LOANS RECEIVABLE, NET AND RELATED ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Jun. 30, 2022

	June 30,			September 30,
	2022			2021
	(In thousands)

One-to-four family residential	$	208,018		$	203,019
Commercial real estate		335,384			280,848
Construction		23,152			20,350
Home equity lines of credit		15,568			17,930
Commercial business		40,573			68,719
Other		3,098			3,751
Total loans receivable		625,793			594,617
Net deferred loan costs		(632	)		(1,241	)
Allowance for loan losses		(8,505	)		(8,075	)

Total loans receivable, net	$	616,656		$	585,301

Schedule of impaired loans

The following table presents impaired loans by class, segregated by those for which a specific allowance was required and charged-off and those for which a specific allowance was not necessary at the dates presented:

					Impaired
					Loans with
	Impaired Loans with				No Specific
	Specific Allowance				Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
June 30, 2022	Investment		Allowance		Investment		Investment		Balance
	(In thousands)

One-to-four family residential	$	-	$	-	$	1,525	$	1,525	$	1,525
Commercial real estate		-		-		1,169		1,169		1,169
Construction		2,835		114		1,745		4,580		4,645
Commercial business		-		-		154		154		154
Total impaired loans	$	2,835	$	114	$	4,593	$	7,428	$	7,493

September 30, 2021

One-to-four family residential	$	-	$	-	$	2,711	$	2,711	$	2,711
Commercial real estate		-		-		2,270		2,270		2,270
Construction		2,835		224		1,745		4,580		4,645
Commercial business		-		-		1,507		1,507		1,507
Total impaired loans	$	2,835	$	224	$	8,233	$	11,068	$	11,133

The average recorded investment in impaired loans was $8.9 million and $12.6 million for the nine months ended June 30, 2022 and 2021, respectively. The Company’s impaired loans include delinquent non-accrual loans and performing Troubled Debt Restructurings (“TDRs”), as TDRs remain impaired loans until fully repaid. There were no TDRs during the nine months ended June 30, 2022 and there were two TDRs totaling $330,000 during the nine months ended June 30, 2021.

Schedule of average recorded investment in impaired loans

The following tables present the average recorded investment in impaired loans for the three and nine months ended June 30, 2022 and 2021. There was no interest income recognized on impaired loans during the periods presented.

	Three Months		Nine Months
	Ended June 30, 2022		Ended June 30, 2022
	(In thousands)

One-to-four family residential	$	1,531	$	1,760
Commercial real estate		1,174		1,516
Construction		4,580		4,580
Commercial business		829		1,055
Average investment in impaired loans	$	8,114	$	8,911

	Three Months		Nine Months
	Ended June 30, 2021		Ended June 30, 2021
	(In thousands)

One-to-four family residential	$	2,425	$	2,409
Commercial real estate		3,407		3,716
Construction		4,580		4,580
Commercial business		1,863		1,877
Average investment in impaired loans	$	12,275	$	12,582

Schedule of loan portfolio summarized by Bank's internal risk rating system

The following table presents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the Bank’s internal risk rating system at the dates presented:

			Special
	Pass		Mention		Substandard		Doubtful		Total
	(In thousands)
June 30, 2022
One-to-four family residential	$	206,685	$	985	$	348	$	-	$	208,018
Commercial real estate		335,185		199		-		-		335,384
Construction		18,572		-		4,580		-		23,152
Home equity lines of credit		15,568		-		-		-		15,568
Commercial business		40,573		-		-		-		40,573
Other		3,098		-		-		-		3,098
Total	$	619,681	$	1,184	$	4,928	$	-	$	625,793

September 30, 2021
One-to-four family residential	$	200,510	$	1,002	$	1,507	$	-	$	203,019
Commercial real estate		272,408		6,679		1,761		-		280,848
Construction		15,770		-		4,580		-		20,350
Home equity lines of credit		17,930		-		-		-		17,930
Commercial business		67,360		10		1,349		-		68,719
Other		3,751		-		-		-		3,751
Total	$	577,729	$	7,691	$	9,197	$	-	$	594,617

Schedule of aging analysis of past due loans, segregated by class of loans

Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans at the dates presented:

Table of Contents

			30-59		60-89
			Days		Days		90 Days +		Total		Non-		Total
	Current		Past Due		Past Due		Past Due		Past Due		Accrual		Loans
	(In thousands)
June 30, 2022
One-to-four family residential	$	208,018	$	-	$	-	$	-	$	-	$	-	$	208,018
Commercial real estate		335,384		-		-		-		-		-		335,384
Construction		18,572		-		-		4,580		4,580		4,580		23,152
Home equity lines of credit		15,568		-		-		-		-		-		15,568
Commercial business		40,573		-		-		-		-		-		40,573
Other		3,098		-		-		-		-		-		3,098
Total	$	621,213	$	-	$	-	$	4,580	$	4,580	$	4,580	$	625,793

September 30, 2021
One-to-four family residential	$	201,868	$	-	$	-	$	1,151	$	1,151	$	1,151	$	203,019
Commercial real estate		279,769		-		-		1,079		1,079		1,079		280,848
Construction		15,770		-		-		4,580		4,580		4,580		20,350
Home equity lines of credit		17,930		-		-		-		-		-		17,930
Commercial business		67,370		-		-		1,349		1,349		1,349		68,719
Other		3,751		-		-		-		-		-		3,751
Total	$	586,458	$	-	$	-	$	8,159	$	8,159	$	8,159	$	594,617

Schedule of activity in the allowance for loan losses by portfolio segment

The following table summarizes the ALL by loan category and the related activity for the nine months ended June 30, 2022 and 2021:

	One-to-Four									Home Equity
	Family			Commercial						Lines of			Commercial
	Residential			Real Estate			Construction			Credit			Business			Other			Unallocated			Total
	(In thousands)

Balance- September 30, 2021	$	1,136		$	3,744		$	594		$	232		$	2,046		$	15		$	308		$	8,075
Charge-offs		-			-			-			-			-			-			-			-
Recoveries		-			52			-			-			-			-			-			52
Provision (credit)		(43	)		(90	)		130			-			83			(14	)		35			101
Balance- December 31, 2021	$	1,093		$	3,706		$	724		$	232		$	2,129		$	1		$	343		$	8,228
Charge-offs		-			-			-			-			-			-			-			-
Recoveries		1			-			-			-			-			-			-			1
Provision (credit)		19			376			79			(12	)		(290	)		1			(102	)		71
Balance- March 31, 2022	$	1,113		$	4,082		$	803		$	220		$	1,839		$	2		$	241		$	8,300
Charge-offs		-			-			-			-			-			-			-			-
Recoveries		-			-			-			-			-			-			-			-
Provision (credit)		35			334			(196	)		5			(62	)		(1	)		90			205
Balance- June 30, 2022	$	1,148		$	4,416		$	607		$	225		$	1,777		$	1		$	331		$	8,505

	One-to-Four									Home Equity
	Family			Commercial						Lines of			Commercial
	Residential			Real Estate			Construction			Credit			Business		Other			Unallocated			Total
	(In thousands)

Balance- September 30, 2020	$	1,035		$	3,232		$	672		$	179		$	1,034	$	1		$	247		$	6,400
Charge-offs		-			-			-			-			-		-			-			-
Recoveries		-			-			-			-			90		-			-			90
Provision (credit)		120			176			(202	)		88			592		1			(135	)		640
Balance- December 31, 2020	$	1,155		$	3,408		$	470		$	267		$	1,716	$	2		$	112		$	7,130
Charge-offs		-			(50	)		-			-			-		-			-			(50	)
Recoveries		1			-			-			-			6		-			-			7
Provision (credit)		(29	)		351			(22	)		(10	)		30		(1	)		148			467
Balance- March 31, 2021	$	1,127		$	3,709		$	448		$	257		$	1,752	$	1		$	260		$	7,554
Charge-offs		-			-			-			-			-		-			-			-
Recoveries		-			-			-			-			-		-			-			-
Provision (credit)		(39	)		(3	)		179			9			149		(1	)		(48	)		246
Balance- June 30, 2021	$	1,088		$	3,706		$	627		$	266		$	1,901	$	-		$	212		$	7,800

Table of Contents

The following tables summarize the ALL by loan category, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of June 30, 2022 and September 30, 2021:

	One-to-Four						Home Equity
	Family		Commercial				Lines of		Commercial
	Residential		Real Estate		Construction		Credit		Business		Other		Unallocated		Total
	(In thousands)
Allowance for Loan Losses:
Balance - June 30, 2022	$	1,148	$	4,416	$	607	$	225	$	1,777	$	1	$	331	$	8,505
Individually evaluated for impairment		-		-		114		-		-		-		-		114
Collectively evaluated for impairment		1,148		4,416		493		225		1,777		1		331		8,391

Loans receivable:
Balance - June 30, 2022	$	208,018	$	335,384	$	23,152	$	15,568	$	40,573	$	3,098	$	-	$	625,793
Individually evaluated for impairment		1,525		1,169		4,580		-		154		-		-		7,428
Collectively evaluated for impairment		206,493		334,215		18,572		15,568		40,419		3,098		-		618,365

	One-to-Four						Home Equity
	Family		Commercial				Lines of		Commercial
	Residential		Real Estate		Construction		Credit		Business		Other		Unallocated		Total
	(In thousands)
Allowance for Loan Losses:
Balance - September 30, 2021	$	1,136	$	3,744	$	594	$	232	$	2,046	$	15	$	308	$	8,075
Individually evaluated for impairment		-		-		224		-		-		-		-		224
Collectively evaluated for impairment		1,136		3,744		370		232		2,046		15		308		7,851

Loans receivable:
Balance - September 30, 2021	$	203,019	$	280,848	$	20,350	$	17,930	$	68,719	$	3,751	$	-	$	594,617
Individually evaluated for impairment		2,711		2,270		4,580		-		1,507		-		-		11,068
Collectively evaluated for impairment		200,308		278,578		15,770		17,930		67,212		3,751		-		583,549

Schedule of troubled debt restructurings

	Three Months Ended June 30, 2021
	Number of		Investment Before		Investment After
	Loans		TDR Modification		TDR Modification
	(Dollars in thousands)
One-to-four family residential		1	$	112	$	124

Total		1	$	112	$	124

	Nine Months Ended June 30, 2021
	Number of		Investment Before		Investment After
	Loans		TDR Modification		TDR Modification
	(Dollars in thousands)
One-to-four family residential		2	$	330	$	373

Total		2	$	330	$	373