Regulatory Matters

12 Months Ended

Jun. 30, 2025

Regulatory Matters [Abstract]

Regulatory Matters

Note 16. Regulatory Matters

The Bank is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly other discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework  for prompt corrective action, the Bank must meet specific capital requirements that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

The Bank is required to maintain minimum capital ratios under OCC regulatory guidelines in order to ensure capital adequacy.  Management believes, as of June 30, 2025 and 2024, that the Bank met all OCC capital adequacy requirements to which it is subject.

As of June 30, 2025, the most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized, the Bank must maintain minimum capital ratios, which are different than those required to meet OCC capital adequacy requirements.

There are no conditions or events since that notification that management believes may have changed the Bank’s category.  The Bank was also classified as well capitalized at June 30, 2024.

The Bank’s actual and required capital amounts and ratios for OCC regulatory capital adequacy purposes are presented below as of June 30, 2025 and 2024:

							Required for Capital
		Actual					Adequacy Purposes
		Amount		Ratio			Amount		Ratio
		(Dollars in Thousands)
June 30, 2025
Common Equity Tier 1	(1)		56,720		13.59	%		18,809		4.50	%
Tier 1 Capital	(1)		56,720		13.59	%		25,079		6.00	%
Total Capital	(1)		61,204		14.67	%		33,439		8.00	%
Leverage	(2)		56,720		9.40	%		24,129		4.00	%
Tangible Capital	(2)		56,720		9.40	%		9,048		1.50	%
June 30, 2024
Common Equity Tier 1	(1)		57,738		13.29	%		19,546		4.50	%
Tier 1 Capital	(1)		57,738		13.29	%		26,061		6.00	%
Total Capital	(1)		62,312		14.35	%		34,748		8.00	%
Leverage	(2)		57,738		8.99	%		25,683		4.00	%
Tangible Capital	(2)		57,738		8.99	%		9,631		1.50	%

_________________________

(1) Amounts and Ratios to Total Risk-Weighted Assets

(2) Amounts and Ratios to Adjusted Average Total Consolidated Assets

The Bank’s actual and required capital amounts and ratios to be well capitalized under prompt corrective action provisions are presented below as of June 30, 2025 and 2024:

							Required to be
		Actual					Well Capitalized
		Amount		Ratio			Amount		Ratio
		(Dollars in Thousands)
June 30, 2025
Common Equity Tier 1	(1)		56,720		13.59	%		27,169		6.50	%
Tier 1 Capital	(1)		56,720		13.59	%		33,439		8.00	%
Total Capital	(1)		61,204		14.67	%		41,799		10.00	%
Leverage	(2)		56,720		9.40	%		30,161		5.00	%
June 30, 2024
Common Equity Tier 1	(1)		57,738		13.29	%		28,233		6.50	%
Tier 1 Capital	(1)		57,738		13.29	%		34,748		8.00	%
Total Capital	(1)		62,312		14.35	%		43,435		10.00	%
Leverage	(2)		57,738		8.99	%		32,104		5.00	%

__________________________

(1) Amounts and Ratios to Total Risk-Weighted Assets

(2) Amounts and Ratios to Adjusted Average Total Consolidated Assets

The actual and required capital amounts and ratios applicable to the Bank for the years ended June 30, 2025 and 2024 are presented in the following tables, including a reconciliation of capital under generally accepted accounting principles to such amounts reported for regulatory purposes (Non-GAAP):

								Minimum for Capital
	Actual							Adequacy Purposes
June 30, 2025	Ratio				Amount			Ratio			Amount
	(Dollars in Thousands)
Total Equity					$	57,914
Investments in and Advances to Nonincludable Subsidiaries						(118	)
Unrealized Gains on Securities Available-for-Sale						2,785
Goodwill						(2,990	)
Intangible Assets						(871	)
Common Equity Tier 1 Capital		13.59	%	(1)		56,720			4.50	%	$	18,809
Tier 1 Capital		13.59	%	(1)		56,720			6.00	%		25,079
Leverage		9.40	%	(2)		56,720			4.00	%		24,129
Tangible Capital		9.40	%	(2)		56,720			1.50	%		9,048
Allowance for Credit Losses						4,484
Total Capital		14.67	%	(1)		61,204			8.00	%		33,439
Risk-Weighted Assets						417,287
Adjusted Average Total Consolidated Assets						603,223

								Minimum for Capital
	Actual							Adequacy Purposes
June 30, 2024	Ratio				Amount			Ratio			Amount
	(Dollars in Thousands)
Total Equity					$	59,025
Investments in and Advances to Nonincludable Subsidiaries						(118	)
Unrealized Gains on Securities Available-for-Sale						2,615
Goodwill						(2,670	)
Intangible Assets						(1,114	)
Common Equity Tier 1 Capital		13.29	%	(1)		57,738			4.50	%	$	19,546
Tier 1 Capital		13.29	%	(1)		57,738			6.00	%		26,061
Leverage		8.99	%	(2)		57,738			4.00	%		25,683
Tangible Capital		8.99	%	(2)		57,738			1.50	%		9,631
Allowance for Credit Losses						4,574
Total Capital		14.35	%	(1)		62,312			8.00	%		34,748
Risk-Weighted Assets						434,351
Adjusted Average Total Consolidated Assets						642,073

_________________________

(1) Amounts and Ratios to Total Risk-Weighted Assets

(2) Amounts and Ratios to Adjusted Average Total Consolidated Assets