Federal Income Taxes (Tables)

12 Months Ended

Sep. 30, 2022

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, 2022, 2021 and 2020 were as follows (dollars in thousands):

	2022		2021		2020
Current:
Federal	$	6,139	$	6,570	$	5,962
Deferred	(177)		275		76
Provision for income taxes	$	5,962	$	6,845	$	6,038

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities at September 30, 2022 and 2021 were as follows (dollars in thousands):

	2022		2021
Deferred Tax Assets
Allowance for loan losses	$	2,878	$	2,613
Allowance for OREO losses	5		42
OTTI credit impairment on investment securities	62		64
Accrued interest on loans	63		75
Deferred compensation and bonuses	260		301
Reserve for loan commitments	64		76
Operating lease liabilities	434		495
Net unrealized losses on investment securities and investments in equity securities	190		—
Other	66		46
Total deferred tax assets	4,022		3,712

Deferred Tax Liabilities
Goodwill	1,187		1,187
Loan servicing rights	635		731
Depreciation	757		787
Loan fees/costs	771		584
FHLB stock dividends	—		38
Prepaid expenses	175		162
Purchase accounting adjustment	208		233
Net unrealized gains on investment securities and investments in equity securities	—		20
Operating lease ROU assets	416		480
Total deferred tax liabilities	4,149		4,222
Net deferred tax liabilities	$	(127)	$	(510)

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes for the years ended September 30, 2022, 2021 and 2020 differs from that computed at the federal statutory corporate tax rate as follows (dollars in thousands):

	2022		2021		2020
Expected federal income tax provision at statutory rate	$	6,208	$	7,230	$	6,365
BOLI income	(129)		(125)		(124)
Dividends on ESOP	(70)		(88)		(75)
Stock options tax effect	(34)		(167)		(33)
Other, net	(13)		(5)		(95)
Provision for income taxes	$	5,962	$	6,845	$	6,038