Business Combination (Tables)

12 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Summary of Assets Acquired and Liabilities Assumed Through Merger at Fair Value

The Company recorded the assets acquired and liabilities assumed through the merger at fair value as summarized in the following table:


	As Recorded by MSB		Fair Value Adjustments			As Recorded at Acquisition
	(In Thousands)
Cash paid for acquisition						$	9,830
Value of stock issued						45,133
Total purchase price						$	54,963

Cash and cash equivalents	$	14,126	$	—		$	14,126
Investment securities	4,000		(510)		(a)	3,490
Loans receivable	537,589		(7,345)		(b)	530,244
Allowance for loan losses	(6,037)		6,037		(c)	—
Premises and equipment	7,698		(3,221)		(d)	4,477
FHLB stock	3,345		—			3,345
Accrued interest receivable	1,701		—			1,701
Core deposit intangibles	—		690		(e)	690
Bank owned life insurance	14,663		—			14,663
Deferred income taxes, net	1,729		2,152		(f)	3,881
Other assets	4,830		495		(g)	5,325
Total assets acquired	$	583,644	$	(1,702)		$	581,942

Deposits	$	458,392	$	1,786	(h)	$	460,178
FHLB borrowings	62,900		—			62,900
Advance payments by borrowers for taxes	794		—			794
Other liabilities	810		(756)		(i)	54
Total liabilities assumed	$	522,896	$	1,030		$	523,926

Net assets acquired						$	58,016
Bargain purchase gain						$	(3,053)

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Explanation of certain fair value related adjustments:

(a)Represents the fair value adjustments on investment securities.

(b)Represents the fair value adjustments on the net book value of loans, which includes an interest rate mark and credit mark adjustment and the reversal of deferred fees/costs and premiums.

(c)Represents the elimination of MSB’s allowance for loan losses.

(d)Represents the fair value adjustments to reflect the fair value of land and buildings and premises and equipment, which will be amortized on a straight-line basis over the estimated useful lives of the individual assets.

(e)Represents the intangible assets recorded to reflect the fair value of core deposits. The core deposit asset was recorded as an identifiable intangible asset and will be amortized on an accelerated basis over the estimated average life of the deposit base.

(f)Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded.

(g)Represents an adjustment to other assets acquired.

(h)Represents fair value adjustments on time deposits, which will be treated as a reduction of interest expense over the remaining term of the time deposits.

(i)Represents an adjustment to other liabilities assumed.