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Disclosures About Fair Value of Assets (Tables)

3 Months Ended

Sep. 30, 2024

Fair Value Measurements of Assets Recognized on Recurring Basis

The following table presents the fair value measurements of assets 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, 2024 and June 30, 2024:


			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2024:
Available-for-sale securities:
U.S. Government and federal agency and Government sponsored enterprises (GSE’s)	$	5,763	$	—	$	5,763	$	—
Mortgage-backed: GSE residential		169,638		—		169,638		—
Small Business Administration		14,152		—		14,152		—
State and political subdivisions		3,098		—		1,041		2,057
Mortgage servicing rights		1,366		—		—		1,366

			Fair Value Measurements Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2024:
Available-for-sale securities:
U.S. Treasury	$	444	$	444	$	—	$	—
U.S. Government and federal agency and Government sponsored enterprises (GSE’s)		6,609		—		6,609		—
Mortgage-backed: GSE residential		166,236		—		166,236		—
Small Business Administration		14,086		—		14,086		—
State and political subdivisions		3,100		—		1,043		2,057
Mortgage servicing rights		1,491		—		—		1,491

Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements Recognized in Accompanying Balance Sheet

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs:


	Three months ended September 30, 2024
	Obligations of State and Political Subdivisions		Mortgage Servicing Rights			Total
Beginning balance	$	2,057	$	1,491		$	3,548
Transfers into Level 3		—		47			47
Transfers out of Level 3		—		(34	)		(34	)
Total realized and unrealized gains and losses included in net income		—		(138	)		(138	)
Purchases		—		—			—
Sales		—		—			—
Settlements		—		—			—

Ending balance	$	2,057	$	1,366		$	3,423

Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date	$	—	$	(138	)	$	(138	)


	Year ended June 30, 2024
	Obligations of State and Political Subdivisions			Mortgage Servicing Rights			Total
Beginning balance	$	2,361		$	1,482		$	3,843
Transfers into Level 3		—			151			151
Transfers out of Level 3		—			(143	)		(143	)
Total realized and unrealized gains and losses included in net income		—			1			1
Purchases		—			—			—
Sales		—			—			—
Settlements		(304	)		—			(304	)

Ending balance	$	2,057		$	1,491		$	3,548

Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date	$	—		$	1		$	1

Quantitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at September 30, 2024 and June 30, 2024.


	Fair Value at September 30, 2024		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	1,366	Discounted cash flow	Discount rate Constant prepayment rate Probability of default	10.0% (10.0%) 7.2% - 10.0% (7.7%) 0.08% - 0.12% (0.11%)
State and political subdivision	$	2,057	Discounted cash flow	Maturity/Call Date Weighted average coupon Marketability yield adjustment	1 month – 7 years 2.97% - 3.08% (3.04%) 1.0% - 2.0% (1.6%)


	Fair Value at June 30, 2024		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	1,491	Discounted cash flow	Discount rate Constant prepayment rate Probability of default	10.0% ( 10.0%) 6.2% - 8.0% (7.7%) 0.08% - 0.12% (0.11%)
State and political subdivision		2,057	Discounted cash flow	Maturity/Call Date Weighted average coupon Marketability yield adjustment	1 month – 7 years 2.97% - 3.08% (3.04%) 1.0% - 2.0% (1.6%)

Estimated Fair Values of Financial Instruments and Level within Fair Value Hierarchy in which Fair Value Measurements Fall

The following tables present estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2024 and June 30, 2024.


	Carrying Amount		Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30, 2024:
Financial assets
Cash and cash equivalents	$	7,784	$	7,784	$	—	$	—
Interest-bearing time deposits in banks		250		250		—		—
Loans, net of allowance for credit losses		647,064		—		—		619,357
Federal Home Loan Bank stock		4,758		—		4,758		—
Accrued interest receivable		3,823		—		3,823		—
Financial liabilities
Deposits		677,159		—		363,156		314,167
Repurchase agreements		17,913		—		17,913		—
Federal Home Loan Bank advances		83,499		—		83,119		—
Other borrowings		25,175				25,183
Advances from borrowers for taxes and insurance		510		—		510		—
Accrued interest payable		2,756		—		2,756		—
Unrecognized financial instruments (net of contract amount)		—		—		—		—
Commitments to originate loans		—		—		—		—


	Carrying Amount		Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2024:
Financial assets
Cash and cash equivalents	$	9,571	$	9,571	$	—	$	—
Interest-bearing time deposits in banks		250		250		—		—
Loans, net of allowance for credit losses		639,297		—		—		607,076
Federal Home Loan Bank stock		4,499		—		4,499		—
Accrued interest receivable		3,457		—		3,457		—
Financial liabilities
Deposits		727,177		—		407,544		318,612
Repurchase agreements		17,772		—		17,772		—
Federal Home Loan Bank advances		32,999		—		32,560		—
Other Borrowings		25,250		—		25,199		—
Advances from borrowers for taxes and insurance		968		—		968		—
Accrued interest payable		3,009		—		3,009		—
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans		—		—		—		—

The methods utilized to measure the fair value of financial instruments at September 30, 2024,

represent

an approximation of exit price; however, an actual exit price may differ.

- 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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