EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Jun. 30, 2022

EMPLOYEE BENEFIT PLANS

Summary of amounts recognized in the consolidated statement of condition related to the Bank's plans

Amounts recognized in the consolidated statement of condition related to the Company’s plans are as follows as of June 30 (dollars in thousands):

	2022		2021
Other assets
Pension asset	$	8,800	$	3,200
Other liabilities
Accumulated post-retirement benefit obligation	$	1,545		1,945
Accumulated other comprehensive (income) loss, net of taxes
Pension plan	$	493	$	5,155
Post-retirement benefit plan		(185)		134
	$	308	$	5,289

Summary of defined benefit pension plan

The following table sets forth information on the Company’s defined benefit pension plan as of June 30 (dollars in thousands):

	2022		2021
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	65,016	$	64,766
Service cost		2,315		2,910
Interest cost		1,813		1,809
Actuarial gain		(16,587)		(2,005)
Benefits paid		(9,524)		(2,464)
Settlement gain		(2,376)		—
Projected benefit obligation at end of year		40,657		65,016
Change in fair value of plan assets:
Fair value of plan assets at beginning of year		68,216		54,473
Actual return on plan assets		(9,235)		16,182
Benefits paid		(9,524)		(2,439)
Fair value of plan assets at end of year		49,457		68,216
Funded status of plan at end of year	$	8,800	$	3,200

Summary of actuarial assumptions used in determining the present value of the projected benefit obligations and net periodic pension cost

	2022		2021
Weighted average assumptions – benefit obligations
Discount rate	4.62	%	2.91	%
Annual rate of compensation increase	3.00	%	3.00	%
Weighted average assumptions – net periodic benefit cost
Discount rate	2.91	%	2.87	%
Annual rate of compensation increase	3.00	%	3.00	%
Expected long-term rate of return on plan assets	5.75	%	6.25	%

Summary of pension plan asset allocation, target allocation, and expected long-term rate of return by asset category

The Company’s pension plan asset allocation at June 30, 2022 and 2021, target allocation for 2022, and expected long-term rate of return by asset category are as follows:

		Percentage of					Weighted-
	Target		Plan Assets at				Average Expected
	Allocation		Year End				Long-Term Rate
Asset Category	2022		2022		2021		of Return
Equity securities	65.0	%	62.3	%	62.4	%	5.00 – 9.00	%
Fixed income securities	35.0	%	37.7	%	37.6	%	1.00 – 4.00	%
Total			100.0	%	100.0	%

Summary of fair values of the plan assets by asset category

The fair values of the plan assets at June 30, by asset category, are as follows (dollars in thousands):

			June 30, 2022
			Fair Value Measurements
				Quoted Prices in		Significant		Significant
				Active Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
Mutual funds
American Funds New World R6	$	2,455	$	2,455	$	—	$	—
Cohen & Steers Real Estate SECS I		1,504		1,504		—		—
Fidelity Capital & Income Fund		2,470		2,470		—		—
PIMCO Commodities Plus Strat Fd Inst		1,446		1,446		—		—
PIMCO Long Term Credit Bond Inst		7,458		7,458		—		—
PIMCO Low Duration Incm Fd I		2,028		2,028		—		—
Vanguard Developed Mkts Index Inst		6,207		6,207		—		—
Vanguard Growth Index Fund Instl		7,019		7,019		—		—
Vanguard Mid Cap Index Funds Admiral		3,406		3,406		—		—
Vanguard Small Cap I		2,924		2,924		—		—
Vanguard Value Index Instl Shares		6,941		6,941		—		—
Western Asset Core Bd Fd I		5,057		5,057		—		—
Cash		542		542		—		—
Total plan assets	$	49,457	$	49,457	$	—	$	—

			June 30, 2021
			Fair Value Measurements
				Quoted Prices in		Significant		Significant
				Active Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
Mutual funds
American Funds New World R6	$	3,424	$	3,424	$	—	$	—
Cohen & Steers Real Estate SECS I		2,001		2,001		—		—
Fidelity Capital & Income Fund		3,417		3,417		—		—
PIMCO Commodities Plus Strat Fd Inst		2,063		2,063		—		—
PIMCO Long Term Credit Bond Inst		10,370		10,370		—		—
PIMCO Low Duration Incm Fd I		2,720		2,720		—		—
Vanguard Developed Mkts Index Inst		8,594		8,594		—		—
Vanguard Growth Index Fund Instl		9,867		9,867		—		—
Vanguard Mid Cap Index Funds Admiral		4,798		4,798		—		—
Vanguard Small Cap I		4,073		4,073		—		—
Vanguard Value Index Instl Shares		9,403		9,403		—		—
Western Asset Core Bd Fd I		6,818		6,818		—		—
Cash		668		668		—		—
Total plan assets	$	68,216	$	68,216	$	—	$	—

Summary of plan's funded status and amounts recognized in the Bank's consolidated financial statements

The following table sets forth the plan’s funded status and amounts recognized in the Company’s consolidated financial statements at June 30 (dollars in thousands):

	2022		2021
Change in accumulated post-retirement benefit obligation:
Accumulated benefit obligation at beginning of year	$	1,945	$	2,204
Service cost		36		44
Interest cost		55		52
Actuarial gain		(431)		(298)
Benefits paid		(60)		(57)
Accumulated benefit obligation at end of year		1,545		1,945
Change in plan assets:
Fair value of plan assets at beginning of year		—		—
Employer contributions		60		57
Benefits paid		(60)		(57)
Fair value of plan assets at end of year		—		—
Unfunded status at end of year	$	(1,545)	$	(1,945)

Summary of amounts recognized in accumulated other comprehensive (gain) loss, before tax effect

Amounts recognized in accumulated other comprehensive loss, before tax effect, at June 30, consist of (dollars in thousands):

	2022		2021
Net actuarial (gain) loss	$	(250)	$	181

Pension plan

EMPLOYEE BENEFIT PLANS

Summary of net periodic cost included in the Company's consolidated statements of income

The increase in the actuarial gain in the projected benefit obligation resulted primarily from the increase in the discount rate.

The pension plan purchased annuities for a subset of retired plan participants during the year ended June 30, 2022 and as a result, settlement accounting due to the annuity purchase in addition to lump sums paid during the year end June 30, 2022 was recognized.

Net periodic pension cost included in salaries and employee benefits in the Company’s consolidated statements of operations included the following components (dollars in thousands):

	For the Year Ended
	June 30,
	2022		2021
Service cost	$	2,315	$	2,910
Interest cost		1,813		1,809
Expected return on plan assets		(3,749)		(3,349)
Amortization of net actuarial loss		—		1,698
Settlement loss		334		—
Net periodic pension cost	$	713	$	3,068

Summary of projected benefit payments under the plan over the next ten years

The benefit payments expected to be paid over the next ten years are as follows (dollars in thousands):

Fiscal year ending June 30,
2023	$	1,115
2024		1,158
2025		1,198
2026		1,307
2027		1,494
Years 2028 – 2032		10,758

Post-retirement benefit plan

EMPLOYEE BENEFIT PLANS

Summary of net periodic cost included in the Company's consolidated statements of income

The increase in the actuarial gain in the accumulated benefit obligation resulted primarily from the increase in the discount rate.

Net periodic post-retirement benefit cost included in salaries and employee benefits in the Company’s consolidated statements of income included the following components (dollars in thousands):

	For the Year Ended
	June 30,
	2022		2021
Service cost	$	36	$	44
Interest cost		55		52
Recognized actuarial loss		—		13
Net periodic post-retirement benefit cost	$	91	$	109

Summary of projected benefit payments under the plan over the next ten years

The projected benefit payments under the plan over the next ten years are as follows (dollars in thousands):

Fiscal year ending June 30,
2023	$	95
2024		100
2025		97
2026		88
2027		86
Years 2028 – 2032		421

Schedule of shares held by the ESOP

Shares held by the ESOP include the following (dollars in thousands):

	As of June 30,
	2022	2021
Allocated	178,206	101,832
Committed to be allocated	12,729	12,729
Unallocated	827,390	903,764
Total shares	1,018,325	1,018,325