LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Sep. 30, 2015

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loans

Loans at September 30, 2015 and 2014 consisted of the following:

(In thousands)	2015		2014
Real estate mortgage:
1-4 family residential	$	181,873	$	182,743
Commercial		172,995		153,896
Multifamily residential		21,647		21,286
Residential construction		19,723		14,528
Commercial construction		15,548		8,354
Land and land development		11,061		11,290
Commercial business		32,574		28,448
Consumer:
Home equity		19,423		17,903
Auto		5,452		5,619
Other consumer		2,159		2,320
Gross loans		482,455		446,387
Undisbursed portion of construction loans		(18,599)		(6,271)
Principal loan balance		463,856		440,116
Deferred loan origination fees and costs, net		(120)		10
Allowance for loan losses		(6,624)		(6,250)
Loans, net	$	457,112	$	433,876

Summary of activity for related party loans

The following is a summary of activity for related party loans for the years ended September 30, 2015 and 2014:

(In thousands)	2015		2014
Beginning balance	$	6,306	$	5,946
New loans and advances		1,950		1,897
Repayments		(2,018)		(1,431)
Reclassifications due to officer and director changes		4,838		(106)
Ending balance	$	11,076	$	6,306

Components of Recorded Investment in Loans for Each Portfolio Class

The following table provides the components of the recorded investment in loans as of September 30, 2015:

	Residential		Commercial						Land & Land		Commercial
	Real Estate		Real Estate		Multifamily		Construction		Development		Business		Consumer		Total
	(In thousands)
Recorded Investment in Loans:
Principal loan balance	$	181,873	$	172,995	$	21,647	$	16,672	$	11,061	$	32,574	$	27,034	$	463,856
Accrued interest receivable		552		454		47		23		30		95		58		1,259
Net deferred loan origination fees and costs		283		(294)		(21)		(63)		8		(28)		(5)		(120)
Recorded investment in loans	$	182,708	$	173,155	$	21,673	$	16,632	$	11,099	$	32,641	$	27,087	$	464,995
Recorded Investment in Loans as Evaluated for Impairment:
Individually evaluated for impairment	$	4,391	$	7,041	$	-	$	-	$	-	$	222	$	290	$	11,944
Collectively evaluated for impairment		177,873		166,114		21,673		16,632		11,099		32,419		26,767		452,577
Acquired with deteriorated credit quality		444		-		-		-		-		-		30		474
Recorded investment in loans	$	182,708	$	173,155	$	21,673	$	16,632	$	11,099	$	32,641	$	27,087	$	464,995

The following table provides the components of the recorded investment in loans as of September 30, 2014:

	Residential		Commercial						Land & Land		Commercial
	Real Estate		Real Estate		Multifamily		Construction		Development		Business		Consumer		Total
	(In thousands)
Recorded Investment in Loans:
Principal loan balance	$	182,743	$	153,896	$	21,286	$	16,611	$	11,290	$	28,448	$	25,842	$	440,116
Accrued interest receivable		590		384		53		44		31		111		63		1,276
Net deferred loan origination fees and costs		337		(252)		(28)		(54)		4		(9)		12		10
Recorded investment in loans	$	183,670	$	154,028	$	21,311	$	16,601	$	11,325	$	28,550	$	25,917	$	441,402
Recorded Investment in Loans as Evaluated for Impairment:
Individually evaluated for impairment	$	4,866	$	5,705	$	-	$	-	$	-	$	145	$	350	$	11,066
Collectively evaluated for impairment		178,298		148,323		21,311		16,601		11,325		28,405		25,535		429,798
Acquired with deteriorated credit quality		506		-		-		-		-		-		32		538
Recorded investment in loans	$	183,670	$	154,028	$	21,311	$	16,601	$	11,325	$	28,550	$	25,917	$	441,402

Allowance for Loan Losses

An analysis of the allowance for loan losses as of and for the year ended September 30, 2015 is as follows:

	Residential		Commercial						Land & Land		Commercial
	Real Estate		Real Estate		Multifamily		Construction		Development		Business		Consumer		Total
	(In thousands)
Changes in Allowance for Loan Losses:
Beginning balance	$	577	$	3,808	$	146	$	443	$	302	$	795	$	179	$	6,250
Provisions		109		559		10		108		67		8		(2)		859
Charge-offs		(283)		(40)		-		-		-		(126)		(144)		(593)
Recoveries		41		-		-		-		-		1		66		108
Ending balance	$	444	$	4,327	$	156	$	551	$	369	$	678	$	99	$	6,624
Ending Allowance Balance Attributable to Loans:
Individually evaluated for impairment	$	9	$	-	$	-	$	-	$	-	$	-	$	5	$	14
Collectively evaluated for impairment		435		4,327		156		551		369		678		94		6,610
Acquired with deteriorated credit quality		-		-		-		-		-		-		-		-
Ending balance	$	444	$	4,327	$	156	$	551	$	369	$	678	$	99	$	6,624

An analysis of the allowance for loan losses as of and for the year ended September 30, 2014 is as follows:

	Residential		Commercial						Land & Land		Commercial
	Real Estate		Real Estate		Multifamily		Construction		Development		Business		Consumer		Total
	(In thousands)
Changes in Allowance for Loan Losses:
Beginning balance	$	780	$	2,826	$	249	$	229	$	299	$	907	$	248	$	5,538
Provisions		47		987		(103)		214		3		122		(24)		1,246
Charge-offs		(278)		(224)		-		-		-		(234)		(136)		(872)
Recoveries		28		219		-		-		-		-		91		338
Ending balance	$	577	$	3,808	$	146	$	443	$	302	$	795	$	179	$	6,250
Ending Allowance Balance Attributable to Loans:
Individually evaluated for impairment	$	13	$	-	$	-	$	-	$	-	$	-	$	8	$	21
Collectively evaluated for impairment		564		3,808		146		443		302		795		171		6,229
Acquired with deteriorated credit quality		-		-		-		-		-		-		-		-
Ending balance	$	577	$	3,808	$	146	$	443	$	302	$	795	$	179	$	6,250

Impaired Loans Individually Evaluated for Impairment

The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2015. The Company recognized $5,000 of interest income on impaired commercial real estate loans using the cash receipts method of accounting for the year ended September 30, 2015.

			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Loans with no related allowance recorded:
Residential real estate	$	4,681	$	5,245	$	-	$	5,590	$	143
Commercial real estate		7,041		7,079		-		6,136		223
Multifamily		-		-		-		-		-
Construction		-		-		-		-		-
Land and land development		-		-		-		-		-
Commercial business		222		282		-		255		1
Consumer		210		214		-		238		6
	$	12,154	$	12,820	$	-	$	12,219	$	373
Loans with an allowance recorded:
Residential real estate	$	9	$	9	$	9	$	115	$	-
Commercial real estate		-		-		-		9		-
Multifamily		-		-		-		-		-
Construction		-		-		-		-		-
Land and land development		-		-		-		-		-
Commercial business		-		-		-		4		-
Consumer		80		80		5		90		-
	$	89	$	89	$	14	$	218	$	-
Total:
Residential real estate	$	4,690	$	5,254	$	9	$	5,705	$	143
Commercial real estate		7,041		7,079		-		6,145		223
Multifamily		-		-		-		-		-
Construction		-		-		-		-		-
Land and land development		-		-		-		-		-
Commercial business		222		282		-		259		1
Consumer		290		294		5		328		6
	$	12,243	$	12,909	$	14	$	12,437	$	373

The following table presents impaired loans individually evaluated for impairment as of and for the year ended September 30, 2014. The Company recognized $52,000 of interest income on impaired commercial real estate loans using the cash receipts method of accounting for the year ended September 30, 2014.

			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(In thousands)
Loans with no related allowance recorded:
Residential real estate	$	4,974	$	5,426	$	-	$	5,878	$	131
Commercial real estate		5,705		5,739		-		5,864		189
Multifamily		-		-		-		1,883		94
Construction		-		-		-		-		-
Land and land development		-		-		-		-		-
Commercial business		145		133		-		287		1
Consumer		255		258		-		285		6
	$	11,079	$	11,556	$	-	$	14,197	$	421
Loans with an allowance recorded:
Residential real estate	$	167	$	166	$	13	$	64	$	-
Commercial real estate		-		-		-		-		-
Multifamily		-		-		-		-		-
Construction		-		-		-		-		-
Land and land development		-		-		-		-		-
Commercial business		-		-		-		-		-
Consumer		95		95		8		97		-
	$	262	$	261	$	21	$	161	$	-
Total:
Residential real estate	$	5,141	$	5,592	$	13	$	5,942	$	131
Commercial real estate		5,705		5,739		-		5,864		189
Multifamily		-		-		-		1,883		94
Construction		-		-		-		-		-
Land and land development		-		-		-		-		-
Commercial business		145		133		-		287		1
Consumer		350		353		8		382		6
	$	11,341	$	11,817	$	21	$	14,358	$	421

Recorded Investment in Nonperforming Loans by Class of Loans

Nonperforming loans consist of nonaccrual loans and loans over 90 days past due and still accruing interest. The following table presents the recorded investment in nonperforming loans at September 30, 2015 and 2014:

	At September 30, 2015						At September 30, 2014
			Loans 90+						Loans 90+
			Days		Total				Days		Total
	Nonaccrual		Past Due		Nonperforming		Nonaccrual		Past Due		Nonperforming
	Loans		Still Accruing		Loans		Loans		Still Accruing		Loans
	(In thousands)
Residential real estate	$	1,923	$	155	$	2,078	$	2,431	$	458	$	2,889
Commercial real estate		1,855		-		1,855		1,034		-		1,034
Multifamily		-		-		-		-		-		-
Construction		-		-		-		-		-		-
Land and land development		-		-		-		-		-		-
Commercial business		210		94		304		123		-		123
Consumer		165		3		168		216		20		236
Total	$	4,153	$	252	$	4,405	$	3,804	$	478	$	4,282

Aging of Recorded Investment in Past Due Loans

The following table presents the aging of the recorded investment in past due loans at September 30, 2015:

	30-59 Days		60-89 Days		90+ Days		Total				Total
	Past Due		Past Due		Past Due		Past Due		Current		Loans
	(In thousands)
Residential real estate	$	3,635	$	1,419	$	1,530	$	6,584	$	176,124	$	182,708
Commercial real estate		1,098		113		139		1,350		171,805		173,155
Multifamily		504		-		-		504		21,169		21,673
Construction		-		-		-		-		16,632		16,632
Land and land development		253		-		-		253		10,846		11,099
Commercial business		15		-		303		318		32,323		32,641
Consumer		81		14		32		127		26,960		27,087
Total	$	5,586	$	1,546	$	2,004	$	9,136	$	455,859	$	464,995

The following table presents the aging of the recorded investment in past due loans at September 30, 2014:

	30-59 Days		60-89 Days		90+ Days		Total				Total
	Past Due		Past Due		Past Due		Past Due		Current		Loans
	(In thousands)
Residential real estate	$	4,493	$	1,639	$	1,823	$	7,955	$	175,715	$	183,670
Commercial real estate		115		54		59		228		153,800		154,028
Multifamily		297		-		-		297		21,014		21,311
Construction		-		-		-		-		16,601		16,601
Land and land development		6		205		-		211		11,114		11,325
Commercial business		259		-		123		382		28,168		28,550
Consumer		39		79		72		190		25,727		25,917
Total	$	5,209	$	1,977	$	2,077	$	9,263	$	432,139	$	441,402

Recorded Investment in Loans by Risk Category

The following table presents the recorded investment in loans by risk category as of the date indicated:

	Residential		Commercial						Land and Land		Commercial
	Real Estate		Real Estate		Multifamily		Construction		Development		Business		Consumer		Total
	(In thousands)
September 30, 2015:
Pass	$	175,662	$	160,224	$	21,673	$	16,632	$	11,079	$	32,335	$	26,793	$	444,398
Special Mention		799		5,342		-		-		-		96		13		6,250
Substandard		5,871		7,589		-		-		20		173		274		13,927
Doubtful		376		-		-		-		-		37		7		420
Loss		-		-		-		-		-		-		-		-
Total	$	182,708	$	173,155	$	21,673	$	16,632	$	11,099	$	32,641	$	27,087	$	464,995
September 30, 2014:
Pass	$	172,822	$	138,854	$	21,311	$	16,601	$	11,206	$	28,127	$	25,471	$	414,392
Special Mention		4,233		10,226		-		-		6		278		89		14,832
Substandard		6,398		4,948		-		-		113		145		350		11,954
Doubtful		217		-		-		-		-		-		7		224
Loss		-		-		-		-		-		-		-		-
Total	$	183,670	$	154,028	$	21,311	$	16,601	$	11,325	$	28,550	$	25,917	$	441,402

Recorded Investment in Troubled Debt Restructurings by Class of Loan and Accrual Status

The following table summarizes the Company’s TDRs by accrual status at September 30, 2015 and 2014. There was no specific reserve included in the allowance for loan losses related to TDRs at September 30, 2015 and 2014.

	Accruing		Nonaccrual		Total
	(In thousands)
September 30, 2015:
Residential real estate	$	2,767	$	110	$	2,877
Commercial real estate		5,186		1,523		6,709
Commercial business		12		-		12
Consumer		125		-		125
Total	$	8,090	$	1,633	$	9,723
September 30, 2014:
Residential real estate	$	2,710	$	214	$	2,924
Commercial real estate		4,671		696		5,367
Commercial business		22		-		22
Consumer		134		-		134
Total	$	7,537	$	910	$	8,447

Troubled Debt Restructurings

The following table summarizes information in regard to TDRs that were restructured during the years ended September 30, 2015 and 2014.

			Pre-		Post-
			Modification		Modification
	Number of		Principal		Principal
	Loans		Balance		Balance
			(Dollars in thousands)
September 30, 2015:
Residential real estate		2	$	165	$	172
Commercial real estate		1		1,523		1,523
Consumer		1		3		3
Total		4	$	1,691	$	1,698
September 30, 2014:
Residential real estate		6	$	326	$	397
Commercial real estate		1		716		724
Total		7	$	1,042	$	1,121