Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2017 | Aug. 07, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | MALVERN BANCORP, INC. | |
Entity Central Index Key | 1,550,603 | |
Document Type | 10-Q/A | |
Trading Symbol | MLVF | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | true | |
Amendment Description | EXPLANATORY NOTE As previously reported in a Form 8-K filed on November 28, 2017 (the “Item 4.02 8-K”), on November 21, 2017, Malvern Bancorp, Inc. (the “Company”) was advised by BDO USA, LLP (“BDO”), its independent registered public accounting firm, that the Company should disclose that BDO’s audit report on the Company’s consolidated financial statements as of September 30, 2016 and 2015, and for each of the years in the two year period ended September 30, 2016, and BDO’s interim reviews of the Company’s consolidated interim financial statements as of and for the periods ended December 31, 2016, March 31, 2017 and June 30, 2017 (collectively, the “Specified Financial Statements”), should no longer be relied upon. As a result of the foregoing, the Company is restating the Specified Financial Statements. The audited annual financial statements for the fiscal years ended September 30, 2016 and 2015, each of the years in the two year period ended September 30, 2016, as included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016, which was originally filed on December 14, 2016 (the “Original 10-K Filing”), have been restated as set forth in the Company’s Amendment No. 1 on Form 10-K/A (the “10-K Amendment”). Restatements of the Company’s consolidated interim financial statements for the periods ended December 31, 2016 and March 31, 2017 have been filed in amendments to the Company’s Quarterly Reports on Form 10-Q/A for such periods. The unaudited interim financial statements for the period ended June 30, 2017, as included in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2017, which was originally filed on August 9, 2017 (the “Original Third Quarter-Fiscal 2017 10-Q Filing”), have been restated as set forth in this Amendment No. 1 on Form 10-Q/A (this “Amendment”). Also as previously reported in the Item 4.02 8-K, BDO also advised the Company that they have concluded that a material weakness in the Company’s internal controls over financial reporting existed, and that BDO’s report on the effectiveness of the Company’s internal control over financial reporting as of September 30, 2016 in Item 9A of the Original 10-K Filing that the Company’s internal control over financial reporting was effective as of September 30, 2016, should no longer be relied upon. The matters described above relate to the Company’s income tax account balances. The effect of these matters is to increase net income for fiscal 2016 by approximately $208,000, fiscal 2015 by approximately $970,000 and fiscal 2014 by approximately $388,000. As of and for the three and nine months ended June 30, 2017, the net effect is a decrease to net income of approximately $360,000 and $796,000, respectively, and an increase in tax liability account of $360,000 and $796,000, respectively, For the three and nine months ended June 30, 2017. Please refer to the table below for an analysis of the impact on the consolidated balance sheets and income statements for the periods affected. For Year Ended September 30, 2014 2015 2016 (In thousands) As Filed Amount of Misstatement Restated Amount As Filed Amount of Misstatement Restated Amount As Filed Amount of Misstatement Restated Amount Total Assets $ 542,264 — $ 542,264 $ 655,690 — $ 655,690 $ 821,272 — $ 821,272 Liabilities and Shareholders’ Equity Other liabilities 2,604 (388 ) 2,216 3,575 (1,358 ) 2,217 4,549 (1,566 ) 2,983 Total Liabilities 465,492 (388 ) 465,104 574,299 (1,358 ) 572,941 726,681 (1,566 ) 725,115 Total Shareholders’ Equity 76,772 388 77,160 81,391 1,358 82,749 94,591 1,566 96,157 Total Liabilities and Shareholders’ Equity $ 542,264 — $ 542,264 $ 655,690 — $ 655,690 $ 821,272 — $ 821,272 At December 31, 2016 At March 31, 2017 At June 30, 2017 (In thousands) As Filed Amount of Misstatement Restated Amount As Filed Amount of Misstatement Restated Amount As Filed Amount of Misstatement Restated Amount Total Assets $ 879,002 — $ 879,002 $ 961,815 — $ 961,815 $ 1,010,908 — $ 1,010,908 Liabilities and Shareholders’ Equity Other liabilities 3,662 (1,369 ) 2,293 3,206 (1,130 ) 2,076 4,697 (770 ) 3,927 Total Liabilities 783,267 (1,369 ) 781,898 864,351 (1,130 ) 863,221 911,245 (770 ) 910,475 Total Shareholders’ Equity 95,735 1,369 97,104 97,464 1,130 98,594 99,663 770 100,433 Total Liabilities and Shareholders’ Equity $ 879,002 — $ 879,002 $ 961,815 — $ 961,815 $ 1,010,908 — $ 1,010,908 For Year Ended September 30, 2014 2015 2016 (In thousands) As Filed Amount of Misstatement Restated Amount As Filed Amount of Misstatement Restated Amount As Filed Amount of Misstatement Restated Amount Income (Loss) before income tax expense $ 334 — $ 344 $ 3,698 — $ 3,698 $ 5,976 — $ 5,976 Income tax benefit (expense) (21 ) 388 367 — 970 $ 970 5,966 208 $ 6,174 Net Income (Loss) $ 323 388 711 $ 3,698 970 $ 4,668 $ 11,942 208 $ 12,150 Basic Earnings Per Share $ 0.05 0.06 $ 0.11 $ 0.58 0.15 $ 0.73 $ 1.86 0.04 $ 1.90 Diluted Earnings Per Share n/a n/a n/a n/a n/a n/a $ 1.86 0.04 $ 1.90 For The Three Months Ended, December 31, 2016 March 31, 2017 June 30, 2017 (In thousands) As Filed Amount of Misstatement Restated Amount As Filed Amount of Misstatement Restated Amount As Filed Amount of Misstatement Restated Amount Income (Loss) before income tax expense $ 1,462 — $ 1,462 $ 1,758 — $ 1,758 $ 2,582 — $ 2,582 Income tax benefit (expense) (292 ) (197 ) (489 ) (349 ) (239 ) (588 ) (503 ) (360 ) (863 ) Net Income (Loss) $ 1,170 (197 ) $ 973 $ 1,409 (239 ) $ 1,170 $ 2,079 (360 ) $ 1,719 Basic Earnings Per Share $ 0.18 (0.03 ) $ 0.15 $ 0.22 (0.04 ) $ 0.18 $ 0.32 (0.05 ) $ 0.27 Diluted Earnings Per Share $ 0.18 (0.03 ) $ 0.15 $ 0.22 (0.04 ) $ 0.18 $ 0.32 (0.05 ) $ 0.27 These matters have no effect on the Company’s cash position, net interest margin, pre tax income or the Company’s operating expenses. We are filing this Amendment to the Original Third Quarter-Fiscal 2017 10-Q filing in order to: ● amend Item 1, “Financial Statements,” to restate the unaudited consolidated interim financial statements previously issued in the Original Third Quarter-Fiscal 2017 10-Q Filing to make corrections described in the third paragraph of this Explanatory Note (as so restated, the “Restated Third Quarter-Fiscal 2017 Financials”); ● amend Item 1A, “Risk Factors”, to refer to the Risk Factors included in the Original 10-K Filing, as amended by the 10-K Amendment; ● make revisions to other sections of the Original Third Quarter-Fiscal 2017 10-Q Filing to account for corrections included in the Restated Third Quarter-Fiscal 20l7 Financials, in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”; and ● amend Item 4, “Controls and Procedures” with respect to our conclusions regarding the effectiveness of our disclosure controls and procedures and changes to our internal control over financial reporting. As required by Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), new certifications of the Company’s principal executive officer and principal financial officer are also being filed as exhibits to this Amendment. Similarly, revised XBRL exhibits are being filed as exhibits to this Amendment. As a result, Item 6, “Exhibits”, has also been modified. This Amendment should be read in conjunction with the Original Third Quarter-Fiscal 2017 10-Q Filing, which continues to speak as of the date of the Original Third Quarter-Fiscal 2017 10-Q Filing. Except as specifically noted above, this Amendment does not modify or update disclosures in the Original Third Quarter-Fiscal 2017 10-Q Filing. Accordingly, this Amendment does not reflect events occurring after the filing of the Original Third Quarter-Fiscal 2017 10-Q Filing or modify or update any related or other disclosures. All numbers in this Amendment reflect the restatements described above. | |
Current Fiscal Year End Date | --09-30 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,572,684 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | |
Assets | |||
Cash and due from depository institutions | [1] | $ 1,622 | $ 1,297 |
Interest bearing deposits in depository institutions | [1] | 111,805 | 95,465 |
Cash and Cash Equivalents | [1] | 113,427 | 96,762 |
Investment securities available for sale, at fair value | [1] | 16,811 | 66,387 |
Investment securities held to maturity, at cost (fair value of $35,625 and $40,817, respectively) | [1] | 36,027 | 40,551 |
Restricted stock, at cost | [1] | 5,458 | 5,424 |
Loans receivable, net of allowance for loan losses of $7,917 and $5,434, respectively | [1] | 800,337 | 574,160 |
Accrued interest receivable | [1] | 2,837 | 2,558 |
Property and equipment, net | [1] | 7,182 | 6,637 |
Deferred income taxes, net | [1] | 7,912 | 8,827 |
Bank-owned life insurance | [1] | 18,798 | 18,418 |
Other assets | [1] | 2,119 | 1,548 |
Total Assets | [1] | 1,010,908 | 821,272 |
Deposits: | |||
Deposits-noninterest-bearing | [1] | 50,097 | 34,547 |
Deposits-interest-bearing | [1] | 709,582 | 567,499 |
Total Deposits | [1] | 759,679 | 602,046 |
FHLB advances | [1] | 118,000 | 118,000 |
Subordinated debt | [1] | 24,263 | |
Advances from borrowers for taxes and insurance | [1] | 3,546 | 1,659 |
Accrued interest payable | [1] | 1,060 | 427 |
Other liabilities | [1] | 3,927 | 2,983 |
Total Liabilities | [1] | 910,475 | 725,115 |
Commitments and Contingencies | [1] | ||
Shareholders' Equity | |||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued | [1] | ||
Common stock, $0.01 par value, 50,000,000 shares authorized, issued and outstanding: 6,572,684 shares at June 30, 2017 and 6,560,403 shares at September 30, 2016 | [1] | 66 | 66 |
Additional paid-in-capital | [1] | 60,670 | 60,461 |
Retained earnings | [1] | 41,184 | 37,322 |
Unearned Employee Stock Ownership Plan (ESOP) shares | [1] | (1,520) | (1,629) |
Accumulated other comprehensive income (loss) | [1] | 33 | (63) |
Total Shareholders' Equity | [1] | 100,433 | 96,157 |
Total Liabilities and Shareholders' Equity | [1] | $ 1,010,908 | $ 821,272 |
[1] | Restated |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity, fair value | $ 35,625 | $ 40,817 |
Allowance for loan losses | $ 7,917 | $ 5,434 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 6,572,684 | 6,560,403 |
Common stock, outstanding | 6,572,684 | 6,560,403 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2017 | [1] | Jun. 30, 2016 | Jun. 30, 2017 | [1] | Jun. 30, 2016 | ||
Interest and Dividend Income | |||||||
Loans, including fees | $ 8,246 | $ 5,560 | $ 21,926 | $ 15,226 | |||
Investment securities, taxable | 422 | 643 | 1,364 | 2,313 | |||
Investment securities, tax-exempt | 100 | 192 | 422 | 577 | |||
Dividends, restricted stock | 64 | 65 | 192 | 182 | |||
Interest-bearing cash accounts | 141 | 70 | 349 | 129 | |||
Total Interest and Dividend Income | 8,973 | 6,530 | 24,253 | 18,427 | |||
Interest Expense | |||||||
Deposits | 1,645 | 1,180 | 4,393 | 3,305 | |||
Short-term borrowings | 1 | 12 | |||||
Long-term borrowings | 545 | 570 | 1,615 | 1,631 | |||
Subordinated debt | 383 | 604 | |||||
Total Interest Expense | 2,574 | 1,750 | 6,624 | 4,936 | |||
Net interest income | 6,399 | 4,780 | 17,629 | 13,491 | |||
Provision for Loan Losses | 645 | 472 | 2,302 | 847 | |||
Net Interest Income after Provision for Loan Losses | 5,754 | 4,308 | 15,327 | 12,644 | |||
Other Income | |||||||
Service charges and other fees | 233 | 227 | 730 | 665 | |||
Rental income-other | 51 | 55 | 161 | 155 | |||
Gain on sale of investments, net | 374 | 229 | 432 | 421 | |||
Gain on sale of loans, net | 31 | 20 | 106 | 90 | |||
Earnings on bank-owned life insurance | 125 | 128 | 380 | 387 | |||
Total Other Income | 814 | 659 | 1,809 | 1,718 | |||
Other Expense | |||||||
Salaries and employee benefits | 1,873 | 1,600 | 5,389 | 4,621 | |||
Occupancy expense | 533 | 469 | 1,541 | 1,348 | |||
Federal deposit insurance premium | 78 | 40 | 173 | 472 | |||
Advertising | 67 | 26 | 191 | 81 | |||
Data processing | 308 | 278 | 911 | 845 | |||
Professional fees | 621 | 415 | 1,421 | 1,176 | |||
Other operating expenses | 506 | 550 | 1,708 | 1,620 | |||
Total Other Expense | 3,986 | 3,378 | 11,334 | 10,163 | |||
Income before income tax expense | 2,582 | 1,589 | 5,802 | 4,199 | |||
Income tax expense | 863 | 1,940 | |||||
Net Income | $ 1,719 | $ 1,589 | $ 3,862 | $ 4,199 | [1] | ||
Earnings Per Common Share: | |||||||
Basic (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.60 | $ 0.66 | |||
Diluted (in dollars per share) | $ 0.27 | $ 0.25 | $ 0.60 | $ 0.66 | |||
Weighted Average Common Shares Outstanding: | |||||||
Basic (in shares) | 6,443,515 | 6,411,766 | 6,427,978 | 6,407,403 | |||
Diluted (in shares) | 6,445,288 | 6,411,804 | 6,428,426 | 6,407,433 | |||
Dividends Declared Per Share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | |||
[1] | Restated |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2017 | [1] | Jun. 30, 2016 | Jun. 30, 2017 | [1] | Jun. 30, 2016 | |||
Income Statement [Abstract] | ||||||||
Net Income | $ 1,719 | $ 1,589 | $ 3,862 | $ 4,199 | [1] | |||
Other Comprehensive Income, Net of Tax: | ||||||||
Unrealized holding gains (losses) on available-for-sale securities | 446 | 972 | (299) | 2,111 | ||||
Tax effect | (152) | (330) | 102 | (718) | ||||
Net of tax amount | 294 | 642 | (197) | 1,393 | ||||
Reclassification adjustment for net gains arising during the period | [2] | (374) | (229) | (432) | (421) | |||
Tax effect | 127 | 78 | 147 | 143 | ||||
Net of tax amount | (247) | (151) | (285) | (278) | ||||
Accretion of unrealized holding losses on securities transferred from available-for-sale to held-to-maturity | [3] | 2 | 3 | 7 | 7 | |||
Tax effect | (1) | (1) | (2) | (2) | ||||
Net of tax amount | 1 | 2 | 5 | 5 | ||||
Fair value adjustments on derivatives | (151) | (278) | 868 | (527) | ||||
Tax effect | 51 | 94 | (295) | 285 | ||||
Net of tax amount | (100) | (184) | 573 | (242) | ||||
Total other comprehensive (loss) income | (52) | 309 | 96 | 878 | [1] | |||
Total comprehensive income | $ 1,667 | $ 1,898 | $ 3,958 | $ 5,077 | ||||
[1] | Restated | |||||||
[2] | Amounts are included in gain on sale of investments, net on the Consolidated Statements of Operations in total other income. | |||||||
[3] | Amounts are included in interest and dividends on investment securities on the Consolidated Statements of Operations. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Unearned ESOP Shares [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | |
Balance at beginning at Sep. 30, 2015 | [1] | $ 66 | $ 60,365 | $ 25,172 | $ (1,775) | $ (1,079) | $ 82,749 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | [1] | 4,199 | 4,199 | ||||
Other comprehensive income | [1] | 878 | 878 | ||||
Committed to be released ESOP shares (10,800 shares) | [1] | 72 | 110 | 182 | |||
Balance at ending at Jun. 30, 2016 | [1] | 66 | 60,437 | 29,371 | (1,665) | (201) | 88,008 |
Balance at beginning at Sep. 30, 2016 | [1] | 66 | 60,461 | 37,322 | (1,629) | (63) | 96,157 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | [1] | 3,862 | 3,862 | ||||
Other comprehensive income | [1] | 96 | 96 | ||||
Committed to be released ESOP shares (10,800 shares) | [1] | 115 | 109 | 224 | |||
Stock based compensation | [1] | 94 | 94 | ||||
Balance at ending at Jun. 30, 2017 | [1] | $ 66 | $ 60,670 | $ 41,184 | $ (1,520) | $ 33 | $ 100,433 |
[1] | Restated |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||||
Committed to be released ESOP shares | 3,600 | 3,600 | 10,800 | 10,800 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | |||
Cash Flows from Operating Activities | ||||
Net income | [1] | $ 3,862 | $ 4,199 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation expense | 544 | [1] | 478 | |
Provision for loan losses | 2,302 | [1] | 847 | |
Deferred income taxes expense | 866 | [1] | 985 | |
ESOP expense | 224 | [1] | 182 | |
Stock based compensation | 94 | [1] | ||
Amortization of premiums and discounts on investment securities, net | 711 | [1] | 967 | |
(Accretions) amortization of loan origination fees and costs | (807) | [1] | 930 | |
Amortization of mortgage service rights | 47 | [1] | 52 | |
Net gain on sale of investment securities available-for-sale | (432) | [1] | (421) | |
Net gain on sale of secondary market loans | (106) | [1] | (90) | |
Proceeds on sale of secondary market loans | 6,755 | [1] | 4,116 | |
Originations of secondary market loans | (6,649) | [1] | (4,026) | |
Gain on sale of other real estate owned | [1] | (45) | ||
Write down of other real estate owned | [1] | 20 | ||
Earnings on bank-owned life insurance | (380) | [1] | (387) | |
Increase in accrued interest receivable | (279) | [1] | (230) | |
Increase in accrued interest payable | 633 | [1] | 40 | |
Increase decrease in other liabilities | 944 | [1] | (334) | |
Increase in other assets | (17) | [1] | (567) | |
Increase in income tax receivable | (179) | [1] | ||
Net Cash Provided by Operating Activities | 8,133 | [1] | 6,716 | |
Investment securities available-for-sale: | ||||
Purchases | (250) | [1] | (2,115) | |
Sales | 48,860 | [1] | 50,469 | |
Maturities, calls and principal repayments | 608 | [1] | 790 | |
Investment securities held-to-maturity: | ||||
Maturities, calls and principal repayments | 4,326 | [1] | 11,193 | |
(Loan originations) and principal collections, net | (227,672) | [1] | (164,745) | |
Proceeds from sale of other real estate owned | [1] | 493 | ||
Proceeds from death benefit of bank-owned life insurance | [1] | 1,049 | ||
Net increase in restricted stock | (34) | [1] | (783) | |
Purchases of property and equipment | (1,089) | [1] | (597) | |
Net Cash Used in Investing Activities | (175,251) | [1] | (104,246) | |
Cash Flows from Financing Activities | ||||
Net increase in deposits | 157,633 | [1] | 113,521 | |
Proceeds from long-term borrowings | 105,000 | [1] | 86,000 | |
Repayment of long-term borrowings | (105,000) | [1] | (66,000) | |
Increase in advances from borrowers for taxes and insurance | 1,887 | [1] | 2,129 | |
Proceeds from issuance of subordinate debt | 24,263 | [1] | ||
Net Cash Provided by Financing Activities | 183,783 | [1] | 135,650 | |
Net Increase in Cash and Cash Equivalents | 16,665 | [1] | 38,120 | |
Cash and Cash Equivalent - Beginning | 96,762 | [1] | 40,263 | |
Cash and Cash Equivalent - Ending | 113,427 | [1] | 78,383 | |
Supplementary Cash Flows Information | ||||
Interest paid | 5,991 | [1] | 4,896 | |
Non-cash transfer of loans to loans held for sale | [1] | $ 304 | ||
[1] | Restated |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The consolidated financial statements of Malvern Bancorp, Inc. (the “Company” or “Malvern Bancorp”) include the accounts of the Company and its wholly-owned subsidiary, Malvern Federal Savings Bank (“Malvern Federal Savings” or the “Bank”) and the Bank’s subsidiary, Strategic Asset Management Group, Inc. All significant intercompany accounts and transactions have been eliminated from the accompanying consolidated financial statements. The Bank is a federally chartered stock savings bank which was originally organized in 1887. The Bank operates from its headquarters in Paoli, Pennsylvania and through its eight full service financial center offices in Chester and Delaware Counties, Pennsylvania and a Private Banking Loan Production headquarters office in Morristown, New Jersey. The Bank has one subsidiary, Strategic Asset Management Group, Inc. (“SAMG”), a Pennsylvania corporation. As of December 15, 2016, SAMG holds a 100% ownership interest in Malvern Insurance Associates, LLC (“Malvern Insurance”), a Pennsylvania limited liability company. Malvern Insurance is a licensed insurance broker under Pennsylvania law. In preparing the unaudited consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the unaudited consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to change in the near term relate to the determination of the allowance for loan losses, other real estate owned, the evaluation of deferred tax assets and the other-than-temporary impairment evaluation of securities. The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 2 – Recent Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, “Scope of Modification Accounting”, to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: (1) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this update. For public business entities, the amendments in this update become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. An entity should apply the amendments in this update prospectively to an award modified on or after the adoption date. The Company is currently evaluating the impact of adopting the new guidance on the Consolidated Financial Statements, but it is not expected to have a material impact. In March 2017, the FASB issued ASU No. 2017-08, “Premium Amortization on Purchased Callable Debt Securities.” This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the provisions of ASU No. 2017-08 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The new guidance requires that the service cost component of net benefit costs of pension and postretirement benefit plans be reported in the same line item as other compensation costs in the Consolidated Statements of Income. The other components of net benefit cost will be required to be presented in a separate line item. The guidance also specifies that only the service cost component will be eligible for capitalization. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting the new guidance on the Consolidated Financial Statements, but is not expected to have a material impact. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230) Restricted Cash”. The new guidance requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. If restricted cash is presented separately from cash and cash equivalents on the balance sheet, companies will be required to reconcile the amounts presented on the statement of cash flows to the amounts on the balance sheet. Companies will also need to disclose information about the nature of the restrictions. The amendments in this update do not provide a definition of restricted cash or restricted cash equivalents. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating the impact of adopting the new guidance on the Consolidated Financial Statements. In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory”. The ASU requires an entity to recognize the income tax consequences of intra-entity transfers of assets other than inventory at the time that the transfer occurs. Current guidance does not require recognition of tax consequences until the asset is eventually sold to a third party. ASU 2016-16 is effective for fiscal years, and interim periods within, beginning after December 15, 2017, with early adoption permitted as of the first interim period presented in a year. The Company is currently evaluating the impact of adopting the new guidance on the Consolidated Financial Statements, but it is not expected to have a material impact. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” Current GAAP is unclear or does not include specific guidance on how to classify certain transactions in the statement of cash flows. This ASU is intended to reduce diversity in practice in how eight particular transactions are classified in the statement of cash flows. ASU No. 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. Entities will be required to apply the guidance retrospectively. If it is impracticable to apply the guidance retrospectively for an issue, the amendments related to that issue would be applied prospectively. As this guidance only affects the classification within the statement of cash flows, ASU No. 2016-15 is not expected to have a material impact on the Company’s Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which sets forth a “current expected credit loss” (“CECL”) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the existing incurred loss model and will apply to the measurement of credit losses on financial assets measured at amortized cost and to some off-balance sheet credit exposures. This ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has begun collecting and evaluating data and system requirements to implement this standard. The adoption of this update could have a material impact on the Company’s consolidated results of operations and financial condition. The extent of the impact is still unknown and will depend on many factors, such as the composition of the Company’s loan portfolio and expected loss history at adoption. In May 2016, the FASB issued ASU No. 2016-12 “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” The guidance is intended to clarify the guidance previously issued in May 2014 related to the recognition of revenue from contracts with customers. The updated guidance includes narrow-scope improvements intended to address implementation issues and to provide additional practical expedients in the guidance. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-10 “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” The guidance is intended to clarify the guidance previously issued in May 2014 related to the recognition of revenue from contracts with customers. The updated guidance is intended to reduce the cost and complexity of applying the guidance on identifying promised goods or services in a contract and to improve the operability and understandability of the implementation guidance regarding the licensing of intellectual property. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” The guidance in this update supersedes the current lease accounting guidance for both the lessees and lessors under ASC 840, Leases. The new guidance requires lessees to evaluate whether a lease is a finance lease using criteria that are similar to what lessees use today to determine whether they have a capital lease. Leases not classified as finance leases are classified as operating leases. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. The lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to today’s guidance for operating leases. The new guidance will require lessors to account for leases using an approach that is substantially similar to the existing guidance for sales-type, direct financing leases and operating leases. This new guidance will be effective for the Company for the first reporting period beginning after December 15, 2018, with earlier adoption permitted. Adoption of the amendment must be applied on a modified retrospective approach. The Company has several lease agreements, such as branch locations, which are currently considered operating leases, and therefore, not recognized on the Company’s consolidated statements of condition. The Company expects the new guidance will require these lease agreements to now be recognized on the consolidated statements of condition as a right-of-use asset and a corresponding lease liability. Therefore, the Company’s preliminary evaluation indicates the provisions of ASU No. 2016-02 are expected to impact the Company’s consolidated statements of condition. However, the Company continues to evaluate the extent of potential impact the new guidance will have on the Company’s Consolidated Financial Statements. |
Correction of Error in Financia
Correction of Error in Financial Statements | 9 Months Ended |
Jun. 30, 2017 | |
Correction Of Error In Financial Statements | |
Correction of Error in Financial Statements | Note 3 - Correction of Error in Financial Statements Subsequent to the issuance of the Company’s Form 10-Q for the three and nine months ended June 30, 2017, the Company identified errors in its financial statements. Accordingly, the Company has restated the unaudited consolidated financial statements for the three and nine months ended June 30, 2017 to reflect the error corrections, the most significant of which are as follows: Item 1 of Part I of this Amendment No. 1 on Form 10-Q/A includes unaudited consolidated financial statements at June 30, 2017 that have been restated to correct the manner in which the Company originally accounted for the Bank’s tax account balances. The restated unaudited consolidated financial statements for the three and nine months ended June 30, 2017 contained in this Amendment No. 1 on Form 10-Q/A reflect a decrease in net income of approximately $360,000 and $796,000, respectively, as well as an increase in tax liability account of $360,000 and $796,000,respectively, For the three and nine months ended as of June 30, 2017, compared with the unaudited consolidated financial statements that were included in the Company’s Report on Form 10-Q for the three and nine months ended June 30, 2017, as originally filed (the “Original Financial Statements”). The changes in Shareholder’s Equity and Retained Earnings were also impacted by the corrections discussed in the Explanatory Note for the years ended September 30, 2016, 2015 and 2014. See the table below for an analysis of the impact on the unaudited consolidated balance sheets and income statements for the periods affected. For the three months ended June 30, 2017, the correction decreased Net Income from $2.1 million to $1.7 million and decreased Net Income from $4.7 million to $3.9 million for the nine months ended June 30, 2017 from the amount reported in the Unaudited Consolidated Statement of Income that was included in the Original Financial Statements (the “Original Income Statement”). The correction also changed the amount reported under “Income tax expense” in the Original Income Statement from $503,000 to $863,000 for the three months ended June 30, 2017 and from $1.1 million to $1.9 million for the nine months ended June 30, 2017. Total Liabilities at June 30, 2017, as reported in the Unaudited Consolidated Statement of Financial Condition included in the Original Financial Statements, decreased from $911.2 million to $910.5 million, due to the decrease in Other liabilities from $4.7 million to $3.9 million. Total Shareholders’ Equity at June 30, 2017, as reported in the Unaudited Consolidated Statement of Financial Condition included in the Original Financial Statements, increased from $99.7 million to $100.4 million due to the change in Retained Earnings from $40.4 million to $41.2 million. More detailed information regarding the correction is provided below. In addition to the restatement of the Company’s unaudited consolidated financial statements, certain information within the following notes to the unaudited consolidated financial statements has been restated to reflect the corrections of errors discussed above as well as other related changes and/or to add disclosure language as appropriate. Note 4. Earnings Per Common Share Note 7. Regulatory Capital Requirements Effects of the Restatement: The following tables summarize the effect of the restatement on certain key items of the Original Financial Statements: Item 8: Financial Statement- Balance Sheet (in thousands) June 30, 2017 September 30, 2016 Original Restated Change Original Restated Change Other liabilities $ 4,697 $ 3,927 $ (770 ) $ 4,549 $ 2,983 $ (1,566 ) Total Liabilities 911,245 910,475 (770 ) 726,681 725,115 (1,566 ) Retained earnings 40,414 41,184 770 35,756 37,322 1,566 Total Shareholders’ Equity 99,663 100,433 770 94,591 96,157 1,566 Item 8: Financial Statement- Income Statement (in thousands) For the Three Months Ended June 30, 2017 For the Nine Months Ended June 30, 2017 Original Restated Change Original Restated Change Income tax expense $ 503 $ 863 $ 360 $ 1,144 $ 1,940 $ 796 Net Income 2,079 1,719 (360 ) 4,658 3,862 (796 ) Basic Earnings Per Share $ 0.32 $ 0.27 (0.05 ) $ 0.72 $ 0.60 (0.12 ) Diluted Earnings Per Share $ 0.32 $ 0.27 (0.05 ) $ 0.72 $ 0.60 (0.12 ) Item 8: Financial Statement - Comprehensive Income (in thousands) For the Three Months Ended June 30, 2017 For the Nine Months Ended June 30, 2017 Original Restated Change Original Restated Change Net Income $ 2,079 $ 1,719 $ (360 ) $ 4,658 $ 3,862 $ (796 ) Total comprehensive Income 2,027 1,667 (360 ) 4,754 3,958 (796 ) Item 8: Financial Statement - Changes in Shareholders Equity (in thousands) For the Nine Months Ended June 30, 2017 For the Nine Months Ended June 30, 2016 Original Restated Change Original Restated Change Net Income – Retained Earnings $ 4,658 $ 3,862 $ (796 ) $ 4,199 $ 4,199 $ — Net Income – Total Shareholders’ Equity 4,658 3,862 (796 ) 4,199 4,199 — Beginning Retained Earnings Balance at 35,756 37,322 1,566 23,814 25,157 1,358 Ending Retained Earnings Balance at 40,414 41,184 770 28,013 29,371 1,358 Beginning Total Shareholders’ Equity Balance at 94,591 96,157 1,566 81,391 82,749 1,358 Ending Total Shareholders’ Equity Balance at 99,663 100,433 770 86,650 88,008 1,358 Item 8: Financial Statement - Cash Flows (in thousands) Nine Months Ended June 30, 2017 Original Restated Change Net Income $ 4,658 $ 3,862 $ (796 ) Increase in other liabilities 148 944 796 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2017 | |
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 ESOP shares. Diluted earnings per share is computed based on the weighted average number of shares outstanding and common stock equivalents (“CSEs”) that would arise from the exercise of dilutive securities reduced by unearned ESOP shares. During the nine months ended June 30, 2017, the Company granted stock options to purchase 7,000 shares of common stock and 12,522 restricted shares, which are considered CSEs. For the three months ended June 30, 2017, options to purchase 7,000 shares of common stock were anti-dilutive. For the nine months ended June 30, 2017, options to purchase 7,000 shares of common stock and 9,359 restricted shares were anti-dilutive. During the nine months ended June 30, 2016, the Company granted stock options to purchase 5,000 shares of common stock and 2,240 restricted shares. The following table sets forth the composition of the weighted average shares (denominator) used in the earnings per share computations. Three Months Ended June 30, Nine Months Ended June 30, (in thousands, except for share data) 2017 2016 2017 2016 (Restated) (Restated) Net Income $ 1,719 $ 1,589 $ 3,862 $ 4,199 Weighted average shares outstanding 6,578,062 6,560,713 6,566,138 6,559,961 Average unearned ESOP shares (134,547 ) (148,947 ) (138,160 ) (152,558 ) Basic weighted average shares outstanding 6,443,515 6,411,766 6,427,978 6,407,403 Plus: effect of dilutive options and restricted shares 1,773 38 448 30 Diluted weighted average common shares outstanding 6,445,288 6,411,804 6,428,426 6,407,433 Earnings per share: Basic $ 0.27 $ 0.25 $ 0.60 $ 0.66 Diluted $ 0.27 $ 0.25 $ 0.60 $ 0.66 |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 9 Months Ended |
Jun. 30, 2017 | |
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | |
Employee Stock Ownership Plan | Note 5 – Employee Stock Ownership Plan The Company established an employee stock ownership plan (“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, 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 is being repaid principally from the Bank’s contributions to the ESOP. The loan, which bears an interest rate of 5%, is being repaid in quarterly installments through 2026. Shares are released to participants proportionately as the loan is repaid. During the three and nine months ended June 30, 2017 and 2016, there were 3,600 and 10,800 shares, respectively, committed to be released. At June 30, 2017, there were 132,765 unallocated shares and 126,453 allocated shares held by the ESOP which had an aggregate fair value of approximately $3.2 million. |
Investment Securities
Investment Securities | 9 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and at September 30, 2016. 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. 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 June 30, 2017 and September 30, 2016. June 30, 2017 Amortized Gross Gross Fair (in thousands) Investment Securities Available-for-Sale: State and municipal obligations $ 9,205 $ 65 $ (5 ) $ 9,265 Single issuer trust preferred security 1,000 — (61 ) 939 Corporate debt securities 6,633 — (276 ) 6,357 Mutual fund 250 — — 250 Total 17,088 65 (342 ) 16,811 Investment Securities Held-to-Maturity: U.S. government agencies $ 1,999 $ — $ (6 ) $ 1,993 State and municipal obligations 9,638 88 (9 ) 9,717 Corporate debt securities 3,842 — (4 ) 3,838 Mortgage-backed securities: Collateralized mortgage obligations, fixed-rate 20,548 1 (472 ) 20,077 Total $ 36,027 $ 89 $ (491 ) $ 35,625 Total investment securities $ 53,115 $ 154 $ (833 ) $ 52,436 September 30, 2016 Amortized Gross Gross Fair (in thousands) Investment Securities Available-for-Sale: State and municipal obligations $ 24,751 $ 557 $ (1 ) $ 25,307 Single issuer trust preferred security 1,000 — (122 ) 878 Corporate debt securities 40,189 347 (334 ) 40,202 Total 65,940 904 (457 ) 66,387 Investment Securities Held-to-Maturity: U.S. government agencies $ 2,999 $ 16 $ — $ 3,015 State and municipal obligations 9,826 167 (1 ) 9,992 Corporate debt securities 3,916 77 — 3,993 Mortgage-backed securities: Collateralized mortgage obligations, fixed-rate 23,810 102 (95 ) 23,817 Total $ 40,551 $ 362 $ (96 ) $ 40,817 Total investment securities $ 106,491 $ 1,266 $ (553 ) $ 107,204 For the nine months ended June 30, 2017, proceeds of available-for-sale investment securities sold amounted to approximately $48.9 million. Gross realized gains on investment securities sold amounted to approximately $432,000 for the period. For the nine months ended June 30, 2016, proceeds of investment securities sold amounted to approximately $50.5 million. Gross realized gains on investment securities sold amounted to approximately $451,000, while gross realized losses amounted to approximately $30,000 for the period. 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 June 30, 2017 and September 30, 2016: June 30, 2017 Less than 12 Months 12 Months or Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Investment Securities Available-for-Sale: State and municipal obligations $ 1,014 $ (5 ) $ — $ — $ 1,014 $ (5 ) Single issuer trust preferred security — — 939 (61 ) 939 (61 ) Corporate debt securities 3,078 (55 ) 3,279 (221 ) 6,357 (276 ) Total $ 4,092 $ (60 ) $ 4,218 $ (282 ) $ 8,310 $ (342 ) Investment Securities Held-to-Maturity: U.S. government agencies 1,993 (6 ) — — 1,993 (6 ) State and municipal obligations 2,847 (9 ) — — 2,847 (9 ) Corporate debt securities 3,838 (4 ) — — 3,838 (4 ) Mortgage-backed securities: CMO, fixed-rate 12,953 (229 ) 6,940 (243 ) 19,893 (472 ) Total 21,631 (248 ) 6,940 (243 ) 28,571 (491 ) Total investment securities $ 25,723 $ (308 ) $ 11,158 $ (525 ) $ 36,881 $ (833 ) September 30, 2016 Less than 12 Months 12 Months or Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Investment Securities Available-for-Sale: State and municipal obligations $ 501 $ (1 ) $ — $ — $ 501 $ (1 ) Single issuer trust preferred security — — 878 (122 ) 878 (122 ) Corporate debt securities 984 (9 ) 10,614 (325 ) 11,598 (334 ) Total $ 1,485 $ (10 ) $ 11,492 $ (447 ) $ 12,977 $ (457 ) Investment Securities Held-to-Maturity: State and municipal obligations 1,193 (1 ) — — 1,193 (1 ) Mortgage-backed securities: CMO, fixed-rate 4,342 (17 ) 6,283 (78 ) 10,625 (95 ) Total 5,535 (18 ) 6,283 (78 ) 11,818 (96 ) Total investment securities $ 7,020 $ (28 ) $ 17,775 $ (525 ) $ 24,795 $ (553 ) As of June 30, 2017, the estimated fair value of the securities disclosed above was primarily dependent upon the movement in market interest rates, particularly given the negligible inherent credit risk associated with these securities. These investment securities are comprised of securities that are rated investment grade by at least one bond credit rating service. Although the fair value will fluctuate as market interest rates move, management believes that these fair values will recover as the underlying portfolios mature and are reinvested in market rate yielding investments. As of June 30, 2017, the Company held two U.S. government agency securities, four municipal bonds, four corporate securities, 36 mortgage-backed securities and one single issuer trust preferred security which were in an unrealized loss position. The Company does not intend to sell and expects that it is not more likely than not that it will be required to sell these securities until such time as the value recovers or the securities mature. Management does not believe any individual unrealized loss as of June 30, 2017 represents other-than-temporary impairment. Investment securities having a carrying value of approximately $493,000 and $552,000 at June 30, 2017 and September 30, 2016, respectively, were pledged to secure public deposits. The following table presents information for investment securities at June 30, 2017, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. June 30, 2017 Amortized Cost Fair Value (in thousands) Investment Securities Available-for-Sale: Due in one year or less $ — $ — Due after one year through five years 2,836 2,841 Due after five years through ten years 10,593 10,343 Due after ten years 3,659 3,627 Total $ 17,088 $ 16,811 Investment Securities Held-to-Maturity: Due after one year through five years $ 1,999 $ 1,992 Due after five years through ten years 5,861 5,918 Due after ten years 28,167 27,715 Total $ 36,027 $ 35,625 Total investment securities $ 53,115 $ 52,436 |
Loans Receivable and Related Al
Loans Receivable and Related Allowance for Loan Losses | 9 Months Ended |
Jun. 30, 2017 | |
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 consisted of the following at the dates indicated below: June 30, September 30, 2017 2016 (in thousands) Residential mortgage $ 190,788 $ 209,186 Construction and Development: Residential and commercial 36,530 18,579 Land 18,325 10,013 Total Construction and Development 54,855 28,592 Commercial: Commercial real estate 424,732 231,439 Farmland 1,734 — Multi-family 21,547 19,515 Other 71,248 38,779 Total Commercial 519,261 289,733 Consumer: Home equity lines of credit 17,602 19,757 Second mortgages 23,658 29,204 Other 1,403 1,914 Total Consumer 42,663 50,875 Total loans 807,567 578,386 Deferred loan fees and cost, net 687 1,208 Allowance for loan losses (7,917 ) (5,434 ) Total loans receivable, net $ 800,337 $ 574,160 The following tables summarize the primary classes of the allowance for loan losses (“ALLL”), segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2017 and September 30, 2016. Activity in the allowance is presented for the three and nine months ended June 30, 2017 and 2016 and the year ended September 30, 2016, respectively. Three Months Ended June 30, 2017 Construction and Commercial Consumer Residential Mortgage Residential and Commercial Land Commercial Real Estate Farmland Multi-family Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total (in thousands) Allowance for loan losses: Beginning balance $ 1,042 $ 1,343 $ 128 $ 2,479 $ — $ 67 $ 369 $ 107 $ 415 $ 20 $ 1,211 $ 7,181 Charge-offs — — — — — — — — (64 ) — — (64 ) Recoveries 2 — — 9 — — 2 15 123 4 — 155 Provision (Credit) (24 ) (660 ) 18 218 10 45 35 (25 ) (98 ) (7 ) 1,133 645 Ending Balance $ 1,020 $ 683 $ 146 $ 2,706 $ 10 $ 112 $ 406 $ 97 $ 376 $ 17 $ 2,344 $ 7,917 Three Months Ended June 30, 2016 Construction and Development Commercial Consumer Residential Residential and Commercial Land Commercial Real Estate Multi-family Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total (in thousands) Allowance for loan losses: Beginning balance $ 1,399 $ 74 $ 106 $ 1,529 $ 151 $ 193 $ 133 $ 580 $ 29 $ 743 $ 4,937 Charge-offs — (91 ) — — — — — — (11 ) — (102 ) Recoveries (23 ) 39 — — — — 1 15 4 — 36 Provision (Credit) (150 ) 236 16 266 (13 ) (37 ) (9 ) (72 ) 10 225 472 Ending Balance $ 1,226 $ 258 $ 122 $ 1,795 $ 138 $ 156 $ 125 $ 523 $ 32 $ 968 $ 5,343 Nine Months Ended June 30, 2017 Construction and Commercial Consumer Residential Mortgage Residential and Commercial Land Commercial Real Estate Farmland Multi-family Other Home Equity Lines of Credit Second Other Unallocated Total (in thousands) Allowance for loan losses: Beginning balance $ 1,201 $ 199 $ 97 $ 1,874 $ — $ 109 $ 158 $ 116 $ 467 $ 34 $ 1,179 $ 5,434 Charge-offs — — — — — — — — (185 ) (5 ) — (190 ) Recoveries 2 90 — 39 — — 8 17 205 10 — 371 Provisions (183 ) 394 49 793 10 3 240 (36 ) (111 ) (22 ) 1,165 2,302 Ending Balance $ 1,020 $ 683 $ 146 $ 2,706 $ 10 $ 112 $ 406 $ 97 $ 376 $ 17 $ 2,344 $ 7,917 Ending balance: $ — $ — $ — $ — $ — $ — $ 112 $ — $ 70 $ — $ — $ 182 Ending balance: $ 1,020 $ 683 $ 146 $ 2,706 $ 10 $ 112 $ 294 $ 97 $ 306 $ 17 $ 2,344 $ 7,735 Loans receivable: Ending balance $ 190,788 $ 36,530 $ 18,325 $ 424,732 $ 1,734 $ 21,547 $ 71,248 $ 17,602 $ 23,658 $ 1,403 $ 807,567 Ending balance: $ 2,089 $ 97 $ — $ 744 $ — $ — $ 246 $ 10 $ 219 $ — $ 3,405 Ending balance: $ 188,699 $ 36,433 $ 18,325 $ 423,988 $ 1,734 $ 21,547 $ 71,002 $ 17,592 $ 23,439 $ 1,403 $ 804,162 Nine Months Ended June 30, 2016 Construction and Development Commercial Consumer Residential Mortgage Residential and Commercial Land Commercial Real Estate Multi-family Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total (in thousands) Allowance for loan losses: Beginning balance $ 1,486 $ 30 $ 35 $ 1,235 $ 104 $ 108 $ 139 $ 761 $ 24 $ 745 $ 4,667 Charge-offs (9 ) (91 ) — (99 ) — — — (255 ) (54 ) — (508 ) Recoveries 17 243 — 3 — 2 1 59 12 — 337 Provisions (268 ) 76 87 656 34 46 (15 ) (42 ) 50 223 847 Ending Balance $ 1,226 $ 258 $ 122 $ 1,795 $ 138 $ 156 $ 125 $ 523 $ 32 $ 968 $ 5,343 Ending balance: $ — $ — $ — $ — $ — $ — $ — $ 24 $ — $ — $ 24 Ending balance: $ 1,226 $ 258 $ 122 $ 1,795 $ 138 $ 156 $ 125 $ 499 $ 32 $ 968 $ 5,319 Loans receivable: Ending balance $ 210,621 $ 14,050 $ 9,904 $ 211,516 $ 20,102 $ 37,091 $ 21,035 $ 31,752 $ 2,088 $ 558,159 Ending balance: $ 787 $ 109 $ — $ 1,850 $ — $ — $ 20 $ 232 $ — $ 2,998 Ending balance: $ 209,834 $ 13,941 $ 9,904 $ 209,666 $ 20,102 $ 37,091 $ 21,015 $ 31,520 $ 2,088 $ 555,161 Year Ended September 30, 2016 Construction and Development Commercial Consumer Residential Residential and Commercial Land Commercial Real Estate Multi-family Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total (In thousands) Allowance for loan losses: Beginning balance $ 1,486 $ 30 $ 35 $ 1,235 $ 104 $ 108 $ 139 $ 761 $ 24 $ 745 $ 4,667 Charge-offs (9 ) (91 ) — (99 ) — — — (291 ) (70 ) — (560 ) Recoveries 17 243 — 3 — 3 1 100 13 — 380 Provisions (293 ) 17 62 735 5 47 (24 ) (103 ) 67 434 947 Ending Balance $ 1,201 $ 199 $ 97 $ 1,874 $ 109 $ 158 $ 116 $ 467 $ 34 $ 1,179 $ 5,434 Ending balance: $ — $ — $ — $ — $ — $ — $ — $ 23 $ — $ — $ 23 Ending balance: $ 1,201 $ 199 $ 97 $ 1,874 $ 109 $ 158 $ 116 $ 444 $ 34 $ 1,179 $ 5,411 Loans receivable: Ending balance $ 209,186 $ 18,579 $ 10,013 $ 231,439 $ 19,515 $ 38,779 $ 19,757 $ 29,204 $ 1,914 $ 578,386 Ending balance: $ 1,159 $ 109 $ — $ 2,039 $ — $ — $ 74 $ 277 $ — $ 3,658 Ending balance: $ 208,027 $ 18,470 $ 10,013 $ 229,400 $ 19,515 $ 38,779 $ 19,683 $ 28,927 $ 1,914 $ 574,728 The following table presents impaired loans in 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 June 30, 2017 and September 30, 2016. Impaired Loans With Impaired Total Impaired Loans Recorded Related Recorded Recorded Unpaid (In thousands) June 30, 2017: Residential mortgage $ — $ — $ 2,089 $ 2,089 $ 2,222 Construction and Development: Residential and commercial — — 97 97 97 Commercial: Commercial real estate — — 744 744 754 Other 246 112 — 246 246 Consumer: Home equity lines of credit — — 10 10 11 Second mortgages 112 70 107 219 247 Total impaired loans $ 358 $ 182 $ 3,047 $ 3,405 $ 3,577 September 30, 2016: Residential mortgage $ — $ — $ 1,159 $ 1,159 $ 1,225 Construction and Development: Residential and commercial — — 109 109 109 Commercial: Commercial real estate — — 2,039 2,039 2,039 Consumer: Home equity lines of credit — — 74 74 90 Second mortgages 31 23 246 277 451 Total impaired loans $ 31 $ 23 $ 3,627 $ 3,658 $ 3,914 The following table presents the average recorded investment in impaired loans in portfolio and related interest income recognized for three and nine months ended June 30, 2017 and 2016. Three Months Ended June 30, 2017 Nine Months Ended June 30, 2017 (in thousands) Average Impaired Loans Interest Income Recognized on Impaired Loans Average Impaired Loans Interest Income Recognized on Impaired Loans Residential mortgage $ 2,099 $ 10 $ 2,091 $ 43 Construction and Development: Residential and commercial 104 2 107 4 Commercial: Commercial real estate 747 6 1,038 14 Other 248 2 111 2 Consumer: Home equity lines of credit 10 — 47 — Second mortgages 205 1 190 2 Total $ 3,413 $ 21 $ 3,584 $ 65 Three Months Ended June 30, 2016 Nine Months Ended June 30, 2016 (in thousands) Average Impaired Loans Interest Income Recognized on Impaired Loans Average Impaired Loans Interest Income Recognized on Impaired Loans Residential mortgage $ 712 $ — $ 641 $ — Construction and Development: Residential and commercial 251 1 164 3 Commercial: Commercial real estate 1,593 17 1,534 48 Consumer: Home equity lines of credit 20 — 20 — Second mortgages 222 — 204 — Total $ 2,798 $ 18 $ 2,563 $ 51 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 June 30, 2017 and September 30, 2016. June 30, 2017 Pass Special Substandard Doubtful Total (in thousands) Residential mortgage $ 188,265 $ 116 $ 2,407 $ — $ 190,788 Construction and Development: Residential and commercial 36,433 — 97 — 36,530 Land 12,537 — 5,788 — 18,325 Commercial: Commercial real estate 417,197 5,361 2,174 — 424,732 Farmland 1,734 — — — 1,734 Multi-family 21,179 368 — — 21,547 Other 70,346 — 902 — 71,248 Consumer: Home equity lines of credit 17,492 — 110 — 17,602 Second mortgages 22,886 114 658 — 23,658 Other 1,396 7 — — 1,403 Total $ 789,465 $ 5,966 $ 12,136 $ — $ 807,567 September 30, 2016 Pass Special Substandard Doubtful Total (in thousands) Residential mortgage $ 207,880 $ 122 $ 1,184 $ — $ 209,186 Construction and Development: Residential and commercial 18,470 — 109 — 18,579 Land 10,013 — — — 10,013 Commercial: Commercial real estate 221,742 4,990 4,707 — 231,439 Multi-family 19,303 212 — — 19,515 Other 37,848 259 672 — 38,779 Consumer: Home equity lines of credit 19,584 — 173 — 19,757 Second mortgages 27,843 119 1,242 — 29,204 Other 1,903 11 — — 1,914 Total $ 564,586 $ 5,713 $ 8,087 $ — $ 578,386 The following table presents loans that are no longer accruing interest by portfolio class. June 30, September 30, 2017 2016 (in thousands) Residential mortgage $ 1,225 $ 1,072 Commercial: Commercial real estate 184 193 Consumer: Home equity lines of credit 10 74 Second mortgages 137 278 Total non-accrual loans $ 1,556 $ 1,617 Under the Bank’s loan policy, once a loan has been placed on non-accrual status, we do not resume interest accruals until the loan has been brought current and has maintained a current payment status for not less than six consecutive months. Interest income that would have been recognized on nonaccrual loans had they been current in accordance with their original terms was approximately $6,000 and $12,000 for the three months ended June 30, 2017 and 2016, respectively, and was $33,000 and $29,000 for the nine months ended June 30, 2017 and 2016, respectively. At June 30, 2017 and September 30, 2016 there were approximately $321,000 and $696,000, respectively, of loans past due 90 days or more and still accruing interest. 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 June 30, 2017 and September 30, 2016. Current 30-59 60-89 90 Total Past Due Total Loans Receivable Accruing 90 (in thousands) June 30, 2017: Residential mortgage $ 186,017 $ 2,968 $ 673 $ 1,130 $ 4,771 $ 190,788 $ 184 Construction and Development: Residential and commercial 36,530 — — — — 36,530 — Land 18,325 — — — — 18,325 — Commercial: Commercial real estate 424,181 551 — — 551 424,732 — Farmland 1,734 — — — — 1,734 — Multi-family 21,547 — — — — 21,547 — Other 71,248 — — — — 71,248 — Consumer: Home equity lines of credit 17,359 132 111 — 243 17,602 — Second mortgages 22,590 764 104 200 1,068 23,658 137 Other 1,402 — 1 — 1 1,403 — Total $ 800,933 $ 4,415 $ 889 $ 1,330 $ 6,634 $ 807,567 $ 321 Current 30-59 60-89 90 Total Past Due Total Loans Receivable Accruing 90 (in thousands) September 30, 2016: Residential mortgage $ 204,816 $ 1,750 $ 1,345 $ 1,275 $ 4,370 $ 209,186 $ 509 Construction and Development: Residential and commercial 18,579 — — — — 18,579 — Land 10,013 — — — — 10,013 — Commercial: Commercial real estate 231,059 — — 380 380 231,439 187 Multi-family 19,515 — — — — 19,515 — Other 38,433 346 — — 346 38,779 — Consumer: Home equity lines of credit 19,513 170 43 31 244 19,757 — Second mortgages 27,933 473 566 232 1,271 29,204 — Other 1,913 1 — — 1 1,914 — Total $ 571,774 $ 2,740 $ 1,954 $ 1,918 $ 6,612 $ 578,386 $ 696 Restructured loans deemed to be troubled debt restructurings (“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 eleven and seven loans classified as TDRs with an aggregate outstanding balance of $2.0 million and $2.2 million at June 30, 2017 and September 30, 2016, respectively. At June 30, 2017, these loans were also classified as impaired. Eight of the TDR loans continue to perform under the restructured terms through June 30, 2017 and we continued to accrue interest on such loan through such date. The decrease in TDRs at June 30, 2017 compared to September 30, 2016 was primarily due to two commercial loans, with an aggregate outstanding balance of approximately $1.3 million being paid off during the first nine months of fiscal 2017. The decrease was offset by two residential mortgage loans with an aggregate outstanding balance of $653,000 and one second mortgage loan with an outstanding balance of approximately $54,000 being classified as performing TDRs during the first nine months of fiscal 2017. In addition, one residential mortgage loan with an outstanding balance of $225,000, one commercial real estate loan with an outstanding balance of $184,000 and one second mortgage loan with an outstanding balance of approximately $23,000 were classified as non-performing TDRs during the first nine months of fiscal 2017. All of such loans have been classified as TDRs since we modified the payment terms and in some cases interest rate from the original agreements and allowed the borrowers, who were experiencing financial difficulty, to make interest only payments for a period of time in order to relieve some of their overall cash flow burden. Some loan modifications classified as TDRs may not ultimately result in the full collection of principal and interest, as modified, and 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 for purposes of this disclosure occurs when the borrower is 90 days past due or a foreclosure or repossession of the applicable collateral has occurred. Problem loans may arise in which, due to financial difficulties experienced by the borrower, the Company obtains through physical possession one or more collateral assets in satisfaction of all or part of an existing credit. Once possession is obtained, the Company reclassifies the appropriate portion of the remaining balance of the credit from loans to OREO, which is included within other assets in the Consolidated Statements of Financial Condition. For any residential real estate property collateralizing a consumer mortgage loan, the Company is considered to possess the related collateral only if legal title is obtained upon completion of foreclosure, or the borrower conveys all interest in the residential real estate property to the Company through completion of a deed in lieu of foreclosure or similar legal agreement. The Company had $579,000 and $141,000 of residential real estate properties in the process of foreclosure at June 30, 2017 and September 30, 2016, respectively. The following table presents our TDR loans as of June 30, 2017 and September 30, 2016. Total Troubled Debt Troubled Debt Restructured Number of Recorded Number of Recorded (Dollars in thousands) At June 30, 2017: Residential mortgage 5 $ 1,117 1 $ 225 Construction and Development: Residential and commercial 1 97 — — Commercial: Commercial real estate 3 744 1 184 Consumer: Second mortgages 2 77 1 23 Total 11 $ 2,035 3 $ 432 At September 30, 2016: Residential mortgage 2 $ 224 1 $ 139 Construction and Development: Residential and commercial 1 109 — — Commercial: Commercial real estate 4 1,845 — — Total 7 $ 2,178 1 $ 139 The following table reports the performing status all of TDR loans. The performing status is determined by the loans’ compliance with the modified terms. June 30, 2017 September 30, 2016 Performing Non-Performing Performing Non-Performing (In thousands) Residential mortgage $ 892 $ 225 $ 85 $ 139 Construction and Development: Residential and commercial 97 — 109 — Commercial: Commercial real estate 560 184 1,845 — Consumer: Second mortgages 54 23 — — Total $ 1,603 $ 432 $ 2,039 $ 139 The following table shows the activity in loans which were first deemed to be TDRs during the three and nine months ended June 30, 2017 and 2016. For the Three Months Ended June 30, 2017 2016 Restructured During Period Number of Loans Pre-Modifications Outstanding Post-Modifications Outstanding Number of Loans Pre-Modifications Outstanding Recorded Investments Post-Modifications Outstanding Recorded Investments (In thousands) Troubled Debt Restructurings: Commercial: Commercial real estate — $ — $ — 1 $ 386 $ 386 Total — $ — $ — 1 $ 386 $ 386 For the Nine Months Ended June 30, 2017 2016 Restructured During Period Number of Loans Pre-Modifications Outstanding Recorded Investments Post-Modifications Outstanding Recorded Number of Loans Pre-Modifications Outstanding Recorded Investments Post-Modifications Outstanding Recorded Investments (In thousands) Troubled Debt Restructurings: Residential mortgage 3 $ 889 $ 889 — $ — $ — Commercial: Commercial real estate 1 193 193 1 386 386 Consumer: Second mortgages 2 81 81 — — — Total 6 $ 1,163 $ 1,163 1 $ 386 $ 386 |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Note 8 - Regulatory Matters 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 July of 2013, the respective U.S. federal banking agencies issued final rules implementing Basel III and the Dodd-Frank Act capital requirements to be fully phased in on a global basis on January 1, 2019. The new regulations establish a new tangible common equity capital requirement, increase the minimum requirement for the current Tier 1 risk-weighted asset (“RWA”) ratio, phase out certain kinds of intangibles treated as capital and certain types of instruments and change the risk weightings of certain assets used to determine required capital ratios. The new common equity Tier 1 capital component requires capital of the highest quality – predominantly composed of retained earnings and common stock instruments. For community banks such as Malvern Federal Savings Bank, a common equity Tier 1 capital ratio of 4.5% became effective on January 1, 2015. The new capital rules also increased the minimum Tier 1 capital ratio from 4.0% to 6.0% beginning on January 1, 2015. The rules also establish a capital conservation buffer of 2.5% above the new regulatory minimum capital requirements, which must consist entirely of common equity Tier 1 capital and would result in the following minimum ratios: (1) a common equity Tier 1 capital ratio of 7.0%, (2) a Tier 1 capital ratio of 8.5%, and (3) a total capital ratio of 10.5%. The new capital conservation buffer requirement was phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase by that amount each year until fully implemented in January 2019. An institution is also subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions. 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 June 30, 2017, 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 subordinated debentures were structured to qualify as Tier 2 capital for regulatory purposes. The following table summarizes the Company’s compliance with applicable regulatory capital requirements as of June 30, 2017 and September 30, 2016: To Be Well Capitalized (Restated) For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio As of June 30, 2017: Tier 1 Leverage (to average assets) $ 98,085 10.05 % $ 39,026 4.00 % $ 48,783 5.00 % Common Equity Tier 1 Capital (to risk weighted assets) 98,085 12.38 % 35,646 4.50 % 51,489 6.50 % Tier 1 Capital (to risk weighted assets) 98,085 12.38 % 47,529 6.00 % 63,371 8.00 % Total Capital (to risk weighted assets) 130,327 16.45 % 63,371 8.00 % 79,214 10.00 % As of September 30, 2016: Tier 1 Leverage (to average assets) $ 91,876 11.64 % $ 31,561 4.00 % $ 39,452 5.00 % Common Equity Tier 1 Capital (to risk weighted assets) 91,876 15.37 % 26,894 4.50 % 38,847 6.50 % Tier 1 Capital (to risk weighted assets) 91,876 15.37 % 35,859 6.00 % 47,812 8.00 % Total Capital (to risk weighted assets) 97,372 16.29 % 47,812 8.00 % 59,765 10.00 % The following table summarizes the Bank’s compliance with applicable regulatory capital requirements as of June 30, 2017 and September 30, 2016: To Be Well Capitalized (Restated) For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio As of June 30, 2017: Tier 1 Leverage (to average assets) $ 116,795 11.99 % $ 38,980 4.00 % $ 48,725 5.00 % Common Equity Tier 1 Capital (to risk weighted assets) 116,795 14.79 % 35,532 4.50 % 51,324 6.50 % Tier 1 Capital (to risk weighted assets) 116,795 14.79 % 47,376 6.00 % 63,168 8.00 % Total Capital (to risk weighted assets) 124,775 15.80 % 63,168 8.00 % 78,960 10.00 % As of September 30, 2016: Tier 1 Leverage (to average assets) $ 86,596 10.98 % $ 31,533 4.00 % $ 39,417 5.00 % Common Equity Tier 1 Capital (to risk weighted assets) 86,596 14.50 % 26,875 4.50 % 38,820 6.50 % Tier 1 Capital (to risk weighted assets) 86,596 14.50 % 35,834 6.00 % 47,779 8.00 % Total Capital (to risk weighted assets) 92,092 15.42 % 47,779 8.00 % 59,723 10.00 % |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Note 9 – Derivatives and Hedging Activities The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future uncertain cash amounts, the value of which are determined by interest rates. The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Income (Loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. At June 30, 2017, such derivatives were used to hedge the variable cash flows associated with FHLB advances. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company’s derivatives did not have any hedge ineffectiveness recognized in earnings during the three and nine months ended June 30, 2017 and 2016. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next twelve months, the Company estimates approximately $27,000 to be reclassified to earnings as an increase to interest expense. The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of twenty months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of June 30, 2017 and September 30, 2016: June 30, 2017 Notional Amount Fair Value Balance Sheet Location Expiration Date (dollars in thousand) Derivatives designated as hedging instruments Interest rate swaps by effective date: August 3, 2015 $ 15,000 $ 23 Other liabilities August 3, 2020 February 5, 2016 20,000 350 Other assets February 1, 2021 September 30, 2016 Notional Amount Fair Value Balance Sheet Location Expiration Date (dollars in thousand) Derivatives designated as hedging instruments Interest rate swaps by effective date: August 3, 2015 $ 15,000 $ 394 Other liabilities August 3, 2020 February 5, 2016 20,000 148 Other liabilities February 1, 2021 The tables below presents the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the three and nine months ended June 30, 2017 and 2016. For the Three Months Ended June 30, 2017 Amount of Gain Amount of Gain Amount of Gain (Loss) (in thousands) August 3, 2015 $ (70 ) $ (25 ) $ — February 5, 2016 (113 ) (8 ) — For the Nine Months Ended June 30, 2017 Amount of Gain Amount of Gain Amount of Gain (Loss) (in thousands) August 3, 2015 $ 280 $ (91 ) $ — February 5, 2016 451 (47 ) — For the Three Months Ended June 30, 2016 Amount of Gain Amount of Gain Amount of Gain (Loss) (in thousands) August 3, 2015 $ (139 ) $ (44 ) $ — February 5, 2016 (215 ) (34 ) — For the Nine Months Ended June 30, 2016 Amount of Gain Amount of Gain Amount of Gain (Loss) (in thousands) August 3, 2015 $ (383 ) $ (148 ) $ — February 5, 2016 (381 ) (55 ) — 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 June 30, 2017, the fair value of derivatives was in a net asset position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was zero. At September 30, 2016, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $586,000. At June 30, 2017 and September 30, 2016, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of zero and $800,000, respectively, against its obligations under these agreements. If the Company had breached any of these provisions at June 30, 2017 or at September 30, 2016, 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 | 9 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10 - 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. 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. FASB ASC Topic 825 “Financial Instruments” provides an option to elect fair value as an alternative measurement for selected financial assets and financial liabilities not previously recorded at fair value. The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. The Company monitors and evaluates available data to perform fair value measurements on an ongoing basis and recognizes transfers among the levels of the fair value hierarchy as of the date event or a change in circumstances that affects the valuation method chosen. There were no changes in valuation technique or transfers between levels at June 30, 2017 or September 30, 2016. The table below presents the balances of assets and liabilities measured at fair value on a recurring basis: June 30, 2017 Total Level 1 Level 2 Level 3 (in thousands) Assets: Investment securities available-for-sale: Debt securities: State and municipal obligations $ 9,265 $ — $ 9,265 $ — Single issuer trust preferred security 939 — 939 — Corporate debt securities 6,357 — 6,357 — Mutual fund 250 250 — — Total investment securities available-for-sale 16,811 250 16,561 — Derivative instruments $ 350 $ — $ 350 $ — Liabilities: Derivative instruments $ 23 $ — $ 23 $ — September 30, 2016 Total Level 1 Level 2 Level 3 (in thousands) Assets: Investment securities available-for-sale: Debt securities: State and municipal obligations $ 25,307 $ — $ 25,307 $ — Single issuer trust preferred security 878 — 878 — Corporate debt securities 40,202 — 40,202 — Total investment securities available-for-sale 66,387 — 66,387 — Liabilities: Derivative instruments $ 542 $ — $ 542 $ — For assets measured at fair value on a nonrecurring basis 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 June 30, 2017 and September 30, 2016: June 30, 2017 Total Level 1 Level 2 Level 3 (in thousands) Impaired loans (1) $ 176 $ — $ — $ 176 Total $ 176 $ — $ — $ 176 June 30, 2017 Fair Value at June 30, 2017 Valuation Technique Unobservable Input Range/(Weighted Average) (dollars in thousands) Impaired loans (1) $ 176 Appraisal of collateral (2) Collateral discounts (3) 0%/(0%) Total $ 176 (1) At June 30, 2017, consisted of four loans with an aggregate balance of $358,000 and with $182,000 in specific loan loss allowance. (2) Fair value is generally determined through independent appraisals of the underlying collateral primarily using comparable sales. (3) Appraisals may be adjusted by management for qualitative factors such as time, changes in economic conditions and estimated liquidation expense. September 30, 2016 Total Level 1 Level 2 Level 3 (in thousands) Impaired loans (1) $ 8 $ — $ — $ 8 Total $ 8 $ — $ — $ 8 September 30, 2016 Fair Value at September 30, 2016 Valuation Technique Unobservable Input Range/(Weighted Average) (dollars in thousands) Impaired loans (1) $ 8 Appraisal of collateral (2) Collateral discounts (3) 0%/(0%) Total $ 8 (1) At September 30, 2016, consisted of one loan with an aggregate balance of $31,000 and with $23,000 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. During the nine months ended June 30, 2017 and 12 months ended September 30, 2016, the Company did not have any additions to our mortgage servicing assets. During the nine months ended June 30, 2017 and 12 months ended September 30, 2016, the Company only sold loans with servicing released. The following disclosure of the estimated fair value of financial instruments is made in accordance with the requirements of FASB ASC 825. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methods. However, considerable judgment is necessarily required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company would realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. FASB ASC 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The fair value estimates presented herein are based on pertinent information available to management as of June 30, 2017 and September 30, 2016. 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 June 30, 2017 and September 30, 2016 and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. The following assumptions were used to estimate the fair value of the Company’s financial instruments: Cash and Cash Equivalents —These assets are carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization. Investment Securities — Investment and mortgage-backed securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) 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. The fair value of the Level 1 security was $250,000 as of June 30, 2017 and zero as of September 30, 2016.The Company had no Level 3 securities as of June 30, 2017 or September 30, 2016. Loans Receivable —We do not record loans at fair value on a recurring basis. As such, valuation techniques discussed herein for loans are primarily for estimating fair value for FASB ASC 825 disclosure purposes. However, from time to time, we record nonrecurring fair value adjustments to loans to reflect partial write-downs for impairment or the full charge-off of the loan carrying value. The valuation of impaired loans is discussed below. The fair value estimate for FASB ASC 825 purposes differentiates loans based on their financial characteristics, such as product classification, loan category, pricing features and remaining maturity. Prepayment and credit loss estimates are evaluated by loan type and rate. The fair value of loans is estimated by discounting contractual cash flows using discount rates based on current industry pricing, adjusted for prepayment and credit loss estimates. Impaired Loans — Impaired loans are valued utilizing independent appraisals that rely upon quoted market prices for similar assets in active markets. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience. The appraisals are adjusted downward by management, as necessary, for changes in relevant valuation factors subsequent to the appraisal date and are considered level 3 inputs. Accrued Interest Receivable —This asset is carried at historical cost. The carrying amount is a reasonable estimate of fair value because of the relatively short time between the origination of the instrument and its expected realization. Restricted Stock —Although restricted stock is an equity interest in the FHLB, it is carried at cost because it does not have a readily determinable fair value as its ownership is restricted and it lacks a market. The estimated fair value approximates the carrying amount. Other Real Estate Owned —Assets acquired through foreclosure or deed in lieu of foreclosure are recorded at estimated fair value less estimated selling costs when acquired, thus establishing a new cost basis. Fair value is generally based on independent appraisals. These appraisals include adjustments to comparable assets based on the appraisers’ market knowledge and experience, and are considered level 3 inputs. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for loan losses. If the estimated fair value of the asset declines, a write-down is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of, among other factors, changes in the economic conditions. Deposits —Deposit liabilities are carried at cost. As such, valuation techniques discussed herein for deposits are primarily for estimating fair value for FASB ASC 825 disclosure purposes. The fair value of deposits is discounted based on rates available for borrowings of similar maturities. A decay rate is estimated for non-time deposits. The discount rate for non-time deposits is adjusted for servicing costs based on industry estimates. Long-Term 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. Short-Term Borrowings —Short-term borrowings that mature within six months and securities sold under agreements to repurchase have fair values which approximate carrying value. Subordinated Debt —The fair value of subordinated debentures is estimated by discounting the estimated future cash flows, using market discount rates of financial instruments with similar characteristics, terms and remaining maturity. 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. Because commitments to extend credit and letters of credit are generally unassignable by either the Bank or the borrower, they only have value to the Company and the borrower. The estimated fair value approximates the recorded deferred fee amounts, which are not significant. Mortgage Servicing Rights —The fair value of mortgage servicing rights is based on observable market prices when available or the present value of expected future cash flows when not available. Assumptions, such as loan default rates, costs to service, and prepayment speeds significantly affect the estimate of future cash flows. Mortgage servicing rights are carried at the lower of cost or fair value. The carrying amount and estimated fair value of the Company’s financial instruments as of June 30, 2017 and September 30, 2016 are presented below: Carrying Amount Fair Value Level 1 Level 2 Level 3 (in thousands) June 30, 2017: Financial assets: Cash and cash equivalents $ 113,427 $ 113,427 $ 113,427 $ — $ — Investment securities available-for-sale 16,811 16,811 250 16,561 — Investment securities held-to-maturity 36,027 35,625 — 35,625 — Loans receivable, net (including impaired loans) 800,337 801,893 — — 801,893 Accrued interest receivable 2,837 2,837 — 2,837 — Restricted stock 5,458 5,458 — 5,458 — Mortgage servicing rights (included in Other Assets) 282 279 — 279 — Derivatives (included in Other Assets) 350 350 — 350 — Financial liabilities: Savings accounts 43,709 43,709 — 43,709 — Checking and NOW accounts 155,536 155,536 — 155,536 — Money market accounts 274,018 274,018 — 274,018 — Certificates of deposit 286,416 288,367 — 288,367 — FHLB advances 118,000 118,694 — 118,694 — Subordinated debt 24,263 24,263 — 24,263 — Derivatives (included in Other Liabilities) 23 23 — 23 — Accrued interest payable 1,060 1,060 — 1,060 — September 30, 2016: Financial assets: Cash and cash equivalents $ 96,762 $ 96,762 $ 96,762 $ — $ — Investment securities available-for-sale 66,387 66,387 — 66,387 — Investment securities held-to-maturity 40,551 40,817 — 40,817 — Loans receivable, net (including impaired loans) 574,160 589,844 — — 589,844 Accrued interest receivable 2,558 2,558 — 2,558 — Restricted stock 5,424 5,424 — 5,424 — Mortgage servicing rights (included in Other Assets) 328 308 — 308 — Financial liabilities: Savings accounts 44,714 44,714 — 44,714 Checking and NOW accounts 129,588 129,588 — 129,588 — Money market accounts 177,486 177,486 — 177,486 — Certificates of deposit 250,258 252,232 — 252,232 — FHLB advances 118,000 119,946 — 119,946 — Derivatives (included in Other Liabilities) 542 542 — 542 — Accrued interest payable 427 427 — 427 — |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 – Income Taxes (As Restated) 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. For the three and nine months ended June 30, 2017, the Company recorded income tax expense of $863,000 and $1.9 million, respectively, compared to no income tax expense for the three and nine months ended June 30, 2016. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Note 12 – Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) included in shareholders’ equity are as follows: June 30, September 30, 2017 2016 (In thousands) Net unrealized holding (losses) gains on available-for-sale securities $ (277 ) $ 447 Tax effect 94 (152 ) Net of tax amount (183 ) 295 Fair value adjustments on derivatives 327 (542 ) Tax effect (111 ) 184 Net of tax amount 216 (358 ) Total accumulated other comprehensive income (loss) $ 33 $ (63 ) Other comprehensive income and related tax effects are presented in the following table: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2017 2016 2017 2016 Net unrealized holding gains (losses) on available-for-sale securities $ 446 $ 972 $ (299 ) $ 2,111 Net realized gains on securities available-for-sale (374 ) (229 ) (432 ) (421 ) Accretion of unrealized holding losses on securities available-for-sale transferred to held-to-maturity 2 3 7 7 Fair value adjustments on derivatives (151 ) (278 ) 868 (527 ) Other comprehensive (loss) income before taxes (77 ) 468 144 1,170 Tax effect 25 (159 ) (48 ) (292 ) Total comprehensive (loss) income $ (52 ) $ 309 $ 96 $ 878 |
Equity Based Incentive Compensa
Equity Based Incentive Compensation Plan | 9 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Based Incentive Compensation Plan | Note 13 – Equity Based Incentive Compensation Plan The Company maintains the Malvern Bancorp, Inc. 2014 Long-Term Incentive Compensation Plan (the “2014 Plan”), which permits the grant of long-term incentive and other stock and cash awards. The purpose of the 2014 Plan is to promote the success of the Company and the Bank by providing incentives to officers, employees and directors of the Company and the Bank that will link their personal interests to the financial success of the Company and to growth in shareholder value. The maximum total number of shares of the Company’s common stock available for grants under the 2014 Plan is 400,000. As of June 30, 2017, there were 374,789 remaining shares available for future grants. Restricted stock and option awards granted vest in 20% increments beginning on the one year anniversary of the grant date, and accelerate upon a change in control of the Company. The options generally expire ten years from the date of grant. All issuances are subject to forfeiture if the recipient leaves or is terminated prior to the award’s vesting. Shares of restricted stock have the same dividend and voting rights as common stock while options do not. All awards are issued at fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant. During the nine months ended June 30, 2017 and 2016, stock options covering a total of 7,000 and 5,000 shares of common stock, respectively, were granted. The compensation expense related to stock options for the three and nine months ended June 30, 2017 was $3,000 and $5,000, respectively. During the nine months ended June 30, 2017 and 2016, a total of 12,522 and 2,200 restricted shares, respectively, were awarded. The compensation expense related to restricted stock awards for the three and nine months ended June 30, 2017 was $87,000 and $88,000, respectively. 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 that have been granted, but are not considered by the model. Accordingly, while management believes that the Black-Scholes option-pricing model provides a reasonable estimate of fair value, the model does not necessarily provide the best single measure of fair value for the Company’s employee stock options. Stock option activity as of June 30, 2017 and changes during the nine months ended June 30, 2017 were as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding, beginning of fiscal year 5,000 $ 16.02 $ 1,980 Granted 7,000 21.00 — Exercised — — — Forfeited/cancelled/expired (1,000 ) 16.02 4,780 Outstanding, at June 30, 2017 11,000 19.19 9.381 52,370 Vested and exercisable, end of the period 800 16.02 8.750 6,344 Vested and unvested exercisable, end of the period 800 16.02 8.750 6,344 Vested and expected to vest, at June 30, 2017 11,000 $ 19.19 9.381 $ 52,370 The table below summarizes the activity for the Company’s restricted stock outstanding during the nine months ended at June 30, 2017: Shares Weighted Average Fair Value Nonvested at September 30, 2016 1,930 $ 17.40 Granted 12,522 20.79 Vested (337 ) 21.15 Forfeited/cancelled/expired (241 ) 17.40 Nonvested at June 30, 2017 13,874 $ 20.36 As of June 30, 2017, there was $202,000 of total unrecognized compensation cost related to nonvested shares of restricted stock granted under the Plan. The cost is expected to be recognized over a weighted average period of 9.52 years. As of June 30, 2017, there was $62,000 of total unrecognized compensation cost related to nonvested options to purchase 11,000 shares of common stock granted under the Plan. The cost is expected to be recognized over a weighted average period of 9.38 years. |
Subordinated Debt
Subordinated Debt | 9 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | Note 14 – Subordinated Debt On February 7, 2017, the Company issued $25.0 million in aggregate principal amount of its 6.125% 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% 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 $24.3 million (reported net of $737,000 in debt issuance costs) at June 30, 2017. 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% of the principal amount of the Notes plus any accrued and unpaid interest through, but excluding, the redemption date. |
Correction of Error in Financ23
Correction of Error in Financial Statements (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of the effect of the restatement on certain key items of the Original Financial Statements | The following tables summarize the effect of the restatement on certain key items of the Original Financial Statements: Item 8: Financial Statement- Balance Sheet (in thousands) June 30, 2017 September 30, 2016 Original Restated Change Original Restated Change Other liabilities $ 4,697 $ 3,927 $ (770 ) $ 4,549 $ 2,983 $ (1,566 ) Total Liabilities 911,245 910,475 (770 ) 726,681 725,115 (1,566 ) Retained earnings 40,414 41,184 770 35,756 37,322 1,566 Total Shareholders’ Equity 99,663 100,433 770 94,591 96,157 1,566 Item 8: Financial Statement- Income Statement (in thousands) For the Three Months Ended June 30, 2017 For the Nine Months Ended June 30, 2017 Original Restated Change Original Restated Change Income tax expense $ 503 $ 863 $ 360 $ 1,144 $ 1,940 $ 796 Net Income 2,079 1,719 (360 ) 4,658 3,862 (796 ) Basic Earnings Per Share $ 0.32 $ 0.27 (0.05 ) $ 0.72 $ 0.60 (0.12 ) Diluted Earnings Per Share $ 0.32 $ 0.27 (0.05 ) $ 0.72 $ 0.60 (0.12 ) Item 8: Financial Statement - Comprehensive Income (in thousands) For the Three Months Ended June 30, 2017 For the Nine Months Ended June 30, 2017 Original Restated Change Original Restated Change Net Income $ 2,079 $ 1,719 $ (360 ) $ 4,658 $ 3,862 $ (796 ) Total comprehensive Income 2,027 1,667 (360 ) 4,754 3,958 (796 ) Item 8: Financial Statement - Changes in Shareholders Equity (in thousands) For the Nine Months Ended June 30, 2017 For the Nine Months Ended June 30, 2016 Original Restated Change Original Restated Change Net Income – Retained Earnings $ 4,658 $ 3,862 $ (796 ) $ 4,199 $ 4,199 $ — Net Income – Total Shareholders’ Equity 4,658 3,862 (796 ) 4,199 4,199 — Beginning Retained Earnings Balance at 35,756 37,322 1,566 23,814 25,157 1,358 Ending Retained Earnings Balance at 40,414 41,184 770 28,013 29,371 1,358 Beginning Total Shareholders’ Equity Balance at 94,591 96,157 1,566 81,391 82,749 1,358 Ending Total Shareholders’ Equity Balance at 99,663 100,433 770 86,650 88,008 1,358 Item 8: Financial Statement - Cash Flows (in thousands) Nine Months Ended June 30, 2017 Original Restated Change Net Income $ 4,658 $ 3,862 $ (796 ) Increase in other liabilities 148 944 796 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of composition of weighted average shares (denominator) used in earnings per share computations | The following table sets forth the composition of the weighted average shares (denominator) used in the earnings per share computations. Three Months Ended June 30, Nine Months Ended June 30, (in thousands, except for share data) 2017 2016 2017 2016 (Restated) (Restated) Net Income $ 1,719 $ 1,589 $ 3,862 $ 4,199 Weighted average shares outstanding 6,578,062 6,560,713 6,566,138 6,559,961 Average unearned ESOP shares (134,547 ) (148,947 ) (138,160 ) (152,558 ) Basic weighted average shares outstanding 6,443,515 6,411,766 6,427,978 6,407,403 Plus: effect of dilutive options and restricted shares 1,773 38 448 30 Diluted weighted average common shares outstanding 6,445,288 6,411,804 6,428,426 6,407,433 Earnings per share: Basic $ 0.27 $ 0.25 $ 0.60 $ 0.66 Diluted $ 0.27 $ 0.25 $ 0.60 $ 0.66 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investment securities | The following tables present information related to the Company’s investment securities at June 30, 2017 and September 30, 2016. June 30, 2017 Amortized Gross Gross Fair (in thousands) Investment Securities Available-for-Sale: State and municipal obligations $ 9,205 $ 65 $ (5 ) $ 9,265 Single issuer trust preferred security 1,000 — (61 ) 939 Corporate debt securities 6,633 — (276 ) 6,357 Mutual fund 250 — — 250 Total 17,088 65 (342 ) 16,811 Investment Securities Held-to-Maturity: U.S. government agencies $ 1,999 $ — $ (6 ) $ 1,993 State and municipal obligations 9,638 88 (9 ) 9,717 Corporate debt securities 3,842 — (4 ) 3,838 Mortgage-backed securities: Collateralized mortgage obligations, fixed-rate 20,548 1 (472 ) 20,077 Total $ 36,027 $ 89 $ (491 ) $ 35,625 Total investment securities $ 53,115 $ 154 $ (833 ) $ 52,436 September 30, 2016 Amortized Gross Gross Fair (in thousands) Investment Securities Available-for-Sale: State and municipal obligations $ 24,751 $ 557 $ (1 ) $ 25,307 Single issuer trust preferred security 1,000 — (122 ) 878 Corporate debt securities 40,189 347 (334 ) 40,202 Total 65,940 904 (457 ) 66,387 Investment Securities Held-to-Maturity: U.S. government agencies $ 2,999 $ 16 $ — $ 3,015 State and municipal obligations 9,826 167 (1 ) 9,992 Corporate debt securities 3,916 77 — 3,993 Mortgage-backed securities: Collateralized mortgage obligations, fixed-rate 23,810 102 (95 ) 23,817 Total $ 40,551 $ 362 $ (96 ) $ 40,817 Total investment securities $ 106,491 $ 1,266 $ (553 ) $ 107,204 |
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 June 30, 2017 and September 30, 2016: June 30, 2017 Less than 12 Months 12 Months or Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Investment Securities Available-for-Sale: State and municipal obligations $ 1,014 $ (5 ) $ — $ — $ 1,014 $ (5 ) Single issuer trust preferred security — — 939 (61 ) 939 (61 ) Corporate debt securities 3,078 (55 ) 3,279 (221 ) 6,357 (276 ) Total $ 4,092 $ (60 ) $ 4,218 $ (282 ) $ 8,310 $ (342 ) Investment Securities Held-to-Maturity: U.S. government agencies 1,993 (6 ) — — 1,993 (6 ) State and municipal obligations 2,847 (9 ) — — 2,847 (9 ) Corporate debt securities 3,838 (4 ) — — 3,838 (4 ) Mortgage-backed securities: CMO, fixed-rate 12,953 (229 ) 6,940 (243 ) 19,893 (472 ) Total 21,631 (248 ) 6,940 (243 ) 28,571 (491 ) Total investment securities $ 25,723 $ (308 ) $ 11,158 $ (525 ) $ 36,881 $ (833 ) September 30, 2016 Less than 12 Months 12 Months or Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Investment Securities Available-for-Sale: State and municipal obligations $ 501 $ (1 ) $ — $ — $ 501 $ (1 ) Single issuer trust preferred security — — 878 (122 ) 878 (122 ) Corporate debt securities 984 (9 ) 10,614 (325 ) 11,598 (334 ) Total $ 1,485 $ (10 ) $ 11,492 $ (447 ) $ 12,977 $ (457 ) Investment Securities Held-to-Maturity: State and municipal obligations 1,193 (1 ) — — 1,193 (1 ) Mortgage-backed securities: CMO, fixed-rate 4,342 (17 ) 6,283 (78 ) 10,625 (95 ) Total 5,535 (18 ) 6,283 (78 ) 11,818 (96 ) Total investment securities $ 7,020 $ (28 ) $ 17,775 $ (525 ) $ 24,795 $ (553 ) |
Schedule of amortized cost and fair value of debt securities by contractual maturity | The following table presents information for investment securities at June 30, 2017, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. June 30, 2017 Amortized Cost Fair Value (in thousands) Investment Securities Available-for-Sale: Due in one year or less $ — $ — Due after one year through five years 2,836 2,841 Due after five years through ten years 10,593 10,343 Due after ten years 3,659 3,627 Total $ 17,088 $ 16,811 Investment Securities Held-to-Maturity: Due after one year through five years $ 1,999 $ 1,992 Due after five years through ten years 5,861 5,918 Due after ten years 28,167 27,715 Total $ 36,027 $ 35,625 Total investment securities $ 53,115 $ 52,436 |
Loans Receivable and Related 26
Loans Receivable and Related Allowance for Loan Losses (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of loans receivable | Loans receivable in the Company’s portfolio consisted of the following at the dates indicated below: June 30, September 30, 2017 2016 (in thousands) Residential mortgage $ 190,788 $ 209,186 Construction and Development: Residential and commercial 36,530 18,579 Land 18,325 10,013 Total Construction and Development 54,855 28,592 Commercial: Commercial real estate 424,732 231,439 Farmland 1,734 — Multi-family 21,547 19,515 Other 71,248 38,779 Total Commercial 519,261 289,733 Consumer: Home equity lines of credit 17,602 19,757 Second mortgages 23,658 29,204 Other 1,403 1,914 Total Consumer 42,663 50,875 Total loans 807,567 578,386 Deferred loan fees and cost, net 687 1,208 Allowance for loan losses (7,917 ) (5,434 ) Total loans receivable, net $ 800,337 $ 574,160 |
Schedule of allowance for loan losses | The following tables summarize the primary classes of the allowance for loan losses (“ALLL”), segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2017 and September 30, 2016. Activity in the allowance is presented for the three and nine months ended June 30, 2017 and 2016 and the year ended September 30, 2016, respectively. Three Months Ended June 30, 2017 Construction and Commercial Consumer Residential Mortgage Residential and Commercial Land Commercial Real Estate Farmland Multi-family Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total (in thousands) Allowance for loan losses: Beginning balance $ 1,042 $ 1,343 $ 128 $ 2,479 $ — $ 67 $ 369 $ 107 $ 415 $ 20 $ 1,211 $ 7,181 Charge-offs — — — — — — — — (64 ) — — (64 ) Recoveries 2 — — 9 — — 2 15 123 4 — 155 Provision (Credit) (24 ) (660 ) 18 218 10 45 35 (25 ) (98 ) (7 ) 1,133 645 Ending Balance $ 1,020 $ 683 $ 146 $ 2,706 $ 10 $ 112 $ 406 $ 97 $ 376 $ 17 $ 2,344 $ 7,917 Three Months Ended June 30, 2016 Construction and Development Commercial Consumer Residential Residential and Commercial Land Commercial Real Estate Multi-family Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total (in thousands) Allowance for loan losses: Beginning balance $ 1,399 $ 74 $ 106 $ 1,529 $ 151 $ 193 $ 133 $ 580 $ 29 $ 743 $ 4,937 Charge-offs — (91 ) — — — — — — (11 ) — (102 ) Recoveries (23 ) 39 — — — — 1 15 4 — 36 Provision (Credit) (150 ) 236 16 266 (13 ) (37 ) (9 ) (72 ) 10 225 472 Ending Balance $ 1,226 $ 258 $ 122 $ 1,795 $ 138 $ 156 $ 125 $ 523 $ 32 $ 968 $ 5,343 Nine Months Ended June 30, 2017 Construction and Commercial Consumer Residential Mortgage Residential and Commercial Land Commercial Real Estate Farmland Multi-family Other Home Equity Lines of Credit Second Other Unallocated Total (in thousands) Allowance for loan losses: Beginning balance $ 1,201 $ 199 $ 97 $ 1,874 $ — $ 109 $ 158 $ 116 $ 467 $ 34 $ 1,179 $ 5,434 Charge-offs — — — — — — — — (185 ) (5 ) — (190 ) Recoveries 2 90 — 39 — — 8 17 205 10 — 371 Provisions (183 ) 394 49 793 10 3 240 (36 ) (111 ) (22 ) 1,165 2,302 Ending Balance $ 1,020 $ 683 $ 146 $ 2,706 $ 10 $ 112 $ 406 $ 97 $ 376 $ 17 $ 2,344 $ 7,917 Ending balance: $ — $ — $ — $ — $ — $ — $ 112 $ — $ 70 $ — $ — $ 182 Ending balance: $ 1,020 $ 683 $ 146 $ 2,706 $ 10 $ 112 $ 294 $ 97 $ 306 $ 17 $ 2,344 $ 7,735 Loans receivable: Ending balance $ 190,788 $ 36,530 $ 18,325 $ 424,732 $ 1,734 $ 21,547 $ 71,248 $ 17,602 $ 23,658 $ 1,403 $ 807,567 Ending balance: $ 2,089 $ 97 $ — $ 744 $ — $ — $ 246 $ 10 $ 219 $ — $ 3,405 Ending balance: $ 188,699 $ 36,433 $ 18,325 $ 423,988 $ 1,734 $ 21,547 $ 71,002 $ 17,592 $ 23,439 $ 1,403 $ 804,162 Nine Months Ended June 30, 2016 Construction and Development Commercial Consumer Residential Mortgage Residential and Commercial Land Commercial Real Estate Multi-family Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total (in thousands) Allowance for loan losses: Beginning balance $ 1,486 $ 30 $ 35 $ 1,235 $ 104 $ 108 $ 139 $ 761 $ 24 $ 745 $ 4,667 Charge-offs (9 ) (91 ) — (99 ) — — — (255 ) (54 ) — (508 ) Recoveries 17 243 — 3 — 2 1 59 12 — 337 Provisions (268 ) 76 87 656 34 46 (15 ) (42 ) 50 223 847 Ending Balance $ 1,226 $ 258 $ 122 $ 1,795 $ 138 $ 156 $ 125 $ 523 $ 32 $ 968 $ 5,343 Ending balance: $ — $ — $ — $ — $ — $ — $ — $ 24 $ — $ — $ 24 Ending balance: $ 1,226 $ 258 $ 122 $ 1,795 $ 138 $ 156 $ 125 $ 499 $ 32 $ 968 $ 5,319 Loans receivable: Ending balance $ 210,621 $ 14,050 $ 9,904 $ 211,516 $ 20,102 $ 37,091 $ 21,035 $ 31,752 $ 2,088 $ 558,159 Ending balance: $ 787 $ 109 $ — $ 1,850 $ — $ — $ 20 $ 232 $ — $ 2,998 Ending balance: $ 209,834 $ 13,941 $ 9,904 $ 209,666 $ 20,102 $ 37,091 $ 21,015 $ 31,520 $ 2,088 $ 555,161 Year Ended September 30, 2016 Construction and Development Commercial Consumer Residential Residential and Commercial Land Commercial Real Estate Multi-family Other Home Equity Lines of Credit Second Mortgages Other Unallocated Total (In thousands) Allowance for loan losses: Beginning balance $ 1,486 $ 30 $ 35 $ 1,235 $ 104 $ 108 $ 139 $ 761 $ 24 $ 745 $ 4,667 Charge-offs (9 ) (91 ) — (99 ) — — — (291 ) (70 ) — (560 ) Recoveries 17 243 — 3 — 3 1 100 13 — 380 Provisions (293 ) 17 62 735 5 47 (24 ) (103 ) 67 434 947 Ending Balance $ 1,201 $ 199 $ 97 $ 1,874 $ 109 $ 158 $ 116 $ 467 $ 34 $ 1,179 $ 5,434 Ending balance: $ — $ — $ — $ — $ — $ — $ — $ 23 $ — $ — $ 23 Ending balance: $ 1,201 $ 199 $ 97 $ 1,874 $ 109 $ 158 $ 116 $ 444 $ 34 $ 1,179 $ 5,411 Loans receivable: Ending balance $ 209,186 $ 18,579 $ 10,013 $ 231,439 $ 19,515 $ 38,779 $ 19,757 $ 29,204 $ 1,914 $ 578,386 Ending balance: $ 1,159 $ 109 $ — $ 2,039 $ — $ — $ 74 $ 277 $ — $ 3,658 Ending balance: $ 208,027 $ 18,470 $ 10,013 $ 229,400 $ 19,515 $ 38,779 $ 19,683 $ 28,927 $ 1,914 $ 574,728 |
Schedule of impaired loans | The following table presents impaired loans in 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 June 30, 2017 and September 30, 2016. Impaired Loans With Impaired Total Impaired Loans Recorded Related Recorded Recorded Unpaid (In thousands) June 30, 2017: Residential mortgage $ — $ — $ 2,089 $ 2,089 $ 2,222 Construction and Development: Residential and commercial — — 97 97 97 Commercial: Commercial real estate — — 744 744 754 Other 246 112 — 246 246 Consumer: Home equity lines of credit — — 10 10 11 Second mortgages 112 70 107 219 247 Total impaired loans $ 358 $ 182 $ 3,047 $ 3,405 $ 3,577 September 30, 2016: Residential mortgage $ — $ — $ 1,159 $ 1,159 $ 1,225 Construction and Development: Residential and commercial — — 109 109 109 Commercial: Commercial real estate — — 2,039 2,039 2,039 Consumer: Home equity lines of credit — — 74 74 90 Second mortgages 31 23 246 277 451 Total impaired loans $ 31 $ 23 $ 3,627 $ 3,658 $ 3,914 |
Schedule of average recorded investment in impaired loans and related interest income recognized | The following table presents the average recorded investment in impaired loans in portfolio and related interest income recognized for three and nine months ended June 30, 2017 and 2016. Three Months Ended June 30, 2017 Nine Months Ended June 30, 2017 (in thousands) Average Impaired Loans Interest Income Recognized on Impaired Loans Average Impaired Loans Interest Income Recognized on Impaired Loans Residential mortgage $ 2,099 $ 10 $ 2,091 $ 43 Construction and Development: Residential and commercial 104 2 107 4 Commercial: Commercial real estate 747 6 1,038 14 Other 248 2 111 2 Consumer: Home equity lines of credit 10 — 47 — Second mortgages 205 1 190 2 Total $ 3,413 $ 21 $ 3,584 $ 65 Three Months Ended June 30, 2016 Nine Months Ended June 30, 2016 (in thousands) Average Impaired Loans Interest Income Recognized on Impaired Loans Average Impaired Loans Interest Income Recognized on Impaired Loans Residential mortgage $ 712 $ — $ 641 $ — Construction and Development: Residential and commercial 251 1 164 3 Commercial: Commercial real estate 1,593 17 1,534 48 Consumer: Home equity lines of credit 20 — 20 — Second mortgages 222 — 204 — Total $ 2,798 $ 18 $ 2,563 $ 51 |
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 June 30, 2017 and September 30, 2016. June 30, 2017 Pass Special Substandard Doubtful Total (in thousands) Residential mortgage $ 188,265 $ 116 $ 2,407 $ — $ 190,788 Construction and Development: Residential and commercial 36,433 — 97 — 36,530 Land 12,537 — 5,788 — 18,325 Commercial: Commercial real estate 417,197 5,361 2,174 — 424,732 Farmland 1,734 — — — 1,734 Multi-family 21,179 368 — — 21,547 Other 70,346 — 902 — 71,248 Consumer: Home equity lines of credit 17,492 — 110 — 17,602 Second mortgages 22,886 114 658 — 23,658 Other 1,396 7 — — 1,403 Total $ 789,465 $ 5,966 $ 12,136 $ — $ 807,567 September 30, 2016 Pass Special Substandard Doubtful Total (in thousands) Residential mortgage $ 207,880 $ 122 $ 1,184 $ — $ 209,186 Construction and Development: Residential and commercial 18,470 — 109 — 18,579 Land 10,013 — — — 10,013 Commercial: Commercial real estate 221,742 4,990 4,707 — 231,439 Multi-family 19,303 212 — — 19,515 Other 37,848 259 672 — 38,779 Consumer: Home equity lines of credit 19,584 — 173 — 19,757 Second mortgages 27,843 119 1,242 — 29,204 Other 1,903 11 — — 1,914 Total $ 564,586 $ 5,713 $ 8,087 $ — $ 578,386 |
Schedule of loans that are no longer accruing interest by portfolio class | The following table presents loans that are no longer accruing interest by portfolio class. June 30, September 30, 2017 2016 (in thousands) Residential mortgage $ 1,225 $ 1,072 Commercial: Commercial real estate 184 193 Consumer: Home equity lines of credit 10 74 Second mortgages 137 278 Total non-accrual loans $ 1,556 $ 1,617 |
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 June 30, 2017 and September 30, 2016. Current 30-59 60-89 90 Total Past Due Total Loans Receivable Accruing 90 (in thousands) June 30, 2017: Residential mortgage $ 186,017 $ 2,968 $ 673 $ 1,130 $ 4,771 $ 190,788 $ 184 Construction and Development: Residential and commercial 36,530 — — — — 36,530 — Land 18,325 — — — — 18,325 — Commercial: Commercial real estate 424,181 551 — — 551 424,732 — Farmland 1,734 — — — — 1,734 — Multi-family 21,547 — — — — 21,547 — Other 71,248 — — — — 71,248 — Consumer: Home equity lines of credit 17,359 132 111 — 243 17,602 — Second mortgages 22,590 764 104 200 1,068 23,658 137 Other 1,402 — 1 — 1 1,403 — Total $ 800,933 $ 4,415 $ 889 $ 1,330 $ 6,634 $ 807,567 $ 321 Current 30-59 60-89 90 Total Past Due Total Loans Receivable Accruing 90 (in thousands) September 30, 2016: Residential mortgage $ 204,816 $ 1,750 $ 1,345 $ 1,275 $ 4,370 $ 209,186 $ 509 Construction and Development: Residential and commercial 18,579 — — — — 18,579 — Land 10,013 — — — — 10,013 — Commercial: Commercial real estate 231,059 — — 380 380 231,439 187 Multi-family 19,515 — — — — 19,515 — Other 38,433 346 — — 346 38,779 — Consumer: Home equity lines of credit 19,513 170 43 31 244 19,757 — Second mortgages 27,933 473 566 232 1,271 29,204 — Other 1,913 1 — — 1 1,914 — Total $ 571,774 $ 2,740 $ 1,954 $ 1,918 $ 6,612 $ 578,386 $ 696 |
Schedule of TDR loans | The following table presents our TDR loans as of June 30, 2017 and September 30, 2016. Total Troubled Debt Troubled Debt Restructured Number of Recorded Number of Recorded (Dollars in thousands) At June 30, 2017: Residential mortgage 5 $ 1,117 1 $ 225 Construction and Development: Residential and commercial 1 97 — — Commercial: Commercial real estate 3 744 1 184 Consumer: Second mortgages 2 77 1 23 Total 11 $ 2,035 3 $ 432 At September 30, 2016: Residential mortgage 2 $ 224 1 $ 139 Construction and Development: Residential and commercial 1 109 — — Commercial: Commercial real estate 4 1,845 — — Total 7 $ 2,178 1 $ 139 |
Schedule of performing status of TDR loans | The following table reports the performing status all of TDR loans. The performing status is determined by the loans’ compliance with the modified terms. June 30, 2017 September 30, 2016 Performing Non-Performing Performing Non-Performing (In thousands) Residential mortgage $ 892 $ 225 $ 85 $ 139 Construction and Development: Residential and commercial 97 — 109 — Commercial: Commercial real estate 560 184 1,845 — Consumer: Second mortgages 54 23 — — Total $ 1,603 $ 432 $ 2,039 $ 139 |
Schedule of loans which were first deemed to be TDRs | The following table shows the activity in loans which were first deemed to be TDRs during the three and nine months ended June 30, 2017 and 2016. For the Three Months Ended June 30, 2017 2016 Restructured During Period Number of Loans Pre-Modifications Outstanding Post-Modifications Outstanding Number of Loans Pre-Modifications Outstanding Recorded Investments Post-Modifications Outstanding Recorded Investments (In thousands) Troubled Debt Restructurings: Commercial: Commercial real estate — $ — $ — 1 $ 386 $ 386 Total — $ — $ — 1 $ 386 $ 386 For the Nine Months Ended June 30, 2017 2016 Restructured During Period Number of Loans Pre-Modifications Outstanding Recorded Investments Post-Modifications Outstanding Recorded Number of Loans Pre-Modifications Outstanding Recorded Investments Post-Modifications Outstanding Recorded Investments (In thousands) Troubled Debt Restructurings: Residential mortgage 3 $ 889 $ 889 — $ — $ — Commercial: Commercial real estate 1 193 193 1 386 386 Consumer: Second mortgages 2 81 81 — — — Total 6 $ 1,163 $ 1,163 1 $ 386 $ 386 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of company's compliance of capital requirements | The subordinated debentures were structured to qualify as Tier 2 capital for regulatory purposes. The following table summarizes the Company’s compliance with applicable regulatory capital requirements as of June 30, 2017 and September 30, 2016: To Be Well Capitalized (Restated) For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio As of June 30, 2017: Tier 1 Leverage (to average assets) $ 98,085 10.05 % $ 39,026 4.00 % $ 48,783 5.00 % Common Equity Tier 1 Capital (to risk weighted assets) 98,085 12.38 % 35,646 4.50 % 51,489 6.50 % Tier 1 Capital (to risk weighted assets) 98,085 12.38 % 47,529 6.00 % 63,371 8.00 % Total Capital (to risk weighted assets) 130,327 16.45 % 63,371 8.00 % 79,214 10.00 % As of September 30, 2016: Tier 1 Leverage (to average assets) $ 91,876 11.64 % $ 31,561 4.00 % $ 39,452 5.00 % Common Equity Tier 1 Capital (to risk weighted assets) 91,876 15.37 % 26,894 4.50 % 38,847 6.50 % Tier 1 Capital (to risk weighted assets) 91,876 15.37 % 35,859 6.00 % 47,812 8.00 % Total Capital (to risk weighted assets) 97,372 16.29 % 47,812 8.00 % 59,765 10.00 % |
Schedule of actual capital amounts and ratios | The following table summarizes the Bank’s compliance with applicable regulatory capital requirements as of June 30, 2017 and September 30, 2016: To Be Well Capitalized (Restated) For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio As of June 30, 2017: Tier 1 Leverage (to average assets) $ 116,795 11.99 % $ 38,980 4.00 % $ 48,725 5.00 % Common Equity Tier 1 Capital (to risk weighted assets) 116,795 14.79 % 35,532 4.50 % 51,324 6.50 % Tier 1 Capital (to risk weighted assets) 116,795 14.79 % 47,376 6.00 % 63,168 8.00 % Total Capital (to risk weighted assets) 124,775 15.80 % 63,168 8.00 % 78,960 10.00 % As of September 30, 2016: Tier 1 Leverage (to average assets) $ 86,596 10.98 % $ 31,533 4.00 % $ 39,417 5.00 % Common Equity Tier 1 Capital (to risk weighted assets) 86,596 14.50 % 26,875 4.50 % 38,820 6.50 % Tier 1 Capital (to risk weighted assets) 86,596 14.50 % 35,834 6.00 % 47,779 8.00 % Total Capital (to risk weighted assets) 92,092 15.42 % 47,779 8.00 % 59,723 10.00 % |
Derivatives and Hedging Activ28
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of effects of derivative instruments on the consolidated financial statements | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of June 30, 2017 and September 30, 2016: June 30, 2017 Notional Amount Fair Value Balance Sheet Location Expiration Date (dollars in thousand) Derivatives designated as hedging instruments Interest rate swaps by effective date: August 3, 2015 $ 15,000 $ 23 Other liabilities August 3, 2020 February 5, 2016 20,000 350 Other assets February 1, 2021 September 30, 2016 Notional Amount Fair Value Balance Sheet Location Expiration Date (dollars in thousand) Derivatives designated as hedging instruments Interest rate swaps by effective date: August 3, 2015 $ 15,000 $ 394 Other liabilities August 3, 2020 February 5, 2016 20,000 148 Other liabilities February 1, 2021 |
Schedule of net gains (losses) recorded in accumulated other comprehensive income and the consolidate statements of income | The tables below presents the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Operations relating to the cash flow derivative instruments for the three and nine months ended June 30, 2017 and 2016. For the Three Months Ended June 30, 2017 Amount of Gain Amount of Gain Amount of Gain (Loss) (in thousands) August 3, 2015 $ (70 ) $ (25 ) $ — February 5, 2016 (113 ) (8 ) — For the Nine Months Ended June 30, 2017 Amount of Gain Amount of Gain Amount of Gain (Loss) (in thousands) August 3, 2015 $ 280 $ (91 ) $ — February 5, 2016 451 (47 ) — For the Three Months Ended June 30, 2016 Amount of Gain Amount of Gain Amount of Gain (Loss) (in thousands) August 3, 2015 $ (139 ) $ (44 ) $ — February 5, 2016 (215 ) (34 ) — For the Nine Months Ended June 30, 2016 Amount of Gain Amount of Gain Amount of Gain (Loss) (in thousands) August 3, 2015 $ (383 ) $ (148 ) $ — February 5, 2016 (381 ) (55 ) — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of balances of assets measured at fair value on a recurring basis | The table below presents the balances of assets and liabilities measured at fair value on a recurring basis: June 30, 2017 Total Level 1 Level 2 Level 3 (in thousands) Assets: Investment securities available-for-sale: Debt securities: State and municipal obligations $ 9,265 $ — $ 9,265 $ — Single issuer trust preferred security 939 — 939 — Corporate debt securities 6,357 — 6,357 — Mutual fund 250 250 — — Total investment securities available-for-sale 16,811 250 16,561 — Derivative instruments $ 350 $ — $ 350 $ — Liabilities: Derivative instruments $ 23 $ — $ 23 $ — September 30, 2016 Total Level 1 Level 2 Level 3 (in thousands) Assets: Investment securities available-for-sale: Debt securities: State and municipal obligations $ 25,307 $ — $ 25,307 $ — Single issuer trust preferred security 878 — 878 — Corporate debt securities 40,202 — 40,202 — Total investment securities available-for-sale 66,387 — 66,387 — Liabilities: Derivative instruments $ 542 $ — $ 542 $ — |
Schedule of assets measured at fair value on a non recurring basis | For assets measured at fair value on a nonrecurring basis that were still held at the end of the period, the following table provides the level of valuation assumptions used to determine each adjustment and the carrying value of the related individual assets or portfolios at June 30, 2017 and September 30, 2016: June 30, 2017 Total Level 1 Level 2 Level 3 (in thousands) Impaired loans (1) $ 176 $ — $ — $ 176 Total $ 176 $ — $ — $ 176 June 30, 2017 Fair Value at June 30, 2017 Valuation Technique Unobservable Input Range/(Weighted Average) (dollars in thousands) Impaired loans (1) $ 176 Appraisal of collateral (2) Collateral discounts (3) 0%/(0%) Total $ 176 (1) At June 30, 2017, consisted of four loans with an aggregate balance of $358,000 and with $182,000 in specific loan loss allowance. (2) Fair value is generally determined through independent appraisals of the underlying collateral primarily using comparable sales. (3) Appraisals may be adjusted by management for qualitative factors such as time, changes in economic conditions and estimated liquidation expense. September 30, 2016 Total Level 1 Level 2 Level 3 (in thousands) Impaired loans (1) $ 8 $ — $ — $ 8 Total $ 8 $ — $ — $ 8 September 30, 2016 Fair Value at September 30, 2016 Valuation Technique Unobservable Input Range/(Weighted Average) (dollars in thousands) Impaired loans (1) $ 8 Appraisal of collateral (2) Collateral discounts (3) 0%/(0%) Total $ 8 (1) At September 30, 2016, consisted of one loan with an aggregate balance of $31,000 and with $23,000 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 June 30, 2017 and September 30, 2016 are presented below: Carrying Fair Value Level 1 Level 2 Level 3 (in thousands) June 30, 2017: Financial assets: Cash and cash equivalents $ 113,427 $ 113,427 $ 113,427 $ — $ — Investment securities available-for-sale 16,811 16,811 250 16,561 — Investment securities held-to-maturity 36,027 35,625 — 35,625 — Loans receivable, net (including impaired loans) 800,337 801,893 — — 801,893 Accrued interest receivable 2,837 2,837 — 2,837 — Restricted stock 5,458 5,458 — 5,458 — Mortgage servicing rights (included in Other Assets) 282 279 — 279 — Derivatives (included in Other Assets) 350 350 — 350 — Financial liabilities: Savings accounts 43,709 43,709 — 43,709 — Checking and NOW accounts 155,536 155,536 — 155,536 — Money market accounts 274,018 274,018 — 274,018 — Certificates of deposit 286,416 288,367 — 288,367 — FHLB advances 118,000 118,694 — 118,694 — Subordinated debt 24,263 24,263 — 24,263 — Derivatives (included in Other Liabilities) 23 23 — 23 — Accrued interest payable 1,060 1,060 — 1,060 — September 30, 2016: Financial assets: Cash and cash equivalents $ 96,762 $ 96,762 $ 96,762 $ — $ — Investment securities available-for-sale 66,387 66,387 — 66,387 — Investment securities held-to-maturity 40,551 40,817 — 40,817 — Loans receivable, net (including impaired loans) 574,160 589,844 — — 589,844 Accrued interest receivable 2,558 2,558 — 2,558 — Restricted stock 5,424 5,424 — 5,424 — Mortgage servicing rights (included in Other Assets) 328 308 — 308 — Financial liabilities: Savings accounts 44,714 44,714 — 44,714 Checking and NOW accounts 129,588 129,588 — 129,588 — Money market accounts 177,486 177,486 — 177,486 — Certificates of deposit 250,258 252,232 — 252,232 — FHLB advances 118,000 119,946 — 119,946 — Derivatives (included in Other Liabilities) 542 542 — 542 — Accrued interest payable 427 427 — 427 — |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive (loss) included in shareholders equity | The components of accumulated other comprehensive income (loss) included in shareholders’ equity are as follows: June 30, September 30, 2017 2016 (In thousands) Net unrealized holding (losses) gains on available-for-sale securities $ (277 ) $ 447 Tax effect 94 (152 ) Net of tax amount (183 ) 295 Fair value adjustments on derivatives 327 (542 ) Tax effect (111 ) 184 Net of tax amount 216 (358 ) Total accumulated other comprehensive income (loss) $ 33 $ (63 ) |
Schedule of other comprehensive income (loss) and related tax effects | Other comprehensive income and related tax effects are presented in the following table: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2017 2016 2017 2016 Net unrealized holding gains (losses) on available-for-sale securities $ 446 $ 972 $ (299 ) $ 2,111 Net realized gains on securities available-for-sale (374 ) (229 ) (432 ) (421 ) Accretion of unrealized holding losses on securities available-for-sale transferred to held-to-maturity 2 3 7 7 Fair value adjustments on derivatives (151 ) (278 ) 868 (527 ) Other comprehensive (loss) income before taxes (77 ) 468 144 1,170 Tax effect 25 (159 ) (48 ) (292 ) Total comprehensive (loss) income $ (52 ) $ 309 $ 96 $ 878 |
Equity Based Incentive Compen31
Equity Based Incentive Compensation Plan (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of currently outstanding options | Stock option activity as of June 30, 2017 and changes during the nine months ended June 30, 2017 were as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Outstanding, beginning of fiscal year 5,000 $ 16.02 $ 1,980 Granted 7,000 21.00 — Exercised — — — Forfeited/cancelled/expired (1,000 ) 16.02 4,780 Outstanding, at June 30, 2017 11,000 19.19 9.381 52,370 Vested and exercisable, end of the period 800 16.02 8.750 6,344 Vested and unvested exercisable, end of the period 800 16.02 8.750 6,344 Vested and expected to vest, at June 30, 2017 11,000 $ 19.19 9.381 $ 52,370 |
Schedule of restricted stock outstanding | The table below summarizes the activity for the Company’s restricted stock outstanding during the nine months ended at June 30, 2017: Shares Weighted Average Fair Value Nonvested at September 30, 2016 1,930 $ 17.40 Granted 12,522 20.79 Vested (337 ) 21.15 Forfeited/cancelled/expired (241 ) 17.40 Nonvested at June 30, 2017 13,874 $ 20.36 |
Basis of Presentation (Details
Basis of Presentation (Details Narrative) - Center | 9 Months Ended | |
Jun. 30, 2017 | Dec. 15, 2016 | |
Number of full service financial center | 8 | |
Malvern Insurance Associates, LLC ("Malvern Insurance") [Member] | ||
Ownership interest | 100.00% |
Correction of Error in Financ33
Correction of Error in Financial Statements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Other liabilities | [1] | $ 3,927 | $ 2,983 | ||
Total Liabilities | [1] | 910,475 | 725,115 | ||
Retained earnings | [1] | 41,184 | 37,322 | ||
Shareholders' equity | [1] | 100,433 | 96,157 | $ 88,008 | $ 82,749 |
Original [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Other liabilities | 4,697 | 4,549 | |||
Total Liabilities | 911,245 | 726,681 | |||
Retained earnings | 40,414 | 35,756 | |||
Shareholders' equity | 99,663 | 94,591 | 86,650 | 81,391 | |
Change [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Other liabilities | (770) | (1,566) | |||
Total Liabilities | (770) | (1,566) | |||
Retained earnings | 770 | 1,566 | |||
Shareholders' equity | $ 770 | $ 1,566 | $ 1,358 | $ 1,358 | |
[1] | Restated |
Correction of Error in Financ34
Correction of Error in Financial Statements (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Income tax expense | $ 863 | [1] | $ 1,940 | [1] | |||
Net Income | $ 1,719 | [1] | $ 1,589 | $ 3,862 | [1] | $ 4,199 | [1] |
Basic Earnings Per Share (in dollars per share) | $ 0.27 | [1] | $ 0.25 | $ 0.60 | [1] | $ 0.66 | |
Diluted Earnings Per Share (in dollars per share) | $ 0.27 | [1] | $ 0.25 | $ 0.60 | [1] | $ 0.66 | |
Original [Member] | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Income tax expense | $ 503 | $ 1,144 | |||||
Net Income | $ 2,079 | $ 4,658 | $ 4,199 | ||||
Basic Earnings Per Share (in dollars per share) | $ 0.32 | $ 0.72 | |||||
Diluted Earnings Per Share (in dollars per share) | $ 0.32 | $ 0.72 | |||||
Change [Member] | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Income tax expense | $ 360 | $ 796 | |||||
Net Income | $ (360) | $ (796) | |||||
Basic Earnings Per Share (in dollars per share) | $ (0.05) | $ (0.12) | |||||
Diluted Earnings Per Share (in dollars per share) | $ (0.05) | $ (0.12) | |||||
[1] | Restated |
Correction of Error in Financ35
Correction of Error in Financial Statements (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net income | $ 1,719 | [1] | $ 1,589 | $ 3,862 | [1] | $ 4,199 | [1] |
Total comprehensive Income | 1,667 | [1] | $ 1,898 | 3,958 | [1] | 5,077 | |
Original [Member] | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net income | 2,079 | 4,658 | 4,199 | ||||
Total comprehensive Income | 2,079 | 4,754 | |||||
Change [Member] | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net income | (360) | (796) | |||||
Total comprehensive Income | $ (360) | $ (796) | |||||
[1] | Restated |
Correction of Error in Financ36
Correction of Error in Financial Statements (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Net income | $ 1,719 | [1] | $ 1,589 | $ 3,862 | [1] | $ 4,199 | [1] | |
Balance at beginning | [1] | 96,157 | 82,749 | |||||
Balance at ending | [1] | 100,433 | 88,008 | 100,433 | 88,008 | |||
Retained Earnings [Member] | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Net income | [1] | 3,862 | 4,199 | |||||
Balance at beginning | [1] | 37,322 | 25,172 | |||||
Balance at ending | [1] | 41,184 | 29,371 | 41,184 | 29,371 | |||
Original [Member] | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Net income | 2,079 | 4,658 | 4,199 | |||||
Balance at beginning | 94,591 | 81,391 | ||||||
Balance at ending | 99,663 | 86,650 | 99,663 | 86,650 | ||||
Original [Member] | Retained Earnings [Member] | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Net income | 4,658 | 4,199 | ||||||
Balance at beginning | 35,756 | 23,814 | ||||||
Balance at ending | 40,414 | 28,013 | 40,414 | 28,013 | ||||
Change [Member] | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Net income | (360) | (796) | ||||||
Balance at beginning | 1,566 | 1,358 | ||||||
Balance at ending | 770 | 1,358 | 770 | 1,358 | ||||
Change [Member] | Retained Earnings [Member] | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Net income | (796) | |||||||
Balance at beginning | 1,566 | 1,358 | ||||||
Balance at ending | $ 770 | $ 1,358 | $ 770 | $ 1,358 | ||||
[1] | Restated |
Correction of Error in Financ37
Correction of Error in Financial Statements (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net income (loss) | $ 1,719 | [1] | $ 1,589 | $ 3,862 | [1] | $ 4,199 | [1] |
Increase in other liabilities | 944 | [1] | (334) | ||||
Original [Member] | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net income (loss) | 2,079 | 4,658 | 4,199 | ||||
Increase in other liabilities | 148 | ||||||
Change [Member] | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net income (loss) | $ (360) | (796) | |||||
Increase in other liabilities | $ 796 | ||||||
[1] | Restated |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||||
Earnings Per Share [Abstract] | |||||||
Net Income | $ 1,719 | [1] | $ 1,589 | $ 3,862 | [1] | $ 4,199 | [1] |
Weighted average shares outstanding | 6,578,062 | 6,560,713 | 6,566,138 | 6,559,961 | |||
Average unearned ESOP shares | (134,547) | (148,947) | (138,160) | (152,558) | |||
Basic weighted average shares outstanding | 6,443,515 | [1] | 6,411,766 | 6,427,978 | [1] | 6,407,403 | |
Plus: effect of dilutive options and restricted shares | 1,773 | 38 | 448 | 30 | |||
Diluted weighted average common shares outstanding | 6,445,288 | [1] | 6,411,804 | 6,428,426 | [1] | 6,407,433 | |
Earnings per share: | |||||||
Basic | $ 0.27 | [1] | $ 0.25 | $ 0.60 | [1] | $ 0.66 | |
Diluted | $ 0.27 | [1] | $ 0.25 | $ 0.60 | [1] | $ 0.66 | |
[1] | Restated |
Earnings Per Share (Details Nar
Earnings Per Share (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options | 7,000 | ||
Restricted shares issued | 12,522 | 2,240 | |
Anti-dilutive shares | 9,359 | ||
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options | 7,000 | 7,000 | 5,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Sep. 30, 2016 | ||
Investment Securities Available-for-Sale: | |||
Amortized Cost | $ 17,088 | $ 65,940 | |
Gross Unrealized Gains | 65 | 904 | |
Gross Unrealized Losses | (342) | (457) | |
Fair value | [1] | 16,811 | 66,387 |
Investment Securities Held-to-Maturity: | |||
Amortized Cost | 36,027 | 40,551 | |
Gross Unrealized Gains | 89 | 362 | |
Gross Unrealized Losses | (491) | (96) | |
Fair Value | 35,625 | 40,817 | |
Total investment securities Amortized Cost | 53,115 | 106,491 | |
Total investment securities Gross Unrealized Gains | 154 | 1,266 | |
Total investment securities Gross Unrealized Losses | (833) | (553) | |
Total investment securities Fair Value | 52,436 | 107,204 | |
U S Government Agencies [Member] | |||
Investment Securities Held-to-Maturity: | |||
Amortized Cost | 1,999 | 2,999 | |
Gross Unrealized Gains | 16 | ||
Gross Unrealized Losses | (6) | ||
Fair Value | 1,993 | 3,015 | |
State And Municipal Obligations [Member] | |||
Investment Securities Available-for-Sale: | |||
Amortized Cost | 9,205 | 24,751 | |
Gross Unrealized Gains | 65 | 557 | |
Gross Unrealized Losses | (5) | (1) | |
Fair value | 9,265 | 25,307 | |
Investment Securities Held-to-Maturity: | |||
Amortized Cost | 9,638 | 9,826 | |
Gross Unrealized Gains | 88 | 167 | |
Gross Unrealized Losses | (9) | (1) | |
Fair Value | 9,717 | 9,992 | |
Single Issuer Trust Preferred Security [Member] | |||
Investment Securities Available-for-Sale: | |||
Amortized Cost | 1,000 | 1,000 | |
Gross Unrealized Gains | |||
Gross Unrealized Losses | (61) | (122) | |
Fair value | 939 | 878 | |
Corporate Debt Securities [Member] | |||
Investment Securities Available-for-Sale: | |||
Amortized Cost | 6,633 | 40,189 | |
Gross Unrealized Gains | 347 | ||
Gross Unrealized Losses | (276) | (334) | |
Fair value | 6,357 | 40,202 | |
Investment Securities Held-to-Maturity: | |||
Amortized Cost | 3,842 | 3,916 | |
Gross Unrealized Gains | 77 | ||
Gross Unrealized Losses | (4) | ||
Fair Value | 3,838 | 3,993 | |
Collateralized Mortgage Obligations [Member] | Fixed Rate [Member] | |||
Investment Securities Held-to-Maturity: | |||
Amortized Cost | 20,548 | 23,810 | |
Gross Unrealized Gains | 1 | 102 | |
Gross Unrealized Losses | (472) | (95) | |
Fair Value | 20,077 | $ 23,817 | |
Mutual Fund [Member] | |||
Investment Securities Available-for-Sale: | |||
Amortized Cost | 250 | ||
Gross Unrealized Gains | |||
Gross Unrealized Losses | |||
Fair value | $ 250 | ||
[1] | Restated |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Sep. 30, 2016 | |
Investment Securities Available-for-Sale: | ||
Less than 12 Months: Fair Value | $ 4,092 | $ 1,485 |
Less than 12 Months: Unrealized Losses | (60) | (10) |
12 Months or longer: Fair Value | 4,218 | 11,492 |
12 Months or longer: Unrealized Losses | (282) | (447) |
Total: Fair Value | 8,310 | 12,977 |
Total: Unrealized Losses | (342) | (457) |
Investment Securities Held-to-Maturity: | ||
Less than 12 Months: Fair Value | 21,631 | 5,535 |
Less than 12 Months: Unrealized Losses | (248) | (18) |
12 Months or longer: Fair Value | 6,940 | 6,283 |
12 Months or longer: Unrealized Losses | (243) | (78) |
Total: Fair Value | 28,571 | 11,818 |
Total: Unrealized Losses | (491) | (96) |
Total investment securities in an unrealized loss position less than 12 months fair value | 25,723 | 7,020 |
Total investment securities in an unrealized loss position less than 12 months gross unrealized loss | (308) | (28) |
Total investment securities in an unrealized loss position 12 months or more fair value | 11,158 | 17,775 |
Total investment securities in an unrealized loss position 12 months or more gross unrealized loss | (525) | (525) |
Total investment securities in an unrealized loss position fair value | 36,881 | 24,795 |
Total investment securities in an unrealized loss position gross unrealized loss | (833) | (553) |
State And Municipal Obligations [Member] | ||
Investment Securities Available-for-Sale: | ||
Less than 12 Months: Fair Value | 1,014 | 501 |
Less than 12 Months: Unrealized Losses | (5) | (1) |
12 Months or longer: Fair Value | ||
12 Months or longer: Unrealized Losses | ||
Total: Fair Value | 1,014 | 501 |
Total: Unrealized Losses | (5) | (1) |
Investment Securities Held-to-Maturity: | ||
Less than 12 Months: Fair Value | 2,847 | 1,193 |
Less than 12 Months: Unrealized Losses | (9) | (1) |
12 Months or longer: Fair Value | ||
12 Months or longer: Unrealized Losses | ||
Total: Fair Value | 2,847 | 1,193 |
Total: Unrealized Losses | (9) | (1) |
Single Issuer Trust Preferred Security [Member] | ||
Investment Securities Available-for-Sale: | ||
Less than 12 Months: Fair Value | ||
Less than 12 Months: Unrealized Losses | ||
12 Months or longer: Fair Value | 939 | 878 |
12 Months or longer: Unrealized Losses | (61) | (122) |
Total: Fair Value | 939 | 878 |
Total: Unrealized Losses | (61) | (122) |
Corporate Debt Securities [Member] | ||
Investment Securities Available-for-Sale: | ||
Less than 12 Months: Fair Value | 3,078 | 984 |
Less than 12 Months: Unrealized Losses | (55) | (9) |
12 Months or longer: Fair Value | 3,279 | 10,614 |
12 Months or longer: Unrealized Losses | (221) | (325) |
Total: Fair Value | 6,357 | 11,598 |
Total: Unrealized Losses | (276) | (334) |
Investment Securities Held-to-Maturity: | ||
Less than 12 Months: Fair Value | 3,838 | |
Less than 12 Months: Unrealized Losses | (4) | |
12 Months or longer: Fair Value | ||
12 Months or longer: Unrealized Losses | ||
Total: Fair Value | 3,838 | |
Total: Unrealized Losses | (4) | |
Collateralized Mortgage Obligations [Member] | Fixed Rate [Member] | ||
Investment Securities Held-to-Maturity: | ||
Less than 12 Months: Fair Value | 12,953 | 4,342 |
Less than 12 Months: Unrealized Losses | (229) | (17) |
12 Months or longer: Fair Value | 6,940 | 6,283 |
12 Months or longer: Unrealized Losses | (243) | (78) |
Total: Fair Value | 19,893 | 10,625 |
Total: Unrealized Losses | (472) | $ (95) |
U S Government Agencies [Member] | ||
Investment Securities Held-to-Maturity: | ||
Less than 12 Months: Fair Value | 1,993 | |
Less than 12 Months: Unrealized Losses | (6) | |
12 Months or longer: Fair Value | ||
12 Months or longer: Unrealized Losses | ||
Total: Fair Value | 1,993 | |
Total: Unrealized Losses | $ (6) |
Investment Securities (Detail42
Investment Securities (Details 2) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | |
Available for Sale, Amortized Cost: | |||
Due in one year or less | |||
Due after one year through five years | 2,836 | ||
Due after five years through ten years | 10,593 | ||
Due after ten years | 3,659 | ||
Available-for-sale Securities, Amortized Cost Basis, Total | 17,088 | $ 65,940 | |
Available for Sale, Fair Value: | |||
Due in one year or less | |||
Due after one year through five years | 2,841 | ||
Due after five years through ten years | 10,343 | ||
Due after ten years | 3,627 | ||
Available-for-sale Securities, Fair value, Total | [1] | 16,811 | 66,387 |
Held-to-Maturity, Amortized Cost: | |||
Due after one year through five years | 1,999 | ||
Due after five years through ten years | 5,861 | ||
Due after ten years | 28,167 | ||
Held-to-maturity Securities, Amortized Cost, Total | 36,027 | 40,551 | |
Held-to-Maturity, Fair Value: | |||
Due after one year through five years | 1,992 | ||
Due after five years through ten years | 5,918 | ||
Due after ten years | 27,715 | ||
Held-to-maturity Securities, Fair Value, Total | 35,625 | $ 40,817 | |
Total Investment Securities, Amortized Cost | 53,115 | ||
Total Investment Securities, Fair Value | $ 52,436 | ||
[1] | Restated |
Investment Securities (Detail43
Investment Securities (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale of securities available for sale | $ 48,900 | $ 50,500 | |
Available-for-sale securities, gross realized gains | 432 | 451 | |
Available-for-sale securities, gross realized losses | $ 30 | ||
Fair value of available for sale securities trasferred | $ 493 | $ 552 |
Investment Securities (Detail44
Investment Securities (Details Narrative 1) | Jun. 30, 2017Security |
U S Government Agencies [Member] | |
Schedule of Investments [Line Items] | |
Number of securities held in an unrealized loss position | 2 |
State And Municipal Obligations [Member] | |
Schedule of Investments [Line Items] | |
Number of securities held in an unrealized loss position | 4 |
Corporate Debt Securities [Member] | |
Schedule of Investments [Line Items] | |
Number of securities held in an unrealized loss position | 4 |
Mortgage Backed Securities [Member] | |
Schedule of Investments [Line Items] | |
Number of securities held in an unrealized loss position | 36 |
Single Issuer Trust Preferred Security [Member] | |
Schedule of Investments [Line Items] | |
Number of securities held in an unrealized loss position | 1 |
Loans Receivable and Related 45
Loans Receivable and Related Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | |
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | $ 807,567 | $ 578,386 | $ 558,159 | ||||
Deferred loan fees and cost, net | 687 | 1,208 | |||||
Allowance for loan losses | (7,917) | $ (7,181) | (5,434) | (5,343) | $ (4,937) | $ (4,667) | |
Total loans receivable, net | [1] | 800,337 | 574,160 | ||||
Residential Mortgage [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 190,788 | 209,186 | 210,621 | ||||
Allowance for loan losses | (1,020) | (1,042) | (1,201) | (1,226) | (1,399) | (1,486) | |
Construction and Development - Residential and Commercial Receivables [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 36,530 | 18,579 | 14,050 | ||||
Allowance for loan losses | (683) | (1,343) | (199) | (258) | (74) | (30) | |
Construction And Development - Land Receivable [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 18,325 | 10,013 | 9,904 | ||||
Allowance for loan losses | (146) | (128) | (97) | (122) | (106) | (35) | |
Construction And Development Receivable [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 54,855 | 28,592 | |||||
Commercial Real Estate [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 424,732 | 231,439 | 211,516 | ||||
Allowance for loan losses | (2,706) | (2,479) | (1,874) | (1,795) | (1,529) | (1,235) | |
Total loans receivable, net | 1,300 | ||||||
Commercial Multi Family Receivable [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 21,547 | 19,515 | 20,102 | ||||
Allowance for loan losses | (112) | (67) | (109) | (138) | (151) | (104) | |
Commercial - Other Receivable [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 71,248 | 38,779 | 37,091 | ||||
Allowance for loan losses | (406) | (369) | (158) | (156) | (193) | (108) | |
Commercial [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 519,261 | 289,733 | |||||
Consumer - Home Equity Lines of Credit [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 17,602 | 19,757 | 21,035 | ||||
Allowance for loan losses | (97) | (107) | (116) | (125) | (133) | (139) | |
Consumer - Second Mortgages Receivable [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 23,658 | 29,204 | 31,752 | ||||
Allowance for loan losses | (376) | (415) | (467) | (523) | (580) | (761) | |
Consumer - Other Receivable [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 1,403 | 1,914 | 2,088 | ||||
Allowance for loan losses | (17) | (20) | (34) | $ (32) | $ (29) | $ (24) | |
Consumer Receivable [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 42,663 | 50,875 | |||||
Commercial Farmland [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | 1,734 | ||||||
Allowance for loan losses | $ (10) | ||||||
[1] | Restated |
Loans Receivable and Related 46
Loans Receivable and Related Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses, beginning balance | $ 7,181 | $ 4,937 | $ 5,434 | $ 4,667 | $ 4,667 | ||
Charge-offs | (64) | (102) | (190) | (508) | (560) | ||
Recoveries | 155 | 36 | 371 | 337 | 380 | ||
Provision (Credit) | 645 | [1] | 472 | 2,302 | [1] | 847 | 947 |
Allowance for loan losses, ending balance | 7,917 | 5,343 | 7,917 | 5,343 | 5,434 | ||
Allowance for loan losses: ending balance: individually evaluated for impairment | 182 | 24 | 182 | 24 | 23 | ||
Allowance for loan losses: ending balance: collectively evaluated for impairment | 7,735 | 5,319 | 7,735 | 5,319 | 5,411 | ||
Loans receivable, ending balance | 807,567 | 558,159 | 807,567 | 558,159 | 578,386 | ||
Loans receivable: ending balance: individually evaluated for impairment | 3,405 | 2,998 | 3,405 | 2,998 | 3,658 | ||
Loans Receivable: ending balance: collectively evaluated for impairment | 804,162 | 555,161 | 804,162 | 555,161 | 574,728 | ||
Residential Mortgage [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses, beginning balance | 1,042 | 1,399 | 1,201 | 1,486 | 1,486 | ||
Charge-offs | (9) | (9) | |||||
Recoveries | 2 | (23) | 2 | 17 | 17 | ||
Provision (Credit) | (24) | (150) | (183) | (268) | (293) | ||
Allowance for loan losses, ending balance | 1,020 | 1,226 | 1,020 | 1,226 | 1,201 | ||
Allowance for loan losses: ending balance: individually evaluated for impairment | |||||||
Allowance for loan losses: ending balance: collectively evaluated for impairment | 1,020 | 1,226 | 1,020 | 1,226 | 1,201 | ||
Loans receivable, ending balance | 190,788 | 210,621 | 190,788 | 210,621 | 209,186 | ||
Loans receivable: ending balance: individually evaluated for impairment | 2,089 | 787 | 2,089 | 787 | 1,159 | ||
Loans Receivable: ending balance: collectively evaluated for impairment | 188,699 | 209,834 | 188,699 | 209,834 | 208,027 | ||
Construction and Development - Residential and Commercial Receivables [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses, beginning balance | 1,343 | 74 | 199 | 30 | 30 | ||
Charge-offs | (91) | (91) | (91) | ||||
Recoveries | 39 | 90 | 243 | 243 | |||
Provision (Credit) | (660) | 236 | 394 | 76 | 17 | ||
Allowance for loan losses, ending balance | 683 | 258 | 683 | 258 | 199 | ||
Allowance for loan losses: ending balance: individually evaluated for impairment | |||||||
Allowance for loan losses: ending balance: collectively evaluated for impairment | 683 | 258 | 683 | 258 | 199 | ||
Loans receivable, ending balance | 36,530 | 14,050 | 36,530 | 14,050 | 18,579 | ||
Loans receivable: ending balance: individually evaluated for impairment | 97 | 109 | 97 | 109 | 109 | ||
Loans Receivable: ending balance: collectively evaluated for impairment | 36,433 | 13,941 | 36,433 | 13,941 | 18,470 | ||
Construction And Development - Land Receivable [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses, beginning balance | 128 | 106 | 97 | 35 | 35 | ||
Charge-offs | |||||||
Recoveries | |||||||
Provision (Credit) | 18 | 16 | 49 | 87 | 62 | ||
Allowance for loan losses, ending balance | 146 | 122 | 146 | 122 | 97 | ||
Allowance for loan losses: ending balance: individually evaluated for impairment | |||||||
Allowance for loan losses: ending balance: collectively evaluated for impairment | 146 | 122 | 146 | 122 | 97 | ||
Loans receivable, ending balance | 18,325 | 9,904 | 18,325 | 9,904 | 10,013 | ||
Loans receivable: ending balance: individually evaluated for impairment | |||||||
Loans Receivable: ending balance: collectively evaluated for impairment | 18,325 | 9,904 | 18,325 | 9,904 | 10,013 | ||
Commercial Real Estate [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses, beginning balance | 2,479 | 1,529 | 1,874 | 1,235 | 1,235 | ||
Charge-offs | (99) | (99) | |||||
Recoveries | 9 | 39 | 3 | 3 | |||
Provision (Credit) | 218 | 266 | 793 | 656 | 735 | ||
Allowance for loan losses, ending balance | 2,706 | 1,795 | 2,706 | 1,795 | 1,874 | ||
Allowance for loan losses: ending balance: individually evaluated for impairment | |||||||
Allowance for loan losses: ending balance: collectively evaluated for impairment | 2,706 | 1,795 | 2,706 | 1,795 | 1,874 | ||
Loans receivable, ending balance | 424,732 | 211,516 | 424,732 | 211,516 | 231,439 | ||
Loans receivable: ending balance: individually evaluated for impairment | 744 | 1,850 | 744 | 1,850 | 2,039 | ||
Loans Receivable: ending balance: collectively evaluated for impairment | 423,988 | 209,666 | 423,988 | 209,666 | 229,400 | ||
Commercial Multi Family Receivable [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses, beginning balance | 67 | 151 | 109 | 104 | 104 | ||
Charge-offs | |||||||
Recoveries | |||||||
Provision (Credit) | 45 | (13) | 3 | 34 | 5 | ||
Allowance for loan losses, ending balance | 112 | 138 | 112 | 138 | 109 | ||
Allowance for loan losses: ending balance: individually evaluated for impairment | |||||||
Allowance for loan losses: ending balance: collectively evaluated for impairment | 112 | 138 | 112 | 138 | 109 | ||
Loans receivable, ending balance | 21,547 | 20,102 | 21,547 | 20,102 | 19,515 | ||
Loans receivable: ending balance: individually evaluated for impairment | |||||||
Loans Receivable: ending balance: collectively evaluated for impairment | 21,547 | 20,102 | 21,547 | 20,102 | 19,515 | ||
Commercial - Other Receivable [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses, beginning balance | 369 | 193 | 158 | 108 | 108 | ||
Charge-offs | |||||||
Recoveries | 2 | 8 | 2 | 3 | |||
Provision (Credit) | 35 | (37) | 240 | 46 | 47 | ||
Allowance for loan losses, ending balance | 406 | 156 | 406 | 156 | 158 | ||
Allowance for loan losses: ending balance: individually evaluated for impairment | 112 | 112 | |||||
Allowance for loan losses: ending balance: collectively evaluated for impairment | 294 | 156 | 294 | 156 | 158 | ||
Loans receivable, ending balance | 71,248 | 37,091 | 71,248 | 37,091 | 38,779 | ||
Loans receivable: ending balance: individually evaluated for impairment | 246 | 246 | |||||
Loans Receivable: ending balance: collectively evaluated for impairment | 71,002 | 37,091 | 71,002 | 37,091 | 38,779 | ||
Consumer - Home Equity Lines of Credit [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses, beginning balance | 107 | 133 | 116 | 139 | 139 | ||
Charge-offs | |||||||
Recoveries | 15 | 1 | 17 | 1 | 1 | ||
Provision (Credit) | (25) | (9) | (36) | (15) | (24) | ||
Allowance for loan losses, ending balance | 97 | 125 | 97 | 125 | 116 | ||
Allowance for loan losses: ending balance: individually evaluated for impairment | |||||||
Allowance for loan losses: ending balance: collectively evaluated for impairment | 97 | 125 | 97 | 125 | 116 | ||
Loans receivable, ending balance | 17,602 | 21,035 | 17,602 | 21,035 | 19,757 | ||
Loans receivable: ending balance: individually evaluated for impairment | 10 | 20 | 10 | 20 | 74 | ||
Loans Receivable: ending balance: collectively evaluated for impairment | 17,592 | 21,015 | 17,592 | 21,015 | 19,683 | ||
Consumer - Second Mortgages Receivable [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses, beginning balance | 415 | 580 | 467 | 761 | 761 | ||
Charge-offs | (64) | (185) | (255) | (291) | |||
Recoveries | 123 | 15 | 205 | 59 | 100 | ||
Provision (Credit) | (98) | (72) | (111) | (42) | (103) | ||
Allowance for loan losses, ending balance | 376 | 523 | 376 | 523 | 467 | ||
Allowance for loan losses: ending balance: individually evaluated for impairment | 70 | 24 | 70 | 24 | 23 | ||
Allowance for loan losses: ending balance: collectively evaluated for impairment | 306 | 499 | 306 | 499 | 444 | ||
Loans receivable, ending balance | 23,658 | 31,752 | 23,658 | 31,752 | 29,204 | ||
Loans receivable: ending balance: individually evaluated for impairment | 219 | 232 | 219 | 232 | 277 | ||
Loans Receivable: ending balance: collectively evaluated for impairment | 23,439 | 31,520 | 23,439 | 31,520 | 28,927 | ||
Consumer - Other Receivable [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses, beginning balance | 20 | 29 | 34 | 24 | 24 | ||
Charge-offs | (11) | (5) | (54) | (70) | |||
Recoveries | 4 | 4 | 10 | 12 | 13 | ||
Provision (Credit) | (7) | 10 | (22) | 50 | 67 | ||
Allowance for loan losses, ending balance | 17 | 32 | 17 | 32 | 34 | ||
Allowance for loan losses: ending balance: individually evaluated for impairment | |||||||
Allowance for loan losses: ending balance: collectively evaluated for impairment | 17 | 32 | 17 | 32 | 34 | ||
Loans receivable, ending balance | 1,403 | 2,088 | 1,403 | 2,088 | 1,914 | ||
Loans receivable: ending balance: individually evaluated for impairment | |||||||
Loans Receivable: ending balance: collectively evaluated for impairment | 1,403 | 2,088 | 1,403 | 2,088 | 1,914 | ||
Unallocated [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses, beginning balance | 1,211 | 743 | 1,179 | 745 | 745 | ||
Charge-offs | |||||||
Recoveries | |||||||
Provision (Credit) | 1,133 | 225 | 1,165 | 223 | 434 | ||
Allowance for loan losses, ending balance | 2,344 | 968 | 2,344 | 968 | 1,179 | ||
Allowance for loan losses: ending balance: individually evaluated for impairment | |||||||
Allowance for loan losses: ending balance: collectively evaluated for impairment | 2,344 | $ 968 | 2,344 | $ 968 | 1,179 | ||
Commercial Farmland [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses, beginning balance | |||||||
Charge-offs | |||||||
Recoveries | |||||||
Provision (Credit) | 10 | 10 | |||||
Allowance for loan losses, ending balance | 10 | 10 | |||||
Allowance for loan losses: ending balance: individually evaluated for impairment | |||||||
Allowance for loan losses: ending balance: collectively evaluated for impairment | 10 | 10 | |||||
Loans receivable, ending balance | 1,734 | 1,734 | |||||
Loans receivable: ending balance: individually evaluated for impairment | |||||||
Loans Receivable: ending balance: collectively evaluated for impairment | $ 1,734 | $ 1,734 | |||||
[1] | Restated |
Loans Receivable and Related 47
Loans Receivable and Related Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | $ 358 | $ 31 |
Impaired Loans With Specific Allowance, Related Allowance | 182 | 23 |
Impaired Loans With No Specific Allowance, Recorded Investment | 3,047 | 3,627 |
Total Impaired Loans Recorded Investment | 3,405 | 3,658 |
Total Impaired Loans Unpaid Principal Balance | 3,577 | 3,914 |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | ||
Impaired Loans With Specific Allowance, Related Allowance | ||
Impaired Loans With No Specific Allowance, Recorded Investment | 2,089 | 1,159 |
Total Impaired Loans Recorded Investment | 2,089 | 1,159 |
Total Impaired Loans Unpaid Principal Balance | 2,222 | 1,225 |
Construction and Development - Residential and Commercial Receivables [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | ||
Impaired Loans With Specific Allowance, Related Allowance | ||
Impaired Loans With No Specific Allowance, Recorded Investment | 97 | 109 |
Total Impaired Loans Recorded Investment | 97 | 109 |
Total Impaired Loans Unpaid Principal Balance | 97 | 109 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | ||
Impaired Loans With Specific Allowance, Related Allowance | ||
Impaired Loans With No Specific Allowance, Recorded Investment | 744 | 2,039 |
Total Impaired Loans Recorded Investment | 744 | 2,039 |
Total Impaired Loans Unpaid Principal Balance | 754 | 2,039 |
Consumer - Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | ||
Impaired Loans With Specific Allowance, Related Allowance | ||
Impaired Loans With No Specific Allowance, Recorded Investment | 10 | 74 |
Total Impaired Loans Recorded Investment | 10 | 74 |
Total Impaired Loans Unpaid Principal Balance | 11 | 90 |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | 112 | 31 |
Impaired Loans With Specific Allowance, Related Allowance | 70 | 23 |
Impaired Loans With No Specific Allowance, Recorded Investment | 107 | 246 |
Total Impaired Loans Recorded Investment | 219 | 277 |
Total Impaired Loans Unpaid Principal Balance | 247 | $ 451 |
Commercial - Other Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans With Specific Allowance, Recorded Investment | 246 | |
Impaired Loans With Specific Allowance, Related Allowance | 112 | |
Impaired Loans With No Specific Allowance, Recorded Investment | ||
Total Impaired Loans Recorded Investment | 246 | |
Total Impaired Loans Unpaid Principal Balance | $ 246 |
Loans Receivable and Related 48
Loans Receivable and Related Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Loans | $ 3,413 | $ 2,798 | $ 3,584 | $ 2,563 |
Interest Income Recognized on Impaired Loans | 21 | 18 | 65 | 51 |
Residential Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Loans | 2,099 | 712 | 2,091 | 641 |
Interest Income Recognized on Impaired Loans | 10 | 43 | ||
Construction and Development - Residential and Commercial Receivables [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Loans | 104 | 251 | 107 | 164 |
Interest Income Recognized on Impaired Loans | 2 | 1 | 4 | 3 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Loans | 747 | 1,593 | 1,038 | 1,534 |
Interest Income Recognized on Impaired Loans | 6 | 17 | 14 | 48 |
Commercial - Other Receivable [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Loans | 248 | 111 | ||
Interest Income Recognized on Impaired Loans | 2 | 2 | ||
Consumer - Home Equity Lines of Credit [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Loans | 10 | 20 | 47 | 20 |
Interest Income Recognized on Impaired Loans | ||||
Consumer - Second Mortgages Receivable [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Impaired Loans | 205 | 222 | 190 | 204 |
Interest Income Recognized on Impaired Loans | $ 1 | $ 2 |
Loans Receivable and Related 49
Loans Receivable and Related Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 |
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | $ 807,567 | $ 578,386 | $ 558,159 |
Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 190,788 | 209,186 | 210,621 |
Construction and Development - Residential and Commercial Receivables [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 36,530 | 18,579 | 14,050 |
Construction And Development - Land Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 18,325 | 10,013 | 9,904 |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 424,732 | 231,439 | 211,516 |
Commercial Multi Family Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 21,547 | 19,515 | 20,102 |
Commercial - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 71,248 | 38,779 | 37,091 |
Consumer - Home Equity Lines of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 17,602 | 19,757 | 21,035 |
Consumer - Second Mortgages Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 23,658 | 29,204 | 31,752 |
Consumer - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 1,403 | 1,914 | $ 2,088 |
Commercial Farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 1,734 | ||
Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 789,465 | 564,586 | |
Pass [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 188,265 | 207,880 | |
Pass [Member] | Construction and Development - Residential and Commercial Receivables [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 36,433 | 18,470 | |
Pass [Member] | Construction And Development - Land Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 12,537 | 10,013 | |
Pass [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 417,197 | 221,742 | |
Pass [Member] | Commercial Multi Family Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 21,179 | 19,303 | |
Pass [Member] | Commercial - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 70,346 | 37,848 | |
Pass [Member] | Consumer - Home Equity Lines of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 17,492 | 19,584 | |
Pass [Member] | Consumer - Second Mortgages Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 22,886 | 27,843 | |
Pass [Member] | Consumer - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 1,396 | 1,903 | |
Pass [Member] | Commercial Farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 1,734 | ||
Special Mention [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 5,966 | 5,713 | |
Special Mention [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 116 | 122 | |
Special Mention [Member] | Construction and Development - Residential and Commercial Receivables [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Special Mention [Member] | Construction And Development - Land Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Special Mention [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 5,361 | 4,990 | |
Special Mention [Member] | Commercial Multi Family Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 368 | 212 | |
Special Mention [Member] | Commercial - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 259 | ||
Special Mention [Member] | Consumer - Home Equity Lines of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Special Mention [Member] | Consumer - Second Mortgages Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 114 | 119 | |
Special Mention [Member] | Consumer - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 7 | 11 | |
Special Mention [Member] | Commercial Farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 12,136 | 8,087 | |
Substandard [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 2,407 | 1,184 | |
Substandard [Member] | Construction and Development - Residential and Commercial Receivables [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 97 | 109 | |
Substandard [Member] | Construction And Development - Land Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 5,788 | ||
Substandard [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 2,174 | 4,707 | |
Substandard [Member] | Commercial Multi Family Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Substandard [Member] | Commercial - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 902 | 672 | |
Substandard [Member] | Consumer - Home Equity Lines of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 110 | 173 | |
Substandard [Member] | Consumer - Second Mortgages Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | 658 | 1,242 | |
Substandard [Member] | Consumer - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Substandard [Member] | Commercial Farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Doubtful [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Doubtful [Member] | Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Doubtful [Member] | Construction and Development - Residential and Commercial Receivables [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Doubtful [Member] | Construction And Development - Land Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Doubtful [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Doubtful [Member] | Commercial Multi Family Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Doubtful [Member] | Commercial - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Doubtful [Member] | Consumer - Home Equity Lines of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Doubtful [Member] | Consumer - Second Mortgages Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Doubtful [Member] | Consumer - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross | |||
Doubtful [Member] | Commercial Farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Loans and Leases, gross |
Loans Receivable and Related 50
Loans Receivable and Related Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | $ 1,566 | $ 1,617 |
Residential Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | 1,225 | 1,072 |
Commercial Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | 184 | 193 |
Consumer - Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | 10 | 74 |
Consumer - Second Mortgages Receivable [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total non-accrual loans | $ 137 | $ 278 |
Loans Receivable and Related 51
Loans Receivable and Related Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 |
Financing Receivable, Impaired [Line Items] | |||
Current | $ 800,933 | $ 571,774 | |
Past Due | 6,634 | 6,612 | |
Total Loans Receivable | 807,567 | 578,386 | $ 558,159 |
Accruing 90 Days or More Past Due | 321 | 696 | |
30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 4,415 | 2,740 | |
60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 889 | 1,954 | |
Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 1,330 | 1,918 | |
Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 186,017 | 204,816 | |
Past Due | 4,771 | 4,370 | |
Total Loans Receivable | 190,788 | 209,186 | 210,621 |
Accruing 90 Days or More Past Due | 184 | 509 | |
Residential Mortgage [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 2,968 | 1,750 | |
Residential Mortgage [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 673 | 1,345 | |
Residential Mortgage [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 1,130 | 1,275 | |
Construction and Development - Residential and Commercial Receivables [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 36,530 | 18,579 | |
Past Due | |||
Total Loans Receivable | 36,530 | 18,579 | 14,050 |
Accruing 90 Days or More Past Due | |||
Construction and Development - Residential and Commercial Receivables [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Construction and Development - Residential and Commercial Receivables [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Construction and Development - Residential and Commercial Receivables [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Construction And Development - Land Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 18,325 | 10,013 | |
Past Due | |||
Total Loans Receivable | 18,325 | 10,013 | 9,904 |
Accruing 90 Days or More Past Due | |||
Construction And Development - Land Receivable [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Construction And Development - Land Receivable [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Construction And Development - Land Receivable [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 424,181 | 231,059 | |
Past Due | 551 | 380 | |
Total Loans Receivable | 424,732 | 231,439 | 211,516 |
Accruing 90 Days or More Past Due | 187 | ||
Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 551 | ||
Commercial Real Estate [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Commercial Real Estate [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 380 | ||
Commercial Multi Family Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 21,547 | 19,515 | |
Past Due | |||
Total Loans Receivable | 21,547 | 19,515 | 20,102 |
Accruing 90 Days or More Past Due | |||
Commercial Multi Family Receivable [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Commercial Multi Family Receivable [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Commercial Multi Family Receivable [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Commercial - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 71,248 | 38,433 | |
Past Due | 346 | ||
Total Loans Receivable | 71,248 | 38,779 | 37,091 |
Accruing 90 Days or More Past Due | |||
Commercial - Other Receivable [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 346 | ||
Commercial - Other Receivable [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Commercial - Other Receivable [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Consumer - Home Equity Lines of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 17,359 | 19,513 | |
Past Due | 243 | 244 | |
Total Loans Receivable | 17,602 | 19,757 | 21,035 |
Accruing 90 Days or More Past Due | |||
Consumer - Home Equity Lines of Credit [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 132 | 170 | |
Consumer - Home Equity Lines of Credit [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 111 | 43 | |
Consumer - Home Equity Lines of Credit [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 31 | ||
Consumer - Second Mortgages Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 22,590 | 27,933 | |
Past Due | 1,068 | 1,271 | |
Total Loans Receivable | 23,658 | 29,204 | 31,752 |
Accruing 90 Days or More Past Due | 137 | ||
Consumer - Second Mortgages Receivable [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 764 | 473 | |
Consumer - Second Mortgages Receivable [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 104 | 566 | |
Consumer - Second Mortgages Receivable [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 200 | 232 | |
Consumer - Other Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 1,402 | 1,913 | |
Past Due | 1 | 1 | |
Total Loans Receivable | 1,403 | 1,914 | $ 2,088 |
Accruing 90 Days or More Past Due | |||
Consumer - Other Receivable [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 1 | ||
Consumer - Other Receivable [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 1 | ||
Consumer - Other Receivable [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Commercial Farmland [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 1,734 | ||
Past Due | |||
Total Loans Receivable | 1,734 | ||
Commercial Farmland [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Commercial Farmland [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | |||
Commercial Farmland [Member] | Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due |
Loans Receivable and Related 52
Loans Receivable and Related Allowance for Loan Losses (Details 7) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2017USD ($)LoanNumber | Sep. 30, 2016USD ($)LoanNumber | |
Total Troubled Debt Restructurings, Number of Loans | Loan | 11 | 7 |
Total Troubled Debt Restructurings, Recorded Investment | $ 2,035 | $ 2,178 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Number of Loans | Number | 3 | 1 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Recorded Investment | $ 432 | $ 139 |
Residential Mortgage [Member] | ||
Total Troubled Debt Restructurings, Number of Loans | 5 | 2 |
Total Troubled Debt Restructurings, Recorded Investment | $ 1,117 | $ 224 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Number of Loans | Number | 1 | 1 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Recorded Investment | $ 225 | $ 139 |
Construction and Development - Residential and Commercial Receivables [Member] | ||
Total Troubled Debt Restructurings, Number of Loans | Number | 1 | 1 |
Total Troubled Debt Restructurings, Recorded Investment | $ 97 | $ 109 |
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Number of Loans | Number | ||
Troubled Debt Restructured Loans That Have Defaulted on Modified Terms Within The Past 12 Months, Recorded Investment | ||
Commercial Real Estate [Member] | ||
Total Troubled Debt Restructurings, Number of Loans | Number | 3 | 4 |
Total Troubled Debt Restructurings, Recorded Investment | $ 744 | $ 1,845 |
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 | $ 184 | |
Consumer - Second Mortgages Receivable [Member] | ||
Total Troubled Debt Restructurings, Number of Loans | Loan | 2 | |
Total Troubled Debt Restructurings, Recorded Investment | $ 77 | |
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 | $ 23 |
Loans Receivable and Related 53
Loans Receivable and Related Allowance for Loan Losses (Details 8) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 |
Recorded Investment | $ 2,035 | $ 2,178 | |
Performing Financing Receivable [Member] | |||
Recorded Investment | 1,603 | 2,039 | |
Nonperforming Financing Receivable [Member] | |||
Recorded Investment | 432 | 139 | |
Residential Mortgage [Member] | |||
Recorded Investment | 1,117 | 224 | |
Residential Mortgage [Member] | Performing Financing Receivable [Member] | |||
Recorded Investment | 892 | 85 | |
Residential Mortgage [Member] | Nonperforming Financing Receivable [Member] | |||
Recorded Investment | 225 | 139 | |
Construction and Development - Residential and Commercial Receivables [Member] | |||
Recorded Investment | 97 | 109 | |
Construction and Development - Residential and Commercial Receivables [Member] | Performing Financing Receivable [Member] | |||
Recorded Investment | 97 | 109 | |
Construction and Development - Residential and Commercial Receivables [Member] | Nonperforming Financing Receivable [Member] | |||
Recorded Investment | |||
Commercial Real Estate [Member] | |||
Recorded Investment | 744 | 1,845 | |
Commercial Real Estate [Member] | Performing Financing Receivable [Member] | |||
Recorded Investment | 560 | 1,845 | |
Commercial Real Estate [Member] | Nonperforming Financing Receivable [Member] | |||
Recorded Investment | 184 | ||
Consumer - Second Mortgages Receivable [Member] | |||
Recorded Investment | 77 | ||
Consumer - Second Mortgages Receivable [Member] | Performing Financing Receivable [Member] | |||
Recorded Investment | 54 | ||
Consumer - Second Mortgages Receivable [Member] | Nonperforming Financing Receivable [Member] | |||
Recorded Investment | $ 23 |
Loans Receivable and Related 54
Loans Receivable and Related Allowance for Loan Losses (Details 9) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017USD ($)Number | Jun. 30, 2016USD ($)Number | Jun. 30, 2017USD ($)Number | Jun. 30, 2016USD ($)Number | |
Number of loans | Number | 1 | 6 | 1 | |
Pre-Modifications Outstanding Recorded Investments | $ 386 | $ 1,163 | $ 386 | |
Post-Modifications Outstanding Recorded Investments | $ 386 | $ 1,163 | 386 | |
Residential Mortgage [Member] | ||||
Number of loans | Number | 3 | |||
Pre-Modifications Outstanding Recorded Investments | $ 889 | |||
Post-Modifications Outstanding Recorded Investments | $ 889 | |||
Commercial Real Estate [Member] | ||||
Number of loans | Number | 1 | 1 | 1 | |
Pre-Modifications Outstanding Recorded Investments | $ 386 | $ 193 | $ 386 | |
Post-Modifications Outstanding Recorded Investments | $ 386 | $ 193 | 386 | |
Consumer - Second Mortgages Receivable [Member] | ||||
Number of loans | Number | 2 | |||
Pre-Modifications Outstanding Recorded Investments | $ 81 | |||
Post-Modifications Outstanding Recorded Investments | $ 81 |
Loans Receivable and Related 55
Loans Receivable and Related Allowance for Loan Losses (Details Narrative) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)LoanNumber | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($)LoanNumber | ||
Non accrual loans interest income | $ 6 | $ 12 | $ 33 | $ 29 | ||
Number of loans | Loan | 11 | 7 | ||||
Recorded Investment | 2,035 | $ 2,035 | $ 2,178 | |||
Loan outstanding balance | [1] | 800,337 | 800,337 | 574,160 | ||
Loans past due 90 days or more and still accruing interest | 321 | 321 | 696 | |||
Performing Financing Receivable [Member] | ||||||
Recorded Investment | 1,603 | 1,603 | 2,039 | |||
Nonperforming Financing Receivable [Member] | ||||||
Recorded Investment | 432 | $ 432 | $ 139 | |||
Commercial Real Estate [Member] | ||||||
Number of loans | Number | 3 | 4 | ||||
Recorded Investment | 744 | $ 744 | $ 1,845 | |||
Number of loans sold | Number | 2 | |||||
Loan outstanding balance | 1,300 | $ 1,300 | ||||
Loans past due 90 days or more and still accruing interest | 187 | |||||
Commercial Real Estate [Member] | Performing Financing Receivable [Member] | ||||||
Recorded Investment | 560 | 560 | 1,845 | |||
Commercial Real Estate [Member] | Nonperforming Financing Receivable [Member] | ||||||
Recorded Investment | 184 | 184 | ||||
Loan outstanding balance | 184 | $ 184 | ||||
Construction and Development - Residential and Commercial Receivables [Member] | ||||||
Number of loans | Number | 1 | 1 | ||||
Recorded Investment | 97 | $ 97 | $ 109 | |||
Real estate through foreclosure | 579 | 579 | 141 | |||
Loans past due 90 days or more and still accruing interest | ||||||
Construction and Development - Residential and Commercial Receivables [Member] | Performing Financing Receivable [Member] | ||||||
Recorded Investment | 97 | 97 | 109 | |||
Construction and Development - Residential and Commercial Receivables [Member] | Nonperforming Financing Receivable [Member] | ||||||
Recorded Investment | ||||||
Residential Mortgage [Member] | ||||||
Number of loans | 5 | 2 | ||||
Recorded Investment | 1,117 | $ 1,117 | $ 224 | |||
Loans past due 90 days or more and still accruing interest | 184 | 184 | 509 | |||
Residential Mortgage [Member] | Performing Financing Receivable [Member] | ||||||
Recorded Investment | 892 | 892 | 85 | |||
Loan outstanding balance | 653 | 653 | ||||
Residential Mortgage [Member] | Nonperforming Financing Receivable [Member] | ||||||
Recorded Investment | 225 | 225 | $ 139 | |||
Loan outstanding balance | 225 | $ 225 | ||||
Consumer - Second Mortgages Receivable [Member] | ||||||
Number of loans | Loan | 2 | |||||
Recorded Investment | 77 | $ 77 | ||||
Loans past due 90 days or more and still accruing interest | 137 | 137 | ||||
Consumer - Second Mortgages Receivable [Member] | Performing Financing Receivable [Member] | ||||||
Recorded Investment | 54 | 54 | ||||
Loan outstanding balance | 54 | 54 | ||||
Consumer - Second Mortgages Receivable [Member] | Nonperforming Financing Receivable [Member] | ||||||
Recorded Investment | 23 | 23 | ||||
Loan outstanding balance | $ 23 | $ 23 | ||||
[1] | Restated |
Employee Stock Ownership Plan (
Employee Stock Ownership Plan (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2008 | Jun. 30, 2017 | Jun. 30, 2016 | |
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 | $ 2,600 | ||||
Average price of shares purchased (in dollars per share) | $ 10.86 | ||||
Employee stock ownership plan (ESOP), debt structure, direct loan, description | The loan, which bears an interest rate of 5%, is being repaid in quarterly installments through 2026. | ||||
Committed to be released ESOP shares | 3,600 | 3,600 | 10,800 | 10,800 | |
Number of unallocated shares | 132,765 | 132,765 | |||
Number of allocated shares held by the ESOP | 126,453 | 126,453 | |||
Aggregate fair value of shares held by the ESOP | $ 3,200 | $ 3,200 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | Jan. 02, 2016 | Jan. 02, 2015 |
Parent Company [Member] | ||||
Capital (to adjusted tangible assets): Actual Amount | $ 98,085 | $ 91,876 | ||
Common equity Tier 1(to risk-weighted assets): Actual Amount | 98,085 | 91,876 | ||
Tier 1 Capital (to risk-weighted assets): Actual Amount | 98,085 | 91,876 | ||
Total Capital (to risk-weighted assets): Actual Amount | $ 130,327 | $ 97,372 | ||
Capital (to adjusted tangible assets): Actual Ratio | 10.05% | 11.64% | ||
Common equity Tier 1(to risk-weighted assets): Actual Ratio | 12.38% | 15.37% | ||
Tier 1 Capital (to risk-weighted assets): Actual Ratio | 12.38% | 15.37% | ||
Total Capital (to risk-weighted assets): Actual Ratio | 16.45% | 16.29% | ||
Capital (to adjusted tangible assets): For Capital Adequacy Purposes Amount | $ 39,026 | $ 31,561 | ||
Common equity Tier 1(to risk-weighted assets): For Capital Adequacy Purposes Amount | 35,646 | 26,894 | ||
Tier 1 Capital (to risk-weighted assets): For Capital Adequacy Purposes Amount | 47,529 | 35,859 | ||
Total Capital (to risk-weighted assets): For Capital Adequacy Purposes Amount | $ 63,371 | $ 47,812 | ||
Capital (to adjusted tangible assets): For Capital Adequacy Purposes Ratio | 4.00% | 4.00% | ||
Common equity Tier 1(to risk-weighted assets): For Capital Adequacy Purposes Ratio | 4.50% | 4.50% | ||
Tier 1 Capital (to risk-weighted assets): For Capital Adequacy Purposes Ratio | 6.00% | 6.00% | ||
Total Capital (to risk-weighted assets): For Capital Adequacy Purposes Ratio | 8.00% | 8.00% | ||
Capital (to adjusted tangible assets): To be Well Capitalized under Prompt Corrective Action Provisions Capital Amount | $ 48,783 | $ 39,452 | ||
Common equity Tier 1(to risk-weighted assets): To be Well Capitalized under Prompt Corrective Action Provisions Capital Amount | 51,489 | 38,847 | ||
Tier 1 Capital (to risk-weighted assets): To be Well Capitalized under Prompt Corrective Action Provisions Capital Amount | 63,371 | 47,812 | ||
Total Capital (to risk-weighted assets): To be Well Capitalized under Prompt Corrective Action Provisions Capital Amount | $ 79,214 | $ 59,765 | ||
Capital (to adjusted tangible assets): To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% | ||
Common equity Tier 1(to risk-weighted assets): To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% | ||
Tier 1 Capital (to risk-weighted assets): To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% | ||
Total Capital (to risk-weighted assets): To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% | ||
Malvern Federal Savings Bank [Member] | ||||
Capital (to adjusted tangible assets): Actual Amount | $ 116,795 | $ 86,596 | ||
Common equity Tier 1(to risk-weighted assets): Actual Amount | 116,795 | 86,596 | ||
Tier 1 Capital (to risk-weighted assets): Actual Amount | 116,795 | 86,596 | ||
Total Capital (to risk-weighted assets): Actual Amount | $ 124,775 | $ 92,092 | ||
Capital (to adjusted tangible assets): Actual Ratio | 11.99% | 10.98% | ||
Common equity Tier 1(to risk-weighted assets): Actual Ratio | 14.79% | 14.50% | ||
Tier 1 Capital (to risk-weighted assets): Actual Ratio | 14.79% | 14.50% | ||
Total Capital (to risk-weighted assets): Actual Ratio | 15.80% | 15.42% | 10.50% | |
Capital (to adjusted tangible assets): For Capital Adequacy Purposes Amount | $ 38,980 | $ 31,533 | ||
Common equity Tier 1(to risk-weighted assets): For Capital Adequacy Purposes Amount | 35,532 | 26,875 | ||
Tier 1 Capital (to risk-weighted assets): For Capital Adequacy Purposes Amount | 47,376 | 35,834 | ||
Total Capital (to risk-weighted assets): For Capital Adequacy Purposes Amount | $ 63,168 | $ 47,779 | ||
Capital (to adjusted tangible assets): For Capital Adequacy Purposes Ratio | 4.00% | 4.00% | ||
Common equity Tier 1(to risk-weighted assets): For Capital Adequacy Purposes Ratio | 4.50% | 4.50% | 7.00% | 4.00% |
Tier 1 Capital (to risk-weighted assets): For Capital Adequacy Purposes Ratio | 6.00% | 6.00% | 8.50% | 6.00% |
Total Capital (to risk-weighted assets): For Capital Adequacy Purposes Ratio | 8.00% | 8.00% | ||
Capital (to adjusted tangible assets): To be Well Capitalized under Prompt Corrective Action Provisions Capital Amount | $ 48,725 | $ 39,417 | ||
Common equity Tier 1(to risk-weighted assets): To be Well Capitalized under Prompt Corrective Action Provisions Capital Amount | 51,324 | 38,820 | ||
Tier 1 Capital (to risk-weighted assets): To be Well Capitalized under Prompt Corrective Action Provisions Capital Amount | 63,168 | 47,779 | ||
Total Capital (to risk-weighted assets): To be Well Capitalized under Prompt Corrective Action Provisions Capital Amount | $ 78,960 | $ 59,723 | ||
Capital (to adjusted tangible assets): To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% | ||
Common equity Tier 1(to risk-weighted assets): To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% | ||
Tier 1 Capital (to risk-weighted assets): To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% | ||
Total Capital (to risk-weighted assets): To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Regulatory Matters (Details Nar
Regulatory Matters (Details Narrative) - Malvern Federal Savings Bank [Member] | Jun. 30, 2017 | Sep. 30, 2016 | Jan. 02, 2016 | Jan. 02, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common equity Tier 1 capital ratio | 4.50% | 4.50% | 7.00% | 4.00% |
Tier 1 capital ratio | 6.00% | 6.00% | 8.50% | 6.00% |
Tier 1 Capital coservation buffer | 2.50% | |||
Total capital ratio | 15.80% | 15.42% | 10.50% | |
Capital conservation buffer percentage of risk-weighted assets | 0.625% |
Derivatives and Hedging Activ59
Derivatives and Hedging Activities (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Sep. 30, 2016 | |
Other Assets [Member] | Interest Rate Swap Due On February 1, 2021 [Member] | ||
Notional Amount | $ 20,000 | |
Fair Value | $ 350 | |
Effective Date | Feb. 5, 2016 | |
Other Liabilities [Member] | Interest Rate Swap Due On August 3, 2020 [Member] | ||
Notional Amount | $ 15,000 | $ 15,000 |
Fair Value | $ 23 | $ 394 |
Effective Date | Aug. 3, 2015 | Aug. 3, 2015 |
Other Liabilities [Member] | Interest Rate Swap Due On February 1, 2021 [Member] | ||
Notional Amount | $ 20,000 | |
Fair Value | $ 148 | |
Effective Date | Feb. 5, 2016 |
Derivatives and Hedging Activ60
Derivatives and Hedging Activities (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest Rate Swap Due On August 3, 2020 [Member] | ||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $ (70) | $ (139) | $ 280 | $ (383) |
Amount of Gain (Loss) Reclassified from OCI to Interest Expense | (25) | (44) | (91) | (148) |
Amount of Gain (Loss) Recognized in Other Non-Interest Income (Ineffective Portion) | ||||
Interest Rate Swap Due On February 1, 2021 [Member] | ||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | (113) | (215) | 451 | (381) |
Amount of Gain (Loss) Reclassified from OCI to Interest Expense | (8) | (34) | (47) | (55) |
Amount of Gain (Loss) Recognized in Other Non-Interest Income (Ineffective Portion) |
Derivatives and Hedging Activ61
Derivatives and Hedging Activities (Details Narrative) - Interest Rate Swap Due On August 3, 2020 [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Sep. 30, 2016 | |
Increased in interest expense | $ 27 | |
Derivatives net liability position | $ 586 | |
Derivatives minimum collateral posting thresholds | 0 | $ 800 |
Derivatives net asset position | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | |
Assets: | |||
Investment securities available for sale, at fair value | [1] | $ 16,811 | $ 66,387 |
State And Municipal Obligations [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 9,265 | 25,307 | |
Single Issuer Trust Preferred Security [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 939 | 878 | |
Corporate Debt Securities [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 6,357 | 40,202 | |
Mutual Fund [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 250 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 250 | ||
Derivative instruments | |||
Liabilities: | |||
Derivative instruments | |||
Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 16,561 | 66,387 | |
Derivative instruments | 350 | ||
Liabilities: | |||
Derivative instruments | 23 | 542 | |
Fair Value, Inputs, Level 3 [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | |||
Derivative instruments | |||
Liabilities: | |||
Derivative instruments | |||
Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 16,811 | 66,387 | |
Derivative instruments | 350 | ||
Liabilities: | |||
Derivative instruments | 23 | 542 | |
Fair Value, Measurements, Recurring [Member] | State And Municipal Obligations [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 9,265 | 25,307 | |
Fair Value, Measurements, Recurring [Member] | Single Issuer Trust Preferred Security [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 939 | 878 | |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 6,357 | 40,202 | |
Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 250 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 250 | 0 | |
Derivative instruments | |||
Liabilities: | |||
Derivative instruments | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | State And Municipal Obligations [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Single Issuer Trust Preferred Security [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 250 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 16,561 | 66,387 | |
Derivative instruments | 350 | ||
Liabilities: | |||
Derivative instruments | 23 | 542 | |
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 | 9,265 | 25,307 | |
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 | 939 | 878 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | 6,357 | 40,202 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mutual Fund [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | |||
Derivative instruments | |||
Liabilities: | |||
Derivative instruments | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | State And Municipal Obligations [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Single Issuer Trust Preferred Security [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mutual Fund [Member] | |||
Assets: | |||
Investment securities available for sale, at fair value | |||
[1] | Restated |
Fair Value Measurements (Deta63
Fair Value Measurements (Details 1) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value, nonrecurring basis | $ 176 | $ 8 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value, nonrecurring basis | ||||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value, nonrecurring basis | ||||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value, nonrecurring basis | 176 | 8 | ||
Impaired Loans Net [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value, nonrecurring basis | 176 | [1] | 8 | [2] |
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 | ||||
Impaired Loans Net [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets, fair value, nonrecurring basis | ||||
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 | $ 176 | [1] | $ 8 | [2] |
[1] | At June 30,2017,consisted of four loans with an aggregate balance of $358,000 and with $182,000 in specific loan loss allowance. | |||
[2] | At September 30, 2016, consisted of one loan with an aggregate balance of $31,000 and with $23,000 in specific loan loss allowance. |
Fair Value Measurements (Deta64
Fair Value Measurements (Details 2) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Sep. 30, 2016 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value | $ 176 | $ 8 | |||
Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value | 176 | 8 | |||
Impaired Loans Net [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value | 176 | [1] | 8 | [2] | |
Impaired Loans Net [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value | $ 176 | [1] | $ 8 | [2] | |
Valuation Technique | [3] | Appraisal of collateral | [1] | Appraisal of collateral | [2] |
Unobservable Input | [4] | Collateral discounts | [1] | Collateral discounts | [2] |
Fair Value Inputs, Discount Rate | 0.00% | [1] | 0.00% | [2] | |
Impaired Loans Net [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value Inputs, Discount Rate | 0.00% | [1] | 0.00% | [2] | |
[1] | At June 30,2017,consisted of four loans with an aggregate balance of $358,000 and with $182,000 in specific loan loss allowance. | ||||
[2] | At September 30, 2016, consisted of one loan with an aggregate balance of $31,000 and with $23,000 in specific loan loss allowance. | ||||
[3] | Fair value is generally determined through independent appraisals of the underlying collateral primarily using comparable sales. | ||||
[4] | Appraisals may be adjusted by management for qualitative factors such as time, changes in economic conditions and estimated liquidation expense. |
Fair Value Measurements (Deta65
Fair Value Measurements (Details 3) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | |
Financial assets: | |||
Investment securities available-for-sale | [1] | $ 16,811 | $ 66,387 |
Investment securities held-to-maturity | 35,625 | 40,817 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 113,427 | 96,762 | |
Investment securities available-for-sale | 250 | ||
Investment securities held-to-maturity | |||
Loans receivable, net (including impaired loans) | |||
Accrued interest receivable | |||
Restricted stock | |||
Mortgage servicing rights (included in Other Assets) | |||
Derivatives (included in Other Assets) | |||
Financial liabilities: | |||
Savings accounts | |||
Checking and NOW accounts | |||
Money market accounts | |||
Certificates of deposit | |||
FHLB advances | |||
Subordinated debt | |||
Derivatives (included in Other Liabilities) | |||
Accrued interest payable | |||
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets: | |||
Cash and cash equivalents | |||
Investment securities available-for-sale | 16,561 | 66,387 | |
Investment securities held-to-maturity | 35,625 | 40,817 | |
Loans receivable, net (including impaired loans) | |||
Accrued interest receivable | 2,837 | 2,558 | |
Restricted stock | 5,458 | 5,424 | |
Mortgage servicing rights (included in Other Assets) | 279 | 308 | |
Derivatives (included in Other Assets) | 350 | ||
Financial liabilities: | |||
Savings accounts | 43,709 | 44,714 | |
Checking and NOW accounts | 155,536 | 129,588 | |
Money market accounts | 274,018 | 177,486 | |
Certificates of deposit | 288,367 | 252,232 | |
FHLB advances | 118,694 | 119,946 | |
Subordinated debt | 24,263 | ||
Derivatives (included in Other Liabilities) | 23 | 542 | |
Accrued interest payable | 1,060 | 427 | |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets: | |||
Cash and cash equivalents | |||
Investment securities available-for-sale | |||
Investment securities held-to-maturity | |||
Loans receivable, net (including impaired loans) | 801,893 | 589,844 | |
Accrued interest receivable | |||
Restricted stock | |||
Mortgage servicing rights (included in Other Assets) | |||
Derivatives (included in Other Assets) | |||
Financial liabilities: | |||
Savings accounts | |||
Checking and NOW accounts | |||
Money market accounts | |||
Certificates of deposit | |||
FHLB advances | |||
Subordinated debt | |||
Derivatives (included in Other Liabilities) | |||
Accrued interest payable | |||
Carrying Amount [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 113,427 | 96,762 | |
Investment securities available-for-sale | 16,811 | 66,387 | |
Investment securities held-to-maturity | 36,027 | 40,551 | |
Loans receivable, net (including impaired loans) | 800,337 | 574,160 | |
Accrued interest receivable | 2,837 | 2,558 | |
Restricted stock | 5,458 | 5,424 | |
Mortgage servicing rights (included in Other Assets) | 282 | 328 | |
Derivatives (included in Other Assets) | 350 | ||
Financial liabilities: | |||
Savings accounts | 43,709 | 44,714 | |
Checking and NOW accounts | 155,536 | 129,588 | |
Money market accounts | 274,018 | 177,486 | |
Certificates of deposit | 286,416 | 250,258 | |
FHLB advances | 118,000 | 118,000 | |
Subordinated debt | 24,263 | ||
Derivatives (included in Other Liabilities) | 23 | 542 | |
Accrued interest payable | 1,060 | 427 | |
Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 113,427 | 96,762 | |
Investment securities available-for-sale | 16,811 | 66,387 | |
Investment securities held-to-maturity | 35,625 | 40,817 | |
Loans receivable, net (including impaired loans) | 801,893 | 589,844 | |
Accrued interest receivable | 2,837 | 2,558 | |
Restricted stock | 5,458 | 5,424 | |
Mortgage servicing rights (included in Other Assets) | 279 | 308 | |
Derivatives (included in Other Assets) | 350 | ||
Financial liabilities: | |||
Savings accounts | 43,709 | 44,714 | |
Checking and NOW accounts | 155,536 | 129,588 | |
Money market accounts | 274,018 | 177,486 | |
Certificates of deposit | 288,367 | 252,232 | |
FHLB advances | 118,694 | 119,946 | |
Subordinated debt | 24,263 | ||
Derivatives (included in Other Liabilities) | 23 | 542 | |
Accrued interest payable | $ 1,060 | $ 427 | |
[1] | Restated |
Fair Value Measurements (Deta66
Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | |
Impaired Loans with aggregate balance | $ 358 | $ 31 | |
Impaired Loans with specific loan loss allowance | 182 | 23 | |
Investment securities available for sale, at fair value | [1] | 16,811 | 66,387 |
Fair Value, Inputs, Level 1 [Member] | |||
Investment securities available for sale, at fair value | 250 | ||
Fair Value, Measurements, Recurring [Member] | |||
Investment securities available for sale, at fair value | 16,811 | 66,387 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Investment securities available for sale, at fair value | $ 250 | $ 0 | |
[1] | Restated |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Income Tax Disclosure [Abstract] | ||||||
Income tax expense | $ 863 | [1] | $ 1,940 | [1] | ||
[1] | Restated |
Comprehensive Income (Loss) (De
Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | ||
Net unrealized holding (losses) gains on available-for-sale securities | $ (277) | $ 447 |
Tax effect | 94 | (152) |
Net of tax amount | (183) | 295 |
Fair value adjustments on derivatives | 327 | (542) |
Tax effect | (111) | 184 |
Net of tax amount | 216 | (358) |
Total accumulated other comprehensive income (loss) | $ 33 | $ (63) |
Comprehensive Income (Loss) (69
Comprehensive Income (Loss) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||||
Equity [Abstract] | ||||||||
Net unrealized holding gains (losses) on available-for-sale securities | $ 446 | [1] | $ 972 | $ (299) | [1] | $ 2,111 | ||
Net realized gains on securities available-for-sale | [2] | (374) | [1] | (229) | (432) | [1] | (421) | |
Accretion of unrealized holding losses on securities available-for-sale transferred to held-to-maturity | [3] | 2 | [1] | 3 | 7 | [1] | 7 | |
Fair value adjustments on derivatives | (151) | [1] | (278) | 868 | [1] | (527) | ||
Other comprehensive (loss) income before taxes | (77) | 468 | 144 | 1,170 | ||||
Tax effect | 25 | (159) | (48) | (292) | ||||
Total comprehensive (loss) income | $ (52) | [1] | $ 309 | $ 96 | [1] | $ 878 | [1] | |
[1] | Restated | |||||||
[2] | Amounts are included in gain on sale of investments, net on the Consolidated Statements of Operations in total other income. | |||||||
[3] | Amounts are included in interest and dividends on investment securities on the Consolidated Statements of Operations. |
Equity Based Incentive Compen70
Equity Based Incentive Compensation Plan (Details) - Malvern Bancorp, Inc. 2014 Long Term Incentive Compensation Plan (2014 Plan) [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Granted | 11,000 | |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of year | 5,000 | |
Granted | 7,000 | 5,000 |
Exercised | ||
Forfeited/cancelled/expired | (1,000) | |
Outstanding, end of year | 11,000 | |
Vested and exercisable, end of the period | 800 | |
Vested and unvested exercisable, end of the period | 800 | |
Vested and expected to vest, end of year | 11,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding, beginning of year | $ 16.02 | |
Granted | 21 | |
Exercised | ||
Forfeited/cancelled/expired | 16.02 | |
Outstanding, end of year | 19.19 | |
Vested and exercisable, end of the period | 16.02 | |
Vested and unvested exercisable, end of the period | 16.02 | |
Vested and expected to vest, end of year | $ 19.19 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Remaining Contractual Life [Roll Forward] | ||
Outstanding, end of year | 9 years 4 months 17 days | |
Vested and exercisable, end of the period | 8 years 9 months | |
Vested and unvested exercisable, end of the period | 8 years 9 months | |
Vested and expected to vest, end of year | 9 years 4 months 17 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Aggregate Intrinsic Value [Roll Forward] | ||
Outstanding, beginning of year | $ 1,980 | |
Forfeited/cancelled/expired | 4,780 | |
Outstanding, end of year | 52,370 | |
Vested and exercisable, end of the period | 6,344 | |
Vested and unvested exercisable, end of the period | 6,344 | |
Vested and expected to vest, end of year | $ 52,370 |
Equity Based Incentive Compen71
Equity Based Incentive Compensation Plan (Details 1) - Malvern Bancorp, Inc. 2014 Long Term Incentive Compensation Plan (2014 Plan) [Member] - Restricted Stock [Member] | 9 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested at beginning of year | shares | 1,930 |
Granted | shares | 12,522 |
Vested | shares | (337) |
Forfeited/cancelled/expired | shares | (241) |
Nonvested at end of year | shares | 13,874 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Nonvested at beginning of year | $ / shares | $ 17.40 |
Granted | $ / shares | 20.79 |
Vested | $ / shares | 21.15 |
Forfeited/cancelled/expired | $ / shares | 17.40 |
Nonvested at end of year | $ / shares | $ 20.36 |
Equity Based Incentive Compen72
Equity Based Incentive Compensation Plan (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Share-based compensation | $ 94 | [1] | ||
Malvern Bancorp, Inc. 2014 Long Term Incentive Compensation Plan (2014 Plan) [Member] | ||||
Maximum number of shares available for grants | 400,000 | 400,000 | ||
Number of remaining shares available for future grants | 374,789 | 374,789 | ||
Description of vesting right | Restricted stock and option awards granted vest in 20% increments beginning on the one year anniversary of the grant date. | |||
Compensation cost not yet recognized | $ 62 | $ 62 | ||
Weighted average period | 9 years 4 months 17 days | |||
Granted shares | 11,000 | |||
Malvern Bancorp, Inc. 2014 Long Term Incentive Compensation Plan (2014 Plan) [Member] | Restricted Stock [Member] | ||||
Share-based compensation | 87 | $ 88 | ||
Compensation cost not yet recognized | 202 | $ 202 | ||
Weighted average period | 9 years 6 months 7 days | |||
Granted shares | 12,522 | 2,200 | ||
Malvern Bancorp, Inc. 2014 Long Term Incentive Compensation Plan (2014 Plan) [Member] | Stock Option [Member] | ||||
Share-based compensation | $ 3 | $ 5 | ||
Granted shares | 7,000 | 5,000 | ||
[1] | Restated |
Subordinated Debt (Details Narr
Subordinated Debt (Details Narrative) - USD ($) $ in Thousands | Feb. 07, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | ||||
Subordinated debt | [1] | $ 24,263 | ||
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% 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 | $ 24,300 | |||
Description for redemption of notes | Redeemable, in whole or in part, on or after February 15, 2022, and at any time upon the occurrences of certain events. | 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% of the principal amount of the Notes plus any accrued and unpaid interest through, but excluding, the redemption date. | ||
Debt issuance costs | $ 737 | |||
[1] | Restated |