0001558370-22-018947 | 10-K | XBRL Viewer

Print Document View Excel Document

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Sep. 30, 2022	Dec. 20, 2022	Mar. 31, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Period End Date	Sep. 30, 2022
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Document Transition Report	false
Entity File Number	001-41384
Entity Registrant Name	Hanover Bancorp, Inc. /NY
Entity Central Index Key	0001828588
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	81-3324480
Entity Address, Address Line One	80 East Jericho Turnpike
Entity Address, City or Town	Mineola
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11501
City Area Code	516
Local Phone Number	548-8500
Title of 12(b) Security	Common stock
Trading Symbol	HNVR
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 83,746,668
Entity Common Stock, Shares Outstanding		7,149,000
Auditor Name	Crowe LLP
Auditor Firm ID	173
Auditor Location	Livingston, New Jersey

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
ASSETS
Cash and non-interest-bearing deposits due from banks	$ 9,934	$ 8,302
Interest-bearing deposits due from banks	139,559	142,950
Federal funds sold	454	15,292
Total cash and cash equivalents	149,947	166,544
Securities:
Held to maturity (fair value of $4,095 and $8,865, respectively)	4,414	8,611
Available for sale, at fair value	12,285	7,747
Total securities	16,699	16,358
Loans held for investment	1,623,531	1,247,125
Allowance for loan losses	(12,844)	(8,552)
Loans held for investment, net	1,610,687	1,238,573
Premises and equipment, net	14,462	15,003
Accrued interest receivable	8,546	9,363
Prepaid pension	3,444	4,233
Stock in Federal Home Loan Bank ("FHLB"), at cost	6,280	3,714
Goodwill	19,168	19,168
Other intangible assets	399	480
Loan servicing rights	4,353	3,690
Deferred income taxes	2,508	3,558
Other assets	3,565	3,957
TOTAL ASSETS	1,840,058	1,484,641
Deposits:
Non-interest-bearing demand	219,225	191,537
Savings, NOW and money market	969,808	595,289
Time	339,073	377,836
Total deposits	1,528,106	1,164,662
Borrowings	101,752	159,642
Subordinated debentures	24,568	24,513
Accrued interest payable	915	1,290
Other liabilities	12,133	12,005
TOTAL LIABILITIES	1,667,474	1,362,112
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY
Preferred stock (par value $0.01; 15,000,000 shares authorized; none issued)	0	0
Common stock (par value $0.01; 17,000,000 shares authorized; issued and outstanding 7,285,648 and 5,563,426, respectively)	73	56
Surplus	126,656	97,246
Retained earnings	46,475	24,971
Accumulated other comprehensive (loss) income, net of tax	(620)	256
TOTAL STOCKHOLDERS' EQUITY	172,584	122,529
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,840,058	$ 1,484,641

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Securities:
Held to maturity, fair value	$ 4,095	$ 8,865
STOCKHOLDERS' EQUITY
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	17,000,000	17,000,000
Common stock, shares issued (in shares)	7,285,648	5,563,426
Common stock, shares outstanding (in shares)	7,285,648	5,563,426

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
INTEREST INCOME
Loans	$ 67,005	$ 47,685
Taxable securities	484	685
Other interest income	940	305
Total interest income	68,429	48,675
INTEREST EXPENSE
Savings, NOW and money market deposits	3,166	903
Time deposits	2,209	3,822
Borrowings	1,800	2,242
Total interest expense	7,175	6,967
Net interest income	61,254	41,708
Provision for loan losses	4,450	1,000
Net interest income after provision for loan losses	56,804	40,708
NON-INTEREST INCOME
Loan servicing and fee income	2,885	1,207
Service charges on deposit accounts	232	127
Gain on sale of loans held-for-sale	5,143	1,307
Gain on sale of securities available-for-sale	105	240
Other income	507	468
Total non-interest income	8,872	3,349
NON-INTEREST EXPENSE
Salaries and employee benefits	19,665	14,761
Occupancy and equipment	5,633	4,978
Data processing	1,629	1,280
Advertising and promotion	348	118
Acquisition costs	250	4,430
Professional fees	2,568	1,706
Other expenses	5,088	2,732
Total non-interest expense	35,181	30,005
Income before income tax expense	30,495	14,052
Income tax expense	6,939	3,201
NET INCOME	$ 23,556	$ 10,851
Earnings per common share:
EARNINGS PER COMMON SHARE - BASIC (in dollars per share)	$ 3.74	$ 2.32
EARNINGS PER COMMON SHARE - DILUTED (in dollars per share)	$ 3.68	$ 2.28

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 23,556	$ 10,851
Other comprehensive (loss) income, net of tax:
Change in unrealized (loss) gain on securities available for sale arising during the period, net of tax of ($215) and $77, respectively	(795)	291
Reclassification adjustment for gains realized in net income, net of tax of $24 and $49 respectively	(81)	(191)
Total other comprehensive (loss) income, net of tax	(876)	100
Total comprehensive income, net of tax	$ 22,680	$ 10,951

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 6
-URI https://asc.fasb.org/extlink&oid=124431353&loc=SL124452729-227067

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI https://asc.fasb.org/extlink&oid=126954810&loc=d3e3602-108585

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669619-108580

Reference 25: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669625-108580

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 35: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

+ Details

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Other comprehensive (loss) income, net of tax:
Change in unrealized (loss) gain on investment securities available for sale, tax	$ (215)	$ 77
Reclassification adjustment for gains realized in net income, tax	$ 24	$ 49

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Surplus	Retained Earnings	Accumulated Other Comprehensive (Loss) Income, Net	Total
Balance at Sep. 30, 2020	$ 42	$ 63,725	$ 14,120	$ 156	$ 78,043
Balance (in shares) at Sep. 30, 2020	4,175,144
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			10,851		10,851
Other comprehensive income (loss), net of tax				100	100
Stock-based compensation		901			901
Stock-based compensation (in shares)	25,588
Common stock issued in purchase of Savoy Bank	$ 14	31,238			31,252
Common stock issued in purchase of Savoy Bank (in shares)	1,357,567
Savoy Bank acquisition rollover options		1,269			1,269
Issuance of common stock		113			113
Issuance of common stock (in shares)	5,127
Balance at Sep. 30, 2021	$ 56	97,246	24,971	256	122,529
Balance (in shares) at Sep. 30, 2021	5,563,426
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			23,556		23,556
Other comprehensive income (loss), net of tax				(876)	(876)
Issuance of common stock in lieu of directors' fees		42			42
Issuance of common stock in lieu of directors' fees (in shares)	2,384
Cash dividends paid			(2,052)		(2,052)
Stock-based compensation		1,684			1,684
Stock awards granted, net of forfeitures	$ 2	(2)
Stock awards granted, net of forfeitures (in shares)	254,265
Shares received related to tax withholding		(28)			(28)
Shares received related to tax withholding (in shares)	(677)
Issuance of common stock	$ 15	27,714			27,729
Issuance of common stock (in shares)	1,466,250
Balance at Sep. 30, 2022	$ 73	$ 126,656	$ 46,475	$ (620)	$ 172,584
Balance (in shares) at Sep. 30, 2022	7,285,648

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical)	12 Months Ended
	Sep. 30, 2022 $ / shares
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Cash dividends declared (in dollars per share)	$ 0.10

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 23,556	$ 10,851
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	4,450	1,000
Depreciation and amortization	1,663	1,444
Net gain on sale of securities available-for-sale	(105)	(240)
Stock-based compensation	1,684	901
Net gain on sale of loans held-for-sale	(5,143)	(1,307)
Net accretion of premiums, discounts and loan fees and costs	(3,570)	(3,604)
Amortization of intangible assets	81	32
Amortization of debt issuance costs	55	72
Loan servicing rights valuation adjustments	495	251
Deferred tax expense	1,318	365
Decrease in accrued interest receivable	817	1,924
(Increase) decrease in other assets	(5)	1,398
Decrease in accrued interest payable	(375)	(134)
Increase in other liabilities	128	239
Net cash provided by operating activities	25,049	13,192
Cash flows from investing activities:
Purchases of securities available-for-sale	(8,000)	(4,700)
Purchases of restricted securities	(7,132)	(494)
Proceeds from sales of securities available-for-sale	2,105	3,240
Principal repayments of securities held to maturity	4,191	2,100
Principal repayments of securities available-for-sale	335	338
Redemptions of restricted securities	4,566	1,645
Proceeds from sales of loans	85,420	46,640
Net (increase) decrease in loans	(454,509)	16,996
Purchases of premises and equipment	(1,122)	(2,079)
Cash acquired in business combination	0	59,155
Cash consideration paid in acquisition	0	(32,991)
Net cash (used in) provided by investing activities	(374,146)	89,850
Cash flows from financing activities:
Net increase in deposits	364,519	157,725
Advances of term and overnight FHLB borrowings	75,000	0
Repayments of FHLB advances	(24,000)	(34,758)
Repayments of Federal Reserve Bank borrowings	(108,710)	(149,242)
Proceeds from issuance of subordinated debentures, net of issuance costs	0	24,455
Repayment of note payable	0	(15,000)
Payments related to tax withholding for equity awards	(28)	0
Cash dividends paid	(2,052)	0
Net proceeds from issuance of common stock	27,771	113
Net cash provided by (used in) financing activities	332,500	(16,707)
(Decrease) increase in cash and cash equivalents	(16,597)	86,335
Cash and cash equivalents, beginning of period	166,544	80,209
Cash and cash equivalents, end of period	149,947	166,544
Supplemental cash flow information:
Interest paid	7,550	7,101
Income taxes paid	6,466	1,375
Supplemental non-cash disclosure:
Transfers from portfolio loans to loans held-for-sale	80,277	47,826
Transfers from loans held-for-sale to portfolio loans	0	2,493
Business combination:
Fair value of tangible assets acquired	0	653,380
Fair value of liabilities assumed	0	605,815
Common stock issued in business combination	$ 0	$ 31,252

Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2022

Summary of Significant Accounting Policies.

Summary of Significant Accounting Policies

HANOVER BANCORP, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Summary of Significant Accounting Policies

Nature of Operations

Hanover Bancorp, Inc. (the “Company”) is a New York corporation which became the holding company for Hanover Community Bank (the “Bank”) in 2016. The Bank, headquartered in Mineola, New York, is a New York State chartered bank. The Bank commenced operations on November 4, 2008 and is a full-service bank providing personal and business lending and deposit services. As a New York State chartered, non-Federal Reserve member bank, the Bank is subject to regulation by the New York State Department of Financial Services (“DFS”) and the Federal Deposit Insurance Corporation. The Company is subject to regulation and examination by the Board of Governors of the FRB.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

Certain prior period amounts have been reclassified to conform to the current year’s presentation. These reclassifications had an immaterial effect on the Company’s consolidated financial statements.

Use of Estimates

In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Risks and Uncertainties

In March 2020, the World Health Organization declared the outbreak of COVID-19 a global pandemic. The COVID-19 pandemic has adversely affected, local, national and global economic activity. Various actions taken to help mitigate the spread of COVID-19 included restrictions on travel, quarantines and government mandated closures of various businesses. The outbreak caused significant disruptions to the economy and disrupted banking and other financial activity in the areas in which the Company operates.

The CARES Act was enacted in March 2020 to, among other things, provide emergency assistance to individuals, families and businesses affected by the COVID-19 pandemic. The ongoing effects of the COVID-19 pandemic may materially and adversely affect the Company’s financial condition and results of operations in future periods, and it is unknown what the complete financial impact will be to the Company. The extent of such impact will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the coronavirus, the new “waves” of COVID-19 infections, the spread of new variants of the virus and the distribution of vaccines and vaccination rates, among others. It is possible that estimates made in the financial statements could be materially and adversely impacted due to these conditions. The CARES Act expired on December 31, 2021.

Significant Group Concentrations of Credit Risk

Most of the Company’s activities are with customers located in Nassau, Queens and Kings Counties and surrounding areas of New York State. Note 4 discusses the types of lending that the Company engages in. Although the Company has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced by the region’s economy. The Company does not have any significant concentrations to any one industry or customer.

Business Combinations

The Company accounts for its business combinations using the acquisition method of accounting. This method requires the use of fair values in determining the carrying values of the purchased assets and assumed liabilities, which are recorded at fair value at acquisition date, and identifiable intangible assets are recorded at fair value. Costs directly related to the business combinations are recorded as expenses as they are incurred. Fair values are subject to adjustment for up to one year after the closing date of an acquisition as additional information relative to closing date fair values become available.

Cash and Cash Equivalents

For purposes of reporting consolidated cash flows, cash and due from banks includes cash on hand, cash items in process of collection and amounts due from banks. Cash and cash equivalents also include interest-bearing deposits in banks and federal funds sold. Interest-bearing deposits in other financial institutions mature within 90 days and are carried at cost. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings with original maturities of 90 days or less.

Restrictions on Cash

Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements.

Investment Securities

Investment securities are classified as held-to-maturity or available-for-sale at the time of purchase. Investment securities classified as held-to-maturity, which management has the positive intent and ability to hold to maturity, are reported at amortized cost. Investment securities classified as available for sale, which management has the intent and ability to hold for an indefinite period of time, but not necessarily to maturity, are carried at fair value, with unrealized gains and losses, net of related deferred income taxes, included in stockholders’ equity as a separate component of other comprehensive income. Any decision to sell investment securities available for sale would be based on various factors, including, but not limited to, asset / liability management strategies, changes in interest rates or prepayment risks, liquidity needs, or regulatory capital considerations.

Premiums are amortized and discounts accreted using the interest method over the remaining terms of the related securities. Dividend and interest income are recognized when earned. Sales of investment securities are recorded at trade date, with realized gains and losses on sales determined using the specific identification method and included in non-interest income.

The Company evaluates securities for other-than-temporary impairment ("OTTI") on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, the Company considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. The Company also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis.

Federal Home Loan Bank Stock

As a member of the FHLB of New York, the Company is required to maintain an investment in the stock of the FHLB based upon the amount of outstanding FHLB borrowings. This stock does not have a readily determinable fair value and is carried at cost.

Loans Held for Sale

Loans held for sale are carried at the lower of cost or estimated fair value in the aggregate as determined by outstanding commitments from investors. Gains or losses on loan sales are recognized at the time of sale and are determined by the difference between net sales proceeds and the principal balance of the loans sold, adjusted for net deferred loan fees or costs. Loan origination and commitment fees, net of certain direct loan origination costs, are deferred as an adjustment to the carrying value of the loan until it is sold.

Loans and Loan Interest Income Recognition

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff, are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs, and an allowance for loan losses. The loan portfolio is segmented into residential real estate, commercial real estate, multifamily, commercial and industrial, construction, and consumer loans.

Interest income on loans is accrued and credited to income as earned. Net loan origination fees and costs are deferred and accreted/amortized to interest income over the loan’s contractual life using the level-yield method, adjusted for actual prepayments.

Acquired loans are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date.

Acquired loans are evaluated upon acquisition and classified as either purchased credit impaired or purchased non-impaired. Purchased credit impaired loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. For purchased credit impaired loans, expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the remaining life of the loans (accretable yield) using a level yield method if the timing and amount of the future cash flows is reasonably estimable. The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Subsequent to the acquisition date, increases in cash flows over those expected at the acquisition date are recognized prospectively as interest income. Decreases in expected cash flows after the acquisition date are recognized immediately through the provision for loan losses. For purchased non-impaired loans, the difference between the fair value and unpaid principal balance of the loan at the acquisition date is amortized or accreted to interest income over the economic life of the loans using a method that approximates the interest method.

Lending Risk

The principal business of the Bank is lending in one-to-four family residential mortgage loans, commercial real estate mortgage loans, multi-family mortgage loans, commercial and industrial loans and consumer loans. The Bank considers its primary lending area to be Nassau County and the New York City boroughs. A substantial portion of the Bank’s loans is secured by real estate in these areas. Accordingly, the ultimate collectability of the loan portfolio is susceptible to changes in market and economic conditions in this region.

One-to-four family residential mortgage loans involve certain risks such as interest rate risk and risk of nonpayment. Adjustable-rate loans decrease the interest rate risk to the Company that is associated with changes in interest rates but involve other risks, primarily because as interest rates rise, the payment by the borrower rises to the extent permitted by the terms of the loan, thereby increasing the potential for default. At the same time, the marketability of the underlying property may be adversely affected by higher interest rates. Repayment risk can be affected by the overall health of the economy, including unemployment rates and housing prices.

Commercial real estate lending entails significant additional risks as compared with single-family residential property lending. Such loans typically involve large loan balances to single borrowers or groups of related borrowers. Loans in this classification include income producing investment properties and owner-occupied real estate used for

business purposes. The underlying properties are located largely in the Bank’s primary market area. The cash flows of the income producing investment properties could be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, could have an effect on credit quality. In the case of owner-occupied real estate used for business purposes, a weakened economy and resultant decreased consumer and/or business spending could have an adverse effect on credit quality.

Multifamily lending entails additional risks as compared with single-family residential property lending, but less when compared to commercial real estate lending. Loans in this classification include income producing residential investment properties of five or more families. Loans are made to established owners with a proven and demonstrable record of strong performance. Loans are secured by a first mortgage lien on the subject property. Repayment is derived generally from the rental income generated from the property and may be supplemented by the owners’ personal cash flow. Credit risk arises with changes in economic conditions that could cause an increase in vacancy rates.

Commercial and industrial lending is generally considered higher risk due to the concentration of principal in a limited number of loans and borrowers and the effects of general economic conditions on the business. Generally, these loans are primarily secured by inventories and other assets of the business and repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and/or business spending, will have an effect on the credit quality in this loan class.

The Company’s construction loan portfolio covers the development of commercial properties. Construction loans involve the disbursement of funds during construction with repayment substantially dependent on the success of the ultimate project. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans because their ultimate repayment depends on the satisfactory completion of construction and is sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. Repayment is dependent on completion of the project and the subsequent financing of the completed project as a commercial real estate loan, and in some instances on the rent or sale of the underlying project.

Consumer loans generally have shorter terms and higher interest rates than other lending but generally involve more credit risk because of the type and nature of the collateral and, in certain cases, the absence of collateral. Repayment is dependent on the credit quality of the individual borrower and, if applicable, sale of the collateral securing the loan. Therefore, the overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this loan class.

Allowance for Loan Losses

A loan is considered past due when it is not paid in accordance with its contractual terms. The accrual of income on loans, including impaired loans, and other loans in the process of foreclosure, is generally discontinued when a loan becomes 90 days or more delinquent, or when certain factors indicate that the ultimate collection of principal and interest is in doubt. Loans on which the accrual of income has been discontinued are designated as non-accrual loans. All previously accrued interest is reversed against interest income, and income is recognized subsequently only in the period that cash is received, provided no principal payments are due and the remaining principal balance outstanding is deemed collectible. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

The Company defines an impaired loan as a loan for which it is probable, based on current information, that the Company will not collect all amounts due in accordance with the contractual terms of the loan agreement. The Company has defined the population of impaired loans to be all non-accrual loans, loans risk rated 9 (Doubtful) or 10 (Loss), and all loans subject to a troubled debt restructuring (“TDR”). Impaired loans are individually assessed to determine that the loan’s carrying value is not in excess of the expected future cash flows, discounted at the loan’s original effective interest rate, or the underlying collateral (less estimated costs to sell) if the loan is collateral dependent. Impairments are recognized through a charge to the allowance for loan losses for the amount that the loan’s carrying value exceeds the discounted cash flow analysis or estimated fair value of collateral (less estimated costs to sell) if the loan is collateral dependent.

The allowance for loan losses is increased by the provision for loan losses charged against income and is decreased by charge-offs, net of recoveries. Loan losses are recognized in the period the loans, or portion thereof, are deemed uncollectible. Generally, the Company will record a loan charge-off (including a partial charge-off) to reduce a loan to the estimated fair value of the underlying collateral, less costs to sell, if it is determined that it is probable that recovery will come primarily from the sale of such collateral. The provision for loan losses is based on management’s evaluation of the adequacy of the allowance which considers, among other things, impaired loans, past loan loss experience, known and inherent risks in the portfolio, existing adverse situations that may affect the borrower’s ability to repay, and estimated fair value of any underlying collateral securing loans. Additionally, management evaluates changes, if any, in underwriting standards, collection, charge-off and recovery practices, the nature or volume of the portfolio, lending staff, concentration of loans, as well as current economic conditions, and other relevant factors. Management believes the allowance for loan losses is adequate to provide for probable and reasonably estimable losses at the statement of condition date.

The allowance for loan losses consists of the following components:

Specific allowances are established for impaired loans, generally defined by the Company to be all nonaccrual loans, loans risk rated 8 (Substandard), 9 (Doubtful) or 10 (Loss), and all loans subject to a TDR. The amount of impairment provided for as an allowance is represented by the deficiency, if any, between the present value of expected future cash flows discounted at the original loan’s effective interest rate or the underlying collateral value (less estimated costs to sell) if the loan is collateral dependent, and the carrying value of the loan. Impaired loans that have no impairment losses are not considered for general valuation allowances described below.

General allowances are established for loan losses on a portfolio basis for loans that do not meet the definition of impaired. The portfolio is grouped into similar risk characteristics, primarily by loan segment and internal credit risk ratings. Historical loss experience is applied to each loan group using a three-year lookback period. The loss experience is adjusted, as appropriate, for the environmental factors discussed below. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and market conditions. Actual loan losses may be significantly more than the allowance for loan losses we have established, which could have a material negative effect on the Company’s financial results.

In underwriting a loan secured by real property, the Company requires an appraisal (or an automated valuation model) of the property by an independent licensed appraiser approved by the Company’s Board of Directors. The appraisal is subject to review by an independent third party hired by the Company. Management reviews and inspects properties before disbursement of funds during the term of a construction loan. Generally, management obtains updated appraisals when a loan is deemed impaired. These appraisals may be more limited than those prepared for the underwriting of a new loan. In addition, when the Company acquires other real estate owned, it generally obtains a current appraisal to substantiate the net carrying value of the asset at the time of foreclosure.

As noted above, the adjustments to the Company’s loss experience is based on management’s evaluation of several environmental factors, including:

●

changes in local, regional, national, and international economic and business conditions and developments that affect the collectability of the loan portfolio, including the condition of various market segments;

●

changes in the nature and volume of the Company’s portfolio and in the terms of the Company’s loans;

●

changes in the experience, ability, and depth of lending management and other relevant staff;

●

changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans;

●

changes in the quality of the Company’s loan review system;

●

changes in lending policies, procedures and strategies;

●

changes in the value of underlying collateral for collateral-dependent loans;

●

the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and

●

the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing portfolio.

While management uses available information to recognize probable and reasonably estimable losses on loans, future additions to the allowance may be necessary based upon changes in economic, market or other conditions. Changes in estimates could result in a material change in the allowance. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination.

A loan modification is deemed a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty; and 2) a concession is made by the Company that would not otherwise be considered for a borrower or collateral with similar credit risk characteristics. Once an obligation has been restructured, it continues to be considered restructured until paid in full or otherwise settled, sold or charged off. The Company records an impairment charge equal to the difference between the present value of estimated future cash flows under the restructured terms discounted at the original loan’s effective interest rate, or the underlying collateral value less costs to sell, if the loan is collateral dependent.

The allowance for loan and lease losses related to purchased credit impaired loans is based on an analysis that is performed each period to estimate the expected cash flows for each of the loan pools. To the extent that the expected cash flows of a loan pool have decreased since the acquisition date, the Company establishes an allowance for loan losses.

Loan Modifications Under the CARES Act

On March 27, 2020, the President of the United States signed the CARES Act, which provides entities with optional temporary relief from certain accounting and financial reporting requirements under GAAP.

The CARES Act allows financial institutions to suspend application of certain current TDR accounting guidance under ASC 310-40 for loan modifications related to the COVID-19 pandemic made between March 1, 2020 and the earlier of December 31, 2021 or 60 days after the end of the COVID-19 national emergency, provided certain criteria are met. This relief can be applied to loan modifications for borrowers that were not more than 30 days past due as of December 31, 2019 and to loan modifications that defer or delay the payment of principal or interest or change the interest rate on the loan. In April 2020, federal banking regulators issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus to provide further interpretation of when a borrower is experiencing financial difficulty, specifically indicating that if the modification is either short-term (e.g., six months) or mandated by a federal or state government in response to the COVID-19 pandemic, the borrower is not experiencing financial difficulty under ASC 310-40. The Company continues to prudently work with borrowers negatively impacted by the COVID-19 pandemic while managing credit risks and recognizing an appropriate allowance for loan and lease losses on its loan portfolio. The Company approved total loan modifications under the CARES Act of $220.4 million, of which $283 thousand and $19.5 million remain as of September 30, 2022 and 2021, respectively.

Servicing Rights

The Company originates and sells mortgage loans in the secondary market and may retain the servicing of these loans. When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.

Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion

of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported within non-interest expense on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Fees earned for servicing loans are reported on the statements of income as loan servicing income when the related mortgage loan payments are collected. The amortization of loan servicing rights is netted against loan servicing fee income. Servicing fees totaled $1.6 million and $0.6 million for the years ended September 30, 2022 and 2021, respectively. Late fees and ancillary fees related to loan servicing are not material.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Premises and Equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization. Land is carried at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets, which are 39 years for buildings and two to 10 years for furniture, fixtures and equipment. Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Repairs and maintenance costs are recorded as a component of non-interest expense as incurred.

Goodwill and Other Intangible Assets

Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized but tested for impairment at least annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. The Company has selected August 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the balance sheet.

Other intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Core deposit intangible assets are amortized on an accelerated method over their estimated useful life of 10 years.

Debt Issuance Costs

The costs attributable to issuing a debt instrument are reported on the Consolidated Statements of Financial Condition as a deduction from the face amount of the note and amortized as interest expense over the term of the note.

Earnings Per Share (“EPS”)

Basic EPS is net income attributable to common shareholders divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted EPS includes the dilutive effect of additional potential common shares issuable under stock options. Potentially dilutive common shares are excluded from the computation of dilutive EPS in the periods in which the effect would be anti-dilutive.

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale which are also recognized as separate components of stockholders’ equity.

Income Taxes

Income tax expense is comprised of two components, current and deferred. The current component reflects taxes payable or refundable for a current period based on applicable tax laws, and the deferred component represents the tax effects of temporary differences between amounts recognized for financial accounting and tax purposes. Deferred tax assets and liabilities reflect the tax effects of such differences that are anticipated to result in taxable or deductible amounts in the future, when the temporary differences reverse. Deferred tax assets are recognized if it is more likely than not they will be realized, and may be reduced by a valuation allowance if it is more likely than not that all or some portion will not be realized.

Tax positions that are uncertain but meet a more likely than not recognition threshold are initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position meets the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment.

The Company recognizes interest expense and penalties on uncertain tax positions as a component of income tax expense and recognizes interest income on refundable income taxes as a component of other non-interest income.

Fair Value Measurements

The Company measures certain assets and liabilities on a fair value basis, in accordance with Accounting Standards Codification (ASC) Topic 820, "Fair Value Measurement." Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 15. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Revenue From Contracts With Customers

Revenue from contracts with customers generally comprises deposit service fees, which are included as a component of other non-interest income in the accompanying Consolidated Statements of Income. The Company identifies the performance obligations included in the contracts with customers, determines the transaction price, allocates the transaction price to the performance obligations, as applicable, and recognizes revenue when performance obligations are satisfied, which is generally at the point services are performed for the customer.

Operating Segments

While management monitors the revenue streams of the Company’s various products and services, the identifiable segments are not material and operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all the financial service operations are considered by management to be aggregated in one reportable operating segment.

Stock Compensation Plans

Compensation cost is recognized for stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) issued to employees and directors based upon the fair value of these awards at the date of grant. A Black-Scholes

model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used to estimate the fair value for RSAs and RSUs.

Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s accounting policy is to recognize forfeitures as they occur.

Supplemental Executive Retirement Plan

In connection with the previous acquisition of Chinatown Federal Savings Bank (“CFSB”), the assets of the CFSB Supplemental Executive Retirement Plan (“CFSB SERP”) are included in the Consolidated Statements of Financial Condition. The CFSB SERP provides benefits to two former executives of CFSB and the assets of the CFSB SERP are held in a Rabbi Trust which was fully funded prior to the acquisition of CFSB by the Company. The Company has no further liability or obligation with respect to the CFSB SERP assets other than record keeping. No ongoing valuation of the assets will be obtained and the amount of plan assets will continue to be equal to the liability reflected on the Consolidated Statement of Financial Condition. The SERP liability is included in other liabilities on the Consolidated Statement of Financial Condition.

Recent Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases. The amendments in this update primarily replace the existing accounting requirements for operating leases for lessees. Lessee accounting requirements for finance leases and lessor accounting requirements for operating leases and sales type and direct financing leases (sales-type and direct financing leases were both previously referred to as capital leases) are largely unchanged. The amendments require the lessee of an operating lease to record a balance sheet gross-up upon lease commencement by recognizing a right-of-use asset and lease liability equal to the present value of the lease payments. The right-of-use asset and lease liability should be derecognized in a manner that effectively yields a straight-line lease expense over the lease term. In addition to the changes to the lessee operating lease accounting requirements, the amendments also change the types of costs that can be capitalized related to a lease agreement for both lessees and lessors. The amendments also require additional disclosures for all lease types for both lessees and lessors. The FASB has subsequently issued additional ASUs intended to clarify guidance, provide implementation support, and provide an additional transition election. The amendments are effective on October 1, 2022, with early adoption permitted. The amendments must be applied on a modified retrospective basis. The Company adopted Topic 842 in the first fiscal quarter of 2023. The Company elected the transition option that will allow us to record a cumulative adjustment at the beginning of the period of adoption on October 1, 2022. The effect of adopting this standard was an approximate $10 million increase in assets and liabilities in the Company’s Consolidated Statements of Financial Condition as a result of recognizing right-of-use assets and lease liabilities.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The amendments introduce an impairment model that is based on current expected credit losses, rather than incurred losses, to estimate credit losses on certain types of financial instruments (i.e. loans and held to maturity securities), including certain off-balance sheet financial instruments (i.e. commitments to extend credit and standby letters of credit that are not unconditionally cancellable). The CECL should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments, over the contractual term. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Financial instruments with similar risk characteristics may be grouped together when estimating credit losses. The allowance for credit losses for purchased financial assets with a more-than- insignificant amount of credit deterioration since origination that are measured at amortized cost basis is determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial estimate of expected credit loss would be recognized through an allowance for credit losses with an offset (i.e. increase) to the purchase price at acquisition. Only subsequent changes in the allowance for credit losses are recorded as provision for loan losses for these assets. The ASU also amends the current available for sale security impairment model for debt securities whereby credit losses relating to available for sale debt securities should be recorded through an allowance for credit losses. The amendments will be applied through a modified retrospective approach, resulting in a cumulative-effect adjustment to retained earnings as of

the beginning of the first reporting period in which the guidance is effective. As the Company is a smaller-reporting company under SEC regulations, the Company will adopt CECL on October 1, 2023. The Company is currently evaluating the potential impact the adoption of this ASU will have on its consolidated financial statements.

In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The ASU made certain targeted amendments specific to troubled debt restructurings (TDRs) by creditors and vintage disclosure related to gross write-offs. Upon adoption, the Company will be required to apply the loan and refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan, rather than applying the recognition and measurement guidance for TDRs. The ASU also requires companies to disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within scope of Subtopic 326-20. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 for entities that have adopted ASU 2016-13, otherwise effective date is the same as ASU 2016-13. The Company will adopt ASU 2016-13 effective October 1, 2023 and will simultaneously implement ASU 2022-02.

Business Combinations

12 Months Ended

Sep. 30, 2022

Business Combinations

Business Combinations

Note 2. Business Combinations

On May 26, 2021, the Company completed its previously announced acquisition of Savoy Bank pursuant to an Agreement and Plan of Merger (the “Merger Agreement”), dated as of August 27, 2020, as amended, between the Company, the Bank and Savoy. Pursuant to the Merger Agreement, Savoy was merged with and into the Bank, with the Bank surviving, in a two-step transaction (collectively, the “Merger”).

The purchase price in the transaction was based upon the tangible book values of each of the Company and Savoy as of April 30, 2021 and calculated in accordance with the terms of the Merger Agreement. At the effective time of the Merger, each share of Savoy common stock, $1.00 par value (“Savoy Common Stock”) was converted into the right to receive (i) $3.246 in cash and (ii) 0.141 shares of the Company’s common stock. The final aggregate purchase price was $65.5 million, or $6.49 per Savoy share.

A final summary of the fair value of assets received and liabilities assumed are as follows:


	As Recorded		Fair Value			As Recorded
(in thousands)	by Savoy		Adjustments			by Hanover
Assets
Cash and due from banks	$	59,155	$	—		$	59,155
Investment securities available-for-sale		239		—			239
Loans held for sale		3,883		—			3,883
Loans held for investment		569,251		8,612	(a)		577,863
Premises and equipment, net		234		(22)	(b)		212
Core deposit intangible		—		490	(c)		490
Accrued interest receivable		5,171		(650)	(d)		4,521
Other assets		10,432		(2,925)	(e)		7,507
Total assets acquired	$	648,365	$	5,505			653,870
Liabilities
Deposits	$	340,215	$	2,527	(f)		342,742
Borrowings		258,247		301	(g)		258,548
Accrued interest payable		1,050		—			1,050
Other liabilities and accrued expenses		3,817		(342)	(h)		3,475
Total liabilities assumed	$	603,329	$	2,486			605,815
Net assets acquired							48,055
Total consideration							65,512
Goodwill						$	17,457

(a)	Represents the fair value adjustments on net book value of loans, which includes an interest rate mark and credit mark adjustment, the write-off of deferred fees/costs and premiums and the elimination of Savoy’s allowance for loan losses.

(b)	Represents the fair value adjustments to reflect the fair value of premises and equipment.

(c)	Represents the fair value of core deposit intangible recorded, which is amortized on an accelerated basis over the estimated average life of the deposit base.

(d)	Represents an adjustment to accrued interest receivable acquired.

(e)	Represents an adjustment to other assets acquired. The largest adjustment was the net deferred tax assets resulting from the fair value adjustment related to the acquired assets, liabilities assumed and identifiable intangible assets recorded.

(f)	Represents the fair value adjustments on time deposits, which is treated as a reduction of interest expense over the remaining term of the time deposits.

(g)	Represents the fair value adjustments on an FHLB borrowing, which is treated as a reduction to interest expense over the life of the borrowing.

(h)	Represents an adjustment to other liabilities assumed.

A summary of total consideration paid is as follows:


(in thousands, except share data)
Common stock issued (1,357,567 shares issued)	$	31,252
Rollover options		1,269
Cash payments to common shareholders		32,991
Total consideration paid	$	65,512

With the Savoy acquisition, the Company significantly expanded its commercial banking and SBA lending capabilities. None of the goodwill associated with this acquisition is deductible for income tax purposes. All goodwill related to this acquisition was allocated to the Company’s only reporting unit, which is the Company as a whole.

The Company engaged a third-party specialist to develop the fair value estimate of Savoy’s loan portfolio as of the acquisition date in accordance with ASC 820. Inputs and assumptions used in the fair value estimate of the loan portfolio, include interest rate, servicing, credit and liquidity risk, and required equity return. The fair value of loans was calculated using a discounted cash flow analysis based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. There was no carryover of Savoy’s allowance for loan losses associated with the loans that were acquired, as the loans were initially recorded at fair value as of the acquisition date.

The core deposit intangible asset recognized is being amortized over its estimated useful life of approximately 10 years and the amortization is based on dollar weighted deposit runoff on an annualized basis.

The fair value of retail demand and interest-bearing deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities.

Other borrowed funds include a borrowing from the FHLB. The fair value of this borrowing was estimated by discounting the contractual future cash flows using FHLB rates offered of similar maturities.

During the fiscal fourth quarter of 2021, the Company revised its initial estimates and assumptions regarding the valuation of acquired deferred tax assets. Because such revision occurred during the first 12 months following the date of acquisition and was not the result of an event that occurred subsequent to the acquisition date, the Company has increased goodwill recorded by $1.1 million to reflect this change in estimate.

Acquisition costs are expensed as incurred as a component of non-interest expense and primarily include, but are not limited to, severance costs, professional services, data processing fees, and marketing and advertising expenses. The Company incurred total acquisition costs of $250 thousand and $4.4 million during the years ended September 30, 2022 and 2021, respectively.

The Company has determined the above noted acquisition constitutes a business combination as defined by ASC Topic 805, which establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired and the liabilities assumed. The Company has recorded the assets purchased and liabilities assumed at their estimated fair value in accordance with ASC Topic 805.

The following is a summary of the loans accounted for in accordance with ASC 310-30 that were acquired in the Savoy acquisition as of the merger date:


(in thousands)
Contractually required principal and interest at acquisition	$	14,416
Contractual cash flows not expected to be collected (non-accretable discount)		(3,467)
Expected cash flows at acquisition		10,949
Interest component of expected cash flows (accretable discount)		(540)
Fair value of acquired purchased credit impaired loans	$	10,409

Investment Securities

12 Months Ended

Sep. 30, 2022

Investment Securities

Investment Securities

Note 3. Investment Securities

The following table summarizes the amortized cost and fair value of securities available for sale and securities held to maturity at September 30, 2022 and 2021 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income:


	September 30, 2022
	Amortized		Gross Unrealized		Gross Unrealized
(in thousands)	Cost		Gains		Losses		Fair Value
Available for sale:
U.S. GSE residential mortgage-backed securities	$	375	$	—	$	(133)	$	242
Corporate bonds		12,700		—		(657)		12,043
Total available for sale securities	$	13,075	$	—	$	(790)	$	12,285

Held to maturity:
U.S. GSE residential mortgage-backed securities	$	1,778	$	—	$	(160)	$	1,618
U.S. GSE commercial mortgage-backed securities		2,636		—		(159)		2,477
Total held to maturity securities		4,414		—		(319)		4,095
Total investment securities	$	17,489	$	—	$	(1,109)	$	16,380


	September 30, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized
(in thousands)	Cost		Gains		Losses		Fair Value
Available for sale:
U.S. GSE residential mortgage-backed securities	$	722	$	112	$	(1)	$	833
Corporate bonds		6,700		214		—		6,914
Total available for sale securities	$	7,422	$	326	$	(1)	$	7,747

Held to maturity:
U.S. GSE residential mortgage-backed securities	$	2,417	$	74	$	—	$	2,491
U.S. GSE commercial mortgage-backed securities		2,694		175		—		2,869
Corporate bonds		3,500		9		(4)		3,505
Total held to maturity securities		8,611		258		(4)		8,865
Total investment securities	$	16,033	$	584	$	(5)	$	16,612

The amortized cost and fair value of investment securities at September 30, 2022, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single date are shown separately.


	September 30, 2022
	Amortized		Fair
(in thousands)	Cost		Value
Securities available for sale:
Five to ten years	$	12,700	$	12,043
U.S. GSE residential mortgage-backed securities		375		242
Total securities available for sale		13,075		12,285
Securities held to maturity:
One to five years		—		—
Five to ten years		—		—
U.S. GSE residential mortgage-backed securities		1,778		1,618
U.S. GSE commercial mortgage-backed securities		2,636		2,477
Total securities held to maturity		4,414		4,095
Total investment securities	$	17,489	$	16,380

At September 30, 2022 and 2021, respectively, investment securities with a carrying amount of $1.8 million and $5.1 million were pledged to secure public deposits and for other purposes required or permitted by law.

There were no holdings of securities of any one issuer in an amount greater than 10% of stockholders’ equity at September 30, 2022 and 2021.

The following table presents a summary of realized gains and losses from the sale of investment securities:


	Year Ended September 30,
(in thousands)	2022		2021
Proceeds from sales	$	2,105	$	3,240
Gross realized gains on sales	$	105	$	240
Gross realized losses on sales		—		—
Total realized gains, net⁽¹⁾	$	105	$	240

(1)	Amount does not include associated income tax of $24 and $49 for year ended September 30, 2022 and 2021, respectively.

The following tables summarizes gross unrealized losses and fair values of investment securities aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at September 30, 2022 and 2021.


	September 30, 2022
	Less than Twelve Months				Twelve Months or Longer				Total
			Gross				Gross					Gross
			Unrealized				Unrealized		Number of			Unrealized
(in thousands, except number of securities)	Fair Value		Losses		Fair Value		Losses		Securities	Fair Value		Losses
Available-for-sale:
U.S. GSE residential mortgage-backed securities	$	152	$	(126)	$	90	$	(7)	6	$	242	$	(133)
Corporate bonds		10,843		(657)		—		—	6		10,843		(657)
Total available-for-sale	$	10,995	$	(783)	$	90	$	(7)	12	$	11,085	$	(790)
Held-to-maturity:
U.S. GSE residential mortgage-backed securities	$	1,618	$	(160)	$	—	$	—	4	$	1,618	$	(160)
U.S. GSE commercial mortgage-backed securities		2,477		(159)		—		—	1		2,477		(159)
Total held-to-maturity	$	4,095	$	(319)	$	—	$	—	5	$	4,095	$	(319)


	September 30, 2021
	Less than Twelve Months				Twelve Months or Longer				Total
			Gross				Gross					Gross
			Unrealized				Unrealized		Number of			Unrealized
(in thousands, except number of securities)	Fair Value		Losses		Fair Value		Losses		Securities	Fair Value		Losses
Available-for-sale:
U.S. GSE residential mortgage-backed securities	$	143	$	(1)	$	—	$	—	6	$	143	$	(1)
Total available-for-sale	$	143	$	(1)	$	—	$	—	6	$	143	$	(1)
Held-to-maturity:
Corporate bonds	$	1,496	$	(4)	$	—	$	—	1	$	1,496	$	(4)
Total held-to-maturity	$	1,496	$	(4)	$	—	$	—	1	$	1,496	$	(4)

There was no other than temporary impairment loss recognized on any securities at September 30, 2022 or 2021.

Unrealized losses on corporate bonds have not been recognized into income because the issuers’ bonds are of high credit quality (rated AA or higher), management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.

The mortgage-backed securities held by the Company were issued by U.S government-sponsored entities and agencies. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2022 and 2021.

Loans

12 Months Ended

Sep. 30, 2022

Loans

Loans

Note 4. Loans

The following table sets forth the major classifications of loans:


	September 30,
(in thousands)	2022		2021
Real estate:
Residential real estate	$	515,316	$	444,011
Multi-family		574,413		266,294
Commercial real estate		472,511		348,641
Commercial and industrial		45,758		172,274
Construction and land development		12,871		15,374
Consumer		22		11
Gross loans		1,620,891		1,246,605
Net deferred loan fees and costs		2,640		520
Total loans		1,623,531		1,247,125
Allowance for loan losses		(12,844)		(8,552)
Total loans, net	$	1,610,687	$	1,238,573

The Company was a participant in the Paycheck Protection Program (“PPP”), administered by the Small Business Administration under the CARES Act, to provide guaranteed loans to qualifying businesses and organizations. These loans carry a fixed rate of 1.00% and a term of two years (loans made before June 5, 2020, subject to extension to five years with the consent of the lender) or five years (loans made on or after June 5, 2020), if not forgiven, in whole or in part. As of September 30, 2022, borrowers had received forgiveness or had made payments on $355.9 million in PPP loans. The Company’s PPP loans outstanding, included in commercial and industrial loans in the table above, totaled $10.2 million and $140.4 million at September 30, 2022 and 2021, respectively.

As of September 30, 2022 and 2021, the Company was servicing approximately $246.0 million and $233.2 million, respectively, of loans for others. The Company had no loans held for sale as of September 30, 2022 and 2021. In the years ended September 30, 2022 and 2021, the Company sold approximately $80.3 million and $46.6 million, respectively, of loans and recognized gains on the sales of loans of $5.1 million and $1.3 million, respectively.

Purchased Credit Impaired Loans

The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount for those loans at September 30, 2022 and 2021 is as follows:


	September 30,
	2022		2021
(in thousands)
Commercial real estate	$	602	$	8,324
Commercial and industrial		629		1,917
Total recorded investment	$	1,231	$	10,241

The Company has recorded an allowance for loan losses of $50 thousand and $0 related to these loans at September 30, 2022 and 2021, respectively.

The following table presents a summary of changes in accretable difference on purchased loans accounted for under ASC 310-30:


	Year Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	346	$	—
Accretable differences acquired		—		540
Accretion		(1,822)		(194)
Adjustments to accretable difference due to changes in expected cash flows		1,019		—
Other changes, net		537		—
Ending balance	$	80	$	346

The Company continuously monitors the credit quality of its loan receivables. Credit quality is monitored by reviewing certain credit quality indicators. Management has determined that internally assigned credit risk ratings by loan segment are the key credit quality indicators that best assist management in monitoring the credit quality of the Company’s loan receivables.

The Company has adopted a credit risk rating system as part of the risk assessment of its loan portfolio. The Company’s lending officers are required to assign a credit risk rating to each loan in their portfolio at origination. When the lender learns of important financial developments, the risk rating is reviewed and adjusted if necessary. In addition, the Company engages a third-party independent loan reviewer that performs quarterly reviews of a sample of loans, validating the credit risk ratings assigned to such loans. The credit risk ratings play an important role in the establishment of the loan loss provision and to confirm the adequacy of the allowance for loan losses.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. The Company uses the following definitions for risk ratings:

Special Mention: The loan has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects for the asset or in the Company’s credit position at some future date.

Substandard: The loan is inadequately protected by current sound worth and paying capacity of the obligor or collateral pledged, if any. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: The loan has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing factors, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be “pass” rated loans. Loans listed as “not rated” are homogenous residential and consumer type loans which are evaluated based on payment performance as previously disclosed in the aging of past due loans.

The following tables represent loans categorized by class and internally assigned risk grades.


	September 30, 2022
			Special
(in thousands)	Pass		Mention		Substandard		Doubtful		Total
Real Estate:
Residential	$	512,595	$	512	$	3,151	$	—	$	516,258
Multi-family		571,128		—		3,933		—		575,061
Commercial		453,321		8,085		11,578		—		472,984
Commercial and industrial		43,314		540		2,431		—		46,285
Construction and land development		10,499		2,408		—		—		12,907
Consumer		36		—		—		—		36
Total	$	1,590,893	$	11,545	$	21,093	$	—	$	1,623,531


	September 30, 2021
			Special
(in thousands)	Pass		Mention		Substandard		Doubtful		Total
Real Estate:
Residential	$	433,433	$	5,114	$	5,590	$	3	$	444,140
Multi-family		263,400		2,856		458		—		266,714
Commercial		316,894		16,274		15,639		—		348,807
Commercial and industrial		167,906		540		3,631		—		172,077
Construction and land development		13,607		1,767		—		—		15,374
Consumer		13		—		—		—		13
Total	$	1,195,253	$	26,551	$	25,318	$	3	$	1,247,125

Past Due and Nonaccrual Loans

The following table represents the aging of the recorded investment in past due and non-accrual loans as of September 30, 2022 and 2021 by portfolio segment:


(in thousands)	Past Due and Non-Accrual
	30 - 59		60 - 89		Greater than					Total past		Purchased
	Days		Days		89 Days					due and		Credit				Total
September 30, 2022	Past Due		Past Due		Past Due		Non-accrual			Non-accrual		Impaired⁽⁵⁾		Current		Loans
Residential real estate	$	961	$	351	$	—	$	3,151	(1)	$	4,463	$	—	$	511,795	$	516,258
Multi-family		—		—		—		2,348	(2)		2,348		—		572,713		575,061
Commercial real estate		936		—		—		5,875	(3)		6,811		602		465,571		472,984
Commercial and industrial		539		161		—		907	(4)		1,607		629		44,049		46,285
Construction and land development		—		—		—		—			—		—		12,907		12,907
Consumer		—		—		—		—			—		—		36		36
Total	$	2,436	$	512	$	—	$	12,281		$	15,229	$	1,231	$	1,607,071	$	1,623,531

(1)	Of the residential real estate non-accrual loans, $1,227 were not past due and $1,924 were greater than 89 days past due.

(2)	Multi-family non-accrual loans at September 30, 2022 were greater than 89 days past due.

(3)	Commercial real estate non-accrual loans at September 30, 2022 were greater than 89 days past due.

(4)	Commercial and industrial non-accrual loans at September 30, 2022 were greater than 89 days past due.

(5)	Purchased credit impaired loans at September 30, 2022 were greater than 89 days past due.


(in thousands)	Past Due and Non-Accrual
	30 - 59		60 - 89		Greater than					Total past		Purchased
	Days		Days		89 Days					due and		Credit				Total
September 30, 2021	Past Due		Past Due		Past Due		Non-accrual			Non-accrual		Impaired⁽⁴⁾		Current		Loans
Residential real estate	$	1,032	$	1,601	$	—	$	5,554	(1)	$	8,187	$	—	$	435,953	$	444,140
Multi-family		—		—		—		458	(2)		458		—		266,256		266,714
Commercial real estate		1,939		—		—		1,016	(3)		2,955		8,324		337,528		348,807
Commercial and industrial		3,641		—		—		—			3,641		1,917		166,519		172,077
Construction and land development		—		—		—		—			—		—		15,374		15,374
Consumer		—		—		—		—			—		—		13		13
Total	$	6,612	$	1,601	$	—	$	7,028		$	15,241	$	10,241	$	1,221,643	$	1,247,125

(1)	Of the residential real estate non-accrual loans, $1,026 were 61 days past due and $4,528 were greater than 89 days past due.

(2)	Multi-family non-accrual loans at September 30, 2021 were greater than 89 days past due.

(3)	Commercial real estate non-accrual loans at September 30, 2021 were greater than 89 days past due.

(4)	Of the total $10,241 purchased credit impaired loans, $2,519 were greater than 89 days past due.

The following table presents information related to impaired loans by portfolio segment as of and for the years ended September 30, 2022 and 2021:


	September 30, 2022
	Unpaid						Interest		Average
	Principal		Recorded		Allowance		Income		Recorded
(in thousands)	Balance		Investment		Allocated		Recognized		Investment
With no related allowance recorded:
Residential real estate	$	5,394	$	5,392	$	—	$	124	$	4,646
Multi-family		2,348		2,348		—		—		1,066
Commercial real estate		5,950		5,875		—		—		3,627
Commercial and industrial		908		907		—		77		389
Total	$	14,600	$	14,522	$	—	$	201	$	9,728


	September 30, 2021
	Unpaid						Interest		Average
	Principal		Recorded		Allowance for		Income		Recorded
(in thousands)	Balance		Investment		Loan Losses		Recognized		Investment
With no related allowance recorded:
Real estate:
Residential	$	7,382	$	7,198	$	—	$	103	$	4,994
Multi-family		382		458		—		7		177
Commercial		522		517		—		3		197
Commercial and industrial		535		500		—		—		173
Total	$	8,821	$	8,673	$	—	$	113	$	5,541

Accrual basis income recognized on impaired loans approximates cash basis income. The recorded investment in loans excludes accrued interest receivable due to immateriality. For purposes of this disclosure, the unpaid principal balance is not reduced for partial charge-offs.

Troubled Debt Restructurings

A restructuring constitutes a troubled debt restructuring when the restructuring includes a concession by the Bank and the borrower is experiencing financial difficulty. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed to determine if that borrower is currently in payment default under any of its obligations or whether there is a probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. The Company has seven and six loans that are classified as a troubled debt restructuring at September 30, 2022 and 2021 with a total recorded investment of $2.3 million and $1.6 million, respectively.

The Company has not allocated any specific reserves for these loans at September 30, 2022 and 2021. The Company had no commitment to lend additional funds to these debtors at September 30, 2022 and 2021.

There are no troubled debt restructurings for which there was a payment default during 2022 and 2021 for loans that were modified during the twelve- month period prior to default. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

The following table presents loans modified as troubled debt restructurings that occurred during the year ending September 30, 2022:


		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
(Dollars in thousands)	loans	Investment		Investment

Troubled Debt Restructurings:
Residential real estate	2	$	1,011	$	1,011

There was no increase in the allowance for loan losses and no charge-offs during the year ended September 30, 2022 for the troubled debt restructurings described above.

There were no new troubled debt restructurings recorded for the year ended September 30, 2021.

The following tables represent the activity in the allowance for loan losses by portfolio segment for the years ended September 30, 2022 and 2021:


	Year Ended September 30, 2022
							Commercial		Construction
	Residential		Multi-		Commercial		and		and Land
	Real Estate		Family		Real Estate		Industrial		Development		Consumer
	Loans		Loans		Loans		Loans		Loans		Loans		Total
(in thousands)
Allowance for loan losses:
Beginning Balance	$	4,155	$	2,433	$	1,884	$	79	$	—	$	1	$	8,552
Charge-offs		—		(66)		—		(92)		—		—		(158)
Recoveries		—		—		—		—		—		—		—
Provision (credit) for loan losses		(204)		1,941		1,823		774		115		1		4,450
Ending Balance	$	3,951	$	4,308	$	3,707	$	761	$	115	$	2	$	12,844


	Year Ended September 30, 2021
							Commercial		Construction
	Residential		Multi-		Commercial		and		and Land
	Real Estate		Family		Real Estate		Industrial		Development		Consumer
	Loans		Loans		Loans		Loans		Loans		Loans		Total
(in thousands)
Allowance for loan losses:
Beginning Balance	$	5,103	$	1,506	$	1,221	$	38	$	—	$	1	$	7,869
Charge-offs		(267)		(32)		(30)		—		—		—		(329)
Recoveries		—		—		—		12		—		—		12
Provision (credit) for loan losses		(681)		959		693		29		—		—		1,000
Ending Balance	$	4,155	$	2,433	$	1,884	$	79	$	—	$	1	$	8,552

The following table represents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment evaluation method:


	September 30, 2022
							Commercial		Construction
	Residential		Multi-		Commercial		and		and Land
(in thousands)	Real Estate		Family		Real Estate		Industrial		Development		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		3,951		4,308		3,707		711		115		2		12,794
Purchased-credit impaired		—		—		—		50		—		—		50
Total allowance for loan losses	$	3,951	$	4,308	$	3,707	$	761	$	115	$	2	$	12,844
Loans:
Individually evaluated for impairment	$	5,392	$	2,348	$	5,875	$	907	$	—	$	—	$	14,522
Collectively evaluated for impairment		510,866		572,713		466,507		44,749		12,907		36		1,607,778
Purchased-credit impaired		—		—		602		629		—		—		1,231
Total loans held for investment	$	516,258	$	575,061	$	472,984	$	46,285	$	12,907	$	36	$	1,623,531


	September 30, 2021
							Commercial		Construction
	Residential		Multi-		Commercial		and			and Land
(in thousands)	Real Estate		Family		Real Estate		Industrial		Development		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		4,155		2,433		1,884		79		—		1		8,552
Purchased-credit impaired		—		—		—		—		—		—		—
Total allowance for loan losses	$	4,155	$	2,433	$	1,884	$	79	$	—	$	1	$	8,552
Loans:
Individually evaluated for impairment	$	7,198	$	458	$	517	$	500	$	—	$	—	$	8,673
Collectively evaluated for impairment		436,942		266,256		339,966		169,660		15,374		13		1,228,211
Purchased-credit impaired		—		—		8,324		1,917		—		—		10,241
Total loans held for investment	$	444,140	$	266,714	$	348,807	$	172,077	$	15,374	$	13	$	1,247,125

Premises and Equipment

12 Months Ended

Sep. 30, 2022

Premises and Equipment.

Premises and Equipment

Note 5. Premises and Equipment

The following table details the components of premises and equipment:


	September 30,
(in thousands)	2022		2021
Land	$	1,600	$	1,600
Buildings and improvements		10,862		9,974
Leasehold improvements		2,615		2,354
Furniture, fixtures and equipment		5,978		5,269
Construction in progress		111		1,124
		21,166		20,321
Less: Accumulated depreciation and amortization		(6,704)		(5,318)
Premises and equipment, net	$	14,462	$	15,003

Depreciation and amortization was $1.7 million and $1.4 million for the years ended September 30, 2022 and 2021, respectively.

Deposits

12 Months Ended

Sep. 30, 2022

Deposits.

Deposits

Note 6. Deposits

The following table details the components of deposits:


	September 30,
(in thousands)	2022		2021
Non-interest bearing:
Demand	$	219,225	$	191,537
Interest-bearing:
NOW		582,457		353,977
Money market		258,424		181,148
Savings		128,927		60,164
Time deposits $250,000 and greater		87,904		60,242
Time deposits less than $250,000		251,169		317,594
Total interest-bearing		1,308,881		973,125
Total deposits	$	1,528,106	$	1,164,662

The scheduled maturities of time deposits are as follows:


	September 30,
(in thousands)	2022
2023	$	170,497
2024		133,445
2025		25,526
2026		3,882
2027		4,734
Thereafter		989
Total	$	339,073

Borrowings

12 Months Ended

Sep. 30, 2022

Borrowings

Borrowings

Note 7. Borrowings

Federal Home Loan Bank (“FHLB”) Advances

At September 30, 2022 and 2021, FHLB term borrowings outstanding were $37.8 million and $42.0 million, respectively, all of which were fixed rate.

At September 30, 2022, the Company had $55.0 million in FHLB overnight borrowings outstanding at a rate of 3.29%. There were no overnight borrowings outstanding at September 30, 2021.

The following table sets forth the contractual maturities and weighted average interest rates of the Company’s fixed rate FHLB overnight and term advances:


	Balance at September 30,
	2022
			Weighted
Contractual Maturity	Amount		Average Rate
Overnight	$	55,000	3.29	%

2023, rates from 0.37% to 2.96%		11,860	2.23	%
2024, rates from 0.39% to 2.53%		18,860	0.98	%
2025, rates from 0.56% to 0.59%		7,080	0.58	%
Total term advances		37,800	1.30	%
Total FHLB advances	$	92,800	2.48	%


	Balance at September 30,
	2021
			Weighted
Contractual Maturity	Amount		Average Rate
Overnight	$	—	—	%

2022, rates from 2.01% to 2.05%		4,000	2.02	%
2023, rates from 0.37% to 2.96%		12,040	2.23	%
2024, rates from 0.39% to 2.53%		18,860	0.98	%
2025, rates from 0.56% to 0.59%		7,080	0.58	%
Total term advances		41,980	1.37	%
Total FHLB advances	$	41,980	1.37	%

Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $822.2 million and $432.7 million of residential and commercial mortgage loans under a blanket lien arrangement at September 30, 2022 and 2021, respectively. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow up to an additional total of $183.6 million at September 30, 2022.

Federal Reserve Borrowings

At September 30, 2022 and 2021, the Company’s borrowings from the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”) were $9.0 million and $117.7 million, respectively. The borrowings have a rate of 0.35% and the maturity date will equal the maturity date of the underlying PPP loan pledged to secure the extension of credit. The maturity date of a PPP loan is either two or five years from origination date. The Company utilized the PPPLF to fund PPP loan production. The borrowings are fully secured by pledged PPP loans as of September 30, 2022 and 2021.

Correspondent Bank Borrowings

At September 30, 2022, approximately $65 million in unsecured lines of credit extended by correspondent banks were available to be utilized for short-term funding purposes. No borrowings were outstanding under lines of credit with correspondent banks at September 30, 2022 and 2021.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Subordinated Debentures

12 Months Ended

Sep. 30, 2022

Subordinated Debentures

Subordinated Debentures

Note 8. Subordinated Debentures

In October 2020, the Company completed the private placement of $25.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2030 (the “Notes”) to certain qualified institutional buyers and accredited investors. The Notes will initially bear interest, payable semi-annually, at the rate of 5.00% per annum, until October 15, 2025. From and including October 15, 2025, the interest rate applicable to the outstanding principal amount due will reset quarterly to the then current three-month secured overnight financing rate (“SOFR”) plus 487.4 basis points. The Company may, at its option, beginning with the interest payment date of October 15, 2025 but not generally prior thereto, and on any scheduled interest payment date thereafter, redeem the Notes, in whole or in part, subject to the receipt of any required regulatory approval. The Notes are not subject to redemption at the option of the holder. The portion of the proceeds of these subordinated notes contributed to the Bank are included as a component of the Bank’s Tier 1 capital for regulatory reporting.

At September 30, 2022 and 2021, the unamortized issuance costs of the Notes were $0.4 million and $0.5 million, respectively. For each of the years ended September 30, 2022 and 2021, $0.1 million of issuance costs were recorded in interest expense. The Notes are presented net of unamortized issuance costs in the Company’s Consolidated Statements of Financial Condition.

Goodwill and Other Intangible Assets

12 Months Ended

Sep. 30, 2022

Goodwill and Other Intangible Assets.

Goodwill and Other Intangible Assets

Note 9. Goodwill and Other Intangible Assets

FASB ASC 350, Intangibles - Goodwill and Other, requires a company to perform an impairment test on goodwill annually, or more frequently if events or changes in circumstance indicate that the asset might be impaired, by comparing the fair value of such goodwill to its recorded or carrying amount. If the carrying amount of goodwill exceeds the fair value, an impairment charge must be recorded in an amount equal to the excess.

The following table presents activity for goodwill and other intangible assets, which consist of core deposit intangibles:


	September 30,
(in thousands)	2022		2021
Goodwill at beginning of period	$	19,168	$	1,901
Acquisition		—		17,457
Measurement period adjustment for previous acquisition		—		(190)
Goodwill at end of period	$	19,168	$	19,168
Other intangible assets at beginning of period	$	480	$	22
Acquisition		—		490
Amortization		(81)		(32)
Other intangible assets at end of period	$	399	$	480

The Company has identified one reporting unit for purposes of testing goodwill for impairment, which is the Company as a whole.

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At August 31, 2022, the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment.

The following table presents the gross carrying amount and accumulated amortization for the Company’s other intangible assets, which consist of core deposit intangibles:


	September 30,
(in thousands)	2022		2021
Gross carrying amount	$	517	$	517
Accumulated amortization		(118)		(37)
Net book value	$	399	$	480

At September 30, 2022, the weighted-average remaining life of the Company’s other intangible assets was 4.06 years.

The following table presents estimated future amortization expense for other intangible assets:


(in thousands)
2023	$	72
2024		63
2025		55
2026		49
2027		43
Thereafter		117
Total	$	399

Income Taxes

12 Months Ended

Sep. 30, 2022

Income Taxes.

Income Taxes

Note 10. Income Taxes

The following table details the components of income tax expense:


	Year Ended September 30,
(in thousands)	2022		2021
Current:
Federal	$	5,081	$	2,594
State		540		242
Total current		5,621		2,836
Deferred:
Federal		1,055		394
State		735		(383)
Total deferred		1,790		11
Change in valuation allowance		(472)		354
Total income tax expense	$	6,939	$	3,201

The following table reflects a reconciliation of reported income tax expense to the amount that would result from applying the federal statutory rate of 21%:


	Year Ended September 30,
	2022				2021
			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	$	6,404	21.0	%	$	2,951	21.0	%
State taxes, net of federal benefit		1,156	3.8	%		48	0.3	%
Non-deductible transaction costs		(1)	—	%		204	1.5	%
Other		(148)	(0.5)	%		(356)	(2.5)	%
Change in valuation allowance		(472)	(1.5)	%		354	2.5	%
Income tax expense	$	6,939	22.8	%	$	3,201	22.8	%

The following table summarizes the composition of deferred tax assets and liabilities:


	September 30,
(in thousands)	2022		2021
Deferred tax assets:
Allowance for loan losses and other contingent liabilities	$	4,014	$	2,654
Net operating loss carryforwards		2,415		2,443
Compensation and related benefit obligations		1,323		775
Accrued SERP		1,062		1,288
Purchase accounting fair value adjustments		727		2,034
Unrealized loss on securities AFS		170		—
Organizational costs		63		153
Mortgage servicing rights		—		45
Total deferred tax assets		9,774		9,392
Deferred tax liabilities:
Deferred fees and costs		(2,718)		(883)
Depreciation		(951)		(771)
Mortgage servicing rights		(15)		—
Tax bad debt reserve		—		(204)
Unrealized gain on securities AFS		—		(70)
Other		(158)		(10)
Total deferred tax liabilities		(3,842)		(1,938)
Total		5,932		7,454
Valuation allowance		(3,424)		(3,896)
Net deferred tax asset	$	2,508	$	3,558

The Company does not have net operating loss carryforwards available for federal income tax purposes as of September 30, 2022. The Company has net operating loss carryforwards available for state income tax purposes of approximately $31.0 million. For state purposes, $12.4 million expires in 2025 and the remaining $18.6 million will begin to expire in 2036. The Company has net operating loss carryforwards available for city income tax purposes of approximately $7.3 million, of which $0.5 million will expire in 2025 and the remaining $6.8 million will begin to expire in 2037.

ASC 740, Income Taxes, provides for the recognition of deferred tax assets if realization of such assets is more likely than not. The Company has recorded a federal deferred tax asset as, based upon an analysis of the evidence, it is more likely than not that such federal deferred tax asset will be recoverable. In March of 2014, New York State adopted legislation that benefited small community banks with less than $8 billion in average assets. Specifically, this legislation provides for a state and city subtraction modification for which the Company qualifies. This subtraction modification causes the Company to consistently generate net operating losses for New York State and New York City purposes and it

will continue to do so for the foreseeable future. Accordingly, the Company has recorded a valuation allowance against the New York State and New York City portions of the deferred tax asset, as it is not more likely than not that such deferred tax assets will be recoverable. Management reassesses the need for a valuation allowance on an annual basis, or more frequently if warranted.

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the states of Connecticut, New Jersey and New York and the city of New York. The Company is no longer subject to examination by taxing authorities for years before 2018. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination. The Company has no unrecorded tax benefits, and the Company does not expect the total amount of unrecognized income tax benefits to significantly increase in the next twelve months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Equity Compensation Plans

12 Months Ended

Sep. 30, 2022

Equity Compensation Plans

Equity Compensation Plans

Note 11. Equity Compensation Plans

The Company’s 2021 and 2018 Equity Compensation Plans (the “2021 Plan” and the “2018 Plan”, respectively), provide for the grant of stock-based compensation awards to members of management, including employees and management officials, and members of the Board. Under the 2021 Plan, a total of 427,500 shares of the Company’s common stock or equivalents were approved for issuance, of which 284,472 shares remain available for issuance at September 30, 2022. Of the total 346,000 shares of common stock approved for issuance under the 2018 Plan, 36,935 shares remain available for issuance at September 30, 2022. Hanover assumed the 2013 Savoy Bank Stock Option Plan solely in connection with options to purchase Savoy common stock held by the former Chief Executive Officer of Savoy and which, under the terms of the Agreement and Plan of Merger between the Company and Savoy, were converted into options to purchase 71,900 shares of Hanover common stock.

Stock Options

Stock options are granted with an exercise price equal to the fair market value of the Company’s common stock at the date of grant, and generally with vesting periods of three years and contractual terms of ten years. All stock options fully vest upon a change in control.

The fair value of stock options is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of the common stock of the Company’s peers. The Company uses historical data to estimate option exercise and post-vesting termination behavior. Expected terms are based on historical data and represent the periods in which the options are expected to be outstanding. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

A summary of stock option activity follows (aggregate intrinsic value in thousands):


						Weighted
		Weighted				Average
		Average		Aggregate		Remaining
	Number of	Exercise		Intrinsic		Contractual
	Options	Price		Value		Term
Outstanding, October 1, 2021	227,406	$	9.50	$	2,043	3.51 years
Granted	—		—
Exercised	—		—
Forfeited	—		—
Outstanding, September 30, 2022 ⁽¹⁾	227,406	$	9.50	$	2,298	2.45 years

(1)	All outstanding options are fully vested and exercisable

There was no compensation expense attributable to stock options for the years ended September 30, 2022 and 2021, respectively.

Restricted Stock Awards

During the year ended September 30, 2022, restricted stock awards of 44,642 shares were granted with a three-year vesting period and 234,288 shares were granted with a five-year vesting period. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at issue date.

A summary of restricted stock awards activity follows:


		Weighted-Average
	Number of	Grant Date Fair
	Shares	Value
Unvested, October 1, 2021	75,833	$	19.87
Granted	278,930		19.73
Vested	(45,835)		19.62
Forfeited	(24,665)		19.71
Unvested, September 30, 2022	284,263	$	19.78

Compensation expense attributable to restricted stock awards was $1.5 million and $0.9 million for the years ended September 30, 2022 and 2021, respectively. As of September 30, 2022, there was $4.7 million of total unrealized compensation cost related to unvested restricted stock, expected to be recognized over a weighted-average term of 3.93 years. The total fair value of shares vested during the years ended September 30, 2022 and 2021 was $0.9 million and $0.9 million, respectively.

Restricted Stock Units

Long Term Incentive Plan

Restricted stock units (RSUs) represent an obligation to deliver shares to a grantee at a future date if certain vesting conditions are met. RSUs are subject to a time-based vesting schedule, and/or the satisfaction of performance conditions, and are settled in shares of the Company's common stock. RSUs do not provide voting rights and RSUs may accrue dividends from the date of grant.

The following table summarizes the unvested performance-based RSU activity for the year ended September 30, 2022:


		Weighted-Average
	Number of	Grant Date Fair
	Shares	Value
Unvested, October 1, 2021	—	$	—
Granted	51,097		19.73
Vested	—		—
Forfeited	(3,421)		19.73
Unvested, September 30, 2022	47,676	$	19.73

During the year ended September 30, 2022, the Company granted 51,097 RSUs. These performance-based RSUs cliff vest after three years and are subject to the achievement of the Company's pre-defined performance goals for the three-year period ending December 31, 2024.

Compensation expense attributable to RSUs was $0.2 million for the year ended September 30, 2022. There was no compensation expense related to RSUs for the year ended September 30, 2021, as no RSUs were granted in 2021. As of September 30, 2022, there was $0.7 million of total unrecognized compensation cost related to non-vested RSUs. The cost is expected to be recognized over a weighted-average period of 2.39 years.

Related Party Transactions

12 Months Ended

Sep. 30, 2022

Related Party Transactions.

Related Party Transactions

Note 12. Related Party Transactions

The Company has had, and may be expected to have in the future, banking transactions in the ordinary course of business with its executive officers, directors, their immediate families and their affiliated companies (commonly referred to as related parties). Loans to related parties during 2022 were as follows:


(in thousands)
Beginning balance, October 1, 2021	$	2,490
New loans		874
Repayments		(628)
Ending balance, September 30, 2022	$	2,736

Deposits from principal officers, directors and their affiliates at September 30, 2022 and 2021 were $12.8 million and $20.0 million, respectively.

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.

Regulatory Matters

12 Months Ended

Sep. 30, 2022

Regulatory Matters

Regulatory Matters

Note 14. Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet minimum capital requirements can initiate regulatory action. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of September 30, 2022, the Bank meets all capital adequacy requirements to which it is subject.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized or worse, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2022 and 2021, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

Under a policy of the Federal Reserve applicable to bank holding companies with less than $3.0 billion in consolidated assets, the Company is not subject to consolidated regulatory capital requirements.

The following table sets forth the Bank’s actual and required capital amounts (in thousands) and ratios under current regulations:


									Minimum Capital				Minimum to Be Well
									Adequacy Requirement				Capitalized Under
					Minimum Capital				with Capital				Prompt Corrective
	Actual Capital				Adequacy Requirement				Conservation Buffer				Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
September 30, 2022
Total capital to risk-weighted assets	$	191,355	16.32	%	$	93,796	8.00	%	$	123,107	10.50	%	$	117,245	10.00	%
Tier 1 capital to risk-weighted assets		178,340	15.21	%		70,347	6.00	%		99,658	8.50	%		93,796	8.00	%
Common equity tier 1 capital to risk-weighted assets		178,340	15.21	%		52,760	4.50	%		82,071	7.00	%		76,209	6.50	%
Tier 1 capital to average total assets		178,340	10.90	%		65,429	4.00	%		N/A	N/A			81,786	5.00	%

September 30, 2021
Total capital to risk-weighted assets	$	132,554	15.59	%	$	68,040	8.00	%	$	89,303	10.50	%	$	85,050	10.00	%
Tier 1 capital to risk-weighted assets		123,666	14.54	%		51,030	6.00	%		72,293	8.50	%		68,040	8.00	%
Common equity tier 1 capital to risk-weighted assets		123,666	14.54	%		38,273	4.50	%		59,535	7.00	%		55,283	6.50	%
Tier 1 capital to average total assets		123,666	9.45	%		52,338	4.00	%		N/A	N/A			65,423	5.00	%

Dividend restrictions - The Company’s principal source of funds for dividend payments is dividends received from the Bank. During 2022 the Bank made $0.4 million cash dividends to the Holding Company. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of September 30, 2022, the Bank had $42.2 million of retained net income available for dividends to the Company, without obtaining regulatory approval. The Holding Company made capital contributions of $26.0 million to the Bank.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Fair Value Measurements

12 Months Ended

Sep. 30, 2022

Fair Value Measurements

Fair Value Measurements

Note 15. Fair Value Measurements

FASB ASC No. 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined using quoted market prices. However, in many instances, quoted market prices are not available. In such instances, fair values are determined using appropriate valuation techniques. Various assumptions and observable inputs must be relied upon in applying these techniques. Accordingly, categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. As such, the fair value estimates may not be realized in an immediate transfer of the respective asset or liability.

FASB ASC 820-10 also establishes a fair value hierarchy and describes three levels of inputs that may be used to measure fair values. The three levels within the fair value hierarchy are as follows:

●

Level 1: Valuation is based upon unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

●

Level 2: Fair value is calculated using significant inputs other than quoted market prices that are directly or indirectly observable for the asset or liability. The valuation may rely on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, rate volatility, prepayment speeds, credit ratings) or inputs that are derived principally or corroborated by market data, by correlation, or other means.

●

Level 3: Inputs for determining the fair value of the respective assets or liabilities are not observable. Level 3 valuations are reliant upon pricing models and techniques that require significant management judgment or estimation.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Assets Measured at Fair Value on a Recurring Basis

The following table summarizes assets measured at fair value on a recurring basis:


	September 30, 2022
			Fair Value Measurements Using:
			Quoted Prices In				Significant
			Active Markets		Significant Other		Unobservable
	Carrying		for Identical Assets		Observable Inputs		Inputs
(in thousands)	Amount		(Level 1)		(Level 2)		(Level 3)
Financial assets:
Available-for-sale securities:
U.S. GSE residential mortgage-backed securities	$	242	$	—	$	242	$	—
Corporate bonds		12,043		—		12,043		—
Loan servicing rights		4,353		—		—		4,353
Total	$	16,638	$	—	$	12,285	$	4,353


	September 30, 2021
			Fair Value Measurements Using:
			Quoted Prices In
			Active Markets				Significant
			for Identical		Significant Other		Unobservable
	Carrying		Assets		Observable Inputs		Inputs
(In thousands)	Amount		(Level 1)		(Level 2)		(Level 3)
Financial assets:
Available-for-sale securities:
U.S. GSE residential mortgage-backed securities	$	833	$	—	$	833	$	—
Corporate bonds		6,914		—		6,914		—
Loan servicing rights		3,690		—		—		3,690
Total	$	11,437	$	—	$	7,747	$	3,690

The fair value for the securities available-for-sale were obtained from an independent broker based upon matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. The Company has determined these are classified as Level 2 inputs within the fair value hierarchy.

The fair value of mortgage servicing rights are based on a valuation model that calculates the present value of estimated future servicing income. The valuation model utilizes interest rate, prepayment speed, and default rate assumptions that market participants would use in estimating future net servicing income. Fair value of loan servicing rights related to residential mortgage loans at September 30, 2022 was determined based on discounted expected future cash flows using discount rates ranging from 12.0% to 14.5%, prepayment speed of 26.25% and a weighted average life ranging from 1.2 to 3.0 years. Fair value at September 30, 2021 for mortgage servicing rights was determined based on discounted expected future cash flows using discount rates ranging from 12.0% to 14.5%, prepayment speeds ranging from 24.18% to 24.33% and a weighted average life ranging from 1.96 to 3.3 years.

The fair value of loan servicing rights for SBA loans at September 30, 2022 was determined based on discounted expected future cash flows using discount rates ranging from 5.78% to 26.72%, prepayment speeds ranging from 8.42% to 24.00% and a weighted average life ranging from 1.47 to 5.79 years. The fair value of loan servicing rights for SBA loans at September 30, 2021 was determined based on discounted expected future cash flows using discount rates ranging from 4.64% to 21.81%, prepayment speeds ranging from 11.87% to 26.26% and a weighted average life ranging from 0.39 to 5.85 years.

The Company has determined these are mostly unobservable inputs and considers then Level 3 inputs within the fair value hierarchy.

The following table presents the changes in loan servicing rights for the periods presented:


	Year Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	3,690	$	155
Loan servicing rights obtained from acquisition of Savoy		—		3,777
Additions		1,158		10
Adjustment to fair value		(495)		(252)
Balance at end of period	$	4,353	$	3,690

Assets Measured at Fair Value on a Non-recurring Basis

There were no assets or liabilities measured at fair value on a non-recurring basis as of September 30, 2022 and 2021 and for the years then ended.

Financial Instruments Not Measured at Fair Value

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments not carried at fair value at September 30, 2022 and 2021:


	September 30, 2022
			Fair Value Measurements Using:
			Quoted Prices In
			Active Markets				Significant
			for Identical		Significant Other		Unobservable
	Carrying		Assets		Observable Inputs		Inputs		Total Fair
(In thousands)	Amount		(Level 1)		(Level 2)		(Level 3)		Value
Financial assets:
Cash and cash equivalents	$	149,947	$	149,947	$	—	$	—	$	149,947
Securities held-to-maturity		4,414		—		4,095		—		4,095
Loans, net		1,610,687		—		—		1,564,991		1,564,991
Accrued interest receivable		8,546		—		219		8,327		8,546

Financial liabilities:
Time deposits		339,073		—		328,964		—		328,964
Demand and other deposits		1,189,033		1,189,033		—		—		1,189,033
Borrowings		101,752		—		99,597		—		99,597
Subordinated debentures		24,568		—		24,199		—		24,199
Accrued interest payable		915		1		914		—		915


	September 30, 2021
			Fair Value Measurements Using:
			Quoted Prices In
			Active Markets				Significant
			for Identical		Significant Other		Unobservable
	Carrying		Assets		Observable Inputs		Inputs		Total Fair
(In thousands)	Amount		(Level 1)		(Level 2)		(Level 3)		Value
Financial assets:
Cash and cash equivalents	$	166,544	$	166,544	$	—	$	—	$	166,544
Securities held-to-maturity		8,611		—		8,865		—		8,865
Loans, net		1,238,573		—		—		1,278,056		1,278,056
Accrued interest receivable		9,363		—		211		9,152		9,363

Financial liabilities:
Time deposits		377,836		—		378,333		—		378,333
Demand and other deposits		786,826		786,826		—		—		786,826
Borrowings		159,642		—		159,608		—		159,608
Subordinated debentures		24,513		—		27,092		—		27,092
Accrued interest payable		1,290		1		713		576		1,290

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Parent Company Only Condensed Financial Information

12 Months Ended

Sep. 30, 2022

Parent Company Only Condensed Financial Information [Abstract]

Parent Company Only Condensed Financial Information

Note 16. Parent Company Only Condensed Financial Information

Condensed parent company only financial statements of Hanover Bancorp, Inc. are as follows:

Condensed Balance Sheets


	September 30,
(in thousands)	2022		2021
ASSETS
Cash and due from banks	$	304	$	571
Investment in Bank		197,290		146,232
Other assets		141		1,050
Total Assets	$	197,735	$	147,853

LIABILITIES AND STOCKHOLDERS' EQUITY
Subordinated debentures	$	24,568	$	24,513
Accrued interest payable		573		576
Accrued expenses and other liabilities		10		235
Total Liabilities		25,151		25,324
Total Stockholders' Equity		172,584		122,529
Total Liabilities and Stockholders' Equity	$	197,735	$	147,853

Condensed Statements of Income


	Year Ended September 30,
(in thousands)	2022		2021
Dividends received from Bank	$	400	$	—
Interest expense		(1,331)		(1,361)
Non-interest expense		(18)		—
Loss before income taxes and equity in undistributed earnings of the Bank		(949)		(1,361)
Income tax benefit		253		296
Equity in undistributed earnings of the Bank		24,252		11,916
Net income	$	23,556	$	10,851

Condensed Statements of Cash Flows


	Year Ended September 30,
(in thousands)	2022		2021
Cash flows from operating activities:
Net income	$	23,556	$	10,851
Adjustments to reconcile net income to net cash used in operating activities:
Equity in undistributed earnings of the Bank		(24,252)		(11,916)
Amortization of debt issuance costs		55		72
Decrease (increase) in other assets		909		(295)
(Decrease) increase in accrued interest payable		(3)		542
(Decrease) increase in other liabilities		(223)		235
Net cash provided by (used in) operating activities		42		(511)

Cash flows from investing activities:
Investment in Bank		(26,000)		(9,000)
Net cash used in investing activities		(26,000)		(9,000)

Cash flows from financing activities:
Proceeds from issuance of subordinated debentures, net of issuance costs		—		24,455
Repayment of note payable		—		(15,000)
Net proceeds from issuance of common stock		27,771		113
Payments related to tax withholding for equity awards		(28)		—
Cash dividends paid to common stockholders		(2,052)		—
Net cash provided by financing activities		25,691		9,568

Net (decrease) increase in cash and due from banks		(267)		57
Cash and due from banks, beginning of period		571		514
Cash and due from banks, end of period	$	304	$	571

Supplemental non-cash disclosures:
Common stock issued in acquisition	$	—	$	31,252
Stock options rolled over in acquisition		—		1,269

Earnings Per Share

12 Months Ended

Sep. 30, 2022

Earnings Per Share

Earnings Per Share

Note 17. Earnings Per Share

The two-class method is used in the calculation of basic and diluted earnings per share (“EPS”). Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared and participation rights in undistributed earnings.

The Company’s basic and diluted EPS calculations are presented in the following table:


	Year Ended September 30,
(in thousands, except share and per share data)	2022		2021

Net income available to common stockholders	$	23,556	$	10,851
Less: Dividends paid and earnings allocated to participating securities		(903)		(218)
Income attributable to common stock	$	22,653	$	10,633
Weighted average common shares outstanding, including participating securities		6,302,328		4,669,009
Less: Weighted average participating securities		(237,259)		(93,799)
Weighted average common shares outstanding		6,065,069		4,575,210
Basic EPS	$	3.74	$	2.32

Income attributable to common stock	$	22,653	$	10,633
Weighted average common shares outstanding		6,065,069		4,575,210
Weighted average common equivalent shares outstanding		92,977		89,660
Weighted average common and equivalent shares outstanding		6,158,046		4,664,870
Diluted EPS	$	3.68	$	2.28

There were no stock options that were antidilutive at September 30, 2022 and 2021.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Sep. 30, 2022

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME

Note 18. Accumulated Other Comprehensive Income (Loss)

The following presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ended September 30, 2022 and 2021:


	Unrealized Gains and
	Losses on Available-
	for-Sale Debt
(in thousands)	Securities
Balance at October 1, 2021	$	256
Other comprehensive loss, before reclassification		(795)
Amount reclassified from accumulated other comprehensive income		(81)
Net current period other comprehensive loss		(876)
Balance at September 30, 2022	$	(620)



	Unrealized Gains and
	Losses on Available-
	for-Sale Debt
(in thousands)	Securities
Balance at October 1, 2020	$	156
Other comprehensive income, before reclassification		291
Amount reclassified from accumulated other comprehensive income		(191)
Net current period other comprehensive income		100
Balance at September 30, 2021	$	256

The following represents the reclassification out of accumulated other comprehensive income for the years ended September 30, 2022 and 2021:


	Year Ended
	September 30,				Affected Line Item in Consolidated
(in thousands)	2022		2021		Statements of Income
Realized gains on securities available-for-sale	$	105	$	240	Gain on sale of investment securities available-for-sale, net
Tax effect		24		49	Income tax expense
Net of tax	$	81	$	191

Revenue from Contracts with Customers

12 Months Ended

Sep. 30, 2022

Revenue from Contracts with Customers [Abstract]

Revenue from Contracts with Customers

Note 19. Revenue from Contracts with Customers

All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within Non-Interest Income. The following table presents the Company’s sources of non-interest income. Items outside the scope of ASC 606 are noted as such.


	Year Ended September 30,
(in thousands)	2022		2021
Loan servicing and fee income⁽¹⁾	$	2,885	$	1,207
Service charges on deposit accounts		232		127
Net gain on sale of loans held-for-sale⁽¹⁾		5,143		1,307
Net gain on sale of investments available-for-sale⁽¹⁾		105		240
Other income⁽²⁾		507		468
Total non-interest income	$	8,872	$	3,349

(1)	Not included within the scope of ASC 606

(2)

Other income includes merchant card processing fees of $33 and $9 for the year ended September 30, 2022 and 2021, respectively, which are included in the scope of ASC 606 and loan related fee income, recoveries on acquired loans and miscellaneous income totaling $474 and $459 for 2022 and 2021, respectively, which are not included in the scope of ASC 606.

A description of the Company’s revenue streams included in the scope of ASC 606 is as follows:

Service Charges on Deposit Accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Service-based fees, which include services such as ATM use fees, stop payment charges, wire transfers, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills its performance obligation to the customer. Account maintenance fees, which primarily relate to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies its performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on customer accounts are withdrawn from the customer’s account balance.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2022

Summary of Significant Accounting Policies.

Basis of Presentation

Use of Estimates

Risks and Uncertainties

Significant Group Concentrations of Credit Risk

Business Combinations

Cash and Cash Equivalents

Restrictions on Cash

Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements.

Investment Securities

Federal Home Loan Bank Stock

Loans Held for Sale

Loans and Loan Interest Income Recognition

Lending Risk

Allowance for Loan Losses

The allowance for loan losses consists of the following components:

As noted above, the adjustments to the Company’s loss experience is based on management’s evaluation of several environmental factors, including:

●

changes in the nature and volume of the Company’s portfolio and in the terms of the Company’s loans;

●

changes in the experience, ability, and depth of lending management and other relevant staff;

●

changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans;

●

changes in the quality of the Company’s loan review system;

●

changes in lending policies, procedures and strategies;

●

changes in the value of underlying collateral for collateral-dependent loans;

●

the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and

●

the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing portfolio.

Loan Modifications Under the CARES Act

Servicing Rights

Transfers of Financial Assets

Premises and Equipment

Goodwill and Other Intangible Assets

Debt Issuance Costs

Earnings Per Share ("EPS")

Earnings Per Share (“EPS”)

Comprehensive Income

Income Taxes

Fair Value Measurements

Revenue From Contracts With Customers

Operating Segments

Stock Compensation Plans

model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used to estimate the fair value for RSAs and RSUs.

Supplemental Executive Retirement Plan

Recent Accounting Pronouncements

Business Combinations (Tables)

12 Months Ended

Sep. 30, 2022

Business Combinations

Fair Value of Assets Received and Liabilities Assumed

A final summary of the fair value of assets received and liabilities assumed are as follows:


	As Recorded		Fair Value			As Recorded
(in thousands)	by Savoy		Adjustments			by Hanover
Assets
Cash and due from banks	$	59,155	$	—		$	59,155
Investment securities available-for-sale		239		—			239
Loans held for sale		3,883		—			3,883
Loans held for investment		569,251		8,612	(a)		577,863
Premises and equipment, net		234		(22)	(b)		212
Core deposit intangible		—		490	(c)		490
Accrued interest receivable		5,171		(650)	(d)		4,521
Other assets		10,432		(2,925)	(e)		7,507
Total assets acquired	$	648,365	$	5,505			653,870
Liabilities
Deposits	$	340,215	$	2,527	(f)		342,742
Borrowings		258,247		301	(g)		258,548
Accrued interest payable		1,050		—			1,050
Other liabilities and accrued expenses		3,817		(342)	(h)		3,475
Total liabilities assumed	$	603,329	$	2,486			605,815
Net assets acquired							48,055
Total consideration							65,512
Goodwill						$	17,457

(a)	Represents the fair value adjustments on net book value of loans, which includes an interest rate mark and credit mark adjustment, the write-off of deferred fees/costs and premiums and the elimination of Savoy’s allowance for loan losses.

(b)	Represents the fair value adjustments to reflect the fair value of premises and equipment.

(c)	Represents the fair value of core deposit intangible recorded, which is amortized on an accelerated basis over the estimated average life of the deposit base.

(d)	Represents an adjustment to accrued interest receivable acquired.

(e)	Represents an adjustment to other assets acquired. The largest adjustment was the net deferred tax assets resulting from the fair value adjustment related to the acquired assets, liabilities assumed and identifiable intangible assets recorded.

(f)	Represents the fair value adjustments on time deposits, which is treated as a reduction of interest expense over the remaining term of the time deposits.

(g)	Represents the fair value adjustments on an FHLB borrowing, which is treated as a reduction to interest expense over the life of the borrowing.

(h)	Represents an adjustment to other liabilities assumed.

Consideration Paid


(in thousands, except share data)
Common stock issued (1,357,567 shares issued)	$	31,252
Rollover options		1,269
Cash payments to common shareholders		32,991
Total consideration paid	$	65,512

Loans Acquired in Savoy Acquisition

The following is a summary of the loans accounted for in accordance with ASC 310-30 that were acquired in the Savoy acquisition as of the merger date:


(in thousands)
Contractually required principal and interest at acquisition	$	14,416
Contractual cash flows not expected to be collected (non-accretable discount)		(3,467)
Expected cash flows at acquisition		10,949
Interest component of expected cash flows (accretable discount)		(540)
Fair value of acquired purchased credit impaired loans	$	10,409

Investment Securities (Tables)

12 Months Ended

Sep. 30, 2022

Investment Securities

Investment Securities Available for Sale and Held to Maturity


	September 30, 2022
	Amortized		Gross Unrealized		Gross Unrealized
(in thousands)	Cost		Gains		Losses		Fair Value
Available for sale:
U.S. GSE residential mortgage-backed securities	$	375	$	—	$	(133)	$	242
Corporate bonds		12,700		—		(657)		12,043
Total available for sale securities	$	13,075	$	—	$	(790)	$	12,285

Held to maturity:
U.S. GSE residential mortgage-backed securities	$	1,778	$	—	$	(160)	$	1,618
U.S. GSE commercial mortgage-backed securities		2,636		—		(159)		2,477
Total held to maturity securities		4,414		—		(319)		4,095
Total investment securities	$	17,489	$	—	$	(1,109)	$	16,380


	September 30, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized
(in thousands)	Cost		Gains		Losses		Fair Value
Available for sale:
U.S. GSE residential mortgage-backed securities	$	722	$	112	$	(1)	$	833
Corporate bonds		6,700		214		—		6,914
Total available for sale securities	$	7,422	$	326	$	(1)	$	7,747

Held to maturity:
U.S. GSE residential mortgage-backed securities	$	2,417	$	74	$	—	$	2,491
U.S. GSE commercial mortgage-backed securities		2,694		175		—		2,869
Corporate bonds		3,500		9		(4)		3,505
Total held to maturity securities		8,611		258		(4)		8,865
Total investment securities	$	16,033	$	584	$	(5)	$	16,612

Securities Portfolio by Contractual Maturity


	September 30, 2022
	Amortized		Fair
(in thousands)	Cost		Value
Securities available for sale:
Five to ten years	$	12,700	$	12,043
U.S. GSE residential mortgage-backed securities		375		242
Total securities available for sale		13,075		12,285
Securities held to maturity:
One to five years		—		—
Five to ten years		—		—
U.S. GSE residential mortgage-backed securities		1,778		1,618
U.S. GSE commercial mortgage-backed securities		2,636		2,477
Total securities held to maturity		4,414		4,095
Total investment securities	$	17,489	$	16,380

Realized Gains and Losses from Sale of Investment Securities


	Year Ended September 30,
(in thousands)	2022		2021
Proceeds from sales	$	2,105	$	3,240
Gross realized gains on sales	$	105	$	240
Gross realized losses on sales		—		—
Total realized gains, net⁽¹⁾	$	105	$	240

(1)	Amount does not include associated income tax of $24 and $49 for year ended September 30, 2022 and 2021, respectively.

Gross Unrealized Losses and Fair Values of Investment Securities


	September 30, 2022
	Less than Twelve Months				Twelve Months or Longer				Total
			Gross				Gross					Gross
			Unrealized				Unrealized		Number of			Unrealized
(in thousands, except number of securities)	Fair Value		Losses		Fair Value		Losses		Securities	Fair Value		Losses
Available-for-sale:
U.S. GSE residential mortgage-backed securities	$	152	$	(126)	$	90	$	(7)	6	$	242	$	(133)
Corporate bonds		10,843		(657)		—		—	6		10,843		(657)
Total available-for-sale	$	10,995	$	(783)	$	90	$	(7)	12	$	11,085	$	(790)
Held-to-maturity:
U.S. GSE residential mortgage-backed securities	$	1,618	$	(160)	$	—	$	—	4	$	1,618	$	(160)
U.S. GSE commercial mortgage-backed securities		2,477		(159)		—		—	1		2,477		(159)
Total held-to-maturity	$	4,095	$	(319)	$	—	$	—	5	$	4,095	$	(319)


	September 30, 2021
	Less than Twelve Months				Twelve Months or Longer				Total
			Gross				Gross					Gross
			Unrealized				Unrealized		Number of			Unrealized
(in thousands, except number of securities)	Fair Value		Losses		Fair Value		Losses		Securities	Fair Value		Losses
Available-for-sale:
U.S. GSE residential mortgage-backed securities	$	143	$	(1)	$	—	$	—	6	$	143	$	(1)
Total available-for-sale	$	143	$	(1)	$	—	$	—	6	$	143	$	(1)
Held-to-maturity:
Corporate bonds	$	1,496	$	(4)	$	—	$	—	1	$	1,496	$	(4)
Total held-to-maturity	$	1,496	$	(4)	$	—	$	—	1	$	1,496	$	(4)

Loans (Tables)

12 Months Ended

Sep. 30, 2022

Loans

Major Classifications of Loans


	September 30,
(in thousands)	2022		2021
Real estate:
Residential real estate	$	515,316	$	444,011
Multi-family		574,413		266,294
Commercial real estate		472,511		348,641
Commercial and industrial		45,758		172,274
Construction and land development		12,871		15,374
Consumer		22		11
Gross loans		1,620,891		1,246,605
Net deferred loan fees and costs		2,640		520
Total loans		1,623,531		1,247,125
Allowance for loan losses		(12,844)		(8,552)
Total loans, net	$	1,610,687	$	1,238,573

Carrying Amount for Purchased Credit Impaired Loans


	September 30,
	2022		2021
(in thousands)
Commercial real estate	$	602	$	8,324
Commercial and industrial		629		1,917
Total recorded investment	$	1,231	$	10,241

Changes in Accretable Difference on Purchased Loans


	Year Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	346	$	—
Accretable differences acquired		—		540
Accretion		(1,822)		(194)
Adjustments to accretable difference due to changes in expected cash flows		1,019		—
Other changes, net		537		—
Ending balance	$	80	$	346

Loan Portfolio Based on Internal Rating Category


	September 30, 2022
			Special
(in thousands)	Pass		Mention		Substandard		Doubtful		Total
Real Estate:
Residential	$	512,595	$	512	$	3,151	$	—	$	516,258
Multi-family		571,128		—		3,933		—		575,061
Commercial		453,321		8,085		11,578		—		472,984
Commercial and industrial		43,314		540		2,431		—		46,285
Construction and land development		10,499		2,408		—		—		12,907
Consumer		36		—		—		—		36
Total	$	1,590,893	$	11,545	$	21,093	$	—	$	1,623,531


	September 30, 2021
			Special
(in thousands)	Pass		Mention		Substandard		Doubtful		Total
Real Estate:
Residential	$	433,433	$	5,114	$	5,590	$	3	$	444,140
Multi-family		263,400		2,856		458		—		266,714
Commercial		316,894		16,274		15,639		—		348,807
Commercial and industrial		167,906		540		3,631		—		172,077
Construction and land development		13,607		1,767		—		—		15,374
Consumer		13		—		—		—		13
Total	$	1,195,253	$	26,551	$	25,318	$	3	$	1,247,125

Aging of Recorded Investment in Past Due and Non-accrual Loans by Portfolio Segment


(in thousands)	Past Due and Non-Accrual
	30 - 59		60 - 89		Greater than					Total past		Purchased
	Days		Days		89 Days					due and		Credit				Total
September 30, 2022	Past Due		Past Due		Past Due		Non-accrual			Non-accrual		Impaired⁽⁵⁾		Current		Loans
Residential real estate	$	961	$	351	$	—	$	3,151	(1)	$	4,463	$	—	$	511,795	$	516,258
Multi-family		—		—		—		2,348	(2)		2,348		—		572,713		575,061
Commercial real estate		936		—		—		5,875	(3)		6,811		602		465,571		472,984
Commercial and industrial		539		161		—		907	(4)		1,607		629		44,049		46,285
Construction and land development		—		—		—		—			—		—		12,907		12,907
Consumer		—		—		—		—			—		—		36		36
Total	$	2,436	$	512	$	—	$	12,281		$	15,229	$	1,231	$	1,607,071	$	1,623,531

(1)	Of the residential real estate non-accrual loans, $1,227 were not past due and $1,924 were greater than 89 days past due.

(2)	Multi-family non-accrual loans at September 30, 2022 were greater than 89 days past due.

(3)	Commercial real estate non-accrual loans at September 30, 2022 were greater than 89 days past due.

(4)	Commercial and industrial non-accrual loans at September 30, 2022 were greater than 89 days past due.

(5)	Purchased credit impaired loans at September 30, 2022 were greater than 89 days past due.


(in thousands)	Past Due and Non-Accrual
	30 - 59		60 - 89		Greater than					Total past		Purchased
	Days		Days		89 Days					due and		Credit				Total
September 30, 2021	Past Due		Past Due		Past Due		Non-accrual			Non-accrual		Impaired⁽⁴⁾		Current		Loans
Residential real estate	$	1,032	$	1,601	$	—	$	5,554	(1)	$	8,187	$	—	$	435,953	$	444,140
Multi-family		—		—		—		458	(2)		458		—		266,256		266,714
Commercial real estate		1,939		—		—		1,016	(3)		2,955		8,324		337,528		348,807
Commercial and industrial		3,641		—		—		—			3,641		1,917		166,519		172,077
Construction and land development		—		—		—		—			—		—		15,374		15,374
Consumer		—		—		—		—			—		—		13		13
Total	$	6,612	$	1,601	$	—	$	7,028		$	15,241	$	10,241	$	1,221,643	$	1,247,125

(1)	Of the residential real estate non-accrual loans, $1,026 were 61 days past due and $4,528 were greater than 89 days past due.

(2)	Multi-family non-accrual loans at September 30, 2021 were greater than 89 days past due.

(3)	Commercial real estate non-accrual loans at September 30, 2021 were greater than 89 days past due.

(4)	Of the total $10,241 purchased credit impaired loans, $2,519 were greater than 89 days past due.

Impaired Loans by Portfolio Segment


	September 30, 2022
	Unpaid						Interest		Average
	Principal		Recorded		Allowance		Income		Recorded
(in thousands)	Balance		Investment		Allocated		Recognized		Investment
With no related allowance recorded:
Residential real estate	$	5,394	$	5,392	$	—	$	124	$	4,646
Multi-family		2,348		2,348		—		—		1,066
Commercial real estate		5,950		5,875		—		—		3,627
Commercial and industrial		908		907		—		77		389
Total	$	14,600	$	14,522	$	—	$	201	$	9,728


	September 30, 2021
	Unpaid						Interest		Average
	Principal		Recorded		Allowance for		Income		Recorded
(in thousands)	Balance		Investment		Loan Losses		Recognized		Investment
With no related allowance recorded:
Real estate:
Residential	$	7,382	$	7,198	$	—	$	103	$	4,994
Multi-family		382		458		—		7		177
Commercial		522		517		—		3		197
Commercial and industrial		535		500		—		—		173
Total	$	8,821	$	8,673	$	—	$	113	$	5,541

Loans modified as troubled debt restructuring

The following table presents loans modified as troubled debt restructurings that occurred during the year ending September 30, 2022:


		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
(Dollars in thousands)	loans	Investment		Investment

Troubled Debt Restructurings:
Residential real estate	2	$	1,011	$	1,011

Activity in Allowance for Loan Losses by Portfolio Segment


	Year Ended September 30, 2022
							Commercial		Construction
	Residential		Multi-		Commercial		and		and Land
	Real Estate		Family		Real Estate		Industrial		Development		Consumer
	Loans		Loans		Loans		Loans		Loans		Loans		Total
(in thousands)
Allowance for loan losses:
Beginning Balance	$	4,155	$	2,433	$	1,884	$	79	$	—	$	1	$	8,552
Charge-offs		—		(66)		—		(92)		—		—		(158)
Recoveries		—		—		—		—		—		—		—
Provision (credit) for loan losses		(204)		1,941		1,823		774		115		1		4,450
Ending Balance	$	3,951	$	4,308	$	3,707	$	761	$	115	$	2	$	12,844


	Year Ended September 30, 2021
							Commercial		Construction
	Residential		Multi-		Commercial		and		and Land
	Real Estate		Family		Real Estate		Industrial		Development		Consumer
	Loans		Loans		Loans		Loans		Loans		Loans		Total
(in thousands)
Allowance for loan losses:
Beginning Balance	$	5,103	$	1,506	$	1,221	$	38	$	—	$	1	$	7,869
Charge-offs		(267)		(32)		(30)		—		—		—		(329)
Recoveries		—		—		—		12		—		—		12
Provision (credit) for loan losses		(681)		959		693		29		—		—		1,000
Ending Balance	$	4,155	$	2,433	$	1,884	$	79	$	—	$	1	$	8,552

Allowance for Loan Losses and Recorded Investment by Portfolio Segment Based on Impairment Method

The following table represents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment evaluation method:


	September 30, 2022
							Commercial		Construction
	Residential		Multi-		Commercial		and		and Land
(in thousands)	Real Estate		Family		Real Estate		Industrial		Development		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		3,951		4,308		3,707		711		115		2		12,794
Purchased-credit impaired		—		—		—		50		—		—		50
Total allowance for loan losses	$	3,951	$	4,308	$	3,707	$	761	$	115	$	2	$	12,844
Loans:
Individually evaluated for impairment	$	5,392	$	2,348	$	5,875	$	907	$	—	$	—	$	14,522
Collectively evaluated for impairment		510,866		572,713		466,507		44,749		12,907		36		1,607,778
Purchased-credit impaired		—		—		602		629		—		—		1,231
Total loans held for investment	$	516,258	$	575,061	$	472,984	$	46,285	$	12,907	$	36	$	1,623,531


	September 30, 2021
							Commercial		Construction
	Residential		Multi-		Commercial		and			and Land
(in thousands)	Real Estate		Family		Real Estate		Industrial		Development		Consumer		Total
Allowance for loan losses:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Collectively evaluated for impairment		4,155		2,433		1,884		79		—		1		8,552
Purchased-credit impaired		—		—		—		—		—		—		—
Total allowance for loan losses	$	4,155	$	2,433	$	1,884	$	79	$	—	$	1	$	8,552
Loans:
Individually evaluated for impairment	$	7,198	$	458	$	517	$	500	$	—	$	—	$	8,673
Collectively evaluated for impairment		436,942		266,256		339,966		169,660		15,374		13		1,228,211
Purchased-credit impaired		—		—		8,324		1,917		—		—		10,241
Total loans held for investment	$	444,140	$	266,714	$	348,807	$	172,077	$	15,374	$	13	$	1,247,125

Premises and Equipment (Tables)

12 Months Ended

Sep. 30, 2022

Premises and Equipment.

Components of Premises and Equipment


	September 30,
(in thousands)	2022		2021
Land	$	1,600	$	1,600
Buildings and improvements		10,862		9,974
Leasehold improvements		2,615		2,354
Furniture, fixtures and equipment		5,978		5,269
Construction in progress		111		1,124
		21,166		20,321
Less: Accumulated depreciation and amortization		(6,704)		(5,318)
Premises and equipment, net	$	14,462	$	15,003

Deposits (Tables)

12 Months Ended

Sep. 30, 2022

Deposits.

Components of Deposits


	September 30,
(in thousands)	2022		2021
Non-interest bearing:
Demand	$	219,225	$	191,537
Interest-bearing:
NOW		582,457		353,977
Money market		258,424		181,148
Savings		128,927		60,164
Time deposits $250,000 and greater		87,904		60,242
Time deposits less than $250,000		251,169		317,594
Total interest-bearing		1,308,881		973,125
Total deposits	$	1,528,106	$	1,164,662

Maturities of Time Deposits


	September 30,
(in thousands)	2022
2023	$	170,497
2024		133,445
2025		25,526
2026		3,882
2027		4,734
Thereafter		989
Total	$	339,073

- Definition

Tabular disclosure of type of deposit liability.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (e)

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(ii)

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (1)

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (1)

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (d)

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iv)

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (5)

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iii)

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (4)

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (c)

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (2)

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (3)

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)

+ Details

Borrowings (Tables)

12 Months Ended

Sep. 30, 2022

Borrowings

Contractual Maturities and Weighted Average Interest Rates of FHLB Advances


	Balance at September 30,
	2022
			Weighted
Contractual Maturity	Amount		Average Rate
Overnight	$	55,000	3.29	%

2023, rates from 0.37% to 2.96%		11,860	2.23	%
2024, rates from 0.39% to 2.53%		18,860	0.98	%
2025, rates from 0.56% to 0.59%		7,080	0.58	%
Total term advances		37,800	1.30	%
Total FHLB advances	$	92,800	2.48	%


	Balance at September 30,
	2021
			Weighted
Contractual Maturity	Amount		Average Rate
Overnight	$	—	—	%

2022, rates from 2.01% to 2.05%		4,000	2.02	%
2023, rates from 0.37% to 2.96%		12,040	2.23	%
2024, rates from 0.39% to 2.53%		18,860	0.98	%
2025, rates from 0.56% to 0.59%		7,080	0.58	%
Total term advances		41,980	1.37	%
Total FHLB advances	$	41,980	1.37	%

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2022

Goodwill and Other Intangible Assets.

Goodwill and Other Intangible Assets


	September 30,
(in thousands)	2022		2021
Goodwill at beginning of period	$	19,168	$	1,901
Acquisition		—		17,457
Measurement period adjustment for previous acquisition		—		(190)
Goodwill at end of period	$	19,168	$	19,168
Other intangible assets at beginning of period	$	480	$	22
Acquisition		—		490
Amortization		(81)		(32)
Other intangible assets at end of period	$	399	$	480

Gross Carrying Amount and Accumulated Amortization for Other Intangible Assets


	September 30,
(in thousands)	2022		2021
Gross carrying amount	$	517	$	517
Accumulated amortization		(118)		(37)
Net book value	$	399	$	480

Estimated Future Amortization Expense for Other Intangible Assets


(in thousands)
2023	$	72
2024		63
2025		55
2026		49
2027		43
Thereafter		117
Total	$	399

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2022

Income Taxes.

Components of Income Tax Expense


	Year Ended September 30,
(in thousands)	2022		2021
Current:
Federal	$	5,081	$	2,594
State		540		242
Total current		5,621		2,836
Deferred:
Federal		1,055		394
State		735		(383)
Total deferred		1,790		11
Change in valuation allowance		(472)		354
Total income tax expense	$	6,939	$	3,201

Reconciliation of Reported Income Tax Expense


	Year Ended September 30,
	2022				2021
			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	$	6,404	21.0	%	$	2,951	21.0	%
State taxes, net of federal benefit		1,156	3.8	%		48	0.3	%
Non-deductible transaction costs		(1)	—	%		204	1.5	%
Other		(148)	(0.5)	%		(356)	(2.5)	%
Change in valuation allowance		(472)	(1.5)	%		354	2.5	%
Income tax expense	$	6,939	22.8	%	$	3,201	22.8	%

Composition of Deferred Tax Assets and Liabilities


	September 30,
(in thousands)	2022		2021
Deferred tax assets:
Allowance for loan losses and other contingent liabilities	$	4,014	$	2,654
Net operating loss carryforwards		2,415		2,443
Compensation and related benefit obligations		1,323		775
Accrued SERP		1,062		1,288
Purchase accounting fair value adjustments		727		2,034
Unrealized loss on securities AFS		170		—
Organizational costs		63		153
Mortgage servicing rights		—		45
Total deferred tax assets		9,774		9,392
Deferred tax liabilities:
Deferred fees and costs		(2,718)		(883)
Depreciation		(951)		(771)
Mortgage servicing rights		(15)		—
Tax bad debt reserve		—		(204)
Unrealized gain on securities AFS		—		(70)
Other		(158)		(10)
Total deferred tax liabilities		(3,842)		(1,938)
Total		5,932		7,454
Valuation allowance		(3,424)		(3,896)
Net deferred tax asset	$	2,508	$	3,558

Equity Compensation Plans (Tables)

12 Months Ended

Sep. 30, 2022

Equity Compensation Plans

Summary of Stock Option Activity

A summary of stock option activity follows (aggregate intrinsic value in thousands):


						Weighted
		Weighted				Average
		Average		Aggregate		Remaining
	Number of	Exercise		Intrinsic		Contractual
	Options	Price		Value		Term
Outstanding, October 1, 2021	227,406	$	9.50	$	2,043	3.51 years
Granted	—		—
Exercised	—		—
Forfeited	—		—
Outstanding, September 30, 2022 ⁽¹⁾	227,406	$	9.50	$	2,298	2.45 years

(1)	All outstanding options are fully vested and exercisable

Summary of Restricted Stock Activity


		Weighted-Average
	Number of	Grant Date Fair
	Shares	Value
Unvested, October 1, 2021	—	$	—
Granted	51,097		19.73
Vested	—		—
Forfeited	(3,421)		19.73
Unvested, September 30, 2022	47,676	$	19.73

Summary of Restricted Stock Units Activity


		Weighted-Average
	Number of	Grant Date Fair
	Shares	Value
Unvested, October 1, 2021	75,833	$	19.87
Granted	278,930		19.73
Vested	(45,835)		19.62
Forfeited	(24,665)		19.71
Unvested, September 30, 2022	284,263	$	19.78

Related Party Transactions (Tables)

12 Months Ended

Sep. 30, 2022

Related Party Transactions.

Loans to Related Parties


(in thousands)
Beginning balance, October 1, 2021	$	2,490
New loans		874
Repayments		(628)
Ending balance, September 30, 2022	$	2,736

Commitments and Contingent Liabilities (Tables)

12 Months Ended

Sep. 30, 2022

Commitments and Contingent Liabilities

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

Future Minimum Rental Commitments Non-Cancelable Operating Leases


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

Regulatory Matters (Tables)

12 Months Ended

Sep. 30, 2022

Regulatory Matters

Capital Amounts and Ratios

The following table sets forth the Bank’s actual and required capital amounts (in thousands) and ratios under current regulations:


									Minimum Capital				Minimum to Be Well
									Adequacy Requirement				Capitalized Under
					Minimum Capital				with Capital				Prompt Corrective
	Actual Capital				Adequacy Requirement				Conservation Buffer				Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
September 30, 2022
Total capital to risk-weighted assets	$	191,355	16.32	%	$	93,796	8.00	%	$	123,107	10.50	%	$	117,245	10.00	%
Tier 1 capital to risk-weighted assets		178,340	15.21	%		70,347	6.00	%		99,658	8.50	%		93,796	8.00	%
Common equity tier 1 capital to risk-weighted assets		178,340	15.21	%		52,760	4.50	%		82,071	7.00	%		76,209	6.50	%
Tier 1 capital to average total assets		178,340	10.90	%		65,429	4.00	%		N/A	N/A			81,786	5.00	%

September 30, 2021
Total capital to risk-weighted assets	$	132,554	15.59	%	$	68,040	8.00	%	$	89,303	10.50	%	$	85,050	10.00	%
Tier 1 capital to risk-weighted assets		123,666	14.54	%		51,030	6.00	%		72,293	8.50	%		68,040	8.00	%
Common equity tier 1 capital to risk-weighted assets		123,666	14.54	%		38,273	4.50	%		59,535	7.00	%		55,283	6.50	%
Tier 1 capital to average total assets		123,666	9.45	%		52,338	4.00	%		N/A	N/A			65,423	5.00	%

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2022

Fair Value Measurements

Assets Measured at Fair Value on Recurring Basis


	September 30, 2022
			Fair Value Measurements Using:
			Quoted Prices In				Significant
			Active Markets		Significant Other		Unobservable
	Carrying		for Identical Assets		Observable Inputs		Inputs
(in thousands)	Amount		(Level 1)		(Level 2)		(Level 3)
Financial assets:
Available-for-sale securities:
U.S. GSE residential mortgage-backed securities	$	242	$	—	$	242	$	—
Corporate bonds		12,043		—		12,043		—
Loan servicing rights		4,353		—		—		4,353
Total	$	16,638	$	—	$	12,285	$	4,353


	September 30, 2021
			Fair Value Measurements Using:
			Quoted Prices In
			Active Markets				Significant
			for Identical		Significant Other		Unobservable
	Carrying		Assets		Observable Inputs		Inputs
(In thousands)	Amount		(Level 1)		(Level 2)		(Level 3)
Financial assets:
Available-for-sale securities:
U.S. GSE residential mortgage-backed securities	$	833	$	—	$	833	$	—
Corporate bonds		6,914		—		6,914		—
Loan servicing rights		3,690		—		—		3,690
Total	$	11,437	$	—	$	7,747	$	3,690

Changes in Mortgage Servicing Rights


	Year Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	3,690	$	155
Loan servicing rights obtained from acquisition of Savoy		—		3,777
Additions		1,158		10
Adjustment to fair value		(495)		(252)
Balance at end of period	$	4,353	$	3,690

Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value


	September 30, 2022
			Fair Value Measurements Using:
			Quoted Prices In
			Active Markets				Significant
			for Identical		Significant Other		Unobservable
	Carrying		Assets		Observable Inputs		Inputs		Total Fair
(In thousands)	Amount		(Level 1)		(Level 2)		(Level 3)		Value
Financial assets:
Cash and cash equivalents	$	149,947	$	149,947	$	—	$	—	$	149,947
Securities held-to-maturity		4,414		—		4,095		—		4,095
Loans, net		1,610,687		—		—		1,564,991		1,564,991
Accrued interest receivable		8,546		—		219		8,327		8,546

Financial liabilities:
Time deposits		339,073		—		328,964		—		328,964
Demand and other deposits		1,189,033		1,189,033		—		—		1,189,033
Borrowings		101,752		—		99,597		—		99,597
Subordinated debentures		24,568		—		24,199		—		24,199
Accrued interest payable		915		1		914		—		915


	September 30, 2021
			Fair Value Measurements Using:
			Quoted Prices In
			Active Markets				Significant
			for Identical		Significant Other		Unobservable
	Carrying		Assets		Observable Inputs		Inputs		Total Fair
(In thousands)	Amount		(Level 1)		(Level 2)		(Level 3)		Value
Financial assets:
Cash and cash equivalents	$	166,544	$	166,544	$	—	$	—	$	166,544
Securities held-to-maturity		8,611		—		8,865		—		8,865
Loans, net		1,238,573		—		—		1,278,056		1,278,056
Accrued interest receivable		9,363		—		211		9,152		9,363

Financial liabilities:
Time deposits		377,836		—		378,333		—		378,333
Demand and other deposits		786,826		786,826		—		—		786,826
Borrowings		159,642		—		159,608		—		159,608
Subordinated debentures		24,513		—		27,092		—		27,092
Accrued interest payable		1,290		1		713		576		1,290

Parent Company Only Condensed Financial Information (Tables)

12 Months Ended

Sep. 30, 2022

Parent Company Only Condensed Financial Information [Abstract]

Balance Sheets


	September 30,
(in thousands)	2022		2021
ASSETS
Cash and due from banks	$	304	$	571
Investment in Bank		197,290		146,232
Other assets		141		1,050
Total Assets	$	197,735	$	147,853

LIABILITIES AND STOCKHOLDERS' EQUITY
Subordinated debentures	$	24,568	$	24,513
Accrued interest payable		573		576
Accrued expenses and other liabilities		10		235
Total Liabilities		25,151		25,324
Total Stockholders' Equity		172,584		122,529
Total Liabilities and Stockholders' Equity	$	197,735	$	147,853

Statements of Income


	Year Ended September 30,
(in thousands)	2022		2021
Dividends received from Bank	$	400	$	—
Interest expense		(1,331)		(1,361)
Non-interest expense		(18)		—
Loss before income taxes and equity in undistributed earnings of the Bank		(949)		(1,361)
Income tax benefit		253		296
Equity in undistributed earnings of the Bank		24,252		11,916
Net income	$	23,556	$	10,851

Statements of Cash Flows


	Year Ended September 30,
(in thousands)	2022		2021
Cash flows from operating activities:
Net income	$	23,556	$	10,851
Adjustments to reconcile net income to net cash used in operating activities:
Equity in undistributed earnings of the Bank		(24,252)		(11,916)
Amortization of debt issuance costs		55		72
Decrease (increase) in other assets		909		(295)
(Decrease) increase in accrued interest payable		(3)		542
(Decrease) increase in other liabilities		(223)		235
Net cash provided by (used in) operating activities		42		(511)

Cash flows from investing activities:
Investment in Bank		(26,000)		(9,000)
Net cash used in investing activities		(26,000)		(9,000)

Cash flows from financing activities:
Proceeds from issuance of subordinated debentures, net of issuance costs		—		24,455
Repayment of note payable		—		(15,000)
Net proceeds from issuance of common stock		27,771		113
Payments related to tax withholding for equity awards		(28)		—
Cash dividends paid to common stockholders		(2,052)		—
Net cash provided by financing activities		25,691		9,568

Net (decrease) increase in cash and due from banks		(267)		57
Cash and due from banks, beginning of period		571		514
Cash and due from banks, end of period	$	304	$	571

Supplemental non-cash disclosures:
Common stock issued in acquisition	$	—	$	31,252
Stock options rolled over in acquisition		—		1,269

Earnings Per Share (Tables)

12 Months Ended

Sep. 30, 2022

Earnings Per Share

Calculations of Basic and Diluted Earnings Per Share


	Year Ended September 30,
(in thousands, except share and per share data)	2022		2021

Net income available to common stockholders	$	23,556	$	10,851
Less: Dividends paid and earnings allocated to participating securities		(903)		(218)
Income attributable to common stock	$	22,653	$	10,633
Weighted average common shares outstanding, including participating securities		6,302,328		4,669,009
Less: Weighted average participating securities		(237,259)		(93,799)
Weighted average common shares outstanding		6,065,069		4,575,210
Basic EPS	$	3.74	$	2.32

Income attributable to common stock	$	22,653	$	10,633
Weighted average common shares outstanding		6,065,069		4,575,210
Weighted average common equivalent shares outstanding		92,977		89,660
Weighted average common and equivalent shares outstanding		6,158,046		4,664,870
Diluted EPS	$	3.68	$	2.28

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Sep. 30, 2022

Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other Comprehensive Income by Component, Net of Tax


	Unrealized Gains and
	Losses on Available-
	for-Sale Debt
(in thousands)	Securities
Balance at October 1, 2021	$	256
Other comprehensive loss, before reclassification		(795)
Amount reclassified from accumulated other comprehensive income		(81)
Net current period other comprehensive loss		(876)
Balance at September 30, 2022	$	(620)



	Unrealized Gains and
	Losses on Available-
	for-Sale Debt
(in thousands)	Securities
Balance at October 1, 2020	$	156
Other comprehensive income, before reclassification		291
Amount reclassified from accumulated other comprehensive income		(191)
Net current period other comprehensive income		100
Balance at September 30, 2021	$	256

Significant Amounts Reclassified Out of Accumulated Other Comprehensive Income


	Year Ended
	September 30,				Affected Line Item in Consolidated
(in thousands)	2022		2021		Statements of Income
Realized gains on securities available-for-sale	$	105	$	240	Gain on sale of investment securities available-for-sale, net
Tax effect		24		49	Income tax expense
Net of tax	$	81	$	191

Revenue from Contracts with Customers (Tables)

12 Months Ended

Sep. 30, 2022

Revenue from Contracts with Customers [Abstract]

Sources of Non-Interest Income


	Year Ended September 30,
(in thousands)	2022		2021
Loan servicing and fee income⁽¹⁾	$	2,885	$	1,207
Service charges on deposit accounts		232		127
Net gain on sale of loans held-for-sale⁽¹⁾		5,143		1,307
Net gain on sale of investments available-for-sale⁽¹⁾		105		240
Other income⁽²⁾		507		468
Total non-interest income	$	8,872	$	3,349

(1)	Not included within the scope of ASC 606

(2)

Summary of Significant Accounting Policies - Interest-Bearing Deposits in Other Financial Institutions (Details)	12 Months Ended
	Sep. 30, 2022
Interest-Bearing Deposits in Other Financial Institutions [Abstract]
Maximum period of interest-bearing deposits in other financial institutions to mature	90 days

Summary of Significant Accounting Policies - Allowance for Loan Losses (Details)	12 Months Ended
	Sep. 30, 2022
Allowance For Loan Losses [Abstract]
Historical loss lookback period	3 years

Summary of Significant Accounting Policies - Loan Modifications Under the CARES Act (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Loan Modifications Under the CARES Act [Abstract]
Total loan modifications under CARES Act	$ 220,400
Remaining loan modifications under the CARES Act	$ 283	$ 19,500

Summary of Significant Accounting Policies - Mortgage Servicing Rights (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Mortgage Servicing Rights [Abstract]
Mortgage servicing fee income	$ 1.6	$ 0.6

Summary of Significant Accounting Policies - Premises and Equipment (Details)	12 Months Ended
	Sep. 30, 2022
Buildings [Member]
Premises and Equipment [Abstract]
Useful lives	39 years
Furniture, Fixtures and Equipment [Member] \| Minimum
Premises and Equipment [Abstract]
Useful lives	2 years
Furniture, Fixtures and Equipment [Member] \| Maximum
Premises and Equipment [Abstract]
Useful lives	10 years

Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details)	12 Months Ended
	Sep. 30, 2022
Core Deposits
Goodwill and Other Intangible Assets [Abstract]
Estimated useful life of intangible assets	10 years

Summary of Significant Accounting Policies - Operating Segments (Details)	12 Months Ended
	Sep. 30, 2022 segment
Operating Segments [Abstract]
Number of operating segment	1

Summary of Significant Accounting Policies - Supplemental Executive Retirement Plan (Details)	12 Months Ended
	Sep. 30, 2022 item
Supplemental Executive Retirement Plan [Abstract]
Number of former executives benefited	2

Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - Accounting Standards Update 2016-02 $ in Millions	Oct. 01, 2022 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase in operating assets	$ 10
Increase in operating liabilities	$ 10

Business Combinations - Fair Value of Assets Received and Liabilities Assumed (Details) - USD ($) $ / shares in Units, $ in Thousands	May 26, 2021	Apr. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Business Combination, Description [Abstract]
Common stock, par value			$ 0.01	$ 0.01
Liabilities
Goodwill			$ 19,168	$ 19,168	$ 1,901
Savoy Bank
Business Combination, Description [Abstract]
Total consideration	$ 65,512
Assets
Cash and due from banks	59,155
Investment securities available-for-sale	239
Loans held for sale	3,883
Loans held for investment	569,251
Premises and equipment, net	234
Core deposit intangible	0
Accrued interest receivable	5,171
Other assets	10,432
Total assets acquired	648,365
Liabilities
Deposits	340,215
Borrowings	258,247
Accrued interest payable	1,050
Other liabilities and accrued expenses	3,817
Total liabilities assumed	603,329
Total Consideration	65,512
Savoy Bank \| Fair Value Adjustments
Assets
Cash and due from banks	0
Investment securities available-for-sale	0
Loans held for sale	0
Loans held for investment	8,612
Premises and equipment, net	(22)
Core deposit intangible	490
Accrued interest receivable	(650)
Other assets	(2,925)
Total assets acquired	5,505
Liabilities
Deposits	2,527
Borrowings	301
Accrued interest payable	0
Other liabilities and accrued expenses	(342)
Total liabilities assumed	2,486
Savoy Bank \| As Adjusted
Business Combination, Description [Abstract]
Total consideration	65,512
Assets
Cash and due from banks	59,155
Investment securities available-for-sale	239
Loans held for sale	3,883
Loans held for investment	577,863
Premises and equipment, net	212
Core deposit intangible	490
Accrued interest receivable	4,521
Other assets	7,507
Total assets acquired	653,870
Liabilities
Deposits	342,742
Borrowings	258,548
Accrued interest payable	1,050
Other liabilities and accrued expenses	3,475
Total liabilities assumed	605,815
Net assets acquired	48,055
Total Consideration	65,512
Goodwill	$ 17,457
Savoy Bank \| Common Stock
Business Combination, Description [Abstract]
Common stock, par value		$ 1.00
Business Combination, Cash Paid Per Share		$ 3.246
Conversion of Stock, Shares Issued Per Share		0.141
Total consideration		$ 65,500
Business Acquisition, Share Price		$ 6.49
Liabilities
Total Consideration		$ 65,500

Business Combinations - Consideration Paid (Details) - USD ($) $ in Thousands			3 Months Ended	12 Months Ended
	May 26, 2021	Apr. 30, 2021	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Consideration Paid [Abstract]
Cash payments to common shareholders				$ 0	$ 32,991
Business Combination [Abstract]
Acquisition cost				$ 250	4,430
Core Deposits
Business Combination [Abstract]
Estimated useful life				10 years
Savoy Bank
Consideration Paid [Abstract]
Common stock issued (1,357,567 shares issued)	$ 31,252
Rollover Options	1,269
Cash payments to common shareholders	32,991
Total consideration paid	$ 65,512
Business Combination [Abstract]
Goodwill deductible for income tax purposes				$ 0
Increase in goodwill			$ 1,100
Acquisition cost				$ 250	$ 4,400
Savoy Bank \| Core Deposits
Business Combination [Abstract]
Estimated useful life				10 years
Savoy Bank \| Common Stock
Consideration Paid [Abstract]
Total consideration paid		$ 65,500
Business Combination [Abstract]
Common stock issued as part of consideration (in shares)	1,357,567

Business Combinations - Loans Acquired in Savoy Acquisition (Details) - Savoy Bank [Member] $ in Thousands	May 26, 2021 USD ($)
Loans Acquired in Acquisition [Abstract]
Contractually required principal and interest at acquisition	$ 14,416
Contractual cash flows not expected to be collected (non-accretable discount)	(3,467)
Expected cash flows at acquisition	10,949
Interest component of expected cash flows (accretable discount)	(540)
Fair value of acquired purchased credit impaired loans	$ 10,409

Investment Securities - Investment Securities Available for Sale and Held to Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Available for sale [Abstract]
Amortized cost	$ 13,075	$ 7,422
Gross unrealized gains		326
Gross unrealized losses	(790)	(1)
Fair value	12,285	7,747
Held to maturity [Abstract]
Amortized cost	4,414	8,611
Gross unrealized gains		258
Gross unrealized losses	(319)	(4)
Fair value	4,095	8,865
Investment Securities [Abstract]
Amortized cost	17,489	16,033
Gross unrealized gains		584
Gross unrealized losses	(1,109)	(5)
Fair value	16,380	16,612
U.S. GSE residential mortgage-backed securities
Available for sale [Abstract]
Amortized cost	375	722
Gross unrealized gains		112
Gross unrealized losses	(133)	(1)
Fair value	242	833
Held to maturity [Abstract]
Amortized cost	1,778	2,417
Gross unrealized gains		74
Gross unrealized losses	(160)
Fair value	1,618	2,491
U.S. GSE commercial mortgage-backed securities
Held to maturity [Abstract]
Amortized cost	2,636	2,694
Gross unrealized gains		175
Gross unrealized losses	(159)
Fair value	2,477	2,869
Corporate Bonds [Member]
Available for sale [Abstract]
Amortized cost	12,700	6,700
Gross unrealized gains		214
Gross unrealized losses	(657)
Fair value	$ 12,043	6,914
Held to maturity [Abstract]
Amortized cost		3,500
Gross unrealized gains		9
Gross unrealized losses		(4)
Fair value		$ 3,505

Investment Securities - Securities Portfolio Presented by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Securities Available for Sale, Amortized Cost [Abstract]
Due after five years through ten years	$ 12,700
Amortized cost	13,075	$ 7,422
Securities Available for Sale, Fair Value [Abstract]
Five to ten years	12,043
Fair value	12,285	7,747
Securities Held to Maturity, Amortized Cost [Abstract]
One to five years	0
Five to ten years	0
Amortized cost	4,414	8,611
Securities Held to Maturity, Fair Value [Abstract]
Fair value	4,095	8,865
Debt Securities, Available-for-Sale and Held-to-Maturity, after Allowance for Credit Loss [Abstract]
Amortized cost	17,489	16,033
Fair value	16,380	16,612
Investment securities pledged to secure public deposits	16,699	16,358
Holdings of securities of any one issuer, other than securities issued by U.S. Government sponsored agencies, in amount greater than 10% of shareholders' equity	0	0
Asset Pledged as Collateral without Right \| Deposits
Debt Securities, Available-for-Sale and Held-to-Maturity, after Allowance for Credit Loss [Abstract]
Investment securities pledged to secure public deposits	1,800	5,100
U.S. GSE residential mortgage-backed securities
Securities Available for Sale, Amortized Cost [Abstract]
Without single maturity date	375
Amortized cost	375	722
Securities Available for Sale, Fair Value [Abstract]
Without single maturity date	242
Fair value	242	833
Securities Held to Maturity, Amortized Cost [Abstract]
Without single maturity date	1,778
Amortized cost	1,778	2,417
Securities Held to Maturity, Fair Value [Abstract]
Without single maturity date	1,618
Fair value	1,618	2,491
U.S. GSE commercial mortgage-backed securities
Securities Held to Maturity, Amortized Cost [Abstract]
Without single maturity date	2,636
Amortized cost	2,636	2,694
Securities Held to Maturity, Fair Value [Abstract]
Without single maturity date	2,477
Fair value	$ 2,477	$ 2,869

Investment Securities - Summary of Realized Investment Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Realized Investment Gains (Losses) [Abstract]
Proceeds from sales	$ 2,105	$ 3,240
Gross realized gains on sales	105	240
Gross realized losses on sales	0	0
Total realized gains, net	105	240
Associated income tax	$ 24	$ 49

Investment Securities - Gross Unrealized Losses and Fair Values of Investment Securities (Details)	12 Months Ended
	Sep. 30, 2022 USD ($) security	Sep. 30, 2021 USD ($) security
Available for sale [Abstract]
Less than 12 months, Fair value	$ 10,995,000	$ 143,000
Less than 12 months, Gross unrealized losses	(783,000)	$ (1,000)
12 months or longer, Fair value	90,000
12 months or longer, Gross unrealized losses	$ (7,000)
Number of securities \| security	12	6
Total, Fair value	$ 11,085,000	$ 143,000
Total, Gross unrealized losses	(790,000)	(1,000)
Held to maturity [Abstract]
Less than 12 months, Fair value	4,095,000	1,496,000
Less than 12 months, Gross unrealized losses	(319,000)	$ (4,000)
12 months or longer, Fair value	0
12 months or longer, Gross unrealized losses	$ 0
Number of securities \| security	5	1
Total, Fair value	$ 4,095,000	$ 1,496,000
Total, Gross unrealized losses	(319,000)	(4,000)
Other than temporary impairment loss recognized on any securities	0	0
U.S. GSE residential mortgage-backed securities \| Residential Mortgage Backed Securities
Available for sale [Abstract]
Less than 12 months, Fair value	152,000	143,000
Less than 12 months, Gross unrealized losses	(126,000)	$ (1,000)
12 months or longer, Fair value	90,000
12 months or longer, Gross unrealized losses	$ (7,000)
Number of securities \| security	6	6
Total, Fair value	$ 242,000	$ 143,000
Total, Gross unrealized losses	(133,000)	(1,000)
Held to maturity [Abstract]
Less than 12 months, Fair value	1,618,000
Less than 12 months, Gross unrealized losses	(160,000)
12 months or longer, Fair value	0
12 months or longer, Gross unrealized losses	$ 0
Number of securities \| security	4
Total, Fair value	$ 1,618,000
Total, Gross unrealized losses	(160,000)
U.S. GSE commercial mortgage-backed securities \| Commercial Mortgage Backed Securities
Held to maturity [Abstract]
Less than 12 months, Fair value	2,477,000
Less than 12 months, Gross unrealized losses	(159,000)
12 months or longer, Fair value	0
12 months or longer, Gross unrealized losses	$ 0
Number of securities \| security	1
Total, Fair value	$ 2,477,000
Total, Gross unrealized losses	(159,000)
Corporate Bonds
Available for sale [Abstract]
Less than 12 months, Fair value	10,843,000
Less than 12 months, Gross unrealized losses	(657,000)
12 months or longer, Fair value	0
12 months or longer, Gross unrealized losses	$ 0
Number of securities \| security	6
Total, Fair value	$ 10,843,000
Total, Gross unrealized losses	$ (657,000)
Held to maturity [Abstract]
Less than 12 months, Fair value		1,496,000
Less than 12 months, Gross unrealized losses		$ (4,000)
Number of securities \| security		1
Total, Fair value		$ 1,496,000
Total, Gross unrealized losses		$ (4,000)

Loans - Classification of Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	$ 1,620,891	$ 1,246,605
Net deferred loan fees and costs	(2,640)	(520)
Total loans	1,623,531	1,247,125
Allowance for loan losses	(12,844)	(8,552)	$ (7,869)
Loans held for investment, net	1,610,687	1,238,573
Servicing of loans to others	246,000	233,200
Loans held for sale	0	0
Amount from sale of loans	80,300	46,600
Net gain on sale of loans held-for-sale(1)	$ 5,143	1,307
PPP Loans
Classification of Loans by Loan Portfolio Segment [Abstract]
Interest rate	1.00%
Amount of loans forgiven	$ 355,900
PPP Loans \| Maximum
Classification of Loans by Loan Portfolio Segment [Abstract]
Loan term	5 years
Extension to loan term	5 years
PPP Loans \| Minimum
Classification of Loans by Loan Portfolio Segment [Abstract]
Loan term	2 years
Residential real estate
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	$ 515,316	444,011
Total loans	516,258	444,140
Allowance for loan losses	(3,951)	(4,155)	(5,103)
Multi-family
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	574,413	266,294
Total loans	575,061	266,714
Allowance for loan losses	(4,308)	(2,433)	(1,506)
Commercial real estate
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	472,511	348,641
Total loans	472,984	348,807
Allowance for loan losses	(3,707)	(1,884)	(1,221)
Commercial and industrial
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	45,758	172,274
Total loans	46,285	172,077
Allowance for loan losses	(761)	(79)	(38)
Commercial and industrial \| PPP Loans
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	10,200	140,400
Construction and land development
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	12,871	15,374
Total loans	12,907	15,374
Allowance for loan losses	(115)
Consumer
Classification of Loans by Loan Portfolio Segment [Abstract]
Gross loans	22	11
Total loans	36	13
Allowance for loan losses	$ (2)	$ (1)	$ (1)

Loans - Carrying Amount for Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Carrying Amount for Purchased Credit Impaired Loans [Abstract]
Total recorded investment	$ 1,231	$ 10,241
Allowance for loan losses	12,844	8,552	$ 7,869
Purchase Credit Impaired Loans
Carrying Amount for Purchased Credit Impaired Loans [Abstract]
Allowance for loan losses	50	0
Commercial Real Estate
Carrying Amount for Purchased Credit Impaired Loans [Abstract]
Total recorded investment	602	8,324
Allowance for loan losses	3,707	1,884	1,221
Commercial and Industrial
Carrying Amount for Purchased Credit Impaired Loans [Abstract]
Total recorded investment	629	1,917
Allowance for loan losses	$ 761	$ 79	$ 38

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

Loans - Changes in Accretable Difference on Purchased Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Changes in Accretable Difference on Purchased Loans [Abstract]
Balance at beginning of period	$ 346	$ 0
Accretable differences acquired		540
Accretion	(1,822)	(194)
Adjustments to accretable difference due to changes in expected cash flows	1,019	0
Other changes, net	537	0
Ending balance	$ 80	$ 346

Loans - Loans Categorized by Class and Internally Assigned Risk Grades (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Loans Portfolio by Credit Risk Rating [Abstract]
Total	$ 1,623,531	$ 1,247,125
Pass
Loans Portfolio by Credit Risk Rating [Abstract]
Total	1,590,893	1,195,253
Special Mention
Loans Portfolio by Credit Risk Rating [Abstract]
Total	11,545	26,551
Substandard
Loans Portfolio by Credit Risk Rating [Abstract]
Total	21,093	25,318
Doubtful
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	3
Residential real estate
Loans Portfolio by Credit Risk Rating [Abstract]
Total	516,258	444,140
Residential real estate \| Pass
Loans Portfolio by Credit Risk Rating [Abstract]
Total	512,595	433,433
Residential real estate \| Special Mention
Loans Portfolio by Credit Risk Rating [Abstract]
Total	512	5,114
Residential real estate \| Substandard
Loans Portfolio by Credit Risk Rating [Abstract]
Total	3,151	5,590
Residential real estate \| Doubtful
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	3
Multi-family
Loans Portfolio by Credit Risk Rating [Abstract]
Total	575,061	266,714
Multi-family \| Pass
Loans Portfolio by Credit Risk Rating [Abstract]
Total	571,128	263,400
Multi-family \| Special Mention
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	2,856
Multi-family \| Substandard
Loans Portfolio by Credit Risk Rating [Abstract]
Total	3,933	458
Multi-family \| Doubtful
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Commercial [Member]
Loans Portfolio by Credit Risk Rating [Abstract]
Total	472,984	348,807
Commercial [Member] \| Pass
Loans Portfolio by Credit Risk Rating [Abstract]
Total	453,321	316,894
Commercial [Member] \| Special Mention
Loans Portfolio by Credit Risk Rating [Abstract]
Total	8,085	16,274
Commercial [Member] \| Substandard
Loans Portfolio by Credit Risk Rating [Abstract]
Total	11,578	15,639
Commercial [Member] \| Doubtful
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Commercial and Industrial
Loans Portfolio by Credit Risk Rating [Abstract]
Total	46,285	172,077
Commercial and Industrial \| Pass
Loans Portfolio by Credit Risk Rating [Abstract]
Total	43,314	167,906
Commercial and Industrial \| Special Mention
Loans Portfolio by Credit Risk Rating [Abstract]
Total	540	540
Commercial and Industrial \| Substandard
Loans Portfolio by Credit Risk Rating [Abstract]
Total	2,431	3,631
Commercial and Industrial \| Doubtful
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Construction and land development
Loans Portfolio by Credit Risk Rating [Abstract]
Total	12,907	15,374
Construction and land development \| Pass
Loans Portfolio by Credit Risk Rating [Abstract]
Total	10,499	13,607
Construction and land development \| Special Mention
Loans Portfolio by Credit Risk Rating [Abstract]
Total	2,408	1,767
Construction and land development \| Substandard
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Construction and land development \| Doubtful
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Consumer
Loans Portfolio by Credit Risk Rating [Abstract]
Total	36	13
Consumer \| Pass
Loans Portfolio by Credit Risk Rating [Abstract]
Total	36	13
Consumer \| Special Mention
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Consumer \| Substandard
Loans Portfolio by Credit Risk Rating [Abstract]
Total	0	0
Consumer \| Doubtful
Loans Portfolio by Credit Risk Rating [Abstract]
Total	$ 0	$ 0

Loans - Aging of Recorded Investment in Past Due and Non-accrual Loans by Portfolio Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Non-accrual	$ 12,281	$ 7,028
Total past due and non-accrual		15,241
Purchased credit impaired loans	1,231	10,241
Total	1,623,531	1,247,125
Total Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Total past due and non-accrual	15,229
30-59 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	2,436	6,612
60-89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	512	1,601
Greater than 89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Purchased credit impaired loans		2,519
Current [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	1,607,071	1,221,643
Residential real estate
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Non-accrual	3,151	5,554
Total past due and non-accrual		8,187
Purchased credit impaired loans		0
Total	516,258	444,140
Residential real estate \| Total Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Total past due and non-accrual	4,463
Residential real estate \| 30-59 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	961	1,032
Residential real estate \| 60-89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	351	1,601
Non-accrual		1,026
Residential real estate \| Greater than 89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Non-accrual	1,924	4,528
Residential real estate \| Current [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	511,795	435,953
Non-accrual	1,227
Multi-family
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Non-accrual	2,348	458
Total past due and non-accrual		458
Purchased credit impaired loans		0
Total	575,061	266,714
Multi-family \| Total Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Total past due and non-accrual	2,348
Multi-family \| 30-59 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Multi-family \| 60-89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Multi-family \| Greater than 89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Multi-family \| Current [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	572,713	266,256
Commercial [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Non-accrual	5,875	1,016
Total past due and non-accrual		2,955
Purchased credit impaired loans	602	8,324
Total	472,984	348,807
Commercial [Member] \| Total Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Total past due and non-accrual	6,811
Commercial [Member] \| 30-59 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	936	1,939
Commercial [Member] \| 60-89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Commercial [Member] \| Greater than 89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Commercial [Member] \| Current [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	465,571	337,528
Commercial and Industrial
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Non-accrual	907	0
Total past due and non-accrual		3,641
Purchased credit impaired loans	629	1,917
Total	46,285	172,077
Commercial and Industrial \| Total Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Total past due and non-accrual	1,607
Commercial and Industrial \| 30-59 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	539	3,641
Commercial and Industrial \| 60-89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	161	0
Commercial and Industrial \| Greater than 89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Commercial and Industrial \| Current [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	44,049	166,519
Construction and land development
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Non-accrual		0
Total past due and non-accrual		0
Purchased credit impaired loans		0
Total	12,907	15,374
Construction and land development \| 30-59 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Construction and land development \| 60-89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Construction and land development \| Greater than 89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Construction and land development \| Current [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	12,907	15,374
Consumer
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Non-accrual		0
Total past due and non-accrual		0
Purchased credit impaired loans		0
Total	36	13
Consumer \| 30-59 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Consumer \| 60-89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Consumer \| Greater than 89 Days Past Due [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans		0
Consumer \| Current [Member]
Aging of Recorded Investment in Past Due and Non-accrual Loans [Abstract]
Recorded total loans	$ 36	$ 13

Loans - Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
Loans - Impaired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
With no related allowance recorded [Abstract]
Unpaid principal balance	$ 14,600	$ 8,821
Recorded investment	14,522	8,673
Average recorded investment and interest income recognized [Abstract]
Interest income recognized	201	113
Average recorded investment	9,728	5,541
Residential Real Estate
With no related allowance recorded [Abstract]
Unpaid principal balance	5,394	7,382
Recorded investment	5,392	7,198
Average recorded investment and interest income recognized [Abstract]
Interest income recognized	124	103
Average recorded investment	4,646	4,994
Multi-family
With no related allowance recorded [Abstract]
Unpaid principal balance	2,348	382
Recorded investment	2,348	458
Average recorded investment and interest income recognized [Abstract]
Interest income recognized	0	7
Average recorded investment	1,066	177
Commercial Real Estate
With no related allowance recorded [Abstract]
Unpaid principal balance	5,950	522
Recorded investment	5,875	517
Average recorded investment and interest income recognized [Abstract]
Interest income recognized	0	3
Average recorded investment	3,627	197
Commercial and industrial
With no related allowance recorded [Abstract]
Unpaid principal balance	908	535
Recorded investment	907	500
Average recorded investment and interest income recognized [Abstract]
Interest income recognized	77	0
Average recorded investment	$ 389	$ 173

Loans - Troubled Debt Restructurings (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2022 USD ($) loan	Sep. 30, 2021 USD ($) loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of recorded loans classified as TDR's \| loan	7	6
Recorded investment in TDRs	$ 2,300	$ 1,600
Specific reserves allocated to troubled debt restructurings	0	0
Commitments to lend additional funds in troubled debt restructurings	$ 0	$ 0
TDR's with subsequent payment default \| loan	0	0
Threshold period for payment default	90 days
Increase in allowance for loan losses	$ 0
Charge-offs	$ 0
Number of newly added TDR's \| loan		0
Residential real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of recorded loans classified as TDR's \| loan	2
Pre-modification outstanding recorded investment	$ 1,011
Post-modification outstanding recorded investment	$ 1,011

Loans - Activity in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning balance	$ 8,552	$ 7,869
Charge-offs	(158)	(329)
Recoveries		12
Provision (credit) for loan losses	4,450	1,000
Ending balance	12,844	8,552
Residential Real Estate
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning balance	4,155	5,103
Charge-offs		(267)
Provision (credit) for loan losses	(204)	(681)
Ending balance	3,951	4,155
Multi-family
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning balance	2,433	1,506
Charge-offs	(66)	(32)
Provision (credit) for loan losses	1,941	959
Ending balance	4,308	2,433
Commercial Real Estate
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning balance	1,884	1,221
Charge-offs		(30)
Provision (credit) for loan losses	1,823	693
Ending balance	3,707	1,884
Commercial and Industrial
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning balance	79	38
Charge-offs	(92)
Recoveries		12
Provision (credit) for loan losses	774	29
Ending balance	761	79
Construction and land development
Allowance for loan losses by portfolio segment [Roll Forward]
Provision (credit) for loan losses	115
Ending balance	115
Consumer
Allowance for loan losses by portfolio segment [Roll Forward]
Beginning balance	1	1
Provision (credit) for loan losses	1
Ending balance	$ 2	$ 1

Loans - Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment by Portfolio Segment Based on Impairment Method (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Allowance for Loan Losses [Abstract]
Collectively evaluated for impairment	$ 12,794	$ 8,552
Purchased-credit impaired	50
Total allowance for loan losses	12,844	8,552	$ 7,869
Loans [Abstract]
Individually evaluated for impairment	14,522	8,673
Collectively evaluated for impairment	1,607,778	1,228,211
Purchased-credit impaired	1,231	10,241
Total loans	1,623,531	1,247,125
Residential Real Estate
Allowance for Loan Losses [Abstract]
Collectively evaluated for impairment	3,951	4,155
Total allowance for loan losses	3,951	4,155	5,103
Loans [Abstract]
Individually evaluated for impairment	5,392	7,198
Collectively evaluated for impairment	510,866	436,942
Purchased-credit impaired		0
Total loans	516,258	444,140
Multi-family
Allowance for Loan Losses [Abstract]
Collectively evaluated for impairment	4,308	2,433
Total allowance for loan losses	4,308	2,433	1,506
Loans [Abstract]
Individually evaluated for impairment	2,348	458
Collectively evaluated for impairment	572,713	266,256
Purchased-credit impaired		0
Total loans	575,061	266,714
Commercial Real Estate
Allowance for Loan Losses [Abstract]
Collectively evaluated for impairment	3,707	1,884
Total allowance for loan losses	3,707	1,884	1,221
Loans [Abstract]
Individually evaluated for impairment	5,875	517
Collectively evaluated for impairment	466,507	339,966
Purchased-credit impaired	602	8,324
Total loans	472,984	348,807
Commercial and Industrial
Allowance for Loan Losses [Abstract]
Collectively evaluated for impairment	711	79
Purchased-credit impaired	50
Total allowance for loan losses	761	79	38
Loans [Abstract]
Individually evaluated for impairment	907	500
Collectively evaluated for impairment	44,749	169,660
Purchased-credit impaired	629	1,917
Total loans	46,285	172,077
Construction and land development
Allowance for Loan Losses [Abstract]
Collectively evaluated for impairment	115
Total allowance for loan losses	115
Loans [Abstract]
Collectively evaluated for impairment	12,907	15,374
Purchased-credit impaired		0
Total loans	12,907	15,374
Consumer
Allowance for Loan Losses [Abstract]
Collectively evaluated for impairment	2	1
Total allowance for loan losses	2	1	$ 1
Loans [Abstract]
Collectively evaluated for impairment	36	13
Purchased-credit impaired		0
Total loans	$ 36	$ 13

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Premises and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Premises and Equipment [Abstract]
Premises and equipment, gross	$ 21,166	$ 20,321
Less: Accumulated depreciation and amortization	(6,704)	(5,318)
Premises and equipment, net	14,462	15,003
Depreciation and amortization	1,700	1,400
Land [Member]
Premises and Equipment [Abstract]
Premises and equipment, gross	1,600	1,600
Building and Improvements [Member]
Premises and Equipment [Abstract]
Premises and equipment, gross	10,862	9,974
Leasehold Improvements [Member]
Premises and Equipment [Abstract]
Premises and equipment, gross	2,615	2,354
Furniture, Fixtures and Equipment [Member]
Premises and Equipment [Abstract]
Premises and equipment, gross	5,978	5,269
Construction in Progress [Member]
Premises and Equipment [Abstract]
Premises and equipment, gross	$ 111	$ 1,124

Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Non-interest bearing
Demand	$ 219,225	$ 191,537
Interest-bearing
NOW	582,457	353,977
Money market	258,424	181,148
Savings	128,927	60,164
Time deposits $250,000 and greater	87,904	60,242
Time deposits less than $250,000	251,169	317,594
Total interest-bearing	1,308,881	973,125
Total deposits	1,528,106	$ 1,164,662
Maturities of Time Deposits
2023	170,497
2024	133,445
2025	25,526
2026	3,882
2027	4,734
Thereafter	989
Total	$ 339,073

Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Contractual Maturities of FHLB Advances
2023/2022	$ 11,860	$ 4,000
2024/2023	18,860	12,040
2025/2024	7,080	18,860
2025		7,080
FHLB advances	$ 92,800	$ 41,980
Weighted Average Interest Rates of FHLB Advances
2023/2022	2.23%	2.02%
2024/2023	0.98%	2.23%
2025/2024	0.58%	0.98%
2025		0.58%
Weighted average rate	2.48%	1.37%
Borrowings
Additional eligible borrowings from FHLB	$ 183,600
Short-term Debt	101,752	$ 159,642
Term Advances
Contractual Maturities of FHLB Advances
FHLB advances	$ 37,800	$ 41,980
Weighted Average Interest Rates of FHLB Advances
Weighted average rate	1.30%	1.37%
Overnight Borrowings
Contractual Maturities of FHLB Advances
FHLB advances	$ 55,000	$ 0
Weighted Average Interest Rates of FHLB Advances
Weighted average rate	3.29%
Unsecured Debt
Borrowings
Line of credit available for borrowing	$ 65,000
Borrowings outstanding	$ 0	$ 0
Minimum
Weighted Average Interest Rates of FHLB Advances
2023/2022	0.37%	2.01%
2024/2023	0.39%	0.37%
2025/2024	0.56%	0.39%
2025		0.56%
Maximum
Weighted Average Interest Rates of FHLB Advances
2023/2022	2.96%	2.05%
2024/2023	2.53%	2.96%
2025/2024	0.59%	2.53%
2025		0.59%
PPPLF
Borrowings
Short-term Debt	$ 9,000	$ 117,700
Borrowing rate of interest	0.35%
PPP Loans \| Minimum
Borrowings
Debt instrument, term	2 years
PPP Loans \| Maximum
Borrowings
Debt instrument, term	5 years
Residential and Commercial Mortgage Loans
Borrowings
Amount of collateral pledged	$ 822,200	$ 432,700

Subordinated Debentures (Details) - Subordinated Notes - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Oct. 31, 2020	Sep. 30, 2022	Sep. 30, 2021
Debt Instruments
Unamortized issuance costs		$ 0.4	$ 0.5
Issuance costs		$ 0.1	$ 0.1
Private Placement
Debt Instruments
Aggregate principal amount	$ 25.0
Debt instrument, maturity date	Dec. 31, 2030
Private Placement \| Until October 15, 2025
Debt Instruments
Borrowing rate of interest	5.00%
Private Placement \| From and Including October 15, 2025 \| Secured Overnight Financing Rate
Debt Instruments
Basis spread on variable rate		4.874%
Term of variable rate		3 months

Goodwill and Other Intangible Assets - Activity for Goodwill and Other Intangible Assets (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2022 USD ($) segment	Sep. 30, 2021 USD ($)
Goodwill.
Goodwill at beginning of period	$ 19,168	$ 1,901
Acquisition	0	17,457
Measurement period adjustment for previous acquisition		(190)
Goodwill at end of period	19,168	19,168
Other Intangible Assets
Amortization	(81)	(32)
Other intangible assets at end of period	$ 399
Impairment of Intangible Assets
Number of reporting units \| segment	1
Impairment charges	$ 0
Core Deposits
Other Intangible Assets
Other intangible assets at beginning of period	480	22
Acquisition	0	490
Amortization	(81)	(32)
Other intangible assets at end of period	$ 399	$ 480

Goodwill and Other Intangible Assets - Gross Carrying Amount and Accumulated Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Other Intangible Assets, Net
Total	$ 399
Core Deposits
Other Intangible Assets, Net
Gross carrying amount	517	$ 517
Accumulated amortization	(118)	(37)
Total	$ 399	$ 480	$ 22
Weighted-average remaining life of other intangible assets	4 years 22 days

Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Estimated Future Amortization Expense for Other Intangible Assets.
2023	$ 72
2024	63
2025	55
2026	49
2027	43
Thereafter	117
Total	$ 399

Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Current
Federal	$ 5,081	$ 2,594
State	540	242
Total current	5,621	2,836
Deferred
Federal	1,055	394
State	735	(383)
Total deferred	1,790	11
Change in valuation allowance	(472)	354
Total income tax expense	$ 6,939	$ 3,201

Income Taxes - Reconciliation of Reported Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Effective Income Tax Rate Reconciliation, Amount
Federal income tax expense computed by applying the statutory rate to income before income taxes	$ 6,404	$ 2,951
State taxes, net of federal benefit	1,156	48
Non-deductible transaction costs	(1)	204
Other	(148)	(356)
Change in valuation allowance	(472)	354
Total income tax expense	$ 6,939	$ 3,201
Effective Income Tax Rate Reconciliation, Percent of Pre-tax Earnings
Federal income tax expense computed by applying the statutory rate to income before income taxes	21.00%	21.00%
State taxes, net of federal benefit	3.80%	0.30%
Non-deductible transaction costs		1.50%
Other	(0.50%)	(2.50%)
Change in valuation allowance	(1.50%)	2.50%
Income tax expense	22.80%	22.80%

Income Taxes - Composition of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Deferred tax assets
Allowance for loan losses and other contingent liabilities	$ 4,014	$ 2,654
Net operating loss carryforwards	2,415	2,443
Compensation and related benefit obligations	1,323	775
Accrued SERP	1,062	1,288
Purchase accounting fair value adjustments	727	2,034
Unrealized loss on securities AFS	170	0
Organizational costs	63	153
Mortgage servicing rights	0	45
Total deferred tax assets	9,774	9,392
Deferred tax liabilities
Deferred loan fees/costs	(2,718)	(883)
Depreciation	(951)	(771)
Mortgage servicing rights	(15)	0
Tax bad debt reserve	0	(204)
Unrealized gain on securities AFS	0	(70)
Other	(158)	(10)
Total deferred tax liabilities	(3,842)	(1,938)
Total	5,932	7,454
Valuation allowance	(3,424)	(3,896)
Net deferred tax asset	$ 2,508	$ 3,558

Income Taxes - Net Operating Loss Carryforwards (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Federal.
Net Operating Loss Carryforwards
Net operating loss carryforwards	$ 0
State.
Net Operating Loss Carryforwards
Net operating loss carryforwards	31,000
Net operating loss begin to expire in 2025	12,400
Net operating loss begin to expire in 2036	18,600
City
Net Operating Loss Carryforwards
Net operating loss carryforwards	7,300
Net operating loss begin to expire in 2025	500
Net operating loss begin to expire in 2037	$ 6,800

Equity Compensation Plans - 2021 and 2018 Equity Compensation Plans (Details)	12 Months Ended
	Sep. 30, 2022 shares
2021 Plan
Equity Compensation Plans
Number of common shares approved for issuance (in shares)	427,500
Number of shares available for issuance (in shares)	284,472
2018 Plan
Equity Compensation Plans
Number of common shares approved for issuance (in shares)	346,000
Number of shares available for issuance (in shares)	36,935
Stock Options
Equity Compensation Plans
Number of Savoy options converted (in shares)	71,900

Equity Compensation Plans - Stock Options (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Equity Compensation Plans
Award vesting period	3 years
Contractual term	10 years
Compensation expenses	$ 0	$ 0
Number of Options
Outstanding, beginning of period (in shares)	227,406
Outstanding, end of period (in shares)	227,406	227,406
Weighted-Average Exercise Price Per Share
Outstanding, beginning of period (in dollars per share)	$ 9.50
Outstanding, end of period (in dollars per share)	$ 9.50	$ 9.50
Aggregate Intrinsic Value
Aggregate intrinsic value, outstanding	$ 2,298	$ 2,043
Weighted Average Remaining Contractual Term
Weighted-average remaining contractual term, outstanding	2 years 5 months 12 days	3 years 6 months 3 days

Equity Compensation Plans - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Restricted Stock
Number of Shares
Unvested, beginning of period (in shares)	75,833
Granted (in shares)	278,930
Vested (in shares)	(45,835)
Forfeited (in shares)	(24,665)
Unvested, end of period (in shares)	284,263	75,833
Weighted-Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share)	$ 19.87
Granted (in dollars per share)	19.73
Vested (in dollars per share)	19.62
Forfeited (in dollars per share)	19.71
Unvested, end of period (in dollars per share)	$ 19.78	$ 19.87
Compensation expenses	$ 1.5	$ 0.9
Unrealized compensation cost	$ 4.7
Weighted-average term for recognizing unrealized compensation cost	3 years 11 months 4 days
Total fair value of shares vested	$ 0.9	$ 0.9
Restricted Stock \| Three-year Vesting Period
Restricted Stock
Award vesting period	3 years
Number of Shares
Granted (in shares)	44,642
Restricted Stock \| Five-year vesting period
Restricted Stock
Award vesting period	5 years
Number of Shares
Granted (in shares)	234,288
Restricted Stock Units (RSUs)
Restricted Stock
Award vesting period	3 years
Number of Shares
Granted (in shares)	51,097	0
Forfeited (in shares)	(3,421)
Unvested, end of period (in shares)	47,676
Weighted-Average Grant Date Fair Value
Granted (in dollars per share)	$ 19.73
Forfeited (in dollars per share)	19.73
Unvested, end of period (in dollars per share)	$ 19.73
Compensation expenses	$ 0.2	$ 0.0
Unrealized compensation cost	$ 0.7
Weighted-average term for recognizing unrealized compensation cost	2 years 4 months 20 days

Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Loans and Leases Receivable, Related Parties.
Beginning balance	$ 2,490
New loans	874
Repayments	(628)
Ending balance	2,736
Deposits from principal officers, directors and affiliates	$ 12,800	$ 20,000

Commitments and Contingent Liabilities - Commitments Outstanding (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Standby Letters of Credit
Loss Contingencies [Line Items]
Variable rate loan commitments amount	$ 817	$ 786
Loan Commitments Outstanding
Loss Contingencies [Line Items]
Fixed rate loan commitments amount	9,992	61,375
Variable rate loan commitments amount	17,184	19,665
Unused Lines of Credit
Loss Contingencies [Line Items]
Variable rate loan commitments amount	$ 45,920	$ 24,639

Commitments and Contingent Liabilities - Projected Minimum Rentals (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Non-Cancelable Operating Leases
2023	$ 1,921
2024	1,948
2025	1,951
2026	1,775
2027	1,361
Thereafter	3,532
Total	12,488
Leases
Rent expense	$ 1,900	$ 1,700

Regulatory Matters (Details) $ in Thousands	12 Months Ended
Regulatory Matters (Details) $ in Thousands	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Total capital to risk-weighted assets
Actual capital, Amount	$ 191,355	$ 132,554
Actual capital, Ratio	0.1632	0.1559
Minimum capital adequacy requirement, Amount	$ 93,796	$ 68,040
Minimum capital adequacy requirement, Ratio	0.0800	0.0800
Minimum capital adequacy requirement with capital conservation buffer, Amount	$ 123,107	$ 89,303
Minimum capital adequacy requirement with capital conservation buffer, Ratio	0.1050	0.1050
Minimum to be well capitalized under prompt corrective action provisions, Amount	$ 117,245	$ 85,050
Minimum to be well capitalized under prompt corrective action provisions, Ratio	0.1000	0.1000
Tier 1 capital to risk-weighted assets
Actual capital, Amount	$ 178,340	$ 123,666
Actual capital, Ratio	0.1521	0.1454
Minimum capital adequacy requirement, Amount	$ 70,347	$ 51,030
Minimum capital adequacy requirement, Ratio	0.0600	0.0600
Minimum capital adequacy requirement with capital conservation buffer, Amount	$ 99,658	$ 72,293
Minimum capital adequacy requirement with capital conservation buffer, Ratio	0.0850	0.0850
Minimum to be well capitalized under prompt corrective action provisions, Amount	$ 93,796	$ 68,040
Minimum to be well capitalized under prompt corrective action provisions, Ratio	0.0800	0.0800
Common equity tier 1 capital to risk-weighted assets
Actual capital, Amount	$ 178,340	$ 123,666
Actual capital, Ratio	0.1521	0.1454
Minimum capital adequacy requirement, Amount	$ 52,760	$ 38,273
Minimum capital adequacy requirement, Ratio	0.0450	0.0450
Minimum capital adequacy requirement with capital conservation buffer, Amount	$ 82,071	$ 59,535
Minimum capital adequacy requirement with capital conservation buffer, Ratio	0.0700	0.0700
Minimum to be well capitalized under prompt corrective action provisions, Amount	$ 76,209	$ 55,283
Minimum to be well capitalized under prompt corrective action provisions, Ratio	0.0650	0.0650
Tier 1 capital to average total assets
Actual capital, Amount	$ 178,340	$ 123,666
Actual capital, Ratio	0.1090	0.0945
Minimum capital adequacy requirement, Amount	$ 65,429	$ 52,338
Minimum capital adequacy requirement, Ratio	0.0400	0.0400
Minimum to be well capitalized under prompt corrective action provisions, Amount	$ 81,786	$ 65,423
Minimum to be well capitalized under prompt corrective action provisions, Ratio	0.0500	0.0500
Retained earnings available to pay dividends	$ 42,200
Cash dividends to the Holding Company	400
Capital contributions to the bank	$ 26,000

Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Financial Assets
Available for sale, at fair value	$ 12,285	$ 7,747
Loan servicing rights	4,353	3,690
U.S. GSE residential mortgage-backed securities
Financial Assets
Available for sale, at fair value	242	833
Corporate Bonds
Financial Assets
Available for sale, at fair value	12,043	6,914
Recurring
Financial Assets
Total	16,638	11,437
Recurring \| U.S. GSE residential mortgage-backed securities
Financial Assets
Available for sale, at fair value	242	833
Recurring \| Corporate Bonds
Financial Assets
Available for sale, at fair value	12,043	6,914
Recurring \| Loan servicing rights
Financial Assets
Loan servicing rights	4,353	3,690
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial Assets
Total	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. GSE residential mortgage-backed securities
Financial Assets
Available for sale, at fair value	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Corporate Bonds
Financial Assets
Available for sale, at fair value	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Loan servicing rights
Financial Assets
Loan servicing rights	0	0
Recurring \| Significant Other Observable Inputs (Level 2)
Financial Assets
Total	12,285	7,747
Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. GSE residential mortgage-backed securities
Financial Assets
Available for sale, at fair value	242	833
Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate Bonds
Financial Assets
Available for sale, at fair value	12,043	6,914
Recurring \| Significant Other Observable Inputs (Level 2) \| Loan servicing rights
Financial Assets
Loan servicing rights	0	0
Recurring \| Significant Unobservable Inputs (Level 3)
Financial Assets
Total	4,353	3,690
Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. GSE residential mortgage-backed securities
Financial Assets
Available for sale, at fair value	0	0
Recurring \| Significant Unobservable Inputs (Level 3) \| Corporate Bonds
Financial Assets
Available for sale, at fair value	0	0
Recurring \| Significant Unobservable Inputs (Level 3) \| Loan servicing rights
Financial Assets
Loan servicing rights	$ 4,353	$ 3,690

Fair Value Measurements - Significant Inputs Utilized in Cash Flow Models (Details) - Significant Unobservable Inputs (Level 3)	Sep. 30, 2022 Y	Sep. 30, 2021 Y
Discount Rate \| Minimum
Fair Value Hierarchy
Servicing rights, measurement input	0.120	0.120
Discount Rate \| Minimum \| SBA Loans
Fair Value Hierarchy
Servicing rights, measurement input	0.0578	0.0464
Discount Rate \| Maximum
Fair Value Hierarchy
Servicing rights, measurement input	0.145	0.145
Discount Rate \| Maximum \| SBA Loans
Fair Value Hierarchy
Servicing rights, measurement input	0.2672	0.2181
Prepayment Rate
Fair Value Hierarchy
Servicing rights, measurement input	0.2625
Prepayment Rate \| Minimum
Fair Value Hierarchy
Servicing rights, measurement input		0.2418
Prepayment Rate \| Minimum \| SBA Loans
Fair Value Hierarchy
Servicing rights, measurement input	0.0842	0.1187
Prepayment Rate \| Maximum
Fair Value Hierarchy
Servicing rights, measurement input		0.2433
Prepayment Rate \| Maximum \| SBA Loans
Fair Value Hierarchy
Servicing rights, measurement input	0.2400	0.2626
Weighted Average Life \| Minimum
Fair Value Hierarchy
Servicing rights, measurement input	1.2	1.96
Weighted Average Life \| Minimum \| SBA Loans
Fair Value Hierarchy
Servicing rights, measurement input	1.47	0.39
Weighted Average Life \| Maximum
Fair Value Hierarchy
Servicing rights, measurement input	3.0	3.3
Weighted Average Life \| Maximum \| SBA Loans
Fair Value Hierarchy
Servicing rights, measurement input	5.79	5.85

Fair Value Measurements - Changes in Mortgage Servicing Rights (Details) - Loan servicing rights - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Changes in Mortgage Servicing Rights
Beginning balance	$ 3,690	$ 155
Loan servicing rights obtained from acquisition of Savoy	0	3,777
Additions	1,158	10
Adjustment to fair value	(495)	(252)
Ending balance	$ 4,353	$ 3,690

Fair Value Measurements - Assets Measured at Fair Value on Non-recurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Assets Measured at Fair Value on Non-recurring Basis
Assets measured at fair value	$ 0	$ 0
Liabilities measured at fair value	$ 0	$ 0

Fair Value Measurements - Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Carrying Amount
Financial Assets
Cash and cash equivalents	$ 149,947	$ 166,544
Securities held to maturity	4,414	8,611
Loans, net	1,610,687	1,238,573
Accrued interest receivable	8,546	9,363
Financial Liabilities
Time deposits	339,073	377,836
Demand and other deposits	1,189,033	786,826
Borrowings	101,752	159,642
Subordinated debentures	24,568	24,513
Accrued interest payable	915	1,290
Total Fair Value
Financial Assets
Cash and cash equivalents	149,947	166,544
Securities held to maturity	4,095	8,865
Loans, net	1,564,991	1,278,056
Accrued interest receivable	8,546	9,363
Financial Liabilities
Time deposits	328,964	378,333
Demand and other deposits	1,189,033	786,826
Borrowings	99,597	159,608
Subordinated debentures	24,199	27,092
Accrued interest payable	915	1,290
Total Fair Value \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial Assets
Cash and cash equivalents	149,947	166,544
Securities held to maturity	0	0
Loans, net	0
Accrued interest receivable	0	0
Financial Liabilities
Time deposits	0	0
Demand and other deposits	1,189,033	786,826
Borrowings	0	0
Subordinated debentures	0
Accrued interest payable	1	1
Total Fair Value \| Significant Other Observable Inputs (Level 2)
Financial Assets
Cash and cash equivalents	0	0
Securities held to maturity	4,095	8,865
Loans, net	0
Accrued interest receivable	219	211
Financial Liabilities
Time deposits	328,964	378,333
Demand and other deposits	0	0
Borrowings	99,597	159,608
Subordinated debentures	24,199	27,092
Accrued interest payable	914	713
Total Fair Value \| Significant Unobservable Inputs (Level 3)
Financial Assets
Cash and cash equivalents	0	0
Securities held to maturity	0	0
Loans, net	1,564,991	1,278,056
Accrued interest receivable	8,327	9,152
Financial Liabilities
Time deposits	0	0
Demand and other deposits	0	0
Borrowings	0	0
Subordinated debentures	0
Accrued interest payable	$ 0	$ 576

Parent Company Only Condensed Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
ASSETS [Abstract]
Cash and due from banks	$ 9,934	$ 8,302
Other assets	3,565	3,957
TOTAL ASSETS	1,840,058	1,484,641
LIABILITIES AND STOCKHOLDERS' EQUITY [Abstract]
Subordinated debentures	24,568	24,513
Accrued interest payable	915	1,290
TOTAL LIABILITIES	1,667,474	1,362,112
TOTAL STOCKHOLDERS' EQUITY	172,584	122,529	$ 78,043
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	1,840,058	1,484,641
Parent Company [Member]
ASSETS [Abstract]
Cash and due from banks	304	571
Investment in Bank	197,290	146,232
Other assets	141	1,050
TOTAL ASSETS	197,735	147,853
LIABILITIES AND STOCKHOLDERS' EQUITY [Abstract]
Subordinated debentures	24,568	24,513
Accrued interest payable	573	576
Accrued expenses and other liabilities	10	235
TOTAL LIABILITIES	25,151	25,324
TOTAL STOCKHOLDERS' EQUITY	172,584	122,529
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 197,735	$ 147,853

Parent Company Only Condensed Financial Information - Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statements of Income [Abstract]
Interest income	$ 68,429	$ 48,675
Interest Expense	7,175	6,967
Noninterest Expense	35,181	30,005
Income before income tax expense	30,495	14,052
Income tax benefit	(6,939)	(3,201)
NET INCOME	23,556	10,851
Parent Company [Member]
Statements of Income [Abstract]
Dividends received from Bank	400	0
Interest Expense	1,331	1,361
Noninterest Expense	(18)	0
Income before income tax expense	(949)	(1,361)
Income tax benefit	253	296
Equity in undistributed earnings of the Bank	24,252	11,916
NET INCOME	$ 23,556	$ 10,851

Parent Company Only Condensed Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities [Abstract]
Net income	$ 23,556	$ 10,851
Adjustments to reconcile net income to net cash used in operating activities:
Amortization of debt issuance costs	55	72
Decrease (increase) in other assets	(5)	1,398
(Decrease) increase in accrued interest payable	(375)	(134)
(Decrease) increase in other liabilities	128	239
Net cash provided by operating activities	25,049	13,192
Cash flows from investing activities [Abstract]
Net cash (used in) provided by investing activities	(374,146)	89,850
Cash flows from financing activities [Abstract]
Proceeds from issuance of subordinated debentures, net of issuance costs	0	24,455
Repayment of note payable	0	(15,000)
Net proceeds from issuance of common stock	27,771	113
Payments related to tax withholding for equity awards	(28)	0
Cash dividends paid to common stockholders	(2,052)	0
Net cash provided by (used in) financing activities	332,500	(16,707)
(Decrease) increase in cash and cash equivalents	(16,597)	86,335
Cash and cash equivalents, beginning of period	166,544	80,209
Cash and cash equivalents, end of period	149,947	166,544
Supplemental non-cash disclosures [Abstract]
Common stock issued in acquisition	0	31,252
Parent Company [Member]
Cash flows from operating activities [Abstract]
Net income	23,556	10,851
Adjustments to reconcile net income to net cash used in operating activities:
Equity in undistributed earnings of the bank	(24,252)	(11,916)
Amortization of debt issuance costs	55	72
Decrease (increase) in other assets	909	(295)
(Decrease) increase in accrued interest payable	(3)	542
(Decrease) increase in other liabilities	(223)	235
Net cash provided by operating activities	42	(511)
Cash flows from investing activities [Abstract]
Investment in Bank	(26,000)	(9,000)
Net cash (used in) provided by investing activities	(26,000)	(9,000)
Cash flows from financing activities [Abstract]
Proceeds from issuance of subordinated debentures, net of issuance costs	0	24,455
Repayment of note payable	0	(15,000)
Net proceeds from issuance of common stock	27,771	113
Payments related to tax withholding for equity awards	(28)	0
Cash dividends paid to common stockholders	(2,052)	0
Net cash provided by (used in) financing activities	25,691	9,568
(Decrease) increase in cash and cash equivalents	(267)	57
Cash and cash equivalents, beginning of period	571	514
Cash and cash equivalents, end of period	304	571
Supplemental non-cash disclosures [Abstract]
Common stock issued in acquisition	0	31,252
Stock options rolled over in acquisition	$ 0	$ 1,269

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Basic EPS
Net income available to common stockholders	$ 23,556	$ 10,851
Less: Dividends paid and earnings allocated to participating securities	(903)	(218)
Income attributable to common stock	$ 22,653	$ 10,633
Weighted average common shares outstanding, including participating securities (in shares)	6,302,328	4,669,009
Less: Weighted average participating securities (in shares)	(237,259)	(93,799)
Weighted average common shares outstanding (in shares)	6,065,069	4,575,210
Basic EPS (in dollars per share)	$ 3.74	$ 2.32
Diluted EPS
Income attributable to common stock	$ 22,653	$ 10,633
Weighted average common shares outstanding (in shares)	6,065,069	4,575,210
Weighted average common equivalent shares outstanding (in shares)	92,977	89,660
Weighted average common and equivalent shares outstanding (in shares)	6,158,046	4,664,870
Diluted EPS (in dollars per share)	$ 3.68	$ 2.28
Antidilutive stock options (in shares)	0	0

Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (loss) by Component, Net of Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Changes in Other Comprehensive Income by Component, Net of Tax [Roll Forward]
Balance	$ 122,529	$ 78,043
Net current period other comprehensive income (loss)	(876)	100
Balance	172,584	122,529
Accumulated Other Comprehensive Income [Member]
Changes in Other Comprehensive Income by Component, Net of Tax [Roll Forward]
Balance	256	156
Net current period other comprehensive income (loss)	(876)	100
Balance	(620)	256
Unrealized Gains and Losses on Available-for-Sale Debt Securities
Changes in Other Comprehensive Income by Component, Net of Tax [Roll Forward]
Balance	256	156
Other comprehensive income (loss)	(795)	291
Amount reclassified from accumulated other comprehensive income	(81)	(191)
Net current period other comprehensive income (loss)	876	100
Balance	$ (620)	$ 256

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI https://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Accumulated Other Comprehensive Income (Loss) - Reclassification Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Significant amounts reclassified out of accumulated other comprehensive income [Abstract]
Realized gains on securities available-for-sale	$ 105	$ 240
Tax effect	6,939	3,201
Unrealized Gains and Losses on Available-for-Sale Debt Securities
Significant amounts reclassified out of accumulated other comprehensive income [Abstract]
Net of tax	81	191
Amount Reclassified from Accumulated Other Comprehensive Income [Member] \| Unrealized Gains and Losses on Available-for-Sale Debt Securities
Significant amounts reclassified out of accumulated other comprehensive income [Abstract]
Realized gains on securities available-for-sale	105	240
Tax effect	(24)	(49)
Net of tax	$ 81	$ 191

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Non-Interest Income [Abstract]
Net gain on sale of loans held-for-sale(1)	$ 5,143	$ 1,307
Net gain on sale of investments available-for-sale(1)	105	240
Other income	507	468
Total non-interest income	8,872	3,349
Merchant card processing fees	33	9
Recoveries on acquired loans, included in other income	474	459
Loan Fees and Service Charges [Member]
Non-Interest Income [Abstract]
Loan servicing and fee income(1)	2,885	1,207
Service Charges on Deposit Accounts [Member]
Non-Interest Income [Abstract]
Service charges on deposit accounts	$ 232	$ 127