Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 03, 2021 | Mar. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MLVF | ||
Entity Registrant Name | MALVERN BANCORP, INC. | ||
Entity Central Index Key | 0001550603 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity File Number | 000-54835 | ||
Entity Tax Identification Number | 45-5307782 | ||
Entity Address, Address Line One | 42 E. 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 | ||
Entity Common Stock Shares Outstanding | 7,622,316 | ||
Entity Public Float | $ 116.3 | ||
Entity Incorporation, State or Country Code | PA | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Common Stock, $.01 par value per share | ||
Entity Interactive Data Current | Yes |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Assets | ||
Cash and due from depository institutions | $ 99,670,000 | $ 16,386,000 |
Interest bearing deposits in depository institutions | 36,920,000 | 45,053,000 |
Cash and Cash Equivalents | 136,590,000 | 61,439,000 |
Investment securities available for sale, at fair value (amortized cost of $40,756 and $30,135 at September 30, 2021 and 2020, respectively) | 40,813,000 | 30,018,000 |
Equity Securities | 1,500,000 | 1,523,000 |
Investment securities held to maturity, at cost (fair value of $28,913 and $15,608 at September 30, 2021 and 2020, respectively) | 28,507,000 | 14,970,000 |
Restricted stock, at cost | 7,776,000 | 9,622,000 |
Loans held-for-sale, at fair value (amortized cost of $33,199 at September 30, 2021) | 33,199,000 | 0 |
Loans receivable, net of allowance for loan losses of $11,472 and $12,433 at September 30, 2021 and 2020, respectively | 902,981,000 | 1,026,894,000 |
Other real estate owned | 4,961,000 | 5,796,000 |
Accrued interest receivable | 3,512,000 | 3,677,000 |
Operating lease right-of-use-assets | 1,796,000 | 2,638,000 |
Property and equipment, net | 5,777,000 | 6,274,000 |
Deferred income taxes, net | 3,530,000 | 3,680,000 |
Bank-owned life insurance | 26,056,000 | 25,400,000 |
Other assets | 12,145,000 | 16,344,000 |
Total Assets | 1,209,143,000 | 1,208,275,000 |
Deposits: | ||
Deposits-noninterest-bearing | 53,849,000 | 50,422,000 |
Deposits-interest-bearing | 884,310,000 | 840,484,000 |
Total Deposits | 938,159,000 | 890,906,000 |
FHLB advances | 90,000,000 | 130,000,000 |
Secured borrowing | 4,225,000 | |
Subordinated debt | 24,934,000 | 24,776,000 |
Advances from borrowers for taxes and insurance | 1,022,000 | 1,741,000 |
Accrued interest payable | 572,000 | 728,000 |
Operating lease liabilities | 1,830,000 | 2,671,000 |
Other liabilities | 10,458,000 | 12,635,000 |
Total Liabilities | 1,066,975,000 | 1,067,682,000 |
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, 7,816,832 and 7,622,316 shares issued and outstanding, respectively, at September 30, 2021 and 7,804,469 and 7,609,953 shares issued and outstanding, respectively, at September 30, 2020 | 76,000 | 76,000 |
Additional paid-in-capital | 85,524,000 | 85,127,000 |
Retained earnings | 60,296,000 | 60,388,000 |
Unearned Employee Stock Ownership Plan (ESOP) shares | (901,000) | (1,047,000) |
Accumulated other comprehensive income (loss) | 36,000 | (1,088,000) |
Treasury stock, at cost: 194,516 shares at September 30, 2021 and September 30, 2020, respectively | (2,863,000) | (2,863,000) |
Total Shareholders’ Equity | 142,168,000 | 140,593,000 |
Total Liabilities and Shareholders’ Equity | $ 1,209,143,000 | $ 1,208,275,000 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Statement Of Financial Position [Abstract] | ||
Investment securities available for sale, amortized cost | $ 40,756 | $ 30,135 |
Investment securities held to maturity, fair value | 28,913 | 15,608 |
Loans held-for-sale, amortized cost | 33,199 | |
Allowance for loan losses | $ 11,472 | $ 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 | 7,816,832 | 7,804,469 |
Common stock, outstanding | 7,622,316 | 7,609,953 |
Treasury stock, shares | 194,516 | 194,516 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Interest and Dividend Income | ||
Loans, including fees | $ 36,370 | $ 41,441 |
Investment securities, taxable | 1,449 | 1,048 |
Investment securities, tax-exempt | 107 | 124 |
Dividends, restricted stock | 459 | 631 |
Interest-bearing cash accounts | 31 | 1,063 |
Total Interest and Dividend Income | 38,416 | 44,307 |
Interest Expense | ||
Deposits | 6,748 | 12,846 |
Short-term borrowings | 48 | |
Long-term borrowings | 2,029 | 2,898 |
Subordinated debt | 1,531 | 1,531 |
Total Interest Expense | 10,356 | 17,275 |
Net Interest Income | 28,060 | 27,032 |
Provision for Loan Losses | 11,176 | 10,610 |
Net Interest Income after Provision for Loan Losses | 16,884 | 16,422 |
Other Income | ||
Service charges and other fees | 1,323 | 1,316 |
Rental income | 217 | 217 |
Net gains on sale and call of available-for-sale securities | 779 | 330 |
Net gains on sale of loans | 788 | 116 |
Earnings on bank-owned life insurance | 656 | 509 |
Total Other Income | 3,763 | 2,488 |
Other Expense | ||
Salaries and employee benefits | 9,143 | 8,889 |
Occupancy expense | 2,198 | 2,309 |
Federal deposit insurance premium | 313 | 155 |
Advertising | 109 | 119 |
Data processing | 1,267 | 1,105 |
Professional fees | 3,178 | 1,995 |
Other real estate owned expense, net | 866 | 88 |
Pennsylvania shares tax | 678 | 678 |
Other operating expenses | 3,199 | 2,964 |
Total Other Expenses | 20,951 | 18,302 |
Income (Loss) before income tax expense | (304) | 608 |
Income tax benefit | (212) | (36) |
Net Income (Loss) | $ (92) | $ 644 |
Earnings (loss) Per Common Share: | ||
Basic | $ 0.01 | $ 0.08 |
Diluted | $ 0.01 | $ 0.08 |
Weighted Average Common Shares Outstanding | ||
Basic | 7,537,408 | 7,597,528 |
Diluted | 7,538,116 | 7,597,726 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||
Net Income (Loss) | $ (6,190) | $ 1,601 | $ 2,224 | $ 2,273 | $ (3,503) | $ 1,454 | $ 1,908 | $ 785 | $ (92) | $ 644 | |
Other Comprehensive Income (Loss), Net of Tax: | |||||||||||
Unrealized holding gains on available-for-sale securities | 950 | 320 | |||||||||
Tax effect | (199) | (67) | |||||||||
Net of tax amount | 751 | 253 | |||||||||
Reclassification adjustment for net gains arising during the period | [1] | 779 | 330 | ||||||||
Tax effect | 163 | 69 | |||||||||
Net of tax amount | (616) | (261) | |||||||||
Adjustment for loss recorded on replacement of derivative | (9) | 31 | |||||||||
Amortization of unrealized holding losses on securities transferred from available-for-sale to held-to-maturity | [2] | 4 | 3 | ||||||||
Tax effect | (1) | (1) | |||||||||
Net of tax amount | 3 | 2 | |||||||||
Fair value adjustment on derivatives | 1,258 | (681) | |||||||||
Tax effect | (263) | 137 | |||||||||
Net of tax amount | 995 | (544) | |||||||||
Total other comprehensive income (loss) | 1,124 | (519) | |||||||||
Total comprehensive income | $ 1,032 | $ 125 | |||||||||
[1] | Amounts are included in net gains on sale and call of available-for-sale securities 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 - 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 (Loss) | 785 | ||||||
Balance at ending at Dec. 31, 2019 | 143,535 | ||||||
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 (Loss) | 644 | 644 | |||||
Other comprehensive income (loss) | (519) | (519) | |||||
Treasury stock activity | (2,529) | (2) | (2,527) | ||||
Committed to be released ESOP shares | 236 | 91 | 145 | ||||
Stock based compensation | 253 | 253 | |||||
Balance at ending at Sep. 30, 2020 | 140,593 | 76 | 85,127 | 60,388 | (1,047) | (1,088) | (2,863) |
Balance at beginning at Dec. 31, 2019 | 143,535 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | 1,908 | ||||||
Balance at ending at Mar. 31, 2020 | 143,150 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | 1,454 | ||||||
Balance at ending at Jun. 30, 2020 | 143,531 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | (3,503) | ||||||
Balance at ending 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 (Loss) | 2,273 | ||||||
Balance at ending at Dec. 31, 2020 | 143,266 | ||||||
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 (Loss) | (92) | (92) | |||||
Other comprehensive income (loss) | 1,124 | 1,124 | |||||
Committed to be released ESOP shares | 248 | 102 | 146 | ||||
Stock based compensation | 295 | 295 | |||||
Balance at ending at Sep. 30, 2021 | 142,168 | 76 | 85,524 | 60,296 | (901) | 36 | (2,863) |
Balance at beginning at Dec. 31, 2020 | 143,266 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | 2,224 | ||||||
Balance at ending at Mar. 31, 2021 | 145,851 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | 1,601 | ||||||
Balance at ending at Jun. 30, 2021 | 148,192 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (Loss) | (6,190) | ||||||
Balance at ending at Sep. 30, 2021 | $ 142,168 | $ 76 | $ 85,524 | $ 60,296 | $ (901) | $ 36 | $ (2,863) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||
Committed to be released ESOP shares | 14,400 | 14,400 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ (92) | $ 644 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation expense | 630 | 745 |
Provision for Loan Losses | 11,176 | 10,610 |
Deferred income taxes expense (benefit) | 150 | (840) |
ESOP expense | 248 | 236 |
Stock based compensation | 223 | 253 |
Amortization of premiums and discounts on investment securities, net | 184 | 215 |
Amortization of loan origination fees and costs | (304) | 513 |
Amortization of mortgage service rights | 28 | 67 |
Amortization of subordinated debt issuance costs | 158 | 157 |
Net gain on sale and call of investment securities available for sale | (779) | (330) |
Net loss on sale of fixed assets | 4 | |
Net gain on disposal of fixed assets | (45) | |
Net gain on sale of secondary market loans | (788) | (116) |
Proceeds on sale of secondary market loans | 21,910 | 5,231 |
Originations of secondary market loans | (21,122) | (5,115) |
Valuation write down of other real estate owned | 835 | |
Earnings on bank-owned life insurance | (656) | (509) |
Increase in accrued interest receivable | 165 | 576 |
(Decrease) in accrued interest payable | (156) | (250) |
Operating lease liability payments | (893) | (667) |
Amortization of right of use asset | 841 | |
Change in fair value of equity securities | 23 | |
(Decrease) Increase in other liabilities | (360) | 6,761 |
(Decrease) Increase in other assets | 3,335 | (6,414) |
Net Cash Provided by Operating Activities | 14,756 | 11,726 |
Investment securities available-for-sale: | ||
Purchases | (29,325) | (30,146) |
Sales | 17,297 | 8,901 |
Maturities, calls and principal repayments | 2,178 | 8,378 |
Investment securities held-to-maturity: | ||
Purchases | (24,336) | |
Maturities, calls and principal repayments | 10,646 | 7,362 |
Net decrease (increase) in loans | 79,841 | (26,028) |
Purchase of bank-owned life insurance | (5,000) | |
Net decrease in restricted stock | 1,846 | 1,507 |
Proceeds from sales and disposals of property and equipment | 42 | |
Purchases of property and equipment | (175) | (300) |
Net Cash Provided by (Used in) Investing Activities | 58,014 | (35,326) |
Cash Flows from Financing Activities | ||
Net increase (decrease) in deposits | 47,253 | (62,905) |
Proceeds for long-term borrowings | 300,000 | 25,000 |
Repayment of long-term borrowings | (340,000) | (28,000) |
Repayment of other borrowed money | (4,225) | (50) |
(Decrease) in advances from borrowers for taxes and insurance | (719) | (20) |
Net proceeds from issuance of common stock | 72 | |
Acquisition of treasury stock | (2,529) | |
Net Cash Provided by (Used in) Financing Activities | 2,381 | (68,504) |
Net Increase (Decrease) in Cash and Cash Equivalents | 75,151 | (92,104) |
Cash and Cash Equivalent – Beginning | 61,439 | 153,543 |
Cash and Cash Equivalent – Ending | 136,590 | 61,439 |
Supplementary Cash Flows Information | ||
Interest paid | 10,511 | 17,347 |
Non-cash transfer of loans to loans held for sale | 33,199 | |
Income taxes paid | 2,372 | 1,477 |
Impact of ASC 842 adoption: | ||
Right-of-use asset | $ 3,279 | 3,279 |
Operating lease liability | $ 3,279 |
Organizational Structure and Na
Organizational Structure and Nature of Operations | 12 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organizational Structure and Nature of Operations | Note 1 – Organizational Structure and Nature of Operations Malvern Bancorp, Inc. (the “Company” or “Malvern Bancorp”), a Pennsylvania corporation, is a registered 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 and lines of credit and other consumer loans, as well as investing in investment securities. We also maintain a portfolio of investment securities, primarily comprised of corporate bonds, mortgage-backed securities, U.S. agency and bank qualified municipal obligations. Malvern Bank now serves as 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. We derive substantially all of our income from our net interest income (i.e., the difference between the interest we receive on our loans and securities and the interest we pay on deposits and other borrowings). The Bank’s revenues are derived principally from interest on loans and investment securities, loan commitment and customer service fees and our mortgage banking operation. Deposits serve as the primary source of funding for our interest-earning assets, but we also generate non-interest revenue through insufficient funds fees, stop payment fees, safe deposit rental fees, card income, including credit and debit card interchange fees, gift card fees, and other miscellaneous fees. In addition, the Bank generates additional non-interest revenue associated with residential loan origination and sale, back-to-back customer swaps, loan servicing, late fees and merchant services. The Bank’s primary expenses are interest expense on deposits and borrowings, provisions for loan losses and general operating expenses. 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. The Bank’s primary market niche is providing personalized service to its client base. The Bank has the following subsidiary interests: • The Bank owns 100 percent of Malvern Insurance Associates, LLC (“Malvern Associates”), a Pennsylvania limited liability company. Malvern Associates is a licensed insurance broker under Pennsylvania and New Jersey law. • Certain mortgage-backed securities of the Bank are held through Delaware statutory trusts, 5 percent of which are owned by the Bank and 95 percent of which are owned by Coastal Asset Management Co., a Delaware corporation which is wholly owned by the Bank. • The Bank owns 100 percent of Joliet 55 LLC, an Illinois limited liability company which holds an other real estate owned (“OREO”) asset. • The Bank owns a 10 percent non-controlling interest in Bell Rock Capital, LLC (“Bell Rock”), an investment advisor registered with the SEC. • The Bank owns a 3.39 percent interest in Bankers Settlement Services Capital Region, LLC, a Pennsylvania limited liability company which acts as a title insurance agent or agency. The banking industry is highly regulated. The Bank is supervised by the Office of the Comptroller of the Currency (the “OCC”), and the Company is supervised by the Board of Governors of the Federal Reserve Board (the “FRB”). Subsequent Events The Company evaluates events and transactions that occur after the statement of financial condition as of September 30 ,2021 and through the date these consolidated financial statements are being issued for potential recognition and disclosure in the consolidated financial statements. The effect of all subsequent events that provide additional evidence of conditions that existed at the statement of financial condition date are recognized in the audited consolidated financial statements as of September 30, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Presentation and Consolidation The consolidated financial statements at and for the years ended September 30, 2021, and 2020 include the accounts of Malvern Bancorp, Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated. During the quarter-ended September 30, 2021, the Company identified and corrected an immaterial error totaling approximately $350 thousand related to an adjustment to non-accrued interest on charged off loans. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term, including novel coronavirus (“COVID-19”) related changes, are used in connection with the determination of the allowance for loan losses, the valuation of the Company’s deferred tax assets and the fair value of financial instruments. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within Chester County, Pennsylvania and Morris County, New Jersey. Our lending efforts are also focused in Bucks County, Montgomery County and Delaware County, which are also in southeastern Pennsylvania, as well as New Jersey and the New York metropolitan marketplace and Palm Beach Florida. Note 7 discusses the types of investment securities that the Company invests in. Note 8 discusses the types of lending that the Company engages in. The Company does not have any significant concentrations to any one industry or customer. Although the Company has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced by, among other factors, the region’s economy. Significant concentration of commercial real estate-backed loans, amounting to 4.7% and 4.8% of total loans held for investment, as of September 30, 2021 and September 30, 2020, respectively. 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 provided 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 Act 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 troubled debt restructure (“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 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”). 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: Note 2 - Summary of Significant Accounting Policies (Continued) • 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 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. Risks and Uncertainties On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. Since then, the COVID-19 pandemic has continued to evolve and mutate, including through its variants, and has adversely affected, and may continue to adversely affect, local, national and global economic activity. Actions taken to help mitigate the spread of COVID-19 include restrictions on travel, localized quarantines, and government-mandated closures of certain businesses. While certain of these restrictions have been loosened, these same or new restrictions may be implemented again. Although vaccines for COVID-19 have largely been made available in the U.S., the ultimate efficacy of the vaccines will depend on various factors, including, without limitation, the number of people who receive the vaccines as well as the vaccines’ effectiveness against contracting and spreading COVID-19 and any of its existing or new variants. The spread of the outbreak has caused significant disruptions to the U.S. economy and has disrupted the financial industry and real estate markets in the areas in which the Company operates, and it may continue to do so. On March 3, 2020, the Federal Open Market Committee reduced the targeted federal funds interest rate range by 50 basis points to 1.00 percent to 1.25 percent. This range was further reduced to 0 percent to 0.25 percent on March 16, 2020, and as of September 30, 2021 the range was 0 percent to 0.25 percent. As mentioned in further detail in this Report, our net interest income is influenced by both the pricing and mix of our interest-earning assets and our interest-bearing liabilities which, in turn, are impacted by such external factors as the monetary policy of the Federal Open Market Committee. We are unable to predict changes in market interest rates, including the targeted federal funds interest rate, which are affected by many factors beyond our control. On March 27, 2020, the CARES Act was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. Although the CARES Act provided some relief to individuals, families and businesses, the negative impact of COVID-19 remains. These reductions in interest rates and other effects of the COVID-19 pandemic may materially and adversely affect the Company’s financial condition and results of operations in future periods. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial effect will be to the Company. It is possible that estimates made in the financial statements could be materially and adversely impacted as a result of these conditions, including, without limitation, estimates regarding expected loan losses on loans receivable, market values of loans held-for-sale, and other-than-temporary impairment of investment securities. On December 27, 2020, the 2021 Consolidated Appropriations Act was signed into law. The $900 billion relief package includes legislation that extends certain relief provisions of the CARES Act that were set to expire on December 31, 2020. This new legislation extends this relief to the earlier of 60 days after the national emergency declared by the President is terminated or January 1, 2022. Note 2 - Summary of Significant Accounting Policies (Continued) Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from depository institutions and interest-bearing deposits. The Company maintains cash deposits in other depository institutions that occasionally exceed the amount of deposit insurance available. Management periodically assesses the financial condition of these institutions and believes that the risk of any possible credit loss is minimal. Generally, Investment Securities Held-to-maturity (“HTM”) are securities that includes debt securities that the Company has the positive intent and the ability to hold to maturity. These securities are reported at amortized cost and adjusted for unamortized premiums and discounts. Securities held for trading are securities that are bought and held principally for the purpose of selling in the near term; these securities are reported at fair value, with unrealized gains and losses reported in current earnings. At September 30, 2021, and 2020, the Company had no investment securities classified as trading. Equity investment securities, made up of mutual funds for Community Reinvestment Act (CRA) qualified investments, are stated at fair value with any changes in fair value reported in non-interest income. Securities are evaluated on a quarterly basis, and more frequently when market conditions warrant such an evaluation, to determine whether declines in their value are other-than-temporary. To determine whether a loss in value is other-than-temporary, management utilizes criteria such as the reasons underlying the decline, the magnitude and duration of the decline and whether or not management intends to sell or expects that it is more likely than not that it will be required to sell the security prior to an anticipated recovery of the fair value. The term “other-than-temporary” is not intended to indicate that the decline is permanent but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value for a debt security is determined to be other-than-temporary, the other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income. Loans Receivable The Company, through the Bank, grants mortgage, construction, commercial and consumer loans to customers. Substantially all of our loans are to individuals, businesses and real estate developers in Chester County, Pennsylvania and neighboring areas in southern Pennsylvania, New Jersey and the New York metropolitan marketplace, Delaware and Florida markets. The ability of the Company’s debtors to honor their contracts is dependent upon, among other factors, the real estate and general economic conditions in these areas. Note 2 - Summary of Significant Accounting Policies (Continued) Loans receivable that management has the intent and ability to hold until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs are deferred and recognized as an adjustment of the yield (interest income) of the related loans using the interest method. The Company is amortizing these amounts over the contractual lives of the loans. The loans receivable portfolio is segmented into residential loans, construction and development loans, commercial loans and consumer loans. The residential loan segment has one class, one- to four-family first lien residential mortgage loans. The construction and development loan segment consists of the following classes: residential and commercial and land loans. Residential construction loans are made for the acquisition of and/or construction on a lot or lots on which a residential dwelling is to be built. Commercial construction loans are made for the purpose of acquiring, developing and constructing a commercial structure. The commercial loan segment consists of the following classes: commercial real estate loans, multi-family real estate loans, and other commercial loans, which are also generally known as commercial and industrial loans or commercial business loans. The consumer loan segment consists of the following classes: home equity lines of credit, second mortgage loans and other consumer loans, primarily unsecured consumer lines of credit. For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collection of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments. In addition to originating loans, the Company purchases consumer and mortgage loans from brokers in our market area. Such purchases are reviewed for compliance with our underwriting criteria before they are purchased, and are generally purchased without recourse to the seller. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method. Reserves for unfunded lending commitments represent management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated statements of financial condition. Allowance for Loan Losses The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the consolidated statement of financial condition date and is recorded as a reduction to loans. The allowance for loan losses (“ALLL”, or “allowance”) is increased by the provision for loan losses and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment or collateral recovery of all, or part, of the principal balance is highly unlikely. Non-residential consumer loans are generally charged off no later than when they become 120 days past due on a contractual basis or earlier in the event of the borrower’s bankruptcy or if there is an amount deemed uncollectible. Because all identified losses are generally charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably estimated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, the composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. Note 2 - Summary of Significant Accounting Policies (Continued) The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, a specific reserve is recognized when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class that are not considered impaired. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these classes of loans, as adjusted for qualitative factors. These qualitative risk factors include: 1. Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. 2. National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. 3. The nature and volume of the loan portfolio and terms of loans. 4. The experience, ability, and depth of lending management and staff. 5. The volume and severity of past due, classified and nonaccrual loans as well as any other loan modifications. 6. The quality of the Company’s loan review system, and the degree of oversight by the Company’s Board of Directors. 7. The existence and effect of any concentrations of credit and changes in the level of such concentrations. 8. Value of underlying collateral. 9. A single calculation figure which is subsequently applied to the loan portfolio by loan type (commercial, residential and consumer) based upon the percent of each to total loans. It is derived from a review of peer group banks with similar asset size within the same general geographic area of the Bank. The qualitative factors are applied to the historical loss rates for each class of loan. In addition, while not reported as a separate factor, changes in the value of underlying collateral (for regional property values) for collateral dependent loans is considered and addressed within the economic trends factor. A quarterly calculation is made adjusting the reserve allocation for each factor within a risk weighted range as it relates to each particular loan type, collateral type and risk rating within each segment. Data is gathered and evaluated through internal, regulatory, and government sources quarterly for each factor. Another key assumption is the look-back period (“LEP”), which represents the historical data period utilized to calculate loss rates. We used 1 year for our LEP for all loan portfolio segments which encompasses our relevant loss experience. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. In addition, the allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments, for commercial and consumer loans. Credit quality risk ratings include categories of “pass,” “special mention,” “substandard” and “doubtful.” Assets classified as “pass” are those protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. Assets which do not currently expose the insured institution to sufficient risk to warrant classification as substandard or doubtful but possess certain identified weaknesses are required to be designated “special mention.” If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Note 2 - Summary of Significant Accounting Policies (Continued) Residential Lending. Residential mortgage originations are secured primarily by properties located in the Company’s market area and surrounding areas. We currently originate fixed-rate, fully amortizing mortgage loans with maturities of 10 to 30 years. We also offer adjustable-rate mortgage (“ARM”) loans where the interest rate either adjusts on an annual basis or is fixed for the initial one, three or seven years and then adjusts annually. We underwrite one- to four-family residential mortgage loans with loan-to-value ratios of up to 95 percent, provided that the borrower obtains private mortgage insurance on loans that exceed 80 percent of the appraised value or sales price, whichever is less, of the secured property. We also require that title insurance, hazard insurance and, if appropriate, flood insurance be maintained on all properties securing real estate loans. We require that a licensed appraiser from our list of approved appraisers perform and submit to us an appraisal on all properties secured by a first mortgage on one- to four-family first mortgage loans. In underwriting one- to four-family residential mortgage loans, the Company evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan. Most properties securing real estate loans made by the Company are appraised by independent fee appraisers reviewed and approved by the Bank’s third-party appraisal management companies. The Company generally requires borrowers to obtain an attorney’s title opinion or title insurance, and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. Real estate loans originated by the Company generally contain a “due on sale” clause allowing the Company to declare the unpaid principal balance due and payable upon the sale of the security property. The Company has not engaged in sub-prime residential mortgage loan originations. Our single-family residential mortgage loans generally are underwritten on terms and documentation conforming to guidelines issued by The Federal Home Loan Mortgage Company, or Freddie Mac, and The Federal National Mortgage Association, or Fannie Mae. Construction and Development Lending. We originate construction loans for residential and, to a lesser extent, commercial uses within our market area. We generally limit construction loans to builders and developers with whom we have an established relationship, or who are otherwise known to officers of the Bank. Our construction and development loans currently in our loan portfolio typically have variable rates of interest tied to the prime rate which improves the interest rate sensitivity of our loan portfolio. Construction and development loans generally are considered to involve a higher level of risk than one-to four-family residential lending, due to the concentration of principal in a limited number of loans and borrowers and the effect of economic conditions on developers, builders and projects. Additional risk is also associated with construction lending because of the inherent difficulty in estimating both a property’s value at completion and the estimated cost (including interest) to complete a project. The nature of these loans is such that they are more difficult to evaluate and monitor. In addition, speculative construction loans to a builder are not pre-sold and thus pose a greater potential risk than construction loans to individuals on their personal residences. In order to mitigate some of the risks inherent in construction lending, we inspect properties under construction, review construction progress prior to advancing funds, work with builders with whom we have established relationships, require annual updating of tax returns and other financial data of developers and obtain personal guarantees from the principals. Commercial Lending. Commercial and multi-family real estate loans generally present a higher level of risk than loans secured by one- to four-family residences. This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties and the increased difficulty of evaluating and monitoring these types of loans. Furthermore, the repayment of loans secured by commercial and multi-family real estate is typically dependent upon the successful operation of the related real estate project. If the cash flow from the project is reduced (for example, if leases are not obtained or renewed, or a bankruptcy court modifies a lease term, or a major tenant is unable to fulfill its lease obligations), the borrower’s ability to repay the loan may be impaired. Most of the Company’s commercial business loans have been extended to finance local and regional businesses and include short-term loans to finance machinery and equipment purchases, inventory and accounts receivable. The commercial business loans which we originate may be either a revolving line of credit or for a fixed term of generally 10 years or less. Interest rates are adjustable, indexed to a published prime rate of interest, or fixed. Generally, equipment, machinery, real property or other corporate assets secure such loans. Personal guarantees from the business principals are generally obtained as additional collateral. Note 2 - Summary of Significant Accounting Policies (Continued) Consumer Lending. The Company currently originates most of its consumer loans in its primary market area and surrounding areas. The Company originates consumer loans on both a direct and indirect basis. Consumer loans generally have higher interest rates and shorter terms than residential mortgage loans; however, they have additional credit risk due to the type of collateral securing the loan or in some case the absence of collateral. We are continuing to evaluate and monitor the credit conditions of our consumer loan borrowers and the real estate values of the properties securing our second mortgage loans as part of our on-going efforts to assess the overall credit quality of the portfolio in connection with our review of the allowance for loan losses. Consumer loans may entail greater credit risk than do residential mortgage loans, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. Once all factor adjustments are applied, general reserve allocations for each segment are calculated, summarized and reported on the ALLL summary. ALLL final schedules, calculations and the resulting evaluation process are reviewed quarterly. In addition, Federal bank regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, cash flow, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. A specific reserve is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For commercial and industrial loans secured by non-real estate collateral, such as accou |
Non-Interest Income
Non-Interest Income | 12 Months Ended |
Sep. 30, 2021 | |
Noninterest Income [Abstract] | |
Non-Interest Income | Note 3 – 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. Year Ended September 30, (In thousands) 2021 2020 Rental income $ 217 $ 217 Net gains on sale and call of investments 779 330 Net gains on sale of loans 788 116 Earnings on bank-owned life insurance 656 509 Non-interest income within the scope of other GAAP topics 2,440 1,172 ATM fees 13 10 Credit card fee income 22 21 DDA fee income 91 79 DDA service fees 90 76 Debit card fees 283 245 Other loan fee income 574 621 Other fee income 242 257 Other non-interest income 8 7 Non-interest income from contracts with customers $ 1,323 $ 1,316 Total Non-interest Income $ 3,763 $ 2,488 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4 – 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. For the fiscal year ended September 30, 2021, the Company granted a total of 12,363 restricted shares, which are considered CSEs, and options to acquire a total of 7,000 shares of common stock were granted. For the fiscal year ended September 30, 2020, the Company granted a total of 22,211 restricted shares, which are considered CSEs, and options to acquire a total of 7,000 shares of common stock were granted. The following table sets forth the composition of the weighted average shares (denominator) used in the earnings per share computations. Year Ended September 30, (In thousands, except share data) 2021 2020 Net Income (loss) $ (92) $ 644 Weighted average shares outstanding 7,616,151 7,690,675 Average unearned ESOP shares (78,743 ) (93,147 ) Basic weighted average shares outstanding 7,537,408 7,597,528 Plus: effect of dilutive options and restricted stock 708 198 Diluted weighted average common shares outstanding 7,538,116 7,597,726 Earnings (loss) per share: Basic $ (0.01) $ 0.08 Diluted $ (0.01) $ 0.08 |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Sep. 30, 2021 | |
Employee Stock Ownership Plan E S O P Shares In E S O P [Abstract] | |
Employee Stock Ownership Plan | Note 5 – 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 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 five percent, is being repaid in quarterly installments through 2026 principally from the Bank’s contributions to the ESOP. Shares are released to participants proportionately as the ESOP loan is repaid. During each of the years ended September 30, 2021, and 2020, there were 14,400 shares committed to be released. At September 30, 2021, there were 71,565 unallocated shares and 187,653 allocated shares held by the ESOP. The unallocated shares had an aggregate fair value of approximately $1.2 million at September 30, 2021. |
Investment Securities
Investment Securities | 12 Months Ended |
Sep. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | Note 6 - Investment Securities The Company’s investment securities are classified as available-for-sale or held-to-maturity at September 30, 2021, and 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. Equity securities are stated at fair value with any changes in fair value reported in non-interest income. 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 September 30, 2021, and 2020. September 30, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Investment Securities Available-for-Sale: U.S. government agencies $ 5,000 $ — $ (7 ) $ 4,993 State and municipal obligations 2,767 1 (3 ) 2,765 Single issuer trust preferred security 1,000 — (125 ) 875 Corporate debt securities 31,989 243 (52 ) 32,180 Total $ 40,756 $ 244 $ (187 ) $ 40,813 Investment Securities Held-to-Maturity: U.S. government agencies $ 10,000 $ 11 $ — $ 10,011 State and municipal obligations 6,062 104 (49 ) 6,117 Corporate debt securities 3,383 224 — 3,607 Mortgage-backed securities: Collateralized mortgage obligations, fixed-rate 9,062 129 (13 ) 9,178 Total $ 28,507 $ 468 $ (62 ) $ 28,913 Equity Securities Mutual funds 1,500 — — 1,500 Total Mutual funds 1,500 — — 1,500 $ Total investment securities $ 70,763 $ 712 $ (249 ) $ 71,226 Note 6 - Investment Securities (Continued) 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 Total $ 30,135 $ 201 $ (318 ) $ 30,018 Investment Securities Held-to-Maturity: U.S. government agencies $ — $ — $ — $ — State and municipal obligations 1,794 129 — 1,923 Corporate debt securities 3,498 260 — 3,758 Mortgage-backed securities: Collateralized mortgage obligations, fixed-rate 9,678 249 — 9,927 Total $ 14,970 $ 638 $ — $ 15,608 Equity Securities Mutual funds 1,523 — — 1,523 Total 1,523 — — 1,523 Total investment securities $ 46,628 $ 839 $ (318 ) $ 47,149 For fiscal year 2021, The varying amount of sales from the available-for-sale portfolio over the past few years reflect the significant volatility present in the market. Given the historic low interest rates prevalent in the market, it is necessary for the Company to protect itself from interest rate exposure. Securities that once appeared to be sound investments can, after changes in the market, become securities that the Company has the flexibility to sell to avoid losses and mismatches of interest-earning assets and interest-bearing liabilities at a later time. 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 September 30, 2021, and 2020. September 30, 2021 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: U.S. government agencies $ 4,993 $ (7 ) $ — $ — $ 4,993 $ (7 ) State and municipal obligations 1,819 (3 ) — — 1,819 (3 ) Single issuer trust preferred security — — 875 (125 ) 875 (125 ) Corporate debt securities 8,475 (25 ) 2,973 (27 ) 11,448 (52 ) Total $ 15,287 $ (35 ) $ 3,848 $ (152 ) $ 19,135 $ (187 ) Note 6 - Investment Securities (Continued) 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 September 30, 2021, 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 the 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 September 30, 2021, the Company held Investment securities having a carrying value of approximately $2.9 million and $4.6 million at September 30, 2021 and September 30, 2020, respectively, were pledged to secure public deposits. At September 30, 2021, and 2020, no investment securities were pledged to secure hedges. In addition, no investment securities were pledged to secure short-term borrowings of FHLB borrowings at September 30, 2021, and September 30, 2020. Note 6 - Investment Securities (Continued) The following table presents information for investment securities at September 30, 2021, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. September 30, 2021 Amortized Cost Fair Value (In thousands) Investment Securities Available-for-Sale: Due in one year or less $ — $ — Due after one year through five years 4,445 4,434 Due after five years through ten years 27,989 28,069 Due after ten years 8,322 8,310 Total $ 40,756 $ 40,813 Investment Securities Held-to-Maturity: Due in one year or less $ — $ — Due after one year through five years 4,474 4,764 Due after five years through ten years 5,666 5,712 Due after ten years 9,304 9,259 Mortgage-backed securities: Collateralized mortgage obligations, fixed-rate 9,063 9,178 Total $ 28,507 $ 28,913 Equity Securities Mutual funds Due in one year or less $ 500 $ 500 Due after five years through ten years 1,000 1,000 Total 1,500 1,500 Total investment securities $ 70,763 $ 71,226 |
Loans Receivable and Related Al
Loans Receivable and Related Allowance for Loan Losses | 12 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans Receivable and Related Allowance for Loan Losses | Note 7 - Loans Receivable and Related Allowance for Loan Losses Loans receivable in the Company’s portfolio, excluding loans held-for-sale, consisted of the following at the dates indicated: September 30, 2021 2020 (In thousands) Residential mortgage $ 198,710 $ 242,090 Construction and Development: Residential and commercial 61,492 65,703 Land 2,204 3,110 Total Construction and Development 63,696 68,813 Commercial: Commercial real estate 426,915 495,398 Farmland 10,297 7,517 Multi-family 66,332 67,767 Commercial and industrial 115,246 116,584 Other 10,954 10,142 Total Commercial 629,744 697,408 Consumer: Home equity lines of credit 13,491 17,128 Second mortgages 5,884 10,711 Other 2,299 2,851 Total Consumer 21,674 30,690 Total loans 913,824 1,039,001 Deferred loan fees and cost, net 629 326 Allowance for loan losses (11,472 ) (12,433 ) Total loans receivable, net $ 902,981 $ 1,026,894 There were no PPP loans included in Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) The following table summarizes the primary classes of the allowance for loan losses, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of and for the years ended September 30, 2021, and 2020. Year Ended September 30, 2021 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 (In thousands) Allowance for loan losses: Beginning balance $ 1,667 $ 465 $ 23 $ 8,682 $ 47 $ 511 $ 578 $ 51 $ 130 $ 196 $ 29 $ 54 $ 12,433 Charge-offs — — — (11,930 ) — — (379 ) — — — (4 ) — (12,313 ) Recoveries 41 4 — 1 — — 2 — 17 108 2 — 176 Provisions (774) (41) (8) 10,290 9 (61 ) 2,020 3 (71 ) (217 ) (7) 34 11,176 Ending Balance $ 934 $ 428 $ 15 $ 7,043 $ 56 $ 450 $ 2,221 $ 54 $ 76 $ 87 $ 20 $ 88 $ 11,472 Ending balance: individually evaluated for impairment $ — $ — $ — $ 18 $ — $ — $ 1,488 $ — $ — $ 38 $ — $ — $ 1,544 Ending balance: collectively evaluated for impairment $ 934 $ 428 $ 15 $ 7,025 $ 56 $ 450 $ 733 $ 54 $ 76 $ 49 $ 20 $ 88 $ 9,928 Loans receivable: Ending balance $ 198,710 $ 61,492 $ 2,204 $ 426,915 $ 10,297 $ 66,332 $ 115,246 $ 10,954 $ 13,491 $ 5,884 $ 2,299 $ 913,824 Ending balance: individually evaluated for impairment $ — $ — $ — $ 286 $ — $ — $ 2,517 $ — $ — $ 102 $ — $ 2,905 Ending balance: collectively evaluated for impairment $ 198,710 $ 61,492 $ 2,204 $ 426,629 $ 10,297 $ 66,332 $ 112,729 $ 10,954 $ 13,491 $ 5,782 $ 2,299 $ 910,919 Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) 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 (In thousands) Allowance for loan losses: 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 Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) In assessing the adequacy of the ALLL, it is recognized that the process, methodology and underlying assumptions require a significant degree of judgment and uncertainty. 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. At present, components of the commercial loan segments of the portfolio are new originations and the associated volumes continue to see increased growth. At the same time, historical loss levels have decreased as factors in assessing the portfolio. Any unallocated portion of the allowance reflects management’s estimate of probable inherent but undetected losses within the portfolio due to uncertainties in economic conditions, 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 impaired loans with no specific allowance increased from $29.4 million at September 30, 2020 to $39.7 million at September 30, 2021. The increase was primarily due to two performing commercial real estate loans totaling $11.4 million that are deemed impaired with no specific allowance . The following 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 September 30, 2021, and 2020. Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) 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) September 30, 2021: Residential mortgage $ — $ — $ 2,594 $ 2,594 $ 2,766 Commercial: Commercial real estate 286 18 33,543 33,829 33,368 Farmland — — 2,254 2,254 2,254 Commercial and industrial 2,517 1,488 630 3,147 3,584 Consumer: Home equity lines of credit — — 23 23 28 Second mortgages 102 38 696 798 874 Total impaired loans $ 2,905 $ 1,544 $ 39,740 $ 42,645 $ 42,874 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 Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) The following table presents the average recorded investment in impaired loans in the portfolio and related interest income recognized for the years ended September 30, 2021, and 2020. Average Impaired Loans Interest Income Recognized on Impaired Loans (In thousands) Year Ended September 30, 2021: Residential mortgages $ 3,305 $ 82 Commercial: Commercial real estate 32,812 556 Farmland 1,814 70 Commercial and industrial 951 17 Consumer: Home equity lines of credit 48 — Second mortgages 720 6 Total $ 39,650 $ 731 Year Ended September 30, 2020: Residential mortgages $ 3,506 $ 86 Consumer: — — Commercial: Commercial real estate 14,209 235 Consumer: Home equity lines of credit 28 — Second mortgages 858 6 Total $ 18,601 $ 327 No additional funds are committed to be advanced in connection with impaired loans. Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) The following table presents the classes of the loan portfolio summarized by loans considered to be rated as pass and the categories of special mention, substandard and doubtful within the Company’s internal risk rating system as of September 30, 2021, and 2020. September 30, 2021 Pass Special Mention Substandard Doubtful Total (In thousands) Residential mortgage $ 195,658 $ — $ 3,052 $ — $ 198,710 Construction and Development: Residential and commercial 61,492 — — — 61,492 Land 2,204 — — — 2,204 Commercial: Commercial real estate 376,721 48,705 1,489 — 426,915 Farmland 8,043 — 2,254 — 10,297 Multi-family 57,052 9,280 — — 66,332 Commercial and industrial 106,910 — 8,336 — 115,246 Other 10,954 — — — 10,954 Consumer: Home equity lines of credit 13,390 — 101 — 13,491 Second mortgages 4,908 68 908 — 5,884 Other 2,299 — — — 2,299 Total $ 839,631 $ 58,053 $ 16,140 $ — $ 913,824 September 30, 2020 Pass Special Mention Substandard Doubtful Total (In thousands) 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 Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) The following table presents loans on which we are no longer accruing interest by portfolio class at the dates indicated. September 30, 2021 2020 (In thousands) Residential mortgage $ 879 $ 2,036 Commercial: Commercial real estate — 14,414 Commercial and industrial 2,517 — Consumer: Home equity lines of credit 23 26 Second mortgages 278 254 Other — — Total non-accrual loans $ 3,697 $ 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. Total non-accrual loans exclude loans held-for-sale. Total non-accrual loans decreased from $16.7 million at September 2020 to $3.7 million as of September 30, 2021. The decrease in non-accrual loans was primarily due to one commercial real estate loans totaling $6.6 million returning to accrual status as of September 30,2021 and one commercial real estate loan $7.5 million transferred to loans held-for-sale for period ending September 30, 2021. Interest income that would have been recognized on nonaccrual loans had they been current in accordance with their original terms was approximately $1.2 million Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by whether a loan payment is “current,” that is, it is received from a borrower by the scheduled due date, or the length of time a scheduled payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories as of September 30, 2021 and 2020. Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Total Loans Receivable Accruing 90 Days or More Past Due (In thousands) September 30, 2021: Residential mortgage $ 197,062 $ 796 $ 241 $ 611 $ 1,648 $ 198,710 $ — Construction and Development: Residential and commercial 61,492 — — — — 61,492 — Land 2,204 — — — — 2,204 — Commercial: Commercial real estate 426,915 — — — — 426,915 — Farmland 10,297 — — — — 10,297 — Multi-family 66,332 — — — — 66,332 — Commercial and industrial 115,246 — — — — 115,246 — Other 10,954 — — — — 10,954 — Consumer: Home equity lines of credit 13,394 97 — — 97 13,491 — Second mortgages 5,697 4 83 100 187 5,884 — Other 2,296 3 — — 3 2,299 — Total $ 911,889 $ 900 $ 324 $ 711 $ 1,935 $ 913,824 $ — Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Total Loans Receivable Accruing 90 Days or More Past Due (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 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 Company generally only 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 26 loans classified as TDRs with an aggregate outstanding balance of $18.2 million and $21.7 million at September 30, 2021, and 2020, respectively. At September 30, 2021, these loans were also classified as impaired. 22 of the TDR loans continue to perform under the restructured terms through September 30, 2021, and we continued to accrue interest on such loan through such date. The decrease in TDRs at September 30, 2021 compared to September 30, 2020 was primarily due to a write down of $5.7 million on two commercial real estate loans that were transferred to held-for-sale, partially offset by the addition of one commercial loan secured by farmland totaling approximately $2.3 million. Loans that have been classified as TDRs have modified payment terms and in some cases modified interest rates from the original loan agreements and allow the borrowers, who were experiencing financial difficulty, to relieve some of their overall cash flow burden, including but not limited to making interest only payments for a period of time. Some loan modifications classified as TDRs may not ultimately result in the full collection of principal and interest, as modified, and result in potential incremental losses. These potential incremental losses have been factored into our overall estimate of the allowance for loan losses. The level of any defaults will likely be affected by future economic conditions. A default on a troubled debt restructured loan occurs when the borrower is 90 days past due or a foreclosure or repossession of the applicable collateral has occurred. Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) Due to financial difficulties experienced by the borrower, TDRs may arise where 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 OREO, which is included 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 $185,000 and $175,000 of residential real estate properties in the process of foreclosure at September 30, 2021, and 2020, respectively. 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 (In thousands) At September 30, 2021: Residential mortgage 16 $ 3,180 4 $ 640 Commercial: Commercial real estate 5 12,180 — — Farmland 1 2,254 — — Commercial and industrial 1 549 — — Consumer Second mortgages 3 78 — — Total 26 $ 18,241 4 $ 640 At 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 the loan’s compliance with the modified terms. September 30, 2021 2020 Performing Non- Performing Performing Non- Performing (In thousands) Residential mortgage $ 2,540 $ 640 $ 1,818 $ 1,617 Commercial: Commercial real estate 12,180 — 11,439 6,652 Farmland 2,254 — — — Commercial and industrial 549 — — — Consumer Second mortgages 78 — 161 — Total $ 17,601 $ 640 $ 13,418 $ 8,269 Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) The following table shows the new TDRs for the twelve months ended September 30, 2021, and 2020. September 30, 2021 2020 Restructured During Period Number of Loans Pre- Modifications Outstanding Recorded Investments Post- Modifications Outstanding Recorded Investments Number of Loans Pre- Modifications Outstanding Recorded Investments Post- Modifications Outstanding Recorded Investments (In thousands) Troubled Debt Restructurings: Residential mortgage — $ — $ — 1 $ 207 $ 203 Commercial: Commercial real estate — — — 2 10,930 10,926 Farmland 1 2,287 2,287 — — — Commercial and industrial 1 549 549 — — — Total 2 $ 2,803 $ 2,803 3 $ 11,137 $ 11,129 The following table sets forth the aggregate dollar amount of loans to principal officers, directors and their affiliates in the normal course of business of the Company. Year Ended September 30, 2021 2020 (In thousands) Balance at beginning of year $ 13,733 $ 12,478 New loans 2,792 2,073 Repayments (4,604 ) (818 ) Balance at end of year $ 11,921 $ 13,733 At September 30, 2021, and 2020, the Company was servicing loans for the benefit of others in the amounts of $13.1 million and $20.1 million, respectively. A summary of mortgage servicing rights included within other assets in the consolidated statements of financial condition and the activity therein follows for the periods indicated: September 30, 2021 2020 (In thousands) Balance at beginning of year $ 111 $ 178 Amortization (28 ) (67 ) Balance at end of year $ 83 $ 111 For the fiscal years ended September 30, 2021 and 2020, the fair value of servicing rights was determined using a base discount rate between 10.5 percent and 11.5 percent. The fair market value is evaluated by a third-party vendor on a quarterly basis for impairment purposes only. For the fiscal year ended September 30, 2021, we sold $21.9 million of long-term, fixed-rate residential mortgage loans with servicing released. This transaction resulted in a gain of $788,000. For the year ended September 30, 2021, the Company only sold loans with servicing released. For the fiscal year ended September 30, 2020, we sold $5.2 million of long-term, fixed-rate residential mortgage loans with servicing released. This transaction resulted in a gain of $116,000. For the year ended September 30, 2020, the Company only sold loans with servicing released. No valuation allowance on servicing rights has been recorded at September 30, 2021, or 2020. Under Section 4013 of the CARES Act, and separately based upon regulatory guidance promulgated by federal banking regulators (collectively, the “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 troubled debt restructurings (“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. Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) The following tables set forth the composition of these loans by loan segments as of September 30, 2021, and 2020: September 30, 2021 Number of Loans Loan Modification Exposure Gross Loans September 30, 2021 Percentage of Gross Loans Modified (Dollars in thousands) Residential mortgage 2 $ 667 $ 198,710 0.07 % Construction and Development: Residential and commercial - - 61,492 0.00 % Land loans - - 2,204 0.00 % Total Construction and Development - - 63,696 0.00 % Commercial: Commercial real estate 6 60,567 426,915 6.63 % Farmland - - 10,297 0.00 % Multi-family - - 66,332 0.00 % Commercial and industrial - - 115,246 0.00 % Other - - 10,954 0.00 % Total Commercial 6 60,567 629,744 6.63 % Consumer: Home equity lines of credit - - 13,491 0.00 % Second mortgages - - 5,884 0.00 % Other - - 2,299 0.00 % Total Consumer - - 21,674 0.00 % Total loans 8 $ 61,234 $ 913,824 6.70 % September 30, 2020 Number of Loans Loan Modified Exposure Gross Loans September 30, 2020 Percentage of Gross Loans Modified (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 12.65 % 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 % |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 8 - Property and Equipment Property and equipment, net consisted of the following at September 30, 2021 and 2020: September 30, Estimated Useful Life (years) 2021 2020 (In thousands) Land — $ 706 $ 707 Building and improvements 10-39 11,992 11,909 Construction in process — 5 6 Furniture, fixtures and equipment 3-7 5,904 5,852 18,607 18,474 Accumulated depreciation (12,830 ) (12,200 ) $ 5,777 $ 6,274 Depreciation expense was approximately $630,000 and $745,000 for the years ended September 30, 2021 and 2020, respectively. |
Deposits
Deposits | 12 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Deposits | Note 9 - Deposits Deposits classified by interest rates with percentages to total deposits at September 30, 2021 and 2020 consisted of the following: September 30, 2021 2020 Amount Percent of Total Deposits Amount Percent of Total Deposits (In thousands) Balances by types of deposit: Savings $ 50,582 5.39 % $ 45,072 5.06 % Money market accounts 385,480 41.09 277,711 31.17 Interest bearing demand 336,645 35.88 303,682 34.09 Non-interest bearing demand 53,849 5.74 50,422 5.66 826,556 88.10 676,887 75.98 Certificates of deposit 111,603 11.90 214,019 24.02 Total $ 938,159 100.00 % $ 890,906 100.00 % The total amount of certificates of deposit of $250,000 and greater at September 30, 2021 and 2020 was $16.5 million and $48.2 million, respectively. We had brokered deposits totaling $6.1 million and $31.1 million at September 30, 2021 and 2020, respectively. Note 9 - Deposits (Continued) Interest expense on deposits consisted of the following for the years: September 30, 2021 2020 (In thousands) Savings accounts $ 59 $ 51 Money market accounts 1,726 4,010 Interest bearing demand 2,681 3,523 Certificates of deposit 2,282 5,262 Total deposits $ 6,748 $ 12,846 The following is a schedule of certificates of deposit maturities. September 30, 2021 (In thousands) Maturing in the Fiscal Year Ending September 30, 2022 $ 58,172 2023 21,234 2024 17,928 2025 6,319 2026 7,160 Thereafter 790 $ 111,603 Deposits from related parties held by the Company at September 30, 2021 and 2020 amounted to $43.2 million and $35.9 million, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 10 - Borrowings Under terms of its collateral agreement with the FHLB, the Company maintains otherwise unencumbered qualifying assets in an amount at least equal to its borrowings. Under an agreement with the FHLB, the Company has a line of credit available in the amount of $150.0 million, of which there was no balance outstanding at September 30, 2021 or 2020. The interest rate on the line of credit at September 30, 2021 and 2020 was 0.29 percent and 0.39 percent, respectively. The summary of long-term borrowings as of September 30, 2021 and 2020 are as follows: September 30, 2021 2020 Weighted Average Weighted Average Amount Rate Amount Rate (In thousands) Due by September 30: 2021 $ — — $ 110,000 0.76 2022 90,000 0.76 20,000 2.29 Total FHLB Advances $ 90,000 0.76 % $ 130,000 0.99 % Note 10 - Borrowings (Continued) At September 30, 2021, the Company had $90.0 million in outstanding long-term fixed rate FHLB advances and $376.6 million in potential FHLB advances available to us, which is based on the amount of FHLB stock held or levels of other assets, including U.S. government securities, and certain mortgage loans which are available for collateral. During both fiscal year 2021 and 2020, the Company did not purchase any securities sold under agreements to repurchase as a short-term funding source. The Company had no secured borrowing agreements with a third party at September 30, 2021 compared to two loans totaling $4.2 million at September 30, 2020. Subsequent to September 30, 2020, the one loan participation agreement was extinguished and was no longer a secured borrowing. |
Derivatives
Derivatives | 12 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 11 - Derivatives 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 September 30, 2021, such derivatives were used to hedge the variable cash flows associated with FHLB advances. Amounts reported in accumulated other comprehensive (loss) income 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 $182,000 to be reclassified to earnings in 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, which the Company implemented during the first quarter of fiscal year 2019. 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. Note 1 1 - Derivatives (Continued) 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 September 30, 2021 and 2020: September 30, 2021 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 $ 40,000 $ 14 Other assets $ 30,000 $ 47 Other liabilities Derivatives not designated as a hedging instrument: Interest rate swap agreement $ 44,748 $ 4,671 Other assets $ 44,748 $ 4,673 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 Offsetting of Derivative Assets (In thousands) as of September 30, 2021 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 $ 4,685 $ — $ 4,685 $ — $ — $ 4,685 Offsetting of Derivative Liabilities (In thousands) as of September 30, 2021 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 $ 4,720 $ — $ 4,720 $ 221 $ 8,257 $ (3,758 ) Note 11 - Derivatives (Continued) 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) income and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the years ended September 30, 2021 and 2020. For the Year Ended September 30, 2021 Amount of Gain Recognized in OCI on Derivative Amount of Loss Reclassified from OCI to Interest Expense (In thousands) Interest rate swap agreements $ 255 $ (995 ) Total derivatives $ 255 $ (995 ) For the Year Ended September 30, 2020 Amount of Loss Recognized in OCI on Derivative Amount of Gain Reclassified from OCI to Interest Expense (In thousands) Interest rate swap agreements $ (1,088 ) $ (437 ) Total derivatives $ (1,088 ) $ (437 ) Note 11 - Derivatives (Continued) The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the years ended September 30, 2021 and 2020. For the Year Ended September 30, 2021 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 $ 2 Total $ 2 For the Year Ended September 30, 2020 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 $ (6 ) Total $ (6 ) The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default 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 September 30, 2021 and 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 September 30, 2021 and 2020. At September 30, 2021 and 2020, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $8.3 million and $12.9 million, respectively, against its obligations under these agreements. If the Company had breached any of these provisions at September 30, 2021, it could have been required to settle its obligations under the agreements at the termination value and would have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparty. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 12 - Fair Value Measurements The Company follows FASB ASC Topic 820 “Fair Value Measurement,” to record fair value adjustments to certain assets and to determine fair value disclosures for the Company’s financial instruments. Investment and mortgage-backed securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, real estate owned and certain other assets. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets. 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—Valuation 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. Note 1 2 - Fair Value Measurements (Continued) 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 as of and for the years ended September 30, 2021 and 2020. The tables below present the balances of assets measured at fair value on a recurring basis at September 30, 2021 and 2020: September 30, 2021 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investment securities available-for-sale: Debt securities: U.S. government agencies $ 4,993 $ — $ 4,993 $ — State and municipal obligations 2,765 — 2,765 — Single issuer trust preferred security 875 — 875 — Corporate debt securities 32,180 — 32,180 — Total investment securities available-for-sale $ 40,813 $ — $ 40,813 $ — Equity securities: Mutual fund $ 1,500 $ 1,000 $ — $ 500 Total equity investment securities $ 1,500 $ 1,000 $ — $ 500 Derivative instruments $ 4,685 $ — $ 4,685 $ — Liabilities: Derivative instruments $ 4,720 $ — $ 4,720 $ — Note 12 - Fair Value Measurements (Continued) 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 — Total investment securities available-for-sale $ 30,018 $ — $ 30,018 $ — Equity securities: Mutual fund $ 1,523 $ 1,023 $ — $ 500 Total equity investment securities $ 1,523 $ 1,023 $ — $ 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 years ended September 30, 2021 and September 30, 2020: 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, September 30, 2021 $ 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, September 30, 2020 $ 500 Note 12 - Fair Value Measurements (Continued) All 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 in fiscal year 2021 and fiscal year 2020 that were still held at the end of the period, the following table provides the level of valuation assumptions used to determine each adjustment and the carrying value of the related individual assets or portfolios at September 30, 2021 and 2020: September 30, 2021 Total Level 1 Level 2 Level 3 (In thousands) Other real estate owned $ 4,961 $ — $ — $ 4,961 Impaired loans (1) 33,876 18,900 — 14,976 Total $ 38,837 $ 18,900 $ — $ 19,937 September 30, 2021 Fair Value at September 30, 2021 Valuation Technique Unobservable Input Range/(Weighted Average) (In thousands) Other real estate owned $ 4,961 Appraisal of Collateral(2) Collateral discount(3) 6.4%/(6.4%) Impaired loans (1) 33,876 Appraisal of Collateral(2) Collateral discount(3) (4.0%) – (12%)/(8%) Total $ 38,837 (1) Consisted of eight loans with an aggregate balance of $35.4 million and with $1.5 million 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) (In thousands) Other real estate owned $ 5,796 Appraisal of Collateral(2) Collateral discount(3) 6.5%/(6.5%) Impaired loans (1) 7,920 Appraisal of Collateral(2) Collateral discount(3) (2.0%) - 20%/(1.4%) Total $ 13,716 (1) Consisted of four 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 Note 12 - Fair Value Measurements (Continued) At September 30, 2021 and 2020, the Company did not have any additions to our mortgage servicing assets. At September 30, 2021 and September 30, 2020 the Company sold loans with servicing released. T he 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 a ppropriate valuation methods. However, considerable judgment is necessarily required to interpret market data to develo p 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 September 30, 2021 and 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 September 30, 2021 and 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, mortgage-backed securities available for sale, and mutual funds (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. At September 30, 2021 four of our commercial real estate loans totaling $32.5 million classified as held-for sale were deemed impaired. Three of the commercial real estate loans totaling $18.9 million was fair valued at level 1 input is based off of a subsequent sale and the other commercial real estate loan totaling $13.6 million was fair valued at level 3 is based off of an appraisal. 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 Federal Reserve Bank, FHLB and ACBB, 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. Note 1 2 - Fair Value Measurements (Continued) 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 allowance for loan losses. If the estimated fair value of the asset declines in subsequent periods, 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 time deposits of similar maturities. Fair value approximates book value for savings accounts, checking and negotiable order of withdrawal accounts (“NOW accounts”), and money market accounts. 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 Company 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. Note 1 2 - Fair Value Measurements (Continued) The carrying amount and estimated fair value of the Company’s financial instruments as of September 30, 2021 and 2020 were as follows: Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) September 30, 2021: Financial assets: Cash and cash equivalents $ 136,590 $ 136,590 $ 136,590 $ — $ — Investment securities available-for-sale 40,813 40,813 — 40,813 — Investment securities held-to-maturity 28,507 28,913 — 28,913 — Equity securities 1,500 1,500 1,000 — 500 Loans receivable, net (including impaired ) 902,981 900,357 — — 900,357 Loans Held For Sale 33,199 33,199 19,583 — 13,616 Accrued interest receivable 3,512 3,512 — 3,512 — Restricted stock 7,776 7,776 — 7,776 — Mortgage servicing rights (included in Other Assets) 83 83 — 83 — Derivatives (included in Other Assets) 4,685 4,685 — 4,685 — Financial liabilities: Savings accounts 50,582 50,582 — 50,582 — Checking and NOW accounts 390,494 390,494 — 390,494 — Money market accounts 385,480 385,480 — 385,480 — Certificates of deposit 111,603 113,323 — 113,323 — Borrowings (excluding sub debt) 90,000 90,215 — 90,215 — Subordinated debt 24,934 25,027 — 25,027 — Derivatives (included in Other Liabilities) 4,720 4,720 — 4,720 — Accrued interest payable 572 572 — 572 — September 30, 2020: Financial assets: Cash and cash equivalents $ 61,439 $ 61,439 $ 61,439 $ — $ — Investment securities available-for-sale 30,018 30,018 — 30,018 — Investment securities held-to-maturity 14,970 15,608 — 15,608 — Equity securities 1,523 1,523 1,023 — 500 Loans receivable, net (including impaired loans) 1,026,984 1,035,941 — — 1,035,941 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 — |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13 - Income Taxes In accordance with ASC Topic 740, the Company evaluates on a quarterly basis all evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance for DTAs is needed. In conducting this evaluation, management explores all possible sources of taxable income available under existing tax laws to realize the net DTA beginning with the most objectively verifiable evidence first, including available carry back claims and viable tax planning strategies. If needed, management will look to future taxable income as a potential source. Management reviews the Company’s current financial position and its results of operations for the current and preceding years. That historical information is supplemented by all currently available information about future years. The Company understands that projections about future performance are subjective. Deferred income taxes at September 30, 2021 and 2020 were as follows: September 30, 2021 2020 (In thousands) DTAs: Allowance for loan losses $ 2,807 $ 3,053 Non-accrual interest 276 29 Supplement Employer Retirement Plan 173 193 Federal and State net operating loss 155 6 Unrealized loss on investments available-for-sale — 296 Depreciation 53 36 Lease liability 448 656 Other 113 89 Total DTAs 4,025 4,358 Valuation allowance for DTAs — — Total DTAs, Net of Valuation Allowance $ 4,025 $ 4,358 DTLs: Unrealized gain on investments available-for-sale (3 ) — Mortgage servicing rights (20 ) (27 ) Right of use asset (440 ) (648 ) Other (32 ) (3 ) Total DTLs (495 ) (678 ) DTAs, Net $ 3,530 $ 3,680 Of these DTAs, the carryforward periods for certain tax attributes are as follows: • The Company has recorded federal net operating loss carryforwards of approximately $563,000 and $0 million as of September 30, 2021 and 2020, respectively. These net operating losses do not expire • The Company has recorded state net operating loss carryforwards of approximately $36,500 and $12,000 as of September 30, 2021 and 2020 , respectively. These net operating losses will begin to expire in 2033. Note 13 – Income Taxes (Continued) Income tax benefit for the fiscal years ended September 30, 2021 and 2020 was comprised of the following: September 30, 2021 2020 (In thousands) Federal: Current $ (62) $ 394 Deferred (112 ) (495 ) (174 ) (101 ) State: Current - 271 Deferred (38 ) (206 ) (38 ) 65 Total income tax benefit $ (212 ) $ (36 ) A reconciliation from the expected federal income tax expense (benefit) computed at the statutory federal income tax rate to the actual income tax benefit included in the consolidated statements of income for the fiscal years ended September 30, 2021 and 2020: September 30, 2021 2020 (In thousands) Tax at statutory rate $ (64) (21.0) % $ 128 21.0 % Adjustments resulting from: State tax, net of federal benefit (30) (9.8) 51 8.5 Tax-exempt interest (26) (8.6) (59 ) (9.7 ) Earnings on bank-owned life insurance (138 ) (45.3) (107 ) (17.6 ) Other 46 15.1 (49 ) (8.1 ) Total $ (212 ) (69.6) % $ (36 ) (5.9 )% It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more like than not to be sustained upon examination by tax authorities. As of September 30, 2021 and 2020, there were no material uncertain tax positions related to federal and state income tax matters. The Company is currently open to audit under the statute of limitation by the Internal Revenue Service and state taxing authorities for the years ended September 30, 2018 to September 30, 2021. The Small Business Job Protection Act of 1996 provides for the repeal of the tax bad debt deduction computed under the percentage-of-taxable-income method. Upon repeal, the Company was required to recapture into income, over a six-year period, the portion of its tax bad debt reserves that exceeds its base year reserves (i.e., tax reserves for tax years beginning before 1988). The base year tax reserves, which may be subject to recapture if the Company ceases to qualify as a bank for federal income tax purposes, are restricted with respect to certain distributions and have been treated as a permanent tax difference. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 14 – 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. As of September 30, 2021, the Company leases one financial center located in Glen Mills, Pennsylvania; one private banking office located in Villanova, Pennsylvania; one private banking office in Morris County located in Morristown, New Jersey; one private banking office located in Palm Beach, Florida; one representative office located in Wellington, Florida; one representative office located in Allentown, Pennsylvania and one administrative office in Quakertown, Pennsylvania. The Company has elected not to recognize ROU assets and lease liabilities for one private banking office leases and two representative office leases whose terms are twelve months or less and are considered short-term leases. The financial center lease, two private banking office leases, and one administrative office lease include options to extend for terms of five years. These options have not been recognized as part of our ROU assets and lease liabilities as the Company is not reasonably certain to exercise these options. The Company has also entered into three leases for office equipment for which ROU assets and lease liabilities have been recognized. All the aforementioned leases have been accounted for as operating leases. The components of lease expense for the fiscal years ended September 30, 2021 and 2020 were as follows: September 30, 2021 2020 In thousands Operating lease cost $ 661 $ 698 Finance lease cost — — Short-term lease cost 95 104 Total $ 756 $ 802 Supplemental information at and for September 30, 2021 and the fiscal year ended September 30, 2020 related to leases was as follows: September 30, 2021 September 30, 2020 (Dollars in thousands) (Dollars in thousands) Supplemental balance sheet information Operating lease right-of-use assets $ 1,796 $ 2,638 Operating lease liabilities $ 1,830 $ 2,671 Weighted average remaining lease term 4.50 years 5.40 years Weighted average discount rate 1.99 % 1.99 % Twelve Months Ended September 30, 2021 Twelve Months Ended September 30, 2020 (In thousands) (In thousands) Supplemental cash flow information Operating cash flows from operating leases $ 893 $ 667 ROU assets obtained in exchange for lease obligations $ 3,279 $ 3,279 Note 14 – Leases (Continued) Maturities of lease liabilities were as follows: Operating Leases (In thousands) Years ended September 30: 2022 $ 449 2023 431 2024 431 2025 432 2026 153 Thereafter 51 Total lease payments $ 1,947 Less: imputed interest (117) Total $ 1,830 The Company receives rents from the lease of office and residential space owned by the Company. Rental income is included in Other Income. Future minimum rental commitments under these leases are (in thousands): Years ending September 30: 2022 $ 95 2023 — 2024 — 2025 — 2026 — $ 95 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15 - Commitments and Contingencies The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, unused lines of credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit, and interest rate risk in excess of the amount recognized in the statements of financial condition. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Letters of credit are conditional commitments issued by the Company guaranteeing payments of drafts in accordance with the terms of the letter of credit agreements. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Collateral may be required to support letters of credit based upon management’s evaluation of the creditworthiness of each customer. The credit risk involved in issuing letters of credit is substantially the same as that involved in extending loan facilities to customers. Most letters of credit expire within one year. At both September 30, 2021 and 2020, the uncollateralized portion of the letters of credit extended by the Company was approximately $9.0 million and $9.1 million, respectively. The current amount of the liability for guarantees under letters of credit was not material as of September 30, 2021 or 2020. Note 15 – Commitments and Contingencies (Continued) At September 30, 2021 and 2020, the following financial instruments were outstanding whose contract amounts represent credit risk: September 30, 2021 2020 (In thousands) Commitments to extend credit: Future loan commitments $ 32,889 $ 7,687 Undisbursed construction loans 12,672 24,551 Undisbursed home equity lines of credit 25,722 24,751 Undisbursed commercial lines of credit 19,901 22,918 Undisbursed commercial unsecured lines of credit 66,941 58,445 Overdraft protection lines 1,549 1,362 Standby letters of credit 9,026 9,074 Total Commitments $ 168,700 $ 148,788 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies but generally includes personal or commercial real estate. Unfunded commitments under commercial lines of credit are collateralized except for the overdraft protection lines of credit and commercial unsecured lines of credit. The amount of collateral obtained is based on management’s credit evaluation, and generally includes personal or commercial real estate. Various legal claims arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company’s consolidated financial statements. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Sep. 30, 2021 | |
Regulatory Matters Disclosure [Abstract] | |
Regulatory Matters | Note 16 - Regulatory Matters Shareholders’ Equity On March 14, 2019, the Company’s Board of Directors approved a stock repurchase plan, under which the Company is authorized to repurchase up to 194,516 shares, or approximately 2.5 percent of the Company’s current outstanding common stock. On February 28, 2020, the Company’s Board of Directors extended the timeframe for its current stock repurchase program from March 31, 2020, to December 31, 2020. During the fiscal year ended September 30, 2020, the Company purchased 177,653 shares of its common stock in the open market under the repurchase plan at an average cost of $14.23 per share. This plan expired during fiscal year end September 30, 2021 and was not further extended, and no shares were purchased after December, 2020. 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 Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and 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 Note 1 6 - Regulatory Matters (Continued) and 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 September 30, 2021, the Company’s and the Bank’s current capital levels exceed the required capital amounts to be considered “well capitalized” and we believe 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 September 30, 2021 and 2020: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (1) (In thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio As of September 30, 2021: Tier 1 Leverage (Core) Capital (to average assets) $ 142,132 11.84 % $ 48,020 4.00 % N/A N/A Common Equity Tier 1 Capital (to risk- weighted assets) 142,132 14.53 % 44,024 4.50 % N/A NA Tier 1 Capital (to risk-weighted assets) 142,132 14.53 % 58,699 6.00 % N/A NA Total Risk-Based Capital (to risk- weighted assets) 178,620 18.26 % 78,265 8.00 % N/A N/A As of September 30, 2020: Tier 1 Leverage (Core) Capital (to average assets) $ 141,681 11.63 % $ 48,743 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 (1) The Company is not subject to the regulatory capital ratios imposed by Basel III on bank holding companies because the Company was deemed to be a small bank holding company as of September 30, 2021 and 2020. Note 16 - Regulatory Matters (Continued) The following table summarizes the Bank’s compliance with applicable regulatory capital requirements as of September 30, 2021 and 2020: To Be Well Capitalized For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions (In thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio As of September 30, 2021: Tier 1 Leverage (Core) Capital (to average assets) $ 157,518 13.14 % $ 47,946 4.00 % $ 59,933 5.00 % Common Equity Tier 1 Capital (to risk- weighted assets) 157,518 16.13 % 43,934 4.50 % 63,460 6.50 % Tier 1 Capital (to risk-weighted assets) 157,518 16.13 % 58,579 6.00 % 78,105 8.00 % Total Risk-Based Capital (to risk-weighted assets) 169,072 17.32 % 78,105 8.00 % 97,632 10.00 % As of September 30, 2020: Tier 1 Leverage (Core) Capital (to average 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 % The following table presents a reconciliation of the Bank’s equity determined using GAAP and its regulatory capital amounts as of September 30, 2021 and 2020: September 30, 2021 2020 (In thousands) Bank GAAP equity $ 157,554 $ 154,487 Net unrealized loss on securities available for sale, net of income taxes (45) 93 Net unrealized loss on derivatives, net of income taxes 9 995 Tangible Capital, Core Capital and Tier 1 Capital 157,518 155,575 Allowance for loan losses 11,554 12,515 Total Risk-Based Capital $ 169,072 $ 168,090 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Comprehensive Income | Note 17 – Comprehensive Income The components of accumulated other comprehensive income (loss) included in shareholders’ equity are as follows: September 30, 2021 2020 (In thousands) Net unrealized holding gains (losses) on available-for- sale securities $ 57 $ (118 ) Tax effect (12 ) 25 Net of tax amount 45 (93 ) Fair value adjustment on derivatives (11 ) (1,260 ) Tax effect 2 265 Net of tax amount (9 ) (995 ) Total accumulated other comprehensive income (loss) $ 36 $ (1,088 ) Note 17 – Comprehensive Income (Continued) Other comprehensive income (loss) and related tax effects are presented in the following table: Year Ended September 30, 2021 2020 (In thousands) Net unrealized holding gains on available-for-sale securities $ 950 $ 320 Reclassification adjustment for net gains arising during the period (779 ) (330 ) Adjustment for loss recorded on replacement of derivative (9) 31 Amortization of unrealized holding losses on securities available-for-sale transferred to held-to-maturity 4 3 Fair value adjustment on derivatives 1,258 (681 ) Other comprehensive income (loss) before taxes 1,424 (657 ) Tax effect (300) 138 Total other comprehensive income (loss) $ 1,124 $ (519 ) |
Equity Based Incentive Compensa
Equity Based Incentive Compensation Plan | 12 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Based Incentive Compensation Plan | Note 18 – 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 September 30, 2021, there were 299,288 remaining shares available for future grants. Restricted stock and option awards granted during fiscal year 2021 vest in 20 percent increments beginning on the one- year 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. During fiscal year 2021 and 2020, stock options covering a total 7,000 shares of common stock, respectively, were granted. During fiscal year 2021 and 2020, no stock options were forfeited. Total compensation expense related to options granted under the 2014 Plan was approximately $35,000 for fiscal year 2021 and $29,000 for fiscal year 2020. During fiscal year 2021, 12,363 shares of restricted stock were awarded and none of those shares were forfeited. During fiscal year 2020, 23,821 shares of restricted stock were awarded and 1,610 of those shares were forfeited. The compensation expense related to restricted and unrestricted stock awards was approximately $260,000 for fiscal year 2021 and $224,000 for fiscal year 2020. 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. Note 1 8 - Equity Based Incentive Compensation Plan (Continued) Stock Options The assumptions used in determining the fair value of stock option grants for the year ended September 30, 2021 are as follows: Weighted average fair value of awards $ 6.06 Risk-free rate 1.25 % Dividend yield — % Volatility 29.72 % Expected life 6.5 years The assumptions used in determining the fair value of stock option grants for the year ended September 30, 2020 are as follows: Weighted average fair value of awards $ 4.72 Risk-free rate 1.22 % Dividend yield — % Volatility 19.86 % Expected life 6.5 years The following is a summary of currently outstanding options at September 30, 2021: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding, beginning of year 25,830 $ 21.57 $ — Granted 7,000 $ 18.69 $ — Exercised — $ — $ — Forfeited/cancelled/expired — $ — $ — Outstanding, end of year 32,830 $ 20.96 7.392 $ 1,940 Exercisable at end of year 13,310 $ 21.53 6.193 $ 1,940 Nonvested at end of year 19,520 $ 20.56 The following is a summary of currently outstanding options at September 30, 2020: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding, beginning of year 18,830 $ 22.05 $ 21,350 Granted 7,000 $ 20.28 $ — Exercised — $ — $ — Forfeited/cancelled/expired — $ — $ — Outstanding, end of year 25,830 $ 21.57 7.819 $ — Exercisable at end of year 8,140 $ 21.50 6.794 $ — Nonvested at end of year 17,690 $ 21.60 As of September 30, 2021, there was $92,000 of total unrecognized compensation cost related to non-vested options under the Plan. The cost is expected to be recognized over a weighted average period of 3.31 years. Note 18 - Equity Based Incentive Compensation Plan (Continued) Restricted Stock Awards The table below summarizes the activity for the Company’s restricted stock outstanding at September 30, 2021: Shares Weighted Average Fair Value Outstanding, beginning of year 30,653 $ 21.98 Granted 12,363 18.69 Vested (11,530 ) 20.82 Forfeited/cancelled/expired — — Outstanding, end of year 31,486 $ 21.10 The table below summarizes the activity for the Company’s restricted stock outstanding at September 30, 2020: Shares Weighted Average Fair Value Outstanding, beginning of year 18,493 $ 21.78 Granted 23,821 19.62 Vested (10,051 ) 16.62 Forfeited/cancelled/expired (1,610 ) 21.43 Outstanding, end of year 30,653 $ 21.98 As of September 30, 2021, there was $367,000 of total unrecognized compensation cost related to non-vested shares of restricted stock granted under the Plan. The cost is expected to be recognized over a weighted average period of 3.27 years. |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | Note 19 – Subordinated Debt On February 7, 2017, the Company issued $25.0 million in aggregate principal amount of its 6.125 percent fixed-to-floating rate subordinated notes due 2027 (the “Notes”). The Notes have a stated maturity of February 15, 2027, are redeemable, in whole or in part, on or after February 15, 2022, and at any time upon the occurrences of certain events. The Notes bear interest at a fixed rate of 6.125 percent per year, from and including February 7, 2017 to, but excluding February 15, 2022. From and including February 15, 2022 to the maturity date or earlier redemption date, the interest rate will reset quarterly at a variable rate equal to the then current 3-month LIBOR plus 414.5 basis points. The Notes were structured to qualify as Tier 2 capital for regulatory purposes. The Company’s net subordinated debt totaled $24.9 million ($737,000 represents original debt issuance costs) at September 30, 2021. The Company may not redeem the Notes prior to February 15, 2022, except that the Company may redeem the Notes at any time, at its option, in whole but not in part, subject to obtaining any required regulatory approvals, if (i) a change or prospective change in law occurs that could prevent the Company from deducting interest payable on the Notes for U.S. federal income tax purposes, (ii) a subsequent event occurs that precludes the Notes from being recognized as Tier 2 capital for regulatory capital purposes, or (iii) the Company is required to register as an investment company under the Investment Company Act of 1940, as amended, in each case, at a redemption price equal to 100 percent of the principal amount of the Notes plus any accrued and unpaid interest through, but excluding, the redemption date. |
Condensed Financial Information
Condensed Financial Information - Parent Company Only | 12 Months Ended |
Sep. 30, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information - Parent Company Only | Note 20 – Condensed Financial Information - Parent Company Only Condensed Statements of Financial Condition September 30, 2021 2020 (In thousands) Assets Cash and Cash Equivalents $ 6,878 $ 8,411 Investment in subsidiaries 157,554 154,487 Loans receivable, net 934 1,104 Other assets 1,916 1,536 Total Assets $ 167,282 $ 165,538 Liabilities Subordinated debt $ 24,934 $ 24,776 Accrued interest payable 196 196 Accounts payable (16 ) (27 ) Total Liabilities 25,114 24,945 Shareholders’ Equity 142,168 140,593 Total Liabilities and Shareholders’ Equity $ 167,282 $ 165,538 Note 20 – Condensed Financial Information - Parent Company Only (Continued) Condensed Statements of Operations Year Ended September 30, 2021 2020 (In thousands) Income Interest income $ 51 $ 59 Total Interest Income 51 59 Expense Long-term borrowings 1,536 1,531 Total Interest Expense 1,536 1,531 Other operating expenses 560 375 Total Other Expenses 560 375 Total Expense 2,096 1,906 Loss before Equity in Undistributed Net Income of Subsidiaries and Income Tax Benefit (2,045 ) (1,847 ) Equity in Undistributed Net Income of Subsidiaries 1,473 2,071 Income tax benefit (480 ) (420 ) Net (Loss) Income $ (92 ) $ 644 Condensed Statements of Comprehensive Income Year Ended September 30, (In thousands) 2021 2020 Net (Loss) Income $ (92 ) $ 644 Other Comprehensive (Loss) Income, Net of Tax: Unrealized holding gains on available-for- sale securities 950 320 Tax effect (199 ) (67 ) Net of tax amount 751 253 Reclassification adjustment for net gains arising during the period ( 1) (779 ) (330 ) Tax effect 163 69 Net of tax amount (616 ) (261 ) Adjustment for loss recorded on replacement of derivative (9 ) 31 Accretion of unrealized holding losses on securities transferred from available-for-sale to held-to-maturity ( 2) 4 3 Tax effect (1 ) (1 ) Net of tax amount 3 2 Fair value adjustment on derivatives 1,258 (681 ) Tax effect (263 ) 137 Net of tax amount 995 (544 ) Total other comprehensive income (loss) 1,124 (519 ) Total comprehensive income $ 1,032 $ 125 (1) (2) Amounts are included in interest and dividends on investment securities on the Consolidated Statements of Operations. Note 20 – Condensed Financial Information - Parent Company Only (Continued) Condensed Statements of Cash Flows Year Ended September 30, 2021 2020 (In thousands) Cash Flows from Operating Activities Net (loss) income $ (92 ) $ 644 Undistributed net income of subsidiaries (1,473 ) (2,071 ) ESOP expense 248 236 Stock based compensation 295 253 Amortization of subordinated debt issuance costs 158 157 Increase in other assets ( 850 ) (838 ) Increase (decrease) in other liabilities 11 (41 ) Net Cash Used in Operating Activities (1,703 ) (1,660 ) Cash Flows from Investing Activities Net decrease in loans 170 162 Net Cash Provided by Investing Activities 170 162 Cash Flows from Financing Activities Acquisition of treasury stock — (2,529 ) Proceeds from other borrowings 5,000 — Repayments of other borrowings (5,000 ) — Net Cash (Used in) Provided by Financing Activities — (2,529 ) Net Decrease in Cash and Cash Equivalents (1,533 ) (4,027 ) Cash and Cash Equivalents - Beginning 8,411 12,438 Cash and Cash Equivalents - Ending $ 6,878 $ 8,411 |
Quarterly Financial Information
Quarterly Financial Information of Malvern Bancorp Inc. (Unaudited) | 12 Months Ended |
Sep. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information of Malvern Bancorp Inc. (Unaudited) | Note 21 – Quarterly Financial Information (Unaudited) The following tables are a summary of certain quarterly financial data for the fiscal years ended September 30, 2021 and 2020. 2021 4 th. 3 rd. 2 nd. 1 st. (In thousands, except share data) Total Interest and Dividend Income $ 8,862 $ 9,419 $ 9,539 $ 10,596 Total Interest Expense 2,037 2,290 2,737 3,292 Net Interest Income 6,825 7,129 6,802 7,304 Provision for Loan Losses 10,626 — — 550 Total Other Income 579 793 1,167 1,224 Total Other Expenses 5,084 5,832 5,063 4,972 Income (Loss) before income tax expense (8,306 ) 2,090 2,906 3,006 Income tax (benefit) expense (2,116 ) 489 682 733 Net (Loss) Income $ (6,190 ) $ 1,601 $ 2,224 $ 2,273 (Loss) Earnings Per Common Share: Basic $ (0.82 ) $ 0.21 $ 0.30 $ 0.30 Diluted $ (0.82 ) $ 0.21 $ 0.30 $ 0.30 Weighted Average Common Shares Outstanding Basic 7,548,958 7,545,371 7,529,408 7,525,808 Diluted 7,550,766 7,546,200 7,530,151 7,526,376 Note 21 – Quarterly Financial Information (Unaudited) (Continued) 2021 4 th. 3 rd. 2 nd. 1 st. (In thousands, except share data) Cash and due from depository institutions $ 99,670 $ 90,441 $ 99,358 $ 83,764 Interest-bearing deposits in depository institutions 36,920 14,513 9,556 25,458 Investment securities, available for sale, at fair value 40,813 32,998 27,397 33,704 Equity Securities 1,500 1,504 1,502 1,520 Investment securities held to maturity 28,507 31,795 25,834 14,161 Restricted stock, at cost 7,776 7,896 8,891 9,327 Loans receivable, net of allowance for loan losses 902,981 940,735 974,596 990,346 Loans held-for-sale 33,199 — — — OREO 4,961 4,961 5,796 5,796 Accrued interest receivable 3,512 3,370 3,598 4,051 Operating lease right-of-use-assets 1,796 2,168 2,322 2,479 Property and equipment, net 5,777 5,902 6,040 6,154 Deferred income taxes, net 3,530 3,389 3,535 3,601 Bank-owned life insurance 26,056 25,889 25,725 25,564 Other assets 12,145 20,183 12,269 14,999 Total assets $ 1,209,143 $ 1,185,744 $ 1,206,419 $ 1,220,924 Deposits $ 938,159 $ 907,704 $ 912,213 $ 900,465 FHLB advances 90,000 90,000 110,000 130,000 Secured borrowings — — — — Other borrowings — — — 5,000 Subordinated debt 24,934 24,895 24,855 24,816 Operating lease liabilities 1,830 2,204 2,357 2,512 Other liabilities 12,052 12,749 11,143 14,865 Shareholders' equity 142,168 148,192 145,851 143,266 Total liabilities and shareholders' equity $ 1,209,143 $ 1,185,744 $ 1,206,419 $ 1,220,924 Note 21 – Quarterly Financial Information (Unaudited) (Continued) 2020 4 th. 3 rd. 2 nd. 1 st. (In thousands, except share data) Total Interest and Dividend Income $ 10,340 $ 10,498 $ 11,629 $ 11,840 Total Interest Expense 3,620 3,867 4,836 4,952 Net Interest Income 6,720 6,631 6,793 6,888 Provision for Loan Losses 7,400 435 625 2,150 Total Other Income 692 389 964 443 Total Other Expenses 4,558 4,684 4,638 4,422 Income before income tax expense (4,546 ) 1,901 2,494 759 Income tax expense (1,043 ) 447 586 (26 ) Net Income $ (3,503 ) $ 1,454 $ 1,908 $ 785 Earnings Per Common Share: Basic $ (0.46 ) $ 0.19 $ 0.25 $ 0.10 Diluted $ (0.46 ) $ 0.19 $ 0.25 $ 0.10 Weighted Average Common Shares Outstanding Basic 7,522,199 7,538,375 7,663,771 7,665,842 Diluted 7,522,360 7,538,375 7,663,771 7,665,842 Note 21 – Quarterly Financial Information (Unaudited) (Continued) 2020 4 th. 3 rd. 2 nd. 1 st. (In thousands, except share data) Cash and due from depository institutions $ 16,386 $ 30,653 $ 1,829 $ 1,337 Interest-bearing deposits in depository institutions 45,053 28,291 124,239 158,465 Investment securities, available for sale, at fair value 30,018 31,722 20,325 22,225 Equity Securities 1,523 1,523 1,514 1,498 Investment securities held to maturity 14,970 15,921 18,046 20,578 Restricted stock, at cost 9,622 9,766 10,913 11,115 Loans receivable, net of allowance for loan losses 1,026,894 1,032,318 1,007,132 996,879 OREO 5,796 5,796 5,796 5,796 Accrued interest receivable 3,677 5,680 4,121 4,061 Operating lease right-of-use-assets 2,638 2,799 2,959 3,119 Property and equipment, net 6,274 6,355 6,476 6,594 Deferred income taxes, net 3,680 3,103 2,974 2,806 Bank-owned life insurance 25,400 20,270 20,144 20,018 Other assets 16,344 13,873 13,869 8,341 Total assets $ 1,208,275 $ 1,208,070 $ 1,240,337 $ 1,262,832 Deposits $ 890,906 $ 884,444 $ 915,900 $ 943,819 FHLB advances 130,000 130,000 133,000 133,000 Secured borrowing 4,225 4,225 4,225 4,250 Subordinated debt 24,776 24,737 24,697 24,658 Operating lease liabilities 2,671 2,824 2,976 3,128 Other liabilities 15,104 18,309 16,389 10,442 Shareholders' equity 140,593 143,531 143,150 143,535 Total liabilities and shareholders' equity $ 1,208,275 $ 1,208,070 $ 1,240,337 $ 1,262,832 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 22 – Subsequent Event Subsequent to September 30, 2021, the Company disposed of three commercial real estate loans with an aggregate book balance of $29.3 million. Included in these loans was one non-accrual loan totaling approximately $12.2 million and two performing TDR loans totaling $17.1 million. These loans were transferred to held-for-sale at a fair value of $18.9 million on September 30, 2021, and then subsequently sold at a net loss of approximately $10.8 million as compared to their recorded investment prior to reclassification of loans held-for-sale. There was one additional non-accrual commercial real estate loan transferred to held-for-sale at September 30, 2021, with an aggregate book balance of $13.6 million. The Company is continuing to evaluate a sale of this loan. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The consolidated financial statements at and for the years ended September 30, 2021, and 2020 include the accounts of Malvern Bancorp, Inc. and its subsidiaries. All significant intercompany transactions and balances have been eliminated. During the quarter-ended September 30, 2021, the Company identified and corrected an immaterial error totaling approximately $350 thousand related to an adjustment to non-accrued interest on charged off loans. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term, including novel coronavirus (“COVID-19”) related changes, are used in connection with the determination of the allowance for loan losses, the valuation of the Company’s deferred tax assets and the fair value of financial instruments. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within Chester County, Pennsylvania and Morris County, New Jersey. Our lending efforts are also focused in Bucks County, Montgomery County and Delaware County, which are also in southeastern Pennsylvania, as well as New Jersey and the New York metropolitan marketplace and Palm Beach Florida. Note 7 discusses the types of investment securities that the Company invests in. Note 8 discusses the types of lending that the Company engages in. The Company does not have any significant concentrations to any one industry or customer. Although the Company has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced by, among other factors, the region’s economy. Significant concentration of commercial real estate-backed loans, amounting to 4.7% and 4.8% of total loans held for investment, as of September 30, 2021 and September 30, 2020, respectively. |
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 provided 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 Act 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 troubled debt restructure (“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 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”). 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: Note 2 - Summary of Significant Accounting Policies (Continued) • 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 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. |
Risks and Uncertainties | Risks and Uncertainties On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. Since then, the COVID-19 pandemic has continued to evolve and mutate, including through its variants, and has adversely affected, and may continue to adversely affect, local, national and global economic activity. Actions taken to help mitigate the spread of COVID-19 include restrictions on travel, localized quarantines, and government-mandated closures of certain businesses. While certain of these restrictions have been loosened, these same or new restrictions may be implemented again. Although vaccines for COVID-19 have largely been made available in the U.S., the ultimate efficacy of the vaccines will depend on various factors, including, without limitation, the number of people who receive the vaccines as well as the vaccines’ effectiveness against contracting and spreading COVID-19 and any of its existing or new variants. The spread of the outbreak has caused significant disruptions to the U.S. economy and has disrupted the financial industry and real estate markets in the areas in which the Company operates, and it may continue to do so. On March 3, 2020, the Federal Open Market Committee reduced the targeted federal funds interest rate range by 50 basis points to 1.00 percent to 1.25 percent. This range was further reduced to 0 percent to 0.25 percent on March 16, 2020, and as of September 30, 2021 the range was 0 percent to 0.25 percent. As mentioned in further detail in this Report, our net interest income is influenced by both the pricing and mix of our interest-earning assets and our interest-bearing liabilities which, in turn, are impacted by such external factors as the monetary policy of the Federal Open Market Committee. We are unable to predict changes in market interest rates, including the targeted federal funds interest rate, which are affected by many factors beyond our control. On March 27, 2020, the CARES Act was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. Although the CARES Act provided some relief to individuals, families and businesses, the negative impact of COVID-19 remains. These reductions in interest rates and other effects of the COVID-19 pandemic may materially and adversely affect the Company’s financial condition and results of operations in future periods. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial effect will be to the Company. It is possible that estimates made in the financial statements could be materially and adversely impacted as a result of these conditions, including, without limitation, estimates regarding expected loan losses on loans receivable, market values of loans held-for-sale, and other-than-temporary impairment of investment securities. On December 27, 2020, the 2021 Consolidated Appropriations Act was signed into law. The $900 billion relief package includes legislation that extends certain relief provisions of the CARES Act that were set to expire on December 31, 2020. This new legislation extends this relief to the earlier of 60 days after the national emergency declared by the President is terminated or January 1, 2022. Note 2 - Summary of Significant Accounting Policies (Continued) |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from depository institutions and interest-bearing deposits. The Company maintains cash deposits in other depository institutions that occasionally exceed the amount of deposit insurance available. Management periodically assesses the financial condition of these institutions and believes that the risk of any possible credit loss is minimal. Generally, |
Investment Securities | Investment Securities Held-to-maturity (“HTM”) are securities that includes debt securities that the Company has the positive intent and the ability to hold to maturity. These securities are reported at amortized cost and adjusted for unamortized premiums and discounts. Securities held for trading are securities that are bought and held principally for the purpose of selling in the near term; these securities are reported at fair value, with unrealized gains and losses reported in current earnings. At September 30, 2021, and 2020, the Company had no investment securities classified as trading. Equity investment securities, made up of mutual funds for Community Reinvestment Act (CRA) qualified investments, are stated at fair value with any changes in fair value reported in non-interest income. Securities are evaluated on a quarterly basis, and more frequently when market conditions warrant such an evaluation, to determine whether declines in their value are other-than-temporary. To determine whether a loss in value is other-than-temporary, management utilizes criteria such as the reasons underlying the decline, the magnitude and duration of the decline and whether or not management intends to sell or expects that it is more likely than not that it will be required to sell the security prior to an anticipated recovery of the fair value. The term “other-than-temporary” is not intended to indicate that the decline is permanent but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value for a debt security is determined to be other-than-temporary, the other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income. |
Loans Receivable | Loans Receivable The Company, through the Bank, grants mortgage, construction, commercial and consumer loans to customers. Substantially all of our loans are to individuals, businesses and real estate developers in Chester County, Pennsylvania and neighboring areas in southern Pennsylvania, New Jersey and the New York metropolitan marketplace, Delaware and Florida markets. The ability of the Company’s debtors to honor their contracts is dependent upon, among other factors, the real estate and general economic conditions in these areas. Note 2 - Summary of Significant Accounting Policies (Continued) Loans receivable that management has the intent and ability to hold until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees and costs. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs are deferred and recognized as an adjustment of the yield (interest income) of the related loans using the interest method. The Company is amortizing these amounts over the contractual lives of the loans. The loans receivable portfolio is segmented into residential loans, construction and development loans, commercial loans and consumer loans. The residential loan segment has one class, one- to four-family first lien residential mortgage loans. The construction and development loan segment consists of the following classes: residential and commercial and land loans. Residential construction loans are made for the acquisition of and/or construction on a lot or lots on which a residential dwelling is to be built. Commercial construction loans are made for the purpose of acquiring, developing and constructing a commercial structure. The commercial loan segment consists of the following classes: commercial real estate loans, multi-family real estate loans, and other commercial loans, which are also generally known as commercial and industrial loans or commercial business loans. The consumer loan segment consists of the following classes: home equity lines of credit, second mortgage loans and other consumer loans, primarily unsecured consumer lines of credit. For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collection of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments. In addition to originating loans, the Company purchases consumer and mortgage loans from brokers in our market area. Such purchases are reviewed for compliance with our underwriting criteria before they are purchased, and are generally purchased without recourse to the seller. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method. Reserves for unfunded lending commitments represent management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated statements of financial condition. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the consolidated statement of financial condition date and is recorded as a reduction to loans. The allowance for loan losses (“ALLL”, or “allowance”) is increased by the provision for loan losses and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment or collateral recovery of all, or part, of the principal balance is highly unlikely. Non-residential consumer loans are generally charged off no later than when they become 120 days past due on a contractual basis or earlier in the event of the borrower’s bankruptcy or if there is an amount deemed uncollectible. Because all identified losses are generally charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably estimated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, the composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. Note 2 - Summary of Significant Accounting Policies (Continued) The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. For loans that are classified as impaired, a specific reserve is recognized when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers pools of loans by loan class that are not considered impaired. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these classes of loans, as adjusted for qualitative factors. These qualitative risk factors include: 1. Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. 2. National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. 3. The nature and volume of the loan portfolio and terms of loans. 4. The experience, ability, and depth of lending management and staff. 5. The volume and severity of past due, classified and nonaccrual loans as well as any other loan modifications. 6. The quality of the Company’s loan review system, and the degree of oversight by the Company’s Board of Directors. 7. The existence and effect of any concentrations of credit and changes in the level of such concentrations. 8. Value of underlying collateral. 9. A single calculation figure which is subsequently applied to the loan portfolio by loan type (commercial, residential and consumer) based upon the percent of each to total loans. It is derived from a review of peer group banks with similar asset size within the same general geographic area of the Bank. The qualitative factors are applied to the historical loss rates for each class of loan. In addition, while not reported as a separate factor, changes in the value of underlying collateral (for regional property values) for collateral dependent loans is considered and addressed within the economic trends factor. A quarterly calculation is made adjusting the reserve allocation for each factor within a risk weighted range as it relates to each particular loan type, collateral type and risk rating within each segment. Data is gathered and evaluated through internal, regulatory, and government sources quarterly for each factor. Another key assumption is the look-back period (“LEP”), which represents the historical data period utilized to calculate loss rates. We used 1 year for our LEP for all loan portfolio segments which encompasses our relevant loss experience. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. In addition, the allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments, for commercial and consumer loans. Credit quality risk ratings include categories of “pass,” “special mention,” “substandard” and “doubtful.” Assets classified as “pass” are those protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. Assets which do not currently expose the insured institution to sufficient risk to warrant classification as substandard or doubtful but possess certain identified weaknesses are required to be designated “special mention.” If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Note 2 - Summary of Significant Accounting Policies (Continued) Residential Lending. Residential mortgage originations are secured primarily by properties located in the Company’s market area and surrounding areas. We currently originate fixed-rate, fully amortizing mortgage loans with maturities of 10 to 30 years. We also offer adjustable-rate mortgage (“ARM”) loans where the interest rate either adjusts on an annual basis or is fixed for the initial one, three or seven years and then adjusts annually. We underwrite one- to four-family residential mortgage loans with loan-to-value ratios of up to 95 percent, provided that the borrower obtains private mortgage insurance on loans that exceed 80 percent of the appraised value or sales price, whichever is less, of the secured property. We also require that title insurance, hazard insurance and, if appropriate, flood insurance be maintained on all properties securing real estate loans. We require that a licensed appraiser from our list of approved appraisers perform and submit to us an appraisal on all properties secured by a first mortgage on one- to four-family first mortgage loans. In underwriting one- to four-family residential mortgage loans, the Company evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan. Most properties securing real estate loans made by the Company are appraised by independent fee appraisers reviewed and approved by the Bank’s third-party appraisal management companies. The Company generally requires borrowers to obtain an attorney’s title opinion or title insurance, and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. Real estate loans originated by the Company generally contain a “due on sale” clause allowing the Company to declare the unpaid principal balance due and payable upon the sale of the security property. The Company has not engaged in sub-prime residential mortgage loan originations. Our single-family residential mortgage loans generally are underwritten on terms and documentation conforming to guidelines issued by The Federal Home Loan Mortgage Company, or Freddie Mac, and The Federal National Mortgage Association, or Fannie Mae. Construction and Development Lending. We originate construction loans for residential and, to a lesser extent, commercial uses within our market area. We generally limit construction loans to builders and developers with whom we have an established relationship, or who are otherwise known to officers of the Bank. Our construction and development loans currently in our loan portfolio typically have variable rates of interest tied to the prime rate which improves the interest rate sensitivity of our loan portfolio. Construction and development loans generally are considered to involve a higher level of risk than one-to four-family residential lending, due to the concentration of principal in a limited number of loans and borrowers and the effect of economic conditions on developers, builders and projects. Additional risk is also associated with construction lending because of the inherent difficulty in estimating both a property’s value at completion and the estimated cost (including interest) to complete a project. The nature of these loans is such that they are more difficult to evaluate and monitor. In addition, speculative construction loans to a builder are not pre-sold and thus pose a greater potential risk than construction loans to individuals on their personal residences. In order to mitigate some of the risks inherent in construction lending, we inspect properties under construction, review construction progress prior to advancing funds, work with builders with whom we have established relationships, require annual updating of tax returns and other financial data of developers and obtain personal guarantees from the principals. Commercial Lending. Commercial and multi-family real estate loans generally present a higher level of risk than loans secured by one- to four-family residences. This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties and the increased difficulty of evaluating and monitoring these types of loans. Furthermore, the repayment of loans secured by commercial and multi-family real estate is typically dependent upon the successful operation of the related real estate project. If the cash flow from the project is reduced (for example, if leases are not obtained or renewed, or a bankruptcy court modifies a lease term, or a major tenant is unable to fulfill its lease obligations), the borrower’s ability to repay the loan may be impaired. Most of the Company’s commercial business loans have been extended to finance local and regional businesses and include short-term loans to finance machinery and equipment purchases, inventory and accounts receivable. The commercial business loans which we originate may be either a revolving line of credit or for a fixed term of generally 10 years or less. Interest rates are adjustable, indexed to a published prime rate of interest, or fixed. Generally, equipment, machinery, real property or other corporate assets secure such loans. Personal guarantees from the business principals are generally obtained as additional collateral. Note 2 - Summary of Significant Accounting Policies (Continued) Consumer Lending. The Company currently originates most of its consumer loans in its primary market area and surrounding areas. The Company originates consumer loans on both a direct and indirect basis. Consumer loans generally have higher interest rates and shorter terms than residential mortgage loans; however, they have additional credit risk due to the type of collateral securing the loan or in some case the absence of collateral. We are continuing to evaluate and monitor the credit conditions of our consumer loan borrowers and the real estate values of the properties securing our second mortgage loans as part of our on-going efforts to assess the overall credit quality of the portfolio in connection with our review of the allowance for loan losses. Consumer loans may entail greater credit risk than do residential mortgage loans, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. Once all factor adjustments are applied, general reserve allocations for each segment are calculated, summarized and reported on the ALLL summary. ALLL final schedules, calculations and the resulting evaluation process are reviewed quarterly. In addition, Federal bank regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, cash flow, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. A specific reserve is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For commercial and industrial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. Large groups of smaller balance homogeneous residential mortgage and consumer loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual loans of this nature for impairment disclosures, unless such loans become impaired or are troubled and the subject of a restructuring agreement. Note 2 - Summary of Significant Accounting Policies (Continued) |
Troubled Debt Restructurings | Troubled Debt Restructurings Loans whose terms are modified are classified as TDRs if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring may be modified by means of extending the maturity date of the loan, reducing the interest rate on the loan to a rate which is below market, a combination of rate adjustments and maturity extensions, or by other means including covenant modifications, forbearances or other concessions. However, the Company generally only restructures loans by modifying the payment structure to interest only or by reducing the actual interest rate, TDRs are considered impaired loans. We do not accrue interest on loans that were non-accrual prior to the TDR until they have performed in accordance with their restructured terms for a period of at least six months. We continue to accrue interest on troubled debt restructurings which were performing in accordance with their terms prior to the restructure and continue to perform in accordance with their restructured terms. Management evaluates the ALLL with respect to TDRs under the same policy and guidelines as all other performing loans are evaluated with respect to the ALLL. |
Loan Servicing | Loan Servicing Servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing right based on relative fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into other expense in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. The Company also sells loans in the secondary market with servicing released. |
Other Real Estate Owned | Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of the previously established carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in other expenses from OREO, |
Restricted Stock | Restricted Stock Restricted stock represents required investments in the common stock of a correspondent bank and is carried at cost. As of September 30, 2021, and 2020, restricted stock consists of the common stock of the Federal Reserve Bank, FHLB and Atlantic Community Bankers Bank (“ACBB”). Management’s evaluation and determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of an investment’s cost is influenced by criteria such as (1) the significance of the decline in net assets of the Federal Reserve Bank, FHLB and ACBB as compared to the capital stock amount for the Federal Reserve Bank, FHLB and ACBB and the length of time this situation has persisted, (2) commitments by the Federal Reserve Bank, FHLB and ACBB to make payments required by law or Note 2 - Summary of Significant Accounting Policies (Continued) regulation and the level of such payments in relation to the operating performance of the Federal Reserve Bank, FHLB and ACBB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the Federal Reserve Bank, FHLB and ACBB. During the years ended September 30, 2021, and 2020, there were net repurchases of restricted stock of $1.8 million and $1.5 million, respectively. Also, as of September 30, 2021, and 2020, the number of outstanding restricted shares was 103,793 and 122,177, respectively. There were approximately $459,000 and $631,000 |
Property and Equipment | Property and Equipment Property and equipment is carried at cost. Depreciation is computed using the straight-line and accelerated methods over estimated useful lives ranging from 3 to 39 years beginning when assets are placed in service. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is reflected in income for the period. The cost of maintenance and repairs is charged to income as incurred. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The Company accounts for certain participation interests in commercial loans receivable (loan participation agreements) sold as a sale of financial assets pursuant to ASC 860, Transfers and Servicing. Loan participation agreements that meet the sale criteria under ASC 860 are derecognized from the Consolidated Statement of Financial Condition at the time of transfer. If the transfer of loans subject to loan participation does not meet the sale criteria or participating interest criteria under ASC 860, the transfer is accounted for as a secured borrowing and the loan is not de-recognized and a participating liability is recorded in the Consolidated Statements of Financial Condition. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company invests in bank owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Bank on a chosen group of employees. The Bank is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Earnings from the increase in cash surrender value of the policies are included in other income on the statements of operations. |
Employee Benefit Plans | Employee Benefit Plans The Bank’s 401(k) plan allows eligible participants to set aside a certain percentage of their salaries before taxes. The Company may elect to match employee contributions up to a specified percentage of their respective salaries in an amount determined annually by the Board of Directors. The Company’s matching contribution related to the plan resulted in expenses of $77,000 and $131,000 The Company also maintains an unfunded Supplemental Executive and a Director Retirement Plan (together, the “Plans”). The accrued amount for the Plans included in other liabilities was $709,000 and $784,000 at September 30, 2021, and 2020, respectively. Distributions from the Plan for each of the fiscal years 2021 and 2020 were approximately $79,000 and $94,000, respectively. The expense associated with the Plans was $4,000 for each of the years ended September 30, 2021, and 2020. |
Derivatives and Hedging | Note 2 - Summary of Significant Accounting Policies (Continued) Derivatives and Hedging The Company records cash flow hedges at the inception of the derivative contract based on the Company’s intentions and belief as to likely effectiveness as a hedge. The Company documents the strategy for entering into the transactions and the method of assessing ongoing effectiveness. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge that is effective, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. To determine fair value, the Company uses third party pricing models that incorporate assumptions about market conditions and risks that are current at the reporting date. The Company does not use derivative instruments for speculative purposes. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. The Company recognized $0 and $371,000 of net swap fees through the Bank’s commercial loan hedging program during fiscal years 2021 and 2020, respectively. |
Advertising Cost | Advertising Costs The Company follows the policy of charging the costs of advertising to expense as incurred. Advertising expense was $109,000 and $119,000 |
Income Taxes | Income Taxes Deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. DTAs and DTLs are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on DTAs and DTLs of a change in tax rates is recognized in income in the period that includes the enactment date. These calculations are based on many complex factors including estimates of the timing of reversals of temporary differences, the interpretation of federal income tax laws and a determination of the differences between the tax and the financial reporting basis of assets and liabilities. Actual results could differ significantly from the estimates and interpretations used in determining the current and deferred income tax assets and liabilities. A valuation allowance is required to be recognized if it is “more likely than not” that a portion of the DTAs will not be realized. The Company’s policy is to evaluate the DTA on a quarterly basis and record a valuation allowance for our DTA if we do not have sufficient positive evidence indicating that it is more likely than not that some or all of the DTA will be realized. The Company’s policy is to account for interest and penalties as components of income tax expense. Note 2 - Summary of Significant Accounting Policies (Continued) |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the statement of financial condition when they are funded. |
Segment Information | Segment Information The Company has one reportable segment, “Community Banking.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and other borrowings and manage interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale debt securities, are reported as a separate component of the shareholders’ equity section of the statement of financial condition, such items, along with net income, are components of comprehensive income. For securities transferred from available for sale to held to maturity, the Company records the amortization and/or accretion of unrealized holding losses on such investment securities, in accumulated other comprehensive (loss) income. The Company also records changes in the fair value of interest rate derivatives used in its cash flow hedging activities, net of deferred income tax, in accumulated other comprehensive (loss) income. |
Reclassifications | Reclassifications Certain reclassifications have been made to the previous year’s consolidated financial statements to conform to the current year’s presentation. These reclassifications had no effect on the Company’s results of operations. |
Revenue Recognition | Revenue Recognition ASC 606, Revenue from Contracts with Customers The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, investment securities, derivatives as well as revenue related to BOLI, sales of investment securities, rental income, and gain on sale of loans. Revenue-generating activities that are within the scope of ASC 606, which are presented in our consolidated statements of operations as components of other income include certain fees such as credit card fee income, DDA service and fee income, and debit card fees. |
Loans Held-For-Sale | Loans Held-For-Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value on the consolidated statements of financial condition. Gains and losses on loan sales (sales proceeds minus carrying value) are recorded in noninterest income, and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan. Servicing is retained at the Bank for loans sold in the secondary market and are placed as a mortgage servicing asset on the consolidated statement of financial condition. Note 2 - Summary of Significant Accounting Policies (Continued) During the quarter ended September 30, 2021, management transferred four commercial real estate loans with aggregate fair value of $32.5 million from loans receivable held for investment to loans held for sale. In connection with the loans transfer, management recorded a charge off totaling $10.8 million that was included in the allowance for loan losses as of September 30, 2021. Three of the four loans held for sale as of September 30, 2021 were subsequently sold in October 2021 with no additional valuation adjustments. |
Treasury Stock | Treasury stock The Company records common stock purchased for treasury at cost. At the date of subsequent reissue, the treasury stock account is reduced by the cost of such stock on the first-in, first-out basis. |
Leases | Leases The Company accounts for its leases in accordance with FASB ASC 842 - Leases As a lessee, the Company enters into operating leases for certain bank branches, office space, and office equipment. The right-of-use assets and lease liabilities are initially recognized based on the net present value of the remaining lease payments, which include renewal options where management is reasonably certain they will be exercised. The net present value is determined using the incremental borrowing rate based on the FHLB liquidity and funding rates at commencement date. The right-of-use asset is measured at the amount of the lease liability adjusted for any prepaid rent, lease incentives and initial direct costs incurred. The right-of-use asset and lease liability is amortized over the individual lease terms. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Recent Accounting Pronouncements Yet to Be Adopted | Recent Accounting Pronouncements Yet to Be Adopted Reference Rate Reform. In March 2020, the FASB issued Accounting Standards Updates (“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 by 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. 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”). 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. Note 2 - Summary of Significant Accounting Policies (Continued) 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 is effective for interim and annual periods beginning after December 15, 2019 . 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 impacts 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) | 12 Months Ended |
Sep. 30, 2021 | |
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. Year Ended September 30, (In thousands) 2021 2020 Rental income $ 217 $ 217 Net gains on sale and call of investments 779 330 Net gains on sale of loans 788 116 Earnings on bank-owned life insurance 656 509 Non-interest income within the scope of other GAAP topics 2,440 1,172 ATM fees 13 10 Credit card fee income 22 21 DDA fee income 91 79 DDA service fees 90 76 Debit card fees 283 245 Other loan fee income 574 621 Other fee income 242 257 Other non-interest income 8 7 Non-interest income from contracts with customers $ 1,323 $ 1,316 Total Non-interest Income $ 3,763 $ 2,488 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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. Year Ended September 30, (In thousands, except share data) 2021 2020 Net Income (loss) $ (92) $ 644 Weighted average shares outstanding 7,616,151 7,690,675 Average unearned ESOP shares (78,743 ) (93,147 ) Basic weighted average shares outstanding 7,537,408 7,597,528 Plus: effect of dilutive options and restricted stock 708 198 Diluted weighted average common shares outstanding 7,538,116 7,597,726 Earnings (loss) per share: Basic $ (0.01) $ 0.08 Diluted $ (0.01) $ 0.08 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Investment securities | The following tables present information related to the Company’s investment securities at September 30, 2021, and 2020. September 30, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Investment Securities Available-for-Sale: U.S. government agencies $ 5,000 $ — $ (7 ) $ 4,993 State and municipal obligations 2,767 1 (3 ) 2,765 Single issuer trust preferred security 1,000 — (125 ) 875 Corporate debt securities 31,989 243 (52 ) 32,180 Total $ 40,756 $ 244 $ (187 ) $ 40,813 Investment Securities Held-to-Maturity: U.S. government agencies $ 10,000 $ 11 $ — $ 10,011 State and municipal obligations 6,062 104 (49 ) 6,117 Corporate debt securities 3,383 224 — 3,607 Mortgage-backed securities: Collateralized mortgage obligations, fixed-rate 9,062 129 (13 ) 9,178 Total $ 28,507 $ 468 $ (62 ) $ 28,913 Equity Securities Mutual funds 1,500 — — 1,500 Total Mutual funds 1,500 — — 1,500 $ Total investment securities $ 70,763 $ 712 $ (249 ) $ 71,226 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 Total $ 30,135 $ 201 $ (318 ) $ 30,018 Investment Securities Held-to-Maturity: U.S. government agencies $ — $ — $ — $ — State and municipal obligations 1,794 129 — 1,923 Corporate debt securities 3,498 260 — 3,758 Mortgage-backed securities: Collateralized mortgage obligations, fixed-rate 9,678 249 — 9,927 Total $ 14,970 $ 638 $ — $ 15,608 Equity Securities Mutual funds 1,523 — — 1,523 Total 1,523 — — 1,523 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 September 30, 2021, and 2020. September 30, 2021 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: U.S. government agencies $ 4,993 $ (7 ) $ — $ — $ 4,993 $ (7 ) State and municipal obligations 1,819 (3 ) — — 1,819 (3 ) Single issuer trust preferred security — — 875 (125 ) 875 (125 ) Corporate debt securities 8,475 (25 ) 2,973 (27 ) 11,448 (52 ) Total $ 15,287 $ (35 ) $ 3,848 $ (152 ) $ 19,135 $ (187 ) Note 6 - Investment Securities (Continued) 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 September 30, 2021, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. September 30, 2021 Amortized Cost Fair Value (In thousands) Investment Securities Available-for-Sale: Due in one year or less $ — $ — Due after one year through five years 4,445 4,434 Due after five years through ten years 27,989 28,069 Due after ten years 8,322 8,310 Total $ 40,756 $ 40,813 Investment Securities Held-to-Maturity: Due in one year or less $ — $ — Due after one year through five years 4,474 4,764 Due after five years through ten years 5,666 5,712 Due after ten years 9,304 9,259 Mortgage-backed securities: Collateralized mortgage obligations, fixed-rate 9,063 9,178 Total $ 28,507 $ 28,913 Equity Securities Mutual funds Due in one year or less $ 500 $ 500 Due after five years through ten years 1,000 1,000 Total 1,500 1,500 Total investment securities $ 70,763 $ 71,226 |
Loans Receivable and Related _2
Loans Receivable and Related Allowance for Loan Losses (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Schedule of loans receivable | Loans receivable in the Company’s portfolio, excluding loans held-for-sale, consisted of the following at the dates indicated: September 30, 2021 2020 (In thousands) Residential mortgage $ 198,710 $ 242,090 Construction and Development: Residential and commercial 61,492 65,703 Land 2,204 3,110 Total Construction and Development 63,696 68,813 Commercial: Commercial real estate 426,915 495,398 Farmland 10,297 7,517 Multi-family 66,332 67,767 Commercial and industrial 115,246 116,584 Other 10,954 10,142 Total Commercial 629,744 697,408 Consumer: Home equity lines of credit 13,491 17,128 Second mortgages 5,884 10,711 Other 2,299 2,851 Total Consumer 21,674 30,690 Total loans 913,824 1,039,001 Deferred loan fees and cost, net 629 326 Allowance for loan losses (11,472 ) (12,433 ) Total loans receivable, net $ 902,981 $ 1,026,894 |
Schedule of allowance for loan losses | The following table summarizes the primary classes of the allowance for loan losses, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of and for the years ended September 30, 2021, and 2020. Year Ended September 30, 2021 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 (In thousands) Allowance for loan losses: Beginning balance $ 1,667 $ 465 $ 23 $ 8,682 $ 47 $ 511 $ 578 $ 51 $ 130 $ 196 $ 29 $ 54 $ 12,433 Charge-offs — — — (11,930 ) — — (379 ) — — — (4 ) — (12,313 ) Recoveries 41 4 — 1 — — 2 — 17 108 2 — 176 Provisions (774) (41) (8) 10,290 9 (61 ) 2,020 3 (71 ) (217 ) (7) 34 11,176 Ending Balance $ 934 $ 428 $ 15 $ 7,043 $ 56 $ 450 $ 2,221 $ 54 $ 76 $ 87 $ 20 $ 88 $ 11,472 Ending balance: individually evaluated for impairment $ — $ — $ — $ 18 $ — $ — $ 1,488 $ — $ — $ 38 $ — $ — $ 1,544 Ending balance: collectively evaluated for impairment $ 934 $ 428 $ 15 $ 7,025 $ 56 $ 450 $ 733 $ 54 $ 76 $ 49 $ 20 $ 88 $ 9,928 Loans receivable: Ending balance $ 198,710 $ 61,492 $ 2,204 $ 426,915 $ 10,297 $ 66,332 $ 115,246 $ 10,954 $ 13,491 $ 5,884 $ 2,299 $ 913,824 Ending balance: individually evaluated for impairment $ — $ — $ — $ 286 $ — $ — $ 2,517 $ — $ — $ 102 $ — $ 2,905 Ending balance: collectively evaluated for impairment $ 198,710 $ 61,492 $ 2,204 $ 426,629 $ 10,297 $ 66,332 $ 112,729 $ 10,954 $ 13,491 $ 5,782 $ 2,299 $ 910,919 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 (In thousands) Allowance for loan losses: 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 impaired loans with no specific allowance increased from $29.4 million at September 30, 2020 to $39.7 million at September 30, 2021. The increase was primarily due to two performing commercial real estate loans totaling $11.4 million that are deemed impaired with no specific allowance . The following 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 September 30, 2021, and 2020. Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) 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) September 30, 2021: Residential mortgage $ — $ — $ 2,594 $ 2,594 $ 2,766 Commercial: Commercial real estate 286 18 33,543 33,829 33,368 Farmland — — 2,254 2,254 2,254 Commercial and industrial 2,517 1,488 630 3,147 3,584 Consumer: Home equity lines of credit — — 23 23 28 Second mortgages 102 38 696 798 874 Total impaired loans $ 2,905 $ 1,544 $ 39,740 $ 42,645 $ 42,874 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 the portfolio and related interest income recognized for the years ended September 30, 2021, and 2020. Average Impaired Loans Interest Income Recognized on Impaired Loans (In thousands) Year Ended September 30, 2021: Residential mortgages $ 3,305 $ 82 Commercial: Commercial real estate 32,812 556 Farmland 1,814 70 Commercial and industrial 951 17 Consumer: Home equity lines of credit 48 — Second mortgages 720 6 Total $ 39,650 $ 731 Year Ended September 30, 2020: Residential mortgages $ 3,506 $ 86 Consumer: — — Commercial: Commercial real estate 14,209 235 Consumer: Home equity lines of credit 28 — Second mortgages 858 6 Total $ 18,601 $ 327 |
Schedule of classes of loan portfolio | The following table presents the classes of the loan portfolio summarized by loans considered to be rated as pass and the categories of special mention, substandard and doubtful within the Company’s internal risk rating system as of September 30, 2021, and 2020. September 30, 2021 Pass Special Mention Substandard Doubtful Total (In thousands) Residential mortgage $ 195,658 $ — $ 3,052 $ — $ 198,710 Construction and Development: Residential and commercial 61,492 — — — 61,492 Land 2,204 — — — 2,204 Commercial: Commercial real estate 376,721 48,705 1,489 — 426,915 Farmland 8,043 — 2,254 — 10,297 Multi-family 57,052 9,280 — — 66,332 Commercial and industrial 106,910 — 8,336 — 115,246 Other 10,954 — — — 10,954 Consumer: Home equity lines of credit 13,390 — 101 — 13,491 Second mortgages 4,908 68 908 — 5,884 Other 2,299 — — — 2,299 Total $ 839,631 $ 58,053 $ 16,140 $ — $ 913,824 September 30, 2020 Pass Special Mention Substandard Doubtful Total (In thousands) 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 on which we are no longer accruing interest by portfolio class at the dates indicated. September 30, 2021 2020 (In thousands) Residential mortgage $ 879 $ 2,036 Commercial: Commercial real estate — 14,414 Commercial and industrial 2,517 — Consumer: Home equity lines of credit 23 26 Second mortgages 278 254 Other — — Total non-accrual loans $ 3,697 $ 16,730 |
Schedule of classes of loan portfolio summarized by aging categories | The following table presents the classes of the loan portfolio summarized by the aging categories as of September 30, 2021 and 2020. Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Total Loans Receivable Accruing 90 Days or More Past Due (In thousands) September 30, 2021: Residential mortgage $ 197,062 $ 796 $ 241 $ 611 $ 1,648 $ 198,710 $ — Construction and Development: Residential and commercial 61,492 — — — — 61,492 — Land 2,204 — — — — 2,204 — Commercial: Commercial real estate 426,915 — — — — 426,915 — Farmland 10,297 — — — — 10,297 — Multi-family 66,332 — — — — 66,332 — Commercial and industrial 115,246 — — — — 115,246 — Other 10,954 — — — — 10,954 — Consumer: Home equity lines of credit 13,394 97 — — 97 13,491 — Second mortgages 5,697 4 83 100 187 5,884 — Other 2,296 3 — — 3 2,299 — Total $ 911,889 $ 900 $ 324 $ 711 $ 1,935 $ 913,824 $ — Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Total Loans Receivable Accruing 90 Days or More Past Due (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 $185,000 and $175,000 of residential real estate properties in the process of foreclosure at September 30, 2021, and 2020, respectively. 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 (In thousands) At September 30, 2021: Residential mortgage 16 $ 3,180 4 $ 640 Commercial: Commercial real estate 5 12,180 — — Farmland 1 2,254 — — Commercial and industrial 1 549 — — Consumer Second mortgages 3 78 — — Total 26 $ 18,241 4 $ 640 At 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 the loan’s compliance with the modified terms. September 30, 2021 2020 Performing Non- Performing Performing Non- Performing (In thousands) Residential mortgage $ 2,540 $ 640 $ 1,818 $ 1,617 Commercial: Commercial real estate 12,180 — 11,439 6,652 Farmland 2,254 — — — Commercial and industrial 549 — — — Consumer Second mortgages 78 — 161 — Total $ 17,601 $ 640 $ 13,418 $ 8,269 |
Schedule of new TDR's | The following table shows the new TDRs for the twelve months ended September 30, 2021, and 2020. September 30, 2021 2020 Restructured During Period Number of Loans Pre- Modifications Outstanding Recorded Investments Post- Modifications Outstanding Recorded Investments Number of Loans Pre- Modifications Outstanding Recorded Investments Post- Modifications Outstanding Recorded Investments (In thousands) Troubled Debt Restructurings: Residential mortgage — $ — $ — 1 $ 207 $ 203 Commercial: Commercial real estate — — — 2 10,930 10,926 Farmland 1 2,287 2,287 — — — Commercial and industrial 1 549 549 — — — Total 2 $ 2,803 $ 2,803 3 $ 11,137 $ 11,129 |
Schedule of loans to principal officers, directors and their affiliates | The following table sets forth the aggregate dollar amount of loans to principal officers, directors and their affiliates in the normal course of business of the Company. Year Ended September 30, 2021 2020 (In thousands) Balance at beginning of year $ 13,733 $ 12,478 New loans 2,792 2,073 Repayments (4,604 ) (818 ) Balance at end of year $ 11,921 $ 13,733 |
Schedule of summary of mortgage servicing rights included in other assets and activity | A summary of mortgage servicing rights included within other assets in the consolidated statements of financial condition and the activity therein follows for the periods indicated: September 30, 2021 2020 (In thousands) Balance at beginning of year $ 111 $ 178 Amortization (28 ) (67 ) Balance at end of year $ 83 $ 111 |
Schedule of composition of loans by loan segment | Note 7 - Loans Receivable and Related Allowance for Loan Losses (Continued) The following tables set forth the composition of these loans by loan segments as of September 30, 2021, and 2020: September 30, 2021 Number of Loans Loan Modification Exposure Gross Loans September 30, 2021 Percentage of Gross Loans Modified (Dollars in thousands) Residential mortgage 2 $ 667 $ 198,710 0.07 % Construction and Development: Residential and commercial - - 61,492 0.00 % Land loans - - 2,204 0.00 % Total Construction and Development - - 63,696 0.00 % Commercial: Commercial real estate 6 60,567 426,915 6.63 % Farmland - - 10,297 0.00 % Multi-family - - 66,332 0.00 % Commercial and industrial - - 115,246 0.00 % Other - - 10,954 0.00 % Total Commercial 6 60,567 629,744 6.63 % Consumer: Home equity lines of credit - - 13,491 0.00 % Second mortgages - - 5,884 0.00 % Other - - 2,299 0.00 % Total Consumer - - 21,674 0.00 % Total loans 8 $ 61,234 $ 913,824 6.70 % September 30, 2020 Number of Loans Loan Modified Exposure Gross Loans September 30, 2020 Percentage of Gross Loans Modified (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 12.65 % 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 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of property and equipment, net | Property and equipment, net consisted of the following at September 30, 2021 and 2020: September 30, Estimated Useful Life (years) 2021 2020 (In thousands) Land — $ 706 $ 707 Building and improvements 10-39 11,992 11,909 Construction in process — 5 6 Furniture, fixtures and equipment 3-7 5,904 5,852 18,607 18,474 Accumulated depreciation (12,830 ) (12,200 ) $ 5,777 $ 6,274 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Schedule of deposits classified by interest rates with percentages to total deposits | Deposits classified by interest rates with percentages to total deposits at September 30, 2021 and 2020 consisted of the following: September 30, 2021 2020 Amount Percent of Total Deposits Amount Percent of Total Deposits (In thousands) Balances by types of deposit: Savings $ 50,582 5.39 % $ 45,072 5.06 % Money market accounts 385,480 41.09 277,711 31.17 Interest bearing demand 336,645 35.88 303,682 34.09 Non-interest bearing demand 53,849 5.74 50,422 5.66 826,556 88.10 676,887 75.98 Certificates of deposit 111,603 11.90 214,019 24.02 Total $ 938,159 100.00 % $ 890,906 100.00 % |
Schedule of interest expense on deposits | Interest expense on deposits consisted of the following for the years: September 30, 2021 2020 (In thousands) Savings accounts $ 59 $ 51 Money market accounts 1,726 4,010 Interest bearing demand 2,681 3,523 Certificates of deposit 2,282 5,262 Total deposits $ 6,748 $ 12,846 |
Schedule of certificates of deposit maturities | The following is a schedule of certificates of deposit maturities. September 30, 2021 (In thousands) Maturing in the Fiscal Year Ending September 30, 2022 $ 58,172 2023 21,234 2024 17,928 2025 6,319 2026 7,160 Thereafter 790 $ 111,603 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of summary of long-term borrowings | The summary of long-term borrowings as of September 30, 2021 and 2020 are as follows: September 30, 2021 2020 Weighted Average Weighted Average Amount Rate Amount Rate (In thousands) Due by September 30: 2021 $ — — $ 110,000 0.76 2022 90,000 0.76 20,000 2.29 Total FHLB Advances $ 90,000 0.76 % $ 130,000 0.99 % |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and 2020: September 30, 2021 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 $ 40,000 $ 14 Other assets $ 30,000 $ 47 Other liabilities Derivatives not designated as a hedging instrument: Interest rate swap agreement $ 44,748 $ 4,671 Other assets $ 44,748 $ 4,673 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 | Offsetting of Derivative Assets (In thousands) as of September 30, 2021 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 $ 4,685 $ — $ 4,685 $ — $ — $ 4,685 Offsetting of Derivative Liabilities (In thousands) as of September 30, 2021 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 $ 4,720 $ — $ 4,720 $ 221 $ 8,257 $ (3,758 ) Note 11 - Derivatives (Continued) 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 (loss) income and the Consolidate Statements of Operations | The tables below present the net gains (losses) recorded in accumulated other comprehensive (loss) income and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the years ended September 30, 2021 and 2020. For the Year Ended September 30, 2021 Amount of Gain Recognized in OCI on Derivative Amount of Loss Reclassified from OCI to Interest Expense (In thousands) Interest rate swap agreements $ 255 $ (995 ) Total derivatives $ 255 $ (995 ) For the Year Ended September 30, 2020 Amount of Loss Recognized in OCI on Derivative Amount of Gain Reclassified from OCI to Interest Expense (In thousands) Interest rate swap agreements $ (1,088 ) $ (437 ) Total derivatives $ (1,088 ) $ (437 ) |
Schedule of effects of derivative instruments on Consolidated Statements of Operations | Note 11 - Derivatives (Continued) The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the years ended September 30, 2021 and 2020. For the Year Ended September 30, 2021 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 $ 2 Total $ 2 For the Year Ended September 30, 2020 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 $ (6 ) Total $ (6 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 at September 30, 2021 and 2020: September 30, 2021 Total Level 1 Level 2 Level 3 (In thousands) Assets: Investment securities available-for-sale: Debt securities: U.S. government agencies $ 4,993 $ — $ 4,993 $ — State and municipal obligations 2,765 — 2,765 — Single issuer trust preferred security 875 — 875 — Corporate debt securities 32,180 — 32,180 — Total investment securities available-for-sale $ 40,813 $ — $ 40,813 $ — Equity securities: Mutual fund $ 1,500 $ 1,000 $ — $ 500 Total equity investment securities $ 1,500 $ 1,000 $ — $ 500 Derivative instruments $ 4,685 $ — $ 4,685 $ — Liabilities: Derivative instruments $ 4,720 $ — $ 4,720 $ — 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 — Total investment securities available-for-sale $ 30,018 $ — $ 30,018 $ — Equity securities: Mutual fund $ 1,523 $ 1,023 $ — $ 500 Total equity investment securities $ 1,523 $ 1,023 $ — $ 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 years ended September 30, 2021 and September 30, 2020: 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, September 30, 2021 $ 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, September 30, 2020 $ 500 |
Schedule of assets measured at fair value on a non recurring basis | For assets measured at fair value on a nonrecurring basis in fiscal year 2021 and fiscal year 2020 that were still held at the end of the period, the following table provides the level of valuation assumptions used to determine each adjustment and the carrying value of the related individual assets or portfolios at September 30, 2021 and 2020: September 30, 2021 Total Level 1 Level 2 Level 3 (In thousands) Other real estate owned $ 4,961 $ — $ — $ 4,961 Impaired loans (1) 33,876 18,900 — 14,976 Total $ 38,837 $ 18,900 $ — $ 19,937 September 30, 2021 Fair Value at September 30, 2021 Valuation Technique Unobservable Input Range/(Weighted Average) (In thousands) Other real estate owned $ 4,961 Appraisal of Collateral(2) Collateral discount(3) 6.4%/(6.4%) Impaired loans (1) 33,876 Appraisal of Collateral(2) Collateral discount(3) (4.0%) – (12%)/(8%) Total $ 38,837 (1) Consisted of eight loans with an aggregate balance of $35.4 million and with $1.5 million 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) (In thousands) Other real estate owned $ 5,796 Appraisal of Collateral(2) Collateral discount(3) 6.5%/(6.5%) Impaired loans (1) 7,920 Appraisal of Collateral(2) Collateral discount(3) (2.0%) - 20%/(1.4%) Total $ 13,716 (1) Consisted of four 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 September 30, 2021 and 2020 were as follows: Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) September 30, 2021: Financial assets: Cash and cash equivalents $ 136,590 $ 136,590 $ 136,590 $ — $ — Investment securities available-for-sale 40,813 40,813 — 40,813 — Investment securities held-to-maturity 28,507 28,913 — 28,913 — Equity securities 1,500 1,500 1,000 — 500 Loans receivable, net (including impaired ) 902,981 900,357 — — 900,357 Loans Held For Sale 33,199 33,199 19,583 — 13,616 Accrued interest receivable 3,512 3,512 — 3,512 — Restricted stock 7,776 7,776 — 7,776 — Mortgage servicing rights (included in Other Assets) 83 83 — 83 — Derivatives (included in Other Assets) 4,685 4,685 — 4,685 — Financial liabilities: Savings accounts 50,582 50,582 — 50,582 — Checking and NOW accounts 390,494 390,494 — 390,494 — Money market accounts 385,480 385,480 — 385,480 — Certificates of deposit 111,603 113,323 — 113,323 — Borrowings (excluding sub debt) 90,000 90,215 — 90,215 — Subordinated debt 24,934 25,027 — 25,027 — Derivatives (included in Other Liabilities) 4,720 4,720 — 4,720 — Accrued interest payable 572 572 — 572 — September 30, 2020: Financial assets: Cash and cash equivalents $ 61,439 $ 61,439 $ 61,439 $ — $ — Investment securities available-for-sale 30,018 30,018 — 30,018 — Investment securities held-to-maturity 14,970 15,608 — 15,608 — Equity securities 1,523 1,523 1,023 — 500 Loans receivable, net (including impaired loans) 1,026,984 1,035,941 — — 1,035,941 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 — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred income taxes | Deferred income taxes at September 30, 2021 and 2020 were as follows: September 30, 2021 2020 (In thousands) DTAs: Allowance for loan losses $ 2,807 $ 3,053 Non-accrual interest 276 29 Supplement Employer Retirement Plan 173 193 Federal and State net operating loss 155 6 Unrealized loss on investments available-for-sale — 296 Depreciation 53 36 Lease liability 448 656 Other 113 89 Total DTAs 4,025 4,358 Valuation allowance for DTAs — — Total DTAs, Net of Valuation Allowance $ 4,025 $ 4,358 DTLs: Unrealized gain on investments available-for-sale (3 ) — Mortgage servicing rights (20 ) (27 ) Right of use asset (440 ) (648 ) Other (32 ) (3 ) Total DTLs (495 ) (678 ) DTAs, Net $ 3,530 $ 3,680 |
Schedule of income tax benefit | Income tax benefit for the fiscal years ended September 30, 2021 and 2020 was comprised of the following: September 30, 2021 2020 (In thousands) Federal: Current $ (62) $ 394 Deferred (112 ) (495 ) (174 ) (101 ) State: Current - 271 Deferred (38 ) (206 ) (38 ) 65 Total income tax benefit $ (212 ) $ (36 ) |
Schedule of statutory federal income tax rate to the actual income tax benefit | A reconciliation from the expected federal income tax expense (benefit) computed at the statutory federal income tax rate to the actual income tax benefit included in the consolidated statements of income for the fiscal years ended September 30, 2021 and 2020: September 30, 2021 2020 (In thousands) Tax at statutory rate $ (64) (21.0) % $ 128 21.0 % Adjustments resulting from: State tax, net of federal benefit (30) (9.8) 51 8.5 Tax-exempt interest (26) (8.6) (59 ) (9.7 ) Earnings on bank-owned life insurance (138 ) (45.3) (107 ) (17.6 ) Other 46 15.1 (49 ) (8.1 ) Total $ (212 ) (69.6) % $ (36 ) (5.9 )% |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the fiscal years ended September 30, 2021 and 2020 were as follows: September 30, 2021 2020 In thousands Operating lease cost $ 661 $ 698 Finance lease cost — — Short-term lease cost 95 104 Total $ 756 $ 802 |
Schedule of Supplemental Information of Leases | Supplemental information at and for September 30, 2021 and the fiscal year ended September 30, 2020 related to leases was as follows: September 30, 2021 September 30, 2020 (Dollars in thousands) (Dollars in thousands) Supplemental balance sheet information Operating lease right-of-use assets $ 1,796 $ 2,638 Operating lease liabilities $ 1,830 $ 2,671 Weighted average remaining lease term 4.50 years 5.40 years Weighted average discount rate 1.99 % 1.99 % Twelve Months Ended September 30, 2021 Twelve Months Ended September 30, 2020 (In thousands) (In thousands) Supplemental cash flow information Operating cash flows from operating leases $ 893 $ 667 ROU assets obtained in exchange for lease obligations $ 3,279 $ 3,279 |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities were as follows: Operating Leases (In thousands) Years ended September 30: 2022 $ 449 2023 431 2024 431 2025 432 2026 153 Thereafter 51 Total lease payments $ 1,947 Less: imputed interest (117) Total $ 1,830 |
Schedule of Future Minimum Rental Commitments Under Lease | The Company receives rents from the lease of office and residential space owned by the Company. Rental income is included in Other Income. Future minimum rental commitments under these leases are (in thousands): Years ending September 30: 2022 $ 95 2023 — 2024 — 2025 — 2026 — $ 95 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of financial instruments outstanding | Note 15 – Commitments and Contingencies (Continued) At September 30, 2021 and 2020, the following financial instruments were outstanding whose contract amounts represent credit risk: September 30, 2021 2020 (In thousands) Commitments to extend credit: Future loan commitments $ 32,889 $ 7,687 Undisbursed construction loans 12,672 24,551 Undisbursed home equity lines of credit 25,722 24,751 Undisbursed commercial lines of credit 19,901 22,918 Undisbursed commercial unsecured lines of credit 66,941 58,445 Overdraft protection lines 1,549 1,362 Standby letters of credit 9,026 9,074 Total Commitments $ 168,700 $ 148,788 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and 2020: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (1) (In thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio As of September 30, 2021: Tier 1 Leverage (Core) Capital (to average assets) $ 142,132 11.84 % $ 48,020 4.00 % N/A N/A Common Equity Tier 1 Capital (to risk- weighted assets) 142,132 14.53 % 44,024 4.50 % N/A NA Tier 1 Capital (to risk-weighted assets) 142,132 14.53 % 58,699 6.00 % N/A NA Total Risk-Based Capital (to risk- weighted assets) 178,620 18.26 % 78,265 8.00 % N/A N/A As of September 30, 2020: Tier 1 Leverage (Core) Capital (to average assets) $ 141,681 11.63 % $ 48,743 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 (1) The Company is not subject to the regulatory capital ratios imposed by Basel III on bank holding companies because the Company was deemed to be a small bank holding company as of September 30, 2021 and 2020. Note 16 - Regulatory Matters (Continued) The following table summarizes the Bank’s compliance with applicable regulatory capital requirements as of September 30, 2021 and 2020: To Be Well Capitalized For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions (In thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio As of September 30, 2021: Tier 1 Leverage (Core) Capital (to average assets) $ 157,518 13.14 % $ 47,946 4.00 % $ 59,933 5.00 % Common Equity Tier 1 Capital (to risk- weighted assets) 157,518 16.13 % 43,934 4.50 % 63,460 6.50 % Tier 1 Capital (to risk-weighted assets) 157,518 16.13 % 58,579 6.00 % 78,105 8.00 % Total Risk-Based Capital (to risk-weighted assets) 169,072 17.32 % 78,105 8.00 % 97,632 10.00 % As of September 30, 2020: Tier 1 Leverage (Core) Capital (to average 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 % |
Schedule of reconciliation of Bank's equity | The following table presents a reconciliation of the Bank’s equity determined using GAAP and its regulatory capital amounts as of September 30, 2021 and 2020: September 30, 2021 2020 (In thousands) Bank GAAP equity $ 157,554 $ 154,487 Net unrealized loss on securities available for sale, net of income taxes (45) 93 Net unrealized loss on derivatives, net of income taxes 9 995 Tangible Capital, Core Capital and Tier 1 Capital 157,518 155,575 Allowance for loan losses 11,554 12,515 Total Risk-Based Capital $ 169,072 $ 168,090 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss) included in shareholders’ equity are as follows: September 30, 2021 2020 (In thousands) Net unrealized holding gains (losses) on available-for- sale securities $ 57 $ (118 ) Tax effect (12 ) 25 Net of tax amount 45 (93 ) Fair value adjustment on derivatives (11 ) (1,260 ) Tax effect 2 265 Net of tax amount (9 ) (995 ) Total accumulated other comprehensive income (loss) $ 36 $ (1,088 ) |
Schedule of other comprehensive income (loss) and related tax effects | Note 17 – Comprehensive Income (Continued) Other comprehensive income (loss) and related tax effects are presented in the following table: Year Ended September 30, 2021 2020 (In thousands) Net unrealized holding gains on available-for-sale securities $ 950 $ 320 Reclassification adjustment for net gains arising during the period (779 ) (330 ) Adjustment for loss recorded on replacement of derivative (9) 31 Amortization of unrealized holding losses on securities available-for-sale transferred to held-to-maturity 4 3 Fair value adjustment on derivatives 1,258 (681 ) Other comprehensive income (loss) before taxes 1,424 (657 ) Tax effect (300) 138 Total other comprehensive income (loss) $ 1,124 $ (519 ) |
Equity Based Incentive Compen_2
Equity Based Incentive Compensation Plan (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of assumptions used in determining fair value of stock option | The assumptions used in determining the fair value of stock option grants for the year ended September 30, 2021 are as follows: Weighted average fair value of awards $ 6.06 Risk-free rate 1.25 % Dividend yield — % Volatility 29.72 % Expected life 6.5 years The assumptions used in determining the fair value of stock option grants for the year ended September 30, 2020 are as follows: Weighted average fair value of awards $ 4.72 Risk-free rate 1.22 % Dividend yield — % Volatility 19.86 % Expected life 6.5 years |
Schedule of stock option activity | The following is a summary of currently outstanding options at September 30, 2021: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding, beginning of year 25,830 $ 21.57 $ — Granted 7,000 $ 18.69 $ — Exercised — $ — $ — Forfeited/cancelled/expired — $ — $ — Outstanding, end of year 32,830 $ 20.96 7.392 $ 1,940 Exercisable at end of year 13,310 $ 21.53 6.193 $ 1,940 Nonvested at end of year 19,520 $ 20.56 The following is a summary of currently outstanding options at September 30, 2020: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding, beginning of year 18,830 $ 22.05 $ 21,350 Granted 7,000 $ 20.28 $ — Exercised — $ — $ — Forfeited/cancelled/expired — $ — $ — Outstanding, end of year 25,830 $ 21.57 7.819 $ — Exercisable at end of year 8,140 $ 21.50 6.794 $ — Nonvested at end of year 17,690 $ 21.60 |
Schedule of restricted stock outstanding | The table below summarizes the activity for the Company’s restricted stock outstanding at September 30, 2021: Shares Weighted Average Fair Value Outstanding, beginning of year 30,653 $ 21.98 Granted 12,363 18.69 Vested (11,530 ) 20.82 Forfeited/cancelled/expired — — Outstanding, end of year 31,486 $ 21.10 The table below summarizes the activity for the Company’s restricted stock outstanding at September 30, 2020: Shares Weighted Average Fair Value Outstanding, beginning of year 18,493 $ 21.78 Granted 23,821 19.62 Vested (10,051 ) 16.62 Forfeited/cancelled/expired (1,610 ) 21.43 Outstanding, end of year 30,653 $ 21.98 |
Condensed Financial Informati_2
Condensed Financial Information - Parent Company Only (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule of condensed statements of financial condition | Condensed Statements of Financial Condition September 30, 2021 2020 (In thousands) Assets Cash and Cash Equivalents $ 6,878 $ 8,411 Investment in subsidiaries 157,554 154,487 Loans receivable, net 934 1,104 Other assets 1,916 1,536 Total Assets $ 167,282 $ 165,538 Liabilities Subordinated debt $ 24,934 $ 24,776 Accrued interest payable 196 196 Accounts payable (16 ) (27 ) Total Liabilities 25,114 24,945 Shareholders’ Equity 142,168 140,593 Total Liabilities and Shareholders’ Equity $ 167,282 $ 165,538 |
Schedule of condensed statements of operations | Condensed Statements of Operations Year Ended September 30, 2021 2020 (In thousands) Income Interest income $ 51 $ 59 Total Interest Income 51 59 Expense Long-term borrowings 1,536 1,531 Total Interest Expense 1,536 1,531 Other operating expenses 560 375 Total Other Expenses 560 375 Total Expense 2,096 1,906 Loss before Equity in Undistributed Net Income of Subsidiaries and Income Tax Benefit (2,045 ) (1,847 ) Equity in Undistributed Net Income of Subsidiaries 1,473 2,071 Income tax benefit (480 ) (420 ) Net (Loss) Income $ (92 ) $ 644 |
Schedule of condensed statements of comprehensive income | Condensed Statements of Comprehensive Income Year Ended September 30, (In thousands) 2021 2020 Net (Loss) Income $ (92 ) $ 644 Other Comprehensive (Loss) Income, Net of Tax: Unrealized holding gains on available-for- sale securities 950 320 Tax effect (199 ) (67 ) Net of tax amount 751 253 Reclassification adjustment for net gains arising during the period ( 1) (779 ) (330 ) Tax effect 163 69 Net of tax amount (616 ) (261 ) Adjustment for loss recorded on replacement of derivative (9 ) 31 Accretion of unrealized holding losses on securities transferred from available-for-sale to held-to-maturity ( 2) 4 3 Tax effect (1 ) (1 ) Net of tax amount 3 2 Fair value adjustment on derivatives 1,258 (681 ) Tax effect (263 ) 137 Net of tax amount 995 (544 ) Total other comprehensive income (loss) 1,124 (519 ) Total comprehensive income $ 1,032 $ 125 (1) (2) Amounts are included in interest and dividends on investment securities on the Consolidated Statements of Operations. |
Schedule of condensed statements of cash flows | Condensed Statements of Cash Flows Year Ended September 30, 2021 2020 (In thousands) Cash Flows from Operating Activities Net (loss) income $ (92 ) $ 644 Undistributed net income of subsidiaries (1,473 ) (2,071 ) ESOP expense 248 236 Stock based compensation 295 253 Amortization of subordinated debt issuance costs 158 157 Increase in other assets ( 850 ) (838 ) Increase (decrease) in other liabilities 11 (41 ) Net Cash Used in Operating Activities (1,703 ) (1,660 ) Cash Flows from Investing Activities Net decrease in loans 170 162 Net Cash Provided by Investing Activities 170 162 Cash Flows from Financing Activities Acquisition of treasury stock — (2,529 ) Proceeds from other borrowings 5,000 — Repayments of other borrowings (5,000 ) — Net Cash (Used in) Provided by Financing Activities — (2,529 ) Net Decrease in Cash and Cash Equivalents (1,533 ) (4,027 ) Cash and Cash Equivalents - Beginning 8,411 12,438 Cash and Cash Equivalents - Ending $ 6,878 $ 8,411 |
Quarterly Financial Informati_2
Quarterly Financial Information of Malvern Bancorp Inc. (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | The following tables are a summary of certain quarterly financial data for the fiscal years ended September 30, 2021 and 2020. 2021 4 th. 3 rd. 2 nd. 1 st. (In thousands, except share data) Total Interest and Dividend Income $ 8,862 $ 9,419 $ 9,539 $ 10,596 Total Interest Expense 2,037 2,290 2,737 3,292 Net Interest Income 6,825 7,129 6,802 7,304 Provision for Loan Losses 10,626 — — 550 Total Other Income 579 793 1,167 1,224 Total Other Expenses 5,084 5,832 5,063 4,972 Income (Loss) before income tax expense (8,306 ) 2,090 2,906 3,006 Income tax (benefit) expense (2,116 ) 489 682 733 Net (Loss) Income $ (6,190 ) $ 1,601 $ 2,224 $ 2,273 (Loss) Earnings Per Common Share: Basic $ (0.82 ) $ 0.21 $ 0.30 $ 0.30 Diluted $ (0.82 ) $ 0.21 $ 0.30 $ 0.30 Weighted Average Common Shares Outstanding Basic 7,548,958 7,545,371 7,529,408 7,525,808 Diluted 7,550,766 7,546,200 7,530,151 7,526,376 Note 21 – Quarterly Financial Information (Unaudited) (Continued) 2021 4 th. 3 rd. 2 nd. 1 st. (In thousands, except share data) Cash and due from depository institutions $ 99,670 $ 90,441 $ 99,358 $ 83,764 Interest-bearing deposits in depository institutions 36,920 14,513 9,556 25,458 Investment securities, available for sale, at fair value 40,813 32,998 27,397 33,704 Equity Securities 1,500 1,504 1,502 1,520 Investment securities held to maturity 28,507 31,795 25,834 14,161 Restricted stock, at cost 7,776 7,896 8,891 9,327 Loans receivable, net of allowance for loan losses 902,981 940,735 974,596 990,346 Loans held-for-sale 33,199 — — — OREO 4,961 4,961 5,796 5,796 Accrued interest receivable 3,512 3,370 3,598 4,051 Operating lease right-of-use-assets 1,796 2,168 2,322 2,479 Property and equipment, net 5,777 5,902 6,040 6,154 Deferred income taxes, net 3,530 3,389 3,535 3,601 Bank-owned life insurance 26,056 25,889 25,725 25,564 Other assets 12,145 20,183 12,269 14,999 Total assets $ 1,209,143 $ 1,185,744 $ 1,206,419 $ 1,220,924 Deposits $ 938,159 $ 907,704 $ 912,213 $ 900,465 FHLB advances 90,000 90,000 110,000 130,000 Secured borrowings — — — — Other borrowings — — — 5,000 Subordinated debt 24,934 24,895 24,855 24,816 Operating lease liabilities 1,830 2,204 2,357 2,512 Other liabilities 12,052 12,749 11,143 14,865 Shareholders' equity 142,168 148,192 145,851 143,266 Total liabilities and shareholders' equity $ 1,209,143 $ 1,185,744 $ 1,206,419 $ 1,220,924 Note 21 – Quarterly Financial Information (Unaudited) (Continued) 2020 4 th. 3 rd. 2 nd. 1 st. (In thousands, except share data) Total Interest and Dividend Income $ 10,340 $ 10,498 $ 11,629 $ 11,840 Total Interest Expense 3,620 3,867 4,836 4,952 Net Interest Income 6,720 6,631 6,793 6,888 Provision for Loan Losses 7,400 435 625 2,150 Total Other Income 692 389 964 443 Total Other Expenses 4,558 4,684 4,638 4,422 Income before income tax expense (4,546 ) 1,901 2,494 759 Income tax expense (1,043 ) 447 586 (26 ) Net Income $ (3,503 ) $ 1,454 $ 1,908 $ 785 Earnings Per Common Share: Basic $ (0.46 ) $ 0.19 $ 0.25 $ 0.10 Diluted $ (0.46 ) $ 0.19 $ 0.25 $ 0.10 Weighted Average Common Shares Outstanding Basic 7,522,199 7,538,375 7,663,771 7,665,842 Diluted 7,522,360 7,538,375 7,663,771 7,665,842 Note 21 – Quarterly Financial Information (Unaudited) (Continued) 2020 4 th. 3 rd. 2 nd. 1 st. (In thousands, except share data) Cash and due from depository institutions $ 16,386 $ 30,653 $ 1,829 $ 1,337 Interest-bearing deposits in depository institutions 45,053 28,291 124,239 158,465 Investment securities, available for sale, at fair value 30,018 31,722 20,325 22,225 Equity Securities 1,523 1,523 1,514 1,498 Investment securities held to maturity 14,970 15,921 18,046 20,578 Restricted stock, at cost 9,622 9,766 10,913 11,115 Loans receivable, net of allowance for loan losses 1,026,894 1,032,318 1,007,132 996,879 OREO 5,796 5,796 5,796 5,796 Accrued interest receivable 3,677 5,680 4,121 4,061 Operating lease right-of-use-assets 2,638 2,799 2,959 3,119 Property and equipment, net 6,274 6,355 6,476 6,594 Deferred income taxes, net 3,680 3,103 2,974 2,806 Bank-owned life insurance 25,400 20,270 20,144 20,018 Other assets 16,344 13,873 13,869 8,341 Total assets $ 1,208,275 $ 1,208,070 $ 1,240,337 $ 1,262,832 Deposits $ 890,906 $ 884,444 $ 915,900 $ 943,819 FHLB advances 130,000 130,000 133,000 133,000 Secured borrowing 4,225 4,225 4,225 4,250 Subordinated debt 24,776 24,737 24,697 24,658 Operating lease liabilities 2,671 2,824 2,976 3,128 Other liabilities 15,104 18,309 16,389 10,442 Shareholders' equity 140,593 143,531 143,150 143,535 Total liabilities and shareholders' equity $ 1,208,275 $ 1,208,070 $ 1,240,337 $ 1,262,832 |
Organizational Structure and _2
Organizational Structure and Nature of Operations - (Narrative) (Detail) | 12 Months Ended |
Sep. 30, 2021 | |
Bell Rock Capital, LLC [Member] | |
Non-controlling ownership percentage | 10.00% |
Bankers Settlement Services Capital Region, LLC [Member] | |
Non-controlling ownership percentage | 3.39% |
Malvern Insurance Associates LLC [Member] | |
Ownership percentage | 100.00% |
Delaware Statutory Trusts [Member] | |
Mortgage backed securities percentage | 5.00% |
Delaware Statutory Trusts [Member] | Coastal Asset Management Co. [Member] | |
Mortgage backed securities percentage | 95.00% |
Joliet 55 LLC [Member] | |
Ownership percentage | 100.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Detail) | Dec. 27, 2020 | Mar. 27, 2020USD ($) | Mar. 16, 2020 | Mar. 03, 2020 | Oct. 31, 2021Loan | Sep. 30, 2021USD ($)shares | Sep. 30, 2021USD ($)SegmentLoanshares | Sep. 30, 2020USD ($)shares | Mar. 26, 2020 |
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Debt Instrument Basis Spread On Variable Rate Reduced | 0.50% | ||||||||
Look-back period to calculate loss rates | 1 year | ||||||||
Percentage of mortgage insurance on loans | 80.00% | ||||||||
Amount of net repurchases | $ 1,800,000 | $ 1,500,000 | |||||||
Number of FHLB shares outstanding | shares | 103,793 | 103,793 | 122,177 | ||||||
Dividends, restricted stock | $ 459,000 | $ 631,000 | |||||||
Property and equipment, depreciation method | straight-line and accelerated methods | ||||||||
Expenses of matching contribution related to the plan | $ 77,000 | 131,000 | |||||||
Accrued amount for the plans included in other liabilities | $ 709,000 | 709,000 | 784,000 | ||||||
Distributions made during the period | 79,000 | 94,000 | |||||||
Expense/(benefit) associated with the plans | 4,000 | 4,000 | |||||||
Recognition of swap fees | 0 | 371,000,000 | |||||||
Advertising | $ 109,000 | 119,000 | |||||||
Number of Reportable Segments | Segment | 1 | ||||||||
Loan held for sale | 33,199,000 | $ 33,199,000 | 0 | ||||||
Charge-off | (12,313,000) | (8,396,000) | |||||||
Investment in Federal Home Loan Bank Stock [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Dividends, restricted stock | 459,000 | 631,000 | |||||||
Federal Home Loan Bank of Philadelphia [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Cash reserve requirements | 0 | 0 | 0 | ||||||
Cash reserve requirement ratios reduced percentage | 0.00% | ||||||||
Investment securities | 0 | $ 0 | 0 | ||||||
CARES Act [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Relief package | $ 900,000,000,000 | ||||||||
Relief package, expiry date | Dec. 31, 2020 | ||||||||
2021 Consolidated Appropriations Act [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Relief package, expiry date | Jan. 1, 2022 | ||||||||
Number of days extended relief amount after termination of national emergency declared by president | 60 days | ||||||||
Minimum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Federal fund interest rate | 0.00% | 1.00% | 0.00% | ||||||
Mortgage loan maturity term | 10 years | ||||||||
Troubled debt restructured term | 6 months | ||||||||
Useful life | P3Y | ||||||||
Maximum [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Federal fund interest rate | 0.25% | 1.25% | 0.25% | ||||||
Mortgage loan maturity term | 30 years | ||||||||
Percentage of loan to value ratio | 95.00% | ||||||||
Commercial business loan term | 10 years | ||||||||
Useful life | 39 years | ||||||||
Commercial Real Estate [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of loans transferred from loans receivable held for investment to loans held for sale | Loan | 4 | ||||||||
Loans transferred from loans receivable held for investment to loans held for sale | $ 32,500,000 | ||||||||
Charge-off | 10,800,000 | $ (11,930,000) | $ (8,330,000) | ||||||
Commercial Real Estate [Member] | Subsequent Event [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Number of loans sold | Loan | 3 | ||||||||
Credit Concentration Risk [Member] | Loans Held for Investment [Member] | Commercial Real Estate [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Concentration risk percentage | 4.70% | 4.80% | |||||||
Error Correction, Immaterial [Member] | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Adjustment to non-accrued interest on charged off loans | $ 350,000 |
Non-Interest Income - Schedule
Non-Interest Income - Schedule of Company's Non-Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Rental income | $ 217 | $ 217 | ||||||||
Net gains on sale and call of investments | 779 | 330 | ||||||||
Net gains on sale of loans | 788 | 116 | ||||||||
Earnings on bank-owned life insurance | 656 | 509 | ||||||||
Non-interest income within the scope of other GAAP topics | 2,440 | 1,172 | ||||||||
Non-interest income from contracts with customers | 1,323 | 1,316 | ||||||||
Total Other Income | $ 579 | $ 793 | $ 1,167 | $ 1,224 | $ 692 | $ 389 | $ 964 | $ 443 | 3,763 | 2,488 |
ATM Fees [Member] | ||||||||||
Non-interest income from contracts with customers | 13 | 10 | ||||||||
Credit Card Fee Income [Member] | ||||||||||
Non-interest income from contracts with customers | 22 | 21 | ||||||||
DDA Fee Income [Member] | ||||||||||
Non-interest income from contracts with customers | 91 | 79 | ||||||||
DDA Service Fees [Member] | ||||||||||
Non-interest income from contracts with customers | 90 | 76 | ||||||||
Debit Card Fees [Member] | ||||||||||
Non-interest income from contracts with customers | 283 | 245 | ||||||||
Other Loan Fee Income [Member] | ||||||||||
Non-interest income from contracts with customers | 574 | 621 | ||||||||
Other Fee Income [Member] | ||||||||||
Non-interest income from contracts with customers | 242 | 257 | ||||||||
Other Non-interest Income [Member] | ||||||||||
Non-interest income from contracts with customers | $ 8 | $ 7 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Detail) - shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Stock options | 7,000 | 7,000 |
Restricted shares issued | 12,363 | 22,211 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||||||||
Net Income (Loss) | $ (6,190) | $ 1,601 | $ 2,224 | $ 2,273 | $ (3,503) | $ 1,454 | $ 1,908 | $ 785 | $ (92) | $ 644 |
Weighted average shares outstanding | 7,616,151 | 7,690,675 | ||||||||
Average unearned ESOP shares | (78,743) | (93,147) | ||||||||
Basic weighted average shares outstanding | 7,548,958 | 7,545,371 | 7,529,408 | 7,525,808 | 7,522,199 | 7,538,375 | 7,663,771 | 7,665,842 | 7,537,408 | 7,597,528 |
Plus: effect of dilutive options and restricted stock | 708 | 198 | ||||||||
Diluted weighted average common shares outstanding | 7,550,766 | 7,546,200 | 7,530,151 | 7,526,376 | 7,522,360 | 7,538,375 | 7,663,771 | 7,665,842 | 7,538,116 | 7,597,726 |
Earnings (loss) per share: | ||||||||||
Basic | $ (0.82) | $ 0.21 | $ 0.30 | $ 0.30 | $ 0.46 | $ 0.19 | $ 0.25 | $ 0.10 | $ 0.01 | $ 0.08 |
Diluted | $ (0.82) | $ 0.21 | $ 0.30 | $ 0.30 | $ 0.46 | $ 0.19 | $ 0.25 | $ 0.10 | $ 0.01 | $ 0.08 |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions | 4 Months Ended | 12 Months Ended | |
Sep. 30, 2008 | Sep. 30, 2021 | Sep. 30, 2020 | |
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 five percent, is being repaid in quarterly installments through 2026 principally from the Bank’s contributions to the ESOP. | ||
Committed to be released ESOP shares | 14,400 | 14,400 | |
Number of unallocated shares | 71,565 | ||
Number of allocated shares held by the ESOP | 187,653 | ||
Aggregate fair value of shares held by the ESOP | $ 1.2 |
Investment Securities (Detail)
Investment Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||||||||
Amortized Cost | $ 40,756 | $ 30,135 | ||||||
Gross Unrealized Gains | 244 | 201 | ||||||
Gross Unrealized Losses | (187) | (318) | ||||||
Fair value | 40,813 | $ 32,998 | $ 27,397 | $ 33,704 | 30,018 | $ 31,722 | $ 20,325 | $ 22,225 |
Amortized Cost | 28,507 | 31,795 | 25,834 | 14,161 | 14,970 | 15,921 | 18,046 | 20,578 |
Gross Unrealized Gains | 468 | 638 | ||||||
Gross Unrealized Losses | (62) | |||||||
Fair value | 28,913 | 15,608 | ||||||
Equity securities Amortized Cost | 1,500 | 1,523 | ||||||
Equity securities Fair Value | 1,500 | $ 1,504 | $ 1,502 | $ 1,520 | 1,523 | $ 1,523 | $ 1,514 | $ 1,498 |
Total investment and equity securities Amortized Cost | 70,763 | 46,628 | ||||||
Total investment and equity securities Gross Unrealized Gains | 712 | 839 | ||||||
Total investment and equity securities Gross Unrealized Losses | (249) | (318) | ||||||
Total investment and equity securities Fair Value | 71,226 | 47,149 | ||||||
U. S. Government Agencies [Member] | ||||||||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||||||||
Amortized Cost | 5,000 | 5,025 | ||||||
Gross Unrealized Gains | 15 | |||||||
Gross Unrealized Losses | (7) | |||||||
Fair value | 4,993 | 5,040 | ||||||
Amortized Cost | 10,000 | |||||||
Gross Unrealized Gains | 11 | |||||||
Fair value | 10,011 | |||||||
State And Municipal Obligations [Member] | ||||||||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||||||||
Amortized Cost | 2,767 | 3,101 | ||||||
Gross Unrealized Gains | 1 | 4 | ||||||
Gross Unrealized Losses | (3) | |||||||
Fair value | 2,765 | 3,105 | ||||||
Amortized Cost | 6,062 | 1,794 | ||||||
Gross Unrealized Gains | 104 | 129 | ||||||
Gross Unrealized Losses | (49) | |||||||
Fair value | 6,117 | 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 | (125) | (75) | ||||||
Fair value | 875 | 925 | ||||||
Corporate Debt Securities [Member] | ||||||||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||||||||
Amortized Cost | 31,989 | 21,009 | ||||||
Gross Unrealized Gains | 243 | 182 | ||||||
Gross Unrealized Losses | (52) | (243) | ||||||
Fair value | 32,180 | 20,948 | ||||||
Amortized Cost | 3,383 | 3,498 | ||||||
Gross Unrealized Gains | 224 | 260 | ||||||
Fair value | 3,607 | 3,758 | ||||||
Collateralized Mortgage Obligations [Member] | Fixed Rate [Member] | ||||||||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||||||||
Amortized Cost | 9,062 | 9,678 | ||||||
Gross Unrealized Gains | 129 | 249 | ||||||
Gross Unrealized Losses | (13) | |||||||
Fair value | 9,178 | 9,927 | ||||||
Mutual Fund [Member] | ||||||||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||||||||
Equity securities Amortized Cost | 1,500 | 1,523 | ||||||
Equity securities Fair Value | $ 1,500 | $ 1,523 |
Investment Securities - (Narrat
Investment Securities - (Narrative) (Detail) | 12 Months Ended | |
Sep. 30, 2021USD ($)Investment | Sep. 30, 2020USD ($)Investment | |
Marketable Securities [Line Items] | ||
Sales | $ 17,297,000 | $ 8,901,000 |
Available-for-sale investment securities, calls | 2,200,000 | 7,400,000 |
Held-to-maturity investment securities | 10,600,000 | 0 |
Gain on sale of securities available for sales and calls | 779,000 | 330,000 |
Fair value of available for sale securities transferred | 2,900,000 | 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 | |
State And Municipal Obligations [Member] | ||
Marketable Securities [Line Items] | ||
Number of portfolio investments | Investment | 2 | |
Mutual Fund [Member] | ||
Marketable Securities [Line Items] | ||
Number of portfolio investments | Investment | 1 | |
Corporate Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Number of portfolio investments | Investment | 5 | 5 |
Mortgage-Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Number of portfolio investments | Investment | 1 | |
Single Issuer Trust Preferred Security [Member] | ||
Marketable Securities [Line Items] | ||
Number of portfolio investments | Investment | 1 | 1 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Loss (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Less than 12 Months: Fair Value | $ 15,287 | |
Less than 12 Months: Unrealized Losses | (35) | |
12 Months or longer: Fair Value | 3,848 | |
12 Months or longer: Unrealized Losses | (152) | |
Total: Fair Value | 19,135 | |
Total: Unrealized Losses | (187) | |
Total investment securities in an unrealized loss position less than 12 months fair value | $ 4,426 | |
Total investment securities in an unrealized loss position less than 12 months gross unrealized loss | (74) | |
Total investment securities in an unrealized loss position 12 months or more fair value | 4,255 | |
Total investment securities in an unrealized loss position 12 months or more gross unrealized loss | (244) | |
Total investment securities in an unrealized loss position fair value | 8,681 | |
Total investment securities in an unrealized loss position gross unrealized loss | (318) | |
U. S. Government Agencies [Member] | ||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Less than 12 Months: Fair Value | 4,993 | |
Less than 12 Months: Unrealized Losses | (7) | |
Total: Fair Value | 4,993 | |
Total: Unrealized Losses | (7) | |
State And Municipal Obligations [Member] | ||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Less than 12 Months: Fair Value | 1,819 | |
Less than 12 Months: Unrealized Losses | (3) | |
Total: Fair Value | 1,819 | |
Total: Unrealized Losses | (3) | |
Single Issuer Trust Preferred Security [Member] | ||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
12 Months or longer: Fair Value | 875 | 925 |
12 Months or longer: Unrealized Losses | (125) | (75) |
Total: Fair Value | 875 | 925 |
Total: Unrealized Losses | (125) | (75) |
Corporate Debt Securities [Member] | ||
Schedule of available-for-sale securities and cost-method investments [Line Items] | ||
Less than 12 Months: Fair Value | 8,475 | 4,426 |
Less than 12 Months: Unrealized Losses | (25) | (74) |
12 Months or longer: Fair Value | 2,973 | 3,330 |
12 Months or longer: Unrealized Losses | (27) | (169) |
Total: Fair Value | 11,448 | 7,756 |
Total: Unrealized Losses | $ (52) | $ (243) |
Investment Securities - Schedul
Investment Securities - Schedule maturities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Available for Sale, Amortized Cost: | ||||||||
Due after one year through five years | $ 4,445 | |||||||
Due after five years through ten years | 27,989 | |||||||
Due after ten years | 8,322 | |||||||
Amortized Cost | 40,756 | $ 30,135 | ||||||
Held-to-Maturity, Amortized Cost: | ||||||||
Due after one year through five years | 4,474 | |||||||
Due after five years through ten years | 5,666 | |||||||
Due after ten years | 9,304 | |||||||
Collateralized mortgage obligations, fixed-rate | 9,063 | |||||||
Amortized Cost | 28,507 | $ 31,795 | $ 25,834 | $ 14,161 | 14,970 | $ 15,921 | $ 18,046 | $ 20,578 |
Equity Securities Amortized Cost | ||||||||
Equity securities Amortized Cost | 1,500 | 1,523 | ||||||
Total investment and equity securities Amortized Cost | 70,763 | 46,628 | ||||||
Available for Sale, Fair Value: | ||||||||
Due after one year through five years | 4,434 | |||||||
Due after five years through ten years | 28,069 | |||||||
Due after ten years | 8,310 | |||||||
Available-for-sale Securities, Fair value, Total | 40,813 | 32,998 | 27,397 | 33,704 | 30,018 | 31,722 | 20,325 | 22,225 |
Held-to-Maturity, Fair Value: | ||||||||
Due after one year through five years | 4,764 | |||||||
Due after five years through ten years | 5,712 | |||||||
Due after ten years | 9,259 | |||||||
Mortgage-backed securities: | ||||||||
Collateralized mortgage obligations, fixed-rate | 9,178 | |||||||
Held-to-maturity Securities, Fair Value, Total | 28,913 | 15,608 | ||||||
Equity Securities Fair Value | ||||||||
Total | 1,500 | $ 1,504 | $ 1,502 | $ 1,520 | 1,523 | $ 1,523 | $ 1,514 | $ 1,498 |
Total investment securities, Fair Value | 71,226 | 47,149 | ||||||
Mutual Fund [Member] | ||||||||
Equity Securities Amortized Cost | ||||||||
Due in one year or less | 500 | |||||||
Due after five years through ten years | 1,000 | |||||||
Equity securities Amortized Cost | 1,500 | 1,523 | ||||||
Equity Securities Fair Value | ||||||||
Due in one year or less | 500 | |||||||
Due after five years through ten years | 1,000 | |||||||
Total | $ 1,500 | $ 1,523 |
Loans Receivable and Related _3
Loans Receivable and Related Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | $ 913,824 | $ 1,039,001 | |||||||
Deferred loan fees and cost, net | 629 | 326 | |||||||
Allowance for loan losses | (11,472) | (12,433) | $ (10,095) | ||||||
Total loans receivable, net | 902,981 | $ 940,735 | $ 974,596 | $ 990,346 | 1,026,894 | $ 1,032,318 | $ 1,007,132 | $ 996,879 | |
Commercial and Industrial [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 115,246 | 116,584 | |||||||
Allowance for loan losses | (2,221) | (578) | (615) | ||||||
Residential Mortgage [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 198,710 | 242,090 | |||||||
Allowance for loan losses | (934) | (1,667) | (1,364) | ||||||
Construction and Development - Residential and Commercial Receivables [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 61,492 | 65,703 | |||||||
Allowance for loan losses | (428) | (465) | (523) | ||||||
Construction and Development - Land Receivable [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 2,204 | 3,110 | |||||||
Allowance for loan losses | (15) | (23) | (20) | ||||||
Construction And Development Receivable [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 63,696 | 68,813 | |||||||
Commercial Real Estate [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 426,915 | 495,398 | |||||||
Allowance for loan losses | (7,043) | (8,682) | (5,903) | ||||||
Commercial Farmland [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 10,297 | 7,517 | |||||||
Allowance for loan losses | (56) | (47) | (49) | ||||||
Commercial Multi Family Receivable [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 66,332 | 67,767 | |||||||
Allowance for loan losses | (450) | (511) | (369) | ||||||
Commercial - Other Receivable [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 10,954 | 10,142 | |||||||
Allowance for loan losses | (54) | (51) | (21) | ||||||
Commercial [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 629,744 | 697,408 | |||||||
Consumer - Home Equity Lines of Credit [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 13,491 | 17,128 | |||||||
Allowance for loan losses | (76) | (130) | (122) | ||||||
Consumer - Second Mortgages Receivable [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 5,884 | 10,711 | |||||||
Allowance for loan losses | (87) | (196) | (267) | ||||||
Consumer - Other Receivable [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 2,299 | 2,851 | |||||||
Allowance for loan losses | (20) | (29) | $ (23) | ||||||
Consumer Receivable [Member] | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | $ 21,674 | $ 30,690 |
Loans Receivable and Related _4
Loans Receivable and Related Allowance for Loan Losses (Narrative) (Detail) | 12 Months Ended | |
Sep. 30, 2021USD ($)Number | Sep. 30, 2020USD ($)Number | |
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | $ 913,824,000 | $ 1,039,001,000 |
Deferred loan fees, net | (629,000) | (326,000) |
Impaired loans with no specific allowance | 39,740,000 | 29,445,000 |
Non accrual loans interest income | 1,200,000 | 425,000 |
Loans past due 90 days or more and still accruing interest | 0 | 58,000 |
Non-accrual loans | $ 3,697,000 | $ 16,730,000 |
Number of loans | Number | 26 | 26 |
Financing receivable, collateral dependent TDR loan | $ 18,241,000 | $ 21,687,000 |
Valuation allowance on servicing rights | $ 0 | $ 0 |
Number of loans | Number | 8 | 43 |
Aggregate principal balance | $ 61,200,000 | $ 144,800,000 |
Mortgage Servicing Rights [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Servicing Asset | $ 13,100,000 | $ 20,100,000 |
Loan servicing rights, discount rate | 10.50% | 11.50% |
Two Commercial Real Estate Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with no specific allowance | $ 11,400,000 | |
Number of loans, deemed impaired with no specific allowance | Number | 2 | |
Loans returned to accrual status | $ 6,600,000 | |
Loans transferred to loans held-for-sale | $ 7,500,000 | |
Number of loans returned to accrual status | Number | 1 | |
Number of loans transferred to loans held for sale | Number | 1 | |
Write Down of Commercial Real Estate Loan Two [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, collateral dependent TDR loan | $ 5,700,000 | |
Addition of Commercial Farmland Loan One [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, collateral dependent TDR loan | 2,300,000 | |
Construction and Development - Residential and Commercial Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 61,492,000 | $ 65,703,000 |
Real estate through foreclosure | 185,000 | 175,000 |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 198,710,000 | 242,090,000 |
Impaired loans with no specific allowance | 2,594,000 | 3,388,000 |
Non-accrual loans | $ 879,000 | $ 2,036,000 |
Number of loans | Number | 16 | 17 |
Financing receivable, collateral dependent TDR loan | $ 3,180,000 | $ 3,435,000 |
Number of loans | Number | 2 | 5 |
Residential Mortgage [Member] | Fixed Rate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Sale of loan servicing rights at fair value | $ 21,900,000 | $ 5,200,000 |
Gain on sale of loans, net | 788,000 | 116,000 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 115,246,000 | $ 116,584,000 |
Impaired loans with no specific allowance | 630,000 | |
Non-accrual loans | $ 2,517,000 | |
Number of loans | Number | 1 | |
Financing receivable, collateral dependent TDR loan | $ 549,000 | |
Number of loans | Number | 10 | |
Commercial and Industrial [Member] | Paycheck Protection Program Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | $ 0 | $ 20,800,000 |
Deferred loan fees, net | $ 609,000 |
Loans Receivable and Related _5
Loans Receivable and Related Allowance for Loan Losses (1) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses, Beginning balance | $ 12,433 | $ 10,095 | $ 12,433 | $ 10,095 | ||||
Charge-offs | (12,313) | (8,396) | ||||||
Recoveries | 176 | 124 | ||||||
Provisions | $ 10,626 | 550 | $ 7,400 | $ 435 | $ 625 | 2,150 | 11,176 | 10,610 |
Allowance for credit losses, Ending Balance | 11,472 | 12,433 | 11,472 | 12,433 | ||||
Allowance for credit losses: Ending balance: individually evaluated for impairment | 1,544 | 308 | 1,544 | 308 | ||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 9,928 | 12,125 | 9,928 | 12,125 | ||||
Loans receivable | 913,824 | 1,039,001 | 913,824 | 1,039,001 | ||||
Loans receivable: Ending balance: individually evaluated for impairment | 2,905 | 30,222 | 2,905 | 30,222 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 910,919 | 1,008,779 | 910,919 | 1,008,779 | ||||
Commercial and Industrial [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses, Beginning balance | 578 | 615 | 578 | 615 | ||||
Charge-offs | (379) | |||||||
Recoveries | 2 | 2 | ||||||
Provisions | 2,020 | (39) | ||||||
Allowance for credit losses, Ending Balance | 2,221 | 578 | 2,221 | 578 | ||||
Allowance for credit losses: Ending balance: individually evaluated for impairment | 1,488 | 1,488 | ||||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 733 | 578 | 733 | 578 | ||||
Loans receivable | 115,246 | 116,584 | 115,246 | 116,584 | ||||
Loans receivable: Ending balance: individually evaluated for impairment | 2,517 | 2,517 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 112,729 | 116,584 | 112,729 | 116,584 | ||||
Residential Mortgage [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses, Beginning balance | 1,667 | 1,364 | 1,667 | 1,364 | ||||
Recoveries | 41 | 25 | ||||||
Provisions | (774) | 278 | ||||||
Allowance for credit losses, Ending Balance | 934 | 1,667 | 934 | 1,667 | ||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 934 | 1,667 | 934 | 1,667 | ||||
Loans receivable | 198,710 | 242,090 | 198,710 | 242,090 | ||||
Loans receivable: Ending balance: individually evaluated for impairment | 3,388 | 3,388 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 198,710 | 238,702 | 198,710 | 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 | 465 | 523 | ||||
Recoveries | 4 | |||||||
Provisions | (41) | (58) | ||||||
Allowance for credit losses, Ending Balance | 428 | 465 | 428 | 465 | ||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 428 | 465 | 428 | 465 | ||||
Loans receivable | 61,492 | 65,703 | 61,492 | 65,703 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 61,492 | 65,703 | 61,492 | 65,703 | ||||
Construction and Development - Land Receivable [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses, Beginning balance | 23 | 20 | 23 | 20 | ||||
Provisions | (8) | 3 | ||||||
Allowance for credit losses, Ending Balance | 15 | 23 | 15 | 23 | ||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 15 | 23 | 15 | 23 | ||||
Loans receivable | 2,204 | 3,110 | 2,204 | 3,110 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 2,204 | 3,110 | 2,204 | 3,110 | ||||
Commercial Real Estate [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses, Beginning balance | 8,682 | 5,903 | 8,682 | 5,903 | ||||
Charge-offs | 10,800 | (11,930) | (8,330) | |||||
Recoveries | 1 | 6 | ||||||
Provisions | 10,290 | 11,103 | ||||||
Allowance for credit losses, Ending Balance | 7,043 | 8,682 | 7,043 | 8,682 | ||||
Allowance for credit losses: Ending balance: individually evaluated for impairment | 18 | 227 | 18 | 227 | ||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 7,025 | 8,455 | 7,025 | 8,455 | ||||
Loans receivable | 426,915 | 495,398 | 426,915 | 495,398 | ||||
Loans receivable: Ending balance: individually evaluated for impairment | 286 | 25,926 | 286 | 25,926 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 426,629 | 469,472 | 426,629 | 469,472 | ||||
Commercial Farmland [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses, Beginning balance | 47 | 49 | 47 | 49 | ||||
Provisions | 9 | (2) | ||||||
Allowance for credit losses, Ending Balance | 56 | 47 | 56 | 47 | ||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 56 | 47 | 56 | 47 | ||||
Loans receivable | 10,297 | 7,517 | 10,297 | 7,517 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 10,297 | 7,517 | 10,297 | 7,517 | ||||
Commercial Multi Family Receivable [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses, Beginning balance | 511 | 369 | 511 | 369 | ||||
Provisions | (61) | 142 | ||||||
Allowance for credit losses, Ending Balance | 450 | 511 | 450 | 511 | ||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 450 | 511 | 450 | 511 | ||||
Loans receivable | 66,332 | 67,767 | 66,332 | 67,767 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 66,332 | 67,767 | 66,332 | 67,767 | ||||
Commercial - Other Receivable [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses, Beginning balance | 51 | 21 | 51 | 21 | ||||
Provisions | 3 | 30 | ||||||
Allowance for credit losses, Ending Balance | 54 | 51 | 54 | 51 | ||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 54 | 51 | 54 | 51 | ||||
Loans receivable | 10,954 | 10,142 | 10,954 | 10,142 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 10,954 | 10,142 | 10,954 | 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 | 130 | 122 | ||||
Charge-offs | (62) | |||||||
Recoveries | 17 | 1 | ||||||
Provisions | (71) | 69 | ||||||
Allowance for credit losses, Ending Balance | 76 | 130 | 76 | 130 | ||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 76 | 130 | 76 | 130 | ||||
Loans receivable | 13,491 | 17,128 | 13,491 | 17,128 | ||||
Loans receivable: Ending balance: individually evaluated for impairment | 26 | 26 | ||||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 13,491 | 17,102 | 13,491 | 17,102 | ||||
Consumer - Second Mortgages Receivable [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses, Beginning balance | 196 | 267 | 196 | 267 | ||||
Charge-offs | (3) | |||||||
Recoveries | 108 | 88 | ||||||
Provisions | (217) | (156) | ||||||
Allowance for credit losses, Ending Balance | 87 | 196 | 87 | 196 | ||||
Allowance for credit losses: Ending balance: individually evaluated for impairment | 38 | 81 | 38 | 81 | ||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 49 | 115 | 49 | 115 | ||||
Loans receivable | 5,884 | 10,711 | 5,884 | 10,711 | ||||
Loans receivable: Ending balance: individually evaluated for impairment | 102 | 882 | 102 | 882 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 5,782 | 9,829 | 5,782 | 9,829 | ||||
Consumer - Other Receivable [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses, Beginning balance | 29 | 23 | 29 | 23 | ||||
Charge-offs | (4) | (1) | ||||||
Recoveries | 2 | 2 | ||||||
Provisions | (7) | 5 | ||||||
Allowance for credit losses, Ending Balance | 20 | 29 | 20 | 29 | ||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | 20 | 29 | 20 | 29 | ||||
Loans receivable | 2,299 | 2,851 | 2,299 | 2,851 | ||||
Loans Receivable: Ending balance: collectively evaluated for impairment | 2,299 | 2,851 | 2,299 | 2,851 | ||||
Unallocated [Member] | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Allowance for credit losses, Beginning balance | $ 54 | $ 819 | 54 | 819 | ||||
Provisions | 34 | (765) | ||||||
Allowance for credit losses, Ending Balance | 88 | 54 | 88 | 54 | ||||
Allowance for credit losses: Ending balance: collectively evaluated for impairment | $ 88 | $ 54 | $ 88 | $ 54 |
Loans Receivable and Related _6
Loans Receivable and Related Allowance for Loan Losses (2) (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | $ 2,905 | $ 777 |
Impaired Loans With Specific Allowance, Related Allowance | 1,544 | 308 |
Impaired Loans With No Specific Allowance, Recorded Investment | 39,740 | 29,445 |
Total Impaired Loans Recorded Investment | 42,645 | 30,222 |
Total Impaired Loans Unpaid Principal Balance | 42,874 | 41,522 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | 2,517 | |
Impaired Loans With Specific Allowance, Related Allowance | 1,488 | |
Impaired Loans With No Specific Allowance, Recorded Investment | 630 | |
Total Impaired Loans Recorded Investment | 3,147 | |
Total Impaired Loans Unpaid Principal Balance | 3,584 | |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With No Specific Allowance, Recorded Investment | 2,594 | 3,388 |
Total Impaired Loans Recorded Investment | 2,594 | 3,388 |
Total Impaired Loans Unpaid Principal Balance | 2,766 | 3,598 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | 286 | 676 |
Impaired Loans With Specific Allowance, Related Allowance | 18 | 227 |
Impaired Loans With No Specific Allowance, Recorded Investment | 33,543 | 25,250 |
Total Impaired Loans Recorded Investment | 33,829 | 25,926 |
Total Impaired Loans Unpaid Principal Balance | 33,368 | 36,945 |
Commercial Farmland [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With No Specific Allowance, Recorded Investment | 2,254 | |
Total Impaired Loans Recorded Investment | 2,254 | |
Total Impaired Loans Unpaid Principal Balance | 2,254 | |
Consumer - Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With No Specific Allowance, Recorded Investment | 23 | 26 |
Total Impaired Loans Recorded Investment | 23 | 26 |
Total Impaired Loans Unpaid Principal Balance | 28 | 30 |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | 102 | 101 |
Impaired Loans With Specific Allowance, Related Allowance | 38 | 81 |
Impaired Loans With No Specific Allowance, Recorded Investment | 696 | 781 |
Total Impaired Loans Recorded Investment | 798 | 882 |
Total Impaired Loans Unpaid Principal Balance | $ 874 | $ 949 |
Loans Receivable and Related _7
Loans Receivable and Related Allowance for Loan Losses (3) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | $ 39,650 | $ 18,601 |
Interest Income Recognized on Impaired Loans | 731 | 327 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | 951 | |
Interest Income Recognized on Impaired Loans | 17 | |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | 3,305 | 3,506 |
Interest Income Recognized on Impaired Loans | 82 | 86 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | 32,812 | 14,209 |
Interest Income Recognized on Impaired Loans | 556 | 235 |
Commercial Farmland [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | 1,814 | |
Interest Income Recognized on Impaired Loans | 70 | |
Consumer - Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | 48 | 28 |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Impaired Loans | 720 | 858 |
Interest Income Recognized on Impaired Loans | $ 6 | $ 6 |
Loans Receivable and Related _8
Loans Receivable and Related Allowance for Loan Losses (4) (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | $ 913,824 | $ 1,039,001 |
Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 839,631 | 945,002 |
Special Mention [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 58,053 | 62,818 |
Substandard [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 16,140 | 31,181 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 115,246 | 116,584 |
Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 106,910 | 110,099 |
Commercial and Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 6,368 | |
Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 8,336 | 117 |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 198,710 | 242,090 |
Residential Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 195,658 | 238,610 |
Residential Mortgage [Member] | Substandard [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 3,052 | 3,480 |
Construction and Development - Residential and Commercial Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 61,492 | 65,703 |
Construction and Development - Residential and Commercial Receivables [Member] | Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 61,492 | 65,703 |
Construction and Development - Land Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 2,204 | 3,110 |
Construction and Development - Land Receivable [Member] | Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 2,204 | 3,110 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 426,915 | 495,398 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 376,721 | 422,143 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 48,705 | 46,892 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 1,489 | 26,363 |
Commercial Farmland [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 10,297 | 7,517 |
Commercial Farmland [Member] | Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 8,043 | 7,517 |
Commercial Farmland [Member] | Substandard [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 2,254 | |
Commercial Multi Family Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 66,332 | 67,767 |
Commercial Multi Family Receivable [Member] | Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 57,052 | 58,285 |
Commercial Multi Family Receivable [Member] | Special Mention [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 9,280 | 9,482 |
Commercial - Other Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 10,954 | 10,142 |
Commercial - Other Receivable [Member] | Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 10,954 | 10,142 |
Consumer - Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 13,491 | 17,128 |
Consumer - Home Equity Lines of Credit [Member] | Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 13,390 | 16,969 |
Consumer - Home Equity Lines of Credit [Member] | Substandard [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 101 | 159 |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 5,884 | 10,711 |
Consumer - Second Mortgages Receivable [Member] | Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 4,908 | 9,573 |
Consumer - Second Mortgages Receivable [Member] | Special Mention [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 68 | 76 |
Consumer - Second Mortgages Receivable [Member] | Substandard [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 908 | 1,062 |
Consumer - Other Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | 2,299 | 2,851 |
Consumer - Other Receivable [Member] | Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans and Leases, gross | $ 2,299 | $ 2,851 |
Loans Receivable and Related _9
Loans Receivable and Related Allowance for Loan Losses (5) (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | $ 3,697 | $ 16,730 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | 2,517 | |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | 879 | 2,036 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | 14,414 | |
Consumer - Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | 23 | 26 |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | $ 278 | $ 254 |
Loans Receivable and Related_10
Loans Receivable and Related Allowance for Loan Losses (6) (Detail) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Financing Receivable, Impaired [Line Items] | ||
Past Due | $ 1,935,000 | $ 3,213,000 |
Total Loans Receivable | 913,824,000 | 1,039,001,000 |
Accruing 90 Days or More Past Due | 0 | 58,000 |
Financial Asset, Not Past Due, Current [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 911,889,000 | 1,035,788,000 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 900,000 | 225,000 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 324,000 | 728,000 |
Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 711,000 | 2,260,000 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Loans Receivable | 115,246,000 | 116,584,000 |
Commercial and Industrial [Member] | Financial Asset, Not Past Due, Current [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 115,246,000 | 116,584,000 |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 1,648,000 | 2,467,000 |
Total Loans Receivable | 198,710,000 | 242,090,000 |
Residential Mortgage [Member] | Financial Asset, Not Past Due, Current [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 197,062,000 | 239,623,000 |
Residential Mortgage [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 796,000 | 68,000 |
Residential Mortgage [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 241,000 | 694,000 |
Residential Mortgage [Member] | Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 611,000 | 1,705,000 |
Construction and Development - Residential and Commercial Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Loans Receivable | 61,492,000 | 65,703,000 |
Construction and Development - Residential and Commercial Receivables [Member] | Financial Asset, Not Past Due, Current [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 61,492,000 | 65,703,000 |
Construction and Development - Land Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Loans Receivable | 2,204,000 | 3,110,000 |
Construction and Development - Land Receivable [Member] | Financial Asset, Not Past Due, Current [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 2,204,000 | 3,110,000 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 311,000 | |
Total Loans Receivable | 426,915,000 | 495,398,000 |
Commercial Real Estate [Member] | Financial Asset, Not Past Due, Current [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 426,915,000 | 495,087,000 |
Commercial Real Estate [Member] | Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 311,000 | |
Commercial Farmland [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Loans Receivable | 10,297,000 | 7,517,000 |
Commercial Farmland [Member] | Financial Asset, Not Past Due, Current [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 10,297,000 | 7,517,000 |
Commercial Multi Family Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Loans Receivable | 66,332,000 | 67,767,000 |
Commercial Multi Family Receivable [Member] | Financial Asset, Not Past Due, Current [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 66,332,000 | 67,767,000 |
Commercial - Other Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Loans Receivable | 10,954,000 | 10,142,000 |
Commercial - Other Receivable [Member] | Financial Asset, Not Past Due, Current [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 10,954,000 | 10,142,000 |
Consumer - Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 97,000 | 48,000 |
Total Loans Receivable | 13,491,000 | 17,128,000 |
Accruing 90 Days or More Past Due | 48,000 | |
Consumer - Home Equity Lines of Credit [Member] | Financial Asset, Not Past Due, Current [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 13,394,000 | 17,080,000 |
Consumer - Home Equity Lines of Credit [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 97,000 | |
Consumer - Home Equity Lines of Credit [Member] | Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 48,000 | |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 187,000 | 386,000 |
Total Loans Receivable | 5,884,000 | 10,711,000 |
Accruing 90 Days or More Past Due | 10,000 | |
Consumer - Second Mortgages Receivable [Member] | Financial Asset, Not Past Due, Current [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 5,697,000 | 10,325,000 |
Consumer - Second Mortgages Receivable [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 4,000 | 157,000 |
Consumer - Second Mortgages Receivable [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 83,000 | 33,000 |
Consumer - Second Mortgages Receivable [Member] | Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 100,000 | 196,000 |
Consumer - Other Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 3,000 | 1,000 |
Total Loans Receivable | 2,299,000 | 2,851,000 |
Consumer - Other Receivable [Member] | Financial Asset, Not Past Due, Current [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | 2,296,000 | 2,850,000 |
Consumer - Other Receivable [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | $ 3,000 | |
Consumer - Other Receivable [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Past Due | $ 1,000 |
Loans Receivable and Related_11
Loans Receivable and Related Allowance for Loan Losses (7) (Detail) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021USD ($)Number | Sep. 30, 2020USD ($)Number | |
Financing Receivable, Impaired [Line Items] | ||
Total Troubled Debt Restructurings, Number of Loans | Number | 26 | 26 |
Total Troubled Debt Restructurings, Recorded Investment | $ | $ 18,241 | $ 21,687 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Number of Loans | Number | 4 | 8 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Recorded Investment | $ | $ 640 | $ 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 | 16 | 17 |
Total Troubled Debt Restructurings, Recorded Investment | $ | $ 3,180 | $ 3,435 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Number of Loans | Number | 4 | 7 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Recorded Investment | $ | $ 640 | $ 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 | $ | $ 2,254 | |
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 | $ | $ 12,180 | $ 18,091 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Number of Loans | Number | 1 | |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Recorded Investment | $ | $ 6,652 | |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Troubled Debt Restructurings, Number of Loans | Number | 3 | 4 |
Total Troubled Debt Restructurings, Recorded Investment | $ | $ 78 | $ 161 |
Loans Receivable and Related_12
Loans Receivable and Related Allowance for Loan Losses (8) (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | $ 18,241 | $ 21,687 |
Commercial and Industrial [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 549 | |
Performing Financing Receivable [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 17,601 | 13,418 |
Performing Financing Receivable [Member] | Commercial and Industrial [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 549 | |
Nonperforming Financing Receivable [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 640 | 8,269 |
Residential Mortgage [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 3,180 | 3,435 |
Residential Mortgage [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 2,540 | 1,818 |
Residential Mortgage [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 640 | 1,617 |
Commercial Farmland [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 2,254 | |
Commercial Farmland [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 2,254 | |
Commercial Real Estate [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 12,180 | 18,091 |
Commercial Real Estate [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 12,180 | 11,439 |
Commercial Real Estate [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 6,652 | |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | 78 | 161 |
Consumer - Second Mortgages Receivable [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Recorded Investment | $ 78 | $ 161 |
Loans Receivable and Related_13
Loans Receivable and Related Allowance for Loan Losses (9) (Detail) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021USD ($)Number | Sep. 30, 2020USD ($)Number | |
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 2 | 3 |
Pre-Modifications Outstanding Recorded Investments | $ 2,803 | $ 11,137 |
Post-Modifications Outstanding Recorded Investments | $ 2,803 | $ 11,129 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 1 | |
Pre-Modifications Outstanding Recorded Investments | $ 549 | |
Post-Modifications Outstanding Recorded Investments | $ 549 | |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 1 | |
Pre-Modifications Outstanding Recorded Investments | $ 207 | |
Post-Modifications Outstanding Recorded Investments | $ 203 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 2 | |
Pre-Modifications Outstanding Recorded Investments | $ 10,930 | |
Post-Modifications Outstanding Recorded Investments | $ 10,926 | |
Commercial Farmland [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 1 | |
Pre-Modifications Outstanding Recorded Investments | $ 2,287 | |
Post-Modifications Outstanding Recorded Investments | $ 2,287 |
Loans Receivable and Related_14
Loans Receivable and Related Allowance for Loan Losses (10) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance at beginning of year | $ 13,733 | $ 12,478 |
New loans | 2,792 | 2,073 |
Repayments | (4,604) | (818) |
Balance at end of year | $ 11,921 | $ 13,733 |
Loans Receivable and Related_15
Loans Receivable and Related Allowance for Loan Losses (11) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance at beginning of year | $ 111 | $ 178 |
Amortization | (28) | (67) |
Balance at end of year | $ 83 | $ 111 |
Loans Receivable and Related_16
Loans Receivable and Related Allowance for Loan Losses (12) (Detail) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021USD ($)Number | Sep. 30, 2020USD ($)Number | |
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 8 | 43 |
Loan Modification Exposure | $ 61,234 | $ 144,785 |
Gross Loans | $ 913,824 | $ 1,039,001 |
Percentage of Gross Loans Modified | 6.70% | 13.94% |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 10 | |
Loan Modification Exposure | $ 5,547 | |
Gross Loans | $ 115,246 | $ 116,584 |
Percentage of Gross Loans Modified | 0.00% | 0.53% |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 2 | 5 |
Loan Modification Exposure | $ 667 | $ 1,288 |
Gross Loans | $ 198,710 | $ 242,090 |
Percentage of Gross Loans Modified | 0.07% | 0.12% |
Construction and Development - Residential and Commercial Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Gross Loans | $ 61,492 | $ 65,703 |
Percentage of Gross Loans Modified | 0.00% | 0.00% |
Construction and Development - Land Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Gross Loans | $ 2,204 | $ 3,110 |
Percentage of Gross Loans Modified | 0.00% | 0.00% |
Construction And Development Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Gross Loans | $ 63,696 | $ 68,813 |
Percentage of Gross Loans Modified | 0.00% | 0.00% |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 6 | 21 |
Loan Modification Exposure | $ 60,567 | $ 131,348 |
Gross Loans | $ 426,915 | $ 495,398 |
Percentage of Gross Loans Modified | 6.63% | 12.65% |
Commercial Farmland [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 1 | |
Loan Modification Exposure | $ 2,288 | |
Gross Loans | $ 10,297 | $ 7,517 |
Percentage of Gross Loans Modified | 0.00% | 0.22% |
Commercial Multi Family Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 2 | |
Loan Modification Exposure | $ 3,718 | |
Gross Loans | $ 66,332 | $ 67,767 |
Percentage of Gross Loans Modified | 0.00% | 0.36% |
Commercial - Other Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Gross Loans | $ 10,954 | $ 10,142 |
Percentage of Gross Loans Modified | 0.00% | 0.00% |
Commercial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 6 | 34 |
Loan Modification Exposure | $ 60,567 | $ 142,901 |
Gross Loans | $ 629,744 | $ 697,408 |
Percentage of Gross Loans Modified | 6.63% | 13.75% |
Consumer - Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 3 | |
Loan Modification Exposure | $ 579 | |
Gross Loans | $ 13,491 | $ 17,128 |
Percentage of Gross Loans Modified | 0.00% | 0.06% |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 1 | |
Loan Modification Exposure | $ 17 | |
Gross Loans | $ 5,884 | $ 10,711 |
Percentage of Gross Loans Modified | 0.00% | 0.00% |
Consumer - Other Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Gross Loans | $ 2,299 | $ 2,851 |
Percentage of Gross Loans Modified | 0.00% | 0.00% |
Consumer Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | Number | 4 | |
Loan Modification Exposure | $ 596 | |
Gross Loans | $ 21,674 | $ 30,690 |
Percentage of Gross Loans Modified | 0.00% | 0.06% |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | $ 18,607 | $ 18,474 | ||||||
Accumulated depreciation | (12,830) | (12,200) | ||||||
Property and equipment, net | 5,777 | $ 5,902 | $ 6,040 | $ 6,154 | 6,274 | $ 6,355 | $ 6,476 | $ 6,594 |
Land [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | 706 | 707 | ||||||
Building and improvements [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | $ 11,992 | 11,909 | ||||||
Building and improvements [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, estimated useful life (years) | 10 years | |||||||
Building and improvements [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, estimated useful life (years) | 39 years | |||||||
Construction in process [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | $ 5 | 6 | ||||||
Furniture, fixtures and equipment [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | $ 5,904 | $ 5,852 | ||||||
Furniture, fixtures and equipment [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, estimated useful life (years) | 3 years | |||||||
Furniture, fixtures and equipment [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, estimated useful life (years) | 7 years |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Property Plant And Equipment Net [Abstract] | ||
Depreciation | $ 630 | $ 745 |
Deposits (Detail)
Deposits (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Deposits: | ||||||||
Savings | $ 50,582 | $ 45,072 | ||||||
Money market accounts | 385,480 | 277,711 | ||||||
Interest bearing demand | 336,645 | 303,682 | ||||||
Non-interest bearing demand | 53,849 | 50,422 | ||||||
Total deposits before certificates of deposit | 826,556 | 676,887 | ||||||
Certificates of deposit | 111,603 | 214,019 | ||||||
Total Deposits | $ 938,159 | $ 907,704 | $ 912,213 | $ 900,465 | $ 890,906 | $ 884,444 | $ 915,900 | $ 943,819 |
Percentage of savings | 5.39% | 5.06% | ||||||
Percentage of money market accounts | 41.09% | 31.17% | ||||||
Percentage of interest bearing demand | 35.88% | 34.09% | ||||||
Percentage of non-interest bearing demand | 5.74% | 5.66% | ||||||
Percentage of total deposits before certificates of deposit | 88.10% | 75.98% | ||||||
Percentage of certificates of deposit | 11.90% | 24.02% | ||||||
Percentage of total deposits | 100.00% | 100.00% |
Deposits (Narrative) (Detail)
Deposits (Narrative) (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Deposits: | ||
Certificates of deposit of $250,000 and greater | $ 16.5 | $ 48.2 |
Brokered deposits | 6.1 | 31.1 |
Related party deposit liabilities | $ 43.2 | $ 35.9 |
Deposits 1 (Detail)
Deposits 1 (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Deposits: | ||
Savings accounts | $ 59 | $ 51 |
Money market accounts | 1,726 | 4,010 |
Interest bearing demand | 2,681 | 3,523 |
Certificates of deposit | 2,282 | 5,262 |
Total deposits | $ 6,748 | $ 12,846 |
Deposits (2) (Detail)
Deposits (2) (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Deposits: | |
2022 | $ 58,172 |
2023 | 21,234 |
2024 | 17,928 |
2025 | 6,319 |
2026 | 7,160 |
Thereafter | 790 |
Total | $ 111,603 |
Borrowings (Narrative) (Detail)
Borrowings (Narrative) (Detail) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||
Secured borrowing | $ 4,225,000 | $ 4,225,000 | $ 4,225,000 | $ 4,250,000 | |
Line of Credit [Member] | Federal Home Loan Bank of Pittsburgh [Member] | |||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||||
Maximum borrowing capacity of line of credit facility | $ 150,000,000 | ||||
Interest rate under line of credit facility | 0.29% | 0.39% | |||
Long-term line of credit outstanding | $ 0 | $ 0 | |||
Outstanding long-term FHLB advances | 90,000,000 | ||||
Potential FHLB advances available | 376,600,000 | ||||
Securities sold under agreements | $ 0 | $ 0 |
Borrowings (Detail)
Borrowings (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Long-Term Borrowings, Amount | ||
2021 | $ 110,000 | |
2022 | $ 90,000 | 20,000 |
Total FHLB Advances | $ 90,000 | $ 130,000 |
Long-Term Borrowings, Weighted Average Rate | ||
2021 | 0.76% | |
2022 | 0.76% | 2.29% |
Total FHLB Advances | 0.76% | 0.99% |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative [Line Items] | ||
Minimum collateral posting thresholds with derivative counterparties | $ 8,300,000 | $ 12,900,000 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Estimated interest expense | $ 182,000 |
Derivatives (Detail)
Derivatives (Detail) - Interest Rate Swap Agreements [Member] - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Notional Amount, Asset Derivatives | $ 40,000 | |
Fair Value | 14 | |
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Notional Amount, Liability Derivatives | 30,000 | $ 90,000 |
Fair Value | 47 | 1,291 |
Derivatives Not Designated As Hedging Instrument [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Notional Amount, Asset Derivatives | 44,748 | 45,162 |
Fair Value | 4,671 | 8,752 |
Derivatives Not Designated As Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Notional Amount, Liability Derivatives | 44,748 | 45,162 |
Fair Value | $ 4,673 | $ 8,756 |
Derivatives - Schedule of Offse
Derivatives - Schedule of Offsetting of Derivative Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 4,685 | $ 8,752 |
Net Amounts of Assets presented in the Statement of Financial Condition | 4,685 | 8,752 |
Gross Amounts Not Offset in the Statements of Financial Condition, Net Amount | 4,685 | 8,752 |
Offsetting of Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 4,720 | 10,047 |
Net Amounts of Liabilities presented in the Statement of Financial Condition | 4,720 | 10,047 |
Gross Amounts Not Offset in the Statements of Financial Condition, Financial Instruments | 221 | 1,498 |
Gross Amounts Not Offset in the Statements of Financial Condition, Cash Collateral Posted | 8,257 | 12,857 |
Gross Amounts Not Offset in the Statements of Financial Condition, Net Amount | $ (3,758) | $ (4,308) |
Derivatives - Statement of Oper
Derivatives - Statement of Operations Relating to The Cash Flow Derivative Instrument (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative | $ 255 | $ (1,088) |
Amount of Gain (Loss) Reclassified from OCI to Interest Expense | (995) | (437) |
Interest Rate Swap Agreements [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative | 255 | (1,088) |
Amount of Gain (Loss) Reclassified from OCI to Interest Expense | $ (995) | $ (437) |
Derivatives - Schedule of Effec
Derivatives - Schedule of Effects of Derivative Instruments on Consolidated Statements of Operations (Detail) - Derivatives Not Designated As Hedging Instrument [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on derivatives | $ 2 | $ (6) |
Interest Rate Swap Agreements [Member] | Other Income [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on derivatives | $ 2 | $ (6) |
Fair Value Measurements (Detail
Fair Value Measurements (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||||||||
Investment securities available-for-sale, at fair value | $ 40,813 | $ 32,998 | $ 27,397 | $ 33,704 | $ 30,018 | $ 31,722 | $ 20,325 | $ 22,225 |
Equity investment securities, at fair value | 1,500 | $ 1,504 | $ 1,502 | $ 1,520 | 1,523 | $ 1,523 | $ 1,514 | $ 1,498 |
Derivative instruments | 4,685 | 8,752 | ||||||
Liabilities | ||||||||
Derivative instruments | 4,720 | 10,047 | ||||||
U. S. Government Agencies [Member] | ||||||||
Assets | ||||||||
Investment securities available-for-sale, at fair value | 4,993 | 5,040 | ||||||
State And Municipal Obligations [Member] | ||||||||
Assets | ||||||||
Investment securities available-for-sale, at fair value | 2,765 | 3,105 | ||||||
Single Issuer Trust Preferred Security [Member] | ||||||||
Assets | ||||||||
Investment securities available-for-sale, at fair value | 875 | 925 | ||||||
Corporate Debt Securities [Member] | ||||||||
Assets | ||||||||
Investment securities available-for-sale, at fair value | 32,180 | 20,948 | ||||||
Mutual Fund [Member] | ||||||||
Assets | ||||||||
Equity investment securities, at fair value | 1,500 | 1,523 | ||||||
Fair Value, Measurements, Recurring [Member] | ||||||||
Assets | ||||||||
Investment securities available-for-sale, at fair value | 40,813 | 30,018 | ||||||
Equity investment securities, at fair value | 1,500 | 1,523 | ||||||
Derivative instruments | 4,685 | 8,752 | ||||||
Liabilities | ||||||||
Derivative instruments | 4,720 | 10,047 | ||||||
Fair Value, Measurements, Recurring [Member] | U. S. Government Agencies [Member] | ||||||||
Assets | ||||||||
Investment securities available-for-sale, at fair value | 4,993 | 5,040 | ||||||
Fair Value, Measurements, Recurring [Member] | State And Municipal Obligations [Member] | ||||||||
Assets | ||||||||
Investment securities available-for-sale, at fair value | 2,765 | 3,105 | ||||||
Fair Value, Measurements, Recurring [Member] | Single Issuer Trust Preferred Security [Member] | ||||||||
Assets | ||||||||
Investment securities available-for-sale, at fair value | 875 | 925 | ||||||
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||||||||
Assets | ||||||||
Investment securities available-for-sale, at fair value | 32,180 | 20,948 | ||||||
Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | ||||||||
Assets | ||||||||
Equity investment securities, at fair value | 1,500 | 1,523 | ||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||
Assets | ||||||||
Equity investment securities, at fair value | 1,000 | 1,023 | ||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | ||||||||
Assets | ||||||||
Equity investment securities, at fair value | 1,000 | 1,023 | ||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||
Assets | ||||||||
Investment securities available-for-sale, at fair value | 40,813 | 30,018 | ||||||
Derivative instruments | 4,685 | 8,752 | ||||||
Liabilities | ||||||||
Derivative instruments | 4,720 | 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 | 4,993 | 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 | 2,765 | 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 | 875 | 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 | 32,180 | 20,948 | ||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Assets | ||||||||
Equity investment securities, at fair value | 500 | 500 | ||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mutual Fund [Member] | ||||||||
Assets | ||||||||
Equity investment securities, at fair value | $ 500 | $ 500 |
Fair Value Measurements (1) (De
Fair Value Measurements (1) (Detail) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance | $ 500 | $ 250 |
Payments received | 0 | 0 |
Included in earnings | 0 | 0 |
Included in other comprehensive income | 0 | 0 |
Purchases | 0 | 250 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 500 | $ 500 |
Fair Value Measurements (2) (De
Fair Value Measurements (2) (Detail) $ in Thousands | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
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 | 0.064 | 0.065 |
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 | 0.064 | 0.065 |
Impaired Loans, Measurement Input | 0.08 | 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 | 0.040 | 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 | 0.12 | 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 | $ 38,837 | $ 13,716 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring basis | 18,900 | |
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 | 19,937 | 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 | 4,961 | 5,796 |
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [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 | 4,961 | 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 | 33,876 | 7,920 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Net [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring basis | 18,900 | |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Net [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 | $ 14,976 | $ 7,920 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021USD ($)Number | Sep. 30, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans with aggregate balance for four loans | $ 35,400 | $ 8,200 |
Impaired Loans with specific loan loss allowance | 1,544 | 308 |
Impaired Loans With No Specific Allowance, Recorded Investment | $ 39,740 | $ 29,445 |
Four Commercial Real Estate Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of loans classified as loans held for sale | Number | 4 | |
Impaired Loans With No Specific Allowance, Recorded Investment | $ 32,500 | |
Three Commercial Real Estate Loans [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of loans classified as loans held for sale | Number | 3 | |
Impaired Loans With No Specific Allowance, Recorded Investment | $ 18,900 | |
Three Commercial Real Estate Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans With No Specific Allowance, Recorded Investment | $ 13,600 |
Fair Value Measurements (3) (De
Fair Value Measurements (3) (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||||||||
Investment securities available-for-sale | $ 40,813 | $ 32,998 | $ 27,397 | $ 33,704 | $ 30,018 | $ 31,722 | $ 20,325 | $ 22,225 |
Investment securities held-to-maturity | 28,913 | 15,608 | ||||||
Equity securities | 1,500 | $ 1,504 | $ 1,502 | $ 1,520 | 1,523 | $ 1,523 | $ 1,514 | $ 1,498 |
Derivatives (included in Other Assets) | 4,685 | 8,752 | ||||||
Financial liabilities: | ||||||||
Derivatives (included in Other Liabilities) | 4,720 | 10,047 | ||||||
Carrying Amount [Member] | ||||||||
Financial assets: | ||||||||
Cash and cash equivalents | 136,590 | 61,439 | ||||||
Investment securities available-for-sale | 40,813 | 30,018 | ||||||
Investment securities held-to-maturity | 28,507 | 14,970 | ||||||
Equity securities | 1,500 | 1,523 | ||||||
Loans receivable, net (including impaired ) | 902,981 | 1,026,984 | ||||||
Loans Held For Sale | 33,199 | |||||||
Accrued interest receivable | 3,512 | 3,677 | ||||||
Restricted stock | 7,776 | 9,622 | ||||||
Mortgage servicing rights (included in Other Assets) | 83 | 111 | ||||||
Derivatives (included in Other Assets) | 4,685 | 8,752 | ||||||
Financial liabilities: | ||||||||
Savings accounts | 50,582 | 45,072 | ||||||
Checking and NOW accounts | 390,494 | 354,104 | ||||||
Money market accounts | 385,480 | 277,711 | ||||||
Certificates of deposit | 111,603 | 214,019 | ||||||
Borrowings (excluding sub debt) | 90,000 | 134,225 | ||||||
Subordinated debt | 24,934 | 24,776 | ||||||
Derivatives (included in Other Liabilities) | 4,720 | 10,047 | ||||||
Accrued interest payable | 572 | 728 | ||||||
Fair Value [Member] | ||||||||
Financial assets: | ||||||||
Cash and cash equivalents | 136,590 | 61,439 | ||||||
Investment securities available-for-sale | 40,813 | 30,018 | ||||||
Investment securities held-to-maturity | 28,913 | 15,608 | ||||||
Equity securities | 1,500 | 1,523 | ||||||
Loans receivable, net (including impaired ) | 900,357 | 1,035,941 | ||||||
Loans Held For Sale | 33,199 | |||||||
Accrued interest receivable | 3,512 | 3,677 | ||||||
Restricted stock | 7,776 | 9,622 | ||||||
Mortgage servicing rights (included in Other Assets) | 83 | 111 | ||||||
Derivatives (included in Other Assets) | 4,685 | 8,752 | ||||||
Financial liabilities: | ||||||||
Savings accounts | 50,582 | 45,072 | ||||||
Checking and NOW accounts | 390,494 | 354,104 | ||||||
Money market accounts | 385,480 | 277,711 | ||||||
Certificates of deposit | 113,323 | 217,212 | ||||||
Borrowings (excluding sub debt) | 90,215 | 135,101 | ||||||
Subordinated debt | 25,027 | 25,030 | ||||||
Derivatives (included in Other Liabilities) | 4,720 | 10,047 | ||||||
Accrued interest payable | 572 | 728 | ||||||
Fair Value, Inputs, Level 1 [Member] | Fair Value [Member] | ||||||||
Financial assets: | ||||||||
Cash and cash equivalents | 136,590 | 61,439 | ||||||
Equity securities | 1,000 | 1,023 | ||||||
Loans Held For Sale | 19,583 | |||||||
Fair Value, Inputs, Level 2 [Member] | Fair Value [Member] | ||||||||
Financial assets: | ||||||||
Investment securities available-for-sale | 40,813 | 30,018 | ||||||
Investment securities held-to-maturity | 28,913 | 15,608 | ||||||
Accrued interest receivable | 3,512 | 3,677 | ||||||
Restricted stock | 7,776 | 9,622 | ||||||
Mortgage servicing rights (included in Other Assets) | 83 | 111 | ||||||
Derivatives (included in Other Assets) | 4,685 | 8,752 | ||||||
Financial liabilities: | ||||||||
Savings accounts | 50,582 | 45,072 | ||||||
Checking and NOW accounts | 390,494 | 354,104 | ||||||
Money market accounts | 385,480 | 277,711 | ||||||
Certificates of deposit | 113,323 | 217,212 | ||||||
Borrowings (excluding sub debt) | 90,215 | 135,101 | ||||||
Subordinated debt | 25,027 | 25,030 | ||||||
Derivatives (included in Other Liabilities) | 4,720 | 10,047 | ||||||
Accrued interest payable | 572 | 728 | ||||||
Fair Value, Inputs, Level 3 [Member] | Fair Value [Member] | ||||||||
Financial assets: | ||||||||
Equity securities | 500 | 500 | ||||||
Loans receivable, net (including impaired ) | 900,357 | $ 1,035,941 | ||||||
Loans Held For Sale | $ 13,616 |
Income Taxes - Schedule of defe
Income Taxes - Schedule of deferred income taxes (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
DTAs: | ||
Allowance for loan losses | $ 2,807 | $ 3,053 |
Non-accrual interest | 276 | 29 |
Supplement Employer Retirement Plan | 173 | 193 |
Federal and State net operating loss | 155 | 6 |
Unrealized loss on investments available-for-sale | 296 | |
Depreciation | 53 | 36 |
Lease liability | 448 | 656 |
Other | 113 | 89 |
Total DTAs | 4,025 | 4,358 |
Total DTAs, Net of Valuation Allowance | 4,025 | 4,358 |
DTLs: | ||
Unrealized gain on investments available-for-sale | (3) | |
Mortgage servicing rights | (20) | (27) |
Right of use asset | (440) | (648) |
Other | (32) | (3) |
Total DTLs | (495) | (678) |
DTAs, Net | $ 3,530 | $ 3,680 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) | Sep. 30, 2021 | Sep. 30, 2020 |
Federal Tax Authority [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforwards, Net | $ 563,000 | $ 0 |
State Tax Authority [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforwards, Net | $ 36,500 | $ 12,000 |
Income Taxes - Schedule of inco
Income Taxes - Schedule of income tax benefit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Federal: | ||||||||||
Current | $ (62) | $ 394 | ||||||||
Deferred | (112) | (495) | ||||||||
Federal income tax expense (benefit), Total | (174) | (101) | ||||||||
State: | ||||||||||
Current | 271 | |||||||||
Deferred | (38) | (206) | ||||||||
State income tax expense (benefit), Total | (38) | 65 | ||||||||
Total income tax benefit | $ (2,116) | $ 489 | $ 682 | $ 733 | $ (1,043) | $ 447 | $ 586 | $ (26) | $ (212) | $ (36) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||||||||
Tax at statutory rate | $ (64) | $ 128 | ||||||||
Adjustments resulting from: | ||||||||||
State tax, net of federal benefit | (30) | 51 | ||||||||
Tax-exempt interest | (26) | (59) | ||||||||
Earnings on bank-owned life insurance | (138) | (107) | ||||||||
Other | 46 | (49) | ||||||||
Total income tax benefit | $ (2,116) | $ 489 | $ 682 | $ 733 | $ (1,043) | $ 447 | $ 586 | $ (26) | $ (212) | $ (36) |
Tax at statutory rate (in percentage) | 21.00% | 21.00% | ||||||||
Adjustments resulting from: | ||||||||||
State tax, net of federal benefit (in percentage) | (9.80%) | 8.50% | ||||||||
Tax-exempt interest (in percentage) | (8.60%) | (9.70%) | ||||||||
Earnings on bank-owned life insurance (in percentage) | (45.3) | (17.6) | ||||||||
Other (in percentage) | 15.10% | (8.10%) | ||||||||
Total (in percentage) | (69.60%) | (5.90%) |
Leases (Narrative) (Detail)
Leases (Narrative) (Detail) $ in Thousands | 12 Months Ended | ||||||||
Sep. 30, 2021USD ($)FinancialCenterOfficeLease | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Oct. 01, 2019USD ($) | |
Lessee Lease Description [Line Items] | |||||||||
Operating lease right-of-use-assets | $ | $ 1,796 | $ 2,168 | $ 2,322 | $ 2,479 | $ 2,638 | $ 2,799 | $ 2,959 | $ 3,119 | |
Operating lease liabilities | $ | $ 1,830 | $ 2,204 | $ 2,357 | $ 2,512 | $ 2,671 | $ 2,824 | $ 2,976 | $ 3,128 | |
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 | 1 | ||||||||
Representative Office | Short-term Leases [Member] | |||||||||
Lessee Lease Description [Line Items] | |||||||||
Number of offices | 2 | ||||||||
Administrative Office | |||||||||
Lessee Lease Description [Line Items] | |||||||||
Number of office leases included in option to extend | 1 | ||||||||
Glen Mills, Pennsylvania | |||||||||
Lessee Lease Description [Line Items] | |||||||||
Number of financial centers | FinancialCenter | 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 | ||||||||
Quakertown, Pennsylvania | Administrative 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 | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 661 | $ 698 |
Short-term lease cost | 95 | 104 |
Total | $ 756 | $ 802 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information of Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Supplemental balance sheet information | ||||||||
Operating lease right-of-use assets | $ 1,796 | $ 2,638 | $ 2,168 | $ 2,322 | $ 2,479 | $ 2,799 | $ 2,959 | $ 3,119 |
Operating lease liabilities | $ 1,830 | $ 2,671 | $ 2,204 | $ 2,357 | $ 2,512 | $ 2,824 | $ 2,976 | $ 3,128 |
Weighted average remaining lease term | 4 years 6 months | 5 years 4 months 24 days | ||||||
Weighted average discount rate | 1.99% | 1.99% | ||||||
Supplemental cash flow information | ||||||||
Operating cash flows from operating leases | $ 893 | $ 667 | ||||||
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 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||||||||
2022 | $ 449 | |||||||
2023 | 431 | |||||||
2024 | 431 | |||||||
2025 | 432 | |||||||
2026 | 153 | |||||||
Thereafter | 51 | |||||||
Total lease payments | 1,947 | |||||||
Less: imputed interest | (117) | |||||||
Total | $ 1,830 | $ 2,204 | $ 2,357 | $ 2,512 | $ 2,671 | $ 2,824 | $ 2,976 | $ 3,128 |
Leases - Schedule of Operating
Leases - Schedule of Operating Future Minimum Rent Receivables (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 95 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Total Payments Receivable | $ 95 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Detail) - USD ($) $ in Millions | Sep. 30, 2021 | Sep. 30, 2020 |
Letter of Credit [Member] | ||
Commitments And Contingencies [Line Items] | ||
Uncollateralized letters of credit | $ 9 | $ 9.1 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of financial instruments outstanding (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Fair Value Concentration Of Risk Financial Statement Captions [Line Items] | ||
Commitments | $ 168,700 | $ 148,788 |
Future loan commitments [Member] | ||
Fair Value Concentration Of Risk Financial Statement Captions [Line Items] | ||
Commitments | 32,889 | 7,687 |
Undisbursed construction loans [Member] | ||
Fair Value Concentration Of Risk Financial Statement Captions [Line Items] | ||
Commitments | 12,672 | 24,551 |
Undisbursed home equity lines of credit [Member] | ||
Fair Value Concentration Of Risk Financial Statement Captions [Line Items] | ||
Commitments | 25,722 | 24,751 |
Undisbursed Commercial Lines Of Credit [Member] | ||
Fair Value Concentration Of Risk Financial Statement Captions [Line Items] | ||
Commitments | 19,901 | 22,918 |
Undisbursed Commercial Unsecured Lines Of Credit [Member] | ||
Fair Value Concentration Of Risk Financial Statement Captions [Line Items] | ||
Commitments | 66,941 | 58,445 |
Overdraft Protection Lines [Member] | ||
Fair Value Concentration Of Risk Financial Statement Captions [Line Items] | ||
Commitments | 1,549 | 1,362 |
Standby Letters Of Credit [Member] | ||
Fair Value Concentration Of Risk Financial Statement Captions [Line Items] | ||
Commitments | $ 9,026 | $ 9,074 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Detail) | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021shares | Sep. 30, 2020$ / sharesshares | Mar. 14, 2019shares | Jan. 01, 2019 | Jan. 01, 2016 | Jan. 01, 2015 | Dec. 31, 2014 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Percentage of repurchase of outstanding common stock as condition warrant | 2.50% | ||||||
Stock repurchased during period, shares | 0 | 177,653 | |||||
Average cost per share | $ / shares | $ 14.23 | ||||||
Malvern Federal Savings Bank [Member] | |||||||
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 | 17.32 | 16.64 | 10.5 | ||||
Capital conservation buffer percentage of risk-weighted assets | 0.625% | ||||||
Maximum [Member] | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Stock repurchase plan, number of shares authorized | 194,516 |
Regulatory Matters (Detail)
Regulatory Matters (Detail) $ in Thousands | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jan. 01, 2016 | Jan. 01, 2015 |
Total Capital (to risk-weighted assets): Actual Amount | $ 169,072 | $ 168,090 | ||
Parent Company [Member] | ||||
Capital (to adjusted tangible assets): Actual Amount | 142,132 | 141,681 | ||
Common equity Tier 1(to risk-weighted assets): Actual Amount | 142,132 | 141,681 | ||
Tier 1 Capital (to risk-weighted assets): Actual Amount | 142,132 | 141,681 | ||
Total Capital (to risk-weighted assets): Actual Amount | $ 178,620 | $ 178,972 | ||
Capital (to adjusted tangible assets): Actual Ratio | 11.84 | 11.63 | ||
Common equity Tier 1(to risk-weighted assets): Actual Ratio | 14.53 | 14 | ||
Tier 1 Capital (to risk-weighted assets): Actual Ratio | 14.53 | 14 | ||
Total Capital (to risk-weighted assets): Actual Ratio | 18.26 | 17.69 | ||
Capital (to adjusted tangible assets): For Capital Adequacy Purposes Amount | $ 48,020 | $ 48,743 | ||
Common Equity Tier 1 Capital (to risk weighted assets) | 44,024 | 45,528 | ||
Tier 1 Capital (to risk-weighted assets) | 58,699 | 60,704 | ||
Total Capital (to risk weighted assets) | $ 78,265 | $ 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 | $ 157,518 | $ 155,575 | ||
Common equity Tier 1(to risk-weighted assets): Actual Amount | 157,518 | 155,575 | ||
Tier 1 Capital (to risk-weighted assets): Actual Amount | 157,518 | 155,575 | ||
Total Capital (to risk-weighted assets): Actual Amount | $ 169,072 | $ 168,090 | ||
Capital (to adjusted tangible assets): Actual Ratio | 13.14 | 12.78 | ||
Common equity Tier 1(to risk-weighted assets): Actual Ratio | 16.13 | 15.40 | ||
Tier 1 Capital (to risk-weighted assets): Actual Ratio | 16.13 | 15.40 | ||
Total Capital (to risk-weighted assets): Actual Ratio | 17.32 | 16.64 | 10.5 | |
Capital (to adjusted tangible assets): For Capital Adequacy Purposes Amount | $ 47,946 | $ 48,685 | ||
Common Equity Tier 1 Capital (to risk weighted assets) | 43,934 | 45,459 | ||
Tier 1 Capital (to risk-weighted assets) | 58,579 | 60,612 | ||
Total Capital (to risk weighted assets) | $ 78,105 | $ 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 | $ 59,933 | $ 60,856 | ||
Common Equity Tier 1 Capital (to risk weighted assets) | 63,460 | 65,663 | ||
Tier 1 Capital (to risk-weighted assets) | 78,105 | 80,816 | ||
Total Capital (to risk weighted assets) | $ 97,632 | $ 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 |
Regulatory Matters (1) (Detail)
Regulatory Matters (1) (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Regulatory Matters Disclosure [Abstract] | ||
Bank GAAP equity | $ 157,554 | $ 154,487 |
Net unrealized loss on securities available for sale, net of income taxes | (45) | 93 |
Net unrealized loss on derivatives, net of income taxes | 9 | 995 |
Tangible Capital, Core Capital and Tier 1 Capital | 157,518 | 155,575 |
Allowance for loan losses | 11,554 | 12,515 |
Total Risk-Based Capital | $ 169,072 | $ 168,090 |
Comprehensive Income (Detail)
Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Equity [Abstract] | ||
Net unrealized holding gains (losses) on available-for- sale securities | $ 57 | $ (118) |
Tax effect | (12) | 25 |
Net of tax amount | 45 | (93) |
Fair value adjustment on derivatives | (11) | (1,260) |
Tax effect | 2 | 265 |
Net of tax amount | (9) | (995) |
Total accumulated other comprehensive income (loss) | $ 36 | $ (1,088) |
Comprehensive Income (1) (Detai
Comprehensive Income (1) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Equity [Abstract] | |||
Unrealized holding gains on available-for-sale securities | $ 950 | $ 320 | |
Reclassification adjustment for net gains arising during the period | [1] | 779 | 330 |
Adjustment for loss recorded on replacement of derivative | (9) | 31 | |
Amortization of unrealized holding losses on securities available-for-sale transferred to held-to-maturity | [2] | 4 | 3 |
Fair value adjustment on derivatives | 1,258 | (681) | |
Other comprehensive income (loss) before taxes | 1,424 | (657) | |
Tax effect | (300) | 138 | |
Total other comprehensive income (loss) | $ 1,124 | $ (519) | |
[1] | Amounts are included in net gains on sale and call of available-for-sale securities 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 ($) | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted shares | 7,000 | 7,000 |
Share-based compensation | $ 223,000 | $ 253,000 |
Granted shares | 12,363 | 22,211 |
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 | 299,288 | |
Description of vesting right | Restricted stock and option awards granted during fiscal year 2021 vest in 20 percent increments beginning on the one- year anniversary of the grant date | |
Granted shares | 7,000 | 7,000 |
Forfeited shares | 0 | 0 |
Share-based compensation | $ 35,000 | $ 29,000 |
Compensation cost not yet recognized | $ 92,000 | |
Weighted average period | 3 years 3 months 21 days | |
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] | ||
Granted shares | 12,363 | 23,821 |
Forfeited shares | 0 | 1,610 |
Compensation cost not yet recognized | $ 367,000 | |
Weighted average period | 3 years 3 months 7 days | |
Malvern Bancorp, Inc. 2014 Long Term Incentive Compensation Plan (the 2014 Plan) [Member] | Restricted and Unrestricted Stock [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation | $ 260,000 | $ 224,000 |
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 (Detail) - Stock Option [Member] - Malvern Bancorp, Inc. 2014 Long Term Incentive Compensation Plan (the 2014 Plan) [Member] - $ / shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average fair value of awards | $ 6.06 | $ 4.72 |
Risk-free rate | 1.25% | 1.22% |
Volatility | 29.72% | 19.86% |
Expected life | 6 years 6 months | 6 years 6 months |
Equity Based Incentive Compen_5
Equity Based Incentive Compensation Plan 1 (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Granted | 7,000 | 7,000 |
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 | 18,830 |
Granted | 7,000 | 7,000 |
Outstanding, end of year | 32,830 | 25,830 |
Exercisable at end of year | 13,310 | 8,140 |
Nonvested at end of year | 19,520 | 17,690 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding, beginning of year | $ 21.57 | $ 22.05 |
Granted | 18.69 | 20.28 |
Outstanding, end of year | 20.96 | 21.57 |
Exercisable at end of year | 21.53 | 21.50 |
Nonvested at end of year | $ 20.56 | $ 21.60 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Remaining Contractual Life [Roll Forward] | ||
Outstanding, end of year | 7 years 4 months 21 days | 7 years 9 months 25 days |
Exercisable at end of year | 6 years 2 months 9 days | 6 years 9 months 16 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Aggregate Intrinsic Value [Roll Forward] | ||
Outstanding, beginning of year | $ 21,350 | |
Outstanding, end of year | $ 1,940 | |
Exercisable at end of year | $ 1,940 |
Equity Based Incentive Compen_6
Equity Based Incentive Compensation Plan 2 - Restricted Stock Awards (Detail) - $ / shares | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted | 12,363 | 22,211 |
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 | 18,493 |
Granted | 12,363 | 23,821 |
Vested | (11,530) | (10,051) |
Forfeited/cancelled/expired | 0 | (1,610) |
Outstanding, end of year | 31,486 | 30,653 |
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 | $ 21.78 |
Granted | 18.69 | 19.62 |
Vested | 20.82 | 16.62 |
Forfeited/cancelled/expired | 21.43 | |
Outstanding, end of year | $ 21.10 | $ 21.98 |
Subordinated Debt (Narrative) (
Subordinated Debt (Narrative) (Detail) - USD ($) $ in Thousands | Feb. 07, 2017 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||||||
Subordinated debt | $ 24,934 | $ 24,895 | $ 24,855 | $ 24,816 | $ 24,776 | $ 24,737 | $ 24,697 | $ 24,658 | |
Subordinated Notes Due February 15, 2027 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 25,000 | ||||||||
Fixed interest rate | 6.125% | ||||||||
Description of fixed-to-floating interest rate terms | The Notes bear interest at a fixed rate of 6.125 percent per year, from and including February 7, 2017 to, but excluding February 15, 2022. From and including February 15, 2022 to the maturity date or earlier redemption date, the interest rate will reset quarterly at a variable rate equal to the then current 3-month LIBOR plus 414.5 basis points. | ||||||||
Subordinated debt | 24,900 | ||||||||
Debt issuance costs | $ 737 | ||||||||
Description for redemption of notes | The Company may not redeem the Notes prior to February 15, 2022, except that the Company may redeem the Notes at any time, at its option, in whole but not in part, subject to obtaining any required regulatory approvals, if (i) a change or prospective change in law occurs that could prevent the Company from deducting interest payable on the Notes for U.S. federal income tax purposes, (ii) a subsequent event occurs that precludes the Notes from being recognized as Tier 2 capital for regulatory capital purposes, or (iii) the Company is required to register as an investment company under the Investment Company Act of 1940, as amended, in each case, at a redemption price equal to 100 percent of the principal amount of the Notes plus any accrued and unpaid interest through, but excluding, the redemption date. | ||||||||
Debt instrument, redemption price, percentage | 100.00% | ||||||||
Subordinated Notes Due February 15, 2027 [Member] | 3-month LIBOR [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable interest rate | 4.145% |
Condensed Financial Informati_3
Condensed Financial Information - Parent Company Only (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Assets | |||||||||
Cash and Cash Equivalents | $ 136,590 | $ 61,439 | |||||||
Investment in subsidiaries | (157,554) | (154,487) | |||||||
Loans receivable, net | 902,981 | $ 940,735 | $ 974,596 | $ 990,346 | 1,026,894 | $ 1,032,318 | $ 1,007,132 | $ 996,879 | |
Other assets | 12,145 | 20,183 | 12,269 | 14,999 | 16,344 | 13,873 | 13,869 | 8,341 | |
Total Assets | 1,209,143 | 1,185,744 | 1,206,419 | 1,220,924 | 1,208,275 | 1,208,070 | 1,240,337 | 1,262,832 | |
Liabilities | |||||||||
Subordinated debt | 24,934 | 24,895 | 24,855 | 24,816 | 24,776 | 24,737 | 24,697 | 24,658 | |
Accrued interest payable | 572 | 728 | |||||||
Total Liabilities | 1,066,975 | 1,067,682 | |||||||
Shareholders’ Equity | 142,168 | 148,192 | 145,851 | 143,266 | 140,593 | 143,531 | 143,150 | 143,535 | $ 142,508 |
Total Liabilities and Shareholders’ Equity | 1,209,143 | $ 1,185,744 | $ 1,206,419 | $ 1,220,924 | 1,208,275 | $ 1,208,070 | $ 1,240,337 | $ 1,262,832 | |
Parent Company [Member] | |||||||||
Assets | |||||||||
Cash and Cash Equivalents | 6,878 | 8,411 | |||||||
Investment in subsidiaries | 157,554 | 154,487 | |||||||
Loans receivable, net | 934 | 1,104 | |||||||
Other assets | 1,916 | 1,536 | |||||||
Total Assets | 167,282 | 165,538 | |||||||
Liabilities | |||||||||
Subordinated debt | 24,934 | 24,776 | |||||||
Accrued interest payable | 196 | 196 | |||||||
Accounts payable | (16) | (27) | |||||||
Total Liabilities | 25,114 | 24,945 | |||||||
Shareholders’ Equity | 142,168 | 140,593 | |||||||
Total Liabilities and Shareholders’ Equity | $ 167,282 | $ 165,538 |
Condensed Financial Informati_4
Condensed Financial Information - Parent Company Only 1 (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income | ||||||||||
Interest income | $ 36,370 | $ 41,441 | ||||||||
Total Interest and Dividend Income | $ 8,862 | $ 9,419 | $ 9,539 | $ 10,596 | $ 10,340 | $ 10,498 | $ 11,629 | $ 11,840 | 38,416 | 44,307 |
Expense | ||||||||||
Long-term borrowings | 2,029 | 2,898 | ||||||||
Total Interest Expense | 2,037 | 2,290 | 2,737 | 3,292 | 3,620 | 3,867 | 4,836 | 4,952 | 10,356 | 17,275 |
Other operating expenses | 3,199 | 2,964 | ||||||||
Total Other Expenses | 5,084 | 5,832 | 5,063 | 4,972 | 4,558 | 4,684 | 4,638 | 4,422 | 20,951 | 18,302 |
Income tax benefit | (2,116) | 489 | 682 | 733 | (1,043) | 447 | 586 | (26) | (212) | (36) |
Net Income (Loss) | $ (6,190) | $ 1,601 | $ 2,224 | $ 2,273 | $ (3,503) | $ 1,454 | $ 1,908 | $ 785 | (92) | 644 |
Parent Company [Member] | ||||||||||
Income | ||||||||||
Interest income | 51 | 59 | ||||||||
Total Interest and Dividend Income | 51 | 59 | ||||||||
Expense | ||||||||||
Long-term borrowings | 1,536 | 1,531 | ||||||||
Total Interest Expense | 1,536 | 1,531 | ||||||||
Other operating expenses | 560 | 375 | ||||||||
Total Other Expenses | 560 | 375 | ||||||||
Total Expense | 2,096 | 1,906 | ||||||||
Loss before Equity in Undistributed Net Income of Subsidiaries and Income Tax Benefit | (2,045) | (1,847) | ||||||||
Equity in Undistributed Net Income of Subsidiaries | 1,473 | 2,071 | ||||||||
Income tax benefit | (480) | (420) | ||||||||
Net Income (Loss) | $ (92) | $ 644 |
Condensed Financial Informati_5
Condensed Financial Information - Parent Company Only 2 (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Condensed Statement Of Income Captions [Line Items] | |||||||||||
Net Income (Loss) | $ (6,190) | $ 1,601 | $ 2,224 | $ 2,273 | $ (3,503) | $ 1,454 | $ 1,908 | $ 785 | $ (92) | $ 644 | |
Other Comprehensive (Loss) Income, Net of Tax: | |||||||||||
Unrealized holding gains on available-for-sale securities | 950 | 320 | |||||||||
Tax effect | (199) | (67) | |||||||||
Net of tax amount | 751 | 253 | |||||||||
Reclassification adjustment for net gains arising during the period | [1] | (779) | (330) | ||||||||
Tax effect | 163 | 69 | |||||||||
Net of tax amount | (616) | (261) | |||||||||
Adjustment for loss recorded on replacement of derivative | (9) | 31 | |||||||||
Accretion of unrealized holding losses on securities transferred from available-for-sale to held-to-maturity | [2] | 4 | 3 | ||||||||
Tax effect | 1 | 1 | |||||||||
Net of tax amount | 3 | 2 | |||||||||
Fair value adjustment on derivatives | 1,258 | (681) | |||||||||
Tax effect | (263) | 137 | |||||||||
Net of tax amount | 995 | (544) | |||||||||
Total other comprehensive income (loss) | 1,124 | (519) | |||||||||
Total comprehensive income | 1,032 | 125 | |||||||||
Parent Company [Member] | |||||||||||
Condensed Statement Of Income Captions [Line Items] | |||||||||||
Net Income (Loss) | (92) | 644 | |||||||||
Other Comprehensive (Loss) Income, Net of Tax: | |||||||||||
Unrealized holding gains on available-for-sale securities | 950 | 320 | |||||||||
Tax effect | (199) | (67) | |||||||||
Net of tax amount | 751 | 253 | |||||||||
Reclassification adjustment for net gains arising during the period | [3] | (779) | (330) | ||||||||
Tax effect | 163 | 69 | |||||||||
Net of tax amount | (616) | (261) | |||||||||
Adjustment for loss recorded on replacement of derivative | (9) | 31 | |||||||||
Accretion of unrealized holding losses on securities transferred from available-for-sale to held-to-maturity | [2] | 4 | 3 | ||||||||
Tax effect | (1) | (1) | |||||||||
Net of tax amount | 3 | 2 | |||||||||
Fair value adjustment on derivatives | 1,258 | (681) | |||||||||
Tax effect | (263) | 137 | |||||||||
Net of tax amount | 995 | (544) | |||||||||
Total other comprehensive income (loss) | 1,124 | (519) | |||||||||
Total comprehensive income | $ 1,032 | $ 125 | |||||||||
[1] | Amounts are included in net gains on sale and call of available-for-sale securities 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. | ||||||||||
[3] | Amounts are included in net gains on sales and calls of investments on the Consolidated Statements of Operations in total other income. |
Condensed Financial Informati_6
Condensed Financial Information - Parent Company Only 3 (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities | ||||||||||
Net Income (Loss) | $ (6,190) | $ 1,601 | $ 2,224 | $ 2,273 | $ (3,503) | $ 1,454 | $ 1,908 | $ 785 | $ (92) | $ 644 |
ESOP expense | 248 | 236 | ||||||||
Stock based compensation | 223 | 253 | ||||||||
Amortization of subordinated debt issuance costs | 158 | 157 | ||||||||
Increase in other assets | 3,335 | (6,414) | ||||||||
Increase (decrease) in other liabilities | (360) | 6,761 | ||||||||
Net Cash Provided by Operating Activities | 14,756 | 11,726 | ||||||||
Cash Flows from Investing Activities | ||||||||||
Net decrease in loans | 79,841 | (26,028) | ||||||||
Net Cash Provided by (Used in) Investing Activities | 58,014 | (35,326) | ||||||||
Cash Flows from Financing Activities | ||||||||||
Acquisition of treasury stock | (2,529) | |||||||||
Proceeds from other borrowings | 300,000 | 25,000 | ||||||||
Repayments of other borrowings | (340,000) | (28,000) | ||||||||
Net Cash Provided by (Used in) Financing Activities | 2,381 | (68,504) | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 75,151 | (92,104) | ||||||||
Cash and Cash Equivalent – Beginning | 61,439 | 153,543 | 61,439 | 153,543 | ||||||
Cash and Cash Equivalent – Ending | 136,590 | 61,439 | 136,590 | 61,439 | ||||||
Parent Company [Member] | ||||||||||
Cash Flows from Operating Activities | ||||||||||
Net Income (Loss) | (92) | 644 | ||||||||
Undistributed net income of subsidiaries | (1,473) | (2,071) | ||||||||
ESOP expense | 248 | 236 | ||||||||
Stock based compensation | 295 | 253 | ||||||||
Amortization of subordinated debt issuance costs | 158 | 157 | ||||||||
Increase in other assets | (850) | (838) | ||||||||
Increase (decrease) in other liabilities | 11 | (41) | ||||||||
Net Cash Provided by Operating Activities | (1,703) | (1,660) | ||||||||
Cash Flows from Investing Activities | ||||||||||
Net decrease in loans | 170 | 162 | ||||||||
Net Cash Provided by (Used in) Investing Activities | 170 | 162 | ||||||||
Cash Flows from Financing Activities | ||||||||||
Acquisition of treasury stock | (2,529) | |||||||||
Proceeds from other borrowings | 5,000 | |||||||||
Repayments of other borrowings | (5,000) | |||||||||
Net Cash Provided by (Used in) Financing Activities | (2,529) | |||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (1,533) | (4,027) | ||||||||
Cash and Cash Equivalent – Beginning | $ 8,411 | $ 12,438 | 8,411 | 12,438 | ||||||
Cash and Cash Equivalent – Ending | $ 6,878 | $ 8,411 | $ 6,878 | $ 8,411 |
Quarterly Financial Informati_3
Quarterly Financial Information Statement of Operations of Malvern Bancorp Inc. (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Total Interest and Dividend Income | $ 8,862 | $ 9,419 | $ 9,539 | $ 10,596 | $ 10,340 | $ 10,498 | $ 11,629 | $ 11,840 | $ 38,416 | $ 44,307 |
Total Interest Expense | 2,037 | 2,290 | 2,737 | 3,292 | 3,620 | 3,867 | 4,836 | 4,952 | 10,356 | 17,275 |
Net Interest Income | 6,825 | 7,129 | 6,802 | 7,304 | 6,720 | 6,631 | 6,793 | 6,888 | 28,060 | 27,032 |
Provision for Loan Losses | 10,626 | 550 | 7,400 | 435 | 625 | 2,150 | 11,176 | 10,610 | ||
Total Other Income | 579 | 793 | 1,167 | 1,224 | 692 | 389 | 964 | 443 | 3,763 | 2,488 |
Total Other Expenses | 5,084 | 5,832 | 5,063 | 4,972 | 4,558 | 4,684 | 4,638 | 4,422 | 20,951 | 18,302 |
Income (Loss) before income tax expense | (8,306) | 2,090 | 2,906 | 3,006 | (4,546) | 1,901 | 2,494 | 759 | (304) | 608 |
Income tax benefit | (2,116) | 489 | 682 | 733 | (1,043) | 447 | 586 | (26) | (212) | (36) |
Net Income (Loss) | $ (6,190) | $ 1,601 | $ 2,224 | $ 2,273 | $ (3,503) | $ 1,454 | $ 1,908 | $ 785 | $ (92) | $ 644 |
Earnings (loss) per share: | ||||||||||
Basic | $ (0.82) | $ 0.21 | $ 0.30 | $ 0.30 | $ 0.46 | $ 0.19 | $ 0.25 | $ 0.10 | $ 0.01 | $ 0.08 |
Diluted | $ (0.82) | $ 0.21 | $ 0.30 | $ 0.30 | $ 0.46 | $ 0.19 | $ 0.25 | $ 0.10 | $ 0.01 | $ 0.08 |
Weighted Average Common Shares Outstanding | ||||||||||
Basic | 7,548,958 | 7,545,371 | 7,529,408 | 7,525,808 | 7,522,199 | 7,538,375 | 7,663,771 | 7,665,842 | 7,537,408 | 7,597,528 |
Diluted | 7,550,766 | 7,546,200 | 7,530,151 | 7,526,376 | 7,522,360 | 7,538,375 | 7,663,771 | 7,665,842 | 7,538,116 | 7,597,726 |
Quarterly Financial Informati_4
Quarterly Financial Information Statement of Financial Condition of Malvern Bancorp Inc. (Unaudited) (Detail) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||
Cash and due from depository institutions | $ 99,670,000 | $ 90,441,000 | $ 99,358,000 | $ 83,764,000 | $ 16,386,000 | $ 30,653,000 | $ 1,829,000 | $ 1,337,000 | |
Interest bearing deposits in depository institutions | 36,920,000 | 14,513,000 | 9,556,000 | 25,458,000 | 45,053,000 | 28,291,000 | 124,239,000 | 158,465,000 | |
Investment securities available-for-sale, at fair value | 40,813,000 | 32,998,000 | 27,397,000 | 33,704,000 | 30,018,000 | 31,722,000 | 20,325,000 | 22,225,000 | |
Equity securities Fair Value | 1,500,000 | 1,504,000 | 1,502,000 | 1,520,000 | 1,523,000 | 1,523,000 | 1,514,000 | 1,498,000 | |
Investment securities held to maturity | 28,507,000 | 31,795,000 | 25,834,000 | 14,161,000 | 14,970,000 | 15,921,000 | 18,046,000 | 20,578,000 | |
Restricted stock, at cost | 7,776,000 | 7,896,000 | 8,891,000 | 9,327,000 | 9,622,000 | 9,766,000 | 10,913,000 | 11,115,000 | |
Loans receivable, net | 902,981,000 | 940,735,000 | 974,596,000 | 990,346,000 | 1,026,894,000 | 1,032,318,000 | 1,007,132,000 | 996,879,000 | |
Loan held for sale | 33,199,000 | 0 | |||||||
OREO | 4,961,000 | 4,961,000 | 5,796,000 | 5,796,000 | 5,796,000 | 5,796,000 | 5,796,000 | 5,796,000 | |
Accrued interest receivable | 3,512,000 | 3,370,000 | 3,598,000 | 4,051,000 | 3,677,000 | 5,680,000 | 4,121,000 | 4,061,000 | |
Operating lease right-of-use-assets | 1,796,000 | 2,168,000 | 2,322,000 | 2,479,000 | 2,638,000 | 2,799,000 | 2,959,000 | 3,119,000 | |
Property and equipment, net | 5,777,000 | 5,902,000 | 6,040,000 | 6,154,000 | 6,274,000 | 6,355,000 | 6,476,000 | 6,594,000 | |
Deferred income taxes, net | 3,530,000 | 3,389,000 | 3,535,000 | 3,601,000 | 3,680,000 | 3,103,000 | 2,974,000 | 2,806,000 | |
Bank-owned life insurance | 26,056,000 | 25,889,000 | 25,725,000 | 25,564,000 | 25,400,000 | 20,270,000 | 20,144,000 | 20,018,000 | |
Other assets | 12,145,000 | 20,183,000 | 12,269,000 | 14,999,000 | 16,344,000 | 13,873,000 | 13,869,000 | 8,341,000 | |
Total Assets | 1,209,143,000 | 1,185,744,000 | 1,206,419,000 | 1,220,924,000 | 1,208,275,000 | 1,208,070,000 | 1,240,337,000 | 1,262,832,000 | |
Deposits | 938,159,000 | 907,704,000 | 912,213,000 | 900,465,000 | 890,906,000 | 884,444,000 | 915,900,000 | 943,819,000 | |
FHLB advances | 90,000,000 | 90,000,000 | 110,000,000 | 130,000,000 | 130,000,000 | 130,000,000 | 133,000,000 | 133,000,000 | |
Secured borrowing | 4,225,000 | 4,225,000 | 4,225,000 | 4,250,000 | |||||
Other borrowings | 5,000,000 | ||||||||
Subordinated debt | 24,934,000 | 24,895,000 | 24,855,000 | 24,816,000 | 24,776,000 | 24,737,000 | 24,697,000 | 24,658,000 | |
Operating lease liabilities | 1,830,000 | 2,204,000 | 2,357,000 | 2,512,000 | 2,671,000 | 2,824,000 | 2,976,000 | 3,128,000 | |
Other liabilities | 12,052,000 | 12,749,000 | 11,143,000 | 14,865,000 | 15,104,000 | 18,309,000 | 16,389,000 | 10,442,000 | |
Shareholders' equity | 142,168,000 | 148,192,000 | 145,851,000 | 143,266,000 | 140,593,000 | 143,531,000 | 143,150,000 | 143,535,000 | $ 142,508,000 |
Total Liabilities and Shareholders’ Equity | $ 1,209,143,000 | $ 1,185,744,000 | $ 1,206,419,000 | $ 1,220,924,000 | $ 1,208,275,000 | $ 1,208,070,000 | $ 1,240,337,000 | $ 1,262,832,000 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||||||||
Jan. 07, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Subsequent Event [Line Items] | |||||||||
Loans aggregate book/outstanding balance | $ 902,981 | $ 940,735 | $ 974,596 | $ 990,346 | $ 1,026,894 | $ 1,032,318 | $ 1,007,132 | $ 996,879 | |
Three Commercial Real Estate Loans [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Loans held-for-sale at a fair value | 18,900 | ||||||||
Three Commercial Real Estate Loans [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Loans aggregate book/outstanding balance | $ 29,300 | ||||||||
Loans net loss on sold | 10,800 | ||||||||
One Non-accrual Loan [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Loans aggregate book/outstanding balance | 12,200 | ||||||||
Two Performing TDR Loans [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Loans aggregate book/outstanding balance | $ 17,100 | ||||||||
One Additional Non-accrual Commercial Real Estate Loan [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Loans aggregate book/outstanding balance | $ 13,600 |