Reportable Segments

12 Months Ended

Jun. 30, 2019

Note 18: Reportable Segments

The segment reporting is organized consistent with the Corporation’s executive summary and operating strategy. The business activities of the Corporation consist primarily of the Bank. The Bank’s operations primarily consist of accepting deposits from customers within the communities surrounding the Bank’s full service offices and investing those funds in single-family, multi-family, commercial real estate, construction, commercial business, consumer, and other mortgage loans. Management monitors the revenue and expense components of the various products and services the Bank offers, but operations are managed and financial performance is evaluated on a Corporation-wide basis in comparison to a business plan which is developed each year. Accordingly, all operations are considered by management to be one operating segment and one reportable segment.

The following table illustrates the Corporation’s single operating segment, the Bank, for the fiscal years ended June 30, 2019 and 2018, respectively:

	Year Ended June 30,
(In Thousands)	2019			2018
Net interest income	$	38,170				$	36,300
Provision (recovery) for loan losses	(475		)		(536			)
Net interest income, after provision (recovery) for loan losses	38,645				36,836

Non-interest income:
Loan servicing and other fees	1,051				1,575
Gain on sale of loans, net	7,135				15,802
Deposit account fees	1,928				2,119
Loss on sale and operations of real estate owned acquired in the settlement of loans, net	(4		)		(86			)
Card and processing fees	1,568				1,541
Other	833				944
Total non-interest income	12,511				21,895

Non-interest expense:
Salaries and employee benefits⁽¹⁾	30,149				34,821
Premises and occupancy⁽²⁾	5,038				5,134
Operating and administrative expenses⁽³⁾	10,049				13,249
Total non-interest expense	45,236				53,204
Income (loss) before taxes	5,920				5,527
Provision (benefit) for income taxes⁽⁴⁾	1,503				3,396
Net income (loss)	$	4,417				$	2,131
Total assets, end of period	$	1,084,850				$	1,175,549

⁽¹⁾	Includes $1.7 million of non-recurring expenses related to scaling back of the origination of saleable single-family mortgage loans for the fiscal year ended June 30, 2019.

⁽²⁾	Includes $0.3 million of non-recurring expenses related to scaling back of the origination of saleable single-family mortgage loans for the fiscal year ended June 30, 2019.

⁽³⁾	Includes $0.8 million of non-recurring equipment expenses related to scaling back of the origination of saleable single-family mortgage loans for the fiscal year ended June 30, 2019; and includes $3.4 million of litigation settlement expenses for the fiscal year ended June 30, 2018.

⁽⁴⁾	Includes a net tax charge of $1.8 million resulting from the revaluation of net deferred tax assets consistent with the Tax Act for the fiscal year ended June 30, 2018.