Loans Held for Investment (Tables)

12 Months Ended

Jun. 30, 2020

Loans held for investment consisted of the following at June 30, 2020 and 2019 :


(In Thousands)	June 30, 2020		June 30, 2019
Mortgage loans:
Single-family	$	298,810	$	324,952
Multi-family		491,903		439,041
Commercial real estate		105,235		111,928
Construction		7,801		4,638
Other		143		167
Commercial business loans		480		478
Consumer loans		94		134
Total loans held for investment, gross		904,466		881,338

Advance payments of escrows		68		53
Deferred loan costs, net		6,527		5,610
Allowance for loan losses		(8,265)		(7,076)
Total loans held for investment, net	$	902,796	$	879,925

Schedule of loans held for investment, contractual repricing


	Adjustable Rate
			After		After		After
			One Year		3 Years		5 Years
(In Thousands)	Within One Year		Through 3 Years		Through 5 Years		Through 10 Years		Fixed Rate		Total
Mortgage loans:
Single-family	$	80,167	$	54,690	$	89,820	$	65,902	$	8,231	$	298,810
Multi-family		161,881		156,014		157,783		16,069		156		491,903
Commercial real estate		48,343		27,542		29,010		—		340		105,235
Construction		6,041		—		—		—		1,760		7,801
Other		—		—		—		—		143		143
Commercial business loans		85		—		—		—		395		480
Consumer loans		94		—		—		—		—		94
Total loans held for investment, gross	$	296,611	$	238,246	$	276,613	$	81,971	$	11,025	$	904,466

Schedule of gross loans held for investment by loan types and risk category

The following tables summarize gross loans held for investment by loan types and risk category at the dates indicated:


	June 30, 2020
					Commercial						Commercial
(In Thousands)	Single-family		Multi-family		Real Estate		Construction		Other Mortgage		Business		Consumer		Total

Pass	$	289,942	$	488,126	$	105,235	$	6,098	$	143	$	445	$	94	$	890,083
Special Mention		3,120		3,777		—		1,703		—		—		—		8,600
Substandard		5,748		—		—		—		—		35		—		5,783
Total loans held for investment, gross	$	298,810	$	491,903	$	105,235	$	7,801	$	143	$	480	$	94	$	904,466


	June 30, 2019
					Commercial					Other	Commercial
(In Thousands)	Single-family		Multi-family		Real Estate		Construction			Mortgage	Business		Consumer		Total

Pass	$	314,036	$	435,177	$	111,001	$	3,667	$	167	$	429	$	134	$	864,611
Special Mention		3,795		3,864		927		—		—		—		—		8,586
Substandard		7,121		—		—		971		—		49		—		8,141
Total loans held for investment, gross	$	324,952	$	439,041	$	111,928	$	4,638	$	167	$	478	$	134	$	881,338

Schedule of allowance for loan losses and recorded investment

The following tables summarize the Corporation’s allowance for loan losses and recorded investment in gross loans, by portfolio type, at the dates and for the periods indicated.


	Year Ended June 30, 2020
							Commercial									Commercial
(In Thousands)	Single-family			Multi-family			Real Estate			Construction			Other Mortgage			Business			Consumer			Total

Allowance at beginning of period	$	2,709		$	3,219		$	1,050		$	61		$	3		$	26		$	8		$	7,076
Provision (recovery) for loan losses		(156)			1,110			60			110			—			(2)			(3)			1,119
Recoveries		70			—			—			—			—			—			2			72
Charge-offs		(1)			—			—			—			—			—			(1)			(2)
Allowance for loan losses, end of period	$	2,622		$	4,329		$	1,110		$	171		$	3		$	24		$	6		$	8,265

Allowance:
Individually evaluated for impairment	$	96		$	—		$	—		$	—		$	—		$	4		$	—		$	100
Collectively evaluated for impairment		2,526			4,329			1,110			171			3			20			6			8,165
Allowance for loan losses, end of period	$	2,622		$	4,329		$	1,110		$	171		$	3		$	24		$	6		$	8,265

Gross Loans:
Individually evaluated for impairment	$	3,371		$	—		$	—		$	—		$	—		$	35		$	—		$	3,406
Collectively evaluated for impairment		295,439			491,903			105,235			7,801			143			445			94			901,060
Total loans held for investment, gross	$	298,810		$	491,903		$	105,235		$	7,801		$	143		$	480		$	94		$	904,466
Allowance for loan losses as a percentage of gross loans held for investment		0.88	%		0.88	%		1.05	%		2.19	%		2.10	%		5.00	%		6.38	%		0.91	%


	Year Ended June 30, 2019
							Commercial									Commercial
(In Thousands)	Single-family			Multi-family			Real Estate			Construction			Other Mortgage			Business			Consumer			Total

Allowance at beginning of period	$	2,783		$	3,492		$	1,030		$	47		$	3		$	24		$	6		$	7,385
Provision (recovery)for loan losses		(241)			(273)			20			14			—			—			5			(475)
Recoveries		198			—			—			—			—			2			—			200
Charge-offs		(31)			—			—			—			—			—			(3)			(34)
Allowance for loan losses, end of period	$	2,709		$	3,219		$	1,050		$	61		$	3		$	26		$	8		$	7,076

Allowance:
Individually evaluated for impairment	$	122		$	—		$	—		$	—		$	—		$	8		$	—		$	130
Collectively evaluated for impairment		2,587			3,219			1,050			61			3			18			8			6,946
Allowance for loan losses, end of period	$	2,709		$	3,219		$	1,050		$	61		$	3		$	26		$	8		$	7,076

Gross Loans:
Individually evaluated for impairment	$	5,199		$	—		$	—		$	971		$	—		$	49		$	—		$	6,219
Collectively evaluated for impairment		319,753			439,041			111,928			3,667			167			429			134			875,119
Total loans held for investment, gross	$	324,952		$	439,041		$	111,928		$	4,638		$	167		$	478		$	134		$	881,338
Allowance for loan losses as a percentage of gross loans held for investment		0.83	%		0.73	%		0.94	%		1.32	%		1.80	%		5.44	%		5.97	%		0.80	%

Schedule of allowance for loan losses

The following summarizes the components of the net change in the allowance for loan losses for the periods indicated:


	Year Ended June 30,
(In Thousands)	2020		2019

Balance, beginning of year	$	7,076	$	7,385
Provision (recovery) for loan losses		1,119		(475)
Recoveries		72		200
Charge-offs		(2)		(34)
Balance, end of year	$	8,265	$	7,076

Schedule of recorded investment in non-performing loans

	At or For the Year Ended June 30, 2020
	Unpaid								Net		Average		Interest
	Principal		Related		Recorded				Recorded		Recorded		Income
(In Thousands)	Balance		Charge-offs		Investment		Allowance (1)		Investment		Investment		Recognized

Mortgage loans:
Single-family:
With a related allowance	$	3,289	$	—	$	3,289	$	(438)	$	2,851	$	1,541	$	60
Without a related allowance(2)		2,509		(467)		2,042		—		2,042		2,572		119
Total single-family loans		5,798		(467)		5,331		(438)		4,893		4,113		179

Construction:
Without a related allowance(2)		—		—		—		—		—		271		20
Total construction loans		—		—		—		—		—		271		20

Commercial business loans:
With a related allowance		35		—		35		(4)		31		42		4
Total commercial business loans		35		—		35		(4)		31		42		4

Total non-performing loans	$	5,833	$	(467)	$	5,366	$	(442)	$	4,924	$	4,426	$	203

⁽¹⁾

Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan.

⁽²⁾

There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance.


	At or For the Year Ended June 30, 2019
	Unpaid		Related						Net		Average		Interest
	Principal		Charge-offs		Recorded				Recorded		Recorded		Income
(In Thousands)	Balance		Related		Investment		Allowance (1)		Investment		Investment		Recognized

Mortgage loans:
Single-family:
With a related allowance	$	2,640	$	—	$	2,640	$	(434)	$	2,206	$	1,583	$	110
Without a related allowance(2)		3,518		(518)		3,000		—		3,000		4,301		293
Total single-family loans		6,158		(518)		5,640		(434)		5,206		5,884		403

Construction:
Without a related allowance(2)		971		—		971		—		971		664		—
Total construction loans		971		—		971		—		971		664		—

Commercial business loans:
With a related allowance		49		—		49		(8)		41		58		5
Total commercial business loans		49		—		49		(8)		41		58		5

Total non-performing loans	$	7,178	$	(518)	$	6,660	$	(442)	$	6,218	$	6,606	$	408

⁽¹⁾

Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan.

⁽²⁾

There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance.

Schedule of loan forbearance related to COVID-19 hardship requests

As of June 30, 2020, loan forbearance related to COVID-19 hardship requests are described below:


	Forbearance Granted			Forbearance Completed			Forbearance Remaining
	Number of			Number of			Number of
(Dollars In Thousands)	Loans	Amount		Loans	Amount		Loans	Amount
Single-family loans	52	$	21,470	4	$	1,579	48	$	19,891
Multi-family loans	3		1,592	—		—	3		1,592
Commercial real estate loans	2		1,071	—		—	2		1,071
Total loan forbearance	57	$	24,133	4	$	1,579	53	$	22,554

As of June 30, 2020, loan forbearance outstanding balances are described below:


									Weighted	Weighted Avg.
				% of				Weighted	Avg. Debt	Forbearance
	Number			Total		Weighted		Avg.	Coverage	Period
(Dollars In Thousands)	of Loans	Amount		Loans		Avg. LTV(1)		FICO(2)	Ratio(3)	Granted(4)
Single-family loans	48	$	19,891	2.20	%	64	%	727	N/A	6.0
Multi-family loans	3		1,592	0.17	%	41	%	719	1.65x	3.3
Commercial real estate loans(5)	2		1,071	0.12	%	31	%	755	1.36x	3.5
Total loans in forbearance	53	$	22,554	2.49	%	61	%	727	1.53x	5.7

⁽¹⁾

Current loan balance in comparison to the original appraised value.

⁽²⁾

At time of loan origination, borrowers and/or guarantors.

⁽³⁾

At time of loan origination.

⁽⁴⁾

In months.

⁽⁵⁾

Comprised of $579 thousand in Office and $493 thousand in Mixed Used – Office/Single-Family Residential.

Schedule of past due status of gross loans held for investment, net of fair value adjustments

The following tables denote the past due status of the Corporation’s loans held for investment, gross, at the dates indicated.


	June 30, 2020
			30-89 Days Past				Total Loans Held for
(In Thousands)	Current		Due		Non-Accrual (1)		Investment, Gross

Mortgage loans:
Single-family	$	293,326	$	219	$	5,265	$	298,810
Multi-family		491,903		—		—		491,903
Commercial real estate		105,235		—		—		105,235
Construction		7,801		—		—		7,801
Other		143		—		—		143
Commercial business loans		445		—		35		480
Consumer loans		94		—		—		94
Total loans held for investment, gross	$	898,947	$	219	$	5,300	$	904,466

⁽¹⁾

All loans 90 days or greater past due are placed on non-accrual status.


	June 30, 2019
			30-89 Days Past				Total Loans Held for
(In Thousands)	Current		Due		Non-Accrual (1)		Investment, Gross

Mortgage loans:
Single-family	$	318,671	$	660	$	5,621	$	324,952
Multi-family		439,041		—		—		439,041
Commercial real estate		111,928		—		—		111,928
Construction		3,667		—		971		4,638
Other		167		—		—		167
Commercial business loans		429		—		49		478
Consumer loans		129		5		—		134
Total loans held for investment, gross	$	874,032	$	665	$	6,641	$	881,338

⁽¹⁾

All loans 90 days or greater past due are placed on non-accrual status.

Schedule of troubled debt restructurings by nonaccrual versus accrual status

The following table summarizes at the dates indicated the restructured loan balances, net of allowance for loan losses or charge-offs, by loan type and non-accrual versus accrual status at June 30, 2020 and 2019 :


	At June 30,
(In Thousands)	2020		2019
Restructured loans on non-accrual status:
Mortgage loans:
Single-family	$	2,612	$	1,891
Commercial business loans		31		41
Total		2,643		1,932

Restructured loans on accrual status:
Mortgage loans:
Single-family		—		1,861
Total		—		1,861
Total restructured loans	$	2,643	$	3,793

Schedule of recorded investment in restructured loans

The following tables show the restructured loans by type, net of allowance for loan losses or charge-offs, at June 30, 2020 and 2019 :


	At June 30, 2020
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance (1)		Investment

Mortgage loans:
Single-family:
With a related allowance	$	1,650	$	—	$	1,650	$	(108)	$	1,542
Without a related allowance(2)		1,435		(365)		1,070		—		1,070
Total single-family		3,085		(365)		2,720		(108)		2,612

Commercial business loans:
With a related allowance		35		—		35		(4)		31
Total commercial business loans		35		—		35		(4)		31

Total restructured loans	$	3,120	$	(365)	$	2,755	$	(112)	$	2,643

⁽¹⁾

Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan.

⁽²⁾

There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance.


	At June 30, 2019
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance (1)		Investment

Mortgage loans:
Single-family:
With a related allowance	$	2,199	$	—	$	2,199	$	(122)	$	2,077
Without a related allowance(2)		2,040		(365)		1,675		—		1,675
Total single-family		4,239		(365)		3,874		(122)		3,752

Commercial business loans:
With a related allowance		49		—		49		(8)		41
Total commercial business loans		49		—		49		(8)		41

Total restructured loans	$	4,288	$	(365)	$	3,923	$	(130)	$	3,793

⁽¹⁾

Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan.

⁽²⁾

There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance.

Summary of Related Party Loan Activity

The following is a summary of related-party loan activity:


	Year Ended June 30,
(In Thousands)	2020		2019

Balance, beginning of year	$	2	$	677
Originations		—		—
Sales and payments		(1)		(675)
Balance, end of year	$	1	$	2