XML 35 R25.htm IDEA: XBRL DOCUMENT v3.23.1

Fair Value of Financial Instruments (Tables)

9 Months Ended

Mar. 31, 2023

Fair Value of Financial Instruments

Schedule of aggregate fair value and aggregate unpaid principal balance of loans held for sale

​

​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	Aggregate		​	​	​
​	​	​	​	​	Unpaid		​	Net
​	​	Aggregate		​	Principal		​	Unrealized
(In Thousands)		Fair Value			Balance			Loss
As of March 31, 2023:	​	​	​	​	​	​	​	​	​
Loans held for investment, at fair value	​	$	1,352	​	$	1,506	​	$	(154)
​	​	​	​	​	​	​	​	​	​
As of June 30, 2022:	​			​			​
Loans held for investment, at fair value	​	$	1,396	​	$	1,569	​	$	(173)

​

Schedule of fair value, assets and liabilities measured on recurring basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurement at March 31, 2023 Using:

(In Thousands)

Level 1

Level 2

Level 3

Total

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Investment securities - available for sale:

​

​

​

​

​

​

​

​

​

​

​

​

U.S. government agency MBS

​

$

—

​

$

1,440

​

$

—

​

$

1,440

U.S. government sponsored enterprise MBS

​

—

​

713

​

—

​

713

Private issue CMO

​

—

​

—

​

98

​

98

Investment securities - available for sale

​

—

​

2,153

​

98

​

2,251

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans held for investment, at fair value

​

—

​

—

​

1,352

​

1,352

Interest-only strips

​

—

​

—

​

8

​

8

Total assets

​

$

—

​

$

2,153

​

$

1,458

​

$

3,611

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities:

​

$

—

​

$

—

​

$

—

​

$

—

Total liabilities

​

$

—

​

$

—

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurement at June 30, 2022 Using:

(In Thousands)

​

Level 1

​

​

Level 2

​

Level 3

​

Total

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Investment securities - available for sale:

​

​

​

​

​

​

​

​

​

​

​

​

U.S. government agency MBS

​

$

—

​

$

1,698

​

$

—

​

$

1,698

U.S. government sponsored enterprise MBS

​

—

​

865

​

—

​

865

Private issue CMO

​

—

​

—

​

113

​

113

Investment securities - available for sale

​

—

​

2,563

​

113

​

2,676

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans held for investment, at fair value

​

—

​

—

​

1,396

​

1,396

Interest-only strips

​

—

​

—

​

7

​

7

Total assets

​

$

—

​

$

2,563

​

$

1,516

​

$

4,079

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities:

​

$

—

​

$

—

​

$

—

​

$

—

Total liabilities

​

$

—

​

$

—

​

$

—

​

$

—

​

Schedule for reconciliation of recurring fair value measurements using level 3 inputs

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Quarter Ended March 31, 2023

​

​

Fair Value Measurement

​

​

Using Significant Other Unobservable Inputs

​

​

(Level 3)

​

​

Private

​

Loans Held For

​

Interest-

​

​

​

​

Issue

​

Investment, at

​

Only

​

​

(In Thousands)

CMO

fair value(1)

Strips

Total

Beginning balance at December 31, 2022

​

$

102

​

$

1,345

​

$

9

​

$

1,456

Total gains or losses (realized/unrealized):

​

​

​

​

​

​

​

​

​

​

​

​

Included in earnings

​

—

​

30

​

—

​

30

Included in other comprehensive income (loss)

​

(1)

​

—

​

(1)

​

(2)

Purchases

​

—

​

—

​

—

​

—

Issuances

​

—

​

—

​

—

​

—

Settlements

​

(3)

​

(23)

​

—

​

(26)

Transfers in and/or out of Level 3

​

—

​

—

​

—

​

—

Ending balance at March 31, 2023

​

$

98

​

$

1,352

​

$

8

​

$

1,458

​

(1) The valuation of loans held for investment at fair value includes management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Quarter Ended March 31, 2022

​

​

Fair Value Measurement

​

​

Using Significant Other Unobservable Inputs

​

​

(Level 3)

​

​

Private

​

Loans Held For

​

Interest-

​

​

​

​

Issue

​

Investment, at

​

Only

​

​

(In Thousands)

CMO

fair value(1)

Strips

Total

Beginning balance at December 31, 2021

​

$

146

​

$

1,555

​

$

9

​

$

1,710

Total gains or losses (realized/unrealized):

​

​

​

​

​

​

​

​

​

​

​

​

Included in earnings

​

—

​

(67)

​

(1)

​

(68)

Included in other comprehensive income (loss)

​

(2)

​

—

​

—

​

(2)

Purchases

​

—

​

—

​

—

​

—

Issuances

​

—

​

—

​

—

​

—

Settlements

​

(9)

​

(18)

​

—

​

(27)

Transfers in and/or out of Level 3

​

—

​

—

​

—

​

—

Ending balance at March 31, 2022

​

$

135

​

$

1,470

​

$

8

​

$

1,613

​

​

(1) The valuation of loans held for investment at fair value includes management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Nine Months Ended March 31, 2023

​

​

Fair Value Measurement

​

​

Using Significant Other Unobservable Inputs

​

​

(Level 3)

​

​

Private

​

Loans Held For

​

Interest-

​

​

​

​

Issue

​

Investment, at

​

Only

​

​

(In Thousands)

CMO

fair value(1)

Strips

Total

Beginning balance at June 30, 2022

​

$

113

​

$

1,396

​

$

7

​

$

1,516

Total gains or losses (realized/unrealized):

​

​

​

​

​

​

​

​

​

​

​

​

Included in earnings

​

—

​

19

​

—

​

19

Included in other comprehensive income (loss)

​

(5)

​

—

​

1

​

(4)

Purchases

​

—

​

—

​

—

​

—

Issuances

​

—

​

—

​

—

​

—

Settlements

​

(10)

​

(63)

​

—

​

(73)

Transfers in and/or out of Level 3

​

—

​

—

​

—

​

—

Ending balance at March 31, 2023

​

$

98

​

$

1,352

​

$

8

​

$

1,458

​

(1) The valuation of loans held for investment at fair value includes management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Nine Months Ended March 31, 2022

​

​

Fair Value Measurement

​

​

Using Significant Other Unobservable Inputs

​

​

(Level 3)

​

​

Private

​

Loans Held For

​

Interest-

​

​

​

​

Issue

​

Investment, at

​

Only

​

​

(In Thousands)

CMO

fair value(1)

Strips

Total

Beginning balance at June 30, 2021

​

$

154

​

$

1,874

​

$

10

​

$

2,038

Total gains or losses (realized/unrealized):

​

​

​

​

​

​

​

​

​

​

​

​

Included in earnings

​

—

​

(59)

​

—

​

(59)

Included in other comprehensive income (loss)

​

(2)

​

—

​

(2)

​

(4)

Purchases

​

—

​

—

​

—

​

—

Issuances

​

—

​

—

​

—

​

—

Settlements

​

(17)

​

(345)

​

—

​

(362)

Transfers in and/or out of Level 3

​

—

​

—

​

—

​

—

Ending balance at March 31, 2022

​

$

135

​

$

1,470

​

$

8

​

$

1,613

​

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Schedule of fair value assets measured on nonrecurring basis

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurement at March 31, 2023 Using:

(In Thousands)

Level 1

Level 2

Level 3

Total

Non-performing loans

​

$

—

​

$

56

​

$

889

​

$

945

Mortgage servicing assets

​

—

​

—

​

94

​

94

Total

​

$

—

​

$

56

​

$

983

​

$

1,039

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurement at June 30, 2022 Using:

(In Thousands)

​

Level 1

​

Level 2

​

Level 3

​

Total

Non-performing loans

$

—

​

$

515

​

$

908

​

$

1,423

Mortgage servicing assets

​

—

​

—

​

168

​

168

Total

​

$

—

​

$

515

​

$

1,076

​

$

1,591

​

Schedule of additional information about valuation techniques and inputs used for assets and liabilities

The following table presents additional information about valuation techniques and inputs used for assets and liabilities, which are measured at fair value and categorized within Level 3 as of March 31, 2023:

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	Impact to
​	​	Fair Value		​	​	​	​	​	​	​	Valuation
​	​	As of		​	​	​	​	​	​	​	from an
​	​	March 31,		​	Valuation	​	​	​	Range(1)	​	Increase in
(Dollars In Thousands)		2023			Techniques		Unobservable Inputs		(Weighted Average)		Inputs(2)
Assets:	​	​	​	​	​	​	​	​	​	​	​
Securities available-for sale: Private issue CMO	​	$	98		Market comparable pricing		Comparability adjustment		(8.2%) - (8.7%) (8.6%)		Increase
​	​	​	​	​	​	​	​	​	​	​	​
Loans held for investment, at fair value	​	$	1,352		Relative value analysis		Broker quotes		91.5% - 98.0% (93.1%)		Increase
​	​	​	​	​	​	​	Credit risk factor		1.2% - 6.6% (3.3%)	​	Decrease
​	​	​	​	​	​	​	​	​	​	​	​
Non-performing loans(3)	​	$	710		Discounted cash flow		Default rates		5.0%	​	Decrease
​	​	​	​	​	​	​	​	​	​	​	​
Non-performing loans(4)	​	$	179		Relative value analysis		Credit risk factor		20.0%		Decrease
​	​	​	​	​	​	​	​	​	​	​	​
Mortgage servicing assets	​	$	94		Discounted cash flow		Prepayment speed (CPR)		5.3% - 60.0% (9.7%)		Decrease
​	​	​	​	​	​		Discount rate		9.0% - 10.5% (9.1%)		Decrease
​	​	​	​	​	​	​	​	​	​	​	​
Interest-only strips	​	$	8		Discounted cash flow		Prepayment speed (CPR)		7.2% - 15.1% (14.6%)	​	Decrease
​	​	​	​	​	​		Discount rate		9.0%		Decrease
​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​
Liabilities:	​
​	​	​	​	​	​	​	​	​	​	​	​
None	​	​	​	​	​	​	​	​	​	​	​

​

(1) The range is based on the historical estimated fair values and management estimates.

(2) Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 asset instruments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements.

(3) Consists of restructured loans.

(4) Consists of other non-performing loans, excluding restructured loans.

​

Schedule of carrying amount and fair value of financial instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2023

​

​

Carrying

​

Fair

​

​

​

​

​

​

​

​

​

(In Thousands)

Amount

Value

Level 1

Level 2

Level 3

Financial assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans held for investment, not recorded at fair value

​

$

1,076,352

​

$

1,002,191

​

$

—

​

$

—

​

$

1,002,191

Investment securities - held to maturity

​

$

161,336

​

$

143,870

​

$

—

​

$

143,870

​

$

—

FHLB – San Francisco stock

​

$

8,239

​

$

8,239

​

$

—

​

$

8,239

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial liabilities:

​

​

​

​

​

Deposits

​

$

983,046

​

$

866,706

​

$

—

​

$

—

​

$

866,706

Borrowings

​

$

205,010

​

$

203,541

​

$

—

​

$

—

​

$

203,541

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2022

​

​

Carrying

​

Fair

​

​

​

​

​

​

​

​

​

(In Thousands)

Amount

Value

Level 1

Level 2

Level 3

Financial assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans held for investment, not recorded at fair value

​

$

938,596

​

$

892,339

​

$

—

​

$

—

​

$

892,339

Investment securities - held to maturity

​

$

185,745

​

$

171,724

​

$

—

​

$

171,724

​

$

—

FHLB – San Francisco stock

​

$

8,239

​

$

8,239

​

$

—

​

$

8,239

​

$

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Financial liabilities:

​

​

​

​

​

​

​

​

​

​

Deposits

​

$

955,504

​

$

917,220

​

$

—

​

$

—

​

$

917,220

Borrowings

​

$

85,000

​

$

84,299

​

$

—

​

$

—

​

$

84,299

​

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- Definition

-- None. No documentation exists for this element. --

+ References

No definition available.

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- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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-Publisher FASB
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- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References

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-Publisher FASB
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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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- References

No definition available.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

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