Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Document and Entity Information | ||
Entity Registrant Name | PRUDENTIAL BANCORP, INC. | |
Entity Central Index Key | 0001578776 | |
Trading Symbol | pbip | |
Current Fiscal Year End Date | --09-30 | |
Title of 12(g) Security | Common Stock | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock Shares Outstanding | 8,895,474 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
ASSETS | ||
Cash and amounts due from depository institutions | $ 2,142 | $ 2,395 |
Interest-bearing deposits | 26,665 | 45,573 |
Total cash and cash equivalents | 28,807 | 47,968 |
Certificates of deposit | 2,351 | 2,351 |
Investment and mortgage-backed securities available for sale at fair value | 530,918 | 512,822 |
Investment and mortgage-backed securities held to maturity (fair value-December 31,2019, $70,710; September 30, 2019, $69,507) | 70,219 | 68,635 |
Equity securities | 77 | 95 |
Loans receivable-net of allowance for loan losses (December 31, 2019, $5,528; September 30, 2019, $5,393) | 588,847 | 585,456 |
Accrued interest receivable | 4,603 | 4,549 |
Real estate owned | 491 | 348 |
Restricted stock-at cost | 17,579 | 16,406 |
Office properties and equipment-net | 7,175 | 7,206 |
Bank owned life insurance | 32,010 | 31,841 |
Deferred tax assets-net | 2,189 | 2,358 |
Goodwill | 6,102 | 6,102 |
Core deposit intangible | 418 | 448 |
Prepaid expenses and other assets | 3,615 | 2,849 |
TOTAL ASSETS | 1,295,401 | 1,289,434 |
Deposits: | ||
Non-interest-bearing | 20,637 | 16,949 |
Interest-bearing | 700,298 | 728,495 |
Total deposits | 720,935 | 745,444 |
Advances from Federal Home Loan Bank (short-term) | 130,000 | 90,000 |
Advances from Federal Home Loan Bank (long-term) | 278,156 | 286,904 |
Accrued interest payable | 2,038 | 4,328 |
Advances from borrowers for taxes and insurance | 3,309 | 2,332 |
Accounts payable and accrued expenses | 18,664 | 20,815 |
Total liabilities | 1,153,102 | 1,149,823 |
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 December 31, 2019; 10,819,006 issued and 8,987,356 outstanding at September 30, 2019 | 108 | 108 |
Additional paid-in capital | 118,673 | 118,384 |
Treasury stock, at cost: 1,929,559 shares at December 31, 2019 and September 30, 2019 | 29,698 | 29,698 |
Retained earnings | 51,391 | 49,625 |
Accumulated other comprehensive income | 1,825 | 1,192 |
Total stockholders' equity | 142,299 | 139,611 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,295,401 | $ 1,289,434 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | ||
Investment and mortgage-backed securities held to maturity, fair value (in dollars) | $ 70,710 | $ 69,507 |
Allowance for loan losses on loans receivable (in dollars) | $ 5,528 | $ 5,393 |
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 | 8,889,447 |
Number of treasury share purchased | 1,929,559 | 302,019 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
INTEREST INCOME: | ||
Interest on loans, including fees | $ 6,830,000 | $ 6,462,000 |
Interest on mortgage-backed securities | 2,793,000 | 1,755,000 |
Interest and dividends on investments | 1,802,000 | 1,532,000 |
Interest on interest-bearing assets | 402,000 | 252,000 |
Total interest income | 11,827,000 | 10,001,000 |
INTEREST EXPENSE: | ||
Interest on deposits | 3,125,000 | 3,040,000 |
Interest on advances from FHLB (short-term) | 456,000 | 67,000 |
Interest on advances from FHLB (long-term) | 1,903,000 | 879,000 |
Total interest expense | 5,484,000 | 3,986,000 |
NET INTEREST INCOME | 6,343,000 | 6,015,000 |
PROVISION FOR LOAN LOSSES | 125,000 | 0 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 6,218,000 | 6,015,000 |
NON-INTEREST INCOME: | ||
Fees and other service charges | 165,000 | 178,000 |
Gain on sale of securities available for sale | 318,000 | |
Loss on equity securities | (18,000) | |
Gain on sale of loans, net | 26,000 | |
Swap income | 33,000 | 3,000 |
Income from bank owned life insurance | 169,000 | 154,000 |
Other | 139,000 | 45,000 |
Total non-interest income | 832,000 | 380,000 |
NON-INTEREST EXPENSES: | ||
Salaries and employee benefits | 2,298,000 | 2,174,000 |
Data processing | 192,000 | 183,000 |
Professional services | 404,000 | 401,000 |
Office occupancy | 204,000 | 238,000 |
Depreciation | 155,000 | 155,000 |
Director compensation | 59,000 | 65,000 |
Advertising | 39,000 | 81,000 |
Core deposit amortization | 30,000 | 33,000 |
Other | 640,000 | 662,000 |
Total non-interest expenses | 4,021,000 | 3,992,000 |
INCOME BEFORE INCOME TAXES | 3,029,000 | 2,403,000 |
INCOME TAXES: | ||
Current expense | 566,000 | 559,000 |
Deferred tax benefit | 0 | (130,000) |
Total income tax expense | 566,000 | 429,000 |
NET INCOME | $ 2,463,000 | $ 1,974,000 |
BASIC EARNINGS PER SHARE | $ 0.280 | $ 0.220 |
DILUTED EARNINGS PER SHARE | 0.280 | 0.220 |
DIVIDENDS PER SHARE | $ 0.07 | $ 0.05 |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 2,463 | $ 1,974 |
Unrealized holding (losses) gains on available-for-sale securities | (1,173) | 3,424 |
Tax effect | 246 | (719) |
Unrealized holding (losses) gain on interest rate swaps | 2,292 | (739) |
Tax effect | (481) | 155 |
Reclassification adjustment for gain on interest rate swap | (318) | |
Tax effect | 67 | |
Total other comprehensive income | 633 | 2,121 |
Comprehensive income | $ 3,096 | $ 4,095 |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total |
BALANCE at Sep. 30, 2018 | $ 108 | $ 118,345 | $ (27,744) | $ 45,854 | $ (8,154) | $ 128,409 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 1,974 | 1,974 | ||||
Other comprehensive income (loss) | 2,121 | 2,121 | ||||
Dividends paid ($0.70 and $0.05 per share for December 31, 2019, December 31, 2018 respectively) | (447) | (447) | ||||
Purchase of treasury stock (96,165 shares) | (1,687) | (1,687) | ||||
Treasury stock used for employee benefit plans (1,773 shares) | (32) | 32 | ||||
Stock option expense | 151 | 151 | ||||
Restricted shares award expense | 157 | 157 | ||||
BALANCE at Dec. 31, 2018 | 108 | 118,621 | (29,399) | 47,381 | (6,033) | 130,678 |
BALANCE at Sep. 30, 2019 | 108 | 118,384 | (29,698) | 49,625 | 1,192 | 139,611 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 2,463 | 2,463 | ||||
Other comprehensive income (loss) | 633 | 633 | ||||
Dividends paid ($0.70 and $0.05 per share for December 31, 2019, December 31, 2018 respectively) | (622) | (622) | ||||
Reclassification for Adoption of ASC Topic 842 | (75) | (75) | ||||
Stock option expense | 153 | 153 | ||||
Restricted shares award expense | 136 | 136 | ||||
BALANCE at Dec. 31, 2019 | $ 108 | $ 118,673 | $ (29,698) | $ 51,391 | $ 1,825 | $ 142,299 |
UNAUDITED CONSOLIDATED STATEM_6
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Dividends paid (in dollars per share) | $ 0.07 | $ 0.05 |
Purchase of treasury stock | 96,165 | |
Treasury stock used for employee benefit plan | 1,773 |
UNAUDITED CONSOLIDATED STATEM_7
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES: | ||
Net income | $ 2,463 | $ 1,974 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 155 | 155 |
Net accretion of premiums/discounts | (721) | (435) |
Provision for loan losses | 125 | 0 |
Gain on sale of investment and mortgage-backed securities | (318) | |
Net amortization of deferred loan fees and costs | (92) | (7) |
Loss on equity securities | 18 | |
Writedown of real estate owned | 40 | |
Gain on sale of loans | (26) | |
Proceeds from the sale of loans held for sale | 4,937 | |
Originations of loans held for sale | (4,911) | |
Share-based compensation expense for stock opt ions and awards | 289 | 308 |
Income from bank owned life insurance | (169) | (154) |
Deferred income tax benefit | 0 | (130) |
Changes in assets and liabilities which provided (used) cash: | ||
Accrued interest receivable | (54) | (315) |
Accrued interest payable | (2,290) | (1,675) |
Net other | (43) | 285 |
Net cash (used in) provided by operating activities | (597) | 6 |
INVESTING ACTIVITIES: | ||
Purchase of investment and mortgage-backed securities available for sale | (60,376) | (86,650) |
Purchase of investment and mortgage-backed securities held for maturity | (2,500) | |
Loans originated or acquired | (32,974) | (30,865) |
Principal collected on loans | 29,463 | 45,430 |
Proceeds from sale of investment and mortgage-backed securities | 17,774 | |
Principal payments received on investment and mortgage-backed securities: | ||
Held-to-maturity | 902 | 2,230 |
Available-for-sale | 23,346 | 3,978 |
Purchase of FHLB stock | (2,468) | (3,270) |
Proceeds from redemption of FHLB stock | 1,295 | 774 |
Purchases of equipment | (124) | (26) |
Net cash used in investing activities | (25,662) | (68,399) |
FINANCING ACTIVITIES: | ||
Net increase (decrease) in demand deposits, NOW accounts, and savings accounts | 24,371 | (3,125) |
Net decrease in certificates of deposit | (48,880) | (28,716) |
Net proceeds from FHLB advances (short-term) | 40,000 | 58,500 |
Proceeds from FHLB advances (long-term) | 23,500 | |
Repayment of FHLB advances (long-term) | (8,748) | (19,232) |
Increase in advances from borrowers for taxes and insurance | 977 | 1,327 |
Cash dividends paid | (622) | (447) |
Purchase of treasury stock | (1,687) | |
Net cash provided by financing activities | 7,098 | 30,120 |
NET DECREASE IN CASH AND CASH EQUIVALENT | (19,161) | (38,273) |
CASH AND CASH EQUIVALENTS-Beginning of period | 47,968 | 48,171 |
CASH AND CASH EQUIVALENTS-End of period | 28,807 | 9,898 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid on deposits and advances from FHLB | 7,774 | 5,661 |
Income taxes paid | ||
SUPPLEMENTAL DISCLOSURES OF NONCASH ITEMS: | ||
Real estate acquired in settlement of loans | 183 | |
Lease adoption: | ||
Right of use lease asset | 1,415 | |
Lease liability | $ 1,536 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SIGNIFICANT ACCOUNTING POLICIES Prudential Bancorp, Inc. (the “Company”) is a Pennsylvania corporation and the parent holding company for Prudential Bank (the “Bank”). The Company is a registered bank holding company. The Bank is a community-oriented, Pennsylvania-chartered savings bank headquartered in South Philadelphia. The banking office network currently consists of the headquarters and main office (which includes a branch office), an administrative office, and nine additional full-service branch offices. Eight of the branch offices are located in Philadelphia (Philadelphia County), one is in Drexel Hill, Delaware County, and one is in Huntingdon Valley, Montgomery County (both Pennsylvania counties). The Bank maintains ATMs at all 10 of the banking offices. The Bank also provides on-line and mobile banking services. The Bank is subject to regulation by the Pennsylvania Department of Banking and Securities (the “Department”), as its chartering authority and primary regulator, and by the Federal Deposit Insurance Corporation (the “FDIC”), which insures the Bank’s deposits up to applicable limits. As a bank holding company, the Company is subject to the regulation of the Board of Governors of the Federal Reserve System. Basis of presentation – The accompanying unaudited consolidated financial statements were prepared pursuant to the rules and regulations of the U. S. Securities and Exchange Commission (“SEC”) for interim information and therefore do not include all the information or footnotes necessary for a complete presentation of financial condition, results of operations, comprehensive income, changes in equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). However, all normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the financial statements have been included. The results for the three months ended December 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2020, or any other period. These financial statements should be read in conjunction with the audited consolidated financial statements of the Company and the accompanying notes thereto included in the Company’s Annual Report on Form 10‑K for the fiscal year ended September 30, 2019. The significant accounting policies followed in the presentation of interim financial results are the same as those followed on an annual basis. These policies are presented on pages 81 through 85 of the Form 10‑K for the year ended September 30, 2019. Use of Estimates in the Preparation of Financial Statements — The preparation of financial statements in conformity with 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 income and expenses during the reporting period. The most significant estimates and assumptions in the Company’s consolidated financial statements are recorded in the allowance for loan losses, deferred income taxes, other-than-temporary impairment, and the fair value measurement for financial instruments. Actual results could differ from those estimates. Recently Adopted Accounting Pronouncements Effective October 1, 2019, the Company adopted ASU 2016-02 – Leases . This Update and all subsequent ASU’s that modified Topic 842 set forth a new lease accounting model for lessors and lessees. For lessees, virtually all leases will have to be recognized on the balance sheet by recording a right-of-use asset and lease liability. Subsequent accounting for leases varies depending on whether the lease is an operating lease or a finance lease. The accounting provided by a lessor is largely unchanged from that applied under the existing guidance. The ASU requires additional qualitative and quantitative disclosures with objective of enabling users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The Update and its related amendments resulted in the recognition of operating right-of-use assets totaling $1.5 million and operating lease liabilities totaling $1.6 million. A $75,000 prior period adjustment to retained earnings was recognized as of October 1, 2019. The Company has presented the necessary disclosures in Note 15. Recent Accounting Pronouncements Not Yet Adopted 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. 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 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 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. 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. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , to clarify its new credit impairment guidance in ASC 326, based on implementation issues raised by stakeholders. This Update clarified, among other things, that expected recoveries are to be included in the allowance for credit losses for these financial assets; an accounting policy election can be made to adjust the effective interest rate for existing troubled debt restructurings based on the prepayment assumptions instead of the prepayment assumptions applicable immediately prior to the restructuring event; and extends the practical expedient to exclude accrued interest receivable from all additional relevant disclosures involving amortized cost basis. The effective dates in this Update are the same as those applicable for ASU 2019-10. 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 December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) , to simplify the accounting for income taxes, change the accounting for certain tax transactions, and make minor improvements to the codification. This Update provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax and provides guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction. The Update also changes current guidance for making an intraperiod allocation if there is a loss in continuing operations and gains outside of continuing operations; determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting; accounting for tax law changes and year-to-date losses in interim periods; and determining how to apply the income tax guidance to franchise taxes that are partially based on income. 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, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 2. EARNINGS PER SHARE Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding, net of any treasury shares, during the period. Diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding, net of any treasury shares, after consideration of the potential dilutive effect of common stock equivalents, based upon the treasury stock method using an average market price for the period. The calculated basic and diluted earnings per share are as follows: Three Months Ended December 31, 2019 2018 Basic Diluted Basic Diluted (Dollars in Thousands, Except Per Share Data) Net income $ 2,463 $ 2,463 $ 1,974 $ 1,974 Weighted average shares outstanding 8,755,165 8,755,165 8,804,096 8,804,096 Effect of common stock equivalents — 170,827 — 189,276 Adjusted weighted average shares used in earnings per share computation 8,755,165 8,925,992 8,804,096 8,993,372 Earnings per share - basic and diluted $ 0.28 $ 0.28 $ 0.22 $ 0.22 As of December 31, 2019 and 2018, there were 550,832 and 666,526 shares of common stock, respectively, subject to options with exercise prices that were less than the then current market and which were included in the computation of diluted earnings per share. At December 31, 2019 and 2018, there were 242,202 and 198,084 shares that had exercise prices greater than the current market value and were considered anti-dilutive at such dates. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in accumulated other comprehensive (loss) income by component net of tax: Three Months Ended December 31, Three Months Ended December 31, 2019 2018 Total accumulated Total accumulated Unrealized Unrealized gain(loss) Other Unrealized Unrealized gain(loss) Other gain(loss) on AFS on interest rate swaps Comprehensive gain(loss) on AFS on interest rate Comprehensive securities (a) (a) income (loss) securities (a) swaps (a) income (loss) Beginning balance, October 1 $ 8,098 $ (6,906) $ 1,192 $ (8,320) $ 166 $ (8,154) Other comprehensive (loss)income before reclassification (927) 1,810 883 2,705 (584) 2,121 Total 7,171 (5,096) 2,075 (5,615) (418) (6,033) Reclassification for net gains recorded in net income (251) — (251) — — — Ending balance, December 31 $ 6,920 $ (5,096) $ 1,824 $ (5,615) $ (418) $ (6,033) (a) All amounts are net of tax. Amounts in parentheses indicate losses. |
INVESTMENT AND MORTGAGE-BACKED
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 3 Months Ended |
Dec. 31, 2019 | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 4. INVESTMENT AND MORTGAGE-BACKED SECURITIES The amortized cost and fair value of investment and mortgage-backed securities, with gross unrealized gains and losses, are as follows: December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 20,836 $ 1 $ (132) $ 20,705 State and political subdivisions 75,965 463 (283) 76,145 Mortgage-backed securities - U.S. government agencies 357,032 6,783 (538) 363,277 Corporate bonds 68,325 2,472 (6) 70,791 Total securities available for sale $ 522,158 $ 9,719 $ (959) $ 530,918 Securities Held to Maturity: U.S. government and agency obligations $ 45,849 $ 159 $ (512) $ 45,496 Mortgage-backed securities - U.S. government agencies 4,507 221 (2) 4,726 State and political subdivisions 19,863 635 (10) 20,488 Total securities held to maturity $ 70,219 $ 1,015 $ (524) $ 70,710 The amortized cost and fair value of equity securities: December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Equity securities FHLMC preferred stock $ 6 $ 71 $ — $ 77 Total equity securities $ 6 $ 71 $ — $ 77 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 As of December 31, 2019, the Bank maintained $320.8 million of securities in a safekeeping account at the FHLB of Pittsburgh available to be used for collateral and convenience. As of December 31, 2019, The Bank was only required to hold $188.3 million as specific collateral for its borrowings; therefore the $132.5 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 length of time that individual securities had been in a continuous loss position at December 31, 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 $ (33) $ 9,967 $ (99) $ 3,738 $ (132) $ 13,705 State and political subdivisions (58) 16,278 (225) 23,724 (283) 40,002 Mortgage-backed securities - US government agencies (193) 32,496 (345) 33,505 (538) 66,001 Corporate bonds — — (6) 1,022 (6) 1,022 Total securities available for sale $ (284) $ 58,741 $ (675) $ 61,989 $ (959) $ 120,730 Securities Held to Maturity: U.S. government and agency obligations $ (512) $ 44,337 $ — $ — $ (512) $ 44,337 Mortgage-backed securities - US government agencies (2) 759 — — (2) 759 State and political subdivisions (10) 2,015 — — (10) 2,015 Total securities held to maturity $ (524) $ 47,111 $ — $ — $ (524) $ 47,111 Total $ (808) $ 105,852 $ (675) $ 61,989 $ (1,483) $ 167,841 The following table shows the gross unrealized losses and related fair values of the Company’s investment securities, aggregated by investment category and 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 - US government agencies (86) 50,057 (320) 37,056 (406) 87,113 Corporate bonds (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 - US 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 each quarter, and more frequently when economic or market concerns 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 whether a credit loss exists with respect to a security 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 has occurred, 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 flows 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 security 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 open market and other sources as appropriate for the particular security. The difference between the fair value and the security’s remaining amortized cost is recognized in other comprehensive income (loss). For both the three months ended December 31, 2019 and 2018, the Company did not record any credit losses on investment securities through earnings. U.S. Government and Agency Obligations - At December 31, 2019, there were 16 securities in a gross unrealized loss position for less than 12 months while there was one security in a gross unrealized loss position for more than 12 months at such date. 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. As a result, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2019. Mortgage-Backed Securities – At December 31, 2019, there were 21 mortgage-backed securities in a gross unrealized loss position for less than 12 months, while there were 27 securities in a gross unrealized loss position for more than 12 months at such date. 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 all of them are currently rated AAA by at least one bond credit rating agency. As a result, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2019. Corporate Debt Securities – At December 31, 2019, there were no securities in a gross unrealized loss for less than 12 months, while there was one security in a gross unrealized loss position for more than 12 months at such date. These securities were issued by publicly reporting companies with an investment grade rating by at least one bond credit rating agency. As a result, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2019. State and political subdivisions – At December 31, 2019, there were two securities in a gross unrealized loss for less than 12 months, while there were twelve securities in a gross unrealized loss position for more than 12 months at such date. 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 short fall of cash flows. These securities were issued by local municipalities/school districts with an investment grade rating by at least one bond credit rating agency. As a result, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2019. The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The maturity table below excludes mortgage-backed securities because the contractual maturities of such securities are not indicative of actual maturities due to significant prepayments. December 31,2019 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in Thousands) Due after one through five years $ 1,707 $ 1,721 $ 20,571 $ 21,104 Due after five through ten years 24,121 24,600 47,754 49,688 Due after ten years 39,884 39,663 96,801 96,849 Total $ 65,712 $ 65,984 $ 165,126 $ 167,641 During the three month period ended December 31, 2019, the Company sold securities with an aggregate amortized cost of $17.5 million for a recognized aggregate gain of $318,000. During the three month period ended December 31, 2018, the Company did not sell any securities. |
LOANS RECEIVABLE
LOANS RECEIVABLE | 3 Months Ended |
Dec. 31, 2019 | |
LOANS RECEIVABLE | |
LOANS RECEIVABLE | 5. LOANS RECEIVABLE Loans receivable consist of the following: December 31, September 30, 2019 2019 (Dollars in Thousands) One-to-four family residential $ 262,706 $ 268,780 Multi-family residential 24,692 30,582 Commercial real estate 129,589 128,521 Construction and land development 251,972 253,368 Commercial business 19,160 19,630 Loans to financial institutions 6,000 6,000 Leases 391 518 Consumer 854 834 Total loans 695,364 708,233 Undisbursed portion of loans-in-process (98,555) (114,528) Deferred loan fees (2,434) (2,856) Allowance for loan losses (5,528) (5,393) Net loans $ 588,847 $ 585,456 The following table summarizes by loan segment the balance in the allowance for loan losses and the loans individually and collectively evaluated for impairment by loan segment at December 31, 2019: One- to four - Construction Lans to family Multi-family Commercial real and land Commercial financial residential residential estate development business institutions Leases Consumer Unallocated Total (Dollars in Thousands) Allowance for Loan Losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 999 255 1,281 2,205 201 63 4 12 508 5,528 Total ending allowance balance $ 999 $ 255 $ 1,281 $ 2,205 $ 201 $ 63 $ 4 $ 12 $ 508 $ 5,528 Loans: Individually evaluated for impairment $ 4,028 $ — $ 1,473 $ 8,750 $ 15 $ — $ — $ 56 $ 14,322 Collectively evaluated for impairment 258,678 24,692 128,116 243,222 19,145 6,000 391 798 681,042 Total loans $ 262,706 $ 24,692 $ 129,589 $ 251,972 $ 19,160 $ 6,000 $ 391 $ 854 $ 695,364 The following table summarizes by loan segment the balance in the allowance for loan losses and the loans individually and collectively evaluated for impairment by loan segment at September 30, 2019: One- to four - Construction Loanss to family Multi-family Commercial real and land Commercial financial residential residential estate development business institutions Leases Consumer Unallocated Total (Dollars in Thousands) Allowance for Loan Losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,002 315 1,257 2,034 206 63 5 13 498 5,393 Total ending allowance balance $ 1,002 $ 315 $ 1,257 $ 2,034 $ 206 $ 63 $ 5 $ 13 $ 498 $ 5,393 Loans: Individually evaluated for impairment $ 4,827 $ — $ 1,965 $ 8,750 $ — $ — $ — $ — $ 15,542 Collectively evaluated for impairment 263,953 30,582 126,556 244,618 19,630 6,000 518 834 692,691 Total loans $ 268,780 $ 30,582 $ 128,521 $ 253,368 $ 19,630 $ 6,000 $ 518 $ 834 $ 708,233 The loan portfolio is segmented at a level that allows management to monitor both risk and performance. Management evaluates for potential impairment all construction, multi-family, commercial real estate, commercial business loans, all leases and all loans and leases more than 90 days delinquent as to principal and/or interest. Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect in full the scheduled payments of principal and/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. On collateral method evaluations, any portion of the loan deemed uncollectible is charged-off against the loan loss allowance. The following table presents impaired loans by class as of December 31, 2019, segregated by those for which a specific allowance was required and those for which a specific allowance was not required. 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 $ — $ — $ 4,028 $ 4,028 $ 4,392 Commercial real estate — — 1,473 1,473 1,632 Construction and land development — — 8,750 8,750 11,131 Commercial business — — 15 15 15 Consumer — — 56 56 56 Total impaired loans $ — $ — $ 14,322 $ 14,322 $ 17,226 The following table presents impaired loans by class as of September 30, 2019, segregated by those for which a specific allowance was required and those for which a specific allowance was not required. 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 Commercial real estate — — 1,965 1,965 2,125 Construction and land development — — 8,750 8,750 11,131 Total impaired loans $ — $ — $ 15,542 $ 15,542 $ 18,435 The following tables present the average recorded investment in impaired loans and related interest income recognized for the periods indicated: Three Months Ended December 31, 2019 Average Income Income Recorded Recognized on Recognized on Investment Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 4,593 $ 3 $ 9 Multi-family residential 148 — — Commercial real estate 1,769 — 1 Construction and land development 8,750 — — Commercial business 8 — 1 Consumer 31 — — Total loans $ 15,299 $ 3 $ 11 Three Months Ended December 31, 2018 Average Income Income Recorded Recognized on Recognized on Investment Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 5,158 $ 15 $ 5 Multi-family residential 296 5 — Commercial real estate 2,064 10 1 Construction and land development 8,752 — — Consumer 5 — — Total loans $ 16,275 $ 30 $ 6 Federal regulations and our loan policy require that the Company utilize an internal asset classification system as a means of reporting problem and potential problem assets. The Company has incorporated an internal asset classification system, consistent with Federal banking regulations, as a part of its 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”, “doubtful” and “loss” within the Company’s risk rating system as applied to the loan portfolio. The Company had no loans classified as “doubtful” or “loss” at either of the dates presented. December 31, 2019 Special Total Pass Mention Substandard Loans (Dollars in Thousands) One-to-four family residential $ 257,164 $ 1,514 $ 4,028 $ 262,706 Multi-family residential 24,692 — — 24,692 Commercial real estate 124,425 3,691 1,473 129,589 Construction and land development 243,222 — 8,750 251,972 Loans to financial institutions 6,000 — — 6,000 Commercial business 19,145 — 15 19,160 Total loans $ 674,648 $ 5,205 $ 14,266 $ 694,119 September 30, 2019 Special Total Pass Mention Substandard Loans (Dollars in Thousands) One-to-four family 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 loans $ 685,832 $ 5,507 $ 15,542 $ 706,881 The Company evaluates the classification of one-to-four family residential and consumer loans primarily on a pooled basis. If the Company becomes aware that adverse or distressed conditions exist that may affect a particular single-family residential loan, the loan is downgraded following the above definitions of special mention, substandard, doubtful and loss. The following tables represent 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. Non-performing loans that would be included in the table are those loans greater than 90 days past due as to principal and/or interest that do not have a designated risk rating. December 31,2019 Non- Total Performing Performing Loans (Dollars in Thousands) One-to-four family residential $ 259,257 $ 3,449 $ 262,706 Leases 391 — 391 Consumer 798 56 854 Total loans $ 260,446 $ 3,505 $ 263,951 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 loans $ 266,420 $ 3,712 $ 270,132 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 or overdue, as the case may be. The following table presents the loan categories of the loan portfolio summarized by the aging categories of performing and delinquent loans and nonaccrual loans: December 31, 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 $ 259,186 $ 1,009 $ 2,511 $ 3,520 $ 262,706 $ 3,449 $ — Multi-family residential 24,692 — — — 24,692 — — Commercial real estate 128,172 — 1,417 1,417 129,589 1,473 — Construction and land development 243,222 — 8,750 8,750 251,972 8,750 — Commercial business 19,145 — 15 15 19,160 15 — Loans to financial institutions 6,000 — — — 6,000 — — Leases 391 — — — 391 — — Consumer 688 110 56 166 854 56 — Total loans $ 681,496 $ 1,119 $ 12,749 $ 13,868 $ 695,364 $ 13,743 $ — 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 $ — The allowance for loan losses is established through a provision for loan losses charged to expense. The Company 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 these 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 contained in the portfolio 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 the Company’s loans, the value of collateral securing the loans, the borrowers’ 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 owner-occupied 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, in some cases, 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 the Company 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 sale of the properties, potentially reducing both the borrowers’ ability to make required payments as well as reducing the value of the collateral property. Such lending is additionally subject to the risk that if the estimate of construction cost proves to be inaccurate, the Company potentially will be compelled to advance additional funds to allow completion of the project. In addition, if the estimate of value proves to be inaccurate, the Company may be confronted with a project, when completed, having less value than the loan amount. If the Company is forced to foreclose on a project prior to completion, there is no assurance that the Company would be able to recover the entire unpaid portion of the loan. The following tables summarize the primary segments of the allowance for loan losses. Activity in the allowance is presented for the three-month periods ended December 31, 2019 and 2018: Three Months Ended December 31, 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 (Dollars in Thousands) ALLL balance at September 30, 2019 $ 1,002 $ 315 $ 1,257 $ 2,034 $ 206 $ 63 $ 5 $ 13 $ 498 $ 5,393 Charge-offs — — — — — — — — — — Recoveries — — — — — — 10 — — 10 Provision (3) (60) 24 171 (5) — (11) (1) 10 125 ALLL balance at December 31, 2019 $ 999 $ 255 $ 1,281 $ 2,205 $ 201 $ 63 $ 4 $ 12 $ 508 $ 5,528 Three Months Ended December 31, 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 (Dollars in Thousands) ALLL balance at September 30, 2018 $ 1,343 $ 347 $ 1,154 $ 1,554 $ 187 $ 64 $ 18 $ 18 $ 482 $ 5,167 Charge-offs — — — — — — — — — — Recoveries — — — — — — — — — — Provision 84 25 (7) (109) 6 3 (2) (5) 5 — ALLL balance at December 31, 2018 $ 1,427 $ 372 $ 1,147 $ 1,445 $ 193 $ 67 $ 16 $ 13 $ 487 $ 5,167 At December 31, 2019, the Company had five loans aggregating $5.5 million that were classified as troubled debt restructurings (“TDRs”). One such loan aggregating $135,000 as of December 31, 2019 was performing in accordance with the restructured terms and accruing interest. Three of the TDRs, totaling $4.9 million, which are classified as non-accrual are a part of a troubled lending relationship totaling $10.6. The remaining TDR is also on non-accrual and consists of a $428,000 loan secured by a single family property; the loan is performing in accordance with the restructured terms. The Company did not restructure any loans during the three months ended December 31, 2019 or 2018. No TDRs defaulted during either of the three month periods ending December 31, 2019 or December 31, 2018. |
DEPOSITS
DEPOSITS | 3 Months Ended |
Dec. 31, 2019 | |
DEPOSITS | |
DEPOSITS | 6. DEPOSITS Deposits consist of the following major classifications: December 31, September 30, 2019 2019 Amount Percent Amount Percent (Dollars in Thousands) Money market deposit accounts $ 85,085 11.8 % $ 75,766 10.2 % Interest-bearing checking accounts 71,640 9.9 % 58,647 7.9 % Non interest-bearing checking accounts 20,637 2.9 % 16,949 2.3 % Passbook, club and statement savings 79,244 11.0 % 80,899 10.8 % Certificates maturing in six months or less 283,818 39.4 % 294,343 39.4 % Certificates maturing in more than six months 180,511 25.0 % 218,840 29.4 % Total $ 720,935 100.0 % $ 745,444 100.0 % Certificates to the amount of $250,000 and over totaled $146.5 million as of December 31, 2019 and $182.8 million as of September 30, 2019. |
ADVANCES FROM FEDERAL HOME LOAN
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | 3 Months Ended |
Dec. 31, 2019 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | |
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | 7. ADVANCES FROM FEDERAL HOME LOAN BANK – SHORT TERM The outstanding balances and related information of short-term borrowings from the FHLB as of and for the periods ended December 31, 2019 and September 30, 2019 are summarized follows: December 31, September 30, (Dollar Amounts in Thousands) 2019 2019 Balance at period end $ 130,000 $ 90,000 Maximum month-end balance $ 130,000 $ 90,000 Weighted-average rate at period end % % Weighted-average rate during the period % % As of December 31, 2019, the $130.0 million of borrowings consisted of seven 30-day and two 90-day FHLB advances associated with interest rate swap contracts. As of September 30, 2019, the $90.0 million of borrowings consisted of seven 30-day FHLB advances associated with interest rate swap contracts. The Bank maintains borrowing facilities with the FHLB of Pittsburgh, Atlantic Community Bankers Bank (“ACBB”) and the Federal Reserve Bank of Philadelphia the terms and interest rates of which are subject to change on the date of execution of borrowings. Available borrowings are based on collateral with the facility. The Bank 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 | 3 Months Ended |
Dec. 31, 2019 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | 8. 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 December 31, 2019 and September 30, 2019 are as follows: Long-term FHLB Weighted advances: Maturity range average interest Stated interest rate range December 31, September 30, Description from to rate from to 2019 2019 (Dollars in Thousands) Fixed Rate - Amortizing 1‑Oct‑19 30‑Sep‑20 — 236 Fixed Rate - Amortizing 1‑Oct‑20 30‑Sep‑21 2.70 % 1.94 % 2.83 % 12,083 14,354 Fixed Rate - Amortizing 1‑Oct‑21 30‑Sep‑22 2.82 % 1.99 % 3.05 % 7,935 8,729 Fixed Rate - Amortizing 1‑Oct‑22 30‑Sep‑23 2.88 % 1.94 % 3.11 % 6,519 6,931 Total 2.78 % $ 26,537 $ 30,250 Fixed Rate - Advances 1‑Oct‑19 30‑Sep‑20 2.76 % 1.38 % 3.06 % $ 7,284 $ 12,304 Fixed Rate - Advances 1‑Oct‑20 30‑Sep‑21 2.37 % 1.42 % 2.92 % 18,012 18,017 Fixed Rate - Advances 1‑Oct‑21 30‑Sep‑22 2.31 % 1.94 % 3.23 % 63,326 63,336 Fixed Rate - Advances 1‑Oct‑22 30‑Sep‑23 2.52 % 2.00 % 3.22 % 94,999 94,999 Fixed Rate - Advances 1‑Oct‑23 30‑Sep‑24 2.88 % 2.38 % 3.20 % 67,998 67,998 Total 2.56 % $ 251,619 $ 256,654 2.58 % Total $ 278,156 $ 286,904 |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Dec. 31, 2019 | |
DERIVATIVES | |
DERIVATIVES | 9. DERIVATIVES 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 December 31, 2019 and September 30, 2019, while there are eleven additional cash flow hedges tied to wholesale funding at December 31, 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 quarter ended December 31, 2019, $2,000 of income was recognized as ineffectiveness through earnings, while $3,000 of expense was recognized as ineffectiveness through earnings during the comparable period in 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 both December 31, 2019 and September 30, 2019. The fair value is recorded in the other liabilities section of the statement of financial condition. Below is a summary of the interest rate swap agreements and their terms as of December 31, 2019. Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Loss (Dollars in Thousands) FHLB Advances $ 10,000 2.70 % 2.70 % 1 Mth Libor 10‑Apr‑25 10‑Apr‑25 $ (569) State and political subdivisions 21,570 3.06 % 3.07 % 3 Mth Libor 1‑Feb‑27 1‑May‑28 (1,939) State and political subdivision 2,825 3.06 % 3.06 % 3 Mth Libor 1‑Apr‑27 1‑Apr‑27 State and political subdivision 5,000 3.07 % 3.07 % 3 Mth Libor 1‑Jan‑28 1‑Jan‑28 State and political subdivision 1,235 3.07 % 3.07 % 3 Mth Libor 1‑Mar‑28 1‑Mar‑28 State and political subdivision 4,500 3.07 % 3.07 % 3 Mth Libor 1‑May‑28 1‑May‑28 State and political subdivision 3,305 3.05 % 3.05 % 3 Mth Libor 1‑Feb‑27 1‑Feb‑27 State and political subdivision 3,000 3.06 % 3.06 % 3 Mth Libor 15‑Oct‑27 15‑Oct‑27 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 (679) 90 day wholesale funding 135,000 2.51 % 2.78 % 3 Mth Libor 27‑Mar‑24 11‑Jan‑24 (5,315) $ (8,502) Below is a summary of the interest rate swap agreements and their terms as of September 30, 2019. Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Loss (Dollars in Thousands) FHLB Advances $ 10,000 % 2.70 % 1 Mth Libor 10‑Apr‑25 10‑Apr‑25 $ (719) State and political subdivisions 21,570 % 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 % 2.51 % 1 Mth Libor 15‑Feb‑24 12‑Jun‑26 (1,415) 90 day wholesale funding 135,000 % 2.78 % 3 Mth Libor 11‑Jan‑24 27‑Mar‑24 (6,605) $ (11,241) All interest swaps are carried at fair value in accordance with FASB ASC 815 “Derivatives and Hedging.” |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | 10. INCOME TAXES Items that gave rise to significant portions of deferred income taxes are as follows: December 31, September 30, 2019 2019 (Dollars in Thousands) Deferred tax assets: Allowance for loan losses $ 1,484 $ 1,488 Nonaccrual interest 505 487 Accrued vacation 7 7 Capital loss carryforward 121 121 Split dollar life insurance 9 9 Post-retirement benefits 74 76 Unrealized losses on interest rate swaps 1,354 1,836 Deferred compensation 812 809 Goodwill 66 69 Other 75 64 Employee benefit plans 257 216 Total deferred tax assets 4,764 5,182 Valuation allowance (121) (121) Total deferred tax assets, net of valuation allowance 4,643 5,061 Deferred tax liabilities: Property 133 141 Unrealized gain on equity securities 16 19 Unrealized gains on available for sale securities 1,840 2,153 Purchase accounting adjustments 245 215 Deferred loan fees 220 175 Total deferred tax liabilities 2,454 2,703 Net deferred tax assets $ 2,189 $ 2,358 The Company establishes a valuation allowance for deferred tax assets when management believes that the use of the deferred tax assets is not likely to be fully realized through future reversals of existing taxable temporary differences and/or, to a lesser extent, future taxable income. The tax deduction generated by the redemption of the shares of a mutual fund held by the Bank and the subsequent impairment charge on the assets acquired through the redemption in kind are considered capital losses and can only be utilized to the extent of capital gains recognized over a five year period, resulting in the establishment of a valuation allowance for the carryforward period. The valuation allowance totaled $121,000 at December 31, 2019 and September 30, 2019, respectively. For the three-month period ended December 31, 2019, the Company recorded income tax expense of $566,000 compared to income tax expense of $429,000, for the period ended December 31, 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 return 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. |
STOCK COMPENSATION PLANS
STOCK COMPENSATION PLANS | 3 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFITS | |
STOCK COMPENSATION PLANS | 11. STOCK COMPENSATION PLANS 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 awards covering shares under the 2008 RRP and 3,027 shares under the 2014 SIP. In March 2017, the Company granted awards covering 17,128 shares under the 2014 SIP. In March 2018, the Company granted awards covering 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. No further grants may be made pursuant to the RRP. Compensation expense related to the shares subject to restricted stock awards granted is recognized ratably over the five-year vesting period in an amount which totals the grant date fair value multiplied by the number of shares subject to the grant. During the three months ended December 31, 2019 and 2018, $136,000 and $157,000, respectively, was recognized in compensation expense for the RRP and the 2014 SIP. At December 31, 2019, approximately $550,000 in additional compensation expense for the shares awarded which remained outstanding related to the RRP and the 2014 SIP remained unrecognized A summary of the Company’s non-vested stock award activity for the three months ended December 31, 2019 and 2018 is presented in the following tables: Three Months Ended December 31, 2019 Weighted Average Number of Grant Date Per Shares Share Fair Value Nonvested stock awards at October 1,2019 68,980 $ 15.05 Granted — — Forfeited — — Vested — — Nonvested stock awards at the December 31,2019 68,980 $ 15.05 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 shares (on a converted basis) 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 options covering 18,866 shares under the Option Plan and 8,634 shares under the 2014 SIP. In March 2017, the Company granted options covering 22,828 shares under the 2014 SIP. In May 2017, the Company granted options covering 25,000 shares under the 2014 SIP and 283 shares under the Option Plan. In March 2018, the Company granted options covering 159,265 shares under the 2014 SIP and 18,235 shares under the Option Plan. In July 2019, the Company granted options covering 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’s stock options under the 2008 Option Plan and the 2014 SIP as of December 31, 2019 and 2018 are presented below: Three Months Ended December 31, 2019 Number of Weighted Average Shares Exercise Price Outstanding at October 1,2019 793,034 $ 13.86 Granted — — Exercised — — Forfeited — — Outstanding at December 31,2019 793,034 $ 13.86 Exercisable at December 31,2019 489,288 $ 12.21 The weighted average remaining contractual term was approximately 6.2 years for options outstanding as of December 31, 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 three months ended December 31, 2019 and 2018, $229,000 and $150,000, respectively, was recognized in compensation expense for options granted pursuant to the Option Plan and the 2014 SIP. At December 31, 2019, there was approximately $715,000 in additional compensation expense to be recognized for awarded options which remained outstanding and unvested at such date. The weighted average period over which this expense will be recognized is approximately 2.9 years. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
COMMITMENTS AND CONTINGENT LIABILITIES | 12. COMMITMENTS AND CONTINGENT LIABILITIES At December 31, 2019, the Company had $42.7 million in outstanding commitments to originate loans with market interest rates ranging from 1.99% to 6.25%. At September 30, 2019, the Company had $32.4 million in outstanding commitments to originate fixed-rate loans with market interest rates ranging from 1.99% to 6.50%. The aggregate undisbursed portion of loans-in-process amounted to $98.6 million at December 31, 2019 and $114.5 million at September 30, 2019. The Company also had commitments under unused lines of credit of $35.8 million as of December 31, 2019 and $37.5 million as of September 30, 2019 and letters of credit outstanding of $1.3 million as of December 31, 2019 and $1.5 million as of September 30, 2019. 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 December 31, 2019, the exposure, which represents a portion of credit risk associated with the interests sold, amounted to $1.3 million. This exposure is for the life of the related loans and payables, on our 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, believes that such proceedings will not have a material adverse effect on the financial condition, operations or cash flows of the Company. However, there can be no assurance that any of the outstanding legal proceedings to which the Company is a party will not be decided adversely to the Company’s interests and not have a material adverse effect on the financial condition and operations of the Company. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 13. FAIR VALUE MEASUREMENT The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2019 and September 30, 2019, 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 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Those assets and liabilities as of December 31, 2019 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 $ — $ 20,705 $ — $ 20,705 State and political subdivisons — 76,145 — 76,145 Mortgage-backed securities - U.S. Government agencies — 363,277 — 363,277 Corporate bonds — 70,791 — 70,791 Equity security - FHLMC preferred stock 77 — — 77 Total $ 77 $ 530,918 $ — $ 530,995 Liabilities: Interest rate swap contracts $ — $ 8,502 $ — $ 8,502 Total $ — $ 8,502 $ — $ 8,502 Those assets as of September 30, 2019 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 $ — $ 24,865 $ — $ 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 security - FHLMC preferred stock 95 — — 95 Total $ 95 $ 512,822 $ — $ 512,917 Liabilities: Interest rate swap contracts $ — $ 11,241 $ — $ 11,241 Total $ — $ 11,241 $ — $ 11,241 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 The Company considers loans to be impaired when it becomes more likely than not that the Company will be unable to collect all amounts due in accordance with the contractual terms of the loan agreements. 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 approximately $14.3 million as of December 31, 2019. 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 a Level 2 measurement. In some cases, adjustments are made to the appraised values for various factors including age of the appraisal, age of the comparable included in the appraisal, and known changes in the market and in the collateral. As a result, 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 December 31, 2019 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 14,322 $ 14,322 Real estate owned — — 491 491 Total $ — $ — $ 14,813 $ 14,813 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 The following table provides information describing the valuation processes used to determine nonrecurring fair value measurements categorized within Level 3 of the fair value hierarchy: At December 31, 2019 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Impaired loans $ 14,322 Property appraisals (1)(3) Management discount for selling costs, property type and market volatility (2) 6% to 9% discount/ 7 % Real estate owned $ 491 Property appraisals (1)(3) Management discount for selling costs, property type and market volatility (2) 22% discount 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 (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 of financial instruments has 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. Fair Value Measurements at Carrying Fair December 31, 2019 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Cash and cash equivalents $ 28,807 $ 28,807 $ 28,807 $ — $ — Certificates of deposit 2,351 2,351 2,351 — — Investment and mortgage-backed securities held to maturity 70,219 70,710 — 70,710 — Loans receivable, net 588,847 591,745 — — 591,745 Accrued interest receivable 4,603 4,603 4,603 — — Restricted bank stock 17,579 17,579 17,579 — — Bank owned life insurance 32,010 32,010 32,010 — — Liabilities: Checking accounts 92,277 92,277 92,277 — — Money market deposit accounts 85,085 85,085 85,085 — — Passbook, club and statement savings accounts 79,244 79,244 79,244 — — Certificates of deposit 464,329 470,793 — — 470,793 Advances from FHLB - short-term 130,000 130,000 130,000 — — Advances from FHLB - long-term 278,156 284,142 — — 284,142 Accrued interest payable 2,038 2,038 2,038 — — Advances from borrowers for taxes and insurance 3,309 3,309 3,309 — — 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 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 bank 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 — — |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Dec. 31, 2019 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 14. GOODWILL AND OTHER INTANGIBLE ASSETS The Company’s goodwill and intangible assets are related to the acquisition of Polonia Bancorp as of January 1, 2017. Balance Balance October 1, Additions/ December 31, Amortization 2019 Adjustments Amortization 2019 Period Goodwill $ 6,102 $ — $ — $ 6,102 Core deposit intangible 448 — (30) 418 10 years $ 6,550 $ — $ (30) $ 6,520 As of December 31, 2019, the future fiscal periods amortization expense for the core deposit intangible is: (In Thousands) 2020 $ 78 2021 93 2022 78 2023 64 2024 49 Thereafter 56 Total $ 418 |
LEASES
LEASES | 3 Months Ended |
Dec. 31, 2019 | |
LEASES | |
LEASES | 15. LEASES Operating leases in which the Company is the lessee are recorded as operating lease Right of Use ("ROU") assets and operating lease liabilities, included in other assets and other liabilities, respectively, on the consolidated statement of financial condition. The Company does not currently have any finance leases. Operating lease ROU assets represent the right to use an underlying asset during the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized as of the date of adoption based on the present value of the remaining lease payments using a discount rate that represents the Company's incremental borrowing rate at the date of initial application. Operating lease expense, which is comprised of amortization of the ROU assets and the implicit interest accreted on the operating lease liability, is recognized on a straight line basis over the lease term of the operating basis, and is recorded in office occupancy expense in the consolidated statements of operations. The leases relate to Bank branches with remaining lease terms of generally 5 to 9 years. As of December 31, 2019, operating lease ROU assets were $1.4 million and liabilities were $1.5 million; For the quarter ended December 31, 2019, $51,000 in operating lease cost was recognized. The following table summarizes other information related to our operating leases: December 31, 2019 Weighted-average remaining lease term - operating leases in years 7.0 Weighted-average discount rate - operating leases 2.0 % The following table presents aggregate lease maturities and obligations as of December 31, 2019: (Dollars in Thousands) 2020 $ 155 2021 210 2022 213 2023 216 2024 220 2025 and thereafter 647 Total lease payments 1,661 Less: interest 125 Present value of lease liabilities $ 1,536 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | Basis of presentation – The accompanying unaudited consolidated financial statements were prepared pursuant to the rules and regulations of the U. S. Securities and Exchange Commission (“SEC”) for interim information and therefore do not include all the information or footnotes necessary for a complete presentation of financial condition, results of operations, comprehensive income, changes in equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). However, all normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the financial statements have been included. The results for the three months ended December 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2020, or any other period. These financial statements should be read in conjunction with the audited consolidated financial statements of the Company and the accompanying notes thereto included in the Company’s Annual Report on Form 10‑K for the fiscal year ended September 30, 2019. The significant accounting policies followed in the presentation of interim financial results are the same as those followed on an annual basis. These policies are presented on pages 81 through 85 of the Form 10‑K for the year ended September 30, 2019. |
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 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 income and expenses during the reporting period. The most significant estimates and assumptions in the Company’s consolidated financial statements are recorded in the allowance for loan losses, deferred income taxes, other-than-temporary impairment, and the fair value measurement for financial instruments. Actual results could differ from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective October 1, 2019, the Company adopted ASU 2016-02 – Leases . This Update and all subsequent ASU’s that modified Topic 842 set forth a new lease accounting model for lessors and lessees. For lessees, virtually all leases will have to be recognized on the balance sheet by recording a right-of-use asset and lease liability. Subsequent accounting for leases varies depending on whether the lease is an operating lease or a finance lease. The accounting provided by a lessor is largely unchanged from that applied under the existing guidance. The ASU requires additional qualitative and quantitative disclosures with objective of enabling users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The Update and its related amendments resulted in the recognition of operating right-of-use assets totaling $1.5 million and operating lease liabilities totaling $1.6 million. A $75,000 prior period adjustment to retained earnings was recognized as of October 1, 2019. The Company has presented the necessary disclosures in Note 15. Recent Accounting Pronouncements Not Yet Adopted 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. 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 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 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. 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. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses , to clarify its new credit impairment guidance in ASC 326, based on implementation issues raised by stakeholders. This Update clarified, among other things, that expected recoveries are to be included in the allowance for credit losses for these financial assets; an accounting policy election can be made to adjust the effective interest rate for existing troubled debt restructurings based on the prepayment assumptions instead of the prepayment assumptions applicable immediately prior to the restructuring event; and extends the practical expedient to exclude accrued interest receivable from all additional relevant disclosures involving amortized cost basis. The effective dates in this Update are the same as those applicable for ASU 2019-10. 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 December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) , to simplify the accounting for income taxes, change the accounting for certain tax transactions, and make minor improvements to the codification. This Update provides a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax and provides guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction. The Update also changes current guidance for making an intraperiod allocation if there is a loss in continuing operations and gains outside of continuing operations; determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting; accounting for tax law changes and year-to-date losses in interim periods; and determining how to apply the income tax guidance to franchise taxes that are partially based on income. 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, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted earnings per share | The calculated basic and diluted earnings per share are as follows: Three Months Ended December 31, 2019 2018 Basic Diluted Basic Diluted (Dollars in Thousands, Except Per Share Data) Net income $ 2,463 $ 2,463 $ 1,974 $ 1,974 Weighted average shares outstanding 8,755,165 8,755,165 8,804,096 8,804,096 Effect of common stock equivalents — 170,827 — 189,276 Adjusted weighted average shares used in earnings per share computation 8,755,165 8,925,992 8,804,096 8,993,372 Earnings per share - basic and diluted $ 0.28 $ 0.28 $ 0.22 $ 0.22 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Schedule of changes in accumulated other comprehensive (loss) income | Three Months Ended December 31, Three Months Ended December 31, 2019 2018 Total accumulated Total accumulated Unrealized Unrealized gain(loss) Other Unrealized Unrealized gain(loss) Other gain(loss) on AFS on interest rate swaps Comprehensive gain(loss) on AFS on interest rate Comprehensive securities (a) (a) income (loss) securities (a) swaps (a) income (loss) Beginning balance, October 1 $ 8,098 $ (6,906) $ 1,192 $ (8,320) $ 166 $ (8,154) Other comprehensive (loss)income before reclassification (927) 1,810 883 2,705 (584) 2,121 Total 7,171 (5,096) 2,075 (5,615) (418) (6,033) Reclassification for net gains recorded in net income (251) — (251) — — — Ending balance, December 31 $ 6,920 $ (5,096) $ 1,824 $ (5,615) $ (418) $ (6,033) All amounts are net of tax. Amounts in parentheses indicate losses |
INVESTMENT AND MORTGAGE-BACKE_2
INVESTMENT AND MORTGAGE-BACKED SECURITIES (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | |
Schedule of amortized cost and fair value of securities, with gross unrealized gains and losses | December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 20,836 $ 1 $ (132) $ 20,705 State and political subdivisions 75,965 463 (283) 76,145 Mortgage-backed securities - U.S. government agencies 357,032 6,783 (538) 363,277 Corporate bonds 68,325 2,472 (6) 70,791 Total securities available for sale $ 522,158 $ 9,719 $ (959) $ 530,918 Securities Held to Maturity: U.S. government and agency obligations $ 45,849 $ 159 $ (512) $ 45,496 Mortgage-backed securities - U.S. government agencies 4,507 221 (2) 4,726 State and political subdivisions 19,863 635 (10) 20,488 Total securities held to maturity $ 70,219 $ 1,015 $ (524) $ 70,710 The amortized cost and fair value of equity securities: December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Equity securities FHLMC preferred stock $ 6 $ 71 $ — $ 77 Total equity securities $ 6 $ 71 $ — $ 77 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 |
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 length of time that individual securities had been in a continuous loss position at December 31, 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 $ (33) $ 9,967 $ (99) $ 3,738 $ (132) $ 13,705 State and political subdivisions (58) 16,278 (225) 23,724 (283) 40,002 Mortgage-backed securities - US government agencies (193) 32,496 (345) 33,505 (538) 66,001 Corporate bonds — — (6) 1,022 (6) 1,022 Total securities available for sale $ (284) $ 58,741 $ (675) $ 61,989 $ (959) $ 120,730 Securities Held to Maturity: U.S. government and agency obligations $ (512) $ 44,337 $ — $ — $ (512) $ 44,337 Mortgage-backed securities - US government agencies (2) 759 — — (2) 759 State and political subdivisions (10) 2,015 — — (10) 2,015 Total securities held to maturity $ (524) $ 47,111 $ — $ — $ (524) $ 47,111 Total $ (808) $ 105,852 $ (675) $ 61,989 $ (1,483) $ 167,841 The following table shows the gross unrealized losses and related fair values of the Company’s investment securities, aggregated by investment category and 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 - US government agencies (86) 50,057 (320) 37,056 (406) 87,113 Corporate bonds (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 - US 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 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | December 31,2019 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in Thousands) Due after one through five years $ 1,707 $ 1,721 $ 20,571 $ 21,104 Due after five through ten years 24,121 24,600 47,754 49,688 Due after ten years 39,884 39,663 96,801 96,849 Total $ 65,712 $ 65,984 $ 165,126 $ 167,641 |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
LOANS RECEIVABLE | |
Schedule of loans receivable | December 31, September 30, 2019 2019 (Dollars in Thousands) One-to-four family residential $ 262,706 $ 268,780 Multi-family residential 24,692 30,582 Commercial real estate 129,589 128,521 Construction and land development 251,972 253,368 Commercial business 19,160 19,630 Loans to financial institutions 6,000 6,000 Leases 391 518 Consumer 854 834 Total loans 695,364 708,233 Undisbursed portion of loans-in-process (98,555) (114,528) Deferred loan fees (2,434) (2,856) Allowance for loan losses (5,528) (5,393) Net loans $ 588,847 $ 585,456 |
Schedule of loans individually and collectively evaluated for impairment by loan segment | The following table summarizes by loan segment the balance in the allowance for loan losses and the loans individually and collectively evaluated for impairment by loan segment at December 31, 2019: One- to four - Construction Lans to family Multi-family Commercial real and land Commercial financial residential residential estate development business institutions Leases Consumer Unallocated Total (Dollars in Thousands) Allowance for Loan Losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 999 255 1,281 2,205 201 63 4 12 508 5,528 Total ending allowance balance $ 999 $ 255 $ 1,281 $ 2,205 $ 201 $ 63 $ 4 $ 12 $ 508 $ 5,528 Loans: Individually evaluated for impairment $ 4,028 $ — $ 1,473 $ 8,750 $ 15 $ — $ — $ 56 $ 14,322 Collectively evaluated for impairment 258,678 24,692 128,116 243,222 19,145 6,000 391 798 681,042 Total loans $ 262,706 $ 24,692 $ 129,589 $ 251,972 $ 19,160 $ 6,000 $ 391 $ 854 $ 695,364 The following table summarizes by loan segment the balance in the allowance for loan losses and the loans individually and collectively evaluated for impairment by loan segment at September 30, 2019: One- to four - Construction Loanss to family Multi-family Commercial real and land Commercial financial residential residential estate development business institutions Leases Consumer Unallocated Total (Dollars in Thousands) Allowance for Loan Losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,002 315 1,257 2,034 206 63 5 13 498 5,393 Total ending allowance balance $ 1,002 $ 315 $ 1,257 $ 2,034 $ 206 $ 63 $ 5 $ 13 $ 498 $ 5,393 Loans: Individually evaluated for impairment $ 4,827 $ — $ 1,965 $ 8,750 $ — $ — $ — $ — $ 15,542 Collectively evaluated for impairment 263,953 30,582 126,556 244,618 19,630 6,000 518 834 692,691 Total loans $ 268,780 $ 30,582 $ 128,521 $ 253,368 $ 19,630 $ 6,000 $ 518 $ 834 $ 708,233 |
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 as of December 31, 2019, segregated by those for which a specific allowance was required and those for which a specific allowance was not required. 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 $ — $ — $ 4,028 $ 4,028 $ 4,392 Commercial real estate — — 1,473 1,473 1,632 Construction and land development — — 8,750 8,750 11,131 Commercial business — — 15 15 15 Consumer — — 56 56 56 Total impaired loans $ — $ — $ 14,322 $ 14,322 $ 17,226 The following table presents impaired loans by class as of September 30, 2019, segregated by those for which a specific allowance was required and those for which a specific allowance was not required. 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 Commercial real estate — — 1,965 1,965 2,125 Construction and land development — — 8,750 8,750 11,131 Total impaired loans $ — $ — $ 15,542 $ 15,542 $ 18,435 |
Schedule of average investment in impaired loans and related interest income recognized | Three Months Ended December 31, 2019 Average Income Income Recorded Recognized on Recognized on Investment Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 4,593 $ 3 $ 9 Multi-family residential 148 — — Commercial real estate 1,769 — 1 Construction and land development 8,750 — — Commercial business 8 — 1 Consumer 31 — — Total loans $ 15,299 $ 3 $ 11 Three Months Ended December 31, 2018 Average Income Income Recorded Recognized on Recognized on Investment Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 5,158 $ 15 $ 5 Multi-family residential 296 5 — Commercial real estate 2,064 10 1 Construction and land development 8,752 — — Consumer 5 — — Total loans $ 16,275 $ 30 $ 6 |
Schedule of classes of the loan portfolio in which a formal risk weighting system is utilized | December 31, 2019 Special Total Pass Mention Substandard Loans (Dollars in Thousands) One-to-four family residential $ 257,164 $ 1,514 $ 4,028 $ 262,706 Multi-family residential 24,692 — — 24,692 Commercial real estate 124,425 3,691 1,473 129,589 Construction and land development 243,222 — 8,750 251,972 Loans to financial institutions 6,000 — — 6,000 Commercial business 19,145 — 15 19,160 Total loans $ 674,648 $ 5,205 $ 14,266 $ 694,119 September 30, 2019 Special Total Pass Mention Substandard Loans (Dollars in Thousands) One-to-four family 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 loans $ 685,832 $ 5,507 $ 15,542 $ 706,881 |
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 | December 31,2019 Non- Total Performing Performing Loans (Dollars in Thousands) One-to-four family residential $ 259,257 $ 3,449 $ 262,706 Leases 391 — 391 Consumer 798 56 854 Total loans $ 260,446 $ 3,505 $ 263,951 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 loans $ 266,420 $ 3,712 $ 270,132 |
Schedule of loan categories of the loan portfolio summarized by the aging categories of performing and delinquent loans and nonaccrual loans | December 31, 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 $ 259,186 $ 1,009 $ 2,511 $ 3,520 $ 262,706 $ 3,449 $ — Multi-family residential 24,692 — — — 24,692 — — Commercial real estate 128,172 — 1,417 1,417 129,589 1,473 — Construction and land development 243,222 — 8,750 8,750 251,972 8,750 — Commercial business 19,145 — 15 15 19,160 15 — Loans to financial institutions 6,000 — — — 6,000 — — Leases 391 — — — 391 — — Consumer 688 110 56 166 854 56 — Total loans $ 681,496 $ 1,119 $ 12,749 $ 13,868 $ 695,364 $ 13,743 $ — 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 $ — |
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. | Three Months Ended December 31, 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 (Dollars in Thousands) ALLL balance at September 30, 2019 $ 1,002 $ 315 $ 1,257 $ 2,034 $ 206 $ 63 $ 5 $ 13 $ 498 $ 5,393 Charge-offs — — — — — — — — — — Recoveries — — — — — — 10 — — 10 Provision (3) (60) 24 171 (5) — (11) (1) 10 125 ALLL balance at December 31, 2019 $ 999 $ 255 $ 1,281 $ 2,205 $ 201 $ 63 $ 4 $ 12 $ 508 $ 5,528 Three Months Ended December 31, 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 (Dollars in Thousands) ALLL balance at September 30, 2018 $ 1,343 $ 347 $ 1,154 $ 1,554 $ 187 $ 64 $ 18 $ 18 $ 482 $ 5,167 Charge-offs — — — — — — — — — — Recoveries — — — — — — — — — — Provision 84 25 (7) (109) 6 3 (2) (5) 5 — ALLL balance at December 31, 2018 $ 1,427 $ 372 $ 1,147 $ 1,445 $ 193 $ 67 $ 16 $ 13 $ 487 $ 5,167 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
DEPOSITS | |
Schedule of major classifications of deposits | December 31, September 30, 2019 2019 Amount Percent Amount Percent (Dollars in Thousands) Money market deposit accounts $ 85,085 11.8 % $ 75,766 10.2 % Interest-bearing checking accounts 71,640 9.9 % 58,647 7.9 % Non interest-bearing checking accounts 20,637 2.9 % 16,949 2.3 % Passbook, club and statement savings 79,244 11.0 % 80,899 10.8 % Certificates maturing in six months or less 283,818 39.4 % 294,343 39.4 % Certificates maturing in more than six months 180,511 25.0 % 218,840 29.4 % Total $ 720,935 100.0 % $ 745,444 100.0 % |
ADVANCES FROM FEDERAL HOME LO_3
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | |
Schedule of short-term borrowings from the FHLB of Pittsburgh | December 31, September 30, (Dollar Amounts in Thousands) 2019 2019 Balance at period end $ 130,000 $ 90,000 Maximum month-end balance $ 130,000 $ 90,000 Weighted-average rate at period end % % Weighted-average rate during the period % % |
ADVANCES FROM FEDERAL HOME LO_4
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | |
Schedule of collateral agreement with the FHLB | Long-term FHLB Weighted advances: Maturity range average interest Stated interest rate range December 31, September 30, Description from to rate from to 2019 2019 (Dollars in Thousands) Fixed Rate - Amortizing 1‑Oct‑19 30‑Sep‑20 — 236 Fixed Rate - Amortizing 1‑Oct‑20 30‑Sep‑21 2.70 % 1.94 % 2.83 % 12,083 14,354 Fixed Rate - Amortizing 1‑Oct‑21 30‑Sep‑22 2.82 % 1.99 % 3.05 % 7,935 8,729 Fixed Rate - Amortizing 1‑Oct‑22 30‑Sep‑23 2.88 % 1.94 % 3.11 % 6,519 6,931 Total 2.78 % $ 26,537 $ 30,250 Fixed Rate - Advances 1‑Oct‑19 30‑Sep‑20 2.76 % 1.38 % 3.06 % $ 7,284 $ 12,304 Fixed Rate - Advances 1‑Oct‑20 30‑Sep‑21 2.37 % 1.42 % 2.92 % 18,012 18,017 Fixed Rate - Advances 1‑Oct‑21 30‑Sep‑22 2.31 % 1.94 % 3.23 % 63,326 63,336 Fixed Rate - Advances 1‑Oct‑22 30‑Sep‑23 2.52 % 2.00 % 3.22 % 94,999 94,999 Fixed Rate - Advances 1‑Oct‑23 30‑Sep‑24 2.88 % 2.38 % 3.20 % 67,998 67,998 Total 2.56 % $ 251,619 $ 256,654 2.58 % Total $ 278,156 $ 286,904 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
DERIVATIVES | |
Schedule of interest rate swap agreements and the terms | Below is a summary of the interest rate swap agreements and their terms as of December 31, 2019. Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Loss (Dollars in Thousands) FHLB Advances $ 10,000 2.70 % 2.70 % 1 Mth Libor 10‑Apr‑25 10‑Apr‑25 $ (569) State and political subdivisions 21,570 3.06 % 3.07 % 3 Mth Libor 1‑Feb‑27 1‑May‑28 (1,939) State and political subdivision 2,825 3.06 % 3.06 % 3 Mth Libor 1‑Apr‑27 1‑Apr‑27 State and political subdivision 5,000 3.07 % 3.07 % 3 Mth Libor 1‑Jan‑28 1‑Jan‑28 State and political subdivision 1,235 3.07 % 3.07 % 3 Mth Libor 1‑Mar‑28 1‑Mar‑28 State and political subdivision 4,500 3.07 % 3.07 % 3 Mth Libor 1‑May‑28 1‑May‑28 State and political subdivision 3,305 3.05 % 3.05 % 3 Mth Libor 1‑Feb‑27 1‑Feb‑27 State and political subdivision 3,000 3.06 % 3.06 % 3 Mth Libor 15‑Oct‑27 15‑Oct‑27 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 (679) 90 day wholesale funding 135,000 2.51 % 2.78 % 3 Mth Libor 27‑Mar‑24 11‑Jan‑24 (5,315) $ (8,502) Below is a summary of the interest rate swap agreements and their terms as of September 30, 2019. Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Loss (Dollars in Thousands) FHLB Advances $ 10,000 % 2.70 % 1 Mth Libor 10‑Apr‑25 10‑Apr‑25 $ (719) State and political subdivisions 21,570 % 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 % 2.51 % 1 Mth Libor 15‑Feb‑24 12‑Jun‑26 (1,415) 90 day wholesale funding 135,000 % 2.78 % 3 Mth Libor 11‑Jan‑24 27‑Mar‑24 (6,605) $ (11,241) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
Schedule of deferred income taxes | December 31, September 30, 2019 2019 (Dollars in Thousands) Deferred tax assets: Allowance for loan losses $ 1,484 $ 1,488 Nonaccrual interest 505 487 Accrued vacation 7 7 Capital loss carryforward 121 121 Split dollar life insurance 9 9 Post-retirement benefits 74 76 Unrealized losses on interest rate swaps 1,354 1,836 Deferred compensation 812 809 Goodwill 66 69 Other 75 64 Employee benefit plans 257 216 Total deferred tax assets 4,764 5,182 Valuation allowance (121) (121) Total deferred tax assets, net of valuation allowance 4,643 5,061 Deferred tax liabilities: Property 133 141 Unrealized gain on equity securities 16 19 Unrealized gains on available for sale securities 1,840 2,153 Purchase accounting adjustments 245 215 Deferred loan fees 220 175 Total deferred tax liabilities 2,454 2,703 Net deferred tax assets $ 2,189 $ 2,358 |
STOCK COMPENSATION PLANS (Table
STOCK COMPENSATION PLANS (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFITS | |
Schedule of summary of the non-vested stock award activity | Three Months Ended December 31, 2019 Weighted Average Number of Grant Date Per Shares Share Fair Value Nonvested stock awards at October 1,2019 68,980 $ 15.05 Granted — — Forfeited — — Vested — — Nonvested stock awards at the December 31,2019 68,980 $ 15.05 |
Schedule of summary of the status of the company' stock options under the stock option plan | Three Months Ended December 31, 2019 Number of Weighted Average Shares Exercise Price Outstanding at October 1,2019 793,034 $ 13.86 Granted — — Exercised — — Forfeited — — Outstanding at December 31,2019 793,034 $ 13.86 Exercisable at December 31,2019 489,288 $ 12.21 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENT | |
Schedule of assets measured at fair value on recurring basis | Those assets and liabilities as of December 31, 2019 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 $ — $ 20,705 $ — $ 20,705 State and political subdivisons — 76,145 — 76,145 Mortgage-backed securities - U.S. Government agencies — 363,277 — 363,277 Corporate bonds — 70,791 — 70,791 Equity security - FHLMC preferred stock 77 — — 77 Total $ 77 $ 530,918 $ — $ 530,995 Liabilities: Interest rate swap contracts $ — $ 8,502 $ — $ 8,502 Total $ — $ 8,502 $ — $ 8,502 Those assets as of September 30, 2019 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 $ — $ 24,865 $ — $ 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 security - FHLMC preferred stock 95 — — 95 Total $ 95 $ 512,822 $ — $ 512,917 Liabilities: Interest rate swap contracts $ — $ 11,241 $ — $ 11,241 Total $ — $ 11,241 $ — $ 11,241 |
Schedule of summary of non-recurring fair value measurements | At December 31, 2019 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 14,322 $ 14,322 Real estate owned — — 491 491 Total $ — $ — $ 14,813 $ 14,813 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 |
Schedule of nonrecurring fair value measurements categorized within level 3 of the fair value hierarchy | At December 31, 2019 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Impaired loans $ 14,322 Property appraisals (1)(3) Management discount for selling costs, property type and market volatility (2) 6% to 9% discount/ 7 % Real estate owned $ 491 Property appraisals (1)(3) Management discount for selling costs, property type and market volatility (2) 22% discount 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 (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 December 31, 2019 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Cash and cash equivalents $ 28,807 $ 28,807 $ 28,807 $ — $ — Certificates of deposit 2,351 2,351 2,351 — — Investment and mortgage-backed securities held to maturity 70,219 70,710 — 70,710 — Loans receivable, net 588,847 591,745 — — 591,745 Accrued interest receivable 4,603 4,603 4,603 — — Restricted bank stock 17,579 17,579 17,579 — — Bank owned life insurance 32,010 32,010 32,010 — — Liabilities: Checking accounts 92,277 92,277 92,277 — — Money market deposit accounts 85,085 85,085 85,085 — — Passbook, club and statement savings accounts 79,244 79,244 79,244 — — Certificates of deposit 464,329 470,793 — — 470,793 Advances from FHLB - short-term 130,000 130,000 130,000 — — Advances from FHLB - long-term 278,156 284,142 — — 284,142 Accrued interest payable 2,038 2,038 2,038 — — Advances from borrowers for taxes and insurance 3,309 3,309 3,309 — — 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 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 bank 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 — — |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Dec. 31, 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/ December 31, Amortization 2019 Adjustments Amortization 2019 Period Goodwill $ 6,102 $ — $ — $ 6,102 Core deposit intangible 448 — (30) 418 10 years $ 6,550 $ — $ (30) $ 6,520 |
Schedule of future fiscal periods amortization expense for core deposit intangible | (In Thousands) 2020 $ 78 2021 93 2022 78 2023 64 2024 49 Thereafter 56 Total $ 418 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
LEASES | |
Schedule of information related to operating leases | The following table summarizes other information related to our operating leases: December 31, 2019 Weighted-average remaining lease term - operating leases in years 7.0 Weighted-average discount rate - operating leases 2.0 % |
Schedule of aggregate lease maturities and obligations | The following table presents aggregate lease maturities and obligations as of December 31, 2019: (Dollars in Thousands) 2020 $ 155 2021 210 2022 213 2023 216 2024 220 2025 and thereafter 647 Total lease payments 1,661 Less: interest 125 Present value of lease liabilities $ 1,536 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | |
Dec. 31, 2019USD ($)item | Sep. 30, 2019USD ($) | |
Significant Accounting Policies [Line Items] | ||
Number of full service branch offices | item | 9 | |
Number of banking offices | item | 10 | |
Operating right-of-use assets | $ 1,400,000 | |
Operating lease liabilities | 1,536,000 | |
Retained earnings | 51,391,000 | $ 49,625,000 |
ASU 2016-02, Leases (Topic 842) | ||
Significant Accounting Policies [Line Items] | ||
Operating right-of-use assets | 1,500,000 | |
Operating lease liabilities | 1,600,000 | |
Retained earnings | $ 75,000 | |
Philadelphia (Philadelphia County) | ||
Significant Accounting Policies [Line Items] | ||
Number of full service branch offices | item | 8 | |
PENNSYLVANIA | ||
Significant Accounting Policies [Line Items] | ||
Number of full service branch offices | item | 1 | |
Huntingdon Valley, Montgomery County | ||
Significant Accounting Policies [Line Items] | ||
Number of full service branch offices | item | 1 |
EARNINGS PER SHARE - Calculated
EARNINGS PER SHARE - Calculated basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share - basic | ||
Net income | $ 2,463 | $ 1,974 |
Weighted average common shares outstanding - basic | 8,755,165 | 8,804,096 |
Effect of CSEs - basic | 0 | 0 |
Adjusted weighted average common shares used in earnings per share computation - basic | 8,755,165 | 8,804,096 |
Earnings (loss) per share - basic (in dollars per share) | $ 0.280 | $ 0.220 |
Earnings per share - diluted | ||
Net income | $ 2,463 | $ 1,974 |
Weighted average shares outstanding - diluted | 8,755,165 | 8,804,096 |
Effect of CSEs - diluted | 170,827 | 189,276 |
Adjusted weighted average shares used in earnings per share computation - diluted | 8,925,992 | 8,993,372 |
Earnings (loss) per share - diluted (in dollars per share) | $ 0.280 | $ 0.220 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
EARNINGS PER SHARE | |||
Adjusted weighted average shares of common stock used in diluted earnings per share computation | 550,832 | 666,526 | |
Adjusted weighted average shares of common stock having exercise prices less than the current market value and are considered anti-dilutive | 242,202 | 198,084 |
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 | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 1,192 | |
Total other comprehensive income | 633 | $ 2,121 |
Ending Balance | 1,825 | |
Total accumulated other comprehensive income (loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 1,192 | (8,154) |
Other comprehensive (loss) income before reclassification | 883 | 2,121 |
Reclassification for net gains recorded in net income | (251) | |
Total other comprehensive income | 2,075 | (6,033) |
Ending Balance | 1,824 | (6,033) |
Unrealized gain (loss) on AFS securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 8,098 | (8,320) |
Other comprehensive (loss) income before reclassification | (927) | 2,705 |
Reclassification for net gains recorded in net income | (251) | |
Total other comprehensive income | 7,171 | (5,615) |
Ending Balance | 6,920 | (5,615) |
Unrealized gain (loss) on interest rate swaps | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (6,906) | 166 |
Other comprehensive (loss) income before reclassification | 1,810 | (584) |
Reclassification for net gains recorded in net income | 0 | 0 |
Total other comprehensive income | (5,096) | (418) |
Ending Balance | $ (5,096) | $ (418) |
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 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Securities Available for Sale: | |||
Amortized Cost | $ 522,158 | ||
Gross Unrealized Gains | $ 9,719 | ||
Gross Unrealized Losses | (959) | ||
Fair Value | 530,918 | $ 512,822 | 530,918 |
Equity securities, Amortized Cost | 6 | 6 | |
Equity securities, Gross Unrealized Gains | 71 | 89 | |
Equity securities, Fair Value | 77 | 95 | |
U.S. Government and agency obligations | |||
Securities Available for Sale: | |||
Amortized Cost | 20,836 | 24,960 | |
Gross Unrealized Gains | 1 | 3 | |
Gross Unrealized Losses | (98) | $ (132) | |
Fair Value | 20,705 | 24,865 | |
State and political subdivisions | |||
Securities Available for Sale: | |||
Amortized Cost | 75,965 | 47,909 | |
Gross Unrealized Gains | 463 | 484 | |
Gross Unrealized Losses | (283) | (747) | |
Fair Value | 76,145 | 47,646 | |
Mortgage-backed securities - US government agencies | |||
Securities Available for Sale: | |||
Amortized Cost | 357,032 | 362,342 | |
Gross Unrealized Gains | 6,783 | 8,836 | |
Gross Unrealized Losses | (538) | (406) | |
Fair Value | 363,277 | 370,772 | |
Corporate debt securities | |||
Securities Available for Sale: | |||
Amortized Cost | 68,325 | 67,360 | |
Gross Unrealized Gains | 2,472 | 2,217 | |
Gross Unrealized Losses | (6) | (38) | |
Fair Value | 70,791 | 69,539 | |
Total debt securities available for sale | |||
Securities Available for Sale: | |||
Amortized Cost | 502,571 | ||
Gross Unrealized Gains | 11,540 | ||
Gross Unrealized Losses | (1,289) | ||
Fair Value | 512,822 | ||
Equity security - FHLMC preferred stock | |||
Securities Available for Sale: | |||
Equity securities, Amortized Cost | 6 | 6 | |
Equity securities, Gross Unrealized Gains | 71 | 89 | |
Equity securities, Fair Value | $ 77 | $ 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 | Dec. 31, 2019 | Sep. 30, 2019 |
Securities Held to Maturity: | ||
Amortized Cost | $ 70,219 | $ 68,635 |
Gross Unrealized Gains | 1,015 | 1,064 |
Gross unrealized losses | (524) | (192) |
Fair value | 70,710 | 69,507 |
U.S. Government and agency obligations | ||
Securities Held to Maturity: | ||
Amortized Cost | 45,849 | 43,349 |
Gross Unrealized Gains | 159 | 181 |
Gross unrealized losses | (512) | (188) |
Fair value | 45,496 | 43,342 |
Mortgage-backed securities - US government agencies | ||
Securities Held to Maturity: | ||
Amortized Cost | 4,507 | 4,812 |
Gross Unrealized Gains | 221 | 238 |
Gross unrealized losses | (2) | (4) |
Fair value | 4,726 | 5,046 |
State and political subdivisions | ||
Securities Held to Maturity: | ||
Amortized Cost | 19,863 | 20,474 |
Gross Unrealized Gains | 635 | 645 |
Gross unrealized losses | (10) | |
Fair value | $ 20,488 | $ 21,119 |
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 | Dec. 31, 2018 |
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | $ (106) | $ (284) |
Less than 12 months - Fair value | 59,933 | 58,741 |
More than 12 months - Gross Unrealized Losses | (1,183) | (675) |
More than 12 months - Fair value | 67,720 | 61,989 |
Gross Unrealized Losses - Total | (1,289) | (959) |
Fair Value - Total | 127,653 | 120,730 |
U.S. Government and agency obligations | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (3) | (33) |
Less than 12 months - Fair value | 6,997 | 9,967 |
More than 12 months - Gross Unrealized Losses | (95) | (99) |
More than 12 months - Fair value | 3,866 | 3,738 |
Gross Unrealized Losses - Total | (98) | (132) |
Fair Value - Total | 10,863 | 13,705 |
Mortgage-backed securities - US government agencies | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (86) | (58) |
Less than 12 months - Fair value | 50,057 | 16,278 |
More than 12 months - Gross Unrealized Losses | (320) | (225) |
More than 12 months - Fair value | 37,056 | 23,724 |
Gross Unrealized Losses - Total | (406) | (283) |
Fair Value - Total | 87,113 | 40,002 |
State and political subdivisions | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (4) | (193) |
Less than 12 months - Fair value | 890 | 32,496 |
More than 12 months - Gross Unrealized Losses | (743) | (345) |
More than 12 months - Fair value | 23,784 | 33,505 |
Gross Unrealized Losses - Total | (747) | (538) |
Fair Value - Total | 24,674 | 66,001 |
Corporate debt securities | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (13) | |
Less than 12 months - Fair value | 1,989 | |
More than 12 months - Gross Unrealized Losses | (25) | (6) |
More than 12 months - Fair value | 3,014 | 1,022 |
Gross Unrealized Losses - Total | (38) | (6) |
Fair Value - Total | $ 5,003 | $ 1,022 |
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 | Dec. 31, 2018 |
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | $ (192) | $ (524) |
Less than 12 Months, Fair Value | 15,605 | 47,111 |
Total - Gross Unrealized Losses | (192) | (524) |
Total - Fair Value | 15,605 | 47,111 |
U.S. Government and agency obligations | ||
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | (188) | (512) |
Less than 12 Months, Fair Value | 14,811 | 44,337 |
More than 12 months - Gross Unrealized Losses | 0 | 0 |
12 Months or More, Fair Value | 0 | 0 |
Total - Gross Unrealized Losses | (188) | (512) |
Total - Fair Value | 14,811 | 44,337 |
Mortgage-backed securities - US government agencies | ||
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | (4) | (2) |
Less than 12 Months, Fair Value | 794 | 759 |
More than 12 months - Gross Unrealized Losses | 0 | |
12 Months or More, Fair Value | 0 | |
Total - Gross Unrealized Losses | (4) | (2) |
Total - Fair Value | $ 794 | 759 |
State and political subdivisions | ||
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | (10) | |
Less than 12 Months, Fair Value | 2,015 | |
More than 12 months - Gross Unrealized Losses | 0 | |
12 Months or More, Fair Value | 0 | |
Total - Gross Unrealized Losses | (10) | |
Total - Fair Value | $ 2,015 |
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 | Dec. 31, 2018 |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | ||
Less than 12 months - Gross Unrealized Losses | $ (298) | $ (808) |
Fair Value, Less than 12 Months | 75,538 | 105,852 |
More than 12 months - Gross Unrealized Losses | (1,183) | (675) |
Fair Value, 12 Months or More | 67,720 | 61,989 |
Gross Unrealized Losses -Total | (1,481) | (1,483) |
Fair Value - Total | $ 143,258 | $ 167,841 |
INVESTMENT AND MORTGAGE-BACKE_8
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of debt securities, by contractual maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Available for Sale, Amortized Cost | |
Due after one through five years | $ 20,571 |
Due after five through ten years | 47,754 |
Due after ten years | 96,801 |
Total | 165,126 |
Available for Sale, Fair Value | |
Due after one through five years | 21,104 |
Due after five through ten years | 49,688 |
Due after ten years | 96,849 |
Total | $ 167,641 |
INVESTMENT AND MORTGAGE-BACKE_9
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of debt securities, by contractual maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Held to Maturity - Amortized Cost | |
Due after one through five years | $ 1,707 |
Due after five through ten years | 24,121 |
Due after ten years | 39,884 |
Total | 65,712 |
Held to Maturity - Fair Value | |
Due after one through five years | 1,721 |
Due after five through ten years | 24,600 |
Due after ten years | 39,663 |
Total | $ 65,984 |
INVESTMENT AND MORTGAGE-BACK_10
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2019USD ($)security | |
Marketable Securities [Line Items] | |
Securities with a fair value in safekeeping account at the FHLB | $ | $ 320,800,000 |
Realized net gains (losses) | $ | 318,000 |
Required to hold securities for its borrowings | $ | 188,300,000 |
Excess securities not restricted and could be sold or transferred | $ | 132,500,000 |
Mortgage-back securities sold with an aggregate amortized cost | $ | $ 17,500,000 |
U.S. Government and agency obligations | |
Marketable Securities [Line Items] | |
Number of investment securities in debt obligations in the category of loss position less than 12 months held by company | 16 |
Number of investment securities in debt obligations in the category of loss position more than 12 months held by company | 1 |
Mortgage-backed securities - US government agencies | |
Marketable Securities [Line Items] | |
Number of investment securities in debt obligations in the category of loss position less than 12 months held by company | 21 |
Number of investment securities in debt obligations in the category of loss position more than 12 months held by company | 27 |
Corporate debt securities | |
Marketable Securities [Line Items] | |
Number of investment securities in debt obligations in the category of loss position less than 12 months held by company | 4 |
Number of investment securities in debt obligations in the category of loss position more than 12 months held by company | 1 |
State and political subdivisions | |
Marketable Securities [Line Items] | |
Number of investment securities in debt obligations in the category of loss position less than 12 months held by company | 5 |
Number of investment securities in debt obligations in the category of loss position more than 12 months held by company | 12 |
LOANS RECEIVABLE (Details)
LOANS RECEIVABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 695,364 | $ 708,233 | ||
Undisbursed portion of loans-in-process | (98,555) | (114,528) | ||
Deferred loan fees | (2,434) | (2,856) | ||
Allowance for loan losses | (5,528) | (5,393) | $ (5,167) | $ (5,167) |
Net loans | 588,847 | 585,456 | ||
One-to-four family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 262,706 | 268,780 | ||
Allowance for loan losses | (999) | (1,002) | (1,427) | (1,343) |
Multi-family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 24,692 | 30,582 | ||
Allowance for loan losses | (255) | (315) | (372) | (347) |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 129,589 | 128,521 | ||
Allowance for loan losses | (1,281) | (1,257) | (1,147) | (1,154) |
Construction and land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 251,972 | 253,368 | ||
Allowance for loan losses | (2,205) | (2,034) | (1,445) | (1,554) |
Commercial business | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 19,160 | 19,630 | ||
Allowance for loan losses | (201) | (206) | (193) | (187) |
Loans to financial institutions | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 6,000 | 6,000 | ||
Allowance for loan losses | (63) | (63) | (67) | (64) |
Leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 391 | 518 | ||
Allowance for loan losses | (4) | (5) | (16) | (18) |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 854 | 834 | ||
Allowance for loan losses | $ (12) | $ (13) | $ (13) | $ (18) |
LOANS RECEIVABLE - Summary of l
LOANS RECEIVABLE - Summary of loans individually and collectively evaluated for impairment by loan segment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Loans: | ||
Individually evaluated for impairment | $ 14,322 | $ 15,542 |
Collectively evaluated for impairment | 681,042 | 692,691 |
Total loans | 695,364 | 708,233 |
One-to-four family residential | ||
Loans: | ||
Individually evaluated for impairment | 4,028 | 4,827 |
Collectively evaluated for impairment | 258,678 | 263,953 |
Total loans | 262,706 | 268,780 |
Multi-family residential | ||
Loans: | ||
Collectively evaluated for impairment | 24,692 | 30,582 |
Total loans | 24,692 | 30,582 |
Commercial real estate | ||
Loans: | ||
Individually evaluated for impairment | 1,473 | 1,965 |
Collectively evaluated for impairment | 128,116 | 126,556 |
Total loans | 129,589 | 128,521 |
Construction and land development | ||
Loans: | ||
Individually evaluated for impairment | 8,750 | 8,750 |
Collectively evaluated for impairment | 243,222 | 244,618 |
Total loans | 251,972 | 253,368 |
Commercial business | ||
Loans: | ||
Individually evaluated for impairment | 15 | 0 |
Collectively evaluated for impairment | 19,145 | 19,630 |
Total loans | 19,160 | 19,630 |
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 | 391 | 518 |
Total loans | 391 | 518 |
Consumer | ||
Loans: | ||
Individually evaluated for impairment | 56 | 0 |
Collectively evaluated for impairment | 798 | 834 |
Total loans | $ 854 | $ 834 |
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 | Dec. 31, 2019 | 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 | 14,322 | 15,542 | |
Total Impaired Loans - Recorded Investment | 14,322 | 15,542 | |
Total impaired loans - Unpaid Principal Balance | 17,226 | 18,435 | |
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 | 4,028 | 4,827 | |
Total Impaired Loans - Recorded Investment | 4,028 | 4,827 | |
Total impaired loans - Unpaid Principal Balance | 4,392 | 5,179 | |
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 | 1,473 | 1,965 | |
Total Impaired Loans - Recorded Investment | 1,473 | 1,965 | |
Total impaired loans - Unpaid Principal Balance | 1,632 | $ 2,125 | |
Commercial business | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with No Specific Allowance - Recorded Investment | 15 | ||
Total Impaired Loans - Recorded Investment | 15 | ||
Total impaired loans - Unpaid Principal Balance | 15 | ||
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 | |
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Loans with Specific Allowance - Recorded Investment | 0 | ||
Impaired Loans with Specific Allowance - Related Allowance | 0 | ||
Impaired Loans with No Specific Allowance - Recorded Investment | 56 | ||
Total Impaired Loans - Recorded Investment | 56 | ||
Total impaired loans - Unpaid Principal Balance | $ 56 |
LOANS RECEIVABLE - Average reco
LOANS RECEIVABLE - Average recorded investment in impaired loans and related interest income recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | $ 15,299 | $ 16,275 |
Income Recognized on Accrual Basis | 3 | 30 |
Income Recognized on Cash Basis | 11 | 6 |
One-to-four family residential | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 4,593 | 5,158 |
Income Recognized on Accrual Basis | 3 | 15 |
Income Recognized on Cash Basis | 9 | 5 |
Multi-family residential | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 148 | 296 |
Income Recognized on Accrual Basis | 0 | 5 |
Income Recognized on Cash Basis | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 1,769 | 2,064 |
Income Recognized on Accrual Basis | 10 | |
Income Recognized on Cash Basis | 1 | 1 |
Construction and land development | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 8,750 | 8,752 |
Income Recognized on Accrual Basis | 0 | 0 |
Income Recognized on Cash Basis | 0 | 0 |
Commercial business | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 8 | |
Income Recognized on Cash Basis | 1 | |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 31 | 5 |
Income Recognized on Accrual Basis | 0 | 0 |
Income Recognized on Cash Basis | $ 0 | $ 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 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 695,364 | $ 708,233 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 262,706 | 268,780 |
Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 24,692 | 30,582 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 129,589 | 128,521 |
Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 251,972 | 253,368 |
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 | 19,160 | 19,630 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 854 | 834 |
Risk Rating System | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 694,119 | 706,881 |
Risk Rating System | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 262,706 | 268,780 |
Risk Rating System | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 24,692 | 30,582 |
Risk Rating System | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 129,589 | 128,521 |
Risk Rating System | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 251,972 | 253,368 |
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 | 19,160 | 19,630 |
Risk Rating System | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 674,648 | 685,832 |
Risk Rating System | Pass | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 257,164 | 262,164 |
Risk Rating System | Pass | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 24,692 | 30,582 |
Risk Rating System | Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 124,425 | 122,838 |
Risk Rating System | Pass | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 243,222 | 244,618 |
Risk Rating System | Pass | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,000 | 6,000 |
Risk Rating System | Pass | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 19,145 | 19,630 |
Risk Rating System | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,205 | 5,507 |
Risk Rating System | Special Mention | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,514 | 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 | 3,691 | 3,718 |
Risk Rating System | Special Mention | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Special Mention | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Special Mention | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 14,266 | 15,542 |
Risk Rating System | Substandard | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 4,028 | 4,827 |
Risk Rating System | Substandard | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,473 | 1,965 |
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 | $ 15 | $ 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 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 695,364 | $ 708,233 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 262,706 | 268,780 |
Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 391 | 518 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 854 | 834 |
Non Risk Rating System | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 263,951 | 270,132 |
Non Risk Rating System | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 262,706 | 268,780 |
Non Risk Rating System | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 391 | 518 |
Non Risk Rating System | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 854 | 834 |
Non Risk Rating System | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 260,446 | 266,420 |
Non Risk Rating System | Performing | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 259,257 | 265,068 |
Non Risk Rating System | Performing | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 391 | 518 |
Non Risk Rating System | Performing | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 798 | 834 |
Non Risk Rating System | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,505 | 3,712 |
Non Risk Rating System | Nonperforming | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,449 | 3,712 |
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 | $ 56 | $ 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 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 681,496 | $ 693,975 |
Past Due | 13,868 | 14,258 |
Total Loans | 695,364 | 708,233 |
Non- Accrual | 13,743 | 13,935 |
90 Days+ Past Due and Accruing | 0 | 0 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,119 | 845 |
90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12,749 | 13,413 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 259,186 | 264,784 |
Past Due | 3,520 | 3,996 |
Total Loans | 262,706 | 268,780 |
Non- Accrual | 3,449 | 3,712 |
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 | 1,009 | 750 |
One-to-four family residential | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,511 | 3,246 |
Multi-family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 24,692 | 30,582 |
Past Due | 0 | 0 |
Total Loans | 24,692 | 30,582 |
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 | 128,172 | 127,104 |
Past Due | 1,417 | 1,417 |
Total Loans | 129,589 | 128,521 |
Non- Accrual | 1,473 | 1,473 |
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 | 0 |
Commercial real estate | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,417 | 1,417 |
Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 243,222 | 244,618 |
Past Due | 8,750 | 8,750 |
Total Loans | 251,972 | 253,368 |
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 | 19,145 | 19,630 |
Past Due | 15 | 0 |
Total Loans | 19,160 | 19,630 |
Non- Accrual | 15 | 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 | 15 | 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 | 391 | 518 |
Past Due | 0 | 0 |
Total Loans | 391 | 518 |
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 | 688 | 739 |
Past Due | 166 | 95 |
Total Loans | 854 | 834 |
Non- Accrual | 56 | 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 | 110 | 95 |
Consumer | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 56 | $ 0 |
LOANS RECEIVABLE - Activity in
LOANS RECEIVABLE - Activity in allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
ALLL balance | $ 5,393 | $ 5,167 | |
Charge-offs | 0 | 0 | |
Recoveries | 10 | 0 | |
Provision | 125 | 0 | |
ALLL balance | 5,528 | 5,167 | |
Individually evaluated for impairment | 0 | $ 0 | |
Collectively evaluated for impairment | 5,528 | 5,393 | |
One-to-four family residential | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
ALLL balance | 1,002 | 1,343 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | (3) | 84 | |
ALLL balance | 999 | 1,427 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 999 | 1,002 | |
Multi-family residential | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
ALLL balance | 315 | 347 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | (60) | 25 | |
ALLL balance | 255 | 372 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 255 | 315 | |
Commercial real estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
ALLL balance | 1,257 | 1,154 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | 24 | (7) | |
ALLL balance | 1,281 | 1,147 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1,281 | 1,257 | |
Construction and land development | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
ALLL balance | 2,034 | 1,554 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | 171 | (109) | |
ALLL balance | 2,205 | 1,445 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 2,205 | 2,034 | |
Commercial business | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
ALLL balance | 206 | 187 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | (5) | 6 | |
ALLL balance | 201 | 193 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 201 | 206 | |
Loans to financial institutions | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
ALLL balance | 63 | 64 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | 3 | ||
ALLL balance | 63 | 67 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 63 | 63 | |
Leases | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
ALLL balance | 5 | 18 | |
Charge-offs | 0 | 0 | |
Recoveries | 10 | 0 | |
Provision | (11) | (2) | |
ALLL balance | 4 | 16 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 4 | 5 | |
Consumer | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
ALLL balance | 13 | 18 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | (1) | (5) | |
ALLL balance | 12 | 13 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 12 | 13 | |
Unallocated | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
ALLL balance | 498 | 482 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | 10 | 5 | |
ALLL balance | 508 | $ 487 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | $ 508 | $ 498 |
LOANS RECEIVABLE - Additional I
LOANS RECEIVABLE - Additional Information 2 (Details) | 3 Months Ended | |
Dec. 31, 2019USD ($)loan | Sep. 30, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans default | loan | 9 | |
Loans classified as troubled debt restructurings ("TDRs"), Recorded investment | $ 5,500,000 | |
Loans receivable, net | 588,847,000 | $ 585,456,000 |
Carrying amount | $ 695,364,000 | $ 708,233,000 |
Nonperforming | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans default | loan | 3 | |
Loans classified as troubled debt restructurings ("TDRs"), Recorded investment | $ 4,900,000 | |
Amount of TDR loans, default | 10,600,000 | |
Nonperforming | Commercial and residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans classified as troubled debt restructurings ("TDRs"), Recorded investment | $ 428,000 | |
Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans default | loan | 5 | |
Loans classified as troubled debt restructurings ("TDRs"), Recorded investment | $ 135,000 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Amount | ||
Money market deposit accounts | $ 85,085 | $ 75,766 |
Interest-bearing checking accounts | 71,640 | 58,647 |
Non interest-bearing checking accounts | 20,637 | 16,949 |
Passbook, club and statement savings | 79,244 | 80,899 |
Certificates maturing in six months or less | 283,818 | 294,343 |
Certificates maturing in more than six months | 180,511 | 218,840 |
Total deposits | $ 720,935 | $ 745,444 |
Percent | ||
Non interest-bearing checking accounts | 2.90% | 2.30% |
Interest-bearing checking accounts | 9.90% | 7.90% |
Money market deposit accounts | 11.80% | 10.20% |
Passbook, club and statement savings | 11.00% | 10.80% |
Certificates maturing in six months or less | 39.40% | 39.40% |
Certificates maturing in more than six months | 25.00% | 29.40% |
Total | 100.00% | 100.00% |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
DEPOSITS | ||
Certificates of $250,000 and over | $ 146.5 | $ 182.8 |
ADVANCES FROM FEDERAL HOME LO_5
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | |||
Balance at year-end | $ 130,000 | $ 90,000 | $ 90,000 |
Maximum month-end balance | $ 130,000 | $ 90,000 | |
Weight-average rate at year-end | 1.88% | 2.32% | |
Weight-average rate during the year | 2.01% | 2.53% |
ADVANCES FROM FEDERAL HOME LO_6
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM - Additional Information (Details) $ in Thousands | Dec. 31, 2019USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($) |
Short-term Debt [Line Items] | |||
Advances from Federal Home Loan Bank (short-term) | $ 130,000 | $ 90,000 | $ 90,000 |
Unsecured borrowing facilities with ACBB and PNC | $ 12,500 | $ 10,000 | |
Coupon | 2.58% | ||
Interest rate swap contract one | |||
Short-term Debt [Line Items] | |||
Number of 30 day FHLB advances | loan | 7 | 7 | |
Number of 90 day FHLB advances | loan | 2 | ||
Advances from Federal Home Loan Bank (short-term) | $ 130,000 | ||
Coupon | 90.00% |
ADVANCES FROM FEDERAL HOME LO_7
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.58% | |
Amount | $ 278,156 | $ 286,904 |
Fixed Rate - Amortizing | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 26,537 | 30,250 |
Weighted average interest rate | 2.78% | |
Long-term FHLB advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 251,619 | 256,654 |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 19 to 30 Sep 20 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | 0 | 236 |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 20 to 30 Sep 21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 12,083 | 14,354 |
Long-term | 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% | |
Long-term | 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% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 20 to 30 Sep 21 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.70% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 21 to 30 Sep 22 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 7,935 | 8,729 |
Long-term | 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% | |
Long-term | 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% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 21 to 30 Sep 22 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.82% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 22 to 30 Sep 23 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 6,519 | 6,931 |
Long-term | 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% | |
Long-term | 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% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 22 to 30 Sep 23 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.88% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 19 to 30 Sep 20 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 7,284 | 12,304 |
Long-term | 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% | |
Long-term | 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% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 19 to 30 Sep 20 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.76% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 20 to 30 Sep 21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 18,012 | 18,017 |
Long-term | 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% | |
Long-term | 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% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 20 to 30 Sep 21 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.37% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 21 to 30 Sep 22 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 63,326 | 63,336 |
Long-term | 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% | |
Long-term | 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% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 21 to 30 Sep 22 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.31% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 22 to 30 Sep 23 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 94,999 | 94,999 |
Long-term | 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% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 22 to 30 Sep 23 | Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 3.22% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 22 to 30 Sep 23 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.52% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 23 to 30 Sep 24 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 67,998 | $ 67,998 |
Long-term | 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% | |
Long-term | 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% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 23 to 30 Sep 24 | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.88% | |
Long-term | Long-term FHLB advances | Weighted average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Weighted average interest rate | 2.56% |
DERIVATIVES (Details)
DERIVATIVES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Derivative [Line Items] | |||
Unrealized Gain (Loss) | $ (8,502) | $ (11,241) | |
Interest rate swap contract maturing on 10 Apr 2025 | |||
Derivative [Line Items] | |||
Hedge Item | FHLB Advances | FHLB Advances | |
Notional Amount | $ 10,000 | $ 10,000 | |
Pay rate | 2.70% | 2.70% | |
Receive Rate | 1 Mth Libor | 1 Mth Libor | |
Maturity date | Apr. 10, 2025 | Apr. 10, 2025 | |
Unrealized Gain (Loss) | $ (569) | $ (719) | |
Interest rate swap contract maturing on 1 May 2028 | |||
Derivative [Line Items] | |||
Hedge Item | State and political subdivisions | State and political subdivisions | |
Notional Amount | $ 21,570 | $ 21,570 | |
Pay rate | 3.07% | 3.07% | |
Receive Rate | 3 Mth Libor | 3 Mth Libor | |
Maturity date | May 1, 2028 | May 1, 2028 | |
Unrealized Gain (Loss) | $ (1,939) | $ (2,502) | |
Interest rate swap contract maturing on 1 Apr 2027 | |||
Derivative [Line Items] | |||
Hedge Item | State and political subdivision | ||
Notional Amount | $ 2,825 | ||
Pay rate | 3.06% | ||
Receive Rate | 3 Mth Libor | ||
Maturity date | Apr. 1, 2027 | ||
Interest rate swap contract maturing on 1 Jan 2028 | |||
Derivative [Line Items] | |||
Hedge Item | State and political subdivision | ||
Notional Amount | $ 5,000 | ||
Pay rate | 3.07% | ||
Receive Rate | 3 Mth Libor | ||
Maturity date | Jan. 1, 2028 | ||
Interest rate swap contract maturing on 1 Mar 2028 | |||
Derivative [Line Items] | |||
Hedge Item | State and political subdivision | ||
Notional Amount | $ 1,235 | ||
Pay rate | 3.07% | ||
Receive Rate | 3 Mth Libor | ||
Maturity date | Mar. 1, 2028 | ||
Interest rate swap contract maturing on 1 May 2028 | |||
Derivative [Line Items] | |||
Hedge Item | State and political subdivision | ||
Notional Amount | $ 4,500 | ||
Pay rate | 3.07% | ||
Receive Rate | 3 Mth Libor | ||
Maturity date | May 1, 2028 | ||
Interest rate swap contract maturing on 1 Feb 2027 | |||
Derivative [Line Items] | |||
Hedge Item | State and political subdivision | ||
Notional Amount | $ 3,305 | ||
Pay rate | 3.05% | ||
Receive Rate | 3 Mth Libor | ||
Maturity date | Feb. 1, 2027 | ||
Interest rate swap contract maturing on 15 Oct 2027 | |||
Derivative [Line Items] | |||
Hedge Item | State and political subdivision | ||
Notional Amount | $ 3,000 | ||
Pay rate | 3.06% | ||
Receive Rate | 3 Mth Libor | ||
Maturity date | Oct. 15, 2027 | ||
Interest rate swap contract maturing on 1 Aug 2026 | |||
Derivative [Line Items] | |||
Hedge Item | Commercial loans | Commercial loans | |
Notional Amount | $ 17,339 | $ 17,339 | |
Pay rate | 5.74% | 5.74% | |
Receive Rate | 1 Mth Libor +225 to 276 bp | 1 Mth Libor +225 to 276 bp | |
Maturity date | Aug. 1, 2026 | Aug. 1, 2026 | |
Unrealized Gain (Loss) | $ 0 | $ 0 | |
Interest rate swap contract maturing on 12 Jun 2026 | |||
Derivative [Line Items] | |||
Hedge Item | 30 day wholesale funding | 30 day wholesale funding | |
Notional Amount | $ 65,000 | $ 65,000 | |
Pay rate | 2.51% | 2.51% | |
Receive Rate | 1 Mth Libor | 1 Mth Libor | |
Maturity date | Jun. 12, 2026 | Jun. 12, 2026 | |
Unrealized Gain (Loss) | $ (679) | $ (1,415) | |
Interest rate swap contract maturing on 11 Jan 24 | |||
Derivative [Line Items] | |||
Hedge Item | 90 day wholesale funding | ||
Notional Amount | $ 135,000 | ||
Pay rate | 2.78% | ||
Receive Rate | 3 Mth Libor | ||
Maturity date | Jan. 11, 2024 | ||
Unrealized Gain (Loss) | $ (5,315) | ||
Interest rate swap contract maturing on 27 Mar 24 | |||
Derivative [Line Items] | |||
Hedge Item | 90 day wholesale funding | ||
Notional Amount | $ 135,000 | ||
Pay rate | 2.78% | ||
Receive Rate | 3 Mth Libor | ||
Maturity date | Mar. 27, 2024 | ||
Unrealized Gain (Loss) | $ (6,605) |
DERIVATIVES - Additional Inform
DERIVATIVES - Additional Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
DERIVATIVES | ||
Income recognized as ineffectiveness through earnings | $ 2,000 | $ 3,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Deferred tax assets: | ||
Allowance for loan losses | $ 1,484 | $ 1,488 |
Nonaccrual interest | 505 | 487 |
Accrued vacation | 7 | 7 |
Capital loss carryforward | 121 | 121 |
Split dollar life insurance | 9 | 9 |
Post-retirement benefits | 74 | 76 |
Unrealized losses on interest rate swaps | 1,354 | 1,836 |
Deferred compensation | 812 | 809 |
Goodwill | 66 | 69 |
Other | 75 | 64 |
Employee benefit plans | 257 | 216 |
Total deferred tax assets | 4,764 | 5,182 |
Valuation allowance | (121) | (121) |
Total deferred tax assets, net of valuation allowance | 4,643 | 5,061 |
Deferred tax liabilities: | ||
Property | 133 | 141 |
Unrealized gain on equity securities | 16 | 19 |
Unrealized gains on available for sale securities | 1,840 | 2,153 |
Purchase accounting adjustments | 245 | 215 |
Deferred loan fees | 220 | 175 |
Total deferred tax liabilities | 2,454 | 2,703 |
Net deferred tax assets | $ 2,189 | $ 2,358 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
INCOME TAXES | |||
Period of capital gains recognized | 5 years | ||
Valuation allowance | $ (121,000) | $ (121,000) | |
Income tax expense | $ 566,000 | $ 429,000 |
STOCK COMPENSATION PLANS - Summ
STOCK COMPENSATION PLANS - Summary of non-vested stock award activity (Details) | 3 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of Shares | |
Non-vested stock awards at beginning of year | shares | 68,980 |
Granted | shares | 0 |
Forfeited | shares | 0 |
Vested | shares | 0 |
Non-vested stock awards at the end of the period | shares | 68,980 |
Weighted Average Grant Date Fair Value | |
Nonvested stock awards at beginning of year | $ / shares | $ 15.05 |
Granted | $ / shares | 0 |
Forfeited | $ / shares | 0 |
Vested | $ / shares | 0 |
Non-vested stock awards at the end of the period | $ / shares | $ 15.05 |
STOCK COMPENSATION PLANS - Su_2
STOCK COMPENSATION PLANS - Summary of status of stock options under Stock Option Plan (Details 1) - 2008 Option Plan and 2014 SIP - Stock Options | 3 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of Shares | |
Options outstanding at beginning of year | shares | 793,034 |
Granted | shares | 0 |
Forfeited | shares | 0 |
Outstanding at the end of the period | shares | 793,034 |
Exercisable at December 31 | shares | 489,288 |
Weighted Average Exercise Price | |
Options outstanding at beginning of year | $ / shares | $ 13.86 |
Granted | $ / shares | 0 |
Forfeited | $ / shares | 0 |
Outstanding at the end of the period | $ / shares | 13.86 |
Exercisable at December 31 | $ / shares | $ 12.21 |
STOCK COMPENSATION PLANS - 2008
STOCK COMPENSATION PLANS - 2008 Recognition and Retention Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2018 | Aug. 31, 2016 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 0 | ||
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 | $ 2.5 | ||
Average price per share of common stock purchased in the open market | $ 11.49 | ||
Number of shares granted | 8,209 | 7,473 |
STOCK COMPENSATION PLANS - Opti
STOCK COMPENSATION PLANS - Option Plan (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||
Jul. 31, 2019 | Mar. 31, 2018 | May 30, 2017 | Mar. 31, 2017 | Aug. 31, 2016 | Feb. 28, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | 0 | ||||||||
2008 Stock Option Plan (the "2008 Option Plan") | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | 18,235 | 283 | |||||||
2008 Stock Option Plan (the "2008 Option Plan") | Stock Options | |||||||||
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 | ||||||||
Number of shares purchased for award | 18,866 | ||||||||
2014 Stock Incentive Plan (the "2014 SIP") | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | 25,000 | 17,128 | 3,027 | ||||||
2014 Stock Incentive Plan (the "2014 SIP") | Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares for issuance pursuant to options | 714,145 | ||||||||
Number of shares granted | 22,828 | 8,634 | |||||||
2014 Stock Incentive Plan (the "2014 SIP") | Restricted stock awards or units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of common stock available for issuance | 285,655 | ||||||||
Number of shares granted | 233,500 | ||||||||
2008 RRP and 2014 SIP | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares purchased for award | 605,000 | ||||||||
Number of shares granted | 18,291 | ||||||||
2008 RRP and 2014 SIP | Restricted stock awards or units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period of options | 5 years | ||||||||
Recognized compensation expense | $ 136,000 | $ 157,000 | |||||||
Additional compensation expense for shares awarded remained unrecognized | 715,000 | ||||||||
2008 Option Plan and 2014 SIP | Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted | 39,702 | 159,265 | |||||||
Recognized compensation expense | $ 229,000 | $ 150,000 | |||||||
Additional compensation expense for shares awarded remained unrecognized | $ 550,000 |
STOCK COMPENSATION PLANS - Op_2
STOCK COMPENSATION PLANS - Option Granted (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average remaining contractual term for options outstanding | 6 years 2 months 12 days | ||
Exercise price and fair value | $ 18.46 | ||
2008 Option Plan and 2014 SIP | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized compensation expense | $ 229,000 | $ 150,000 | |
Additional compensation expense for shares awarded remained unrecognized | $ 550,000 | ||
Weighted average period for recognition of nonvested awards | 2 years 10 months 24 days | ||
2008 Option Plan and 2014 SIP | Stock Options | Granted in fiscal 2009 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated fair value of options granted per share | $ 2.98 | ||
2008 Option Plan and 2014 SIP | Stock Options | Granted in fiscal 2010 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated fair value of options granted per share | 2.92 | ||
2008 Option Plan and 2014 SIP | Stock Options | Granted in fiscal 2013 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated fair value of options granted per share | 3.34 | ||
2008 Option Plan and 2014 SIP | Stock Options | Granted in fiscal 2014 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated fair value of options granted per share | 4.67 | ||
2008 Option Plan and 2014 SIP | Stock Options | Granted in fiscal 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated fair value of options granted per share | 4.58 | ||
2008 Option Plan and 2014 SIP | Stock Options | Granted in fiscal 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated fair value of options granted per share | 2.13 | ||
2008 Option Plan and 2014 SIP | Stock Options | Granted in fiscal 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated fair value of options granted per share | $ 3.18 | ||
Fair value, valuation method | Black-Scholes pricing model | ||
Expected term | 7 years | ||
Volatility rate | 14.37% | ||
Expected interest rate | 2.22% | ||
Expected yield | 0.69% | ||
2008 Option Plan and 2014 SIP | Stock Options | Granted in fiscal 2017 | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price and fair value | $ 17.43 | ||
2008 Option Plan and 2014 SIP | Stock Options | Granted in fiscal 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Estimated fair value of options granted per share | $ 3.63 | ||
2008 Option Plan and 2014 SIP | Stock Options | Granted In March 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value, valuation method | Black-Scholes pricing model | ||
Expected term | 7 years | ||
Volatility rate | 15.90% | ||
Expected interest rate | 2.82% | ||
Expected yield | 1.08% | ||
2008 Option Plan and 2014 SIP | Stock Options | Granted in fiscal 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price and fair value | $ 18.16 | ||
Expected term | 7 years | ||
Volatility rate | 17.76% | ||
Expected interest rate | 1.87% | ||
Expected yield | 1.10% |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Sep. 30, 2019 | |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | $ 1,300 | |
Aggregate undisbursed portion of loans-in-process | 98,555 | $ 114,528 |
Loan Origination Commitments | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | 42,700 | 32,400 |
Aggregate undisbursed portion of loans-in-process | $ 98,600 | $ 114,500 |
Loan Origination Commitments | Minimum | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Market interest rate on fixed and variable rate loans | 1.99% | 1.99% |
Loan Origination Commitments | Maximum | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Market interest rate on fixed and variable rate loans | 6.25% | 6.50% |
Unused lines of Credit | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | $ 35,800 | $ 37,500 |
Letters of Credit | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | $ 1,300 | $ 1,500 |
FAIR VALUE MEASUREMENT - Assets
FAIR VALUE MEASUREMENT - Assets measured at fair value on recurring basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Assets: | ||
Assets, Total | $ 530,995 | $ 512,917 |
Liabilities: | ||
Liabilities, Total | 11,241 | |
Level 1 | ||
Assets: | ||
Assets, Total | 77 | 95 |
Level 2 | ||
Assets: | ||
Assets, Total | 530,918 | 512,822 |
Liabilities: | ||
Liabilities, Total | 11,241 | |
U.S. Government and agency obligations | ||
Assets: | ||
Assets, Total | 20,705 | 24,865 |
U.S. Government and agency obligations | Level 2 | ||
Assets: | ||
Assets, Total | 20,705 | 24,865 |
State and political subdivisions | ||
Assets: | ||
Assets, Total | 76,145 | 47,646 |
State and political subdivisions | Level 2 | ||
Assets: | ||
Assets, Total | 76,145 | 47,646 |
Mortgage-backed securities - US government agencies | ||
Assets: | ||
Assets, Total | 363,277 | 370,772 |
Mortgage-backed securities - US government agencies | Level 2 | ||
Assets: | ||
Assets, Total | 363,277 | 370,772 |
Corporate bonds | ||
Assets: | ||
Assets, Total | 70,791 | 69,539 |
Corporate bonds | Level 2 | ||
Assets: | ||
Assets, Total | 70,791 | 69,539 |
Equity security - FHLMC preferred stock | ||
Assets: | ||
Assets, Total | 77 | 95 |
Equity security - FHLMC preferred stock | Level 1 | ||
Assets: | ||
Assets, Total | 77 | 95 |
Interest rate swap contracts | ||
Assets: | ||
Assets, Total | 11,241 | |
Liabilities: | ||
Liabilities, Total | 8,502 | |
Interest rate swap contracts | Level 2 | ||
Assets: | ||
Assets, Total | $ 11,241 | |
Liabilities: | ||
Liabilities, Total | $ 8,502 |
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 | Dec. 31, 2019 | Sep. 30, 2019 |
FAIR VALUE MEASUREMENT | ||
Impaired loans | $ 14,322 | $ 15,542 |
Real estate owned | 491 | 348 |
Total | 14,813 | 15,890 |
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 | 14,322 | 15,542 |
Real estate owned | 491 | 348 |
Total | $ 14,813 | $ 15,890 |
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 | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) |
FAIR VALUE MEASUREMENT | ||
Impaired loans | $ 14,322 | $ 15,542 |
Real estate owned | 491 | 348 |
Level 3 | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans | 14,322 | 15,542 |
Real estate owned | $ 491 | $ 348 |
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 | |
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 | |
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 | |
Real estate owned measurement input (in percent) | 22 | 22 |
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 | |
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 | |
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 |
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 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Assets: | ||||
Cash and cash equivalents | $ 28,807 | $ 47,968 | ||
Certificates of deposit | 2,351 | 2,351 | ||
Fair Value | 530,918 | 512,822 | $ 530,918 | |
Amortized Cost | 70,219 | 68,635 | ||
Equity securities | 77 | 95 | ||
Loans receivable, net | 588,847 | 585,456 | ||
Accrued interest receivable | 4,603 | 4,549 | ||
Restricted stock-at cost | 17,579 | 16,406 | ||
Bank owned life insurance | 32,010 | 31,841 | ||
Liabilities: | ||||
Passbook, club and statement savings accounts | 79,244 | 80,899 | ||
Advances from FHLB short-term | 130,000 | 90,000 | $ 90,000 | |
Advances from FHLB long-term | 278,156 | 286,904 | ||
Accrued interest payable | 2,038 | 4,328 | ||
Advances from borrowers for taxes and insurance | 3,309 | 2,332 | ||
Carrying Amount | ||||
Assets: | ||||
Cash and cash equivalents | 28,807 | 47,968 | ||
Certificates of deposit | 2,351 | 2,351 | ||
Amortized Cost | 70,219 | 68,635 | ||
Loans receivable, net | 588,847 | 585,456 | ||
Accrued interest receivable | 4,603 | 4,549 | ||
Restricted stock-at cost | 17,579 | 16,406 | ||
Bank owned life insurance | 32,010 | 31,841 | ||
Liabilities: | ||||
Checking accounts | 92,277 | 75,596 | ||
Money market deposit accounts | 85,085 | 75,766 | ||
Passbook, club and statement savings accounts | 79,244 | 80,899 | ||
Certificates of deposit | 464,329 | 513,183 | ||
Advances from FHLB short-term | 130,000 | 90,000 | ||
Advances from FHLB long-term | 278,156 | 286,904 | ||
Accrued interest payable | 2,038 | 4,328 | ||
Advances from borrowers for taxes and insurance | 3,309 | 2,332 | ||
Fair Value | ||||
Assets: | ||||
Cash and cash equivalents | 28,807 | 47,968 | ||
Certificates of deposit | 2,351 | 2,351 | ||
Amortized Cost | 70,710 | 69,507 | ||
Loans receivable, net | 591,745 | 585,476 | ||
Accrued interest receivable | 4,603 | 4,549 | ||
Restricted stock-at cost | 17,579 | 16,406 | ||
Bank owned life insurance | 32,010 | 31,841 | ||
Liabilities: | ||||
Checking accounts | 92,277 | 75,596 | ||
Money market deposit accounts | 85,085 | 75,766 | ||
Passbook, club and statement savings accounts | 79,244 | 80,899 | ||
Certificates of deposit | 470,793 | 529,099 | ||
Advances from FHLB short-term | 130,000 | 90,000 | ||
Advances from FHLB long-term | 284,142 | 293,839 | ||
Accrued interest payable | 2,038 | 4,328 | ||
Advances from borrowers for taxes and insurance | 3,309 | 2,332 | ||
Level 1 | ||||
Assets: | ||||
Cash and cash equivalents | 28,807 | 47,968 | ||
Certificates of deposit | 2,351 | 2,351 | ||
Amortized Cost | 0 | 0 | ||
Loans receivable, net | 0 | 0 | ||
Accrued interest receivable | 4,603 | 4,549 | ||
Restricted stock-at cost | 17,579 | 16,406 | ||
Bank owned life insurance | 32,010 | 31,841 | ||
Liabilities: | ||||
Checking accounts | 92,277 | 75,596 | ||
Money market deposit accounts | 85,085 | 75,766 | ||
Passbook, club and statement savings accounts | 79,244 | 80,899 | ||
Certificates of deposit | 0 | 0 | ||
Advances from FHLB short-term | 130,000 | 90,000 | ||
Advances from FHLB long-term | 0 | 0 | ||
Accrued interest payable | 2,038 | 4,328 | ||
Advances from borrowers for taxes and insurance | 3,309 | 2,332 | ||
Level 2 | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Certificates of deposit | 0 | 0 | ||
Amortized Cost | 70,710 | 69,507 | ||
Loans receivable, net | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Restricted stock-at cost | 0 | 0 | ||
Bank owned life insurance | 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 | ||
Level 3 | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Certificates of deposit | 0 | 0 | ||
Amortized Cost | 0 | 0 | ||
Loans receivable, net | 591,745 | 585,476 | ||
Accrued interest receivable | 0 | 0 | ||
Restricted stock-at cost | 0 | 0 | ||
Bank owned life insurance | 0 | 0 | ||
Liabilities: | ||||
Checking accounts | 0 | 0 | ||
Money market deposit accounts | 0 | 0 | ||
Passbook, club and statement savings accounts | 0 | 0 | ||
Certificates of deposit | 470,793 | 529,099 | ||
Advances from FHLB short-term | 0 | 0 | ||
Advances from FHLB long-term | 284,142 | 293,839 | ||
Accrued interest payable | 0 | 0 | ||
Advances from borrowers for taxes and insurance | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Additi
FAIR VALUE MEASUREMENT - Additional Information (Details) $ in Millions | Dec. 31, 2019USD ($) |
Level 2 | |
FAIR VALUE MEASUREMENT | |
Collateral dependent impaired loans, fair value | $ 14.3 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Related to acquisition of Polonia Bancorp (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill | ||
Balance, Goodwill | $ 6,102 | |
Balance, Goodwill | 6,102 | |
Core deposit intangible | ||
Balance | 448 | |
Balance | 418 | |
GOODWILL AND OTHER INTANGIBLE ASSETS, Total | ||
Amortization | (30) | $ (33) |
Polonia Bancorp | ||
Goodwill | ||
Balance, Goodwill | 6,102 | |
Additions/Adjustments | 0 | |
Balance, Goodwill | 6,102 | |
GOODWILL AND OTHER INTANGIBLE ASSETS, Total | ||
Balance, Total | 6,550 | |
Additions/Adjustments | 0 | |
Amortization | (30) | |
Balance, Total | 6,520 | |
Polonia Bancorp | Core deposit intangible | ||
Core deposit intangible | ||
Balance | 448 | |
Additions/Adjustments | 0 | |
Amortization | (30) | |
Balance | $ 418 | |
Amortization Period | 10 years |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Future fiscal periods amortization expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
2020 | $ 78 | |
2021 | 93 | |
2022 | 78 | |
2023 | 64 | |
2024 | 49 | |
Thereafter | 56 | |
Total | $ 418 | $ 448 |
LEASES (Details)
LEASES (Details) | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease ROU assets | $ 1,400,000 |
Operating lease liabilities | 1,536,000 |
Operating lease cost | $ 51,000 |
Weighted-average remaining lease term - operating leases in years | 7 years |
Weighted-average discount rate - operating leases | 2.00% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (in years) | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term (in years) | 9 years |
LEASES - Aggregate lease maturi
LEASES - Aggregate lease maturities and obligations (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Aggregate lease maturities and obligations | |
2020 | $ 155 |
2021 | 210 |
2022 | 213 |
2023 | 216 |
2024 | 220 |
2025 and thereafter | 647 |
Total lease payments | 1,661 |
Less: interest | 125 |
Present value of lease liabilities | $ 1,536 |