Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PRUDENTIAL BANCORP, INC. | |
Entity Central Index Key | 1,578,776 | |
Trading Symbol | pbip | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock Shares Outstanding | 9,007,996 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 | |
ASSETS | |||
Cash and amounts due from depository institutions | $ 2,587 | $ 1,965 | |
Interest-bearing deposits | 10,471 | 10,475 | |
Total cash and cash equivalents | 13,058 | 12,440 | |
Certificates of deposit | 1,853 | 1,853 | |
Investment and mortgage-backed securities available for sale (amortized cost - March 31, 2017, $192,636; September 30, 2016, $137,222) | 190,108 | 138,694 | |
Investment and mortgage-backed securities held to maturity (fair value - March 31, 2017, $56,540; September 30, 2016, $40,700) | 58,197 | 39,971 | |
Loans receivable - net of allowance for loan losses (March 31, 2017, $3,896; September 30, 2016, $3,269) | 521,885 | 344,948 | |
Accrued interest receivable | 2,626 | 1,928 | |
Real estate owned | 192 | 581 | |
Federal Home Loan Bank stock - at cost | 5,699 | 2,463 | |
Office properties and equipment - net | 8,219 | 1,344 | |
Bank owned life insurance | 27,709 | 13,055 | |
Prepaid expenses and other assets | 2,530 | 1,634 | |
Goodwill | 7,163 | ||
Intangible assets | 785 | ||
Deferred tax assets-net | 4,204 | 569 | |
TOTAL ASSETS | 844,228 | 559,480 | |
Deposits: | |||
Noninterest-bearing | 9,272 | 3,804 | |
Interest-bearing | 585,838 | 385,397 | |
Total deposits | 595,110 | 389,201 | |
Advances from Federal Home Loan Bank (short-term) | 27,000 | 20,000 | |
Advances from Federal Home Loan Bank (long-term) | 79,057 | 30,638 | |
Accrued interest payable | 790 | 1,403 | |
Advances from borrowers for taxes and insurance | 2,789 | 1,748 | |
Accounts payable and accrued expenses | 8,716 | 2,488 | |
Total liabilities | 713,462 | 445,478 | |
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 and 9,544,809 issued and 9,007,996 and 8,045,544 outstanding at March 31, 2017 and September 30, 2016, respectively | 108 | 95 | |
Additional paid-in capital | 117,467 | 95,713 | |
Unearned Employee Stock Ownership Plan (ESOP) shares | (4,550) | ||
Treasury stock, at cost: 1,811,010 shares at March 31, 2017 and and 1,499,265 shares at September 30, 2016 | (26,629) | (21,098) | |
Retained earnings | 41,140 | 43,044 | |
Accumulated other comprehensive (loss) income | [1] | (1,320) | 798 |
Total stockholders' equity | 130,766 | 114,002 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 844,228 | $ 559,480 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
UNAUDITED CONSOLIDATED STATEME3
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Statement Of Financial Position [Abstract] | ||
Investment and mortgage-backed securities available for sale, amortized cost (in dollars) | $ 192,636 | $ 137,222 |
Investment and mortgage-backed securities held to maturity, fair value (in dollars) | 56,540 | 40,700 |
Allowance for loan losses on loans receivable (in dollars) | $ 3,896 | $ 3,269 |
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 | 9,544,809 |
Common stock, shares outstanding | 9,007,996 | 8,045,544 |
Number of treasury share purchased | 1,811,010 | 1,499,265 |
UNAUDITED CONSOLIDATED STATEME4
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
INTEREST INCOME: | ||||
Interest on loans | $ 5,090 | $ 3,166 | $ 8,415 | $ 6,226 |
Interest on mortgage-backed securities | 806 | 683 | 1,377 | 1,195 |
Interest and dividends on investments | 731 | 509 | 1,337 | 988 |
Interest on interest-bearing assets | 44 | 8 | 47 | 13 |
Total interest income | 6,671 | 4,366 | 11,176 | 8,422 |
INTEREST EXPENSE: | ||||
Interest on deposits | 996 | 743 | 1,687 | 1,495 |
Interest on advances from Federal Home Loan Bank | 376 | 106 | 542 | 154 |
Total interest expense | 1,372 | 849 | 2,229 | 1,649 |
NET INTEREST INCOME | 5,299 | 3,517 | 8,947 | 6,773 |
PROVISION FOR LOAN LOSSES | 2,365 | 75 | 2,550 | 75 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 2,934 | 3,442 | 6,397 | 6,698 |
NON-INTEREST INCOME: | ||||
Fees and other service charges | 169 | 110 | 293 | 229 |
Gain on sale of loans, net | 5 | 1 | 44 | 2 |
Gain on the sale of OREO | 58 | |||
Income from bank owned life insurance | 171 | 84 | 277 | 168 |
Other | 173 | 14 | 262 | 26 |
Total non-interest income | 518 | 209 | 876 | 483 |
NON-INTEREST EXPENSE: | ||||
Salaries and employee benefits | 2,140 | 1,670 | 3,709 | 3,387 |
Data processing | 194 | 112 | 306 | 228 |
Professional services | 469 | 241 | 788 | 520 |
Office occupancy | 416 | 259 | 668 | 507 |
Director compensation | 93 | 102 | 161 | 228 |
Deposit insurance premium | 71 | 90 | 41 | 172 |
Advertising | 29 | 21 | 66 | 38 |
Merger related costs | 2,663 | 2,663 | ||
Intangible asset amortization | 37 | 37 | ||
Other | 651 | 301 | 1,044 | 612 |
Total non-interest expense | 6,763 | 2,796 | 9,483 | 5,692 |
(LOSS) INCOME BEFORE INCOME TAXES | (3,311) | 855 | (2,210) | 1,489 |
INCOME TAXES: | ||||
Current (benefit) expense | (642) | 111 | (172) | 397 |
Deferred (benefit) expense | (529) | 196 | (629) | 131 |
Total income tax (benefit) expense | (1,171) | 307 | (801) | 528 |
NET (LOSS) INCOME | $ (2,140) | $ 548 | $ (1,409) | $ 961 |
BASIC (LOSS) EARNINGS PER SHARE (in dollars per share) | $ (0.27) | $ 0.08 | $ (0.18) | $ 0.13 |
DILUTED (LOSS) EARNINGS PER SHARE (in dollars per share) | (0.27) | 0.07 | (0.18) | 0.12 |
DIVIDENDS PER SHARE (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.06 | $ 0.06 |
UNAUDITED CONSOLIDATED STATEME5
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Other Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (2,140) | $ 548 | $ (1,409) | $ 961 |
Unrealized holding (losses) gains on available-for-sale securities | (548) | 2,344 | (4,000) | 1,160 |
Tax effect | 186 | (797) | 1,360 | (395) |
Unrealized holding gain on interest rate swaps | 59 | 784 | ||
Tax effect | (20) | (262) | ||
Total other comprehensive income (loss) | (323) | 1,547 | (2,118) | 765 |
Comprehensive (loss) income | $ (2,463) | $ 2,095 | $ (3,527) | $ 1,726 |
UNAUDITED CONSOLIDATED STATEME6
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Unearned ESOP Shares | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
BALANCE at Sep. 30, 2015 | $ 95 | $ 95,286 | $ (4,926) | $ (14,691) | $ 41,219 | $ 18 | $ 117,001 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 961 | 961 | |||||
Other comprehensive income (loss) | 765 | 765 | |||||
Dividends paid ($0.06 per share) | (452) | (452) | |||||
Purchase of treasury stock (43,435 shares and 430,636 shares for March 31, 2017 and 2016 respectively) | (6,705) | (6,705) | |||||
Treasury stock used for Recognition and Retention Plan (34,805 shares and 41,800 shares issued for March 31, 2017 and 2016 respectively) | (640) | 640 | |||||
Tax benefit from stock compensation plans | 111 | 111 | |||||
Stock option expense | 219 | 219 | |||||
Recognition and Retention Plan expense | 160 | 160 | |||||
ESOP shares committed to be released (8,879 shares and 17,758 shares for March 31, 2017 and 2016 respectively) | 77 | 188 | 265 | ||||
BALANCE at Mar. 31, 2016 | 95 | 95,213 | (4,738) | (20,756) | 41,728 | 783 | 112,325 |
BALANCE at Sep. 30, 2016 | 95 | 95,713 | (4,550) | (21,098) | 43,044 | 798 | 114,002 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (1,409) | (1,409) | |||||
Other comprehensive income (loss) | (2,118) | (2,118) | |||||
Dividends paid ($0.06 per share) | (495) | (495) | |||||
Issuance of common stock (1,274,197 shares) | 13 | 21,814 | 21,827 | ||||
Purchase of treasury stock (43,435 shares and 430,636 shares for March 31, 2017 and 2016 respectively) | (995) | (995) | |||||
Terminate ESOP Plan (303,115 shares) | 4,456 | (5,189) | (733) | ||||
Treasury stock used for Recognition and Retention Plan (34,805 shares and 41,800 shares issued for March 31, 2017 and 2016 respectively) | (653) | 653 | |||||
Tax benefit from stock compensation plans | 127 | 127 | |||||
Stock option expense | 236 | 236 | |||||
Recognition and Retention Plan expense | 185 | 185 | |||||
ESOP shares committed to be released (8,879 shares and 17,758 shares for March 31, 2017 and 2016 respectively) | 45 | $ 94 | 139 | ||||
BALANCE at Mar. 31, 2017 | $ 108 | $ 117,467 | $ (26,629) | $ 41,140 | $ (1,320) | $ 130,766 |
UNAUDITED CONSOLIDATED STATEME7
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 6 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.06 | $ 0.06 |
Issuance of common stock (in shares) | 1,274,197 | |
Purchase of treasury stock (in shares) | 43,435 | 430,636 |
Terminate ESOP Plan (in shares) | 303,115 | |
Treasury stock used for Recognition and Retention Plan (in shares) | 34,651 | 41,800 |
ESOP shares committed to be released | 8,879 | 17,758 |
UNAUDITED CONSOLIDATED STATEME8
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
OPERATING ACTIVITIES: | ||
Net (loss) income | $ (1,409) | $ 961 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation | 241 | 158 |
Net amortization of premiums/discounts | 510 | 66 |
Provision for loan losses | 2,550 | 75 |
Net amortization of deferred loan fees and costs | 165 | 106 |
Share-based compensation expense for stock options and awards | 139 | 379 |
Income from bank owned life insurance | (277) | (168) |
Gain from sale of loans held for sale | (44) | (2) |
Gain on sale of other real estate owned | (60) | (58) |
Originations of loans held for sale | (2,434) | (450) |
Proceeds from sale of loans held for sale | 2,478 | 452 |
Compensation expense of ESOP | 421 | 265 |
Deferred income tax (expense) benefit | (629) | 131 |
Changes in assets and liabilities which used cash: | ||
Accrued interest receivable | (698) | (109) |
Prepaid expenses and other assets | 4,281 | (497) |
Accrued interest payable | (613) | (748) |
Accounts payable and accrued expenses | (2,686) | (383) |
Net cash provided by operating activities | 1,935 | 178 |
INVESTING ACTIVITIES: | ||
Purchase of investment and mortgage-backed securities available for sale | (55,673) | (46,828) |
Purchase of corporate bonds available for sale | (11,714) | (19,421) |
Purchase of municipal bonds held to maturity | (18,847) | |
Loans originated | (104,878) | (29,146) |
Principal collected on loans | 85,384 | 19,416 |
Principal payments received on investment and mortgage-backed securities: | ||
Held-to-maturity | 578 | 21,913 |
Available-for-sale | 11,504 | 1,546 |
Proceeds from the sale of Polonia Bancorp's investment portfolio acquired | 42,164 | |
Redemption of FHLB Stock | 163 | |
Purchase of FHLB stock | (1,482) | |
Proceeds from sale of real estate owned | 449 | 927 |
Acquisition, net of cash | 28,956 | |
Purchase of BOLI | (10,000) | |
Purchases of equipment | (214) | (161) |
Net cash used in investing activities | 32,128 | (53,236) |
FINANCING ACTIVITIES: | ||
Net decrease increase in demand deposits, NOW accounts, and savings accounts | (4,009) | (2,788) |
Net increase in certificates of deposit | 37,675 | 21,784 |
Proceeds from FHLB advances | 38,000 | |
Repayment of FHLB advances | (1,813) | (941) |
Increase in advances from borrowers for taxes and insurance | 1,041 | 107 |
Cash dividends paid | (495) | (452) |
Release unallocated shares from ESOP Plan | 4,550 | |
Repayment of remaining principal balance of ESOP Loan | (733) | |
Purchase of treasury stock | (5,531) | (6,705) |
Tax benefit related to stock compensation plans | 127 | 111 |
Net cash provided by financing activities | 30,812 | 49,116 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 618 | (3,942) |
CASH AND CASH EQUIVALENTS - Beginning of period | 12,440 | 11,272 |
CASH AND CASH EQUIVALENTS - End of period | 13,058 | 7,330 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Interest paid on deposits and advances from Federal Home Loan Bank | 2,842 | 2,397 |
Income taxes paid | 980 | $ 350 |
Assets acquired: | ||
Investment securities | 42,164 | |
Loans | 160,157 | |
Premises | 6,902 | |
Core deposit intangible | 822 | |
Other Assets | 14,039 | |
Total Assets | 224,084 | |
Liabilities assumed: | ||
Deposits | 172,243 | |
Advances | 57,232 | |
Other liabilities | 8,914 | |
Total liabilities assumed | 238,389 | |
Net non-cash assets (liabilities) acquired | (14,305) | |
Cash acquired | $ 47,901 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 1. SIGNIFICANT ACCOUNTING POLICIES Prudential Bancorp, Inc. (the “Company”) is a Pennsylvania corporation and the parent holding company for Prudential Bank (the “Bank”). The Company is a registered bank holding company. The Bank is a community-oriented Pennsylvania-chartered savings bank headquartered in South Philadelphia. The banking office network currently consists of the headquarters and main office, administrative office, and 10 full-service branch offices. Nine of the branch offices are located in Philadelphia (Philadelphia County), one is in Drexel Hill, Delaware County, and one is in Huntingdon Valley, Montgomery County (both Pennsylvania counties). The Bank maintains ATMs at all 11 of the banking offices. The Bank also provides on-line and mobile banking services. The Bank is subject to regulation by the Pennsylvania Department of Banking and Securities (the “Department”), as its chartering authority and primary regulator, and by the Federal Deposit Insurance Corporation (the “FDIC”), which insures the Bank’s deposits up to applicable limits. As a bank holding company, the Company is subject to the regulation of the Board of Governors of the Federal Reserve System. On January 1, 2017, the Company completed its acquisition of Polonia Bancorp, Inc. (“Polonia Bancorp”) and Polonia Bank, Polonia’s wholly owned subsidiary. Polonia Bancorp and Polonia Bank were merged with and into the Company and the Bank, respectively. Basis of presentation – Use of Estimates in the Preparation of Financial Statements — Share-Based Compensation Dividends with respect to non-vested share awards granted pursuant to the Company’s 2008 Recognition and Retention Plan (“2008 Plan”) and held in the Trust (the “Trust”) are held for the benefit of the recipients and are paid out proportionately by the Trust to the recipients of stock awards granted pursuant to the Plan as soon as practicable after the stock awards are earned. A recipient of a share award granted under the 2014 Stock Incentive Plan will not receive any dividends declared on the common stock subject to the award prior to the date the shares are earned. Treasury Stock – FHLB Stock– Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 , Revenue from Contracts with Customers (a new revenue recognition standard). In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815) . In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815) In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) In December 2016, the FASB issued ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Guarantees In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323), Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings ASU 2014-09, Revenue from Contracts with Customers (Topic 606); ASU 2016-02, Leases (Topic 842); and ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) In February 2017, the FASB issued ASU 2017-06 , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715) In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 2. EARNINGS PER SHARE Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding, net of any treasury shares, during the period. Diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding, net of any treasury shares, after consideration of the potential dilutive effect of common stock equivalents, consisting of restricted stock and stock options based upon the treasury stock method using an average market price for the period. The calculated basic and diluted earnings per share are as follows: Three Months Ended March 31, 2017 2016 Basic Diluted Basic Diluted (Dollars in Thousands Except Per Share Data) Net (loss) income $ (2,140 ) $ (2,140 ) $ 548 $ 548 Weighted average shares outstanding 8,639,908 8,639,908 7,380,880 7,380,880 Effect of common stock equivalents - - - 270,973 Adjusted weighted average shares used in earnings per share computation 8,639,908 8,639,908 7,380,880 7,651,853 Earnings (loss) per share - basic and diluted $ (0.27 ) $ (0.27 ) $ 0.07 $ 0.07 Six Months Ended March 31, 2017 2016 Basic Diluted Basic Diluted (Dollars in Thousands Except Per Share Data) Net (loss) income $ (1,409 ) $ (1,409 ) $ 961 $ 961 Weighted average shares outstanding 7,979,541 7,979,541 7,498,933 7,498,933 Effect of common stock equivalents - - - 246,791 Adjusted weighted average shares used in earnings per share computation 7,979,541 7,979,541 7,498,933 7,745,724 Earnings (loss) per share - basic and diluted $ (0.18 ) $ (0.18 ) $ 0.13 $ 0.12 For the three and six month period ended March 31, 2017, respectively, 303,610 and 341,277, exercisable stock options outstanding were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive since the Company incurred a net loss in both periods. The stock options outstanding as of March 31, 2016 had exercise prices below the then current per share market price for the Company’s common stock and were considered dilutive for the earnings per share calculation. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in accumulated other comprehensive (loss) income by component, net of tax: Three Months Ended March 31, 2017 2016 (Dollars in Thousands) Unrealized gains (losses) on available for sale Unrealized gains (losses) securities and interest on available for sale rate swaps (a) securities (a) Beginning Balance $ (997 ) $ (764 ) Unrealized (loss) gains on available for sale securities (362 ) 1,547 Unrealized gains on interest rate swaps. 39 - Total other comprehensive (loss) income (323 ) 1,547 Ending Balance $ (1,320 ) $ 783 (a) All amounts are net of tax. Amounts in parentheses indicate debits. The following table presents the changes in accumulated other comprehensive (loss) income by component, net of tax: Six Months Ended March 31, 2017 2016 (Dollars in Thousands) Unrealized gains (losses) on available for sale Unrealized gains (losses) securities and interest on available for sale rate swaps (a) securities (a) Beginning Balance $ 798 $ 18 Unrealized (loss) gains on available for sale securities (2,641 ) 765 Unrealized gains on interest rate swaps. 523 - Total other comprehensive income (loss) (2,118 ) 765 Ending Balance $ (1,320 ) $ 783 (a) All amounts are net of tax. Amounts in parentheses indicate debits. There was no reclassification adjustment to accumulated comprehensive income for the periods presented. |
INVESTMENT AND MORTGAGE-BACKED
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 6 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT AND MORTGAGE-BACKED SECURITIES | 4. INVESTMENT AND MORTGAGE-BACKED SECURITIES The amortized cost and fair value of investment and mortgage-backed securities, with gross unrealized gains and losses, are as follows: March 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 20,988 $ - $ (493 ) $ 20,495 Mortgage-backed securities - U.S. government agencies 134,529 161 (1,898 ) 132,792 Corporate bonds 37,093 82 (420 ) 36,755 Total debt securities available for sale 192,610 243 (2,811 ) 190,042 FHLMC preferred stock 26 40 - 66 Total securities available for sale $ 192,636 $ 283 $ (2,811 ) $ 190,108 Securities Held to Maturity: U.S. government and agency obligations $ 29,500 $ 122 $ (1,856 ) $ 27,766 Mortgage-backed securities - U.S. government agencies 5,906 325 (37 ) 6,194 Municipal bonds 22,791 150 (361 ) 22,580 Total securities held to maturity $ 58,197 $ 597 $ (2,254 ) $ 56,540 September 30, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 20,988 $ 36 $ - $ 21,024 Mortgage-backed securities - U.S. government agencies 90,817 860 (102 ) 91,575 Corporate bonds 25,411 661 (19 ) 26,053 Total debt securities available for sale 137,216 1,557 (121 ) 138,652 FHLMC preferred stock 6 36 - 42 Total securities available for sale $ 137,222 $ 1,593 $ (121 ) $ 138,694 Securities Held to Maturity: U.S. government and agency obligations $ 33,499 $ 399 $ (129 ) $ 33,769 Mortgage-backed securities - U.S. government agencies 6,472 459 - 6,931 Total securities held to maturity $ 39,971 $ 858 $ (129 ) $ 40,700 The following table shows the gross unrealized losses and related fair values of the Company’s investment securities, aggregated by investment category and length of time that individual securities had been in a continuous loss position at March 31, 2017: Less than 12 months More than 12 months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair Losses Value Losses Value Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ (493 ) $ 20,528 $ - $ - $ (493 ) $ 20,528 Mortgage-backed securities - agency (1,730 ) 86,840 (168 ) 7,251 (1,898 ) 94,091 Corporate bonds (420 ) 22,498 - - (420 ) 22,498 Total securities available for sale $ (2,643 ) $ 129,866 $ (168 ) $ 7,251 $ (2,811 ) $ 137,117 Securities Held to Maturity: U.S. government and agency obligations $ (1,856 ) $ 32,499 $ - $ - $ (1,856 ) $ 32,499 Mortgage-backed securities - agency (37 ) 1,267 - - (37 ) 1,267 Municipal bonds (361 ) 17,044 - - (361 ) 17,044 Total securities held to maturity $ (2,254 ) $ 50,810 $ - $ - $ (2,254 ) $ 50,810 Total $ (4,897 ) $ 180,676 $ (168 ) $ 7,251 $ (5,065 ) $ 187,927 The following table shows the gross unrealized losses and related fair values of the Company’s investment securities, aggregated by investment category and length of time that individual securities had been in a continuous loss position at September 30, 2016: 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: Mortgage-backed securities - agency $ (50 ) $ 16,498 $ (52 ) $ 6,718 $ (102 ) $ 23,216 Corporate bonds (19 ) 3,955 - - (19 ) 3,955 Total securities available for sale $ (69 ) $ 20,453 $ (52 ) $ 6,718 $ (121 ) $ 27,171 Securities Held to Maturity: U.S. government and agency obligations $ (129 ) $ 20,371 $ - $ - $ (129 ) $ 20,371 Total securities held to maturity $ (129 ) $ 20,371 $ - $ - $ (129 ) $ 20,371 Total $ (198 ) $ 40,824 $ (52 ) $ 6,718 $ (250 ) $ 47,542 Management evaluates securities for other-than-temporary impairment (“OTTI”) at least once each quarter, and more frequently when economic or market concerns warrant such evaluation. The evaluation is based upon factors such as the creditworthiness of the issuers/guarantors, the underlying collateral, if applicable, and the continuing performance of the securities. Management also evaluates other facts and circumstances that may be indicative of an OTTI condition. This includes, but is not limited to, an evaluation of the type of security, the length of time and extent to which the fair value of the security has been less than cost, and the near-term prospects of the issuer. The Company assesses whether a credit loss exists with respect to a security by considering whether (1) the Company has the intent to sell the security, (2) it is more likely than not that it will be required to sell the security before recovery has occurred, or (3) it does not expect to recover the entire amortized cost basis of the security. The Company bifurcates the OTTI impact on impaired securities where impairment in value was deemed to be other than temporary between the component representing credit loss and the component representing loss related to other factors. The portion of the fair value decline attributable to credit loss must be recognized through a charge to earnings. The credit component is determined by comparing the present value of the cash flows expected to be collected, discounted at the rate in effect before recognizing any OTTI, with the amortized cost basis of the debt security. The Company uses the cash flows expected to be realized from the security, which includes assumptions about interest rates, timing and severity of defaults, estimates of potential recoveries, the cash flow distribution from the security and other factors, then applies a discount rate equal to the effective yield of the security. The difference between the present value of the expected cash flows and the amortized book value is considered a credit loss. The fair value of the security is determined using the same expected cash flows; the discount rate is a rate the Company determines from open market and other sources as appropriate for the particular security. The difference between the fair value and the security’s remaining amortized cost is recognized in other comprehensive income (loss). For both the three and six months ended March 31, 2017 and 2016, the Company did not record any credit losses on investment securities through earnings. U.S. Government and Agency Obligations - Mortgage-Backed Securities – Corporate Bonds Municipal Bonds The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The maturity table below excludes mortgage-backed securities because the contractual maturities of such securities are not indicative of actual maturities due to significant prepayments. March 31, 2017 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in Thousands) Due after one through five years $ 2,868 $ 2,995 $ 4,051 $ 4,054 Due after five through ten years 20,603 20,228 33,042 32,702 Due after ten years 28,820 27,123 20,988 20,494 Total $ 52,291 $ 50,346 $ 58,081 $ 57,250 During the both three and six month periods ended March 31, 2017 and 2016, the Company did not sell any securities. During the both three and six month periods ended March 31, 2017 and 2016, the Company did not use investment securities as collateral for any of its FHLB advances. |
LOANS RECEIVABLE
LOANS RECEIVABLE | 6 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
LOANS RECEIVABLE | 5. LOANS RECEIVABLE Loans receivable consist of the following: March 31, September 30, 2017 2016 (Dollars in Thousands) One-to-four family residential $ 365,425 $ 233,531 Multi-family residential 13,710 12,478 Commercial real estate 95,853 79,859 Construction and land development 86,164 21,839 Commercial business - 99 Leases 5,491 3,286 Consumer 7,442 799 Total loans 574,085 351,891 Undisbursed portion of loans-in-process (45,173 ) (5,371 ) Deferred loan fees and (costs) (3,131 ) 1,697 Allowance for loan losses (3,896 ) (3,269 ) Net loans $ 521,885 $ 344,948 The following table summarizes by loan segment the balance in the allowance for loan losses and the loans individually and collectively evaluated for impairment by loan segment at March 31, 2017: One- to-four family residential Multi-family residential Commercial real estate Construction and land development Leases Consumer Unallocated Total (Dollars in Thousands) Allowance for loan losses: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 1,350 122 862 1,035 28 135 364 3,896 Total ending allowance balance $ 1,350 $ 122 $ 862 $ 1,035 $ 28 $ 135 $ 364 $ 3,896 Loans: Individually evaluated for impairment $ 5,031 $ 330 $ 2,881 $ 8,703 $ - $ - $ 16,945 Collectively evaluated for impairment 360,394 13,380 92,972 77,461 5,491 7,442 557,140 Total loans $ 365,425 $ 13,710 $ 95,853 $ 86,164 $ 5,491 $ 7,442 $ 574,085 The following table summarizes by loan segment the balance in the allowance for loan losses and the loans individually and collectively evaluated for impairment by loan segment at September 30, 2016: One- to-four family residential Multi-family residential Commercial real estate Construction and land development Commercial business Leases Consumer Unallocated Total (Dollars in Thousands) Allowance for loan losses: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 1,627 137 859 316 1 21 10 298 3,269 Total ending allowance balance $ 1,627 $ 137 $ 859 $ 316 $ 1 $ 21 $ 10 $ 298 $ 3,269 Loans: Individually evaluated for impairment $ 5,553 $ 335 $ 3,154 $ 10,288 $ 99 $ - $ - $ 19,429 Collectively evaluated for impairment 227,978 12,143 76,705 11,551 - 3,286 799 332,462 Total loans $ 233,531 $ 12,478 $ 79,859 $ 21,839 $ 99 $ 3,286 $ 799 $ 351,891 The loan portfolio is segmented at a level that allows management to monitor both risk and performance. Management evaluates for potential impairment all construction, multi-family, commercial real estate, commercial business loans, and leases and all loans and leases more than 90 days delinquent as to principal and/or interest. Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect in full the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Once the determination is made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is generally measured by comparing the recorded investment in the loan to the fair value of the loan using one of the following three methods: (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. Management primarily utilizes the fair value of collateral method as a practically expedient alternative. On collateral method evaluations, any portion of the loan deemed uncollectible is charged-off against the loan loss allowance. The following table presents impaired loans by class as of March 31, 2017, segregated by those for which a specific allowance was required and those for which a specific allowance was not required. Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ - $ - $ 5,031 $ 5,031 $ 5,394 Multi-family residential - - 330 330 330 Commercial real estate - - 2,881 2,881 2,881 Construction and land development - - 8,703 8,703 10,522 Total loans $ - $ - $ 16,945 $ 16,945 $ 19,127 The following table presents impaired loans by class as of September 30, 2016, segregated by those for which a specific allowance was required and those for which a specific allowance was not required. Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ - $ - $ 5,553 $ 5,553 $ 5,869 Multi-family - - 335 335 335 Commercial real estate - - 3,154 3,154 3,154 Construction and land development - - 10,288 10,288 10,288 Commercial loans - - 99 99 99 Total loans $ - $ - $ 19,429 $ 19,429 $ 19,745 The following tables present the average recorded investment in impaired loans and related interest income recognized for the periods indicated: Three Months Ended March 31, 2017 Average Income Recognized Income (Dollars in Thousands) One-to-four family residential $ 6,086 $ 32 $ 33 Multi-family residential 330 6 - Commercial real estate 2,801 17 - Construction and land development 9,607 - - Total loans $ 18,824 $ 55 $ 33 Three Months Ended March 31, 2016 Average Income Recognized Income (Dollars in Thousands) One-to-four family residential $ 5,069 $ 20 $ 29 Multi-family residential 345 - - Commercial real estate 3,703 27 - Construction and land development 9,410 126 - Total loans $ 18,527 $ 173 $ 29 Six Months Ended March 31, 2017 Average Income Recognized Income (Dollars in Thousands) One-to-four family residential $ 5,909 $ 49 $ 58 Multi-family residential 332 12 - Commercial real estate 2,919 35 12 Construction and land development 9,834 - - Total loans $ 18,994 $ 96 $ 70 Six Months Ended March 31, 2016 Average Income Recognized Income (Dollars in Thousands) One-to-four family residential $ 4,781 $ 43 $ 59 Multi-family residential 348 - - Commercial real estate 3,725 42 12 Construction and land development 9,206 252 64 Total loans $ 18,060 $ 337 $ 135 Federal regulations and our loan policy require that the Company utilize an internal asset classification system as a means of reporting problem and potential problem assets. The Company has incorporated an internal asset classification system, consistent with Federal banking regulations, as a part of its credit monitoring system. Management currently classifies problem and potential problem assets as “special mention”, “substandard,” “doubtful” or “loss” assets. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. Assets which do not currently expose the insured institution to sufficient risk to warrant classification in one of the three aforementioned categories but possess weaknesses are required to be designated “special mention.” The following tables present the classes of the loan portfolio in which a formal risk weighting system is utilized summarized by the aggregate “Pass” and the criticized category of “special mention”, and the classified categories of “substandard”, “doubtful” and “loss” within the Company’s risk rating system as applied to the loan portfolio. The Company had no loans classified as “doubtful” or “loss” at either of the dates presented. March 31, 2017 Special Total Pass Mention Substandard Loans (Dollars in Thousands) One-to-four family residential $ - $ 1,657 $ 574 $ 2,231 Multi-family residential 13,710 - - 13,710 Commercial real estate 92,208 1,469 2,176 95,853 Construction and land development 77,461 - 8,703 86,164 Total loans $ 183,379 $ 3,126 $ 11,453 $ 197,958 September 30, 2016 Special Total Pass Mention Substandard Loans (Dollars in Thousands) One-to-four family residential $ - $ 1,681 $ 1,212 $ 2,893 Multi-family residential 12,144 - 334 12,478 Commercial real estate 76,185 943 2,731 79,859 Construction and land development 11,551 - 10,288 21,839 Commercial business 99 - - 99 Total loans $ 99,979 $ 2,624 $ 14,565 $ 117,168 The Company evaluates the classification of one-to-four family residential and consumer loans primarily on a pooled basis. If the Company becomes aware that adverse or distressed conditions exist that may affect a particular single-family residential loan, the loan is downgraded following the above definitions of special mention, substandard, doubtful and loss. The following tables represent loans in which a formal risk rating system is not utilized, but loans are segregated between performing and non-performing based primarily on delinquency status. Non-performing loans that would be included in the table are those loans greater than 90 days past due as to principal and/or interest that do not have a designated risk rating. March 31, 2017 Non- Total Performing Performing Loans (Dollars in Thousands) One-to-four family residential $ 356,816 $ 6,378 $ 363,194 Leases 5,491 - 5,491 Consumer 7,442 - 7,442 Total loans $ 369,749 $ 6,378 $ 376,127 September 30, 2016 Non- Total Performing Performing Loans (Dollars in Thousands) One-to-four family residential $ 226,394 $ 4,244 $ 230,638 Leases 3,286 - 3,286 Consumer 799 - 799 Total loans $ 230,479 $ 4,244 $ 234,723 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is due or overdue, as the case may be. The following table presents the loan categories of the loan portfolio summarized by the aging categories of performing and delinquent loans and nonaccrual loans: March 31, 2017 90 Days+ Total 30-89 Days 90 Days + Past Due Past Due Total Non- Current Past Due Past Due and Accruing and Accruing Loans Accrual (Dollars in Thousands) One-to-four family residential $ 361,265 $ 1,034 $ 3,126 $ - $ 1,034 $ 365,425 $ 6,378 Multi-family residential 13,710 - - - - 13,710 - Commercial real estate 94,247 260 1,346 - 260 95,853 1,346 Construction and land development 77,469 - 8,695 - - 86,164 8,695 Leases 5,402 89 - - 89 5,491 - Consumer 7,436 6 - - 6 7,442 - Total loans $ 559,529 $ 1,389 $ 13,167 $ - $ 1,389 $ 574,085 $ 16,419 September 30, 2016 90 Days+ Total 30-89 Days 90 Days + Past Due Past Due Total Non- Current Past Due Past Due and Accruing and Accruing Loans Accrual (Dollars in Thousands) One-to-four family residential $ 228,904 $ 1,860 $ 2,767 $ - $ 1,860 $ 233,531 $ 4,244 Multi-family residential 12,478 - - - - 12,478 - Commercial real estate 78,513 - 1,346 - - 79,859 1,346 Construction and land development 11,551 - 10,288 - - 21,839 10,288 Commercial business 99 - - - - 99 - Leases 3,286 - - - - 3,286 - Consumer 799 - - - - 799 - Total loans $ 335,630 $ 1,860 $ 14,401 $ - $ 1,860 $ 351,891 $ 15,878 The allowance for loan losses is established through a provision for loan losses charged to expense. The Company maintains the allowance at a level believed to cover all known and inherent losses in the portfolio that are both probable and reasonable to estimate at each reporting date. Management reviews the allowance for loan losses no less than quarterly in order to identify these inherent losses and to assess the overall collection probability for the loan portfolio in view of these inherent losses. For each primary type of loan, a loss factor is established reflecting an estimate of the known and inherent losses in such loan type contained in the portfolio using both a quantitative analysis as well as consideration of qualitative factors. The evaluation process includes, among other things, an analysis of delinquency trends, non-performing loan trends, the level of charge-offs and recoveries, prior loss experience, total loans outstanding, the volume of loan originations, the type, size and geographic concentration of the Company’s loans, the value of collateral securing the loans, the borrowers’ ability to repay and repayment performance, the number of loans requiring heightened management oversight, local economic conditions and industry experience. Commercial real estate loans entail significant additional credit risks compared to owner-occupied one-to-four family residential mortgage loans, as they generally involve large loan balances concentrated with single borrowers or groups of related borrowers. In addition, the payment experience on loans secured by income-producing properties typically depends on the successful operation of the related real estate project and/or business operation of the borrower who is, in some cases, also the primary occupant, and thus may be subject to a greater extent to the effects of adverse conditions in the real estate market and in the economy in general. Commercial business loans typically involve a higher risk of default than residential loans of like duration since their repayment is generally dependent on the successful operation of the borrower’s business and the sufficiency of collateral, if any. Land acquisition, development and construction lending exposes the Company to greater credit risk than permanent mortgage financing. The repayment of land acquisition, development and construction loans depends upon the sale of the property to third parties or the availability of permanent financing upon completion of all improvements. These events may adversely affect the sale of the properties, potentially reducing both the borrowers’ ability to make required payments as well as reducing the value of the collateral property. Such lending is additionally subject to the risk that if the estimate of construction cost proves to be inaccurate, the Company potentially will be compelled to advance additional funds to allow completion of the project. In addition, if the estimate of value proves to be inaccurate, the Company may be confronted with a project, when completed, having less value than the loan amount. If the Company is forced to foreclose on a project prior to completion, there is no assurance that the Company would be able to recover the entire unpaid portion of the loan. The following tables summarize the primary segments of the allowance for loan losses. Activity in the allowance is presented for the both three and six month periods ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 One- to four-family residential Multi- family residential Commercial real estate Construction and land development Leases Consumer Unallocated Total (Dollars in Thousands) ALLL balance at December 31, 2016 $ 1,564 $ 135 $ 963 $ 415 $ 28 $ 35 $ 314 $ 3,454 Charge-offs (113 ) - - (1,819 ) - (16 ) - (1,948 ) Recoveries 25 - - - - - - 25 Provision (126 ) (13 ) (101 ) 2,439 - 116 50 2,365 ALLL balance at March 31, 2017 $ 1,350 $ 122 $ 862 $ 1,035 $ 28 $ 135 $ 364 $ 3,896 Six Months Ended March 31, 2017 One- to four-family residential Multi- family residential Commercial real estate Construction and land development Commercial business Leases Consumer Unallocated Total (Dollars in Thousands) ALLL balance at September 30, 2016 $ 1,627 $ 137 $ 859 $ 316 $ 1 $ 21 $ 10 $ 298 $ 3,269 Charge-offs (113 ) - - (1,819 ) - - (16 ) - (1,948 ) Recoveries 25 - - - - - - - 25 Provision (189 ) (15 ) 3 2,538 (1 ) 7 141 66 2,550 ALLL balance at March 31, 2017 $ 1,350 $ 122 $ 862 $ 1,035 $ - $ 28 $ 135 $ 364 $ 3,896 Three Months Ended March 31, 2016 One- to four-family residential Multi- family residential Commercial real estate Construction and land development Consumer Unallocated Total (Dollars in Thousands) ALLL balance at December 31, 2016 $ 1,471 $ 58 $ 359 $ 757 $ 8 $ 266 $ 2,919 Charge-offs - - - - - - - Recoveries - - - 44 - - 44 Provision 40 (15 ) 69 (28 ) (1 ) 10 75 ALLL balance at March 31, 2016 $ 1,511 $ 43 $ 428 $ 773 $ 7 $ 276 $ 3,038 Six Months Ended March 31, 2016 One- to four-family residential Multi- family residential Commercial real estate Construction and land development Consumer Unallocated Total (Dollars in Thousands) ALLL balance at September 30, 2015 $ 1,635 $ 66 $ 231 $ 724 $ 5 $ 269 $ 2,930 Charge-offs (11 ) - - - - - (11 ) Recoveries - - - 44 - - 44 Provision (113 ) (23 ) 197 5 2 7 75 ALLL balance at March 31, 2016 $ 1,511 $ 43 $ 428 $ 773 $ 7 $ 276 $ 3,038 The Company recorded a provision for loan losses in the amount of $2.4 million and $2.6 million for the three and six months period ended March 31, 2017, respectively, compared to $75,000 for both of the comparable three and six months periods in 2016. During the quarter ended March 31, 2017, the Company recorded a $1.9 million charge off related to Company’s second largest borrowing relationship; the remainder of the increase was due to increased balances of construction and development and consumer loans, At March 31, 2017, the Company had ten loans aggregating $6.9 million that were classified as troubled debt restructurings (“TDRs”). Three of such loans aggregating $4.9 million as of March 31, 2017 were classified as non-performing and were on non-accrual status: with regard to one of such loans in the amount of $1.4 million, management has concerns as to whether the borrower has sufficient cashflow to continue to make scheduled payments eventhough the borrower had made all agreed upon payments. The two remaining loans totaling $3.5 million of which $614,000 was charged off in the current quarter (which are part of the Company’s second largest lending relationship) are in default. The Company did not restructure any debt during the three and six month periods ended March 31, 2017 or during the three and six month periods ended March 31, 2016. Two loans on construction and development loans totaling $2.8 million and a commercial real estate loan for $730,000 were in default as of March 31, 2017. All three loans were a part of the group related loans extended to the Company’s second largest borrower. |
DEPOSITS
DEPOSITS | 6 Months Ended |
Mar. 31, 2017 | |
Deposits [Abstract] | |
DEPOSITS | 6. DEPOSITS Deposits consist of the following major classifications: March 31, September 30, 2017 2016 Amount Percent Amount Percent (Dollars in Thousands) Money market deposit accounts $ 87,107 14.6 % $ 55,552 14.3 % Interest-bearing checking accounts 54,763 9.2 34,984 9.3 Non interest-bearing checking accounts 9,272 1.6 3,804 0.7 Passbook, club and statement savings 107,335 18.0 70,924 18.2 Certificates maturing in six months or less 125,124 21.0 97,418 25.0 Certificates maturing in more than six months 211,509 35.6 126,519 32.5 Total $ 595,110 100.0 % $ 389,201 100.0 % Certificates of $250,000 and over totaled $27.9 million as of March 31, 2017 and $17.0 million as of September 30, 2016. |
ADVANCES FROM FEDERAL HOME LOAN
ADVANCES FROM FEDERAL HOME LOAN BANK | 6 Months Ended |
Mar. 31, 2017 | |
Advances from Federal Home Loan Banks [Abstract] | |
ADVANCES FROM FEDERAL HOME LOAN BANK | 7. ADVANCES FROM FEDERAL HOME LOAN BANK Short-Term The following table reflects the outstanding balances and related information of short-term borrowings from the FHLB. Three Months Six Months Ended Ended (Dollar amount in thousands) March 31, 2016 March 31, 2016 Balance at quarter-end $ 27,000 $ 27,000 Average balance outstanding 27,000 23,500 Maximum month-end balance 27,000 27,000 Weight-average rate at period end 1.00 % 1.00 % Weight-average rate during the period 1.00 % 1.00 % There were no short-term borrowings outstanding for the three and six month periods ended March 31, 2016. As of March 31, 2017, $20.0 million of the outstanding balance is related to two $10.0 million 30 day FHLB advance associated with an interest rate swap contract with a weighted average effective cost of 117 basis points. Average balances outstanding during the year represent daily average balance and interest rates represent interest expense divided by the related average balance. The Bank maintains borrowing facilities with the FHLB and Federal Reserve Bank and the terms and interest rate are subject to change on the date of execution. Long-Term Pursuant to collateral agreement with the FHLB of Pittsburgh, advances are secured by a blanket collateral of loans held by the Bank and qualifying fixed-income securities and FHLB stock. The long-term advances outstanding as of March 31, 2017 are as follows: Type Maturity Date Amount Coupon Call Date (dollars in thousands) Fixed Rate -Advance 17-Nov-17 10,000 1.21 % Not Applicable Fixed Rate -Amortizing 1-Dec-17 1,511 1.16 % Not Applicable Fixed Rate -Advance 4-Dec-17 2,000 1.15 % Not Applicable Fixed Rate -Advance 19-Mar-18 4,939 2.53 % Not Applicable Fixed Rate -Advance 19-Mar-18 4,959 2.13 % Not Applicable Fixed Rate -Advance 20-Jun-18 2,981 1.86 % Not Applicable Fixed Rate -Advance 25-Jun-18 2,973 2.09 % Not Applicable Fixed Rate -Advance 27-Aug-18 6,729 4.15 % Not Applicable Fixed Rate -Advance 15-Nov-18 2,980 1.89 % Not Applicable Fixed Rate -Advance 16-Nov-18 7,500 1.40 % Not Applicable Fixed Rate -Advance 26-Nov-18 1,989 2.35 % Not Applicable Fixed Rate -Advance 3-Dec-18 3,000 1.54 % Not Applicable Fixed Rate -Advance 16-Aug-19 2,929 2.66 % Not Applicable Fixed Rate -Advance 9-Oct-19 1,958 2.54 % Not Applicable Fixed Rate -Amortizing 18-Nov-19 4,098 1.53 % Not Applicable Fixed Rate -Advance 26-Nov-19 2,949 1.81 % Not Applicable Fixed Rate -Advance 22-Jun-20 2,927 2.64 % Not Applicable Fixed Rate -Advance 24-Jun-20 1,936 2.85 % Not Applicable Fixed Rate -Advance 27-Jul-20 2,049 1.38 % Not Applicable Fixed Rate -Advance 17-Aug-20 1,921 3.06 % Not Applicable Fixed Rate -Advance 9-Oct-20 1,929 2.92 % Not Applicable Fixed Rate -Advance 27-Jul-21 249 1.52 % Not Applicable Fixed Rate -Advance 28-Jul-21 249 1.48 % Not Applicable Fixed Rate -Advance 28-Jul-21 249 1.42 % Not Applicable Fixed Rate -Advance 19-Aug-21 249 1.55 % Not Applicable Fixed Rate -Advance 7-Oct-21 1,899 3.19 % Not Applicable Fixed Rate -Advance 12-Oct-21 1,905 3.23 % Not Applicable $ 79,057 2.15 % (a) (a) Weighted average coupon rate. |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 8. DERIVATIVES The Company has contracted with a third party to participate in pay-fixed interest rate swap contracts. The amount of swaps outstanding at March 31, 2017 is being utilized to hedge $21.1 million in floating-rate debt consisting of FHLB advances. Below is a summary of the interest rate swap agreements and the terms there of as of March 31, 2017. March 31, 2017 Notional Pay Receive Maturity Unrealized Amount Rate Rate Date Gain (dollar in thousands) Interest rate swap contract $ 10,000 1.15 % 1 Month Libor 6-Apr-21 $ 250 Interest rate swap contract 10,000 1.18 % 1 Month Libor 13-Jun-21 260 Interest rate swap contract 1,100 4.10 % 1 Month Libor +276 bp 1-Aug-26 72 $ 582 All three interest rate swaps are carried at fair value in accordance with FASB ASC 815 "Derivatives and Hedging." Below is a summary of the interest rate swap agreement and the terms as of September 30, 2016. They are the same swap agreement that were in force as of March 31, 2017. September 30, 2016 Notinal Pay Receive Maturity Unrealized Amount Rate Rate Date Loss (dollar in thousands) Interest rate swap contract $ 10,000 1.15 % 1 Mth Libor 6-Apr-21 $ (92 ) Interest rate swap contract 10,000 1.18 % 1 Mth Libor 13-Jun-21 (103 ) Interest rate swap contract 1,100 4.10 % 1 Mth Libor +276 bp 1-Aug-26 (7 ) $ (202 ) All three interest swaps are carried at fair value in accordance with FASB ASC 815 “Derivatives and Hedging.” |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9. INCOME TAXES Items that gave rise to significant portions of deferred income taxes are as follows: March 31, September 30, 2017 2016 Deferred tax assets: (Dollars in Thousands) Allowance for loan losses $ 1,593 $ 1,289 Nonaccrual interest 292 163 Accrued vacation 12 13 Capital loss carryforward 378 378 Split dollar life insurance 18 18 Post-retirement benefits 93 96 Unrealized losses on available for sale securities 860 - Goodwill 2,042 - Unrealized losses on interest rate swaps - 69 Employee benefit plans 382 434 Total deferred tax assets 5,670 2,460 Valuation allowance (378 ) (378 ) Total deferred tax assets, net of valuation allowance 5,292 2,082 Deferred tax liabilities: Property 423 423 Unrealized gains on available for sale securities - 500 Unrealized gains on interest rate swaps 198 - Miscellaneous 12 12 Deferred loan fees 455 578 Total deferred tax liabilities 1,088 1,513 Net deferred tax assets $ 4,204 $ 569 The Company establishes a valuation allowance for deferred tax assets when management believes that the use of the deferred tax assets is not likely to be fully realized through a carry back to taxable income in prior years or future reversals of existing taxable temporary differences, and/or to a lesser extent, future taxable income. The tax deduction generated by the redemption of the shares of a mutual fund held by the Bank and the subsequent impairment charge on the assets acquired through the redemption in kind are considered capital losses and can only be utilized to the extent of capital gains recognized over a five year period, resulting in the establishment of a valuation allowance for the carryforward period. The valuation allowance totaled $378,000 at March 31, 2017 and September 30, 2016. 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. The Company’s federal and state income tax returns for taxable years through September 30, 2013 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue. |
STOCK COMPENSATION PLANS
STOCK COMPENSATION PLANS | 6 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
STOCK COMPENSATION PLANS | 10. STOCK COMPENSATION PLANS As of December 31, 2016, the Boards of Directors of the Company and the Bank voted to terminate the Bank’s employee stock ownership plan (“ESOP”) effective December 31, 2016. The Company has submitted the proper notices with the Internal Revenue Service and is awaiting receipt of a determination letter in connection with the termination of the ESOP before the final allocation is made to the individual participants. The Bank maintained an ESOP for substantially for the benefit all its full-time employees. The ESOP purchased 427,057 shares (on a converted basis) of common stock for an aggregate cost of approximately $4.5 million in fiscal 2005 in connection with the Bank’s mutual holding company reorganization. The ESOP purchased in connection with the second-step conversion of the Bank an additional 255,564 shares during December 2013 and an additional 30,100 shares at the beginning of January 2014, of the Company’s common stock for an aggregate cost of approximately $3.1 million. The shares were purchased with the proceeds of two loans from the Company. Shares of the Company’s common stock purchased by the ESOP are held in a suspense account until released for allocation to participants as the loans are repaid. Shares are allocated to each eligible participant based on the ratio of each such participant’s compensation, as defined in the ESOP, to the total compensation of all eligible plan participants. As the unearned shares are released from the suspense account, the Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they become committed to be released. To the extent that the fair value of the ESOP shares upon release differs from the cost of such shares, the difference is charged or credited to equity as additional paid-in capital. As of March 31, 2017, the ESOP held 468,156 shares of which a total of 243,734 shares were allocated to participants and had committed to release an additional 35,517 shares as of December 31, 2016. For the six months ended March 31, 2017 and 2016, the Company recognized $139,000 and $265,000, respectively, in compensation expense related to the ESOP. In connection with the termination of the ESOP, the ESOP was required to repay the outstanding indebtness the collateral held in the suspense account. As of January 1, 2017, the Company and Trust purchased from the ESOP 303,115 shares of common stock to pay off the remaining $5.2 million of the outstanding loan balances. Approximately 115,000 unallocated shares remain after the repayment of the indebtness will be distributed to the remaining active plan participants. The Company maintains the 2008 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. As of March 31, 2017, all the shares had been awarded as part of the 2008 RRP. Shares subject to awards under the 2008 RRP generally vest at the rate of 20% per year over five years. 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 of which 45,000 shares have been forfeited as of March 31, 2017. In August 2016, the Company granted 7,473 shares under the 2008 RRP an 3,027 shares under the 2014 SIP. In March 2017, the Company granted 17,128 shares under the 2014 SIP. Compensation expense related to the shares subject to restricted stock awards granted is recognized ratably over the five-year vesting period in an amount which totals the grant date fair value multiplied by the number of shares subject to the grant. During the three and six months ended March 31, 2017, an aggregate of $145,000 and $280,000, respectively was recognized in compensation expense for the grants pursuant to the 2008 RRP and the grants pursuant to the 2014 SIP. An income tax benefit of $95,000 and $39,000, was recognized for the three and six months ended March 31, 2017, respectively. During the three and six months ended March 31, 2016, $115,000 and $243,000 was recognized in compensation expense for the grants pursuant to the 2008 RRP and the grants pursuant to the 2014 SIP. An income tax benefit of $39,000 and $83,000 was recognized for the three and six months ended March 31, 2016. At March 31, 2017, approximately $1.3 million in additional compensation expense for shares awarded related to the 2008 RRP and 2014 SIP remained unrecognized. A summary of the Company’s non-vested stock award activity for the six months ended March 31, 2017 and 2016 is presented in the following tables: Six Months Ended Number of Weighted Average Nonvested stock awards at October 1, 2016 172,788 $ 12.03 Granted 17,128 17.43 Forfeited - - Vested (43,018 ) 11.61 Nonvested stock awards at the March 31, 2017 146,898 $ 12.78 Six Months Ended Number of Weighted Average Nonvested stock awards at October 1, 2015 241,428 $ 11.74 Granted - - Forfeited (36,762 ) 11.55 Vested (49,511 ) 11.47 Nonvested stock awards at the March 31, 2016 155,155 $ 11.87 The Company maintains the 2008 Stock Option Plan (the “2008 Option Plan”) which authorizes the grant of stock options to officers, employees and directors of the Company to acquire shares of common stock with an exercise price at least equal to the fair market value of the common stock on the grant date. Options generally become vested and exercisable at the rate of 20% per year over five years and are generally exercisable for a period of ten years after the grant date. A total of 533,808 shares of common stock were approved for future issuance pursuant to the 2008 Stock Option Plan. As of March 31, 2017, all of the options had been awarded under the 2008 Option Plan. As of March 31, 2017, 467,758 options (on a converted basis) were vested under the 2008 Option Plan. The 2014 SIP reserved up to 714,145 shares for issuance pursuant to options. Options to purchase 587,112 shares were awarded during February 2015, 608,737 shares pursuant to the 2014 SIP and the remainder pursuant to the 2008 Option Plan. During August 2016 the Company granted 18,866 shares under the 2008 Option Plan and 8,634 shares under the 2014 SIP. In March 2017, the Company granted 22,828 shares under the 2014 SIP. A summary of the status of the Company’s stock options under the 2008 Option Plan and the 2014 SIP as of March 31, 2017 and 2016 are presented below: Six Months Ended Number of Weighted Average Outstanding at October 1, 2016 921,909 $ 11.70 Granted 22,828 11.43 Exercised (32,224 ) 11.50 Forfeited - - Outstanding at March 31, 2017 912,513 $ 11.85 Exercisable at March 31, 2017 579,078 $ 11.43 Six Months Ended Number of Weighted Average Outstanding at October 1, 2015 1,074,430 $ 11.92 Granted - - Exercised (130,535 ) 11.49 Forfeited (93,939 ) 11.55 Outstanding at March 31, 2016 849,956 $ 12.03 Exercisable at March 31, 2016 347,037 $ 11.38 The weighted average remaining contractual term was approximately 4.7 years for options outstanding as of March 31, 2017. 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 and $3.18 for options granted during fiscal 2017. The fair value for grants made in fiscal 2015 was estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: an exercise and fair value of $12.23, expected term of seven years, volatility rate of 38.16%, interest rate of 1.62% and a yield of 0.98%. The fair value for grants made in fiscal 2016 was estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: an exercise and fair value of $14.42, expected term of seven years, volatility of 13.82%, interest rate of 1.36% and a yield of 0.80%. The fair value for grants made in March 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, expected term of seven years, volatility of 14.4%, interest rate of 2.22% and a yield of 0.69%. During the three and six months ended March 31, 2017, $138,000 and $268,000, respectively, was recognized in compensation expense for options granted pursuant to the 2008 Option Plan and the 2014 SIP. A tax benefit of $16,000 and $32,000 was recognized for the three and six months ended March 31, 2017, respectively. During the three and six months ended March 31, 2016, $112,000 and $248,000, respectively, was recognized in compensation expense for options granted pursuant to the 2008 Option Plan and the 2014 SIP. A tax benefit of $13,000 and $29,000, respectively, was recognized for the three and six months ended March 31, 2016. At March 31, 2017, there was approximately $1.4 million in additional compensation expense to be recognized for awarded options which remained outstanding and unvested at such date. The weighted average period over which this expense will be recognized is approximately 3.1 years. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | 11. COMMITMENTS AND CONTINGENT LIABILITIES At March 31, 2017, the Company had $13.9 million in outstanding commitments to originate fixed-rate loans with market interest rates ranging from 4.00% to 5.50%. At September 30, 2016, the Company had $9.9 million in outstanding commitments to originate fixed-rate loans with market interest rates ranging from 3.75% to 5.0%. The aggregate undisbursed portion of loans-in-process amounted to $45.2 million at March 31, 2017 and $5.4 million at September 30, 2016. The Company also had commitments under unused lines of credit of $7.2 million as of March 31, 2017 and $3.3 million as of September 30, 2016 and letters of credit outstanding of $1.5 million as of March 31, 2017 and $1.9 million as of September 30, 2016. 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 March 31, 2017, the exposure, which represents a portion of credit risk associated with the interests sold, amounted to $1.9 million related to loans sold to FHLB. This exposure is for the life of the related loans and payables, on our proportionate share, as actual losses are incurred. These loans are seasoned loans and remain performing. The Company is involved in various legal proceedings occurring in the ordinary course of business. Management of the Company, based on discussions with litigation counsel, believes that such proceedings will not have a material adverse effect on the financial condition, operations or cash flows of the Company. However, there can be no assurance that any of the outstanding legal proceedings to which the Company is a party will not be decided adversely to the Company's interests and not have a material adverse effect on the financial condition and operations of the Company. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | 12. FAIR VALUE MEASUREMENT The fair value estimates presented herein are based on pertinent information available to management as of March 31, 2017 and September 30, 2016, respectively. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Generally accepted accounting principles used in the United States establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. The three broad levels of hierarchy are as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Those assets as of March 31, 2017 which are to be measured at fair value on a recurring basis are as follows: Category Used for Fair Value Measurement Level 1 Level 2 Level 3 Total (Dollars in Thousands) Assets: Securities available for sale: U.S. Government and agency obligations $ - $ 20,945 $ - $ 20,945 Mortgage-backed securities - U.S. Government agencies - 132,792 - 132,792 Corporate bonds - 36,755 - 36,755 FHLMC preferred stock 66 - - 66 Interest rate swap contracts - 582 - 582 Total $ 66 $ 190,624 $ - $ 190,690 Those assets as of September 30, 2016 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 $ - $ 21,024 $ - $ 21,024 Mortgage-backed securities - U.S. Government agencies - 91,575 - 91,575 Corporate bonds - 26,053 - 26,053 FHLMC preferred stock 42 - - 42 Total $ 42 $ 138,652 $ - $ 138,694 Liabilities: Interest rate swap contracts $ - $ 202 $ - $ 202 Total $ - $ 202 $ - $ 202 Certain assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The Company measures impaired loans and real estate owned at fair value on a non-recurring basis. Impaired Loans The Company considers loans to be impaired when it becomes more likely than not that the Company will be unable to collect all amounts due (principle and interest) in accordance with the contractual terms of the loan agreements. Collateral dependent impaired loans are based on the fair value of the collateral which is based on appraisals and would be categorized as Level 2 measurement. In some cases, adjustments are made to the appraised values for various factors including the age of the appraisal, age of the comparable included in the appraisal, and known changes in the market and in the collateral. These adjustments are based upon unobservable inputs, and therefore, the fair value measurement has been categorized as a Level 3 measurement. These loans are reviewed for impairment and written down to their net realizable value by charges against the allowance for loan losses. The collateral underlying these loans had a fair value in excess of $16.9 million as of March 31, 2017. 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 age of the appraisal, age of the comparable included in the appraisal, and known changes in the market and in the collateral. As a result, the evaluations are based upon unobservable inputs, and therefore, the fair value measurement has been categorized as a Level 3 measurement. Summary of Non-Recurring Fair Value Measurements At March 31, 2017 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ - $ - $ 16,945 $ 16,945 Real estate owned - - 192 192 Total $ - $ - $ 17,137 $ 17,137 At September 30, 2016 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ - $ - $ 19,429 $ 19,429 Real estate owned - - 581 581 Total $ - $ - $ 20,010 $ 20,010 The following table provides information describing the valuation processes used to determine nonrecurring fair value measurements categorized within Level 3 of the fair value hierarchy: At March 31, 2017 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Impaired loans $ 16,945 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 6% to 46% discount/ 10% Real estate owned $ 192 Property appraisals (1)(3) Management discount for selling costs, property type and market volatility (2) 10% discount At September 30, 2016 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Impaired loans $ 19,429 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 6% to 46% discount/10% Real estate owned $ 581 Property appraisals (1)(3) Management discount for selling costs, property type and market volatility (2) 10% discount (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various Level 3 inputs, which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management and estimated liquidation expenses. The fair value of financial instruments has been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is necessarily required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Fair Value Measurements at March 31, 2017 Carrying Fair Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Cash and cash equivalents $ 13,058 $ 13,058 $ 13,058 $ - $ - Certificate of deposits 1,853 1,853 1,853 - - Investment and mortgage-backed securities available for sale 190,108 190,108 66 190,042 - Investment and mortgage-backed securities held to maturity 58,197 56,540 - 56,540 - Loans receivable, net 521,885 524,148 - - 524,148 Accrued interest receivable 2,626 2,626 2,626 - - Other real estate owned 192 192 192 - - Federal Home Loan Bank stock 5,699 5,699 5,699 - - Bank owned life insurance 27,709 27,709 27,709 - - Interest rate swap contracts 582 582 - 582 - Liabilities: Checking accounts 64,035 64,035 64,035 - - Money market deposit accounts 87,107 87,107 87,107 - - Passbook, club and statement savings accounts 107,335 107,335 107,335 - - Certificates of deposit 336,633 338,846 - - 338,846 Advances from FHLB short-term 27,000 27,000 27,000 - Advances from FHLB long-term 79,057 78,271 - - 78,271 Accrued interest payable 790 790 790 - - Advances from borrowers for taxes and insurance 2,789 2,789 2,789 - - Fair Value Measurements at September 30, 2016 Carrying Fair Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Cash and cash equivalents $ 12,440 $ 12,440 $ 12,440 $ - $ - Certificate of deposits 1,853 1,853 1,853 - - Investment and mortgage-backed securities available for sale 138,694 138,694 42 138,652 - Investment and mortgage-backed securities held to maturity 39,971 40,700 - 40,700 - Loans receivable, net 344,948 344,100 - - 344,100 Accrued interest receivable 1,928 1,928 1,928 - - Federal Home Loan Bank stock 2,463 2,463 2,463 - - Bank owned life insurance 13,055 13,055 13,055 - - Liabilities: Checking accounts 38,788 38,788 38,788 - - Money market deposit accounts 55,552 55,552 55,552 - - Passbook, club and statement savings accounts 70,924 70,924 70,924 - - Certificates of deposit 223,937 225,383 - - 225,383 Accrued interest payable 1,403 1,403 1,403 - - Advances from FHLB -short-term 20,000 20,000 20,000 - - Advances from FHLB -long-term 30,638 30,222 - - 30,222 Advances from borrowers for taxes and insurance 1,748 1,748 1,748 - - Interest rate swap contracts 202 202 - 202 - Cash and Cash Equivalents Investments and Mortgage-Backed Securities — Loans Receivable — Accrued Interest Receivable – Federal Home Loan Bank (FHLB) Stock — Bank Owned Life Insurance — Checking Accounts, Money Market Deposit Accounts, Passbook Accounts, Club Accounts, Statement Savings Accounts, and Certificates of Deposit — Short-term Advances from Federal Home Loan Bank — Long-term Advances from Federal Home Loan Bank — Accrued Interest Payable – Interest rate swaps – Advances from borrowers for taxes and insurance – Commitments to Extend Credit and Letters of Credit — |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 13. GOODWILL AND OTHER INTANGIBLE ASSETS The Company’s goodwill and intangible assets are related to the acquisition of Polonia Bancorp on January 1, 2017. Balance Balance January 1, Additions/ March 31, Amortization 2017 Adjustments Amortization 2017 Period Goodwill $ - $ 7,163 $ - $ 7,163 Core deposit intangible - 822 (37 ) 785 10 years $ - $ 7,985 $ (37 ) $ 7,948 As of March 31, 2017, the current fiscal year and the future amortization fiscal periods expense for the core deposit intangible is: (in thousands) 2017 $ 75 2018 142 2019 127 2020 112 Thereafter 366 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | 14. BUSINESS COMBINATIONS On January 1, 2017, the previously announced proposed acquisition (the “Merger”) of Polonia Bancorp pursuant to the Agreement of Plan of Merger by and between Polonia Bancorp and the Company, dated as of June 2, 2016 (the “ Merger Agreement”) was completed. The shareholders of Polonia Bancorp had the option to receive $11.09 per share in cash or 0.7460 of a share of the Company common stock for each share of Polonia Bancorp common stock held thereby, subject to allocation provisions to assure that, in the aggregate, Polonia Bancorp shareholders received total merger consideration that consisted of 50% stock and 50% cash. As a result of Polonia Bancorp shareholder stock and cash elections and the related proration provisions of the Merger Agreement, the Company issued 1,274,197 shares of its common stock and approximately $18.9 million was paid in cash for the Merger. In connection with the Merger, the consideration paid and the estimated fair value of identifiable assets and liabilities assumed as of the date of the Merger are summarized in the following table: (dollars in thousands) Consideration paid: Common stock issued (1,274,197 shares) at a fair value per share of $17.12 per share. $ 21,814 Cash for common stock exchanged 18,944 Cash in lieu of fractional shares 1 40,759 Assets acquired: Cash and due from banks 47,901 Investments available for sale 42,164 Loans 160,157 Premises and equipment 6,902 Deferred taxes 3,921 Bank-owned life insurance 4,316 Core deposit intangible 822 Other assets 5,802 Total assets 271,985 Liabilities assumed: Deposits 172,243 FHLB advances short-term 7,000 FHLB advances long -term 50,232 Other liabilities 8,914 Total liabilities 238,389 Net assets acquired 33,596 Goodwill resulting from the acquisition $ 7,163 The following table summarizes the estimated fair value of the assets acquired and the liabilities assumed as of the date of acquisition of Polonia Bancorp. Core deposit intangibles will be amortized over a 10 years using an accelerated method. Goodwill will not be amortized, but instead will be evaluated for impairment. (dollars in thousands, except per share data) Purchase Consideration Polonia Common Stock: Total Shares of Common Stock Outstanding 3,416,311 Common Stock Issued Cap 1,708,155 Shares Redeemed for Cash Cap 1,708,156 Prudential Common Stock Issued (conversion rate 0.7460) 1,274,197 Prudential Closing Price at December 31, 2016 $ 17.12 Cash-out rate paid per share for Polonia Common Stock $ 11.09 Purchase consideration assigned to Polonia shares exchanged for Prudential Common Stock $ 21,814 Cash Paid to Polonia for Polonia shares $ 18,943 Cash Paid for fractional shares $ 1 $ 40,758 Net Assets Acquired Polonia stockholders' equity 35,412 Core deposit intangible assets 822 Estimated adjustments to reflect assets acquired at fair value: Investment securities (781 ) Portfolio loans (4,643 ) Allowance for loan and lease losses 1,002 Premises 3,049 Other Assets (74 ) Deferred Taxes 934 Total fair value adjustment to assets acquired 309 Estimated adjustments to reflect liabilities assumed at fair value: Time deposits 894 Borrowings 1,232 Total fair value adjustment to liabilities assumed 2,126 Total net assets acquired 33,595 Goodwill resulting from merger 7,163 Pro Forma Income Statements The following pro forma income statements for the three and six months ended March 31, 2017 and 2016 presents pro forma results of operations of the combined institution (Polonia Bancorp and the Company) had the merger occurred on January 1, 2017 and 2016. The pro forma income statement adjustments are limited to the effects of fair value mark amortization and accretion and intangible asset amortization. No cost savings or additional merger expenses have been included in the pro forma results of operations for the three and six months ended March 31, 2017 and 2016. Three Months Ended March 31, (dollars in thousands, except per share data) 2017 2016 Net interest income 5,299 5,534 Provision for loan and leases losses 2,365 75 Net interest income after provision for loan and lease losses 2,934 5,459 Non-interest income 518 530 Non-interest expenses 6,763 5,137 (Loss) income before income taxes (3,311 ) 852 Income tax (benefit) expense (1,171 ) 312 Net (loss) income (2,140 ) 540 Per share data Weighed average basic shares outstanding 8,639,908 8,655,077 Dilutive shares - 270,973 Adjusted weighted-average dilutive shares 8,639,908 8,926,050 Basic (loss) earnings per common share $ 0.28 $ 0.06 Dilutive (loss) earnings per common share $ 0.28 $ 0.06 (a) Weighted-average basis shares outstanding for both periods reflected are the Company’s weighted-average shares plus the 1,274,197, shares that were issued as consideration for the Merger. The dilutive shares reflect the Company’s estimated diluted shares for the period. Six Months Ended March 31, (dollars in thousands, except per share data) 2017 2016 Net interest income 8,947 10,387 Provision for loan and leases losses 2,550 75 Net interest income after provision for loan and lease losses 6,397 10,312 Non-interest income 876 941 Non-interest expenses 9,483 10,403 (Loss) income before income taxes (2,210 ) 850 Income tax (benefit) expense (801 ) (29 ) Net (loss) income (1,409 ) 879 Per share data Weighed average basic shares outstanding 9,253,738 8,655,077 Dilutive shares - 246,791 Adjusted weighted-average dilutive shares 9,253,738 8,901,868 Basic (loss) earnings per common share $ (0.28 ) $ 0.10 Dilutive (loss) earnings per common share $ (0.28 ) $ 0.10 (a) Weighted-average basis shares outstanding for both periods reflected are the Company’s weighted-average shares plus the 1,274,197, shares that were issued as consideration for the Merger. The dilutive shares reflect the Company’s estimated diluted shares for the period |
SIGNIFICANT ACCOUNTING POLICI23
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation – |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements — |
Share-Based Compensation | Share-Based Compensation Dividends with respect to non-vested share awards granted pursuant to the Company’s 2008 Recognition and Retention Plan (“2008 Plan”) and held in the Trust (the “Trust”) are held for the benefit of the recipients and are paid out proportionately by the Trust to the recipients of stock awards granted pursuant to the Plan as soon as practicable after the stock awards are earned. A recipient of a share award granted under the 2014 Stock Incentive Plan will not receive any dividends declared on the common stock subject to the award prior to the date the shares are earned. |
Treasury Stock | Treasury Stock – |
FHLB Stock | FHLB Stock – |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 , Revenue from Contracts with Customers (a new revenue recognition standard). In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815) . In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815) In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) In December 2016, the FASB issued ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Guarantees In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323), Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings ASU 2014-09, Revenue from Contracts with Customers (Topic 606); ASU 2016-02, Leases (Topic 842); and ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) In February 2017, the FASB issued ASU 2017-06 , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715) In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | Three Months Ended March 31, 2017 2016 Basic Diluted Basic Diluted (Dollars in Thousands Except Per Share Data) Net (loss) income $ (2,140 ) $ (2,140 ) $ 548 $ 548 Weighted average shares outstanding 8,639,908 8,639,908 7,380,880 7,380,880 Effect of common stock equivalents - - - 270,973 Adjusted weighted average shares used in earnings per share computation 8,639,908 8,639,908 7,380,880 7,651,853 Earnings (loss) per share - basic and diluted $ (0.27 ) $ (0.27 ) $ 0.07 $ 0.07 Six Months Ended March 31, 2017 2016 Basic Diluted Basic Diluted (Dollars in Thousands Except Per Share Data) Net (loss) income $ (1,409 ) $ (1,409 ) $ 961 $ 961 Weighted average shares outstanding 7,979,541 7,979,541 7,498,933 7,498,933 Effect of common stock equivalents - - - 246,791 Adjusted weighted average shares used in earnings per share computation 7,979,541 7,979,541 7,498,933 7,745,724 Earnings (loss) per share - basic and diluted $ (0.18 ) $ (0.18 ) $ 0.13 $ 0.12 |
ACCUMULATED OTHER COMPREHENSI25
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of changes in accumulated other comprehensive income | Three Months Ended March 31, 2017 2016 (Dollars in Thousands) Unrealized gains (losses) on available for sale Unrealized gains (losses) securities and interest on available for sale rate swaps (a) securities (a) Beginning Balance $ (997 ) $ (764 ) Unrealized (loss) gains on available for sale securities (362 ) 1,547 Unrealized gains on interest rate swaps. 39 - Total other comprehensive (loss) income (323 ) 1,547 Ending Balance $ (1,320 ) $ 783 (a) All amounts are net of tax. Amounts in parentheses indicate debits. Six Months Ended March 31, 2017 2016 (Dollars in Thousands) Unrealized gains (losses) on available for sale Unrealized gains (losses) securities and interest on available for sale rate swaps (a) securities (a) Beginning Balance $ 798 $ 18 Unrealized (loss) gains on available for sale securities (2,641 ) 765 Unrealized gains on interest rate swaps. 523 - Total other comprehensive income (loss) (2,118 ) 765 Ending Balance $ (1,320 ) $ 783 (a) All amounts are net of tax. Amounts in parentheses indicate debits. |
INVESTMENT AND MORTGAGE-BACKE26
INVESTMENT AND MORTGAGE-BACKED SECURITIES (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities, with gross unrealized gains and losses | March 31, 2017 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 20,988 $ - $ (493 ) $ 20,495 Mortgage-backed securities - U.S. government agencies 134,529 161 (1,898 ) 132,792 Corporate bonds 37,093 82 (420 ) 36,755 Total debt securities available for sale 192,610 243 (2,811 ) 190,042 FHLMC preferred stock 26 40 - 66 Total securities available for sale $ 192,636 $ 283 $ (2,811 ) $ 190,108 Securities Held to Maturity: U.S. government and agency obligations $ 29,500 $ 122 $ (1,856 ) $ 27,766 Mortgage-backed securities - U.S. government agencies 5,906 325 (37 ) 6,194 Municipal bonds 22,791 150 (361 ) 22,580 Total securities held to maturity $ 58,197 $ 597 $ (2,254 ) $ 56,540 September 30, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Securities Available for Sale: U.S. government and agency obligations $ 20,988 $ 36 $ - $ 21,024 Mortgage-backed securities - U.S. government agencies 90,817 860 (102 ) 91,575 Corporate bonds 25,411 661 (19 ) 26,053 Total debt securities available for sale 137,216 1,557 (121 ) 138,652 FHLMC preferred stock 6 36 - 42 Total securities available for sale $ 137,222 $ 1,593 $ (121 ) $ 138,694 Securities Held to Maturity: U.S. government and agency obligations $ 33,499 $ 399 $ (129 ) $ 33,769 Mortgage-backed securities - U.S. government agencies 6,472 459 - 6,931 Total securities held to maturity $ 39,971 $ 858 $ (129 ) $ 40,700 |
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: U.S. government and agency obligations $ (493 ) $ 20,528 $ - $ - $ (493 ) $ 20,528 Mortgage-backed securities - agency (1,730 ) 86,840 (168 ) 7,251 (1,898 ) 94,091 Corporate bonds (420 ) 22,498 - - (420 ) 22,498 Total securities available for sale $ (2,643 ) $ 129,866 $ (168 ) $ 7,251 $ (2,811 ) $ 137,117 Securities Held to Maturity: U.S. government and agency obligations $ (1,856 ) $ 32,499 $ - $ - $ (1,856 ) $ 32,499 Mortgage-backed securities - agency (37 ) 1,267 - - (37 ) 1,267 Municipal bonds (361 ) 17,044 - - (361 ) 17,044 Total securities held to maturity $ (2,254 ) $ 50,810 $ - $ - $ (2,254 ) $ 50,810 Total $ (4,897 ) $ 180,676 $ (168 ) $ 7,251 $ (5,065 ) $ 187,927 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: Mortgage-backed securities - agency $ (50 ) $ 16,498 $ (52 ) $ 6,718 $ (102 ) $ 23,216 Corporate bonds (19 ) 3,955 - - (19 ) 3,955 Total securities available for sale $ (69 ) $ 20,453 $ (52 ) $ 6,718 $ (121 ) $ 27,171 Securities Held to Maturity: U.S. government and agency obligations $ (129 ) $ 20,371 $ - $ - $ (129 ) $ 20,371 Total securities held to maturity $ (129 ) $ 20,371 $ - $ - $ (129 ) $ 20,371 Total $ (198 ) $ 40,824 $ (52 ) $ 6,718 $ (250 ) $ 47,542 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | March 31, 2017 Held to Maturity Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value (Dollars in Thousands) Due after one through five years $ 2,868 $ 2,995 $ 4,051 $ 4,054 Due after five through ten years 20,603 20,228 33,042 32,702 Due after ten years 28,820 27,123 20,988 20,494 Total $ 52,291 $ 50,346 $ 58,081 $ 57,250 |
LOANS RECEIVABLE (Tables)
LOANS RECEIVABLE (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of summary of loans receivable | March 31, September 30, 2017 2016 (Dollars in Thousands) One-to-four family residential $ 365,425 $ 233,531 Multi-family residential 13,710 12,478 Commercial real estate 95,853 79,859 Construction and land development 86,164 21,839 Commercial business - 99 Leases 5,491 3,286 Consumer 7,442 799 Total loans 574,085 351,891 Undisbursed portion of loans-in-process (45,173 ) (5,371 ) Deferred loan fees and (costs) (3,131 ) 1,697 Allowance for loan losses (3,896 ) (3,269 ) Net loans $ 521,885 $ 344,948 |
Schedule of loans individually and collectively evaluated for impairment by loan segment | One- to-four family residential Multi-family residential Commercial real estate Construction and land development Leases Consumer Unallocated Total (Dollars in Thousands) Allowance for loan losses: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 1,350 122 862 1,035 28 135 364 3,896 Total ending allowance balance $ 1,350 $ 122 $ 862 $ 1,035 $ 28 $ 135 $ 364 $ 3,896 Loans: Individually evaluated for impairment $ 5,031 $ 330 $ 2,881 $ 8,703 $ - $ - $ 16,945 Collectively evaluated for impairment 360,394 13,380 92,972 77,461 5,491 7,442 557,140 Total loans $ 365,425 $ 13,710 $ 95,853 $ 86,164 $ 5,491 $ 7,442 $ 574,085 One- to-four family residential Multi-family residential Commercial real estate Construction and land development Commercial business Leases Consumer Unallocated Total (Dollars in Thousands) Allowance for loan losses: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ - Collectively evaluated for impairment 1,627 137 859 316 1 21 10 298 3,269 Total ending allowance balance $ 1,627 $ 137 $ 859 $ 316 $ 1 $ 21 $ 10 $ 298 $ 3,269 Loans: Individually evaluated for impairment $ 5,553 $ 335 $ 3,154 $ 10,288 $ 99 $ - $ - $ 19,429 Collectively evaluated for impairment 227,978 12,143 76,705 11,551 - 3,286 799 332,462 Total loans $ 233,531 $ 12,478 $ 79,859 $ 21,839 $ 99 $ 3,286 $ 799 $ 351,891 |
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 required | Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ - $ - $ 5,031 $ 5,031 $ 5,394 Multi-family residential - - 330 330 330 Commercial real estate - - 2,881 2,881 2,881 Construction and land development - - 8,703 8,703 10,522 Total loans $ - $ - $ 16,945 $ 16,945 $ 19,127 Impaired Loans with Impaired Loans with No Specific Specific Allowance Allowance Total Impaired Loans (Dollars in Thousands) Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance One-to-four family residential $ - $ - $ 5,553 $ 5,553 $ 5,869 Multi-family - - 335 335 335 Commercial real estate - - 3,154 3,154 3,154 Construction and land development - - 10,288 10,288 10,288 Commercial loans - - 99 99 99 Total loans $ - $ - $ 19,429 $ 19,429 $ 19,745 |
Schedule of average investment in impaired loans and related interest income recognized | Three Months Ended March 31, 2017 Average Income Recognized Income (Dollars in Thousands) One-to-four family residential $ 6,086 $ 32 $ 33 Multi-family residential 330 6 - Commercial real estate 2,801 17 - Construction and land development 9,607 - - Total loans $ 18,824 $ 55 $ 33 Three Months Ended March 31, 2016 Average Income Recognized Income (Dollars in Thousands) One-to-four family residential $ 5,069 $ 20 $ 29 Multi-family residential 345 - - Commercial real estate 3,703 27 - Construction and land development 9,410 126 - Total loans $ 18,527 $ 173 $ 29 Six Months Ended March 31, 2017 Average Income Recognized Income (Dollars in Thousands) One-to-four family residential $ 5,909 $ 49 $ 58 Multi-family residential 332 12 - Commercial real estate 2,919 35 12 Construction and land development 9,834 - - Total loans $ 18,994 $ 96 $ 70 Six Months Ended March 31, 2016 Average Income Recognized Income (Dollars in Thousands) One-to-four family residential $ 4,781 $ 43 $ 59 Multi-family residential 348 - - Commercial real estate 3,725 42 12 Construction and land development 9,206 252 64 Total loans $ 18,060 $ 337 $ 135 |
Schedule of classes of the loan portfolio in which a formal risk weighting system is utilized | March 31, 2017 Special Total Pass Mention Substandard Loans (Dollars in Thousands) One-to-four family residential $ - $ 1,657 $ 574 $ 2,231 Multi-family residential 13,710 - - 13,710 Commercial real estate 92,208 1,469 2,176 95,853 Construction and land development 77,461 - 8,703 86,164 Total loans $ 183,379 $ 3,126 $ 11,453 $ 197,958 September 30, 2016 Special Total Pass Mention Substandard Loans (Dollars in Thousands) One-to-four family residential $ - $ 1,681 $ 1,212 $ 2,893 Multi-family residential 12,144 - 334 12,478 Commercial real estate 76,185 943 2,731 79,859 Construction and land development 11,551 - 10,288 21,839 Commercial business 99 - - 99 Total loans $ 99,979 $ 2,624 $ 14,565 $ 117,168 |
Schedule of loans in which a formal risk rating system is not utilized, but loans are segregated between performing and non-performing | March 31, 2017 Non- Total Performing Performing Loans (Dollars in Thousands) One-to-four family residential $ 356,816 $ 6,378 $ 363,194 Leases 5,491 - 5,491 Consumer 7,442 - 7,442 Total loans $ 369,749 $ 6,378 $ 376,127 September 30, 2016 Non- Total Performing Performing Loans (Dollars in Thousands) One-to-four family residential $ 226,394 $ 4,244 $ 230,638 Leases 3,286 - 3,286 Consumer 799 - 799 Total loans $ 230,479 $ 4,244 $ 234,723 |
Schedule of loan categories of the loan portfolio summarized by the aging categories of performing and delinquent loans and nonaccrual loans | March 31, 2017 90 Days+ Total 30-89 Days 90 Days + Past Due Past Due Total Non- Current Past Due Past Due and Accruing and Accruing Loans Accrual (Dollars in Thousands) One-to-four family residential $ 361,265 $ 1,034 $ 3,126 $ - $ 1,034 $ 365,425 $ 6,378 Multi-family residential 13,710 - - - - 13,710 - Commercial real estate 94,247 260 1,346 - 260 95,853 1,346 Construction and land development 77,469 - 8,695 - - 86,164 8,695 Leases 5,402 89 - - 89 5,491 - Consumer 7,436 6 - - 6 7,442 - Total loans $ 559,529 $ 1,389 $ 13,167 $ - $ 1,389 $ 574,085 $ 16,419 September 30, 2016 90 Days+ Total 30-89 Days 90 Days + Past Due Past Due Total Non- Current Past Due Past Due and Accruing and Accruing Loans Accrual (Dollars in Thousands) One-to-four family residential $ 228,904 $ 1,860 $ 2,767 $ - $ 1,860 $ 233,531 $ 4,244 Multi-family residential 12,478 - - - - 12,478 - Commercial real estate 78,513 - 1,346 - - 79,859 1,346 Construction and land development 11,551 - 10,288 - - 21,839 10,288 Commercial business 99 - - - - 99 - Leases 3,286 - - - - 3,286 - Consumer 799 - - - - 799 - Total loans $ 335,630 $ 1,860 $ 14,401 $ - $ 1,860 $ 351,891 $ 15,878 |
Schedule of primary segments of the allowance for loan losses, segmented into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment. | Three Months Ended March 31, 2017 One- to four-family residential Multi- family residential Commercial real estate Construction and land development Leases Consumer Unallocated Total (Dollars in Thousands) ALLL balance at December 31, 2016 $ 1,564 $ 135 $ 963 $ 415 $ 28 $ 35 $ 314 $ 3,454 Charge-offs (113 ) - - (1,819 ) - (16 ) - (1,948 ) Recoveries 25 - - - - - - 25 Provision (126 ) (13 ) (101 ) 2,439 - 116 50 2,365 ALLL balance at March 31, 2017 $ 1,350 $ 122 $ 862 $ 1,035 $ 28 $ 135 $ 364 $ 3,896 Six Months Ended March 31, 2017 One- to four-family residential Multi- family residential Commercial real estate Construction and land development Commercial business Leases Consumer Unallocated Total (Dollars in Thousands) ALLL balance at September 30, 2016 $ 1,627 $ 137 $ 859 $ 316 $ 1 $ 21 $ 10 $ 298 $ 3,269 Charge-offs (113 ) - - (1,819 ) - - (16 ) - (1,948 ) Recoveries 25 - - - - - - - 25 Provision (189 ) (15 ) 3 2,538 (1 ) 7 141 66 2,550 ALLL balance at March 31, 2017 $ 1,350 $ 122 $ 862 $ 1,035 $ - $ 28 $ 135 $ 364 $ 3,896 Three Months Ended March 31, 2016 One- to four-family residential Multi- family residential Commercial real estate Construction and land development Consumer Unallocated Total (Dollars in Thousands) ALLL balance at December 31, 2016 $ 1,471 $ 58 $ 359 $ 757 $ 8 $ 266 $ 2,919 Charge-offs - - - - - - - Recoveries - - - 44 - - 44 Provision 40 (15 ) 69 (28 ) (1 ) 10 75 ALLL balance at March 31, 2016 $ 1,511 $ 43 $ 428 $ 773 $ 7 $ 276 $ 3,038 Six Months Ended March 31, 2016 One- to four-family residential Multi- family residential Commercial real estate Construction and land development Consumer Unallocated Total (Dollars in Thousands) ALLL balance at September 30, 2015 $ 1,635 $ 66 $ 231 $ 724 $ 5 $ 269 $ 2,930 Charge-offs (11 ) - - - - - (11 ) Recoveries - - - 44 - - 44 Provision (113 ) (23 ) 197 5 2 7 75 ALLL balance at March 31, 2016 $ 1,511 $ 43 $ 428 $ 773 $ 7 $ 276 $ 3,038 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Deposits [Abstract] | |
Schedule of major classifications of deposits | March 31, September 30, 2017 2016 Amount Percent Amount Percent (Dollars in Thousands) Money market deposit accounts $ 87,107 14.6 % $ 55,552 14.3 % Interest-bearing checking accounts 54,763 9.2 34,984 9.3 Non interest-bearing checking accounts 9,272 1.6 3,804 0.7 Passbook, club and statement savings 107,335 18.0 70,924 18.2 Certificates maturing in six months or less 125,124 21.0 97,418 25.0 Certificates maturing in more than six months 211,509 35.6 126,519 32.5 Total $ 595,110 100.0 % $ 389,201 100.0 % |
ADVANCES FROM FEDERAL HOME LO29
ADVANCES FROM FEDERAL HOME LOAN BANK (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Advances from Federal Home Loan Banks [Abstract] | |
Schedule of short-term borrowings from the FHLB | Three Months Six Months Ended Ended (Dollar amount in thousands) March 31, 2016 March 31, 2016 Balance at quarter-end $ 27,000 $ 27,000 Average balance outstanding 27,000 23,500 Maximum month-end balance 27,000 27,000 Weight-average rate at period end 1.00 % 1.00 % Weight-average rate during the period 1.00 % 1.00 % |
Schedule of collateral agreement with the FHLB | Type Maturity Date Amount Coupon Call Date (dollars in thousands) Fixed Rate -Advance 17-Nov-17 10,000 1.21 % Not Applicable Fixed Rate -Amortizing 1-Dec-17 1,511 1.16 % Not Applicable Fixed Rate -Advance 4-Dec-17 2,000 1.15 % Not Applicable Fixed Rate -Advance 19-Mar-18 4,939 2.53 % Not Applicable Fixed Rate -Advance 19-Mar-18 4,959 2.13 % Not Applicable Fixed Rate -Advance 20-Jun-18 2,981 1.86 % Not Applicable Fixed Rate -Advance 25-Jun-18 2,973 2.09 % Not Applicable Fixed Rate -Advance 27-Aug-18 6,729 4.15 % Not Applicable Fixed Rate -Advance 15-Nov-18 2,980 1.89 % Not Applicable Fixed Rate -Advance 16-Nov-18 7,500 1.40 % Not Applicable Fixed Rate -Advance 26-Nov-18 1,989 2.35 % Not Applicable Fixed Rate -Advance 3-Dec-18 3,000 1.54 % Not Applicable Fixed Rate -Advance 16-Aug-19 2,929 2.66 % Not Applicable Fixed Rate -Advance 9-Oct-19 1,958 2.54 % Not Applicable Fixed Rate -Amortizing 18-Nov-19 4,098 1.53 % Not Applicable Fixed Rate -Advance 26-Nov-19 2,949 1.81 % Not Applicable Fixed Rate -Advance 22-Jun-20 2,927 2.64 % Not Applicable Fixed Rate -Advance 24-Jun-20 1,936 2.85 % Not Applicable Fixed Rate -Advance 27-Jul-20 2,049 1.38 % Not Applicable Fixed Rate -Advance 17-Aug-20 1,921 3.06 % Not Applicable Fixed Rate -Advance 9-Oct-20 1,929 2.92 % Not Applicable Fixed Rate -Advance 27-Jul-21 249 1.52 % Not Applicable Fixed Rate -Advance 28-Jul-21 249 1.48 % Not Applicable Fixed Rate -Advance 28-Jul-21 249 1.42 % Not Applicable Fixed Rate -Advance 19-Aug-21 249 1.55 % Not Applicable Fixed Rate -Advance 7-Oct-21 1,899 3.19 % Not Applicable Fixed Rate -Advance 12-Oct-21 1,905 3.23 % Not Applicable $ 79,057 2.15 % (a) (a) Weighted average coupon rate. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of interest rate swap agreements and the terms | March 31, 2017 Notional Pay Receive Maturity Unrealized Amount Rate Rate Date Gain (dollar in thousands) Interest rate swap contract $ 10,000 1.15 % 1 Month Libor 6-Apr-21 $ 250 Interest rate swap contract 10,000 1.18 % 1 Month Libor 13-Jun-21 260 Interest rate swap contract 1,100 4.10 % 1 Month Libor +276 bp 1-Aug-26 72 $ 582 September 30, 2016 Notinal Pay Receive Maturity Unrealized Amount Rate Rate Date Loss (dollar in thousands) Interest rate swap contract $ 10,000 1.15 % 1 Mth Libor 6-Apr-21 $ (92 ) Interest rate swap contract 10,000 1.18 % 1 Mth Libor 13-Jun-21 (103 ) Interest rate swap contract 1,100 4.10 % 1 Mth Libor +276 bp 1-Aug-26 (7 ) $ (202 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of deferred income taxes | March 31, September 30, 2017 2016 Deferred tax assets: (Dollars in Thousands) Allowance for loan losses $ 1,593 $ 1,289 Nonaccrual interest 292 163 Accrued vacation 12 13 Capital loss carryforward 378 378 Split dollar life insurance 18 18 Post-retirement benefits 93 96 Unrealized losses on available for sale securities 860 - Goodwill 2,042 - Unrealized losses on interest rate swaps - 69 Employee benefit plans 382 434 Total deferred tax assets 5,670 2,460 Valuation allowance (378 ) (378 ) Total deferred tax assets, net of valuation allowance 5,292 2,082 Deferred tax liabilities: Property 423 423 Unrealized gains on available for sale securities - 500 Unrealized gains on interest rate swaps 198 - Miscellaneous 12 12 Deferred loan fees 455 578 Total deferred tax liabilities 1,088 1,513 Net deferred tax assets $ 4,204 $ 569 |
STOCK COMPENSATION PLANS (Table
STOCK COMPENSATION PLANS (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of summary of the non-vested stock award activity | Six Months Ended Number of Weighted Average Nonvested stock awards at October 1, 2016 172,788 $ 12.03 Granted 17,128 17.43 Forfeited - - Vested (43,018 ) 11.61 Nonvested stock awards at the March 31, 2017 146,898 $ 12.78 Six Months Ended Number of Weighted Average Nonvested stock awards at October 1, 2015 241,428 $ 11.74 Granted - - Forfeited (36,762 ) 11.55 Vested (49,511 ) 11.47 Nonvested stock awards at the March 31, 2016 155,155 $ 11.87 |
Schedule of summary of the status of the company' stock options under the stock option plan | Six Months Ended Number of Weighted Average Outstanding at October 1, 2016 921,909 $ 11.70 Granted 22,828 11.43 Exercised (32,224 ) 11.50 Forfeited - - Outstanding at March 31, 2017 912,513 $ 11.85 Exercisable at March 31, 2017 579,078 $ 11.43 Six Months Ended Number of Weighted Average Outstanding at October 1, 2015 1,074,430 $ 11.92 Granted - - Exercised (130,535 ) 11.49 Forfeited (93,939 ) 11.55 Outstanding at March 31, 2016 849,956 $ 12.03 Exercisable at March 31, 2016 347,037 $ 11.38 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on recurring basis | Those assets as of March 31, 2017 which are to be measured at fair value on a recurring basis are as follows: Category Used for Fair Value Measurement Level 1 Level 2 Level 3 Total (Dollars in Thousands) Assets: Securities available for sale: U.S. Government and agency obligations $ - $ 20,945 $ - $ 20,945 Mortgage-backed securities - U.S. Government agencies - 132,792 - 132,792 Corporate bonds - 36,755 - 36,755 FHLMC preferred stock 66 - - 66 Interest rate swap contracts - 582 - 582 Total $ 66 $ 190,624 $ - $ 190,690 Those assets as of September 30, 2016 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 $ - $ 21,024 $ - $ 21,024 Mortgage-backed securities - U.S. Government agencies - 91,575 - 91,575 Corporate bonds - 26,053 - 26,053 FHLMC preferred stock 42 - - 42 Total $ 42 $ 138,652 $ - $ 138,694 Liabilities: Interest rate swap contracts $ - $ 202 $ - $ 202 Total $ - $ 202 $ - $ 202 |
Schedule of summary of non-recurring fair value measurements | At March 31, 2017 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ - $ - $ 16,945 $ 16,945 Real estate owned - - 192 192 Total $ - $ - $ 17,137 $ 17,137 At September 30, 2016 (Dollars in Thousands) Level 1 Level 2 Level 3 Total Impaired loans $ - $ - $ 19,429 $ 19,429 Real estate owned - - 581 581 Total $ - $ - $ 20,010 $ 20,010 |
Schedule of nonrecurring fair value measurements categorized within level 3 of the fair value hierarchy | At March 31, 2017 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Impaired loans $ 16,945 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 6% to 46% discount/ 10% Real estate owned $ 192 Property appraisals (1)(3) Management discount for selling costs, property type and market volatility (2) 10% discount At September 30, 2016 (Dollars in Thousands) Valuation Range/ Fair Value Technique Unobservable Input Weighted Ave. Impaired loans $ 19,429 Property appraisals (1) (3) Management discount for selling costs, property type and market volatility (2) 6% to 46% discount/10% Real estate owned $ 581 Property appraisals (1)(3) Management discount for selling costs, property type and market volatility (2) 10% 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 March 31, 2017 Carrying Fair Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Cash and cash equivalents $ 13,058 $ 13,058 $ 13,058 $ - $ - Certificate of deposits 1,853 1,853 1,853 - - Investment and mortgage-backed securities available for sale 190,108 190,108 66 190,042 - Investment and mortgage-backed securities held to maturity 58,197 56,540 - 56,540 - Loans receivable, net 521,885 524,148 - - 524,148 Accrued interest receivable 2,626 2,626 2,626 - - Other real estate owned 192 192 192 - - Federal Home Loan Bank stock 5,699 5,699 5,699 - - Bank owned life insurance 27,709 27,709 27,709 - - Interest rate swap contracts 582 582 - 582 - Liabilities: Checking accounts 64,035 64,035 64,035 - - Money market deposit accounts 87,107 87,107 87,107 - - Passbook, club and statement savings accounts 107,335 107,335 107,335 - - Certificates of deposit 336,633 338,846 - - 338,846 Advances from FHLB short-term 27,000 27,000 27,000 - Advances from FHLB long-term 79,057 78,271 - - 78,271 Accrued interest payable 790 790 790 - - Advances from borrowers for taxes and insurance 2,789 2,789 2,789 - - Fair Value Measurements at September 30, 2016 Carrying Fair Amount Value (Level 1) (Level 2) (Level 3) (Dollars in Thousands) Assets: Cash and cash equivalents $ 12,440 $ 12,440 $ 12,440 $ - $ - Certificate of deposits 1,853 1,853 1,853 - - Investment and mortgage-backed securities available for sale 138,694 138,694 42 138,652 - Investment and mortgage-backed securities held to maturity 39,971 40,700 - 40,700 - Loans receivable, net 344,948 344,100 - - 344,100 Accrued interest receivable 1,928 1,928 1,928 - - Federal Home Loan Bank stock 2,463 2,463 2,463 - - Bank owned life insurance 13,055 13,055 13,055 - - Liabilities: Checking accounts 38,788 38,788 38,788 - - Money market deposit accounts 55,552 55,552 55,552 - - Passbook, club and statement savings accounts 70,924 70,924 70,924 - - Certificates of deposit 223,937 225,383 - - 225,383 Accrued interest payable 1,403 1,403 1,403 - - Advances from FHLB -short-term 20,000 20,000 20,000 - - Advances from FHLB -long-term 30,638 30,222 - - 30,222 Advances from borrowers for taxes and insurance 1,748 1,748 1,748 - - Interest rate swap contracts 202 202 - 202 - |
GOODWILL AND OTHER INTANGIBLE34
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and intangible assets are related to the acquisition of Polonia | Balance Balance January 1, Additions/ March 31, Amortization 2017 Adjustments Amortization 2017 Period Goodwill $ - $ 7,163 $ - $ 7,163 Core deposit intangible - 822 (37 ) 785 10 years $ - $ 7,985 $ (37 ) $ 7,948 |
Schedule of goodwill and intangible assets are related to the acquisition of Polonia | (in thousands) 2017 $ 75 2018 142 2019 127 2020 112 Thereafter 366 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of consideration paid and estimated fair value of identifiable assets and liabilities assumed | (dollars in thousands) Consideration paid: Common stock issued (1,274,197 shares) at a fair value per share of $17.12 per share. $ 21,814 Cash for common stock exchanged 18,944 Cash in lieu of fractional shares 1 40,759 Assets acquired: Cash and due from banks 47,901 Investments available for sale 42,164 Loans 160,157 Premises and equipment 6,902 Deferred taxes 3,921 Bank-owned life insurance 4,316 Core deposit intangible 822 Other assets 5,802 Total assets 271,985 Liabilities assumed: Deposits 172,243 FHLB advances short-term 7,000 FHLB advances long -term 50,232 Other liabilities 8,914 Total liabilities 238,389 Net assets acquired 33,596 Goodwill resulting from the acquisition $ 7,163 |
Schedule of estimated fair value of the assets acquired and the liabilities assumed | (dollars in thousands, except per share data) Purchase Consideration Polonia Common Stock: Total Shares of Common Stock Outstanding 3,416,311 Common Stock Issued Cap 1,708,155 Shares Redeemed for Cash Cap 1,708,156 Prudential Common Stock Issued (conversion rate 0.7460) 1,274,197 Prudential Closing Price at December 31, 2016 $ 17.12 Cash-out rate paid per share for Polonia Common Stock $ 11.09 Purchase consideration assigned to Polonia shares exchanged for Prudential Common Stock $ 21,814 Cash Paid to Polonia for Polonia shares $ 18,943 Cash Paid for fractional shares $ 1 $ 40,758 Net Assets Acquired Polonia stockholders' equity 35,412 Core deposit intangible assets 822 Estimated adjustments to reflect assets acquired at fair value: Investment securities (781 ) Portfolio loans (4,643 ) Allowance for loan and lease losses 1,002 Premises 3,049 Other Assets (74 ) Deferred Taxes 934 Total fair value adjustment to assets acquired 309 Estimated adjustments to reflect liabilities assumed at fair value: Time deposits 894 Borrowings 1,232 Total fair value adjustment to liabilities assumed 2,126 Total net assets acquired 33,595 Goodwill resulting from merger 7,163 |
Schedule of Pro Forma Income Statements | Three Months Ended March 31, (dollars in thousands, except per share data) 2017 2016 Net interest income 5,299 5,534 Provision for loan and leases losses 2,365 75 Net interest income after provision for loan and lease losses 2,934 5,459 Non-interest income 518 530 Non-interest expenses 6,763 5,137 (Loss) income before income taxes (3,311 ) 852 Income tax (benefit) expense (1,171 ) 312 Net (loss) income (2,140 ) 540 Per share data Weighed average basic shares outstanding 8,639,908 8,655,077 Dilutive shares - 270,973 Adjusted weighted-average dilutive shares 8,639,908 8,926,050 Basic (loss) earnings per common share $ 0.28 $ 0.06 Dilutive (loss) earnings per common share $ 0.28 $ 0.06 (a) Weighted-average basis shares outstanding for both periods reflected are the Company’s weighted-average shares plus the 1,274,197, shares that were issued as consideration for the Merger. The dilutive shares reflect the Company’s estimated diluted shares for the period. Six Months Ended March 31, (dollars in thousands, except per share data) 2017 2016 Net interest income 8,947 10,387 Provision for loan and leases losses 2,550 75 Net interest income after provision for loan and lease losses 6,397 10,312 Non-interest income 876 941 Non-interest expenses 9,483 10,403 (Loss) income before income taxes (2,210 ) 850 Income tax (benefit) expense (801 ) (29 ) Net (loss) income (1,409 ) 879 Per share data Weighed average basic shares outstanding 9,253,738 8,655,077 Dilutive shares - 246,791 Adjusted weighted-average dilutive shares 9,253,738 8,901,868 Basic (loss) earnings per common share $ (0.28 ) $ 0.10 Dilutive (loss) earnings per common share $ (0.28 ) $ 0.10 (a) Weighted-average basis shares outstanding for both periods reflected are the Company’s weighted-average shares plus the 1,274,197, shares that were issued as consideration for the Merger. The dilutive shares reflect the Company’s estimated diluted shares for the period |
SIGNIFICANT ACCOUNTING POLICI36
SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) $ in Thousands | 6 Months Ended |
Mar. 31, 2017USD ($)Branchshares | |
Significant Accounting Policies [Line Items] | |
Number of full service branch offices | 10 |
Number of branch offices | 11 |
Terminate ESOP Plan, value | $ | $ 733 |
Terminate ESOP Plan (in shares) | shares | 303,115 |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | shares | 42,791 |
Treasury Stock | |
Significant Accounting Policies [Line Items] | |
Terminate ESOP Plan, value | $ | $ 5,189 |
Philadelphia (Philadelphia County) | |
Significant Accounting Policies [Line Items] | |
Number of branch offices | 9 |
Drexel Hill, Delaware County, Pennsylvania | |
Significant Accounting Policies [Line Items] | |
Number of branch offices | 1 |
Huntingdon Valley, Montgomery County | |
Significant Accounting Policies [Line Items] | |
Number of branch offices | 1 |
EARNINGS PER SHARE - Calculated
EARNINGS PER SHARE - Calculated basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings per share - basic | ||||
Net (loss) income | $ (2,140) | $ 548 | $ (1,409) | $ 961 |
Weighted average shares outstanding - basic | 8,639,908 | 7,380,880 | 7,979,541 | 7,498,933 |
Effect of common stock equivalents - basic | ||||
Adjusted weighted average shares used in earnings per share computation - basic | 8,639,908 | 7,380,880 | 7,979,541 | 7,498,933 |
Earnings per share - basic (in dollars per share) | $ (0.27) | $ 0.08 | $ (0.18) | $ 0.13 |
Earnings per share - diluted | ||||
Net (loss) income | $ (2,140) | $ 548 | $ (1,409) | $ 961 |
Weighted average shares outstanding - diluted | 8,639,908 | 7,380,880 | 7,979,541 | 7,498,933 |
Effect of common stock equivalents - diluted | 270,973 | 246,791 | ||
Adjusted weighted average shares used in earnings per share computation - diluted | 8,639,908 | 7,651,853 | 7,979,541 | 7,745,724 |
Earnings per share - diluted (in dollars per share) | $ (0.27) | $ 0.07 | $ (0.18) | $ 0.12 |
EARNINGS PER SHARE (Detail Text
EARNINGS PER SHARE (Detail Textuals) - shares | 3 Months Ended | 6 Months Ended |
Mar. 31, 2017 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Exercisable stock options outstanding not included in computation of diluted earnings per share | 303,610 | 341,277 |
ACCUMULATED OTHER COMPREHENSI39
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Changes in accumulated other comprehensive income (loss) by component net of tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | $ 798 | |||
Total other comprehensive loss | $ (323) | $ 1,547 | (2,118) | $ 765 | |
Ending Balance | [1] | (1,320) | (1,320) | ||
Unrealized gains (losses) on available for sale securities and interest rate swaps | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | (997) | 798 | ||
Unrealized (loss) gains on available for sale securities | [1] | (362) | (2,641) | ||
Unrealized gains on interest rate swaps | [1] | 39 | 523 | ||
Total other comprehensive loss | [1] | (323) | (2,118) | ||
Ending Balance | [1] | $ (1,320) | $ (1,320) | ||
Unrealized gains (losses) on available for sale securities | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | (764) | 18 | ||
Unrealized (loss) gains on available for sale securities | [1] | 1,547 | 765 | ||
Unrealized gains on interest rate swaps | [1] | ||||
Total other comprehensive loss | [1] | 1,547 | 765 | ||
Ending Balance | [1] | $ 783 | $ 783 | ||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
INVESTMENT AND MORTGAGE-BACKE40
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 | Mar. 31, 2017 | Sep. 30, 2016 |
Securities Available for Sale: | ||
Amortized Cost | $ 192,636 | $ 137,222 |
Gross Unrealized Gains | 283 | 1,593 |
Gross Unrealized Losses | (2,811) | (121) |
Fair Value | 190,108 | 138,694 |
Securities Held to Maturity: | ||
Amortized Cost | 58,197 | 39,971 |
Gross Unrealized Gains | 597 | 858 |
Gross unrealized losses | (2,254) | (129) |
Fair value | 56,540 | 40,700 |
U.S. government and agency obligations | ||
Securities Available for Sale: | ||
Amortized Cost | 20,988 | 20,988 |
Gross Unrealized Gains | 36 | |
Gross Unrealized Losses | (493) | |
Fair Value | 20,495 | 21,024 |
Securities Held to Maturity: | ||
Amortized Cost | 29,500 | 33,499 |
Gross Unrealized Gains | 122 | 399 |
Gross unrealized losses | (1,856) | (129) |
Fair value | 27,766 | 33,769 |
Mortgage-backed securities - US government agencies | ||
Securities Available for Sale: | ||
Amortized Cost | 134,529 | 90,817 |
Gross Unrealized Gains | 161 | 860 |
Gross Unrealized Losses | (1,898) | (102) |
Fair Value | 132,792 | 91,575 |
Securities Held to Maturity: | ||
Amortized Cost | 5,906 | 6,472 |
Gross Unrealized Gains | 325 | 459 |
Gross unrealized losses | (37) | |
Fair value | 6,194 | 6,931 |
Corporate bonds | ||
Securities Available for Sale: | ||
Amortized Cost | 37,093 | 25,411 |
Gross Unrealized Gains | 82 | 661 |
Gross Unrealized Losses | (420) | (19) |
Fair Value | 36,755 | 26,053 |
Total debt securities available for sale | ||
Securities Available for Sale: | ||
Amortized Cost | 192,610 | 137,216 |
Gross Unrealized Gains | 243 | 1,557 |
Gross Unrealized Losses | (2,811) | (121) |
Fair Value | 190,042 | 138,652 |
FHLMC preferred stock | ||
Securities Available for Sale: | ||
Amortized Cost | 26 | 6 |
Gross Unrealized Gains | 40 | 36 |
Gross Unrealized Losses | ||
Fair Value | 66 | $ 42 |
Municipal bonds | ||
Securities Held to Maturity: | ||
Amortized Cost | 22,791 | |
Gross Unrealized Gains | 150 | |
Gross unrealized losses | (361) | |
Fair value | $ 22,580 |
INVESTMENT AND MORTGAGE-BACKE41
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Gross unrealized losses and related fair values of investment securities, aggregated by investment category and length of time (Details 1) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | $ (2,643) | $ (69) |
Less than 12 months - Fair value | 129,866 | 20,453 |
More than 12 months - Gross Unrealized Losses | (168) | (52) |
More than 12 months - Fair value | 7,251 | 6,718 |
Gross Unrealized Losses - Total | (2,811) | (121) |
Fair Value - Total | 137,117 | 27,171 |
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | (2,254) | (129) |
Less than 12 months - Fair value | 50,810 | 20,371 |
More than 12 months - Gross Unrealized Losses | ||
More than 12 months - Fair value | ||
Gross Unrealized Losses -Total | (2,254) | (129) |
Fair Value - Total | 50,810 | 20,371 |
Less than 12 months - Gross Unrealized Losses | (4,897) | (198) |
Less than 12 months - Fair Value | 180,676 | 40,824 |
More than 12 months - Gross Unrealized Losses | (168) | (52) |
More than 12 months - Fair Value | 7,251 | 6,718 |
Gross Unrealized Losses -Total | (5,065) | (250) |
Fair Value - Total | 187,927 | 47,542 |
U.S. government and agency obligations | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (493) | |
Less than 12 months - Fair value | 20,528 | |
More than 12 months - Gross Unrealized Losses | ||
More than 12 months - Fair value | ||
Gross Unrealized Losses - Total | (493) | |
Fair Value - Total | 20,528 | |
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | (1,856) | (129) |
Less than 12 months - Fair value | 32,499 | 20,371 |
More than 12 months - Gross Unrealized Losses | ||
More than 12 months - Fair value | ||
Gross Unrealized Losses -Total | (1,856) | (129) |
Fair Value - Total | 32,499 | 20,371 |
Mortgage-backed securities - US government agencies | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (1,730) | (50) |
Less than 12 months - Fair value | 86,840 | 16,498 |
More than 12 months - Gross Unrealized Losses | (168) | (52) |
More than 12 months - Fair value | 7,251 | 6,718 |
Gross Unrealized Losses - Total | (1,898) | (102) |
Fair Value - Total | 94,091 | 23,216 |
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | (37) | |
Less than 12 months - Fair value | 1,267 | |
More than 12 months - Gross Unrealized Losses | ||
More than 12 months - Fair value | ||
Gross Unrealized Losses -Total | (37) | |
Fair Value - Total | 1,267 | |
Corporate bonds | ||
Securities Available for Sale: | ||
Less than 12 months - Gross Unrealized Losses | (420) | (19) |
Less than 12 months - Fair value | 22,498 | 3,955 |
More than 12 months - Gross Unrealized Losses | ||
More than 12 months - Fair value | ||
Gross Unrealized Losses - Total | (420) | (19) |
Fair Value - Total | 22,498 | $ 3,955 |
Municipal bonds | ||
Securities Held to Maturity: | ||
Less than 12 months - Gross Unrealized Losses | (361) | |
Less than 12 months - Fair value | 17,044 | |
More than 12 months - Gross Unrealized Losses | ||
More than 12 months - Fair value | ||
Gross Unrealized Losses -Total | (361) | |
Fair Value - Total | $ 17,044 |
INVESTMENT AND MORTGAGE-BACKE42
INVESTMENT AND MORTGAGE-BACKED SECURITIES - Amortized cost and fair value of debt securities, by contractual maturity (Details 2) $ in Thousands | Mar. 31, 2017USD ($) |
Held to Maturity, Amortized Cost | |
Due after one through five years | $ 2,868 |
Due after five through ten years | 20,603 |
Due after ten years | 28,820 |
Total | 52,291 |
Held to Maturity, Fair Value | |
Due after one through five years | 2,995 |
Due after five through ten years | 20,228 |
Due after ten years | 27,123 |
Total | 50,346 |
Available for Sale, Amortized Cost | |
Due after one through five years | 4,051 |
Due after five through ten years | 33,042 |
Due after ten years | 20,988 |
Total | 58,081 |
Available for Sale, Fair Value | |
Due after one through five years | 4,054 |
Due after five through ten years | 32,702 |
Due after ten years | 20,494 |
Total | $ 57,250 |
INVESTMENT AND MORTGAGE-BACKE43
INVESTMENT AND MORTGAGE-BACKED SECURITIES (Detail Textuals) | Mar. 31, 2017Security |
U.S. Government and agency obligations | |
Marketable Securities [Line Items] | |
Number of investment securities in debt obligations in the category of loss position less than 12 months held by company | 14 |
Mortgage-backed securities - US government agencies | |
Marketable Securities [Line Items] | |
Number of investment securities in debt obligations in the category of loss position less than 12 months held by company | 39 |
Number of investment securities in debt obligations in the category of loss position more than 12 months held by company | 6 |
Corporate bonds | |
Marketable Securities [Line Items] | |
Number of investment securities in debt obligations in the category of loss position less than 12 months held by company | 16 |
Municipal bonds | |
Marketable Securities [Line Items] | |
Number of investment securities in debt obligations in the category of loss position less than 12 months held by company | 9 |
LOANS RECEIVABLE - Summary of L
LOANS RECEIVABLE - Summary of Loans receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $ 574,085 | $ 351,891 | ||||
Undisbursed portion of loans-in-process | (45,173) | (5,371) | ||||
Deferred loan fees and (costs) | (3,131) | 1,697 | ||||
Allowance for loan losses | (3,896) | $ (3,454) | (3,269) | $ (3,038) | $ (2,919) | $ (2,930) |
Net loans | 521,885 | 344,948 | ||||
One-to-four family residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 365,425 | 233,531 | ||||
Allowance for loan losses | (1,350) | (1,564) | (1,627) | (1,511) | (1,471) | (1,635) |
Multi-family residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 13,710 | 12,478 | ||||
Allowance for loan losses | (122) | (135) | (137) | (43) | (58) | (66) |
Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 95,853 | 79,859 | ||||
Allowance for loan losses | (862) | (963) | (859) | (428) | (359) | (231) |
Construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 86,164 | 21,839 | ||||
Allowance for loan losses | (1,035) | (415) | (316) | (773) | (757) | (724) |
Commercial business | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 99 | |||||
Allowance for loan losses | (1) | |||||
Leases | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 5,491 | 3,286 | ||||
Allowance for loan losses | (28) | (28) | (21) | |||
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 7,442 | 799 | ||||
Allowance for loan losses | $ (135) | $ (35) | $ (10) | $ (7) | $ (8) | $ (5) |
LOANS RECEIVABLE - Summary of45
LOANS RECEIVABLE - Summary of loans individually evaluated for impairment by loan segment (Details 1) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Allowance for Loan Losses: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 3,896 | 3,269 | ||||
Total ending allowance balance | 3,896 | $ 3,454 | 3,269 | $ 3,038 | $ 2,919 | $ 2,930 |
Loans: | ||||||
Individually evaluated for impairment | 16,945 | 19,429 | ||||
Collectively evaluated for impairment | 557,140 | 332,462 | ||||
Total loans | 574,085 | 351,891 | ||||
One-to-four family residential | ||||||
Allowance for Loan Losses: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 1,350 | 1,627 | ||||
Total ending allowance balance | 1,350 | 1,564 | 1,627 | 1,511 | 1,471 | 1,635 |
Loans: | ||||||
Individually evaluated for impairment | 5,031 | 5,553 | ||||
Collectively evaluated for impairment | 360,394 | 227,978 | ||||
Total loans | 365,425 | 233,531 | ||||
Multi-family residential | ||||||
Allowance for Loan Losses: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 122 | 137 | ||||
Total ending allowance balance | 122 | 135 | 137 | 43 | 58 | 66 |
Loans: | ||||||
Individually evaluated for impairment | 330 | 335 | ||||
Collectively evaluated for impairment | 13,380 | 12,143 | ||||
Total loans | 13,710 | 12,478 | ||||
Commercial real estate | ||||||
Allowance for Loan Losses: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 862 | 859 | ||||
Total ending allowance balance | 862 | 963 | 859 | 428 | 359 | 231 |
Loans: | ||||||
Individually evaluated for impairment | 2,881 | 3,154 | ||||
Collectively evaluated for impairment | 92,972 | 76,705 | ||||
Total loans | 95,853 | 79,859 | ||||
Construction and land development | ||||||
Allowance for Loan Losses: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 1,035 | 316 | ||||
Total ending allowance balance | 1,035 | 415 | 316 | 773 | 757 | 724 |
Loans: | ||||||
Individually evaluated for impairment | 8,703 | 10,288 | ||||
Collectively evaluated for impairment | 77,461 | 11,551 | ||||
Total loans | 86,164 | 21,839 | ||||
Commercial business | ||||||
Allowance for Loan Losses: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 1 | |||||
Total ending allowance balance | 1 | |||||
Loans: | ||||||
Individually evaluated for impairment | 99 | |||||
Collectively evaluated for impairment | ||||||
Total loans | 99 | |||||
Leases | ||||||
Allowance for Loan Losses: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 28 | 21 | ||||
Total ending allowance balance | 28 | 28 | 21 | |||
Loans: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 5,491 | 3,286 | ||||
Total loans | 5,491 | 3,286 | ||||
Consumer | ||||||
Allowance for Loan Losses: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 135 | 10 | ||||
Total ending allowance balance | 135 | 35 | 10 | 7 | 8 | 5 |
Loans: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 7,442 | 799 | ||||
Total loans | 7,442 | 799 | ||||
Unallocated | ||||||
Allowance for Loan Losses: | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 364 | 298 | ||||
Total ending allowance balance | $ 364 | $ 314 | $ 298 | $ 276 | $ 266 | $ 269 |
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 required (Details 2) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | ||
Impaired Loans with Specific Allowance - Related Allowance | ||
Impaired Loans with No Specific Allowance - Recorded Investment | 16,945 | 19,429 |
Total Impaired Loans - Recorded Investment | 16,945 | 19,429 |
Total impaired loans - Unpaid Principal Balance | 19,127 | 19,745 |
One-to-four family residential | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | ||
Impaired Loans with Specific Allowance - Related Allowance | ||
Impaired Loans with No Specific Allowance - Recorded Investment | 5,031 | 5,553 |
Total Impaired Loans - Recorded Investment | 5,031 | 5,553 |
Total impaired loans - Unpaid Principal Balance | 5,394 | 5,869 |
Multi-family residential | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | ||
Impaired Loans with Specific Allowance - Related Allowance | ||
Impaired Loans with No Specific Allowance - Recorded Investment | 330 | 335 |
Total Impaired Loans - Recorded Investment | 330 | 335 |
Total impaired loans - Unpaid Principal Balance | 330 | 335 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | ||
Impaired Loans with Specific Allowance - Related Allowance | ||
Impaired Loans with No Specific Allowance - Recorded Investment | 2,881 | 3,154 |
Total Impaired Loans - Recorded Investment | 2,881 | 3,154 |
Total impaired loans - Unpaid Principal Balance | 2,881 | 3,154 |
Construction and land development | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | ||
Impaired Loans with Specific Allowance - Related Allowance | ||
Impaired Loans with No Specific Allowance - Recorded Investment | 8,703 | 10,288 |
Total Impaired Loans - Recorded Investment | 8,703 | 10,288 |
Total impaired loans - Unpaid Principal Balance | $ 10,522 | 10,288 |
Commercial loans | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired Loans with Specific Allowance - Recorded Investment | ||
Impaired Loans with Specific Allowance - Related Allowance | ||
Impaired Loans with No Specific Allowance - Recorded Investment | 99 | |
Total Impaired Loans - Recorded Investment | 99 | |
Total impaired loans - Unpaid Principal Balance | $ 99 |
LOANS RECEIVABLE - Average reco
LOANS RECEIVABLE - Average recorded investment in impaired loans and related interest income recognized (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | $ 18,824 | $ 18,527 | $ 18,994 | $ 18,060 |
Income Recognized on Accrual Basis | 55 | 173 | 96 | 337 |
Income Recognized on Cash Basis | 33 | 29 | 70 | 135 |
One-to-four family residential | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 6,086 | 5,069 | 5,909 | 4,781 |
Income Recognized on Accrual Basis | 32 | 20 | 49 | 43 |
Income Recognized on Cash Basis | 33 | 29 | 58 | 59 |
Multi-family residential | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 330 | 345 | 332 | 348 |
Income Recognized on Accrual Basis | 6 | 12 | ||
Income Recognized on Cash Basis | ||||
Commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 2,801 | 3,703 | 2,919 | 3,725 |
Income Recognized on Accrual Basis | 17 | 27 | 35 | 42 |
Income Recognized on Cash Basis | 12 | 12 | ||
Construction and land development | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 9,607 | 9,410 | 9,834 | 9,206 |
Income Recognized on Accrual Basis | 126 | 252 | ||
Income Recognized on Cash Basis | $ 64 |
LOANS RECEIVABLE - Summary of c
LOANS RECEIVABLE - Summary of classes of loan portfolio in which formal risk weighting system is used (Details 4) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 574,085 | $ 351,891 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 365,425 | 233,531 |
Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 13,710 | 12,478 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 95,853 | 79,859 |
Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 86,164 | 21,839 |
Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 99 | |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 7,442 | 799 |
Risk Rating System | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 197,958 | 117,168 |
Risk Rating System | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,231 | 2,893 |
Risk Rating System | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 13,710 | 12,478 |
Risk Rating System | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 95,853 | 79,859 |
Risk Rating System | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 86,164 | 21,839 |
Risk Rating System | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 99 | |
Risk Rating System | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 183,379 | 99,979 |
Risk Rating System | Pass | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | ||
Risk Rating System | Pass | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 13,710 | 12,144 |
Risk Rating System | Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 92,208 | 76,185 |
Risk Rating System | Pass | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 77,461 | 11,551 |
Risk Rating System | Pass | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 99 | |
Risk Rating System | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 3,126 | 2,624 |
Risk Rating System | Special Mention | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,657 | 1,681 |
Risk Rating System | Special Mention | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | ||
Risk Rating System | Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,469 | 943 |
Risk Rating System | Special Mention | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | ||
Risk Rating System | Special Mention | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | ||
Risk Rating System | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 11,453 | 14,565 |
Risk Rating System | Substandard | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 574 | 1,212 |
Risk Rating System | Substandard | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 334 | |
Risk Rating System | Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,176 | 2,731 |
Risk Rating System | Substandard | Construction and land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 8,703 | 10,288 |
Risk Rating System | Substandard | Commercial business | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans |
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 5) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | $ 574,085 | $ 351,891 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 365,425 | 233,531 |
Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,491 | 3,286 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 7,442 | 799 |
Non Risk Rating System | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 376,127 | 234,723 |
Non Risk Rating System | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 363,194 | 230,638 |
Non Risk Rating System | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,491 | 3,286 |
Non Risk Rating System | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 7,442 | 799 |
Non Risk Rating System | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 369,749 | 230,479 |
Non Risk Rating System | Performing | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 356,816 | 226,394 |
Non Risk Rating System | Performing | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 5,491 | 3,286 |
Non Risk Rating System | Performing | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 7,442 | 799 |
Non Risk Rating System | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,378 | 4,244 |
Non Risk Rating System | Nonperforming | One-to-four family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 6,378 | 4,244 |
Non Risk Rating System | Nonperforming | Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | ||
Non Risk Rating System | Nonperforming | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans |
LOANS RECEIVABLE - Loan categor
LOANS RECEIVABLE - Loan categories of loan portfolio summarized by aging categories of performing loans and nonaccrual loans (Details 6) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 559,529 | $ 335,630 |
90 Days+ Past Due and Accruing | ||
Total Past Due and Accruing | 1,389 | 1,860 |
Total Loans | 574,085 | 351,891 |
Non- Accrual | 16,419 | 15,878 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,389 | 1,860 |
90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 13,167 | 14,401 |
One-to-four family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 361,265 | 228,904 |
90 Days+ Past Due and Accruing | ||
Total Past Due and Accruing | 1,034 | 1,860 |
Total Loans | 365,425 | 233,531 |
Non- Accrual | 6,378 | 4,244 |
One-to-four family residential | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,034 | 1,860 |
One-to-four family residential | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 3,126 | 2,767 |
Multi-family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 13,710 | 12,478 |
90 Days+ Past Due and Accruing | ||
Total Past Due and Accruing | ||
Total Loans | 13,710 | 12,478 |
Non- Accrual | ||
Multi-family residential | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | ||
Multi-family residential | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | ||
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 94,247 | 78,513 |
90 Days+ Past Due and Accruing | ||
Total Past Due and Accruing | 260 | |
Total Loans | 95,853 | 79,859 |
Non- Accrual | 1,346 | 1,346 |
Commercial real estate | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 260 | |
Commercial real estate | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,346 | 1,346 |
Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 77,469 | 11,551 |
90 Days+ Past Due and Accruing | ||
Total Past Due and Accruing | ||
Total Loans | 86,164 | 21,839 |
Non- Accrual | 8,695 | 10,288 |
Construction and land development | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | ||
Construction and land development | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 8,695 | 10,288 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 99 | |
90 Days+ Past Due and Accruing | ||
Total Past Due and Accruing | ||
Total Loans | 99 | |
Non- Accrual | ||
Commercial business | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | ||
Commercial business | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | ||
Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 5,402 | 3,286 |
90 Days+ Past Due and Accruing | ||
Total Past Due and Accruing | 89 | |
Total Loans | 5,491 | 3,286 |
Non- Accrual | ||
Leases | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 89 | |
Leases | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | ||
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 7,436 | 799 |
90 Days+ Past Due and Accruing | ||
Total Past Due and Accruing | 6 | |
Total Loans | 7,442 | 799 |
Non- Accrual | ||
Consumer | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 6 | |
Consumer | 90 Days + Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current |
LOANS RECEIVABLE - Activity in
LOANS RECEIVABLE - Activity in allowance (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | $ 3,454 | $ 2,919 | $ 3,269 | $ 2,930 |
Charge-offs | (1,948) | (1,948) | (11) | |
Recoveries | 25 | 44 | 25 | 44 |
Provision | 2,365 | 75 | 2,550 | 75 |
ALLL balance | 3,896 | 3,038 | 3,896 | 3,038 |
One- to four-family residential | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 1,564 | 1,471 | 1,627 | 1,635 |
Charge-offs | (113) | (113) | (11) | |
Recoveries | 25 | 25 | ||
Provision | (126) | 40 | (189) | (113) |
ALLL balance | 1,350 | 1,511 | 1,350 | 1,511 |
Multi-family residential | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 135 | 58 | 137 | 66 |
Charge-offs | ||||
Recoveries | ||||
Provision | (13) | (15) | (15) | (23) |
ALLL balance | 122 | 43 | 122 | 43 |
Commercial real estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 963 | 359 | 859 | 231 |
Charge-offs | ||||
Recoveries | ||||
Provision | (101) | 69 | 3 | 197 |
ALLL balance | 862 | 428 | 862 | 428 |
Construction and land development | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 415 | 757 | 316 | 724 |
Charge-offs | (1,819) | (1,819) | ||
Recoveries | 44 | 44 | ||
Provision | 2,439 | (28) | 2,538 | 5 |
ALLL balance | 1,035 | 773 | 1,035 | 773 |
Commercial business | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 1 | |||
Charge-offs | ||||
Recoveries | ||||
Provision | (1) | |||
ALLL balance | ||||
Leases | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 28 | 21 | ||
Charge-offs | ||||
Recoveries | ||||
Provision | 7 | |||
ALLL balance | 28 | 28 | ||
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 35 | 8 | 10 | 5 |
Charge-offs | (16) | (16) | ||
Recoveries | ||||
Provision | 116 | (1) | 141 | 2 |
ALLL balance | 135 | 7 | 135 | 7 |
Unallocated | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
ALLL balance | 314 | 266 | 298 | 269 |
Charge-offs | ||||
Recoveries | ||||
Provision | 50 | 10 | 66 | 7 |
ALLL balance | $ 364 | $ 276 | $ 364 | $ 276 |
LOANS RECEIVABLE (Detail Textua
LOANS RECEIVABLE (Detail Textuals) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)Loan | Mar. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for loan losses | $ 2,365,000 | $ 75,000 | $ 2,550,000 | $ 75,000 |
Number of Loans | Loan | 10 | |||
Pre-modification outstanding recorded investment | $ 6,900,000 | |||
Charge-offs | 1,948,000 | $ 1,948,000 | 11,000 | |
Nonperforming | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | Loan | 3 | |||
Pre-modification outstanding recorded investment | $ 4,900,000 | |||
Number of loans default | Loan | 1 | |||
Amount of loan concerns sufficiancy of cash flow | $ 1,400,000 | |||
Number of remaining loan default | Loan | 2 | |||
Amount of loan default | $ 3,500,000 | |||
Amount charged off in current quarter | 614,000 | |||
One- to four-family residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for loan losses | (126,000) | 40,000 | (189,000) | (113,000) |
Charge-offs | 113,000 | 113,000 | 11,000 | |
One- to four-family residential | Nonperforming | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Pre-modification outstanding recorded investment | $ 1,400,000 | |||
Number of loans default | Loan | 1 | |||
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for loan losses | (101,000) | 69,000 | $ 3,000 | 197,000 |
Charge-offs | ||||
Number of loans default | Loan | 1 | |||
Amount of loan default | $ 730,000 | |||
Construction and land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for loan losses | 2,439,000 | (28,000) | 2,538,000 | 5,000 |
Charge-offs | $ 1,819,000 | $ 1,819,000 | ||
Number of loans default | Loan | 2 | |||
Amount of loan default | $ 2,800,000 |
DEPOSITS - Major classification
DEPOSITS - Major classifications of deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Amount | ||
Money market deposit accounts | $ 87,107 | $ 55,552 |
Interest-bearing checking accounts | 54,763 | 34,984 |
Non interest-bearing checking accounts | 9,272 | 3,804 |
Passbook, club and statement savings | 107,335 | 70,924 |
Certificates maturing in six months or less | 125,124 | 97,418 |
Certificates maturing in more than six months | 211,509 | 126,519 |
Total deposits | $ 595,110 | $ 389,201 |
Percent | ||
Money market deposit accounts | 14.60% | 14.30% |
Interest-bearing checking accounts | 9.20% | 9.30% |
Non interest-bearing checking accounts | 1.60% | 0.70% |
Passbook, club and statement savings | 18.00% | 18.20% |
Certificates maturing in six months or less | 21.00% | 25.00% |
Certificates maturing in more than six months | 35.60% | 32.50% |
Total | 100.00% | 100.00% |
DEPOSITS (Detail Textuals)
DEPOSITS (Detail Textuals) - USD ($) $ in Millions | Mar. 31, 2017 | Sep. 30, 2016 |
Deposits [Abstract] | ||
Certificates of $250,000 and over | $ 27.9 | $ 17 |
ADVANCES FROM FEDERAL HOME LO55
ADVANCES FROM FEDERAL HOME LOAN BANK (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2016 | |
Advances from Federal Home Loan Banks [Abstract] | |||
Balance at quarter-end | $ 79,057 | $ 27,000 | $ 27,000 |
Average balance outstanding | 27,000 | 23,500 | |
Maximum month-end balance | $ 27,000 | $ 27,000 | |
Weight-average rate at period end | 1.00% | 1.00% | |
Weight-average rate during the period | 1.00% | 1.00% |
ADVANCES FROM FEDERAL HOME LO56
ADVANCES FROM FEDERAL HOME LOAN BANK (Details 1) $ in Thousands | 6 Months Ended | |
Mar. 31, 2017USD ($) | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Amount | $ 79,057 | |
Coupon | 2.15% | [1] |
Fixed Rate Advance Maturity Date 17-Nov-17 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Nov. 17, 2017 | |
Amount | $ 10,000 | |
Coupon | 1.21% | |
Call Date | Not Applicable | |
Fixed Rate -Amortizing Maturity Date 1-Dec-17 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Dec. 1, 2017 | |
Amount | $ 1,511 | |
Coupon | 1.16% | |
Call Date | Not Applicable | |
Fixed Rate -Advance Maturity Date 4-Dec-17 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Dec. 4, 2017 | |
Amount | $ 2,000 | |
Coupon | 1.15% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity Date 19-Mar-18 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Mar. 19, 2018 | |
Amount | $ 4,939 | |
Coupon | 2.53% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity Date 19-Mar-18 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Mar. 19, 2018 | |
Amount | $ 4,959 | |
Coupon | 2.13% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity Date 20-Jun-18 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Jun. 20, 2018 | |
Amount | $ 2,981 | |
Coupon | 1.86% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity Date 25-Jun-18 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Jun. 25, 2018 | |
Amount | $ 2,973 | |
Coupon | 2.09% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity Date 27-Aug-18 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Aug. 27, 2018 | |
Amount | $ 6,729 | |
Coupon | 4.15% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity Date 15-Nov-18 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Nov. 15, 2018 | |
Amount | $ 2,980 | |
Coupon | 1.89% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity Date 16-Nov-18 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Nov. 16, 2018 | |
Amount | $ 7,500 | |
Coupon | 1.40% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity Date 26-Nov-18 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Nov. 26, 2018 | |
Amount | $ 1,989 | |
Coupon | 2.35% | |
Call Date | Not Applicable | |
Fixed Rate -Advance Maturity Date 3-Dec-18 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Dec. 3, 2018 | |
Amount | $ 3,000 | |
Coupon | 1.54% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity Date 16-Aug-19 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Aug. 16, 2019 | |
Amount | $ 2,929 | |
Coupon | 2.66% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity Date 9-Oct-19 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Oct. 9, 2019 | |
Amount | $ 1,958 | |
Coupon | 2.54% | |
Call Date | Not Applicable | |
Fixed Rate - Amortizing Maturity Date 18-Nov-19 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Nov. 18, 2019 | |
Amount | $ 4,098 | |
Coupon | 1.53% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity 26-Nov-19 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Nov. 26, 2019 | |
Amount | $ 2,949 | |
Coupon | 1.81% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity 22-Jun-20 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Jun. 22, 2020 | |
Amount | $ 2,927 | |
Coupon | 2.64% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity 24-Jun-20 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Jun. 24, 2020 | |
Amount | $ 1,936 | |
Coupon | 2.85% | |
Call Date | Not Applicable | |
Fixed Rate -Advance Maturity Date 27-Jul-20 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Jul. 27, 2020 | |
Amount | $ 2,049 | |
Coupon | 1.38% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity 17-Aug-20 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Aug. 17, 2020 | |
Amount | $ 1,921 | |
Coupon | 3.06% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity 9-Oct-20 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Oct. 9, 2020 | |
Amount | $ 1,929 | |
Coupon | 2.92% | |
Call Date | Not Applicable | |
Fixed Rate -Advance Maturity Date 27-Jul-21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Jul. 27, 2021 | |
Amount | $ 249 | |
Coupon | 1.52% | |
Call Date | Not Applicable | |
Fixed Rate -Advance Maturity Date 28-Jul-21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Jul. 28, 2021 | |
Amount | $ 249 | |
Coupon | 1.48% | |
Call Date | Not Applicable | |
Fixed Rate Advance Maturity Date 28-Jul-21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Jul. 28, 2021 | |
Amount | $ 249 | |
Coupon | 1.42% | |
Call Date | Not Applicable | |
Fixed Rate -Advance Maturity Date 19-Aug-21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Aug. 19, 2021 | |
Amount | $ 249 | |
Coupon | 1.55% | |
Call Date | Not Applicable | |
Fixed Rate - Advance Maturity Date 7-Oct-21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Oct. 7, 2021 | |
Amount | $ 1,899 | |
Coupon | 3.19% | |
Call Date | Not Applicable | |
Fixed Rate Advance Maturity Date 12-Oct-21 | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Maturity Date | Oct. 12, 2021 | |
Amount | $ 1,905 | |
Coupon | 3.23% | |
Call Date | Not Applicable | |
[1] | Weighted average coupon rate |
ADVANCES FROM FEDERAL HOME LO57
ADVANCES FROM FEDERAL HOME LOAN BANK (Details Textuals) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2017USD ($)Loan | Mar. 31, 2016USD ($) | Mar. 31, 2016USD ($) | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Average balance outstanding | $ 27,000,000 | $ 23,500,000 | |
Interest rate swap | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Average balance outstanding | $ 20,000 | ||
Number of day federal home loan bank advances | Loan | 2 | ||
FHLB advance associated with an interest rate swap contract | $ 10,000 | ||
Weighted average effective cost | 117.00% |
DERIVATIVES (Details)
DERIVATIVES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||
Unrealized Gain | $ 582 | $ (202) |
Interest rate swap | ||
Derivative [Line Items] | ||
Notional Amount | $ 10,000 | $ 10,000 |
Pay Rate | 1.15% | 1.15% |
Receive Rate | 1 Month Libor | 1 Mth Libor |
Maturity Date | Apr. 6, 2021 | Apr. 6, 2021 |
Unrealized Gain | $ 250 | $ (92) |
Interest rate swap contract | ||
Derivative [Line Items] | ||
Notional Amount | $ 10,000 | $ 10,000 |
Pay Rate | 1.18% | 1.18% |
Receive Rate | 1 Month Libor | 1 Mth Libor |
Maturity Date | Jun. 13, 2021 | Jun. 13, 2021 |
Unrealized Gain | $ 260 | $ (103) |
Interest rate swap contract | ||
Derivative [Line Items] | ||
Notional Amount | $ 1,100 | $ 1,100 |
Pay Rate | 4.10% | 4.10% |
Receive Rate | 1 Month Libor +276 bp | 1 Mth Libor +276 bp |
Maturity Date | Aug. 1, 2026 | Aug. 1, 2026 |
Unrealized Gain | $ 72 | $ (7) |
DERIVATIVES (Detail Textuals)
DERIVATIVES (Detail Textuals) $ in Millions | Mar. 31, 2017USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest rate swap agreements outstanding amount | $ 21.1 |
INCOME TAXES - Items that gave
INCOME TAXES - Items that gave rise to significant portions of deferred income taxes (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 1,593 | $ 1,289 |
Nonaccrual interest | 292 | 163 |
Accrued vacation | 12 | 13 |
Capital loss carryforward | 378 | 378 |
Split dollar life insurance | 18 | 18 |
Post-retirement benefits | 93 | 96 |
Unrealized losses on available for sale securities | 860 | |
Goodwill | 2,042 | |
Unrealized losses on interest rate swaps | 69 | |
Employee benefit plans | 382 | 434 |
Total deferred tax assets | 5,670 | 2,460 |
Valuation allowance | (378) | (378) |
Total deferred tax assets, net of valuation allowance | 5,292 | 2,082 |
Deferred tax liabilities: | ||
Property | 423 | 423 |
Unrealized gains on available for sale securities | 500 | |
Unrealized gains on interest rate swaps | 198 | |
Miscellaneous | 12 | 12 |
Deferred loan fees | 455 | 578 |
Total deferred tax liabilities | 1,088 | 1,513 |
Net deferred tax assets | $ 4,204 | $ 569 |
INCOME TAXES (Detail Textuals)
INCOME TAXES (Detail Textuals) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $ 378 | $ 378 |
STOCK COMPENSATION PLANS - Summ
STOCK COMPENSATION PLANS - Summary of non-vested stock award activity (Details) - $ / shares | 1 Months Ended | 6 Months Ended | |
Aug. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Number of Shares | |||
Nonvested stock awards at October 1, 2016 | 172,788 | 241,428 | |
Granted | 12,500 | 17,128 | |
Forfeited | (36,762) | ||
Vested | (43,018) | (49,511) | |
Nonvested stock awards at the March 31, 2017 | 146,898 | 155,155 | |
Weighted Average Grant Date Fair Value | |||
Nonvested stock awards at October 1, 2016 | $ 12.03 | $ 11.74 | |
Granted | 17.43 | ||
Forfeited | 11.55 | ||
Vested | 11.61 | 11.47 | |
Nonvested stock awards at the March 31, 2017 | $ 12.78 | $ 11.87 |
STOCK COMPENSATION PLANS - Su63
STOCK COMPENSATION PLANS - Summary of status of stock options under Stock Option Plan (Details 1) - 2008 Option Plan and 2014 SIP - $ / shares | 6 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Number of Shares | ||
Outstanding at October 1, 2016 | 921,909 | 1,074,430 |
Granted | 22,828 | |
Exercised | (32,224) | (130,535) |
Forfeited | (93,939) | |
Outstanding at March 31, 2017 | 912,513 | 849,956 |
Exercisable at March 31, 2017 | 579,078 | 347,037 |
Weighted Average Exercise Price | ||
Outstanding at October 1, 2016 | $ 11.70 | $ 11.92 |
Granted | 11.43 | |
Exercised | 11.50 | 11.49 |
Forfeited | 11.55 | |
Outstanding at March 31, 2017 | 11.85 | 12.03 |
Exercisable at March 31, 2017 | $ 11.43 | $ 11.38 |
STOCK COMPENSATION PLANS (Detai
STOCK COMPENSATION PLANS (Detail Textuals) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jan. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2005 | Jan. 01, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
ESOP shares allocated to participant's accounts | 8,879 | 17,758 | ||||||
Compensation expense of ESOP | $ 421,000 | $ 265,000 | ||||||
Number of treasury share purchased | 1,811,010 | 1,499,265 | ||||||
Amount allocated to purchase treasury stock | $ 26,629,000 | $ 21,098,000 | ||||||
Employee Stock Ownership Plan ESOP Plan | ||||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||||
Number of common shares purchased under employee stock ownership plan (ESOP) | 30,100 | 255,564 | 427,057 | |||||
Aggregate cost of common stock purchased under employee stock ownership plan (ESOP) | $ 3,100,000 | $ 4,500,000 | ||||||
Number of shares held by ESOP | 468,156 | |||||||
ESOP shares allocated to participant's accounts | 243,734 | |||||||
Additional ESOP shares allocated to participant's accounts | 35,517 | |||||||
Compensation expense of ESOP | $ 139,000 | $ 265,000 | ||||||
Number of treasury share purchased | 303,115 | |||||||
Amount allocated to purchase treasury stock | $ 5,200,000 | |||||||
Number of shares allocated to remaining participants | 115,000 |
STOCK COMPENSATION PLANS (Det65
STOCK COMPENSATION PLANS (Detail Textuals 1) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2016 | Feb. 28, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares purchased by RRP trust | 42,791 | |||||
Vesting period of awards granted | 5 years | |||||
Number of shares granted | 12,500 | 17,128 | ||||
2008 Recognition and Retention Plan ("2008 RRP") | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares purchased by RRP trust | 213,528 | |||||
Value of shares purchased in open market by RRP trust | $ 2,500,000 | |||||
Average price per share of common stock purchased in the open market | $ 11.49 | $ 11.49 | ||||
Percentage of vesting per year | 20.00% | |||||
Vesting period of awards granted | 5 years | |||||
Number of shares granted | 7,473 | |||||
2014 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 3,027 | |||||
2014 Stock Incentive Plan | Restricted stock awards or units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of forfeit shares exceptional for award | 45,000 | |||||
Maximum number of shares awarded under the plan | 285,655 | |||||
Number of shares granted | 233,500 | 17,128 | ||||
2008 RRP and 2014 SIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares purchased by RRP trust | 587,112 | |||||
Recognized compensation expense | $ 145,000 | $ 115,000 | $ 280,000 | $ 243,000 | ||
Income tax benefit realized | 95,000 | $ 39,000 | 39,000 | $ 83,000 | ||
Additional compensation expense for shares awarded remained unrecognized | $ 1,300,000 | $ 1,300,000 |
STOCK COMPENSATION PLANS (Det66
STOCK COMPENSATION PLANS (Detail Textuals 2) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Aug. 31, 2016 | Feb. 28, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2010 | Sep. 30, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period of options | 5 years | |||||||||||
Number of shares purchased for award | 42,791 | |||||||||||
Number of shares granted | 12,500 | 17,128 | ||||||||||
Estimated fair value of options granted per share | $ 3.18 | $ 2.13 | $ 4.58 | $ 4.67 | $ 3.34 | $ 2.92 | $ 2.98 | |||||
Fair value, valuation method | Black-Scholes pricing model | Black-Scholes pricing model | Black-Scholes pricing model | |||||||||
Exercise price and fair value | $ 17.43 | $ 17.43 | $ 14.42 | $ 12.23 | ||||||||
Expected term | 7 years | 7 years | 7 years | |||||||||
Volatility rate | 14.40% | 13.82% | 38.16% | |||||||||
Expected interest rate | 2.22% | 1.36% | 1.62% | |||||||||
Expected yield | 0.69% | 0.80% | 0.98% | |||||||||
Unrecognized compensation expense for options | $ 1,400,000 | $ 1,400,000 | ||||||||||
Weighted average period for expense recognize | 3 years 1 month 6 days | |||||||||||
2008 Stock Option Plan (the "2008 Option Plan") | Stock Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of vesting and exercisable per year | 20.00% | |||||||||||
Vesting period of options | 5 years | |||||||||||
Exercisable period of options after grant date | 10 years | |||||||||||
Number of common stock available for issuance | 533,808 | 533,808 | ||||||||||
Number of vested options | 467,758 | |||||||||||
Number of shares purchased for award | 608,737 | |||||||||||
Number of shares granted | 18,866 | |||||||||||
2014 Stock Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares granted | 3,027 | |||||||||||
2014 Stock Incentive Plan | Stock Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares for issuance pursuant to options | 714,145 | 714,145 | ||||||||||
Number of shares purchased for award | 605,000 | |||||||||||
Number of shares granted | 8,634 | 608,737 | 22,828 | |||||||||
Weighted average remaining contractual term for options outstanding | 4 years 8 months 12 days | |||||||||||
2008 RRP and 2014 SIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares purchased for award | 587,112 | |||||||||||
Recognized compensation expense | $ 145,000 | $ 115,000 | $ 280,000 | $ 243,000 | ||||||||
2008 Option Plan and 2014 SIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares granted | 18,867 | |||||||||||
Recognized compensation expense | 138,000 | 112,000 | 268,000 | 248,000 | ||||||||
Tax benefit from stock-based compensation | $ 16,000 | $ 13,000 | $ 32,000 | $ 29,000 |
COMMITMENTS AND CONTINGENT LI67
COMMITMENTS AND CONTINGENT LIABILITIES (Detail Textuals) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Sep. 30, 2016 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Exposure related to loans sold to FHLB | $ 1,900 | |
Aggregate undisbursed portion of loans-in-process | 45,173 | $ 5,371 |
Loan Origination Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Exposure related to loans sold to FHLB | 13,900 | 9,900 |
Aggregate undisbursed portion of loans-in-process | $ 45,200 | $ 5,400 |
Loan Origination Commitments | Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Market interest rate on fixed and variable rate loans | 4.00% | 3.75% |
Loan Origination Commitments | Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Market interest rate on fixed and variable rate loans | 5.50% | 5.00% |
Unused lines of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Exposure related to loans sold to FHLB | $ 7,200 | $ 3,300 |
Letters of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Exposure related to loans sold to FHLB | $ 1,500 | $ 1,900 |
FAIR VALUE MEASUREMENT - Assets
FAIR VALUE MEASUREMENT - Assets measured at fair value on recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Assets: | |||
Assets, total | $ 190,690 | $ 138,694 | |
Level 1 | |||
Assets: | |||
Assets, total | 66 | 42 | |
Level 2 | |||
Assets: | |||
Assets, total | 190,042 | 138,652 | |
Level 3 | |||
Assets: | |||
Assets, total | |||
U.S. Government and agency obligations | |||
Assets: | |||
Assets, total | 20,495 | 21,024 | |
Mortgage-backed securities - U.S. Government agencies | |||
Assets: | |||
Assets, total | 132,792 | 91,575 | |
Corporate bonds | |||
Assets: | |||
Assets, total | 36,755 | 26,053 | |
FHLMC preferred stock | |||
Assets: | |||
Assets, total | 66 | 42 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Assets, total | 190,108 | 138,694 | |
Liabilities | |||
Liabilities, total | 202 | ||
Fair Value, Measurements, Recurring | Level 1 | |||
Assets: | |||
Assets, total | 66 | 42 | |
Liabilities | |||
Liabilities, total | |||
Fair Value, Measurements, Recurring | Level 2 | |||
Assets: | |||
Assets, total | 190,042 | 138,652 | |
Liabilities | |||
Liabilities, total | 202 | ||
Fair Value, Measurements, Recurring | Level 3 | |||
Assets: | |||
Assets, total | |||
Liabilities | |||
Liabilities, total | |||
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | |||
Assets: | |||
Assets, total | 20,945 | 21,024 | |
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Level 1 | |||
Assets: | |||
Assets, total | |||
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Level 2 | |||
Assets: | |||
Assets, total | 20,945 | 21,024 | |
Fair Value, Measurements, Recurring | U.S. Government and agency obligations | Level 3 | |||
Assets: | |||
Assets, total | |||
Fair Value, Measurements, Recurring | Mortgage-backed securities - U.S. Government agencies | |||
Assets: | |||
Assets, total | 132,792 | 91,575 | |
Fair Value, Measurements, Recurring | Mortgage-backed securities - U.S. Government agencies | Level 1 | |||
Assets: | |||
Assets, total | |||
Fair Value, Measurements, Recurring | Mortgage-backed securities - U.S. Government agencies | Level 2 | |||
Assets: | |||
Assets, total | 132,792 | 91,575 | |
Fair Value, Measurements, Recurring | Mortgage-backed securities - U.S. Government agencies | Level 3 | |||
Assets: | |||
Assets, total | |||
Fair Value, Measurements, Recurring | Corporate bonds | |||
Assets: | |||
Assets, total | 36,755 | 26,053 | |
Fair Value, Measurements, Recurring | Corporate bonds | Level 1 | |||
Assets: | |||
Assets, total | |||
Fair Value, Measurements, Recurring | Corporate bonds | Level 2 | |||
Assets: | |||
Assets, total | 36,755 | 26,053 | |
Fair Value, Measurements, Recurring | Corporate bonds | Level 3 | |||
Assets: | |||
Assets, total | |||
Fair Value, Measurements, Recurring | FHLMC preferred stock | |||
Assets: | |||
Assets, total | 66 | 42 | |
Fair Value, Measurements, Recurring | FHLMC preferred stock | Level 1 | |||
Assets: | |||
Assets, total | 66 | 42 | |
Fair Value, Measurements, Recurring | FHLMC preferred stock | Level 2 | |||
Assets: | |||
Assets, total | |||
Fair Value, Measurements, Recurring | FHLMC preferred stock | Level 3 | |||
Assets: | |||
Assets, total | |||
Fair Value, Measurements, Recurring | Interest rate swap contracts | |||
Assets: | |||
Assets, total | 582 | ||
Liabilities | |||
Liabilities, total | 202 | ||
Fair Value, Measurements, Recurring | Interest rate swap contracts | Level 1 | |||
Assets: | |||
Assets, total | |||
Liabilities | |||
Liabilities, total | |||
Fair Value, Measurements, Recurring | Interest rate swap contracts | Level 2 | |||
Assets: | |||
Assets, total | 582 | ||
Liabilities | |||
Liabilities, total | $ 202 | ||
Fair Value, Measurements, Recurring | Interest rate swap contracts | Level 3 | |||
Assets: | |||
Assets, total | |||
Liabilities | |||
Liabilities, total |
FAIR VALUE MEASUREMENT - Change
FAIR VALUE MEASUREMENT - Changes in level 3 assets measured at fair value (Details 1) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 16,945 | $ 19,429 |
Real estate owned | 192 | 581 |
Total | 17,137 | 20,010 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Real estate owned | ||
Total | ||
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Real estate owned | ||
Total | ||
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 16,945 | 19,429 |
Real estate owned | 192 | 581 |
Total | $ 17,137 | $ 20,010 |
FAIR VALUE MEASUREMENT - Valuat
FAIR VALUE MEASUREMENT - Valuation processes used to determine nonrecurring fair value measurements categorized within level 3 (Details 2) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Sep. 30, 2016 | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Fair Value | $ 17,137 | $ 20,010 | |
Level 3 | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Fair Value | 17,137 | 20,010 | |
Level 3 | Impaired loan | Property Appraisals Valuation Technique | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Fair Value | $ 16,945 | $ 19,429 | |
Valuation Technique | [1],[2] | Property appraisals | Property appraisals |
Unobservable Input | [3] | Management discount for selling costs, property type and market volatility | Management discount for selling costs, property type and market volatility |
Level 3 | Impaired loan | Property Appraisals Valuation Technique | Minimum | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Management discount rate | 6.00% | 6.00% | |
Level 3 | Impaired loan | Property Appraisals Valuation Technique | Maximum | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Management discount rate | 46.00% | 46.00% | |
Level 3 | Impaired loan | Property Appraisals Valuation Technique | Weighted Average | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Management discount rate | 10.00% | 10.00% | |
Level 3 | Real estate owned | Property Appraisals Valuation Technique | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Fair Value | $ 192 | $ 581 | |
Valuation Technique | [1],[2] | Property appraisals | Property appraisals |
Unobservable Input | [3] | Management discount for selling costs, property type and market volatility | Management discount for selling costs, property type and market volatility |
Level 3 | Real estate owned | Property Appraisals Valuation Technique | Weighted Average | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Management discount rate | 10.00% | 10.00% | |
[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] | Includes qualitative adjustments by management and estimated liquidation expenses. | ||
[3] | 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. |
FAIR VALUE MEASUREMENT - Asse71
FAIR VALUE MEASUREMENT - Assets measured at fair value on a non-recurring basis and the adjustments to the carrying value (Details 3) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 |
Assets: | ||||
Cash and cash equivalents | $ 13,058 | $ 12,440 | $ 7,330 | $ 11,272 |
Certificates of deposit | 1,853 | 1,853 | ||
Investment and mortgage-backed securities available for sale | 190,108 | 138,694 | ||
Investment and mortgage-backed securities held to maturity | 58,197 | 39,971 | ||
Loans receivable, net | 521,885 | 344,948 | ||
Accrued interest receivable | 2,626 | 1,928 | ||
Other real estate owned | 192 | 581 | ||
Federal Home Loan Bank stock | 5,699 | 2,463 | ||
Bank owned life insurance | 27,709 | 13,055 | ||
Interest rate swap contracts | 582 | |||
Liabilities: | ||||
Checking accounts | 64,035 | 38,788 | ||
Money market deposit accounts | 87,107 | 55,552 | ||
Passbook, club and statement savings accounts | 107,335 | 70,924 | ||
Certificates of deposit | 336,633 | 223,937 | ||
Advances from FHLB short-term | 27,000 | 20,000 | ||
Advances from FHLB long-term | 79,057 | 30,638 | $ 27,000 | |
Accrued interest payable | 790 | 1,403 | ||
Advances from borrowers for taxes and insurance | 2,789 | 1,748 | ||
Interest rate swap contracts | 202 | |||
Fair Value | ||||
Assets: | ||||
Cash and cash equivalents | 13,058 | 12,440 | ||
Certificates of deposit | 1,853 | 1,853 | ||
Investment and mortgage-backed securities available for sale | 190,108 | 138,694 | ||
Investment and mortgage-backed securities held to maturity | 56,540 | 40,700 | ||
Loans receivable, net | 524,148 | 344,100 | ||
Accrued interest receivable | 2,626 | 1,928 | ||
Other real estate owned | 192 | |||
Federal Home Loan Bank stock | 5,699 | 2,463 | ||
Bank owned life insurance | 27,709 | 13,055 | ||
Interest rate swap contracts | 582 | |||
Liabilities: | ||||
Checking accounts | 64,035 | 38,788 | ||
Money market deposit accounts | 87,107 | 55,552 | ||
Passbook, club and statement savings accounts | 107,335 | 70,924 | ||
Certificates of deposit | 338,846 | 225,383 | ||
Advances from FHLB short-term | 27,000 | 20,000 | ||
Advances from FHLB long-term | 78,271 | 30,222 | ||
Accrued interest payable | 790 | 1,403 | ||
Advances from borrowers for taxes and insurance | 2,789 | 1,748 | ||
Interest rate swap contracts | 202 | |||
Level 1 | ||||
Assets: | ||||
Cash and cash equivalents | 13,058 | 12,440 | ||
Certificates of deposit | 1,853 | 1,853 | ||
Investment and mortgage-backed securities available for sale | 66 | 42 | ||
Investment and mortgage-backed securities held to maturity | ||||
Loans receivable, net | ||||
Accrued interest receivable | 2,626 | 1,928 | ||
Other real estate owned | 192 | |||
Federal Home Loan Bank stock | 5,699 | 2,463 | ||
Bank owned life insurance | 27,709 | 13,055 | ||
Interest rate swap contracts | ||||
Liabilities: | ||||
Checking accounts | 64,035 | 38,788 | ||
Money market deposit accounts | 87,107 | 55,552 | ||
Passbook, club and statement savings accounts | 107,335 | 70,924 | ||
Certificates of deposit | ||||
Advances from FHLB short-term | 27,000 | 20,000 | ||
Advances from FHLB long-term | ||||
Accrued interest payable | 790 | 1,403 | ||
Advances from borrowers for taxes and insurance | 2,789 | 1,748 | ||
Interest rate swap contracts | ||||
Level 2 | ||||
Assets: | ||||
Cash and cash equivalents | ||||
Certificates of deposit | ||||
Investment and mortgage-backed securities available for sale | 190,042 | 138,652 | ||
Investment and mortgage-backed securities held to maturity | 56,540 | 40,700 | ||
Loans receivable, net | ||||
Accrued interest receivable | ||||
Other real estate owned | ||||
Federal Home Loan Bank stock | ||||
Bank owned life insurance | ||||
Interest rate swap contracts | 582 | |||
Liabilities: | ||||
Checking accounts | ||||
Money market deposit accounts | ||||
Passbook, club and statement savings accounts | ||||
Certificates of deposit | ||||
Advances from FHLB short-term | ||||
Advances from FHLB long-term | ||||
Accrued interest payable | ||||
Advances from borrowers for taxes and insurance | ||||
Interest rate swap contracts | 202 | |||
Level 3 | ||||
Assets: | ||||
Cash and cash equivalents | ||||
Certificates of deposit | ||||
Investment and mortgage-backed securities available for sale | ||||
Investment and mortgage-backed securities held to maturity | ||||
Loans receivable, net | 524,148 | 344,100 | ||
Accrued interest receivable | ||||
Other real estate owned | ||||
Federal Home Loan Bank stock | ||||
Bank owned life insurance | ||||
Interest rate swap contracts | ||||
Liabilities: | ||||
Checking accounts | ||||
Money market deposit accounts | ||||
Passbook, club and statement savings accounts | ||||
Certificates of deposit | 338,846 | 225,383 | ||
Advances from FHLB short-term | ||||
Advances from FHLB long-term | 78,271 | 30,222 | ||
Accrued interest payable | ||||
Advances from borrowers for taxes and insurance | ||||
Interest rate swap contracts |
FAIR VALUE MEASUREMENT (Detail
FAIR VALUE MEASUREMENT (Detail Textuals) $ in Millions | Mar. 31, 2017USD ($) |
Level 2 | |
Financing Receivable, Impaired [Line Items] | |
Collateral dependent impaired loans, fair value | $ 16.9 |
GOODWILL AND OTHER INTANGIBLE73
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2017 | Mar. 31, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Balance, Goodwill | ||
Additions/Adjustments | 7,163 | |
Balance, Goodwill | 7,163 | $ 7,163 |
Balance, Total | ||
Additions/Adjustments | 7,985 | |
Amortization | 37 | 37 |
Balance, Total | 7,948 | 7,948 |
Core Deposits [Member] | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Balance | ||
Additions/Adjustments | 822 | |
Amortization | (37) | |
Balance | $ 785 | $ 785 |
Amortization Period | 10 years |
GOODWILL AND OTHER INTANGIBLE74
GOODWILL AND OTHER INTANGIBLE ASSETS (Details 1) $ in Thousands | Mar. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 75 |
2,018 | 142 |
2,019 | 127 |
2,020 | 112 |
Thereafter | $ 366 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Consideration paid: | ||
Common stock issued (1,274,197 shares) at a fair value per share of $17.12 per share. | $ 21,827 | |
Liabilities assumed: | ||
Goodwill resulting from the acquisition | 7,163 | |
Polonia Bancorp | ||
Consideration paid: | ||
Common stock issued (1,274,197 shares) at a fair value per share of $17.12 per share. | 21,814 | |
Cash for common stock exchanged | 18,944 | |
Cash in lieu of fractional shares | 1 | |
Total Consideration | 40,759 | |
Assets acquired: | ||
Cash and due from banks | 47,901 | |
Investments available for sale | 42,164 | |
Loans | 160,157 | |
Premises and equipment | 6,902 | |
Deferred taxes | 3,921 | |
Bank-owned life insurance | 4,316 | |
Core deposit intangible | 822 | |
Other assets | 5,802 | |
Total assets | 271,985 | |
Liabilities assumed: | ||
Deposits | 172,243 | |
FHLB advances short-term | 7,000 | |
FHLB advances long -term | 50,232 | |
Other liabilities | 8,914 | |
Total liabilities | 238,389 | |
Net assets acquired | 33,596 | |
Goodwill resulting from the acquisition | $ 7,163 |
BUSINESS COMBINATIONS (Parenthe
BUSINESS COMBINATIONS (Parentheticals) (Details) - Polonia Bancorp | 6 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Business Acquisition [Line Items] | |
Number of shares issued in business combination (in shares) | shares | 1,274,197 |
Shares price in business combination | $ / shares | $ 17.12 |
BUSINESS COMBINATIONS (Details
BUSINESS COMBINATIONS (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Polonia Common Stock: | ||
Purchase consideration assigned to Polonia shares exchanged for Prudential Common Stock | $ 21,827 | |
Estimated adjustments to reflect liabilities assumed at fair value: | ||
Goodwill resulting from merger | $ 7,163 | |
Polonia Bancorp | ||
Polonia Common Stock: | ||
Total Shares of Common Stock Outstanding | 3,416,311 | |
Common Stock Issued Cap | 1,708,155 | |
Shares Redeemed for Cash Cap | 1,708,156 | |
Prudential Common Stock Issued (conversion rate 0.7460) | 1,274,197 | |
Prudential Closing Price at December 31, 2016 | $ 17.12 | |
Business Acquisition Per Share Cash Consideration | $ 11.09 | |
Purchase consideration assigned to Polonia shares exchanged for Prudential Common Stock | $ 21,814 | |
Cash Paid to Polonia for Polonia shares | 18,943 | |
Cash Paid for fractional shares | 1 | |
Net Assets Acquired | ||
Polonia stockholders' equity | 35,412 | |
Core deposit intangible assets | 822 | |
Estimated adjustments to reflect assets acquired at fair value: | ||
Investment securities | (781) | |
Portfolio loans | (4,643) | |
Allowance for loan and lease losses | 1,002 | |
Premises | 3,049 | |
Other Assets | (74) | |
Deferred Taxes | 934 | |
Total fair value adjustment to assets acquired | 309 | |
Estimated adjustments to reflect liabilities assumed at fair value: | ||
Time deposits | 894 | |
Borrowings | 1,232 | |
Total fair value adjustment to liabilities assumed | 2,126 | |
Total net assets acquired | 33,595 | |
Goodwill resulting from merger | $ 7,163 |
BUSINESS COMBINATIONS (Detail78
BUSINESS COMBINATIONS (Details 2) - Polonia Bancorp - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | ||
Business Acquisition [Line Items] | |||||
Net interest income | $ 5,299 | $ 5,534 | $ 8,947 | $ 10,387 | |
Provision for loan and leases losses | 2,365 | 75 | 2,550 | 75 | |
Net interest income after provision for loan and lease losses | 2,934 | 5,459 | 6,397 | 10,312 | |
Non-interest income | 518 | 530 | 876 | 941 | |
Non-interest expenses | 6,763 | 5,137 | 9,483 | 10,403 | |
(Loss) income before income taxes | (3,311) | 852 | (2,210) | 850 | |
Income tax (benefit) expense | (1,171) | 312 | (801) | (29) | |
Net (loss) income | $ (2,140) | $ 540 | $ (1,409) | $ 879 | |
Per share data | |||||
Weighed average basic shares outstanding | 8,639,908 | 8,655,077 | 9,253,738 | 8,655,077 | |
Dilutive shares | 270,973 | 246,791 | |||
Adjusted weighted-average dilutive shares | [1] | 8,639,908 | 8,926,050 | 9,253,738 | 8,901,868 |
Basic (loss) earnings per common share | $ 0.28 | $ 0.06 | $ (0.28) | $ 0.10 | |
Earnings per common share, diluted | $ 0.28 | $ 0.06 | $ (0.28) | $ 0.10 | |
[1] | Weighted-average basis shares outstanding for both periods reflected are the Company's weighted-average shares plus the 1,274,197, shares that were issued as consideration for the Merger. The dilutive shares reflect the Company's estimated diluted shares for the period. |
BUSINESS COMBINATIONS (Parent79
BUSINESS COMBINATIONS (Parentheticals) (Details 2) | 6 Months Ended |
Mar. 31, 2017shares | |
Polonia Bancorp | |
Business Acquisition [Line Items] | |
Number of shares issued in business combination | 1,274,197 |
BUSINESS COMBINATIONS (Detail80
BUSINESS COMBINATIONS (Details Textuals) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2017 | Mar. 31, 2017USD ($)$ / sharesshares | |
Core Deposits [Member] | ||
Business Acquisition [Line Items] | ||
Amortization Period | 10 years | |
Polonia Bancorp | ||
Business Acquisition [Line Items] | ||
Business Acquisitions Exchange Ratio | 0.7460 | 0.7460 |
Business Acquisition Per Share Cash Consideration | $ / shares | $ 11.09 | |
Percentage stock consideration in business acquisition | 50.00% | |
Percentage cash consideration in business acquisition | 50.00% | |
Cash consideration for merger | $ | $ 18,944 | |
Number of shares issued in business combination | shares | 1,274,197 |