LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of loans receivable, net

Loans receivable, net were comprised of the following:

	December 31,			September 30,
	2021			2021
	(In thousands)
One-to-four family residential	$	200,807		$	203,019
Commercial real estate		278,989			280,848
Construction		24,282			20,350
Home equity lines of credit		17,667			17,930
Commercial business		58,320			68,719
Other		3,289			3,751
Total loans receivable		583,354			594,617
Net deferred loan costs		(860	)		(1,241	)
Allowance for loan losses		(8,228	)		(8,075	)
Total loans receivable, net	$	574,266		$	585,301

Schedule of impaired loans

The following tables present impaired loans by class, segregated by those for which a specific allowance was required and charged-off and those for which a specific allowance was not necessary at the dates presented:

					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
	(In thousands)
December 31, 2021
One-to-four family residential	$	-	$	-	$	2,217	$	2,217	$	2,217
Commercial real estate		-		-		2,202		2,202		2,202
Construction		2,835		224		1,745		4,580		4,645
Commercial business		-		-		1,506		1,506		1,506
Total impaired loans	$	2,835	$	224	$	7,670	$	10,505	$	10,570
September 30, 2021
One-to-four family residential	$	-	$	-	$	2,711	$	2,711	$	2,711
Commercial real estate		-		-		2,270		2,270		2,270
Construction		2,835		224		1,745		4,580		4,645
Commercial business		-		-		1,507		1,507		1,507
Total impaired loans	$	2,835	$	224	$	8,233	$	11,068	$	11,133

Schedule of average recorded investment in impaired loans

The following tables present the average recorded investment in impaired loans for the three and nine months ended December 31, 2021 and 2020. There was no interest income recognized on impaired loans during the periods presented.

	Three Months
	Ended December 31, 2021
	(In thousands)
One-to-four family residential	$	2,464
Commercial real estate		2,236
Construction		4,580
Commercial business		1,507
Average investment in impaired loans	$	10,787

	Three Months
	Ended December 31, 2020
	(In thousands)
One-to-four family residential	$	2,490
Commercial real estate		4,370
Construction		4,861
Commercial business		1,959
Average investment in impaired loans	$	13,680

Schedule of loan portfolio summarized by Bank's internal risk rating system

The following tables present the classes 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 at the dates presented:

			Special
	Pass		Mention		Substandard		Doubtful		Total
	(In thousands)
December 31, 2021
One-to-four family residential	$	198,911	$	997	$	899	$	-	$	200,807
Commercial real estate		277,647		201		1,141		-		278,989
Construction		19,702		-		4,580		-		24,282
Home equity lines of credit		19,702		-		-		-		17,667
Commercial business		56,971		-		1,349		-		58,320
Other		3,289		-		-		-		3,289
Total	$	574,187	$	1,198	$	7,969	$	-	$	583,354
September 30, 2021
One-to-four family residential	$	201,512	$	-	$	1,507	$	-	$	203,019
Commercial real estate		272,408		6,679		1,761		-		280,848
Construction		15,770		-		4,580		-		20,350
Home equity lines of credit		17,930		-		-		-		17,930
Commercial business		67,360		10		1,349		-		68,719
Other		3,751		-		-		-		3,751
Total	$	578,731	$	6,689	$	9,197	$	-	$	594,617

Schedule of aging analysis of past due loans, segregated by class of loans

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 following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans at the dates presented:

18

			30-59		60-89
			Days		Days		90 Days +		Total		Non-		Total
	Current		Past Due		Past Due		Past Due		Past Due		Accrual		Loans
	(In thousands)
December 31, 2021
One-to-four family residential	$	200,679	$	-	$	98	$	30	$	128	$	30	$	200,807
Commercial real estate		278,735		-		-		254		254		254		278,989
Construction		19,702		-		-		4,580		4,580		4,580		24,282
Home equity lines of credit		17,667		-		-		-		-		-		17,667
Commercial business		56,971		-		-		1,349		1,349		1,349		58,320
Other		3,289		-		-		-		-		-		3,289
Total	$	577,043	$	-	$	98	$	6,213	$	6,311	$	6,213	$	583,354
September 30, 2021
One-to-four family residential	$	201,868	$	-	$	-	$	1,151	$	1,151	$	1,151	$	203,019
Commercial real estate		279,769		-		-		1,079		1,079		1,079		280,848
Construction		15,770		-		-		4,580		4,580		4,580		20,350
Home equity lines of credit		17,930		-		-		-		-		-		17,930
Commercial business		67,370		-		-		1,349		1,349		1,349		68,719
Other		3,751		-		-		-		-		-		3,751
Total	$	586,458	$	-	$	-	$	8,159	$	8,159	$	8,159	$	594,617

Schedule of activity in the allowance for loan losses by portfolio segment

The following table summarizes the ALL by loan category and the related activity for the three months ended December 31, 2021 and 2020:

	One-to-Four									Home Equity
	Family			Commercial						Lines of		Commercial
	Residential			Real Estate			Construction			Credit		Business		Other			Unallocated			Total
	(In thousands)
Balance- September 30,  2021	$	1,136		$	3,744		$	594		$	232	$	2,046	$	15		$	308		$	8,075
Charge-offs		-			-			-			-		-		-			-			-
Recoveries		-			52			-			-		-		-			-			52
Provision (credit)		(43	)		(90	)		130			-		83		(14	)		35			101
Balance- December 31,  2021	$	1,093		$	3,706		$	724		$	232	$	2,129	$	1		$	343		$	8,228
Balance- September 30,  2020	$	1,035		$	3,232		$	672		$	179	$	1,034	$	1		$	247		$	6,400
Charge-offs		-			-			-			-		-		-			-			-
Recoveries		-			-			-			-		90		-			-			90
Provision (credit)		120			176			(202	)		88		592		1			(135	)		640
Balance- December 31,  2020	$	1,155		$	3,408		$	470		$	267	$	1,716	$	2		$	112		$	7,130

The following tables summarize the ALL 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 December 31, 2021 and September 30, 2021:

	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 - December 31, 2021	$	1,093	$	3,706	$	724	$	232	$	2,129	$	1	$	343	$	8,228
Individually evaluated for impairment		-		-		224		-		-		-		-		224
Collectively evaluated for impairment		1,093		3,706		500		232		2,129		1		343		8,004
Loans receivable:
Balance - December 31, 2021	$	200,807	$	278,989	$	24,282	$	17,667	$	58,320	$	3,289	$	-	$	583,354
Individually evaluated for impairment		2,217		2,202		4,580		-		1,506		-		-		10,505
Collectively evaluated for impairment		198,590		276,787		19,702		17,667		56,814		3,289		-		572,849

	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, 2021	$	1,136	$	3,744	$	594	$	232	$	2,046	$	15	$	308	$	8,075
Individually evaluated for impairment		-		-		224		-		-		-		-		224
Collectively evaluated for impairment		1,136		3,744		370		232		2,046		15		308		7,851
Loans receivable:
Balance - September 30, 2021	$	203,019	$	280,848	$	20,350	$	17,930	$	68,719	$	3,751	$	-	$	594,617
Individually evaluated for impairment		2,711		2,270		4,580		-		1,507		-		-		11,068
Collectively evaluated for impairment		200,308		278,578		15,770		17,930		67,212		3,751		-		583,549

Schedule of troubled debt restructurings

A default on a TDR loan for purposes of this disclosure occurs when a borrower is 90 days past due or a foreclosure or repossession of the applicable collateral has occurred. There were no TDRs for the three months ended December 31, 2021, and there was one TDR totaling $218,000 during the three months ended December 31, 2020.

	Three Months Ended December 31, 2020
	Number of		Investment Before		Investment After
	Loans		TDR Modification		TDR Modification
	(Dollars in thousands)
One-to-four family residential		1	$	218	$	249
Total		1	$	218	$	249