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FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Dec. 31, 2021

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.

December 31, 2021	Total		Level 1		Level 2		Level 3
	(In thousands)
Assets:
Securities available for sale:
Mortgage-backed securities	$	12,181	$	-	$	12,181	$	-
Debt securities		-		-		-		-
Total securities available for sale		12,181		-		12,181		-
Derivative assets		164		-		164		-
Total Assets	$	12,345	$	-	$	12,345	$	-

Liabilities:
Derivative liabilities	$	164	$	-	$	164	$	-
Total Liabilities	$	164	$	-	$	164	$	-

September 30, 2021	Total		Level 1		Level 2		Level 3
	(In thousands)
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 the Company’s assets measured at fair value on a non-recurring basis at December 31, 2021 and September 30, 2021.

December 31, 2021	Total		Level 1		Level 2		Level 3
	(In thousands)

Impaired loans	$	10,506	$	-	$	-	$	10,506
Other real estate owned		649		-		-		649
Total	$	11,155	$	-	$	-	$	11,155

September 30, 2021	Total		Level 1		Level 2		Level 3
	(In thousands)

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)


December 31, 2021	Fair Value Estimate			Valuation Techniques	Unobservable Input	Range (Weighted Average)

Impaired loans		$	10,506	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	-8.0% to -42.8% (-25.0%)
Other real estate owned		$	649	Appraisal of collateral ⁽¹⁾	Liquidation expenses ⁽²⁾	-31.2% to -45.5% (-39.4%)


September 30, 2021	Fair Value Estimate			Valuation Techniques	Unobservable Input	Range (Weighted Average)

Impaired loans		$	11,134	Appraisal of collateral ⁽¹⁾	Appraisal adjustments ⁽²⁾	-8.0% to -42.8% (-23.6%)
Other real estate owned		$	636	Appraisal of collateral ⁽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

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments carried at cost or amortized cost as of December 31, 2021 and September 30, 2021. For short-term financial assets such as cash and cash equivalents and accrued interest receivable, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as interest-bearing demand, NOW, and money market savings deposits, the carrying amount is a reasonable estimate of fair value due to these products being payable on demand and having no stated maturity.

	Carrying		Fair		Fair Value Measurement Placement
	Value		Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
December 31, 2021
Financial instruments - assets
Investment securities held to maturity	$	66,467	$	65,671	$	-	$	65,671	$	-
Loans		574,266		579,562		-		-		579,562

Financial instruments - liabilities
Certificates of deposit including retirement certificates		97,002		97,937		-		97,937		-
Borrowings		21,356		21,520		-		21,520		-

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		-