Borrowings

12 Months Ended

Jun. 30, 2026

Note 7: Borrowings

As of June 30, 2026, the Bank’s FHLB – San Francisco maximum borrowing capacity was approximately $426.1 million, which was limited to 35% of total assets reported on the Bank’s March 31, 2026 Call Report. This borrowing capacity was supported by collateral consisting of certain real estate loans with an aggregate loan balance of $641.3 million and

investment securities of $4.2 million. As of June 30, 2026, the Bank’s borrowings from the FHLB – San Francisco were $157.0 million, with varying maturity dates through 2028. In addition, the Bank utilizes its borrowing facility for letters of credit and for the Mortgage Partnership Finance (“MPF”) program credit enhancement. The outstanding letters of credit were $13.0 million and the outstanding MPF credit enhancement was $216,000 at June 30, 2026. As of June 30, 2026, the remaining borrowing capacity with the FHLB – San Francisco was $255.9 million.

As of June 30, 2025, the Bank’s FHLB – San Francisco maximum borrowing capacity was approximately $504.1 million, which was limited to 40% of total assets reported on the Bank’s quarterly Call Report ended March 31, 2025. This borrowing capacity was collateralized by pledges of certain real estate loans with an aggregate loan balance of $734.4 million and investment securities of $4.7 million. As of June 30, 2025, the Bank’s borrowings from the FHLB – San Francisco were $213.0 million, with varying maturity dates through 2028. In addition, the Bank utilizes its borrowing facility for letters of credit and for the MPF program credit enhancement. The outstanding letters of credit were $8.5 million and the outstanding MPF credit enhancement was $216,000 at June 30, 2025. As of June 30, 2025, the remaining borrowing capacity with FHLB – San Francisco was $282.3 million.

In addition, as of June 30, 2026 and 2025, the Bank had $187.5 million and $142.5 million of borrowing capacity available from the discount window facility at the FRB of San Francisco, respectively, collateralized by investment securities of $18.8 million and $24.8 million, and loans held for investment of $300.4 million and $227.0 million, respectively. As of both June 30, 2026 and 2025, the Bank also had a borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million. The Bank intends to request a renewal of its borrowing arrangement with the correspondent bank prior to maturity on March 31, 2027. As of both June 30, 2026 and 2025, there were no outstanding borrowings under the discount window facility or the federal funds facility.

Borrowings at June 30, 2026 and 2025 consisted of the following:


		June 30,
(In Thousands)		2026			2025

FHLB - San Francisco advances		$	157,000		$	213,000
Other borrowings on finance leases			46			73
Total borrowings		$	157,046		$	213,073

As a member of the FHLB – San Francisco, the Bank is required to maintain a minimum investment in FHLB – San Francisco capital stock. At both June 30, 2026 and 2025, the Bank held a stock investment of $9.6 million, with no excess FHLB – San Francisco capital stock held at either period end.

During both fiscal year 2026 and 2025, the Bank did not purchase any FHLB – San Francisco capital stock. In fiscal year 2026 and 2025, the FHLB – San Francisco distributed $1.1 million and $835,000 of cash dividends, respectively, to the Bank.

The following tables set forth certain information regarding borrowings by the Bank at the dates and for the years indicated:


		At or For the Year Ended June 30,
(Dollars in Thousands)		2026			2025

Balance outstanding at the end of year:
FHLB - San Francisco advances		$	157,000		$	213,000
Other borrowings on finance leases		$	46		$	73

Weighted average rate at the end of year:
FHLB - San Francisco advances			4.00	%		4.59	%
Other borrowings on finance leases			4.50	%		4.50	%

Maximum amount of borrowings outstanding at any month end:
FHLB - San Francisco advances		$	213,000		$	249,500
Other borrowings on finance leases		$	71		$	84

Average short-term borrowings during the year with respect to:⁽¹⁾
FHLB - San Francisco advances		$	115,605		$	121,888

Weighted average short-term borrowing rate during the year with respect to:⁽¹⁾
FHLB - San Francisco advances			4.47	%		4.56	%

(1)	Borrowings with a remaining term of 12 months or less.

The aggregate annual contractual maturities of borrowings at June 30, 2026 and 2025 were as follows:


		June 30,
(Dollars in Thousands)		2026			2025
Within one year⁽¹⁾		$	112,000		$	163,000
Over one to two years			35,046			35,000
Over two to three years			10,000			5,073
Over three to four years			—			10,000
Over four to five years			—			—
Over five years			—			—
Total borrowings		$	157,046		$	213,073
Weighted average interest rate			4.00	%		4.59	%

(1)	As of June 30, 2026, it includes a $5.0 million, 3.95% putable fixed-rate advance taken on June 22, 2026 with a two-year final maturity where the FHLB San Francisco has a one-time option on September 22, 2026 to terminate the advance.