OTHER REAL ESTATE OWNED

12 Months Ended

Sep. 30, 2016

Other Real Estate [Abstract]

OTHER REAL ESTATE OWNED

(8) OTHER REAL ESTATE OWNED

At September 30, 2016 and 2015, the Bank had other real estate owned held for sale of $519,000 and $618,000, respectively, including $86,000 and $100,000 in former banking facilities held for sale, respectively. During the years ended September 30, 2016 and 2015, foreclosure losses in the amount of $172,000 and $262,000, respectively, were charged-off to the allowance for loan losses. The losses on subsequent write downs of other real estate owned amounted to $100,000 and $73,000 for the years ended September 30, 2016 and 2015, respectively, and were aggregated with realized gains and losses from the sale of other real estate owned, and real estate taxes and other expenses of holding other real estate owned. Net realized gains from the sale of other real estate owned amounted to $150,000 and $123,000 for the years ended September 30, 2016 and 2015, respectively. Real estate taxes, other expenses of holding other real estate owned and net of income received from the operation of other real estate owned held for sale amounted to $78,000 and $50,000 for the years ended September 30, 2016 and 2015, respectively. The net gain or loss is reported in noninterest expense. Realized gains from the sale of other real estate owned totaling $16,000 for the year ended September 30, 2016, were deferred because the sales were financed by the Bank and did not qualify for recognition under generally accepted accounting principles. There were no realized gains from the sale of other real estate owned deferred during the year ended September 30, 2015. At September 30, 2016 and 2015, aggregate deferred gains on the sale of other real estate owned financed by the Bank amounted to $187,000 and $188,000, respectively. The recorded investment in consumer mortgage loans collateralized by residential real estate property in the process of foreclosure at September 30, 2016 and 2015 was $837,000 and $806,000, respectively.