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INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes were as follows:

			Fiscal Year Ended September 30,
(Dollars in thousands)			2025						2024						2023
Federal:
Current			$	10,407					$	9,770					$	8,792
Deferred			15,754						13,276						(6,688)
			26,161						23,046						2,104
State:
Current			9,060						8,172						7,935
Deferred			1,045						2,890						(452)
			10,105						11,062						7,483
Income tax expense			$	36,266					$	34,108					$	9,587

Components of Net Deferred Tax Asset (Liability)

The tax effects of the Company's temporary differences that give rise to significant portions of its deferred tax assets and liabilities were:

(Dollars in thousands)			September 30, 2025						September 30, 2024
Deferred tax assets:
Allowance for credit losses			$	12,938					$	17,647
Deferred compensation			4,511						4,351
Stock based compensation			2,084						2,402
Valuation adjustments			78						175
General business credits(1)			49,070						55,471
Accrued expenses			2,807						2,763
Lease liability			5,930						6,503
Net unrealized loss on securities available for sale			47,167						50,819
Premises and equipment			4,998						3,939
Deferred income			2,386						—
Other assets			2,276						3,940
			134,245						148,010
Deferred tax liabilities:
Intangibles			(8,366)						(7,859)
Leased assets			(80,012)						(76,016)
Right-of-use assets			(5,678)						(6,218)
Life insurance redemption			(3,493)						—
Other liabilities			(466)						(1,346)
			(98,015)						(91,439)
Net deferred tax assets			$	36,230					$	56,571

(1) The general business credits are investment tax credits generated from qualified solar energy property placed in service during the fiscal years ended September 30, 2025 and 2024. These credits will begin to expire on September 30, 2041.

Reconciliation of Total Income Tax Expense

The Company's effective tax rate is calculated by dividing income tax expense by income before income tax expense.

			Fiscal Year Ended September 30,
			2025									2024									2023
(Dollars in thousands)			Amount			Rate						Amount			Rate						Amount			Rate
Statutory federal income tax expense and rate			$	46,841		21.0		%				$	45,910		21.0		%				$	32,559		21.0		%
Change in tax rate resulting from:
State income taxes net of federal benefits			7,983			3.6		%				8,678			4.0		%				5,999			3.9		%
162(m) disallowance			1,540			0.7		%				1,874			0.9		%				919			0.6		%
Tax exempt income			(636)			(0.3)		%				(690)			(0.3)		%				(783)			(0.5)		%
General business credits			(20,773)			(9.3)		%				(21,132)			(9.7)		%				(28,633)			(18.5)		%
Life insurance redemption			3,116			1.4		%				—			—		%				—			—		%
Other, net			(1,805)			(0.8)		%				(532)			(0.2)		%				(474)			(0.3)		%
Income tax expense			$	36,266		16.3		%				$	34,108		15.7		%				$	9,587		6.2		%

Reconciliation of Liabilities Associated with Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits follows:

(Dollars in thousands)			September 30, 2025						September 30, 2024
Balance at beginning of fiscal year			$	577					$	521
Additions (reductions) for tax positions related to prior years			(78)						56
Balance at end of fiscal year			$	499					$	577

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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