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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