v3.26.3
Fair Value Disclosures
 3 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Disclosures
8.
Fair Value Disclosures

The following disclosure is made in accordance with the requirements of ASC 825, Financial Instruments. Financial instruments are defined as cash and contractual rights and obligations that require settlement, directly or indirectly, in cash. In cases where quoted market prices are not available, fair values have been estimated using the present value of future cash flows or other valuation techniques. The results of these techniques are highly sensitive to the assumptions used, such as those concerning appropriate discount rates and estimates of future cash flows, which require considerable judgment. Accordingly, estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current settlement of the underlying financial instruments.

ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. These disclosures should not be interpreted as representing an aggregate measure of the underlying value of the Company.

The following methods and assumptions were used by the Company in estimating fair values of financial instruments:

Cash and Cash Equivalents
The carrying amount approximates the fair value of cash and cash equivalents.

Investment Securities
Fair values for investment securities, including mortgage-backed securities, are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. The carrying values of restricted or non-marketable equity securities approximate their fair values. The carrying amount of accrued investment income approximates its fair value.

Mortgage Loans Held-for-Sale
Because these loans are normally disposed of within ninety days of origination, their carrying value closely approximates the fair value of such loans.

Loans Receivable
For variable-rate loans that re-price frequently and with no significant changes in credit risk, fair value approximates the carrying value. Fair values for other loans are estimated using the discounted value of expected future cash flows. Interest rates used are those being offered currently for loans with similar terms to borrowers of similar credit quality. The carrying amount of accrued interest receivable approximates its fair value.

Other Real Estate Owned
Other real estate owned, which is obtained through the foreclosure process, is valued utilizing the appraised collateral value. Collateral values are estimated using level II inputs based on observable market data or Level III inputs based on customizing discounting criteria.

Deposit Liabilities
The fair values for demand deposit accounts are, by definition, equal to the amount payable on demand at the reporting date, that is, their carrying amounts. Fair values for other deposit accounts are estimated using the discounted value of expected future cash flows. The discount rate is estimated using the rates currently offered for deposits of similar maturities.

Advances from Federal Home Loan Bank and Other Borrowings
The carrying amount of short-term borrowings approximates their fair value. The fair value of long-term debt is estimated using discounted cash flow analyses based on current incremental borrowing rates for similar borrowing arrangements.
At September 30, 2026 and June 30, 2026, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

   
September 30, 2026
  
   
Carrying
    
Estimated
                    
   
Value
    
Fair Value
    
Level 1
    
Level 2
    
Level 3
  
   
(In Thousands)
  
Financial assets
                              
Cash and cash equivalents
  
$
37,560
    
$
37,560
    
$
37,560
    
$
-
    
$
-
  
Securities available-for-sale
    
45,499
      
45,499
      
-
      
45,499
      
-
  
Securities held-to-maturity
    
54,063
      
43,666
      
-
      
43,666
      
-
  
Other securities
    
1,111
      
1,111
      
-
      
-
      
1,111
  
Loans held-for-sale
    
1,082
      
1,082
      
-
      
1,082
      
-
  
Loans receivable, net
    
484,332
      
469,162
      
-
      
-
      
469,162
  
                                         
Financial liabilities
                                        
Deposits
    
574,923
      
573,847
      
-
      
573,847
      
-
  
Other borrowings
    
3,556
      
3,556
      
-
      
3,556
      
-
  

   
June 30, 2026
  
   
Carrying
    
Estimated
                    
   
Value
    
Fair Value
    
Level 1
    
Level 2
    
Level 3
  
   
(In Thousands)
  
Financial assets
                              
Cash and cash equivalents
  
$
34,304
    
$
34,304
    
$
34,304
    
$
-
    
$
-
  
Securities available-for-sale
    
43,624
      
43,624
      
-
      
43,624
      
-
  
Securities held-to-maturity
    
55,439
      
46,658
      
-
      
46,658
      
-
  
Other securities
    
954
      
954
      
-
      
-
      
954
  
Loans held-for-sale
    
1,654
      
1,654
      
-
      
1,654
      
-
  
Loans receivable, net
    
475,491
      
458,421
      
-
      
-
      
458,421
  
                                         
Financial liabilities
                                        
Deposits
    
577,292
      
575,788
      
-
      
575,788
      
-
  
Other borrowings
    
3,556
      
3,556
      
-
      
3,556
      
-
  
The Company follows the guidance of FASB ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 affirms a framework for measuring fair value and expands disclosures about fair value measurements.

ASC 820 was issued to establish a uniform definition of fair value. The definition of fair value is market-based as opposed to company-specific and includes the following:
 
  •
Defines fair value as the price that would be received to sell an asset or paid to transfer a liability, in either case, through an orderly transaction between market participants at a measurement date and establishes a framework for measuring fair value;
 

 •
Establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date;
 

 •
Nullifies the guidance in EITF 02-3, which required the deferral of profit at inception of a transaction involving a derivative financial instrument in the absence of observable data supporting the valuation technique;
 

 •
Eliminates large position discounts for financial instruments quoted in active markets and requires consideration of the company’s creditworthiness when valuing liabilities; and
 

 •
Expands disclosures about instruments that are measured at fair value.
 
The standard establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy favors the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:
 

 •
Level 1 – Fair value is based upon quoted prices unadjusted for identical assets or liabilities in active markets in which the Company can participate.
 

 •
Level 2 – Fair value is based upon (a) quoted prices for similar assets or liabilities in active markets; (b) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly; (c) inputs other than quoted prices that are observable for the asset or liability; or (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means.
 

 •
Level 3 – Fair value is based upon inputs that are unobservable for the asset or liability.  These inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).  These inputs are developed based on the best information available in the circumstances, which include the Company’s own data. The Company’s own data used to develop unobservable inputs are adjusted if information indicates that market participants would use different assumptions.
 
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The preceding methods described may produce a fair value calculation that may not be indicative of the net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the methodologies used during the three months ended September 30, 2026.
Fair values of assets and liabilities measured on a recurring basis at September 30, 2026 and June 30, 2026 are as follows:

   
Fair Value Measurements
  
September 30, 2026
  
(Level 1)
    
(Level 2)
    
(Level 3)
    
Total
  
   
(In Thousands)
  
Available-for-Sale
                        
Mortgage-backed securities: residential
  
$
-
    
$
45,050
    
$
-
    
$
45,050
  
State and political subdivision
    
-
      
449
      
-
      
449
  
Total available-for-sale
  
$
-
    
$
45,499
    
$
-
    
$
45,499
  

   
Fair Value Measurements
  
June 30, 2026
  
(Level 1)
    
(Level 2)
    
(Level 3)
    
Total
  
   
(In Thousands)
  
Available-for-Sale
                        
Mortgage-backed securities: residential
  
$
-
    
$
43,152
    
$
-
    
$
43,152
  
State and political subdivision
    
-
      
472
      
-
      
472
  
Total available-for-sale
  
$
-
    
$
43,624
    
$
-
    
$
43,624
  

Fair values of assets and liabilities measured on a non-recurring basis at September 30, 2026 and June 30, 2026 are as follows:

   
Fair Value Measurements
  
September 30, 2026
  
(Level 1)
    
(Level 2)
    
(Level 3)
    
Total
  
   
(In Thousands)
  
Assets:
                        
Impaired Loans
  
$
-
    
$
-
    
$
1,500
    
$
1,500
  
Other Real Estate Owned
    
-
      
-
      
513
      
513
  
Total
  
$
-
    
$
-
    
$
2,013
    
$
2,013
  

   
Fair Value Measurements
  
June 30, 2026
  
(Level 1)
    
(Level 2)
    
(Level 3)
    
Total
  
   
(In Thousands)
  
Assets:
                        
Impaired Loans
  
$
-
    
$
-
    
$
2,644
    
$
2,644
  
Other Real Estate Owned
    
-
      
-
      
613
      
613
  
Total
  
$
-
    
$
-
    
$
3,257
    
$
3,257