0001140361-21-019551 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Mar. 31, 2021	May 19, 2021
Cover [Abstract]
Entity Registrant Name	Hanover Bancorp, Inc. /NY
Entity Central Index Key	0001828588
Current Fiscal Year End Date	--09-30
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Address, State or Province	NY
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,194,890

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Assets
Cash and non-interest-bearing deposits due from banks	$ 5,227	$ 6,239
Interest-bearing deposits due from banks	72,220	73,970
Federal funds sold	82	0
Total cash and cash equivalents	77,529	80,209
Securities:
Held to maturity (fair value of $9,777 and $11,131, respectively)	9,470	10,727
Available for sale, at fair value	7,801	6,035
Total securities	17,271	16,762
Loans held for sale	893	0
Loans held for investment	763,596	725,019
Allowance for loan losses	(8,179)	(7,869)
Loans held for investment, net	755,417	717,150
Premises and equipment, net	14,328	14,156
Accrued interest receivable	6,490	6,766
Prepaid pension	4,535	4,660
Restricted securities, at cost	3,824	4,202
Goodwill	1,710	1,901
Receivable - securities sales	3,291	0
Other assets	5,144	5,800
TOTAL ASSETS	890,432	851,606
Deposits:
Non-interest-bearing demand	122,388	82,350
Savings, NOW and money market	290,604	187,657
Time	305,192	394,753
Total deposits	718,184	664,760
Borrowings	56,417	85,154
Subordinated debentures	24,482	0
Note payable	0	14,984
Accrued interest payable	788	374
Other liabilities	8,316	8,291
TOTAL LIABILITIES	808,187	773,563
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY
Preferred stock (par value $0.01; 15,000,000 shares authorized; none issued)	0	0
Common stock (par value $0.01; 17,000,000 shares authorized; issued and outstanding 4,194,890 and 4,175,144, respectively)	42	42
Surplus	64,283	63,725
Retained earnings	17,694	14,120
Accumulated other comprehensive income, net of tax	226	156
TOTAL STOCKHOLDERS' EQUITY	82,245	78,043
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 890,432	$ 851,606

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Assets
Held to maturity, fair value	$ 9,777	$ 11,131
Shareholders' equity
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	17,000,000	17,000,000
Common stock, shares issued (in shares)	4,194,890	4,175,144
Common stock, shares outstanding (in shares)	4,194,890	4,175,144

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
INTEREST INCOME
Loans	$ 9,133	$ 9,728	$ 18,391	$ 19,674
Taxable securities	182	111	355	221
Federal funds sold	0	38	0	105
Other interest income	65	404	131	717
Total interest income	9,380	10,281	18,877	20,717
INTEREST EXPENSE
Savings, NOW and money market deposits	157	516	274	1,152
Time deposits	915	2,607	2,369	4,977
Borrowings	506	641	1,105	1,334
Total interest expense	1,578	3,764	3,748	7,463
Net interest income	7,802	6,517	15,129	13,254
Provision for loan losses	200	1,000	300	1,000
Net interest income after provision for loan losses	7,602	5,517	14,829	12,254
NON-INTEREST INCOME
Loan fees and service charges	125	57	191	137
Mortgage servicing income	14	25	31	54
Service charges on deposit accounts	17	15	32	35
Net gain on sale of loans held for sale	295	339	476	902
Net gain on sale of securities available for sale	240	0	240	0
Other income	1	2	8	2
Total non-interest income	692	438	978	1,130
NON-INTEREST EXPENSE
Salaries and employee benefits	3,325	2,886	6,501	5,474
Occupancy and equipment	1,209	1,083	2,380	2,215
Data processing	270	250	515	466
Advertising and promotion	19	111	67	217
Acquisition costs	151	0	296	236
Professional fees	308	837	720	1,342
Other expenses	443	464	836	832
Total non-interest expense	5,725	5,631	11,315	10,782
Income before income tax expense	2,569	324	4,492	2,602
Income tax expense	514	75	918	583
NET INCOME	$ 2,055	$ 249	$ 3,574	$ 2,019
EARNINGS PER COMMON SHARE - BASIC (in dollars per share)	$ 0.49	$ 0.06	$ 0.85	$ 0.49
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share)	$ 0.48	$ 0.06	$ 0.84	$ 0.48
WEIGHTED AVERAGE COMMON SHARES - BASIC (in shares)	4,193,682	4,155,711	4,187,239	4,155,837
WEIGHTED AVERAGE COMMON SHARES - DILUTED (in shares)	4,259,021	4,221,958	4,252,278	4,220,005

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income	$ 2,055	$ 249	$ 3,574	$ 2,019
Other comprehensive (loss) income, net of tax:
Change in unrealized gain on securities available for sale arising during the period, net of tax of $23, $13, $68 and $16, respectively	94	49	261	59
Reclassification adjustment for gains realized in net income, net of tax of ($49), $0, ($49) and $0, respectively	(191)	0	(191)	0
Total other comprehensive (loss) income, net of tax	(97)	49	70	59
Total comprehensive income, net of tax	$ 1,958	$ 298	$ 3,644	$ 2,078

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Other comprehensive (loss) income, net of tax:
Change in unrealized gain on securities available for sale arising during the period, net of tax	$ 23	$ 13	$ 68	$ 16
Reclassification adjustment for gains realized in net income, net of tax	$ (49)	$ 0	$ (49)	$ 0

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Surplus [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income, Net of Tax [Member]	Total
Balance at Sep. 30, 2019	$ 42	$ 62,740	$ 9,146	$ 22
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			2,019		$ 2,019
Stock-based compensation	0	333
Stock options exercised	0	107
Issuance of common stock	0	45
Other comprehensive (loss) income, net of tax				59	59
Balance at Mar. 31, 2020	42	63,225	11,165	81	74,513
Balance at Dec. 31, 2019	42	62,906	10,916	32
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			249		249
Stock-based compensation	0	186
Stock options exercised	0	107
Issuance of common stock	0	26
Other comprehensive (loss) income, net of tax				49	49
Balance at Mar. 31, 2020	42	63,225	11,165	81	74,513
Balance at Sep. 30, 2020	42	63,725	14,120	156	78,043
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			3,574		3,574
Stock-based compensation	0	445
Stock options exercised	0	0
Issuance of common stock	0	113
Other comprehensive (loss) income, net of tax				70	70
Balance at Mar. 31, 2021	42	64,283	17,694	226	82,245
Balance at Dec. 31, 2020	42	64,020	15,639	323
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			2,055		2,055
Stock-based compensation	0	216
Stock options exercised	0	0
Issuance of common stock	0	47
Other comprehensive (loss) income, net of tax				(97)	(97)
Balance at Mar. 31, 2021	$ 42	$ 64,283	$ 17,694	$ 226	$ 82,245

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - shares	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract]
Stock-based compensation, shares issued (in shares)	8,227	14,841	15,727	14,841
Stock-based compensation, shares withheld (in shares)	331		441
Stock-based compensation, shares forfeited (in shares)	667	6,407	667	28,287
Stock option exercised, shares issued (in shares)		10,735		10,735
Issuance of common stock, shares issued (in shares)	2,127	1,198	5,127	2,076

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME	$ 3,574	$ 2,019
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Provision for loan losses	300	1,000
Depreciation and amortization	698	657
Net gain on sale of loans held for sale	(476)	(902)
Net gain on sale of securities available for sale	(240)	0
Stock-based compensation	445	333
Net accretion of premiums, discounts, loan fees and costs	(229)	(36)
Amortization of debt issuance costs	43	1
Amortization of intangible assets	2	2
Mortgage servicing rights valuation adjustment	25	67
Deferred tax benefit	(170)	(47)
Decrease (increase) in accrued interest receivable	276	(24)
Increase in other assets	(2,196)	(347)
Increase in accrued interest payable	414	64
Increase (decrease) in other liabilities	25	(3,369)
Net cash provided by (used in) operating activities	2,491	(582)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of securities available for sale	(4,700)	0
Purchases of restricted securities	(223)	0
Proceeds from sales of securities available for sale	3,240	0
Principal repayments of securities held to maturity	1,247	488
Principal repayments of securities available for sale	18	16
Redemptions of restricted securities	601	872
Proceeds from sales of loans	18,287	30,845
Net increase in loans	(57,026)	(4,300)
Purchases of premises and equipment	(870)	(610)
Net cash (used in) provided by investing activities	(39,426)	27,311
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits	53,424	66,811
Repayments of Federal Home Loan Bank advances	(12,580)	(19,300)
Repayments of Federal Reserve Bank borrowings	(16,157)	0
Proceeds from issuance of subordinated debentures, net of issuance costs	24,455	0
Repayment of note payable	(15,000)	0
Net proceeds from stock options exercised	0	107
Net proceeds from issuance of common stock	113	45
Net cash provided by financing activities	34,255	47,663
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(2,680)	74,392
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	80,209	87,831
CASH AND CASH EQUIVALENTS, END OF PERIOD	77,529	162,223
SUPPLEMENTAL DATA:
Interest paid	3,334	7,113
Income taxes paid	514	896
SUPPLEMENTAL NON-CASH DISCLOSURE:
Transfers from portfolio loans to loans held for sale	$ 18,704	$ 29,525

BASIS OF PRESENTATION, RISKS AND UNCERTAINTIES, ACCOUNTING POLICIES AND RECENT ACCOUNTING DEVELOPMENTS	6 Months Ended
	Mar. 31, 2021
BASIS OF PRESENTATION, RISKS AND UNCERTAINTIES, ACCOUNTING POLICIES AND RECENT ACCOUNTING DEVELOPMENTS [Abstract]
BASIS OF PRESENTATION, RISKS AND UNCERTAINTIES, ACCOUNTING POLICIES AND RECENT ACCOUNTING DEVELOPMENTS	1. BASIS OF PRESENTATION, RISKS AND UNCERTAINTIES, ACCOUNTING POLICIES AND RECENT ACCOUNTING DEVELOPMENTS Hanover Bancorp, Inc. (the “Company”), is a New York corporation which became the holding company for Hanover Community Bank (the “Bank”) in 2016. The Bank, headquartered in Mineola, New York, was incorporated under the laws of the State of New York and is a New York State chartered bank. The Bank commenced operations on November 4, 2008 and is a full-service bank providing personal and business lending and deposit services. As a State chartered bank, the Bank is subject to regulation by the New York State Department of Financial Services (“DFS”) and the Federal Deposit Insurance Corporation. The Company is subject to regulations promulgated by the Board of Governors of the Federal Reserve System (the “FRB”). In August 2019, Chinatown Federal Savings Bank was acquired by the Company and merged into the Bank. During the six-month period ended March 31, 2021, previously reported goodwill resulting from the acquisition of Chinatown Federal Savings Bank was reduced by $191 thousand. The reduction was an adjustment related to the net deferred tax asset. Basis of Presentation In the opinion of the Company’s management, the preceding unaudited interim consolidated financial statements contain all adjustments, consisting of normal accruals, necessary for a fair presentation of the Company’s consolidated statement of financial condition as of March 31, 2021, its consolidated statements of income for the three and six months ended March 31, 2021 and 2020, its consolidated statements of comprehensive income for the three and six months ended March 31, 2021 and 2020, its consolidated statements of changes in stockholders’ equity for the three and six months ended March 31, 2021 and 2020 and its consolidated statements of cash flows for the six months ended March 31, 2021 and 2020. In addition, the preceding unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, as well as in accordance with predominant practices within the banking industry. They do not include all the information and footnotes required by U.S. GAAP for complete financial statements. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. The results of operations for the three and six months ended March 31, 2021 are not necessarily indicative of the results of operations to be expected for the remainder of the year. All material intercompany accounts and transactions have been eliminated in consolidation. Unless the context otherwise requires, references herein to the Company include the Company and the Bank on a consolidated basis. Risks and Uncertainties In March 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. The COVID-19 pandemic has adversely affected, and may continue to adversely affect, local, national and global economic activity. Actions taken to help mitigate the spread of COVID-19 include restrictions on travel, quarantines and government-mandated closures of various businesses. The spread of the outbreak has caused significant disruptions to the economy and has disrupted banking and other financial activity in the areas in which the Company operates. Also, in March 2020, the Federal Open Market Committee reduced the targeted federal funds interest rate range to between zero and 0.25 percent and the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. The reductions in interest rates and other effects of the COVID-19 pandemic may materially and adversely affect the Company’s financial condition and results of operations in future periods. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial impact will be to the Company. It is possible that estimates made in the financial statements could be materially and adversely impacted due to these conditions, including estimates regarding expected credit losses on loans receivable and impairment of goodwill. Accounting Policies Allowance for Loan Losses – The Company considers the determination of the allowance for loan losses its most critical accounting policy, practice and use of estimates. The Company uses available information to recognize probable and reasonably estimable losses on loans. Future additions to the allowance may be necessary based upon changes in economic, market or other conditions. Changes in estimates could result in a material change in the allowance. The allowance for loan losses is increased by a provision for loan losses charged against income and is decreased by charge-offs, net of recoveries. Loan losses are recognized in the period the loans, or portion thereof, are deemed uncollectible. The adequacy of the allowance to cover any inherent loan losses in the portfolio is evaluated on a quarterly basis. Loans and Loan Interest Income Recognition - Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff, are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs and an allowance for loan losses. The loan portfolio is segmented into residential real estate, multi-family, commercial real estate, commercial and industrial loans and consumer loans. Interest income on loans is accrued and credited to income as earned. Net loan origination fees and costs are deferred and accreted/amortized to interest income over the loan’s contractual life using the level-yield method, adjusted for actual prepayments. Loans that are acquired are initially recorded at fair value with no carryover of the related allowance for loan losses. After acquisition, losses are recognized through the allowance for loan losses. Determining the fair value of the loans involves estimating the amount and timing of expected principal and interest cash flows to be collected on the loans and discounting those cash flows at a market interest rate. The Company has two loans which, at the time of acquisition, showed evidence of credit deterioration since origination. Purchased credit impaired loans were not material at March 31, 2021 and September 30, 2020. Loans Held for Sale - Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. Periodically, the Company originates various residential mortgage loans for sale to investors generally on a servicing released basis. The sale of such loans is generally arranged through a master commitment on a best-efforts basis. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Premiums, discounts, origination fees and costs on loans held for sale are deferred and recognized as a component of the gain or loss on sale. Gains and losses on sales of loans held for sale are included in other income, recognized on settlement date and are determined to be the difference between the sale proceeds and the carrying value of the loans. These transactions are accounted for as sales based on satisfaction of the criteria for such accounting which provides that, as transferor, the Company has surrendered control of the loans. For liquidity purposes generally, there are instances when loans originated with the intent to hold in portfolio are subsequently transferred to loans held for sale. At transfer, they are carried at the lower of cost or fair value. Recent Accounting Developments Adoption of New Accounting Standards – In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820), “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in this ASU were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 with early adoption permitted. The amendments are to be applied on a retrospective basis to all periods presented. The fair value disclosures were updated with the Company’s 2020 adoption of ASU 2018-13, with no material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), “Simplifying the Test for Goodwill Impairment.” The amendments in this ASU simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the amendments in this ASU, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not exceeding the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The ASU also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. For non-public entities, ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2021 with early adoption permitted. The amendments are to be applied on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition within the first annual period when the entity initially adopts the amendments. The Company adopted ASU 2017-04 on October 1, 2019 and determined that there was no impairment of goodwill under the new method. Recent Accounting Pronouncements - In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), “Measurement of Credit Losses on Financial Instruments,” which sets forth a current expected credit loss (“CECL”) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the incurred loss model and will apply to the measurement of credit losses on financial assets measured at amortized cost and to some off-balance sheet credit exposures. For the Company, an emerging growth company electing to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has been gathering data and will be evaluating data and system requirements to implement this standard. The Company cannot yet determine the overall impact this standard will have on its consolidated financial statements upon adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which amended existing guidance that requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, the lessor accounting model and Topic 606, Revenue from Contracts with Customers. For the Company, an emerging growth company electing to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act, ASU 2016-02 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, with early application permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the adoption impact of ASU 2016-02 on the consolidated financial statements. Based on leases outstanding at March 31, 2021, the Company does not expect adoption to have a material impact on the income statement but does anticipate a material impact to the Company’s consolidated statement of financial condition as a result of recognizing right-of-use assets and lease liabilities.

EARNINGS PER COMMON SHARE

6 Months Ended

Mar. 31, 2021

EARNINGS PER COMMON SHARE [Abstract]

EARNINGS PER COMMON SHARE

2. EARNINGS PER COMMON SHARE

Basic earnings per common share is computed based on the weighted-average number of shares outstanding. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options. For periods in which a loss is reported, the impact of stock options is not considered as the result would be antidilutive.

The computation of earnings per common share for the three and six months ended March 31, 2021 and 2020 follows (in thousands, except share and per share data). There were no stock options that were antidilutive for the three and six months ended March 31, 2021 and 2020.

	Three Months Ended March 31,				Six Months Ended March 31,
	2021		2020		2021		2020

Basic earnings per common share
Net income	$	2,055	$	249	$	3,574	$	2,019
Weighted average common shares outstanding		4,193,682		4,155,711		4,187,239		4,155,837
Basic earnings per common share	$	0.49	$	0.06	$	0.85	$	0.49

Diluted earnings per common share
Net income	$	2,055	$	249	$	3,574	$	2,019
Weighted average common shares outstanding for basic earnings per common share		4,193,682		4,155,711		4,187,239		4,155,837
Add: dilutive effects of assumed exercises of stock options		65,339		66,247		65,039		64,168
Average shares and dilutive potential common shares		4,259,021		4,221,958		4,252,278		4,220,005
Diluted earnings per common share	$	0.48	$	0.06	$	0.84	$	0.48

SECURITIES

6 Months Ended

Mar. 31, 2021

SECURITIES [Abstract]

SECURITIES

3. SECURITIES

At the time of purchase of a security, the Company designates the security as either available for sale or held to maturity, depending upon investment objectives, liquidity needs and intent.

The amortized cost, fair value and gross unrealized gains and losses of the Company’s investment securities available for sale and held to maturity at March 31, 2021 and September 30, 2020 were as follows (in thousands):

	March 31, 2021									September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value


Available for sale:
U.S. GSE residential mortgage-backed securities	$	815	$	117	$	-		$	932	$	838	$	124	$	-	$	962
Corporate bonds		6,700		171		(2	)		6,869		5,000		73		-		5,073
Total available for sale securities		7,515		288		(2	)		7,801		5,838		197		-		6,035
Held to maturity:
U.S. GSE residential mortgage-backed securities		3,249		78		-			3,327		4,478		118		-		4,596
U.S. GSE commercial mortgage-backed securities		2,721		200		-			2,921		2,749		253		-		3,002
Corporate bonds		3,500		33		(4	)		3,529		3,500		33		-		3,533
Total held to maturity securities		9,470		311		(4	)		9,777		10,727		404		-		11,131
Total investment securities	$	16,985	$	599	$	(6	)	$	17,578	$	16,565	$	601	$	-	$	17,166

All of the Company’s securities with gross unrealized losses at March 31, 2021 had been in a continuous loss position for less than twelve months and such unrealized losses totaling $6 thousand are immaterial to the Company’s consolidated financial statements. There were no securities with unrealized losses at September 30, 2020. At March 31, 2021 and September 30, 2020, investment securities carried at $1.4 million and $5.6 million, respectively, were pledged to secure public deposits.

The amortized cost and fair value of the Company’s securities portfolio at March 31, 2021 (in thousands) are presented by contractual maturity in the table below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	March 31, 2021
	Amortized Cost		Fair Value
Securities available for sale:
Five to ten years	$	4,700	$	4,869
After ten years		2,000		2,000
U.S. GSE residential mortgage-backed securities		815		932
Total securities available for sale		7,515		7,801
Securities held to maturity:
One to five years		1,500		1,496
Five to ten years		2,000		2,033
U.S. GSE residential mortgage-backed securities		3,249		3,327
U.S. GSE commercial mortgage-backed securities		2,721		2,921
Total securities held to maturity		9,470		9,777
Total investment securities	$	16,985	$	17,578

For the three and six months ended March 31, 2021, proceeds from sales of securities available for sale totaled $3.2 million, with an associated recognized gross gain of $240 thousand. There were no sales of securities during the three and six months ended March 31, 2020.

LOANS

6 Months Ended

Mar. 31, 2021

LOANS [Abstract]

LOANS

4. LOANS

The following table sets forth the classification of the Company’s loans by loan portfolio segment for the periods presented (in thousands).

	March 31, 2021			September 30, 2020

Residential real estate	$	432,495		$	454,073
Multi-family		175,463			136,539
Commercial real estate		117,762			113,615
Commercial and industrial		38,154			21,100
Consumer		18			24
Gross loans		763,892			725,351
Net deferred fees		(296	)		(332	)
Total loans		763,596			725,019
Allowance for loan losses		(8,179	)		(7,869	)
Total loans, net	$	755,417		$	717,150

The Company is a participant in the Paycheck Protection Program (“PPP”), administered by the Small Business Administration under the CARES Act, to provide guaranteed loans to qualifying businesses and organizations. These loans carry a fixed rate of 1.00% and a term of two years (loans made before June 5, 2020) or five years (loans made on or after June 5, 2020), if not forgiven, in whole or in part. As of March 31, 2021, eight of the Company’s PPP loans totaling $868 thousand had received forgiveness. The Company’s PPP loans outstanding, included in commercial and industrial loans in the table above, totaled $33.5 million and $17.6 million at March 31, 2021 and September 30, 2020, respectively.

At March 31, 2021 and September 30, 2020, the Company was servicing approximately $32.2 million and $26.8 million, respectively, of loans for others. The Company had approximately $893 thousand in loans held for sale at March 31, 2021, and no loans held for sale at September 30, 2020.

For the three months ended March 31, 2021 and 2020, the Company sold loans totaling approximately $9.4 million and $9.9 million, respectively, recognizing net gains of $295 thousand and $339 thousand, respectively. For the six months ended March 31, 2021 and 2020, the Company sold loans totaling approximately $17.8 million and $30.1 million, respectively, recognizing net gains of $476 thousand and $902 thousand, respectively.

The following summarizes the activity in the allowance for loan losses by portfolio segment for the periods indicated (in thousands).

	Three Months Ended March 31, 2021											Three Months Ended March 31, 2020
	Balance at beginning of period		Charge-offs		Recoveries		(Credit) provision for loan losses			Balance at end of period		Balance at beginning of period		Charge-offs			Recoveries		Provision (credit) for loan losses			Balance at end of period
Residential real estate	$	5,094	$	-	$	-	$	(243	)	$	4,851	$	4,685	$	-		$	-	$	576		$	5,261
Multi-family		1,619		-		-		336			1,955		1,192		-			-		248			1,440
Commercial real estate		1,221		-		-		89			1,310		1,175		-			-		(114	)		1,061
Commercial and industrial		44		-		-		18			62		79		(300	)		-		300			79
Consumer		1		-		-		-			1		12		-			-		(10	)		2
Total	$	7,979	$	-	$	-	$	200		$	8,179	$	7,143	$	(300	)	$	-	$	1,000		$	7,843

	Six Months Ended March 31, 2021											Six Months Ended March 31, 2020
	Balance at beginning of period		Charge-offs		Recoveries		(Credit) provision for loan losses			Balance at end of period		Balance at beginning of period		Charge-offs			Recoveries		Provision (credit) for loan losses			Balance at end of period
Residential real estate	$	5,103	$	-	$	-	$	(252	)	$	4,851	$	4,647	$	-		$	-	$	614		$	5,261
Multi-family		1,506		-		-		449			1,955		1,215		-			-		225			1,440
Commercial real estate		1,221		-		-		89			1,310		1,193		-			-		(132	)		1,061
Commercial and industrial		38		-		10		14			62		75		(300	)		-		304			79
Consumer		1		-		-		-			1		13		-			-		(11	)		2
Total	$	7,869	$	-	$	10	$	300		$	8,179	$	7,143	$	(300	)	$	-	$	1,000		$	7,843

The following presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment methodology for the periods indicated (in thousands). The recorded investment in loans excludes accrued interest receivable due to immateriality.

	Allowance for Loan Losses						Loan Balances
March 31, 2021	Individually evaluated for impairment		Collectively evaluated for impairment		Ending balance		Individually evaluated for impairment		Collectively evaluated for impairment		Ending balance
Residential real estate	$	-	$	4,851	$	4,851	$	8,494	$	423,982	$	432,476
Multi-family		-		1,955		1,955		1,324		174,455		175,779
Commercial real estate		-		1,310		1,310		1,198		116,768		117,966
Commercial and industrial		-		62		62		-		37,355		37,355
Consumer		-		1		1		-		20		20
Total	$	-	$	8,179	$	8,179	$	11,016	$	752,580	$	763,596

	Allowance for Loan Losses						Loan Balances
September 30, 2020	Individually evaluated for impairment		Collectively evaluated for impairment		Ending balance		Individually evaluated for impairment		Collectively evaluated for impairment		Ending balance
Residential real estate	$	-	$	5,103	$	5,103	$	2,221	$	451,539	$	453,760
Multi-family		-		1,506		1,506		47		136,690		136,737
Commercial real estate		-		1,221		1,221		629		113,129		113,758
Commercial and industrial		-		38		38		334		20,404		20,738
Consumer		-		1		1		-		26		26
Total	$	-	$	7,869	$	7,869	$	3,231	$	721,788	$	725,019

The following presents information related to the Company’s impaired loans by portfolio segment for the periods shown (in thousands).

	March 31, 2021						September 30, 2020
	Unpaid Principal Balance		Recorded Investment		Allowance Allocated		Unpaid Principal Balance		Recorded Investment		Allowance Allocated
With no related allowance recorded:
Residential real estate	$	8,494	$	8,494	$	-	$	2,221	$	2,221	$	-
Multi-family		1,324		1,324		-		47		47		-
Commercial real estate		1,198		1,198		-		629		629		-
Commercial and industrial		-		-		-		634		334		-
Total	$	11,016	$	11,016	$	-	$	3,531	$	3,231	$	-

	Three Months Ended March 31,								Six Months Ended March 31,
	2021				2020				2021				2020
	Average recorded investment		Interest income recognized⁽¹⁾		Average recorded investment		Interest income recognized⁽¹⁾		Average recorded investment		Interest income recognized⁽¹⁾		Average recorded investment		Interest income recognized⁽¹⁾
Residential real estate	$	7,880	$	21	$	2,241	$	21	$	6,767	$	43	$	1,977	$	42
Multi-family		1,328		2		72		4		687		3		75		8
Commercial real estate		671		1		596		19		350		2		478		25
Commercial and industrial		-		-		534		-		-		-		584		-
Total	$	9,879	$	24	$	3,443	$	44	$	7,804	$	48	$	3,114	$	75

⁽¹⁾ Accrual basis interest income recognized approximates cash basis income.

At March 31, 2021 and September 30, 2020, past due and non-accrual loans disaggregated by portfolio segment were as follows (dollars in thousands):

	Past Due and Non-Accrual
March 31, 2021	30 - 59 days past due and accruing		60 - 89 days past due and accruing		90 days and over past due and accruing		Non-accrual			Total past due and non-accrual		Current		Total
Residential real estate	$	1,336	$	-	$	-	$	6,828	⁽¹⁾	$	8,164	$	424,312	$	432,476
Multi-family		-		-		-		1,324	⁽²⁾		1,324		174,455		175,779
Commercial real estate		-		-		322		1,198	⁽³⁾		1,520		116,446		117,966
Commercial and industrial		-		-		-		-			-		37,355		37,355
Consumer		-		-		-		-			-		20		20
Total	$	1,336	$	-	$	322	$	9,350		$	11,008	$	752,588	$	763,596

⁽¹⁾ Of the residential real estate non-accrual loans at March 31, 2021, $1,920 were not past due and $4,908 were 90 days or more past due.

⁽²⁾ Of the multi-family non-accrual loans at March 31, 2021, $1,287 were not past due and $37 were 90 days or more past due.

⁽³⁾ Of the commercial real estate non-accrual loans at March 31, 2021, $1,180 were not past due and $18 were 90 days or more past due.

	Past Due and Non-Accrual
September 30, 2020	30 - 59 days past due and accruing		60 - 89 days past due and accruing		90 days and over past due and accruing		Non-accrual		⁽¹⁾	Total past due and non-accrual		Current		Total
Residential real estate	$	4,507	$	-	$	-	$	538		$	5,045	$	448,715	$	453,760
Multi-family		-		-		-		47			47		136,690		136,737
Commercial real estate		-		-		296		34			330		113,428		113,758
Commercial and industrial		-		-		-		334			334		20,404		20,738
Consumer		-		-		-		-			-		26		26
Total	$	4,507	$	-	$	296	$	953		$	5,756	$	719,263	$	725,019

⁽¹⁾ Non-accrual loans at September 30, 2020 were 90 days or more past due.

Troubled debt restructurings (“TDRs”) are loan modifications where the Company has granted a concession to a borrower in financial difficulty. To assess whether a borrower is experiencing financial difficulty, an evaluation is performed to determine if that borrower is currently in payment default under any of its obligations or whether there is a probability that the borrower will be in payment default in the foreseeable future without the modification. At both March 31, 2021 and September 30, 2020, the Company had a recorded investment in TDRs totaling $1.7 million, consisting solely of residential real estate loans with no specific reserves allocated to such loans and no commitment to lend additional funds under those loans, at either March 31, 2021 or September 30, 2020.

For the three and six months ended March 31, 2021 and 2020, there were no TDRs for which there was a payment default within twelve months of restructuring. A loan is considered to be in payment default once it is 90 days contractually past due under its modified terms. For the three and six months ended March 31, 2021 and 2020, the Company had no new TDRs.

In June 2020, New York’s Governor Andrew Cuomo signed SB 8243C and SB 8428, which created Section 9-x of the New York Banking Law. The new Section 9-x requires New York regulated banking institutions and New York regulated mortgage servicers to make available applications for forbearance of any payment due on certain residential mortgages to qualified borrowers for their primary residence located in New York. In general, qualified borrowers will be granted forbearance of all monthly payments for a period of up to 180 days, to be extended for up to an additional 180 days provided that the borrower demonstrates continued financial hardship.

The Company has been prudently working with borrowers negatively impacted by the COVID-19 pandemic while managing credit risks and recognizing an appropriate allowance for loan losses. The Company modified 393 loans totaling $220.4 million under the CARES Act which are excluded from TDR classification under Section 4013 of the CARES Act or under applicable interagency guidance of the federal banking regulators. As of March 31, 2021, 36 loans totaling $22.8 million were still in forbearance, of which 27 loans totaling $16.0 million were loans qualified under Section 9-x.

The Company continuously monitors the credit quality of its loans by reviewing certain credit quality indicators, most notably credit risk ratings by loan segment. The Company utilizes a credit risk rating system as part of the risk assessment of its loan portfolio. The Company’s lending officers assign credit risk ratings to loans at time of origination. Should a lending officer learn of any financial developments subsequent to a loan’s origination, the loan’s risk rating is reviewed and adjusted if necessary. In addition, the Company engages a third-party independent loan reviewer that performs semi-annual reviews of a sample of the Company’s loans, validating the credit risk ratings assigned to those loans.

Credit risk ratings play an important role in the determination of the Company’s loan loss provision and the adequacy of its allowance for loan losses. The Company’s credit risk rating system makes use of certain information relevant to the ability of the borrower to service their debt, including current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company’s credit risk ratings are as follows:

Special Mention – Loans with potential weaknesses that require close management attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects for the asset or in the Company’s credit position at some future date.

Substandard - Loans inadequately protected by current sound worth and paying capacity of the obligor or collateral pledged, if any. Loans classified as Substandard have a well-defined weakness or weaknesses that jeopardizes the liquidation of the debt. There exists a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans with weaknesses inherent in those classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing factors, conditions and values, highly questionable and improbable.

Loans not having a credit risk rating of Special Mention, Substandard or Doubtful are considered pass loans.

At March 31, 2021 and September 30, 2020, the Company’s loan portfolio by credit risk rating disaggregated by portfolio segment were as follows (dollars in thousands):

	March 31, 2021								September 30, 2020
	Grade								Grade
	Pass		Special mention		Substandard		Total		Pass		Special mention		Substandard		Total
Residential real estate	$	422,760	$	2,888	$	6,828	$	432,476	$	449,524	$	2,893	$	1,343	$	453,760
Multi-family		170,454		4,001		1,324		175,779		135,396		1,294		47		136,737
Commercial real estate		116,154		-		1,812		117,966		111,457		893		1,408		113,758
Commercial and industrial		37,355		-		-		37,355		20,404		-		334		20,738
Consumer		20		-		-		20		26		-		-		26
Total	$	746,743	$	6,889	$	9,964	$	763,596	$	716,807	$	5,080	$	3,132	$	725,019

STOCK-BASED COMPENSATION

6 Months Ended

Mar. 31, 2021

STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

5. STOCK-BASED COMPENSATION

The Company’s 2018 Equity Compensation Plan (“the 2018 Plan”) provides for the grant of stock-based compensation awards to officers, employees and directors of the Company. Under the 2018 Plan, a total of 346,000 shares of the Company’s common stock were approved for issuance, of which 207,681 shares remained for possible issuance at March 31, 2021.

Stock Options

Stock options are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant, with vesting periods of three years and contractual terms of ten years. All stock options fully vest upon a change in control.

The fair value of stock options is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. Expected terms are based on historical data and represent the periods in which the options are expected to be outstanding. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

No stock options were exercised during the six months ended March 31, 2021. The total intrinsic value of options exercised for the six months ended March 31, 2020 was $127 thousand. The total cash received from option exercises for the six months ended March 31, 2020 was $107 thousand. The Company recognized tax benefits of $44 thousand resulting from option exercises for the three and six months ended March 31, 2020.

A summary of stock option activity follows (aggregate intrinsic value in thousands):

	Number of Options		Weighted- Average Exercise Price Per Share		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Term
Outstanding, October 1, 2020		155,506	$	11.35	$	1,623	4.66 years
Granted		-		-
Exercised		-		-
Forfeited		-		-
Outstanding, March 31, 2021 ⁽¹⁾		155,506	$	11.35	$	1,656	4.16 years

⁽¹⁾ All outstanding options are fully vested and exercisable.

There was no compensation expense attributable to stock options for the six months ended March 31, 2021. For the three and six months ended March 31, 2020, such compensation expense was $5 thousand and $10 thousand, respectively.

Restricted Stock

During the six months ended March 31, 2021, restricted stock awards of 15,727 shares were granted with a three-year vesting period. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at issue date. Since there is no active market for the exchange of the Company’s stock, the fair value of the restricted stock awards was estimated on the date of grant based on the prices of the most recent transactions in the Company’s common stock.

A summary of restricted stock activity follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Unvested, October 1, 2020		95,052		$	19.56
Granted		15,727			21.93
Vested		(15,879	)		18.96
Forfeited		(667	)		21.79
Unvested, March 31, 2021		94,233		$	20.04

Compensation expense attributable to restricted stock was $216 thousand and $180 thousand for the three months ended March 31, 2021 and 2020, respectively. For the six months ended March 31, 2021 and 2020, compensation expense attributable to restricted stock was $445 thousand and $322 thousand, respectively. As of March 31, 2021, there was $1.4 million of total unrealized compensation cost related to unvested restricted stock, expected to be recognized over a weighted-average term of 1.73 years. The total fair value of shares vested during the six months ended March 31, 2021 and 2020 was $349 thousand and $253 thousand, respectively. Of the vested shares, 441 shares and 0 shares, respectively, were withheld to pay taxes due upon vesting.

REGULATORY MATTERS

6 Months Ended

Mar. 31, 2021

REGULATORY MATTERS [Abstract]

REGULATORY MATTERS

6. REGULATORY MATTERS

The Bank is subject to various regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet minimum capital requirements can initiate regulatory action.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required.

In addition, to avoid limitations on distributions, including dividend payments, the Bank must hold a capital conservation buffer above its minimum risk-based capital requirements. The capital conservation buffer is equal to the lowest of the results calculated in items (1), (2), and (3) as follows: (1) the Bank’s common equity tier 1 capital to risk-weighted assets ratio, less 4.50%, which is the minimum common equity tier 1 capital ratio regulatory requirement; (2) the Bank’s tier 1 capital to risk-weighted assets ratio, less 6.00%, which is the minimum tier 1 capital ratio regulatory requirement; and (3) the Bank’s total capital to risk-weighted assets ratio, less 8.00%, which is the minimum total capital ratio regulatory requirement. However, if any of the three calculated results is less than zero (i.e., is negative), the capital conservation buffer would be zero.

Each of the Bank’s capital ratios exceeds applicable regulatory capital requirements and the Bank meets the requisite capital ratios to be well capitalized as of March 31, 2021 and September 30, 2020. At March 31, 2021 and September 30, 2020, the Bank’s capital conservation buffers were in excess of the minimum buffer requirement described above. There are no subsequent conditions or events that management believes have changed the Bank’s capital adequacy.

The Bank’s capital amounts (in thousands) and ratios are presented in the table that follows.

	Actual					Required for capital adequacy purposes					Excess of amount required for capital adequacy purposes⁽¹⁾					To be Well Capitalized under prompt corrective action regulations
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
March 31, 2021
Total capital to risk-weighted assets	$	109,302		22.49	%	$	38,882		8.00	%	$	70,420		14.49	%	$	48,602		10.00	%
Tier 1 capital to risk-weighted assets		103,199		21.23	%		29,161		6.00	%		74,038		15.23	%		38,882		8.00	%
Common equity tier 1 capital to risk-weighted assets		103,199		21.23	%		21,871		4.50	%		81,328		16.73	%		31,591		6.50	%
Tier 1 capital to adjusted average assets (leverage)		103,199		12.00	%		34,401		4.00	%		N/A		N/A			43,001		5.00	%

September 30, 2020
Total capital to risk-weighted assets	$	95,079		20.57	%	$	36,970		8.00	%	$	58,109		12.57	%	$	46,212		10.00	%
Tier 1 capital to risk-weighted assets		89,275		19.32	%		27,727		6.00	%		61,548		13.32	%		36,970		8.00	%
Common equity tier 1 capital to risk-weighted assets		89,275		19.32	%		20,796		4.50	%		68,479		14.82	%		30,038		6.50	%
Tier 1 capital to adjusted average assets (leverage)		89,275		11.22	%		31,820		4.00	%		N/A		N/A			39,775		5.00	%

⁽¹⁾ The capital conservation buffer is the minimum of the excess amounts shown, that is 14.49% and 12.57% at March 31, 2021 and September 30, 2020, respectively.

The ability of the Bank to pay dividends to the Company is subject to certain regulatory restrictions. Generally, the Bank may not declare or pay dividends in excess of retained earnings as reported in its Consolidated Reports of Condition and Income (Call Report) without prior approval of regulatory agencies. In addition, as discussed above, the Bank’s ability to pay dividends to the Company may be limited if the Bank fails to satisfy any applicable capital conservation buffer. As of March 31, 2021, $20.6 million of the Bank’s retained earnings was available to pay dividends.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

FAIR VALUE

6 Months Ended

Mar. 31, 2021

FAIR VALUE [Abstract]

FAIR VALUE

7. FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax effects related to the realization of unrealized gains and losses could have a significant impact on fair value estimates and have not been considered.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value.

Cash and cash equivalents - Cash and cash equivalents, which includes cash and due from banks, interest-bearing deposits at other banks and federal funds sold are short-term in nature with original maturities of three months or less; the carrying amount approximates fair value.

Securities held to maturity and securities available for sale - The fair values for securities were obtained from an independent broker based upon market prices quoted on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific security but rather on the security’s relationship to other benchmark quoted securities.

Loans held for sale - Loans held for sale are carried at the lower of cost or fair value, which is evaluated on a pool-level basis. The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan or other observable market data, such as outstanding commitments from third party investors.

Loans held for investment – The fair values for performing loans held for investment were obtained from an independent third party based upon an exit price which considered various factors, such as the interest rate of the loan relative to current market rates, the strength of the credit, the underwriting methodology and loan documentation and the ability to liquidate.

Generally, for loans identified as impaired, the fair value of the collateral is used to determine the fair value of the loan. The fair value of the collateral is determined based on recent appraised values. Appraisals for collateral-dependent impaired loans are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by the Company. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Adjustments may relate to location, square footage, condition, amenities, market rate of leases and timing of comparable sales. All appraisals undergo a second review process to ensure that the methodology and the values derived are reasonable. The fair value of the loan is compared to the carrying value to determine if any write-down or specific reserve is required. Impaired loans are evaluated quarterly for additional impairment and adjusted accordingly. Adjustments to fair value are made only when the analysis indicates a probable decline in collateral values.

Mortgage servicing rights - The fair values for mortgage servicing rights are obtained from an independent third-party pricing service. The estimated fair values are derived primarily from cash flow models, which include assumptions for interest rates, credit losses, and prepayment speeds.

Accrued interest receivable and payable - Carrying amount is a reasonable estimate of fair value.

Deposits - The fair value of time deposits is based on the market average at the term nearest the weighted average remaining maturity. For demand and other deposits, the carrying amount is a reasonable estimate of fair value.

Borrowings – Fair values are derived from discounted contractual cash flows using the weighted average remaining maturity.

Commitments to extend credit and letters of credit - The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, considering the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of commitments is immaterial to the financial statements.

The following presents fair value measurements on a recurring basis at March 31, 2021 and September 30, 2020 (in thousands):

			Fair Value Measurements Using
Assets:	March 31, 2021		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Securities available for sale:
U.S. GSE residential mortgage-backed securities	$	932	$	932	$	-
Corporate bonds		6,869		6,869		-
Mortgage servicing rights		130		-		130
Total	$	7,931	$	7,801	$	130

			Fair Value Measurements Using
Assets:	September 30, 2020		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Securities available for sale:
U.S. GSE residential mortgage-backed securities	$	962	$	962	$	-
Corporate bonds		5,073		5,073		-
Mortgage servicing rights		155		-		155
Total	$	6,190	$	6,035	$	155

Reconciliations for mortgage servicing rights measured at fair value on a recurring basis using significant unobservable inputs (Level 3) follow (in thousands).

	Three Months Ended March 31,						Six Months Ended March 31,
	2021			2020			2021			2020
Beginning balance	$	144		$	247		$	155		$	266
Adjustment to fair value		(14	)		(48	)		(25	)		(67	)
Ending balance	$	130		$	199		$	130		$	199

The significant inputs utilized in the cash flow models are based on market data obtained from sources independent of the Company, some of which are unobservable inputs and are therefore classified as Level 3 within the fair value hierarchy. Fair value at March 31, 2021 was determined based on discounted expected future cash flows using discount rates ranging from 12.0% to 14.5%, prepayment speeds ranging from 23.87% to 23.89% and a weighted average life ranging from 2.3 to 3.4 years. Fair value at March 31, 2020 was determined based on discounted expected future cash flows using discount rates ranging from 12.0% to 14.5%, prepayment speeds ranging from 23.40% to 23.83% and a weighted average life ranging from 2.8 to 3.4 years.

The Company had no financial instruments measured at fair value on a non-recurring basis at March 31, 2021 and September 30, 2020. The Company’s impaired loans had no related specific allowances recorded at March 31, 2021 and September 30, 2020.

The following presents the carrying amounts and estimated fair values of the Company’s financial instruments not carried at fair value at March 31, 2021 and September 30, 2020 (in thousands).

			Fair Value Measurements Using
March 31, 2021	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Financial Assets:
Cash and cash equivalents	$	77,529	$	77,529	$	-	$	-	$	77,529
Securities held to maturity		9,470		-		9,777		-		9,777
Loans, net		755,417		-		-		780,793		780,793
Accrued interest receivable		6,490		-		153		6,337		6,490
Financial Liabilities:
Time deposits		305,192		-		306,567		-		306,567
Demand and other deposits		412,992		412,992		-		-		412,992
Borrowings		56,417		-		56,526		-		56,526
Subordinated debentures		24,482		-		26,493		-		26,493
Accrued interest payable		788		1		787		-		788

			Fair Value Measurements Using
September 30, 2020	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Financial Assets:
Cash and cash equivalents	$	80,209	$	80,209	$	-	$	-	$	80,209
Securities held to maturity		10,727		-		11,131		-		11,131
Loans, net		717,150		-		-		746,969		746,969
Accrued interest receivable		6,766		-		218		6,548		6,766
Financial Liabilities:
Time deposits		394,753		-		397,842		-		397,842
Demand and other deposits		270,007		270,007		-		-		270,007
Borrowings		85,154		-		87,052		-		87,052
Note payable		14,984		-		-		15,329		15,329
Accrued interest payable		374		1		339		34		374

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

LOSS CONTINGENCIES	6 Months Ended
LOSS CONTINGENCIES	Mar. 31, 2021
LOSS CONTINGENCIES [Abstract]
LOSS CONTINGENCIES	8. LOSS CONTINGENCIES Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of a loss is probable and an amount or range of loss can be reasonably estimated. The Company’s management does not believe there now are such matters that will have a material effect on the financial statements.

BORROWINGS

6 Months Ended

Mar. 31, 2021

Borrowings [Abstract]

Borrowings

9. BORROWINGS

Federal Home Loan Bank (“FHLB”) Advances

At March 31, 2021 and September 30, 2020, FHLB advances outstanding were $56.4 million and $69.0 million, respectively. The advances were all at fixed rates ranging from 0.37% to 2.96% and from 0.37% to 2.98%, respectively, and with maturities ranging from June 2021 to August 2025 and from October 2020 to August 2025, respectively, at March 31, 2021 and September 30, 2020.

Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $371.7 million and $143.7 million of residential and commercial mortgage loans under a blanket lien arrangement at March 31, 2021 and September 30, 2020, respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow up to an additional total of $154.0 million at March 31, 2021.

The following presents the Company’s outstanding FHLB advances contractual maturities in the fiscal years shown (dollars in thousands):

	At March 31, 2021
Maturity	Amount		Weighted Average Rate
2021	$	22,177		1.51	%
2022		4,000		2.02	%
2023		4,300		1.15	%
2024		18,860		0.98	%
2025		7,080		0.58	%
	$	56,417		1.23	%

Federal Reserve Borrowings

In January 2021, the Company paid off its borrowings from the Federal Reserve’s PPP Liquidity Facility (“PPPLF”). At September 30, 2020, the Company’s borrowings from the PPPLF were $16.2 million. The borrowings had a rate of 0.35% and a maturity date equal to the maturity date of the underlying PPP loan pledged to secure the extension of credit. The Company utilized the PPPLF to partially fund PPP loan production and the borrowings were fully secured by PPP loans.

SUBORDINATED DEBENTURES	6 Months Ended
SUBORDINATED DEBENTURES	Mar. 31, 2021
Subordinated Debentures [Abstract]
Subordinated Debentures	10. SUBORDINATED DEBENTURES In October 2020, the Company completed the private placement of $25.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2030 (the “Notes”) to certain qualified institutional buyers and accredited investors. The Notes will initially bear interest, payable semi-annually, at the rate of 5.00% per annum, until October 15, 2025. From and including October 15, 2025, the interest rate applicable to the outstanding principal amount due will reset quarterly to the then current three-month secured overnight financing rate (“SOFR”) plus 487.4 basis points. The Company may, at its option, beginning with the interest payment date of October 15, 2025 but not generally prior thereto, and on any scheduled interest payment date thereafter, redeem the Notes, in whole or in part, subject to the receipt of any required regulatory approval. The Notes are not subject to redemption at the option of the holder. The Company used a portion of the net proceeds to pay off the existing holding company note in October 2020 and intends to use the remainder of the net proceeds for acquisition financing and general corporate purposes, including contributing equity capital to the Bank. At March 31, 2021, the unamortized issuance costs of the Notes were $518 thousand. For the three and six months ended March 31, 2021, $14 thousand and $27 thousand, respectively, in issuance costs were recorded in interest expense. The Notes are presented net of unamortized issuance costs in the Company’s Consolidated Statements of Financial Condition.

SIGNIFICANT EVENTS	6 Months Ended
SIGNIFICANT EVENTS	Mar. 31, 2021
SIGNIFICANT EVENTS [Abstract]
SIGNIFICANT EVENTS	11. SIGNIFICANT EVENTS On August 27, 2020, the Company, the Bank and Savoy entered into a definitive agreement pursuant to which the Company was to acquire Savoy. This transaction was consummated on May 26, 2021, when Savoy was merged into the Bank in a stock and cash transaction valued at approximately $65.5 million. Under the terms of the agreement, each outstanding share of Savoy common stock was exchanged for a combination of 50% cash consideration and 50% common stock of the Company. Savoy, established in 2008, operated one branch in Rockefeller Center, New York City. The Company issued a total of 1,357,567 shares of its common stock as part of the merger consideration.

BASIS OF PRESENTATION, RISKS AND UNCERTAINTIES, ACCOUNTING POLICIES AND RECENT ACCOUNTING DEVELOPMENTS (Policies)	6 Months Ended
	Mar. 31, 2021
BASIS OF PRESENTATION, RISKS AND UNCERTAINTIES, ACCOUNTING POLICIES AND RECENT ACCOUNTING DEVELOPMENTS [Abstract]
Basis of Presentation	Basis of Presentation In the opinion of the Company’s management, the preceding unaudited interim consolidated financial statements contain all adjustments, consisting of normal accruals, necessary for a fair presentation of the Company’s consolidated statement of financial condition as of March 31, 2021, its consolidated statements of income for the three and six months ended March 31, 2021 and 2020, its consolidated statements of comprehensive income for the three and six months ended March 31, 2021 and 2020, its consolidated statements of changes in stockholders’ equity for the three and six months ended March 31, 2021 and 2020 and its consolidated statements of cash flows for the six months ended March 31, 2021 and 2020. In addition, the preceding unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, as well as in accordance with predominant practices within the banking industry. They do not include all the information and footnotes required by U.S. GAAP for complete financial statements. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates. The results of operations for the three and six months ended March 31, 2021 are not necessarily indicative of the results of operations to be expected for the remainder of the year. All material intercompany accounts and transactions have been eliminated in consolidation. Unless the context otherwise requires, references herein to the Company include the Company and the Bank on a consolidated basis.
Risks and Uncertainties	Risks and Uncertainties In March 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. The COVID-19 pandemic has adversely affected, and may continue to adversely affect, local, national and global economic activity. Actions taken to help mitigate the spread of COVID-19 include restrictions on travel, quarantines and government-mandated closures of various businesses. The spread of the outbreak has caused significant disruptions to the economy and has disrupted banking and other financial activity in the areas in which the Company operates. Also, in March 2020, the Federal Open Market Committee reduced the targeted federal funds interest rate range to between zero and 0.25 percent and the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. The reductions in interest rates and other effects of the COVID-19 pandemic may materially and adversely affect the Company’s financial condition and results of operations in future periods. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial impact will be to the Company. It is possible that estimates made in the financial statements could be materially and adversely impacted due to these conditions, including estimates regarding expected credit losses on loans receivable and impairment of goodwill.
Allowance for Loan Losses	Allowance for Loan Losses – The Company considers the determination of the allowance for loan losses its most critical accounting policy, practice and use of estimates. The Company uses available information to recognize probable and reasonably estimable losses on loans. Future additions to the allowance may be necessary based upon changes in economic, market or other conditions. Changes in estimates could result in a material change in the allowance. The allowance for loan losses is increased by a provision for loan losses charged against income and is decreased by charge-offs, net of recoveries. Loan losses are recognized in the period the loans, or portion thereof, are deemed uncollectible. The adequacy of the allowance to cover any inherent loan losses in the portfolio is evaluated on a quarterly basis.
Loans and Loan Interest Income Recognition	Loans and Loan Interest Income Recognition - Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff, are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs and an allowance for loan losses. The loan portfolio is segmented into residential real estate, multi-family, commercial real estate, commercial and industrial loans and consumer loans. Interest income on loans is accrued and credited to income as earned. Net loan origination fees and costs are deferred and accreted/amortized to interest income over the loan’s contractual life using the level-yield method, adjusted for actual prepayments. Loans that are acquired are initially recorded at fair value with no carryover of the related allowance for loan losses. After acquisition, losses are recognized through the allowance for loan losses. Determining the fair value of the loans involves estimating the amount and timing of expected principal and interest cash flows to be collected on the loans and discounting those cash flows at a market interest rate. The Company has two loans which, at the time of acquisition, showed evidence of credit deterioration since origination. Purchased credit impaired loans were not material at March 31, 2021 and September 30, 2020.
Loans Held for Sale	Loans Held for Sale - Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. Periodically, the Company originates various residential mortgage loans for sale to investors generally on a servicing released basis. The sale of such loans is generally arranged through a master commitment on a best-efforts basis. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Premiums, discounts, origination fees and costs on loans held for sale are deferred and recognized as a component of the gain or loss on sale. Gains and losses on sales of loans held for sale are included in other income, recognized on settlement date and are determined to be the difference between the sale proceeds and the carrying value of the loans. These transactions are accounted for as sales based on satisfaction of the criteria for such accounting which provides that, as transferor, the Company has surrendered control of the loans. For liquidity purposes generally, there are instances when loans originated with the intent to hold in portfolio are subsequently transferred to loans held for sale. At transfer, they are carried at the lower of cost or fair value.
Recent Accounting Developments	Recent Accounting Developments Adoption of New Accounting Standards – In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820), “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in this ASU were effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 with early adoption permitted. The amendments are to be applied on a retrospective basis to all periods presented. The fair value disclosures were updated with the Company’s 2020 adoption of ASU 2018-13, with no material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350), “Simplifying the Test for Goodwill Impairment.” The amendments in this ASU simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the amendments in this ASU, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not exceeding the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The ASU also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. For non-public entities, ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2021 with early adoption permitted. The amendments are to be applied on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition within the first annual period when the entity initially adopts the amendments. The Company adopted ASU 2017-04 on October 1, 2019 and determined that there was no impairment of goodwill under the new method. Recent Accounting Pronouncements - In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), “Measurement of Credit Losses on Financial Instruments,” which sets forth a current expected credit loss (“CECL”) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. This replaces the incurred loss model and will apply to the measurement of credit losses on financial assets measured at amortized cost and to some off-balance sheet credit exposures. For the Company, an emerging growth company electing to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company has been gathering data and will be evaluating data and system requirements to implement this standard. The Company cannot yet determine the overall impact this standard will have on its consolidated financial statements upon adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which amended existing guidance that requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, the lessor accounting model and Topic 606, Revenue from Contracts with Customers. For the Company, an emerging growth company electing to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act, ASU 2016-02 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, with early application permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the adoption impact of ASU 2016-02 on the consolidated financial statements. Based on leases outstanding at March 31, 2021, the Company does not expect adoption to have a material impact on the income statement but does anticipate a material impact to the Company’s consolidated statement of financial condition as a result of recognizing right-of-use assets and lease liabilities.

EARNINGS PER COMMON SHARE (Tables)

6 Months Ended

Mar. 31, 2021

EARNINGS PER COMMON SHARE [Abstract]

Computation of Earnings Per Common Share

	Three Months Ended March 31,				Six Months Ended March 31,
	2021		2020		2021		2020

Basic earnings per common share
Net income	$	2,055	$	249	$	3,574	$	2,019
Weighted average common shares outstanding		4,193,682		4,155,711		4,187,239		4,155,837
Basic earnings per common share	$	0.49	$	0.06	$	0.85	$	0.49

Diluted earnings per common share
Net income	$	2,055	$	249	$	3,574	$	2,019
Weighted average common shares outstanding for basic earnings per common share		4,193,682		4,155,711		4,187,239		4,155,837
Add: dilutive effects of assumed exercises of stock options		65,339		66,247		65,039		64,168
Average shares and dilutive potential common shares		4,259,021		4,221,958		4,252,278		4,220,005
Diluted earnings per common share	$	0.48	$	0.06	$	0.84	$	0.48

SECURITIES (Tables)

6 Months Ended

Mar. 31, 2021

SECURITIES [Abstract]

Investment Securities Available for Sale and Held to Maturity

	March 31, 2021									September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value


Available for sale:
U.S. GSE residential mortgage-backed securities	$	815	$	117	$	-		$	932	$	838	$	124	$	-	$	962
Corporate bonds		6,700		171		(2	)		6,869		5,000		73		-		5,073
Total available for sale securities		7,515		288		(2	)		7,801		5,838		197		-		6,035
Held to maturity:
U.S. GSE residential mortgage-backed securities		3,249		78		-			3,327		4,478		118		-		4,596
U.S. GSE commercial mortgage-backed securities		2,721		200		-			2,921		2,749		253		-		3,002
Corporate bonds		3,500		33		(4	)		3,529		3,500		33		-		3,533
Total held to maturity securities		9,470		311		(4	)		9,777		10,727		404		-		11,131
Total investment securities	$	16,985	$	599	$	(6	)	$	17,578	$	16,565	$	601	$	-	$	17,166

Securities Portfolio by Contractual Maturity

	March 31, 2021
	Amortized Cost		Fair Value
Securities available for sale:
Five to ten years	$	4,700	$	4,869
After ten years		2,000		2,000
U.S. GSE residential mortgage-backed securities		815		932
Total securities available for sale		7,515		7,801
Securities held to maturity:
One to five years		1,500		1,496
Five to ten years		2,000		2,033
U.S. GSE residential mortgage-backed securities		3,249		3,327
U.S. GSE commercial mortgage-backed securities		2,721		2,921
Total securities held to maturity		9,470		9,777
Total investment securities	$	16,985	$	17,578

LOANS (Tables)

6 Months Ended

Mar. 31, 2021

LOANS [Abstract]

Classification of Loans by Loan Portfolio Segment

The following table sets forth the classification of the Company’s loans by loan portfolio segment for the periods presented (in thousands).

	March 31, 2021			September 30, 2020

Residential real estate	$	432,495		$	454,073
Multi-family		175,463			136,539
Commercial real estate		117,762			113,615
Commercial and industrial		38,154			21,100
Consumer		18			24
Gross loans		763,892			725,351
Net deferred fees		(296	)		(332	)
Total loans		763,596			725,019
Allowance for loan losses		(8,179	)		(7,869	)
Total loans, net	$	755,417		$	717,150

Activity in Allowance for Loan Losses by Portfolio Segment

The following summarizes the activity in the allowance for loan losses by portfolio segment for the periods indicated (in thousands).

	Three Months Ended March 31, 2021											Three Months Ended March 31, 2020
	Balance at beginning of period		Charge-offs		Recoveries		(Credit) provision for loan losses			Balance at end of period		Balance at beginning of period		Charge-offs			Recoveries		Provision (credit) for loan losses			Balance at end of period
Residential real estate	$	5,094	$	-	$	-	$	(243	)	$	4,851	$	4,685	$	-		$	-	$	576		$	5,261
Multi-family		1,619		-		-		336			1,955		1,192		-			-		248			1,440
Commercial real estate		1,221		-		-		89			1,310		1,175		-			-		(114	)		1,061
Commercial and industrial		44		-		-		18			62		79		(300	)		-		300			79
Consumer		1		-		-		-			1		12		-			-		(10	)		2
Total	$	7,979	$	-	$	-	$	200		$	8,179	$	7,143	$	(300	)	$	-	$	1,000		$	7,843

	Six Months Ended March 31, 2021											Six Months Ended March 31, 2020
	Balance at beginning of period		Charge-offs		Recoveries		(Credit) provision for loan losses			Balance at end of period		Balance at beginning of period		Charge-offs			Recoveries		Provision (credit) for loan losses			Balance at end of period
Residential real estate	$	5,103	$	-	$	-	$	(252	)	$	4,851	$	4,647	$	-		$	-	$	614		$	5,261
Multi-family		1,506		-		-		449			1,955		1,215		-			-		225			1,440
Commercial real estate		1,221		-		-		89			1,310		1,193		-			-		(132	)		1,061
Commercial and industrial		38		-		10		14			62		75		(300	)		-		304			79
Consumer		1		-		-		-			1		13		-			-		(11	)		2
Total	$	7,869	$	-	$	10	$	300		$	8,179	$	7,143	$	(300	)	$	-	$	1,000		$	7,843

Allowance for Loan Losses and Recorded Investment by Portfolio Segment Based on Impairment Method

	Allowance for Loan Losses						Loan Balances
March 31, 2021	Individually evaluated for impairment		Collectively evaluated for impairment		Ending balance		Individually evaluated for impairment		Collectively evaluated for impairment		Ending balance
Residential real estate	$	-	$	4,851	$	4,851	$	8,494	$	423,982	$	432,476
Multi-family		-		1,955		1,955		1,324		174,455		175,779
Commercial real estate		-		1,310		1,310		1,198		116,768		117,966
Commercial and industrial		-		62		62		-		37,355		37,355
Consumer		-		1		1		-		20		20
Total	$	-	$	8,179	$	8,179	$	11,016	$	752,580	$	763,596

	Allowance for Loan Losses						Loan Balances
September 30, 2020	Individually evaluated for impairment		Collectively evaluated for impairment		Ending balance		Individually evaluated for impairment		Collectively evaluated for impairment		Ending balance
Residential real estate	$	-	$	5,103	$	5,103	$	2,221	$	451,539	$	453,760
Multi-family		-		1,506		1,506		47		136,690		136,737
Commercial real estate		-		1,221		1,221		629		113,129		113,758
Commercial and industrial		-		38		38		334		20,404		20,738
Consumer		-		1		1		-		26		26
Total	$	-	$	7,869	$	7,869	$	3,231	$	721,788	$	725,019

Impaired Loans by Portfolio Segment

The following presents information related to the Company’s impaired loans by portfolio segment for the periods shown (in thousands).

	March 31, 2021						September 30, 2020
	Unpaid Principal Balance		Recorded Investment		Allowance Allocated		Unpaid Principal Balance		Recorded Investment		Allowance Allocated
With no related allowance recorded:
Residential real estate	$	8,494	$	8,494	$	-	$	2,221	$	2,221	$	-
Multi-family		1,324		1,324		-		47		47		-
Commercial real estate		1,198		1,198		-		629		629		-
Commercial and industrial		-		-		-		634		334		-
Total	$	11,016	$	11,016	$	-	$	3,531	$	3,231	$	-

	Three Months Ended March 31,								Six Months Ended March 31,
	2021				2020				2021				2020
	Average recorded investment		Interest income recognized⁽¹⁾		Average recorded investment		Interest income recognized⁽¹⁾		Average recorded investment		Interest income recognized⁽¹⁾		Average recorded investment		Interest income recognized⁽¹⁾
Residential real estate	$	7,880	$	21	$	2,241	$	21	$	6,767	$	43	$	1,977	$	42
Multi-family		1,328		2		72		4		687		3		75		8
Commercial real estate		671		1		596		19		350		2		478		25
Commercial and industrial		-		-		534		-		-		-		584		-
Total	$	9,879	$	24	$	3,443	$	44	$	7,804	$	48	$	3,114	$	75

⁽¹⁾ Accrual basis interest income recognized approximates cash basis income.

Past Due and Non-accrual Loans Disaggregated by Portfolio Segment

At March 31, 2021 and September 30, 2020, past due and non-accrual loans disaggregated by portfolio segment were as follows (dollars in thousands):

	Past Due and Non-Accrual
March 31, 2021	30 - 59 days past due and accruing		60 - 89 days past due and accruing		90 days and over past due and accruing		Non-accrual			Total past due and non-accrual		Current		Total
Residential real estate	$	1,336	$	-	$	-	$	6,828	⁽¹⁾	$	8,164	$	424,312	$	432,476
Multi-family		-		-		-		1,324	⁽²⁾		1,324		174,455		175,779
Commercial real estate		-		-		322		1,198	⁽³⁾		1,520		116,446		117,966
Commercial and industrial		-		-		-		-			-		37,355		37,355
Consumer		-		-		-		-			-		20		20
Total	$	1,336	$	-	$	322	$	9,350		$	11,008	$	752,588	$	763,596

⁽¹⁾ Of the residential real estate non-accrual loans at March 31, 2021, $1,920 were not past due and $4,908 were 90 days or more past due.

⁽²⁾ Of the multi-family non-accrual loans at March 31, 2021, $1,287 were not past due and $37 were 90 days or more past due.

⁽³⁾ Of the commercial real estate non-accrual loans at March 31, 2021, $1,180 were not past due and $18 were 90 days or more past due.

	Past Due and Non-Accrual
September 30, 2020	30 - 59 days past due and accruing		60 - 89 days past due and accruing		90 days and over past due and accruing		Non-accrual		⁽¹⁾	Total past due and non-accrual		Current		Total
Residential real estate	$	4,507	$	-	$	-	$	538		$	5,045	$	448,715	$	453,760
Multi-family		-		-		-		47			47		136,690		136,737
Commercial real estate		-		-		296		34			330		113,428		113,758
Commercial and industrial		-		-		-		334			334		20,404		20,738
Consumer		-		-		-		-			-		26		26
Total	$	4,507	$	-	$	296	$	953		$	5,756	$	719,263	$	725,019

⁽¹⁾ Non-accrual loans at September 30, 2020 were 90 days or more past due.

Loan Portfolio Based on Internal Rating Category

At March 31, 2021 and September 30, 2020, the Company’s loan portfolio by credit risk rating disaggregated by portfolio segment were as follows (dollars in thousands):

	March 31, 2021								September 30, 2020
	Grade								Grade
	Pass		Special mention		Substandard		Total		Pass		Special mention		Substandard		Total
Residential real estate	$	422,760	$	2,888	$	6,828	$	432,476	$	449,524	$	2,893	$	1,343	$	453,760
Multi-family		170,454		4,001		1,324		175,779		135,396		1,294		47		136,737
Commercial real estate		116,154		-		1,812		117,966		111,457		893		1,408		113,758
Commercial and industrial		37,355		-		-		37,355		20,404		-		334		20,738
Consumer		20		-		-		20		26		-		-		26
Total	$	746,743	$	6,889	$	9,964	$	763,596	$	716,807	$	5,080	$	3,132	$	725,019

STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Mar. 31, 2021

STOCK-BASED COMPENSATION [Abstract]

Summary of Stock Option Activity

A summary of stock option activity follows (aggregate intrinsic value in thousands):

	Number of Options		Weighted- Average Exercise Price Per Share		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Term
Outstanding, October 1, 2020		155,506	$	11.35	$	1,623	4.66 years
Granted		-		-
Exercised		-		-
Forfeited		-		-
Outstanding, March 31, 2021 ⁽¹⁾		155,506	$	11.35	$	1,656	4.16 years

⁽¹⁾ All outstanding options are fully vested and exercisable.

Summary of Restricted Stock Activity

A summary of restricted stock activity follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Unvested, October 1, 2020		95,052		$	19.56
Granted		15,727			21.93
Vested		(15,879	)		18.96
Forfeited		(667	)		21.79
Unvested, March 31, 2021		94,233		$	20.04

REGULATORY MATTERS (Tables)

6 Months Ended

Mar. 31, 2021

REGULATORY MATTERS [Abstract]

Capital Amounts and Ratios

The Bank’s capital amounts (in thousands) and ratios are presented in the table that follows.

	Actual					Required for capital adequacy purposes					Excess of amount required for capital adequacy purposes⁽¹⁾					To be Well Capitalized under prompt corrective action regulations
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
March 31, 2021
Total capital to risk-weighted assets	$	109,302		22.49	%	$	38,882		8.00	%	$	70,420		14.49	%	$	48,602		10.00	%
Tier 1 capital to risk-weighted assets		103,199		21.23	%		29,161		6.00	%		74,038		15.23	%		38,882		8.00	%
Common equity tier 1 capital to risk-weighted assets		103,199		21.23	%		21,871		4.50	%		81,328		16.73	%		31,591		6.50	%
Tier 1 capital to adjusted average assets (leverage)		103,199		12.00	%		34,401		4.00	%		N/A		N/A			43,001		5.00	%

September 30, 2020
Total capital to risk-weighted assets	$	95,079		20.57	%	$	36,970		8.00	%	$	58,109		12.57	%	$	46,212		10.00	%
Tier 1 capital to risk-weighted assets		89,275		19.32	%		27,727		6.00	%		61,548		13.32	%		36,970		8.00	%
Common equity tier 1 capital to risk-weighted assets		89,275		19.32	%		20,796		4.50	%		68,479		14.82	%		30,038		6.50	%
Tier 1 capital to adjusted average assets (leverage)		89,275		11.22	%		31,820		4.00	%		N/A		N/A			39,775		5.00	%

⁽¹⁾ The capital conservation buffer is the minimum of the excess amounts shown, that is 14.49% and 12.57% at March 31, 2021 and September 30, 2020, respectively.

FAIR VALUE (Tables)

6 Months Ended

Mar. 31, 2021

FAIR VALUE [Abstract]

Fair Value Measurements on Recurring Basis

The following presents fair value measurements on a recurring basis at March 31, 2021 and September 30, 2020 (in thousands):

			Fair Value Measurements Using
Assets:	March 31, 2021		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Securities available for sale:
U.S. GSE residential mortgage-backed securities	$	932	$	932	$	-
Corporate bonds		6,869		6,869		-
Mortgage servicing rights		130		-		130
Total	$	7,931	$	7,801	$	130

			Fair Value Measurements Using
Assets:	September 30, 2020		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Securities available for sale:
U.S. GSE residential mortgage-backed securities	$	962	$	962	$	-
Corporate bonds		5,073		5,073		-
Mortgage servicing rights		155		-		155
Total	$	6,190	$	6,035	$	155

Reconciliations for Mortgage Servicing Rights Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

Reconciliations for mortgage servicing rights measured at fair value on a recurring basis using significant unobservable inputs (Level 3) follow (in thousands).

	Three Months Ended March 31,						Six Months Ended March 31,
	2021			2020			2021			2020
Beginning balance	$	144		$	247		$	155		$	266
Adjustment to fair value		(14	)		(48	)		(25	)		(67	)
Ending balance	$	130		$	199		$	130		$	199

Carrying Amounts and Estimated Fair Value of Financial Instruments

The following presents the carrying amounts and estimated fair values of the Company’s financial instruments not carried at fair value at March 31, 2021 and September 30, 2020 (in thousands).

			Fair Value Measurements Using
March 31, 2021	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Financial Assets:
Cash and cash equivalents	$	77,529	$	77,529	$	-	$	-	$	77,529
Securities held to maturity		9,470		-		9,777		-		9,777
Loans, net		755,417		-		-		780,793		780,793
Accrued interest receivable		6,490		-		153		6,337		6,490
Financial Liabilities:
Time deposits		305,192		-		306,567		-		306,567
Demand and other deposits		412,992		412,992		-		-		412,992
Borrowings		56,417		-		56,526		-		56,526
Subordinated debentures		24,482		-		26,493		-		26,493
Accrued interest payable		788		1		787		-		788

			Fair Value Measurements Using
September 30, 2020	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Financial Assets:
Cash and cash equivalents	$	80,209	$	80,209	$	-	$	-	$	80,209
Securities held to maturity		10,727		-		11,131		-		11,131
Loans, net		717,150		-		-		746,969		746,969
Accrued interest receivable		6,766		-		218		6,548		6,766
Financial Liabilities:
Time deposits		394,753		-		397,842		-		397,842
Demand and other deposits		270,007		270,007		-		-		270,007
Borrowings		85,154		-		87,052		-		87,052
Note payable		14,984		-		-		15,329		15,329
Accrued interest payable		374		1		339		34		374

BORROWINGS (Tables)

6 Months Ended

Mar. 31, 2021

Borrowings [Abstract]

Outstanding FHLB Advances Contractual Maturities

The following presents the Company’s outstanding FHLB advances contractual maturities in the fiscal years shown (dollars in thousands):

	At March 31, 2021
Maturity	Amount		Weighted Average Rate
2021	$	22,177		1.51	%
2022		4,000		2.02	%
2023		4,300		1.15	%
2024		18,860		0.98	%
2025		7,080		0.58	%
	$	56,417		1.23	%

BASIS OF PRESENTATION, RISKS AND UNCERTAINTIES, ACCOUNTING POLICIES AND RECENT ACCOUNTING DEVELOPMENTS (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2021 USD ($) Loan
Financial Asset Acquired with Credit Deterioration [Member]
Loans and Loan Interest Income Recognition [Abstract]
Number of loans \| Loan	2
Chinatown Federal Savings Bank [Member]
Goodwill Adjustment [Abstract]
Reduction of previously reported goodwill resulting from acquisition \| $	$ (191)

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
EARNINGS PER COMMON SHARE [Abstract]
Antidilutive stock options (in shares)	0	0	0	0
Basic earnings per common share [Abstract]
Net income	$ 2,055	$ 249	$ 3,574	$ 2,019
Weighted average common shares outstanding (in shares)	4,193,682	4,155,711	4,187,239	4,155,837
Basic earnings per common share (in dollars per share)	$ 0.49	$ 0.06	$ 0.85	$ 0.49
Diluted earnings per common share [Abstract]
Net income	$ 2,055	$ 249	$ 3,574	$ 2,019
Weighted average common shares outstanding (in shares)	4,193,682	4,155,711	4,187,239	4,155,837
Add: dilutive effects of assumed exercises of stock options (in shares)	65,339	66,247	65,039	64,168
Average shares and dilutive potential common shares (in shares)	4,259,021	4,221,958	4,252,278	4,220,005
Diluted earnings per common share (in dollars per share)	$ 0.48	$ 0.06	$ 0.84	$ 0.48

SECURITIES, Investment Securities Available for Sale and Held to Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Available for sale [Abstract]
Amortized cost	$ 7,515	$ 5,838
Gross unrealized gains	288	197
Gross unrealized losses	(2)	0
Fair value	7,801	6,035
Held to maturity [Abstract]
Amortized cost	9,470	10,727
Gross unrealized gains	311	404
Gross unrealized losses	(4)	0
Fair value	9,777	11,131
Investment Securities [Abstract]
Amortized cost	16,985	16,565
Gross unrealized gains	599	601
Gross unrealized losses	(6)	0
Fair value	17,578	17,166
Gross unrealized losses in a continuous loss position for less than twelve months	6
Gross unrealized losses in a continuous loss position		0
Investment securities pledged to secure public deposits	1,400	5,600
U.S. GSE Securities [Member]
Available for sale [Abstract]
Amortized cost	815	838
Gross unrealized gains	117	124
Gross unrealized losses	0	0
Fair value	932	962
U.S. GSE Securities [Member] \| Residential Mortgage Backed Securities [Member]
Held to maturity [Abstract]
Amortized cost	3,249	4,478
Gross unrealized gains	78	118
Gross unrealized losses	0	0
Fair value	3,327	4,596
U.S. GSE Securities [Member] \| Commercial Mortgage Backed Securities [Member]
Held to maturity [Abstract]
Amortized cost	2,721	2,749
Gross unrealized gains	200	253
Gross unrealized losses	0	0
Fair value	2,921	3,002
Corporate Bonds [Member]
Available for sale [Abstract]
Amortized cost	6,700	5,000
Gross unrealized gains	171	73
Gross unrealized losses	(2)	0
Fair value	6,869	5,073
Held to maturity [Abstract]
Amortized cost	3,500	3,500
Gross unrealized gains	33	33
Gross unrealized losses	(4)	0
Fair value	$ 3,529	$ 3,533

SECURITIES, Securities Portfolio Presented by Contractual Maturity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2020
Securities Available for Sale, Amortized Cost [Abstract]
Five to ten years	$ 4,700		$ 4,700
After ten years	2,000		2,000
Amortized cost	7,515		7,515		$ 5,838
Securities Available for Sale, Fair Value [Abstract]
Five to ten years	4,869		4,869
After ten years	2,000		2,000
Fair value	7,801		7,801		6,035
Securities Held to Maturity, Amortized Cost [Abstract]
One to five years	1,500		1,500
Five to ten years	2,000		2,000
Amortized cost	9,470		9,470		10,727
Securities Held to Maturity, Fair Value [Abstract]
One to five years	1,496		1,496
Five to ten years	2,033		2,033
Fair value	9,777		9,777		11,131
Investment Securities [Abstract]
Amortized cost	16,985		16,985		16,565
Fair value	17,578		17,578		17,166
Proceeds from sales of securities available for sale	3,200	$ 0	3,240	$ 0
Recognized gross gain	240		240
U.S. GSE Securities [Member]
Securities Available for Sale, Amortized Cost [Abstract]
Amortized cost	815		815		838
Securities Available for Sale, Fair Value [Abstract]
Fair value	932		932		962
U.S. GSE Securities [Member] \| Residential Mortgage Backed Securities [Member]
Securities Available for Sale, Amortized Cost [Abstract]
Without single maturity date	815		815
Securities Available for Sale, Fair Value [Abstract]
Without single maturity date	932		932
Securities Held to Maturity, Amortized Cost [Abstract]
Without single maturity date	3,249		3,249
Amortized cost	3,249		3,249		4,478
Securities Held to Maturity, Fair Value [Abstract]
Without single maturity date	3,327		3,327
Fair value	3,327		3,327		4,596
U.S. GSE Securities [Member] \| Commercial Mortgage Backed Securities [Member]
Securities Held to Maturity, Amortized Cost [Abstract]
Without single maturity date	2,721		2,721
Amortized cost	2,721		2,721		2,749
Securities Held to Maturity, Fair Value [Abstract]
Without single maturity date	2,921		2,921
Fair value	$ 2,921		$ 2,921		$ 3,002

LOANS, Classification of Loans (Details) $ in Thousands	3 Months Ended		6 Months Ended
LOANS, Classification of Loans (Details) $ in Thousands	Mar. 31, 2021 USD ($) Loan	Mar. 31, 2020 USD ($)	Mar. 31, 2021 USD ($) Loan	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	$ 763,892		$ 763,892			$ 725,351
Net deferred fees	(296)		(296)			(332)
Total Loans	763,596		763,596			725,019
Allowance for loan losses	(8,179)	$ (7,843)	(8,179)	$ (7,843)	$ (7,979)	(7,869)	$ (7,143)	$ (7,143)
Loans held for investment, net	755,417		755,417			717,150
Servicing of loans to others	32,200		32,200			26,800
Loans held for sale	893		893			0
Amount from sale of loans	9,400	9,900	17,800	30,100
Recognized net gains amount	$ 295	339	$ 476	902
PPP Loans [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Interest rate	1.00%		1.00%
Number of loans forgiven \| Loan	8		8
Amount of loans forgiven	$ 868		$ 868
PPP Loans [Member] \| Minimum [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Loan term			2 years
PPP Loans [Member] \| Maximum [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Loan term			5 years
Residential Real Estate [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	432,495		$ 432,495			454,073
Total Loans	432,476		432,476			453,760
Allowance for loan losses	(4,851)	(5,261)	(4,851)	(5,261)	(5,094)	(5,103)	(4,685)	(4,647)
Multi-family [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	175,463		175,463			136,539
Total Loans	175,779		175,779			136,737
Allowance for loan losses	(1,955)	(1,440)	(1,955)	(1,440)	(1,619)	(1,506)	(1,192)	(1,215)
Commercial Real Estate [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	117,762		117,762			113,615
Total Loans	117,966		117,966			113,758
Allowance for loan losses	(1,310)	(1,061)	(1,310)	(1,061)	(1,221)	(1,221)	(1,175)	(1,193)
Commercial and Industrial [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	38,154		38,154			21,100
Total Loans	37,355		37,355			20,738
Allowance for loan losses	(62)	(79)	(62)	(79)	(44)	(38)	(79)	(75)
Commercial and Industrial [Member] \| PPP Loans [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	33,500		33,500			17,600
Consumer [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	18		18			24
Total Loans	20		20			26
Allowance for loan losses	$ (1)	$ (2)	$ (1)	$ (2)	$ (1)	$ (1)	$ (12)	$ (13)

LOANS, Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period	$ 7,979	$ 7,143	$ 7,869	$ 7,143
Charge-offs	0	(300)	0	(300)
Recoveries	0	0	10	0
Provision (credit) for loan losses	200	1,000	300	1,000
Balance at end of period	8,179	7,843	8,179	7,843
Residential Real Estate [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period	5,094	4,685	5,103	4,647
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (credit) for loan losses	(243)	576	(252)	614
Balance at end of period	4,851	5,261	4,851	5,261
Multi-family [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period	1,619	1,192	1,506	1,215
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (credit) for loan losses	336	248	449	225
Balance at end of period	1,955	1,440	1,955	1,440
Commercial Real Estate [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period	1,221	1,175	1,221	1,193
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (credit) for loan losses	89	(114)	89	(132)
Balance at end of period	1,310	1,061	1,310	1,061
Commercial and Industrial [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period	44	79	38	75
Charge-offs	0	(300)	0	(300)
Recoveries	0	0	10	0
Provision (credit) for loan losses	18	300	14	304
Balance at end of period	62	79	62	79
Consumer [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period	1	12	1	13
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision (credit) for loan losses	0	(10)	0	(11)
Balance at end of period	$ 1	$ 2	$ 1	$ 2

LOANS, Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019
Allowance for Loan Losses [Abstract]
Ending balance, individually evaluated for impairment	$ 0		$ 0
Ending balance, collectively evaluated for impairment	8,179		7,869
Total ending allowance	8,179	$ 7,979	7,869	$ 7,843	$ 7,143	$ 7,143
Loan Balances [Abstract]
Ending balance, individually evaluated for impairment	11,016		3,231
Ending balance, collectively evaluated for impairment	752,580		721,788
Total Loans	763,596		725,019
Residential Real Estate [Member]
Allowance for Loan Losses [Abstract]
Ending balance, individually evaluated for impairment	0		0
Ending balance, collectively evaluated for impairment	4,851		5,103
Total ending allowance	4,851	5,094	5,103	5,261	4,685	4,647
Loan Balances [Abstract]
Ending balance, individually evaluated for impairment	8,494		2,221
Ending balance, collectively evaluated for impairment	423,982		451,539
Total Loans	432,476		453,760
Multi-family [Member]
Allowance for Loan Losses [Abstract]
Ending balance, individually evaluated for impairment	0		0
Ending balance, collectively evaluated for impairment	1,955		1,506
Total ending allowance	1,955	1,619	1,506	1,440	1,192	1,215
Loan Balances [Abstract]
Ending balance, individually evaluated for impairment	1,324		47
Ending balance, collectively evaluated for impairment	174,455		136,690
Total Loans	175,779		136,737
Commercial Real Estate [Member]
Allowance for Loan Losses [Abstract]
Ending balance, individually evaluated for impairment	0		0
Ending balance, collectively evaluated for impairment	1,310		1,221
Total ending allowance	1,310	1,221	1,221	1,061	1,175	1,193
Loan Balances [Abstract]
Ending balance, individually evaluated for impairment	1,198		629
Ending balance, collectively evaluated for impairment	116,768		113,129
Total Loans	117,966		113,758
Commercial and Industrial [Member]
Allowance for Loan Losses [Abstract]
Ending balance, individually evaluated for impairment	0		0
Ending balance, collectively evaluated for impairment	62		38
Total ending allowance	62	44	38	79	79	75
Loan Balances [Abstract]
Ending balance, individually evaluated for impairment	0		334
Ending balance, collectively evaluated for impairment	37,355		20,404
Total Loans	37,355		20,738
Consumer [Member]
Allowance for Loan Losses [Abstract]
Ending balance, individually evaluated for impairment	0		0
Ending balance, collectively evaluated for impairment	1		1
Total ending allowance	1	$ 1	1	$ 2	$ 12	$ 13
Loan Balances [Abstract]
Ending balance, individually evaluated for impairment	0		0
Ending balance, collectively evaluated for impairment	20		26
Total Loans	$ 20		$ 26

LOANS, Impaired Loans (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Mar. 31, 2021

Mar. 31, 2020

Mar. 31, 2021

Mar. 31, 2020

Sep. 30, 2020

Unpaid principal balance

$ 11,016

$ 3,531

Recorded investment

11,016

3,231

Average recorded investment and interest income recognized [Abstract]

Average recorded investment

9,879

$ 3,443

7,804

$ 3,114

Interest income recognized

^[1]

Residential Real Estate [Member]

Unpaid principal balance

8,494

2,221

Recorded investment

8,494

2,221

Average recorded investment and interest income recognized [Abstract]

Average recorded investment

7,880

2,241

6,767

1,977

Interest income recognized

^[1]

Multi-family [Member]

Unpaid principal balance

1,324

Recorded investment

1,324

Average recorded investment and interest income recognized [Abstract]

Average recorded investment

1,328

687

Interest income recognized

^[1]

Commercial Real Estate [Member]

Unpaid principal balance

1,198

629

Recorded investment

1,198

629

Average recorded investment and interest income recognized [Abstract]

Average recorded investment

671

596

350

478

Interest income recognized

^[1]

Commercial and Industrial [Member]

Unpaid principal balance

634

Recorded investment

$ 334

Average recorded investment and interest income recognized [Abstract]

Average recorded investment

534

584

Interest income recognized

^[1]

$ 0

[1]	Accrual basis interest income recognized approximates cash basis income.

LOANS, Loan Portfolio Past Due and Non-Accrual Loans (Details) - USD ($)
$ in Thousands

Mar. 31, 2021

Sep. 30, 2020

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Non-accrual

$ 9,350

$ 953

^[1]

Total past due and non-accrual

11,008

5,756

Current

752,588

719,263

Total Loans

763,596

725,019

30-59 Days Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Past due

1,336

4,507

60-89 Days Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Past due

90 Days or Over Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

90 days and over past due and accruing

322

296

Residential Real Estate [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Non-accrual

6,828

^[2]

538

^[1]

Total past due and non-accrual

8,164

5,045

Current

424,312

448,715

Total Loans

432,476

453,760

Residential Real Estate [Member] | 30-59 Days Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Past due

1,336

4,507

Residential Real Estate [Member] | 60-89 Days Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Past due

Residential Real Estate [Member] | 90 Days or Over Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

90 days and over past due and accruing

Non-accrual

4,908

Residential Real Estate [Member] | Not Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Non-accrual

1,920

Multi-family [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Non-accrual

1,324

^[3]

^[1]

Total past due and non-accrual

1,324

Current

174,455

136,690

Total Loans

175,779

136,737

Multi-family [Member] | 30-59 Days Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Past due

Multi-family [Member] | 60-89 Days Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Past due

Multi-family [Member] | 90 Days or Over Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

90 days and over past due and accruing

Non-accrual

Multi-family [Member] | Not Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Non-accrual

1,287

Commercial Real Estate [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Non-accrual

1,198

^[4]

^[1]

Total past due and non-accrual

1,520

330

Current

116,446

113,428

Total Loans

117,966

113,758

Commercial Real Estate [Member] | 30-59 Days Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Past due

Commercial Real Estate [Member] | 60-89 Days Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Past due

Commercial Real Estate [Member] | 90 Days or Over Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

90 days and over past due and accruing

322

296

Non-accrual

Commercial Real Estate [Member] | Not Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Non-accrual

1,180

Commercial and Industrial [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Non-accrual

334

^[1]

Total past due and non-accrual

334

Current

37,355

20,404

Total Loans

37,355

20,738

Commercial and Industrial [Member] | 30-59 Days Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Past due

Commercial and Industrial [Member] | 60-89 Days Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Past due

Commercial and Industrial [Member] | 90 Days or Over Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

90 days and over past due and accruing

Consumer [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Non-accrual

^[1]

Total past due and non-accrual

Current

Total Loans

Consumer [Member] | 30-59 Days Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Past due

Consumer [Member] | 60-89 Days Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

Past due

Consumer [Member] | 90 Days or Over Past Due [Member]

Loan Portfolio Past Due and Non-Accrual Loans [Abstract]

90 days and over past due and accruing

$ 0

[1]	Non-accrual loans at September 30, 2020 were 90 days or more past due.
[2]	Of the residential real estate non-accrual loans at March 31, 2021, $1,920 were not past due and $4,908 were 90 days or more past due.
[3]	Of the multi-family non-accrual loans at March 31, 2021, $1,287 were not past due and $37 were 90 days or more past due.
[4]	Of the commercial real estate non-accrual loans at March 31, 2021, $1,180 were not past due and $18 were 90 days or more past due.

LOANS, Troubled Debt Restructurings (Details) $ in Millions	3 Months Ended		6 Months Ended
LOANS, Troubled Debt Restructurings (Details) $ in Millions	Mar. 31, 2021 USD ($) Loan	Mar. 31, 2020 Loan	Mar. 31, 2021 USD ($) Loan	Mar. 31, 2020 Loan	Sep. 30, 2020 USD ($)
Troubled Debt Restructurings [Abstract]
Recorded investment in TDRs	$ 1.7		$ 1.7		$ 1.7
Specific reserves allocated to troubled debt restructurings	0.0		0.0		0.0
Commitments to lend additional funds in troubled debt restructurings	$ 0.0		$ 0.0		$ 0.0
TDR's with subsequent payment default \| Loan	0	0	0	0
Threshold period for payment default	90 days
Number of TDR's \| Loan	0	0	0	0
Modifications Excluded from TDR Classification [Abstract]
Forbearance period of monthly payments	180 days
Additional forbearance period of monthly payments	180 days
COVID-19 [Member]
Modifications Excluded from TDR Classification [Abstract]
Aggregate number of loan modifications made by other than troubled debt restructurings \| Loan	393
Aggregate amount of loan modifications made by other than troubled debt restructurings, aggregate principal balances	$ 220.4		$ 220.4
Number of loans in forbearance \| Loan	36		36
Amount of loans in forbearance	$ 22.8		$ 22.8
Number of loans in forbearance, qualified \| Loan	27		27
Amount of loans in forbearance, qualified	$ 16.0		$ 16.0

LOANS, Loan Portfolio by Credit Risk Rating (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Loans Portfolio by Credit Risk Rating [Abstract]
Total	$ 763,596	$ 725,019
Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	746,743	716,807
Special Mention [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	6,889	5,080
Substandard [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	9,964	3,132
Residential Real Estate [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	432,476	453,760
Residential Real Estate [Member] \| Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	422,760	449,524
Residential Real Estate [Member] \| Special Mention [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	2,888	2,893
Residential Real Estate [Member] \| Substandard [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	6,828	1,343
Multi-family [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	175,779	136,737
Multi-family [Member] \| Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	170,454	135,396
Multi-family [Member] \| Special Mention [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	4,001	1,294
Multi-family [Member] \| Substandard [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	1,324	47
Commercial Real Estate [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	117,966	113,758
Commercial Real Estate [Member] \| Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	116,154	111,457
Commercial Real Estate [Member] \| Special Mention [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	893
Commercial Real Estate [Member] \| Substandard [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	1,812	1,408
Commercial and Industrial [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	37,355	20,738
Commercial and Industrial [Member] \| Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	37,355	20,404
Commercial and Industrial [Member] \| Special Mention [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Commercial and Industrial [Member] \| Substandard [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	334
Consumer [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	20	26
Consumer [Member] \| Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	20	26
Consumer [Member] \| Special Mention [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Consumer [Member] \| Substandard [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	$ 0	$ 0

STOCK-BASED COMPENSATION (Details) - 2018 Plan [Member]	Mar. 31, 2021 shares
Stock-based Compensation [Abstract]
Number of common shares approved for issuance (in shares)	346,000
Number of shares available for issuance (in shares)	207,681

STOCK-BASED COMPENSATION, Stock Option (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

6 Months Ended

12 Months Ended

Mar. 31, 2020

Mar. 31, 2021

Mar. 31, 2020

Sep. 30, 2020

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Cash received from option exercises

$ 0

$ 107

Number of Options [Roll Forward]

Exercised (in shares)

(10,735)

Stock Options [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Award vesting period

3 years

Contractual term

10 years

Intrinsic value of options exercised

$ 127

Cash received from option exercises

107

Tax benefits recognized resulting from option exercises

$ 44

Number of Options [Roll Forward]

Outstanding, beginning of period (in shares)

155,506

Granted (in shares)

Exercised (in shares)

Forfeited (in shares)

Outstanding, end of period (in shares)

155,506

^[1]

155,506

Weighted-Average Exercise Price Per Share [Roll Forward]

Outstanding, beginning of period (in dollars per share)

$ 11.35

Granted (in dollars per share)

Exercised (in dollars per share)

Forfeited (in dollars per share)

Outstanding, end of period (in dollars per share)

$ 11.35

^[1]

$ 11.35

Aggregate intrinsic value, outstanding

$ 1,656

^[1]

$ 1,623

Weighted-average remaining contractual term, outstanding

4 years 1 month 28 days

^[1]

4 years 7 months 28 days

Compensation expenses

$ 5

$ 0

$ 10

[1]	All outstanding options are fully vested and exercisable.

STOCK-BASED COMPENSATION, Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Weighted-Average Grant Date Fair Value [Roll Forward]
Number of shares withheld to pay taxes due upon vesting (in shares)	331		441
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			3 years
Number of Shares [Roll Forward]
Unvested, beginning of period (in shares)			95,052
Granted (in shares)			15,727
Vested (in shares)			(15,879)
Forfeited (in shares)			(667)
Unvested, end of period (in shares)	94,233		94,233
Weighted-Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (in dollars per share)			$ 19.56
Granted (in dollars per share)			21.93
Vested (in dollars per share)			18.96
Forfeited (in dollars per share)			21.79
Unvested, end of period (in dollars per share)	$ 20.04		$ 20.04
Compensation expenses	$ 216	$ 180	$ 445	$ 322
Unrealized compensation cost	$ 1,400		$ 1,400
Weighted-average term for recognizing unrealized compensation cost			1 year 8 months 23 days
Total fair value of shares vested			$ 349	$ 253
Number of shares withheld to pay taxes due upon vesting (in shares)			441	0

REGULATORY MATTERS (Details)
$ in Thousands

3 Months Ended

Mar. 31, 2021

USD ($)

Sep. 30, 2020

USD ($)

Total capital to risk-weighted assets [Abstract]

Actual, Amount

$ 109,302

$ 95,079

Actual, Ratio

0.2249

0.2057

Required for capital adequacy purposes, Amount

$ 38,882

$ 36,970

Required for capital adequacy purposes, Ratio

0.0800

Excess of amount required for capital adequacy purposes, Amount

^[1]

$ 70,420

$ 58,109

Excess of amount required for capital adequacy purposes, Ratio

^[1]

0.1449

0.1257

To be Well Capitalized under prompt corrective action regulations, Amount

$ 48,602

$ 46,212

To be Well Capitalized under prompt corrective action regulations, Ratio

0.1000

Tier 1 capital to risk-weighted assets [Abstract]

Actual, Amount

$ 103,199

$ 89,275

Actual, Ratio

0.2123

0.1932

Required for capital adequacy purposes, Amount

$ 29,161

$ 27,727

Required for capital adequacy purposes, Ratio

0.0600

Excess of amount required for capital adequacy purposes, Amount

^[1]

$ 74,038

$ 61,548

Excess of amount required for capital adequacy purposes, Ratio

^[1]

0.1523

0.1332

To be Well Capitalized under prompt corrective action regulations, Amount

$ 38,882

$ 36,970

To be Well Capitalized under prompt corrective action regulations, Ratio

0.0800

Common equity tier 1 capital to risk-weighted assets [Abstract]

Actual, Amount

$ 103,199

$ 89,275

Actual, Ratio

0.2123

0.1932

Required for capital adequacy purposes, Amount

$ 21,871

$ 20,796

Required for capital adequacy purposes, Ratio

0.0450

Excess of amount required for capital adequacy purposes, Amount

^[1]

$ 81,328

$ 68,479

Excess of amount required for capital adequacy purposes, Ratio

^[1]

0.1673

0.1482

To be Well Capitalized under prompt corrective action regulations, Amount

$ 31,591

$ 30,038

To be Well Capitalized under prompt corrective action regulations, Ratio

0.0650

Tier 1 capital to adjusted average assets (leverage) [Abstract]

Actual, Amount

$ 103,199

$ 89,275

Actual, Ratio

0.1200

0.1122

Required for capital adequacy purposes, Amount

$ 34,401

$ 31,820

Required for capital adequacy purposes, Ratio

0.0400

To be Well Capitalized under prompt corrective action regulations, Amount

$ 43,001

$ 39,775

To be Well Capitalized under prompt corrective action regulations, Ratio

0.0500

Capital conservation buffer

0.1449

0.1257

Retained earnings available to pay dividends

$ 20,600

[1]	The capital conservation buffer is the minimum of the excess amounts shown, that is 14.49% and 12.57% at March 31, 2021 and September 30, 2020, respectively.

FAIR VALUE, Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Assets [Abstract]
Securities available for sale	$ 7,801	$ 6,035
U.S. GSE Securities [Member]
Assets [Abstract]
Securities available for sale	932	962
Corporate Bonds [Member]
Assets [Abstract]
Securities available for sale	6,869	5,073
Recurring [Member]
Assets [Abstract]
Total assets	7,931	6,190
Recurring [Member] \| U.S. GSE Securities [Member] \| Residential Mortgage Backed Securities [Member]
Assets [Abstract]
Securities available for sale	932	962
Recurring [Member] \| Corporate Bonds [Member]
Assets [Abstract]
Securities available for sale	6,869	5,073
Recurring [Member] \| Mortgage Servicing Rights [Member]
Assets [Abstract]
Mortgage servicing rights	130	155
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Total assets	7,801	6,035
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| U.S. GSE Securities [Member] \| Residential Mortgage Backed Securities [Member]
Assets [Abstract]
Securities available for sale	932	962
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Corporate Bonds [Member]
Assets [Abstract]
Securities available for sale	6,869	5,073
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Mortgage Servicing Rights [Member]
Assets [Abstract]
Mortgage servicing rights	0	0
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
Total assets	130	155
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| U.S. GSE Securities [Member] \| Residential Mortgage Backed Securities [Member]
Assets [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Corporate Bonds [Member]
Assets [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Mortgage Servicing Rights [Member]
Assets [Abstract]
Mortgage servicing rights	$ 130	$ 155

FAIR VALUE, Reconciliations for Mortgage Servicing Rights Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Reconciliations for Mortgage Servicing Rights Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) [Roll Forward]
Beginning balance	$ 144	$ 247	$ 155	$ 266
Adjustment to fair value	(14)	(48)	(25)	(67)
Ending balance	$ 130	$ 199	$ 130	$ 199

FAIR VALUE, Significant Inputs Utilized in Cash Flow Models (Details)	6 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2020	Sep. 30, 2020 USD ($)
Fair Value Hierarchy [Abstract]
Servicing Asset, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Impaired loans, related specific allowance	$ 0		$ 0
Significant Unobservable Inputs (Level 3) [Member] \| Discount Rate [Member] \| Minimum [Member]
Fair Value Hierarchy [Abstract]
Mortgage servicing rights, measurement input	0.1200	0.1200
Significant Unobservable Inputs (Level 3) [Member] \| Discount Rate [Member] \| Maximum [Member]
Fair Value Hierarchy [Abstract]
Mortgage servicing rights, measurement input	0.1450	0.1450
Significant Unobservable Inputs (Level 3) [Member] \| Prepayment Rate [Member] \| Minimum [Member]
Fair Value Hierarchy [Abstract]
Mortgage servicing rights, measurement input	0.2387	0.2340
Significant Unobservable Inputs (Level 3) [Member] \| Prepayment Rate [Member] \| Maximum [Member]
Fair Value Hierarchy [Abstract]
Mortgage servicing rights, measurement input	0.2389	0.2383
Significant Unobservable Inputs (Level 3) [Member] \| Weighted Average Life [Member] \| Minimum [Member]
Fair Value Hierarchy [Abstract]
Mortgage servicing rights, measurement input	2 years 3 months 18 days	2 years 9 months 18 days
Significant Unobservable Inputs (Level 3) [Member] \| Weighted Average Life [Member] \| Maximum [Member]
Fair Value Hierarchy [Abstract]
Mortgage servicing rights, measurement input	3 years 4 months 24 days	3 years 4 months 24 days
Nonrecurring [Member]
Fair Value Hierarchy [Abstract]
Financial instruments measured at fair value	$ 0		$ 0

FAIR VALUE, Carrying Amounts and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Carrying Amount [Member]
Financial Assets [Abstract]
Cash and cash equivalents	$ 77,529	$ 80,209
Securities held to maturity	9,470	10,727
Loans, net	755,417	717,150
Accrued interest receivable	6,490	6,766
Financial Liabilities [Abstract]
Time deposits	305,192	394,753
Demand and other deposits	412,992	270,007
Borrowings	56,417	85,154
Subordinated debentures	24,482
Note payable		14,984
Accrued interest payable	788	374
Fair Value [Member]
Financial Assets [Abstract]
Cash and cash equivalents	77,529	80,209
Securities held to maturity	9,777	11,131
Loans, net	780,793	746,969
Accrued interest receivable	6,490	6,766
Financial Liabilities [Abstract]
Time deposits	306,567	397,842
Demand and other deposits	412,992	270,007
Borrowings	56,526	87,052
Subordinated debentures	26,493
Note payable		15,329
Accrued interest payable	788	374
Fair Value [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial Assets [Abstract]
Cash and cash equivalents	77,529	80,209
Securities held to maturity	0	0
Loans, net	0	0
Accrued interest receivable	0	0
Financial Liabilities [Abstract]
Time deposits	0	0
Demand and other deposits	412,992	270,007
Borrowings	0	0
Subordinated debentures	0
Note payable		0
Accrued interest payable	1	1
Fair Value [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Financial Assets [Abstract]
Cash and cash equivalents	0	0
Securities held to maturity	9,777	11,131
Loans, net	0	0
Accrued interest receivable	153	218
Financial Liabilities [Abstract]
Time deposits	306,567	397,842
Demand and other deposits	0	0
Borrowings	56,526	87,052
Subordinated debentures	26,493
Note payable		0
Accrued interest payable	787	339
Fair Value [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Financial Assets [Abstract]
Cash and cash equivalents	0	0
Securities held to maturity	0	0
Loans, net	780,793	746,969
Accrued interest receivable	6,337	6,548
Financial Liabilities [Abstract]
Time deposits	0	0
Demand and other deposits	0	0
Borrowings	0	0
Subordinated debentures	0
Note payable		15,329
Accrued interest payable	$ 0	$ 34

BORROWINGS (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Outstanding FHLB Advances Contractual Maturities, Amount [Abstract]
2021	$ 22,177
2022	4,000
2023	4,300
2024	18,860
2025	7,080
FHLB advances outstanding	$ 56,417	$ 69,000
Outstanding FHLB Advances Contractual Maturities, Weighted Average Rate [Abstract]
2021	1.51%
2022	2.02%
2023	1.15%
2024	0.98%
2025	0.58%
Weighted average rate	1.23%
Additional eligible borrowings from FHLB	$ 154,000
Federal Reserve Borrowings [Abstract]
Borrowings	$ 56,417	$ 85,154
Federal Home Loan Bank Advances [Member]
Federal Home Loan Bank ("FHLB") Advances [Abstract]
Maturity date, earliest	2021	2020
Maturity date, last	2025	2025
PPPLF [Member]
Federal Reserve Borrowings [Abstract]
Borrowings		$ 16,200
Borrowing rate of interest		0.35%
Minimum [Member]
Federal Home Loan Bank ("FHLB") Advances [Abstract]
Interest rate	0.37%	0.37%
Maximum [Member]
Federal Home Loan Bank ("FHLB") Advances [Abstract]
Interest rate	2.96%	2.98%
Residential and Commercial Mortgage Loans [Member]
Federal Home Loan Bank ("FHLB") Advances [Abstract]
Amount of the collateral pledged	$ 371,700	$ 143,700

SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2021	Mar. 31, 2020	Oct. 31, 2020
Debt Instruments [Abstract]
Issuance costs recorded in interest expense		$ 43	$ 1
Subordinated Notes [Member]
Debt Instruments [Abstract]
Unamortized issuance costs	$ 518	518
Issuance costs recorded in interest expense	$ 14	$ 27
Subordinated Notes [Member] \| Private Placement [Member]
Debt Instruments [Abstract]
Aggregate principal amount				$ 25,000
Debt instrument, maturity date		Dec. 31, 2030
Subordinated Notes [Member] \| Private Placement [Member] \| Until October 15, 2025 [Member]
Debt Instruments [Abstract]
Borrowing rate of interest				5.00%
Subordinated Notes [Member] \| Private Placement [Member] \| From and Including October 15, 2025 [Member] \| Secured Overnight Financing Rate [Member]
Debt Instruments [Abstract]
Basis spread on variable rate		4.874%
Term of variable rate		3 months

SIGNIFICANT EVENTS (Details) - Subsequent Event [Member] - Savoy Bank [Member] $ in Millions	May 26, 2021 USD ($) Branch shares
Significant Events [Abstract]
Consideration transferred \| $	$ 65.5
Percentage of consideration in cash issued for each share of acquiree common stock	50.00%
Percentage of consideration in common stock issued for each share of acquiree common stock	50.00%
Number of branches \| Branch	1
Common stock issued as part of merger consideration (in shares) \| shares	1,357,567