Note 4 - Premises and Equipment

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE 4—PREMISES AND EQUIPMENT

Major classifications of premises and equipment were as follows as of June 30:

	2024			2023
Land	$	2,417		$	2,417
Land improvements		472			414
Building and leasehold improvements		15,944			15,973
Furniture, fixture and equipment		8,411			7,600
Total premises and equipment		27,244			26,404
Accumulated depreciation and amortization		(10,317	)		(9,222	)
Premises and equipment, net	$	16,927		$	17,182

Depreciation expenses were $1,095 and $1,051 for the years ended June 30, 2024 and 2023, respectively.

As of June 30, 2024, the Company leased real estate for seven office locations and various equipment under operating lease agreements. The lease agreements have maturity dates ranging from one year or less to May 31, 2035, including extension periods. Lease agreements for three locations have a lease term of 12 months or less and are therefore considered short-term leases. Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion. The majority of renewals to extend the lease terms are included in our right-of-use assets and lease liabilities as they are reasonably certain of exercise. As most of our leases do not provide an implicit rate, we use the fully collateralized FHLB borrowing rate, commensurate with the lease terms based on the information available at the lease commencement date in determining the present value of the lease payments. The weighted average remaining life of the lease term for the leases with a term over 12 months was 7.25 years as of June 30, 2024 and the weighted-average discount rate was 1.94%.

Rent expense for all the operating leases was $245 and $254 for the twelve-month periods ended June 30, 2024 and 2023, respectively. As of June 30, 2024, the right-of-use asset, included in premises and equipment, was $777 and the lease liability, included in other liabilities, was $809.

Total estimated rental commitments for the operating leases with a term over 12 months were as follows as of June 30, 2024:

Period Ending June 30
2025	$	163
2026		125
2027		115
2028		115
2029		88
Thereafter		255
Total undiscounted cash flows	$	861
Less: present value discount	$	(52	)
Total lease liabilities	$	809