Federal Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes for the years ended September 30, 2021, 2020 and 2019 were as follows (dollars in thousands):

	2021		2020		2019
Current:
Federal	$	6,570	$	5,962	$	5,198
Deferred	275		76		703
Provision for income taxes	$	6,845	$	6,038	$	5,901

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities at September 30, 2021 and 2020 were as follows (dollars in thousands):

	2021		2020
Deferred Tax Assets
Allowance for loan losses	$	2,613	$	2,440
Allowance for OREO losses	42		171
OTTI credit impairment on investment securities	64		64
Accrued interest on loans	75		8
Deferred compensation and bonuses	301		372
Reserve for loan commitments	76		81
Operating lease liabilities	495		552
Other	46		69
Total deferred tax assets	3,712		3,757

Deferred Tax Liabilities
Goodwill	1,187		1,187
Loan servicing rights	731		650
Depreciation	787		778
Loan fees/costs	584		428
FHLB stock dividends	38		81
Prepaid expenses	162		98
Purchase accounting adjustment	233		207
Net unrealized gains on investment securities and investments in equity securities	20		23
Operating lease ROU assets	480		543
Total deferred tax liabilities	4,222		3,995
Net deferred tax liabilities	$	(510)	$	(238)

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes for the years ended September 30, 2021, 2020 and 2019 differs from that computed at the federal statutory corporate tax rate as follows (dollars in thousands):

	2021		2020		2019
Expected federal income tax provision at statutory rate	$	7,230	$	6,365	$	6,283
BOLI income	(125)		(124)		(345)
Dividends on ESOP	(88)		(75)		(73)
Stock options tax effect	(167)		(33)		(87)
Other, net	(5)		(95)		123
Provision for income taxes	$	6,845	$	6,038	$	5,901