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

9 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Schedule of Loans Receivable, Net

Loans receivable, net were comprised of the following:

	June 30,			September 30,
	2023			2022
	(In thousands)
One-to-four family residential	$	236,633		$	214,377
Commercial real estate		402,349			342,791
Construction		19,249			15,230
Home equity lines of credit		18,737			18,704
Commercial business		23,129			34,672
Other		2,433			3,130
Total loans receivable		702,530			628,904
Net deferred loan fees		(844	)		(628	)
Allowance for loan losses		(8,378	)		(8,433	)
Total loans receivable, net	$	693,308		$	619,843

Schedule of Impaired Loans

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

					Impaired
					Loans with
	Impaired Loans with				No Specific
	Specific Allowance				Allowance		Total Impaired Loans
									Unpaid
	Recorded		Related		Recorded		Recorded		Principal
	Investment		Allowance		Investment		Investment		Balance
June 30, 2023	(In thousands)
One-to-four family residential	$	—	$	—	$	1,788	$	1,788	$	1,788
Commercial real estate		—		—		1,138		1,138		1,138
Construction		—		—		777		777		842
Commercial business		—		—		148		148		148
Total impaired loans	$	—	$	—	$	3,851	$	3,851	$	3,916
September 30, 2022
One-to four-family residential	$	—	$	—	$	1,512	$	1,512	$	1,512
Commercial real estate		—		—		1,159		1,159		1,159
Construction		2,835		114		—		2,835		2,900
Commercial business		—		—		153		153		153
Total impaired loans	$	2,835	$	114	$	2,824	$	5,659	$	5,724

Schedule of Average Recorded Investment in Impaired Loans

The following tables present the average recorded investment in impaired loans and the interest income recognized on impaired loans for the three and nine months ended June 30, 2023 and 2022.

	Three Months Ended		Nine Months Ended
	June 30, 2023		June 30, 2023
	(In thousands)
One-to-four family residential	$	1,777	$	1,645
Commercial real estate		1,142		1,220
Construction		1,806		2,149
Commercial business		342		312
Average investment in impaired loans	$	5,067	$	5,326
Interest income recognized on
an accrual basis on impaired loans
One-to-four family residential	$	22	$	64
Commercial real estate		13		39
Commercial business		2		5
Total	$	37	$	108

	Three Months Ended		Nine Months Ended
	June 30, 2022		June 30, 2022
	(In thousands)
One-to-four family residential	$	1,531	$	1,760
Commercial real estate		1,174		1,516
Construction		4,580		4,580
Commercial business		829		1,055
Average investment in impaired loans	$	8,114	$	8,911
Interest income recognized on
an accrual basis on impaired loans
One-to-four family residential	$	21	$	63
Commercial real estate		23		71
Commercial business		2		5
Total	$	46	$	139

Schedule of Bank’s Internal Risk Rating System

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

			Special
	Pass		Mention		Substandard		Doubtful		Total
	(In  thousands)
June 30, 2023
One-to-four family residential	$	235,248	$	962	$	423	$	—	$	236,633
Commercial real estate		401,962		—		387		—		402,349
Construction		16,752		—		2,497		—		19,249
Home equity lines of credit		18,737		—		—		—		18,737
Commercial business		23,129		—		—		—		23,129
Other		2,433		—		—		—		2,433
Total	$	698,261	$	962	$	3,307	$	—	$	702,530
September 30, 2022
One-to-four family residential	$	213,173	$	980	$	224	$	—	$	214,377
Commercial real estate		342,593		198		—		—		342,791
Construction		10,652		—		4,578		—		15,230
Home equity lines of credit		18,704		—		—		—		18,704
Commercial business		34,672		—		—		—		34,672
Other		3,130		—		—		—		3,130
Total	$	622,924	$	1,178	$	4,802	$	—	$	628,904

Schedule of the Loan Portfolio by Analyzing the Age

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans for the periods presented:

			30-59		60-89
			Days		Days		90 Days +		Total		Non-		Total
	Current		Past Due		Past Due		Past Due		Past Due		Accrual		Loans
	(Dollars in  thousands)
June 30, 2023
One-to-four family residential	$	236,093	$	—	$	369	$	171	$	540	$	171	$	236,633
Commercial real estate		399,621		—		116		2,612		2,728		2,612		402,349
Construction		18,472		—		—		777		777		777		19,249
Home equity lines of credit		18,737		—		—		—		—		—		18,737
Commercial business		23,109		—		20		—		20		—		23,129
Other		2,433		—		—		—		—		—		2,433
Total	$	698,465	$	—	$	505	$	3,560	$	4,065	$	3,560	$	702,530
September 30, 2022
One-to four-family residential	$	213,903	$	300	$	174	$	—	$	474	$	—	$	214,377
Commercial real estate		342,404		—		387		—		387		—		342,791
Construction		12,395		—		—		2,835		2,835		2,835		15,230
Home equity lines of credit		18,704		—		—		—		—		—		18,704
Commercial business		34,672		—		—		—		—		—		34,672
Other		3,130		—		—		—		—		—		3,130
Total	$	625,208	$	300	$	561	$	2,835	$	3,696	$	2,835	$	628,904

Schedule of Allowance for Loan Losses by Loan Category

The following table summarizes the ALL by loan category and the related activity for the nine months ended June 30, 2023 and 2022:

	One-to-Four									Home Equity
	Family			Commercial						Lines of			Commercial
	Residential			Real Estate			Construction			Credit			Business			Other		Unallocated			Total
	(In thousands)
Balance- September 30, 2022	$	1,223		$	4,612		$	461		$	263		$	1,484		$	1	$	389		$	8,433
Charge-offs		—			—			—			—			—			—		—			—
Recoveries		—			—			—			—			—			—		—			—
Provision (credit)		12			518			65			(7	)		(109	)		—		(162	)		317
Balance- December 31, 2022	$	1,235		$	5,130		$	526		$	256		$	1,375		$	1	$	227		$	8,750
Charge-offs		—			—			—			—			(102	)		—		—			(102	)
Recoveries		—			—			—			—			—			—		—			—
Provision (credit)		35			280			(58	)		(10	)		62			—		(113	)		196
Balance- March 31, 2023	$	1,270		$	5,410		$	468		$	246		$	1,335		$	1	$	114		$	8,844
Charge-offs		—			—			—			—			(386	)		—		—			(386	)
Recoveries		1			—			—			—			—			—		—			1
Provision (credit)		(102	)		(318	)		(21	)		(15	)		(41	)		—		416			(81	)
Balance- June 30, 2023	$	1,169		$	5,092		$	447		$	231		$	908		$	1	$	530		$	8,378

	One-to-Four									Home Equity
	Family			Commercial						Lines of			Commercial
	Residential			Real Estate			Construction			Credit			Business			Other			Unallocated			Total
	(In thousands)
Balance- September 30, 2021	$	1,136		$	3,744		$	594		$	232		$	2,046		$	15		$	308		$	8,075
Charge-offs		—			—			—			—			—			—			—			—
Recoveries		—			53			—			—			—			—			—			53
Provision (credit)		(43	)		(90	)		130			—			83			(14	)		35			100
Balance- December 31, 2021	$	1,093		$	3,706		$	724		$	232		$	2,129		$	1		$	343		$	8,228
Charge-offs		—			—			—			—			—			—			—			—
Recoveries		1			—			—			—			—			—			—			1
Provision (credit)		19			376			79			(12	)		(290	)		1			(102	)		71
Balance- March 31, 2022	$	1,113		$	4,082		$	803		$	220		$	1,839		$	2		$	241		$	8,300
Charge-offs		—			—			—			—			—			—			—			—
Recoveries		—			—			—			—			—			—			—			—
Provision (credit)		35			334			(196	)		5			(62	)		(1	)		90			205
Balance- June 30, 2022	$	1,148		$	4,416		$	607		$	225		$	1,777		$	1		$	331		$	8,505

	One-to-Four						Home Equity
	Family		Commercial				Lines of		Commercial
	Residential		Real Estate		Construction		Credit		Business		Other		Unallocated		Total
	(In  thousands)
Allowance for Loan Losses:
Balance - June 30, 2023	$	1,169	$	5,092	$	447	$	231	$	908	$	1	$	530	$	8,378
Individually evaluated for impairment		—		—		—		—		—		—		—		—
Collectively evaluated for impairment		1,169		5,092		447		231		908		1		530		8,378
Loans receivable:
Balance - June 30, 2023	$	236,633	$	402,349	$	19,249	$	18,737	$	23,129	$	2,433	$	—	$	702,530
Individually evaluated for impairment		1,788		1,138		777		—		148		—		—		3,851
Collectively evaluated for impairment		234,845		401,211		18,472		18,737		22,981		2,433		—		698,679

	One-to-Four						Home Equity
	Family		Commercial				Lines of		Commercial
	Residential		Real Estate		Construction		Credit		Business		Other		Unallocated		Total
	(In  thousands)
Allowance for Loan Losses:
Balance - September 30, 2022	$	1,223	$	4,612	$	461	$	263	$	1,484	$	1	$	389	$	8,433
Individually evaluated for impairment		—		—		114		—		—		—		—		114
Collectively evaluated for impairment		1,223		4,612		347		263		1,484		1		389		8,319
Loans receivable:
Balance - September 30, 2022	$	214,377	$	342,791	$	15,230	$	18,704	$	34,672	$	3,130	$	—	$	628,904
Individually evaluated for impairment		1,512		1,159		2,835		—		153		—		—		5,659
Collectively evaluated for impairment		212,865		341,632		12,395		18,704		34,519		3,130		—		623,245

Schedule of Troubled Debt Restructuring

There was one TDR loan modification totaling $106,000 during the nine months ended June 30, 2023. Information on the TDR is summarized as follows:

	Three Months Ended June 30, 2023
	Number of		Investment Before		Investment After
	Loans		TDR Modification		TDR Modification
	(Dollars in thousands)
One-to four-family residential		—	$	—	$	—
Total		—	$	—	$	—

	Nine Months Ended June 30, 2023
	Number of		Investment Before		Investment After
	Loans		TDR Modification		TDR Modification
	(Dollars in thousands)
One-to four-family residential		1	$	97	$	106
Total		1	$	97	$	106

	Three Months Ended June 30, 2022
	Number of		Investment Before		Investment After
	Loans		TDR Modification		TDR Modification
	(Dollars in thousands)
One-to four-family residential		1		112		124
Total		1	$	112	$	124

	Nine Months Ended June 30, 2022
	Number of		Investment Before		Investment After
	Loans		TDR Modification		TDR Modification
	(Dollars in thousands)
One-to four-family residential		2		330		373
Total		2	$	330	$	373