What changed in this filing

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Item 1A. Risk Factors

2022-12-22 compared with 2021-12-20 · 62 added, 39 removed, 262 unchanged (28% of the section changed)

2 unchanged sentences

Economic and Market Area

Inflation can have an adverse

impact on our business and on our customers.

Inflation risk is the risk that

the value of assets or income from investments will be worth less in the future as inflation decreases the value of money.

Recently, there

have been market indicators of a pronounced rise in inflation and the Federal Reserve Board has indicated its intention to raise certain

benchmark interest rates in an effort to combat inflation.

As inflation increases and market interest rates rise, the value of our investment

securities, particularly those with longer maturities, would decrease, although this effect can be less pronounced for floating rate instruments.

In addition, inflation generally increases the cost of goods and services we use in our business operations, such as electricity and other

utilities, which increases our noninterest expenses.

Furthermore, our customers are also affected by inflation and the rising costs of

goods and services used in their households and businesses, which could have a negative impact on their ability to repay their loans with

COVID-19 Pandemic Has and Will Continue to Pose Risks and Could Harm Our Business, Results of Operations and Prospects.

6 unchanged sentences

Additionally, the responses

of various governmental and

nongovernmental

authorities to curtail business and consumer activities in an effort to mitigate the pandemic will have material long-term effects on

the Company and its customers which are difficult to quantify in the near-term or long-term.

of various governmental and nongovernmental authorities to curtail business and consumer activities in an effort to mitigate the pandemic

will have material long-term effects on the Company and its customers which are difficult to quantify in the near-term or long-term.

the result of the COVID-19 pandemic and the related adverse local and national economic consequences, the Company is subject to the following

33 unchanged sentences

The adverse effect

of the COVID-19 pandemic on the Company, its customers and the communities where it operates may adversely affect the Company’s

business, results of operations and financial condition for an indefinite period of time.

of the COVID-19 pandemic on the Company, its customers and the communities

where it operates

may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time.

deterioration in economic conditions could result in the following consequences, any of which could have a material adverse effect on

42 unchanged sentences

Interest Rate and Asset Quality

The reversal of the historically

low interest rate environment may adversely affect our net interest income and profitability.

The Federal Reserve Board decreased

benchmark interest rates significantly, to near zero, in response to the COVID-19 pandemic.

The Federal Reserve Board is reversing its

policy of near zero interest rates given its concerns over inflation.

In recent periods, market interest rates have risen in response

to the Federal Reserve Board’s recent rate increases.

As discussed below, the increase in market interest rates could have an adverse

effect on our net interest income and profitability.

Changes in Interest Rates May

12 unchanged sentences

interest rates, the interest income earned on our assets may not increase as rapidly as the interest paid on our liabilities.

in a period of falling interest rates, the interest expense

paid on our liabilities may not decrease as rapidly

as the interest income received on our assets.

See “Management’s Discussion and Analysis of Financial Condition and Results

of Operations-Management of Market Risk.”

in a period of falling interest rates, the interest expense paid on our liabilities may not decrease as rapidly as the interest income

received on our assets.

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Management

of Market Risk.”

In addition, changes in interest

17 unchanged sentences

At September 30, 2022, in the event of an immediate 200 basis point increase in interest rates, the model projects that we would experience

a $895,000, or 3.5%, increase in net interest income in the first year following the change in interest rates, and a $1.8 million, or

a $212,000, or 0.7%, decrease in net interest income in the first year following the change in interest rates, and a $1.1 million, or

3.4%, increase in net interest income in the second year following the change in interest rates.

At September 30, 2022, in the event of

an immediate 100 basis point decrease in interest rates, the model projects that we would experience a $1.1 million, or 4.5%, decrease

in net interest income in the first year following the change in interest rates, and a $1.7 million, or 7.0%, decrease in net interest

income in the second year following the change in interest rates.

an immediate 200 basis point decrease in interest rates, the model projects that we would experience a $946,000, or 3.3%, decrease in

net interest income in the first year following the change in interest rates, and a $2.7 million, or 8.6%, decrease in net interest income

in the second year following the change in interest rates.

At September 30, 2022,

5 unchanged sentences

At September 30, 2022,

our portfolio of commercial business and commercial real estate loans totaled $349.6 million (including $25.1 million in PPP loans), or

58.8% of our total loans, compared to $349.1 million (including $56.0 million in PPP loans), or 57.1% of our total loans at September

30, 2020 and $281.3 million, or 53.8% of our total loans at September 30, 2019.

our portfolio of commercial real estate and commercial business loans totaled $377.5 million, or 60.0% of our total loans, compared to

$349.6 million (including $25.1 million in PPP loans), or 58.8% of our total loans at September 30, 2021 and $349.1 million (including

$56.0 million in PPP loans), or 57.1% of our total loans at September 30, 2020.

It is our intent to continue to emphasize the origination

2 unchanged sentences

than one-to four-family residential mortgage loans.

At September 30, 2021, our non-performing commercial business and commercial real

estate loans were $2.4 million and $3.7 million, respectively, at September 30, 2021 and 2020.

At September 30, 2022, there were no non-performing commercial real estate and commercial

business loans compared with $2.4 million at September 30, 2021.

Because the repayment of

10 unchanged sentences

of the collateral.

Because we plan to continue to emphasize the origination of these loans, it may be necessary to increase our allowance

for loan losses because of the increased credit risk associated with these types of loans.

Any increase to our allowance for loan losses

would adversely affect our earnings.

Because we plan to continue to emphasize the origination of these loans, it may be necessary to

increase our allowance for loan losses because

of the increased credit risk associated with these types of loans.

Any increase to our allowance for loan losses would adversely affect

our earnings.

Our Allowance for Loan Losses is Not Sufficient to Cover Actual Loan Losses, Our Earnings Could Decrease.

2 unchanged sentences

decrease our net income.

The allowance for loan losses increased by $1.7 million during the year ended September 30, 2021 to $8.1 million

The allowance for loan losses increased by $358,000 during the year ended September 30, 2022 to $8.4 million

from $8.1 million for the year ended September 30, 2021.

The increases were attributable to net growth in non-PPP loans and higher adjustments

to the historical loss factors for economic conditions relating to the COVID-19 pandemic.

The allowance for loan losses as a percentage

of non-performing loans increased to 99.0% at September 30, 2021 compared with 65.8% at September 30, 2020.

At September 30, 2021 our

allowance for loan losses as a percentage of total loans was 1.36%, compared with 1.05% at September 30, 2020.

The increases were attributable to the growth in loan receivable, which increased

by $34.3 million to $628.9 million at September 30, 2022 from $594.6 million at September 30, 2021, and higher adjustments to the economic

The allowance for loan losses as a percentage of non-performing loans increased to 297.5% at September 30, 2022 compared with

99.0% at September 30, 2021.

At September 30, 2022 our allowance for loan losses as a percentage of total loans was 1.34%, compared with

1.36% at September 30, 2021.

Future increases in the

13 unchanged sentences

The implementation of CECL has

been delayed for smaller reporting companies, such as the Company, until January 2023.

CECL will require financial institutions to determine

periodic estimates of lifetime expected credit losses on loans, and recognize the expected credit losses as allowances for loan losses.

This will change the current method of providing allowances for loan losses that are probable, which may require us to increase our allowance

for loan losses, and to greatly increase the types of data we will need to collect and review to determine the appropriate level of the

allowance for loan losses.

Any increase in our allowance for loan losses or expenses incurred to determine the appropriate level of the

allowance for loan losses may have a material adverse effect on our financial condition and results of operations.

been delayed for smaller reporting companies, such as the Company, until January 2023 (effective October 1, 2023 for the Company).

will require financial institutions to determine periodic estimates of lifetime expected credit losses on loans, and recognize the expected

credit losses as allowances for loan losses.

This will change the current method of providing allowances for loan losses that are probable,

which may require us to increase our allowance for loan losses, and to greatly increase the types of data we will need to collect and

review to determine the appropriate level of the allowance for loan losses.

Any increase in our allowance for loan losses or expenses

incurred to determine the appropriate level of the allowance for loan losses may have a material adverse effect on our financial condition

and results of operations.

Regulatory Matters

93 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-K

Item 1A. Risk Factors