Income Taxes (Tables)

12 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

	Year Ended September 30,
(in thousands)	2023		2022
Current:
Federal	$	2,997	$	5,081
State		830		540
Total current		3,827		5,621
Deferred:
Federal		1,135		1,055
State		260		735
Total deferred		1,395		1,790
Change in valuation allowance		(199)		(472)
Total income tax expense	$	5,023	$	6,939

Reconciliation of Reported Income Tax Expense

	Year Ended September 30,
	2023				2022
			Percentage				Percentage
			of Pre-tax				of Pre-tax
(in thousands)	Amount		Earnings		Amount		Earnings
Federal income tax expense computed by applying the statutory rate to income before income taxes	$	4,239	21.0	%	$	6,404	21.0	%
State taxes, net of federal benefit		705	3.5	%		1,156	3.8	%
Salaries deduction limitation		31	0.2	%		—	—	%
Non-deductible expenses		2	—	%		(1)	—	%
Other		245	1.2	%		(148)	(0.5)	%
Change in valuation allowance		(199)	(1.0)	%		(472)	(1.5)	%
Income tax expense	$	5,023	24.9	%	$	6,939	22.8	%

Composition of Deferred Tax Assets and Liabilities

	September 30,
(in thousands)	2023		2022
Deferred tax assets:
Allowance for loan losses and other contingent liabilities	$	4,544	$	4,014
Operating lease liability		3,334		—
Net operating loss carryforwards		2,758		2,415
Compensation and related benefit obligations		1,278		1,323
Accrued SERP		1,081		1,062
Unrealized loss on securities AFS		463		170
Purchase accounting fair value adjustments		379		727
Organizational costs		12		63
Total deferred tax assets		13,849		9,774
Deferred tax liabilities:
Deferred fees and costs		(4,383)		(2,718)
Operating lease asset		(3,118)		—
Depreciation		(1,354)		(951)
Unrealized gain on derivatives		(97)		—
Mortgage servicing rights		(14)		(15)
Other		(149)		(158)
Total deferred tax liabilities		(9,115)		(3,842)
Total		4,734		5,932
Valuation allowance		(3,225)		(3,424)
Net deferred tax asset	$	1,509	$	2,508