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Fair Value Measurements
 3 Months Ended
Sep. 30, 2025
Fair Value Measurements  
Fair Value Measurements

​

Note 12:  Fair Value Measurements

ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1 Quoted prices in active markets for identical assets or liabilities

Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active 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 assets or liabilities

Level 3 Unobservable inputs supported by little or no market activity that are significant to the fair value of the assets or liabilities

Recurring Measurements. The following table presents the fair value measurements recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2025, and June 30, 2025:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at September 30, 2025, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

Active Markets for

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of state and political subdivisions

​

$

24,884

​

$

—

​

$

24,884

​

$

—

Corporate obligations

​

​

29,365

​

​

—

​

​

29,365

​

​

—

Asset backed securities

​

​

38,761

​

​

—

​

​

38,761

​

​

—

Other securities

​

 

3,695

​

 

—

​

 

3,695

​

 

—

MBS and CMOs

​

 

357,150

​

 

—

​

 

357,150

​

 

—

Mortgage servicing rights

​

​

2,299

​

​

—

​

​

—

​

​

2,299

Derivative financial instruments

​

​

1,214

​

​

—

​

​

1,214

​

​

—

Liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Derivative financial instruments

​

​

1,168

​

​

—

​

​

1,168

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2025, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

​

Active Markets for 

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Obligations of state and political subdivisions

​

$

24,263

​

$

—

​

$

24,263

​

$

—

Corporate obligations

​

​

30,642

​

​

—

​

​

30,642

​

​

—

Asset backed securities

​

​

42,481

​

​

—

​

​

42,481

​

​

—

Other securities

​

 

3,964

​

 

—

​

 

3,964

​

 

—

MBS and CMOs

​

​

359,494

​

​

—

​

​

359,494

​

​

—

Mortgage servicing rights

​

​

2,297

​

​

​

​

​

​

​

​

2,297

Derivative financial instruments

​

​

912

​

​

—

​

​

912

​

​

—

Liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Derivative financial instruments

​

 

877

​

 

—

​

 

877

​

 

—

​

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the three-month period ended September 30, 2025. There were no transfers between levels of the fair value hierarchy during the period ended September 30 2025.

Available-for-sale Securities. When quoted market prices are available in an active market, securities are classified within Level 1. If quoted market prices are not available, then fair values are estimated using pricing models, or quoted prices of securities with similar characteristics. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.  In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

Derivative financial instruments. The Company’s derivative financial instruments consist of interest rate swaps on loans accounted for as fair value hedges. The fair value of interest rate swaps was determined by discounting the expected cash flows of the interest rate swaps. This valuation reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs. The Company’s derivative financial instruments also include interest swap contracts which are not designated as hedging instruments, executed with customers to assist them in managing their interest rate risk while executing offsetting interest rate swaps with an upstream counterparty. The inputs used to value the Company’s interest rate swaps fall within Level 2 of the fair value hierarchy and, as a result, the interest rate swaps were categorized as Level 2 within the fair value hierarchy. See information regarding the Company’s derivative financial agreements in Note 13: Derivative Financial Instruments of these Notes to Consolidated Financial Statements.

Mortgage servicing rights. The Company records MSR at fair value on a recurring basis with subsequent remeasurement of MSR based on change in fair value. An estimate of the fair value of the Company’s MSR is determined by utilizing assumptions about factors such as mortgage interest rates, discount rates, mortgage loan prepayment speeds, market trends and industry demand. All of the Company’s MSR are classified as Level 3.

The following table summarizes the change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the three-month periods ended September 30, 2025, and September 30, 2024:

​

​

​

​

​

​

​

​

​

​

September 30, 

(dollars in thousands)

    

2025

    

2024

MSR, beginning

 

$

2,297

​

$

2,448

Originations

 

 

50

​

 

34

Amortization

 

 

(48)

​

 

(63)

Change in fair value

 

 

—

​

 

—

MSR, ending

 

$

2,299

​

$

2,419

​

Nonrecurring Measurements. The following tables present the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fell at September 30, 2025, and June 30, 2025:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at September 30, 2025, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

​

Active Markets for

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Foreclosed and repossessed assets held for sale

​

$

1,006

​

$

—

​

$

—

​

$

1,006

Collateral dependent loans

​

​

20,349

​

​

—

​

​

—

​

​

20,349

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at June 30, 2025, Using:

​

​

​

​

​

Quoted Prices in

​

​

​

​

​

​

​

​

​

​

​

Active Markets for

​

Significant Other

​

Significant

​

​

​

​

​

Identical Assets

​

Observable Inputs

​

Unobservable Inputs

(dollars in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Foreclosed and repossessed assets held for sale

​

$

625

​

$

—

​

$

—

​

$

625

Collateral dependent loans

​

​

24,368

​

​

—

​

​

—

​

​

24,368

​

The following table presents losses recognized on assets measured on a non-recurring basis for the three-month periods ended September 30, 2025, and 2024:

​

​

​

​

​

​

​

​

​

​

    

For the three months ended

​

(dollars in thousands)

​

September 30, 2025

​

September 30, 2024

​

Foreclosed and repossessed assets held for sale

​

$

159

​

$

23

​

Total losses on assets measured on a non-recurring basis

​

$

159

​

$

23

​

​

The following is a description of valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below.

Foreclosed and Repossessed Assets Held for Sale. Foreclosed and repossessed assets held for sale are valued at the time the loan is foreclosed upon or collateral is repossessed and the asset is transferred to foreclosed or repossessed assets held for sale. The value of the asset is based on third party or internal appraisals, less estimated costs to sell and appropriate discounts, if any. The appraisals are generally discounted based on current and expected market conditions that may impact the sale or value of the asset and management’s knowledge and experience with similar assets. Such discounts typically may be significant and result in a Level 3 classification of the inputs for determining fair value of these assets. Foreclosed and repossessed assets held for sale are continually evaluated for additional impairment and are adjusted accordingly if impairment is identified.

Collateral-Dependent Loans. The Company records collateral-dependent loans as Nonrecurring Level 3. If a loan’s fair value as estimated by the Company is less than its carrying value, the Company either records a charge-off of the portion of the loan that exceeds the fair value or establishes a reserve within the ACL specific to the loan.

Unobservable (Level 3) Inputs. The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at September 30, 2025, and June 30, 2025.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

    

​

    

Range

    

​

 

​

​

Fair value at

​

Valuation

​

Unobservable

​

of

​

Weighted-average

 

(dollars in thousands)

​

September 30, 2025

​

technique

​

inputs

​

inputs applied

​

inputs applied

 

Nonrecurring Measurements

 

​

  

 

  

 

  

 

  

 

  

​

Foreclosed and repossessed assets

​

$

1,006

 

Third party appraisal

 

Marketability discount

 

8.0 -8.2

%  

8.0

%

Collateral dependent loans

​

​

20,349

 

Collateral value

 

Marketability discount

 

14.9 -100.0

%  

22.1

%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

​

    

​

    

Range

    

​

 

​

​

Fair value at

​

Valuation

​

Unobservable

​

of

​

Weighted-average

 

(dollars in thousands)

​

June 30, 2025

​

technique

​

inputs

​

inputs applied

​

inputs applied

 

Nonrecurring Measurements

 

​

  

 

  

 

  

 

  

 

  

​

Foreclosed and repossessed assets

​

$

625

 

Third party appraisal

 

Marketability discount

 

25.6 -25.6

%  

25.6

%

Collateral dependent loans

​

​

24,368

 

Collateral value

 

Marketability discount

 

4.3 -100.0

%  

23.9

%

​

​

Fair Value of Financial Instruments. The following table presents estimated fair values of the Company’s financial instruments not reported at fair value and the level within the fair value hierarchy in which the fair value measurements fell at September 30, 2025, and June 30, 2025.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

September 30, 2025

​

​

​

​

​

Quoted Prices

​

​

​

​

​

​

​

​

​

​

​

in Active

​

​

​

​

Significant

​

​

​

​

​

Markets for

​

Significant Other

​

Unobservable

​

​

Carrying

​

Identical Assets

​

Observable Inputs

​

Inputs

(dollars in thousands)

    

Amount

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial assets

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

124,111

​

$

124,111

​

$

—

​

$

—

Interest-bearing time deposits

​

 

247

​

 

—

​

 

247

​

 

—

Stock in FHLB

​

 

9,347

​

 

—

​

 

9,347

​

 

—

Stock in Federal Reserve Bank of St. Louis

​

 

9,142

​

 

—

​

 

9,142

​

 

—

Loans held for sale

​

​

277

​

 

—

​

 

277

​

 

—

Loans receivable, net

​

 

4,139,662

​

 

—

​

 

—

​

 

4,090,982

Accrued interest receivable

​

 

30,591

​

 

—

​

 

30,591

​

 

—

Financial liabilities

​

 

​

​

 

​

​

 

​

​

 

​

Deposits

​

 

4,280,490

​

 

2,672,492

​

 

—

​

 

1,612,565

Securities sold under agreements to repurchase

​

​

20,000

​

​

—

​

​

20,000

​

​

—

Advances from FHLB

​

 

102,029

​

 

—

​

 

102,070

​

 

—

Accrued interest payable

​

 

15,334

​

 

—

​

 

15,334

​

 

—

Subordinated debt

​

 

23,221

​

 

—

​

 

—

​

 

22,076

Unrecognized financial instruments (net of contract amount)

​

 

​

​

 

​

​

 

​

​

 

​

Commitments to originate loans

​

 

—

​

 

—

​

 

—

​

 

—

Letters of credit

​

 

—

​

 

—

​

 

—

​

 

—

Lines of credit

​

 

—

​

 

—

​

 

—

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2025

​

​

​

​

​

Quoted Prices

​

​

​

​

​

​

​

​

​

​

​

in Active

​

​

​

​

Significant

​

​

​

​

​

Markets for

​

Significant Other

​

Unobservable

​

​

Carrying

​

Identical Assets

​

Observable Inputs

​

Inputs

(dollars in thousands)

    

Amount

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial assets

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

192,859

​

$

192,859

​

$

—

​

$

—

Interest-bearing time deposits

​

 

246

​

 

—

​

 

246

​

 

—

Stock in FHLB

​

 

9,361

​

 

—

​

 

9,361

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

Stock in Federal Reserve Bank of St. Louis

​

 

9,139

​

 

—

​

 

9,139

​

 

—

Loans receivable, net

​

 

4,048,961

​

 

—

​

 

—

​

 

3,976,696

Accrued interest receivable

​

 

26,018

​

 

—

​

 

26,018

​

 

—

Financial liabilities

​

 

​

​

 

​

​

 

​

​

 

​

Deposits

​

 

4,281,368

​

 

2,632,774

​

 

—

​

 

1,650,046

Securities sold under agreements to repurchase

​

​

15,000

​

​

—

​

 

15,000

​

 

—

Advances from FHLB

​

 

104,052

​

 

—

​

 

104,084

​

 

—

Accrued interest payable

​

​

14,186

​

 

—

​

 

14,186

​

 

—

Subordinated debt

​

​

23,208

​

​

—

​

 

—

​

 

21,722

Unrecognized financial instruments (net of contract amount)

​

​

​

​

​

​

​

 

​

​

 

​

Commitments to originate loans

​

​

—

​

 

—

​

 

—

​

 

—

Letters of credit

​

 

—

​

​

—

​

​

—

​

​

—

Lines of credit

​

 

—

​

 

—

​

 

—

​

 

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​