EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Jun. 30, 2023

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):

	2023		2022
Other assets
Pension asset	$	13,911	$	8,800
Other liabilities
Accumulated post-retirement benefit obligation	$	1,382		1,545
Accumulated other comprehensive (income) loss, net of taxes
Pension plan	$	(3,818)	$	493
Post-retirement benefit plan		(316)		(185)
	$	(4,134)	$	308

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):

	2023		2022
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	40,657	$	65,016
Service cost		1,534		2,315
Interest cost		1,885		1,813
Actuarial gain		(3,473)		(16,587)
Benefits paid		(1,583)		(9,524)
Settlement gain		—		(2,376)
Projected benefit obligation at end of year		39,020		40,657
Change in fair value of plan assets:
Fair value of plan assets at beginning of year		49,457		68,216
Actual return on plan assets		5,197		(9,235)
Benefits paid and actual expenses		(1,723)		(9,524)
Fair value of plan assets at end of year		52,931		49,457
Funded status of plan at end of year	$	13,911	$	8,800

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

	2023		2022
Weighted average assumptions – benefit obligations
Discount rate	5.23	%	4.62	%
Annual rate of compensation increase	3.00	%	3.00	%
Weighted average assumptions – net periodic benefit cost
Discount rate	4.62	%	2.91	%
Annual rate of compensation increase	3.00	%	3.00	%
Expected long-term rate of return on plan assets	5.75	%	5.75	%

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, 2023 and 2022, target allocation for 2023, 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	2023		2023		2022		of Return
Equity securities	65.0	%	63.2	%	62.3	%	5.00 – 9.00	%
Fixed income securities	35.0	%	36.8	%	37.7	%	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, 2023
			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	$	2,636	$	2,636	$	—	$	—
Cohen & Steers Real Estate SECS I		1,616		1,616		—		—
Fidelity Capital & Income Fund		2,616		2,616		—		—
PIMCO Commodities Plus Strat Fd Inst		1,546		1,546		—		—
PIMCO Long Term Credit Bond Inst		7,913		7,913		—		—
PIMCO Low Duration Incm Fd I		2,082		2,082		—		—
Vanguard Developed Mkts Index Inst		6,681		6,681		—		—
Vanguard Growth Index Fund Instl		7,763		7,763		—		—
Vanguard Mid Cap Index Funds Admiral		3,808		3,808		—		—
Vanguard Small Cap I		3,261		3,261		—		—
Vanguard Value Index Instl Shares		7,465		7,465		—		—
Western Asset Core Bd Fd I		5,160		5,160		—		—
Cash		384		384		—		—
Total plan assets	$	52,931	$	52,931	$	—	$	—

			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	$	—	$	—

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):

	2023		2022
Change in accumulated post-retirement benefit obligation:
Accumulated benefit obligation at beginning of year	$	1,545	$	1,945
Service cost		22		36
Interest cost		67		55
Actuarial gain		(193)		(431)
Benefits paid		(59)		(60)
Accumulated benefit obligation at end of year		1,382		1,545
Change in plan assets:
Fair value of plan assets at beginning of year		—		—
Employer contributions		59		60
Benefits paid		(59)		(60)
Fair value of plan assets at end of year		—		—
Unfunded status at end of year	$	(1,382)	$	(1,545)

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):

	2023		2022
Net actuarial gain	$	(427)	$	(250)

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,
	2023		2022
Service cost	$	1,534	$	2,315
Interest cost		1,885		1,813
Expected return on plan assets		(2,694)		(3,749)
Settlement loss		—		334
Net periodic pension cost	$	725	$	713

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,
2024	$	1,112
2025		1,151
2026		1,248
2027		1,421
2028		1,565
Years 2029 – 2033		11,360

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,
	2023		2022
Service cost	$	22	$	36
Interest cost		67		55
Amortization of net actuarial gain		(16)		—
Net periodic post-retirement benefit cost	$	73	$	91

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,
2024	$	102
2025		100
2026		89
2027		88
2028		74
Years 2029 – 2033		430

Schedule of shares held by the ESOP

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

	As of June 30,
	2023	2022
Allocated	203,664	152,748
Committed to be allocated	25,458	25,458
Unallocated	789,203	840,119
Total shares	1,018,325	1,018,325