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Fair Value Measurements
 6 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
Fair value is defined under GAAP as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of three levels. These levels are:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2: Significant observable inputs other than quoted prices included within Level 1, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability based on the best information available in the circumstances.

The Company's assets measured at fair value on a recurring basis consist of investment securities available for sale and investments in equity securities. The estimated fair values of MBS are based upon market prices of similar securities or observable inputs (Level 2). The estimated fair values of mutual funds are based upon quoted market prices (Level 1).

The Company had no liabilities measured at fair value on a recurring basis at both March 31, 2021 and September 30, 2020. The Company's assets measured at estimated fair value on a recurring basis at March 31, 2021 and September 30, 2020 were as follows (dollars in thousands):
March 31, 2021Estimated Fair Value 
 Level 1Level 2Level 3Total
Available for sale investment securities    
   MBS: U.S. government agencies$— $69,184 $— $69,184 
Investments in equity securities
   Mutual funds957 — — 957 
Total$957 $69,184 $— $70,141 
September 30, 2020Estimated Fair Value 
 Level 1Level 2Level 3Total
Available for sale investment securities    
   MBS: U.S. government agencies$— $57,907 $— $57,907 
Investments in equity securities
   Mutual funds977 — — 977 
Total$977 $57,907 $— $58,884 

There were no transfers among Level 1, Level 2 and Level 3 during the six months ended March 31, 2021 and the year ended September 30, 2020.

The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP.  These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period.

The Company uses the following methods and significant assumptions to estimate fair value on a non-recurring basis:

Impaired Loans: The estimated fair value of impaired loans is calculated using the collateral value method or on a discounted cash flow basis.  The specific reserve for collateral dependent impaired loans is based on the estimated fair value of the collateral less estimated costs to sell, if applicable.  In some cases, adjustments are made to the appraised values due to various factors including age of the appraisal, age of comparables included in the appraisal and known changes in the market and in the collateral. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Investment Securities Held to Maturity: The estimated fair value of investment securities held to maturity is based upon the assumptions market participants would use in pricing the investment security.  Such assumptions include quoted market prices (Level 1), market prices of similar securities or observable inputs (Level 2) and unobservable inputs such as dealer quotes, discounted cash flows or similar techniques (Level 3).

OREO and Other Repossessed Assets, net:  OREO and other repossessed assets are recorded at estimated fair value less estimated costs to sell.  Estimated fair value is generally determined by management based on a number of factors, including third-party appraisals of estimated fair value in an orderly sale.  Estimated costs to sell are based on standard market factors.  The valuation of OREO and other repossessed assets is subject to significant external and internal judgment (Level 3).

The following table summarizes the balances of assets measured at estimated fair value on a non-recurring basis at March 31, 2021 (dollars in thousands):
 Estimated Fair Value
 Level 1Level 2Level 3
Impaired loans:   
  Commercial business loans$— $— $221 
Total impaired loans— — 221 
OREO and other repossessed assets— — 157 
Total$— $— $378 
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis as of March 31, 2021 (dollars in thousands):
  Estimated
Fair Value		 Valuation
Technique(s)		 Unobservable Input(s) Range
Impaired loans$221 Market approachAppraised value less estimated selling costsNA
OREO and other repossessed assets$157 Market approachLower of appraised value or listing price less estimated selling costsNA

The following table summarizes the balances of assets measured at estimated fair value on a non-recurring basis at September 30, 2020 (dollars in thousands):
 Estimated Fair Value
 Level 1Level 2Level 3
Impaired loans:   
Mortgage loans:   
One- to four-family$— $— $481 
  Commercial business loans— — 210 
Total impaired loans— — 691 
Investment securities – held to maturity:   
MBS - private label residential— 8 — 
OREO and other repossessed assets— — 1,050 
Total$— $8 $1,741 

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis as of September 30, 2020 (dollars in thousands):
  Estimated
Fair Value		 Valuation
Technique(s)		 Unobservable Input(s) Range
Impaired loans$691 Market approachAppraised value less estimated selling costsNA
OREO and other repossessed assets$1,050 Market approachLower of appraised value or listing price less estimated selling costsNA

GAAP requires disclosure of estimated fair values for certain financial instruments. Such estimates are subjective in nature, and significant judgment is required regarding the risk characteristics of various financial instruments at a discrete point in time. Therefore, such estimates could vary significantly if assumptions regarding uncertain factors were to change. In addition, as the Company normally intends to hold the majority of its financial instruments until maturity, it does not expect to realize many of the estimated amounts disclosed. The disclosures also do not include estimated fair value amounts for certain items which are not defined as financial instruments but for which may have significant value. The Company does not believe that it would be practicable to estimate a representative fair value for these types of items as of March 31, 2021 and September 30, 2020. Because GAAP excludes certain items from fair value disclosure requirements, any aggregation of the fair value amounts presented would not represent the underlying value of the Company. Additionally, in accordance with GAAP, the Company uses the exit price notion in calculating the fair values of financial instruments not measured at fair value on a recurring basis.
The recorded amounts and estimated fair values of financial instruments were as follows as of March 31, 2021 and September 30, 2020 (dollars in thousands):
 March 31, 2021
  Fair Value Measurements Using:
 Recorded
Amount		 Estimated Fair Value 
Level 1		 
Level 2		 
Level 3
Financial assets     
Cash and cash equivalents$433,342 $433,342 $433,342 $— $— 
CDs held for investment39,674 39,674 39,674 — — 
Investment securities105,649 107,022 8,953 97,572 497 
Investments in equity securities957 957 957 — — 
FHLB stock2,303 2,303 2,303 — — 
Other investments3,000 3,000 3,000 — — 
Loans held for sale8,455 8,714 8,714 — — 
Loans receivable, net1,030,683 1,040,302 — — 1,040,302 
     Accrued interest receivable4,471 4,471 4,471 — — 
Financial liabilities     
Certificates of deposit142,781 144,344 — — 144,344 
FHLB borrowings10,000 9,939 — — 9,939 
Accrued interest payable182 182 182 — — 
 September 30, 2020
  Fair Value Measurements Using:
 Recorded
Amount		 Estimated Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets     
Cash and cash equivalents$314,452 $314,452 $314,452 $— $— 
CDs held for investment65,545 65,545 65,545 — — 
Investment securities85,797 87,734 — 87,235 499 
Investments in equity securities977 977 977 — — 
FHLB stock1,922 1,922 1,922 — — 
Other investments3,000 3,000 3,000 — — 
Loans held for sale4,509 4,664 4,664 — — 
Loans receivable, net1,013,875 1,034,876 — — 1,034,876 
     Accrued interest receivable4,484 4,484 4,484 — — 
Financial liabilities     
Certificates of deposit158,524 160,921 — — 160,921 
FHLB borrowings10,000 10,167 — — 10,167 
Accrued interest payable274 274 274 — —