Commitments

12 Months Ended

Jun. 30, 2025

Note 9.

Commitments

Lease Commitments

The Bank leases property for two branch facilities.

Future minimum rental payments resulting from the non-cancelable term of these leases are as follows (in thousands):

Year Ending June 30,	Amount

2026	$	60
2027		36
2028		31
2029		34
2030		36
Thereafter		1,260
Total	$	1,457
Less Imputed Interest		(601	)
Present Value of Lease Liabilities		856

Total rent expense paid under the terms of these leases for the years ended June 30, 2025 and 2024 amounted to $60,000, for both years.

The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019, was used.

	June 30, 2025			June 30, 2024
Weighted-average remaining lease term
Operating lease	33.4 years			34.4 years
Weighted-average discount rate
Operating leases		3.00	%		3.00	%

The following table represents the consolidated statements of condition classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less) on the consolidated statements of condition.

(In Thousands)		June 30, 2025		June 30, 2024
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other Assets	$	799	$	818
Total Lease Right-of-Use Assets		$	799	$	818

Lease Liabilities
Operating lease liabilities	Other Accrued Expenses and Liabilities	$	856	$	861
Total Lease Liabilities		$	856	$	861

Contractual Commitment

The Bank has an agreement with a third-party to provide on-line data processing services. The agreement, which expires May 31, 2027, contains minimum monthly service charges of $61,767. At the end of this term, the agreement will automatically continue for successive periods of five years unless terminated upon written notice given at least six months prior to the end of the present term.

The future minimum commitments for the on-line processing services are as follows (in thousands):

Year Ending June 30,	Amount
	(In Thousands)

2026	$	741
2027		679
Total	$	1,420

Employment Contracts

The Company and the Bank have employment contracts with a certain key employee. These contracts provide for compensation and termination benefits. The future minimum commitments for the employment contracts are as follows (in thousands):

Year Ending June 30,	Amount
	(In Thousands)

2026	$	194
2027		194
2028		194

Total	$	582

Letters of Credit

At June 30, 2025, the Company had secured letters of credit in the aggregate amount of $44.9 million outstanding with the Federal Home Loan Bank, and $44.9 million expiring within one year. These letters of credit were issued to secure public body deposits. There were no outstanding borrowings associated with these letters of credit at June 30, 2025.