XML 25 R15.htm IDEA: XBRL DOCUMENT v3.22.2.2
Disclosures About Fair Value of Assets and Liabilities
 3 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Disclosures About Fair Value of Assets and Liabilities

5. Disclosures About Fair Value of Assets and Liabilities

 

ASC topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (exit price) at the measurement date. ASC topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes six levels of inputs that may be used to measure fair value:

 

Level 1 – Quoted prices in active markets for identical assets or liabilities.

 

Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active 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 or liabilities.

 

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.

 

Following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

 

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. Level 2 securities include agency mortgage-backed securities and agency bonds.

 

Financial assets measured at fair value on a recurring basis are summarized below:

 

   Fair Value Measurements Using 
(in thousands)  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, 2022                
Agency mortgage-backed: residential  $14,151   $
        –
   $14,151   $
       –
 
                     
June 30, 2022                    
Agency mortgage-backed: residential  $10,477   $
–
   $10,477   $
–
 

 

There were no assets or liabilities which were measured at fair value on a nonrecurring basis at September 30, 2022, and June 30, 2022.

 

The following is a disclosure of the fair value of financial instruments, both assets and liabilities, whether or not recognized in the consolidated balance sheet, for which it is practicable to estimate that value. For financial instruments where quoted market prices are not available, fair values are based on estimates using present value and other valuation methods.

 

The methods used are greatly affected by the assumptions applied, including the discount rate and estimates of future cash flows. Therefore, the fair values presented may not represent amounts that could be realized in an exchange for certain financial instruments.

 

Based on the foregoing methods and assumptions, the carrying value and fair value of the Company’s financial instruments at September 30, 2022 and June 30, 2022 are as follows:

 

       Fair Value Measurements at 
   Carrying   September 30, 2022 Using 
(in thousands)  Value   Level 1   Level 2   Level 3   Total 
Financial assets                    
Cash and cash equivalents  $8,635   $8,635    
 
    
 
   $8,635 
Available-for-sale securities   14,151    
 
   $14,151    
 
    14,151 
Held-to-maturity securities   321    
 
    302    
 
    302 
Loans receivable - net   292,659    
 
    
 
   $287,011    287,011 
Federal Home Loan Bank stock   4,949    
 
    
 
    
 
    n/a 
Accrued interest receivable   799    
 
    799    
 
    799 
                          
Financial liabilities                         
Deposits  $226,292   $109,157   $116,245    
 
    225,402 
Federal Home Loan Bank advances   50,752    
 
    49,657    
 
    49,657 
Advances by borrowers for taxes and insurance   1,095    
 
    1,095    
 
    1,095 
Accrued interest payable   11    
 
    11    
 
    11 

 

       Fair Value Measurements at 
   Carrying   June 30, 2022 Using 
(in thousands)  Value   Level 1   Level 2   Level 3   Total 
Financial assets                    
Cash and cash equivalents  $25,823   $25,823    
 
    
 
   $25,823 
                          
Available-for-sale securities   10,477    
 
   $10,477    
 
    10,477 
Held-to-maturity securities   339    
 
    323    
 
    323 
Loans held for sale   152    
 
    153    
 
    153 
Loans receivable - net   274,583    
 
    
 
   $271,994    271,994 
Federal Home Loan Bank stock   6,498    
 
    
 
    
 
    n/a 
Accrued interest receivable   649    
 
    649    
 
    649 
                          
Financial liabilities                         
Deposits  $239,857   $115,152   $124,682        $239,834 
Federal Home Loan Bank advances   34,066    
 
    33,688    
 
    33,688 
Advances by borrowers for taxes and insurance   766    
 
    766    
 
    766 
Accrued interest payable   12    
 
    12    
 
    12