FAIR VALUE (Tables)

9 Months Ended

Jun. 30, 2022

FAIR VALUE

Assets Measured at Fair Value on Recurring Basis

The following presents fair value measurements on a recurring basis at June 30, 2022 and September 30, 2021:

	June 30, 2022
			Fair Value Measurements Using:
			Quoted Prices In				Significant
			Active Markets		Significant Other		Unobservable
	Carrying		for Identical Assets		Observable Inputs		Inputs
(In thousands)	Amount		(Level 1)		(Level 2)		(Level 3)
Financial assets:
Available-for-sale securities:
U.S. GSE residential mortgage-backed securities	$	319	$	—	$	319	$	—
Corporate bonds		6,421		—		6,421		—
Mortgage servicing rights		4,120		—		—		4,120
Total	$	10,860	$	—	$	6,740	$	4,120

	September 30, 2021
			Fair Value Measurements Using:
			Quoted Prices In
			Active Markets				Significant
			for Identical		Significant Other		Unobservable
	Carrying		Assets		Observable Inputs		Inputs
(In thousands)	Amount		(Level 1)		(Level 2)		(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 June 30,				Nine Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Balance at beginning of period	$	4,028	$	130	$	3,690	$	155
Additions		211		3,776		784		3,776
Adjustment to fair value		(119)		(91)		(354)		(116)
Balance at end of period	$	4,120	$	3,815	$	4,120	$	3,815

Carrying Amounts and 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 June 30, 2022 and September 30, 2021:

	June 30, 2022
			Fair Value Measurements Using:
			Quoted Prices In
			Active Markets				Significant
			for Identical		Significant Other		Unobservable
	Carrying		Assets		Observable  Inputs		Inputs		Total Fair
(In thousands)	Amount		(Level 1)		(Level 2)		(Level 3)		Value
Financial assets:
Cash and cash equivalents	$	133,974	$	133,974	$	—	$	—	$	133,974
Securities held-to-maturity		4,509		—		4,309		—		4,309
Securities available-for-sale		6,740		—		6,740		—		6,740
Loans, net		1,404,891		—		—		1,379,005		1,379,005
FHLB stock		3,858		N/A		N/A		N/A		N/A
Accrued interest receivable		7,643		—		117		7,526		7,643
Financial Liabilities:
Time deposits		298,272		—		291,890		—		291,890
Demand and other deposits		1,051,277		1,051,277		—		—		1,051,277
Borrowings		56,963		—		57,192		—		57,192
Subordinated debentures		24,554		—		24,698		—		24,698
Accrued interest payable		611		1		610		—		611

	September 30, 2021
			Fair Value Measurements Using:
			Quoted Prices In
			Active Markets				Significant
			for Identical		Significant Other		Unobservable
	Carrying		Assets		Observable Inputs		Inputs		Total Fair
(In thousands)	Amount		(Level 1)		(Level 2)		(Level 3)		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
FHLB 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