Federal Income Taxes (Tables)

12 Months Ended

Sep. 30, 2023

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, 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

Schedule of Deferred Tax Assets and Liabilities

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)

Schedule of Effective Income Tax Rate Reconciliation

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