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Disclosures About Fair Value of Assets
 3 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Disclosures About Fair Value of Assets
Note 13:
Disclosures About Fair Value of Assets
Fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:
 
Level 1    Quoted prices in active markets for identical assets
Level 2    Observable inputs other than Level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets
Level 3    Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets
Recurring Measurements
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 fell at September 30, 2025 and June 30, 2025:
 
           
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, 2025:
            
Available-for-sale
securities:
            
U.S. Government and federal agency and Government sponsored enterprises (GSE’s)
    $ 916      $ —       $ 916      $ —   
Mortgage-backed: GSE residential
      174,345        —         174,345        —   
Small Business Administration
      12,815        —         12,815        —   
State and political subdivisions
      1,748        —         —         1,748  
Mortgage servicing rights
      1,430        —         —         1,430  
 
           
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, 2025:
            
Available-for-sale
securities:
            
U.S. Government and federal agency and Government sponsored enterprises (GSE’s)
      1,812        —         1,812        —   
Mortgage-backed: GSE residential
      171,079        —         171,079        —   
Small Business Administration
      13,114        —         13,114        —   
State and political subdivisions
      1,748        —         —         1,748  
Mortgage servicing rights
      1,429        —         —         1,429  
Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying condensed consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended September 30, 2025. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.
Available-for-sale
Securities
Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of, observable inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads,
two-sided
markets, benchmark securities, bid, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. Level 2 securities include U.S. Treasury, U.S. Government and federal agency, mortgage-backed securities (GSE—residential), Small Business Administration and state and political subdivisions. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.
Mortgage Servicing Rights
Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy.
 
Level 3 Reconciliation
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, 2025
  
    
Obligations of
State and
Political
Subdivisions
     
Mortgage
Servicing
Rights
     
Total
  
Beginning balance
    $   1,748      $   1,429      $   3,177  
Transfers into Level 3
      —         60        60  
Transfers out of Level 3
      —         (44 )       (44 ) 
Total realized and unrealized gains and losses included in net income
      —         (15 )       (15 ) 
Purchases
      —         —         —   
Sales
      —         —         —   
Settlements
      —         —         —   
  
 
 
     
 
 
     
 
 
  
Ending balance
    $ 1,748      $ 1,430      $ 3,178  
  
 
 
     
 
 
     
 
 
  
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
    $ —       $ (15 )     $ (15 ) 
  
 
 
     
 
 
     
 
 
  
 
    
Year ended June 30, 2025
  
    
Obligations of
State and
Political
Subdivisions
     
Mortgage
Servicing
Rights
     
Total
  
Beginning balance
    $  2,057      $  1,491      $  3,548  
Transfers into Level 3
      —         130        130  
Transfers out of Level 3
      —         (122 )       (122 ) 
Total realized and unrealized gains and losses included in net income
      —         (70 )       (70 ) 
Purchases
      —         —         —   
Sales
      —         —         —   
Settlements
      (309 )       —         (309 ) 
  
 
 
     
 
 
     
 
 
  
Ending balance
    $ 1,748      $ 1,429      $ 3,177  
  
 
 
     
 
 
     
 
 
  
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
    $ —       $ (70 )     $ (70 ) 
  
 
 
     
 
 
     
 
 
  
Realized and unrealized gains and losses for items reflected in the table above are included in net income in the condensed consolidated statements of income as noninterest income.
 
Nonrecurring Measurements
The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2025 and June 30, 2025:
 
           
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, 2025:
            
Foreclosed assets
    $ 40      $ —       $ —       $ 40  
June 30, 2025:
            
Foreclosed assets
    $ —       $ —       $ —       $ —   
The following table presents losses recognized on assets measured on a
non-recurring
basis for the three months ended September 30, 2025 and 2024:
 
    
Three Months Ended

September 30,
  
    
2025
     
2024
  
Individually evaluated collateral-dependent loans
    $ (122 )     $ —   
Foreclosed assets
    $ (104 )     $ —   
Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.
Foreclosed Assets
Foreclosed assets consist primarily of real estate owned. Real estate owned (“OREO”) is carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired. Estimated fair value of OREO is based on appraisals or evaluations. OREO is classified within Level 3 of the fair value hierarchy.
Appraisals of OREO are obtained when the real estate is acquired and subsequently as deemed necessary by the senior lending officer. Appraisals are reviewed for accuracy and consistency by the senior lending officer. Appraisers are selected from the list of approved appraisers maintained by management.
Individually Evaluated Collateral-dependent Loans, Net of the Allowance for Credit Losses on Loans
The estimated fair value of individually evaluated collateral-dependent loans is based on the appraised fair value of the collateral, less estimated cost to sell. Individually evaluated collateral-dependent loans are classified within Level 3 of the fair value hierarchy.
 
The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the senior lending officer. Appraisals are reviewed for accuracy and consistency by the senior lending officer. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the senior lending officer by comparison to historical results.
Unobservable (Level 3) Inputs
The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at September 30, 2025 and June 30, 2025.
 
    
Fair Value at
September 30, 2025
     
Valuation Technique
   
Unobservable Inputs
   
Range (Weighted
Average)
Mortgage servicing rights
    $ 1,430      Discounted cash flow   
Discount rate
Constant prepayment rate
Probability of default
   
9.5% (9.5%)
5.0% - 11.1% (10.3%)
0.07% - 0.12% (0.12%)
State and political subdivision
      1,748      Discounted cash flow   
Maturity/Call Date
Weighted average coupon
Marketability yield adjustment
   
1 month – 6 years
2.97% - 3.08% (3.04%)
1.0% - 2.0% (1.6%)
Foreclosed assets
      40      Market comparable properties    Comparability adjustments (%)    0% (0%)
 
    
Fair Value at
    June 30, 2025    
     
Valuation Technique
   
Unobservable Inputs
   
Range (Weighted
Average)
Mortgage servicing rights
    $  1,429      Discounted cash flow      
Discount rate
Constant prepayment rate
Probability of default
   
9.5% (9.5%)
4.9% - 9.8% (9.2%)
0.07% - 0.12% (0.12%)
State and political subdivision
      1,748      Discounted cash flow      
Maturity/Call Date
Weighted average coupon
Marketability yield adjustment
   
1 month –
6
years
2.97% - 3.08% (3.04%)
1.0% - 2.0% (1.6%)
 
Fair Value of Financial Instruments
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 fell at September 30, 2025 and June 30, 2025.
 
    
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, 2025:
            
Financial assets
            
Cash and cash equivalents
    $ 8,027      $ 8,027      $ —       $ —   
Interest-bearing time deposits in banks
      250        250        —         —   
Loans, net of allowance for credit losses
      619,282        —         —         598,392  
Federal Home Loan Bank stock
      4,844        —         4,844        —   
Accrued interest receivable
      3,693        —         3,693        —   
Financial liabilities
            
Deposits
      680,264        —         361,787        318,241  
Repurchase agreements
      18,130        —         18,130        —   
Federal Home Loan Bank advances
      69,124        —         68,007        —   
Advances from borrowers for taxes and insurance
      681        —         681        —   
Accrued interest payable
      1,812        —         1,812        —   
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, 2025:
            
Financial assets
            
Cash and cash equivalents
    $  20,092      $  20,092      $ —       $ —   
Interest-bearing time deposits in banks
      250        250        —         —   
Loans, net of allowance for credit losses
      633,603        —         —         610,986  
Federal Home Loan Bank stock
      5,174        —         5,174        —   
Accrued interest receivable
      3,545        —         3,545        —   
Financial liabilities
            
Deposits
      721,258        —         408,173        312,719  
Repurchase agreements
      18,795        —         18,795        —   
Federal Home Loan Bank advances
      54,124        —         52,892        —   
Advances from borrowers for taxes and insurance
      972        —         972        —   
Accrued interest payable
      1,861        —         1,861        —   
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, 2025, represent an approximation of exit price; however, an actual exit price may
differ
.