XML 30 R19.htm IDEA: XBRL DOCUMENT v3.25.3
FAIR VALUE OF FINANCIAL INSTRUMENTS
 3 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:
Level 1:Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2:Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs that are derived principally from, or corroborated by, market data by correlation or other means.
Level 3: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 the determination of fair value requires significant management judgment or estimation.
Assets and Liabilities Measured on a Recurring Basis:
The following methods and significant assumptions were used to estimate the fair values as of September 30, 2025 and June 30, 2025:
Investment Securities Available for Sale
The Company’s available for sale investment securities are reported at fair value utilizing Level 2 inputs. 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 securities’ terms and conditions, among other things. From time to time, the Company validates prices supplied by the independent pricing service by comparison to prices obtained from third-party sources or derived using internal models.
Derivatives
The Company has contracted with a third party vendor to provide periodic valuations for its interest rate derivatives to determine the fair value of its interest rate contracts. The vendor utilizes standard valuation methodologies applicable to interest rate derivatives such as discounted cash flow analysis and extensions of the Black-Scholes model. Such valuations are based upon readily observable market data and are therefore considered Level 2 valuations by the Company.
Those assets and liabilities measured at fair value on a recurring basis are summarized below:
September 30, 2025
Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
(In Thousands)
Assets:
Debt securities available for sale:
Asset-backed securities$— $58,488 $— $58,488 
Collateralized loan obligations— 331,855 — 331,855 
Corporate bonds— 137,323 — 137,323 
Total debt securities— 527,666 — 527,666 
Mortgage-backed securities available for sale:
Residential pass-through securities— 356,339 — 356,339 
Commercial pass-through securities— 132,177 — 132,177 
Total mortgage-backed securities— 488,516 — 488,516 
Total securities available for sale$— $1,016,182 $— $1,016,182 
Interest rate contracts$— $10,288 $— $10,288 
Total assets$— $1,026,470 $— $1,026,470 
Liabilities:
Interest rate contracts$— $5,182 $— $5,182 
Total liabilities$— $5,182 $— $5,182 
June 30, 2025
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
(In Thousands)
Assets:
Debt securities available for sale:
Asset-backed securities$— $59,498 $— $59,498 
Collateralized loan obligations— 323,245 — 323,245 
Corporate bonds— 140,117 — 140,117 
Total debt securities— 522,860 — 522,860 
Mortgage-backed securities available for sale:
Residential pass-through securities— 357,319 — 357,319 
Commercial pass-through securities— 132,790 — 132,790 
Total mortgage-backed securities— 490,109 — 490,109 
Total securities available for sale$— $1,012,969 $— $1,012,969 
Interest rate contracts$— $16,745 $— $16,745 
Total assets$— $1,029,714 $— $1,029,714 
Assets Measured on a Non-Recurring Basis:
The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis at September 30, 2025 and June 30, 2025:
Individually Analyzed Collateral Dependent Loans
The fair value of collateral dependent loans that are individually analyzed is determined based upon the appraised fair value of the underlying collateral, less costs to sell. Such collateral primarily consists of real estate and, to a lesser extent, other business assets. Management may also adjust appraised values to reflect estimated changes in market values or apply other adjustments to appraised values resulting from its knowledge of the collateral. Internal valuations may be utilized to determine the fair value of other business assets. For non-collateral-dependent loans, management estimates fair value using discounted cash flows based on inputs that are largely unobservable and instead reflect management’s own estimates of the assumptions as a market participant would in pricing such loans. Individually analyzed collateral dependent loans are considered a Level 3 valuation by the Company.
Those assets measured at fair value on a non-recurring basis are summarized below:
September 30, 2025
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
(In Thousands)
Collateral dependent loans:
Multi-family mortgage$— $— $16,328 $16,328 
Nonresidential mortgage— — 4,697 4,697 
Total$— $— $21,025 $21,025 
June 30, 2025
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
(In Thousands)
Collateral dependent loans:
Multi-family mortgage$— $— $16,385 $16,385 
Nonresidential mortgage— — 4,697 4,697 
Total$— $— $21,082 $21,082 
The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized adjusted Level 3 inputs to determine fair value:
September 30, 2025
Fair
Value		Valuation
Techniques		Unobservable
Input		RangeWeighted
Average
(Dollars in Thousands)
Collateral dependent loans:
Multi-family mortgage$16,328 Market valuation of underlying collateral
(1)
Adjustments to reflect current conditions/selling costs
(2)
6.00% - 23.00%
13.92 %
Nonresidential mortgage4,697 Market valuation of underlying collateral
(1)
Adjustments to reflect current conditions/selling costs
(2)
9.44%
9.44 %
Total$21,025 
June 30, 2025
Fair
Value		Valuation
Techniques		Unobservable
Input		RangeWeighted
Average
(Dollars in Thousands)
Collateral dependent loans:
Multi-family mortgage$16,385 Market valuation of underlying collateral
(1)
Adjustments to reflect current conditions/selling costs
(2)
6.00% - 24.00%
15.08 %
Nonresidential mortgage4,697 Market valuation of underlying collateral
(1)
Adjustments to reflect current conditions/selling costs
(2)
9.44%
9.44 %
Total$21,082 
___________________________________
(1)The fair value of collateral dependent loans is generally determined based on an independent appraisal of the fair value of a loan’s underlying collateral.
(2)The fair value basis of collateral dependent loans is adjusted to reflect management’s estimates of selling costs including, but not limited to, real estate brokerage commissions and title transfer fees.
At September 30, 2025, collateral dependent loans valued using Level 3 inputs comprised loans with principal balances totaling $22.0 million and a valuation allowance of $1.0 million reflecting an aggregate fair value of $21.0 million. By comparison, at June 30, 2025, collateral dependent loans valued using Level 3 inputs comprised loans with principal balances totaling $22.5 million and a valuation allowance of $1.4 million reflecting an aggregate fair value of $21.1 million.
Once a loan is foreclosed, the fair value of the other real estate owned continues to be evaluated based upon the fair value of the repossessed real estate originally securing the loan. At September 30, 2025 and June 30, 2025, the Company had no other real estate owned assets, respectively.
The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2025 and June 30, 2025:
September 30, 2025
Carrying
Amount		Fair
Value		Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
(In Thousands)
Financial assets:
Cash and cash equivalents$130,139 $130,139 $130,139 $— $— 
Investment securities available for sale1,016,182 1,016,182 — 1,016,182 — 
Investment securities held to maturity116,681 104,817 — 104,817 — 
Loans held-for-sale6,650 6,780 — 6,780 — 
Net loans receivable5,722,359 5,308,718 — — 5,308,718 
FHLB Stock62,011 — — — — 
Interest receivable29,460 29,460 39 7,916 21,505 
Interest rate contracts10,288 10,288 — 10,288 — 
Financial liabilities:
Deposits other than certificates of deposits3,664,294 3,664,294 3,664,294 — — 
Certificates of deposits1,967,588 1,963,698 — — 1,963,698 
Borrowings1,206,497 1,207,835 — — 1,207,835 
Interest payable on deposits3,422 3,422 1,383 — 2,039 
Interest payable on borrowings3,185 3,185 — — 3,185 
Interest rate contracts5,182 5,182 — 5,182 — 
June 30, 2025
Carrying
Amount		Fair
Value		Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
(In Thousands)
Financial assets:
Cash and cash equivalents$167,269 $167,269 $167,269 $— $— 
Investment securities available for sale1,012,969 1,012,969 — 1,012,969 — 
Investment securities held to maturity120,217 106,712 — 106,712 — 
Loans held-for-sale5,931 6,069 — 6,069 — 
Net loans receivable5,766,746 5,309,760 — — 5,309,760 
FHLB Stock64,261 — — — — 
Interest receivable28,098 28,098 40 6,930 21,128 
Interest rate contracts16,745 16,745 — 16,745 — 
Financial liabilities:
Deposits other than certificates of deposits3,698,643 3,698,643 3,698,643 — — 
Certificates of deposits1,976,574 1,970,863 — — 1,970,863 
Borrowings1,256,491 1,257,269 — — 1,257,269 
Interest payable on deposits5,259 5,259 1,710 — 3,549 
Interest payable on borrowings3,455 3,455 — — 3,455 
Interest rate contracts5,149 5,149 — 5,149 — 
Commitments. The fair value of commitments to fund credit lines and originate or participate in loans held in portfolio or loans held for sale is estimated using fees currently charged to enter into similar agreements taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed rate loan commitments, including those relating to loans held for sale that are considered derivative instruments for financial statement reporting purposes, the fair value also considers the difference between current levels of interest and the committed rates. The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, is not considered material for disclosure.
Limitations. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument. Because no fair value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature, involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
The fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to value anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment, and advances from borrowers for taxes and insurance. In addition, the ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.
Finally, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values.