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FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended
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Sep. 30, 2022
Fair Value Disclosures [Abstract] |
Schedule of assets measured at fair value on a recurring basis | The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a recurring basis at September 30, 2022 and 2021:
September 30, 2022 |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets: |  | (In thousands) |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities - residential |  | $ | 107 |  |  | $ | — |  |  | $ | 107 |  |  | $ | — |
Obligations of U.S. government-sponsored enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities-residential |  |  | 9,122 |  |  |  | — |  |  |  | 9,122 |  |  |  | — |
Total securities available for sale |  | $ | 9,229 |  |  | $ | — |  |  | $ | 9,229 |  |  | $ | — |
Derivative assets |  |  | (2,487 | ) |  |  | — |  |  |  | (2,487 | ) |  |  | — |
Total assets |  | $ | 6,742 |  |  | $ | — |  |  | $ | 6,742 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities |  | $ | 2,487 |  |  | $ | — |  |  | $ | 2,487 |  |  | $ | — |
Total Liabilities |  | $ | 2,487 |  |  | $ | — |  |  | $ | 2,487 |  |  | $ | — |
September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities - residential |  | $ | 186 |  |  | $ | — |  |  | $ | 186 |  |  | $ | — |
Obligations of U.S. government-sponsored enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities-residential |  |  | 12,741 |  |  |  | — |  |  |  | 12,741 |  |  |  | — |
Total securities available for sale |  | $ | 12,927 |  |  | $ | — |  |  | $ | 12,927 |  |  | $ | — |
Derivative assets |  |  | 183 |  |  |  | — |  |  |  | 183 |  |  |  | — |
Total assets |  | $ | 13,110 |  |  | $ | — |  |  | $ | 13,110 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities |  | $ | (183 | ) |  | $ | — |  |  | $ | (183 | ) |  | $ | — |
Total Liabilities |  | $ | (183 | ) |  | $ | — |  |  | $ | (183 | ) |  | $ | — |
Schedule of assets measured at fair value on a non-recurring basis | The following tables provide the level of valuation assumptions used to determine the carrying value of our assets measured at fair value on a non-recurring basis at September 30, 2022 and 2021:
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
September 30, 2022 |  | (In thousands) |
Impaired loans |  | $ | 5,659 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,659 |
Other real estate owned |  |  | 281 |  |  |  | — |  |  |  | — |  |  |  | 281 |
Total |  | $ | 5,940 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,940 |
September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Impaired loans |  | $ | 11,134 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,134 |
Other real estate owned |  |  | 636 |  |  |  | — |  |  |  | — |  |  |  | 636 |
Total |  | $ | 11,770 |  |  | $ | — |  |  | $ | — |  |  | $ | 11,770 |
Schedule of quantitative information about assets measured at fair value on a nonrecurring bassis for which Level 3 inputs were used to determine fair value | The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands)
September 30, 2022 |  | Fair Value Estimate |  | Valuation Techniques |  | Unobservable Input |  | Range (Weighted Average)
Impaired loans |  | $ | 5,659 |  | Appraisal ofcollateral(1) |  | Appraisal adjustments (2) |  | 0% to -31.7% (-9.9%)
Other real estate owned |  | $ | 281 |  | Appraisal ofcollateral(1) |  | Liquidation expenses (2) |  | -28.0% to -28.0% (-28.0%)
85 Table of Contents
MAGYAR BANCORP, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
September 30, 2022 and 2021
Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands)
September 30, 2021 |  | Fair Value Estimate |  | Valuation Techniques |  | Unobservable Input |  | Range (Weighted Average)
Impaired loans |  | $ | 11,134 |  | Appraisal ofcollateral(1) |  | Appraisal adjustments (2) |  | -8.0% to -42.8% (-15.3%)
Other real estate owned |  | $ | 636 |  | Appraisal ofcollateral(1) |  | Liquidation expenses (2) |  | -31.2% to -45.5% (-39.4%)
| ​​(1) | Fair value is generally determined through independent appraisals for 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 and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
Schedule of the carrying amount, fair value, and placement in the fair value hierarchy of financial instruments carried at cost or amortized cost |
|  | Carrying |  |  | Fair |  |  | Fair Value Measurement Placement |
|  | Amount |  |  | Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
|  |  |  |  |  |  |  | (In thousands) |  |  |  |  |
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial instruments - assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities held-to-maturity |  | $ | 91,646 |  |  | $ | 79,914 |  |  | $ | — |  |  | $ | 79,914 |  |  | $ | — |
Loans |  |  | 619,843 |  |  |  | 592,804 |  |  |  | — |  |  |  | — |  |  |  | 592,804 |
Financial instruments - liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Certificates of deposit |  |  | 82,609 |  |  |  | 81,289 |  |  |  | — |  |  |  | 81,289 |  |  |  | — |
Borrowings |  |  | 15,625 |  |  |  | 14,762 |  |  |  | — |  |  |  | 14,762 |  |  |  | — |
September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial instruments - assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities held-to-maturity |  | $ | 57,660 |  |  | $ | 57,282 |  |  | $ | — |  |  | $ | 57,282 |  |  | $ | — |
Loans |  |  | 585,301 |  |  |  | 594,674 |  |  |  | — |  |  |  | — |  |  |  | 594,674 |
Financial instruments - liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Certificates of deposit |  |  | 116,892 |  |  |  | 118,144 |  |  |  | — |  |  |  | 118,144 |  |  |  | — |
Borrowings |  |  | 23,356 |  |  |  | 23,753 |  |  |  | — |  |  |  | 23,753 |  |  |  | — |

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique used to measure similar asset in prior period by class of asset or liability on non-recurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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