Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Aug. 31, 2022 | Dec. 31, 2021 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 000-28304 | ||
Entity Registrant Name | PROVIDENT FINANCIAL HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 33-0704889 | ||
Entity Address, Address Line One | 3756 Central Avenue | ||
Entity Address, City or Town | Riverside | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92506 | ||
City Area Code | 951 | ||
Local Phone Number | 686-6060 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | PROV | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 109.7 | ||
Entity Common Stock, Shares Outstanding | 7,265,518 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Firm ID | 34 | ||
Auditor Location | Costa Mesa, California | ||
Entity Central Index Key | 0001010470 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Assets | ||
Cash and cash equivalents | $ 23,414 | $ 70,270 |
Investment securities - held to maturity, at cost | 185,745 | 223,306 |
Investment securities - available for sale, at fair value | 2,676 | 3,587 |
Loans held for investment, net of allowance for loan losses of $5,564 and $7,587, respectively; includes $1,396 and $1,874 of loans held at fair value, respectively; $570.4 million and $607.0 million pledged to FHLB - San Francisco, respectively | 939,992 | 850,960 |
Accrued interest receivable | 2,966 | 2,999 |
Federal Home Loan Bank ("FHLB") - San Francisco stock | 8,239 | 8,155 |
Premises and equipment, net | 8,826 | 9,377 |
Prepaid expenses and other assets | 15,180 | 14,942 |
Total assets | 1,187,038 | 1,183,596 |
Liabilities: | ||
Non interest-bearing deposits | 125,089 | 123,179 |
Interest-bearing deposits | 830,415 | 814,794 |
Total deposits | 955,504 | 937,973 |
Borrowings | 85,000 | 100,983 |
Accounts payable, accrued interest and other liabilities | 17,884 | 17,360 |
Total liabilities | 1,058,388 | 1,056,316 |
Commitments and Contingencies (Note 13) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value (2,000,000 shares authorized; none issued and outstanding) | ||
Common stock, $0.01 par value; (40,000,000 shares authorized; 18,229,615 and 18,229,615 shares issued; 7,285,184 and 7,541,469 shares outstanding, respectively) | 183 | 183 |
Additional paid-in capital | 98,826 | 97,978 |
Retained earnings | 202,680 | 197,733 |
Treasury stock at cost (10,944,431 and 10,688,146 shares, respectively) | (173,041) | (168,686) |
Accumulated other comprehensive income, net of tax | 2 | 72 |
Total stockholders' equity | 128,650 | 127,280 |
Total liabilities and stockholders' equity | $ 1,187,038 | $ 1,183,596 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Consolidated Statements of Financial Condition | ||
Allowance for loan losses on loans held for investment (in dollars) | $ 5,564 | $ 7,587 |
Loans held for investment fair value (in dollars) | 1,396 | 1,874 |
Collateral pledged on Federal Home Loan Bank advances | $ 570,400 | $ 607,000 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 2,000,000 | 2,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized | 40,000,000 | 40,000,000 |
Common stock shares issued | 18,229,615 | 18,229,615 |
Common stock shares outstanding | 7,285,184 | 7,541,469 |
Treasury stock shares | 10,944,431 | 10,688,146 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Interest income: | ||
Loans receivable, net | $ 32,161 | $ 32,856 |
Investment securities | 1,906 | 1,849 |
FHLB - San Francisco stock | 489 | 418 |
Interest-earning deposits | 174 | 78 |
Total interest income | 34,730 | 35,201 |
Interest expense: | ||
Deposits | 1,144 | 1,745 |
Borrowings | 1,991 | 2,817 |
Total interest expense | 3,135 | 4,562 |
Net interest income | 31,595 | 30,639 |
Recovery from the allowance for loan losses | 2,462 | 708 |
Net interest income, after recovery from the the allowance for loan losses | 34,057 | 31,347 |
Non-interest income: | ||
Loan servicing and other fees | 1,056 | 1,170 |
Other | 719 | 551 |
Total non-interest income | 4,716 | 4,573 |
Non-interest expense: | ||
Salaries and employee benefits | 15,833 | 15,157 |
Premises and occupancy | 3,189 | 3,500 |
Equipment expense | 1,282 | 1,153 |
Professional expense | 1,419 | 1,561 |
Sales and marketing expense | 642 | 680 |
Deposit insurance premium and regulatory assessments | 543 | 552 |
Other | 3,007 | 3,130 |
Total non-interest expense | 25,915 | 25,733 |
Income before income taxes | 12,858 | 10,187 |
Provision for income taxes | 3,765 | 2,626 |
Net income | $ 9,093 | $ 7,561 |
Basic earnings per share | $ 1.23 | $ 1.01 |
Diluted earnings per share | $ 1.22 | $ 1 |
Deposit account fees | ||
Non-interest income: | ||
Total non-interest income | $ 1,302 | $ 1,247 |
Card and processing fees | ||
Non-interest income: | ||
Total non-interest income | $ 1,639 | $ 1,605 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Consolidated Statements of Comprehensive Income | ||
Net income | $ 9,093 | $ 7,561 |
Change in unrealized holding losses on securities available for sale and interest-only strips | (99) | (45) |
Other comprehensive loss, before income tax benefit | (99) | (45) |
Income tax benefit | (29) | (13) |
Other comprehensive loss | (70) | (32) |
Total comprehensive income | $ 9,023 | $ 7,529 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss), Net of Tax. | Total | |
Balance at Jun. 30, 2020 | $ 181 | $ 95,593 | $ 194,345 | $ (166,247) | $ 104 | $ 123,976 | |
Balance (in shares) at Jun. 30, 2020 | 7,436,315 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 7,561 | 7,561 | |||||
Other comprehensive loss | (32) | (32) | |||||
Purchase of treasury stock | [1] | (2,336) | (2,336) | ||||
Purchase of treasury stock (in shares) | [1] | (139,596) | |||||
Distribution of restricted stock (in shares) | 112,750 | ||||||
Forfeiture of restricted stock | 103 | (103) | |||||
Amortization of restricted stock | 1,206 | 1,206 | |||||
Exercise of stock options | $ 2 | 979 | 981 | ||||
Exercise of stock options (in shares) | 132,000 | ||||||
Stock options expense | 97 | 97 | |||||
Cash dividends | [2] | (4,173) | (4,173) | ||||
Balance at Jun. 30, 2021 | $ 183 | 97,978 | 197,733 | (168,686) | 72 | $ 127,280 | |
Balance (in shares) at Jun. 30, 2021 | 7,541,469 | 7,541,469 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 9,093 | $ 9,093 | |||||
Other comprehensive loss | (70) | (70) | |||||
Purchase of treasury stock | (4,305) | (4,305) | |||||
Purchase of treasury stock (in shares) | (257,285) | ||||||
Distribution of restricted stock (in shares) | 1,000 | ||||||
Awards of restricted stock | (9) | 9 | |||||
Forfeiture of restricted stock | 59 | (59) | |||||
Amortization of restricted stock | 747 | 747 | |||||
Stock options expense | 51 | 51 | |||||
Cash dividends | [2] | (4,146) | (4,146) | ||||
Balance at Jun. 30, 2022 | $ 183 | $ 98,826 | $ 202,680 | $ (173,041) | $ 2 | $ 128,650 | |
Balance (in shares) at Jun. 30, 2022 | 7,285,184 | 7,285,184 | |||||
[1] Includes the purchase of 0 shares and 34,614 shares of distributed restricted stock in fiscal 2022 and 2021 in settlement of employees' withholding tax obligations, respectively. Cash dividends of $0.56 per share were paid in both fiscal 2022 and 2021. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash dividends per share | $ 0.56 | $ 0.56 |
Restricted Stock | ||
Number of shares repurchase of distributed restricted stock in settlement of employee withholding tax obligations | 0 | 34,614 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 9,093 | $ 7,561 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,849 | 6,266 |
Recovery from the allowance for loan losses | (2,462) | (708) |
Stock-based compensation | 798 | 1,303 |
Provision for deferred income taxes | 1,140 | 481 |
Increase (decrease) in accounts payable, accrued interest and other liabilities | 484 | (658) |
Increase in prepaid expenses and other assets | (2,109) | (2,672) |
Net cash provided by operating activities | 11,793 | 11,573 |
Cash flows from investing activities: | ||
(Increase) decrease in loans held for investment, net | (88,320) | 50,088 |
Purchase of investment securities - held to maturity | (19,120) | (158,984) |
Maturity of investment securities - held to maturity | 600 | 800 |
Principal payments from investment securities - held to maturity | 54,530 | 51,544 |
Principal payments from investment securities - available for sale | 813 | 1,090 |
Purchase of FHLB - San Francisco stock | (84) | (185) |
Purchase of premises and equipment | (165) | (225) |
Net cash used for investing activities | (51,746) | (55,872) |
Cash flows from financing activities: | ||
Increase in deposits, net | 17,531 | 45,004 |
Repayments of long-term borrowings | (20,983) | (35,064) |
Proceeds from (repayment of) short-term borrowings, net | 5,000 | (5,000) |
Treasury stock purchases | (4,305) | (2,336) |
Proceeds from exercise of stock options | 981 | |
Withholding taxes on stock-based compensation | (877) | |
Cash dividends | (4,146) | (4,173) |
Net cash used for financing activities | (6,903) | (1,465) |
Net decrease in cash and cash equivalents | (46,856) | (45,764) |
Cash and cash equivalents at beginning of year | 70,270 | 116,034 |
Cash and cash equivalents at end of year | 23,414 | 70,270 |
Supplemental information: | ||
Cash paid for interest | 3,171 | 4,660 |
Cash paid for income taxes | $ 2,725 | $ 3,320 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2022 | |
Organization and Summary of Significant Accounting Policies | |
Organization and Summary of Significant Accounting Policies | Note 1: Organization and Summary of Significant Accounting Policies Basis of presentation The consolidated financial statements include the accounts of Provident Financial Holdings, Inc., and its wholly owned subsidiary, Provident Savings Bank, F.S.B. (collectively, the “Corporation”). All inter-company balances and transactions have been eliminated. Provident Savings Bank, F.S.B. (the “Bank”) converted from a federally chartered mutual savings bank to a federally chartered stock savings bank effective June 27, 1996. Provident Financial Holdings, Inc., a Delaware corporation organized by the Bank, acquired all of the capital stock of the Bank issued in the conversion; the transaction was recorded on a book value basis. The Corporation has determined that it operates in one business segment through the Bank. The Bank's activities include attracting deposits, offering banking services and originating and purchasing single-family, multi-family, commercial real estate, construction and other mortgage loans and, to a lesser extent, commercial business and consumer loans held for investment. Deposits are collected primarily from 13 banking locations located in Riverside and San Bernardino counties in California. Additional activities may include originating saleable single-family loans, primarily fixed-rate first mortgages. Loans are primarily originated and purchased in Southern and Northern California. Use of estimates The accounting and reporting policies of the Corporation conform to generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the loan repurchase reserve, the valuation of investment securities, the valuation of loans held for investment at fair value, deferred tax assets, loan servicing assets, real estate owned and deferred compensation costs. The following accounting policies, together with those disclosed elsewhere in the consolidated financial statements, represent the significant accounting policies of Provident Financial Holdings, Inc. and the Bank. Cash and cash equivalents Cash and cash equivalents include cash on hand and due from banks, as well as overnight deposits placed at the Federal Reserve Bank – San Francisco and correspondent banks. Investment securities The Corporation classifies its qualifying investments as available for sale or held to maturity. The Corporation classifies investments as held to maturity when it has the ability and it is management’s positive intent to hold such securities to maturity. Securities held to maturity are carried at amortized historical cost. All other securities are classified as available for sale and are carried at fair value. Fair value generally is determined based upon quoted market prices. Changes in net unrealized gains (losses) on securities available for sale are included in accumulated other comprehensive income, net of tax. Gains and losses on sale or dispositions of investment securities are included in non-interest income and are determined using the specific identification method. Purchase premiums and discounts are amortized over the expected average life of the securities using the effective interest method. Investment securities are reviewed annually for possible other-than-temporary impairment (“OTTI”). For debt securities, an OTTI is evident if the Corporation intends to sell the debt security or will more likely than not be required to sell the debt security before full recovery of the entire amortized cost basis is realized. However, even if the Corporation does not intend to sell the debt security and will not likely be required to sell the debt security before recovery of its entire amortized cost basis, the Corporation must evaluate expected cash flows to be received and determine if a credit loss has occurred. In the event of a credit loss, the credit component of the impairment is recognized within non-interest income and the non-credit component is recognized through accumulated other comprehensive income, net of tax. Loans held for investment Loans held for investment consist of long-term adjustable and fixed rate loans secured by first trust deeds on single-family residences and multi-family and commercial real estate loans secured by commercial property, land and other residential properties. These loans are generally offered to customers and businesses located in California. Net loan origination fees and certain direct origination expenses are deferred and amortized to interest income over the contractual life of the loan using the effective interest method. Amortization is discontinued for non-performing loans. Interest receivable represents, for the most part, the current month’s interest, which will be included as a part of the borrower’s next monthly loan payment. Interest receivable is accrued only if deemed collectible. Loans are placed on non-performing status when they become 90 days past due or if the loan is deemed impaired. When a loan is placed on non-performing status, interest accrued but not received is reversed against interest income. Interest income on non-performing loans is subsequently recognized only to the extent that cash is received and the principal balance is deemed collectible. If the principal balance is not deemed collectible, the entire payment received (principal and interest) is applied to the outstanding loan balance. Non-performing loans that become current as to both principal and interest are returned to accrual status after demonstrating satisfactory payment history (usually six consecutive months) and when future payments are expected to be collected. Allowance for loan losses The allowance for loan losses involves significant judgment and assumptions by management, which has a material impact on the carrying value of net loans. Management considers the accounting estimate related to the allowance for loan losses a critical accounting estimate because it is highly susceptible to changes from period to period, requiring management to make assumptions about probable incurred losses inherent in the loan portfolio at the balance sheet date. The impact of a sudden large loss could deplete the allowance and require increased provisions to replenish the allowance, which would negatively affect earnings. The allowance is based on two principles of accounting: (i) Accounting Standards Codification (“ASC”) 450, “Contingencies,” which requires that losses be accrued when they are probable of occurring and can be estimated; and (ii) ASC 310, “Receivables,” which requires that losses be accrued for non-performing loans that may be determined on an individually evaluated basis or based on an aggregated pooling method. The allowance has two components: collectively evaluated allowances and individually evaluated allowances. Each of these components is based upon estimates that can change over time. The allowance is based on historical experience and, as a result, can differ from actual losses incurred in the future. The Corporation also applies qualitative loss factors by assessing general economic indicators such as gross domestic product, retail sales, unemployment rates, employment growth, California home sales and median California home prices, as well as peer group data, reflecting the effect of events that have occurred but are not yet evidenced in the historical data. The historical data is reviewed at least quarterly and adjustments are made as needed. Management considers, based on currently available information, the allowance for loan losses sufficient to absorb probable losses inherent in loans held for investment. Various techniques are used to arrive at an individually evaluated allowance, including discounted cash flows and the fair market value of collateral. The use of these techniques is inherently subjective and the actual losses could be greater or less than the estimates. Allowance for unfunded loan commitments The Corporation maintains the allowance for unfunded loan commitments at a level that is adequate to absorb estimated probable losses related to these unfunded credit facilities. The Corporation determines the adequacy of the allowance based on periodic evaluations of the unfunded credit facilities, including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. The allowance for unfunded loan commitments is recorded in other liabilities on the Consolidated Statements of Financial Condition. Net adjustments to the allowance for unfunded loan commitments are included in other non-interest expense on the Consolidated Statements of Operations. Loans in forbearance On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act for 2020, as amended (“CARES Act”) was signed into law and on April 7, 2020, the Board of Governors of the Federal Reserve System (“Federal Reserve”), Federal Deposit Insurance Corporation (“FDIC”), National Credit Union Administration, Office of the Comptroller of the Currency (“OCC “) and Consumer Financial Protection Bureau issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus ("Interagency Statement"). Among other things, the CARES Act and Interagency Statement provided relief to borrowers, including the opportunity to defer loan payments while not negatively affecting their credit standing. For commercial and consumer customers, the Corporation provided relief options, including payment deferrals and fee waivers. All loans modified due to COVID-19 pandemic were separately monitored and any request for continuation of relief beyond the initial modification were reassessed to determine if a further modification should be granted and if a downgrade in risk rating was appropriate. After the payment deferral period (forbearance period), normal loan payments once again became due and payable. The forbearance amount will be due and payable in full as a balloon payment at the end of the loan term or sooner if the loan becomes due and payable in full at an earlier date. As of March 31, 2021, the Corporation ceased accepting new forbearance requests and as of June 30, 2022, the Corporation had no pending requests for this type of payment relief. As of June 30, 2022, the Corporation had no forbearance loans that were modified and operating under forbearance agreements in accordance with the CARES Act and Interagency Statement. For additional information, see Note 3 of the Notes to Consolidated Financial Statements. Troubled debt restructuring (“restructured loans”) A restructured loan is a loan which the Corporation, for reasons related to a borrower’s financial difficulties, grants a more than insignificant concession to the borrower that the Corporation would not otherwise consider. These financial difficulties include, but are not limited to, the borrowers’ default status on any of their debts, bankruptcy and recent changes in their financial circumstances (loss of job, etc.). The loan terms which have been modified or restructured due to a borrower’s financial difficulty, may include but are not limited to: a) A reduction in the stated interest rate. b) An extension of the maturity at an interest rate below market. c) A reduction in the accrued interest. d) Extensions, deferrals, renewals and rewrites. e) Loans that have been discharged in a Chapter 7 Bankruptcy that have not been reaffirmed by the borrower. To qualify for restructuring, a borrower must provide evidence of creditworthiness such as, current financial statements, most recent income tax returns, current paystubs, current W-2s, and most recent bank statements, among other documents, which are then verified by the Corporation. The Corporation re-underwrites the loan with the borrower’s updated financial information, new credit report, current loan balance, new interest rate, remaining loan term, updated property value and modified payment schedule, among other considerations, to determine if the borrower qualifies. The Corporation measures the allowance for loan losses of restructured loans based on the difference between the loan’s original carrying amount and the present value of expected future cash flows discounted at the original effective yield of the loan. Based on the OCC guidance with respect to restructured loans and to conform to general practices within the banking industry, the Corporation maintains certain restructured loans on accrual status, provided there is reasonable assurance of repayment and performance, consistent with the modified terms based upon a current, well-documented credit evaluation. All other restructured loans are classified as “Substandard” and placed on non-performing status. The Corporation typically upgrades restructured loans to the pass category if the borrower has demonstrated satisfactory contractual payments for at least six Non-performing loans The Corporation assesses loans individually and classifies as non-performing when the accrual of interest has been discontinued, loans have been restructured or management has serious doubts about the future collectability of principal and interest, even though the loans may currently be performing. Factors considered in determining classification include, but are not limited to, expected future cash flows, the financial condition of the borrower and current economic conditions. The Corporation measures each non-performing loan based on ASC 310, establishes a collectively evaluated or individually evaluated allowance and charges off those loans or portions of loans deemed uncollectible. Real estate owned Real estate acquired through foreclosure is initially recorded at the fair value of the real estate acquired, less estimated selling costs. Subsequent to foreclosure, the Corporation charges current earnings for estimated losses if the carrying value of the property exceeds its fair value. Gains or losses on the sale of real estate are recognized upon disposition of the property. Costs relating to improvement, maintenance and repairs of the property are expensed as incurred under gain (loss) on sale and operations of real estate owned acquired in the settlement of loans within the Consolidated Statements of Operations. Impairment of long-lived assets The Corporation reviews its long-lived assets for impairment annually or when events or circumstances indicate that the carrying amount of these assets may not be recoverable. Long-lived assets include buildings, land, fixtures, furniture and equipment. An asset is considered impaired when the expected discounted cash flows over the remaining useful life are less than the net book value. When impairment is indicated for an asset, the amount of impairment loss is the excess of the net book value over its fair value. Premises and equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed primarily on a straight-line basis over the estimated useful lives as follows: Buildings 10 to 40 years Furniture and fixtures 3 to 10 years Automobiles 3 to 5 years Computer equipment 3 to 5 years Leasehold improvements are amortized over the lesser of their respective lease terms or the useful life of the improvement, which ranges from one Income taxes The Corporation accounts for income taxes in accordance with ASC 740, “Income Taxes.” ASC 740 requires the affirmative evaluation that it is more likely than not, based on the technical merits of a tax position, that an enterprise is entitled to economic benefits resulting from positions taken in income tax returns. If a tax position does not meet the more-likely-than-not recognition threshold, the benefit of that position is not recognized in the financial statements. ASC 740 requires that when determining the need for a valuation allowance against a deferred tax asset, management must assess both positive and negative evidence with regard to the realizability of the tax losses represented by that asset. To the extent available, if sources of taxable income are insufficient to absorb tax losses, a valuation allowance is necessary. Sources of taxable income for this analysis include prior years’ tax returns, the expected reversals of taxable temporary differences between book and tax income, prudent and feasible tax-planning strategies, and future taxable income. The deferred income tax asset related to the allowance for loan losses will be realized when actual charge-offs are made against the allowance. Based on the availability of loss carry-backs and projected taxable income during the periods for which loss carry-forwards are available, management believes it is more likely than not the Corporation will realize the deferred tax asset. The Corporation continues to monitor the deferred tax asset on a quarterly basis for a valuation allowance. The future realization of these tax benefits primarily hinges on adequate future earnings to utilize the tax benefit. Prospective earnings or losses, tax law changes or capital changes could prompt the Corporation to reevaluate the assumptions which may be used to establish a valuation allowance. As of June 30, 2022 and 2021, the estimated deferred tax asset, which is included in prepaid expenses and other assets, was $1.4 million and $2.5 million, respectively. The Corporation maintains net deferred tax assets for deductible temporary tax differences, such as loss reserves, deferred compensation, non-accrued interest and unrealized gains, among other items. The decrease in the net deferred tax asset resulted primarily from a decreases in loan loss reserves and deferred loan costs. The Corporation did not have any liabilities for uncertain tax positions or any known unrecognized tax benefit at June 30, 2022 or 2021. Bank owned life insurance ("BOLI") ASC 715-60-35, "Accounting for Deferred Compensation and Post-retirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements," requires an employer to recognize obligations associated with endorsement split-dollar life insurance arrangements that extend into the participant’s post-employment benefit cost for the continuing life insurance or based on the future death benefit depending on the contractual terms of the underlying agreement. The Corporation adopted ASC 715-60-35 using the latter option, i.e., based on the future death benefit. The Bank purchases BOLI policies on the lives of certain executive officers while they are employed by the Bank and is the owner and beneficiary of the policies. The Bank invests in BOLI to provide an efficient form of funding for long-term retirement and other employee benefits costs. The Bank records these BOLI policies within prepaid expenses and other assets in the Consolidated Statements of Financial Condition at each policy’s respective cash surrender value, with net changes recorded in other non-interest income in the Consolidated Statements of Operations. Cash dividend A declaration or payment of dividends is at the discretion of the Corporation’s Board of Directors, who take into account the Corporation’s financial condition, results of operations, tax considerations, capital requirements, industry standards, economic conditions and other factors, including the regulatory restrictions which affect the payment of dividends by the Bank to the Corporation. Under Delaware law, dividends may be paid either out of surplus or, if there is no surplus, out of net profits for the current fiscal year and/or the preceding fiscal year in which the dividend is declared. For additional information, see Note 19 of the Notes to Consolidated Financial Statements regarding the subsequent event related to the cash dividend. Stock repurchases The Corporation repurchased 257,285 shares of its common stock with an average cost of $16.73 per share during fiscal 2022 pursuant to its April 2020 stock repurchase plan that expired on April 27, 2022. The Board of Directors approved a new stock repurchase plan on April 28, 2022 which authorized 364,259 shares for repurchase and expires on April 28, 2023, all of which remain available for purchase at June 30, 2022. Earnings per common share (“EPS”) Basic EPS represents net income divided by the weighted average common shares outstanding during the period excluding any potential dilutive effects. Diluted EPS gives effect to any potential issuance of common stock that would have caused basic EPS to be lower as if the issuance had already occurred. Accordingly, diluted EPS reflects an increase in the weighted average shares outstanding as a result of the assumed exercise of stock options and the vesting of restricted stock. The computation of diluted EPS does not assume exercise of stock options and vesting of restricted stock that would have an anti-dilutive effect on EPS. Stock-based compensation ASC 718, “Compensation – Stock Compensation,” requires companies to recognize in the Consolidated Statements of Operations the grant-date fair value of stock options and other equity-based compensation issued to employees and directors. Stock-based compensation expense, inclusive of restricted stock expense, recognized in the Consolidated Statements of Operations for the years ended June 30, 2022 and 2021 was $798,000 and $1.3 million, respectively. Employee Stock Ownership Plan ("ESOP") The Corporation recognizes compensation expense when the Bank contributes funds to the ESOP for the purchase of the Corporation’s common stock to be allocated to the ESOP participants. Since the contributions are discretionary, the benefits payable under the ESOP cannot be estimated. Restricted stock The Corporation recognizes compensation expense over the vesting period of the shares awarded, equal to the fair value of the shares at the award date. A total of $747,000 and $1.2 million of restricted stock expense was amortized during fiscal 2022 and 2021, respectively. Post-retirement benefits The estimated obligation for post-retirement health care and life insurance benefits is determined based on an actuarial computation of the cost of current and future benefits for the eligible (grandfathered) retirees and employees. The post retirement benefit liability is included in accounts payable, accrued interest and other liabilities in the Consolidated Statements of Financial Condition. Effective July 1, 2003, the Corporation discontinued the post-retirement health care and life insurance benefits to any employee not previously qualified (grandfathered) for these benefits. At June 30, 2022 and 2021, the accrued liability for post-retirement benefits was $174,000 and $125,000, respectively, which was fully funded consistent with actuarially determined estimates of the future obligation. Comprehensive income ASC 220, “Comprehensive Income,” requires that realized revenue, expenses, gains and losses be included in net income (loss). Unrealized gains (losses) on available for sale securities and interest-only strips are reported as a separate component of the stockholders’ equity section of the Consolidated Statements of Financial Condition and the change in the unrealized gains (losses) are reported on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Stockholders’ Equity. Accounting standard updates (“ASU”) ASU 2021-10: In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,” This ASU requires the following annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy: (1) Information about the nature of the transactions and the related accounting policy used to account for the transactions, (2) The line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item and (3) Significant terms and conditions of the transactions, including commitments and contingencies. This ASU is effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. The Corporation has adopted this ASU and it did not have a material impact on the Corporation’s consolidated financial statements. See Note 18 for additional disclosure. ASU 2016-13: In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendments to the initial guidance in November 2018, ASU No. 2018-19, April 2019, ASU 2019-04, May 2019, ASU 2019-05, November 2019, ASU 2019-11, February 2020, ASU 2020-02, March 2020, ASU 2020-03 and March 2022, ASU 2022-02, all of which clarifies codification and corrects unintended application of the guidance. In November 2019, the FASB also issued ASU 2019-10, “Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates” extending the adoption date for certain registrants, including the Corporation. These ASUs will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Corporation is evaluating its current expected loss methodology of its loan and investment portfolios to identify the necessary modifications in accordance with these standards and expects a change in the processes and procedures to calculate the allowance for loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. A valuation adjustment to its allowance for loan losses or investment portfolio that is identified in this process will be reflected as a one-time adjustment in equity rather than earnings upon adoption. The Corporation is in the process of compiling historical data that will be used to calculate expected credit losses on its loan portfolio to ensure the Corporation is fully compliant with these ASUs at the adoption date and is evaluating the potential impact upon adoption that these ASUs will have on the Corporation’s Consolidated Financial Statements. Once adopted, the Corporation anticipates the allowance for loan losses to increase through a one-time adjustment to retained earnings, however, until the evaluation is complete the magnitude of the potential increase will be unknown. ASU 2020-04: In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of reference Rate Reform on Financial Reporting. This ASU applies to contracts, hedging relationships and other transactions that reference LIBOR or other rate references expected to be discontinued because of reference rate reform. The ASU permits an entity to make necessary modifications to eligible contracts or transactions without requiring contract re- measurement or reassessment of a previous accounting determination. In January 2021, ASU 2021-01 clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the changes in the interest rates used for margining, discounting, or contract price alignment for derivative instruments that are being implemented as part of the market-wide transition to new reference rates (commonly referred to as the “discounting transition”). This ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Corporation is in the process of compiling data on the impact of reference rate reform and has not determined the impact of the adoption of this ASU on its consolidated financial statements. |
Investment Securities
Investment Securities | 12 Months Ended |
Jun. 30, 2022 | |
Investment Securities | |
Investment Securities | Note 2: Investment Securities The amortized cost and estimated fair value of investment securities as of June 30, 2022 and 2021 were as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair Carrying June 30, 2022 Cost Gains (Losses) Value Value (In Thousands) Held to maturity U.S. government sponsored enterprise MBS (1) $ 180,492 $ 63 $ (13,945) $ 166,610 $ 180,492 U.S. government sponsored enterprise CMO (2) 3,913 — (150) 3,763 3,913 U.S. SBA securities (3) 940 11 — 951 940 Certificate of deposits 400 — — 400 400 Total investment securities - held to maturity 185,745 74 (14,095) 171,724 185,745 Available for sale U.S. government agency MBS (1) 1,698 6 (6) 1,698 1,698 U.S. government sponsored enterprise MBS (1) 865 4 (4) 865 865 Private issue CMO (2) 118 — (5) 113 113 Total investment securities - available for sale 2,681 10 (15) 2,676 2,676 Total investment securities $ 188,426 $ 84 $ (14,110) $ 174,400 $ 188,421 (1) Mortgage-backed securities (“MBS”). (2) Collateralized Mortgage Obligations (“CMO”). (3) Small Business Administration ("SBA"). Gross Gross Estimated Amortized Unrealized Unrealized Fair Carrying June 30, 2021 Cost Gains (Losses) Value Value (In Thousands) Held to maturity U.S. government sponsored enterprise MBS $ 220,448 $ 2,209 $ (810) $ 221,847 $ 220,448 U.S. SBA securities 1,858 16 — 1,874 1,858 Certificate of deposits 1,000 — — 1,000 1,000 Total investment securities - held to maturity 223,306 2,225 (810) 224,721 223,306 Available for sale U.S. government agency MBS 2,146 76 — 2,222 2,222 U.S. government sponsored enterprise MBS 1,197 14 — 1,211 1,211 Private issue CMO 151 3 — 154 154 Total investment securities - available for sale 3,494 93 — 3,587 3,587 Total investment securities $ 226,800 $ 2,318 $ (810) $ 228,308 $ 226,893 In fiscal 2022 and 2021, the Corporation received MBS principal payments of $55.3 million and $52.6 million, respectively and did not sell any investment securities. The Corporation purchased MBS totaling $19.0 million and $158.0 million during fiscal 2022 and 2021, respectively. As of June 30, 2022 and 2021, the Corporation held investments with an unrealized loss position of $14.1 million and $810,000, respectively. As of June 30, 2022 Unrealized Holding Losses Unrealized Holding Losses Unrealized Holding Losses (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses Held to maturity U.S. government sponsored enterprise MBS $ 121,844 $ 9,018 $ 35,528 $ 4,927 $ 157,372 $ 13,945 U.S. government sponsored enterprise CMO 3,764 150 — — 3,764 150 Total investment securities - held to maturity 125,608 9,168 35,528 4,927 161,136 14,095 Available for sale U.S government agency MBS 826 6 — — 826 6 U.S. government sponsored enterprise MBS 671 4 — — 671 4 Private issue CMO 113 5 — — 113 5 Total investment securities - available for sale 1,610 15 — — 1,610 15 Total investment securities $ 127,218 $ 9,183 $ 35,528 $ 4,927 $ 162,746 $ 14,110 As of June 30, 2021 Unrealized Holding Losses Unrealized Holding Losses Unrealized Holding Losses (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses Held to maturity U.S. government sponsored enterprise MBS $ 84,600 $ 810 $ — $ — $ 84,600 $ 810 Total investment securities - held to maturity 84,600 810 — — 84,600 810 Total investment securities $ 84,600 $ 810 $ — $ — $ 84,600 $ 810 As of June 30, 2022, the Corporation had investment securities with unrealized holding losses of $9.2 million that were less than 12 months and $4.9 million that were in an unrealized loss position for more than 12 months, as compared to investment securities at June 30, 2021 with unrealized holding losses of $810,000 that were less than 12 months and none that were in an unrealized loss position for more than 12 months. The unrealized loss at June 30, 2022 was primarily attributable to 39 U.S. government sponsored enterprise MBS, two U.S. government sponsored enterprise CMOs and three private issue CMOs and, based on the nature of the investments, management concluded that such unrealized losses were not other than temporary. The unrealized loss at June 30, 2021 was attributable to 16 U.S. government sponsored enterprise MBS and, based on the nature of the investments, management concluded that such unrealized losses were not other than temporary. The Corporation does not believe that there was any OTTI at June 30, 2022 and 2021. At each of these dates, the Corporation intended and had the ability to hold the investment securities and was not likely to be required to sell the securities before realizing a full recovery. Contractual maturities of investment securities as of June 30, 2022 and 2021 were as follows: June 30, 2022 June 30, 2021 Estimated Estimated Amortized Fair Amortized Fair (In Thousands) Cost Value Cost Value Held to maturity Due in one year or less $ 1,427 $ 1,425 $ 1,209 $ 1,218 Due after one through five years 10,908 10,805 14,544 15,179 Due after five through ten years 77,167 72,625 90,798 91,780 Due after ten years 96,243 86,869 116,755 116,544 Total investment securities - held to maturity $ 185,745 $ 171,724 $ 223,306 $ 224,721 Available for sale Due in one year or less $ — $ — $ — $ — Due after one through five years — — — — Due after five through ten years 98 98 — — Due after ten years 2,583 2,578 3,494 3,587 Total investment securities - available for sale $ 2,681 $ 2,676 $ 3,494 $ 3,587 Total investment securities $ 188,426 $ 174,400 $ 226,800 $ 228,308 |
Loans Held for Investment
Loans Held for Investment | 12 Months Ended |
Jun. 30, 2022 | |
Loans Held for Investment | |
Loans Held for Investment | Note 3: Loans Held for Investment Loans held for investment consisted of the following at June 30, 2022 and 2021: (In Thousands) June 30, 2022 June 30, 2021 Mortgage loans: Single-family $ 378,234 $ 268,272 Multi-family 464,676 484,408 Commercial real estate 90,429 95,279 Construction 3,216 3,040 Other 123 139 Commercial business loans 1,206 849 Consumer loans 86 95 Total loans held for investment, gross 937,970 852,082 Advance payments of escrows 47 157 Deferred loan costs, net 7,539 6,308 Allowance for loan losses (5,564) (7,587) Total loans held for investment, net $ 939,992 $ 850,960 The following table sets forth information at June 30, 2022 regarding the dollar amount of loans held for investment that are contractually repricing during the periods indicated, segregated between adjustable rate loans and fixed rate loans. Fixed-rate loans comprised 11% and 4% of loans held for investment at June 30, 2022 and June 30, 2021, respectively. Adjustable rate loans having no stated repricing date that reprice when the index to which they are tied to reprices (e.g. prime rate index) and checking account overdrafts are reported as repricing within one year. The table does not include any estimate of prepayments which may cause the Corporation’s actual repricing experience to differ materially from that shown. Adjustable Rate After After After Within One Year 3 Years 5 Years (In Thousands) One Year Through 3 Years Through 5 Years Through 10 Years Fixed Rate Total Mortgage loans: Single-family $ 49,101 $ 25,507 $ 35,862 $ 170,359 $ 97,405 $ 378,234 Multi-family 135,586 131,136 146,148 51,634 172 464,676 Commercial real estate 46,777 20,934 21,382 — 1,336 90,429 Construction 2,142 — — — 1,074 3,216 Other — — — — 123 123 Commercial business loans 869 — — — 337 1,206 Consumer loans 86 — — — — 86 Total loans held for investment, gross $ 234,561 $ 177,577 $ 203,392 $ 221,993 $ 100,447 $ 937,970 The Corporation has developed an internal loan grading system to evaluate and quantify the Bank’s loans held for investment portfolio with respect to quality and risk. Management continually evaluates the credit quality of the Corporation’s loan portfolio and conducts a quarterly review of the adequacy of the allowance for loan losses using quantitative and qualitative methods. The Corporation has adopted an internal risk rating policy in which each loan is rated for credit quality with a rating of pass, special mention, substandard, doubtful or loss. The two primary components that are used during the loan review process to determine the proper allowance levels are individually evaluated allowances and collectively evaluated allowances. Quantitative loan loss factors are developed by determining the historical loss experience, expected future cash flows, discount rates and collateral fair values, among others. Qualitative loan loss factors are developed by assessing general economic indicators such as Gross Domestic Product, Retail Sales, Unemployment Rates, Employment Growth, California Home Sales and Median California Home Prices, among others. The Corporation assigns individual factors for the quantitative and qualitative methods for each loan category and each internal risk rating. The Corporation categorizes all of the loans held for investment into risk categories based on relevant information about the ability of the borrower to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. A description of the general characteristics of the risk grades is as follows: ◾ Pass - These loans range from minimal credit risk to average however still acceptable credit risk. The likelihood of loss is considered remote. ◾ Special Mention - A special mention asset has potential weaknesses that may be temporary or, if left uncorrected, may result in a loss. While concerns exist, the Bank is currently protected and loss is considered unlikely and not imminent. ◾ Substandard - A substandard loan is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. ◾ Doubtful - A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. ◾ Loss - A loss loan is considered uncollectible and of such little value that continuance as an asset of the Bank is not warranted. The following tables summarize gross loans held for investment by loan types and risk category at the dates indicated: June 30, 2022 Commercial Other Commercial (In Thousands) Single-family Multi-family Real Estate Construction Mortgage Business Consumer Total Pass $ 376,502 $ 464,676 $ 90,429 $ 3,216 $ 123 $ 1,206 $ 86 $ 936,238 Special Mention 224 — — — — — — 224 Substandard 1,508 — — — — — — 1,508 Total loans held for investment, gross $ 378,234 $ 464,676 $ 90,429 $ 3,216 $ 123 $ 1,206 $ 86 $ 937,970 June 30, 2021 Commercial Other Commercial (In Thousands) Single-family Multi-family Real Estate Construction Mortgage Business Consumer Total Pass $ 258,217 $ 483,289 $ 95,279 $ 3,040 $ 139 $ 849 $ 95 $ 840,908 Special Mention 1,767 — — — — — — 1,767 Substandard 8,288 1,119 — — — — — 9,407 Total loans held for investment, gross $ 268,272 $ 484,408 $ 95,279 $ 3,040 $ 139 $ 849 $ 95 $ 852,082 The allowance for loan losses is maintained at a level sufficient to provide for estimated losses based on evaluating known and inherent risks in the loans held for investment and upon management’s continuing analysis of the factors underlying the quality of the loans held for investment. These factors include changes in the size and composition of the loans held for investment, actual loan loss experience, current economic conditions, detailed analysis of individual loans for which full collectability may not be assured, and determination of the realizable value of the collateral securing the loans. Provisions (recoveries) for loan losses are charged (credited) against operations on a quarterly basis, as necessary, to maintain the allowance at appropriate levels. Future adjustments to the allowance for loan losses may be necessary and results of operations could be significantly and adversely affected as a result of economic, operating, regulatory, and other conditions beyond the Corporation’s control. Non-performing loans are charged-off to their fair market values in the period the loans, or portion thereof, are deemed uncollectible, generally after the loan becomes 150 days delinquent for real estate secured first trust deed loans and 120 days delinquent for commercial business or real estate secured second trust deed loans. For loans that were modified from their original terms, were re-underwritten and identified in the Corporation’s reports as restructured loans, the charge-off occurs when the loan becomes 90 days delinquent; and where borrowers file bankruptcy, the charge-off occurs when the loan becomes 60 days delinquent. The amount of the charge-off is determined by comparing the loan balance to the estimated fair value of the underlying collateral, less disposition costs, with the loan balance in excess of the estimated fair value charged-off against the allowance for loan losses. The allowance for loan losses for non-performing loans is determined by applying ASC 310, “Receivables.” For restructured loans that are less than 90 days delinquent, the allowance for loan losses are segregated into (a) individually evaluated allowances for those loans with applicable discounted cash flow calculations still in their restructuring period, classified lower than pass, and containing an embedded loss component or (b) collectively evaluated allowances based on the aggregated pooling method. For non-performing loans less than 60 days delinquent where the borrower has filed bankruptcy, the collectively evaluated allowances are assigned based on the aggregated pooling method. For non-performing commercial real estate loans, individually evaluated allowances are calculated based on their fair values and if their fair values are higher than their loan balances, no allowances are required. The following tables summarize the Corporation’s allowance for loan losses and recorded investment in gross loans, by portfolio type, at the dates and for the years indicated. Year Ended June 30, 2022 Commercial Commercial (In Thousands) Single-family Multi-family Real Estate Construction Other Mortgage Business Consumer Total Allowance at beginning of period $ 2,000 $ 4,485 $ 1,006 $ 51 $ 3 $ 36 $ 6 $ 7,587 (Recovery) provision for loan losses (1,056) (1,203) (190) (28) — 16 (1) (2,462) Recoveries 439 — — — — — — 439 Charge-offs — — — — — — — — Allowance for loan losses, end of period $ 1,383 $ 3,282 $ 816 $ 23 $ 3 $ 52 $ 5 $ 5,564 Allowance: Individually evaluated for allowances $ 38 $ — $ — $ — $ — $ — $ — $ 38 Collectively evaluated for allowances 1,345 3,282 816 23 3 52 5 5,526 Allowance for loan losses, end of period $ 1,383 $ 3,282 $ 816 $ 23 $ 3 $ 52 $ 5 $ 5,564 Gross Loans: Individually evaluated for allowances $ 1,275 $ — $ — $ — $ — $ — $ — $ 1,275 Collectively evaluated for allowances 376,959 464,676 90,429 3,216 123 1,206 86 936,695 Total loans held for investment, gross $ 378,234 $ 464,676 $ 90,429 $ 3,216 $ 123 $ 1,206 $ 86 $ 937,970 Allowance for loan losses as a percentage of gross loans held for investment 0.37 % 0.71 % 0.90 % 0.72 % 2.44 % 4.31 % 5.81 % 0.59 % Net (recoveries) charge-offs to average loans receivable, net during the period (0.15) % — % — % — % — % — % — % (0.05) % Year Ended June 30, 2021 Commercial Commercial (In Thousands) Single-family Multi-family Real Estate Construction Other Mortgage Business Consumer Total Allowance at beginning of period $ 2,622 $ 4,329 $ 1,110 $ 171 $ 3 $ 24 $ 6 $ 8,265 (Recovery) provision for loan losses (653) 156 (104) (120) — 12 1 (708) Recoveries 31 — — — — — 1 32 Charge-offs — — — — — — (2) (2) Allowance for loan losses, end of period $ 2,000 $ 4,485 $ 1,006 $ 51 $ 3 $ 36 $ 6 $ 7,587 Allowance: Individually evaluated for allowances $ 384 $ — $ — $ — $ — $ — $ — $ 384 Collectively evaluated for allowances 1,616 4,485 1,006 51 3 36 6 7,203 Allowance for loan losses, end of period $ 2,000 $ 4,485 $ 1,006 $ 51 $ 3 $ 36 $ 6 $ 7,587 Gross Loans: Individually evaluated for allowances $ 8,039 $ — $ — $ — $ — $ — $ — $ 8,039 Collectively evaluated for allowances 260,233 484,408 95,279 3,040 139 849 95 844,043 Total loans held for investment, gross $ 268,272 $ 484,408 $ 95,279 $ 3,040 $ 139 $ 849 $ 95 $ 852,082 Allowance for loan losses as a percentage of gross loans held for investment 0.75 % 0.93 % 1.06 % 1.68 % 2.16 % 4.24 % 6.32 % 0.88 % Net (recoveries) charge-offs to average loans receivable, net during the period (0.01) % — % — % — % — % — % 1.22 % (0.00) % The following summarizes the components of the net change in the allowance for loan losses for the years indicated: Year Ended June 30, (In Thousands) 2022 2021 Balance, beginning of year $ 7,587 $ 8,265 Recovery from the allowance for loan losses (2,462) (708) Recoveries 439 32 Charge-offs — (2) Balance, end of year $ 5,564 $ 7,587 The following tables identify the Corporation’s total recorded investment in non-performing loans by type at the dates and for the years indicated. Generally, a loan is placed on non-accrual status when it becomes 90 days past due as to principal or interest or if the loan is deemed impaired, after considering economic and business conditions and collection efforts, where the borrower’s financial condition is such that collection of the contractual principal or interest on the loan is doubtful. In addition, interest income is not recognized on any loan where management has determined that collection is not reasonably assured. A non-performing loan may be restored to accrual status when delinquent principal and interest payments are brought current and future monthly principal and interest payments are expected to be collected on a timely basis. Loans with a related allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals less costs to sell to establish realizable value. This evaluation may identify a specific impairment amount needed or may conclude that no reserve is needed. Loans that are not individually evaluated for impairment are included in pools of homogeneous loans for evaluation of related allowance reserves. At or For the Year Ended June 30, 2022 Unpaid Net Average Interest Principal Related Recorded Recorded Recorded Income (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Investment Recognized Mortgage loans: Single-family: With a related allowance $ 993 $ — $ 993 $ (85) $ 908 $ 2,594 $ 98 Without a related allowance (2) 548 (33) 515 — 515 635 232 Total single-family loans 1,541 (33) 1,508 (85) 1,423 3,229 330 Multi-family: With a related allowance — — — — — 957 46 Total multi-family loans — — — — — 957 46 Total non-performing loans $ 1,541 $ (33) $ 1,508 $ (85) $ 1,423 $ 4,186 $ 376 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because these loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. At or For the Year Ended June 30, 2021 Unpaid Related Net Average Interest Principal Charge-offs Recorded Recorded Recorded Income (In Thousands) Balance Related Investment Allowance (1) Investment Investment Recognized Mortgage loans: Single-family: With a related allowance $ 7,400 $ — $ 7,400 $ (434) $ 6,966 $ 7,187 $ 140 Without a related allowance (2) 1,335 (436) 899 — 899 1,516 — Total single-family loans 8,735 (436) 8,299 (434) 7,865 8,703 140 Multi-family: With a related allowance 1,119 — 1,119 (338) 781 374 15 Total mutlti-family loans 1,119 — 1,119 (338) 781 374 15 Commercial business loans: With a related allowance — — — — — 13 1 Total commercial business loans — — — — — 13 1 Total non-performing loans $ 9,854 $ (436) $ 9,418 $ (772) $ 8,646 $ 9,090 $ 156 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because these loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. At June 30, 2022 and 2021, there were no commitments to lend additional funds to those borrowers whose loans were classified as non-performing. During the fiscal years ended June 30, 2022 and 2021, the Corporation’s average investment in non-performing loans was $4.2 million and $9.1 million, respectively. The Corporation records payments on non-performing loans utilizing the cash basis or cost recovery method of accounting during the periods when the loans are on non-performing status. For the fiscal year ended June 30, 2022, the Bank received $405,000 in interest payments from non-performing loans, of which $376,000 was recognized as interest income. The remaining $29,000 was applied to reduce the loan balances under the cost recovery method. In comparison, for the fiscal year ended June 30, 2021, the Bank received $209,000 in interest payments from non-performing loans, of which $156,000 was recognized as interest income. The remaining $53,000 was applied to reduce the loan balances under the cost recovery method. The Corporation has modified loans in accordance with the CARES Act and Interagency Statement. The CARES Act and Interagency Statement provided guidance around the modification of loans as a result of the COVID-19 pandemic, and outlined, among other criteria, that short-term modifications of up to six months made on a good faith basis to borrowers who were current as defined under the CARES Act and Interagency Statement prior to any relief are not restructured loans and if all payments are current in accordance with the revised terms of the loan, the loan would not be reported as past due. As of June 30, 2022, the Corporation had no remaining forbearance loans that were modified and operating under forbearance agreements in accordance with the CARES Act and Interagency Statement. As of June 30, 2022, loan forbearance related to COVID-19 hardship requests are described below: Forbearance Granted Forbearance Completed (1) Forbearance Remaining Number of Number of Number of (Dollars In Thousands) Loans Amount Loans Amount Loans Amount Single-family loans 59 $ 22,980 59 $ 22,980 — $ — Multi-family loans 5 2,268 5 2,268 — — Commercial real estate loans 3 1,954 3 1,954 — — Total loan forbearance 67 $ 27,202 67 $ 27,202 — $ — (1) Includes 19 single-family loans totaling $6.9 million where forbearance was subsequently extended and were classified as restructured non-performing loans, consistent with the Interagency Statement. As of June 30, 2022, five loans totaling $2.2 million were paid off and 13 loans totaling $3.9 million were upgraded to the pass category, while one loan totaling $760,000 remained as non-performing. As of March 31, 2021, the Corporation ceased offering the COVID-19 forbearance relief program and as of June 30, 2022, the Corporation had no pending requests for this type of payment relief. After the payment deferral period, normal loan payments once again became due and payable. The forbearance amount is due and payable in full as a balloon payment at the end of the loan term or sooner if the loan becomes due and payable in full at an earlier date. The following tables provide information on the past due status of the Corporation’s loans held for investment, gross, at the dates indicated. June 30, 2022 30-89 Days Past Total Loans Held for (In Thousands) Current Due Non-Accrual (1) Investment, Gross Mortgage loans: Single-family $ 376,726 $ — $ 1,508 $ 378,234 Multi-family 464,676 — — 464,676 Commercial real estate 90,429 — — 90,429 Construction 3,216 — — 3,216 Other 123 — — 123 Commercial business loans 1,206 — — 1,206 Consumer loans 83 3 — 86 Total loans held for investment, gross $ 936,459 $ 3 $ 1,508 $ 937,970 (1) All loans 90 days or greater past due are placed on non-accrual status. June 30, 2021 30-89 Days Past Total Loans Held for (In Thousands) Current Due Non-Accrual (1) Investment, Gross Mortgage loans: Single-family $ 259,984 $ — $ 8,288 $ 268,272 Multi-family 483,289 — 1,119 484,408 Commercial real estate 95,279 — — 95,279 Construction 3,040 — — 3,040 Other 139 — — 139 Commercial business loans 849 — — 849 Consumer loans 88 7 — 95 Total loans held for investment, gross $ 842,668 $ 7 $ 9,407 $ 852,082 (1) All loans 90 days or greater past due are placed on non-accrual status. For the fiscal year ended June 30, 2022, there were no loans that were newly modified from their original terms, reunderwritten or identified as a restructured loan; three loans were upgraded to the pass category; seven loans were paid off; and no loans were converted to real estate owned. For the fiscal year ended June 30, 2021, there were 20 loans that were newly modified from their original terms, reunderwritten or identified as a restructured loan, including 19 COVID-19 related forbearance loans downgraded when their monthly payment deferrals were extended beyond six months; two loans were upgraded to the pass category; three loans were paid off; and no loans were converted to real estate owned. During the fiscal years ended June 30, 2022 and 2021, no restructured loans were in default within a 12-month period subsequent to their original restructuring. Additionally, during the fiscal year ended June 30, 2022, there were no restructured loans that were extended beyond the initial maturity of the modification; while in fiscal 2021, there were 12 restructured loans totaling $4.7 million (which were all COVID-19 related forbearance loans prior to their restructuring) that were extended beyond the initial maturity of the modification. As of June 30, 2022, the net outstanding balance of the Corporation's 13 restructured loans was $4.5 million; one loan with an outstanding balance of $722,000 was classified as substandard on non-accrual status. As of June 30, 2022, all of the restructured loans were current with respect to their payment status, consistent with their modified terms. As of June 30, 2021, the net outstanding balance of the Corporation's 23 restructured loans was $7.9 million; 20 loans totaling $7.0 million were classified as substandard on non-accrual status and three loans totaling $876,000 were classified as pass category on accrual status. As of June 30, 2021, $7.7 million, or 97 percent, of the restructured loans were current with respect to their payment status, consistent with their modified terms. At both June 30, 2022 and June 30, 2021, there were no commitments to lend additional funds to those borrowers whose loans were restructured. The following table summarizes at the dates indicated the restructured loan balances, net of allowance for loan losses or charge-offs, by loan type and non-accrual versus accrual status at June 30, 2022 and 2021 : At June 30, (In Thousands) 2022 2021 Restructured loans on non-accrual status: Mortgage loans: Single-family $ 722 $ 6,983 Total 722 6,983 Restructured loans on accrual status: Mortgage loans: Single-family 3,748 876 Total 3,748 876 Total restructured loans $ 4,470 $ 7,859 The following tables show the restructured loans by type, net of allowance for loan losses or charge-offs, at June 30, 2022 and 2021: At June 30, 2022 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 760 $ — $ 760 $ (38) $ 722 Without a related allowance (2) 3,748 — 3,748 — 3,748 Total single-family 4,508 — 4,508 (38) 4,470 Total restructured loans $ 4,508 $ — $ 4,508 $ (38) $ 4,470 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because these loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. At June 30, 2021 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 7,151 $ — $ 7,151 $ (384) $ 6,767 Without a related allowance (2) 1,457 (365) 1,092 — 1,092 Total single-family 8,608 (365) 8,243 (384) 7,859 Total restructured loans $ 8,608 $ (365) $ 8,243 $ (384) $ 7,859 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because these loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. In the ordinary course of business, the Bank makes loans to its directors, officers and employees on substantially the same terms prevailing at the time of origination for comparable transactions with unaffiliated borrowers. The following is a summary of related-party loan activity: Year Ended June 30, (In Thousands) 2022 2021 Balance, beginning of year $ — $ 1 Sales and payments — (1) Balance, end of year $ — $ — As of June 30, 2022 and 2021, there were no outstanding related-party loans. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2022 | |
Leases | |
Leases | Note 4: Leases The Corporation accounts for its leases in accordance with ASC 842, which was implemented on July 1, 2019, and requires the Corporation to record liabilities for future lease obligations as well as assets representing the right to use the underlying leased assets. The Corporation’s leases primarily represent future obligations to make payments for the use of buildings, space or equipment for its operations. Liabilities to make future lease payments are recorded in accounts payable, accrued interest and other liabilities, while right-of-use assets are recorded in premises and equipment in the Corporation’s Consolidated Statements of Financial Condition. At June 30, 2022, all of the Corporation’s leases were classified as operating leases and the Corporation did not have any operating leases with an initial term of 12 months or less (“short-term leases”). Liabilities to make future lease payments and right-of-use assets are recorded for operating leases and do not include short-term leases. These liabilities and right-of-use assets are determined based on the total contractual base rents for each lease, which include options to extend or renew each lease, where applicable, and where the Corporation believes it has an economic incentive to extend or renew the lease. Due to the fact that lease extensions are not reasonably certain, the Corporation generally does not recognize payments occurring during option periods in the calculation of its operating right-of-use lease assets and operating lease liabilities. The Corporation utilizes the FHLB - San Francisco interest rates as a discount rate for each of the remaining contractual terms at the adoption date as well as for future leases if the discount rate is not stated in the lease. For leases that contain variable lease payments, the Corporation assumes future lease payment escalations based on a lease payment escalation rate specified in the lease or the specified index rate observed at the time of lease commencement. Liabilities to make future lease payments are accounted for using the interest method, being reduced by periodic contractual lease payments net of periodic interest accretion. Right-of-use assets for operating leases are amortized over the term of the associated lease by amounts that represent the difference between periodic straight-line lease expense and periodic interest accretion in the related liability to make future lease payments. For the fiscal years ended June 30, 2022 and 2021, expenses associated with the Corporation’s leases totaled $880,000 and $866,000, respectively, and were recorded in premises and occupancy expenses and equipment expenses in the Consolidated Statements of Operations. The following table presents supplemental information related to operating leases at the date and for the years indicated: As of (In Thousands) June 30, 2022 June 30, 2021 Consolidated Statements of Condition: Premises and equipment - Operating lease right of use assets $ 1,969 $ 2,117 Accounts payable, accrued interest and other liabilities – Operating lease liabilities $ 1,998 $ 2,192 Year Ended June 30, 2022 2021 Consolidated Statements of Operations: Premises and occupancy expenses from operating leases (1) $ 788 $ 797 Equipment expenses from operating leases $ 92 $ 69 Consolidated Statements of Cash Flows: Operating cash flows from operating leases, net $ 921 $ 905 (1) Includes immaterial variable lease costs. The following table provides information related to remaining minimum contractual lease payments and other information associated with the Corporation’s leases as of June 30, 2022: Amount (1) Year Ending June 30, (In Thousands) 2023 $ 832 2024 555 2025 400 2026 236 2027 39 Thereafter — Total contract lease payments $ 2,062 Total liability to make lease payments $ 1,998 Difference in undiscounted and discounted future lease payments $ 64 Weighted average discount rate 1.97 % Weighted average remaining lease term (years) 3.1 (1) Contractual base rents do not include property taxes and other operating expenses due under respective lease agreements. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Jun. 30, 2022 | |
Premises and Equipment | |
Premises and Equipment | Note 5: Premises and Equipment Premises and equipment at June 30, 2022 and 2021 consisted of the following: June 30, (In Thousands) 2022 2021 Land $ 2,853 $ 2,853 Buildings 9,896 9,772 Leasehold improvements 2,996 3,033 Furniture and equipment 5,427 5,416 Automobiles 167 164 Operating lease – right of use assets (1) 1,969 2,117 23,308 23,355 Less accumulated depreciation and amortization (14,482) (13,978) Total premises and equipment, net $ 8,826 $ 9,377 (1) Net of accumulated amortization. Depreciation and amortization expense for the years ended June 30, 2022 and 2021 amounted to $1.5 million and $1.6 million, respectively. |
Deposits
Deposits | 12 Months Ended |
Jun. 30, 2022 | |
Deposits | |
Deposits | Note 6: Deposits Deposits at June 30, 2022 and 2021 consisted of the following: June 30, 2022 June 30, 2021 (Dollars in Thousands) Interest Rate Amount Interest Rate Amount Checking deposits – non interest-bearing — $ 125,089 — $ 123,179 Checking deposits – interest-bearing (1) 0.00% - 0.20% 335,788 0.00% - 0.20% 327,388 Savings deposits (1) 0.00% - 0.70% 333,581 0.00% - 0.70% 307,299 Money market deposits (1) 0.00% - 2.00% 39,897 0.00% - 2.00% 39,670 Time deposits: (1) Under $100 0.00% - 2.13% 60,721 0.00% - 2.13% 71,026 $100 and over 0.05% - 2.13% 60,428 0.05% - 2.13% 69,411 Total deposits $ 955,504 $ 937,973 Weighted-average interest rate on deposits 0.11 % 0.15 % (1) Certain interest-bearing checking, savings, money market and time deposits require a minimum balance to earn interest. The aggregate annual maturities of time deposits at June 30, 2022 and 2021 were as follows: June 30, (In Thousands) 2022 2021 One year or less $ 78,644 $ 76,705 Over one to two years 20,600 37,687 Over two to three years 13,890 11,230 Over three to four years 3,552 11,923 Over four to five years 3,186 2,493 Over five years 1,277 399 Total time deposits $ 121,149 $ 140,437 Interest expense on deposits for the years indicated is summarized as follows: Year Ended June 30, (In Thousands) 2022 2021 Checking deposits – interest-bearing $ 149 $ 188 Savings deposits 172 208 Money market deposits 71 80 Time deposits 752 1,269 Total interest expense on deposits $ 1,144 $ 1,745 The Bank is required to maintain reserve balances with the Federal Reserve Bank of San Francisco. Effective March 26, 2020, the Federal Reserve lowered the reserve ratios on transaction accounts maintained at a depository institution to zero percent so there was no required reserve balance at June 30, 2022 and 2021. |
Borrowings
Borrowings | 12 Months Ended |
Jun. 30, 2022 | |
Borrowings | |
Borrowings | Note 7: Borrowings Advances from the FHLB – San Francisco, which mature on various dates through 2025, are collateralized by pledges of certain real estate loans with an aggregate balance at June 30, 2022 and 2021 of $570.4 million and $607.0 million, respectively. In addition, the Bank pledged investment securities totaling $4.7 million and $1.6 million to collateralize its FHLB – San Francisco advances under the Securities-Backed Credit (“SBC”) program at June 30, 2022 and 2021, respectively. The Bank’s FHLB – San Francisco borrowing capacity, which is limited to 35% of total assets reported on the Bank’s quarterly Call Report, was approximately $415.7 million and $416.2 million at June 30, 2022 and 2021, respectively. As of June 30, 2022 and 2021, the remaining/available borrowing facility was $310.3 million and $296.8 million, respectively, and the remaining/available collateral was $310.5 million and $343.1 million, respectively. In addition, as of June 30, 2022 and 2021, the Bank had a $153.9 million and $206.1 million discount window facility, respectively, at the Federal Reserve Bank of San Francisco, collateralized by investment securities with a fair market value of $163.7 million and $219.2 million, respectively. As of June 30, 2022 and 2021, the Bank also had a borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million and $17.0 million, respectively. The Bank intends to request a renewal of its borrowing arrangement with the correspondent bank prior to maturity. As of both June 30, 2022 and 2021, there were no outstanding borrowings under the discount window facility or the federal funds facility with the correspondent bank. Borrowings at June 30, 2022 and 2021 consisted of the following: June 30, (In Thousands) 2022 2021 FHLB - San Francisco advances $ 85,000 $ 100,983 In addition to the total borrowings described above, the Bank utilizes its borrowing facility for letters of credit and MPF credit enhancement. The outstanding letters of credit at June 30, 2022 and 2021 were $18.0 million and $16.0 million, respectively; and the outstanding MPF credit enhancement was $2.5 million at both, June 30, 2022 and June 30, 2021. As a member of the FHLB – San Francisco, the Bank is required to maintain a minimum investment in FHLB – San Francisco capital stock. At both June 30, 2022 and 2021, the Bank held a stock investment of $8.2 million with no excess capital stock at either date. During fiscal 2022, the FHLB – San Francisco did not redeem any excess capital stock, while the Bank purchased $84,000 of FHLB - San Francisco capital stock. During fiscal 2021, the FHLB – San Francisco did not redeem any The following tables set forth certain information regarding borrowings by the Bank at the dates and for the years indicated: At or For the Year Ended June 30, (Dollars in Thousands) 2022 2021 Balance outstanding at the end of year: FHLB - San Francisco advances $ 85,000 $ 100,983 Weighted-average rate at the end of year: FHLB - San Francisco advances 2.20 % 2.19 % Maximum amount of borrowings outstanding at any month end: FHLB - San Francisco advances $ 100,978 $ 141,042 Average short-term borrowings during the year with respect to: (1) FHLB - San Francisco advances $ 25,513 $ 35,631 Weighted-average short-term borrowing rate during the year with respect to: (1) FHLB - San Francisco advances 1.87 % 2.14 % (1) Borrowings with a remaining term of 12 months or less. The aggregate annual contractual maturities of borrowings at June 30, 2022 and 2021 were as follows: June 30, (Dollars in Thousands) 2022 2021 Within one year $ 35,000 $ 20,983 Over one to two years 30,000 30,000 Over two to three years 20,000 30,000 Over three to four years — 20,000 Over four to five years — — Over five years — — Total borrowings $ 85,000 $ 100,983 Weighted average interest rate 2.20 % 2.19 % |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2022 | |
Income Taxes | |
Income Taxes | Note 8: Income Taxes ASC 740, “Income Taxes,” requires the affirmative evaluation that it is more likely than not, based on the technical merits of a tax position, that an enterprise is entitled to economic benefits resulting from positions taken in income tax returns. If a tax position does not meet the more-likely-than-not recognition threshold, the benefit of that position is not recognized in the financial statements. Management has determined that there were no unrecognized tax benefits to be reported in the Corporation’s consolidated financial statements for the years ended June 30, 2022 and 2021. Under generally accepted accounting principles, the Corporation uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Corporation’s effective tax rate may differ from the estimated statutory tax rates described above due to discrete items such as further adjustments to net deferred tax assets, excess tax benefits derived from stock option exercises and non-taxable earnings from bank owned life insurance, among other items. The Corporation utilizes the asset and liability method of accounting for income taxes whereby deferred tax assets are recognized for deductible temporary differences and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment. The provision for income taxes for the years indicated consisted of the following: Year Ended June 30, (In Thousands) 2022 2021 Current: Federal $ 1,781 $ 1,547 State 844 598 2,625 2,145 Deferred: Federal 696 303 State 444 178 1,140 481 Provision for income taxes $ 3,765 $ 2,626 The Corporation’s tax benefit from non-qualified equity compensation recognized in the Consolidated Statements of Operations in connection with the adoption of ASU 2016-09 for fiscal 2022 and 2021 was $0 and $91,000, respectively. The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to net income before income taxes as a result of the following differences for the years indicated: Year Ended June 30, 2022 2021 (In Thousands) Amount Tax Rate Amount Tax Rate Federal income tax at statutory rate $ 2,700 21.00 % $ 2,139 21.00 % State income tax, net of federal income tax benefit 988 7.68 % 614 6.05 % Changes in taxes resulting from: Bank-owned life insurance (39) (0.31) % (40) (0.39) % Non-deductible expenses 8 0.06 % 6 0.06 % Non-deductible stock-based compensation — — % (30) (0.30) % Excess tax benefit on stock-based compensation — — % (64) — % Return to provision adjustment 107 0.84 % — — % Other 1 0.01 % 1 (0.64) % Effective income tax $ 3,765 29.28 % $ 2,626 25.78 % Deferred tax assets at June 30, 2022 and 2021 by jurisdiction were as follows: June 30, (In Thousands) 2022 2021 Deferred taxes - federal $ 947 $ 1,617 Deferred taxes - state 485 926 Total net deferred tax assets $ 1,432 $ 2,543 Net deferred tax assets at June 30, 2022 and 2021 were comprised of the following: June 30, (In Thousands) 2022 2021 Loss reserves $ 1,968 $ 2,734 Non-accrued interest 199 392 Deferred compensation 2,903 2,512 Accrued vacation 178 197 Depreciation 211 153 State tax 64 — Other 245 307 Total deferred tax assets 5,768 6,295 FHLB - San Francisco stock dividends (645) (645) Prepaid expenses (28) (41) Unrealized loss (gain) on investment securities 1 (27) Unrealized gain on interest-only strips (2) (3) Deferred loan costs (3,662) (2,974) State tax — (62) Total deferred tax liabilities (4,336) (3,752) Net deferred tax assets $ 1,432 $ 2,543 The net deferred tax assets were included in prepaid expenses and other assets in the Consolidated Statements of Financial Condition. The Corporation analyzes the deferred tax assets to determine whether a valuation allowance is required based on the more-likely-than-not criteria that such assets will be realized principally through future taxable income. This criteria takes into account the actual earnings and the estimates of future profitability. The Corporation may carryback net federal tax losses to the preceding five taxable years and forward to the succeeding 20 taxable years. At June 30, 2022 and 2021, the Corporation had no federal and state net tax loss carryforwards. Based on management’s consideration of historical and anticipated future income before income taxes, as well as the reversal period for the items giving rise to the deferred tax assets and liabilities, a valuation allowance was not considered necessary at June 30, 2022 and 2021 and management believes it is more likely than not the Corporation will realize its deferred tax asset. Retained earnings at June 30, 2022 and 2021 include approximately $9.0 million (pre-1988 bad debt reserve for tax purposes) for which federal income tax of $3.1 million has not been provided. If the amounts that qualify as deductions for federal income tax purposes are later used for purposes other than for bad debt losses, including distribution in liquidation, they will be subject to federal income tax at the then-current corporate tax rate. If those amounts are not so used, they will not be subject to tax even in the event the Bank were to convert its charter from a thrift to a bank. The Corporation files income tax returns for the United States and California jurisdictions. The Internal Revenue Service has audited the Bank’s income tax returns through 1996 and the California Franchise Tax Board has audited the Bank through 1990. Also, the Internal Revenue Service completed a review of the Corporation’s income tax returns for fiscal 2006 and 2007; and the California Franchise Tax Board completed a review of the Corporation’s income tax returns for fiscal 2009 and 2010. Fiscal years of 2019 and thereafter remain subject to federal examination, while the California state tax returns for fiscal years 2018 and thereafter are subject to examination by state taxing authorities. It is the Corporation’s policy to record any penalties or interest charges arising from federal or state taxes as a component of income tax expense. For the fiscal years ended June 30, 2022 and 2021, there were no tax penalties and no interest charges arising from federal or state taxes. |
Capital
Capital | 12 Months Ended |
Jun. 30, 2022 | |
Capital | |
Capital | Note 9: Capital 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 Corporation’s 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. For a bank holding company such as the Corporation with less than $3.0 billion in assets, the capital guidelines apply on a bank only basis. The Federal Reserve expects the holding company’s subsidiary bank to be well capitalized under the prompt corrective action regulations. If the Corporation was subject to regulatory guidelines for bank holding companies at June 30, 2022, it would have exceeded all regulatory capital requirements. The Bank is subject to capital regulations which establish minimum required capital ratios for Tier 1 leverage, common equity Tier 1 (“CET1”), Tier 1 risk-based and total risk-based capital. Additionally, a capital conservation buffer is required over the required minimum capital ratios, and capital regulations also defines what qualifies as capital for purposes of meeting the capital requirements. Failure to meet minimum requirements can initiate certain mandatory and possibly additional discretionary actions by bank regulators that, if undertaken, could have a direct material effect on the Corporation’s financial statements. In addition to the minimum capital ratios, the Bank has to maintain a capital conservation buffer consisting of additional CET1 capital greater than 2.5% above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. For calendar 2020 and thereafter, the minimum requirements call for a Tier 1 leverage capital ratio of 4.00%, a CET1 capital ratio of 7.00%, a Tier 1 risk-based capital ratio of 8.50%, and a Total risk-based capital ratio of 10.50%. Under the standards, in order to be considered well-capitalized, the Bank must have at minimum a Tier 1 leverage capital ratio of 5.00%, a CET1 capital ratio of 6.50%, a Tier 1 risk-based capital ratio of 8.00%, and a Total risk-based capital ratio of 10.00%. The Bank’s actual and required minimum capital amounts and ratios at the dates indicated are as follows (dollars in thousands): Regulatory Requirements Minimum for Capital Minimum to Be Actual Adequacy Purposes (1) Well Capitalized Amount Ratio Amount Ratio Amount Ratio Provident Savings Bank, F.S.B.: As of June 30, 2022 Tier 1 leverage capital (to adjusted average assets) $ 124,871 10.47 % $ 47,699 4.00 % $ 59,624 5.00 % CET1 capital (to risk-weighted assets) $ 124,871 19.58 % $ 44,653 7.00 % $ 41,463 6.50 % Tier 1 capital (to risk-weighted assets) $ 124,871 19.58 % $ 54,221 8.50 % $ 51,032 8.00 % Total capital (to risk-weighted assets) $ 130,565 20.47 % $ 66,979 10.50 % $ 63,790 10.00 % As of June 30, 2021 Tier 1 leverage capital (to adjusted average assets) $ 121,621 10.19 % $ 47,736 4.00 % $ 59,670 5.00 % CET1 capital (to risk-weighted assets) $ 121,621 18.58 % $ 45,816 7.00 % $ 42,544 6.50 % Tier 1 capital (to risk-weighted assets) $ 121,621 18.58 % $ 55,634 8.50 % $ 52,361 8.00 % Total capital (to risk-weighted assets) $ 129,335 19.76 % $ 68,724 10.50 % $ 65,452 10.00 % (1) Inclusive of the conservation buffer of 2.50% for CET1 capital, Tier 1 capital and Total capital ratios. At June 30, 2022, the Bank exceeded all regulatory capital requirements. The Bank was categorized as "well-capitalized" at June 30, 2022 under the regulations of the OCC. The ability of the Corporation to pay dividends to stockholders depends primarily on the ability of the Bank to pay dividends to the Corporation. The Corporation and the Bank may not declare or pay cash dividends on or repurchase any of its shares of common stock, if the effect would cause stockholders’ equity to be reduced below applicable regulatory capital maintenance requirements or if such declaration and payment would otherwise violate regulatory requirements. Generally, savings institutions, such as the Bank, that before and after the proposed distribution are well-capitalized, may make capital distributions during any calendar year up to 100% of net income for the year-to-date plus retained net income for the two preceding years. However, an institution deemed to be in need of more than normal supervision or in troubled condition by the OCC may have its dividend authority restricted by the OCC. If the Bank, however, proposes to make a capital distribution when it does not meet its capital requirements (or will not following the proposed capital distribution) or that will exceed these net income-based limitations, it must obtain the OCC's approval prior to making such distribution. In addition, the Bank must file a prior written notice of a dividend with the Federal Reserve. The Federal Reserve or the OCC may object to a capital distribution based on safety and soundness concerns. Additional restrictions on Bank dividends may apply if the Bank fails the Qualified Thrift Lender test. In fiscal 2022 and 2021, the Bank declared and paid $7.5 million and $5.0 million of cash dividends to its parent, the Corporation, respectively. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Jun. 30, 2022 | |
Benefit Plans | |
Benefit Plans | Note 10: Benefit Plans The Corporation has a 401(k) defined-contribution plan covering all employees meeting specific age and service requirements. Under the plan, employees may contribute to the plan from their pretax compensation up to the limits set by the Internal Revenue Service. The Corporation makes matching contributions up to 3% of a participants’ pretax compensation. Participants vest immediately in their own contributions with 100% vesting in the Corporation’s contributions occurring after six years of credited service. The Corporation’s expense for the plan was approximately $297,000 for both the years ended June 30, 2022 and 2021. The Corporation has a multi-year employment agreement and a post-retirement compensation agreement with one executive officer and a post-retirement compensation agreement with another executive officer, which requires payments of certain benefits upon retirement. At June 30, 2022 and 2021, the accrued liability of the post-retirement compensation agreements was $6.8 million and $6.6 million, respectively; costs are being accrued and expensed annually. For fiscal 2022 and 2021, the accrued expense for these liabilities was $217,000 and $563,000, respectively. The current obligation for these post-retirement benefits was fully funded consistent with contractual requirements and actuarially determined estimates of the total future obligation. The Corporation invests in BOLI to provide sufficient funding for these post-retirement obligations. As of June 30, 2022 and 2021, the total outstanding cash surrender value of the BOLI was $8.2 million and $8.0 million, respectively. For fiscal 2022 and 2021, the total BOLI non-taxable income, net of mortality cost was $188,000 and $191,000, respectively. Employee Stock Ownership Plan The Corporation established an ESOP on June 27, 1996 for all employees who are age 21 or older and have completed one year of service with the Corporation during which they have served a minimum of 1,000 hours. The Corporation recognizes compensation expense when the Corporation contributes funds to the ESOP for the purchase of the Corporation’s common stock to be allocated to the ESOP participants. The Corporation's contribution to the ESOP plan is discretionary. During fiscal 2022, there were 20,000 shares that were purchased in the open market and $317,000 in cash contributions to fulfill the annual discretionary allocation. This compares to fiscal 2021 when the Corporation purchased 40,000 shares in the open market to fulfill the annual discretionary allocation. Since the annual contributions are discretionary, the benefits payable under the ESOP cannot be estimated. Benefits generally become 100% vested after six years of credited service. Vesting accelerates upon retirement, death or disability of the participant or in the event of a change in control of the Corporation. Forfeitures are reallocated among remaining participating employees in the same proportion as contributions. Benefits are payable upon death, retirement, early retirement, disability or separation from service. The net expense related to the ESOP for the years ended June 30, 2022 and 2021 was $659,000 and $577,000 respectively. Available shares and cash contributions, if any, are allocated every calendar year end; and the total allocated at December 31, 2021 and 2020 were 40,000 shares at both dates. |
Incentive Plans
Incentive Plans | 12 Months Ended |
Jun. 30, 2022 | |
Incentive Plans | |
Incentive Plans | Note 11: Incentive Plans As of June 30, 2022, the Corporation had three share-based compensation plans, which are described below. These plans are the 2013 Equity Incentive Plan (“2013 Plan”), the 2010 Equity Incentive Plan (“2010 Plan”) and the 2006 Equity Incentive Plan (“2006 Plan”, collectively, the “Plans”). For the years ended June 30, 2022 and 2021, the compensation cost for the Plans was $798,000 and $1.3 million, respectively. Equity Incentive Plans. Equity Incentive Plans - Stock Options. The fair value of each option grant is estimated using the Black-Scholes option valuation model with the following assumptions as of the grant date for the periods indicated. The expected volatility is based on implied volatility from historical common stock closing prices for the prior 84 months. The expected dividend yield is based on the most recent quarterly dividend on an annualized basis. The expected term is based on the historical experience of all fully vested stock option grants and is reviewed annually. The risk-free interest rate is based on the U.S. Treasury note rate with a term similar to the underlying stock option on the particular grant date. Fiscal 2022 Fiscal 2021 Expected volatility 20.3 % — % Weighted-average volatility 20.3 % — % Expected dividend yield 3.4 % — % Expected term (in years) 7.4 — Risk-free interest rate 1.4 % — % In fiscal 2022, there were 14,000 options granted and 3,000 options expired, while no options were exercised or forfeited As of June 30, 2022 and 2021, there were 43,500 options and 60,500 options available for future grants under the 2013 Plan, respectively. The following tables summarize the stock option activity in the Plans during the years ended June 30, 2022 and 2021: Weighted- Weighted- Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Shares Price Term (Years) ($000) Outstanding at June 30, 2020 554,500 $ 14.07 Granted — $ — Exercised (132,000) $ 7.43 Forfeited (5,500) $ 10.68 Outstanding at June 30, 2021 417,000 $ 16.22 4.28 $ 760 Vested and expected to vest at June 30, 2021 408,000 $ 16.13 4.20 $ 760 Exercisable at June 30, 2021 372,000 $ 15.74 3.84 $ 760 Outstanding at June 30, 2021 417,000 $ 16.22 Granted 17,000 $ 16.70 Exercised — $ — Forfeited — $ — Expired (3,000) $ 16.70 Outstanding at June 30, 2022 431,000 $ 16.24 3.48 $ 63 Vested and expected to vest at June 30, 2022 419,200 $ 16.15 3.36 $ 63 Exercisable at June 30, 2022 372,000 $ 15.74 2.84 $ 63 As of June 30, 2022 and 2021, there was $94,000 and $114,000 of unrecognized compensation expense, respectively, related to unvested share-based compensation arrangements with respect to stock options issued under the Plans. The expense is expected to be recognized over a weighted-average period of 1.6 years and 1.9 years, respectively. The forfeiture rate during both fiscal 2022 and 2021 was 20 percent, and was calculated by using the historical forfeiture experience of all fully vested stock option grants which is reviewed annually. Equity Incentive Plans – Restricted Stock. In fiscal 2022, 1,000 shares of restricted stock were awarded, while 1,000 shares were vested and distributed, and 6,500 shares were forfeited. In fiscal 2021, no shares of restricted stock were awarded and 112,750 shares were vested and distributed, while 11,500 shares were forfeited. As of June 30, 2022 and 2021, there were 68,250 and 62,750 shares available for future awards under the 2013 Plan, respectively. The following table summarizes the restricted stock activity for the years ended June 30, 2022 and 2021: Weighted-Average Award Date Unvested Shares Shares Fair Value Unvested at June 30, 2020 225,500 $ 18.55 Awarded — $ — Vested (112,750) $ 18.53 Forfeited (11,500) $ 18.57 Unvested at June 30, 2021 101,250 $ 18.57 Expected to vest at June 30, 2021 81,000 $ 18.57 Unvested at June 30, 2021 101,250 $ 18.57 Awarded 1,000 $ 16.70 Vested (1,000) $ 16.70 Forfeited (6,500) $ 18.57 Unvested at June 30, 2022 94,750 $ 18.57 Expected to vest at June 30, 2022 75,800 $ 18.57 As of June 30, 2022 and 2021, the unrecognized compensation expense was $994,000 and $1.8 million, respectively, related to unvested share-based compensation arrangements with respect to restricted stock issued under the Plans, and reported as a reduction to stockholders’ equity. This expense is expected to be recognized over a weighted-average period of 0.9 years and 1.9 years, respectively. Similar to stock options, a forfeiture rate of 20 percent was applied to the restricted stock compensation expense calculations in fiscal 2022 and 2021. For the fiscal years ended June 30, 2022 and 2021, the fair value of shares vested and distributed was $17,000 and $2.1 million, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share | |
Earnings Per Share | Note 12: Earnings Per Share Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the earnings of the Corporation. As of June 30, 2022 and 2021, there were outstanding options to purchase 431,000 shares and 417,000 shares of the Corporation’s common stock, respectively, of which 130,000 shares and 116,000 shares, respectively, were excluded from the diluted EPS computation as their effect was anti-dilutive. As of June 30, 2022 and 2021, there were outstanding restricted stock awards of 94,750 shares and 101,250 shares, respectively. The following table provides the basic and diluted EPS computations for the fiscal years ended June 30, 2022 and 2021, respectively: For the Year Ended June 30, 2022 Income Shares Per-Share (Dollars in Thousands, Except Share Amount) (Numerator) (Denominator) Amount Basic EPS $ 9,093 7,404,089 $ 1.23 Effect of dilutive shares: Stock options 29,614 Restricted stock 15,301 Diluted EPS $ 9,093 7,449,004 $ 1.22 For the Year Ended June 30, 2021 Income Shares Per-Share (Dollars in Thousands, Except Share Amount) (Numerator) (Denominator) Amount Basic EPS $ 7,561 7,464,814 $ 1.01 Effect of dilutive shares: Stock options 49,917 Restricted stock 23,678 Diluted EPS $ 7,561 7,538,409 $ 1.00 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies. | |
Commitments and Contingencies | Note 13: Commitments and Contingencies Periodically, there have been various claims and lawsuits involving the Corporation, such as claims to enforce liens, condemnation proceedings on properties in which the Corporation holds security interests, claims involving the making and servicing of real property loans, employment matters and other issues in the ordinary course of and incidental to the Corporation’s business. These proceedings and the associated legal claims are often contested and the outcome of individual matters is not always predictable. Additionally, in some actions, it is difficult to assess potential exposure because the Corporation is still in the early stages of the litigation. The Corporation is not a party to any pending legal proceedings that it believes would have a material adverse effect on its financial condition, operations or cash flows. The Corporation conducts a portion of its operations in leased facilities and has maintenance contracts under non-cancelable agreements classified as operating leases, which include leases recorded under ASC 842 on liabilities for future lease obligations as well as assets representing the right to use the underlying leased assets (See Note 5 of the Notes to Consolidated Financial Statements). The following is a schedule of the Corporation’s lease and operating commitments: Amount Year Ending June 30, (In Thousands) 2023 $ 1,192 2024 589 2025 435 2026 250 2027 41 Thereafter — Total minimum payments required $ 2,507 For the years ended June 30, 2022 and 2021, the lease and operating commitment expense was approximately $1.8 million and $1.7 million, respectively. The Bank sold single-family mortgage loans to unrelated third parties with standard representation and warranty provisions in the ordinary course of its business activities. Under these provisions, the Bank is required to repurchase any previously sold loan for which the representations or warranties of the Bank prove to be inaccurate, incomplete or misleading. In the event of a borrower default or fraud, pursuant to a breached representation or warranty, the Bank may be required to reimburse the investor for any losses suffered. As of June 30, 2022 and 2021, the Bank maintained a non-contingent recourse liability related to these representations and warranties of $150,000 and $175,000, respectively. In addition, the Bank maintained a recourse liability of $10,000 and $25,000 at June 30, 2022 and 2021, respectively, for loans sold to the FHLB – San Francisco under the MPF program. In the ordinary course of business, the Corporation enters into contracts with third parties under which the third parties provide services on behalf of the Corporation. In many of these contracts, the Corporation agrees to indemnify the third party service provider under certain circumstances. The terms of the indemnity vary from contract to contract and the amount of the indemnification liability, if any, cannot be determined. The Corporation also enters into other contracts and agreements; such as, loan sale agreements, litigation settlement agreements, confidentiality agreements, loan servicing agreements, leases and subleases, among others, in which the Corporation agrees to indemnify third parties for acts by the Corporation’s agents, assignees and/or sub-lessees, and employees. Due to the nature of these indemnification provisions, the Corporation cannot calculate its aggregate potential exposure. Pursuant to their governing instruments, the Corporation and its subsidiaries provide indemnification to directors, officers, employees and, in some cases, agents of the Corporation against certain liabilities incurred as a result of their service on behalf of or at the request of the Corporation and its subsidiaries. It is not possible for the Corporation to determine the aggregate potential exposure resulting from the obligation to provide this indemnity. |
Derivative and Other Financial
Derivative and Other Financial Instruments with Off-Balance Sheet Risks | 12 Months Ended |
Jun. 30, 2022 | |
Derivative and Other Financial Instruments with Off-Balance Sheet Risks | |
Derivative and Other Financial Instruments with Off-Balance Sheet Risks | Note 14: Derivative and Other Financial Instruments with Off-Balance Sheet Risks The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit in the form of originating loans or providing funds under existing lines of credit, loan sale commitments to third parties and option contracts. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the accompanying Consolidated Statements of Financial Condition. The Corporation’s exposure to credit loss, in the event of non-performance by the counterparty to these financial instruments, is represented by the contractual amount of these instruments. The Corporation uses the same credit policies in entering into financial instruments with off-balance sheet risk as it does for on-balance sheet instruments. As of June 30, 2022 and 2021, the Corporation had commitments to extend credit on loans to be held for investment of $43.4 million and $21.9 million, respectively. The following table provides information at the dates indicated regarding undisbursed funds to borrowers on existing lines of credit with the Corporation as well as commitments to originate loans to be held for investment at the dates indicated below: June 30, Commitments 2022 2021 (In Thousands) Undisbursed loan funds – Construction loans $ 3,384 $ 4,479 Undisbursed lines of credit – Commercial business loans 541 460 Undisbursed lines of credit – Consumer loans 390 425 Commitments to extend credit on loans to be held for investment 43,386 21,887 Total $ 47,701 $ 27,251 The following table provides information regarding the allowance for loan losses for the undisbursed funds and commitments to extend credit on loans to be held for investment for the years ended June 30, 2022 and 2021: Year Ended June 30, (In Thousands) 2022 2021 Balance, beginning of the year $ 127 $ 126 Provision 3 1 Balance, end of the year $ 130 $ 127 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jun. 30, 2022 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | Note 15: Fair Value of Financial Instruments The Corporation adopted ASC 820, “Fair Value Measurements and Disclosures,” and elected the fair value option pursuant to ASC 825, “Financial Instruments” on single-family loans originated for sale. ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 825 permits entities to elect to measure many financial instruments and certain other assets and liabilities at fair value on an instrument-by-instrument basis (the “Fair Value Option”) at specified election dates. At each subsequent reporting date, an entity is required to report unrealized gains and losses on items in earnings for which the fair value option has been elected. The objective of the Fair Value Option is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. The following table describes the difference at the dates indicated between the aggregate fair value and the aggregate unpaid principal balance of loans held for investment at fair value: Aggregate Unpaid Net Aggregate Principal Unrealized (In Thousands) Fair Value Balance Loss As of June 30, 2022: Loans held for investment, at fair value $ 1,396 $ 1,569 $ (173) As of June 30, 2021: Loans held for investment, at fair value $ 1,874 $ 1,934 $ (60) ASC 820 establishes a three-level valuation hierarchy that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Level 2 - Observable inputs other than Level 1 such as: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated to observable market data for substantially the full term of the asset or liability. Level 3 - Unobservable inputs for the asset or liability that use significant assumptions, including assumptions of risks. These unobservable assumptions reflect the Corporation’s estimate of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of pricing models, discounted cash flow models and similar techniques. ASC 820 requires the Corporation to maximize the use of observable inputs and minimize the use of unobservable inputs. If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation. The Corporation’s financial assets and liabilities measured at fair value on a recurring basis consist of investment securities available for sale, loans held for investment at fair value and interest-only strips; while non-performing loans and MSA are measured at fair value on a nonrecurring basis. Investment securities - available for sale are primarily comprised of U.S. government agency MBS, U.S. government sponsored enterprise MBS and privately issued CMO. The Corporation utilizes quoted prices in active markets for similar securities for its fair value measurement of MBS (Level 2) and broker price indications for similar securities in non-active markets for its fair value measurement of the privately issued CMO (Level 3). Loans held for investment at fair value are primarily single-family loans which have been transferred from loans held for sale. The fair value is determined by management estimates of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for the interest rate characteristics of each loan (Level 3). Non-performing loans are loans which are inadequately protected by the current sound worth and paying capacity of the borrowers or of the collateral pledged. The non-performing loans are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. The fair value of a non-performing loan is determined based on an observable market price or current appraised value of the underlying collateral. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the collateral. For non-performing loans which are restructured loans, the fair value is derived from discounted cash flow analysis (Level 3), except those which are in the process of foreclosure or 90 days delinquent for which the fair value is derived from the appraised value of its collateral (Level 2). For other non-performing loans which are not restructured loans, other than non-performing commercial real estate loans, the fair value is derived from relative value analysis: historical experience and management estimates by loan type for which collectively evaluated allowances are assigned (Level 3); or the appraised value of its collateral for loans which are in the process of foreclosure or where borrowers file bankruptcy (Level 2). For non-performing commercial real estate loans, the fair value is derived from the appraised value of its collateral (Level 2). Non-performing loans are reviewed and evaluated on at least a quarterly basis for additional allowance and adjusted accordingly, based on the same factors identified above. This loss is not recorded directly as an adjustment to current earnings or other comprehensive income (loss), but rather as a component in determining the overall adequacy of the allowance for loan losses. These adjustments to the estimated fair value of non-performing loans may result in increases or decreases to the provision for loan losses recorded in current earnings. The Corporation uses the amortization method for its MSA, which amortizes the MSA in proportion to and over the period of estimated net servicing income and assesses the MSA for impairment based on fair value at each reporting date. The fair value of the MSA is derived using the present value method; which includes a third party’s prepayment projections of similar instruments, weighted-average coupon rates, estimated servicing costs and discount interest rates (Level 3). The fair value of interest-only strips is derived using the same assumptions that are used to value the related MSA (Level 3). The Corporation’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Corporation’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The following fair value hierarchy table presents information at the dates indicated about the Corporation’s assets measured at fair value on a recurring basis: Fair Value Measurement at June 30, 2022 Using: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities - available for sale: U.S. government agency MBS $ — $ 1,698 $ — $ 1,698 U.S. government sponsored enterprise MBS — 865 — 865 Private issue CMO — — 113 113 Investment securities - available for sale — 2,563 113 2,676 Loans held for investment, at fair value — — 1,396 1,396 Interest-only strips — — 7 7 Total assets $ — $ 2,563 $ 1,516 $ 4,079 Liabilities: $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — Fair Value Measurement at June 30, 2021 Using: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities - available for sale: U.S. government agency MBS $ — $ 2,222 $ — $ 2,222 U.S. government sponsored enterprise MBS — 1,211 — 1,211 Private issue CMO — — 154 154 Investment securities - available for sale — 3,433 154 3,587 Loans held for investment, at fair value — — 1,874 1,874 Interest-only strips — — 10 10 Total assets $ — $ 3,433 $ 2,038 $ 5,471 Liabilities: $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — The following is a reconciliation of the beginning and ending balances during the periods shown of recurring fair value measurements recognized in the Consolidated Statements of Financial Condition using Level 3 inputs: Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) Private Loans Held For Interest- Issue Investment, at Only (In Thousands) CMO fair value (1) Strips Total Beginning balance at June 30, 2021 $ 154 $ 1,874 $ 10 $ 2,038 Total gains or losses (realized/unrealized): Included in earnings — (113) — (113) Included in other comprehensive income (loss) (7) — (3) (10) Purchases — — — — Issuances — — — — Settlements (34) (365) — (399) Transfers in and/or out of Level 3 — — — — Ending balance at June 30, 2022 $ 113 $ 1,396 $ 7 $ 1,516 (1) The valuation of loans held for investment at fair value includes management’s estimate of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for interest rate characteristics. Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) Private Loans Held For Interest- Issue Investment, at Only (In Thousands) CMO fair value (1) Strips Total Beginning balance at June 30, 2020 $ 197 $ 2,258 $ 14 $ 2,469 Total gains or losses (realized/ unrealized): Included in earnings — 51 — 51 Included in other comprehensive income (loss) 9 — (4) 5 Purchases — — — — Issuances — — — — Settlements (52) (435) — (487) Transfers in and/or out of Level 3 — — — — Ending balance at June 30, 2021 $ 154 $ 1,874 $ 10 $ 2,038 (1) The valuation of loans held for investment at fair value includes management’s estimate of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for interest rate characteristics. The following fair value hierarchy table presents information about the Corporation’s assets measured at fair value at the dates indicated on a nonrecurring basis: Fair Value Measurement at June 30, 2022 Using: (In Thousands) Level 1 Level 2 Level 3 Total Non-performing loans $ — $ 515 $ 908 $ 1,423 Mortgage servicing assets — — 168 168 Total $ — $ 515 $ 1,076 $ 1,591 Fair Value Measurement at June 30, 2021 Using: (In Thousands) Level 1 Level 2 Level 3 Total Non-performing loans $ — $ 899 $ 7,747 $ 8,646 Mortgage servicing assets — — 208 208 Total $ — $ 899 $ 7,955 $ 8,854 The following table presents additional information about valuation techniques and inputs used for assets and liabilities, including derivative financial instruments, which are measured at fair value and categorized within Level 3 as of June 30, 2022: Impact to Fair Value Valuation As of from an June 30, Valuation Range (1) Increase in (Dollars In Thousands) 2022 Techniques Unobservable Inputs (Weighted Average) Inputs (2) Assets: Securities available-for sale: Private issue CMO $ 113 Market comparable pricing Comparability adjustment 0.96% Increase Loans held for investment, at fair value $ 1,396 Relative value analysis Broker quotes 91.1% - 98.0% (93.4% ) of par Increase Credit risk factor 1.2% - 100.0% (4.6%) Decrease Non-performing loans (3) $ 722 Discounted cash flow Default rates 5.0% Decrease Non-performing loans (4) $ 186 Relative value analysis Credit risk factor 20.0% Decrease Mortgage servicing assets $ 168 Discounted cash flow Prepayment rate (CPR) 4.8% - 60.0% (10.9%) Decrease Discount rate 9.0% - 10.5% (9.0%) Decrease Interest-only strips $ 7 Discounted cash flow Prepayment rate (CPR) 9.5% - 32.0% (30.6%) Decrease Discount rate 9.0% Decrease Liabilities: None (1) The range is based on the historical estimated fair values and management estimates. (2) Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements. (3) Consist of restructured loans. (4) Consist of other non-performing loans, excluding restructured loans. The significant unobservable inputs used in the fair value measurement of the Corporation’s assets and liabilities include the following: CMO offered quotes, prepayment rates and discount rates, among others. Significant increases or decreases in any of these inputs in isolation could result in significantly lower or higher fair value measurement. The various unobservable inputs used to determine valuations may have similar or diverging impacts on valuation. For the fiscal year ended June 30, 2022, there were no significant changes to the Corporation's valuation techniques and inputs that had, or are expected to have, a material impact on its consolidated financial position or results of operations. The carrying amount and fair value of the Corporation’s other financial instruments as of June 30, 2022 and 2021 were as follows: June 30, 2022 Carrying Fair (In Thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Loans held for investment, not recorded at fair value $ 938,596 $ 892,339 $ — $ — $ 892,339 Investment securities - held to maturity $ 185,745 $ 171,724 $ — $ 171,724 $ — FHLB – San Francisco stock $ 8,239 $ 8,239 $ — $ 8,239 $ — Financial liabilities: Deposits $ 955,504 $ 917,220 $ — $ — $ 917,220 Borrowings $ 85,000 $ 84,299 $ — $ — $ 84,299 June 30, 2021 Carrying Fair (In Thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Loans held for investment, not recorded at fair value $ 849,086 $ 848,727 $ — $ — $ 848,727 Investment securities - held to maturity $ 223,306 $ 224,721 $ — $ 224,721 $ — FHLB – San Francisco stock $ 8,155 $ 8,155 $ — $ 8,155 $ — Financial liabilities: Deposits $ 937,973 $ 904,673 $ — $ — $ 904,673 Borrowings $ 100,983 $ 104,526 $ — $ — $ 104,526 Loans held for investment, not recorded at fair value: For loans that reprice frequently at market rates, the carrying amount approximates the fair value. For fixed-rate loans, the fair value is determined by either (i) discounting the estimated future cash flows of such loans over their estimated remaining contractual maturities using a current interest rate at which such loans would be made to borrowers, or (ii) quoted market prices. Investment securities - held to maturity: The investment securities - held to maturity consist of time deposits at CRA qualified minority financial institutions, U.S. SBA securities, U.S. government sponsored enterprise MBS and U.S. government sponsored enterprise CMOs. Due to the short-term nature of the time deposits, the principal balance approximated fair value (Level 2). For the MBS, the U.S. SBA securities and U.S. government sponsored enterprise CMOs, the Corporation utilizes quoted prices in active markets for similar securities for its fair value measurement (Level 2). FHLB – San Francisco stock: The carrying amount reported for FHLB – San Francisco stock approximates fair value. When redeemed, the Corporation will receive an amount equal to the par value of the stock. Deposits: The fair value of time deposits is estimated using a discounted cash flow calculation. The discount rate is based upon rates currently offered for deposits of similar remaining maturities. The fair value of transaction accounts (checking, money market and savings accounts) is estimated using a discounted cash flow calculation and management estimates of current market conditions. Borrowings: The fair value of borrowings has been estimated using a discounted cash flow calculation. The discount rate on such borrowings is based upon rates currently offered for borrowings of similar remaining maturities. The Corporation has various processes and controls in place to ensure that fair value is reasonably estimated. The Corporation generally determines fair value of their Level 3 assets and liabilities by using internally developed models which primarily utilize discounted cash flow techniques and prices obtained from independent management services or brokers. The Corporation performs due diligence procedures over third-party pricing service providers in order to support their use in the valuation process. While the Corporation believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. For the fiscal year ended June 30, 2022, there were no significant changes to the Corporation’s valuation techniques that had, or are expected to have, a material impact on its consolidated financial position or results of operations. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 12 Months Ended |
Jun. 30, 2022 | |
Revenue From Contracts With Customers | |
Revenue From Contracts With Customers | Note 16: Revenue From Contracts With Customers In accordance with ASC 606, revenues are recognized when goods or services are transferred to the customer in exchange for the consideration the Corporation expects to be entitled to receive. The largest portion of the Corporation’s revenue is from interest income, which is not in the scope of ASC 606. All of the Corporation’s revenue from contracts with customers in the scope of ASC 606 is recognized in non-interest income. If a contract is determined to be within the scope of ASC 606, the Corporation recognizes revenue as it satisfies a performance obligation. Payments from customers are generally collected at the time services are rendered, monthly, or quarterly. For contracts with customers within the scope of ASC 606, revenue is either earned at a point in time or revenue is earned over time. Examples of revenue earned at a point in time are automated teller machine ("ATM") transaction fees, wire transfer fees, overdraft fees and interchange fees. Revenue is primarily based on the number and type of transactions that are generally derived from transactional information accumulated by the Bank's systems and is recognized immediately as the transactions occur or upon providing the service to complete the customer's transaction. The Corporation is generally the principal in these contracts, with the exception of interchanges fees, in which case the Corporation is acting as the agent and records revenue net of expenses paid to the principal. Examples of revenue earned over time, which generally occur on a monthly basis, are deposit account maintenance fees, investment advisory fees, merchant revenue, trust and investment management fees and safe deposit box fees. Revenue is generally derived from transactional information accumulated by its systems or those of third-parties and is recognized as the related transactions occur or services are rendered to the customer. Disaggregation of Revenue: The following table includes the Corporation's non-interest income disaggregated by type of services for the fiscal years ended June 30, 2022 and 2021: Year Ended June 30, Type of Services 2022 2021 (In Thousands) Loan servicing and other fees (1) $ 1,056 $ 1,170 Deposit account fees 1,302 1,247 Card and processing fees 1,639 1,605 Other (2) 719 551 Total non-interest income $ 4,716 $ 4,573 (1) Not in scope of ASC 606. (2) Includes BOLI of $188 thousand and $191 thousand and net gain on sale of loans of $40 thousand and net loss on sale of loans of $103 thousand for the years ended June 30, 2022 and 2021, respectively, which are not in scope of ASC 606. For the fiscal years ended June 30, 2022 and 2021, substantially all of the Corporation's revenues within the scope of ASC 606 are for performance obligations satisfied at a specified date. Revenues recognized in scope of ASC 606: Deposit account fees: Fees are earned on the Bank's deposit accounts for various products offered to or services performed for the Bank's customers. Fees include business account fees, non-sufficient fund fees, ATM fees and others. These fees are recognized on a daily, monthly or quarterly basis, depending on the type of service. Card and processing fees: Debit interchange income represents fees earned when a debit card issued by the Bank is used. The Bank earns interchange fees from cardholder transactions through a third party payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The performance obligation is satisfied and the fees are earned when the cost of the transaction is charged to the cardholders' debit card. Certain expenses directly associated with the debit cards are recorded on a net basis with the interchange income. Other: Includes asset management fees, stop payment fees, wire services fees, safe deposit box fees and other fees earned on other services, such as merchant services or occasional non-recurring type services, are recognized at the time of the event or the applicable billing cycle. Asset management fees are variable, since they are based on the underlying portfolio value, which is subject to market conditions and amounts invested by customers through a third-party provider. Asset management fees are recognized over the period that services are provided, and when the portfolio values are known or can be estimated at the end of each month. |
Holding Company Condensed Finan
Holding Company Condensed Financial Information | 12 Months Ended |
Jun. 30, 2022 | |
Holding Company Condensed Financial Information | |
Holding Company Condensed Financial Information | Note 17: Holding Company Condensed Financial Information This information should be read in conjunction with the other notes to the consolidated financial statements. The following is the Condensed Statements of Financial Condition for Provident Financial Holdings (Holding Company only) as of June 30, 2022 and 2021 and Condensed Statements of Operations and Cash Flows for the fiscal years ended June 30, 2022 and 2021. Condensed Statements of Financial Condition June 30, (In Thousands) 2022 2021 Assets Cash and cash equivalents $ 3,751 $ 5,576 Investment in subsidiary 124,875 121,696 Other assets 61 60 $ 128,687 $ 127,332 Liabilities and Stockholders’ Equity Other liabilities $ 37 $ 52 Stockholders’ equity 128,650 127,280 $ 128,687 $ 127,332 Condensed Statements of Operations Year Ended June 30, (In Thousands) 2022 2021 Dividend from the Bank $ 7,500 $ 5,000 Interest and other income 3 5 Total income 7,503 5,005 General and administrative expenses 1,219 1,117 Earnings before income taxes and equity in undistributed earnings of the Bank 6,284 3,888 Income tax benefit (358) (328) Earnings before equity in undistributed earnings of the Bank 6,642 4,216 Equity in undistributed earnings of the Bank 2,451 3,345 Net income $ 9,093 $ 7,561 Condensed Statements of Cash Flows Year Ended June 30, (In Thousands) 2022 2021 Cash flow from operating activities: Net income $ 9,093 $ 7,561 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of the Bank (2,451) (3,345) (Increase) decrease in other assets (1) 48 Decrease in other liabilities (15) (2) Net cash provided by operating activities 6,626 4,262 Cash flow from financing activities: Exercise of stock options — 981 Treasury stock purchases (4,305) (2,336) Cash dividends (4,146) (4,173) Net cash used for financing activities (8,451) (5,528) Net decrease in cash during the year (1,825) (1,266) Cash and cash equivalents at beginning of year 5,576 6,842 Cash and cash equivalents at end of year $ 3,751 $ 5,576 |
Government Assistance
Government Assistance | 12 Months Ended |
Jun. 30, 2022 | |
Government Assistance | |
Government Assistance | Note 18: Government Assistance The Employee Retention Tax Credit (“ERTC”) was created as part of the CARES Act to encourage businesses to continue paying employees by providing a credit to the eligible employer for wages paid to eligible employees. The refundable credit is available for wages paid from March 13, 2020 through September 30, 2021 and can be utilized even if companies received Paycheck Protection Program (“PPP”) loans. For calendar year 2021, the maximum ERTC was $7,000 per eligible employee per quarter. The 2021 credit was computed at a rate of 70 percent of qualified wages paid, up to $10,000 per eligible employee, per quarter. For Eligible Employers with less than 500 average full-time employees in 2019 and experienced a decline in gross receipts in current quarter or prior quarter compared to the same quarter in calendar year 2019, the credit was available for all employees receiving wages in 2021. The Corporation recognized an ERTC of $1.2 million in the first quarter of fiscal 2022 and $2.4 million in the fourth quarter of fiscal 2021. The ERTC was recorded in the Consolidated Statement of Operations for the respective periods under Salaries and employee benefits expense as a reduction to the total expense and the receivables were recorded in the Consolidated Statements of Financial Condition under Prepaid expenses and other assets. Also, the ERTC is a non-taxable credit for state income tax purposes. As of June 30, 2022 and 2021, the total outstanding ERTC was $3.6 million and $2.4 million, respectively. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jun. 30, 2022 | |
Subsequent Event | |
Subsequent Event | Note 19: Subsequent Events On July 28, 2022, the Corporation announced that the Corporation’s Board of Directors declared a quarterly cash dividend of $0.14 per share. Shareholders of the Corporation’s common stock at the close of business on August 18, 2022 were entitled to receive the cash dividend, which will be payable on September 8, 2022. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Organization and Summary of Significant Accounting Policies | |
Basis of presentation | Basis of presentation The consolidated financial statements include the accounts of Provident Financial Holdings, Inc., and its wholly owned subsidiary, Provident Savings Bank, F.S.B. (collectively, the “Corporation”). All inter-company balances and transactions have been eliminated. Provident Savings Bank, F.S.B. (the “Bank”) converted from a federally chartered mutual savings bank to a federally chartered stock savings bank effective June 27, 1996. Provident Financial Holdings, Inc., a Delaware corporation organized by the Bank, acquired all of the capital stock of the Bank issued in the conversion; the transaction was recorded on a book value basis. The Corporation has determined that it operates in one business segment through the Bank. The Bank's activities include attracting deposits, offering banking services and originating and purchasing single-family, multi-family, commercial real estate, construction and other mortgage loans and, to a lesser extent, commercial business and consumer loans held for investment. Deposits are collected primarily from 13 banking locations located in Riverside and San Bernardino counties in California. Additional activities may include originating saleable single-family loans, primarily fixed-rate first mortgages. Loans are primarily originated and purchased in Southern and Northern California. |
Use of estimates | Use of estimates The accounting and reporting policies of the Corporation conform to generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the loan repurchase reserve, the valuation of investment securities, the valuation of loans held for investment at fair value, deferred tax assets, loan servicing assets, real estate owned and deferred compensation costs. The following accounting policies, together with those disclosed elsewhere in the consolidated financial statements, represent the significant accounting policies of Provident Financial Holdings, Inc. and the Bank. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand and due from banks, as well as overnight deposits placed at the Federal Reserve Bank – San Francisco and correspondent banks. |
Investment securities | Investment securities The Corporation classifies its qualifying investments as available for sale or held to maturity. The Corporation classifies investments as held to maturity when it has the ability and it is management’s positive intent to hold such securities to maturity. Securities held to maturity are carried at amortized historical cost. All other securities are classified as available for sale and are carried at fair value. Fair value generally is determined based upon quoted market prices. Changes in net unrealized gains (losses) on securities available for sale are included in accumulated other comprehensive income, net of tax. Gains and losses on sale or dispositions of investment securities are included in non-interest income and are determined using the specific identification method. Purchase premiums and discounts are amortized over the expected average life of the securities using the effective interest method. Investment securities are reviewed annually for possible other-than-temporary impairment (“OTTI”). For debt securities, an OTTI is evident if the Corporation intends to sell the debt security or will more likely than not be required to sell the debt security before full recovery of the entire amortized cost basis is realized. However, even if the Corporation does not intend to sell the debt security and will not likely be required to sell the debt security before recovery of its entire amortized cost basis, the Corporation must evaluate expected cash flows to be received and determine if a credit loss has occurred. In the event of a credit loss, the credit component of the impairment is recognized within non-interest income and the non-credit component is recognized through accumulated other comprehensive income, net of tax. |
Loans held for investment | Loans held for investment Loans held for investment consist of long-term adjustable and fixed rate loans secured by first trust deeds on single-family residences and multi-family and commercial real estate loans secured by commercial property, land and other residential properties. These loans are generally offered to customers and businesses located in California. Net loan origination fees and certain direct origination expenses are deferred and amortized to interest income over the contractual life of the loan using the effective interest method. Amortization is discontinued for non-performing loans. Interest receivable represents, for the most part, the current month’s interest, which will be included as a part of the borrower’s next monthly loan payment. Interest receivable is accrued only if deemed collectible. Loans are placed on non-performing status when they become 90 days past due or if the loan is deemed impaired. When a loan is placed on non-performing status, interest accrued but not received is reversed against interest income. Interest income on non-performing loans is subsequently recognized only to the extent that cash is received and the principal balance is deemed collectible. If the principal balance is not deemed collectible, the entire payment received (principal and interest) is applied to the outstanding loan balance. Non-performing loans that become current as to both principal and interest are returned to accrual status after demonstrating satisfactory payment history (usually six consecutive months) and when future payments are expected to be collected. |
Allowance for loan losses | Allowance for loan losses The allowance for loan losses involves significant judgment and assumptions by management, which has a material impact on the carrying value of net loans. Management considers the accounting estimate related to the allowance for loan losses a critical accounting estimate because it is highly susceptible to changes from period to period, requiring management to make assumptions about probable incurred losses inherent in the loan portfolio at the balance sheet date. The impact of a sudden large loss could deplete the allowance and require increased provisions to replenish the allowance, which would negatively affect earnings. The allowance is based on two principles of accounting: (i) Accounting Standards Codification (“ASC”) 450, “Contingencies,” which requires that losses be accrued when they are probable of occurring and can be estimated; and (ii) ASC 310, “Receivables,” which requires that losses be accrued for non-performing loans that may be determined on an individually evaluated basis or based on an aggregated pooling method. The allowance has two components: collectively evaluated allowances and individually evaluated allowances. Each of these components is based upon estimates that can change over time. The allowance is based on historical experience and, as a result, can differ from actual losses incurred in the future. The Corporation also applies qualitative loss factors by assessing general economic indicators such as gross domestic product, retail sales, unemployment rates, employment growth, California home sales and median California home prices, as well as peer group data, reflecting the effect of events that have occurred but are not yet evidenced in the historical data. The historical data is reviewed at least quarterly and adjustments are made as needed. Management considers, based on currently available information, the allowance for loan losses sufficient to absorb probable losses inherent in loans held for investment. Various techniques are used to arrive at an individually evaluated allowance, including discounted cash flows and the fair market value of collateral. The use of these techniques is inherently subjective and the actual losses could be greater or less than the estimates. |
Allowance for unfunded loan commitments | Allowance for unfunded loan commitments The Corporation maintains the allowance for unfunded loan commitments at a level that is adequate to absorb estimated probable losses related to these unfunded credit facilities. The Corporation determines the adequacy of the allowance based on periodic evaluations of the unfunded credit facilities, including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers, and the terms and expiration dates of the unfunded credit facilities. The allowance for unfunded loan commitments is recorded in other liabilities on the Consolidated Statements of Financial Condition. Net adjustments to the allowance for unfunded loan commitments are included in other non-interest expense on the Consolidated Statements of Operations. |
Loans in forbearance | Loans in forbearance On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act for 2020, as amended (“CARES Act”) was signed into law and on April 7, 2020, the Board of Governors of the Federal Reserve System (“Federal Reserve”), Federal Deposit Insurance Corporation (“FDIC”), National Credit Union Administration, Office of the Comptroller of the Currency (“OCC “) and Consumer Financial Protection Bureau issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus ("Interagency Statement"). Among other things, the CARES Act and Interagency Statement provided relief to borrowers, including the opportunity to defer loan payments while not negatively affecting their credit standing. For commercial and consumer customers, the Corporation provided relief options, including payment deferrals and fee waivers. All loans modified due to COVID-19 pandemic were separately monitored and any request for continuation of relief beyond the initial modification were reassessed to determine if a further modification should be granted and if a downgrade in risk rating was appropriate. After the payment deferral period (forbearance period), normal loan payments once again became due and payable. The forbearance amount will be due and payable in full as a balloon payment at the end of the loan term or sooner if the loan becomes due and payable in full at an earlier date. As of March 31, 2021, the Corporation ceased accepting new forbearance requests and as of June 30, 2022, the Corporation had no pending requests for this type of payment relief. As of June 30, 2022, the Corporation had no forbearance loans that were modified and operating under forbearance agreements in accordance with the CARES Act and Interagency Statement. For additional information, see Note 3 of the Notes to Consolidated Financial Statements. |
Troubled debt restructuring (restructured loans) | Troubled debt restructuring (“restructured loans”) A restructured loan is a loan which the Corporation, for reasons related to a borrower’s financial difficulties, grants a more than insignificant concession to the borrower that the Corporation would not otherwise consider. These financial difficulties include, but are not limited to, the borrowers’ default status on any of their debts, bankruptcy and recent changes in their financial circumstances (loss of job, etc.). The loan terms which have been modified or restructured due to a borrower’s financial difficulty, may include but are not limited to: a) A reduction in the stated interest rate. b) An extension of the maturity at an interest rate below market. c) A reduction in the accrued interest. d) Extensions, deferrals, renewals and rewrites. e) Loans that have been discharged in a Chapter 7 Bankruptcy that have not been reaffirmed by the borrower. To qualify for restructuring, a borrower must provide evidence of creditworthiness such as, current financial statements, most recent income tax returns, current paystubs, current W-2s, and most recent bank statements, among other documents, which are then verified by the Corporation. The Corporation re-underwrites the loan with the borrower’s updated financial information, new credit report, current loan balance, new interest rate, remaining loan term, updated property value and modified payment schedule, among other considerations, to determine if the borrower qualifies. The Corporation measures the allowance for loan losses of restructured loans based on the difference between the loan’s original carrying amount and the present value of expected future cash flows discounted at the original effective yield of the loan. Based on the OCC guidance with respect to restructured loans and to conform to general practices within the banking industry, the Corporation maintains certain restructured loans on accrual status, provided there is reasonable assurance of repayment and performance, consistent with the modified terms based upon a current, well-documented credit evaluation. All other restructured loans are classified as “Substandard” and placed on non-performing status. The Corporation typically upgrades restructured loans to the pass category if the borrower has demonstrated satisfactory contractual payments for at least six |
Non-performing loans | Non-performing loans The Corporation assesses loans individually and classifies as non-performing when the accrual of interest has been discontinued, loans have been restructured or management has serious doubts about the future collectability of principal and interest, even though the loans may currently be performing. Factors considered in determining classification include, but are not limited to, expected future cash flows, the financial condition of the borrower and current economic conditions. The Corporation measures each non-performing loan based on ASC 310, establishes a collectively evaluated or individually evaluated allowance and charges off those loans or portions of loans deemed uncollectible. |
Real estate owned | Real estate owned Real estate acquired through foreclosure is initially recorded at the fair value of the real estate acquired, less estimated selling costs. Subsequent to foreclosure, the Corporation charges current earnings for estimated losses if the carrying value of the property exceeds its fair value. Gains or losses on the sale of real estate are recognized upon disposition of the property. Costs relating to improvement, maintenance and repairs of the property are expensed as incurred under gain (loss) on sale and operations of real estate owned acquired in the settlement of loans within the Consolidated Statements of Operations. |
Impairment of long-lived assets | Impairment of long-lived assets The Corporation reviews its long-lived assets for impairment annually or when events or circumstances indicate that the carrying amount of these assets may not be recoverable. Long-lived assets include buildings, land, fixtures, furniture and equipment. An asset is considered impaired when the expected discounted cash flows over the remaining useful life are less than the net book value. When impairment is indicated for an asset, the amount of impairment loss is the excess of the net book value over its fair value. |
Premises and equipment | Premises and equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed primarily on a straight-line basis over the estimated useful lives as follows: Buildings 10 to 40 years Furniture and fixtures 3 to 10 years Automobiles 3 to 5 years Computer equipment 3 to 5 years Leasehold improvements are amortized over the lesser of their respective lease terms or the useful life of the improvement, which ranges from one |
Income taxes | Income taxes The Corporation accounts for income taxes in accordance with ASC 740, “Income Taxes.” ASC 740 requires the affirmative evaluation that it is more likely than not, based on the technical merits of a tax position, that an enterprise is entitled to economic benefits resulting from positions taken in income tax returns. If a tax position does not meet the more-likely-than-not recognition threshold, the benefit of that position is not recognized in the financial statements. ASC 740 requires that when determining the need for a valuation allowance against a deferred tax asset, management must assess both positive and negative evidence with regard to the realizability of the tax losses represented by that asset. To the extent available, if sources of taxable income are insufficient to absorb tax losses, a valuation allowance is necessary. Sources of taxable income for this analysis include prior years’ tax returns, the expected reversals of taxable temporary differences between book and tax income, prudent and feasible tax-planning strategies, and future taxable income. The deferred income tax asset related to the allowance for loan losses will be realized when actual charge-offs are made against the allowance. Based on the availability of loss carry-backs and projected taxable income during the periods for which loss carry-forwards are available, management believes it is more likely than not the Corporation will realize the deferred tax asset. The Corporation continues to monitor the deferred tax asset on a quarterly basis for a valuation allowance. The future realization of these tax benefits primarily hinges on adequate future earnings to utilize the tax benefit. Prospective earnings or losses, tax law changes or capital changes could prompt the Corporation to reevaluate the assumptions which may be used to establish a valuation allowance. As of June 30, 2022 and 2021, the estimated deferred tax asset, which is included in prepaid expenses and other assets, was $1.4 million and $2.5 million, respectively. The Corporation maintains net deferred tax assets for deductible temporary tax differences, such as loss reserves, deferred compensation, non-accrued interest and unrealized gains, among other items. The decrease in the net deferred tax asset resulted primarily from a decreases in loan loss reserves and deferred loan costs. The Corporation did not have any liabilities for uncertain tax positions or any known unrecognized tax benefit at June 30, 2022 or 2021. |
Bank owned life insurance (BOLI) | Bank owned life insurance ("BOLI") ASC 715-60-35, "Accounting for Deferred Compensation and Post-retirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements," requires an employer to recognize obligations associated with endorsement split-dollar life insurance arrangements that extend into the participant’s post-employment benefit cost for the continuing life insurance or based on the future death benefit depending on the contractual terms of the underlying agreement. The Corporation adopted ASC 715-60-35 using the latter option, i.e., based on the future death benefit. The Bank purchases BOLI policies on the lives of certain executive officers while they are employed by the Bank and is the owner and beneficiary of the policies. The Bank invests in BOLI to provide an efficient form of funding for long-term retirement and other employee benefits costs. The Bank records these BOLI policies within prepaid expenses and other assets in the Consolidated Statements of Financial Condition at each policy’s respective cash surrender value, with net changes recorded in other non-interest income in the Consolidated Statements of Operations. |
Cash dividend and stock repurchases | Cash dividend A declaration or payment of dividends is at the discretion of the Corporation’s Board of Directors, who take into account the Corporation’s financial condition, results of operations, tax considerations, capital requirements, industry standards, economic conditions and other factors, including the regulatory restrictions which affect the payment of dividends by the Bank to the Corporation. Under Delaware law, dividends may be paid either out of surplus or, if there is no surplus, out of net profits for the current fiscal year and/or the preceding fiscal year in which the dividend is declared. For additional information, see Note 19 of the Notes to Consolidated Financial Statements regarding the subsequent event related to the cash dividend. Stock repurchases The Corporation repurchased 257,285 shares of its common stock with an average cost of $16.73 per share during fiscal 2022 pursuant to its April 2020 stock repurchase plan that expired on April 27, 2022. The Board of Directors approved a new stock repurchase plan on April 28, 2022 which authorized 364,259 shares for repurchase and expires on April 28, 2023, all of which remain available for purchase at June 30, 2022. |
Earnings per common share (EPS) | Earnings per common share (“EPS”) Basic EPS represents net income divided by the weighted average common shares outstanding during the period excluding any potential dilutive effects. Diluted EPS gives effect to any potential issuance of common stock that would have caused basic EPS to be lower as if the issuance had already occurred. Accordingly, diluted EPS reflects an increase in the weighted average shares outstanding as a result of the assumed exercise of stock options and the vesting of restricted stock. The computation of diluted EPS does not assume exercise of stock options and vesting of restricted stock that would have an anti-dilutive effect on EPS. |
Stock-based compensation | Stock-based compensation ASC 718, “Compensation – Stock Compensation,” requires companies to recognize in the Consolidated Statements of Operations the grant-date fair value of stock options and other equity-based compensation issued to employees and directors. Stock-based compensation expense, inclusive of restricted stock expense, recognized in the Consolidated Statements of Operations for the years ended June 30, 2022 and 2021 was $798,000 and $1.3 million, respectively. |
Employee Stock Ownership Plan (ESOP) | Employee Stock Ownership Plan ("ESOP") The Corporation recognizes compensation expense when the Bank contributes funds to the ESOP for the purchase of the Corporation’s common stock to be allocated to the ESOP participants. Since the contributions are discretionary, the benefits payable under the ESOP cannot be estimated. |
Restricted stock | Restricted stock The Corporation recognizes compensation expense over the vesting period of the shares awarded, equal to the fair value of the shares at the award date. A total of $747,000 and $1.2 million of restricted stock expense was amortized during fiscal 2022 and 2021, respectively. |
Post retirement benefits | Post-retirement benefits The estimated obligation for post-retirement health care and life insurance benefits is determined based on an actuarial computation of the cost of current and future benefits for the eligible (grandfathered) retirees and employees. The post retirement benefit liability is included in accounts payable, accrued interest and other liabilities in the Consolidated Statements of Financial Condition. Effective July 1, 2003, the Corporation discontinued the post-retirement health care and life insurance benefits to any employee not previously qualified (grandfathered) for these benefits. At June 30, 2022 and 2021, the accrued liability for post-retirement benefits was $174,000 and $125,000, respectively, which was fully funded consistent with actuarially determined estimates of the future obligation. |
Comprehensive income | Comprehensive income ASC 220, “Comprehensive Income,” requires that realized revenue, expenses, gains and losses be included in net income (loss). Unrealized gains (losses) on available for sale securities and interest-only strips are reported as a separate component of the stockholders’ equity section of the Consolidated Statements of Financial Condition and the change in the unrealized gains (losses) are reported on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Stockholders’ Equity. |
Accounting standard updates ("ASU") | Accounting standard updates (“ASU”) ASU 2021-10: In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,” This ASU requires the following annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy: (1) Information about the nature of the transactions and the related accounting policy used to account for the transactions, (2) The line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item and (3) Significant terms and conditions of the transactions, including commitments and contingencies. This ASU is effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. The Corporation has adopted this ASU and it did not have a material impact on the Corporation’s consolidated financial statements. See Note 18 for additional disclosure. ASU 2016-13: In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” and subsequent amendments to the initial guidance in November 2018, ASU No. 2018-19, April 2019, ASU 2019-04, May 2019, ASU 2019-05, November 2019, ASU 2019-11, February 2020, ASU 2020-02, March 2020, ASU 2020-03 and March 2022, ASU 2022-02, all of which clarifies codification and corrects unintended application of the guidance. In November 2019, the FASB also issued ASU 2019-10, “Financial Instruments — Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates” extending the adoption date for certain registrants, including the Corporation. These ASUs will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Corporation is evaluating its current expected loss methodology of its loan and investment portfolios to identify the necessary modifications in accordance with these standards and expects a change in the processes and procedures to calculate the allowance for loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. A valuation adjustment to its allowance for loan losses or investment portfolio that is identified in this process will be reflected as a one-time adjustment in equity rather than earnings upon adoption. The Corporation is in the process of compiling historical data that will be used to calculate expected credit losses on its loan portfolio to ensure the Corporation is fully compliant with these ASUs at the adoption date and is evaluating the potential impact upon adoption that these ASUs will have on the Corporation’s Consolidated Financial Statements. Once adopted, the Corporation anticipates the allowance for loan losses to increase through a one-time adjustment to retained earnings, however, until the evaluation is complete the magnitude of the potential increase will be unknown. ASU 2020-04: In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of reference Rate Reform on Financial Reporting. This ASU applies to contracts, hedging relationships and other transactions that reference LIBOR or other rate references expected to be discontinued because of reference rate reform. The ASU permits an entity to make necessary modifications to eligible contracts or transactions without requiring contract re- measurement or reassessment of a previous accounting determination. In January 2021, ASU 2021-01 clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the changes in the interest rates used for margining, discounting, or contract price alignment for derivative instruments that are being implemented as part of the market-wide transition to new reference rates (commonly referred to as the “discounting transition”). This ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Corporation is in the process of compiling data on the impact of reference rate reform and has not determined the impact of the adoption of this ASU on its consolidated financial statements. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Organization and Summary of Significant Accounting Policies | |
Schedule of Estimated Useful Lives | Buildings 10 to 40 years Furniture and fixtures 3 to 10 years Automobiles 3 to 5 years Computer equipment 3 to 5 years |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Investment Securities | |
Schedule of available-for-sale securities reconciliation | Gross Gross Estimated Amortized Unrealized Unrealized Fair Carrying June 30, 2022 Cost Gains (Losses) Value Value (In Thousands) Held to maturity U.S. government sponsored enterprise MBS (1) $ 180,492 $ 63 $ (13,945) $ 166,610 $ 180,492 U.S. government sponsored enterprise CMO (2) 3,913 — (150) 3,763 3,913 U.S. SBA securities (3) 940 11 — 951 940 Certificate of deposits 400 — — 400 400 Total investment securities - held to maturity 185,745 74 (14,095) 171,724 185,745 Available for sale U.S. government agency MBS (1) 1,698 6 (6) 1,698 1,698 U.S. government sponsored enterprise MBS (1) 865 4 (4) 865 865 Private issue CMO (2) 118 — (5) 113 113 Total investment securities - available for sale 2,681 10 (15) 2,676 2,676 Total investment securities $ 188,426 $ 84 $ (14,110) $ 174,400 $ 188,421 (1) Mortgage-backed securities (“MBS”). (2) Collateralized Mortgage Obligations (“CMO”). (3) Small Business Administration ("SBA"). Gross Gross Estimated Amortized Unrealized Unrealized Fair Carrying June 30, 2021 Cost Gains (Losses) Value Value (In Thousands) Held to maturity U.S. government sponsored enterprise MBS $ 220,448 $ 2,209 $ (810) $ 221,847 $ 220,448 U.S. SBA securities 1,858 16 — 1,874 1,858 Certificate of deposits 1,000 — — 1,000 1,000 Total investment securities - held to maturity 223,306 2,225 (810) 224,721 223,306 Available for sale U.S. government agency MBS 2,146 76 — 2,222 2,222 U.S. government sponsored enterprise MBS 1,197 14 — 1,211 1,211 Private issue CMO 151 3 — 154 154 Total investment securities - available for sale 3,494 93 — 3,587 3,587 Total investment securities $ 226,800 $ 2,318 $ (810) $ 228,308 $ 226,893 |
Schedule of investments with unrealized loss position | As of June 30, 2022 Unrealized Holding Losses Unrealized Holding Losses Unrealized Holding Losses (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses Held to maturity U.S. government sponsored enterprise MBS $ 121,844 $ 9,018 $ 35,528 $ 4,927 $ 157,372 $ 13,945 U.S. government sponsored enterprise CMO 3,764 150 — — 3,764 150 Total investment securities - held to maturity 125,608 9,168 35,528 4,927 161,136 14,095 Available for sale U.S government agency MBS 826 6 — — 826 6 U.S. government sponsored enterprise MBS 671 4 — — 671 4 Private issue CMO 113 5 — — 113 5 Total investment securities - available for sale 1,610 15 — — 1,610 15 Total investment securities $ 127,218 $ 9,183 $ 35,528 $ 4,927 $ 162,746 $ 14,110 As of June 30, 2021 Unrealized Holding Losses Unrealized Holding Losses Unrealized Holding Losses (In Thousands) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses Held to maturity U.S. government sponsored enterprise MBS $ 84,600 $ 810 $ — $ — $ 84,600 $ 810 Total investment securities - held to maturity 84,600 810 — — 84,600 810 Total investment securities $ 84,600 $ 810 $ — $ — $ 84,600 $ 810 |
Schedule of investments classified by contractual maturity | June 30, 2022 June 30, 2021 Estimated Estimated Amortized Fair Amortized Fair (In Thousands) Cost Value Cost Value Held to maturity Due in one year or less $ 1,427 $ 1,425 $ 1,209 $ 1,218 Due after one through five years 10,908 10,805 14,544 15,179 Due after five through ten years 77,167 72,625 90,798 91,780 Due after ten years 96,243 86,869 116,755 116,544 Total investment securities - held to maturity $ 185,745 $ 171,724 $ 223,306 $ 224,721 Available for sale Due in one year or less $ — $ — $ — $ — Due after one through five years — — — — Due after five through ten years 98 98 — — Due after ten years 2,583 2,578 3,494 3,587 Total investment securities - available for sale $ 2,681 $ 2,676 $ 3,494 $ 3,587 Total investment securities $ 188,426 $ 174,400 $ 226,800 $ 228,308 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Loans Held for Investment | |
Schedule of loans held for investment | Loans held for investment consisted of the following at June 30, 2022 and 2021: (In Thousands) June 30, 2022 June 30, 2021 Mortgage loans: Single-family $ 378,234 $ 268,272 Multi-family 464,676 484,408 Commercial real estate 90,429 95,279 Construction 3,216 3,040 Other 123 139 Commercial business loans 1,206 849 Consumer loans 86 95 Total loans held for investment, gross 937,970 852,082 Advance payments of escrows 47 157 Deferred loan costs, net 7,539 6,308 Allowance for loan losses (5,564) (7,587) Total loans held for investment, net $ 939,992 $ 850,960 |
Schedule of loans held for investment, contractual repricing | Adjustable Rate After After After Within One Year 3 Years 5 Years (In Thousands) One Year Through 3 Years Through 5 Years Through 10 Years Fixed Rate Total Mortgage loans: Single-family $ 49,101 $ 25,507 $ 35,862 $ 170,359 $ 97,405 $ 378,234 Multi-family 135,586 131,136 146,148 51,634 172 464,676 Commercial real estate 46,777 20,934 21,382 — 1,336 90,429 Construction 2,142 — — — 1,074 3,216 Other — — — — 123 123 Commercial business loans 869 — — — 337 1,206 Consumer loans 86 — — — — 86 Total loans held for investment, gross $ 234,561 $ 177,577 $ 203,392 $ 221,993 $ 100,447 $ 937,970 |
Schedule of gross loans held for investment by loan types and risk category | The following tables summarize gross loans held for investment by loan types and risk category at the dates indicated: June 30, 2022 Commercial Other Commercial (In Thousands) Single-family Multi-family Real Estate Construction Mortgage Business Consumer Total Pass $ 376,502 $ 464,676 $ 90,429 $ 3,216 $ 123 $ 1,206 $ 86 $ 936,238 Special Mention 224 — — — — — — 224 Substandard 1,508 — — — — — — 1,508 Total loans held for investment, gross $ 378,234 $ 464,676 $ 90,429 $ 3,216 $ 123 $ 1,206 $ 86 $ 937,970 June 30, 2021 Commercial Other Commercial (In Thousands) Single-family Multi-family Real Estate Construction Mortgage Business Consumer Total Pass $ 258,217 $ 483,289 $ 95,279 $ 3,040 $ 139 $ 849 $ 95 $ 840,908 Special Mention 1,767 — — — — — — 1,767 Substandard 8,288 1,119 — — — — — 9,407 Total loans held for investment, gross $ 268,272 $ 484,408 $ 95,279 $ 3,040 $ 139 $ 849 $ 95 $ 852,082 |
Schedule of allowance for loan losses and recorded investment | The following tables summarize the Corporation’s allowance for loan losses and recorded investment in gross loans, by portfolio type, at the dates and for the years indicated. Year Ended June 30, 2022 Commercial Commercial (In Thousands) Single-family Multi-family Real Estate Construction Other Mortgage Business Consumer Total Allowance at beginning of period $ 2,000 $ 4,485 $ 1,006 $ 51 $ 3 $ 36 $ 6 $ 7,587 (Recovery) provision for loan losses (1,056) (1,203) (190) (28) — 16 (1) (2,462) Recoveries 439 — — — — — — 439 Charge-offs — — — — — — — — Allowance for loan losses, end of period $ 1,383 $ 3,282 $ 816 $ 23 $ 3 $ 52 $ 5 $ 5,564 Allowance: Individually evaluated for allowances $ 38 $ — $ — $ — $ — $ — $ — $ 38 Collectively evaluated for allowances 1,345 3,282 816 23 3 52 5 5,526 Allowance for loan losses, end of period $ 1,383 $ 3,282 $ 816 $ 23 $ 3 $ 52 $ 5 $ 5,564 Gross Loans: Individually evaluated for allowances $ 1,275 $ — $ — $ — $ — $ — $ — $ 1,275 Collectively evaluated for allowances 376,959 464,676 90,429 3,216 123 1,206 86 936,695 Total loans held for investment, gross $ 378,234 $ 464,676 $ 90,429 $ 3,216 $ 123 $ 1,206 $ 86 $ 937,970 Allowance for loan losses as a percentage of gross loans held for investment 0.37 % 0.71 % 0.90 % 0.72 % 2.44 % 4.31 % 5.81 % 0.59 % Net (recoveries) charge-offs to average loans receivable, net during the period (0.15) % — % — % — % — % — % — % (0.05) % Year Ended June 30, 2021 Commercial Commercial (In Thousands) Single-family Multi-family Real Estate Construction Other Mortgage Business Consumer Total Allowance at beginning of period $ 2,622 $ 4,329 $ 1,110 $ 171 $ 3 $ 24 $ 6 $ 8,265 (Recovery) provision for loan losses (653) 156 (104) (120) — 12 1 (708) Recoveries 31 — — — — — 1 32 Charge-offs — — — — — — (2) (2) Allowance for loan losses, end of period $ 2,000 $ 4,485 $ 1,006 $ 51 $ 3 $ 36 $ 6 $ 7,587 Allowance: Individually evaluated for allowances $ 384 $ — $ — $ — $ — $ — $ — $ 384 Collectively evaluated for allowances 1,616 4,485 1,006 51 3 36 6 7,203 Allowance for loan losses, end of period $ 2,000 $ 4,485 $ 1,006 $ 51 $ 3 $ 36 $ 6 $ 7,587 Gross Loans: Individually evaluated for allowances $ 8,039 $ — $ — $ — $ — $ — $ — $ 8,039 Collectively evaluated for allowances 260,233 484,408 95,279 3,040 139 849 95 844,043 Total loans held for investment, gross $ 268,272 $ 484,408 $ 95,279 $ 3,040 $ 139 $ 849 $ 95 $ 852,082 Allowance for loan losses as a percentage of gross loans held for investment 0.75 % 0.93 % 1.06 % 1.68 % 2.16 % 4.24 % 6.32 % 0.88 % Net (recoveries) charge-offs to average loans receivable, net during the period (0.01) % — % — % — % — % — % 1.22 % (0.00) % |
Schedule of allowance for loan losses | The following summarizes the components of the net change in the allowance for loan losses for the years indicated: Year Ended June 30, (In Thousands) 2022 2021 Balance, beginning of year $ 7,587 $ 8,265 Recovery from the allowance for loan losses (2,462) (708) Recoveries 439 32 Charge-offs — (2) Balance, end of year $ 5,564 $ 7,587 |
Schedule of recorded investment in non-performing loans | At or For the Year Ended June 30, 2022 Unpaid Net Average Interest Principal Related Recorded Recorded Recorded Income (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Investment Recognized Mortgage loans: Single-family: With a related allowance $ 993 $ — $ 993 $ (85) $ 908 $ 2,594 $ 98 Without a related allowance (2) 548 (33) 515 — 515 635 232 Total single-family loans 1,541 (33) 1,508 (85) 1,423 3,229 330 Multi-family: With a related allowance — — — — — 957 46 Total multi-family loans — — — — — 957 46 Total non-performing loans $ 1,541 $ (33) $ 1,508 $ (85) $ 1,423 $ 4,186 $ 376 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because these loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. At or For the Year Ended June 30, 2021 Unpaid Related Net Average Interest Principal Charge-offs Recorded Recorded Recorded Income (In Thousands) Balance Related Investment Allowance (1) Investment Investment Recognized Mortgage loans: Single-family: With a related allowance $ 7,400 $ — $ 7,400 $ (434) $ 6,966 $ 7,187 $ 140 Without a related allowance (2) 1,335 (436) 899 — 899 1,516 — Total single-family loans 8,735 (436) 8,299 (434) 7,865 8,703 140 Multi-family: With a related allowance 1,119 — 1,119 (338) 781 374 15 Total mutlti-family loans 1,119 — 1,119 (338) 781 374 15 Commercial business loans: With a related allowance — — — — — 13 1 Total commercial business loans — — — — — 13 1 Total non-performing loans $ 9,854 $ (436) $ 9,418 $ (772) $ 8,646 $ 9,090 $ 156 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because these loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. |
Schedule of loan forbearance related to COVID-19 hardship requests | As of June 30, 2022, loan forbearance related to COVID-19 hardship requests are described below: Forbearance Granted Forbearance Completed (1) Forbearance Remaining Number of Number of Number of (Dollars In Thousands) Loans Amount Loans Amount Loans Amount Single-family loans 59 $ 22,980 59 $ 22,980 — $ — Multi-family loans 5 2,268 5 2,268 — — Commercial real estate loans 3 1,954 3 1,954 — — Total loan forbearance 67 $ 27,202 67 $ 27,202 — $ — (1) Includes 19 single-family loans totaling $6.9 million where forbearance was subsequently extended and were classified as restructured non-performing loans, consistent with the Interagency Statement. As of June 30, 2022, five loans totaling $2.2 million were paid off and 13 loans totaling $3.9 million were upgraded to the pass category, while one loan totaling $760,000 remained as non-performing. |
Schedule of past due status of gross loans held for investment, net of fair value adjustments | The following tables provide information on the past due status of the Corporation’s loans held for investment, gross, at the dates indicated. June 30, 2022 30-89 Days Past Total Loans Held for (In Thousands) Current Due Non-Accrual (1) Investment, Gross Mortgage loans: Single-family $ 376,726 $ — $ 1,508 $ 378,234 Multi-family 464,676 — — 464,676 Commercial real estate 90,429 — — 90,429 Construction 3,216 — — 3,216 Other 123 — — 123 Commercial business loans 1,206 — — 1,206 Consumer loans 83 3 — 86 Total loans held for investment, gross $ 936,459 $ 3 $ 1,508 $ 937,970 (1) All loans 90 days or greater past due are placed on non-accrual status. June 30, 2021 30-89 Days Past Total Loans Held for (In Thousands) Current Due Non-Accrual (1) Investment, Gross Mortgage loans: Single-family $ 259,984 $ — $ 8,288 $ 268,272 Multi-family 483,289 — 1,119 484,408 Commercial real estate 95,279 — — 95,279 Construction 3,040 — — 3,040 Other 139 — — 139 Commercial business loans 849 — — 849 Consumer loans 88 7 — 95 Total loans held for investment, gross $ 842,668 $ 7 $ 9,407 $ 852,082 (1) All loans 90 days or greater past due are placed on non-accrual status. |
Schedule of troubled debt restructurings by nonaccrual versus accrual status | The following table summarizes at the dates indicated the restructured loan balances, net of allowance for loan losses or charge-offs, by loan type and non-accrual versus accrual status at June 30, 2022 and 2021 : At June 30, (In Thousands) 2022 2021 Restructured loans on non-accrual status: Mortgage loans: Single-family $ 722 $ 6,983 Total 722 6,983 Restructured loans on accrual status: Mortgage loans: Single-family 3,748 876 Total 3,748 876 Total restructured loans $ 4,470 $ 7,859 |
Schedule of recorded investment in restructured loans | The following tables show the restructured loans by type, net of allowance for loan losses or charge-offs, at June 30, 2022 and 2021: At June 30, 2022 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 760 $ — $ 760 $ (38) $ 722 Without a related allowance (2) 3,748 — 3,748 — 3,748 Total single-family 4,508 — 4,508 (38) 4,470 Total restructured loans $ 4,508 $ — $ 4,508 $ (38) $ 4,470 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because these loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. At June 30, 2021 Unpaid Net Principal Related Recorded Recorded (In Thousands) Balance Charge-offs Investment Allowance (1) Investment Mortgage loans: Single-family: With a related allowance $ 7,151 $ — $ 7,151 $ (384) $ 6,767 Without a related allowance (2) 1,457 (365) 1,092 — 1,092 Total single-family 8,608 (365) 8,243 (384) 7,859 Total restructured loans $ 8,608 $ (365) $ 8,243 $ (384) $ 7,859 (1) Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan. (2) There was no related allowance for loan losses because these loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance. |
Summary of Related Party Loan Activity | Year Ended June 30, (In Thousands) 2022 2021 Balance, beginning of year $ — $ 1 Sales and payments — (1) Balance, end of year $ — $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Leases | |
Schedule of supplemental information related to operating leases | As of (In Thousands) June 30, 2022 June 30, 2021 Consolidated Statements of Condition: Premises and equipment - Operating lease right of use assets $ 1,969 $ 2,117 Accounts payable, accrued interest and other liabilities – Operating lease liabilities $ 1,998 $ 2,192 Year Ended June 30, 2022 2021 Consolidated Statements of Operations: Premises and occupancy expenses from operating leases (1) $ 788 $ 797 Equipment expenses from operating leases $ 92 $ 69 Consolidated Statements of Cash Flows: Operating cash flows from operating leases, net $ 921 $ 905 (1) Includes immaterial variable lease costs. |
Schedule of remaining minimum contractual lease payments and other information associated with leases | The following table provides information related to remaining minimum contractual lease payments and other information associated with the Corporation’s leases as of June 30, 2022: Amount (1) Year Ending June 30, (In Thousands) 2023 $ 832 2024 555 2025 400 2026 236 2027 39 Thereafter — Total contract lease payments $ 2,062 Total liability to make lease payments $ 1,998 Difference in undiscounted and discounted future lease payments $ 64 Weighted average discount rate 1.97 % Weighted average remaining lease term (years) 3.1 (1) Contractual base rents do not include property taxes and other operating expenses due under respective lease agreements. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Premises and Equipment | |
Schedule of premises and equipment | Premises and equipment at June 30, 2022 and 2021 consisted of the following: June 30, (In Thousands) 2022 2021 Land $ 2,853 $ 2,853 Buildings 9,896 9,772 Leasehold improvements 2,996 3,033 Furniture and equipment 5,427 5,416 Automobiles 167 164 Operating lease – right of use assets (1) 1,969 2,117 23,308 23,355 Less accumulated depreciation and amortization (14,482) (13,978) Total premises and equipment, net $ 8,826 $ 9,377 (1) Net of accumulated amortization. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Deposits | |
Schedule of deposits | Deposits at June 30, 2022 and 2021 consisted of the following: June 30, 2022 June 30, 2021 (Dollars in Thousands) Interest Rate Amount Interest Rate Amount Checking deposits – non interest-bearing — $ 125,089 — $ 123,179 Checking deposits – interest-bearing (1) 0.00% - 0.20% 335,788 0.00% - 0.20% 327,388 Savings deposits (1) 0.00% - 0.70% 333,581 0.00% - 0.70% 307,299 Money market deposits (1) 0.00% - 2.00% 39,897 0.00% - 2.00% 39,670 Time deposits: (1) Under $100 0.00% - 2.13% 60,721 0.00% - 2.13% 71,026 $100 and over 0.05% - 2.13% 60,428 0.05% - 2.13% 69,411 Total deposits $ 955,504 $ 937,973 Weighted-average interest rate on deposits 0.11 % 0.15 % (1) Certain interest-bearing checking, savings, money market and time deposits require a minimum balance to earn interest. |
Schedule of aggregate annual maturities of time deposits | The aggregate annual maturities of time deposits at June 30, 2022 and 2021 were as follows: June 30, (In Thousands) 2022 2021 One year or less $ 78,644 $ 76,705 Over one to two years 20,600 37,687 Over two to three years 13,890 11,230 Over three to four years 3,552 11,923 Over four to five years 3,186 2,493 Over five years 1,277 399 Total time deposits $ 121,149 $ 140,437 |
Schedule of interest expense on deposits | Year Ended June 30, (In Thousands) 2022 2021 Checking deposits – interest-bearing $ 149 $ 188 Savings deposits 172 208 Money market deposits 71 80 Time deposits 752 1,269 Total interest expense on deposits $ 1,144 $ 1,745 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Borrowings | |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank | June 30, (In Thousands) 2022 2021 FHLB - San Francisco advances $ 85,000 $ 100,983 |
Summary of Federal Home Loan Bank, Advances | At or For the Year Ended June 30, (Dollars in Thousands) 2022 2021 Balance outstanding at the end of year: FHLB - San Francisco advances $ 85,000 $ 100,983 Weighted-average rate at the end of year: FHLB - San Francisco advances 2.20 % 2.19 % Maximum amount of borrowings outstanding at any month end: FHLB - San Francisco advances $ 100,978 $ 141,042 Average short-term borrowings during the year with respect to: (1) FHLB - San Francisco advances $ 25,513 $ 35,631 Weighted-average short-term borrowing rate during the year with respect to: (1) FHLB - San Francisco advances 1.87 % 2.14 % (1) Borrowings with a remaining term of 12 months or less. |
Schedule of Federal Home Loan Bank, Advances, Annual Contractual Maturities | June 30, (Dollars in Thousands) 2022 2021 Within one year $ 35,000 $ 20,983 Over one to two years 30,000 30,000 Over two to three years 20,000 30,000 Over three to four years — 20,000 Over four to five years — — Over five years — — Total borrowings $ 85,000 $ 100,983 Weighted average interest rate 2.20 % 2.19 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Taxes | |
Schedule of Provision for Income Taxes | Year Ended June 30, (In Thousands) 2022 2021 Current: Federal $ 1,781 $ 1,547 State 844 598 2,625 2,145 Deferred: Federal 696 303 State 444 178 1,140 481 Provision for income taxes $ 3,765 $ 2,626 |
Schedule of estimated combined federal and state statutory tax rates | The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to net income before income taxes as a result of the following differences for the years indicated: Year Ended June 30, 2022 2021 (In Thousands) Amount Tax Rate Amount Tax Rate Federal income tax at statutory rate $ 2,700 21.00 % $ 2,139 21.00 % State income tax, net of federal income tax benefit 988 7.68 % 614 6.05 % Changes in taxes resulting from: Bank-owned life insurance (39) (0.31) % (40) (0.39) % Non-deductible expenses 8 0.06 % 6 0.06 % Non-deductible stock-based compensation — — % (30) (0.30) % Excess tax benefit on stock-based compensation — — % (64) — % Return to provision adjustment 107 0.84 % — — % Other 1 0.01 % 1 (0.64) % Effective income tax $ 3,765 29.28 % $ 2,626 25.78 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets at June 30, 2022 and 2021 by jurisdiction were as follows: June 30, (In Thousands) 2022 2021 Deferred taxes - federal $ 947 $ 1,617 Deferred taxes - state 485 926 Total net deferred tax assets $ 1,432 $ 2,543 Net deferred tax assets at June 30, 2022 and 2021 were comprised of the following: June 30, (In Thousands) 2022 2021 Loss reserves $ 1,968 $ 2,734 Non-accrued interest 199 392 Deferred compensation 2,903 2,512 Accrued vacation 178 197 Depreciation 211 153 State tax 64 — Other 245 307 Total deferred tax assets 5,768 6,295 FHLB - San Francisco stock dividends (645) (645) Prepaid expenses (28) (41) Unrealized loss (gain) on investment securities 1 (27) Unrealized gain on interest-only strips (2) (3) Deferred loan costs (3,662) (2,974) State tax — (62) Total deferred tax liabilities (4,336) (3,752) Net deferred tax assets $ 1,432 $ 2,543 |
Capital (Tables)
Capital (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Capital | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Regulatory Requirements Minimum for Capital Minimum to Be Actual Adequacy Purposes (1) Well Capitalized Amount Ratio Amount Ratio Amount Ratio Provident Savings Bank, F.S.B.: As of June 30, 2022 Tier 1 leverage capital (to adjusted average assets) $ 124,871 10.47 % $ 47,699 4.00 % $ 59,624 5.00 % CET1 capital (to risk-weighted assets) $ 124,871 19.58 % $ 44,653 7.00 % $ 41,463 6.50 % Tier 1 capital (to risk-weighted assets) $ 124,871 19.58 % $ 54,221 8.50 % $ 51,032 8.00 % Total capital (to risk-weighted assets) $ 130,565 20.47 % $ 66,979 10.50 % $ 63,790 10.00 % As of June 30, 2021 Tier 1 leverage capital (to adjusted average assets) $ 121,621 10.19 % $ 47,736 4.00 % $ 59,670 5.00 % CET1 capital (to risk-weighted assets) $ 121,621 18.58 % $ 45,816 7.00 % $ 42,544 6.50 % Tier 1 capital (to risk-weighted assets) $ 121,621 18.58 % $ 55,634 8.50 % $ 52,361 8.00 % Total capital (to risk-weighted assets) $ 129,335 19.76 % $ 68,724 10.50 % $ 65,452 10.00 % (1) Inclusive of the conservation buffer of 2.50% for CET1 capital, Tier 1 capital and Total capital ratios. |
Incentive Plans (Tables)
Incentive Plans (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Unvested Restricted Stock Units Award Activity | The following table summarizes the restricted stock activity for the years ended June 30, 2022 and 2021: Weighted-Average Award Date Unvested Shares Shares Fair Value Unvested at June 30, 2020 225,500 $ 18.55 Awarded — $ — Vested (112,750) $ 18.53 Forfeited (11,500) $ 18.57 Unvested at June 30, 2021 101,250 $ 18.57 Expected to vest at June 30, 2021 81,000 $ 18.57 Unvested at June 30, 2021 101,250 $ 18.57 Awarded 1,000 $ 16.70 Vested (1,000) $ 16.70 Forfeited (6,500) $ 18.57 Unvested at June 30, 2022 94,750 $ 18.57 Expected to vest at June 30, 2022 75,800 $ 18.57 |
Equity Incentive Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock option activity | The following tables summarize the stock option activity in the Plans during the years ended June 30, 2022 and 2021: Weighted- Weighted- Average Aggregate Average Remaining Intrinsic Exercise Contractual Value Options Shares Price Term (Years) ($000) Outstanding at June 30, 2020 554,500 $ 14.07 Granted — $ — Exercised (132,000) $ 7.43 Forfeited (5,500) $ 10.68 Outstanding at June 30, 2021 417,000 $ 16.22 4.28 $ 760 Vested and expected to vest at June 30, 2021 408,000 $ 16.13 4.20 $ 760 Exercisable at June 30, 2021 372,000 $ 15.74 3.84 $ 760 Outstanding at June 30, 2021 417,000 $ 16.22 Granted 17,000 $ 16.70 Exercised — $ — Forfeited — $ — Expired (3,000) $ 16.70 Outstanding at June 30, 2022 431,000 $ 16.24 3.48 $ 63 Vested and expected to vest at June 30, 2022 419,200 $ 16.15 3.36 $ 63 Exercisable at June 30, 2022 372,000 $ 15.74 2.84 $ 63 |
Stock Option Plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Fiscal 2022 Fiscal 2021 Expected volatility 20.3 % — % Weighted-average volatility 20.3 % — % Expected dividend yield 3.4 % — % Expected term (in years) 7.4 — Risk-free interest rate 1.4 % — % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share | |
Schedule of earnings per share, basic and diluted | For the Year Ended June 30, 2022 Income Shares Per-Share (Dollars in Thousands, Except Share Amount) (Numerator) (Denominator) Amount Basic EPS $ 9,093 7,404,089 $ 1.23 Effect of dilutive shares: Stock options 29,614 Restricted stock 15,301 Diluted EPS $ 9,093 7,449,004 $ 1.22 For the Year Ended June 30, 2021 Income Shares Per-Share (Dollars in Thousands, Except Share Amount) (Numerator) (Denominator) Amount Basic EPS $ 7,561 7,464,814 $ 1.01 Effect of dilutive shares: Stock options 49,917 Restricted stock 23,678 Diluted EPS $ 7,561 7,538,409 $ 1.00 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies. | |
Schedule of the Corporation's lease and operating commitments | Amount Year Ending June 30, (In Thousands) 2023 $ 1,192 2024 589 2025 435 2026 250 2027 41 Thereafter — Total minimum payments required $ 2,507 |
Derivative and Other Financia_2
Derivative and Other Financial Instruments with Off-Balance Sheet Risks (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Derivative and Other Financial Instruments with Off-Balance Sheet Risks | |
Schedule of undisbursed funds commitments | June 30, Commitments 2022 2021 (In Thousands) Undisbursed loan funds – Construction loans $ 3,384 $ 4,479 Undisbursed lines of credit – Commercial business loans 541 460 Undisbursed lines of credit – Consumer loans 390 425 Commitments to extend credit on loans to be held for investment 43,386 21,887 Total $ 47,701 $ 27,251 |
Schedule of allowance for loan losses of undisbursed funds and commitments on loans held for investment | Year Ended June 30, (In Thousands) 2022 2021 Balance, beginning of the year $ 127 $ 126 Provision 3 1 Balance, end of the year $ 130 $ 127 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Fair Value of Financial Instruments | |
Schedule of aggregate fair value and aggregate unpaid principal balance of loans held for sale | Aggregate Unpaid Net Aggregate Principal Unrealized (In Thousands) Fair Value Balance Loss As of June 30, 2022: Loans held for investment, at fair value $ 1,396 $ 1,569 $ (173) As of June 30, 2021: Loans held for investment, at fair value $ 1,874 $ 1,934 $ (60) |
Schedule of fair value, assets and liabilities measured on recurring basis | Fair Value Measurement at June 30, 2022 Using: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities - available for sale: U.S. government agency MBS $ — $ 1,698 $ — $ 1,698 U.S. government sponsored enterprise MBS — 865 — 865 Private issue CMO — — 113 113 Investment securities - available for sale — 2,563 113 2,676 Loans held for investment, at fair value — — 1,396 1,396 Interest-only strips — — 7 7 Total assets $ — $ 2,563 $ 1,516 $ 4,079 Liabilities: $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — Fair Value Measurement at June 30, 2021 Using: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities - available for sale: U.S. government agency MBS $ — $ 2,222 $ — $ 2,222 U.S. government sponsored enterprise MBS — 1,211 — 1,211 Private issue CMO — — 154 154 Investment securities - available for sale — 3,433 154 3,587 Loans held for investment, at fair value — — 1,874 1,874 Interest-only strips — — 10 10 Total assets $ — $ 3,433 $ 2,038 $ 5,471 Liabilities: $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — |
Schedule for reconciliation of recurring fair value measurements using level 3 inputs | The following is a reconciliation of the beginning and ending balances during the periods shown of recurring fair value measurements recognized in the Consolidated Statements of Financial Condition using Level 3 inputs: Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) Private Loans Held For Interest- Issue Investment, at Only (In Thousands) CMO fair value (1) Strips Total Beginning balance at June 30, 2021 $ 154 $ 1,874 $ 10 $ 2,038 Total gains or losses (realized/unrealized): Included in earnings — (113) — (113) Included in other comprehensive income (loss) (7) — (3) (10) Purchases — — — — Issuances — — — — Settlements (34) (365) — (399) Transfers in and/or out of Level 3 — — — — Ending balance at June 30, 2022 $ 113 $ 1,396 $ 7 $ 1,516 (1) The valuation of loans held for investment at fair value includes management’s estimate of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for interest rate characteristics. Fair Value Measurement Using Significant Other Unobservable Inputs (Level 3) Private Loans Held For Interest- Issue Investment, at Only (In Thousands) CMO fair value (1) Strips Total Beginning balance at June 30, 2020 $ 197 $ 2,258 $ 14 $ 2,469 Total gains or losses (realized/ unrealized): Included in earnings — 51 — 51 Included in other comprehensive income (loss) 9 — (4) 5 Purchases — — — — Issuances — — — — Settlements (52) (435) — (487) Transfers in and/or out of Level 3 — — — — Ending balance at June 30, 2021 $ 154 $ 1,874 $ 10 $ 2,038 (1) The valuation of loans held for investment at fair value includes management’s estimate of the specific credit risk attributes of each loan, in addition to the quoted secondary-market prices which account for interest rate characteristics. |
Schedule of fair value assets measured on nonrecurring basis | The following fair value hierarchy table presents information about the Corporation’s assets measured at fair value at the dates indicated on a nonrecurring basis: Fair Value Measurement at June 30, 2022 Using: (In Thousands) Level 1 Level 2 Level 3 Total Non-performing loans $ — $ 515 $ 908 $ 1,423 Mortgage servicing assets — — 168 168 Total $ — $ 515 $ 1,076 $ 1,591 Fair Value Measurement at June 30, 2021 Using: (In Thousands) Level 1 Level 2 Level 3 Total Non-performing loans $ — $ 899 $ 7,747 $ 8,646 Mortgage servicing assets — — 208 208 Total $ — $ 899 $ 7,955 $ 8,854 |
Schedule of additional information about valuation techniques and inputs used for assets and liabilities | The following table presents additional information about valuation techniques and inputs used for assets and liabilities, including derivative financial instruments, which are measured at fair value and categorized within Level 3 as of June 30, 2022: Impact to Fair Value Valuation As of from an June 30, Valuation Range (1) Increase in (Dollars In Thousands) 2022 Techniques Unobservable Inputs (Weighted Average) Inputs (2) Assets: Securities available-for sale: Private issue CMO $ 113 Market comparable pricing Comparability adjustment 0.96% Increase Loans held for investment, at fair value $ 1,396 Relative value analysis Broker quotes 91.1% - 98.0% (93.4% ) of par Increase Credit risk factor 1.2% - 100.0% (4.6%) Decrease Non-performing loans (3) $ 722 Discounted cash flow Default rates 5.0% Decrease Non-performing loans (4) $ 186 Relative value analysis Credit risk factor 20.0% Decrease Mortgage servicing assets $ 168 Discounted cash flow Prepayment rate (CPR) 4.8% - 60.0% (10.9%) Decrease Discount rate 9.0% - 10.5% (9.0%) Decrease Interest-only strips $ 7 Discounted cash flow Prepayment rate (CPR) 9.5% - 32.0% (30.6%) Decrease Discount rate 9.0% Decrease Liabilities: None (1) The range is based on the historical estimated fair values and management estimates. (2) Unless otherwise noted, this column represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements. (3) Consist of restructured loans. (4) Consist of other non-performing loans, excluding restructured loans. |
Schedule of carrying amount and fair value of financial instruments | The carrying amount and fair value of the Corporation’s other financial instruments as of June 30, 2022 and 2021 were as follows: June 30, 2022 Carrying Fair (In Thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Loans held for investment, not recorded at fair value $ 938,596 $ 892,339 $ — $ — $ 892,339 Investment securities - held to maturity $ 185,745 $ 171,724 $ — $ 171,724 $ — FHLB – San Francisco stock $ 8,239 $ 8,239 $ — $ 8,239 $ — Financial liabilities: Deposits $ 955,504 $ 917,220 $ — $ — $ 917,220 Borrowings $ 85,000 $ 84,299 $ — $ — $ 84,299 June 30, 2021 Carrying Fair (In Thousands) Amount Value Level 1 Level 2 Level 3 Financial assets: Loans held for investment, not recorded at fair value $ 849,086 $ 848,727 $ — $ — $ 848,727 Investment securities - held to maturity $ 223,306 $ 224,721 $ — $ 224,721 $ — FHLB – San Francisco stock $ 8,155 $ 8,155 $ — $ 8,155 $ — Financial liabilities: Deposits $ 937,973 $ 904,673 $ — $ — $ 904,673 Borrowings $ 100,983 $ 104,526 $ — $ — $ 104,526 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Revenue From Contracts With Customers | |
Schedule of non-interest income disaggregated by type of service | Year Ended June 30, Type of Services 2022 2021 (In Thousands) Loan servicing and other fees (1) $ 1,056 $ 1,170 Deposit account fees 1,302 1,247 Card and processing fees 1,639 1,605 Other (2) 719 551 Total non-interest income $ 4,716 $ 4,573 (1) Not in scope of ASC 606. (2) Includes BOLI of $188 thousand and $191 thousand and net gain on sale of loans of $40 thousand and net loss on sale of loans of $103 thousand for the years ended June 30, 2022 and 2021, respectively, which are not in scope of ASC 606. |
Holding Company Condensed Fin_2
Holding Company Condensed Financial Information (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Holding Company Condensed Financial Information | |
Schedule of condensed statements of financial condition | June 30, (In Thousands) 2022 2021 Assets Cash and cash equivalents $ 3,751 $ 5,576 Investment in subsidiary 124,875 121,696 Other assets 61 60 $ 128,687 $ 127,332 Liabilities and Stockholders’ Equity Other liabilities $ 37 $ 52 Stockholders’ equity 128,650 127,280 $ 128,687 $ 127,332 |
Schedule of condensed statements of operations | Year Ended June 30, (In Thousands) 2022 2021 Dividend from the Bank $ 7,500 $ 5,000 Interest and other income 3 5 Total income 7,503 5,005 General and administrative expenses 1,219 1,117 Earnings before income taxes and equity in undistributed earnings of the Bank 6,284 3,888 Income tax benefit (358) (328) Earnings before equity in undistributed earnings of the Bank 6,642 4,216 Equity in undistributed earnings of the Bank 2,451 3,345 Net income $ 9,093 $ 7,561 |
Schedule of condensed statements of cash flows | Year Ended June 30, (In Thousands) 2022 2021 Cash flow from operating activities: Net income $ 9,093 $ 7,561 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of the Bank (2,451) (3,345) (Increase) decrease in other assets (1) 48 Decrease in other liabilities (15) (2) Net cash provided by operating activities 6,626 4,262 Cash flow from financing activities: Exercise of stock options — 981 Treasury stock purchases (4,305) (2,336) Cash dividends (4,146) (4,173) Net cash used for financing activities (8,451) (5,528) Net decrease in cash during the year (1,825) (1,266) Cash and cash equivalents at beginning of year 5,576 6,842 Cash and cash equivalents at end of year $ 3,751 $ 5,576 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Basis of Presentation (Details) | 12 Months Ended |
Jun. 30, 2022 location segment | |
Organization and Summary of Significant Accounting Policies | |
Number of operating segments | segment | 1 |
Number of banking locations | location | 13 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Loans in forbearance (Details) | Jun. 30, 2022 loan |
Organization and Summary of Significant Accounting Policies | |
Number of forbearance loans | 0 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Troubled Debt Restructuring (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Organization and Summary of Significant Accounting Policies | |
Period of satisfactory contractual payments to remove restructured loan status | 6 months |
Period Of Satisfactory Contractual Payments To Remove Restructured Loan Status on Multiple Restructures | 12 months |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Premises and Equipment (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Buildings | Minimum | |
Premises and Equipment | |
Property, Plant and Equipment, Useful Life | 10 years |
Buildings | Maximum | |
Premises and Equipment | |
Property, Plant and Equipment, Useful Life | 40 years |
Furniture and Fixtures [Member] | Minimum | |
Premises and Equipment | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and Fixtures [Member] | Maximum | |
Premises and Equipment | |
Property, Plant and Equipment, Useful Life | 10 years |
Automobiles | Minimum | |
Premises and Equipment | |
Property, Plant and Equipment, Useful Life | 3 years |
Automobiles | Maximum | |
Premises and Equipment | |
Property, Plant and Equipment, Useful Life | 5 years |
Computer Equipment [Member] | Minimum | |
Premises and Equipment | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer Equipment [Member] | Maximum | |
Premises and Equipment | |
Property, Plant and Equipment, Useful Life | 5 years |
Leasehold improvements | Minimum | |
Premises and Equipment | |
Property, Plant and Equipment, Useful Life | 1 year |
Leasehold improvements | Maximum | |
Premises and Equipment | |
Property, Plant and Equipment, Useful Life | 10 years |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Organization and Summary of Significant Accounting Policies | ||
Estimated deferred tax asset | $ 1,432 | $ 2,543 |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies - Stock Repurchases (Details) - Common Stock | 12 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Class of Stock | |
Purchase of common stock shares | shares | 257,285 |
Shares repurchased weighted average cost per share | $ / shares | $ 16.73 |
Stock repurchase authorized amount | $ | $ 364,259 |
Organization and Summary of _10
Organization and Summary of Significant Accounting Policies - Stock-based Compensation (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Organization and Summary of Significant Accounting Policies | ||
Compensation cost | $ 798,000 | $ 1,300,000 |
Organization and Summary of _11
Organization and Summary of Significant Accounting Policies - Restricted Stock (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Organization and Summary of Significant Accounting Policies | ||
Restricted stock expense | $ 747,000 | $ 1,200,000 |
Organization and Summary of _12
Organization and Summary of Significant Accounting Policies - Post Retirement Benefits (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Organization and Summary of Significant Accounting Policies | ||
Accrued liability, post retirement benefits | $ 174,000 | $ 125,000 |
Investment Securities - Schedul
Investment Securities - Schedule of amortized cost and estimated fair value of Held to maturity investments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Held to maturity | ||
Amortized Cost | $ 185,745 | $ 223,306 |
Gross Unrealized Gains | 74 | 2,225 |
Gross Unrealized (Losses) | (14,095) | (810) |
Estimated Fair Value | 171,724 | 224,721 |
Carrying Value | 185,745 | 223,306 |
U.S. government sponsored enterprise MBS | ||
Held to maturity | ||
Amortized Cost | 180,492 | 220,448 |
Gross Unrealized Gains | 63 | 2,209 |
Gross Unrealized (Losses) | (13,945) | (810) |
Estimated Fair Value | 166,610 | 221,847 |
Carrying Value | 180,492 | 220,448 |
U.S. government sponsored enterprise CMO | ||
Held to maturity | ||
Amortized Cost | 3,913 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized (Losses) | (150) | |
Estimated Fair Value | 3,763 | |
Carrying Value | 3,913 | |
U.S. SBA securities | ||
Held to maturity | ||
Amortized Cost | 940 | 1,858 |
Gross Unrealized Gains | 11 | 16 |
Gross Unrealized (Losses) | 0 | |
Estimated Fair Value | 951 | 1,874 |
Carrying Value | 940 | 1,858 |
Certificate of deposits | ||
Held to maturity | ||
Amortized Cost | 400 | 1,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | 0 | 0 |
Estimated Fair Value | 400 | 1,000 |
Carrying Value | $ 400 | $ 1,000 |
Investment Securities - Sched_2
Investment Securities - Schedule of amortized cost and estimated fair value of Available for sale securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Available for sale | ||
Amortized Cost | $ 2,681 | $ 3,494 |
Gross Unrealized Gains | 10 | 93 |
Gross Unrealized (Losses) | (15) | |
Estimated Fair Value | 2,676 | 3,587 |
U.S. government agency MBS | ||
Available for sale | ||
Amortized Cost | 1,698 | 2,146 |
Gross Unrealized Gains | 6 | 76 |
Gross Unrealized (Losses) | (6) | 0 |
Estimated Fair Value | 1,698 | 2,222 |
U.S. government sponsored enterprise MBS | ||
Available for sale | ||
Amortized Cost | 865 | 1,197 |
Gross Unrealized Gains | 4 | 14 |
Gross Unrealized (Losses) | (4) | 0 |
Estimated Fair Value | 865 | 1,211 |
Private issue CMO | ||
Available for sale | ||
Amortized Cost | 118 | 151 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized (Losses) | (5) | 0 |
Estimated Fair Value | $ 113 | $ 154 |
Investment Securities - Total i
Investment Securities - Total investment securities for amortized cost and estimated fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Investment Securities | ||
Amortized Cost | $ 188,426 | $ 226,800 |
Gross Unrealized Gains | 84 | 2,318 |
Gross Unrealized (Losses) | (14,110) | (810) |
Estimated Fair Value | 174,400 | 228,308 |
Carrying Value | $ 188,421 | $ 226,893 |
Investment Securities - Investm
Investment Securities - Investments with Unrealized Loss Positions for Held to maturity (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Unrealized Holding Losses Less Than 12 Months, Fair Value | $ 125,608,000 | $ 84,600,000 |
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 9,168,000 | 810,000 |
Unrealized Holding Losses 12 Months or More, Fair Value | 35,528,000 | 0 |
Unrealized Holding Losses 12 Months or More, Unrealized Losses | 4,927,000 | 0 |
Unrealized Holding Losses Total, Fair Value | 161,136,000 | 84,600,000 |
Unrealized Holding Losses Total, Unrealized Losses | 14,095,000 | 810,000 |
U.S. government sponsored enterprise MBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Unrealized Holding Losses Less Than 12 Months, Fair Value | 121,844,000 | 84,600,000 |
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 9,018,000 | 810,000 |
Unrealized Holding Losses 12 Months or More, Fair Value | 35,528,000 | 0 |
Unrealized Holding Losses 12 Months or More, Unrealized Losses | 4,927,000 | 0 |
Unrealized Holding Losses Total, Fair Value | 157,372,000 | 84,600,000 |
Unrealized Holding Losses Total, Unrealized Losses | 13,945,000 | $ 810,000 |
U.S. government sponsored enterprise CMO | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Unrealized Holding Losses Less Than 12 Months, Fair Value | 3,764,000 | |
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 150,000 | |
Unrealized Holding Losses 12 Months or More, Fair Value | 0 | |
Unrealized Holding Losses 12 Months or More, Unrealized Losses | 0 | |
Unrealized Holding Losses Total, Fair Value | 3,764,000 | |
Unrealized Holding Losses Total, Unrealized Losses | $ 150,000 |
Investment Securities - Inves_2
Investment Securities - Investments with Unrealized Loss Positions for Available for sale (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Holding Losses, Less Than 12 Months, Fair Value | 1,610 |
Unrealized Holding Losses, Less Than 12 Months, Unrealized Losses | $ 15 |
Unrealized Holding Losses, 12 Months or More, Fair Value | 0 |
Unrealized Holding Losses, 12 Months or More, Unrealized Losses | 0 |
Unrealized Holding Losses Total, Fair Value | 1,610 |
Unrealized Holding Losses Total, Unrealized Losses | $ 15 |
U.S. government agency MBS | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Holding Losses, Less Than 12 Months, Fair Value | 826 |
Unrealized Holding Losses, Less Than 12 Months, Unrealized Losses | $ 6 |
Unrealized Holding Losses, 12 Months or More, Fair Value | 0 |
Unrealized Holding Losses, 12 Months or More, Unrealized Losses | 0 |
Unrealized Holding Losses Total, Fair Value | 826 |
Unrealized Holding Losses Total, Unrealized Losses | $ 6 |
U.S. government sponsored enterprise MBS | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Holding Losses, Less Than 12 Months, Fair Value | 671 |
Unrealized Holding Losses, Less Than 12 Months, Unrealized Losses | $ 4 |
Unrealized Holding Losses, 12 Months or More, Fair Value | 0 |
Unrealized Holding Losses, 12 Months or More, Unrealized Losses | 0 |
Unrealized Holding Losses Total, Fair Value | 671 |
Unrealized Holding Losses Total, Unrealized Losses | $ 4 |
Private issue CMO | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Holding Losses, Less Than 12 Months, Fair Value | 113 |
Unrealized Holding Losses, Less Than 12 Months, Unrealized Losses | $ 5 |
Unrealized Holding Losses, 12 Months or More, Fair Value | 0 |
Unrealized Holding Losses, 12 Months or More, Unrealized Losses | 0 |
Unrealized Holding Losses Total, Fair Value | 113 |
Unrealized Holding Losses Total, Unrealized Losses | $ 5 |
Investment Securities - Inves_3
Investment Securities - Investments with Unrealized Loss Positions for total investment securities (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Investment Securities | ||
Unrealized Holding Losses Less Than 12 Months, Fair Value | $ 127,218,000 | $ 84,600,000 |
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 9,183,000 | 810,000 |
Unrealized Holding Losses 12 Months or More, Fair Value | 35,528,000 | 0 |
Unrealized Holding Losses 12 Months or More, Unrealized Losses | 4,927,000 | 0 |
Unrealized Holding Losses Total, Fair Value | 162,746,000 | 84,600,000 |
Unrealized Holding Losses Total, Unrealized Losses | $ 14,110,000 | $ 810,000 |
Investment Securities - Sched_3
Investment Securities - Schedule of Held to maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Held to maturity, Amortized Cost | ||
Due in one year or less | $ 1,427 | $ 1,209 |
Due after one through five years | 10,908 | 14,544 |
Due after five through ten years | 77,167 | 90,798 |
Due after ten years | 96,243 | 116,755 |
Total investment securities - held to maturity, Amortized Cost | 185,745 | 223,306 |
Held to maturity, Estimated Fair Value | ||
Due in one year or less | 1,425 | 1,218 |
Due after one through five years | 10,805 | 15,179 |
Due after five through ten years | 72,625 | 91,780 |
Due after ten years | 86,869 | 116,544 |
Total investment securities - held to maturity, Estimated Fair Value | $ 171,724 | $ 224,721 |
Investment Securities - Sched_4
Investment Securities - Schedule of Available for Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Available for sale, Amortized Cost | ||
Due in one year or less | $ 0 | $ 0 |
Due after one through five years | 0 | 0 |
Due after five through ten years | 98 | 0 |
Due after ten years | 2,583 | 3,494 |
Total investment securities - available for sale, Amortized Cost | 2,681 | 3,494 |
Amortized Cost | 188,426 | 226,800 |
Available for sale, Estimated Fair Value | ||
Due in one year or less | 0 | 0 |
Due after one through five years | 0 | |
Due after five through ten years | 98 | 0 |
Due after ten years | 2,578 | 3,587 |
Total investment securities - available for sale, Estimated Fair Value | 2,676 | 3,587 |
Estimated Fair Value | $ 174,400 | $ 228,308 |
Investment Securities - Mortgag
Investment Securities - Mortgage Backed Securities Policy (Details) | 12 Months Ended | |
Jun. 30, 2022 USD ($) security | Jun. 30, 2021 USD ($) security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Holding Losses Total, Unrealized Losses | $ 14,110,000 | $ 810,000 |
Unrealized Holding Losses Less Than 12 Months, Unrealized Losses | 9,183,000 | 810,000 |
Unrealized Holding Losses 12 Months or More, Unrealized Losses | 4,927,000 | 0 |
U.S. government sponsored enterprise MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Principal payments from investment securities available for sale | 55,300,000 | 52,600,000 |
Proceeds from sale of investment securities available for sale | 0 | 0 |
Payments to acquire Mortgage Backed Securities (MBS) categorized as Held-to-maturity | 19,000,000 | 158,000,000 |
Unrealized Holding Losses 12 Months or More, Unrealized Losses | $ 4,927,000 | $ 0 |
Number of securities in unrealized loss positions | security | 39 | 16 |
U.S. government sponsored enterprise CMO | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized Holding Losses 12 Months or More, Unrealized Losses | $ 0 | |
Number of securities in unrealized loss positions | 2 | |
Private issue CMO | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in unrealized loss positions | security | 3 |
Loans Held for Investment - Sch
Loans Held for Investment - Schedule of Loans Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | $ 937,970 | $ 852,082 | |
Advance payments of escrows | 47 | 157 | |
Deferred loan costs, net | 7,539 | 6,308 | |
Allowance for loan losses | (5,564) | (7,587) | $ (8,265) |
Total loans held for investment, net | 939,992 | 850,960 | |
Mortgage loans, Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | (816) | (1,006) | (1,110) |
Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for loan losses | (23) | (51) | $ (171) |
Mortgage loans, Single-family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | 378,234 | 268,272 | |
Mortgage Loans, Multi Family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | 464,676 | 484,408 | |
Mortgage loans, Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | 90,429 | 95,279 | |
Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | 3,216 | 3,040 | |
Mortgage Loans Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | 123 | 139 | |
Consumer loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | 86 | 95 | |
Commercial business loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | $ 1,206 | $ 849 |
Loans Held for Investment - S_2
Loans Held for Investment - Schedule of Loans Held for Investment Contractually Repricing (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | $ 100,447 | |
Total loans held for investment, gross | 937,970 | $ 852,082 |
Mortgage loans, Single-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 97,405 | |
Total loans held for investment, gross | 378,234 | 268,272 |
Mortgage Loans, Multi Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 172 | |
Total loans held for investment, gross | 464,676 | 484,408 |
Mortgage loans, Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 1,336 | |
Total loans held for investment, gross | 90,429 | 95,279 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 1,074 | |
Total loans held for investment, gross | 3,216 | 3,040 |
Mortgage Loans Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 123 | |
Total loans held for investment, gross | 123 | 139 |
Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 337 | |
Total loans held for investment, gross | 1,206 | 849 |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Fixed Rate | 0 | |
Total loans held for investment, gross | 86 | $ 95 |
Within One Year [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 234,561 | |
Within One Year [Member] | Mortgage loans, Single-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 49,101 | |
Within One Year [Member] | Mortgage Loans, Multi Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 135,586 | |
Within One Year [Member] | Mortgage loans, Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 46,777 | |
Within One Year [Member] | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 2,142 | |
Within One Year [Member] | Mortgage Loans Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
Within One Year [Member] | Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 869 | |
Within One Year [Member] | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 86 | |
After One Year Through 3 Years [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 177,577 | |
After One Year Through 3 Years [Member] | Mortgage loans, Single-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 25,507 | |
After One Year Through 3 Years [Member] | Mortgage Loans, Multi Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 131,136 | |
After One Year Through 3 Years [Member] | Mortgage loans, Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 20,934 | |
After One Year Through 3 Years [Member] | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After One Year Through 3 Years [Member] | Mortgage Loans Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After One Year Through 3 Years [Member] | Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After One Year Through 3 Years [Member] | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 3 Years Through 5 Years [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 203,392 | |
After 3 Years Through 5 Years [Member] | Mortgage loans, Single-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 35,862 | |
After 3 Years Through 5 Years [Member] | Mortgage Loans, Multi Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 146,148 | |
After 3 Years Through 5 Years [Member] | Mortgage loans, Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 21,382 | |
After 3 Years Through 5 Years [Member] | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 3 Years Through 5 Years [Member] | Mortgage Loans Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 3 Years Through 5 Years [Member] | Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 3 Years Through 5 Years [Member] | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 5 Years Through 10 Years [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 221,993 | |
After 5 Years Through 10 Years [Member] | Mortgage loans, Single-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 170,359 | |
After 5 Years Through 10 Years [Member] | Mortgage Loans, Multi Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 51,634 | |
After 5 Years Through 10 Years [Member] | Mortgage loans, Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 5 Years Through 10 Years [Member] | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 5 Years Through 10 Years [Member] | Mortgage Loans Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 5 Years Through 10 Years [Member] | Commercial business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | 0 | |
After 5 Years Through 10 Years [Member] | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, Adjustable Rate | $ 0 |
Loans Held for Investment - S_3
Loans Held for Investment - Schedule of Gross Loans Held for Investment by Loan Types and Risk Category (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Loans and Leases Receivable, Gross | $ 937,970 | $ 852,082 |
Mortgage loans, Single-family | ||
Loans and Leases Receivable, Gross | 378,234 | 268,272 |
Mortgage Loans, Multi Family | ||
Loans and Leases Receivable, Gross | 464,676 | 484,408 |
Mortgage loans, Commercial real estate | ||
Loans and Leases Receivable, Gross | 90,429 | 95,279 |
Construction | ||
Loans and Leases Receivable, Gross | 3,216 | 3,040 |
Mortgage Loans Other | ||
Loans and Leases Receivable, Gross | 123 | 139 |
Commercial business loans | ||
Loans and Leases Receivable, Gross | 1,206 | 849 |
Consumer loans | ||
Loans and Leases Receivable, Gross | 86 | 95 |
Pass | ||
Loans and Leases Receivable, Gross | 936,238 | 840,908 |
Pass | Mortgage loans, Single-family | ||
Loans and Leases Receivable, Gross | 376,502 | 258,217 |
Pass | Mortgage Loans, Multi Family | ||
Loans and Leases Receivable, Gross | 464,676 | 483,289 |
Pass | Mortgage loans, Commercial real estate | ||
Loans and Leases Receivable, Gross | 90,429 | 95,279 |
Pass | Construction | ||
Loans and Leases Receivable, Gross | 3,216 | 3,040 |
Pass | Mortgage Loans Other | ||
Loans and Leases Receivable, Gross | 123 | 139 |
Pass | Commercial business loans | ||
Loans and Leases Receivable, Gross | 1,206 | 849 |
Pass | Consumer loans | ||
Loans and Leases Receivable, Gross | 86 | 95 |
Special Mention | ||
Loans and Leases Receivable, Gross | 224 | 1,767 |
Special Mention | Mortgage loans, Single-family | ||
Loans and Leases Receivable, Gross | 224 | 1,767 |
Special Mention | Mortgage Loans, Multi Family | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Special Mention | Mortgage loans, Commercial real estate | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Special Mention | Construction | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Special Mention | Mortgage Loans Other | ||
Loans and Leases Receivable, Gross | 0 | |
Special Mention | Commercial business loans | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Special Mention | Consumer loans | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Substandard | ||
Loans and Leases Receivable, Gross | 1,508 | 9,407 |
Substandard | Mortgage loans, Single-family | ||
Loans and Leases Receivable, Gross | 1,508 | 8,288 |
Substandard | Mortgage Loans, Multi Family | ||
Loans and Leases Receivable, Gross | 0 | 1,119 |
Substandard | Mortgage loans, Commercial real estate | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Substandard | Construction | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Substandard | Mortgage Loans Other | ||
Loans and Leases Receivable, Gross | 0 | |
Substandard | Commercial business loans | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Substandard | Consumer loans | ||
Loans and Leases Receivable, Gross | $ 0 | $ 0 |
Loans Held for Investment - S_4
Loans Held for Investment - Schedule of Allowance For Loan Losses and Recorded Investment in Gross Loans, by Portfolio Type (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, beginning of the year | $ 7,587 | $ 8,265 |
(Recovery) provision for loan losses | (2,462) | (708) |
Recoveries | 439 | 32 |
Charge-offs | 0 | (2) |
Allowance for loan losses, end of the year | 5,564 | 7,587 |
Individually evaluated for allowances | 38 | 384 |
Collectively evaluated for allowances | 5,526 | 7,203 |
Individually evaluated for allowances | 1,275 | 8,039 |
Collectively evaluated for allowances | 936,695 | 844,043 |
Total Loans Held for Investment, Gross | $ 937,970 | $ 852,082 |
Allowance for loan losses as a percentage of gross loans held for investment | 0.59% | 0.88% |
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period | (0.05%) | 0% |
Mortgage loans, Single-family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, beginning of the year | $ 2,000 | $ 2,622 |
(Recovery) provision for loan losses | (1,056) | (653) |
Recoveries | 439 | 31 |
Charge-offs | 0 | |
Allowance for loan losses, end of the year | 1,383 | 2,000 |
Individually evaluated for allowances | 38 | 384 |
Collectively evaluated for allowances | 1,345 | 1,616 |
Individually evaluated for allowances | 1,275 | 8,039 |
Collectively evaluated for allowances | 376,959 | 260,233 |
Total Loans Held for Investment, Gross | $ 378,234 | $ 268,272 |
Allowance for loan losses as a percentage of gross loans held for investment | 0.37% | 0.75% |
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period | (0.15%) | (0.01%) |
Mortgage Loans, Multi Family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, beginning of the year | $ 4,485 | $ 4,329 |
(Recovery) provision for loan losses | (1,203) | 156 |
Recoveries | 0 | 0 |
Charge-offs | 0 | 0 |
Allowance for loan losses, end of the year | 3,282 | 4,485 |
Individually evaluated for allowances | 0 | 0 |
Collectively evaluated for allowances | 3,282 | 4,485 |
Individually evaluated for allowances | 0 | 0 |
Collectively evaluated for allowances | 464,676 | 484,408 |
Total Loans Held for Investment, Gross | $ 464,676 | $ 484,408 |
Allowance for loan losses as a percentage of gross loans held for investment | 0.71% | 0.93% |
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period | 0% | 0% |
Mortgage loans, Commercial real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, beginning of the year | $ 1,006 | $ 1,110 |
(Recovery) provision for loan losses | (190) | (104) |
Recoveries | 0 | 0 |
Charge-offs | 0 | 0 |
Allowance for loan losses, end of the year | 816 | 1,006 |
Individually evaluated for allowances | 0 | 0 |
Collectively evaluated for allowances | 816 | 1,006 |
Individually evaluated for allowances | 0 | 0 |
Collectively evaluated for allowances | 90,429 | 95,279 |
Total Loans Held for Investment, Gross | $ 90,429 | $ 95,279 |
Allowance for loan losses as a percentage of gross loans held for investment | 0.90% | 1.06% |
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period | 0% | 0% |
Construction | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, beginning of the year | $ 51 | $ 171 |
(Recovery) provision for loan losses | (28) | (120) |
Recoveries | 0 | 0 |
Charge-offs | 0 | 0 |
Allowance for loan losses, end of the year | 23 | 51 |
Individually evaluated for allowances | 0 | 0 |
Collectively evaluated for allowances | 23 | 51 |
Individually evaluated for allowances | 0 | 0 |
Collectively evaluated for allowances | 3,216 | 3,040 |
Total Loans Held for Investment, Gross | $ 3,216 | $ 3,040 |
Allowance for loan losses as a percentage of gross loans held for investment | 0.72% | 1.68% |
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period | 0% | 0% |
Mortgage Loans Other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, beginning of the year | $ 3 | $ 3 |
(Recovery) provision for loan losses | 0 | 0 |
Recoveries | 0 | 0 |
Charge-offs | 0 | 0 |
Allowance for loan losses, end of the year | 3 | 3 |
Individually evaluated for allowances | 0 | 0 |
Collectively evaluated for allowances | 3 | 3 |
Individually evaluated for allowances | 0 | 0 |
Collectively evaluated for allowances | 123 | 139 |
Total Loans Held for Investment, Gross | $ 123 | $ 139 |
Allowance for loan losses as a percentage of gross loans held for investment | 2.44% | 2.16% |
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period | 0% | 0% |
Commercial business loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, beginning of the year | $ 36 | $ 24 |
(Recovery) provision for loan losses | 16 | 12 |
Recoveries | 0 | 0 |
Charge-offs | 0 | 0 |
Allowance for loan losses, end of the year | 52 | 36 |
Individually evaluated for allowances | 0 | 0 |
Collectively evaluated for allowances | 52 | 36 |
Individually evaluated for allowances | 0 | 0 |
Collectively evaluated for allowances | 1,206 | 849 |
Total Loans Held for Investment, Gross | $ 1,206 | $ 849 |
Allowance for loan losses as a percentage of gross loans held for investment | 4.31% | 4.24% |
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period | 0% | 0% |
Consumer loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan losses, beginning of the year | $ 6 | $ 6 |
(Recovery) provision for loan losses | (1) | 1 |
Recoveries | 0 | 1 |
Charge-offs | 0 | (2) |
Allowance for loan losses, end of the year | 5 | 6 |
Individually evaluated for allowances | 0 | 0 |
Collectively evaluated for allowances | 5 | 6 |
Individually evaluated for allowances | 0 | 0 |
Collectively evaluated for allowances | 86 | 95 |
Total Loans Held for Investment, Gross | $ 86 | $ 95 |
Allowance for loan losses as a percentage of gross loans held for investment | 5.81% | 6.32% |
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period | 0% | 1.22% |
Loans Held For Investment - All
Loans Held For Investment - Allowance Roll-forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Loans Held for Investment | ||
Allowance for loan losses, beginning of the year | $ 7,587 | $ 8,265 |
Provision | (2,462) | (708) |
Total recoveries | 439 | 32 |
Total charge-offs | 0 | (2) |
Allowance for loan losses, end of the year | $ 5,564 | $ 7,587 |
Loans Held for Investment - S_5
Loans Held for Investment - Schedule of Total Recorded Investment in Non-Performing Loans by Type (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Unpaid Principal Balance | $ 1,541,000 | $ 9,854,000 |
Related Charge-Offs | (33,000) | (436,000) |
Recorded Investment | 1,508,000 | 9,418,000 |
Related Allowance | (85,000) | (772,000) |
Recorded Investment, Net of Allowance | 1,423,000 | 8,646,000 |
Average Recorded Investment | 4,186,000 | 9,090,000 |
Total interest income recognized | 376,000 | 156,000 |
Mortgage loans, Single-family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
With a related allowance Unpaid Principal Balance | 993,000 | 7,400,000 |
Without a related allowance, Unpaid Principal Balance | 548,000 | 1,335,000 |
Unpaid Principal Balance | 1,541,000 | 8,735,000 |
With Related Allowance, Related Charge-Offs | 0 | 0 |
With No Related Allowance, Related Charge-Offs | (33,000) | (436,000) |
Related Charge-Offs | (33,000) | (436,000) |
With Related Allowance, Recorded Investment | 993,000 | 7,400,000 |
With No Related Allowance, Recorded Investment | 515,000 | 899,000 |
Recorded Investment | 1,508,000 | 8,299,000 |
Related Allowance | (85,000) | (434,000) |
Recorded Investment, with Related Allowance, Net | 908,000 | 6,966,000 |
Recorded Investment, with No Related Allowance, Net | 515,000 | 899,000 |
Recorded Investment, Net of Allowance | 1,423,000 | 7,865,000 |
With related allowances, Average Recorded Investment | 2,594,000 | 7,187,000 |
Without related allowances, Average Recorded Investment | 635,000 | 1,516,000 |
Average Recorded Investment | 3,229,000 | 8,703,000 |
Interest income recognized with a related allowance | 98,000 | 140,000 |
Interest income recognized without a related allowance | 232,000 | |
Total interest income recognized | 330,000 | 140,000 |
Commercial business loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
With a related allowance Unpaid Principal Balance | 0 | |
Unpaid Principal Balance | 0 | |
With Related Allowance, Related Charge-Offs | 0 | |
Related Charge-Offs | 0 | |
With Related Allowance, Recorded Investment | 0 | |
Recorded Investment | 0 | |
Related Allowance | 0 | |
Recorded Investment, with Related Allowance, Net | 0 | |
Recorded Investment, Net of Allowance | 0 | |
With related allowances, Average Recorded Investment | 13,000 | |
Average Recorded Investment | 13,000 | |
Interest income recognized with a related allowance | 1,000 | |
Total interest income recognized | 1,000 | |
Mortgage Loans, Multi Family | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
With a related allowance Unpaid Principal Balance | 0 | 1,119,000 |
Unpaid Principal Balance | 0 | |
With Related Allowance, Related Charge-Offs | 0 | 0 |
Related Charge-Offs | 0 | |
With Related Allowance, Recorded Investment | 0 | 1,119,000 |
Recorded Investment | 0 | |
Related Allowance | (338,000) | |
Recorded Investment, with Related Allowance, Net | 0 | 781,000 |
Recorded Investment, Net of Allowance | 0 | |
With related allowances, Average Recorded Investment | 957,000 | 374,000 |
Average Recorded Investment | 957,000 | 374,000 |
Interest income recognized with a related allowance | 46,000 | 15,000 |
Total interest income recognized | $ 46,000 | $ 15,000 |
Loans Held for Investment - S_6
Loans Held for Investment - Schedule of loan forbearance related to COVID-19 hardship requests (Details) | 12 Months Ended |
Jun. 30, 2022 USD ($) loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Forbearance Granted, Number of Loans | loan | 67 |
Forbearance Granted, Amount | $ 27,202,000 |
Forbearance Completed, Number of Loans | loan | 67 |
Forbearance Completed, Amount | $ 27,202,000 |
Number of forbearance loans subsequently extended | loan | 19 |
Amount of forbearance loans subsequently extended | $ 6,900,000 |
Mortgage loans, Single-family | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Forbearance Granted, Number of Loans | loan | 59 |
Forbearance Granted, Amount | $ 22,980,000 |
Forbearance Completed, Number of Loans | loan | 59 |
Forbearance Completed, Amount | $ 22,980,000 |
Value of pending requests for payment relief | $ 0 |
Mortgage Loans, Multi Family | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Forbearance Granted, Number of Loans | loan | 5 |
Forbearance Granted, Amount | $ 2,268,000 |
Forbearance Completed, Number of Loans | loan | 5 |
Forbearance Completed, Amount | $ 2,268,000 |
Mortgage loans, Commercial real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Forbearance Granted, Number of Loans | loan | 3 |
Forbearance Granted, Amount | $ 1,954,000 |
Forbearance Completed, Number of Loans | loan | 3 |
Forbearance Completed, Amount | $ 1,954,000 |
Loans Held for Investment - S_7
Loans Held for Investment - Schedule of Past Due Status of Loans Held for Investment, Gross (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans deemed uncollectible, period of delinquency | 90 days | 90 days |
Non-accrual | $ 1,508 | $ 9,407 |
Total loans held for investment, gross | 937,970 | 852,082 |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 936,459 | 842,668 |
30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 3 | 7 |
Mortgage loans, Single-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 1,508 | 8,288 |
Total loans held for investment, gross | 378,234 | 268,272 |
Mortgage loans, Single-family | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 376,726 | 259,984 |
Mortgage loans, Single-family | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 0 | |
Mortgage Loans, Multi Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 1,119 |
Total loans held for investment, gross | 464,676 | 484,408 |
Mortgage Loans, Multi Family | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 464,676 | 483,289 |
Mortgage Loans, Multi Family | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Mortgage loans, Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Total loans held for investment, gross | 90,429 | 95,279 |
Mortgage loans, Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 90,429 | 95,279 |
Mortgage loans, Commercial real estate | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Total loans held for investment, gross | 3,216 | 3,040 |
Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 3,216 | 3,040 |
Construction | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Mortgage Loans Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Total loans held for investment, gross | 123 | 139 |
Mortgage Loans Other | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 123 | 139 |
Mortgage Loans Other | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Commercial business loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Total loans held for investment, gross | 1,206 | 849 |
Commercial business loans | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 1,206 | 849 |
Commercial business loans | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 0 | 0 |
Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual | 0 | 0 |
Total loans held for investment, gross | 86 | 95 |
Consumer loans | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | 83 | 88 |
Consumer loans | 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment, gross | $ 3 | $ 7 |
Bankruptcy [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans deemed uncollectible, period of delinquency | 60 days | |
Troubled Debt Restructurings [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans deemed uncollectible, period of delinquency | 90 days | |
Commercial Real Estate Or Second Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans deemed uncollectible, period of delinquency | 120 days |
Loans Held for Investment - S_8
Loans Held for Investment - Schedule of restructured loan balances, net of allowance for loan losses, by loan type and by Nonaccrual Versus Accrual Status (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Modifications [Line Items] | ||
Restructured loans on non-accrual status | $ 722 | $ 6,983 |
Restructured loans on accrual status | 3,748 | 876 |
Total restructured loans | 4,470 | 7,859 |
Mortgage loans, Single-family | ||
Financing Receivable, Modifications [Line Items] | ||
Restructured loans on non-accrual status | 722 | 6,983 |
Restructured loans on accrual status | $ 3,748 | 876 |
Current Payment Status | ||
Financing Receivable, Modifications [Line Items] | ||
Total restructured loans | $ 7,700 |
Loans Held for Investment - S_9
Loans Held for Investment - Schedule of Restructured Loans by Type, Net of Individually Evaluated Allowances (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Financing Receivable, Impaired [Line Items] | ||
Restructured Loans, Allowance for Loan Losses | $ (38) | $ (384) |
Restructured Loans, Unpaid Principal Balance | 4,508 | 8,608 |
Restructured Loans, Related Charge-offs | 0 | (365) |
Restructured Loans, Recorded Investment | 4,508 | 8,243 |
Restructured loans, net investment | 4,470 | 7,859 |
Mortgage loans, Single-family | ||
Financing Receivable, Impaired [Line Items] | ||
Restructured Loans, With Related Allowance, Unpaid Principal Balance | 760 | 7,151 |
Restructured Loans, With Related Allowance, Related Charge-offs | 0 | |
Restructured Loans, With a Related Allowance, Recorded Investment | 760 | 7,151 |
Restructured Loans, Allowance for Loan Losses | (38) | (384) |
Restructured loans, with a related allowance, net investment | 722 | 6,767 |
Restructured Loans, Without a Related Allowance, Unpaid Principal Balance | 3,748 | 1,457 |
Restructured Loans, Without a Related Allowance, Related Charge-offs | 0 | (365) |
Restructured Loans, Without a Related Allowance, Recorded Investment | 3,748 | 1,092 |
Restructured Loans, Without a Related Allowance, Net Investment | 3,748 | 1,092 |
Restructured Loans, Unpaid Principal Balance | 4,508 | 8,608 |
Restructured Loans, Related Charge-offs | 0 | (365) |
Restructured Loans, Recorded Investment | 4,508 | 8,243 |
Restructured loans, net investment | $ 4,470 | $ 7,859 |
Loans Held For Investment - Rel
Loans Held For Investment - Related Party Loan Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, beginning of year | $ 0 | $ 1 |
Sales and payments | 0 | (1) |
Balance, end of year | $ 0 | $ 0 |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Details) | 12 Months Ended | |
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | |
Fixed-rate loans as a percentage of total loans held for investment | 11% | 4% |
Loans deemed uncollectible, period of delinquency | 90 days | 90 days |
Restructured loans amount | $ 4,470,000 | $ 7,859,000 |
Loans held for investment | 937,970,000 | $ 852,082,000 |
Payment deferral extension term | 6 months | |
Loan interest income added to negative amortization loan balance | 0 | |
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | $ 0 |
Non-performing loans received | 405,000 | 209,000 |
Non-performing loans interest recognized as principal payments, cost basis | 29,000 | 53,000 |
Interest income, non-performing loans, cash basis | 376,000 | 156,000 |
Average investment in non-performing loans | $ 4,186,000 | 9,090,000 |
Loans receivable, modified and extended beyond initial maturity | $ 4,700,000 | |
Number of loans newly restructured | loan | 0 | |
Number of Covid-19 related loans newly restructured | loan | 19 | |
Number of forbearance loans | loan | 0 | |
Number of modified loans | loan | 13 | 23 |
Restructured Loans, Number of Loans Paid off | loan | 7 | 3 |
Number of loans converted into real estate owned | loan | 0 | 0 |
Number of restructured loans | loan | 0 | 0 |
Number of loans modified, extended beyond initial maturity | loan | 0 | 12 |
Restructured loans on non-accrual status | $ 1,508,000 | $ 9,407,000 |
Number of loans paid off which is extended beyond forbearance | loan | 5 | |
Amount of loans paid off which is extended beyond forbearance | $ 2,200,000 | |
Number of loans nonperforming which is extended beyond initial forbearance | loan | 1 | |
Amount of loans nonperforming which is extended beyond initial forbearance | $ 760,000 | |
First Trust Deed Loans | ||
Loans deemed uncollectible, period of delinquency | 150 days | |
Mortgage loans, Commercial real estate | ||
Restructured loans on non-accrual status | $ 0 | 0 |
Mortgage loans, Single-family | ||
Interest income, non-performing loans, cash basis | 330,000 | 140,000 |
Average investment in non-performing loans | 3,229,000 | 8,703,000 |
Restructured loans on non-accrual status | 1,508,000 | 8,288,000 |
Commercial business loans | ||
Interest income, non-performing loans, cash basis | 1,000 | |
Average investment in non-performing loans | 13,000 | |
Restructured loans on non-accrual status | $ 0 | $ 0 |
Bankruptcy [Member] | ||
Loans deemed uncollectible, period of delinquency | 60 days | |
Troubled Debt Restructurings [Member] | ||
Loans deemed uncollectible, period of delinquency | 90 days | |
Commercial Real Estate Or Second Mortgage [Member] | ||
Loans deemed uncollectible, period of delinquency | 120 days | |
Restructured loans on non-accrual status | ||
Number of modified loans | loan | 20 | |
Maximum | ||
Segregated restructured loans, period of delinquency | 90 days | |
Maximum | Bankruptcy [Member] | ||
Allowance for loan losses, pooling method, period of delinquency | 60 days | |
Substandard | ||
Restructured loans amount | $ 722,000 | $ 7,000,000 |
Loans held for investment | $ 1,508,000 | $ 9,407,000 |
Number of modified loans | loan | 1 | 20 |
Pass | ||
Restructured loans amount | $ 876,000 | |
Loans held for investment | $ 936,238,000 | $ 840,908,000 |
Number of modified loans | loan | 3 | |
Number of loans upgraded | loan | 3 | 2 |
Number of loans upgraded which is extended beyond initial forbearance | loan | 13 | |
Amount of loans upgraded which is extended beyond initial forbearance | $ 3,900,000 | |
Special Mention | ||
Loans held for investment | 224,000 | $ 1,767,000 |
Current Payment Status | ||
Restructured loans amount | $ 7,700,000 | |
Percent of total restructured loans on current status | 97% | |
Mortgage loans, Single-family | ||
Loans held for investment | 378,234,000 | $ 268,272,000 |
Mortgage loans, Single-family | Substandard | ||
Loans held for investment | 1,508,000 | 8,288,000 |
Mortgage loans, Single-family | Pass | ||
Loans held for investment | 376,502,000 | 258,217,000 |
Mortgage loans, Single-family | Special Mention | ||
Loans held for investment | 224,000 | 1,767,000 |
Mortgage Loans, Multi Family | ||
Loans held for investment | 464,676,000 | 484,408,000 |
Mortgage Loans, Multi Family | Substandard | ||
Loans held for investment | 0 | 1,119,000 |
Mortgage Loans, Multi Family | Pass | ||
Loans held for investment | 464,676,000 | 483,289,000 |
Mortgage Loans, Multi Family | Special Mention | ||
Loans held for investment | $ 0 | $ 0 |
Leases - Supplemental informati
Leases - Supplemental information (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Leases | ||
Lease expense | $ 880,000 | $ 866,000 |
Consolidated Statements of Condition: | ||
Premises and equipment - Operating lease right of use assets | 1,969,000 | 2,117,000 |
Accounts payable, accrued interest and other liabilities - Operating lease liabilities | $ 1,998,000 | $ 2,192,000 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Consolidated Statements of Operations: | ||
Premises and occupancy expenses from operating leases | $ 788,000 | $ 797,000 |
Equipment expenses from operating leases | 92,000 | 69,000 |
Consolidated Statements of Cash Flows: | ||
Operating cash flows for operating leases, net | $ 921,000 | $ 905,000 |
Leases - Remaining minimum cont
Leases - Remaining minimum contractual lease payments and other information (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Remaining minimum contractual lease payments and other information associated with the leases | |
2023 | $ 832 |
2024 | 555 |
2025 | 400 |
2026 | 236 |
2027 | 39 |
Total contract lease payments | 2,062 |
Total liability to make lease payments | 1,998 |
Difference in undiscounted and discounted future lease payments | $ 64 |
Weighted average discount rate | 1.97% |
Weighted average remaining lease term (years) | 3 years 1 month 6 days |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Premises and Equipment | ||
Operating lease - right of use assets | $ 1,969 | $ 2,117 |
Premises and equipment, gross | 23,308 | 23,355 |
Less accumulated depreciation and amortization | (14,482) | (13,978) |
Total premises and equipment, net | 8,826 | 9,377 |
Depreciation and amortization expense | 1,500 | 1,600 |
Land | ||
Premises and Equipment | ||
Premises and equipment, gross | 2,853 | 2,853 |
Buildings | ||
Premises and Equipment | ||
Premises and equipment, gross | 9,896 | 9,772 |
Leasehold improvements | ||
Premises and Equipment | ||
Premises and equipment, gross | 2,996 | 3,033 |
Furniture and equipment | ||
Premises and Equipment | ||
Premises and equipment, gross | 5,427 | 5,416 |
Automobiles | ||
Premises and Equipment | ||
Premises and equipment, gross | $ 167 | $ 164 |
Deposits - Summary of deposits
Deposits - Summary of deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Deposit Liabilities [Line Items] | ||
Checking deposits - non interest-bearing | $ 125,089 | $ 123,179 |
Checking deposits - interest-bearing | 335,788 | 327,388 |
Savings deposits | 333,581 | 307,299 |
Money market deposits | 39,897 | 39,670 |
Total deposits | $ 955,504 | $ 937,973 |
Weighted-average interest rate on deposits | 0.11% | 0.15% |
Under $100 | ||
Deposit Liabilities [Line Items] | ||
Time deposits | $ 60,721 | $ 71,026 |
$100 and over | ||
Deposit Liabilities [Line Items] | ||
Time deposits | $ 60,428 | $ 69,411 |
Minimum | ||
Deposit Liabilities [Line Items] | ||
Checking deposits - interest-bearing, Interest Rate | 0% | 0% |
Savings deposits, Interest Rate | 0% | 0% |
Money market deposits, Interest Rate | 0% | 0% |
Minimum | Under $100 | ||
Deposit Liabilities [Line Items] | ||
Time deposits, Interest Rate | 0% | 0% |
Minimum | $100 and over | ||
Deposit Liabilities [Line Items] | ||
Time deposits, Interest Rate | 0.05% | 0.05% |
Maximum | ||
Deposit Liabilities [Line Items] | ||
Checking deposits - interest-bearing, Interest Rate | 0.20% | 0.20% |
Savings deposits, Interest Rate | 0.70% | 0.70% |
Money market deposits, Interest Rate | 2% | 2% |
Maximum | Under $100 | ||
Deposit Liabilities [Line Items] | ||
Time deposits, Interest Rate | 2.13% | 2.13% |
Maximum | $100 and over | ||
Deposit Liabilities [Line Items] | ||
Time deposits, Interest Rate | 2.13% | 2.13% |
Deposits - Aggregate annual mat
Deposits - Aggregate annual maturities of time deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Deposits | ||
One year or less | $ 78,644 | $ 76,705 |
Over one to two years | 20,600 | 37,687 |
Over two to three years | 13,890 | 11,230 |
Over three to four years | 3,552 | 11,923 |
Over four to five years | 3,186 | 2,493 |
Over five years | 1,277 | 399 |
Total time deposits | $ 121,149 | $ 140,437 |
Deposits - Interest expense on
Deposits - Interest expense on deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Deposits | ||
Checking deposits - interest-bearing | $ 149 | $ 188 |
Savings deposits | 172 | 208 |
Money market deposits | 71 | 80 |
Time deposits | 752 | 1,269 |
Total interest expense on deposits | $ 1,144 | $ 1,745 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - Federal Reserve Bank of San Francisco | 12 Months Ended | |
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Deposit Liabilities [Line Items] | ||
Percentage of reserve ratios on transaction accounts maintained in depository institution | 0 | 0 |
Minimum reserve | $ 0 | $ 0 |
Borrowings (Details)
Borrowings (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Collateral pledged on Federal Home Loan Bank advances | $ 570,400,000 | $ 607,000,000 |
Federal Home Loan Bank stock, cash dividends distributed | 489,000 | 418,000 |
Advances, Federal Funds Facility with Correspondent Bank | 50,000,000 | 17,000,000 |
Federal Home Loan Bank stock, redeemed amount | 0 | 0 |
Purchase of FHLB - San Francisco stock | 84,000 | 185,000 |
Discount Window Facility [Member] | ||
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Federal Reserve Bank of San Francisco | 0 | 0 |
San Francisco [Member] | ||
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Federal Home Loan Bank advances, limit on borrowing capacity, amount | 415,700,000 | 416,200,000 |
Federal Home Loan Bank advances, unused borrowing facility | 310,300,000 | 296,800,000 |
Federal Home Loan Bank advances, available collateral | 310,500,000 | 343,100,000 |
Federal Reserve Bank of San Francisco | 85,000,000 | 100,983,000 |
Outstanding letters of credit | 18,000,000 | 16,000,000 |
Federal Home Loan Bank stock, required investment | 8,200,000 | 8,200,000 |
Federal Home Loan Bank stock, excess investment | 0 | 0 |
Federal Reserve Bank of San Francisco | ||
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Purchase of FHLB - San Francisco stock | 84,000 | 185,000 |
Federal Reserve Bank of San Francisco | Discount Window Facility [Member] | ||
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Federal Reserve Bank of San Francisco | 153,900,000 | 206,100,000 |
FHLB - San Francisco | MPF Credit Enhancement [Member] | ||
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
MPF credit enhancement | $ 2,500,000 | $ 2,500,000 |
FHLB - San Francisco | Maximum | ||
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Federal Home Loan Bank advances, limit on borrowing capacity (percent of total assets) | 35% | 35% |
FHLB - San Francisco | Mortgage Loans on Real Estate. | ||
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Collateral pledged on Federal Home Loan Bank advances | $ 570,400,000 | $ 607,000,000 |
FHLB - San Francisco | Investment Securities [Member] | ||
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Collateral pledged on Federal Home Loan Bank advances | 4,700,000 | 1,600,000 |
FHLB - San Francisco | Investment Securities [Member] | Discount Window Facility [Member] | ||
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Collateral pledged on Federal Home Loan Bank advances | $ 163,700,000 | $ 219,200,000 |
Borrowings - FHLB Advances (Det
Borrowings - FHLB Advances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Purchase of FHLB - San Francisco stock | $ 84 | $ 185 |
San Francisco [Member] | ||
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Federal Reserve Bank of San Francisco | $ 85,000 | $ 100,983 |
Borrowings - Weighted Average D
Borrowings - Weighted Average Disclosures (Details) - San Francisco [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Balance outstanding at the end of year: FHLB - San Francisco advances | $ 85,000 | $ 100,983 |
Weighted-average rate at the end of year: FHLB - San Francisco advances | 2.20% | 2.19% |
Maximum amount of borrowings outstanding at any month end: FHLB - San Francisco advances | $ 100,978 | $ 141,042 |
Average short-term borrowings during the year with respect to: FHLB - San Francisco advances | $ 25,513 | $ 35,631 |
Weighted-average short-term borrowing rate during the year with respect to: FHLB - San Francisco advances | 1.87% | 2.14% |
Borrowings - Contractual Maturi
Borrowings - Contractual Maturities (Details) - San Francisco [Member] - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Discount window facility is with FHLB and Federal Reserve Bank of San Francisco | ||
Within one year | $ 35,000 | $ 20,983 |
Over one to two years | 30,000 | 30,000 |
Over two to three years | 20,000 | 30,000 |
Over three to four years | 0 | 20,000 |
Over four to five years | 0 | 0 |
Over five years | 0 | 0 |
Total borrowings | $ 85,000 | $ 100,983 |
Weighted average interest rate | 2.20% | 2.19% |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Current: | ||
Federal | $ 1,781 | $ 1,547 |
State | 844 | 598 |
Provision for income taxes, current | 2,625 | 2,145 |
Deferred: | ||
Federal | 696 | 303 |
State | 444 | 178 |
Provision for income taxes, Deferred | 1,140 | 481 |
Provision for income taxes | $ 3,765 | $ 2,626 |
Income Taxes - Effective tax ra
Income Taxes - Effective tax rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Taxes | ||
Federal income tax at statutory rate, Amount | $ 2,700 | $ 2,139 |
Federal income tax at statutory rate, Tax rate | 21% | 21% |
State income tax, net of federal income tax benefit, Amount | $ 988 | $ 614 |
State income tax, net of federal income tax benefit, Tax rate | 7.68% | 6.05% |
Bank-owned life insurance, Amount | $ (39) | $ (40) |
Bank-owned life insurance, Tax Rate | (0.31%) | (0.39%) |
Non-deductible expenses, Amount | $ 8 | $ 6 |
Non-deductible expenses, Tax Rate | 0.06% | 0.06% |
Non-deductible stock-based compensation, Amount | $ 0 | $ (30) |
Non-deductible stock-based compensation, Tax Rate | 0% | (0.30%) |
Excess tax benefit on stock-based compensation | $ 0 | $ (64) |
Excess tax benefit on stock-based compensation, Tax rate | 0% | |
Return to provision adjustment, Amount | $ 107 | |
Return to provision adjustment, Tax rate | 0.84% | |
Other, Amount | $ 1 | $ 1 |
Other, Tax Rate | 0.01% | (0.64%) |
Effective income tax, Amount | $ 3,765 | $ 2,626 |
Effective income tax, Tax rate | 29.28% | 25.78% |
Income Taxes - Income Taxes (De
Income Taxes - Income Taxes (Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Income Tax Disclosure [Line Items] | ||
Total net deferred tax assets | $ 1,432 | $ 2,543 |
Federal | ||
Income Tax Disclosure [Line Items] | ||
Total net deferred tax assets | 947 | 1,617 |
State and Local Jurisdiction | ||
Income Tax Disclosure [Line Items] | ||
Total net deferred tax assets | $ 485 | $ 926 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Deferred Tax Assets [Abstract] | ||
Loss reserves | $ 1,968 | $ 2,734 |
Non-accrued interest | 199 | 392 |
Deferred compensation | 2,903 | 2,512 |
Accrued vacation | 178 | 197 |
Depreciation | 211 | 153 |
State tax | 64 | 0 |
Other | 245 | 307 |
Total deferred tax assets | 5,768 | 6,295 |
Deferred Tax Liabilities [Abstract] | ||
FHLB - San Francisco stock dividends | (645) | (645) |
Prepaid expenses | (28) | (41) |
Unrealized loss (gain) on investment securities | 1 | (27) |
Unrealized gain on interest-only strips | (2) | (3) |
Deferred loan costs | (3,662) | (2,974) |
State tax | 0 | (62) |
Total deferred tax liabilities | (4,336) | (3,752) |
Net deferred tax assets | $ 1,432 | $ 2,543 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Taxes | ||
Income tax (deficit) benefit recognized from non-qualified equity compensation | $ 0 | $ 91,000 |
Net tax loss carryforwards, federal | 0 | 0 |
Retained earnings | 9,000,000 | 9,000,000 |
Federal income tax | 696,000 | 303,000 |
Unrecognized Tax Benefits | 0 | 0 |
Income Tax Examination, Penalties Expense | 0 | 0 |
Income Tax Examination, Interest Expense | 0 | 0 |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Bad Debt Reserve for Tax Purposes of Qualified Lender | $ 3,100,000 | $ 3,100,000 |
Capital (Details)
Capital (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Cash dividends declared and paid | $ 7,500 | $ 5,000 |
Provident Financial Holding | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 Leverage Capital, Actual, Amount | 124,871 | 121,621 |
Total Risk-Based Capital, Actual, Amount | $ 130,565 | $ 129,335 |
Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | 10.50% |
Tier 1 Leverage Capital, Actual, Ratio | 10.47 | 10.19 |
Tier 1 Risk-Based Capital, Actual, Ratio | 19.58 | 18.58 |
Tier One Risk Based Capital Required for Capital Adequacy | $ 54,221 | $ 55,634 |
Tier One Risk Based Capital Required for Capital Adequacy, Ratio | 8.50 | 8.50 |
Total Risk-Based Capital, Actual, Ratio | 20.47% | 19.76% |
Tier 1 Leverage Capital, For Capital Adequacy Purposes, Amount | $ 47,699 | $ 47,736 |
Total Risk-Based Capital, For Capital Adequacy Purposes, Amount | $ 66,979 | $ 68,724 |
Tier 1 Leverage Capital, For Capital Adequacy Purposes, Ratio (greater than or equal to) | 4 | 4 |
Tier 1 Leverage Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 59,624 | $ 59,670 |
Tier 1 Risk-Based Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 51,032 | 52,361 |
Total Risk-Based Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 63,790 | $ 65,452 |
Tier 1 Leverage Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (greater than or equal to) | 5 | 5 |
CET1 Risk Based Capital | $ 124,871 | $ 121,621 |
CET1 Risk Based Capital to Risk Weighted Assets | 19.58% | 18.58% |
CET1 Risk Based Capital Required for Capital Adequacy | $ 44,653 | $ 45,816 |
CET1 Leverage Capital, For Capital Adequacy Purposes, Ratio (greater than or equal to) | 7% | 7% |
CET1 Risk Based Capital Required to be Well Capitalized | $ 41,463 | $ 42,544 |
CET1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier One Risk Based Capital | $ 124,871 | $ 121,621 |
Tier 1 Risk-Based Capital, To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (greater than or equal to) | 8 | 8 |
Total Risk-Based Capital, Ratio (greater than or equal to) | 10% | 10% |
Benefit Plans - Post-retirement
Benefit Plans - Post-retirement (Details) | 12 Months Ended | |
Jun. 30, 2022 USD ($) Office | Jun. 30, 2021 USD ($) Office | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||
Cash surrender value of bank owned life insurance | $ 8,200,000 | $ 8,000,000 |
Bank owned life insurance, non-taxable income | $ 188,000 | $ 191,000 |
Executive Officer [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||
Number of executive officers | Office | 2 | 2 |
Post-retirement compensation liability | $ 6,800,000 | $ 6,600,000 |
Post-retirement compensation expense | $ 217,000 | $ 563,000 |
401(k) defined contribution plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||
Employer matching contributions (percent) | 3% | 3% |
Employee contributions, immediate vesting (percent) | 100% | 100% |
Vesting term for employer matching contributions | 6 years | 6 years |
401(k) defined contribution expense | $ 297,000 | $ 297,000 |
Benefit Plans - ESOP (Details)
Benefit Plans - ESOP (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
ESOP, requisite service period | 1 year | 1 year | ||
ESOP, requisite service period (per year) | 1000 hours | 1000 hours | ||
ESOP, shares purchased to partially fulfill annual discretionary allocation | 20,000 | 40,000 | ||
ESOP, cash contribution | $ 317,000 | |||
ESOP, vesting percentage | 100% | |||
ESOP, vesting period | 6 years | |||
ESOP expense | $ 659,000 | $ 577,000 | ||
ESOP, number of allocated shares acquired with employer loan | 40,000 | 40,000 | ||
Minimum | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||||
ESOP participation age limit | 21 years | 21 years |
Incentive Plans - Equity Incent
Incentive Plans - Equity Incentive Plan Policy Valuation Assumptions (Details) - Equity Incentive Plans - Stock Option | 12 Months Ended |
Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 20.30% |
Weighted-average volatility | 20.30% |
Expected dividend yield | 3.40% |
Expected term (in years) | 7 years 4 months 24 days |
Risk-free interest rate | 1.40% |
Incentive Plans - Summary of St
Incentive Plans - Summary of Stock Option Activity (Details) - Equity Incentive Plans - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Shares: | ||
Outstanding, Beginning of Period | 417,000 | 554,500 |
Granted | 17,000 | 0 |
Exercised | 0 | (132,000) |
Forfeited | 0 | (5,500) |
Expired | (3,000) | |
Outstanding, End of Period | 431,000 | 417,000 |
Vested and expected to vest at year end | 419,200 | 408,000 |
Exercisable at year end | 372,000 | 372,000 |
Weighted-Average Exercise Price (in dollars per share): | ||
Outstanding, Beginning of Period | $ 16.22 | $ 14.07 |
Granted | 16.70 | 0 |
Exercised | 0 | 7.43 |
Forfeited | 0 | 10.68 |
Expired | 16.70 | |
Outstanding, End of Period | 16.24 | 16.22 |
Vested and expected to vest at year end | 16.15 | 16.13 |
Exercisable at year end | $ 15.74 | $ 15.74 |
Weighted- Average Remaining Contractual Term (Years): | ||
Outstanding at year end | 3 years 5 months 23 days | 4 years 3 months 10 days |
Vested and expected to vest at year end | 3 years 4 months 9 days | 4 years 2 months 12 days |
Exercisable at year end | 2 years 10 months 2 days | 3 years 10 months 2 days |
Aggregate Intrinsic Value ($000): | ||
Outstanding at year end | $ 63 | $ 760 |
Vested and expected to vest at year end | 63 | 760 |
Exercisable at year end | $ 63 | $ 760 |
Incentive Plans - Summary of Un
Incentive Plans - Summary of Unvested Restricted Stock Activity (Details) - Restricted Stock - Equity Incentive Plans - $ / shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Shares | ||
Unvested, Beginning of Period | 101,250 | 225,500 |
Granted | 1,000 | 0 |
Vested | (1,000) | (112,750) |
Forfeited | (6,500) | (11,500) |
Unvested, End of Period | 94,750 | 101,250 |
Expected to vest at year end | 75,800 | 81,000 |
Weighted-Average Award Date Fair Value | ||
Unvested, Beginning of Period | $ 18.57 | $ 18.55 |
Granted | 16.70 | 0 |
Vested | 16.70 | 18.53 |
Forfeited | 18.57 | 18.57 |
Unvested, End of Period | 18.57 | 18.57 |
Expected to vest at year end | $ 18.57 | $ 18.57 |
Incentive Plans - Additional In
Incentive Plans - Additional Information (Details) | 12 Months Ended | |
Jun. 30, 2022 USD ($) plan shares | Jun. 30, 2021 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
ShareBased Compensation Arrangement By Share Based Payment Award Number Of Share Based Compensation Plans | plan | 3 | |
Compensation cost | $ | $ 798,000 | $ 1,300,000 |
Equity Incentive Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options, Exercised | 0 | 132,000 |
Stock options, Granted | 17,000 | 0 |
Stock options, Forfeited | 0 | 5,500 |
Stock options, expired | 3,000 | |
Stock Option | Equity Incentive Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum term for stock awards | 10 years | 10 years |
Term used to calculate expected volatility | 84 months | 84 months |
Stock options, Exercised | 0 | 132,000 |
Stock options, Granted | 14,000 | 0 |
Stock options, Forfeited | 0 | 5,500 |
Stock options, expired | 3,000 | |
Number of shares available for grant | 43,500 | 60,500 |
Unrecognized share-based compensation expense, stock options | $ | $ 94,000 | $ 114,000 |
Share-based compensation cost not yet recognized, weighted average period for recognition (less than) | 1 year 7 months 6 days | 1 year 10 months 24 days |
Forfeiture rate for equity incentive plans | 20% | 20% |
Stock Option | 2013 Equity Incentive Plan ("2013 Plan") | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for Equity Incentive Plan | 300,000 | 300,000 |
Annual limitation on awards granted to an individual under Equity Incentive Plan | 60,000 | 60,000 |
Stock Option | 2010 Equity Incentive Plan ("2010 Plan") | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for Equity Incentive Plan | 586,250 | 586,250 |
Stock Option | 2006 Equity Incentive Plan ("2006 Plan") | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for Equity Incentive Plan | 365,000 | 365,000 |
Restricted Stock | Equity Incentive Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 10 months 24 days | 1 year 10 months 24 days |
Forfeiture rate for equity incentive plans | 20% | 20% |
Restricted stock, grants in period | 1,000 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 17,000 | $ 2,100,000 |
Restricted stock, Forfeited | 6,500 | 11,500 |
Restricted stock, Vesting and distribution | 1,000 | 112,750 |
Unrecognized share-based compensation expense, restricted stock | $ | $ 994,000 | $ 1,800,000 |
Restricted Stock | 2013 Equity Incentive Plan ("2013 Plan") | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for Equity Incentive Plan | 300,000 | 300,000 |
Annual limitation on awards granted to an individual under Equity Incentive Plan | 45,000 | 45,000 |
Number of shares available for grant | 68,250 | 62,750 |
Restricted Stock | 2010 Equity Incentive Plan ("2010 Plan") | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for Equity Incentive Plan | 288,750 | 288,750 |
Restricted Stock | 2006 Equity Incentive Plan ("2006 Plan") | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for Equity Incentive Plan | 185,000 | 185,000 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||
Net income - numerator for basic earnings per share and diluted earnings per share - available to common stockholders | $ 9,093 | $ 7,561 |
Denominator for basic earnings per share: | ||
Weighted-average shares | 7,404,089 | 7,464,814 |
Denominator for diluted earnings per share: | ||
Adjusted weighted-average shares and assumed conversions | 7,449,004 | 7,538,409 |
Basic earnings per share | $ 1.23 | $ 1.01 |
Diluted earnings per share | $ 1.22 | $ 1 |
Stock Option | ||
Denominator for basic earnings per share: | ||
Effect of dilutive shares | 29,614 | 49,917 |
Restricted Stock | ||
Denominator for basic earnings per share: | ||
Effect of dilutive shares | 15,301 | 23,678 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 130,000 | 116,000 |
Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options, outstanding | 431,000 | 417,000 |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Restricted stock, outstanding | 94,750 | 101,250 |
Commitments and Contingencies -
Commitments and Contingencies - Operating Lease Obligations (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Lessee, Lease, Description [Line Items] | |
2023 | $ 832 |
2024 | 555 |
2025 | 400 |
2026 | 236 |
2027 | 39 |
Total contract lease payments | 2,062 |
ASC 842 | |
Lessee, Lease, Description [Line Items] | |
2023 | 1,192 |
2024 | 589 |
2025 | 435 |
2026 | 250 |
2027 | 41 |
Thereafter | 0 |
Total contract lease payments | $ 2,507 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Loss Contingencies | ||
Operating Lease, Expense | $ 1,800,000 | $ 1,700,000 |
Other Investors | ||
Loss Contingencies | ||
Recourse liability | 150,000 | 175,000 |
Mortgage Partnership Finance (MPF) Program | ||
Loss Contingencies | ||
Recourse liability | $ 10,000 | $ 25,000 |
Derivative and Other Financia_3
Derivative and Other Financial Instruments with Off-Balance Sheet Risks - Schedule of Undisbursed Funds Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Derivative [Line Items] | ||
Total | $ 47,701 | $ 27,251 |
Undisbursed loan funds - Construction loans | ||
Derivative [Line Items] | ||
Total | 3,384 | 4,479 |
Undisbursed lines of credit - Commercial business loans | ||
Derivative [Line Items] | ||
Total | 541 | 460 |
Undisbursed lines of credit - Consumer loans | ||
Derivative [Line Items] | ||
Total | 390 | 425 |
Commitments to extend credit on loans to be held for investment | ||
Derivative [Line Items] | ||
Total | $ 43,386 | $ 21,887 |
Derivative and Other Financia_4
Derivative and Other Financial Instruments with Off-Balance Sheet Risks - Schedule of Allowance for Loan Losses of Undisbursed Funds and Commitments on Loans Held for Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan losses, beginning of the year | $ 7,587 | $ 8,265 |
Provision | (2,462) | (708) |
Allowance for loan losses, end of the year | 5,564 | 7,587 |
Commitments to extend credit on loans to be held for sale | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan losses, beginning of the year | 127 | 126 |
Provision | 3 | 1 |
Allowance for loan losses, end of the year | $ 130 | $ 127 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value of Financial Instruments | ||
Loans held for investment, Aggregate Fair Value | $ 1,396 | $ 1,874 |
Loans held for investment, Aggregate Unpaid Principal Balance | 1,569 | 1,934 |
Loans held for investment, Net Unrealized Loss | $ (173) | $ (60) |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Corporations assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for investment, at fair value | $ 1,396 | $ 1,874 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 2,676 | 3,587 |
Loans held for investment, at fair value | 1,396 | 1,874 |
Interest-only strips | 7 | 10 |
Total assets | 4,079 | 5,471 |
Liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | U.S. government agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 1,698 | 2,222 |
Recurring | U.S. government sponsored enterprise MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 865 | 1,211 |
Recurring | Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 113 | 154 |
Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Loans held for investment, at fair value | 0 | 0 |
Interest-only strips | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Fair Value, Inputs, Level 1 | U.S. government agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Fair Value, Inputs, Level 1 | U.S. government sponsored enterprise MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Fair Value, Inputs, Level 1 | Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 2,563 | 3,433 |
Loans held for investment, at fair value | 0 | 0 |
Interest-only strips | 0 | 0 |
Total assets | 2,563 | 3,433 |
Liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Fair Value, Inputs, Level 2 | U.S. government agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 1,698 | 2,222 |
Recurring | Fair Value, Inputs, Level 2 | U.S. government sponsored enterprise MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 865 | 1,211 |
Recurring | Fair Value, Inputs, Level 2 | Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 113 | 154 |
Loans held for investment, at fair value | 1,396 | 1,874 |
Interest-only strips | 7 | 10 |
Total assets | 1,516 | 2,038 |
Liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Fair Value, Inputs, Level 3 | U.S. government agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Fair Value, Inputs, Level 3 | U.S. government sponsored enterprise MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | 0 | 0 |
Recurring | Fair Value, Inputs, Level 3 | Private issue CMO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available for sale | $ 113 | $ 154 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements Using Level 3 Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue from Contract with Customer, Including Assessed Tax | Revenue from Contract with Customer, Including Assessed Tax |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax | Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 2,038 | $ 2,469 |
Total gains or losses (realized/unrealized) Included in earnings | (113) | 51 |
Total gains or losses (realized/unrealized) Included in other comprehensive income (loss) | (10) | 5 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (399) | (487) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | 1,516 | 2,038 |
Private issue CMO | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 154 | 197 |
Total gains or losses (realized/unrealized) Included in earnings | 0 | 0 |
Total gains or losses (realized/unrealized) Included in other comprehensive income (loss) | (7) | 9 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (34) | (52) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | 113 | 154 |
Loans Held For Investment, at Fair Value [Member] | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 1,874 | 2,258 |
Total gains or losses (realized/unrealized) Included in earnings | (113) | 51 |
Total gains or losses (realized/unrealized) Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (365) | (435) |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | 1,396 | 1,874 |
Interest-Only Strips | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 10 | 14 |
Total gains or losses (realized/unrealized) Included in earnings | 0 | 0 |
Total gains or losses (realized/unrealized) Included in other comprehensive income (loss) | (3) | (4) |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 7 | $ 10 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Corporations assets measured at fair value at the dates indicated on a nonrecurring basis (Details) - Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-performing loans | $ 1,423 | $ 8,646 |
Mortgage servicing assets | 168 | 208 |
Total assets | 1,591 | 8,854 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-performing loans | 0 | 0 |
Mortgage servicing assets | 0 | 0 |
Total assets | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-performing loans | 515 | 899 |
Mortgage servicing assets | 0 | |
Total assets | 515 | 899 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-performing loans | 908 | 7,747 |
Mortgage servicing assets | 168 | 208 |
Total assets | $ 1,076 | $ 7,955 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Valuation techniques and inputs used (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Private issue CMO | Market comparable pricing | Comparability adjustment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 0.96% |
Fair Value, Inputs, Level 3 | Private issue CMO | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 113 |
Fair Value, Inputs, Level 3 | Private issue CMO | Market comparable pricing | Comparability adjustment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Increase |
Fair Value, Inputs, Level 3 | Loans Held For Investment, at Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 1,396 |
Fair Value, Inputs, Level 3 | Loans Held For Investment, at Fair Value [Member] | Relative value analysis | Broker quotes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Increase |
Fair Value, Inputs, Level 3 | Loans Held For Investment, at Fair Value [Member] | Relative value analysis | Credit risk factors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Fair Value, Inputs, Level 3 | Loans Held For Investment, at Fair Value [Member] | Minimum | Relative value analysis | Broker quotes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 91.10% |
Fair Value, Inputs, Level 3 | Loans Held For Investment, at Fair Value [Member] | Minimum | Relative value analysis | Credit risk factors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 1.20% |
Fair Value, Inputs, Level 3 | Loans Held For Investment, at Fair Value [Member] | Maximum | Relative value analysis | Broker quotes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 98% |
Fair Value, Inputs, Level 3 | Loans Held For Investment, at Fair Value [Member] | Maximum | Relative value analysis | Credit risk factors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 100% |
Fair Value, Inputs, Level 3 | Loans Held For Investment, at Fair Value [Member] | Weighted Average | Relative value analysis | Broker quotes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 93.40% |
Fair Value, Inputs, Level 3 | Loans Held For Investment, at Fair Value [Member] | Weighted Average | Relative value analysis | Credit risk factors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 4.60% |
Fair Value, Inputs, Level 3 | Non-performing loans | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 722 |
Fair Value, Inputs, Level 3 | Non-performing loans | Relative value analysis | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 186 |
Fair Value, Inputs, Level 3 | Non-performing loans | Relative value analysis | Credit risk factors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Fair Value, Inputs, Level 3 | Non-performing loans | Discounted cash flow | Default rates. | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Fair Value, Inputs, Level 3 | Non-performing loans | Minimum | Relative value analysis | Credit risk factors | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 20% |
Fair Value, Inputs, Level 3 | Non-performing loans | Minimum | Discounted cash flow | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 5% |
Fair Value, Inputs, Level 3 | Mortgage servicing assets | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 168 |
Fair Value, Inputs, Level 3 | Mortgage servicing assets | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Fair Value, Inputs, Level 3 | Mortgage servicing assets | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Fair Value, Inputs, Level 3 | Mortgage servicing assets | Minimum | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 4.80% |
Fair Value, Inputs, Level 3 | Mortgage servicing assets | Minimum | Discounted cash flow | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 9% |
Fair Value, Inputs, Level 3 | Mortgage servicing assets | Maximum | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 60% |
Fair Value, Inputs, Level 3 | Mortgage servicing assets | Maximum | Discounted cash flow | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 10.50% |
Fair Value, Inputs, Level 3 | Mortgage servicing assets | Weighted Average | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 10.90% |
Fair Value, Inputs, Level 3 | Mortgage servicing assets | Weighted Average | Discounted cash flow | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 9% |
Fair Value, Inputs, Level 3 | Interest-Only Strips | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets, Fair Value Disclosure | $ 7 |
Fair Value, Inputs, Level 3 | Interest-Only Strips | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Fair Value, Inputs, Level 3 | Interest-Only Strips | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impact to valuation from an increase in inputs on assets | Decrease |
Fair Value, Inputs, Level 3 | Interest-Only Strips | Discounted cash flow | Discount rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 9% |
Fair Value, Inputs, Level 3 | Interest-Only Strips | Minimum | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 9.50% |
Fair Value, Inputs, Level 3 | Interest-Only Strips | Maximum | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 32% |
Fair Value, Inputs, Level 3 | Interest-Only Strips | Weighted Average | Discounted cash flow | Prepayment speed (CPR) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Fair Value Measurement Input | 30.60% |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Carrying amount and fair value of the Corporations other financial instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities - held to maturity, at cost | $ 185,745 | $ 223,306 |
Investment securities - held to maturity | 185,745 | 223,306 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for investment, not recorded at fair value | 0 | 0 |
Investment securities - held to maturity | 0 | 0 |
FHLB - San Francisco stock | 0 | 0 |
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for investment, not recorded at fair value | 0 | 0 |
Investment securities - held to maturity | 171,724 | 224,721 |
FHLB - San Francisco stock | 8,239 | 8,155 |
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for investment, not recorded at fair value | 892,339 | 848,727 |
Investment securities - held to maturity | 0 | 0 |
FHLB - San Francisco stock | 0 | 0 |
Deposits | 917,220 | 904,673 |
Borrowings | 84,299 | 104,526 |
Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for investment, not recorded at fair value | 938,596 | 849,086 |
Investment securities - held to maturity | 185,745 | 223,306 |
FHLB - San Francisco stock | 8,239 | 8,155 |
Deposits | 955,504 | 937,973 |
Borrowings | 85,000 | 100,983 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for investment, not recorded at fair value | 892,339 | 848,727 |
Investment securities - held to maturity | 171,724 | 224,721 |
FHLB - San Francisco stock | 8,239 | 8,155 |
Deposits | 917,220 | 904,673 |
Borrowings | $ 84,299 | $ 104,526 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Loan servicing and other fees | $ 1,056 | $ 1,170 |
Other | 719 | 551 |
Total non-interest income | 4,716 | 4,573 |
Deposit account fees | ||
Revenue within the scope of ASC 606 | 1,302 | 1,247 |
Card and processing fees | ||
Revenue within the scope of ASC 606 | 1,639 | 1,605 |
BOLI | ||
Other | 188 | 191 |
Gain (Loss) on Sale of Loans and Leases | $ 40 | $ 103 |
Holding Company Condensed Fin_3
Holding Company Condensed Financial Information - Financial Condition (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Assets | |||
Cash and cash equivalents | $ 23,414 | $ 70,270 | |
Assets | 1,187,038 | 1,183,596 | |
Liabilities and Stockholders' Equity | |||
Stockholders' equity | 128,650 | 127,280 | $ 123,976 |
Liabilities and Stockholders' Equity | 1,187,038 | 1,183,596 | |
Provident Financial Holding | |||
Assets | |||
Cash and cash equivalents | 3,751 | 5,576 | $ 6,842 |
Investment in subsidiary | 124,875 | 121,696 | |
Other assets | 61 | 60 | |
Assets | 128,687 | 127,332 | |
Liabilities and Stockholders' Equity | |||
Other liabilities | 37 | 52 | |
Stockholders' equity | 128,650 | 127,280 | |
Liabilities and Stockholders' Equity | $ 128,687 | $ 127,332 |
Holding Company Condensed Fin_4
Holding Company Condensed Financial Information - Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Financial Statements, Captions | ||
Income tax benefit | $ (3,765) | $ (2,626) |
Net income | 9,093 | 7,561 |
Provident Financial Holding | ||
Condensed Financial Statements, Captions | ||
Dividend from the Bank | 7,500 | 5,000 |
Interest and other income | 3 | 5 |
Total income | 7,503 | 5,005 |
General and administrative expenses | 1,219 | 1,117 |
Earnings before income taxes and equity in undistributed earnings of the Bank | 6,284 | 3,888 |
Income tax benefit | (358) | (328) |
Earnings before equity in undistributed earnings of the Bank | 6,642 | 4,216 |
Equity in undistributed earnings of the Bank | 2,451 | 3,345 |
Net income | $ 9,093 | $ 7,561 |
Holding Company Condensed Fin_5
Holding Company Condensed Financial Information - Cashflows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 9,093 | $ 7,561 |
Net cash provided by operating activities | 11,793 | 11,573 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 981 | |
Treasury stock purchases | (4,305) | (2,336) |
Cash dividends | (4,146) | (4,173) |
Net cash used for financing activities | (6,903) | (1,465) |
Net decrease in cash during the year | (46,856) | (45,764) |
Cash and cash equivalents at beginning of year | 70,270 | |
Cash and cash equivalents at end of year | 23,414 | 70,270 |
Provident Financial Holding | ||
Cash flows from operating activities: | ||
Net income | 9,093 | 7,561 |
Equity in undistributed earnings of the Bank | (2,451) | (3,345) |
(Increase) decrease in other assets | (1) | 48 |
Decrease in other liabilities | (15) | (2) |
Net cash provided by operating activities | 6,626 | 4,262 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 0 | 981 |
Treasury stock purchases | (4,305) | (2,336) |
Cash dividends | (4,146) | (4,173) |
Net cash used for financing activities | (8,451) | (5,528) |
Net decrease in cash during the year | (1,825) | (1,266) |
Cash and cash equivalents at beginning of year | 5,576 | 6,842 |
Cash and cash equivalents at end of year | $ 3,751 | $ 5,576 |
Government Assistance (Details)
Government Assistance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | |
Government Assistance | ||||
Maximum employee retention tax credit per eligible employee | $ 7,000 | |||
Percentage of qualified wages for computing credit | 70% | |||
Maximum qualified wages for computing credit | $ 10,000 | |||
Maximum average full-time employees for eligibility of credit | 500 | |||
Employee retention tax credit recognized | $ 1,200 | $ 2,400 | ||
Outstanding ERTC | $ 2,400 | $ 2,400 | $ 3,600 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent event. | Jul. 28, 2022 $ / shares |
Subsequent Event [Line Items] | |
Dividends declared date | Jul. 28, 2022 |
Quarterly cash dividend declared, common stock | $ 0.14 |
Dividend, date of record | Aug. 18, 2022 |
Dividends payable, date | Sep. 08, 2022 |