of restricted stock outstanding | The table below summarizes the activity for the Company’s restricted stock outstanding during the three months ended December 31, 2020: Shares Weighted Average Fair Value Outstanding, beginning of year 30,653 $ 21.98 Granted - $ - Vested (859 ) $ 21.01 Forfeited/cancelled/expired - $ - Outstanding, end of year 29,794 $ 22.00 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Schedule of deposits classified by type with percentages to total deposits | Deposits classified by type with percentages to total deposits at December 31, 2020 and September 30, 2020 consisted of the following: December 31, September 30, 2020 2020 (Dollars in thousands) Balances by types of deposit: Savings $ 46,531 5.17 % $ 45,072 5.06 % Money market accounts 303,796 33.73 277,711 31.17 Interest-bearing demand 303,535 33.71 303,682 34.09 Non-interest-bearing demand 49,264 5.47 50,422 5.66 703,126 78.08 % 676,887 75.98 % Certificates of deposit 197,339 21.92 % 214,019 24.02 % Total Deposits $ 900,465 100.00 % $ 890,906 100.00 % |
Schedule of interest expense on deposits | Interest expense on deposits consisted of the following: Three Months Ended December 31, 2020 2019 (In thousands) Savings accounts $ 18 $ 11 Money market accounts 791 1,098 Interest-bearing demand 547 1,181 Certificates of deposit 901 1,447 Total $ 2,257 $ 3,737 |
Schedule of certificates of deposit maturities | As of December 31, 2020, the scheduled maturities of certificates of deposits are as follows: Scheduled Maturities (In thousands) Period Ending December 31, 2021 $ 138,051 2022 25,402 2023 17,107 2024 9,551 2025 5,685 Thereafter 1,543 Total $ 197,339 As of December 31, 2020, the scheduled maturities of certificates of deposits in amounts greater than $100,000 are as follows: Scheduled Maturities (In thousands) Period Ending December 31, Three months or less $ 43,247 Over three through six months 44,048 Over six through twelve months 14,609 Over twelve months 31,261 Total $ 133,165 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended December 31, 2020 2019 (In thousands) Operating lease cost $ 171 $ 175 Finance lease cost - - Short-term lease cost 22 25 Total $ 193 $ 200 |
Schedule of Supplemental Information of Leases | Supplemental information at and for December 31, 2020 and the three months ended December 31, 2020 related to leases was as follows: December 31, 2020 (Dollars in thousands) Supplemental balance sheet information Operating lease right-of-use assets $ 2,479 Operating lease liabilities $ 2,512 Weighted average remaining lease term 5.24 years Weighted average discount rate 1.99 % Three Months Ended December 31, 2020 (In thousands) Supplemental cash flow information Operating cash flows from operating leases $ 172 ROU assets obtained in exchange for lease obligations $ 3,279 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities were as follows: Operating Leases (In thousands) Period Ending September 30, Remainder of 2021 $ 426 2022 492 2023 474 2024 474 2025 477 Thereafter 269 Total lease payments $ 2,612 Less: imputed interest (100 ) Total $ 2,512 |
Risks and Uncertainties (Narrat
Risks and Uncertainties (Narrative) (Detail) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020USD ($)Number | Sep. 30, 2020USD ($)Number | Mar. 31, 2021USD ($) | Mar. 27, 2020USD ($) | Dec. 31, 2019USD ($) | |
Unusual Risk Or Uncertainty [Line Items] | |||||
Number of loan modification agreements | Number | 28 | 26 | |||
Loans outstanding | $ 1,002,508,000 | $ 1,039,001,000 | $ 1,001,763,000 | ||
Non-accrual loans | $ 16,240,000 | $ 16,730,000 | |||
Commercial Real Estate [Member] | |||||
Unusual Risk Or Uncertainty [Line Items] | |||||
Number of loan modification agreements | Number | 5 | 5 | |||
Loans outstanding | $ 478,808,000 | $ 495,398,000 | $ 521,495,000 | ||
Non-accrual loans | 14,042,000 | $ 14,414,000 | |||
Subsequent Event [Member] | Commercial Real Estate [Member] | |||||
Unusual Risk Or Uncertainty [Line Items] | |||||
Non-accrual loans | $ 13,400 | ||||
Paycheck Protection Program Loans [Member] | |||||
Unusual Risk Or Uncertainty [Line Items] | |||||
Initial amount of loan funded | $ 349,000,000,000 | ||||
Small Business Administration, CARES Act, Paycheck Protection Program [Member] | |||||
Unusual Risk Or Uncertainty [Line Items] | |||||
Gain on sale of loans | 202,000 | ||||
Proceeds from sale of loans | $ 19,700,000 | ||||
Loan Modification Agreements [Member] | |||||
Unusual Risk Or Uncertainty [Line Items] | |||||
Initial payment and deferrals forbearance period | 3 months | ||||
Maximum additional period of second forbearance | 90 days | ||||
Number of loan modification agreements | Number | 16 | 43 | |||
Loans outstanding | $ 68,900,000 | $ 144,800,000 | |||
Percentage of loans outstanding | 6.90% | 13.90% |
Non-Interest Income - Schedule
Non-Interest Income - Schedule of Company's Non-Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Rental income | $ 54 | $ 54 |
Net gains on sale and call of investments | 355 | |
Net gains on sale of loans | 404 | 3 |
Earnings on bank-owned life insurance | 164 | 127 |
Non-interest income within the scope of other GAAP topics | 977 | 184 |
Non-interest income from contracts with customers | 247 | 259 |
Total Other Income | 1,224 | 443 |
ATM Fees [Member] | ||
Non-interest income from contracts with customers | 3 | 2 |
Credit Card Fee Income [Member] | ||
Non-interest income from contracts with customers | 5 | 6 |
DDA Fee Income [Member] | ||
Non-interest income from contracts with customers | 22 | 30 |
DDA Service Fees [Member] | ||
Non-interest income from contracts with customers | 24 | 19 |
Debit Card Fees [Member] | ||
Non-interest income from contracts with customers | 64 | 66 |
Other Loan Fee Income [Member] | ||
Non-interest income from contracts with customers | 72 | 77 |
Other Fee Income [Member] | ||
Non-interest income from contracts with customers | 55 | 57 |
Other Non-interest Income [Member] | ||
Non-interest income from contracts with customers | $ 2 | $ 2 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Restricted shares issued | 0 | 1,764 |
Stock options | 0 | 0 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net Income | $ 2,273 | $ 785 |
Weighted average shares outstanding | 7,609,953 | 7,764,383 |
Average unearned ESOP shares | (84,145) | (98,541) |
Basic weighted average shares outstanding | 7,525,808 | 7,665,842 |
Plus: effect of potential dilutive common stock equivalents - stock options | 568 | |
Diluted weighted average common shares outstanding | 7,526,376 | 7,665,842 |
Earnings per common share: | ||
Basic | $ 0.30 | $ 0.10 |
Diluted | $ 0.30 | $ 0.10 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 4 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2008 | |
Employee Stock Ownership Plan (ESOP), Shares In ESOP [Abstract] | |||
Employee stock ownership plan (ESOP), shares purchased | 241,178 | ||
Employee stock ownership plan (ESOP), amount borrowed | $ 2.6 | ||
Average price of shares purchased (in dollars per share) | $ 10.86 | ||
Employee stock ownership plan (ESOP), debt structure, direct loan, description | The ESOP loan, which bears an interest rate of 5%, is being repaid in quarterly installments through 2026 principally from the Bank’s contributions to the ESOP. | ||
Committed to be released ESOP shares | 3,600 | 3,600 | |
Number of unallocated shares | 82,365 | ||
Number of allocated shares held by the ESOP | 176,853 | ||
Aggregate fair value of shares held by the ESOP | $ 1.3 |
Investment Securities (Detail)
Investment Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Amortized Cost | $ 35,239 | $ 31,658 |
Gross Unrealized Gains | 233 | 201 |
Gross Unrealized Losses | (248) | (318) |
Fair value | 35,224 | 31,541 |
Amortized Cost | 14,161 | 14,970 |
Gross Unrealized Gains | 584 | 638 |
Fair value | 14,745 | 15,608 |
Total investment securities Amortized Cost | 49,400 | 46,628 |
Total investment securities Gross Unrealized Gains | 817 | 839 |
Total investment securities Gross Unrealized Losses | (248) | (318) |
Total investment securities Fair Value | 49,969 | 47,149 |
U. S. Government Agencies [Member] | ||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Amortized Cost | 5,012 | 5,025 |
Gross Unrealized Gains | 8 | 15 |
Fair value | 5,020 | 5,040 |
State And Municipal Obligations [Member] | ||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Amortized Cost | 2,675 | 3,101 |
Gross Unrealized Gains | 3 | 4 |
Fair value | 2,678 | 3,105 |
Amortized Cost | 1,785 | 1,794 |
Gross Unrealized Gains | 128 | 129 |
Fair value | 1,913 | 1,923 |
Single Issuer Trust Preferred Security [Member] | ||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized Losses | (92) | (75) |
Fair value | 908 | 925 |
Corporate Debt Securities [Member] | ||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Amortized Cost | 25,032 | 21,009 |
Gross Unrealized Gains | 222 | 182 |
Gross Unrealized Losses | (156) | (243) |
Fair value | 25,098 | 20,948 |
Amortized Cost | 3,469 | 3,498 |
Gross Unrealized Gains | 233 | 260 |
Fair value | 3,702 | 3,758 |
Mutual Fund [Member] | ||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Amortized Cost | 1,520 | 1,523 |
Fair value | 1,520 | 1,523 |
Collateralized Mortgage Obligations [Member] | Fixed Rate [Member] | ||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Amortized Cost | 8,907 | 9,678 |
Gross Unrealized Gains | 223 | 249 |
Fair value | $ 9,130 | $ 9,927 |
Investment Securities - (Narrat
Investment Securities - (Narrative) (Detail) | 3 Months Ended | ||
Dec. 31, 2020USD ($)Investment | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | |
Marketable Securities [Line Items] | |||
Sales | $ 6,830,000 | $ 0 | |
Gain on sale of securities available for sale | 355,000 | ||
Fair value of available for sale securities transferred | 9,400,000 | $ 4,600,000 | |
Fair value of available for sale securities short-term borrowings transferred | 0 | 0 | |
Carrying value of investment securities pledged against hedge | $ 0 | $ 0 | |
Corporate Debt Securities [Member] | |||
Marketable Securities [Line Items] | |||
Number of portfolio investments | Investment | 4 | ||
Single Issuer Trust Preferred Security [Member] | |||
Marketable Securities [Line Items] | |||
Number of portfolio investments | Investment | 1 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Total investment securities in an unrealized loss position less than 12 months fair value | $ 2,495 | $ 4,426 |
Total investment securities in an unrealized loss position less than 12 months gross unrealized loss | (5) | (74) |
Total investment securities in an unrealized loss position 12 months or more fair value | 4,257 | 4,255 |
Total investment securities in an unrealized loss position 12 months or more gross unrealized loss | (243) | (244) |
Total investment securities in an unrealized loss position fair value | 6,752 | 8,681 |
Total investment securities in an unrealized loss position gross unrealized loss | (248) | (318) |
Single Issuer Trust Preferred Security [Member] | ||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
12 Months or longer: Fair Value | 908 | 925 |
12 Months or longer: Unrealized Losses | (92) | (75) |
Total: Fair Value | 908 | 925 |
Total: Unrealized Losses | (92) | (75) |
Corporate Debt Securities [Member] | ||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Less than 12 Months: Fair Value | 2,495 | 4,426 |
Less than 12 Months: Unrealized Losses | (5) | (74) |
12 Months or longer: Fair Value | 3,349 | 3,330 |
12 Months or longer: Unrealized Losses | (151) | (169) |
Total: Fair Value | 5,844 | 7,756 |
Total: Unrealized Losses | $ (156) | $ (243) |
Investment Securities - Schedul
Investment Securities - Schedule maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Available for Sale, Amortized Cost: | ||
Over 1 year through five years | $ 6,675 | |
After 5 years through ten years | 22,052 | |
Over 10 years | 6,512 | |
Amortized Cost | 35,239 | $ 31,658 |
Held-to-Maturity, Amortized Cost: | ||
Over 1 year through five years | 4,581 | |
After 5 years through ten years | 1,098 | |
CMO, fixed-rate | 8,482 | |
Amortized Cost | 14,161 | 14,970 |
Total investment securities Amortized Cost | 49,400 | 46,628 |
Available-for-Sale, Fair Value: | ||
Over 1 year through five years | 6,528 | |
After 5 years through ten years | 22,178 | |
Over 10 years | 6,518 | |
Available-for-sale, Fair Value, Total | 35,224 | 31,541 |
Held-to-Maturity, Fair Value: | ||
Over 1 year through five years | 4,892 | |
After 5 years through ten years | 1,161 | |
Mortgage-backed securities: | ||
CMO, fixed-rate | 8,692 | |
Held-to-Maturity, Fair Value, Total | 14,745 | 15,608 |
Total investment securities, Fair Value | $ 49,969 | $ 47,149 |
Loans Receivable and Related _3
Loans Receivable and Related Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable, Impaired [Line Items] | ||||
Total loans | $ 1,002,508 | $ 1,039,001 | $ 1,001,763 | |
Deferred loan fees and costs, net | 873 | 326 | ||
Allowance for loan losses | (13,035) | (12,433) | (9,962) | $ (10,095) |
Total loans receivable, net | 990,346 | 1,026,894 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 101,852 | 116,584 | 99,494 | |
Allowance for loan losses | (600) | (578) | (464) | (615) |
Residential Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 232,481 | 242,090 | 234,738 | |
Allowance for loan losses | (1,603) | (1,667) | (1,282) | (1,364) |
Construction and Development - Residential and Commercial Receivables [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 73,000 | 65,703 | 49,095 | |
Allowance for loan losses | (508) | (465) | (585) | (523) |
Construction and Development - Land Receivable [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 3,648 | 3,110 | 3,625 | |
Allowance for loan losses | (24) | (23) | (18) | (20) |
Construction And Development Receivable [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 76,648 | 68,813 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 478,808 | 495,398 | 521,495 | |
Allowance for loan losses | (7,973) | (8,682) | (6,194) | (5,903) |
Commercial Farmland [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 7,378 | 7,517 | 7,563 | |
Allowance for loan losses | (352) | (47) | (38) | (49) |
Commercial Multi Family Receivable [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 67,457 | 67,767 | 43,473 | |
Allowance for loan losses | (508) | (511) | (196) | (369) |
Commercial - Other Receivable [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 10,010 | 10,142 | 8,569 | |
Allowance for loan losses | (50) | (51) | (33) | (21) |
Commercial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 665,505 | 697,408 | ||
Consumer - Home Equity Lines of Credit [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 16,389 | 17,128 | 18,372 | |
Allowance for loan losses | (125) | (130) | (101) | (122) |
Consumer - Second Mortgages Receivable [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 9,097 | 10,711 | 13,179 | |
Allowance for loan losses | (179) | (196) | (235) | (267) |
Consumer - Other Receivable [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | 2,388 | 2,851 | 2,160 | |
Allowance for loan losses | (25) | (29) | $ (23) | $ (23) |
Consumer Receivable [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total loans | $ 27,874 | $ 30,690 |
Loans Receivable and Related _4
Loans Receivable and Related Allowance for Loan Losses (1) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | $ 12,433 | $ 10,095 | $ 10,095 |
Charge-offs | (1) | (2,290) | (8,396) |
Recoveries | 53 | 7 | 124 |
Provisions | 550 | 2,150 | 10,610 |
Allowance for credit losses, Ending Balance | 13,035 | 9,962 | 12,433 |
Allowance for credit losses: Ending balance: individually evaluated for impairment | 604 | 210 | 308 |
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 12,431 | 9,752 | 12,125 |
Loans receivable | 1,002,508 | 1,001,763 | 1,039,001 |
Loans receivable: Ending balance: individually evaluated for impairment | 32,542 | 12,107 | 30,222 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 969,966 | 989,656 | 1,008,779 |
Commercial and Industrial [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | 578 | 615 | 615 |
Recoveries | 1 | 2 | |
Provisions | 21 | (151) | (39) |
Allowance for credit losses, Ending Balance | 600 | 464 | 578 |
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 600 | 464 | 578 |
Loans receivable | 101,852 | 99,494 | 116,584 |
Loans receivable: Ending balance: individually evaluated for impairment | 549 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 101,303 | 99,494 | 116,584 |
Residential Mortgage [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | 1,667 | 1,364 | 1,364 |
Recoveries | 1 | 25 | |
Provisions | (65) | (82) | 278 |
Allowance for credit losses, Ending Balance | 1,603 | 1,282 | 1,667 |
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 1,603 | 1,282 | 1,667 |
Loans receivable | 232,481 | 234,738 | 242,090 |
Loans receivable: Ending balance: individually evaluated for impairment | 3,721 | 3,527 | 3,388 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 228,760 | 231,211 | 238,702 |
Construction and Development - Residential and Commercial Receivables [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | 465 | 523 | 523 |
Provisions | 43 | 62 | (58) |
Allowance for credit losses, Ending Balance | 508 | 585 | 465 |
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 508 | 585 | 465 |
Loans receivable | 73,000 | 49,095 | 65,703 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 73,000 | 49,095 | 65,703 |
Construction and Development - Land Receivable [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | 23 | 20 | 20 |
Provisions | 1 | (2) | 3 |
Allowance for credit losses, Ending Balance | 24 | 18 | 23 |
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 24 | 18 | 23 |
Loans receivable | 3,648 | 3,625 | 3,110 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 3,648 | 3,625 | 3,110 |
Commercial Real Estate [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | 8,682 | 5,903 | 5,903 |
Charge-offs | (2,288) | (8,330) | |
Recoveries | 1 | 1 | 6 |
Provisions | (710) | 2,578 | 11,103 |
Allowance for credit losses, Ending Balance | 7,973 | 6,194 | 8,682 |
Allowance for credit losses: Ending balance: individually evaluated for impairment | 209 | 112 | 227 |
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 7,764 | 6,082 | 8,455 |
Loans receivable | 478,808 | 521,495 | 495,398 |
Loans receivable: Ending balance: individually evaluated for impairment | 25,547 | 7,649 | 25,926 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 453,261 | 513,846 | 469,472 |
Commercial Farmland [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | 47 | 49 | 49 |
Provisions | 305 | (11) | (2) |
Allowance for credit losses, Ending Balance | 352 | 38 | 47 |
Allowance for credit losses: Ending balance: individually evaluated for impairment | 317 | ||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 35 | 38 | 47 |
Loans receivable | 7,378 | 7,563 | 7,517 |
Loans receivable: Ending balance: individually evaluated for impairment | 2,287 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 5,091 | 7,563 | 7,517 |
Commercial Multi Family Receivable [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | 511 | 369 | 369 |
Provisions | (3) | (173) | 142 |
Allowance for credit losses, Ending Balance | 508 | 196 | 511 |
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 508 | 196 | 511 |
Loans receivable | 67,457 | 43,473 | 67,767 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 67,457 | 43,473 | 67,767 |
Commercial - Other Receivable [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | 51 | 21 | 21 |
Provisions | (1) | 12 | 30 |
Allowance for credit losses, Ending Balance | 50 | 33 | 51 |
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 50 | 33 | 51 |
Loans receivable | 10,010 | 8,569 | 10,142 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 10,010 | 8,569 | 10,142 |
Consumer - Home Equity Lines of Credit [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | 130 | 122 | 122 |
Charge-offs | (62) | ||
Recoveries | 1 | ||
Provisions | (5) | (21) | 69 |
Allowance for credit losses, Ending Balance | 125 | 101 | 130 |
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 125 | 101 | 130 |
Loans receivable | 16,389 | 18,372 | 17,128 |
Loans receivable: Ending balance: individually evaluated for impairment | 73 | 29 | 26 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 16,316 | 18,343 | 17,102 |
Consumer - Second Mortgages Receivable [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | 196 | 267 | 267 |
Charge-offs | (2) | (3) | |
Recoveries | 50 | 6 | 88 |
Provisions | (67) | (36) | (156) |
Allowance for credit losses, Ending Balance | 179 | 235 | 196 |
Allowance for credit losses: Ending balance: individually evaluated for impairment | 78 | 98 | 81 |
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 101 | 137 | 115 |
Loans receivable | 9,097 | 13,179 | 10,711 |
Loans receivable: Ending balance: individually evaluated for impairment | 365 | 902 | 882 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 8,732 | 12,277 | 9,829 |
Consumer - Other Receivable [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | 29 | 23 | 23 |
Charge-offs | (1) | (1) | |
Recoveries | 2 | ||
Provisions | (3) | 5 | |
Allowance for credit losses, Ending Balance | 25 | 23 | 29 |
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 25 | 23 | 29 |
Loans receivable | 2,388 | 2,160 | 2,851 |
Loans Receivable: Ending balance: collectively evaluated for impairment | 2,388 | 2,160 | 2,851 |
Unallocated [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses, Beginning balance | 54 | 819 | 819 |
Provisions | 1,034 | (26) | (765) |
Allowance for credit losses, Ending Balance | 1,088 | 793 | 54 |
Allowance for credit losses: Ending balance: collectively evaluated for impairment | $ 1,088 | $ 793 | $ 54 |
Loans Receivable and Related _5
Loans Receivable and Related Allowance for Loan Losses (Narrative) (Detail) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020USD ($)Number | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($)Number | |
Financing Receivable, Impaired [Line Items] | |||
Impaired loans | $ 32,542,000 | $ 30,222,000 | |
Non-accrual loans interest income | 138,000 | $ 17,000 | |
Loans past due 90 days or more and still accruing interest | $ 775,000 | $ 58,000 | |
Number of loans | Number | 28 | 26 | |
Financing receivable, collateral dependent TDR loan | $ 24,372,000 | $ 21,687,000 | |
Number of loans | Number | 16 | 43 | |
Aggregate principal balance | $ 68,900,000 | $ 144,800,000 | |
Commercial Farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired loans | $ 2,287,000 | ||
Number of loans | Number | 1 | ||
Financing receivable, collateral dependent TDR loan | $ 2,287,000 | ||
Number of loans | Number | 1 | ||
Construction and Development - Residential and Commercial Receivables [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Real estate through foreclosure | $ 624,000 | $ 175,000 |
Loans Receivable and Related _6
Loans Receivable and Related Allowance for Loan Losses (2) (Detail) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | $ 2,749,000 | $ 777,000 |
Impaired Loans With Specific Allowance, Related Allowance | 604,000 | 308,000 |
Impaired Loans With No Specific Allowance, Recorded Investment | 29,793,000 | 29,445,000 |
Total Impaired Loans Recorded Investment | 32,542,000 | 30,222,000 |
Total Impaired Loans Unpaid Principal Balance | 37,826,000 | 41,522,000 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With No Specific Allowance, Recorded Investment | 549,000 | |
Total Impaired Loans Recorded Investment | 549,000 | |
Total Impaired Loans Unpaid Principal Balance | 549,000 | |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With No Specific Allowance, Recorded Investment | 3,721,000 | 3,388,000 |
Total Impaired Loans Recorded Investment | 3,721,000 | 3,388,000 |
Total Impaired Loans Unpaid Principal Balance | 3,979,000 | 3,598,000 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | 363,000 | 676,000 |
Impaired Loans With Specific Allowance, Related Allowance | 209,000 | 227,000 |
Impaired Loans With No Specific Allowance, Recorded Investment | 25,184,000 | 25,250,000 |
Total Impaired Loans Recorded Investment | 25,547,000 | 25,926,000 |
Total Impaired Loans Unpaid Principal Balance | 30,519,000 | 36,945,000 |
Consumer - Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With No Specific Allowance, Recorded Investment | 73,000 | 26,000 |
Total Impaired Loans Recorded Investment | 73,000 | 26,000 |
Total Impaired Loans Unpaid Principal Balance | 77,000 | 30,000 |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | 99,000 | 101,000 |
Impaired Loans With Specific Allowance, Related Allowance | 78,000 | 81,000 |
Impaired Loans With No Specific Allowance, Recorded Investment | 266,000 | 781,000 |
Total Impaired Loans Recorded Investment | 365,000 | 882,000 |
Total Impaired Loans Unpaid Principal Balance | 415,000 | $ 949,000 |
Commercial Farmland [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | 2,287,000 | |
Impaired Loans With Specific Allowance, Related Allowance | 317,000 | |
Total Impaired Loans Recorded Investment | 2,287,000 | |
Total Impaired Loans Unpaid Principal Balance | $ 2,287,000 |
Loans Receivable and Related _7
Loans Receivable and Related Allowance for Loan Losses (3) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | $ 30,940 | $ 13,502 |
Interest Income Recognized on Impaired Loans | 123 | 46 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | 185 | |
Interest Income Recognized on Impaired Loans | 2 | |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | 3,483 | 3,532 |
Interest Income Recognized on Impaired Loans | 15 | 22 |
Commercial Farmland [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | 771 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | 25,727 | 9,096 |
Interest Income Recognized on Impaired Loans | 105 | 15 |
Consumer - Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | 74 | 29 |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | 700 | 845 |
Interest Income Recognized on Impaired Loans | $ 1 | $ 9 |
Loans Receivable and Related _8
Loans Receivable and Related Allowance for Loan Losses (4) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | $ 1,002,508 | $ 1,039,001 | $ 1,001,763 |
Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 892,531 | 945,002 | |
Special Mention [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 62,574 | 62,818 | |
Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 47,403 | 31,181 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 101,852 | 116,584 | 99,494 |
Commercial and Industrial [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 94,914 | 110,099 | |
Commercial and Industrial [Member] | Special Mention [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 6,277 | 6,368 | |
Commercial and Industrial [Member] | Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 661 | 117 | |
Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 232,481 | 242,090 | 234,738 |
Residential Mortgage [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 228,646 | 238,610 | |
Residential Mortgage [Member] | Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 3,835 | 3,480 | |
Construction and Development - Residential and Commercial Receivables [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 73,000 | 65,703 | 49,095 |
Construction and Development - Residential and Commercial Receivables [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 73,000 | 65,703 | |
Construction and Development - Land Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 3,648 | 3,110 | 3,625 |
Construction and Development - Land Receivable [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 3,648 | 3,110 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 478,808 | 495,398 | 521,495 |
Commercial Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 392,611 | 422,143 | |
Commercial Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 46,790 | 46,892 | |
Commercial Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 39,407 | 26,363 | |
Commercial Farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 7,378 | 7,517 | 7,563 |
Commercial Farmland [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 5,091 | 7,517 | |
Commercial Farmland [Member] | Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 2,287 | ||
Commercial Multi Family Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 67,457 | 67,767 | 43,473 |
Commercial Multi Family Receivable [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 58,025 | 58,285 | |
Commercial Multi Family Receivable [Member] | Special Mention [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 9,432 | 9,482 | |
Commercial - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 10,010 | 10,142 | 8,569 |
Commercial - Other Receivable [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 10,010 | 10,142 | |
Consumer - Home Equity Lines of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 16,389 | 17,128 | 18,372 |
Consumer - Home Equity Lines of Credit [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 16,232 | 16,969 | |
Consumer - Home Equity Lines of Credit [Member] | Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 157 | 159 | |
Consumer - Second Mortgages Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 9,097 | 10,711 | 13,179 |
Consumer - Second Mortgages Receivable [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 7,966 | 9,573 | |
Consumer - Second Mortgages Receivable [Member] | Special Mention [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 75 | 76 | |
Consumer - Second Mortgages Receivable [Member] | Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 1,056 | 1,062 | |
Consumer - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 2,388 | 2,851 | $ 2,160 |
Consumer - Other Receivable [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | $ 2,388 | $ 2,851 |
Loans Receivable and Related _9
Loans Receivable and Related Allowance for Loan Losses (5) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | $ 16,240 | $ 16,730 |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | 1,916 | 2,036 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | 14,042 | 14,414 |
Consumer - Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | 73 | 26 |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | $ 209 | $ 254 |
Loans Receivable and Related_10
Loans Receivable and Related Allowance for Loan Losses (6) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Impaired [Line Items] | |||
Current | $ 979,050 | $ 1,035,788 | |
Past Due | 23,458 | 3,213 | |
Total Loans Receivable | 1,002,508 | 1,039,001 | $ 1,001,763 |
Accruing 90 Days or More Past Due | 775 | 58 | |
30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 21,062 | 225 | |
60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 574 | 728 | |
Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 1,822 | 2,260 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 98,898 | 116,584 | |
Past Due | 2,954 | ||
Total Loans Receivable | 101,852 | 116,584 | 99,494 |
Commercial and Industrial [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 2,954 | ||
Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 228,711 | 239,623 | |
Past Due | 3,770 | 2,467 | |
Total Loans Receivable | 232,481 | 242,090 | 234,738 |
Accruing 90 Days or More Past Due | 710 | ||
Residential Mortgage [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 1,678 | 68 | |
Residential Mortgage [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 520 | 694 | |
Residential Mortgage [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 1,572 | 1,705 | |
Construction and Development - Residential and Commercial Receivables [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 73,000 | 65,703 | |
Total Loans Receivable | 73,000 | 65,703 | 49,095 |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 464,949 | 495,087 | |
Past Due | 13,859 | 311 | |
Total Loans Receivable | 478,808 | 495,398 | 521,495 |
Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 13,859 | ||
Commercial Real Estate [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 311 | ||
Commercial Farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 5,091 | 7,517 | |
Past Due | 2,287 | ||
Total Loans Receivable | 7,378 | 7,517 | 7,563 |
Commercial Farmland [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 2,287 | ||
Commercial Multi Family Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 67,457 | 67,767 | |
Total Loans Receivable | 67,457 | 67,767 | 43,473 |
Commercial - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 10,010 | 10,142 | |
Total Loans Receivable | 10,010 | 10,142 | 8,569 |
Consumer - Home Equity Lines of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 16,230 | 17,080 | |
Past Due | 159 | 48 | |
Total Loans Receivable | 16,389 | 17,128 | 18,372 |
Accruing 90 Days or More Past Due | 48 | ||
Consumer - Home Equity Lines of Credit [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 86 | ||
Consumer - Home Equity Lines of Credit [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 73 | 48 | |
Consumer - Second Mortgages Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 8,669 | 10,325 | |
Past Due | 428 | 386 | |
Total Loans Receivable | 9,097 | 10,711 | 13,179 |
Accruing 90 Days or More Past Due | 65 | 10 | |
Consumer - Second Mortgages Receivable [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 197 | 157 | |
Consumer - Second Mortgages Receivable [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 54 | 33 | |
Consumer - Second Mortgages Receivable [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 177 | 196 | |
Consumer - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 2,387 | 2,850 | |
Past Due | 1 | 1 | |
Total Loans Receivable | 2,388 | 2,851 | 2,160 |
Consumer - Other Receivable [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 1 | ||
Consumer - Other Receivable [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 1 | ||
Construction and Development - Land Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 3,648 | 3,110 | |
Total Loans Receivable | $ 3,648 | $ 3,110 | $ 3,625 |
Loans Receivable and Related_11
Loans Receivable and Related Allowance for Loan Losses (7) (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2020USD ($)Number | Sep. 30, 2020USD ($)Number | |
Financing Receivable, Impaired [Line Items] | ||
Total Troubled Debt Restructurings, Number of Loans | Number | 28 | 26 |
Total Troubled Debt Restructurings, Recorded Investment | $ | $ 24,372 | $ 21,687 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Number of Loans | Number | 8 | 8 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Recorded Investment | $ | $ 8,144 | $ 8,269 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Troubled Debt Restructurings, Number of Loans | Number | 1 | |
Total Troubled Debt Restructurings, Recorded Investment | $ | $ 549 | |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Troubled Debt Restructurings, Number of Loans | Number | 17 | 17 |
Total Troubled Debt Restructurings, Recorded Investment | $ | $ 3,359 | $ 3,435 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Number of Loans | Number | 7 | 7 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Recorded Investment | $ | $ 1,553 | $ 1,617 |
Commercial Farmland [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Troubled Debt Restructurings, Number of Loans | Number | 1 | |
Total Troubled Debt Restructurings, Recorded Investment | $ | $ 2,287 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Troubled Debt Restructurings, Number of Loans | Number | 5 | 5 |
Total Troubled Debt Restructurings, Recorded Investment | $ | $ 18,021 | $ 18,091 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Number of Loans | Number | 1 | 1 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Recorded Investment | $ | $ 6,591 | $ 6,652 |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Troubled Debt Restructurings, Number of Loans | Number | 4 | 4 |
Total Troubled Debt Restructurings, Recorded Investment | $ | $ 156 | $ 161 |
Loans Receivable and Related_12
Loans Receivable and Related Allowance for Loan Losses (8) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Recorded Investment | $ 24,372 | $ 21,687 |
Performing Financing Receivable [Member] | ||
Recorded Investment | 16,229 | 13,418 |
Nonperforming Financing Receivable [Member] | ||
Recorded Investment | 8,144 | 8,269 |
Commercial and Industrial [Member] | ||
Recorded Investment | 549 | |
Commercial and Industrial [Member] | Performing Financing Receivable [Member] | ||
Recorded Investment | 549 | |
Residential Mortgage [Member] | ||
Recorded Investment | 3,359 | 3,435 |
Residential Mortgage [Member] | Performing Financing Receivable [Member] | ||
Recorded Investment | 1,806 | 1,818 |
Residential Mortgage [Member] | Nonperforming Financing Receivable [Member] | ||
Recorded Investment | 1,553 | 1,617 |
Commercial Farmland [Member] | ||
Recorded Investment | 2,287 | |
Commercial Farmland [Member] | Performing Financing Receivable [Member] | ||
Recorded Investment | 2,287 | |
Commercial Real Estate [Member] | ||
Recorded Investment | 18,021 | 18,091 |
Commercial Real Estate [Member] | Performing Financing Receivable [Member] | ||
Recorded Investment | 11,431 | 11,439 |
Commercial Real Estate [Member] | Nonperforming Financing Receivable [Member] | ||
Recorded Investment | 6,591 | 6,652 |
Consumer - Second Mortgages Receivable [Member] | ||
Recorded Investment | 156 | 161 |
Consumer - Second Mortgages Receivable [Member] | Performing Financing Receivable [Member] | ||
Recorded Investment | $ 156 | $ 161 |
Loans Receivable and Related_13
Loans Receivable and Related Allowance for Loan Losses (9) (Detail) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020USD ($)Number | Dec. 31, 2019USD ($)Number | |
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | Number | 2 | 2 |
Pre-Modifications Outstanding Recorded Investment | $ 2,836 | $ 502 |
Post-Modification Outstanding Recorded Investment | $ 2,836 | $ 502 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | Number | 1 | |
Pre-Modifications Outstanding Recorded Investment | $ 549 | |
Post-Modification Outstanding Recorded Investment | $ 549 | |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | Number | 1 | |
Pre-Modifications Outstanding Recorded Investment | $ 207 | |
Post-Modification Outstanding Recorded Investment | $ 207 | |
Commercial Farmland [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | Number | 1 | |
Pre-Modifications Outstanding Recorded Investment | $ 2,287 | |
Post-Modification Outstanding Recorded Investment | $ 2,287 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Contracts | Number | 1 | |
Pre-Modifications Outstanding Recorded Investment | $ 295 | |
Post-Modification Outstanding Recorded Investment | $ 295 |
Loans Receivable and Related_14
Loans Receivable and Related Allowance for Loan Losses (10) (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2020USD ($)Number | Sep. 30, 2020USD ($)Number | |
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 16 | 43 |
Loan Deferment Exposure | $ 68,903 | $ 144,785 |
Gross Loans | $ 1,002,508 | $ 1,039,001 |
Percentage of Gross Loans on Deferral | 6.87% | 13.94% |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 1 | 10 |
Loan Deferment Exposure | $ 22 | $ 5,547 |
Gross Loans | $ 101,852 | $ 116,584 |
Percentage of Gross Loans on Deferral | 0.00% | 0.53% |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 5 | 5 |
Loan Deferment Exposure | $ 934 | $ 1,288 |
Gross Loans | $ 232,481 | $ 242,090 |
Percentage of Gross Loans on Deferral | 0.09% | 0.12% |
Construction and Development - Residential and Commercial Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Gross Loans | $ 73,000 | $ 65,703 |
Percentage of Gross Loans on Deferral | 0.00% | 0.00% |
Construction and Development - Land Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Gross Loans | $ 3,648 | $ 3,110 |
Percentage of Gross Loans on Deferral | 0.00% | 0.00% |
Construction And Development Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Gross Loans | $ 76,648 | $ 68,813 |
Percentage of Gross Loans on Deferral | 0.00% | 0.00% |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 7 | 21 |
Loan Deferment Exposure | $ 67,082 | $ 131,348 |
Gross Loans | $ 478,808 | $ 495,398 |
Percentage of Gross Loans on Deferral | 6.69% | 12.64% |
Commercial Farmland [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 1 | |
Loan Deferment Exposure | $ 2,288 | |
Gross Loans | $ 7,378 | $ 7,517 |
Percentage of Gross Loans on Deferral | 0.00% | 0.22% |
Commercial Multi Family Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 1 | 2 |
Loan Deferment Exposure | $ 717 | $ 3,718 |
Gross Loans | $ 67,457 | $ 67,767 |
Percentage of Gross Loans on Deferral | 0.08% | 0.36% |
Commercial - Other Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Gross Loans | $ 10,010 | $ 10,142 |
Percentage of Gross Loans on Deferral | 0.00% | 0.00% |
Commercial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 9 | 34 |
Loan Deferment Exposure | $ 67,821 | $ 142,901 |
Gross Loans | $ 665,505 | $ 697,408 |
Percentage of Gross Loans on Deferral | 6.77% | 13.75% |
Consumer - Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 1 | 3 |
Loan Deferment Exposure | $ 131 | $ 579 |
Gross Loans | $ 16,389 | $ 17,128 |
Percentage of Gross Loans on Deferral | 0.01% | 0.06% |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 1 | 1 |
Loan Deferment Exposure | $ 17 | $ 17 |
Gross Loans | $ 9,097 | $ 10,711 |
Percentage of Gross Loans on Deferral | 0.00% | 0.00% |
Consumer - Other Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Gross Loans | $ 2,388 | $ 2,851 |
Percentage of Gross Loans on Deferral | 0.00% | 0.00% |
Consumer Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 2 | 4 |
Loan Deferment Exposure | $ 148 | $ 596 |
Gross Loans | $ 27,874 | $ 30,690 |
Percentage of Gross Loans on Deferral | 0.01% | 0.06% |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Detail) - Malvern Federal Savings Bank [Member] | Dec. 31, 2020 | Sep. 30, 2020 | Jan. 01, 2019 | Jan. 01, 2016 | Jan. 01, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Common equity Tier 1 capital ratio | 7 | 4.5 | 4 | |||
Tier 1 capital ratio | 6 | 6 | 8.5 | 6 | ||
Tier 1 Capital conservation buffer | 2.50% | |||||
Total capital ratio | 17 | 16.64 | 10.5 | |||
Capital conservation buffer percentage of risk-weighted assets | 0.625% |
Regulatory Matters (Detail)
Regulatory Matters (Detail) $ in Thousands | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jan. 01, 2016 | Jan. 01, 2015 |
Parent Company [Member] | ||||
Capital (to adjusted tangible assets): Actual Amount | $ 144,059 | $ 141,681 | ||
Common equity Tier 1(to risk-weighted assets): Actual Amount | 144,059 | 141,681 | ||
Tier 1 Capital (to risk-weighted assets): Actual Amount | 144,059 | 141,681 | ||
Total Capital (to risk-weighted assets): Actual Amount | $ 151,478 | $ 178,972 | ||
Capital (to adjusted tangible assets): Actual Ratio | 11.76 | 11.63 | ||
Common equity Tier 1(to risk-weighted assets): Actual Ratio | 14.30 | 14 | ||
Tier 1 Capital (to risk-weighted assets): Actual Ratio | 14.30 | 14 | ||
Total Capital (to risk-weighted assets): Actual Ratio | 18.01 | 17.69 | ||
Capital (to adjusted tangible assets): For Capital Adequacy Purposes Amount | $ 48,991 | $ 48,473 | ||
Common Equity Tier 1 Capital (to risk weighted assets) | 45,347 | 45,528 | ||
Tier 1 Capital (to risk weighted assets) | 60,462 | 60,704 | ||
Total Capital (to risk weighted assets) | $ 80,616 | $ 80,939 | ||
Capital (to adjusted tangible assets): For Capital Adequacy Purposes Ratio | 4 | 4 | ||
Common Equity Tier 1 Capital (to risk weighted assets) | 4.50 | 4.50 | ||
Tier 1 Capital (to risk weighted assets) | 6 | 6 | ||
Total Capital (to risk weighted assets) | 8 | 8 | ||
Malvern Federal Savings Bank [Member] | ||||
Capital (to adjusted tangible assets): Actual Amount | $ 158,399 | $ 155,575 | ||
Common equity Tier 1(to risk-weighted assets): Actual Amount | 158,399 | 155,575 | ||
Tier 1 Capital (to risk-weighted assets): Actual Amount | 158,399 | 155,575 | ||
Total Capital (to risk-weighted assets): Actual Amount | $ 170,982 | $ 168,090 | ||
Capital (to adjusted tangible assets): Actual Ratio | 12.95 | 12.78 | ||
Common equity Tier 1(to risk-weighted assets): Actual Ratio | 15.74 | 15.40 | ||
Tier 1 Capital (to risk-weighted assets): Actual Ratio | 15.74 | 15.40 | ||
Total Capital (to risk-weighted assets): Actual Ratio | 17 | 16.64 | 10.5 | |
Capital (to adjusted tangible assets): For Capital Adequacy Purposes Amount | $ 48,929 | $ 48,685 | ||
Common Equity Tier 1 Capital (to risk weighted assets) | 45,272 | 45,459 | ||
Tier 1 Capital (to risk weighted assets) | 60,363 | 60,612 | ||
Total Capital (to risk weighted assets) | $ 80,484 | $ 80,816 | ||
Capital (to adjusted tangible assets): For Capital Adequacy Purposes Ratio | 4 | 4 | ||
Common Equity Tier 1 Capital (to risk weighted assets) | 4.50 | 4.50 | ||
Tier 1 Capital (to risk weighted assets) | 6 | 6 | 8.5 | 6 |
Total Capital (to risk weighted assets) | 8 | 8 | ||
Capital (to adjusted tangible assets): To be Well Capitalized under Prompt Corrective Action Provisions Capital Amount | $ 61,162 | $ 60,856 | ||
Common Equity Tier 1 Capital (to risk weighted assets) | 65,393 | 65,663 | ||
Tier 1 Capital (to risk weighted assets) | 80,484 | 80,816 | ||
Total Capital (to risk weighted assets) | $ 100,605 | $ 101,020 | ||
Capital (to adjusted tangible assets): To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 5 | 5 | ||
Common Equity Tier 1 Capital (to risk weighted assets) | 6.50 | 6.50 | ||
Tier 1 Capital (to risk weighted assets) | 8 | 8 | ||
Total Capital (to risk weighted assets) | 10 | 10 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Narrative) (Detail) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
Derivative [Line Items] | ||
Minimum collateral posting thresholds with derivative counterparties | $ 12,900,000 | $ 12,900,000 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Estimated interest expense | $ 787,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Detail) - Interest Rate Swap Agreements [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Notional Amount, Liability Derivatives | $ 90,000 | $ 90,000 |
Fair Value | 1,017 | 1,291 |
Derivatives Not Designated As Hedging Instrument [Member] | Other Assets [Member] | ||
Notional Amount, Asset Derivatives | 45,060 | 45,162 |
Fair Value | 7,488 | 8,752 |
Derivatives Not Designated As Hedging Instrument [Member] | Other Liabilities [Member] | ||
Notional Amount, Liability Derivatives | 45,060 | 45,162 |
Fair Value | $ 7,492 | $ 8,756 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Schedule of Offsetting of Derivative Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2019 |
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 7,488 | $ 8,752 |
Net Amounts of Assets presented in the Statement of Financial Condition | 7,488 | 8,752 |
Gross Amounts Not Offset in the Statements of Financial Condition, Net Amount | 7,488 | 8,752 |
Offsetting of Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 8,509 | 10,047 |
Net Amounts of Liabilities presented in the Statement of Financial Condition | 8,509 | 10,047 |
Gross Amounts Not Offset in the Statements of Financial Condition, Financial Instruments | 1,230 | 1,498 |
Gross Amounts Not Offset in the Statements of Financial Condition, Cash Collateral Posted | 12,857 | 12,857 |
Gross Amounts Not Offset in the Statements of Financial Condition, Net Amount | $ (5,578) | $ (4,308) |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Statement of Operations Relating to The Cash Flow Derivative Instrument (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Amount of Loss Recognized in OCI on Derivative | $ (8) | $ 77 |
Amount of Gain (Loss) Reclassified from OCI to Interest Expense | (280) | (14) |
Interest Rate Swap Agreements [Member] | ||
Derivative [Line Items] | ||
Amount of Loss Recognized in OCI on Derivative | (8) | 77 |
Amount of Gain (Loss) Reclassified from OCI to Interest Expense | $ (280) | $ (14) |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities - Schedule of Effects of Derivative Instruments on Consolidated Statements of Operations (Detail) - Derivatives Not Designated As Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Amount of Gain (Loss) Recognized in Income on derivatives | $ 1 | $ (3) |
Interest Rate Swap Agreements [Member] | Other Income [Member] | ||
Amount of Gain (Loss) Recognized in Income on derivatives | $ 1 | $ (3) |
Fair Value Measurements (Detail
Fair Value Measurements (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Assets | |||
Investment securities available for sale, at fair value | $ 35,224 | $ 31,541 | |
Derivative instruments | 7,488 | $ 8,752 | |
Liabilities | |||
Derivative instruments | 8,509 | $ 10,047 | |
U. S. Government Agencies [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 5,020 | 5,040 | |
State And Municipal Obligations [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 2,678 | 3,105 | |
Single Issuer Trust Preferred Security [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 908 | 925 | |
Corporate Debt Securities [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 25,098 | 20,948 | |
Mutual Funds [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 1,520 | 1,523 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 35,224 | 31,541 | |
Derivative instruments | 7,488 | 8,752 | |
Liabilities | |||
Derivative instruments | 8,509 | 10,047 | |
Fair Value, Measurements, Recurring [Member] | U. S. Government Agencies [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 5,020 | 5,040 | |
Fair Value, Measurements, Recurring [Member] | State And Municipal Obligations [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 2,678 | 3,105 | |
Fair Value, Measurements, Recurring [Member] | Single Issuer Trust Preferred Security [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 908 | 925 | |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 25,098 | 20,948 | |
Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 1,520 | 1,523 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 1,020 | 1,023 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Funds [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 1,020 | 1,023 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 33,704 | 30,018 | |
Derivative instruments | 7,488 | 8,752 | |
Liabilities | |||
Derivative instruments | 8,509 | 10,047 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U. S. Government Agencies [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 5,020 | 5,040 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | State And Municipal Obligations [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 2,678 | 3,105 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Single Issuer Trust Preferred Security [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 908 | 925 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 25,098 | 20,948 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | 500 | 500 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mutual Funds [Member] | |||
Assets | |||
Investment securities available for sale, at fair value | $ 500 | $ 500 |
Fair Value Measurements (1) (De
Fair Value Measurements (1) (Detail) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Balance, October 1, 2020 | $ 500 | $ 250 |
Purchases | 250 | |
Balance, December 31, 2020 | $ 500 | $ 500 |
Fair Value Measurements (2) (De
Fair Value Measurements (2) (Detail) $ in Thousands | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0 | 0 |
Impaired Loans, Measurement Input | 0.014 | 0.014 |
Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Measurement Input | 0.020 | 0.020 |
Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Measurement Input | 0.20 | 0.20 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring basis | $ 15,393 | $ 13,716 |
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring basis | 5,796 | 5,796 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Net [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring basis | 9,597 | 7,920 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring basis | 15,393 | 13,716 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring basis | 5,796 | 5,796 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Loans Net [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring basis | $ 9,597 | $ 7,920 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Fair Value Disclosures [Abstract] | ||
Impaired Loans with aggregate balance | $ 10,200,000 | $ 8,200,000 |
Impaired Loans with specific loan loss allowance | $ 604,000 | $ 308,000 |
Fair Value Measurements (3) (De
Fair Value Measurements (3) (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Financial assets: | |||
Investment securities available-for-sale | $ 35,224 | $ 31,541 | |
Investment securities held-to-maturity | 14,745 | 15,608 | |
Derivatives (included in Other Assets) | 7,488 | $ 8,752 | |
Financial liabilities: | |||
Derivatives (included in Other Liabilities) | 8,509 | $ 10,047 | |
Carrying Amount [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 109,222 | 61,439 | |
Investment securities available-for-sale | 35,224 | 31,541 | |
Investment securities held-to-maturity | 14,161 | 14,970 | |
Loans receivable, net (including impaired loans) | 990,346 | 1,031,392 | |
Accrued interest receivable | 4,051 | 3,677 | |
Restricted stock | 9,327 | 9,622 | |
Mortgage servicing rights (included in Other Assets) | 87 | 111 | |
Derivatives (included in Other Assets) | 7,488 | 8,752 | |
Financial liabilities: | |||
Savings accounts | 46,531 | 45,072 | |
Checking and NOW accounts | 352,799 | 354,104 | |
Money market accounts | 303,796 | 277,711 | |
Certificates of deposit | 197,339 | 214,019 | |
Borrowings (excluding sub debt) | 135,000 | 134,225 | |
Subordinated debt | 24,816 | 24,776 | |
Derivatives (included in Other Liabilities) | 8,509 | 10,047 | |
Accrued interest payable | 1,078 | 728 | |
Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 109,222 | 61,439 | |
Investment securities available-for-sale | 35,224 | 31,541 | |
Investment securities held-to-maturity | 14,745 | 15,608 | |
Loans receivable, net (including impaired loans) | 998,545 | 1,039,981 | |
Accrued interest receivable | 4,051 | 3,677 | |
Restricted stock | 9,327 | 9,622 | |
Mortgage servicing rights (included in Other Assets) | 87 | 111 | |
Derivatives (included in Other Assets) | 7,488 | 8,752 | |
Financial liabilities: | |||
Savings accounts | 46,531 | 45,072 | |
Checking and NOW accounts | 352,799 | 354,104 | |
Money market accounts | 303,796 | 277,711 | |
Certificates of deposit | 199,959 | 217,212 | |
Borrowings (excluding sub debt) | 135,706 | 135,101 | |
Subordinated debt | 24,845 | 25,030 | |
Derivatives (included in Other Liabilities) | 8,509 | 10,047 | |
Accrued interest payable | 1,078 | 728 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 109,222 | 61,439 | |
Investment securities available-for-sale | 1,020 | 1,023 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | |||
Financial assets: | |||
Investment securities available-for-sale | 33,704 | 30,018 | |
Investment securities held-to-maturity | 14,745 | 15,608 | |
Accrued interest receivable | 4,051 | 3,677 | |
Restricted stock | 9,327 | 9,622 | |
Mortgage servicing rights (included in Other Assets) | 87 | 111 | |
Derivatives (included in Other Assets) | 7,488 | 8,752 | |
Financial liabilities: | |||
Savings accounts | 46,531 | 45,072 | |
Checking and NOW accounts | 352,799 | 354,104 | |
Money market accounts | 303,796 | 277,711 | |
Certificates of deposit | 199,959 | 217,212 | |
Borrowings (excluding sub debt) | 135,706 | 135,101 | |
Subordinated debt | 24,845 | 25,030 | |
Derivatives (included in Other Liabilities) | 8,509 | 10,047 | |
Accrued interest payable | 1,078 | 728 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value [Member] | |||
Financial assets: | |||
Investment securities available-for-sale | 500 | 500 | |
Loans receivable, net (including impaired loans) | $ 998,545 | $ 1,039,981 |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Sep. 30, 2020 | |
Equity [Abstract] | ||
Net unrealized holding losses on available-for-sale securities | $ (15) | $ (118) |
Tax effect | 3 | 25 |
Net of tax amount | (12) | (93) |
Fair value adjustments on derivatives | (989) | (1,260) |
Tax effect | 208 | 265 |
Net of tax amount | (781) | (995) |
Total accumulated other comprehensive loss | $ (793) | $ (1,088) |
Comprehensive Income (Loss) (1)
Comprehensive Income (Loss) (1) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Equity [Abstract] | |||
Unrealized holding (losses) gains on available-for-sale securities | $ 457 | $ 71 | |
Net realized gain on securities available-for-sale | [1] | (355) | |
Amortization of unrealized holding losses on securities transferred from available-for-sale to held-to-maturity | [2] | 1 | 1 |
Adjustment for loss recorded on replacement of derivative | (2) | ||
Fair value adjustments on derivatives | 273 | 91 | |
Other comprehensive income before taxes | 374 | 163 | |
Tax effect | (79) | (34) | |
Other comprehensive income | $ 295 | $ 129 | |
[1] | Amounts are included in net gains on sale of investments on the Consolidated Statements of Operations in total other income. | ||
[2] | Amounts are included in interest and dividends on investment securities on the Consolidated Statements of Operations. |
Equity Based Incentive Compen_3
Equity Based Incentive Compensation Plan (Narrative) (Detail) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted shares | 0 | 0 |
Share-based compensation | $ 52,000 | $ 32,000 |
Granted shares | 0 | 1,764 |
Malvern Bancorp, Inc. 2014 Long Term Incentive Compensation Plan (the 2014 Plan) [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Maximum number of shares available for grants | 400,000 | |
Number of remaining shares available for future grants | 318,651 | |
Description of vesting right | Restricted stock and option awards granted vest annually in 20% increments beginning on the one year anniversary of the grant date | |
Granted shares | 0 | 0 |
Share-based compensation | $ 8,000 | $ 6,000 |
Compensation cost not yet recognized | $ 76,000 | |
Weighted average period | 3 years | |
Malvern Bancorp, Inc. 2014 Long Term Incentive Compensation Plan (the 2014 Plan) [Member] | Restricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation | $ 44,000 | $ 26,000 |
Granted shares | 0 | 1,764 |
Forfeited shares | 1,610 | |
Compensation cost not yet recognized | $ 318,000 | |
Weighted average period | 3 years 4 months 17 days | |
Malvern Bancorp, Inc. 2014 Long Term Incentive Compensation Plan (the 2014 Plan) [Member] | First Year Anniversary [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
First vesting percentage | 20.00% | |
First vesting period | 1 year |
Equity Based Incentive Compen_4
Equity Based Incentive Compensation Plan 1 (Detail) - $ / shares | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Granted | 0 | 0 |
Malvern Bancorp, Inc. 2014 Long Term Incentive Compensation Plan (the 2014 Plan) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of year | 25,830 | |
Granted | 0 | 0 |
Outstanding, end of year | 25,830 | |
Exercisable at end of year | 9,310 | |
Nonvested at end of year | 16,520 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding, beginning of year | $ 21.57 | |
Outstanding, end of year | 21.57 | |
Exercisable at end of year | 22.09 | |
Nonvested at end of year | $ 21.28 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Remaining Contractual Life [Roll Forward] | ||
Outstanding, end of year | 6 years 7 months 5 days | |
Exercisable at end of year | 8 years 1 month 10 days |
Equity Based Incentive Compen_5
Equity Based Incentive Compensation Plan 2 - Restricted Stock Awards (Detail) - $ / shares | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted | 0 | 1,764 |
Restricted Stock [Member] | Malvern Bancorp, Inc. 2014 Long Term Incentive Compensation Plan (the 2014 Plan) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding, beginning of year | 30,653 | |
Granted | 0 | 1,764 |
Vested | (859) | |
Forfeited/cancelled/expired | (1,610) | |
Outstanding, end of year | 29,794 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding, beginning of year | $ 21.98 | |
Vested | 21.01 | |
Outstanding, end of year | $ 22 |
Deposits (Detail)
Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Deposits: | ||
Savings | $ 46,531 | $ 45,072 |
Money market accounts | 303,796 | 277,711 |
Interest-bearing demand | 303,535 | 303,682 |
Non-interest-bearing demand | 49,264 | 50,422 |
Total deposits before certificates of deposit | 703,126 | 676,887 |
Certificates of deposit | 197,339 | 214,019 |
Total Deposits | $ 900,465 | $ 890,906 |
Percentage of savings | 5.17% | 5.06% |
Percentage of money market accounts | 33.73% | 31.17% |
Percentage of interest bearing demand | 33.71% | 34.09% |
Percentage of non-interest bearing demand | 5.47% | 5.66% |
Percentage of total deposits before certificates of deposit | 78.08% | 75.98% |
Percentage of certificates of deposit | 21.92% | 24.02% |
Percentage of total deposits | 100.00% | 100.00% |
Deposits (Narrative) (Detail)
Deposits (Narrative) (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Sep. 30, 2020 |
Deposits: | ||
Certificates of deposit of $250,000 and greater | $ 54.4 | $ 48.4 |
Brokered deposits | $ 6.1 | $ 31.1 |
Deposits 1 (Detail)
Deposits 1 (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deposits: | ||
Savings accounts | $ 18 | $ 11 |
Money market accounts | 791 | 1,098 |
Interest-bearing demand | 547 | 1,181 |
Certificates of deposit | 901 | 1,447 |
Total | $ 2,257 | $ 3,737 |
Deposits (2) (Detail)
Deposits (2) (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Deposits: | |
2021 | $ 138,051 |
2022 | 25,402 |
2023 | 17,107 |
2024 | 9,551 |
2025 | 5,685 |
Thereafter | 1,543 |
Total | $ 197,339 |
Deposits (3) (Detail)
Deposits (3) (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Offsetting [Abstract] | |
Contract maturities of certificate of deposits in amount greater than $100,000, Three months or less | $ 43,247 |
Contract maturities of certificate of deposits in amount greater than $100,000, Over three through six months | 44,048 |
Contract maturities of certificate of deposits in amount greater than $100,000, Over six through twelve months | 14,609 |
Contract maturities of certificate of deposits in amount greater than $100,000, Over twelve months | 31,261 |
Contract maturities of certificate of deposits in amount greater than $100,000, Total | $ 133,165 |
Leases (Narrative) (Detail)
Leases (Narrative) (Detail) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020USD ($)FinancialCentreOfficeLease | Sep. 30, 2020USD ($) | Oct. 01, 2019USD ($) | |
Lessee Lease Description [Line Items] | |||
Operating lease right-of-use assets | $ | $ 2,479 | $ 2,638 | |
Operating lease liabilities | $ | $ 2,512 | $ 2,671 | |
Number of leases | Lease | 3 | ||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||
Lessee, operating lease, renewal term | 5 years | ||
Private Banking Office | |||
Lessee Lease Description [Line Items] | |||
Number of office leases included in option to extend | 2 | ||
Private Banking Office | Short-term Leases [Member] | |||
Lessee Lease Description [Line Items] | |||
Number of offices | 2 | ||
Representative Office | Short-term Leases [Member] | |||
Lessee Lease Description [Line Items] | |||
Number of offices | 2 | ||
Glen Mills, Pennsylvania | |||
Lessee Lease Description [Line Items] | |||
Number of financial centers | FinancialCentre | 1 | ||
Villanova, Pennsylvania | Private Banking Office | |||
Lessee Lease Description [Line Items] | |||
Number of offices | 1 | ||
Morris County, Morristown, New Jersey | Private Banking Office | |||
Lessee Lease Description [Line Items] | |||
Number of offices | 1 | ||
Palm Beach, Florida | Private Banking Office | |||
Lessee Lease Description [Line Items] | |||
Number of offices | 1 | ||
Palm Beach, Florida | Representative Office | |||
Lessee Lease Description [Line Items] | |||
Number of offices | 1 | ||
Allentown, Pennsylvania | Representative Office | |||
Lessee Lease Description [Line Items] | |||
Number of offices | 1 | ||
ASU 2016-02 [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease right-of-use assets | $ | $ 3,300 | ||
Operating lease liabilities | $ | $ 3,300 | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Oct. 1, 2019 | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | false |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 171 | $ 175 |
Short-term lease cost | 22 | 25 |
Total | $ 193 | $ 200 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information of Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Supplemental balance sheet information | |||
Operating lease right-of-use assets | $ 2,479 | $ 2,638 | |
Operating lease liabilities | $ 2,512 | $ 2,671 | |
Weighted average remaining lease term | 5 years 2 months 26 days | ||
Weighted average discount rate | 1.99% | ||
Supplemental cash flow information | |||
Operating cash flows from operating leases | $ 172 | ||
ROU assets obtained in exchange for lease obligations | $ 3,279 | $ 3,279 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Leases [Abstract] | ||
Remainder of 2021 | $ 426 | |
2022 | 492 | |
2023 | 474 | |
2024 | 474 | |
2025 | 477 | |
Thereafter | 269 | |
Total lease payments | 2,612 | |
Less: imputed interest | (100) | |
Total | $ 2,512 | $ 2,671 |