Gouverneur Bancorp (GOVB) 10-Q28 Sep 232023 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Sep. 27, 2023
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Entity File Number	333-272548
Entity Registrant Name	Gouverneur Bancorp, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	37-2102925
Entity Address, Address Line One	42 Church Street
Entity Address, City or Town	Gouverneur
Entity Address State Or Province	NY
Entity Address, Postal Zip Code	13642
City Area Code	315
Local Phone Number	287-2600
Title of 12(b) Security	None
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		0
Entity Central Index Key	0001978811
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Assets:
Cash and due from banks	$ 6,041	$ 10,109
Interest-bearing deposits in bank	1,689	4,235
Total cash and cash equivalents	7,730	14,344
Time Deposits in other financial institutions	728	718
Securities available-for-sale	47,229	49,645
Securities held-to-maturity (fair value June 30, 2023 and September 30, 2022: $1)	1	1
Loans receivable, net	125,062	125,111
Federal Home Loan Bank and Atlantic Community Bankers Bank stock, at cost	1,393	895
Bank owned life insurance	6,947	6,841
Premises and equipment, net	3,137	3,155
Foreclosed real estate, net	132	75
Core deposit intangible	2,195	2,542
Goodwill	3,956	3,956
Accrued interest receivable and other assets	4,631	5,736
Total assets	203,141	213,019
Liabilities:
Deposits: Non-interest-bearing demand	19,286	25,760
NOW and money market	49,906	54,085
Savings and club	70,630	83,735
Time certificates	20,797	20,371
Total deposits	160,619	183,951
Advances from the Federal Home Loan Bank	11,990
Advanced payments from borrowers for taxes and insurance	1,076	433
Accrued interest payable and other liabilities	3,202	3,806
Total liabilities	176,887	188,190
Shareholders' Equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized; none issued
Common stock, $.01 par value, 9,000,000 shares authorized; 2,031,377 shares issued	24	24
Additional paid-in capital	5,035	5,035
Retained earnings	28,156	28,128
Accumulated other comprehensive loss	(2,891)	(4,288)
Treasury Stock, at cost, (shares June 30, 2023: 352,231: September 30, 2022: 352,233)	(4,070)	(4,070)
Total shareholders' equity	26,254	24,829
Total liabilities and shareholders' equity	203,141	213,019
Originated
Assets:
Loans receivable, net	90,819	88,334
Acquired
Assets:
Loans receivable, net	$ 34,243	$ 36,777

CONSOLIDATED STATEMENTS OF FI_2

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
Securities held-to-maturity, fair value	$ 1		$ 1
Net Discounts on Acquired Loans	1,038		1,205
Allowance for loan losses	$ 598	$ 675	$ 621	$ 625	$ 609	$ 620
Preferred stock, par value	$ 0.01		$ 0.01
Preferred stock, shares authorized	1,000,000		1,000,000
Preferred stock, shares issued	0		0
Common stock, par value	$ 0.01		$ 0.01
Common stock, shares authorized	9,000,000		9,000,000
Common stock, shares issued	2,031,377		2,031,377
Treasury stock, shares	352,231		352,233

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Interest income:
Loans, net	$ 1,529	$ 971	$ 4,498	$ 2,950
Net swap income (expense) on loan hedge		(42)	41	(165)
Securities-taxable	366	39	1,058	101
Securities-non-taxable	120	113	396	353
Other short-term investments	18	6	72	8
Total interest income	2,033	1,087	6,065	3,247
Interest expense:
Deposits	138	64	184	222
Borrowings - short term and long term	125		178
Net swap income on borrowing hedge	(76)		(76)
Total interest expense	187	64	286	222
Net interest income	1,846	1,023	5,779	3,025
Provision for loan losses	30	15	92	46
Net interest income after provision for loan losses	1,816	1,008	5,687	2,979
Non-interest income:
Service charges	79	71	248	201
Realized loss on sales of securities - AFS			(661)
Realized gain on swap unwound			654
Earnings on investment in life insurance	35	34	106	102
Earnings (loss) on deferred fees plan	8	(29)	49	(26)
Unrealized gains (loss) on swap agreements	40	434	(783)	1,527
Earnings on MPF and MAP programs	10	11	31	47
Other non-interest income	103	54	260	174
Total non-interest income (loss)	275	575	(96)	2,025
Non-interest expenses:
Salaries and employee benefits	911	531	2,587	1,660
Directors fees	71	73	214	206
Earnings (losses) on deferred fees plan	8	(29)	49	(26)
Building, occupancy and equipment	237	156	749	482
Data processing	115	64	342	194
Postage and supplies	37	20	118	50
Professional fees	131	226	357	652
Intangibles & deposit premium expense	115		344
Foreclosed assets, net	(14)	(11)	18	2
Other non-interest expense	236	152	677	451
Total non-interest expenses	1,847	1,182	5,455	3,671
Income before income tax expense	244	401	136	1,333
Income tax (benefit) expense	12	62	(96)	207
Net income	$ 232	$ 339	$ 232	$ 1,126
Earnings per common share - basic	$ 0.11	$ 0.17	$ 0.11	$ 0.55
Earnings per common share - diluted	$ 0.11	$ 0.17	$ 0.11	$ 0.55

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net Income	$ 232	$ 339	$ 232	$ 1,126
Unrealized gain (loss) on securities:
Unrealized holding gain (loss) arising during period, net of deferred income tax (benefit)	(580)	(1,422)	1,497	(3,701)
Tax expense (benefit)	(122)	(299)	314	(777)
Post-retirement benefit (net of deferred taxes)	178	53	271	159
Tax expense	37	11	57	33
Total other comprehensive income (loss)	(317)	(1,081)	1,397	(2,798)
Total comprehensive income (loss)	$ (85)	$ (742)	$ 1,629	$ (1,672)

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	AOCI Attributable to parent	Total
Beginning balance at Sep. 30, 2021	$ 24,000	$ 5,035,000	$ 26,717,000	$ (4,070,000)	$ (304,000)	$ 27,402,000
Comprehensive income:
Net income			1,126,000			1,126,000
Net pension and postretirement benefit costs, net of taxes					126,000	126,000
Change in unrealized gain (losses) on securities available-for-sale, net of reclassification adjustment and tax effects					(2,924,000)	(2,924,000)
Cash dividends declared			(72,000)			(72,000)
Ending balance at Jun. 30, 2022	24,000	5,035,000	27,771,000	(4,070,000)	(3,102,000)	25,658,000
Beginning balance at Sep. 30, 2021	24,000	5,035,000	26,717,000	(4,070,000)	(304,000)	27,402,000
Comprehensive income:
Cash dividends declared						(115,000)
Ending balance at Sep. 30, 2022	24,000	5,035,000	28,128,000	(4,070,000)	(4,288,000)	24,829,000
Beginning balance at Mar. 31, 2022	24,000	5,035,000	27,432,000	(4,070,000)	(2,021,000)	26,400,000
Comprehensive income:
Net income			339,000			339,000
Net pension and postretirement benefit costs, net of taxes					42,000	42,000
Change in unrealized gain (losses) on securities available-for-sale, net of reclassification adjustment and tax effects					(1,123,000)	(1,123,000)
Ending balance at Jun. 30, 2022	24,000	5,035,000	27,771,000	(4,070,000)	(3,102,000)	25,658,000
Beginning balance at Sep. 30, 2022	24,000	5,035,000	28,128,000	(4,070,000)	(4,288,000)	24,829,000
Comprehensive income:
Net income			232,000			232,000
Net pension and postretirement benefit costs, net of taxes					214,000	214,000
Change in unrealized gain (losses) on securities available-for-sale, net of reclassification adjustment and tax effects					1,183,000	1,183,000
Cash dividends declared			(204,000)			(204,000)
Ending balance at Jun. 30, 2023	24,000	5,035,000	28,156,000	(4,070,000)	(2,891,000)	26,254,000
Beginning balance at Mar. 31, 2023	24,000	5,035,000	27,924,000	(4,070,000)	(2,574,000)	26,339,000
Comprehensive income:
Net income			232,000			232,000
Net pension and postretirement benefit costs, net of taxes					141,000	141,000
Change in unrealized gain (losses) on securities available-for-sale, net of reclassification adjustment and tax effects					(458,000)	(458,000)
Ending balance at Jun. 30, 2023	$ 24,000	$ 5,035,000	$ 28,156,000	$ (4,070,000)	$ (2,891,000)	$ 26,254,000

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY (Parenthetical) - $ / shares	1 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Cash dividends declared, per share	$ 0.10	$ 0.10	$ 0.10	$ 0.06	$ 0.06

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net Income	$ 232	$ 1,126
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan loss	92	46
Net amortization of deferred fees on loans	72	78
Depreciation	166	98
Loss on subsequent write-downs of REOs	23
Net accretion (amortization) of securities premiums and discounts	(528)	1
Net realized loss on sales of securities available for sale	661
Net amortization of core deposits intangible	347
Earnings on investment in life insurance	(106)	(102)
Net realized losses on disposal of premises and equipment		1
Net realized gain on sale of foreclosed assets	(20)	(17)
(Increase) decrease in accrued interest receivable and other assets	735	(68)
Decrease in accrued interest payable and other liabilities	(334)	(3,106)
Net cash (used in) provided by operating activities	1,340	(1,943)
Securities available for sale:
Proceeds from sales of securities available for sale	4,988
Proceeds from maturities and principal reductions of securities available for sale	4,609	2,016
Purchases of securities available for sale	(5,827)	(1,932)
Securities held to maturity - proceeds from maturities		1
Purchases of Federal Home Loan Bank stock	(498)	(8)
Net increase in loans receivable and loans held for sale	(305)	(1,407)
Proceeds from sale of foreclosed assets	130	168
Additions to premises and equipment	(148)	(87)
Net cash provided by (used in) investing activities	2,949	(1,249)
Cash flows from financing activities:
Net decrease in deposits	(23,332)	(66)
Proceeds from short-term borrowings	42,070
Repayments of short-term borrowings	(30,080)
Advance payments by borrowers for Property Taxes and Insurance, net	643	541
Cash dividends paid to common stock shareholders	(204)	(72)
Net cash provided by (used in) financing activities	(10,903)	403
Net decrease in cash and cash equivalents	(6,614)	(2,789)
Cash and cash equivalents - Beginning of Year	14,344	11,049
Cash and cash equivalents - End of Year	7,730	8,260
Supplemental disclosures:
Cash paid during the year for interest	268	234
Loans receivable transferred to foreclosed assets during the year	234
Write-downs on foreclosed assets through the allowance for loan losses	$ (44)	$ (25)

Basis of Presentation

Basis of Presentation	9 Months Ended
Basis of Presentation	Jun. 30, 2023
Basis of Presentation
Basis of Presentation	Note 1: Basis of Presentation The accompanying consolidated financial statements include the accounts of Gouverneur Bancorp, Inc. (“Bancorp”) and Gouverneur Savings and Loan Association (the “Bank”), the wholly owned and only subsidiary of the Company, and GS&L Municipal Bank (“Municipal Bank”), the wholly owned and only subsidiary of the Bank, (collectively referred to as the “Company”) as of June 30, 2023 (unaudited) and September 30, 2022 and for the three and nine-month periods ended June 30, 2023 and 2022 (unaudited). All material intercompany accounts and transactions have been eliminated in this consolidation. These statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with generally accepted accounting principles in the United States of America. On September 16, 2022, the Bank completed its acquisition of Citizens Bank of Cape Vincent (“CBCV”), Cape Vincent, New York, a commercial bank with full-service offices in the villages of Cape Vincent, Chaumont and LaFargeville. At the effective time of the merger, CBCV was merged with and into Gouverneur Savings and Loan Association and each CBCV stockholder became entitled to receive In conjunction with the acquisition of CBCV, The Bank formed the limited purpose Municipal Bank in order to continue to hold CBCV’s roughly $24,187,000 in municipal deposits and continue to compete for such deposits in the future. The Municipal Bank is a limited purpose commercial bank that is a wholly owned subsidiary of the Bank and operates under the same regulatory and operating framework as the Bank. The formation of the Muni Bank included an initial $2.5 million contribution from the Bank. In the opinion of management, all adjustments, consisting of only normal recurring adjustments or accruals, which are necessary for a fair presentation of the consolidated financial statements have been made at and for the three-month and the nine-month periods ended June 30, 2023 and 2022. The results of operations for the three and nine-month periods ended June 30, 2023 are not necessarily indicative of the results which may be expected for an entire fiscal year or other periods. The data in the consolidated statements of financial condition for September 30, 2022 was derived from the Company’s audited financial statements for the year ended September 30, 2022. That data, along with the interim financial information presented in the consolidated statements of financial condition, income, shareholders’ equity and cash flows should be read in conjunction with the Company’s audited financial statements for the year ended September 30, 2022, including the notes thereto. Certain amounts for the three-month and nine-month periods ended June 30, 2022 were reclassified to conform to the presentation of June 30, 2023.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2023
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2: Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly owned subsidiary, the Municipal Bank. All intercompany accounts and transactions have been eliminated in consolidation. The Municipal Bank is a New York chartered limited purpose commercial bank organized in September 2022 to solicit municipal deposits from local government entities such as towns, cities, school districts, fire districts and other municipalities. The Bank views the Municipal Bank as a source of low cost and stable source of funds that will further the Bank’s commitment to the communities in which the Bank operates. At June 30, 2023, the Municipal Bank held $27.2 million of the Bank’s $47.2 million investment securities portfolio and $19.0 million of the Bank’s deposits. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses. In connection with the determination of the estimated loan losses, management obtains independent appraisals for significant properties. The Company’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on local economic conditions. While management uses available information to recognize losses on loans and foreclosed assets, further reductions in the carrying amounts of loans and foreclosed assets may be necessary, based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans and foreclosed assets. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans and foreclosed assets may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Revenue Recognition The majority of the Company’s revenue stream is generated from interest income on loans and deposits which are outside the scope of “ Revenue from Contracts with Customers”   The Company’s sources of income that fall within the scope of Topic 606 include service charges on deposits, interchange fees and gains and losses on sales of other real estate, all of which are presented as components of noninterest income. On the following page is a summary of the revenue streams that fall within the scope of Topic 606. Service charges on deposits, ATM, and interchange fees Gains and losses on sales of other real estate – Recently Issued Accounting Standards On October 1, 2022, the Company adopted ASU 2021-10 related to guidance on “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistances”, which aims to provide increased transparency by requiring business entities to disclose information about certain types of government assistance they receive in the notes to the financial statements. Current GAAP has no specific authoritative guidance on the accounting for, or the disclosure of, government assistance received by business entities. The amendments in this Update improve financial reporting by requiring disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02 to its guidance on “Leases (Topic 842)”. The new leases standard applies a right-of-use (ROU) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. The new leases standard requires a lessor to classify leases as either sales-type, direct financing or operating, similar to existing GAAP. Classification depends on the same five criteria used by lessees plus certain additional factors. The subsequent accounting treatment for all three lease types is substantially equivalent to existing GAAP for sales-type leases, direct financing leases, and operating leases. However, the new standard updates certain aspects of the lessor accounting model to align it with the new lessee accounting model, as well as with the new revenue standard under Topic 606. Lessees and lessors are required to provide certain qualitative and quantitative disclosures to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The adoption of this ASU will result in a gross up of the Consolidated Statements of Condition for right-of-use assets and associated lease liabilities for operating leases in which the Company is the lessee. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842 - Leases to address certain narrow aspects of the guidance issued in ASU No. 2016-02. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which amends FASB Accounting Standards Codification (ASC), Leases (Topic 842), to (1) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (2) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. In December 2018, the FASB issued ASU No. 2018-20, Narrow-Scope Improvements for Lessors, which addresses issues related to (1) sales tax and similar taxes collected from lessees, (2) certain lessor costs, and (3) recognition of variable payments for contracts with lease and non-lease components. In June 2020, the FASB issued No. ASU 2020-05, Coronavirus Disease 2019 (“COVID-19”) in response to the pandemic which has adversely affected the global economy and caused significant and widespread business and capital market disruptions. The FASB is committed to supporting and assisting stakeholders during this difficult time. The FASB issued ASU 2020-05 as a limited deferral of the effective dates of certain ASUs, including ASU 2016-02 (including amendments issued after the issuance of the original) to provide immediate, near-term relief for certain entities for whom these ASUs are either currently effective or imminently effective. The Company plans to defer the adoption of the amendments in ASU 2016-02 to the fiscal year beginning October 1, 2022. The Company is evaluating the significance and other effects of adoption on the consolidated financial statements and related disclosures. The Company is performing its accounting analysis of its branch building and other leases underlying contracts. At October 1, 2022, the Company recognized right of use operating leases valued at approximately $43,000. At June 30, 2023, the Company recognized right of use operating leases valued approximately $25,000. In June 2016, the FASB issued ASU 2016-13 to its guidance on “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. The amendments in this ASU are effective for the Company for the fiscal year beginning October 1, 2023. An entity will apply the amendments in this ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which aligns the implementation date for nonpublic entities’ annual financial statements with the implementation date for their interim financial statements and clarifies the scope of the guidance in the amendments in ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. ASU 2019-04 clarifies or addresses stakeholders’ specific issues about certain aspects of the amendments in Update 2016-13 related to measuring the allowance for loan losses under the new guidance. The effective dates and transition requirements for the amendments related to this Update are the same as the effective dates and transition requirements in Update 2016-13. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments Credit Losses clarifying certain amendments to various provisions of ASU No. 2016-13 relating to (1) purchased financial assets with credit deterioration, (2) financial assets secured by collateral maintenance agreements, (3) transition relief for troubled debt restructurings, and (4) disclosure relief when the practical expedient for accrued interest receivables is applied. In March 2022, the FASB issued ASU 2022-02, Codification Improvements to Topic 326, Financial Instruments Credit Losses, which eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhances the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The initial adjustment will not be reported in earnings and therefore will not have any material impact on our consolidated results of operations, but it is expected that it will have an impact on our consolidated financial position for periods ending after October 1, 2023, the date of adoption of this ASU. The Day one CECL adjustment is expected to be between $400,000 and $450,000 and will be reflected in our financial statements for periods ending after October 1, 2023. Under the current method, there is no reserve calculated for the acquired Citizens Bank of Cape Vincent loans with the net discount covering the calculated reserve amount. According to CECL guidance, prior discounts are not utilized to offset CECL reserves. We will continue to accrete all of the discount into income and the CECL reserve will be applied at adoption, with an adjustment coming from retained earnings. In December 2019, the FASB issued ASU 2019-12, Income Taxes Topic 740. This update simplifies and improves accounting for income taxes by eliminating certain exceptions to the general rules and clarifying or amending other current guidance. The scope of FASB ASC Subtopic 740-10, Income Taxes -Overall, has been amended to require that, if a franchise (or similar tax) is partially based on income, (1) deferred tax assets and liabilities should be recognized and accounted for pursuant to FASB ASC 740, as should the amount of current tax expense that is based on income, and (2) any incremental amount incurred should be recorded as a non-income-based tax. Note that under the amended guidance, the effect of potentially paying a non-income-based tax in future years need not be considered in evaluating the realizability of deferred tax assets. The amendments in this ASU are effective for the Company for the fiscal year beginning October 1, 2023. Early adoption is permitted, including adoption in an interim period. If early adoption is elected, all of the amended guidance must be adopted in the same period. If early adoption is initially applied in an interim period, any adjustments should be reflected as of the beginning of the annual period that includes that interim period. We do not anticipate that the adoption of this guidance will have a material impact on the consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments (1) apply to contract modifications that replace a reference rate affected by reference rate reform, (2) provide exceptions to existing guidance related to changes to the critical terms of a hedging relationship due to reference rate reform (3) provide optional expedients for fair value hedging relationships, cash flow hedging relationships, and net investment hedging relationships, and (4) provide a onetime election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The amendments for contract modifications can be elected to be applied as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020. The amendments for existing hedging relationships can be elected to be applied as of the beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform to clarify that all derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment are in scope of Topic 848. ASU 2021-01 expands the scope of ASU 2020-04 by allowing an entity to apply the optional expedients, by stating that a change to the interest rate used for margining, discounting or contract price alignment for a derivative is not considered to be a change to the critical terms of the hedging relationship that requires dedesignation. The Company has signed an amended agreement with Federal Home Loan Bank of New York for the transition to SOFR which began July 1, 2023.

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
Earnings Per Common Share	Jun. 30, 2023
Earnings Per Common Share
Earnings Per Common Share	Note 3: Earnings Per Common Share Basic earnings per common share represent income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. The table below sets forth the computation of basic and diluted earnings per common share for the three and nine-month periods ending June 30, 2023 and 2022 (In thousands, except per share data) (unaudited). Three Months Ended Nine Months Ended June 30, June 30, Basic earnings per share: 2023 2022 2023 2022 Net income $ 232 $ 339 $ 232 $ 1,126 Weighted average common shares outstanding used to Calculate basic and diluted earnings per common share 2,031 2,031 2,031 2,031 Basic and diluted earnings per common share $ 0.11 $ 0.17 $ 0.11 $ 0.55 There were no dilutive or antidilutive shares at June 30, 2023 or 2022.

Comprehensive Income (Loss)

Comprehensive Income (Loss)	9 Months Ended
Comprehensive Income (Loss)	Jun. 30, 2023
Comprehensive Income (Loss)
Comprehensive Income (Loss)	Note 4: Comprehensive Income (Loss) Comprehensive income (loss), presented in the consolidated statements of shareholders’ equity, consists of net income and the net change for the period in after-tax unrealized gains or losses on securities available for sale and post-retirement benefits. The following table shows the components of accumulated other comprehensive loss at June 30, 2023 (unaudited) and September 30, 2022: June 30, September 30, 2023 2022 (In thousands) Pension and postretirement benefit costs, net of taxes of $106 at June 30, 2023 and $162 at September 30, 2022 $ (397) $ (611) Unrealized holding losses on available for sale securities, net of taxes of $(663) at June 30, 2023 and $(977) at September 30, 2022 (2,494) (3,677) $ (2,891) $ (4,288)

Investment Securities

Investment Securities	9 Months Ended
Investment Securities	Jun. 30, 2023
Investment Securities
Investment Securities	Note 5: Investment Securities The amortized cost of debt securities and their approximate fair value at June 30, 2023 (unaudited) is represented in the table on the table below: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (unaudited) (In Thousands) AVAILABLE FOR SALE U.S. Government Treasuries $ 3,742 $ — $ (65) $ 3,677 U.S. Government Agencies 11,947 1 (173) 11,775 Mortgaged-Backed Securities 9,033 2 (432) 8,603 Municipal Securities 23,144 37 (2,518) 20,663 SBA Securities 2,514 13 (16) 2,511 $ 50,380 $ 53 $ (3,204) $ 47,229 HELD TO MATURITY Mortgage-Backed Securities $ 1 $ — $ — $ 1 The amortized cost of debt securities and their approximate fair value at September 30, 2022 is represented in the table below. Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (unaudited) (In Thousands) AVAILABLE FOR SALE U.S. Government Treasuries $ 4,163 $ — $ (4) $ 4,159 U.S. Government Agencies 10,335 — (12) 10,323 Mortgaged-Backed Securities 9,143 2 (705) 8,440 Municipal Securities 28,878 3 (3,937) 24,944 SBA Securities 1,780 — (1) 1,779 $ 54,299 $ 5 $ (4,659) $ 49,645 HELD TO MATURITY Mortgage-Backed Securities $ 1 $ — $ — $ 1 The amortized cost and fair value of debt securities, by contractual maturity, at June 30, 2023 (unaudited) is as shown below. Expected maturities will differ from contractual maturities call or prepay obligations with or without call or prepayment penalties. Debt Securities Debt Securities Available-for-Sale Held-to-Maturity Amortized Amortized Cost Fair Value Cost Fair Value (In Thousands) Due Within One Year $ 5,093 $ 5,063 $ — $ — Due After One Year Through Five Years 15,441 15,229 — — Due After Five Years Through Ten Years 3,957 3,829 — — Due After Ten Years 14,342 11,994 — — 38,833 36,115 — — Mortgage-Backed & SBA Securities 11,547 11,114 1 1 $ 50,380 $ 47,229 $ 1 $ 1 The amortized cost and fair value of debt securities, by contractual maturity, at September 30, 2022 is as shown below. Debt Securities Debt Securities Available-for-Sale Held-to-Maturity Amortized Amortized Cost Fair Value Cost Fair Value (In Thousands) Due Within One Year $ 4,065 $ 4,062 $ — $ — Due After One Year Through Five Years 16,390 16,374 — — Due After Five Years Through Ten Years 8,572 8,162 — — Due After Ten Years 14,349 10,828 — — 43,376 39,426 — — Mortgage-Backed & SBA Securities 10,923 10,219 1 1 $ 54,299 $ 49,645 $ 1 $ 1 The realized gains and losses from the sale of available-for-sale investments for the three and nine-month periods ending June 30, 2023 and 2022 (unaudited) is as shown on the table below: Three Months Ended, Nine Months Ended, June 30, June 30, 2023 2022 2023 2022 (unaudited) (In Thousands) Proceeds $ — $ — $ 4,988 $ — Cost — — (5,649) — Net Realized Gains (Losses) $ — $ — $ (661) $ — Gross Realized Gains $ — $ — $ — $ — Gross Realized Losses — — (661) — Net Realized Gains (Losses) $ — $ — $ (661) $ — Information pertaining to securities with gross unrealized losses at June 30, 2023 (unaudited), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: Less than Twelve months Over Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Losses Fair Value Losses Fair Value Losses Fair Value (In Thousands) June 30, 2023 Unaudited Securities Available-for-Sale: US Treasuries & Agencies $ 238 $ 15,248 $ — $ — $ 238 $ 15,248 Mortgage-backed & SBA Securities 448 9,928 — — 448 9,928 Municipal Securities 82 6,822 2,436 8,591 2,518 15,413 $ 768 $ 31,998 $ 2,436 $ 8,591 $ 3,204 $ 40,589 Information pertaining to securities with gross unrealized losses at September 30, 2022 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: Less than Twelve months Over Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Losses Fair Value Losses Fair Value Losses Fair Value (In Thousands) September 30, 2022 Securities Available-for-Sale: US Treasuries & Agencies $ 16 $ 14,481 $ — $ — $ 16 $ 14,481 Mortgage-backed & SBA Securities 287 1,175 419 1,791 706 2,966 Municipal Securities 2,562 20,731 1,375 2,742 3,937 23,473 $ 2,865 $ 36,387 $ 1,794 $ 4,533 $ 4,659 $ 40,920 In management’s opinion, the unrealized losses primarily reflect changes in interest rates subsequent to the acquisition of specific securities. The Company had 97 and 143 securities in an unrealized loss position of less than twelve months at June 30, 2023 and September 30, 2022, respectively which included 74 securities acquired from Citizens Bank of Cape Vincent in September 2022, and 56 and 25 securities in an unrealized loss position of 12 months or more at June 30, 2023 and September 30, 2022, respectively. The Company has the intent and the ability to hold such securities until maturity or market price recovery. Management believes that the unrealized losses do not represent other-than-temporary impairment of the securities.

LOANS RECEIVABLE AND ALLOWANCE

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES	9 Months Ended
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES	Jun. 30, 2023
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES	NOTE 6 — LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES The components of loans receivable at June 30, 2023 (unaudited) are as shown on the table below: As of June 30, 2023 Originated Acquired Total Loans (unaudited) (In Thousands) Real Estate Mortgages Residential $ 74,364 $ 28,292 $ 102,656 Commercial 6,754 4,754 11,508 Construction 1,779 226 2,005 Home Equity 1,870 — 1,870 Other Loans: Commercial Non-Mortgage 1,300 766 2,066 Automobile 2,722 255 2,977 Passbook 120 263 383 Consumer 1,985 725 2,710 Total Loans 90,894 35,281 126,175 Net Deferred Loan Costs 523 — 523 Net Discounts on Acquired Loans — (1,038) (1,038) Allowance for Loan Losses (598) — (598) Loans, Net $ 90,819 $ 34,243 $ 125,062 The components of loans receivable at September 30, 2022 are as shown on the table below: Year Ended September 30, 2022 Originated Acquired Total Loans (In Thousands) Real Estate Mortgages: Residential $ 71,061 $ 28,302 $ 99,363 Loans Held For Sale — — — Commercial 7,450 4,876 12,326 Construction 2,866 1,891 4,757 Home Equity 2,464 — 2,464 Other Loans: Commercial Non-Mortgage 993 1,071 2,064 Automobile 1,947 329 2,276 Passbook 101 439 540 Consumer 1,496 1,074 2,570 Total Loans 88,378 37,982 126,360 Net Deferred Loan Costs 577 — 577 Net Discounts on Acquired Loans — (1,205) (1,205) Allowance for Loan Losses (621) — (621) Loans, Net $ 88,334 $ 36,777 $ 125,111 The outstanding principal balance and the related carrying amount of the Company’s loans acquired in the Citizens Bank of Cape Vincent acquisition were as shown on the table below at June 30, 2023 (unaudited) and September 30, 2022: June 30, 2023 September 30, 2022 (unaudited) (in thousands) Acquired Credit Impaired Loans Outstanding Principal Balance $ — $ — Carrying Amount — — Acquired Non-Credit Impaired Loans Outstanding Principal Balance $ 35,281 $ 37,982 Carrying Amount 34,243 36,777 Total Acquired Loans Outstanding Principal Balance $ 35,281 $ 37,982 Carrying Amount 34,243 36,777 The Company had not acquired any loans with deteriorated credit quality as of September 30, 2022. The Company did acquire a commercial secured performing loan which has been classified as substandard to ensure proper oversight and monitoring of the credit. The credit has performed in accordance with its modified terms for over two years. The Company sells first mortgage loans to third parties in the course of business, principally to FHLB, a large purchaser of loans. These serviced loans are not included in the balances of the accompanying statements of financial condition, but the Company continues to collect the principal and interest payments for a servicing fee. At June 30, 2023 and September 30, 2022, the total outstanding principal balance on serviced loans was $12.6 million, and $13.3 million, respectively. Citizens Bank of Cape Vincent did not sell residential mortgage loans to third parties. Allowance for Loan Losses The Company has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the Company’s portfolio. For purposes of determining the allowance for loan losses, the Company segments certain loans in its portfolio by product type. The Company’s loans are segmented into the following pools: commercial, real estate and consumer. The Company also sub-segments two of these segments into classes based on the associated risks within those segments. Real estate loans are divided into the following two classes: (a) residential and (b) commercial. Commercial loans are divided into two classes: (a) secured and (b) unsecured. Each class of loan requires significant judgment to determine the estimation method that fits the credit risk characteristics of its portfolio segment. The tables below present, by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the nine months ended June 30, 2023 (unaudited) and the year ended September 30, 2022. Allowance for loan losses and recorded investment in loans for the nine months ended June 30, 2023 was as follows: Real Real Estate Commercial Commercial Estate Commercial Secured Unsecured Consumer Total (In Thousands) (Unaudited) Allowance for Credit Losses: Beginning Balance $ 548 $ 55 $ 4 $ 1 $ 13 $ 621 Charge-offs (106) — — (1) (12) (119) Recoveries 1 — — — 3 4 Transfer (18) — — 1 17 — Provisions 92 — — — — 92 Ending Balance $ 517 $ 55 $ 4 $ 1 $ 21 $ 598 Ending Balance: Individually Evaluated for Impairment $ — $ — $ — $ — $ — $ — Ending Balance: Collectively $ 517 $ 55 $ 4 $ 1 $ 21 $ 598 Loans Receivable: Ending Balance $ 106,531 $ 11,508 $ 2,055 $ 11 $ 6,070 $ 126,175 Less: Acquired Loans 28,518 4,754 766 — 1,243 35,281 Ending Balance: Individually Evaluated for Impairment $ — $ 302 $ — $ — $ — $ 302 Ending Balance: Collectively Evaluated for Impairment $ 78,013 $ 6,452 $ 1,289 $ 11 $ 4,827 $ 90,592 Allowance for loan losses and recorded investment in loans for the 3 months ended June 30, 2023 was as follows: Real Estate Real Estate Commercial Commercial Residential Commercial Secured Unsecured Consumer Total (In Thousands) (Unaudited) Allowance for Credit Losses: Beginning Balance $ 598 $ 55 $ 4 $ 1 $ 17 $ 675 Charge-offs (106) — — (1) (3) (110) Recoveries 1 — — — 2 3 Transfer (6) — — 1 5 — Provisions 30 — — — — 30 Ending Balance $ 517 $ 55 $ 4 $ 1 $ 21 $ 598 Ending Balance: Individually Evaluated for Impairment $ — $ — $ — $ — $ — $ — Ending Balance: Collectively $ 517 $ 55 $ 4 $ 1 $ 21 $ 598 Allowance for loan losses and recorded investment in loans for the nine months ended June 30, 2022 was as follows: Real Estate Real Estate Commercial Commercial Residential Commercial Secured Unsecured Consumer Total (In Thousands) Beginning Balance $ 541 $ 64 $ 4 $ 1 $ 10 $ 620 Charge-offs (45) — — — (5) (50) Recoveries 5 — — — 4 9 Transfer (1) (4) — — 5 — Provisions 46 — — — — 46 Ending Balance $ 546 $ 60 $ 4 $ 1 $ 14 $ 625 Ending Balance: Individually Evaluated for Impairment $ 70 $ — $ — $ — $ — $ 70 Ending Balance: Collectively $ 476 $ 60 $ 4 $ 1 $ 14 $ 555 Allowance for loan losses and recorded investment in loans for the three months ended June 30, 2022 was as follows: Real Estate Real Estate Commercial Commercial Residential Commercial Secured Unsecured Consumer Total (In Thousands) Beginning Balance $ 530 $ 60 $ 4 $ 1 $ 14 $ 609 Charge-offs — — — — (2) (2) Recoveries 2 — — — 1 3 Transfer (1) — — — 1 — Provisions 15 — — — — 15 Ending Balance $ 546 $ 60 $ 4 $ 1 $ 14 $ 625 Ending Balance: Individually Evaluated for Impairment $ 70 $ — $ — $ — $ — $ 70 Ending Balance: Collectively $ 476 $ 60 $ 4 $ 1 $ 14 $ 555 Allowance for loan losses and recorded investment in loans for the year ended September 30, 2022 was as follows: Real Estate Real Estate Commercial Commercial Residential Commercial Secured Unsecured Consumer Total (In Thousands) Loans Receivable: Ending Balance $ 106,584 $ 12,326 $ 2,039 $ 25 $ 5,386 $ 126,360 Less: Acquired Loans 30,193 4,876 1,071 — 1,842 37,982 Ending Balance: Individually Evaluated for Impairment $ 185 $ 278 $ — $ — $ — $ 463 Ending Balance: Collectively Evaluated for Impairment $ 76,206 $ 7,172 $ 968 $ 25 $ 3,544 $ 87,915 The following table presents performing and nonperforming real estate loans based on payment activity as of June 30, 2023 and September 30, 2022. Real estate loans include residential and commercial mortgages, construction loans and home equity loans. Payment activity is reviewed by management on a quarterly basis to determine how loans are performing. Loans are considered to be nonperforming when the number of days delinquent is greater than 89 days. The loan may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally twelve consecutive months of current payments with no past due occurrences. Nonperforming loans also include certain loans that have been modified in troubled debt restructuring (“TDR”) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six consecutive months. Performing and nonperforming real estate loans as of June 30, 2023 and September 30, 2022 were as follows: As of June 30, As of September 30, 2023 2022 (unaudited) (In Thousands) Performing $ 117,611 $ 118,293 Nonperforming 428 617 Total $ 118,039 $ 118,910 Credit quality indicators as of June 30, 2023 and September 30, 2022 are as follows: Internally assigned grade as a subsection of the “Pass” credit risk profile: 1 — Good Loans to an individual or a well-established business in excellent financial condition with strong liquidity and a history of consistently high levels of earnings and cash flow and debt service capacity. Supported by high quality financial statements (including recent statements and sufficient historical fiscal statements), borrower has excellent repayment history and possesses a documented source of repayment. Industry conditions are favorable and business borrower’s management is well qualified with sufficient debt. Borrower and/or key personnel exhibit unquestionable character. Good loans may be characterized by high quality liquid collateral and very strong personal guarantors. 2 — Satisfactory Loans to borrowers with many of the same qualities as a good loan, however, certain characteristics are not as strong (i.e. cyclical nature of earnings, lower quality financial statements, less liquid collateral, less favorable industry trends, etc.). Borrower still has good credit, will exhibit financial strength, excellent repayment history, and good present and future earnings potential. The primary source of repayment is readily apparent with strong secondary sources of repayment available. Management is capable, with sufficient depth, and character of borrower is well established. 3 — Acceptable Loans to borrowers of average strength with acceptable financial condition (businesses fall within acceptable tolerances of other similar companies represented in the RMA annual statement studies), with satisfactory record of earnings and sufficient historical and projected cash flow to service the debt. Business borrower’s management is capable and reliable. Borrower has satisfactory repayment history, and primary and secondary sources of repayment can be clearly identified. Acceptable loans may exhibit some deficiency or vulnerability to changing economic or industry conditions. 4 — Watch Loans in this category have a chance of resulting in a loss. Characteristics of this level of assets include, but are not limited to; the borrower has only a fair credit rating with minimal recent credit problems, cash flow is currently adequate to meet the required debt repayments, but will not be sufficient in the event of significant adverse developments, borrower has limited access to alternative sources of finance, possibly at unfavorable terms, some management weaknesses exist, collateral, generally required, is sufficient to make likely the recovery of the value of the loan in the event of default, but liquidating the collateral may be difficult or expensive. In addition, the guarantor would achieve this credit rating if it borrowed individually from the Bank. 5 — Special Mention Loans in this category are usually made to well establish businesses with local operations. Special Mention loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special mention category is not to be used as a means of avoiding a clear decision to classify a loan or pass it without criticism. Neither should it include loans listed merely “for the record” when uncertainties and complexities, perhaps coupled with large size, create some reservations about the loan. If weaknesses or evidence of imprudent handling cannot be identified, inclusion of such loans in Special Mention is not justified. Special mention loans have characteristics which corrective management action would remedy. Loans in this category should remain for a relatively short period of time. 6 — Substandard Loans classified as substandard are inadequately protected by the current sound net worth or paying capacity of the borrower or the collateral pledged, if any. Loans in this category have well defined weaknesses that jeopardize the repayment. Loans which might be included in the category have potential for problems due to weakening economic or market conditions. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. Substandard loans may include loans which are likely to require liquidation of collateral to effect repayment, and other loans where the character or ability to repay has become suspect. Loss potential, while existing in the aggregate amount of the substandard assets, does not have to exist in individual assets classified substandard. 7 — Doubtful Loans classified as doubtful have all the weaknesses in those classified as substandard with the added characteristics that the weaknesses make collection or liquidation in full on the basis of current existing facts, conditions, and value highly questionable and improbable. Although possibility of loss is extremely high, classification of these loans as loss has been deferred to specific pending factors or events, which may strengthen the loan value (i.e., possibility of additional collateral, injection of capital, collateral liquidation, debt structure, economic recovery, etc.). 8 — Loss Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The information for each of the credit quality indicators is updated on a quarterly basis in conjunction with the determination of the adequacy of the allowance for loan losses. Credit risk profile for originated loans held in portfolio and loans held for sale, by internally assigned grade as of June 30, 2023: Pass Special Mention Substandard Doubtful Total (unaudited) (In Thousands) Mortgage Loans on Real Estate Residential, One to Four Family $ 76,143 $ — $ — $ — $ 76,143 Home Equity 1,870 — — — 1,870 Commercial 6,452 — 302 — 6,754 Total Mortgage Loans on Real Estate 84,465 — 302 — 84,767 Commercial 1,300 — — — 1,300 Consumer 4,827 — — — 4,827 Total Loans $ 90,592 $ — $ 302 $ — $ 90,894 Credit risk profile for acquired loans held in portfolio and loans held for sale, by internally assigned grade as of June 30, 2023: Pass Special Mention Substandard Doubtful Total (unaudited) (In Thousands) Mortgage Loans on Real Estate Residential, One to Four Family $ 28,518 $ — $ — $ — $ 28,518 Home Equity — — — — — Commercial 4,256 206 292 — 4,754 Total Mortgage Loans on Real Estate 32,774 206 292 — 33,272 Commercial 766 — — — 766 Consumer 1,243 — — — 1,243 Total Loans $ 34,783 $ 206 $ 292 $ — $ 35,281 Credit risk profile for originated loans held in portfolio and loans held for sale, by internally assigned grade as of September 30, 2022: Pass Special Mention Substandard Doubtful Total (In Thousands) Mortgage Loans on Real Estate Residential, One to Four Family $ 73,927 $ — $ — $ — $ 73,927 Home Equity 2,464 — — — 2,464 Commercial 7,172 — 278 — 7,450 Total Mortgage Loans on Real Estate 83,563 — 278 — 83,841 Commercial 993 — — — 993 Consumer 3,544 — — — 3,544 Total Loans $ 88,100 $ — $ 278 $ — $ 88,378 Credit risk profile for acquired loans by internally assigned grade as of September 30, 2022: Pass Special Mention Substandard Doubtful Total (In Thousands) Mortgage Loans on Real Estate Residential, One to Four Family $ 30,193 $ — $ — $ — $ 30,193 Home Equity — — — — — Commercial 4,580 — 296 — 4,876 Total Mortgage Loans on Real Estate 34,773 — 296 — 35,069 Commercial 1,071 — — — 1,071 Consumer 1,842 — — — 1,842 Total Loans $ 37,686 $ — $ 296 $ — $ 37,982 Aging Analysis of Past Due Financing Receivables by Class Following are tables which include an aging analysis of the recorded investment of past due financing receivables as of June 30, 2023 (unaudited) and September 30, 2022. Also included are loans that are greater than 89 days past due as to interest and principal still accruing, because they are (1) well secured and in the process of collection or (2) real estate loans or loans exempt under regulatory rules from being classified as nonaccruals. An aged analysis of past due financing receivables by class of financing receivable for originated loans held in portfolio and loans held for sale as of June 30, 2023 are as follows: 90 Days or Total 90 Days or 30 – 59 Days 60 – 89 Days Greater Total Financing Greater and Past Due Past Due Past Due Past Due Current Receivable Still accruing (unaudited) (In Thousands) Residential Mortgage $ 65 $ 443 $ 241 $ 749 $ 77,264 $ 78,013 $ — Commercial Mortgage — — 106 106 6,648 6,754 — Commercial — — — — 1,300 1,300 — Consumer 10 — — 10 4,817 4,827 — Total Loans $ 75 $ 443 $ 347 $ 865 $ 90,029 $ 90,894 $ — An aged analysis of past due financing receivable by class of financing receivable for acquired loans as of June 30, 2023 are as follows: 90 Days or Total 90 Days or 30 – 59 Days 60 – 89 Days Greater Total Financing Greater and Past Due Past Due Past Due Past Due Current Receivable Still accruing (unaudited) (In Thousands) Residential Mortgage $ 33 $ — $ 62 $ 95 $ 28,423 $ 28,518 $ — Commercial Mortgage — — — — 4,754 4,754 — Commercial — — — — 766 766 — Consumer — — — — 1,243 1,243 — Total Loans $ 33 $ — $ 62 $ 95 $ 35,186 $ 35,281 $ — An aged analysis of past due financing receivables by class of financing receivable for originated loans held in portfolio and loans held for sale as of September 30, 2022, are as follows: 90 Days or Greater Total Greater 30 – 59 Days 60 – 89 Days 90 Days or Total Financing and Still Past Due Past Due Past Due Past Due Current Receivable accruing (In Thousands) Residential Mortgage $ 359 $ 621 $ 547 $ 1,527 $ 74,864 $ 76,391 $ — Commercial Mortgage — — 40 40 7,410 7,450 — Commercial — 15 — 15 978 993 — Consumer — — 1 1 3,543 3,544 — Total Loans $ 359 $ 636 $ 588 $ 1,583 $ 86,795 $ 88,378 $ — An aged analysis of past due financing receivables by class of financing receivable for acquired loans as of September 30, 2022, are as follows: 90 Days or Greater Total Greater 30 – 59 Days 60 – 89 Days 90 Days or Total Financing and Still Past Due Past Due Past Due Past Due Current Receivable accruing (In Thousands) Residential Mortgage $ 144 $ — $ — $ 144 $ 30,049 $ 30,193 $ — Commercial Mortgage — — — — 4,876 4,876 — Commercial — — — — 1,071 1,071 — Consumer 73 — 10 83 1,759 1,842 — Total Loans $ 217 $ — $ 10 $ 227 $ 37,755 $ 37,982 $ — Impaired Loans There were no recorded investment balances for impaired financing receivables at June 30, 2023 or September 30, 2022. Troubled Debt Restructurings (“TDR”) There were no new loans modified as TDR during the nine months ended June 30, 2023, or the fiscal year ended September 30, 202. There were no TDR’s in payment default that were previously classified as a TDR in the previous twelve months. At June 30, 2023 and September 30, 2022 there were no commitments to lend additional funds to any borrower whose loan terms had been modified in a troubled debt restructuring. Commitments and Contingencies Outstanding letters of credit written are conditional commitments issued by the Company to guarantee the performance by a customer to a third party. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making conditional obligations as it does for on-balance sheet instruments. The Company had four standby letters of credit totaling $176,000 as of June 30, 2023. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. The Company requires collateral and personal guarantees supporting these letters of credit as deemed necessary. Management believes that the proceeds obtained through a liquidation of such collateral in the event of a default, and the enforcement of personal guarantees would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	9 Months Ended
GOODWILL AND INTANGIBLE ASSETS	Jun. 30, 2023
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	NOTE 7: GOODWILL AND INTANGIBLE ASSETS The goodwill and intangible assets arising from the acquisition of Citizens Bank of Cape Vincent is accounted for in accordance with the accounting guidance in FASB ASC Topic 350 for Intangibles — Goodwill and Other. The Company will perform its annual impairment evaluation on September 30 or more frequently if events and circumstances indicate that the fair value is less than its carrying value. Goodwill and core deposit intangibles at June 30, 2023 (unaudited) and September 30, 2022 are summarized as follows: Nine Months Ended June 30, Year ended September 30, 2023 2022 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount (In Thousands) Goodwill $ 3,956 $ — $ 3,956 $ 3,956 $ — $ 3,956 Core Deposit Intangible 2,542 347 2,195 2,542 — 2,542 $ 6,498 $ 347 $ 6,151 $ 6,498 $ — $ 6,498 No impairments of goodwill were recognized for the fiscal year ended September 30, 2022. Amortization expense for other intangible assets was $347,000 and $-0- for the nine months ending June 30, 2023 and the fiscal year ended September 30, 2022, respectively, as well as the estimated aggregate amortization expense for each of the five succeeding fiscal years as summarized on the following page: Total Amortization Expense Fiscal Year Ended September 30, (in thousands) 2023 $ 462 2024 416 2025 370 2026 323 2027 277 $ 1,848

FINANCIAL INSTRUMENTS WITH OFF-

FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET CREDIT RISK	9 Months Ended
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET CREDIT RISK	Jun. 30, 2023
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET CREDIT RISK
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET CREDIT RISK	NOTE 8 — FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET CREDIT RISK The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and to sell loans. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated statements of financial condition. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on- balance sheet instruments. A summary of financial instrument commitments at June 30 (unaudited) and September 30 is shown below. Nine Months Ended June 30, For the Year Ended September 30 2023 2022 (unaudited) (in thousands) Commitments to Grant Loans $ 1,438 $ 1,759 Unfunded Commitments Under Lines of Credit 5,822 6,455 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the customer and generally consists of real estate.

REGULATORY CAPITAL REQUIREMENTS

REGULATORY CAPITAL REQUIREMENTS	9 Months Ended
REGULATORY CAPITAL REQUIREMENTS	Jun. 30, 2023
REGULATORY CAPITAL REQUIREMENTS.
REGULATORY CAPITAL REQUIREMENTS	NOTE 9 — REGULATORY CAPITAL REQUIREMENTS The Bank is subject to regulatory capital requirements administered by banking regulators. Failure to meet minimum capital requirements can trigger certain mandatory — and possibly additional discretionary — actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. U.S. Basel III Capital Rules In July 2013, the Federal Reserve Board approved final rules (the “U.S. Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations and implementing the Basel Committee on Banking Supervision’s December 2010 framework for strengthening international capital standards. The U.S. Basel III Capital Rules substantially revised the risk-based capital requirements applicable to bank holding companies and depository institutions. The minimum regulatory capital requirements established by the U.S. Basel III Capital Rules became effective for the Bank on January 1, 2016 and become fully phased in on January 1, 2019. The U.S. Basel III Capital Rules require the Bank to: ● Meet a minimum Common Equity Tier 1 Capital ratio of 4.50% of risk-weighted assets and a minimum Tier 1 Capital of 6.00% of risk-weighted assets; ● Continue to require a minimum Total Capital ratio of 8.00% of risk-weighted assets and a minimum Tier 1 Leverage Capital ratio of 4.00% of average assets; ● Maintain a “capital conservation buffer” of 2.50% above the minimum risk-based capital requirements, which must be maintained to avoid restrictions on capital distributions and certain discretionary bonus payments; and ● Comply with a revised definition of capital to improve the ability of regulatory capital instruments to absorb losses. Certain non-qualifying capital instruments, including cumulative preferred stock and TruPS, will be excluded as a component of Tier 1 capital for institutions of the Company’s size. The U.S. Basel III Capital Rules use a standardized approach for risk weightings that expand the risk- weightings for assets and off-balance sheet exposures from the previous 0%, 20%, 50% and 100% categories to a much larger and more risk-sensitive number of categories, depending on the nature of the assets and off- balance sheet exposures, resulting in higher risk weights for a variety of asset categories. The capital conservation buffer at June 30, 2023 and September 30, 2022 is 2.50%. The Bank exceeded these “well-capitalized” and “capital conservation buffer” ratios for all periods presented. As of June 30, 2023 and September 30, 2022, the Bank’s capital levels meet the fully phased-in minimum capital requirements, including the new capital conservation buffers, as prescribed in the U.S. Basel III Capital Rules. As of June 30, 2023 and September 30, 2022, the most recent notification from Federal Deposit Insurance Corporation (“FDIC”) categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since the most recent notification that management believes have changed the Bank’s prompt corrective action category. There are no comparable minimum capital requirements that apply to the Company as a savings and loan holding company. The Bank’s actual and required capital amounts and ratios are presented in the table below: Minimum to be Well Capitalized Under Prompt Minimum Capital Corrective Action Actual Requirement Provisions Amount ($) Ratio (%) Amount ($) Ratio (%) Amount ($) Ratio (%) (In Thousands) As of June 30, 2023 (unaudited) Total Capital (to Risk-Weighted Assets) $ 22,606 20.2 ≥ $ 8,968 ≥ 8.0 ≥ $ 11,210 ≥ 10.0 Tier 1 Capital (to Risk-Weighted Assets) 22,008 19.6 ≥ 6,726 ≥ 6.0 ≥ 8,968 ≥ 8.0 Tier 1 Common Equity (to Risk-Weighted Assets) 22,008 19.6 ≥ 5,045 ≥ 4.5 ≥ 7,287 ≥ 6.5 Tier 1 Leverage Ratio (to Adjusted Total Assets) 22,008 11.0 ≥ 7,986 ≥ 4.0 ≥ 9,983 ≥ 5.0 Capital Conservation Buffer on Tier 1 Common Equity 22,606 12.2 ≥ 7,847 ≥ 7.0 ≥ N/A ≥ N/A As of September 30, 2022 Total Capital (to Risk-Weighted Assets) $ 22,662 19.9 ≥ $ 9,110 ≥ 8.0 ≥ $ 11,387 ≥ 10.0 Tier 1 Capital (to Risk-Weighted Assets) 22,041 19.4 ≥ 6,832 ≥ 6.0 ≥ 9,110 ≥ 8.0 Tier 1 Common Equity (to Risk-Weighted Assets) 22,041 19.4 ≥ 5,124 ≥ 4.5 ≥ 7,402 ≥ 6.5 Tier 1 Leverage Ratio (to Adjusted Total Assets) 22,041 15.8 ≥ 5,582 ≥ 4.0 ≥ 6,978 ≥ 5.0 Capital Conservation Buffer on Tier 1 Common Equity 22,662 11.9 ≥ 7,971 ≥ 7.0 ≥ N/A ≥ N/A Prior to March 26, 2020, the Bank was required to maintain an average cash reserve balance in vault cash with the Federal Reserve Bank (“FRB”). An FRB announcement on March 15, 2020 reduced the reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated the reserve requirement for the Bank. The Municipal Bank’s actual and required capital amounts and ratios are as follows: Minimum to be Well Capitalized Under Prompt Minimum Capital Corrective Action Actual Requirement Provisions Amount ($) Ratio (%) Amount ($) Ratio (%) Amount ($) Ratio (%) (In Thousands) As of June 30, 2023 (unaudited) Total Capital (to Risk-Weighted Assets) $ 12,853 251.8 ≥ $ 408 ≥ 8.0 ≥ $ 511 ≥ 10.0 Tier 1 Capital (to Risk-Weighted Assets) 12,853 251.8 ≥ 306 ≥ 6.0 ≥ 408 ≥ 8.0 Tier 1 Common Equity (to Risk-Weighted Assets) 12,853 251.8 ≥ 230 ≥ 4.5 ≥ 332 ≥ 6.5 Tier 1 Leverage Ratio (to Adjusted Total Assets) 12,853 37.2 ≥ 1,381 ≥ 4.0 ≥ 1,726 ≥ 5.0 Capital Conservation Buffer on Tier 1 Common Equity 12,853 243.8 ≥ 357 ≥ 7.0 ≥ N/A ≥ N/A As of September 30, 2022 Total Capital (to Risk-Weighted Assets) $ 12,160 136.1 ≥ $ 715 ≥ 8.0 ≥ $ 894 ≥ 10.0 Tier 1 Capital (to Risk-Weighted Assets) 12,160 136.1 ≥ 536 ≥ 6.0 ≥ 715 ≥ 8.0 Tier 1 Common Equity (to Risk-Weighted Assets) 12,160 136.1 ≥ 402 ≥ 4.5 ≥ 581 ≥ 6.5 Tier 1 Leverage Ratio (to Adjusted Total Assets) 12,160 35.7 ≥ 1,364 ≥ 4.0 ≥ 1,705 ≥ 5.0 Capital Conservation Buffer on Tier 1 Common Equity 12,160 128.1 ≥ 625 ≥ 7.0 ≥ N/A ≥ N/A

RETAINED EARNINGS

RETAINED EARNINGS	9 Months Ended
RETAINED EARNINGS	Jun. 30, 2023
RETAINED EARNINGS
RETAINED EARNINGS	NOTE 10 — RETAINED EARNINGS Cambray Mutual Holding Company (“Cambray”) waived dividends payable by the Company on the shares owned by Cambray in fiscal years 2022 and 2021. The total cumulative dividends waived by Cambray was $6,384,000 as of June 30, 2023. The dividends waived by Cambray are considered a restriction on the retained earnings of the Company. The Company paid a semi-annual dividend of $0.10 per share totaling $204,000 in March 2023. It declared share

INTEREST RATE DERIVATIVES

INTEREST RATE DERIVATIVES	9 Months Ended
INTEREST RATE DERIVATIVES	Jun. 30, 2023
INTEREST RATE DERIVATIVES
INTEREST RATE DERIVATIVES	NOTE 11 — INTEREST RATE DERIVATIVES Derivative instruments are entered into primarily as a risk management tool of the Company. It has entered into several interest rate swap agreements whereby it pays a fixed rate and receives a variable rate on a notional amount. It did so to hedge the cost of certain borrowings and to increase the interest rate sensitivity of certain assets. Financial derivatives are recorded at fair value as other assets or liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as a part of a hedging relationship. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability are currently recognized in current year earnings. Amounts recognized in earnings as noninterest gain for the three months ended June 30, 2023 and 2022 were $40,000 and $434,000, respectively. Amounts recognized in earnings as noninterest gain (loss) for the nine months ended June 30, 2023 and 2022 were $(783,000) and $1,527,000, respectively. The gain/loss is the result of the swaps market value fluctuations with long-term bond rates and projected short-term rates. See Note 12 for further discussion on the fair value of the interest rate derivative. Information about interest rate swap agreements at June 30, 2023 (unaudited) and September 30, 2022 is as shown on the following table: Weighted Estimated Average Rate Weighted Fair Value Notional Contract Average Rate (Liability) Amount Pay Rate Received Rate Asset (In Thousands) (In Thousands) June 30, 2023 (unaudited) Interest Rate Swaps on Mortgage Loans $ — 0.00 % 0.00 % $ — Interest Rate Swaps on FHLB Borrowings and Bank Deposits $ 5,500 2.04 % 5.35 % $ 268 September 30, 2022 Interest Rate Swaps on Mortgage Loans $ 11,000 2.41 % 2.99 % $ 756 Interest Rate Swaps on FHLB Borrowings and Bank Deposits $ 7,000 2.11 % 2.86 % $ 295 The following table is a summary of the fair value of outstanding derivatives and their presentation in the consolidated statements of financial condition as of June 30, 2023 (unaudited) and September 30, 2022: As of June 30, As of September 30, 2023 2022 (unaudited) (In Thousands) Fair Value Hedge – Interest Rate Swap Accrued Interest Receivable and Other Assets $ 268 $ 1,051 The notional amount of interest rate swap agreements entered into, that were outstanding at June 30, 2023 (unaudited) and September 30, 2022, mature as follows for the years ended September 30: June 30, September 30, 2023 2022 (unaudited) (in thousands) 2023 $ — $ 1,500 2024 — — 2025 4,500 4,500 2026 1,000 4,000 2027 — — 2028 — 6,000 2029 — 2,000 $ 5,500 $ 18,000

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
FAIR VALUE MEASUREMENTS	Jun. 30, 2023
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 12 — FAIR VALUE MEASUREMENTS The Company follows the guidance of FASB ASC 820, Fair Value Measurements and Disclosures Determination of Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosures Recent fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value, a reasonable point within the range, is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. ● Level 1 — Valuation is based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. ● Level 2 — Valuation is based on inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. ● Level 3 — Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. The types of instruments valued based on quoted market prices in active markets include most U.S. government and agency securities, liquid mortgage products, active listed equities and most money market securities. Such instruments are generally classified within Level 1 or Level 2 of the fair value hierarchy. As required by this guidance, the Company does not adjust the quoted price for such instruments. The types of instruments valued based on quoted prices in markets that are not active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency include most investment- grade and high-yield corporate bonds, less liquid mortgage products, less liquid equities, state, municipal and provincial obligations, and certain physical commodities. Such instruments are generally classified within Level 2 of the fair value hierarchy. The Company utilizes interest rate swap agreements based on the 3-month London Interbank Offered Rate (LIBOR). The Company generally determines the fair value of its interest rate swap agreements using externally developed pricing models based on market observable inputs and therefore classifies such valuations as Level 2. Currently 3-Month LIBOR cessation is set for June 30, 2023, which the Company has addressed with an amended agreement with Federal Home Loan Bank of New York. On October 23, 2020, the International Swaps and Derivatives Association, Inc. (“ISDA”) published the ISDA 2020 IBOR Fallbacks Protocol to enable parties to Protocol Covered Documents to amend the terms of those documents by introducing new triggers and fallbacks for certain interbank offered rates referred to in those documents. The Company and FHLBNY agreed to amend the ISDA Master Agreement to incorporate the terms of the IBOR Fallbacks Protocols. Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions. Valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or market value. Market value is measured based on the value of the collateral securing these loans and is classified at a level 3 in the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory and/or accounts receivable. The value of business equipment, inventory and accounts receivable collateral is based on the net book value on the business’ financial statements and, if necessary, discounted based on management’s review and analysis. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation and/or management’s expertise and knowledge of the client’s business. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified previously. Foreclosed properties are adjusted to fair value upon transfer of the loans to foreclosed properties. Subsequently, foreclosed properties are carried at the lower of carrying value or fair value. The estimated fair value for foreclosed properties included in Level 3 is determined by independent market-based appraisals and other available market information, less costs to sell, that may be reduced further based on market expectations or an executed sales agreement. If fair value of the collateral deteriorates subsequent to initial recognition, the Company records the foreclosed properties as a nonrecurring Level 3 adjustment. Valuation techniques are consistent with those techniques applied in prior periods. The following table present the assets required to be measured and reported on a recurring basis on the Company’s Consolidated Statements of Financial Condition at their fair value as of June 30, 2023 (unaudited) and September 30, 2022 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Quoted Prices in Active Markets for Identical Significant Other Significant Total Assets/Liabilities Observable Unobservable Fair Value (Level 1 ) Inputs (Level 2) Inputs (Level 3) (In Thousands) June 30, 2023 (unaudited) Available-for-Sale Securities U.S. Government Treasuries $ 3,677 $ — $ 3,677 $ — U.S. Government Agencies 11,775 — 11,775 — Mortgaged-Backed Securities 8,603 — 8,603 — Municipal Securities 20,663 — 20,663 — SBA Securities 2,511 — 2,511 — $ 47,229 $ — $ 47,229 $ — Interest Rate Swap Derivative $ 268 $ — $ 268 $ — September 30, 2022 Available-for-Sale Securities U.S. Government Treasuries $ 4,159 $ — $ 4,159 $ — U.S. Government Agencies 10,323 — 10,323 — Mortgaged-Backed Securities 8,440 — 8,440 — Municipal Securities 24,944 — 24,944 — SBA Securities 1,779 — 1,779 — $ 49,645 $ — $ 49,645 $ — Interest Rate Swap Derivative $ 1,051 $ — $ 1,051 $ — Certain assets and liabilities may be required to be measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets and liabilities to be assessed for impairment or recorded at the lower of cost or fair value. Fair values of assets and liabilities measured on a nonrecurring basis at June 30, 2023 (unaudited) and September 30, 2022 are shown on the following table: Quoted Prices in Active Markets for Identical Significant Other Significant Total Assets/Liabilities Observable Unobservable Fair Value (Level 1 ) Inputs (Level 2) Inputs (Level 3) (In Thousands) June 30, 2023 (unaudited) Foreclosed Real Estate, Net $ 132 $ — $ — $ 132 September 30, 2022 Foreclosed Real Estate, Net $ 75 $ — $ — $ 75 The table below presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Level 3 inputs were used to determine fair value at June 30, 2023 (unaudited) and at September 30, 2022. Valuation Techniques Unobservable Inputs Weighted Average Range Impaired Loans Appraisal of Collateral Appraisal Adjustments 25% - 25% (25%) (Sales Approach) Costs to Sell 6% - 10% (8%) Discounted Cash Flow Foreclosed Assets Appraisal of Collateral Appraisal Adjustments 25% - 25% (25%) (Sales Approach) Costs to Sell 6% - 10% (8%) Accounting guidance requires disclosures of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate their fair values. Certain financial instruments and all non-financial instruments are excluded from the scope of the guidance. The estimated fair values of financial instruments at June 30, 2023 (unaudited) and at September 30, 2022 are as follows: June 30, 2023 Carrying Value Fair Value (unaudited) (In Thousands) Financial Assets Cash and due from banks $ 6,041 $ 6,041 Interest bearing deposits with banks 1,689 1,689 Time deposits in other financial institutions 728 728 Available for sale debt securities 47,229 47,229 Held to maturity debt securities 1 1 Acquired loans 34,243 34,243 Portfolio loans, net of deferred fees 90,819 75,701 Investment in restricted stock 1,393 1,393 Accrued interest receivable 571 571 Interest rate swap derivative 268 268 Financial Liabilities Deposits $ 160,619 $ 114,837 Accrued interest payable 10 10 Accounting guidance requires disclosures of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate their fair values. Certain financial instruments and all non-financial instruments are excluded from the scope of the guidance. The estimated fair values of financial instruments at September 30, 2022 are as follows: September 30, 2022 Carrying Value Fair Value (In Thousands) Financial Assets Cash and due from banks $ 10,109 $ 10,109 Interest bearing deposits with banks 4,235 4,235 Time deposits in other financial institutions 718 718 Available for sale debt securities 49,645 49,645 Held to maturity debt securities 1 1 Acquired loans 36,777 36,777 Portfolio loans, net of deferred fees 88,334 71,900 Investment in restricted stock 895 895 Accrued interest receivable 591 591 Interest rate swap derivative 1,051 1,051 Financial Liabilities Deposits $ 183,951 $ 139,318 Accrued interest payable 1 1 The methods and assumptions that were used to estimate the fair value of financial assets and financial liabilities that are measured at fair value on a recurring and non-recurring basis have been previously disclosed. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below: Cash and due from banks — Interest bearing deposits with banks — Time deposits in other financial institutions — Available for sale securities — Held to maturity debt securities — Loans — Loans held for sale — Investments in restricted stock — Accrued interest receivable — Deposits — Accrued interest payable — Interest Rate Swap Derivative —

LEASES

LEASES	9 Months Ended
LEASES	Jun. 30, 2023
LEASES (UNAUDITED)
LEASES (UNAUDITED)	NOTE 13 — LEASES A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On October 1, 2022, the Company adopted ASU No 2016-02 “ Leases” (Topic 842) The leases in which the Company is the lessee include real estate property for a branch office facility under a noncancelable operating lease arrangement, whose current maturity date is November 2023 at which point, it automatically renews for a three-year term at the end of each renewal. The Bank also leases various equipment which expire at various dates through March 2026. All of the Company’s leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated statements of financial condition. Topic 842 requires the Company to recognize a right-of-use (“ROU”) asset and corresponding lease liability included in other assets and other liabilities, respectively, on the Company’s consolidated statements of financial condition. The Company recorded $18,000 of net lease costs during the nine months ending June 30, 2023. There were no net lease costs during the year ended September 30, 2022. The Company’s real estate lease agreements include an option to renew at the Company’s discretion. Future maturities of lease liabilities with initial or remaining terms of one year or more as of June 30, 2023 are as follows: (unaudited) 2023 $ 6,000 2024 24,000 2025 24,000 2026 23,000 2027 13,000 $ 90,000 Lease expense for the branch office amounted to $10,000 for the nine months ended June 30, 2023. Lease expense for the equipment was approximately $8,000 for the nine months ended June 30, 2023. The following tables present information about the Company’s leases and of and for the nine months ended June 30, 2023: Right to use assets $ 25,000 Lease liability $ 25,000 Weighted average remaining lease term: 2.40 years For the nine months ended June 30, 2023: Operating lease expense: $ 17,000 Short-term lease expense: 1,000 Total lease expense: $ 18,000 Cash paid for amounts included in measurement of lease liabilities: $ 18,000

PARENT COMPANY FINANCIAL INFORM

PARENT COMPANY FINANCIAL INFORMATION	9 Months Ended
PARENT COMPANY FINANCIAL INFORMATION	Jun. 30, 2023
PARENT COMPANY FINANCIAL INFORMATION
PARENT COMPANY FINANCIAL INFORMATION	NOTE 14 — PARENT COMPANY FINANCIAL INFORMATION Gouverneur Bancorp, Inc. CONDENSED STATEMENTS OF FINANCIAL CONDITION PARENT COMPANY ONLY As of June 30, 2023 (unaudited) and September 30, 2022 June 30, 2023 Sept 30, 2022 (unaudited) (In Thousands, Except Share and Per Share Amounts) Assets Cash and Cash Equivalents: Cash and due from banks $ 8 $ 2 Interest bearing deposits with banks 52 105 Total Cash and Cash Equivalents 60 107 Accrued interest receivable and other assets 6 4 Investment in subsidiary 25,689 24,670 Total Assets $ 25,755 $ 24,781 Liabilities and Stockholders' Equity Accrued interest payable and other liabilities (499) (48) Total Liabilities (499) (48) Stockholders' Equity Preferred stock, par value $.01 per share; authorized 1,000,000 shares; none issued — — Common stock, par value $.01 per share; authorized, 9,000,000 shares at June 30, 2023, Sept. 30, 2022 issued 2,383,610 shares with 2,031,377 shares outstanding 24 24 Additional paid-in capital 5,035 5,035 Retained earnings 28,156 28,128 Treasury stock, at cost at June 30, 2023, 352,231 shares; Sept. 30, 2022; 352,233 shares (4,070) (4,070) Accumulated other comprehensive loss (2,891) (4,288) Total Stockholders' Equity 26,254 24,829 Total Liabilities and Stockholders' Equity $ 25,755 $ 24,781 See notes to consolidated financial statements Gouverneur Bancorp, Inc. CONDENSED STATEMENTS OF EARNINGS - PARENT COMPANY ONLY For the Three and Nine Months Ended June 30, 2023 and 2022 (unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 (unaudited) (In Thousands) Non-interest Income: Dividend Income $ — $ — $ 204 $ 72 Other 249 344 295 1,155 Total Non-interest Income 249 344 499 1,227 Non-interest Expenses: Professional fees 1 1 9 1 Acquisition fees — — — — Foreclosed assets, net — — — — Other 17 4 55 28 Total Non-interest Expenses 18 5 64 29 Income before Income Tax Expense 231 339 435 1,198 Income Tax Expense (Benefit) — — — — Net Income $ 231 $ 339 $ 435 $ 1,198 Basic and Diluted Earnings Per Share $ 0.11 $ 0.17 $ 0.21 $ 0.59 See notes to consolidated financial statements Gouverneur Bancorp, Inc. CONIDENSED STATEMENTS OF CASH FLOWS - PARENT ONLY Nine Months Ended June 30, 2023 2022 (unaudited) (In Thousands) Cash Flows from Operating Activities: Net income $ 435 $ 1,198 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity in undistributed net earnings of subsidiaries (295) (1,155) Dividends Declared 204 72 Dividend from Subsidiary (204) (72) Change in other Assets 468 84 Change in other Liabilities (451) (59) Net Cash (Used in) Provided by Operating Activities 157 68 Cash Flows from Financing Activities: Cash consideration paid for CBCV acquisition — — Cash dividends paid (204) (72) Net Cash Provided by Financing Activities (204) (72) Net Increase (Decrease) in Cash and Cash Equivalents (47) (4) Cash and Cash Equivalents - Beginning of Year 107 83 Cash and Cash Equivalents - End of Year $ 60 $ 79 Supplementary Cash Flows Information Income taxes paid — —

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2023
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly owned subsidiary, the Municipal Bank. All intercompany accounts and transactions have been eliminated in consolidation. The Municipal Bank is a New York chartered limited purpose commercial bank organized in September 2022 to solicit municipal deposits from local government entities such as towns, cities, school districts, fire districts and other municipalities. The Bank views the Municipal Bank as a source of low cost and stable source of funds that will further the Bank’s commitment to the communities in which the Bank operates. At June 30, 2023, the Municipal Bank held $27.2 million of the Bank’s $47.2 million investment securities portfolio and $19.0 million of the Bank’s deposits. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates in Preparation of Financial Statements	Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses. In connection with the determination of the estimated loan losses, management obtains independent appraisals for significant properties. The Company’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on local economic conditions. While management uses available information to recognize losses on loans and foreclosed assets, further reductions in the carrying amounts of loans and foreclosed assets may be necessary, based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans and foreclosed assets. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans and foreclosed assets may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.
Revenue Recognition	Revenue Recognition The majority of the Company’s revenue stream is generated from interest income on loans and deposits which are outside the scope of “ Revenue from Contracts with Customers”   The Company’s sources of income that fall within the scope of Topic 606 include service charges on deposits, interchange fees and gains and losses on sales of other real estate, all of which are presented as components of noninterest income. On the following page is a summary of the revenue streams that fall within the scope of Topic 606. Service charges on deposits, ATM, and interchange fees Gains and losses on sales of other real estate –
Recently Issued Accounting Standards	Recently Issued Accounting Standards On October 1, 2022, the Company adopted ASU 2021-10 related to guidance on “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistances”, which aims to provide increased transparency by requiring business entities to disclose information about certain types of government assistance they receive in the notes to the financial statements. Current GAAP has no specific authoritative guidance on the accounting for, or the disclosure of, government assistance received by business entities. The amendments in this Update improve financial reporting by requiring disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-02 to its guidance on “Leases (Topic 842)”. The new leases standard applies a right-of-use (ROU) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. The new leases standard requires a lessor to classify leases as either sales-type, direct financing or operating, similar to existing GAAP. Classification depends on the same five criteria used by lessees plus certain additional factors. The subsequent accounting treatment for all three lease types is substantially equivalent to existing GAAP for sales-type leases, direct financing leases, and operating leases. However, the new standard updates certain aspects of the lessor accounting model to align it with the new lessee accounting model, as well as with the new revenue standard under Topic 606. Lessees and lessors are required to provide certain qualitative and quantitative disclosures to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The adoption of this ASU will result in a gross up of the Consolidated Statements of Condition for right-of-use assets and associated lease liabilities for operating leases in which the Company is the lessee. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842 - Leases to address certain narrow aspects of the guidance issued in ASU No. 2016-02. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which amends FASB Accounting Standards Codification (ASC), Leases (Topic 842), to (1) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (2) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. In December 2018, the FASB issued ASU No. 2018-20, Narrow-Scope Improvements for Lessors, which addresses issues related to (1) sales tax and similar taxes collected from lessees, (2) certain lessor costs, and (3) recognition of variable payments for contracts with lease and non-lease components. In June 2020, the FASB issued No. ASU 2020-05, Coronavirus Disease 2019 (“COVID-19”) in response to the pandemic which has adversely affected the global economy and caused significant and widespread business and capital market disruptions. The FASB is committed to supporting and assisting stakeholders during this difficult time. The FASB issued ASU 2020-05 as a limited deferral of the effective dates of certain ASUs, including ASU 2016-02 (including amendments issued after the issuance of the original) to provide immediate, near-term relief for certain entities for whom these ASUs are either currently effective or imminently effective. The Company plans to defer the adoption of the amendments in ASU 2016-02 to the fiscal year beginning October 1, 2022. The Company is evaluating the significance and other effects of adoption on the consolidated financial statements and related disclosures. The Company is performing its accounting analysis of its branch building and other leases underlying contracts. At October 1, 2022, the Company recognized right of use operating leases valued at approximately $43,000. At June 30, 2023, the Company recognized right of use operating leases valued approximately $25,000. In June 2016, the FASB issued ASU 2016-13 to its guidance on “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than insignificant amount of credit deterioration since origination (“PCD assets”), should be determined in a similar manner to other financial assets measured on an amortized cost basis. However, upon initial recognition, the allowance for credit losses is added to the purchase price (“gross up approach”) to determine the initial amortized cost basis. The subsequent accounting for PCD financial assets is the same expected loss model described above. Further, the ASU made certain targeted amendments to the existing impairment model for available-for-sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. The amendments in this ASU are effective for the Company for the fiscal year beginning October 1, 2023. An entity will apply the amendments in this ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which aligns the implementation date for nonpublic entities’ annual financial statements with the implementation date for their interim financial statements and clarifies the scope of the guidance in the amendments in ASU 2016-13. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. ASU 2019-04 clarifies or addresses stakeholders’ specific issues about certain aspects of the amendments in Update 2016-13 related to measuring the allowance for loan losses under the new guidance. The effective dates and transition requirements for the amendments related to this Update are the same as the effective dates and transition requirements in Update 2016-13. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments Credit Losses clarifying certain amendments to various provisions of ASU No. 2016-13 relating to (1) purchased financial assets with credit deterioration, (2) financial assets secured by collateral maintenance agreements, (3) transition relief for troubled debt restructurings, and (4) disclosure relief when the practical expedient for accrued interest receivables is applied. In March 2022, the FASB issued ASU 2022-02, Codification Improvements to Topic 326, Financial Instruments Credit Losses, which eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhances the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The initial adjustment will not be reported in earnings and therefore will not have any material impact on our consolidated results of operations, but it is expected that it will have an impact on our consolidated financial position for periods ending after October 1, 2023, the date of adoption of this ASU. The Day one CECL adjustment is expected to be between $400,000 and $450,000 and will be reflected in our financial statements for periods ending after October 1, 2023. Under the current method, there is no reserve calculated for the acquired Citizens Bank of Cape Vincent loans with the net discount covering the calculated reserve amount. According to CECL guidance, prior discounts are not utilized to offset CECL reserves. We will continue to accrete all of the discount into income and the CECL reserve will be applied at adoption, with an adjustment coming from retained earnings. In December 2019, the FASB issued ASU 2019-12, Income Taxes Topic 740. This update simplifies and improves accounting for income taxes by eliminating certain exceptions to the general rules and clarifying or amending other current guidance. The scope of FASB ASC Subtopic 740-10, Income Taxes -Overall, has been amended to require that, if a franchise (or similar tax) is partially based on income, (1) deferred tax assets and liabilities should be recognized and accounted for pursuant to FASB ASC 740, as should the amount of current tax expense that is based on income, and (2) any incremental amount incurred should be recorded as a non-income-based tax. Note that under the amended guidance, the effect of potentially paying a non-income-based tax in future years need not be considered in evaluating the realizability of deferred tax assets. The amendments in this ASU are effective for the Company for the fiscal year beginning October 1, 2023. Early adoption is permitted, including adoption in an interim period. If early adoption is elected, all of the amended guidance must be adopted in the same period. If early adoption is initially applied in an interim period, any adjustments should be reflected as of the beginning of the annual period that includes that interim period. We do not anticipate that the adoption of this guidance will have a material impact on the consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments (1) apply to contract modifications that replace a reference rate affected by reference rate reform, (2) provide exceptions to existing guidance related to changes to the critical terms of a hedging relationship due to reference rate reform (3) provide optional expedients for fair value hedging relationships, cash flow hedging relationships, and net investment hedging relationships, and (4) provide a onetime election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The amendments for contract modifications can be elected to be applied as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020. The amendments for existing hedging relationships can be elected to be applied as of the beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform to clarify that all derivative instruments affected by changes to the interest rates used for discounting, margining or contract price alignment are in scope of Topic 848. ASU 2021-01 expands the scope of ASU 2020-04 by allowing an entity to apply the optional expedients, by stating that a change to the interest rate used for margining, discounting or contract price alignment for a derivative is not considered to be a change to the critical terms of the hedging relationship that requires dedesignation. The Company has signed an amended agreement with Federal Home Loan Bank of New York for the transition to SOFR which began July 1, 2023.

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
Earnings Per Common Share (Tables)	Jun. 30, 2023
Earnings Per Common Share
Schedule of computation of basic and diluted earnings per common share	The table below sets forth the computation of basic and diluted earnings per common share for the three and nine-month periods ending June 30, 2023 and 2022 (In thousands, except per share data) (unaudited). Three Months Ended Nine Months Ended June 30, June 30, Basic earnings per share: 2023 2022 2023 2022 Net income $ 232 $ 339 $ 232 $ 1,126 Weighted average common shares outstanding used to Calculate basic and diluted earnings per common share 2,031 2,031 2,031 2,031 Basic and diluted earnings per common share $ 0.11 $ 0.17 $ 0.11 $ 0.55

Comprehensive Income (Loss) (Ta

Comprehensive Income (Loss) (Tables)	9 Months Ended
Comprehensive Income (Loss) (Tables)	Jun. 30, 2023
Comprehensive Income (Loss)
Schedule of accumulated other comprehensive loss	June 30, September 30, 2023 2022 (In thousands) Pension and postretirement benefit costs, net of taxes of $106 at June 30, 2023 and $162 at September 30, 2022 $ (397) $ (611) Unrealized holding losses on available for sale securities, net of taxes of $(663) at June 30, 2023 and $(977) at September 30, 2022 (2,494) (3,677) $ (2,891) $ (4,288)

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
Investment Securities (Tables)	Jun. 30, 2023
Investment Securities
Schedule of amortized cost of debt securities and fair value	The amortized cost of debt securities and their approximate fair value at June 30, 2023 (unaudited) is represented in the table on the table below: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (unaudited) (In Thousands) AVAILABLE FOR SALE U.S. Government Treasuries $ 3,742 $ — $ (65) $ 3,677 U.S. Government Agencies 11,947 1 (173) 11,775 Mortgaged-Backed Securities 9,033 2 (432) 8,603 Municipal Securities 23,144 37 (2,518) 20,663 SBA Securities 2,514 13 (16) 2,511 $ 50,380 $ 53 $ (3,204) $ 47,229 HELD TO MATURITY Mortgage-Backed Securities $ 1 $ — $ — $ 1 The amortized cost of debt securities and their approximate fair value at September 30, 2022 is represented in the table below. Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (unaudited) (In Thousands) AVAILABLE FOR SALE U.S. Government Treasuries $ 4,163 $ — $ (4) $ 4,159 U.S. Government Agencies 10,335 — (12) 10,323 Mortgaged-Backed Securities 9,143 2 (705) 8,440 Municipal Securities 28,878 3 (3,937) 24,944 SBA Securities 1,780 — (1) 1,779 $ 54,299 $ 5 $ (4,659) $ 49,645 HELD TO MATURITY Mortgage-Backed Securities $ 1 $ — $ — $ 1
Schedule of amortized cost and fair value of debt securities, by contractual maturity	The amortized cost and fair value of debt securities, by contractual maturity, at June 30, 2023 (unaudited) is as shown below. Expected maturities will differ from contractual maturities call or prepay obligations with or without call or prepayment penalties. Debt Securities Debt Securities Available-for-Sale Held-to-Maturity Amortized Amortized Cost Fair Value Cost Fair Value (In Thousands) Due Within One Year $ 5,093 $ 5,063 $ — $ — Due After One Year Through Five Years 15,441 15,229 — — Due After Five Years Through Ten Years 3,957 3,829 — — Due After Ten Years 14,342 11,994 — — 38,833 36,115 — — Mortgage-Backed & SBA Securities 11,547 11,114 1 1 $ 50,380 $ 47,229 $ 1 $ 1 The amortized cost and fair value of debt securities, by contractual maturity, at September 30, 2022 is as shown below. Debt Securities Debt Securities Available-for-Sale Held-to-Maturity Amortized Amortized Cost Fair Value Cost Fair Value (In Thousands) Due Within One Year $ 4,065 $ 4,062 $ — $ — Due After One Year Through Five Years 16,390 16,374 — — Due After Five Years Through Ten Years 8,572 8,162 — — Due After Ten Years 14,349 10,828 — — 43,376 39,426 — — Mortgage-Backed & SBA Securities 10,923 10,219 1 1 $ 54,299 $ 49,645 $ 1 $ 1
Schedule of realized gains and losses from the sale of available-for-sale investments	Three Months Ended, Nine Months Ended, June 30, June 30, 2023 2022 2023 2022 (unaudited) (In Thousands) Proceeds $ — $ — $ 4,988 $ — Cost — — (5,649) — Net Realized Gains (Losses) $ — $ — $ (661) $ — Gross Realized Gains $ — $ — $ — $ — Gross Realized Losses — — (661) — Net Realized Gains (Losses) $ — $ — $ (661) $ —
Schedule of securities with gross unrealized losses	Information pertaining to securities with gross unrealized losses at June 30, 2023 (unaudited), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: Less than Twelve months Over Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Losses Fair Value Losses Fair Value Losses Fair Value (In Thousands) June 30, 2023 Unaudited Securities Available-for-Sale: US Treasuries & Agencies $ 238 $ 15,248 $ — $ — $ 238 $ 15,248 Mortgage-backed & SBA Securities 448 9,928 — — 448 9,928 Municipal Securities 82 6,822 2,436 8,591 2,518 15,413 $ 768 $ 31,998 $ 2,436 $ 8,591 $ 3,204 $ 40,589 Information pertaining to securities with gross unrealized losses at September 30, 2022 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are as follows: Less than Twelve months Over Twelve Months Total Gross Gross Gross Unrealized Unrealized Unrealized Losses Fair Value Losses Fair Value Losses Fair Value (In Thousands) September 30, 2022 Securities Available-for-Sale: US Treasuries & Agencies $ 16 $ 14,481 $ — $ — $ 16 $ 14,481 Mortgage-backed & SBA Securities 287 1,175 419 1,791 706 2,966 Municipal Securities 2,562 20,731 1,375 2,742 3,937 23,473 $ 2,865 $ 36,387 $ 1,794 $ 4,533 $ 4,659 $ 40,920

LOANS RECEIVABLE AND ALLOWANC_2

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)	9 Months Ended
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES (Tables)	Jun. 30, 2023
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES
Components of loans receivable	As of June 30, 2023 Originated Acquired Total Loans (unaudited) (In Thousands) Real Estate Mortgages Residential $ 74,364 $ 28,292 $ 102,656 Commercial 6,754 4,754 11,508 Construction 1,779 226 2,005 Home Equity 1,870 — 1,870 Other Loans: Commercial Non-Mortgage 1,300 766 2,066 Automobile 2,722 255 2,977 Passbook 120 263 383 Consumer 1,985 725 2,710 Total Loans 90,894 35,281 126,175 Net Deferred Loan Costs 523 — 523 Net Discounts on Acquired Loans — (1,038) (1,038) Allowance for Loan Losses (598) — (598) Loans, Net $ 90,819 $ 34,243 $ 125,062 Year Ended September 30, 2022 Originated Acquired Total Loans (In Thousands) Real Estate Mortgages: Residential $ 71,061 $ 28,302 $ 99,363 Loans Held For Sale — — — Commercial 7,450 4,876 12,326 Construction 2,866 1,891 4,757 Home Equity 2,464 — 2,464 Other Loans: Commercial Non-Mortgage 993 1,071 2,064 Automobile 1,947 329 2,276 Passbook 101 439 540 Consumer 1,496 1,074 2,570 Total Loans 88,378 37,982 126,360 Net Deferred Loan Costs 577 — 577 Net Discounts on Acquired Loans — (1,205) (1,205) Allowance for Loan Losses (621) — (621) Loans, Net $ 88,334 $ 36,777 $ 125,111
Schedule of outstanding principal balance and the related carrying amount of the Company's loans acquired	June 30, 2023 September 30, 2022 (unaudited) (in thousands) Acquired Credit Impaired Loans Outstanding Principal Balance $ — $ — Carrying Amount — — Acquired Non-Credit Impaired Loans Outstanding Principal Balance $ 35,281 $ 37,982 Carrying Amount 34,243 36,777 Total Acquired Loans Outstanding Principal Balance $ 35,281 $ 37,982 Carrying Amount 34,243 36,777
Schedule of allowance for loan losses and recorded investment in loans	Real Real Estate Commercial Commercial Estate Commercial Secured Unsecured Consumer Total (In Thousands) (Unaudited) Allowance for Credit Losses: Beginning Balance $ 548 $ 55 $ 4 $ 1 $ 13 $ 621 Charge-offs (106) — — (1) (12) (119) Recoveries 1 — — — 3 4 Transfer (18) — — 1 17 — Provisions 92 — — — — 92 Ending Balance $ 517 $ 55 $ 4 $ 1 $ 21 $ 598 Ending Balance: Individually Evaluated for Impairment $ — $ — $ — $ — $ — $ — Ending Balance: Collectively $ 517 $ 55 $ 4 $ 1 $ 21 $ 598 Loans Receivable: Ending Balance $ 106,531 $ 11,508 $ 2,055 $ 11 $ 6,070 $ 126,175 Less: Acquired Loans 28,518 4,754 766 — 1,243 35,281 Ending Balance: Individually Evaluated for Impairment $ — $ 302 $ — $ — $ — $ 302 Ending Balance: Collectively Evaluated for Impairment $ 78,013 $ 6,452 $ 1,289 $ 11 $ 4,827 $ 90,592 Real Estate Real Estate Commercial Commercial Residential Commercial Secured Unsecured Consumer Total (In Thousands) (Unaudited) Allowance for Credit Losses: Beginning Balance $ 598 $ 55 $ 4 $ 1 $ 17 $ 675 Charge-offs (106) — — (1) (3) (110) Recoveries 1 — — — 2 3 Transfer (6) — — 1 5 — Provisions 30 — — — — 30 Ending Balance $ 517 $ 55 $ 4 $ 1 $ 21 $ 598 Ending Balance: Individually Evaluated for Impairment $ — $ — $ — $ — $ — $ — Ending Balance: Collectively $ 517 $ 55 $ 4 $ 1 $ 21 $ 598 Real Estate Real Estate Commercial Commercial Residential Commercial Secured Unsecured Consumer Total (In Thousands) Beginning Balance $ 541 $ 64 $ 4 $ 1 $ 10 $ 620 Charge-offs (45) — — — (5) (50) Recoveries 5 — — — 4 9 Transfer (1) (4) — — 5 — Provisions 46 — — — — 46 Ending Balance $ 546 $ 60 $ 4 $ 1 $ 14 $ 625 Ending Balance: Individually Evaluated for Impairment $ 70 $ — $ — $ — $ — $ 70 Ending Balance: Collectively $ 476 $ 60 $ 4 $ 1 $ 14 $ 555 Real Estate Real Estate Commercial Commercial Residential Commercial Secured Unsecured Consumer Total (In Thousands) Beginning Balance $ 530 $ 60 $ 4 $ 1 $ 14 $ 609 Charge-offs — — — — (2) (2) Recoveries 2 — — — 1 3 Transfer (1) — — — 1 — Provisions 15 — — — — 15 Ending Balance $ 546 $ 60 $ 4 $ 1 $ 14 $ 625 Ending Balance: Individually Evaluated for Impairment $ 70 $ — $ — $ — $ — $ 70 Ending Balance: Collectively $ 476 $ 60 $ 4 $ 1 $ 14 $ 555 Real Estate Real Estate Commercial Commercial Residential Commercial Secured Unsecured Consumer Total (In Thousands) Loans Receivable: Ending Balance $ 106,584 $ 12,326 $ 2,039 $ 25 $ 5,386 $ 126,360 Less: Acquired Loans 30,193 4,876 1,071 — 1,842 37,982 Ending Balance: Individually Evaluated for Impairment $ 185 $ 278 $ — $ — $ — $ 463 Ending Balance: Collectively Evaluated for Impairment $ 76,206 $ 7,172 $ 968 $ 25 $ 3,544 $ 87,915
Schedule of Performing and nonperforming real estate loans	As of June 30, As of September 30, 2023 2022 (unaudited) (In Thousands) Performing $ 117,611 $ 118,293 Nonperforming 428 617 Total $ 118,039 $ 118,910
Schedule of credit risk profile for originated loans held in portfolio and loans held for sale, by internally assigned grade	Pass Special Mention Substandard Doubtful Total (unaudited) (In Thousands) Mortgage Loans on Real Estate Residential, One to Four Family $ 76,143 $ — $ — $ — $ 76,143 Home Equity 1,870 — — — 1,870 Commercial 6,452 — 302 — 6,754 Total Mortgage Loans on Real Estate 84,465 — 302 — 84,767 Commercial 1,300 — — — 1,300 Consumer 4,827 — — — 4,827 Total Loans $ 90,592 $ — $ 302 $ — $ 90,894 Pass Special Mention Substandard Doubtful Total (unaudited) (In Thousands) Mortgage Loans on Real Estate Residential, One to Four Family $ 28,518 $ — $ — $ — $ 28,518 Home Equity — — — — — Commercial 4,256 206 292 — 4,754 Total Mortgage Loans on Real Estate 32,774 206 292 — 33,272 Commercial 766 — — — 766 Consumer 1,243 — — — 1,243 Total Loans $ 34,783 $ 206 $ 292 $ — $ 35,281 Pass Special Mention Substandard Doubtful Total (In Thousands) Mortgage Loans on Real Estate Residential, One to Four Family $ 73,927 $ — $ — $ — $ 73,927 Home Equity 2,464 — — — 2,464 Commercial 7,172 — 278 — 7,450 Total Mortgage Loans on Real Estate 83,563 — 278 — 83,841 Commercial 993 — — — 993 Consumer 3,544 — — — 3,544 Total Loans $ 88,100 $ — $ 278 $ — $ 88,378 Pass Special Mention Substandard Doubtful Total (In Thousands) Mortgage Loans on Real Estate Residential, One to Four Family $ 30,193 $ — $ — $ — $ 30,193 Home Equity — — — — — Commercial 4,580 — 296 — 4,876 Total Mortgage Loans on Real Estate 34,773 — 296 — 35,069 Commercial 1,071 — — — 1,071 Consumer 1,842 — — — 1,842 Total Loans $ 37,686 $ — $ 296 $ — $ 37,982
Schedule of aging analysis of past due financing receivables by class of financing receivable	90 Days or Total 90 Days or 30 – 59 Days 60 – 89 Days Greater Total Financing Greater and Past Due Past Due Past Due Past Due Current Receivable Still accruing (unaudited) (In Thousands) Residential Mortgage $ 65 $ 443 $ 241 $ 749 $ 77,264 $ 78,013 $ — Commercial Mortgage — — 106 106 6,648 6,754 — Commercial — — — — 1,300 1,300 — Consumer 10 — — 10 4,817 4,827 — Total Loans $ 75 $ 443 $ 347 $ 865 $ 90,029 $ 90,894 $ — 90 Days or Total 90 Days or 30 – 59 Days 60 – 89 Days Greater Total Financing Greater and Past Due Past Due Past Due Past Due Current Receivable Still accruing (unaudited) (In Thousands) Residential Mortgage $ 33 $ — $ 62 $ 95 $ 28,423 $ 28,518 $ — Commercial Mortgage — — — — 4,754 4,754 — Commercial — — — — 766 766 — Consumer — — — — 1,243 1,243 — Total Loans $ 33 $ — $ 62 $ 95 $ 35,186 $ 35,281 $ — 90 Days or Greater Total Greater 30 – 59 Days 60 – 89 Days 90 Days or Total Financing and Still Past Due Past Due Past Due Past Due Current Receivable accruing (In Thousands) Residential Mortgage $ 359 $ 621 $ 547 $ 1,527 $ 74,864 $ 76,391 $ — Commercial Mortgage — — 40 40 7,410 7,450 — Commercial — 15 — 15 978 993 — Consumer — — 1 1 3,543 3,544 — Total Loans $ 359 $ 636 $ 588 $ 1,583 $ 86,795 $ 88,378 $ — 90 Days or Greater Total Greater 30 – 59 Days 60 – 89 Days 90 Days or Total Financing and Still Past Due Past Due Past Due Past Due Current Receivable accruing (In Thousands) Residential Mortgage $ 144 $ — $ — $ 144 $ 30,049 $ 30,193 $ — Commercial Mortgage — — — — 4,876 4,876 — Commercial — — — — 1,071 1,071 — Consumer 73 — 10 83 1,759 1,842 — Total Loans $ 217 $ — $ 10 $ 227 $ 37,755 $ 37,982 $ —

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	9 Months Ended
GOODWILL AND INTANGIBLE ASSETS (Tables)	Jun. 30, 2023
GOODWILL AND INTANGIBLE ASSETS
Schedule of Goodwill and Core Deposit Intangibles	Nine Months Ended June 30, Year ended September 30, 2023 2022 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount (In Thousands) Goodwill $ 3,956 $ — $ 3,956 $ 3,956 $ — $ 3,956 Core Deposit Intangible 2,542 347 2,195 2,542 — 2,542 $ 6,498 $ 347 $ 6,151 $ 6,498 $ — $ 6,498
Schedule of Estimated Aggregate Amortization Expense	Total Amortization Expense Fiscal Year Ended September 30, (in thousands) 2023 $ 462 2024 416 2025 370 2026 323 2027 277 $ 1,848

FINANCIAL INSTRUMENTS WITH OF_2

FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET CREDIT RISK (Tables)	9 Months Ended
	Jun. 30, 2023
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET CREDIT RISK
Summary of financial instrument commitments	Nine Months Ended June 30, For the Year Ended September 30 2023 2022 (unaudited) (in thousands) Commitments to Grant Loans $ 1,438 $ 1,759 Unfunded Commitments Under Lines of Credit 5,822 6,455

REGULATORY CAPITAL REQUIREMEN_2

REGULATORY CAPITAL REQUIREMENTS (Tables)	9 Months Ended
REGULATORY CAPITAL REQUIREMENTS (Tables)	Jun. 30, 2023
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS	Minimum to be Well Capitalized Under Prompt Minimum Capital Corrective Action Actual Requirement Provisions Amount ($) Ratio (%) Amount ($) Ratio (%) Amount ($) Ratio (%) (In Thousands) As of June 30, 2023 (unaudited) Total Capital (to Risk-Weighted Assets) $ 22,606 20.2 ≥ $ 8,968 ≥ 8.0 ≥ $ 11,210 ≥ 10.0 Tier 1 Capital (to Risk-Weighted Assets) 22,008 19.6 ≥ 6,726 ≥ 6.0 ≥ 8,968 ≥ 8.0 Tier 1 Common Equity (to Risk-Weighted Assets) 22,008 19.6 ≥ 5,045 ≥ 4.5 ≥ 7,287 ≥ 6.5 Tier 1 Leverage Ratio (to Adjusted Total Assets) 22,008 11.0 ≥ 7,986 ≥ 4.0 ≥ 9,983 ≥ 5.0 Capital Conservation Buffer on Tier 1 Common Equity 22,606 12.2 ≥ 7,847 ≥ 7.0 ≥ N/A ≥ N/A As of September 30, 2022 Total Capital (to Risk-Weighted Assets) $ 22,662 19.9 ≥ $ 9,110 ≥ 8.0 ≥ $ 11,387 ≥ 10.0 Tier 1 Capital (to Risk-Weighted Assets) 22,041 19.4 ≥ 6,832 ≥ 6.0 ≥ 9,110 ≥ 8.0 Tier 1 Common Equity (to Risk-Weighted Assets) 22,041 19.4 ≥ 5,124 ≥ 4.5 ≥ 7,402 ≥ 6.5 Tier 1 Leverage Ratio (to Adjusted Total Assets) 22,041 15.8 ≥ 5,582 ≥ 4.0 ≥ 6,978 ≥ 5.0 Capital Conservation Buffer on Tier 1 Common Equity 22,662 11.9 ≥ 7,971 ≥ 7.0 ≥ N/A ≥ N/A
Muni Bank
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS	Minimum to be Well Capitalized Under Prompt Minimum Capital Corrective Action Actual Requirement Provisions Amount ($) Ratio (%) Amount ($) Ratio (%) Amount ($) Ratio (%) (In Thousands) As of June 30, 2023 (unaudited) Total Capital (to Risk-Weighted Assets) $ 12,853 251.8 ≥ $ 408 ≥ 8.0 ≥ $ 511 ≥ 10.0 Tier 1 Capital (to Risk-Weighted Assets) 12,853 251.8 ≥ 306 ≥ 6.0 ≥ 408 ≥ 8.0 Tier 1 Common Equity (to Risk-Weighted Assets) 12,853 251.8 ≥ 230 ≥ 4.5 ≥ 332 ≥ 6.5 Tier 1 Leverage Ratio (to Adjusted Total Assets) 12,853 37.2 ≥ 1,381 ≥ 4.0 ≥ 1,726 ≥ 5.0 Capital Conservation Buffer on Tier 1 Common Equity 12,853 243.8 ≥ 357 ≥ 7.0 ≥ N/A ≥ N/A As of September 30, 2022 Total Capital (to Risk-Weighted Assets) $ 12,160 136.1 ≥ $ 715 ≥ 8.0 ≥ $ 894 ≥ 10.0 Tier 1 Capital (to Risk-Weighted Assets) 12,160 136.1 ≥ 536 ≥ 6.0 ≥ 715 ≥ 8.0 Tier 1 Common Equity (to Risk-Weighted Assets) 12,160 136.1 ≥ 402 ≥ 4.5 ≥ 581 ≥ 6.5 Tier 1 Leverage Ratio (to Adjusted Total Assets) 12,160 35.7 ≥ 1,364 ≥ 4.0 ≥ 1,705 ≥ 5.0 Capital Conservation Buffer on Tier 1 Common Equity 12,160 128.1 ≥ 625 ≥ 7.0 ≥ N/A ≥ N/A

INTEREST RATE DERIVATIVES (Tabl

INTEREST RATE DERIVATIVES (Tables)	9 Months Ended
INTEREST RATE DERIVATIVES (Tables)	Jun. 30, 2023
INTEREST RATE DERIVATIVES
Schedule of information about interest rate swap agreements	Weighted Estimated Average Rate Weighted Fair Value Notional Contract Average Rate (Liability) Amount Pay Rate Received Rate Asset (In Thousands) (In Thousands) June 30, 2023 (unaudited) Interest Rate Swaps on Mortgage Loans $ — 0.00 % 0.00 % $ — Interest Rate Swaps on FHLB Borrowings and Bank Deposits $ 5,500 2.04 % 5.35 % $ 268 September 30, 2022 Interest Rate Swaps on Mortgage Loans $ 11,000 2.41 % 2.99 % $ 756 Interest Rate Swaps on FHLB Borrowings and Bank Deposits $ 7,000 2.11 % 2.86 % $ 295
Summary of the fair value of outstanding derivatives and their presentation in the consolidated statements of financial condition	As of June 30, As of September 30, 2023 2022 (unaudited) (In Thousands) Fair Value Hedge – Interest Rate Swap Accrued Interest Receivable and Other Assets $ 268 $ 1,051
Summary of the maturity outstanding derivatives	June 30, September 30, 2023 2022 (unaudited) (in thousands) 2023 $ — $ 1,500 2024 — — 2025 4,500 4,500 2026 1,000 4,000 2027 — — 2028 — 6,000 2029 — 2,000 $ 5,500 $ 18,000

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Jun. 30, 2023
FAIR VALUE MEASUREMENTS
Summary of financial assets and liabilities reported on recurring basis	Quoted Prices in Active Markets for Identical Significant Other Significant Total Assets/Liabilities Observable Unobservable Fair Value (Level 1 ) Inputs (Level 2) Inputs (Level 3) (In Thousands) June 30, 2023 (unaudited) Available-for-Sale Securities U.S. Government Treasuries $ 3,677 $ — $ 3,677 $ — U.S. Government Agencies 11,775 — 11,775 — Mortgaged-Backed Securities 8,603 — 8,603 — Municipal Securities 20,663 — 20,663 — SBA Securities 2,511 — 2,511 — $ 47,229 $ — $ 47,229 $ — Interest Rate Swap Derivative $ 268 $ — $ 268 $ — September 30, 2022 Available-for-Sale Securities U.S. Government Treasuries $ 4,159 $ — $ 4,159 $ — U.S. Government Agencies 10,323 — 10,323 — Mortgaged-Backed Securities 8,440 — 8,440 — Municipal Securities 24,944 — 24,944 — SBA Securities 1,779 — 1,779 — $ 49,645 $ — $ 49,645 $ — Interest Rate Swap Derivative $ 1,051 $ — $ 1,051 $ —
Summary of financial assets and liabilities reported on Nonrecurring basis	Quoted Prices in Active Markets for Identical Significant Other Significant Total Assets/Liabilities Observable Unobservable Fair Value (Level 1 ) Inputs (Level 2) Inputs (Level 3) (In Thousands) June 30, 2023 (unaudited) Foreclosed Real Estate, Net $ 132 $ — $ — $ 132 September 30, 2022 Foreclosed Real Estate, Net $ 75 $ — $ — $ 75
Summary of basis valuation techniques	Valuation Techniques Unobservable Inputs Weighted Average Range Impaired Loans Appraisal of Collateral Appraisal Adjustments 25% - 25% (25%) (Sales Approach) Costs to Sell 6% - 10% (8%) Discounted Cash Flow Foreclosed Assets Appraisal of Collateral Appraisal Adjustments 25% - 25% (25%) (Sales Approach) Costs to Sell 6% - 10% (8%)
Summary of estimated fair values of financial instruments	June 30, 2023 Carrying Value Fair Value (unaudited) (In Thousands) Financial Assets Cash and due from banks $ 6,041 $ 6,041 Interest bearing deposits with banks 1,689 1,689 Time deposits in other financial institutions 728 728 Available for sale debt securities 47,229 47,229 Held to maturity debt securities 1 1 Acquired loans 34,243 34,243 Portfolio loans, net of deferred fees 90,819 75,701 Investment in restricted stock 1,393 1,393 Accrued interest receivable 571 571 Interest rate swap derivative 268 268 Financial Liabilities Deposits $ 160,619 $ 114,837 Accrued interest payable 10 10 September 30, 2022 Carrying Value Fair Value (In Thousands) Financial Assets Cash and due from banks $ 10,109 $ 10,109 Interest bearing deposits with banks 4,235 4,235 Time deposits in other financial institutions 718 718 Available for sale debt securities 49,645 49,645 Held to maturity debt securities 1 1 Acquired loans 36,777 36,777 Portfolio loans, net of deferred fees 88,334 71,900 Investment in restricted stock 895 895 Accrued interest receivable 591 591 Interest rate swap derivative 1,051 1,051 Financial Liabilities Deposits $ 183,951 $ 139,318 Accrued interest payable 1 1

LEASES (Tables)

LEASES (Tables)	9 Months Ended
LEASES (Tables)	Jun. 30, 2023
LEASES (UNAUDITED)
Summary of future minimum payments for operating leases	(unaudited) 2023 $ 6,000 2024 24,000 2025 24,000 2026 23,000 2027 13,000 $ 90,000
Summary of information of leases	Right to use assets $ 25,000 Lease liability $ 25,000 Weighted average remaining lease term: 2.40 years For the nine months ended June 30, 2023: Operating lease expense: $ 17,000 Short-term lease expense: 1,000 Total lease expense: $ 18,000 Cash paid for amounts included in measurement of lease liabilities: $ 18,000

PARENT COMPANY FINANCIAL INFO_2

PARENT COMPANY FINANCIAL INFORMATION (Tables)	9 Months Ended
PARENT COMPANY FINANCIAL INFORMATION (Tables)	Jun. 30, 2023
PARENT COMPANY FINANCIAL INFORMATION
Summary of condensed balance sheet	Gouverneur Bancorp, Inc. CONDENSED STATEMENTS OF FINANCIAL CONDITION PARENT COMPANY ONLY As of June 30, 2023 (unaudited) and September 30, 2022 June 30, 2023 Sept 30, 2022 (unaudited) (In Thousands, Except Share and Per Share Amounts) Assets Cash and Cash Equivalents: Cash and due from banks $ 8 $ 2 Interest bearing deposits with banks 52 105 Total Cash and Cash Equivalents 60 107 Accrued interest receivable and other assets 6 4 Investment in subsidiary 25,689 24,670 Total Assets $ 25,755 $ 24,781 Liabilities and Stockholders' Equity Accrued interest payable and other liabilities (499) (48) Total Liabilities (499) (48) Stockholders' Equity Preferred stock, par value $.01 per share; authorized 1,000,000 shares; none issued — — Common stock, par value $.01 per share; authorized, 9,000,000 shares at June 30, 2023, Sept. 30, 2022 issued 2,383,610 shares with 2,031,377 shares outstanding 24 24 Additional paid-in capital 5,035 5,035 Retained earnings 28,156 28,128 Treasury stock, at cost at June 30, 2023, 352,231 shares; Sept. 30, 2022; 352,233 shares (4,070) (4,070) Accumulated other comprehensive loss (2,891) (4,288) Total Stockholders' Equity 26,254 24,829 Total Liabilities and Stockholders' Equity $ 25,755 $ 24,781 See notes to consolidated financial statements
Summary of condensed income statement	Gouverneur Bancorp, Inc. CONDENSED STATEMENTS OF EARNINGS - PARENT COMPANY ONLY For the Three and Nine Months Ended June 30, 2023 and 2022 (unaudited) Three Months Ended June 30, Nine Months Ended June 30, 2023 2022 2023 2022 (unaudited) (In Thousands) Non-interest Income: Dividend Income $ — $ — $ 204 $ 72 Other 249 344 295 1,155 Total Non-interest Income 249 344 499 1,227 Non-interest Expenses: Professional fees 1 1 9 1 Acquisition fees — — — — Foreclosed assets, net — — — — Other 17 4 55 28 Total Non-interest Expenses 18 5 64 29 Income before Income Tax Expense 231 339 435 1,198 Income Tax Expense (Benefit) — — — — Net Income $ 231 $ 339 $ 435 $ 1,198 Basic and Diluted Earnings Per Share $ 0.11 $ 0.17 $ 0.21 $ 0.59 See notes to consolidated financial statements
Summary of condensed Cash flow	Gouverneur Bancorp, Inc. CONIDENSED STATEMENTS OF CASH FLOWS - PARENT ONLY Nine Months Ended June 30, 2023 2022 (unaudited) (In Thousands) Cash Flows from Operating Activities: Net income $ 435 $ 1,198 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity in undistributed net earnings of subsidiaries (295) (1,155) Dividends Declared 204 72 Dividend from Subsidiary (204) (72) Change in other Assets 468 84 Change in other Liabilities (451) (59) Net Cash (Used in) Provided by Operating Activities 157 68 Cash Flows from Financing Activities: Cash consideration paid for CBCV acquisition — — Cash dividends paid (204) (72) Net Cash Provided by Financing Activities (204) (72) Net Increase (Decrease) in Cash and Cash Equivalents (47) (4) Cash and Cash Equivalents - Beginning of Year 107 83 Cash and Cash Equivalents - End of Year $ 60 $ 79 Supplementary Cash Flows Information Income taxes paid — —

Basis of Presentation (Details)

Basis of Presentation (Details)	Sep. 16, 2022 USD ($) $ / shares
Municipal Bank
Basis of Presentation
Initial contribution	$ 2,500,000
Citizens Bank of Cape Vincent
Basis of Presentation
Cash entitled to pay per each share \| $ / shares	$ 1,056.11
Citizens Bank of Cape Vincent \| Municipal Bank
Basis of Presentation
Amount kept in municipal deposits	$ 24,187,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Principles of Consolidation (Details) $ in Millions	Jun. 30, 2023 USD ($)
Accounting Policies [Line Items]
Investment securities portfolio	$ 47.2
Municipal Bank
Accounting Policies [Line Items]
Investment securities portfolio	27.2
Deposits	$ 19

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Recently Issued Accounting Standards (Details) - USD ($)	Jun. 30, 2023	Oct. 01, 2022
Summary of Significant Accounting Policies
Right of use operating leases	$ 25,000
Cumulative Effect, Period of Adoption, Adjustment \| ASU 2016-02
Summary of Significant Accounting Policies
Right of use operating leases		$ 43,000
Cumulative Effect, Period of Adoption, Adjustment \| ASU 2022-02 \| Minimum
Summary of Significant Accounting Policies
CECL adjustment	400,000
Cumulative Effect, Period of Adoption, Adjustment \| ASU 2022-02 \| Maximum
Summary of Significant Accounting Policies
CECL adjustment	$ 450,000

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Basic earnings per share:
Net Income	$ 232	$ 339	$ 232	$ 1,126
Weighted average common shares outstanding (Basic)	2,031	2,031	2,031	2,031
Weighted average common shares outstanding (Diluted)	2,031	2,031	2,031	2,031
Basic earnings per common share	$ 0.11	$ 0.17	$ 0.11	$ 0.55
Diluted earnings per common share	$ 0.11	$ 0.17	$ 0.11	$ 0.55

Earnings Per Common Share - Add

Earnings Per Common Share - Additional Information (Details) - shares shares in Thousands	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Common Share
Dilutive Securities	0	0
Antidilutive Securities	0	0

Comprehensive Income (Loss) - C

Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2023	Sep. 30, 2022	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholder's Equity	$ 26,254	$ 24,829	$ 26,339	$ 25,658	$ 26,400	$ 27,402
AOCI Attributable to parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholder's Equity	(2,891)	(4,288)	$ (2,574)	$ (3,102)	$ (2,021)	$ (304)
Pension and postretirement benefit costs
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholder's Equity	(397)	(611)
Taxes	106	162
Unrealized holding losses on available for sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholder's Equity	(2,494)	(3,677)
Taxes	$ (663)	$ (977)

Investment Securities - Amortiz

Investment Securities - Amortized Cost of Debt Securities and Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
AVAILABLE FOR SALE
Amortized Cost	$ 50,380	$ 54,299
Gross Unrealized Gains	53	5
Gross Unrealized Losses	(3,204)	(4,659)
Fair Value	47,229	49,645
HELD TO MATURITY
Amortized Cost	1	1
Securities held-to-maturity, fair value	1	1
U.S. Government Treasuries
AVAILABLE FOR SALE
Amortized Cost	3,742	4,163
Gross Unrealized Losses	(65)	(4)
Fair Value	3,677	4,159
U.S. Government Agencies
AVAILABLE FOR SALE
Amortized Cost	11,947	10,335
Gross Unrealized Gains	1
Gross Unrealized Losses	(173)	(12)
Fair Value	11,775	10,323
Mortgaged-Backed Securities
AVAILABLE FOR SALE
Amortized Cost	9,033	9,143
Gross Unrealized Gains	2	2
Gross Unrealized Losses	(432)	(705)
Fair Value	8,603	8,440
HELD TO MATURITY
Amortized Cost	1	1
Securities held-to-maturity, fair value	1	1
Municipal Securities
AVAILABLE FOR SALE
Amortized Cost	23,144	28,878
Gross Unrealized Gains	37	3
Gross Unrealized Losses	(2,518)	(3,937)
Fair Value	20,663	24,944
SBA Securities
AVAILABLE FOR SALE
Amortized Cost	2,514	1,780
Gross Unrealized Gains	13
Gross Unrealized Losses	(16)	(1)
Fair Value	$ 2,511	$ 1,779

Investment Securities - Contrac

Investment Securities - Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Debt Securities Available-for-Sale, Amortized Cost
Due Within One Year	$ 5,093	$ 4,065
Due After One Year Through Five Years	15,441	16,390
Due After Five Years Through Ten Years	3,957	8,572
Due After Ten Years	14,342	14,349
Total	38,833	43,376
Mortgage-Backed & SBA Securities	11,547	10,923
Amortized Cost	50,380	54,299
Debt Securities Available-for-Sale, Fair Value
Due Within One Year	5,063	4,062
Due After One Year Through Five Years	15,229	16,374
Due After Five Years Through Ten Years	3,829	8,162
Due After Ten Years	11,994	10,828
Total	36,115	39,426
Mortgage-Backed & SBA Securities	11,114	10,219
Fair Value	47,229	49,645
Debt Securities Held-to-Maturity, Amortized Cost
Mortgage-Backed & SBA Securities	1	1
Amortized Cost	1	1
Debt Securities Held-to-Maturity, Fair Value
Mortgage-Backed & SBA Securities	1	1
Fair Value	$ 1	$ 1

Investment Securities - Realize

Investment Securities - Realized Gains and Losses (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2023 USD ($)
Investment Securities
Proceeds	$ 4,988
Cost	(5,649)
Net Realized Gains (Losses)	(661)
Gross Realized Losses	$ (661)

Investment Securities - Continu

Investment Securities - Continuous Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2023 USD ($) security	Sep. 30, 2022 USD ($) security
Investment Securities
Less than Twelve months, Gross Unrealized losses	$ 768	$ 2,865
Less than Twelve months, Fair value	31,998	36,387
Over Twelve months, Gross Unrealized losses	2,436	1,794
Over Twelve months, Fair value	8,591	4,533
Total, Gross Unrealized losses	3,204	4,659
Total, Fair value	$ 40,589	$ 40,920
Number of positions
Unrealized loss position of less than twelve months \| security	97	143
Unrealized loss position of 12 months or more \| security	56	25
Citizens Bank of Cape Vincent
Number of positions
Unrealized loss position of less than twelve months \| security		74
US Treasuries & Agencies
Investment Securities
Less than Twelve months, Gross Unrealized losses	$ 238	$ 16
Less than Twelve months, Fair value	15,248	14,481
Total, Gross Unrealized losses	238	16
Total, Fair value	15,248	14,481
Mortgage-Backed & SBA Securities
Investment Securities
Less than Twelve months, Gross Unrealized losses	448	287
Less than Twelve months, Fair value	9,928	1,175
Over Twelve months, Gross Unrealized losses		419
Over Twelve months, Fair value		1,791
Total, Gross Unrealized losses	448	706
Total, Fair value	9,928	2,966
Municipal Securities
Investment Securities
Less than Twelve months, Gross Unrealized losses	82	2,562
Less than Twelve months, Fair value	6,822	20,731
Over Twelve months, Gross Unrealized losses	2,436	1,375
Over Twelve months, Fair value	8,591	2,742
Total, Gross Unrealized losses	2,518	3,937
Total, Fair value	$ 15,413	$ 23,473

LOANS RECEIVABLE AND ALLOWANC_3

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Components of Loans receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021
Components of loans receivable
Total Loans	$ 126,175		$ 126,360
Net Deferred Loan Costs	523		577
Net Discounts on Acquired Loans	(1,038)		(1,205)
Allowance for Loan Losses	(598)	$ (675)	(621)	$ (625)	$ (609)	$ (620)
Loans, Net	125,062		125,111
Originated
Components of loans receivable
Total Loans	90,894		88,378
Net Deferred Loan Costs	523		577
Allowance for Loan Losses	(598)		(621)
Loans, Net	90,819		88,334
Acquired
Components of loans receivable
Total Loans	35,281		37,982
Net Discounts on Acquired Loans	(1,038)		(1,205)
Loans, Net	34,243		36,777
Residential
Components of loans receivable
Total Loans	102,656		99,363
Residential \| Originated
Components of loans receivable
Total Loans	74,364		71,061
Residential \| Acquired
Components of loans receivable
Total Loans	28,292		28,302
Commercial
Components of loans receivable
Total Loans	11,508		12,326
Allowance for Loan Losses	(55)	$ (55)	(55)	$ (60)	$ (60)	$ (64)
Commercial \| Originated
Components of loans receivable
Total Loans	6,754		7,450
Commercial \| Acquired
Components of loans receivable
Total Loans	4,754		4,876
Construction
Components of loans receivable
Total Loans	2,005		4,757
Construction \| Originated
Components of loans receivable
Total Loans	1,779		2,866
Construction \| Acquired
Components of loans receivable
Total Loans	226		1,891
Home Equity
Components of loans receivable
Total Loans	1,870		2,464
Home Equity \| Originated
Components of loans receivable
Total Loans	1,870		2,464
Commercial Non-Mortgage
Components of loans receivable
Total Loans	2,066		2,064
Commercial Non-Mortgage \| Originated
Components of loans receivable
Total Loans	1,300		993
Commercial Non-Mortgage \| Acquired
Components of loans receivable
Total Loans	766		1,071
Automobile
Components of loans receivable
Total Loans	2,977		2,276
Automobile \| Originated
Components of loans receivable
Total Loans	2,722		1,947
Automobile \| Acquired
Components of loans receivable
Total Loans	255		329
Passbook
Components of loans receivable
Total Loans	383		540
Passbook \| Originated
Components of loans receivable
Total Loans	120		101
Passbook \| Acquired
Components of loans receivable
Total Loans	263		439
Other consumer
Components of loans receivable
Total Loans	2,710		2,570
Other consumer \| Originated
Components of loans receivable
Total Loans	1,985		1,496
Other consumer \| Acquired
Components of loans receivable
Total Loans	$ 725		$ 1,074

LOANS RECEIVABLE AND ALLOWANC_4

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Outstanding principal balance and carrying amount (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Components of loans receivable
Balance	$ 126,175	$ 126,360
Carrying Amount	35,281	37,982
Acquired
Components of loans receivable
Balance	35,281	37,982
Acquired \| Citizens Bank of Cape Vincent
Components of loans receivable
Balance	35,281	37,982
Carrying Amount	34,243	36,777
Acquired Non-Credit Impaired Loans \| Citizens Bank of Cape Vincent
Components of loans receivable
Balance	35,281	37,982
Carrying Amount	$ 34,243	$ 36,777

LOANS RECEIVABLE AND ALLOWANC_5

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Narratives (Details)	9 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($) item LetterOfCredit segment loan	Sep. 30, 2022 USD ($) item loan
Components of loans receivable
Credit performance modified term	2 years
Total outstanding principal balance on serviced loans	$ 12,600,000	$ 13,300,000
Number of segments \| segment	2
Recorded investment balances	$ 0	$ 0
Number of new loans modified as TDR \| loan	0	0
Number of TDR's in payment default that were previously classified as a TDR \| item		0
Commitments to lend additional funds	$ 0	$ 0
Number of stand by letters of credit \| LetterOfCredit	4
Standby letters of credit	$ 176,000
Real Estate Mortgages
Components of loans receivable
Number of classes of Loans \| item	2
Commercial Loan
Components of loans receivable
Number of classes of Loans \| item	2

LOANS RECEIVABLE AND ALLOWANC_6

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022
Allowance for Credit Losses
Beginning Balance	$ 675	$ 609	$ 621	$ 620
Charge-offs	(110)	(2)	(119)	(50)
Recoveries	3	3	4	9
Provisions	30	15	92	46
Ending Balance	598	625	598	625
Ending Balance: Individually Evaluated for Impairment		70		70
Ending Balance: Collectively Evaluated for Impairment	598	555	598	555
Loans Receivable:
Balance	126,175		126,175		$ 126,360
Less: Acquired Loans	35,281		35,281		37,982
Ending Balance: Individually Evaluated for Impairment	302		302		463
Ending Balance: Collectively Evaluated for Impairment	90,592		90,592		87,915
Real Estate Mortgages
Allowance for Credit Losses
Beginning Balance	598	530	548	541
Charge-offs	(106)		(106)	(45)
Recoveries	1	2	1	5
Transfer	(6)	(1)	(18)	(1)
Provisions	30	15	92	46
Ending Balance	517	546	517	546
Ending Balance: Individually Evaluated for Impairment		70		70
Ending Balance: Collectively Evaluated for Impairment	517	476	517	476
Loans Receivable:
Balance	106,531		106,531		106,584
Less: Acquired Loans	28,518		28,518		30,193
Ending Balance: Individually Evaluated for Impairment					185
Ending Balance: Collectively Evaluated for Impairment	78,013		78,013		76,206
Commercial
Allowance for Credit Losses
Beginning Balance	55	60	55	64
Transfer				(4)
Ending Balance	55	60	55	60
Ending Balance: Collectively Evaluated for Impairment	55	60	55	60
Loans Receivable:
Balance	11,508		11,508		12,326
Less: Acquired Loans	4,754		4,754		4,876
Ending Balance: Individually Evaluated for Impairment	302		302		278
Ending Balance: Collectively Evaluated for Impairment	6,452		6,452		7,172
Commercial Secured
Allowance for Credit Losses
Beginning Balance	4	4	4	4
Ending Balance	4	4	4	4
Ending Balance: Collectively Evaluated for Impairment	4	4	4	4
Loans Receivable:
Balance	2,055		2,055		2,039
Less: Acquired Loans	766		766		1,071
Ending Balance: Collectively Evaluated for Impairment	1,289		1,289		968
Commercial Unsecured
Allowance for Credit Losses
Beginning Balance	1	1	1	1
Charge-offs	(1)		(1)
Transfer	1		1
Ending Balance	1	1	1	1
Ending Balance: Collectively Evaluated for Impairment	1	1	1	1
Loans Receivable:
Balance	11		11		25
Ending Balance: Collectively Evaluated for Impairment	11		11		25
Consumer
Allowance for Credit Losses
Beginning Balance	17	14	13	10
Charge-offs	(3)	(2)	(12)	(5)
Recoveries	2	1	3	4
Transfer	5	1	17	5
Ending Balance	21	14	21	14
Ending Balance: Collectively Evaluated for Impairment	21	$ 14	21	$ 14
Loans Receivable:
Balance	6,070		6,070		5,386
Less: Acquired Loans	1,243		1,243		1,842
Ending Balance: Collectively Evaluated for Impairment	$ 4,827		$ 4,827		$ 3,544

LOANS RECEIVABLE AND ALLOWANC_7

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Performing and nonperforming (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Components of loans receivable
Total Loans	$ 126,175	$ 126,360
Real Estate Mortgages
Components of loans receivable
Total Loans	106,531	106,584
Real Estate Mortgages \| Performing
Components of loans receivable
Total Loans	117,611	118,293
Real Estate Mortgages \| Non performing
Components of loans receivable
Total Loans	428	617
Real Estate Mortgages \| Total
Components of loans receivable
Total Loans	$ 118,039	$ 118,910

LOANS RECEIVABLE AND ALLOWANC_8

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Credit risk profile for acquired loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Components of loans receivable
Total Loans	$ 126,175	$ 126,360
Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	90,894	88,378
Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	35,281	37,982
Pass \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	90,592	88,100
Pass \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	34,783	37,686
Special Mention \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	206
Substandard \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	302	278
Substandard \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	292	296
Mortgage Loans on Real Estate
Components of loans receivable
Total Loans	106,531	106,584
Mortgage Loans on Real Estate \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	84,767	83,841
Mortgage Loans on Real Estate \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	33,272	35,069
Mortgage Loans on Real Estate \| Pass \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	84,465	83,563
Mortgage Loans on Real Estate \| Pass \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	32,774	34,773
Mortgage Loans on Real Estate \| Special Mention \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	206
Mortgage Loans on Real Estate \| Substandard \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	302	278
Mortgage Loans on Real Estate \| Substandard \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	292	296
Residential, One to Four Family \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	76,143	73,927
Residential, One to Four Family \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	28,518	30,193
Residential, One to Four Family \| Pass \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	76,143	73,927
Residential, One to Four Family \| Pass \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	28,518	30,193
Home Equity
Components of loans receivable
Total Loans	1,870	2,464
Home Equity \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	1,870	2,464
Home Equity \| Pass \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	1,870	2,464
Commercial
Components of loans receivable
Total Loans	11,508	12,326
Commercial \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	6,754	7,450
Commercial \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	4,754	4,876
Commercial \| Pass \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	6,452	7,172
Commercial \| Pass \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	4,256	4,580
Commercial \| Special Mention \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	206
Commercial \| Substandard \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	302	278
Commercial \| Substandard \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	292	296
Commercial Non-Mortgage
Components of loans receivable
Total Loans	2,066	2,064
Commercial Non-Mortgage \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	1,300	993
Commercial Non-Mortgage \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	766	1,071
Commercial Non-Mortgage \| Pass \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	1,300	993
Commercial Non-Mortgage \| Pass \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	766	1,071
Consumer
Components of loans receivable
Total Loans	6,070	5,386
Consumer \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	4,827	3,544
Consumer \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	1,243	1,842
Consumer \| Pass \| Originated Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	4,827	3,544
Consumer \| Pass \| Acquired Loans Held in Portfolio and Loans Held for Sale
Components of loans receivable
Total Loans	$ 1,243	$ 1,842

LOANS RECEIVABLE AND ALLOWANC_9

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - Aging Analysis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Past due financing receivables
Total Financing Receivable	$ 126,175	$ 126,360
Originated
Past due financing receivables
Total Past Due	865	1,583
Current	90,029	86,795
Total Financing Receivable	90,894	88,378
Originated \| 30 - 59 Days Past Due
Past due financing receivables
Total Past Due	75	359
Originated \| 60 - 89 Days Past Due
Past due financing receivables
Total Past Due	443	636
Originated \| 90 Days or Greater Past Due
Past due financing receivables
Total Past Due	347	588
Acquired
Past due financing receivables
Total Past Due	95	227
Current	35,186	37,755
Total Financing Receivable	35,281	37,982
Acquired \| 30 - 59 Days Past Due
Past due financing receivables
Total Past Due	33	217
Acquired \| 90 Days or Greater Past Due
Past due financing receivables
Total Past Due	62	10
Mortgage Loans on Real Estate
Past due financing receivables
Total Financing Receivable	106,531	106,584
Mortgage Loans on Real Estate \| Originated
Past due financing receivables
Total Past Due	749	1,527
Current	77,264	74,864
Total Financing Receivable	78,013	76,391
Mortgage Loans on Real Estate \| Originated \| 30 - 59 Days Past Due
Past due financing receivables
Total Past Due	65	359
Mortgage Loans on Real Estate \| Originated \| 60 - 89 Days Past Due
Past due financing receivables
Total Past Due	443	621
Mortgage Loans on Real Estate \| Originated \| 90 Days or Greater Past Due
Past due financing receivables
Total Past Due	241	547
Mortgage Loans on Real Estate \| Acquired
Past due financing receivables
Total Past Due	95	144
Current	28,423	30,049
Total Financing Receivable	28,518	30,193
Mortgage Loans on Real Estate \| Acquired \| 30 - 59 Days Past Due
Past due financing receivables
Total Past Due	33	144
Mortgage Loans on Real Estate \| Acquired \| 90 Days or Greater Past Due
Past due financing receivables
Total Past Due	62
Commercial
Past due financing receivables
Total Financing Receivable	11,508	12,326
Commercial \| Originated
Past due financing receivables
Total Past Due	106	40
Current	6,648	7,410
Total Financing Receivable	6,754	7,450
Commercial \| Originated \| 90 Days or Greater Past Due
Past due financing receivables
Total Past Due	106	40
Commercial \| Acquired
Past due financing receivables
Current	4,754	4,876
Total Financing Receivable	4,754	4,876
Commercial Non-Mortgage
Past due financing receivables
Total Financing Receivable	2,066	2,064
Commercial Non-Mortgage \| Originated
Past due financing receivables
Total Past Due		15
Current	1,300	978
Total Financing Receivable	1,300	993
Commercial Non-Mortgage \| Originated \| 60 - 89 Days Past Due
Past due financing receivables
Total Past Due		15
Commercial Non-Mortgage \| Acquired
Past due financing receivables
Current	766	1,071
Total Financing Receivable	766	1,071
Consumer
Past due financing receivables
Total Financing Receivable	6,070	5,386
Consumer \| Originated
Past due financing receivables
Total Past Due	10	1
Current	4,817	3,543
Total Financing Receivable	4,827	3,544
Consumer \| Originated \| 30 - 59 Days Past Due
Past due financing receivables
Total Past Due	10
Consumer \| Originated \| 90 Days or Greater Past Due
Past due financing receivables
Total Past Due		1
Consumer \| Acquired
Past due financing receivables
Total Past Due		83
Current	1,243	1,759
Total Financing Receivable	$ 1,243	1,842
Consumer \| Acquired \| 30 - 59 Days Past Due
Past due financing receivables
Total Past Due		73
Consumer \| Acquired \| 90 Days or Greater Past Due
Past due financing receivables
Total Past Due		$ 10

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2023	Sep. 30, 2022	Sep. 16, 2022
Goodwill and Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 3,956,000	$ 3,956,000
Intangible Assets	$ 2,195,000	2,542,000
Estimated Useful Life	10 years
Impairment of Goodwill		0
Amortization expense	$ 347,000	$ 0
Citizens Bank of Cape Vincent
Goodwill and Finite-Lived Intangible Assets [Line Items]
Goodwill			$ 4,000,000
Intangible Assets			$ 2,500,000

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill and Core Deposit Intangibles (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
GOODWILL AND INTANGIBLE ASSETS
Goodwill	$ 3,956	$ 3,956
Finite-Lived Intangible Assets
Core Deposit Intangibles, Gross	2,542	2,542
Accumulated Amortization	347
Core Deposit Intangibles, Net	2,195	2,542
Intangible Assets, Net (Including Goodwill)
Intangible Assets Gross Including Goodwill	6,498	6,498
Intangible Assets Net Including Goodwill	$ 6,151	$ 6,498

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Aggregate Amortization Expense (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity
2023	$ 462
2024	416
2025	370
2026	323
2027	277
Total	$ 1,848

FINANCIAL INSTRUMENTS WITH OF_3

FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET CREDIT RISK (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Commitments to Grant Loans
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET CREDIT RISK
Financial instrument commitments amount	$ 1,438	$ 1,759
Unfunded Commitments Under Lines of Credit
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET CREDIT RISK
Financial instrument commitments amount	$ 5,822	$ 6,455

REGULATORY CAPITAL REQUIREMEN_3

REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
REGULATORY CAPITAL REQUIREMENTS
Percentage of Capital Conservation Buffer	2.50%	2.50%
Total Capital (to Risk-Weighted Assets), Actual Amount	$ 22,606	$ 22,662
Total Capital (to Risk-Weighted Assets), Actual Ratio	0.202	0.199
Total Capital (to Risk-Weighted Assets), Minimum Capital Requirement, Amount	$ 8,968	$ 9,110
Total Capital (to Risk-Weighted Assets), Minimum Capital Requirement, Ratio	0.080	0.080
Total Capital (to Risk-Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 11,210	$ 11,387
Total Capital (to Risk-Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.100	0.100
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount	$ 22,008	$ 22,041
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio	0.196	0.194
Tier 1 Capital (to Risk-Weighted Assets), Minimum Capital Requirement, Amount	$ 6,726	$ 6,832
Tier 1 Capital (to Risk-Weighted Assets), Minimum Capital Requirement, Ratio	0.060	0.060
Tier 1 Capital (to Risk-Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 8,968	$ 9,110
Tier 1 Capital (to Risk-Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.080	0.080
Tier 1 Common Equity (to Risk-Weighted Assets), Actual Amount	$ 22,008	$ 22,041
Tier 1 Common Equity (to Risk-Weighted Assets), Actual Ratio	0.196	0.194
Tier 1 Common Equity (to Risk-Weighted Assets), Minimum Capital Requirement, Amount	$ 5,045	$ 5,124
Tier 1 Common Equity (to Risk-Weighted Assets), Minimum Capital Requirement, Ratio	0.045	0.045
Tier 1 Common Equity (to Risk-Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 7,287	$ 7,402
Tier 1 Common Equity (to Risk-Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.065	0.065
Tier 1 Leverage Ratio (to Adjusted Total Assets), Actual Amount	$ 22,008	$ 22,041
Tier 1 Leverage Ratio (to Adjusted Total Assets), Actual Ratio	0.110	0.158
Tier 1 Leverage Ratio (to Adjusted Total Assets), Minimum Capital Requirement, Amount	$ 7,986	$ 5,582
Tier 1 Leverage Ratio (to Adjusted Total Assets), Minimum Capital Requirement, Ratio	0.040	0.040
Tier 1 Leverage Ratio (to Adjusted Total Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 9,983	$ 6,978
Tier 1 Leverage Ratio (to Adjusted Total Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.050	0.050
Capital Conservation Buffer on Tier 1 Common Equity, Actual Amount	$ 22,606	$ 22,662
Capital Conservation Buffer on Tier 1 Common Equity, Actual Ratio	0.122	0.119
Capital Conservation Buffer on Tier 1 Common Equity, Minimum Capital Requirement, Amount	$ 7,847	$ 7,971
Capital Conservation Buffer on Tier 1 Common Equity, Minimum Capital Requirement, Ratio	0.070	0.070
Muni Bank
REGULATORY CAPITAL REQUIREMENTS
Total Capital (to Risk-Weighted Assets), Actual Amount	$ 12,853	$ 12,160
Total Capital (to Risk-Weighted Assets), Actual Ratio	2.518	1.361
Total Capital (to Risk-Weighted Assets), Minimum Capital Requirement, Amount	$ 408	$ 715
Total Capital (to Risk-Weighted Assets), Minimum Capital Requirement, Ratio	0.080	0.080
Total Capital (to Risk-Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 511	$ 894
Total Capital (to Risk-Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.100	0.100
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount	$ 12,853	$ 12,160
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio	2.518	1.361
Tier 1 Capital (to Risk-Weighted Assets), Minimum Capital Requirement, Amount	$ 306	$ 536
Tier 1 Capital (to Risk-Weighted Assets), Minimum Capital Requirement, Ratio	0.060	0.060
Tier 1 Capital (to Risk-Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 408	$ 715
Tier 1 Capital (to Risk-Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.080	0.080
Tier 1 Common Equity (to Risk-Weighted Assets), Actual Amount	$ 12,853	$ 12,160
Tier 1 Common Equity (to Risk-Weighted Assets), Actual Ratio	2.518	1.361
Tier 1 Common Equity (to Risk-Weighted Assets), Minimum Capital Requirement, Amount	$ 230	$ 402
Tier 1 Common Equity (to Risk-Weighted Assets), Minimum Capital Requirement, Ratio	0.045	0.045
Tier 1 Common Equity (to Risk-Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 332	$ 581
Tier 1 Common Equity (to Risk-Weighted Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.065	0.065
Tier 1 Leverage Ratio (to Adjusted Total Assets), Actual Amount	$ 12,853	$ 12,160
Tier 1 Leverage Ratio (to Adjusted Total Assets), Actual Ratio	0.372	0.357
Tier 1 Leverage Ratio (to Adjusted Total Assets), Minimum Capital Requirement, Amount	$ 1,381	$ 1,364
Tier 1 Leverage Ratio (to Adjusted Total Assets), Minimum Capital Requirement, Ratio	0.040	0.040
Tier 1 Leverage Ratio (to Adjusted Total Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 1,726	$ 1,705
Tier 1 Leverage Ratio (to Adjusted Total Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.050	0.050
Capital Conservation Buffer on Tier 1 Common Equity, Actual Amount	$ 12,853	$ 12,160
Capital Conservation Buffer on Tier 1 Common Equity, Actual Ratio	2.438	1.281
Capital Conservation Buffer on Tier 1 Common Equity, Minimum Capital Requirement, Amount	$ 357	$ 625
Capital Conservation Buffer on Tier 1 Common Equity, Minimum Capital Requirement, Ratio	0.070	0.070

RETAINED EARNINGS (Details)

RETAINED EARNINGS (Details) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended
RETAINED EARNINGS (Details) - USD ($)	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022
RETAINED EARNINGS
Dividend declared, per share amount	$ 0.10	$ 0.10	$ 0.10	$ 0.06	$ 0.06
Dividends per cash paid		$ 0.10			$ 0.06
Dividends declared amount	$ 204,000		$ 204,000	$ 72,000	$ 115,000
Cambray
RETAINED EARNINGS
Dividends payable waived			$ 6,384,000

INTEREST RATE DERIVATIVES (Deta

INTEREST RATE DERIVATIVES (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
INTEREST RATE DERIVATIVES (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022
INTEREST RATE DERIVATIVES
Amounts recognized in earnings as noninterest gain (loss)	$ 40,000	$ 434,000	$ (783,000)	$ 1,527,000
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Noninterest Expense, Noninterest Income		Noninterest Expense, Noninterest Income

INTEREST RATE DERIVATIVES - Int

INTEREST RATE DERIVATIVES - Interest Rate Swap Agreements (Details) - Interest Rate Swap - Designated as hedging Instrument - Fair Value Hedge - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2023	Sep. 30, 2022
Mortgage Loans
Derivative [Line Items]
Notional Amount		$ 11,000
Weighted Average Rate Contract Pay Rate	0%	2.41%
Weighted Average Rate Received Rate	0%	2.99%
Estimated Fair Value (Liability) Asset		$ 756
FHLB Borrowings and Bank Deposits
Derivative [Line Items]
Notional Amount	$ 5,500	$ 7,000
Weighted Average Rate Contract Pay Rate	2.04%	2.11%
Weighted Average Rate Received Rate	5.35%	2.86%
Estimated Fair Value (Liability) Asset	$ 268	$ 295

INTEREST RATE DERIVATIVES - Fai

INTEREST RATE DERIVATIVES - Fair Value of Outstanding Derivatives (Details) - Interest Rate Swap - Designated as hedging Instrument - Fair Value Hedge - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Derivative [Line Items]
Accrued Interest Receivable and Other Assets	$ 268	$ 1,051
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Interest Receivable and Other Assets	Interest Receivable and Other Assets

INTEREST RATE DERIVATIVES - Mat

INTEREST RATE DERIVATIVES - Maturity of Outstanding Derivatives (Details) - Interest Rate Swap - Designated as hedging Instrument - Fair Value Hedge - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Derivative [Line Items]
2023/2024		$ 1,500
2024/2025	$ 4,500
2025/2026	1,000	4,500
2026/2027		4,000
2028/2029		6,000
2029		2,000
Total	$ 5,500	$ 18,000

FAIR VALUE MEASUREMENTS - Finan

FAIR VALUE MEASUREMENTS - Financial assets and liabilities on recurring basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 47,229	$ 49,645
U.S. Government Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	3,677	4,159
U.S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	11,775	10,323
Mortgaged-Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	8,603	8,440
Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	20,663	24,944
SBA Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	2,511	1,779
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	47,229	49,645
Interest Rate Swap Derivative	268	1,051
Recurring \| U.S. Government Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	3,677	4,159
Recurring \| U.S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	11,775	10,323
Recurring \| Mortgaged-Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	8,603	8,440
Recurring \| Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	20,663	24,944
Recurring \| SBA Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	2,511	1,779
Recurring \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	47,229	49,645
Interest Rate Swap Derivative	268	1,051
Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. Government Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	3,677	4,159
Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	11,775	10,323
Recurring \| Significant Other Observable Inputs (Level 2) \| Mortgaged-Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	8,603	8,440
Recurring \| Significant Other Observable Inputs (Level 2) \| Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	20,663	24,944
Recurring \| Significant Other Observable Inputs (Level 2) \| SBA Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 2,511	$ 1,779

FAIR VALUE MEASUREMENTS - Fin_2

FAIR VALUE MEASUREMENTS - Financial assets and liabilities on nonrecurring basis (Details) - Nonrecurring - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreclosed Real Estate, Net	$ 132	$ 75
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreclosed Real Estate, Net	$ 132	$ 75

FAIR VALUE MEASUREMENTS - Quant

FAIR VALUE MEASUREMENTS - Quantitative Information (Details) - Nonrecurring - Significant Unobservable Inputs (Level 3)	Jun. 30, 2023	Sep. 30, 2022
Appraisal of Collateral \| Appraisal Adjustments \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	0.25	0.25
Forceclosed assets	0.25	0.25
Appraisal of Collateral \| Appraisal Adjustments \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	0.25	0.25
Forceclosed assets	0.25	0.25
Appraisal of Collateral \| Appraisal Adjustments \| Weighted average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	0.25	0.25
Forceclosed assets	0.25	0.25
Sales approach \| Costs to Sell \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	0.06	0.06
Forceclosed assets	0.06	0.06
Sales approach \| Costs to Sell \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	0.10	0.10
Forceclosed assets	0.10	0.10
Sales approach \| Costs to Sell \| Weighted average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	0.08	0.08
Forceclosed assets	0.08	0.08

FAIR VALUE MEASUREMENTS - Estim

FAIR VALUE MEASUREMENTS - Estimated fair values of financial instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	$ 6,041	$ 10,109
Interest bearing deposits with banks	1,689	4,235
Time deposits in other financial institutions	20,797	20,371
Securities available-for-sale	47,229	49,645
Held to maturity debt securities	1	1
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	6,041	10,109
Interest bearing deposits with banks	1,689	4,235
Time deposits in other financial institutions	728	718
Securities available-for-sale	47,229	49,645
Held to maturity debt securities	1	1
Acquired loans	34,243	36,777
Portfolio loans, net of deferred fees	90,819	88,334
Investment in restricted stock	1,393	895
Accrued interest receivable	571	591
Interest rate swap derivative	268	1,051
Financial Liabilities
Deposits	160,619	183,951
Accrued interest payable	10	1
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	6,041	10,109
Interest bearing deposits with banks	1,689	4,235
Time deposits in other financial institutions	728	718
Securities available-for-sale	47,229	49,645
Held to maturity debt securities	1	1
Acquired loans	34,243	36,777
Portfolio loans, net of deferred fees	75,701	71,900
Investment in restricted stock	1,393	895
Accrued interest receivable	571	591
Interest rate swap derivative	268	1,051
Financial Liabilities
Deposits	114,837	139,318
Accrued interest payable	$ 10	$ 1

LEASES - Narrative (Details)

LEASES - Narrative (Details) - USD ($)	9 Months Ended	12 Months Ended
LEASES - Narrative (Details) - USD ($)	Jun. 30, 2023	Sep. 30, 2022
Lessee, Lease, Description [Line Items]
Option to extend	true
Net lease cost	$ 18,000	$ 0
Branch office
Lessee, Lease, Description [Line Items]
Renewal term (in years)	3 years
Lease expense	$ 10,000
Equipment
Lessee, Lease, Description [Line Items]
Lease expense	$ 8,000

LEASES - Future minimum payment

LEASES - Future minimum payments for operating leases (Details)	Jun. 30, 2023 USD ($)
LEASES (UNAUDITED)
2023	$ 6,000
2024	24,000
2025	24,000
2026	23,000
2027	13,000
Total	$ 90,000

LEASES - Information about the

LEASES - Information about the Company's leases (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2023	Sep. 30, 2022
LEASES (UNAUDITED)
Right to use assets	$ 25,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Interest Receivable and Other Assets
Lease liability	$ 25,000
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities and Other Liabilities
Weighted average remaining lease term	2 years 4 months 24 days
Operating lease expense:	$ 17,000
Short-term lease expense:	1,000
Total lease expense:	18,000	$ 0
Cash paid for amounts included in measurement of lease liabilities	$ 18,000

PARENT COMPANY FINANCIAL INFO_3

PARENT COMPANY FINANCIAL INFORMATION - Financial Condition (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021
Assets:
Cash and due from banks	$ 6,041		$ 10,109
Interest-bearing deposits in bank	1,689		4,235
Total cash and cash equivalents	7,730		14,344
Accrued interest receivable and other assets	4,631		5,736
Total assets	203,141		213,019
Liabilities:
Accrued interest payable and other liabilities	3,202		3,806
Total liabilities	176,887		188,190
Shareholders' Equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized; none issued
Common stock, par value $.01 per share; authorized, 9,000,000 shares at June 30, 2023, Sept. 30, 2022 issued 2,383,610 shares with 2,031,377 shares outstanding	24		24
Additional paid-in capital	5,035		5,035
Retained earnings	28,156		28,128
Treasury stock, at cost at June 30, 2023, 352,231 shares; Sept. 30, 2022; 352,233 shares	(4,070)		(4,070)
Accumulated other comprehensive loss	(2,891)		(4,288)
Total shareholders' equity	26,254	$ 26,339	24,829	$ 25,658	$ 26,400	$ 27,402
Total liabilities and shareholders' equity	203,141		213,019
Parent Company [Member]
Assets:
Cash and due from banks	8		2
Interest-bearing deposits in bank	52		105
Total cash and cash equivalents	60		107
Accrued interest receivable and other assets	6		4
Investment in subsidiary	25,689		24,670
Total assets	25,755		24,781
Liabilities:
Accrued interest payable and other liabilities	(499)		(48)
Total liabilities	(499)		(48)
Shareholders' Equity:
Common stock, par value $.01 per share; authorized, 9,000,000 shares at June 30, 2023, Sept. 30, 2022 issued 2,383,610 shares with 2,031,377 shares outstanding	24		24
Additional paid-in capital	5,035		5,035
Retained earnings	28,156		28,128
Treasury stock, at cost at June 30, 2023, 352,231 shares; Sept. 30, 2022; 352,233 shares	(4,070)		(4,070)
Accumulated other comprehensive loss	(2,891)		(4,288)
Total shareholders' equity	26,254		24,829
Total liabilities and shareholders' equity	$ 25,755		$ 24,781

PARENT COMPANY FINANCIAL INFO_4

PARENT COMPANY FINANCIAL INFORMATION - Financial Condition Parenthetical (Details) - $ / shares	Jun. 30, 2023	Sep. 30, 2022
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	9,000,000	9,000,000
Common stock, shares issued	2,031,377	2,031,377
Treasury stock, shares	352,231	352,233
Parent Company [Member]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	9,000,000	9,000,000
Common stock, shares issued	2,383,610	2,383,610
Common stock, shares outstanding	2,031,377	2,031,377
Treasury stock, shares	352,231	352,233

PARENT COMPANY FINANCIAL INFO_5

PARENT COMPANY FINANCIAL INFORMATION - Earnings (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Non-interest income:
Other non-interest income	$ 103	$ 54	$ 260	$ 174
Total non-interest income (loss)	275	575	(96)	2,025
Non-interest expenses:
Professional fees	131	226	357	652
Foreclosed assets, net	(14)	(11)	18	2
Other non-interest expense	236	152	677	451
Total non-interest expenses	1,847	1,182	5,455	3,671
Income before income tax expense	244	401	136	1,333
Income tax (benefit) expense	12	62	(96)	207
Net income	$ 232	$ 339	$ 232	$ 1,126
Earnings per common share - basic	$ 0.11	$ 0.17	$ 0.11	$ 0.55
Earnings per common share - diluted	$ 0.11	$ 0.17	$ 0.11	$ 0.55
Parent Company [Member]
Non-interest income:
Dividend Income			$ 204	$ 72
Other non-interest income	$ 249	$ 344	295	1,155
Total non-interest income (loss)	249	344	499	1,227
Non-interest expenses:
Professional fees	1	1	9	1
Other non-interest expense	17	4	55	28
Total non-interest expenses	18	5	64	29
Income before income tax expense	231	339	435	1,198
Net income	$ 231	$ 339	$ 435	$ 1,198
Earnings per common share - basic	$ 0.11	$ 0.17	$ 0.21	$ 0.59
Earnings per common share - diluted	$ 0.11	$ 0.17	$ 0.21	$ 0.59

PARENT COMPANY FINANCIAL INFO_6

PARENT COMPANY FINANCIAL INFORMATION - Cash Flow (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net Income	$ 232	$ 1,126
Adjustments to reconcile net income to net cash provided by operating activities:
Net cash (used in) provided by operating activities	1,340	(1,943)
Cash flows from financing activities:
Cash dividends paid to common stock shareholders	(204)	(72)
Net cash provided by (used in) financing activities	(10,903)	403
Net decrease in cash and cash equivalents	(6,614)	(2,789)
Cash and cash equivalents - Beginning of Year	14,344	11,049
Cash and cash equivalents - End of Year	7,730	8,260
Parent Company [Member]
Cash flows from operating activities:
Net Income	435	1,198
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed net earnings of subsidiaries	(295)	(1,155)
Dividends Declared	204	72
Dividend from Subsidiary	(204)	(72)
Change in other Assets	468	84
Change in other Liabilities	(451)	(59)
Net cash (used in) provided by operating activities	157	68
Cash flows from financing activities:
Cash dividends paid to common stock shareholders	(204)	(72)
Net cash provided by (used in) financing activities	(204)	(72)
Net decrease in cash and cash equivalents	(47)	(4)
Cash and cash equivalents - Beginning of Year	107	83
Cash and cash equivalents - End of Year	$ 60	$ 79