v3.25.4
Fair Values of Assets And Liabilities
 6 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Fair values of assets and liabilities

5. FAIR VALUES OF ASSETS AND LIABILITIES

Determination of fair value

The Company uses fair value measurements to record fair value adjustments to certain 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 is best determined based upon quoted market prices. However, in some instances, quoted market prices may not be available. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques, including collateral value. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the assets.

The following methods and assumptions were used by the Company in estimating fair value:

Cash and Cash Equivalents – For these financial instruments, which have original maturities of 90 days or less, their carrying amounts reported in the Consolidated Balance Sheets approximate fair value.

Available for sale and held to maturity securities – The Company’s investment in debt securities is generally classified within Level 2 of the fair value hierarchy. For those securities, the Company obtains fair value measurements from independent pricing services which are not adjusted by management. The fair value measurements consider observable data that considers standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, credit spreads and new issue data.

FHLB Stock – The fair value of FHLB stock approximates the carrying amount based on the redemption provisions of the FHLB. These assets were classified as Level 2.

Loans – The fair value of loans is measured on an exit price basis incorporating discounts for credit, liquidity and marketability factors. Loans were classified as Level 3 since the valuation methodology utilizes significant unobservable inputs.

Accrued Interest Receivable – For these financial instruments, which have original maturities of 90 days or less, their carrying amounts reported in the Consolidated Balance Sheets approximate fair value. These assets were classified as Level 2.

Deposits – The fair value of deposits is valued using a replacement cost of funds approach and discounted to the market rates and based on weighted remaining maturity for maturing deposits. Deposits were classified as Level 3 since the valuation methodology utilizes significant unobservable inputs.

FHLB Advances – The fair value of the FHLB Advances approximates fair value amount of these liabilities were classified as Level 2.

Accrued Interest Payable and Mortgagor's escrow accounts – For these financial instruments, which have original maturities of 90 days or less, their carrying amounts reported in the Consolidated Balance Sheets approximate fair value. These liabilities were classified as Level 2.

Derivative Instruments – The fair value of derivative instruments are estimated using a third-party derivative valuation expert who relies on Level 2 inputs, mainly interest cash flow models to determine value by calculation a settlement termination value with the counterparty.

Financial instruments measured at fair value on a recurring basis

Financial instruments measured at fair value on a recurring basis are summarized below. There are no liabilities measured at fair value on recurring basis at June 30, 2025.

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Fair Value

 

 

(In thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities available for sale

 

$

—

 

 

$

63,854

 

 

$

—

 

 

$

63,854

 

Derivative assets

 

 

—

 

 

 

118

 

 

 

—

 

 

 

118

 

Total

 

$

—

 

 

$

63,972

 

 

$

—

 

 

$

63,972

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

$

—

 

 

$

118

 

 

$

—

 

 

$

118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Fair Value

 

Assets

 

(In thousands)

 

Debt securities available for sale

 

$

—

 

 

$

47,299

 

 

$

—

 

 

$

47,299

 

Total

 

$

—

 

 

$

47,299

 

 

$

—

 

 

$

47,299

 

Assets measured at fair value on a non-recurring basis

The Company may also be required, from time to time, to measure certain other assets and liabilities at fair value on a non-recurring basis in accordance with generally accepted accounting principles.

These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. There were no assets or liabilities measured at fair value on a non-recurring basis at June 30, 2025.

 

Summary of Fair Values of Financial Instruments

The estimated fair values, and related carrying amounts, of the Bank’s financial instruments are as follows. Certain financial instruments and all non-financial instruments are exempt from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein do not represent the underlying fair value of the Company.

 

 

Carrying

 

 

Fair Value

 

 

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

(In Thousands)

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

54,785

 

 

$

54,785

 

 

$

—

 

 

$

—

 

Securities available for sale

 

 

63,854

 

 

 

—

 

 

 

63,854

 

 

 

—

 

Securities held to maturity

 

 

58,893

 

 

 

—

 

 

 

57,654

 

 

 

—

 

Federal Home Loan Bank stock

 

 

6,161

 

 

 

—

 

 

 

6,161

 

 

 

—

 

Derivative assets

 

 

118

 

 

 

 

 

 

118

 

 

 

 

Loans, net

 

 

800,153

 

 

 

—

 

 

 

—

 

 

 

776,284

 

Accrued interest receivable

 

 

3,626

 

 

 

—

 

 

 

3,626

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

746,323

 

 

 

—

 

 

 

—

 

 

 

712,801

 

Federal Home Loan Bank advances

 

 

143,596

 

 

 

—

 

 

 

143,980

 

 

 

—

 

Mortgagors’ escrow accounts

 

 

1,987

 

 

 

—

 

 

 

1,987

 

 

 

—

 

Accrued interest payable

 

 

434

 

 

 

—

 

 

 

434

 

 

 

—

 

Derivative liabilities

 

 

118

 

 

 

—

 

 

 

118

 

 

 

—

 

June 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

55,244

 

 

$

55,244

 

 

$

—

 

 

$

—

 

Securities available for sale

 

 

47,299

 

 

 

—

 

 

 

47,299

 

 

 

—

 

Securities held to maturity

 

 

57,211

 

 

 

—

 

 

 

55,323

 

 

 

—

 

Federal Home Loan Bank stock

 

 

6,278

 

 

 

—

 

 

 

6,278

 

 

 

—

 

Loans, net

 

 

751,220

 

 

 

—

 

 

 

—

 

 

 

719,669

 

Accrued interest receivable

 

 

3,327

 

 

 

—

 

 

 

3,327

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

679,182

 

 

 

—

 

 

 

—

 

 

 

644,452

 

Federal Home Loan Bank advances

 

 

147,000

 

 

 

—

 

 

 

147,082

 

 

 

—

 

Mortgagors’ escrow accounts

 

 

1,756

 

 

 

—

 

 

 

1,756

 

 

 

—

 

Accrued interest payable

 

 

538

 

 

 

—

 

 

 

538

 

 

 

—