Regulatory Matters

12 Months Ended

Jun. 30, 2023

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, 2023 and 2022, that the Bank met all OCC capital adequacy requirements to which it is subject.

As of June 30, 2023, 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, 2022.

The Bank’s actual and required capital amounts and ratios for OCC regulatory capital adequacy purposes are presented below as of June 30, 2023 and 2022:

								Required for Capital
			Actual					Adequacy Purposes
			Amount		Ratio			Amount		Ratio
			(Dollars in Thousands)
June 30, 2023
Core Capital	(1	)	$	57,281		8.69	%	$	19,783		3.00	%
Common Equity Tier 1	(2	)		57,281		12.79			29,675		4.50
Tangible Capital	(1	)		57,281		8.69			9,892		1.50
Total Risk-Based Capital	(2	)		62,454		13.95			35,817		8.00
June 30, 2022
Core Capital	(1	)	$	56,035		9.65	%	$	17,428		3.00	%
Common Equity Tier 1	(2	)		56,035		14.47			26,142		4.50
Tangible Capital	(1	)		56,035		9.65			8,714		1.50
Total Risk-Based Capital	(2	)		60,486		15.62			30,976		8.00

_________________________

(1) Amounts and Ratios to Adjusted Total Assets

(2) Amounts and Ratios to Total Risk-Weighted 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, 2023 and 2022:

								Required to be
			Actual					Well Capitalized
			Amount		Ratio			Amount		Ratio
			(Dollars in Thousands)
June 30, 2023
Tier 1 Leverage Capital	(1	)	$	57,281		8.69	%	$	32,972		5.00	%
Common Equity Tier 1	(2	)		57,281		12.79			42,864		6.50
Tier 1 Risk-Based Capital	(2	)		57,281		12.79			52,755		8.00
Total Risk-Based Capital	(2	)		62,454		13.95			44,771		10.00
June 30, 2022
Tier 1 Leverage Capital	(1	)	$	56,035		9.65	%	$	29,046		5.00	%
Common Equity Tier 1	(2	)		56,035		14.47			37,760		6.50
Tier 1 Risk-Based Capital	(2	)		56,035		14.47			46,474		8.00
Total Risk-Based Capital	(2	)		60,486		15.62			38,720		10.00

__________________________

(1) Amounts and Ratios to Adjusted Total Assets

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

The actual and required capital amounts and ratios applicable to the Bank for the years ended June 30, 2023 and 2022 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, 2023	Ratio			Amount			Ratio			Amount
	(Dollars in Thousands)
Total Equity, and Ratio to Average Total Assets		8.92	%	$	58,802
Investments in and Advances to
Nonincludable Subsidiaries					(118	)
Unrealized Gains on Securities Available-for-Sale					2,654
Goodwill					(2,670	)
Intangible Assets					(1,387	)
Non-significant investments Capital Stock					-
Tangible Capital, and Ratio to Adjusted Total Assets		8.69	%	$	57,281			1.50	%	$	9,892
Tier 1 (Core) Capital, and Ratio to Adjusted Total Assets		8.69	%	$	57,281			3.00	%		19,783
Tier 1 (Core) Capital, and Ratio to Risk-Weighted Assets		12.79	%		57,281			4.50	%		29,675
Allowance for Loan Losses					5,173
Excess Allowance for Loan Losses					-
Total Risk-Based Capital, and Ratio to Risk-Weighted Assets		13.95	%	$	62,454			8.00	%	$	35,817
Average Total Assets				$	663,615
Adjusted Total Assets				$	659,440
Risk-Weighted Assets				$	447,713

							Minimum for Capital
	Actual						Adequacy Purposes
June 30, 2022	Ratio			Amount			Ratio			Amount
	(Dollars in Thousands)
Total Equity, and Ratio to Average Total Assets		9.37	%	$	54,454
Investments in and Advances to
Nonincludable Subsidiaries					(118	)
Unrealized Gains on Securities Available-for-Sale					1,699
Non-significant investments Capital Stock					-
Tangible Capital, and Ratio to Adjusted Total Assets		9.65	%	$	56,035			1.50	%	$	8,714
Tier 1 (Core) Capital, and Ratio to Adjusted Total Assets		9.65	%	$	56,035			3.00	%		17,428
Tier 1 (Core) Capital, and Ratio to Risk-Weighted Assets		14.47	%		56,035			4.50	%		26,142
Allowance for Loan Losses					4,451
Excess Allowance for Loan Losses					-
Total Risk-Based Capital, and Ratio to Risk-Weighted Assets		15.62	%	$	60,486			8.00	%	$	30,976
Average Total Assets				$	581,047
Adjusted Total Assets				$	580,929
Risk-Weighted Assets				$	387,195