UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2023

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

 

Commission File Number 000-51726

 

Magyar Bancorp, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware 20-4154978
(State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number)
   
400 Somerset Street, New Brunswick, New Jersey 08901
(Address of Principal Executive Office) (Zip Code)

 

(732) 342-7600

(Issuer’s Telephone Number including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading symbol Name of each exchange on which registered
Common Stock, $.01 per share MGYR The NASDAQ Global Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑       No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑       No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Securities Exchange Act:

 

Large accelerated filer Accelerated filer     
Non-accelerated filer  Smaller reporting company
Emerging growth company    

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐       No

 

The number of shares outstanding of the issuer's common stock at February 1, 2024 was 6,653,933.

 

 

MAGYAR BANCORP, INC.

 

Form 10-Q Quarterly Report

 

Table of Contents

 

 

PART I. FINANCIAL INFORMATION

 

    Page Number
     
Item 1. Consolidated Financial Statements 1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 25
Item 3. Quantitative and Qualitative Disclosures About Market Risk 30
Item 4. Controls and Procedures 30
     
PART II. OTHER INFORMATION
     
Item 1. Legal Proceedings 31
Item 1A. Risk Factors 31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31
Item 3. Defaults Upon Senior Securities 31
Item 4. Mine Safety Disclosures 31
Item 5. Other Information 31
Item 6. Exhibits 32
     
Signature Pages 33

 

 

 

PART I. FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

 

MAGYAR BANCORP, INC. AND SUBSIDIARY

Consolidated Balance Sheets

(In Thousands, Except Share and Per Share Data)

 

   December 31,   September 30, 
   2023   2023 
   (Unaudited)     
Assets        
Cash  $3,128   $3,179 
Interest earning deposits with banks   47,989    69,353 
Total cash and cash equivalents   51,117    72,532 
           
Investment securities - available for sale, at fair value   12,273    10,125 
Investment securities - at amortized cost (fair value of $75,508 and $73,728 at December 31, 2023 and September 30, 2023, respectively)   84,333    85,835 
Federal Home Loan Bank of New York stock, at cost   2,254    2,286 
Loans receivable   728,560    697,400 
Allowance for credit losses   (7,683)   (8,330)
Bank owned life insurance   18,126    18,030 
Accrued interest receivable   4,585    4,337 
Premises and equipment, net   12,534    13,339 
Other real estate owned ("OREO")   328    328 
Other assets   10,312    11,410 
           
Total assets  $916,739   $907,292 
           
Liabilities and Stockholders' Equity          
Liabilities          
Deposits  $763,548   $755,453 
Escrowed funds   3,723    3,494 
Borrowings   28,796    29,515 
Accrued interest payable   656    443 
Accounts payable and other liabilities   13,477    13,597 
           
Total liabilities   810,200    802,502 
           
Stockholders' equity          
Preferred stock: $.01 Par Value, 500,000 shares authorized; at December 31, 2023 and September 30, 2023, none issued   
    
 
Common stock: $.01 Par Value, 14,000,000 shares authorized; 7,097,825 shares issued; 6,654,952 and 6,674,184 shares outstanding          
at December 31, 2023 and September 30, 2023, respectively, at cost
   71    71 
Additional paid-in capital   62,962    62,801 
Treasury stock: 442,873 and 423,641 shares at December 31, 2023 and September 30, 2023, respectively, at cost   (5,554)   (5,362)
Unearned Employee Stock Ownership Plan shares   (3,047)   (3,097)
Retained earnings   53,456    52,166 
Accumulated other comprehensive loss   (1,349)   (1,789)
           
Total stockholders' equity   106,539    104,790 
           
Total liabilities and stockholders' equity  $916,739   $907,292 

 

The accompanying notes are an integral part of these consolidated financial statements.

  

1 

 

MAGYAR BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

(In Thousands, Except Share and Per Share Data)

 

   Three Months Ended 
   December 31, 
   2023   2022 
   (Unaudited) 
Interest and dividend income          
Loans, including fees  $10,082   $7,959 
Investment securities          
Taxable   1,406    504 
Tax-exempt   14    14 
Federal Home Loan Bank of New York stock   55    24 
Total interest and dividend income   11,557    8,501 
           
Interest expense          
Deposits   4,077    1,474 
Borrowings   236    136 
Total interest expense   4,313    1,610 
           
Net interest and dividend income   7,244    6,891 
           
Provision for credit losses- loans   384    317 
Provision for credit losses- commitments   97    
 
           
Net interest and dividend income after provision for credit losses   6,763    6,574 
           
Other income          
Service charges   303    245 
Income on bank owned life insurance   95    95 
Interest rate swap fees   
    57 
Gains on sales of premises and equipment   60    
 
Other operating income   22    20 
Gains on sales of loans   129    180 
Total other income   609    597 
           
Other expenses          
Compensation and employee benefits   2,847    2,621 
Occupancy expenses   790    761 
Professional fees   226    179 
Data processing expenses   140    146 
Director fees and benefits   224    201 
Marketing and business development   97    126 
FDIC deposit insurance premiums   103    54 
Other expenses   593    493 
Total other expenses   5,020    4,581 
Income before income tax expense   2,352    2,590 
Income tax expense   700    780 
Net income  $1,652   $1,810 
           
Earnings per share - basic  $0.26   $0.28 
Earnings per share - diluted  $0.26   $0.28 
Weighted average shares outstanding - basic   6,387,010    6,456,525 
Weighted average shares outstanding - diluted   6,387,010    6,459,446 

 

The accompanying notes are an integral part of these consolidated financial statements. 

2 

 

MAGYAR BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income

(In Thousands)

 

   Three Months Ended 
   December 31 
   2023   2022 
   (Unaudited) 
Net income  $1,652   $1,810 
Other comprehensive income          
Unrealized gains on securities available for sale   584    206 
Other comprehensive income, before tax   584    206 
Deferred income tax effect   (144)   (50)
Total other comprehensive income  $440   $156 
Total comprehensive income  $2,092   $1,966 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

3 

 

 MAGYAR BANCORP, INC. AND SUBSIDIARY

 Consolidated Statements of Changes in Stockholders' Equity

 For the Three Months Ended December 31, 2023 and 2022

 (In Thousands, Except for Share and Per-Share Amounts)

 

                           Accumulated     
   Common Stock   Additional       Unearned       Other     
   Shares   Par   Paid-In   Treasury   ESOP   Retained   Comprehensive     
   Outstanding   Value   Capital   Stock   Shares   Earnings   Loss   Total 
   (Unaudited) 
Balance, September 30, 2023   6,674,184   $71   $62,801   $(5,362)  $(3,097)  $52,166   $(1,789)  $104,790 
Net income       
    
    
    
    1,652    
    1,652 
Dividends paid on common stock ($0.11 per share)       
    
    
    
    (716)   
    (716)
Effect of adopting ASU 2016-13                       354    
    354 
Other comprehensive income       
    
    
    
    
    440    440 
ESOP shares allocated       
        
    50    
    
    50 
Purchase of treasury stock   (19,232)   
    
    (192)   
    
    
    (192)
Stock-based compensation expense       
    161    
    
    
    
    161 
Balance, December 31, 2023   6,654,952   $71   $62,962   $(5,554)  $(3,047)  $53,456   $(1,349)  $106,539 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

                           Accumulated     
   Common Stock   Additional       Unearned       Other     
   Shares   Par   Paid-In   Treasury   ESOP   Retained   Comprehensive     
   Outstanding   Value   Capital   Stock   Shares   Earnings   Loss   Total 
   (Unaudited) 
Balance, September 30, 2022   6,745,128   $71   $63,734   $(5,793)  $(3,169)  $45,773   $(2,114)  $98,502 
Net income       
    
    
    
    1,810    
    1,810 
Dividends paid on common stock ($0.11 per share)       
    
    
    
    (744)   
    (744)
Other comprehensive income       
    
    
    
    
    156    156 
ESOP shares allocated       
    17    
    24    
    
    41 
Purchase of treasury stock   (2,194)   
    
    (27)   
    
    
    (27)
Stock-based compensation expense       
    180    
    
    
    
    180 
Balance, December 31, 2022   6,742,934   $71   $63,931   $(5,820)  $(3,145)  $46,839   $(1,958)  $99,918 

 

The accompanying notes are an integral part of these consolidated financial statements.

4 

 

MAGYAR BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows

(In Thousands)

 

   For the Three Months Ended 
   December 31, 
   2023   2022 
   (Unaudited) 
Operating activities          
Net income  $1,652   $1,810 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation expense   217    208 
Premium amortization on investment securities, net   20    43 
Provision for credit losses   481    317 
Originations of SBA loans held for sale   (1,613)   (1,825)
Proceeds from the sales of SBA loans   1,741    2,005 
Gains on sale of loans   (129)   (180)
Gains on the sale of premises and equipment   (60)   
 
ESOP compensation expense   50    41 
Stock-based compensation expense   161    180 
Deferred income tax expense (benefit)   221    (237)
Increase in accrued interest receivable   (248)   (348)
Increase in surrender value of bank owned life insurance   (95)   (95)
Decrease in other assets   733    160 
Increase in accrued interest payable   213    77 
Decrease in accounts payable and other liabilities   (120)   (821)
Net cash provided by operating activities   3,224    1,335 
           
Investing activities          
Net increase in loans receivable   (31,934)   (46,554)
Purchases of investment securities held-to-maturity   (2,000)   
 
Purchases of investment securities available-for-sale   (1,953)   
 
Principal repayments on investment securities held-to-maturity   3,487    992 
Principal repayments on investment securities available-for-sale   384    209 
Purchases of premises and equipment, net   (128)   (10)
Proceeds from the sale of land   776    
 
Investment in other real estate owned   
    (11)
Purchase of Federal Home Loan Bank stock   (76)   (2,582)
Redemption of Federal Home Loan Bank stock   108    1,923 
Net cash used in investing activities   (31,336)   (46,033)
Financing activities          
Net increase in deposits   8,095    8,350 
Net increase in escrowed funds   229    (39)
Proceeds from long-term advances   1,690    3,000 
Repayments of long-term advances   (2,409)   
 
Net change in short-term advances       11,100 
Cash dividends paid on common stock   (716)   (744)
Purchase of treasury stock   (192)   (27)
Net cash provided by financing activities   6,697    21,640 
Net decrease in cash and cash equivalents   (21,415)   (23,058)
Cash and cash equivalents, beginning of period   72,532    30,936 
           
Cash and cash equivalents, end of period  $51,117   $7,878 
           
Supplemental disclosures of cash flow information          
Cash paid for          
Interest  $4,100   $1,533 
Income taxes  $
   $
 
Non-cash operating activities          
Adoption of ASU 2016-13  $354   $
 

 

The accompanying notes are an integral part of these consolidated financial statements.

5 

 

 MAGYAR BANCORP, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Unaudited)

 

 

NOTE A – BASIS OF PRESENTATION

 

The consolidated financial statements include the accounts of Magyar Bancorp, Inc. (the “Company”), its wholly owned subsidiary, Magyar Bank (the “Bank”), and the Bank’s wholly owned subsidiaries Magyar Service Corporation, Hungaria Urban Renewal, LLC, and Magyar Investment Company. All material intercompany transactions and balances have been eliminated. The Company prepares its consolidated financial statements on the accrual basis and in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). The unaudited information furnished herein reflects all adjustments (consisting of normal recurring accruals) that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented.

 

Operating results for the three months ended December 31, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2024. The September 30, 2023 information has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by US GAAP for complete consolidated financial statements.

 

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of available-for-sale investment securities, the valuation of other real estate owned (“OREO”), and the assessment of realizability of deferred income tax assets.

 

The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2023 for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued.

 

 

NOTE B - RECENT ACCOUNTING PRONOUNCEMENTS

 

In connection with the preparation of quarterly and annual reports in accordance with the Securities and Exchange Commission’s (“SEC”) Securities Exchange Act of 1934, SEC Staff Accounting Bulletin Topic 11.M requires the disclosure of the impact that recently issued accounting standards will have on consolidated financial statements when they are adopted in the future.

 

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326), which changed the impairment model for most financial assets. This update was intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses (“ACL”) should reflect management's current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be affected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. With certain exceptions, transition to the new requirements will be through a cumulative-effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This update is effective for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.

 

6 

 

The Company adopted ASU 2016-13 on October 1, 2023 using the modified retrospective approach for all financial assets measured at amortized cost, including loans, held-to-maturity debt securities, available-for-sale debt securities and unfunded commitments. The Company recorded a cumulative effect increase to retained earnings of $492,000 ($346,000 net of taxes), which was comprised of a $1,032,000 ($725,000 net of tax) increase related to loans and $540,000 ($379,000 net of tax) decrease related to unfunded commitments. The Company determined that there was no impact to retained earnings related to held-to-maturity securities as a result of adopting this guidance. The results reported for periods beginning on or after October 1, 2023 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable accounting standards.

 

The impact of the change from the incurred loss model to the current expected credit loss model is included in the following table:

 

   October 1, 2023 
       Adoption     
   Pre-adoption   Impact   As Reported 
   (In thousands) 
Assets            
ACL on debt securities held-to-maturity  $
   $
   $
 
ACL on loans               
One-to-four family residential   1,259    7    1,266 
Commercial real estate   5,277    (589)   4,688 
Construction   472    (55)   417 
Home equity lines of credit   207    (87)   120 
Commercial business   939    (133)   806 
Other   176    (175)   1 
                
Liabilities               
ACL on unfunded commitments   
    540    540 
Total  $8,330   $(492)  $7,838 

 

Allowance for Credit Losses on Loans

 

The Company maintains its allowance for credit losses (“ACL”) at a level that management believes to be appropriate to absorb estimated credit losses as of the date of the Consolidated Statement of Financial Condition. The Company established its allowance in accordance with the guidance included in Accounting Standards Codification 326, Financial Instruments – Credit Losses (“ASC 326”). The ACL is a valuation reserve established and maintained by charges against income. Loans, or portions thereof, are charged-off against the ACL when they are deemed uncollectible. The ACL is an estimate of expected credit losses that considers our historical loss experience, the weighted average expected lives of loans, current economic conditions and forecasts of future economic conditions. The determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The ACL is measured on a collective (pool) basis when similar characteristics exist. The Company’s loan portfolio is segmented by loan types that have similar risk characteristics and behave similarly during economic cycles.

 

Historical credit loss experience is the basis for the estimate of expected credit losses. We apply our historical loss rates to pools of loans with similar risk characteristics using the Weighted-Average Remaining Maturity (“WARM”) method. The remaining contractual life of the pools of loans with similar risk characteristics is adjusted by expected scheduled payments and prepayments. After consideration of the historical loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information. Our reasonable and supportable forecast adjustment is based on a regional economic indicator obtained from the United States Government Publishing Office. The Company selected eight qualitative metrics which were correlated with the Bank and its peer group’s historical loss patterns. The eight qualitative metrics include: changes in lending policies and procedures, changes in national and local economic conditions as well as business conditions, changes in the nature, complexity, and volume of the portfolio, changes in the experience, ability, and depth of lenders and lending management, changes in the volume and severity of past due and classified loans, changes in the value of collateral securing loans, changes in or the existence of credit concentrations, and changes in the legal and/or regulatory landscape. The adjustments are weighted for relevance before applying to each pool of loans. Each quarter, management reviews the recommended adjustment factors and applies any additional adjustments based on current conditions.

 

7 

 

The Company has elected to exclude $4.3 million of accrued interest receivable on loans as of December 31, 2023 from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. Accrued interest on loans is reported in the accrued interest receivable line on the consolidated statements of financial condition.

 

The ACL for individual loans begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other pooled loans and, therefore, should be individually assessed. We individually evaluate all commercial loans that meet the following criteria: (1) when it is determined that foreclosure is probable, (2) substandard, doubtful and nonperforming loans when repayment is expected to be provided substantially through the operation or sale of the collateral, or (3) when it is determined by management that a loan does not share similar risk characteristics with other loans. Credit loss estimates are calculated based on the following three acceptable methods for measuring the ACL: (1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral when the loan is collateral dependent. Our individual loan evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent. Collateral values are reduced to consider expected disposition costs when appropriate. A charge-off is recorded when the estimated fair value of the loan is less than the loan balance.

 

Allowance for Credit Losses on Unfunded Loan Commitments

 

The Company estimates expected credit losses over the contractual period in which the Bank is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Bank. The allowance for credit losses on unfunded loan commitments is included in accounts payable and other liabilities in the Company’s Statement of Financial Condition and is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur, the amount of funding that will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

 

Allowance for Credit Losses on Held-to-Maturity Securities

 

The Company accounts for its held-to-maturity securities in accordance with Accounting Standards Codification (ASC) 326-20, Financial Instruments – Credit Loss – Measured at Amortized Cost, which requires that the Company measure expected credit losses on held-to-maturity debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current economic conditions and reasonable and supportable forecasts.

 

The Company classifies its held-to-maturity debt securities into the following major security types: obligations of U.S. government agencies, obligations of U.S. government-sponsored enterprises, private label mortgage-backed securities, obligations of state and political subdivisions and corporate securities. Credit ratings of held-to-maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis. Based on the credit ratings of our held-to-maturity securities and our historical experience of no losses, the Company determined that an allowance for credit losses on its’ held-to-maturity portfolio is not required.

 

Accrued interest receivable on held-to-maturity debt securities totaled $215 thousand as of December 31, 2023 and is included within accrued interest receivable on the Company’s Consolidated Statement of Financial Condition. This amount is excluded from the estimate of expected credit losses. Generally, held-to-maturity debt securities are classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When held-to-maturity debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed against interest income.

 

Allowance for Credit Losses on Available-for-Sale Securities

 

The Company measures expected credit losses on available-for-sale debt securities when the Bank intends to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the amortized cost basis of the security is written down to fair value through income. For available-for-sale debt securities that do not meet the previously mentioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

 

8 

 

The ACL on available-for-sale debt securities is included within the recorded balance of securities available-for-sale on the Consolidated Statements of Financial Condition. Changes in the allowance for credit losses are recorded within provision for credit losses on the Consolidated Statements of Income. Losses are charged against the allowance when the Company believes the collectability of an available-for-sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met.

 

Accrued interest receivable on available-for-sale debt securities totaled $26 thousand as of December 31, 2023 and is included within accrued interest receivable on the Company’s Consolidated Statement of Financial Condition. This amount is excluded from the estimate of expected credit losses. Generally, available-for-sale debt securities are classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When available-for-sale debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed against interest income.

 

 

NOTE C - CONTINGENCIES

 

The Company, from time to time, is a party to routine litigation that arises in the normal course of business. In the opinion of management, the resolution of this litigation, if any, would not have a material adverse effect on the Company’s consolidated financial position or results of operations as presented in this report.

 

 

NOTE D - EARNINGS PER SHARE

 

The following table presents a calculation of basic and diluted earnings per share for the three months ended December 31, 2023 and 2022. Basic and diluted earnings per share were calculated by dividing net income by the weighted-average number of shares outstanding for the periods.

 

   For the Three Months 
   Ended December 31, 
   2023   2022 
   (Dollars in thousands, except share and per share data) 
         
Income applicable to common shares  $1,652   $1,810 
Weighted average common shares outstanding- basic   6,387,010    6,456,525 
Potential diliutive common stock equivalents   
    2,921 
Weighted average common shares outstanding- diluted   6,387,010    6,459,446 
Earnings per share - basic  $0.26   $0.28 
Earnings per share - diluted  $0.26   $0.28 

 

Options to purchase 293,200 shares of common stock at a weighted average strike price of $12.58 and 124,320 shares of restricted shares at a weighted average price of $12.63 were outstanding at December 31, 2023 but were not included in the calculation of diluted EPS because they were anti-dilutive. Options to purchase 293,200 shares of common stock at a weighted average strike price of $12.58 and 156,400 shares of restricted shares at a weighted average price of $12.63 were outstanding at December 31, 2022.

 

 

NOTE E – STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM

 

On August 25, 2022, the Company adopted the 2022 Equity Compensation Plan which provided for grants of up to 547,400 shares to be allocated between incentive and non-qualified stock options and restricted stock awards to officers, employees and directors of the Company and Magyar Bank. At December 31, 2023, 293,200 options and 124,320 shares of restricted stock had been awarded from the plan.

 

The following is a summary of the status of the Company’s stock option activity and related information for the three months ended December 31, 2023:

 

9 

 

   Shares   Weighted
Average
Exercise Price
   Weighted
Average
Remaining
Contractual Life
in Years
   Aggregate
Intrinsic
Value
 
                 
Balance at September 30, 2023   293,200   $12.58    8.98   $
 
Granted   
    
    
    
 
Exercised   
    
    
    
 
Forfeited   
    
    
    
 
Expired   
    
    
    
 
Balance at December 31, 2023   293,200   $12.58    8.73   $
 
                     
Exercisable at December 31, 2023   58,640   $12.58    8.73   $
 

 

The following is a summary of the status of the Company’s non-vested restricted shares for the three months ended December 31, 2023:

 

   Shares   Weighted
Average Grant
Date Fair Value
 
Balance at September 30, 2023   124,320   $12.63 
Granted   
    
 
Vested   
    
 
Forfeited   
    
 
Balance at December 31, 2023   124,320   $12.63 

 

Stock option and stock award expenses included with compensation expense were $63,000 and $98,000 for the three months ended December 31, 2023 and $69,000 and $111,000 for the three months ended December 31, 2022. At December 31, 2023, total compensation cost not yet recognized for the Company’s unvested stock options and stock awards was $2.4 million. The Company had no other stock-based compensation plans as of December 31, 2023 except as disclosed below.

 

On December 8, 2022, the Company announced the authorization of fourth stock repurchase plan pursuant to which the Company intends to repurchase up to an additional 5% of its outstanding shares, or up to 337,146 shares, under which 120,062 shares had been repurchased at an average price of $11.51 through December 31, 2023. Under this stock repurchase program, 217,084 shares of the 337,146 shares authorized remained available for repurchase as of December 31, 2023. The Company’s intended use of the repurchased shares is for general corporate purposes. The Company held treasury stock shares totaling 442,873 at December 31, 2023. The timing of the repurchases will depend on certain factors, including but not limited to, market conditions and prices, the Company’s liquidity requirements and alternative uses of capital.

 

The Company has an Employee Stock Ownership Plan ("ESOP") for the benefit of employees who meet certain eligibility requirements. The ESOP trust purchases shares of common stock in the open market using proceeds of a loan from the Company. The loan is secured by shares of the Company’s stock. The Bank makes cash contributions to the ESOP on an annual basis sufficient to enable the ESOP to make the required loan payments to the Company. As the debt is repaid, shares are released as collateral and allocated to qualified employees. Accordingly, the shares pledged as collateral are reported as unearned ESOP shares in the Consolidated Balance Sheets. The Company accounts for its ESOP in accordance with FASB ASC Topic 718, “Employer’s Accounting for Employee Stock Ownership Plans.” As shares are released from collateral, the Company reports compensation expense equal to the current market price of the shares, and the shares become outstanding for earnings per share computations.

 

In connection with the Company’s second-step stock offering during its fiscal year ending September 30, 2021, the ESOP trustees purchased 312,800 shares of the Company’s common stock for $3.4 million, reflecting an average cost per share of $10.77. The ESOP loan bears a fixed interest rate of 3.25% with principal and interest payable annually in equal installments over 30 years.

 

10 

 

At December 31, 2023, ESOP shares allocated to participants totaled 170,335. Unallocated ESOP shares held in suspense totaled 290,313 with an aggregate fair value of $3.3 million. The Company's contribution expense for the ESOP was $50,000 and $41,000 for the three months ended December 31, 2023 and 2022, respectively.

 

 

NOTE F – OTHER COMPREHENSIVE INCOME (LOSS)

 

Comprehensive income (loss) includes net income as well as certain other items which result in a change to equity during the period. The Company recorded no reclassification adjustments during the three months ended December 31, 2023 and 2022. The components of other comprehensive income (loss) and the related income tax effects are as follows:

 

   Three Months Ended December 31, 
   2023   2022 
       Tax   Net of       Tax   Net of 
   Before Tax   (Benefit)   Tax   Before Tax   (Benefit)   Tax 
   Amount   Expense   Amount   Amount   Expense   Amount 
   (In thousands) 
Unrealized holding gain (loss) arising during period on:                              
Available-for-sale investments  $584   $(144)  $440   $206   $(50)  $156 
Other comprehensive income (loss), net  $584   $(144)  $440   $206   $(50)  $156 

 

 

(a) All amounts are net of tax. Related income tax expense or benefit calculated using an income tax rate approximating 25% for available-for-sale investments.

 

 

NOTE G – FAIR VALUE DISCLOSURES

 

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The securities available-for-sale and the Company’s derivative assets and liabilities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as held-to-maturity securities, mortgage servicing rights, loans receivable and OREO. These non-recurring fair value adjustments involve the application of lower-of-cost-or-market accounting or write-downs of individual assets.

 

In accordance with ASC 820, the Company groups its assets and liabilities at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:

 

  Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets.
     
  Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market.
     
  Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability.

 

The Company based its fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

 

The following is a description of valuation methodologies used for assets measured at fair value on a recurring basis.

 

11 

 

Securities available-for-sale

The securities available-for-sale portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income/loss in stockholders’ equity. The securities available-for-sale portfolio consists of U.S government-sponsored mortgage-backed securities. The fair values of these securities are obtained from an independent nationally recognized pricing service. An independent pricing service provides the Company with prices which are categorized as Level 2, as quoted prices in active markets for identical assets are generally not available for the securities in the Company’s portfolio. Various modeling techniques are used to determine pricing for Company’s mortgage-backed securities, including option pricing and discounted cash flow models. The inputs to these models include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data.

 

Derivatives

Magyar Bank executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. The fair values of such derivatives are based on valuation models from a third party using current market terms (including interest rates and fees), the remaining terms of the agreements and the credit worthiness of the counter party as of the measurement date (Level 2).

 

The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a recurring basis.

 

December 31, 2023  Total   Level 1   Level 2   Level 3 
Assets:  (In thousands) 
Securities available for sale:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $95   $
   $95   $
 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   12,178    
    12,178    
 
Total securities available for sale  $12,273   $
   $12,273   $
 
Derivative assets   1,961    
    1,961    
 
Total assets  $14,234   $
   $14,234   $
 
                     
Liabilities:                    
Derivative liabilities  $1,961   $
   $1,961   $
 
Total Liabilities  $1,961   $
   $1,961   $
 
                     
September 30, 2023                    
Assets:                    
Securities available for sale:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $92   $
   $92   $
 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   10,033    
    10,033    
 
Total securities available for sale  $10,125   $
   $10,125   $
 
Derivative assets   2,579    
    2,579    
 
Total assets  $12,704   $
   $12,704   $
 
                     
Liabilities:                    
Derivative liabilities  $2,579   $
   $2,579   $
 
Total Liabilities  $2,579   $
   $2,579   $
 

 

The following is a description of valuation methodologies used for assets measured at fair value on a non-recurring basis.

 

Collateral Dependent Loans

Collateral dependent loans are measured and reported at fair value through specific allocations of the allowance for credit losses based on the fair value of the underlying collateral.

 

The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a non-recurring basis at December 31, 2023 and September 30, 2023.

 

12 

 

   Total   Level 1   Level 2   Level 3 
At December 31, 2023  (In thousands) 
                 
Collateral dependent loans  $777   $
   $
   $777 
Total  $777   $
   $
   $777 
                     
                     
At September 30, 2023                    
                     
Impaired loans  $777   $
   $
   $777 
Total  $777   $
   $
   $777 

 

The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Company has utilized Level 3 inputs to determine fair value:

 

Quantitative Information about Level 3 Fair Value Measurements

(Dollars in thousands)

 

   Fair Value   Valuation      
December 31, 2023  Estimate   Techniques  Unobservable Input  Range (Weighted Average)
               
Collateral dependent loans  $777   Appraisal of collateral (1)  Appraisal adjustments (2)  -50% to -8.0% (-12.0%)

 

              
   Fair Value   Valuation      
September 30, 2023  Estimate   Techniques  Unobservable Input  Range (Weighted Average)
               
Impaired loans  $777   Appraisal of collateral (1)  Appraisal adjustments (2)  -50% to -8.0% (-19.4%)

 

(1)Fair value is generally determined through independent appraisals for the underlying collateral, which generally include 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.

 

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments carried at cost or amortized cost as of December 31, 2023 and September 30, 2023.  For short-term financial assets such as cash and cash equivalents and accrued interest receivable, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as interest-bearing demand, NOW, and money market savings deposits, the carrying amount is a reasonable estimate of fair value due to these products being payable on demand and having no stated maturity.

 

13 

 

   Carrying   Fair   Fair Value Measurement Placement 
   Value   Value   (Level 1)   (Level 2)   (Level 3) 
   (In thousands) 
December 31, 2023                         
Financial instruments - assets                         
Investment securities held to maturity  $84,333   $75,508   $
   $75,508   $
 
Loans   728,560    703,158    
    
    703,158 
                          
Financial instruments - liabilities                         
Certificates of deposit including retirement certificates   112,463    110,530    
    110,530    
 
Borrowings   28,796    27,930    
    27,930    
 
                          
September 30, 2023                         
Financial instruments - assets                         
Investment securities held-to-maturity  $85,835   $73,728   $
   $73,728   $
 
Loans   689,070    664,331    
    
    664,331 
                          
Financial instruments - liabilities                         
Certificates of deposit including retirement certificates   104,668    101,216    
    101,216    
 
Borrowings   29,515    28,177    
    28,177    
 

 

 

NOTE H - INVESTMENT SECURITIES

 

The following table summarizes the amortized cost and fair values of securities classified as available-for-sale and held-to-maturity at December 31, 2023:

 

       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
December 31, 2023  Cost   Gains   Losses   Value 
   (In thousands) 
Securities available-for-sale:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $103   $
   $(8)  $95 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   13,551    39    (1,412)   12,178 
Total securities available-for-sale  $13,654   $39   $(1,420)  $12,273 
Securities held-to-maturity:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $4,986   $
   $(677)  $4,309 
Mortgage-backed securities - commercial   2,484    
    (22)   2,462 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed-securities - residential   47,199    
    (6,229)   40,970 
Debt securities   22,999    6    (1,378)   21,627 
Private label mortgage-backed securities - residential   203    
    (10)   193 
Obligations of state and political subdivisions   3,462    5    (324)   3,143 
Corporate securities   3,000    
    (196)   2,804 
Total securities held-to-maturity  $84,333   $11   $(8,836)  $75,508 
Total investment securities  $97,987   $50   $(10,256)  $87,781 

 

The Company monitors the credit quality of held-to-maturity debt securities, primarily through their credit ratings by nationally recognized statistical ratings organizations, on a quarterly basis. At December 31, 2023, there were no non-performing held-to-maturity debt securities and no allowance for credit losses were required. The majority of the investment securities are explicitly or implicitly guaranteed by the United States government, and any estimate of expected credit losses would be insignificant to the Company. The following table summarizes the amortized cost of held-to-maturity debt securities at December 31, 2023, aggregated by credit quality indicator:

 

14 

 

   Credit Rating 
   AAA/AA/A   BBB/BB/B   Non-rated 
December 31, 2023  (In thousands) 
Securities held-to-maturity:               
Obligations of U.S. government agencies:               
Mortgage-backed securities - residential  $4,986   $
   $
 
Mortgage-backed securities - commercial   2,484    
    
 
Obligations of U.S. government-sponsored enterprises:               
Mortgage backed securities - residential   47,199    
    
 
Debt securities   22,999    
    
 
Private label mortgage-backed securities - residential   
    
    203 
Obligations of state and political subdivisions   3,462    
    
 
Corporate securities   
    3,000    
 
Totals  $81,130   $3,000   $203 

 

The contractual maturities of debt securities, municipal bonds and certain information regarding mortgage-backed securities at December 31, 2023 are summarized in the following table:

 

   December 31, 2023 
   Amortized   Fair 
   Cost   Value 
   (In thousands) 
Due within 1 year  $4,000   $3,966 
Due after 1 but within 5 years   20,526    19,315 
Due after 5 but within 10 years   4,935    4,293 
Due after 10 years   
    
 
Total debt securities   29,461    27,574 
           
Mortgage backed securities:          
Residential   66,042    57,745 
Commercial   2,484    2,462 
Total  $97,987   $87,781 

 

The following table summarizes the amortized cost and fair values of securities classified as available-for-sale and held-to-maturity at September 30, 2023:

15 

 

       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
September 30, 2023  Cost   Gains   Losses   Value 
   (In thousands) 
Securities available-for-sale:                    
Obligations of U.S. government agencies:                    
Mortgage backed securities - residential  $106   $
   $(14)  $92 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   11,984    
    (1,951)   10,033 
Total securities available for sale  $12,090   $
   $(1,965)  $10,125 
Securities held-to-maturity:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $5,070   $
   $(850)  $4,220 
Mortgage-backed securities - commercial   2,509    
    (16)   2,493 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage backed securities - residential   48,086    
    (8,480)   39,606 
Debt securities   23,497    
    (1,947)   21,550 
Private label mortgage-backed securities - residential   207    
    (12)   195 
Obligations of state and political subdivisions   3,466    
    (605)   2,861 
Corporate securities   3,000    
    (197)   2,803 
Total securities held to maturity  $85,835   $
   $(12,107)  $73,728 
Total investment securities  $97,925   $
   $(14,072)  $83,853 

 

As of December 31, 2023 investment securities having an estimated fair value of approximately $12.2 million were pledged to secure public deposits.

 

 

NOTE I – CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE

 

The Company recognizes an allowance for credit losses on debt securities in earnings through a provision for credit losses while noncredit-related impairment on debt securities not expected to be sold are recognized in other comprehensive income.

 

The Company reviews its investment portfolio on a quarterly basis for indications of credit losses. This review includes analyzing the extent to which the fair value has been lower than the cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and the intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in the market. The Company evaluates its intent and ability to hold debt securities based upon its investment strategy for the particular type of security and its cash flow needs, liquidity position, capital adequacy and interest rate risk position. In addition, the risk of future credit losses may be influenced by prolonged recession in the U.S. economy, changes in real estate values and interest deferrals.

 

Investment securities with fair values greater than their amortized cost contain unrealized gains. Investment securities with fair values less than their amortized cost contain unrealized losses. Details of available-for-sale securities with unrealized losses at December 31, 2023 are as follows:

 

       Less Than 12 Months   12 Months Or Greater   Total 
   Number of   Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
   Securities   Value   Losses   Value   Losses   Value   Losses 
December 31, 2023  (Dollars in thousands)
Obligations of U.S. government agencies:                                   
Mortgage-backed securities - residential   1   $
   $
   $95   $(8)  $95   $(8)
Obligations of U.S. government-sponsored enterprises                                   
Mortgage-backed securities - residential   9    1,879    (9)   7,929    (1,403)   9,808    (1,412)
Total   10   $1,879   $(9)  $8,024   $(1,411)  $9,903   $(1,420)

 

16 

 

Prior to the adoption of ASU 2016-13, details of our entire investment portfolio were required to be disclosed. Accordingly, details of our held-to-maturity and available-for-sale investment securities with unrealized losses at September 30, 2023 were as follows:

 

       Less Than 12 Months   12 Months Or Greater   Total 
   Number of   Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
   Securities   Value   Losses   Value   Losses   Value   Losses 
September 30, 2023  (Dollars in thousands)
Obligations of U.S. government agencies:                                   
Mortgage-backed securities - residential   6   $
   $
   $4,312   $(864)  $4,312   $(864)
Mortgage-backed securities - commercial   2    1,926    (14)   567    (2)   2,493    (16)
Obligations of U.S. government-sponsored enterprises                                   
Mortgage-backed securities - residential   50    4,938    (49)   44,485    (10,382)   49,423    (10,431)
Debt securities   12    
    
    21,550    (1,947)   21,550    (1,947)
Private label mortgage-backed securities residential   1    
    
    195    (12)   195    (12)
Obligations of state and political subdivisions   7    789    (43)   2,072    (562)   2,861    (605)
Corporate securities   1    
    
    2,803    (197)   2,803    (197)
Total   79   $7,653   $(106)  $75,984   $(13,966)  $83,637   $(14,072)

 

The investment securities listed above currently have fair values less than amortized cost and therefore contain unrealized losses. The Company evaluated these securities and determined that the decline in value was primarily related to fluctuations in the interest rate environment and were not related to any company or industry specific event.

 

The Company anticipates full recovery of amortized costs with respect to these securities. The Company does not intend to sell these securities and has determined that it is not more likely than not that the Company would be required to sell these securities prior to maturity or market price recovery. Management has considered factors regarding credit losses and determined that there are no allowance for credit loss was required as of December 31, 2023.

 

 

NOTE J – LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR CREDIT LOSSES

 

Loans receivable, net were comprised of the following:

 

   December 31,   September 30, 
   2023   2023 
   (In thousands) 
         
One-to-four family residential  $234,156   $237,683 
Commercial real estate   407,346    389,134 
Construction and land   34,641    21,853 
Home equity loans and lines of credit   24,069    16,983 
Commercial business   27,043    30,194 
Other   2,239    2,359 
Total loans receivable   729,494    698,206 
Net deferred loan costs   (934)   (806)
Total loans receivable, net  $728,560   $697,400 

 

The segments of the Company’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The residential mortgage loan segment is further disaggregated into two classes: first lien, amortizing term loans, and the combination of second lien amortizing term loans and home equity lines of credit. The commercial loan segment is further disaggregated into three classes: loans secured by multifamily structures, loans secured by owner-occupied commercial structures, and loans secured by non-owner occupied nonresidential properties. The construction loan segment consists primarily of developers or investors for the purpose of acquiring, developing and constructing residential or commercial structures and to a lesser extent one-to-four family residential construction loans made to individuals for the acquisition of and/or construction on a lot or lots on which a residential dwelling is to be built. Construction loans to developers and investors have a higher risk profile because the ultimate buyer, once development is completed, is generally not known at the time of the loan. The commercial business loan segment consists of loans made for the purpose of financing the activities of commercial customers and consists of revolving lines of credit and loans partially guaranteed by the U.S. Small Business Administration. The consumer loan segment consists primarily of stock-secured installment loans, but also includes unsecured personal loans and overdraft lines of credit connected with customer deposit accounts.

 

17 

 

Management uses a ten point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. All loans greater than three months past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category.

 

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process with several layers of internal and external oversight.  Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as severe delinquency, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. The Company’s Asset Review Committee performs monthly reviews of all commercial relationships internally rated 6 (“Watch”) or worse.  Confirmation of the appropriate risk grade is performed by an external loan review company that semi-annually reviews and assesses loans within the portfolio.  Generally, the external consultant reviews commercial relationships greater than $500,000 and/or criticized relationships greater than $250,000. Detailed reviews, including plans for resolution, are performed on loans classified as Substandard on a monthly basis. 

 

The following table presents the classes of the loan portfolio by origination year summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful for loans subject to the Company’s internal risk rating system and by performing status for all other loans as of December 31, 2023.

18 

 

                           Revolving Loans     
   December 31, 2023   Amortized   Converted     
   Term Loans Amortized Cost Basis by Origination Fiscal Year   Cost Basis   to Term   Total 
   2024   2023   2022   2021   2020   Prior             
   (In thousands) 
One-to-four family residential                                             
Performing  $7,180   $43,224   $33,060   $27,899   $31,288   $91,353   $
   $
   $234,004 
Non-performing   
    
    
    
    
    152    
    
    152 
Total  $7,180   $43,224   $33,060   $27,899   $31,288   $91,505   $
   $
   $234,156 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Commercial real estate                                             
Pass  $18,235   $82,558   $68,224   $66,529   $30,007   $131,540   $6,373   $1,540   $405,006 
Special Mention   
    
    
    
    
    116    
    
    116 
Substandard   
    
    2,224    
    
    
    
    
    2,224 
Doubtful   
    
    
    
    
    
    
    
    
 
Total  $18,235   $82,558   $70,448   $66,529   $30,007   $131,656   $6,373   $1,540   $407,346 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Construction and land                                             
Pass  $10,368   $12,297   $2,351   $
   $1,761   $4,665   $725   $
   $32,167 
Special Mention   
    
    
    
    
    
    
    
    
 
Substandard   
    
    
    
    
    2,474    
    
    2,474 
Doubtful   
    
    
    
    
    
    
    
    
 
Total  $10,368   $12,297   $2,351   $
   $1,761   $7,139   $725   $
   $34,641 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Home equity loans and lines of credit                                             
Performing  $724   $1,678   $1,657   $342   $277   $1,438   $17,953   $
   $24,069 
Non-performing   
    
    
    
    
    
    
    
    
 
Total  $724   $1,678   $1,657   $342   $277   $1,438   $17,953   $
   $24,069 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Commercial business                                             
Pass  $1,030   $542   $2,685   $2,047   $946   $3,390   $16,403   $
   $27,043 
Special Mention   
    
    
    
    
    
    
    
    
 
Substandard   
    
    
    
    
    
    
    
    
 
Doubtful   
    
    
    
    
    
    
    
    
 
Total  $1,030   $542   $2,685   $2,047   $946   $3,390   $16,403   $
   $27,043 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Other                                             
Performing  $
   $
   $65   $1   $13   $1,793   $367   $
   $2,239 
Non-performing   
    
    
    
    
    
    
    
    
 
Total  $
   $
   $65   $1   $13   $1,793   $367   $
   $2,239 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 

 

Information presented in the table above is not required for periods prior to the adoption of ASU 2016-13. The following table presents more comparable information of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the Bank’s internal risk rating system as of September 30, 2023.

 

       Special             
   Pass   Mention   Substandard   Doubtful   Total 
   (In thousands) 
September 30, 2023                         
One-to-four family residential  $236,876   $
   $807   $
   $237,683 
Commercial real estate   386,794    116    2,224    
    389,134 
Construction   19,379    
    2,474    
    21,853 
Home equity lines of credit   16,983    
    
    
    16,983 
Commercial business   30,194    
    
    
    30,194 
Other   2,359    
    
    
    2,359 
Total  $692,585   $116   $5,505   $
   $698,206 

19 

 

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 past due. The Bank was not accruing interest on any loans delinquent greater than 90 days. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans for the periods presented:

 

       30-59   60-89         
       Days   Days   90 Days +   Total 
   Current   Past Due   Past Due   Past Due   Loans 
   (In thousands) 
December 31, 2023                         
One-to-four family residential  $232,710   $1,056   $238   $152   $234,156 
Commercial real estate   404,315    690    116    2,225    407,346 
Construction   32,167    
    
    2,474    34,641 
Home equity lines of credit   24,069    
    
    
    24,069 
Commercial business   26,404    639    
    
    27,043 
Other   2,239    
    
    
    2,239 
Total  $721,904   $2,385   $354   $4,851   $729,494 

  

       30-59   60-89         
       Days   Days   90 Days +   Total 
   Current   Past Due   Past Due   Past Due   Loans 
   (In thousands) 
September 30, 2023                         
One-to four-family residential  $236,729   $
   $568   $386   $237,683 
Commercial real estate   386,794    
    116    2,224    389,134 
Construction   19,379    
    
    2,474    21,853 
Home equity lines of credit   16,983    
    
    
    16,983 
Commercial business   30,047    147    
    
    30,194 
Other   2,359    
    
    
    2,359 
Total  $692,291   $147   $684   $5,084   $698,206 

 

The following tables present our non-accrual loans and the related allowance for credit loss by loan type as of December 31, 2023 and the non-accrual loans and specific reserves by loan type as of September 30, 2023.

 

   Non-   Allowance for 
   Accrual   Credit Loss 
   (In  thousands) 
December 31, 2023          
One-to-four family residential  $152   $
 
Commercial real estate   2,225    
 
Construction and land   2,474    
 
Home loans and lines of credit   
    
 
Commercial business   
    
 
Total  $4,851   $
 

 

20 

 

   Non-   Specific 
   Accrual   Reserve 
   (In  thousands) 
September 30, 2023          
One-to four-family residential  $386   $
 
Commercial real estate   2,224    
 
Construction and land   2,474    
 
Home equity lines of credit   
    
 
Commercial business   
    
 
Other   
    
 
Total  $5,084   $
 

 

The following table identifies our non-performing, collateral dependent loans by collateral type as of December 31, 2023:

 

   December 31, 
   2023 
   (In thousands) 
One- to four-family residential  $152 
Commercial real estate   2,225 
Land   2,474 
Total  $4,851 

 

The Company’s adoption of ASU 2016-13 eliminated the requirement to disclose impaired loans. The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2023:

 

           Impaired         
           Loans with         
   Impaired Loans with   No Specific         
   Specific Allowance   Allowance   Total Impaired Loans 
                   Unpaid 
   Recorded   Related   Recorded   Recorded   Principal 
   Investment   Allowance   Investment   Investment   Balance 
September 30, 2023  (In thousands) 
                     
One-to four-family residential  $
   $
   $2,031   $2,031   $2,031 
Commercial real estate   
    
    2,969    2,969    2,969 
Construction   
    
    2,474    2,474    2,539 
Commercial business   
    
    147    147    147 
Total impaired loans  $
   $
   $7,621   $7,621   $7,686 

 

The following table presents the average recorded investment in impaired loans and the interest income recognized on impaired loans for the three months ended December 31, 2022.

 

21 

 

   Three Months Ended 
   December 31, 2022 
   (In thousands) 
     
One-to-four family residential  $1,447 
Commercial real estate   1,269 
Construction   2,835 
Commercial business   203 
Average investment in impaired loans  $5,754 
      
Interest income recognized on     
an accrual basis on impaired loans     
One-to-four family residential  $20 
Commercial real estate   13 
Commercial business   2 
Total  $35 

 

An allowance for credit losses (“ACL”) is maintained to absorb losses from the loan portfolio. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ACL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ACL. Since loans individually evaluated for impairment are promptly written down to their fair value, typically there is no portion of the ACL for loans individually evaluated for impairment.

 

ASU 2016-13 requires estimated credit losses on loans to be determined based on an expected life of loan model, as compared to an incurred loss model (in effect for periods prior to October 1, 2023).  Accordingly, the allowance for losses disclosures subsequent to October 1, 2023 are not always comparable to prior dates. In addition, certain new disclosures required under ASU 2016-13 are not applicable to prior periods.  As a result, the following tables present disclosures separately for each period, where appropriate.  New disclosures required under ASU 2016-13 are only shown for the current period.  Please refer to Note B “Summary of Significant Accounting Policies” for a summary of the impact of adopting the provisions of ASU 2016-13 on October 1, 2023.

 

The following tables set forth the allocation of the Bank’s allowance for credit losses by loan category at the dates indicated. The portion of the credit loss allowance allocated to each loan category does not represent the total available for future losses which may occur within the loan category since the total credit loss allowance is a valuation allocation applicable to the entire loan portfolio. The Company generally charges-off the collateral or discounted cash flow deficiency on all loans at 90 days past due and all loans rated substandard or worse that are 90 days past due.

The following table presents, by loan category, the changes in the allowance for credit losses for the three months ended December 31, 2023 and the allowance for loan losses for the three months ended December 31, 2022.

22 

 

   One-to-Four           Home Equity                 
   Family   Commercial       Lines of   Commercial             
   Residential   Real Estate   Construction   Credit   Business   Other   Unallocated   Total 
   (In  thousands) 
                                 
Balance- September 30, 2023  $1,259   $5,277   $472   $207   $939   $2   $174   $8,330 
Effect of adopting ASU 2016-13   7    (589)   (55)   (87)   (133)   (1)   (174)   (1,032)
Charge-offs   
    
    
    
    
    
    
    
 
Recoveries   
    
    
    
    
    
    
    
 
Provision (credit)   (75)   161    301    (40)   39    (1)   
    385 
Balance- December 31, 2023  $1,191   $4,849   $718   $80   $845   $
   $
   $7,683 
                                         
Balance- September 30, 2022  $1,223   $4,612   $461   $263   $1,484   $1   $389   $8,433 
Charge-offs   
    
    
    
    
    
    
    
 
Recoveries   
    
    
    
    
    
    
    
 
Provision (credit)   12    518    65    (7)   (109)   
    (162)   317 
Balance- December 31, 2022  $1,235   $5,130   $526   $256   $1,375   $1   $227   $8,750 

 

During the three months ended December 31, 2023 and exclusive of the impact of the adoption of ASU 2016-13, the changes in the provision for credit losses for each portfolio of loans were primarily due to fluctuations in the outstanding balance of each segment of loans collectively evaluated for impairment. Specifically, we experienced significant growth in our commercial real estate and construction loan portfolios during the three months ended December 31, 2023 and a corresponding increase in the provision for credit losses for these portfolios. The overall increase in the allowance during the three months ended December 31, 2023 is attributed to the previously mentioned growth in our commercial real estate and construction portfolios, partially offset by improved economic metrics with continued low levels of net charge-offs and a decrease in non-performing assets.

 

The following table presents, by loan category, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of and September 30, 2023.

 

   One-to-Four           Home Equity                 
   Family   Commercial       Lines of   Commercial             
   Residential   Real Estate   Construction   Credit   Business   Other   Unallocated   Total 
   (In  thousands) 
Allowance for Loan Losses:                                        
Balance - September 30, 2023  $1,259   $5,277   $472   $207   $939   $2   $174   $8,330 
Individually evaluated                                        
for impairment   
    
    
    
    
    
    
    
 
Collectively evaluated                                        
for impairment   1,259    5,277    472    207    939    2    174    8,330 
                                         
Loans receivable:                                        
Balance - September 30, 2023  $237,683   $389,134   $21,853   $16,983   $30,194   $2,359   $
   $698,206 
Individually evaluated                                        
for impairment   2,031    2,969    2,474    
    147    
    
    7,621 
Collectively evaluated                                        
for impairment   235,652    386,165    19,379    16,983    30,047    2,359    
    690,585 

 

During the three months ended December 31, 2023, there were no loans modified to borrowers experiencing financial difficulty. During the three months ended December 31, 2022, there was one loan modified that was identified as a troubled debt restructuring (“TDR”) and there were no TDRs that subsequently defaulted within twelve months of modification.

23 

 

 

   Three Months Ended December 31, 2022 
   Number of   Investment Before   Investment After 
   Loans   TDR Modification   TDR Modification 
   (Dollars in thousands) 
One-to four-family residential   1   $97   $107 
                
Total   1   $97   $107 

 

There were no residential loans in the process of foreclosure at December 31, 2023.

 

NOTE K - DEPOSITS

 

A summary of deposits by type of account are summarized as follows:

 

   December 31,   September 30, 
   2023   2023 
   (In thousands) 
         
Demand accounts  $164,453   $188,550 
Savings accounts   60,008    62,168 
NOW accounts   119,738    115,182 
Money market accounts   306,886    284,885 
Certificates of deposit   100,547    92,725 
Retirement certificates   11,916    11,943 
Total deposits  $763,548   $755,453 

 

Included in Company’s deposits at December 31, 2023 were $13.8 million in brokered certificates of deposits and $15.5 million in certificate of deposits obtained through a national deposit listing service. At September 30, 2023 the Company had $13.8 million in brokered certificates of deposits and $14.0 million in certificate of deposits obtained through a national deposit listing service.

 

At December 31, 2023 and September 30, 2023, the aggregate deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance, were $456.7 million and $429.9 million, respectively. The estimated amount of deposits that were neither insured nor collateralized was $120.2 million and $109.3 million at December 31, 2023 and September 30, 2023, respectively.

 

 

NOTE L - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

 

The Company may use derivative financial instruments, such as interest rate swaps and interest rate floors and caps, as part of its interest rate risk management. Interest rate caps and floors are agreements whereby one party agrees to pay or receive a floating rate of interest on a notional principal amount for a predetermined period of time if certain market interest rate thresholds are met. The Company considers the credit risk inherent in these contracts to be negligible. As of December 31, 2023, the Company did not hold any interest rate floors or collars.

 

The Company is a party to interest rate derivatives that are not designated as hedging instruments. Under a program, the Company executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that the Company executes with a third-party financial institution, such that the Company minimizes its net risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties. The Company was not required to pledge any collateral for its interest rate swaps with financial institutions at December 31, 2023 and September 30, 2023.

 

The following table presents summary information regarding these derivatives as of December 31, 2023 and September 30, 2023.

 

24 

 

   Notional
Amount
   Average
Maturiy
(Years)
   Weighted
Average
Fixed Rate
   Weighted Average
Variable Rate
  Fair Value 
   (Dollars in thousands) 
December 31, 2023                   
Classified in Other Assets:                       
Customer interest rate swaps  $35,743    3.9    4.96%    1 Mo. BSBY + 2.44  $1,961 
Total  $35,743    3.9    4.96%      $1,961 
                        
Classified in Other Liabilities:                       
3rd Party interest rate swaps  $35,743    3.9    4.96%    1 Mo. BSBY + 2.44  $1,961 
Total  $35,743    3.9    4.96%      $1,961 
                        
September 30, 2023                       
Classified in Other Assets:                       
Customer interest rate swaps  $36,020    4.2    4.96%    1 Mo. BSBY + 2.44  $2,579 
Total  $36,020    4.2    4.96%      $2,579 
                        
Classified in Other Liabilities:                       
3rd Party interest rate swaps  $36,020    4.2    4.96%    1 Mo. BSBY + 2.44  $2,579 
Total  $36,020    4.2    4.96%      $2,579 

 

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit and are summarized in the below table. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.

 

   December 31,   September 30, 
   2023   2023 
   (In thousands) 
         
Financial instruments whose contract amounts represent credit risk          
Letters of credit  $1,098   $1,073 
Unused lines of credit   95,333    89,933 
Fixed rate loan commitments   15,610    3,578 
Variable rate loan commitments   4,969    26,472 
Totals  $117,010   $121,056 

 

Upon adoption of ASU 2016-13 on October 1, 2023, the Company recorded an allowance for credit losses for its unused lines of credit and unfunded commitments totaling $540,000. The Company’s reserves for off-balance sheet credit losses increased to $637,000 at December 31, 2023 from $0 at September 30, 2023.

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

 

Forward-Looking Statements

When used in this filing and in future filings by the Company with the Securities and Exchange Commission, in the Company’s press releases or other public or shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases, “anticipate,” “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “projected,” “believes”, or similar expressions are intended to identify “forward looking statements.” Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those risks previously disclosed by the Company in Item 1A of its Annual Report on Form 10-K as may be supplemented by Quarterly Reports on Form 10-Q filed with the SEC, general economic conditions, changes in interest rates, regulatory considerations, competition, technological developments, retention and recruitment of qualified personnel, and market acceptance of the Company’s pricing, products and services, and with respect to the loans extended by the Company and real estate owned, the following: risks related to the economic environment in the market areas in which the Bank operates, particularly with respect to the real estate market in New Jersey; the risk that the value of the real estate securing these loans may decline in value; and the risk that significant expense may be incurred by the Company in connection with the resolution of these loans.

 

25 

 

The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made, and advises readers that various factors, including regional and national economic conditions, substantial changes in levels of market interest rates, credit and other risks of lending and investing activities, and competitive and regulatory factors, could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from those anticipated or projected.

The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

 

 

Critical Accounting Policies

 

Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. Critical accounting policies may involve complex subjective decisions or assessments. Please refer to the Company’s Form 10-K for the Company’s critical accounting policies. There were no significant changes to the Company’s critical accounting policies during the three months ended December 31, 2023.

 

 

Comparison of Financial Condition at December 31, 2023 and September 30, 2023

 

Total Assets. Total assets increased $9.4 million, or 1.0%, to $916.7 million at December 31, 2023 from $907.3 million at September 30, 2023. The increase was attributable to higher balances of loans receivable, net of allowance for credit loss, offset by lower interest-earning deposits with banks.

 

Interest Earning Deposits. Interest-earning deposits with banks decreased $21.4 million, or 30.8%, to $48.0 million at December 31, 2023 from $69.4 million at September 30, 2023 resulting primarily from deployment of these fund into loans receivable during the three months ended December 31, 2023.

 

Loans Receivable. Total loans receivable increased $31.3 million, or 4.5%, to $729.5 million at December 31, 2023 from $698.2 million at September 30, 2023. The increase in total loans receivable during the quarter ended December 31, 2023 occurred in commercial real estate loans, which increased $18.2 million, or 4.7%, to $407.4 million, construction loans, which increased $12.8 million, or 58.5%, to $34.6 million and one-to four-family residential real estate loans (including home equity loans and lines of credit), which increased $3.5 million, or 1.4%, to $258.2 million. Partially offsetting these increases were commercial business loans, which decreased $3.1 million, or 10.4%, to $27.0 million and other loans, which decreased $120,000, or 5.1%, to $2.2 million during the quarter.

 

As of December 31, 2023, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital was estimated at approximately 267%. Management believes that Magyar Bank has implemented appropriate risk management practices, including risk assessments, board-approved underwriting policies and related procedures, which include monitoring loan portfolio performance and stressing of the commercial real estate portfolio under adverse economic conditions.

 

Total non-performing loans decreased $233,000, or 4.6%, to $4.9 million at December 31, 2023 from $5.1 million at September 30, 2023. The decline was attributable to payments received on one residential mortgage loan that was no longer delinquent more than 90 days at December 31, 2023. The ratio of non-performing loans to total loans decreased to 0.66% at December 31, 2023 from 0.73% at September 30, 2023.

 

The allowance for credit losses was unchanged at $8.3 million during the three months ended December 31, 2023. Upon adoption of ASU 2016-13 on October 1, 2023, the Company’s allowance for credit losses decreased $492,000. Growth in loans receivable and loan commitments during the quarter resulted in additional provisions for credit loss totaling $481,000. The Company’s allowance for on-balance sheet credit losses decreased to $7.7 million at December 31, 2023 from $8.3 million at September 30, 2023 while its reserve for off-balance sheet commitments increased to $637,000 at December 31, 2023 from $0 at September 30, 2023.

 

26 

 

The allowance for credit losses as a percentage of non-performing loans increased to 171.5% at December 31, 2023 from 163.9% at September 30, 2023. Our allowance for credit losses as a percentage of total loans was 1.14% at December 31, 2023 compared with 1.19% at September 30, 2023. Future increases in the allowance for credit losses may be necessary based on possible future increases in non-performing loans and charge-offs, the possible deterioration of collateral values, and the possible deterioration of the current economic environment.

 

Investment Securities. At December 31, 2023, investment securities totaled $96.6 million, reflecting an increase of $646,000, or 0.7%, from September 30, 2023. During the three months ended December 31, 2023, the Company purchased securities totaling $4.0 million and experienced a $584,000 increase in the market value of its available-for-sale investment securities. Offsetting these increases were repayments from mortgage-backed securities totaling $1.4 million and the maturity of a $2.5 million U.S. Government-sponsored enterprise debt security. There were no sales of investment securities during the period.

 

Investment securities at December 31, 2023 consisted of $66.9 million in mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises, $23.0 million in U.S. government-sponsored enterprise debt securities, $3.0 million in corporate notes, $3.5 million in municipal bonds, and $203,000 in “private-label” mortgage-backed securities. There was no allowance for credit losses for the Company’s investment securities for the three months ended December 31, 2023.

 

Deposits. Total deposits increased $8.1 million, or 1.1%, to $763.5 million at December 31, 2023 from $755.4 million at September 30, 2023.

 

The inflow in deposits occurred in money market accounts, which increased $22.0 million, or 7.7%, to $306.9 million, in certificates of deposit (including individual retirement accounts), which increased $7.8 million, or 7.4%, to $112.5 million and in interest-bearing checking accounts (NOW), which increased $4.6 million, or 4.0%, to $119.7 million. Partially offsetting these increases were decreases in non-interest bearing checking accounts, which decreased $24.1 million, or 12.8%, to $164.4 million and savings accounts, which decreased $2.2 million, or 3.5%, to $60.0 million. Included in the certificates of deposit were $13.8 million in brokered certificates of deposit.

 

Borrowed Funds. Borrowings decreased $719,000, or 2.4%, to $28.8 million at December 31, 2023 from $29.5 million at September 30, 2023. The Company repaid a matured long term advance totaling $2.4 million and borrowed a zero- cost, three-year advance totaling $1.7 million the Federal Home Loan Bank of New York during the three months ended December 31, 2023.

 

Stockholders’ Equity. Stockholders’ equity increased $1.7 million, or 1.7%, to $106.5 million at December 31, 2023 from $104.8 million at September 30, 2023. The increase was primarily due to net income of $1.6 million, followed by $440,000 in other comprehensive income, a $354,000 increase for the tax effected adoption of ASU 2016-13, a $161,000 increase for stock-based compensation and a $50,000 increase for ESOP shares allocated during the quarter. Partially offsetting these increases were $716,000 in dividends paid ($0.11 per share) and 19,232 shares repurchased during the quarter totaling $192,000. As a result, the Company’s book value per share increased to $16.01 at December 31, 2023 from $15.70 at September 30, 2023.

 

 

Average Balance Sheet for the Three Months Ended December 31, 2023 and 2022

 

The following table presents certain information regarding the Company’s financial condition and net interest income for the three months ended December 31, 2023 and 2022. The table presents the annualized average yield on interest-earning assets and the annualized average cost of interest-bearing liabilities. We derived the yields and costs by dividing annualized income or expense by the average balance of interest-earning assets and interest-bearing liabilities, respectively, for the periods shown. We derived average balances from daily balances over the period indicated. Interest income includes fees that we consider adjustments to yields.

 

27 

 

 

   Three Months Ended December 31, 
   2023   2022 
   Average
Balance
   Interest
Income/
Expense
   Yield/Cost
(Annualized)
   Average
Balance
   Interest
Income/
Expense
   Yield/Cost
(Annualized)
 
   (Dollars in thousands) 
Interest-earning assets:                              
Interest-earning deposits  $70,954   $928    5.19%   $14,984   $109    2.88% 
Loans receivable, net   703,238    10,082    5.69%    643,206    7,959    4.91% 
Securities                              
Taxable   92,694    478    2.05%    97,121    395    1.61% 
Tax-exempt (1)    3,370    18    2.15%    3,370    18    2.15% 
FHLBNY stock   2,290    55    9.53%    1,613    24    6.00% 
Total interest-earning assets   872,546    11,561    5.26%    760,294    8,505    4.44% 
Noninterest-earning assets   49,628              48,415           
Total assets  $922,174             $808,709           
                               
Interest-bearing liabilities:                              
Savings accounts (2)   $60,661    87    0.57%   $78,263    82    0.41% 
NOW accounts (3)    413,731    3,156    3.03%    325,295    1,177    1.44% 
Time deposits (4)   107,207    834    3.09%    79,535    215    1.07% 
Total interest-bearing deposits   581,599    4,077    2.78%    483,093    1,474    1.21% 
Borrowings   29,604    236    3.16%    19,067    136    2.83% 
Total interest-bearing liabilities   611,203    4,313    2.80%    502,160    1,610    1.27% 
Noninterest-bearing liabilities   204,225              206,197           
Total liabilities   815,428              708,357           
Retained earnings   106,746              100,352           
Total liabilities and retained earnings  $922,174             $808,709           
                               
Tax-equivalent basis adjustment        (4)             (4)     
Net interest and dividend income       $7,244             $6,891      
Interest rate spread             2.46%              3.17% 
Net interest-earning assets  $261,343             $258,134           
Net interest margin (5)             3.29%              3.60% 
Average interest-earning assets to average interest-bearing liabilities   142.76%              151.40%           

 

 

(1)    Calculated using the Company's 21% federal tax rate.

(2)    Includes passbook savings, money market passbook and club accounts.

(3)    Includes interest-bearing checking and money market accounts.

(4)    Includes certificates of deposits and individual retirement accounts.

(5)    Calculated as annualized net interest income divided by average total interest-earning assets.

 

 

Comparison of Operating Results for the Three Months Ended December 31, 2023 and 2022

 

Net Income. Net income decreased $158,000, or 8.7%, to $1,652,000 for the three-month period ended December 31, 2023 compared with net income of $1,810,000 for the three-month period ended December 31, 2022. The decrease was due to higher provisions for credit loss and other expenses, partially offset by higher net interest income.

 

Net Interest and Dividend Income. Net interest and dividend income increased $353,000, or 5.1%, to $7.2 million for the three months ended December 31, 2023 from $6.9 million for the three months ended December 31, 2022. The increase was attributable to a $112.3 million increase in the average balance of interest-earning assets between periods, partially offset by a 31 basis point decrease in the Company’s net interest margin to 3.29% for the three months ended December 31, 2023 from 3.60% for the three months ended December 31, 2022.

 

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Interest and Dividend Income. Interest and dividend income increased $3.1 million, or 35.9%, to $11.6 million for the three months ended December 31, 2023 compared with $8.5 million for the three months ended December 31, 2022. The increase was attributable to an 82 basis point increase in the yield on earning assets to 5.26% for the three months ended December 31, 2023 from 4.44% for the three months ended December 31, 2022 as well as a $112.3 million, or 14.8%, increase in the average balance of interest-earning assets. The increase in yield on the Company’s assets was attributable to higher market interest rates between periods.

 

The average balance of loans receivable, net of allowance for loan loss, increased $60.0 million to $703.2 million during the three months ended December 31, 2023 from $643.2 million during the three months ended December 31, 2022 while the yield on loans receivable increased 78 basis points to 5.69% for the three months ended December 31, 2023 from 4.91% for the three months ended December 31, 2022 due to higher market interest rates. The higher average balance and yield accounted for a $2.1 million, or 26.7%, increase in loan interest income between periods.

 

Interest earned on investment securities, including interest-earning deposits and excluding FHLB stock, increased $902,000, or 174.1%, to $1.4 million for the quarter ended December 31, 2023 from $518,000 for the prior year quarter. A 160 basis point increase in the yield on such assets to 3.39% for the three months ended December 31, 2023 from 1.79% for the three months ended December 31, 2022, and the average balance of investment securities and interest-earning deposits increased by $51.5 million, or 44.6%, to $167.0 million for the quarter ended December 31, 2023.

 

Interest Expense. Interest expense increased $2.7 million, or 167.9%, to $4.3 million for the three months ended December 31, 2023 from $1.6 million for the three months ended December 31, 2022. The cost of interest-bearing liabilities increased 153 basis points to 2.80% for the three months ended December 31, 2023 compared with 1.27% for the three months ended December 31, 2022 resulting primarily from higher market interest rates. In addition, the average balance of interest-bearing liabilities increased $109.0 million, or 21.7%, to $611.2 million.

 

The average balance of interest-bearing deposits increased $98.5 million, or 20.4%, to $581.6 million for the quarter ended December 31, 2023 from $483.0 million for the quarter ended December 31, 2022, while the average cost of such deposits increased 157 basis points to 2.78% from 1.21%. As a result, interest paid on interest-bearing deposits increased $2.6 million to $4.1 million for the three months ended December 31, 2023 compared with $$1.5 million for the three months ended December 31, 2022 due to higher market interest rate environment.

 

Interest paid on borrowings increased $100,000, or 73.5%, to $236,000 for the three months ended December 31, 2023 from $136,000 for the prior year period. The increase was the result of a 33 basis point increase in the cost of borrowings to 3.16% for the three months ended December 31, 2023 from 2.83% for the three months ended December 31, 2022. Average balance of borrowings increased $10.5 million to $29.6 million for the three months ended December 31, 2023 compared to $19.1 million for the three months ended December 31, 2022.

 

Provision for Credit Losses. The Company recorded a provision of $481,000 for the three months ended December 31, 2023 compared to $317,000 for the three months ended December 31, 2022. The higher provisions resulted from growth in the Company’s loan portfolio during the three months ended December 31, 2023, specifically in commercial real estate and construction loans. The Company recorded $461 in net recoveries during the three months ended December 31, 2023 compared with $0 in net recoveries during the three months ended December 31, 2022.

 

Other Income. Other income increased $12,000, or 2.0%, to $609,000 during the three months ended December 31, 2023 compared to $597,000 for the three months ended December 31, 2022. Higher service charge income from loan prepayment penalties and a $60,000 gain on the sale of land during the quarter were partially offset by lower interest rate swap fees and gains on the sale of SBA loans.

 

Other Expenses. Other expenses increased $439,000, or 9.6%, to $5.0 million during the three months ended December 31, 2023.

 

The increase in other expense was primarily attributable to higher compensation and benefit expense, which increased $226,000, or 8.6%, to $2.8 million, due to fewer open positions between periods and the addition of a commercial lender in September 2023. Also contributing to the increase were higher FDIC deposit insurance premiums and other expenses. Deposit insurance premiums increased $49,000, or 90.7%, from deposit growth and higher insurance assessment rates implemented by the FDIC for all insured institutions effective January 1, 2023. Other expenses increased $100,000, or 20.3%, from higher loan origination and servicing costs, higher losses on fraudulent checks, and higher OREO expenses.

 

29 

 

Income Tax Expense. The Company recorded tax expense of $700,000 on pre-tax income of $2.4 million for the three months ended December 31, 2023, compared to $780,000 on pre-tax income of $2.6 million for the three months ended December 31, 2022. The Company’s effective tax rate for the three months ended December 31, 2023 was 29.8% compared with 30.1% for the three months ended December 31, 2022.

 

 

LIQUIDITY AND CAPITAL RESOURCES

 

Liquidity

 

The Company’s liquidity is a measure of its ability to fund loans, pay withdrawals of deposits, and other cash outflows in an efficient, cost-effective manner. The Company’s short-term sources of liquidity include maturity, repayment and sales of assets, excess cash and cash equivalents, new deposits, other borrowings, and new advances from the FHLBNY. Based on eligible loan collateral pledged to the FHLBNY at December 31, 2023, we had an aggregate borrowing capacity of $122.9 million. There has been no material adverse change during the three months ended December 31, 2023 in the ability of the Company and its subsidiaries to fund their operations.

 

At December 31, 2023, the Company had commitments outstanding under letters of credit totaling $1.1 million, commitments to originate loans totaling $20.6 million, and commitments to fund undisbursed balances of closed loans and unused lines of credit totaling $95.3 million. There has been no material change during the three months ended December 31, 2023 in any of the Company’s other contractual obligations or commitments to make future payments.

 

Capital Requirements

 

At December 31, 2023, the Bank’s Tier 1 capital as a percentage of the Bank’s total assets was 10.81%, and total qualifying capital as a percentage of risk-weighted assets was 15.81%.

 

Item 3- Quantitative and Qualitative Disclosures about Market Risk

 

Not applicable to smaller reporting companies.

 

 

Item 4 – Controls and Procedures

Under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective.

 

There has been no change in the Company's internal control over financial reporting during the three months ended December 31, 2023 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

 

30 

 

 

PART II - OTHER INFORMATION

 

Item 1.Legal proceedings

None.

 

Item 1A.Risk Factors

There were no material changes to the risk factors relevant to the Company’s operations as described in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023 filed on December 15, 2023.

 

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
a.)Not applicable.

 

b.)Not applicable.

 

c.)The Company repurchased 19,232 shares of its common stock during the three months ended December 31, 2023. Through December 31, 2023, the Company held 442,873 shares in treasury that were repurchased at a weighted average price of $11.51 pursuant to stock repurchase plans. On December 8, 2022, the Company announced a stock repurchase program of up to 5% of its outstanding shares of common stock, or 337,146 shares, 217,084 shares of which remained subject to repurchase under the plan.

 

The following table reports information regarding repurchases of our common stock during the three months ended December 31, 2023.

 

           Remaining Number 
   Total Number   Average   of Shares That 
   of Shares   Price Paid   May be Purchased 
Period  Purchased   Per Share   Under the Plan 
October 1, 2023 through October 31, 2023   7,541   $9.52    228,775 
November 1, 2023 through November 30, 2023   1,700    9.84    227,075 
December 1, 2023 through December 31, 2023   9,991    10.33    217,084 
Total   19,232    9.97      

 

Item 3.Defaults Upon Senior Securities

None

Item 4.Mine Safety Disclosures

Not applicable.

 

Item 5.Other Information
a.)Not applicable.

 

b.)None.

 

 

31 

 

Item 6.Exhibits
  31.1 Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)
  31.2 Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)
  32.1 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
  32.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
  101 Interactive data file containing the following financial statements formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets at December 31, 2023 and September 30, 2023; (ii) the Consolidated Statements of Income for the three months ended December 31, 2023 and 2022; (iii) the Consolidated Statements of Comprehensive Income for the three months ended December 31, 2023 and 2022; (iv) the Consolidated Statements of Changes in Stockholders’ Equity for the three months ended December 31, 2023 and 2022; (v) the Consolidated Statements of Cash Flows for the three months ended December 31, 2023 and 2022; and (vi) the Notes to Consolidated Financial Statements, tagged as blocks of text.
  104 Cover Page Interactive Data File (embedded within Inline XBRL document contained in Exhibit 101).

 

32 

 

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

  MAGYAR BANCORP, INC.
  (Registrant)
   
   
   
   
Date: February 14, 2024 /s/ John S. Fitzgerald
  John S. Fitzgerald
  President and Chief Executive Officer
   
   
   
Date: February 14, 2024 /s/ Jon R. Ansari
  Jon R. Ansari
  Executive Vice President and Chief Financial Officer

 

 

33 

 

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Exhibit 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

 

I, John S. Fitzgerald, certify that:

 

1.I have reviewed this quarterly report on Form 10-Q of Magyar Bancorp, Inc.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respect the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

a)designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)designed such internal control over finance reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

 

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

 

Date: February 14, 2024  
   
   
   
/s/ John S. Fitzgerald    
John S. Fitzgerald  
President and Chief Executive Officer  

 

34 

 

Exhibit 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

 

I, Jon R. Ansari, certify that:

 

1.I have reviewed this quarterly report on Form 10-Q of Magyar Bancorp, Inc.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respect the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

a)designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)designed such internal control over finance reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

 

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

 

Date: February 14, 2024  
   
   
   
/s/ Jon R. Ansari  
Jon R. Ansari  
Executive Vice President and Chief Financial Officer  

35 

 

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the quarterly report of Magyar Bancorp, Inc. (the “Company”) on Form 10-Q for the quarter ended December 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John S. Fitzgerald, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

Date: February 14, 2024  
   
   
   
/s/ John S. Fitzgerald  
John S. Fitzgerald  
President and Chief Executive Officer  

 

36 

 

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the quarterly report of Magyar Bancorp, Inc. (the “Company”) on Form 10-Q for the quarter ended December 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jon R. Ansari, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

Date: February 14, 2024  
   
   
   
/s/ Jon R. Ansari  
Jon R. Ansari  
Executive Vice President and Chief Financial Officer  

 

37 

 

v3.24.0.1
Document And Entity Information - shares
3 Months Ended
Dec. 31, 2023
Feb. 01, 2024
Document Information Line Items    
Entity Registrant Name Magyar Bancorp, Inc.  
Trading Symbol MGYR  
Document Type 10-Q  
Current Fiscal Year End Date --09-30  
Entity Common Stock, Shares Outstanding   6,653,933
Amendment Flag false  
Entity Central Index Key 0001337068  
Entity Current Reporting Status Yes  
Entity Filer Category Non-accelerated Filer  
Document Period End Date Dec. 31, 2023  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Document Quarterly Report true  
Document Transition Report false  
Entity File Number 000-51726  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 20-4154978  
Entity Address, Address Line One 400 Somerset Street  
Entity Address, City or Town New Brunswick  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 08901  
City Area Code (732)  
Local Phone Number 342-7600  
Title of 12(b) Security Common Stock, $.01 per share  
Security Exchange Name NASDAQ  
Entity Interactive Data Current Yes  
v3.24.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Assets    
Cash $ 3,128 $ 3,179
Interest earning deposits with banks 47,989 69,353
Total cash and cash equivalents 51,117 72,532
Investment securities - available for sale, at fair value 12,273 10,125
Investment securities - at amortized cost (fair value of $75,508 and $73,728 at December 31, 2023 and September 30, 2023, respectively) 84,333 85,835
Federal Home Loan Bank of New York stock, at cost 2,254 2,286
Loans receivable 728,560 697,400
Allowance for credit losses (7,683) (8,330)
Bank owned life insurance 18,126 18,030
Accrued interest receivable 4,585 4,337
Premises and equipment, net 12,534 13,339
Other real estate owned ("OREO") 328 328
Other assets 10,312 11,410
Total assets 916,739 907,292
Liabilities    
Deposits 763,548 755,453
Escrowed funds 3,723 3,494
Borrowings 28,796 29,515
Accrued interest payable 656 443
Accounts payable and other liabilities 13,477 13,597
Total liabilities 810,200 802,502
Stockholders' equity    
Preferred stock: $.01 Par Value, 500,000 shares authorized; at December 31, 2023 and September 30, 2023, none issued
Common stock: $.01 Par Value, 14,000,000 shares authorized; 7,097,825 shares issued; 6,654,952 and 6,674,184 shares outstanding at December 31, 2023 and September 30, 2023, respectively, at cost 71 71
Additional paid-in capital 62,962 62,801
Treasury stock: 442,873 and 423,641 shares at December 31, 2023 and September 30, 2023, respectively, at cost (5,554) (5,362)
Unearned Employee Stock Ownership Plan shares (3,047) (3,097)
Retained earnings 53,456 52,166
Accumulated other comprehensive loss (1,349) (1,789)
Total stockholders' equity 106,539 104,790
Total liabilities and stockholders' equity $ 916,739 $ 907,292
v3.24.0.1
Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Statement of Financial Position [Abstract]    
Fair value of investment securities - held to maturity (in Dollars) $ 75,508 $ 73,728
Preferred stock, par value (in Dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized 500,000 500,000
Preferred stock, shares issued
Common stock, par value (in Dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized 14,000,000 14,000,000
Common stock, shares issued 7,097,825 7,097,825
Common stock, shares outstanding 6,654,952 6,674,184
Treasury stock, shares at cost 442,873 423,641
v3.24.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Interest and dividend income    
Loans, including fees $ 10,082 $ 7,959
Investment securities    
Taxable 1,406 504
Tax-exempt 14 14
Federal Home Loan Bank of New York stock 55 24
Total interest and dividend income 11,557 8,501
Interest expense    
Deposits 4,077 1,474
Borrowings 236 136
Total interest expense 4,313 1,610
Net interest and dividend income 7,244 6,891
Provision for credit losses- loans 384 317
Provision for credit losses- commitments 97
Net interest and dividend income after provision for credit losses 6,763 6,574
Other income    
Service charges 303 245
Income on bank owned life insurance 95 95
Interest rate swap fees 57
Gains on sales of premises and equipment 60
Other operating income 22 20
Gains on sales of loans 129 180
Total other income 609 597
Other expenses    
Compensation and employee benefits 2,847 2,621
Occupancy expenses 790 761
Professional fees 226 179
Data processing expenses 140 146
Director fees and benefits 224 201
Marketing and business development 97 126
FDIC deposit insurance premiums 103 54
Other expenses 593 493
Total other expenses 5,020 4,581
Income before income tax expense 2,352 2,590
Income tax expense 700 780
Net income $ 1,652 $ 1,810
Earnings per share - basic (in Dollars per share) $ 0.26 $ 0.28
Earnings per share - diluted (in Dollars per share) $ 0.26 $ 0.28
Weighted average shares outstanding - basic (in Shares) 6,387,010 6,456,525
Weighted average shares outstanding - diluted (in Shares) 6,387,010 6,459,446
v3.24.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]    
Net income $ 1,652 $ 1,810
Other comprehensive income    
Unrealized gains on securities available for sale 584 206
Other comprehensive income, before tax 584 206
Deferred income tax effect (144) (50)
Total other comprehensive income 440 156
Total comprehensive income $ 2,092 $ 1,966
v3.24.0.1
Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Common Stock
Additional Paid-In Capital
Treasury Stock
Unearned ESOP Shares
Retained Earnings
Accumulated Other Comprehensive Loss
Total
Balance at Sep. 30, 2022 $ 71 $ 63,734 $ (5,793) $ (3,169) $ 45,773 $ (2,114) $ 98,502
Balance (in Shares) at Sep. 30, 2022 6,745,128            
Net income 1,810 1,810
Dividends paid on common stock (744) (744)
Other comprehensive income 156 156
ESOP shares allocated 17 24 41
Purchase of treasury stock (27) (27)
Purchase of treasury stock (in Shares) (2,194)            
Stock-based compensation expense 180 180
Balance at Dec. 31, 2022 $ 71 63,931 (5,820) (3,145) 46,839 (1,958) 99,918
Balance (in Shares) at Dec. 31, 2022 6,742,934            
Balance at Sep. 30, 2023 $ 71 62,801 (5,362) (3,097) 52,166 (1,789) 104,790
Balance (in Shares) at Sep. 30, 2023 6,674,184            
Net income 1,652 1,652
Dividends paid on common stock (716) (716)
Effect of adopting ASU 2016-13         354 354
Other comprehensive income 440 440
ESOP shares allocated   50 50
Purchase of treasury stock (192) (192)
Purchase of treasury stock (in Shares) (19,232)            
Stock-based compensation expense 161 161
Balance at Dec. 31, 2023 $ 71 $ 62,962 $ (5,554) $ (3,047) $ 53,456 $ (1,349) $ 106,539
Balance (in Shares) at Dec. 31, 2023 6,654,952            
v3.24.0.1
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares
3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]    
Dividends paid $ 0.11 $ 0.11
v3.24.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Operating activities    
Net income $ 1,652 $ 1,810
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation expense 217 208
Premium amortization on investment securities, net 20 43
Provision for credit losses 481 317
Originations of SBA loans held for sale (1,613) (1,825)
Proceeds from the sales of SBA loans 1,741 2,005
Gains on sale of loans (129) (180)
Gains on the sale of premises and equipment (60)
ESOP compensation expense 50 41
Stock-based compensation expense 161 180
Deferred income tax expense (benefit) 221 (237)
Increase in accrued interest receivable (248) (348)
Increase in surrender value of bank owned life insurance (95) (95)
Decrease in other assets 733 160
Increase in accrued interest payable 213 77
Decrease in accounts payable and other liabilities (120) (821)
Net cash provided by operating activities 3,224 1,335
Investing activities    
Net increase in loans receivable (31,934) (46,554)
Purchases of investment securities held-to-maturity (2,000)
Purchases of investment securities available-for-sale (1,953)
Principal repayments on investment securities held-to-maturity 3,487 992
Principal repayments on investment securities available-for-sale 384 209
Purchases of premises and equipment, net (128) (10)
Proceeds from the sale of land 776
Investment in other real estate owned (11)
Purchase of Federal Home Loan Bank stock (76) (2,582)
Redemption of Federal Home Loan Bank stock 108 1,923
Net cash used in investing activities (31,336) (46,033)
Financing activities    
Net increase in deposits 8,095 8,350
Net increase in escrowed funds 229 (39)
Proceeds from long-term advances 1,690 3,000
Repayments of long-term advances (2,409)
Net change in short-term advances   11,100
Cash dividends paid on common stock (716) (744)
Purchase of treasury stock (192) (27)
Net cash provided by financing activities 6,697 21,640
Net decrease in cash and cash equivalents (21,415) (23,058)
Cash and cash equivalents, beginning of period 72,532 30,936
Cash and cash equivalents, end of period 51,117 7,878
Cash paid for    
Interest 4,100 1,533
Income taxes
Non-cash operating activities    
Adoption of ASU 2016-13 $ 354
v3.24.0.1
BASIS OF PRESENTATION
3 Months Ended
Dec. 31, 2023
Basis of Presentation [Abstract]  
BASIS OF PRESENTATION

NOTE A – BASIS OF PRESENTATION

 

The consolidated financial statements include the accounts of Magyar Bancorp, Inc. (the “Company”), its wholly owned subsidiary, Magyar Bank (the “Bank”), and the Bank’s wholly owned subsidiaries Magyar Service Corporation, Hungaria Urban Renewal, LLC, and Magyar Investment Company. All material intercompany transactions and balances have been eliminated. The Company prepares its consolidated financial statements on the accrual basis and in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). The unaudited information furnished herein reflects all adjustments (consisting of normal recurring accruals) that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented.

 

Operating results for the three months ended December 31, 2023 are not necessarily indicative of the results that may be expected for the year ending September 30, 2024. The September 30, 2023 information has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by US GAAP for complete consolidated financial statements.

 

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of available-for-sale investment securities, the valuation of other real estate owned (“OREO”), and the assessment of realizability of deferred income tax assets.

 

The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2023 for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued.

v3.24.0.1
RECENT ACCOUNTING PRONOUNCEMENTS
3 Months Ended
Dec. 31, 2023
Recent Accounting Pronouncements [Abstract]  
RECENT ACCOUNTING PRONOUNCEMENTS

NOTE B - RECENT ACCOUNTING PRONOUNCEMENTS

 

In connection with the preparation of quarterly and annual reports in accordance with the Securities and Exchange Commission’s (“SEC”) Securities Exchange Act of 1934, SEC Staff Accounting Bulletin Topic 11.M requires the disclosure of the impact that recently issued accounting standards will have on consolidated financial statements when they are adopted in the future.

 

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326), which changed the impairment model for most financial assets. This update was intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses (“ACL”) should reflect management's current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be affected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. With certain exceptions, transition to the new requirements will be through a cumulative-effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. This update is effective for SEC filers that are eligible to be smaller reporting companies, non-SEC filers, and all other companies, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.

 

The Company adopted ASU 2016-13 on October 1, 2023 using the modified retrospective approach for all financial assets measured at amortized cost, including loans, held-to-maturity debt securities, available-for-sale debt securities and unfunded commitments. The Company recorded a cumulative effect increase to retained earnings of $492,000 ($346,000 net of taxes), which was comprised of a $1,032,000 ($725,000 net of tax) increase related to loans and $540,000 ($379,000 net of tax) decrease related to unfunded commitments. The Company determined that there was no impact to retained earnings related to held-to-maturity securities as a result of adopting this guidance. The results reported for periods beginning on or after October 1, 2023 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable accounting standards.

 

The impact of the change from the incurred loss model to the current expected credit loss model is included in the following table:

 

   October 1, 2023 
       Adoption     
   Pre-adoption   Impact   As Reported 
   (In thousands) 
Assets            
ACL on debt securities held-to-maturity  $
   $
   $
 
ACL on loans               
One-to-four family residential   1,259    7    1,266 
Commercial real estate   5,277    (589)   4,688 
Construction   472    (55)   417 
Home equity lines of credit   207    (87)   120 
Commercial business   939    (133)   806 
Other   176    (175)   1 
                
Liabilities               
ACL on unfunded commitments   
    540    540 
Total  $8,330   $(492)  $7,838 

 

Allowance for Credit Losses on Loans

 

The Company maintains its allowance for credit losses (“ACL”) at a level that management believes to be appropriate to absorb estimated credit losses as of the date of the Consolidated Statement of Financial Condition. The Company established its allowance in accordance with the guidance included in Accounting Standards Codification 326, Financial Instruments – Credit Losses (“ASC 326”). The ACL is a valuation reserve established and maintained by charges against income. Loans, or portions thereof, are charged-off against the ACL when they are deemed uncollectible. The ACL is an estimate of expected credit losses that considers our historical loss experience, the weighted average expected lives of loans, current economic conditions and forecasts of future economic conditions. The determination of an appropriate ACL is inherently subjective and may have significant changes from period to period. The methodology for determining the ACL has two main components: evaluation of expected credit losses for certain groups of homogeneous loans that share similar risk characteristics and evaluation of loans that do not share risk characteristics with other loans. The ACL is measured on a collective (pool) basis when similar characteristics exist. The Company’s loan portfolio is segmented by loan types that have similar risk characteristics and behave similarly during economic cycles.

 

Historical credit loss experience is the basis for the estimate of expected credit losses. We apply our historical loss rates to pools of loans with similar risk characteristics using the Weighted-Average Remaining Maturity (“WARM”) method. The remaining contractual life of the pools of loans with similar risk characteristics is adjusted by expected scheduled payments and prepayments. After consideration of the historical loss calculation, management applies qualitative adjustments to reflect the current conditions and reasonable and supportable forecasts not already reflected in the historical loss information. Our reasonable and supportable forecast adjustment is based on a regional economic indicator obtained from the United States Government Publishing Office. The Company selected eight qualitative metrics which were correlated with the Bank and its peer group’s historical loss patterns. The eight qualitative metrics include: changes in lending policies and procedures, changes in national and local economic conditions as well as business conditions, changes in the nature, complexity, and volume of the portfolio, changes in the experience, ability, and depth of lenders and lending management, changes in the volume and severity of past due and classified loans, changes in the value of collateral securing loans, changes in or the existence of credit concentrations, and changes in the legal and/or regulatory landscape. The adjustments are weighted for relevance before applying to each pool of loans. Each quarter, management reviews the recommended adjustment factors and applies any additional adjustments based on current conditions.

 

The Company has elected to exclude $4.3 million of accrued interest receivable on loans as of December 31, 2023 from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. Accrued interest on loans is reported in the accrued interest receivable line on the consolidated statements of financial condition.

 

The ACL for individual loans begins with the use of normal credit review procedures to identify whether a loan no longer shares similar risk characteristics with other pooled loans and, therefore, should be individually assessed. We individually evaluate all commercial loans that meet the following criteria: (1) when it is determined that foreclosure is probable, (2) substandard, doubtful and nonperforming loans when repayment is expected to be provided substantially through the operation or sale of the collateral, or (3) when it is determined by management that a loan does not share similar risk characteristics with other loans. Credit loss estimates are calculated based on the following three acceptable methods for measuring the ACL: (1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral when the loan is collateral dependent. Our individual loan evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent. Collateral values are reduced to consider expected disposition costs when appropriate. A charge-off is recorded when the estimated fair value of the loan is less than the loan balance.

 

Allowance for Credit Losses on Unfunded Loan Commitments

 

The Company estimates expected credit losses over the contractual period in which the Bank is exposed to credit risk via a contractual obligation to extend credit unless that obligation is unconditionally cancellable by the Bank. The allowance for credit losses on unfunded loan commitments is included in accounts payable and other liabilities in the Company’s Statement of Financial Condition and is adjusted through credit loss expense. The estimate includes consideration of the likelihood that funding will occur, the amount of funding that will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

 

Allowance for Credit Losses on Held-to-Maturity Securities

 

The Company accounts for its held-to-maturity securities in accordance with Accounting Standards Codification (ASC) 326-20, Financial Instruments – Credit Loss – Measured at Amortized Cost, which requires that the Company measure expected credit losses on held-to-maturity debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current economic conditions and reasonable and supportable forecasts.

 

The Company classifies its held-to-maturity debt securities into the following major security types: obligations of U.S. government agencies, obligations of U.S. government-sponsored enterprises, private label mortgage-backed securities, obligations of state and political subdivisions and corporate securities. Credit ratings of held-to-maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis. Based on the credit ratings of our held-to-maturity securities and our historical experience of no losses, the Company determined that an allowance for credit losses on its’ held-to-maturity portfolio is not required.

 

Accrued interest receivable on held-to-maturity debt securities totaled $215 thousand as of December 31, 2023 and is included within accrued interest receivable on the Company’s Consolidated Statement of Financial Condition. This amount is excluded from the estimate of expected credit losses. Generally, held-to-maturity debt securities are classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When held-to-maturity debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed against interest income.

 

Allowance for Credit Losses on Available-for-Sale Securities

 

The Company measures expected credit losses on available-for-sale debt securities when the Bank intends to sell, or when it is not more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the amortized cost basis of the security is written down to fair value through income. For available-for-sale debt securities that do not meet the previously mentioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this evaluation indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, equal to the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

 

The ACL on available-for-sale debt securities is included within the recorded balance of securities available-for-sale on the Consolidated Statements of Financial Condition. Changes in the allowance for credit losses are recorded within provision for credit losses on the Consolidated Statements of Income. Losses are charged against the allowance when the Company believes the collectability of an available-for-sale security is in jeopardy or when either of the criteria regarding intent or requirement to sell is met.

 

Accrued interest receivable on available-for-sale debt securities totaled $26 thousand as of December 31, 2023 and is included within accrued interest receivable on the Company’s Consolidated Statement of Financial Condition. This amount is excluded from the estimate of expected credit losses. Generally, available-for-sale debt securities are classified as nonaccrual when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about the further collectability of principal or interest. When available-for-sale debt securities are placed on nonaccrual status, unpaid interest credited to income is reversed against interest income.

v3.24.0.1
CONTINGENCIES
3 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
CONTINGENCIES

NOTE C - CONTINGENCIES

 

The Company, from time to time, is a party to routine litigation that arises in the normal course of business. In the opinion of management, the resolution of this litigation, if any, would not have a material adverse effect on the Company’s consolidated financial position or results of operations as presented in this report.

v3.24.0.1
EARNINGS PER SHARE
3 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
EARNINGS PER SHARE

NOTE D - EARNINGS PER SHARE

 

The following table presents a calculation of basic and diluted earnings per share for the three months ended December 31, 2023 and 2022. Basic and diluted earnings per share were calculated by dividing net income by the weighted-average number of shares outstanding for the periods.

 

   For the Three Months 
   Ended December 31, 
   2023   2022 
   (Dollars in thousands, except share and per share data) 
         
Income applicable to common shares  $1,652   $1,810 
Weighted average common shares outstanding- basic   6,387,010    6,456,525 
Potential diliutive common stock equivalents   
    2,921 
Weighted average common shares outstanding- diluted   6,387,010    6,459,446 
Earnings per share - basic  $0.26   $0.28 
Earnings per share - diluted  $0.26   $0.28 

 

Options to purchase 293,200 shares of common stock at a weighted average strike price of $12.58 and 124,320 shares of restricted shares at a weighted average price of $12.63 were outstanding at December 31, 2023 but were not included in the calculation of diluted EPS because they were anti-dilutive. Options to purchase 293,200 shares of common stock at a weighted average strike price of $12.58 and 156,400 shares of restricted shares at a weighted average price of $12.63 were outstanding at December 31, 2022.

v3.24.0.1
STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM
3 Months Ended
Dec. 31, 2023
Stock-Based Compensation and Stock Repurchase Program [Abstract]  
STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM

NOTE E – STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM

 

On August 25, 2022, the Company adopted the 2022 Equity Compensation Plan which provided for grants of up to 547,400 shares to be allocated between incentive and non-qualified stock options and restricted stock awards to officers, employees and directors of the Company and Magyar Bank. At December 31, 2023, 293,200 options and 124,320 shares of restricted stock had been awarded from the plan.

 

The following is a summary of the status of the Company’s stock option activity and related information for the three months ended December 31, 2023:

 

   Shares   Weighted
Average
Exercise Price
   Weighted
Average
Remaining
Contractual Life
in Years
   Aggregate
Intrinsic
Value
 
                 
Balance at September 30, 2023   293,200   $12.58    8.98   $
 
Granted   
    
    
    
 
Exercised   
    
    
    
 
Forfeited   
    
    
    
 
Expired   
    
    
    
 
Balance at December 31, 2023   293,200   $12.58    8.73   $
 
                     
Exercisable at December 31, 2023   58,640   $12.58    8.73   $
 

 

The following is a summary of the status of the Company’s non-vested restricted shares for the three months ended December 31, 2023:

 

   Shares   Weighted
Average Grant
Date Fair Value
 
Balance at September 30, 2023   124,320   $12.63 
Granted   
    
 
Vested   
    
 
Forfeited   
    
 
Balance at December 31, 2023   124,320   $12.63 

 

Stock option and stock award expenses included with compensation expense were $63,000 and $98,000 for the three months ended December 31, 2023 and $69,000 and $111,000 for the three months ended December 31, 2022. At December 31, 2023, total compensation cost not yet recognized for the Company’s unvested stock options and stock awards was $2.4 million. The Company had no other stock-based compensation plans as of December 31, 2023 except as disclosed below.

 

On December 8, 2022, the Company announced the authorization of fourth stock repurchase plan pursuant to which the Company intends to repurchase up to an additional 5% of its outstanding shares, or up to 337,146 shares, under which 120,062 shares had been repurchased at an average price of $11.51 through December 31, 2023. Under this stock repurchase program, 217,084 shares of the 337,146 shares authorized remained available for repurchase as of December 31, 2023. The Company’s intended use of the repurchased shares is for general corporate purposes. The Company held treasury stock shares totaling 442,873 at December 31, 2023. The timing of the repurchases will depend on certain factors, including but not limited to, market conditions and prices, the Company’s liquidity requirements and alternative uses of capital.

 

The Company has an Employee Stock Ownership Plan ("ESOP") for the benefit of employees who meet certain eligibility requirements. The ESOP trust purchases shares of common stock in the open market using proceeds of a loan from the Company. The loan is secured by shares of the Company’s stock. The Bank makes cash contributions to the ESOP on an annual basis sufficient to enable the ESOP to make the required loan payments to the Company. As the debt is repaid, shares are released as collateral and allocated to qualified employees. Accordingly, the shares pledged as collateral are reported as unearned ESOP shares in the Consolidated Balance Sheets. The Company accounts for its ESOP in accordance with FASB ASC Topic 718, “Employer’s Accounting for Employee Stock Ownership Plans.” As shares are released from collateral, the Company reports compensation expense equal to the current market price of the shares, and the shares become outstanding for earnings per share computations.

 

In connection with the Company’s second-step stock offering during its fiscal year ending September 30, 2021, the ESOP trustees purchased 312,800 shares of the Company’s common stock for $3.4 million, reflecting an average cost per share of $10.77. The ESOP loan bears a fixed interest rate of 3.25% with principal and interest payable annually in equal installments over 30 years.

 

At December 31, 2023, ESOP shares allocated to participants totaled 170,335. Unallocated ESOP shares held in suspense totaled 290,313 with an aggregate fair value of $3.3 million. The Company's contribution expense for the ESOP was $50,000 and $41,000 for the three months ended December 31, 2023 and 2022, respectively.

v3.24.0.1
OTHER COMPREHENSIVE INCOME (LOSS)
3 Months Ended
Dec. 31, 2023
Other Comprehensive Income (Loss) [Abstract]  
OTHER COMPREHENSIVE INCOME (LOSS)

NOTE F – OTHER COMPREHENSIVE INCOME (LOSS)

 

Comprehensive income (loss) includes net income as well as certain other items which result in a change to equity during the period. The Company recorded no reclassification adjustments during the three months ended December 31, 2023 and 2022. The components of other comprehensive income (loss) and the related income tax effects are as follows:

 

   Three Months Ended December 31, 
   2023   2022 
       Tax   Net of       Tax   Net of 
   Before Tax   (Benefit)   Tax   Before Tax   (Benefit)   Tax 
   Amount   Expense   Amount   Amount   Expense   Amount 
   (In thousands) 
Unrealized holding gain (loss) arising during period on:                              
Available-for-sale investments  $584   $(144)  $440   $206   $(50)  $156 
Other comprehensive income (loss), net  $584   $(144)  $440   $206   $(50)  $156 

 

(a) All amounts are net of tax. Related income tax expense or benefit calculated using an income tax rate approximating 25% for available-for-sale investments.

v3.24.0.1
FAIR VALUE DISCLOSURES
3 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
FAIR VALUE DISCLOSURES

NOTE G – FAIR VALUE DISCLOSURES

 

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The securities available-for-sale and the Company’s derivative assets and liabilities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets or liabilities on a non-recurring basis, such as held-to-maturity securities, mortgage servicing rights, loans receivable and OREO. These non-recurring fair value adjustments involve the application of lower-of-cost-or-market accounting or write-downs of individual assets.

 

In accordance with ASC 820, the Company groups its assets and liabilities at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:

 

  Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets.
     
  Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market.
     
  Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. The results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability.

 

The Company based its fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

 

The following is a description of valuation methodologies used for assets measured at fair value on a recurring basis.

 

Securities available-for-sale

The securities available-for-sale portfolio is carried at estimated fair value on a recurring basis, with any unrealized gains and losses, net of taxes, reported as accumulated other comprehensive income/loss in stockholders’ equity. The securities available-for-sale portfolio consists of U.S government-sponsored mortgage-backed securities. The fair values of these securities are obtained from an independent nationally recognized pricing service. An independent pricing service provides the Company with prices which are categorized as Level 2, as quoted prices in active markets for identical assets are generally not available for the securities in the Company’s portfolio. Various modeling techniques are used to determine pricing for Company’s mortgage-backed securities, including option pricing and discounted cash flow models. The inputs to these models include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data.

 

Derivatives

Magyar Bank executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. The fair values of such derivatives are based on valuation models from a third party using current market terms (including interest rates and fees), the remaining terms of the agreements and the credit worthiness of the counter party as of the measurement date (Level 2).

 

The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a recurring basis.

 

December 31, 2023  Total   Level 1   Level 2   Level 3 
Assets:  (In thousands) 
Securities available for sale:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $95   $
   $95   $
 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   12,178    
    12,178    
 
Total securities available for sale  $12,273   $
   $12,273   $
 
Derivative assets   1,961    
    1,961    
 
Total assets  $14,234   $
   $14,234   $
 
                     
Liabilities:                    
Derivative liabilities  $1,961   $
   $1,961   $
 
Total Liabilities  $1,961   $
   $1,961   $
 
                     
September 30, 2023                    
Assets:                    
Securities available for sale:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $92   $
   $92   $
 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   10,033    
    10,033    
 
Total securities available for sale  $10,125   $
   $10,125   $
 
Derivative assets   2,579    
    2,579    
 
Total assets  $12,704   $
   $12,704   $
 
                     
Liabilities:                    
Derivative liabilities  $2,579   $
   $2,579   $
 
Total Liabilities  $2,579   $
   $2,579   $
 

 

The following is a description of valuation methodologies used for assets measured at fair value on a non-recurring basis.

 

Collateral Dependent Loans

Collateral dependent loans are measured and reported at fair value through specific allocations of the allowance for credit losses based on the fair value of the underlying collateral.

 

The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a non-recurring basis at December 31, 2023 and September 30, 2023.

 

   Total   Level 1   Level 2   Level 3 
At December 31, 2023  (In thousands) 
                 
Collateral dependent loans  $777   $
   $
   $777 
Total  $777   $
   $
   $777 
                     
                     
At September 30, 2023                    
                     
Impaired loans  $777   $
   $
   $777 
Total  $777   $
   $
   $777 

 

The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Company has utilized Level 3 inputs to determine fair value:

 

Quantitative Information about Level 3 Fair Value Measurements

(Dollars in thousands)

 

   Fair Value   Valuation      
December 31, 2023  Estimate   Techniques  Unobservable Input  Range (Weighted Average)
               
Collateral dependent loans  $777   Appraisal of collateral (1)  Appraisal adjustments (2)  -50% to -8.0% (-12.0%)

 

              
   Fair Value   Valuation      
September 30, 2023  Estimate   Techniques  Unobservable Input  Range (Weighted Average)
               
Impaired loans  $777   Appraisal of collateral (1)  Appraisal adjustments (2)  -50% to -8.0% (-19.4%)

 

(1)Fair value is generally determined through independent appraisals for the underlying collateral, which generally include 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.

 

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments carried at cost or amortized cost as of December 31, 2023 and September 30, 2023.  For short-term financial assets such as cash and cash equivalents and accrued interest receivable, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as interest-bearing demand, NOW, and money market savings deposits, the carrying amount is a reasonable estimate of fair value due to these products being payable on demand and having no stated maturity.

 

   Carrying   Fair   Fair Value Measurement Placement 
   Value   Value   (Level 1)   (Level 2)   (Level 3) 
   (In thousands) 
December 31, 2023                         
Financial instruments - assets                         
Investment securities held to maturity  $84,333   $75,508   $
   $75,508   $
 
Loans   728,560    703,158    
    
    703,158 
                          
Financial instruments - liabilities                         
Certificates of deposit including retirement certificates   112,463    110,530    
    110,530    
 
Borrowings   28,796    27,930    
    27,930    
 
                          
September 30, 2023                         
Financial instruments - assets                         
Investment securities held-to-maturity  $85,835   $73,728   $
   $73,728   $
 
Loans   689,070    664,331    
    
    664,331 
                          
Financial instruments - liabilities                         
Certificates of deposit including retirement certificates   104,668    101,216    
    101,216    
 
Borrowings   29,515    28,177    
    28,177    
 
v3.24.0.1
INVESTMENT SECURITIES
3 Months Ended
Dec. 31, 2023
Investment Securities [Abstract]  
INVESTMENT SECURITIES

NOTE H - INVESTMENT SECURITIES

 

The following table summarizes the amortized cost and fair values of securities classified as available-for-sale and held-to-maturity at December 31, 2023:

 

       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
December 31, 2023  Cost   Gains   Losses   Value 
   (In thousands) 
Securities available-for-sale:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $103   $
   $(8)  $95 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   13,551    39    (1,412)   12,178 
Total securities available-for-sale  $13,654   $39   $(1,420)  $12,273 
Securities held-to-maturity:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $4,986   $
   $(677)  $4,309 
Mortgage-backed securities - commercial   2,484    
    (22)   2,462 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed-securities - residential   47,199    
    (6,229)   40,970 
Debt securities   22,999    6    (1,378)   21,627 
Private label mortgage-backed securities - residential   203    
    (10)   193 
Obligations of state and political subdivisions   3,462    5    (324)   3,143 
Corporate securities   3,000    
    (196)   2,804 
Total securities held-to-maturity  $84,333   $11   $(8,836)  $75,508 
Total investment securities  $97,987   $50   $(10,256)  $87,781 

 

The Company monitors the credit quality of held-to-maturity debt securities, primarily through their credit ratings by nationally recognized statistical ratings organizations, on a quarterly basis. At December 31, 2023, there were no non-performing held-to-maturity debt securities and no allowance for credit losses were required. The majority of the investment securities are explicitly or implicitly guaranteed by the United States government, and any estimate of expected credit losses would be insignificant to the Company. The following table summarizes the amortized cost of held-to-maturity debt securities at December 31, 2023, aggregated by credit quality indicator:

 

   Credit Rating 
   AAA/AA/A   BBB/BB/B   Non-rated 
December 31, 2023  (In thousands) 
Securities held-to-maturity:               
Obligations of U.S. government agencies:               
Mortgage-backed securities - residential  $4,986   $
   $
 
Mortgage-backed securities - commercial   2,484    
    
 
Obligations of U.S. government-sponsored enterprises:               
Mortgage backed securities - residential   47,199    
    
 
Debt securities   22,999    
    
 
Private label mortgage-backed securities - residential   
    
    203 
Obligations of state and political subdivisions   3,462    
    
 
Corporate securities   
    3,000    
 
Totals  $81,130   $3,000   $203 

 

The contractual maturities of debt securities, municipal bonds and certain information regarding mortgage-backed securities at December 31, 2023 are summarized in the following table:

 

   December 31, 2023 
   Amortized   Fair 
   Cost   Value 
   (In thousands) 
Due within 1 year  $4,000   $3,966 
Due after 1 but within 5 years   20,526    19,315 
Due after 5 but within 10 years   4,935    4,293 
Due after 10 years   
    
 
Total debt securities   29,461    27,574 
           
Mortgage backed securities:          
Residential   66,042    57,745 
Commercial   2,484    2,462 
Total  $97,987   $87,781 

 

The following table summarizes the amortized cost and fair values of securities classified as available-for-sale and held-to-maturity at September 30, 2023:

       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
September 30, 2023  Cost   Gains   Losses   Value 
   (In thousands) 
Securities available-for-sale:                    
Obligations of U.S. government agencies:                    
Mortgage backed securities - residential  $106   $
   $(14)  $92 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   11,984    
    (1,951)   10,033 
Total securities available for sale  $12,090   $
   $(1,965)  $10,125 
Securities held-to-maturity:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $5,070   $
   $(850)  $4,220 
Mortgage-backed securities - commercial   2,509    
    (16)   2,493 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage backed securities - residential   48,086    
    (8,480)   39,606 
Debt securities   23,497    
    (1,947)   21,550 
Private label mortgage-backed securities - residential   207    
    (12)   195 
Obligations of state and political subdivisions   3,466    
    (605)   2,861 
Corporate securities   3,000    
    (197)   2,803 
Total securities held to maturity  $85,835   $
   $(12,107)  $73,728 
Total investment securities  $97,925   $
   $(14,072)  $83,853 

 

As of December 31, 2023 investment securities having an estimated fair value of approximately $12.2 million were pledged to secure public deposits.

v3.24.0.1
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE
3 Months Ended
Dec. 31, 2023
Credit Losses on Investment Securities Available-for-Sale [Abstract]  
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE

NOTE I – CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE

 

The Company recognizes an allowance for credit losses on debt securities in earnings through a provision for credit losses while noncredit-related impairment on debt securities not expected to be sold are recognized in other comprehensive income.

 

The Company reviews its investment portfolio on a quarterly basis for indications of credit losses. This review includes analyzing the extent to which the fair value has been lower than the cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and the intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in the market. The Company evaluates its intent and ability to hold debt securities based upon its investment strategy for the particular type of security and its cash flow needs, liquidity position, capital adequacy and interest rate risk position. In addition, the risk of future credit losses may be influenced by prolonged recession in the U.S. economy, changes in real estate values and interest deferrals.

 

Investment securities with fair values greater than their amortized cost contain unrealized gains. Investment securities with fair values less than their amortized cost contain unrealized losses. Details of available-for-sale securities with unrealized losses at December 31, 2023 are as follows:

 

       Less Than 12 Months   12 Months Or Greater   Total 
   Number of   Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
   Securities   Value   Losses   Value   Losses   Value   Losses 
December 31, 2023  (Dollars in thousands)
Obligations of U.S. government agencies:                                   
Mortgage-backed securities - residential   1   $
   $
   $95   $(8)  $95   $(8)
Obligations of U.S. government-sponsored enterprises                                   
Mortgage-backed securities - residential   9    1,879    (9)   7,929    (1,403)   9,808    (1,412)
Total   10   $1,879   $(9)  $8,024   $(1,411)  $9,903   $(1,420)

 

Prior to the adoption of ASU 2016-13, details of our entire investment portfolio were required to be disclosed. Accordingly, details of our held-to-maturity and available-for-sale investment securities with unrealized losses at September 30, 2023 were as follows:

 

       Less Than 12 Months   12 Months Or Greater   Total 
   Number of   Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
   Securities   Value   Losses   Value   Losses   Value   Losses 
September 30, 2023  (Dollars in thousands)
Obligations of U.S. government agencies:                                   
Mortgage-backed securities - residential   6   $
   $
   $4,312   $(864)  $4,312   $(864)
Mortgage-backed securities - commercial   2    1,926    (14)   567    (2)   2,493    (16)
Obligations of U.S. government-sponsored enterprises                                   
Mortgage-backed securities - residential   50    4,938    (49)   44,485    (10,382)   49,423    (10,431)
Debt securities   12    
    
    21,550    (1,947)   21,550    (1,947)
Private label mortgage-backed securities residential   1    
    
    195    (12)   195    (12)
Obligations of state and political subdivisions   7    789    (43)   2,072    (562)   2,861    (605)
Corporate securities   1    
    
    2,803    (197)   2,803    (197)
Total   79   $7,653   $(106)  $75,984   $(13,966)  $83,637   $(14,072)

 

The investment securities listed above currently have fair values less than amortized cost and therefore contain unrealized losses. The Company evaluated these securities and determined that the decline in value was primarily related to fluctuations in the interest rate environment and were not related to any company or industry specific event.

 

The Company anticipates full recovery of amortized costs with respect to these securities. The Company does not intend to sell these securities and has determined that it is not more likely than not that the Company would be required to sell these securities prior to maturity or market price recovery. Management has considered factors regarding credit losses and determined that there are no allowance for credit loss was required as of December 31, 2023.

v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses
3 Months Ended
Dec. 31, 2023
Loans Receivable, Net [Abstract]  
LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR CREDIT LOSSES

NOTE J – LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR CREDIT LOSSES

 

Loans receivable, net were comprised of the following:

 

   December 31,   September 30, 
   2023   2023 
   (In thousands) 
         
One-to-four family residential  $234,156   $237,683 
Commercial real estate   407,346    389,134 
Construction and land   34,641    21,853 
Home equity loans and lines of credit   24,069    16,983 
Commercial business   27,043    30,194 
Other   2,239    2,359 
Total loans receivable   729,494    698,206 
Net deferred loan costs   (934)   (806)
Total loans receivable, net  $728,560   $697,400 

 

The segments of the Company’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The residential mortgage loan segment is further disaggregated into two classes: first lien, amortizing term loans, and the combination of second lien amortizing term loans and home equity lines of credit. The commercial loan segment is further disaggregated into three classes: loans secured by multifamily structures, loans secured by owner-occupied commercial structures, and loans secured by non-owner occupied nonresidential properties. The construction loan segment consists primarily of developers or investors for the purpose of acquiring, developing and constructing residential or commercial structures and to a lesser extent one-to-four family residential construction loans made to individuals for the acquisition of and/or construction on a lot or lots on which a residential dwelling is to be built. Construction loans to developers and investors have a higher risk profile because the ultimate buyer, once development is completed, is generally not known at the time of the loan. The commercial business loan segment consists of loans made for the purpose of financing the activities of commercial customers and consists of revolving lines of credit and loans partially guaranteed by the U.S. Small Business Administration. The consumer loan segment consists primarily of stock-secured installment loans, but also includes unsecured personal loans and overdraft lines of credit connected with customer deposit accounts.

 

Management uses a ten point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized, and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. All loans greater than three months past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category.

 

To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process with several layers of internal and external oversight.  Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as severe delinquency, bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Company’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. The Company’s Asset Review Committee performs monthly reviews of all commercial relationships internally rated 6 (“Watch”) or worse.  Confirmation of the appropriate risk grade is performed by an external loan review company that semi-annually reviews and assesses loans within the portfolio.  Generally, the external consultant reviews commercial relationships greater than $500,000 and/or criticized relationships greater than $250,000. Detailed reviews, including plans for resolution, are performed on loans classified as Substandard on a monthly basis. 

 

The following table presents the classes of the loan portfolio by origination year summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful for loans subject to the Company’s internal risk rating system and by performing status for all other loans as of December 31, 2023.

                           Revolving Loans     
   December 31, 2023   Amortized   Converted     
   Term Loans Amortized Cost Basis by Origination Fiscal Year   Cost Basis   to Term   Total 
   2024   2023   2022   2021   2020   Prior             
   (In thousands) 
One-to-four family residential                                             
Performing  $7,180   $43,224   $33,060   $27,899   $31,288   $91,353   $
   $
   $234,004 
Non-performing   
    
    
    
    
    152    
    
    152 
Total  $7,180   $43,224   $33,060   $27,899   $31,288   $91,505   $
   $
   $234,156 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Commercial real estate                                             
Pass  $18,235   $82,558   $68,224   $66,529   $30,007   $131,540   $6,373   $1,540   $405,006 
Special Mention   
    
    
    
    
    116    
    
    116 
Substandard   
    
    2,224    
    
    
    
    
    2,224 
Doubtful   
    
    
    
    
    
    
    
    
 
Total  $18,235   $82,558   $70,448   $66,529   $30,007   $131,656   $6,373   $1,540   $407,346 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Construction and land                                             
Pass  $10,368   $12,297   $2,351   $
   $1,761   $4,665   $725   $
   $32,167 
Special Mention   
    
    
    
    
    
    
    
    
 
Substandard   
    
    
    
    
    2,474    
    
    2,474 
Doubtful   
    
    
    
    
    
    
    
    
 
Total  $10,368   $12,297   $2,351   $
   $1,761   $7,139   $725   $
   $34,641 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Home equity loans and lines of credit                                             
Performing  $724   $1,678   $1,657   $342   $277   $1,438   $17,953   $
   $24,069 
Non-performing   
    
    
    
    
    
    
    
    
 
Total  $724   $1,678   $1,657   $342   $277   $1,438   $17,953   $
   $24,069 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Commercial business                                             
Pass  $1,030   $542   $2,685   $2,047   $946   $3,390   $16,403   $
   $27,043 
Special Mention   
    
    
    
    
    
    
    
    
 
Substandard   
    
    
    
    
    
    
    
    
 
Doubtful   
    
    
    
    
    
    
    
    
 
Total  $1,030   $542   $2,685   $2,047   $946   $3,390   $16,403   $
   $27,043 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Other                                             
Performing  $
   $
   $65   $1   $13   $1,793   $367   $
   $2,239 
Non-performing   
    
    
    
    
    
    
    
    
 
Total  $
   $
   $65   $1   $13   $1,793   $367   $
   $2,239 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 

 

Information presented in the table above is not required for periods prior to the adoption of ASU 2016-13. The following table presents more comparable information of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the Bank’s internal risk rating system as of September 30, 2023.

 

       Special             
   Pass   Mention   Substandard   Doubtful   Total 
   (In thousands) 
September 30, 2023                         
One-to-four family residential  $236,876   $
   $807   $
   $237,683 
Commercial real estate   386,794    116    2,224    
    389,134 
Construction   19,379    
    2,474    
    21,853 
Home equity lines of credit   16,983    
    
    
    16,983 
Commercial business   30,194    
    
    
    30,194 
Other   2,359    
    
    
    2,359 
Total  $692,585   $116   $5,505   $
   $698,206 

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 past due. The Bank was not accruing interest on any loans delinquent greater than 90 days. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans for the periods presented:

 

       30-59   60-89         
       Days   Days   90 Days +   Total 
   Current   Past Due   Past Due   Past Due   Loans 
   (In thousands) 
December 31, 2023                         
One-to-four family residential  $232,710   $1,056   $238   $152   $234,156 
Commercial real estate   404,315    690    116    2,225    407,346 
Construction   32,167    
    
    2,474    34,641 
Home equity lines of credit   24,069    
    
    
    24,069 
Commercial business   26,404    639    
    
    27,043 
Other   2,239    
    
    
    2,239 
Total  $721,904   $2,385   $354   $4,851   $729,494 

  

       30-59   60-89         
       Days   Days   90 Days +   Total 
   Current   Past Due   Past Due   Past Due   Loans 
   (In thousands) 
September 30, 2023                         
One-to four-family residential  $236,729   $
   $568   $386   $237,683 
Commercial real estate   386,794    
    116    2,224    389,134 
Construction   19,379    
    
    2,474    21,853 
Home equity lines of credit   16,983    
    
    
    16,983 
Commercial business   30,047    147    
    
    30,194 
Other   2,359    
    
    
    2,359 
Total  $692,291   $147   $684   $5,084   $698,206 

 

The following tables present our non-accrual loans and the related allowance for credit loss by loan type as of December 31, 2023 and the non-accrual loans and specific reserves by loan type as of September 30, 2023.

 

   Non-   Allowance for 
   Accrual   Credit Loss 
   (In  thousands) 
December 31, 2023          
One-to-four family residential  $152   $
 
Commercial real estate   2,225    
 
Construction and land   2,474    
 
Home loans and lines of credit   
    
 
Commercial business   
    
 
Total  $4,851   $
 

 

   Non-   Specific 
   Accrual   Reserve 
   (In  thousands) 
September 30, 2023          
One-to four-family residential  $386   $
 
Commercial real estate   2,224    
 
Construction and land   2,474    
 
Home equity lines of credit   
    
 
Commercial business   
    
 
Other   
    
 
Total  $5,084   $
 

 

The following table identifies our non-performing, collateral dependent loans by collateral type as of December 31, 2023:

 

   December 31, 
   2023 
   (In thousands) 
One- to four-family residential  $152 
Commercial real estate   2,225 
Land   2,474 
Total  $4,851 

 

The Company’s adoption of ASU 2016-13 eliminated the requirement to disclose impaired loans. The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2023:

 

           Impaired         
           Loans with         
   Impaired Loans with   No Specific         
   Specific Allowance   Allowance   Total Impaired Loans 
                   Unpaid 
   Recorded   Related   Recorded   Recorded   Principal 
   Investment   Allowance   Investment   Investment   Balance 
September 30, 2023  (In thousands) 
                     
One-to four-family residential  $
   $
   $2,031   $2,031   $2,031 
Commercial real estate   
    
    2,969    2,969    2,969 
Construction   
    
    2,474    2,474    2,539 
Commercial business   
    
    147    147    147 
Total impaired loans  $
   $
   $7,621   $7,621   $7,686 

 

The following table presents the average recorded investment in impaired loans and the interest income recognized on impaired loans for the three months ended December 31, 2022.

 

   Three Months Ended 
   December 31, 2022 
   (In thousands) 
     
One-to-four family residential  $1,447 
Commercial real estate   1,269 
Construction   2,835 
Commercial business   203 
Average investment in impaired loans  $5,754 
      
Interest income recognized on     
an accrual basis on impaired loans     
One-to-four family residential  $20 
Commercial real estate   13 
Commercial business   2 
Total  $35 

 

An allowance for credit losses (“ACL”) is maintained to absorb losses from the loan portfolio. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ACL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ACL. Since loans individually evaluated for impairment are promptly written down to their fair value, typically there is no portion of the ACL for loans individually evaluated for impairment.

 

ASU 2016-13 requires estimated credit losses on loans to be determined based on an expected life of loan model, as compared to an incurred loss model (in effect for periods prior to October 1, 2023).  Accordingly, the allowance for losses disclosures subsequent to October 1, 2023 are not always comparable to prior dates. In addition, certain new disclosures required under ASU 2016-13 are not applicable to prior periods.  As a result, the following tables present disclosures separately for each period, where appropriate.  New disclosures required under ASU 2016-13 are only shown for the current period.  Please refer to Note B “Summary of Significant Accounting Policies” for a summary of the impact of adopting the provisions of ASU 2016-13 on October 1, 2023.

 

The following tables set forth the allocation of the Bank’s allowance for credit losses by loan category at the dates indicated. The portion of the credit loss allowance allocated to each loan category does not represent the total available for future losses which may occur within the loan category since the total credit loss allowance is a valuation allocation applicable to the entire loan portfolio. The Company generally charges-off the collateral or discounted cash flow deficiency on all loans at 90 days past due and all loans rated substandard or worse that are 90 days past due.

The following table presents, by loan category, the changes in the allowance for credit losses for the three months ended December 31, 2023 and the allowance for loan losses for the three months ended December 31, 2022.

   One-to-Four           Home Equity                 
   Family   Commercial       Lines of   Commercial             
   Residential   Real Estate   Construction   Credit   Business   Other   Unallocated   Total 
   (In  thousands) 
                                 
Balance- September 30, 2023  $1,259   $5,277   $472   $207   $939   $2   $174   $8,330 
Effect of adopting ASU 2016-13   7    (589)   (55)   (87)   (133)   (1)   (174)   (1,032)
Charge-offs   
    
    
    
    
    
    
    
 
Recoveries   
    
    
    
    
    
    
    
 
Provision (credit)   (75)   161    301    (40)   39    (1)   
    385 
Balance- December 31, 2023  $1,191   $4,849   $718   $80   $845   $
   $
   $7,683 
                                         
Balance- September 30, 2022  $1,223   $4,612   $461   $263   $1,484   $1   $389   $8,433 
Charge-offs   
    
    
    
    
    
    
    
 
Recoveries   
    
    
    
    
    
    
    
 
Provision (credit)   12    518    65    (7)   (109)   
    (162)   317 
Balance- December 31, 2022  $1,235   $5,130   $526   $256   $1,375   $1   $227   $8,750 

 

During the three months ended December 31, 2023 and exclusive of the impact of the adoption of ASU 2016-13, the changes in the provision for credit losses for each portfolio of loans were primarily due to fluctuations in the outstanding balance of each segment of loans collectively evaluated for impairment. Specifically, we experienced significant growth in our commercial real estate and construction loan portfolios during the three months ended December 31, 2023 and a corresponding increase in the provision for credit losses for these portfolios. The overall increase in the allowance during the three months ended December 31, 2023 is attributed to the previously mentioned growth in our commercial real estate and construction portfolios, partially offset by improved economic metrics with continued low levels of net charge-offs and a decrease in non-performing assets.

 

The following table presents, by loan category, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of and September 30, 2023.

 

   One-to-Four           Home Equity                 
   Family   Commercial       Lines of   Commercial             
   Residential   Real Estate   Construction   Credit   Business   Other   Unallocated   Total 
   (In  thousands) 
Allowance for Loan Losses:                                        
Balance - September 30, 2023  $1,259   $5,277   $472   $207   $939   $2   $174   $8,330 
Individually evaluated                                        
for impairment   
    
    
    
    
    
    
    
 
Collectively evaluated                                        
for impairment   1,259    5,277    472    207    939    2    174    8,330 
                                         
Loans receivable:                                        
Balance - September 30, 2023  $237,683   $389,134   $21,853   $16,983   $30,194   $2,359   $
   $698,206 
Individually evaluated                                        
for impairment   2,031    2,969    2,474    
    147    
    
    7,621 
Collectively evaluated                                        
for impairment   235,652    386,165    19,379    16,983    30,047    2,359    
    690,585 

 

During the three months ended December 31, 2023, there were no loans modified to borrowers experiencing financial difficulty. During the three months ended December 31, 2022, there was one loan modified that was identified as a troubled debt restructuring (“TDR”) and there were no TDRs that subsequently defaulted within twelve months of modification.

   Three Months Ended December 31, 2022 
   Number of   Investment Before   Investment After 
   Loans   TDR Modification   TDR Modification 
   (Dollars in thousands) 
One-to four-family residential   1   $97   $107 
                
Total   1   $97   $107 

 

There were no residential loans in the process of foreclosure at December 31, 2023.

v3.24.0.1
DEPOSITS
3 Months Ended
Dec. 31, 2023
Deposits [Abstract]  
DEPOSITS

NOTE K - DEPOSITS

 

A summary of deposits by type of account are summarized as follows:

 

   December 31,   September 30, 
   2023   2023 
   (In thousands) 
         
Demand accounts  $164,453   $188,550 
Savings accounts   60,008    62,168 
NOW accounts   119,738    115,182 
Money market accounts   306,886    284,885 
Certificates of deposit   100,547    92,725 
Retirement certificates   11,916    11,943 
Total deposits  $763,548   $755,453 

 

Included in Company’s deposits at December 31, 2023 were $13.8 million in brokered certificates of deposits and $15.5 million in certificate of deposits obtained through a national deposit listing service. At September 30, 2023 the Company had $13.8 million in brokered certificates of deposits and $14.0 million in certificate of deposits obtained through a national deposit listing service.

 

At December 31, 2023 and September 30, 2023, the aggregate deposits in amounts greater than $250,000, which is the maximum amount for federal deposit insurance, were $456.7 million and $429.9 million, respectively. The estimated amount of deposits that were neither insured nor collateralized was $120.2 million and $109.3 million at December 31, 2023 and September 30, 2023, respectively.

v3.24.0.1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
3 Months Ended
Dec. 31, 2023
Financial Instruments with Off-Balance-Sheet Risk [Abstract]  
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK

NOTE L - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

 

The Company may use derivative financial instruments, such as interest rate swaps and interest rate floors and caps, as part of its interest rate risk management. Interest rate caps and floors are agreements whereby one party agrees to pay or receive a floating rate of interest on a notional principal amount for a predetermined period of time if certain market interest rate thresholds are met. The Company considers the credit risk inherent in these contracts to be negligible. As of December 31, 2023, the Company did not hold any interest rate floors or collars.

 

The Company is a party to interest rate derivatives that are not designated as hedging instruments. Under a program, the Company executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that the Company executes with a third-party financial institution, such that the Company minimizes its net risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties. The Company was not required to pledge any collateral for its interest rate swaps with financial institutions at December 31, 2023 and September 30, 2023.

 

The following table presents summary information regarding these derivatives as of December 31, 2023 and September 30, 2023.

 

   Notional
Amount
   Average
Maturiy
(Years)
   Weighted
Average
Fixed Rate
   Weighted Average
Variable Rate
  Fair Value 
   (Dollars in thousands) 
December 31, 2023                   
Classified in Other Assets:                       
Customer interest rate swaps  $35,743    3.9    4.96%    1 Mo. BSBY + 2.44  $1,961 
Total  $35,743    3.9    4.96%      $1,961 
                        
Classified in Other Liabilities:                       
3rd Party interest rate swaps  $35,743    3.9    4.96%    1 Mo. BSBY + 2.44  $1,961 
Total  $35,743    3.9    4.96%      $1,961 
                        
September 30, 2023                       
Classified in Other Assets:                       
Customer interest rate swaps  $36,020    4.2    4.96%    1 Mo. BSBY + 2.44  $2,579 
Total  $36,020    4.2    4.96%      $2,579 
                        
Classified in Other Liabilities:                       
3rd Party interest rate swaps  $36,020    4.2    4.96%    1 Mo. BSBY + 2.44  $2,579 
Total  $36,020    4.2    4.96%      $2,579 

 

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit and are summarized in the below table. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.

 

   December 31,   September 30, 
   2023   2023 
   (In thousands) 
         
Financial instruments whose contract amounts represent credit risk          
Letters of credit  $1,098   $1,073 
Unused lines of credit   95,333    89,933 
Fixed rate loan commitments   15,610    3,578 
Variable rate loan commitments   4,969    26,472 
Totals  $117,010   $121,056 

 

Upon adoption of ASU 2016-13 on October 1, 2023, the Company recorded an allowance for credit losses for its unused lines of credit and unfunded commitments totaling $540,000. The Company’s reserves for off-balance sheet credit losses increased to $637,000 at December 31, 2023 from $0 at September 30, 2023.

v3.24.0.1
RECENT ACCOUNTING PRONOUNCEMENTS (Tables)
3 Months Ended
Dec. 31, 2023
Recent Accounting Pronouncements [Abstract]  
Schedule of Change from the Incurred Loss Model to the Current Expected Credit Loss Model The impact of the change from the incurred loss model to the current expected credit loss model is included in the following table:
   October 1, 2023 
       Adoption     
   Pre-adoption   Impact   As Reported 
   (In thousands) 
Assets            
ACL on debt securities held-to-maturity  $
   $
   $
 
ACL on loans               
One-to-four family residential   1,259    7    1,266 
Commercial real estate   5,277    (589)   4,688 
Construction   472    (55)   417 
Home equity lines of credit   207    (87)   120 
Commercial business   939    (133)   806 
Other   176    (175)   1 
                
Liabilities               
ACL on unfunded commitments   
    540    540 
Total  $8,330   $(492)  $7,838 
v3.24.0.1
EARNINGS PER SHARE (Tables)
3 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share The following table presents a calculation of basic and diluted earnings per share for the three months ended December 31, 2023 and 2022. Basic and diluted earnings per share were calculated by dividing net income by the weighted-average number of shares outstanding for the periods.
   For the Three Months 
   Ended December 31, 
   2023   2022 
   (Dollars in thousands, except share and per share data) 
         
Income applicable to common shares  $1,652   $1,810 
Weighted average common shares outstanding- basic   6,387,010    6,456,525 
Potential diliutive common stock equivalents   
    2,921 
Weighted average common shares outstanding- diluted   6,387,010    6,459,446 
Earnings per share - basic  $0.26   $0.28 
Earnings per share - diluted  $0.26   $0.28 
v3.24.0.1
STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM (Tables)
3 Months Ended
Dec. 31, 2023
Stock-Based Compensation and Stock Repurchase Program [Abstract]  
Schedule of Stock Option Activity The following is a summary of the status of the Company’s stock option activity and related information for the three months ended December 31, 2023:
   Shares   Weighted
Average
Exercise Price
   Weighted
Average
Remaining
Contractual Life
in Years
   Aggregate
Intrinsic
Value
 
                 
Balance at September 30, 2023   293,200   $12.58    8.98   $
 
Granted   
    
    
    
 
Exercised   
    
    
    
 
Forfeited   
    
    
    
 
Expired   
    
    
    
 
Balance at December 31, 2023   293,200   $12.58    8.73   $
 
                     
Exercisable at December 31, 2023   58,640   $12.58    8.73   $
 
Schedule of Non-vested Restricted Shares The following is a summary of the status of the Company’s non-vested restricted shares for the three months ended December 31, 2023:
   Shares   Weighted
Average Grant
Date Fair Value
 
Balance at September 30, 2023   124,320   $12.63 
Granted   
    
 
Vested   
    
 
Forfeited   
    
 
Balance at December 31, 2023   124,320   $12.63 
v3.24.0.1
OTHER COMPREHENSIVE INCOME (LOSS) (Tables)
3 Months Ended
Dec. 31, 2023
Other Comprehensive Income (Loss) [Abstract]  
Schedule of Components of Other Comprehensive Income (Loss) and the Related Income Tax Effects The Company recorded no reclassification adjustments during the three months ended December 31, 2023 and 2022. The components of other comprehensive income (loss) and the related income tax effects are as follows:
   Three Months Ended December 31, 
   2023   2022 
       Tax   Net of       Tax   Net of 
   Before Tax   (Benefit)   Tax   Before Tax   (Benefit)   Tax 
   Amount   Expense   Amount   Amount   Expense   Amount 
   (In thousands) 
Unrealized holding gain (loss) arising during period on:                              
Available-for-sale investments  $584   $(144)  $440   $206   $(50)  $156 
Other comprehensive income (loss), net  $584   $(144)  $440   $206   $(50)  $156 

 

v3.24.0.1
FAIR VALUE DISCLOSURES (Tables)
3 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Assets Measured At Fair Value on a Recurring Basis The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a recurring basis.
December 31, 2023  Total   Level 1   Level 2   Level 3 
Assets:  (In thousands) 
Securities available for sale:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $95   $
   $95   $
 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   12,178    
    12,178    
 
Total securities available for sale  $12,273   $
   $12,273   $
 
Derivative assets   1,961    
    1,961    
 
Total assets  $14,234   $
   $14,234   $
 
                     
Liabilities:                    
Derivative liabilities  $1,961   $
   $1,961   $
 
Total Liabilities  $1,961   $
   $1,961   $
 
                     
September 30, 2023                    
Assets:                    
Securities available for sale:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $92   $
   $92   $
 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   10,033    
    10,033    
 
Total securities available for sale  $10,125   $
   $10,125   $
 
Derivative assets   2,579    
    2,579    
 
Total assets  $12,704   $
   $12,704   $
 
                     
Liabilities:                    
Derivative liabilities  $2,579   $
   $2,579   $
 
Total Liabilities  $2,579   $
   $2,579   $
 
Schedule of Assets Measured At Fair Value on a Non-Recurring Basis The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a non-recurring basis at December 31, 2023 and September 30, 2023.
   Total   Level 1   Level 2   Level 3 
At December 31, 2023  (In thousands) 
                 
Collateral dependent loans  $777   $
   $
   $777 
Total  $777   $
   $
   $777 
                     
                     
At September 30, 2023                    
                     
Impaired loans  $777   $
   $
   $777 
Total  $777   $
   $
   $777 
Schedule of Quantitative Information about Assets Measured At Fair Value on a Nonrecurring Basis for Which Level 3 Inputs Were Used To Determine Fair Value The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Company has utilized Level 3 inputs to determine fair value:
   Fair Value   Valuation      
December 31, 2023  Estimate   Techniques  Unobservable Input  Range (Weighted Average)
               
Collateral dependent loans  $777   Appraisal of collateral (1)  Appraisal adjustments (2)  -50% to -8.0% (-12.0%)
              
   Fair Value   Valuation      
September 30, 2023  Estimate   Techniques  Unobservable Input  Range (Weighted Average)
               
Impaired loans  $777   Appraisal of collateral (1)  Appraisal adjustments (2)  -50% to -8.0% (-19.4%)
(1)Fair value is generally determined through independent appraisals for the underlying collateral, which generally include 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.
Schedule of the Carrying Amount, Fair Value, and Placement in the Fair Value Hierarchy of Financial Instruments Carried At Cost or Amortized Cost The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments carried at cost or amortized cost as of December 31, 2023 and September 30, 2023.
   Carrying   Fair   Fair Value Measurement Placement 
   Value   Value   (Level 1)   (Level 2)   (Level 3) 
   (In thousands) 
December 31, 2023                         
Financial instruments - assets                         
Investment securities held to maturity  $84,333   $75,508   $
   $75,508   $
 
Loans   728,560    703,158    
    
    703,158 
                          
Financial instruments - liabilities                         
Certificates of deposit including retirement certificates   112,463    110,530    
    110,530    
 
Borrowings   28,796    27,930    
    27,930    
 
                          
September 30, 2023                         
Financial instruments - assets                         
Investment securities held-to-maturity  $85,835   $73,728   $
   $73,728   $
 
Loans   689,070    664,331    
    
    664,331 
                          
Financial instruments - liabilities                         
Certificates of deposit including retirement certificates   104,668    101,216    
    101,216    
 
Borrowings   29,515    28,177    
    28,177    
 
v3.24.0.1
INVESTMENT SECURITIES (Tables)
3 Months Ended
Dec. 31, 2023
Investment Securities [Abstract]  
Schedule of Amortized Cost and Fair Values of Securities Held to Maturity The following table summarizes the amortized cost and fair values of securities classified as available-for-sale and held-to-maturity at December 31, 2023:
       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
December 31, 2023  Cost   Gains   Losses   Value 
   (In thousands) 
Securities available-for-sale:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $103   $
   $(8)  $95 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   13,551    39    (1,412)   12,178 
Total securities available-for-sale  $13,654   $39   $(1,420)  $12,273 
Securities held-to-maturity:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $4,986   $
   $(677)  $4,309 
Mortgage-backed securities - commercial   2,484    
    (22)   2,462 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed-securities - residential   47,199    
    (6,229)   40,970 
Debt securities   22,999    6    (1,378)   21,627 
Private label mortgage-backed securities - residential   203    
    (10)   193 
Obligations of state and political subdivisions   3,462    5    (324)   3,143 
Corporate securities   3,000    
    (196)   2,804 
Total securities held-to-maturity  $84,333   $11   $(8,836)  $75,508 
Total investment securities  $97,987   $50   $(10,256)  $87,781 
The following table summarizes the amortized cost of held-to-maturity debt securities at December 31, 2023, aggregated by credit quality indicator:
   Credit Rating 
   AAA/AA/A   BBB/BB/B   Non-rated 
December 31, 2023  (In thousands) 
Securities held-to-maturity:               
Obligations of U.S. government agencies:               
Mortgage-backed securities - residential  $4,986   $
   $
 
Mortgage-backed securities - commercial   2,484    
    
 
Obligations of U.S. government-sponsored enterprises:               
Mortgage backed securities - residential   47,199    
    
 
Debt securities   22,999    
    
 
Private label mortgage-backed securities - residential   
    
    203 
Obligations of state and political subdivisions   3,462    
    
 
Corporate securities   
    3,000    
 
Totals  $81,130   $3,000   $203 
The following table summarizes the amortized cost and fair values of securities classified as available-for-sale and held-to-maturity at September 30, 2023:
       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
September 30, 2023  Cost   Gains   Losses   Value 
   (In thousands) 
Securities available-for-sale:                    
Obligations of U.S. government agencies:                    
Mortgage backed securities - residential  $106   $
   $(14)  $92 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   11,984    
    (1,951)   10,033 
Total securities available for sale  $12,090   $
   $(1,965)  $10,125 
Securities held-to-maturity:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $5,070   $
   $(850)  $4,220 
Mortgage-backed securities - commercial   2,509    
    (16)   2,493 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage backed securities - residential   48,086    
    (8,480)   39,606 
Debt securities   23,497    
    (1,947)   21,550 
Private label mortgage-backed securities - residential   207    
    (12)   195 
Obligations of state and political subdivisions   3,466    
    (605)   2,861 
Corporate securities   3,000    
    (197)   2,803 
Total securities held to maturity  $85,835   $
   $(12,107)  $73,728 
Total investment securities  $97,925   $
   $(14,072)  $83,853 
Schedule of Maturities Debt Securities and Mortgage Backed Securities Held to Maturity The contractual maturities of debt securities, municipal bonds and certain information regarding mortgage-backed securities at December 31, 2023 are summarized in the following table:
   December 31, 2023 
   Amortized   Fair 
   Cost   Value 
   (In thousands) 
Due within 1 year  $4,000   $3,966 
Due after 1 but within 5 years   20,526    19,315 
Due after 5 but within 10 years   4,935    4,293 
Due after 10 years   
    
 
Total debt securities   29,461    27,574 
           
Mortgage backed securities:          
Residential   66,042    57,745 
Commercial   2,484    2,462 
Total  $97,987   $87,781 
v3.24.0.1
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables)
3 Months Ended
Dec. 31, 2023
Credit Losses on Investment Securities Available-for-Sale [Abstract]  
Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses Investment securities with fair values less than their amortized cost contain unrealized losses. Details of available-for-sale securities with unrealized losses at December 31, 2023 are as follows:
       Less Than 12 Months   12 Months Or Greater   Total 
   Number of   Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
   Securities   Value   Losses   Value   Losses   Value   Losses 
December 31, 2023  (Dollars in thousands)
Obligations of U.S. government agencies:                                   
Mortgage-backed securities - residential   1   $
   $
   $95   $(8)  $95   $(8)
Obligations of U.S. government-sponsored enterprises                                   
Mortgage-backed securities - residential   9    1,879    (9)   7,929    (1,403)   9,808    (1,412)
Total   10   $1,879   $(9)  $8,024   $(1,411)  $9,903   $(1,420)

 

       Less Than 12 Months   12 Months Or Greater   Total 
   Number of   Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
   Securities   Value   Losses   Value   Losses   Value   Losses 
September 30, 2023  (Dollars in thousands)
Obligations of U.S. government agencies:                                   
Mortgage-backed securities - residential   6   $
   $
   $4,312   $(864)  $4,312   $(864)
Mortgage-backed securities - commercial   2    1,926    (14)   567    (2)   2,493    (16)
Obligations of U.S. government-sponsored enterprises                                   
Mortgage-backed securities - residential   50    4,938    (49)   44,485    (10,382)   49,423    (10,431)
Debt securities   12    
    
    21,550    (1,947)   21,550    (1,947)
Private label mortgage-backed securities residential   1    
    
    195    (12)   195    (12)
Obligations of state and political subdivisions   7    789    (43)   2,072    (562)   2,861    (605)
Corporate securities   1    
    
    2,803    (197)   2,803    (197)
Total   79   $7,653   $(106)  $75,984   $(13,966)  $83,637   $(14,072)
v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses (Tables)
3 Months Ended
Dec. 31, 2023
Loans Receivable, Net [Abstract]  
Schedule of Loans Receivable Loans receivable, net were comprised of the following:
   December 31,   September 30, 
   2023   2023 
   (In thousands) 
         
One-to-four family residential  $234,156   $237,683 
Commercial real estate   407,346    389,134 
Construction and land   34,641    21,853 
Home equity loans and lines of credit   24,069    16,983 
Commercial business   27,043    30,194 
Other   2,239    2,359 
Total loans receivable   729,494    698,206 
Net deferred loan costs   (934)   (806)
Total loans receivable, net  $728,560   $697,400 
Schedule of Loan Portfolio The following table presents the classes of the loan portfolio by origination year summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful for loans subject to the Company’s internal risk rating system and by performing status for all other loans as of December 31, 2023.
                           Revolving Loans     
   December 31, 2023   Amortized   Converted     
   Term Loans Amortized Cost Basis by Origination Fiscal Year   Cost Basis   to Term   Total 
   2024   2023   2022   2021   2020   Prior             
   (In thousands) 
One-to-four family residential                                             
Performing  $7,180   $43,224   $33,060   $27,899   $31,288   $91,353   $
   $
   $234,004 
Non-performing   
    
    
    
    
    152    
    
    152 
Total  $7,180   $43,224   $33,060   $27,899   $31,288   $91,505   $
   $
   $234,156 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Commercial real estate                                             
Pass  $18,235   $82,558   $68,224   $66,529   $30,007   $131,540   $6,373   $1,540   $405,006 
Special Mention   
    
    
    
    
    116    
    
    116 
Substandard   
    
    2,224    
    
    
    
    
    2,224 
Doubtful   
    
    
    
    
    
    
    
    
 
Total  $18,235   $82,558   $70,448   $66,529   $30,007   $131,656   $6,373   $1,540   $407,346 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Construction and land                                             
Pass  $10,368   $12,297   $2,351   $
   $1,761   $4,665   $725   $
   $32,167 
Special Mention   
    
    
    
    
    
    
    
    
 
Substandard   
    
    
    
    
    2,474    
    
    2,474 
Doubtful   
    
    
    
    
    
    
    
    
 
Total  $10,368   $12,297   $2,351   $
   $1,761   $7,139   $725   $
   $34,641 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Home equity loans and lines of credit                                             
Performing  $724   $1,678   $1,657   $342   $277   $1,438   $17,953   $
   $24,069 
Non-performing   
    
    
    
    
    
    
    
    
 
Total  $724   $1,678   $1,657   $342   $277   $1,438   $17,953   $
   $24,069 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Commercial business                                             
Pass  $1,030   $542   $2,685   $2,047   $946   $3,390   $16,403   $
   $27,043 
Special Mention   
    
    
    
    
    
    
    
    
 
Substandard   
    
    
    
    
    
    
    
    
 
Doubtful   
    
    
    
    
    
    
    
    
 
Total  $1,030   $542   $2,685   $2,047   $946   $3,390   $16,403   $
   $27,043 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
                                              
Other                                             
Performing  $
   $
   $65   $1   $13   $1,793   $367   $
   $2,239 
Non-performing   
    
    
    
    
    
    
    
    
 
Total  $
   $
   $65   $1   $13   $1,793   $367   $
   $2,239 
Current period gross charge-offs   
    
    
    
    
    
    
    
    
 
Schedule of Bank’s Internal Risk Rating System Information presented in the table above is not required for periods prior to the adoption of ASU 2016-13. The following table presents more comparable information of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the Bank’s internal risk rating system as of September 30, 2023.
       Special             
   Pass   Mention   Substandard   Doubtful   Total 
   (In thousands) 
September 30, 2023                         
One-to-four family residential  $236,876   $
   $807   $
   $237,683 
Commercial real estate   386,794    116    2,224    
    389,134 
Construction   19,379    
    2,474    
    21,853 
Home equity lines of credit   16,983    
    
    
    16,983 
Commercial business   30,194    
    
    
    30,194 
Other   2,359    
    
    
    2,359 
Total  $692,585   $116   $5,505   $
   $698,206 
Schedule of the Loan Portfolio by Analyzing the Age The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans for the periods presented:
       30-59   60-89         
       Days   Days   90 Days +   Total 
   Current   Past Due   Past Due   Past Due   Loans 
   (In thousands) 
December 31, 2023                         
One-to-four family residential  $232,710   $1,056   $238   $152   $234,156 
Commercial real estate   404,315    690    116    2,225    407,346 
Construction   32,167    
    
    2,474    34,641 
Home equity lines of credit   24,069    
    
    
    24,069 
Commercial business   26,404    639    
    
    27,043 
Other   2,239    
    
    
    2,239 
Total  $721,904   $2,385   $354   $4,851   $729,494 
       30-59   60-89         
       Days   Days   90 Days +   Total 
   Current   Past Due   Past Due   Past Due   Loans 
   (In thousands) 
September 30, 2023                         
One-to four-family residential  $236,729   $
   $568   $386   $237,683 
Commercial real estate   386,794    
    116    2,224    389,134 
Construction   19,379    
    
    2,474    21,853 
Home equity lines of credit   16,983    
    
    
    16,983 
Commercial business   30,047    147    
    
    30,194 
Other   2,359    
    
    
    2,359 
Total  $692,291   $147   $684   $5,084   $698,206 
Schedule of Non-Accrual Loans Related Allowance for Credit Loss by Loan The following tables present our non-accrual loans and the related allowance for credit loss by loan type as of December 31, 2023 and the non-accrual loans and specific reserves by loan type as of September 30, 2023.
   Non-   Allowance for 
   Accrual   Credit Loss 
   (In  thousands) 
December 31, 2023          
One-to-four family residential  $152   $
 
Commercial real estate   2,225    
 
Construction and land   2,474    
 
Home loans and lines of credit   
    
 
Commercial business   
    
 
Total  $4,851   $
 

 

   Non-   Specific 
   Accrual   Reserve 
   (In  thousands) 
September 30, 2023          
One-to four-family residential  $386   $
 
Commercial real estate   2,224    
 
Construction and land   2,474    
 
Home equity lines of credit   
    
 
Commercial business   
    
 
Other   
    
 
Total  $5,084   $
 
Schedule of Non-Performing,Collateral Dependent Loans The following table identifies our non-performing, collateral dependent loans by collateral type as of December 31, 2023:
   December 31, 
   2023 
   (In thousands) 
One- to four-family residential  $152 
Commercial real estate   2,225 
Land   2,474 
Total  $4,851 
Schedule of Impaired Loans The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of September 30, 2023:
           Impaired         
           Loans with         
   Impaired Loans with   No Specific         
   Specific Allowance   Allowance   Total Impaired Loans 
                   Unpaid 
   Recorded   Related   Recorded   Recorded   Principal 
   Investment   Allowance   Investment   Investment   Balance 
September 30, 2023  (In thousands) 
                     
One-to four-family residential  $
   $
   $2,031   $2,031   $2,031 
Commercial real estate   
    
    2,969    2,969    2,969 
Construction   
    
    2,474    2,474    2,539 
Commercial business   
    
    147    147    147 
Total impaired loans  $
   $
   $7,621   $7,621   $7,686 
Schedule of Interest Income Recognized on Impaired Loan The following table presents the average recorded investment in impaired loans and the interest income recognized on impaired loans for the three months ended December 31, 2022.
   Three Months Ended 
   December 31, 2022 
   (In thousands) 
     
One-to-four family residential  $1,447 
Commercial real estate   1,269 
Construction   2,835 
Commercial business   203 
Average investment in impaired loans  $5,754 
      
Interest income recognized on     
an accrual basis on impaired loans     
One-to-four family residential  $20 
Commercial real estate   13 
Commercial business   2 
Total  $35 
Schedule of Allowance for Loan Losses by Loan Category The following table presents, by loan category, the changes in the allowance for credit losses for the three months ended December 31, 2023 and the allowance for loan losses for the three months ended December 31, 2022.
   One-to-Four           Home Equity                 
   Family   Commercial       Lines of   Commercial             
   Residential   Real Estate   Construction   Credit   Business   Other   Unallocated   Total 
   (In  thousands) 
                                 
Balance- September 30, 2023  $1,259   $5,277   $472   $207   $939   $2   $174   $8,330 
Effect of adopting ASU 2016-13   7    (589)   (55)   (87)   (133)   (1)   (174)   (1,032)
Charge-offs   
    
    
    
    
    
    
    
 
Recoveries   
    
    
    
    
    
    
    
 
Provision (credit)   (75)   161    301    (40)   39    (1)   
    385 
Balance- December 31, 2023  $1,191   $4,849   $718   $80   $845   $
   $
   $7,683 
                                         
Balance- September 30, 2022  $1,223   $4,612   $461   $263   $1,484   $1   $389   $8,433 
Charge-offs   
    
    
    
    
    
    
    
 
Recoveries   
    
    
    
    
    
    
    
 
Provision (credit)   12    518    65    (7)   (109)   
    (162)   317 
Balance- December 31, 2022  $1,235   $5,130   $526   $256   $1,375   $1   $227   $8,750 
   One-to-Four           Home Equity                 
   Family   Commercial       Lines of   Commercial             
   Residential   Real Estate   Construction   Credit   Business   Other   Unallocated   Total 
   (In  thousands) 
Allowance for Loan Losses:                                        
Balance - September 30, 2023  $1,259   $5,277   $472   $207   $939   $2   $174   $8,330 
Individually evaluated                                        
for impairment   
    
    
    
    
    
    
    
 
Collectively evaluated                                        
for impairment   1,259    5,277    472    207    939    2    174    8,330 
                                         
Loans receivable:                                        
Balance - September 30, 2023  $237,683   $389,134   $21,853   $16,983   $30,194   $2,359   $
   $698,206 
Individually evaluated                                        
for impairment   2,031    2,969    2,474    
    147    
    
    7,621 
Collectively evaluated                                        
for impairment   235,652    386,165    19,379    16,983    30,047    2,359    
    690,585 
Schedule of Troubled Debt Restructuring During the three months ended December 31, 2022, there was one loan modified that was identified as a troubled debt restructuring (“TDR”) and there were no TDRs that subsequently defaulted within twelve months of modification.
   Three Months Ended December 31, 2022 
   Number of   Investment Before   Investment After 
   Loans   TDR Modification   TDR Modification 
   (Dollars in thousands) 
One-to four-family residential   1   $97   $107 
                
Total   1   $97   $107 
v3.24.0.1
DEPOSITS (Tables)
3 Months Ended
Dec. 31, 2023
Deposits [Abstract]  
Schedule of Deposits by Type of Account A summary of deposits by type of account are summarized as follows:
   December 31,   September 30, 
   2023   2023 
   (In thousands) 
         
Demand accounts  $164,453   $188,550 
Savings accounts   60,008    62,168 
NOW accounts   119,738    115,182 
Money market accounts   306,886    284,885 
Certificates of deposit   100,547    92,725 
Retirement certificates   11,916    11,943 
Total deposits  $763,548   $755,453 
v3.24.0.1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables)
3 Months Ended
Dec. 31, 2023
Financial Instruments with Off-Balance-Sheet Risk [Abstract]  
Schedule of Information Regarding Derivatives The following table presents summary information regarding these derivatives as of December 31, 2023 and September 30, 2023.
   Notional
Amount
   Average
Maturiy
(Years)
   Weighted
Average
Fixed Rate
   Weighted Average
Variable Rate
  Fair Value 
   (Dollars in thousands) 
December 31, 2023                   
Classified in Other Assets:                       
Customer interest rate swaps  $35,743    3.9    4.96%    1 Mo. BSBY + 2.44  $1,961 
Total  $35,743    3.9    4.96%      $1,961 
                        
Classified in Other Liabilities:                       
3rd Party interest rate swaps  $35,743    3.9    4.96%    1 Mo. BSBY + 2.44  $1,961 
Total  $35,743    3.9    4.96%      $1,961 
                        
September 30, 2023                       
Classified in Other Assets:                       
Customer interest rate swaps  $36,020    4.2    4.96%    1 Mo. BSBY + 2.44  $2,579 
Total  $36,020    4.2    4.96%      $2,579 
                        
Classified in Other Liabilities:                       
3rd Party interest rate swaps  $36,020    4.2    4.96%    1 Mo. BSBY + 2.44  $2,579 
Total  $36,020    4.2    4.96%      $2,579 
Schedule of Financial Instruments with Off-Balance-Sheet Risk Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.
   December 31,   September 30, 
   2023   2023 
   (In thousands) 
         
Financial instruments whose contract amounts represent credit risk          
Letters of credit  $1,098   $1,073 
Unused lines of credit   95,333    89,933 
Fixed rate loan commitments   15,610    3,578 
Variable rate loan commitments   4,969    26,472 
Totals  $117,010   $121,056 
v3.24.0.1
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($)
Dec. 31, 2023
Sep. 30, 2023
RECENT ACCOUNTING PRONOUNCEMENTS (Details) [Line Items]    
Cumulative effect increase to retained earnings $ 492,000  
Net of tax 346,000  
Accrued interest receivable 4,300,000  
Held-to-maturity debt securities 84,333,000 $ 85,835,000
Maximum [Member]    
RECENT ACCOUNTING PRONOUNCEMENTS (Details) [Line Items]    
Increase related to loans 1,032,000  
Minimum [Member]    
RECENT ACCOUNTING PRONOUNCEMENTS (Details) [Line Items]    
Net of tax 725,000  
Unfunded Commitments [Member] | Maximum [Member]    
RECENT ACCOUNTING PRONOUNCEMENTS (Details) [Line Items]    
Increase related to loans 540,000  
Unfunded Commitments [Member] | Minimum [Member]    
RECENT ACCOUNTING PRONOUNCEMENTS (Details) [Line Items]    
Net of tax 379,000  
ACL [Member]    
RECENT ACCOUNTING PRONOUNCEMENTS (Details) [Line Items]    
Held-to-maturity debt securities 215,000  
Available-for-sale debt securities $ 26,000  
v3.24.0.1
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - Schedule of Change from the Incurred Loss Model to the Current Expected Credit Loss Model
$ in Thousands
Oct. 01, 2023
USD ($)
Pre-adoption [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses $ 8,330
Pre-adoption [Member] | ACL on debt securities held-to-maturity [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses
Pre-adoption [Member] | One-to-four family residential [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 1,259
Pre-adoption [Member] | Commercial Real Estate [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 5,277
Pre-adoption [Member] | Construction [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 472
Pre-adoption [Member] | Home equity lines of credit [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 207
Pre-adoption [Member] | Commercial Business [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 939
Pre-adoption [Member] | Other [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 176
Pre-adoption [Member] | ACL on unfunded commitments [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses
Adoption Impact [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses (492)
Adoption Impact [Member] | ACL on debt securities held-to-maturity [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses
Adoption Impact [Member] | One-to-four family residential [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 7
Adoption Impact [Member] | Commercial Real Estate [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses (589)
Adoption Impact [Member] | Construction [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses (55)
Adoption Impact [Member] | Home equity lines of credit [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses (87)
Adoption Impact [Member] | Commercial Business [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses (133)
Adoption Impact [Member] | Other [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses (175)
Adoption Impact [Member] | ACL on unfunded commitments [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 540
As Reported [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 7,838
As Reported [Member] | ACL on debt securities held-to-maturity [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses
As Reported [Member] | One-to-four family residential [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 1,266
As Reported [Member] | Commercial Real Estate [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 4,688
As Reported [Member] | Construction [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 417
As Reported [Member] | Home equity lines of credit [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 120
As Reported [Member] | Commercial Business [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 806
As Reported [Member] | Other [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses 1
As Reported [Member] | ACL on unfunded commitments [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Allowance for credit losses $ 540
v3.24.0.1
EARNINGS PER SHARE (Details) - $ / shares
3 Months Ended 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Sep. 30, 2023
EARNINGS PER SHARE (Details) [Line Items]      
Stock options to purchase 293,200   293,200
Weighted average strike price $ 12.58 $ 12.58 $ 12.58
Restricted shares 124,320   124,320
Weighted average price $ 12.63 $ 12.63 $ 12.63
Options to purchase common stock 293,200 293,200  
Restricted Stock [Member]      
EARNINGS PER SHARE (Details) [Line Items]      
Restricted shares 124,320    
Options to purchase common stock 124,320 156,400  
v3.24.0.1
EARNINGS PER SHARE (Details) - Schedule of Earnings Per Share - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Schedule Of Earnings Per Share Abstract    
Income applicable to common shares (in Dollars) $ 1,652 $ 1,810
Weighted average common shares outstanding- basic 6,387,010 6,456,525
Potential diliutive common stock equivalents 2,921
Weighted average common shares outstanding- diluted 6,387,010 6,459,446
Earnings per share - basic (in Dollars per share) $ 0.26 $ 0.28
Earnings per share - diluted (in Dollars per share) $ 0.26 $ 0.28
v3.24.0.1
STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 08, 2022
Aug. 25, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2022
Sep. 30, 2021
Sep. 30, 2023
STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM (Details) [Line Items]              
Equity compensation shares   547,400          
Shares of restricted stock     293,200   293,200    
Stock option compensation expense (in Dollars)     $ 63,000 $ 69,000      
Stock award compensation expense (in Dollars)     98,000 111,000      
Unvested stock options and stock awards (in Dollars)     $ 2,400,000        
Percentage of repurchase additional 5.00%            
Average price (in Dollars per share) $ 11.51            
Stock repurchase program shares 120,062   217,084        
Authorized shares     337,146        
Treasury stock shares     442,873       423,641
ESOP purchase of shares           312,800  
Common stock (in Dollars)           $ 3,400,000  
Average cost per share (in Dollars per share)           $ 10.77  
Variable interest rate           3.25%  
Principal and interest payable term           30 years  
Shares allocated to participants             170,335
Shares unallocated to participants             290,313
Aggregate fair value (in Dollars)             $ 3,300,000
Contribution expense (in Dollars)     $ 50,000 $ 41,000      
Common Stock [Member]              
STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM (Details) [Line Items]              
Average price (in Dollars per share) $ 337,146            
Restricted Stock [Member]              
STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM (Details) [Line Items]              
Shares of restricted stock     124,320   156,400    
v3.24.0.1
STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM (Details) - Schedule of Stock Option Activity
3 Months Ended
Dec. 31, 2023
USD ($)
$ / shares
shares
Schedule of Stock Option Activity [Abstract]  
Number of Stock Options, beginning balance | shares 293,200
Weighted Average Exercise Price, beginning balance | $ / shares $ 12.58
Weighted Average Remaining Contractual Life, beginning balance 8 years 11 months 23 days
Aggregate Intrinsic Value, beginning balance | $
Number of Stock Options, Granted | shares
Weighted Average Exercise Price, Granted | $ / shares
Weighted Average Remaining Contractual Life, Granted
Aggregate Intrinsic Value, Granted | $
Number of Stock Options, Exercised | shares
Weighted Average Exercise Price, Exercised | $ / shares
Aggregate Intrinsic Value, Exercised | $
Weighted Average Remaining Contractual Life, Exercised
Number of Stock Options, Forfeited | shares
Weighted Average Exercise Price, Forfeited | $ / shares
Aggregate Intrinsic Value, Forfeited | $
Weighted Average Remaining Contractual Life, Forfeited
Number of Stock Options, Expired | shares
Weighted Average Exercise Price, Expired | $ / shares
Aggregate Intrinsic Value, Expired | $
Weighted Average Remaining Contractual Life, Expired
Number of Stock Options, ending Balance | shares 293,200
Weighted Average Exercise Price, ending Balance | $ / shares $ 12.58
Weighted Average Remaining Contractual Life, ending Balance 8 years 8 months 23 days
Aggregate Intrinsic Value, ending Balance | $
Aggregate Intrinsic Value, Exercisable | $
Number of Stock Options, Exercisable | shares 58,640
Weighted Average Exercise Price, Exercisable | $ / shares $ 12.58
Weighted Average Remaining Contractual Life, Exercisable 8 years 8 months 23 days
v3.24.0.1
STOCK-BASED COMPENSATION AND STOCK REPURCHASE PROGRAM (Details) - Schedule of Non-vested Restricted Shares
3 Months Ended
Dec. 31, 2023
$ / shares
shares
Schedule of Non Vested Restricted Shares [Abstract]  
Number of stock awards beginning balance | shares 124,320
Weighted average grant date fair value beginning balance | $ / shares $ 12.63
Number of stock awards granted | shares
Weighted average grant date fair value granted | $ / shares
Number of stock awards vested | shares
Weighted average grant date fair value vested | $ / shares
Number of stock awards forfeited | shares
Weighted average grant date fair value forfeited | $ / shares
Number of stock awards ending balance | shares 124,320
Weighted average grant date fair value ending balance | $ / shares $ 12.63
v3.24.0.1
OTHER COMPREHENSIVE INCOME (LOSS) (Details)
3 Months Ended
Dec. 31, 2023
Other Comprehensive Income (Loss) [Abstract]  
Percentage of income tax rate 25.00%
v3.24.0.1
OTHER COMPREHENSIVE INCOME (LOSS) (Details) - Schedule of Components of Other Comprehensive Income (Loss) and the Related Income Tax Effects - USD ($)
$ in Thousands
3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Unrealized holding gain (loss) arising during period on:    
Available-for-sale investments, Before Tax Amount $ 584 $ 206
Available-for-sale investments, Tax (Benefit) Expense (144) (50)
Available-for-sale investments, Net of Tax Amount 440 156
Other comprehensive income (loss), net Before Tax Amount 584 206
Other comprehensive income (loss), net Tax (Benefit) Expense (144) (50)
Other comprehensive income (loss), net of Tax Amount $ 440 $ 156
v3.24.0.1
FAIR VALUE DISCLOSURES (Details) - Schedule of Assets Measured At Fair Value on a Recurring Basis - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Obligations of U.S. government agencies:    
Total securities available for sale $ 12,273 $ 10,125
Derivative assets 1,961 2,579
Total assets 14,234 12,704
Liabilities:    
Derivative liabilities 1,961 2,579
Total Liabilities 1,961 2,579
Obligations of U.S. government enterprises Mortgage-backed securities [Member]    
Obligations of U.S. government agencies:    
Mortgage-backed securities - residential 95 92
Obligations of U.S. government-sponsored enterprises Mortgage-backed securities-residential [Member]    
Obligations of U.S. government agencies:    
Mortgage-backed securities - residential 12,178 10,033
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]    
Obligations of U.S. government agencies:    
Total securities available for sale
Derivative assets
Total assets
Liabilities:    
Derivative liabilities
Total Liabilities
Fair Value, Inputs, Level 1 [Member] | Obligations of U.S. government enterprises Mortgage-backed securities [Member] | Fair Value, Recurring [Member]    
Obligations of U.S. government agencies:    
Mortgage-backed securities - residential
Fair Value, Inputs, Level 1 [Member] | Obligations of U.S. government-sponsored enterprises Mortgage-backed securities-residential [Member] | Fair Value, Recurring [Member]    
Obligations of U.S. government agencies:    
Mortgage-backed securities - residential
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]    
Obligations of U.S. government agencies:    
Total securities available for sale 12,273 10,125
Derivative assets 1,961 2,579
Total assets 14,234 12,704
Liabilities:    
Derivative liabilities 1,961 2,579
Total Liabilities 1,961 2,579
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. government enterprises Mortgage-backed securities [Member] | Fair Value, Recurring [Member]    
Obligations of U.S. government agencies:    
Mortgage-backed securities - residential 95 92
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. government-sponsored enterprises Mortgage-backed securities-residential [Member] | Fair Value, Recurring [Member]    
Obligations of U.S. government agencies:    
Mortgage-backed securities - residential 12,178 10,033
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]    
Obligations of U.S. government agencies:    
Total securities available for sale
Derivative assets
Total assets
Liabilities:    
Derivative liabilities
Total Liabilities
Fair Value, Inputs, Level 3 [Member] | Obligations of U.S. government enterprises Mortgage-backed securities [Member] | Fair Value, Recurring [Member]    
Obligations of U.S. government agencies:    
Mortgage-backed securities - residential
Fair Value, Inputs, Level 3 [Member] | Obligations of U.S. government-sponsored enterprises Mortgage-backed securities-residential [Member] | Fair Value, Recurring [Member]    
Obligations of U.S. government agencies:    
Mortgage-backed securities - residential
v3.24.0.1
FAIR VALUE DISCLOSURES (Details) - Schedule of Assets Measured At Fair Value on a Non-Recurring Basis - Fair Value, Nonrecurring [Member] - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
FAIR VALUE DISCLOSURES (Details) - Schedule of Assets Measured At Fair Value on a Non-Recurring Basis [Line Items]    
Assets measured at fair value $ 777 $ 777
Collateral dependent loans [Member]    
FAIR VALUE DISCLOSURES (Details) - Schedule of Assets Measured At Fair Value on a Non-Recurring Basis [Line Items]    
Assets measured at fair value 777 777
Fair Value, Inputs, Level 1 [Member]    
FAIR VALUE DISCLOSURES (Details) - Schedule of Assets Measured At Fair Value on a Non-Recurring Basis [Line Items]    
Assets measured at fair value
Fair Value, Inputs, Level 1 [Member] | Collateral dependent loans [Member]    
FAIR VALUE DISCLOSURES (Details) - Schedule of Assets Measured At Fair Value on a Non-Recurring Basis [Line Items]    
Assets measured at fair value
Fair Value, Inputs, Level 2 [Member]    
FAIR VALUE DISCLOSURES (Details) - Schedule of Assets Measured At Fair Value on a Non-Recurring Basis [Line Items]    
Assets measured at fair value
Fair Value, Inputs, Level 2 [Member] | Collateral dependent loans [Member]    
FAIR VALUE DISCLOSURES (Details) - Schedule of Assets Measured At Fair Value on a Non-Recurring Basis [Line Items]    
Assets measured at fair value
Fair Value, Inputs, Level 3 [Member]    
FAIR VALUE DISCLOSURES (Details) - Schedule of Assets Measured At Fair Value on a Non-Recurring Basis [Line Items]    
Assets measured at fair value 777 777
Fair Value, Inputs, Level 3 [Member] | Collateral dependent loans [Member]    
FAIR VALUE DISCLOSURES (Details) - Schedule of Assets Measured At Fair Value on a Non-Recurring Basis [Line Items]    
Assets measured at fair value $ 777 $ 777
v3.24.0.1
FAIR VALUE DISCLOSURES (Details) - Schedule of Quantitative Information about Assets Measured At Fair Value on a Nonrecurring Basis for Which Level 3 Inputs Were Used To Determine Fair Value - Impaired Loans [Member] - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2023
Sep. 30, 2023
FAIR VALUE DISCLOSURES (Details) - Schedule of Quantitative Information about Assets Measured At Fair Value on a Nonrecurring Basis for Which Level 3 Inputs Were Used To Determine Fair Value [Line Items]    
Fair Value Estimate $ 777 $ 777
Valuation Techniques [1] Appraisal of collateral (1) Appraisal of collateral (1)
Unobservable Input [2] Appraisal adjustments (2) Appraisal adjustments (2)
Range (Weighted Average) -50% to -8.0% (-12.0%) -50% to -8.0% (-19.4%)
[1] Fair value is generally determined through independent appraisals for the underlying collateral, which generally include 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.
v3.24.0.1
FAIR VALUE DISCLOSURES (Details) - Schedule of the Carrying Amount, Fair Value, and Placement in the Fair Value Hierarchy of Financial Instruments Carried At Cost or Amortized Cost - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Fair Value, Inputs, Level 1 [Member]    
Financial instruments - assets    
Investment securities held-to-maturity
Loans
Financial instruments - liabilities    
Certificates of deposit
Borrowings
Fair Value, Inputs, Level 2 [Member]    
Financial instruments - assets    
Investment securities held-to-maturity 75,508 73,728
Loans
Financial instruments - liabilities    
Certificates of deposit 110,530 101,216
Borrowings 27,930 28,177
Fair Value, Inputs, Level 3 [Member]    
Financial instruments - assets    
Investment securities held-to-maturity
Loans 703,158 664,331
Financial instruments - liabilities    
Certificates of deposit
Borrowings
Reported Value Measurement [Member]    
Financial instruments - assets    
Investment securities held-to-maturity 84,333 85,835
Loans 728,560 689,070
Financial instruments - liabilities    
Certificates of deposit 112,463 104,668
Borrowings 28,796 29,515
Estimate of Fair Value Measurement [Member]    
Financial instruments - assets    
Investment securities held-to-maturity 75,508 73,728
Loans 703,158 664,331
Financial instruments - liabilities    
Certificates of deposit 110,530 101,216
Borrowings $ 27,930 $ 28,177
v3.24.0.1
INVESTMENT SECURITIES (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Investment Securities [Abstract]  
Investment Securities fair value $ 12.2
v3.24.0.1
INVESTMENT SECURITIES (Details) - Schedule of Amortized Cost and Fair Values of Securities Held to Maturity - Securities [Member] - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Available-For-Sale, Amortized Cost $ 13,654 $ 12,090
Securities Available-For-Sale, Gross Unrealized Gains 39
Securities Available-For-Sale, Gross Unrealized Losses (1,420) (1,965)
Securities Available-For-Sale, Fair Value 12,273 10,125
Securities Held-To-Maturity, Amortized Cost 84,333 85,835
Securities Held-To-Maturity, Gross Unrealized Gains 11
Securities Held-To-Maturity, Gross Unrealized Losses (8,836) (12,107)
Securities Held-To-Maturity, Fair Value 75,508 73,728
Available-for-Sale Securities [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Total investment securities, Amortized Cost 97,987 97,925
Total investment securities, Gross Unrealized Gains 50
Total investment securities, Gross Unrealized Losses (10,256) (14,072)
Total investment securities, Fair Value 87,781 83,853
Mortgage backed securities - residential [Member] | Obligations of U.S. government agencies [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Available-For-Sale, Amortized Cost 103 106
Securities Available-For-Sale, Gross Unrealized Gains
Securities Available-For-Sale, Gross Unrealized Losses (8) (14)
Securities Available-For-Sale, Fair Value 95 92
Securities Held-To-Maturity, Amortized Cost 4,986 5,070
Securities Held-To-Maturity, Gross Unrealized Gains
Securities Held-To-Maturity, Gross Unrealized Losses (677) (850)
Securities Held-To-Maturity, Fair Value 4,309 4,220
Mortgage backed securities - residential [Member] | Obligations of U.S. government-sponsored enterprises [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Available-For-Sale, Amortized Cost 13,551  
Securities Available-For-Sale, Gross Unrealized Gains 39  
Securities Available-For-Sale, Gross Unrealized Losses (1,412)  
Securities Available-For-Sale, Fair Value 12,178  
Securities Held-To-Maturity, Amortized Cost 47,199 48,086
Securities Held-To-Maturity, Gross Unrealized Gains
Securities Held-To-Maturity, Gross Unrealized Losses (6,229) (8,480)
Securities Held-To-Maturity, Fair Value 40,970 39,606
Mortgage backed securities - residential [Member] | Obligations of U.S. government-sponsored enterprises [Member] | Available-for-Sale Securities [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Available-For-Sale, Amortized Cost   11,984
Securities Available-For-Sale, Gross Unrealized Gains  
Securities Available-For-Sale, Gross Unrealized Losses   (1,951)
Securities Available-For-Sale, Fair Value   10,033
Mortgage-backed securities - commercial [Member] | Obligations of U.S. government agencies [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Amortized Cost 2,484 2,509
Securities Held-To-Maturity, Gross Unrealized Gains
Securities Held-To-Maturity, Gross Unrealized Losses (22) (16)
Securities Held-To-Maturity, Fair Value 2,462 2,493
Obligations of U.S. government-sponsored enterprises [Member] | Securities [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Amortized Cost 22,999 23,497
Securities Held-To-Maturity, Gross Unrealized Gains 6
Securities Held-To-Maturity, Gross Unrealized Losses (1,378) (1,947)
Securities Held-To-Maturity, Fair Value 21,627 21,550
Private label mortgage-backed securities-residential [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Amortized Cost 203 207
Securities Held-To-Maturity, Gross Unrealized Gains
Securities Held-To-Maturity, Gross Unrealized Losses (10) (12)
Securities Held-To-Maturity, Fair Value 193 195
Obligations of state and political subdivisions [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Amortized Cost 3,462 3,466
Securities Held-To-Maturity, Gross Unrealized Gains 5
Securities Held-To-Maturity, Gross Unrealized Losses (324) (605)
Securities Held-To-Maturity, Fair Value 3,143 2,861
Corporate securities [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Amortized Cost 3,000 3,000
Securities Held-To-Maturity, Gross Unrealized Gains
Securities Held-To-Maturity, Gross Unrealized Losses (196) (197)
Securities Held-To-Maturity, Fair Value 2,804 $ 2,803
Standard & Poor's, AAA/AA/A Rating [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating 81,130  
Standard & Poor's, AAA/AA/A Rating [Member] | Mortgage backed securities - residential [Member] | Obligations of U.S. government agencies [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating 4,986  
Standard & Poor's, AAA/AA/A Rating [Member] | Mortgage backed securities - residential [Member] | Obligations of U.S. government-sponsored enterprises [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating 47,199  
Standard & Poor's, AAA/AA/A Rating [Member] | Mortgage-backed securities - commercial [Member] | Obligations of U.S. government agencies [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating 2,484  
Standard & Poor's, AAA/AA/A Rating [Member] | Obligations of U.S. government-sponsored enterprises [Member] | Securities [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating 22,999  
Standard & Poor's, AAA/AA/A Rating [Member] | Private label mortgage-backed securities-residential [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Standard & Poor's, AAA/AA/A Rating [Member] | Obligations of state and political subdivisions [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating 3,462  
Standard & Poor's, AAA/AA/A Rating [Member] | Corporate securities [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Standard & Poor's, BBB/BB/B Rating [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating 3,000  
Standard & Poor's, BBB/BB/B Rating [Member] | Mortgage backed securities - residential [Member] | Obligations of U.S. government agencies [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Standard & Poor's, BBB/BB/B Rating [Member] | Mortgage backed securities - residential [Member] | Obligations of U.S. government-sponsored enterprises [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Standard & Poor's, BBB/BB/B Rating [Member] | Mortgage-backed securities - commercial [Member] | Obligations of U.S. government agencies [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Standard & Poor's, BBB/BB/B Rating [Member] | Obligations of U.S. government-sponsored enterprises [Member] | Securities [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Standard & Poor's, BBB/BB/B Rating [Member] | Private label mortgage-backed securities-residential [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Standard & Poor's, BBB/BB/B Rating [Member] | Obligations of state and political subdivisions [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Standard & Poor's, BBB/BB/B Rating [Member] | Corporate securities [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating 3,000  
Non-rated [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating 203  
Non-rated [Member] | Mortgage backed securities - residential [Member] | Obligations of U.S. government agencies [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Non-rated [Member] | Mortgage backed securities - residential [Member] | Obligations of U.S. government-sponsored enterprises [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Non-rated [Member] | Mortgage-backed securities - commercial [Member] | Obligations of U.S. government agencies [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Non-rated [Member] | Obligations of U.S. government-sponsored enterprises [Member] | Securities [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Non-rated [Member] | Private label mortgage-backed securities-residential [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating 203  
Non-rated [Member] | Obligations of state and political subdivisions [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
Non-rated [Member] | Corporate securities [Member]    
Schedule of Amortized Cost and Fair Values of Securities [Line Items]    
Securities Held-To-Maturity, Credit Rating  
v3.24.0.1
INVESTMENT SECURITIES (Details) - Schedule of Maturities Debt Securities and Mortgage Backed Securities Held to Maturity - Mortgage-backed securities held-to-maturity [Member]
$ in Thousands
Dec. 31, 2023
USD ($)
Amortized Cost [Member]  
Schedule of Maturities Debt Securities and Mortgage Backed Securities Held to Maturity [Line Items]  
Due within 1 year $ 4,000
Due after 1 but within 5 years 20,526
Due after 5 but within 10 years 4,935
Due after 10 years
Total debt securities 29,461
Fair Value [Member]  
Schedule of Maturities Debt Securities and Mortgage Backed Securities Held to Maturity [Line Items]  
Due within 1 year 3,966
Due after 1 but within 5 years 19,315
Due after 5 but within 10 years 4,293
Due after 10 years
Total debt securities 27,574
Mortgage backed securities [Member] | Amortized Cost [Member]  
Mortgage backed securities:  
Mortgage backed securities 97,987
Mortgage backed securities [Member] | Fair Value [Member]  
Mortgage backed securities:  
Mortgage backed securities 87,781
Residential [Member] | Mortgage backed securities [Member] | Amortized Cost [Member]  
Mortgage backed securities:  
Mortgage backed securities 66,042
Residential [Member] | Mortgage backed securities [Member] | Fair Value [Member]  
Mortgage backed securities:  
Mortgage backed securities 57,745
Commercial [Member] | Mortgage backed securities [Member] | Amortized Cost [Member]  
Mortgage backed securities:  
Mortgage backed securities 2,484
Commercial [Member] | Mortgage backed securities [Member] | Fair Value [Member]  
Mortgage backed securities:  
Mortgage backed securities $ 2,462
v3.24.0.1
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value $ 9,903 $ 83,637
Unrealized losses (1,420) (14,072)
Mortgage-backed securities - residential [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value 95 4,312
Unrealized losses (8) (864)
Mortgage-backed securities - residential [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value 9,808  
Unrealized losses (1,412)  
Mortgage-backed securities - commercial [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   2,493
Unrealized losses   (16)
Mortgage-backed securities - residential [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   49,423
Unrealized losses   (10,431)
Debt securities [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   21,550
Unrealized losses   (1,947)
Private label mortgage-backed securities residential [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   195
Unrealized losses   (12)
Obligations of state and political subdivisions [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   2,861
Unrealized losses   (605)
Corporate securities [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   2,803
Unrealized losses   (197)
Less Than 12 Months [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value 1,879 7,653
Unrealized losses (9) (106)
Less Than 12 Months [Member] | Mortgage-backed securities - residential [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value
Unrealized losses
Less Than 12 Months [Member] | Mortgage-backed securities - residential [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value 1,879  
Unrealized losses (9)  
Less Than 12 Months [Member] | Mortgage-backed securities - commercial [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   1,926
Unrealized losses   (14)
Less Than 12 Months [Member] | Mortgage-backed securities - residential [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   4,938
Unrealized losses   (49)
Less Than 12 Months [Member] | Debt securities [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value  
Unrealized losses  
Less Than 12 Months [Member] | Private label mortgage-backed securities residential [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value  
Unrealized losses  
Less Than 12 Months [Member] | Obligations of state and political subdivisions [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   789
Unrealized losses   (43)
Less Than 12 Months [Member] | Corporate securities [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value  
Unrealized losses  
12 Months Or Greater [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value 8,024 75,984
Unrealized losses (1,411) (13,966)
12 Months Or Greater [Member] | Mortgage-backed securities - residential [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value 95 4,312
Unrealized losses (8) (864)
12 Months Or Greater [Member] | Mortgage-backed securities - residential [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value 7,929  
Unrealized losses $ (1,403)  
12 Months Or Greater [Member] | Mortgage-backed securities - commercial [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   567
Unrealized losses   (2)
12 Months Or Greater [Member] | Mortgage-backed securities - residential [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   44,485
Unrealized losses   (10,382)
12 Months Or Greater [Member] | Debt securities [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   21,550
Unrealized losses   (1,947)
12 Months Or Greater [Member] | Private label mortgage-backed securities residential [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   195
Unrealized losses   (12)
12 Months Or Greater [Member] | Obligations of state and political subdivisions [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   2,072
Unrealized losses   (562)
12 Months Or Greater [Member] | Corporate securities [Member]    
CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) - Schedule of Fair Values Less than their Amortized Cost Contain Unrealized Losses [Line Items]    
Fair value   2,803
Unrealized losses   $ (197)
v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses (Details)
3 Months Ended
Dec. 31, 2023
Loans Receivable, Net [Abstract]  
Commercial relationships, description Generally, the external consultant reviews commercial relationships greater than $500,000 and/or criticized relationships greater than $250,000.
v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Loans Receivable - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Schedule of Loans Receivable [Line Items]    
Total loans receivable $ 729,494 $ 698,206
Net deferred loan costs (934) (806)
Total loans receivable, net 728,560 697,400
One-to four-family residential [Member]    
Schedule of Loans Receivable [Line Items]    
One-to-four family residential 234,156 237,683
Total loans receivable   237,683
Commercial real estate [Member]    
Schedule of Loans Receivable [Line Items]    
Commercial real estate 407,346 389,134
Total loans receivable   389,134
Construction [Member]    
Schedule of Loans Receivable [Line Items]    
Construction and land 34,641 21,853
Total loans receivable   21,853
Home equity lines of credit [Member]    
Schedule of Loans Receivable [Line Items]    
Home equity loans and lines of credit 24,069 16,983
Total loans receivable   16,983
Commercial business [Member]    
Schedule of Loans Receivable [Line Items]    
Commercial business 27,043 30,194
Total loans receivable   30,194
Other [Member]    
Schedule of Loans Receivable [Line Items]    
Other $ 2,239 2,359
Total loans receivable   $ 2,359
v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Loan Portfolio
$ in Thousands
3 Months Ended
Dec. 31, 2023
USD ($)
One-to-Four Family Residential [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024 $ 7,180
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023 43,224
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 33,060
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021 27,899
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020 31,288
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 91,505
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total 234,156
Commercial Real Estate [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024 18,235
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023 82,558
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 70,448
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021 66,529
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020 30,007
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 131,656
Revolving Loans, Amortized Cost Basis 6,373
Revolving Loans, Converted to Term 1,540
Revolving Loans, Total 407,346
Commercial Real Estate [Member] | Pass [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024 18,235
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023 82,558
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 68,224
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021 66,529
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020 30,007
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 131,540
Revolving Loans, Amortized Cost Basis 6,373
Revolving Loans, Converted to Term 1,540
Revolving Loans, Total 405,006
Commercial Real Estate [Member] | Special Mention [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 116
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total 116
Commercial Real Estate [Member] | Substandard [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 2,224
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total 2,224
Commercial Real Estate [Member] | Doubtful [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total
Construction And Land [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024 10,368
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023 12,297
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 2,351
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020 1,761
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 7,139
Revolving Loans, Amortized Cost Basis 725
Revolving Loans, Converted to Term
Revolving Loans, Total 34,641
Construction And Land [Member] | Pass [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024 10,368
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023 12,297
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 2,351
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020 1,761
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 4,665
Revolving Loans, Amortized Cost Basis 725
Revolving Loans, Converted to Term
Revolving Loans, Total 32,167
Construction And Land [Member] | Special Mention [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total
Construction And Land [Member] | Substandard [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 2,474
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total 2,474
Construction And Land [Member] | Doubtful [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total
Home Equity Loan [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024 724
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023 1,678
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 1,657
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021 342
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020 277
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 1,438
Revolving Loans, Amortized Cost Basis 17,953
Revolving Loans, Converted to Term
Revolving Loans, Total 24,069
Commercial Business [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024 1,030
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023 542
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 2,685
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021 2,047
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020 946
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 3,390
Revolving Loans, Amortized Cost Basis 16,403
Revolving Loans, Converted to Term
Revolving Loans, Total 27,043
Commercial Business [Member] | Pass [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024 1,030
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023 542
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 2,685
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021 2,047
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020 946
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 3,390
Revolving Loans, Amortized Cost Basis 16,403
Revolving Loans, Converted to Term
Revolving Loans, Total 27,043
Commercial Business [Member] | Special Mention [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total
Commercial Business [Member] | Substandard [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total
Commercial Business [Member] | Doubtful [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total
Other [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 65
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021 1
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020 13
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 1,793
Revolving Loans, Amortized Cost Basis 367
Revolving Loans, Converted to Term
Revolving Loans, Total 2,239
Performing Financial Instruments [Member] | One-to-Four Family Residential [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024 7,180
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023 43,224
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 33,060
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021 27,899
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020 31,288
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 91,353
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total 234,004
Performing Financial Instruments [Member] | Home Equity Loan [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024 724
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023 1,678
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 1,657
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021 342
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020 277
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 1,438
Revolving Loans, Amortized Cost Basis 17,953
Revolving Loans, Converted to Term
Revolving Loans, Total 24,069
Performing Financial Instruments [Member] | Other [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022 65
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021 1
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020 13
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 1,793
Revolving Loans, Amortized Cost Basis 367
Revolving Loans, Converted to Term
Revolving Loans, Total 2,239
Nonperforming Financial Instruments [Member] | One-to-Four Family Residential [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior 152
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total 152
Nonperforming Financial Instruments [Member] | Home Equity Loan [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total
Nonperforming Financial Instruments [Member] | Other [Member]  
One-to-four family residential  
Term Loans Amortized Cost Basis by Origination Fiscal Year 2024
Term Loans Amortized Cost Basis by Origination Fiscal Year 2023
Term Loans Amortized Cost Basis by Origination Fiscal Year 2022
Term Loans Amortized Cost Basis by Origination Fiscal Year 2021
Term Loans Amortized Cost Basis by Origination Fiscal Year 2020
Term Loans Amortized Cost Basis by Origination Fiscal Year Prior
Revolving Loans, Amortized Cost Basis
Revolving Loans, Converted to Term
Revolving Loans, Total
Revolving Credit Facility [Member] | One-to-Four Family Residential [Member]  
One-to-four family residential  
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Revolving Credit Facility [Member] | Commercial Real Estate [Member]  
One-to-four family residential  
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Revolving Credit Facility [Member] | Construction And Land [Member]  
One-to-four family residential  
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Revolving Credit Facility [Member] | Home Equity Loan [Member]  
One-to-four family residential  
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Revolving Credit Facility [Member] | Commercial Business [Member]  
One-to-four family residential  
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Revolving Credit Facility [Member] | Other [Member]  
One-to-four family residential  
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
Current period gross charge-offs
v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Bank’s Internal Risk Rating System - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross $ 729,494 $ 698,206
Pass [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   692,585
Special Mention [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   116
Substandard [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   5,505
Doubtful [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
One-to four-family residential [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   237,683
One-to four-family residential [Member] | Pass [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   236,876
One-to four-family residential [Member] | Special Mention [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
One-to four-family residential [Member] | Substandard [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   807
One-to four-family residential [Member] | Doubtful [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
Commercial real estate [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   389,134
Commercial real estate [Member] | Pass [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   386,794
Commercial real estate [Member] | Special Mention [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   116
Commercial real estate [Member] | Substandard [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   2,224
Commercial real estate [Member] | Doubtful [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
Construction [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   21,853
Construction [Member] | Pass [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   19,379
Construction [Member] | Special Mention [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
Construction [Member] | Substandard [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   2,474
Construction [Member] | Doubtful [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
Home equity lines of credit [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   16,983
Home equity lines of credit [Member] | Pass [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   16,983
Home equity lines of credit [Member] | Special Mention [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
Home equity lines of credit [Member] | Substandard [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
Home equity lines of credit [Member] | Doubtful [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
Commercial business [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   30,194
Commercial business [Member] | Pass [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   30,194
Commercial business [Member] | Special Mention [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
Commercial business [Member] | Substandard [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
Commercial business [Member] | Doubtful [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
Other [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   2,359
Other [Member] | Pass [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross   2,359
Other [Member] | Special Mention [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
Other [Member] | Substandard [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
Other [Member] | Doubtful [Member]    
Schedule of Bank’s Internal Risk Rating System [Line Items]    
Loans and Leases Receivable, Gross  
v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of the Loan Portfolio by Analyzing the Age - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Financing Receivable, Past Due [Line Items]    
Current $ 721,904 $ 692,291
Total Loans 729,494 698,206
30-59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due 2,385 147
60-89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due 354 684
90 Days + Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due 4,851 5,084
One-to-Four Family Residential [Member]    
Financing Receivable, Past Due [Line Items]    
Current 232,710 236,729
Total Loans 234,156 237,683
One-to-Four Family Residential [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due 1,056
One-to-Four Family Residential [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due 238 568
One-to-Four Family Residential [Member] | 90 Days + Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due 152 386
Commercial Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Current 404,315 386,794
Total Loans 407,346 389,134
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due 690
Commercial Real Estate [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due 116 116
Commercial Real Estate [Member] | 90 Days + Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due 2,225 2,224
Construction [Member]    
Financing Receivable, Past Due [Line Items]    
Current 32,167 19,379
Total Loans 34,641 21,853
Construction [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due
Construction [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due
Construction [Member] | 90 Days + Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due 2,474 2,474
Home equity lines of credit [Member]    
Financing Receivable, Past Due [Line Items]    
Current 24,069  
Total Loans 24,069  
Home equity lines of credit [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due  
Home equity lines of credit [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due  
Home equity lines of credit [Member] | 90 Days + Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due  
Commercial business [Member]    
Financing Receivable, Past Due [Line Items]    
Current 26,404 30,047
Total Loans 27,043 30,194
Commercial business [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due 639 147
Commercial business [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due
Commercial business [Member] | 90 Days + Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due
Other [Member]    
Financing Receivable, Past Due [Line Items]    
Current 2,239 2,359
Total Loans 2,239 2,359
Other [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due
Other [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due
Other [Member] | 90 Days + Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due
Home equity lines of credit [Member]    
Financing Receivable, Past Due [Line Items]    
Current   16,983
Total Loans   16,983
Home equity lines of credit [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due  
Home equity lines of credit [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due  
Home equity lines of credit [Member] | 90 Days + Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Past Due  
v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Non-Accrual Loans Related Allowance for Credit Loss by Loan - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Non-Accrual [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Total $ 4,851 $ 5,084
Allowance for Credit Loss [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Total  
Specific Reserve [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Total  
One-to-Four Family Residential [Member] | Non-Accrual [Member]    
Financing Receivable, Nonaccrual [Line Items]    
One-to four-family residential 152 386
One-to-Four Family Residential [Member] | Allowance for Credit Loss [Member]    
Financing Receivable, Nonaccrual [Line Items]    
One-to four-family residential  
One-to-Four Family Residential [Member] | Specific Reserve [Member]    
Financing Receivable, Nonaccrual [Line Items]    
One-to four-family residential  
Commercial Real Estate [Member] | Non-Accrual [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Commercial real estate 2,225 2,224
Commercial Real Estate [Member] | Allowance for Credit Loss [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Commercial real estate  
Commercial Real Estate [Member] | Specific Reserve [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Commercial real estate  
Construction Loans [Member] | Non-Accrual [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Construction and land 2,474 2,474
Construction Loans [Member] | Allowance for Credit Loss [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Construction and land  
Construction Loans [Member] | Specific Reserve [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Construction and land  
Home Equity Loan [Member] | Non-Accrual [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Home equity lines of credit  
Home loans and lines of credit  
Home Equity Loan [Member] | Allowance for Credit Loss [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Home loans and lines of credit  
Home Equity Loan [Member] | Specific Reserve [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Home equity lines of credit  
Commercial Loan [Member] | Non-Accrual [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Commercial business
Commercial Loan [Member] | Allowance for Credit Loss [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Commercial business  
Commercial Loan [Member] | Specific Reserve [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Commercial business  
Other [Member] | Non-Accrual [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Other  
Other [Member] | Specific Reserve [Member]    
Financing Receivable, Nonaccrual [Line Items]    
Other  
v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Non-Performing,Collateral Dependent Loans
$ in Thousands
3 Months Ended
Dec. 31, 2023
USD ($)
Schedule Of Non Performing Collateral Dependent Loans Abstract  
One- to four-family residential $ 152
Commercial real estate 2,225
Land 2,474
Total $ 4,851
v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Impaired Loans
$ in Thousands
Sep. 30, 2023
USD ($)
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]  
Recorded Investment Impaired Loans with Specific Allowance
Related Allowance Impaired Loans with Specific Allowance
Recorded Investment Impaired Loans with No Specific Allowance 7,621
Total Impaired Loans Recorded Investment 7,621
Total Impaired Loans Unpaid Principal Balance 7,686
One-to four-family residential [Member]  
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]  
Recorded Investment Impaired Loans with Specific Allowance
Related Allowance Impaired Loans with Specific Allowance
Recorded Investment Impaired Loans with No Specific Allowance 2,031
Total Impaired Loans Recorded Investment 2,031
Total Impaired Loans Unpaid Principal Balance 2,031
Commercial Real Estate [Member]  
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]  
Recorded Investment Impaired Loans with Specific Allowance
Related Allowance Impaired Loans with Specific Allowance
Recorded Investment Impaired Loans with No Specific Allowance 2,969
Total Impaired Loans Recorded Investment 2,969
Total Impaired Loans Unpaid Principal Balance 2,969
Construction [Member]  
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]  
Recorded Investment Impaired Loans with Specific Allowance
Related Allowance Impaired Loans with Specific Allowance
Recorded Investment Impaired Loans with No Specific Allowance 2,474
Total Impaired Loans Recorded Investment 2,474
Total Impaired Loans Unpaid Principal Balance 2,539
Commercial business [Member]  
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]  
Recorded Investment Impaired Loans with Specific Allowance
Related Allowance Impaired Loans with Specific Allowance
Recorded Investment Impaired Loans with No Specific Allowance 147
Total Impaired Loans Recorded Investment 147
Total Impaired Loans Unpaid Principal Balance $ 147
v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Interest Income Recognized on Impaired Loan
$ in Thousands
3 Months Ended
Dec. 31, 2023
USD ($)
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Interest Income Recognized on Impaired Loan [Line Items]  
Impaired loans and interest income $ 5,754
Interest income recognized on an accrual basis on impaired loans 35
One-To-Four Family Residential [Member]  
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Interest Income Recognized on Impaired Loan [Line Items]  
Impaired loans and interest income 1,447
Interest income recognized on an accrual basis on impaired loans 20
Commercial Real Estate [Member]  
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Interest Income Recognized on Impaired Loan [Line Items]  
Impaired loans and interest income 1,269
Interest income recognized on an accrual basis on impaired loans 13
Construction [Member]  
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Interest Income Recognized on Impaired Loan [Line Items]  
Impaired loans and interest income 2,835
Commercial business [Member]  
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Interest Income Recognized on Impaired Loan [Line Items]  
Impaired loans and interest income 203
Interest income recognized on an accrual basis on impaired loans $ 2
v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Allowance for Loan Losses by Loan Category - USD ($)
$ in Thousands
3 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Sep. 30, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance $ 8,330 $ 8,433  
Loans receivable:      
Effect of adopting ASU 2016-13 (1,032)    
Charge-offs  
Recoveries  
Provision (credit) 385 317  
Balance-Ending balance 7,683 8,750  
Allowance for Loan Losses Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 8,330    
Allowance for Loan Losses Impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment    
Allowance for Loan Losses Impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     8,330
Loans receivable Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 698,206    
Loans Receivable For impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment     7,621
Loans Receivable For impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     690,585
One-to-Four Family Residential [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 1,259 1,223  
Loans receivable:      
Effect of adopting ASU 2016-13 7    
Charge-offs  
Recoveries  
Provision (credit) (75) 12  
Balance-Ending balance 1,191 1,235  
One-to-Four Family Residential [Member] | Allowance for Loan Losses Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 1,259    
One-to-Four Family Residential [Member] | Allowance for Loan Losses Impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment    
One-to-Four Family Residential [Member] | Allowance for Loan Losses Impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     1,259
One-to-Four Family Residential [Member] | Loans receivable Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 237,683    
One-to-Four Family Residential [Member] | Loans Receivable For impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment     2,031
One-to-Four Family Residential [Member] | Loans Receivable For impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     235,652
Commercial Real Estate [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 5,277 4,612  
Loans receivable:      
Effect of adopting ASU 2016-13 (589)    
Charge-offs  
Recoveries  
Provision (credit) 161 518  
Balance-Ending balance 4,849 5,130  
Commercial Real Estate [Member] | Allowance for Loan Losses Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 5,277    
Commercial Real Estate [Member] | Allowance for Loan Losses Impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment    
Commercial Real Estate [Member] | Allowance for Loan Losses Impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     5,277
Commercial Real Estate [Member] | Loans receivable Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 389,134    
Commercial Real Estate [Member] | Loans Receivable For impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment     2,969
Commercial Real Estate [Member] | Loans Receivable For impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     386,165
Construction [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 472 461  
Loans receivable:      
Effect of adopting ASU 2016-13 (55)    
Charge-offs  
Recoveries  
Provision (credit) 301 65  
Balance-Ending balance 718 526  
Construction [Member] | Allowance for Loan Losses Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 472    
Construction [Member] | Allowance for Loan Losses Impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment    
Construction [Member] | Allowance for Loan Losses Impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     472
Construction [Member] | Loans receivable Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 21,853    
Construction [Member] | Loans Receivable For impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment     2,474
Construction [Member] | Loans Receivable For impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     19,379
Home Equity Lines of Credit [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 207 263  
Loans receivable:      
Effect of adopting ASU 2016-13 (87)    
Charge-offs  
Recoveries  
Provision (credit) (40) (7)  
Balance-Ending balance 80 256  
Home Equity Lines of Credit [Member] | Allowance for Loan Losses Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 207    
Home Equity Lines of Credit [Member] | Allowance for Loan Losses Impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment    
Home Equity Lines of Credit [Member] | Allowance for Loan Losses Impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     207
Home Equity Lines of Credit [Member] | Loans receivable Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 16,983    
Home Equity Lines of Credit [Member] | Loans Receivable For impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment    
Home Equity Lines of Credit [Member] | Loans Receivable For impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     16,983
Commercial Business [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 939 1,484  
Loans receivable:      
Effect of adopting ASU 2016-13 (133)    
Charge-offs  
Recoveries  
Provision (credit) 39 (109)  
Balance-Ending balance 845 1,375  
Commercial Business [Member] | Allowance for Loan Losses Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 939    
Commercial Business [Member] | Allowance for Loan Losses Impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment    
Commercial Business [Member] | Allowance for Loan Losses Impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     939
Commercial Business [Member] | Loans receivable Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 30,194    
Commercial Business [Member] | Loans Receivable For impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment     147
Commercial Business [Member] | Loans Receivable For impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     30,047
Other [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 2 1  
Loans receivable:      
Effect of adopting ASU 2016-13 (1)    
Charge-offs  
Recoveries  
Provision (credit) (1)  
Balance-Ending balance 1  
Other [Member] | Allowance for Loan Losses Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 2    
Other [Member] | Allowance for Loan Losses Impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment    
Other [Member] | Allowance for Loan Losses Impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     2
Other [Member] | Loans receivable Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 2,359    
Other [Member] | Loans Receivable For impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment    
Other [Member] | Loans Receivable For impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     2,359
Unallocated [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 174 389  
Loans receivable:      
Effect of adopting ASU 2016-13 (174)    
Charge-offs  
Recoveries  
Provision (credit) (162)  
Balance-Ending balance $ 227  
Unallocated [Member] | Allowance for Loan Losses Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance 174    
Unallocated [Member] | Allowance for Loan Losses Impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment    
Unallocated [Member] | Allowance for Loan Losses Impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment     174
Unallocated [Member] | Loans receivable Beginning [Member]      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Balance - Beginning balance    
Unallocated [Member] | Loans Receivable For impairment [Member]      
Loans receivable:      
Collectively evaluated for impairment    
Unallocated [Member] | Loans Receivable For impairment One [Member]      
Loans receivable:      
Individually evaluated for impairment    
v3.24.0.1
Loans Receivable, Net and Related Allowance for Credit Losses (Details) - Schedule of Troubled Debt Restructuring
$ in Thousands
3 Months Ended
Dec. 31, 2022
USD ($)
Schedule of Troubled Debt Restructuring [Line Items]  
Number of Loans 1
Investment Before TDR Modification $ 97
Investment After TDR Modification $ 107
One-to four-family residential [Member]  
Schedule of Troubled Debt Restructuring [Line Items]  
Number of Loans 1
Investment Before TDR Modification $ 97
Investment After TDR Modification $ 107
v3.24.0.1
DEPOSITS (Details) - USD ($)
Dec. 31, 2023
Sep. 30, 2023
Deposits [Line Items]    
Brokered certificates of deposit $ 15,500,000 $ 13,800,000
FDIC insurance limit on bank deposit accounts 250,000 250,000
Deposit exceed FDIC insurance limit   429,900,000
Collateralized deposits 120,200,000 109,300,000
Deposits [Member]    
Deposits [Line Items]    
Brokered certificates of deposit 13,800,000 $ 14,000,000
Deposit [Member]    
Deposits [Line Items]    
Deposit exceed FDIC insurance limit $ 456,700,000  
v3.24.0.1
DEPOSITS (Details) - Schedule of Deposits by Type of Account - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Schedule of Deposits by Type of Account [Abstract]    
Demand accounts $ 164,453 $ 188,550
Savings accounts 60,008 62,168
NOW accounts 119,738 115,182
Money market accounts 306,886 284,885
Certificates of deposit 100,547 92,725
Retirement accounts 11,916 11,943
Total deposits $ 763,548 $ 755,453
v3.24.0.1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($)
Dec. 31, 2023
Oct. 01, 2023
Sep. 30, 2023
Financial Instruments with Off-Balance-Sheet Risk [Abstract]      
Allowance for credit losses   $ 540,000  
Off-balance sheet credit losses $ 637,000   $ 0
v3.24.0.1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - Schedule of Information Regarding Derivatives - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Customer Interest Rate Swaps [Member]    
Classified in Other Assets:    
Notional Amount $ 35,743 $ 36,020
Average Maturity (Years) 3 years 10 months 24 days 4 years 2 months 12 days
Weighted Average Fixed Rate 4.96% 4.96%
Weighted Average Variable Rate 1 Mo. BSBY + 2.44 1 Mo. BSBY + 2.44
Fair Value $ 1,961 $ 2,579
Classified in Other Assets [Member]    
Classified in Other Assets:    
Notional Amount $ 35,743 $ 36,020
Average Maturity (Years) 3 years 10 months 24 days 4 years 2 months 12 days
Weighted Average Fixed Rate 4.96% 4.96%
Fair Value $ 1,961 $ 2,579
3rd Party Interest Rate swaps [Member]    
Classified in Other Assets:    
Notional Amount $ 35,743 $ 36,020
Average Maturity (Years) 3 years 10 months 24 days 4 years 2 months 12 days
Weighted Average Fixed Rate 4.96% 4.96%
Weighted Average Variable Rate 1 Mo. BSBY + 2.44 1 Mo. BSBY + 2.44
Fair Value $ 1,961 $ 2,579
Classified in Other Liabilities [Member]    
Classified in Other Assets:    
Notional Amount $ 35,743 $ 36,020
Average Maturity (Years) 3 years 10 months 24 days 4 years 2 months 12 days
Weighted Average Fixed Rate 4.96% 4.96%
Fair Value $ 1,961 $ 2,579
v3.24.0.1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - Schedule of Financial Instruments with Off-Balance-Sheet Risk - USD ($)
$ in Thousands
Dec. 31, 2023
Sep. 30, 2023
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]    
Financial instruments - contract amounts $ 117,010 $ 121,056
Letters of Credit [Member]    
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]    
Financial instruments - contract amounts 1,098 1,073
Unused Lines of Credit [Member]    
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]    
Financial instruments - contract amounts 95,333 89,933
Fixed Rate Loan Commitments [Member]    
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]    
Financial instruments - contract amounts 15,610 3,578
Variable Rate Loan Commitments [Member]    
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]    
Financial instruments - contract amounts $ 4,969 $ 26,472

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