LOANS RECEIVABLE, NET (Tables)

12 Months Ended

Sep. 30, 2013

Year end loans receivable were as follows:

	September 30, 2013			September 30, 2012
	(Dollars in Thousands)

One to four family residential mortgage loans	$	82,287		$	49,134
Commercial and multi-family real estate loans		192,786			191,905
Agricultural real estate loans		29,552			19,861
Consumer loans		30,314			32,838
Commercial operating loans		16,264			16,452
Agricultural operating loans		33,750			20,981
Total Loans Receivable		384,953			331,171

Less:
Allowance for loan losses		(3,930	)		(3,971	)
Net deferred loan origination fees		(595	)		(219	)
Total Loans Receivable, Net	$	380,428		$	326,981

Annual activity in the allowance for loan losses, allowance for loan losses, and recorded investments

Annual activity in the allowance for loan losses was as follows:

Year ended September 30,	2013			2012			2011
	(Dollars in Thousands)

Beginning balance	$	3,971		$	4,926		$	5,234
Provision (recovery) for loan losses		-			1,049			278
Recoveries		179			99			521
Loan charge offs		(220	)		(2,103	)		(1,107	)
Ending balance	$	3,930		$	3,971		$	4,926

Allowance for Loan Losses and Recorded Investment in loans at September 30, 2013 and 2012 are as follows:

	1-4 Family Residential			Commercial and Multi-Family Real Estate			Agricultural Real Estate		Consumer			Commercial Operating			Agricultural Operating		Unallocated		Total

Year Ended September 30, 2013

Allowance for loan losses:
Beginning balance	$	193		$	3,113		$	1	$	3		$	49		$	-	$	612	$	3,971
Provision (recovery) for loan losses		163			(1,095	)		111		71			(63	)		267		546		-
Loan charge offs		(25	)		(194	)		-		(1	)		-			-		-		(220	)
Recoveries		2			113			-		1			63			-		-		179
Ending balance	$	333		$	1,937		$	112	$	74		$	49		$	267	$	1,158	$	3,930


Ending balance: individually evaluated for impairment	$	25		$	404		$	-	$	-		$	-		$	-	$	-	$	429
Ending balance: collectively evaluated for impairment	$	308		$	1,533		$	112	$	74		$	49		$	267	$	1,158	$	3,501

Loans:
Ending balance: individually evaluated for impairment	$	641		$	6,634		$	-	$	-		$	45		$	-	$	-	$	7,320
Ending balance: collectively evaluated for impairment	$	81,646		$	186,152		$	29,552	$	30,314		$	16,219		$	33,750	$	-	$	377,633

	1-4 Family Residential			Commercial and Multi-Family Real Estate			Agricultural Real Estate		Consumer			Commercial Operating		Agricultural Operating			Unallocated			Total

Year Ended September 30, 2012

Allowance for loan losses:
Beginning balance	$	165		$	3,901		$	-	$	16		$	36	$	67		$	741		$	4,926
Provision (recovery) for loan losses		30			1,266			1		(11	)		9		(117	)		(129	)		1,049
Loan charge offs		(3	)		(2,094	)		-		(6	)		-		-			-			(2,103	)
Recoveries		1			40			-		4			4		50			-			99
Ending balance	$	193		$	3,113		$	1	$	3		$	49	$	-		$	612		$	3,971


Ending balance: individually evaluated for impairment	$	16		$	346		$	-	$	-		$	1	$	-		$	-		$	363
Ending balance: collectively evaluated for impairment	$	177		$	2,767		$	1	$	3		$	48	$	-		$	612		$	3,608

Loans:
Ending balance: individually evaluated for impairment	$	352		$	8,815		$	-	$	1		$	17	$	-		$	-		$	9,185
Ending balance: collectively evaluated for impairment	$	48,782		$	183,090		$	19,861	$	32,837		$	16,435	$	20,981		$	-		$	321,986

Asset classification

The asset classification of loans at September 30, 2013 and 2012, which excludes loans held for sale, are as follows:

September 30, 2013
	1-4 Family Residential		Commercial and Multi-Family Real Estate		Agricultural Real Estate		Consumer		Commercial Operating		Agricultural Operating		Total

Pass	$	81,719	$	177,513	$	26,224	$	30,314	$	16,251	$	26,362	$	358,383
Watch		239		7,791		3,328		-		13		1,690		13,061
Special Mention		84		102		-		-		-		5,698		5,884
Substandard		245		7,380		-		-		-		-		7,625
Doubtful		-		-		-		-		-		-		-
	$	82,287	$	192,786	$	29,552	$	30,314	$	16,264	$	33,750	$	384,953

September 30, 2012
	1-4 Family Residential		Commercial and Multi-Family Real Estate		Agricultural Real Estate		Consumer		Commercial Operating		Agricultural Operating		Total

Pass	$	48,566	$	167,697	$	19,783	$	32,837	$	16,036	$	20,981	$	305,900
Watch		228		12,932		78		-		-		-		13,238
Special Mention		15		3,730		-		-		399		-		4,144
Substandard		295		7,546		-		1		17		-		7,859
Doubtful		30		-		-		-		-		-		30
	$	49,134	$	191,905	$	19,861	$	32,838	$	16,452	$	20,981	$	331,171

Past due loan

Past due loans at September 30, 2013 and 2012 are as follows:

September 30, 2013	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Non-Accrual Loans		Total Loans Receivable

Residential 1-4 Family	$	53	$	-	$	245	$	298	$	81,744	$	245	$	82,287
Commercial Real Estate and Multi-Family		102		-		107		209		192,150		427		192,786
Agricultural Real Estate		1,169		-		-		1,169		28,383		-		29,552
Consumer		29		21		13		63		30,251		-		30,314
Commercial Operating		-		-		-		-		16,257		7		16,264
Agricultural Operating		-		-		-		-		33,750		-		33,750
Total	$	1,353	$	21	$	365	$	1,739	$	382,535	$	679	$	384,953

September 30, 2012	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Non-Accrual Loans		Total Loans Receivable

Residential 1-4 Family	$	-	$	-	$	-	$	-	$	48,827	$	307	$	49,134
Commercial Real Estate and Multi-Family		-		-		-		-		190,482		1,423		191,905
Agricultural Real Estate		-		-		-		-		19,861		-		19,861
Consumer		21		16		63		100		32,738		-		32,838
Commercial Operating		-		-		-		-		16,434		18		16,452
Agricultural Operating		-		-		-		-		20,981		-		20,981
Total	$	21	$	16	$	63	$	100	$	329,323	$	1,748	$	331,171

Impaired loans

Impaired loans at September 30, 2013 and 2012 are as follows:

	Recorded Balance		Unpaid Principal Balance		Specific Allowance
September 30, 2013

Loans without a specific valuation allowance
Residential 1-4 Family	$	359	$	359	$	-
Commercial Real Estate and Multi-Family		4,527		4,535		-
Agricultural Real Estate		-		-		-
Consumer		-		-		-
Commercial Operating		45		60		-
Agricultural Operating		-		-		-
Total	$	4,931	$	4,954	$	-
Loans with a specific valuation allowance
Residential 1-4 Family	$	282	$	282	$	25
Commercial Real Estate and Multi-Family		2,107		2,107		404
Agricultural Real Estate		-		-		-
Consumer		-		-		-
Commercial Operating		-		-		-
Agricultural Operating		-		-		-
Total	$	2,389	$	2,389	$	429

	Recorded Balance		Unpaid Principal Balance		Specific Allowance
September 30, 2012

Loans without a specific valuation allowance
Residential 1-4 Family	$	-	$	-	$	-
Commercial Real Estate and Multi-Family		-		-		-
Agricultural Real Estate		-		-		-
Consumer		-		-		-
Commercial Operating		-		-		-
Agricultural Operating		-		-		-
Total	$	-	$	-	$	-
Loans with a specific valuation allowance
Residential 1-4 Family	$	352	$	393	$	16
Commercial Real Estate and Multi-Family		8,815		12,707		346
Agricultural Real Estate		-		-		-
Consumer		1		1		-
Commercial Operating		17		32		1
Agricultural Operating		-		-		-
Total	$	9,185	$	13,133	$	363

Cash interest collected on impaired loans was not material during the years ended September 30, 2013 and 2012.

The following table provides the average recorded investment in impaired loans for the years ended September 30, 2013 and 2012.

	Year Ended September 30,
	2013		2012
	Average Recorded Investment		Average Recorded Investment


Residential 1-4 Family	$	596	$	177
Commercial Real Estate and Multi-Family		8,480		13,534
Agricultural Real Estate		-		-
Consumer		1		4
Commercial Operating		51		74
Agricultural Operating		-		-
Total	$	9,128	$	13,789

Troubled debt restructured loans

For fiscal 2013 and 2012, the Company’s troubled debt restructurings (which involved forgiving a portion of interest or principal on any loans or making loans at a rate materially less than that of market rates) are included in the table. Troubled debt restructurings completed during the years ended September 30, 2013 and 2012 are as follows:

	Year Ended September 30, 2013						Year Ended September 30, 2012
	Number of Loans		Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance		Number of Loans		Pre-Modification Outstanding Recorded Balance		Post-Modification Outstanding Recorded Balance

Residential 1-4 Family		-	$	-	$	-		-	$	-	$	-
Commercial Real Estate and Multi-Family		-		-		-		-		-		-
Agricultural Real Estate		-		-		-		-		-		-
Consumer		-		-		-		1		1		1
Commercial Operating		-		-		-		2		45		45
Agricultural Operating		-		-		-		-		-		-
Total		-	$	-	$	-		3	$	46	$	46

The following table provides information on troubled debt restructured loans for which there was a payment default during the fiscal year ended September 30, 2013 and 2012, that had been modified during the 12-month period prior to the default:

During the Year Ended

September 30, 2013

September 30, 2012

Number of

Loans

Recorded

Investment

Number of

Loans

Recorded

Investment

Residential 1-4 Family

Commercial Real Estate and Multi-Family

Agricultural Real Estate

Consumer

Commercial Operating

Agricultural Operating

Total