CENTRAL PLAINS BANCSHARES, INC., 10-Q filed on 9/27/2023
Quarterly Report
v3.23.3
Document and Entity Information - shares
3 Months Ended
Jun. 30, 2023
Sep. 22, 2023
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2023  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Title of 12(b) Security Common Stock  
No Trading Symbol Flag true  
Entity Registrant Name Central Plains Bancshares, Inc.  
Entity Central Index Key 0001979332  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Current Fiscal Year End Date --03-31  
Entity Filer Category Non-accelerated Filer  
Entity Shell Company false  
Entity Small Business true  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Common Stock, Shares Outstanding   0
Entity File Number 333-272636  
Entity Incorporation, State or Country Code MD  
Entity Tax Identification Number 93-2239246  
Entity Address, Address Line One 221 South Locust Street  
Entity Address, City or Town Grand Island  
Entity Address, State or Province NE  
Entity Address, Postal Zip Code 68801  
City Area Code 308  
Local Phone Number 382-4000  
Document Quarterly Report true  
Document Transition Report false  
v3.23.3
Consolidated Statements Of Financial Condition - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Assets    
Cash and due from banks $ 8,833 $ 7,915
Interest-bearing deposits in other banks 7,842 8,648
Total cash and cash equivalents 16,675 16,563
Investment securities - Available for sale 58,636 57,842
Investment securities - Held to maturity 381 422
Loans - Net of allowance of $5,699 and $5,412, respectively 359,740 348,337
Accrued interest receivable 1,794 1,727
Federal Home Loan Bank stock - At cost 663 563
Premises and equipment - Net 4,032 4,104
Deferred income taxes 3,392 3,292
Mortgage servicing rights 420 434
Other assets 4,674 4,508
Total assets 450,407 437,792
Liabilities and Equity    
Noninterest bearing deposits 83,759 73,248
Interest bearing deposits 319,470 317,704
Total deposits 403,229 390,952
Pension liability 2,271 2,310
Advances from borrowers for taxes and insurance 1,321 1,719
Accrued interest payable 1,055 668
Accounts payable, accrued expenses and other liabilities 3,827 3,477
Total liabilities 411,703 399,126
Income tax benefit for other comprehensive income (5,613) (5,107)
Retained earnings 44,317 43,773
Total equity 38,704 38,666
Total liabilities and equity $ 450,407 $ 437,792
v3.23.3
Consolidated Statements Of Financial Condition (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Statement of Financial Position [Abstract]        
Allowance for loan $ 5,699 $ 5,412 $ 5,080 $ 4,928
v3.23.3
Consolidated Statements of Income (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Interest and dividend income    
Loans-including fees $ 4,320 $ 3,222
Investment securities 388 344
Federal Home Loan Bank stock 7 2
Federal funds sold 51 7
Total interest and dividend income 4,766 3,575
Interest expense:    
Deposits 1,362 268
Borrowings under FHLB advances 69 20
Total interest expense 1,431 288
Net interest income before provision (credit) for credit losses 3,335 3,287
Provision (credit) for credit losses (27) 152
Net interest income after provision (credit) for credit losses 3,362 3,135
Noninterest income:    
Servicing fees on loans 86 75
Service charges on deposit accounts 187 154
Interchange income 305 288
Gain on sale of loans 41 17
Gain from real estate owned and other repossessed assets, net 1  
Other 32 32
Total noninterest income 652 566
Noninterest expense:    
Salaries and employee benefits 1,564 1,553
Occupancy and equipment 242 238
Data processing 443 479
Federal deposit insurance premiums 81 40
Debit card processing 60 56
Advertising 68 74
Other general and administrative expenses 378 395
Total noninterest expense 2,836 2,835
Income before income tax expense 1,178 866
Income tax expense 232 191
Net income $ 946 $ 675
v3.23.3
Consolidated Statements Of Comprehensive Income (Loss) - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Statement of Comprehensive Income [Abstract]    
Net income $ 946 $ 675
Other comprehensive (loss):    
Unrealized holding losses arising during the period on available-for-sale securities (642) (2,085)
Minimum pension liability adjustment   20
Other comprehensive loss, before tax (642) (2,065)
Income tax benefit for other comprehensive income 136 435
Total other comprehensive loss - net of tax (506) (1,630)
Comprehensive income (loss) $ 440 $ (955)
v3.23.3
Consolidated Statements Of Changes In Equity - USD ($)
$ in Thousands
Total
Revision of Prior Period, Accounting Standards Update, Adjustment
Accumulated Other Comprehensive Loss
Retained Earnings
Retained Earnings
Revision of Prior Period, Accounting Standards Update, Adjustment
Beginning balance at Mar. 31, 2022 $ 38,402   $ (3,725) $ 42,127  
Net income 675     675  
Other comprehensive loss - net of tax (1,630)   (1,630)    
Ending balance at Jun. 30, 2022 37,447   (5,355) 42,802  
Beginning balance at Mar. 31, 2023 38,666 $ (402) (5,107) 43,773 $ (402)
Accounting Standards Update [Extensible Enumeration]   ASU 2016-13     ASU 2016-13
Net income 946     946  
Other comprehensive loss - net of tax (506)   (506)    
Ending balance at Jun. 30, 2023 $ 38,704   $ (5,613) $ 44,317  
v3.23.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities    
Net income $ 946 $ 675
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 127 120
Gain on sale of loans (41) (17)
Amortization of premium and accretion of discount on securities 51 94
Deferred income tax (benefit) expense 7 (434)
Provision (credit) for credit losses (27) 152
Origination of loans held for sale (2,386) (980)
Proceeds from sales of loans held for sale 2,428 997
Contributions to pension plan 100 150
Change in assets and liabilities:    
Accrued interest receivable (67) 78
Mortgage servicing rights 14 35
Other assets (177) 299
Accrued interest payable 387 (29)
Accounts payable, accrued expenses and other liabilities (201) (753)
Net cash provided by operating activities 1,161 387
Cash flows from investing activities    
Net change in loans (11,372) (17,188)
Purchase of investment securities available for sale (3,799)  
Principal paydowns from investment securities available for sale 2,349 4,160
Principal paydowns from investment securities held to maturity 41 35
Purchase of Federal Home Loan Bank stock (100) (177)
Purchase of premises and equipment (47) (47)
Net cash used in investing activities (12,928) (13,217)
Cash flows from financing activities    
Net change in deposits 12,277 (12,806)
Net change in advances from borrowers for taxes and insurance (398) (360)
Net cash provided by financing activities 11,879 1,834
Net increase (decrease) in cash and cash equivalents 112 (10,996)
Cash and cash equivalents - beginning of period 16,563 18,979
Cash and cash equivalents - end of period 16,675 7,983
Supplemental disclosures of cash flow information:    
Cash paid for taxes   75
Cash paid for interest $ 1,044 215
Federal Home Loan Bank Advances [Member]    
Cash flows from financing activities    
Proceeds from short-term FHLB advances   $ 15,000
v3.23.3
Summary of Significant Accounting Policies
3 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business—Home Federal Savings and Loan Association of Grand Island d.b.a. Home Federal Bank (the “Association”) is a federally chartered mutual savings and loan association whose primary business is providing mortgage, consumer, commercial real estate, and commercial loans in the Grand Island, Nebraska area, with additional lending opportunities through the Association’s participation network of banks in Nebraska and other states, and acquiring consumer and commercial deposits to fund these investments.

Basis of Presentation—The consolidated financial statements include the accounts of the Association and First Service Corporation, a wholly owned subsidiary. All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (GAAP) as codified in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC).

Central Plains Bancshares, Inc., a Maryland corporation (the “Company”), was formed to serve as the stock holding company for the Association as part of the Association's mutual-to-stock conversion. As of June 30, 2023, the conversion had not been completed, and, as of that date, the Company had no assets or liabilities, and had not conducted any business other than that of an organizational nature. After the conversion and offering are completed, we will be organized as a fully public stock holding company, with 100% of the common stock being held by the public. Accordingly, the financial statements and other information included in Part I of this Quarterly Report is for the Association.

In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures necessary for the fair presentation of the accompanying consolidated financial statements have been included. The results of operations for any interim periods are not necessarily indicative of the results which may be expected for the entire year or any other period.

Use of Estimates—In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to change in the near term relate to the determination of the allowance for loan losses, the determination of the pension liability, as well as the fair value measurements of investment securities. As with any estimate, actual results could differ from those estimates.

Accounting Developments—In June 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-13,Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” also known as Current Expected Credit Losses, or CECL. ASU 2016-13 was issued to provide financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date to enhance the decision making process. The CECL model utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity securities, and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. For available for-sale securities where fair value is less than cost, credit-related impairment, if any, will be recognized in an allowance for credit losses and adjusted each period for changes in expected credit risk. This model replaces the multiple existing impairment models, which generally require that a loss be incurred before it is recognized.

The Association adopted ASC 326 and all related subsequent amendments thereto effective April 1, 2023 using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The transition adjustment for the adoption of CECL resulted in an increase in the allowance for credit losses on loans of $299, which is presented as a reduction to net loans outstanding, and the establishment of an allowance for credit losses on unfunded loan commitments of $210, which is recorded within accounts payable, accrued expenses and other liabilities on the consolidated statement of financial condition. The Association recorded a net decrease to retained earnings of $402, as of April 1, 2023 for the cumulative effect of adopting CECL, which reflects the transition adjustments noted above, net of the applicable deferred tax assets recorded. Results for reporting periods beginning after April 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable accounting standards (“Incurred Loss”).

 

In March 2022, FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this update eliminate the accounting guidance and related disclosures for troubled debt restructurings (TDRs) by creditors in Subtopic 310-40, ReceivablesTroubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty and requiring an entity to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial InstrumentsCredit LossesMeasured at Amortized Cost. The Association adopted the amendments in this update on April 1, 2023, and is applying the amendments prospectively with the exception of the recognition and measurement of existing TDRs for which the entity has elected to apply a modified retrospective transition method.

Allowance for Credit Losses

The allowance for credit losses (“ACL”) is an estimate of the expected credit losses on the loans held for investment, unfunded loan commitments, held to maturity securities, and available-for-sale debt securities portfolios.

Allowance for Credit Losses on Loans—The ACL is maintained by management at a level believed adequate to absorb estimated credit losses that are expected to occur within the existing loan portfolio through their contractual terms adjusted for expected prepayments. The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans. Determination of the ACL is inherently subjective in nature since it requires significant estimates and management judgment, and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the ultimate adequacy of the ACL is dependent upon a variety of factors beyond the Association’s direct control, including, but not limited to, the performance of the loan portfolio, consideration of current economic trends, changes in interest rates and property values, estimated losses on pools of homogeneous loans based on an analysis that uses historical loss experience for prior periods that are determined to have like characteristics with the current period such as pre-recessionary, recessionary, or recovery periods, portfolio growth and concentration risk, management and staffing changes, the interpretation of loan risk classifications by regulatory authorities and other credit market factors.

The ACL methodology consists of measuring loans on a collective (pool) basis when similar risk characteristics exist. The Association has identified seven portfolio segments and measures the ACL using the Scaled CECL Allowance for Losses Estimator (“SCALE”) method. The loan portfolios are real estate – construction, real estate – commercial, real estate – residential, commercial, agriculture, other consumer and land development/sanitary improvement districts (SIDS). The SCALE method uses publicly available data from Schedule RI-C of the Call Report to derive the initial proxy expected lifetime loss rates. These proxy expected lifetime loss rates are then adjusted for Association-specific facts and circumstances to arrive at the final ACL estimate that adequately reflects the Association’s loss history and credit risk within our portfolio.

The qualitative factors applied to each loan portfolio consist of the impact of other internal and external qualitative and credit market factors as assessed by management through a detailed loan review, ACL analysis and credit discussions. These internal and external qualitative and credit market factors used include the following:

The nature and volume of the Association’s financial assets;
The existence, growth, and effect of any concentration of credit;
The volume and severity of past due financial assets, the volume of nonaccrual assets, and the volume and severity of adversely classified or graded assets;
The value of the underlying collateral for loans that are non-collateral-dependent;
The Association’s lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries;
The quality of the Association’s credit review function;
The experience, ability, and depth of the Association’s lending, investment, collection, and other relevant management and staff;
The effect of other external factors such as the regulatory, legal and technological environments; competition; and events such as natural disasters; and
Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Association operates that affect the collectability of financial assets.

The impact of the above listed internal and external qualitative and credit market risk factors is assessed within predetermined ranges to adjust the ACL totals calculated.

In addition to the pooled analysis performed for the majority of our loan and commitment balances, we also review those loans that have collateral dependency or nonperforming status which requires a specific review of that loan, per our individually analyzed CECL calculations.

Loans are charged off against the ACL when management believes the uncollectability of a loan balance is confirmed, while recoveries of amounts previously charged-off are credited to the ACL. Approved releases from previously established ACL reserves authorized under our ACL methodology also reduce the ACL. Additions to the ACL are established through the provision for credit losses on loans, which is charged to expense.

The Association’s ACL methodology is intended to reflect all loan portfolio risk, but management recognizes the inability to accurately depict all future credit losses in a current ACL estimate, as the impact of various factors cannot be fully known. Accrued interest receivable on loans is excluded from the amortized cost basis of financing receivables for the purpose of determining the allowance for credit losses.

Allowance for Credit Losses on Unfunded Loan Commitments—The Association estimates expected credit losses over the contractual period in which the Association is exposed to credit risk by a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Association. The ACL related to off-balance sheet credit exposures, which is recorded within accounts payable, accrued expenses and other liabilities on the consolidated statement of financial condition, is estimated at each balance sheet date under the CECL model, and is adjusted as determined necessary through the provision for credit losses on the consolidated statement of income. The estimate for ACL on unfunded loan commitments includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Allowance for Credit Losses on Securities Available-for-Sale—For available-for-sale debt securities in an unrealized loss position, the Association first assesses whether it intends to sell, or it is more likely than not that it will sell, the security before recovery of its amortized cost basis. If either of the aforementioned criteria exists, the Association will record an ACL related to securities available-for-sale with an offsetting entry to the provision for credit losses on securities on the income statement. If either of these criteria does not exist, the Association will evaluate the securities individually to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors, such as market interest rate fluctuations.

In evaluating securities available-for sale for potential impairment, the Association considers many factors, including the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; and its ability and intent to hold the security for a period of time sufficient for a recovery in value. The Association also considers the extent to which the securities are issued by the federal government or its agencies, and any guarantee of issued amounts by those agencies. The amount of the impairment related to other factors is recognized in other comprehensive income (loss).

Allowance for Credit Losses on Held-to Maturity Securities—The allowance for credit losses on held-to-maturity debt securities is estimated using a CECL methodology. Any expected credit loss is provided through the allowance for credit loss on held-to-maturity securities and is deducted from the amortized cost basis of the security so that the balance sheet reflects the net amount the Association expects to collect. Nearly all the Associations HTM debt securities are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Accordingly, there is a zero-credit loss expectation on these securities.

Allowance for Loan Losses (Prior to April 1, 2023)—The allowance for loan losses represents management’s estimate of probable losses inherent in the loan portfolio. Additions to the allowance are recorded in the provision for loan losses charged to expense. Charge-offs, net of recoveries, are deducted from the allowance. The allowance estimate is based on prior experience, the nature and volume of the loan portfolio, review of specific problem loans, and an evaluation of the overall portfolio quality under current economic conditions. Specific reserves for impaired loans are measured and recognized to the extent that the recorded investment of an impaired loan exceeds its value based on either the fair value of the loan’s underlying collateral less estimated costs to sell, the calculated present value of projected cash flows discounted at the contractual interest rate, or the loan’s observable fair value.

 

The Association’s allowance for loan losses consists of various methodologies to determine impairment: (a) loans individually evaluated for impairment are evaluated based upon a specific identified probable loss, and (b) loans collectively evaluated for impairment are evaluated based on historical loan loss experience for similar loans with similar characteristics, adjusted to reflect the impact of current conditions. Factors considered in determining the adjustment for current conditions include the following: (a) changes in asset quality, (b) composition and concentrations of credit risk, and (c) the impact of economic risks on the portfolio.

In determining the allowance for loan losses, management considers factors such as economic and business conditions affecting key lending areas, credit concentrations and credit quality trends. Since the evaluation of the inherent loss with respect to these factors is subject to a higher degree of uncertainty, the measurement of the overall allowance is subject to estimation risk and the amount of actual losses can vary significantly from the estimated amounts. The Association’s measurement methods incorporate comparisons between recent experience and historical rates.

Loans are generally secured by underlying real estate, business assets, personal property and personal guarantees. The amount of collateral obtained is based upon management’s evaluation of the borrower.

The Association periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR.

A loan is considered impaired when it is probable that all principal and interest amounts due will not be collected in accordance with the loan’s contractual terms. Except for TDRs, consumer loans within any class are generally not individually evaluated on a regular basis for impairment. All TDRs, regardless of the outstanding balance amount, are considered to be impaired.

The allowance established for probable losses on specific loans is based on a periodic analysis and evaluation of classified loans. Specific reserves for impaired loans are measured and recognized to the extent that the recorded investment of an impaired loan exceeds its value based on either the fair value of the loan’s underlying collateral less costs to sell, the calculated present value of projected cash flows discounted at the contractual effective interest rate or the loan’s observable fair value.

Cash and Cash Equivalents—Cash and cash equivalents include cash on hand, federal funds sold, demand deposits at other financial institutions, and short-term investments with maturities when purchased, of three months or less.

Investment Securities—Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Securities not classified as held to maturity are classified as available for sale and recorded at fair value, with unrealized gains and losses on a net-of-tax basis excluded from earnings and reported in other comprehensive income. The fair value of a security is determined based on quoted market prices. If quoted market prices are not available, fair value is determined based on quoted market prices of similar instruments or discounted cash flow models that incorporate market inputs and assumptions including discount rates, prepayment speeds, and loss rates. The Association did not have any securities classified as trading at June 30, 2023 and March 31, 2023.

Purchased premiums and discounts are amortized and accreted to the earlier of call or maturity of the related security using the effective interest method. Realized gains and losses on the sale of securities are recognized on the specific identification method in the statements of income.

For periods prior to April 1, 2023, management monitored securities for other-than-temporary-impairment (OTTI). If the Association intends to sell the security or will more likely than not be required to sell the security before recovery of the entire amortized cost basis, then an OTTI has occurred. However, even if the Association does not intend to sell the security and will not likely be required to sell the security before recovery of its entire amortized cost basis, the Association must evaluate expected cash flows to be received to determine if a credit loss has occurred. In the event of a credit loss, the credit component of the impairment is recorded as a loss in the statement of income and the non-credit component is recognized through other comprehensive income (loss).

Federal Home Loan Bank Stock—As a member of the Federal Home Loan Bank of Topeka (FHLB), the Association is required to maintain an investment in the capital stock of the FHLB. For financial reporting purposes, such stock is carried at cost, which approximates fair value, based on the redemption provisions.

Loans Held for Sale—Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Mortgage loans held for sale are generally sold with servicing rights retained. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related mortgage loan sold, which is reduced by the cost allocated to the servicing right. The Association generally locks in the sale price to the purchaser of the mortgage loan at the same time an interest rate commitment is made to the borrower.

 

Loans—Loans that management has the intent and ability to hold for the foreseeable future are stated at the amount of unpaid principal less an allowance for loan losses and any deferred fees or costs on originated loans. Interest on loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. The accrual of interest on impaired loans is discontinued when management believes that the borrower may be unable to make payments as scheduled, generally when a loan becomes contractually delinquent for three months or more. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent that cash payments are received in excess of principal due. Loan origination fees and commitment fees offset by certain direct loan origination costs are deferred and recognized over the contractual life of the loan as a yield adjustment.

Mortgage Servicing Rights—Mortgage servicing rights are established based on the allocated fair value of servicing rights retained on loans originated by the Association and subsequently sold in the secondary market. Mortgage servicing rights are amortized into servicing fees on loans on the consolidated statements of income in proportion to, and over the period of, the estimated net servicing income and are evaluated for impairment based on their fair value. Each class of separately recognized servicing assets subsequently measured using the amortization method are evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized.

Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 860-50), servicing rights resulting from the sale or securitization of loans originated by the Association are initially measured at fair value at the date of transfer. The Association has elected to subsequently measure the mortgage servicing rights using the amortization method. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment or increased obligation based on fair value at each reporting date.

Each class of separately recognized servicing assets subsequently measured using the amortization method are evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported with other noninterest expense on the income statement.

Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income.

Premises and Equipment—Office properties and equipment are carried at cost less accumulated depreciation. Depreciation is computed based on the straight-line basis over the estimated useful lives of the assets ranging from 3 to 15 years. Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Costs incurred for maintenance and repairs are expensed as incurred. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable.

Leases—Lease expense for operating and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent the Association’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. When the rate implicit in the lease is unknown, the present value of the lease payments is determined using our incremental borrowing rate based on the FHLB amortizing advance rate, adjusted for the lease term and other factors.

Revenue Recognition—Most of the Association’s revenue is not subject to Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, including net interest income, fees related to loans and loan commitments, gain on derivatives, and gain on sales of loans and securities.

 

Under ASC 606, the Association must identify the contract with a customer, identify the performance obligation(s) within the contract, determine the transaction price, allocate the transaction price to the performance obligation(s) within the contract, and recognize revenue when (or as) the performance obligation(s) are satisfied. The core principle under ASC 606 requires the Association to recognize revenue to depict the transfer of services or products to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those services or products recognized as performance obligations are satisfied. The Association generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Since performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers.

Transfer of Financial Assets—Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Association, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Association does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity.

Retirement Plans—Pension expense is the net of service and interest cost, return on plan assets, and amortization of gains and losses not immediately recognized. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service.

Interest Rate Risk—The Association is a mutual savings bank engaged principally in originating and investing in first mortgage loans, consumer loans to individuals, agricultural loans and commercial loans to businesses primarily in Grand Island, Nebraska. These loans are funded primarily with short-term liabilities that have interest rates that vary with market rates over time. The earnings of the Association are exposed to interest rate risk largely because of the mismatch between the repricing intervals of its assets and liabilities.

To reduce interest rate risk the Association has employed the strategy of selling a majority of the single family fixed-rate home loans the Association originates into the secondary market. The Association holds any adjustable-rate single family home loans in their portfolio. In addition, the commercial loans the Association originates and maintains in its portfolio are either tied to some variant of Wall Street Journal Prime (WSJP) and adjust as WSJP adjusts or they contain shorter term call dates (typically three or five years) when amortized over longer periods of time. The consumer portfolio has three-to-five-year amortized terms which mitigate long term interest rate exposure in this portfolio.

Income Taxes—The Association and its subsidiary file consolidated income tax returns. Income taxes are accounted for using an asset and liability method. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to operating loss and tax credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using the currently enacted tax rates expected to apply in the year in which those temporary differences are expected to be recovered or settled. If needed, a valuation allowance is recorded to reduce deferred tax assets to the amount expected to be realized. The Association recognizes tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon settlement. A liability for unrecognized tax benefits is recorded for any tax benefits claimed in tax returns that do not meet these recognition and measurement standards. The Association recognizes both interest and penalties (if applicable) as a component of income tax expense.

Comprehensive Income—Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and minimum pension liability adjustments, are reported as a separate component of the equity section of the consolidated statements of financial condition; such items, along with net income, are components of comprehensive income, net of tax.

Financial Instruments and Loan Commitments—Financial instruments include off-balance-sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Instruments, such as standby letters of credit, that are considered financial guarantees are recorded at fair value.

v3.23.3
Investment Securities
3 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

Note 2 - Investment SECURITIES

The following is a summary of investment securities at June 30, 2023 and March 31, 2023:

 

(dollars in thousands)

 

June 30, 2023

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

Available-for-Sale

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

FHLMC bonds

 

$

26,652

 

 

$

5

 

 

$

(2,432

)

 

$

24,225

 

GNMA bonds

 

 

3,964

 

 

 

 

 

 

(143

)

 

 

3,821

 

FNMA bonds

 

 

25,641

 

 

 

10

 

 

 

(2,622

)

 

 

23,029

 

Municipal bonds

 

 

8,993

 

 

 

 

 

 

(1,432

)

 

 

7,561

 

Total

 

$

65,250

 

 

$

15

 

 

$

(6,629

)

 

$

58,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-Maturity

 

 

 

 

 

 

 

 

 

 

 

 

FHLMC bonds

 

$

111

 

 

$

 

 

$

(2

)

 

$

109

 

GNMA bonds

 

 

71

 

 

 

 

 

 

(3

)

 

 

68

 

FNMA bonds

 

 

199

 

 

 

 

 

 

(3

)

 

 

196

 

Total

 

$

381

 

 

$

 

 

$

(8

)

 

$

373

 

 

(dollars in thousands)

 

March 31, 2023

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

Available-for-Sale

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

FHLMC bonds

 

$

25,446

 

 

$

13

 

 

$

(2,203

)

 

$

23,256

 

GNMA bonds

 

 

2,648

 

 

 

 

 

 

(58

)

 

 

2,590

 

FNMA bonds

 

 

26,726

 

 

 

17

 

 

 

(2,453

)

 

 

24,290

 

Municipal bonds

 

 

8,994

 

 

 

1

 

 

 

(1,289

)

 

 

7,706

 

Total

 

$

63,814

 

 

$

31

 

 

$

(6,003

)

 

$

57,842

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-Maturity

 

 

 

 

 

 

 

 

 

 

 

 

FHLMC bonds

 

$

116

 

 

$

 

 

$

(2

)

 

$

114

 

GNMA bonds

 

 

74

 

 

 

 

 

 

(1

)

 

 

73

 

FNMA bonds

 

 

232

 

 

 

1

 

 

 

(4

)

 

 

229

 

Total

 

$

422

 

 

$

1

 

 

$

(7

)

 

$

416

 

 

The fair value and gross unrealized losses on the Association’s available-for-sale investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2023 and March 31, 2023, are as follows:

 

(dollars in thousands)

 

Less than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

June 30, 2023

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

Available-for-Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHLMC bonds

 

$

4,468

 

 

$

(70

)

 

$

18,667

 

 

$

(2,362

)

 

$

23,135

 

 

$

(2,432

)

GNMA bonds

 

 

1,723

 

 

 

(50

)

 

 

2,098

 

 

 

(93

)

 

 

3,821

 

 

 

(143

)

FNMA bonds

 

 

3,113

 

 

 

(24

)

 

 

18,400

 

 

 

(2,598

)

 

 

21,513

 

 

 

(2,622

)

Municipal bonds

 

 

1,707

 

 

 

(11

)

 

 

5,854

 

 

 

(1,421

)

 

 

7,561

 

 

 

(1,432

)

Total

 

$

11,011

 

 

$

(155

)

 

$

45,019

 

 

$

(6,474

)

 

$

56,030

 

 

$

(6,629

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

March 31, 2023

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

Available-for-Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHLMC bonds

 

$

4,714

 

 

$

(133

)

 

$

16,482

 

 

$

(2,070

)

 

$

21,196

 

 

$

(2,203

)

GNMA bonds

 

 

2,576

 

 

 

(57

)

 

 

14

 

 

 

(1

)

 

 

2,590

 

 

 

(58

)

FNMA bonds

 

 

4,315

 

 

 

(78

)

 

 

17,027

 

 

 

(2,375

)

 

 

21,342

 

 

 

(2,453

)

Municipal bonds

 

 

 

 

 

 

 

 

5,688

 

 

 

(1,289

)

 

 

5,688

 

 

 

(1,289

)

Total

 

$

11,605

 

 

$

(268

)

 

$

39,211

 

 

$

(5,735

)

 

$

50,816

 

 

$

(6,003

)

 

The unrealized losses at June 30, 2023 are related to mortgage-backed securities and municipal bonds. Government-sponsored enterprises, such as the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association, have an implied guarantee by the U.S. government. At June 30, 2023, all of the mortgage-backed securities held by the Association were issued by U.S. government-sponsored entities and agencies. The issuers continue to make timely principal and interest payments on the mortgage-backed securities.

Unrealized losses on municipal bonds have not been recognized into income because the issuers’ bonds are high credit quality, the Association does not intend to sell and it is likely that the Association will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity.

At June 30, 2023 and March 31, 2023, investment securities with amortized cost of $34,450, and $34,149 , respectively, and estimated fair value of $32,576 and $31,935, respectively, were pledged to secure public, consumer, and commercial deposits.

The amortized cost and fair values of available for sale investment securities as of June 30, 2023 by contractual maturity, are shown below:

 

(dollars in thousands)

 

Available for Sale

 

 

 

Amortized Cost

 

 

Fair Value

 

Maturity

 

 

 

 

 

 

Due less than one year

 

$

60

 

 

$

59

 

Due after one year through five years

 

 

2,443

 

 

 

2,345

 

Due after five years through ten years

 

 

1,803

 

 

 

1,565

 

Due after ten years

 

 

4,687

 

 

 

3,592

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

56,257

 

 

 

51,075

 

Total

 

$

65,250

 

 

$

58,636

 

 

The Association had no sales of available for sale investment securities for the three months ended June 30, 2023 and 2022.

v3.23.3
Loans and Allowance for Credit Losses
3 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Loans and Allowance for Credit Losses

Note 3 - LOANS AND ALLOWANCE FOR Credit LOSSES

Accounting Standards Adopted in 2023

In conjunction with the adoption of ASC 326, the Association made certain loan portfolio segment reclassifications to conform to the new allowance for credit losses methodology. Loans and these related reclassifications, are summarized as follows at June 30, 2023 and March 31, 2023:

 

(dollars in thousands)

 

 

 

 

Post Adoption

 

 

The Effect

 

 

Pre Adoption

 

 

 

June 30, 2023

 

 

March 31, 2023

 

 

of Adoption

 

 

March 31, 2023

 

 

 

 

 

Real Estate - Construction

 

$

20,492

 

 

$

19,301

 

 

$

19,301

 

 

$

 

Non-1-4 Family Construction & Land Development

 

 

 

 

 

 

 

 

(23,644

)

 

 

23,644

 

Real Estate - Commercial

 

 

105,211

 

 

 

102,446

 

 

 

 

 

 

102,446

 

Real Estate - Residential

 

 

148,937

 

 

 

148,486

 

 

 

148,486

 

 

 

 

1-4 Family Residential

 

 

 

 

 

 

 

 

(119,610

)

 

 

119,610

 

Multi-Family Residential

 

 

 

 

 

 

 

 

(34,296

)

 

 

34,296

 

Commercial Non-Real Estate

 

 

29,860

 

 

 

30,101

 

 

 

 

 

 

30,101

 

Agriculture

 

 

19,541

 

 

 

18,166

 

 

 

18,166

 

 

 

 

Agriculture Real Estate

 

 

 

 

 

 

 

 

(9,245

)

 

 

9,245

 

Agriculture Non-Real Estate

 

 

 

 

 

 

 

 

(8,921

)

 

 

8,921

 

Consumer

 

 

25,903

 

 

 

19,956

 

 

 

19,956

 

 

 

 

Consumer Auto

 

 

 

 

 

 

 

 

(5,622

)

 

 

5,622

 

Consumer Other

 

 

 

 

 

 

 

 

(14,334

)

 

 

14,334

 

Land Development and SIDs*

 

 

15,440

 

 

 

15,231

 

 

 

15,231

 

 

 

 

Sanitary & Improvement Districts

 

 

 

 

 

 

 

 

(5,468

)

 

 

5,468

 

Total Loans

 

 

365,384

 

 

 

353,687

 

 

 

 

 

 

353,687

 

Allowance for credit losses

 

 

(5,699

)

 

 

(5,711

)

 

 

(299

)

 

 

(5,412

)

Net deferred orig. costs & fees

 

 

55

 

 

 

62

 

 

 

 

 

 

62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans—net

 

$

359,740

 

 

$

348,038

 

 

$

(299

)

 

$

348,337

 

*SIDs = Sanitary & Improvement Districts

 

 

 

 

 

 

 

 

 

 

 

 

 

Related Party Loans: In the normal course of business, loans are made to directors and officers of the Association. Loans to Association directors and key officers outstanding as of June 30, 2023 and March 31, 2023 were $75 and $76, respectively. Additionally, the Association had loans totaling $666 and $679 as of June 30, 2023 and March 31, 2023 to related parties that were originated by the Association, sold to Federal Home Loan Mortgage Company and are serviced by the Association.

Changes in the allowance for the three months ended June 30, 2023 and 2022 are as follows:

 

(dollars in thousands)

 

Three Months Ended June 30, 2023

 

 

 

Beginning

 

 

Impact of

 

 

Provision for

 

 

 

 

 

 

 

 

Ending

 

 

 

Allowance

 

 

ASC326

 

 

(Recovery of)

 

 

Loans

 

 

 

 

 

Allowance

 

 

 

Balance

 

 

Adoption

 

 

Credit Losses

 

 

Charged off

 

 

Recoveries

 

 

Balance

 

Real Estate - Construction

 

$

334

 

 

$

28

 

 

$

22

 

 

$

 

 

$

 

 

$

384

 

Real Estate - Commercial

 

 

2,048

 

 

 

(904

)

 

 

56

 

 

 

 

 

 

 

 

 

1,200

 

Real Estate - Residential

 

 

1,286

 

 

 

775

 

 

 

(95

)

 

 

 

 

 

 

 

 

1,966

 

Commercial Non-Real Estate

 

 

915

 

 

 

450

 

 

 

(122

)

 

 

 

 

 

18

 

 

 

1,261

 

Agricultural

 

 

484

 

 

 

(255

)

 

 

17

 

 

 

 

 

 

 

 

 

246

 

Other Consumer

 

 

157

 

 

 

138

 

 

 

88

 

 

 

(1

)

 

 

1

 

 

 

383

 

Land Development and SIDs

 

 

188

 

 

 

67

 

 

 

3

 

 

 

 

 

 

1

 

 

 

259

 

Total

 

$

5,412

 

 

$

299

 

 

$

(31

)

 

$

(1

)

 

$

20

 

 

$

5,699

 

 

 

(dollars in thousands)

 

Three Months Ended June 30, 2022

 

 

 

Beginning

 

 

Provision for

 

 

 

 

 

 

 

 

Ending

 

 

 

Allowance

 

 

(Recovery of)

 

 

Loans

 

 

 

 

 

Allowance

 

 

 

Balance

 

 

Loan Losses

 

 

Charged off

 

 

Recoveries

 

 

Balance

 

1-4 Family Residential

 

$

636

 

 

$

(7

)

 

$

 

 

$

 

 

$

629

 

Multi Family Residential

 

 

481

 

 

 

27

 

 

 

 

 

 

 

 

 

508

 

Commercial Real Estate

 

 

1,845

 

 

 

45

 

 

 

 

 

 

 

 

 

1,890

 

Agricultural RE

 

 

213

 

 

 

 

 

 

 

 

 

 

 

 

213

 

Commercial Non-RE

 

 

930

 

 

 

39

 

 

 

 

 

 

 

 

 

969

 

Agricultural Non-RE

 

 

281

 

 

 

 

 

 

 

 

 

 

 

 

281

 

SIDS

 

 

50

 

 

 

(10

)

 

 

 

 

 

 

 

 

40

 

Consumer Auto

 

 

64

 

 

 

(1

)

 

 

 

 

 

 

 

 

63

 

Consumer Other

 

 

71

 

 

 

34

 

 

 

 

 

 

 

 

 

105

 

Non 1-4 Family Construction and Land Development

 

 

357

 

 

 

25

 

 

 

 

 

 

 

 

 

382

 

Total

 

$

4,928

 

 

$

152

 

 

$

 

 

$

 

 

$

5,080

 

 

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segments and based on impairment method as of March 31, 2023.

 

(dollars in thousands)

 

Year Ended March 31, 2023

 

 

 

Indivdually

 

 

Collectively

 

 

Ending

 

 

 

Evaluated for

 

 

Evaluated For

 

 

Allowance

 

Ending allowance balance attributed to loans:

 

Impairment

 

 

Impairment

 

 

Balance

 

1-4 Family Residential

 

$

193

 

 

$

493

 

 

$

686

 

Multi Family Residential

 

 

 

 

 

670

 

 

 

670

 

Commercial Real Estate

 

 

 

 

 

2,048

 

 

 

2,048

 

Agricultural RE

 

 

 

 

 

203

 

 

 

203

 

Commercial Non-RE

 

 

28

 

 

 

887

 

 

 

915

 

Agricultural Non-RE

 

 

 

 

 

281

 

 

 

281

 

SIDS

 

 

 

 

 

50

 

 

 

50

 

Consumer Auto

 

 

 

 

 

44

 

 

 

44

 

Consumer Other

 

 

 

 

 

113

 

 

 

113

 

Non 1-4 Family Construction and Land Development

 

 

 

 

 

402

 

 

 

402

 

Total

 

$

221

 

 

$

5,191

 

 

$

5,412

 

 

(dollars in thousands)

 

Year Ended March 31, 2023

 

 

 

Indivdually

 

 

Collectively

 

 

 

 

 

 

Evaluated for

 

 

Evaluated For

 

 

Total

 

Loans:

 

Impairment

 

 

Impairment

 

 

Loans

 

1-4 Family Residential

 

$

338

 

 

$

119,272

 

 

$

119,610

 

Multi Family Residential

 

 

 

 

 

34,296

 

 

 

34,296

 

Commercial Real Estate

 

 

483

 

 

 

101,963

 

 

 

102,446

 

Agricultural RE

 

 

 

 

 

9,245

 

 

 

9,245

 

Commercial Non-RE

 

 

29

 

 

 

30,072

 

 

 

30,101

 

Agricultural Non-RE

 

 

 

 

 

8,921

 

 

 

8,921

 

SIDS

 

 

 

 

 

5,468

 

 

 

5,468

 

Consumer Auto

 

 

 

 

 

5,622

 

 

 

5,622

 

Consumer Other

 

 

 

 

 

14,334

 

 

 

14,334

 

Non 1-4 Family Construction and Land Development

 

 

 

 

 

23,644

 

 

 

23,644

 

Total

 

$

850

 

 

$

352,837

 

 

$

353,687

 

 

 

The Association’s impaired loans at March 31, 2023, were as follows:

 

(dollars in thousands)

 

 

 

 

Unpaid

 

 

 

 

 

Average

 

 

 

Recorded

 

 

Principal

 

 

Specific

 

 

Investment in

 

 

 

Balance

 

 

Balance

 

 

Allowance

 

 

Impaired Loans

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

1–4 Family Residential

 

$

 

 

$

 

 

$

 

 

$

 

Multi-Family Residential

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate

 

 

483

 

 

 

605

 

 

 

 

 

 

516

 

Agriculture Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Non-Real Estate

 

 

1

 

 

 

103

 

 

 

 

 

 

6

 

Agriculture Non-Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

Sanitary & Improvement Districts

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Auto

 

 

 

 

 

3

 

 

 

 

 

 

 

Consumer Other

 

 

 

 

 

 

 

 

 

 

 

 

Non 1–4 Family Construction and Land Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

1–4 Family Residential

 

 

338

 

 

 

366

 

 

 

193

 

 

 

303

 

Multi-family Residential

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

42

 

Agriculture Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Non-Real Estate

 

 

28

 

 

 

43

 

 

 

28

 

 

 

35

 

Agriculture Non-Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Auto

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Other

 

 

 

 

 

 

 

 

 

 

 

2

 

Non 1–4 Family Construction and Land Development

 

 

 

 

 

 

 

 

 

 

 

 

Total impaired loans

 

$

850

 

 

$

1,120

 

 

$

221

 

 

$

904

 

 

Collateral dependent loans individually evaluated for purposes of the ACL by collateral type were as follows at June 30, 2023:

 

(dollars in thousands)

 

Real Estate

 

 

Other

 

Portfolio Segment

 

 

 

 

 

 

Real Estate - Construction

 

$

 

 

$

 

Real Estate - Commercial

 

 

470

 

 

 

 

Real Estate - Residential

 

 

110

 

 

 

 

Commercial Non-RE

 

 

 

 

 

26

 

Agricultural

 

 

 

 

 

 

Other Consumer

 

 

 

 

 

 

Land Development and SIDs

 

 

 

 

 

 

Total impaired loans

 

$

580

 

 

$

26

 

 

Interest income recognized on impaired loans for the three months ended June 30, 2023 was not material.

Credit Risk—The Association monitors the credit risk within the loan portfolio by assessing the strength of the borrower’s repayment capacity and the probability of default. The Association first assesses the paying capacity of the borrower; then, it analyzes the sound worth of any pledged collateral or guarantees. In estimating the allowance for loan losses management also uses a quarterly Loan Concentration Report to monitor any concentrations that may develop in any specific category of the loan portfolio. It identifies four varying degrees of credit worthiness:

Pass Loans: Loans in the pass category are loans that do not raise Association concerns.
Special Mention Loans: Loans in this category may have a potential for weakness which, if not corrected, could weaken the asset and increase the risk in the future. By classifying a loan as Special Mention the Association can give the loan the attention needed to remedy any credit deficiencies or potential weaknesses.

 

Substandard Loans: Loans identified as substandard are assets that are inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Loans in this classification category must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Association will sustain some loss if the deficiencies are not corrected. If a loan is classified as Substandard, a determination based upon objective evidence must be made as to any specific or general valuation allowance within the guidelines of generally accepted accounting principles.
Doubtful Loans: Loans in this category have all the weaknesses inherent in Substandard loans with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. If a loan is classified as Doubtful, a determination based upon objective evidence must be made as to any specific or general valuation allowance within the guidelines of generally accepted accounting principles.

Based on the most recent analysis performed, the risk category of loans by class and year of origination is as follows:

 

(dollars in thousands)

 

Term Loans by Origination Year

 

 

Revolving

 

 

 

 

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Loans

 

 

Total

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

6,634

 

 

$

5,516

 

 

$

5,731

 

 

$

2,611

 

 

$

 

 

$

20,492

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Real Estate - Construction

 

$

6,634

 

 

$

5,516

 

 

$

5,731

 

 

$

2,611

 

 

$

 

 

$

20,492

 

Current year-to-date gross write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

10,357

 

 

 

26,342

 

 

 

19,672

 

 

 

39,407

 

 

 

6,526

 

 

$

102,304

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

2,907

 

 

 

 

 

 

2,907

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Real Estate - Commercial

 

$

10,357

 

 

$

26,342

 

 

$

19,672

 

 

$

42,314

 

 

$

6,526

 

 

$

105,211

 

Current year-to-date gross write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

6,383

 

 

 

32,394

 

 

 

55,240

 

 

 

42,659

 

 

 

11,707

 

 

$

148,383

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

464

 

 

 

 

 

 

464

 

Doubtful

 

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

90

 

Total Real Estate - Residential

 

$

6,473

 

 

$

32,394

 

 

$

55,240

 

 

$

43,123

 

 

$

11,707

 

 

$

148,937

 

Current year-to-date gross write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial - Non Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

1,398

 

 

 

8,675

 

 

 

3,303

 

 

 

12,945

 

 

 

2,897

 

 

$

29,218

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

142

 

 

 

 

 

 

475

 

 

 

 

 

 

617

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

25

 

 

 

 

 

 

25

 

Total Commercial - Non Real Estate

 

$

1,398

 

 

$

8,817

 

 

$

3,303

 

 

$

13,445

 

 

$

2,897

 

 

$

29,860

 

Current year-to-date gross write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

1,504

 

 

 

3,562

 

 

 

2,742

 

 

 

4,420

 

 

 

7,313

 

 

$

19,541

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total - Agricultural

 

$

1,504

 

 

$

3,562

 

 

$

2,742

 

 

$

4,420

 

 

$

7,313

 

 

$

19,541

 

Current year-to-date gross write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

13,435

 

 

 

7,023

 

 

 

1,298

 

 

 

4,129

 

 

 

 

 

$

25,885

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

18

 

 

 

 

 

 

 

 

 

18

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Consumer

 

$

13,435

 

 

$

7,023

 

 

$

1,316

 

 

$

4,129

 

 

$

 

 

$

25,903

 

Current year-to-date gross write-offs

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Land Development and SIDs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

504

 

 

 

6,784

 

 

 

6,131

 

 

 

1,821

 

 

 

200

 

 

$

15,440

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Land Development and SIDs

 

$

504

 

 

$

6,784

 

 

$

6,131

 

 

$

1,821

 

 

$

200

 

 

$

15,440

 

Current year-to-date gross write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

40,305

 

 

$

90,438

 

 

$

94,135

 

 

$

111,863

 

 

$

28,643

 

 

$

365,384

 

 

The Association’s loan classifications as of March 31, 2023, are as follows:

 

(dollars in thousands)

 

 

 

 

Special

 

 

 

 

 

 

 

 

Total

 

 

 

Pass

 

 

Mention

 

 

Substandard

 

 

Doubtful

 

 

Loans

 

1–4 Family Residential

 

$

118,839

 

 

$

 

 

$

771

 

 

$

 

 

$

119,610

 

Multi-Family Residential

 

 

34,296

 

 

 

 

 

 

 

 

 

 

 

 

34,296

 

Commercial Real Estate

 

 

99,367

 

 

 

 

 

 

3,079

 

 

 

 

 

 

102,446

 

Agriculture Real Estate

 

 

9,245

 

 

 

 

 

 

 

 

 

 

 

 

9,245

 

Commercial Non-Real Estate

 

 

29,390

 

 

 

 

 

 

711

 

 

 

 

 

 

30,101

 

Agriculture Non-Real Estate

 

 

8,921

 

 

 

 

 

 

 

 

 

 

 

 

8,921

 

Sanitary & Improvement Districts

 

 

5,468

 

 

 

 

 

 

 

 

 

 

 

 

5,468

 

Consumer Auto

 

 

5,591

 

 

 

 

 

 

31

 

 

 

 

 

 

5,622

 

Consumer Other

 

 

14,334

 

 

 

 

 

 

 

 

 

 

 

 

14,334

 

Non 1–4 Family Construction & Land Development

 

 

23,644

 

 

 

 

 

 

 

 

 

 

 

 

23,644

 

Total

 

$

349,095

 

 

$

 

 

$

4,592

 

 

$

 

 

$

353,687

 

 

Nonperforming and Past-Due Loans—All loans in the Association’s portfolio are considered past due if the required principal and interest payments have not been received as of the date such payments were due.

The following table presents certain information with respect to loans on nonaccrual status as of and for the three months ended June 30, 2023:

 

(dollars in thousands)

 

Nonaccrual

 

 

Nonaccrual

 

 

Nonaccrual

 

 

Nonaccrual

 

 

Interest Income

 

 

 

Loans Beginning

 

 

Loans End

 

 

with no Allowance

 

 

with Allowance

 

 

Recognized

 

June 30, 2023

 

of Period

 

 

of Period

 

 

for Credit Loss

 

 

for Credit Loss

 

 

During the Period

 

Real Estate - Commercial

 

$

484

 

 

$

470

 

 

$

470

 

 

$

 

 

$

10

 

Real Estate- Residential

 

 

338

 

 

 

110

 

 

 

20

 

 

 

90

 

 

 

2

 

Commerical Non-Real Estate

 

 

28

 

 

 

26

 

 

 

1

 

 

 

25

 

 

 

2

 

Other Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

850

 

 

$

606

 

 

$

491

 

 

$

115

 

 

$

14

 

 

The following table presents the recorded investment in nonaccrual and loans past due 90 days or more and still on accrual, by class as of March 31, 2023:

 

(dollars in thousands)

 

 

 

 

Loans Past

 

 

 

 

 

 

Due 90 Days

 

 

 

 

 

 

or More Still

 

March 31, 2023

 

Nonaccrual

 

 

Accruing

 

1-4 Family Residential

 

$

338

 

 

$

 

Commercial Real Estate

 

 

484

 

 

 

 

Commercial Non-Real Estate

 

 

28

 

 

 

 

Consumer Other

 

 

 

 

 

178

 

Total

 

$

850

 

 

$

178

 

 

The following is an aging analysis of the contractually past due loans as of June 30, 2023:

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Past

 

 

 

 

 

 

 

 

 

Greater than

 

 

 

 

 

 

 

 

 

 

 

Due 90 Days

 

 

 

30–59 Days

 

 

60–89 Days

 

 

89 Days

 

 

Total

 

 

Loans Not

 

 

 

 

 

or More Still

 

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Total

 

 

Accruing

 

Real Estate - Construction

 

$

 

 

$

 

 

$

 

 

$

 

 

$

20,492

 

 

$

20,492

 

 

$

 

Real Estate - Commercial

 

 

321

 

 

 

 

 

 

 

 

 

321

 

 

 

104,890

 

 

 

105,211

 

 

 

 

Real Estate - Residential

 

 

91

 

 

 

179

 

 

 

67

 

 

 

337

 

 

 

148,600

 

 

 

148,937

 

 

 

 

Commercial Non-RE

 

 

 

 

 

 

 

 

25

 

 

 

25

 

 

 

29,835

 

 

 

29,860

 

 

 

 

Agricultural

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,541

 

 

 

19,541

 

 

 

 

Other Consumer

 

 

86

 

 

 

453

 

 

 

137

 

 

 

676

 

 

 

25,227

 

 

 

25,903

 

 

 

137

 

Land Development and SIDs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,440

 

 

 

15,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

498

 

 

$

632

 

 

$

229

 

 

$

1,359

 

 

$

364,025

 

 

$

365,384

 

 

$

137

 

 

The following is an aging analysis of the contractually past due loans as of March 31, 2023:

 

(dollars in thousands)

 

 

 

 

 

 

 

Greater than

 

 

 

 

 

 

 

 

 

 

 

 

30–59 Days

 

 

60–89 Days

 

 

89 Days

 

 

Total

 

 

Loan Not

 

 

 

 

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Total

 

1-4 Family Residential

 

$

585

 

 

$

 

 

$

 

 

$

585

 

 

$

119,025

 

 

$

119,610

 

Multi Family Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34,296

 

 

 

34,296

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

102,446

 

 

 

102,446

 

Agricultural RE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,245

 

 

 

9,245

 

Commercial Non-RE

 

 

 

 

 

 

 

 

28

 

 

 

28

 

 

 

30,073

 

 

 

30,101

 

Agricultural Non-RE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,921

 

 

 

8,921

 

SIDS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,468

 

 

 

5,468

 

Consumer Auto

 

 

43

 

 

 

24

 

 

 

 

 

 

67

 

 

 

5,555

 

 

 

5,622

 

Consumer Other

 

 

344

 

 

 

 

 

 

178

 

 

 

522

 

 

 

13,812

 

 

 

14,334

 

Non 1-4 Family Construc and Land Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,644

 

 

 

23,644

 

Total

 

$

972

 

 

$

24

 

 

$

206

 

 

$

1,202

 

 

$

352,485

 

 

$

353,687

 

 

The Association may modify loans to borrowers experiencing financial difficulty by providing modifications to repayment terms; more specifically, modifications to loan interest rates. Management performs an analysis at the time of loan modification. Any reserve required is recorded through a provision to the allowance for credit losses on loans.

As of April 1, 2023, the Association adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures. There were no modifications on loans to borrowers experiencing financial difficulty during the three months ended June 30, 2023. See Note 1. There were no new troubled debt restructurings during the three months ended June 30, 2022.

v3.23.3
Commitments and Contingencies
3 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments And Contingencies

Note 9 - COMMITMENTS AND CONTINGENCIES

The Association 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 including commitments to extend credit and lines or letters of credit and commitments to sell to investors loans held for sale. The Association uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

At June 30, 2023 and March 31, 2023, the Association had approved outstanding loan origination commitments of $3,515 and $4,681, respectively. Loan commitments, which are funded subject to certain limitations, extend over various periods of time and may expire without being drawn upon. Generally, unused commitments are canceled upon expiration of the commitment term as outlined in each individual contract. All outstanding loan origination commitments were subject to forward sales commitments to various entities. Also, at June 30, 2023 and March 31, 2023, the Association has committed unused lines of credit, equity lines, loans in process and letters of credit to consumers totaling $44,321 and $48,938, respectively. The Association evaluates each customer’s credit worthiness on a separate basis and requires collateral based on this evaluation. Collateral consists mainly of residential family units and personal property.

Various legal claims also arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Association’s consolidated financial statements.

v3.23.3
Fair Value Of Financial Instruments
3 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

Note 10 - FAIR VALUE OF FINANCIAL INSTRUMENTS

The Association measures certain financial assets and liabilities at fair value in accordance with GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows:

Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: 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 by observable market data of substantially the full term of the assets or liabilities.

Level 3—Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. The inputs are developed based on the best information available in the circumstances, which might include the Association’s own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment.

Fair Value of Financial Instruments—Financial instruments are classified within fair value hierarchy using the methodologies described above. The following disclosures include financial instruments that are not carried at fair value on the Statements of Financial Condition. The calculation of estimated fair values is based on market conditions at a specific point in time and may not reflect current or future fair values.

Certain financial instruments generally expose the Association to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market. The carrying value of these financial instruments assumes to approximate the fair value of these instruments. These instruments include cash and cash equivalents, non-interest-bearing deposit accounts, FHLB advances, FHLB stock, escrow deposits and accrued interest receivable and payable.

The carrying amounts and estimated fair values by fair value hierarchy of certain financial instruments are as follows:

 

(dollars in thousands)

 

Measurements at Reporting Date Using

 

 

 

Carrying
Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Estimated
Fair Value

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

359,740

 

 

$

 

 

$

 

 

$

322,568

 

 

$

322,568

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

319,470

 

 

$

 

 

$

270,658

 

 

$

 

 

$

270,658

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

348,337

 

 

$

 

 

$

 

 

$

316,169

 

 

$

316,169

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

317,704

 

 

$

 

 

$

272,270

 

 

$

 

 

$

272,270

 

 

 

Available-for-Sale Securities (Recurring)

Where quoted market prices are available in an active market, securities such as U.S. Treasuries, would be classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities would be classified within Level 3 of the hierarchy.

The Association’s financial assets measured at fair value on a recurring basis are available-for-sale securities. Available-for-sale securities are classified within Level 2 because they are valued based on market prices for similar assets. The fair value of the Association’s available-for-sale securities as of June 30, 2023 and March 31, 2023 was $58,636 and $57,842, respectively. The Association does not have any other assets or liabilities measured at fair value on a recurring basis as of June 30, 2023 or March 31, 2023.

 

(dollars in thousands)

 

Fair Value Measurements at Reporting Date Using

 

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Securities Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Backed Securities

 

 

51,075

 

 

 

 

 

 

51,075

 

 

 

 

Municipal Bonds

 

 

7,561

 

 

 

 

 

 

7,561

 

 

 

 

Total

 

$

58,636

 

 

$

 

 

$

58,636

 

 

$

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Securities Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Backed Securities

 

 

50,136

 

 

 

 

 

 

50,136

 

 

 

 

Municipal Bonds

 

 

7,706

 

 

 

 

 

 

7,706

 

 

 

 

Total

 

$

57,842

 

 

$

 

 

$

57,842

 

 

$

 

 

There were no transfers of financial instruments between Levels 1, 2, and 3 during the three months ended June 30, 2023. The Association does not have any financial instruments measured at fair value on a recurring basis classified as Level 3.

Nonrecurring Measurements

The following table presents the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2023 and March 31, 2023:

 

(dollars in thousands)

 

Fair Value Measurements at Reporting Date Using

 

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

492

 

 

$

 

 

$

 

 

$

492

 

Totals

 

$

492

 

 

$

 

 

$

 

 

$

492

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

629

 

 

$

 

 

$

 

 

$

629

 

Totals

 

$

629

 

 

$

 

 

$

 

 

$

629

 

 

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheet, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Impaired Loans (Nonrecurring)

Impaired loans are recorded at fair value on a nonrecurring basis. The fair value of loans is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a monthly basis for additional impairment and adjusted accordingly.

The numerical range of unobservable inputs for these valuation assumptions is not meaningful to this presentation.

v3.23.3
Premises And Equipment
3 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
Premises And Equipment

Note 4 - PREMISES AND EQUIPMENT

Premises and equipment at June 30, 2023 and March 31, 2023, consist of the following:

 

(dollars in thousands)

 

June 30, 2023

 

 

March 31, 2023

 

Land

 

$

828

 

 

$

818

 

Buildings and leasehold improvements

 

 

8,887

 

 

 

8,855

 

Equipment

 

 

3,311

 

 

 

3,150

 

Automobiles

 

 

136

 

 

 

48

 

Computer software

 

 

1,031

 

 

 

1,031

 

Total cost

 

 

14,193

 

 

 

13,902

 

Less accumulated depreciation

 

 

10,161

 

 

 

9,798

 

Total premises and equipment

 

$

4,032

 

 

$

4,104

 

 

Depreciation expense included in occupancy and equipment on the consolidated statements of income totaled $127 and $120 for the three months ended June 30, 2023 and 2022, respectively.

v3.23.3
Deposits
3 Months Ended
Jun. 30, 2023
Deposits [Abstract]  
Deposits

Note 5 - DEPOSITS

A summary of certificates of deposit included in interest bearing deposits in the consolidated statements of financial condition by maturity at June 30, 2023, is as follows:

 

(dollars in thousands)

 

 

 

For the 12 Months Ended June 30

 

Amount

 

2024

 

$

81,061

 

2025

 

 

6,198

 

2026

 

 

2,480

 

2027

 

 

1,395

 

2028+

 

 

210

 

Total certificate accounts

 

$

91,344

 

 

The aggregate amount of jumbo certificates of deposit, each with a minimum denomination of $250 was $29,241 at June 30, 2023 and $31,376 at March 31 2023, respectively. At June 30, 2023 and March 31, 2023, the Association had $8,062 in brokered deposits, which mature in November 2023.

v3.23.3
Borrowings
3 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Borrowings

Note 6 - Borrowings

The Association had no outstanding borrowings as of June 30, 2023 and March 31, 2023.

The Association had remaining availability for Federal Home Loan Bank (FHLB) borrowings of approximately $40,571 and $40,579 at June 30, 2023 and March 31, 2023, respectively. The FHLB has sole discretion to deny additional advances. $80 of investment securities and $50,000 of loans were pledged as collateral for FHLB advances at June 30, 2023.

Additionally, the Association had the capacity to borrow $5,000 from a private bankers’ bank at June 30, 2023 and March 31, 2023.

v3.23.3
Regulatory Capital Requirements
3 Months Ended
Jun. 30, 2023
Regulatory Capital Requirements

Note 7 - REGULATORY CAPITAL REQUIREMENTS

The Association is subject to various regulatory capital requirements administered by 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 Association’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Association must meet specific capital guidelines that involve quantitative measures of the Association’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Association’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Association to maintain minimum amounts and ratios as set forth in the following tables of tangible, core, and total risk-based capital. To be considered well-capitalized under the regulatory framework for Prompt Corrective Action provisions, the Association must maintain minimum Tier I leverage, Tier I risk- based, common equity Tier 1, and total risk-based capital ratios (as defined) as set forth in the following tables.

As of June 30, 2023 and March 31, 2023, the Association was well-capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Association must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table. There are no conditions or events since June 30, 2023, that management believes have changed the Association’s category.

 

The Association is regulated by the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC).

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

 

(dollars in thousands)

 

Actual

 

 

Minimum Required for Capital Adequacy Purposes

 

 

Minimum Required To be Well-Capitalized Under Prompt Corrective Action Provisions

 

As of June 30, 2023

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total Capital (to Risk- Weighted Assets)

 

$

48,373

 

 

 

13.58

%

 

$

28,498

 

 

 

8.00

%

 

$

35,622

 

 

 

10.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Risk- Weighted Assets)

 

$

43,903

 

 

 

12.32

%

 

$

21,373

 

 

 

6.00

%

 

$

28,498

 

 

 

8.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital (to Risk-Weighted Assets)

 

$

43,903

 

 

 

12.32

%

 

$

16,030

 

 

 

4.50

%

 

$

23,154

 

 

 

6.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Average Assets)

 

$

43,903

 

 

 

10.07

%

 

$

17,439

 

 

 

4.00

%

 

$

21,798

 

 

 

5.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2023

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total Capital (to Risk- Weighted Assets)

 

$

47,809

 

 

 

13.45

%

 

$

28,432

 

 

 

8.00

%

 

$

35,540

 

 

 

10.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Risk- Weighted Assets)

 

$

43,355

 

 

 

12.20

%

 

$

21,324

 

 

 

6.00

%

 

$

28,432

 

 

 

8.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital (to Risk-Weighted Assets)

 

$

43,355

 

 

 

12.20

%

 

$

15,993

 

 

 

4.50

%

 

$

23,101

 

 

 

6.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Average Assets)

 

$

43,355

 

 

 

10.12

%

 

$

17,139

 

 

 

4.00

%

 

$

21,424

 

 

 

5.00

%

v3.23.3
Mortgage Servicing
3 Months Ended
Jun. 30, 2023
Transfers and Servicing [Abstract]  
Mortgage Servicing

Note 8 - MORTGAGE SERVICING

Activity for mortgage servicing rights measured using the amortized cost method was as follows:

 

(dollars in thousands)

 

June 30, 2023

 

 

March 31, 2023

 

Mortgage servicing rights

 

 

 

 

 

 

Balance at beginning of year

 

$

434

 

 

$

563

 

Additions

 

 

27

 

 

 

33

 

Repayments and amortization

 

 

(41

)

 

 

(162

)

Balance at end of quarter

 

$

420

 

 

$

434

 

 

At June 30, 2023, no allowance for impairment on the Association’s MSR was necessary.

At June 30, 2023 and March 31, 2023, the Association was servicing loans for others amounting to $148,975 and $149,521, respectively. These loans are not reflected in the Association’s financial statements. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors, and foreclosure processing. Loan servicing income is recorded on the accrual basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees. In connection with these loans serviced for others, the Association held borrowers’ escrow balances of $2,278 and $3,511 at June 30, 2023 and March 31, 2023, respectively, which are included in interest bearing deposits.

Derivative instruments include interest rate locks on commitments to originate loans for the held for sale portfolio and forward commitments on contracts to deliver mortgage-backed securities. The Association has entered into forward commitments for the sale of mortgage loans principally to protect against the risk of adverse interest rate movements on net income. These derivatives are not designated in a hedging relationship. In addition, the Association has entered into commitments to originate loans, which when funded, are classified as held for sale. Such commitments meet the definition of a derivative and are not designated in a hedging relationship. The notional amount and estimated fair value of all such derivative instruments are immaterial.

v3.23.3
Accumulated Other Comprehensive Loss
3 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Accumulated Other Comprehensive Loss

Note 11 -accumulated other comprehensive loss

The components of accumulated other comprehensive loss for the three months ended June 30, 2023 and 2022 are as follows:

 

(dollars in thousands)

 

Unrealized Gains
and Losses on
Available-for-
Sale Debt
Securities

 

 

Defined Benefit
Pension Plans

 

 

Total

 

Three Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

(4,718

)

 

$

(389

)

 

$

(5,107

)

Other comprehensive income (loss)

 

 

(506

)

 

 

 

 

 

(506

)

Balance at end of period

 

$

(5,224

)

 

$

(389

)

 

$

(5,613

)

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2022

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

(2,033

)

 

$

(1,692

)

 

$

(3,725

)

Other comprehensive income (loss)

 

 

(1,648

)

 

 

18

 

 

 

(1,630

)

Balance at end of period

 

$

(3,681

)

 

$

(1,674

)

 

$

(5,355

)

 

The following table summarizes the significant amounts reclassified out of each component of AOCI for the three months ended June 30, 2023 and 2022:

 

(dollars in thousands)

 

Three Months Ended June 30,

 

 

 

 

 

2023

 

 

2022

 

 

 

 

 

Amount Reclassified
from AOCI

 

 

 

Details about AOCI Components

 

 

 

 

 

 

 

 

Unrealized gains and losses on available-for-sale securities

 

$

(642

)

 

$

(2,085

)

 

Debt Securities gains (losses), net

 

 

136

 

 

 

437

 

 

Income tax (expense) benefit

 

$

(506

)

 

$

(1,648

)

 

Net income (loss)

 

 

 

 

 

 

 

 

 

Amortization of defined benefit pension items

 

 

 

 

 

 

 

 

Actuarial gains (losses)

 

$

 

 

$

20

 

 

Salaries and employee benefits

 

 

 

 

 

(2

)

 

Income tax (expense) benefit

 

$

 

 

$

18

 

 

Net income (loss)

 

 

 

 

 

 

 

 

 

Total reclassification for the period

 

$

(506

)

 

$

(1,630

)

 

Net income (loss)

v3.23.3
Leases
3 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases

Note 12 -LEASES

The Association leases office space under operating leases that expire at various dates through October 2030.

Rent expense, which is included in occupancy expenses on the consolidated statements of income, was $19 and $19 for the three months ended June 30, 2023 and 2022, respectively.

The following table shows the future undiscounted lease payments required under the leases described above as of June 30, 2023:

 

12 Months Ending June 30,

 

Operating Leases

 

2024

 

$

76

 

2025

 

 

60

 

2026

 

 

52

 

2027

 

 

40

 

2028

 

 

37

 

Thereafter

 

 

121

 

Total undiscounted lease payments

 

$

386

 

Less: Imputed interest

 

 

(34

)

Net lease liability

 

$

352

 

v3.23.3
Plan of Conversion
3 Months Ended
Jun. 30, 2023
Plan of Conversion [Abstract]  
Plan of Conversion

Note 13 - PLAN OF CONVERSION

Plan of Conversion and Change in Corporate Form

On June 6, 2023, the Board of Directors of the Association adopted a plan of conversion (the “Plan”). The Plan has been conditionally approved by the Federal Reserve Board and the OCC and is subject to the affirmative vote of at least a majority of the total votes eligible to be cast by the voting members of the Association at a special meeting. The Plan sets forth that the Association proposes to convert into a stock savings association structure with the establishment of a stock holding company (Central Plains Bancshares, Inc.), as parent of the Association. The Association will convert to the stock form of ownership, followed by the issuance of all of the Association’s outstanding stock to Central Plains Bancshares, Inc. Pursuant to the Plan, the Association will determine the total offering value and number of shares of common stock based upon an independent appraiser’s valuation. The stock will be priced at $10.00 per share. In addition, the Association’s Board of Directors will adopt an employee stock ownership plan (“ESOP”), which will subscribe for up to 8% of the common stock sold in the offering.

Central Plains Bancshares, Inc. has been organized as a corporation under the laws of the State of Maryland and will own all of the outstanding common stock of the Association upon completion of the conversion.

The conversion will be accounted for as a change in corporate form with the historic basis of the Association’s assets, liabilities, and equity unchanged as a result. The total estimated cost of the mutual-to-stock conversion is $1.9 million. Costs of $608,000 have been paid and deferred as of June 30, 2023. If the conversion is successful, the total conversion costs will be offset against the proceeds of the stock sale. In the event the conversion is not successful the costs will be expensed during the year ending March 31, 2024.

Central Plains Bancshares, Inc. will be an Emerging Growth Company, as defined by the Securities and Exchange Commission, and, for as long as it continues to be an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to other public companies but not to “emerging growth companies.” Central Plains Bancshares, Inc. intends to use the extended transition period to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. Accordingly, its financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.

v3.23.3
Subsequent Events
3 Months Ended
Jun. 30, 2023
Subsequent Events [Abstract]  
Subsequent Events

Note 14 - SUBSEQUENT EVENTS

Subsequent events have been evaluated through the date of issuance of the unaudited Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures.

v3.23.3
Summary of Significant Accounting Policies (Policies)
3 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Business

Business—Home Federal Savings and Loan Association of Grand Island d.b.a. Home Federal Bank (the “Association”) is a federally chartered mutual savings and loan association whose primary business is providing mortgage, consumer, commercial real estate, and commercial loans in the Grand Island, Nebraska area, with additional lending opportunities through the Association’s participation network of banks in Nebraska and other states, and acquiring consumer and commercial deposits to fund these investments.

Basis of Presentation

Basis of Presentation—The consolidated financial statements include the accounts of the Association and First Service Corporation, a wholly owned subsidiary. All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (GAAP) as codified in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC).

Central Plains Bancshares, Inc., a Maryland corporation (the “Company”), was formed to serve as the stock holding company for the Association as part of the Association's mutual-to-stock conversion. As of June 30, 2023, the conversion had not been completed, and, as of that date, the Company had no assets or liabilities, and had not conducted any business other than that of an organizational nature. After the conversion and offering are completed, we will be organized as a fully public stock holding company, with 100% of the common stock being held by the public. Accordingly, the financial statements and other information included in Part I of this Quarterly Report is for the Association.

In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures necessary for the fair presentation of the accompanying consolidated financial statements have been included. The results of operations for any interim periods are not necessarily indicative of the results which may be expected for the entire year or any other period.

Use of Estimates

Use of Estimates—In preparing the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to change in the near term relate to the determination of the allowance for loan losses, the determination of the pension liability, as well as the fair value measurements of investment securities. As with any estimate, actual results could differ from those estimates.

Accounting Developments

Accounting Developments—In June 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-13,Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” also known as Current Expected Credit Losses, or CECL. ASU 2016-13 was issued to provide financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date to enhance the decision making process. The CECL model utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity securities, and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. For available for-sale securities where fair value is less than cost, credit-related impairment, if any, will be recognized in an allowance for credit losses and adjusted each period for changes in expected credit risk. This model replaces the multiple existing impairment models, which generally require that a loss be incurred before it is recognized.

The Association adopted ASC 326 and all related subsequent amendments thereto effective April 1, 2023 using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The transition adjustment for the adoption of CECL resulted in an increase in the allowance for credit losses on loans of $299, which is presented as a reduction to net loans outstanding, and the establishment of an allowance for credit losses on unfunded loan commitments of $210, which is recorded within accounts payable, accrued expenses and other liabilities on the consolidated statement of financial condition. The Association recorded a net decrease to retained earnings of $402, as of April 1, 2023 for the cumulative effect of adopting CECL, which reflects the transition adjustments noted above, net of the applicable deferred tax assets recorded. Results for reporting periods beginning after April 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable accounting standards (“Incurred Loss”).

 

In March 2022, FASB issued ASU 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this update eliminate the accounting guidance and related disclosures for troubled debt restructurings (TDRs) by creditors in Subtopic 310-40, ReceivablesTroubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty and requiring an entity to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial InstrumentsCredit LossesMeasured at Amortized Cost. The Association adopted the amendments in this update on April 1, 2023, and is applying the amendments prospectively with the exception of the recognition and measurement of existing TDRs for which the entity has elected to apply a modified retrospective transition method.

Allowance for Credit Losses Allowance for Credit Losses

The allowance for credit losses (“ACL”) is an estimate of the expected credit losses on the loans held for investment, unfunded loan commitments, held to maturity securities, and available-for-sale debt securities portfolios.

Allowance for Credit Losses on Loans—The ACL is maintained by management at a level believed adequate to absorb estimated credit losses that are expected to occur within the existing loan portfolio through their contractual terms adjusted for expected prepayments. The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans. Determination of the ACL is inherently subjective in nature since it requires significant estimates and management judgment, and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the ultimate adequacy of the ACL is dependent upon a variety of factors beyond the Association’s direct control, including, but not limited to, the performance of the loan portfolio, consideration of current economic trends, changes in interest rates and property values, estimated losses on pools of homogeneous loans based on an analysis that uses historical loss experience for prior periods that are determined to have like characteristics with the current period such as pre-recessionary, recessionary, or recovery periods, portfolio growth and concentration risk, management and staffing changes, the interpretation of loan risk classifications by regulatory authorities and other credit market factors.

The ACL methodology consists of measuring loans on a collective (pool) basis when similar risk characteristics exist. The Association has identified seven portfolio segments and measures the ACL using the Scaled CECL Allowance for Losses Estimator (“SCALE”) method. The loan portfolios are real estate – construction, real estate – commercial, real estate – residential, commercial, agriculture, other consumer and land development/sanitary improvement districts (SIDS). The SCALE method uses publicly available data from Schedule RI-C of the Call Report to derive the initial proxy expected lifetime loss rates. These proxy expected lifetime loss rates are then adjusted for Association-specific facts and circumstances to arrive at the final ACL estimate that adequately reflects the Association’s loss history and credit risk within our portfolio.

The qualitative factors applied to each loan portfolio consist of the impact of other internal and external qualitative and credit market factors as assessed by management through a detailed loan review, ACL analysis and credit discussions. These internal and external qualitative and credit market factors used include the following:

The nature and volume of the Association’s financial assets;
The existence, growth, and effect of any concentration of credit;
The volume and severity of past due financial assets, the volume of nonaccrual assets, and the volume and severity of adversely classified or graded assets;
The value of the underlying collateral for loans that are non-collateral-dependent;
The Association’s lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries;
The quality of the Association’s credit review function;
The experience, ability, and depth of the Association’s lending, investment, collection, and other relevant management and staff;
The effect of other external factors such as the regulatory, legal and technological environments; competition; and events such as natural disasters; and
Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Association operates that affect the collectability of financial assets.

The impact of the above listed internal and external qualitative and credit market risk factors is assessed within predetermined ranges to adjust the ACL totals calculated.

In addition to the pooled analysis performed for the majority of our loan and commitment balances, we also review those loans that have collateral dependency or nonperforming status which requires a specific review of that loan, per our individually analyzed CECL calculations.

Loans are charged off against the ACL when management believes the uncollectability of a loan balance is confirmed, while recoveries of amounts previously charged-off are credited to the ACL. Approved releases from previously established ACL reserves authorized under our ACL methodology also reduce the ACL. Additions to the ACL are established through the provision for credit losses on loans, which is charged to expense.

The Association’s ACL methodology is intended to reflect all loan portfolio risk, but management recognizes the inability to accurately depict all future credit losses in a current ACL estimate, as the impact of various factors cannot be fully known. Accrued interest receivable on loans is excluded from the amortized cost basis of financing receivables for the purpose of determining the allowance for credit losses.

Allowance for Credit Losses on Unfunded Loan Commitments—The Association estimates expected credit losses over the contractual period in which the Association is exposed to credit risk by a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Association. The ACL related to off-balance sheet credit exposures, which is recorded within accounts payable, accrued expenses and other liabilities on the consolidated statement of financial condition, is estimated at each balance sheet date under the CECL model, and is adjusted as determined necessary through the provision for credit losses on the consolidated statement of income. The estimate for ACL on unfunded loan commitments includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Allowance for Credit Losses on Securities Available-for-Sale—For available-for-sale debt securities in an unrealized loss position, the Association first assesses whether it intends to sell, or it is more likely than not that it will sell, the security before recovery of its amortized cost basis. If either of the aforementioned criteria exists, the Association will record an ACL related to securities available-for-sale with an offsetting entry to the provision for credit losses on securities on the income statement. If either of these criteria does not exist, the Association will evaluate the securities individually to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors, such as market interest rate fluctuations.

In evaluating securities available-for sale for potential impairment, the Association considers many factors, including the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; and its ability and intent to hold the security for a period of time sufficient for a recovery in value. The Association also considers the extent to which the securities are issued by the federal government or its agencies, and any guarantee of issued amounts by those agencies. The amount of the impairment related to other factors is recognized in other comprehensive income (loss).

Allowance for Credit Losses on Held-to Maturity Securities—The allowance for credit losses on held-to-maturity debt securities is estimated using a CECL methodology. Any expected credit loss is provided through the allowance for credit loss on held-to-maturity securities and is deducted from the amortized cost basis of the security so that the balance sheet reflects the net amount the Association expects to collect. Nearly all the Associations HTM debt securities are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Accordingly, there is a zero-credit loss expectation on these securities.

Allowance for Loan Losses (Prior to April 1, 2023)

Allowance for Loan Losses (Prior to April 1, 2023)—The allowance for loan losses represents management’s estimate of probable losses inherent in the loan portfolio. Additions to the allowance are recorded in the provision for loan losses charged to expense. Charge-offs, net of recoveries, are deducted from the allowance. The allowance estimate is based on prior experience, the nature and volume of the loan portfolio, review of specific problem loans, and an evaluation of the overall portfolio quality under current economic conditions. Specific reserves for impaired loans are measured and recognized to the extent that the recorded investment of an impaired loan exceeds its value based on either the fair value of the loan’s underlying collateral less estimated costs to sell, the calculated present value of projected cash flows discounted at the contractual interest rate, or the loan’s observable fair value.

 

The Association’s allowance for loan losses consists of various methodologies to determine impairment: (a) loans individually evaluated for impairment are evaluated based upon a specific identified probable loss, and (b) loans collectively evaluated for impairment are evaluated based on historical loan loss experience for similar loans with similar characteristics, adjusted to reflect the impact of current conditions. Factors considered in determining the adjustment for current conditions include the following: (a) changes in asset quality, (b) composition and concentrations of credit risk, and (c) the impact of economic risks on the portfolio.

In determining the allowance for loan losses, management considers factors such as economic and business conditions affecting key lending areas, credit concentrations and credit quality trends. Since the evaluation of the inherent loss with respect to these factors is subject to a higher degree of uncertainty, the measurement of the overall allowance is subject to estimation risk and the amount of actual losses can vary significantly from the estimated amounts. The Association’s measurement methods incorporate comparisons between recent experience and historical rates.

Loans are generally secured by underlying real estate, business assets, personal property and personal guarantees. The amount of collateral obtained is based upon management’s evaluation of the borrower.

The Association periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a TDR.

A loan is considered impaired when it is probable that all principal and interest amounts due will not be collected in accordance with the loan’s contractual terms. Except for TDRs, consumer loans within any class are generally not individually evaluated on a regular basis for impairment. All TDRs, regardless of the outstanding balance amount, are considered to be impaired.

The allowance established for probable losses on specific loans is based on a periodic analysis and evaluation of classified loans. Specific reserves for impaired loans are measured and recognized to the extent that the recorded investment of an impaired loan exceeds its value based on either the fair value of the loan’s underlying collateral less costs to sell, the calculated present value of projected cash flows discounted at the contractual effective interest rate or the loan’s observable fair value.

Cash and Cash Equivalents

Cash and Cash Equivalents—Cash and cash equivalents include cash on hand, federal funds sold, demand deposits at other financial institutions, and short-term investments with maturities when purchased, of three months or less.

Investment Securities

Investment Securities—Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Securities not classified as held to maturity are classified as available for sale and recorded at fair value, with unrealized gains and losses on a net-of-tax basis excluded from earnings and reported in other comprehensive income. The fair value of a security is determined based on quoted market prices. If quoted market prices are not available, fair value is determined based on quoted market prices of similar instruments or discounted cash flow models that incorporate market inputs and assumptions including discount rates, prepayment speeds, and loss rates. The Association did not have any securities classified as trading at June 30, 2023 and March 31, 2023.

Purchased premiums and discounts are amortized and accreted to the earlier of call or maturity of the related security using the effective interest method. Realized gains and losses on the sale of securities are recognized on the specific identification method in the statements of income.

For periods prior to April 1, 2023, management monitored securities for other-than-temporary-impairment (OTTI). If the Association intends to sell the security or will more likely than not be required to sell the security before recovery of the entire amortized cost basis, then an OTTI has occurred. However, even if the Association does not intend to sell the security and will not likely be required to sell the security before recovery of its entire amortized cost basis, the Association must evaluate expected cash flows to be received to determine if a credit loss has occurred. In the event of a credit loss, the credit component of the impairment is recorded as a loss in the statement of income and the non-credit component is recognized through other comprehensive income (loss).

Federal Home Loan Bank Stock

Federal Home Loan Bank Stock—As a member of the Federal Home Loan Bank of Topeka (FHLB), the Association is required to maintain an investment in the capital stock of the FHLB. For financial reporting purposes, such stock is carried at cost, which approximates fair value, based on the redemption provisions.

Loans Held for Sale

Loans Held for Sale—Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Mortgage loans held for sale are generally sold with servicing rights retained. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related mortgage loan sold, which is reduced by the cost allocated to the servicing right. The Association generally locks in the sale price to the purchaser of the mortgage loan at the same time an interest rate commitment is made to the borrower.

Loans

Loans—Loans that management has the intent and ability to hold for the foreseeable future are stated at the amount of unpaid principal less an allowance for loan losses and any deferred fees or costs on originated loans. Interest on loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. The accrual of interest on impaired loans is discontinued when management believes that the borrower may be unable to make payments as scheduled, generally when a loan becomes contractually delinquent for three months or more. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent that cash payments are received in excess of principal due. Loan origination fees and commitment fees offset by certain direct loan origination costs are deferred and recognized over the contractual life of the loan as a yield adjustment.

Mortgage Servicing Rights

Mortgage Servicing Rights—Mortgage servicing rights are established based on the allocated fair value of servicing rights retained on loans originated by the Association and subsequently sold in the secondary market. Mortgage servicing rights are amortized into servicing fees on loans on the consolidated statements of income in proportion to, and over the period of, the estimated net servicing income and are evaluated for impairment based on their fair value. Each class of separately recognized servicing assets subsequently measured using the amortization method are evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized.

Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 860-50), servicing rights resulting from the sale or securitization of loans originated by the Association are initially measured at fair value at the date of transfer. The Association has elected to subsequently measure the mortgage servicing rights using the amortization method. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment or increased obligation based on fair value at each reporting date.

Each class of separately recognized servicing assets subsequently measured using the amortization method are evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported with other noninterest expense on the income statement.

Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income.

Premises and Equipment

Premises and Equipment—Office properties and equipment are carried at cost less accumulated depreciation. Depreciation is computed based on the straight-line basis over the estimated useful lives of the assets ranging from 3 to 15 years. Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Costs incurred for maintenance and repairs are expensed as incurred. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of a particular asset may not be recoverable.

Leases

Leases—Lease expense for operating and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent the Association’s right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. When the rate implicit in the lease is unknown, the present value of the lease payments is determined using our incremental borrowing rate based on the FHLB amortizing advance rate, adjusted for the lease term and other factors.

Revenue Recognition

Revenue Recognition—Most of the Association’s revenue is not subject to Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, including net interest income, fees related to loans and loan commitments, gain on derivatives, and gain on sales of loans and securities.

 

Under ASC 606, the Association must identify the contract with a customer, identify the performance obligation(s) within the contract, determine the transaction price, allocate the transaction price to the performance obligation(s) within the contract, and recognize revenue when (or as) the performance obligation(s) are satisfied. The core principle under ASC 606 requires the Association to recognize revenue to depict the transfer of services or products to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those services or products recognized as performance obligations are satisfied. The Association generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Since performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers.

Transfer of Financial Assets

Transfer of Financial Assets—Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Association, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Association does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity.

Retirement Plans

Retirement Plans—Pension expense is the net of service and interest cost, return on plan assets, and amortization of gains and losses not immediately recognized. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service.

Interest Rate Risk

Interest Rate Risk—The Association is a mutual savings bank engaged principally in originating and investing in first mortgage loans, consumer loans to individuals, agricultural loans and commercial loans to businesses primarily in Grand Island, Nebraska. These loans are funded primarily with short-term liabilities that have interest rates that vary with market rates over time. The earnings of the Association are exposed to interest rate risk largely because of the mismatch between the repricing intervals of its assets and liabilities.

To reduce interest rate risk the Association has employed the strategy of selling a majority of the single family fixed-rate home loans the Association originates into the secondary market. The Association holds any adjustable-rate single family home loans in their portfolio. In addition, the commercial loans the Association originates and maintains in its portfolio are either tied to some variant of Wall Street Journal Prime (WSJP) and adjust as WSJP adjusts or they contain shorter term call dates (typically three or five years) when amortized over longer periods of time. The consumer portfolio has three-to-five-year amortized terms which mitigate long term interest rate exposure in this portfolio.

Income Taxes

Income Taxes—The Association and its subsidiary file consolidated income tax returns. Income taxes are accounted for using an asset and liability method. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to operating loss and tax credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using the currently enacted tax rates expected to apply in the year in which those temporary differences are expected to be recovered or settled. If needed, a valuation allowance is recorded to reduce deferred tax assets to the amount expected to be realized. The Association recognizes tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon settlement. A liability for unrecognized tax benefits is recorded for any tax benefits claimed in tax returns that do not meet these recognition and measurement standards. The Association recognizes both interest and penalties (if applicable) as a component of income tax expense.

Comprehensive Income

Comprehensive Income—Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and minimum pension liability adjustments, are reported as a separate component of the equity section of the consolidated statements of financial condition; such items, along with net income, are components of comprehensive income, net of tax.

Financial Instruments and Loan Commitments

Financial Instruments and Loan Commitments—Financial instruments include off-balance-sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Instruments, such as standby letters of credit, that are considered financial guarantees are recorded at fair value.

v3.23.3
Investment Securities (Tables)
3 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Summary of Investment Securities Available for Sale and Held to Maturity

The following is a summary of investment securities at June 30, 2023 and March 31, 2023:

 

(dollars in thousands)

 

June 30, 2023

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

Available-for-Sale

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

FHLMC bonds

 

$

26,652

 

 

$

5

 

 

$

(2,432

)

 

$

24,225

 

GNMA bonds

 

 

3,964

 

 

 

 

 

 

(143

)

 

 

3,821

 

FNMA bonds

 

 

25,641

 

 

 

10

 

 

 

(2,622

)

 

 

23,029

 

Municipal bonds

 

 

8,993

 

 

 

 

 

 

(1,432

)

 

 

7,561

 

Total

 

$

65,250

 

 

$

15

 

 

$

(6,629

)

 

$

58,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-Maturity

 

 

 

 

 

 

 

 

 

 

 

 

FHLMC bonds

 

$

111

 

 

$

 

 

$

(2

)

 

$

109

 

GNMA bonds

 

 

71

 

 

 

 

 

 

(3

)

 

 

68

 

FNMA bonds

 

 

199

 

 

 

 

 

 

(3

)

 

 

196

 

Total

 

$

381

 

 

$

 

 

$

(8

)

 

$

373

 

 

(dollars in thousands)

 

March 31, 2023

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

Available-for-Sale

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

FHLMC bonds

 

$

25,446

 

 

$

13

 

 

$

(2,203

)

 

$

23,256

 

GNMA bonds

 

 

2,648

 

 

 

 

 

 

(58

)

 

 

2,590

 

FNMA bonds

 

 

26,726

 

 

 

17

 

 

 

(2,453

)

 

 

24,290

 

Municipal bonds

 

 

8,994

 

 

 

1

 

 

 

(1,289

)

 

 

7,706

 

Total

 

$

63,814

 

 

$

31

 

 

$

(6,003

)

 

$

57,842

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-Maturity

 

 

 

 

 

 

 

 

 

 

 

 

FHLMC bonds

 

$

116

 

 

$

 

 

$

(2

)

 

$

114

 

GNMA bonds

 

 

74

 

 

 

 

 

 

(1

)

 

 

73

 

FNMA bonds

 

 

232

 

 

 

1

 

 

 

(4

)

 

 

229

 

Total

 

$

422

 

 

$

1

 

 

$

(7

)

 

$

416

 

Summary of Debt Securities Available for Sale and Unrealized Loss Position

The fair value and gross unrealized losses on the Association’s available-for-sale investment securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2023 and March 31, 2023, are as follows:

 

(dollars in thousands)

 

Less than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

June 30, 2023

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

Available-for-Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHLMC bonds

 

$

4,468

 

 

$

(70

)

 

$

18,667

 

 

$

(2,362

)

 

$

23,135

 

 

$

(2,432

)

GNMA bonds

 

 

1,723

 

 

 

(50

)

 

 

2,098

 

 

 

(93

)

 

 

3,821

 

 

 

(143

)

FNMA bonds

 

 

3,113

 

 

 

(24

)

 

 

18,400

 

 

 

(2,598

)

 

 

21,513

 

 

 

(2,622

)

Municipal bonds

 

 

1,707

 

 

 

(11

)

 

 

5,854

 

 

 

(1,421

)

 

 

7,561

 

 

 

(1,432

)

Total

 

$

11,011

 

 

$

(155

)

 

$

45,019

 

 

$

(6,474

)

 

$

56,030

 

 

$

(6,629

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

March 31, 2023

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

Available-for-Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHLMC bonds

 

$

4,714

 

 

$

(133

)

 

$

16,482

 

 

$

(2,070

)

 

$

21,196

 

 

$

(2,203

)

GNMA bonds

 

 

2,576

 

 

 

(57

)

 

 

14

 

 

 

(1

)

 

 

2,590

 

 

 

(58

)

FNMA bonds

 

 

4,315

 

 

 

(78

)

 

 

17,027

 

 

 

(2,375

)

 

 

21,342

 

 

 

(2,453

)

Municipal bonds

 

 

 

 

 

 

 

 

5,688

 

 

 

(1,289

)

 

 

5,688

 

 

 

(1,289

)

Total

 

$

11,605

 

 

$

(268

)

 

$

39,211

 

 

$

(5,735

)

 

$

50,816

 

 

$

(6,003

)

Schedule of Amortized Cost and Fair Value of Available for sale Investment Securities by Contractual Maturity

The amortized cost and fair values of available for sale investment securities as of June 30, 2023 by contractual maturity, are shown below:

 

(dollars in thousands)

 

Available for Sale

 

 

 

Amortized Cost

 

 

Fair Value

 

Maturity

 

 

 

 

 

 

Due less than one year

 

$

60

 

 

$

59

 

Due after one year through five years

 

 

2,443

 

 

 

2,345

 

Due after five years through ten years

 

 

1,803

 

 

 

1,565

 

Due after ten years

 

 

4,687

 

 

 

3,592

 

Mortgage-backed securities and collateralized mortgage obligations

 

 

56,257

 

 

 

51,075

 

Total

 

$

65,250

 

 

$

58,636

 

v3.23.3
Loans and Allowance for Credit Losses (Tables)
3 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Summary of Loans Receivable and Related Reclassifications Loans and these related reclassifications, are summarized as follows at June 30, 2023 and March 31, 2023:

 

(dollars in thousands)

 

 

 

 

Post Adoption

 

 

The Effect

 

 

Pre Adoption

 

 

 

June 30, 2023

 

 

March 31, 2023

 

 

of Adoption

 

 

March 31, 2023

 

 

 

 

 

Real Estate - Construction

 

$

20,492

 

 

$

19,301

 

 

$

19,301

 

 

$

 

Non-1-4 Family Construction & Land Development

 

 

 

 

 

 

 

 

(23,644

)

 

 

23,644

 

Real Estate - Commercial

 

 

105,211

 

 

 

102,446

 

 

 

 

 

 

102,446

 

Real Estate - Residential

 

 

148,937

 

 

 

148,486

 

 

 

148,486

 

 

 

 

1-4 Family Residential

 

 

 

 

 

 

 

 

(119,610

)

 

 

119,610

 

Multi-Family Residential

 

 

 

 

 

 

 

 

(34,296

)

 

 

34,296

 

Commercial Non-Real Estate

 

 

29,860

 

 

 

30,101

 

 

 

 

 

 

30,101

 

Agriculture

 

 

19,541

 

 

 

18,166

 

 

 

18,166

 

 

 

 

Agriculture Real Estate

 

 

 

 

 

 

 

 

(9,245

)

 

 

9,245

 

Agriculture Non-Real Estate

 

 

 

 

 

 

 

 

(8,921

)

 

 

8,921

 

Consumer

 

 

25,903

 

 

 

19,956

 

 

 

19,956

 

 

 

 

Consumer Auto

 

 

 

 

 

 

 

 

(5,622

)

 

 

5,622

 

Consumer Other

 

 

 

 

 

 

 

 

(14,334

)

 

 

14,334

 

Land Development and SIDs*

 

 

15,440

 

 

 

15,231

 

 

 

15,231

 

 

 

 

Sanitary & Improvement Districts

 

 

 

 

 

 

 

 

(5,468

)

 

 

5,468

 

Total Loans

 

 

365,384

 

 

 

353,687

 

 

 

 

 

 

353,687

 

Allowance for credit losses

 

 

(5,699

)

 

 

(5,711

)

 

 

(299

)

 

 

(5,412

)

Net deferred orig. costs & fees

 

 

55

 

 

 

62

 

 

 

 

 

 

62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans—net

 

$

359,740

 

 

$

348,038

 

 

$

(299

)

 

$

348,337

 

*SIDs = Sanitary & Improvement Districts

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Changes in Allowance

Changes in the allowance for the three months ended June 30, 2023 and 2022 are as follows:

 

(dollars in thousands)

 

Three Months Ended June 30, 2023

 

 

 

Beginning

 

 

Impact of

 

 

Provision for

 

 

 

 

 

 

 

 

Ending

 

 

 

Allowance

 

 

ASC326

 

 

(Recovery of)

 

 

Loans

 

 

 

 

 

Allowance

 

 

 

Balance

 

 

Adoption

 

 

Credit Losses

 

 

Charged off

 

 

Recoveries

 

 

Balance

 

Real Estate - Construction

 

$

334

 

 

$

28

 

 

$

22

 

 

$

 

 

$

 

 

$

384

 

Real Estate - Commercial

 

 

2,048

 

 

 

(904

)

 

 

56

 

 

 

 

 

 

 

 

 

1,200

 

Real Estate - Residential

 

 

1,286

 

 

 

775

 

 

 

(95

)

 

 

 

 

 

 

 

 

1,966

 

Commercial Non-Real Estate

 

 

915

 

 

 

450

 

 

 

(122

)

 

 

 

 

 

18

 

 

 

1,261

 

Agricultural

 

 

484

 

 

 

(255

)

 

 

17

 

 

 

 

 

 

 

 

 

246

 

Other Consumer

 

 

157

 

 

 

138

 

 

 

88

 

 

 

(1

)

 

 

1

 

 

 

383

 

Land Development and SIDs

 

 

188

 

 

 

67

 

 

 

3

 

 

 

 

 

 

1

 

 

 

259

 

Total

 

$

5,412

 

 

$

299

 

 

$

(31

)

 

$

(1

)

 

$

20

 

 

$

5,699

 

 

 

(dollars in thousands)

 

Three Months Ended June 30, 2022

 

 

 

Beginning

 

 

Provision for

 

 

 

 

 

 

 

 

Ending

 

 

 

Allowance

 

 

(Recovery of)

 

 

Loans

 

 

 

 

 

Allowance

 

 

 

Balance

 

 

Loan Losses

 

 

Charged off

 

 

Recoveries

 

 

Balance

 

1-4 Family Residential

 

$

636

 

 

$

(7

)

 

$

 

 

$

 

 

$

629

 

Multi Family Residential

 

 

481

 

 

 

27

 

 

 

 

 

 

 

 

 

508

 

Commercial Real Estate

 

 

1,845

 

 

 

45

 

 

 

 

 

 

 

 

 

1,890

 

Agricultural RE

 

 

213

 

 

 

 

 

 

 

 

 

 

 

 

213

 

Commercial Non-RE

 

 

930

 

 

 

39

 

 

 

 

 

 

 

 

 

969

 

Agricultural Non-RE

 

 

281

 

 

 

 

 

 

 

 

 

 

 

 

281

 

SIDS

 

 

50

 

 

 

(10

)

 

 

 

 

 

 

 

 

40

 

Consumer Auto

 

 

64

 

 

 

(1

)

 

 

 

 

 

 

 

 

63

 

Consumer Other

 

 

71

 

 

 

34

 

 

 

 

 

 

 

 

 

105

 

Non 1-4 Family Construction and Land Development

 

 

357

 

 

 

25

 

 

 

 

 

 

 

 

 

382

 

Total

 

$

4,928

 

 

$

152

 

 

$

 

 

$

 

 

$

5,080

 

Schedule of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segments and based on Impairment Method

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segments and based on impairment method as of March 31, 2023.

 

(dollars in thousands)

 

Year Ended March 31, 2023

 

 

 

Indivdually

 

 

Collectively

 

 

Ending

 

 

 

Evaluated for

 

 

Evaluated For

 

 

Allowance

 

Ending allowance balance attributed to loans:

 

Impairment

 

 

Impairment

 

 

Balance

 

1-4 Family Residential

 

$

193

 

 

$

493

 

 

$

686

 

Multi Family Residential

 

 

 

 

 

670

 

 

 

670

 

Commercial Real Estate

 

 

 

 

 

2,048

 

 

 

2,048

 

Agricultural RE

 

 

 

 

 

203

 

 

 

203

 

Commercial Non-RE

 

 

28

 

 

 

887

 

 

 

915

 

Agricultural Non-RE

 

 

 

 

 

281

 

 

 

281

 

SIDS

 

 

 

 

 

50

 

 

 

50

 

Consumer Auto

 

 

 

 

 

44

 

 

 

44

 

Consumer Other

 

 

 

 

 

113

 

 

 

113

 

Non 1-4 Family Construction and Land Development

 

 

 

 

 

402

 

 

 

402

 

Total

 

$

221

 

 

$

5,191

 

 

$

5,412

 

Summary of Impaired Loans

(dollars in thousands)

 

Year Ended March 31, 2023

 

 

 

Indivdually

 

 

Collectively

 

 

 

 

 

 

Evaluated for

 

 

Evaluated For

 

 

Total

 

Loans:

 

Impairment

 

 

Impairment

 

 

Loans

 

1-4 Family Residential

 

$

338

 

 

$

119,272

 

 

$

119,610

 

Multi Family Residential

 

 

 

 

 

34,296

 

 

 

34,296

 

Commercial Real Estate

 

 

483

 

 

 

101,963

 

 

 

102,446

 

Agricultural RE

 

 

 

 

 

9,245

 

 

 

9,245

 

Commercial Non-RE

 

 

29

 

 

 

30,072

 

 

 

30,101

 

Agricultural Non-RE

 

 

 

 

 

8,921

 

 

 

8,921

 

SIDS

 

 

 

 

 

5,468

 

 

 

5,468

 

Consumer Auto

 

 

 

 

 

5,622

 

 

 

5,622

 

Consumer Other

 

 

 

 

 

14,334

 

 

 

14,334

 

Non 1-4 Family Construction and Land Development

 

 

 

 

 

23,644

 

 

 

23,644

 

Total

 

$

850

 

 

$

352,837

 

 

$

353,687

 

 

 

The Association’s impaired loans at March 31, 2023, were as follows:

 

(dollars in thousands)

 

 

 

 

Unpaid

 

 

 

 

 

Average

 

 

 

Recorded

 

 

Principal

 

 

Specific

 

 

Investment in

 

 

 

Balance

 

 

Balance

 

 

Allowance

 

 

Impaired Loans

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

1–4 Family Residential

 

$

 

 

$

 

 

$

 

 

$

 

Multi-Family Residential

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate

 

 

483

 

 

 

605

 

 

 

 

 

 

516

 

Agriculture Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Non-Real Estate

 

 

1

 

 

 

103

 

 

 

 

 

 

6

 

Agriculture Non-Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

Sanitary & Improvement Districts

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Auto

 

 

 

 

 

3

 

 

 

 

 

 

 

Consumer Other

 

 

 

 

 

 

 

 

 

 

 

 

Non 1–4 Family Construction and Land Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

1–4 Family Residential

 

 

338

 

 

 

366

 

 

 

193

 

 

 

303

 

Multi-family Residential

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

42

 

Agriculture Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Non-Real Estate

 

 

28

 

 

 

43

 

 

 

28

 

 

 

35

 

Agriculture Non-Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Auto

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Other

 

 

 

 

 

 

 

 

 

 

 

2

 

Non 1–4 Family Construction and Land Development

 

 

 

 

 

 

 

 

 

 

 

 

Total impaired loans

 

$

850

 

 

$

1,120

 

 

$

221

 

 

$

904

 

Summary of Loans Individually Evaluated

Collateral dependent loans individually evaluated for purposes of the ACL by collateral type were as follows at June 30, 2023:

 

(dollars in thousands)

 

Real Estate

 

 

Other

 

Portfolio Segment

 

 

 

 

 

 

Real Estate - Construction

 

$

 

 

$

 

Real Estate - Commercial

 

 

470

 

 

 

 

Real Estate - Residential

 

 

110

 

 

 

 

Commercial Non-RE

 

 

 

 

 

26

 

Agricultural

 

 

 

 

 

 

Other Consumer

 

 

 

 

 

 

Land Development and SIDs

 

 

 

 

 

 

Total impaired loans

 

$

580

 

 

$

26

 

Summary of Risk Category of Loans

Based on the most recent analysis performed, the risk category of loans by class and year of origination is as follows:

 

(dollars in thousands)

 

Term Loans by Origination Year

 

 

Revolving

 

 

 

 

 

 

2023

 

 

2022

 

 

2021

 

 

Prior

 

 

Loans

 

 

Total

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

6,634

 

 

$

5,516

 

 

$

5,731

 

 

$

2,611

 

 

$

 

 

$

20,492

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Real Estate - Construction

 

$

6,634

 

 

$

5,516

 

 

$

5,731

 

 

$

2,611

 

 

$

 

 

$

20,492

 

Current year-to-date gross write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

10,357

 

 

 

26,342

 

 

 

19,672

 

 

 

39,407

 

 

 

6,526

 

 

$

102,304

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

2,907

 

 

 

 

 

 

2,907

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Real Estate - Commercial

 

$

10,357

 

 

$

26,342

 

 

$

19,672

 

 

$

42,314

 

 

$

6,526

 

 

$

105,211

 

Current year-to-date gross write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

6,383

 

 

 

32,394

 

 

 

55,240

 

 

 

42,659

 

 

 

11,707

 

 

$

148,383

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

464

 

 

 

 

 

 

464

 

Doubtful

 

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

90

 

Total Real Estate - Residential

 

$

6,473

 

 

$

32,394

 

 

$

55,240

 

 

$

43,123

 

 

$

11,707

 

 

$

148,937

 

Current year-to-date gross write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial - Non Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

1,398

 

 

 

8,675

 

 

 

3,303

 

 

 

12,945

 

 

 

2,897

 

 

$

29,218

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

142

 

 

 

 

 

 

475

 

 

 

 

 

 

617

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

25

 

 

 

 

 

 

25

 

Total Commercial - Non Real Estate

 

$

1,398

 

 

$

8,817

 

 

$

3,303

 

 

$

13,445

 

 

$

2,897

 

 

$

29,860

 

Current year-to-date gross write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

1,504

 

 

 

3,562

 

 

 

2,742

 

 

 

4,420

 

 

 

7,313

 

 

$

19,541

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total - Agricultural

 

$

1,504

 

 

$

3,562

 

 

$

2,742

 

 

$

4,420

 

 

$

7,313

 

 

$

19,541

 

Current year-to-date gross write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

13,435

 

 

 

7,023

 

 

 

1,298

 

 

 

4,129

 

 

 

 

 

$

25,885

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

18

 

 

 

 

 

 

 

 

 

18

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Consumer

 

$

13,435

 

 

$

7,023

 

 

$

1,316

 

 

$

4,129

 

 

$

 

 

$

25,903

 

Current year-to-date gross write-offs

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Land Development and SIDs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

 

504

 

 

 

6,784

 

 

 

6,131

 

 

 

1,821

 

 

 

200

 

 

$

15,440

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Doubtful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Land Development and SIDs

 

$

504

 

 

$

6,784

 

 

$

6,131

 

 

$

1,821

 

 

$

200

 

 

$

15,440

 

Current year-to-date gross write-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

40,305

 

 

$

90,438

 

 

$

94,135

 

 

$

111,863

 

 

$

28,643

 

 

$

365,384

 

The Association’s loan classifications as of March 31, 2023, are as follows:

 

(dollars in thousands)

 

 

 

 

Special

 

 

 

 

 

 

 

 

Total

 

 

 

Pass

 

 

Mention

 

 

Substandard

 

 

Doubtful

 

 

Loans

 

1–4 Family Residential

 

$

118,839

 

 

$

 

 

$

771

 

 

$

 

 

$

119,610

 

Multi-Family Residential

 

 

34,296

 

 

 

 

 

 

 

 

 

 

 

 

34,296

 

Commercial Real Estate

 

 

99,367

 

 

 

 

 

 

3,079

 

 

 

 

 

 

102,446

 

Agriculture Real Estate

 

 

9,245

 

 

 

 

 

 

 

 

 

 

 

 

9,245

 

Commercial Non-Real Estate

 

 

29,390

 

 

 

 

 

 

711

 

 

 

 

 

 

30,101

 

Agriculture Non-Real Estate

 

 

8,921

 

 

 

 

 

 

 

 

 

 

 

 

8,921

 

Sanitary & Improvement Districts

 

 

5,468

 

 

 

 

 

 

 

 

 

 

 

 

5,468

 

Consumer Auto

 

 

5,591

 

 

 

 

 

 

31

 

 

 

 

 

 

5,622

 

Consumer Other

 

 

14,334

 

 

 

 

 

 

 

 

 

 

 

 

14,334

 

Non 1–4 Family Construction & Land Development

 

 

23,644

 

 

 

 

 

 

 

 

 

 

 

 

23,644

 

Total

 

$

349,095

 

 

$

 

 

$

4,592

 

 

$

 

 

$

353,687

 

Summary of Loans on Nonaccrual Status

The following table presents certain information with respect to loans on nonaccrual status as of and for the three months ended June 30, 2023:

 

(dollars in thousands)

 

Nonaccrual

 

 

Nonaccrual

 

 

Nonaccrual

 

 

Nonaccrual

 

 

Interest Income

 

 

 

Loans Beginning

 

 

Loans End

 

 

with no Allowance

 

 

with Allowance

 

 

Recognized

 

June 30, 2023

 

of Period

 

 

of Period

 

 

for Credit Loss

 

 

for Credit Loss

 

 

During the Period

 

Real Estate - Commercial

 

$

484

 

 

$

470

 

 

$

470

 

 

$

 

 

$

10

 

Real Estate- Residential

 

 

338

 

 

 

110

 

 

 

20

 

 

 

90

 

 

 

2

 

Commerical Non-Real Estate

 

 

28

 

 

 

26

 

 

 

1

 

 

 

25

 

 

 

2

 

Other Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

850

 

 

$

606

 

 

$

491

 

 

$

115

 

 

$

14

 

 

The following table presents the recorded investment in nonaccrual and loans past due 90 days or more and still on accrual, by class as of March 31, 2023:

 

(dollars in thousands)

 

 

 

 

Loans Past

 

 

 

 

 

 

Due 90 Days

 

 

 

 

 

 

or More Still

 

March 31, 2023

 

Nonaccrual

 

 

Accruing

 

1-4 Family Residential

 

$

338

 

 

$

 

Commercial Real Estate

 

 

484

 

 

 

 

Commercial Non-Real Estate

 

 

28

 

 

 

 

Consumer Other

 

 

 

 

 

178

 

Total

 

$

850

 

 

$

178

 

Schedule of Aging Analysis of Contractually Past Due Loans

The following is an aging analysis of the contractually past due loans as of June 30, 2023:

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Past

 

 

 

 

 

 

 

 

 

Greater than

 

 

 

 

 

 

 

 

 

 

 

Due 90 Days

 

 

 

30–59 Days

 

 

60–89 Days

 

 

89 Days

 

 

Total

 

 

Loans Not

 

 

 

 

 

or More Still

 

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Total

 

 

Accruing

 

Real Estate - Construction

 

$

 

 

$

 

 

$

 

 

$

 

 

$

20,492

 

 

$

20,492

 

 

$

 

Real Estate - Commercial

 

 

321

 

 

 

 

 

 

 

 

 

321

 

 

 

104,890

 

 

 

105,211

 

 

 

 

Real Estate - Residential

 

 

91

 

 

 

179

 

 

 

67

 

 

 

337

 

 

 

148,600

 

 

 

148,937

 

 

 

 

Commercial Non-RE

 

 

 

 

 

 

 

 

25

 

 

 

25

 

 

 

29,835

 

 

 

29,860

 

 

 

 

Agricultural

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,541

 

 

 

19,541

 

 

 

 

Other Consumer

 

 

86

 

 

 

453

 

 

 

137

 

 

 

676

 

 

 

25,227

 

 

 

25,903

 

 

 

137

 

Land Development and SIDs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,440

 

 

 

15,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

498

 

 

$

632

 

 

$

229

 

 

$

1,359

 

 

$

364,025

 

 

$

365,384

 

 

$

137

 

 

The following is an aging analysis of the contractually past due loans as of March 31, 2023:

 

(dollars in thousands)

 

 

 

 

 

 

 

Greater than

 

 

 

 

 

 

 

 

 

 

 

 

30–59 Days

 

 

60–89 Days

 

 

89 Days

 

 

Total

 

 

Loan Not

 

 

 

 

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Total

 

1-4 Family Residential

 

$

585

 

 

$

 

 

$

 

 

$

585

 

 

$

119,025

 

 

$

119,610

 

Multi Family Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34,296

 

 

 

34,296

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

102,446

 

 

 

102,446

 

Agricultural RE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,245

 

 

 

9,245

 

Commercial Non-RE

 

 

 

 

 

 

 

 

28

 

 

 

28

 

 

 

30,073

 

 

 

30,101

 

Agricultural Non-RE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,921

 

 

 

8,921

 

SIDS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,468

 

 

 

5,468

 

Consumer Auto

 

 

43

 

 

 

24

 

 

 

 

 

 

67

 

 

 

5,555

 

 

 

5,622

 

Consumer Other

 

 

344

 

 

 

 

 

 

178

 

 

 

522

 

 

 

13,812

 

 

 

14,334

 

Non 1-4 Family Construc and Land Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,644

 

 

 

23,644

 

Total

 

$

972

 

 

$

24

 

 

$

206

 

 

$

1,202

 

 

$

352,485

 

 

$

353,687

 

v3.23.3
Premises And Equipment (Tables)
3 Months Ended
Jun. 30, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Premises and Equipment

Premises and equipment at June 30, 2023 and March 31, 2023, consist of the following:

 

(dollars in thousands)

 

June 30, 2023

 

 

March 31, 2023

 

Land

 

$

828

 

 

$

818

 

Buildings and leasehold improvements

 

 

8,887

 

 

 

8,855

 

Equipment

 

 

3,311

 

 

 

3,150

 

Automobiles

 

 

136

 

 

 

48

 

Computer software

 

 

1,031

 

 

 

1,031

 

Total cost

 

 

14,193

 

 

 

13,902

 

Less accumulated depreciation

 

 

10,161

 

 

 

9,798

 

Total premises and equipment

 

$

4,032

 

 

$

4,104

 

v3.23.3
Deposits (Tables)
3 Months Ended
Jun. 30, 2023
Deposits [Abstract]  
Summary of Certificates of Deposit

A summary of certificates of deposit included in interest bearing deposits in the consolidated statements of financial condition by maturity at June 30, 2023, is as follows:

 

(dollars in thousands)

 

 

 

For the 12 Months Ended June 30

 

Amount

 

2024

 

$

81,061

 

2025

 

 

6,198

 

2026

 

 

2,480

 

2027

 

 

1,395

 

2028+

 

 

210

 

Total certificate accounts

 

$

91,344

 

v3.23.3
Regulatory Capital Requirements (Tables)
3 Months Ended
Jun. 30, 2023
Schedule of Actual Capital Amounts and Ratios

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

 

(dollars in thousands)

 

Actual

 

 

Minimum Required for Capital Adequacy Purposes

 

 

Minimum Required To be Well-Capitalized Under Prompt Corrective Action Provisions

 

As of June 30, 2023

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total Capital (to Risk- Weighted Assets)

 

$

48,373

 

 

 

13.58

%

 

$

28,498

 

 

 

8.00

%

 

$

35,622

 

 

 

10.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Risk- Weighted Assets)

 

$

43,903

 

 

 

12.32

%

 

$

21,373

 

 

 

6.00

%

 

$

28,498

 

 

 

8.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital (to Risk-Weighted Assets)

 

$

43,903

 

 

 

12.32

%

 

$

16,030

 

 

 

4.50

%

 

$

23,154

 

 

 

6.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Average Assets)

 

$

43,903

 

 

 

10.07

%

 

$

17,439

 

 

 

4.00

%

 

$

21,798

 

 

 

5.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2023

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

 

Amount

 

 

Ratio

 

Total Capital (to Risk- Weighted Assets)

 

$

47,809

 

 

 

13.45

%

 

$

28,432

 

 

 

8.00

%

 

$

35,540

 

 

 

10.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Risk- Weighted Assets)

 

$

43,355

 

 

 

12.20

%

 

$

21,324

 

 

 

6.00

%

 

$

28,432

 

 

 

8.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital (to Risk-Weighted Assets)

 

$

43,355

 

 

 

12.20

%

 

$

15,993

 

 

 

4.50

%

 

$

23,101

 

 

 

6.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Average Assets)

 

$

43,355

 

 

 

10.12

%

 

$

17,139

 

 

 

4.00

%

 

$

21,424

 

 

 

5.00

%

v3.23.3
Mortgage Servicing (Tables)
3 Months Ended
Jun. 30, 2023
Transfers and Servicing [Abstract]  
Summary of Activity in Mortgage Servicing Rights Using Amortized Cost

Activity for mortgage servicing rights measured using the amortized cost method was as follows:

 

(dollars in thousands)

 

June 30, 2023

 

 

March 31, 2023

 

Mortgage servicing rights

 

 

 

 

 

 

Balance at beginning of year

 

$

434

 

 

$

563

 

Additions

 

 

27

 

 

 

33

 

Repayments and amortization

 

 

(41

)

 

 

(162

)

Balance at end of quarter

 

$

420

 

 

$

434

 

v3.23.3
Fair Value Of Financial Instruments (Tables)
3 Months Ended
Jun. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Summary of Carrying Amounts and Estimated Fair Values by Fair Value Hierarchy of Certain Financial Instruments

The carrying amounts and estimated fair values by fair value hierarchy of certain financial instruments are as follows:

 

(dollars in thousands)

 

Measurements at Reporting Date Using

 

 

 

Carrying
Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Estimated
Fair Value

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

359,740

 

 

$

 

 

$

 

 

$

322,568

 

 

$

322,568

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

319,470

 

 

$

 

 

$

270,658

 

 

$

 

 

$

270,658

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net

 

$

348,337

 

 

$

 

 

$

 

 

$

316,169

 

 

$

316,169

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

317,704

 

 

$

 

 

$

272,270

 

 

$

 

 

$

272,270

 

 

Fair Value, Recurring  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Summary of Fair Value, Asset Measured on Recurring and Nonrecurring Basis The Association does not have any other assets or liabilities measured at fair value on a recurring basis as of June 30, 2023 or March 31, 2023.

 

(dollars in thousands)

 

Fair Value Measurements at Reporting Date Using

 

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Securities Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Backed Securities

 

 

51,075

 

 

 

 

 

 

51,075

 

 

 

 

Municipal Bonds

 

 

7,561

 

 

 

 

 

 

7,561

 

 

 

 

Total

 

$

58,636

 

 

$

 

 

$

58,636

 

 

$

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Securities Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Backed Securities

 

 

50,136

 

 

 

 

 

 

50,136

 

 

 

 

Municipal Bonds

 

 

7,706

 

 

 

 

 

 

7,706

 

 

 

 

Total

 

$

57,842

 

 

$

 

 

$

57,842

 

 

$

 

Fair Value, Nonrecurring  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Summary of Fair Value, Asset Measured on Recurring and Nonrecurring Basis

The following table presents the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2023 and March 31, 2023:

 

(dollars in thousands)

 

Fair Value Measurements at Reporting Date Using

 

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

492

 

 

$

 

 

$

 

 

$

492

 

Totals

 

$

492

 

 

$

 

 

$

 

 

$

492

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

629

 

 

$

 

 

$

 

 

$

629

 

Totals

 

$

629

 

 

$

 

 

$

 

 

$

629

 

v3.23.3
Accumulated Other Comprehensive Loss (Tables)
3 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss for the three months ended June 30, 2023 and 2022 are as follows:

 

(dollars in thousands)

 

Unrealized Gains
and Losses on
Available-for-
Sale Debt
Securities

 

 

Defined Benefit
Pension Plans

 

 

Total

 

Three Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

(4,718

)

 

$

(389

)

 

$

(5,107

)

Other comprehensive income (loss)

 

 

(506

)

 

 

 

 

 

(506

)

Balance at end of period

 

$

(5,224

)

 

$

(389

)

 

$

(5,613

)

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2022

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

(2,033

)

 

$

(1,692

)

 

$

(3,725

)

Other comprehensive income (loss)

 

 

(1,648

)

 

 

18

 

 

 

(1,630

)

Balance at end of period

 

$

(3,681

)

 

$

(1,674

)

 

$

(5,355

)

Schedule of Reclassifications out of Accumulated Other Comprehensive Loss

The following table summarizes the significant amounts reclassified out of each component of AOCI for the three months ended June 30, 2023 and 2022:

 

(dollars in thousands)

 

Three Months Ended June 30,

 

 

 

 

 

2023

 

 

2022

 

 

 

 

 

Amount Reclassified
from AOCI

 

 

 

Details about AOCI Components

 

 

 

 

 

 

 

 

Unrealized gains and losses on available-for-sale securities

 

$

(642

)

 

$

(2,085

)

 

Debt Securities gains (losses), net

 

 

136

 

 

 

437

 

 

Income tax (expense) benefit

 

$

(506

)

 

$

(1,648

)

 

Net income (loss)

 

 

 

 

 

 

 

 

 

Amortization of defined benefit pension items

 

 

 

 

 

 

 

 

Actuarial gains (losses)

 

$

 

 

$

20

 

 

Salaries and employee benefits

 

 

 

 

 

(2

)

 

Income tax (expense) benefit

 

$

 

 

$

18

 

 

Net income (loss)

 

 

 

 

 

 

 

 

 

Total reclassification for the period

 

$

(506

)

 

$

(1,630

)

 

Net income (loss)

v3.23.3
Leases (Tables)
3 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Schedule of the Future Undiscounted Lease Payments

The following table shows the future undiscounted lease payments required under the leases described above as of June 30, 2023:

 

12 Months Ending June 30,

 

Operating Leases

 

2024

 

$

76

 

2025

 

 

60

 

2026

 

 

52

 

2027

 

 

40

 

2028

 

 

37

 

Thereafter

 

 

121

 

Total undiscounted lease payments

 

$

386

 

Less: Imputed interest

 

 

(34

)

Net lease liability

 

$

352

 

v3.23.3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
3 Months Ended
Jun. 30, 2023
Apr. 01, 2023
Mar. 31, 2023
Summary of Significant Accounting Policies [Line Items]      
Retained earnings $ 44,317,000   $ 43,773,000
Held to maturity, allowance for credit loss 0    
Trading debt securities 0   0
Assets 450,407,000   437,792,000
Liabilities 411,703,000   $ 399,126,000
Central Plains Bancshares, Inc.      
Summary of Significant Accounting Policies [Line Items]      
Assets 0    
Liabilities $ 0    
Percentage of common stock will be held by public after conversion and offering. 100.00%    
Minimum      
Summary of Significant Accounting Policies [Line Items]      
Estimated useful lives 3 years    
Consumer portfolio adjusted amortized period 3 years    
Consumer portfolio amortized terms 3 years    
Maximum      
Summary of Significant Accounting Policies [Line Items]      
Estimated useful lives 15 years    
Consumer portfolio adjusted amortized period 5 years    
Consumer portfolio amortized terms 5 years    
Cumulative Effect of Adoption, Adjustment      
Summary of Significant Accounting Policies [Line Items]      
Retained earnings   $ 402,000  
ASU 2016-13      
Summary of Significant Accounting Policies [Line Items]      
Change in accounting principle, accounting standards update, adopted true    
Change in accounting principle, accounting standards update, adoption date Apr. 01, 2023    
Increase in allowance for credit losses on loans $ 299,000    
ASU 2016-13 | Unfunded Loan Commitment      
Summary of Significant Accounting Policies [Line Items]      
Allowance for credit losses $ 210,000    
ASU 2022-02      
Summary of Significant Accounting Policies [Line Items]      
Change in accounting principle, accounting standards update, adopted true    
Change in accounting principle, accounting standards update, adoption date Apr. 01, 2023    
v3.23.3
Investment Securities - Summary of Investment Securities Available for Sale (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Debt Securities, Available-for-Sale [Line Items]    
Available for sale, Amortized Cost $ 65,250 $ 63,814
Available for sale, Gross Unrealized Gains 15 31
Available for sale, Gross Unrealized Losses (6,629) (6,003)
Available for sale, Fair Value 58,636 57,842
FHLMC Bonds    
Debt Securities, Available-for-Sale [Line Items]    
Available for sale, Amortized Cost 26,652 25,446
Available for sale, Gross Unrealized Gains 5 13
Available for sale, Gross Unrealized Losses (2,432) (2,203)
Available for sale, Fair Value 24,225 23,256
GNMA Bonds    
Debt Securities, Available-for-Sale [Line Items]    
Available for sale, Amortized Cost 3,964 2,648
Available for sale, Gross Unrealized Losses (143) (58)
Available for sale, Fair Value 3,821 2,590
FNMA Bonds    
Debt Securities, Available-for-Sale [Line Items]    
Available for sale, Amortized Cost 25,641 26,726
Available for sale, Gross Unrealized Gains 10 17
Available for sale, Gross Unrealized Losses (2,622) (2,453)
Available for sale, Fair Value 23,029 24,290
Municipal Bonds    
Debt Securities, Available-for-Sale [Line Items]    
Available for sale, Amortized Cost 8,993 8,994
Available for sale, Gross Unrealized Gains   1
Available for sale, Gross Unrealized Losses (1,432) (1,289)
Available for sale, Fair Value $ 7,561 $ 7,706
v3.23.3
Investment Securities - Summary of Investment Securities Held to Maturity (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Schedule of Held-to-Maturity Securities [Line Items]    
Held to maturity, Amortized Cost $ 381 $ 422
Held to maturity, Gross Unrealized Gains   1
Held to maturity, Gross Unrealized Losses (8) (7)
Held to maturity, Fair Value 373 416
FHLMC Bonds    
Schedule of Held-to-Maturity Securities [Line Items]    
Held to maturity, Amortized Cost 111 116
Held to maturity, Gross Unrealized Losses (2) (2)
Held to maturity, Fair Value 109 114
GNMA Bonds    
Schedule of Held-to-Maturity Securities [Line Items]    
Held to maturity, Amortized Cost 71 74
Held to maturity, Gross Unrealized Losses (3) (1)
Held to maturity, Fair Value 68 73
FNMA Bonds    
Schedule of Held-to-Maturity Securities [Line Items]    
Held to maturity, Amortized Cost 199 232
Held to maturity, Gross Unrealized Gains   1
Held to maturity, Gross Unrealized Losses (3) (4)
Held to maturity, Fair Value $ 196 $ 229
v3.23.3
Investment Securities - Summary of Debt Securities Available for Sale and Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Estimated Fair Value    
Less than 12 Months $ 11,011 $ 11,605
12 Months or Greater 45,019 39,211
Total 56,030 50,816
Unrealized Losses    
Less than 12 Months (155) (268)
12 Months or Greater (6,474) (5,735)
Total (6,629) (6,003)
FHLMC Bonds    
Estimated Fair Value    
Less than 12 Months 4,468 4,714
12 Months or Greater 18,667 16,482
Total 23,135 21,196
Unrealized Losses    
Less than 12 Months (70) (133)
12 Months or Greater (2,362) (2,070)
Total (2,432) (2,203)
GNMA Bonds    
Estimated Fair Value    
Less than 12 Months 1,723 2,576
12 Months or Greater 2,098 14
Total 3,821 2,590
Unrealized Losses    
Less than 12 Months (50) (57)
12 Months or Greater (93) (1)
Total (143) (58)
FNMA Bonds    
Estimated Fair Value    
Less than 12 Months 3,113 4,315
12 Months or Greater 18,400 17,027
Total 21,513 21,342
Unrealized Losses    
Less than 12 Months (24) (78)
12 Months or Greater (2,598) (2,375)
Total (2,622) (2,453)
Municipal Bonds    
Estimated Fair Value    
Less than 12 Months 1,707  
12 Months or Greater 5,854 5,688
Total 7,561 5,688
Unrealized Losses    
Less than 12 Months (11)  
12 Months or Greater (1,421) (1,289)
Total $ (1,432) $ (1,289)
v3.23.3
Investment Securities - Additional Information (Details) - USD ($)
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Mar. 31, 2023
Debt Securities, Available-for-Sale [Line Items]      
Investment securities, Amortized cost $ 65,250,000   $ 63,814,000
Available for sale, Fair Value 58,636,000   57,842,000
Sales of available-for-sale securities 0 $ 0  
Public, Consumer, and Commercial Deposits      
Debt Securities, Available-for-Sale [Line Items]      
Investment securities, Amortized cost 34,450,000   34,149,000
Available for sale, Fair Value $ 32,576,000   $ 31,935,000
v3.23.3
Investment Securities - Schedule of Amortized Cost and Fair Value of Available for sale Investment Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Investment Securities Available-for-sale Amortized cost    
Due less than one year $ 60  
Due after one year through five years 2,443  
Due after five years through ten years 1,803  
Due after ten years 4,687  
Mortgage-backed securities and collateralized mortgage obligations 56,257  
Available for sale, Amortized Cost 65,250 $ 63,814
Investment Securities Available-for-sale, Estimated Fair Value    
Due less than one year 59  
Due after one year through five years 2,345  
Due after five years through ten years 1,565  
Due after ten years 3,592  
Mortgage-backed securities and collateralized mortgage obligations 51,075  
Total $ 58,636 $ 57,842
v3.23.3
Loans and Allowance for Credit Losses - Summary of Loans Receivable and Related Reclassifications (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Financing Receivable, Past Due [Line Items]        
Total Loans $ 365,384 $ 353,687    
Allowance for credit losses (5,699) (5,412) $ (5,080) $ (4,928)
Net deferred orig. costs & fees 55      
Loans-net 359,740 348,337    
Real Estate        
Financing Receivable, Past Due [Line Items]        
Allowance for credit losses (5,699) (5,412)    
Real Estate | Construction        
Financing Receivable, Past Due [Line Items]        
Total Loans 20,492      
Allowance for credit losses (384) (334)    
Real Estate | Commercial        
Financing Receivable, Past Due [Line Items]        
Total Loans 105,211 102,446    
Allowance for credit losses (1,200) (2,048) (1,890) (1,845)
Real Estate | Residential        
Financing Receivable, Past Due [Line Items]        
Total Loans 148,937      
Allowance for credit losses (1,966) (1,286)    
Construction and Land Development | Non-1-4 Family        
Financing Receivable, Past Due [Line Items]        
Total Loans   23,644    
Allowance for credit losses   (402) (382) (357)
Residential | 1-4 Family        
Financing Receivable, Past Due [Line Items]        
Total Loans   119,610    
Allowance for credit losses   (686) (629) (636)
Residential | Multi-Family        
Financing Receivable, Past Due [Line Items]        
Total Loans   34,296    
Allowance for credit losses   (670) (508) (481)
Commercial | Non-Real Estate        
Financing Receivable, Past Due [Line Items]        
Total Loans 29,860 30,101    
Allowance for credit losses (1,261) (915) (969) (930)
Agriculture        
Financing Receivable, Past Due [Line Items]        
Total Loans 19,541      
Allowance for credit losses (246) (484)    
Agriculture | Real Estate        
Financing Receivable, Past Due [Line Items]        
Total Loans   9,245    
Allowance for credit losses   (203)    
Agriculture | Non-Real Estate        
Financing Receivable, Past Due [Line Items]        
Total Loans   8,921    
Allowance for credit losses   (281) (281) (281)
Consumer        
Financing Receivable, Past Due [Line Items]        
Total Loans 25,903      
Allowance for credit losses (383) (157)    
Consumer | Auto        
Financing Receivable, Past Due [Line Items]        
Total Loans   5,622    
Allowance for credit losses   (44) (63) (64)
Consumer | Other        
Financing Receivable, Past Due [Line Items]        
Total Loans   14,334    
Allowance for credit losses   (113) (105) (71)
Land Development and SIDs        
Financing Receivable, Past Due [Line Items]        
Total Loans 15,440      
Allowance for credit losses $ (259) (188)    
Sanitary & Improvement Districts        
Financing Receivable, Past Due [Line Items]        
Total Loans   5,468    
Allowance for credit losses   (50) $ (40) $ (50)
Pre Adoption        
Financing Receivable, Past Due [Line Items]        
Total Loans   353,687    
Allowance for credit losses   (5,412)    
Net deferred orig. costs & fees   62    
Loans-net   348,337    
Pre Adoption | Real Estate | Commercial        
Financing Receivable, Past Due [Line Items]        
Total Loans   102,446    
Pre Adoption | Construction and Land Development | Non-1-4 Family        
Financing Receivable, Past Due [Line Items]        
Total Loans   23,644    
Pre Adoption | Residential | 1-4 Family        
Financing Receivable, Past Due [Line Items]        
Total Loans   119,610    
Pre Adoption | Residential | Multi-Family        
Financing Receivable, Past Due [Line Items]        
Total Loans   34,296    
Pre Adoption | Commercial | Non-Real Estate        
Financing Receivable, Past Due [Line Items]        
Total Loans   30,101    
Pre Adoption | Agriculture | Real Estate        
Financing Receivable, Past Due [Line Items]        
Total Loans   9,245    
Pre Adoption | Agriculture | Non-Real Estate        
Financing Receivable, Past Due [Line Items]        
Total Loans   8,921    
Pre Adoption | Consumer | Auto        
Financing Receivable, Past Due [Line Items]        
Total Loans   5,622    
Pre Adoption | Consumer | Other        
Financing Receivable, Past Due [Line Items]        
Total Loans   14,334    
Pre Adoption | Sanitary & Improvement Districts        
Financing Receivable, Past Due [Line Items]        
Total Loans   5,468    
The Effect of Adoption        
Financing Receivable, Past Due [Line Items]        
Allowance for credit losses   (299)    
Loans-net   (299)    
The Effect of Adoption | Real Estate | Construction        
Financing Receivable, Past Due [Line Items]        
Total Loans   19,301    
The Effect of Adoption | Real Estate | Residential        
Financing Receivable, Past Due [Line Items]        
Total Loans   148,486    
The Effect of Adoption | Construction and Land Development | Non-1-4 Family        
Financing Receivable, Past Due [Line Items]        
Total Loans   (23,644)    
The Effect of Adoption | Residential | 1-4 Family        
Financing Receivable, Past Due [Line Items]        
Total Loans   (119,610)    
The Effect of Adoption | Residential | Multi-Family        
Financing Receivable, Past Due [Line Items]        
Total Loans   (34,296)    
The Effect of Adoption | Agriculture        
Financing Receivable, Past Due [Line Items]        
Total Loans   18,166    
The Effect of Adoption | Agriculture | Real Estate        
Financing Receivable, Past Due [Line Items]        
Total Loans   (9,245)    
The Effect of Adoption | Agriculture | Non-Real Estate        
Financing Receivable, Past Due [Line Items]        
Total Loans   (8,921)    
The Effect of Adoption | Consumer        
Financing Receivable, Past Due [Line Items]        
Total Loans   19,956    
The Effect of Adoption | Consumer | Auto        
Financing Receivable, Past Due [Line Items]        
Total Loans   (5,622)    
The Effect of Adoption | Consumer | Other        
Financing Receivable, Past Due [Line Items]        
Total Loans   (14,334)    
The Effect of Adoption | Land Development and SIDs        
Financing Receivable, Past Due [Line Items]        
Total Loans   15,231    
The Effect of Adoption | Sanitary & Improvement Districts        
Financing Receivable, Past Due [Line Items]        
Total Loans   (5,468)    
Post Adoption        
Financing Receivable, Past Due [Line Items]        
Total Loans   353,687    
Allowance for credit losses   (5,711)    
Net deferred orig. costs & fees   62    
Loans-net   348,038    
Post Adoption | Real Estate | Construction        
Financing Receivable, Past Due [Line Items]        
Total Loans   19,301    
Post Adoption | Real Estate | Commercial        
Financing Receivable, Past Due [Line Items]        
Total Loans   102,446    
Post Adoption | Real Estate | Residential        
Financing Receivable, Past Due [Line Items]        
Total Loans   148,486    
Post Adoption | Commercial | Non-Real Estate        
Financing Receivable, Past Due [Line Items]        
Total Loans   30,101    
Post Adoption | Agriculture        
Financing Receivable, Past Due [Line Items]        
Total Loans   18,166    
Post Adoption | Consumer        
Financing Receivable, Past Due [Line Items]        
Total Loans   19,956    
Post Adoption | Land Development and SIDs        
Financing Receivable, Past Due [Line Items]        
Total Loans   $ 15,231    
v3.23.3
Loans and Allowance for Credit Losses - Additional Information (Details) - USD ($)
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Mar. 31, 2023
Financing Receivable, Past Due [Line Items]      
Loans receivable from related parties $ 75,000   $ 76,000
Modifications on loans 0 $ 0  
Federal Home Loan Mortgage Corp      
Financing Receivable, Past Due [Line Items]      
Loans receivable from related parties $ 666,000   $ 679,000
v3.23.3
Loans and Allowance for Credit Losses - Schedule of Changes in Allowance (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance $ 5,412 $ 4,928
Provision for (Recovery of) Credit Losses (27) 152
Ending Allowance Balance 5,699 5,080
Agricultural RE    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance   213
Ending Allowance Balance   213
Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 5,412  
Impact of ASC326 Adoption 299  
Provision for (Recovery of) Credit Losses (31)  
Loans Charged off (1)  
Recoveries 20  
Ending Allowance Balance 5,699  
Real Estate | Construction    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 334  
Impact of ASC326 Adoption 28  
Provision for (Recovery of) Credit Losses 22  
Ending Allowance Balance 384  
Real Estate | Commercial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 2,048 1,845
Impact of ASC326 Adoption (904)  
Provision for (Recovery of) Credit Losses 56 45
Ending Allowance Balance 1,200 1,890
Real Estate | Residential    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 1,286  
Impact of ASC326 Adoption 775  
Provision for (Recovery of) Credit Losses (95)  
Ending Allowance Balance 1,966  
Commercial | Non-Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 915 930
Impact of ASC326 Adoption 450  
Provision for (Recovery of) Credit Losses (122) 39
Recoveries 18  
Ending Allowance Balance 1,261 969
Agriculture    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 484  
Impact of ASC326 Adoption (255)  
Provision for (Recovery of) Credit Losses 17  
Ending Allowance Balance 246  
Agriculture | Non-Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 281 281
Ending Allowance Balance   281
Land Development and SIDs    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 188  
Impact of ASC326 Adoption 67  
Provision for (Recovery of) Credit Losses 3  
Recoveries 1  
Ending Allowance Balance 259  
Residential | 1-4 Family    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 686 636
Provision for (Recovery of) Credit Losses   (7)
Ending Allowance Balance   629
Residential | Multi-Family    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 670 481
Provision for (Recovery of) Credit Losses   27
Ending Allowance Balance   508
SIDS    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 50 50
Provision for (Recovery of) Credit Losses   (10)
Ending Allowance Balance   40
Consumer    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 157  
Impact of ASC326 Adoption 138  
Provision for (Recovery of) Credit Losses 88  
Loans Charged off (1)  
Recoveries 1  
Ending Allowance Balance 383  
Consumer | Auto    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 44 64
Provision for (Recovery of) Credit Losses   (1)
Ending Allowance Balance   63
Consumer | Other    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance 113 71
Provision for (Recovery of) Credit Losses   34
Ending Allowance Balance   105
Construction and Land Development | Non-1-4 Family    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Beginning Allowance Balance $ 402 357
Provision for (Recovery of) Credit Losses   25
Ending Allowance Balance   $ 382
v3.23.3
Loans and Allowance for Credit Losses - Schedule of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segments and based on Impairment Method (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2022
Mar. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]        
Indivdually Evaluated for Impairment   $ 221    
Collectively Evaluated for Impairment   5,191    
Ending Allowance Balance $ 5,699 5,412 $ 5,080 $ 4,928
Residential | 1-4 Family        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Indivdually Evaluated for Impairment   193    
Collectively Evaluated for Impairment   493    
Ending Allowance Balance   686 629 636
Residential | Multi-Family        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Collectively Evaluated for Impairment   670    
Ending Allowance Balance   670 508 481
Real Estate        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Ending Allowance Balance 5,699 5,412    
Real Estate | Commercial        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Collectively Evaluated for Impairment   2,048    
Ending Allowance Balance 1,200 2,048 1,890 1,845
Commercial | Non-Real Estate        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Indivdually Evaluated for Impairment   28    
Collectively Evaluated for Impairment   887    
Ending Allowance Balance 1,261 915 969 930
Agriculture        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Ending Allowance Balance 246 484    
Agriculture | Real Estate        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Collectively Evaluated for Impairment   203    
Ending Allowance Balance   203    
Agriculture | Non-Real Estate        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Collectively Evaluated for Impairment   281    
Ending Allowance Balance   281 281 281
SIDS        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Collectively Evaluated for Impairment   50    
Ending Allowance Balance   50 40 50
Consumer        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Ending Allowance Balance $ 383 157    
Consumer | Auto        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Collectively Evaluated for Impairment   44    
Ending Allowance Balance   44 63 64
Consumer | Other        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Collectively Evaluated for Impairment   113    
Ending Allowance Balance   113 105 71
Construction and Land Development | Non-1-4 Family        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Collectively Evaluated for Impairment   402    
Ending Allowance Balance   $ 402 $ 382 $ 357
v3.23.3
Loans and Allowance for Credit Losses - Summary of Impaired Loans (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2023
Jun. 30, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually Evaluated for Impairment $ 850  
Collectively Evaluated For Impairment 352,837  
Total loans 353,687 $ 365,384
With an allowance recorded, Specific Allowance 221  
Recorded Balance 850  
Unpaid Principal Balance 1,120  
Average Investment in Impaired Loans 904  
Residential | 1-4 Family    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually Evaluated for Impairment 338  
Collectively Evaluated For Impairment 119,272  
Total loans 119,610  
With an allowance recorded, Recorded Balance 338  
With an allowance recorded, Unpaid Principal Balance 366  
With an allowance recorded, Specific Allowance 193  
With an allowance recorded, Average Investment in Impaired Loans 303  
Residential | Multi-Family    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Collectively Evaluated For Impairment 34,296  
Total loans 34,296  
Agriculture    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   19,541
Agriculture | Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Collectively Evaluated For Impairment 9,245  
Total loans 9,245  
Agriculture | Non-Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Collectively Evaluated For Impairment 8,921  
Total loans 8,921  
Commercial | Non-Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually Evaluated for Impairment 29  
Collectively Evaluated For Impairment 30,072  
Total loans 30,101 29,860
With no related allowance recorded, Recorded Balance 1  
With no related allowance recorded, Unpaid Principal Balance 103  
With no related allowance recorded, Average Investment in Impaired Loans 6  
With an allowance recorded, Recorded Balance 28  
With an allowance recorded, Unpaid Principal Balance 43  
With an allowance recorded, Specific Allowance 28  
With an allowance recorded, Average Investment in Impaired Loans 35  
Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually Evaluated for Impairment   580
Real Estate | Commercial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually Evaluated for Impairment 483  
Collectively Evaluated For Impairment 101,963  
Total loans 102,446 105,211
With no related allowance recorded, Recorded Balance 483  
With no related allowance recorded, Unpaid Principal Balance 605  
With no related allowance recorded, Average Investment in Impaired Loans 516  
With an allowance recorded, Average Investment in Impaired Loans 42  
SIDS    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Collectively Evaluated For Impairment 5,468  
Total loans 5,468  
Consumer    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   $ 25,903
Consumer | Auto    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Collectively Evaluated For Impairment 5,622  
Total loans 5,622  
With no related allowance recorded, Unpaid Principal Balance 3  
Consumer | Other    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Collectively Evaluated For Impairment 14,334  
Total loans 14,334  
With an allowance recorded, Average Investment in Impaired Loans 2  
Construction and Land Development | Non-1-4 Family    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Collectively Evaluated For Impairment 23,644  
Total loans $ 23,644  
v3.23.3
Loans and Allowance for Credit Losses - Summary of Loans Individually Evaluated (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually Evaluated for Impairment   $ 850
Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually Evaluated for Impairment $ 580  
Real Estate | Real Estate - Commercial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually Evaluated for Impairment 470  
Real Estate | Real Estate - Residential    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually Evaluated for Impairment 110  
Other    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually Evaluated for Impairment 26  
Other | Commercial Non-RE    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually Evaluated for Impairment $ 26  
v3.23.3
Loans and Allowance for Credit Losses - Summary Of Risk Category of Loans (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 $ 40,305  
2022 90,438  
2021 94,135  
Prior 111,863  
Revolving Loans 28,643  
Total Loans 365,384  
Total loans 365,384 $ 353,687
Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   349,095
Substandard    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   4,592
Residential | 1-4 Family Residential    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   119,610
Residential | 1-4 Family Residential | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   118,839
Residential | 1-4 Family Residential | Substandard    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   771
Residential | Multi Family Residential    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   34,296
Residential | Multi Family Residential | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   34,296
Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Current year-to-date gross write-offs, Total Loans 1  
Real Estate | Real Estate - Construction    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 6,634  
2022 5,516  
2021 5,731  
Prior 2,611  
Total Loans 20,492  
Real Estate | Real Estate - Construction | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 6,634  
2022 5,516  
2021 5,731  
Prior 2,611  
Total Loans 20,492  
Real Estate | Real Estate - Commercial    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 10,357  
2022 26,342  
2021 19,672  
Prior 42,314  
Revolving Loans 6,526  
Total Loans 105,211  
Total loans   102,446
Real Estate | Real Estate - Commercial | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 10,357  
2022 26,342  
2021 19,672  
Prior 39,407  
Revolving Loans 6,526  
Total Loans 102,304  
Total loans   99,367
Real Estate | Real Estate - Commercial | Substandard    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Prior 2,907  
Total Loans 2,907  
Total loans   3,079
Real Estate | Real Estate - Residential    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 6,473  
2022 32,394  
2021 55,240  
Prior 43,123  
Revolving Loans 11,707  
Total Loans 148,937  
Real Estate | Real Estate - Residential | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 6,383  
2022 32,394  
2021 55,240  
Prior 42,659  
Revolving Loans 11,707  
Total Loans 148,383  
Real Estate | Real Estate - Residential | Substandard    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Prior 464  
Total Loans 464  
Real Estate | Real Estate - Residential | Doubtful    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 90  
Total Loans 90  
Commercial Non Real Estate Portfolio Segment | Commercial - Non Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 1,398  
2022 8,817  
2021 3,303  
Prior 13,445  
Revolving Loans 2,897  
Total Loans 29,860  
Total loans 29,860 30,101
Commercial Non Real Estate Portfolio Segment | Commercial - Non Real Estate | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 1,398  
2022 8,675  
2021 3,303  
Prior 12,945  
Revolving Loans 2,897  
Total Loans 29,218  
Total loans   29,390
Commercial Non Real Estate Portfolio Segment | Commercial - Non Real Estate | Substandard    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2022 142  
Prior 475  
Total Loans 617  
Total loans   711
Commercial Non Real Estate Portfolio Segment | Commercial - Non Real Estate | Doubtful    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Prior 25  
Total Loans 25  
Agricultural Portfolio Segment | Agricultural    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 1,504  
2022 3,562  
2021 2,742  
Prior 4,420  
Revolving Loans 7,313  
Total Loans 19,541  
Total loans 19,541  
Agricultural Portfolio Segment | Agricultural | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 1,504  
2022 3,562  
2021 2,742  
Prior 4,420  
Revolving Loans 7,313  
Total Loans 19,541  
Agricultural Portfolio Segment | Agriculture Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   9,245
Agricultural Portfolio Segment | Agriculture Real Estate | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   9,245
Agricultural Portfolio Segment | Agricultural Non-Real Estate    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   8,921
Agricultural Portfolio Segment | Agricultural Non-Real Estate | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   8,921
Consumer Portfolio Segment    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans 25,903  
Current year-to-date gross write-offs, Total Loans 1  
Consumer Portfolio Segment | Other Consumer    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 13,435  
2022 7,023  
2021 1,316  
Prior 4,129  
Total Loans 25,903  
Total loans 25,903 14,334
Current year-to-date gross write-offs, 2022 1  
Current year-to-date gross write-offs, Total Loans 1  
Consumer Portfolio Segment | Other Consumer | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 13,435  
2022 7,023  
2021 1,298  
Prior 4,129  
Total Loans 25,885  
Total loans   14,334
Consumer Portfolio Segment | Other Consumer | Substandard    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2021 18  
Total Loans 18  
Consumer Portfolio Segment | Consumer Auto    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   5,622
Consumer Portfolio Segment | Consumer Auto | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   5,591
Consumer Portfolio Segment | Consumer Auto | Substandard    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   31
Construction and Land Development | Non One to Four Family Construction and Development    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   23,644
Construction and Land Development | Non One to Four Family Construction and Development | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   23,644
Land Development And SIDs Portfolio Segment | Land Development and SIDs    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 504  
2022 6,784  
2021 6,131  
Prior 1,821  
Revolving Loans 200  
Total Loans 15,440  
Total loans 15,440  
Land Development And SIDs Portfolio Segment | Land Development and SIDs | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
2023 504  
2022 6,784  
2021 6,131  
Prior 1,821  
Revolving Loans 200  
Total Loans $ 15,440  
Land Development And SIDs Portfolio Segment | Sanitary & Improvement Districts    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   5,468
Land Development And SIDs Portfolio Segment | Sanitary & Improvement Districts | Pass    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Total loans   $ 5,468
v3.23.3
Loans and Allowance for Credit Losses - Schedule of Loans on Nonaccrual Status (Details)
$ in Thousands
3 Months Ended
Jun. 30, 2023
USD ($)
Financing Receivable, Nonaccrual [Line Items]  
Nonaccrual loans beginning of period $ 850
Nonaccrual loans end of period 606
Nonaccrual with no Allowance for Credit Loss 491
Nonaccrual with allowance for Credit Loss 115
Interest Income Recognized During the Period 14
Commercial Real Estate Portfolio Segment | Real Estate - Commercial  
Financing Receivable, Nonaccrual [Line Items]  
Nonaccrual loans beginning of period 484
Nonaccrual loans end of period 470
Nonaccrual with no Allowance for Credit Loss 470
Interest Income Recognized During the Period 10
Commercial Real Estate Portfolio Segment | Real Estate - Residential  
Financing Receivable, Nonaccrual [Line Items]  
Nonaccrual loans beginning of period 338
Nonaccrual loans end of period 110
Nonaccrual with no Allowance for Credit Loss 20
Nonaccrual with allowance for Credit Loss 90
Interest Income Recognized During the Period 2
Commercial Non Real Estate Portfolio Segment | Commercial - Non Real Estate  
Financing Receivable, Nonaccrual [Line Items]  
Nonaccrual loans beginning of period 28
Nonaccrual loans end of period 26
Nonaccrual with no Allowance for Credit Loss 1
Nonaccrual with allowance for Credit Loss 25
Interest Income Recognized During the Period $ 2
v3.23.3
Loans and Allowance for Credit Losses - Summary of Recorded Investment in Nonaccrual and Loans Past Due (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual $ 606 $ 850
Loans Past Due 90 Days or More Still Accruing 137 178
Residential Portfolio Segment | 1-4 Family Residential    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual   338
Commercial Real Estate Portfolio Segment | Commercial Real Estate    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual 470 484
Commercial Non Real Estate Portfolio Segment | Commercial - Non Real Estate    
Financing Receivable, Nonaccrual [Line Items]    
Nonaccrual 26 28
Consumer Portfolio Segment | Other Consumer    
Financing Receivable, Nonaccrual [Line Items]    
Loans Past Due 90 Days or More Still Accruing $ 137 $ 178
v3.23.3
Loans and Allowance for Credit Losses - Schedule of Aging Analysis of Contractually Past Due Loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Financing Receivable, Past Due [Line Items]    
Loans Due $ 365,384  
Total Loans 365,384 $ 353,687
Loans Past Due 90 Days or More Still Accruing 137 178
30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 498 972
60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 632 24
Greater than 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 229 206
Total Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 1,359 1,202
Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 364,025 352,485
Residential Portfolio Segment | 1-4 Family Residential    
Financing Receivable, Past Due [Line Items]    
Total Loans   119,610
Residential Portfolio Segment | 1-4 Family Residential | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due   585
Residential Portfolio Segment | 1-4 Family Residential | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due   585
Residential Portfolio Segment | 1-4 Family Residential | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due   119,025
Residential Portfolio Segment | Multi Family Residential    
Financing Receivable, Past Due [Line Items]    
Total Loans   34,296
Residential Portfolio Segment | Multi Family Residential | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due   34,296
Commercial Real Estate Portfolio Segment | Real Estate - Construction    
Financing Receivable, Past Due [Line Items]    
Total Loans 20,492  
Commercial Real Estate Portfolio Segment | Real Estate - Construction | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 20,492  
Commercial Real Estate Portfolio Segment | Real Estate - Commercial    
Financing Receivable, Past Due [Line Items]    
Total Loans 105,211 102,446
Commercial Real Estate Portfolio Segment | Real Estate - Commercial | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 321  
Commercial Real Estate Portfolio Segment | Real Estate - Commercial | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 321  
Commercial Real Estate Portfolio Segment | Real Estate - Commercial | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 104,890 102,446
Commercial Real Estate Portfolio Segment | Real Estate - Residential    
Financing Receivable, Past Due [Line Items]    
Total Loans 148,937  
Commercial Real Estate Portfolio Segment | Real Estate - Residential | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 91  
Commercial Real Estate Portfolio Segment | Real Estate - Residential | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 179  
Commercial Real Estate Portfolio Segment | Real Estate - Residential | Greater than 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 67  
Commercial Real Estate Portfolio Segment | Real Estate - Residential | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 337  
Commercial Real Estate Portfolio Segment | Real Estate - Residential | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 148,600  
Commercial Non Real Estate Portfolio Segment | Commercial Non-RE    
Financing Receivable, Past Due [Line Items]    
Loans Due 29,860  
Total Loans 29,860 30,101
Commercial Non Real Estate Portfolio Segment | Commercial Non-RE | Greater than 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 25 28
Commercial Non Real Estate Portfolio Segment | Commercial Non-RE | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 25 28
Commercial Non Real Estate Portfolio Segment | Commercial Non-RE | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 29,835 30,073
Agricultural Portfolio Segment | Agricultural RE    
Financing Receivable, Past Due [Line Items]    
Total Loans   9,245
Agricultural Portfolio Segment | Agricultural RE | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due   9,245
Agricultural Portfolio Segment | Agricultural Non-RE    
Financing Receivable, Past Due [Line Items]    
Total Loans   8,921
Agricultural Portfolio Segment | Agricultural Non-RE | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due   8,921
Agricultural Portfolio Segment | Agricultural    
Financing Receivable, Past Due [Line Items]    
Loans Due 19,541  
Total Loans 19,541  
Agricultural Portfolio Segment | Agricultural | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 19,541  
Consumer Portfolio Segment    
Financing Receivable, Past Due [Line Items]    
Total Loans 25,903  
Consumer Portfolio Segment | Consumer Auto    
Financing Receivable, Past Due [Line Items]    
Total Loans   5,622
Consumer Portfolio Segment | Consumer Auto | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due   43
Consumer Portfolio Segment | Consumer Auto | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due   24
Consumer Portfolio Segment | Consumer Auto | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due   67
Consumer Portfolio Segment | Consumer Auto | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due   5,555
Consumer Portfolio Segment | Other Consumer    
Financing Receivable, Past Due [Line Items]    
Loans Due 25,903  
Total Loans 25,903 14,334
Loans Past Due 90 Days or More Still Accruing 137 178
Consumer Portfolio Segment | Other Consumer | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 86 344
Consumer Portfolio Segment | Other Consumer | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 453  
Consumer Portfolio Segment | Other Consumer | Greater than 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 137 178
Consumer Portfolio Segment | Other Consumer | Total Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 676 522
Consumer Portfolio Segment | Other Consumer | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due 25,227 13,812
Construction and Land Development | Non 1-4 Family Construc and Land Development    
Financing Receivable, Past Due [Line Items]    
Total Loans   23,644
Construction and Land Development | Non 1-4 Family Construc and Land Development | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due   23,644
Land Development And SIDs Portfolio Segment | SIDS    
Financing Receivable, Past Due [Line Items]    
Total Loans   5,468
Land Development And SIDs Portfolio Segment | SIDS | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due   $ 5,468
Land Development And SIDs Portfolio Segment | Land Development and SIDs    
Financing Receivable, Past Due [Line Items]    
Loans Due 15,440  
Total Loans 15,440  
Land Development And SIDs Portfolio Segment | Land Development and SIDs | Loans Not Past Due    
Financing Receivable, Past Due [Line Items]    
Loans Due $ 15,440  
v3.23.3
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Property, Plant and Equipment [Line Items]    
Premises and equipment $ 14,193 $ 13,902
Less accumulated depreciation 10,161 9,798
Total premises and equipment 4,032 4,104
Land    
Property, Plant and Equipment [Line Items]    
Premises and equipment 828 818
Buildings and leasehold improvements    
Property, Plant and Equipment [Line Items]    
Premises and equipment 8,887 8,855
Equipment    
Property, Plant and Equipment [Line Items]    
Premises and equipment 3,311 3,150
Automobiles    
Property, Plant and Equipment [Line Items]    
Premises and equipment 136 48
Computer software    
Property, Plant and Equipment [Line Items]    
Premises and equipment $ 1,031 $ 1,031
v3.23.3
Premises and Equipment - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Property, Plant and Equipment [Abstract]    
Depreciation Expense $ 127 $ 120
v3.23.3
Deposits - Summary of Certificates of Deposit (Details)
$ in Thousands
Jun. 30, 2023
USD ($)
Maturities of Time Deposits [Abstract]  
2024 $ 81,061
2025 6,198
2026 2,480
2027 1,395
2028+ 210
Total certificate accounts $ 91,344
v3.23.3
Deposits - Additional Information (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Deposits [Abstract]    
Certificate of Deposit with minimum denomination of $250 $ 29,241 $ 31,376
Brokered deposits $ 8,062 $ 8,062
v3.23.3
Borrowings - Additional Information (Details) - USD ($)
Jun. 30, 2023
Mar. 31, 2023
Line of Credit Facility [Line Items]    
Outstanding borrowings $ 0 $ 0
Remaining availability for Federal Home Loan Bank (FHLB) borrowings 40,571,000 40,579,000
Investment Securities Pledged    
Line of Credit Facility [Line Items]    
Federal Home Loan Bank (FHLB) borrowings, collateral for advances 80,000  
Loans Pledged    
Line of Credit Facility [Line Items]    
Federal Home Loan Bank (FHLB) borrowings, collateral for advances 50,000,000  
Private Bankers' Bank    
Line of Credit Facility [Line Items]    
Line of credit, maximum borrowing capacity $ 5,000,000 $ 5,000,000
v3.23.3
Regulatory Capital Requirements - Schedule of Actual Capital Amounts and Ratios (Details)
$ in Thousands
Jun. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Total Capital (to Risk- Weighted Assets), Actual Amount $ 48,373 $ 47,809
Tier 1 Capital (to Risk- Weighted Assets), Actual Amount 43,903 43,355
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Amount 43,903 43,355
Tier 1 Capital (to Average Assets), Actual Amount $ 43,903 $ 43,355
Total Capital (to Risk- Weighted Assets), Actual Ratio 0.1358 0.1345
Tier 1 Capital (to Risk- Weighted Assets), Actual Ratio 0.1232 0.122
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Ratio 0.1232 0.122
Tier 1 Capital (to Average Assets), Actual Ratio 0.1007 0.1012
Total Capital (to Risk- Weighted Assets), Minimum Required for Capital Adequacy Purposes, Amount $ 28,498 $ 28,432
Tier 1 Capital (to Risk- Weighted Assets), Minimum Required for Capital Adequacy Purposes, Amount 21,373 21,324
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes, Amount 16,030 15,993
Tier 1 Capital (to Average Assets), Minimum Required for Capital Adequacy Purposes, Amount $ 17,439 $ 17,139
Total Capital (to Risk- Weighted Assets), Minimum Required for Capital Adequacy Purposes, Ratio 0.08 0.08
Tier 1 Capital (to Risk- Weighted Assets), Minimum Required for Capital Adequacy Purposes, Ratio 0.06 0.06
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Required for Capital Adequacy Purposes, Ratio 0.045 0.045
Tier 1 Capital (to Average Assets), Minimum Required for Capital Adequacy Purposes, Ratio 0.04 0.04
Total Capital (to Risk- Weighted Assets), Minimum Required To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount $ 35,622 $ 35,540
Tier 1 Capital (to Risk- Weighted Assets), Minimum Required To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount 28,498 28,432
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Required To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount 23,154 23,101
Tier 1 Capital (to Average Assets), Minimum Required To be Well-Capitalized Under Prompt Corrective Action Provisions, Amount $ 21,798 $ 21,424
Total Capital (to Risk- Weighted Assets), Minimum Required To be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio 0.10 0.10
Tier 1 Capital (to Risk- Weighted Assets), Minimum Required To be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio 0.08 0.08
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Required To be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio 0.065 0.065
Tier 1 Capital (to Average Assets), Minimum Required To be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio 0.05 0.05
v3.23.3
Mortgage Servicing - Summary of Activity in Mortgage Servicing Rights Using Amortized Cost (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Transfers and Servicing [Abstract]    
Balance at beginning of year $ 434 $ 563
Additions 27 33
Repayments and amortization (41) (162)
Balance at end of quarter $ 420 $ 434
v3.23.3
Mortgage Servicing - Additional Information (Details) - USD ($)
Jun. 30, 2023
Mar. 31, 2023
Transfers and Servicing [Abstract]    
Allowance for impairment on the Association's Mortgage Servicing Rights $ 0  
Loans serviced for others 148,975 $ 149,521
Escrow deposit $ 2,278 $ 3,511
v3.23.3
Commitments and Contingencies - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Other Commitments [Line Items]    
Committed amount to consumers $ 44,321 $ 48,938
Loan Origination Commitments    
Other Commitments [Line Items]    
Outstanding loan commitments $ 3,515 $ 4,681
v3.23.3
Fair Value Of Financial Instruments - Summary Of Carrying Amounts And Estimated Fair Values By Fair Value Hierarchy Of Certain Financial Instruments (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Carrying Amount    
Financial assets:    
Loans, net $ 359,740 $ 348,337
Financial liabilities:    
Interest-bearing deposits 319,470 317,704
Estimated Fair Value    
Financial assets:    
Loans, net 322,568 316,169
Financial liabilities:    
Interest-bearing deposits 270,658 272,270
Level 2    
Financial liabilities:    
Interest-bearing deposits 270,658 272,270
Level 3    
Financial assets:    
Loans, net $ 322,568 $ 316,169
v3.23.3
Fair Value Of Financial Instruments - Additional Information (Details) - USD ($)
3 Months Ended
Jun. 30, 2023
Mar. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investment securities - Available for sale $ 58,636,000 $ 57,842,000
Fair value assets and liabilities transfer amount 0  
Fair Value, Recurring    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Investment securities - Available for sale 58,636,000 57,842,000
Assets or liabilities measured at fair value $ 0 $ 0
v3.23.3
Fair Value Of Financial Instruments - Summary of Financial Assets Measured at Fair Value on a Recurring Basis are Available-for-Sale Securities (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities Available-for-sale $ 58,636 $ 57,842
Municipal Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities Available-for-sale 7,561 7,706
Fair Value, Recurring | Estimated Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities Available-for-sale 58,636 57,842
Fair Value, Recurring | Estimated Fair Value | Mortgage Backed Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities Available-for-sale 51,075 50,136
Fair Value, Recurring | Estimated Fair Value | Municipal Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities Available-for-sale 7,561 7,706
Fair Value, Recurring | Estimated Fair Value | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities Available-for-sale 58,636 57,842
Fair Value, Recurring | Estimated Fair Value | Level 2 | Mortgage Backed Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities Available-for-sale 51,075 50,136
Fair Value, Recurring | Estimated Fair Value | Level 2 | Municipal Bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities Available-for-sale 7,561 7,706
Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities Available-for-sale $ 58,636 $ 57,842
v3.23.3
Summary of Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Nonrecurring - Estimated Fair Value - USD ($)
$ in Thousands
Jun. 30, 2023
Mar. 31, 2023
Assets, Fair Value Disclosure [Abstract]    
Impaired loans $ 492 $ 629
Total assets at fair value 492 629
Level 3    
Assets, Fair Value Disclosure [Abstract]    
Impaired loans 492 629
Total assets at fair value $ 492 $ 629
v3.23.3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance $ 38,666 $ 38,402
Other comprehensive income (loss) (506) (1,630)
Ending balance 38,704 37,447
Unrealized Gains and Losses on Available-for- Sale Debt Securities    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance (4,718) (2,033)
Other comprehensive income (loss) (506) (1,648)
Ending balance (5,224) (3,681)
Defined Benefit Pension Plans    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance (389) (1,692)
Other comprehensive income (loss) 0 18
Ending balance (389) (1,674)
Accumulated Other Comprehensive Loss    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance (5,107) (3,725)
Other comprehensive income (loss) (506) (1,630)
Ending balance $ (5,613) $ (5,355)
v3.23.3
Accumulated Other Comprehensive Loss - Schedule of Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Salaries and employee benefits $ 1,564 $ 1,553
Income tax (expense) benefit (232) (191)
Net income (loss) 946 675
Reclassification out of Accumulated Other Comprehensive Income    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Net income (loss) 506 1,630
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available-for- Sale Debt Securities    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Debt Securities gains (losses), net (642) (2,085)
Income tax (expense) benefit 136 437
Net income (loss) 506 1,648
Reclassification out of Accumulated Other Comprehensive Income | Actuarial gains (losses)    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Salaries and employee benefits 0 20
Income tax (expense) benefit 0 (2)
Net income (loss) $ 0 $ (18)
v3.23.3
Leases - Schedule of the Future Undiscounted Lease Payments (Details)
$ in Thousands
Jun. 30, 2023
USD ($)
Leases [Abstract]  
2024 $ 76
2025 60
2026 52
2027 40
2028 37
Thereafter 121
Total undiscounted lease payments 386
Less: Imputed interest (34)
Net lease liability $ 352
v3.23.3
Leases - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Leases [Abstract]    
Rent Expenses $ 19 $ 19
v3.23.3
Plan of Conversion - Additional Information (Details) - Plan of Conversion and Change in Corporate Form - USD ($)
$ / shares in Units, $ in Thousands
Jun. 06, 2023
Jun. 30, 2023
Plan of Conversion [Line Items]    
Stock price $ 10  
Percentage of maximum subscribed common stock in employee stock ownership plan 8.00%  
Estimated cost of mutual-to-stock conversion $ 1,900  
Conversion costs paid and deferred   $ 608,000