Regulatory Matters

9 Months Ended

Mar. 31, 2022

Banking And Thrift Other Disclosures [Abstract]

Regulatory Matters

Note 8. Regulatory Matters

The following is a summary of the Bank’s actual capital amounts and ratios as of March 31, 2022 and June 30, 2021, compared to the required ratios for minimum capital adequacy and for classification as well capitalized (Dollars in thousands).

											To Be Well Capitalized
						For Capital					Under Prompt
						Adequacy					Corrective Action
	Bank Actual					Purposes					Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
March 31, 2022
Leverage (Tier 1)	$	246,410		12.9	%	$	76,672		4.0	%	$	95,840		5.0	%
Risk-based:
Common Tier 1		246,410		17.2			64,384		4.5			92,999		6.5
Tier 1		246,410		17.2			85,845		6.0			114,460		8.0
Total		255,121		17.8			114,460		8.0			143,075		10.0
June 30, 2021
Leverage (Tier 1)	$	233,944		12.5	%	$	74,988		4.0	%	$	93,735		5.0	%
Risk-based:
Common Tier 1		233,944		17.9			58,713		4.5			84,807		6.5
Tier 1		233,944		17.9			78,283		6.0			104,378		8.0
Total		241,825		18.5			104,378		8.0			130,472		10.0

In addition to the ratios above, the Basel III Capital Rules have established that community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonus payments to executive officers.

Management believes that as of March 31, 2022 and June 30, 2021, the Bank met all capital adequacy requirements to which it was subject, including the capital conservation buffer of 2.5%. Further, the most recent FDIC notification categorized the Bank as a well-capitalized institution under the prompt corrective action regulations. There have been no conditions or events since that notification that management believes have changed the Bank’s capital classification.