Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 09, 2020 | Mar. 29, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2020 | ||
Document Transition Report | false | ||
Entity Registrant Name | PRUDENTIAL BANCORP, INC. | ||
Entity Central Index Key | 0001578776 | ||
Entity File Number | 000-55084 | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 46-2935427 | ||
Entity Address, Address Line One | 1834 WEST OREGON AVENUE | ||
Entity Address, City or Town | PHILADELPHIA | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19145 | ||
City Area Code | 215 | ||
Local Phone Number | 755-1500 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | PBIP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 115.2 | ||
Entity Common Stock Shares Outstanding | 8,098,675 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
ASSETS | ||
Cash and amounts due from depository institutions | $ 2,781 | $ 2,395 |
Interest-bearing deposits | 114,300 | 45,573 |
Total cash and cash equivalents | 117,081 | 47,968 |
Certificates of deposit | 2,102 | 2,351 |
Investment and mortgage-backed securities available for sale at fair value | 420,364 | 512,822 |
Investment and mortgage-backed securities held to maturity (fair value-September 30, 2020, $24,330; September 30, 2019, $69,507) | 22,860 | 68,635 |
Equity securities | 51 | 95 |
Loans receivable-net of allowance for loan losses (September 30, 2020, $8,303; September 30, 2019, $5,393) | 588,300 | 585,456 |
Accrued interest receivable | 4,699 | 4,549 |
Real estate owned | 348 | |
Restricted bank stock-at cost | 12,532 | 16,406 |
Office properties and equipment-net | 7,129 | 7,206 |
Bank owned life insurance (BOLI) | 32,498 | 31,841 |
Deferred income taxes, net | 3,902 | 2,358 |
Goodwill | 6,102 | 6,102 |
Core deposit intangible | 340 | 448 |
Prepaid expenses and other assets | 5,393 | 2,849 |
TOTAL ASSETS | 1,223,353 | 1,289,434 |
Deposits: | ||
Non-interest-bearing | 30,002 | 16,949 |
Interest-bearing | 740,947 | 728,495 |
Total deposits | 770,949 | 745,444 |
Advances from Federal Home Loan Bank - Short Term | 25,000 | 90,000 |
Advances from Federal Home Loan Bank - Long Term | 260,253 | 286,904 |
Accrued interest payable | 3,374 | 4,328 |
Advances from borrowers for taxes and insurance | 2,798 | 2,332 |
Interest rate swap contracts | 20,960 | 11,241 |
Accounts payable and accrued expenses | 10,902 | 9,574 |
Total liabilities | 1,094,236 | 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 8,138,675 outstanding at September 30, 2020; 10,819,006 issued and 8,889,447 outstanding at September 30, 2019 | 108 | 108 |
Additional paid-in capital | 118,270 | 118,384 |
Treasury stock, at cost: 2,680,331 shares at September 30, 2020 and 1,929,559 shares at September 30, 2019 | (39,207) | (29,698) |
Retained earnings | 52,889 | 49,625 |
Accumulated other comprehensive (loss) income | (2,943) | 1,192 |
Total stockholders' equity | 129,117 | 139,611 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,223,353 | $ 1,289,434 |
CONSOLIDATED STATEMENT OF FIN_2
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION | ||
Investment and mortgage-backed securities held to maturity, fair value (in dollars) | $ 24,330 | $ 69,507 |
Allowance for loan losses on loans receivable (in dollars) | $ 8,303 | $ 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 | 8,138,675 | 8,889,447 |
Number of treasury share purchased | 2,680,331 | 1,929,559 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
INTEREST INCOME: | |||
Interest and fees on loans | $ 25,141,000 | $ 26,737,000 | $ 25,367,000 |
Interest on mortgage-backed securities | 9,197,000 | 9,561,000 | 4,077,000 |
Interest and dividends on investments | 6,942,000 | 6,782,000 | 5,015,000 |
Interest on interest-bearing deposits | 947,000 | 960,000 | 392,000 |
Total interest income | 42,227,000 | 44,040,000 | 34,851,000 |
INTEREST EXPENSE: | |||
Interest on deposits | 10,902,000 | 13,160,000 | 7,386,000 |
Interest on advances from FHLB - short term | 1,056,000 | 790,000 | 347,000 |
Interest on advances from FHLB - long term | 7,467,000 | 5,339,000 | 2,404,000 |
Total interest expense | 19,425,000 | 19,289,000 | 10,137,000 |
NET INTEREST INCOME | 22,802,000 | 24,751,000 | 24,714,000 |
PROVISION FOR LOAN LOSSES | 3,025,000 | 100,000 | 810,000 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 19,777,000 | 24,651,000 | 23,904,000 |
NON-INTEREST INCOME: | |||
Fees and other service charges | 540,000 | 661,000 | 668,000 |
Gain on sale of mortgage-backed securities available for sale | 5,993,000 | 1,057,000 | (376,000) |
Gain (loss) on equity securities, net | (44,000) | 58,000 | |
Gain on sale of loans | 488,000 | 9,000 | |
Swap (loss) income | (56,000) | 158,000 | 1,122,000 |
Earnings from bank owned life insurance | 656,000 | 645,000 | 639,000 |
Other | 526,000 | 506,000 | 447,000 |
Total non-interest income | 8,103,000 | 3,094,000 | 2,500,000 |
NON-INTEREST EXPENSES: | |||
Salaries and employee benefits | 9,562,000 | 8,857,000 | 8,273,000 |
Data processing | 857,000 | 789,000 | 733,000 |
Professional services | 1,698,000 | 1,460,000 | 1,866,000 |
Office occupancy | 856,000 | 968,000 | 1,079,000 |
Depreciation | 484,000 | 619,000 | 625,000 |
Director compensation | 246,000 | 255,000 | 234,000 |
Federal Deposit Insurance Corporation deposit insurance premiums | 701,000 | 472,000 | 278,000 |
Real estate owned expense | 165,000 | 81,000 | 176,000 |
Advertising | 186,000 | 279,000 | 246,000 |
Core deposit amortization | 108,000 | 123,000 | 138,000 |
Other | 1,862,000 | 2,162,000 | 1,991,000 |
Total non-interest expenses | 16,725,000 | 16,065,000 | 15,639,000 |
INCOME BEFORE INCOME TAXES | 11,155,000 | 11,680,000 | 10,765,000 |
INCOME TAXES: | |||
Current | 2,045,000 | 2,338,000 | 2,429,000 |
Deferred (benefit) expense | (445,000) | (188,000) | 1,272,000 |
Total income tax provision | 1,600,000 | 2,150,000 | 3,701,000 |
NET INCOME | $ 9,555,000 | $ 9,530,000 | $ 7,064,000 |
BASIC EARNINGS PER SHARE | $ 1.12 | $ 1.09 | $ 0.80 |
DILUTED EARNINGS PER SHARE | 1.12 | 1.07 | 0.78 |
DIVIDENDS PER SHARE | $ 0.71 | $ 0.65 | $ 0.70 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income | $ 9,555 | $ 9,530 | $ 7,064 |
Unrealized holding gain (loss) on available-for-sale securities | 9,141 | 21,871 | (9,077) |
Tax effect | (1,920) | (4,593) | 1,906 |
Reclassification adjustment for net securities (gains) losses realized in net income | (5,993) | (1,057) | 310 |
Tax effect | 1,259 | 222 | (65) |
Unrealized holding (loss) gain on interest rate swaps | (8,382) | (8,952) | 599 |
Tax effect | 170 | ||
Reclassification adjustment for gain on interest rate swaps | (808) | ||
Tax effect | 1,760 | 1,880 | (126) |
Total other comprehensive income (loss) | (4,135) | 9,371 | (7,091) |
Comprehensive income | $ 5,420 | $ 18,901 | $ (27) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings | Other Comprehensive Income (Loss) | Total |
BALANCE at Sep. 30, 2017 | $ 108 | $ 118,751 | $ (26,707) | $ 44,787 | $ (760) | $ 136,179 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 7,064 | 7,064 | ||||
Other comprehensive income (loss) | (7,091) | (7,091) | ||||
Dividends paid | (6,300) | (6,300) | ||||
Purchase of treasury stock | (4,037) | (4,037) | ||||
Treasury stock used for employee benefit plans | (1,511) | 3,000 | 1,489 | |||
Stock option expense | 540 | 540 | ||||
Restricted shares award expense | 565 | 565 | ||||
Reclassification due to change in federal income tax rate | 303 | (303) | ||||
BALANCE at Sep. 30, 2018 | 108 | 118,345 | (27,744) | 45,854 | (8,154) | 128,409 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 9,530 | 9,530 | ||||
Other comprehensive income (loss) | 9,371 | 9,371 | ||||
Dividends paid | (5,784) | (5,784) | ||||
Purchase of treasury stock | (3,648) | (3,648) | ||||
Treasury stock used for employee benefit plans | (1,154) | 1,694 | 540 | |||
Stock option expense | 573 | 573 | ||||
Restricted shares award expense | 620 | 620 | ||||
Reclassification for adoption of ASU 2016-01 | (25) | 25 | ||||
BALANCE at Sep. 30, 2019 | 108 | 118,384 | (29,698) | 49,625 | 1,192 | 139,611 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 9,555 | 9,555 | ||||
Other comprehensive income (loss) | (4,135) | (4,135) | ||||
Dividends paid | (6,216) | (6,216) | ||||
Purchase of treasury stock | (10,534) | (10,534) | ||||
Treasury stock used for employee benefit plans | (811) | 1,025 | 214 | |||
Stock option expense | 353 | 353 | ||||
Restricted shares award expense | 344 | 344 | ||||
Reclassification for adoption of ASC Topic 842 | 75 | 75 | ||||
BALANCE at Sep. 30, 2020 | $ 108 | $ 118,270 | $ (39,207) | $ 52,889 | $ (2,943) | $ 129,117 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Dividends paid (in dollars per share) | $ 0.71 | $ 0.65 | $ 0.70 |
Treasury stock used for employee benefit plan | (78,616) | (109,634) | (202,751) |
Common Stock | |||
Purchase of treasury stock | (829,388) | (207,543) | (223,520) |
CONSOLIDATED STATEMENTS OF CH_3
CONSOLIDATED STATEMENTS OF CHANGES OF CASH FLOW - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES: | |||
Net income | $ 9,555,000 | $ 9,530,000 | $ 7,064,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 484,000 | 619,000 | 625,000 |
Net amortization/accretion of premiums/discounts and other amortization | (1,934,000) | (2,407,000) | (495,000) |
Earnings on BOLI | (656,000) | (645,000) | (639,000) |
Provision for loan losses | 3,025,000 | 100,000 | 810,000 |
Accretion of deferred loan fees and costs | (76,000) | (136,000) | (72,000) |
(Gain) loss on sale of real estate owned | (99,000) | 46,000 | (45,000) |
Gain on sale of investment and mortgage-backed securities | (5,993,000) | (1,057,000) | 376,000 |
Write-down of real estate owned | 125,000 | 75,000 | 175,000 |
Gain on sale of loans | (488,000) | (9,000) | |
Proceeds from the sale of loans | 31,774,000 | 612,000 | |
Originations of loans held for sale | (12,192,000) | (603,000) | |
Share-based compensation expense | 697,000 | 1,193,000 | 1,105,000 |
Holding losses (gains) on equity securities | 45,000 | (58,000) | |
Holding losses (gains) on equity securities | 44,000 | (58,000) | |
Deferred income tax benefit | (445,000) | (188,000) | 1,272,000 |
Changes in assets and liabilities which used cash: | |||
Accrued interest receivable | (150,000) | (724,000) | (1,000,000) |
Accrued interest payable | (954,000) | 1,096,000 | 1,299,000 |
Other, net | (430,000) | 543,000 | (172,000) |
Net cash provided by operating activities | 22,288,000 | 7,987,000 | 10,303,000 |
INVESTING ACTIVITIES: | |||
Purchase of investment and mortgage-backed securities available for sale | (175,710,000) | (280,303,000) | (158,854,000) |
Purchase of investment and mortgage-backed securities held to maturity | (2,500,000) | (11,849,000) | (4,480,000) |
Loans originated or acquired | (138,272,000) | (100,371,000) | (123,608,000) |
Principal collected on loans | 113,170,000 | 118,404,000 | 90,589,000 |
Principal payments received on investment and mortgage-backed securities: | |||
Held-to-maturity | 48,216,000 | 3,002,000 | 1,254,000 |
Available-for-sale | 138,074,000 | 24,091,000 | 15,015,000 |
Redemption of certificates of deposit | 249,000 | (747,000) | |
Proceeds from sale of investment and mortgage-backed securities | 142,055,000 | 75,639,000 | 11,052,000 |
Proceeds from redemption of FHLB stock | 10,905,000 | 5,145,000 | 5,197,000 |
Purchase of FHLB stock | (7,031,000) | (13,966,000) | (6,780,000) |
Purchase of BOLI | (2,500,000) | ||
Proceeds from sale of other real estate owned | 505,000 | 557,000 | 407,000 |
Purchases of equipment | (407,000) | (386,000) | (260,000) |
Net cash provided by (used in) investing activities | 129,254,000 | (183,284,000) | (170,468,000) |
FINANCING ACTIVITIES: | |||
Net increase (decrease) in demand deposits, NOW accounts, and savings accounts | 269,078,000 | 11,816,000 | (21,241,000) |
Net (decrease) increase in certificates of deposit | (243,573,000) | (50,501,000) | 169,821,000 |
Net (decrease) increase in FHLB short-term advances | (65,000,000) | 80,000,000 | (10,000,000) |
Proceeds from FHLB advances - long term | 175,997,000 | 93,300,000 | |
Repayment of FHLB advances - long term | (26,650,000) | (33,575,000) | (42,475,000) |
Increase in advances from borrowers for taxes and insurance | 466,000 | 249,000 | (124,000) |
Cash dividends paid | (6,216,000) | (5,784,000) | (6,300,000) |
Purchase of treasury stock | (10,534,000) | (3,108,000) | (2,548,000) |
Net cash (used in) provided by financing activities | (82,429,000) | 175,094,000 | 180,433,000 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 69,113,000 | (203,000) | 20,268,000 |
CASH AND CASH EQUIVALENTS-Beginning of period | 47,968,000 | 48,171,000 | 27,903,000 |
CASH AND CASH EQUIVALENTS-End of period | 117,081,000 | 47,968,000 | 48,171,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Interest on deposits and advances from Federal Home Loan Bank | 20,379,000 | 18,531,000 | 9,601,000 |
Income taxes paid | 3,070,000 | $ 2,409,000 | 2,700,000 |
SUPPLEMENTAL DISCLOSURES OF NONCASH ITEMS | |||
Loans transferred to other real estate owned | 183,000 | $ 1,373,000 | |
Lease adoption: | |||
Right of use lease asset | 1,415,000 | ||
Lease liability | $ 1,536,000 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2020 | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION Prudential Bancorp, Inc. (the “Company”) is a Pennsylvania corporation that was incorporated in June 2013 to be the successor corporation of Prudential Bancorp, Inc. of Pennsylvania (“Old Prudential Bancorp”), the former stock holding company for Prudential Bank (the “Bank”), a Pennsylvania-chartered, FDIC-insured savings bank with ten full service branches in the Philadelphia area. The Bank’s primary federal banking regulator is the Federal Deposit Insurance Corporation. The Bank is principally in the business of attracting deposits from its community through its branch offices and investing those deposits, together with funds from borrowings, primarily in loans and investments. The Bank’s sole subsidiary as of September 30, 2020 was PSB Delaware, Inc. (“PSB”), a Delaware-chartered corporation established to hold certain investments. As of September 30, 2020, PSB had total assets of $266.7 million primarily consisting of investment and mortgage-backed securities. Most of the Company’s business activities are conducted within a few hours’ drive from Philadelphia and include eastern Pennsylvania, Delaware, New Jersey and southern New York. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation – . Use of Estimates in the Preparation of Financial Statements — Cash and Cash Equivalents — Certificates of Deposit— one Investment Securities and Mortgage-Backed Securities — Held to Maturity Available for Sale of investment and mortgage-backed securities are reported in earnings as of the trade date and determined using the adjusted cost of the specific security sold. Premiums are amortized and discounts are accreted using the interest method over the estimated remaining term of the underlying security. Equity Securities Other-than-temporary impairment Loans Receivable — Loan Origination and Commitment Fees — Interest on Loans — Allowance for Loan Losses— Impaired loans are loans for which it is not probable to collect all amounts due according to the contractual terms of the loan agreements. Management individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for impaired loans is determined by the difference between the present value of the expected cash flows related to the loans, using the original interest rate, and their recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. When foreclosure is probable, impairment is measured based on the fair value of the collateral. Mortgage loans and consumer loans are comprised of large groups of smaller balance homogeneous loans which are evaluated for impairment collectively. Loans that experience insignificant payment delays, which are defined as delays of less than 90 days, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all of the circumstances surrounding the loan and the borrower including the length of the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. Real Estate Owned — Restricted Bank Stock – The Bank is a member of the FHLB of Pittsburgh and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted; (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance; (c) the impact of legislative and regulatory changes on the customer base of the FHLB; and (d) the liquidity position of the FHLB. The FHLB of Pittsburgh continues to report net income, continues to declare quarterly cash dividends and had its Aaa bond rating affirmed by Moody’s and its AA+ rating affirmed by Standard and Poor’s during 2020 and remained unchanged as of September 30, 2020. With consideration given to these factors, management concluded that the stock was not impaired at September 30, 2020 or 2019. In 2018, the Bank purchased $90,000 of stock in ACBB to support a $12.5 million line of credit. The line has not been drawn on. Office Properties and Equipment — Cash Surrender Value of Life Insurance— Dividend Payable Goodwill recognized as an asset and is to be reviewed for impairment annually as of March 31 and between annual tests when events and circumstances indicate that impairment may have occurred. The Company’s goodwill and intangible assets are related to the acquisition of Polonia Bancorp on January 1, 2017. Share-Based Compensation Treasury Stock – Comprehensive Income Income Taxes— In evaluating the Company’s ability to recover deferred tax assets, management considers all available positive and negative evidence, including past operating results and forecast of future taxable income. In determining future taxable income, management makes assumptions for the amount of taxable income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require management to make judgments about future taxable income and are consistent with the plans and estimates the Company uses to manage the business. Any reduction in estimated future taxable income may require management to record an additional valuation allowance against the deferred tax assets. An increase in the valuation allowance would result in additional income tax expense in the period and could have a significant impact on our future earnings. Transfers and Servicing of Financial Assets and Extinguishments of Liabilities — Interest Rate Swap Agreement - to hedge various exposures or to modify interest rate characteristics of assets and liabilities. Interest rate swaps are contracts in which a series of interest rate flow is exchanged over a prescribed period. The notional amount on which the interest payments are based is not exchanged. These swap agreements are derivative instruments and generally convert a portion of the Company’s variable-rate debt to a fixed-rate (cash flow hedge) and convert a portion of its fixed-rate loans to a variable rate (fair value hedge). For the fair value hedges, changes in the fair value of the interest rate swap are expected to be “perfectly effective” in offsetting changes in the fair value of the hedged item, thus no portion of the change in market value is anticipated to be recognized in earnings. For cash flow hedges, the net settlement (upon close-out or termination) that offsets changes in the value of the hedged debt is deferred and amortized into net interest income over the life of the hedged debt. For fair value hedges, the net settlement (upon close-out or termination) that offsets changes in the value of the loans adjusts the basis of the loans and is deferred and amortized to loan interest income over the life of the loans. The portion, if any, of the net settlement amount that did not offset changes in the value of the hedged asset or liability is recognized immediately in non-interest income. Interest rate derivative financial instruments receive hedge accounting treatment only if they are designated as a hedge and are expected to be, and are, effective in substantially reducing interest rate risk arising from the assets and liabilities identified as exposing the Company to risk. Those derivative financial instruments that do not meet specified hedging criteria would be recorded at fair value, with changes in fair value recorded in income. If periodic assessment indicates derivatives no longer provide an effective hedge, the derivative contracts would be closed out and settled, or classified as a trading activity. Loans Acquired For purchased loans acquired that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value. Loans are aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. Subsequent to the purchase date, the methods utilized to estimate the required allowance for credit losses for these loans is similar to originated loans; however, the Company records a provision for loan losses only when the required allowance exceeds any remaining credit discounts. The remaining differences between the purchase price and the unpaid principal balance at the date of acquisition are recorded in interest income over the life of the loans. Reclassification of Comparative Amounts - Recently Adopted Accounting Pronouncements Effective October 1, 2019, the Company adopted ASU 2016-02 – Leases 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 the 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, as of October 1, 2019, 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 8. 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 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) , which deferred the effective date for ASC 350, Intangibles – Goodwill and Other , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements 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. 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 2019-08, Compensation ‒ Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606), which requires entities to measure and classify share-based 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 share-based 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) Codification Improvements to Topic 326, Financial Instruments – Credit Losses Income Taxes (Topic 740) 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. In January 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020, to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met, and can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through December 31, 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 | 12 Months Ended |
Sep. 30, 2020 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 3. EARNINGS PER SHARE Basic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted earnings per share is computed based on the weighted average number of common shares outstanding and common share equivalents (“CSEs”) that would arise from the exercise of dilutive shares. The calculated basic and diluted earnings per share are as follows: Year Ended September 30, 2020 2019 2018 (Dollars in Thousands Except Per Share Data) Basic Diluted Basic Diluted Basic Diluted Net income $ 9,555 $ 9,555 $ 9,530 $ 9,530 $ 7,064 $ 7,064 Weighted average common shares outstanding 8,538,006 8,538,006 8,777,794 8,777,794 8,855,938 8,855,938 Effect of CSEs — 24,470 — 158,083 — 204,175 Adjusted weighted average common shares used in earnings per share computation 8,538,006 8,562,476 8,777,794 8,935,877 8,855,938 9,060,113 Earnings per share $ 1.12 $ 1.12 $ 1.09 $ 1.07 $ 0.80 $ 0.78 As of September 30, 2020, 2019, and 2018, there were 282,728, 550,833 and 666,526 shares, respectively, of common stock subject to options with an exercise price less than the then current market value, as of such dates and which were included in the computation of diluted earnings per share. At September 30, 2020, 2019 and 2018, there were 288,530, 242,201 and 202,500 shares, respectively, that had exercise prices greater than the current market value and are considered anti-dilutive. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Sep. 30, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 4. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in accumulated other comprehensive (loss) income by component net of tax: Year Ended September 30, 2020 2020 2020 2019 2019 2019 (Dollars in Thousands) Total Total accumulated accumulated Unrealized gain Unrealized gain (loss) other Unrealized gain Unrealized gain (loss) other (loss) on AFS on interest rate swaps comprehensive (loss) on AFS on interest rate comprehensive securities (a) (a) income (loss) securities (a) swaps (a) loss Beginning Balance, October 1 $ 8,098 $ (6,906) $ 1,192 $ (8,320) $ 166 $ (8,154) Other comprehensive (loss) income before reclassification 7,221 (6,622) 599 17,278 (7,072) 10,206 Amount reclassified from accumulated other comprehensive income (4,734) — (4,734) (835) — (835) Reclassification for net gains recorded in net income — — — (25) — (25) Ending Balance, September 30 $ 10,585 $ (13,528) $ (2,943) $ 8,098 $ (6,906) $ 1,192 Year Ended September 30, 2018 2018 2018 (Dollars in Thousands) Total accumulated Unrealized gain Unrealized gain (loss) other (loss) on AFS on interest rate swaps comprehensive securities (a) (a) gain (loss) Beginning Balance $ (1,091) $ 331 $ (760) Other comprehensive (loss) income before reclassification (7,171) 473 (6,698) Amount reclassified from accumulated other comprehensive income 245 (638) (393) Reclassification for net gains recorded in net income (303) — (303) Ending Balance $ (8,320) $ 166 $ (8,154) (a) All amounts are net of tax. Amounts in parentheses indicate debits. The following table presents significant amounts reclassified out of each component of accumulated other comprehensive (loss) income for the years ended September 30, 2020, 2019 and 2018. Year Ended September 30, 2020 2020 2020 2019 2019 2019 (Dollars in Thousands) Securities Swaps Total Securities Swaps Total Unrealized gain (losses) $ 5,993 (1) $ — (2) $ 5,993 $ 1,057 (1) $ — (2) $ 1,057 Income taxes (1,259) (3) — (3) (1,259) (222) (3) — (3) (222) $ 4,734 $ — $ 4,734 $ 835 $ — $ 835 Year Ended September 30, 2018 2018 2018 (Dollars in Thousands) Securities Swaps Total Unrealized gain (losses) $ (310) (1) $ 808 (2) $ 498 Income taxes 65 (3) (170) (3) (105) $ (245) $ 638 $ 393 (1) Recorded as a gain (loss) on the sale of mortgage-backed securities. (2) Recorded as swap (loss) income. (3) Recorded as income tax expense. |
INVESTMENT AND MORTGAGE-BACKED
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 12 Months Ended |
Sep. 30, 2020 | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 5. INVESTMENT AND MORTGAGE-BACKED SECURITIES The amortized cost and fair value of securities, with gross unrealized gains and losses, are as follows: September 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 22,241 $ 153 $ — $ 22,394 State and political subdivisions 79,099 1,940 (1,418) 79,621 Mortgage-backed securities - U.S. government agencies 226,863 9,774 (71) 236,566 Corporate debt securities 78,764 3,564 (545) 81,783 Total debt securities available for sale $ 406,967 $ 15,431 $ (2,034) $ 420,364 Securities Held to Maturity: U.S. government and agency obligations $ 1,000 $ 236 $ — $ 1,236 State and political subdivisions 18,076 925 — 19,001 Mortgage-backed securities - U.S. government agencies 3,784 309 — 4,093 Total securities held to maturity $ 22,860 $ 1,470 $ — $ 24,330 The Company recognized a holding loss on equity securities of $44,000 for the year ended September 30, 2020. A Holding gain of $58,000 was recognized for the year ended September 30, 2019. 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 As of September 30, 2020, the Bank maintained securities with a fair value of $197.5 million in a safekeeping account at the FHLB of Pittsburgh used for collateral and convenience. The Bank is only required to hold $93.0 million as specific collateral for its borrowings; therefore the $104.5 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 available for sale investment securities, aggregated by investment category and the length of time that individual securities had been in a continuous loss position at September 30, 2020: 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: State and political subdivisions $ (126) $ 10,735 $ (1,292) $ 24,510 $ (1,418) $ 35,245 Mortgage-backed securities -U.S. government agencies (66) 10,025 (5) 584 (71) 10,609 Corporate debt securities (545) 16,472 — — (545) 16,472 Total securities available for sale $ (737) $ 37,232 $ (1,297) $ 25,094 $ (2,034) $ 62,326 Management evaluates securities for other-than-temporary impairment (“OTTI”) at least once per quarter, and more frequently when economic or market conditions warrant such evaluation. The evaluation is based upon factors such as the creditworthiness of the issuers/guarantors, the underlying collateral, if applicable, and the continuing performance of the securities. Management also evaluates other facts and circumstances that may be indicative of an OTTI condition. This includes, but is not limited to, an evaluation of the type of security, the length of time and extent to which the fair value of the security has been less than cost, and the near-term prospects of the issuer. The Company assesses the credit loss by considering whether (1) the Company has the intent to sell the security, (2) it is more likely than not that it will be required to sell the security before recovery, or (3) it does not expect to recover the entire amortized cost basis of the security. The Company bifurcates the OTTI impact on impaired securities where impairment in value was deemed to be other than temporary between the component representing credit loss and the component representing loss related to other factors. The portion of the fair value decline attributable to credit loss must be recognized through a charge to earnings. The credit component is determined by comparing the present value of the cash flows expected to be collected, discounted at the rate in effect before recognizing any OTTI with the amortized cost basis of the debt security. The Company uses the cash flow expected to be realized from the security, which includes assumptions about interest rates, timing and severity of defaults, estimates of potential recoveries, the cash flow distribution from the bond indenture and other factors, then applies a discount rate equal to the effective yield of the security. The difference between the present value of the expected cash flows and the amortized book value is considered a credit loss. The fair value of the security is determined using the same expected cash flows; the discount rate is a rate the Company determines from the open market and other sources as appropriate for the security. The difference between the fair value and the security’s remaining amortized cost is recognized in other comprehensive income (loss). For the years ended September 30, 2020, 2019 and 2018, the Company determined that no OTTI had occurred within the investment and mortgage-backed securities portfolios. U.S. Government and agency obligations– Mortgage-backed securities – U.S. government agencies — Corporate debt securities — State and political subdivision debt securities — The following table shows the gross unrealized losses and related fair values of the investment securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at September 30, 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: US 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 debt securities (13) 1,989 (25) 3,014 (38) 5,003 Total securities available for sale $ (106) $ 59,933 $ (1,183) $ 67,720 $ (1,289) $ 127,653 Securities Held to Maturity: U.S. government and agency obligations $ (188) $ 14,811 $ — $ — $ (188) $ 14,811 Mortgage-backed securities - US government agencies (4) 794 — — (4) 794 Total securities held to maturity $ (192) $ 15,605 $ — $ — $ (192) $ 15,605 Total $ (298) $ 75,538 $ (1,183) $ 67,720 $ (1,481) $ 143,258 The amortized cost and fair value of debt securities by contractual maturity are shown below. Expected maturities as of September 30, 2020 will differ from contractual maturities because of call provisions in the securities. Mortgage-backed securities were not included as the contractual maturity is generally irrelevant due to the borrowers’ right to prepay without pre-payment penalty which results in significant prepayments. September 30, 2020 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in Thousands) Due after one through five years $ 5,739 $ 6,213 $ 28,495 $ 29,529 Due after five through ten years 8,313 8,727 51,454 53,546 Due after ten years 5,024 5,297 100,155 100,723 Total $ 19,076 $ 20,237 $ 180,104 $ 183,798 During the fiscal years ended September 30, 2020, 2019 and 2018, the Company recorded realized gross gains of $6.1 million, $1.3 million and $-0-, respectively. The Company recorded gross losses of $68,000, $280,000 and $376,000, respectively, for the same periods. Gross proceeds from the sale of investment and mortgage-backed securities of $142.1 million, $75.6 million and $11.1 million, respectively. |
LOANS RECEIVABLE
LOANS RECEIVABLE | 12 Months Ended |
Sep. 30, 2020 | |
LOANS RECEIVABLE | |
LOANS RECEIVABLE | 6. LOANS RECEIVABLE Loans receivable consist of the following: September 30, September 30, 2020 2019 (Dollars in Thousands) One-to-four family residential $ 233,872 $ 268,780 Multi-family residential 31,100 30,582 Commercial real estate 139,943 128,521 Construction and land development 260,648 253,368 Loans to financial institutions 6,000 6,000 Commercial business 12,916 19,630 Leases 176 518 Consumer 604 834 Total loans 685,259 708,233 Undisbursed portion of loans-in-process (86,862) (114,528) Deferred loan fees (1,794) (2,856) Allowance for loan losses (8,303) (5,393) Net loans $ 588,300 $ 585,456 The Company originates loans to customers located primarily in its market area of eastern Pennsylvania, Delaware, New Jersey and southern New York. The ultimate repayment of these loans at September 30, 2020 is dependent, to a certain degree, on the state of the economy and real estate market in these areas. The following table summarizes the loans individually and collectively evaluated for impairment by loan segment at September 30, 2020: One- to Loans to four- Multi-family Commercial Construction and Commercial financial family residential residential real estate land development business institutions Leases Consumer Unallocated Total (Dollars in Thousands) Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,877 460 1,989 2,888 194 89 3 6 797 8,303 Total ending allowance balance $ 1,877 $ 460 $ 1,989 $ 2,888 $ 194 $ 89 $ 3 $ 6 $ 797 $ 8,303 Loans: Individually evaluated for impairment $ 3,095 $ — $ 1,417 $ 8,525 $ — $ — $ — $ — $ 13,037 Collectively evaluated for impairment 230,777 31,100 138,526 252,123 12,916 6,000 176 604 672,222 Total loans $ 233,872 $ 31,100 $ 139,943 $ 260,648 $ 12,916 $ 6,000 $ 176 $ 604 $ 685,259 The following table summarizes the loans individually and collectively evaluated for impairment by loan segment at September 30, 2019: One- to Loans to four- Multi-family Commercial Construction and Commercial financial family residential residential real estate land 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 risk and performance. Management evaluates all loans classified as substandard or lower and loans delinquent 90 or more days for potential impairment. Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Once the determination is made that a loan is impaired, the determination of whether a specific allocation of the allowance, or charge off, is necessary is generally measured by comparing the recorded investment in the loan to the fair value of the loan using one of the following three methods: (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. Management primarily utilizes the fair value of collateral method as a practically expedient alternative. The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2020: 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 $ — $ — $ 3,095 $ 3,095 $ 3,482 Commercial real estate — — 1,417 1,417 1,600 Construction and land development — — 8,525 8,525 10,906 Total $ — $ — $ 13,037 $ 13,037 $ 15,988 The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2019: Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ — $ — $ 4,827 $ 4,827 $ 5,179 Commercial real estate — — 1,965 1,965 2,125 Construction and land development — — 8,750 8,750 11,131 Total $ — $ — $ 15,542 $ 15,542 $ 18,435 The following tables present the average investment in impaired loans and related interest income recognized for the periods indicated: Year Ended September 30, 2020 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 3,825 $ 13 $ 26 Multi-family residential 56 — — Commercial real estate 1,549 — 1 Construction and land development 8,685 — — Commercial business 2 — — Consumer 24 — — Total impaired loans $ 14,140 $ 13 $ 27 Year Ended September 30, 2019 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 4,685 $ 77 $ 22 Multi-family residential 145 10 — Commercial real estate 2,139 36 4 Construction and land development 8,751 — — Total impaired loans $ 15,720 $ 123 $ 26 Year Ended September 30, 2018 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 5,741 $ 24 $ 59 Multi-family residential 306 21 — Commercial real estate 2,557 40 7 Construction and land development 8,743 — — Total $ 17,347 $ 85 $ 66 Federal banking regulations and our policies require that the Bank utilize an internal asset classification system as a means of reporting problem and potential problem assets. The Bank has incorporated an internal asset classification system, consistent with Federal banking regulations, as a part of the credit monitoring system. Management currently classifies problem and potential problem assets as “special mention,” “substandard,” “doubtful” or “loss” assets. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. Assets which do not currently expose the insured institution to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses are required to be designated “special mention.” The following tables present the classes of the loan portfolio in which a formal risk weighting system is utilized summarized by the aggregate “Pass” and the criticized category of “special mention”, and the classified categories of “substandard” and “doubtful” within the Bank’s risk rating system. The Bank had no loans classified as “doubtful” or “loss” at either of the dates presented. September 30, 2020 Special Pass Mention Substandard Doubtful Total (Dollars in Thousands) One-to-four residential $ 229,361 $ 1,416 $ 3,095 $ — $ 233,872 Multi-family residential 31,100 — — — 31,100 Commercial real estate 128,527 9,999 1,417 — 139,943 Construction and land development 252,123 — 8,525 — 260,648 Loans to financial institutions 6,000 — — — 6,000 Commercial business 12,916 — — — 12,916 Total $ 660,027 $ 11,415 $ 13,037 $ — $ 684,479 September 30, 2019 Special Pass Mention Substandard Doubtful Total (Dollars in Thousands) One-to-four residential $ 262,164 $ 1,789 $ 4,827 $ — $ 268,780 Multi-family residential 30,582 — — — 30,582 Commercial real estate 122,838 3,718 1,965 — 128,521 Construction and land development 244,618 — 8,750 — 253,368 Loans to financial institutions 6,000 — — — 6,000 Commercial business 19,630 — — — 19,630 Total $ 685,832 $ 5,507 $ 15,542 $ — $ 706,881 The following tables present loans in which a formal risk rating system is not utilized, but loans are segregated between performing and non-performing based primarily on delinquency status: September 30, 2020 Non- Performing Performing Total (Dollars in Thousands) Leases $ 176 $ — $ 176 Consumer 604 — 604 Total $ 780 $ — $ 780 September 30, 2019 Non- Performing Performing Total (Dollars in Thousands) Leases $ 518 $ — $ 518 Consumer 834 — 834 Total $ 1,352 $ — $ 1,352 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans: September 30, 2020 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 $ 231,196 $ 523 $ 2,153 $ 2,676 $ 233,872 $ 3,095 $ — Multi-family residential 31,100 — — — 31,100 — — Commercial real estate 136,225 2,301 1,417 3,718 139,943 1,417 — Construction and land development 252,123 — 8,525 8,525 260,648 8,525 — Commercial business 12,916 — — — 12,916 — — Loans to financial institutions 6,000 — — — 6,000 — — Leases 176 — — — 176 — Consumer 604 — — — 604 — — Total Loans $ 670,340 $ 2,824 $ 12,095 $ 14,919 $ 685,259 $ 13,037 $ — 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 $ — Interest income on non-accrual loans would have increased by approximately $748,000, $786,000, and $744,000, during fiscal years ended September 30, 2020, 2019, and 2018, respectively, if these loans would have performed in accordance with their original terms. The allowance for loan losses is established through a provision for loan losses charged to expense. Management maintains the allowance at a level believed to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate at each reporting date. Management reviews the allowance for loan losses no less than quarterly in order to identify those inherent losses and to assess the overall collection probability for the loan portfolio in view of these inherent losses. For each primary type of loan, a loss factor is established reflecting an estimate of the known and inherent losses in such loan type using both a quantitative analysis as well as consideration of qualitative factors. The evaluation process includes, among other things, an analysis of delinquency trends, nonperforming loan trends, the level of charge-offs and recoveries, prior loss experience, total loans outstanding, the volume of loan originations, the type, size and geographic concentration of our loans, the value of collateral securing the loans, the borrower’s ability to repay and repayment performance, the number of loans requiring heightened management oversight, local economic conditions and industry experience. Commercial real estate loans entail significant additional credit risks compared to one-to-four family residential mortgage loans, as they generally involve large loan balances concentrated with single borrowers or groups of related borrowers. In addition, the payment experience on loans secured by income-producing properties typically depends on the successful operation of the related real estate project and/or business operation of the borrower who is also the primary occupant, and thus may be subject to a greater extent to the effects of adverse conditions in the real estate market and in the economy in general. Commercial business loans typically involve a higher risk of default than residential loans of like duration since their repayment is generally dependent on the successful operation of the borrower’s business and the sufficiency of collateral, if any. Land acquisition, development and construction lending exposes us to greater credit risk than permanent mortgage financing. The repayment of land acquisition, development and construction loans depends upon the sale of the property to third parties or the availability of permanent financing upon completion of all improvements. These events may adversely affect the borrower and the value of the collateral property. The following tables summarize the primary segments of the allowance for loan losses, segmented into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2020, 2019 and 2018. Activity in the allowance is presented for the years ended September 30, 2020, 2019 and 2018: Year Ended September 30, 2020 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2019 $ 1,002 $ 315 $ 1,257 $ 2,034 $ 206 $ 63 $ 5 $ 13 $ 498 $ 5,393 Charge-offs (3) — — — (15) — — (126) — (144) Recoveries 14 — — — — — 9 6 — 29 Provision 864 145 732 854 3 26 (11) 113 299 3,025 ALLL balance at September 30, 2020 $ 1,877 $ 460 $ 1,989 $ 2,888 $ 194 $ 89 $ 3 $ 6 $ 797 $ 8,303 Year Ended September 30, 2019 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2018 $ 1,325 $ 347 $ 1,154 $ 1,554 $ 187 $ 64 $ 18 $ 17 $ 501 $ 5,167 Charge-offs (7) — — — — — (31) — — (38) Recoveries 164 — — — — — — — — 164 Provision (480) (32) 103 480 19 (1) 18 (4) (3) 100 ALLL balance at September 30, 2019 $ 1,002 $ 315 $ 1,257 $ 2,034 $ 206 $ 63 $ 5 $ 13 $ 498 $ 5,393 September 30, 2018 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2017 $ 1,241 $ 205 $ 1,201 $ 1,358 $ 4 $ — $ 23 $ 24 $ 410 $ 4,466 Charge-offs (114) — — (12) — — — (11) — (137) Recoveries 28 — — — — — — — — 28 Provision 170 142 (47) 208 183 64 (5) 4 91 810 ALLL balance at September 30, 2018 $ 1,325 $ 347 $ 1,154 $ 1,554 $ 187 $ 64 $ 18 $ 17 $ 501 $ 5,167 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,325 347 1,154 1,554 187 64 18 17 501 5,167 Loans acquired in the merger with Polonia Bancorp were recorded at fair value with no carryover of the related allowance for loan losses. Management measured loan fair values based on loan file reviews, appraised collateral values, expected cash flows, and historical loss factors of Polonia Bank. The fair value of the loans acquired was $160.8 million net of a $4.6 million discount of which $2.5 million of the discount remained as of September 30, 2020. The discount is accreted to interest income over the remaining contractual life of the loans acquired. All loans that had a loan-to-value ratio of greater than 80% were determined to have sufficient collateral to recover the carrying amount. Thus, none of the loans acquired were considered to be purchased credit-impaired loans and any possible loss would be considered immaterial. Management established a provision for loan losses of $3.0 million, $100,000 and $810,000 for the years ended September 30, 2020, 2019 and 2018, respectively. The provision for loan losses was deemed necessary for fiscal 2020 primarily due to the continued uncertainty associated with the economic effects of the COVID-19 pandemic, especially in light of the increasing level of cases of COVID-19 in recent months, and the potential credit deterioration caused thereby. Minimal delinquencies have occurred as of September 30, 2020 due to the effects of the COVID-19 pandemic. There were no loan deferments outstanding as of September 30, 2020 and all existing deferrals had ended by September 30, 2020. The Company believes that the allowance for loan losses at September 30, 2020 was sufficient to cover all inherent and known losses associated with the loan portfolio at such date. At September 30, 2020, the Company’s non-performing assets totaled $13.0 million or 1.1% of total assets as compared to $14.3 million or 1.1% of total assets at September 30, 2019. Non-performing assets at September 30, 2020 included five construction loans aggregating $8.5 million, 28 one-to-four family residential loans aggregating $3.1 million and four commercial real estate loans aggregating $1.4 million. There was no real estate acquired through foreclosure or deed-in-lieu as of September 30, 2020. At September 30, 2020, the Company had four loans totaling $5.0 million that were classified as troubled debt restructurings (“TDRs”). One TDR is on non-accrual and consists of a $415,000 loan secured by a single-family residential property and is performing in accordance with the restructured terms. The three remaining TDRs totaling $4.6 million are also classified as non-accrual and are part of a lending relationship totaling $10.4 million (after taking into account the previously disclosed $1.9 million write-down recognized during the quarter ending March 31, 2017 related to this borrowing relationship). . There were no TDRs approved in 2020, 2019 or 2018. All of the existing TDRs involved changes in the interest rates on the loans; no debt was forgiven. At September 30, 2020, out of the four then-existing TDR loans, all were classified as non-performing. At September 30, 2020, the Company had fourteen one-to-four family residential loans with a carrying amount of $1.0 million that are secured by residential real estate property for which foreclosure proceedings are in process according to local jurisdictions. |
OFFICE PROPERTIES AND EQUIPMENT
OFFICE PROPERTIES AND EQUIPMENT | 12 Months Ended |
Sep. 30, 2020 | |
OFFICE PROPERTIES AND EQUIPMENT | |
OFFICE PROPERTIES AND EQUIPMENT | 7. Office properties and equipment are summarized by major classifications as follows: September 30, 2020 2019 (Dollars in Thousands) Land $ 1,437 $ 1,437 Buildings and improvements 7,449 7,449 Furniture and equipment 4,046 3,639 Total 12,932 12,525 Accumulated depreciation (5,803) (5,319) Total office properties and equipment, net of accumulated depreciation $ 7,129 $ 7,206 For the years ended September 30, 2020, 2019 and 2018, depreciation expense amounted to $484,000, $619,000 and $625,000, respectively. . |
DEPOSITS
DEPOSITS | 12 Months Ended |
Sep. 30, 2020 | |
DEPOSITS [Abstract] | |
DEPOSITS | 8. DEPOSITS Deposits consist of the following major classifications: September 30, September 30, 2020 2019 Amount Percent Amount Percent (Dollars in Thousands) Non-interest-bearing checking accounts $ 30,002 3.9 % $ 16,949 2.2 % Interest-bearing checking accounts 135,797 17.6 58,647 7.9 Money market deposit accounts 111,105 14.4 75,766 10.2 Passbook, club and statement savings 224,435 29.1 80,899 10.9 Certificates maturing in six months or less 125,165 16.2 294,343 39.5 Certificates maturing in more than six months 144,445 18.8 218,840 29.3 Total $ 770,949 100.0 % $ 745,444 100.0 % The amount of scheduled maturities of certificate accounts was as follows: September 30, 2020 (Dollars in Thousands) One year or less $ 170,554 One through two years 43,341 Two through three years 30,389 Three through four years 18,647 Four through five years 6,679 Total $ 269,610 Certificates of deposit of $250,000 or more at September 30, 2020 and 2019 totaled $76.6 million and $182.8 million, respectively. Included in certificates of deposit are brokered deposits at September 30, 2020 and 2019 totaling $63.4 million and $153.1 million, respectively. Interest expense on deposits was comprised of the following: Year Ended September 30, 2020 2019 2018 (Dollars in Thousands) Checking and money market deposit accounts $ 2,045 $ 899 $ 247 Passbook, club and statement savings accounts 38 124 66 Certificate accounts 8,819 12,137 7,073 Total $ 10,902 $ 13,160 $ 7,386 |
ADVANCES FROM FEDERAL HOME LOAN
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | 12 Months Ended |
Sep. 30, 2020 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | |
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | 9. ADVANCES FROM FEDERAL HOME LOAN BANK – SHORT TERM The years ended September 30, 2020 and 2019 outstanding balances and related information of short-term borrowings from the FHLB of Pittsburgh are summarized follows: At or For the Year Ended September 30, 2020 2019 2018 (Dollars in Thousands) FHLB advances: Average balance outstanding $ 66,735 $ 31,158 $ 18,933 Maximum amount outstanding at any month-end during the period 115,000 90,000 30,200 Balance outstanding at end of period 25,000 90,000 10,000 Average interest rate during the period 1.58 % 2.53 % 1.81 % Weighted average interest rate at end of period 0.39 % 2.32 % 2.31 % As of September 30, 2020, the $25.0 million borrowing consisted of one 90-day FHLB advance associated with an interest rate swap contract. As of September 30, 2019, the $90.0 million borrowing consisted of seven 30-day FHLB advances associated with interest rate swap contracts. The Company maintains borrowing facilities with the FHLB of Pittsburgh, ACBB and the Federal Reserve Bank of Philadelphia and the terms and interest rates are subject to change on the date of execution of borrowings. Available borrowings are based on collateral with the facility. The Company maintains unsecured borrowing facilities with ACBB and PNC for $12.5 million and $10.0 million, respectively. |
ADVANCES FROM FEDERAL HOME LO_2
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | 12 Months Ended |
Sep. 30, 2020 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | 10. ADVANCES FROM FEDERAL HOME LOAN BANK – LONG TERM Pursuant to collateral agreements with the FHLB of Pittsburgh, advances are secured by a blanket collateral pledge of loansheld by the Bank and qualifying fixed-income securities and FHLB stock. The long-term advances outstanding as of September 30, 2020 are as follows: Lomg-term FHLB advances: Maturity range Weighted average Stated interest rate range Description from to interest rate from to 2020 2019 (Dollars in Thousands) Fixed Rate - Amortizing 1 ‑ Oct ‑ 19 30 ‑ Sep ‑ 20 — % — % — % $ — $ 236 Fixed Rate - Amortizing 1 ‑ Oct ‑ 20 30 ‑ Sep ‑ 21 2.77 % 1.94 % 2.83 % 5,179 14,354 Fixed Rate - Amortizing 1 ‑ Oct ‑ 21 30 ‑ Sep ‑ 22 2.84 % 1.99 % 3.05 % 5,523 8,729 Fixed Rate - Amortizing 1 ‑ Oct ‑ 22 30 ‑ Sep ‑ 23 2.89 % 1.94 % 3.11 % 5,265 6,931 Total 2.83 % $ 15,967 $ 30,250 Fixed Rate - Advances 1 ‑ Oct ‑ 19 30 ‑ Sep ‑ 20 — % — % — % $ — $ 12,304 Fixed Rate - Advances 1 ‑ Oct ‑ 20 30 ‑ Sep ‑ 21 2.37 % 1.42 % 2.92 % 17,996 18,017 Fixed Rate - Advances 1 ‑ Oct ‑ 21 30 ‑ Sep ‑ 22 2.31 % 1.94 % 3.23 % 63,293 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 2.55 % $ 244,286 $ 256,654 2.57 % Total $ 260,253 $ 286,904 Advances from the FHLB of Pittsburgh with coupon rates ranging from 1.42% to 3.23% are as follows. Weighted Average Maturity in Fiscal Amount Coupon Rate (Dollars in Thousands) 2021 $ 28,185 2.44 % 2022 67,285 2.32 2023 96,785 2.51 2024 67,998 2.88 $ 260,253 2.57 The Bank maintains a blanket collateral pledge agreement using qualifying loans with the FHLB of Pittsburgh for future borrowing needs. At September 30, 2020, the Bank had the ability to obtain $103.4 million of additional FHLB advances. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2020 | |
INCOME TAXES | |
INCOME TAXES | 11. INCOME TAXES The Company files a consolidated federal income tax return. The Company uses the specific charge-off method for computing reserves for bad debts. Generally this method allows the Company to deduct an annual addition to the reserve for bad debts equal to its net charge-offs. The provision for income taxes for the fiscal years ended September 30, 2020, 2019 and 2018 consists of the following: Current: Federal expense $ 1,952 $ 2,133 $ 2,429 State expense 93 205 — Total current taxes 2,045 2,338 2,429 Change in corporate tax rate — — 1,756 Deferred income tax expense (benefit) (445) (188) (484) Total income tax provision $ 1,600 $ 2,150 $ 3,701 Items that gave rise to significant portions of deferred income taxes are as follows: September 30, September 30, 2020 2019 (Dollars in Thousands) Deferred tax assets: Allowance for loan losses $ 2,071 $ 1,488 Nonaccrual interest 561 487 Accrued vacation 16 7 Capital loss carryforward 4 121 Split dollar life insurance 9 9 Post-retirement benefits 72 76 Realized loss on equity securities 3 — Unrealized losses on interest rate swaps 3,596 1,836 Deferred compensation 781 809 Goodwill 58 69 Other 48 64 Employee benefit plans 187 216 Total deferred tax assets 7,406 5,182 Valuation allowance (4) (121) Total deferred tax assets, net of valuation allowance 7,402 5,061 Deferred tax liabilities: Property 137 141 Realized gain on equity securities — 19 Unrealized gains on available for sale securities 2,813 2,153 Purchase accounting adjustments 321 215 Deferred loan fees 229 175 Total deferred tax liabilities 3,500 2,703 Net deferred tax assets $ 3,902 $ 2,358 The Company establishes a valuation allowance for deferred tax assets when management believes that the deferred tax assets are not likely to be realized either through a carry back to taxable income in prior years, future reversals of existing taxable temporary differences, and, to a lesser extent, future taxable income. The valuation allowance totaled $4,000 and $121,000 at September 30, 2020 and 2019, respectively. The income tax expense differs from that computed at the statutory federal corporate tax rate as follows: Year Ended September 30, 2020 2019 2018 Percentage Percentage Percentage of Pretax of Pretax of Pretax Amount Income Amount Income Amount Income (Loss) (Dollars in Thousands) Tax at statutory rate $ 2,343 21.0 % $ 2,453 21.0 % $ 2,611 24.3 % Adjustments resulting from: State tax expense 93 0.8 162 1.3 — — Change in corporate tax rate — — — — 1,756 16.2 Tax exempt income (537) (4.8) (313) (2.7) (77) (0.7) Capital gain from sale of securities (117) (1.0) — — — — Income from bank owned life insurance (138) (1.2) (135) (1.1) (155) (1.4) Employee benefit plans (27) (0.3) (27) (0.2) (134) (1.2) Other (17) (0.2) 10 0.1 (300) (2.9) Income tax expense $ 1,600 14.3 % $ 2,150 18.4 % $ 3,701 34.3 % On December 22, 2017, federal tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), was enacted. The Tax Act makes broad and complex changes to the U.S. tax code that affected our income tax rate in fiscal 2018. The Tax Act reduced the U.S. federal corporate tax rate from 34% to 21%. As a result, the Company was required to re-measure, through income tax expense, the deferred tax assets and liabilities using the enacted rate at which they are expected to be recovered or settled. The revaluation of the net deferred tax asset resulted in additional income tax expense of $1.8 million for the fiscal year ended September 30, 2018. There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company recognizes, when applicable, interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statements of Operations as a component of income tax expense. During fiscal 2017, the Internal Revenue Service conducted an audit of the Company’s tax returns for the year ended September 30, 2014, and no adverse findings were reported. The Company’s federal and state income tax returns for taxable years through September 30, 2016 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Sep. 30, 2020 | |
REGULATORY CAPITAL REQUIREMENTS | |
REGULATORY CAPITAL REQUIREMENTS | 12. REGULATORY CAPITAL REQUIREMENTS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and the Bank’s classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of Tier 1 capital (as defined in the regulations) to average assets (as defined) and risk-weighted assets (as defined), Tier 2 common capital (as defined) to risk-weighted assets and total capital (as defined) to risk-weighted assets. Management believes, as of September 30, 2020 and 2019, that the Company and the Bank met all regulatory capital adequacy requirements to which they each are subject. To be categorized as well capitalized, the Bank must maintain the minimum Tier 1 capital, Tier 1 common equity, Tier 1 risk-based and total risk-based ratios as set forth in the table below. The Company is not subject to the regulatory capital ratios imposed by Basel III on bank holding companies because the Company is deemed to be a small bank holding company. The Company’s and the Bank’s actual capital amounts and ratios are also presented in the following table: To Be Well Capitalized Under Prompt Required for Capital Corrective Action Actual Adequacy Purposes Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) September 30, 2020: Tier 1 capital (to average assets) Company $ 125,618 10.34 % N/A N/A N/A N/A Bank 123,185 10.51 $ 46,867 4.0 % $ 58,584 5.0 % Tier 1 Common (to risk-weighted assets) Company 125,618 17.21 N/A N/A N/A N/A Bank 123,185 16.88 32,841 4.5 47,437 6.5 Tier 1 capital (to risk-weighted assets) Company 125,618 17.21 N/A N/A N/A N/A Bank 123,185 16.88 43,788 6.0 58,384 8.0 Total capital (to risk-weighted assets) Company 134,389 18.41 N/A N/A N/A N/A Bank 131,956 18.08 58,384 8.0 72,980 10.0 September 30, 2019: Tier 1 capital (to average assets) Company $ 131,859 10.89 % N/A N/A N/A N/A Bank 129,486 10.49 $ 49,386 4.0 % $ 61,732 5.0 % Tier 1 Common (to risk-weighted assets) Company 131,859 18.43 N/A N/A N/A N/A Bank 129,486 18.10 32,190 4.5 46,497 6.5 Tier 1 capital (to risk-weighted assets) Company 131,859 18.43 N/A N/A N/A N/A Bank 129,486 18.10 28,613 6.0 42,920 8.0 Total capital (to risk-weighted assets) Company 137,842 19.27 N/A N/A N/A N/A Bank 135,469 18.94 57,227 8.0 71,534 10.0 |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Sep. 30, 2020 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 13. EMPLOYEE BENEFITS The Bank is a member of a multi-employer (under the provisions of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986) defined benefit pension plan covering all employees meeting certain eligibility requirements. The Bank’s policy is to fund pension costs accrued. The expense relating to this plan for the years ended September 30, 2020, 2019 and 2018 was $743,000, $632,000 and $441,000, respectively. There are no collective bargaining agreements in place that require contributions to the plan. Additional information regarding the plan as of September 30, 2020 is noted below: Pentegra Defined Legal Name of Plan Financial Institutions Plan Employer Identification Number 13-5645888 The Company's Contribution for the year ended September 30, 2020 $ 743,000 Are Company's Contributions more than 5% of total contributions? No Funded Status 85.09 % The Pentegra Defined Benefits Plan for Financial Institutions is a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. In November 2016, participation in the plan by Bank employees was frozen in an effort to reduce expenses on a going forward basis. The Bank also has a defined contribution plan for employees meeting certain eligibility requirements. The defined contribution plan may be terminated at any time at the discretion of the Bank. There were expenses relating to this plan for the fiscal years ended September 30, 2020, 2019 and 2018 of $231,000, $126,000 and $102,000, respectively. The Company maintains the 2008 Recognition and Retention Plan (“RRP”) which is administered by a committee of the Board of Directors of the Company. The RRP provides for the grant of shares of common stock of the Company to officers, employees and directors of the Company. In order to fund the grant of shares under the RRP, the 2008 RRP purchased 213,528 shares (on a converted basis) of the Company’s common stock in the open market for an aggregating cost of approximately $2.5 million, at an average purchase price per share of $11.49. The Company made sufficient contributions to the 2008 RRP to fund these purchases. During February 2015, shareholders approved the 2014 Stock Incentive Plan (the “2014 SIP”). As part of the 2014 SIP, a maximum of 285,655 shares of common stock can be awarded as restricted stock awards or units, of which 233,500 shares were awarded during February 2015. In August 2016, the Company granted 7,473 shares under the 2008 RRP and 3,027 shares under the 2014 SIP. In March 2017, the Company granted 17,128 shares under the 2014 SIP. In March 2018, the Company granted 8,209 shares under the 2008 RRP and 18,291 shares under the 2014 SIP. Shares subject to awards under either plan generally vest at the rate of 20% per year over five years. A summary of the Company’s non-vested stock award activity for the year ended September 30, 2020 is presented in the following table: Year Ended September 30, 2020 Number of Weighted Average Shares Grant Date Fair Value Non-vested stock awards at October 1, 2019 68,980 $ 15.05 Granted — — Forfeited (1,800) 18.46 Vested (44,124) 13.49 Non-vested stock awards at September 30, 2020 23,056 $ 17.78 The Company maintains the 2008 Stock Option Plan (the “Option Plan”) which authorizes the grant of stock options to officers, employees and directors of the Company to acquire shares of common stock with an exercise price at least equal to the fair market value of the common stock on the grant date. Options generally become vested and exercisable at the rate of 20% per year over five years and are generally exercisable for a period of ten years after the grant date. A total of 533,808 (on a converted basis) shares of common stock were approved for future issuance pursuant to the Option Plan. As of September 30, 2018, all of the options had been awarded under the Option Plan. The 2014 SIP reserved up to 714,145 shares for issuance pursuant to options. Options to purchase 605,000 shares were awarded during February 2015 pursuant to the 2014 SIP. During August 2016, the Company granted 18,866 shares under the Option Plan and 8,634 shares under the 2014 SIP. In March 2017, the Company granted 22,828 shares under the 2014 SIP. In May 2017, the Company granted 25,000 shares under the 2014 SIP and 283 shares under the Option Plan. In March 2018, the Company granted 159,265 shares under the 2014 SIP and 18,235 shares under the Option Plan. In July 2019, the Company granted 39,702 shares under the 2014 SIP. In September 2020, the Company granted 12,500 shares under the 2014 SIP. A summary of the status of the Company’ stock options under the Option Plan and the 2014 SIP as of September 30, 2020 and changes during the year ended September 30, 2020 are presented below: Year Ended September 30, 2020 Number of Weighted Average Shares Exercise Price Options outstanding at October 1, 2019 793,034 $ 13.86 Granted 12,500 10.00 Exercised (45,276) 8.39 Forfeited (189,000) 11.97 Outstanding at September 30, 2020 571,258 $ 14.58 Exercisable at September 30, 2020 397,465 $ 13.45 The weighted average remaining contractual term of the outstanding options was approximately 6.1 years for options outstanding as of September 30, 2020. 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%. The fair value for grants made in fiscal 2020 was estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: an exercise and fair value of $10.00, term of seven years, volatility rate of 33.22%, interest rate of 0.41% and a yield rate of 2.80%. During the year ended September 30, 2020, $353,000 was recognized in aggregate compensation expense for the Option Plan and the 2014 SIP. During the year ended September 30, 2019, $573,000 was recognized in aggregate compensation expense for the Option Plan and the 2014 SIP. During the year ended September 30, 2018, $540,000 was recognized in aggregate compensation expense for the Option Plan and the 2014 SIP. At September 30, 2020, approximately $423,000 million of additional compensation expense for awarded options remained unrecognized. The weighted average period over which this expense will be recognized is approximately 2.8 years. |
INTEREST RATE SWAP AGREEMENTS
INTEREST RATE SWAP AGREEMENTS | 12 Months Ended |
Sep. 30, 2020 | |
INTEREST RATE SWAP AGREEMENTS | |
INTEREST RATE SWAP AGREEMENTS | 14. INTEREST RATE SWAP AGREEMENTS The Company uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of either fixed or variable-rate amounts in exchange for the receipt of variable or fixed-rate amounts from a counterparty, respectively. The Company uses interest rate swaps to manage its exposure to changes in fair value. Interest rate swaps designated as fair value hedges involve the receipt of variable-rate payments from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. The Company has contracted with a third party to participate in interest rate swap contracts. There are thirteen additional cash flow hedges tied to wholesale funding at September 30, 2020. These interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments. During the fiscal year ended September 30, 2020, $4,000 of expense was recognized as ineffectiveness through earnings, while $12,000 of income was recognized as ineffectiveness through earnings during fiscal 2019. There was no such expense 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 four loans and seven investment securities as of September 30, 2020 and 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 three loans and seven investments at September 30, 2019. The fair value of the swaps is recorded in the other liabilities section of the statement of financial condition. Below is a summary of the interest rate swap agreements and the terms as of September 30, 2020 and 2019. 2020 Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Loss (Dollars in thousands) State and political subdivisions $ 21,570 3.06 % 3.07 % 3 Mth Libor 1-Feb-27 1-May-28 $ (3,834) Commercial loans 23,656 4.10 % 5.74 % 1 Mth Libor +225 to 276 bp 13-Jun-25 1-Aug-26 — 30 day wholesale funding 90,000 1.36 % 2.70 % 1 Mth Libor 15-Feb-24 12-Jun-26 (6,157) 90 day wholesale funding 135,000 2.51 % 2.78 % 3 Mth Libor 11-Jan-24 27-Mar-24 (10,969) $ (20,960) 2019 Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Loss (Dollars in t housands) FHLB advance $ 10,000 2.70 % 2.70 % 1 Mth Libor 10-Apr-25 10-Apr-25 $ (719) State and political subdivisions 21,570 3.06 % 3.07 % 3 Mth Libor 1-Feb-27 1-May-28 (2,502) Commercial loans 17,229 4.10 % 5.74 % 1 Mth Libor +250 to 276 bp 13-Jun-25 1-Aug-26 — 30 day wholesale funding 65,000 1.94 % 2.51 % 1 Mth Libor 15-Feb-24 12-Jun-26 (1,415) 90 day wholesale funding 135,000 2.51 % 2.78 % 3 Mth Libor 11-Jan-24 27-Mar-24 (6,605) $ (11,241) |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Sep. 30, 2020 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
COMMITMENTS AND CONTINGENT LIABILITIES | 15. COMMITMENTS AND CONTINGENT LIABILITIES At September 30, 2020, the Company had $29.9 million in outstanding commitments to originate fixed and variable-rate loans with market interest rates ranging from 3.25% to 4.75%. At September 30, 2019, the Company had $32.4 million in outstanding commitments to originate fixed and variable-rate loans with market interest rates ranging from 1.99% to 6.50%. The aggregate undisbursed portion of loans-in-process amounted to $86.9 million and $114.5 million, respectively, at September 30, 2020 and 2019. The Company also had commitments under unused lines of credit of $40.1 million as of September 30, 2020 and $37.5 million as of September 30, 2019 and letters of credit outstanding of $1.1 million as of September 30, 2020 and $1.5 million as of September 30, 2019. The Company is subject to various pending claims and contingent liabilities arising in the normal course of business which are not reflected in the accompanying consolidated financial statements. Management considers that the aggregate liability, if any, resulting from such matters will not be material. Among the Company’s contingent liabilities are exposures to limited recourse arrangements with respect to the Company’s sales of whole loans and participation interests. At September 30, 2020, the exposure, which represents a portion of credit risk associated with the sold interests, amounted to $1.0 million. This exposure is for the life of the related loans and payables, on the Company’s proportionate share, as actual losses are incurred. The Company is involved in various legal proceedings occurring in the ordinary course of business. Management of the Company, based on discussions with litigation counsel, does not believe that such proceedings will have a material adverse effect on the financial condition or operations of the Company. However, there can be no assurance that any of the outstanding legal proceedings to which the Company is party will not be decided adversely to the Company’s interest and have a material adverse effect on the financial condition and operations of the Company. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 16. FAIR VALUE MEASUREMENT The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2020 and 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 Level 2 Level 3 Those assets as of September 30, 2020 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 $ — $ 22,394 $ — $ 22,394 State and political subdivisions — 79,621 — 79,621 Mortgage-backed securities - U.S. Government agencies — 236,566 — 236,566 Corporate bonds — 81,783 — 81,783 Equity security - FHLMC preferred stock 51 — — 51 Total $ 51 $ 420,364 $ — $ 420,415 Liabilities: Interest rate swap contracts $ — $ 20,960 $ — $ 20,960 Total $ — $ 20,960 $ — $ 20,960 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. Investments and Mortgage-Backed Securities The fair value of investment securities and mortgage-backed securities is based on quoted market prices, dealer quotes, and prices obtained from independent pricing services. Impaired Loans Collateral dependent impaired loans are based on the fair value of the collateral which is based on appraisals and would be categorized as Level 2 measurement. In some cases, adjustments are made to the appraised values for various factors including the age of the appraisal, age of the comparable included in the appraisal, and known changes in the market and in the collateral. These adjustments are based upon unobservable inputs, and therefore, the fair value measurement has been categorized as a Level 3 measurement. These loans are reviewed for impairment and written down to their net realizable value by charges against the allowance for loan losses. The collateral underlying these loans had a fair value of $13.0 million and $15.5 million at September 30, 2020 and 2019, respectively. Real Estate Owned Once an asset is determined to be uncollectible, the underlying collateral is generally repossessed and reclassified to foreclosed real estate and repossessed assets. These repossessed assets are carried at the lower of cost or fair value of the collateral, based on independent appraisals, less cost to sell and would be categorized as Level 2 measurement. In some cases, adjustments are made to the appraised values for various factors including the age of the appraisal, the age of the comparables included in the appraisal, and known changes in the market and in the collateral. Thus the evaluations are based upon unobservable inputs, and therefore, the fair value measurement has been categorized as a Level 3 measurement. Summary of Non-Recurring Fair Value Measurements At September 30, 2020 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 13,037 $ 13,037 Other real estate owned — — — — Total $ — $ — $ 13,037 $ 13,037 At September 30, 2019 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 15,542 $ 15,542 Other real estate owned — — 348 348 Total $ — $ — $ 15,890 $ 15,890 The following tables provide information describing the valuation processes used to determine nonrecurring fair value measurements categorized within level 3 of the fair value hierarchy: At September 30, 2020 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Impaired loans $ 13,037 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 6% to 9% discount / 7% Other real estate owned $ — 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% Other 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 amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is necessarily required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. On a prospective basis, the Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes in the financial statements. The Company estimated the fair value based on guidance from ASC 820-10, Fair Value Measurements, which defines fair value as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is no active observable market for sale information on community bank loans and, thus, Level 3 fair value procedures were utilized, primarily in the use of present value techniques incorporating assumptions that market participants would use in estimating fair values. Fair Value Measurements at Carrying Fair September 30, 2020 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Investment and mortgage-backed securities held to maturity $ 22,860 $ 24,330 $ — $ 24,330 $ — Loans receivable, net 588,300 593,768 — — 593,768 Liabilities: Certificates of deposit 269,610 278,224 — — 278,224 Advances from FHLB -long-term 260,253 274,172 — — 274,172 Fair Value Measurements at Carrying Fair September 30, 2019 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Investment and mortgage-backed securities held to maturity $ 68,635 $ 69,507 $ — $ 69,507 $ — Loans receivable, net 585,456 585,476 — — 585,476 Liabilities: Certificates of deposit 513,183 529,099 — — 529,099 Advances from FHLB -long-term 286,904 293,839 — — 293,839 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Sep. 30, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 17. GOODWILL AND OTHER INTANGIBLE ASSETS The Company’s goodwill and intangible assets are related to the acquisition of Polonia Bancorp completed as of January 1, 2017. Balance Balance October 1, Additions/ September 30, Amortization 2019 Adjustments Amortization 2020 Period (Dollars in Thousands) Goodwill $ 6,102 $ — $ — $ 6,102 Core deposit intangible 448 — (108) 340 10 years $ 6,550 $ — $ (108) $ 6,442 As of September 30, 2020, the future fiscal periods amortization expense for the core deposit intangible is: (In Thousands) 2021 $ 93 2022 78 2023 64 2024 49 2025 34 Thereafter 22 $ 340 |
LEASES
LEASES | 12 Months Ended |
Sep. 30, 2020 | |
LEASES [Abstract] | |
LEASES | 18. 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 of ASU 2016-02 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 lease, 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 five Lease expense was $236,000, $304,000 and $360,000 for the years ended September 30, 2020, 2019 and 2018, respectively. The Company has executed certain lease commitments and is, as a result, obligated to pay the following amounts: $253,000 for fiscal year 2021, $256,000 for fiscal year 2022, $260,000 for fiscal year 2023, $263,000 for fiscal 2024, $276,000 for fiscal 2025 and $484,000 thereafter As of September 30, 2020, operating lease ROU assets were $1.3 million and operating lease liabilities were $1.4 million. The following table summarizes other information related to our operating leases: September 30, 2020 Weighted-average remaining lease term - operating leases in years 7.25 Weighted-average discount rate - operating leases 2.0 % The following table presents aggregate lease (Dollars in Thousands) 2021 $ 210 2022 213 2023 216 2024 220 2025 231 2025 and thereafter 416 Total lease payments 1,506 Less: interest 103 Present value of lease liabilities $ 1,403 |
PRUDENTIAL BANCORP, INC. (PAREN
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) | 12 Months Ended |
Sep. 30, 2020 | |
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) | |
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) | 19. PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) STATEMENT OF FINANCIAL CONDITION September 30, 2020 2019 (Dollars in Thousands) Assets: Cash $ 955 $ 1,004 Investment in Bank 126,684 137,238 Other assets 1,478 1,369 Total assets $ 129,117 $ 139,611 Stockholders' equity: Preferred stock $ — $ — Common stock 108 108 Additional paid-in-capital 118,270 118,384 Treasury stock (39,207) (29,698) Retained earnings 52,889 49,625 Accumulated other comprehensive (loss) income (2,943) 1,192 Total stockholders' equity $ 129,117 $ 139,611 STATEMENT OF OPERATIONS For the year ended September 30, 2020 2019 2018 (Dollars in Thousands) Interest on ESOP loan $ — $ — $ 59 Equity in the earnings of the Bank 9,959 9,954 7,465 Total income 9,959 9,954 7,524 Professional services 168 168 168 Other expense 344 369 362 Total expense 512 537 530 Income before income taxes 9,447 9,417 6,936 Income tax benefit (108) (113) (128) Net income $ 9,555 $ 9,530 $ 7,064 CASH FLOWS For the year ended September 30, 2020 2019 2018 (Dollars in Thousands) Operating activities: Net income $ 9,555 $ 9,530 $ 7,064 Other, net 52 (115) (108) Equity in the undistributed earnings of the Bank (9,959) (9,954) (7,465) Net cash used in operating activities (352) (539) (509) Financing activities: Purchase of treasury stock (10,481) (3,108) (2,548) Cash dividends paid (6,216) (5,784) (6,300) Dividends from the Bank 17,000 5,000 5,000 Net cash provided by (used in) financing activities 303 (3,892) (3,848) Net decrease in cash and cash equivalents (49) (4,431) (4,357) Cash and cash equivalents, beginning of year 1,004 5,435 9,792 Cash and cash equivalents, end of year $ 955 $ 1,004 $ 5,435 |
CONSOLIDATED QUARTERLY FINANCIA
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Sep. 30, 2020 | |
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) | |
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) | 20. CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) Unaudited quarterly financial data for the years ended September 30, 2020, 2019, and 2018 is as follows: September 30, 2020 September 30, 2019 1st 2nd 3rd 4th 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr (Dollars in Thousands, Except Per Share Data) Interest income $ 11,827 $ 11,010 $ 9,791 $ 9,599 $ 10,001 $ 11,134 $ 11,273 $ 11,631 Interest expense 5,484 5,222 4,486 4,233 3,986 4,811 5,058 5,434 Net interest income 6,343 5,788 5,305 5,366 6,015 6,323 6,215 6,197 Provision for loan losses 125 500 750 1,650 0 0 0 100 Net interest income after provision for loan losses 6,218 5,288 4,555 3,716 6,015 6,323 6,215 6,097 Non-interest income 832 2,668 3,762 841 380 542 1,187 985 Non-interest expense 4,021 4,460 3,996 4,248 3,992 4,146 4,190 3,696 Income before income tax expense 3,029 3,496 4,321 309 2,403 2,719 3,212 3,386 Income tax expense (benefit) 566 572 701 (239) 429 380 582 799 Net income $ 2,463 $ 2,924 $ 3,620 $ 548 $ 1,974 $ 2,339 $ 2,630 $ 2,587 Per share: Earnings per share - basic $ 0.28 $ 0.33 $ 0.44 $ 0.07 $ 0.22 $ 0.27 $ 0.30 $ 0.30 Earnings per share - diluted $ 0.28 $ 0.32 $ 0.44 $ 0.07 $ 0.22 $ 0.26 $ 0.29 $ 0.29 Dividends per share $ 0.07 $ 0.50 $ 0.07 $ 0.07 $ 0.05 $ 0.05 $ 0.50 $ 0.05 September 30, 2018 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr (Dollars in Thousands, Except Per Share Data) Interest income $ 8,036 $ 8,355 $ 8,931 $ 9,529 Interest expense 1,900 2,127 2,709 3,401 Net interest income 6,136 6,228 6,222 6,128 Provision for loan losses 210 150 325 125 Net interest income after provision for loan losses 5,926 6,078 5,897 6,003 Non-interest income 415 567 985 533 Non-interest expense 4,043 3,869 3,770 3,957 Income before income tax expense 2,298 2,776 3,112 2,579 Income tax expense 2,264 619 676 142 Net income $ 34 $ 2,157 $ 2,436 $ 2,437 Per share: Earnings per share - basic $ — $ 0.24 $ 0.28 $ 0.27 Earnings per share - diluted $ — $ 0.24 $ 0.26 $ 0.26 Dividends per share $ 0.20 $ 0.05 $ 0.05 $ 0.40 Due to rounding, the sum of the earnings per share in individual quarters may differ from reported amounts. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Consolidation | Consolidation – . |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements — |
Cash and Cash Equivalents | Cash and Cash Equivalents — |
Certificates of Deposit | Certificates of Deposit— one |
Investment Securities and Mortgage-Backed Securities | Investment Securities and Mortgage-Backed Securities — Held to Maturity Available for Sale of investment and mortgage-backed securities are reported in earnings as of the trade date and determined using the adjusted cost of the specific security sold. Premiums are amortized and discounts are accreted using the interest method over the estimated remaining term of the underlying security. Equity Securities |
Other-than-temporary impairment | Other-than-temporary impairment |
Loans Receivable | Loans Receivable — |
Loan Origination and Commitment Fees | Loan Origination and Commitment Fees — |
Interest on Loans | Interest on Loans — |
Allowance for Loan Losses | Allowance for Loan Losses— Impaired loans are loans for which it is not probable to collect all amounts due according to the contractual terms of the loan agreements. Management individually evaluates such loans for impairment and does not aggregate loans by major risk classifications. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for impaired loans is determined by the difference between the present value of the expected cash flows related to the loans, using the original interest rate, and their recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. When foreclosure is probable, impairment is measured based on the fair value of the collateral. Mortgage loans and consumer loans are comprised of large groups of smaller balance homogeneous loans which are evaluated for impairment collectively. Loans that experience insignificant payment delays, which are defined as delays of less than 90 days, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all of the circumstances surrounding the loan and the borrower including the length of the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed. |
Real Estate Owned | Real Estate Owned — |
Restricted Bank Stock | Restricted Bank Stock – The Bank is a member of the FHLB of Pittsburgh and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted; (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance; (c) the impact of legislative and regulatory changes on the customer base of the FHLB; and (d) the liquidity position of the FHLB. The FHLB of Pittsburgh continues to report net income, continues to declare quarterly cash dividends and had its Aaa bond rating affirmed by Moody’s and its AA+ rating affirmed by Standard and Poor’s during 2020 and remained unchanged as of September 30, 2020. With consideration given to these factors, management concluded that the stock was not impaired at September 30, 2020 or 2019. In 2018, the Bank purchased $90,000 of stock in ACBB to support a $12.5 million line of credit. The line has not been drawn on. |
Office Properties and Equipment | Office Properties and Equipment — |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance— |
Dividend Payable | Dividend Payable |
Goodwill | Goodwill recognized as an asset and is to be reviewed for impairment annually as of March 31 and between annual tests when events and circumstances indicate that impairment may have occurred. The Company’s goodwill and intangible assets are related to the acquisition of Polonia Bancorp on January 1, 2017. |
Share-Based Compensation | Share-Based Compensation |
Treasury Stock | Treasury Stock – |
Comprehensive Income | Comprehensive Income |
Income Taxes | Income Taxes— In evaluating the Company’s ability to recover deferred tax assets, management considers all available positive and negative evidence, including past operating results and forecast of future taxable income. In determining future taxable income, management makes assumptions for the amount of taxable income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require management to make judgments about future taxable income and are consistent with the plans and estimates the Company uses to manage the business. Any reduction in estimated future taxable income may require management to record an additional valuation allowance against the deferred tax assets. An increase in the valuation allowance would result in additional income tax expense in the period and could have a significant impact on our future earnings. |
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities | Transfers and Servicing of Financial Assets and Extinguishments of Liabilities — |
Interest Rate Swap Agreement | Interest Rate Swap Agreement - to hedge various exposures or to modify interest rate characteristics of assets and liabilities. Interest rate swaps are contracts in which a series of interest rate flow is exchanged over a prescribed period. The notional amount on which the interest payments are based is not exchanged. These swap agreements are derivative instruments and generally convert a portion of the Company’s variable-rate debt to a fixed-rate (cash flow hedge) and convert a portion of its fixed-rate loans to a variable rate (fair value hedge). For the fair value hedges, changes in the fair value of the interest rate swap are expected to be “perfectly effective” in offsetting changes in the fair value of the hedged item, thus no portion of the change in market value is anticipated to be recognized in earnings. For cash flow hedges, the net settlement (upon close-out or termination) that offsets changes in the value of the hedged debt is deferred and amortized into net interest income over the life of the hedged debt. For fair value hedges, the net settlement (upon close-out or termination) that offsets changes in the value of the loans adjusts the basis of the loans and is deferred and amortized to loan interest income over the life of the loans. The portion, if any, of the net settlement amount that did not offset changes in the value of the hedged asset or liability is recognized immediately in non-interest income. Interest rate derivative financial instruments receive hedge accounting treatment only if they are designated as a hedge and are expected to be, and are, effective in substantially reducing interest rate risk arising from the assets and liabilities identified as exposing the Company to risk. Those derivative financial instruments that do not meet specified hedging criteria would be recorded at fair value, with changes in fair value recorded in income. If periodic assessment indicates derivatives no longer provide an effective hedge, the derivative contracts would be closed out and settled, or classified as a trading activity. |
Loans Acquired | Loans Acquired For purchased loans acquired that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value. Loans are aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. Subsequent to the purchase date, the methods utilized to estimate the required allowance for credit losses for these loans is similar to originated loans; however, the Company records a provision for loan losses only when the required allowance exceeds any remaining credit discounts. The remaining differences between the purchase price and the unpaid principal balance at the date of acquisition are recorded in interest income over the life of the loans. |
Reclassification of Comparative Amounts | Reclassification of Comparative Amounts - |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective October 1, 2019, the Company adopted ASU 2016-02 – Leases 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 the 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, as of October 1, 2019, 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 8. 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 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In November 2019, the FASB issued ASU 2019-10, Financial Instruments ‒ Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) , which deferred the effective date for ASC 350, Intangibles – Goodwill and Other , for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. This Update is not expected to have a significant impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements 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. 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 2019-08, Compensation ‒ Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606), which requires entities to measure and classify share-based 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 share-based 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) Codification Improvements to Topic 326, Financial Instruments – Credit Losses Income Taxes (Topic 740) 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. In January 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020, to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met, and can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through December 31, 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) | 12 Months Ended |
Sep. 30, 2020 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted earnings per share | Year Ended September 30, 2020 2019 2018 (Dollars in Thousands Except Per Share Data) Basic Diluted Basic Diluted Basic Diluted Net income $ 9,555 $ 9,555 $ 9,530 $ 9,530 $ 7,064 $ 7,064 Weighted average common shares outstanding 8,538,006 8,538,006 8,777,794 8,777,794 8,855,938 8,855,938 Effect of CSEs — 24,470 — 158,083 — 204,175 Adjusted weighted average common shares used in earnings per share computation 8,538,006 8,562,476 8,777,794 8,935,877 8,855,938 9,060,113 Earnings per share $ 1.12 $ 1.12 $ 1.09 $ 1.07 $ 0.80 $ 0.78 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
Schedule of changes in accumulated other comprehensive (loss) income | Year Ended September 30, 2020 2020 2020 2019 2019 2019 (Dollars in Thousands) Total Total accumulated accumulated Unrealized gain Unrealized gain (loss) other Unrealized gain Unrealized gain (loss) other (loss) on AFS on interest rate swaps comprehensive (loss) on AFS on interest rate comprehensive securities (a) (a) income (loss) securities (a) swaps (a) loss Beginning Balance, October 1 $ 8,098 $ (6,906) $ 1,192 $ (8,320) $ 166 $ (8,154) Other comprehensive (loss) income before reclassification 7,221 (6,622) 599 17,278 (7,072) 10,206 Amount reclassified from accumulated other comprehensive income (4,734) — (4,734) (835) — (835) Reclassification for net gains recorded in net income — — — (25) — (25) Ending Balance, September 30 $ 10,585 $ (13,528) $ (2,943) $ 8,098 $ (6,906) $ 1,192 Year Ended September 30, 2018 2018 2018 (Dollars in Thousands) Total accumulated Unrealized gain Unrealized gain (loss) other (loss) on AFS on interest rate swaps comprehensive securities (a) (a) gain (loss) Beginning Balance $ (1,091) $ 331 $ (760) Other comprehensive (loss) income before reclassification (7,171) 473 (6,698) Amount reclassified from accumulated other comprehensive income 245 (638) (393) Reclassification for net gains recorded in net income (303) — (303) Ending Balance $ (8,320) $ 166 $ (8,154) (a) All amounts are net of tax. Amounts in parentheses indicate debits. |
Schedule of amounts reclassified out of each component of accumulated other comprehensive (loss) income | Year Ended September 30, 2020 2020 2020 2019 2019 2019 (Dollars in Thousands) Securities Swaps Total Securities Swaps Total Unrealized gain (losses) $ 5,993 (1) $ — (2) $ 5,993 $ 1,057 (1) $ — (2) $ 1,057 Income taxes (1,259) (3) — (3) (1,259) (222) (3) — (3) (222) $ 4,734 $ — $ 4,734 $ 835 $ — $ 835 Year Ended September 30, 2018 2018 2018 (Dollars in Thousands) Securities Swaps Total Unrealized gain (losses) $ (310) (1) $ 808 (2) $ 498 Income taxes 65 (3) (170) (3) (105) $ (245) $ 638 $ 393 (1) Recorded as a gain (loss) on the sale of mortgage-backed securities. (2) Recorded as swap (loss) income. (3) Recorded as income tax expense. |
INVESTMENT AND MORTGAGE-BACKE_2
INVESTMENT AND MORTGAGE-BACKED SECURITIES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | |
Schedule of amortized cost and fair value of securities, with gross unrealized gains and losses | The amortized cost and fair value of securities, with gross unrealized gains and losses, are as follows: September 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 22,241 $ 153 $ — $ 22,394 State and political subdivisions 79,099 1,940 (1,418) 79,621 Mortgage-backed securities - U.S. government agencies 226,863 9,774 (71) 236,566 Corporate debt securities 78,764 3,564 (545) 81,783 Total debt securities available for sale $ 406,967 $ 15,431 $ (2,034) $ 420,364 Securities Held to Maturity: U.S. government and agency obligations $ 1,000 $ 236 $ — $ 1,236 State and political subdivisions 18,076 925 — 19,001 Mortgage-backed securities - U.S. government agencies 3,784 309 — 4,093 Total securities held to maturity $ 22,860 $ 1,470 $ — $ 24,330 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 |
Schedule of gross unrealized losses and related fair values of investment securities | 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: State and political subdivisions $ (126) $ 10,735 $ (1,292) $ 24,510 $ (1,418) $ 35,245 Mortgage-backed securities -U.S. government agencies (66) 10,025 (5) 584 (71) 10,609 Corporate debt securities (545) 16,472 — — (545) 16,472 Total securities available for sale $ (737) $ 37,232 $ (1,297) $ 25,094 $ (2,034) $ 62,326 Less than 12 months More than 12 months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in Thousands) Securities Available for Sale: US government and agency obligations $ (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 debt securities (13) 1,989 (25) 3,014 (38) 5,003 Total securities available for sale $ (106) $ 59,933 $ (1,183) $ 67,720 $ (1,289) $ 127,653 Securities Held to Maturity: U.S. government and agency obligations $ (188) $ 14,811 $ — $ — $ (188) $ 14,811 Mortgage-backed securities - US government agencies (4) 794 — — (4) 794 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 | September 30, 2020 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in Thousands) Due after one through five years $ 5,739 $ 6,213 $ 28,495 $ 29,529 Due after five through ten years 8,313 8,727 51,454 53,546 Due after ten years 5,024 5,297 100,155 100,723 Total $ 19,076 $ 20,237 $ 180,104 $ 183,798 |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
LOANS RECEIVABLE | |
Schedule of loans receivable | September 30, September 30, 2020 2019 (Dollars in Thousands) One-to-four family residential $ 233,872 $ 268,780 Multi-family residential 31,100 30,582 Commercial real estate 139,943 128,521 Construction and land development 260,648 253,368 Loans to financial institutions 6,000 6,000 Commercial business 12,916 19,630 Leases 176 518 Consumer 604 834 Total loans 685,259 708,233 Undisbursed portion of loans-in-process (86,862) (114,528) Deferred loan fees (1,794) (2,856) Allowance for loan losses (8,303) (5,393) Net loans $ 588,300 $ 585,456 |
Schedule of loans individually and collectively evaluated for impairment by loan segment | The following table summarizes the loans individually and collectively evaluated for impairment by loan segment at September 30, 2020: One- to Loans to four- Multi-family Commercial Construction and Commercial financial family residential residential real estate land development business institutions Leases Consumer Unallocated Total (Dollars in Thousands) Allowance for loan losses: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,877 460 1,989 2,888 194 89 3 6 797 8,303 Total ending allowance balance $ 1,877 $ 460 $ 1,989 $ 2,888 $ 194 $ 89 $ 3 $ 6 $ 797 $ 8,303 Loans: Individually evaluated for impairment $ 3,095 $ — $ 1,417 $ 8,525 $ — $ — $ — $ — $ 13,037 Collectively evaluated for impairment 230,777 31,100 138,526 252,123 12,916 6,000 176 604 672,222 Total loans $ 233,872 $ 31,100 $ 139,943 $ 260,648 $ 12,916 $ 6,000 $ 176 $ 604 $ 685,259 The following table summarizes the loans individually and collectively evaluated for impairment by loan segment at September 30, 2019: One- to Loans to four- Multi-family Commercial Construction and Commercial financial family residential residential real estate land 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, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2020: 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 $ — $ — $ 3,095 $ 3,095 $ 3,482 Commercial real estate — — 1,417 1,417 1,600 Construction and land development — — 8,525 8,525 10,906 Total $ — $ — $ 13,037 $ 13,037 $ 15,988 The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2019: Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ — $ — $ 4,827 $ 4,827 $ 5,179 Commercial real estate — — 1,965 1,965 2,125 Construction and land development — — 8,750 8,750 11,131 Total $ — $ — $ 15,542 $ 15,542 $ 18,435 |
Schedule of average investment in impaired loans and related interest income recognized | Year Ended September 30, 2020 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 3,825 $ 13 $ 26 Multi-family residential 56 — — Commercial real estate 1,549 — 1 Construction and land development 8,685 — — Commercial business 2 — — Consumer 24 — — Total impaired loans $ 14,140 $ 13 $ 27 Year Ended September 30, 2019 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 4,685 $ 77 $ 22 Multi-family residential 145 10 — Commercial real estate 2,139 36 4 Construction and land development 8,751 — — Total impaired loans $ 15,720 $ 123 $ 26 Year Ended September 30, 2018 Average Income Recorded Income Recognized Recognized on Investment on Accrual Basis Cash Basis (Dollars in Thousands) One-to-four family residential $ 5,741 $ 24 $ 59 Multi-family residential 306 21 — Commercial real estate 2,557 40 7 Construction and land development 8,743 — — Total $ 17,347 $ 85 $ 66 |
Schedule of classes of the loan portfolio in which a formal risk weighting system is utilized | September 30, 2020 Special Pass Mention Substandard Doubtful Total (Dollars in Thousands) One-to-four residential $ 229,361 $ 1,416 $ 3,095 $ — $ 233,872 Multi-family residential 31,100 — — — 31,100 Commercial real estate 128,527 9,999 1,417 — 139,943 Construction and land development 252,123 — 8,525 — 260,648 Loans to financial institutions 6,000 — — — 6,000 Commercial business 12,916 — — — 12,916 Total $ 660,027 $ 11,415 $ 13,037 $ — $ 684,479 September 30, 2019 Special Pass Mention Substandard Doubtful Total (Dollars in Thousands) One-to-four residential $ 262,164 $ 1,789 $ 4,827 $ — $ 268,780 Multi-family residential 30,582 — — — 30,582 Commercial real estate 122,838 3,718 1,965 — 128,521 Construction and land development 244,618 — 8,750 — 253,368 Loans to financial institutions 6,000 — — — 6,000 Commercial business 19,630 — — — 19,630 Total $ 685,832 $ 5,507 $ 15,542 $ — $ 706,881 |
Schedule of loans in which a formal risk rating system is not utilized, but loans are segregated between performing and non-performing based primarily on delinquency status | September 30, 2020 Non- Performing Performing Total (Dollars in Thousands) Leases $ 176 $ — $ 176 Consumer 604 — 604 Total $ 780 $ — $ 780 September 30, 2019 Non- Performing Performing Total (Dollars in Thousands) Leases $ 518 $ — $ 518 Consumer 834 — 834 Total $ 1,352 $ — $ 1,352 |
Schedule of loan categories of the loan portfolio summarized by the aging categories of performing and delinquent loans and nonaccrual loans | September 30, 2020 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 $ 231,196 $ 523 $ 2,153 $ 2,676 $ 233,872 $ 3,095 $ — Multi-family residential 31,100 — — — 31,100 — — Commercial real estate 136,225 2,301 1,417 3,718 139,943 1,417 — Construction and land development 252,123 — 8,525 8,525 260,648 8,525 — Commercial business 12,916 — — — 12,916 — — Loans to financial institutions 6,000 — — — 6,000 — — Leases 176 — — — 176 — Consumer 604 — — — 604 — — Total Loans $ 670,340 $ 2,824 $ 12,095 $ 14,919 $ 685,259 $ 13,037 $ — 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. | The following tables summarize the primary segments of the allowance for loan losses, segmented into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2020, 2019 and 2018. Activity in the allowance is presented for the years ended September 30, 2020, 2019 and 2018: Year Ended September 30, 2020 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2019 $ 1,002 $ 315 $ 1,257 $ 2,034 $ 206 $ 63 $ 5 $ 13 $ 498 $ 5,393 Charge-offs (3) — — — (15) — — (126) — (144) Recoveries 14 — — — — — 9 6 — 29 Provision 864 145 732 854 3 26 (11) 113 299 3,025 ALLL balance at September 30, 2020 $ 1,877 $ 460 $ 1,989 $ 2,888 $ 194 $ 89 $ 3 $ 6 $ 797 $ 8,303 Year Ended September 30, 2019 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2018 $ 1,325 $ 347 $ 1,154 $ 1,554 $ 187 $ 64 $ 18 $ 17 $ 501 $ 5,167 Charge-offs (7) — — — — — (31) — — (38) Recoveries 164 — — — — — — — — 164 Provision (480) (32) 103 480 19 (1) 18 (4) (3) 100 ALLL balance at September 30, 2019 $ 1,002 $ 315 $ 1,257 $ 2,034 $ 206 $ 63 $ 5 $ 13 $ 498 $ 5,393 September 30, 2018 One- to Multi- Construction Loans to four-family family Commercial and land Commercial financial residential residential real estate development business institutions Leases Consumer Unallocated Total (In Thousands) ALLL balance at September 30, 2017 $ 1,241 $ 205 $ 1,201 $ 1,358 $ 4 $ — $ 23 $ 24 $ 410 $ 4,466 Charge-offs (114) — — (12) — — — (11) — (137) Recoveries 28 — — — — — — — — 28 Provision 170 142 (47) 208 183 64 (5) 4 91 810 ALLL balance at September 30, 2018 $ 1,325 $ 347 $ 1,154 $ 1,554 $ 187 $ 64 $ 18 $ 17 $ 501 $ 5,167 Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,325 347 1,154 1,554 187 64 18 17 501 5,167 |
OFFICE PROPERTIES AND EQUIPME_2
OFFICE PROPERTIES AND EQUIPMENT (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
OFFICE PROPERTIES AND EQUIPMENT | |
Schedule of office properties and equipment | September 30, 2020 2019 (Dollars in Thousands) Land $ 1,437 $ 1,437 Buildings and improvements 7,449 7,449 Furniture and equipment 4,046 3,639 Total 12,932 12,525 Accumulated depreciation (5,803) (5,319) Total office properties and equipment, net of accumulated depreciation $ 7,129 $ 7,206 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
DEPOSITS [Abstract] | |
Schedule of major classifications of deposits | September 30, September 30, 2020 2019 Amount Percent Amount Percent (Dollars in Thousands) Non-interest-bearing checking accounts $ 30,002 3.9 % $ 16,949 2.2 % Interest-bearing checking accounts 135,797 17.6 58,647 7.9 Money market deposit accounts 111,105 14.4 75,766 10.2 Passbook, club and statement savings 224,435 29.1 80,899 10.9 Certificates maturing in six months or less 125,165 16.2 294,343 39.5 Certificates maturing in more than six months 144,445 18.8 218,840 29.3 Total $ 770,949 100.0 % $ 745,444 100.0 % |
Schedule of maturities of certificate accounts | September 30, 2020 (Dollars in Thousands) One year or less $ 170,554 One through two years 43,341 Two through three years 30,389 Three through four years 18,647 Four through five years 6,679 Total $ 269,610 |
Schedule of interest expense on deposits | Year Ended September 30, 2020 2019 2018 (Dollars in Thousands) Checking and money market deposit accounts $ 2,045 $ 899 $ 247 Passbook, club and statement savings accounts 38 124 66 Certificate accounts 8,819 12,137 7,073 Total $ 10,902 $ 13,160 $ 7,386 |
ADVANCES FROM FEDERAL HOME LO_3
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM | |
Schedule of short-term borrowings from the FHLB of Pittsburgh | The years ended September 30, 2020 and 2019 outstanding balances and related information of short-term borrowings from the FHLB of Pittsburgh are summarized follows: At or For the Year Ended September 30, 2020 2019 2018 (Dollars in Thousands) FHLB advances: Average balance outstanding $ 66,735 $ 31,158 $ 18,933 Maximum amount outstanding at any month-end during the period 115,000 90,000 30,200 Balance outstanding at end of period 25,000 90,000 10,000 Average interest rate during the period 1.58 % 2.53 % 1.81 % Weighted average interest rate at end of period 0.39 % 2.32 % 2.31 % |
ADVANCES FROM FEDERAL HOME LO_4
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | |
Schedule of collateral agreement with the FHLB | Lomg-term FHLB advances: Maturity range Weighted average Stated interest rate range Description from to interest rate from to 2020 2019 (Dollars in Thousands) Fixed Rate - Amortizing 1 ‑ Oct ‑ 19 30 ‑ Sep ‑ 20 — % — % — % $ — $ 236 Fixed Rate - Amortizing 1 ‑ Oct ‑ 20 30 ‑ Sep ‑ 21 2.77 % 1.94 % 2.83 % 5,179 14,354 Fixed Rate - Amortizing 1 ‑ Oct ‑ 21 30 ‑ Sep ‑ 22 2.84 % 1.99 % 3.05 % 5,523 8,729 Fixed Rate - Amortizing 1 ‑ Oct ‑ 22 30 ‑ Sep ‑ 23 2.89 % 1.94 % 3.11 % 5,265 6,931 Total 2.83 % $ 15,967 $ 30,250 Fixed Rate - Advances 1 ‑ Oct ‑ 19 30 ‑ Sep ‑ 20 — % — % — % $ — $ 12,304 Fixed Rate - Advances 1 ‑ Oct ‑ 20 30 ‑ Sep ‑ 21 2.37 % 1.42 % 2.92 % 17,996 18,017 Fixed Rate - Advances 1 ‑ Oct ‑ 21 30 ‑ Sep ‑ 22 2.31 % 1.94 % 3.23 % 63,293 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 2.55 % $ 244,286 $ 256,654 2.57 % Total $ 260,253 $ 286,904 |
Schedule of advances from the FHLB of Pittsburgh with coupon rates | Weighted Average Maturity in Fiscal Amount Coupon Rate (Dollars in Thousands) 2021 $ 28,185 2.44 % 2022 67,285 2.32 2023 96,785 2.51 2024 67,998 2.88 $ 260,253 2.57 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
INCOME TAXES | |
Schedule of provision for income taxes | Current: Federal expense $ 1,952 $ 2,133 $ 2,429 State expense 93 205 — Total current taxes 2,045 2,338 2,429 Change in corporate tax rate — — 1,756 Deferred income tax expense (benefit) (445) (188) (484) Total income tax provision $ 1,600 $ 2,150 $ 3,701 |
Schedule of deferred income taxes | September 30, September 30, 2020 2019 (Dollars in Thousands) Deferred tax assets: Allowance for loan losses $ 2,071 $ 1,488 Nonaccrual interest 561 487 Accrued vacation 16 7 Capital loss carryforward 4 121 Split dollar life insurance 9 9 Post-retirement benefits 72 76 Realized loss on equity securities 3 — Unrealized losses on interest rate swaps 3,596 1,836 Deferred compensation 781 809 Goodwill 58 69 Other 48 64 Employee benefit plans 187 216 Total deferred tax assets 7,406 5,182 Valuation allowance (4) (121) Total deferred tax assets, net of valuation allowance 7,402 5,061 Deferred tax liabilities: Property 137 141 Realized gain on equity securities — 19 Unrealized gains on available for sale securities 2,813 2,153 Purchase accounting adjustments 321 215 Deferred loan fees 229 175 Total deferred tax liabilities 3,500 2,703 Net deferred tax assets $ 3,902 $ 2,358 |
Schedule of income tax expense computed at the statutory federal corporate tax rate | Year Ended September 30, 2020 2019 2018 Percentage Percentage Percentage of Pretax of Pretax of Pretax Amount Income Amount Income Amount Income (Loss) (Dollars in Thousands) Tax at statutory rate $ 2,343 21.0 % $ 2,453 21.0 % $ 2,611 24.3 % Adjustments resulting from: State tax expense 93 0.8 162 1.3 — — Change in corporate tax rate — — — — 1,756 16.2 Tax exempt income (537) (4.8) (313) (2.7) (77) (0.7) Capital gain from sale of securities (117) (1.0) — — — — Income from bank owned life insurance (138) (1.2) (135) (1.1) (155) (1.4) Employee benefit plans (27) (0.3) (27) (0.2) (134) (1.2) Other (17) (0.2) 10 0.1 (300) (2.9) Income tax expense $ 1,600 14.3 % $ 2,150 18.4 % $ 3,701 34.3 % |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
REGULATORY CAPITAL REQUIREMENTS | |
Schedule of Company's and the Bank's actual capital amounts and ratios | To Be Well Capitalized Under Prompt Required for Capital Corrective Action Actual Adequacy Purposes Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) September 30, 2020: Tier 1 capital (to average assets) Company $ 125,618 10.34 % N/A N/A N/A N/A Bank 123,185 10.51 $ 46,867 4.0 % $ 58,584 5.0 % Tier 1 Common (to risk-weighted assets) Company 125,618 17.21 N/A N/A N/A N/A Bank 123,185 16.88 32,841 4.5 47,437 6.5 Tier 1 capital (to risk-weighted assets) Company 125,618 17.21 N/A N/A N/A N/A Bank 123,185 16.88 43,788 6.0 58,384 8.0 Total capital (to risk-weighted assets) Company 134,389 18.41 N/A N/A N/A N/A Bank 131,956 18.08 58,384 8.0 72,980 10.0 September 30, 2019: Tier 1 capital (to average assets) Company $ 131,859 10.89 % N/A N/A N/A N/A Bank 129,486 10.49 $ 49,386 4.0 % $ 61,732 5.0 % Tier 1 Common (to risk-weighted assets) Company 131,859 18.43 N/A N/A N/A N/A Bank 129,486 18.10 32,190 4.5 46,497 6.5 Tier 1 capital (to risk-weighted assets) Company 131,859 18.43 N/A N/A N/A N/A Bank 129,486 18.10 28,613 6.0 42,920 8.0 Total capital (to risk-weighted assets) Company 137,842 19.27 N/A N/A N/A N/A Bank 135,469 18.94 57,227 8.0 71,534 10.0 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |
Schedule of multiemployer plans | Pentegra Defined Legal Name of Plan Financial Institutions Plan Employer Identification Number 13-5645888 The Company's Contribution for the year ended September 30, 2020 $ 743,000 Are Company's Contributions more than 5% of total contributions? No Funded Status 85.09 % |
Schedule of summary of the non-vested stock award activity | Year Ended September 30, 2020 Number of Weighted Average Shares Grant Date Fair Value Non-vested stock awards at October 1, 2019 68,980 $ 15.05 Granted — — Forfeited (1,800) 18.46 Vested (44,124) 13.49 Non-vested stock awards at September 30, 2020 23,056 $ 17.78 |
Stock Options | |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |
Schedule of summary of the status of the company' stock options under the stock option plan | Year Ended September 30, 2020 Number of Weighted Average Shares Exercise Price Options outstanding at October 1, 2019 793,034 $ 13.86 Granted 12,500 10.00 Exercised (45,276) 8.39 Forfeited (189,000) 11.97 Outstanding at September 30, 2020 571,258 $ 14.58 Exercisable at September 30, 2020 397,465 $ 13.45 |
INTEREST RATE SWAP AGREEMENTS (
INTEREST RATE SWAP AGREEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
INTEREST RATE SWAP AGREEMENTS | |
Schedule of interest rate swap agreements | 2020 Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Loss (Dollars in thousands) State and political subdivisions $ 21,570 3.06 % 3.07 % 3 Mth Libor 1-Feb-27 1-May-28 $ (3,834) Commercial loans 23,656 4.10 % 5.74 % 1 Mth Libor +225 to 276 bp 13-Jun-25 1-Aug-26 — 30 day wholesale funding 90,000 1.36 % 2.70 % 1 Mth Libor 15-Feb-24 12-Jun-26 (6,157) 90 day wholesale funding 135,000 2.51 % 2.78 % 3 Mth Libor 11-Jan-24 27-Mar-24 (10,969) $ (20,960) 2019 Hedged Notional Pay Rate Receive Maturity Date Unrealized Item Amount from to Rate from to Loss (Dollars in t housands) FHLB advance $ 10,000 2.70 % 2.70 % 1 Mth Libor 10-Apr-25 10-Apr-25 $ (719) State and political subdivisions 21,570 3.06 % 3.07 % 3 Mth Libor 1-Feb-27 1-May-28 (2,502) Commercial loans 17,229 4.10 % 5.74 % 1 Mth Libor +250 to 276 bp 13-Jun-25 1-Aug-26 — 30 day wholesale funding 65,000 1.94 % 2.51 % 1 Mth Libor 15-Feb-24 12-Jun-26 (1,415) 90 day wholesale funding 135,000 2.51 % 2.78 % 3 Mth Libor 11-Jan-24 27-Mar-24 (6,605) $ (11,241) |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE MEASUREMENT | |
Schedule of assets measured at fair value on recurring basis | Those assets as of September 30, 2020 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 $ — $ 22,394 $ — $ 22,394 State and political subdivisions — 79,621 — 79,621 Mortgage-backed securities - U.S. Government agencies — 236,566 — 236,566 Corporate bonds — 81,783 — 81,783 Equity security - FHLMC preferred stock 51 — — 51 Total $ 51 $ 420,364 $ — $ 420,415 Liabilities: Interest rate swap contracts $ — $ 20,960 $ — $ 20,960 Total $ — $ 20,960 $ — $ 20,960 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 | Summary of Non-Recurring Fair Value Measurements At September 30, 2020 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 13,037 $ 13,037 Other real estate owned — — — — Total $ — $ — $ 13,037 $ 13,037 At September 30, 2019 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ — $ — $ 15,542 $ 15,542 Other 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 | The following tables provide information describing the valuation processes used to determine nonrecurring fair value measurements categorized within level 3 of the fair value hierarchy: At September 30, 2020 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Impaired loans $ 13,037 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 6% to 9% discount / 7% Other real estate owned $ — 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% Other 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 September 30, 2020 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Investment and mortgage-backed securities held to maturity $ 22,860 $ 24,330 $ — $ 24,330 $ — Loans receivable, net 588,300 593,768 — — 593,768 Liabilities: Certificates of deposit 269,610 278,224 — — 278,224 Advances from FHLB -long-term 260,253 274,172 — — 274,172 Fair Value Measurements at Carrying Fair September 30, 2019 Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Investment and mortgage-backed securities held to maturity $ 68,635 $ 69,507 $ — $ 69,507 $ — Loans receivable, net 585,456 585,476 — — 585,476 Liabilities: Certificates of deposit 513,183 529,099 — — 529,099 Advances from FHLB -long-term 286,904 293,839 — — 293,839 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of goodwill and intangible assets are related to the acquisition of Polonia Bancorp | Balance Balance October 1, Additions/ September 30, Amortization 2019 Adjustments Amortization 2020 Period (Dollars in Thousands) Goodwill $ 6,102 $ — $ — $ 6,102 Core deposit intangible 448 — (108) 340 10 years $ 6,550 $ — $ (108) $ 6,442 |
Schedule of future fiscal periods amortization expense for core deposit intangible | (In Thousands) 2021 $ 93 2022 78 2023 64 2024 49 2025 34 Thereafter 22 $ 340 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
LEASES [Abstract] | |
Schedule of information related to operating leases | The following table summarizes other information related to our operating leases: September 30, 2020 Weighted-average remaining lease term - operating leases in years 7.25 Weighted-average discount rate - operating leases 2.0 % |
Schedule of aggregate lease maturities and obligations | The following table presents aggregate lease (Dollars in Thousands) 2021 $ 210 2022 213 2023 216 2024 220 2025 231 2025 and thereafter 416 Total lease payments 1,506 Less: interest 103 Present value of lease liabilities $ 1,403 |
PRUDENTIAL BANCORP, INC. (PAR_2
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) | |
Schedule of statement of financial condition | STATEMENT OF FINANCIAL CONDITION September 30, 2020 2019 (Dollars in Thousands) Assets: Cash $ 955 $ 1,004 Investment in Bank 126,684 137,238 Other assets 1,478 1,369 Total assets $ 129,117 $ 139,611 Stockholders' equity: Preferred stock $ — $ — Common stock 108 108 Additional paid-in-capital 118,270 118,384 Treasury stock (39,207) (29,698) Retained earnings 52,889 49,625 Accumulated other comprehensive (loss) income (2,943) 1,192 Total stockholders' equity $ 129,117 $ 139,611 |
Schedule of income statement | STATEMENT OF OPERATIONS For the year ended September 30, 2020 2019 2018 (Dollars in Thousands) Interest on ESOP loan $ — $ — $ 59 Equity in the earnings of the Bank 9,959 9,954 7,465 Total income 9,959 9,954 7,524 Professional services 168 168 168 Other expense 344 369 362 Total expense 512 537 530 Income before income taxes 9,447 9,417 6,936 Income tax benefit (108) (113) (128) Net income $ 9,555 $ 9,530 $ 7,064 |
Schedule of cash flows | CASH FLOWS For the year ended September 30, 2020 2019 2018 (Dollars in Thousands) Operating activities: Net income $ 9,555 $ 9,530 $ 7,064 Other, net 52 (115) (108) Equity in the undistributed earnings of the Bank (9,959) (9,954) (7,465) Net cash used in operating activities (352) (539) (509) Financing activities: Purchase of treasury stock (10,481) (3,108) (2,548) Cash dividends paid (6,216) (5,784) (6,300) Dividends from the Bank 17,000 5,000 5,000 Net cash provided by (used in) financing activities 303 (3,892) (3,848) Net decrease in cash and cash equivalents (49) (4,431) (4,357) Cash and cash equivalents, beginning of year 1,004 5,435 9,792 Cash and cash equivalents, end of year $ 955 $ 1,004 $ 5,435 |
CONSOLIDATED QUARTERLY FINANC_2
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) | |
Schedule of unaudited quarterly financial information | September 30, 2020 September 30, 2019 1st 2nd 3rd 4th 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr (Dollars in Thousands, Except Per Share Data) Interest income $ 11,827 $ 11,010 $ 9,791 $ 9,599 $ 10,001 $ 11,134 $ 11,273 $ 11,631 Interest expense 5,484 5,222 4,486 4,233 3,986 4,811 5,058 5,434 Net interest income 6,343 5,788 5,305 5,366 6,015 6,323 6,215 6,197 Provision for loan losses 125 500 750 1,650 0 0 0 100 Net interest income after provision for loan losses 6,218 5,288 4,555 3,716 6,015 6,323 6,215 6,097 Non-interest income 832 2,668 3,762 841 380 542 1,187 985 Non-interest expense 4,021 4,460 3,996 4,248 3,992 4,146 4,190 3,696 Income before income tax expense 3,029 3,496 4,321 309 2,403 2,719 3,212 3,386 Income tax expense (benefit) 566 572 701 (239) 429 380 582 799 Net income $ 2,463 $ 2,924 $ 3,620 $ 548 $ 1,974 $ 2,339 $ 2,630 $ 2,587 Per share: Earnings per share - basic $ 0.28 $ 0.33 $ 0.44 $ 0.07 $ 0.22 $ 0.27 $ 0.30 $ 0.30 Earnings per share - diluted $ 0.28 $ 0.32 $ 0.44 $ 0.07 $ 0.22 $ 0.26 $ 0.29 $ 0.29 Dividends per share $ 0.07 $ 0.50 $ 0.07 $ 0.07 $ 0.05 $ 0.05 $ 0.50 $ 0.05 September 30, 2018 1st 2nd 3rd 4th Qtr Qtr Qtr Qtr (Dollars in Thousands, Except Per Share Data) Interest income $ 8,036 $ 8,355 $ 8,931 $ 9,529 Interest expense 1,900 2,127 2,709 3,401 Net interest income 6,136 6,228 6,222 6,128 Provision for loan losses 210 150 325 125 Net interest income after provision for loan losses 5,926 6,078 5,897 6,003 Non-interest income 415 567 985 533 Non-interest expense 4,043 3,869 3,770 3,957 Income before income tax expense 2,298 2,776 3,112 2,579 Income tax expense 2,264 619 676 142 Net income $ 34 $ 2,157 $ 2,436 $ 2,437 Per share: Earnings per share - basic $ — $ 0.24 $ 0.28 $ 0.27 Earnings per share - diluted $ — $ 0.24 $ 0.26 $ 0.26 Dividends per share $ 0.20 $ 0.05 $ 0.05 $ 0.40 |
NATURE OF OPERATIONS AND BASI_2
NATURE OF OPERATIONS AND BASIS OF PRESENTATION (Details) $ in Thousands | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) |
Nature Of Operations And Basis Of Presentation [Line Items] | ||
Assets | $ 1,223,353 | $ 1,289,434 |
Prudential Savings Bank | ||
Nature Of Operations And Basis Of Presentation [Line Items] | ||
Number of full service branch offices | item | 10 | |
PSB Delaware, Inc. ("PSB") | ||
Nature Of Operations And Basis Of Presentation [Line Items] | ||
Assets | $ 266,700 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 01, 2019 | |
Significant Accounting Policies [Line Items] | ||||
FDIC insured amount | $ 249,000 | |||
Purchase of stock in ACBB to support line of credit | $ 90,000 | |||
Line of credit | 12,500,000 | |||
Dividend payable | 0 | |||
Cash dividend paid | $ 6,200,000 | $ 5,800,000 | $ 6,300,000 | |
Common stock repurchased | 829,388 | |||
Average price per share of common stock | $ 12.65 | |||
Operating right-of-use assets | $ 1,300,000 | |||
Operating lease liabilities | 1,403,000 | |||
Retained earnings | $ 52,889,000 | $ 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 | |||
Office Properties | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 10-39 years | |||
Furniture and equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 1-7 years | |||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Period for certificates of deposit issued by FDIC insured banks | 1 year | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Period for certificates of deposit issued by FDIC insured banks | 5 years |
EARNINGS PER SHARE - Calculated
EARNINGS PER SHARE - Calculated basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings per share - basic | |||||||||||||||
Net income | $ 548 | $ 3,620 | $ 2,924 | $ 2,463 | $ 2,587 | $ 2,630 | $ 2,339 | $ 1,974 | $ 2,437 | $ 2,436 | $ 2,157 | $ 34 | $ 9,555 | $ 9,530 | $ 7,064 |
Weighted average common shares outstanding - basic | 8,538,006 | 8,777,794 | 8,855,938 | ||||||||||||
Effect of CSEs - basic | 0 | 0 | 0 | ||||||||||||
Adjusted weighted average common shares used in earnings per share computation - basic | 8,538,006 | 8,777,794 | 8,855,938 | ||||||||||||
Earnings per share - basic (in dollars per share) | $ 0.07 | $ 0.44 | $ 0.33 | $ 0.28 | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.22 | $ 0.27 | $ 0.28 | $ 0.24 | $ 1.12 | $ 1.09 | $ 0.80 | |
Earnings per share - diluted | |||||||||||||||
Net income | $ 548 | $ 3,620 | $ 2,924 | $ 2,463 | $ 2,587 | $ 2,630 | $ 2,339 | $ 1,974 | $ 2,437 | $ 2,436 | $ 2,157 | $ 34 | $ 9,555 | $ 9,530 | $ 7,064 |
Weighted average shares outstanding - diluted | 8,538,006 | 8,777,794 | 8,855,938 | ||||||||||||
Effect of CSEs - diluted | 24,470 | 158,083 | 204,175 | ||||||||||||
Adjusted weighted average shares used in earnings per share computation - diluted | 8,562,476 | 8,935,877 | 9,060,113 | ||||||||||||
Earnings per share - diluted (in dollars per share) | $ 0.07 | $ 0.44 | $ 0.32 | $ 0.28 | $ 0.29 | $ 0.29 | $ 0.26 | $ 0.22 | $ 0.26 | $ 0.26 | $ 0.24 | $ 1.12 | $ 1.07 | $ 0.78 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) - shares | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
EARNINGS PER SHARE | |||
Adjusted weighted average shares of common stock used in diluted earnings per share computation | 282,728 | 550,833 | 666,526 |
Adjusted weighted average shares of common stock having exercise prices less than the current market value and are considered anti-dilutive | 288,530 | 242,201 | 202,500 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in accumulated other comprehensive (loss) income by component net of tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 1,192 | ||
Ending Balance | (2,943) | $ 1,192 | |
Total accumulated other comprehensive income (loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 1,192 | (8,154) | $ (760) |
Other comprehensive (loss) income before reclassification | 599 | 10,206 | (6,698) |
Amount reclassified from accumulated other comprehensive income | (4,734) | (835) | (393) |
Reclassification for net gains recorded in net income | (25) | (303) | |
Ending Balance | (2,943) | 1,192 | (8,154) |
Unrealized gain (loss) on AFS securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 8,098 | (8,320) | (1,091) |
Other comprehensive (loss) income before reclassification | 7,221 | 17,278 | (7,171) |
Amount reclassified from accumulated other comprehensive income | (4,734) | (835) | 245 |
Reclassification for net gains recorded in net income | (25) | (303) | |
Ending Balance | 10,585 | 8,098 | (8,320) |
Unrealized gain (loss) on interest rate swaps | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (6,906) | 166 | 331 |
Other comprehensive (loss) income before reclassification | (6,622) | (7,072) | 473 |
Amount reclassified from accumulated other comprehensive income | 0 | 0 | (638) |
Reclassification for net gains recorded in net income | 0 | 0 | |
Ending Balance | $ (13,528) | $ (6,906) | $ 166 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Significant amounts reclassified out of each component of accumulated other comprehensive (loss) income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Unrealized gains on available for sale securities | |||
Unrealized gain (losses) | $ 5,993 | $ 1,057 | $ (310) |
Amount reclassified from accumulated other comprehensive (loss) income | |||
Unrealized gains on available for sale securities | |||
Unrealized gain (losses) | 5,993 | 1,057 | 498 |
Income taxes | (1,259) | (222) | (105) |
Total | 4,734 | 835 | 393 |
Unrealized gain (loss) on AFS securities | |||
Unrealized gains on available for sale securities | |||
Total | (4,734) | (835) | 245 |
Unrealized gain (loss) on AFS securities | Amount reclassified from accumulated other comprehensive (loss) income | |||
Unrealized gains on available for sale securities | |||
Unrealized gain (losses) | 5,993 | 1,057 | (310) |
Income taxes | (1,259) | (222) | 65 |
Total | 4,734 | 835 | (245) |
Unrealized gain (loss) on interest rate swaps | |||
Unrealized gains on available for sale securities | |||
Total | 0 | 0 | (638) |
Unrealized gain (loss) on interest rate swaps | Amount reclassified from accumulated other comprehensive (loss) income | |||
Unrealized gains on available for sale securities | |||
Unrealized gain (losses) | 0 | 0 | 808 |
Income taxes | 0 | 0 | (170) |
Total | $ 0 | $ 0 | $ 638 |
INVESTMENT AND MORTGAGE-BACKE_3
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of investment and mortgage-backed securities, with gross unrealized gains and losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Securities Available for Sale: | ||
Fair Value | $ 420,364 | $ 512,822 |
U.S. Government and agency obligations | ||
Securities Available for Sale: | ||
Amortized Cost | 22,241 | 24,960 |
Gross Unrealized Gains | 153 | 3 |
Gross Unrealized Losses | (98) | |
Fair Value | 22,394 | 24,865 |
State and political subdivisions | ||
Securities Available for Sale: | ||
Amortized Cost | 79,099 | 47,909 |
Gross Unrealized Gains | 1,940 | 484 |
Gross Unrealized Losses | (1,418) | (747) |
Fair Value | 79,621 | 47,646 |
Mortgage-backed securities - US government agencies | ||
Securities Available for Sale: | ||
Amortized Cost | 226,863 | 362,342 |
Gross Unrealized Gains | 9,774 | 8,836 |
Gross Unrealized Losses | (71) | (406) |
Fair Value | 236,566 | 370,772 |
Corporate debt securities | ||
Securities Available for Sale: | ||
Amortized Cost | 78,764 | 67,360 |
Gross Unrealized Gains | 3,564 | 2,217 |
Gross Unrealized Losses | (545) | (38) |
Fair Value | 81,783 | 69,539 |
Total debt securities available for sale | ||
Securities Available for Sale: | ||
Amortized Cost | 406,967 | 502,571 |
Gross Unrealized Gains | 15,431 | 11,540 |
Gross Unrealized Losses | (2,034) | (1,289) |
Fair Value | $ 420,364 | $ 512,822 |
INVESTMENT AND MORTGAGE-BACKE_4
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of investment and mortgage-backed securities, with gross unrealized gains and losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Securities Held to Maturity: | ||
Amortized Cost | $ 22,860 | $ 68,635 |
Gross Unrealized Gains | 1,470 | 1,064 |
Gross unrealized losses | (192) | |
Fair value | 24,330 | 69,507 |
U.S. Government and agency obligations | ||
Securities Held to Maturity: | ||
Amortized Cost | 1,000 | 43,349 |
Gross Unrealized Gains | 236 | 181 |
Gross unrealized losses | (188) | |
Fair value | 1,236 | 43,342 |
Mortgage-backed securities - US government agencies | ||
Securities Held to Maturity: | ||
Amortized Cost | 3,784 | 4,812 |
Gross Unrealized Gains | 309 | 238 |
Gross unrealized losses | (4) | |
Fair value | 4,093 | 5,046 |
State and political subdivisions | ||
Securities Held to Maturity: | ||
Amortized Cost | 18,076 | 20,474 |
Gross Unrealized Gains | 925 | 645 |
Gross unrealized losses | 0 | |
Fair value | $ 19,001 | $ 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 ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | $ (737,000) | $ (106,000) |
Less than 12 months - Fair value | 37,232,000 | 59,933,000 |
More than 12 months - Gross Unrealized Losses | (1,297,000) | (1,183,000) |
More than 12 months - Fair value | 25,094,000 | 67,720,000 |
Gross Unrealized Losses - Total | (2,034,000) | (1,289,000) |
Fair Value - Total | 62,326,000 | 127,653,000 |
U.S. Government and agency obligations | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (3,000) | |
Less than 12 months - Fair value | 6,997,000 | |
More than 12 months - Gross Unrealized Losses | (95,000) | |
More than 12 months - Fair value | 3,866,000 | |
Gross Unrealized Losses - Total | (98,000) | |
Fair Value - Total | 10,863,000 | |
State and political subdivisions | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (126,000) | (4,000) |
Less than 12 months - Fair value | 10,735,000 | 890,000 |
More than 12 months - Gross Unrealized Losses | (1,292,000) | (743,000) |
More than 12 months - Fair value | 24,510,000 | 23,784,000 |
Gross Unrealized Losses - Total | (1,418,000) | (747,000) |
Fair Value - Total | 35,245,000 | 24,674,000 |
Mortgage-backed securities - US government agencies | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (66,000) | (86,000) |
Less than 12 months - Fair value | 10,025,000 | 50,057,000 |
More than 12 months - Gross Unrealized Losses | (5,000) | (320,000) |
More than 12 months - Fair value | 584,000 | 37,056,000 |
Gross Unrealized Losses - Total | (71,000) | (406,000) |
Fair Value - Total | 10,609,000 | 87,113,000 |
Corporate debt securities | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (545,000) | (13,000) |
Less than 12 months - Fair value | 16,472,000 | 1,989,000 |
More than 12 months - Gross Unrealized Losses | (25,000) | |
More than 12 months - Fair value | 3,014,000 | |
Gross Unrealized Losses - Total | (545,000) | (38,000) |
Fair Value - Total | $ 16,472,000 | $ 5,003,000 |
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) $ in Thousands | Sep. 30, 2019USD ($) |
Securities Held to Maturity: | |
Less than 12 months - Gross Unrealized Losses | $ (192) |
Less than 12 Months, Fair Value | 15,605 |
Total - Gross Unrealized Losses | (192) |
Total - Fair Value | 15,605 |
U.S. Government and agency obligations | |
Securities Held to Maturity: | |
Less than 12 months - Gross Unrealized Losses | (188) |
Less than 12 Months, Fair Value | 14,811 |
More than 12 months - Gross Unrealized Losses | 0 |
12 Months or More, Fair Value | 0 |
Total - Gross Unrealized Losses | (188) |
Total - Fair Value | 14,811 |
Mortgage-backed securities - US government agencies | |
Securities Held to Maturity: | |
Less than 12 months - Gross Unrealized Losses | (4) |
Less than 12 Months, Fair Value | 794 |
Total - Gross Unrealized Losses | (4) |
Total - Fair Value | $ 794 |
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) $ in Thousands | Sep. 30, 2019USD ($) |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | |
Less than 12 months - Gross Unrealized Losses | $ (298) |
Fair Value, Less than 12 Months | 75,538 |
More than 12 months - Gross Unrealized Losses | (1,183) |
Fair Value, 12 Months or More | 67,720 |
Gross Unrealized Losses -Total | (1,481) |
Fair Value - Total | $ 143,258 |
INVESTMENT AND MORTGAGE-BACKE_8
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of debt securities, by contractual maturity (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Available for Sale, Amortized Cost | |
Due after one through five years | $ 28,495 |
Due after five through ten years | 51,454 |
Due after ten years | 100,155 |
Total | 180,104 |
Available for Sale, Fair Value | |
Due after one through five years | 29,529 |
Due after five through ten years | 53,546 |
Due after ten years | 100,723 |
Total | $ 183,798 |
INVESTMENT AND MORTGAGE-BACKE_9
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of debt securities, by contractual maturity (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Held to Maturity - Amortized Cost | |
Due after one through five years | $ 5,739 |
Due after five through ten years | 8,313 |
Due after ten years | 5,024 |
Total | 19,076 |
Held to Maturity - Fair Value | |
Due after one through five years | 6,213 |
Due after five through ten years | 8,727 |
Due after ten years | 5,297 |
Total | $ 20,237 |
INVESTMENT AND MORTGAGE-BACK_10
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Additional Information (Details) | 12 Months Ended | ||
Sep. 30, 2020USD ($)security | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Marketable Securities [Line Items] | |||
Securities with a fair value in safekeeping account at the FHLB | $ 197,500,000 | ||
Aggregate Amount | 737,000 | $ 106,000 | |
Gross realized gains on investments and mortgage-backed securities | 6,100,000 | 1,300,000 | $ 0 |
Gross realized losses on investments and mortgage-backed securities | 68,000 | 280,000 | 376,000 |
Gain (loss) on equity securities | (44,000) | 58,000 | |
Proceeds from sale of investment and mortgage-backed securities | 142,055,000 | 75,639,000 | $ 11,052,000 |
Required to hold securities for its borrowings | 93,000,000 | ||
Excess securities not restricted and could be sold or transferred | 104,500,000 | ||
Gross unrealized loss | $ 2,034,000 | 1,289,000 | |
U.S. Government and agency obligations | |||
Marketable Securities [Line Items] | |||
Number of debt securities | security | 0 | ||
Aggregate Amount | 3,000 | ||
Gross unrealized loss | 98,000 | ||
Mortgage-backed securities - US government agencies | |||
Marketable Securities [Line Items] | |||
Number of debt securities | security | 5 | ||
Percentage of reduction in amortized cost of debt securities | 0.00% | ||
Aggregate Amount | $ 66,000 | 86,000 | |
Gross unrealized loss | $ 71,000 | 406,000 | |
Corporate debt securities | |||
Marketable Securities [Line Items] | |||
Number of debt securities | security | 5 | ||
Percentage of reduction in amortized cost of debt securities | 0.70% | ||
Aggregate Amount | $ 545,000 | 13,000 | |
Gross unrealized loss | $ 545,000 | 38,000 | |
State and political subdivisions | |||
Marketable Securities [Line Items] | |||
Number of debt securities | security | 7 | ||
Percentage of reduction in amortized cost of debt securities | 1.80% | ||
Aggregate Amount | $ 126,000 | 4,000 | |
Gross unrealized loss | $ 1,418,000 | $ 747,000 |
LOANS RECEIVABLE (Details)
LOANS RECEIVABLE (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 685,259 | $ 708,233 | ||
Undisbursed portion of loans-in-process | (86,862) | (114,528) | ||
Deferred loan fees | (1,794) | (2,856) | ||
Allowance for loan losses | (8,303) | (5,393) | $ (5,167) | $ (4,466) |
Net loans | 588,300 | 585,456 | ||
One-to-four family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 233,872 | 268,780 | ||
Allowance for loan losses | (1,877) | (1,002) | (1,325) | (1,241) |
Multi-family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 31,100 | 30,582 | ||
Allowance for loan losses | (460) | (315) | (347) | (205) |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 139,943 | 128,521 | ||
Allowance for loan losses | (1,989) | (1,257) | (1,154) | (1,201) |
Construction and land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 260,648 | 253,368 | ||
Allowance for loan losses | (2,888) | (2,034) | (1,554) | (1,358) |
Commercial business | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 12,916 | 19,630 | ||
Allowance for loan losses | (194) | (206) | (187) | (4) |
Loans to financial institutions | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 6,000 | 6,000 | ||
Allowance for loan losses | (89) | (63) | (64) | 0 |
Leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 176 | 518 | ||
Allowance for loan losses | (3) | (5) | (18) | (23) |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 604 | 834 | ||
Allowance for loan losses | $ (6) | $ (13) | $ (17) | $ (24) |
LOANS RECEIVABLE - Summary of l
LOANS RECEIVABLE - Summary of loans individually and collectively evaluated for impairment by loan segment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Loans: | ||||
Individually evaluated for impairment | $ 13,037 | $ 15,542 | ||
Collectively evaluated for impairment | 672,222 | 692,691 | ||
Total loans | 685,259 | 708,233 | ||
Collectively evaluated for impairment | 8,303 | 5,393 | $ 5,167 | |
Total ending allowance balance | 8,303 | 5,393 | 5,167 | $ 4,466 |
One-to-four family residential | ||||
Loans: | ||||
Individually evaluated for impairment | 3,095 | 4,827 | ||
Collectively evaluated for impairment | 230,777 | 263,953 | ||
Total loans | 233,872 | 268,780 | ||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 1,877 | 1,002 | 1,325 | |
Total ending allowance balance | 1,877 | 1,002 | 1,325 | 1,241 |
Multi-family residential | ||||
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 31,100 | 30,582 | ||
Total loans | 31,100 | 30,582 | ||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 460 | 315 | 347 | |
Total ending allowance balance | 460 | 315 | 347 | 205 |
Commercial real estate | ||||
Loans: | ||||
Individually evaluated for impairment | 1,417 | 1,965 | ||
Collectively evaluated for impairment | 138,526 | 126,556 | ||
Total loans | 139,943 | 128,521 | ||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 1,989 | 1,257 | 1,154 | |
Total ending allowance balance | 1,989 | 1,257 | 1,154 | 1,201 |
Construction and land development | ||||
Loans: | ||||
Individually evaluated for impairment | 8,525 | 8,750 | ||
Collectively evaluated for impairment | 252,123 | 244,618 | ||
Total loans | 260,648 | 253,368 | ||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 2,888 | 2,034 | 1,554 | |
Total ending allowance balance | 2,888 | 2,034 | 1,554 | 1,358 |
Commercial business | ||||
Loans: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 12,916 | 19,630 | ||
Total loans | 12,916 | 19,630 | ||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 194 | 206 | 187 | |
Total ending allowance balance | 194 | 206 | 187 | 4 |
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 | ||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 89 | 63 | 64 | |
Total ending allowance balance | 89 | 63 | 64 | 0 |
Leases | ||||
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 176 | 518 | ||
Total loans | 176 | 518 | ||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 3 | 5 | 18 | |
Total ending allowance balance | 3 | 5 | 18 | 23 |
Consumer | ||||
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 604 | 834 | ||
Total loans | 604 | 834 | ||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 6 | 13 | 17 | |
Total ending allowance balance | 6 | 13 | 17 | 24 |
Unallocated | ||||
Loans: | ||||
Individually evaluated for impairment | 0 | |||
Collectively evaluated for impairment | 797 | 498 | 501 | |
Total ending allowance balance | $ 797 | $ 498 | $ 501 | $ 410 |
LOANS RECEIVABLE - Impaired loa
LOANS RECEIVABLE - Impaired loans by class, segregated by those for which specific allowance was required and those for which specific allowance was not necessary (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
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 | 13,037 | 15,542 |
Total Impaired Loans - Recorded Investment | 13,037 | 15,542 |
Total impaired loans - Unpaid Principal Balance | 15,988 | 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 | 3,095 | 4,827 |
Total Impaired Loans - Recorded Investment | 3,095 | 4,827 |
Total impaired loans - Unpaid Principal Balance | 3,482 | 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 | 1,417 | 1,965 |
Total Impaired Loans - Recorded Investment | 1,417 | 1,965 |
Total impaired loans - Unpaid Principal Balance | 1,600 | 2,125 |
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 | 8,525 | 8,750 |
Total Impaired Loans - Recorded Investment | 8,525 | 8,750 |
Total impaired loans - Unpaid Principal Balance | $ 10,906 | $ 11,131 |
LOANS RECEIVABLE - Average reco
LOANS RECEIVABLE - Average recorded investment in impaired loans and related interest income recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | $ 14,140 | $ 15,720 | $ 17,347 |
Income Recognized on Accrual Basis | 13 | 123 | 85 |
Income Recognized on Cash Basis | 27 | 26 | 66 |
One-to-four family residential | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 3,825 | 4,685 | 5,741 |
Income Recognized on Accrual Basis | 13 | 77 | 24 |
Income Recognized on Cash Basis | 26 | 22 | 59 |
Multi-family residential | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 56 | 145 | 306 |
Income Recognized on Accrual Basis | 0 | 10 | 21 |
Income Recognized on Cash Basis | 0 | 0 | |
Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 1,549 | 2,139 | 2,557 |
Income Recognized on Accrual Basis | 0 | 36 | 40 |
Income Recognized on Cash Basis | 1 | 4 | 7 |
Construction and land development | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 8,685 | $ 8,751 | 8,743 |
Income Recognized on Accrual Basis | 0 | 0 | |
Income Recognized on Cash Basis | 0 | $ 0 | |
Commercial business | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 2 | ||
Income Recognized on Accrual Basis | 0 | ||
Income Recognized on Cash Basis | 0 | ||
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 24 | ||
Income Recognized on Accrual Basis | 0 | ||
Income Recognized on Cash Basis | $ 0 |
LOANS RECEIVABLE - Summary of c
LOANS RECEIVABLE - Summary of classes of loan portfolio in which formal risk weighting system is utilized (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 685,259 | $ 708,233 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 233,872 | 268,780 |
Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 31,100 | 30,582 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 139,943 | 128,521 |
Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 260,648 | 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 | 12,916 | 19,630 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 604 | 834 |
Risk Rating System | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 684,479 | 706,881 |
Risk Rating System | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 233,872 | 268,780 |
Risk Rating System | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 31,100 | 30,582 |
Risk Rating System | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 139,943 | 128,521 |
Risk Rating System | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 260,648 | 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 | 12,916 | 19,630 |
Risk Rating System | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 660,027 | |
Risk Rating System | Pass | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 229,361 | |
Risk Rating System | Pass | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 31,100 | |
Risk Rating System | Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 128,527 | |
Risk Rating System | Pass | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 252,123 | |
Risk Rating System | Pass | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,000 | |
Risk Rating System | Pass | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 12,916 | |
Risk Rating System | Special Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 685,832 | |
Risk Rating System | Special Pass | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 262,164 | |
Risk Rating System | Special Pass | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 30,582 | |
Risk Rating System | Special Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 122,838 | |
Risk Rating System | Special Pass | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 244,618 | |
Risk Rating System | Special Pass | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,000 | |
Risk Rating System | Special Pass | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 19,630 | |
Risk Rating System | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 11,415 | |
Risk Rating System | Special Mention | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,416 | |
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 | 9,999 | |
Risk Rating System | Special Mention | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Special Mention | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Special Mention | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Total Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,507 | |
Risk Rating System | Total Mention | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,789 | |
Risk Rating System | Total Mention | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Total Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,718 | |
Risk Rating System | Total Mention | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Total Mention | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Total Mention | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | |
Risk Rating System | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 13,037 | 15,542 |
Risk Rating System | Substandard | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,095 | 4,827 |
Risk Rating System | Substandard | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,417 | 1,965 |
Risk Rating System | Substandard | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,525 | 8,750 |
Risk Rating System | Substandard | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Substandard | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | Loans to financial institutions | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Risk Rating System | Doubtful | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 0 | $ 0 |
LOANS RECEIVABLE - Loans in whi
LOANS RECEIVABLE - Loans in which formal risk rating system is not utilized, but loans are segregated between performing and non-performing based primarily on delinquency status (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 685,259 | $ 708,233 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 233,872 | 268,780 |
Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 176 | 518 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 604 | 834 |
Non Risk Rating System | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 780 | 1,352 |
Non Risk Rating System | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 176 | 518 |
Non Risk Rating System | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 604 | 834 |
Non Risk Rating System | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 780 | 1,352 |
Non Risk Rating System | Performing | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 176 | 518 |
Non Risk Rating System | Performing | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 604 | 834 |
Non Risk Rating System | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non Risk Rating System | Nonperforming | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 0 | 0 |
Non Risk Rating System | Nonperforming | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 0 | $ 0 |
LOANS RECEIVABLE - Loan categor
LOANS RECEIVABLE - Loan categories of loan portfolio summarized by aging categories of performing loans and nonaccrual loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 670,340 | $ 693,975 |
Past Due | 14,919 | 14,258 |
Total Loans | 685,259 | 708,233 |
Non- Accrual | 13,037 | 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 | 2,824 | 845 |
90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 12,095 | 13,413 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 231,196 | 264,784 |
Past Due | 2,676 | 3,996 |
Total Loans | 233,872 | 268,780 |
Non- Accrual | 3,095 | 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 | 523 | 750 |
One-to-four family residential | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,153 | 3,246 |
Multi-family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 31,100 | 30,582 |
Past Due | 0 | 0 |
Total Loans | 31,100 | 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 | 136,225 | 127,104 |
Past Due | 3,718 | 1,417 |
Total Loans | 139,943 | 128,521 |
Non- Accrual | 1,417 | 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 | 2,301 | 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 | 252,123 | 244,618 |
Past Due | 8,525 | 8,750 |
Total Loans | 260,648 | 253,368 |
Non- Accrual | 8,525 | 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 | 8,525 | 8,750 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 12,916 | 19,630 |
Past Due | 0 | 0 |
Total Loans | 12,916 | 19,630 |
Non- Accrual | 0 | 0 |
90 Days+ Past Due and Accruing | 0 | 0 |
Commercial business | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial business | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Loans to financial institutions | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 6,000 | 6,000 |
Past Due | 0 | 0 |
Total Loans | 6,000 | 6,000 |
Non- Accrual | 0 | 0 |
90 Days+ Past Due and Accruing | 0 | 0 |
Loans to financial institutions | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Loans to financial institutions | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 176 | 518 |
Past Due | 0 | 0 |
Total Loans | 176 | 518 |
Non- Accrual | 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 | 604 | 739 |
Past Due | 0 | 95 |
Total Loans | 604 | 834 |
Non- Accrual | 0 | 0 |
90 Days+ Past Due and Accruing | 0 | 0 |
Consumer | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 95 |
Consumer | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
LOANS RECEIVABLE - Activity in
LOANS RECEIVABLE - Activity in allowance (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | $ 5,393,000 | $ 5,167,000 | $ 4,466,000 | $ 5,393,000 | $ 5,167,000 | $ 4,466,000 | |||||||||
Charge-offs | (144,000) | (38,000) | (137,000) | ||||||||||||
Recoveries | 29,000 | 164,000 | 28,000 | ||||||||||||
Provision | $ 1,650,000 | $ 750,000 | $ 500,000 | 125,000 | $ 100,000 | $ 0 | $ 0 | 0 | $ 125,000 | $ 325,000 | $ 150,000 | 210,000 | 3,025,000 | 100,000 | 810,000 |
ALLL balance | 8,303,000 | 5,393,000 | 5,167,000 | 8,303,000 | 5,393,000 | 5,167,000 | |||||||||
Collectively evaluated for impairment | 8,303,000 | 5,393,000 | 5,167,000 | 8,303,000 | 5,393,000 | 5,167,000 | |||||||||
One-to-four family residential | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 1,002,000 | 1,325,000 | 1,241,000 | 1,002,000 | 1,325,000 | 1,241,000 | |||||||||
Charge-offs | (3,000) | (7,000) | (114,000) | ||||||||||||
Recoveries | 14,000 | 164,000 | 28,000 | ||||||||||||
Provision | 864,000 | (480,000) | 170,000 | ||||||||||||
ALLL balance | 1,877,000 | 1,002,000 | 1,325,000 | 1,877,000 | 1,002,000 | 1,325,000 | |||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||||
Collectively evaluated for impairment | 1,877,000 | 1,002,000 | 1,325,000 | 1,877,000 | 1,002,000 | 1,325,000 | |||||||||
Multi-family residential | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 315,000 | 347,000 | 205,000 | 315,000 | 347,000 | 205,000 | |||||||||
Charge-offs | 0 | ||||||||||||||
Recoveries | 0 | ||||||||||||||
Provision | 145,000 | (32,000) | 142,000 | ||||||||||||
ALLL balance | 460,000 | 315,000 | 347,000 | 460,000 | 315,000 | 347,000 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||||||
Collectively evaluated for impairment | 460,000 | 315,000 | 347,000 | 460,000 | 315,000 | 347,000 | |||||||||
Commercial real estate | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 1,257,000 | 1,154,000 | 1,201,000 | 1,257,000 | 1,154,000 | 1,201,000 | |||||||||
Charge-offs | 0 | ||||||||||||||
Recoveries | 0 | ||||||||||||||
Provision | 732,000 | 103,000 | (47,000) | ||||||||||||
ALLL balance | 1,989,000 | 1,257,000 | 1,154,000 | 1,989,000 | 1,257,000 | 1,154,000 | |||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||||
Collectively evaluated for impairment | 1,989,000 | 1,257,000 | 1,154,000 | 1,989,000 | 1,257,000 | 1,154,000 | |||||||||
Construction and land development | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 2,034,000 | 1,554,000 | 1,358,000 | 2,034,000 | 1,554,000 | 1,358,000 | |||||||||
Charge-offs | (12,000) | ||||||||||||||
Recoveries | 0 | ||||||||||||||
Provision | 854,000 | 480,000 | 208,000 | ||||||||||||
ALLL balance | 2,888,000 | 2,034,000 | 1,554,000 | 2,888,000 | 2,034,000 | 1,554,000 | |||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||||
Collectively evaluated for impairment | 2,888,000 | 2,034,000 | 1,554,000 | 2,888,000 | 2,034,000 | 1,554,000 | |||||||||
Commercial business | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 206,000 | 187,000 | 4,000 | 206,000 | 187,000 | 4,000 | |||||||||
Charge-offs | (15,000) | 0 | |||||||||||||
Recoveries | 0 | ||||||||||||||
Provision | 3,000 | 19,000 | 183,000 | ||||||||||||
ALLL balance | 194,000 | 206,000 | 187,000 | 194,000 | 206,000 | 187,000 | |||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||||
Collectively evaluated for impairment | 194,000 | 206,000 | 187,000 | 194,000 | 206,000 | 187,000 | |||||||||
Loans to financial institutions | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 63,000 | 64,000 | 0 | 63,000 | 64,000 | 0 | |||||||||
Charge-offs | 0 | ||||||||||||||
Recoveries | 0 | ||||||||||||||
Provision | 26,000 | (1,000) | 64,000 | ||||||||||||
ALLL balance | 89,000 | 63,000 | 64,000 | 89,000 | 63,000 | 64,000 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Collectively evaluated for impairment | 89,000 | 63,000 | 64,000 | 89,000 | 63,000 | 64,000 | |||||||||
Leases | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 5,000 | 18,000 | 23,000 | 5,000 | 18,000 | 23,000 | |||||||||
Charge-offs | (31,000) | 0 | |||||||||||||
Recoveries | 9,000 | 0 | |||||||||||||
Provision | (11,000) | 18,000 | (5,000) | ||||||||||||
ALLL balance | 3,000 | 5,000 | 18,000 | 3,000 | 5,000 | 18,000 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Collectively evaluated for impairment | 3,000 | 5,000 | 18,000 | 3,000 | 5,000 | 18,000 | |||||||||
Consumer | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | 13,000 | 17,000 | 24,000 | 13,000 | 17,000 | 24,000 | |||||||||
Charge-offs | (126,000) | (11,000) | |||||||||||||
Recoveries | 6,000 | 0 | |||||||||||||
Provision | 113,000 | (4,000) | 4,000 | ||||||||||||
ALLL balance | 6,000 | 13,000 | 17,000 | 6,000 | 13,000 | 17,000 | |||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||||||
Collectively evaluated for impairment | 6,000 | 13,000 | 17,000 | 6,000 | 13,000 | 17,000 | |||||||||
Unallocated | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
ALLL balance | $ 498,000 | $ 501,000 | $ 410,000 | 498,000 | 501,000 | 410,000 | |||||||||
Provision | 299,000 | (3,000) | 91,000 | ||||||||||||
ALLL balance | 797,000 | 498,000 | 501,000 | 797,000 | 498,000 | 501,000 | |||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||||
Collectively evaluated for impairment | $ 797,000 | $ 498,000 | $ 501,000 | $ 797,000 | $ 498,000 | $ 501,000 |
LOANS RECEIVABLE - Additional I
LOANS RECEIVABLE - Additional Information 1 (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2020USD ($)loan | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Increase (decrease) from interest income on nonaccrual loans | $ 748,000 | $ 786,000 | $ 744,000 | ||||||||||||
Fair value of loans acquired net of discount | $ 160,800,000 | 160,800,000 | |||||||||||||
Discount on fair value of loans acquired | 4,600,000 | 4,600,000 | |||||||||||||
Discount remained | 2,500,000 | 2,500,000 | |||||||||||||
Provision for loan losses | 1,650,000 | $ 750,000 | $ 500,000 | $ 125,000 | $ 100,000 | $ 0 | $ 0 | $ 0 | $ 125,000 | $ 325,000 | $ 150,000 | $ 210,000 | 3,025,000 | 100,000 | 810,000 |
Non performing assets | $ 13,000,000 | $ 14,300,000 | $ 13,000,000 | $ 14,300,000 | |||||||||||
Percentage of nonperforming assets | 1.10% | 1.10% | |||||||||||||
Number of non-accrual loans | loan | 1 | ||||||||||||||
Number of loans receivables classified as troubled debt restructuring | loan | 4 | 4 | |||||||||||||
Amount of loans classified as troubled debt restructuring | $ 5,000,000 | $ 5,000,000 | |||||||||||||
Financing receivable | 415,000 | 415,000 | |||||||||||||
One-to-four family residential | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Provision for loan losses | 864,000 | $ (480,000) | 170,000 | ||||||||||||
Commercial real estate | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Provision for loan losses | 732,000 | 103,000 | (47,000) | ||||||||||||
Non performing assets | 1,400,000 | $ 1,400,000 | |||||||||||||
Number of non-accrual loans | loan | 4 | ||||||||||||||
One To Four Family Residential Real Estate Owned Properties [Member] | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Non performing assets | 3,100,000 | $ 3,100,000 | |||||||||||||
Number of non-accrual loans | loan | 28 | ||||||||||||||
Construction and land development | |||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||
Provision for loan losses | $ 854,000 | $ 480,000 | $ 208,000 | ||||||||||||
Non performing assets | $ 8,500,000 | $ 8,500,000 | |||||||||||||
Number of non-accrual loans | loan | 5 |
LOANS RECEIVABLE - Additional_2
LOANS RECEIVABLE - Additional Information 2 (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans default | loan | 3 | ||
Loans classified as troubled debt restructurings ("TDRs"), Recorded investment | $ 5,000 | ||
Amount of TDR loans, default | 10,400 | ||
Write-down amount of TDR loans | $ 1,900 | ||
Number of loans classified as troubled debt restructuring | loan | 4 | ||
Loans receivable, net | $ 588,300 | $ 585,456 | |
Allowance for Loan and Lease Losses, Write-offs | 144 | 38 | $ 137 |
Carrying amount | $ 685,259 | $ 708,233 | |
Residential real estate property | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans | loan | 14 | ||
Carrying amount | $ 1,000 | ||
Nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans classified as troubled debt restructurings ("TDRs"), Recorded investment | $ 4,600 |
OFFICE PROPERTIES AND EQUIPME_3
OFFICE PROPERTIES AND EQUIPMENT - Summary of office properties and equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 12,932 | $ 12,525 |
Accumulated depreciation | (5,803) | (5,319) |
Total office properties and equipment, net of accumulated depreciation | 7,129 | 7,206 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,437 | 1,437 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 7,449 | 7,449 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 4,046 | $ 3,639 |
OFFICE PROPERTIES AND EQUIPME_4
OFFICE PROPERTIES AND EQUIPMENT - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
OFFICE PROPERTIES AND EQUIPMENT | |||
Depreciation expense | $ 484,000 | $ 619,000 | $ 625,000 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Amount | ||
Non interest-bearing checking accounts | $ 30,002 | $ 16,949 |
Interest-bearing checking accounts | 135,797 | 58,647 |
Money market deposit accounts | 111,105 | 75,766 |
Passbook, club and statement savings | 224,435 | 80,899 |
Certificates maturing in six months or less | 125,165 | 294,343 |
Certificates maturing in more than six months | 144,445 | 218,840 |
Total deposits | $ 770,949 | $ 745,444 |
Percent | ||
Non interest-bearing checking accounts | 3.90% | 2.20% |
Interest-bearing checking accounts | 17.60% | 7.90% |
Money market deposit accounts | 14.40% | 10.20% |
Passbook, club and statement savings | 29.10% | 10.90% |
Certificates maturing in six months or less | 16.20% | 39.50% |
Certificates maturing in more than six months | 18.80% | 29.30% |
Total | 100.00% | 100.00% |
DEPOSITS - Summary of scheduled
DEPOSITS - Summary of scheduled maturities of certificate accounts (Details) $ in Thousands | Sep. 30, 2020USD ($) |
DEPOSITS [Abstract] | |
One year or less | $ 170,554 |
One through two years | 43,341 |
Two through three years | 30,389 |
Three through four years | 18,647 |
Four through five years | 6,679 |
Total | $ 269,610 |
DEPOSITS - Interest expense on
DEPOSITS - Interest expense on deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
DEPOSITS [Abstract] | |||
Checking and money market deposit accounts | $ 2,045 | $ 899 | $ 247 |
Passbook, club and statement savings accounts | 38 | 124 | 66 |
Certificate accounts | 8,819 | 12,137 | 7,073 |
Total | $ 10,902 | $ 13,160 | $ 7,386 |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
DEPOSITS [Abstract] | ||
Certificates of $250,000 and over | $ 76.6 | $ 182.8 |
Brokered deposits | $ 63.4 | $ 153.1 |
ADVANCES FROM FEDERAL HOME LO_5
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Balance at period end | $ 25,000 | $ 90,000 | |
Federal Home Loan Bank of Pittsburgh [Member] | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Average balance outstanding | 66,735 | 31,158 | $ 18,933 |
Maximum month-end balance | 115,000 | 90,000 | 30,200 |
Balance at period end | $ 25,000 | $ 90,000 | $ 10,000 |
Weight-average rate during the period | 1.58% | 2.53% | 1.81% |
Weight-average rate at period end | 0.39% | 2.32% | 2.31% |
ADVANCES FROM FEDERAL HOME LO_6
ADVANCES FROM FEDERAL HOME LOAN BANK - SHORT TERM - Additional Information (Details) $ in Thousands | Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($) |
Short-term Debt [Line Items] | |||
Advances from Federal Home Loan Bank - Short Term | $ 25,000 | $ 90,000 | |
Unsecured borrowing facilities with ACBB and PNC | $ 12,500 | $ 10,000 | |
Interest rate swap contract one | |||
Short-term Debt [Line Items] | |||
Number of 30 day FHLB advances | loan | 7 | ||
Number of 90 day FHLB advances | loan | 1 | ||
Advances from Federal Home Loan Bank - Short Term | $ 25,000 | $ 90,000 | |
Federal Home Loan Bank of Pittsburgh [Member] | |||
Short-term Debt [Line Items] | |||
Advances from Federal Home Loan Bank - Short Term | $ 25,000 | $ 90,000 | $ 10,000 |
ADVANCES FROM FEDERAL HOME LO_7
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 260,253 | $ 286,904 |
Long-term | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Stated interest rate range | 2.57% | |
Amount | $ 260,253 | 286,904 |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 19 to 30 Sep 20 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Date of maturity from | 1‑Oct‑19 | |
Date of maturity to | 30‑Sep‑20 | |
Amount | $ 0 | 236 |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 20 to 30 Sep 21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Date of maturity from | 1‑Oct‑20 | |
Date of maturity to | 30‑Sep‑21 | |
Amount | $ 5,179 | 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 | 2.77% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 21 to 30 Sep 22 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Date of maturity from | 1‑Oct‑21 | |
Date of maturity to | 30‑Sep‑22 | |
Amount | $ 5,523 | 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 | 2.84% | |
Long-term | Fixed Rate Amortizing Maturity from 1 Oct 22 to 30 Sep 23 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Date of maturity from | 1‑Oct‑22 | |
Date of maturity to | 30‑Sep‑23 | |
Amount | $ 5,265 | 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 | 2.89% | |
Long-term | Fixed Rate - Amortizing | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 15,967 | 30,250 |
Weighted average interest rate | 2.83% | |
Long-term | Fixed Rate Advances Maturity from 1 Oct 19 to 30 Sep 20 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Date of maturity from | 1‑Oct‑19 | |
Date of maturity to | 30‑Sep‑20 | |
Amount | $ 0 | 12,304 |
Long-term | Fixed Rate Advances Maturity from 1 Oct 20 to 30 Sep 21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Date of maturity from | 1‑Oct‑20 | |
Date of maturity to | 30‑Sep‑21 | |
Amount | $ 17,996 | 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] | ||
Date of maturity from | 1‑Oct‑21 | |
Date of maturity to | 30‑Sep‑22 | |
Amount | $ 63,293 | 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] | ||
Date of maturity from | 1‑Oct‑22 | |
Date of maturity to | 30‑Sep‑23 | |
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] | ||
Date of maturity from | 1‑Oct‑23 | |
Date of maturity to | 30‑Sep‑24 | |
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 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 244,286 | $ 256,654 |
Weighted average interest rate | 2.55% |
ADVANCES FROM FEDERAL HOME LO_8
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM - Summary of advances from the FHLB of Pittsburgh with coupon rates (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM | ||
2021 | $ 28,185 | |
2022 | 67,285 | |
2023 | 96,785 | |
2024 | 67,998 | |
Advances from Federal Home Loan Bank - Long Term | $ 260,253 | $ 286,904 |
Weighted Average Coupon Rate | ||
2021 | 2.44% | |
2022 | 2.32% | |
2023 | 2.51% | |
2024 | 2.88% | |
Weighted Average Coupon Rate | 2.57% |
ADVANCES FROM FEDERAL HOME LO_9
ADVANCES FROM FEDERAL HOME LOAN BANK - LONG TERM - Additional Information (Details) $ in Millions | Sep. 30, 2020USD ($) |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Weighted Average Coupon Rate | 2.57% |
Additional FHLB advances | $ 103.4 |
Minimum | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Weighted Average Coupon Rate | 1.42% |
Maximum | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Weighted Average Coupon Rate | 3.23% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Current: | |||||||||||
Federal expense | $ 1,952 | $ 2,133 | $ 2,429 | ||||||||
State expense | 93 | 205 | |||||||||
Total current taxes | 2,045 | 2,338 | 2,429 | ||||||||
Change in corporate tax rate | 0 | 0 | 1,756 | ||||||||
Deferred income tax benefit | (445) | (188) | (484) | ||||||||
Total income tax provision | $ (239) | $ 701 | $ 572 | $ 566 | $ 142 | $ 676 | $ 619 | $ 2,264 | $ 1,600 | $ 2,150 | $ 3,701 |
INCOME TAXES - Items that gave
INCOME TAXES - Items that gave rise to significant portions of deferred income taxes (Details) - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,071,000 | $ 1,488,000 |
Nonaccrual interest | 561,000 | 487,000 |
Accrued vacation | 16,000 | 7,000 |
Capital loss carryforward | 4,000 | 121,000 |
Split dollar life insurance | 9,000 | 9,000 |
Post-retirement benefits | 72,000 | 76,000 |
Realized loss on equity securities | 3,000 | |
Unrealized losses on interest rate swaps | 3,596,000 | 1,836,000 |
Deferred compensation | 781,000 | 809,000 |
Goodwill | 58,000 | 69,000 |
Other | 48,000 | 64,000 |
Employee benefit plans | 187,000 | 216,000 |
Total deferred tax assets | 7,406,000 | 5,182,000 |
Valuation allowance | 4,000 | 121,000 |
Total deferred tax assets, net of valuation allowance | 7,402,000 | 5,061,000 |
Deferred tax liabilities: | ||
Property | 137,000 | 141,000 |
Realized gain on equity securities | 19,000 | |
Unrealized gains on available for sale securities | 2,813,000 | 2,153,000 |
Purchase accounting adjustments | 321,000 | 215,000 |
Deferred loan fees | 229,000 | 175,000 |
Total deferred tax liabilities | 3,500,000 | 2,703,000 |
Net deferred tax assets | $ 3,902,000 | $ 2,358,000 |
INCOME TAXES - Income tax expen
INCOME TAXES - Income tax expense differs from that computed at the statutory federal corporate tax rate (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
INCOME TAXES | |||||||||||
Tax at statutory rate, amount | $ 2,343,000 | $ 2,453,000 | $ 2,611,000 | ||||||||
Adjustments resulting from: | |||||||||||
State tax expense | 93,000 | 162,000 | 0 | ||||||||
Change in corporate tax rate | 0 | 0 | 1,756,000 | ||||||||
Tax exempt income, amount | (537,000) | (313,000) | (77,000) | ||||||||
Capital gain from sale of securities, amount | (117,000) | 0 | 0 | ||||||||
Income from bank owned life insurance, amount | (138,000) | (135,000) | (155,000) | ||||||||
Employee benefit plans | (27,000) | (27,000) | (134,000) | ||||||||
Other, amount | (17,000) | 10,000 | (300,000) | ||||||||
Total income tax provision | $ (239,000) | $ 701,000 | $ 572,000 | $ 566,000 | $ 142,000 | $ 676,000 | $ 619,000 | $ 2,264,000 | $ 1,600,000 | $ 2,150,000 | $ 3,701,000 |
Tax at statutory rate, percentage of pretax income (Loss) | 21.00% | 21.00% | 24.30% | ||||||||
Adjustments resulting from: | |||||||||||
State tax expense, percentage of pretax income (Loss) | 0.80% | 1.30% | |||||||||
Change in corporate tax rate, percentage of pretax income (Loss) | 0.00% | 0.00% | 16.20% | ||||||||
Tax exempt income, percentage of pretax income (Loss) | (4.80%) | (2.70%) | (0.70%) | ||||||||
Capital gain from sale of securities, percentage of pretax income (Loss) | (1.00%) | 0.00% | 0.00% | ||||||||
Income from bank owned life insurance, percentage of pretax income (Loss) | (1.20%) | (1.10%) | (1.40%) | ||||||||
Employee benefit plans, percentage of pretax income (Loss) | (0.30%) | (0.20%) | (1.20%) | ||||||||
Other, percentage of pretax income (Loss) | (0.20%) | 0.10% | (2.90%) | ||||||||
Income tax expense, percentage of pretax income (Loss) | 14.30% | 18.40% | 34.30% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Line Items] | |||
Valuation allowance | $ (4,000) | $ (121,000) | |
Additional income tax expenses | $ 1,800,000 | ||
Tax at statutory rate | 21.00% | 21.00% | 24.30% |
Previous year | |||
Income Taxes [Line Items] | |||
Tax at statutory rate | 34.00% | ||
Current year | |||
Income Taxes [Line Items] | |||
Tax at statutory rate | 21.00% |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Prudential Bancorp, Inc of Pennsylvania | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Actual Amount, Tier 1 capital (to average assets) | $ 125,618 | $ 131,859 |
Actual Ratio, Tier 1 capital (to average assets) | 10.34% | 10.89% |
Actual Amount, Tier 1 Common (to risk-weighted assets) | $ 125,618 | $ 131,859 |
Actual Ratio, Tier 1 Common (to risk-weighted assets) | 17.21% | 18.43% |
Actual Amount, Tier 1 capital (to risk-weighted assets) | $ 125,618 | $ 131,859 |
Actual Ratio, Tier 1 capital (to risk-weighted assets) | 17.21% | 18.43% |
Actual Amount, Total capital (to risk-weighted assets) | $ 134,389 | $ 137,842 |
Actual Ratio, Total capital (to risk-weighted assets) | 18.41% | 19.27% |
Prudential Savings Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Actual Amount, Tier 1 capital (to average assets) | $ 123,185 | $ 129,486 |
Actual Amount, Required for Capital Adequacy Purposes Amount, Tier 1 capital (to average assets) | 46,867 | 49,386 |
Actual Amount, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount, Tier 1 capital (to average assets) | $ 58,584 | $ 61,732 |
Actual Ratio, Tier 1 capital (to average assets) | 10.51% | 10.49% |
Actual Ratio, Required for Capital Adequacy Purposes Ratio, Tier 1 capital (to average assets) | 4.00% | 4.00% |
Actual Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio, Tier 1 capital (to average assets) | 5.00% | 5.00% |
Actual Amount, Tier 1 Common (to risk-weighted assets) | $ 123,185 | $ 129,486 |
Actual Amount, Required for Capital Adequacy Purposes, Tier 1 Common (to risk-weighted assets) | 32,841 | 32,190 |
Actual Amount, To Be Well Capitalized Under Prompt Corrective Action Provisions, Tier 1 Common (to risk-weighted assets) | $ 47,437 | $ 46,497 |
Actual Ratio, Tier 1 Common (to risk-weighted assets) | 16.88% | 18.10% |
Actual Ratio, Required for Capital Adequacy Purposes, Tier 1 Common (to risk-weighted assets) | 4.50% | 4.50% |
Actual Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions, Tier 1 Common (to risk-weighted assets) | 6.50% | 6.50% |
Actual Amount, Tier 1 capital (to risk-weighted assets) | $ 123,185 | $ 129,486 |
Actual Amount, Required for Capital Adequacy Purposes Amount, Tier 1 capital (to risk-weighted assets) | 43,788 | 28,613 |
Actual Amount, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount, Tier 1 capital (to risk-weighted assets) | $ 58,384 | $ 42,920 |
Actual Ratio, Tier 1 capital (to risk-weighted assets) | 16.88% | 18.10% |
Actual Ratio, Required for Capital Adequacy Purposes Ratio, Tier 1 capital (to risk-weighted assets) | 6.00% | 6.00% |
Actual Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio, Tier 1 capital (to risk-weighted assets) | 8.00% | 8.00% |
Actual Amount, Total capital (to risk-weighted assets) | $ 131,956 | $ 135,469 |
Actual Amount, Required for Capital Adequacy Purposes Amount, Total capital (to risk-weighted assets) | 58,384 | 57,227 |
Actual Amount, To Be Well Capitalized Under Prompt Corrective Action Provisions Amount, Total capital (to risk-weighted assets) | $ 72,980 | $ 71,534 |
Actual Ratio, Total capital (to risk-weighted assets) | 18.08% | 18.94% |
Actual Ratio, Required for Capital Adequacy Purposes Ratio, Total capital (to risk-weighted assets) | 8.00% | 8.00% |
Actual Ratio, To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio, Total capital (to risk-weighted assets) | 10.00% | 10.00% |
EMPLOYEE BENEFITS - Multi-emplo
EMPLOYEE BENEFITS - Multi-employer defined benefit pension plan (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Multi-employer defined benefit pension plan | |||
Multiemployer Plans [Line Items] | |||
Expense relating to plan | $ 743,000 | $ 632,000 | $ 441,000 |
EMPLOYEE BENEFITS - Additional
EMPLOYEE BENEFITS - Additional information regarding the plan (Details) | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Multiemployer Plans [Line Items] | |
Plan Employer Identification Number | 46-2935427 |
Multi-employer defined benefit pension plan | Pentegra Defined Benefits Plan for Financial Institutions [Member] | |
Multiemployer Plans [Line Items] | |
Plan Employer Identification Number | 13-5645888 |
The Company's Contribution for the year ended September 30, 2019 | $ 743,000 |
Are Company's Contributions more than 5% of total contributions? | No |
Funded Status | 85.09% |
EMPLOYEE BENEFITS - Expense Rel
EMPLOYEE BENEFITS - Expense Relating to Plan (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pentegra Defined Benefits Plan for Financial Institutions [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Bank defined contribution plan, expense | $ 231,000 | $ 126,000 | $ 102,000 |
EMPLOYEE BENEFITS - 2008 RRP an
EMPLOYEE BENEFITS - 2008 RRP and 2014 SIP (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Aug. 31, 2016 | Feb. 28, 2015 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of vesting per year | 20.00% | ||||
Vesting period of awards granted | 5 years | ||||
2008 Recognition and Retention Plan ("2008 RRP") | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares purchased by RRP trust | 213,528 | ||||
Value of shares purchased in open market by RRP trust | $ 2.5 | ||||
Average price per share of common stock purchased in the open market | $ 11.49 | ||||
Number of shares granted | 8,209 | 7,473 | |||
2014 Stock Incentive Plan (the "2014 SIP") | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares granted | 18,291 | 17,128 | 3,027 | ||
2014 Stock Incentive Plan (the "2014 SIP") | Restricted stock awards or units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of shares awarded under the plan | 285,655 | ||||
Number of shares granted | 233,500 |
EMPLOYEE BENEFITS - Summary of
EMPLOYEE BENEFITS - Summary of non-vested stock award activity (Details) - 2008 Recognition and Retention Plan ("2008 RRP") - $ / shares | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Aug. 31, 2016 | Sep. 30, 2020 | |
Number of Shares | |||
Issued | 8,209 | 7,473 | |
Non-vested stock awards | |||
Number of Shares | |||
Non-vested stock awards at beginning of period | 68,980 | ||
Forfeited | (1,800) | ||
Vested | (44,124) | ||
Non-vested stock awards at the end of the period | 23,056 | ||
Weighted Average Grant Date Fair Value | |||
Nonvested stock awards at beginning of period | $ 15.05 | ||
Forfeited | 18.46 | ||
Vested | 13.49 | ||
Non-vested stock awards at the end of the period | $ 17.78 |
EMPLOYEE BENEFITS - Summary o_2
EMPLOYEE BENEFITS - Summary of status of stock options under Option Plan and 2014 SIP (Details) - Stock Options - $ / shares | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | May 31, 2017 | Aug. 31, 2016 | Sep. 30, 2020 | |
2008 Stock Option Plan (the "2008 Option Plan") | ||||
Number of Shares | ||||
Granted | 18,235 | 283 | 18,866 | |
Option Plan and 2014 SIP | ||||
Number of Shares | ||||
Options outstanding at beginning of period | 793,034 | |||
Granted | 12,500 | |||
Exercised | (45,276) | |||
Forfeited | (189,000) | |||
Outstanding at the end of the period | 571,258 | |||
Exercisable at the end of the period | 397,465 | |||
Weighted Average Exercise Price | ||||
Options outstanding at beginning of period | $ 13.86 | |||
Granted | 10 | |||
Exercised | 8.39 | |||
Forfeited | 11.97 | |||
Outstanding at the end of the period | 14.58 | |||
Exercisable at the end of the period | $ 13.45 |
EMPLOYEE BENEFITS - Stock Optio
EMPLOYEE BENEFITS - Stock Options - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2019 | Mar. 31, 2018 | May 31, 2017 | Mar. 31, 2017 | Aug. 31, 2016 | Feb. 28, 2015 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period of options | 5 years | ||||||||
Stock Options | 2008 Stock Option Plan (the "2008 Option Plan") | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage of vesting and exercisable per year | 20.00% | ||||||||
Vesting period of options | 5 years | ||||||||
Exercisable period of options after grant date | 10 years | ||||||||
Number of common stock available for issuance | 533,808 | ||||||||
Weighted average remaining contractual term for options outstanding | 6 years 1 month 6 days | ||||||||
Unrecognized compensation expense for options | $ 423,000,000,000 | ||||||||
Weighted average period for recognition of nonvested awards | 2 years 9 months 18 days | ||||||||
Number of options awarded | 18,235 | 283 | 18,866 | ||||||
Stock Options | 2014 Stock Incentive Plan (the "2014 SIP") | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of common stock available for issuance | 714,145 | ||||||||
Number of options awarded | 39,702 | 159,265 | 25,000 | 22,828 | 8,634 | 605,000 | 12,500 | ||
Stock Options | Option Plan and 2014 SIP | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Recognized compensation expense | $ 353,000 | $ 573,000 | $ 540,000 | ||||||
Number of options awarded | 12,500 |
EMPLOYEE BENEFITS - Option Gran
EMPLOYEE BENEFITS - Option Granted (Details) - Stock Options - $ / shares | 12 Months Ended | |||||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2010 | Sep. 30, 2009 | |
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 | |||||||||
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 | |||||||||
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 | |||||||||
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 | |||||||||
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 | |||||||||
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 | |||||||||
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 | |||||||||
Exercise price and fair value | $ 17.43 | |||||||||
Expected term | 7 years | |||||||||
Volatility rate | 14.37% | |||||||||
Expected interest rate | 2.22% | |||||||||
Expected yield | 0.69% | |||||||||
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 | |||||||||
Fair value, valuation method | Black-Scholes pricing model | |||||||||
Exercise price and fair value | $ 18.46 | |||||||||
Expected term | 7 years | |||||||||
Volatility rate | 15.90% | |||||||||
Expected interest rate | 2.82% | |||||||||
Expected yield | 1.08% | |||||||||
Granted in fiscal 2019 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Estimated fair value of options granted per share | $ 3.38 | |||||||||
Fair value, valuation method | Black-Scholes pricing model | |||||||||
Exercise price and fair value | $ 18.16 | |||||||||
Expected term | 7 years | |||||||||
Volatility rate | 17.76% | |||||||||
Expected interest rate | 1.87% | |||||||||
Expected yield | 1.10% | |||||||||
Granted In Fiscal 2020 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Fair value, valuation method | Black-Scholes pricing model | |||||||||
Exercise price and fair value | $ 10 | |||||||||
Expected term | 7 years | |||||||||
Volatility rate | 33.22% | |||||||||
Expected interest rate | 0.41% | |||||||||
Expected yield | 2.80% |
INTEREST RATE SWAP AGREEMENTS -
INTEREST RATE SWAP AGREEMENTS - Summary of interest rate swap agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
INTEREST RATE SWAP AGREEMENTS | ||
Unrealized Gain (Loss) | $ (20,960) | $ (11,241) |
Interest rate swap contract maturing on 10 Apr 2025 | FHLB Advance | ||
INTEREST RATE SWAP AGREEMENTS | ||
Notional amount | $ 10,000 | |
Receive rate | 1 Mth Libor | |
Unrealized Gain (Loss) | $ (719) | |
Interest rate swap contract maturing on 10 Apr 2025 | FHLB Advance | Minimum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 2.70% | |
Maturity date | Apr. 10, 2025 | |
Interest rate swap contract maturing on 10 Apr 2025 | FHLB Advance | Maximum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 2.70% | |
Maturity date | Apr. 10, 2025 | |
Interest rate swap contract maturing on 1 May 2028 | State and political subdivisions | ||
INTEREST RATE SWAP AGREEMENTS | ||
Notional amount | $ 21,570 | $ 21,570 |
Receive rate | 3 Mth Libor | 3 Mth Libor |
Unrealized Gain (Loss) | $ (3,834) | $ (2,502) |
Interest rate swap contract maturing on 1 May 2028 | State and political subdivisions | Minimum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 3.06% | 3.06% |
Maturity date | Feb. 1, 2027 | Feb. 1, 2027 |
Interest rate swap contract maturing on 1 May 2028 | State and political subdivisions | Maximum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 3.07% | 3.07% |
Maturity date | May 1, 2028 | May 1, 2028 |
Interest rate swap contract maturing on 1 Aug 2026 | Commercial loans | ||
INTEREST RATE SWAP AGREEMENTS | ||
Notional amount | $ 23,656 | $ 17,229 |
Receive rate | 1 Mth Libor +225 to 276 bp | 1 Mth Libor +250 to 276 bp |
Interest rate swap contract maturing on 1 Aug 2026 | Commercial loans | Minimum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 4.10% | 4.10% |
Maturity date | Jun. 13, 2025 | Jun. 13, 2025 |
Interest rate swap contract maturing on 1 Aug 2026 | Commercial loans | Maximum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 5.74% | 5.74% |
Maturity date | Aug. 1, 2026 | Aug. 1, 2026 |
Interest rate swap contract maturing on 12 Jun 2026 | 30 day wholesale funding | ||
INTEREST RATE SWAP AGREEMENTS | ||
Notional amount | $ 90,000 | $ 65,000 |
Receive rate | 1 Mth Libor | 1 Mth Libor |
Unrealized Gain (Loss) | $ (6,157) | $ (1,415) |
Interest rate swap contract maturing on 12 Jun 2026 | 30 day wholesale funding | Minimum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 1.36% | 1.94% |
Maturity date | Feb. 15, 2024 | Feb. 15, 2024 |
Interest rate swap contract maturing on 12 Jun 2026 | 30 day wholesale funding | Maximum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 2.70% | 2.51% |
Maturity date | Jun. 12, 2026 | Jun. 12, 2026 |
Interest rate swap contract maturing on 27 Mar 24 | 90 day wholesale funding | ||
INTEREST RATE SWAP AGREEMENTS | ||
Notional amount | $ 135,000 | $ 135,000 |
Receive rate | 3 Mth Libor | 3 Mth Libor |
Unrealized Gain (Loss) | $ (10,969) | $ (6,605) |
Interest rate swap contract maturing on 27 Mar 24 | 90 day wholesale funding | Minimum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 2.51% | 2.51% |
Maturity date | Jan. 11, 2024 | Jan. 11, 2024 |
Interest rate swap contract maturing on 27 Mar 24 | 90 day wholesale funding | Maximum | ||
INTEREST RATE SWAP AGREEMENTS | ||
Pay rate | 2.78% | 2.78% |
Maturity date | Mar. 27, 2024 | Mar. 27, 2024 |
INTEREST RATE SWAP AGREEMENTS_2
INTEREST RATE SWAP AGREEMENTS - Additional Information (Details) | 12 Months Ended | ||
Sep. 30, 2020USD ($)loansecurityitem | Sep. 30, 2019USD ($)securityloan | Sep. 30, 2018USD ($) | |
INTEREST RATE SWAP AGREEMENTS | |||
Number of interest rate swaps | item | 9 | ||
Number of loans | 4 | 3 | |
Number of investment securities | security | 7 | 7 | |
Fair value hedging | |||
INTEREST RATE SWAP AGREEMENTS | |||
Income (expense) recognized as ineffectiveness | $ | $ (4,000) | $ (12,000) | $ 0 |
Interest rate swap contract one | |||
INTEREST RATE SWAP AGREEMENTS | |||
Number of 30 day FHLB advances | 7 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | $ 1,000 | |
Aggregate undisbursed portion of loans-in-process | 86,862 | $ 114,528 |
Loan Origination Commitments | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | 29,900 | 32,400 |
Aggregate undisbursed portion of loans-in-process | $ 86,900 | $ 114,500 |
Loan Origination Commitments | Minimum | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Market interest rate on fixed and variable rate loans | 3.25% | 1.99% |
Loan Origination Commitments | Maximum | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Market interest rate on fixed and variable rate loans | 4.75% | 6.50% |
Unused lines of Credit | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | $ 40,100 | $ 37,500 |
Letters of Credit | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||
Outstanding commitments | $ 1,100 | $ 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 | Sep. 30, 2020 | Sep. 30, 2019 |
Assets: | ||
Assets, Total | $ 420,415 | $ 512,917 |
Liabilities: | ||
Liabilities, Total | 20,960 | 11,241 |
Level 1 | ||
Assets: | ||
Assets, Total | 51 | 95 |
Level 2 | ||
Assets: | ||
Assets, Total | 420,364 | 512,822 |
Liabilities: | ||
Liabilities, Total | 20,960 | 11,241 |
U.S. Government and agency obligations | ||
Assets: | ||
Assets, Total | 22,394 | 24,865 |
U.S. Government and agency obligations | Level 2 | ||
Assets: | ||
Assets, Total | 22,394 | 24,865 |
State and political subdivisions | ||
Assets: | ||
Assets, Total | 79,621 | 47,646 |
State and political subdivisions | Level 2 | ||
Assets: | ||
Assets, Total | 79,621 | 47,646 |
Mortgage-backed securities - US government agencies | ||
Assets: | ||
Assets, Total | 236,566 | 370,772 |
Mortgage-backed securities - US government agencies | Level 2 | ||
Assets: | ||
Assets, Total | 236,566 | 370,772 |
Corporate bonds | ||
Assets: | ||
Assets, Total | 81,783 | 69,539 |
Corporate bonds | Level 2 | ||
Assets: | ||
Assets, Total | 81,783 | 69,539 |
Equity security - FHLMC preferred stock | ||
Assets: | ||
Assets, Total | 51 | 95 |
Equity security - FHLMC preferred stock | Level 1 | ||
Assets: | ||
Assets, Total | 51 | 95 |
Interest rate swap contract | ||
Liabilities: | ||
Liabilities, Total | 20,960 | 11,241 |
Interest rate swap contract | Level 2 | ||
Liabilities: | ||
Liabilities, Total | $ 20,960 | $ 11,241 |
FAIR VALUE MEASUREMENT - Change
FAIR VALUE MEASUREMENT - Changes in level 3 assets measured at fair value (Details) - Fair value measurements on a nonrecurring basis - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
FAIR VALUE MEASUREMENT | ||
Impaired loans | $ 13,037 | $ 15,542 |
Other Real estate owned | 348 | |
Total | 13,037 | 15,890 |
Level 3 | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans | 13,037 | 15,542 |
Other Real estate owned | 348 | |
Total | $ 13,037 | $ 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 - USD ($) | Sep. 30, 2020 | Sep. 30, 2019 |
FAIR VALUE MEASUREMENT | ||
Impaired loans | $ 13,037,000 | $ 15,542,000 |
Other Real estate owned | 348,000 | |
Level 3 | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans | 13,037,000 | 15,542,000 |
Other Real estate owned | 348,000 | |
Impaired loan | Management discount for selling costs, property type and market volatility | Property appraisals | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans | $ 13,037,000 | |
Impaired loan | Level 3 | Management discount for selling costs, property type and market volatility | 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 | 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 | Weighted average | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans measurement input (in percent) | 7 | |
Impaired loan | Level 3 | Management discount for selling costs, property type and market volatility | Property appraisals | ||
FAIR VALUE MEASUREMENT | ||
Impaired loans | $ 15,542,000 | |
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 | |
Real estate owned | Level 3 | Management discount for selling costs, property type and market volatility | Property appraisals | ||
FAIR VALUE MEASUREMENT | ||
Other Real estate owned | $ 348,000 | |
Real estate owned measurement input (in percent) | 22 | 22 |
FAIR VALUE MEASUREMENT - Asse_2
FAIR VALUE MEASUREMENT - Assets measured at fair value on a non-recurring basis and the adjustments to the carrying value (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Assets: | ||
Cash and cash equivalents | $ 117,081 | $ 47,968 |
Certificates of deposit | 2,102 | 2,351 |
Equity securities | 51 | 95 |
Loans receivable, net | 588,300 | 585,456 |
Amortized Cost | 22,860 | 68,635 |
Fair Value | 420,364 | 512,822 |
Restricted stock | 12,532 | 16,406 |
Accrued interest receivable | 4,699 | 4,549 |
Bank owned life insurance | 32,498 | 31,841 |
Liabilities: | ||
Passbook, club and statement savings accounts | 224,435 | 80,899 |
Certificates of deposit | 269,610 | |
Advances from FHLB short-term | 25,000 | 90,000 |
Advances from FHLB long-term | 260,253 | 286,904 |
Accrued interest payable | 3,374 | 4,328 |
Advances from borrowers for taxes and insurance | 2,798 | 2,332 |
Carrying Amount | ||
Assets: | ||
Investment and mortgage-backed securities held to maturity | 22,860 | 68,635 |
Loans receivable, net | 588,300 | 585,456 |
Liabilities: | ||
Certificates of deposit | 269,610 | 513,183 |
Advances from FHLB long-term | 260,253 | 286,904 |
Fair Value | ||
Assets: | ||
Investment and mortgage-backed securities held to maturity | 24,330 | 69,507 |
Loans receivable, net | 593,768 | 585,476 |
Liabilities: | ||
Certificates of deposit | 278,224 | 529,099 |
Advances from FHLB long-term | 274,172 | 293,839 |
Level 2 | Fair Value | ||
Assets: | ||
Investment and mortgage-backed securities held to maturity | 24,330 | 69,507 |
Level 3 | Fair Value | ||
Assets: | ||
Loans receivable, net | 593,768 | 585,476 |
Liabilities: | ||
Certificates of deposit | 278,224 | 529,099 |
Advances from FHLB long-term | $ 274,172 | $ 293,839 |
FAIR VALUE MEASUREMENT - Additi
FAIR VALUE MEASUREMENT - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Level 2 | ||
FAIR VALUE MEASUREMENT | ||
Collateral dependent impaired loans, fair value | $ 13 | $ 15.5 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Related to acquisition of Polonia Bancorp (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill | |||
Balance, Goodwill | $ 6,102 | ||
Balance, Goodwill | 6,102 | $ 6,102 | |
Core deposit intangible | |||
Balance | 448 | ||
Balance | 340 | 448 | |
GOODWILL AND OTHER INTANGIBLE ASSETS, Total | |||
Amortization | (108) | (123) | $ (138) |
Polonia Bancorp | |||
Goodwill | |||
Balance, Goodwill | 6,102 | ||
Additions/Adjustments | 0 | ||
Balance, Goodwill | 6,102 | 6,102 | |
GOODWILL AND OTHER INTANGIBLE ASSETS, Total | |||
Balance, Total | 6,550 | ||
Additions/Adjustments | 0 | ||
Amortization | (108) | ||
Balance, Total | 6,442 | 6,550 | |
Polonia Bancorp | Core deposit intangible | |||
Core deposit intangible | |||
Balance | 448 | ||
Additions/Adjustments | 0 | ||
Amortization | (108) | ||
Balance | $ 340 | $ 448 | |
Amortization Period | 10 years |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Future fiscal periods amortization expense (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
2021 | $ 93 | |
2022 | 78 | |
2023 | 64 | |
2024 | 49 | |
2025 | 34 | |
Thereafter | 22 | |
Total | $ 340 | $ 448 |
LEASES (Details)
LEASES (Details) | 12 Months Ended |
Sep. 30, 2020 | |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term - operating leases in years | 7 years 3 months |
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 | Sep. 30, 2020USD ($) |
Aggregate lease maturities and obligations | |
2021 | $ 210 |
2022 | 213 |
2023 | 216 |
2024 | 220 |
2025 | 231 |
2025 and thereafter | 416 |
Total lease payments | 1,506 |
Less: interest | 103 |
Present value of lease liabilities | $ 1,403 |
Operating lease liability, balance sheet location | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Lease expense | $ 236,000 | $ 304,000 | $ 360,000 |
2021 | 210,000 | ||
2022 | 213,000 | ||
2023 | 216,000 | ||
2024 | 220,000 | ||
2025 | 231,000 | ||
2025 and thereafter | 416,000 | ||
Total lease payments | 1,506,000 | ||
Operating lease ROU assets | 1,300,000 | ||
Operating lease liabilities | $ 1,403,000 | ||
Operating lease liability, balance sheet location | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | ||
Minimum | |||
Remaining lease term (in years) | 5 years | ||
Maximum | |||
Remaining lease term (in years) | 9 years | ||
Certain Lease Commitments [Member] | |||
2021 | $ 253,000 | ||
2022 | 256,000 | ||
2023 | 260,000 | ||
2024 | 263,000 | ||
2025 | 276,000 | ||
2025 and thereafter | $ 484,000 |
PRUDENTIAL BANCORP, INC. (PAR_3
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) - STATEMENT OF FINANCIAL CONDITION (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Assets: | ||||
Cash | $ 117,081 | $ 47,968 | ||
TOTAL ASSETS | 1,223,353 | 1,289,434 | ||
Stockholders' equity: | ||||
Preferred stock | ||||
Common stock | 108 | 108 | ||
Additional paid-in capital | 118,270 | 118,384 | ||
Treasury stock | (39,207) | (29,698) | ||
Retained earnings | 52,889 | 49,625 | ||
Accumulated other comprehensive income (loss) | (2,943) | 1,192 | ||
Total stockholders' equity | 129,117 | 139,611 | $ 128,409 | $ 136,179 |
PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA | ||||
Assets: | ||||
Cash | 955 | 1,004 | ||
Investment in Bank | 126,684 | 137,238 | ||
Other assets | 1,478 | 1,369 | ||
TOTAL ASSETS | 129,117 | 139,611 | ||
Stockholders' equity: | ||||
Common stock | 108 | 108 | ||
Additional paid-in capital | 118,270 | 118,384 | ||
Treasury stock | (39,207) | (29,698) | ||
Retained earnings | 52,889 | 49,625 | ||
Accumulated other comprehensive income (loss) | (2,943) | 1,192 | ||
Total stockholders' equity | $ 129,117 | $ 139,611 |
PRUDENTIAL BANCORP, INC. (PAR_4
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) - INCOME STATEMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) | |||||||||||||||
Interest on ESOP loan | $ 25,141 | $ 26,737 | $ 25,367 | ||||||||||||
Professional services | 1,698 | 1,460 | 1,866 | ||||||||||||
Other expense | 1,862 | 2,162 | 1,991 | ||||||||||||
Total expense | $ 4,248 | $ 3,996 | $ 4,460 | $ 4,021 | $ 3,957 | $ 3,770 | $ 3,869 | $ 4,043 | 16,725 | 16,065 | 15,639 | ||||
INCOME BEFORE INCOME TAXES | 309 | 4,321 | 3,496 | 3,029 | 2,579 | 3,112 | 2,776 | 2,298 | 11,155 | 11,680 | 10,765 | ||||
Income tax benefit | (239) | 701 | 572 | 566 | 142 | 676 | 619 | 2,264 | 1,600 | 2,150 | 3,701 | ||||
Net income | $ 548 | $ 3,620 | $ 2,924 | $ 2,463 | $ 2,587 | $ 2,630 | $ 2,339 | $ 1,974 | $ 2,437 | $ 2,436 | $ 2,157 | $ 34 | 9,555 | 9,530 | 7,064 |
PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA | |||||||||||||||
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) | |||||||||||||||
Interest on ESOP loan | 59 | ||||||||||||||
Equity in the undistributed earnings of the Bank | 9,959 | 9,954 | 7,465 | ||||||||||||
Total income including equity in earnings | 9,959 | 9,954 | 7,524 | ||||||||||||
Professional services | 168 | 168 | 168 | ||||||||||||
Other expense | 344 | 369 | 362 | ||||||||||||
Total expense | 512 | 537 | 530 | ||||||||||||
INCOME BEFORE INCOME TAXES | 9,447 | 9,417 | 6,936 | ||||||||||||
Income tax benefit | (108) | (113) | (128) | ||||||||||||
Net income | $ 9,555 | $ 9,530 | $ 7,064 |
PRUDENTIAL BANCORP, INC. (PAR_5
PRUDENTIAL BANCORP, INC. (PARENT COMPANY ONLY) - CASH FLOWS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | |||||||||||||||
Net income | $ 548 | $ 3,620 | $ 2,924 | $ 2,463 | $ 2,587 | $ 2,630 | $ 2,339 | $ 1,974 | $ 2,437 | $ 2,436 | $ 2,157 | $ 34 | $ 9,555 | $ 9,530 | $ 7,064 |
Financing Activities: | |||||||||||||||
Purchase treasury stock | (10,534) | (3,108) | (2,548) | ||||||||||||
Cash dividends paid | (6,216) | (5,784) | (6,300) | ||||||||||||
Net decrease in cash and cash equivalents | 69,113 | (203) | 20,268 | ||||||||||||
CASH AND CASH EQUIVALENTS-Beginning of period | 47,968 | 48,171 | 27,903 | 47,968 | 48,171 | 27,903 | |||||||||
CASH AND CASH EQUIVALENTS-End of period | 117,081 | 47,968 | 48,171 | 117,081 | 47,968 | 48,171 | |||||||||
PRUDENTIAL BANCORP, INC. OF PENNSYLVANIA | |||||||||||||||
Operating activities: | |||||||||||||||
Net income | 9,555 | 9,530 | 7,064 | ||||||||||||
Other, net | 52 | (115) | (108) | ||||||||||||
Equity in the undistributed earnings of the Bank | (9,959) | (9,954) | (7,465) | ||||||||||||
Net cash used in operating activities | (352) | (539) | (509) | ||||||||||||
Financing Activities: | |||||||||||||||
Purchase treasury stock | (10,481) | (3,108) | (2,548) | ||||||||||||
Cash dividends paid | (6,216) | (5,784) | (6,300) | ||||||||||||
Dividends from the Bank | 17,000 | 5,000 | 5,000 | ||||||||||||
Net cash provided by (used in) financing activities | 303 | (3,892) | (3,848) | ||||||||||||
Net decrease in cash and cash equivalents | (49) | (4,431) | (4,357) | ||||||||||||
CASH AND CASH EQUIVALENTS-Beginning of period | $ 1,004 | $ 5,435 | $ 9,792 | 1,004 | 5,435 | 9,792 | |||||||||
CASH AND CASH EQUIVALENTS-End of period | $ 955 | $ 1,004 | $ 5,435 | $ 955 | $ 1,004 | $ 5,435 |
CONSOLIDATED QUARTERLY FINANC_3
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONSOLIDATED QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||
Interest income | $ 9,599,000 | $ 9,791,000 | $ 11,010,000 | $ 11,827,000 | $ 11,631,000 | $ 11,273,000 | $ 11,134,000 | $ 10,001,000 | $ 9,529,000 | $ 8,931,000 | $ 8,355,000 | $ 8,036,000 | $ 42,227,000 | $ 44,040,000 | $ 34,851,000 |
Interest expense | 4,233,000 | 4,486,000 | 5,222,000 | 5,484,000 | 5,434,000 | 5,058,000 | 4,811,000 | 3,986,000 | 3,401,000 | 2,709,000 | 2,127,000 | 1,900,000 | 19,425,000 | 19,289,000 | 10,137,000 |
NET INTEREST INCOME | 5,366,000 | 5,305,000 | 5,788,000 | 6,343,000 | 6,197,000 | 6,215,000 | 6,323,000 | 6,015,000 | 6,128,000 | 6,222,000 | 6,228,000 | 6,136,000 | 22,802,000 | 24,751,000 | 24,714,000 |
Provision for loan losses | 1,650,000 | 750,000 | 500,000 | 125,000 | 100,000 | 0 | 0 | 0 | 125,000 | 325,000 | 150,000 | 210,000 | 3,025,000 | 100,000 | 810,000 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 3,716,000 | 4,555,000 | 5,288,000 | 6,218,000 | 6,097,000 | 6,215,000 | 6,323,000 | 6,015,000 | 6,003,000 | 5,897,000 | 6,078,000 | 5,926,000 | 19,777,000 | 24,651,000 | 23,904,000 |
Non-interest income | 841,000 | 3,762,000 | 2,668,000 | 832,000 | 985,000 | 1,187,000 | 542,000 | 380,000 | 533,000 | 985,000 | 567,000 | 415,000 | 8,103,000 | 3,094,000 | 2,500,000 |
Non-interest expense | 4,248,000 | 3,996,000 | 4,460,000 | 4,021,000 | 3,957,000 | 3,770,000 | 3,869,000 | 4,043,000 | 16,725,000 | 16,065,000 | 15,639,000 | ||||
Non-interest expense | 3,696,000 | 4,190,000 | 4,146,000 | 3,992,000 | |||||||||||
INCOME BEFORE INCOME TAXES | 309,000 | 4,321,000 | 3,496,000 | 3,029,000 | 2,579,000 | 3,112,000 | 2,776,000 | 2,298,000 | 11,155,000 | 11,680,000 | 10,765,000 | ||||
INCOME BEFORE INCOME TAXES | 3,386,000 | 3,212,000 | 2,719,000 | 2,403,000 | |||||||||||
Income tax expense | (239,000) | 701,000 | 572,000 | 566,000 | 142,000 | 676,000 | 619,000 | 2,264,000 | 1,600,000 | 2,150,000 | 3,701,000 | ||||
Income tax expense | 799,000 | 582,000 | 380,000 | 429,000 | |||||||||||
NET INCOME | $ 548,000 | $ 3,620,000 | $ 2,924,000 | $ 2,463,000 | $ 2,587,000 | $ 2,630,000 | $ 2,339,000 | $ 1,974,000 | $ 2,437,000 | $ 2,436,000 | $ 2,157,000 | $ 34,000 | $ 9,555,000 | $ 9,530,000 | $ 7,064,000 |
Per share: | |||||||||||||||
Earnings per share - basic (in dollars per share) | $ 0.07 | $ 0.44 | $ 0.33 | $ 0.28 | $ 0.30 | $ 0.30 | $ 0.27 | $ 0.22 | $ 0.27 | $ 0.28 | $ 0.24 | $ 1.12 | $ 1.09 | $ 0.80 | |
Earnings per share - diluted (in dollars per share) | 0.07 | 0.44 | 0.32 | 0.28 | 0.29 | 0.29 | 0.26 | 0.22 | 0.26 | 0.26 | 0.24 | 1.12 | 1.07 | 0.78 | |
Dividends per share (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.50 | $ 0.07 | $ 0.05 | $ 0.50 | $ 0.05 | $ 0.05 | $ 0.40 | $ 0.05 | $ 0.05 | $ 0.20 | $ 0.71 | $ 0.65 | $ 0.70 |