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UNREALIZED LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE

9 Months Ended

Jun. 30, 2025

Unrealized Losses on Investment Securities Available-for-Sale [Abstract]

UNREALIZED LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE

NOTE H – UNREALIZED LOSSES ON INVESTMENT SECURITIES AVAILABLE-FOR-SALE

The Company recognizes an allowance for credit losses (“ACL”) on debt securities in earnings through a provision for credit losses while non credit-related impairment on debt securities not expected to be sold are recognized in other comprehensive income.

The Company reviews its investment portfolio on a quarterly basis for indications of credit losses. This review includes analyzing the extent to which the fair value has been lower than the amortized cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and the intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in the market. The Company evaluates its intent and ability to hold debt securities based upon its investment strategy for the particular type of security and its cash flow needs, liquidity position, capital adequacy and interest rate risk position. In addition, the risk of future credit losses may be influenced by prolonged recession in the U.S. economy, changes in real estate values and interest deferrals.

Investment securities with fair values greater than their amortized cost contain unrealized gains. Investment securities with fair values less than their amortized cost contain unrealized losses. Details of available-for-sale securities with unrealized losses at June 30, 2025 and September 30, 2024 are as following tables:

			Less Than 12 Months				12 Months Or Greater					Total
	Number of		Fair		Unrealized		Fair		Unrealized			Fair		Unrealized
	Securities		Value		Losses		Value		Losses			Value		Losses
			(Dollars in thousands)
June 30, 2025
Securities available-for-sale
Obligations of U.S. government agencies:
Mortgage-backed securities - residential		1	$	—	$	—	$	82	$	(9	)	$	82	$	(9	)
Obligations of U.S. government-sponsored enterprises
Mortgage-backed securities - residential		9		1,857		—		7,018		(1,189	)		8,875		(1,189	)
Total		10	$	1,857	$	—	$	7,100	$	(1,198	)	$	8,957	$	(1,198	)

			Less Than 12 Months				12 Months Or Greater					Total
	Number of		Fair		Unrealized		Fair		Unrealized			Fair		Unrealized
	Securities		Value		Losses		Value		Losses			Value		Losses
			(Dollars in thousands)
September 30, 2024
Securities available-for-sale
Obligations of U.S. government agencies:
Mortgage-backed securities - residential		1	$	—	$	—	$	88	$	(6	)	$	88	$	(6	)
Obligations of U.S. government-sponsored enterprises
Mortgage-backed securities - residential		8		—		—		7,550		(1,202	)		7,550		(1,202	)
Total		9	$	—	$	—	$	7,638	$	(1,208	)	$	7,638	$	(1,208	)

The investment securities listed above currently have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated these securities and determined that the decline in value was primarily related to fluctuations in the interest rate environment and were not related to any company or industry specific event.

The Company anticipates full recovery of amortized costs with respect to these securities. The Company does not intend to sell these securities and has determined that it is not more likely than not that the Company would be required to sell these securities prior to maturity or market price recovery. For individual debt securities classified as available-for-sale, we determine whether a decline in fair value below the amortized cost has resulted from a credit loss or other factors. If the decline in fair value is due to credit, we will record the portion of the impairment loss relating to credit through an ACL. Impairment that has not been recorded through an ACL is recorded through other comprehensive income, net of applicable taxes.