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INVESTMENT SECURITIES
 12 Months Ended
Sep. 30, 2025
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, 2025:

 

   September 30, 2025 
       Gross   Gross   Allowance for     
   Amortized   Unrealized   Unrealized   Credit   Fair 
   Cost   Gains   Losses   Losses   Value 
   (In thousands) 
Securities available-for-sale:                    
Obligations of U.S. government agencies:                    
Mortgage backed securities - residential  $90   $
-
   $(8)  $
    -
   $82 
Obligations of U.S. government-sponsored enterprises:                         
Mortgage-backed securities-residential   15,325    70    (1,082)   
-
    14,313 
Corporate securities   6,500    287    
-
    
-
    6,787 
Total securities available-for-sale  $21,915   $357   $(1,090)  $
-
   $21,182 
Securities held-to-maturity:                         
Obligations of U.S. government agencies:                         
Mortgage-backed securities - residential  $6,558   $
-
   $(629)  $
-
   $5,929 
Mortgage-backed securities - commercial   3,913    19    (17)   
-
    3,915 
Obligations of U.S. government-sponsored enterprises:                         
Mortgage backed securities - residential   40,741    4    (4,679)   
-
    36,066 
Debt securities   9,449    12    (455)   
-
    9,006 
Private label mortgage-backed securities - residential   174    
-
    (2)   
-
    172 
Obligations of state and political subdivisions   3,431    5    (278)   
-
    3,158 
Corporate securities   3,000    
-
    (86)   
-
    2,914 
Total securities held-to-maturity  $67,266   $40   $(6,146)  $
-
   $61,160 
Total investment securities  $89,181   $397   $(7,236)  $
-
   $82,342 

 

The following table summarizes the amortized cost and fair values of securities classified as available-for-sale and held to-maturity at September 30, 2024:

 

   September 30, 2024 
       Gross   Gross   Allowance for     
   Amortized   Unrealized   Unrealized   Credit   Fair 
   Cost   Gains   Losses   Losses   Value 
   (In thousands) 
Securities available-for-sale:                    
Obligations of U.S. government agencies:                    
Mortgage backed securities - residential  $95   $
-
   $(6)  $
    -
   $89 
Obligations of U.S. government-sponsored enterprises:                         
Mortgage-backed securities-residential   12,652    56    (1,202)   
-
    11,506 
Corporate securities   4,000    21    
-
    
-
    4,021 
Total securities available-for-sale  $16,747   $77   $(1,208)  $
-
   $15,616 
Securities held-to-maturity:                         
Obligations of U.S. government agencies:                         
Mortgage-backed securities - residential  $7,209   $-   $(611)  $
-
   $6,598 
Mortgage-backed securities - commercial   4,268    64    (23)   
-
    4,309 
Obligations of U.S. government-sponsored enterprises:                         
Mortgage backed securities - residential   42,701    4    (5,194)   
-
    37,511 
Debt securities   19,000    13    (865)   
-
    18,148 
Private label mortgage-backed securities - residential   190    
-
    (5)   
-
    185 
Obligations of state and political subdivisions   3,448    3    (351)   
-
    3,100 
Corporate securities   3,000    
-
    (234)   
-
    2,766 
Total securities held-to-maturity  $79,816   $84   $(7,283)  $
-
   $72,617 
Total investment securities  $96,563   $161   $(8,491)  $
-
   $88,233 

The contractual maturities of the debt securities, municipal bonds and certain information regarding the mortgage-backed securities available-for-sale at September 30, 2025 are summarized in the following table:

 

   September 30, 2025 
   Amortized   Fair 
   Cost   Value 
   (In thousands) 
Due within 1 year  $
-
   $
-
 
Due after 1 but within 5 years   
-
    
-
 
Due after 5 but within 10 years   6,500    6,787 
Due after 10 years   
-
    
-
 
Total debt securities   6,500    6,787 
           
Mortgage-backed securities:          
Residential   15,415    14,395 
Commercial   
-
    
-
 
Total  $21,915   $21,182 

 

The contractual maturities of the debt securities, municipal bonds and certain information regarding the mortgage-backed securities held-to-maturity at September 30, 2025 are summarized in the following table:

 

   September 30, 2025 
   Amortized   Fair 
   Cost   Value 
   (In thousands) 
Due within 1 year  $1,500   $1,465 
Due after 1 but within 5 years   13,268    12,643 
Due after 5 but within 10 years   1,112    970 
Due after 10 years   
-
    
-
 
Total debt securities   15,880    15,078 
           
Mortgage backed securities:          
Residential   47,473    42,167 
Commercial   3,913    3,915 
Total  $67,266   $61,160 

 

There were no sales of securities during the years ended September 30, 2025 and 2024.

 

As of September 30, 2025 and 2024, investment securities having a carrying amount of approximately $10.9 million and $12.5 million, respectively, were pledged to secure public deposits.

Details of available-for-sale securities with unrealized losses for which an allowance for credit losses has not been recorded at September 30, 2025 and 2024 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, 2025                            
Obligations of U.S. government agencies:                            
Mortgage-backed securities - residential   1   $
     -
   $
     -
   $82   $(8)  $82   $(8)
Obligations of U.S. government-sponsored enterprises                                   
Mortgage-backed securities - residential   7    
-
    
-
    6,728    (1,082)   6,728    (1,082)
Total   8   $
-
   $
-
   $6,810   $(1,090)  $6,810   $(1,090)
                                    
September 30, 2024                                   
Obligations of U.S. government agencies:                                   
Mortgage-backed securities - residential   1   $
-
   $
-
   $88   $(6)  $88   $(6)
Obligations of U.S. government-sponsored enterprises                                   
Mortgage-backed securities - residential   8    
-
    
-
    7,550    (1,202)   7,550    (1,202)
Total   9   $
-
   $
-
   $7,638   $(1,208)  $7,638   $(1,208)

 

The Company monitors the credit quality of held-to-maturity debt securities, primarily through their credit ratings by nationally recognized statistical ratings organizations, on a quarterly basis. At September 30, 2025, there were no non-performing held-to-maturity debt securities and no allowance for credit losses were required. The majority of the investment securities are explicitly or implicitly guaranteed by the United States government, and any estimate of expected credit losses would be insignificant to the Company.

 

The following table summarizes the amortized cost of held-to-maturity debt securities at September 30, 2025 and 2024, aggregated by credit quality indicator:

 

   Credit Rating at Amortized Cost 
   AAA/AA/A   BBB/BB/B   Non-rated 
   (In thousands) 
September 30, 2025    
Obligations of U.S. government agencies:            
Mortgage-backed securities - residential  $6,558   $
-
   $
     -
 
Mortgage-backed securities - commercial   3,913    
-
    
-
 
Obligations of U.S. government-sponsored enterprises:               
Mortgage backed securities - residential   40,741    
-
    
-
 
Debt securities   9,449    
-
    
-
 
Private label mortgage-backed securities - residential   174    
-
    
-
 
Obligations of state and political subdivisions   3,431    
-
    
-
 
Corporate securities   
-
    3,000    
-
 
Totals  $64,266   $3,000   $
-
 
                
September 30, 2024               
Obligations of U.S. government agencies:               
Mortgage-backed securities - residential  $7,209   $
-
   $
-
 
Mortgage-backed securities - commercial   4,268    
-
    
-
 
Obligations of U.S. government-sponsored enterprises:               
Mortgage backed securities - residential   42,701    
-
    
-
 
Debt securities   19,000    
-
    
-
 
Private label mortgage-backed securities - residential   190    
-
    
-
 
Obligations of state and political subdivisions   3,448    
-
    
-
 
Corporate securities   
-
    3,000    
-
 
Totals  $76,816   $3,000   $
-
 

The investment securities listed above may 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. For individual debt securities classified as available-for-sale, we determine whether a decline in fair value below the amortized cost has resulted from a credit loss or other factors. If the decline in fair value is due to credit, we will record the portion of the impairment loss relating to credit through an allowance for credit losses. Impairment that has not been recorded through an allowance for credit losses is recorded through other comprehensive income, net of applicable taxes.