Borrowed Funds |
9 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Debt Disclosure [Abstract] | |
| Borrowed Funds | BORROWED FUNDS At June 30, 2026 and September 30, 2025, the Bank had an interest rate swap agreement with a notional amount of $100.0 million in order to hedge the variable cash flows associated with $100.0 million of adjustable-rate FHLB advances. At June 30, 2026 and September 30, 2025, the interest rate swap agreement had an average remaining term to maturity of 1.9 years and 2.7 years, respectively. The interest rate swap was designated as a cash flow hedge and involved the receipt of variable amounts from a counterparty in exchange for the Bank making fixed-rate payments over the life of the interest rate swap agreement. At June 30, 2026 and September 30, 2025, the interest rate swap was in a gain position with a fair value of $1.9 million and $926 thousand, respectively, which was reported in on the consolidated balance sheet. During the three and nine months ended June 30, 2026, $130 thousand and $472 thousand, respectively, was reclassified from AOCI as a decrease to interest expense. During the three and nine months ended June 30, 2025, $557 thousand and $1.8 million, respectively, was reclassified from AOCI as a decrease to interest expense. At June 30, 2026, the Company estimated that $1.0 million of interest expense associated with the interest rate swap would be reclassified from AOCI as an increase to interest expense on FHLB borrowings during the next 12 months. The Bank has minimum collateral posting thresholds with its derivative counterparties and posts collateral on a daily basis. The Bank held cash collateral of $1.9 million and $920 thousand at June 30, 2026 and September 30, 2025, respectively. During the nine months ended June 30, 2026, the Bank prepaid $425.0 million of fixed-rate advances with a weighted average effective rate of 4.32% and a weighted average life ("WAL") of 0.8 years and replaced them with $425.0 million of fixed-rate advances with a weighted average effective rate of 3.79% and a WAL of 2.3 years. This transaction resulted in prepayment fees of $2.1 million which will be recognized in interest expense over the life of the new FHLB advances.
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