v3.25.2
Loan Servicing
 12 Months Ended
Jun. 30, 2025
Transfers and Servicing [Abstract]  
Loan Servicing
Note 5:
Loan Servicing
Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others was $134,304,000 and $133,786,000 at June 30, 2025 and 2024, respectively.
Custodial escrow balances in connection with the foregoing loan servicing were $1,127,000 and $1,090,000 at June 30, 2025 and 2024, respectively.
The aggregate fair value of capitalized mortgage servicing rights at June 30, 2025 and 2024 was $1,429,000 and $1,491,000, respectively. Comparable market values and a valuation model that calculates the present value of future cash flows were used to estimate fair value. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as costs to service, a discount rate, custodial earnings rate, default rates and losses and prepayment speeds.
 
 
The following summarizes the activity in mortgage servicing rights measured using the fair value method:
 
    
2025
     
2024
  
Fair value, beginning of period
    $ 1,491      $ 1,482  
Additions:
      
Servicing assets resulting from asset transfers
      130        151  
Subtractions:
      
Payments received and loans refinanced
      (122 )       (143 ) 
Changes in fair value, due to changes in valuation inputs or assumptions
      (70 )       1  
  
 
 
     
 
 
  
Fair value, end of period
    $ 1,429      $ 1,491  
  
 
 
     
 
 
  
For purposes of measuring impairment, risk characteristics including product type, investor type, and interest rates, were used to stratify the originated mortgage servicing rights.