Loans Held for Investment (Tables)

9 Months Ended

Mar. 31, 2020


	March 31,		June 30,
(In Thousands)	2020		2019
Mortgage loans:
Single-family	$	326,686	$	324,952
Multi-family		475,941		439,041
Commercial real estate		105,691		111,928
Construction (1)		6,346		4,638
Other		—		167
Commercial business loans (2)		502		478
Consumer loans (3)		122		134
Total loans held for investment, gross		915,288		881,338

Advance payments of escrows		193		53
Deferred loan costs, net		6,636		5,610
Allowance for loan losses		(7,810)		(7,076)
Total loans held for investment, net	$	914,307	$	879,925

⁽¹⁾

Net of $5.5 million and $6.6 million of undisbursed loan funds as of March 31, 2020 and June 30, 2019, respectively

⁽²⁾

Net of $0.9 million and $1.0 million of undisbursed lines of credit as of March 31, 2020 and June 30, 2019, respectively.

⁽³⁾

Net of $0.5 million and $0.5 million of undisbursed lines of credit as of March 31, 2020 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	$	86,557	$	44,427	$	110,309	$	75,117	$	10,276	$	326,686
Multi-family		149,627		160,236		154,391		11,523		164		475,941
Commercial real estate		42,513		30,600		32,210		—		368		105,691
Construction		4,902		—		—		—		1,444		6,346
Commercial business loans		100		—		—		—		402		502
Consumer loans		122		—		—		—		—		122
Total loans held for investment, gross	$	283,821	$	235,263	$	296,910	$	86,640	$	12,654	$	915,288

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


	March 31, 2020
	Single-		Multi-		Commercial				Commercial
(In Thousands)	family		family		Real Estate		Construction		Business		Consumer		Total
Pass	$	316,974	$	472,142	$	105,691	$	4,675	$	462	$	122	$	900,066
Special Mention		5,890		3,799		—		1,671		—		—		11,360
Substandard		3,822		—		—		—		40		—		3,862
Total loans held for investment, gross	$	326,686	$	475,941	$	105,691	$	6,346	$	502	$	122	$	915,288


	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 Nine Months Ended
	March 31,						March 31,
(Dollars in Thousands)	2020			2019			2020			2019
Allowance at beginning of period	$	6,921		$	7,061		$	7,076		$	7,385

Provision (recovery) for loan losses		874			4			671			(450)

Recoveries:
Mortgage loans:
Single-family		14			22			63			177
Consumer loans		1			1			2			2
Total recoveries		15			23			65			179

Charge-offs:
Mortgage loans:
Single-family		—			(6)			(1)			(31)
Consumer loans		—			(2)			(1)			(3)
Total charge-offs		—			(8)			(2)			(34)

Net recoveries (charge-offs)		15			15			63			145
Balance at end of period	$	7,810		$	7,080		$	7,810		$	7,080

Allowance for loan losses as a percentage of gross loans held for investment at the end of the period		0.85	%		0.79	%		0.85	%		0.79	%
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period (annualized)		(0.01)	%		(0.01)	%		(0.01)	%		(0.02)	%

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


	March 31, 2020
			30‑89 Days				Total Loans Held for
(In Thousands)	Current		Past Due		Non-Accrual (1)		Investment, Gross
Mortgage loans:
Single-family	$	320,104	$	2,760	$	3,822	$	326,686
Multi-family		475,941		—		—		475,941
Commercial real estate		105,691		—		—		105,691
Construction		6,346		—		—		6,346
Commercial business loans		462		—		40		502
Consumer loans		118		4		—		122
Total loans held for investment, gross	$	908,662	$	2,764	$	3,862	$	915,288

⁽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 March 31, 2020
	Single-			Multi-			Commercial						Commercial
(In Thousands)	family			family			Real Estate			Construction			Business			Consumer			Total
Allowance for loan losses:
Allowance at beginning of period	$	2,157		$	3,502		$	1,058		$	168		$	28		$	8		$	6,921
Provision (recovery) for loan losses		431			456			3			(12)			(2)			(2)			874
Recoveries		14			—			—			—			—			1			15
Charge-offs		—			—			—			—			—			—			—
Allowance for loan losses, end of period	$	2,602		$	3,958		$	1,061		$	156		$	26		$	7		$	7,810

Allowance for loan losses:
Individually evaluated for impairment	$	45		$	—		$	—		$	—		$	6		$	—		$	51
Collectively evaluated for impairment		2,557			3,958			1,061			156			20			7			7,759
Allowance for loan losses, end of period	$	2,602		$	3,958		$	1,061		$	156		$	26		$	7		$	7,810

Loans held for investment:
Individually evaluated for impairment	$	2,698		$	—		$	—		$	—		$	40		$	—		$	2,738
Collectively evaluated for impairment		323,988			475,941			105,691			6,346			462			122			912,550
Total loans held for investment, gross	$	326,686		$	475,941		$	105,691		$	6,346		$	502		$	122		$	915,288
Allowance for loan losses as a percentage of gross loans held for investment		0.80	%		0.83	%		1.00	%		2.46	%		5.18	%		5.74	%		0.85	%


	Quarter Ended March 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	$	2,679		$	3,280		$	1,019		$	48		$	3		$	26		$	6		$	7,061
Provision (recovery) for loan losses		(58)			20			23			15			—			1			3			4
Recoveries		22			—			—			—			—			—			1			23
Charge-offs		(6)			—			—			—			—			—			(2)			(8)
Allowance for loan losses, end of period	$	2,637		$	3,300		$	1,042		$	63		$	3		$	27		$	8		$	7,080

Allowance for loan losses:
Individually evaluated for impairment	$	123		$	—		$	—		$	—		$	—		$	9		$	—		$	132
Collectively evaluated for impairment		2,514			3,300			1,042			63			3			18			8			6,948
Allowance for loan losses, end of period	$	2,637		$	3,300		$	1,042		$	63		$	3		$	27		$	8		$	7,080

Loans held for investment:
Individually evaluated for impairment	$	6,004		$	—		$	—		$	745		$	—		$	53		$	—		$	6,802
Collectively evaluated for impairment		308,820			449,812			115,355			3,394			167			430			133			878,111
Total loans held for investment, gross	$	314,824		$	449,812		$	115,355		$	4,139		$	167		$	483		$	133		$	884,913
Allowance for loan losses as a percentage of gross loans held for investment		0.84	%		0.73	%		0.90	%		1.52	%		1.80	%		5.59	%		6.02	%		0.79	%


	Nine Months Ended March 31, 2020
	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		(169)			739			11			95			(3)			—			(2)			671
Recoveries		63			—			—			—			—			—			2			65
Charge-offs		(1)			—			—			—			—			—			(1)			(2)
Allowance for loan losses, end of period	$	2,602		$	3,958		$	1,061		$	156		$	—		$	26		$	7		$	7,810

Allowance for loan losses:
Individually evaluated for impairment	$	45		$	—		$	—		$	—		$	—		$	6		$	—		$	51
Collectively evaluated for impairment		2,557			3,958			1,061			156			—			20			7			7,759
Allowance for loan losses, end of period	$	2,602		$	3,958		$	1,061		$	156		$	—		$	26		$	7		$	7,810

Loans held for investment:
Individually evaluated for impairment	$	2,698		$	—		$	—		$	—		$	—		$	40		$	—		$	2,738
Collectively evaluated for impairment		323,988			475,941			105,691			6,346			—			462			122			912,550
Total loans held for investment, gross	$	326,686		$	475,941		$	105,691		$	6,346		$	—		$	502		$	122		$	915,288
Allowance for loan losses as a percentage of gross loans held for investment		0.80	%		0.8	%		1.00	%		2.46	%		—	%		5.18	%		5.74	%		0.85	%


	Nine Months Ended March 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	$	2,783		$	3,492		$	1,030		$	47		$	3		$	24		$	6		$	7,385
Provision (recovery) for loan losses		(292)			(192)			12			16			—			3			3			(450)
Recoveries		177			—			—			—			—			—			2			179
Charge-offs		(31)			—			—			—			—			—			(3)			(34)
Allowance for loan losses, end of period	$	2,637		$	3,300		$	1,042		$	63		$	3		$	27		$	8		$	7,080

Allowance for loan losses:
Individually evaluated for impairment	$	123		$	—		$	—		$	—		$	—		$	9		$	—		$	132
Collectively evaluated for impairment		2,514			3,300			1,042			63			3			18			8			6,948
Allowance for loan losses, end of period	$	2,637		$	3,300		$	1,042		$	63		$	3		$	27		$	8		$	7,080

Loans held for investment:
Individually evaluated for impairment	$	6,004		$	—		$	—		$	745		$	—		$	53		$	—		$	6,802
Collectively evaluated for impairment		308,820			449,812			115,355			3,394			167			430			133			878,111
Total loans held for investment, gross	$	314,824		$	449,812		$	115,355		$	4,139		$	167		$	483		$	133		$	884,913
Allowance for loan losses as a percentage of gross loans held for investment		0.84	%		0.73	%		0.90	%		1.52	%		1.80	%		5.59	%		6.02	%		0.79	%

Schedule of recorded investment in non-performing loans


	At March 31, 2020
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance (1)		Investment
Mortgage loans:
Single-family:
With a related allowance	$	1,802	$	—	$	1,802	$	(274)	$	1,528
Without a related allowance (2)		2,548		(475)		2,073		—		2,073
Total single-family		4,350		(475)		3,875		(274)		3,601

Commercial business loans:
With a related allowance		40		—		40		(6)		34
Total commercial business loans		40		—		40		(6)		34
Total non-performing loans	$	4,390	$	(475)	$	3,915	$	(280)	$	3,635

⁽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 nine months ended March 31, 2020 and 2019:


	Quarter Ended March 31,
	2020				2019
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(In Thousands)	Investment		Recognized		Investment		Recognized
Without related allowances:
Mortgage loans:
Single-family	$	2,282	$	8	$	2,785	$	—
Construction		—		—		745		—
		2,282		8		3,530		—

With related allowances:
Mortgage loans:
Single-family		1,569		20		2,841		29
Commercial business loans		40		1		54		1
		1,609		21		2,895		30

Total	$	3,891	$	29	$	6,425	$	30


	Nine Months Ended March 31,
	2020				2019
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(In Thousands)	Investment		Recognized		Investment		Recognized
Without related allowances:
Mortgage loans:
Single-family	$	2,747	$	119	$	3,570	$	229
Construction		361		20		579		—
		3,108		139		4,149		229

With related allowances:
Mortgage loans:
Single-family		1,291		44		2,466		89
Commercial business loans		43		3		61		3
		1,334		47		2,527		92

Total	$	4,442	$	186	$	6,676	$	321

Schedule of troubled debt restructurings by nonaccrual versus accrual status


	At		At
(In Thousands)	March 31, 2020		June 30, 2019
Restructured loans on non-accrual status:
Mortgage loans:
Single-family	$	1,726	$	1,891
Commercial business loans		34		41
Total		1,760		1,932

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

Total restructured loans	$	1,760	$	3,793

Schedule of recorded investment in restructured loans


	At March 31, 2020
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance (1)		Investment
Mortgage loans:
Single-family:
With a related allowance	$	677	$	—	$	677	$	(45)	$	632
Without a related allowance (2)		1,459		(365)		1,094		—		1,094
Total single-family		2,136		(365)		1,771		(45)		1,726

Commercial business loans:
With a related allowance		40		—		40		(6)		34
Total commercial business loans		40		—		40		(6)		34
Total restructured loans	$	2,176	$	(365)	$	1,811	$	(51)	$	1,760

⁽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.