MINIMUM REGULATORY CAPITAL REQUIREMENTS

9 Months Ended

Mar. 31, 2024

Regulatory Capital Requirements Under Banking Regulations Abstract [Abstract]

MINIMUM REGULATORY CAPITAL REQUIREMENTS

8.MINIMUM REGULATORY CAPITAL REQUIREMENTS

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's unaudited consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines 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.

Federal banking regulations require minimum capital requirements for community banking institutions as set forth in the following table. Additionally, community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonuses. At March 31, 2024, the Bank met the required capital conservation buffer.

As of March 31, 2024, the most recent notification from the Office of the Comptroller of the Currency 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 as set forth in the following table. There are no conditions or events since receiving this notification that management believes has changed the Bank’s categorization.

The Bank’s actual capital amounts and ratios as of March 31, 2024 and June 30, 2023 are also presented in the table below.

	Actual					Minimum Capital Requirement					Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
March 31, 2024
Total capital (to risk weighted assets)	$	65,282		34.1	%	$	15,329		8.0	%	$	19,161		10.0	%
Common equity Tier 1 capital (to risk weighted assets)		63,517		33.1			8,622		4.5			12,455		6.5
Tier 1 capital (to risk weighted assets)		63,517		33.1			11,497		6.0			15,329		8.0
Tier 1 capital (to adjusted total assets)		63,517		17.8			14,252		4.0			17,815		5.0
June 30, 2023
Total capital (to risk weighted assets)	$	65,141		32.9	%	$	15,850		8.0	%	$	19,813		10.0	%
Common equity Tier 1 capital (to risk weighted assets)		63,394		32.0			8,916		4.5			12,878		6.5
Tier 1 capital (to risk weighted assets)		63,394		32.0			11,888		6.0			15,850		8.0
Tier 1 capital (to adjusted total assets)		63,394		18.2			13,950		4.0			17,438		5.0