INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The Company and its subsidiaries file consolidated income tax returns. The components of consolidated income tax expense (benefit) were as follows for the years ended September 30, 2016 and 2015:

(In thousands)	2016		2015
Current	$	109	$	1,463
Tax benefit allocated to additional paid-in capital related to equity incentive plan		-		149
Deferred		(2,431)		(36)
Income tax expense (benefit)	$	(2,322)	$	1,576

Reconciliation Of Income Tax Expense

The reconciliation of income tax expense (benefit) with the amount which would have been provided at the federal statutory rate of 34 percent follows for the years ended September 30, 2016 and 2015:

(In thousands)	2016		2015
Provision at federal statutory rate	$	1,900	$	2,831
State income tax-net of federal tax benefit		27		93
Tax-exempt interest income		(877)		(772)
Bank owned life insurance		(151)		(444)
Captive insurance net premiums		(297)		(313)
Increase in deferred tax valuation allowance		1,597		-
Historic tax credit		(4,660)		-
Other		139		181
Income tax expense (benefit)	$	(2,322)	$	1,576

Deferred Tax Assets And Liabilities

Significant components of deferred tax assets and liabilities at September 30, 2016 and 2015 are as follows:

(In thousands)	2016		2015
Deferred tax assets:
Allowance for loan losses	$	2,745	$	2,586
Deferred compensation plans		461		412
Equity incentive plans		69		69
Other-than-temporary impairment loss on available for sale securities		14		14
Valuation allowance on other real estate owned		96		89
Interest on nonaccrual loans		193		196
Discount on unguaranteed portion of SBA loans		121		-
Loss on tax credit investment		1,597		-
Historic tax credit carryforward		2,306		-
Deferred loan fees and costs, net		80		46
Gross deferred tax assets		7,682		3,412
Valuation allowance		(1,597)		-
Net deferred tax assets		6,085		3,412

	2016		2015
Deferred tax liabilities:
Unrealized gain on securities available for sale		(3,232)		(2,361)
Accumulated depreciation		(825)		(1,302)
Installment sale		(520)		-
Loan servicing rights		(118)		-
Acquisition purchase accounting adjustments		(507)		(382)
FHLB stock dividends		(130)		(131)
Unrealized gain on trading account securities		(13)		(31)
Unrealized gain on loans held for sale		-		(60)
Other		(320)		(285)
Deferred tax liabilities		(5,665)		(4,552)
Net deferred tax asset (liability)	$	420	$	(1,140)