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FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Jun. 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.

June 30, 2022		Total				Level 1				Level 2				Level 3
		(In thousands)
Assets:
Securities available for sale:
Mortgage-backed securities		$	10,058			$	-			$	10,058			$	-
Total securities available for sale			10,058				-				10,058				-
Derivative assets			1,622				-				1,622				-
Total Assets		$	11,680			$	-			$	11,680			$	-
Liabilities:
Derivative liabilities		$	1,622			$	-			$	1,622			$	-
Total Liabilities		$	1,622			$	-			$	1,622			$	-

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Table of Contents

September 30, 2021		Total				Level 1				Level 2				Level 3
		(In thousands)
Assets:
Securities available for sale:
Mortgage-backed securities		$	12,927			$	-			$	12,927			$	-
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 June 30, 2022 and September 30, 2021.

11

Table of Contents

June 30, 2022		Total				Level 1				Level 2				Level 3
		(In thousands)
Impaired loans		$	7,428			$	-			$	-			$	7,428
Other real estate owned			281				-				-				281
Total		$	7,709			$	-			$	-			$	7,709

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)

June 30, 2022		Fair Value Estimate				Valuation Techniques	Unobservable Input	Range (Weighted Average)
Impaired loans			$	7,428		Appraisal of collateral (1)	Appraisal adjustments (2)	-8.0% to -31.7% (-20.5%)
Other real estate owned			$	281		Appraisal of collateral (1)	Liquidation expenses (2)	-28.0% to -28.0% (-28.0%)

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 June 30, 2022 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.

12

Table of Contents

		Carrying				Fair				Fair Value Measurement Placement
		Value				Value				(Level 1)				(Level 2)				(Level 3)
		(In thousands)
June 30, 2022
Financial instruments - assets
Investment securities held to maturity		$	91,222			$	83,650			$	-			$	83,650			$	-
Loans			616,656				602,093				-				-				602,093
Financial instruments - liabilities
Certificates of deposit including retirement certificates			87,927				87,050				-				87,050				-
Borrowings			15,284				14,749				-				14,749				-
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				-

X

- 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

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-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
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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.

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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).

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