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INVESTMENT SECURITIES

12 Months Ended

Sep. 30, 2023

Investment Securities [Abstract]

INVESTMENT SECURITIES

NOTE D - INVESTMENT SECURITIES

The following table summarizes the amortized cost and fair values of securities classified as available-for-sale and held-to-maturity at September 30, 2023:

		September 30, 2023
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
		(In thousands)
Securities available-for-sale:
Obligations of U.S. government agencies:
Mortgage backed securities - residential		$	106			$	—			$	(14	)		$	92
Obligations of U.S. government-sponsored enterprises:
Mortgage-backed securities-residential			11,984				—				(1,951	)			10,033
Total securities available-for-sale		$	12,090			$	—			$	(1,965	)		$	10,125
Securities held-to-maturity:
Obligations of U.S. government agencies:
Mortgage-backed securities - residential		$	5,070			$	—			$	(850	)		$	4,220
Mortgage-backed securities - commercial			2,509				—				(16	)			2,493
Obligations of U.S. government-sponsored enterprises:
Mortgage backed securities - residential			48,086				—				(8,480	)			39,606
Debt securities			23,497				—				(1,947	)			21,550
Private label mortgage-backed securities - residential			207				—				(12	)			195
Obligations of state and political subdivisions			3,466				—				(605	)			2,861
Corporate securities			3,000				—				(197	)			2,803
Total securities held-to-maturity		$	85,835			$	—			$	(12,107	)		$	73,728
Total investment securities		$	97,925			$	—			$	(14,072	)		$	83,853

The following table summarizes the amortized cost and fair values of securities classified as available-for-sale and held-to-maturity at September 30, 2022:

		September 30, 2022
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
		(In thousands)
Securities available-for-sale:
Obligations of U.S. government agencies:
Mortgage backed securities - residential		$	118			$	—			$	(11	)		$	107
Obligations of U.S. government-sponsored enterprises:
Mortgage-backed securities-residential			11,029				—				(1,907	)			9,122
Total securities available-for-sale		$	11,147			$	—			$	(1,918	)		$	9,229
Securities held-to-maturity:
Obligations of U.S. government agencies:
Mortgage-backed securities - residential		$	5,525			$	—			$	(717	)		$	4,808
Mortgage-backed securities - commercial			631				—				—				631
Obligations of U.S. government-sponsored enterprises:
Mortgage backed securities - residential			48,961				12				(7,548	)			41,425
Debt securities			24,821				—				(2,395	)			22,426
Private label mortgage-backed securities - residential			224				—				(10	)			214
Obligations of state and political subdivisions			3,484				—				(638	)			2,846
Corporate securities			8,000				—				(436	)			7,564
Total securities held-to-maturity		$	91,646			$	12			$	(11,744	)		$	79,914
Total investment securities		$	102,793			$	12			$	(13,662	)		$	89,143

The contractual maturities of mortgage-backed securities generally exceed 10 years, however, the effective lives are expected to be shorter due to anticipated prepayments. At September 30, 2023, the available-for-sale mortgage-backed securities-residential included obligations of U.S. government agencies issued by the Government National Mortgage Association with an amortized cost of $106,000 and a fair value of $92,000 and obligations of U.S. government-sponsored enterprises issued by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation with an amortized cost of $12.0 million and a fair value of $10.0 million. At September 30, 2023, the held-to-maturity mortgage-backed securities–residential included obligations of U.S. government agencies issued by the Government National Mortgage Association with an amortized cost of $5.1 million and a fair value of $4.2 million and obligations of U.S. government-sponsored enterprises issued by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation with an amortized cost of $48.1 million and a fair value of $39.6 million.

The maturities of debt securities, municipal bonds and certain information regarding mortgage-backed securities held-to-maturity at September 30, 2023 are summarized in the following table:

		September 30, 2023
		Amortized				Fair
		Cost				Value
		(In thousands)
Due within 1 year		$	6,498			$	6,393
Due after 1 but within 5 years			18,526				16,900
Due after 5 but within 10 years			4,939				3,921
Due after 10 years			—				—
Total debt securities			29,963				27,214

Mortgage backed securities:
Residential			53,363				44,021
Commercial			2,509				2,493
Total		$	85,835			$	73,728

There were no sales of securities during the years ended September 30, 2023 and 2022.

As of September 30, 2023 and 2022, investment securities having an estimated fair value of approximately $12.0 million and $37.7 million, respectively, were pledged to secure public deposits.

Details of securities with unrealized losses at September 30, 2023 and 2022 are as follows:

						Less Than 12 Months								12 Months Or Greater								Total
		Number of				Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Securities				Value				Losses				Value				Losses				Value				Losses
						(Dollars in thousands)
September 30, 2023
Obligations of U.S. government agencies:
Mortgage-backed securities - residential			6			$	—			$	—			$	4,312			$	(864	)		$	4,312			$	(864	)
Mortgage-backed securities - commercial			2				1,926				(14	)			567				(2	)			2,493				(16	)
Obligations of U.S. government-sponsored enterprises
Mortgage-backed securities - residential			50				4,938				(49	)			44,485				(10,382	)			49,423				(10,431	)
Debt securities			12				—				—				21,550				(1,947	)			21,550				(1,947	)
Private label mortgage-backed securities residential			1				—				—				195				(12	)			195				(12	)
Obligations of state and political subdivisions			7				789				(43	)			2,072				(562	)			2,861				(605	)
Corporate securities			1				—				—				2,803				(197	)			2,803				(197	)
Total			79			$	7,653			$	(106	)		$	75,984			$	(13,966	)		$	83,637			$	(14,072	)

September 30, 2022
Obligations of U.S. government agencies:
Mortgage-backed securities- residential			6			$	2,364			$	(140	)		$	2,551			$	(588	)		$	4,915			$	(728	)
Mortgage-backed securities - commercial			1				631				—				—				—				631				—
Obligations of U.S. government-sponsored enterprises
Mortgage backed securities- residential			49				21,180				(2,795	)			29,088				(6,660	)			50,268				(9,455	)
Debt securities			14				11,664				(660	)			10,763				(1,735	)			22,427				(2,395	)
Private label mortgage-backed securities- residential			1				215				(10	)			—				—				215				(10	)
Obligations of state and political subdivisions			7				1,268				(181	)			1,577				(457	)			2,845				(638	)
Corporate securities			2				2,646				(353	)			4,917				(83	)			7,563				(436	)
Total			80			$	39,968			$	(4,139	)		$	48,896			$	(9,523	)		$	88,864			$	(13,662	)

The investment securities listed above currently have fair values less than amortized cost and therefore contain unrealized losses. The Company evaluated these securities and determined that the decline in value was primarily related to fluctuations in the interest rate environment and were not related to any company or industry specific event.

The Company anticipates full recovery of amortized costs with respect to these securities. The Company does not intend to sell these securities and has determined that it is not more likely than not that the Company would be required to sell these securities prior to maturity or market price recovery. Management has considered factors regarding other than temporarily impaired securities and determined that there are no securities with impairment that is other than temporary as of September 30, 2023 and 2022.