Commitments and Contingent Liabilities

12 Months Ended

Sep. 30, 2022

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

Note 13. Commitments and Contingent Liabilities

Loan Commitments and Other Related Activities

Some financial instruments such as loan commitments, credit lines, letters of credit, and overdraft protection are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk of credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The following represents commitments outstanding:

	September 30,
	2022				2021
(in thousands)	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Standby letters of credit	$	—	$	817	$	—	$	786
Loan commitments outstanding		9,992		17,184		61,375		19,665
Unused lines of credit		—		45,920		—		24,639

Leases

The Company is obligated to make minimum annual rental payments under non-cancelable operating leases. Projected minimum rentals under the existing leases are as follows:

(in thousands)	Total
2023	$	1,921
2024		1,948
2025		1,951
2026		1,775
2027		1,361
Thereafter		3,532
Total	$	12,488

The leases contain certain renewal options and rent escalation clauses which are included in the table above. In addition, the leases provide for additional payments based upon real estate taxes, interest and other charges. Rent expense under operating leases for the years ended September 30, 2022 and 2021 approximated $1.9 million and $1.7 million, respectively.