ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Sep. 30, 2023

Allowance for Credit Losses on Loans Receivable

The following tables present the balance of the allowance for credit losses at September 30, 2023 and June 30, 2023. The balance of the allowance for credit losses is based on an expected loss methodology, referred to as the “CECL” methodology. The tables identify the valuation allowances attributable to specifically identified impairments on individually analyzed loans, including those acquired with deteriorated credit quality, as well as valuation allowances for impairments on loans collectively evaluated. The tables include the underlying balance of loans receivable applicable to each category as of those dates.


	Allowance for Credit Losses September 30, 2023
	Loans acquired with deteriorated credit quality individually analyzed		Loans acquired with deteriorated credit quality collectively evaluated		Loans individually analyzed		Loans collectively evaluated		Total allowance for credit losses
	(In Thousands)
Multi-family mortgage	$	—	$	—	$	342	$	25,248	$	25,590
Nonresidential mortgage	—		64		1,407		5,966		7,437
Commercial business	—		62		36		1,315		1,413
Construction	—		—		—		1,317		1,317
One- to four-family residential mortgage	—		99		66		10,538		10,703
Home equity loans	—		—		—		342		342
Other consumer	—		—		—		70		70
Total loans	$	—	$	225	$	1,851	$	44,796	$	46,872


	Balance of Loans Receivable September 30, 2023
	Loans acquired with deteriorated credit quality individually analyzed		Loans acquired with deteriorated credit quality collectively evaluated		Loans individually analyzed		Loans collectively evaluated		Total loans
	(In Thousands)
Multi-family mortgage	$	—	$	—	$	16,266	$	2,682,885	$	2,699,151
Nonresidential mortgage	323		3,492		14,598		928,388		946,801
Commercial business	—		4,852		437		143,940		149,229
Construction	—		5,735		—		224,968		230,703
One- to four-family residential mortgage	1,156		3,771		5,085		1,679,039		1,689,051
Home equity loans	25		—		22		42,849		42,896
Other consumer	—		—		—		2,644		2,644
Total loans	$	1,504	$	17,850	$	36,408	$	5,704,713	$	5,760,475
Unaccreted yield adjustments									(24,426)
Loans receivable, net of yield adjustments									$	5,736,049


	Allowance for Credit Losses June 30, 2023
	Loans acquired with deteriorated credit quality individually analyzed		Loans acquired with deteriorated credit quality collectively evaluated		Loans individually analyzed		Loans collectively evaluated		Total allowance for credit losses
	(In Thousands)
Multi-family mortgage	$	—	$	—	$	326	$	26,036	$	26,362
Nonresidential mortgage	—		70		3,001		5,882		8,953
Commercial business	—		9		20		1,411		1,440
Construction	—		—		—		1,336		1,336
One- to four-family residential mortgage	3		132		70		10,032		10,237
Home equity loans	—		—		—		338		338
Other consumer	—		—		—		68		68
Total loans	$	3	$	211	$	3,417	$	45,103	$	48,734


	Balance of Loans Receivable June 30, 2023
	Loans acquired with deteriorated credit quality individually analyzed		Loans acquired with deteriorated credit quality collectively evaluated		Loans individually analyzed		Loans collectively evaluated		Total loans
	(In Thousands)
Multi-family mortgage	$	—	$	—	$	19,114	$	2,742,661	$	2,761,775
Nonresidential mortgage	333		3,562		16,207		948,472		968,574
Commercial business	—		4,237		252		142,372		146,861
Construction	—		5,735		—		220,874		226,609
One- to four-family residential mortgage	570		4,433		6,101		1,689,455		1,700,559
Home equity loans	25		—		25		43,499		43,549
Other consumer	—		—		—		2,549		2,549
Total loans	$	928	$	17,967	$	41,699	$	5,789,882	$	5,850,476
Unaccreted yield adjustments									(21,055)
Loans receivable, net of yield adjustments									$	5,829,421

The following tables present the activity in the allowance for credit losses on loans for the three months ended September 30, 2023 and 2022.


	Changes in the Allowance for Credit Losses Three Months Ended September 30, 2023
	Balance at June 30, 2023		Charge-offs		Recoveries		Provision for (reversal of) credit losses		Balance at September 30, 2023
	(In Thousands)
Multi-family mortgage	$	26,362	$	—	$	—	$	(772)	$	25,590
Nonresidential mortgage	8,953		(2,033)		109		408		7,437
Commercial business	1,440		(189)		6		156		1,413
Construction	1,336		—		—		(19)		1,317
One- to four-family residential mortgage	10,237		—		—		466		10,703
Home equity loans	338		—		—		4		342
Other consumer	68		—		—		2		70
Total loans	$	48,734	$	(2,222)	$	115	$	245	$	46,872


	Changes in the Allowance for Credit Losses Three Months Ended September 30, 2022
	Balance at June 30, 2022		Charge-offs		Recoveries		Provision for (reversal of) credit losses		Balance at September 30, 2022
	(In Thousands)
Multi-family mortgage	$	25,321	$	—	$	—	$	925	$	26,246
Nonresidential mortgage	10,590		(10)		—		(1,428)		9,152
Commercial business	1,792		(118)		12		286		1,972
Construction	1,486		—		—		(366)		1,120
One- to four-family residential mortgage	7,540		—		—		1,261		8,801
Home equity loans	245		—		—		(1)		244
Other consumer	84		—		1		(7)		78
Total loans	$	47,058	$	(128)	$	13	$	670	$	47,613

Allowance for Credit Losses on Off Balance Sheet Commitments

The following table presents the activity in the allowance for credit losses on off balance sheet commitments recorded in other non-interest expense for the three months ended September 30, 2023 and 2022:


	Three Months Ended September 30,
	2023		2022
	(In Thousands)
Balance at beginning of the period	$	741	$	1,041
Reversal of credit losses	(74)		(288)
Balance at end of the period	$	667	$	753