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Fair Value Measurements
 3 Months Ended
Dec. 31, 2023
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 broad 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 that 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 MBS are based upon 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 December 31, 2023 and September 30, 2023. The Company's assets measured at estimated fair value on a recurring basis at December 31, 2023 and September 30, 2023 were as follows (dollars in thousands):
December 31, 2023Estimated Fair Value 
 Level 1Level 2Level 3Total
Available for sale investment securities    
   MBS: U.S. government agencies$— $40,446 $— $40,446 
Investments in equity securities
   Mutual funds848 — — 848 
Total$848 $40,446 $— $41,294 
September 30, 2023Estimated Fair Value 
 Level 1Level 2Level 3Total
Available for sale investment securities    
   MBS: U.S. government agencies$— $41,771 $— $41,771 
Investments in equity securities
   Mutual funds811 — — 811 
Total$811 $41,771 $— $42,582 

There were no transfers among Level 1, Level 2 and Level 3 during the three months ended December 31, 2023 and the year ended September 30, 2023.

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 at the reporting date, where applicable. Accordingly, collateral dependent loans are classified within level 3 of the fair value hierarchy.

Impaired Loans: Prior to the adoption of CECL, the estimated fair value of impaired loans is calculated using the collateral value method or on a discounted cash flow basis.  The specific reserve for collateral dependent impaired loans is based on the estimated fair value of the collateral less estimated costs to sell, if applicable.  In some cases, adjustments are made to the appraised values due to various factors including age of the appraisal, age of the comparable collateral included in the appraisal and known changes in the market and in the underlying collateral. Such adjustments may be significant and typically result in a Level 3 classification of the inputs for determining fair value. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.
The following table summarizes the balances of assets measured at estimated fair value on a non-recurring basis at December 31, 2023 and September 30, 2023 (dollars in thousands):
 Estimated Fair Value
December 31, 2023Level 1Level 2Level 3
Individually evaluated loans:   
  Commercial business loans$— $— $1,401 
Total$— $— $1,401 


 Estimated Fair Value
September 30, 2023Level 1Level 2Level 3
Impaired loans:   
  Commercial business loans$— $— $122 
Total$— $— $122 

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis as of December 31, 2023 and September 30, 2023 (dollars in thousands):
  Valuation
Technique(s)		 Unobservable Input(s)Range
Individually evaluated and impaired loansMarket approachAppraised value less estimated selling costsN/A

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 which are not defined as financial instruments but for which may have significant value. The Company does not believe that it would be practicable to estimate a representative fair value for these types of items as of December 31, 2023 and September 30, 2023. 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, in accordance with GAAP, 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 December 31, 2023 and September 30, 2023 (dollars in thousands):
 December 31, 2023
  Fair Value Measurements Using:
 Recorded
Amount		 Estimated Fair Value 
Level 1		 
Level 2		 
Level 3
Financial assets     
Cash and cash equivalents$158,021 $158,021 $158,021 $— $— 
CDs held for investment12,449 12,449 12,449 — — 
Investment securities306,531 294,807 162,401 132,406 — 
Investments in equity securities848 848 848 — — 
FHLB stock2,001 2,001 2,001 — — 
Other investments3,000 3,000 3,000 — — 
Loans held for sale1,425 1,426 1,426 — — 
Loans receivable, net1,336,283 1,286,383 — — 1,286,383 
     Accrued interest receivable6,731 6,731 6,731 — — 
Financial liabilities     
Certificates of deposit318,907 317,531 — — 317,531 
FHLB borrowings20,000 19,877 — — 19,877 
Accrued interest payable1,683 1,683 1,683 — — 
 September 30, 2023
  Fair Value Measurements Using:
 Recorded
Amount		 Estimated Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets     
Cash and cash equivalents$128,721 $128,721 $128,721 $— $— 
CDs held for investment15,188 15,188 15,188 — — 
Investment securities311,989 295,538 161,538 134,000 — 
Investments in equity securities811 811 811 — — 
FHLB stock3,602 3,602 3,602 — — 
Other investments3,000 3,000 3,000 — — 
Loans held for sale400 407 407 — — 
Loans receivable, net1,302,305 1,246,538 — — 1,246,538 
     Accrued interest receivable6,004 6,004 6,004 — — 
Financial liabilities     
Certificates of deposit300,100 297,542 — — 297,542 
FHLB borrowings35,000 34,747 — — 34,747 
Accrued interest payable1,397 1,397 1,397 — —