Loans Held For Investment (Tables)

6 Months Ended

Dec. 31, 2019


	December 31,		June 30,
(In Thousands)	2019		2019
Mortgage loans:
Single-family	$	347,344	$	324,952
Multi-family		479,151		439,041
Commercial real estate		107,613		111,928
Construction (1)		6,914		4,638
Other		—		167
Commercial business loans (2)		578		478
Consumer loans (3)		140		134
Total loans held for investment, gross		941,740		881,338

Advance payments of escrows		56		53
Deferred loan costs, net		6,854		5,610
Allowance for loan losses		(6,921)		(7,076)
Total loans held for investment, net	$	941,729	$	879,925

⁽¹⁾

Net of $6.8 million and $6.6 million of undisbursed loan funds as of December 31, 2019 and June 30, 2019, respectively

⁽²⁾

Net of $0.9 million and $1.0 million of undisbursed lines of credit as of December 31, 2019 and June 30, 2019, respectively.

⁽³⁾

Net of $0.5 million and $0.5 million of undisbursed lines of credit as of December 31, 2019 and June 30, 2019, respectively.

Schedule of loans held for investment, contractual repricing


	Adjustable Rate
			After		After		After
			One Year		3 Years		5 Years
	Within One		Through 3		Through 5		Through 10
(In Thousands)	Year		Years		Years		Years		Fixed Rate		Total
Mortgage loans:
Single-family	$	83,613	$	41,111	$	121,719	$	90,106	$	10,795	$	347,344
Multi-family		138,125		162,170		159,357		19,327		172		479,151
Commercial real estate		38,497		27,918		40,118		685		395		107,613
Construction		5,796		—		—		—		1,118		6,914
Commercial business loans		160		—		—		—		418		578
Consumer loans		140		—		—		—		—		140
Total loans held for investment, gross	$	266,331	$	231,199	$	321,194	$	110,118	$	12,898	$	941,740

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


	December 31, 2019
	Single-		Multi-		Commercial				Commercial
(In Thousands)	family		family		Real Estate		Construction		Business		Consumer		Total
Pass	$	339,599	$	475,330	$	106,687	$	5,629	$	535	$	140	$	927,920
Special Mention		4,276		3,821		—		1,285		—		—		9,382
Substandard		3,469		—		926		—		43		—		4,438
Total loans held for investment, gross	$	347,344	$	479,151	$	107,613	$	6,914	$	578	$	140	$	941,740


	June 30, 2019
	Single-		Multi-		Commercial				Other		Commercial
(In Thousands)	family		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

The following table is provided to disclose additional details for the periods indicated on the Corporation’s allowance for loan losses:


	For the Quarter Ended						For the Six Months Ended
	December 31,						December 31,
(Dollars in Thousands)	2019			2018			2019			2018
Allowance at beginning of period	$	6,929		$	7,155		$	7,076		$	7,385

Provision (recovery) for loan losses		(22)			(217)			(203)			(454)

Recoveries:
Mortgage loans:
Single-family		13			123			49			155
Consumer loans		1			—			1			1
Total recoveries		14			123			50			156

Charge-offs:
Mortgage loans:
Single-family		—			—			(1)			(25)
Consumer loans		—			—			(1)			(1)
Total charge-offs		—			—			(2)			(26)

Net recoveries (charge-offs)		14			123			48			130
Balance at end of period	$	6,921		$	7,061		$	6,921		$	7,061

Allowance for loan losses as a percentage of gross loans held for investment at the end of the period		0.73	%		0.80	%		0.73	%		0.80	%
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period (annualized)		(0.01)	%		(0.05)	%		(0.01)	%		(0.03)	%

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


	December 31, 2019
			30‑89 Days				Total Loans Held for
(In Thousands)	Current		Past Due		Non-Accrual (1)		Investment, Gross
Mortgage loans:
Single-family	$	342,893	$	982	$	3,469	$	347,344
Multi-family		479,151		—		—		479,151
Commercial real estate		107,613		—		—		107,613
Construction		6,914		—		—		6,914
Commercial business loans		535		—		43		578
Consumer loans		136		4		—		140
Total loans held for investment, gross	$	937,242	$	986	$	3,512	$	941,740

⁽¹⁾

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


	June 30, 2019
			30‑89 Days				Total Loans Held for
(In Thousands)	Current		Past 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 allowance for loan losses and recorded investment


	Quarter Ended December 31, 2019
	Single-			Multi-			Commercial						Commercial
(In Thousands)	family			family			Real Estate			Construction			Business			Consumer			Total
Allowance for loan losses:
Allowance at beginning of period	$	2,234		$	3,507		$	1,085		$	74		$	20		$	9		$	6,929
Provision (recovery) for loan losses		(90)			(5)			(27)			94			8			(2)			(22)
Recoveries		13			—			—			—			—			1			14
Charge-offs		—			—			—			—			—			—			—
Allowance for loan losses, end of period	$	2,157		$	3,502		$	1,058		$	168		$	28		$	8		$	6,921

Allowance for loan losses:
Individually evaluated for impairment	$	46		$	—		$	—		$	—		$	6		$	—		$	52
Collectively evaluated for impairment		2,111			3,502			1,058			168			22			8			6,869
Allowance for loan losses, end of period	$	2,157		$	3,502		$	1,058		$	168		$	28		$	8		$	6,921

Loans held for investment:
Individually evaluated for impairment	$	3,053		$	—		$	—		$	—		$	43		$	—		$	3,096
Collectively evaluated for impairment		344,291			479,151			107,613			6,914			535			140			938,644
Total loans held for investment, gross	$	347,344		$	479,151		$	107,613		$	6,914		$	578		$	140		$	941,740
Allowance for loan losses as a percentage of gross loans held for investment		0.62	%		0.73	%		0.98	%		2.43	%		4.84	%		5.71	%		0.73	%


	Quarter Ended December 31, 2018
	Single-			Multi-			Commercial									Commercial
(In Thousands)	family			family			Real Estate			Construction			Other			Business			Consumer			Total
Allowance for loan losses:
Allowance at beginning of period	$	2,741		$	3,336		$	1,012		$	38		$	3		$	19		$	6		$	7,155
Provision (recovery) for loan losses		(185)			(56)			7			10			—			7			—			(217)
Recoveries		123			—			—			—			—			—			—			123
Charge-offs		—			—			—			—			—			—			—			—
Allowance for loan losses, end of period	$	2,679		$	3,280		$	1,019		$	48		$	3		$	26		$	6		$	7,061

Allowance for loan losses:
Individually evaluated for impairment	$	159		$	—		$	—		$	—		$	—		$	9		$	—		$	168
Collectively evaluated for impairment		2,520			3,280			1,019			48			3			17			6			6,893
Allowance for loan losses, end of period	$	2,679		$	3,280		$	1,019		$	48		$	3		$	26		$	6		$	7,061

Loans held for investment:
Individually evaluated for impairment	$	5,817		$	—		$	—		$	745		$	—		$	56		$	—		$	6,618
Collectively evaluated for impairment		306,682			447,033			112,830			3,241			167			399			103			870,455
Total loans held for investment, gross	$	312,499		$	447,033		$	112,830		$	3,986		$	167		$	455		$	103		$	877,073
Allowance for loan losses as a percentage of gross loans held for investment		0.86	%		0.73	%		0.90	%		1.20	%		1.80	%		5.71	%		5.83	%		0.80	%


	Six Months Ended December 31, 2019
	Single-			Multi-			Commercial									Commercial
(In Thousands)	family			family			Real Estate			Construction			Other			Business			Consumer			Total
Allowance for loan losses:
Allowance at beginning of period	$	2,709		$	3,219		$	1,050		$	61		$	3		$	26		$	8		$	7,076
Provision (recovery) for loan losses		(600)			283			8			107			(3)			2			—			(203)
Recoveries		49			—			—			—			—			—			1			50
Charge-offs		(1)			—			—			—			—			—			(1)			(2)
Allowance for loan losses, end of period	$	2,157		$	3,502		$	1,058		$	168		$	—		$	28		$	8		$	6,921

Allowance for loan losses:
Individually evaluated for impairment	$	46		$	—		$	—		$	—		$	—		$	6		$	—		$	52
Collectively evaluated for impairment		2,111			3,502			1,058			168			—			22			8			6,869
Allowance for loan losses, end of period	$	2,157		$	3,502		$	1,058		$	168		$	—		$	28		$	8		$	6,921

Loans held for investment:
Individually evaluated for impairment	$	3,053		$	—		$	—		$	—		$	—		$	43		$	—		$	3,096
Collectively evaluated for impairment		344,291			479,151			107,613			6,914			—			535			140			938,644
Total loans held for investment, gross	$	347,344		$	479,151		$	107,613		$	6,914		$	—		$	578		$	140		$	941,740
Allowance for loan losses as a percentage of gross loans held for investment		0.62	%		0.73	%		0.98	%		2.43	%		—	%		4.84	%		5.71	%		0.73	%


	Six Months Ended December 31, 2018
	Single-			Multi-			Commercial									Commercial
(In Thousands)	family			family			Real Estate			Construction			Other			Business			Consumer			Total
Allowance for loan losses:
Allowance at beginning of period	$	2,783		$	3,492		$	1,030		$	47		$	3		$	24		$	6		$	7,385
Provision (recovery) for loan losses		(234)			(212)			(11)			1			—			2			—			(454)
Recoveries		155			—			—			—			—			—			1			156
Charge-offs		(25)			—			—			—			—			—			(1)			(26)
Allowance for loan losses, end of period	$	2,679		$	3,280		$	1,019		$	48		$	3		$	26		$	6		$	7,061

Allowance for loan losses:
Individually evaluated for impairment	$	159		$	—		$	—		$	—		$	—		$	9		$	—		$	168
Collectively evaluated for impairment		2,520			3,280			1,019			48			3			17			6			6,893
Allowance for loan losses, end of period	$	2,679		$	3,280		$	1,019		$	48		$	3		$	26		$	6		$	7,061

Loans held for investment:
Individually evaluated for impairment	$	5,817		$	—		$	—		$	745		$	—		$	56		$	—		$	6,618
Collectively evaluated for impairment		306,682			447,033			112,830			3,241			167			399			103			870,455
Total loans held for investment, gross	$	312,499		$	447,033		$	112,830		$	3,986		$	167		$	455		$	103		$	877,073
Allowance for loan losses as a percentage of gross loans held for investment		0.86	%		0.73	%		0.90	%		1.20	%		1.80	%		5.71	%		5.83	%		0.80	%

Schedule of recorded investment in non-performing loans


	At December 31, 2019
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance (1)		Investment
Mortgage loans:
Single-family:
With a related allowance	$	1,102	$	—	$	1,102	$	(132)	$	970
Without a related allowance (2)		2,908		(488)		2,420		—		2,420
Total single-family		4,010		(488)		3,522		(132)		3,390

Commercial business loans:
With a related allowance		43		—		43		(6)		37
Total commercial business loans		43		—		43		(6)		37
Total non-performing loans	$	4,053	$	(488)	$	3,565	$	(138)	$	3,427

⁽¹⁾

Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan, and fair value credit adjustments.

⁽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	$	2,640	$	—	$	2,640	$	(434)	$	2,206
Without a related allowance (2)		3,518		(518)		3,000		—		3,000
Total single-family		6,158		(518)		5,640		(434)		5,206

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

Commercial business loans:
With a related allowance		49		—		49		(8)		41
Total commercial business loans		49		—		49		(8)		41
Total non-performing loans	$	7,178	$	(518)	$	6,660	$	(442)	$	6,218

⁽¹⁾

Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan, and fair value credit adjustments.

⁽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 Nonperforming Loans on Interest Income

The following tables present the average recorded investment in non-performing loans and the related interest income recognized for the quarter and six months ended December 31, 2019 and 2018:


	Quarter Ended December 31,
	2019				2018
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(In Thousands)	Investment		Recognized		Investment		Recognized
Without related allowances:
Mortgage loans:
Single-family	$	2,874	$	21	$	3,326	$	189
Construction		—		—		745		—
		2,874		21		4,071		189

With related allowances:
Mortgage loans:
Single-family		1,105		12		2,487		36
Commercial business loans		44		1		60		1
		1,149		13		2,547		37

Total	$	4,023	$	34	$	6,618	$	226


	Six Months Ended December 31,
	2019				2018
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(In Thousands)	Investment		Recognized		Investment		Recognized
Without related allowances:
Mortgage loans:
Single-family	$	2,980	$	111	$	3,963	$	229
Construction		542		20		496		—
		3,522		131		4,459		229

With related allowances:
Mortgage loans:
Single-family		1,151		24		2,279		60
Commercial business loans		45		2		64		2
		1,196		26		2,343		62

Total	$	4,718	$	157	$	6,802	$	291

Schedule of troubled debt restructurings by nonaccrual versus accrual status


	At		At
(In Thousands)	December 31, 2019		June 30, 2019
Restructured loans on non-accrual status:
Mortgage loans:
Single-family	$	1,783	$	1,891
Commercial business loans		37		41
Total		1,820		1,932

Restructured loans on accrual status:
Mortgage loans:
Single-family		—		1,861
Total		—		1,861

Total restructured loans	$	1,820	$	3,793

Schedule of recorded investment in restructured loans


	At December 31, 2019
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance (1)		Investment
Mortgage loans:
Single-family:
With a related allowance	$	685	$	—	$	685	$	(46)	$	639
Without a related allowance (2)		1,509		(365)		1,144		—		1,144
Total single-family		2,194		(365)		1,829		(46)		1,783

Commercial business loans:
With a related allowance		43		—		43		(6)		37
Total commercial business loans		43		—		43		(6)		37
Total restructured loans	$	2,237	$	(365)	$	1,872	$	(52)	$	1,820

⁽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.