10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2014

OR

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Commission File No. 001-33384

ESSA Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Pennsylvania	20-8023072
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

200 Palmer Street, Stroudsburg, Pennsylvania	18360
(Address of Principal Executive Offices)	(Zip Code)

(570) 421-0531

(Registrant’s telephone number)

N/A

(Former name or former address, if changed since last report)

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 preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such requirements for the past 90 days.    YES  x    NO  ¨.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site if any, every Interactive Data File required to be submitted and 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 and post such files).    YES  x    NO  ¨

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

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES  ¨    NO  x

As of May 6, 2014 there were 11,871,478 shares of the Registrant’s common stock, par value $0.01 per share, outstanding.

ESSA Bancorp, Inc.

FORM 10-Q

Table of Contents

		Page
Part I. Financial Information
Item 1.	Financial Statements (unaudited)		3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		40
Item 4.	Controls and Procedures		40
Part II. Other Information
Item 1.	Legal Proceedings		41
Item 1A.	Risk Factors		41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		41
Item 3.	Defaults Upon Senior Securities		41
Item 4.	Mine Safety Disclosures		41
Item 5.	Other Information		41
Item 6.	Exhibits		42
Signature Page			43

Part I. Financial Information

Item 1. Financial Statements

ESSA BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

	March 31, 2014			September 30, 2013
	(dollars in thousands)
Cash and due from banks	$	12,895		$	22,393
Interest-bearing deposits with other institutions		27,767			4,255
Total cash and cash equivalents		40,662			26,648
Certificates of deposit		1,767			1,767
Investment securities available for sale, at fair value		314,329			315,622
Loans receivable (net of allowance for loan losses of $8,662 and $8,064)		906,356			928,230
Regulatory stock, at cost		10,353			9,415
Premises and equipment, net		17,055			15,747
Bank-owned life insurance		29,250			28,797
Foreclosed real estate		2,168			2,111
Intangible assets, net		1,992			2,466
Goodwill		10,259			8,817
Deferred income taxes		11,350			11,183
Other assets		19,853			21,512
TOTAL ASSETS	$	1,365,394		$	1,372,315
LIABILITIES
Deposits	$	998,430		$	1,041,059
Short-term borrowings		38,000			23,000
Other borrowings		145,550			129,260
Advances by borrowers for taxes and insurance		8,870			4,962
Other liabilities		6,810			7,588
TOTAL LIABILITIES		1,197,660			1,205,869
STOCKHOLDERS’ EQUITY
Preferred Stock ($.01 par value; 10,000,000 shares authorized, none issued)		—			—
Common stock ($.01 par value; 40,000,000 shares authorized, 18,133,095 issued; 11,885,778 and 11,945,564 outstanding at March 31, 2014 and September 30, 2013)		181			181
Additional paid in capital		182,586			182,440
Unallocated common stock held by the Employee Stock Ownership Plan (ESOP)		(10,306	)		(10,532	)
Retained earnings		73,912			71,709
Treasury stock, at cost; 6,247,317 and 6,187,531 shares outstanding at March 31, 2014 and September 30, 2013, respectively		(76,793	)		(76,117	)
Accumulated other comprehensive loss		(1,846	)		(1,235	)
TOTAL STOCKHOLDERS’ EQUITY		167,734			166,446
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,365,394		$	1,372,315

See accompanying notes to the unaudited consolidated financial statements.

3

ESSA BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

	For the Three Months Ended March 31,						For the Six Months Ended March 31,
	2014			2013			2014			2013
	(dollars in thousands, except per share data)
INTEREST INCOME
Loans receivable, including fees	$	9,843		$	11,041		$	20,366		$	23,278
Investment securities:
Taxable		1,523			1,558			3,050			3,188
Exempt from federal income tax		72			73			145			127
Other investment income		85			18			144			47
Total interest income		11,523			12,690			23,705			26,640
INTEREST EXPENSE
Deposits		1,906			1,848			3,894			3,819
Short-term borrowings		27			46			50			82
Other borrowings		652			912			1,332			2,136
Total interest expense		2,585			2,806			5,276			6,037
NET INTEREST INCOME		8,938			9,884			18,429			20,603
Provision for loan losses		750			850			1,500			1,850
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		8,188			9,034			16,929			18,753
NONINTEREST INCOME
Service fees on deposit accounts		722			711			1,514			1, 518
Services charges and fees on loans		104			268			289			497
Trust and investment fees		230			196			441			411
Gain on sale of investments, net		236			708			236			738
Gain on sale of loans, net		—			81			—			415
Earnings on Bank-owned life insurance		225			248			453			474
Insurance commissions		227			232			420			407
Other		8			14			26			24
Total noninterest income		1,752			2,458			3,379			4,484
NONINTEREST EXPENSE
Compensation and employee benefits		4,357			5,068			8,665			9,624
Occupancy and equipment		1,065			1,030			1,983			1,979
Professional fees		498			592			907			904
Data processing		769			805			1,449			1,468
Advertising		114			145			220			255
Federal Deposit Insurance Corporation (FDIC) premiums		235			293			464			478
Gain on foreclosed real estate		(93	)		(172	)		(51	)		(398	)
Merger related costs		88			—			346			—
Amortization of intangible assets		237			249			474			499
Other		614			780			1,175			1,486
Total noninterest expense		7,884			8,790			15,632			16,295
Income before income taxes		2,056			2,702			4,676			6,942
Income taxes		554			662			1,170			2,023
NET INCOME	$	1,502			2,040		$	3,506		$	4,919
Earnings per share
Basic	$	0.14			0.17		$	0.32		$	0.41
Diluted	$	0.14			0.17		$	0.32		$	0.41
Dividends per share	$	0.07			0.05		$	0.12		$	0.10

See accompanying notes to the unaudited consolidated financial statements.

4

ESSA BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(UNAUDITED)

	Three Months Ended March 31,						Six Months Ended March 31,
	2014			2013			2014			2013
	(dollars in thousands)
Net income	$	1,502		$	2,040		$	3,506		$	4,919
Other comprehensive income (loss):
Investment securities available for sale:
Unrealized holding gain (loss)		1,333			(946	)		(703	)		(1,877	)
Tax effect		(453	)		321			239			638
Reclassification of gains recognized in net income		(236	)		(708	)		(236	)		(738	)
Tax effect		80			241			80			251
Net of tax amount		724			(1,092	)		(620	)		(1,726	)
Pension plan adjustment:
Related to actuarial losses and prior service cost		7			99			14			196
Tax effect		(2	)		(32	)		(5	)		(65	)
Net of tax amount		5			67			9			131
Total other comprehensive income (loss)		729			(1,025	)		(611	)		(1,595	)
Comprehensive income	$	2,231		$	1,015		$	2,895		$	3,324

See accompanying notes to the unaudited consolidated financial statements.

5

ESSA BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

	Common Stock
	Number of Shares			Amount		Additional Paid In Capital		Unallocated Common Stock Held by the ESOP			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
	(dollars in thousands)
Balance, September 30, 2013		11,945,564		$	181	$	182,440	$	(10,532	)	$	71,709		$	(76,117	)	$	(1,235	)	$	166,446
Net income												3,506									3,506
Other comprehensive loss																		(611	)		(611	)
Cash dividends declared ($.12 per share)												(1,303	)								(1,303	)
Stock based compensation							122														122
Allocation of ESOP stock							24		226												250
Treasury shares purchased		(59,786	)												(676	)					(676	)
Balance, March 31, 2014		11,885,778		$	181	$	182,586	$	(10,306	)	$	73,912		$	(76,793	)	$	(1,846	)	$	167,734

See accompanying notes to the unaudited consolidated financial statements.

6

ESSA BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

	For the Six Months Ended March 31,
	2014			2013
	(dollars in thousands)
OPERATING ACTIVITIES
Net income	$	3,506		$	4,919
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		1,500			1,850
Provision for depreciation and amortization		583			569
Amortization and accretion of discounts and premiums, net		467			891
Net gain on sale of investment securities		(236	)		(738	)
Gain on sale of loans, net		—			(415	)
Origination of mortgage loans sold		—			(18,821	)
Proceeds from sale of mortgage loans originated for sale		—			19,582
Compensation expense on ESOP		250			239
Stock based compensation		122			1,055
Decrease in accrued interest receivable		222			257
Decrease in accrued interest payable		(24	)		(281	)
Earnings on bank-owned life insurance		(453	)		(474	)
Deferred federal income taxes		(148	)		745
Decrease in prepaid FDIC premiums		—			449
Increase in accrued pension liability		—			408
Gain on foreclosed real estate, net		(51	)		(398	)
Amortization of identifiable intangible assets		474			499
Other, net		994			2,084
Net cash provided by operating activities		7,206			12,420
INVESTING ACTIVITIES
Purchase of certificates of deposit		—			(500	)
Investment securities available for sale:
Proceeds from sale of investment securities		8,065			39,189
Proceeds from principal repayments and maturities		37,245			65,070
Purchases		(45,221	)		(92,372	)
Decrease in loans receivable, net		20,065			8,689
Redemption of FHLB stock		1,484			5,652
Purchase of FHLB stock		(2,422	)		—
Investment in limited partnership		—			(110	)
Proceeds from sale of foreclosed real estate		1,367			2,393
Acquisition, including cash acquired		4,654			—
Capital improvements to foreclosed real estate		—			(39	)
Purchase of premises, equipment, and software		(267	)		(481	)
Net cash provided by investing activities		24,970			27,491
FINANCING ACTIVITIES
(Decrease) increase in deposits, net		(51,381	)		14,395
Net increase (decrease) in short-term borrowings		15,000			(10,243	)
Proceeds from other borrowings		30,500			16,800
Repayment of other borrowings		(14,210	)		(50,200	)
Increase in advances by borrowers for taxes and insurance		3,908			5,993
Purchase of treasury stock shares		(676	)		(7,064	)
Dividends on common stock		(1,303	)		(1,182	)
Net cash used for financing activities		(18,162	)		(31,501	)
Increase in cash and cash equivalents		14,014			8,410
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		26,648			15,550
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	40,662		$	23,960
SUPPLEMENTAL CASH FLOW DISCLOSURES
Cash Paid:
Interest	$	5,300		$	6,318
Income taxes		2			655
Noncash items:
Transfers from loans to foreclosed real estate	$	1,373		$	657
Treasury stock payable		—			26
Acquisition of FNCB:
Cash received	$	4,640		$	—
Noncash assets acquired
Loans receivable and accrued interest receivable	$	1,033		$	—
Premises and equipment		1,626			—
Goodwill		1,442			—
		4,101			—
Liabilities assumed:
Certificates of deposit	$	3,069		$	—
Deposits other than certificates of deposit		5,683			—
		8,752			—
Net noncash assets acquired	$	(4,651	)	$	—
Cash acquired	$	11		$	—

See accompanying notes to the unaudited consolidated financial statements.

7

ESSA BANCORP, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(unaudited)

1. Nature of Operations and Basis of Presentation

The consolidated financial statements include the accounts of ESSA Bancorp, Inc. (the “Company”), and its wholly owned subsidiary, ESSA Bank & Trust (the “Bank”), and the Bank’s wholly owned subsidiaries, ESSACOR, Inc.; Pocono Investments Company; ESSA Advisory Services, LLC; Integrated Financial Corporation; and Integrated Abstract Incorporated, a wholly owned subsidiary of Integrated Financial Corporation. The primary purpose of the Company is to act as a holding company for the Bank. The Company is subject to regulation and supervision as a savings and loan holding company by the Federal Reserve Board. The Bank is a Pennsylvania-chartered savings bank located in Stroudsburg, Pennsylvania. The Bank’s primary business consists of the taking of deposits and granting of loans to customers generally in Monroe, Northampton and Lehigh counties, Pennsylvania. The Bank is subject to regulation and supervision by the Pennsylvania Banking Department and the Federal Deposit Insurance Corporation. The investment in subsidiary on the parent company’s financial statements is carried at the parent company’s equity in the underlying net assets.

ESSACOR, Inc. is a Pennsylvania corporation that has been used to purchase properties at tax sales that represent collateral for delinquent loans of the Bank. Pocono Investment Company is a Delaware corporation formed as an investment company subsidiary to hold and manage certain investments, including certain intellectual property. ESSA Advisory Services, LLC is a Pennsylvania limited liability company owned 100 percent by ESSA Bank & Trust. ESSA Advisory Services, LLC is a full-service insurance benefits consulting company offering group services such as health insurance, life insurance, short-term and long-term disability, dental, vision, and 401(k) retirement planning as well as individual health products. Integrated Financial Corporation is a Pennsylvania Corporation that provided investment advisory services to the general public as a former subsidiary of First Star Bank. The Company acquired First Star Bank in a transaction that closed on July 31, 2012. Integrated Financial Corporation is currently inactive. Integrated Abstract Incorporated is a Pennsylvania Corporation that provides title insurance services. All significant intercompany accounts and transactions have been eliminated in consolidation.

The unaudited consolidated financial statements reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of the results of the interim periods and are of a normal and recurring nature. Operating results for the six month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending September 30, 2014.

2. Earnings per Share

The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation for the three and six month periods ended March 31, 2014 and 2013.

	Three months ended						Six months ended
	March 31, 2014			March 31, 2013			March 31, 2014			March 31, 2013
Weighted-average common shares outstanding		18,133,095			18,133,095			18,133,095			18,133,095
Average treasury stock shares		(6,236,798	)		(5,261,181	)		(6,213,543	)		(5,081,861	)
Average unearned ESOP shares		(1,024,111	)		(1,069,387	)		(1,029,831	)		(1,075,107	)
Average unearned non-vested shares		(12,667	)		(38,945	)		(13,864	)		(43,587	)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share		10,859,519			11,763,582			10,875,857			11,932,540
Additional common stock equivalents (non-vested stock) used to calculate diluted earnings per share		—			—			—			—
Additional common stock equivalents (stock options) used to calculate diluted earnings per share		184			—			8,214			—
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share		10,859,703			11,763,582			10,884,071			11,932,540

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At March 31, 2014 and 2013 there were options to purchase 317,910 and 1,458,379 shares, respectively, of common stock outstanding at a price of $12.35 per share that were not included in the computation of diluted EPS because to do so would have been anti-dilutive. At March 31, 2014 and 2013 there were 8,886 and 19,110 shares, respectively, of nonvested stock outstanding at prices of $10.94 and $12.35 per share, respectively that were not included in the computation of diluted EPS because to do so would have been anti-dilutive.

3. Use of Estimates in the Preparation of Financial Statements

The accounting principles followed by the Company and its subsidiaries and the methods of applying these principles conform to U.S. generally accepted accounting principles (“GAAP”) and to general practice within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the Consolidated Balance Sheet date and related revenues and expenses for the period. Actual results could differ significantly from those estimates.

4. Recent Accounting Pronouncements:

In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The amendments in this Update affect the scope, measurement, and disclosure requirements for investment companies under U.S. GAAP. The amendments do all of the following: 1. Change the approach to the investment company assessment in Topic 946, clarify the characteristics of an investment company, and provide comprehensive guidance for assessing whether an entity is an investment Company. 2. Require an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting. 3. Require the following additional disclosures: (a) the fact that the entity is an investment company and is applying the guidance in Topic 946, (b) information about changes, if any, in an entity’s status as an investment company, and (c) information about financial support provided or contractually required to be provided by an investment company to any of its investees. The amendments in this Update are effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. This ASU is not expected to have a significant impact on the Company’s financial statements.

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements.

In January 2014, FASB issued ASU 2014-01, Investments – Equity Method and Join Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the

9

applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This ASU is not expected to have a significant impact on the Company’s financial statements.

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5. Investment Securities

The amortized cost and fair value of investment securities available for sale are summarized as follows (in thousands):

	March 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
Fannie Mae	$	119,520	$	1,232	$	(1,719	)	$	119,033
Freddie Mac		64,581		586		(1,389	)		63,778
Governmental National Mortgage Association		31,602		170		(205	)		31,567
Other mortgage-backed securities		2,883		—		(12	)		2,871
Total mortgage-backed securities		218,586		1,988		(3,325	)		217,249
Obligations of states and political subdivisions		22,810		722		(426	)		23,106
U.S. government agency securities		48,276		192		(627	)		47,841
Corporate obligations		13,199		197		(96	)		13,300
Trust-preferred securities		4,990		556		—			5,546
Other debt securities		5,275		19		(32	)		5,262
Total debt securities		313,136		3,674		(4,506	)		312,304
Equity securities - financial services		2,025		—		—			2,025
Total	$	315,161	$	3,674	$	(4,506	)	$	314,329

	September 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
Fannie Mae	$	114,927	$	1,691	$	(1,595	)	$	115,023
Freddie Mac		60,111		838		(1,252	)		59,697
Governmental National Mortgage Association		39,692		289		(230	)		39,751
Other mortgage-backed securities		3,385		—		(19	)		3,366
Total mortgage-backed securities		218,115		2,818		(3,096	)		217,837
Obligations of states and political subdivisions		23,754		654		(499	)		23,909
U.S. government agency securities		52,775		225		(480	)		52,520
Corporate obligations		12,756		186		(169	)		12,773
Trust-preferred securities		4,943		471		—			5,414
Other debt securities		1,147		7		—			1,154
Total debt securities		313,490		4,361		(4,244	)		313,607
Equity securities - financial services		2,025		—		(10	)		2,015
Total	$	315,515	$	4,361	$	(4,254	)	$	315,622

11

The amortized cost and fair value of debt securities at March 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands):

	Available For Sale
	Amortized Cost		Fair Value
Due in one year or less	$	1,622	$	1,635
Due after one year through five years		45,608		45,754
Due after five years through ten years		63,886		63,928
Due after ten years		202,020		200,987
Total	$	313,136	$	312,304

For the three and six months ended March 31, 2014, the Company realized gross gains of $247,000 and gross losses of $11,000 on proceeds from the sale of investment securities of $8.1 million. For the three months ended March 31, 2013, the Company realized gross gains of $725,000 and gross losses of $17,000 on proceeds from the sale of investment securities of $38.1 million. For the six months ended March 31, 2013, the Company realized gross gains of $756,000 and gross losses of $18,000 on proceeds from the sale of investment securities of $39.2 million.

6. Unrealized Losses on Securities

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position (in thousands):

	March 31, 2014
	Number of Securities		Less than Twelve Months					Twelve Months or Greater					Total
			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fannie Mae		34	$	39,925	$	(989	)	$	15,211	$	(730	)	$	55,136	$	(1,719	)
Freddie Mac		28		37,382		(972	)		10,072		(417	)		47,454		(1,389	)
Governmental National Mortgage Association		8		5,004		(29	)		6,747		(176	)		11,751		(205	)
Other mortgage-backed securities		3		559		(2	)		2,312		(10	)		2,871		(12	)
Obligations of states and political subdivisions		6		2,883		(117	)		4,752		(309	)		7,635		(426	)
U.S. government agency securities		13		33,970		(627	)		—		—			33,970		(627	)
Corporate obligations		6		5,415		(96	)		—		—			5,415		(96	)
Other debt securities		3		4,096		(32	)		—		—			4,096		(32	)
Total		101	$	129,234	$	(2,864	)	$	39,094	$	(1,642	)	$	168,328	$	(4,506	)

	September 30, 2013
	Number of Securities		Less than Twelve Months					Twelve Months or Greater					Total
			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fannie Mae		30	$	47,814	$	(1,589	)	$	1,057	$	(6	)	$	48,871	$	(1,595	)
Freddie Mac		20		32,781		(1,252	)		—		—			32,781		(1,252	)
Governmental National Mortgage Association		6		10,301		(230	)		—		—			10,301		(230	)
Other mortgage-backed securities		3		3,366		(19	)		—		—			3,366		(19	)
Obligations of states and political subdivisions		7		8,064		(499	)		—		—			8,064		(499	)
U.S. government agency securities		10		30,084		(479	)		999		(1	)		31,083		(480	)
Corporate obligations		5		5,042		(169	)		—		—			5,042		(169	)
Equity securities-financial services		1		1,990		(10	)		—		—			1,990		(10	)
Total		82	$	139,442	$	(4,247	)	$	2,056	$	(7	)	$	141,498	$	(4,254	)

12

The Company’s investment securities portfolio contains unrealized losses on securities, including mortgage-related instruments issued or backed by the full faith and credit of the United States government, or generally viewed as having the implied guarantee of the U.S. government, debt obligations of a U.S. state or political subdivision and corporate debt obligations.

The Company reviews its position quarterly and has asserted that at March 31, 2014, the declines outlined in the above table represent temporary declines and the Company would not be required to sell the security before its anticipated recovery in market value.

The Company has concluded that any impairment of its investment securities portfolio is not other than temporary but is the result of interest rate changes that are not expected to result in the non-collection of principal and interest during the period.

7. Loans Receivable, Net and Allowance for Loan Losses

Loans receivable consist of the following (in thousands):

	March 31, 2014		September 30, 2013
Held for investment:
Real Estate Loans:
Residential	$	662,233	$	686,651
Construction		2,853		2,288
Commercial		156,717		159,469
Commercial		10,612		10,125
Obligations of states and political subdivisions		40,344		33,445
Home equity loans and lines of credit		39,953		41,923
Other		2,306		2,393
		915,018		936,294
Less allowance for loan losses		8,662		8,064
Net loans	$	906,356	$	928,230

Included in the March 31, 2014 balances are loans acquired from FNCB Bank, as of the acquisition date as follows:

Real estate loans:
Residential	$	933
Home equity loans and lines of credit		77
Other		20
Total loans	$	1,030

	Total Loans		Individually Evaluated for Impairment		Loans Acquired with Deteriorated Credit Quality		Collectively Evaluated for Impairment
March 31, 2014
Real Estate Loans:
Residential	$	662,233	$	12,634	$	159	$	649,440
Construction		2,853		—		—		2,853
Commercial		156,717		18,517		5,955		132,245
Commercial		10,612		545		443		9,624
Obligations of states and political subdivisions		40,344		—		—		40,344
Home Equity loans and lines of credit		39,953		272		4		39,677
Other		2,306		—		—		2,306
Total	$	915,018	$	31,968	$	6,561	$	876,489

13

	Total Loans		Individually Evaluated for Impairment		Loans Acquired with Deteriorated Credit Quality		Collectively Evaluated for Impairment
September 30, 2013
Real Estate Loans:
Residential	$	686,651	$	14,018	$	271	$	672,362
Construction		2,288		—		—		2,288
Commercial		159,469		15,478		6,355		137,636
Commercial		10,125		220		502		9,403
Obligations of states and political subdivisions		33,445		—		—		33,445
Home Equity loans and lines of credit		41,923		379		3		41,541
Other		2,393		—		—		2,393
Total	$	936,294	$	30,095	$	7,131	$	899,068

We maintain a loan review system that allows for a periodic review of our loan portfolio and the early identification of potential impaired loans. Such system takes into consideration, among other things, delinquency status, size of loans, type and market value of collateral and financial condition of the borrowers. Specific loan loss allowances are established for identified losses based on a review of such information. A loan evaluated for impairment is considered to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans identified as impaired are evaluated independently. We do not aggregate such loans for evaluation purposes. Impairment is measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral-dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential mortgage loans for impairment disclosures, unless such loans are part of a larger relationship that is impaired, or are classified as a troubled debt restructuring.

A loan is considered to be a troubled debt restructuring (“TDR”) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates that are less than the current market rate for new obligations with similar risk. TDR loans that are in compliance with their modified terms and that yield a market rate may be removed from the TDR status after a period of performance.

14

The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired.

	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Recorded Investment		Interest Income Recognized
March 31, 2014
With no specific allowance recorded:
Real Estate Loans
Residential	$	8,715	$	10,089	$	—	$	9,855	$	150
Construction		—		—		—		—		—
Commercial		21,328		22,592		—		20,041		374
Commercial		988		1,019		—		1,002		6
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		239		558		—		319		2
Other		—		—		—		—		—
Total		31,270		34,258		—		31,217		532
With an allowance recorded:
Real Estate Loans
Residential		4,078		4,387		618		3,235		58
Construction		—		—		—		—		—
Commercial		3,144		3,196		263		2,355		—
Commercial		—		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		37		45		38		6		—
Other		—		—		—		—		—
Total		7,259		7,628		919		5,596		58
Total:
Real Estate Loans
Residential		12,793		14,476		618		13,090		208
Construction		—		—		—		—		—
Commercial		24,472		25,788		263		22,396		374
Commercial		988		1,019		—		1,002		6
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		276		603		38		325		2
Other		—		—		—		—		—
Total Impaired Loans	$	38,529	$	41,886	$	919	$	36,813	$	590

15

	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Recorded Investment		Interest Income Recognized
September 30, 2013
With no specific allowance recorded:
Real Estate Loans
Residential	$	11,251	$	13,013	$	—	$	9,716	$	159
Construction		—		—		—		—		—
Commercial		18,711		20,258		—		20,751		615
Commercial		722		731		—		1,034		9
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		382		683		—		373		3
Other		—		—		—		18		—
Total		31,066		34,685		—		31,892		786
With an allowance recorded:
Real Estate Loans
Residential		3,038		3,221		518		2,655		74
Construction		—		—		—		—		—
Commercial		3,122		3,178		301		2,839
Commercial		—		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		—		—		—		—
Other		—		—		—		—		—
Total		6,160		6,399		819		5,494		74
Total:
Real Estate Loans
Residential		14,289		16,234		518		12,371		233
Construction		—		—		—		—		—
Commercial		21,833		23,436		301		23,590		615
Commercial		722		731		—		1,034		9
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		382		683		—		373		3
Other		—		—		—		18		—
Total Impaired Loans	$	37,226	$	41,084	$	819	$	37,386	$	860

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. All loans greater than 90 days past due are considered Substandard. The portion of any loan that represents a specific allocation of the allowance for loan losses is placed in the Doubtful category. 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 Bank 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 bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank’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 Bank’s Commercial Loan Officers perform an annual review of all commercial relationships $250,000 or greater. Confirmation of the appropriate risk grade is included in the review on an ongoing basis. The Bank engages an external consultant to conduct loan reviews on at least a semi-annual basis. Generally, the external consultant reviews commercial relationships greater than $500,000 and/or all criticized relationships. Detailed reviews, including plans for resolution, are performed on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance.

16

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 internal risk rating system as of March 31, 2014 and September 30, 2013 (in thousands):

March 31, 2014	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate loans	$	126,234	$	7,470	$	22,707	$	306	$	156,717
Commercial		9,670		276		666		—		10,612
Obligations of states and political subdivisions		40,344		—		—		—		40,344
Total	$	176,248	$	7,746	$	23,373	$	306	$	207,673

September 30, 2013	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate loans	$	129,799	$	9,440	$	20,230	$	—	$	159,469
Commercial		9,466		436		223		—		10,125
Obligations of states and political subdivisions		33,445		—		—		—		33,445
Total	$	172,710	$	9,876	$	20,453	$	—	$	203,039

All other loans are underwritten and structured using standardized criteria and characteristics, primarily payment performance, and are normally risk rated and monitored collectively on a monthly basis. These are typically loans to individuals in the consumer categories and are delineated as either performing or non-performing. The following tables present the risk ratings in the consumer categories of performing and non-performing loans at March 31, 2014 and September 30, 2013 (in thousands):

	Performing		Non-performing		Total
March 31, 2014
Real estate loans:
Residential	$	653,430	$	8,803	$	662,233
Construction		2,853		—		2,853
Home Equity loans and lines of credit		39,563		390		39,953
Other		2,306		—		2,306
Total	$	698,152	$	9,193	$	707,345

	Performing		Non-performing		Total
September 30, 2013
Real estate loans:
Residential	$	675,706	$	10,945	$	686,651
Construction		2,288		—		2,288
Home Equity loans and lines of credit		41,584		339		41,923
Other		2,393		—		2,393
Total	$	721,971	$	11,284	$	733,255

17

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 as of March 31, 2014 and September 30, 2013 (in thousands):

	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non- Accrual		Total Loans
March 31, 2014
Real estate loans
Residential	$	649,512	$	2,834	$	1,084	$	—	$	8,803	$	12,721	$	662,233
Construction		2,853		—		—		—		—		—		2,853
Commercial		144,540		493		—		—		11,684		12,177		156,717
Commercial		9,093		199		—		—		1,320		1,519		10,612
Obligations of states and political subdivisions		40,344		—		—		—		—		—		40,344
Home equity loans and lines of credit		39,163		365		35		—		390		790		39,953
Other		2,299		7		—		—		—		7		2,306
Total	$	887,804	$	3,898	$	1,119	$	—	$	22,197	$	27,214	$	915,018

	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non- Accrual		Total Loans
September 30, 2013
Real estate loans
Residential	$	671,850	$	2,866	$	990	$	—	$	10,945	$	14,801	$	686,651
Construction		2,288		—		—		—		—		—		2,288
Commercial		146,062		2,589				—		10,818		13,407		159,469
Commercial		8,948		—		—		—		1,177		1,177		10,125
Obligations of states and political subdivisions		33,445		—		—		—		—		—		33,445
Home equity loans and lines of credit		41,380		127		77		—		339		543		41,923
Other		2,336		57		—		—		—		57		2,393
Total	$	906,309	$	5,639	$	1,067	$	—	$	23,279	$	29,985	$	936,294

Our allowance for loan losses is maintained at a level necessary to absorb loan losses that are both probable and reasonably estimable. Management, in determining the allowance for loan losses, considers the losses inherent in its loan portfolio and changes in the nature and volume of loan activities, along with the general economic and real estate market conditions. Our allowance for loan losses consists of two elements: (1) an allocated allowance, which comprises allowances established on specific loans and class allowances based on historical loss experience and current trends, and (2) an allocated allowance based on general economic conditions and other risk factors in our markets and portfolios. We maintain a loan review system, which allows for a periodic review of our loan portfolio and the early identification of potential impaired loans. Such system takes into consideration, among other things, delinquency status, size of loans, type and market value of collateral and financial condition of the borrowers. General loan loss allowances are based upon a combination of factors including, but not limited to, actual loan loss experience, composition of the loan portfolio, current economic conditions, management’s judgment and losses which are probable and reasonably estimable. The allowance is increased through provisions charged against current earnings and recoveries of previously charged-off loans. Loans that are determined to be uncollectible are charged against the allowance. While management uses available information to recognize probable and reasonably estimable loan losses, future loss provisions may be necessary, based on changing economic conditions. Payments received on impaired loans generally are either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. The allowance for loan losses as of March 31, 2014 is maintained at a level that represents management’s best estimate of losses inherent in the loan portfolio, and such losses were both probable and reasonably estimable.

In addition, the FDIC and the Pennsylvania Department of Banking, as an integral part of their examination process, have periodically reviewed our allowance for loan losses. The banking regulators may require that we recognize additions to the allowance based on its analysis and review of information available to it at the time of its examination.

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 ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL.

18

The following tables summarize changes in the primary segments of the ALL for the three and six month periods ending March 31, 2014:

	Real Estate Loans								Commercial Loans		Obligations of States and Political Subdivisions		Home Equity Loans and Lines of Credit		Other Loans			Unallocated		Total
	Residential			Construction		Commercial
ALL balance at December 31, 2013	$	5,903		$	26	$	1,011		$	330	$	106	$	491	$	22		$	480	$	8,369
Charge-offs		(536	)		—		(11	)		—		—		—		—			—		(547	)
Recoveries		1			—		83			1		—		—		5			—		90
Provision		552			—		(80	)		38		—		9		(1	)		232		750
ALL balance at March 31, 2014	$	5,920		$	26	$	1,003		$	369	$	106	$	500	$	26		$	712	$	8,662

	Real Estate Loans								Commercial Loans			Obligations of States and Political Subdivisions			Home Equity Loans and Lines of Credit			Other Loans			Unallocated			Total
	Residential			Construction		Commercial
ALL balance at December 31, 2012	$	5,549		$	8	$	784		$	384		$	116		$	377		$	133		$	204		$	7,555
Charge-offs		(598	)		—		(108	)		—			—			(32	)		(6	)		—			(744	)
Recoveries		4			—		1			0			—			5			—			—			10
Provision		836			20		160			(34	)		(10	)		146			(108	)		(160	)		850
ALL balance at March 31, 2013	$	5,791		$	28	$	837		$	350		$	106		$	496		$	19		$	44		$	7,671

	Real Estate Loans								Commercial Loans			Obligations of States and Political Subdivisions			Home Equity Loans and Lines of Credit			Other Loans			Unallocated		Total
	Residential			Construction		Commercial
ALL balance at September 30, 2013	$	5,787		$	20	$	946		$	337		$	130		$	430		$	21		$	393	$	8,064
Charge-offs		(923	)		—		(50	)		(48	)		—			(63	)		—			—		(1,084	)
Recoveries		78			—		83			12			—			—			9			—		182
Provision		978			6		24			68			(24	)		133			(4	)		319		1,500
ALL balance at March 31, 2014	$	5,920		$	26	$	1,003		$	369		$	106		$	500		$	26		$	712	$	8,662

	Real Estate Loans									Commercial Loans			Obligations of States and Political Subdivisions			Home Equity Loans and Lines of Credit			Other Loans			Unallocated			Total
	Residential			Construction			Commercial
ALL balance at September 30, 2012	$	5,401		$	29		$	699		$	474		$	127		$	499		$	22		$	51		$	7,302
Charge-offs		(1,243	)		—			(214	)		0			—			(67	)		(6	)		—			(1,530	)
Recoveries		41			0			2			0			0			6			0			0			49
Provision		1,592			(1	)		350			(124	)		(21	)		58			3			(7	)		1,850
ALL balance at March 31, 2013	$	5,791		$	28		$	837		$	350		$	106		$	496		$	19		$	44		$	7,671

19

The following table summarizes the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of March 31, 2014 (in thousands):

	Real Estate Loans						Commercial Loans		Obligations of States and Political Subdivisions		Home Equity Loans and Lines of Credit		Other Loans		Unallocated		Total
	Residential		Construction		Commercial
Individually evaluated for impairment	$	618	$	—	$	263	$	—	$	—	$	38	$	—	$	—	$	919
Collectively evaluated for impairment		5,302		26		740		369		106		462		26		712		7,743
ALL balance at March 31, 2014	$	5,920	$	26	$	1,003	$	369	$	106	$	500	$	26	$	712	$	8,662

	Real Estate Loans						Commercial Loans		Obligations of States and Political Subdivisions		Home Equity Loans and Lines of Credit		Other Loans		Unallocated		Total
	Residential		Construction		Commercial
Individually evaluated for impairment	$	518	$	—	$	301	$	—	$	—	$	—	$	—	$	—	$	819
Collectively evaluated for impairment		5,269		20		645		337		130		430		21		393		7,245
ALL balance at September 30, 2013	$	5,787	$	20	$	946	$	337	$	130	$	430	$	21	$	393	$	8,064

The allowance for loan losses is based on estimates, and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. The Company allocated increased provisions to the residential real estate, commercial loans, home equity loans and lines of credit segments for the six month period ending March 31, 2014 due to increased charge off activity and impairment evaluations in those segments. Despite the above allocations, the allowance for loan losses is general in nature and is available to absorb losses from any loan segment.

20

The following is a summary of troubled debt restructuring granted during the three and six months ended March 31, 2014 and 2013.

	For the Three Months Ended March 31, 2014
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		3	$	473	$	473
Construction		—		—		—
Commercial		1		197		197
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—
Total		4	$	670	$	670

Of the four new troubled debt restructurings granted for the three months ended March 31, 2014, three loans totaling $473,000 were granted terms and rate concessions and one loan totaling $197,000 was granted terms concessions.

	For the Three Months Ended March 31, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		3	$	471	$	471
Construction		—		—		—
Commercial		—		—		—
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—
Total		3	$	471	$	471

Of the three new troubled debt restructurings granted for the three months ended March 31, 2013, one loan totaling $397,000 was granted terms and rate concessions and two loans totaling $74,000 were granted terms concessions.

	For the Six Months Ended March 31, 2014
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		7	$	1,066	$	1,066
Construction		—		—		—
Commercial		1		197		197
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—
Total		8	$	1,263	$	1,263

21

Of the eight new troubled debt restructurings granted for the six months ended March 31, 2014, five loans totaling $604,000 were granted terms and rate concessions and three loans totaling $660,000 were granted terms concessions.

	For the Six Months Ended March 31, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		4	$	600	$	604
Construction		—		—		—
Commercial		—		—		—
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—
Total		4	$	600	$	604

Of the four new troubled debt restructurings granted for the six months ended March 31, 2013, two loans totaling $527,000 were granted terms and rate concessions and two loans totaling $74,000 were granted terms concessions. The following is a summary of troubled debt restructurings that have subsequently defaulted within one year of modification, (in thousands).

	For the Three Months Ended March 31,
	2014				2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential	$	—	$	—	$	1	$	77
Construction		—		—		—		—
Commercial		—		—		—		—
Commercial		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—
Home equity loans and lines of credit		—		—		1		5
Other		—		—		—		—
Total	$	—	$	—	$	2	$	82

	For the Six Months Ended March 31,
	2014				2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential	$	—	$	—	$	1	$	77
Construction		—		—		—		—
Commercial		—		—		—		—
Commercial		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—
Home equity loans and lines of credit		—		—		1		5
Other		—		—		—		—
Total	$	—	$	—	$	2	$	82

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8. Deposits

Deposits consist of the following major classifications (in thousands):

	March 31, 2014		September 30, 2013
Non-interest bearing demand accounts	$	62,262	$	58,795
NOW accounts		98,946		99,857
Money market accounts		141,409		138,049
Savings and club accounts		119,380		110,189
Certificates of deposit		576,433		634,169
Total	$	998,430	$	1,041,059

9. Net Periodic Benefit Cost-Defined Benefit Plan

For a detailed disclosure on the Bank’s pension and employee benefits plans, please refer to Note 13 of the Company’s Consolidated Financial Statements for the year ended September 30, 2013 included in the Company’s Form 10-K.

The following table comprises the components of net periodic benefit cost for the periods ended (in thousands):

	Three Months Ended March 31,						Six Months Ended March 31,
	2014			2013			2014			2013
Service Cost	$	145		$	175		$	289		$	351
Interest Cost		190			179			381			358
Expected return on plan assets		(291	)		(259	)		(581	)		(517	)
Amortization of unrecognized loss		7			99			14			196
Net periodic benefit cost	$	51		$	194		$	103		$	388

The Bank plans to contribute $550,000 to its pension plan in 2014.

10. Equity Incentive Plan

The Company maintains the ESSA Bancorp, Inc. 2007 Equity Incentive Plan (the “Plan”). The Plan provides for a total of 2,377,326 shares of common stock for issuance upon the grant or exercise of awards. Of the shares available under the Plan, 1,698,090 may be issued in connection with the exercise of stock options and 679,236 may be issued as restricted stock. The Plan allows for the granting of non-qualified stock options (“NSOs”), incentive stock options (“ISOs”), and restricted stock. Options are granted at no less than the fair value of the Company’s common stock on the date of the grant.

Certain officers, employees and outside directors were granted in aggregate 1,140,469 NSOs; 317,910 ISOs; and 590,320 shares of restricted stock on May 23, 2008. Certain officers were granted in aggregate 30,000 shares of restricted stock on April 1, 2013. In accordance with generally accepted accounting principles, the Company expenses the fair value of all share-based compensation grants over the requisite service periods.

The Company classifies share-based compensation for employees and outside directors within “Compensation and employee benefits” in the consolidated statement of income to correspond with the same line item as compensation paid. Additionally, generally accepted accounting principles require the Company to report: (1) the expense associated with the grants as an adjustment to operating cash flows and (2) any benefits of realized tax deductions in excess of previously recognized tax benefits on compensation expense as a financing cash flow.

Stock options vest over a five-year service period and expire ten years after grant date. The Company recognizes compensation expense for the fair values of these awards, which vest on a straight-line basis over the requisite service period of the awards.

The 2008 restricted shares vest over a five-year service period. The 2013 restricted stock shares vest over an 18-month service period. The product of the number of shares granted and the grant date market price of the Company’s common stock determines the fair value of restricted shares under the Company’s restricted stock plan. The Company recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period for the entire award.

23

For the six months ended March 31, 2014 and 2013, the Company recorded $122,000 and $1.1 million of share-based compensation expense, respectively, comprised of restricted stock expense of $122,000 for the March 31, 2014 period and stock option expense of $344,000 and restricted stock expense of $711,000 for the March 31, 2013 period. Expected future compensation expense relating to the 13,334 restricted shares at March 31, 2014, is $97,000 over the remaining vesting period of 0.5 years.

The following is a summary of the Company’s stock option activity and related information for its option grants for the six month period ended March 31, 2014.

	Number of Stock Options		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding, September 30, 2013		1,458,379	$	12.35		4.67	$	—
Granted		—		—		—		—
Exercised		—		—		—		—
Forfeited		—		—		—		—
Outstanding, March 31, 2014		1,458,379	$	12.35		4.17	$	—
Exercisable at March 31, 2014		1,458,379	$	12.35		4.17	$	—

The following is a summary of the status of the Company’s restricted stock as of March 31, 2014, and changes therein during the six month period then ended:

	Number of Restricted Stock		Weighted- average Grant Date Fair Value
Nonvested at September 30, 2013		14,995	$	10.94
Granted		—		—
Vested		1,661		10.94
Forfeited		—		—
Nonvested at March 31, 2014		13,334	$	10.94

11. Fair Value Measurement

The following disclosures show the hierarchal disclosure framework associated within the level of pricing observations utilized in measuring assets and liabilities at fair value. The definition of fair value maintains the exchange price notion in earlier definitions of fair value but focuses on the exit price of the asset or liability. The exit price is the price that would be received to sell the asset or paid to transfer the liability adjusted for certain inherent risks and restrictions. Expanded disclosures are also required about the use of fair value to measure assets and liabilities.

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The following table presents information about the Company’s securities, other real estate owned and impaired loans measured at fair value as of March 31, 2014 and September 30, 2013 and indicates the fair value hierarchy of the valuation techniques utilized by the Bank to determine such fair value:

	Fair Value Measurement at March 31, 2014
Fair Value Measurements Utilized for the Company’s Financial Assets (in thousands):	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balances as of     March 31, 2014
Securities available-for-sale measured on a recurring basis
Mortgage backed securities	$	—	$	217,249	$	—	$	217,249
Obligations of states and political subdivisions		—		23,106		—		23,106
U.S. government agencies		—		47,841		—		47,841
Corporate obligations		—		13,300		—		13,300
Trust-preferred securities		—		3,716		1,830		5,546
Other debt securities		—		5,262		—		5,262
Equity securities-financial services		2,025		—		—		2,025
Total debt and equity securities	$	2,025	$	310,474	$	1,830	$	314,329
Foreclosed real estate owned measured on a non-recurring basis	$	—	$	—	$	2,168	$	2,168
Impaired loans measured on a non-recurring basis	$	—	$	—	$	37,610	$	37,610

	Fair Value Measurement at September 30, 2013
Fair Value Measurements Utilized for the Company’s Financial Assets (in thousands):	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balances as of September 30, 2013
Securities available-for-sale measured on a recurring basis
Mortgage backed securities	$	—	$	217,837	$	—	$	217,837
Obligations of states and political subdivisions		—		23,909		—		23,909
U.S. government agencies		—		52,520		—		52,520
Corporate obligations		—		12,773		—		12,773
Trust-preferred securities		—		3,614		1,800		5,414
Other debt securities		—		1,154		—		1,154
Equity securities-financial services		2,015		—		—		2,015
Total debt and equity securities	$	2,015	$	311,807	$	1,800	$	315,622
Foreclosed real estate owned measured on a non-recurring basis	$	—	$	—	$	2,111	$	2,111
Impaired loans measured on a non-recurring basis	$	—	$	—	$	36,407	$	36,407

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The following table presents a summary of changes in the fair value of the Company’s Level III investments for the periods ended March 31, 2014 and March 31, 2013.

	Fair Value Measurement Using Significant Unobservable Inputs (Level III)
	Three months ended
	March 31, 2014			March 31, 2013
Beginning balance	$	1,840		$	1,760
Purchases, sales, issuances, settlements, net		—			—
Total unrealized gain:
Included in earnings		—
Included in other comprehensive income		(10	)		—
Transfers in and/or out of Level III		—			—
	$	1,830		$	1,760

	Fair Value Measurement Using Significant Unobservable Inputs (Level III)
	Six months ended
	March 31, 2014		March 31, 2013
Beginning balance	$	1,800	$	1,740
Purchases, sales, issuances, settlements, net		—		—
Total unrealized gain:
Included in earnings		—		—
Included in other comprehensive income		30		20
Transfers in and/or out of Level III		—		—
	$	1,830	$	1,760

Each financial asset and liability is identified as having been valued according to a specified level of input, 1, 2 or 3. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Bank has the ability to access at the measurement date. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset, either directly or indirectly. Level 2 inputs include quoted prices for similar assets in active markets, and inputs other than quoted prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy, within which the fair value measurement in its entirety falls, has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset.

The measurement of fair value should be consistent with one of the following valuation techniques: market approach, income approach, and/or cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). For example, valuation techniques consistent with the market approach often use market multiples derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment, considering factors specific to the measurement (qualitative and quantitative). Valuation techniques consistent with the market approach include matrix pricing. Matrix pricing is a mathematical technique used principally to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on a security’s relationship to other benchmark quoted securities. Most of the securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quoted market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Securities reported at fair value utilizing Level 1 inputs are limited to actively traded equity securities whose market price is readily available from the New York Stock Exchange or the NASDAQ exchange. Foreclosed real estate is measured at fair value, less cost to sell at the date of foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less cost to sell. Income and

26

expenses from operations and changes in valuation allowance are included in the net expenses from foreclosed real estate. Impaired loans are reported at fair value utilizing level three inputs. For these loans, a review of the collateral is conducted and an appropriate allowance for loan losses is allocated to the loan. At March 31, 2014, 233 impaired loans with a carrying value of $38.5 million were reduced by specific valuation allowance totaling $919,000 resulting in a net fair value of $37.6 million based on Level 3 inputs. At September 30, 2013, 233 impaired loans with a carrying value of $36.4 million were reduced by a specific valuation totaling $819,000 resulting in a net fair value of $37.6 million based on Level 3 inputs.

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

	Quantitative Information about Level 3 Fair Value Measurements
(unaudited, in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
March 31, 2014:
Impaired loans		37,610	Appraisal of collateral(1)	Appraisal adjustments(2)	0% to 30% (23.4%)
Foreclosed real estate owned		2,168	Appraisal of collateral(1), (3)	Appraisal adjustments(2)	20% to 40% (22.0%)

	Quantitative Information about Level 3 Fair Value Measurements
(unaudited, in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
September 30, 2013:
Impaired loans		36,407	Appraisal of collateral(1)	Appraisal adjustments(2)	0% to 30% (23.5%)
Foreclosed real estate owned		2,111	Appraisal of collateral(1), (3)	Appraisal adjustments(2)	0% to 30% (20.4%)

(1) Fair value is generally determined through independent appraisals of 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 of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

The fair values presented represent the Company’s best estimate of fair value using the methodologies discussed below.

27

Disclosures about Fair Value of Financial Instruments

The fair values presented represent the Company’s best estimate of fair value using the methodologies discussed below.

	March 31, 2014
	Carrying Value		Level I		Level II		Level III		Total Fair Value
Financial assets:
Cash and cash equivalents	$	40,662	$	40,662	$	—	$	—	$	40,662
Certificates of deposit		1,767		—		1,767		—		1,767
Investment and mortgage backed securities available for sale		314,329		2,025		310,474		1,830		314,329
Loans receivable, net		906,356		—		—		924,826		924,826
Accrued interest receivable		4,191		4,191		—		—		4,191
FHLB stock		10,353		10,353		—		—		10,353
Mortgage servicing rights		363		—		—		363		363
Bank owned life insurance		29,250		29,250		—		—		29,250
Financial liabilities:
Deposits	$	998,430	$	421,997	$	—	$	579,601		1,001,598
Short-term borrowings		38,000		38,000		—		—		38,000
Other borrowings		145,550		—		—		145,673		145,673
Advances by borrowers for taxes and insurance		8,870		8,870		—		—		8,870
Accrued interest payable		809		809		—		—		809

	September 30, 2013
	Carrying Value		Level I		Level II		Level III		Total Fair Value
Financial assets:
Cash and cash equivalents	$	26,648	$	26,648	$	—	$	—	$	26,648
Certificates of deposit		1,767		—		1,767		—		1,767
Investment and mortgage backed securities available for sale		315,622		2,015		311,807		1,800		315,622
Loans receivable, net		928,230		—		—		951,120		951,120
Accrued interest receivable		4,413		4,413		—		—		4,413
FHLB stock		9,415		9,415		—		—		9,415
Mortgage servicing rights		382		—		—		382		382
Bank owned life insurance		28,797		28,797		—		—		28,797
Financial liabilities:
Deposits	$	1,041,059	$	406,890	$	—	$	638,510		1,045,400
Short-term borrowings		23,000		23,000		—		—		23,000
Other borrowings		129,260		—		—		124,504		124,504
Advances by borrowers for taxes and insurance		4,962		4,962		—		—		4,962
Accrued interest payable		833		833		—		—		833

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Financial instruments are defined as cash, evidence of an ownership interest in an entity, or a contract which creates an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms.

Fair value is defined as the amount at which a financial instrument could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale. If a quoted market price is available for a financial instrument, the fair value would be calculated based upon the market price per trading unit of the instrument.

If no readily available market exists, the fair value for financial instruments should be based upon management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses, and other factors as determined through various option pricing formulas or simulation modeling.

As many of these assumptions result from judgments made by management based upon estimates which are inherently uncertain, the resulting values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition, changes in the assumptions on which the values are based may have a significant impact on the resulting estimated values.

As certain assets and liabilities, such as deferred tax assets, premises and equipment, and many other operational elements of the Bank, are not considered financial instruments but have value, this fair value of financial instruments would not represent the full market value of the Company.

The Company employed simulation modeling in determining the fair value of financial instruments for which quoted market prices were not available based upon the following assumptions:

Cash and Cash Equivalents, Accrued Interest Receivable, Short-Term Borrowings, Advances by Borrowers for Taxes and Insurance, and Accrued Interest Payable

The fair value approximates the current book value.

Bank-Owned Life Insurance

The fair value is equal to the cash surrender value of the Bank-owned life insurance.

Investment and Mortgage-Backed Securities Available for Sale and FHLB Stock

The fair value of investment and mortgage-backed securities available for sale is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities. Since the FHLB stock is not actively traded on a secondary market and held exclusively by member financial institutions, the fair market value approximates the carrying amount.

Loans Receivable

The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.

Mortgage Servicing Rights

The Company utilizes a third party provider to estimate the fair value of certain loan servicing rights. Fair value for the purpose of this measurement is defined as the amount at which the asset could be exchanged in a current transaction between willing parties, other than in a forced liquidation.

Deposit Liabilities

The fair values disclosed for demand, savings, and money market deposit accounts are valued at the amount payable on demand as of quarter-end. Fair values for time deposits are estimated using a discounted cash flow calculation that applies contractual costs currently being offered in the existing portfolio to current market rates being offered for deposits of similar remaining maturities.

Other Borrowings

Fair values for other borrowings are estimated using a discounted cash flow calculation that applies contractual costs currently being offered in the existing portfolio to current market rates being offered for other borrowings of similar remaining maturities.

Commitments to Extend Credit

These financial instruments are generally not subject to sale, and fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, are not considered material for disclosure.

29

12. Accumulated Other Comprehensive Income

The activity in accumulated other comprehensive income for the three and six months ended March 31, 2014 and 2013 is as follows:

	Accumulated Other Comprehensive Income/(Loss)
	Defined Benefit Pension Plan			Unrealized Gains (Losses) on Securities Available for Sale			Total
Balance at December 31, 2013	$	(1,301	)	$	(1,274	)	$	(2,575	)
Other comprehensive income before reclassifications		—			880			880
Amounts reclassified from accumulated other comprehensive income		5			(156	)		(151	)
Period change		5			724			729
Balance at March 31, 2014	$	(1,296	)	$	(550	)	$	(1,846	)
Balance at December 31, 2012	$	(4,385	)	$	5,573		$	1,188
Other comprehensive loss before reclassifications		—			(625	)		(625	)
Amounts reclassified from accumulated other comprehensive income		67			(467	)		(400	)
Period change		67			(1,092	)		(1,025	)
Balance at March 31, 2013	$	(4,318	)	$	4,481		$	163

	Accumulated Other Comprehensive Income/(Loss)
	Defined Benefit Pension Plan			Unrealized Gains (Losses) on Securities Available for Sale			Total
Balance at September 30, 2013	$	(1,306	)	$	71		$	(1,235	)
Other comprehensive loss before reclassifications		—			(464	)		(464	)
Amounts reclassified from accumulated other comprehensive income		9			(156	)		(147	)
Period change		9			(620	)		(611	)
Balance at March 31, 2014	$	(1,297	)	$	(549	)	$	(1,846	)
Balance at September 30, 2012	$	(4,450	)	$	6,208		$	1,758
Other comprehensive loss before reclassifications		—			(1,239	)		(1,239	)
Amounts reclassified from accumulated other comprehensive income		131			(487	)		(356	)
Period change		131			(1,726	)		(1,595	)
Balance at March 31, 2013	$	(4,319	)	$	4,482		$	163

30

	Amount Reclassified from Accumulated Other Comprehensive Income
	Accumulated Other Comprehensive Income for the Three Months Ended March 31,						Affected Line Item in the Consolidated Statement of Income
	2014			2013
Securities available for sale:
Net securities gains reclassified into earnings	$	(236	)	$	(708	)	Gain on sale of investments, net
Related income tax expense		80			241		Provision for income taxes
Net effect on accumulated other comprehensive income for the period		(156	)		(467	)	Net of tax
Defined benefit pension plan:
Amortization of net loss and prior service costs		7			99		Compensation and employee benefits
Related income tax expense	$	(2	)	$	(32	)	Provision for income taxes
Net effect on accumulated other		5			67		Net of tax
Total reclassification for the period	$	(151	)	$	(400	)	Net of tax

	Amount Reclassified from Accumulated Other Comprehensive Income
	Accumulated Other Comprehensive Income for the Six Months Ended March 31,						Affected Line Item in the Consolidated Statement of Income
	2014			2013
Securities available for sale:
Net securities gains reclassified into earnings	$	(236	)	$	(738	)	Gain on sale of investments, net
Related income tax expense		80			251		Provision for income taxes
Net effect on accumulated other comprehensive income for the period		(156	)		(487	)	Net of tax
Defined benefit pension plan:
Amortization of net loss and prior service costs		14			196		Compensation and employee benefits
Related income tax expense	$	(5	)	$	(65	)	Provision for income taxes
Net effect on accumulated other		9			131		Net of tax
Total reclassification for the period	$	(147	)	$	(356	)	Net of tax

13. ACQUISITION OF FNCB BRANCH

On January 24, 2014, the Company closed on a purchase transaction pursuant to which ESSA Bancorp, Inc. acquired a branch facility, customer deposits, and loans of First National Community Bank (FNCB), the subsidiary of First National Community Bancorp, Inc., in a cash transaction. The acquired branch is located in the Monroe County, Pennsylvania market. Under the terms of the agreement, the Company acquired the all of the branch facilities, customer deposits, and loans of FNCB and received net cash of $4.6 million.

The acquired assets and assumed liabilities were measured at fair values. Management made significant estimates and exercised significant judgment in accounting for the acquisition. Management measured loan fair values based on loan file reviews (including borrower financial statements or tax returns), appraised collateral values, expected cash flows and historical loss factors of FNCB. Real estate acquired through foreclosure was primarily valued based on appraised collateral values.

The business combination resulted in the acquisition of loans without evidence of credit quality deterioration. FNCB’s loans were fair valued by discounting both expected principal and interest cash flows using an observable discount rate for similar instruments that a market participant would consider in determining fair value. Additionally, consideration was given to management’s best estimates of default rates and payment speeds. At acquisition, FNCB’s loan portfolio without evidence of deterioration totaled $1.0 million and was recorded at a fair value of $1.0 million.

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The following condensed statement reflects the values assigned to FNCB’s net assets as of the acquisitions date:

Net cash received	$	4,640
Net assets acquired:
Cash	$	11
Loans receivable and accrued interest receivable		1,033
Premises and equipment, net		1,626
Certificates of deposits		(3,069	)
Deposits other than certificates of deposits		(5,683	)
		6,082
Goodwill resulting from FNCB purchase	$	1,442

Supplemental pro forma financial information related to the FNCB acquisition has not been provided as it would be impracticable to do so. Historical financial information regarding the acquired branch is not accessible and thus the amounts would require estimates so significant as to render the disclosure irrelevant.

14. Subsequent Event

On April 4, 2014, the Company completed its acquisition of Franklin Security Bancorp, Inc. and its wholly owned subsidiary, Franklin Security Bank, through an all cash transaction valued at approximately $15.7 million. Franklin Security Bank had assets of approximately $218.8 million at closing, with total loans of approximately $155.3 million and total deposits of approximately $162.1 million.

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

Forward Looking Statements

This quarterly report contains forward-looking statements, which can be identified by the use of such words as estimate, project, believe, intend, anticipate, plan, seek, expect and similar expressions. These forward-looking statements include:

• statements of our goals, intentions and expectations;

• statements regarding our business plans and prospects and growth and operating strategies;

• statements regarding the asset quality of our loan and investment portfolios; and

• estimates of our risks and future costs and benefits.

By identifying these forward-looking statements for you in this manner, we are alerting you to the possibility that our actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Important factors that could cause our actual results and financial condition to differ from those indicated in the forward-looking statements include, among others, those discussed under “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K and Part II, Item 1A of this Report on Form 10-Q, as well as the following factors:

• significantly increased competition among depository and other financial institutions;

• inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments;

• general economic conditions, either nationally or in our market areas, that are worse than expected;

• adverse changes in the securities markets;

• legislative or regulatory changes that adversely affect our business;

• our ability to enter new markets successfully and take advantage of growth opportunities, and the possible short-term dilutive effect of potential acquisitions or de novo branches, if any;

• changes in consumer spending, borrowing and savings habits;

• changes in accounting policies and practices, as may be adopted by the bank regulatory agencies and the Financial Accounting Standards Board; and

• changes in our organization, compensation and benefit plans.

These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

Comparison of Financial Condition at March 31, 2014 and September 30, 2013

Total Assets. Total assets decreased by $6.9 million, or 0.50%, to $1,365.4 million at March 31, 2014 from $1,372.3 million at September 30, 2013. Decreases in loans receivable were offset, in part, by an increase in total cash and cash equivalents.

Total Cash and Cash Equivalents. Total cash and cash equivalents increased $14.1 million, or 53.0%, to $40.7 million at March 31, 2014 from $26.6 million at September 30, 2013. This increase was primarily the result of the cash generated from the repayment of loans receivable from September 30, 2013 through March 31, 2014.

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Net Loans. Net loans decreased $21.9 million, or 2.4%, to $906.4 million at March 31, 2014 from $928.2 million at September 30, 2013. During this period, residential real estate loans outstanding decreased by $24.4 million to $662.2 million. Commercial real estate loans decreased $2.7 million to $156.7 million, home equity loans and lines of credit decreased $2.0 million to $40.0 million, and other loans decreased $87,000 to $2.3 million. These decreases were partially offset by increases in construction loans outstanding of $565,000 to $2.9 million, obligations of states and political subdivisions of $6.9 million to $40.3 million and commercial loans of $487,000 to $10.6 million.

Investment Securities Available for Sale. Investment securities available for sale decreased $1.3 million, or 0.41%, to $314.3 million at March 31, 2014 from $315.6 million at September 30, 2013. The decrease was due primarily to decreases in U.S. government agency securities of $4.7 million, offset in part, by an increase in other debt securities of $4.1 million.

Deposits. Deposits decreased $42.6 million, or 4.1%, to $998.4 million at March 31, 2014 from $1,041.1 million at September 30, 2013. At March 31, 2014 compared to September 30, 2013, certificate of deposit accounts decreased $57.7 million to $576.4 million, and NOW accounts decreased $911,000 to $98.9 million. These decreases were offset in part during the same period by an increase in non-interest bearing demand accounts of $3.5 million to $62.3 million, money market accounts of $3.4 million to $141.4 million and savings and club accounts of $9.2 million to $119.4 million. Included in the certificates of deposit at December 31, 2013 was a decrease in brokered certificates of $31.5 million to $201.8 million.

Borrowed Funds. Borrowed funds increased by $31.3 million, or 20.6%, to $183.6 million at March 31, 2014, from $152.3 million at September 30, 2013. The increase in borrowed funds was primarily due to increases in short term FHLBank Pittsburgh borrowings of $15.0 million and other borrowings of $16.3 million.

Stockholders’ Equity. Stockholders’ equity increased by $1.3 million, or 0.8%, to $167.7 million at March 31, 2014 from $166.5 million at September 30, 2013.

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Average Balance Sheets for the Three and Six Months Ended March 31, 2014 and 2013

The following tables set forth average balance sheets, average yields and costs, and certain other information for the periods indicated. All average balances are daily average balances, the yields set forth below include the effect of deferred fees and discounts and premiums that are amortized or accreted to interest income.

	For the Three Months Ended March 31,
	2014									2013
	Average Balance			Interest Income/ Expense			Yield/ Cost			Average Balance			Interest Income/ Expense			Yield/ Cost
	(dollars in thousands)
Interest-earning assets:
Loans(1)	$	921,678		$	9,843			4.33	%	$	943,923		$	11,041			4.74	%
Investment securities
Taxable(2)		82,023			413			2.04	%		86,730			413			1.93	%
Exempt from federal income tax(2)(3)		13,706			72			3.23	%		14,244			73			3.15	%
Total investment securities		95,729			485			2.21	%		100,974			486			2.10	%
Mortgage-backed securities		218,860			1,110			2.06	%		226,911			1,145			2.04	%
Federal Home Loan Bank stock		10,179			81			3.23	%		17,828			16			0.36	%
Other		9,827			4			0.17	%		10,647			2			0.08	%
Total interest-earning assets		1,256,273			11,523			3.73	%		1,300,283			12,690			3.97	%
Allowance for loan losses		(8,337	)								(7,572	)
Noninterest-earning assets		107,682									100,293
Total assets	$	1,355,618								$	1,393,004
Interest-bearing liabilities:
NOW accounts	$	90,054			11			0.05	%	$	86,540			12			0.06	%
Money market accounts		139,703			62			0.18	%		142,646			75			0.21	%
Savings and club accounts		111,819			14			0.05	%		102,272			12			0.05	%
Certificates of deposit		590,813			1,819			1.25	%		590,621			1,749			1.20	%
Borrowed funds		177,706			679			1.55	%		219,953			958			1.77	%
Total interest-bearing liabilities		1,110,095			2,585			0.94	%		1,142,032			2,806			1.00	%
Non-interest bearing NOW accounts		60,611									56,126
Noninterest-bearing liabilities		16,302									19,149
Total liabilities		1,187,008									1,217,307
Equity		168,610									175,697
Total liabilities and equity	$	1,355,618								$	1,393,004
Net interest income				$	8,938								$	9,884
Interest rate spread								2.79	%								2.97	%
Net interest-earning assets	$	146,178								$	158,251
Net interest margin(4)								2.89	%								3.08	%
Average interest-earning assets to average interest-bearing liabilities					113.17	%								113.86	%

(1) Non-accruing loans are included in the outstanding loan balances.

(2) Available for sale securities are reported at fair value.

(3) Yields on tax exempt securities have been calculated on a fully tax equivalent basis assuming a tax rate of 34%.

(4) Represents the difference between interest earned and interest paid, divided by average total interest earning assets.

34

	For the Six Months Ended March 31,
	2014									2013
	Average Balance			Interest Income/ Expense			Yield/ Cost			Average Balance			Interest Income/ Expense			Yield/ Cost
	(dollars in thousands)
Interest-earning assets:
Loans(1)	$	925,160			20,366			4.41	%	$	948,506		$	23,278			4.92	%
Investment securities
Taxable(2)		84,579			839			1.99	%		91,758			836			1.83	%
Exempt from federal income tax(2)(3)		13,696			145			3.22	%		12,141			127			3.18	%
Total investment securities		98,275			984			2.16	%		103,899			963			1.99	%
Mortgage-backed securities		218,298			2,211			2.03	%		222,761			2,352			2.12	%
Federal Home Loan Bank stock		9,954			136			2.74	%		18,871			40			0.43	%
Other		8,908			8			0.18	%		8,152			7			0.17	%
Total interest-earning assets		1,260,595			23,705			3.78	%		1,302,189			26,640			4.11	%
Allowance for loan losses		(8,165	)								(7,490	)
Noninterest-earning assets		105,896									101,171
Total assets	$	1,358,326								$	1,395,870
Interest-bearing liabilities:
NOW accounts	$	90,306			22			0.05	%	$	90,978			25			0.06	%
Money market accounts		138,724			132			0.19	%		147,974			191			0.26	%
Savings and club accounts		109,593			28			0.05	%		101,482			25			0.05	%
Certificates of deposit		602,680			3,712			1.24	%		584,761			3,578			1.23	%
Borrowed funds		174,032			1,382			1.59	%		224,331			2,218			1.98	%
Total interest-bearing liabilities		1,115,335			5,276			0.95	%		1,149,526			6,037			1.05	%
Non-interest bearing NOW accounts		59,512									52,459
Noninterest-bearing liabilities		15,145									17,368
Total liabilities		1,189,992									1,219,353
Equity		168,334									176,517
Total liabilities and equity		1,358,326								$	1,395,870
Net interest income					18,429								$	20,603
Interest rate spread								2.83	%								3.06	%
Net interest-earning assets		145,260								$	152,663
Net interest margin(4)								2.93	%								3.17	%
Average interest-earning assets to average interest-bearing liabilities					113.02	%								113.28	%

(1) Non-accruing loans are included in the outstanding loan balances.

(2) Available for sale securities are reported at fair value.

(3) Yields on tax exempt securities have been calculated on a fully tax equivalent basis assuming a tax rate of 34%.

(4) Represents the difference between interest earned and interest paid, divided by average total interest earning assets.

35

Comparison of Operating Results for the Three Months Ended March 31, 2014 and March 31, 2013

Net Income. Net income decreased $538,000, or 26.4%, to $1.5 million for the three months ended March 31, 2014 compared to net income of $2.0 million for the comparable period in 2013. The decrease was due primarily to decreases in net interest income and noninterest income, offset in part by a decrease in noninterest expenses.

Net Interest Income. Net interest income decreased $946,000, or 9.6%, to $8.9 million for the three months ended March 31, 2014 from $9.9 million for the comparable period in 2013. The decrease was primarily attributable to a decrease in the Company’s interest rate spread to 2.79% for the three months ended March 31, 2014, from 2.97% for the comparable period in 2013, along with a decrease of $12.1 million in the Company’s average net earnings assets.

Interest Income. Interest income decreased $1.2 million, or 9.2%, to $11.5 million for the three months ended March 31, 2014 from $12.7 million for the comparable 2013 period. The decrease resulted primarily from a decline in the yield on interest earning assets along with a decrease in interest earning assets. Average interest earning assets decreased $44.0 million and the average yield on interest earning assets decreased 24 basis points. The average yield on interest earning assets was 3.73% for the three months ended March 31, 2014, as compared to 3.97% for the comparable 2013 period. Loans decreased on average $22.2 million between the two periods. In addition, average investment securities decreased $5.2 million, mortgage-backed securities decreased $8.1 million, Federal Home Loan Bank stock decreased $7.6 million and other interest earning assets decreased $820,000. Interest income for the three months ended March 31, 2014 included approximately $222,000 of net accretion of fair market value adjustments for credit and yield applied to First Star loans compared to $653,000 of accretion and recapture for the comparable 2013 period.

Interest Expense. Interest expense decreased $222,000, or 7.9%, to $2.6 million for the three months ended March 31, 2014 from $2.8 million for the comparable 2013 period. The decrease resulted from a six basis point decrease in the overall cost of interest bearing liabilities to 0.94% for the three months ended March 31, 2014 from 1.00% for the comparable 2013 period, along with a $31.9 million decrease in average interest-bearing liabilities. A decline in the yield on borrowed funds to 1.55% at March 31, 2014 from 1.77% for the comparable 2013 period along with a $42.2 million decrease in average borrowed funds was the primary reason for the decrease in interest expense.

Provision for Loan Losses. In evaluating the level of the allowance for loan losses, management considers historical loss experience, the types of loans and the amount of loans in the loan portfolio, adverse situations that may affect a borrower’s ability to repay, the estimated value of any underlying collateral, peer group information and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are subject to interpretation and revision as more information becomes available or as future events occur. After an evaluation of these factors, management made a provision for loan losses of $750,000 for the three month period ended March 31, 2014 as compared to $850,000 for the three month period ended March 31, 2013. The allowance for loan losses was $8.7 million, or 0.95% of loans outstanding, at March 31, 2014, compared to $8.1 million, or 0.86% of loans outstanding at September 30, 2013.

Non-interest Income. Non-interest income decreased $706,000, or 28.7%, to $1.8 million for the three months ended March 31, 2014 from $2.5 million for the comparable period in 2013. The primary reasons for the decrease were decreases in gain on sale of investments, net of $472,000 and service fees on loan accounts of $164,000 during the 2014 period.

Non-interest Expense. Non-interest expense decreased $906,000, or 10.3%, to $7.9 million for the three months ended March 31, 2014 from $8.8 million for the comparable period in 2013. The primary reasons for the decrease were decreases in compensation and employee benefits of $711,000, and other expenses of $166,000. Compensation and employee benefits declined due to decreases in the cost of the Company’s stock based incentive plan.

Income Taxes. Income tax expense decreased $108,000 to $554,000 for the three months ended March 31, 2014 from $662,000 for the comparable 2013 period. The decrease was primarily a result of the decrease in income before taxes of $646,000 for the three months ended March 31, 2014. The effective tax rate was 26.9% for the three months ended March 31, 2014, compared to 24.5% for the 2013 period.

Comparison of Operating Results for the Six Months Ended March 31, 2014 and March 31, 2013

Net Income. Net income decreased $1.4 million, or 28.7%, to $3.5 million for the six months ended March 31, 2014 compared to net income of $4.9 million for the comparable period in 2013. The decrease was due primarily to decreases in net interest income and noninterest income, offset in part by a decrease in noninterest expenses.

Net Interest Income. Net interest income decreased $2.2 million, or 10.7%, to $18.4 million for the six months ended March 31, 2014 from $20.6 million for the comparable period in 2013. The decrease was primarily attributable to a decrease in the Company’s interest rate spread to 2.83% for the six months ended March 31, 2014, from 3.06% for the comparable period in 2013, along with a decrease of $7.4 million in the Company’s average net earnings assets.

36

Interest Income. Interest income decreased $2.9 million, or 11.0%, to $23.7 million for the six months ended March 31, 2014 from $26.6 million for the comparable 2013 period. The decrease resulted primarily from a decline in the yield on interest earning assets along with a decrease in interest earning assets. Average interest earning assets decreased $41.6 million and the average yield on interest earning assets decreased 33 basis points. The average yield on interest earning assets was 3.78% for the six months ended March 31, 2014, as compared to 4.11% for the comparable 2013 period. Loans decreased on average $23.3 million between the two periods. In addition, average investment securities decreased $5.6 million, mortgage-backed securities decreased $4.5 million, Federal Home Loan Bank stock decreased $8.9 million and other interest earning assets increased $756,000. Interest income for the six months ended March 31, 2014 included approximately $852,000 of net accretion of fair market value adjustments for credit and yield applied to First Star loans compared to $2.1 million of accretion and recapture for the comparable 2013 period.

Interest Expense. Interest expense decreased $762,000, or 12.6%, to $5.3 million for the six months ended March 31, 2014 from $6.0 million for the comparable 2013 period. The decrease resulted from a ten basis point decrease in the overall cost of interest bearing liabilities to 0.95% for the six months ended March 31, 2014 from 1.05% for the comparable 2013 period, along with a $34.2 million decrease in average interest-bearing liabilities. Average interest bearing liabilities decreased primarily from a decline in the cost of borrowings to 1.59% at March 31, 2014 from 1.98% for the comparable period in 2013 along with a decrease in average borrowed funds of $50.3 million to $174.0 million at March 31, 2014.

Provision for Loan Losses. In evaluating the level of the allowance for loan losses, management considers historical loss experience, the types of loans and the amount of loans in the loan portfolio, adverse situations that may affect a borrower’s ability to repay, the estimated value of any underlying collateral, peer group information and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are subject to interpretation and revision as more information becomes available or as future events occur. After an evaluation of these factors, management made a provision for loan losses of $1.5 million for the six month period ended March 31, 2014 as compared to $1.9 million for the six month period ended March 31, 2013. The allowance for loan losses was $8.7 million, or 0.95% of loans outstanding, at March 31, 2014, compared to $8.1 million, or 0.86% of loans outstanding at September 30, 2013.

Non-interest Income. Non-interest income decreased $1.1 million, or 24.4%, to $3.4 million for the six months ended March 31, 2014 from $4.5 million for the comparable period in 2013. The primary reasons for the decrease were decreases in gain on sale of loans, net of $415,000, gains on sale of investments net of $502,000 and service fees on deposit accounts of $208,000 during the 2014 period.

Non-interest Expense. Non-interest expense decreased $663,000, or 4.1%, to $15.6 million for the six months ended March 31, 2014 from $16.3 million for the comparable period in 2013. The primary reasons for the decrease were decreases in compensation and employee benefits of $959,000, and other expenses of $311,000. These decreases were partially offset by increases in the cost to liquidate foreclosed real estate of $347,000 and merger related costs of $346,000. Compensation and employee benefits declined due to decreases in the cost of the Company’s stock based incentive plan.

Income Taxes. Income tax expense decreased $853,000 to $1.2 million for the six months ended March 31, 2014 from $2.0 million for the comparable 2013 period. The decrease was primarily a result of the decrease in income before taxes of $2.3 million for the six months ended March 31, 2014. The effective tax rate was 25.02% for the six months ended March 31, 2014, compared to 29.14% for the 2013 period.

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Non-Performing Assets

The following table provides information with respect to the Bank’s non-performing assets at the dates indicated. (Dollars in thousands)

	March 31, 2014			September 30, 2013
Non-performing assets:
Non-accruing loans	$	22,197		$	23,279
Troubled debt restructures		580			585
Total non-performing loans		22,777			23,864
Foreclosed real estate		2,168			2,111
Total non-performing assets	$	24,945		$	25,975
Ratio of non-performing loans to total loans		2.49	%		2.55	%
Ratio of non-performing loans to total assets		1.67	%		1.74	%
Ratio of non-performing assets to total assets		1.83	%		1.89	%
Ratio of allowance for loan losses to total loans		0.95	%		0.86	%

Loans are reviewed on a regular basis and are placed on non-accrual status when they become more than 90 days delinquent. When loans are placed on non-accrual status, unpaid accrued interest is fully reserved, and further income is recognized only to the extent received. Non-performing assets decreased $1.0 million to $24.9 million at March 31, 2014 from $26.0 million at September 30, 2013. Non-performing loans decreased $1.1 million to $22.8 million at March 31, 2014 from $23.9 million at September 30, 2013. The year to date increase was primarily due to a decrease of $2.1 million in nonperforming residential loans offset by a $1.0 million increase in nonperforming commercial loans. The number of nonperforming residential loans decreased to 87 at March 31, 2014, from 89 at September 30, 2013. The $22.2 million of non-accruing loans at March 31, 2014 included 87 residential loans with an aggregate outstanding balance of $8.8 million that were past due 90 or more days at March 31, 2014, 82 commercial and commercial real estate loans with aggregate outstanding balances of $13.0 million and 20 consumer loans with aggregate balances of $390,000. Within the residential loan balance are $1.7 million of loans less than 90 days past due. In the quarter ended March 31, 2014, the Company identified 14 residential loans which, although paying as agreed, have a high probability of default. Foreclosed real estate increased $57,000 to $2.2 million at March 31, 2014 from $2.1 million at September 30, 2013. Foreclosed real estate consists of 19 residential properties, two building lots and three commercial properties.

At March 31, 2014 the principal balance of troubled debt restructures was $7.3 million as compared to $7.8 million at September 30, 2013. Of the $7.3 million of troubled debt restructures at March 31, 2014, $3.07 million are performing loans and $3.6 million are non-accrual loans. An additional $580,000 of performing troubled debt restructures are classified as non-performing assets because they were non-performing assets at the time they were restructured.

Of the 53 loans that comprise our troubled debt restructures at March 31, 2014, no loans were granted a rate concession at a below market interest rate. Eighteen loans with balances totaling $2.6 million were granted market rate and terms concessions, no loans were granted an interest rate concession and 35 loans with balances totaling $4.7 million were granted term concessions.

As of March 31, 2014, troubled debt restructures were comprised of 39 residential loans totaling $5.5 million, 12 commercial and commercial real estate loans totaling $1.6 million, and two consumer (home equity loans, home equity lines and credit, and other) totaling $104,000.

For the three month period ended March 31, 2014, six loans totaling $1.0 million were removed from TDR status. Two loans for $97,000 were transferred to foreclosed real estate, and four loans totaling $777,000 completed 12 months of consecutive on time payments and two loans totaling $133,000 were paid off.

We have modified terms of loans that do not meet the definition of a TDR. The vast majority of such loans were rate modifications of residential first mortgage loans in lieu of refinancing. The non-TDR rate modifications were all performing loans when the rates were reset to current market rates. For the three months ended March 31, 2014, we modified five loans ($657,000) in this fashion. With regard to commercial loans, including commercial real estate loans, various non-troubled loans were modified, either for the purpose of a rate reduction to reflect current market rates (in lieu of a refinance) or the extension of a loan’s maturity date. In total, there were seven such loans in the three months ended March 31, 2014 with an aggregate balance of approximately $4.9 million. For the six months ended March 31, 2014, we modified 16 loans ($1.6 million) residential first mortgage loans. With regard to commercial loans, including commercial real estate loans, there were 15 such loans in the six months ended March 31, 2014 with an aggregate balance of approximately $12.0 million.

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Liquidity and Capital Resources

We maintain liquid assets at levels we consider adequate to meet both our short-term and long-term liquidity needs. We adjust our liquidity levels to fund deposit outflows, repay our borrowings and to fund loan commitments. We also adjust liquidity as appropriate to meet asset and liability management objectives.

Our primary sources of liquidity are deposits, prepayment and repayment of loans and mortgage-backed securities, maturities of investment securities and other short-term investments, and earnings and funds provided from operations, as well as access to FHLBank advances and other borrowing sources. While scheduled principal repayments on loans and mortgage-backed securities are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions, and rates offered by our competition. We set the interest rates on our deposits to maintain a desired level of total deposits.

A portion of our liquidity consists of cash and cash equivalents and borrowings, which are a product of our operating, investing and financing activities. At March 31, 2014, $40.7 million of our assets were invested in cash and cash equivalents. Our primary sources of cash are principal repayments on loans, proceeds from the maturities of investment securities, principal repayments of mortgage-backed securities and increases in deposit accounts. Short-term investment securities (maturing in one year or less) totaled $1.6 million at March 31, 2014. As of March 31, 2014, we had $178.6 million in borrowings outstanding from FHLBank Pittsburgh and $5.0 million in borrowings through repurchase agreements with other financial institutions. We have access to total FHLBank advances of up to approximately $584.4 million.

At March 31, 2014, we had $69.0 million in loan commitments outstanding, which included, in part, $10.5 million in undisbursed construction loans and land development loans, $31.8 million in unused home equity lines of credit, $16.1 million in commercial lines of credit and commitments to originate commercial loans, $4.5 million in performance standby letters of credit and $1.8 million in other unused commitments which are primarily to originate residential mortgage loans and multifamily loans. Certificates of deposit due within one year of March 31, 2014 totaled $194.2 million, or 33.5% of certificates of deposit. If these maturing deposits do not remain with us, we will be required to seek other sources of funds, including other certificates of deposit and borrowings. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the certificates of deposit due on or before December 31, 2014. We believe, however, based on past experience that a significant portion of our certificates of deposit will remain with us. We have the ability to attract and retain deposits by adjusting the interest rates offered

As reported in the Consolidated Statements of Cash Flows, our cash flows are classified for financial reporting purposes as operating, investing or financing cash flows. Net cash provided by operating activities was $7.2 million and $12.4 million for the six months ended March 31, 2014 and 2013, respectively. These amounts differ from our net income because of a variety of cash receipts and disbursements that did not affect net income for the respective periods. Net cash provided in investing activities was $25.0 million and $27.5 million for the three months ended March 31, 2014 and 2013, respectively, principally reflecting our loan and investment security activities. Deposit and borrowing cash flows have comprised most of our financing activities which resulted in net cash used of $18.2 million and $31.5 million for the six months ended March 31, 2014 and 2013, respectively.

Critical Accounting Policies

We consider accounting policies that require management to exercise significant judgment or discretion or make significant assumptions that have, or could have, a material impact on the carrying value of certain assets or on income, to be critical accounting policies. We consider the following to be our critical accounting policies:

Allowance for Loan Losses. The allowance for loan losses is the estimated amount considered necessary to cover credit losses inherent in the loan portfolio at the balance sheet date. The allowance is established through the provision for loan losses which is charged against income. In determining the allowance for loan losses, management makes significant estimates and has identified this policy as one of our most critical. The methodology for determining the allowance for loan losses is considered a critical accounting policy by management due to the high degree of judgment involved, the subjectivity of the assumptions utilized and the potential for changes in the economic environment that could result in changes to the amount of the recorded allowance for loan losses.

As a substantial amount of our loan portfolio is collateralized by real estate, appraisals of the underlying value of property securing loans and discounted cash flow valuations of properties are critical in determining the amount of the allowance required for specific loans. Assumptions for appraisals and discounted cash flow valuations are instrumental in determining the value of properties. Overly optimistic assumptions or negative changes to assumptions could significantly impact the valuation of a property securing a loan and the related allowance determined. The assumptions supporting such appraisals and discounted cash flow valuations are carefully reviewed by management to determine that the resulting values reasonably reflect amounts realizable on the related loans.

Management performs a quarterly evaluation of the adequacy of the allowance for loan losses. Consideration is given to a variety of factors in establishing this estimate including, but not limited to, current economic conditions, delinquency statistics, geographic and industry concentrations, the adequacy of the underlying collateral, the financial strength of the borrower, results of internal and external loan reviews and other relevant factors. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revision based on changes in economic and real estate market conditions.

The analysis of the allowance for loan losses has two components: specific and general allocations. Specific allocations are made for loans that are determined to be impaired. Impairment is measured by determining the present value of expected future cash flows or, for

39

collateral-dependent loans, the fair value of the collateral adjusted for market conditions and selling expenses. The general allocation is determined by segregating the remaining loans by type of loan, risk weighting (if applicable) and payment history. We also analyze historical loss experience, delinquency trends, general economic conditions and geographic and industry concentrations. This analysis establishes factors that are applied to the loan groups to determine the amount of the general allocations. Actual loan losses may be significantly more than the allowance for loan losses we have established which could have a material negative effect on our financial results.

Other-than-Temporary Investment Security Impairment. Securities are evaluated periodically to determine whether a decline in their value is other-than-temporary. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other-than-temporary. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospect for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other-than-temporary, the value of the security is reduced and a corresponding charge to earnings is recognized.

Deferred Income Taxes. We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. If current available information raises doubt as to the realization of the deferred tax assets, a valuation allowance is established. We consider the determination of this valuation allowance to be a critical accounting policy because of the need to exercise significant judgment in evaluating the amount and timing of recognition of deferred tax liabilities and assets, including projections of future taxable income. These judgments and estimates are reviewed on a continual basis as regulatory and business factors change. A valuation allowance for deferred tax assets may be required if the amount of taxes recoverable through loss carryback declines, or if we project lower levels of future taxable income. Such a valuation allowance would be established through a charge to income tax expense which would adversely affect our operating results.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements (as such term is defined in applicable Securities and Exchange Commission rules) that are reasonably likely to have a current or future material effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources.

Contractual Obligations

During the first six months of fiscal 2014, the Company’s contractual obligations did not change materially from those discussed in the Company’s Financial Statements for the year ended September 30, 2013.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The majority of our assets and liabilities are monetary in nature. Consequently, our most significant form of market risk is interest rate risk. Our assets, consisting primarily of mortgage loans, have longer maturities than our liabilities, consisting primarily of deposits and borrowings. As a result, a principal part of our business strategy is to manage interest rate risk and reduce the exposure of our net interest income to changes in market interest rates. Accordingly, our Board of Directors has approved guidelines for managing the interest rate risk inherent in our assets and liabilities, given our business strategy, operating environment, capital, liquidity and performance objectives. Senior management monitors the level of interest rate risk on a regular basis and the asset/liability committee meets quarterly to review our asset/liability policies and interest rate risk position.

We have sought to manage our interest rate risk in order to minimize the exposure of our earnings and capital to changes in interest rates. The net proceeds from the Company’s stock offering increased our capital and provided management with greater flexibility to manage our interest rate risk. In particular, management used the majority of the capital we received to increase our interest-earning assets. There have been no material changes in our interest rate risk since September 30, 2013.

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) and 15d-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 were no changes made in the Company’s internal controls over financial reporting (as defined by rule 13a-15(f) under the Securities Exchange Act of 1934) or in other factors that could significantly affect, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting during the period covered by this report.

40

Part II – Other Information

Item 1. Legal Proceedings

The Company and its subsidiaries are subject to various legal actions arising in the normal course of business. In the opinion of management, the resolution of these legal actions is not expected to have a material adverse effect on the Company’s financial condition or results of operations.

Item 1A. Risk Factors

There have been no material changes in the “Risk Factors” as disclosed in the Company’s response to Item 1A to Part 1 of Form 10-K for the year ended September 30, 2013 filed on December 16, 2013.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table presents a summary of the company’s share repurchases during the quarter ended March 31, 2014.

Company Purchases of Common Stock

Month Ending	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs		Maximum number of shares that may yet be purchased under the plans or programs
January 31, 2014		32,461	$	11.45		31,900		9,725
February 28, 2014		9,725		11.19		9,725		594,300
March 31, 2014		—		—		—		594,300
Total		42,186	$	11.39		41,625		594,300

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

41

Item 6. Exhibits

The following exhibits are either filed as part of this report or are incorporated herein by reference:

3.1	Certificate of Incorporation of ESSA Bancorp, Inc.*
3.2	Bylaws of ESSA Bancorp, Inc.*
4	Form of Common Stock Certificate of ESSA Bancorp, Inc.*
10.2	Amended and Restated Employment Agreement for Gary S. Olson**
10.3	Amended and Restated Employment Agreement for Robert S. Howes**
10.4	Amended and Restated Employment Agreement for Allan A. Muto**
10.5	Amended and Restated Employment Agreement for Diane K. Reimer**
10.6	Amended and Restated Employment Agreement for V. Gail Warner**
10.7	Supplemental Executive Retirement Plan**
10.8	Endorsement Split Dollar Life Insurance Agreement for Gary S. Olson**
10.9	Endorsement Split Dollar Life Insurance Agreement for Robert S. Howes**
21	Subsidiaries of Registrant*
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Statements of Condition; (ii) the Consolidated Statement of Income; (iii) the Consolidated Statement of Changes in Stockholder Equity; the Consolidated Statement of Cash Flows; and (iv) the Notes to Consolidated Financial Statements.

* Incorporated by reference to the Registration Statement on Form S-1 of ESSA Bancorp, Inc. (file no. 333-139157), originally filed with the Securities and Exchange Commission on December 7, 2006.

** Incorporated by reference to ESSA Bancorp, Inc.’s current report on Form 8-K filed with the Securities and Exchange Commission on October 6, 2008.

42

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.

	ESSA BANCORP, INC.
Date: May 12, 2014	/s/ Gary S. Olson
	Gary S. Olson
	President and Chief Executive Officer
Date: May 12, 2014	/s/ Allan A. Muto
	Allan A. Muto
	Executive Vice President and Chief Financial Officer

43

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Gary S. Olson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of ESSA Bancorp, Inc., a Pennsylvania corporation;

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 respects 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 15-15(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 financial 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:

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: May 12, 2014	/s/ Gary S. Olson
	Gary S. Olson
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Allan A. Muto, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of ESSA Bancorp, Inc., a Pennsylvania corporation;

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 respects 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 15-15(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 financial 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:

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: May 12, 2014	/s/ Allan A. Muto
	Allan A. Muto
	Executive Vice President and Chief Financial Officer

EX-32

Exhibit 32

Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

Gary S. Olson, Chief Executive Officer and President of ESSA Bancorp, Inc., a Pennsylvania corporation (the “Company”) and Allan A. Muto, Executive Vice President and Chief Financial Officer of the Company, each certify in his capacity as an officer of the Company that he has reviewed the quarterly report on Form 10-Q for the period ended March 31, 2014 (the “Report”) and that to the best of his knowledge:

1. the Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; 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: May 12, 2014	/s/ Gary S. Olson
	Gary S. Olson
	President and Chief Executive Officer
Date: May 12, 2014	/s/ Allan A. Muto
	Allan A. Muto
	Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Investment Securities - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Amortized Cost And Fair Value Debt Securities [Abstract]
Realized gross gains	$ 247,000	$ 725,000	$ 247,000	$ 756,000
Realized gross losses	11,000	17,000	11,000	18,000
Proceeds from the sale of investment securities	$ 8,100,000	$ 38,100,000	$ 8,100,000	$ 39,200,000

XML

Equity Incentive Plan - Additional Information (Detail) (USD $)	3 Months Ended	6 Months Ended			3 Months Ended	1 Months Ended		3 Months Ended	6 Months Ended	1 Months Ended
	Mar. 31, 2014	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014 Equity Incentive Plan [Member]	Mar. 31, 2014 Stock Option [Member]	Apr. 01, 2013 Restricted Stock [Member]	May 23, 2008 Restricted Stock [Member]	Mar. 31, 2014 Restricted Stock [Member]	Mar. 31, 2014 Restricted Stock [Member]	May 23, 2008 Non Qualified Stock Option [Member]	May 23, 2008 Incentive Stock Option [Member]
Compensation Related Costs Disclosure [Line Items]
Common stock issuance, grant				2,377,326
Number of available shares					1,698,090			679,236
Shares granted							590,320			1,140,469	317,910
Number of shares of restricted stock granted to officers						30,000
Option vesting period (in years)	5 years
Option expiration date (in years)	10 years
Restricted shares vesting period	5 years							18 months
Share-based compensation expense		$ 122,000	$ 1,055,000
Restricted stock expense		122,000	711,000
Stock option expense			344,000
Outstanding nonvested restricted stock								13,334	13,334
Expected future expense									$ 97,000
Remaining vesting period									6 months

XML

Loans Receivable, Net and Allowance for Loan Losses - Summary of Primary Segments of ALL (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended			3 Months Ended	6 Months Ended				3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended			3 Months Ended	6 Months Ended				3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended			3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013	Mar. 31, 2014 Residential Real Estate Loans [Member]	Mar. 31, 2013 Residential Real Estate Loans [Member]	Mar. 31, 2014 Residential Real Estate Loans [Member]	Mar. 31, 2013 Residential Real Estate Loans [Member]	Sep. 30, 2013 Residential Real Estate Loans [Member]	Mar. 31, 2013 Construction Real Estate Loans [Member]	Mar. 31, 2014 Construction Real Estate Loans [Member]	Mar. 31, 2013 Construction Real Estate Loans [Member]	Dec. 31, 2013 Construction Real Estate Loans [Member]	Sep. 30, 2013 Construction Real Estate Loans [Member]	Mar. 31, 2014 Commercial Real Estate Loans [Member]	Mar. 31, 2013 Commercial Real Estate Loans [Member]	Mar. 31, 2014 Commercial Real Estate Loans [Member]	Mar. 31, 2013 Commercial Real Estate Loans [Member]	Sep. 30, 2013 Commercial Real Estate Loans [Member]	Mar. 31, 2014 Commercial Loans [Member]	Mar. 31, 2013 Commercial Loans [Member]	Mar. 31, 2014 Commercial Loans [Member]	Mar. 31, 2013 Commercial Loans [Member]	Sep. 30, 2013 Commercial Loans [Member]	Mar. 31, 2013 Obligations of States and Political Subdivisions [Member]	Mar. 31, 2014 Obligations of States and Political Subdivisions [Member]	Mar. 31, 2013 Obligations of States and Political Subdivisions [Member]	Dec. 31, 2013 Obligations of States and Political Subdivisions [Member]	Sep. 30, 2013 Obligations of States and Political Subdivisions [Member]	Mar. 31, 2014 Home Equity Loans and Lines of Credit [Member]	Mar. 31, 2013 Home Equity Loans and Lines of Credit [Member]	Mar. 31, 2014 Home Equity Loans and Lines of Credit [Member]	Mar. 31, 2013 Home Equity Loans and Lines of Credit [Member]	Sep. 30, 2013 Home Equity Loans and Lines of Credit [Member]	Mar. 31, 2014 Other [Member]	Mar. 31, 2013 Other [Member]	Mar. 31, 2014 Other [Member]	Mar. 31, 2013 Other [Member]	Sep. 30, 2013 Other [Member]	Mar. 31, 2014 Unallocated [Member]	Mar. 31, 2013 Unallocated [Member]	Mar. 31, 2014 Unallocated [Member]	Mar. 31, 2013 Unallocated [Member]	Sep. 30, 2013 Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, Beginning of period	$ 8,369	$ 7,555	$ 8,064	$ 7,302		$ 5,903	$ 5,549	$ 5,787	$ 5,401		$ 8	$ 20	$ 29	$ 26		$ 1,011	$ 784	$ 946	$ 699		$ 330	$ 384	$ 337	$ 474		$ 116	$ 130	$ 127	$ 106		$ 491	$ 377	$ 430	$ 499		$ 22	$ 133	$ 21	$ 22		$ 480	$ 204	$ 393	$ 51
Charge-offs	(547)	(744)	(1,084)	(1,530)		(536)	(598)	(923)	(1,243)							(11)	(108)	(50)	(214)				(48)	0								(32)	(63)	(67)			(6)		(6)
Recoveries	90	10	182	49		1	4	78	41				0			83	1	83	2		1	0	12	0				0				5		6		5		9	0					0
Provision	750	850	1,500	1,850		552	836	978	1,592		20	6	(1)			(80)	160	24	350		38	(34)	68	(124)		(10)	(24)	(21)			9	146	133	58		(1)	(108)	(4)	3		232	(160)	319	(7)
Balance, End of period	8,662	7,671	8,662	7,671		5,920	5,791	5,920	5,791		28	26	28	26		1,003	837	1,003	837		369	350	369	350		106	106	106	106		500	496	500	496		26	19	26	19		712	44	712	44
Individually evaluated for impairment	919		919		819	618		618		518						263		263		301											38		38
Collectively evaluated for impairment	7,743		7,743		7,245	5,302		5,302		5,269		26			20	740		740		645	369		369		337		106			130	462		462		430	26		26		21	712		712		393
Balance, End of period	$ 8,662	$ 7,671	$ 8,662	$ 7,671		$ 5,920	$ 5,791	$ 5,920	$ 5,791		$ 28	$ 26	$ 28	$ 26		$ 1,003	$ 837	$ 1,003	$ 837		$ 369	$ 350	$ 369	$ 350		$ 106	$ 106	$ 106	$ 106		$ 500	$ 496	$ 500	$ 496		$ 26	$ 19	$ 26	$ 19		$ 712	$ 44	$ 712	$ 44

XML

Equity Incentive Plan - Schedule of Stock Option Activity (Detail) (USD $)	6 Months Ended
	Mar. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Stock Options, Outstanding, Beginning balance	1,458,379
Number of Stock Options, Granted
Number of Stock Options, Exercised
Number of Stock Options, Forfeited
Number of Stock Options, Outstanding, Ending balance	1,458,379
Number of Stock Options, Exercisable , Ending balance	1,458,379
Weighted-average Exercise Price, Outstanding, Beginning balance	$ 12.35
Weighted-average Exercise Price, Granted
Weighted-average Exercise Price, Exercised
Weighted-average Exercise Price, Forfeited
Weighted-average Exercise Price, Outstanding, Ending balance	$ 12.35
Weighted-average Exercise Price, Exercisable, Ending balance	$ 12.35
Weighted-average Remaining Contractual Term (in years), Outstanding, Beginning Balance	4 years 8 months 1 day
Weighted-average Remaining Contractual Term (in years), Granted
Weighted-average Remaining Contractual Term (in years), Exercised
Weighted-average Remaining Contractual Term (in years), Forfeited
Weighted-average Remaining Contractual Term (in years), Outstanding, Ending Balance	4 years 8 months 1 day
Weighted-average Remaining Contractual Term (in years), Exercisable, Ending balance	4 years 2 months 1 day
Aggregate Intrinsic Value, Outstanding, September 30, 2013
Aggregate Intrinsic Value, Granted
Aggregate Intrinsic Value, Exercised
Aggregate Intrinsic Value, Forfeited
Aggregate Intrinsic Value, Outstanding, March 31, 2014
Aggregate Intrinsic Value, Exercisable at year-end

XML

Loans Receivable, Net and Allowance for Loan Losses - Schedule of Performing or Non-Performing Loans (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Financing Receivable, Recorded Investment [Line Items]
Total	$ 707,345	$ 733,255
Residential Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	662,233	686,651
Construction Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	2,853	2,288
Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	39,953	41,923
Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	2,306	2,393
Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	698,152	721,971
Performing [Member] | Residential Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	653,430	675,706
Performing [Member] | Construction Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	2,853	2,288
Performing [Member] | Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	39,563	41,584
Performing [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	2,306	2,393
Non-Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	9,193	11,284
Non-Performing [Member] | Residential Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	8,803	10,945
Non-Performing [Member] | Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Total	$ 390	$ 339

XML

Acquisition of FNCB Branch (Tables) (First National Community Bank [Member])

6 Months Ended

Mar. 31, 2014

First National Community Bank [Member]

Condensed Statement Reflecting Values Assigned to Net Assets

The following condensed statement reflects the values assigned to FNCB’s net assets as of the acquisitions date:

Net cash received	$	4,640
Net assets acquired:
Cash	$	11
Loans receivable and accrued interest receivable		1,033
Premises and equipment, net		1,626
Certificates of deposits		(3,069	)
Deposits other than certificates of deposits		(5,683	)
		6,082
Goodwill resulting from FNCB purchase	$	1,442

XML

Fair Value Measurement - Schedule of Securities, Other Real Estate Owned and Impaired Loans Measured at Fair Value (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	$ 314,329	$ 315,622
Foreclosed real estate owned measured on a non-recurring basis	2,168	2,111
Impaired loans measured on a non-recurring basis	37,610	36,407
Total Mortgage-Backed Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	217,249	217,837
Obligations of States and Political Subdivisions [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	23,106	23,909
U.S. Government Agency Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	47,841	52,520
Corporate Obligations [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	13,300	12,773
Trust-Preferred Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	5,546	5,414
Other Debt Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	5,262	1,154
Equity Securities-Financial Services [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	2,025	2,015
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	2,025	2,015
Foreclosed real estate owned measured on a non-recurring basis
Impaired loans measured on a non-recurring basis
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Total Mortgage-Backed Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Obligations of States and Political Subdivisions [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government Agency Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Obligations [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Trust-Preferred Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Debt Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities-Financial Services [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	2,025	2,015
Significant Other Observable Inputs (Level 2) [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	310,474	311,807
Foreclosed real estate owned measured on a non-recurring basis
Impaired loans measured on a non-recurring basis
Significant Other Observable Inputs (Level 2) [Member] | Total Mortgage-Backed Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	217,249	217,837
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	23,106	23,909
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Agency Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	47,841	52,520
Significant Other Observable Inputs (Level 2) [Member] | Corporate Obligations [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	13,300	12,773
Significant Other Observable Inputs (Level 2) [Member] | Trust-Preferred Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	3,716	3,614
Significant Other Observable Inputs (Level 2) [Member] | Other Debt Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	5,262	1,154
Significant Other Observable Inputs (Level 2) [Member] | Equity Securities-Financial Services [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities
Significant Unobservable Inputs (Level 3) [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	1,830	1,800
Foreclosed real estate owned measured on a non-recurring basis	2,168	2,111
Impaired loans measured on a non-recurring basis	37,610	36,407
Significant Unobservable Inputs (Level 3) [Member] | Total Mortgage-Backed Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities
Significant Unobservable Inputs (Level 3) [Member] | U.S. Government Agency Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities
Significant Unobservable Inputs (Level 3) [Member] | Corporate Obligations [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities
Significant Unobservable Inputs (Level 3) [Member] | Trust-Preferred Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities	1,830	1,800
Significant Unobservable Inputs (Level 3) [Member] | Other Debt Securities [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities-Financial Services [Member]
Securities available-for-sale measured on a recurring basis
Total debt and equity securities

XML

Investment Securities (Tables)

6 Months Ended

Mar. 31, 2014

Investments Debt And Equity Securities [Abstract]

Summary of Amortized Cost and Fair Value of Investment Securities Available for Sale

The amortized cost and fair value of investment securities available for sale are summarized as follows (in thousands):

	March 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
Fannie Mae	$	119,520	$	1,232	$	(1,719	)	$	119,033
Freddie Mac		64,581		586		(1,389	)		63,778
Governmental National Mortgage Association		31,602		170		(205	)		31,567
Other mortgage-backed securities		2,883		—		(12	)		2,871
Total mortgage-backed securities		218,586		1,988		(3,325	)		217,249
Obligations of states and political subdivisions		22,810		722		(426	)		23,106
U.S. government agency securities		48,276		192		(627	)		47,841
Corporate obligations		13,199		197		(96	)		13,300
Trust-preferred securities		4,990		556		—			5,546
Other debt securities		5,275		19		(32	)		5,262
Total debt securities		313,136		3,674		(4,506	)		312,304
Equity securities - financial services		2,025		—		—			2,025
Total	$	315,161	$	3,674	$	(4,506	)	$	314,329
	September 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
Fannie Mae	$	114,927	$	1,691	$	(1,595	)	$	115,023
Freddie Mac		60,111		838		(1,252	)		59,697
Governmental National Mortgage Association		39,692		289		(230	)		39,751
Other mortgage-backed securities		3,385		—		(19	)		3,366
Total mortgage-backed securities		218,115		2,818		(3,096	)		217,837
Obligations of states and political subdivisions		23,754		654		(499	)		23,909
U.S. government agency securities		52,775		225		(480	)		52,520
Corporate obligations		12,756		186		(169	)		12,773
Trust-preferred securities		4,943		471		—			5,414
Other debt securities		1,147		7		—			1,154
Total debt securities		313,490		4,361		(4,244	)		313,607
Equity securities - financial services		2,025		—		(10	)		2,015
Total	$	315,515	$	4,361	$	(4,254	)	$	315,622

Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

The amortized cost and fair value of debt securities at March 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands):

	Available For Sale
	Amortized Cost		Fair Value
Due in one year or less	$	1,622	$	1,635
Due after one year through five years		45,608		45,754
Due after five years through ten years		63,886		63,928
Due after ten years		202,020		200,987
Total	$	313,136	$	312,304

XML

Loans Receivable, Net and Allowance for Loan Losses - Summary of Troubled Debt Restructurings Subsequently Defaulted within One Year of Modification (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014 Contract	Mar. 31, 2013 Contract	Mar. 31, 2014 Contract	Mar. 31, 2013 Contract
Real Estate Loans [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts		1		1
Pre-Modification Outstanding Recorded Investment		$ 77		$ 77
Real Estate Loans [Member] | Construction [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Real Estate Loans [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Commercial Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Obligations of States and Political Subdivisions [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts		1		1
Pre-Modification Outstanding Recorded Investment		5		5
Other [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts		2		2
Pre-Modification Outstanding Recorded Investment		$ 82		$ 82

XML

Loans Receivable, Net and Allowance for Loan Losses - Schedule of Loans Evaluated for Impairment (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Financing Receivable, Recorded Investment [Line Items]
Total Loans	$ 915,018	$ 936,294
Individually Evaluated for Impairment	31,968	30,095
Loans Acquired with Deteriorated Credit Quality	6,561	7,131
Collectively Evaluated for Impairment	876,489	899,068
Residential Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	662,233	686,651
Individually Evaluated for Impairment	12,634	14,018
Loans Acquired with Deteriorated Credit Quality	159	271
Collectively Evaluated for Impairment	649,440	672,362
Construction Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	2,853	2,288
Collectively Evaluated for Impairment	2,853	2,288
Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	156,717	159,469
Individually Evaluated for Impairment	18,517	15,478
Loans Acquired with Deteriorated Credit Quality	5,955	6,355
Collectively Evaluated for Impairment	132,245	137,636
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	10,612	10,125
Individually Evaluated for Impairment	545	220
Loans Acquired with Deteriorated Credit Quality	443	502
Collectively Evaluated for Impairment	9,624	9,403
Obligations of States and Political Subdivisions [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	40,344	33,445
Collectively Evaluated for Impairment	40,344	33,445
Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	39,953	41,923
Individually Evaluated for Impairment	272	379
Loans Acquired with Deteriorated Credit Quality	4	3
Collectively Evaluated for Impairment	39,677	41,541
Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total Loans	2,306	2,393
Collectively Evaluated for Impairment	$ 2,306	$ 2,393

XML

Investment Securities - Summary of Amortized Cost and Fair Value of Investment Securities Available for Sale (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	$ 315,161	$ 315,515
Available for sale, Gross Unrealized Gains	3,674	4,361
Available for sale, Gross Unrealized Losses	(4,506)	(4,254)
Available for sale, Fair Value	314,329	315,622
Fannie Mae [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	119,520	114,927
Available for sale, Gross Unrealized Gains	1,232	1,691
Available for sale, Gross Unrealized Losses	(1,719)	(1,595)
Available for sale, Fair Value	119,033	115,023
Freddie Mac [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	64,581	60,111
Available for sale, Gross Unrealized Gains	586	838
Available for sale, Gross Unrealized Losses	(1,389)	(1,252)
Available for sale, Fair Value	63,778	59,697
Governmental National Mortgage Association [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	31,602	39,692
Available for sale, Gross Unrealized Gains	170	289
Available for sale, Gross Unrealized Losses	(205)	(230)
Available for sale, Fair Value	31,567	39,751
Other Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	2,883	3,385
Available for sale, Gross Unrealized Losses	(12)	(19)
Available for sale, Fair Value	2,871	3,366
Total Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	218,586	218,115
Available for sale, Gross Unrealized Gains	1,988	2,818
Available for sale, Gross Unrealized Losses	(3,325)	(3,096)
Available for sale, Fair Value	217,249	217,837
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	22,810	23,754
Available for sale, Gross Unrealized Gains	722	654
Available for sale, Gross Unrealized Losses	(426)	(499)
Available for sale, Fair Value	23,106	23,909
U.S. Government Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	48,276	52,775
Available for sale, Gross Unrealized Gains	192	225
Available for sale, Gross Unrealized Losses	(627)	(480)
Available for sale, Fair Value	47,841	52,520
Corporate Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	13,199	12,756
Available for sale, Gross Unrealized Gains	197	186
Available for sale, Gross Unrealized Losses	(96)	(169)
Available for sale, Fair Value	13,300	12,773
Trust-Preferred Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	4,990	4,943
Available for sale, Gross Unrealized Gains	556	471
Available for sale, Fair Value	5,546	5,414
Other Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	5,275	1,147
Available for sale, Gross Unrealized Gains	19	7
Available for sale, Gross Unrealized Losses	(32)
Available for sale, Fair Value	5,262	1,154
Total Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	313,136	313,490
Available for sale, Gross Unrealized Gains	3,674	4,361
Available for sale, Gross Unrealized Losses	(4,506)	(4,244)
Available for sale, Fair Value	312,304	313,607
Equity Securities-Financial Services [Member]
Schedule of Available-for-sale Securities [Line Items]
Available for sale, Amortized Cost	2,025	2,025
Available for sale, Gross Unrealized Losses		(10)
Available for sale, Fair Value	$ 2,025	$ 2,015

XML

Net Periodic Benefit Cost-Defined Benefit Plan - Components of Net Periodic Benefit Cost (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Compensation And Retirement Disclosure [Abstract]
Service Cost	$ 145	$ 175	$ 289	$ 351
Interest Cost	190	179	381	358
Expected return on plan assets	(291)	(259)	(581)	(517)
Amortization of unrecognized loss	7	99	14	196
Net periodic benefit cost	$ 51	$ 194	$ 103	$ 388

XML

Fair Value Measurement - Schedule of Estimate of Fair Value Using the Methodologies (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Financial assets:
Cash and cash equivalents	$ 40,662	$ 26,648
Certificates of deposit	1,767	1,767
Investment and mortgage backed securities Available for sale	314,329	315,622
Loans receivable, net	924,826	951,120
Accrued interest receivable	4,191	4,413
FHLB stock	10,353	9,415
Mortgage servicing rights	363	382
Bank owned life insurance	29,250	28,797
Financial liabilities:
Deposits	1,001,598	1,045,400
Short-term borrowings	38,000	23,000
Other borrowings	145,673	124,504
Advances by borrowers for taxes and insurance	8,870	4,962
Accrued interest payable	809	833
Carrying Value [Member]
Financial assets:
Cash and cash equivalents	40,662	26,648
Certificates of deposit	1,767	1,767
Investment and mortgage backed securities Available for sale	314,329	315,622
Loans receivable, net	906,356	928,230
Accrued interest receivable	4,191	4,413
FHLB stock	10,353	9,415
Mortgage servicing rights	363	382
Bank owned life insurance	29,250	28,797
Financial liabilities:
Deposits	998,430	1,041,059
Short-term borrowings	38,000	23,000
Other borrowings	145,550	129,260
Advances by borrowers for taxes and insurance	8,870	4,962
Accrued interest payable	809	833
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets:
Cash and cash equivalents	40,662	26,648
Investment and mortgage backed securities Available for sale	2,025	2,015
Accrued interest receivable	4,191	4,413
FHLB stock	10,353	9,415
Bank owned life insurance	29,250	28,797
Financial liabilities:
Deposits	421,997	406,890
Short-term borrowings	38,000	23,000
Advances by borrowers for taxes and insurance	8,870	4,962
Accrued interest payable	809	833
Significant Other Observable Inputs (Level 2) [Member]
Financial assets:
Certificates of deposit	1,767	1,767
Investment and mortgage backed securities Available for sale	310,474	311,807
Significant Unobservable Inputs (Level 3) [Member]
Financial assets:
Investment and mortgage backed securities Available for sale	1,830	1,800
Loans receivable, net	924,826	951,120
Mortgage servicing rights	363	382
Financial liabilities:
Deposits	579,601	638,510
Other borrowings	$ 145,673	$ 124,504

XML

Loans Receivable, Net and Allowance for Loan Losses - Classes of the Loan Portfolio Summarized by the Aging Categories (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 887,804	$ 906,309
31-60 Days Past Due	3,898	5,639
61-90 Days Past Due	1,119	1,067
Greater than 90 Days Past Due and still accruing
Non-Accrual	22,197	23,279
Total Past Due and Non-Accrual	27,214	29,985
Total Loans	915,018	936,294
Residential Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	649,512	671,850
31-60 Days Past Due	2,834	2,866
61-90 Days Past Due	1,084	990
Greater than 90 Days Past Due and still accruing
Non-Accrual	8,803	10,945
Total Past Due and Non-Accrual	12,721	14,801
Total Loans	662,233	686,651
Construction Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,853	2,288
Greater than 90 Days Past Due and still accruing
Total Loans	2,853	2,288
Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	144,540	146,062
31-60 Days Past Due	493	2,589
Greater than 90 Days Past Due and still accruing
Non-Accrual	11,684	10,818
Total Past Due and Non-Accrual	12,177	13,407
Total Loans	156,717	159,469
Commercial Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	9,093	8,948
31-60 Days Past Due	199
Greater than 90 Days Past Due and still accruing
Non-Accrual	1,320	1,177
Total Past Due and Non-Accrual	1,519	1,177
Total Loans	10,612	10,125
Obligations of States and Political Subdivisions [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	40,344	33,445
Greater than 90 Days Past Due and still accruing
Total Loans	40,344	33,445
Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	39,163	41,380
31-60 Days Past Due	365	127
61-90 Days Past Due	35	77
Greater than 90 Days Past Due and still accruing
Non-Accrual	390	339
Total Past Due and Non-Accrual	790	543
Total Loans	39,953	41,923
Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,299	2,336
31-60 Days Past Due	7	57
Greater than 90 Days Past Due and still accruing
Total Past Due and Non-Accrual	7	57
Total Loans	$ 2,306	$ 2,393

XML

Nature of Operations and Basis of Presentation

6 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Nature of Operations and Basis of Presentation

1. Nature of Operations and Basis of Presentation

The consolidated financial statements include the accounts of ESSA Bancorp, Inc. (the “Company”), and its wholly owned subsidiary, ESSA Bank & Trust (the “Bank”), and the Bank’s wholly owned subsidiaries, ESSACOR, Inc.; Pocono Investments Company; ESSA Advisory Services, LLC; Integrated Financial Corporation; and Integrated Abstract Incorporated, a wholly owned subsidiary of Integrated Financial Corporation. The primary purpose of the Company is to act as a holding company for the Bank. The Company is subject to regulation and supervision as a savings and loan holding company by the Federal Reserve Board. The Bank is a Pennsylvania-chartered savings bank located in Stroudsburg, Pennsylvania. The Bank’s primary business consists of the taking of deposits and granting of loans to customers generally in Monroe, Northampton and Lehigh counties, Pennsylvania. The Bank is subject to regulation and supervision by the Pennsylvania Banking Department and the Federal Deposit Insurance Corporation. The investment in subsidiary on the parent company’s financial statements is carried at the parent company’s equity in the underlying net assets.

ESSACOR, Inc. is a Pennsylvania corporation that has been used to purchase properties at tax sales that represent collateral for delinquent loans of the Bank. Pocono Investment Company is a Delaware corporation formed as an investment company subsidiary to hold and manage certain investments, including certain intellectual property. ESSA Advisory Services, LLC is a Pennsylvania limited liability company owned 100 percent by ESSA Bank & Trust. ESSA Advisory Services, LLC is a full-service insurance benefits consulting company offering group services such as health insurance, life insurance, short-term and long-term disability, dental, vision, and 401(k) retirement planning as well as individual health products. Integrated Financial Corporation is a Pennsylvania Corporation that provided investment advisory services to the general public as a former subsidiary of First Star Bank. The Company acquired First Star Bank in a transaction that closed on July 31, 2012. Integrated Financial Corporation is currently inactive. Integrated Abstract Incorporated is a Pennsylvania Corporation that provides title insurance services. All significant intercompany accounts and transactions have been eliminated in consolidation.

The unaudited consolidated financial statements reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of the results of the interim periods and are of a normal and recurring nature. Operating results for the six month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending September 30, 2014.

XML

Accumulated Other Comprehensive Income - Activity in Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
Beginning Balance, Defined Benefit Pension Plan	$ (1,301)	$ (4,385)	$ (1,306)	$ (4,450)
Other comprehensive income (loss) before reclassifications, Defined Benefit Pension Plan
Amounts reclassified from accumulated other comprehensive income, Defined Benefit Pension Plan	5	67	9	131
Period change, Defined Benefit Pension Plan	5	67	9	131
Ending Balance, Defined Benefit Pension Plan	(1,297)	(4,318)	(1,297)	(4,318)
Beginning Balance, Unrealized Gains (Losses) on Securities Available for Sale	(1,274)	5,573	71	6,208
Other comprehensive income (loss) before reclassifications, Unrealized Gains (Losses) on Securities Available for Sale	880	(625)	(464)	(1,239)
Amounts reclassified from accumulated other comprehensive income, Unrealized Gains (Losses) on Securities Available for Sale	(156)	(467)	(156)	(487)
Period change, Unrealized Gains (Losses) on Securities Available for Sale	724	(1,092)	(620)	(1,726)
Ending Balance, Unrealized Gains (Losses) on Securities Available for Sale	(550)	4,481	(550)	4,481
Balance at September 30, 2012	(2,575)	1,188	(1,235)	1,758
Other comprehensive income (loss) before reclassifications	880	(625)	(464)	(1,239)
Amounts reclassified from accumulated other comprehensive income	(151)	(400)	(147)	(356)
Period change	729	(1,025)	(611)	(1,595)
Balance at March 31, 2013	(1,846)	163	(1,846)	163
Accumulated Other Comprehensive Income (Loss) [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available for sale, Net securities gains reclassified into earnings	(236)	(708)	(236)	(738)
Securities available for sale, Related income tax expense	80	241	80	251
Amounts reclassified from accumulated other comprehensive income, Defined Benefit Pension Plan	5	67	9	131
Amounts reclassified from accumulated other comprehensive income, Unrealized Gains (Losses) on Securities Available for Sale	(156)	(467)	(156)	(487)
Defined benefit pension plan, Amortization of net loss and prior service costs	7	99	14	196
Defined benefit pension plan, Related income tax expense	(2)	(32)	(5)	(65)
Amounts reclassified from accumulated other comprehensive income	$ (151)	$ (400)	$ (147)	$ (356)

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Loans Receivable, Net and Allowance for Loan Losses - Schedule of Investment and Unpaid Principal Balances for Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Mar. 31, 2014	Sep. 30, 2013
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 38,529	$ 37,226
Unpaid Principal Balance	41,886	41,084
Associated Allowance	919	819
Average Recorded Investment	36,813	37,386
Interest Income Recognized	590	860
With no Specific Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	31,270	31,066
Unpaid Principal Balance	34,258	34,685
Average Recorded Investment	31,217	31,892
Interest Income Recognized	532	786
With an Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	7,259	6,160
Unpaid Principal Balance	7,628	6,399
Associated Allowance	919	819
Average Recorded Investment	5,596	5,494
Interest Income Recognized	58	74
Residential Real Estate Loans [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	12,793	14,289
Unpaid Principal Balance	14,476	16,234
Associated Allowance	618	518
Average Recorded Investment	13,090	12,371
Interest Income Recognized	208	233
Residential Real Estate Loans [Member] | With no Specific Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	8,715	11,251
Unpaid Principal Balance	10,089	13,013
Average Recorded Investment	9,855	9,716
Interest Income Recognized	150	159
Residential Real Estate Loans [Member] | With an Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	4,078	3,038
Unpaid Principal Balance	4,387	3,221
Associated Allowance	618	518
Average Recorded Investment	3,235	2,655
Interest Income Recognized	58	74
Construction [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment
Unpaid Principal Balance
Associated Allowance
Average Recorded Investment
Interest Income Recognized
Construction [Member] | With no Specific Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment
Unpaid Principal Balance
Associated Allowance
Average Recorded Investment
Interest Income Recognized
Construction [Member] | With an Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment
Unpaid Principal Balance
Associated Allowance
Average Recorded Investment
Interest Income Recognized
Commercial Real Estate Loans [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	24,472	21,833
Unpaid Principal Balance	25,788	23,436
Associated Allowance	263	301
Average Recorded Investment	22,396	23,590
Interest Income Recognized	374	615
Commercial Real Estate Loans [Member] | With no Specific Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	21,328	18,711
Unpaid Principal Balance	22,592	20,258
Average Recorded Investment	20,041	20,751
Interest Income Recognized	374	615
Commercial Real Estate Loans [Member] | With an Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	3,144	3,122
Unpaid Principal Balance	3,196	3,178
Associated Allowance	263	301
Average Recorded Investment	2,355	2,839
Commercial Loans [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	988	722
Unpaid Principal Balance	1,019	731
Average Recorded Investment	1,002	1,034
Interest Income Recognized	6	9
Commercial Loans [Member] | With no Specific Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	988	722
Unpaid Principal Balance	1,019	731
Average Recorded Investment	1,002	1,034
Interest Income Recognized	6	9
Commercial Loans [Member] | With an Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment
Unpaid Principal Balance
Associated Allowance
Average Recorded Investment
Interest Income Recognized
Obligations of States and Political Subdivisions [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment
Unpaid Principal Balance
Associated Allowance
Average Recorded Investment
Interest Income Recognized
Obligations of States and Political Subdivisions [Member] | With no Specific Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment
Unpaid Principal Balance
Associated Allowance
Average Recorded Investment
Interest Income Recognized
Obligations of States and Political Subdivisions [Member] | With an Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment
Unpaid Principal Balance
Associated Allowance
Average Recorded Investment
Interest Income Recognized
Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	276	382
Unpaid Principal Balance	603	683
Associated Allowance	38
Average Recorded Investment	325	373
Interest Income Recognized	2	3
Home Equity Loans and Lines of Credit [Member] | With no Specific Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	239	382
Unpaid Principal Balance	558	683
Average Recorded Investment	319	373
Interest Income Recognized	2	3
Home Equity Loans and Lines of Credit [Member] | With an Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	37
Unpaid Principal Balance	45
Associated Allowance	38
Average Recorded Investment	6
Interest Income Recognized
Other [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment
Unpaid Principal Balance
Associated Allowance
Average Recorded Investment		18
Interest Income Recognized
Other [Member] | With no Specific Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment
Unpaid Principal Balance
Associated Allowance
Average Recorded Investment		18
Interest Income Recognized
Other [Member] | With an Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment
Unpaid Principal Balance
Associated Allowance
Average Recorded Investment
Interest Income Recognized

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Net Periodic Benefit Cost-Defined Benefit Plan (Tables)

6 Months Ended

Mar. 31, 2014

Compensation And Retirement Disclosure [Abstract]

Summary of the Components of Net Periodic Benefit Cost

The following table comprises the components of net periodic benefit cost for the periods ended (in thousands):

	Three Months Ended March 31,						Six Months Ended March 31,
	2014			2013			2014			2013
Service Cost	$	145		$	175		$	289		$	351
Interest Cost		190			179			381			358
Expected return on plan assets		(291	)		(259	)		(581	)		(517	)
Amortization of unrecognized loss		7			99			14			196
Net periodic benefit cost	$	51		$	194		$	103		$	388

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Deposits (Tables)

6 Months Ended

Mar. 31, 2014

Banking And Thrift [Abstract]

Schedule of Deposits by Major Classifications

Deposits consist of the following major classifications (in thousands):

	March 31, 2014		September 30, 2013
Non-interest bearing demand accounts	$	62,262	$	58,795
NOW accounts		98,946		99,857
Money market accounts		141,409		138,049
Savings and club accounts		119,380		110,189
Certificates of deposit		576,433		634,169
Total	$	998,430	$	1,041,059

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Equity Incentive Plan - Schedule of Restricted Stock Option Activity (Detail) (USD $)	1 Months Ended	6 Months Ended
	Apr. 01, 2013	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted Stock, Granted
Number of Restricted Stock, Forfeited
Weighted-average Grant Date Fair Value, Forfeited
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted Stock, Nonvested, Beginning balance		14,995
Number of Restricted Stock, Granted	30,000
Number of Restricted Stock, Vested		1,661
Number of Restricted Stock, Forfeited
Number of Restricted Stock, Nonvested, Ending balance		13,334
Weighted-average Grant Date Fair Value, Nonvested, Beginning balance		$ 10.94
Weighted-average Grant Date Fair Value, Granted
Weighted-average Grant Date Fair Value, Vested		$ 10.94
Weighted-average Grant Date Fair Value, Forfeited
Weighted-average Grant Date Fair Value, Nonvested, Ending balance		$ 10.94

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Loans Receivable, Net and Allowance for Loan Losses - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Receivables [Abstract]
Criteria in internal rating system			Ten point
Categories considered as not criticized			Six
Days past due over which loans are considered as substandard			90 days
Minimum internal review amount	$ 250,000		$ 250,000
Minimum external review amount	500,000		500,000
Troubled debt restructurings granted terms concession	197,000	74,000	660,000	74,000
Troubled debt restructurings granted terms and rate concession	$ 473,000	$ 397,000	$ 604,000	$ 527,000

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Equity Incentive Plan (Tables)

6 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of Stock Option Activity

The following is a summary of the Company’s stock option activity and related information for its option grants for the six month period ended March 31, 2014.

	Number of Stock Options		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding, September 30, 2013		1,458,379	$	12.35		4.67	$	—
Granted		—		—		—		—
Exercised		—		—		—		—
Forfeited		—		—		—		—
Outstanding, March 31, 2014		1,458,379	$	12.35		4.17	$	—
Exercisable at March 31, 2014		1,458,379	$	12.35		4.17	$	—

Schedule of Restricted Stock Option Activity

The following is a summary of the status of the Company’s restricted stock as of March 31, 2014, and changes therein during the six month period then ended:

	Number of Restricted Stock		Weighted- average Grant Date Fair Value
Nonvested at September 30, 2013		14,995	$	10.94
Granted		—		—
Vested		1,661		10.94
Forfeited		—		—
Nonvested at March 31, 2014		13,334	$	10.94

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Fair Value Measurement (Tables)

6 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Schedule of Securities, Other Real Estate Owned and Impaired Loans Measured at Fair Value

The following table presents information about the Company’s securities, other real estate owned and impaired loans measured at fair value as of March 31, 2014 and September 30, 2013 and indicates the fair value hierarchy of the valuation techniques utilized by the Bank to determine such fair value:

	Fair Value Measurement at March 31, 2014
Fair Value Measurements Utilized for the Company’s Financial Assets (in thousands):	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balances as of     March 31, 2014
Securities available-for-sale measured on a recurring basis
Mortgage backed securities	$	—	$	217,249	$	—	$	217,249
Obligations of states and political subdivisions		—		23,106		—		23,106
U.S. government agencies		—		47,841		—		47,841
Corporate obligations		—		13,300		—		13,300
Trust-preferred securities		—		3,716		1,830		5,546
Other debt securities		—		5,262		—		5,262
Equity securities-financial services		2,025		—		—		2,025
Total debt and equity securities	$	2,025	$	310,474	$	1,830	$	314,329
Foreclosed real estate owned measured on a non-recurring basis	$	—	$	—	$	2,168	$	2,168
Impaired loans measured on a non-recurring basis	$	—	$	—	$	37,610	$	37,610

	Fair Value Measurement at September 30, 2013
Fair Value Measurements Utilized for the Company’s Financial Assets (in thousands):	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balances as of September 30, 2013
Securities available-for-sale measured on a recurring basis
Mortgage backed securities	$	—	$	217,837	$	—	$	217,837
Obligations of states and political subdivisions		—		23,909		—		23,909
U.S. government agencies		—		52,520		—		52,520
Corporate obligations		—		12,773		—		12,773
Trust-preferred securities		—		3,614		1,800		5,414
Other debt securities		—		1,154		—		1,154
Equity securities-financial services		2,015		—		—		2,015
Total debt and equity securities	$	2,015	$	311,807	$	1,800	$	315,622
Foreclosed real estate owned measured on a non-recurring basis	$	—	$	—	$	2,111	$	2,111
Impaired loans measured on a non-recurring basis	$	—	$	—	$	36,407	$	36,407

Schedule of Changes in Fair Value of Level III Investments

The following table presents a summary of changes in the fair value of the Company’s Level III investments for the periods ended March 31, 2014 and March 31, 2013.

	Fair Value Measurement Using Significant Unobservable Inputs (Level III)
	Three months ended
	March 31, 2014			March 31, 2013
Beginning balance	$	1,840		$	1,760
Purchases, sales, issuances, settlements, net		—			—
Total unrealized gain:
Included in earnings		—
Included in other comprehensive income		(10	)		—
Transfers in and/or out of Level III		—			—
	$	1,830		$	1,760

	Fair Value Measurement Using Significant Unobservable Inputs (Level III)
	Six months ended
	March 31, 2014		March 31, 2013
Beginning balance	$	1,800	$	1,740
Purchases, sales, issuances, settlements, net		—		—
Total unrealized gain:
Included in earnings		—		—
Included in other comprehensive income		30		20
Transfers in and/or out of Level III		—		—
	$	1,830	$	1,760

Summary of Additional Quantitative Information about Assets Measured at Fair Value on a Nonrecurring Basis

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

	Quantitative Information about Level 3 Fair Value Measurements
(unaudited, in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
March 31, 2014:
Impaired loans		37,610	Appraisal of collateral(1)	Appraisal adjustments(2)	0% to 30% (23.4%)
Foreclosed real estate owned		2,168	Appraisal of collateral(1), (3)	Appraisal adjustments(2)	20% to 40% (22.0%)

	Quantitative Information about Level 3 Fair Value Measurements
(unaudited, in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
September 30, 2013:
Impaired loans		36,407	Appraisal of collateral(1)	Appraisal adjustments(2)	0% to 30% (23.5%)
Foreclosed real estate owned		2,111	Appraisal of collateral(1), (3)	Appraisal adjustments(2)	0% to 30% (20.4%)

(1) Fair value is generally determined through independent appraisals of 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 of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

Schedule of Estimate of Fair Value Using the Methodologies

The fair values presented represent the Company’s best estimate of fair value using the methodologies discussed below.

	March 31, 2014
	Carrying Value		Level I		Level II		Level III		Total Fair Value
Financial assets:
Cash and cash equivalents	$	40,662	$	40,662	$	—	$	—	$	40,662
Certificates of deposit		1,767		—		1,767		—		1,767
Investment and mortgage backed securities available for sale		314,329		2,025		310,474		1,830		314,329
Loans receivable, net		906,356		—		—		924,826		924,826
Accrued interest receivable		4,191		4,191		—		—		4,191
FHLB stock		10,353		10,353		—		—		10,353
Mortgage servicing rights		363		—		—		363		363
Bank owned life insurance		29,250		29,250		—		—		29,250
Financial liabilities:
Deposits	$	998,430	$	421,997	$	—	$	579,601		1,001,598
Short-term borrowings		38,000		38,000		—		—		38,000
Other borrowings		145,550		—		—		145,673		145,673
Advances by borrowers for taxes and insurance		8,870		8,870		—		—		8,870
Accrued interest payable		809		809		—		—		809

	September 30, 2013
	Carrying Value		Level I		Level II		Level III		Total Fair Value
Financial assets:
Cash and cash equivalents	$	26,648	$	26,648	$	—	$	—	$	26,648
Certificates of deposit		1,767		—		1,767		—		1,767
Investment and mortgage backed securities available for sale		315,622		2,015		311,807		1,800		315,622
Loans receivable, net		928,230		—		—		951,120		951,120
Accrued interest receivable		4,413		4,413		—		—		4,413
FHLB stock		9,415		9,415		—		—		9,415
Mortgage servicing rights		382		—		—		382		382
Bank owned life insurance		28,797		28,797		—		—		28,797
Financial liabilities:
Deposits	$	1,041,059	$	406,890	$	—	$	638,510		1,045,400
Short-term borrowings		23,000		23,000		—		—		23,000
Other borrowings		129,260		—		—		124,504		124,504
Advances by borrowers for taxes and insurance		4,962		4,962		—		—		4,962
Accrued interest payable		833		833		—		—		833

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Consolidated Statement of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
OPERATING ACTIVITIES
Net income	$ 3,506	$ 4,919
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	1,500	1,850
Provision for depreciation and amortization	583	569
Amortization and accretion of discounts and premiums, net	467	891
Net gain on sale of investment securities	(236)	(738)
Gain on sale of loans, net		(415)
Origination of mortgage loans sold		(18,821)
Proceeds from sale of mortgage loans originated for sale		19,582
Compensation expense on ESOP	250	239
Stock based compensation	122	1,055
Decrease in accrued interest receivable	222	257
Decrease in accrued interest payable	(24)	(281)
Earnings on bank-owned life insurance	(453)	(474)
Deferred federal income taxes	(148)	745
Decrease in prepaid FDIC premiums		449
Increase in accrued pension liability		408
Gain on foreclosed real estate, net	(51)	(398)
Amortization of identifiable intangible assets	474	499
Other, net	994	2,084
Net cash provided by operating activities	7,206	12,420
INVESTING ACTIVITIES
Purchase of certificates of deposit		(500)
Investment securities available for sale:
Proceeds from sale of investment securities	8,065	39,189
Proceeds from principal repayments and maturities	37,245	65,070
Purchases	(45,221)	(92,372)
Decrease in loans receivable, net	20,065	8,689
Redemption of FHLB stock	1,484	5,652
Purchase of FHLB stock	(2,422)
Investment in limited partnership		(110)
Proceeds from sale of foreclosed real estate	1,367	2,393
Acquisition, including cash acquired	4,654
Capital improvements to foreclosed real estate		(39)
Purchase of premises, equipment, and software	(267)	(481)
Net cash provided by investing activities	24,970	27,491
FINANCING ACTIVITIES
(Decrease) increase in deposits, net	(51,381)	14,395
Net increase (decrease) in short-term borrowings	15,000	(10,243)
Proceeds from other borrowings	30,500	16,800
Repayment of other borrowings	(14,210)	(50,200)
Increase in advances by borrowers for taxes and insurance	3,908	5,993
Purchase of treasury stock shares	(676)	(7,064)
Dividends on common stock	(1,303)	(1,182)
Net cash used for financing activities	(18,162)	(31,501)
Increase in cash and cash equivalents	14,014	8,410
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	26,648	15,550
CASH AND CASH EQUIVALENTS AT END OF PERIOD	40,662	23,960
Cash Paid:
Interest	5,300	6,318
Income taxes	2	655
Noncash items:
Transfers from loans to foreclosed real estate	1,373	657
Treasury stock payable		26
Acquisition of FNCB:
Cash received	4,640
Loans receivable and accrued interest receivable	1,033
Premises and equipment	1,626
Goodwill	1,442
Total noncash assets	4,101
Liabilities assumed:
Certificates of deposit	3,069
Deposits other than certificates of deposit	5,683
Total noncash liabilities	8,752
Net noncash assets acquired	(4,651)
Cash acquired	$ 11

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Accumulated Other Comprehensive Income (Tables) (Reclassification Out of Accumulated Other Comprehensive Income [Member])

6 Months Ended

Mar. 31, 2014

Reclassification Out of Accumulated Other Comprehensive Income [Member]

Activity in Accumulated Other Comprehensive Income

The activity in accumulated other comprehensive income for the three and six months ended March 31, 2014 and 2013 is as follows:

	Accumulated Other Comprehensive Income/(Loss)
	Defined Benefit Pension Plan			Unrealized Gains (Losses) on Securities Available for Sale			Total
Balance at December 31, 2013	$	(1,301	)	$	(1,274	)	$	(2,575	)
Other comprehensive income before reclassifications		—			880			880
Amounts reclassified from accumulated other comprehensive income		5			(156	)		(151	)
Period change		5			724			729
Balance at March 31, 2014	$	(1,296	)	$	(550	)	$	(1,846	)
Balance at December 31, 2012	$	(4,385	)	$	5,573		$	1,188
Other comprehensive loss before reclassifications		—			(625	)		(625	)
Amounts reclassified from accumulated other comprehensive income		67			(467	)		(400	)
Period change		67			(1,092	)		(1,025	)
Balance at March 31, 2013	$	(4,318	)	$	4,481		$	163

	Accumulated Other Comprehensive Income/(Loss)
	Defined Benefit Pension Plan			Unrealized Gains (Losses) on Securities Available for Sale			Total
Balance at September 30, 2013	$	(1,306	)	$	71		$	(1,235	)
Other comprehensive loss before reclassifications		—			(464	)		(464	)
Amounts reclassified from accumulated other comprehensive income		9			(156	)		(147	)
Period change		9			(620	)		(611	)
Balance at March 31, 2014	$	(1,297	)	$	(549	)	$	(1,846	)
Balance at September 30, 2012	$	(4,450	)	$	6,208		$	1,758
Other comprehensive loss before reclassifications		—			(1,239	)		(1,239	)
Amounts reclassified from accumulated other comprehensive income		131			(487	)		(356	)
Period change		131			(1,726	)		(1,595	)
Balance at March 31, 2013	$	(4,319	)	$	4,482		$	163

	Amount Reclassified from Accumulated Other Comprehensive Income
	Accumulated Other Comprehensive Income for the Three Months Ended March 31,						Affected Line Item in the Consolidated Statement of Income
	2014			2013
Securities available for sale:
Net securities gains reclassified into earnings	$	(236	)	$	(708	)	Gain on sale of investments, net
Related income tax expense		80			241		Provision for income taxes
Net effect on accumulated other comprehensive income for the period		(156	)		(467	)	Net of tax
Defined benefit pension plan:
Amortization of net loss and prior service costs		7			99		Compensation and employee benefits
Related income tax expense	$	(2	)	$	(32	)	Provision for income taxes
Net effect on accumulated other		5			67		Net of tax
Total reclassification for the period	$	(151	)	$	(400	)	Net of tax

	Amount Reclassified from Accumulated Other Comprehensive Income
	Accumulated Other Comprehensive Income for the Six Months Ended March 31,						Affected Line Item in the Consolidated Statement of Income
	2014			2013
Securities available for sale:
Net securities gains reclassified into earnings	$	(236	)	$	(738	)	Gain on sale of investments, net
Related income tax expense		80			251		Provision for income taxes
Net effect on accumulated other comprehensive income for the period		(156	)		(487	)	Net of tax
Defined benefit pension plan:
Amortization of net loss and prior service costs		14			196		Compensation and employee benefits
Related income tax expense	$	(5	)	$	(65	)	Provision for income taxes
Net effect on accumulated other		9			131		Net of tax
Total reclassification for the period	$	(147	)	$	(356	)	Net of tax

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Unrealized Losses on Securities - Schedule of Gross Unrealized Losses and Fair Value (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014 Security	Sep. 30, 2013 Security
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	101	82
Fair Value, Less than Twelve Months	$ 129,234	$ 139,442
Gross Unrealized Losses, Less than Twelve Months	(2,864)	(4,247)
Fair Value, Twelve Months or Greater	39,094	2,056
Gross Unrealized Losses, Twelve Months or Greater	(1,642)	(7)
Fair Value, Total	168,328	141,498
Gross Unrealized Losses, Total	(4,506)	(4,254)
Fannie Mae [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	34	30
Fair Value, Less than Twelve Months	39,925	47,814
Gross Unrealized Losses, Less than Twelve Months	(989)	(1,589)
Fair Value, Twelve Months or Greater	15,211	1,057
Gross Unrealized Losses, Twelve Months or Greater	(730)	(6)
Fair Value, Total	55,136	48,871
Gross Unrealized Losses, Total	(1,719)	(1,595)
Freddie Mac [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	28	20
Fair Value, Less than Twelve Months	37,382	32,781
Gross Unrealized Losses, Less than Twelve Months	(972)	(1,252)
Fair Value, Twelve Months or Greater	10,072
Gross Unrealized Losses, Twelve Months or Greater	(417)
Fair Value, Total	47,454	32,781
Gross Unrealized Losses, Total	(1,389)	(1,252)
Governmental National Mortgage Association [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	8	6
Fair Value, Less than Twelve Months	5,004	10,301
Gross Unrealized Losses, Less than Twelve Months	(29)	(230)
Fair Value, Twelve Months or Greater	6,747
Gross Unrealized Losses, Twelve Months or Greater	(176)
Fair Value, Total	11,751	10,301
Gross Unrealized Losses, Total	(205)	(230)
Other Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	3	3
Fair Value, Less than Twelve Months	559	3,366
Gross Unrealized Losses, Less than Twelve Months	(2)	(19)
Fair Value, Twelve Months or Greater	2,312
Gross Unrealized Losses, Twelve Months or Greater	(10)
Fair Value, Total	2,871	3,366
Gross Unrealized Losses, Total	(12)	(19)
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	6	7
Fair Value, Less than Twelve Months	2,883	8,064
Gross Unrealized Losses, Less than Twelve Months	(117)	(499)
Fair Value, Twelve Months or Greater	4,752
Gross Unrealized Losses, Twelve Months or Greater	(309)
Fair Value, Total	7,635	8,064
Gross Unrealized Losses, Total	(426)	(499)
U.S. Government Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	13	10
Fair Value, Less than Twelve Months	33,970	30,084
Gross Unrealized Losses, Less than Twelve Months	(627)	(479)
Fair Value, Twelve Months or Greater		999
Gross Unrealized Losses, Twelve Months or Greater		(1)
Fair Value, Total	33,970	31,083
Gross Unrealized Losses, Total	(627)	(480)
Corporate Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	6	5
Fair Value, Less than Twelve Months	5,415	5,042
Gross Unrealized Losses, Less than Twelve Months	(96)	(169)
Fair Value, Total	5,415	5,042
Gross Unrealized Losses, Total	(96)	(169)
Other Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities	3
Fair Value, Less than Twelve Months	4,096
Gross Unrealized Losses, Less than Twelve Months	(32)
Fair Value, Total	4,096
Gross Unrealized Losses, Total	(32)
Equity Securities-Financial Services [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of Securities		1
Fair Value, Less than Twelve Months		1,990
Gross Unrealized Losses, Less than Twelve Months		(10)
Fair Value, Total		1,990
Gross Unrealized Losses, Total		$ (10)

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Net Periodic Benefit Cost-Defined Benefit Plan - Additional Information (Detail) (USD $)	6 Months Ended
	Mar. 31, 2014
Compensation And Retirement Disclosure [Abstract]
Expected contribution of bank	$ 550,000

XML

Consolidated Balance Sheet (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Statement Of Financial Position [Abstract]
Cash and due from banks	$ 12,895	$ 22,393
Interest-bearing deposits with other institutions	27,767	4,255
Total cash and cash equivalents	40,662	26,648
Certificates of deposit	1,767	1,767
Investment securities available for sale, at fair value	314,329	315,622
Loans receivable (net of allowance for loan losses of $8,662 and $8,064)	906,356	928,230
Regulatory stock, at cost	10,353	9,415
Premises and equipment, net	17,055	15,747
Bank-owned life insurance	29,250	28,797
Foreclosed real estate	2,168	2,111
Intangible assets, net	1,992	2,466
Goodwill	10,259	8,817
Deferred income taxes	11,350	11,183
Other assets	19,853	21,512
TOTAL ASSETS	1,365,394	1,372,315
LIABILITIES
Deposits	998,430	1,041,059
Short-term borrowings	38,000	23,000
Other borrowings	145,550	129,260
Advances by borrowers for taxes and insurance	8,870	4,962
Other liabilities	6,810	7,588
TOTAL LIABILITIES	1,197,660	1,205,869
STOCKHOLDERS' EQUITY
Preferred Stock ($.01 par value; 10,000,000 shares authorized, none issued)
Common stock ($.01 par value; 40,000,000 shares authorized, 18,133,095 issued; 11,885,778 and 11,945,564 outstanding at March 31, 2014 and September 30, 2013)	181	181
Additional paid in capital	182,586	182,440
Unallocated common stock held by the Employee Stock Ownership Plan (ESOP)	(10,306)	(10,532)
Retained earnings	73,912	71,709
Treasury stock, at cost; 6,247,317 and 6,187,531 shares outstanding at March 31, 2014 and September 30, 2013, respectively	(76,793)	(76,117)
Accumulated other comprehensive loss	(1,846)	(1,235)
TOTAL STOCKHOLDERS' EQUITY	167,734	166,446
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,365,394	$ 1,372,315

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Loans Receivable, Net and Allowance for Loan Losses - Classes of Loan Portfolio, Internal Risk Rating System (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Financing Receivable, Recorded Investment [Line Items]
Loan, total	$ 207,673	$ 203,039
Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	156,717	159,469
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	10,612	10,125
Obligations of States and Political Subdivisions [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	40,344	33,445
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	176,248	172,710
Pass [Member] | Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	126,234	129,799
Pass [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	9,670	9,466
Pass [Member] | Obligations of States and Political Subdivisions [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	40,344	33,445
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	7,746	9,876
Special Mention [Member] | Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	7,470	9,440
Special Mention [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	276	436
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	23,373	20,453
Substandard [Member] | Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	22,707	20,230
Substandard [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	666	223
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	306
Doubtful [Member] | Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan, total	$ 306

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Consolidated Statement of Changes in Stockholders' Equity (USD $) In Thousands, except Share data	Total	Common Stock [Member]	Additional Paid In Capital [Member]	Unallocated Common Stock Held by the ESOP [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Sep. 30, 2013	$ 166,446	$ 181	$ 182,440	$ (10,532)	$ 71,709	$ (76,117)	$ (1,235)
Beginning Balance, Shares at Sep. 30, 2013	11,945,564	11,945,564
Net income	3,506				3,506
Other comprehensive loss	(611)						(611)
Cash dividends declared ($.12 per share)	(1,303)				(1,303)
Stock based compensation	122		122
Allocation of ESOP stock	250		24	226
Treasury shares purchased	(676)					(676)
Treasury shares purchased, Shares		(59,786)
Ending Balance at Mar. 31, 2014	$ 167,734	$ 181	$ 182,586	$ (10,306)	$ 73,912	$ (76,793)	$ (1,846)
Ending Balance, Shares at Mar. 31, 2014	11,885,778	11,885,778

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Fair Value Measurement - Additional Information (Detail) (USD $)	6 Months Ended	12 Months Ended
	Mar. 31, 2014 Loans	Sep. 30, 2013 Loans
Fair Value Disclosures [Abstract]
Number of impaired loans	233	233
Impaired loans, carrying value	$ 38,500,000	$ 36,400,000
Impaired loans, valuation allowance	919,000	819,000
Impaired loans, net fair value	$ 37,600,000	$ 37,600,000

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Earnings Per Share - Composition of the Weighted-Average Common Shares (Denominator) Used in the Basic and Diluted Earnings per Share Computation (Detail)	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Earnings Per Share [Abstract]
Weighted-average common shares outstanding	18,133,095	18,133,095	18,133,095	18,133,095
Average treasury stock shares	(6,236,798)	(5,261,181)	(6,213,543)	(5,081,861)
Average unearned ESOP shares	(1,024,111)	(1,069,387)	(1,029,831)	(1,075,107)
Average unearned non-vested shares	(12,667)	(38,945)	(13,864)	(43,587)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share	10,859,519	11,763,582	10,875,857	11,932,540
Additional common stock equivalents (non-vested stock) used to calculate diluted earnings per share
Additional common stock equivalents (stock options) used to calculate diluted earnings per share	184		8,214
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share	10,859,703	11,763,582	10,884,071	11,932,540

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Subsequent Event - Additional Information (Detail) (Subsequent Event [Member], Franklin Security Bancorp [Member], USD $) In Millions, unless otherwise specified	Apr. 04, 2014
Subsequent Event [Member] | Franklin Security Bancorp [Member]
Subsequent Event [Line Items]
Business acquisition price	$ 15.7
Value of acquired asset	218.8
Loan outstanding of acquired asset	155.3
Deposit value of acquired asset	$ 162.1

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Subsequent Event

6 Months Ended

Mar. 31, 2014

Subsequent Events [Abstract]

Subsequent Event

14. Subsequent Event

On April 4, 2014, the Company completed its acquisition of Franklin Security Bancorp, Inc. and its wholly owned subsidiary, Franklin Security Bank, through an all cash transaction valued at approximately $15.7 million. Franklin Security Bank had assets of approximately $218.8 million at closing, with total loans of approximately $155.3 million and total deposits of approximately $162.1 million.

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Earnings Per Share - Additional Information (Detail) (USD $)	6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	317,910	1,458,379
Price per share of anti-dilutive shares	$ 12.35	$ 12.35
Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	8,886	19,110
Price per share of anti-dilutive shares	$ 10.94	$ 12.35

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Earnings per Share (Tables)

6 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Composition of the Weighted-Average Common Shares (Denominator) Used in the Basic and Diluted Earnings per Share Computation

The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation for the three and six month periods ended March 31, 2014 and 2013.

	Three months ended						Six months ended
	March 31, 2014			March 31, 2013			March 31, 2014			March 31, 2013
Weighted-average common shares outstanding		18,133,095			18,133,095			18,133,095			18,133,095
Average treasury stock shares		(6,236,798	)		(5,261,181	)		(6,213,543	)		(5,081,861	)
Average unearned ESOP shares		(1,024,111	)		(1,069,387	)		(1,029,831	)		(1,075,107	)
Average unearned non-vested shares		(12,667	)		(38,945	)		(13,864	)		(43,587	)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share		10,859,519			11,763,582			10,875,857			11,932,540
Additional common stock equivalents (non-vested stock) used to calculate diluted earnings per share		—			—			—			—
Additional common stock equivalents (stock options) used to calculate diluted earnings per share		184			—			8,214			—
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share		10,859,703			11,763,582			10,884,071			11,932,540

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Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (USD $)	6 Months Ended
	Mar. 31, 2014
Cash dividends declared, per share	$ 0.12
Retained Earnings [Member]
Cash dividends declared, per share	$ 0.12

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Consolidated Balance Sheet (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Statement Of Financial Position [Abstract]
Allowance for loan losses	$ 8,662	$ 8,064
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	18,133,095	18,133,095
Common stock, shares outstanding	11,885,778	11,945,564
Treasury stock, shares outstanding	6,247,317	6,187,531

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Net Periodic Benefit Cost-Defined Benefit Plan

6 Months Ended

Mar. 31, 2014

Compensation And Retirement Disclosure [Abstract]

Net Periodic Benefit Cost-Defined Benefit Plan

9. Net Periodic Benefit Cost-Defined Benefit Plan

For a detailed disclosure on the Bank’s pension and employee benefits plans, please refer to Note 13 of the Company’s Consolidated Financial Statements for the year ended September 30, 2013 included in the Company’s Form 10-K.

The following table comprises the components of net periodic benefit cost for the periods ended (in thousands):

	Three Months Ended March 31,						Six Months Ended March 31,
	2014			2013			2014			2013
Service Cost	$	145		$	175		$	289		$	351
Interest Cost		190			179			381			358
Expected return on plan assets		(291	)		(259	)		(581	)		(517	)
Amortization of unrecognized loss		7			99			14			196
Net periodic benefit cost	$	51		$	194		$	103		$	388

The Bank plans to contribute $550,000 to its pension plan in 2014.

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Document and Entity Information	6 Months Ended
	Mar. 31, 2014	May 06, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Entity Registrant Name	ESSA Bancorp, Inc.
Entity Central Index Key	0001382230
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,871,478

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Equity Incentive Plan

6 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Incentive Plan

10. Equity Incentive Plan

The Company maintains the ESSA Bancorp, Inc. 2007 Equity Incentive Plan (the “Plan”). The Plan provides for a total of 2,377,326 shares of common stock for issuance upon the grant or exercise of awards. Of the shares available under the Plan, 1,698,090 may be issued in connection with the exercise of stock options and 679,236 may be issued as restricted stock. The Plan allows for the granting of non-qualified stock options (“NSOs”), incentive stock options (“ISOs”), and restricted stock. Options are granted at no less than the fair value of the Company’s common stock on the date of the grant.

Certain officers, employees and outside directors were granted in aggregate 1,140,469 NSOs; 317,910 ISOs; and 590,320 shares of restricted stock on May 23, 2008. Certain officers were granted in aggregate 30,000 shares of restricted stock on April 1, 2013. In accordance with generally accepted accounting principles, the Company expenses the fair value of all share-based compensation grants over the requisite service periods.

The Company classifies share-based compensation for employees and outside directors within “Compensation and employee benefits” in the consolidated statement of income to correspond with the same line item as compensation paid. Additionally, generally accepted accounting principles require the Company to report: (1) the expense associated with the grants as an adjustment to operating cash flows and (2) any benefits of realized tax deductions in excess of previously recognized tax benefits on compensation expense as a financing cash flow.

Stock options vest over a five-year service period and expire ten years after grant date. The Company recognizes compensation expense for the fair values of these awards, which vest on a straight-line basis over the requisite service period of the awards.

The 2008 restricted shares vest over a five-year service period. The 2013 restricted stock shares vest over an 18-month service period. The product of the number of shares granted and the grant date market price of the Company’s common stock determines the fair value of restricted shares under the Company’s restricted stock plan. The Company recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period for the entire award.

For the six months ended March 31, 2014 and 2013, the Company recorded $122,000 and $1.1 million of share-based compensation expense, respectively, comprised of restricted stock expense of $122,000 for the March 31, 2014 period and stock option expense of $344,000 and restricted stock expense of $711,000 for the March 31, 2013 period. Expected future compensation expense relating to the 13,334 restricted shares at March 31, 2014, is $97,000 over the remaining vesting period of 0.5 years.

The following is a summary of the Company’s stock option activity and related information for its option grants for the six month period ended March 31, 2014.

	Number of Stock Options		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding, September 30, 2013		1,458,379	$	12.35		4.67	$	—
Granted		—		—		—		—
Exercised		—		—		—		—
Forfeited		—		—		—		—
Outstanding, March 31, 2014		1,458,379	$	12.35		4.17	$	—
Exercisable at March 31, 2014		1,458,379	$	12.35		4.17	$	—

The following is a summary of the status of the Company’s restricted stock as of March 31, 2014, and changes therein during the six month period then ended:

	Number of Restricted Stock		Weighted- average Grant Date Fair Value
Nonvested at September 30, 2013		14,995	$	10.94
Granted		—		—
Vested		1,661		10.94
Forfeited		—		—
Nonvested at March 31, 2014		13,334	$	10.94

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Consolidated Statement of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
INTEREST INCOME
Loans receivable, including fees	$ 9,843	$ 11,041	$ 20,366	$ 23,278
Investment securities:
Taxable	1,523	1,558	3,050	3,188
Exempt from federal income tax	72	73	145	127
Other investment income	85	18	144	47
Total interest income	11,523	12,690	23,705	26,640
INTEREST EXPENSE
Deposits	1,906	1,848	3,894	3,819
Short-term borrowings	27	46	50	82
Other borrowings	652	912	1,332	2,136
Total interest expense	2,585	2,806	5,276	6,037
NET INTEREST INCOME	8,938	9,884	18,429	20,603
Provision for loan losses	750	850	1,500	1,850
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	8,188	9,034	16,929	18,753
NONINTEREST INCOME
Service fees on deposit accounts	722	711	1,514	1,518
Services charges and fees on loans	104	268	289	497
Trust and investment fees	230	196	441	411
Gain on sale of investments, net	236	708	236	738
Gain on sale of loans, net		81		415
Earnings on Bank-owned life insurance	225	248	453	474
Insurance commissions	227	232	420	407
Other	8	14	26	24
Total noninterest income	1,752	2,458	3,379	4,484
NONINTEREST EXPENSE
Compensation and employee benefits	4,357	5,068	8,665	9,624
Occupancy and equipment	1,065	1,030	1,983	1,979
Professional fees	498	592	907	904
Data processing	769	805	1,449	1,468
Advertising	114	145	220	255
Federal Deposit Insurance Corporation (FDIC) premiums	235	293	464	478
Gain on foreclosed real estate	(93)	(172)	(51)	(398)
Merger related costs	88		346
Amortization of intangible assets	237	249	474	499
Other	614	780	1,175	1,486
Total noninterest expense	7,884	8,790	15,632	16,295
Income before income taxes	2,056	2,702	4,676	6,942
Income taxes	554	662	1,170	2,023
NET INCOME	$ 1,502	$ 2,040	$ 3,506	$ 4,919
Earnings per share
Basic	$ 0.14	$ 0.17	$ 0.32	$ 0.41
Diluted	$ 0.14	$ 0.17	$ 0.32	$ 0.41
Dividends per share	$ 0.07	$ 0.05	$ 0.12	$ 0.10

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Recent Accounting Pronouncements:

6 Months Ended

Mar. 31, 2014

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements:

4. Recent Accounting Pronouncements:

In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The amendments in this Update affect the scope, measurement, and disclosure requirements for investment companies under U.S. GAAP. The amendments do all of the following: 1. Change the approach to the investment company assessment in Topic 946, clarify the characteristics of an investment company, and provide comprehensive guidance for assessing whether an entity is an investment Company. 2. Require an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting. 3. Require the following additional disclosures: (a) the fact that the entity is an investment company and is applying the guidance in Topic 946, (b) information about changes, if any, in an entity’s status as an investment company, and (c) information about financial support provided or contractually required to be provided by an investment company to any of its investees. The amendments in this Update are effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. This ASU is not expected to have a significant impact on the Company’s financial statements.

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements.

In January 2014, FASB issued ASU 2014-01, Investments – Equity Method and Join Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This ASU is not expected to have a significant impact on the Company’s financial statements.

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Use of Estimates in the Preparation of Financial Statements

6 Months Ended

Mar. 31, 2014

Text Block [Abstract]

Use of Estimates in the Preparation of Financial Statements

3. Use of Estimates in the Preparation of Financial Statements

The accounting principles followed by the Company and its subsidiaries and the methods of applying these principles conform to U.S. generally accepted accounting principles (“GAAP”) and to general practice within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the Consolidated Balance Sheet date and related revenues and expenses for the period. Actual results could differ significantly from those estimates.

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Recent Accounting Pronouncements: (Policies)

6 Months Ended

Mar. 31, 2014

Accounting Changes And Error Corrections [Abstract]

Financial Services Investment Companies

In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The amendments in this Update affect the scope, measurement, and disclosure requirements for investment companies under U.S. GAAP. The amendments do all of the following: 1. Change the approach to the investment company assessment in Topic 946, clarify the characteristics of an investment company, and provide comprehensive guidance for assessing whether an entity is an investment Company. 2. Require an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting. 3. Require the following additional disclosures: (a) the fact that the entity is an investment company and is applying the guidance in Topic 946, (b) information about changes, if any, in an entity’s status as an investment company, and (c) information about financial support provided or contractually required to be provided by an investment company to any of its investees. The amendments in this Update are effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. This ASU is not expected to have a significant impact on the Company’s financial statements.

Income Taxes

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements.

Investments

In January 2014, FASB issued ASU 2014-01, Investments – Equity Method and Join Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. This ASU is not expected to have a significant impact on the Company’s financial statements.

Receivables Troubled Debt Restructurings

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This ASU is not expected to have a significant impact on the Company’s financial statements.

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Fair Value Measurement

6 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurement

11. Fair Value Measurement

The following disclosures show the hierarchal disclosure framework associated within the level of pricing observations utilized in measuring assets and liabilities at fair value. The definition of fair value maintains the exchange price notion in earlier definitions of fair value but focuses on the exit price of the asset or liability. The exit price is the price that would be received to sell the asset or paid to transfer the liability adjusted for certain inherent risks and restrictions. Expanded disclosures are also required about the use of fair value to measure assets and liabilities.

The following table presents information about the Company’s securities, other real estate owned and impaired loans measured at fair value as of March 31, 2014 and September 30, 2013 and indicates the fair value hierarchy of the valuation techniques utilized by the Bank to determine such fair value:

	Fair Value Measurement at March 31, 2014
Fair Value Measurements Utilized for the Company’s Financial Assets (in thousands):	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balances as of     March 31, 2014
Securities available-for-sale measured on a recurring basis
Mortgage backed securities	$	—	$	217,249	$	—	$	217,249
Obligations of states and political subdivisions		—		23,106		—		23,106
U.S. government agencies		—		47,841		—		47,841
Corporate obligations		—		13,300		—		13,300
Trust-preferred securities		—		3,716		1,830		5,546
Other debt securities		—		5,262		—		5,262
Equity securities-financial services		2,025		—		—		2,025
Total debt and equity securities	$	2,025	$	310,474	$	1,830	$	314,329
Foreclosed real estate owned measured on a non-recurring basis	$	—	$	—	$	2,168	$	2,168
Impaired loans measured on a non-recurring basis	$	—	$	—	$	37,610	$	37,610

	Fair Value Measurement at September 30, 2013
Fair Value Measurements Utilized for the Company’s Financial Assets (in thousands):	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balances as of September 30, 2013
Securities available-for-sale measured on a recurring basis
Mortgage backed securities	$	—	$	217,837	$	—	$	217,837
Obligations of states and political subdivisions		—		23,909		—		23,909
U.S. government agencies		—		52,520		—		52,520
Corporate obligations		—		12,773		—		12,773
Trust-preferred securities		—		3,614		1,800		5,414
Other debt securities		—		1,154		—		1,154
Equity securities-financial services		2,015		—		—		2,015
Total debt and equity securities	$	2,015	$	311,807	$	1,800	$	315,622
Foreclosed real estate owned measured on a non-recurring basis	$	—	$	—	$	2,111	$	2,111
Impaired loans measured on a non-recurring basis	$	—	$	—	$	36,407	$	36,407

The following table presents a summary of changes in the fair value of the Company’s Level III investments for the periods ended March 31, 2014 and March 31, 2013.

	Fair Value Measurement Using Significant Unobservable Inputs (Level III)
	Three months ended
	March 31, 2014			March 31, 2013
Beginning balance	$	1,840		$	1,760
Purchases, sales, issuances, settlements, net		—			—
Total unrealized gain:
Included in earnings		—
Included in other comprehensive income		(10	)		—
Transfers in and/or out of Level III		—			—
	$	1,830		$	1,760

	Fair Value Measurement Using Significant Unobservable Inputs (Level III)
	Six months ended
	March 31, 2014		March 31, 2013
Beginning balance	$	1,800	$	1,740
Purchases, sales, issuances, settlements, net		—		—
Total unrealized gain:
Included in earnings		—		—
Included in other comprehensive income		30		20
Transfers in and/or out of Level III		—		—
	$	1,830	$	1,760

Each financial asset and liability is identified as having been valued according to a specified level of input, 1, 2 or 3. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Bank has the ability to access at the measurement date. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset, either directly or indirectly. Level 2 inputs include quoted prices for similar assets in active markets, and inputs other than quoted prices that are observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy, within which the fair value measurement in its entirety falls, has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset.

The measurement of fair value should be consistent with one of the following valuation techniques: market approach, income approach, and/or cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). For example, valuation techniques consistent with the market approach often use market multiples derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment, considering factors specific to the measurement (qualitative and quantitative). Valuation techniques consistent with the market approach include matrix pricing. Matrix pricing is a mathematical technique used principally to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on a security’s relationship to other benchmark quoted securities. Most of the securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quoted market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Securities reported at fair value utilizing Level 1 inputs are limited to actively traded equity securities whose market price is readily available from the New York Stock Exchange or the NASDAQ exchange. Foreclosed real estate is measured at fair value, less cost to sell at the date of foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less cost to sell. Income and expenses from operations and changes in valuation allowance are included in the net expenses from foreclosed real estate. Impaired loans are reported at fair value utilizing level three inputs. For these loans, a review of the collateral is conducted and an appropriate allowance for loan losses is allocated to the loan. At March 31, 2014, 233 impaired loans with a carrying value of $38.5 million were reduced by specific valuation allowance totaling $919,000 resulting in a net fair value of $37.6 million based on Level 3 inputs. At September 30, 2013, 233 impaired loans with a carrying value of $36.4 million were reduced by a specific valuation totaling $819,000 resulting in a net fair value of $37.6 million based on Level 3 inputs.

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

	Quantitative Information about Level 3 Fair Value Measurements
(unaudited, in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
March 31, 2014:
Impaired loans		37,610	Appraisal of collateral(1)	Appraisal adjustments(2)	0% to 30% (23.4%)
Foreclosed real estate owned		2,168	Appraisal of collateral(1), (3)	Appraisal adjustments(2)	20% to 40% (22.0%)

	Quantitative Information about Level 3 Fair Value Measurements
(unaudited, in thousands)	Fair Value Estimate		Valuation Techniques	Unobservable Input	Range
September 30, 2013:
Impaired loans		36,407	Appraisal of collateral(1)	Appraisal adjustments(2)	0% to 30% (23.5%)
Foreclosed real estate owned		2,111	Appraisal of collateral(1), (3)	Appraisal adjustments(2)	0% to 30% (20.4%)

(1) Fair value is generally determined through independent appraisals of 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 of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

(3) Includes qualitative adjustments by management and estimated liquidation expenses.

The fair values presented represent the Company’s best estimate of fair value using the methodologies discussed below.

Disclosures about Fair Value of Financial Instruments

The fair values presented represent the Company’s best estimate of fair value using the methodologies discussed below.

	March 31, 2014
	Carrying Value		Level I		Level II		Level III		Total Fair Value
Financial assets:
Cash and cash equivalents	$	40,662	$	40,662	$	—	$	—	$	40,662
Certificates of deposit		1,767		—		1,767		—		1,767
Investment and mortgage backed securities available for sale		314,329		2,025		310,474		1,830		314,329
Loans receivable, net		906,356		—		—		924,826		924,826
Accrued interest receivable		4,191		4,191		—		—		4,191
FHLB stock		10,353		10,353		—		—		10,353
Mortgage servicing rights		363		—		—		363		363
Bank owned life insurance		29,250		29,250		—		—		29,250
Financial liabilities:
Deposits	$	998,430	$	421,997	$	—	$	579,601		1,001,598
Short-term borrowings		38,000		38,000		—		—		38,000
Other borrowings		145,550		—		—		145,673		145,673
Advances by borrowers for taxes and insurance		8,870		8,870		—		—		8,870
Accrued interest payable		809		809		—		—		809

	September 30, 2013
	Carrying Value		Level I		Level II		Level III		Total Fair Value
Financial assets:
Cash and cash equivalents	$	26,648	$	26,648	$	—	$	—	$	26,648
Certificates of deposit		1,767		—		1,767		—		1,767
Investment and mortgage backed securities available for sale		315,622		2,015		311,807		1,800		315,622
Loans receivable, net		928,230		—		—		951,120		951,120
Accrued interest receivable		4,413		4,413		—		—		4,413
FHLB stock		9,415		9,415		—		—		9,415
Mortgage servicing rights		382		—		—		382		382
Bank owned life insurance		28,797		28,797		—		—		28,797
Financial liabilities:
Deposits	$	1,041,059	$	406,890	$	—	$	638,510		1,045,400
Short-term borrowings		23,000		23,000		—		—		23,000
Other borrowings		129,260		—		—		124,504		124,504
Advances by borrowers for taxes and insurance		4,962		4,962		—		—		4,962
Accrued interest payable		833		833		—		—		833

Financial instruments are defined as cash, evidence of an ownership interest in an entity, or a contract which creates an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms.

Fair value is defined as the amount at which a financial instrument could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale. If a quoted market price is available for a financial instrument, the fair value would be calculated based upon the market price per trading unit of the instrument.

If no readily available market exists, the fair value for financial instruments should be based upon management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses, and other factors as determined through various option pricing formulas or simulation modeling.

As many of these assumptions result from judgments made by management based upon estimates which are inherently uncertain, the resulting values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition, changes in the assumptions on which the values are based may have a significant impact on the resulting estimated values.

As certain assets and liabilities, such as deferred tax assets, premises and equipment, and many other operational elements of the Bank, are not considered financial instruments but have value, this fair value of financial instruments would not represent the full market value of the Company.

The Company employed simulation modeling in determining the fair value of financial instruments for which quoted market prices were not available based upon the following assumptions:

Cash and Cash Equivalents, Accrued Interest Receivable, Short-Term Borrowings, Advances by Borrowers for Taxes and Insurance, and Accrued Interest Payable

The fair value approximates the current book value.

Bank-Owned Life Insurance

The fair value is equal to the cash surrender value of the Bank-owned life insurance.

Investment and Mortgage-Backed Securities Available for Sale and FHLB Stock

The fair value of investment and mortgage-backed securities available for sale is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities. Since the FHLB stock is not actively traded on a secondary market and held exclusively by member financial institutions, the fair market value approximates the carrying amount.

Loans Receivable

The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.

Mortgage Servicing Rights

The Company utilizes a third party provider to estimate the fair value of certain loan servicing rights. Fair value for the purpose of this measurement is defined as the amount at which the asset could be exchanged in a current transaction between willing parties, other than in a forced liquidation.

Deposit Liabilities

The fair values disclosed for demand, savings, and money market deposit accounts are valued at the amount payable on demand as of quarter-end. Fair values for time deposits are estimated using a discounted cash flow calculation that applies contractual costs currently being offered in the existing portfolio to current market rates being offered for deposits of similar remaining maturities.

Other Borrowings

Fair values for other borrowings are estimated using a discounted cash flow calculation that applies contractual costs currently being offered in the existing portfolio to current market rates being offered for other borrowings of similar remaining maturities.

Commitments to Extend Credit

These financial instruments are generally not subject to sale, and fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, are not considered material for disclosure.

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Loans Receivable, Net and Allowance for Loan Losses

6 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Loans Receivable, Net and Allowance for Loan Losses

7. Loans Receivable, Net and Allowance for Loan Losses

Loans receivable consist of the following (in thousands):

	March 31, 2014		September 30, 2013
Held for investment:
Real Estate Loans:
Residential	$	662,233	$	686,651
Construction		2,853		2,288
Commercial		156,717		159,469
Commercial		10,612		10,125
Obligations of states and political subdivisions		40,344		33,445
Home equity loans and lines of credit		39,953		41,923
Other		2,306		2,393
		915,018		936,294
Less allowance for loan losses		8,662		8,064
Net loans	$	906,356	$	928,230

Included in the March 31, 2014 balances are loans acquired from FNCB Bank, as of the acquisition date as follows:

Real estate loans:
Residential	$	933
Home equity loans and lines of credit		77
Other		20
Total loans	$	1,030

	Total Loans		Individually Evaluated for Impairment		Loans Acquired with Deteriorated Credit Quality		Collectively Evaluated for Impairment
March 31, 2014
Real Estate Loans:
Residential	$	662,233	$	12,634	$	159	$	649,440
Construction		2,853		—		—		2,853
Commercial		156,717		18,517		5,955		132,245
Commercial		10,612		545		443		9,624
Obligations of states and political subdivisions		40,344		—		—		40,344
Home Equity loans and lines of credit		39,953		272		4		39,677
Other		2,306		—		—		2,306
Total	$	915,018	$	31,968	$	6,561	$	876,489

	Total Loans		Individually Evaluated for Impairment		Loans Acquired with Deteriorated Credit Quality		Collectively Evaluated for Impairment
September 30, 2013
Real Estate Loans:
Residential	$	686,651	$	14,018	$	271	$	672,362
Construction		2,288		—		—		2,288
Commercial		159,469		15,478		6,355		137,636
Commercial		10,125		220		502		9,403
Obligations of states and political subdivisions		33,445		—		—		33,445
Home Equity loans and lines of credit		41,923		379		3		41,541
Other		2,393		—		—		2,393
Total	$	936,294	$	30,095	$	7,131	$	899,068

We maintain a loan review system that allows for a periodic review of our loan portfolio and the early identification of potential impaired loans. Such system takes into consideration, among other things, delinquency status, size of loans, type and market value of collateral and financial condition of the borrowers. Specific loan loss allowances are established for identified losses based on a review of such information. A loan evaluated for impairment is considered to be impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans identified as impaired are evaluated independently. We do not aggregate such loans for evaluation purposes. Impairment is measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral-dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential mortgage loans for impairment disclosures, unless such loans are part of a larger relationship that is impaired, or are classified as a troubled debt restructuring.

A loan is considered to be a troubled debt restructuring (“TDR”) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates that are less than the current market rate for new obligations with similar risk. TDR loans that are in compliance with their modified terms and that yield a market rate may be removed from the TDR status after a period of performance.

The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired.

	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Recorded Investment		Interest Income Recognized
March 31, 2014
With no specific allowance recorded:
Real Estate Loans
Residential	$	8,715	$	10,089	$	—	$	9,855	$	150
Construction		—		—		—		—		—
Commercial		21,328		22,592		—		20,041		374
Commercial		988		1,019		—		1,002		6
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		239		558		—		319		2
Other		—		—		—		—		—
Total		31,270		34,258		—		31,217		532
With an allowance recorded:
Real Estate Loans
Residential		4,078		4,387		618		3,235		58
Construction		—		—		—		—		—
Commercial		3,144		3,196		263		2,355		—
Commercial		—		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		37		45		38		6		—
Other		—		—		—		—		—
Total		7,259		7,628		919		5,596		58
Total:
Real Estate Loans
Residential		12,793		14,476		618		13,090		208
Construction		—		—		—		—		—
Commercial		24,472		25,788		263		22,396		374
Commercial		988		1,019		—		1,002		6
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		276		603		38		325		2
Other		—		—		—		—		—
Total Impaired Loans	$	38,529	$	41,886	$	919	$	36,813	$	590

	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Recorded Investment		Interest Income Recognized
September 30, 2013
With no specific allowance recorded:
Real Estate Loans
Residential	$	11,251	$	13,013	$	—	$	9,716	$	159
Construction		—		—		—		—		—
Commercial		18,711		20,258		—		20,751		615
Commercial		722		731		—		1,034		9
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		382		683		—		373		3
Other		—		—		—		18		—
Total		31,066		34,685		—		31,892		786
With an allowance recorded:
Real Estate Loans
Residential		3,038		3,221		518		2,655		74
Construction		—		—		—		—		—
Commercial		3,122		3,178		301		2,839
Commercial		—		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		—		—		—		—
Other		—		—		—		—		—
Total		6,160		6,399		819		5,494		74
Total:
Real Estate Loans
Residential		14,289		16,234		518		12,371		233
Construction		—		—		—		—		—
Commercial		21,833		23,436		301		23,590		615
Commercial		722		731		—		1,034		9
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		382		683		—		373		3
Other		—		—		—		18		—
Total Impaired Loans	$	37,226	$	41,084	$	819	$	37,386	$	860

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. All loans greater than 90 days past due are considered Substandard. The portion of any loan that represents a specific allocation of the allowance for loan losses is placed in the Doubtful category. 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 Bank 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 bankruptcy, repossession, or death occurs to raise awareness of a possible credit event. The Bank’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 Bank’s Commercial Loan Officers perform an annual review of all commercial relationships $250,000 or greater. Confirmation of the appropriate risk grade is included in the review on an ongoing basis. The Bank engages an external consultant to conduct loan reviews on at least a semi-annual basis. Generally, the external consultant reviews commercial relationships greater than $500,000 and/or all criticized relationships. Detailed reviews, including plans for resolution, are performed on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance.

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 internal risk rating system as of March 31, 2014 and September 30, 2013 (in thousands):

March 31, 2014	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate loans	$	126,234	$	7,470	$	22,707	$	306	$	156,717
Commercial		9,670		276		666		—		10,612
Obligations of states and political subdivisions		40,344		—		—		—		40,344
Total	$	176,248	$	7,746	$	23,373	$	306	$	207,673

September 30, 2013	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate loans	$	129,799	$	9,440	$	20,230	$	—	$	159,469
Commercial		9,466		436		223		—		10,125
Obligations of states and political subdivisions		33,445		—		—		—		33,445
Total	$	172,710	$	9,876	$	20,453	$	—	$	203,039

All other loans are underwritten and structured using standardized criteria and characteristics, primarily payment performance, and are normally risk rated and monitored collectively on a monthly basis. These are typically loans to individuals in the consumer categories and are delineated as either performing or non-performing. The following tables present the risk ratings in the consumer categories of performing and non-performing loans at March 31, 2014 and September 30, 2013 (in thousands):

	Performing		Non-performing		Total
March 31, 2014
Real estate loans:
Residential	$	653,430	$	8,803	$	662,233
Construction		2,853		—		2,853
Home Equity loans and lines of credit		39,563		390		39,953
Other		2,306		—		2,306
Total	$	698,152	$	9,193	$	707,345

	Performing		Non-performing		Total
September 30, 2013
Real estate loans:
Residential	$	675,706	$	10,945	$	686,651
Construction		2,288		—		2,288
Home Equity loans and lines of credit		41,584		339		41,923
Other		2,393		—		2,393
Total	$	721,971	$	11,284	$	733,255

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 as of March 31, 2014 and September 30, 2013 (in thousands):

	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non- Accrual		Total Loans
March 31, 2014
Real estate loans
Residential	$	649,512	$	2,834	$	1,084	$	—	$	8,803	$	12,721	$	662,233
Construction		2,853		—		—		—		—		—		2,853
Commercial		144,540		493		—		—		11,684		12,177		156,717
Commercial		9,093		199		—		—		1,320		1,519		10,612
Obligations of states and political subdivisions		40,344		—		—		—		—		—		40,344
Home equity loans and lines of credit		39,163		365		35		—		390		790		39,953
Other		2,299		7		—		—		—		7		2,306
Total	$	887,804	$	3,898	$	1,119	$	—	$	22,197	$	27,214	$	915,018

	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non- Accrual		Total Loans
September 30, 2013
Real estate loans
Residential	$	671,850	$	2,866	$	990	$	—	$	10,945	$	14,801	$	686,651
Construction		2,288		—		—		—		—		—		2,288
Commercial		146,062		2,589				—		10,818		13,407		159,469
Commercial		8,948		—		—		—		1,177		1,177		10,125
Obligations of states and political subdivisions		33,445		—		—		—		—		—		33,445
Home equity loans and lines of credit		41,380		127		77		—		339		543		41,923
Other		2,336		57		—		—		—		57		2,393
Total	$	906,309	$	5,639	$	1,067	$	—	$	23,279	$	29,985	$	936,294

Our allowance for loan losses is maintained at a level necessary to absorb loan losses that are both probable and reasonably estimable. Management, in determining the allowance for loan losses, considers the losses inherent in its loan portfolio and changes in the nature and volume of loan activities, along with the general economic and real estate market conditions. Our allowance for loan losses consists of two elements: (1) an allocated allowance, which comprises allowances established on specific loans and class allowances based on historical loss experience and current trends, and (2) an allocated allowance based on general economic conditions and other risk factors in our markets and portfolios. We maintain a loan review system, which allows for a periodic review of our loan portfolio and the early identification of potential impaired loans. Such system takes into consideration, among other things, delinquency status, size of loans, type and market value of collateral and financial condition of the borrowers. General loan loss allowances are based upon a combination of factors including, but not limited to, actual loan loss experience, composition of the loan portfolio, current economic conditions, management’s judgment and losses which are probable and reasonably estimable. The allowance is increased through provisions charged against current earnings and recoveries of previously charged-off loans. Loans that are determined to be uncollectible are charged against the allowance. While management uses available information to recognize probable and reasonably estimable loan losses, future loss provisions may be necessary, based on changing economic conditions. Payments received on impaired loans generally are either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. The allowance for loan losses as of March 31, 2014 is maintained at a level that represents management’s best estimate of losses inherent in the loan portfolio, and such losses were both probable and reasonably estimable.

In addition, the FDIC and the Pennsylvania Department of Banking, as an integral part of their examination process, have periodically reviewed our allowance for loan losses. The banking regulators may require that we recognize additions to the allowance based on its analysis and review of information available to it at the time of its examination.

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 ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL.

The following tables summarize changes in the primary segments of the ALL for the three and six month periods ending March 31, 2014:

	Real Estate Loans								Commercial Loans		Obligations of States and Political Subdivisions		Home Equity Loans and Lines of Credit		Other Loans			Unallocated		Total
	Residential			Construction		Commercial
ALL balance at December 31, 2013	$	5,903		$	26	$	1,011		$	330	$	106	$	491	$	22		$	480	$	8,369
Charge-offs		(536	)		—		(11	)		—		—		—		—			—		(547	)
Recoveries		1			—		83			1		—		—		5			—		90
Provision		552			—		(80	)		38		—		9		(1	)		232		750
ALL balance at March 31, 2014	$	5,920		$	26	$	1,003		$	369	$	106	$	500	$	26		$	712	$	8,662

	Real Estate Loans								Commercial Loans			Obligations of States and Political Subdivisions			Home Equity Loans and Lines of Credit			Other Loans			Unallocated			Total
	Residential			Construction		Commercial
ALL balance at December 31, 2012	$	5,549		$	8	$	784		$	384		$	116		$	377		$	133		$	204		$	7,555
Charge-offs		(598	)		—		(108	)		—			—			(32	)		(6	)		—			(744	)
Recoveries		4			—		1			0			—			5			—			—			10
Provision		836			20		160			(34	)		(10	)		146			(108	)		(160	)		850
ALL balance at March 31, 2013	$	5,791		$	28	$	837		$	350		$	106		$	496		$	19		$	44		$	7,671

	Real Estate Loans								Commercial Loans			Obligations of States and Political Subdivisions			Home Equity Loans and Lines of Credit			Other Loans			Unallocated		Total
	Residential			Construction		Commercial
ALL balance at September 30, 2013	$	5,787		$	20	$	946		$	337		$	130		$	430		$	21		$	393	$	8,064
Charge-offs		(923	)		—		(50	)		(48	)		—			(63	)		—			—		(1,084	)
Recoveries		78			—		83			12			—			—			9			—		182
Provision		978			6		24			68			(24	)		133			(4	)		319		1,500
ALL balance at March 31, 2014	$	5,920		$	26	$	1,003		$	369		$	106		$	500		$	26		$	712	$	8,662

	Real Estate Loans									Commercial Loans			Obligations of States and Political Subdivisions			Home Equity Loans and Lines of Credit			Other Loans			Unallocated			Total
	Residential			Construction			Commercial
ALL balance at September 30, 2012	$	5,401		$	29		$	699		$	474		$	127		$	499		$	22		$	51		$	7,302
Charge-offs		(1,243	)		—			(214	)		0			—			(67	)		(6	)		—			(1,530	)
Recoveries		41			0			2			0			0			6			0			0			49
Provision		1,592			(1	)		350			(124	)		(21	)		58			3			(7	)		1,850
ALL balance at March 31, 2013	$	5,791		$	28		$	837		$	350		$	106		$	496		$	19		$	44		$	7,671

The following table summarizes the primary segments of the ALL, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of March 31, 2014 (in thousands):

	Real Estate Loans						Commercial Loans		Obligations of States and Political Subdivisions		Home Equity Loans and Lines of Credit		Other Loans		Unallocated		Total
	Residential		Construction		Commercial
Individually evaluated for impairment	$	618	$	—	$	263	$	—	$	—	$	38	$	—	$	—	$	919
Collectively evaluated for impairment		5,302		26		740		369		106		462		26		712		7,743
ALL balance at March 31, 2014	$	5,920	$	26	$	1,003	$	369	$	106	$	500	$	26	$	712	$	8,662

	Real Estate Loans						Commercial Loans		Obligations of States and Political Subdivisions		Home Equity Loans and Lines of Credit		Other Loans		Unallocated		Total
	Residential		Construction		Commercial
Individually evaluated for impairment	$	518	$	—	$	301	$	—	$	—	$	—	$	—	$	—	$	819
Collectively evaluated for impairment		5,269		20		645		337		130		430		21		393		7,245
ALL balance at September 30, 2013	$	5,787	$	20	$	946	$	337	$	130	$	430	$	21	$	393	$	8,064

The allowance for loan losses is based on estimates, and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. The Company allocated increased provisions to the residential real estate, commercial loans, home equity loans and lines of credit segments for the six month period ending March 31, 2014 due to increased charge off activity and impairment evaluations in those segments. Despite the above allocations, the allowance for loan losses is general in nature and is available to absorb losses from any loan segment.

The following is a summary of troubled debt restructuring granted during the three and six months ended March 31, 2014 and 2013.

	For the Three Months Ended March 31, 2014
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		3	$	473	$	473
Construction		—		—		—
Commercial		1		197		197
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—
Total		4	$	670	$	670

Of the four new troubled debt restructurings granted for the three months ended March 31, 2014, three loans totaling $473,000 were granted terms and rate concessions and one loan totaling $197,000 was granted terms concessions.

	For the Three Months Ended March 31, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		3	$	471	$	471
Construction		—		—		—
Commercial		—		—		—
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—
Total		3	$	471	$	471

Of the three new troubled debt restructurings granted for the three months ended March 31, 2013, one loan totaling $397,000 was granted terms and rate concessions and two loans totaling $74,000 were granted terms concessions.

	For the Six Months Ended March 31, 2014
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		7	$	1,066	$	1,066
Construction		—		—		—
Commercial		1		197		197
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—
Total		8	$	1,263	$	1,263

Of the eight new troubled debt restructurings granted for the six months ended March 31, 2014, five loans totaling $604,000 were granted terms and rate concessions and three loans totaling $660,000 were granted terms concessions.

	For the Six Months Ended March 31, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		4	$	600	$	604
Construction		—		—		—
Commercial		—		—		—
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—
Total		4	$	600	$	604

Of the four new troubled debt restructurings granted for the six months ended March 31, 2013, two loans totaling $527,000 were granted terms and rate concessions and two loans totaling $74,000 were granted terms concessions. The following is a summary of troubled debt restructurings that have subsequently defaulted within one year of modification, (in thousands).

	For the Three Months Ended March 31,
	2014				2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential	$	—	$	—	$	1	$	77
Construction		—		—		—		—
Commercial		—		—		—		—
Commercial		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—
Home equity loans and lines of credit		—		—		1		5
Other		—		—		—		—
Total	$	—	$	—	$	2	$	82

	For the Six Months Ended March 31,
	2014				2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential	$	—	$	—	$	1	$	77
Construction		—		—		—		—
Commercial		—		—		—		—
Commercial		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—
Home equity loans and lines of credit		—		—		1		5
Other		—		—		—		—
Total	$	—	$	—	$	2	$	82

XML

Fair Value Measurement - Summary of Additional Quantitative Information about Assets Measured at Fair Value on a Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Mar. 31, 2014	Sep. 30, 2013
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Estimate	$ 37,610	$ 36,407
Unobservable Input	Appraisal adjustments (2)	Appraisal adjustments (2)
Fair value input appraisal adjustments	23.40%	23.50%
Impaired Loans [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value input appraisal adjustments	0.00%	0.00%
Impaired Loans [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value input appraisal adjustments	30.00%	30.00%
Foreclosed Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Estimate	$ 2,168	$ 2,111
Unobservable Input	Appraisal adjustments (2)	Appraisal adjustments (2)
Fair value input appraisal adjustments	22.00%	20.40%
Foreclosed Real Estate Owned [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value input appraisal adjustments	20.00%	0.00%
Foreclosed Real Estate Owned [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value input appraisal adjustments	40.00%	30.00%
Appraisal of Collateral [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation Techniques	Appraisal of collateral (1)	Appraisal of collateral (1)
Appraisal of Collateral [Member] | Foreclosed Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation Techniques	Appraisal of collateral (1), (3)	Appraisal of collateral (1), (3)

XML

Investment Securities

6 Months Ended

Mar. 31, 2014

Investments Debt And Equity Securities [Abstract]

Investment Securities

5. Investment Securities

The amortized cost and fair value of investment securities available for sale are summarized as follows (in thousands):

	March 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
Fannie Mae	$	119,520	$	1,232	$	(1,719	)	$	119,033
Freddie Mac		64,581		586		(1,389	)		63,778
Governmental National Mortgage Association		31,602		170		(205	)		31,567
Other mortgage-backed securities		2,883		—		(12	)		2,871
Total mortgage-backed securities		218,586		1,988		(3,325	)		217,249
Obligations of states and political subdivisions		22,810		722		(426	)		23,106
U.S. government agency securities		48,276		192		(627	)		47,841
Corporate obligations		13,199		197		(96	)		13,300
Trust-preferred securities		4,990		556		—			5,546
Other debt securities		5,275		19		(32	)		5,262
Total debt securities		313,136		3,674		(4,506	)		312,304
Equity securities - financial services		2,025		—		—			2,025
Total	$	315,161	$	3,674	$	(4,506	)	$	314,329
	September 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
Fannie Mae	$	114,927	$	1,691	$	(1,595	)	$	115,023
Freddie Mac		60,111		838		(1,252	)		59,697
Governmental National Mortgage Association		39,692		289		(230	)		39,751
Other mortgage-backed securities		3,385		—		(19	)		3,366
Total mortgage-backed securities		218,115		2,818		(3,096	)		217,837
Obligations of states and political subdivisions		23,754		654		(499	)		23,909
U.S. government agency securities		52,775		225		(480	)		52,520
Corporate obligations		12,756		186		(169	)		12,773
Trust-preferred securities		4,943		471		—			5,414
Other debt securities		1,147		7		—			1,154
Total debt securities		313,490		4,361		(4,244	)		313,607
Equity securities - financial services		2,025		—		(10	)		2,015
Total	$	315,515	$	4,361	$	(4,254	)	$	315,622

The amortized cost and fair value of debt securities at March 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands):

	Available For Sale
	Amortized Cost		Fair Value
Due in one year or less	$	1,622	$	1,635
Due after one year through five years		45,608		45,754
Due after five years through ten years		63,886		63,928
Due after ten years		202,020		200,987
Total	$	313,136	$	312,304

For the three and six months ended March 31, 2014, the Company realized gross gains of $247,000 and gross losses of $11,000 on proceeds from the sale of investment securities of $8.1 million. For the three months ended March 31, 2013, the Company realized gross gains of $725,000 and gross losses of $17,000 on proceeds from the sale of investment securities of $38.1 million. For the six months ended March 31, 2013, the Company realized gross gains of $756,000 and gross losses of $18,000 on proceeds from the sale of investment securities of $39.2 million.

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Unrealized Losses on Securities

6 Months Ended

Mar. 31, 2014

Text Block [Abstract]

Unrealized Losses on Securities

6. Unrealized Losses on Securities

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position (in thousands):

	March 31, 2014
	Number of Securities		Less than Twelve Months					Twelve Months or Greater					Total
			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fannie Mae		34	$	39,925	$	(989	)	$	15,211	$	(730	)	$	55,136	$	(1,719	)
Freddie Mac		28		37,382		(972	)		10,072		(417	)		47,454		(1,389	)
Governmental National Mortgage Association		8		5,004		(29	)		6,747		(176	)		11,751		(205	)
Other mortgage-backed securities		3		559		(2	)		2,312		(10	)		2,871		(12	)
Obligations of states and political subdivisions		6		2,883		(117	)		4,752		(309	)		7,635		(426	)
U.S. government agency securities		13		33,970		(627	)		—		—			33,970		(627	)
Corporate obligations		6		5,415		(96	)		—		—			5,415		(96	)
Other debt securities		3		4,096		(32	)		—		—			4,096		(32	)
Total		101	$	129,234	$	(2,864	)	$	39,094	$	(1,642	)	$	168,328	$	(4,506	)

	September 30, 2013
	Number of Securities		Less than Twelve Months					Twelve Months or Greater					Total
			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fannie Mae		30	$	47,814	$	(1,589	)	$	1,057	$	(6	)	$	48,871	$	(1,595	)
Freddie Mac		20		32,781		(1,252	)		—		—			32,781		(1,252	)
Governmental National Mortgage Association		6		10,301		(230	)		—		—			10,301		(230	)
Other mortgage-backed securities		3		3,366		(19	)		—		—			3,366		(19	)
Obligations of states and political subdivisions		7		8,064		(499	)		—		—			8,064		(499	)
U.S. government agency securities		10		30,084		(479	)		999		(1	)		31,083		(480	)
Corporate obligations		5		5,042		(169	)		—		—			5,042		(169	)
Equity securities-financial services		1		1,990		(10	)		—		—			1,990		(10	)
Total		82	$	139,442	$	(4,247	)	$	2,056	$	(7	)	$	141,498	$	(4,254	)

The Company’s investment securities portfolio contains unrealized losses on securities, including mortgage-related instruments issued or backed by the full faith and credit of the United States government, or generally viewed as having the implied guarantee of the U.S. government, debt obligations of a U.S. state or political subdivision and corporate debt obligations.

The Company reviews its position quarterly and has asserted that at March 31, 2014, the declines outlined in the above table represent temporary declines and the Company would not be required to sell the security before its anticipated recovery in market value.

The Company has concluded that any impairment of its investment securities portfolio is not other than temporary but is the result of interest rate changes that are not expected to result in the non-collection of principal and interest during the period.

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Deposits

6 Months Ended

Mar. 31, 2014

Banking And Thrift [Abstract]

Deposits

8. Deposits

Deposits consist of the following major classifications (in thousands):

	March 31, 2014		September 30, 2013
Non-interest bearing demand accounts	$	62,262	$	58,795
NOW accounts		98,946		99,857
Money market accounts		141,409		138,049
Savings and club accounts		119,380		110,189
Certificates of deposit		576,433		634,169
Total	$	998,430	$	1,041,059

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Acquisition of FNCB Branch - Condensed Statement Reflecting Values Assigned to Net Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Net assets acquired:
Goodwill resulting from FNCB purchase	$ 10,259	$ 8,817
First National Community Bank [Member]
Business Acquisition [Line Items]
Net cash received	4,640
Net assets acquired:
Cash	11
Loans receivable and accrued interest receivable	1,033
Premises and equipment, net	1,626
Certificates of deposits	(3,069)
Deposits other than certificates of deposits	(5,683)
Net assets acquired, Total	6,082
Goodwill resulting from FNCB purchase	$ 1,442

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Acquisition of FNCB Branch - Additional Information (Detail) (USD $)	6 Months Ended
	Mar. 31, 2014
Business Acquisition [Line Items]
Loan portfolio without evidence of deterioration	$ 1,000,000
Fair value of loan portfolio	1,000,000
First National Community Bank [Member]
Business Acquisition [Line Items]
Total purchase price related to acquisition	$ 4,640,000

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Nature of Operations and Basis of Presentation - Additional Information (Detail)	Mar. 31, 2014
Collaboration Arrangement Disclosure [Abstract]
Percentage ownership of wholly owned subsidiary	100.00%

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Deposits - Schedule of Deposits by Major Classifications (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Sep. 30, 2013
Banking And Thrift [Abstract]
Non-interest bearing demand accounts	$ 62,262	$ 58,795
NOW accounts	98,946	99,857
Money market accounts	141,409	138,049
Savings and club accounts	119,380	110,189
Certificates of deposit	576,433	634,169
Total	$ 998,430	$ 1,041,059

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Acquisition of FNCB Branch

6 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Acquisition of FNCB Branch

13. ACQUISITION OF FNCB BRANCH

On January 24, 2014, the Company closed on a purchase transaction pursuant to which ESSA Bancorp, Inc. acquired a branch facility, customer deposits, and loans of First National Community Bank (FNCB), the subsidiary of First National Community Bancorp, Inc., in a cash transaction. The acquired branch is located in the Monroe County, Pennsylvania market. Under the terms of the agreement, the Company acquired the all of the branch facilities, customer deposits, and loans of FNCB and received net cash of $4.6 million.

The acquired assets and assumed liabilities were measured at fair values. Management made significant estimates and exercised significant judgment in accounting for the acquisition. Management measured loan fair values based on loan file reviews (including borrower financial statements or tax returns), appraised collateral values, expected cash flows and historical loss factors of FNCB. Real estate acquired through foreclosure was primarily valued based on appraised collateral values.

The business combination resulted in the acquisition of loans without evidence of credit quality deterioration. FNCB’s loans were fair valued by discounting both expected principal and interest cash flows using an observable discount rate for similar instruments that a market participant would consider in determining fair value. Additionally, consideration was given to management’s best estimates of default rates and payment speeds. At acquisition, FNCB’s loan portfolio without evidence of deterioration totaled $1.0 million and was recorded at a fair value of $1.0 million.

The following condensed statement reflects the values assigned to FNCB’s net assets as of the acquisitions date:

Net cash received	$	4,640
Net assets acquired:
Cash	$	11
Loans receivable and accrued interest receivable		1,033
Premises and equipment, net		1,626
Certificates of deposits		(3,069	)
Deposits other than certificates of deposits		(5,683	)
		6,082
Goodwill resulting from FNCB purchase	$	1,442

Supplemental pro forma financial information related to the FNCB acquisition has not been provided as it would be impracticable to do so. Historical financial information regarding the acquired branch is not accessible and thus the amounts would require estimates so significant as to render the disclosure irrelevant.

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Unrealized Losses on Securities (Tables)

6 Months Ended

Mar. 31, 2014

Text Block [Abstract]

Schedule of Gross Unrealized Losses and Fair Value

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position (in thousands):

	March 31, 2014
	Number of Securities		Less than Twelve Months					Twelve Months or Greater					Total
			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fannie Mae		34	$	39,925	$	(989	)	$	15,211	$	(730	)	$	55,136	$	(1,719	)
Freddie Mac		28		37,382		(972	)		10,072		(417	)		47,454		(1,389	)
Governmental National Mortgage Association		8		5,004		(29	)		6,747		(176	)		11,751		(205	)
Other mortgage-backed securities		3		559		(2	)		2,312		(10	)		2,871		(12	)
Obligations of states and political subdivisions		6		2,883		(117	)		4,752		(309	)		7,635		(426	)
U.S. government agency securities		13		33,970		(627	)		—		—			33,970		(627	)
Corporate obligations		6		5,415		(96	)		—		—			5,415		(96	)
Other debt securities		3		4,096		(32	)		—		—			4,096		(32	)
Total		101	$	129,234	$	(2,864	)	$	39,094	$	(1,642	)	$	168,328	$	(4,506	)

	September 30, 2013
	Number of Securities		Less than Twelve Months					Twelve Months or Greater					Total
			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fannie Mae		30	$	47,814	$	(1,589	)	$	1,057	$	(6	)	$	48,871	$	(1,595	)
Freddie Mac		20		32,781		(1,252	)		—		—			32,781		(1,252	)
Governmental National Mortgage Association		6		10,301		(230	)		—		—			10,301		(230	)
Other mortgage-backed securities		3		3,366		(19	)		—		—			3,366		(19	)
Obligations of states and political subdivisions		7		8,064		(499	)		—		—			8,064		(499	)
U.S. government agency securities		10		30,084		(479	)		999		(1	)		31,083		(480	)
Corporate obligations		5		5,042		(169	)		—		—			5,042		(169	)
Equity securities-financial services		1		1,990		(10	)		—		—			1,990		(10	)
Total		82	$	139,442	$	(4,247	)	$	2,056	$	(7	)	$	141,498	$	(4,254	)

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Loans Receivable, Net and Allowance for Loan Losses - Summary of Troubled Debt Restructuring Granted (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014 Contract	Mar. 31, 2013 Contract	Mar. 31, 2014 Contract	Mar. 31, 2013 Contract
Real Estate Loans [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts	3	3	7	4
Pre-Modification Outstanding Recorded Investment	$ 473	$ 471	$ 1,066	$ 600
Post-Modification Outstanding Recorded Investment	473	471	1,066	604
Real Estate Loans [Member] | Construction [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Real Estate Loans [Member] | Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts	1		1
Pre-Modification Outstanding Recorded Investment	197		197
Post-Modification Outstanding Recorded Investment	197		197
Commercial Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Obligations of States and Political Subdivisions [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Home Equity Loans and Lines of Credit [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Other [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts	4	3	8	4
Pre-Modification Outstanding Recorded Investment	670	471	1,263	600
Post-Modification Outstanding Recorded Investment	$ 670	$ 471	$ 1,263	$ 604

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Loans Receivable, Net and Allowance for Loan Losses - Summary of Loans Receivable (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012
Real Estate Loans:
Total Loans	$ 915,018		$ 936,294
Less allowance for loan losses	8,662	8,369	8,064	7,671	7,555	7,302
Net loans	906,356		928,230
Residential Real Estate Loans [Member]
Real Estate Loans:
Total Loans	662,233		686,651
Less allowance for loan losses	5,920	5,903	5,787	5,791	5,549	5,401
Construction Real Estate Loans [Member]
Real Estate Loans:
Total Loans	2,853		2,288
Less allowance for loan losses	26	26	20	28	8	29
Commercial Real Estate Loans [Member]
Real Estate Loans:
Total Loans	156,717		159,469
Less allowance for loan losses	1,003	1,011	946	837	784	699
Commercial Loans [Member]
Real Estate Loans:
Total Loans	10,612		10,125
Less allowance for loan losses	369	330	337	350	384	474
Obligations of States and Political Subdivisions [Member]
Real Estate Loans:
Total Loans	40,344		33,445
Less allowance for loan losses	106	106	130	106	116	127
Home Equity Loans and Lines of Credit [Member]
Real Estate Loans:
Total Loans	39,953		41,923
Less allowance for loan losses	500	491	430	496	377	499
Other [Member]
Real Estate Loans:
Total Loans	2,306		2,393
Less allowance for loan losses	26	22	21	19	133	22
First National Community Bank [Member]
Real Estate Loans:
Home equity loans and lines of credit	1,030
First National Community Bank [Member] | Residential Real Estate Loans [Member]
Real Estate Loans:
Home equity loans and lines of credit	933
First National Community Bank [Member] | Home Equity Loans and Lines of Credit [Member]
Real Estate Loans:
Home equity loans and lines of credit	77
First National Community Bank [Member] | Other [Member]
Real Estate Loans:
Home equity loans and lines of credit	$ 20

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Consolidated Statement of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 1,502	$ 2,040	$ 3,506	$ 4,919
Investment securities available for sale:
Unrealized holding gain (loss)	1,333	(946)	(703)	(1,877)
Tax effect	(453)	321	239	638
Reclassification of gains recognized in net income	(236)	(708)	(236)	(738)
Tax effect	80	241	80	251
Net of tax amount	724	(1,092)	(620)	(1,726)
Pension plan adjustment:
Related to actuarial losses and prior service cost	7	99	14	196
Tax effect	(2)	(32)	(5)	(65)
Net of tax amount	5	67	9	131
Total other comprehensive income (loss)	729	(1,025)	(611)	(1,595)
Comprehensive income	$ 2,231	$ 1,015	$ 2,895	$ 3,324

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Earnings per Share

6 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings per Share

2. Earnings per Share

The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation for the three and six month periods ended March 31, 2014 and 2013.

	Three months ended						Six months ended
	March 31, 2014			March 31, 2013			March 31, 2014			March 31, 2013
Weighted-average common shares outstanding		18,133,095			18,133,095			18,133,095			18,133,095
Average treasury stock shares		(6,236,798	)		(5,261,181	)		(6,213,543	)		(5,081,861	)
Average unearned ESOP shares		(1,024,111	)		(1,069,387	)		(1,029,831	)		(1,075,107	)
Average unearned non-vested shares		(12,667	)		(38,945	)		(13,864	)		(43,587	)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share		10,859,519			11,763,582			10,875,857			11,932,540
Additional common stock equivalents (non-vested stock) used to calculate diluted earnings per share		—			—			—			—
Additional common stock equivalents (stock options) used to calculate diluted earnings per share		184			—			8,214			—
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share		10,859,703			11,763,582			10,884,071			11,932,540

At March 31, 2014 and 2013 there were options to purchase 317,910 and 1,458,379 shares, respectively, of common stock outstanding at a price of $12.35 per share that were not included in the computation of diluted EPS because to do so would have been anti-dilutive. At March 31, 2014 and 2013 there were 8,886 and 19,110 shares, respectively, of nonvested stock outstanding at prices of $10.94 and $12.35 per share, respectively that were not included in the computation of diluted EPS because to do so would have been anti-dilutive.

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Fair Value Measurement - Schedule of Changes in Fair Value of Level III Investments (Detail) (Significant Unobservable Inputs (Level 3) [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	$ 1,840	$ 1,760	$ 1,800	$ 1,740
Purchases, sales, issuances, settlements, net
Total unrealized gain:
Included in earnings
Included in other comprehensive income	(10)		30	20
Transfers in and/or out of Level III
Ending balance	$ 1,830	$ 1,760	$ 1,830	$ 1,760

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Loans Receivable, Net and Allowance for Loan Losses (Tables)

6 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Summary of Loans Receivable

Loans receivable consist of the following (in thousands):

	March 31, 2014		September 30, 2013
Held for investment:
Real Estate Loans:
Residential	$	662,233	$	686,651
Construction		2,853		2,288
Commercial		156,717		159,469
Commercial		10,612		10,125
Obligations of states and political subdivisions		40,344		33,445
Home equity loans and lines of credit		39,953		41,923
Other		2,306		2,393
		915,018		936,294
Less allowance for loan losses		8,662		8,064
Net loans	$	906,356	$	928,230

Summary of Loans Receivable

Included in the March 31, 2014 balances are loans acquired from FNCB Bank, as of the acquisition date as follows:

Real estate loans:
Residential	$	933
Home equity loans and lines of credit		77
Other		20
Total loans	$	1,030

Schedule of Loans Evaluated for Impairment

Total Loans			Individually Evaluated for Impairment			Loans Acquired with Deteriorated Credit Quality			Collectively Evaluated for Impairment
March 31, 2014
Real Estate Loans:
Residential	$	662,233		$	12,634		$	159		$	649,440
Construction		2,853			—			—			2,853
Commercial		156,717			18,517			5,955			132,245
Commercial		10,612			545			443			9,624
Obligations of states and political subdivisions		40,344			—			—			40,344
Home Equity loans and lines of credit		39,953			272			4			39,677
Other		2,306			—			—			2,306
Total	$	915,018		$	31,968		$	6,561		$	876,489

	Total Loans		Individually Evaluated for Impairment		Loans Acquired with Deteriorated Credit Quality		Collectively Evaluated for Impairment
September 30, 2013
Real Estate Loans:
Residential	$	686,651	$	14,018	$	271	$	672,362
Construction		2,288		—		—		2,288
Commercial		159,469		15,478		6,355		137,636
Commercial		10,125		220		502		9,403
Obligations of states and political subdivisions		33,445		—		—		33,445
Home Equity loans and lines of credit		41,923		379		3		41,541
Other		2,393		—		—		2,393
Total	$	936,294	$	30,095	$	7,131	$	899,068

Schedule of Investment and Unpaid Principal Balances for Impaired Loans

The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired.

	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Recorded Investment		Interest Income Recognized
March 31, 2014
With no specific allowance recorded:
Real Estate Loans
Residential	$	8,715	$	10,089	$	—	$	9,855	$	150
Construction		—		—		—		—		—
Commercial		21,328		22,592		—		20,041		374
Commercial		988		1,019		—		1,002		6
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		239		558		—		319		2
Other		—		—		—		—		—
Total		31,270		34,258		—		31,217		532
With an allowance recorded:
Real Estate Loans
Residential		4,078		4,387		618		3,235		58
Construction		—		—		—		—		—
Commercial		3,144		3,196		263		2,355		—
Commercial		—		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		37		45		38		6		—
Other		—		—		—		—		—
Total		7,259		7,628		919		5,596		58
Total:
Real Estate Loans
Residential		12,793		14,476		618		13,090		208
Construction		—		—		—		—		—
Commercial		24,472		25,788		263		22,396		374
Commercial		988		1,019		—		1,002		6
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		276		603		38		325		2
Other		—		—		—		—		—
Total Impaired Loans	$	38,529	$	41,886	$	919	$	36,813	$	590

	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Recorded Investment		Interest Income Recognized
September 30, 2013
With no specific allowance recorded:
Real Estate Loans
Residential	$	11,251	$	13,013	$	—	$	9,716	$	159
Construction		—		—		—		—		—
Commercial		18,711		20,258		—		20,751		615
Commercial		722		731		—		1,034		9
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		382		683		—		373		3
Other		—		—		—		18		—
Total		31,066		34,685		—		31,892		786
With an allowance recorded:
Real Estate Loans
Residential		3,038		3,221		518		2,655		74
Construction		—		—		—		—		—
Commercial		3,122		3,178		301		2,839
Commercial		—		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		—		—		—		—
Other		—		—		—		—		—
Total		6,160		6,399		819		5,494		74
Total:
Real Estate Loans
Residential		14,289		16,234		518		12,371		233
Construction		—		—		—		—		—
Commercial		21,833		23,436		301		23,590		615
Commercial		722		731		—		1,034		9
Obligations of states and political subdivisions		—		—		—		—		—
Home equity loans and lines of credit		382		683		—		373		3
Other		—		—		—		18		—
Total Impaired Loans	$	37,226	$	41,084	$	819	$	37,386	$	860

Classes of the Loan Portfolio, 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 internal risk rating system as of March 31, 2014 and September 30, 2013 (in thousands):

March 31, 2014	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate loans	$	126,234	$	7,470	$	22,707	$	306	$	156,717
Commercial		9,670		276		666		—		10,612
Obligations of states and political subdivisions		40,344		—		—		—		40,344
Total	$	176,248	$	7,746	$	23,373	$	306	$	207,673

September 30, 2013	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate loans	$	129,799	$	9,440	$	20,230	$	—	$	159,469
Commercial		9,466		436		223		—		10,125
Obligations of states and political subdivisions		33,445		—		—		—		33,445
Total	$	172,710	$	9,876	$	20,453	$	—	$	203,039

Schedule of Performing or Nonperforming Loans

The following tables present the risk ratings in the consumer categories of performing and non-performing loans at March 31, 2014 and September 30, 2013 (in thousands):

	Performing		Non-performing		Total
March 31, 2014
Real estate loans:
Residential	$	653,430	$	8,803	$	662,233
Construction		2,853		—		2,853
Home Equity loans and lines of credit		39,563		390		39,953
Other		2,306		—		2,306
Total	$	698,152	$	9,193	$	707,345

	Performing		Non-performing		Total
September 30, 2013
Real estate loans:
Residential	$	675,706	$	10,945	$	686,651
Construction		2,288		—		2,288
Home Equity loans and lines of credit		41,584		339		41,923
Other		2,393		—		2,393
Total	$	721,971	$	11,284	$	733,255

Classes of the Loan Portfolio Summarized by the Aging Categories

The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of March 31, 2014 and September 30, 2013 (in thousands):

	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non- Accrual		Total Loans
March 31, 2014
Real estate loans
Residential	$	649,512	$	2,834	$	1,084	$	—	$	8,803	$	12,721	$	662,233
Construction		2,853		—		—		—		—		—		2,853
Commercial		144,540		493		—		—		11,684		12,177		156,717
Commercial		9,093		199		—		—		1,320		1,519		10,612
Obligations of states and political subdivisions		40,344		—		—		—		—		—		40,344
Home equity loans and lines of credit		39,163		365		35		—		390		790		39,953
Other		2,299		7		—		—		—		7		2,306
Total	$	887,804	$	3,898	$	1,119	$	—	$	22,197	$	27,214	$	915,018

	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due and still accruing		Non-Accrual		Total Past Due and Non- Accrual		Total Loans
September 30, 2013
Real estate loans
Residential	$	671,850	$	2,866	$	990	$	—	$	10,945	$	14,801	$	686,651
Construction		2,288		—		—		—		—		—		2,288
Commercial		146,062		2,589				—		10,818		13,407		159,469
Commercial		8,948		—		—		—		1,177		1,177		10,125
Obligations of states and political subdivisions		33,445		—		—		—		—		—		33,445
Home equity loans and lines of credit		41,380		127		77		—		339		543		41,923
Other		2,336		57		—		—		—		57		2,393
Total	$	906,309	$	5,639	$	1,067	$	—	$	23,279	$	29,985	$	936,294

Summary of Primary Segments of ALL

The following tables summarize changes in the primary segments of the ALL for the three and six month periods ending March 31, 2014:

	Real Estate Loans								Commercial Loans		Obligations of States and Political Subdivisions		Home Equity Loans and Lines of Credit		Other Loans			Unallocated		Total
	Residential			Construction		Commercial
ALL balance at December 31, 2013	$	5,903		$	26	$	1,011		$	330	$	106	$	491	$	22		$	480	$	8,369
Charge-offs		(536	)		—		(11	)		—		—		—		—			—		(547	)
Recoveries		1			—		83			1		—		—		5			—		90
Provision		552			—		(80	)		38		—		9		(1	)		232		750
ALL balance at March 31, 2014	$	5,920		$	26	$	1,003		$	369	$	106	$	500	$	26		$	712	$	8,662

	Real Estate Loans								Commercial Loans			Obligations of States and Political Subdivisions			Home Equity Loans and Lines of Credit			Other Loans			Unallocated			Total
	Residential			Construction		Commercial
ALL balance at December 31, 2012	$	5,549		$	8	$	784		$	384		$	116		$	377		$	133		$	204		$	7,555
Charge-offs		(598	)		—		(108	)		—			—			(32	)		(6	)		—			(744	)
Recoveries		4			—		1			0			—			5			—			—			10
Provision		836			20		160			(34	)		(10	)		146			(108	)		(160	)		850
ALL balance at March 31, 2013	$	5,791		$	28	$	837		$	350		$	106		$	496		$	19		$	44		$	7,671

	Real Estate Loans								Commercial Loans			Obligations of States and Political Subdivisions			Home Equity Loans and Lines of Credit			Other Loans			Unallocated		Total
	Residential			Construction		Commercial
ALL balance at September 30, 2013	$	5,787		$	20	$	946		$	337		$	130		$	430		$	21		$	393	$	8,064
Charge-offs		(923	)		—		(50	)		(48	)		—			(63	)		—			—		(1,084	)
Recoveries		78			—		83			12			—			—			9			—		182
Provision		978			6		24			68			(24	)		133			(4	)		319		1,500
ALL balance at March 31, 2014	$	5,920		$	26	$	1,003		$	369		$	106		$	500		$	26		$	712	$	8,662

	Real Estate Loans									Commercial Loans			Obligations of States and Political Subdivisions			Home Equity Loans and Lines of Credit			Other Loans			Unallocated			Total
	Residential			Construction			Commercial
ALL balance at September 30, 2012	$	5,401		$	29		$	699		$	474		$	127		$	499		$	22		$	51		$	7,302
Charge-offs		(1,243	)		—			(214	)		0			—			(67	)		(6	)		—			(1,530	)
Recoveries		41			0			2			0			0			6			0			0			49
Provision		1,592			(1	)		350			(124	)		(21	)		58			3			(7	)		1,850
ALL balance at March 31, 2013	$	5,791		$	28		$	837		$	350		$	106		$	496		$	19		$	44		$	7,671

	Real Estate Loans						Commercial Loans		Obligations of States and Political Subdivisions		Home Equity Loans and Lines of Credit		Other Loans		Unallocated		Total
	Residential		Construction		Commercial
Individually evaluated for impairment	$	618	$	—	$	263	$	—	$	—	$	38	$	—	$	—	$	919
Collectively evaluated for impairment		5,302		26		740		369		106		462		26		712		7,743
ALL balance at March 31, 2014	$	5,920	$	26	$	1,003	$	369	$	106	$	500	$	26	$	712	$	8,662

	Real Estate Loans						Commercial Loans		Obligations of States and Political Subdivisions		Home Equity Loans and Lines of Credit		Other Loans		Unallocated		Total
	Residential		Construction		Commercial
Individually evaluated for impairment	$	518	$	—	$	301	$	—	$	—	$	—	$	—	$	—	$	819
Collectively evaluated for impairment		5,269		20		645		337		130		430		21		393		7,245
ALL balance at September 30, 2013	$	5,787	$	20	$	946	$	337	$	130	$	430	$	21	$	393	$	8,064

Summary of Troubled Debt Restructuring Granted

The following is a summary of troubled debt restructuring granted during the three and six months ended March 31, 2014 and 2013.

	For the Three Months Ended March 31, 2014
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		3	$	473	$	473
Construction		—		—		—
Commercial		1		197		197
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—
Total		4	$	670	$	670

	For the Three Months Ended March 31, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		3	$	471	$	471
Construction		—		—		—
Commercial		—		—		—
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—
Total		3	$	471	$	471

	For the Six Months Ended March 31, 2014
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		7	$	1,066	$	1,066
Construction		—		—		—
Commercial		1		197		197
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—
Total		8	$	1,263	$	1,263

	For the Six Months Ended March 31, 2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential		4	$	600	$	604
Construction		—		—		—
Commercial		—		—		—
Commercial		—		—		—
Obligations of states and political subdivisions		—		—		—
Home equity loans and lines of credit		—		—		—
Other		—		—		—
Total		4	$	600	$	604

Summary of Troubled Debt Restructurings Subsequently Defaulted within One Year of Modification

The following is a summary of troubled debt restructurings that have subsequently defaulted within one year of modification, (in thousands).

	For the Three Months Ended March 31,
	2014				2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential	$	—	$	—	$	1	$	77
Construction		—		—		—		—
Commercial		—		—		—		—
Commercial		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—
Home equity loans and lines of credit		—		—		1		5
Other		—		—		—		—
Total	$	—	$	—	$	2	$	82

	For the Six Months Ended March 31,
	2014				2013
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment
Troubled Debt Restructurings
Real estate loans:
Residential	$	—	$	—	$	1	$	77
Construction		—		—		—		—
Commercial		—		—		—		—
Commercial		—		—		—		—
Obligations of states and political subdivisions		—		—		—		—
Home equity loans and lines of credit		—		—		1		5
Other		—		—		—		—
Total	$	—	$	—	$	2	$	82

XML

Investment Securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014
Available For Sale Securities Debt Maturities Amortized Cost [Abstract]
Due in one year or less, Amortized Cost	$ 1,622
Due after one year through five years, Amortized Cost	45,608
Due after five years through ten years, Amortized Cost	63,886
Due after ten years, Amortized Cost	202,020
Total, Amortized Cost	313,136
Due in one year or less, Fair Value	1,635
Due after one year through five years, Fair value	45,754
Due after five years through ten years, Fair Value	63,928
Due after ten years, Fair value	200,987
Total, Fair value	$ 312,304

XML

Accumulated Other Comprehensive Income

6 Months Ended

Mar. 31, 2014

Equity [Abstract]

Accumulated Other Comprehensive Income

12. Accumulated Other Comprehensive Income

The activity in accumulated other comprehensive income for the three and six months ended March 31, 2014 and 2013 is as follows:

	Accumulated Other Comprehensive Income/(Loss)
	Defined Benefit Pension Plan			Unrealized Gains (Losses) on Securities Available for Sale			Total
Balance at December 31, 2013	$	(1,301	)	$	(1,274	)	$	(2,575	)
Other comprehensive income before reclassifications		—			880			880
Amounts reclassified from accumulated other comprehensive income		5			(156	)		(151	)
Period change		5			724			729
Balance at March 31, 2014	$	(1,296	)	$	(550	)	$	(1,846	)
Balance at December 31, 2012	$	(4,385	)	$	5,573		$	1,188
Other comprehensive loss before reclassifications		—			(625	)		(625	)
Amounts reclassified from accumulated other comprehensive income		67			(467	)		(400	)
Period change		67			(1,092	)		(1,025	)
Balance at March 31, 2013	$	(4,318	)	$	4,481		$	163

	Accumulated Other Comprehensive Income/(Loss)
	Defined Benefit Pension Plan			Unrealized Gains (Losses) on Securities Available for Sale			Total
Balance at September 30, 2013	$	(1,306	)	$	71		$	(1,235	)
Other comprehensive loss before reclassifications		—			(464	)		(464	)
Amounts reclassified from accumulated other comprehensive income		9			(156	)		(147	)
Period change		9			(620	)		(611	)
Balance at March 31, 2014	$	(1,297	)	$	(549	)	$	(1,846	)
Balance at September 30, 2012	$	(4,450	)	$	6,208		$	1,758
Other comprehensive loss before reclassifications		—			(1,239	)		(1,239	)
Amounts reclassified from accumulated other comprehensive income		131			(487	)		(356	)
Period change		131			(1,726	)		(1,595	)
Balance at March 31, 2013	$	(4,319	)	$	4,482		$	163

	Amount Reclassified from Accumulated Other Comprehensive Income
	Accumulated Other Comprehensive Income for the Three Months Ended March 31,						Affected Line Item in the Consolidated Statement of Income
	2014			2013
Securities available for sale:
Net securities gains reclassified into earnings	$	(236	)	$	(708	)	Gain on sale of investments, net
Related income tax expense		80			241		Provision for income taxes
Net effect on accumulated other comprehensive income for the period		(156	)		(467	)	Net of tax
Defined benefit pension plan:
Amortization of net loss and prior service costs		7			99		Compensation and employee benefits
Related income tax expense	$	(2	)	$	(32	)	Provision for income taxes
Net effect on accumulated other		5			67		Net of tax
Total reclassification for the period	$	(151	)	$	(400	)	Net of tax

	Amount Reclassified from Accumulated Other Comprehensive Income
	Accumulated Other Comprehensive Income for the Six Months Ended March 31,						Affected Line Item in the Consolidated Statement of Income
	2014			2013
Securities available for sale:
Net securities gains reclassified into earnings	$	(236	)	$	(738	)	Gain on sale of investments, net
Related income tax expense		80			251		Provision for income taxes
Net effect on accumulated other comprehensive income for the period		(156	)		(487	)	Net of tax
Defined benefit pension plan:
Amortization of net loss and prior service costs		14			196		Compensation and employee benefits
Related income tax expense	$	(5	)	$	(65	)	Provision for income taxes
Net effect on accumulated other		9			131		Net of tax
Total reclassification for the period	$	(147	)	$	(356	)	Net of tax