Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2022 | Jan. 31, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-28304 | |
Entity Registrant Name | PROVIDENT FINANCIAL HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 33-0704889 | |
Entity Address, Address Line One | 3756 Central Avenue | |
Entity Address, City or Town | Riverside | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92506 | |
City Area Code | 951 | |
Local Phone Number | 686-6060 | |
Title of 12(g) Security | Common stock, par value $0.01 per share | |
Trading Symbol | PROV | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,097,270 | |
Entity Central Index Key | 0001010470 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Assets | ||
Cash and cash equivalents | $ 24,840 | $ 23,414 |
Investment securities - held to maturity, at cost | 168,232 | 185,745 |
Investment securities - available for sale, at fair value | 2,377 | 2,676 |
Loans held for investment, net of allowance for loan losses $5,830 and $5,564, respectively; includes $1,345 and $1,396 of loans held at fair value, respectively | 1,040,337 | 939,992 |
Accrued interest receivable | 3,343 | 2,966 |
Federal Home Loan Bank ("FHLB") - San Francisco stock | 8,239 | 8,239 |
Premises and equipment, net | 8,911 | 8,826 |
Prepaid expenses and other assets | 14,763 | 15,180 |
Total assets | 1,271,042 | 1,187,038 |
Liabilities: | ||
Non interest-bearing deposits | 108,891 | 125,089 |
Interest-bearing deposits | 836,411 | 830,415 |
Total deposits | 945,302 | 955,504 |
Borrowings | 180,000 | 85,000 |
Accounts payable, accrued interest and other liabilities | 16,499 | 17,884 |
Total liabilities | 1,141,801 | 1,058,388 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value (2,000,000 shares authorized; none issued and outstanding) | ||
Common stock, $.01 par value; (40,000,000 and 40,000,000 shares authorized; 18,229,615 and 18,229,615 shares issued respectively; 7,132,270 and 7,285,184 outstanding, respectively) | 183 | 183 |
Additional paid-in capital | 98,732 | 98,826 |
Retained earnings | 205,117 | 202,680 |
Treasury stock at cost (11,097,345 and 10,944,431 shares, respectively) | (174,758) | (173,041) |
Accumulated other comprehensive income, net of tax | (33) | 2 |
Total stockholders' equity | 129,241 | 128,650 |
Total liabilities and stockholders' equity | $ 1,271,042 | $ 1,187,038 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Condensed Consolidated Statements of Financial Condition | ||
Allowance for loan losses on loans held for investment (in dollars) | $ 5,830 | $ 5,564 |
Loans held for investment fair value (in dollars) | $ 1,345 | $ 1,396 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 2,000,000 | 2,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized | 40,000,000 | 40,000,000 |
Common stock shares issued | 18,229,615 | 18,229,615 |
Common stock shares outstanding | 7,132,270 | 7,285,184 |
Treasury stock shares | 11,097,345 | 10,944,431 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income: | ||||
Loans receivable, net | $ 10,237 | $ 7,920 | $ 19,337 | $ 16,095 |
Investment securities | 548 | 433 | 1,084 | 851 |
FHLB - San Francisco stock | 145 | 123 | 268 | 245 |
Interest-earning deposits | 241 | 35 | 380 | 66 |
Total interest income | 11,171 | 8,511 | 21,069 | 17,257 |
Interest expense: | ||||
Checking and money market deposits | 61 | 58 | 121 | 115 |
Savings deposits | 44 | 45 | 88 | 86 |
Time deposits | 370 | 199 | 583 | 414 |
Borrowings | 1,311 | 546 | 1,927 | 1,091 |
Total interest expense | 1,786 | 848 | 2,719 | 1,706 |
Net interest income | 9,385 | 7,663 | 18,350 | 15,551 |
Provision (recovery) for loan losses | 191 | (1,067) | 261 | (1,406) |
Net interest income, after provision (recovery) for loan losses | 9,194 | 8,730 | 18,089 | 16,957 |
Non-interest income: | ||||
Loan servicing and other fees | 115 | 444 | 223 | 630 |
Other | 147 | 200 | 318 | 366 |
Total non-interest income | 956 | 1,368 | 1,959 | 2,437 |
Non-interest expense: | ||||
Salaries and employee benefits | 4,384 | 4,455 | 8,523 | 7,575 |
Premises and occupancy | 796 | 758 | 1,657 | 1,663 |
Equipment expense | 258 | 314 | 569 | 602 |
Professional expense | 310 | 348 | 902 | 809 |
Sales and marketing expense | 175 | 149 | 322 | 291 |
Deposit insurance premium and regulatory assessments | 139 | 136 | 274 | 273 |
Other | 736 | 739 | 1,492 | 1,354 |
Total non-interest expense | 6,798 | 6,899 | 13,739 | 12,567 |
Income before income taxes | 3,352 | 3,199 | 6,309 | 6,827 |
Provision for income taxes | 981 | 935 | 1,848 | 1,896 |
Net income | $ 2,371 | $ 2,264 | $ 4,461 | $ 4,931 |
Basic earnings per share | $ 0.33 | $ 0.30 | $ 0.62 | $ 0.66 |
Diluted earnings per share | $ 0.33 | $ 0.30 | $ 0.61 | $ 0.65 |
Deposit account fees | ||||
Non-interest income: | ||||
Total non-interest income | $ 327 | $ 325 | $ 670 | $ 637 |
Card and processing fees | ||||
Non-interest income: | ||||
Total non-interest income | $ 367 | $ 399 | $ 748 | $ 804 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net income | $ 2,371 | $ 2,264 | $ 4,461 | $ 4,931 |
Change in unrealized holding losses on securities available for sale and interest-only strips | (23) | (11) | (50) | (20) |
Other comprehensive loss, before income tax benefit | (23) | (11) | (50) | (20) |
Income tax benefit | (7) | (3) | (15) | (6) |
Other comprehensive loss | (16) | (8) | (35) | (14) |
Total comprehensive income | $ 2,355 | $ 2,256 | $ 4,426 | $ 4,917 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss), Net of Tax. | Total | |
Balance at Jun. 30, 2021 | $ 183 | $ 97,978 | $ 197,733 | $ (168,686) | $ 72 | $ 127,280 | |
Balance (in shares) at Jun. 30, 2021 | 7,541,469 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 4,931 | 4,931 | |||||
Other comprehensive loss | (14) | (14) | |||||
Purchase of treasury stock | (2,585) | (2,585) | |||||
Purchase of treasury stock (in shares) | (152,526) | ||||||
Distribution of restricted stock (in shares) | 1,000 | ||||||
Awards of restricted stock | (9) | 9 | |||||
Forfeiture of restricted stock | 18 | (18) | |||||
Amortization of restricted stock | 393 | 393 | |||||
Stock options expense | 24 | 24 | |||||
Cash dividends | [1] | (2,095) | (2,095) | ||||
Balance at Dec. 31, 2021 | $ 183 | 98,404 | 200,569 | (171,280) | 58 | 127,934 | |
Balance (in shares) at Dec. 31, 2021 | 7,389,943 | ||||||
Balance at Sep. 30, 2021 | $ 183 | 98,179 | 199,344 | (169,537) | 66 | 128,235 | |
Balance (in shares) at Sep. 30, 2021 | 7,491,705 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,264 | 2,264 | |||||
Other comprehensive loss | (8) | (8) | |||||
Purchase of treasury stock | (1,734) | (1,734) | |||||
Purchase of treasury stock (in shares) | (102,762) | ||||||
Distribution of restricted stock (in shares) | 1,000 | ||||||
Awards of restricted stock | (9) | 9 | |||||
Forfeiture of restricted stock | 18 | (18) | |||||
Amortization of restricted stock | 204 | 204 | |||||
Stock options expense | 12 | 12 | |||||
Cash dividends | [2] | (1,039) | (1,039) | ||||
Balance at Dec. 31, 2021 | $ 183 | 98,404 | 200,569 | (171,280) | 58 | 127,934 | |
Balance (in shares) at Dec. 31, 2021 | 7,389,943 | ||||||
Balance at Jun. 30, 2022 | $ 183 | 98,826 | 202,680 | (173,041) | 2 | $ 128,650 | |
Balance (in shares) at Jun. 30, 2022 | 7,285,184 | 7,285,184 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 4,461 | $ 4,461 | |||||
Other comprehensive loss | (35) | (35) | |||||
Purchase of treasury stock | (2,196) | (2,196) | |||||
Purchase of treasury stock (in shares) | (152,914) | ||||||
Awards of restricted stock | (479) | 479 | |||||
Amortization of restricted stock | 408 | 408 | |||||
Stock options expense | 31 | 31 | |||||
Tax effect from stock based compensation | (54) | (54) | |||||
Cash dividends | [3] | (2,024) | (2,024) | ||||
Balance at Dec. 31, 2022 | $ 183 | 98,732 | 205,117 | (174,758) | (33) | $ 129,241 | |
Balance (in shares) at Dec. 31, 2022 | 7,132,270 | 7,132,270 | |||||
Balance at Sep. 30, 2022 | $ 183 | 98,559 | 203,750 | (173,286) | (17) | $ 129,189 | |
Balance (in shares) at Sep. 30, 2022 | 7,235,560 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,371 | 2,371 | |||||
Other comprehensive loss | (16) | (16) | |||||
Purchase of treasury stock | (1,472) | (1,472) | |||||
Purchase of treasury stock (in shares) | (103,290) | ||||||
Amortization of restricted stock | 211 | 211 | |||||
Stock options expense | 16 | 16 | |||||
Tax effect from stock based compensation | (54) | (54) | |||||
Cash dividends | [4] | (1,004) | (1,004) | ||||
Balance at Dec. 31, 2022 | $ 183 | $ 98,732 | $ 205,117 | $ (174,758) | $ (33) | $ 129,241 | |
Balance (in shares) at Dec. 31, 2022 | 7,132,270 | 7,132,270 | |||||
[1]Cash dividends of $0.28 per share were paid in the six months ended December 31, 2021.[2] Cash dividends of $0.14 per share were paid in the quarter ended December 31, 2021. Cash dividends of $0.14 per share were paid in the quarter ended December 31, 2022. |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Consolidated Statements of Stockholders' Equity | ||||
Cash dividends per share | $ 0.14 | $ 0.14 | $ 0.28 | $ 0.28 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 4,461 | $ 4,931 |
Adjustments to reconcile net income to net cash provided by operating activities : | ||
Depreciation and amortization | 1,636 | 2,818 |
Provision (recovery) for loan losses | 261 | (1,406) |
Stock-based compensation | 439 | 417 |
Provision for deferred income taxes | 671 | 486 |
(Decrease) increase in accounts payable, accrued interest and other liabilities | (1,458) | 743 |
Increase in prepaid expenses and other assets | (798) | (2,304) |
Net cash provided by operating activities | 5,212 | 5,685 |
Cash flows from investing activities: | ||
Net increase in loans held for investment | (101,105) | (703) |
Purchase of investment securities - held to maturity | 0 | (15,204) |
Maturity of investment securities - held to maturity | 400 | 400 |
Principal payments from investment securities - held to maturity | 16,671 | 32,093 |
Principal payments from investment securities - available for sale | 249 | 450 |
Purchase of premises and equipment | (579) | (23) |
Net cash (used for) provided by investing activities | (84,364) | 17,013 |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (10,202) | 18,375 |
Repayments of long-term borrowings | (20,000) | (20,983) |
Proceeds from short-term borrowings, net | 115,000 | 0 |
Treasury stock purchases | (2,196) | (2,585) |
Cash dividends | (2,024) | (2,095) |
Net cash provided by (used for) financing activities | 80,578 | (7,288) |
Net increase in cash and cash equivalents | 1,426 | 15,410 |
Cash and cash equivalents at beginning of period | 23,414 | 70,270 |
Cash and cash equivalents at end of period | 24,840 | 85,680 |
Supplemental information: | ||
Cash paid for interest | 2,035 | 1,758 |
Cash paid for income taxes | $ 1,650 | $ 1,625 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Dec. 31, 2022 | |
Basis of Presentation | |
Basis of Presentation | Note 1: Basis of Presentation The unaudited interim condensed consolidated financial statements included herein reflect all adjustments which are, in the opinion of management, necessary to present a fair statement of the results of operations for the interim periods presented. All such adjustments are of a normal, recurring nature. The condensed consolidated statement of financial condition at June 30, 2022 is derived from the audited consolidated financial statements of Provident Financial Holdings, Inc. and its wholly-owned subsidiary, Provident Savings Bank, F.S.B. (the "Bank") (collectively, the "Corporation"). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") with respect to interim financial reporting. It is recommended that these unaudited interim condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended June 30, 2022 (“2022 Annual Form 10-K”). The results of operations for the quarter and six months ended December 31, 2022 are not necessarily indicative of results that may be expected for the entire fiscal year ending June 30, 2023. |
Accounting Standard Updates ("A
Accounting Standard Updates ("ASU") | 6 Months Ended |
Dec. 31, 2022 | |
Accounting Standard Updates ("ASU") | |
Accounting Standard Updates ("ASU") | Note 2: Accounting Standard Updates (“ASU”) There have been no accounting standard updates or changes in the status of their adoption that are material to the Corporation as previously disclosed in Note 1 of the Corporation's 2022 Annual Form 10-K, except the following: ASU 2020-04: In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of reference Rate Reform on Financial Reporting. This ASU applies to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or other rate references expected to be discontinued because of reference rate reform. The ASU permits an entity to make necessary modifications to eligible contracts or transactions without requiring contract re-measurement or reassessment of a previous accounting determination. In January 2021, ASU 2021-01 clarified that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the changes in the interest rates used for margining, discounting, or contract price alignment for derivative instruments that are being implemented as part of the market-wide transition to new reference rates (commonly referred to as the “discounting transition”). In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848. The FASB had originally included a sunset provision within Topic 848 based on expectations of when the LIBOR would cease being published. In March 2021, it was announced that the intended cessation date of LIBOR would be extended to June 30, 2023. As a result, the FASB issued ASU 2022-06 deferring the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. This ASU is effective for all entities as of March 12, 2020 through December 31, 2024. The Corporation is in the process of compiling data on the impact of reference rate reform and has not determined the impact of the adoption of this ASU on its consolidated financial statements. ASU 2016-13: In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendments to the initial guidance in November 2018, ASU No. 2018-19, April 2019, ASU 2019-04, May 2019, ASU 2019-05, November 2019, ASU 2019-11, February 2020, ASU 2020-02, March 2020, ASU 2020-03 and March 2022, ASU 2022-02, all of which clarifies codification and corrects unintended application of the guidance. In November 2019, the FASB also issued ASU 2019-10, “Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates” extending the adoption date for certain registrants, including the Corporation. These ASUs related to Topic 326 will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Corporation is evaluating its current expected loss methodology of its loans held for investment and investment securities held to maturity to identify the necessary modifications in accordance with these standards and expects a change in the processes and procedures to calculate the allowance for credit losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The Corporation has established a project team and implementation plan to address the key components to this process. The Corporation has determined its loan segmentation and compiled historical data, which is currently under evaluation. The Corporation is preparing to evaluate the appropriate methodologies for each loan grouping and is beginning testing, parallel runs, and sensitivity analysis on its initial modeling assumptions and results prior to the adoption date of July 1, 2023. The Corporation anticipates the allowance for credit losses for loans held for investment to change through a one-time adjustment to retained earnings and is still evaluating the potential impact upon adoption that these ASUs will have on the Corporation’s Consolidated Financial Statements; however, until the evaluation is complete the magnitude of the potential change will be unknown. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share | |
Earnings Per Share | Note 3: Earnings Per Share Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the earnings of the Corporation. As of December 31, 2022 and 2021, there were outstanding options to purchase 434,500 shares and 431,000 shares of the Corporation’s common stock, respectively. Of those shares, as of December 31, 2022 and 2021, there were 434,000 shares and 130,000 shares, respectively, that were excluded from the diluted EPS computation as their effect was anti-dilutive. As of December 31, 2022 and 2021, there were outstanding restricted stock awards of 147,750 shares and 99,250 shares, respectively. The following table provides the basic and diluted EPS computations for the quarters and six months ended December 31, 2022 and 2021, respectively. For the Quarter Ended For the Six Months Ended December 31, December 31, (In Thousands, Except Earnings Per Share) 2022 2021 2022 2021 Numerator: Net income – numerator for basic earnings per share and diluted earnings per share - available to common stockholders $ 2,371 $ 2,264 $ 4,461 $ 4,931 Denominator: Denominator for basic earnings per share: Weighted-average shares 7,185 7,435 7,229 7,483 Effect of dilutive shares: Stock options — 37 — 39 Restricted stock 52 11 44 7 Denominator for diluted earnings per share: Adjusted weighted-average shares and assumed conversions 7,237 7,483 7,273 7,529 Basic earnings per share $ 0.33 $ 0.30 $ 0.62 $ 0.66 Diluted earnings per share $ 0.33 $ 0.30 $ 0.61 $ 0.65 |
Investment Securities
Investment Securities | 6 Months Ended |
Dec. 31, 2022 | |
Investment Securities | |
Investment Securities | Note 4: Investment Securities The amortized cost and estimated fair value of investment securities as of December 31, 2022 and June 30, 2022 were as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair Carrying December 31, 2022 Cost Gains (Losses) Value Value (In Thousands) Held to maturity U.S. government sponsored enterprise MBS (1) $ 163,612 $ — $ (19,500) $ 144,112 $ 163,612 U.S. government sponsored enterprise CMO (2) 3,907 — (313) 3,594 3,907 U.S. SBA securities (3) 713 — — 713 713 Total investment securities - held to maturity 168,232 — (19,813) 148,419 168,232 Available for sale U.S. government agency MBS 1,569 — (36) 1,533 1,533 U.S. government sponsored enterprise MBS 754 — (12) 742 742 Private issue CMO 110 — (8) 102 102 Total investment securities - available for sale 2,433 — (56) 2,377 2,377 Total investment securities $ 170,665 $ — $ (19,869) $ 150,796 $ 170,609 (1) (2) (3) Gross Gross Estimated Amortized Unrealized Unrealized Fair Carrying June 30, 2022 Cost Gains (Losses) Value Value (In Thousands) Held to maturity U.S. government sponsored enterprise MBS $ 180,492 $ 63 $ (13,945) $ 166,610 $ 180,492 U.S. government sponsored enterprise CMO 3,913 — (150) 3,763 3,913 U.S. SBA securities 940 11 — 951 940 Certificate of deposits 400 — — 400 400 Total investment securities - held to maturity 185,745 74 (14,095) 171,724 185,745 Available for sale U.S. government agency MBS 1,698 6 (6) 1,698 1,698 U.S. government sponsored enterprise MBS 865 4 (4) 865 865 Private issue CMO 118 — (5) 113 113 Total investment securities - available for sale 2,681 10 (15) 2,676 2,676 Total investment securities $ 188,426 $ 84 $ (14,110) $ 174,400 $ 188,421 In the second quarters of fiscal 2023 and 2022, the Corporation received MBS principal payments of $7.6 million and $15.5 million, respectively, and there were no sales of investment securities during these periods. The Corporation did not purchase any investment securities in the second quarter of fiscal 2023; while in the second quarter of fiscal 2022, the Corporation purchased $15.0 million of U.S. government sponsored enterprise MBS to be held to maturity. For the first six months of fiscal 2023 and 2022, the Corporation received MBS principal payments of $16.9 million and $32.5 million, respectively, and there were no sales of investment securities during these periods. The Corporation did not purchase any investment securities in the first six months of fiscal 2023, while in the first six months of fiscal 2022, the Corporation purchased $15.0 million of U.S. government sponsored enterprise MBS to be held to maturity. The Corporation held investments with an unrealized loss position of $19.9 million at December 31, 2022 and $14.1 million at June 30, 2022. As of December 31, 2022 Unrealized Holding Losses Unrealized Holding Losses Unrealized Holding Losses (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses Held to maturity U.S. government sponsored enterprise MBS $ 15,934 $ 369 $ 128,178 $ 19,131 $ 144,112 $ 19,500 U.S. government sponsored enterprise CMO 3,594 313 — — 3,594 313 Total investment securities - held to maturity 19,528 682 128,178 19,131 147,706 19,813 Available for sale U.S government agency MBS 1,533 36 — — 1,533 36 U.S. government sponsored enterprise MBS 669 11 22 1 691 12 Private issue CMO 102 8 — — 102 8 Total investment securities - available for sale 2,304 55 22 1 2,326 56 Total investment securities $ 21,832 $ 737 128,200 $ 19,132 $ 150,032 $ 19,869 As of June 30, 2022 Unrealized Holding Losses Unrealized Holding Losses Unrealized Holding Losses (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses Held to maturity U.S. government sponsored enterprise MBS $ 121,844 $ 9,018 $ 35,528 $ 4,927 $ 157,372 $ 13,945 U.S. government sponsored enterprise CMO 3,764 150 — — 3,764 150 Total investment securities - held to maturity 125,608 9,168 35,528 4,927 161,136 14,095 Available for sale U.S government agency MBS 826 6 — — 826 6 U.S. government sponsored enterprise MBS 671 4 — — 671 4 Private issue CMO 113 5 — — 113 5 Total investment securities - available for sale 1,610 15 — — 1,610 15 Total investment securities $ 127,218 $ 9,183 $ 35,528 $ 4,927 $ 162,746 $ 14,110 The Corporation evaluates individual investment securities quarterly for other-than-temporary impairment in market value. At December 31, 2022, $19.1 million of the $19.9 million of unrealized holding losses were 12 months or more; while at June 30, 2022, $4.9 million of the $14.1 million of unrealized holding losses were 12 months or more. The unrealized losses on investment securities were attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. At December 31, 2022 and 2021, the Corporation did not hold any investment securities with the intent to sell and determined it was more likely than not that the Corporation would not be required to sell the securities prior to recovery of the amortized cost basis; therefore, n/o impairment losses were recorded for the quarters and six months ended December 31, 2022 and 2021. Contractual maturities of investment securities as of December 31, 2022 and June 30, 2022 were as follows: December 31, 2022 June 30, 2022 Estimated Estimated Amortized Fair Amortized Fair (In Thousands) Cost Value Cost Value Held to maturity Due in one year or less $ 1,209 $ 1,198 $ 1,427 $ 1,425 Due after one through five years 7,405 7,129 10,908 10,805 Due after five through ten years 69,583 62,622 77,167 72,625 Due after ten years 90,035 77,470 96,243 86,869 Total investment securities - held to maturity 168,232 148,419 185,745 171,724 Available for sale Due in one year or less — — — — Due after one through five years — — — — Due after five through ten years 233 229 98 98 Due after ten years 2,200 2,148 2,583 2,578 Total investment securities - available for sale 2,433 2,377 2,681 2,676 Total investment securities $ 170,665 $ 150,796 $ 188,426 $ 174,400 |
Loans Held for Investment
Loans Held for Investment | 6 Months Ended |
Dec. 31, 2022 | |
Loans Held for Investment | |
Loans Held for Investment | Note 5: Loans Held for Investment Loans held for investment, net of fair value adjustments, consisted of the following: December 31, June 30, (In Thousands) 2022 2022 Mortgage loans: Single-family $ 479,730 $ 378,234 Multi-family 465,350 464,676 Commercial real estate 88,200 90,429 Construction 2,388 3,216 Other 112 123 Commercial business loans 1,358 1,206 Consumer loans 75 86 Total loans held for investment, gross 1,037,213 937,970 Advance payments of escrows 176 47 Deferred loan costs, net 8,778 7,539 Allowance for loan losses (5,830) (5,564) Total loans held for investment, net $ 1,040,337 $ 939,992 The following table sets forth information at December 31, 2022 regarding the dollar amount of loans held for investment that are contractually repricing during the periods indicated, segregated between adjustable rate loans and fixed rate loans. Fixed-rate loans comprised 11 percent of loans held for investment at both December 31, 2022 and June 30, 2022. Adjustable rate loans having no stated repricing dates that reprice when the index they are tied to reprices (e.g. prime rate index) and checking account overdrafts are reported as repricing within one year. The table does not include any estimate of prepayments which may cause the Corporation’s actual repricing experience to differ materially from that shown. Adjustable Rate After After After Within One Year 3 Years 5 Years (In Thousands) One Year Through 3 Years Through 5 Years Through 10 Years Fixed Rate Total Mortgage loans: Single-family $ 50,448 $ 21,760 $ 45,263 $ 252,713 $ 109,546 $ 479,730 Multi-family 134,058 131,757 148,714 50,672 149 465,350 Commercial real estate 40,491 16,720 29,679 — 1,310 88,200 Construction 494 174 — — 1,720 2,388 Other — — — — 112 112 Commercial business loans 1,291 — — — 67 1,358 Consumer loans 75 — — — — 75 Total loans held for investment, gross $ 226,857 $ 170,411 $ 223,656 $ 303,385 $ 112,904 $ 1,037,213 The Corporation has developed an internal loan grading system to evaluate and quantify the Bank’s loans held for investment portfolio with respect to quality and risk. Management continually evaluates the credit quality of the Corporation’s loan portfolio and conducts a quarterly review of the adequacy of the allowance for loan losses using quantitative and qualitative methods. The Corporation has adopted an internal risk rating policy in which each loan is rated for credit quality with a rating of pass, special mention, substandard, doubtful or loss. The two primary components that are used during the loan review process to determine the proper allowance levels are individually evaluated allowances and collectively evaluated allowances. Quantitative loan loss factors are developed by determining the historical loss experience, expected future cash flows, discount rates and collateral fair values, among others. Qualitative loan loss factors are developed by assessing general economic indicators such as gross domestic product, retail sales, unemployment rates, employment growth, California home sales and median California home prices. The Corporation assigns individual factors for the quantitative and qualitative methods for each loan category and each internal risk rating. The Corporation categorizes all of the loans held for investment into risk categories based on relevant information about the ability of the borrower to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. A description of the general characteristics of the risk grades is as follows: ● Pass - These loans range from minimal credit risk to average, but still acceptable, credit risk. The likelihood of loss is considered remote. ● Special Mention - A special mention loan has potential weaknesses that may be temporary or, if left uncorrected, may result in a loss. While concerns exist, the bank is currently protected and loss is considered unlikely and not imminent. ● Substandard - A substandard loan is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. ● Doubtful - A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. ● Loss - A loss loan is considered uncollectible and of such little value that continuance as an asset of the institution is not warranted. The following tables summarize gross loans held for investment, net of fair value adjustments, by loan types and risk category at the dates indicated: December 31, 2022 Commercial Other Commercial (In Thousands) Single-family Multi-family Real Estate Construction Mortgage Business Consumer Total Pass $ 478,691 $ 464,836 $ 87,648 $ 2,388 $ 112 $ 1,358 $ 75 $ 1,035,108 Special Mention — 514 — — — — — 514 Substandard 1,039 — 552 — — — — 1,591 Total loans held for investment, gross $ 479,730 $ 465,350 $ 88,200 $ 2,388 $ 112 $ 1,358 $ 75 $ 1,037,213 June 30, 2022 Commercial Other Commercial (In Thousands) Single-family Multi-family Real Estate Construction Mortgage Business Consumer Total Pass $ 376,502 $ 464,676 $ 90,429 $ 3,216 $ 123 $ 1,206 $ 86 $ 936,238 Special Mention 224 — — — — — — 224 Substandard 1,508 — — — — — — 1,508 Total loans held for investment, gross $ 378,234 $ 464,676 $ 90,429 $ 3,216 $ 123 $ 1,206 $ 86 $ 937,970 The allowance for loan losses is maintained at a level sufficient to provide for estimated losses based on evaluating known and inherent risks in the loans held for investment and upon management’s continuing analysis of the factors underlying the quality of the loans held for investment. These factors include changes in the size and composition of the loans held for investment, actual loan loss experience, current economic conditions, detailed analysis of individual loans for which full collectability may not be assured, and determination of the realizable value of the collateral securing the loans. The provision (recovery) for (from) the allowance for loan losses is charged (credited) against operations on a quarterly basis, as necessary, to maintain the allowance at appropriate levels. Although management believes it uses the best information available to make such determinations, there can be no assurance that regulators, in reviewing the Corporation’s loans held for investment, will not request a significant increase in its allowance for loan losses. Future adjustments to the allowance for loan losses may be necessary and results of operations could be significantly and adversely affected as a result of economic, operating, regulatory, and other conditions beyond the Corporation’s control. Non-performing loans are charged-off to their fair market values in the period the loans, or portion thereof, are deemed uncollectible, generally after the loan becomes 150 days delinquent for real estate secured first trust deed loans and 120 days delinquent for commercial business or real estate secured second trust deed loans. For loans that were modified from their original terms, were re-underwritten and identified in the Corporation’s asset quality reports as troubled debt restructurings (“restructured loans”), the charge-off occurs when the loan becomes 90 days delinquent; and where borrowers file bankruptcy, the charge-off occurs when the loan becomes 60 days delinquent. The amount of the charge-off is determined by comparing the loan balance to the estimated fair value of the underlying collateral, less disposition costs, with the loan balance in excess of the estimated fair value charged-off against the allowance for loan losses. The allowance for loan losses for non-performing loans is determined by applying ASC 310, “Receivables.” For restructured loans that are less than 90 days delinquent, the allowance for loan losses are segregated into (a) individually evaluated allowances for those loans with applicable discounted cash flow calculations still in their restructuring period, classified lower than pass, and containing an embedded loss component or (b) collectively evaluated allowances based on the aggregated pooling method. For non-performing loans less than 60 days delinquent where the borrower has filed bankruptcy, the collectively evaluated allowances are assigned based on the aggregated pooling method. For non-performing commercial real estate loans, an individually evaluated allowance is derived based on the loan's discounted cash flow fair value (for restructured loans) or collateral fair value less estimated selling costs and if the fair value is higher than the loan balance, no allowance is required. The following table is provided to disclose additional details for the periods indicated on the Corporation’s allowance for loan losses: For the Quarter Ended For the Six Months Ended December 31, December 31, (Dollars in Thousands) 2022 2021 2022 2021 Allowance at beginning of period $ 5,638 $ 7,413 $ 5,564 $ 7,587 Provision (recovery) for loan losses 191 (1,067) 261 (1,406) Recoveries: Mortgage loans: Single-family 1 262 5 427 Total recoveries 1 262 5 427 Total charge-offs — — — — Net recoveries (charge-offs) 1 262 5 427 Balance at end of period $ 5,830 $ 6,608 $ 5,830 $ 6,608 Allowance for loan losses as a percentage of gross loans held for investment at the end of the period 0.56 % 0.77 % 0.56 % 0.77 % Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period (annualized) (0.00) % (0.12) % (0.00) % (0.10) % Allowance for loan losses as a percentage of gross non-performing loans at the end of the period 561.12 % 196.20 % 561.12 % 196.20 % The following tables denote the past due status of the Corporation's gross loans held for investment, net of fair value adjustments, at the dates indicated. December 31, 2022 30-89 Days Past Total Loans Held for (In Thousands) Current Due Non-Accrual (1) Investment, Gross Mortgage loans: Single-family $ 478,691 $ — $ 1,039 $ 479,730 Multi-family 465,350 — — 465,350 Commercial real estate 88,200 — — 88,200 Construction 2,388 — — 2,388 Other 112 — — 112 Commercial business loans 1,358 — — 1,358 Consumer loans 71 4 — 75 Total loans held for investment, gross $ 1,036,170 $ 4 $ 1,039 $ 1,037,213 (1) All loans 90 days or greater past due are placed on non-accrual status. June 30, 2022 30-89 Days Past Total Loans Held for (In Thousands) Current Due Non-Accrual (1) Investment, Gross Mortgage loans: Single-family $ 376,726 $ — $ 1,508 $ 378,234 Multi-family 464,676 — — 464,676 Commercial real estate 90,429 — — 90,429 Construction 3,216 — — 3,216 Other 123 — — 123 Commercial business loans 1,206 — — 1,206 Consumer loans 83 3 — 86 Total loans held for investment, gross $ 936,459 $ 3 $ 1,508 $ 937,970 (1) All loans 90 days or greater past due are placed on non-accrual status. The following tables summarize the Corporation’s allowance for loan losses and recorded investment in gross loans, by portfolio type, at the dates and for the periods indicated. Quarter Ended December 31, 2022 Single- Multi- Commercial Commercial (In Thousands) family family Real Estate Construction Other Business Consumer Total Allowance for loan losses: Allowance at beginning of period $ 1,450 $ 3,305 $ 806 $ 22 $ 3 $ 48 $ 4 $ 5,638 Provision (recovery) for loan losses 149 (5) 41 (5) — 10 1 191 Recoveries 1 — — — — — — 1 Charge-offs — — — — — — — — Allowance for loan losses, end of period $ 1,600 $ 3,300 $ 847 $ 17 $ 3 $ 58 $ 5 $ 5,830 Allowance for loan losses: Individually evaluated for impairment $ 38 $ — $ — $ — $ — $ — $ — $ 38 Collectively evaluated for impairment 1,562 3,300 847 17 3 58 5 5,792 Allowance for loan losses, end of period $ 1,600 $ 3,300 $ 847 $ 17 $ 3 $ 58 $ 5 $ 5,830 Loans held for investment: Individually evaluated for impairment $ 810 $ — $ — $ — $ — $ — $ — $ 810 Collectively evaluated for impairment 478,920 465,350 88,200 2,388 112 1,358 75 1,036,403 Total loans held for investment, gross $ 479,730 $ 465,350 $ 88,200 $ 2,388 $ 112 $ 1,358 $ 75 $ 1,037,213 Allowance for loan losses as a percentage of gross loans held for investment 0.33 % 0.71 % 0.96 % 0.71 % 2.68 % 4.27 % 6.67 % 0.56 % Net (recoveries) charge-offs to average loans receivable, net during the period (0.00) % — % — % — % — % — % — % (0.00) % Quarter Ended December 31, 2021 Single- Multi- Commercial Commercial (In Thousands) family family Real Estate Construction Other Business Consumer Total Allowance for loan losses: Allowance at beginning of period $ 1,827 $ 4,525 $ 967 $ 49 $ 3 $ 37 $ 5 $ 7,413 (Recovery) provision for loan losses (693) (306) (52) 6 — (22) — (1,067) Recoveries 262 — — — — — — 262 Charge-offs — — — — — — — — Allowance for loan losses, end of period $ 1,396 $ 4,219 $ 915 $ 55 $ 3 $ 15 $ 5 $ 6,608 Allowance for loan losses: Individually evaluated for impairment $ 52 $ — $ — $ — $ — $ — $ — $ 52 Collectively evaluated for impairment 1,344 4,219 915 55 3 15 5 6,556 Allowance for loan losses, end of period $ 1,396 $ 4,219 $ 915 $ 55 $ 3 $ 15 $ 5 $ 6,608 Loans held for investment: Individually evaluated for impairment $ 1,583 $ — $ — $ — $ — $ — $ — $ 1,583 Collectively evaluated for impairment 288,662 466,467 91,236 3,501 134 362 78 850,440 Total loans held for investment, gross $ 290,245 $ 466,467 $ 91,236 $ 3,501 $ 134 $ 362 $ 78 $ 852,023 Allowance for loan losses as a percentage of gross loans held for investment 0.48 % 0.90 % 1.00 % 1.57 % 2.24 % 4.14 % 6.41 % 0.77 % Net (recoveries) charge-offs to average loans receivable, net during the period (0.37) % — % — % — % — % — % — % (0.12) % Six Months Ended December 31, 2022 Commercial Commercial (In Thousands) Single-family Multi-family Real Estate Construction Other Business Consumer Total Allowance for loan losses: Allowance at beginning of period $ 1,383 $ 3,282 $ 816 $ 23 $ 3 $ 52 $ 5 $ 5,564 Provision (recovery) for loan losses 212 18 31 (6) — 6 — 261 Recoveries 5 — — — — — — 5 Charge-offs — — — — — — — — Allowance for loan losses, end of period $ 1,600 $ 3,300 $ 847 $ 17 $ 3 $ 58 $ 5 $ 5,830 Allowance for loan losses: Individually evaluated for impairment $ 38 $ — $ — $ — $ — $ — $ — $ 38 Collectively evaluated for impairment 1,562 3,300 847 17 3 58 5 5,792 Allowance for loan losses, end of period $ 1,600 $ 3,300 $ 847 $ 17 $ 3 $ 58 $ 5 $ 5,830 Loans held for investment: Individually evaluated for impairment $ 810 $ — $ — $ — $ — $ — $ — $ 810 Collectively evaluated for impairment 478,920 465,350 88,200 2,388 112 1,358 75 1,036,403 Total loans held for investment, gross $ 479,730 $ 465,350 $ 88,200 $ 2,388 $ 112 $ 1,358 $ 75 $ 1,037,213 Allowance for loan losses as a percentage of gross loans held for investment 0.33 % 0.71 % 0.96 % 0.71 % 2.68 % 4.27 % 6.67 % 0.56 % Net (recoveries) charge-offs to average loans receivable, net during the period (0.00) % — % — % — % — % — % — % (0.00) % Six Months Ended December 31, 2021 Commercial Commercial (In Thousands) Single-family Multi-family Real Estate Construction Other Business Consumer Total Allowance for loan losses: Allowance at beginning of period $ 2,000 $ 4,485 $ 1,006 $ 51 $ 3 $ 36 $ 6 $ 7,587 (Recovery) provision for loan losses (1,031) (266) (91) 4 — (21) (1) (1,406) Recoveries 427 — — — — — — 427 Charge-offs — — — — — — — — Allowance for loan losses, end of period $ 1,396 $ 4,219 $ 915 $ 55 $ 3 $ 15 $ 5 $ 6,608 Allowance for loan losses: Individually evaluated for impairment $ 52 $ — $ — $ — $ — $ — $ — $ 52 Collectively evaluated for impairment 1,344 4,219 915 55 3 15 5 6,556 Allowance for loan losses, end of period $ 1,396 $ 4,219 $ 915 $ 55 $ 3 $ 15 $ 5 $ 6,608 Loans held for investment: Individually evaluated for impairment $ 1,583 $ — $ — $ — $ — $ — $ — $ 1,583 Collectively evaluated for impairment 288,662 466,467 91,236 3,501 134 362 78 850,440 Total loans held for investment, gross $ 290,245 $ 466,467 $ 91,236 $ 3,501 $ 134 $ 362 $ 78 $ 852,023 Allowance for loan losses as a percentage of gross loans held for investment 0.48 % 0.90 % 1.00 % 1.57 % 2.24 % 4.14 % 6.41 % 0.77 % Net (recoveries) charge-offs to average loans receivable, net during the period (0.31) % — % — % — % — % — % — % (0.10) % The following tables identify the Corporation’s total recorded investment in non-performing loans by type at the dates and for the periods indicated. Generally, a loan is placed on non-accrual status when it becomes 90 days past due as to principal or interest or if the loan is deemed impaired, after considering economic and business conditions and collection efforts, where the borrower’s financial condition is such that collection of the contractual principal or interest on the loan is doubtful. In addition, interest income is not recognized on any loan where management has determined that collection is not reasonably assured. A non-performing loan may be restored to accrual status when delinquent principal and interest payments are brought current, the borrower(s) has demonstrated sustained payment performance and future monthly principal and interest payments are expected to be collected on a timely basis. Loans with a related allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell, to establish realizable value. This analysis may identify a specific impairment amount needed or may conclude that no reserve is needed. Loans that are not individually evaluated for impairment are included in pools of homogeneous loans for evaluation of related allowance reserves. At December 31, 2022 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 981 $ — $ 981 $ (83) $ 898 Without a related allowance (2) 86 (28) 58 — 58 Total single-family loans 1,067 (28) 1,039 (83) 956 Total non-performing loans $ 1,067 $ (28) $ 1,039 $ (83) $ 956 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. At June 30, 2022 Unpaid Related Net Principal Charge-offs Recorded Recorded (In Thousands) Balance Related Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 993 $ — $ 993 $ (85) $ 908 Without a related allowance (2) 548 (33) 515 — 515 Total single-family loans 1,541 (33) 1,508 (85) 1,423 Total non-performing loans $ 1,541 $ (33) $ 1,508 $ (85) $ 1,423 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. At December 31, 2022, there were no commitments to lend additional funds to those borrowers whose loans were classified as non-performing. For the quarters ended December 31, 2022 and 2021, the Corporation’s average recorded investment in non-performing loans was $1.0 million and $4.2 million, respectively. The Corporation records payments on non-performing loans utilizing the cash basis or cost recovery method of accounting during the periods when the loans are on non-performing status. For the quarter ended December 31, 2022, the Bank received $16,000 in interest payments from non-performing loans, of which $15,000 was recognized as interest income and the remaining $1,000 was applied to reduce the loan balances under the cost recovery method. In comparison, for the quarter ended December 31, 2021, the Bank received $138,000 in interest payments from non-performing loans, of which $131,000 was recognized as interest income and the remaining $7,000 was applied to reduce the loan balances under the cost recovery method. For the six months ended December 31, 2022 and 2021, the Corporation’s average recorded investment in non-performing loans was $1.1 million and $6.0 million, respectively. For the six months ended December 31, 2022, the Bank received $23,000 in interest payments from non-performing loans, of which $20,000 was recognized as interest income and the remaining $3,000 was applied to reduce the loan balances under the cost recovery method. In comparison, for the six months ended December 31, 2021, the Bank received $349,000 in interest payments from non-performing loans, of which $333,000 was recognized as interest income and the remaining $16,000 was applied to reduce the loan balances under the cost recovery method. The following tables present the average recorded investment in non-performing loans and the related interest income recognized for the quarters and six months ended December 31, 2022 and 2021: Quarter Ended December 31, 2022 2021 Average Interest Average Interest Recorded Income Recorded Income (In Thousands) Investment Recognized Investment Recognized Without related allowances: Mortgage loans: Single-family $ 59 $ — $ 667 $ 91 59 — 667 91 With related allowances: Mortgage loans: Single-family 984 15 2,283 24 Multi-family — — 1,253 16 984 15 3,536 40 Total $ 1,043 $ 15 $ 4,203 $ 131 Six Months Ended December 31, 2022 2021 Average Interest Average Interest Recorded Income Recorded Income (In Thousands) Investment Recognized Investment Recognized Without related allowances: Mortgage loans: Single-family $ 93 $ — $ 742 $ 231 93 — 742 231 With related allowances: Mortgage loans: Single-family 987 20 4,055 71 Multi-family — — 1,183 31 987 20 5,238 102 Total $ 1,080 $ 20 $ 5,980 $ 333 For the quarter ended December 31, 2022, no loans were restructured, while seven loans were upgraded to the pass category. For the quarter ended December 31, 2021, 10 loans were upgraded to the pass category, while three restructured loans were paid off. During both quarters ended December 31, 2022 and 2021, no restructured loans were in default within a 12-month period subsequent to their original restructuring. For the six months ended December 31, 2022, no loans were restructured, 10 loans were upgraded to the pass category, while one restructured loan was paid off. For the six months ended December 31, 2021, 14 loans were upgraded to the pass category, while four restructured loans paid off. During both six months ended December 31, 2022 and 2021, no restructured loans were in default within a 12-month period subsequent to their original restructuring. As of December 31, 2022, the Corporation held two restructured loans with a net outstanding balance of $972,000, of which one loan totaling $714,000 was classified as substandard and on non-accrual status. As of June 30, 2022, the Corporation held 13 restructured loans with a net outstanding balance of $4.5 million, of which one loan totaling $722,000 was classified as substandard on non-accrual status. As of December 31, 2022 and June 30, 2022, all of the restructured loans were current with respect to their modified payment terms at both dates. The Corporation upgrades restructured single-family loans to the pass category if the borrower has demonstrated satisfactory contractual payments for at least six consecutive months; 12 months for those loans that were restructured more than once; and if the borrower has demonstrated satisfactory contractual payments beyond 12 consecutive months, the loan is no longer categorized as a restructured loan. In addition to the payment history described above, multi-family, commercial real estate, construction and commercial business loans must also demonstrate a combination of the following characteristics to be upgraded: satisfactory cash flow, satisfactory guarantor support, and additional collateral support, among others. To qualify for restructuring, a borrower must provide evidence of their creditworthiness such as, current financial statements, their most recent income tax returns, current paystubs, current W-2s, and most recent bank statements, among other documents, which are then verified by the Corporation. The Corporation re-underwrites the loan with the borrower’s updated financial information, new credit report, current loan balance, new interest rate, remaining loan term, updated property value and modified payment schedule, among other considerations, to determine if the borrower qualifies. The following table summarizes at the dates indicated the restructured loan balances, net of allowance for loan losses, by loan type: At At (In Thousands) December 31, 2022 June 30, 2022 Restructured loans on non-accrual status: Mortgage loans: Single-family $ 714 $ 722 Total 714 722 Restructured loans on accrual status: Mortgage loans: Single-family 258 3,748 Total 258 3,748 Total restructured loans $ 972 $ 4,470 The following tables identify the Corporation’s total recorded investment in restructured loans by type at the dates and for the periods indicated. At December 31, 2022 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 752 $ — $ 752 $ (38) $ 714 Without a related allowance (2) 258 — 258 — 258 Total single-family 1,010 — 1,010 (38) 972 Total restructured loans $ 1,010 $ — $ 1,010 $ (38) $ 972 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. At June 30, 2022 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 760 $ — $ 760 $ (38) $ 722 Without a related allowance (2) 3,748 — 3,748 — 3,748 Total single-family 4,508 — 4,508 (38) 4,470 Total restructured loans $ 4,508 $ — $ 4,508 $ (38) $ 4,470 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. During the quarters and six months ended December 31, 2022 and 2021, no properties were acquired in the settlement of loans and no previously foreclosed upon properties were sold. As of both December 31, 2022 and June 30, 2022, there was no real estate owned property. A new appraisal is obtained on each of the properties at the time of foreclosure and fair value is derived by using the lower of the appraised value or the listing price of the property, net of selling costs. Any initial loss is recorded as a charge to the allowance for loan losses before being transferred to real estate owned. Subsequent to transfer to real estate owned, if there is further deterioration in real estate values, specific real estate owned loss reserves are established and charged to the condensed consolidated statements of operations. In addition, the Corporation records costs to car |
Derivative and Other Financial
Derivative and Other Financial Instruments with Off-Balance Sheet Risks | 6 Months Ended |
Dec. 31, 2022 | |
Derivative and Other Financial Instruments with Off-Balance Sheet Risks | |
Derivative and Other Financial Instruments with Off-Balance Sheet Risks | Note 6: Derivative and Other Financial Instruments with Off-Balance Sheet Risks The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit in the form of originating loans or providing funds under existing lines of credit, loan sale commitments to third parties and option contracts. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the accompanying Condensed Consolidated Statements of Financial Condition. The Corporation’s exposure to credit loss, in the event of non-performance by the counterparty to these financial instruments, is represented by the contractual amount of these instruments. The Corporation uses the same credit policies in entering into financial instruments with off-balance sheet risk as it does for on-balance sheet instruments. As of December 31, 2022 and June 30, 2022, the Corporation had commitments to extend credit on loans to be held for investment of $8.4 million and $43.4 million, respectively. The following table provides information at the dates indicated regarding undisbursed funds on construction loans, undisbursed funds to borrowers on existing lines of credit with the Corporation as well as commitments to originate loans to be held for investment at the dates indicated below. Commitments December 31, 2022 June 30, 2022 (In Thousands) Undisbursed loan funds – Construction loans $ 3,348 $ 3,384 Undisbursed lines of credit – Commercial business loans 834 541 Undisbursed lines of credit – Consumer loans 380 390 Commitments to extend credit on loans to be held for investment 8,415 43,386 Total $ 12,977 $ 47,701 The following table provides information regarding the allowance for loan losses for the undisbursed funds and commitments to extend credit on loans to be held for investment for the quarters and six months ended December 31, 2022 and 2021. For the Quarter Ended For the Six Months Ended December 31, December 31, (In Thousands) 2022 2021 2022 2021 Balance, beginning of the period $ 137 $ 104 $ 130 $ 127 Recovery (66) (5) (59) (28) Balance, end of the period $ 71 $ 99 $ 71 $ 99 In accordance with ASC 815, “Derivatives and Hedging,” and interpretations of the Derivatives Implementation Group of the FASB, the fair value of the commitments to extend credit on loans to be held for sale, loan sale commitments, to be announced (“TBA”) MBS trades, put option contracts and call option contracts are recorded at fair value on the Condensed Consolidated Statements of Financial Condition. The Corporation does not apply hedge accounting to its derivative financial instruments; therefore, all changes in fair value are recorded in earnings. As of December 31, 2022 and June 30, 2022, there were no outstanding derivative financial instruments. Loans previously sold to the FHLB – San Francisco under the Mortgage Partnership Finance (“MPF”) program have a recourse liability. The FHLB – San Francisco absorbs the first four basis points of loss by establishing a first loss account and a credit scoring process is used to calculate the maximum recourse amount for the Bank. All losses above the Bank’s maximum recourse amount are the responsibility of the FHLB – San Francisco. The FHLB – San Francisco pays the Bank a credit enhancement fee on a monthly basis to compensate the Bank for accepting the recourse obligation. As of December 31, 2022 and June 30, 2022, the Bank serviced $3.8 million and $4.1 million of loans under this program, respectively, and has established a recourse liability of $10,500 at both dates. Occasionally, the Bank is required to repurchase loans sold to Freddie Mac, Fannie Mae or other investors if it is determined that such loans do not meet the credit requirements of the investor, or if one of the parties involved in the loan misrepresented pertinent facts, committed fraud, or if such loans were 90-days past due within 120 days of the loan funding date. During the quarters and six months ended December 31, 2022 and 2021, the Bank did not repurchase any loans or settle any request to repurchase a loan. In addition to the specific recourse liability for the MPF program, the Bank established a recourse liability of $150,000 for loans sold to other investors at both December 31, 2022 and June 30, 2022. The following table shows the summary of the recourse liability for the quarters and six months ended December 31, 2022 and 2021: For the Quarter Ended For the Six Months Ended December 31, December 31, Recourse Liability 2022 2021 2022 2021 (In Thousands) Balance, beginning of the period $ 160 $ 200 $ 160 $ 200 Recovery for recourse liability — (40) — (40) Net settlements in lieu of loan repurchases — — — — Balance, end of the period $ 160 $ 160 $ 160 $ 160 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Dec. 31, 2022 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | Note 7: Fair Value of Financial Instruments The Corporation adopted ASC 820, “Fair Value Measurements and Disclosures,” and elected the fair value option pursuant to ASC 825, “Financial Instruments.” ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 825 permits entities to elect to measure many financial instruments and certain other assets and liabilities at fair value on an instrument-by-instrument basis (the “Fair Value Option”) at specified election dates. At each subsequent reporting date, an entity is required to report unrealized gains and losses on items in earnings for which the fair value option has been elected. The objective of the Fair Value Option is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. The following table describes the difference at the dates indicated between the aggregate fair value and the aggregate unpaid principal balance of loans held for investment at fair value: Aggregate Unpaid Net Aggregate Principal Unrealized (In Thousands) Fair Value Balance Loss As of December 31, 2022: Loans held for investment, at fair value $ 1,345 $ 1,529 $ (184) As of June 30, 2022: Loans held for investment, at fair value $ 1,396 $ 1,569 $ (173) ASC 820-10-65-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly,” provides additional guidance for estimating fair value in accordance with ASC 820, “Fair Value Measurements,” when the volume and level of activity for the asset or liability have significantly decreased. ASC 820 establishes a three-level valuation hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Level 2 - Observable inputs other than Level 1 such as: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated to observable market data for substantially the full term of the asset or liability. Level 3 - Unobservable inputs for the asset or liability that use significant assumptions, including assumptions of risks. These unobservable assumptions reflect the Corporation’s estimate of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of pricing models, discounted cash flow models and similar techniques. ASC 820 requires the Corporation to maximize the use of observable inputs and minimize the use of unobservable inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. The Corporation’s financial assets and liabilities measured at fair value on a recurring basis consist of investment securities available for sale, loans held for investment at fair value and interest-only strips; while non-performing loans, mortgage servicing assets ("MSA") and real estate owned, if any, are measured at fair value on a nonrecurring basis. Investment securities - available for sale are primarily comprised of U.S. government agency MBS, U.S. government sponsored enterprise MBS and privately issued CMO. The Corporation utilizes quoted prices in active markets for similar securities for its fair value measurement of MBS (Level 2) and broker price indications for similar securities in non-active markets for its fair value measurement of the CMO (Level 3). Loans held for investment at fair value are primarily single-family loans which have been transferred from loans held for sale. The fair value is determined by the management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan (Level 3). Non-performing loans are loans which are inadequately protected by the current sound worth and paying capacity of the borrowers or of the collateral pledged. The non-performing loans are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. The fair value of a non-performing loan is determined based on an observable market price or current appraised value of the underlying collateral. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the borrower. For non-performing loans which are restructured loans, the fair value is derived from discounted cash flow analysis (Level 3), except those which are in the process of foreclosure or 90 days delinquent for which the fair value is derived from the appraised value of its collateral (Level 2). For other non-performing loans which are not restructured loans, other than non-performing commercial real estate loans, the fair value is derived from relative value analysis: historical experience and management estimates by loan type for which collectively evaluated allowances are assigned (Level 3); or the appraised value of its collateral for loans which are in the process of foreclosure or where borrowers file bankruptcy (Level 2). For non-performing commercial real estate loans, the fair value is derived from the appraised value of its collateral (Level 2). Non-performing loans are reviewed and evaluated on at least a quarterly basis for additional allowance and adjusted accordingly, based on the same factors identified above. This loss is not recorded directly as an adjustment to current earnings or other comprehensive income (loss), but rather as a component in determining the overall adequacy of the allowance for loan losses. These adjustments to the estimated fair value of non-performing loans may result in increases or decreases to the provision for loan losses recorded in current earnings. The Corporation uses the amortization method for its MSA, which amortizes the MSA in proportion to and over the period of estimated net servicing income and assesses the MSA for impairment based on fair value at each reporting date. The fair value of the MSA is derived using the present value method; which includes a third party’s prepayment projections of similar instruments, weighted-average coupon rates, estimated servicing costs and discount interest rates (Level 3). The rights to future income from serviced loans that exceed contractually specified servicing fees are recorded as interest-only strips. The fair value of interest-only strips is derived using the same assumptions that are used to value the related MSA (Level 3). The Corporation’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Corporation’s valuation methodologies 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 estimate of fair value at the reporting date. The following fair value hierarchy tables present information at the dates indicated about the Corporation’s assets and liabilities measured at fair value on a recurring basis: Fair Value Measurement at December 31, 2022 Using: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities - available for sale: U.S. government agency MBS $ — $ 1,533 $ — $ 1,533 U.S. government sponsored enterprise MBS — 742 — 742 Private issue CMO — — 102 102 Investment securities - available for sale — 2,275 102 2,377 Loans held for investment, at fair value — — 1,345 1,345 Interest-only strips — — 9 9 Total assets $ — $ 2,275 $ 1,456 $ 3,731 Liabilities: $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — Fair Value Measurement at June 30, 2022 Using: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities - available for sale: U.S. government agency MBS $ — $ 1,698 $ — $ 1,698 U.S. government sponsored enterprise MBS — 865 — 865 Private issue CMO — — 113 113 Investment securities - available for sale — 2,563 113 2,676 Loans held for investment, at fair value — — 1,396 1,396 Interest-only strips — — 7 7 Total assets $ — $ 2,563 $ 1,516 $ 4,079 Liabilities: $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — The following tables summarize reconciliations of the beginning and ending balances during the periods shown of recurring fair value measurements recognized in the Condensed Consolidated Statements of Financial Condition using Level 3 inputs: For the Quarter Ended December 31, 2022 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) Private Loans Held For Interest- Issue Investment, at Only (In Thousands) CMO fair value (1) Strips Total Beginning balance at September 30, 2022 $ 107 $ 1,350 $ 7 $ 1,464 Total gains or losses (realized/unrealized): Included in earnings — 15 — 15 Included in other comprehensive income (loss) (3) — 2 (1) Purchases — — — — Issuances — — — — Settlements (2) (20) — (22) Transfers in and/or out of Level 3 — — — — Ending balance at December 31, 2022 $ 102 $ 1,345 $ 9 $ 1,456 (1) The valuation of loans held for investment at fair value includes management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. For the Quarter Ended December 31, 2021 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) Private Loans Held For Interest- Issue Investment, at Only (In Thousands) CMO fair value Strips Total Beginning balance at September 30, 2021 $ 150 $ 1,577 $ 9 $ 1,736 Total gains or losses (realized/unrealized): Included in earnings — 6 — 6 Included in other comprehensive income (loss) (1) — — (1) Purchases — — — — Issuances — — — — Settlements (3) (28) — (31) Transfers in and/or out of Level 3 — — — — Ending balance at December 31, 2021 $ 146 $ 1,555 $ 9 $ 1,710 For the Six Months Ended December 31, 2022 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) Private Loans Held For Interest- Issue Investment, at Only (In Thousands) CMO fair value Strips Total Beginning balance at June 30, 2022 $ 113 $ 1,396 $ 7 $ 1,516 Total gains or losses (realized/unrealized): Included in earnings — (11) — (11) Included in other comprehensive income (loss) (4) — 2 (2) Purchases — — — — Issuances — — — — Settlements (7) (40) — (47) Transfers in and/or out of Level 3 — — — — Ending balance at December 31, 2022 $ 102 $ 1,345 $ 9 $ 1,456 For the Six Months Ended December 31, 2021 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) Private Loans Held For Interest- Issue Investment, at Only (In Thousands) CMO fair value Strips Total Beginning balance at June 30, 2021 $ 154 $ 1,874 $ 10 $ 2,038 Total gains or losses (realized/unrealized): Included in earnings — 8 — 8 Included in other comprehensive income (loss) — — (1) (1) Purchases — — — — Issuances — — — — Settlements (8) (327) — (335) Transfers in and/or out of Level 3 — — — — Ending balance at December 31, 2021 $ 146 $ 1,555 $ 9 $ 1,710 The following fair value hierarchy tables present information about the Corporation’s assets measured at fair value at the dates indicated on a nonrecurring basis: Fair Value Measurement at December 31, 2022 Using: (In Thousands) Level 1 Level 2 Level 3 Total Non-performing loans $ — $ 58 $ 898 $ 956 Mortgage servicing assets — — 101 101 Total $ — $ 58 $ 999 $ 1,057 Fair Value Measurement at June 30, 2022 Using: (In Thousands) Level 1 Level 2 Level 3 Total Non-performing loans $ — $ 515 $ 908 $ 1,423 Mortgage servicing assets — — 168 168 Total $ — $ 515 $ 1,076 $ 1,591 The following table presents additional information about valuation techniques and inputs used for assets and liabilities, which are measured at fair value and categorized within Level 3 as of December 31, 2022: Impact to Fair Value Valuation As of from an December 31, Valuation Range (1) Increase in (Dollars In Thousands) 2022 Techniques Unobservable Inputs (Weighted Average) Inputs (2) Assets: Securities available-for sale: Private issue CMO $ 102 Market comparable pricing Comparability adjustment (6.4%) - (7.4%) (7.2%) Increase Loans held for investment, at fair value $ 1,345 Relative value analysis Broker quotes 88.1% - 98.0% (91.3%) Increase Credit risk factor 1.2% - 6.6% (3.3%) Decrease Non-performing loans (3) $ 714 Discounted cash flow Default rates 5.0% Decrease Non-performing loans (4) $ 184 Relative value analysis Credit risk factor 20.0% Decrease Mortgage servicing assets $ 101 Discounted cash flow Prepayment speed (CPR) 4.6% - 60.0% (8.9%) Decrease Discount rate 9.0% - 10.5% (9.1%) Decrease Interest-only strips $ 9 Discounted cash flow Prepayment speed (CPR) 7.7% - 8.4% (8.4%) Decrease Discount rate 9.0% Decrease Liabilities: None (1) The range is based on the historical estimated fair values and management estimates. (2) Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 asset instruments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements. (3) Consists of restructured loans . (4) Consists of other non-performing loans, excluding restructured loans. The significant unobservable inputs used in the fair value measurement of the Corporation’s assets and liabilities include the following: prepayment speeds, discount rates and broker quotes, among others. Significant increases or decreases in any of these inputs in isolation could result in significantly lower or higher fair value measurement. The various unobservable inputs used to determine valuations may have similar or diverging impacts on valuation. The carrying amount and fair value of the Corporation’s other financial instruments as of December 31, 2022 and June 30, 2022 was as follows: December 31, 2022 Carrying Fair (In Thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Loans held for investment, not recorded at fair value $ 1,038,992 $ 957,388 $ — $ — $ 957,388 Investment securities - held to maturity $ 168,232 $ 148,419 $ — $ 148,419 $ — FHLB – San Francisco stock $ 8,239 $ 8,239 $ — $ 8,239 $ — Financial liabilities: Deposits $ 945,302 $ 818,882 $ — $ — $ 818,882 Borrowings $ 180,000 $ 178,343 $ — $ — $ 178,343 June 30, 2022 Carrying Fair (In Thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Loans held for investment, not recorded at fair value $ 938,596 $ 892,339 $ — $ — $ 892,339 Investment securities - held to maturity $ 185,745 $ 171,724 $ — $ 171,724 $ — FHLB – San Francisco stock $ 8,239 $ 8,239 $ — $ 8,239 $ — Financial liabilities: Deposits $ 955,504 $ 917,220 $ — $ — $ 917,220 Borrowings $ 85,000 $ 84,299 $ — $ — $ 84,299 Loans held for investment, not recorded at fair value: For loans that reprice frequently at market rates, the carrying amount approximates the fair value. For fixed-rate loans, the fair value is determined by either (i) discounting the estimated future cash flows of such loans over their estimated remaining contractual maturities using a current interest rate at which such loans would be made to borrowers, or (ii) quoted market prices. Investment securities - held to maturity: The investment securities - held to maturity consist of time deposits at CRA qualified minority financial institutions, U.S. SBA securities, U.S. government sponsored enterprise CMO and U.S. government sponsored enterprise MBS. Due to the short-term nature of the time deposits, the principal balance approximated fair value (Level 2). For the MBS, CMO and SBA securities, the Corporation utilizes quoted prices in active markets for similar securities for its fair value measurement (Level 2). FHLB – San Francisco stock: The carrying amount reported for FHLB – San Francisco stock approximates fair value. When redeemed, the Corporation will receive an amount equal to the par value of the stock. Deposits: The fair value of time deposits is estimated using a discounted cash flow calculation. The discount rate is based upon rates currently offered for deposits of similar remaining maturities. The fair value of transaction accounts (checking, money market and savings accounts) is estimated using a discounted cash flow calculation and management estimates of current market conditions. Borrowings: The fair value of borrowings has been estimated using a discounted cash flow calculation. The discount rate on such borrowings is based upon rates currently offered for borrowings of similar remaining maturities. The Corporation has various processes and controls in place to ensure that fair value is reasonably estimated. The Corporation generally determines fair value of their Level 3 assets and liabilities by using internally developed models which primarily utilize discounted cash flow techniques and prices obtained from independent management services or brokers. The Corporation performs due diligence procedures over third-party pricing service providers in order to support their use in the valuation process. While the Corporation 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 estimate of fair value at the reporting date. During the quarter ended December 31, 2022, there were no significant changes to the Corporation’s valuation techniques that had, or are expected to have, a material impact on its condensed consolidated financial position or results of operations. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 6 Months Ended |
Dec. 31, 2022 | |
Revenue From Contracts With Customers | |
Revenue From Contracts With Customers | Note 8: Revenue From Contracts With Customers In accordance with ASC 606, revenues are recognized when goods or services are transferred to the customer in exchange for the consideration the Corporation expects to be entitled to receive. The largest portion of the Corporation's revenue is from interest income, which is not in the scope of ASC 606. All of the Corporation's revenue from contracts with customers in the scope of ASC 606 is recognized in non-interest income. If a contract is determined to be within the scope of ASC 606, the Corporation recognizes revenue as it satisfies a performance obligation. Payments from customers are generally collected at the time services are rendered, monthly, quarterly or annually. For contracts with customers within the scope of ASC 606, revenue is either earned at a point in time or revenue is earned over time. Examples of revenue earned at a point in time are automated teller machine ("ATM") transaction fees, wire transfer fees, overdraft fees and interchange fees. Revenue is primarily based on the number and type of transactions that are generally derived from transactional information accumulated by our systems and is recognized immediately as the transactions occur or upon providing the service to complete the customer's transaction. The Corporation is generally the principal in these contracts, with the exception of interchange fees, in which case the Corporation is acting as the agent and records revenue net of expenses paid to the principal. Examples of revenue earned over time, which generally occur on a monthly basis, are deposit account maintenance fees, investment advisory fees, merchant revenue, trust and investment management fees and safe deposit box fees. Revenue is generally derived from transactional information accumulated by our systems or those of third-parties and is recognized as the related transactions occur or services are rendered to the customer. Disaggregation of Revenue: The following table includes the Corporation's non-interest income disaggregated by type of services for the quarters and six months ended December 31, 2022 and 2021: Quarter Ended Six Months Ended December 31, December 31, Type of Services 2022 2021 2022 2021 (In Thousands) Loan servicing and other fees (1) $ 115 $ 444 $ 223 $ 630 Deposit account fees 327 325 670 637 Card and processing fees 367 399 748 804 Other (2) 147 200 318 366 Total non-interest income $ 956 $ 1,368 $ 1,959 $ 2,437 (1) Not within the scope of ASC 606. (2) Includes BOLI of $47 thousand, $48 thousand, $93 thousand and $95 thousand for the quarters and six months ended December 31, 2022 and 2021, respectively , which are not within the scope of ASC 606. For both the quarters and six months ended December 31, 2022 and 2021, substantially all of the Corporation's revenues within the scope of ASC 606 are for performance obligations satisfied at a specified date. Revenues recognized within the scope of ASC 606: Deposit account fees Card and processing fees Other loans, prepayment fees, late charges, brokered loan fees, maintenance fees and others. These fees are recognized concurrent with the event on a daily, monthly, quarterly or annual basis, depending on the type of service. |
Leases
Leases | 6 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | Note 9: Leases The Corporation accounts for its leases in accordance with ASC 842 which requires the Corporation to record liabilities for future lease obligations as well as assets representing the right to use the underlying leased assets. The Corporation's leases primarily represent future obligations to make payments for the use of buildings, space or equipment for its operations. Liabilities to make future lease payments are recorded in accounts payable, accrued interest and other liabilities, while right-of-use assets are recorded in premises and equipment in the Corporation's condensed consolidated statements of financial condition. At December 31, 2022, all of the Corporation's leases were classified as operating leases and the Corporation did not have any operating leases with an initial term of 12 months or less ("short-term leases"). Liabilities to make future lease payments and right of use assets are recorded for operating leases and do not include short-term leases. These liabilities and right-of-use assets are determined based on the total contractual base rents for each lease, which include options to extend or renew each lease, where applicable, and where the Corporation believes it has an economic incentive to extend or renew the lease. Due to the fact that lease extensions are not reasonably certain, the Corporation generally does not recognize payments occurring during option periods in the calculation of its operating right-of-use lease assets and operating lease liabilities. The Corporation utilizes the FHLB – San Francisco rates as a discount rate for each of the remaining contractual terms at the adoption date as well as for future leases if the discount rate is not stated in the lease. For leases that contain variable lease payments, the Corporation assumes future lease payment escalations based on a lease payment escalation rate specified in the lease or the specified index rate observed at the time of lease commencement. Liabilities to make future lease payments are accounted for using the interest method, being reduced by periodic contractual lease payments net of periodic interest accretion. Right-of-use assets for operating leases are amortized over the term of the associated lease by amounts that represent the difference between periodic straight-line lease expense and periodic interest accretion in the related liability to make future lease payments. For the quarters ended December 31, 2022 and 2021, expenses associated with the Corporation’s leases totaled $216,000 and $219,000, respectively, and were recorded in premises and occupancy expenses and equipment expenses in the condensed consolidated statements of operations. For the six months ended December 31, 2022 and 2021, expenses associated with the Corporation’s leases totaled $431,000 and $442,000, respectively, and were recorded in premises and occupancy expenses and equipment expenses in the condensed consolidated statements of operations. The following table presents supplemental information related to operating leases at the date and for the periods indicated: As of (In Thousands) December 31, 2022 June 30, 2022 Condensed Consolidated Statements of Condition: Premises and equipment - Operating lease right of use assets $ 1,727 $ 1,969 Accounts payable, accrued interest and other liabilities – Operating lease liabilities $ 1,747 $ 1,998 Quarter Ended Six Months Ended December 31, December 31, (In Thousands) 2022 2021 2022 2021 Condensed Consolidated Statements of Operations: Premises and occupancy expenses from operating leases (1) $ 193 $ 195 $ 386 $ 395 Equipment expenses from operating leases $ 23 $ 24 $ 45 $ 47 (1) Includes immaterial variable lease costs. Six Months Ended Six Months Ended (In Thousands) December 31, 2022 December 31, 2021 Condensed Consolidated Statements of Cash Flows: Operating cash flows from operating leases, net $ 437 $ 465 The following table provides information related to remaining minimum contractual lease payments and other information associated with the Corporation’s leases as of December 31, 2022: Amount (1) Year Ending June 30, (In Thousands) 2023 $ 418 2024 644 2025 467 2026 236 2027 39 Thereafter — Total contract lease payments $ 1,804 Total liability to make lease payments $ 1,747 Difference in undiscounted and discounted future lease payments $ 57 Weighted average discount rate 2.26 % Weighted average remaining lease term (years) 2.6 (1) Contractual base rents do not include property taxes and other operating expenses due under respective lease agreements. |
Stock Repurchases
Stock Repurchases | 6 Months Ended |
Dec. 31, 2022 | |
Stock Repurchases | |
Stock Repurchases | Note 10: Stock Repurchases On April 28, 2022, the Board of Directors of the Corporation authorized the repurchase of up to five percent of the Corporation’s common stock, approximately 364,259 shares (the “April 2022 stock repurchase plan”). The Corporation may purchase the shares from time to time in the open market or through privately negotiated transactions over a one-year period depending on market conditions, the capital requirements of the Corporation, and available cash that can be allocated to the stock repurchase program, among other considerations. The April 2022 stock repurchase plan will continue for a period of one year or until completed, whichever occurs first. During the quarter ended December 31, 2022, the Corporation purchased 103,290 shares of its common stock under the April 2022 stock repurchase plan with a weighted average cost of $14.26 per share. For the six months ended December 31, 2022, the Corporation purchased 152,914 shares of the Corporation’s common stock under the April 2022 stock repurchase plan with a weighted average cost of $14.36 per share. As of December 31, 2022, a total of 211,345 shares or 58 percent of authorized shares under the plan remains available for purchase until the plan expires on April 28, 2023. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Dec. 31, 2022 | |
Subsequent Event | |
Subsequent Event | Note 11: Subsequent Events On January 24, 2023, the Corporation announced that the Corporation’s Board of Directors declared a quarterly cash dividend of $0.14 per share. Shareholders of the Corporation’s common stock at the close of business on February 14, 2023 are entitled to receive the cash dividend. The cash dividend will be payable on March 7, 2023. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Dec. 31, 2022 | |
Organization and Summary of Significant Accounting Policies | |
Basis of Presentation | The unaudited interim condensed consolidated financial statements included herein reflect all adjustments which are, in the opinion of management, necessary to present a fair statement of the results of operations for the interim periods presented. All such adjustments are of a normal, recurring nature. The condensed consolidated statement of financial condition at June 30, 2022 is derived from the audited consolidated financial statements of Provident Financial Holdings, Inc. and its wholly-owned subsidiary, Provident Savings Bank, F.S.B. (the "Bank") (collectively, the "Corporation"). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") with respect to interim financial reporting. It is recommended that these unaudited interim condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended June 30, 2022 (“2022 Annual Form 10-K”). The results of operations for the quarter and six months ended December 31, 2022 are not necessarily indicative of results that may be expected for the entire fiscal year ending June 30, 2023. |
Accounting standard updates ("ASU") | There have been no accounting standard updates or changes in the status of their adoption that are material to the Corporation as previously disclosed in Note 1 of the Corporation's 2022 Annual Form 10-K, except the following: ASU 2020-04: In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of reference Rate Reform on Financial Reporting. This ASU applies to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or other rate references expected to be discontinued because of reference rate reform. The ASU permits an entity to make necessary modifications to eligible contracts or transactions without requiring contract re-measurement or reassessment of a previous accounting determination. In January 2021, ASU 2021-01 clarified that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the changes in the interest rates used for margining, discounting, or contract price alignment for derivative instruments that are being implemented as part of the market-wide transition to new reference rates (commonly referred to as the “discounting transition”). In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848. The FASB had originally included a sunset provision within Topic 848 based on expectations of when the LIBOR would cease being published. In March 2021, it was announced that the intended cessation date of LIBOR would be extended to June 30, 2023. As a result, the FASB issued ASU 2022-06 deferring the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. This ASU is effective for all entities as of March 12, 2020 through December 31, 2024. The Corporation is in the process of compiling data on the impact of reference rate reform and has not determined the impact of the adoption of this ASU on its consolidated financial statements. ASU 2016-13: In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendments to the initial guidance in November 2018, ASU No. 2018-19, April 2019, ASU 2019-04, May 2019, ASU 2019-05, November 2019, ASU 2019-11, February 2020, ASU 2020-02, March 2020, ASU 2020-03 and March 2022, ASU 2022-02, all of which clarifies codification and corrects unintended application of the guidance. In November 2019, the FASB also issued ASU 2019-10, “Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates” extending the adoption date for certain registrants, including the Corporation. These ASUs related to Topic 326 will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Corporation is evaluating its current expected loss methodology of its loans held for investment and investment securities held to maturity to identify the necessary modifications in accordance with these standards and expects a change in the processes and procedures to calculate the allowance for credit losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The Corporation has established a project team and implementation plan to address the key components to this process. The Corporation has determined its loan segmentation and compiled historical data, which is currently under evaluation. The Corporation is preparing to evaluate the appropriate methodologies for each loan grouping and is beginning testing, parallel runs, and sensitivity analysis on its initial modeling assumptions and results prior to the adoption date of July 1, 2023. The Corporation anticipates the allowance for credit losses for loans held for investment to change through a one-time adjustment to retained earnings and is still evaluating the potential impact upon adoption that these ASUs will have on the Corporation’s Consolidated Financial Statements; however, until the evaluation is complete the magnitude of the potential change will be unknown. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share | |
Schedule of earnings per share, basic and diluted | For the Quarter Ended For the Six Months Ended December 31, December 31, (In Thousands, Except Earnings Per Share) 2022 2021 2022 2021 Numerator: Net income – numerator for basic earnings per share and diluted earnings per share - available to common stockholders $ 2,371 $ 2,264 $ 4,461 $ 4,931 Denominator: Denominator for basic earnings per share: Weighted-average shares 7,185 7,435 7,229 7,483 Effect of dilutive shares: Stock options — 37 — 39 Restricted stock 52 11 44 7 Denominator for diluted earnings per share: Adjusted weighted-average shares and assumed conversions 7,237 7,483 7,273 7,529 Basic earnings per share $ 0.33 $ 0.30 $ 0.62 $ 0.66 Diluted earnings per share $ 0.33 $ 0.30 $ 0.61 $ 0.65 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Investment Securities | |
Schedule of available-for-sale securities reconciliation | Gross Gross Estimated Amortized Unrealized Unrealized Fair Carrying December 31, 2022 Cost Gains (Losses) Value Value (In Thousands) Held to maturity U.S. government sponsored enterprise MBS (1) $ 163,612 $ — $ (19,500) $ 144,112 $ 163,612 U.S. government sponsored enterprise CMO (2) 3,907 — (313) 3,594 3,907 U.S. SBA securities (3) 713 — — 713 713 Total investment securities - held to maturity 168,232 — (19,813) 148,419 168,232 Available for sale U.S. government agency MBS 1,569 — (36) 1,533 1,533 U.S. government sponsored enterprise MBS 754 — (12) 742 742 Private issue CMO 110 — (8) 102 102 Total investment securities - available for sale 2,433 — (56) 2,377 2,377 Total investment securities $ 170,665 $ — $ (19,869) $ 150,796 $ 170,609 (1) (2) (3) Gross Gross Estimated Amortized Unrealized Unrealized Fair Carrying June 30, 2022 Cost Gains (Losses) Value Value (In Thousands) Held to maturity U.S. government sponsored enterprise MBS $ 180,492 $ 63 $ (13,945) $ 166,610 $ 180,492 U.S. government sponsored enterprise CMO 3,913 — (150) 3,763 3,913 U.S. SBA securities 940 11 — 951 940 Certificate of deposits 400 — — 400 400 Total investment securities - held to maturity 185,745 74 (14,095) 171,724 185,745 Available for sale U.S. government agency MBS 1,698 6 (6) 1,698 1,698 U.S. government sponsored enterprise MBS 865 4 (4) 865 865 Private issue CMO 118 — (5) 113 113 Total investment securities - available for sale 2,681 10 (15) 2,676 2,676 Total investment securities $ 188,426 $ 84 $ (14,110) $ 174,400 $ 188,421 |
Schedule of investments with unrealized loss position | As of December 31, 2022 Unrealized Holding Losses Unrealized Holding Losses Unrealized Holding Losses (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses Held to maturity U.S. government sponsored enterprise MBS $ 15,934 $ 369 $ 128,178 $ 19,131 $ 144,112 $ 19,500 U.S. government sponsored enterprise CMO 3,594 313 — — 3,594 313 Total investment securities - held to maturity 19,528 682 128,178 19,131 147,706 19,813 Available for sale U.S government agency MBS 1,533 36 — — 1,533 36 U.S. government sponsored enterprise MBS 669 11 22 1 691 12 Private issue CMO 102 8 — — 102 8 Total investment securities - available for sale 2,304 55 22 1 2,326 56 Total investment securities $ 21,832 $ 737 128,200 $ 19,132 $ 150,032 $ 19,869 As of June 30, 2022 Unrealized Holding Losses Unrealized Holding Losses Unrealized Holding Losses (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses Held to maturity U.S. government sponsored enterprise MBS $ 121,844 $ 9,018 $ 35,528 $ 4,927 $ 157,372 $ 13,945 U.S. government sponsored enterprise CMO 3,764 150 — — 3,764 150 Total investment securities - held to maturity 125,608 9,168 35,528 4,927 161,136 14,095 Available for sale U.S government agency MBS 826 6 — — 826 6 U.S. government sponsored enterprise MBS 671 4 — — 671 4 Private issue CMO 113 5 — — 113 5 Total investment securities - available for sale 1,610 15 — — 1,610 15 Total investment securities $ 127,218 $ 9,183 $ 35,528 $ 4,927 $ 162,746 $ 14,110 |
Schedule of investments classified by contractual maturity | December 31, 2022 June 30, 2022 Estimated Estimated Amortized Fair Amortized Fair (In Thousands) Cost Value Cost Value Held to maturity Due in one year or less $ 1,209 $ 1,198 $ 1,427 $ 1,425 Due after one through five years 7,405 7,129 10,908 10,805 Due after five through ten years 69,583 62,622 77,167 72,625 Due after ten years 90,035 77,470 96,243 86,869 Total investment securities - held to maturity 168,232 148,419 185,745 171,724 Available for sale Due in one year or less — — — — Due after one through five years — — — — Due after five through ten years 233 229 98 98 Due after ten years 2,200 2,148 2,583 2,578 Total investment securities - available for sale 2,433 2,377 2,681 2,676 Total investment securities $ 170,665 $ 150,796 $ 188,426 $ 174,400 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Loans Held for Investment | |
Schedule of loans held for investment | December 31, June 30, (In Thousands) 2022 2022 Mortgage loans: Single-family $ 479,730 $ 378,234 Multi-family 465,350 464,676 Commercial real estate 88,200 90,429 Construction 2,388 3,216 Other 112 123 Commercial business loans 1,358 1,206 Consumer loans 75 86 Total loans held for investment, gross 1,037,213 937,970 Advance payments of escrows 176 47 Deferred loan costs, net 8,778 7,539 Allowance for loan losses (5,830) (5,564) Total loans held for investment, net $ 1,040,337 $ 939,992 |
Schedule of loans held for investment, contractual repricing | Adjustable Rate After After After Within One Year 3 Years 5 Years (In Thousands) One Year Through 3 Years Through 5 Years Through 10 Years Fixed Rate Total Mortgage loans: Single-family $ 50,448 $ 21,760 $ 45,263 $ 252,713 $ 109,546 $ 479,730 Multi-family 134,058 131,757 148,714 50,672 149 465,350 Commercial real estate 40,491 16,720 29,679 — 1,310 88,200 Construction 494 174 — — 1,720 2,388 Other — — — — 112 112 Commercial business loans 1,291 — — — 67 1,358 Consumer loans 75 — — — — 75 Total loans held for investment, gross $ 226,857 $ 170,411 $ 223,656 $ 303,385 $ 112,904 $ 1,037,213 |
Schedule of gross loans held for investment by loan types and risk category | December 31, 2022 Commercial Other Commercial (In Thousands) Single-family Multi-family Real Estate Construction Mortgage Business Consumer Total Pass $ 478,691 $ 464,836 $ 87,648 $ 2,388 $ 112 $ 1,358 $ 75 $ 1,035,108 Special Mention — 514 — — — — — 514 Substandard 1,039 — 552 — — — — 1,591 Total loans held for investment, gross $ 479,730 $ 465,350 $ 88,200 $ 2,388 $ 112 $ 1,358 $ 75 $ 1,037,213 June 30, 2022 Commercial Other Commercial (In Thousands) Single-family Multi-family Real Estate Construction Mortgage Business Consumer Total Pass $ 376,502 $ 464,676 $ 90,429 $ 3,216 $ 123 $ 1,206 $ 86 $ 936,238 Special Mention 224 — — — — — — 224 Substandard 1,508 — — — — — — 1,508 Total loans held for investment, gross $ 378,234 $ 464,676 $ 90,429 $ 3,216 $ 123 $ 1,206 $ 86 $ 937,970 |
Schedule of allowance for loan losses and recorded investment | Quarter Ended December 31, 2022 Single- Multi- Commercial Commercial (In Thousands) family family Real Estate Construction Other Business Consumer Total Allowance for loan losses: Allowance at beginning of period $ 1,450 $ 3,305 $ 806 $ 22 $ 3 $ 48 $ 4 $ 5,638 Provision (recovery) for loan losses 149 (5) 41 (5) — 10 1 191 Recoveries 1 — — — — — — 1 Charge-offs — — — — — — — — Allowance for loan losses, end of period $ 1,600 $ 3,300 $ 847 $ 17 $ 3 $ 58 $ 5 $ 5,830 Allowance for loan losses: Individually evaluated for impairment $ 38 $ — $ — $ — $ — $ — $ — $ 38 Collectively evaluated for impairment 1,562 3,300 847 17 3 58 5 5,792 Allowance for loan losses, end of period $ 1,600 $ 3,300 $ 847 $ 17 $ 3 $ 58 $ 5 $ 5,830 Loans held for investment: Individually evaluated for impairment $ 810 $ — $ — $ — $ — $ — $ — $ 810 Collectively evaluated for impairment 478,920 465,350 88,200 2,388 112 1,358 75 1,036,403 Total loans held for investment, gross $ 479,730 $ 465,350 $ 88,200 $ 2,388 $ 112 $ 1,358 $ 75 $ 1,037,213 Allowance for loan losses as a percentage of gross loans held for investment 0.33 % 0.71 % 0.96 % 0.71 % 2.68 % 4.27 % 6.67 % 0.56 % Net (recoveries) charge-offs to average loans receivable, net during the period (0.00) % — % — % — % — % — % — % (0.00) % Quarter Ended December 31, 2021 Single- Multi- Commercial Commercial (In Thousands) family family Real Estate Construction Other Business Consumer Total Allowance for loan losses: Allowance at beginning of period $ 1,827 $ 4,525 $ 967 $ 49 $ 3 $ 37 $ 5 $ 7,413 (Recovery) provision for loan losses (693) (306) (52) 6 — (22) — (1,067) Recoveries 262 — — — — — — 262 Charge-offs — — — — — — — — Allowance for loan losses, end of period $ 1,396 $ 4,219 $ 915 $ 55 $ 3 $ 15 $ 5 $ 6,608 Allowance for loan losses: Individually evaluated for impairment $ 52 $ — $ — $ — $ — $ — $ — $ 52 Collectively evaluated for impairment 1,344 4,219 915 55 3 15 5 6,556 Allowance for loan losses, end of period $ 1,396 $ 4,219 $ 915 $ 55 $ 3 $ 15 $ 5 $ 6,608 Loans held for investment: Individually evaluated for impairment $ 1,583 $ — $ — $ — $ — $ — $ — $ 1,583 Collectively evaluated for impairment 288,662 466,467 91,236 3,501 134 362 78 850,440 Total loans held for investment, gross $ 290,245 $ 466,467 $ 91,236 $ 3,501 $ 134 $ 362 $ 78 $ 852,023 Allowance for loan losses as a percentage of gross loans held for investment 0.48 % 0.90 % 1.00 % 1.57 % 2.24 % 4.14 % 6.41 % 0.77 % Net (recoveries) charge-offs to average loans receivable, net during the period (0.37) % — % — % — % — % — % — % (0.12) % Six Months Ended December 31, 2022 Commercial Commercial (In Thousands) Single-family Multi-family Real Estate Construction Other Business Consumer Total Allowance for loan losses: Allowance at beginning of period $ 1,383 $ 3,282 $ 816 $ 23 $ 3 $ 52 $ 5 $ 5,564 Provision (recovery) for loan losses 212 18 31 (6) — 6 — 261 Recoveries 5 — — — — — — 5 Charge-offs — — — — — — — — Allowance for loan losses, end of period $ 1,600 $ 3,300 $ 847 $ 17 $ 3 $ 58 $ 5 $ 5,830 Allowance for loan losses: Individually evaluated for impairment $ 38 $ — $ — $ — $ — $ — $ — $ 38 Collectively evaluated for impairment 1,562 3,300 847 17 3 58 5 5,792 Allowance for loan losses, end of period $ 1,600 $ 3,300 $ 847 $ 17 $ 3 $ 58 $ 5 $ 5,830 Loans held for investment: Individually evaluated for impairment $ 810 $ — $ — $ — $ — $ — $ — $ 810 Collectively evaluated for impairment 478,920 465,350 88,200 2,388 112 1,358 75 1,036,403 Total loans held for investment, gross $ 479,730 $ 465,350 $ 88,200 $ 2,388 $ 112 $ 1,358 $ 75 $ 1,037,213 Allowance for loan losses as a percentage of gross loans held for investment 0.33 % 0.71 % 0.96 % 0.71 % 2.68 % 4.27 % 6.67 % 0.56 % Net (recoveries) charge-offs to average loans receivable, net during the period (0.00) % — % — % — % — % — % — % (0.00) % Six Months Ended December 31, 2021 Commercial Commercial (In Thousands) Single-family Multi-family Real Estate Construction Other Business Consumer Total Allowance for loan losses: Allowance at beginning of period $ 2,000 $ 4,485 $ 1,006 $ 51 $ 3 $ 36 $ 6 $ 7,587 (Recovery) provision for loan losses (1,031) (266) (91) 4 — (21) (1) (1,406) Recoveries 427 — — — — — — 427 Charge-offs — — — — — — — — Allowance for loan losses, end of period $ 1,396 $ 4,219 $ 915 $ 55 $ 3 $ 15 $ 5 $ 6,608 Allowance for loan losses: Individually evaluated for impairment $ 52 $ — $ — $ — $ — $ — $ — $ 52 Collectively evaluated for impairment 1,344 4,219 915 55 3 15 5 6,556 Allowance for loan losses, end of period $ 1,396 $ 4,219 $ 915 $ 55 $ 3 $ 15 $ 5 $ 6,608 Loans held for investment: Individually evaluated for impairment $ 1,583 $ — $ — $ — $ — $ — $ — $ 1,583 Collectively evaluated for impairment 288,662 466,467 91,236 3,501 134 362 78 850,440 Total loans held for investment, gross $ 290,245 $ 466,467 $ 91,236 $ 3,501 $ 134 $ 362 $ 78 $ 852,023 Allowance for loan losses as a percentage of gross loans held for investment 0.48 % 0.90 % 1.00 % 1.57 % 2.24 % 4.14 % 6.41 % 0.77 % Net (recoveries) charge-offs to average loans receivable, net during the period (0.31) % — % — % — % — % — % — % (0.10) % |
Schedule of allowance for loan losses | The following table is provided to disclose additional details for the periods indicated on the Corporation’s allowance for loan losses: For the Quarter Ended For the Six Months Ended December 31, December 31, (Dollars in Thousands) 2022 2021 2022 2021 Allowance at beginning of period $ 5,638 $ 7,413 $ 5,564 $ 7,587 Provision (recovery) for loan losses 191 (1,067) 261 (1,406) Recoveries: Mortgage loans: Single-family 1 262 5 427 Total recoveries 1 262 5 427 Total charge-offs — — — — Net recoveries (charge-offs) 1 262 5 427 Balance at end of period $ 5,830 $ 6,608 $ 5,830 $ 6,608 Allowance for loan losses as a percentage of gross loans held for investment at the end of the period 0.56 % 0.77 % 0.56 % 0.77 % Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period (annualized) (0.00) % (0.12) % (0.00) % (0.10) % Allowance for loan losses as a percentage of gross non-performing loans at the end of the period 561.12 % 196.20 % 561.12 % 196.20 % |
Schedule of recorded investment in non-performing loans | At December 31, 2022 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 981 $ — $ 981 $ (83) $ 898 Without a related allowance (2) 86 (28) 58 — 58 Total single-family loans 1,067 (28) 1,039 (83) 956 Total non-performing loans $ 1,067 $ (28) $ 1,039 $ (83) $ 956 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. At June 30, 2022 Unpaid Related Net Principal Charge-offs Recorded Recorded (In Thousands) Balance Related Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 993 $ — $ 993 $ (85) $ 908 Without a related allowance (2) 548 (33) 515 — 515 Total single-family loans 1,541 (33) 1,508 (85) 1,423 Total non-performing loans $ 1,541 $ (33) $ 1,508 $ (85) $ 1,423 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. |
Schedule of past due status of gross loans held for investment, net of fair value adjustments | December 31, 2022 30-89 Days Past Total Loans Held for (In Thousands) Current Due Non-Accrual (1) Investment, Gross Mortgage loans: Single-family $ 478,691 $ — $ 1,039 $ 479,730 Multi-family 465,350 — — 465,350 Commercial real estate 88,200 — — 88,200 Construction 2,388 — — 2,388 Other 112 — — 112 Commercial business loans 1,358 — — 1,358 Consumer loans 71 4 — 75 Total loans held for investment, gross $ 1,036,170 $ 4 $ 1,039 $ 1,037,213 (1) All loans 90 days or greater past due are placed on non-accrual status. June 30, 2022 30-89 Days Past Total Loans Held for (In Thousands) Current Due Non-Accrual (1) Investment, Gross Mortgage loans: Single-family $ 376,726 $ — $ 1,508 $ 378,234 Multi-family 464,676 — — 464,676 Commercial real estate 90,429 — — 90,429 Construction 3,216 — — 3,216 Other 123 — — 123 Commercial business loans 1,206 — — 1,206 Consumer loans 83 3 — 86 Total loans held for investment, gross $ 936,459 $ 3 $ 1,508 $ 937,970 (1) All loans 90 days or greater past due are placed on non-accrual status. |
Schedule of troubled debt restructurings by nonaccrual versus accrual status | At At (In Thousands) December 31, 2022 June 30, 2022 Restructured loans on non-accrual status: Mortgage loans: Single-family $ 714 $ 722 Total 714 722 Restructured loans on accrual status: Mortgage loans: Single-family 258 3,748 Total 258 3,748 Total restructured loans $ 972 $ 4,470 |
Schedule of recorded investment in restructured loans | At December 31, 2022 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 752 $ — $ 752 $ (38) $ 714 Without a related allowance (2) 258 — 258 — 258 Total single-family 1,010 — 1,010 (38) 972 Total restructured loans $ 1,010 $ — $ 1,010 $ (38) $ 972 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. At June 30, 2022 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 760 $ — $ 760 $ (38) $ 722 Without a related allowance (2) 3,748 — 3,748 — 3,748 Total single-family 4,508 — 4,508 (38) 4,470 Total restructured loans $ 4,508 $ — $ 4,508 $ (38) $ 4,470 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. |
Schedule of Nonperforming Loans on Interest Income | Quarter Ended December 31, 2022 2021 Average Interest Average Interest Recorded Income Recorded Income (In Thousands) Investment Recognized Investment Recognized Without related allowances: Mortgage loans: Single-family $ 59 $ — $ 667 $ 91 59 — 667 91 With related allowances: Mortgage loans: Single-family 984 15 2,283 24 Multi-family — — 1,253 16 984 15 3,536 40 Total $ 1,043 $ 15 $ 4,203 $ 131 Six Months Ended December 31, 2022 2021 Average Interest Average Interest Recorded Income Recorded Income (In Thousands) Investment Recognized Investment Recognized Without related allowances: Mortgage loans: Single-family $ 93 $ — $ 742 $ 231 93 — 742 231 With related allowances: Mortgage loans: Single-family 987 20 4,055 71 Multi-family — — 1,183 31 987 20 5,238 102 Total $ 1,080 $ 20 $ 5,980 $ 333 |
Derivative and Other Financia_2
Derivative and Other Financial Instruments with Off-Balance Sheet Risks (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Derivative and Other Financial Instruments with Off-Balance Sheet Risks | |
Schedule of undisbursed funds commitments | Commitments December 31, 2022 June 30, 2022 (In Thousands) Undisbursed loan funds – Construction loans $ 3,348 $ 3,384 Undisbursed lines of credit – Commercial business loans 834 541 Undisbursed lines of credit – Consumer loans 380 390 Commitments to extend credit on loans to be held for investment 8,415 43,386 Total $ 12,977 $ 47,701 |
Schedule of allowance for loan losses of undisbursed funds and commitments on loans held for investment | For the Quarter Ended For the Six Months Ended December 31, December 31, (In Thousands) 2022 2021 2022 2021 Balance, beginning of the period $ 137 $ 104 $ 130 $ 127 Recovery (66) (5) (59) (28) Balance, end of the period $ 71 $ 99 $ 71 $ 99 |
Schedule of summary of recourse liability | For the Quarter Ended For the Six Months Ended December 31, December 31, Recourse Liability 2022 2021 2022 2021 (In Thousands) Balance, beginning of the period $ 160 $ 200 $ 160 $ 200 Recovery for recourse liability — (40) — (40) Net settlements in lieu of loan repurchases — — — — Balance, end of the period $ 160 $ 160 $ 160 $ 160 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Fair Value of Financial Instruments | |
Schedule of aggregate fair value and aggregate unpaid principal balance of loans held for sale | Aggregate Unpaid Net Aggregate Principal Unrealized (In Thousands) Fair Value Balance Loss As of December 31, 2022: Loans held for investment, at fair value $ 1,345 $ 1,529 $ (184) As of June 30, 2022: Loans held for investment, at fair value $ 1,396 $ 1,569 $ (173) |
Schedule of fair value, assets and liabilities measured on recurring basis | Fair Value Measurement at December 31, 2022 Using: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities - available for sale: U.S. government agency MBS $ — $ 1,533 $ — $ 1,533 U.S. government sponsored enterprise MBS — 742 — 742 Private issue CMO — — 102 102 Investment securities - available for sale — 2,275 102 2,377 Loans held for investment, at fair value — — 1,345 1,345 Interest-only strips — — 9 9 Total assets $ — $ 2,275 $ 1,456 $ 3,731 Liabilities: $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — Fair Value Measurement at June 30, 2022 Using: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities - available for sale: U.S. government agency MBS $ — $ 1,698 $ — $ 1,698 U.S. government sponsored enterprise MBS — 865 — 865 Private issue CMO — — 113 113 Investment securities - available for sale — 2,563 113 2,676 Loans held for investment, at fair value — — 1,396 1,396 Interest-only strips — — 7 7 Total assets $ — $ 2,563 $ 1,516 $ 4,079 Liabilities: $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — |
Schedule for reconciliation of recurring fair value measurements using level 3 inputs | For the Quarter Ended December 31, 2022 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) Private Loans Held For Interest- Issue Investment, at Only (In Thousands) CMO fair value (1) Strips Total Beginning balance at September 30, 2022 $ 107 $ 1,350 $ 7 $ 1,464 Total gains or losses (realized/unrealized): Included in earnings — 15 — 15 Included in other comprehensive income (loss) (3) — 2 (1) Purchases — — — — Issuances — — — — Settlements (2) (20) — (22) Transfers in and/or out of Level 3 — — — — Ending balance at December 31, 2022 $ 102 $ 1,345 $ 9 $ 1,456 (1) The valuation of loans held for investment at fair value includes management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan. For the Quarter Ended December 31, 2021 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) Private Loans Held For Interest- Issue Investment, at Only (In Thousands) CMO fair value Strips Total Beginning balance at September 30, 2021 $ 150 $ 1,577 $ 9 $ 1,736 Total gains or losses (realized/unrealized): Included in earnings — 6 — 6 Included in other comprehensive income (loss) (1) — — (1) Purchases — — — — Issuances — — — — Settlements (3) (28) — (31) Transfers in and/or out of Level 3 — — — — Ending balance at December 31, 2021 $ 146 $ 1,555 $ 9 $ 1,710 For the Six Months Ended December 31, 2022 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) Private Loans Held For Interest- Issue Investment, at Only (In Thousands) CMO fair value Strips Total Beginning balance at June 30, 2022 $ 113 $ 1,396 $ 7 $ 1,516 Total gains or losses (realized/unrealized): Included in earnings — (11) — (11) Included in other comprehensive income (loss) (4) — 2 (2) Purchases — — — — Issuances — — — — Settlements (7) (40) — (47) Transfers in and/or out of Level 3 — — — — Ending balance at December 31, 2022 $ 102 $ 1,345 $ 9 $ 1,456 For the Six Months Ended December 31, 2021 Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) Private Loans Held For Interest- Issue Investment, at Only (In Thousands) CMO fair value Strips Total Beginning balance at June 30, 2021 $ 154 $ 1,874 $ 10 $ 2,038 Total gains or losses (realized/unrealized): Included in earnings — 8 — 8 Included in other comprehensive income (loss) — — (1) (1) Purchases — — — — Issuances — — — — Settlements (8) (327) — (335) Transfers in and/or out of Level 3 — — — — Ending balance at December 31, 2021 $ 146 $ 1,555 $ 9 $ 1,710 |
Schedule of fair value assets measured on nonrecurring basis | Fair Value Measurement at December 31, 2022 Using: (In Thousands) Level 1 Level 2 Level 3 Total Non-performing loans $ — $ 58 $ 898 $ 956 Mortgage servicing assets — — 101 101 Total $ — $ 58 $ 999 $ 1,057 Fair Value Measurement at June 30, 2022 Using: (In Thousands) Level 1 Level 2 Level 3 Total Non-performing loans $ — $ 515 $ 908 $ 1,423 Mortgage servicing assets — — 168 168 Total $ — $ 515 $ 1,076 $ 1,591 |
Schedule of additional information about valuation techniques and inputs used for assets and liabilities | The following table presents additional information about valuation techniques and inputs used for assets and liabilities, which are measured at fair value and categorized within Level 3 as of December 31, 2022: Impact to Fair Value Valuation As of from an December 31, Valuation Range (1) Increase in (Dollars In Thousands) 2022 Techniques Unobservable Inputs (Weighted Average) Inputs (2) Assets: Securities available-for sale: Private issue CMO $ 102 Market comparable pricing Comparability adjustment (6.4%) - (7.4%) (7.2%) Increase Loans held for investment, at fair value $ 1,345 Relative value analysis Broker quotes 88.1% - 98.0% (91.3%) Increase Credit risk factor 1.2% - 6.6% (3.3%) Decrease Non-performing loans (3) $ 714 Discounted cash flow Default rates 5.0% Decrease Non-performing loans (4) $ 184 Relative value analysis Credit risk factor 20.0% Decrease Mortgage servicing assets $ 101 Discounted cash flow Prepayment speed (CPR) 4.6% - 60.0% (8.9%) Decrease Discount rate 9.0% - 10.5% (9.1%) Decrease Interest-only strips $ 9 Discounted cash flow Prepayment speed (CPR) 7.7% - 8.4% (8.4%) Decrease Discount rate 9.0% Decrease Liabilities: None (1) The range is based on the historical estimated fair values and management estimates. (2) Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 asset instruments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements. (3) Consists of restructured loans . (4) Consists of other non-performing loans, excluding restructured loans. |
Schedule of carrying amount and fair value of financial instruments | December 31, 2022 Carrying Fair (In Thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Loans held for investment, not recorded at fair value $ 1,038,992 $ 957,388 $ — $ — $ 957,388 Investment securities - held to maturity $ 168,232 $ 148,419 $ — $ 148,419 $ — FHLB – San Francisco stock $ 8,239 $ 8,239 $ — $ 8,239 $ — Financial liabilities: Deposits $ 945,302 $ 818,882 $ — $ — $ 818,882 Borrowings $ 180,000 $ 178,343 $ — $ — $ 178,343 June 30, 2022 Carrying Fair (In Thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Loans held for investment, not recorded at fair value $ 938,596 $ 892,339 $ — $ — $ 892,339 Investment securities - held to maturity $ 185,745 $ 171,724 $ — $ 171,724 $ — FHLB – San Francisco stock $ 8,239 $ 8,239 $ — $ 8,239 $ — Financial liabilities: Deposits $ 955,504 $ 917,220 $ — $ — $ 917,220 Borrowings $ 85,000 $ 84,299 $ — $ — $ 84,299 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Revenue From Contracts With Customers | |
Schedule of non-interest income disaggregated by type of service | The following table includes the Corporation's non-interest income disaggregated by type of services for the quarters and six months ended December 31, 2022 and 2021: Quarter Ended Six Months Ended December 31, December 31, Type of Services 2022 2021 2022 2021 (In Thousands) Loan servicing and other fees (1) $ 115 $ 444 $ 223 $ 630 Deposit account fees 327 325 670 637 Card and processing fees 367 399 748 804 Other (2) 147 200 318 366 Total non-interest income $ 956 $ 1,368 $ 1,959 $ 2,437 (1) Not within the scope of ASC 606. (2) Includes BOLI of $47 thousand, $48 thousand, $93 thousand and $95 thousand for the quarters and six months ended December 31, 2022 and 2021, respectively , which are not within the scope of ASC 606. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of supplemental information related to operating leases | As of (In Thousands) December 31, 2022 June 30, 2022 Condensed Consolidated Statements of Condition: Premises and equipment - Operating lease right of use assets $ 1,727 $ 1,969 Accounts payable, accrued interest and other liabilities – Operating lease liabilities $ 1,747 $ 1,998 Quarter Ended Six Months Ended December 31, December 31, (In Thousands) 2022 2021 2022 2021 Condensed Consolidated Statements of Operations: Premises and occupancy expenses from operating leases (1) $ 193 $ 195 $ 386 $ 395 Equipment expenses from operating leases $ 23 $ 24 $ 45 $ 47 (1) Includes immaterial variable lease costs. Six Months Ended Six Months Ended (In Thousands) December 31, 2022 December 31, 2021 Condensed Consolidated Statements of Cash Flows: Operating cash flows from operating leases, net $ 437 $ 465 |
Schedule of remaining minimum contractual lease payments and other information associated with leases | Amount (1) Year Ending June 30, (In Thousands) 2023 $ 418 2024 644 2025 467 2026 236 2027 39 Thereafter — Total contract lease payments $ 1,804 Total liability to make lease payments $ 1,747 Difference in undiscounted and discounted future lease payments $ 57 Weighted average discount rate 2.26 % Weighted average remaining lease term (years) 2.6 (1) Contractual base rents do not include property taxes and other operating expenses due under respective lease agreements. |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | ||||
Net income - numerator for basic earnings per share and diluted earnings per share - available to common stockholders | $ 2,371 | $ 2,264 | $ 4,461 | $ 4,931 |
Denominator for basic earnings per share: | ||||
Weighted-average shares | 7,185 | 7,435 | 7,229 | 7,483 |
Denominator for diluted earnings per share: | ||||
Adjusted weighted-average shares and assumed conversions | 7,237 | 7,483 | 7,273 | 7,529 |
Basic earnings per share | $ 0.33 | $ 0.30 | $ 0.62 | $ 0.66 |
Diluted earnings per share | $ 0.33 | $ 0.30 | $ 0.61 | $ 0.65 |
Stock Option | ||||
Denominator for basic earnings per share: | ||||
Effect of dilutive shares | 37 | 39 | ||
Restricted Stock | ||||
Denominator for basic earnings per share: | ||||
Effect of dilutive shares | 52 | 11 | 44 | 7 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options, outstanding | 434,500 | 431,000 |
Restricted stock, outstanding | 147,750 | 99,250 |
Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options exercisable | 434,000 | 130,000 |
Investment Securities - Schedul
Investment Securities - Schedule of amortized cost and estimated fair value of Held to maturity investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | |
Held to maturity | |||
Amortized Cost | $ 168,232 | $ 185,745 | |
Gross Unrealized Gains | 0 | 74 | |
Gross Unrealized (Losses) | (19,813) | (14,095) | |
Estimated Fair Value | 148,419 | 171,724 | |
Carrying Value | 168,232 | 185,745 | |
U.S. government sponsored enterprise MBS | |||
Held to maturity | |||
Amortized Cost | 163,612 | [1] | 180,492 |
Gross Unrealized Gains | 0 | [1] | 63 |
Gross Unrealized (Losses) | (19,500) | [1] | (13,945) |
Estimated Fair Value | 144,112 | [1] | 166,610 |
U.S. government sponsored enterprise CMO | |||
Held to maturity | |||
Amortized Cost | 3,907 | [2] | 3,913 |
Gross Unrealized Gains | 0 | [2] | 0 |
Gross Unrealized (Losses) | (313) | [2] | (150) |
Estimated Fair Value | 3,594 | [2] | 3,763 |
U.S. SBA securities | |||
Held to maturity | |||
Amortized Cost | 713 | [3] | 940 |
Gross Unrealized Gains | 0 | [3] | 11 |
Gross Unrealized (Losses) | 0 | [3] | 0 |
Estimated Fair Value | $ 713 | [3] | 951 |
Certificate of deposits | |||
Held to maturity | |||
Amortized Cost | 400 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized (Losses) | 0 | ||
Estimated Fair Value | $ 400 | ||
[1]Mortgage-Backed Securities (“MBS”).[2]Collateralized Mortgage Obligations (“CMO”).[3]Small Business Administration (“SBA”). |
Investment Securities - Sched_2
Investment Securities - Schedule of amortized cost and estimated fair value of Available for sale securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | |
Available for sale | |||
Amortized Cost | $ 2,433 | $ 2,681 | |
Gross Unrealized Gains | 0 | 10 | |
Gross Unrealized (Losses) | (56) | (15) | |
Estimated Fair Value | 2,377 | 2,676 | |
U.S. government agency MBS | |||
Available for sale | |||
Amortized Cost | 1,569 | 1,698 | |
Gross Unrealized Gains | 0 | 6 | |
Gross Unrealized (Losses) | (36) | (6) | |
Estimated Fair Value | 1,533 | 1,698 | |
U.S. government sponsored enterprise MBS | |||
Available for sale | |||
Amortized Cost | 754 | 865 | |
Gross Unrealized Gains | 0 | 4 | |
Gross Unrealized (Losses) | (12) | (4) | |
Estimated Fair Value | 742 | 865 | |
Private issue CMO | |||
Available for sale | |||
Amortized Cost | 110 | [1] | 118 |
Gross Unrealized Gains | 0 | [1] | 0 |
Gross Unrealized (Losses) | (8) | [1] | (5) |
Estimated Fair Value | $ 102 | [1] | $ 113 |
[1]Collateralized Mortgage Obligations (“CMO”). |
Investment Securities - Total i
Investment Securities - Total investment securities for amortized cost and estimated fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Investment Securities | ||
Amortized Cost | $ 170,665 | $ 188,426 |
Gross Unrealized Gains | 0 | 84 |
Gross Unrealized (Losses) | (19,869) | (14,110) |
Estimated Fair Value | 150,796 | 174,400 |
Carrying Value | $ 170,609 | $ 188,421 |
Investment Securities - Investm
Investment Securities - Investments with Unrealized Loss Positions for Held to maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Unrealized Holding Losses Less Than 12 Months, Fair Value | $ 19,528 | $ 125,608 |
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 682 | 9,168 |
Unrealized Holding Losses 12 Months or More, Fair Value | 128,178 | 35,528 |
Unrealized Holding Losses 12 Months or More, Unrealized Losses | 19,131 | 4,927 |
Unrealized Holding Losses Total, Fair Value | 147,706 | 161,136 |
Unrealized Holding Losses Total, Unrealized Losses | 19,813 | 14,095 |
U.S. government sponsored enterprise MBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Unrealized Holding Losses Less Than 12 Months, Fair Value | 15,934 | 121,844 |
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 369 | 9,018 |
Unrealized Holding Losses 12 Months or More, Fair Value | 128,178 | 35,528 |
Unrealized Holding Losses 12 Months or More, Unrealized Losses | 19,131 | 4,927 |
Unrealized Holding Losses Total, Fair Value | 144,112 | 157,372 |
Unrealized Holding Losses Total, Unrealized Losses | 19,500 | 13,945 |
U.S. government sponsored enterprise CMO | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Unrealized Holding Losses Less Than 12 Months, Fair Value | 3,594 | 3,764 |
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 313 | 150 |
Unrealized Holding Losses Total, Fair Value | 3,594 | 3,764 |
Unrealized Holding Losses Total, Unrealized Losses | $ 313 | $ 150 |
Investment Securities - Inves_2
Investment Securities - Investments with Unrealized Loss Positions for Available for sale (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Holding Losses, Less Than 12 Months, Fair Value | 2,304 | 1,610 |
Unrealized Holding Losses, Less Than 12 Months, Unrealized Losses | $ 55 | $ 15 |
Unrealized Holding Losses, 12 Months or More, Fair Value | 22 | |
Unrealized Holding Losses, 12 Months or More, Unrealized Losses | 1 | |
Unrealized Holding Losses Total, Fair Value | 2,326 | 1,610 |
Unrealized Holding Losses Total, Unrealized Losses | $ 56 | $ 15 |
Private Issue CMO | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Holding Losses, Less Than 12 Months, Fair Value | 113 | |
Unrealized Holding Losses, Less Than 12 Months, Unrealized Losses | $ 5 | |
Unrealized Holding Losses Total, Fair Value | 113 | |
Unrealized Holding Losses Total, Unrealized Losses | $ 5 | |
U.S. government agency MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Holding Losses, Less Than 12 Months, Fair Value | 1,533 | 826 |
Unrealized Holding Losses, Less Than 12 Months, Unrealized Losses | $ 36 | $ 6 |
Unrealized Holding Losses Total, Fair Value | 1,533 | 826 |
Unrealized Holding Losses Total, Unrealized Losses | $ 36 | $ 6 |
U.S. government sponsored enterprise MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Holding Losses, Less Than 12 Months, Fair Value | 669 | 671 |
Unrealized Holding Losses, Less Than 12 Months, Unrealized Losses | $ 11 | $ 4 |
Unrealized Holding Losses, 12 Months or More, Fair Value | 22 | |
Unrealized Holding Losses, 12 Months or More, Unrealized Losses | 1 | |
Unrealized Holding Losses Total, Fair Value | 691 | 671 |
Unrealized Holding Losses Total, Unrealized Losses | $ 12 | $ 4 |
Private issue CMO | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Holding Losses, Less Than 12 Months, Fair Value | 102 | |
Unrealized Holding Losses, Less Than 12 Months, Unrealized Losses | $ 8 | |
Unrealized Holding Losses Total, Fair Value | 102 | |
Unrealized Holding Losses Total, Unrealized Losses | $ 8 |
Investment Securities - Inves_3
Investment Securities - Investments with Unrealized Loss Positions for total investment securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Investment Securities | ||
Unrealized Holding Losses Less Than 12 Months, Fair Value | $ 21,832 | $ 127,218 |
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 737 | 9,183 |
Unrealized Holding Losses 12 Months or More, Fair Value | 128,200 | 35,528 |
Unrealized Holding Losses 12 Months or More, Unrealized Losses | 19,132 | 4,927 |
Unrealized Holding Losses Total, Fair Value | 150,032 | 162,746 |
Unrealized Holding Losses Total, Unrealized Losses | $ 19,869 | $ 14,110 |
Investment Securities - Sched_3
Investment Securities - Schedule of Held to maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Held to maturity, Amortized Cost | ||
Due in one year or less | $ 1,209 | $ 1,427 |
Due after one through five years | 7,405 | 10,908 |
Due after five through ten years | 69,583 | 77,167 |
Due after ten years | 90,035 | 96,243 |
Total investment securities - held to maturity, Amortized Cost | 168,232 | 185,745 |
Held to maturity, Estimated Fair Value | ||
Due in one year or less | 1,198 | 1,425 |
Due after one through five years | 7,129 | 10,805 |
Due after five through ten years | 62,622 | 72,625 |
Due after ten years | 77,470 | 86,869 |
Total investment securities - held to maturity, Estimated Fair Value | $ 148,419 | $ 171,724 |
Investment Securities - Sched_4
Investment Securities - Schedule of Available for Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Available for sale, Amortized Cost | ||
Due in one year or less | $ 0 | $ 0 |
Due after one through five years | 0 | 0 |
Due after five through ten years | 233 | 98 |
Due after ten years | 2,200 | 2,583 |
Total investment securities - available for sale, Amortized Cost | 2,433 | 2,681 |
Amortized Cost | 170,665 | 188,426 |
Available for sale, Estimated Fair Value | ||
Due in one year or less | 0 | 0 |
Due after one through five years | 0 | 0 |
Due after five through ten years | 229 | 98 |
Due after ten years | 2,148 | 2,578 |
Total investment securities - available for sale, Estimated Fair Value | 2,377 | 2,676 |
Estimated Fair Value | $ 150,796 | $ 174,400 |
Investment Securities - Mortgag
Investment Securities - Mortgage Backed Securities Policy (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Unrealized Holding Losses Total, Unrealized Losses | $ 19,869 | $ 19,869 | $ 14,110 | ||
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 737 | 737 | 9,183 | ||
Unrealized Holding Losses 12 Months or More, Unrealized Losses | 19,131 | 19,131 | 4,927 | ||
U.S. government sponsored enterprise MBS | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Principal payments from investment securities available for sale | 7,600 | $ 15,500 | 16,900 | $ 32,500 | |
Proceeds from sale of investment securities available for sale | 0 | 0 | 0 | 0 | |
Payments to acquire Mortgage Backed Securities (MBS) categorized as Held-to-maturity | $ 15,000 | $ 15,000 | |||
Unrealized Holding Losses 12 Months or More, Unrealized Losses | $ 19,131 | $ 19,131 | $ 4,927 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Investments with an unrealized loss position | $ 19,813 | $ 19,813 | $ 14,095 | ||
Unrealized holding losses, 12 months or more | 19,131 | 19,131 | 4,927 | ||
Unrealized Holding Losses Total, Unrealized Losses | 19,869 | 19,869 | 14,110 | ||
U.S. government sponsored enterprise CMO | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Investments with an unrealized loss position | 313 | 313 | 150 | ||
U.S. government sponsored enterprise MBS | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Principal payments from investment securities available for sale | 7,600 | $ 15,500 | 16,900 | $ 32,500 | |
Payments to acquire Mortgage Backed Securities (MBS) categorized as Held-to-maturity | $ 15,000 | $ 15,000 | |||
Investments with an unrealized loss position | 19,500 | 19,500 | 13,945 | ||
Unrealized holding losses, 12 months or more | $ 19,131 | $ 19,131 | $ 4,927 |
Loans Held for Investment - Sch
Loans Held for Investment - Schedule of Loans Held for Investment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for investment, gross | $ 1,037,213 | $ 937,970 | ||||
Advance payments of escrows | 176 | 47 | ||||
Deferred loan costs, net | 8,778 | 7,539 | ||||
Allowance for loan losses | (5,830) | $ (5,638) | (5,564) | $ (6,608) | $ (7,413) | $ (7,587) |
Total loans held for investment, net | 1,040,337 | 939,992 | ||||
Undisbursed loan funds | 3,800 | 4,100 | ||||
Mortgage loans, Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (847) | (806) | (816) | (915) | (967) | (1,006) |
Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (17) | $ (22) | (23) | $ (55) | $ (49) | $ (51) |
Mortgage loans, Single-family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for investment, gross | 479,730 | 378,234 | ||||
Mortgage Loans, Multi Family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for investment, gross | 465,350 | 464,676 | ||||
Mortgage loans, Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for investment, gross | 88,200 | 90,429 | ||||
Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for investment, gross | 2,388 | 3,216 | ||||
Mortgage Loans Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for investment, gross | 112 | 123 | ||||
Consumer loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for investment, gross | 75 | 86 | ||||
Commercial business loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans held for investment, gross | $ 1,358 | $ 1,206 |
Loans Held for Investment - S_2
Loans Held for Investment - Schedule of Loans Held for Investment Contractually Repricing (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | $ 112,904 | |
Total loans held for investment, gross | 1,037,213 | $ 937,970 |
Mortgage loans, Single-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 109,546 | |
Total loans held for investment, gross | 479,730 | 378,234 |
Mortgage Loans, Multi Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 149 | |
Total loans held for investment, gross | 465,350 | 464,676 |
Mortgage loans, Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 1,310 | |
Total loans held for investment, gross | 88,200 | 90,429 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 1,720 | |
Total loans held for investment, gross | 2,388 | 3,216 |
Mortgage Loans Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 112 | |
Total loans held for investment, gross | 112 | 123 |
Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 67 | |
Total loans held for investment, gross | 1,358 | 1,206 |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 0 | |
Total loans held for investment, gross | 75 | $ 86 |
Within One Year [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 226,857 | |
Within One Year [Member] | Mortgage loans, Single-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 50,448 | |
Within One Year [Member] | Mortgage Loans, Multi Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 134,058 | |
Within One Year [Member] | Mortgage loans, Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 40,491 | |
Within One Year [Member] | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 494 | |
Within One Year [Member] | Mortgage Loans Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
Within One Year [Member] | Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 1,291 | |
Within One Year [Member] | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 75 | |
After One Year Through 3 Years [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 170,411 | |
After One Year Through 3 Years [Member] | Mortgage loans, Single-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 21,760 | |
After One Year Through 3 Years [Member] | Mortgage Loans, Multi Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 131,757 | |
After One Year Through 3 Years [Member] | Mortgage loans, Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 16,720 | |
After One Year Through 3 Years [Member] | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 174 | |
After One Year Through 3 Years [Member] | Mortgage Loans Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After One Year Through 3 Years [Member] | Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After One Year Through 3 Years [Member] | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 3 Years Through 5 Years [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 223,656 | |
After 3 Years Through 5 Years [Member] | Mortgage loans, Single-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 45,263 | |
After 3 Years Through 5 Years [Member] | Mortgage Loans, Multi Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 148,714 | |
After 3 Years Through 5 Years [Member] | Mortgage loans, Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 29,679 | |
After 3 Years Through 5 Years [Member] | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 3 Years Through 5 Years [Member] | Mortgage Loans Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 3 Years Through 5 Years [Member] | Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 3 Years Through 5 Years [Member] | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 5 Years Through 10 Years [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 303,385 | |
After 5 Years Through 10 Years [Member] | Mortgage loans, Single-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 252,713 | |
After 5 Years Through 10 Years [Member] | Mortgage Loans, Multi Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 50,672 | |
After 5 Years Through 10 Years [Member] | Mortgage loans, Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 5 Years Through 10 Years [Member] | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 5 Years Through 10 Years [Member] | Mortgage Loans Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 5 Years Through 10 Years [Member] | Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 5 Years Through 10 Years [Member] | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | $ 0 |
Loans Held for Investment - S_3
Loans Held for Investment - Schedule of Gross Loans Held for Investment by Loan Types and Risk Category (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Loans and Leases Receivable, Gross | $ 1,037,213 | $ 937,970 |
Mortgage loans, Single-family | ||
Loans and Leases Receivable, Gross | 479,730 | 378,234 |
Mortgage Loans, Multi Family | ||
Loans and Leases Receivable, Gross | 465,350 | 464,676 |
Mortgage loans, Commercial real estate | ||
Loans and Leases Receivable, Gross | 88,200 | 90,429 |
Construction | ||
Loans and Leases Receivable, Gross | 2,388 | 3,216 |
Mortgage Loans Other | ||
Loans and Leases Receivable, Gross | 112 | 123 |
Commercial business loans | ||
Loans and Leases Receivable, Gross | 1,358 | 1,206 |
Consumer loans | ||
Loans and Leases Receivable, Gross | 75 | 86 |
Pass | ||
Loans and Leases Receivable, Gross | 1,035,108 | 936,238 |
Pass | Mortgage loans, Single-family | ||
Loans and Leases Receivable, Gross | 478,691 | 376,502 |
Pass | Mortgage Loans, Multi Family | ||
Loans and Leases Receivable, Gross | 464,836 | 464,676 |
Pass | Mortgage loans, Commercial real estate | ||
Loans and Leases Receivable, Gross | 87,648 | 90,429 |
Pass | Construction | ||
Loans and Leases Receivable, Gross | 2,388 | 3,216 |
Pass | Mortgage Loans Other | ||
Loans and Leases Receivable, Gross | 112 | 123 |
Pass | Commercial business loans | ||
Loans and Leases Receivable, Gross | 1,358 | 1,206 |
Pass | Consumer loans | ||
Loans and Leases Receivable, Gross | 75 | 86 |
Special Mention | ||
Loans and Leases Receivable, Gross | 514 | 224 |
Special Mention | Mortgage loans, Single-family | ||
Loans and Leases Receivable, Gross | 224 | |
Special Mention | Mortgage Loans, Multi Family | ||
Loans and Leases Receivable, Gross | 514 | 0 |
Special Mention | Mortgage loans, Commercial real estate | ||
Loans and Leases Receivable, Gross | 0 | |
Special Mention | Construction | ||
Loans and Leases Receivable, Gross | 0 | |
Special Mention | Mortgage Loans Other | ||
Loans and Leases Receivable, Gross | 0 | |
Special Mention | Commercial business loans | ||
Loans and Leases Receivable, Gross | 0 | |
Special Mention | Consumer loans | ||
Loans and Leases Receivable, Gross | 0 | |
Substandard | ||
Loans and Leases Receivable, Gross | 1,591 | 1,508 |
Substandard | Mortgage loans, Single-family | ||
Loans and Leases Receivable, Gross | 1,039 | 1,508 |
Substandard | Mortgage Loans, Multi Family | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Substandard | Mortgage loans, Commercial real estate | ||
Loans and Leases Receivable, Gross | 552 | 0 |
Substandard | Construction | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Substandard | Mortgage Loans Other | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Substandard | Commercial business loans | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Substandard | Consumer loans | ||
Loans and Leases Receivable, Gross | $ 0 | $ 0 |
Loans Held for Investment - S_4
Loans Held for Investment - Schedule of Allowance For Loan Losses and Recorded Investment in Gross Loans, by Portfolio Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of the year | $ 5,638 | $ 7,413 | $ 5,564 | $ 7,587 |
Provision (recovery) for loan losses | 191 | (1,067) | 261 | (1,406) |
Recoveries | 1 | 262 | 5 | 427 |
Charge-offs | 0 | 0 | 0 | 0 |
Net recoveries (charge-offs) | 1 | 262 | 5 | 427 |
Allowance for loan losses, end of the year | 5,830 | 6,608 | 5,830 | 6,608 |
Individually evaluated for allowances | 38 | 52 | 38 | 52 |
Collectively evaluated for allowances | 5,792 | 6,556 | 5,792 | 6,556 |
Individually evaluated for allowances | 810 | 1,583 | 810 | 1,583 |
Collectively evaluated for allowances | 1,036,403 | 850,440 | 1,036,403 | 850,440 |
Total Loans Held for Investment, Gross | $ 1,037,213 | $ 852,023 | $ 1,037,213 | $ 852,023 |
Allowance for loan losses as a percentage of gross loans held for investment | 0.56% | 0.77% | 0.56% | 0.77% |
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period | 0% | (0.12%) | 0% | (0.10%) |
Allowance for loan losses as a percentage of gross non-performing loans | 561.12% | 196.20% | 561.12% | 196.20% |
Mortgage loans, Single-family | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of the year | $ 1,450 | $ 1,827 | $ 1,383 | $ 2,000 |
Provision (recovery) for loan losses | 149 | (693) | 212 | (1,031) |
Recoveries | 1 | 262 | 5 | 427 |
Charge-offs | 0 | 0 | ||
Allowance for loan losses, end of the year | 1,600 | 1,396 | 1,600 | 1,396 |
Individually evaluated for allowances | 38 | 52 | 38 | 52 |
Collectively evaluated for allowances | 1,562 | 1,344 | 1,562 | 1,344 |
Individually evaluated for allowances | 810 | 1,583 | 810 | 1,583 |
Collectively evaluated for allowances | 478,920 | 288,662 | 478,920 | 288,662 |
Total Loans Held for Investment, Gross | $ 479,730 | $ 290,245 | $ 479,730 | $ 290,245 |
Allowance for loan losses as a percentage of gross loans held for investment | 0.33% | 0.48% | 0.33% | 0.48% |
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period | 0% | (0.37%) | 0% | (0.31%) |
Mortgage Loans, Multi Family | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of the year | $ 3,305 | $ 4,525 | $ 3,282 | $ 4,485 |
Provision (recovery) for loan losses | (5) | (306) | 18 | (266) |
Recoveries | 0 | 0 | ||
Charge-offs | 0 | 0 | ||
Allowance for loan losses, end of the year | 3,300 | 4,219 | 3,300 | 4,219 |
Collectively evaluated for allowances | 3,300 | 4,219 | 3,300 | 4,219 |
Collectively evaluated for allowances | 465,350 | 466,467 | 465,350 | 466,467 |
Total Loans Held for Investment, Gross | $ 465,350 | $ 466,467 | $ 465,350 | $ 466,467 |
Allowance for loan losses as a percentage of gross loans held for investment | 0.71% | 0.90% | 0.71% | 0.90% |
Mortgage loans, Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of the year | $ 806 | $ 967 | $ 816 | $ 1,006 |
Provision (recovery) for loan losses | 41 | (52) | 31 | (91) |
Recoveries | 0 | 0 | ||
Charge-offs | 0 | 0 | ||
Allowance for loan losses, end of the year | 847 | 915 | 847 | 915 |
Collectively evaluated for allowances | 847 | 915 | 847 | 915 |
Collectively evaluated for allowances | 88,200 | 91,236 | 88,200 | 91,236 |
Total Loans Held for Investment, Gross | $ 88,200 | $ 91,236 | $ 88,200 | $ 91,236 |
Allowance for loan losses as a percentage of gross loans held for investment | 0.96% | 1% | 0.96% | 1% |
Construction | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of the year | $ 22 | $ 49 | $ 23 | $ 51 |
Provision (recovery) for loan losses | (5) | 6 | (6) | 4 |
Recoveries | 0 | 0 | ||
Charge-offs | 0 | 0 | ||
Allowance for loan losses, end of the year | 17 | 55 | 17 | 55 |
Collectively evaluated for allowances | 17 | 55 | 17 | 55 |
Collectively evaluated for allowances | 2,388 | 3,501 | 2,388 | 3,501 |
Total Loans Held for Investment, Gross | $ 2,388 | $ 3,501 | $ 2,388 | $ 3,501 |
Allowance for loan losses as a percentage of gross loans held for investment | 0.71% | 1.57% | 0.71% | 1.57% |
Mortgage Loans Other | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of the year | $ 3 | $ 3 | $ 3 | $ 3 |
Provision (recovery) for loan losses | 0 | |||
Recoveries | 0 | 0 | ||
Charge-offs | 0 | 0 | ||
Allowance for loan losses, end of the year | 3 | 3 | 3 | 3 |
Collectively evaluated for allowances | 3 | 3 | 3 | 3 |
Collectively evaluated for allowances | 112 | 134 | 112 | 134 |
Total Loans Held for Investment, Gross | $ 112 | $ 134 | $ 112 | $ 134 |
Allowance for loan losses as a percentage of gross loans held for investment | 2.68% | 2.24% | 2.68% | 2.24% |
Commercial business loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of the year | $ 48 | $ 37 | $ 52 | $ 36 |
Provision (recovery) for loan losses | 10 | (22) | 6 | (21) |
Recoveries | 0 | 0 | ||
Charge-offs | 0 | 0 | ||
Allowance for loan losses, end of the year | 58 | 15 | 58 | 15 |
Collectively evaluated for allowances | 58 | 15 | 58 | 15 |
Collectively evaluated for allowances | 1,358 | 362 | 1,358 | 362 |
Total Loans Held for Investment, Gross | $ 1,358 | $ 362 | $ 1,358 | $ 362 |
Allowance for loan losses as a percentage of gross loans held for investment | 4.27% | 4.14% | 4.27% | 4.14% |
Consumer loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of the year | $ 4 | $ 5 | $ 5 | $ 6 |
Provision (recovery) for loan losses | 1 | (1) | ||
Recoveries | 0 | 0 | ||
Charge-offs | 0 | 0 | ||
Allowance for loan losses, end of the year | 5 | 5 | 5 | 5 |
Collectively evaluated for allowances | 5 | 5 | 5 | 5 |
Collectively evaluated for allowances | 75 | 78 | 75 | 78 |
Total Loans Held for Investment, Gross | $ 75 | $ 78 | $ 75 | $ 78 |
Allowance for loan losses as a percentage of gross loans held for investment | 6.67% | 6.41% | 6.67% | 6.41% |
Loans Held for Investment - S_5
Loans Held for Investment - Schedule of Past Due Status of Loans Held for Investment, Gross (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Jun. 30, 2022 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans deemed uncollectible, period of delinquency | 90 days | 90 days |
Non-accrual | $ 1,039 | $ 1,508 |
Total loans held for investment, gross | 1,037,213 | 937,970 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 1,036,170 | 936,459 |
30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 4 | 3 |
Mortgage loans, Single-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 1,039 | 1,508 |
Total loans held for investment, gross | 479,730 | 378,234 |
Mortgage loans, Single-family | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 478,691 | 376,726 |
Mortgage loans, Single-family | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Mortgage Loans, Multi Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Total loans held for investment, gross | 465,350 | 464,676 |
Mortgage Loans, Multi Family | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 465,350 | 464,676 |
Mortgage Loans, Multi Family | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Mortgage loans, Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Total loans held for investment, gross | 88,200 | 90,429 |
Mortgage loans, Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 88,200 | 90,429 |
Mortgage loans, Commercial real estate | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Total loans held for investment, gross | 2,388 | 3,216 |
Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 2,388 | 3,216 |
Construction | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Mortgage Loans Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Total loans held for investment, gross | 112 | 123 |
Mortgage Loans Other | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 112 | 123 |
Mortgage Loans Other | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Commercial business loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Total loans held for investment, gross | 1,358 | 1,206 |
Commercial business loans | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 1,358 | 1,206 |
Commercial business loans | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Total loans held for investment, gross | 75 | 86 |
Consumer loans | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 71 | 83 |
Consumer loans | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | $ 4 | $ 3 |
Bankruptcy [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans deemed uncollectible, period of delinquency | 60 days | |
Troubled Debt Restructurings [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans deemed uncollectible, period of delinquency | 90 days | |
Commercial Real Estate Or Second Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans deemed uncollectible, period of delinquency | 120 days |
Loans Held For Investment - All
Loans Held For Investment - Allowance Roll-forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loans Held for Investment | ||||
Allowance for loan losses, beginning of the year | $ 5,638 | $ 7,413 | $ 5,564 | $ 7,587 |
Recovery | 191 | (1,067) | 261 | (1,406) |
Total recoveries | 1 | 262 | 5 | 427 |
Total charge-offs | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of the year | $ 5,830 | $ 6,608 | $ 5,830 | $ 6,608 |
Loans Held for Investment - S_6
Loans Held for Investment - Schedule of Total Recorded Investment in Non-Performing Loans by Type (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | $ 1,067,000 | $ 1,067,000 | $ 1,541,000 | ||
Related Charge-Offs | (28,000) | (28,000) | (33,000) | ||
Recorded Investment | 1,039,000 | 1,039,000 | 1,508,000 | ||
Related Allowance | (83,000) | (83,000) | (85,000) | ||
Recorded Investment, Net of Allowance | 956,000 | 956,000 | 1,423,000 | ||
With related allowances, Average Recorded Investment | 984,000 | $ 3,536,000 | 987,000 | $ 5,238,000 | |
Without related allowances, Average Recorded Investment | 59,000 | 667,000 | 93,000 | 742,000 | |
Average Recorded Investment | 1,043,000 | 4,203,000 | 1,080,000 | 5,980,000 | |
Interest income recognized with a related allowance | 15,000 | 40,000 | 20,000 | 102,000 | |
Interest income recognized without a related allowance | 0 | 91,000 | 231,000 | ||
Total interest income recognized | 15,000 | 131,000 | 20,000 | 333,000 | |
Mortgage loans, Single-family | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
With related allowances, Average Recorded Investment | 984,000 | 2,283,000 | 987,000 | 4,055,000 | |
Without related allowances, Average Recorded Investment | 59,000 | 667,000 | 93,000 | 742,000 | |
Interest income recognized with a related allowance | 15,000 | 24,000 | 20,000 | 71,000 | |
Interest income recognized without a related allowance | 0 | 91,000 | 231,000 | ||
Mortgage Loans, Multi Family | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
With related allowances, Average Recorded Investment | 1,183,000 | ||||
Interest income recognized with a related allowance | $ 31,000 | ||||
Mortgage loans, Single-family | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
With a related allowance Unpaid Principal Balance | 981,000 | 981,000 | 993,000 | ||
Without a related allowance, Unpaid Principal Balance | 86,000 | 86,000 | 548,000 | ||
Unpaid Principal Balance | 1,067,000 | 1,067,000 | 1,541,000 | ||
With Related Allowance, Related Charge-Offs | 0 | 0 | 0 | ||
With No Related Allowance, Related Charge-Offs | (28,000) | (28,000) | (33,000) | ||
Related Charge-Offs | (28,000) | (28,000) | (33,000) | ||
With Related Allowance, Recorded Investment | 981,000 | 981,000 | 993,000 | ||
With No Related Allowance, Recorded Investment | 58,000 | 58,000 | 515,000 | ||
Recorded Investment | 1,039,000 | 1,039,000 | 1,508,000 | ||
Related Allowance | (83,000) | (83,000) | (85,000) | ||
Recorded Investment, with Related Allowance, Net | 898,000 | 898,000 | 908,000 | ||
Recorded Investment, with No Related Allowance, Net | 58,000 | 58,000 | 515,000 | ||
Recorded Investment, Net of Allowance | 956,000 | $ 956,000 | $ 1,423,000 | ||
Mortgage Loans, Multi Family | Mortgage Loans, Multi Family | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
With related allowances, Average Recorded Investment | 0 | 1,253,000 | |||
Interest income recognized with a related allowance | $ 0 | $ 16,000 |
Loans Held for Investment - S_7
Loans Held for Investment - Schedule of Restructured Loan Balances, Net of Allowance for Loan Losses, by Loan type and by Nonaccrual Versus Accrual Status (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Jun. 30, 2022 | |
Financing Receivable, Modifications [Line Items] | ||
Restructured loans on non-accrual status | $ 714 | $ 722 |
Restructured loans on accrual status | 258 | 3,748 |
Total restructured loans | 972 | 4,470 |
Mortgage loans, Single-family | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured loans on non-accrual status | 714 | 722 |
Restructured loans on accrual status | $ 258 | $ 3,748 |
Loans Held for Investment - S_8
Loans Held for Investment - Schedule of Restructured Loans by Type, Net of Individually Evaluated Allowances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Financing Receivable, Impaired [Line Items] | ||
Restructured Loans, Allowance for Loan Losses | $ (38) | $ (38) |
Restructured Loans, Unpaid Principal Balance | 1,010 | 4,508 |
Restructured Loans, Related Charge-offs | 0 | 0 |
Restructured Loans, Recorded Investment | 1,010 | 4,508 |
Restructured loans, net investment | 972 | 4,470 |
Mortgage loans, Single-family | ||
Financing Receivable, Impaired [Line Items] | ||
Restructured Loans, With Related Allowance, Unpaid Principal Balance | 752 | 760 |
Restructured Loans, With Related Allowance, Related Charge-offs | 0 | 0 |
Restructured Loans, With a Related Allowance, Recorded Investment | 752 | 760 |
Restructured Loans, Allowance for Loan Losses | (38) | (38) |
Restructured loans, with a related allowance, net investment | 714 | 722 |
Restructured Loans, Without a Related Allowance, Unpaid Principal Balance | 258 | 3,748 |
Restructured Loans, Without a Related Allowance, Related Charge-offs | 0 | 0 |
Restructured Loans, Without a Related Allowance, Recorded Investment | 258 | 3,748 |
Restructured Loans, Without a Related Allowance, Net Investment | 258 | 3,748 |
Restructured Loans, Unpaid Principal Balance | 1,010 | 4,508 |
Restructured Loans, Related Charge-offs | 0 | 0 |
Restructured Loans, Recorded Investment | 1,010 | 4,508 |
Restructured loans, net investment | $ 972 | $ 4,470 |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Dec. 31, 2022 USD ($) loan property | Dec. 31, 2021 USD ($) loan property | Jun. 30, 2022 USD ($) loan | |
Fixed-rate loans as a percentage of total loans held for investment | 11% | 11% | 11% | ||
Loans deemed uncollectible, period of delinquency | 90 days | 90 days | |||
Restructured loans amount | $ 972,000 | $ 4,470,000 | |||
Loans held for investment | $ 1,037,213,000 | 1,037,213,000 | $ 937,970,000 | ||
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | 0 | |||
Total interest payments received | 16,000 | $ 138,000 | 23,000 | $ 349,000 | |
Non-performing loans interest recognized as principal payments, cost basis | 1,000 | 7,000 | 3,000 | 16,000 | |
Interest income, non-performing loans, cash basis | 15,000 | 131,000 | 20,000 | 333,000 | |
Average investment in non-performing loans | $ 1,043,000 | $ 4,203,000 | $ 1,080,000 | $ 5,980,000 | |
Number of loans newly restructured | loan | 0 | 0 | |||
Number of modified loans | loan | 2 | 13 | |||
Number of loans downgraded | loan | 7 | ||||
Restructured Loans, Number of Loans Paid off | loan | 1 | 4 | |||
Number of restructured loans | loan | 0 | 0 | 0 | 0 | |
Restructured loans on non-accrual status | $ 1,039,000 | $ 1,039,000 | $ 1,508,000 | ||
Number of Properties Acquired in Settlement of Loans | property | 0 | 0 | |||
Number of Previously Foreclosed Properties Sold | property | 0 | 0 | |||
First Trust Deed Loans | |||||
Loans deemed uncollectible, period of delinquency | 150 days | ||||
Mortgage loans, Commercial real estate | |||||
Restructured loans on non-accrual status | 0 | $ 0 | 0 | ||
Mortgage loans, Single-family | |||||
Restructured loans on non-accrual status | 1,039,000 | 1,039,000 | 1,508,000 | ||
Commercial business loans | |||||
Restructured loans on non-accrual status | 0 | $ 0 | 0 | ||
Bankruptcy [Member] | |||||
Loans deemed uncollectible, period of delinquency | 60 days | ||||
Troubled Debt Restructurings [Member] | |||||
Loans deemed uncollectible, period of delinquency | 90 days | ||||
Loans held for investment | 4,500,000 | ||||
Commercial Real Estate Or Second Mortgage [Member] | |||||
Loans deemed uncollectible, period of delinquency | 120 days | ||||
Restructured loans on accrual status | |||||
Loans held for investment | 972,000 | $ 972,000 | |||
Maximum | |||||
Segregated restructured loans, period of delinquency | 90 days | ||||
Maximum | Bankruptcy [Member] | |||||
Allowance for loan losses, pooling method, period of delinquency | 60 days | ||||
Substandard | |||||
Loans held for investment | 1,591,000 | $ 1,591,000 | 1,508,000 | ||
Substandard | Restructured loans on non-accrual status | |||||
Loans held for investment | 714,000 | $ 714,000 | $ 722,000,000,000 | ||
Number of modified loans | loan | 1 | 1 | |||
Pass | |||||
Loans held for investment | 1,035,108,000 | $ 1,035,108,000 | $ 936,238,000 | ||
Number of loans newly restructured | loan | 14 | ||||
Number of loans upgraded | loan | 10 | 10 | |||
Restructured Loans, Number of Loans Paid off | loan | 3 | ||||
Special Mention | |||||
Loans held for investment | 514,000 | $ 514,000 | 224,000 | ||
Interest income | |||||
Interest income, non-performing loans, cash basis | $ 131,000 | ||||
Mortgage loans, Single-family | |||||
Loans held for investment | 479,730,000 | 479,730,000 | 378,234,000 | ||
Mortgage loans, Single-family | Substandard | |||||
Loans held for investment | 1,039,000 | 1,039,000 | 1,508,000 | ||
Mortgage loans, Single-family | Pass | |||||
Loans held for investment | 478,691,000 | 478,691,000 | 376,502,000 | ||
Mortgage loans, Single-family | Special Mention | |||||
Loans held for investment | 224,000 | ||||
Mortgage Loans, Multi Family | |||||
Loans held for investment | 465,350,000 | 465,350,000 | 464,676,000 | ||
Mortgage Loans, Multi Family | Substandard | |||||
Loans held for investment | 0 | 0 | 0 | ||
Mortgage Loans, Multi Family | Pass | |||||
Loans held for investment | 464,836,000 | 464,836,000 | 464,676,000 | ||
Mortgage Loans, Multi Family | Special Mention | |||||
Loans held for investment | $ 514,000 | $ 514,000 | $ 0 |
Derivative and Other Financia_3
Derivative and Other Financial Instruments with Off-Balance Sheet Risks - Schedule of Undisbursed Funds Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Derivative [Line Items] | ||
Total | $ 12,977 | $ 47,701 |
Undisbursed loan funds - Construction loans | ||
Derivative [Line Items] | ||
Total | 3,348 | 3,384 |
Undisbursed lines of credit - Commercial business loans | ||
Derivative [Line Items] | ||
Total | 834 | 541 |
Undisbursed lines of credit - Consumer loans | ||
Derivative [Line Items] | ||
Total | 380 | 390 |
Commitments to extend credit on loans to be held for investment | ||
Derivative [Line Items] | ||
Total | $ 8,415 | $ 43,386 |
Derivative and Other Financia_4
Derivative and Other Financial Instruments with Off-Balance Sheet Risks - Schedule of Allowance for Loan Losses of Undisbursed Funds and Commitments on Loans Held for Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of the year | $ 5,638 | $ 7,413 | $ 5,564 | $ 7,587 |
Recovery | 191 | (1,067) | 261 | (1,406) |
Allowance for loan losses, end of the year | 5,830 | 6,608 | 5,830 | 6,608 |
Commitments to extend credit on loans to be held for sale | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan losses, beginning of the year | 137 | 104 | 130 | 127 |
Recovery | (66) | (5) | (59) | (28) |
Allowance for loan losses, end of the year | $ 71 | $ 99 | $ 71 | $ 99 |
Derivative and Other Financia_5
Derivative and Other Financial Instruments with Off-Balance Sheet Risks - Summary of the recourse liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary Of Recourse Liability [Roll Forward] | ||||
Balance, beginning of the period | $ 160 | $ 200 | $ 160 | $ 200 |
Recovery for recourse liability | 0 | 40 | 40 | |
Net settlements in lieu of loan repurchases | 0 | 0 | 0 | 0 |
Balance, end of the period | $ 160 | $ 160 | $ 160 | $ 160 |
Derivative and Other Financia_6
Derivative and Other Financial Instruments with Off-Balance Sheet Risks - Additional Information (Details) | 6 Months Ended | |||||
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | |
Derivative [Line Items] | ||||||
Outstanding derivative financial instruments | $ 0 | $ 0 | ||||
Number Of Loans Repurchased | loan | 0 | 0 | ||||
Recourse Liability | $ 160,000 | $ 160,000 | $ 160,000 | 160,000 | $ 200,000 | $ 200,000 |
Mortgage Partnership Finance (MPF) Program | ||||||
Derivative [Line Items] | ||||||
Basis point of loss absorbed by first loss account | 4 | |||||
Other Investors | Mortgage Partnership Finance (MPF) Program | ||||||
Derivative [Line Items] | ||||||
Recourse Liability | $ 150,000 | 150,000 | ||||
FHLB - San Francisco [Member] | ||||||
Derivative [Line Items] | ||||||
Recourse Liability | $ 10,500 | $ 10,500 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Jun. 30, 2022 | |
Fair Value of Financial Instruments | ||
Loans held for investment, Aggregate Fair Value | $ 1,345 | $ 1,396 |
Loans held for investment, Aggregate Unpaid Principal Balance | 1,529 | 1,569 |
Loans held for investment, Net Unrealized Loss | $ (184) | $ (173) |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Corporations assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | $ 1,345 | $ 1,396 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 2,377 | 2,676 |
Loans held for investment, at fair value | 1,345 | 1,396 |
Interest-only strips | 9 | 7 |
Total assets | 3,731 | 4,079 |
Liabilities | 0 | |
Total liabilities | 0 | |
Recurring | U.S. government agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 1,533 | 1,698 |
Recurring | U.S. government sponsored enterprise MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 742 | 865 |
Recurring | Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 102 | 113 |
Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Loans held for investment, at fair value | 0 | 0 |
Interest-only strips | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Fair Value, Inputs, Level 1 | U.S. government agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Fair Value, Inputs, Level 1 | U.S. government sponsored enterprise MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Fair Value, Inputs, Level 1 | Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 2,275 | 2,563 |
Loans held for investment, at fair value | 0 | 0 |
Interest-only strips | 0 | 0 |
Total assets | 2,275 | 2,563 |
Liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Fair Value, Inputs, Level 2 | U.S. government agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 1,533 | 1,698 |
Recurring | Fair Value, Inputs, Level 2 | U.S. government sponsored enterprise MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 742 | 865 |
Recurring | Fair Value, Inputs, Level 2 | Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 102 | 113 |
Loans held for investment, at fair value | 1,345 | 1,396 |
Interest-only strips | 9 | 7 |
Total assets | 1,456 | 1,516 |
Liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Fair Value, Inputs, Level 3 | U.S. government agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Fair Value, Inputs, Level 3 | U.S. government sponsored enterprise MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Fair Value, Inputs, Level 3 | Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | $ 102 | $ 113 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements Using Level 3 Inputs (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 1,464 | $ 1,736 | $ 1,516 | $ 2,038 |
Total gains or losses (realized/unrealized) Included in earnings | 15 | 6 | (11) | 8 |
Total gains or losses (realized/unrealized) Included in other comprehensive income (loss) | (1) | (1) | (2) | (1) |
Purchases | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (22) | (31) | (47) | (335) |
Transfers in and/or out of Level 3 | 0 | 0 | ||
Ending balance | 1,456 | 1,710 | 1,456 | 1,710 |
Private issue CMO | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 107 | 150 | 113 | 154 |
Total gains or losses (realized/unrealized) Included in earnings | 0 | 0 | ||
Total gains or losses (realized/unrealized) Included in other comprehensive income (loss) | (3) | (1) | (4) | |
Purchases | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (2) | (3) | (7) | (8) |
Transfers in and/or out of Level 3 | 0 | 0 | ||
Ending balance | 102 | 146 | 102 | 146 |
Loans Held For Investment at Fair Value | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 1,350 | 1,577 | 1,396 | 1,874 |
Total gains or losses (realized/unrealized) Included in earnings | 15 | 6 | (11) | 8 |
Total gains or losses (realized/unrealized) Included in other comprehensive income (loss) | 0 | 0 | ||
Purchases | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (20) | (28) | (40) | (327) |
Transfers in and/or out of Level 3 | 0 | 0 | ||
Ending balance | 1,345 | 1,555 | 1,345 | 1,555 |
Interest-Only Strips | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 7 | 9 | 7 | 10 |
Total gains or losses (realized/unrealized) Included in earnings | 0 | 0 | ||
Total gains or losses (realized/unrealized) Included in other comprehensive income (loss) | 2 | 0 | 2 | (1) |
Purchases | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers in and/or out of Level 3 | 0 | 0 | ||
Ending balance | $ 9 | $ 9 | $ 9 | $ 9 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Corporations assets measured at fair value at the dates indicated on a nonrecurring basis (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-performing loans | $ 956 | $ 1,423 |
Mortgage servicing assets | 101 | 168 |
Total assets | 1,057 | 1,591 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-performing loans | 0 | 0 |
Mortgage servicing assets | 0 | 0 |
Total assets | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-performing loans | 58 | 515 |
Mortgage servicing assets | 0 | 0 |
Total assets | 58 | 515 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-performing loans | 898 | 908 |
Mortgage servicing assets | 101 | 168 |
Total assets | $ 999 | $ 1,076 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Valuation techniques and inputs used (Details) - Fair Value, Inputs, Level 3 $ in Thousands | 6 Months Ended |
Dec. 31, 2022 USD ($) | |
Private issue CMO | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 102 |
Private issue CMO | Market comparable pricing | Comparability adjustment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Increase |
Private issue CMO | Minimum | Market comparable pricing | Comparability adjustment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 6.40% |
Private issue CMO | Maximum | Market comparable pricing | Comparability adjustment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 7.40% |
Private issue CMO | Weighted Average | Market comparable pricing | Comparability adjustment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 7.20% |
Loans Held For Investment at Fair Value | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 1,345 |
Loans Held For Investment at Fair Value | Relative value analysis | Broker quotes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Increase |
Loans Held For Investment at Fair Value | Relative value analysis | Credit risk factors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Loans Held For Investment at Fair Value | Minimum | Relative value analysis | Broker quotes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 88.10% |
Loans Held For Investment at Fair Value | Minimum | Relative value analysis | Credit risk factors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 1.20% |
Loans Held For Investment at Fair Value | Maximum | Relative value analysis | Broker quotes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 98% |
Loans Held For Investment at Fair Value | Maximum | Relative value analysis | Credit risk factors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 6.60% |
Loans Held For Investment at Fair Value | Weighted Average | Relative value analysis | Broker quotes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 91.30% |
Loans Held For Investment at Fair Value | Weighted Average | Relative value analysis | Credit risk factors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 3.30% |
Non-performing loans | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 714 |
Non-performing loans | Discounted cash flow | Default rates. | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Assets Fair Value Measurement Input | 5% |
Non-performing loans | Discounted cash flow | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 5% |
Non-performing loans one | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 184 |
Non-performing loans one | Relative value analysis | Credit risk factors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Non-performing loans one | Minimum | Relative value analysis | Credit risk factors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 20% |
Mortgage servicing assets | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 101 |
Mortgage servicing assets | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Mortgage servicing assets | Discounted cash flow | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Mortgage servicing assets | Minimum | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 4.60% |
Mortgage servicing assets | Minimum | Discounted cash flow | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 9% |
Mortgage servicing assets | Maximum | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 60% |
Mortgage servicing assets | Maximum | Discounted cash flow | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 10.50% |
Mortgage servicing assets | Weighted Average | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 8.90% |
Mortgage servicing assets | Weighted Average | Discounted cash flow | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 9.10% |
Interest-Only Strips | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 9 |
Interest-Only Strips | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Interest-Only Strips | Discounted cash flow | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Assets Fair Value Measurement Input | 9% |
Interest-Only Strips | Minimum | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 7.70% |
Interest-Only Strips | Maximum | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 8.40% |
Interest-Only Strips | Weighted Average | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 8.40% |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Carrying amount and fair value of the Corporations other financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities - held to maturity, at cost | $ 168,232 | $ 185,745 |
Investment securities - held to maturity | 168,232 | 185,745 |
Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for investment, not recorded at fair value | 1,038,992 | 938,596 |
Investment securities - held to maturity, at cost | 168,232 | 185,745 |
FHLB - San Francisco stock | 8,239 | 8,239 |
Deposits | 945,302 | 955,504 |
Borrowings | 180,000 | 85,000 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for investment, not recorded at fair value | 957,388 | 892,339 |
Investment securities - held to maturity, at cost | 148,419 | 171,724 |
FHLB - San Francisco stock | 8,239 | 8,239 |
Deposits | 818,882 | 917,220 |
Borrowings | 178,343 | 84,299 |
Fair Value | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for investment, not recorded at fair value | 0 | 0 |
Investment securities - held to maturity, at cost | 0 | 0 |
FHLB - San Francisco stock | 0 | 0 |
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for investment, not recorded at fair value | 0 | 0 |
Investment securities - held to maturity, at cost | 148,419 | 171,724 |
FHLB - San Francisco stock | 8,239 | 8,239 |
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Fair Value | Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for investment, not recorded at fair value | 957,388 | 892,339 |
Investment securities - held to maturity, at cost | 0 | 0 |
FHLB - San Francisco stock | 0 | 0 |
Deposits | 818,882 | 917,220 |
Borrowings | $ 178,343 | $ 84,299 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loan servicing and other fees | $ 115 | $ 444 | $ 223 | $ 630 |
Other | 147 | 200 | 318 | 366 |
Total non-interest income | 956 | 1,368 | 1,959 | 2,437 |
Deposit account fees | ||||
Revenue within the scope of ASC 606 | 327 | 325 | 670 | 637 |
Card and processing fees | ||||
Revenue within the scope of ASC 606 | 367 | 399 | 748 | 804 |
BOLI | ||||
Other | $ 47 | $ 48 | $ 93 | $ 95 |
Leases - Supplemental informati
Leases - Supplemental information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | |
Leases | |||||
Lease expense | $ 216,000 | $ 219,000 | $ 431,000 | $ 442,000 | |
Consolidated Statements of Condition: | |||||
Premises and equipment - Operating lease right of use assets | 1,727,000 | 1,727,000 | $ 1,969,000 | ||
Accounts payable, accrued interest and other liabilities - Operating lease liabilities | 1,747,000 | 1,747,000 | $ 1,998,000 | ||
Consolidated Statements of Operations: | |||||
Premises and occupancy expenses from operating leases | 193,000 | 195,000 | 386,000 | 395,000 | |
Equipment expenses from operating leases | $ 23,000 | $ 24,000 | 45,000 | 47,000 | |
Consolidated Statements of Cash Flows: | |||||
Operating cash flows for operating leases, net | $ 437,000 | $ 465,000 |
Leases - Remaining minimum cont
Leases - Remaining minimum contractual lease payments and other information (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Remaining minimum contractual lease payments and other information associated with the leases | |
2023 | $ 418 |
2024 | 644 |
2025 | 467 |
2026 | 236 |
2027 | 39 |
Total contract lease payments | 1,804 |
Total liability to make lease payments | 1,747 |
Difference in undiscounted and discounted future lease payments | $ 57 |
Weighted average discount rate | 2.26% |
Weighted average remaining lease term (years) | 2 years 7 months 6 days |
Stock Repurchases (Details)
Stock Repurchases (Details) - April 2022 stock repurchase plan - $ / shares | 3 Months Ended | 6 Months Ended | |
Apr. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program authorized percentage | 5% | 58% | |
Stock Repurchase program, remaining authorized shares | 364,259 | 211,345 | 211,345 |
Stock repurchase plan period | 1 year | ||
Shares acquired | 103,290 | 152,914 | |
Shares repurchased weighted average cost per share | $ 14.26 | $ 14.36 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent event. | Jan. 24, 2023 $ / shares |
Subsequent Event [Line Items] | |
Dividends declared date | Jan. 24, 2023 |
Quarterly cash dividend declared, common stock | $ 0.14 |
Dividend, date of record | Feb. 14, 2023 |
Dividends payable, date | Mar. 07, 2023 |