What changed in this filing

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Item 1. Financial Statements

2022-08-15 compared with 2022-05-12 · 139 added, 117 removed, 668 unchanged (28% of the section changed)

8 unchanged sentences

Investment securities - available for sale, at fair value

Investment securities - held to maturity, at amortized cost (fair value of $ 79,306 and $ 57,282 at March 31, 2022 and September 30, 2021, respectively)

Investment securities - held to maturity, at amortized cost (fair value of $ 83,650 and $ 57,282 at June 30, 2022 and September 30, 2021, respectively)

Federal Home Loan Bank of New York stock, at cost

Loans receivable, net of allowance for loan losses of $ 8,300 and $ 8,075 at March 31, 2022 and September 30, 2021, respectively

Loans receivable, net of allowance for loan losses of $ 8,505 and $ 8,075 at June 30, 2022 and September 30, 2021, respectively

Bank owned life insurance

9 unchanged sentences

Preferred stock:

01 Par Value, 500,000 shares authorized;

at March 31, 2022 and September 30, 2021, none issued

01 Par Value in dollar, 500,000 shares authorized;

at June 30, 2022 and September 30, 2021, none issued

Common stock:

01 Par Value, 14,000,000 shares authorized;

01 Par Value in dollar, 14,000,000 shares authorized;

7,097,825 shares issued;

7,097,825 shares outstanding at March 31, 2022 and September 30, 2021, at cost

7,097,825 shares outstanding at June 30, 2022 and September 30, 2021, at cost

Additional paid-in capital

11 unchanged sentences

(In Thousands, Except Share and Per Share Data)

Ended March 31,

Ended June 30,

Interest and dividend income

14 unchanged sentences

Gains on sales of loans

Gain on sale of OREO

Total other income

19 unchanged sentences

(In Thousands)

Ended March 31,

Other comprehensive income

Unrealized loss on securities available for sale

Other comprehensive loss, before tax

Ended June 30,

Other comprehensive income (loss)

Unrealized (loss) gain on securities available for sale

Other comprehensive (loss) gain, before tax

Deferred income tax effect

Total other comprehensive loss

Total other comprehensive (loss) gain

Total comprehensive income

3 unchanged sentences

Consolidated Statements of Changes in Stockholders'

For the Three and Six Months Ended March 31, 2022 and 2021

For the Three and Nine Months Ended June 30, 2022 and 2021

(In Thousands, Except for Share Amounts)

Comprehensive

Balance, September 30, 2021

Balance, September 30,  

Dividends paid on common stock ($ 0.12 per share)

Other comprehensive income

Other comprehensive  

Common stock acquired by ESOP

ESOP shares allocated

Balance, December 31, 2021

Balance, December 31,  

Dividends paid on common stock ($ 0.03 per share)

Other comprehensive income

Other comprehensive  

ESOP shares allocated

Balance, March 31, 2022

The accompanying notes are an integral part of these consolidated financial statements.

Dividends paid on common stock ($ 0.03 per share)

Other comprehensive  

ESOP shares allocated

Balance, June 30, 2022

Comprehensive

Balance, September 30, 2020

Other comprehensive income

Balance, September 30,  

Other comprehensive  

ESOP shares allocated

Balance, December 31, 2020

Balance, December 31,  

Other comprehensive income

Balance, March 31, 2021

Other comprehensive income

Balance, June 30, 2021

The accompanying notes are an integral part of these consolidated financial statements.

3 unchanged sentences

(In Thousands)

Six Months Ended

Nine Months Ended

Operating activities

14 unchanged sentences

Decrease in accrued interest payable

(Decrease) increase in accounts payable and other liabilities

Increase in accounts payable and other liabilities

Net cash provided by operating activities

22 unchanged sentences

Net cash provided by financing activities

Net decrease in cash and cash equivalents

Net (decrease) increase in cash and cash equivalents

Cash and cash equivalents, beginning of year

15 unchanged sentences

The unaudited information furnished herein reflects all adjustments (consisting of normal recurring accruals) that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented.

Operating results for the three and six months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending September 30, 2022.

Operating results for the three and nine months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending September 30, 2022.

The September 30, 2021 information has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by US GAAP for complete consolidated financial statements.

2 unchanged sentences

Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of other real estate owned (“OREO”), and the assessment of realizability of deferred income tax assets.

The Company has evaluated events and transactions occurring subsequent to the balance sheet date of March 31, 2022 for items that should potentially be recognized or disclosed in these consolidated financial statements.

The Company has evaluated events and transactions occurring subsequent to the balance sheet date of June 30, 2022 for items that should potentially be recognized or disclosed in these consolidated financial statements.

The evaluation was conducted through the date these consolidated financial statements were issued.

NOTE B- RECENT ACCOUNTING PRONOUNCEMENTS

NOTE B –

RECENT ACCOUNTING PRONOUNCEMENTS

In connection with the preparation of quarterly and annual reports in accordance with the Securities and Exchange Commission’s (“SEC”) Securities Exchange Act of 1934, SEC Staff Accounting Bulletin Topic 11.M requires the disclosure of the impact that recently issued accounting standards will have on financial statements when they are adopted in the future.

7 unchanged sentences

The Company currently expects to continue to qualify as a smaller reporting company, based upon the current SEC definition, and as a result, will be able to defer implementation of the new standard until October 1, 2023.

The Company did not early adopt as of December 31, 2021, but will continue to review factors that might indicate that the full deferral time period should not be used.

The Company did not early adopt as of June 30, 2022, but will continue to review factors that might indicate that the full deferral time period should not be used.

The Company continues to evaluate the impact the new standard will have on the accounting for credit losses, but the Company may recognize a one-time cumulative-effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, consistent with regulatory expectations set forth in interagency guidance issued at the end of 2016.

20 unchanged sentences

The amendments in ASU 2022-02 will be effective for the Company with its adoption of ASU 2016-13.

NOTE C - CONTINGENCIES

NOTE C –

CONTINGENCIES

The Company, from time to time, is a party to routine litigation that arises in the normal course of business.

In the opinion of management, the resolution of this litigation, if any, would not have a material adverse effect on the Company’s consolidated financial position or results of operations

NOTE D - EARNINGS PER SHARE

The following table presents a calculation of basic and diluted earnings per share for the three and six months ended March 31, 2022 and 2021.

NOTE D –

EARNINGS PER SHARE

The following table presents a calculation of basic and diluted earnings per share for the three and nine months ended June 30, 2022 and 2021.

Basic and diluted earnings per share were calculated by dividing net income by the weighted-average number of shares outstanding for the periods.

As a result of the second-step conversion completed on July 14, 2021, the previously reported number of shares for the year ended March 31, 2021 were adjusted to reflect the 1.2213 exchange ratio for comparative purposes.

Three Months Ended March 31,

As a result of the second-step conversion completed on July 14, 2021, the previously reported number of shares for the year ended June 30, 2021 were adjusted to reflect the 1.2213 exchange ratio for comparative purposes.

Three Months Ended June 30,

(Dollars in thousands, except share and per share data)

Basic and diluted EPS

Net income available to weighted

average common shareholders

Six Months Ended March 31,

Net income available to weighted average common shareholders

Nine Months Ended June 30,

(Dollars in thousands, except share and per share data)

Basic and diluted EPS

Net income available to weighted

average common shareholders

There were no outstanding stock awards or options to purchase common stock at March 31, 2022 and 2021.

Net income available to weighted average common shareholders

There were no outstanding stock awards or options to purchase common stock at June 30, 2022 and 2021.

NOTE E –

3 unchanged sentences

The cost is measured based on the fair value of the equity or liability instruments issued.

There were no grants, vested shares or forfeitures of non-vested restricted stock awards for the three and six months ended March 31, 2022 and 2021.

There were no stock option and stock award expenses included with compensation expense for the three and six months ended March 31, 2022 and 2021.

The Company completed its first stock repurchase program of 130,927 shares in November 2007, and announced its second stock repurchase program of up to 5 % of its publicly-held outstanding shares of common stock, or 129,924 shares, in November 2007.

Through March 31, 2022, the Company had repurchased a total of 91,000 shares of its common stock at an average cost of $ 8.41 per share under this program.

Under current federal regulations, subject to limited exceptions, the Company may not repurchase shares of our common stock during the first year following the completion of its second-step conversion offering, which was completed on July 14, 2021.

The Company did not repurchase any shares of its common stock during the three and six months ended March 31, 2022 and 2021.

The Company held 112,996 total treasury stock shares at March 31, 2022.

There were no grants, vested shares or forfeitures of non-vested restricted stock awards for the three and nine months ended June 30, 2022 and 2021.

There were no stock option and stock award expenses included with compensation expense for the three and nine months ended June 30, 2022 and 2021.

The Company did not repurchase any shares of its common stock during the three and nine months ended June 30, 2022 and 2021.

The Company held 112,996 shares of its common stock as treasury shares at June 30, 2022, repurchased at an average cost of $ 10.99 through March 2020.

Under current federal regulations, subject to limited exceptions, the Company was not allowed to repurchase shares of our common stock during the first year following the completion of its second-step conversion offering, which was completed on July 14, 2021.

On July 21, 2022, the Company announced a stock repurchase program of up to 5 % of its publicly-held outstanding shares of common stock, or 354,891 shares.

The Company has an Employee Stock Ownership Plan ("ESOP") for the benefit of employees who meet certain eligibility requirements.

10 unchanged sentences

In connection with the second-step conversion offering, the ESOP trustees purchased 8 % of the shares sold in the offering, or 312,800 shares (“2021 ESOP”).

As a result of the second-step conversion offering being oversubscribed in the first tier of subscription priorities, the ESOP trustees were unable to purchase shares of the Company’s common stock in the second-step conversion offering.

The total cost of the shares purchased by the 2021 ESOP trust was $ 3.4 million, reflecting an average cost per share of $ 10.77 .

As a result of the second-step conversion offering being oversubscribed in the first tier of subscription priorities, the ESOP trustees were unable to purchase shares of the Company's common stock in the second-step conversion offering.

The total cost of the shares purchased on the open market by the 2021 ESOP trust was $ 3.4 million, reflecting an average cost per share of $ 10.77 .

The 2021 ESOP loan bears a variable interest rate that adjusts annually to the Prime Rate (3.25% at January 1, 2022) with principal and interest payable annually in equal installments over thirty years.

The Company's contribution expense for the ESOP was $ 99,000 and $ 50,000 for the six months ended March 31, 2022 and 2021, respectively.

The Company's contribution expense for the ESOP was $ 138,000 and $ 50,000 for the nine months ended June 30, 2022 and 2021, respectively.

NOTE F –

OTHER COMPREHENSIVE INCOME (LOSS)

The components of other comprehensive loss and the related income tax effects are as follows:

Three Months Ended March 31,

The components of other comprehensive income (loss) and the related income tax effects are as follows:

Three Months Ended June 30,

(In thousands)

Unrealized holding loss arising during period on:

Unrealized holding (loss) gain arising

during period on:

Available-for-sale investments

Other comprehensive loss, net

Six Months Ended March 31,

Other comprehensive (loss) gain, net

Nine Months Ended June 30,

(In thousands)

29 unchanged sentences

The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a recurring basis.

March 31, 2022

June 30, 2022

(In thousands)

17 unchanged sentences

The estimated fair value of MSRs is determined through a calculation of future cash flows, incorporating estimates of assumptions market participants would use in determining fair value including market discount rates, prepayment speeds, servicing income, servicing costs, default rates and other market driven data, including the market’s perception of future interest rate movements and, as such, are classified as Level 3.

The Company had MSRs totaling $ 1,000 and $ 4,000 at March 31, 2022 and September 30, 2021, respectively.

The Company had MSRs totaling $ 1,000 and $ 4,000 at June 30, 2022 and September 30, 2021, respectively.

Impaired Loans

19 unchanged sentences

As such, other real estate owned is generally classified as Level 3.

The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a non-recurring basis at March 31, 2022 and September 30, 2021.

March 31, 2022

The following tables provide the level of valuation assumptions used to determine the carrying value of the Company’s assets measured at fair value on a non-recurring basis at June 30, 2022 and September 30, 2021.

June 30, 2022

(In thousands)

8 unchanged sentences

(Dollars in thousands)

March 31, 2022

June 30, 2022

Unobservable Input

22 unchanged sentences

The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments carried at cost or amortized cost as of March 31, 2022 and September 30, 2021.

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments carried at cost or amortized cost as of June 30, 2022 and September 30, 2021.

For short-term financial assets such as cash and cash equivalents and accrued interest receivable, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization.

2 unchanged sentences

(In thousands)

March 31, 2022

June 30, 2022

Financial instruments - assets

16 unchanged sentences

The incremental borrowing rate used by the Company to value its operating leases is based on the interpolated term advance rate available from the Federal Home Loan Bank of New York, based on the remaining lease term.

At March 31, 2022, the Company’s operating lease ROU assets and operating lease liabilities totaled $ 3.6 million and $ 3.9 million, respectively.

At June 30, 2022, the Company’s operating lease ROU assets and operating lease liabilities totaled $ 3.4 million and $ 3.8 million, respectively.

The following table presents the balance sheet information related to our leases:

5 unchanged sentences

Weighted average discount rate

The following table summarizes the maturity of our remaining lease liabilities by fiscal year ending periods.

Dollars in thousands.

The following table summarizes the maturity of our remaining lease liabilities by year (in thousands):

For the Year Ending:

3 unchanged sentences

Present value of lease liabilities

Total leases expense recorded on the Consolidated Statements of Income within Occupancy expense were $ 398,000 and $ 406,000 for the six months ended March 31, 2022 and 2021, respectively.

NOTE I - INVESTMENT SECURITIES

The following table summarizes the amortized cost and fair values of securities classified as available-for-sale and held-to-maturity at March 31, 2022:

Total leases expense recorded on the Consolidated Statements of Income within Occupancy expense were $ 607,000 and $ 613,000 for the nine months ended June 30, 2022 and 2021, respectively.

NOTE I –

INVESTMENT SECURITIES

The following table summarizes the amortized cost and fair values of securities classified as available-for-sale and held-to-maturity at June 30, 2022:

June 30, 2022

(In thousands)

March 31, 2022

Securities available-for-sale:

20 unchanged sentences

Total investment securities

The contractual maturities of mortgage-backed securities generally exceed 10 years;

The contractual maturities of mortgage-backed securities generally exceed 10 years;

however, the effective lives are expected to be shorter due to anticipated prepayments.

The maturities of the debt securities, municipal bonds and certain information regarding the mortgage backed securities at March 31, 2022 are summarized in the following table:

The maturities of the debt securities, municipal bonds and certain information regarding the mortgage backed securities at June 30, 2022 are summarized in the following table:

June 30, 2022

(In thousands)

March 31, 2022

Securities available-for-sale:

11 unchanged sentences

The following table summarizes the amortized cost and fair values of securities classified as available-for-sale and held-to-maturity at September 30, 2021:

(In thousands)

September 30, 2021

(In thousands)

Securities available-for-sale:

30 unchanged sentences

Investment securities with fair values less than their amortized cost contain unrealized losses.

The following tables present the gross unrealized losses and fair value at March 31, 2022 and September 30, 2021 for both available for sale and held to maturity securities by investment category and time frame for which the loss has been outstanding:

The following tables present the gross unrealized losses and fair value at June 30, 2022 and September 30, 2021 for both available for sale and held to maturity securities by investment category and time frame for which the loss has been outstanding:

Less Than 12 Months

12 Months Or Greater

June 30, 2022

(Dollars in thousands)

March 31, 2022

Obligations of U.S.

1 unchanged sentence

Mortgage-backed securities - residential

Mortgage-backed securities - commercial

Obligations of U.S.

2 unchanged sentences

Debt securities

Private label mortgage-backed securities residential

Obligations of state and political subdivisions

12 unchanged sentences

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.

At March 31, 2022 and September 30, 2021, there were 62 and 36, respectively, investment securities with unrealized losses.

At June 30, 2022 and September 30, 2021, there were 75 and 36 investment securities with total unrealized losses of 9.0 million and 1.0 million, respectively.

Investment security unrealized losses at June 30, 2022 consisted of $ 6.6 million in mortgage-backed securities issued by U.S.

government agencies and U.S.

government-sponsored enterprises, $ 1.6 million in U.S.

government-sponsored enterprise debt securities, $ 467,000 in Obligations of state and political subdivisions, $ 375,000 in corporate notes and $ 8,000 in “private-label”

mortgage-backed securities.

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.

Management has considered factors regarding other than temporarily impaired securities and determined that there are no securities with impairment that is other than temporary as of March 31, 2022 and September 30, 2021.

NOTE K –

15 unchanged sentences

The loans bear a fixed rate of 1.0 % and loan payments are deferred through the date that the SBA remits the borrower’s loan forgiveness amount to the lender.

Included in commercial business loans at March 31, 2022 were 19 PPP loans totaling $ 5.2 million compared with 111 PPP loans totaling $ 25.1 million at September 30, 2021.

The Company expects most of these loans to be approved for full forgiveness by the SBA.

Included in commercial business loans at June 30, 2022 were two PPP loans totaling $ 370,000 compared with 111 PPP loans totaling $ 25.1 million at September 30, 2021.

The Company expects all but $ 3,000 of these loans to be approved for full forgiveness by the SBA.

The segments of the Bank’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance.

22 unchanged sentences

Total Impaired Loans

June 30, 2022

(In thousands)

March 31, 2022

One-to-four family residential

Commercial real estate

Home equity lines of credit

Commercial business

5 unchanged sentences

Total impaired loans

The average recorded investment in impaired loans was $10.1 million and $13.3 million for the six months ended March 31, 2022 and 2021, respectively.

The average recorded investment in impaired loans was $8.9 million and $12.6 million for the nine months ended June 30, 2022 and 2021, respectively.

The Company’s impaired loans include delinquent non-accrual loans and performing Troubled Debt Restructurings (“TDRs”), as TDRs remain impaired loans until fully repaid.

There were no TDRs during the six months ended March 31, 2022 and there was one TDR totaling $ 218,000 during the six months ended March 31, 2021.

The following tables present the average recorded investment in impaired loans for the three and six months ended March 31, 2022 and 2021.

There were no TDRs during the nine months ended June 30, 2022 and there were two TDRs totaling $ 330,000 during the nine months ended June 30, 2021.

The following tables present the average recorded investment in impaired loans for the three and nine months ended June 30, 2022 and 2021.

There was no interest income recognized on impaired loans during the periods presented.

Ended March 31, 2022

Ended June 30, 2022

(In thousands)

1 unchanged sentence

Commercial real estate

Home equity lines of credit

Commercial business

Average investment in impaired loans

Ended March 31, 2021

Ended June 30, 2021

(In thousands)

20 unchanged sentences

(In thousands)

March 31, 2022

June 30, 2022

One-to-four family residential

10 unchanged sentences

(In thousands)

March 31, 2022

June 30, 2022

One-to-four family residential

29 unchanged sentences

Since loans individually evaluated for impairment are promptly written down to their fair value, typically there is no portion of the ALL for loans individually evaluated for impairment.

The following table summarizes the ALL by loan category and the related activity for the six months ended March 31, 2022 and 2021:

The following table summarizes the ALL by loan category and the related activity for the nine months ended June 30, 2022 and 2021:

(In thousands)

Balance- September 30, 2021

Balance- September 30,  

Provision (credit)

Balance- December 31, 2021

Balance- December 31,  

Provision (credit)

Balance- March 31, 2022

Provision (credit)

Balance- June 30, 2022

(In thousands)

Balance- September 30, 2020

Balance- September 30,  

Provision (credit)

Balance- December 31, 2020

Balance- December 31,  

Provision (credit)

Balance- March 31, 2021

The following tables summarize the ALL by loan category, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of March 31, 2022 and September 30, 2021:

Provision (credit)

Balance- June 30, 2021

(In thousands)

Allowance for Loan Losses:

Balance - March 31, 2022

Allowance for Loan  

Balance - June 30, 2022

Individually evaluated for impairment

1 unchanged sentence

Loans receivable:

Balance - March 31, 2022

Balance - June 30, 2022

Individually evaluated for impairment

11 unchanged sentences

Management believes that the segmentation of the loan portfolio into homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date.

A Troubled Debt Restructuring (“TDR”) is a loan that has been modified whereby the Bank has agreed to make certain concessions to a borrower to meet the needs of both the borrower and the Bank to maximize the ultimate recovery of a loan.

A TDR is a loan that has been modified whereby the Bank has agreed to make certain concessions to a borrower to meet the needs of both the borrower and the Bank to maximize the ultimate recovery of a loan.

TDR occurs when a borrower is experiencing, or is expected to experience, financial difficulties and the loan is modified using a modification that would otherwise not be granted to the borrower.

1 unchanged sentence

A default on a TDR loan for purposes of this disclosure occurs when a borrower is 90 days past due or a foreclosure or repossession of the applicable collateral has occurred.

There were no TDRs for the six months ended March 31, 2022, and there was one TDR totaling $218,000 during the six months ended March 31, 2021.

Six Months Ended March 31, 2022

There were no TDRs for the nine months ended June 30, 2022, and there were two TDRs totaling $330,000 during the nine months ended June 30, 2021.

Three Months Ended June 30, 2021

Investment Before

4 unchanged sentences

One-to-four family residential

NOTE L - DEPOSITS

Nine Months Ended June 30, 2021

Investment Before

Investment After

TDR Modification

(Dollars in thousands)

One-to-four family residential

NOTE L –

A summary of deposits by type of account are summarized as follows:

16 unchanged sentences

In assessing whether it is more likely than not that some portion or all of the deferred tax assets will not be realized, management considers projections of future taxable income, the projected periods in which current temporary differences will be deductible, the availability of carry forwards, feasible and permissible tax planning strategies and existing tax laws and regulations.

The Company did not have a valuation allowance against its net deferred tax assets at March 31, 2022 or September 30, 2021.

The Company did not have a valuation allowance against its net deferred tax assets at June 30, 2022 or September 30, 2021.

A reconciliation of income tax between the amounts calculated based upon pre-tax income at the Company’s federal statutory rate and the amounts reflected in the consolidated statements of operations are as follows:

For the Three Months

For the Six Months

Ended March 31,

For the Nine Months

Ended June 30,

(In thousands)

2 unchanged sentences

Income tax expense

The Company’s statutory income tax rate in the State of New Jersey was 9.0 % for the three and six months ending March 31, 2022 and 2021.

The Company’s statutory income tax rate in the State of New Jersey was 9.0 % for the three and nine months ending June 30, 2022 and 2021.

The State of New Jersey imposed a temporary surtax on corporations earning New Jersey allocated income in excess of $ 1 million.

The surtax is set at a rate of 2.5 % and is currently effective through December 31, 2023.

Accordingly, the Company used an 11.5 % State tax rate for the calculation of its State income tax expense the three and six months ended March 31, 2022 and 2021.

NOTE N - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

Accordingly, the Company used an 11.5 % State tax rate for the calculation of its State income tax expense for the three and nine months ended June 30, 2022 and 2021.

NOTE N –

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

The Company may use derivative financial instruments, such as interest rate swaps and interest rate floors and caps, as part of its interest rate risk management.

6 unchanged sentences

The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties.

The Company was not required to pledge any collateral for its interest rate swaps with financial institutions at March 31, 2022 and September 30, 2021

The following table presents summary information regarding these derivatives as of March 31, 2022 and September 30, 2021.

The Company was not required to pledge any collateral for its interest rate swaps with financial institutions at June 30, 2022 and September 30, 2021.

The following table presents summary information regarding these derivatives as of June 30, 2022 and September 30, 2021.

Notional Amount

Average Maturiy (Years)

Average Maturity (Years)

Weighted Average Fixed Rate

1 unchanged sentence

(Dollars in thousands)

March 31, 2022

June 30, 2022

Classified in Other Assets:

18 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements