XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.21.1

Investment Securities | 6 Months Ended
--- | ---
Mar. 31, 2021
Investments [Abstract] |
Investment Securities | INVESTMENT SECURITIES Held to maturity and available for sale investment securities have been classified according to management’s intent and were as follows as of March 31, 2021 and September 30, 2020 (dollars in thousands):
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
March 31, 2021 |  |  |  |  |  |  |
Held to maturity |  |  |  |  |  |  |
Mortgage-backed securities ("MBS"): |  |  |  |  |  |  |
U.S. government agencies | $ | 21,888 |  |  | $ | 1,164 |  |  | $ | (9) |  |  | $ | 23,043 |
Private label residential | 5,056 |  |  | 312 |  |  | (23) |  |  | 5,345 |
U.S. Treasury and U.S. government agency securities | 9,021 |  |  | — |  |  | (68) |  |  | 8,953 |
Bank issued trust preferred securities | 500 |  |  | — |  |  | (3) |  |  | 497 |
Total | $ | 36,465 |  |  | $ | 1,476 |  |  | $ | (103) |  |  | $ | 37,838 |
Available for sale |  |  |  |  |  |  |
MBS: U.S. government agencies | $ | 69,001 |  |  | $ | 282 |  |  | $ | (99) |  |  | $ | 69,184 |
Total | $ | 69,001 |  |  | $ | 282 |  |  | $ | (99) |  |  | $ | 69,184 |
September 30, 2020 |  |  |  |  |  |  |
Held to maturity |  |  |  |  |  |  |
MBS: |  |  |  |  |  |  |
U.S. government agencies | $ | 27,161 |  |  | $ | 1,635 |  |  | $ | (3) |  |  | $ | 28,793 |
Private label residential | 229 |  |  | 307 |  |  | (1) |  |  | 535 |
Bank issued trust preferred securities | 500 |  |  | — |  |  | (1) |  |  | 499 |
Total | $ | 27,890 |  |  | $ | 1,942 |  |  | $ | (5) |  |  | $ | 29,827 |
Available for sale |  |  |  |  |  |  |
MBS: U.S. government agencies | $ | 57,797 |  |  | $ | 178 |  |  | $ | (68) |  |  | $ | 57,907 |
Total | $ | 57,797 |  |  | $ | 178 |  |  | $ | (68) |  |  | $ | 57,907 |
Held to maturity and available for sale investment securities with unrealized losses were as follows as of March 31, 2021 (dollars in thousands):
| Less Than 12 Months |  | 12 Months or Longer |  | Total
| Estimated Fair Value |  | Gross Unrealized Losses |  | Quantity |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Quantity |  | Estimated Fair Value |  | Gross Unrealized Losses
Held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MBS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agencies | $ | 2,098 |  |  | $ | (8) |  |  | 3 |  |  | $ | 34 |  |  | $ | (1) |  |  | 4 |  |  | $ | 2,132 |  |  | $ | (9) |
Private label residential | 4,836 |  |  | (23) |  |  | 1 |  |  | 2 |  |  | — |  |  | 2 |  |  | 4,838 |  |  | (23) |
U.S. Treasury and U.S. government agency securities | 8,953 |  |  | (68) |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 8,953 |  |  | (68) |
Bank issued trust preferred securities | 497 |  |  | (3) |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 497 |  |  | (3) |
Total | $ | 16,384 |  |  | $ | (102) |  |  | 8 |  |  | $ | 36 |  |  | $ | (1) |  |  | 6 |  |  | $ | 16,420 |  |  | $ | (103) |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MBS: U.S. government agencies | $ | 22,873 |  |  | $ | (99) |  |  | 12 |  |  | $ | — |  |  | $ | — |  |  | — |  |  | $ | 22,873 |  |  | $ | (99) |
Total | $ | 22,873 |  |  | $ | (99) |  |  | 12 |  |  | $ | — |  |  | $ | — |  |  | — |  |  | $ | 22,873 |  |  | $ | (99) |
Held to maturity and available for sale investment securities with unrealized losses were as follows as of September 30, 2020 (dollars in thousands):
| Less Than 12 Months |  | 12 Months or Longer |  | Total
| Estimated Fair Value |  | Gross Unrealized Losses |  | Quantity |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Quantity |  | Estimated Fair Value |  | Gross Unrealized Losses
Held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MBS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agencies | $ | 5,130 |  |  | $ | (2) |  |  | 4 |  |  | $ | 39 |  |  | $ | (1) |  |  | 4 |  |  | $ | 5,169 |  |  | $ | (3) |
Private label residential | 7 |  |  | — |  |  | 1 |  |  | 11 |  |  | (1) |  |  | 2 |  |  | 18 |  |  | (1) |
Bank issued trust preferred securities | 499 |  |  | (1) |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 499 |  |  | (1) |
Total | $ | 5,636 |  |  | $ | (3) |  |  | 6 |  |  | $ | 50 |  |  | $ | (2) |  |  | 6 |  |  | $ | 5,686 |  |  | $ | (5) |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MBS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agencies | $ | 21,464 |  |  | $ | (68) |  |  | 11 |  |  | $ | — |  |  | $ | — |  |  | — |  |  | $ | 21,464 |  |  | $ | (68) |
Total | $ | 21,464 |  |  | $ | (68) |  |  | 11 |  |  | $ | — |  |  | $ | — |  |  | — |  |  | $ | 21,464 |  |  | $ | (68) |
The Company has evaluated the investment securities in the above tables and has determined that the declines in their fair value are temporary. The unrealized losses are primarily due to changes in market interest rates and spreads in the market for mortgage-related products. The fair value of these securities is expected to recover as the securities approach their maturity dates and/or as the pricing spreads narrow on mortgage-related securities. The Company has the ability and the intent to hold the investments until the fair value recovers. Furthermore, as of March 31, 2021, management does not have the intent to sell any of the securities classified as available for sale where the estimated fair value is below the recorded value and believes that it is more likely than not that the Company will not have to sell such securities before a recovery of cost (or recorded value if previously written down). The Company bifurcates OTTI into (1) amounts related to credit losses which are recognized through earnings and (2) amounts related to all other factors which are recognized as a component of other comprehensive income (loss). To determine the component of the gross OTTI related to credit losses, the Company compared the amortized cost basis of the OTTI security to the present value of its revised expected cash flows, discounted using its pre-impairment yield. The revised expected cash flow estimates for individual securities are based primarily on an analysis of default rates, prepayment speeds and third-party analytic reports. Significant judgment by management is required in this analysis that includes, but is not limited to, assumptions regarding the collectability of principal and interest, net of related expenses, on the underlying loans. The following table presents a summary of the significant inputs utilized to measure management’s estimates of the credit loss component on OTTI securities as of March 31, 2021 and 2020:
| Range |  | Weighted
| Minimum |  | Maximum |  | Average
March 31, 2021 |  |  |  |  |
Constant prepayment rate | 6.00 | % |  | 15.00 | % |  | 13.18 | %
Collateral default rate | 1.73 | % |  | 28.92 | % |  | 13.94 | %
Loss severity rate | — | % |  | 18.93 | % |  | 5.79 | %
March 31, 2020 |  |  |  |  |
Constant prepayment rate | 6.00 | % |  | 15.00 | % |  | 10.91 | %
Collateral default rate | 1.86 | % |  | 22.47 | % |  | 10.44 | %
Loss severity rate | — | % |  | 16.34 | % |  | 4.02 | %
The following table presents the OTTI recoveries for the three and six months ended March 31, 2021 and 2020 (dollars in thousands):
| Three Months Ended March 31, 2021 |  |  |  | Three Months Ended March 31, 2020 |  |
| Held To Maturity |  |  |  | Held To Maturity |  |
Total recoveries | $ | 3 |  |  |  |  | $ | 3 |  |  |
Adjustment for portion of OTTI transferred from other comprehensive income (loss) before income taxes (1) | — |  |  |  |  | — |  |  |
Net recoveries recognized in earnings (2) | $ | 3 |  |  |  |  | $ | 3 |  |  |
| Six Months Ended March 31, 2021 |  |  |  | Six Months Ended March 31, 2020 |  |
| Held To Maturity |  |  |  | Held To Maturity |  |
Total recoveries | $ | 8 |  |  |  |  | $ | 106 |  |  |
Adjustment for portion of OTTI transferred from other comprehensive income (loss) before income taxes (1) | — |  |  |  |  | — |  |  |
Net recoveries recognized in earnings (2) | $ | 8 |  |  |  |  | $ | 106 |  |  |
_________________ (1) Represents OTTI related to all other factors. (2) Represents OTTI related to credit losses. The following table presents a roll forward of the credit loss component of held to maturity and available for sale debt securities that have been written down for OTTI with the credit loss component recognized in earnings for the six months ended March 31, 2021 and 2020 (dollars in thousands):
| Six Months Ended March 31,
| 2021 |  | 2020
Beginning balance of credit loss | $ | 885 |  |  | $ | 1,071 |
Subtractions: |  |  |
Realized losses previously recorded as credit losses | (5) |  |  | (60) |
Recovery of prior credit loss | (8) |  |  | (106) |
Ending balance of credit loss | $ | 872 |  |  | $ | 905 |
During the six months ended March 31, 2021, the Company recorded a $5,000 net realized loss (as a result of investment securities being deemed worthless) on 13 held to maturity investment securities, all of which had been recognized previously as a credit loss. During the six months ended March 31, 2020, the Company recorded a $60,000 net realized loss (as a result of investment securities being deemed worthless) on 19 held to maturity investment securities, all of which had been recognized previously as a credit loss. The recorded amount of investment securities pledged as collateral for public fund deposits, federal treasury tax and loan deposits, FHLB collateral and other non-profit organization deposits totaled $96.24 million and $81.03 million at March 31, 2021 and September 30, 2020, respectively. The contractual maturities of debt securities at March 31, 2021 were as follows (dollars in thousands). Expected maturities may differ from scheduled maturities due to the prepayment of principal or call provisions.
| Held to Maturity |  | Available for Sale
| Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
Due within one year | $ | — |  |  | $ | — |  |  | $ | 1,428 |  |  | $ | 1,421 |
Due after one year to five years | 8,230 |  |  | 8,290 |  |  | 2,829 |  |  | 2,829 |
Due after five years to ten years | 13,703 |  |  | 14,180 |  |  | 19,173 |  |  | 19,236 |
Due after ten years | 14,532 |  |  | 15,368 |  |  | 45,571 |  |  | 45,698 |
Total | $ | 36,465 |  |  | $ | 37,838 |  |  | $ | 69,001 |  |  | $ | 69,184 |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration