Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 03, 2019 | Mar. 29, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PRUDENTIAL BANCORP, INC. | ||
Entity Central Index Key | 0001578776 | ||
Trading Symbol | pbip | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock Shares Outstanding | 8,889,447 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 148 | ||
Entity Shell Company | false | ||
Entity Voluntary Filers | No |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
ASSETS | ||
Cash and amounts due from depository institutions | $ 2,395 | $ 2,457 |
Interest-bearing deposits | 45,573 | 45,714 |
Total cash and cash equivalents | 47,968 | 48,171 |
Certificates of deposit | 2,351 | 1,604 |
Investment and mortgage-backed securities available for sale (amortized cost-September 30, 2019, $502,571; September 30, 2018, $316,719) | 512,822 | 306,187 |
Investment and mortgage-backed securities held to maturity (fair value-September 30, 2019, $69,507; September 30, 2018, $55,927) | 68,635 | 59,852 |
Equity securities (amortized cost-September 30, 2019, $6) | 95 | |
Loans receivable-net of allowance for loan losses (September 30, 2019, $5,393; September 30, 2018, $5,167) | 585,456 | 602,932 |
Accrued interest receivable | 4,549 | 3,825 |
Real estate owned | 348 | 1,026 |
Restricted bank stock-at cost | 16,406 | 7,585 |
Office properties and equipment-net | 7,206 | 7,439 |
Bank owned life insurance (BOLI) | 31,841 | 28,691 |
Deferred income taxes, net | 2,358 | 4,655 |
Goodwill | 6,102 | 6,102 |
Core deposit intangible | 448 | 571 |
Prepaid expenses and other assets | 2,849 | 2,530 |
TOTAL ASSETS | 1,289,434 | 1,081,170 |
Deposits: | ||
Non-interest-bearing | 16,949 | 13,677 |
Interest-bearing | 728,495 | 770,581 |
Total deposits | 745,444 | 784,258 |
Advances from Federal Home Loan Bank -Short Term | 90,000 | 10,000 |
Advances from Federal Home Loan Bank - Long Term | 286,904 | 144,683 |
Accrued interest payable | 4,328 | 3,232 |
Advances from borrowers for taxes and insurance | 2,332 | 2,083 |
Accounts payable and accrued expenses | 20,815 | 8,505 |
Total liabilities | 1,149,823 | 952,761 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued | ||
Common stock, $.01 par value, 40,000,000 shares authorized; 10,819,006 issued and 8,889,447 outstanding at September 30, 2019; 10,819,006 issued and 8,987,356 outstanding at September 30, 2018 | 108 | 108 |
Additional paid-in capital | 118,384 | 118,345 |
Treasury stock | (29,698) | (27,744) |
Retained earnings | 49,625 | 45,854 |
Accumulated other comprehensive income (loss) | 1,192 | (8,154) |
Total stockholders' equity | 139,611 | 128,409 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,289,434 | $ 1,081,170 |
CONSOLIDATED STATEMENT OF FIN_2
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | ||
Investment and mortgage-backed securities available for sale, amortized cost (in dollars) | $ 502,571 | $ 316,719 |
Investment and mortgage-backed securities held to maturity, fair value (in dollars) | 69,507 | 55,927 |
Equity securities, amortized cost (in dollars) | 6 | |
Allowance for loan losses on loans receivable (in dollars) | $ 5,393 | $ 5,167 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 10,819,006 | 10,819,006 |
Common stock, shares outstanding | 8,889,447 | 8,987,356 |
Number of treasury share purchased | 1,929,559 | 1,831,650 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
INTEREST INCOME: | |||
Interest and fees on loans | $ 26,737,000 | $ 25,367,000 | $ 20,107,000 |
Interest on mortgage-backed securities | 9,561,000 | 4,077,000 | 2,947,000 |
Interest and dividends on investments | 6,782,000 | 5,015,000 | 3,180,000 |
Interest on interest-bearing deposits | 960,000 | 392,000 | 109,000 |
Total interest income | 44,040,000 | 34,851,000 | 26,343,000 |
INTEREST EXPENSE: | |||
Interest on deposits | 13,160,000 | 7,386,000 | 3,930,000 |
Interest on advances from FHLB - short term | 790,000 | 347,000 | 184,000 |
Interest on advances from FHLB - long term | 5,339,000 | 2,404,000 | 1,152,000 |
Total interest expense | 19,289,000 | 10,137,000 | 5,266,000 |
NET INTEREST INCOME | 24,751,000 | 24,714,000 | 21,077,000 |
PROVISION FOR LOAN LOSSES | 100,000 | 810,000 | 2,990,000 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 24,651,000 | 23,904,000 | 18,087,000 |
NON-INTEREST INCOME: | |||
Fees and other service charges | 661,000 | 668,000 | 655,000 |
Gain (loss) on sale of mortgage-backed securities available for sale | 1,057,000 | (376,000) | 235,000 |
Gain on equity securities | 58,000 | ||
Gain on sale of loans | 9,000 | 52,000 | |
Swap income | 158,000 | 1,122,000 | |
Earnings from BOLI | 645,000 | 639,000 | 677,000 |
Other | 506,000 | 447,000 | 579,000 |
Total non-interest income | 3,094,000 | 2,500,000 | 2,198,000 |
NON-INTEREST EXPENSES: | |||
Salaries and employee benefits | 8,857,000 | 8,273,000 | 7,468,000 |
Data processing | 789,000 | 733,000 | 697,000 |
Professional services | 1,460,000 | 1,866,000 | 1,433,000 |
Office occupancy | 968,000 | 1,079,000 | 962,000 |
Depreciation | 619,000 | 625,000 | 553,000 |
Director compensation | 255,000 | 234,000 | 282,000 |
Federal Deposit Insurance Corporation premiums | 472,000 | 278,000 | 162,000 |
Real estate owned expense | 81,000 | 176,000 | (13,000) |
Advertising | 279,000 | 246,000 | 214,000 |
Merger related expenses | 2,486,000 | ||
Core deposit amortization | 123,000 | 138,000 | 112,000 |
Other | 2,162,000 | 1,991,000 | 2,210,000 |
Total non-interest expenses | 16,065,000 | 15,639,000 | 16,566,000 |
INCOME BEFORE INCOME TAXES | 11,680,000 | 10,765,000 | 3,719,000 |
INCOME TAXES: | |||
Current | 2,338,000 | 2,429,000 | 801,000 |
Deferred (benefit) expense | (188,000) | 140,000 | |
Total | 2,150,000 | 3,701,000 | 941,000 |
NET INCOME | $ 9,530,000 | $ 7,064,000 | $ 2,778,000 |
BASIC EARNINGS PER SHARE (in dollars per share) | $ 1.09 | $ 0.80 | $ 0.33 |
DILUTED EARNINGS PER SHARE (in dollars per share) | 1.07 | 0.78 | 0.32 |
DIVIDENDS PER SHARE (in dollars per share) | $ 0.65 | $ 0.70 | $ 0.12 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income | $ 9,530 | $ 7,064 | $ 2,778 |
Unrealized holding gain (loss) on available-for-sale securities | 21,871 | (9,077) | (2,830) |
Tax effect | (4,593) | 1,906 | 962 |
Reclassification adjustment for net securities (gains) losses realized in net income | (1,057) | 310 | (235) |
Tax effect | 222 | (65) | 80 |
Unrealized holding (loss) gain on interest rate swaps | (8,952) | 599 | 705 |
Tax effect | 1,880 | (126) | (240) |
Reclassification adjustment for gain on interest rate swap | (808) | ||
Tax effect | 170 | ||
Total other comprehensive income (loss) | 9,371 | (7,091) | (1,558) |
Comprehensive income (loss) | $ 18,901 | $ (27) | $ 1,220 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Unearned Esop Shares | Treasury Stock | Retained Earnings | Other Comprehensive Income (Loss) | Total |
BALANCE at Sep. 30, 2016 | $ 95 | $ 95,713 | $ (4,550) | $ (21,098) | $ 43,044 | $ 798 | $ 114,002 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,778 | 2,778 | |||||
Other comprehensive income (loss) | (1,558) | (1,558) | |||||
Dividends paid ($0.12, $0.70, $0.65 per share for September 30, 2017, September 30, 2018 and September 30, 2019, respectively) | (1,035) | (1,035) | |||||
Issuance of common stock | 13 | 21,801 | 21,814 | ||||
Purchase of Treasury Stock (43,735 shares, 223,520 shares and 207,543 shares for September 30, 2017, September 30, 2018 and September30,2019 respectively) | (1,083) | (1,083) | |||||
Terminate ESOP (303,115 shares) | 733 | 4,456 | (5,189) | ||||
Treasury Stock used for employee benefit plans (35,234 shares, 202,751 shares and 109,634 shares for September 30, 2017, September 30, 2018 and September 30, 2019 respectively) | (663) | 663 | |||||
Stock option expense | 531 | 531 | |||||
Restricted shares award expense | 578 | 578 | |||||
ESOP shares committed to be released (8,879 shares) | 58 | 94 | 152 | ||||
BALANCE at Sep. 30, 2017 | 108 | 118,751 | (26,707) | 44,787 | (760) | 136,179 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 7,064 | 7,064 | |||||
Other comprehensive income (loss) | (7,091) | (7,091) | |||||
Dividends paid ($0.12, $0.70, $0.65 per share for September 30, 2017, September 30, 2018 and September 30, 2019, respectively) | (6,300) | (6,300) | |||||
Purchase of Treasury Stock (43,735 shares, 223,520 shares and 207,543 shares for September 30, 2017, September 30, 2018 and September30,2019 respectively) | (4,037) | (4,037) | |||||
Treasury Stock used for employee benefit plans (35,234 shares, 202,751 shares and 109,634 shares for September 30, 2017, September 30, 2018 and September 30, 2019 respectively) | (1,511) | 3,000 | 1,489 | ||||
Stock option expense | 540 | 540 | |||||
Restricted shares award expense | 565 | 565 | |||||
Reclassification due to change in federal income tax rate | 303 | (303) | |||||
BALANCE at Sep. 30, 2018 | 108 | 118,345 | (27,744) | 45,854 | (8,154) | 128,409 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 0 | 0 | 0 | 0 | 9,530 | 0 | 9,530 |
Other comprehensive income (loss) | 9,371 | 9,371 | |||||
Dividends paid ($0.12, $0.70, $0.65 per share for September 30, 2017, September 30, 2018 and September 30, 2019, respectively) | (5,784) | (5,784) | |||||
Purchase of Treasury Stock (43,735 shares, 223,520 shares and 207,543 shares for September 30, 2017, September 30, 2018 and September30,2019 respectively) | (3,648) | (3,648) | |||||
Treasury Stock used for employee benefit plans (35,234 shares, 202,751 shares and 109,634 shares for September 30, 2017, September 30, 2018 and September 30, 2019 respectively) | (1,154) | 1,694 | 540 | ||||
Stock option expense | 573 | 573 | |||||
Restricted shares award expense | 620 | 620 | |||||
Reclassification due to change in federal income tax rate | 25 | (25) | |||||
BALANCE at Sep. 30, 2019 | $ 108 | $ 118,384 | $ 0 | $ (29,698) | $ 49,625 | $ 1,192 | $ 139,611 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||
Dividends paid (in dollars per share) | $ 0.65 | $ 0.70 | $ 0.12 |
Purchase of treasury stock | 207,543 | 223,520 | 43,735 |
Terminate ESOP plan shares | 303,115 | ||
Treasury stock used for employee benefit plan | 109,634 | 202,751 | 35,234 |
ESOP shares committed to be released | 8,879 |
CONSOLIDATED STATEMENTS OF CH_3
CONSOLIDATED STATEMENTS OF CHANGES OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES: | |||
Net income | $ 9,530,000 | $ 7,064,000 | $ 2,778,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 100,000 | 810,000 | 2,990,000 |
Depreciation | 619,000 | 625,000 | 553,000 |
Net amortization/accretion of premiums/discounts and other amortization | (2,407,000) | (495,000) | 461,000 |
Earnings on BOLI | (645,000) | (639,000) | (677,000) |
(Accretion) amortization of deferred loan fees and costs | (136,000) | (72,000) | (31,000) |
Compensation expense of ESOP | 152,000 | ||
(Gain) loss on sale of investment and mortgage-backed securities | (1,057,000) | 376,000 | (235,000) |
Equity securities gains | (58,000) | ||
Writedown of real estate owned | 75,000 | 175,000 | |
Loss (gain) on sale of real estate owned | 46,000 | (45,000) | (46,000) |
Gain on sale of loans | (9,000) | (52,000) | |
Proceeds from the sale of loans held for sale | 612,000 | 2,686,000 | |
Originations of loans held for sale | (603,000) | (2,634,000) | |
Share-based compensation expense | 1,193,000 | 1,105,000 | 1,109,000 |
Deferred income tax (benefit) expense | (188,000) | 140,000 | |
Changes in assets and liabilities which provided (used) cash: | |||
Accrued interest payable | 1,096,000 | 1,299,000 | 530,000 |
Other, net | 543,000 | (172,000) | (912,000) |
Accrued interest receivable | (724,000) | (1,000,000) | (897,000) |
Net cash provided by operating activities | 7,987,000 | 10,303,000 | 5,915,000 |
INVESTING ACTIVITIES: | |||
Purchase of investment and mortgage-backed securities held to maturity | (11,849,000) | (4,480,000) | (22,647,000) |
Purchase of investment and mortgage-backed securities available for sale | (280,303,000) | (158,854,000) | (82,195,000) |
Principal collected on loans | 118,404,000 | 90,589,000 | 150,561,000 |
Principal payments received on investment and mortgage-backed securities: | |||
Held-to-maturity | 3,002,000 | 1,254,000 | 1,255,000 |
Available-for-sale | 24,091,000 | 15,015,000 | 19,228,000 |
Loans originated or acquired | (100,371,000) | (123,608,000) | (218,611,000) |
Purchase of certificates of deposit | 498,000 | ||
Redemption of certificates of deposit | (747,000) | (249,000) | |
Purchase of FHLB stock | (13,966,000) | (6,780,000) | (140,000) |
Proceeds from redemption of FHLB stock | 5,145,000 | 5,197,000 | |
Proceeds from sale of investment and mortgage-backed securities | 75,639,000 | 11,052,000 | 20,863,000 |
Proceeds from sale of Polonia Bancorp, Inc.'s investment portfolio acquired | 67,154,000 | ||
Proceeds from sale of real estate owned | 557,000 | 407,000 | 438,000 |
Acquisition, net of cash | 3,966,000 | ||
Purchase of bank owned life insurance | (2,500,000) | (10,000,000) | |
Purchases of equipment | (386,000) | (260,000) | (308,000) |
Net cash used in investing activities | (183,284,000) | (170,468,000) | (70,187,000) |
FINANCING ACTIVITIES: | |||
Net increase (decrease) in demand deposits, NOW accounts, and savings accounts | 11,816,000 | (21,241,000) | (21,609,000) |
Net (decrease) increase in certificates of deposit | (50,501,000) | 169,821,000 | 96,147,000 |
Net (decrease) increase in FHLB short-term borrowings | 80,000,000 | (10,000,000) | (7,000,000) |
Proceeds from FHLB long-term borrowings | 175,997,000 | 93,300,000 | 17,249,000 |
Repayment of borrowing from FHLB | (33,575,000) | (42,475,000) | (3,393,000) |
Purchase treasury stock | (3,108,000) | (2,548,000) | (6,272,000) |
Cash dividends paid | (5,784,000) | (6,300,000) | (1,035,000) |
Release unallocated shares from ESOP | 4,456,000 | ||
Repayment of remaining principal balance of ESOP loan | 733,000 | ||
Increase (decrease) in advances from borrowers for taxes and insurance | 249,000 | (124,000) | 459,000 |
Net cash provided by financing activities | 175,094,000 | 180,433,000 | 79,735,000 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (203,000) | 20,268,000 | 15,463,000 |
CASH AND CASH EQUIVALENTS-Beginning of year | 48,171,000 | 27,903,000 | 12,440,000 |
CASH AND CASH EQUIVALENTS-End of year | 47,968,000 | 48,171,000 | 27,903,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Interest paid on deposits and advances from FHLB | 18,531,000 | 9,601,000 | 4,736,000 |
Income taxes paid | $ 2,409,000 | 2,700,000 | 1,080,000 |
SUPPLEMENTAL DISCLOSURES OF NONCASH ITEMS: | |||
Real estate acquired in settlement of loans | $ 1,373,000 | ||
Assets acquired: | |||
Investment securities | 67,154,000 | ||
Loans | 160,785,000 | ||
Premises | 6,702,000 | ||
Core deposit intangible | 822,000 | ||
Goodwill | 6,102,000 | ||
Bank owned life insurance | 4,316,000 | ||
Deferred tax assets | 3,492,000 | ||
FHLB stock | 3,399,000 | ||
Other assets | 2,273,000 | ||
Total assets | 255,045,000 | ||
Liabilities assumed: | |||
Deposits | 172,243,000 | ||
FHLB advances | 57,232,000 | ||
Other liabilities | 7,722,000 | ||
Total liabilities assumed | 237,197,000 | ||
Net non-cash assets acquired | 17,848,000 | ||
Cash acquired | $ 22,911,000 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2019 | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION Prudential Bancorp, Inc. (the “Company”) is a Pennsylvania corporation that was incorporated in June 2013 to be the successor corporation of Prudential Bancorp, Inc. of Pennsylvania (“Old Prudential Bancorp”), the former stock holding company for Prudential Bank (the “Bank”), a Pennsylvania-chartered, FDIC-insured savings bank with ten full service branches in the Philadelphia area. The Bank’s primary federal banking regulator is the Federal Deposit Insurance Corporation. The Bank is principally in the business of attracting deposits from its community through its branch offices and investing those deposits, together with funds from borrowings, primarily in loans and investments. The Bank’s sole subsidiary as of September 30, 2019 was PSB Delaware, Inc. (“PSB”), a Delaware-chartered corporation established to hold certain investments. As of September 30, 2019, PSB had assets of $167.7 million primarily consisting of investment and mortgage-backed securities. Most of the Company’s business activities are conducted within a few hours’ drive from Philadelphia and include eastern Pennsylvania, Delaware, New Jersey and southern New York. On January 1, 2017, the Company completed its acquisition of Polonia Bancorp, Inc. (“Polonia Bancorp”) and Polonia Bank, Polonia’s wholly owned subsidiary. Polonia Bancorp and Polonia Bank were merged with and into the Company and the Bank, respectively. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation – The accompanying consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The most significant estimates and assumptions in the consolidated financial statements are recorded in the allowance for loan losses, the fair value of financial instruments, other than temporary impairment of securities, goodwill and valuation of deferred tax assets. Actual results could differ from those estimates. Cash and Cash Equivalents — For purposes of reporting cash flows, cash and cash equivalents include cash and amounts due from depository institutions and interest-bearing deposits with original maturities of less than 90 days. Certificates of Deposit— The Bank may purchase certificates of deposit issued by FDIC-insured banks in amounts of up to $249,000 and with maturities of between one to five years. Investment Securities and Mortgage-Backed Securities — Management classifies and accounts for debt securities as follows: Held to Maturity —Debt securities that management has the positive intent and ability to hold until maturity are classified as held to maturity and are carried at their remaining unpaid principal balance, net of unamortized premiums or unaccreted discounts. Premiums are amortized and discounts are accreted using the interest method over the estimated remaining term of the underlying security. Available for Sale —Debt securities that will be held for indefinite periods of time, including securities that may be sold in response to changes in market interest or prepayment rates, needs for liquidity, and changes in the availability and the yield of alternative investments, are classified as available for sale. These assets are carried at fair value. Fair value is determined using public market prices, dealer quotes, and prices obtained from independent pricing services that may be derivable from observable and unobservable market inputs. Unrealized gains and losses are excluded from earnings and are reported net of tax as a separate component of stockholders’ equity until realized. Realized gains or losses on the sale of investment and mortgage-backed securities are reported in earnings as of the trade date and determined using the adjusted cost of the specific security sold. Premiums are amortized and discounts are accreted using the interest method over the estimated remaining term of the underlying security. Equity Securities - Equity securities are held at fair value. Holding gains and losses and dividends are recorded as components of non-interest income. Other-than-temporary impairment —Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. For all securities that are in an unrealized loss position for an extended period of time and for all securities whose fair value is significantly below amortized cost, management performs an evaluation of the specific events attributable to the market decline of the security. Management considers the length of time and extent to which the security’s fair value has been below cost as well as the general market conditions, industry characteristics, and the fundamental operating results of the issuer to determine if the decline is other-than-temporary. Management also considers as part of the evaluation its intention whether or not to sell the security until its market value has recovered to a level at least equal to the amortized cost. When management determines that a security’s unrealized loss is other-than-temporary, a realized loss is recognized in the period in which the decline in value is determined to be other-than-temporary. The write-down is measured based on the fair value of the security at the time the Company determines the decline in value is other-than-temporary. Loans Receivable — Lending consists of various loan types including single-family residential mortgage loans, construction and land development loans, non-residential or commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, and consumer loans and the loans are stated at their unpaid principal balances, net of unamortized net fees/costs. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balance adjusted for unearned income, the allowance for loan losses and any unamortized deferred fees or costs. Loan Origination and Commitment Fees — Management defers loan origination and commitment fees, net of certain direct loan origination costs. The balance is accreted into income as a yield adjustment over the life of the loan using the level-yield method. Interest on Loans — Management recognizes interest on loans on the accrual basis. Income recognition is discontinued when a loan becomes 90 days or more delinquent as to interest and/or principal. Any interest previously accrued is deducted from interest income. Such interest ultimately collected is credited to income when loans are no longer 90 days or more delinquent. Allowance for Loan Losses— The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio as of the Consolidated Statement of Financial Condition date. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance, and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses charged to operations. The provision for loan losses is based on management’s periodic evaluation of individual loans, economic factors, past loan loss experience, changes in the composition and volume of the portfolio, and other relevant factors, both qualitative and quantitative. The estimates used in determining the adequacy of the allowance for loan losses, including the amounts and timing of future cash flows expected on impaired loans, are particularly susceptible to changes in the near term. Impaired loans are loans for which it is not probable to collect all amounts due according to the contractual terms of the loan agreements. Management individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for impaired loans is determined by the difference between the present value of the expected cash flows related to the loans, using the original interest rate, and their recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. When foreclosure is probable, impairment is measured based on the fair value of the collateral. Mortgage loans and consumer loans are comprised of large groups of smaller balance homogeneous loans which are evaluated for impairment collectively. Loans that experience insignificant payment delays, which are defined as less than 90 days, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all of the circumstances surrounding the loan and the borrower including the length of the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. Real Estate Owned — Real estate acquired through, or in lieu of, loan foreclosure is recorded at fair value at the date of acquisition, less estimated selling costs, establishing a new basis. Costs related to the development and improvement of real estate owned properties are capitalized and those relating to holding the properties are charged to expense. After foreclosure, a valuation is periodically performed by management and a write-down is recorded, if necessary, by a charge to operations if the carrying value of a property exceeds its fair value less estimated costs to sell. Restricted Bank Stock – Restricted bank stock includes Federal Home Loan Bank (“FHLB”) and Atlantic Community Bankers Bank (“ACBB”) stock and is classified as a restricted equity security because ownership is restricted and there is no established market for its resale. FHLB and ACBB stock is carried at cost and is evaluated for impairment when certain conditions warrant further consideration. The Bank is a member of the Federal Home Loan Bank of Pittsburgh and as such, is required to maintain a minimum investment in stock of the Federal Home Loan Bank that varies with the level of advances outstanding with the Federal Home Loan Bank. The stock is bought from and sold to the Federal Home Loan Bank based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the Federal Home Loan Bank as compared to the capital stock amount and the length of time this situation has persisted; (b) commitments by the Federal Home Loan Bank to make payments required by law or regulation and the level of such payments in relation to the operating performance; (c) the impact of legislative and regulatory changes on the customer base of the Federal Home Loan Bank; and (d) the liquidity position of the Federal Home Loan Bank. The Federal Home Loan Bank of Pittsburgh continues to report net income, continues to declare quarterly cash dividends and had its Aaa bond rating affirmed by Moody’s and its AA+ rating affirmed by Standard and Poor’s during 2019 and remained unchanged as of September 30, 2019. With consideration given to these factors, management concluded that the stock was not impaired at September 30, 2019 or 2018. In 2018, the Bank purchased $90,000 of stock in ACBB to support a $12.5 million line of credit. The line has not been drawn on. Office Properties and Equipment — Land is carried at cost. Office properties and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the expected useful lives of the assets. The costs of maintenance and repairs are expensed as they are incurred, and renewals and betterments are capitalized and depreciated over their useful lives. The estimated useful life is generally 10-39 years for office properties and 1-7 years for furniture and equipment. Cash Surrender Value of Life Insurance— The Company funds the policy premiums for life insurance covering the lives of certain officers and directors of the Bank. The bank owned life insurance policies (“BOLI”) provide an attractive tax-exempt return to the Company and is being used by the Company to fund various employee benefit plans and arrangements. The BOLI is recorded at its cash surrender value. Dividend Payable – Upon declaration of a dividend, a payable is established with a corresponding reduction to retained earnings at the declaration date. There was no dividend payable as of September 30, 2019 or 2018. The Company paid $5.8 million, $6.3 million, and $1.0 million in cash dividends during the fiscal years ended September 30, 2019, 2018 and 2017, respectively. Goodwill – Goodwill represents the excess of cost over the identifiable net assets of businesses acquired. Goodwill is recognized as an asset and is to be reviewed for impairment annually as of March 31 and between annual tests when events and circumstances indicate that impairment may have occurred. The Company’s goodwill and intangible assets are related to the acquisition of Polonia Bancorp on January 1, 2017. Share-Based Compensation – The Company accounts for stock-based compensation issued to employees, directors, and where appropriate non-employees, in accordance with U.S. GAAP. Under fair value provisions, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the appropriate vesting period using the straight-line method. The amount of stock-based compensation recognized at any date must at least equal the portion of the grant date fair value of the award that is vested at that date and as a result it may be necessary to recognize the expense using a ratable method. Determining the fair value of stock-based awards at the date of grant requires judgment, including estimating the expected term of the stock options and the expected volatility of the Company’s stock. In addition, judgment is required in estimating the amount of stock-based awards that are expected to be forfeited. If actual results differ significantly from these estimates or different key assumptions were used, it could have a material effect on the Company’s Consolidated Financial Statements. See Note 13 of the Notes to Consolidated Financial Statements for additional information regarding stock-based compensation. Treasury Stock – Common stock held in treasury is accounted for using the cost method, which treats stock held in treasury as a reduction to total stockholders’ equity. During the year ended September 30, 2019, the Company repurchased 207,543 shares of common stock at an average price per share of $17.47. The shares may be purchased in the open market or in privately negotiated transactions from time to time depending upon market conditions and other factors over a one-year period or such longer period of time as may be necessary to complete such repurchases. Comprehensive Income —Management presents in the consolidated statements of comprehensive income those amounts arising from transactions and other events which currently are excluded from the statements of operations and are recorded directly to stockholders’ equity. For the fiscal years ended September 30, 2019, 2018 and 2017, the components of comprehensive income were net income, unrealized holding (loss) gain, net of income tax (benefit) expense, on available for sale securities and reclassifications related to realized gains on sale of securities recognized in earnings, net of tax, and unrealized holdings (loss)gain, net of tax, on the fair value of interest rate swaps. Reclassifications are made to avoid double counting in comprehensive income items which are displayed as part of net income for the period. Income Taxes— Management records deferred income taxes that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Management exercises significant judgment in the evaluation of the amount and timing of the recognition of the resulting tax assets and liabilities. The judgments and estimates required for the evaluation are updated based upon changes in business factors and the tax laws. If actual results differ from the assumptions and other considerations used in estimating the amount and timing of tax recognized, there can be no assurance that additional expense will not be required in future periods. In evaluating the Company’s ability to recover deferred tax assets, management considers all available positive and negative evidence, including past operating results and forecast of future taxable income. In determining future taxable income, management makes assumptions for the amount of taxable income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require management to make judgments about future taxable income and are consistent with the plans and estimates the Company uses to manage the business. Any reduction in estimated future taxable income may require management to record an additional valuation allowance against the deferred tax assets. An increase in the valuation allowance would result in additional income tax expense in the period and could have a significant impact on our future earnings. Transfers and Servicing of Financial Assets and Extinguishments of Liabilities — Management recognizes the financial and servicing assets it controls and the liabilities it has incurred, and will derecognize financial assets when control has been surrendered, and derecognize liabilities when extinguished. Servicing assets and other retained interests in the transferred assets are measured by allocating the previous carrying amount between the assets sold, if any, and retained interests, if any, based on their relative fair values at the date of transfer. Interest Rate Swap Agreement - For asset/liability management purposes, the Company uses interest rate swap agreements to hedge various exposures or to modify interest rate characteristics of assets and liabilities. Interest rate swaps are contracts in which a series of interest rate flow is exchanged over a prescribed period. The notional amount on which the interest payments are based is not exchanged. These swap agreements are derivative instruments and generally convert a portion of the Company’s variable-rate debt to a fixed rate (cash flow hedge) and convert a portion of its fixed-rate loans to a variable rate (fair value hedge). For the fair value hedges, changes in the fair value of the interest rate swap are expected to be “perfectly effective” in offsetting changes in the fair value of the hedged item, thus no portion of the change in market value is anticipated to be recognized in earnings. For cash flow hedges, the net settlement (upon close-out or termination) that offsets changes in the value of the hedged debt is deferred and amortized into net interest income over the life of the hedged debt. For fair value hedges, the net settlement (upon close-out or termination) that offsets changes in the value of the loans adjusts the basis of the loans and is deferred and amortized to loan interest income over the life of the loans. The portion, if any, of the net settlement amount that did not offset changes in the value of the hedged asset or liability is recognized immediately in non-interest income. Interest rate derivative financial instruments receive hedge accounting treatment only if they are designated as a hedge and are expected to be, and are, effective in substantially reducing interest rate risk arising from the assets and liabilities identified as exposing the Company to risk. Those derivative financial instruments that do not meet specified hedging criteria would be recorded at fair value, with changes in fair value recorded in income. If periodic assessment indicates derivatives no longer provide an effective hedge, the derivative contracts would be closed out and settled, or classified as a trading activity. Loans Acquired - Loans acquired including loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. Loans are evaluated individually to determine if there is evidence of deterioration of credit quality since origination. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining estimated life. Decreases in expected cash flows are recognized immediately as impairment. Any valuation allowances on these impaired loans reflect only losses incurred after acquisition. Loans acquired with evidence of deterioration of credit quality since origination were not material. For purchased loans acquired that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value. Loans are aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. Subsequent to the purchase date, the methods utilized to estimate the required allowance for credit losses for these loans is similar to originated loans; however, the Company records a provision for loan losses only when the required allowance exceeds any remaining credit discounts. The remaining differences between the purchase price and the unpaid principal balance at the date of acquisition are recorded in interest income over the life of the loans. Reclassification of Comparative Amounts - Certain items previously reported have been reclassified to conform to the current year’s reporting format. Such reclassifications did not affect consolidated net statement of operations or consolidated stockholders’ equity. Recently Adopted Accounting Pronouncements Effective October 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers – Topic 606, and all subsequent ASUs that modified ASC 606. The Company has elected to apply the standard utilizing the modified retrospective approach with a cumulative effect of adoption for the impact from uncompleted contracts at the date of adoption. The adoption of this guidance did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustments were recorded. Management determined that the primary sources of revenue emanating from interest and dividend income on loans and securities along with noninterest revenue resulting from investment security gains, loan servicing, gains on the sale of loans, commitment fees, fees from financial guarantees, certain credit cards fees, and income on bank-owned life insurance are not within the scope of ASC 606. As a result, no changes were made during the period related to these sources of revenue, which cumulatively comprise 98 percent of the total revenue of the Company. Services within the scope of ASC 606 include income from service charges on deposit accounts, other service income, ATM fees and gain on sale of other real estate owned, net. For these accounts, fees are related to specific customer transactions and are attributable to specific performance obligations of the Bank where the revenue is recognized at a defined point in time: completion of the requested service/transaction. Effective October 1, 2018, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The adoption of this Update did not have a significant impact on the Company’s financial statements. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018 and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact on the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a one percent increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be affected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . This Update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. The Company does not anticipate the impact the adoption of the standard will have a significant impact on the Company’s financial position and results of operations. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) , which simplified the accounting for nonemployee share-based payment transactions. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this Update improve the following areas of nonemployee share-based payment accounting: (a) the overall measurement objective, (b) the measurement date, (c) awards with performance conditions, (d) classification reassessment of certain equity-classified awards, (e) calculated value (nonpublic entities only), and (f) intrinsic value (nonpublic entities only). The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company does not anticipate the adoption of the standard will have a significant impact on the Company’s financial position or results of operations. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements . The Update removes the requirement to disclose the amount of and reasons for transfers between Level I and Level II of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level III fair value |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Sep. 30, 2019 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 3. EARNINGS PER SHARE Basic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted earnings per share is computed based on the weighted average number of common shares outstanding and common share equivalents (“CSEs”) that would arise from the exercise of dilutive securities. The calculated basic and diluted earnings per share are as follows: Year Ended September 30, 2019 2018 2017 (Dollars in Thousands Except Per Share Data) Basic Diluted Basic Diluted Basic Diluted Net income $ 9,530 $ 9,530 $ 7,064 $ 7,064 $ 2,778 $ 2,778 Weighted average common shares outstanding 8,777,794 8,777,794 8,855,938 8,855,938 8,316,638 8,316,638 Effect of CSEs — 158,083 — 204,175 — 357,871 Adjusted weighted average common shares used in earnings per share computation 8,777,794 8,935,877 8,855,938 9,060,113 8,316,638 8,674,509 Earnings per share $ 1.09 $ 1.07 $ 0.80 $ 0.78 $ 0.33 $ 0.32 As of September 30, 2019, 2018, and 2017, there were 550,833, 666,526 and 555,185 shares of common stock, respectively, subject to options with an exercise price less than the then current market value and which were included in the computation of diluted earnings per share. At September 30, 2019, 2018 and 2017, there were 242,201, 202,500 and 367,379 shares, respectively, that had exercise prices greater than the current market value and are considered anti-dilutive. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Sep. 30, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (Loss) | 4. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in accumulated other comprehensive (loss) income by component net of tax: Year Ended September 30, 2019 2019 2019 2018 2018 2018 (Dollars in Thousands) Total Total accumulated accumulated Unrealized gain Unrealized gain (loss) other Unrealized gain Unrealized gain (loss) other (loss) on AFS on interest rate swaps comprehensive (loss) on AFS on interest rate comprehensive securities (a) (a) income (loss) securities (a) swaps (a) loss Beginning Balance $ (8,320) $ 166 $ (8,154) $ (1,091) $ 331 $ (760) Other comprehensive (loss) income before reclassification 17,278 (7,072) 10,206 (7,171) 473 (6,698) Amount reclassified from accumulated other comprehensive income (835) — (835) 245 (638) (393) Total other comprehensive income (loss) 16,443 (7,072) 9,371 (6,926) (165) (7,091) Reclassification due to adoption of ASU 2016-01 (25) — (25) (303) — (303) Ending Balance $ 8,098 $ (6,906) $ 1,192 $ (8,320) $ 166 $ (8,154) Year Ended September 30, 2017 2017 2017 (Dollars in Thousands) Total accumulated Unrealized gain Unrealized gain (loss) other (loss) on AFS on interest rate swaps comprehensive securities (a) (a) gain (loss) Beginning Balance $ 931 $ (133) $ 798 Other comprehensive (loss) income before reclassification (1,867) 464 (1,403) Amount reclassified from accumulated other comprehensive income (155) — (155) Total other comprehensive income (loss) (2,022) 464 (1,558) Ending Balance $ (1,091) $ 331 $ (760) (a) All amounts are net of tax. Amounts in parentheses indicate debits. The following table presents significant amounts reclassified out of each component of accumulated other comprehensive (loss) income for the years ended September 30, 2019 and 2018: Year Ended September 30, 2019 2019 2019 2018 2018 2018 (Dollars in Thousands) Securities Swaps Total Securities Swaps Total Unrealized gain (losses) $ 1,057 (1) $ — (2) $ 1,057 $ (310) (1) $ 808 (2) $ 498 Income taxes (222) (3) — (3) (222) 65 (3) (170) (3) (105) $ 835 $ — $ 835 $ (245) $ 638 $ 393 Year Ended September 30, 2017 2017 2017 (Dollars in Thousands) Securities Swaps Total Unrealized gain (losses) $ 235 (1) $ — (2) $ 235 Income taxes (80) (3) — (3) (80) |
INVESTMENT AND MORTGAGE-BACKED
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 12 Months Ended |
Sep. 30, 2019 | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 5. INVESTMENT AND MORTGAGE-BACKED SECURITIES The amortized cost and fair value of securities, with gross unrealized gains and losses, are as follows: September 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 24,960 $ 3 $ (98) $ 24,865 State and political subdivisions 47,909 484 (747) 47,646 Mortgage-backed securities - U.S. government agencies 362,342 8,836 (406) 370,772 Corporate debt securities 67,360 2,217 (38) 69,539 Total debt securities available for sale $ 502,571 $ 11,540 $ (1,289) $ 512,822 Securities Held to Maturity: U.S. government and agency obligations $ 43,349 $ 181 $ (188) $ 43,342 State and political subdivisions 20,474 645 — 21,119 Mortgage-backed securities - U.S. government agencies 4,812 238 (4) 5,046 Total securities held to maturity $ 68,635 $ 1,064 $ (192) $ 69,507 The amortized cost and fair value of equity securities: September 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Equity securities FHLMC preferred stock $ 6 $ 89 $ — $ 95 Total equity securities $ 6 $ 89 $ — $ 95 September 30, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 25,562 $ — $ (1,391) $ 24,171 State and political subdivisions 22,078 — (542) 21,536 Mortgage-backed securities - U.S. government agencies 193,451 77 (6,168) 187,360 Corporate debt securities 75,622 (2,539) 73,083 Total debt securities 316,713 77 (10,640) 306,150 FHLMC preferred stock 6 31 — 37 Total securities available for sale $ 316,719 $ 108 $ (10,640) $ 306,187 Securities Held to Maturity: U.S. government and agency obligations $ 33,500 $ 85 $ (3,311) $ 30,274 State and political subdivisions 20,574 2 (696) 19,880 Mortgage-backed securities - U.S. government agencies 5,778 148 (153) 5,773 Total securities held to maturity $ 59,852 $ 235 $ (4,160) $ 55,927 As of September 30, 2019, the Bank maintained securities with a fair value of $338.9 million in a safekeeping account at the FHLB of Pittsburgh used for collateral and convenience. The Bank is only required to hold $154.8 million as specific collateral for its borrowings; therefore the $184.1 million excess securities are not restricted and could be sold or transferred if needed. The following table shows the gross unrealized losses and related fair values of the Company’s investment securities, aggregated by investment category and the length of time that individual securities had been in a continuous loss position at September 30, 2019: Less than 12 months More than 12 months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ (3) $ 6,997 $ (95) $ 3,866 $ (98) $ 10,863 State and political subdivisions (4) 890 (743) 23,784 (747) 24,674 Mortgage-backed securities -U.S. government agencies (86) 50,057 (320) 37,056 (406) 87,113 Corporate debt securities (13) 1,989 (25) 3,014 (38) 5,003 Total securities available for sale $ (106) $ 59,933 $ (1,183) $ 67,720 $ (1,289) $ 127,653 Securities Held to Maturity: U.S. government and agency obligations $ (188) $ 14,811 $ — $ — $ (188) $ 14,811 Mortgage-backed securities -U.S.s government agencies (4) 794 — — (4) 794 State and political subdivisions — — — — — — Total securities held to maturity $ (192) $ 15,605 $ — $ — $ (192) $ 15,605 Total $ (298) $ 75,538 $ (1,183) $ 67,720 $ (1,481) $ 143,258 Management evaluates securities for other-than-temporary impairment (“OTTI”) at least once per quarter, and more frequently when economic or market conditions warrant such evaluation. The evaluation is based upon factors such as the creditworthiness of the issuers/guarantors, the underlying collateral, if applicable, and the continuing performance of the securities. Management also evaluates other facts and circumstances that may be indicative of an OTTI condition. This includes, but is not limited to, an evaluation of the type of security, the length of time and extent to which the fair value of the security has been less than cost, and the near-term prospects of the issuer. The Company assesses the credit loss by considering whether (1) the Company has the intent to sell the security, (2) it is more likely than not that it will be required to sell the security before recovery, or (3) it does not expect to recover the entire amortized cost basis of the security. The Company bifurcates the OTTI impact on impaired securities where impairment in value was deemed to be other than temporary between the component representing credit loss and the component representing loss related to other factors. The portion of the fair value decline attributable to credit loss must be recognized through a charge to earnings. The credit component is determined by comparing the present value of the cash flows expected to be collected, discounted at the rate in effect before recognizing any OTTI with the amortized cost basis of the debt security. The Company uses the cash flow expected to be realized from the security, which includes assumptions about interest rates, timing and severity of defaults, estimates of potential recoveries, the cash flow distribution from the bond indenture and other factors, then applies a discount rate equal to the effective yield of the security. The difference between the present value of the expected cash flows and the amortized book value is considered a credit loss. The fair value of the security is determined using the same expected cash flows; the discount rate is a rate the Company determines from the open market and other sources as appropriate for the security. The difference between the fair value and the security’s remaining amortized cost is recognized in other comprehensive income (loss). For the years ended September 30, 2019, 2018 and 2017, the Company determined that no OTTI had occurred within the investment and mortgage-backed securities portfolios. U.S. Government and agency obligations – The Company’s investments reflected in the tables above in U.S. Government sponsored enterprise obligations consist of debt obligations of the FHLB and Federal Farm Credit System (“FFCS”). These securities are typically rated AAA by one of the internationally recognized credit rating services. There were seven securities in a gross unrealized loss position having an aggregate depreciation of $286,000 or 1.1% from the Company’s amortized cost basis. The unrealized losses on these debt securities relate principally to the changes in market interest rates in the financial markets and are not as a result of projected shortfall of cash flows. In addition, the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities. As such, the Company anticipates it will recover the entire amortized cost basis of the securities. As a result, the Company did not consider these investments to be other-than-temporarily impaired at September 30, 2019. U.S. Government agency issued mortgage-backed securities — At September 30, 2019, the gross unrealized loss in U.S. government agency issued mortgage-backed securities in the category of experiencing a gross unrealized loss was $406,000 or 0.1% from the Company’s amortized cost basis and consisted of 44 securities. These securities represent asset-backed issues that are issued or guaranteed by a U.S. Government sponsored agency or carry the full faith and credit of the United States through a government agency and are currently rated AAA by at least one bond credit rating agency. The unrealized losses on these debt securities relate principally to the changes in market interest rates in the financial markets and are not as a result of projected shortfall of cash flows. The Company anticipates it will recover the entire amortized cost basis of the securities. As a result, the Company did not consider these investments to be other-than-temporarily impaired at September 30, 2019. Corporate debt securities — At September 30, 2019, the gross unrealized loss corporate debt securities in the category of experiencing a gross unrealized loss was $38,000 or 0.8% from the Company’s amortized cost basis and consisted of three securities. The unrealized losses on these debt securities relates principally to the changes in market interest rates in the financial markets and are not as a result of projected shortfall of cash flows. In addition, the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities. As such, the Company anticipates it will recover the entire amortized cost basis of the securities. As a result, the Company did not consider these investments to be other-than-temporarily impaired at September 30, 2019. State and political subdivision debt securities — At September 30, 2019, the gross unrealized loss state and political subdivision debt securities was $747,000 or 1.6% from the Company’s amortized cost basis and consisted of eight securities. The unrealized losses on these debt securities relate principally to the changes in market interest rates in the financial markets and are not as a result of projected shortfall of cash flows. In addition, the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities. As such, the Company anticipates it will recover the entire amortized cost basis of the securities. As a result, the Company did not consider these investments to be other-than-temporarily impaired at September 30, 2019. The following table shows the gross unrealized losses and related fair values of the investment securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at September 30, 2018: Less than 12 months More than 12 months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in Thousands) Securities Available for Sale: US government and agency obligations $ (89) $ 4,479 $ (1,302) $ 19,692 $ (1,391) $ 24,171 State and political subdivisions (542) 21,536 (542) 21,536 Mortgage-backed securities - US government agencies (1,821) 92,851 (4,347) 86,268 (6,168) 179,119 Corporate debt securities (1,719) 58,753 (820) 14,330 (2,539) 73,083 Total securities available for sale $ (4,171) $ 177,619 $ (6,469) $ 120,290 $ (10,640) $ 297,909 Securities Held to Maturity: U.S. government and agency obligations $ — $ — $ (3,311) $ 27,190 $ (3,311) $ 27,190 Mortgage-backed securities - US government agencies (106) 2,630 (47) 930 (153) 3,560 State and political subdivisions (234) 11,238 (462) 6,618 (696) 17,856 Total securities held to maturity $ (340) $ 13,868 $ (3,820) $ 34,738 $ (4,160) $ 48,606 Total $ (4,511) $ 191,487 $ (10,289) $ 155,028 $ (14,800) $ 346,515 The amortized cost and fair value of debt securities by contractual maturity are shown below. Expected maturities as of September 30, 2019 will differ from contractual maturities because of call provisions in the securities. Mortgage-backed securities were not included as the contractual maturity is generally irrelevant due to the borrowers’ right to prepay without pre-payment penalty which results in significant prepayments. September 30, 2019 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in Thousands) Due within one year $ — $ — $ — $ — Due after one through five years 2,284 2,306 17,547 17,748 Due after five through ten years 24,150 24,669 49,813 51,791 Due after ten years 37,389 37,486 72,869 72,511 Total $ 63,823 $ 64,461 $ 140,229 $ 142,050 During the fiscal years ended September 30, 2019, 2018 and 2017, the Company recorded realized net gains of $1.1 million, net losses of ($376,000) and net gains of $235,000, respectively, and gross proceeds from the from the sale of investment and mortgage-backed securities of $75.6 million, $11.1 million and $20.9 million, respectively. |
LOANS RECEIVABLE
LOANS RECEIVABLE | 12 Months Ended |
Sep. 30, 2019 | |
LOANS RECEIVABLE | |
LOANS RECEIVABLE | 6. LOANS RECEIVABLE Loans receivable consist of the following: September 30, 2019 2018 (Dollars in Thousands) One-to-four family residential $ 268,780 $ 324,865 Multi-family residential 30,582 34,355 Commercial real estate 128,521 119,511 Construction and land development 253,368 160,228 Loans to financial institutions 6,000 6,000 Commercial business 19,630 17,792 Leases 518 1,687 Consumer 834 953 Total loans 708,233 665,391 Undisbursed portion of loans-in-process (114,528) (54,474) Deferred loan fees (2,856) (2,818) Allowance for loan losses (5,393) (5,167) Net loans $ 585,456 $ 602,932 The Company originates loans to customers located primarily in its market area of eastern Pennsylvania, Delaware, New Jersey and southern New York. The ultimate repayment of these loans at September 30, 2019 is dependent, to a certain degree, on the state of the local economy and real estate market. The following table summarizes the loans individually and collectively evaluated for impairment by loan segment at September 30, 2019: One- to Loans to four- Multi-family Commercial Construction and financial Commercial family residential residential real estate land development institutions business Leases Consumer Total (Dollars in Thousands) Individually evaluated for impairment $ 4,827 $ — $ 1,965 $ 8,750 $ — $ — $ — $ — $ 15,542 Collectively evaluated for impairment 263,953 30,582 126,556 244,618 6,000 19,630 518 834 692,691 Total loans $ 268,780 $ 30,582 $ 128,521 $ 253,368 $ 6,000 $ 19,630 $ 518 $ 834 $ 708,233 The following table summarizes the loans individually and collectively evaluated for impairment by loan segment at September 30, 2018: One- to Loans to four- Multi-family Commercial Construction and financial Commercial family residential residential real estate land development institutions business Leases Consumer Total (Dollars in Thousands) Individually evaluated for impairment $ 5,081 $ 298 $ 1,919 $ 8,750 $ — $ — $ — $ — $ 16,048 Collectively evaluated for impairment 319,784 34,057 117,592 151,478 6,000 17,792 1,687 953 $ 649,343 Total loans $ 324,865 $ 34,355 $ 119,511 $ 160,228 $ 6,000 $ 17,792 $ 1,687 $ 953 $ 665,391 The loan portfolio is segmented at a level that allows management to monitor risk and performance. Management evaluates all loans classified as substandard or lower and loans delinquent 90 or more days for potential impairment. Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Once the determination is made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is generally measured by comparing the recorded investment in the loan to the fair value of the loan using one of the following three methods: (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. Management primarily utilizes the fair value of collateral method as a practically expedient alternative. The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2019: Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ — $ — $ 4,827 $ 4,827 $ 5,179 Multi-family residential — — — — — Commercial real estate — — 1,965 1,965 2,125 Construction and land development — — 8,750 8,750 11,131 Total $ — $ — $ 15,542 $ 15,542 $ 18,435 The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2018: Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ — $ — $ 5,081 $ 5,081 $ 5,432 Multi-family residential — — 298 298 298 Commercial real estate — — 1,919 1,919 2,057 Construction and land development — — 8,750 8,750 11,131 Total $ — $ — $ 16,048 $ 16,048 $ 18,918 The following tables present the average investment in impaired loans and related interest income recognized for the periods indicated: September 30, 2019 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 4,685 $ 77 $ 22 Multi-family residential 145 10 — Commercial real estate 2,139 36 4 Construction and land development 8,751 — — Total $ 15,720 $ 123 $ 26 September 30, 2018 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 5,741 $ 24 $ 59 Multi-family residential 306 21 — Commercial real estate 2,557 40 7 Construction and land development 8,743 — — Total $ 17,347 $ 85 $ 66 September 30, 2017 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 6,096 $ 89 $ 91 Multi-family residential 321 23 — Commercial real estate 2,459 49 12 Construction and land development 9,163 — — Consumer 5 — — Total $ 18,044 $ 161 $ 103 Federal banking regulations and our policies require that the Bank utilize an internal asset classification system as a means of reporting problem and potential problem assets. The Bank has incorporated an internal asset classification system, consistent with Federal banking regulations, as a part of the credit monitoring system. Management currently classifies problem and potential problem assets as “special mention,” “substandard,” “doubtful” or “loss” assets. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. Assets which do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are required to be designated “special mention.” The following tables present the classes of the loan portfolio in which a formal risk weighting system is utilized summarized by the aggregate “Pass” and the criticized category of “special mention”, and the classified categories of “substandard” and “doubtful” within the Bank’s risk rating system. The Bank had no loans classified as “loss” at the dates presented. September 30, 2019 Special Total Pass Mention Substandard Doubtful Loans (Dollars in Thousands) One-to-four residential $ 262,164 $ 1,789 $ 4,827 $ — $ 268,780 Multi-family residential 30,582 — — — 30,582 Commercial real estate 122,838 3,718 1,965 — 128,521 Construction and land development 244,618 — 8,750 — 253,368 Loans to financial institutions 6,000 — — — 6,000 Commercial business 19,630 — — — 19,630 Total $ 685,832 $ 5,507 $ 15,542 $ — $ 706,881 September 30, 2018 Special Total Pass Mention Substandard Doubtful Loans (Dollars in Thousands) One-to-four residential $ 317,033 $ 2,751 $ 5,081 $ — $ 324,865 Multi-family residential 34,057 — 298 — 34,355 Commercial real estate 115,670 1,922 1,919 — 119,511 Construction and land development 151,478 — 8,750 — 160,228 Loans to financial institutions 6,000 — — — 6,000 Commercial business 17,792 — — — 17,792 Total $ 642,030 $ 4,673 $ 16,048 $ — $ 662,751 The following tables present loans in which a formal risk rating system is not utilized, but loans are segregated between performing and non-performing based primarily on delinquency status: September 30, 2019 Non- Total Performing Performing Loans (Dollars in Thousands) One-to-four family residential $ 265,068 $ 3,712 $ 268,780 Leases 518 — 518 Consumer 834 — 834 Total $ 266,420 $ 3,712 $ 270,132 September 30, 2018 Non- Total Performing Performing Loans (Dollars in Thousands) One-to-four family residential $ 321,853 $ 3,012 $ 324,865 Leases 1,687 — 1,687 Consumer 953 — 953 Total $ 324,493 $ 3,012 $ 327,505 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans: September 30, 2019 90 Days+ 30‑89 Days 90 Days + Total Total Non- Past Due Current Past Due Past Due Past Due Loans Accrual and Accruing (Dollars in Thousands) One-to-four family residential $ 264,784 $ 750 $ 3,246 $ 3,996 $ 268,780 $ 3,712 $ — Multi-family residential 30,582 — — — 30,582 — — Commercial real estate 127,104 — 1,417 1,417 128,521 1,473 — Construction and land development 244,618 — 8,750 8,750 253,368 8,750 — Commercial business 19,630 — — — 19,630 — — Loans to financial institutions 6,000 — — — 6,000 — — Leases 518 — — — 518 — Consumer 739 95 — 95 834 — — Total Loans $ 693,975 $ 845 $ 13,413 $ 14,258 $ 708,233 $ 13,935 $ — September 30, 2018 90 Days+ 30‑89 Days 90 Days + Total Total Non- Past Due Current Past Due Past Due Past Due Loans Accrual and Accruing (Dollars in Thousands) One-to-four family residential $ 321,749 $ 1,037 $ 2,079 $ 3,116 $ 324,865 $ 3,012 $ — Multi-family residential 34,355 — — — $ 34,355 — — Commercial real estate 117,335 722 1,454 2,176 $ 119,511 1,627 — Construction and land development 151,478 — 8,750 8,750 $ 160,228 8,750 — Commercial business 17,792 — — — $ 17,792 — — Loans to financial institutions 6,000 — — — $ 6,000 — — Leases 1,687 — — — $ 1,687 — — Consumer 837 116 — 116 953 — — Total Loans $ 651,233 $ 1,875 $ 12,283 $ 14,158 $ 665,391 $ 13,389 $ — Interest income on nonaccrual loans would have increased by approximately $786,000, $744,000, and $636,000, during fiscal years ended September 30, 2019, 2018, and 2017, respectively, if these loans would have performed in accordance with their original terms. The allowance for loan losses is established through a provision for loan losses charged to expense. Management maintains the allowance at a level believed to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate at each reporting date. Management reviews the allowance for loan losses no less than quarterly in order to identify those inherent losses and to assess the overall collection probability for the loan portfolio in view of these inherent losses. For each primary type of loan, a loss factor is established reflecting an estimate of the known and inherent losses in such loan type using both a quantitative analysis as well as consideration of qualitative factors. The evaluation process includes, among other things, an analysis of delinquency trends, non-performing loan trends, the level of charge-offs and recoveries, prior loss experience, total loans outstanding, the volume of loan originations, the type, size and geographic concentration of our loans, the value of collateral securing the loans, the borrower’s ability to repay and repayment performance, the number of loans requiring heightened management oversight, local economic conditions and industry experience. Commercial real estate loans entail significant additional credit risks compared to one-to-four family residential mortgage loans, as they generally involve large loan balances concentrated with single borrowers or groups of related borrowers. In addition, the payment experience on loans secured by income-producing properties typically depends on the successful operation of the related real estate project and/or business operation of the borrower who is also the primary occupant, and thus may be subject to a greater extent to the effects of adverse conditions in the real estate market and in the economy in general. Commercial business loans typically involve a higher risk of default than residential loans of like duration since their repayment is generally dependent on the successful operation of the borrower’s business and the sufficiency of collateral, if any. Land acquisition, development and construction lending exposes us to greater credit risk than permanent mortgage financing. The repayment of land acquisition, development and construction loans depends upon the sale of the property to third parties or the availability of permanent financing upon completion of all improvements. These events may adversely affect the borrower and the value of the collateral property. The following tables summarize the primary segments of the allowance for loan losses, segmented into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2019, 2018 and 2017. Activity in the allowance is presented for the years ended September 30, 2019, 2018, and 2017: September 30, 2019 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2018 $ 1,325 $ 347 $ 1,154 $ 1,554 $ 187 $ 64 $ 18 $ 17 $ 501 $ 5,167 Charge-offs (7) — — — — — (31) — — (38) Recoveries 164 — — — — — — — — 164 Provision (480) (32) 103 480 19 (1) 18 (4) (3) 100 ALLL balance at September 30, 2019 $ 1,002 $ 315 $ 1,257 $ 2,034 $ 206 $ 63 $ 5 $ 13 $ 498 $ 5,393 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,002 315 1,257 2,034 206 63 5 13 498 5,393 September 30, 2018 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2017 $ 1,241 $ 205 $ 1,201 $ 1,358 $ 4 $ — $ 23 $ 24 $ 410 $ 4,466 Charge-offs (114) — — (12) — — — (11) — (137) Recoveries 28 — — — — — — — — 28 Provision 170 142 (47) 208 183 64 (5) 4 91 810 ALLL balance at September 30, 2018 $ 1,325 $ 347 $ 1,154 $ 1,554 $ 187 $ 64 $ 18 $ 17 $ 501 $ 5,167 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,325 347 1,154 1,554 187 64 18 17 501 5,167 September 30, 2017 One- to Multi- Construction four-family family Commercial and land Commercial residential residential real estate development business Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2016 $ 1,627 $ 137 $ 859 $ 316 $ 1 $ 21 $ 10 $ 298 $ 3,269 Charge-offs (140) — — (1,819) — — (16) — (1,975) Recoveries 182 — — — — — — — 182 Provision (428) 68 342 2,861 3 2 30 112 2,990 ALLL balance at September 30, 2017 $ 1,241 $ 205 $ 1,201 $ 1,358 $ 4 $ 23 $ 24 $ 410 $ 4,466 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,241 205 1,201 1,358 4 23 24 410 4,466 Loans acquired in the merger with Polonia Bancorp were recorded at fair value with no carryover of the related allowance for loan losses. Management measured loan fair values based on loan file reviews, appraised collateral values, expected cash flows, and historical loss factors of Polonia Bank. The fair value of the loans acquired was $160.8 million net of a $4.6 million discount of which $3.0 million of the discount remained as of September 30, 2019. The discount is accreted to interest income over the remaining contractual life of the loans. All loans that had a loan to value ratio of greater than 80% were determined to have sufficient collateral to recover the carrying amount. Thus, none of the loans acquired were considered to be purchased credit-impaired loans and any possible loss would be considered immaterial. Management established a provision for loan losses of $100,000, $810,000, and $3.0 million during the years ended September 30, 2019, 2018 and 2017, respectively. The provision for loan losses was deemed necessary for fiscal 2019 due to the increase in the aggregate level of commercial and construction and land development loans outstanding and the level of charge-offs incurred during fiscal 2019. The Company believes that the allowance for loan losses at September 30, 2019 was sufficient to cover all inherent and known losses associated with the loan portfolio at such date. At September 30, 2019, the Company’s non-performing assets totaled $14.3 million or 1.1% of total assets as compared to $14.4 million or 1.3% of total assets at September 30, 2018. Non-performing assets at September 30, 2019 included five construction loans aggregating $8.7 million, 22 one-to-four family residential loans aggregating $3.7 million and five commercial real estate loans aggregating $1.5 million. Non-performing assets at September 30, 2019 also included real estate owned consisting of one single-family residential property with an aggregate carrying value of $348,000. At September 30, 2019, the Company had nine loans aggregating $6.0 million that were classified as troubled debt restructurings (“TDRs”). Five of such loans aggregating $628,000 were performing in accordance with the restructured terms as of September 30, 2019 and were accruing interest. One TDR is on non-accrual and consists of a $432,000 loan secured by a single-family property. The three remaining TDRs totaling $4.9 million are also classified as non-accrual and are a part of a lending relationship totaling $10.7 million (after taking into account a $1.9 million write-down recognized during the quarter ending March 31, 2017 related to this borrowing relationship). The primary project of the borrower (the development of a 169‑unit townhouse project in Bristol Borough, Pennsylvania) is the subject of litigation between the Bank and the borrower. Subsequent to the commencement of the litigation, the borrower filed for bankruptcy under Chapter 11 (Reorganization) of the federal bankruptcy code in June 2017. The Bank has moved the underlying litigation noted above with the borrower and the Bank from state court to the federal bankruptcy court in which the bankruptcy proceeding is being heard. The state litigation is stayed pending the resolution of the bankruptcy proceedings. As of September 30, 2019, the Company had reviewed $15.5 million of loans for possible impairment of which $13.9 million was classified non-performing compared to $16.0 million reviewed for possible impairment and $13.4 million of which was classified non-performing as of September 30, 2018. Management will continue to monitor and modify the allowance for loan losses as conditions dictate. No assurances can be given that the level of the allowance for loan losses will cover all of the inherent losses on the loans or that future adjustments to the allowance for loan losses will not be necessary if economic and other conditions differ substantially from the economic and other conditions used by management to determine, in part the current level of the allowance for loan losses. There were no TDRs approved in 2019, 2018 or 2017. All of the existing TDRs involved changes in the interest rates on the loans; no debt was forgiven. At September 30, 2019, out of the nine then existing TDR loans, five were performing and the remaining four were classified as non-performing. At September 30, 2019, the Company had fifteen one-to-four family residential loans with a carrying amount of $2.3 million that are secured by residential real estate property for which foreclosure proceedings are in process according to local jurisdictions. |
OFFICE PROPERTIES AND EQUIPMENT
OFFICE PROPERTIES AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2019 | |
OFFICE PROPERTIES AND EQUIPMENT | |
OFFICE PROPERTIES AND EQUIPMENT | 7. OFFICE PROPERTIES AND EQUIPMENT Office properties and equipment are summarized by major classifications as follows: September 30, 2019 2018 (Dollars in Thousands) Land $ 1,437 $ 1,437 Buildings and improvements 7,449 7,449 Furniture and equipment 3,639 3,417 Total 12,525 12,303 Accumulated depreciation (5,319) (4,864) Total office properties and equipment, net of accumulated depreciation $ 7,206 $ 7,439 For the years ended September 30, 2019, 2018 and 2017, depreciation expense amounted to $619,000, $625,000 and $553,000, respectively. Lease expense was $304,000, $360,000 and $383,000 for the years ended September 30, 2019, 2018 and 2017, respectively. The Company has executed certain lease commitments and is, as a result, obligated to pay the following amounts: $250,000 for fiscal year 2020, $253,000 for fiscal year 2021, $256,000 for fiscal year 2022, $260,000 for fiscal year 2023, $263,000 for fiscal 2024 and $761,000 thereafter. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Sep. 30, 2019 | |
DEPOSITS | |
DEPOSITS | 8. DEPOSITS Deposits consist of the following major classifications: September 30, 2019 2018 Amount Percent Amount Percent (Dollars in Thousands) Non-interest-bearing checking accounts $ 16,949 2.2 % $ 13,620 1.7 % Interest-bearing checking accounts 58,647 7.9 % 49,209 6.3 % Money market deposit accounts 75,766 10.2 % 66,120 8.4 % Passbook, club and statement savings 80,899 10.9 % 91,489 11.7 % Certificates maturing in six months or less 294,343 39.5 % 301,184 38.4 % Certificates maturing in more than six months 218,840 29.3 % 262,636 33.5 % Total $ 745,444 100.0 % $ 784,258 100.0 % The amount of scheduled maturities of certificate accounts was as follows: September 30, 2019 (Dollars in Thousands) One year or less $ 405,670 One through two years 30,682 Two through three years 32,113 Three through four years 27,138 Four through five years 17,580 Total $ 513,183 Certificates of deposit of $250,000 or more at September 30, 2019 and 2018 totaled $182.8 million and $81.9 million, respectively. Included in Certificates of deposit are brokered deposits at September 30, 2019 and 2018 totaling $153.1 million and $32.7 million respectively. Interest expense on deposits was comprised of the following: Year Ended September 30, 2019 2018 2017 (Dollars in Thousands) Checking and money market deposit accounts $ 899 $ 247 $ 192 Passbook, club and statement savings accounts 124 66 55 Certificate accounts 12,137 7,073 3,683 Total $ 13,160 $ 7,386 $ 3,930 |
ADVANCES FROM FEDERAL HOME LOAN
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | 12 Months Ended |
Sep. 30, 2019 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | |
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | 9. ADVANCES FROM FEDERAL HOME LOAN BANK – SHORT TERM The years ended September 30, 2019 and 2018 outstanding balances and related information of short-term borrowings from the FHLB of Pittsburgh are summarized follows: (Dollar Amounts in Thousands) 2019 2018 Balance at year-end $ 90,000 $ 10,000 Average balance outstanding $ 31,158 $ 18,933 Maximum month-end balance $ 90,000 $ 30,200 Weight-average rate at year-end 2.32 % 2.31 % Weight-average rate during the year 2.53 % 1.81 % As of September 30, 2019, the $90.0 million borrowing consisted of seven 30 day FHLB advances associated with interest rate swap contracts. As of September 30, 2018, the $10.0 million consisted of one $10.0 million 30 day FHLB advances associated with an interest rate swap contract. Average balances outstanding during the year represent daily average balance and interest rates represent interest expense divided by the related average balance. The Company maintains borrowing facilities with the FHLB of pittsburgh, ACBB and Federal Reserve Bank of Philadelphia and the terms and interest rates are subject to change on the date of execution of borrowings. Available borrowings are based on collateral with the facility. The Company maintains unsecured borrowing facilities with ACBB and PNC for $12.5 million and $10.0 million, respectively. |
ADVANCES FROM FEDERAL HOME LO_2
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | 12 Months Ended |
Sep. 30, 2019 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | 10. ADVANCES FROM FEDERAL HOME LOAN BANK – LONG TERM Pursuant to collateral agreements with the FHLB of Pittsburgh, advances are secured by a blanket collateral of loans held by the Bank and qualifying fixed-income securities and FHLB stock. The long-term advances outstanding as of September 30, 2019 are as follows: Lomg-term FHLB advances: Maturity range Weighted average Stated interest rate range Description from to interest rate from to 2019 2018 (Dollars in Thousands) Fixed Rate - Amortizing 1‑Oct‑19 30‑Sep‑20 1.53 % 1.53 % 1.53 % $ 236 $ 1,639 Fixed Rate - Amortizing 1‑Oct‑20 30‑Sep‑21 2.70 % 1.94 % 2.83 % 14,354 23,288 Fixed Rate - Amortizing 1‑Oct‑21 30‑Sep‑22 2.81 % 1.99 % 3.05 % 8,729 11,848 Fixed Rate - Amortizing 1‑Oct‑22 30‑Sep‑23 2.88 % 1.94 % 3.11 % 6,931 8,550 Total 2.76 % $ 30,250 $ 45,325 Fixed Rate - Advances 1‑Oct‑18 30‑Sep‑19 1.75 % 1.40 % 2.66 % $ — $ 18,528 Fixed Rate - Advances 1‑Oct‑19 30‑Sep‑20 2.62 % 1.38 % 3.06 % 12,304 12,413 Fixed Rate - Advances 1‑Oct‑20 30‑Sep‑21 2.37 % 1.42 % 2.92 % 18,017 3,037 Fixed Rate - Advances 1‑Oct‑21 30‑Sep‑22 2.31 % 1.94 % 3.23 % 63,336 23,380 Fixed Rate - Advances 1‑Oct‑22 30‑Sep‑23 2.52 % 2.00 % 3.15 % 94,999 37,000 Fixed Rate - Advances 1‑Oct‑23 30‑Sep‑24 2.88 % 2.38 % 3.20 % 67,998 5,000 Total 2.56 % $ 256,654 $ 99,358 2.58 % Total $ 286,904 $ 144,683 Advances from the FHLB of Pittsburgh with coupon rates ranging from 1.38% to 3.23% are as follows. Weighted Average Maturity in Fiscal Amount Coupon Rate (Dollars in Thousands) 2020 $ 26,714 2.59 % 2021 28,078 2.44 % 2022 67,328 2.32 % 2023 96,785 2.51 % 2024 67,999 2.88 % $ 286,904 2.58 % The Bank maintains a blanket collateral agreement using qualifying loans with the FHLB of pittsburgh for future borrowing needs. At September 30, 2019, the Bank had the ability to obtain $193.3 million of additional FHLB advances. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2019 | |
INCOME TAXES | |
INCOME TAXES | 11. INCOME TAXES The Company files a consolidated federal income tax return. The Company uses the specific charge-off method for computing reserves for bad debts. Generally this method allows the Company to deduct an annual addition to the reserve for bad debts equal to its net charge-offs. The provision for income taxes for the fiscal years ended September 30, 2019, 2018 and 2017 consists of the following: Current: Federal expense $ 2,133 $ 2,429 $ 801 State expense 205 — — Total current taxes 2,338 2,429 801 Change in corporate tax rate — 1,756 — Deferred income tax expense (benefit) (188) (484) 140 Total income tax provision $ 2,150 $ 3,701 $ 941 Items that gave rise to significant portions of deferred income taxes are as follows: September 30, 2019 2018 (Dollars in Thousands) Deferred tax assets: Allowance for loan losses $ 1,488 $ 1,445 Nonaccrual interest 487 312 Accrued vacation 7 29 Capital loss carryforward 121 356 Split dollar life insurance 9 10 Post-retirement benefits 76 85 Unrealized losses on available for sale securities — 2,212 Unrealized losses on interest rate swaps 1,836 — Deferred compensation 809 838 Goodwill 69 80 Other 64 55 Employee benefit plans 216 239 Total deferred tax assets 5,182 5,661 Valuation allowance (121) (356) Total deferred tax assets, net of valuation allowance 5,061 5,305 Deferred tax liabilities: Property 141 179 Realized gain on equity securities 19 — Unrealized gains on available for sale securities 2,153 — Unrealized gains on interest rate swaps — 44 Purchase accounting adjustments 215 59 Deferred loan fees 175 368 Total deferred tax liabilities 2,703 650 Net deferred tax assets $ 2,358 $ 4,655 The Company establishes a valuation allowance for deferred tax assets when management believes that the deferred tax assets are not likely to be realized either through a carry back to taxable income in prior years, future reversals of existing taxable temporary differences, and, to a lesser extent, future taxable income. The valuation allowance totaled $121,000 and $356,000 at September 30, 2019 and 2018, respectively. The income tax expense differs from that computed at the statutory federal corporate tax rate as follows: Year Ended September 30, 2019 2018 2017 Percentage Percentage Percentage of Pretax of Pretax of Pretax Amount Income Amount Income Amount Income (Loss) (Dollars in Thousands) Tax at statutory rate $ 2,453 21.0 % $ 2,611 24.3 % $ 1,265 34.0 % Adjustments resulting from: State tax expense 162 1.3 — — — — Change in corporate tax rate — — 1,756 16.2 — — Tax exempt income (313) (2.7) (77) (0.7) (109) (2.9) Nondeductible merger expenses — — — — 80 2.1 Income from bank owned life insurance (135) (1.1) (155) (1.4) (230) (6.2) Employee benefit plans (27) (0.2) (134) (1.2) (39) (1.1) Other 10 0.1 (300) (2.9) (26) (0.6) Income tax expense $ 2,150 18.4 % $ 3,701 34.3 % $ 941 25.3 % On December 22, 2017, federal tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), was enacted. The Tax Act makes broad and complex changes to the U.S. tax code that affected our income tax rate in fiscal 2018. The Tax Act reduced the U.S. federal corporate tax rate from 34% to 21%. As a result, the Company was required to re-measure, through income tax expense, the deferred tax assets and liabilities using the enacted rate at which they are expected to be recovered or settled. The revaluation of the net deferred tax asset resulted in additional income tax expense of $1.8 million for the fiscal year ended September 30, 2018. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statements of Operations as a component of income tax expense. During fiscal 2017, the Internal Revenue Service conducted an audit of the Company’s tax returns for the year ended September 30, 2014, and no adverse findings were reported. The Company’s federal and state income tax returns for taxable years through September 30, 2015 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Sep. 30, 2019 | |
REGULATORY CAPITAL REQUIREMENTS | |
REGULATORY CAPITAL REQUIREMENTS | 12. REGULATORY CAPITAL REQUIREMENTS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and the Bank’s classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of Tier 1 capital (as defined in the regulations) to average assets (as defined) and risk-weighted assets (as defined), and of total capital (as defined) to risk-weighted assets. Management believes, as of September 30, 2019 and 2018, that the Company and the Bank met all regulatory capital adequacy requirements to which they each are subject. To be categorized as well capitalized, the Bank must maintain the minimum Tier 1 capital, Tier 1 common equity, Tier 1 risk-based and total risk-based ratios as set forth in the table below. The Company’s and the Bank’s actual capital amounts and ratios are also presented in the following table: To Be Well Capitalized Under Prompt Required for Capital Corrective Action Actual Adequacy Purposes Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) September 30, 2019: Tier 1 capital (to average assets) Company $ 131,859 10.89 % N/A N/A N/A N/A Bank 129,486 10.49 $ 49,386 4.0 % $ 61,732 5.0 % Tier 1 Common (to risk-weighted assets) Company 131,859 18.43 N/A N/A N/A N/A Bank 129,486 18.10 32,190 4.5 46,497 6.5 Tier 1 capital (to risk-weighted assets) Company 131,859 18.43 N/A N/A N/A N/A Bank 129,486 18.10 28,613 6.0 42,920 8.0 Total capital (to risk-weighted assets) Company 137,842 19.27 N/A N/A N/A N/A Bank 135,469 18.94 57,227 8.0 71,534 10.0 September 30, 2018: Tier 1 capital (to average assets) Company $ 129,890 12.51 % N/A N/A N/A N/A Bank 123,199 11.86 $ 41,542 4.0 % $ 51,928 5.0 % Tier 1 Common (to risk-weighted assets) Company 129,890 19.74 N/A N/A N/A N/A Bank 123,199 18.73 29,603 4.5 42,759 6.5 Tier 1 capital (to risk-weighted assets) Company 129,890 19.74 N/A N/A N/A N/A Bank 123,199 18.73 26,313 6.0 39,470 8.0 Total capital (to risk-weighted assets) Company 135,374 20.58 N/A N/A N/A N/A Bank 128,683 19.56 52,627 8.0 65,783 10.0 |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Sep. 30, 2019 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 13. EMPLOYEE BENEFITS The Bank is a member of a multi-employer (under the provisions of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986) defined benefit pension plan covering all employees meeting certain eligibility requirements. The Bank’s policy is to fund pension costs accrued. The expense relating to this plan for the years ended September 30, 2019, 2018 and 2017 was $632,000, $441,000 and $379,000, respectively. There are no collective bargaining agreements in place that require contributions to the plan. Additional information regarding the plan as of September 30, 2019 is noted below: Pentegra Defined Legal Name of Plan Financial Institutions Plan Employer Identification Number 13-5645888 The Company's Contribution for the year ended September 30, 2019 $ 632,000 Are Company's Contributions more than 5% of total contributions? No Funded Status 85.86 % The Pentegra Defined Benefits Plan for Financial Institutions is a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. During November 2016, participation in the plan by Bank employees was frozen in an effort to reduce expenses on a going forward basis. The Bank also has a defined contribution plan for employees meeting certain eligibility requirements. The defined contribution plan may be terminated at any time at the discretion of the Bank. There was an expense of $126,000 relating to this plan for the year ended September 30, 2019. There was an expense of $102,000 relating to this plan for the year ended September 30, 2018. There was no expense relating to the plan for 2017. As of December 31, 2016, the Boards of Directors of the Company and the Bank voted to terminate the Bank’s employee stock ownership plan (“ESOP”) effective December 31, 2016. The final allocation was made to the individual participants during December 2017. The expense relating to the ESOP for the years ended September 30, 2019, 2018 and 2017 was $-0-, $-0- and $152,000, respectively. The Company maintains the 2008 Recognition and Retention Plan (“RRP”) which is administered by a committee of the Board of Directors of the Company. The RRP provides for the grant of shares of common stock of the Company to officers, employees and directors of the Company. In order to fund the grant of shares under the RRP, the 2008 RRP purchased 213,528 shares (on a converted basis) of the Company’s common stock in the open market for an aggregating cost of approximately $2.5 million, at an average purchase price per share of $11.49. The Company made sufficient contributions to the 2008 RRP to fund these purchases. During February 2015, shareholders approved the 2014 Stock Incentive Plan (the “2014 SIP”). As part of the 2014 SIP, a maximum of 285,655 shares of common stock can be awarded as restricted stock awards or units, of which 233,500 shares were awarded during February 2015. In August 2016, the Company granted 7,473 shares under the 2008 RRP and 3,027 shares under the 2014 SIP. In March 2017, the Company granted 17,128 shares under the 2014 SIP. In March 2018, the Company granted 8,209 shares under the 2008 RRP and 18,291 shares under the 2014 SIP. Shares subject to awards under either plan generally vest at the rate of 20% per year over five years. During the year ended September 30, 2019, approximately $620,000 was recognized in compensation expense for the RRP. During the year ended September 30, 2018, approximately $565,000 was recognized in compensation expense for the RRP. During the year ended September 30, 2017, approximately $578,000 was recognized in compensation expense for the RRP. At September 30, 2019, approximately $713,000 of additional compensation expense for the shares awarded related to the RRP remained unrecognized. The weighted average period over which this expense will be recognized is 2.4 years. A summary of the Company’s non-vested stock award activity for the years ended September 30, 2019 and 2018 is presented in the following table: Year Ended September 30, 2019 Number of Weighted Average Shares Grant Date Fair Value Non-vested stock awards at beginning of year 116,916 $ 14.36 Issued — — Forfeited (1,812) 12.43 Vested (46,124) 13.43 Non-vested stock awards at the end of the period 68,980 $ 15.05 Year Ended September 30, 2018 Number of Weighted Average Shares Grant Date Fair Value Nonvested stock awards at beginning of year 142,594 $ 12.79 Issued 26,500 18.46 Forfeited (5,243) 11.91 Vested (46,935) 12.16 Nonvested stock awards at the end of the period 116,916 $ 14.36 Year Ended September 30, 2017 Number of Weighted Average Shares Grant Date Fair Value Nonvested stock awards at beginning of year 172,788 $ 12.03 Issued 17,128 17.43 Forfeited (1,467) 10.47 Vested (45,855) 11.72 Nonvested stock awards at the end of the period 142,594 $ 12.79 The Company maintains the 2008 Stock Option Plan (the “Option Plan”) which authorizes the grant of stock options to officers, employees and directors of the Company to acquire shares of common stock with an exercise price at least equal to the fair market value of the common stock on the grant date. Options generally become vested and exercisable at the rate of 20% per year over five years and are generally exercisable for a period of ten years after the grant date. A total of 533,808 (on a converted basis) shares of common stock were approved for future issuance pursuant to the Option Plan. As of September 30, 2018, all of the options had been awarded under the Option Plan. The 2014 SIP reserved up to 714,145 shares for issuance pursuant to options. Options to purchase 605,000 shares were awarded during February 2015 pursuant to the 2014 SIP. During August 2016, the Company granted 18,866 shares under the Option Plan and 8,634 shares under the 2014 SIP. In March 2017, the Company granted 22,828 shares under the 2014 SIP. In May 2017, the Company granted 25,000 shares under the 2014 SIP and 283 shares under the Option Plan. In March 2018, the Company granted 159,265 shares under the 2014 SIP and 18,235 shares under the Option Plan. In July 2019, the Company granted 39,702 shares under the 2014 SIP. No further grants can be made under the Option Plan in accordance with its terms. A summary of the status of the Company’ stock options under the Option Plan and the 2014 SIP as of September 30, 2019, 2018, and 2017 and changes during the years ended September 30, 2019, 2018, and 2017 are presented below: Year Ended September 30, 2019 Number of Weighted Average Shares Exercise Price Options outstanding at beginning of year 869,026 $ 13.41 Granted 39,702 18.16 Exercised (109,694) 11.91 Forfeited (6,000) 12.23 Outstanding at the end of the period 793,034 13.86 Exercisable at the end of the period 489,288 $ 12.21 Year Ended September 30, 2018 Number of Weighted Average Shares Exercise Price Options outstanding at beginning of year 922,564 $ 12.04 Granted 177,500 18.46 Exercised (216,796) 11.76 Forfeited (14,242) 11.90 Outstanding at the end of the period 869,026 13.41 Exercisable at the end of the period 451,899 $ 11.45 Year Ended September 30, 2017 Number of Weighted Average Shares Exercise Price Options outstanding at beginning of year 921,909 $ 11.70 Granted 47,828 17.92 Exercised (43,890) 11.41 Forfeited (3,283) 11.84 Outstanding at the end of the period 922,564 12.04 Exercisable at the end of the period 554,802 $ 11.47 The weighted average remaining contractual term of the outstanding options was approximately 6.1 years for options outstanding as of September 30, 2019. The estimated fair value of options granted during fiscal 2009 was $2.98 per share, $2.92 for options granted during fiscal 2010, $3.34 for options granted during fiscal 2013, $4.67 for the options granted during fiscal 2014, $4.58 for options granted during fiscal 2015, $2.13 for options granted during fiscal 2016, $3.18 for options granted during fiscal 2017, $3.63 for options granted during fiscal 2018 and $3.38 for options granted in 2019. The fair value for grants made in fiscal 2017 was estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: an exercise and fair value of $17.43, term of seven years, volatility rate of 14.37%, interest rate of 2.22% and a yield rate of 0.69%. The fair value for grants made in fiscal 2018 was estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: an exercise and fair value of $18.46, term of seven years, volatility rate of 15.90%, interest rate of 2.82% and a yield rate of 1.08%. The fair value for grants made in fiscal 2019 was estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: an exercise and fair value of $18.16, term of seven years, volatility rate of 17.76%, interest rate of 1.87% and a yield rate of 1.10%. During the year ended September 30, 2019, $573,000 was recognized in compensation expense for the Option Plan and the 2014 SIP. During the year ended September 30, 2018, $540,000 was recognized in aggregate compensation expense for the Option Plan and the 2014 SIP. During the year ended September 30, 2017, $531,000 was recognized in aggregate compensation expense for the Option Plan and the 2014 SIP. At September 30, 2019, approximately $1.1 million of additional compensation expense for awarded options remained unrecognized. The weighted average period over which this expense will be recognized is approximately 2.8 years. |
INTEREST RATE SWAP AGREEMENTS
INTEREST RATE SWAP AGREEMENTS | 12 Months Ended |
Sep. 30, 2019 | |
INTEREST RATE SWAP AGREEMENTS | |
INTEREST RATE SWAP AGREEMENTS | 14. INTEREST RATE SWAP AGREEMENTS The Company uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of either fixed or variable-rate amounts in exchange for the receipt of variable or fixed-rate amounts from a counterparty, respectively. The Company uses interest rate swaps to manage its exposure to changes in fair value. Interest rate swaps designated as fair value hedges involve the receipt of variable-rate payments from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. The Company has contracted with a third party to participate in interest rate swap contracts. One of the swaps is a cash flow hedge associated with FHLB advances at both September 30, 2019 and September 30, 2018, while there are eleven additional cash flow hedges tied to wholesale funding at September 30, 2019. These interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments. During the fiscal year ended September 30, 2019, $12,000 of expense was recognized as ineffectiveness through earnings, while $48,000 of income was recognized as ineffectiveness through earnings during fiscal 2018. There were nine interest rate swaps designated as fair value hedges involving the receipt of variable-rate payments from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements that were applicable to three loans and seven investment securities as of September 30, 2019 and three loans and seven investments at September 30, 2018. The fair value of the swaps is recorded in the other liabilities section of the statement of financial condition. Below is a summary of the interest rate swap agreements and the terms as of September 30, 2019 and 2018. 2019 Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Gain (Loss) (Dollars in thousands) FHLB Advance $ 10,000 2.70 % 2.70 % 1 Mth Libor 10-Apr-25 10-Apr-25 $ (719) State and political subdivisions 21,570 3.06 % 3.07 % 3 Mth Libor 1-Feb-27 1-May-28 (2,502) Commercial loans 17,339 4.10 % 5.74 % 1 Mth Libor +225 to 276 bp 13-Jun-25 1-Aug-26 — 30 day wholesale funding 65,000 1.94 % 2.51 % 1 Mth Libor 15-Feb-24 12-Jun-26 (1,415) 90 day wholesale funding 135,000 2.51 % 2.78 % 3 Mth Libor 11-Jan-24 27-Mar-24 (6,605) $ (11,241) 2018 Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Gain (Loss) (Dollars in t housands) FHLB Advance $ 10,000 2.70 % 2.70 % 1 Mth Libor 10-Apr-25 10-Apr-25 $ 129 State and political subdivisions 21,570 3.06 % 3.07 % 3 Mth Libor 1-Feb-27 1-May-28 82 Commercial loans 9,400 4.10 % 5.74 % 1 Mth Libor +250 to 276 bp 13-Jun-25 1-Aug-26 — $ 211 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Sep. 30, 2019 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
COMMITMENTS AND CONTINGENT LIABILITIES | 15. COMMITMENTS AND CONTINGENT LIABILITIES At September 30, 2019, the Company had $32.4 million in outstanding commitments to originate fixed and variable-rate loans with market interest rates ranging from 1.99% to 6.50%. At September 30, 2018, the Company had $40.4 million in outstanding commitments to originate fixed and variable-rate loans with market interest rates ranging from 4.25% to 6.25%. The aggregate undisbursed portion of loans-in-process amounted to $114.5 million and $54.5 million, respectively, at September 30, 2019 and 2018. The Company also had commitments under unused lines of credit of $37.5 million as of September 30, 2019 and $51.9 million as of September 30, 2018 and letters of credit outstanding of $1.5 million as of September 30, 2019 and $1.6 million as of September 30, 2018. The Company is subject to various pending claims and contingent liabilities arising in the normal course of business which are not reflected in the accompanying consolidated financial statements. Management considers that the aggregate liability, if any, resulting from such matters will not be material. Among the Company’s contingent liabilities are exposures to limited recourse arrangements with respect to the Company’s sales of whole loans and participation interests. At September 30, 2019, the exposure, which represents a portion of credit risk associated with the sold interests, amounted to $1.4 million. This exposure is for the life of the related loans and payables, on the Company’s proportionate share, as actual losses are incurred. The Company is involved in various legal proceedings occurring in the ordinary course of business. Management of the Company, based on discussions with litigation counsel, does not believe that such proceedings will have a material adverse effect on the financial condition or operations of the Company. However, there can be no assurance that any of the outstanding legal proceedings to which the Company is party will not be decided adversely to the Company’s interest and have a material adverse effect on the financial condition and operations of the Company. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Sep. 30, 2019 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 16. FAIR VALUE MEASUREMENT The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2019 and 2018, respectively. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Generally accepted accounting principles used in the United States establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. The three broad levels of hierarchy are as follows: Level 1 Level 2 Level 3 Those assets as of September 30, 2019 which are to be measured at fair value on a recurring basis are as follows: Category Used for Fair Value Measurement Level 1 Level 2 Level 3 Total (Dollars in Thousands) Assets: Securities available for sale: U.S. Government and agency obligations $ — $ 24,865 $ — $ 24,865 State and political subdivisions — 47,646 — 47,646 Mortgage-backed securities - U.S. Government agencies — 370,772 — 370,772 Corporate bonds — 69,539 — 69,539 Equity securities 95 — — 95 Total $ 95 $ 512,822 $ — $ 512,917 Liabilities: Interest rate swap contracts $ — $ 11,241 $ — $ 11,241 Total $ — $ 11,241 $ — $ 11,241 Those assets as of September 30, 2018 which are measured at fair value on a recurring basis are as follows: Category Used for Fair Value Measurement Level 1 Level 2 Level 3 Total (Dollars in Thousands) Assets: Securities available for sale: U.S. Government and agency obligations $ — $ 24,171 $ — $ 24,171 State and political subdivisions — 21,536 — 21,536 Mortgage-backed securities - U.S. Government agencies — 187,360 — 187,360 Corporate bonds — 73,083 — 73,083 FHLMC preferred stock 37 — — 37 Interest rate swap contracts — 211 — 211 Total $ 37 $ 306,361 $ — $ 306,398 Certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The Company measures impaired loans and real estate owned at fair value on a non-recurring basis. Impaired Loans Collateral dependent impaired loans are based on the fair value of the collateral which is based on appraisals and would be categorized as Level 2 measurement. In some cases, adjustments are made to the appraised values for various factors including the age of the appraisal, age of the comparable included in the appraisal, and known changes in the market and in the collateral. These adjustments are based upon unobservable inputs, and therefore, the fair value measurement has been categorized as a Level 3 measurement. These loans are reviewed for impairment and written down to their net realizable value by charges against the allowance for loan losses. The collateral underlying these loans had a fair value of $15.5 million and $14.3 million at September 30, 2019 and 2018, respectively. Real Estate Owned Once an asset is determined to be uncollectible, the underlying collateral is generally repossessed and reclassified to foreclosed real estate and repossessed assets. These repossessed assets are carried at the lower of cost or fair value of the collateral, based on independent appraisals, less cost to sell and would be categorized as Level 2 measurement. In some cases, adjustments are made to the appraised values for various factors including the age of the appraisal, the age of the comparables included in the appraisal, and known changes in the market and in the collateral. Thus the evaluations are based upon unobservable inputs, and therefore, the fair value measurement has been categorized as a Level 3 measurement. Summary of Non-Recurring Fair Value Measurements At September 30, 2019 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 15,542 $ 15,542 Real estate owned — — 348 348 Total $ — $ — $ 15,890 $ 15,890 At September 30, 2018 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 16,048 $ 16,048 Real estate owned — — 1,026 1,026 Total $ — $ — $ 17,074 $ 17,074 The following tables provide information describing the valuation processes used to determine nonrecurring fair value measurements categorized within level 3 of the fair value hierarchy: At September 30, 2019 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Impaired loans $ 15,542 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 6% to 9% discount / 7% Real estate owned $ 348 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 22% discount At September 30, 2018 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Impaired loans $ 16,048 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 6% to 8% discount / 6% Real estate owned $ 1,026 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 18% discount (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various Level 3 inputs, which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. The fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. 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 could 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. On a prospective basis, the Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes in the financial statements. The September 30, 2018, fair value of each class of financial instruments disclosure did not utilize the exit price notion when measuring fair value and, therefore, would not be comparable to the September 30, 2019 disclosure. The Company estimated the fair value based on guidance from ASC 820-10, Fair Value Measurements, which defines fair value as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is no active observable market for sale information on community bank loans and, thus, Level 3 fair value procedures were utilized, primarily in the use of present value techniques incorporating assumptions that market participants would use in estimating fair values. Fair Value Measurements at Carrying Fair September 30, 2019 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Cash and cash equivalents $ 47,968 $ 47,968 $ 47,968 $ — $ — Certificates of deposit 2,351 2,351 2,351 — — Investment and mortgage-backed securities available for sale 512,822 512,822 — 512,822 — Equity securities 95 95 95 Investment and mortgage-backed securities held to maturity 68,635 69,507 — 69,507 — Loans receivable, net 585,456 585,476 — — 585,476 Accrued interest receivable 4,549 4,549 4,549 — — Restricted stock 16,406 16,406 16,406 — — Bank owned life insurance 31,841 31,841 31,841 — — Liabilities: Checking accounts 75,596 75,596 75,596 — — Money market deposit accounts 75,766 75,766 75,766 — — Passbook, club and statement savings accounts 80,899 80,899 80,899 — — Certificates of deposit 513,183 529,099 — — 529,099 Accrued interest payable 4,328 4,328 4,328 — — Advances from FHLB -short-term 90,000 90,000 90,000 — Advances from FHLB -long-term 286,904 293,839 — — 293,839 Advances from borrowers for taxes and insurance 2,332 2,332 2,332 — — Interest rate swap contracts 11,241 11,241 — 11,241 — Carrying Fair September 30, 2018 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Cash and cash equivalents $ 48,171 $ 48,171 $ 48,171 $ — $ — Certificates of deposit 1,604 1,604 1,604 — — Investment and mortgage-backed securities available for sale 306,187 306,187 37 306,150 — Investment and mortgage-backed securities held to maturity 59,852 55,927 — 55,927 — Loans receivable, net 602,932 598,596 — — 598,596 Accrued interest receivable 3,825 3,825 3,825 — — Restricted stock 7,585 7,585 7,585 — — Interest rate swap contracts 225 225 — 225 — Bank owned life insurance 28,691 28,691 28,691 — — Liabilities: Checking accounts 62,886 62,886 62,886 — — Money market deposit accounts 60,686 60,686 60,686 — — Passbook, club and statement savings accounts 96,866 96,866 96,866 — — Certificates of deposit 563,820 569,375 — — 569,375 Accrued interest payable 3,232 3,232 3,232 — — Advances from FHLB -short-term 10,000 10,000 10,000 — — Advances from FHLB -long-term 144,683 141,116 — — 141,116 Advances from borrowers for taxes and insurance 2,083 2,083 2,083 — — Cash and Cash Equivalents —For cash and cash equivalents, the carrying amount is a reasonable estimate of fair value. Certificates of deposit —For certificates of deposit, the carrying amount is a reasonable estimate of fair value. Investments and Mortgage-Backed Securities — The fair value of investment securities and mortgage-backed securities is based on quoted market prices, dealer quotes, and prices obtained from independent pricing services. Loans Receivable — The fair value of loans is estimated based on present value using the current market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The carrying value that fair value is compared to is net of the allowance for loan losses and other associated premiums and discounts. Due to the significant judgment involved in evaluating credit quality, loans are classified within level 3 of the fair value hierarchy. Accrued Interest Receivable – For accrued interest receivable, the carrying amount is a reasonable estimate of fair value. Restricted Stock — The carrying amount of restricted stock approximates fair value, and considers the limited marketability of such securities. Restricted stock is classified within level 2 of the fair value hierarchy. Bank Owned Life Insurance — The fair value of bank owned life insurance is based on the cash surrender value obtained from an independent advisor that are be derivable from observable market inputs. Checking Accounts, Money Market Deposit Accounts, Passbook Accounts, Club Accounts, Statement Savings Accounts, and Certificates of Deposit — The fair value of passbook accounts, club accounts, statement savings accounts, checking accounts, and money market deposit accounts is the amount reported in the financial statements. The fair value of certificates of deposit is based on market rates currently offered for deposits with similar remaining periods until maturity. Advances from Federal Home Loan Bank (short-term) — The fair value of advances from FHLB is the amount payable on demand at the reporting date. Advances from Federal Home Loan Bank (long-term) — The fair value of advances from FHLB is the amount payable on demand at the reporting date. Accrued Interest Payable – For accrued interest payable, the carrying amount is a reasonable estimate of fair value. Advances from borrowers for taxes and insurance – For advances from borrowers for taxes and insurance, the carrying amount is a reasonable estimate of fair value. Interest rate swap contracts – For interest rate swap contracts, the fair values of derivative contracts are based upon the estimated amount the Company would receive or pay to terminate the contracts or agreements, taking into account underlying interest rates, creditworthiness of underlying customers for credit derivatives and, when appropriate, the creditworthiness of the counterparties. Commitments to Extend Credit and Letters of Credit — The majority of the Bank’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 Bank and the borrower. The estimated fair value approximates the recorded deferred fee amounts, which are not significant. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2019 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 17. GOODWILL AND OTHER INTANGIBLE ASSETS The Company’s goodwill and intangible assets are related to the acquisition of Polonia Bancorp completed on January 1, 2017. Balance Balance October 1, Additions/ September 30, Amortization 2018 Adjustments Amortization 2019 Period (Dollars in Thousands) Goodwill $ 6,102 $ — $ — $ 6,102 Core deposit intangible 571 — (123) 448 10 years $ 6,673 $ — $ (123) $ 6,550 As of September 30, 2019, the future fiscal periods amortization expense for the core deposit intangible is: (Dollars in Thousands) 2020 $ 108 2021 93 2022 78 2023 64 2024 49 Thereafter 56 $ 448 |
PRUDENTIAL BANCORP, INC. (PAREN
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) | 12 Months Ended |
Sep. 30, 2019 | |
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) | |
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) | 18. PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) STATEMENT OF FINANCIAL CONDITION September 30, 2019 2018 (Dollars in Thousands) Assets: Cash $ 1,004 $ 5,435 Investment in Bank 137,238 121,718 Other assets 1,369 1,256 Total assets $ 139,611 $ 128,409 Stockholders' equity: Preferred stock — — Common stock 108 108 Additional paid-in-capital 118,384 118,345 Treasury stock (29,698) (27,744) Retained earnings 49,625 45,854 Accumulated other comprehensive income (loss) 1,192 (8,154) Total stockholders' equity $ 139,611 $ 128,409 INCOME STATEMENT For the year ended September 30, 2019 2018 2017 (Dollars in Thousands) Interest on ESOP loan $ — $ — $ 59 Equity in the undistributed earnings of the Bank 9,954 7,465 3,255 Other income — — — Total income 9,954 7,465 3,314 Professional services 168 168 369 Other expense 369 362 413 Total expense 537 530 782 Income before income taxes 9,417 6,936 2,532 Income tax benefit (113) (128) (246) Net income $ 9,530 $ 7,064 $ 2,778 CASH FLOWS For the year ended September 30, 2019 2018 2017 (Dollars in Thousands) Operating activities: Net income $ 9,530 $ 7,064 $ 2,778 Other, net (115) (108) 46 Equity in the undistributed earnings of the Bank (9,954) (7,465) (3,255) Net cash used in operating activities (539) (509) (431) Investing activities: Repayments received on ESOP loan — — 5,277 Acquisitions, net of cash — — 3,966 Net cash provided by investing activities — — 9,243 Financing activities: Purchase of treasury stock (3,108) (2,548) (4,526) Cash dividends paid (5,784) (6,300) (1,035) Dividends from the Bank 5,000 5,000 — Net cash used in financing activities (3,892) (3,848) (5,561) Net (decrease) increase in cash and cash equivalents (4,431) (4,357) 3,251 Cash and cash equivalents, beginning of year 5,435 9,792 6,541 Cash and cash equivalents, end of year $ 1,004 $ 5,435 $ 9,792 |
CONSOLIDATED QUARTERLY FINANCIA
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Sep. 30, 2019 | |
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) | |
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) | 19. CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) Unaudited quarterly financial data for the years ended September 30, 2019, 2018, and 2017 is as follows: September 30, 2019 September 30, 2018 1st 2nd 3rd 4th 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr (Dollars in Thousands, Except Per Share Data) Interest income $ 10,001 $ 11,134 $ 11,273 $ 11,631 $ 8,036 $ 8,355 $ 8,931 $ 9,529 Interest expense 3,986 4,811 5,058 5,434 1,900 2,127 2,709 3,401 Net interest income 6,015 6,323 6,215 6,197 6,136 6,228 6,222 6,128 Provision for loan losses 0 0 0 100 210 150 325 125 Net interest income after provision for loan losses 6,015 6,323 6,215 6,097 5,926 6,078 5,897 6,003 Non-interest income 380 542 1,187 985 415 567 985 533 Non-interest expense 3,992 4,146 4,190 3,696 4,043 3,869 3,770 3,957 Income before income tax expense 2,403 2,719 3,212 3,386 2,298 2,776 3,112 2,579 Income tax expense 429 380 582 799 2,264 619 676 142 Net income $ 1,974 $ 2,339 $ 2,630 $ 2,587 $ 34 $ 2,157 $ 2,436 $ 2,437 Per share: Earnings per share - basic $ 0.22 $ 0.27 $ 0.30 $ 0.30 $ 0.00 $ 0.24 $ 0.28 $ 0.27 Earnings per share - diluted $ 0.22 $ 0.26 $ 0.29 $ 0.29 $ 0.00 $ 0.24 $ 0.26 $ 0.26 Dividends per share $ 0.05 $ 0.05 $ 0.50 $ 0.05 $ 0.20 $ 0.05 $ 0.05 $ 0.40 September 30, 2017 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr (Dollars in Thousands, Except Per Share Data) Interest income $ 4,505 $ 6,671 $ 7,430 $ 7,737 Interest expense 858 1,373 1,377 1,656 Net interest income 3,647 5,298 6,053 6,081 Provision for loan losses 185 2,365 30 410 Net interest income after provision for loan losses 3,462 2,933 6,023 5,671 Non-interest income 358 518 625 699 Non-interest expense 2,720 6,763 3,500 3,587 Income (loss) before income tax expense 1,100 (3,312) 3,148 2,783 Income tax expense(benefit) 370 (1,171) 1,031 711 Net income $ 730 $ (2,141) $ 2,117 $ 2,072 Per share: Earnings (loss) per share - basic $ 0.09 $ (0.27) $ 0.25 $ 0.26 Earnings (loss) per share - diluted $ 0.09 $ (0.27) $ 0.25 $ 0.24 Dividends per share $ 0.03 $ 0.03 $ 0.03 $ 0.03 Due to rounding, the sum of the earnings per share in individual quarters may differ from reported amounts. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Consolidation | Consolidation – The accompanying consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The most significant estimates and assumptions in the consolidated financial statements are recorded in the allowance for loan losses, the fair value of financial instruments, other than temporary impairment of securities, goodwill and valuation of deferred tax assets. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents — For purposes of reporting cash flows, cash and cash equivalents include cash and amounts due from depository institutions and interest-bearing deposits with original maturities of less than 90 days. |
Certificates of Deposit | Certificates of Deposit— The Bank may purchase certificates of deposit issued by FDIC-insured banks in amounts of up to $249,000 and with maturities of between one to five years. |
Investment Securities and Mortgage-Backed Securities | Investment Securities and Mortgage-Backed Securities — Management classifies and accounts for debt securities as follows: Held to Maturity —Debt securities that management has the positive intent and ability to hold until maturity are classified as held to maturity and are carried at their remaining unpaid principal balance, net of unamortized premiums or unaccreted discounts. Premiums are amortized and discounts are accreted using the interest method over the estimated remaining term of the underlying security. Available for Sale —Debt securities that will be held for indefinite periods of time, including securities that may be sold in response to changes in market interest or prepayment rates, needs for liquidity, and changes in the availability and the yield of alternative investments, are classified as available for sale. These assets are carried at fair value. Fair value is determined using public market prices, dealer quotes, and prices obtained from independent pricing services that may be derivable from observable and unobservable market inputs. Unrealized gains and losses are excluded from earnings and are reported net of tax as a separate component of stockholders’ equity until realized. Realized gains or losses on the sale of investment and mortgage-backed securities are reported in earnings as of the trade date and determined using the adjusted cost of the specific security sold. Premiums are amortized and discounts are accreted using the interest method over the estimated remaining term of the underlying security. Equity Securities - Equity securities are held at fair value. Holding gains and losses and dividends are recorded as components of non-interest income. |
Other-than-temporary impairment | Other-than-temporary impairment —Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. For all securities that are in an unrealized loss position for an extended period of time and for all securities whose fair value is significantly below amortized cost, management performs an evaluation of the specific events attributable to the market decline of the security. Management considers the length of time and extent to which the security’s fair value has been below cost as well as the general market conditions, industry characteristics, and the fundamental operating results of the issuer to determine if the decline is other-than-temporary. Management also considers as part of the evaluation its intention whether or not to sell the security until its market value has recovered to a level at least equal to the amortized cost. When management determines that a security’s unrealized loss is other-than-temporary, a realized loss is recognized in the period in which the decline in value is determined to be other-than-temporary. The write-down is measured based on the fair value of the security at the time the Company determines the decline in value is other-than-temporary. |
Loans Receivable | Loans Receivable — Lending consists of various loan types including single-family residential mortgage loans, construction and land development loans, non-residential or commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, and consumer loans and the loans are stated at their unpaid principal balances, net of unamortized net fees/costs. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balance adjusted for unearned income, the allowance for loan losses and any unamortized deferred fees or costs. |
Loan Origination and Commitment Fees | Loan Origination and Commitment Fees — Management defers loan origination and commitment fees, net of certain direct loan origination costs. The balance is accreted into income as a yield adjustment over the life of the loan using the level-yield method. |
Interest on Loans | Interest on Loans — Management recognizes interest on loans on the accrual basis. Income recognition is discontinued when a loan becomes 90 days or more delinquent as to interest and/or principal. Any interest previously accrued is deducted from interest income. Such interest ultimately collected is credited to income when loans are no longer 90 days or more delinquent. |
Allowance for Loan Losses | Allowance for Loan Losses— The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio as of the Consolidated Statement of Financial Condition date. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance, and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses charged to operations. The provision for loan losses is based on management’s periodic evaluation of individual loans, economic factors, past loan loss experience, changes in the composition and volume of the portfolio, and other relevant factors, both qualitative and quantitative. The estimates used in determining the adequacy of the allowance for loan losses, including the amounts and timing of future cash flows expected on impaired loans, are particularly susceptible to changes in the near term. Impaired loans are loans for which it is not probable to collect all amounts due according to the contractual terms of the loan agreements. Management individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for impaired loans is determined by the difference between the present value of the expected cash flows related to the loans, using the original interest rate, and their recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. When foreclosure is probable, impairment is measured based on the fair value of the collateral. Mortgage loans and consumer loans are comprised of large groups of smaller balance homogeneous loans which are evaluated for impairment collectively. Loans that experience insignificant payment delays, which are defined as less than 90 days, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all of the circumstances surrounding the loan and the borrower including the length of the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. |
Real Estate Owned | Real Estate Owned — Real estate acquired through, or in lieu of, loan foreclosure is recorded at fair value at the date of acquisition, less estimated selling costs, establishing a new basis. Costs related to the development and improvement of real estate owned properties are capitalized and those relating to holding the properties are charged to expense. After foreclosure, a valuation is periodically performed by management and a write-down is recorded, if necessary, by a charge to operations if the carrying value of a property exceeds its fair value less estimated costs to sell. |
Restricted Bank Stock | Restricted Bank Stock – Restricted bank stock includes Federal Home Loan Bank (“FHLB”) and Atlantic Community Bankers Bank (“ACBB”) stock and is classified as a restricted equity security because ownership is restricted and there is no established market for its resale. FHLB and ACBB stock is carried at cost and is evaluated for impairment when certain conditions warrant further consideration. The Bank is a member of the Federal Home Loan Bank of Pittsburgh and as such, is required to maintain a minimum investment in stock of the Federal Home Loan Bank that varies with the level of advances outstanding with the Federal Home Loan Bank. The stock is bought from and sold to the Federal Home Loan Bank based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the Federal Home Loan Bank as compared to the capital stock amount and the length of time this situation has persisted; (b) commitments by the Federal Home Loan Bank to make payments required by law or regulation and the level of such payments in relation to the operating performance; (c) the impact of legislative and regulatory changes on the customer base of the Federal Home Loan Bank; and (d) the liquidity position of the Federal Home Loan Bank. The Federal Home Loan Bank of Pittsburgh continues to report net income, continues to declare quarterly cash dividends and had its Aaa bond rating affirmed by Moody’s and its AA+ rating affirmed by Standard and Poor’s during 2019 and remained unchanged as of September 30, 2019. With consideration given to these factors, management concluded that the stock was not impaired at September 30, 2019 or 2018. In 2018, the Bank purchased $90,000 of stock in ACBB to support a $12.5 million line of credit. The line has not been drawn on. |
Office Properties and Equipment | Office Properties and Equipment — Land is carried at cost. Office properties and equipment are recorded at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the expected useful lives of the assets. The costs of maintenance and repairs are expensed as they are incurred, and renewals and betterments are capitalized and depreciated over their useful lives. The estimated useful life is generally 10-39 years for office properties and 1-7 years for furniture and equipment. |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance— The Company funds the policy premiums for life insurance covering the lives of certain officers and directors of the Bank. The bank owned life insurance policies (“BOLI”) provide an attractive tax-exempt return to the Company and is being used by the Company to fund various employee benefit plans and arrangements. The BOLI is recorded at its cash surrender value. |
Dividend Payable | Dividend Payable – Upon declaration of a dividend, a payable is established with a corresponding reduction to retained earnings at the declaration date. There was no dividend payable as of September 30, 2019 or 2018. The Company paid $5.8 million, $6.3 million, and $1.0 million in cash dividends during the fiscal years ended September 30, 2019, 2018 and 2017, respectively. |
Goodwill | Goodwill – Goodwill represents the excess of cost over the identifiable net assets of businesses acquired. Goodwill is recognized as an asset and is to be reviewed for impairment annually as of March 31 and between annual tests when events and circumstances indicate that impairment may have occurred. The Company’s goodwill and intangible assets are related to the acquisition of Polonia Bancorp on January 1, 2017. |
Share-Based Compensation | Share-Based Compensation – The Company accounts for stock-based compensation issued to employees, directors, and where appropriate non-employees, in accordance with U.S. GAAP. Under fair value provisions, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the appropriate vesting period using the straight-line method. The amount of stock-based compensation recognized at any date must at least equal the portion of the grant date fair value of the award that is vested at that date and as a result it may be necessary to recognize the expense using a ratable method. Determining the fair value of stock-based awards at the date of grant requires judgment, including estimating the expected term of the stock options and the expected volatility of the Company’s stock. In addition, judgment is required in estimating the amount of stock-based awards that are expected to be forfeited. If actual results differ significantly from these estimates or different key assumptions were used, it could have a material effect on the Company’s Consolidated Financial Statements. See Note 13 of the Notes to Consolidated Financial Statements for additional information regarding stock-based compensation. |
Treasury Stock | Treasury Stock – Common stock held in treasury is accounted for using the cost method, which treats stock held in treasury as a reduction to total stockholders’ equity. During the year ended September 30, 2019, the Company repurchased 207,543 shares of common stock at an average price per share of $17.47. The shares may be purchased in the open market or in privately negotiated transactions from time to time depending upon market conditions and other factors over a one-year period or such longer period of time as may be necessary to complete such repurchases. |
Comprehensive Income | Comprehensive Income —Management presents in the consolidated statements of comprehensive income those amounts arising from transactions and other events which currently are excluded from the statements of operations and are recorded directly to stockholders’ equity. For the fiscal years ended September 30, 2019, 2018 and 2017, the components of comprehensive income were net income, unrealized holding (loss) gain, net of income tax (benefit) expense, on available for sale securities and reclassifications related to realized gains on sale of securities recognized in earnings, net of tax, and unrealized holdings (loss)gain, net of tax, on the fair value of interest rate swaps. Reclassifications are made to avoid double counting in comprehensive income items which are displayed as part of net income for the period. |
Income Taxes | Income Taxes— Management records deferred income taxes that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Management exercises significant judgment in the evaluation of the amount and timing of the recognition of the resulting tax assets and liabilities. The judgments and estimates required for the evaluation are updated based upon changes in business factors and the tax laws. If actual results differ from the assumptions and other considerations used in estimating the amount and timing of tax recognized, there can be no assurance that additional expense will not be required in future periods. In evaluating the Company’s ability to recover deferred tax assets, management considers all available positive and negative evidence, including past operating results and forecast of future taxable income. In determining future taxable income, management makes assumptions for the amount of taxable income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require management to make judgments about future taxable income and are consistent with the plans and estimates the Company uses to manage the business. Any reduction in estimated future taxable income may require management to record an additional valuation allowance against the deferred tax assets. An increase in the valuation allowance would result in additional income tax expense in the period and could have a significant impact on our future earnings. |
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities | Transfers and Servicing of Financial Assets and Extinguishments of Liabilities — Management recognizes the financial and servicing assets it controls and the liabilities it has incurred, and will derecognize financial assets when control has been surrendered, and derecognize liabilities when extinguished. Servicing assets and other retained interests in the transferred assets are measured by allocating the previous carrying amount between the assets sold, if any, and retained interests, if any, based on their relative fair values at the date of transfer. |
Interest Rate Swap Agreement | Interest Rate Swap Agreement - For asset/liability management purposes, the Company uses interest rate swap agreements to hedge various exposures or to modify interest rate characteristics of assets and liabilities. Interest rate swaps are contracts in which a series of interest rate flow is exchanged over a prescribed period. The notional amount on which the interest payments are based is not exchanged. These swap agreements are derivative instruments and generally convert a portion of the Company’s variable-rate debt to a fixed rate (cash flow hedge) and convert a portion of its fixed-rate loans to a variable rate (fair value hedge). For the fair value hedges, changes in the fair value of the interest rate swap are expected to be “perfectly effective” in offsetting changes in the fair value of the hedged item, thus no portion of the change in market value is anticipated to be recognized in earnings. For cash flow hedges, the net settlement (upon close-out or termination) that offsets changes in the value of the hedged debt is deferred and amortized into net interest income over the life of the hedged debt. For fair value hedges, the net settlement (upon close-out or termination) that offsets changes in the value of the loans adjusts the basis of the loans and is deferred and amortized to loan interest income over the life of the loans. The portion, if any, of the net settlement amount that did not offset changes in the value of the hedged asset or liability is recognized immediately in non-interest income. Interest rate derivative financial instruments receive hedge accounting treatment only if they are designated as a hedge and are expected to be, and are, effective in substantially reducing interest rate risk arising from the assets and liabilities identified as exposing the Company to risk. Those derivative financial instruments that do not meet specified hedging criteria would be recorded at fair value, with changes in fair value recorded in income. If periodic assessment indicates derivatives no longer provide an effective hedge, the derivative contracts would be closed out and settled, or classified as a trading activity. |
Loans Acquired | Loans Acquired - Loans acquired including loans that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. Loans are evaluated individually to determine if there is evidence of deterioration of credit quality since origination. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining estimated life. Decreases in expected cash flows are recognized immediately as impairment. Any valuation allowances on these impaired loans reflect only losses incurred after acquisition. Loans acquired with evidence of deterioration of credit quality since origination were not material. For purchased loans acquired that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value. Loans are aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. Subsequent to the purchase date, the methods utilized to estimate the required allowance for credit losses for these loans is similar to originated loans; however, the Company records a provision for loan losses only when the required allowance exceeds any remaining credit discounts. The remaining differences between the purchase price and the unpaid principal balance at the date of acquisition are recorded in interest income over the life of the loans. |
Reclassification of Comparative Amounts | Reclassification of Comparative Amounts - Certain items previously reported have been reclassified to conform to the current year’s reporting format. Such reclassifications did not affect consolidated net statement of operations or consolidated stockholders’ equity. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective October 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers – Topic 606, and all subsequent ASUs that modified ASC 606. The Company has elected to apply the standard utilizing the modified retrospective approach with a cumulative effect of adoption for the impact from uncompleted contracts at the date of adoption. The adoption of this guidance did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustments were recorded. Management determined that the primary sources of revenue emanating from interest and dividend income on loans and securities along with noninterest revenue resulting from investment security gains, loan servicing, gains on the sale of loans, commitment fees, fees from financial guarantees, certain credit cards fees, and income on bank-owned life insurance are not within the scope of ASC 606. As a result, no changes were made during the period related to these sources of revenue, which cumulatively comprise 98 percent of the total revenue of the Company. Services within the scope of ASC 606 include income from service charges on deposit accounts, other service income, ATM fees and gain on sale of other real estate owned, net. For these accounts, fees are related to specific customer transactions and are attributable to specific performance obligations of the Bank where the revenue is recognized at a defined point in time: completion of the requested service/transaction. Effective October 1, 2018, the Company adopted ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This Update applies to all entities that hold financial assets or owe financial liabilities and is intended to provide more useful information on the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, this Update (a) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The adoption of this Update did not have a significant impact on the Company’s financial statements. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2018 and interim periods within those years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, and for interim periods within fiscal years beginning after December 15, 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact on the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a one percent increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be affected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . This Update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. The Company does not anticipate the impact the adoption of the standard will have a significant impact on the Company’s financial position and results of operations. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) , which simplified the accounting for nonemployee share-based payment transactions. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this Update improve the following areas of nonemployee share-based payment accounting: (a) the overall measurement objective, (b) the measurement date, (c) awards with performance conditions, (d) classification reassessment of certain equity-classified awards, (e) calculated value (nonpublic entities only), and (f) intrinsic value (nonpublic entities only). The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company does not anticipate the adoption of the standard will have a significant impact on the Company’s financial position or results of operations. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements . The Update removes the requirement to disclose the amount of and reasons for transfers between Level I and Level II of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level III fair value measurements. The Update requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level III fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level III fair value measurements. This Update is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In October 2018, the FASB issued ASU 2018-16 , Derivatives and Hedging (Topic 815) . The amendments in this Update permit use of the Overnight Index Swap (OIS) rate based on the Secured Overnight Financing Rate (SOFR) as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to the interest rates on direct Treasury obligations of the U.S. government, the London Interbank Offered Rate (LIBOR) swap rate, the OIS rate based on the Fed Funds Effective Rate, and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate. For entities that have not already adopted Update 2017-12, the amendments in this Update are required to be adopted concurrently with the amendments in Update 2017-12. For public business entities that already have adopted the amendments in Update 2017-12, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities that already have adopted the amendments in Update 2017-12, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted in any interim period upon issuance of this Update if an entity already has adopted Update 2017-12. The Company does not anticipate the adoption of the standard will have a significant impact on the Company’s financial position or results of operations. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, which addressed issues lessors sometimes encounter. Specifically addressed in this Update were issues related to (1) determining the fair value of the underlying asset by the lessor that are not manufacturers or dealers (generally financial institutions and captive finance companies), and (2) lessors that are depository and lending institutions should classify principal and payments received under sales-type and direct financing leases within investing activities in the cash flow statement. The ASU also exempts both lessees and lessors from having to provide the interim disclosures required by ASC 250-10-50-3 in the fiscal year in which a company adopts the new leases standard. The amendments addressing the two lessor accounting issues are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, the effective date is for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, w hich affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. Topic 326, Financial Instruments - Credit Losses amendments are effective for SEC registrants for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other public business entities, the effective date is for fiscal years beginning after December 15, 2020, and for all other entities, the effective date is for fiscal years beginning after December 15, 2021. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments - Credit Losses , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. Topic 815, Derivatives and Hedging amendments are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. For entities that have adopted the amendments in Update 2017-12, the effective date is as of the beginning of the first annual period beginning after the issuance of this Update. Topic 825, Financial Instruments amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ? Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . This Update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Furthermore, the ASU provides a one-year deferral of the effective dates of the ASUs on derivatives and hedging for companies that are not public business entities.The Company is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326 , which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10-3. The election must be applied on an instrument-by-instrument basis and is not available for either available-for-sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings. For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-05 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted once ASU 2016-13 has been adopted. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . The Update defers the effective date of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.This Update is not expected to have a significant impact on the Company’s financial statements. In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections, Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates. This ASU amends various SEC paragraphs pursuant to the issuance of SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification , and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization . Other miscellaneous updates to agree to the electronic Code of Federal Regulations also have been incorporated. In November 2019, the FASB issued ASU 2019-08, Compensation ‒ Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606), which requires entities to measure and classify sharebased payments to a customer, in accordance with the guidance in ASC 718, Compensation ‒ Stock Compensation . The amendments in that Update expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees and, in doing so, superseded guidance in Subtopic 505-50, Equity ‒ Equity-Based Payments to Non-Employees . The amount that would be recorded as a reduction in revenue would be measured based on the grant date fair value of the sharebased payment, in accordance with Topic 718. The grant date is the date at which a supplier and customer reach a mutual understanding of the award’s key terms and conditions. The award’s classification and subsequent measurement would be subject to ASC 718 unless the award is modified or the grantee is no longer a customer. For entities that have not yet adopted the amendments in Update 2018-07, the amendments in this Update are effective for (1) public business entities in fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and (2) other than public business entities in fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. For entities that have adopted the amendments in Update 2018-07, the amendments in this Update are effective in fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. An entity may early adopt the amendments in this Update, but not before it adopts the amendments in Update 2018-07. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) . The Update defers the effective dates of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This Update also amends the mandatory effective date for the elimination of Step 2 from the goodwill impairment test under ASU No. 2017-04, Intangibles ‒ Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Goodwill) , to align with those used for credit losses. Furthermore, the ASU provides a one-year deferral of the effective dates of the ASUs on derivatives and hedging and leases for companies that are not public business entities. The Company qualifies as a smaller reporting company and does not expect to early adopt these ASUs. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted earnings per share | Year Ended September 30, 2019 2018 2017 (Dollars in Thousands Except Per Share Data) Basic Diluted Basic Diluted Basic Diluted Net income $ 9,530 $ 9,530 $ 7,064 $ 7,064 $ 2,778 $ 2,778 Weighted average common shares outstanding 8,777,794 8,777,794 8,855,938 8,855,938 8,316,638 8,316,638 Effect of CSEs — 158,083 — 204,175 — 357,871 Adjusted weighted average common shares used in earnings per share computation 8,777,794 8,935,877 8,855,938 9,060,113 8,316,638 8,674,509 Earnings per share $ 1.09 $ 1.07 $ 0.80 $ 0.78 $ 0.33 $ 0.32 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Schedule of changes in accumulated other comprehensive (loss) income | Year Ended September 30, 2019 2019 2019 2018 2018 2018 (Dollars in Thousands) Total Total accumulated accumulated Unrealized gain Unrealized gain (loss) other Unrealized gain Unrealized gain (loss) other (loss) on AFS on interest rate swaps comprehensive (loss) on AFS on interest rate comprehensive securities (a) (a) income (loss) securities (a) swaps (a) loss Beginning Balance $ (8,320) $ 166 $ (8,154) $ (1,091) $ 331 $ (760) Other comprehensive (loss) income before reclassification 17,278 (7,072) 10,206 (7,171) 473 (6,698) Amount reclassified from accumulated other comprehensive income (835) — (835) 245 (638) (393) Total other comprehensive income (loss) 16,443 (7,072) 9,371 (6,926) (165) (7,091) Reclassification due to adoption of ASU 2016-01 (25) — (25) (303) — (303) Ending Balance $ 8,098 $ (6,906) $ 1,192 $ (8,320) $ 166 $ (8,154) Year Ended September 30, 2017 2017 2017 (Dollars in Thousands) Total accumulated Unrealized gain Unrealized gain (loss) other (loss) on AFS on interest rate swaps comprehensive securities (a) (a) gain (loss) Beginning Balance $ 931 $ (133) $ 798 Other comprehensive (loss) income before reclassification (1,867) 464 (1,403) Amount reclassified from accumulated other comprehensive income (155) — (155) Total other comprehensive income (loss) (2,022) 464 (1,558) Ending Balance $ (1,091) $ 331 $ (760) (a) All amounts are net of tax. Amounts in parentheses indicate debits. |
Schedule of amounts reclassified out of each component of accumulated other comprehensive (loss) income | Year Ended September 30, 2019 2019 2019 2018 2018 2018 (Dollars in Thousands) Securities Swaps Total Securities Swaps Total Unrealized gain (losses) $ 1,057 (1) $ — (2) $ 1,057 $ (310) (1) $ 808 (2) $ 498 Income taxes (222) (3) — (3) (222) 65 (3) (170) (3) (105) $ 835 $ — $ 835 $ (245) $ 638 $ 393 Year Ended September 30, 2017 2017 2017 (Dollars in Thousands) Securities Swaps Total Unrealized gain (losses) $ 235 (1) $ — (2) $ 235 Income taxes (80) (3) — (3) (80) |
INVESTMENT AND MORTGAGE-BACKE_2
INVESTMENT AND MORTGAGE-BACKED SECURITIES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | |
Schedule of amortized cost and fair value of securities, with gross unrealized gains and losses | September 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 24,960 $ 3 $ (98) $ 24,865 State and political subdivisions 47,909 484 (747) 47,646 Mortgage-backed securities - U.S. government agencies 362,342 8,836 (406) 370,772 Corporate debt securities 67,360 2,217 (38) 69,539 Total debt securities available for sale $ 502,571 $ 11,540 $ (1,289) $ 512,822 Securities Held to Maturity: U.S. government and agency obligations $ 43,349 $ 181 $ (188) $ 43,342 State and political subdivisions 20,474 645 — 21,119 Mortgage-backed securities - U.S. government agencies 4,812 238 (4) 5,046 Total securities held to maturity $ 68,635 $ 1,064 $ (192) $ 69,507 The amortized cost and fair value of equity securities: September 30, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Equity securities FHLMC preferred stock $ 6 $ 89 $ — $ 95 Total equity securities $ 6 $ 89 $ — $ 95 September 30, 2018 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 25,562 $ — $ (1,391) $ 24,171 State and political subdivisions 22,078 — (542) 21,536 Mortgage-backed securities - U.S. government agencies 193,451 77 (6,168) 187,360 Corporate debt securities 75,622 (2,539) 73,083 Total debt securities 316,713 77 (10,640) 306,150 FHLMC preferred stock 6 31 — 37 Total securities available for sale $ 316,719 $ 108 $ (10,640) $ 306,187 Securities Held to Maturity: U.S. government and agency obligations $ 33,500 $ 85 $ (3,311) $ 30,274 State and political subdivisions 20,574 2 (696) 19,880 Mortgage-backed securities - U.S. government agencies 5,778 148 (153) 5,773 Total securities held to maturity $ 59,852 $ 235 $ (4,160) $ 55,927 |
Schedule of gross unrealized losses and related fair values of investment securities | The following table shows the gross unrealized losses and related fair values of the Company’s investment securities, aggregated by investment category and the length of time that individual securities had been in a continuous loss position at September 30, 2018: Less than 12 months More than 12 months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ (3) $ 6,997 $ (95) $ 3,866 $ (98) $ 10,863 State and political subdivisions (4) 890 (743) 23,784 (747) 24,674 Mortgage-backed securities -U.S. government agencies (86) 50,057 (320) 37,056 (406) 87,113 Corporate debt securities (13) 1,989 (25) 3,014 (38) 5,003 Total securities available for sale $ (106) $ 59,933 $ (1,183) $ 67,720 $ (1,289) $ 127,653 Securities Held to Maturity: U.S. government and agency obligations $ (188) $ 14,999 $ — $ — $ (188) $ 14,999 Mortgage-backed securities -U.S.s government agencies (4) 798 — — (4) 798 State and political subdivisions — — — — — — Total securities held to maturity $ (192) $ 15,797 $ — $ — $ (192) $ 15,797 Total $ (298) $ 75,730 $ (1,183) $ 67,720 $ (1,481) $ 143,450 The following table shows the gross unrealized losses and related fair values of the investment securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at September 30, 2017: Less than 12 months More than 12 months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in Thousands) Securities Available for Sale: US government and agency obligations $ (89) $ 4,479 $ (1,302) $ 19,692 $ (1,391) $ 24,171 State and political subdivisions (542) 21,536 (542) 21,536 Mortgage-backed securities - US government agencies (1,821) 92,851 (4,347) 86,268 (6,168) 179,119 Corporate debt securities (1,719) 58,753 (820) 14,330 (2,539) 73,083 Total securities available for sale $ (4,171) $ 177,619 $ (6,469) $ 120,290 $ (10,640) $ 297,909 Securities Held to Maturity: U.S. government and agency obligations $ — $ — $ (3,311) $ 27,190 $ (3,311) $ 27,190 Mortgage-backed securities - US government agencies (106) 2,630 (47) 930 (153) 3,560 State and political subdivisions (234) 11,238 (462) 6,618 (696) 17,856 Total securities held to maturity $ (340) $ 13,868 $ (3,820) $ 34,738 $ (4,160) $ 48,606 Total $ (4,511) $ 191,487 $ (10,289) $ 155,028 $ (14,800) $ 346,515 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | September 30, 2019 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in Thousands) Due within one year $ — $ — $ — $ — Due after one through five years 2,284 2,306 17,547 17,748 Due after five through ten years 24,150 24,669 49,813 51,791 Due after ten years 37,389 37,486 72,869 72,511 Total $ 63,823 $ 64,461 $ 140,229 $ 142,050 |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
LOANS RECEIVABLE | |
Schedule of loans receivable | September 30, 2019 2018 (Dollars in Thousands) One-to-four family residential $ 268,780 $ 324,865 Multi-family residential 30,582 34,355 Commercial real estate 128,521 119,511 Construction and land development 253,368 160,228 Loans to financial institutions 6,000 6,000 Commercial business 19,630 17,792 Leases 518 1,687 Consumer 834 953 Total loans 708,233 665,391 Undisbursed portion of loans-in-process (114,528) (54,474) Deferred loan fees (2,856) (2,818) Allowance for loan losses (5,393) (5,167) Net loans $ 585,456 $ 602,932 |
Schedule of loans individually and collectively evaluated for impairment by loan segment | The following table summarizes the loans individually and collectively evaluated for impairment by loan segment at September 30, 2019: One- to Loans to four- Multi-family Commercial Construction and financial Commercial family residential residential real estate land development institutions business Leases Consumer Total (Dollars in Thousands) Individually evaluated for impairment $ 4,827 $ — $ 1,965 $ 8,750 $ — $ — $ — $ — $ 15,542 Collectively evaluated for impairment 263,953 30,582 126,556 244,618 6,000 19,630 518 834 692,691 Total loans $ 268,780 $ 30,582 $ 128,521 $ 253,368 $ 6,000 $ 19,630 $ 518 $ 834 $ 708,233 The following table summarizes the loans individually and collectively evaluated for impairment by loan segment at September 30, 2018: One- to Loans to four- Multi-family Commercial Construction and financial Commercial family residential residential real estate land development institutions business Leases Consumer Total (Dollars in Thousands) Individually evaluated for impairment $ 5,081 $ 298 $ 1,919 $ 8,750 $ — $ — $ — $ — $ 16,048 Collectively evaluated for impairment 319,784 34,057 117,592 151,478 6,000 17,792 1,687 953 $ 649,343 Total loans $ 324,865 $ 34,355 $ 119,511 $ 160,228 $ 6,000 $ 17,792 $ 1,687 $ 953 $ 665,391 |
Schedule of impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary | The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2019: Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ — $ — $ 4,827 $ 4,827 $ 5,179 Multi-family residential — — — — — Commercial real estate — — 1,965 1,965 2,125 Construction and land development — — 8,750 8,750 11,131 Total $ — $ — $ 15,542 $ 15,542 $ 18,435 The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2018: Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ — $ — $ 5,081 $ 5,081 $ 5,432 Multi-family residential — — 298 298 298 Commercial real estate — — 1,919 1,919 2,057 Construction and land development — — 8,750 8,750 11,131 Total $ — $ — $ 16,048 $ 16,048 $ 18,918 |
Schedule of average investment in impaired loans and related interest income recognized | September 30, 2019 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 4,685 $ 77 $ 22 Multi-family residential 145 10 — Commercial real estate 2,139 36 4 Construction and land development 8,751 — — Total $ 15,720 $ 123 $ 26 September 30, 2018 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 5,741 $ 24 $ 59 Multi-family residential 306 21 — Commercial real estate 2,557 40 7 Construction and land development 8,743 — — Total $ 17,347 $ 85 $ 66 September 30, 2017 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 6,096 $ 89 $ 91 Multi-family residential 321 23 — Commercial real estate 2,459 49 12 Construction and land development 9,163 — — Consumer 5 — — Total $ 18,044 $ 161 $ 103 |
Schedule of classes of the loan portfolio in which a formal risk weighting system is utilized | September 30, 2019 Special Total Pass Mention Substandard Doubtful Loans (Dollars in Thousands) One-to-four residential $ 262,164 $ 1,789 $ 4,827 $ — $ 268,780 Multi-family residential 30,582 — — — 30,582 Commercial real estate 122,838 3,718 1,965 — 128,521 Construction and land development 244,618 — 8,750 — 253,368 Loans to financial institutions 6,000 — — — 6,000 Commercial business 19,630 — — — 19,630 Total $ 685,832 $ 5,507 $ 15,542 $ — $ 706,881 September 30, 2018 Special Total Pass Mention Substandard Doubtful Loans (Dollars in Thousands) One-to-four residential $ 317,033 $ 2,751 $ 5,081 $ — $ 324,865 Multi-family residential 34,057 — 298 — 34,355 Commercial real estate 115,670 1,922 1,919 — 119,511 Construction and land development 151,478 — 8,750 — 160,228 Loans to financial institutions 6,000 — — — 6,000 Commercial business 17,792 — — — 17,792 Total $ 642,030 $ 4,673 $ 16,048 $ — $ 662,751 |
Schedule of loans in which a formal risk rating system is not utilized, but loans are segregated between performing and non-performing based primarily on delinquency status | September 30, 2019 Non- Total Performing Performing Loans (Dollars in Thousands) One-to-four family residential $ 265,068 $ 3,712 $ 268,780 Leases 518 — 518 Consumer 834 — 834 Total $ 266,420 $ 3,712 $ 270,132 September 30, 2018 Non- Total Performing Performing Loans (Dollars in Thousands) One-to-four family residential $ 321,853 $ 3,012 $ 324,865 Leases 1,687 — 1,687 Consumer 953 — 953 Total $ 324,493 $ 3,012 $ 327,505 |
Schedule of loan categories of the loan portfolio summarized by the aging categories of performing and delinquent loans and nonaccrual loans | September 30, 2019 90 Days+ 30‑89 Days 90 Days + Total Total Non- Past Due Current Past Due Past Due Past Due Loans Accrual and Accruing (Dollars in Thousands) One-to-four family residential $ 264,784 $ 750 $ 3,246 $ 3,996 $ 268,780 $ 3,712 $ — Multi-family residential 30,582 — — — 30,582 — — Commercial real estate 127,104 — 1,417 1,417 128,521 1,473 — Construction and land development 244,618 — 8,750 8,750 253,368 8,750 — Commercial business 19,630 — — — 19,630 — — Loans to financial institutions 6,000 — — — 6,000 — — Leases 518 — — — 518 — Consumer 739 95 — 95 834 — — Total Loans $ 693,975 $ 845 $ 13,413 $ 14,258 $ 708,233 $ 13,935 $ — September 30, 2018 90 Days+ 30‑89 Days 90 Days + Total Total Non- Past Due Current Past Due Past Due Past Due Loans Accrual and Accruing (Dollars in Thousands) One-to-four family residential $ 321,749 $ 1,037 $ 2,079 $ 3,116 $ 324,865 $ 3,012 $ — Multi-family residential 34,355 — — — $ 34,355 — — Commercial real estate 117,335 722 1,454 2,176 $ 119,511 1,627 — Construction and land development 151,478 — 8,750 8,750 $ 160,228 8,750 — Commercial business 17,792 — — — $ 17,792 — — Loans to financial institutions 6,000 — — — $ 6,000 — — Leases 1,687 — — — $ 1,687 — — Consumer 837 116 — 116 953 — — Total Loans $ 651,233 $ 1,875 $ 12,283 $ 14,158 $ 665,391 $ 13,389 $ — |
Schedule of primary segments of the allowance for loan losses, segmented into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment. | September 30, 2019 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2018 $ 1,325 $ 347 $ 1,154 $ 1,554 $ 187 $ 64 $ 18 $ 17 $ 501 $ 5,167 Charge-offs (7) — — — — — (31) — — (38) Recoveries 164 — — — — — — — — 164 Provision (480) (32) 103 480 19 (1) 18 (4) (3) 100 ALLL balance at September 30, 2019 $ 1,002 $ 315 $ 1,257 $ 2,034 $ 206 $ 63 $ 5 $ 13 $ 498 $ 5,393 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,002 315 1,257 2,034 206 63 5 13 498 5,393 September 30, 2018 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2017 $ 1,241 $ 205 $ 1,201 $ 1,358 $ 4 $ — $ 23 $ 24 $ 410 $ 4,466 Charge-offs (114) — — (12) — — — (11) — (137) Recoveries 28 — — — — — — — — 28 Provision 170 142 (47) 208 183 64 (5) 4 91 810 ALLL balance at September 30, 2018 $ 1,325 $ 347 $ 1,154 $ 1,554 $ 187 $ 64 $ 18 $ 17 $ 501 $ 5,167 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,325 347 1,154 1,554 187 64 18 17 501 5,167 September 30, 2017 One- to Multi- Construction four-family family Commercial and land Commercial residential residential real estate development business Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2016 $ 1,627 $ 137 $ 859 $ 316 $ 1 $ 21 $ 10 $ 298 $ 3,269 Charge-offs (140) — — (1,819) — — (16) — (1,975) Recoveries 182 — — — — — — — 182 Provision (428) 68 342 2,861 3 2 30 112 2,990 ALLL balance at September 30, 2017 $ 1,241 $ 205 $ 1,201 $ 1,358 $ 4 $ 23 $ 24 $ 410 $ 4,466 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,241 205 1,201 1,358 4 23 24 410 4,466 |
OFFICE PROPERTIES AND EQUIPME_2
OFFICE PROPERTIES AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
OFFICE PROPERTIES AND EQUIPMENT | |
Schedule of office properties and equipment | September 30, 2019 2018 (Dollars in Thousands) Land $ 1,437 $ 1,437 Buildings and improvements 7,449 7,449 Furniture and equipment 3,639 3,417 Total 12,525 12,303 Accumulated depreciation (5,319) (4,864) Total office properties and equipment, net of accumulated depreciation $ 7,206 $ 7,439 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
DEPOSITS | |
Schedule of major classifications of deposits | September 30, 2019 2018 Amount Percent Amount Percent (Dollars in Thousands) Non-interest-bearing checking accounts $ 16,949 2.2 % $ 13,620 1.7 % Interest-bearing checking accounts 58,647 7.9 % 49,209 6.3 % Money market deposit accounts 75,766 10.2 % 66,120 8.4 % Passbook, club and statement savings 80,899 10.9 % 91,489 11.7 % Certificates maturing in six months or less 294,343 39.5 % 301,184 38.4 % Certificates maturing in more than six months 218,840 29.3 % 262,636 33.5 % Total $ 745,444 100.0 % $ 784,258 100.0 % |
Schedule of maturities of certificate accounts | September 30, 2019 (Dollars in Thousands) One year or less $ 405,670 One through two years 30,682 Two through three years 32,113 Three through four years 27,138 Four through five years 17,580 Total $ 513,183 |
Schedule of interest expense on deposits | Year Ended September 30, 2019 2018 2017 (Dollars in Thousands) Checking and money market deposit accounts $ 899 $ 247 $ 192 Passbook, club and statement savings accounts 124 66 55 Certificate accounts 12,137 7,073 3,683 Total $ 13,160 $ 7,386 $ 3,930 |
ADVANCES FROM FEDERAL HOME LO_3
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | |
Schedule of short-term borrowings from the FHLB of Pittsburgh | (Dollar Amounts in Thousands) 2019 2018 Balance at year-end $ 90,000 $ 10,000 Average balance outstanding $ 31,158 $ 18,933 Maximum month-end balance $ 90,000 $ 30,200 Weight-average rate at year-end 2.32 % 2.31 % Weight-average rate during the year 2.53 % 1.81 % |
ADVANCES FROM FEDERAL HOME LO_4
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | |
Schedule of collateral agreement with the FHLB | Lomg-term FHLB advances: Maturity range Weighted average Stated interest rate range Description from to interest rate from to 2019 2018 (Dollars in Thousands) Fixed Rate - Amortizing 1‑Oct‑19 30‑Sep‑20 1.53 % 1.53 % 1.53 % $ 236 $ 1,639 Fixed Rate - Amortizing 1‑Oct‑20 30‑Sep‑21 2.70 % 1.94 % 2.83 % 14,354 23,288 Fixed Rate - Amortizing 1‑Oct‑21 30‑Sep‑22 2.81 % 1.99 % 3.05 % 8,729 11,848 Fixed Rate - Amortizing 1‑Oct‑22 30‑Sep‑23 2.88 % 1.94 % 3.11 % 6,931 8,550 Total 2.76 % $ 30,250 $ 45,325 Fixed Rate - Advances 1‑Oct‑18 30‑Sep‑19 1.75 % 1.40 % 2.66 % $ — $ 18,528 Fixed Rate - Advances 1‑Oct‑19 30‑Sep‑20 2.62 % 1.38 % 3.06 % 12,304 12,413 Fixed Rate - Advances 1‑Oct‑20 30‑Sep‑21 2.37 % 1.42 % 2.92 % 18,017 3,037 Fixed Rate - Advances 1‑Oct‑21 30‑Sep‑22 2.31 % 1.94 % 3.23 % 63,336 23,380 Fixed Rate - Advances 1‑Oct‑22 30‑Sep‑23 2.52 % 2.00 % 3.15 % 94,999 37,000 Fixed Rate - Advances 1‑Oct‑23 30‑Sep‑24 2.88 % 2.38 % 3.20 % 67,998 5,000 Total 2.56 % $ 256,654 $ 99,358 2.58 % Total $ 286,904 $ 144,683 |
Schedule of advances from the FHLB of Pittsburgh with coupon rates | Weighted Average Maturity in Fiscal Amount Coupon Rate (Dollars in Thousands) 2020 $ 26,714 2.59 % 2021 28,078 2.44 % 2022 67,328 2.32 % 2023 96,785 2.51 % 2024 67,999 2.88 % $ 286,904 2.58 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
INCOME TAXES | |
Schedule of provision for income taxes | Current: Federal expense $ 2,133 $ 2,429 $ 801 State expense 205 — — Total current taxes 2,338 2,429 801 Change in corporate tax rate — 1,756 — Deferred income tax expense (benefit) (188) (484) 140 Total income tax provision $ 2,150 $ 3,701 $ 941 |
Schedule of deferred income taxes | September 30, 2019 2018 (Dollars in Thousands) Deferred tax assets: Allowance for loan losses $ 1,488 $ 1,445 Nonaccrual interest 487 312 Accrued vacation 7 29 Capital loss carryforward 121 356 Split dollar life insurance 9 10 Post-retirement benefits 76 85 Unrealized losses on available for sale securities — 2,212 Unrealized losses on interest rate swaps 1,836 — Deferred compensation 809 838 Goodwill 69 80 Other 64 55 Employee benefit plans 216 239 Total deferred tax assets 5,182 5,661 Valuation allowance (121) (356) Total deferred tax assets, net of valuation allowance 5,061 5,305 Deferred tax liabilities: Property 141 179 Realized gain on equity securities 19 — Unrealized gains on available for sale securities 2,153 — Unrealized gains on interest rate swaps — 44 Purchase accounting adjustments 215 59 Deferred loan fees 175 368 Total deferred tax liabilities 2,703 650 Net deferred tax assets $ 2,358 $ 4,655 |
Schedule of income tax expense computed at the statutory federal corporate tax rate | Year Ended September 30, 2019 2018 2017 Percentage Percentage Percentage of Pretax of Pretax of Pretax Amount Income Amount Income Amount Income (Loss) (Dollars in Thousands) Tax at statutory rate $ 2,453 21.0 % $ 2,611 24.3 % $ 1,265 34.0 % Adjustments resulting from: State tax expense 162 1.3 — — — — Change in corporate tax rate — — 1,756 16.2 — — Tax exempt income (313) (2.7) (77) (0.7) (109) (2.9) Nondeductible merger expenses — — — — 80 2.1 Income from bank owned life insurance (135) (1.1) (155) (1.4) (230) (6.2) Employee benefit plans (27) (0.2) (134) (1.2) (39) (1.1) Other 10 0.1 (300) (2.9) (26) (0.6) Income tax expense $ 2,150 18.4 % $ 3,701 34.3 % $ 941 25.3 % |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
REGULATORY CAPITAL REQUIREMENTS | |
Schedule of Company's and the Bank's actual capital amounts and ratios | To Be Well Capitalized Under Prompt Required for Capital Corrective Action Actual Adequacy Purposes Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) September 30, 2019: Tier 1 capital (to average assets) Company $ 131,859 10.89 % N/A N/A N/A N/A Bank 129,486 10.49 $ 49,386 4.0 % $ 61,732 5.0 % Tier 1 Common (to risk-weighted assets) Company 131,859 18.43 N/A N/A N/A N/A Bank 129,486 18.10 32,190 4.5 46,497 6.5 Tier 1 capital (to risk-weighted assets) Company 131,859 18.43 N/A N/A N/A N/A Bank 129,486 18.10 28,613 6.0 42,920 8.0 Total capital (to risk-weighted assets) Company 137,842 19.27 N/A N/A N/A N/A Bank 135,469 18.94 57,227 8.0 71,534 10.0 September 30, 2018: Tier 1 capital (to average assets) Company $ 129,890 12.51 % N/A N/A N/A N/A Bank 123,199 11.86 $ 41,542 4.0 % $ 51,928 5.0 % Tier 1 Common (to risk-weighted assets) Company 129,890 19.74 N/A N/A N/A N/A Bank 123,199 18.73 29,603 4.5 42,759 6.5 Tier 1 capital (to risk-weighted assets) Company 129,890 19.74 N/A N/A N/A N/A Bank 123,199 18.73 26,313 6.0 39,470 8.0 Total capital (to risk-weighted assets) Company 135,374 20.58 N/A N/A N/A N/A Bank 128,683 19.56 52,627 8.0 65,783 10.0 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
EMPLOYEE BENEFITS | |
Schedule of multiemployer plans | Pentegra Defined Legal Name of Plan Financial Institutions Plan Employer Identification Number 13-5645888 The Company's Contribution for the year ended September 30, 2019 $ 632,000 Are Company's Contributions more than 5% of total contributions? No Funded Status 85.86 % |
Schedule of summary of the non-vested stock award activity | Year Ended September 30, 2019 Number of Weighted Average Shares Grant Date Fair Value Non-vested stock awards at beginning of year 116,916 $ 14.36 Issued — — Forfeited (1,812) 12.43 Vested (46,124) 13.43 Non-vested stock awards at the end of the period 68,980 $ 15.05 Year Ended September 30, 2018 Number of Weighted Average Shares Grant Date Fair Value Nonvested stock awards at beginning of year 142,594 $ 12.79 Issued 26,500 18.46 Forfeited (5,243) 11.91 Vested (46,935) 12.16 Nonvested stock awards at the end of the period 116,916 $ 14.36 Year Ended September 30, 2017 Number of Weighted Average Shares Grant Date Fair Value Nonvested stock awards at beginning of year 172,788 $ 12.03 Issued 17,128 17.43 Forfeited (1,467) 10.47 Vested (45,855) 11.72 Nonvested stock awards at the end of the period 142,594 $ 12.79 |
Schedule of summary of the status of the company' stock options under the stock option plan | Year Ended September 30, 2019 Number of Weighted Average Shares Exercise Price Options outstanding at beginning of year 869,026 $ 13.41 Granted 39,702 18.16 Exercised (109,694) 11.91 Forfeited (6,000) 12.23 Outstanding at the end of the period 793,034 13.86 Exercisable at the end of the period 489,288 $ 12.21 Year Ended September 30, 2018 Number of Weighted Average Shares Exercise Price Options outstanding at beginning of year 922,564 $ 12.04 Granted 177,500 18.46 Exercised (216,796) 11.76 Forfeited (14,242) 11.90 Outstanding at the end of the period 869,026 13.41 Exercisable at the end of the period 451,899 $ 11.45 Year Ended September 30, 2017 Number of Weighted Average Shares Exercise Price Options outstanding at beginning of year 921,909 $ 11.70 Granted 47,828 17.92 Exercised (43,890) 11.41 Forfeited (3,283) 11.84 Outstanding at the end of the period 922,564 12.04 Exercisable at the end of the period 554,802 $ 11.47 |
INTEREST RATE SWAP AGREEMENTS (
INTEREST RATE SWAP AGREEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
INTEREST RATE SWAP AGREEMENTS | |
Schedule of interest rate swap agreements | 2019 Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Gain (Loss) (Dollars in thousands) FHLB Advance $ 10,000 2.70 % 2.70 % 1 Mth Libor 10-Apr-25 10-Apr-25 $ (719) State and political subdivisions 21,570 3.06 % 3.07 % 3 Mth Libor 1-Feb-27 1-May-28 (2,502) Commercial loans 17,339 4.10 % 5.74 % 1 Mth Libor +225 to 276 bp 13-Jun-25 1-Aug-26 — 30 day wholesale funding 65,000 1.94 % 2.51 % 1 Mth Libor 15-Feb-24 12-Jun-26 (1,415) 90 day wholesale funding 135,000 2.51 % 2.78 % 3 Mth Libor 11-Jan-24 27-Mar-24 (6,605) $ (11,241) 2018 Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Gain (Loss) (Dollars in t housands) FHLB Advance $ 10,000 2.70 % 2.70 % 1 Mth Libor 10-Apr-25 10-Apr-25 $ 129 State and political subdivisions 21,570 3.06 % 3.07 % 3 Mth Libor 1-Feb-27 1-May-28 82 Commercial loans 9,400 4.10 % 5.74 % 1 Mth Libor +250 to 276 bp 13-Jun-25 1-Aug-26 — $ 211 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
FAIR VALUE MEASUREMENT | |
Schedule of assets measured at fair value on recurring basis | Those assets as of September 30, 2019 which are to be measured at fair value on a recurring basis are as follows: Category Used for Fair Value Measurement Level 1 Level 2 Level 3 Total (Dollars in Thousands) Assets: Securities available for sale: U.S. Government and agency obligations $ — $ 24,865 $ — $ 24,865 State and political subdivisions — 47,646 — 47,646 Mortgage-backed securities - U.S. Government agencies — 370,772 — 370,772 Corporate bonds — 69,539 — 69,539 Equity securities 95 — — 95 Total $ 95 $ 512,822 $ — $ 512,917 Liabilities: Interest rate swap contracts $ — $ 11,241 $ — $ 11,241 Total $ — $ 11,241 $ — $ 11,241 Those assets as of September 30, 2018 which are measured at fair value on a recurring basis are as follows: Category Used for Fair Value Measurement Level 1 Level 2 Level 3 Total (Dollars in Thousands) Assets: Securities available for sale: U.S. Government and agency obligations $ — $ 24,171 $ — $ 24,171 State and political subdivisions — 21,536 — 21,536 Mortgage-backed securities - U.S. Government agencies — 187,360 — 187,360 Corporate bonds — 73,083 — 73,083 FHLMC preferred stock 37 — — 37 Interest rate swap contracts — 211 — 211 Total $ 37 $ 306,361 $ — $ 306,398 |
Schedule of summary of non-recurring fair value measurements | At September 30, 2019 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 15,542 $ 15,542 Real estate owned — — 348 348 Total $ — $ — $ 15,890 $ 15,890 At September 30, 2018 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 16,048 $ 16,048 Real estate owned — — 1,026 1,026 Total $ — $ — $ 17,074 $ 17,074 |
Schedule of nonrecurring fair value measurements categorized within level 3 of the fair value hierarchy | At September 30, 2019 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Impaired loans $ 15,542 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 6% to 9% discount / 7% Real estate owned $ 348 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 22% discount At September 30, 2018 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Impaired loans $ 16,048 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 6% to 8% discount / 6% Real estate owned $ 1,026 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 18% discount (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various Level 3 inputs, which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. |
Schedule of the estimated fair value amounts | Fair Value Measurements at Carrying Fair September 30, 2019 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Cash and cash equivalents $ 47,968 $ 47,968 $ 47,968 $ — $ — Certificates of deposit 2,351 2,351 2,351 — — Investment and mortgage-backed securities available for sale 512,822 512,822 — 512,822 — Equity securities 95 95 95 Investment and mortgage-backed securities held to maturity 68,635 69,507 — 69,507 — Loans receivable, net 585,456 585,476 — — 585,476 Accrued interest receivable 4,549 4,549 4,549 — — Restricted stock 16,406 16,406 16,406 — — Bank owned life insurance 31,841 31,841 31,841 — — Liabilities: Checking accounts 75,596 75,596 75,596 — — Money market deposit accounts 75,766 75,766 75,766 — — Passbook, club and statement savings accounts 80,899 80,899 80,899 — — Certificates of deposit 513,183 529,099 — — 529,099 Accrued interest payable 4,328 4,328 4,328 — — Advances from FHLB -short-term 90,000 90,000 90,000 — Advances from FHLB -long-term 286,904 293,839 — — 293,839 Advances from borrowers for taxes and insurance 2,332 2,332 2,332 — — Interest rate swap contracts 11,241 11,241 — 11,241 — Carrying Fair September 30, 2018 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Cash and cash equivalents $ 48,171 $ 48,171 $ 48,171 $ — $ — Certificates of deposit 1,604 1,604 1,604 — — Investment and mortgage-backed securities available for sale 306,187 306,187 37 306,150 — Investment and mortgage-backed securities held to maturity 59,852 55,927 — 55,927 — Loans receivable, net 602,932 598,596 — — 598,596 Accrued interest receivable 3,825 3,825 3,825 — — Restricted stock 7,585 7,585 7,585 — — Interest rate swap contracts 225 225 — 225 — Bank owned life insurance 28,691 28,691 28,691 — — Liabilities: Checking accounts 62,886 62,886 62,886 — — Money market deposit accounts 60,686 60,686 60,686 — — Passbook, club and statement savings accounts 96,866 96,866 96,866 — — Certificates of deposit 563,820 569,375 — — 569,375 Accrued interest payable 3,232 3,232 3,232 — — Advances from FHLB -short-term 10,000 10,000 10,000 — — Advances from FHLB -long-term 144,683 141,116 — — 141,116 Advances from borrowers for taxes and insurance 2,083 2,083 2,083 — — |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of goodwill and intangible assets are related to the acquisition of Polonia Bancorp | Balance Balance October 1, Additions/ September 30, Amortization 2018 Adjustments Amortization 2019 Period (Dollars in Thousands) Goodwill $ 6,102 $ — $ — $ 6,102 Core deposit intangible 571 — (123) 448 10 years $ 6,673 $ — $ (123) $ 6,550 |
Schedule of future fiscal periods amortization expense for core deposit intangible | (Dollars in Thousands) 2020 $ 108 2021 93 2022 78 2023 64 2024 49 Thereafter 56 $ 448 |
PRUDENTIAL BANCORP, INC. (PAR_2
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) | |
Schedule of statement of financial condition | STATEMENT OF FINANCIAL CONDITION September 30, 2019 2018 (Dollars in Thousands) Assets: Cash $ 1,004 $ 5,435 Investment in Bank 137,238 121,718 Other assets 1,369 1,256 Total assets $ 139,611 $ 128,409 Stockholders' equity: Preferred stock — — Common stock 108 108 Additional paid-in-capital 118,384 118,345 Treasury stock (29,698) (27,744) Retained earnings 49,625 45,854 Accumulated other comprehensive income (loss) 1,192 (8,154) Total stockholders' equity $ 139,611 $ 128,409 |
Schedule of income statement | INCOME STATEMENT For the year ended September 30, 2019 2018 2017 (Dollars in Thousands) Interest on ESOP loan $ — $ — $ 59 Equity in the undistributed earnings of the Bank 9,954 7,465 3,255 Other income — — — Total income 9,954 7,465 3,314 Professional services 168 168 369 Other expense 369 362 413 Total expense 537 530 782 Income before income taxes 9,417 6,936 2,532 Income tax benefit (113) (128) (246) Net income $ 9,530 $ 7,064 $ 2,778 |
Schedule of cash flows | CASH FLOWS For the year ended September 30, 2019 2018 2017 (Dollars in Thousands) Operating activities: Net income $ 9,530 $ 7,064 $ 2,778 Other, net (115) (108) 46 Equity in the undistributed earnings of the Bank (9,954) (7,465) (3,255) Net cash used in operating activities (539) (509) (431) Investing activities: Repayments received on ESOP loan — — 5,277 Acquisitions, net of cash — — 3,966 Net cash provided by investing activities — — 9,243 Financing activities: Purchase of treasury stock (3,108) (2,548) (4,526) Cash dividends paid (5,784) (6,300) (1,035) Dividends from the Bank 5,000 5,000 — Net cash used in financing activities (3,892) (3,848) (5,561) Net (decrease) increase in cash and cash equivalents (4,431) (4,357) 3,251 Cash and cash equivalents, beginning of year 5,435 9,792 6,541 Cash and cash equivalents, end of year $ 1,004 $ 5,435 $ 9,792 |
CONSOLIDATED QUARTERLY FINANC_2
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) | |
Schedule of unaudited quarterly financial information | September 30, 2019 September 30, 2018 1st 2nd 3rd 4th 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr (Dollars in Thousands, Except Per Share Data) Interest income $ 10,001 $ 11,134 $ 11,273 $ 11,631 $ 8,036 $ 8,355 $ 8,931 $ 9,529 Interest expense 3,986 4,811 5,058 5,434 1,900 2,127 2,709 3,401 Net interest income 6,015 6,323 6,215 6,197 6,136 6,228 6,222 6,128 Provision for loan losses 0 0 0 100 210 150 325 125 Net interest income after provision for loan losses 6,015 6,323 6,215 6,097 5,926 6,078 5,897 6,003 Non-interest income 380 542 1,187 985 415 567 985 533 Non-interest expense 3,992 4,146 4,190 3,696 4,043 3,869 3,770 3,957 Income before income tax expense 2,403 2,719 3,212 3,386 2,298 2,776 3,112 2,579 Income tax expense 429 380 582 799 2,264 619 676 142 Net income $ 1,974 $ 2,339 $ 2,630 $ 2,587 $ 34 $ 2,157 $ 2,436 $ 2,437 Per share: Earnings per share - basic $ 0.22 $ 0.27 $ 0.30 $ 0.30 $ 0.00 $ 0.24 $ 0.28 $ 0.27 Earnings per share - diluted $ 0.22 $ 0.26 $ 0.29 $ 0.29 $ 0.00 $ 0.24 $ 0.26 $ 0.26 Dividends per share $ 0.05 $ 0.05 $ 0.50 $ 0.05 $ 0.20 $ 0.05 $ 0.05 $ 0.40 September 30, 2017 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr (Dollars in Thousands, Except Per Share Data) Interest income $ 4,505 $ 6,671 $ 7,430 $ 7,737 Interest expense 858 1,373 1,377 1,656 Net interest income 3,647 5,298 6,053 6,081 Provision for loan losses 185 2,365 30 410 Net interest income after provision for loan losses 3,462 2,933 6,023 5,671 Non-interest income 358 518 625 699 Non-interest expense 2,720 6,763 3,500 3,587 Income (loss) before income tax expense 1,100 (3,312) 3,148 2,783 Income tax expense(benefit) 370 (1,171) 1,031 711 Net income $ 730 $ (2,141) $ 2,117 $ 2,072 Per share: Earnings (loss) per share - basic $ 0.09 $ (0.27) $ 0.25 $ 0.26 Earnings (loss) per share - diluted $ 0.09 $ (0.27) $ 0.25 $ 0.24 Dividends per share $ 0.03 $ 0.03 $ 0.03 $ 0.03 |
NATURE OF OPERATIONS AND BASI_2
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details) $ in Thousands | Sep. 30, 2019USD ($)item | Sep. 30, 2018USD ($) |
Nature Of Operations And Basis Of Presentation [Line Items] | ||
Assets | $ 1,289,434 | $ 1,081,170 |
Prudential Savings Bank | ||
Nature Of Operations And Basis Of Presentation [Line Items] | ||
Number of full service branch offices | item | 10 | |
PSB Delaware, Inc. ("PSB") | ||
Nature Of Operations And Basis Of Presentation [Line Items] | ||
Assets | $ 167,700 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Significant Accounting Policies [Line Items] | |||
Par value of stock bought from and sold to the federal home loan bank (in dollars per share) | $ 100 | ||
Purchase of stock | $ 90,000 | ||
Line of credit | 12,500,000 | ||
Dividend payable | $ 0 | 0 | |
Cash dividend paid | $ 5,800,000 | $ 6,300,000 | $ 1,000,000 |
Common stock repurchased | 207,543 | 223,520 | 43,735 |
Average price per share of common stock | $ 17.47 | ||
ASU 2016-02, Leases (Topic 842) | |||
Significant Accounting Policies [Line Items] | |||
Description of increase in assets and liabilities due to change in new accounting principle | less than a one percent | ||
ASU 2014-09 Revenue from Contracts with Customers | |||
Significant Accounting Policies [Line Items] | |||
Percent of cumulatively total revenue | 98.00% | ||
Office Properties | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 10-39 years | ||
Furniture and equipment | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life | 1-7 years | ||
Certificates of Deposit | |||
Significant Accounting Policies [Line Items] | |||
FDIC insured amount | $ 249,000 | ||
Period for purchase of certificates of deposit issued by FDIC | one to five years |
EARNINGS PER SHARE - Calculated
EARNINGS PER SHARE - Calculated basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings per share - basic | |||||||||||||||
Net income | $ 2,587 | $ 2,630 | $ 2,339 | $ 1,974 | $ 2,437 | $ 2,436 | $ 2,157 | $ 34 | $ 2,072 | $ 2,117 | $ (2,141) | $ 730 | $ 9,530 | $ 7,064 | $ 2,778 |
Weighted average common shares outstanding - basic | 8,777,794 | 8,855,938 | 8,316,638 | ||||||||||||
Effect of CSEs - basic | 0 | 0 | 0 | ||||||||||||
Adjusted weighted average common shares used in earnings per share computation - basic | 8,777,794 | 8,855,938 | 8,316,638 | ||||||||||||
Earnings (loss) per share - basic (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.22 | $ 0.27 | $ 0.28 | $ 0.24 | $ 0 | $ 0.26 | $ 0.25 | $ (0.27) | $ 0.09 | $ 1.09 | $ 0.80 | $ 0.33 |
Earnings per share - diluted | |||||||||||||||
Net income | $ 2,587 | $ 2,630 | $ 2,339 | $ 1,974 | $ 2,437 | $ 2,436 | $ 2,157 | $ 34 | $ 2,072 | $ 2,117 | $ (2,141) | $ 730 | $ 9,530 | $ 7,064 | $ 2,778 |
Weighted average shares outstanding - diluted | 8,777,794 | 8,855,938 | 8,316,638 | ||||||||||||
Effect of CSEs - diluted | 158,083 | 204,175 | 357,871 | ||||||||||||
Adjusted weighted average shares used in earnings per share computation - diluted | 8,935,877 | 9,060,113 | 8,674,509 | ||||||||||||
Earnings (loss) per share - diluted (in dollars per share) | $ 0.29 | $ 0.29 | $ 0.26 | $ 0.22 | $ 0.26 | $ 0.26 | $ 0.24 | $ 0 | $ 0.24 | $ 0.25 | $ (0.27) | $ 0.09 | $ 1.07 | $ 0.78 | $ 0.32 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
EARNINGS PER SHARE | |||
Adjusted weighted average shares of common stock used in diluted earnings per share computation | 550,833 | 666,526 | 555,185 |
Adjusted weighted average shares of common stock having exercise prices less than the current market value and are considered anti-dilutive | 242,201 | 202,500 | 367,379 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in accumulated other comprehensive (loss) income by component net of tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ (8,154) | ||
Total other comprehensive income (loss) | 9,371 | $ (7,091) | $ (1,558) |
Ending Balance | 1,192 | (8,154) | |
Total accumulated other comprehensive income (loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (8,154) | (760) | 798 |
Other comprehensive (loss) income before reclassification | 10,206 | (6,698) | (1,403) |
Amount reclassified from accumulated other comprehensive income | (835) | (393) | (155) |
Total other comprehensive income (loss) | 9,371 | (7,091) | (1,558) |
Reclassification due to adoption of ASU 2016-01 | (25) | (303) | |
Ending Balance | 1,192 | (8,154) | (760) |
Unrealized gain (loss) on AFS securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (8,320) | (1,091) | 931 |
Other comprehensive (loss) income before reclassification | 17,278 | (7,171) | (1,867) |
Amount reclassified from accumulated other comprehensive income | (835) | 245 | (155) |
Total other comprehensive income (loss) | 16,443 | (6,926) | (2,022) |
Reclassification due to adoption of ASU 2016-01 | (25) | (303) | |
Ending Balance | 8,098 | (8,320) | (1,091) |
Unrealized gain (loss) on interest rate swaps | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 166 | 331 | (133) |
Other comprehensive (loss) income before reclassification | (7,072) | 473 | 464 |
Amount reclassified from accumulated other comprehensive income | 0 | (638) | |
Total other comprehensive income (loss) | (7,072) | (165) | 464 |
Reclassification due to adoption of ASU 2016-01 | 0 | 0 | |
Ending Balance | $ (6,906) | $ 166 | $ 331 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Significant amounts reclassified out of each component of accumulated other comprehensive (loss) income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Unrealized gains on available for sale securities | |||
Unrealized gain (losses) | $ 1,057 | $ (310) | $ 235 |
Amount reclassified from accumulated other comprehensive (loss) income | |||
Unrealized gains on available for sale securities | |||
Unrealized gain (losses) | 1,057 | 498 | 235 |
Income taxes | (222) | (105) | (80) |
Total | 835 | 393 | |
Unrealized gain (loss) on AFS securities | |||
Unrealized gains on available for sale securities | |||
Total | (835) | 245 | (155) |
Unrealized gain (loss) on AFS securities | Amount reclassified from accumulated other comprehensive (loss) income | |||
Unrealized gains on available for sale securities | |||
Unrealized gain (losses) | 1,057 | (310) | 235 |
Income taxes | (222) | 65 | $ (80) |
Total | 835 | (245) | |
Unrealized gain (loss) on interest rate swaps | |||
Unrealized gains on available for sale securities | |||
Total | 0 | (638) | |
Unrealized gain (loss) on interest rate swaps | Amount reclassified from accumulated other comprehensive (loss) income | |||
Unrealized gains on available for sale securities | |||
Unrealized gain (losses) | 0 | 808 | |
Income taxes | 0 | (170) | |
Total | $ 0 | $ 638 |
INVESTMENT AND MORTGAGE-BACKE_3
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of investment and mortgage-backed securities, with gross unrealized gains and losses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Securities Available for Sale: | ||
Amortized Cost | $ 502,571 | $ 316,719 |
Gross Unrealized Losses | (10,640) | |
Gross Unrealized Gains | 108 | |
Fair Value | 512,822 | 306,187 |
Equity securities, Amortized Cost | 6 | |
Equity securities, Gross Unrealized Gains | 89 | |
Equity securities, Gross Unrealized Losses | 0 | |
Equity securities, Fair Value | 95 | |
U.S. Government and agency obligations | ||
Securities Available for Sale: | ||
Amortized Cost | 24,960 | 25,562 |
Gross Unrealized Losses | (98) | (1,391) |
Gross Unrealized Gains | 3 | 0 |
Fair Value | 24,865 | 24,171 |
State and political subdivisions | ||
Securities Available for Sale: | ||
Amortized Cost | 47,909 | 22,078 |
Gross Unrealized Losses | (747) | (542) |
Gross Unrealized Gains | 484 | 0 |
Fair Value | 47,646 | 21,536 |
Mortgage-backed securities - US government agencies | ||
Securities Available for Sale: | ||
Amortized Cost | 362,342 | 193,451 |
Gross Unrealized Losses | (406) | (6,168) |
Gross Unrealized Gains | 8,836 | 77 |
Fair Value | 370,772 | 187,360 |
Corporate debt securities | ||
Securities Available for Sale: | ||
Amortized Cost | 67,360 | 75,622 |
Gross Unrealized Losses | (38) | (2,539) |
Gross Unrealized Gains | 2,217 | 0 |
Fair Value | 69,539 | 73,083 |
Total debt securities available for sale | ||
Securities Available for Sale: | ||
Amortized Cost | 502,571 | 316,713 |
Gross Unrealized Losses | (1,289) | (10,640) |
Gross Unrealized Gains | 11,540 | 77 |
Fair Value | 512,822 | 306,150 |
FHLMC preferred stock | ||
Securities Available for Sale: | ||
Amortized Cost | 6 | |
Gross Unrealized Losses | 0 | |
Gross Unrealized Gains | 31 | |
Fair Value | $ 37 | |
Equity securities, Amortized Cost | 6 | |
Equity securities, Gross Unrealized Gains | 89 | |
Equity securities, Gross Unrealized Losses | 0 | |
Equity securities, Fair Value | $ 95 |
INVESTMENT AND MORTGAGE-BACKE_4
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of investment and mortgage-backed securities, with gross unrealized gains and losses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Securities Held to Maturity: | ||
Amortized Cost | $ 68,635 | $ 59,852 |
Gross Unrealized Gains | 1,064 | 235 |
Gross unrealized losses | (192) | (4,160) |
Fair value | 69,507 | 55,927 |
U.S. Government and agency obligations | ||
Securities Held to Maturity: | ||
Amortized Cost | 43,349 | 33,500 |
Gross Unrealized Gains | 181 | 85 |
Gross unrealized losses | (188) | (3,311) |
Fair value | 43,342 | 30,274 |
Mortgage-backed securities - US government agencies | ||
Securities Held to Maturity: | ||
Amortized Cost | 4,812 | 5,778 |
Gross Unrealized Gains | 238 | 148 |
Gross unrealized losses | (4) | (153) |
Fair value | 5,046 | 5,773 |
State and political subdivisions | ||
Securities Held to Maturity: | ||
Amortized Cost | 20,474 | 20,574 |
Gross Unrealized Gains | 645 | 2 |
Gross unrealized losses | 0 | (696) |
Fair value | $ 21,119 | $ 19,880 |
INVESTMENT AND MORTGAGE-BACKE_5
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Gross unrealized losses and related fair values of investment securities, aggregated by investment category and length of time (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | $ (106) | $ (4,171) |
Less than 12 months - Fair value | 59,933 | 177,619 |
More than 12 months - Gross Unrealized Losses | (1,183) | (6,469) |
More than 12 months - Fair value | 67,720 | 120,290 |
Gross Unrealized Losses - Total | (1,289) | (10,640) |
Fair Value - Total | 127,653 | 297,909 |
U.S. Government and agency obligations | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (3) | (89) |
Less than 12 months - Fair value | 6,997 | 4,479 |
More than 12 months - Gross Unrealized Losses | (95) | (1,302) |
More than 12 months - Fair value | 3,866 | 19,692 |
Gross Unrealized Losses - Total | (98) | (1,391) |
Fair Value - Total | 10,863 | 24,171 |
Mortgage-backed securities - US government agencies | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (86) | (1,821) |
Less than 12 months - Fair value | 50,057 | 92,851 |
More than 12 months - Gross Unrealized Losses | (320) | (4,347) |
More than 12 months - Fair value | 37,056 | 86,268 |
Gross Unrealized Losses - Total | (406) | (6,168) |
Fair Value - Total | 87,113 | 179,119 |
State and political subdivisions | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (4) | (542) |
Less than 12 months - Fair value | 890 | 21,536 |
More than 12 months - Gross Unrealized Losses | (743) | 0 |
More than 12 months - Fair value | 23,784 | 0 |
Gross Unrealized Losses - Total | (747) | (542) |
Fair Value - Total | 24,674 | 21,536 |
Corporate debt securities | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (13) | (1,719) |
Less than 12 months - Fair value | 1,989 | 58,753 |
More than 12 months - Gross Unrealized Losses | (25) | (820) |
More than 12 months - Fair value | 3,014 | 14,330 |
Gross Unrealized Losses - Total | (38) | (2,539) |
Fair Value - Total | $ 5,003 | $ 73,083 |
INVESTMENT AND MORTGAGE-BACKE_6
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Gross unrealized losses and related fair values of investment securities, aggregated by investment category and length of time (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | $ (192) | $ (340) |
Less than 12 Months, Fair Value | 15,605 | 13,868 |
More than 12 months - Gross Unrealized Losses | 0 | (3,820) |
12 Months or More, Fair Value | 0 | 34,738 |
Total - Gross Unrealized Losses | (192) | (4,160) |
Total - Fair Value | 15,605 | 48,606 |
U.S. Government and agency obligations | ||
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | (188) | 0 |
Less than 12 Months, Fair Value | 14,811 | 0 |
More than 12 months - Gross Unrealized Losses | 0 | (3,311) |
12 Months or More, Fair Value | 0 | 27,190 |
Total - Gross Unrealized Losses | (188) | (3,311) |
Total - Fair Value | 14,811 | 27,190 |
Mortgage-backed securities - US government agencies | ||
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | (4) | (106) |
Less than 12 Months, Fair Value | 794 | 2,630 |
More than 12 months - Gross Unrealized Losses | 0 | (47) |
12 Months or More, Fair Value | 0 | 930 |
Total - Gross Unrealized Losses | (4) | (153) |
Total - Fair Value | 794 | 3,560 |
State and political subdivisions | ||
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | 0 | (234) |
Less than 12 Months, Fair Value | 0 | 11,238 |
More than 12 months - Gross Unrealized Losses | 0 | (462) |
12 Months or More, Fair Value | 0 | 6,618 |
Total - Gross Unrealized Losses | 0 | (696) |
Total - Fair Value | $ 0 | $ 17,856 |
INVESTMENT AND MORTGAGE-BACKE_7
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Gross unrealized losses and related fair values of investment securities, aggregated by investment category and length of time (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | ||
Less than 12 months - Gross Unrealized Losses | $ (298) | $ (4,511) |
Fair Value, Less than 12 Months | 75,538 | 191,487 |
More than 12 months - Gross Unrealized Losses | (1,183) | (10,289) |
Fair Value, 12 Months or More | 67,720 | 155,028 |
Gross Unrealized Losses -Total | (1,481) | (14,800) |
Fair Value - Total | $ 143,258 | $ 346,515 |
INVESTMENT AND MORTGAGE-BACKE_8
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of debt securities, by contractual maturity (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Available for Sale, Amortized Cost | |
Due within one year | $ 0 |
Due after one through five years | 17,547 |
Due after five through ten years | 49,813 |
Due after ten years | 72,869 |
Total | 140,229 |
Available for Sale, Fair Value | |
Due within one year | 0 |
Due after one through five years | 17,748 |
Due after five through ten years | 51,791 |
Due after ten years | 72,511 |
Total | $ 142,050 |
INVESTMENT AND MORTGAGE-BACKE_9
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of debt securities, by contractual maturity (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Held to Maturity - Amortized Cost | |
Due within one year | $ 0 |
Due after one through five years | 2,284 |
Due after five through ten years | 24,150 |
Due after ten years | 37,389 |
Total | 63,823 |
Held to Maturity - Fair Value | |
Due within one year | 0 |
Due after one through five years | 2,306 |
Due after five through ten years | 24,669 |
Due after ten years | 37,486 |
Total | $ 64,461 |
INVESTMENT AND MORTGAGE-BACK_10
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Additional Information (Details) | 12 Months Ended | ||
Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Marketable Securities [Line Items] | |||
Securities with a fair value in safekeeping account at the FHLB | $ 338,900,000 | ||
Gross unrealized loss | $ 10,640,000 | ||
Realized net gains (losses) | 1,100,000 | 376,000 | $ 235,000 |
Proceeds from Sale of Mortgage-backed Securities (MBS), Available-for-sale | 75,639,000 | 11,052,000 | $ 20,863,000 |
Required to hold securities for its borrowings | 154,800,000 | ||
Excess securities not restricted and could be sold or transferred | $ 184,100,000 | ||
U.S. Government and agency obligations | |||
Marketable Securities [Line Items] | |||
Number of debt securities | security | 7 | ||
Gross unrealized loss | $ 98,000 | 1,391,000 | |
Percentage of reduction in amortized cost of debt securities | 1.10% | ||
Mortgage-backed securities - US government agencies | |||
Marketable Securities [Line Items] | |||
Number of debt securities | security | 44 | ||
Gross unrealized loss | $ 406,000 | 6,168,000 | |
Percentage of reduction in amortized cost of debt securities | 0.10% | ||
Corporate debt securities | |||
Marketable Securities [Line Items] | |||
Number of debt securities | security | 3 | ||
Gross unrealized loss | $ 38,000 | 2,539,000 | |
Percentage of reduction in amortized cost of debt securities | 0.80% | ||
State and political subdivisions | |||
Marketable Securities [Line Items] | |||
Number of debt securities | security | 8 | ||
Gross unrealized loss | $ 747,000 | $ 542,000 | |
Percentage of reduction in amortized cost of debt securities | 1.60% |
LOANS RECEIVABLE (Details)
LOANS RECEIVABLE (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 708,233 | $ 665,391 | ||
Undisbursed portion of loans-in-process | (114,528) | (54,474) | ||
Deferred loan fees | (2,856) | (2,818) | ||
Allowance for loan losses | (5,393) | (5,167) | $ (4,466) | $ (3,269) |
Net loans | 585,456 | 602,932 | ||
One-to-four family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 268,780 | 324,865 | ||
Allowance for loan losses | (1,002) | (1,325) | (1,241) | (1,627) |
Multi-family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 30,582 | 34,355 | ||
Allowance for loan losses | (315) | (347) | (205) | (137) |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 128,521 | 119,511 | ||
Allowance for loan losses | (1,257) | (1,154) | (1,201) | (859) |
Construction and land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 253,368 | 160,228 | ||
Allowance for loan losses | (2,034) | (1,554) | (1,358) | (316) |
Loans to financial institutions | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 6,000 | 6,000 | ||
Allowance for loan losses | (63) | (64) | 0 | |
Commercial business | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 19,630 | 17,792 | ||
Allowance for loan losses | (206) | (187) | (4) | (1) |
Leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 518 | 1,687 | ||
Allowance for loan losses | (5) | (18) | (23) | (21) |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 834 | 953 | ||
Allowance for loan losses | $ (13) | $ (17) | $ (24) | $ (10) |
LOANS RECEIVABLE - Summary of l
LOANS RECEIVABLE - Summary of loans individually and collectively evaluated for impairment by loan segment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Loans: | ||
Individually evaluated for impairment | $ 15,542 | $ 16,048 |
Collectively evaluated for impairment | 692,691 | 649,343 |
Total loans | 708,233 | 665,391 |
One-to-four family residential | ||
Loans: | ||
Individually evaluated for impairment | 4,827 | 5,081 |
Collectively evaluated for impairment | 263,953 | 319,784 |
Total loans | 268,780 | 324,865 |
Multi-family residential | ||
Loans: | ||
Individually evaluated for impairment | 0 | 298 |
Collectively evaluated for impairment | 30,582 | 34,057 |
Total loans | 30,582 | 34,355 |
Commercial real estate | ||
Loans: | ||
Individually evaluated for impairment | 1,965 | 1,919 |
Collectively evaluated for impairment | 126,556 | 117,592 |
Total loans | 128,521 | 119,511 |
Construction and land development | ||
Loans: | ||
Individually evaluated for impairment | 8,750 | 8,750 |
Collectively evaluated for impairment | 244,618 | 151,478 |
Total loans | 253,368 | 160,228 |
Commercial business | ||
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 19,630 | 17,792 |
Total loans | 19,630 | 17,792 |
Loans to financial institutions | ||
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 6,000 | 6,000 |
Total loans | 6,000 | 6,000 |
Leases | ||
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 518 | 1,687 |
Total loans | 518 | 1,687 |
Consumer | ||
Loans: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 834 | 953 |
Total loans | $ 834 | $ 953 |
LOANS RECEIVABLE - Impaired loa
LOANS RECEIVABLE - Impaired loans by class, segregated by those for which specific allowance was required and those for which specific allowance was not necessary (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | $ 0 | $ 0 |
Impaired Loans with Specific Allowance - Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance - Recorded Investment | 15,542 | 16,048 |
Total Impaired Loans - Recorded Investment | 15,542 | 16,048 |
Total impaired loans - Unpaid Principal Balance | 18,435 | 18,918 |
One-to-four family residential | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance - Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance - Recorded Investment | 4,827 | 5,081 |
Total Impaired Loans - Recorded Investment | 4,827 | 5,081 |
Total impaired loans - Unpaid Principal Balance | 5,179 | 5,432 |
Multi-family residential | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance - Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance - Recorded Investment | 0 | 298 |
Total Impaired Loans - Recorded Investment | 0 | 298 |
Total impaired loans - Unpaid Principal Balance | 0 | 298 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance - Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance - Recorded Investment | 1,965 | 1,919 |
Total Impaired Loans - Recorded Investment | 1,965 | 1,919 |
Total impaired loans - Unpaid Principal Balance | 2,125 | 2,057 |
Construction and land development | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance - Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance - Recorded Investment | 8,750 | 8,750 |
Total Impaired Loans - Recorded Investment | 8,750 | 8,750 |
Total impaired loans - Unpaid Principal Balance | $ 11,131 | $ 11,131 |
LOANS RECEIVABLE - Average reco
LOANS RECEIVABLE - Average recorded investment in impaired loans and related interest income recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | $ 15,720 | $ 17,347 | $ 18,044 |
Income Recognized on Accrual Basis | 123 | 85 | 161 |
Income Recognized on Cash Basis | 26 | 66 | 103 |
One-to-four family residential | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 4,685 | 5,741 | 6,096 |
Income Recognized on Accrual Basis | 77 | 24 | 89 |
Income Recognized on Cash Basis | 22 | 59 | 91 |
Multi-family residential | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 145 | 306 | 321 |
Income Recognized on Accrual Basis | 10 | 21 | 23 |
Income Recognized on Cash Basis | 0 | 0 | 0 |
Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 2,139 | 2,557 | 2,459 |
Income Recognized on Accrual Basis | 36 | 40 | 49 |
Income Recognized on Cash Basis | 4 | 7 | 12 |
Construction and land development | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 8,751 | 8,743 | 9,163 |
Income Recognized on Accrual Basis | 0 | 0 | 0 |
Income Recognized on Cash Basis | $ 0 | $ 0 | 0 |
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 5 | ||
Income Recognized on Accrual Basis | 0 | ||
Income Recognized on Cash Basis | $ 0 |
LOANS RECEIVABLE - Summary of c
LOANS RECEIVABLE - Summary of classes of loan portfolio in which formal risk weighting system is utilized (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 708,233 | $ 665,391 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 268,780 | 324,865 |
Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 30,582 | 34,355 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 128,521 | 119,511 |
Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 253,368 | 160,228 |
Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,000 | 6,000 |
Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 19,630 | 17,792 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 834 | 953 |
Risk Rating System | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 706,881 | 662,751 |
Risk Rating System | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 268,780 | 324,865 |
Risk Rating System | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 30,582 | 34,355 |
Risk Rating System | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 128,521 | 119,511 |
Risk Rating System | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 253,368 | 160,228 |
Risk Rating System | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,000 | 6,000 |
Risk Rating System | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 19,630 | 17,792 |
Risk Rating System | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 685,832 | |
Risk Rating System | Pass | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 262,164 | |
Risk Rating System | Pass | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 30,582 | |
Risk Rating System | Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 122,838 | |
Risk Rating System | Pass | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 244,618 | |
Risk Rating System | Pass | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,000 | |
Risk Rating System | Pass | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 19,630 | |
Risk Rating System | Special Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 642,030 | |
Risk Rating System | Special Pass | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 317,033 | |
Risk Rating System | Special Pass | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 34,057 | |
Risk Rating System | Special Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 115,670 | |
Risk Rating System | Special Pass | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 151,478 | |
Risk Rating System | Special Pass | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,000 | |
Risk Rating System | Special Pass | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 17,792 | |
Risk Rating System | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,507 | |
Risk Rating System | Special Mention | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,789 | |
Risk Rating System | Special Mention | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,718 | |
Risk Rating System | Special Mention | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Special Mention | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Special Mention | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Total Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,673 | |
Risk Rating System | Total Mention | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,751 | |
Risk Rating System | Total Mention | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Total Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,922 | |
Risk Rating System | Total Mention | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Total Mention | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Total Mention | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 15,542 | 16,048 |
Risk Rating System | Substandard | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,827 | 5,081 |
Risk Rating System | Substandard | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 298 |
Risk Rating System | Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,965 | 1,919 |
Risk Rating System | Substandard | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,750 | 8,750 |
Risk Rating System | Substandard | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Substandard | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 0 | $ 0 |
LOANS RECEIVABLE - Loans in whi
LOANS RECEIVABLE - Loans in which formal risk rating system is not utilized, but loans are segregated between performing and non-performing based primarily on delinquency status (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 708,233 | $ 665,391 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 268,780 | 324,865 |
Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 518 | 1,687 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 834 | 953 |
Non Risk Rating System | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 270,132 | 327,505 |
Non Risk Rating System | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 268,780 | 324,865 |
Non Risk Rating System | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 518 | 1,687 |
Non Risk Rating System | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 834 | 953 |
Non Risk Rating System | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 266,420 | 324,493 |
Non Risk Rating System | Performing | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 265,068 | 321,853 |
Non Risk Rating System | Performing | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 518 | 1,687 |
Non Risk Rating System | Performing | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 834 | 953 |
Non Risk Rating System | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,712 | 3,012 |
Non Risk Rating System | Nonperforming | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,712 | 3,012 |
Non Risk Rating System | Nonperforming | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non Risk Rating System | Nonperforming | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 0 | $ 0 |
LOANS RECEIVABLE - Loan categor
LOANS RECEIVABLE - Loan categories of loan portfolio summarized by aging categories of performing loans and nonaccrual loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 693,975 | $ 651,233 |
Past Due | 14,258 | 14,158 |
Total Loans | 708,233 | 665,391 |
Non- Accrual | 13,935 | 13,389 |
90 Days+ Past Due and Accruing | 0 | 0 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 845 | 1,875 |
90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 13,413 | 12,283 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 264,784 | 321,749 |
Past Due | 3,996 | 3,116 |
Total Loans | 268,780 | 324,865 |
Non- Accrual | 3,712 | 3,012 |
90 Days+ Past Due and Accruing | 0 | 0 |
One-to-four family residential | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 750 | 1,037 |
One-to-four family residential | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3,246 | 2,079 |
Multi-family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 30,582 | 34,355 |
Past Due | 0 | 0 |
Total Loans | 30,582 | 34,355 |
Non- Accrual | 0 | 0 |
90 Days+ Past Due and Accruing | 0 | 0 |
Multi-family residential | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Multi-family residential | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 127,104 | 117,335 |
Past Due | 1,417 | 2,176 |
Total Loans | 128,521 | 119,511 |
Non- Accrual | 1,473 | 1,627 |
90 Days+ Past Due and Accruing | 0 | 0 |
Commercial real estate | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 722 |
Commercial real estate | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,417 | 1,454 |
Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 244,618 | 151,478 |
Past Due | 8,750 | 8,750 |
Total Loans | 253,368 | 160,228 |
Non- Accrual | 8,750 | 8,750 |
90 Days+ Past Due and Accruing | 0 | 0 |
Construction and land development | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Construction and land development | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 8,750 | 8,750 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 19,630 | 17,792 |
Past Due | 0 | 0 |
Total Loans | 19,630 | 17,792 |
Non- Accrual | 0 | 0 |
90 Days+ Past Due and Accruing | 0 | 0 |
Commercial business | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial business | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Loans to financial institutions | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 6,000 | 6,000 |
Past Due | 0 | 0 |
Total Loans | 6,000 | 6,000 |
Non- Accrual | 0 | 0 |
90 Days+ Past Due and Accruing | 0 | 0 |
Loans to financial institutions | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Loans to financial institutions | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 518 | 1,687 |
Past Due | 0 | 0 |
Total Loans | 518 | 1,687 |
Non- Accrual | 0 | 0 |
90 Days+ Past Due and Accruing | 0 | 0 |
Leases | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Leases | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 739 | 837 |
Past Due | 95 | 116 |
Total Loans | 834 | 953 |
Non- Accrual | 0 | 0 |
90 Days+ Past Due and Accruing | 0 | 0 |
Consumer | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 95 | 116 |
Consumer | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
LOANS RECEIVABLE - Activity in
LOANS RECEIVABLE - Activity in allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | $ 5,167 | $ 4,466 | $ 3,269 | $ 5,167 | $ 4,466 | $ 3,269 | |||||||||
Charge-offs | (38) | (137) | (1,975) | ||||||||||||
Recoveries | 164 | 28 | 182 | ||||||||||||
Provision | $ 100 | $ 0 | $ 0 | 0 | $ 125 | $ 325 | $ 150 | 210 | $ 410 | $ 30 | $ 2,365 | 185 | 100 | 810 | 2,990 |
ALLL balance | 5,393 | 5,167 | 4,466 | 5,393 | 5,167 | 4,466 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Collectively evaluated for impairment | 5,393 | 5,167 | 4,466 | 5,393 | 5,167 | 4,466 | |||||||||
One-to-four family residential | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 1,325 | 1,241 | 1,627 | 1,325 | 1,241 | 1,627 | |||||||||
Charge-offs | (7) | (114) | (140) | ||||||||||||
Recoveries | 164 | 28 | 182 | ||||||||||||
Provision | (480) | 170 | (428) | ||||||||||||
ALLL balance | 1,002 | 1,325 | 1,241 | 1,002 | 1,325 | 1,241 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Collectively evaluated for impairment | 1,002 | 1,325 | 1,241 | 1,002 | 1,325 | 1,241 | |||||||||
Multi-family residential | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 347 | 205 | 137 | 347 | 205 | 137 | |||||||||
Charge-offs | 0 | 0 | 0 | ||||||||||||
Recoveries | 0 | 0 | 0 | ||||||||||||
Provision | (32) | 142 | 68 | ||||||||||||
ALLL balance | 315 | 347 | 205 | 315 | 347 | 205 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Collectively evaluated for impairment | 315 | 347 | 205 | 315 | 347 | 205 | |||||||||
Commercial real estate | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 1,154 | 1,201 | 859 | 1,154 | 1,201 | 859 | |||||||||
Charge-offs | 0 | 0 | 0 | ||||||||||||
Recoveries | 0 | 0 | 0 | ||||||||||||
Provision | 103 | (47) | 342 | ||||||||||||
ALLL balance | 1,257 | 1,154 | 1,201 | 1,257 | 1,154 | 1,201 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Collectively evaluated for impairment | 1,257 | 1,154 | 1,201 | 1,257 | 1,154 | 1,201 | |||||||||
Construction and land development | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 1,554 | 1,358 | 316 | 1,554 | 1,358 | 316 | |||||||||
Charge-offs | 0 | (12) | (1,819) | ||||||||||||
Recoveries | 0 | 0 | 0 | ||||||||||||
Provision | 480 | 208 | 2,861 | ||||||||||||
ALLL balance | 2,034 | 1,554 | 1,358 | 2,034 | 1,554 | 1,358 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Collectively evaluated for impairment | 2,034 | 1,554 | 1,358 | 2,034 | 1,554 | 1,358 | |||||||||
Commercial business | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 187 | 4 | 1 | 187 | 4 | 1 | |||||||||
Charge-offs | 0 | 0 | 0 | ||||||||||||
Recoveries | 0 | 0 | 0 | ||||||||||||
Provision | 19 | 183 | 3 | ||||||||||||
ALLL balance | 206 | 187 | 4 | 206 | 187 | 4 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Collectively evaluated for impairment | 206 | 187 | 4 | 206 | 187 | 4 | |||||||||
Loans to financial institutions | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 64 | 0 | 64 | 0 | |||||||||||
Charge-offs | 0 | 0 | |||||||||||||
Recoveries | 0 | 0 | |||||||||||||
Provision | (1) | 64 | |||||||||||||
ALLL balance | 63 | 64 | 0 | 63 | 64 | 0 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||||||
Collectively evaluated for impairment | 63 | 64 | 63 | 64 | |||||||||||
Leases | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 18 | 23 | 21 | 18 | 23 | 21 | |||||||||
Charge-offs | (31) | 0 | 0 | ||||||||||||
Recoveries | 0 | 0 | 0 | ||||||||||||
Provision | 18 | (5) | 2 | ||||||||||||
ALLL balance | 5 | 18 | 23 | 5 | 18 | 23 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Collectively evaluated for impairment | 5 | 18 | 23 | 5 | 18 | 23 | |||||||||
Consumer | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 17 | 24 | 10 | 17 | 24 | 10 | |||||||||
Charge-offs | 0 | (11) | (16) | ||||||||||||
Recoveries | 0 | 0 | 0 | ||||||||||||
Provision | (4) | 4 | 30 | ||||||||||||
ALLL balance | 13 | 17 | 24 | 13 | 17 | 24 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Collectively evaluated for impairment | 13 | 17 | 24 | 13 | 17 | 24 | |||||||||
Unallocated | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | $ 501 | $ 410 | $ 298 | 501 | 410 | 298 | |||||||||
Charge-offs | 0 | 0 | 0 | ||||||||||||
Recoveries | 0 | 0 | 0 | ||||||||||||
Provision | (3) | 91 | 112 | ||||||||||||
ALLL balance | 498 | 501 | 410 | 498 | 501 | 410 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Collectively evaluated for impairment | $ 498 | $ 501 | $ 410 | $ 498 | $ 501 | $ 410 |
LOANS RECEIVABLE - Additional I
LOANS RECEIVABLE - Additional Information 1 (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2019USD ($)loan | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | Sep. 30, 2017USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Increase (decrease) from interest income on nonaccrual loans | $ 786,000 | $ 744,000 | $ 636,000 | ||||||||||||
Provision for loan losses | $ 100,000 | $ 0 | $ 0 | $ 0 | $ 125,000 | $ 325,000 | $ 150,000 | $ 210,000 | $ 410,000 | $ 30,000 | $ 2,365,000 | $ 185,000 | $ 100,000 | 810,000 | 2,990,000 |
Number of loans receivables classified as troubled debt restructuring | loan | 9 | 9 | |||||||||||||
Amount of loans classified as troubled debt restructuring | $ 6,000,000 | $ 6,000,000 | |||||||||||||
Fair value of loans acquired net of discount | 160,800,000 | 160,800,000 | |||||||||||||
Discount on fair value of loans acquired | 4,600,000 | 4,600,000 | |||||||||||||
Discount remained | 3,000,000 | 3,000,000 | |||||||||||||
Nonperforming | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Non performing assets | 14,300,000 | $ 14,400,000 | $ 14,300,000 | $ 14,400,000 | |||||||||||
Percentage of nonperforming assets | 1.10% | 1.30% | |||||||||||||
One-to-four family residential | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Provision for loan losses | $ (480,000) | $ 170,000 | (428,000) | ||||||||||||
One-to-four family residential | Nonperforming | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Number of non-accrual loans | loan | 22 | ||||||||||||||
Non performing assets | $ 3,700,000 | $ 3,700,000 | |||||||||||||
Single family residential investment properties | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Number of loans receivables classified as troubled debt restructuring | loan | 1 | 1 | |||||||||||||
Single family residential investment properties | Real estate loan | Nonperforming | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Number of non-accrual loans | loan | 1 | ||||||||||||||
Non performing assets | $ 348,000 | $ 348,000 | |||||||||||||
Commercial real estate | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Provision for loan losses | $ 103,000 | $ (47,000) | 342,000 | ||||||||||||
Commercial real estate | Nonperforming | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Number of non-accrual loans | loan | 5 | ||||||||||||||
Non performing assets | 1,500,000 | $ 1,500,000 | |||||||||||||
Construction and land development | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Provision for loan losses | $ 480,000 | $ 208,000 | $ 2,861,000 | ||||||||||||
Construction and land development | Nonperforming | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Number of non-accrual loans | loan | 5 | ||||||||||||||
Non performing assets | $ 8,700,000 | $ 8,700,000 |
LOANS RECEIVABLE - Additional_2
LOANS RECEIVABLE - Additional Information 2 (Details) | 12 Months Ended | |
Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans classified as troubled debt restructurings ("TDRs"), Recorded investment | $ 6,000,000 | |
Number of loans classified as troubled debt restructuring | loan | 9 | |
Loans receivable, net | $ 585,456,000 | $ 602,932,000 |
Number of remaining loan default | loan | 3 | |
Carrying amount | $ 708,233,000 | 665,391,000 |
Residential real estate property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans classified as troubled debt restructurings ("TDRs"), Recorded investment | $ 628,000 | |
Number of loans classified as troubled debt restructuring | loan | 5 | |
Number of loans | loan | 15 | |
Carrying amount | $ 2,300,000 | |
Single family residential investment properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount of TDR loans, default | $ 432,000 | |
Number of loans classified as troubled debt restructuring | loan | 1 | |
Nonperforming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans classified as troubled debt restructurings ("TDRs"), Recorded investment | $ 4,900,000 | |
Write-down amount of TDR loans | $ 1,900,000 | |
Number of loans classified as troubled debt restructuring | loan | 4 | |
Loans receivable, net | $ 10,700,000 | |
Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans classified as troubled debt restructurings ("TDRs"), Recorded investment | $ 15,500,000 | 16,000,000 |
Number of loans classified as troubled debt restructuring | loan | 5 | |
Substandard | Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans classified as troubled debt restructurings ("TDRs"), Recorded investment | $ 13,900,000 | $ 13,400,000 |
OFFICE PROPERTIES AND EQUIPME_3
OFFICE PROPERTIES AND EQUIPMENT - Summary of office properties and equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 12,525 | $ 12,303 |
Accumulated depreciation | (5,319) | (4,864) |
Total office properties and equipment, net of accumulated depreciation | 7,206 | 7,439 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,437 | 1,437 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 7,449 | 7,449 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 3,639 | $ 3,417 |
OFFICE PROPERTIES AND EQUIPME_4
OFFICE PROPERTIES AND EQUIPMENT - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
OFFICE PROPERTIES AND EQUIPMENT | |||
Depreciation expense | $ 619,000 | $ 625,000 | $ 553,000 |
Lease expense | 304,000 | $ 360,000 | $ 383,000 |
Lease commitments obligated to pay, fiscal year 2020 | 250,000 | ||
Lease commitments obligated to pay, fiscal year 2021 | 253,000 | ||
Lease commitments obligated to pay, fiscal year 2022 | 256,000 | ||
Lease commitments obligated to pay, fiscal year 2023 | 260,000 | ||
Lease commitments obligated to pay, fiscal year 2024 | 263,000 | ||
Lease commitments obligated to pay, thereafter | $ 761,000 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Amount | ||
Non interest-bearing checking accounts | $ 16,949 | $ 13,620 |
Interest-bearing checking accounts | 58,647 | 49,209 |
Money market deposit accounts | 75,766 | 66,120 |
Passbook, club and statement savings | 80,899 | 91,489 |
Certificates maturing in six months or less | 294,343 | 301,184 |
Certificates maturing in more than six months | 218,840 | 262,636 |
Total deposits | $ 745,444 | $ 784,258 |
Percent | ||
Non interest-bearing checking accounts | 2.20% | 1.70% |
Interest-bearing checking accounts | 7.90% | 6.30% |
Money market deposit accounts | 10.20% | 8.40% |
Passbook, club and statement savings | 10.90% | 11.70% |
Certificates maturing in six months or less | 39.50% | 38.40% |
Certificates maturing in more than six months | 29.30% | 33.50% |
Total | 100.00% | 100.00% |
DEPOSITS - Summary of scheduled
DEPOSITS - Summary of scheduled maturities of certificate accounts (Details) $ in Thousands | Sep. 30, 2019USD ($) |
DEPOSITS | |
One year or less | $ 405,670 |
One through two years | 30,682 |
Two through three years | 32,113 |
Three through four years | 27,138 |
Four through five years | 17,580 |
Total | $ 513,183 |
DEPOSITS - Interest expense on
DEPOSITS - Interest expense on deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
DEPOSITS | |||
Checking and money market deposit accounts | $ 899 | $ 247 | $ 192 |
Passbook, club and statement savings accounts | 124 | 66 | 55 |
Certificate accounts | 12,137 | 7,073 | 3,683 |
Total | $ 13,160 | $ 7,386 | $ 3,930 |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
DEPOSITS | ||
Certificates of $250,000 and over | $ 182.8 | $ 81.9 |
Brokered deposits | $ 153.1 | $ 32.7 |
ADVANCES FROM FEDERAL HOME LO_5
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM - Summary of short-term borrowings from the FHLB of Pittsburgh (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | ||
Balance at year-end | $ 90,000 | $ 10,000 |
Average balance outstanding | 31,158 | 18,933 |
Maximum month-end balance | $ 90,000 | $ 30,200 |
Weight-average rate at year-end | 2.32% | 2.31% |
Weight-average rate during the year | 2.53% | 1.81% |
ADVANCES FROM FEDERAL HOME LO_6
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM - Additional Information (Details) $ in Thousands | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan |
Short-term Debt [Line Items] | ||
Advances from Federal Home Loan Bank -Short Term | $ 90,000 | $ 10,000 |
Unsecured borrowing facilities with ACBB and PNC | $ 12,500 | $ 10,000 |
Interest rate swap contract one | ||
Short-term Debt [Line Items] | ||
Number of 30 day FHLB advances | loan | 7 | 1 |
Advances from Federal Home Loan Bank -Short Term | $ 90,000 | $ 10,000 |
Interest rate swap contract two | ||
Short-term Debt [Line Items] | ||
Advances from Federal Home Loan Bank -Short Term | $ 10,000 |
ADVANCES FROM FEDERAL HOME LO_7
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 286,904 | $ 144,683 |
Weighted average interest rate | 2.58% | 2.58% |
Fixed Rate Amortizing Maturity from 1 Oct 19 to 30 Sep 20 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 236 | $ 1,639 |
Weighted average interest rate | 1.53% | 1.53% |
Fixed Rate Amortizing Maturity from 1 Oct 19 to 30 Sep 20 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.53% | 1.53% |
Fixed Rate Amortizing Maturity from 1 Oct 19 to 30 Sep 20 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.53% | 1.53% |
Fixed Rate Amortizing Maturity from 1 Oct 20 to 30 Sep 21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 14,354 | $ 23,288 |
Weighted average interest rate | 2.70% | 2.70% |
Fixed Rate Amortizing Maturity from 1 Oct 20 to 30 Sep 21 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.94% | 1.94% |
Fixed Rate Amortizing Maturity from 1 Oct 20 to 30 Sep 21 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.83% | 2.83% |
Fixed Rate Amortizing Maturity from 1 Oct 21 to 30 Sep 22 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 8,729 | $ 11,848 |
Weighted average interest rate | 2.81% | 2.81% |
Fixed Rate Amortizing Maturity from 1 Oct 21 to 30 Sep 22 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.99% | 1.99% |
Fixed Rate Amortizing Maturity from 1 Oct 21 to 30 Sep 22 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.05% | 3.05% |
Fixed Rate Amortizing Maturity from 1 Oct 22 to 30 Sep 23 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 6,931 | $ 8,550 |
Weighted average interest rate | 2.88% | 2.88% |
Fixed Rate Amortizing Maturity from 1 Oct 22 to 30 Sep 23 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.94% | 1.94% |
Fixed Rate Amortizing Maturity from 1 Oct 22 to 30 Sep 23 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.11% | 3.11% |
Fixed Rate - Amortizing | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 30,250 | $ 45,325 |
Weighted average interest rate | 2.76% | 2.76% |
Fixed Rate Advances Maturity from 1 Oct 18 to 30 Sep 19 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 0 | $ 18,528 |
Weighted average interest rate | 1.75% | |
Fixed Rate Advances Maturity from 1 Oct 18 to 30 Sep 19 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.40% | |
Fixed Rate Advances Maturity from 1 Oct 18 to 30 Sep 19 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.66% | |
Fixed Rate Advances Maturity From 1 Oct 18 To 30 Sep 20 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 1.75% | |
Fixed Rate Advances Maturity From 1 Oct 18 To 30 Sep 20 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.40% | |
Fixed Rate Advances Maturity From 1 Oct 18 To 30 Sep 20 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.66% | |
Fixed Rate Advances Maturity from 1 Oct 19 to 30 Sep 20 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 12,304 | $ 12,413 |
Weighted average interest rate | 2.62% | |
Fixed Rate Advances Maturity from 1 Oct 19 to 30 Sep 20 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.38% | |
Fixed Rate Advances Maturity from 1 Oct 19 to 30 Sep 20 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.06% | |
Fixed Rate Advances Maturity From 1 Oct 19 To 30 Sep 21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.62% | |
Fixed Rate Advances Maturity From 1 Oct 19 To 30 Sep 21 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.38% | |
Fixed Rate Advances Maturity From 1 Oct 19 To 30 Sep 21 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.06% | |
Fixed Rate Advances Maturity from 1 Oct 20 to 30 Sep 21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 18,017 | $ 3,037 |
Weighted average interest rate | 2.37% | |
Fixed Rate Advances Maturity from 1 Oct 20 to 30 Sep 21 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.42% | |
Fixed Rate Advances Maturity from 1 Oct 20 to 30 Sep 21 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.92% | |
Fixed Rate Advances Maturity From 1 Oct 20 To 30 Sep 22 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.37% | |
Fixed Rate Advances Maturity From 1 Oct 20 To 30 Sep 22 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.42% | |
Fixed Rate Advances Maturity From 1 Oct 20 To 30 Sep 22 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.92% | |
Fixed Rate Advances Maturity from 1 Oct 21 to 30 Sep 22 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 63,336 | $ 23,380 |
Weighted average interest rate | 2.31% | |
Fixed Rate Advances Maturity from 1 Oct 21 to 30 Sep 22 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.94% | |
Fixed Rate Advances Maturity from 1 Oct 21 to 30 Sep 22 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.23% | |
Fixed Rate Advances Maturity From 1 Oct 21 To 30 Sep 23 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.31% | |
Fixed Rate Advances Maturity From 1 Oct 21 To 30 Sep 23 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 1.94% | |
Fixed Rate Advances Maturity From 1 Oct 21 To 30 Sep 23 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.23% | |
Fixed Rate Advances Maturity from 1 Oct 22 to 30 Sep 23 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 94,999 | $ 37,000 |
Weighted average interest rate | 2.52% | 2.52% |
Fixed Rate Advances Maturity from 1 Oct 22 to 30 Sep 23 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.00% | 2.00% |
Fixed Rate Advances Maturity from 1 Oct 22 to 30 Sep 23 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.15% | 3.15% |
Fixed Rate Advances Maturity from 1 Oct 23 to 30 Sep 24 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 67,998 | $ 5,000 |
Weighted average interest rate | 2.88% | 2.88% |
Fixed Rate Advances Maturity from 1 Oct 23 to 30 Sep 24 | Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.38% | 2.38% |
Fixed Rate Advances Maturity from 1 Oct 23 to 30 Sep 24 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.20% | 3.20% |
Long-term FHLB advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 256,654 | $ 99,358 |
Weighted average interest rate | 2.56% | 2.56% |
ADVANCES FROM FEDERAL HOME LO_8
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM - Summary of advances from the FHLB of Pittsburgh with coupon rates (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | ||
2020 | $ 26,714 | |
2021 | 28,078 | |
2022 | 67,328 | |
2023 | 96,785 | |
2024 | 67,999 | |
Advances from Federal Home Loan Bank - Long Term | $ 286,904 | $ 144,683 |
Weighted Average Coupon Rate | ||
2020 | 2.59% | |
2021 | 2.44% | |
2022 | 2.32% | |
2023 | 2.51% | |
2024 | 2.88% | |
Weighted Average Coupon Rate | 2.58% |
ADVANCES FROM FEDERAL HOME LO_9
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM - Additional Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Weighted Average Coupon Rate | 2.58% |
Additional FHLB advances | $ 193.3 |
Minimum | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Weighted Average Coupon Rate | 1.38% |
Maximum | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Weighted Average Coupon Rate | 3.23% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Current: | |||||||||||||||
Federal expense | $ 2,133 | $ 2,429 | $ 801 | ||||||||||||
State expense | 205 | ||||||||||||||
Total current taxes | 2,338 | 2,429 | 801 | ||||||||||||
Change in corporate tax rate | 0 | 1,756 | 0 | ||||||||||||
Deferred income tax (benefit) expense | (188) | 140 | |||||||||||||
Total | $ 799 | $ 582 | $ 380 | $ 429 | $ 142 | $ 676 | $ 619 | $ 2,264 | $ 711 | $ 1,031 | $ (1,171) | $ 370 | $ 2,150 | $ 3,701 | $ 941 |
INCOME TAXES - Items that gave
INCOME TAXES - Items that gave rise to significant portions of deferred income taxes (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 1,488 | $ 1,445 |
Nonaccrual interest | 487 | 312 |
Accrued vacation | 7 | 29 |
Capital loss carryforward | 121 | 356 |
Split dollar life insurance | 9 | 10 |
Post-retirement benefits | 76 | 85 |
Unrealized losses on available for sale securities | 0 | 2,212 |
Unrealized losses on interest rate swaps | 1,836 | 0 |
Deferred compensation | 809 | 838 |
Goodwill | 69 | 80 |
Other | 64 | 55 |
Employee benefit plans | 216 | 239 |
Total deferred tax assets | 5,182 | 5,661 |
Valuation allowance | (121) | (356) |
Total deferred tax assets, net of valuation allowance | 5,061 | 5,305 |
Deferred tax liabilities: | ||
Property | 141 | 179 |
Realized gain on equity securities | 19 | 0 |
Unrealized gains on available for sale securities | 2,153 | 0 |
Unrealized gains on interest rate swaps | 0 | 44 |
Purchase accounting adjustments | 215 | 59 |
Deferred loan fees | 175 | 368 |
Total deferred tax liabilities | 2,703 | 650 |
Net deferred tax assets | $ 2,358 | $ 4,655 |
INCOME TAXES - Income tax expen
INCOME TAXES - Income tax expense differs from that computed at the statutory federal corporate tax rate (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
INCOME TAXES | |||||||||||||||
Tax at statutory rate, amount | $ 2,453,000 | $ 2,611,000 | $ 1,265,000 | ||||||||||||
Adjustments resulting from: | |||||||||||||||
State tax expense | 162,000 | 0 | 0 | ||||||||||||
Change in corporate tax rate | 0 | 1,756,000 | 0 | ||||||||||||
Tax exempt income, amount | (313,000) | (77,000) | (109,000) | ||||||||||||
Nondeductible merger expenses, amount | 0 | 0 | (80,000) | ||||||||||||
Income from bank owned life insurance, amount | (135,000) | (155,000) | (230,000) | ||||||||||||
Employee benefit plans | (27,000) | (134,000) | (39,000) | ||||||||||||
Other, amount | 10,000 | (300,000) | (26,000) | ||||||||||||
Total | $ 799,000 | $ 582,000 | $ 380,000 | $ 429,000 | $ 142,000 | $ 676,000 | $ 619,000 | $ 2,264,000 | $ 711,000 | $ 1,031,000 | $ (1,171,000) | $ 370,000 | $ 2,150,000 | $ 3,701,000 | $ 941,000 |
Adjustments resulting from: | |||||||||||||||
State tax expense, percentage of pretax income (Loss) | 1.30% | ||||||||||||||
Change in corporate tax rate, percentage of pretax income (Loss) | 0.00% | 16.20% | 0.00% | ||||||||||||
Tax at statutory rate, percentage of pretax income (Loss) | 21.00% | 24.30% | 34.00% | ||||||||||||
Tax exempt income, percentage of pretax income (Loss) | (2.70%) | (0.70%) | (2.90%) | ||||||||||||
Nondeductible merger expenses, percentage of pretax income (Loss) | 0.00% | 0.00% | 2.10% | ||||||||||||
Income from bank owned life insurance, percentage of pretax income (Loss) | (1.10%) | (1.40%) | (6.20%) | ||||||||||||
Employee benefit plans, percentage of pretax income (Loss) | (0.20%) | (1.20%) | (1.10%) | ||||||||||||
Other, percentage of pretax income (Loss) | 0.10% | (2.90%) | (0.60%) | ||||||||||||
Income tax expense, percentage of pretax income (Loss) | 18.40% | 34.30% | 25.30% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Taxes [Line Items] | |||
Valuation allowance | $ (121) | $ (356) | |
Tax at statutory rate | 21.00% | 24.30% | 34.00% |
Previous year | |||
Income Taxes [Line Items] | |||
Tax at statutory rate | 34.00% | ||
Current year | |||
Income Taxes [Line Items] | |||
Tax at statutory rate | 21.00% |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Prudential Bancorp, Inc of Pennsylvania | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Actual Amount, Tier 1 capital (to average assets) | $ 131,859 | $ 129,890 |
Actual Ratio, Tier 1 capital (to average assets) | 10.89% | 12.51% |
Actual Amount, Tier 1 Common (to risk-weighted assets) | $ 131,859 | $ 129,890 |
Actual Ratio, Tier 1 Common (to risk-weighted assets) | 18.43% | 19.74% |
Actual Amount, Tier 1 capital (to risk-weighted assets) | $ 131,859 | $ 129,890 |
Actual Ratio, Tier 1 capital (to risk-weighted assets) | 18.43% | 19.74% |
Actual Amount, Total capital (to risk-weighted assets) | $ 137,842 | $ 135,374 |
Actual Ratio, Total capital (to risk-weighted assets) | 19.27% | 20.58% |
Prudential Savings Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Actual Amount, Tier 1 capital (to average assets) | $ 129,486 | $ 123,199 |
Actual Amount, Required for Capital Adequacy Purposes Amount, Tier 1 capital (to average assets) | 49,386 | 41,542 |
Actual Amount, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount, Tier 1 capital (to average assets) | $ 61,732 | $ 51,928 |
Actual Ratio, Tier 1 capital (to average assets) | 10.49% | 11.86% |
Actual Ratio, Required for Capital Adequacy Purposes Ratio, Tier 1 capital (to average assets) | 4.00% | 4.00% |
Actual Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio, Tier 1 capital (to average assets) | 5.00% | 5.00% |
Actual Amount, Tier 1 Common (to risk-weighted assets) | $ 129,486 | $ 123,199 |
Actual Amount, Required for Capital Adequacy Purposes, Tier 1 Common (to risk-weighted assets) | 32,190 | 29,603 |
Actual Amount, To Be Well Capitalized Under Prompt Corrective Action Provisions, Tier 1 Common (to risk-weighted assets) | $ 46,497 | $ 42,759 |
Actual Ratio, Tier 1 Common (to risk-weighted assets) | 18.10% | 18.73% |
Actual Ratio, Required for Capital Adequacy Purposes, Tier 1 Common (to risk-weighted assets) | 4.50% | 4.50% |
Actual Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions, Tier 1 Common (to risk-weighted assets) | 6.50% | 6.50% |
Actual Amount, Tier 1 capital (to risk-weighted assets) | $ 129,486 | $ 123,199 |
Actual Amount, Required for Capital Adequacy Purposes Amount, Tier 1 capital (to risk-weighted assets) | 28,613 | 26,313 |
Actual Amount, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount, Tier 1 capital (to risk-weighted assets) | $ 42,920 | $ 39,470 |
Actual Ratio, Tier 1 capital (to risk-weighted assets) | 18.10% | 18.73% |
Actual Ratio, Required for Capital Adequacy Purposes Ratio, Tier 1 capital (to risk-weighted assets) | 6.00% | 6.00% |
Actual Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio, Tier 1 capital (to risk-weighted assets) | 8.00% | 8.00% |
Actual Amount, Total capital (to risk-weighted assets) | $ 135,469 | $ 128,683 |
Actual Amount, Required for Capital Adequacy Purposes Amount, Total capital (to risk-weighted assets) | 57,227 | 52,627 |
Actual Amount, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount, Total capital (to risk-weighted assets) | $ 71,534 | $ 65,783 |
Actual Ratio, Total capital (to risk-weighted assets) | 18.94% | 19.56% |
Actual Ratio, Required for Capital Adequacy Purposes Ratio, Total capital (to risk-weighted assets) | 8.00% | 8.00% |
Actual Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio, Total capital (to risk-weighted assets) | 10.00% | 10.00% |
EMPLOYEE BENEFITS - Multi-emplo
EMPLOYEE BENEFITS - Multi-employer defined benefit pension plan (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Multi-employer defined benefit pension plan | |||
Multiemployer Plans [Line Items] | |||
Expense relating to plan | $ 632,000 | $ 441,000 | $ 379,000 |
EMPLOYEE BENEFITS - Additional
EMPLOYEE BENEFITS - Additional information regarding the plan (Details) - Multi-employer defined benefit pension plan - Pentegram Defined Benefit Plan For Financial Institutions | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Multiemployer Plans [Line Items] | |
Plan Employer Identification Number | 13-5645888 |
The Company's Contribution for the year ended September 30, 2019 | $ 632,000 |
Are Company's Contributions more than 5% of total contributions? | No |
Funded Status | 85.86% |
EMPLOYEE BENEFITS - Expense Rel
EMPLOYEE BENEFITS - Expense Relating to Plan (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
ESOP shares allocated to participant's accounts | 8,879 | ||
Compensation expense of ESOP | $ 152,000 | ||
Pentegram Defined Benefit Plan For Financial Institutions | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Bank defined contribution plan, expense | $ 126,000 | $ 102,000 | 0 |
Employee stock ownership plan ("ESOP") | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Compensation expense of ESOP | $ 0 | $ 0 | $ 152,000 |
EMPLOYEE BENEFITS - 2008 RRP an
EMPLOYEE BENEFITS - 2008 RRP and 2014 SIP (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Aug. 31, 2016 | Feb. 28, 2015 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of vesting per year | 20.00% | ||||||
Vesting period of awards granted | 5 years | ||||||
2008 Recognition and Retention Plan ("2008 RRP") | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares purchased by RRP trust | 213,528 | ||||||
Value of shares purchased in open market by RRP trust | $ 2,500,000 | ||||||
Average price per share of common stock purchased in the open market | $ 11.49 | ||||||
Number of shares granted | 8,209 | 7,473 | |||||
Recognized compensation expense | $ 620,000 | $ 565,000 | $ 578,000 | ||||
Unrecognized compensation expense for shares awarded | $ 713,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 4 months 24 days | ||||||
2014 Stock Incentive Plan (the "2014 SIP") | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted | 18,291 | 17,128 | 3,027 | ||||
2014 Stock Incentive Plan (the "2014 SIP") | Restricted stock awards or units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum number of shares awarded under the plan | 285,655 | ||||||
Number of shares granted | 233,500 |
EMPLOYEE BENEFITS - Summary of
EMPLOYEE BENEFITS - Summary of non-vested stock award activity (Details) - 2008 Recognition and Retention Plan ("2008 RRP") - $ / shares | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Aug. 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Number of Shares | |||||
Issued | 8,209 | 7,473 | |||
Non-vested stock awards | |||||
Number of Shares | |||||
Non-vested stock awards at beginning of year | 116,916 | 142,594 | 172,788 | ||
Issued | 26,500 | 17,128 | |||
Forfeited | (1,812) | (5,243) | (1,467) | ||
Vested | (46,124) | (46,935) | (45,855) | ||
Non-vested stock awards at the end of the period | 68,980 | 116,916 | 142,594 | ||
Weighted Average Grant Date Fair Value | |||||
Nonvested stock awards at beginning of year | $ 14.36 | $ 12.79 | $ 12.03 | ||
Issued | 18.46 | 17.43 | |||
Forfeited | 12.43 | 11.91 | 10.47 | ||
Vested | 13.43 | 12.16 | 11.72 | ||
Non-vested stock awards at the end of the period | $ 15.05 | $ 14.36 | $ 12.79 |
EMPLOYEE BENEFITS - Summary o_2
EMPLOYEE BENEFITS - Summary of status of stock options under Option Plan and 2014 SIP (Details) - Stock Options - $ / shares | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | May 31, 2017 | Aug. 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
2008 Stock Option Plan (the "2008 Option Plan") | ||||||
Number of Shares | ||||||
Options outstanding at beginning of year | 869,026 | 922,564 | 921,909 | |||
Granted | 18,235 | 283 | 18,866 | |||
Outstanding at the end of the period | 793,034 | 869,026 | 922,564 | |||
Weighted Average Exercise Price | ||||||
Options outstanding at beginning of year | $ 13.41 | $ 12.04 | $ 11.70 | |||
Outstanding at the end of the period | $ 13.86 | $ 13.41 | $ 12.04 | |||
Option Plan and 2014 SIP | ||||||
Number of Shares | ||||||
Options outstanding at beginning of year | 869,026 | 922,564 | 921,909 | |||
Granted | 39,702 | 177,500 | 47,828 | |||
Exercised | (109,694) | (216,796) | (43,890) | |||
Forfeited | (6,000) | (14,242) | (3,283) | |||
Outstanding at the end of the period | 793,034 | 869,026 | 922,564 | |||
Exercisable at the end of the period | 489,288 | 451,899 | 554,802 | |||
Weighted Average Exercise Price | ||||||
Options outstanding at beginning of year | $ 13.41 | $ 12.04 | $ 11.70 | |||
Granted | 18.16 | 18.46 | 17.92 | |||
Exercised | 11.91 | 11.76 | 11.41 | |||
Forfeited | 12.23 | 11.90 | 11.84 | |||
Outstanding at the end of the period | 13.86 | 13.41 | 12.04 | |||
Exercisable at the end of the period | $ 12.21 | $ 11.45 | $ 11.47 |
EMPLOYEE BENEFITS - Stock Optio
EMPLOYEE BENEFITS - Stock Options - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||||||
Jul. 31, 2019 | Mar. 31, 2018 | May 31, 2017 | Mar. 31, 2017 | Aug. 31, 2016 | Feb. 28, 2015 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2010 | Sep. 30, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Vesting period of options | 5 years | ||||||||||||||
Stock Options | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Estimated fair value of options granted per share | $ 3.38 | $ 3.63 | $ 3.18 | $ 2.13 | $ 4.58 | $ 4.67 | $ 3.34 | $ 2.92 | $ 2.98 | ||||||
Fair value, valuation method | Black-Scholes pricing model | Black-Scholes pricing model | Black-Scholes pricing model | ||||||||||||
Exercise price and fair value | $ 18.16 | $ 18.46 | $ 17.43 | ||||||||||||
Expected term | 7 years | 7 years | 7 years | ||||||||||||
Volatility rate | 17.76% | 15.90% | 14.37% | ||||||||||||
Expected interest rate | 1.87% | 2.82% | 2.22% | ||||||||||||
Expected yield | 1.10% | 1.08% | 0.69% | ||||||||||||
Stock Options | 2008 Stock Option Plan (the "2008 Option Plan") | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Percentage of vesting and exercisable per year | 20.00% | ||||||||||||||
Vesting period of options | 5 years | ||||||||||||||
Exercisable period of options after grant date | 10 years | ||||||||||||||
Number of common stock available for issuance | 533,808 | ||||||||||||||
Weighted average remaining contractual term for options outstanding | 6 years 1 month 6 days | ||||||||||||||
Unrecognized compensation expense for options | $ 1,100,000 | ||||||||||||||
Weighted average period for recognition of nonvested awards | 2 years 9 months 18 days | ||||||||||||||
Number of options awarded | 18,235 | 283 | 18,866 | ||||||||||||
Stock Options | 2014 Stock Incentive Plan (the "2014 SIP") | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of common stock available for issuance | 714,145 | ||||||||||||||
Number of options awarded | 39,702 | 159,265 | 25,000 | 22,828 | 8,634 | 605,000 | |||||||||
Stock Options | Option Plan and 2014 SIP | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Recognized compensation expense | $ 573,000 | $ 540,000 | $ 531,000 | ||||||||||||
Number of options awarded | 39,702 | 177,500 | 47,828 |
INTEREST RATE SWAP AGREEMENTS -
INTEREST RATE SWAP AGREEMENTS - Summary of interest rate swap agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
INTEREST RATE SWAP AGREEMENTS | ||
Unrealized Gain (Loss) | $ (11,241) | $ 211 |
FHLB Advance | ||
INTEREST RATE SWAP AGREEMENTS | ||
Notional amount | $ 10,000 | $ 10,000 |
Receive rate | 1 Mth Libor | 1 Mth Libor |
Maturity date | Apr. 10, 2025 | Apr. 10, 2025 |
Unrealized Gain (Loss) | $ (719) | $ 129 |
FHLB Advance | Minimum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 2.70% | 2.70% |
FHLB Advance | Maximum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 2.70% | 2.70% |
State and political subdivisions | ||
INTEREST RATE SWAP AGREEMENTS | ||
Notional amount | $ 21,570 | $ 21,570 |
Receive rate | 3 Mth Libor | 3 Mth Libor |
Maturity date | May 1, 2028 | May 1, 2028 |
Unrealized Gain (Loss) | $ (2,502) | $ 82 |
State and political subdivisions | Minimum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 3.06% | 3.06% |
State and political subdivisions | Maximum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 3.07% | 3.07% |
Commercial loans | ||
INTEREST RATE SWAP AGREEMENTS | ||
Notional amount | $ 17,339 | $ 9,400 |
Receive rate | 1 Mth Libor +225 to 276 bp | 1 Mth Libor +250 to 276 bp |
Maturity date | Aug. 1, 2026 | Aug. 1, 2026 |
Commercial loans | Minimum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 4.10% | 4.10% |
Commercial loans | Maximum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 5.74% | 5.74% |
30 day wholesale funding | ||
INTEREST RATE SWAP AGREEMENTS | ||
Notional amount | $ 65,000 | |
Receive rate | 1 Mth Libor | |
Maturity date | Jun. 12, 2026 | |
Unrealized Gain (Loss) | $ (1,415) | |
30 day wholesale funding | Minimum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 1.94% | |
30 day wholesale funding | Maximum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 2.51% | |
90 day wholesale funding | ||
INTEREST RATE SWAP AGREEMENTS | ||
Notional amount | $ 135,000 | |
Receive rate | 3 Mth Libor | |
Maturity date | Mar. 27, 2024 | |
Unrealized Gain (Loss) | $ (6,605) | |
90 day wholesale funding | Minimum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 2.51% | |
90 day wholesale funding | Maximum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 2.78% |
INTEREST RATE SWAP AGREEMENTS_2
INTEREST RATE SWAP AGREEMENTS - Additional Information (Details) | 12 Months Ended | |
Sep. 30, 2019USD ($)securityloanitem | Sep. 30, 2018USD ($)securityloan | |
INTEREST RATE SWAP AGREEMENTS | ||
Income tax recognized as ineffectiveness | $ | $ 12,000 | $ 48,000 |
Number of interest rate swaps | item | 9 | |
Number of loans | loan | 3 | 3 |
Number of investment securities | security | 7 | 7 |
Additional number of interest rate swaps | item | 1 | |
Interest rate swap contract one | ||
INTEREST RATE SWAP AGREEMENTS | ||
Number of 30 day FHLB advances | loan | 7 | 1 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | $ 1,400 | |
Aggregate undisbursed portion of loans-in-process | 114,528 | $ 54,474 |
Loan Origination Commitments | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | 32,400 | 40,400 |
Aggregate undisbursed portion of loans-in-process | $ 114,500 | $ 54,500 |
Loan Origination Commitments | Minimum | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Market interest rate on fixed and variable rate loans | 1.99% | 4.25% |
Loan Origination Commitments | Maximum | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Market interest rate on fixed and variable rate loans | 6.50% | 6.25% |
Unused lines of Credit | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | $ 37,500 | $ 51,900 |
Letters of Credit | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | $ 1,500 | $ 1,600 |
FAIR VALUE MEASUREMENT - Assets
FAIR VALUE MEASUREMENT - Assets measured at fair value on recurring basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Assets: | ||
Assets, Total | $ 512,917 | $ 306,398 |
Liabilities: | ||
Liabilities, Total | 11,241 | |
Level 1 | ||
Assets: | ||
Assets, Total | 95 | 37 |
Level 2 | ||
Assets: | ||
Assets, Total | 512,822 | 306,361 |
Liabilities: | ||
Liabilities, Total | 11,241 | |
U.S. Government and agency obligations | ||
Assets: | ||
Assets, Total | 24,865 | 24,171 |
U.S. Government and agency obligations | Level 2 | ||
Assets: | ||
Assets, Total | 24,865 | 24,171 |
State and political subdivisions | ||
Assets: | ||
Assets, Total | 47,646 | 21,536 |
State and political subdivisions | Level 2 | ||
Assets: | ||
Assets, Total | 47,646 | 21,536 |
Mortgage-backed securities - US government agencies | ||
Assets: | ||
Assets, Total | 370,772 | 187,360 |
Mortgage-backed securities - US government agencies | Level 2 | ||
Assets: | ||
Assets, Total | 370,772 | 187,360 |
Corporate bonds | ||
Assets: | ||
Assets, Total | 69,539 | 73,083 |
Corporate bonds | Level 2 | ||
Assets: | ||
Assets, Total | 69,539 | 73,083 |
Equity securities | ||
Assets: | ||
Assets, Total | 95 | |
Equity securities | Level 1 | ||
Assets: | ||
Assets, Total | 95 | |
FHLMC preferred stock | ||
Assets: | ||
Assets, Total | 37 | |
FHLMC preferred stock | Level 1 | ||
Assets: | ||
Assets, Total | 37 | |
Interest rate swap contracts | ||
Assets: | ||
Assets, Total | 211 | |
Liabilities: | ||
Liabilities, Total | 11,241 | |
Interest rate swap contracts | Level 2 | ||
Assets: | ||
Assets, Total | $ 211 | |
Liabilities: | ||
Liabilities, Total | $ 11,241 |
FAIR VALUE MEASUREMENT - Change
FAIR VALUE MEASUREMENT - Changes in level 3 assets measured at fair value (Details) - Fair value measurements on a nonrecurring basis - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
FAIR VALUE MEASUREMENT | ||
Impaired loans | $ 15,542 | $ 16,048 |
Real estate owned | 348 | 1,026 |
Total | 15,890 | 17,074 |
Level 1 | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans | 0 | 0 |
Real estate owned | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans | 0 | 0 |
Real estate owned | 0 | 0 |
Total | 0 | 0 |
Level 3 | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans | 15,542 | 16,048 |
Real estate owned | 348 | 1,026 |
Total | $ 15,890 | $ 17,074 |
FAIR VALUE MEASUREMENT - Valuat
FAIR VALUE MEASUREMENT - Valuation processes used to determine nonrecurring fair value measurements categorized within level 3 (Details) - Fair value measurements on a nonrecurring basis $ in Thousands | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
FAIR VALUE MEASUREMENT | ||
Impaired loans | $ 15,542 | $ 16,048 |
Real estate owned | 348 | 1,026 |
Level 3 | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans | 15,542 | 16,048 |
Real estate owned | $ 348 | $ 1,026 |
Impaired loan | Level 3 | Management discount for selling costs, property type and market volatility | Property appraisals | Minimum | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans measurement input (in percent) | 6 | 6 |
Impaired loan | Level 3 | Management discount for selling costs, property type and market volatility | Property appraisals | Maximum | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans measurement input (in percent) | 9 | 8 |
Impaired loan | Level 3 | Management discount for selling costs, property type and market volatility | Property appraisals | Weighted average | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans measurement input (in percent) | 7 | 6 |
Real estate owned | Level 3 | Management discount for selling costs, property type and market volatility | Property appraisals | Weighted average | ||
FAIR VALUE MEASUREMENT | ||
Real estate owned measurement input (in percent) | 22 | 18 |
FAIR VALUE MEASUREMENT - Asse_2
FAIR VALUE MEASUREMENT - Assets measured at fair value on a non-recurring basis and the adjustments to the carrying value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Assets: | ||
Cash and cash equivalents | $ 47,968 | $ 48,171 |
Certificates of deposit | 2,351 | 1,604 |
Investment and mortgage-backed securities available for sale | 512,822 | 306,187 |
Investment and mortgage-backed securities held to maturity | 68,635 | 59,852 |
Equity securities | 95 | |
Loans receivable, net | 585,456 | 602,932 |
Accrued interest receivable | 4,549 | 3,825 |
Bank owned life insurance | 31,841 | 28,691 |
Restricted stock | 16,406 | 7,585 |
Liabilities: | ||
Passbook, club and statement savings accounts | 80,899 | 91,489 |
Certificates of deposit | 513,183 | |
Advances from FHLB short-term | 90,000 | 10,000 |
Advances from FHLB long-term | 286,904 | 144,683 |
Accrued interest payable | 4,328 | 3,232 |
Advances from borrowers for taxes and insurance | 2,332 | 2,083 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 47,968 | 48,171 |
Certificates of deposit | 2,351 | 1,604 |
Investment and mortgage-backed securities available for sale | 512,822 | 306,187 |
Investment and mortgage-backed securities held to maturity | 68,635 | 59,852 |
Equity securities | 95 | |
Loans receivable, net | 585,456 | 602,932 |
Accrued interest receivable | 4,549 | 3,825 |
Interest rate swap contracts | 225 | |
Bank owned life insurance | 31,841 | 28,691 |
Restricted stock | 16,406 | 7,585 |
Liabilities: | ||
Checking accounts | 75,596 | 62,886 |
Money market deposit accounts | 75,766 | 60,686 |
Passbook, club and statement savings accounts | 80,899 | 96,866 |
Certificates of deposit | 513,183 | 563,820 |
Advances from FHLB short-term | 90,000 | 10,000 |
Advances from FHLB long-term | 286,904 | 144,683 |
Accrued interest payable | 4,328 | 3,232 |
Advances from borrowers for taxes and insurance | 2,332 | 2,083 |
Interest rate swap contracts | 11,241 | |
Fair Value | ||
Assets: | ||
Cash and cash equivalents | 47,968 | 48,171 |
Certificates of deposit | 2,351 | 1,604 |
Investment and mortgage-backed securities available for sale | 512,822 | 306,187 |
Investment and mortgage-backed securities held to maturity | 69,507 | 55,927 |
Equity securities | 95 | |
Loans receivable, net | 585,476 | 598,596 |
Accrued interest receivable | 4,549 | 3,825 |
Interest rate swap contracts | 225 | |
Bank owned life insurance | 31,841 | 28,691 |
Restricted stock | 16,406 | 7,585 |
Liabilities: | ||
Checking accounts | 75,596 | 62,886 |
Money market deposit accounts | 75,766 | 60,686 |
Passbook, club and statement savings accounts | 80,899 | 96,866 |
Certificates of deposit | 529,099 | 569,375 |
Advances from FHLB short-term | 90,000 | 10,000 |
Advances from FHLB long-term | 293,839 | 141,116 |
Accrued interest payable | 4,328 | 3,232 |
Advances from borrowers for taxes and insurance | 2,332 | 2,083 |
Interest rate swap contracts | 11,241 | |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | 47,968 | 48,171 |
Certificates of deposit | 2,351 | 1,604 |
Investment and mortgage-backed securities available for sale | 0 | 37 |
Investment and mortgage-backed securities held to maturity | 0 | 0 |
Equity securities | 95 | |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 4,549 | 3,825 |
Interest rate swap contracts | 0 | |
Bank owned life insurance | 31,841 | 28,691 |
Restricted stock | 16,406 | 7,585 |
Liabilities: | ||
Checking accounts | 75,596 | 62,886 |
Money market deposit accounts | 75,766 | 60,686 |
Passbook, club and statement savings accounts | 80,899 | 96,866 |
Certificates of deposit | 0 | 0 |
Advances from FHLB short-term | 90,000 | 10,000 |
Advances from FHLB long-term | 0 | 0 |
Accrued interest payable | 4,328 | 3,232 |
Advances from borrowers for taxes and insurance | 2,332 | 2,083 |
Interest rate swap contracts | 0 | |
Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit | 0 | 0 |
Investment and mortgage-backed securities available for sale | 512,822 | 306,150 |
Investment and mortgage-backed securities held to maturity | 69,507 | 55,927 |
Equity securities | 0 | |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Interest rate swap contracts | 225 | |
Bank owned life insurance | 0 | 0 |
Restricted stock | 0 | 0 |
Liabilities: | ||
Checking accounts | 0 | 0 |
Money market deposit accounts | 0 | 0 |
Passbook, club and statement savings accounts | 0 | 0 |
Certificates of deposit | 0 | 0 |
Advances from FHLB short-term | 0 | 0 |
Advances from FHLB long-term | 0 | 0 |
Accrued interest payable | 0 | 0 |
Advances from borrowers for taxes and insurance | 0 | 0 |
Interest rate swap contracts | 11,241 | |
Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit | 0 | 0 |
Investment and mortgage-backed securities available for sale | 0 | 0 |
Investment and mortgage-backed securities held to maturity | 0 | 0 |
Equity securities | 0 | |
Loans receivable, net | 585,476 | 598,596 |
Accrued interest receivable | 0 | 0 |
Interest rate swap contracts | 0 | |
Bank owned life insurance | 0 | 0 |
Restricted stock | 0 | 0 |
Liabilities: | ||
Checking accounts | 0 | 0 |
Money market deposit accounts | 0 | 0 |
Passbook, club and statement savings accounts | 0 | 0 |
Certificates of deposit | 529,099 | 569,375 |
Advances from FHLB short-term | 0 | 0 |
Advances from FHLB long-term | 293,839 | 141,116 |
Accrued interest payable | 0 | 0 |
Advances from borrowers for taxes and insurance | 0 | $ 0 |
Interest rate swap contracts | $ 0 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Sep. 30, 2018 |
Level 2 | ||
FAIR VALUE MEASUREMENT | ||
Collateral dependent impaired loans, fair value | $ 15.5 | $ 14.3 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Related to acquisition of Polonia Bancorp (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill | |||
Balance, Goodwill | $ 6,102 | ||
Balance, Goodwill | 6,102 | $ 6,102 | |
Core deposit intangible | |||
Balance | 571 | ||
Balance | 448 | 571 | |
GOODWILL AND OTHER INTANGIBLE ASSETS, Total | |||
Amortization | (123) | (138) | $ (112) |
Polonia Bancorp | |||
Goodwill | |||
Balance, Goodwill | 6,102 | ||
Additions/Adjustments | 0 | ||
Balance, Goodwill | 6,102 | 6,102 | |
GOODWILL AND OTHER INTANGIBLE ASSETS, Total | |||
Balance, Total | 6,673 | ||
Additions/Adjustments | 0 | ||
Amortization | (123) | ||
Balance, Total | 6,550 | 6,673 | |
Polonia Bancorp | Core deposit intangible | |||
Core deposit intangible | |||
Balance | 571 | ||
Additions/Adjustments | 0 | ||
Amortization | (123) | ||
Balance | $ 448 | $ 571 | |
Amortization Period | 10 years |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Future fiscal periods amortization expense (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
2020 | $ 108 | |
2021 | 93 | |
2022 | 78 | |
2023 | 64 | |
2024 | 49 | |
Thereafter | 56 | |
Total | $ 448 | $ 571 |
PRUDENTIAL BANCORP, INC. (PAR_3
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) - STATEMENT OF FINANCIAL CONDITION (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Assets: | ||||
Cash | $ 47,968 | $ 48,171 | ||
Total assets | 1,289,434 | 1,081,170 | ||
Stockholders' equity: | ||||
Preferred stock | ||||
Common stock | 108 | 108 | ||
Additional paid-in capital | 118,384 | 118,345 | ||
Treasury stock | (29,698) | (27,744) | ||
Retained earnings | 49,625 | 45,854 | ||
Accumulated other comprehensive income (loss) | 1,192 | (8,154) | ||
Total stockholders' equity | 139,611 | 128,409 | $ 136,179 | $ 114,002 |
PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA | ||||
Assets: | ||||
Cash | 1,004 | 5,435 | ||
Investment in Bank | 137,238 | 121,718 | ||
Other assets | 1,369 | 1,256 | ||
Total assets | 139,611 | 128,409 | ||
Stockholders' equity: | ||||
Common stock | 108 | 108 | ||
Additional paid-in capital | 118,384 | 118,345 | ||
Treasury stock | (29,698) | (27,744) | ||
Retained earnings | 49,625 | 45,854 | ||
Accumulated other comprehensive income (loss) | 1,192 | (8,154) | ||
Total stockholders' equity | $ 139,611 | $ 128,409 |
PRUDENTIAL BANCORP, INC. (PAR_4
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) - INCOME STATEMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) | |||||||||||||||
Interest on ESOP loan | $ 26,737 | $ 25,367 | $ 20,107 | ||||||||||||
Total income | $ 11,631 | $ 11,273 | $ 11,134 | $ 10,001 | $ 9,529 | $ 8,931 | $ 8,355 | $ 8,036 | $ 7,737 | $ 7,430 | $ 6,671 | $ 4,505 | 44,040 | 34,851 | 26,343 |
Professional services | 1,460 | 1,866 | 1,433 | ||||||||||||
Other expense | 2,162 | 1,991 | 2,210 | ||||||||||||
Total expense | 3,696 | 4,190 | 4,146 | 3,992 | 3,957 | 3,770 | 3,869 | 4,043 | 3,587 | 3,500 | 6,763 | 2,720 | 16,065 | 15,639 | 16,566 |
Income before income taxes | 3,386 | 3,212 | 2,719 | 2,403 | 2,579 | 3,112 | 2,776 | 2,298 | 2,783 | 3,148 | (3,312) | 1,100 | 11,680 | 10,765 | 3,719 |
Income tax benefit | 799 | 582 | 380 | 429 | 142 | 676 | 619 | 2,264 | 711 | 1,031 | (1,171) | 370 | 2,150 | 3,701 | 941 |
Net income | $ 2,587 | $ 2,630 | $ 2,339 | $ 1,974 | $ 2,437 | $ 2,436 | $ 2,157 | $ 34 | $ 2,072 | $ 2,117 | $ (2,141) | $ 730 | 9,530 | 7,064 | 2,778 |
PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA | |||||||||||||||
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) | |||||||||||||||
Interest on ESOP loan | 59 | ||||||||||||||
Equity in the undistributed earnings of the Bank | 9,954 | 7,465 | 3,255 | ||||||||||||
Total income | 9,954 | 7,465 | 3,314 | ||||||||||||
Professional services | 168 | 168 | 369 | ||||||||||||
Other expense | 369 | 362 | 413 | ||||||||||||
Total expense | 537 | 530 | 782 | ||||||||||||
Income before income taxes | 9,417 | 6,936 | 2,532 | ||||||||||||
Income tax benefit | (113) | (128) | (246) | ||||||||||||
Net income | $ 9,530 | $ 7,064 | $ 2,778 |
PRUDENTIAL BANCORP, INC. (PAR_5
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) - CASH FLOWS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities: | |||||||||||||||
Net income | $ 2,587 | $ 2,630 | $ 2,339 | $ 1,974 | $ 2,437 | $ 2,436 | $ 2,157 | $ 34 | $ 2,072 | $ 2,117 | $ (2,141) | $ 730 | $ 9,530 | $ 7,064 | $ 2,778 |
Investing activities: | |||||||||||||||
Acquisitions, net of cash | 3,966 | ||||||||||||||
Financing Activities: | |||||||||||||||
Purchase treasury stock | (3,108) | (2,548) | (6,272) | ||||||||||||
Cash dividends paid | (5,784) | (6,300) | (1,035) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (203) | 20,268 | 15,463 | ||||||||||||
CASH AND CASH EQUIVALENTS-Beginning of year | 48,171 | 27,903 | 12,440 | 48,171 | 27,903 | 12,440 | |||||||||
CASH AND CASH EQUIVALENTS-End of year | 47,968 | 48,171 | 27,903 | 47,968 | 48,171 | 27,903 | |||||||||
PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA | |||||||||||||||
Operating activities: | |||||||||||||||
Net income | 9,530 | 7,064 | 2,778 | ||||||||||||
Other, net | (115) | (108) | 46 | ||||||||||||
Equity in the undistributed earnings of the Bank | (9,954) | (7,465) | (3,255) | ||||||||||||
Net cash used in operating activities | (539) | (509) | (431) | ||||||||||||
Investing activities: | |||||||||||||||
Repayments received on ESOP loan | 5,277 | ||||||||||||||
Acquisitions, net of cash | 3,966 | ||||||||||||||
Net cash provided by investing activities | 9,243 | ||||||||||||||
Financing Activities: | |||||||||||||||
Purchase treasury stock | (3,108) | (2,548) | (4,526) | ||||||||||||
Cash dividends paid | (5,784) | (6,300) | (1,035) | ||||||||||||
Dividends from the Bank | 5,000 | 5,000 | |||||||||||||
Net cash used in financing activities | (3,892) | (3,848) | (5,561) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (4,431) | (4,357) | 3,251 | ||||||||||||
CASH AND CASH EQUIVALENTS-Beginning of year | $ 5,435 | $ 9,792 | $ 6,541 | 5,435 | 9,792 | 6,541 | |||||||||
CASH AND CASH EQUIVALENTS-End of year | $ 1,004 | $ 5,435 | $ 9,792 | $ 1,004 | $ 5,435 | $ 9,792 |
CONSOLIDATED QUARTERLY FINANC_3
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||
Interest income | $ 11,631 | $ 11,273 | $ 11,134 | $ 10,001 | $ 9,529 | $ 8,931 | $ 8,355 | $ 8,036 | $ 7,737 | $ 7,430 | $ 6,671 | $ 4,505 | $ 44,040 | $ 34,851 | $ 26,343 |
Interest expense | 5,434 | 5,058 | 4,811 | 3,986 | 3,401 | 2,709 | 2,127 | 1,900 | 1,656 | 1,377 | 1,373 | 858 | 19,289 | 10,137 | 5,266 |
NET INTEREST INCOME | 6,197 | 6,215 | 6,323 | 6,015 | 6,128 | 6,222 | 6,228 | 6,136 | 6,081 | 6,053 | 5,298 | 3,647 | 24,751 | 24,714 | 21,077 |
(Recoveries) Provision for loan losses | 100 | 0 | 0 | 0 | 125 | 325 | 150 | 210 | 410 | 30 | 2,365 | 185 | 100 | 810 | 2,990 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 6,097 | 6,215 | 6,323 | 6,015 | 6,003 | 5,897 | 6,078 | 5,926 | 5,671 | 6,023 | 2,933 | 3,462 | 24,651 | 23,904 | 18,087 |
Non-interest income | 985 | 1,187 | 542 | 380 | 533 | 985 | 567 | 415 | 699 | 625 | 518 | 358 | 3,094 | 2,500 | 2,198 |
Non-interest expense | 3,696 | 4,190 | 4,146 | 3,992 | 3,957 | 3,770 | 3,869 | 4,043 | 3,587 | 3,500 | 6,763 | 2,720 | 16,065 | 15,639 | 16,566 |
INCOME BEFORE INCOME TAXES | 3,386 | 3,212 | 2,719 | 2,403 | 2,579 | 3,112 | 2,776 | 2,298 | 2,783 | 3,148 | (3,312) | 1,100 | 11,680 | 10,765 | 3,719 |
Income tax expense | 799 | 582 | 380 | 429 | 142 | 676 | 619 | 2,264 | 711 | 1,031 | (1,171) | 370 | 2,150 | 3,701 | 941 |
NET INCOME | $ 2,587 | $ 2,630 | $ 2,339 | $ 1,974 | $ 2,437 | $ 2,436 | $ 2,157 | $ 34 | $ 2,072 | $ 2,117 | $ (2,141) | $ 730 | $ 9,530 | $ 7,064 | $ 2,778 |
Per share: | |||||||||||||||
Earnings (loss) per share - basic (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.22 | $ 0.27 | $ 0.28 | $ 0.24 | $ 0 | $ 0.26 | $ 0.25 | $ (0.27) | $ 0.09 | $ 1.09 | $ 0.80 | $ 0.33 |
Earnings (loss) per share - diluted (in dollars per share) | 0.29 | 0.29 | 0.26 | 0.22 | 0.26 | 0.26 | 0.24 | 0 | 0.24 | 0.25 | (0.27) | 0.09 | 1.07 | 0.78 | 0.32 |
Dividends per share (in dollars per share) | $ 0.05 | $ 0.50 | $ 0.05 | $ 0.05 | $ 0.40 | $ 0.05 | $ 0.05 | $ 0.20 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.65 | $ 0.70 | $ 0.12 |