XML 68 R46.htm IDEA: XBRL DOCUMENT

Fair Value of Financial Instruments (Tables)

12 Months Ended

Jun. 30, 2025

Fair Value of Financial Instruments

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



								Net
					Unpaid Principal			Unrealized
(In Thousands)		Fair Value			or Base Cost			(Loss) Gain
As of June 30, 2025:
Loans held for investment, at fair value		$	1,018		$	1,158		$	(140)
Other equity investments, at fair value		$	730		$	—		$	730

As of June 30, 2024:
Loans held for investment, at fair value		$	1,047		$	1,200		$	(153)
Other equity investments, at fair value		$	540		$	—		$	540

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


		Fair Value Measurement at June 30, 2025 Using:
(In Thousands)		Level 1			Level 2			Level 3			Total
Assets:
Investment securities - available for sale:
U.S. government agency MBS		$	—		$	1,082		$	—		$	1,082
U.S. government sponsored enterprise MBS			—			446			—			446
Private issue CMO			—			—			79			79
Investment securities - available for sale			—			1,528			79			1,607

Loans held for investment, at fair value			—			—			1,018			1,018
Other equity investments, at fair value			—			730			—			730
Interest-only strips			—			—			6			6
Total assets		$	—		$	2,258		$	1,103		$	3,361

Liabilities:		$	—		$	—		$	—		$	—
Total liabilities		$	—		$	—		$	—		$	—


		Fair Value Measurement at June 30, 2024 Using:
(In Thousands)			Level 1			Level 2			Level 3			Total
Assets:
Investment securities - available for sale:
U.S. government agency MBS		$	—		$	1,208		$	—		$	1,208
U.S. government sponsored enterprise MBS			—			553			—			553
Private issue CMO			—			—			88			88
Investment securities - available for sale			—			1,761			88			1,849

Loans held for investment, at fair value			—			—			1,047			1,047
Other equity investments, at fair value			—			540			—			540
Interest-only strips			—			—			8			8
Total assets		$	—		$	2,301		$	1,143		$	3,444

Liabilities:		$	—		$	—		$	—		$	—
Total liabilities		$	—		$	—		$	—		$	—

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

The following tables provide a reconciliation of the beginning and ending balances during the periods shown of recurring fair value measurements recognized in the Consolidated Statements of Financial Condition using Level 3 inputs:


		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, 2024		$	88		$	1,047		$	8		$	1,143
Total gains or losses (realized/unrealized):
Included in earnings			—			13			—			13
Included in other comprehensive income (loss)			3			—			(2)			1
Purchases			—			—			—			—
Issuances			—			—			—			—
Settlements			(12)			(42)			—			(54)
Transfers in and/or out of Level 3			—			—			—			—
Ending balance at June 30, 2025		$	79		$	1,018		$	6		$	1,103

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


		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, 2023		$	102		$	1,312		$	9		$	1,423
Adjustment due to ASC 326 CECL adoption			—			28			—			28
Total gains or losses (realized/ unrealized):
Included in earnings			—			(10)			—			(10)
Included in other comprehensive income (loss)			(1)			—			(1)			(2)
Purchases			—			—			—			—
Issuances			—			—			—			—
Settlements			(13)			(283)			—			(296)
Transfers in and/or out of Level 3			—			—			—			—
Ending balance at June 30, 2024		$	88		$	1,047		$	8		$	1,143

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

Schedule of fair value assets measured on nonrecurring basis

The following fair value hierarchy table presents information about the Corporation’s assets measured at fair value at the dates indicated on a nonrecurring basis:


		Fair Value Measurement at June 30, 2025 Using:
(In Thousands)		Level 1			Level 2			Level 3			Total
Mortgage servicing assets		$	—		$	—		$	88		$	88
Total		$	—		$	—		$	88		$	88


		Fair Value Measurement at June 30, 2024 Using:
(In Thousands)		Level 1			Level 2			Level 3			Total
Loans with individually evaluated allowance		$	—		$	—		$	695		$	695
Mortgage servicing assets			—			—			87			87
Total		$	—		$	—		$	782		$	782

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, including derivative financial instruments, which are measured at fair value and categorized within Level 3 as of June 30, 2025:


											Impact to
		Fair Value									Valuation
		As of									from an
		June 30,			Valuation				Range⁽¹⁾		Increase in
(Dollars In Thousands)		2025			Techniques		Unobservable Inputs		(Weighted Average)		Inputs⁽²⁾
Assets:
Securities available-for sale: Private issue CMO		$	79		Market comparable pricing		Comparability adjustment		(1.2%) - 0.4% (0.1%)		Increase

Loans held for investment, at fair value		$	1,018		Relative value analysis		Broker quotes		87.8% - 89.6% (88.9%) of par		Increase
							Credit risk factor		0.9% - 1.1% (1.0%)		Decrease

MSAs		$	88		Discounted cash flow		Prepayment rate (CPR)		5.7% - 60.0% (10.8%)		Decrease
							Discount rate		9.0% - 10.5% (9.0%)		Decrease

Interest-only strips		$	6		Discounted cash flow		Prepayment rate (CPR)		9.0% - 19.6% (15.2%)		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.

Schedule of carrying amount and fair value of financial instruments

The carrying amount and fair value of the Corporation’s other financial instruments as of June 30, 2025 and 2024 were as follows:


		June 30, 2025
		Carrying			Fair
(In Thousands)		Amount			Value			Level 1			Level 2			Level 3
Financial assets:
Loans held for investment, not recorded at fair value		$	1,044,727		$	996,332		$	—		$	—		$	996,332
Investment securities - held to maturity		$	109,399		$	99,126		$	—		$	99,126		$	—
FHLB – San Francisco stock		$	9,568		$	9,568		$	—		$	9,568		$	—

Financial liabilities:
Deposits		$	888,772		$	889,115		$	—		$	889,115		$	—
Borrowings		$	213,073		$	213,505		$	—		$	213,505		$	—


		June 30, 2024
		Carrying			Fair
(In Thousands)		Amount			Value			Level 1			Level 2			Level 3
Financial assets:
Loans held for investment, not recorded at fair value		$	1,051,932		$	973,453		$	—		$	—		$	973,453
Investment securities - held to maturity		$	130,051		$	114,393		$	—		$	114,393		$	—
FHLB – San Francisco stock		$	9,568		$	9,568		$	—		$	9,568		$	—

Financial liabilities:
Deposits		$	888,348		$	888,527		$	—		$	888,527		$	—
Borrowings		$	238,500		$	237,691		$	—		$	237,691		$	—

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.

+ References + Details