0001567619-22-002679 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Dec. 31, 2021	Feb. 07, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2021
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	333-252262
Entity Registrant Name	Hanover Bancorp, Inc. /NY
Entity Central Index Key	0001828588
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	81-3324480
Entity Address, Address Line One	80 East Jericho Turnpike
Entity Address, City or Town	Mineola
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11501
City Area Code	516
Local Phone Number	548-8500
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		5,828,203

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
ASSETS
Cash and non-interest-bearing deposits due from banks	$ 7,794	$ 8,302
Interest-bearing deposits due from banks	106,973	142,950
Federal funds sold	184	15,292
Total cash and cash equivalents	114,951	166,544
Securities:
Held to maturity (fair value of $5,008 and $8,865, respectively)	4,834	8,611
Available for sale, at fair value	7,536	7,747
Total securities	12,370	16,358
Loans held for investment	1,277,434	1,247,125
Allowance for loan losses	(9,386)	(8,552)
Loans held for investment, net	1,268,048	1,238,573
Premises and equipment, net	14,895	15,003
Accrued interest receivable	8,858	9,363
Prepaid pension	4,233	4,233
Stock in Federal Home Loan Bank, at cost	4,057	3,714
Goodwill	19,168	19,168
Other intangible assets	459	480
Loan servicing rights	3,741	3,690
Deferred income taxes	3,025	3,558
Other assets	4,375	3,957
TOTAL ASSETS	1,458,180	1,484,641
Deposits [Abstract]
Non-interest-bearing demand	190,724	191,537
Savings, NOW and money market	659,144	595,289
Time	326,883	377,836
Total deposits	1,176,751	1,164,662
Borrowings	113,274	159,642
Subordinated debentures	24,504	24,513
Accrued interest payable	879	1,290
Other liabilities	13,393	12,005
TOTAL LIABILITIES	1,328,801	1,362,112
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 5,562,799 and 5,563,426, respectively)	56	56
Surplus	97,505	97,246
Retained earnings	31,508	24,971
Accumulated other comprehensive income, net of tax	310	256
TOTAL STOCKHOLDERS' EQUITY	129,379	122,529
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,458,180	$ 1,484,641

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
Securities:
Held to maturity, fair value	$ 5,008	$ 8,865
STOCKHOLDERS' 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)	5,562,799	5,563,426
Common stock, shares outstanding (in shares)	5,562,799	5,563,426

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
INTEREST INCOME
Loans	$ 16,381	$ 9,258
Taxable securities	154	173
Federal funds sold	1	0
Other interest income	80	66
Total interest income	16,616	9,497
INTEREST EXPENSE
Savings, NOW and money market deposits	366	117
Time deposits	491	1,454
Borrowings	490	599
Total interest expense	1,347	2,170
Net interest income	15,269	7,327
Provision for loan losses	900	100
Net interest income after provision for loan losses	14,369	7,227
NON-INTEREST INCOME
Loan servicing and fee income	690	83
Service charges on deposit accounts	63	15
Gain on sale of loans held-for-sale	1,492	181
Other income	130	7
Total non-interest income	2,375	286
NON-INTEREST EXPENSE
Salaries and employee benefits	4,939	3,108
Occupancy and equipment	1,413	1,171
Data processing	366	245
Advertising and promotion	33	48
Acquisition costs	0	145
Professional fees	499	412
Other expenses	1,014	461
Total non-interest expense	8,264	5,590
Income before income tax expense	8,480	1,923
Income tax expense	1,943	404
NET INCOME	$ 6,537	$ 1,519
EARNINGS PER COMMON SHARE - BASIC (in dollars per share)	$ 1.18	$ 0.36
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share)	$ 1.16	$ 0.36

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]
Net income	$ 6,537	$ 1,519
Other comprehensive income, net of tax:
Change in unrealized gain on securities available for sale arising during the period, net of tax of $18 and $45, respectively	54	167
Total other comprehensive income, net of tax	54	167
Total comprehensive income, net of tax	$ 6,591	$ 1,686

- 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 (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Other comprehensive income, net of tax:
Unrealized gain on securities available for sale arising during the period, net of tax	$ 18	$ 45

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common Stock [Member]	Surplus [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Total
Balance at Sep. 30, 2020	$ 42	$ 63,725	$ 14,120	$ 156	$ 78,043
Balance (in shares) at Sep. 30, 2020	4,175,144
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	1,519	0	1,519
Other comprehensive income, net of tax	0	0	0	167	167
Stock-based compensation	$ 0	229	0	0	229
Stock-based compensation (in shares)	7,390
Issuance of common stock	$ 0	66	0	0	66
Issuance of common stock (in shares)	3,000
Balance at Dec. 31, 2020	$ 42	64,020	15,639	323	80,024
Balance (in shares) at Dec. 31, 2020	4,185,534
Balance at Sep. 30, 2021	$ 56	97,246	24,971	256	122,529
Balance (in shares) at Sep. 30, 2021	5,563,426
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	6,537	0	6,537
Other comprehensive income, net of tax	0	0	0	54	54
Stock-based compensation	$ 0	217	0	0	217
Stock-based compensation (in shares)	(3,011)
Issuance of common stock in lieu of directors' fees	$ 0	42	0	0	42
Issuance of common stock in lieu of directors' fees (in shares)	2,384
Balance at Dec. 31, 2021	$ 56	$ 97,505	$ 31,508	$ 310	$ 129,379
Balance (in shares) at Dec. 31, 2021	5,562,799

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 6,537	$ 1,519
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for loan losses	900	100
Depreciation and amortization	397	344
Originations of loans held for sale	0	(12,279)
Proceeds from sales of loans held for sale	0	8,286
Net gain on sale of loans	(1,492)	(181)
Stock-based compensation	217	229
Net accretion of premiums, discounts and loan fees and costs	(1,640)	(105)
Amortization of intangible assets	21	1
Amortization of debt issuance costs	22	30
Loan servicing rights valuation adjustments	117	11
Deferred tax expense	526	0
Decrease in accrued interest receivable	505	165
Decrease (increase) in other assets	(597)	827
Increase (decrease) in accrued interest payable	(411)	180
Increase in other liabilities	1,357	716
Net cash provided by (used in) operating activities	6,459	(157)
Cash flows from investing activities:
Purchases of securities available for sale	0	(1,200)
Purchases of restricted securities	(1,081)	0
Principal repayments of securities held to maturity	3,775	720
Principal repayments of securities available for sale	275	9
Redemptions of restricted securities	738	469
Proceeds from sales of loans	36,704	334
Net increase in loans	(64,330)	(3,919)
Purchases of premises and equipment	(289)	(514)
Net cash used in investing activities	(24,208)	(4,101)
Cash flows from financing activities:
Net increase in deposits	12,437	23,556
Advances of term FHLB borrowings	20,000	0
Repayments of Federal Home Loan Bank advances	(14,000)	(10,390)
Repayments of Federal Reserve Bank borrowings	(52,323)	(250)
Proceeds from issuance of subordinated debentures, net of issuance costs	0	24,455
Repayment of note payable	0	(15,000)
Net proceeds from issuance of common stock	42	66
Net cash provided by (used in) financing activities	(33,844)	22,437
Net increase (decrease) in cash and cash equivalents	(51,593)	18,179
Cash and cash equivalents, beginning of period	166,544	80,209
Cash and cash equivalents, end of period	114,951	98,388
Supplemental cash flow information:
Interest paid	1,758	1,990
Income taxes paid	0	36
Supplemental non-cash disclosure:
Transfers from portfolio loans to loans held-for-sale	$ 35,212	$ 334

BASIS OF PRESENTATION, RISKS AND UNCERTAINTIES, ACCOUNTING POLICIES AND RECENT ACCOUNTING DEVELOPMENTS	3 Months Ended
	Dec. 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, 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 New York State chartered, non-Federal Reserve member 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 regulation and examination by the Board of Governors of the Federal Reserve System (the “FRB”). 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 December 31, 2021, its consolidated statements of income for the three months ended December 31, 2021 and 2020, its consolidated statements of comprehensive income for the three months ended December 31, 2021 and 2020, its consolidated statements of changes in stockholders’ equity for the three months ended December 31, 2021 and 2020 and its consolidated statements of cash flows for the three months ended December 31, 2021 and 2020. Certain prior period amounts have been reclassified to conform to the current period presentation. 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 months ended December 31, 2021 are not necessarily indicative of the results of operations to be expected for the remainder of the year. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2021. 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 local, national and global economic activity. Various actions taken to help mitigate the spread of COVID-19 included restrictions on travel, quarantines and government-mandated closures of various businesses. The outbreak caused significant disruptions to the economy and disrupted banking and other financial activity in the areas in which the Company operates. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in March 2020 to, among other things, provide emergency assistance to individuals, families and businesses affected by the COVID-19 pandemic. The ongoing effects of the COVID-19 pandemic may materially and adversely affect the Company’s financial condition and results of operations in future periods, and it is unknown what the complete financial impact will be to the Company. The extent of such impact will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the coronavirus, the new “waves” of COVID-19 infections, the spread of new variants of the virus, and the distribution of vaccines and vaccination rates, among others. It is possible that estimates made in the financial statements could be materially and adversely impacted due to these conditions. 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, construction and land development, 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. At December 31, 2021 and September 30, 2021, the Company had loans totaling $5.5 million and $10.2 million, respectively, which at the time of acquisition, showed evidence of credit deterioration since origination. 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 the 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 In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The amendments introduce an impairment model that is based on current expected credit losses (“CECL”), rather than incurred losses, to estimate credit losses on certain types of financial instruments (i.e. loans and held to maturity securities), including certain off-balance sheet financial instruments (i.e. commitments to extend credit and standby letters of credit that are not unconditionally cancellable). The CECL standard should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Financial instruments with similar risk characteristics may be grouped together when estimating credit losses. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial estimate of expected credit loss would be recognized through an allowance for credit losses with an offset (i.e. increase) to the purchase price at acquisition. Only subsequent changes in the allowance for credit losses are recorded as provision for loan losses for these assets. The ASU also amends the current available for sale security impairment model for debt securities whereby credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. The amendments will be applied through a modified retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. As the Company is a smaller-reporting company under SEC regulations, the Company will adopt CECL on October 1, 2023 and the future adoption of this ASU may have a material effect on the Company’s consolidated financial statements. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases. The amendments in this update primarily replace the existing accounting requirements for operating leases for lessees. Lessee accounting requirements for finance leases and lessor accounting requirements for operating leases and sales type and direct financing leases (sales-type and direct financing leases were both previously referred to as capital leases) are largely unchanged. The amendments require the lessee of an operating lease to record a balance sheet gross-up upon lease commencement by recognizing a right-of-use asset and lease liability equal to the present value of the lease payments. The right-of-use asset and lease liability should be derecognized in a manner that effectively yields a straight-line lease expense over the lease term. In addition to the changes to the lessee operating lease accounting requirements, the amendments also change the types of costs that can be capitalized related to a lease agreement for both lessees and lessors. The amendments also require additional disclosures for all lease types for both lessees and lessors. The FASB has subsequently issued additional ASUs intended to clarify guidance, provide implementation support, and provide an additional transition election. The amendments are effective on October 1, 2022, with early adoption permitted. The amendments must be applied on a modified retrospective basis, and we anticipate selecting the transition option that will allow us to record a cumulative adjustment as of the adoption date. We are assessing our current population of lease contracts and upon adoption, our balance sheet will include a right-of-use asset and lease liability for our operating leases where we are the lessee, which primarily include our facilities leases. We do not anticipate the adoption of these amendments will have a material impact to our consolidated financial statements. We plan to adopt these amendments on October 1, 2022 and expect to use the modified retrospective approach as currently required.

BUSINESS COMBINATIONS

3 Months Ended

Dec. 31, 2021

BUSINESS COMBINATIONS [Abstract]

BUSINESS COMBINATIONS

2. BUSINESS COMBINATIONS

On May 26, 2021, the Company completed its previously announced acquisition of Savoy Bank pursuant to an Agreement and Plan of Merger (the “Merger Agreement”), dated as of August 27, 2020, as amended, between the Company, the Bank and Savoy. Pursuant to the Merger Agreement, Savoy was merged with and into the Bank, with the Bank surviving, in a two-step transaction (collectively, the “Merger”).

The purchase price in the transaction was based upon the tangible book values of each of the Company and Savoy as of April 30, 2021 and calculated in accordance with the terms of the Merger Agreement. At the effective time of the Merger (the “Effective Time”), each share of Savoy common stock, $1.00 par value (“Savoy Common Stock”) was converted into the right to receive (i) $3.246 in cash and (ii) 0.141 shares of the Company’s common stock. The final aggregate purchase price was $65.5 million, or $6.49 per Savoy share.

A preliminary summary of the fair value of assets received and liabilities assumed are as follows:

(in thousands)	As Recorded by Savoy		Fair Value Adjustments				As Recorded by Hanover
Assets
Cash and due from banks	$	59,155	$	-			$	59,155
Investment securities available-for-sale		239		-				239
Loans held for sale		3,883		-				3,883
Loans held for investment		569,251		8,612		(a)		577,863
Premises and equipment, net		234		(22	)	(b)		212
Core deposit intangible		-		490		(c)		490
Accrued interest receivable		5,171		(650	)	(d)		4,521
Other assets		10,432		(2,925	)	(e)		7,507
Total assets acquired	$	648,365	$	5,505				653,870

Liabilities
Deposits	$	340,215	$	2,527		(f)		342,742
Borrowings		258,247		301		(g)		258,548
Accrued interest payable		1,050		-				1,050
Other liabilities and accrued expenses		3,817		(342	)	(h)		3,475
Total liabilities assumed	$	603,329	$	2,486				605,815

Net assets acquired								48,055
Total consideration								65,512
Goodwill							$	17,457

(a)	Represents the fair value adjustments on net book value of loans, which includes an interest rate mark and credit mark adjustment, the write-off of deferred fees/costs and premiums and the elimination of Savoy’s allowance for loan losses.

(b)	Represents the fair value adjustments to reflect the fair value of premises and equipment.

(c)	Represents the fair value of core deposit intangible recorded, which will be amortized on an accelerated basis over the estimated average life of the deposit base.

(d)	Represents an adjustment to accrued interest receivable acquired.

(e)	Represents an adjustment to other assets acquired. The largest adjustment was the net deferred tax assets resulting from the fair value adjustment related to the acquired assets, liabilities assumed, and identifiable intangible assets recorded.

(f)	Represents the fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits.

(g)	Represents the fair value adjustments on an FHLB borrowing, which will be treated as a reduction to interest expense over the life of the borrowing.

(h)	Represents an adjustment to other liabilities assumed.

A summary of total consideration paid is as follows:

(in thousands, except share data)
Common stock issued (1,357,567 shares issued)	$	32,521
Cash payments to common shareholders		32,991
Total consideration paid	$	65,512

With the Savoy acquisition, the Company significantly expanded its commercial banking and Small Business Administration (“SBA”) lending capabilities. None of the goodwill associated with this acquisition is deductible for income tax purposes. All goodwill related to this acquisition was allocated to the Company’s only reporting unit, which is the Company as a whole.

The estimated fair values are subject to refinement for up to one year after the closing date of the acquisition as additional information regarding closing date fair value becomes available. During this one-year period, the causes of any changes in cash flow estimates are considered to determine whether the change results from circumstances that existed at the acquisition date or if the change results from an event that occurred after the acquisition date.

The Company has determined the above noted acquisition constitutes a business combination as defined by ASC Topic 805, which establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired and the liabilities assumed. The Company has recorded the assets purchased and liabilities assumed at their estimated fair value in accordance with ASC Topic 805.

The following is a summary of the loans accounted for in accordance with ASC 310-30 that were acquired in the Savoy acquisition as of the merger date:

(in thousands)
Contractually required principal and interest at acquisition	$	14,416
Contractual cash flows not expected to be collected (non-accretable discount)		(3,467	)
Expected cash flows at acquisition		10,949
Interest component of expected cash flows (accretable discount)		(540	)
Fair value of acquired purchased credit impaired loans	$	10,409

EARNINGS PER COMMON SHARE

3 Months Ended

Dec. 31, 2021

EARNINGS PER COMMON SHARE [Abstract]

EARNINGS PER COMMON SHARE

3. 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 months ended December 31, 2021 and 2020 follows. There were no stock options that were antidilutive for the three months ended December 31, 2021 and 2020.

	Three Months Ended December 31,
	2021		2020
(in thousands, except share and per share data)
Basic earnings per common share
Net income	$	6,537	$	1,519
Weighted average common shares outstanding		5,562,939		4,180,936
Basic earnings per common share	$	1.18	$	0.36

Diluted earnings per common share
Net income	$	6,537	$	1,519
Weighted average common shares outstanding for basic earnings per common share		5,562,939		4,180,936
Add: dilutive effects of assumed exercises of stock options		95,489		64,860
Average shares and dilutive potential common shares		5,658,428		4,245,796
Diluted earnings per common share	$	1.16	$	0.36

SECURITIES

3 Months Ended

Dec. 31, 2021

SECURITIES [Abstract]

SECURITIES

4. 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 following table summarizes the amortized cost and fair value of securities available for sale and securities held to maturity at December 31, 2021 and September 30, 2021 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income:

	December 31, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale:
U.S. GSE residential mortgage-backed securities	$	439	$	78	$	(2	)	$	515
Corporate bonds		6,700		321		-			7,021
Total available for sale securities	$	7,139	$	399	$	(2	)	$	7,536

Held to maturity:
U.S. GSE residential mortgage-backed securities	$	2,154	$	48	$	-		$	2,202
U.S. GSE commercial mortgage-backed securities		2,680		126		-			2,806
Total held to maturity securities		4,834		174		-			5,008
Total investment securities	$	11,973	$	573	$	(2	)	$	12,544

	September 30, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale:
U.S. GSE residential mortgage-backed securities	$	722	$	112	$	(1	)	$	833
Corporate bonds		6,700		214		-			6,914
Total available for sale securities	$	7,422	$	326	$	(1	)	$	7,747

Held to maturity:
U.S. GSE residential mortgage-backed securities	$	2,417	$	74	$	-		$	2,491
U.S. GSE commercial mortgage-backed securities		2,694		175		-			2,869
Corporate bonds		3,500		9		(4	)		3,505
Total held to maturity securities		8,611		258		(4	)		8,865
Total investment securities	$	16,033	$	584	$	(5	)	$	16,612

All of the Company’s securities with gross unrealized losses at December 31, 2021 and September 30, 2021 had been in a continuous loss position for less than twelve months and such unrealized losses totaling $2 thousand and $5 thousand, respectively are immaterial to the Company’s consolidated financial statements. At December 31, 2021 and September 30, 2021, investment securities carried at $4.8 million and $5.1 million, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

The amortized cost and fair value of the Company’s securities portfolio at December 31, 2021 are presented by contractual maturity in the table below. The expected life of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay the underlying mortgage loans with or without call or prepayment penalties.

	December 31, 2021
(in thousands)	Amortized Cost		Fair Value
Securities available for sale:
Five to ten years	$	6,700	$	7,021
U.S. GSE residential mortgage-backed securities		439		515
Total securities available for sale		7,139		7,536
Securities held to maturity:
One to five years		-		-
Five to ten years		-		-
U.S. GSE residential mortgage-backed securities		2,154		2,202
U.S. GSE commercial mortgage-backed securities		2,680		2,806
Total securities held to maturity		4,834		5,008
Total investment securities	$	11,973	$	12,544

There were no sales of securities for the three months ended December 31, 2021 and 2020.

LOANS

3 Months Ended

Dec. 31, 2021

LOANS [Abstract]

LOANS

5. LOANS

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

	December 31, 2021			September 30, 2021
(in thousands)
Residential real estate	$	436,348		$	444,011
Multi-family		358,456			266,294
Commercial real estate		360,610			348,641
Commercial and industrial		109,562			172,274
Construction and land development		11,444			15,374
Consumer		29			11
Gross loans		1,276,449			1,246,605
Net deferred costs (fees)		985			520
Total loans		1,277,434			1,247,125
Allowance for loan losses		(9,386	)		(8,552	)
Total loans, net	$	1,268,048		$	1,238,573

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, subject to extension to five years with the consent of the lender) or five years (loans made on or after June 5, 2020), if not forgiven, in whole or in part. As of December 31, 2021, borrowers had applied for and received forgiveness on $293.2 million in PPP loans. The Company’s PPP loans outstanding, included in commercial and industrial loans in the table above, totaled $72.9 million and $140.4 million at December 31, 2021 and September 30, 2021, respectively.

At December 31, 2021 and September 30, 2021, the Company was servicing approximately $241.2 million and $233.2 million, respectively, of loans for others. The Company had no loans held for sale at December 31, 2021 and September 30, 2021.

Purchased Credit Impaired Loans

The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount for those loans is as follows:

	December 31, 2021
(in thousands)
Commercial real estate	$	3,590
Commercial and industrial		1,899
Total recorded investment	$	5,489

The Company has not recorded an allowance for loan losses related to these loans at December 31, 2021.

The following table presents a summary of changes in accretable difference on purchased loans accounted for under ASC 310-30:

(in thousands)	Three Months Ended December 31, 2021
Balance at beginning of period	$	346
Accretable differences acquired		-
Accretion		(1,035	)
Adjustments to accretable difference due to changes in expected cash flows		363
Other changes, net		416
Ending balance	$	90

For the three months ended December 31, 2021 and 2020, the Company sold loans totaling approximately $35.2 million and $8.4 million, respectively, recognizing net gains of $1.5 million and $181 thousand, respectively.

The following summarizes the activity in the allowance for loan losses by portfolio segment for the periods indicated:

	Three Months Ended December 31, 2021
	Residential Real Estate Loans			Multi- Family Loans			Commercial Real Estate Loans		Commercial and Industrial Loans		Construction and Land Development Loans		Consumer Loans		Total
(in thousands)
Allowance for loan losses:
Beginning Balance	$	4,155		$	2,433		$	1,884	$	79	$	-	$	1	$	8,552
Charge-offs		-			(66	)		-		-		-		-		(66	)
Recoveries		-			-			-		-		-		-		-
Provision (credit) for
loan losses		(40	)		201			634		105		-		-		900
Ending Balance	$	4,115		$	2,568		$	2,518	$	184	$	-	$	1	$	9,386

	Three Months Ended December 31, 2020
	Residential Real Estate Loans			Multi- Family Loans		Commercial Real Estate Loans		Commercial and Industrial Loans			Construction and Land Development Loans		Consumer Loans		Total
(in thousands)
Allowance for loan losses:
Beginning Balance	$	5,103		$	1,506	$	1,221	$	38		$	-	$	1	$	7,869
Charge-offs		-			-		-		-			-		-		-
Recoveries		-			-		-		10			-		-		10
Provision (credit) for
loan losses		(9	)		113		-		(4	)		-		-		100
Ending Balance	$	5,094		$	1,619	$	1,221	$	44		$	-	$	1	$	7,979

The following table represents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment evaluation method. The recorded investment in loans excludes accrued interest receivable due to immateriality.

	December 31, 2021
(in thousands)	Residential Real Estate		Multi- Family		Commercial Real Estate		Commercial and Industrial		Construction and Land Development		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		4,115		2,568		2,518		184		-		1		9,386
Purchased-credit impaired		-		-		-		-		-		-		-
Total allowance for loan losses	$	4,115	$	2,568	$	2,518	$	184	$	-	$	1	$	9,386

Loans:
Individually evaluated for impairment	$	6,315	$	432	$	523	$	480	$	-	$	-	$	7,750
Collectively evaluated for impairment		430,254		358,399		356,685		107,339		11,487		31		1,264,195
Purchased-credit impaired		-		-		3,590		1,899		-		-		5,489
Total loans held for investment	$	436,569	$	358,831	$	360,798	$	109,718	$	11,487	$	31	$	1,277,434

	September 30, 2021
(in thousands)	Residential Real Estate		Multi- Family		Commercial Real Estate		Commercial and Industrial		Construction and Land Development		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		4,155		2,433		1,884		79		-		1		8,552
Purchased-credit impaired		-		-		-		-		-		-		-
Total allowance for loan losses	$	4,155	$	2,433	$	1,884	$	79	$	-	$	1	$	8,552

Loans:
Individually evaluated for impairment	$	7,198	$	458	$	517	$	500	$	-	$	-	$	8,673
Collectively evaluated for impairment		436,942		266,256		339,966		169,660		15,374		13		1,228,211
Purchased-credit impaired		-		-		8,324		1,917		-		-		10,241
Total loans held for investment	$	444,140	$	266,714	$	348,807	$	172,077	$	15,374	$	13	$	1,247,125

No allowance was recorded on purchased credit impaired loans.

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

	December 31, 2021						September 30, 2021
(in thousands)	Unpaid Principal Balance		Recorded Investment		Allowance Allocated		Unpaid Principal Balance		Recorded Investment		Allowance Allocated
With no related allowance recorded:
Residential real estate	$	6,315	$	6,315	$	-	$	7,382	$	7,198	$	-
Multi-family		432		432		-		382		458		-
Commercial real estate		523		523		-		522		517		-
Commercial and industrial		480		480		-		535		500		-
Total	$	7,750	$	7,750	$	-	$	8,821	$	8,673	$	-

	Three Months Ended December 31,
	2021				2020
(in thousands)	Average Recorded Investment		Interest Income Recognized ⁽¹⁾		Average Recorded Investment		Interest Income Recognized ⁽¹⁾
Residential real estate	$	6,347	$	20	$	5,655	$	22
Multi-family		440		-		46		1
Commercial real estate		520		-		28		1
Commercial and industrial		481		-		-		-
Total	$	7,788	$	20	$	5,729	$	24

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

At December 31, 2021 and September 30, 2021, past due and non-accrual loans disaggregated by portfolio segment were as follows:

(in thousands)	Past Due and Non-Accrual
December 31, 2021	30 - 59 days past due and accruing		60 - 89 days past due and accruing		Greater than 89 days past due and accruing		Non-accrual				Total past due and non- accrual		Purchased credit impaired		Current		Total
Residential real estate	$	52	$	317	$	-	$	4,680	(1	)	$	5,049	$	-	$	431,520	$	436,569
Multi-family		-		-		-		432	(2	)		432		-		358,399		358,831
Commercial real estate		5,068		-		-		523	(3	)		5,591		3,590		351,617		360,798
Commercial and industrial		143		484		-		480	(4	)		1,107		1,899		106,712		109,718
Construction and land development		-		-		-		-				-		-		11,487		11,487
Consumer		-		-		-		-				-		-		31		31
Total	$	5,263	$	801	$	-	$	6,115			$	12,179	$	5,489	$	1,259,766	$	1,277,434

(1) Of the residential real estate non-accrual loans, $296 were 31 days past due, $996 were 61 days past due and $3,388 were greater than 89 days past due.

(2) Multi-family non-accrual loans at December 31, 2021 were greater than 89 days past due.

(3) Commercial real estate non-accrual loans at December 31, 2021 were greater than 89 days past due.

(4) Commercial and industrial non-accrual loans at December 31, 2021 were greater than 89 days past due.

(in thousands)	Past Due and Non-Accrual
September 30, 2021	30 - 59 days past due and accruing		60 - 89 days past due and accruing		Greater than 89 days past due and accruing		Non-accrual				Total past due and non- accrual		Purchased credit impaired		Current		Total
Residential real estate	$	1,032	$	1,601	$	-	$	5,554	(1	)	$	8,187	$	-	$	435,953	$	444,140
Multi-family		-		-		-		458	(2	)		458		-		266,256		266,714
Commercial real estate		1,939		-		-		1,016	(3	)		2,955		8,324		337,528		348,807
Commercial and industrial		3,641		-		-		-				3,641		1,917		166,519		172,077
Construction and land development		-		-		-		-				-		-		15,374		15,374
Consumer		-		-		-		-				-		-		13		13
Total	$	6,612	$	1,601	$	-	$	7,028			$	15,241	$	10,241	$	1,221,643	$	1,247,125

(1) Of the residential real estate non-accrual loans, $1,026 were 61 days past due and $4,528 were greater than 89 days past due.

(2) Multi-family non-accrual loans at September 30, 2021 were greater than 89 days past due.

(3) Commercial real estate non-accrual loans at September 30, 2021 were greater than 89 days 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 December 31, 2021 and September 30, 2021, 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 December 31, 2021 or September 30, 2021.

For the three months ended December 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 months ended December 31, 2021 and 2020, the Company had no new TDRs.

In June 2020, New York’s then-Governor Andrew Cuomo signed SB 8243C and SB 8428 into law, which created Section 9-x of the New York Banking Law. 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 519 loans totaling $367.1 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 agencies. As of December 31, 2021, 12 loans totaling $11.0 million were still in forbearance, of which 5 loans totaling $2.9 million were loans qualified under Section 9-x.

The Company continuously monitors the credit quality of its loan receivables. Credit quality is monitored by reviewing certain credit quality indicators. Management has determined that internally assigned credit risk ratings by loan segment are the key credit quality indicators that best assist management in monitoring the credit quality of the Company’s loan receivables.

The Company has adopted a credit risk rating system as part of the risk assessment of its loan portfolio. The Company’s lending officers are required to assign a credit risk rating to each loan in their portfolio at origination. When the lender learns of important financial developments, the risk rating is reviewed and adjusted if necessary. In addition, the Company engages a third-party independent loan reviewer that performs quarterly reviews of a sample of loans, validating the credit risk ratings assigned to such loans. The credit risk ratings play an important role in the establishment of the loan loss provision and to confirm the adequacy of the allowance for loan losses.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. The Company uses the following definitions for risk ratings:

Special Mention: The loan has potential weaknesses that deserves management’s close 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: The loan is inadequately protected by current sound worth and paying capacity of the obligor or collateral pledged, if any. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: The loan has all the weaknesses inherent in one 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 December 31, 2021 and September 30, 2021, the Company’s loan portfolio by credit risk rating disaggregated by portfolio segment were as follows:

	December 31, 2021
(in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Real Estate:
Residential	$	426,327	$	4,816	$	5,205	$	-	$	436,348
Multi-family		354,292		3,732		432		-		358,456
Commercial		338,852		15,109		6,649		-		360,610
Commercial and industrial		105,071		116		4,375		-		109,562
Construction and land development		9,446		1,998		-		-		11,444
Consumer		29		-		-		-		29
Total	$	1,234,017	$	25,771	$	16,661	$	-	$	1,276,449

	September 30, 2021
(in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Real Estate:
Residential	$	433,299	$	5,115	$	5,594	$	3	$	444,011
Multi-family		262,984		2,852		458		-		266,294
Commercial		316,727		16,274		15,640		-		348,641
Commercial and industrial		168,104		540		3,630		-		172,274
Construction and land development		13,607		1,767		-		-		15,374
Consumer		11		-		-		-		11
Total	$	1,194,732	$	26,548	$	25,322	$	3	$	1,246,605

EQUITY COMPENSATION PLANS

3 Months Ended

Dec. 31, 2021

EQUITY COMPENSATION PLANS [Abstract]

EQUITY COMPENSATION PLANS

6. EQUITY COMPENSATION PLANS

The Company’s 2021 and 2018 Equity Compensation Plans (“the 2021 Plan” and “the 2018 Plan,” respectively), provide for the grant of stock-based compensation awards to members of management, including employees and management officials, and members of the Board. Under the 2021 Plan, a total of 427,500 shares of the Company’s common stock or equivalents were approved for issuance, of which 427,500 shares remain available for issuance at December 31, 2021. Of the total 346,000 shares of common stock approved for issuance under the 2018 Plan, 198,735 shares remain available for issuance at December 31, 2021. Hanover assumed the 2013 Savoy Bank Stock Option Plan solely in connection with options to purchase Savoy common stock held by the former Chief Executive Officer of Savoy and which, under the terms of the Agreement and Plan of Merger between the Company and Savoy, were converted into options to purchase 71,900 shares of Hanover common stock.

Stock Options

Stock options are granted with an exercise price equal to the fair market value of the Company’s common stock at the date of grant, and generally 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 common stock of the Company's peers. 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 three months ended December 31, 2021 and 2020.

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

	Number of Options		Weighted- Average Exercise Price		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Term
Outstanding, October 1, 2021		227,406	$	9.50	$	2,043	3.51 years
Granted		-		-
Exercised		-		-
Forfeited		-		-
Outstanding, December 31, 2021 ⁽¹⁾		227,406	$	9.50	$	2,043	3.20 years

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

There was no compensation expense attributable to stock options for the three months ended December 31, 2021 and 2020.

Restricted Stock

No restricted stock awards were granted during the three months ended December 31, 2021. During the three months ended December 31, 2020, restricted stock awards of 7,500 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 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, 2021		75,833		$	19.87
Granted		-			-
Vested		(2,666	)		21.49
Forfeited		(2,887	)		19.07
Unvested, December 31, 2021		70,280		$	19.84

Compensation expense attributable to restricted stock was $217 thousand and $229 thousand for the three months ended December 31, 2021 and 2020, respectively. As of December 31, 2021, there was $0.8 million of total unrealized compensation cost related to unvested restricted stock, expected to be recognized over a weighted-average term of 1.62 years. The total fair value of shares vested during the three months ended December 31, 2021 and 2020 was $49 thousand and $7 thousand, respectively.

REGULATORY MATTERS

3 Months Ended

Dec. 31, 2021

REGULATORY MATTERS [Abstract]

REGULATORY MATTERS

7. 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. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of December 31, 2021, the Bank meets all capital adequacy requirements to which it is subject.

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. At December 31 2021 and September 30, 2021, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

Under a policy of the Federal Reserve applicable to bank holding companies with less than $3.0 billion in consolidated assets, the Company is not subject to consolidated regulatory capital requirements.

The following table sets forth the Bank’s capital amounts (in thousands) and ratios under current regulations:

	Actual Capital					Minimum Capital Adequacy Requirement					Minimum Capital Adequacy Requirement with Capital Conservation Buffer					Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2021
Total capital to risk-weighted assets	$	141,803		15.52	%	$	73,114		8.00	%	$	95,963		10.50	%	$	91,393		10.00	%
Tier 1 capital to risk-weighted assets		132,006		14.44	%		54,836		6.00	%		77,684		8.50	%		73,114		8.00	%
Common equity tier 1 capital to risk-weighted assets		132,006		14.44	%		41,127		4.50	%		63,975		7.00	%		59,405		6.50	%
Tier 1 capital to adjusted average assets (leverage)		132,006		9.92	%		53,241		4.00	%		N/A		N/A			66,551		5.00	%

September 30, 2021
Total capital to risk-weighted assets	$	132,554		15.59	%	$	68,040		8.00	%	$	89,303		10.50	%	$	85,050		10.00	%
Tier 1 capital to risk-weighted assets		123,666		14.54	%		51,030		6.00	%		72,293		8.50	%		68,040		8.00	%
Common equity tier 1 capital to risk-weighted assets		123,666		14.54	%		38,273		4.50	%		59,535		7.00	%		55,283		6.50	%
Tier 1 capital to adjusted average assets (leverage)		123,666		9.45	%		52,338		4.00	%		N/A		N/A			65,423		5.00	%

Dividend restrictions - The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of December 31, 2021, the Bank had $35.2 million of retained net income available for dividends to the Company.

- 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

3 Months Ended

Dec. 31, 2021

FAIR VALUE [Abstract]

FAIR VALUE

8. FAIR VALUE

FASB ASC No. 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined using quoted market prices. However, in many instances, quoted market prices are not available. In such instances, fair values are determined using appropriate valuation techniques. Various assumptions and observable inputs must be relied upon in applying these techniques. Accordingly, categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. As such, the fair value estimates may not be realized in an immediate transfer of the respective asset or liability.

FASB ASC 820-10 also establishes a fair value hierarchy and describes three levels of inputs that may be used to measure fair values: The three levels within the fair value hierarchy are as follows:

•

Level 1: Valuation is based upon unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

•

Level 2: Fair value is calculated using significant inputs other than quoted market prices that are directly or indirectly observable for the asset or liability. The valuation may rely on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, rate volatility, prepayment speeds, credit ratings,) or inputs that are derived principally or corroborated by market data, by correlation, or other means.

•

Level 3: Inputs for determining the fair value of the respective assets or liabilities are not observable. Level 3 valuations are reliant upon pricing models and techniques that require significant management judgment or estimation.

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 ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Assets Measured at Fair Value on a Recurring Basis

The following presents fair value measurements on a recurring basis at December 31, 2021 and September 30, 2021:

	December 31, 2021
			Fair Value Measurements Using
(In thousands)	Carrying Amount		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Available-for-sale securities:
U.S. GSE residential mortgage-backed securities	$	515	$	-	$	515	$	-
Corporate bonds		7,021		-		7,021		-
Mortgage servicing rights		3,741		-		-		3,741
Total	$	11,277	$	-	$	7,536	$	3,741

	September 30, 2021
			Fair Value Measurements Using
(In thousands)	Carrying Amount		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Available-for-sale securities:
U.S. GSE residential mortgage-backed securities	$	833	$	-	$	833	$	-
Corporate bonds		6,914		-		6,914		-
Mortgage servicing rights		3,690		-		-		3,690
Total	$	11,437	$	-	$	7,747	$	3,690

The fair value for the securities available-for-sale were obtained from an independent broker based upon 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 securities but rather by relying on the securities’ relationship to other benchmark quoted securities. The Company has determined these are classified as Level 2 inputs within the fair value hierarchy.

The fair value of mortgage servicing rights are based on a valuation model that calculates the present value of estimated future servicing income. The valuation model utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income. Fair value of loan servicing rights related to residential mortgage loans at December 31, 2021 was determined based on discounted expected future cash flows using discount rates ranging from 12.0% to 14.5%, prepayment speed of 26.25% and a weighted average life ranging from 1.80 to 3.02 years. Fair value at September 30, 2021 for mortgage servicing rights was determined based on discounted expected future cash flows using discount rates ranging from 12.0% to 14.5%, prepayment speeds ranging from 24.18% to 24.33% and a weighted average life ranging from 1.96 to 3.30 years.

The fair value of loan servicing rights for SBA loans at December 31, 2021 was determined based on discounted expected future cash flows using discount rates ranging from 4.79% to 23.84%, prepayment speeds ranging from 8.94% to 23.63% and a weighted average life ranging from 0.28 to 5.80 years.

The Company has determined these are mostly unobservable inputs and considers then Level 3 inputs within the fair value hierarchy.

The following table presents the changes in mortgage servicing rights for the periods presented:

	Three Months Ended December 31,
(in thousands)	2021			2020
Balance, October 1	$	3,690		$	155
Additions		168			-
Adjustment to fair value		(117	)		(11	)
Balance, December 31	$	3,741		$	144

Assets Measured at Fair Value on a Non-recurring Basis

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

Financial Instruments Not Measured at Fair Value

The following presents the carrying amounts and estimated fair values of the Company’s financial instruments not carried at fair value at December 31, 2021 and September 30, 2021:

			December 31, 2021
			Fair Value Measurements Using:
(In thousands)	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	$	114,951	$	114,951	$	-	$	-	$	114,951
Securities held-to-maturity		4,834		-		5,008		-		5,008
Securities available-for-sale		7,536		-		7,536		-		7,536
Loans, net		1,268,048		-		-		1,282,865		1,282,865
Federal Home Loan Bank stock		4,057		N/A		N/A		N/A		N/A
Accrued interest receivable		8,858		-		116		8,742		8,858

Financial Liabilities:
Time deposits		326,883		-		326,517		-		326,517
Demand and other deposits		849,868		849,868		-		-		849,868
Borrowings		113,274		-		112,852		-		112,852
Subordinated debentures		24,504		-		27,083		-		27,083
Accrued interest payable		879		1		878		-		879

			September 30, 2021
			Fair Value Measurements Using:
(In thousands)	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	$	166,544	$	166,544	$	-	$	-	$	166,544
Securities held-to-maturity		8,611		-		8,865		-		8,865
Securities available-for-sale		7,747		-		7,747		-		7,747
Loans, net		1,238,573		-		-		1,278,056		1,278,056
Federal Home Loan Bank stock		3,714		N/A		N/A		N/A		N/A
Accrued interest receivable		9,363		-		211		9,152		9,363

Financial Liabilities:
Time deposits		377,836		-		378,333		-		378,333
Demand and other deposits		786,826		786,826		-		-		786,826
Borrowings		159,642		-		159,608		-		159,608
Subordinated debentures		24,513		-		27,092		-		27,092
Accrued interest payable		1,290		1		713		576		1,290

- 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	3 Months Ended
LOSS CONTINGENCIES	Dec. 31, 2021
LOSS CONTINGENCIES [Abstract]
LOSS CONTINGENCIES	9. 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

3 Months Ended

Dec. 31, 2021

BORROWINGS [Abstract]

BORROWINGS

10. BORROWINGS

Federal Home Loan Bank (“FHLB”) Advances

At December 31, 2021 and September 30, 2021, FHLB advances outstanding were $47.9 million and $42.0 million, respectively. The advances were all at fixed rates ranging from 0.34% to 2.96% and from 0.37% to 2.96%, respectively, and with maturities ranging from January 2022 to August 2025 and from October 2021 to August 2025, respectively, at December 31, 2021 and September 30, 2021.

Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $488.5 million and $432.7 million of residential and commercial mortgage loans under a blanket lien arrangement at December 31, 2021 and September 30, 2021, 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 $26.7 million at December 31, 2021.

The following table sets forth the contractual maturities and weighted average interest rates of the Company’s fixed rate FHLB advances (in thousands):

	Balance at December 31, 2021
Contractual Maturity	Amount		Weighted Average Rate
2022	$	10,000		0.34	%
2023		11,995		2.23	%
2024		18,860		0.98	%
2025		7,080		0.58	%
Total	$	47,935		1.10	%

	Balance at September 30, 2021
Contractual Maturity	Amount		Weighted Average Rate
2022	$	4,000		2.02	%
2023		12,040		2.23	%
2024		18,860		0.98	%
2025		7,080		0.58	%
Total	$	41,980		1.37	%

Federal Reserve Borrowings

At December 31, 2021 and September 30, 2021, the Company’s borrowings from the Federal Reserve’s Paycheck Protection Liquidity Facility (“PPPLF”) were $65.3 million and $117.7 million, respectively. The borrowings have a rate of 0.35% and the maturity date will equal the maturity date of the underlying PPP loan pledged to secure the extension of credit. The maturity date of a PPP loan is either two or five years from origination date. The Company utilized the PPPLF to fund PPP loan production. The borrowings are fully secured by pledged PPP loans as of December 31, 2021 and September 30, 2021.

Correspondent Bank Borrowings

At December 31, 2021, approximately $55 million in unsecured lines of credit extended by correspondent banks were available to be utilized for short-term funding purposes. No borrowings were outstanding under lines of credit with correspondent banks at December 31, 2021 and September 30, 2021.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

SUBORDINATED DEBENTURES	3 Months Ended
SUBORDINATED DEBENTURES	Dec. 31, 2021
Subordinated Debentures [Abstract]
Subordinated Debentures	11. 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. These subordinated notes are included as a component of the Bank’s Tier 1 capital for regulatory reporting. At December 31, 2021 and September 30, 2021, the unamortized issuance costs of the Notes were $0.5 million and $0.5 million, respectively. For the three months ended December 31, 2021 and 2020, $21 thousand and $13 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.

ACCUMULATED OTHER COMPREHENSIVE INCOME

3 Months Ended

Dec. 31, 2021

ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME

12. ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents changes in accumulated other comprehensive income by component, net of tax, for the three months ended December 31, 2021 and 2020:

(in thousands)	Unrealized Gains and Losses on Available- for-Sale Debt Securities		Total
Balance at October 1, 2021	$	256	$	256
Other comprehensive income		54		54
Balance at December 31, 2021	$	310	$	310

Balance at October 1, 2020	$	156	$	156
Other comprehensive income		167		167
Balance at December 31, 2020	$	323	$	323

There were no significant amounts reclassified out of accumulated other comprehensive income for the three months ended December 31, 2021 and 2020.

BASIS OF PRESENTATION, RISKS AND UNCERTAINTIES, ACCOUNTING POLICIES AND RECENT ACCOUNTING DEVELOPMENTS (Policies)	3 Months Ended
	Dec. 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 December 31, 2021, its consolidated statements of income for the three months ended December 31, 2021 and 2020, its consolidated statements of comprehensive income for the three months ended December 31, 2021 and 2020, its consolidated statements of changes in stockholders’ equity for the three months ended December 31, 2021 and 2020 and its consolidated statements of cash flows for the three months ended December 31, 2021 and 2020. Certain prior period amounts have been reclassified to conform to the current period presentation. 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 months ended December 31, 2021 are not necessarily indicative of the results of operations to be expected for the remainder of the year. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2021. 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 local, national and global economic activity. Various actions taken to help mitigate the spread of COVID-19 included restrictions on travel, quarantines and government-mandated closures of various businesses. The outbreak caused significant disruptions to the economy and disrupted banking and other financial activity in the areas in which the Company operates. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in March 2020 to, among other things, provide emergency assistance to individuals, families and businesses affected by the COVID-19 pandemic. The ongoing effects of the COVID-19 pandemic may materially and adversely affect the Company’s financial condition and results of operations in future periods, and it is unknown what the complete financial impact will be to the Company. The extent of such impact will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the coronavirus, the new “waves” of COVID-19 infections, the spread of new variants of the virus, and the distribution of vaccines and vaccination rates, among others. It is possible that estimates made in the financial statements could be materially and adversely impacted due to these conditions.
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, construction and land development, 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. At December 31, 2021 and September 30, 2021, the Company had loans totaling $5.5 million and $10.2 million, respectively, which at the time of acquisition, showed evidence of credit deterioration since origination.
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 the 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 In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The amendments introduce an impairment model that is based on current expected credit losses (“CECL”), rather than incurred losses, to estimate credit losses on certain types of financial instruments (i.e. loans and held to maturity securities), including certain off-balance sheet financial instruments (i.e. commitments to extend credit and standby letters of credit that are not unconditionally cancellable). The CECL standard should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Financial instruments with similar risk characteristics may be grouped together when estimating credit losses. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial estimate of expected credit loss would be recognized through an allowance for credit losses with an offset (i.e. increase) to the purchase price at acquisition. Only subsequent changes in the allowance for credit losses are recorded as provision for loan losses for these assets. The ASU also amends the current available for sale security impairment model for debt securities whereby credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. The amendments will be applied through a modified retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. As the Company is a smaller-reporting company under SEC regulations, the Company will adopt CECL on October 1, 2023 and the future adoption of this ASU may have a material effect on the Company’s consolidated financial statements. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases. The amendments in this update primarily replace the existing accounting requirements for operating leases for lessees. Lessee accounting requirements for finance leases and lessor accounting requirements for operating leases and sales type and direct financing leases (sales-type and direct financing leases were both previously referred to as capital leases) are largely unchanged. The amendments require the lessee of an operating lease to record a balance sheet gross-up upon lease commencement by recognizing a right-of-use asset and lease liability equal to the present value of the lease payments. The right-of-use asset and lease liability should be derecognized in a manner that effectively yields a straight-line lease expense over the lease term. In addition to the changes to the lessee operating lease accounting requirements, the amendments also change the types of costs that can be capitalized related to a lease agreement for both lessees and lessors. The amendments also require additional disclosures for all lease types for both lessees and lessors. The FASB has subsequently issued additional ASUs intended to clarify guidance, provide implementation support, and provide an additional transition election. The amendments are effective on October 1, 2022, with early adoption permitted. The amendments must be applied on a modified retrospective basis, and we anticipate selecting the transition option that will allow us to record a cumulative adjustment as of the adoption date. We are assessing our current population of lease contracts and upon adoption, our balance sheet will include a right-of-use asset and lease liability for our operating leases where we are the lessee, which primarily include our facilities leases. We do not anticipate the adoption of these amendments will have a material impact to our consolidated financial statements. We plan to adopt these amendments on October 1, 2022 and expect to use the modified retrospective approach as currently required.

BUSINESS COMBINATIONS (Tables)

3 Months Ended

Dec. 31, 2021

BUSINESS COMBINATIONS [Abstract]

Fair Value of the Assets Received and Liabilities Assumed

A preliminary summary of the fair value of assets received and liabilities assumed are as follows:

(in thousands)	As Recorded by Savoy		Fair Value Adjustments				As Recorded by Hanover
Assets
Cash and due from banks	$	59,155	$	-			$	59,155
Investment securities available-for-sale		239		-				239
Loans held for sale		3,883		-				3,883
Loans held for investment		569,251		8,612		(a)		577,863
Premises and equipment, net		234		(22	)	(b)		212
Core deposit intangible		-		490		(c)		490
Accrued interest receivable		5,171		(650	)	(d)		4,521
Other assets		10,432		(2,925	)	(e)		7,507
Total assets acquired	$	648,365	$	5,505				653,870

Liabilities
Deposits	$	340,215	$	2,527		(f)		342,742
Borrowings		258,247		301		(g)		258,548
Accrued interest payable		1,050		-				1,050
Other liabilities and accrued expenses		3,817		(342	)	(h)		3,475
Total liabilities assumed	$	603,329	$	2,486				605,815

Net assets acquired								48,055
Total consideration								65,512
Goodwill							$	17,457

(a)	Represents the fair value adjustments on net book value of loans, which includes an interest rate mark and credit mark adjustment, the write-off of deferred fees/costs and premiums and the elimination of Savoy’s allowance for loan losses.

(b)	Represents the fair value adjustments to reflect the fair value of premises and equipment.

(c)	Represents the fair value of core deposit intangible recorded, which will be amortized on an accelerated basis over the estimated average life of the deposit base.

(d)	Represents an adjustment to accrued interest receivable acquired.

(e)	Represents an adjustment to other assets acquired. The largest adjustment was the net deferred tax assets resulting from the fair value adjustment related to the acquired assets, liabilities assumed, and identifiable intangible assets recorded.

(f)	Represents the fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits.

(g)	Represents the fair value adjustments on an FHLB borrowing, which will be treated as a reduction to interest expense over the life of the borrowing.

(h)	Represents an adjustment to other liabilities assumed.

Consideration Paid

A summary of total consideration paid is as follows:

(in thousands, except share data)
Common stock issued (1,357,567 shares issued)	$	32,521
Cash payments to common shareholders		32,991
Total consideration paid	$	65,512

Loans Acquired in Savoy Acquisition

The following is a summary of the loans accounted for in accordance with ASC 310-30 that were acquired in the Savoy acquisition as of the merger date:

(in thousands)
Contractually required principal and interest at acquisition	$	14,416
Contractual cash flows not expected to be collected (non-accretable discount)		(3,467	)
Expected cash flows at acquisition		10,949
Interest component of expected cash flows (accretable discount)		(540	)
Fair value of acquired purchased credit impaired loans	$	10,409

EARNINGS PER COMMON SHARE (Tables)

3 Months Ended

Dec. 31, 2021

EARNINGS PER COMMON SHARE [Abstract]

Calculations of Basic and Diluted Earnings Per Share

	Three Months Ended December 31,
	2021		2020
(in thousands, except share and per share data)
Basic earnings per common share
Net income	$	6,537	$	1,519
Weighted average common shares outstanding		5,562,939		4,180,936
Basic earnings per common share	$	1.18	$	0.36

Diluted earnings per common share
Net income	$	6,537	$	1,519
Weighted average common shares outstanding for basic earnings per common share		5,562,939		4,180,936
Add: dilutive effects of assumed exercises of stock options		95,489		64,860
Average shares and dilutive potential common shares		5,658,428		4,245,796
Diluted earnings per common share	$	1.16	$	0.36

SECURITIES (Tables)

3 Months Ended

Dec. 31, 2021

SECURITIES [Abstract]

Investment Securities Available for Sale and Held to Maturity

	December 31, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale:
U.S. GSE residential mortgage-backed securities	$	439	$	78	$	(2	)	$	515
Corporate bonds		6,700		321		-			7,021
Total available for sale securities	$	7,139	$	399	$	(2	)	$	7,536

Held to maturity:
U.S. GSE residential mortgage-backed securities	$	2,154	$	48	$	-		$	2,202
U.S. GSE commercial mortgage-backed securities		2,680		126		-			2,806
Total held to maturity securities		4,834		174		-			5,008
Total investment securities	$	11,973	$	573	$	(2	)	$	12,544

	September 30, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale:
U.S. GSE residential mortgage-backed securities	$	722	$	112	$	(1	)	$	833
Corporate bonds		6,700		214		-			6,914
Total available for sale securities	$	7,422	$	326	$	(1	)	$	7,747

Held to maturity:
U.S. GSE residential mortgage-backed securities	$	2,417	$	74	$	-		$	2,491
U.S. GSE commercial mortgage-backed securities		2,694		175		-			2,869
Corporate bonds		3,500		9		(4	)		3,505
Total held to maturity securities		8,611		258		(4	)		8,865
Total investment securities	$	16,033	$	584	$	(5	)	$	16,612

Securities Portfolio by Contractual Maturity

	December 31, 2021
(in thousands)	Amortized Cost		Fair Value
Securities available for sale:
Five to ten years	$	6,700	$	7,021
U.S. GSE residential mortgage-backed securities		439		515
Total securities available for sale		7,139		7,536
Securities held to maturity:
One to five years		-		-
Five to ten years		-		-
U.S. GSE residential mortgage-backed securities		2,154		2,202
U.S. GSE commercial mortgage-backed securities		2,680		2,806
Total securities held to maturity		4,834		5,008
Total investment securities	$	11,973	$	12,544

LOANS (Tables)

3 Months Ended

Dec. 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.

	December 31, 2021			September 30, 2021
(in thousands)
Residential real estate	$	436,348		$	444,011
Multi-family		358,456			266,294
Commercial real estate		360,610			348,641
Commercial and industrial		109,562			172,274
Construction and land development		11,444			15,374
Consumer		29			11
Gross loans		1,276,449			1,246,605
Net deferred costs (fees)		985			520
Total loans		1,277,434			1,247,125
Allowance for loan losses		(9,386	)		(8,552	)
Total loans, net	$	1,268,048		$	1,238,573

Carrying Amount for Purchased Credit Impaired Loans

	December 31, 2021
(in thousands)
Commercial real estate	$	3,590
Commercial and industrial		1,899
Total recorded investment	$	5,489

Changes in Accretable Difference on Purchased Loans

The following table presents a summary of changes in accretable difference on purchased loans accounted for under ASC 310-30:

(in thousands)	Three Months Ended December 31, 2021
Balance at beginning of period	$	346
Accretable differences acquired		-
Accretion		(1,035	)
Adjustments to accretable difference due to changes in expected cash flows		363
Other changes, net		416
Ending balance	$	90

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:

	Three Months Ended December 31, 2021
	Residential Real Estate Loans			Multi- Family Loans			Commercial Real Estate Loans		Commercial and Industrial Loans		Construction and Land Development Loans		Consumer Loans		Total
(in thousands)
Allowance for loan losses:
Beginning Balance	$	4,155		$	2,433		$	1,884	$	79	$	-	$	1	$	8,552
Charge-offs		-			(66	)		-		-		-		-		(66	)
Recoveries		-			-			-		-		-		-		-
Provision (credit) for
loan losses		(40	)		201			634		105		-		-		900
Ending Balance	$	4,115		$	2,568		$	2,518	$	184	$	-	$	1	$	9,386

	Three Months Ended December 31, 2020
	Residential Real Estate Loans			Multi- Family Loans		Commercial Real Estate Loans		Commercial and Industrial Loans			Construction and Land Development Loans		Consumer Loans		Total
(in thousands)
Allowance for loan losses:
Beginning Balance	$	5,103		$	1,506	$	1,221	$	38		$	-	$	1	$	7,869
Charge-offs		-			-		-		-			-		-		-
Recoveries		-			-		-		10			-		-		10
Provision (credit) for
loan losses		(9	)		113		-		(4	)		-		-		100
Ending Balance	$	5,094		$	1,619	$	1,221	$	44		$	-	$	1	$	7,979

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

	December 31, 2021
(in thousands)	Residential Real Estate		Multi- Family		Commercial Real Estate		Commercial and Industrial		Construction and Land Development		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		4,115		2,568		2,518		184		-		1		9,386
Purchased-credit impaired		-		-		-		-		-		-		-
Total allowance for loan losses	$	4,115	$	2,568	$	2,518	$	184	$	-	$	1	$	9,386

Loans:
Individually evaluated for impairment	$	6,315	$	432	$	523	$	480	$	-	$	-	$	7,750
Collectively evaluated for impairment		430,254		358,399		356,685		107,339		11,487		31		1,264,195
Purchased-credit impaired		-		-		3,590		1,899		-		-		5,489
Total loans held for investment	$	436,569	$	358,831	$	360,798	$	109,718	$	11,487	$	31	$	1,277,434

	September 30, 2021
(in thousands)	Residential Real Estate		Multi- Family		Commercial Real Estate		Commercial and Industrial		Construction and Land Development		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Collectively evaluated for impairment		4,155		2,433		1,884		79		-		1		8,552
Purchased-credit impaired		-		-		-		-		-		-		-
Total allowance for loan losses	$	4,155	$	2,433	$	1,884	$	79	$	-	$	1	$	8,552

Loans:
Individually evaluated for impairment	$	7,198	$	458	$	517	$	500	$	-	$	-	$	8,673
Collectively evaluated for impairment		436,942		266,256		339,966		169,660		15,374		13		1,228,211
Purchased-credit impaired		-		-		8,324		1,917		-		-		10,241
Total loans held for investment	$	444,140	$	266,714	$	348,807	$	172,077	$	15,374	$	13	$	1,247,125

Impaired Loans by Portfolio Segment

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

	December 31, 2021						September 30, 2021
(in thousands)	Unpaid Principal Balance		Recorded Investment		Allowance Allocated		Unpaid Principal Balance		Recorded Investment		Allowance Allocated
With no related allowance recorded:
Residential real estate	$	6,315	$	6,315	$	-	$	7,382	$	7,198	$	-
Multi-family		432		432		-		382		458		-
Commercial real estate		523		523		-		522		517		-
Commercial and industrial		480		480		-		535		500		-
Total	$	7,750	$	7,750	$	-	$	8,821	$	8,673	$	-

	Three Months Ended December 31,
	2021				2020
(in thousands)	Average Recorded Investment		Interest Income Recognized ⁽¹⁾		Average Recorded Investment		Interest Income Recognized ⁽¹⁾
Residential real estate	$	6,347	$	20	$	5,655	$	22
Multi-family		440		-		46		1
Commercial real estate		520		-		28		1
Commercial and industrial		481		-		-		-
Total	$	7,788	$	20	$	5,729	$	24

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

Past Due and Non-accrual Loans Disaggregated by Portfolio Segment

At December 31, 2021 and September 30, 2021, past due and non-accrual loans disaggregated by portfolio segment were as follows:

(in thousands)	Past Due and Non-Accrual
December 31, 2021	30 - 59 days past due and accruing		60 - 89 days past due and accruing		Greater than 89 days past due and accruing		Non-accrual				Total past due and non- accrual		Purchased credit impaired		Current		Total
Residential real estate	$	52	$	317	$	-	$	4,680	(1	)	$	5,049	$	-	$	431,520	$	436,569
Multi-family		-		-		-		432	(2	)		432		-		358,399		358,831
Commercial real estate		5,068		-		-		523	(3	)		5,591		3,590		351,617		360,798
Commercial and industrial		143		484		-		480	(4	)		1,107		1,899		106,712		109,718
Construction and land development		-		-		-		-				-		-		11,487		11,487
Consumer		-		-		-		-				-		-		31		31
Total	$	5,263	$	801	$	-	$	6,115			$	12,179	$	5,489	$	1,259,766	$	1,277,434

(1) Of the residential real estate non-accrual loans, $296 were 31 days past due, $996 were 61 days past due and $3,388 were greater than 89 days past due.

(2) Multi-family non-accrual loans at December 31, 2021 were greater than 89 days past due.

(3) Commercial real estate non-accrual loans at December 31, 2021 were greater than 89 days past due.

(4) Commercial and industrial non-accrual loans at December 31, 2021 were greater than 89 days past due.

(in thousands)	Past Due and Non-Accrual
September 30, 2021	30 - 59 days past due and accruing		60 - 89 days past due and accruing		Greater than 89 days past due and accruing		Non-accrual				Total past due and non- accrual		Purchased credit impaired		Current		Total
Residential real estate	$	1,032	$	1,601	$	-	$	5,554	(1	)	$	8,187	$	-	$	435,953	$	444,140
Multi-family		-		-		-		458	(2	)		458		-		266,256		266,714
Commercial real estate		1,939		-		-		1,016	(3	)		2,955		8,324		337,528		348,807
Commercial and industrial		3,641		-		-		-				3,641		1,917		166,519		172,077
Construction and land development		-		-		-		-				-		-		15,374		15,374
Consumer		-		-		-		-				-		-		13		13
Total	$	6,612	$	1,601	$	-	$	7,028			$	15,241	$	10,241	$	1,221,643	$	1,247,125

(1) Of the residential real estate non-accrual loans, $1,026 were 61 days past due and $4,528 were greater than 89 days past due.

(2) Multi-family non-accrual loans at September 30, 2021 were greater than 89 days past due.

(3) Commercial real estate non-accrual loans at September 30, 2021 were greater than 89 days past due.

Loan Portfolio Based on Internal Rating Category

At December 31, 2021 and September 30, 2021, the Company’s loan portfolio by credit risk rating disaggregated by portfolio segment were as follows:

	December 31, 2021
(in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Real Estate:
Residential	$	426,327	$	4,816	$	5,205	$	-	$	436,348
Multi-family		354,292		3,732		432		-		358,456
Commercial		338,852		15,109		6,649		-		360,610
Commercial and industrial		105,071		116		4,375		-		109,562
Construction and land development		9,446		1,998		-		-		11,444
Consumer		29		-		-		-		29
Total	$	1,234,017	$	25,771	$	16,661	$	-	$	1,276,449

	September 30, 2021
(in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Real Estate:
Residential	$	433,299	$	5,115	$	5,594	$	3	$	444,011
Multi-family		262,984		2,852		458		-		266,294
Commercial		316,727		16,274		15,640		-		348,641
Commercial and industrial		168,104		540		3,630		-		172,274
Construction and land development		13,607		1,767		-		-		15,374
Consumer		11		-		-		-		11
Total	$	1,194,732	$	26,548	$	25,322	$	3	$	1,246,605

EQUITY COMPENSATION PLANS (Tables)

3 Months Ended

Dec. 31, 2021

EQUITY COMPENSATION PLANS [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		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Term
Outstanding, October 1, 2021		227,406	$	9.50	$	2,043	3.51 years
Granted		-		-
Exercised		-		-
Forfeited		-		-
Outstanding, December 31, 2021 ⁽¹⁾		227,406	$	9.50	$	2,043	3.20 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, 2021		75,833		$	19.87
Granted		-			-
Vested		(2,666	)		21.49
Forfeited		(2,887	)		19.07
Unvested, December 31, 2021		70,280		$	19.84

REGULATORY MATTERS (Tables)

3 Months Ended

Dec. 31, 2021

REGULATORY MATTERS [Abstract]

Capital Amounts and Ratios

The following table sets forth the Bank’s capital amounts (in thousands) and ratios under current regulations:

	Actual Capital					Minimum Capital Adequacy Requirement					Minimum Capital Adequacy Requirement with Capital Conservation Buffer					Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
December 31, 2021
Total capital to risk-weighted assets	$	141,803		15.52	%	$	73,114		8.00	%	$	95,963		10.50	%	$	91,393		10.00	%
Tier 1 capital to risk-weighted assets		132,006		14.44	%		54,836		6.00	%		77,684		8.50	%		73,114		8.00	%
Common equity tier 1 capital to risk-weighted assets		132,006		14.44	%		41,127		4.50	%		63,975		7.00	%		59,405		6.50	%
Tier 1 capital to adjusted average assets (leverage)		132,006		9.92	%		53,241		4.00	%		N/A		N/A			66,551		5.00	%

September 30, 2021
Total capital to risk-weighted assets	$	132,554		15.59	%	$	68,040		8.00	%	$	89,303		10.50	%	$	85,050		10.00	%
Tier 1 capital to risk-weighted assets		123,666		14.54	%		51,030		6.00	%		72,293		8.50	%		68,040		8.00	%
Common equity tier 1 capital to risk-weighted assets		123,666		14.54	%		38,273		4.50	%		59,535		7.00	%		55,283		6.50	%
Tier 1 capital to adjusted average assets (leverage)		123,666		9.45	%		52,338		4.00	%		N/A		N/A			65,423		5.00	%

FAIR VALUE (Tables)

3 Months Ended

Dec. 31, 2021

FAIR VALUE [Abstract]

Fair Value Measurements on Recurring Basis

The following presents fair value measurements on a recurring basis at December 31, 2021 and September 30, 2021:

	December 31, 2021
			Fair Value Measurements Using
(In thousands)	Carrying Amount		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Available-for-sale securities:
U.S. GSE residential mortgage-backed securities	$	515	$	-	$	515	$	-
Corporate bonds		7,021		-		7,021		-
Mortgage servicing rights		3,741		-		-		3,741
Total	$	11,277	$	-	$	7,536	$	3,741

	September 30, 2021
			Fair Value Measurements Using
(In thousands)	Carrying Amount		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Available-for-sale securities:
U.S. GSE residential mortgage-backed securities	$	833	$	-	$	833	$	-
Corporate bonds		6,914		-		6,914		-
Mortgage servicing rights		3,690		-		-		3,690
Total	$	11,437	$	-	$	7,747	$	3,690

Changes in Mortgage Servicing Rights

The following table presents the changes in mortgage servicing rights for the periods presented:

	Three Months Ended December 31,
(in thousands)	2021			2020
Balance, October 1	$	3,690		$	155
Additions		168			-
Adjustment to fair value		(117	)		(11	)
Balance, December 31	$	3,741		$	144

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 December 31, 2021 and September 30, 2021:

			December 31, 2021
			Fair Value Measurements Using:
(In thousands)	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	$	114,951	$	114,951	$	-	$	-	$	114,951
Securities held-to-maturity		4,834		-		5,008		-		5,008
Securities available-for-sale		7,536		-		7,536		-		7,536
Loans, net		1,268,048		-		-		1,282,865		1,282,865
Federal Home Loan Bank stock		4,057		N/A		N/A		N/A		N/A
Accrued interest receivable		8,858		-		116		8,742		8,858

Financial Liabilities:
Time deposits		326,883		-		326,517		-		326,517
Demand and other deposits		849,868		849,868		-		-		849,868
Borrowings		113,274		-		112,852		-		112,852
Subordinated debentures		24,504		-		27,083		-		27,083
Accrued interest payable		879		1		878		-		879

			September 30, 2021
			Fair Value Measurements Using:
(In thousands)	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	$	166,544	$	166,544	$	-	$	-	$	166,544
Securities held-to-maturity		8,611		-		8,865		-		8,865
Securities available-for-sale		7,747		-		7,747		-		7,747
Loans, net		1,238,573		-		-		1,278,056		1,278,056
Federal Home Loan Bank stock		3,714		N/A		N/A		N/A		N/A
Accrued interest receivable		9,363		-		211		9,152		9,363

Financial Liabilities:
Time deposits		377,836		-		378,333		-		378,333
Demand and other deposits		786,826		786,826		-		-		786,826
Borrowings		159,642		-		159,608		-		159,608
Subordinated debentures		24,513		-		27,092		-		27,092
Accrued interest payable		1,290		1		713		576		1,290

BORROWINGS (Tables)

3 Months Ended

Dec. 31, 2021

BORROWINGS [Abstract]

Outstanding FHLB Advances Contractual Maturities

The following table sets forth the contractual maturities and weighted average interest rates of the Company’s fixed rate FHLB advances (in thousands):

	Balance at December 31, 2021
Contractual Maturity	Amount		Weighted Average Rate
2022	$	10,000		0.34	%
2023		11,995		2.23	%
2024		18,860		0.98	%
2025		7,080		0.58	%
Total	$	47,935		1.10	%

	Balance at September 30, 2021
Contractual Maturity	Amount		Weighted Average Rate
2022	$	4,000		2.02	%
2023		12,040		2.23	%
2024		18,860		0.98	%
2025		7,080		0.58	%
Total	$	41,980		1.37	%

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

3 Months Ended

Dec. 31, 2021

ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract]

Changes in Accumulated Other Comprehensive Income by Component, Net of Tax

The following table presents changes in accumulated other comprehensive income by component, net of tax, for the three months ended December 31, 2021 and 2020:

(in thousands)	Unrealized Gains and Losses on Available- for-Sale Debt Securities		Total
Balance at October 1, 2021	$	256	$	256
Other comprehensive income		54		54
Balance at December 31, 2021	$	310	$	310

Balance at October 1, 2020	$	156	$	156
Other comprehensive income		167		167
Balance at December 31, 2020	$	323	$	323

BASIS OF PRESENTATION, RISKS AND UNCERTAINTIES, ACCOUNTING POLICIES AND RECENT ACCOUNTING DEVELOPMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
Loans and Loan Interest Income Recognition [Abstract]
Loans with evidence of credit deterioration since origination	$ 5,489
Financial Asset Acquired with Credit Deterioration [Member]
Loans and Loan Interest Income Recognition [Abstract]
Loans with evidence of credit deterioration since origination	$ 5,500	$ 10,200

BUSINESS COMBINATIONS, Fair Value of the Assets Received and Liabilities (Details) - USD ($)
$ / shares in Units, $ in Thousands

May 26, 2021

Apr. 30, 2021

Dec. 31, 2021

Sep. 30, 2021

Business Combination [Abstract]

Common stock, par value (in dollars per share)

$ 0.01

Liabilities [Abstract]

Goodwill

$ 19,168

Savoy Bank [Member]

Business Combination [Abstract]

Final aggregate purchase price

$ 65,512

Assets [Abstract]

Cash and due from banks

59,155

Investment securities available-for-sale

239

Loans held for sale

3,883

Loans held for investment

569,251

Premises and equipment, net

234

Core deposit intangible

Accrued interest receivable

5,171

Other assets

10,432

Total assets acquired

648,365

Liabilities [Abstract]

Deposits

340,215

Borrowings

258,247

Accrued interest payable

1,050

Other liabilities and accrued expenses

3,817

Total liabilities assumed

603,329

Total consideration

65,512

Savoy Bank [Member] | Measurement Period Adjustments [Member]

Assets [Abstract]

Cash and due from banks

Investment securities available-for-sale

Loans held for sale

Loans held for investment

^[1]

8,612

Premises and equipment, net

^[2]

(22)

Core deposit intangible

^[3]

490

Accrued interest receivable

^[4]

(650)

Other assets

^[5]

(2,925)

Total assets acquired

5,505

Liabilities [Abstract]

Deposits

^[6]

2,527

Borrowings

^[7]

301

Accrued interest payable

Other liabilities and accrued expenses

^[8]

(342)

Total liabilities assumed

2,486

Savoy Bank [Member] | As adjusted [Member]

Business Combination [Abstract]

Final aggregate purchase price

65,512

Assets [Abstract]

Cash and due from banks

59,155

Investment securities available-for-sale

239

Loans held for sale

3,883

Loans held for investment

577,863

Premises and equipment, net

212

Core deposit intangible

490

Accrued interest receivable

4,521

Other assets

7,507

Total assets acquired

653,870

Liabilities [Abstract]

Deposits

342,742

Borrowings

258,548

Accrued interest payable

1,050

Other liabilities and accrued expenses

3,475

Total liabilities assumed

605,815

Net assets acquired

48,055

Total consideration

65,512

Goodwill

$ 17,457

Savoy Bank [Member] | Common Stock [Member]

Business Combination [Abstract]

Common stock, par value (in dollars per share)

$ 1.00

Cash paid, per share (in dollars per share)

$ 3.246

Number of shares issued for each share of common stock in conversion of common stock ( in shares)

0.141

Final aggregate purchase price

$ 65,500

Business acquisition share price (in dollars per share)

$ 6.49

Liabilities [Abstract]

Total consideration

$ 65,500

[1]	Represents the fair value adjustments on net book value of loans, which includes an interest rate mark and credit mark adjustment, the write-off of deferred fees/costs and premiums and the elimination of Savoy’s allowance for loan losses.
[2]	Represents the fair value adjustments to reflect the fair value of premises and equipment.
[3]	Represents the fair value of core deposit intangible recorded, which will be amortized on an accelerated basis over the estimated average life of the deposit base.
[4]	Represents an adjustment to accrued interest receivable acquired.
[5]	Represents an adjustment to other assets acquired. The largest adjustment was the net deferred tax assets resulting from the fair value adjustment related to the acquired assets, liabilities assumed, and identifiable intangible assets recorded.
[6]	Represents the fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits.
[7]	Represents the fair value adjustments on an FHLB borrowing, which will be treated as a reduction to interest expense over the life of the borrowing.
[8]	Represents an adjustment to other liabilities assumed.

BUSINESS COMBINATIONS, Consideration Paid (Details) - Savoy Bank [Member] - USD ($) $ in Thousands			3 Months Ended
	May 26, 2021	Apr. 30, 2021	Dec. 31, 2021
Consideration Paid [Abstract]
Common stock issued (1,357,567 shares issued)	$ 32,521
Cash payments to common shareholders	32,991
Total consideration paid	$ 65,512
Business Combination [Abstract]
Goodwill deductible for income tax purposes			$ 0
Maximum [Member]
Business Combination [Abstract]
Fair value refinement period			1 year
Common Stock [Member]
Consideration Paid [Abstract]
Total consideration paid		$ 65,500
Business Combination [Abstract]
Common stock issued as part of consideration (in shares)	1,357,567

BUSINESS COMBINATIONS, Loans Acquired in Savoy Acquisition (Details) - Savoy Bank [Member] $ in Thousands	May 26, 2021 USD ($)
Loans Acquired in Acquisition [Abstract]
Contractually required principal and interest at acquisition	$ 14,416
Contractual cash flows not expected to be collected (non-accretable discount)	(3,467)
Expected cash flows at acquisition	10,949
Interest component of expected cash flows (accretable discount)	(540)
Fair value of acquired purchased credit impaired loans	$ 10,409

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
EARNINGS PER COMMON SHARE [Abstract]
Antidilutive stock options (in shares)	0	0
Basic earnings per common share [Abstract]
Net income	$ 6,537	$ 1,519
Weighted average common shares outstanding for basic earnings per common share (in shares)	5,562,939	4,180,936
Basic earnings per common share (in dollars per share)	$ 1.18	$ 0.36
Diluted earnings per common share [Abstract]
Net income	$ 6,537	$ 1,519
Weighted average common shares outstanding (in shares)	5,562,939	4,180,936
Add: dilutive effects of assumed exercises of stock options (in shares)	95,489	64,860
Average shares and dilutive potential common shares (in shares)	5,658,428	4,245,796
Diluted earnings per common share (in dollars per share)	$ 1.16	$ 0.36

SECURITIES, Investment Securities Available for Sale and Held to Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
Available for sale [Abstract]
Amortized cost	$ 7,139	$ 7,422
Gross unrealized gains	399	326
Gross unrealized losses	(2)	(1)
Fair value	7,536	7,747
Held to maturity [Abstract]
Amortized cost	4,834	8,611
Gross unrealized gains	174	258
Gross unrealized losses	0	(4)
Fair value	5,008	8,865
Investment Securities [Abstract]
Amortized cost	11,973	16,033
Gross unrealized gains	573	584
Gross unrealized losses	(2)	(5)
Fair value	12,544	16,612
Gross unrealized losses in a continuous loss position for less than twelve months	2	5
Investment securities pledged to secure public deposits	4,800	5,100
U.S. GSE Securities [Member] \| Residential Mortgage Backed Securities [Member]
Available for sale [Abstract]
Amortized cost	439	722
Gross unrealized gains	78	112
Gross unrealized losses	(2)	(1)
Fair value	515	833
Held to maturity [Abstract]
Amortized cost	2,154	2,417
Gross unrealized gains	48	74
Gross unrealized losses	0	0
Fair value	2,202	2,491
U.S. GSE Securities [Member] \| Commercial Mortgage Backed Securities [Member]
Held to maturity [Abstract]
Amortized cost	2,680	2,694
Gross unrealized gains	126	175
Gross unrealized losses	0	0
Fair value	2,806	2,869
Corporate Bonds [Member]
Available for sale [Abstract]
Amortized cost	6,700	6,700
Gross unrealized gains	321	214
Gross unrealized losses	0	0
Fair value	$ 7,021	6,914
Held to maturity [Abstract]
Amortized cost		3,500
Gross unrealized gains		9
Gross unrealized losses		(4)
Fair value		$ 3,505

SECURITIES, Securities Portfolio Presented by Contractual Maturity (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Sep. 30, 2021
Securities Available for Sale, Amortized Cost [Abstract]
Five to ten years	$ 6,700
Amortized cost	7,139		$ 7,422
Securities Available for Sale, Fair Value [Abstract]
Five to ten years	7,021
Fair value	7,536		7,747
Securities Held to Maturity, Amortized Cost [Abstract]
One to five years	0
Five to ten years	0
Amortized cost	4,834		8,611
Securities Held to Maturity, Fair Value [Abstract]
One to five years	0
Five to ten years	0
Fair value	5,008		8,865
Investment Securities [Abstract]
Amortized cost	11,973		16,033
Fair value	12,544		16,612
Proceeds from sales of securities available for sale	0	$ 0
U.S. GSE Securities [Member] \| Residential Mortgage Backed Securities [Member]
Securities Available for Sale, Amortized Cost [Abstract]
Without single maturity date	439
Amortized cost	439		722
Securities Available for Sale, Fair Value [Abstract]
Without single maturity date	515
Fair value	515		833
Securities Held to Maturity, Amortized Cost [Abstract]
Without single maturity date	2,154
Amortized cost	2,154		2,417
Securities Held to Maturity, Fair Value [Abstract]
Without single maturity date	2,202
Fair value	2,202		2,491
U.S. GSE Securities [Member] \| Commercial Mortgage Backed Securities [Member]
Securities Held to Maturity, Amortized Cost [Abstract]
Without single maturity date	2,680
Amortized cost	2,680		2,694
Securities Held to Maturity, Fair Value [Abstract]
Without single maturity date	2,806
Fair value	$ 2,806		$ 2,869

LOANS, Classification of Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	$ 1,276,449	$ 1,246,605
Net deferred costs (fees)	985	520
Total loans	1,277,434	1,247,125
Allowance for loan losses	(9,386)	(8,552)	$ (7,979)	$ (7,869)
Loans held for investment, net	1,268,048	1,238,573
Servicing of loans to others	241,200	233,200
Loans held for sale	$ 0	0
PPP Loans [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Interest rate	1.00%
Amount of loans forgiven	$ 293,200
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]
Extension to loan term	5 years
Loan term	5 years
Residential Real Estate [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	$ 436,348	444,011
Total loans	436,569	444,140
Allowance for loan losses	(4,115)	(4,155)	(5,094)	(5,103)
Multi-family [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	358,456	266,294
Total loans	358,831	266,714
Allowance for loan losses	(2,568)	(2,433)	(1,619)	(1,506)
Commercial Real Estate [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	360,610	348,641
Total loans	360,798	348,807
Allowance for loan losses	(2,518)	(1,884)	(1,221)	(1,221)
Commercial and Industrial [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	109,562	172,274
Total loans	109,718	172,077
Allowance for loan losses	(184)	(79)	(44)	(38)
Commercial and Industrial [Member] \| PPP Loans [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	72,900	140,400
Construction and Land Development [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	11,444	15,374
Total loans	11,487	15,374
Allowance for loan losses	0	0	0	0
Consumer [Member]
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	29	11
Total loans	31	13
Allowance for loan losses	$ (1)	$ (1)	$ (1)	$ (1)

LOANS, Carrying Amount for Purchased Credit Impaired Loans (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Carrying Amount for Purchased Credit Impaired Loans [Abstract]
Total recorded investment	$ 5,489
Commercial Real Estate [Member]
Carrying Amount for Purchased Credit Impaired Loans [Abstract]
Total recorded investment	3,590
Commercial and Industrial [Member]
Carrying Amount for Purchased Credit Impaired Loans [Abstract]
Total recorded investment	$ 1,899

LOANS, Changes in Accretable Difference on Purchased Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Changes in Accretable Difference on Purchased Loans [Abstract]
Balance at beginning of period	$ 346
Accretable differences acquired	0
Accretion	(1,035)
Adjustments to accretable difference due to changes in expected cash flows	363
Other changes, net	416
Ending balance	90
Amount from sale of loans	35,200	$ 8,400
Recognized net gains amount	$ 1,492	$ 181

LOANS, Activity in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning Balance	$ 8,552	$ 7,869
Charge-offs	(66)	0
Recoveries	0	10
Provision (credit) for loan losses	900	100
Ending Balance	9,386	7,979
Residential Real Estate Loans [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning Balance	4,155	5,103
Charge-offs	0	0
Recoveries	0	0
Provision (credit) for loan losses	(40)	(9)
Ending Balance	4,115	5,094
Multi-family Loans [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning Balance	2,433	1,506
Charge-offs	(66)	0
Recoveries	0	0
Provision (credit) for loan losses	201	113
Ending Balance	2,568	1,619
Commercial Real Estate [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning Balance	1,884	1,221
Charge-offs	0	0
Recoveries	0	0
Provision (credit) for loan losses	634	0
Ending Balance	2,518	1,221
Commercial and Industrial [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning Balance	79	38
Charge-offs	0	0
Recoveries	0	10
Provision (credit) for loan losses	105	(4)
Ending Balance	184	44
Construction and Land Development Loans [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning Balance	0	0
Charge-offs	0	0
Recoveries	0	0
Provision (credit) for loan losses	0	0
Ending Balance	0	0
Consumer Loans [Member]
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning Balance	1	1
Charge-offs	0	0
Recoveries	0	0
Provision (credit) for loan losses	0	0
Ending Balance	$ 1	$ 1

LOANS, Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment	$ 0	$ 0
Collectively evaluated for impairment	9,386	8,552
Purchased-credit impaired	0	0
Total allowance for loan losses	9,386	8,552	$ 7,979	$ 7,869
Loans [Abstract]
Individually evaluated for impairment	7,750	8,673
Collectively evaluated for impairment	1,264,195	1,228,211
Purchased credit impaired	5,489	10,241
Total loans	1,277,434	1,247,125
Residential Real Estate Loans [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	4,115	4,155
Purchased-credit impaired	0	0
Total allowance for loan losses	4,115	4,155	5,094	5,103
Loans [Abstract]
Individually evaluated for impairment	6,315	7,198
Collectively evaluated for impairment	430,254	436,942
Purchased credit impaired	0	0
Total loans	436,569	444,140
Multi-family [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	2,568	2,433
Purchased-credit impaired	0	0
Total allowance for loan losses	2,568	2,433	1,619	1,506
Loans [Abstract]
Individually evaluated for impairment	432	458
Collectively evaluated for impairment	358,399	266,256
Purchased credit impaired	0	0
Total loans	358,831	266,714
Commercial Real Estate [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	2,518	1,884
Purchased-credit impaired	0	0
Total allowance for loan losses	2,518	1,884	1,221	1,221
Loans [Abstract]
Individually evaluated for impairment	523	517
Collectively evaluated for impairment	356,685	339,966
Purchased credit impaired	3,590	8,324
Total loans	360,798	348,807
Commercial and Industrial [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	184	79
Purchased-credit impaired	0	0
Total allowance for loan losses	184	79	44	38
Loans [Abstract]
Individually evaluated for impairment	480	500
Collectively evaluated for impairment	107,339	169,660
Purchased credit impaired	1,899	1,917
Total loans	109,718	172,077
Construction and Land Development [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	0	0
Purchased-credit impaired	0	0
Total allowance for loan losses	0	0	0	0
Loans [Abstract]
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	11,487	15,374
Purchased credit impaired	0	0
Total loans	11,487	15,374
Consumer [Member]
Allowance for Loan Losses [Abstract]
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	1	1
Purchased-credit impaired	0	0
Total allowance for loan losses	1	1	$ 1	$ 1
Loans [Abstract]
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	31	13
Purchased credit impaired	0	0
Total loans	$ 31	$ 13

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

3 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Sep. 30, 2021

Unpaid principal balance

$ 7,750

$ 8,821

Recorded investment

7,750

8,673

Average recorded investment and interest income recognized [Abstract]

Average recorded investment

7,788

$ 5,729

Interest income recognized

^[1]

Residential Real Estate [Member]

Unpaid principal balance

6,315

7,382

Recorded investment

6,315

7,198

Average recorded investment and interest income recognized [Abstract]

Average recorded investment

6,347

5,655

Interest income recognized

^[1]

Multi-family [Member]

Unpaid principal balance

432

382

Recorded investment

432

458

Average recorded investment and interest income recognized [Abstract]

Average recorded investment

440

Interest income recognized

^[1]

Commercial Real Estate [Member]

Unpaid principal balance

523

522

Recorded investment

523

517

Average recorded investment and interest income recognized [Abstract]

Average recorded investment

520

Interest income recognized

^[1]

Commercial and Industrial [Member]

Unpaid principal balance

480

535

Recorded investment

480

$ 500

Average recorded investment and interest income recognized [Abstract]

Average recorded investment

481

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

Dec. 31, 2021

Sep. 30, 2021

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

Non-accrual

$ 6,115

$ 7,028

Total past due and non-accrual

12,179

15,241

Purchased credit impaired loans

5,489

10,241

Total

1,277,434

1,247,125

30-59 Days Past Due [Member]

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

Recorded total loans

5,263

6,612

60-89 Days Past Due [Member]

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

Recorded total loans

801

1,601

Greater than 89 Days Past Due [Member]

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

Recorded total loans

Current [Member]

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

Recorded total loans

1,259,766

1,221,643

Residential Real Estate [Member]

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

Non-accrual

4,680

^[1]

5,554

^[2]

Total past due and non-accrual

5,049

8,187

Purchased credit impaired loans

Total

436,569

444,140

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

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

Recorded total loans

1,032

Non-accrual

296

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

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

Recorded total loans

317

1,601

Non-accrual

996

1,026

Residential Real Estate [Member] | Greater than 89 Days Past Due [Member]

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

Recorded total loans

Non-accrual

3,388

4,528

Residential Real Estate [Member] | Current [Member]

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

Recorded total loans

431,520

435,953

Multi-family [Member]

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

Non-accrual

432

^[3]

458

^[4]

Total past due and non-accrual

432

458

Purchased credit impaired loans

Total

358,831

266,714

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

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

Recorded total loans

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

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

Recorded total loans

Multi-family [Member] | Greater than 89 Days Past Due [Member]

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

Recorded total loans

Multi-family [Member] | Current [Member]

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

Recorded total loans

358,399

266,256

Commercial Real Estate [Member]

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

Non-accrual

523

^[5]

1,016

^[6]

Total past due and non-accrual

5,591

2,955

Purchased credit impaired loans

3,590

8,324

Total

360,798

348,807

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

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

Recorded total loans

5,068

1,939

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

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

Recorded total loans

Commercial Real Estate [Member] | Greater than 89 Days Past Due [Member]

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

Recorded total loans

Commercial Real Estate [Member] | Current [Member]

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

Recorded total loans

351,617

337,528

Commercial and Industrial [Member]

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

Non-accrual

480

^[7]

Total past due and non-accrual

1,107

3,641

Purchased credit impaired loans

1,899

1,917

Total

109,718

172,077

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

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

Recorded total loans

143

3,641

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

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

Recorded total loans

484

Commercial and Industrial [Member] | Greater than 89 Days Past Due [Member]

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

Recorded total loans

Commercial and Industrial [Member] | Current [Member]

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

Recorded total loans

106,712

166,519

Construction and Land Development [Member]

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

Non-accrual

Total past due and non-accrual

Purchased credit impaired loans

Total

11,487

15,374

Construction and Land Development [Member] | 30-59 Days Past Due [Member]

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

Recorded total loans

Construction and Land Development [Member] | 60-89 Days Past Due [Member]

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

Recorded total loans

Construction and Land Development [Member] | Greater than 89 Days Past Due [Member]

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

Recorded total loans

Construction and Land Development [Member] | Current [Member]

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

Recorded total loans

11,487

15,374

Consumer [Member]

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

Non-accrual

Total past due and non-accrual

Purchased credit impaired loans

Total

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

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

Recorded total loans

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

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

Recorded total loans

Consumer [Member] | Greater than 89 Days Past Due [Member]

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

Recorded total loans

Consumer [Member] | Current [Member]

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

Recorded total loans

$ 31

$ 13

[1]	Of the residential real estate non-accrual loans, $296 were 31 days past due, $996 were 61 days past due and $3,388 were greater than 89 days past due.
[2]	Of the residential real estate non-accrual loans, $1,026 were 61 days past due and $4,528 were greater than 89 days past due.
[3]	Multi-family non-accrual loans at December 31, 2021 were greater than 89 days past due.
[4]	Multi-family non-accrual loans at September 30, 2021 were greater than 89 days past due.
[5]	Commercial real estate non-accrual loans at December 31, 2021 were greater than 89 days past due.
[6]	Commercial real estate non-accrual loans at September 30, 2021 were greater than 89 days past due.
[7]	Commercial and industrial non-accrual loans at December 31, 2021 were greater than 89 days past due.

LOANS, Troubled Debt Restructurings (Details) $ in Millions	3 Months Ended
LOANS, Troubled Debt Restructurings (Details) $ in Millions	Dec. 31, 2021 USD ($) Loan	Dec. 31, 2020 Loan	Sep. 30, 2021 USD ($)
Troubled Debt Restructurings [Abstract]
Recorded investment in TDRs	$ 1.7		$ 1.7
Specific reserves allocated to troubled debt restructurings	0.0		0.0
Commitments to lend additional funds in troubled debt restructurings	$ 0.0		$ 0.0
TDR's with subsequent payment default \| Loan	0	0
Threshold period for payment default	90 days
Number of newly added TDRs \| Loan	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	519
Aggregate amount of loan modifications made by other than troubled debt restructurings, aggregate principal balances	$ 367.1
Number of loans in forbearance \| Loan	12
Amount of loans in forbearance	$ 11.0
Number of loans in forbearance, qualified \| Loan	5
Amount of loans in forbearance, qualified	$ 2.9

EQUITY COMPENSATION PLANS, 2021 and 2018 Equity Compensation Plan (Details)	3 Months Ended
	Dec. 31, 2021 shares
2021 Plan [Member]
Equity Compensation Plans [Abstract]
Number of common shares approved for issuance (in shares)	427,500
Number of shares available for issuance (in shares)	427,500
2018 Plan [Member]
Equity Compensation Plans [Abstract]
Number of common shares approved for issuance (in shares)	346,000
Number of shares available for issuance (in shares)	198,735
Stock Options [Member]
Equity Compensation Plans [Abstract]
Number of Savoy options converted (in shares)	71,900

EQUITY COMPENSATION PLANS, Stock Options (Details) - Stock Options [Member] - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Sep. 30, 2021

Equity Compensation Plans [Abstract]

Award vesting period

3 years

Contractual term

10 years

Number of Options [Roll Forward]

Outstanding, beginning of period (in shares)

227,406

Granted (in shares)

Exercised (in shares)

Forfeited (in shares)

Outstanding, end of period (in shares)

227,406

^[1]

227,406

Weighted-Average Exercise Price Per Share [Roll Forward]

Outstanding, beginning of period (in dollars per share)

$ 9.50

Granted (in dollars per share)

Exercised (in dollars per share)

Forfeited (in dollars per share)

Outstanding, end of period (in dollars per share)

$ 9.50

^[1]

$ 9.50

Aggregate Intrinsic Value [Abstract]

Aggregate intrinsic value, outstanding

$ 2,043

^[1]

$ 2,043

Weighted Average Remaining Contractual Term [Abstract]

Weighted-average remaining contractual term, outstanding

3 years 2 months 12 days

^[1]

3 years 6 months 3 days

Compensation expenses

$ 0

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

EQUITY COMPENSATION PLANS, Restricted Stock (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Restricted Stock [Abstract]
Award vesting period	3 years
Number of Shares [Roll Forward]
Unvested, beginning of period (in shares)	75,833
Granted (in shares)	0	7,500
Vested (in shares)	(2,666)
Forfeited (in shares)	(2,887)
Unvested, end of period (in shares)	70,280
Weighted-Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (in dollars per share)	$ 19.87
Granted (in dollars per share)	0
Vested (in dollars per share)	21.49
Forfeited (in dollars per share)	19.07
Unvested, end of period (in dollars per share)	$ 19.84
Compensation expenses	$ 217	$ 229
Unrealized compensation cost	$ 800
Weighted-average term for recognizing unrealized compensation cost	1 year 7 months 13 days
Total fair value of shares vested	$ 49	$ 7

REGULATORY MATTERS (Details) $ in Thousands	3 Months Ended
REGULATORY MATTERS (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)
Total capital to risk-weighted assets [Abstract]
Actual capital, Amount	$ 141,803	$ 132,554
Actual capital, Ratio	0.1552	0.1559
Minimum capital adequacy requirement, Amount	$ 73,114	$ 68,040
Minimum capital adequacy requirement, Ratio	0.0800	0.0800
Minimum capital adequacy requirement with capital conservation buffer, Amount	$ 95,963	$ 89,303
Minimum capital adequacy requirement with capital conservation buffer, Ratio	0.1050	0.1050
Minimum to be well capitalized under prompt corrective action provisions, Amount	$ 91,393	$ 85,050
Minimum to be well capitalized under prompt corrective action provisions, Ratio	0.1000	0.1000
Tier 1 capital to risk-weighted assets [Abstract]
Actual capital, Amount	$ 132,006	$ 123,666
Actual capital, Ratio	0.1444	0.1454
Minimum capital adequacy requirement, Amount	$ 54,836	$ 51,030
Minimum capital adequacy requirement, Ratio	0.0600	0.0600
Minimum capital adequacy requirement with capital conservation buffer, Amount	$ 77,684	$ 72,293
Minimum capital adequacy requirement with capital conservation buffer, Ratio	0.0850	0.0850
Minimum to be well capitalized under prompt corrective action provisions, Amount	$ 73,114	$ 68,040
Minimum to be well capitalized under prompt corrective action provisions, Ratio	0.0800	0.0800
Common equity tier 1 capital to risk-weighted assets [Abstract]
Actual capital, Amount	$ 132,006	$ 123,666
Actual capital, Ratio	0.1444	0.1454
Minimum capital adequacy requirement, Amount	$ 41,127	$ 38,273
Minimum capital adequacy requirement, Ratio	0.0450	0.0450
Minimum capital adequacy requirement with capital conservation buffer, Amount	$ 63,975	$ 59,535
Minimum capital adequacy requirement with capital conservation buffer, Ratio	0.0700	0.0700
Minimum to be well capitalized under prompt corrective action provisions, Amount	$ 59,405	$ 55,283
Minimum to be well capitalized under prompt corrective action provisions, Ratio	0.0650	0.0650
Tier 1 capital to adjusted average assets (leverage) [Abstract]
Actual capital, Amount	$ 132,006	$ 123,666
Actual capital, Ratio	0.0992	0.0945
Minimum capital adequacy requirement, Amount	$ 53,241	$ 52,338
Minimum capital adequacy requirement, Ratio	0.0400	0.0400
Minimum to be well capitalized under prompt corrective action provisions, Amount	$ 66,551	$ 65,423
Minimum to be well capitalized under prompt corrective action provisions, Ratio	0.0500	0.0500
Retained net income available to pay dividends	$ 35,200

FAIR VALUE, Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
Financial Assets [Abstract]
Available-for-sale securities	$ 7,536	$ 7,747
Mortgage servicing rights	3,741	3,690
U.S. GSE Securities [Member] \| Residential Mortgage Backed Securities [Member]
Financial Assets [Abstract]
Available-for-sale securities	515	833
Corporate Bonds [Member]
Financial Assets [Abstract]
Available-for-sale securities	7,021	6,914
Recurring [Member]
Financial Assets [Abstract]
Total	11,277	11,437
Recurring [Member] \| U.S. GSE Securities [Member] \| Residential Mortgage Backed Securities [Member]
Financial Assets [Abstract]
Available-for-sale securities	515	833
Recurring [Member] \| Corporate Bonds [Member]
Financial Assets [Abstract]
Available-for-sale securities	7,021	6,914
Recurring [Member] \| Mortgage Servicing Rights [Member]
Financial Assets [Abstract]
Mortgage servicing rights	3,741	3,690
Recurring [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial Assets [Abstract]
Total	0	0
Recurring [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| U.S. GSE Securities [Member] \| Residential Mortgage Backed Securities [Member]
Financial Assets [Abstract]
Available-for-sale securities	0	0
Recurring [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Corporate Bonds [Member]
Financial Assets [Abstract]
Available-for-sale securities	0	0
Recurring [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] \| Mortgage Servicing Rights [Member]
Financial Assets [Abstract]
Mortgage servicing rights	0	0
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member]
Financial Assets [Abstract]
Total	7,536	7,747
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| U.S. GSE Securities [Member] \| Residential Mortgage Backed Securities [Member]
Financial Assets [Abstract]
Available-for-sale securities	515	833
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Corporate Bonds [Member]
Financial Assets [Abstract]
Available-for-sale securities	7,021	6,914
Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Mortgage Servicing Rights [Member]
Financial Assets [Abstract]
Mortgage servicing rights	0	0
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Financial Assets [Abstract]
Total	3,741	3,690
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| U.S. GSE Securities [Member] \| Residential Mortgage Backed Securities [Member]
Financial Assets [Abstract]
Available-for-sale securities	0	0
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Corporate Bonds [Member]
Financial Assets [Abstract]
Available-for-sale securities	0	0
Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Mortgage Servicing Rights [Member]
Financial Assets [Abstract]
Mortgage servicing rights	$ 3,741	$ 3,690

FAIR VALUE, Significant Inputs Utilized in Cash Flow Models (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)
Fair Value Hierarchy [Abstract]
Servicing rights, valuation technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember
SBA Loans [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, valuation technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Significant Unobservable Inputs (Level 3) [Member] \| Discount Rate [Member] \| Minimum [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input	0.120	0.120
Significant Unobservable Inputs (Level 3) [Member] \| Discount Rate [Member] \| Minimum [Member] \| SBA Loans [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input	0.0479
Significant Unobservable Inputs (Level 3) [Member] \| Discount Rate [Member] \| Maximum [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input	0.145	0.145
Significant Unobservable Inputs (Level 3) [Member] \| Discount Rate [Member] \| Maximum [Member] \| SBA Loans [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input	0.2384
Significant Unobservable Inputs (Level 3) [Member] \| Prepayment Rate [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input	0.2625
Significant Unobservable Inputs (Level 3) [Member] \| Prepayment Rate [Member] \| Minimum [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input		0.2418
Significant Unobservable Inputs (Level 3) [Member] \| Prepayment Rate [Member] \| Minimum [Member] \| SBA Loans [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input	0.0894
Significant Unobservable Inputs (Level 3) [Member] \| Prepayment Rate [Member] \| Maximum [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input		0.2433
Significant Unobservable Inputs (Level 3) [Member] \| Prepayment Rate [Member] \| Maximum [Member] \| SBA Loans [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input	0.2363
Significant Unobservable Inputs (Level 3) [Member] \| Weighted Average Life [Member] \| Minimum [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input	1 year 9 months 18 days	1 year 11 months 15 days
Significant Unobservable Inputs (Level 3) [Member] \| Weighted Average Life [Member] \| Minimum [Member] \| SBA Loans [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input	3 months 10 days
Significant Unobservable Inputs (Level 3) [Member] \| Weighted Average Life [Member] \| Maximum [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input	3 years 7 days	3 years 3 months 18 days
Significant Unobservable Inputs (Level 3) [Member] \| Weighted Average Life [Member] \| Maximum [Member] \| SBA Loans [Member]
Fair Value Hierarchy [Abstract]
Servicing rights, measurement input	5 years 9 months 18 days
Nonrecurring [Member]
Fair Value Hierarchy [Abstract]
Financial instruments measured at fair value	$ 0	$ 0
Impaired loans, related specific allowance	$ 0	$ 0

FAIR VALUE, Changes in Mortgage Servicing Rights (Details) - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Changes in Mortgage Servicing Rights [Roll Forward]
Beginning balance	$ 3,690	$ 155
Additions	168	0
Adjustment to fair value	(117)	(11)
Ending balance	$ 3,741	$ 144

FAIR VALUE, Carrying Amounts and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
Carrying Amount [Member]
Financial Assets [Abstract]
Cash and cash equivalents	$ 114,951	$ 166,544
Securities held to maturity	4,834	8,611
Securities available-for-sale	7,536	7,747
Loans, net	1,268,048	1,238,573
Federal Home Loan Bank stock	4,057	3,714
Accrued interest receivable	8,858	9,363
Financial Liabilities [Abstract]
Time deposits	326,883	377,836
Demand and other deposits	849,868	786,826
Borrowings	113,274	159,642
Subordinated debentures	24,504	24,513
Accrued interest payable	879	1,290
Fair Value [Member]
Financial Assets [Abstract]
Cash and cash equivalents	114,951	166,544
Securities held to maturity	5,008	8,865
Securities available-for-sale	7,536	7,747
Loans, net	1,282,865	1,278,056
Accrued interest receivable	8,858	9,363
Financial Liabilities [Abstract]
Time deposits	326,517	378,333
Demand and other deposits	849,868	786,826
Borrowings	112,852	159,608
Subordinated debentures	27,083	27,092
Accrued interest payable	879	1,290
Fair Value [Member] \| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial Assets [Abstract]
Cash and cash equivalents	114,951	166,544
Securities held to maturity	0	0
Securities available-for-sale	0	0
Loans, net	0	0
Accrued interest receivable	0	0
Financial Liabilities [Abstract]
Time deposits	0	0
Demand and other deposits	849,868	786,826
Borrowings	0	0
Subordinated debentures	0	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	5,008	8,865
Securities available-for-sale	7,536	7,747
Loans, net	0	0
Accrued interest receivable	116	211
Financial Liabilities [Abstract]
Time deposits	326,517	378,333
Demand and other deposits	0	0
Borrowings	112,852	159,608
Subordinated debentures	27,083	27,092
Accrued interest payable	878	713
Fair Value [Member] \| Significant Unobservable Inputs (Level 3) [Member]
Financial Assets [Abstract]
Cash and cash equivalents	0	0
Securities held to maturity	0	0
Securities available-for-sale	0	0
Loans, net	1,282,865	1,278,056
Accrued interest receivable	8,742	9,152
Financial Liabilities [Abstract]
Time deposits	0	0
Demand and other deposits	0	0
Borrowings	0	0
Subordinated debentures	0	0
Accrued interest payable	$ 0	$ 576

BORROWINGS (Details) - USD ($) $ in Thousands	3 Months Ended
BORROWINGS (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
Outstanding FHLB Advances Contractual Maturities, Amount [Abstract]
2022	$ 10,000	$ 4,000
2023	11,995	12,040
2024	18,860	18,860
2025	7,080	7,080
FHLB advances outstanding	$ 47,935	$ 41,980
Outstanding FHLB Advances Contractual Maturities, Weighted Average Rate [Abstract]
2022	0.34%	2.02%
2023	2.23%	2.23%
2024	0.98%	0.98%
2025	0.58%	0.58%
Weighted average rate	1.10%	1.37%
Additional eligible borrowings from FHLB	$ 26,700
Federal Reserve Borrowings [Abstract]
Borrowings	$ 113,274	$ 159,642
Minimum [Member]
Federal Home Loan Bank ("FHLB") Advances [Abstract]
Interest rate	0.34%	0.37%
Maximum [Member]
Federal Home Loan Bank ("FHLB") Advances [Abstract]
Interest rate	2.96%	2.96%
Federal Home Loan Bank Advances [Member]
Federal Home Loan Bank ("FHLB") Advances [Abstract]
Maturity date, earliest	2022	2021
Maturity date, last	2025	2025
Unsecured Debt [Member]
Correspondent Bank Borrowings [Abstract]
Line of credit available for borrowing	$ 55,000
Borrowings outstanding	0	$ 0
PPPLF [Member]
Federal Reserve Borrowings [Abstract]
Borrowings	$ 65,300	$ 117,700
Borrowing rate of interest	0.35%	0.35%
PPP Loans [Member] \| Minimum [Member]
Federal Reserve Borrowings [Abstract]
Maturity term of loan	2 years
PPP Loans [Member] \| Maximum [Member]
Federal Reserve Borrowings [Abstract]
Maturity term of loan	5 years
Residential and Commercial Mortgage Loans [Member]
Federal Home Loan Bank ("FHLB") Advances [Abstract]
Amount of collateral pledged	$ 488,500	$ 432,700

SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands	3 Months Ended
SUBORDINATED DEBENTURES (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Sep. 30, 2021	Oct. 31, 2020
Debt Instruments [Abstract]
Issuance costs recorded in interest expense	$ 22	$ 30
Subordinated Notes [Member]
Debt Instruments [Abstract]
Unamortized issuance costs	500		$ 500
Issuance costs recorded in interest expense	$ 21	$ 13
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 Excluding 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

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Sep. 30, 2021
Changes in Other Comprehensive Income by Component, Net of Tax [Roll Forward]
Balance	$ 122,529	$ 78,043	$ 78,043
Other comprehensive income	54	167
Balance	129,379	80,024	122,529
Amount reclassified from accumulated other comprehensive income		0	0
Accumulated Other Comprehensive Income [Member]
Changes in Other Comprehensive Income by Component, Net of Tax [Roll Forward]
Balance	256	156	156
Other comprehensive income	54	167
Balance	310	323	256
Unrealized Gains and Losses on Available-for-Sale Debt Securities [Member]
Changes in Other Comprehensive Income by Component, Net of Tax [Roll Forward]
Balance	256,000	156,000	156,000
Other comprehensive income	54,000	167,000
Balance	$ 310,000	$ 323,000	$ 256,000

- 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

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

LOANS, Loan Portfolio by Credit Risk Rating (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
Loans Portfolio by Credit Risk Rating [Abstract]
Total	$ 1,276,449	$ 1,246,605
Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	1,234,017	1,194,732
Special Mention [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	25,771	26,548
Substandard [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	16,661	25,322
Doubtful [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	3
Residential [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	436,348	444,011
Residential [Member] \| Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	426,327	433,299
Residential [Member] \| Special Mention [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	4,816	5,115
Residential [Member] \| Substandard [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	5,205	5,594
Residential [Member] \| Doubtful [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	3
Multi-family [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	358,456	266,294
Multi-family [Member] \| Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	354,292	262,984
Multi-family [Member] \| Special Mention [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	3,732	2,852
Multi-family [Member] \| Substandard [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	432	458
Multi-family [Member] \| Doubtful [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Commercial [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	360,610	348,641
Commercial [Member] \| Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	338,852	316,727
Commercial [Member] \| Special Mention [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	15,109	16,274
Commercial [Member] \| Substandard [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	6,649	15,640
Commercial [Member] \| Doubtful [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Commercial and Industrial [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	109,562	172,274
Commercial and Industrial [Member] \| Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	105,071	168,104
Commercial and Industrial [Member] \| Special Mention [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	116	540
Commercial and Industrial [Member] \| Substandard [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	4,375	3,630
Commercial and Industrial [Member] \| Doubtful [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Construction and Land Development [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	11,444	15,374
Construction and Land Development [Member] \| Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	9,446	13,607
Construction and Land Development [Member] \| Special Mention [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	1,998	1,767
Construction and Land Development [Member] \| Substandard [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Construction and Land Development [Member] \| Doubtful [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Consumer [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	29	11
Consumer [Member] \| Pass [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	29	11
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
Consumer [Member] \| Doubtful [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	$ 0	$ 0