v3.26.1
Fair Value Measurements
 9 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
Fair value is defined under GAAP as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP also establishes a fair value hierarchy which prioritizes the valuation inputs into three levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of three levels. These levels are:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2: Significant observable inputs other than quoted prices included within Level 1, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions market participants would use in pricing an asset or liability based on the best information available in the circumstances.

The Company's assets measured at fair value on a recurring basis consist of investment securities available for sale and investments in equity securities. The estimated fair values of available for sale investment securities are based upon quoted market prices (Level 1) and market prices of similar securities or observable inputs (Level 2). The estimated fair values of mutual funds are based upon quoted market prices (Level 1).

The Company had no liabilities measured at fair value on a recurring basis at June 30, 2026 and September 30, 2025. The Company's assets measured at estimated fair value on a recurring basis at June 30, 2026 and September 30, 2025, were as follows (dollars in thousands):
June 30, 2026Estimated Fair Value
Level 1Level 2Level 3Total
Available for sale investment securities
  MBS: U.S. government agencies$— $90,484 $— $90,484 
Investments in equity securities
   Mutual funds858 — — 858 
Total$858 $90,484 $— $91,342 
September 30, 2025Estimated Fair Value
Level 1Level 2Level 3Total
Available for sale investment securities
U.S. government securities$4,968 $— $— $4,968 
  MBS: U.S. government agencies— 73,272 — 73,272 
Investments in equity securities
   Mutual funds864 — — 864 
Total$5,832 $73,272 $— $79,104 

There were no transfers among Level 1, Level 2 and Level 3 during the nine months ended June 30, 2026 and the year ended September 30, 2025.

The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP.  These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period.

The Company uses the following methods and significant assumptions to estimate fair value on a non-recurring basis:

Individually Evaluated Collateral-Dependent Loans: Loans for which repayment is substantially expected to be provided through the operation or sale of collateral are considered collateral dependent, and are valued based on the estimated fair value of the collateral, less estimated costs to sell, where applicable. Accordingly, collateral dependent loans are classified within level 3 of the fair value hierarchy.

OREO and Other Repossessed Assets, net:  OREO and other repossessed assets are recorded at estimated fair value less estimated costs to sell.  Estimated fair value is generally determined by management based on a number of factors, including
third-party appraisals of estimated fair value in an orderly sale.  Estimated costs to sell are based on standard market factors.  The valuation of OREO and other repossessed assets is subject to significant external and internal judgment (Level 3).


The following table summarizes the balances of assets measured at estimated fair value on a non-recurring basis at June 30, 2026 and September 30, 2025 (dollars in thousands):
Estimated Fair ValueTotal Estimated
June 30, 2026Level 1Level 2Level 3Fair Value
Individually evaluated collateral-dependent loans:
Mortgage loans:
Commercial real estate$— $— $3,830 $3,830 
  Commercial business loans— — 667 667 
Total loans— — 4,497 4,497 
OREO and other repossessed assets— — 221 221 
Total$— $— $4,718 $4,718 

Estimated Fair ValueTotal Estimated
September 30, 2025Level 1Level 2Level 3Fair Value
Individually evaluated collateral-dependent loans:
  Commercial business loans$— $— $177 $177 
Total loans— — 177 177 
OREO and other repossessed assets— — 221 221 
Total$— $— $398 $398 


The following table presents quantitative information about Level 3 inputs for financial instruments measured at fair value on a non-recurring basis as of June 30, 2026 and September 30, 2025:

 Valuation
Technique(s)		 Significant Unobservable Input(s)Range
Individually evaluated collateral-dependent loansMarket approachAppraised value less estimated selling costs8%
OREO and other repossessed assetsMarket approachLower of appraised value or listing price less estimated selling costs8%

GAAP requires disclosure of estimated fair values for certain financial instruments. Such estimates are subjective in nature, and significant judgment is required regarding the risk characteristics of various financial instruments at a discrete point in time. Therefore, such estimates could vary significantly if assumptions regarding uncertain factors were to change. In addition, as the Company normally intends to hold the majority of its financial instruments until maturity, it does not expect to realize many of the estimated amounts disclosed. The disclosures also do not include estimated fair value amounts for certain items that are not defined as financial instruments but which may have significant value. The Company does not believe that it would be practicable to estimate a fair value for these types of items as of June 30, 2026 and September 30, 2025. Because GAAP excludes certain items from fair value disclosure requirements, any aggregation of the fair value amounts presented would not represent the underlying value of the Company. Additionally, the Company uses the exit price notion in calculating the fair values of financial instruments not measured at fair value on a recurring basis.
The recorded amounts and estimated fair values of financial instruments were as follows as of June 30, 2026 and September 30, 2025 (dollars in thousands):
June 30, 2026
Fair Value Measurements Using:
Recorded
Amount		 Estimated Fair Value
Level 1
Level 2
Level 3
Financial assets
Cash and cash equivalents$246,082 $246,082 $246,082 $— $— 
CDs held for investment7,964 7,964 7,964 — — 
Investment securities208,071 203,727 54,676 149,051 — 
Investments in equity securities858 858 858 — — 
FHLB stock1,653 1,653 1,653 — — 
Other investments3,000 3,000 3,000 — — 
Loans held for sale2,774 2,820 2,820 — — 
Loans receivable, net1,495,651 1,485,508 — — 1,485,508 
     Accrued interest receivable7,321 7,321 7,321 — — 
Financial liabilities
Certificates of deposit448,226 447,554 — — 447,554 
FHLB borrowings10,000 9,997 — — 9,997 
Accrued interest payable1,790 1,790 1,790 — — 

September 30, 2025
Fair Value Measurements Using:
Recorded
Amount		 Estimated Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets
Cash and cash equivalents$243,428 $243,428 $243,428 $— $— 
CDs held for investment7,217 7,217 7,217 — — 
Investment securities215,101 210,574 71,870 138,704 — 
Investments in equity securities864 864 864 — — 
FHLB stock2,045 2,045 2,045 — — 
Other investments3,000 3,000 3,000 — — 
Loans held for sale1,127 1,159 1,159 — — 
Loans receivable, net1,463,590 1,441,850 — — 1,441,850 
     Accrued interest receivable7,393 7,393 7,393 — — 
Financial liabilities
Certificates of deposit442,521 442,024 — — 442,024 
FHLB borrowings20,000 20,009 — — 20,009 
Accrued interest payable1,963 1,963 1,963 — —