Related Party Transactions

12 Months Ended

Jun. 30, 2023

Related Party Transactions

Related Party Transactions

Note 18 — Related Party Transactions

At June 30, 2023 and 2022 certain directors, executive officers, principal holders of the Company’s common stock, associates of such persons, and affiliated companies of such persons were indebted, including undrawn commitments to lend, to the Bank in the aggregate amount of $4.0 million and $1.5 million, respectively. These total commitments to lend include $1.3 million and $376 thousand of undrawn commitments at June 30, 2023 and 2022, respectively. The commitments are in the form of loans and guarantees for various business and personal interests. This indebtedness was incurred in the ordinary course of business on substantially the same terms, including interest rate and collateral, as those prevailing at the time of comparable transactions with unrelated parties. This indebtedness does not involve more than the normal risk of repayment or present other unfavorable features.

The following table shows the loan activity for related parties for the years ended June 30, 2023 and 2022:

	June 30,
(Dollars in thousands)	2023		2022
Beginning Balance	$	1,121	$	1,190
New loans and funding of existing lines of credit		1,745		—
Loans to newly appointed directors		—		—
Repayments		(186)		(69)
Ending balance	$	2,680	$	1,121

None of the Company’s affiliates, officers, directors, or employees have an interest in or receive remuneration from any special purpose entities or qualified special purpose entities which the Company transacts business.

During the years ended June 30, 2023 and 2022, the Bank purchased certain insurance policies through a related party insurance agency and paid insurance commissions of $31 thousand and $41 thousand, respectively.  These insurance commissions are included in other expense on the Company’s Consolidated Statements of Income.

At June 30, 2023 and 2022, certain directors, executive officers, principal holders of the Company’s common stock, associates of such persons, and affiliated companies of such persons had deposits with the Bank in the aggregate amount of $1.5 million and $1.3 million, respectively.