v3.26.1
Disclosures About Fair Value of Assets and Liabilities
 9 Months Ended
Mar. 31, 2026
Disclosures About Fair Value of Assets and Liabilities [Abstract]  
Disclosures About Fair Value of Assets and Liabilities

Note 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 and 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)		 
March 31, 2026                
Agency mortgage-backed: residential  $10,265   $      –   $10,265   $     – 
                     
June 30, 2025                    
Agency mortgage-backed: residential  $9,757   $–   $9,757   $–

 

There were no assets or liabilities which were measured at fair value on a nonrecurring basis at March 31, 2026, and June 30, 2025.

 

The following is a disclosure of the fair value of financial instruments, both assets and liabilities, whether or not recognized in the condensed 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 March 31, 2026 and June 30, 2025 are as follows:

 

          Fair Value Measurements at  
    Carrying     March 31, 2026 Using  
(in thousands)   Value     Level 1     Level 2     Level 3     Total  
Financial assets                              
Cash and cash equivalents   $ 21,296     $ 21,296                     $ 21,296  
Available-for-sale securities     10,265             $ 10,265               10,265  
Held-to-maturity securities     143               141               141  
Loans receivable – net     328,223                     $ 331,563       331,563  
Federal Home Loan Bank stock     3,804                               n/a  
Accrued interest receivable     1,593               1,593               1,593  
                                         
Financial liabilities                                        
Deposits   $ 273,689     $ 76,428     $ 197,343               273,771  
Federal Home Loan Bank advances     48,937               49,094               49,094  
Advances by borrowers for taxes and insurance     593               593               593  
Accrued interest payable     709               709               709  

 

       Fair Value Measurements at 
   Carrying   June 30, 2025 Using 
(in thousands)  Value   Level 1   Level 2   Level 3   Total 
Financial assets                    
Cash and cash equivalents  $19,480   $19,480             $19,480 
Available-for-sale securities   9,757        $9,757         9,757 
Held-to-maturity securities   171         167         167 
Loans receivable - net   327,248             $319,432    319,432 
Federal Home Loan Bank stock   3,980                   n/a 
Accrued interest receivable   1,438         1,438         1,438 
                          
Financial liabilities                         
Deposits  $277,563   $77,988   $199,603        $277,591 
Federal Home Loan Bank advances   42,760         42,837         42,837 
Advances by borrowers for taxes and insurance   869         869         869 
Accrued interest payable   949         949         949