Income Taxes

12 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The components of the provision for income taxes for the years ended September 30, 2023, 2022 and 2021 were as follows (dollars in thousands):

	2023		2022		2021
Current:
Federal	$	7,167	$	6,139	$	6,570
Deferred	(291)		(177)		275
Provision for income taxes	$	6,876	$	5,962	$	6,845

At September 30, 2023, the Company had income tax receivable of $107,000, which is included in other assets in the accompanying consolidated balance sheets. At September 30, 2022, the Company had an income tax payable of $332,000, which is included in other liabilities and accrued expenses in the accompanying consolidated balance sheets.

The components of the Company’s deferred tax assets and liabilities at September 30, 2023 and 2022 were as follows (dollars in thousands):

	2023		2022
Deferred Tax Assets
Allowance for loan losses	$	3,322	$	2,878
Allowance for OREO losses	5		5
OTTI credit impairment on investment securities	50		62
Accrued interest on loans	58		63
Deferred compensation and bonuses	217		260
Reserve for loan commitments	70		64
Operating lease liabilities	392		434
Net unrealized losses on investment securities and investments in equity securities	288		190
Other	85		66
Total deferred tax assets	4,487		4,022

	2023		2022
Deferred Tax Liabilities
Goodwill	1,187		1,187
Loan servicing rights	446		635
Depreciation	906		757
Loan fees/costs	983		771
Prepaid expenses	172		175
Purchase accounting adjustment	159		208
Operating lease ROU assets	372		416
Total deferred tax liabilities	4,225		4,149
Net deferred tax assets (liabilities)	$	262	$	(127)

Deferred tax assets are included in other assets, and deferred tax liabilities are included in other liabilities and accrued expenses in the accompanying consolidated balance sheets.

No valuation allowance for deferred tax assets was recorded as of September 30, 2023 and 2022, as management believes that it is more likely than not that all of the deferred tax assets will be realized based on management's expectations of future taxable income.

The provision for income taxes for the years ended September 30, 2023, 2022 and 2021 differs from that computed at the federal statutory corporate tax rate as follows (dollars in thousands):

	2023		2022		2021
Expected federal income tax provision at statutory rate	$	7,139	$	6,208	$	7,230
BOLI income	(148)		(129)		(125)
Dividends on Employee Stock Ownership Plan ("ESOP") stock	(71)		(70)		(88)
Stock options tax effect	(66)		(34)		(167)
Other, net	22		(13)		(5)
Provision for income taxes	$	6,876	$	5,962	$	6,845