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Loans Held for Investment (Tables)

12 Months Ended

Jun. 30, 2022

Loans held for investment consisted of the following at June 30, 2022 and 2021:


(In Thousands)	June 30, 2022		June 30, 2021
Mortgage loans:
Single-family	$	378,234	$	268,272
Multi-family		464,676		484,408
Commercial real estate		90,429		95,279
Construction		3,216		3,040
Other		123		139
Commercial business loans		1,206		849
Consumer loans		86		95
Total loans held for investment, gross		937,970		852,082

Advance payments of escrows		47		157
Deferred loan costs, net		7,539		6,308
Allowance for loan losses		(5,564)		(7,587)
Total loans held for investment, net	$	939,992	$	850,960

Schedule of loans held for investment, contractual repricing


	Adjustable Rate
			After		After		After
		Within	One Year		3 Years		5 Years
(In Thousands)	One Year		Through 3 Years		Through 5 Years		Through 10 Years		Fixed Rate		Total
Mortgage loans:
Single-family	$	49,101	$	25,507	$	35,862	$	170,359	$	97,405	$	378,234
Multi-family		135,586		131,136		146,148		51,634		172		464,676
Commercial real estate		46,777		20,934		21,382		—		1,336		90,429
Construction		2,142		—		—		—		1,074		3,216
Other		—		—		—		—		123		123
Commercial business loans		869		—		—		—		337		1,206
Consumer loans		86		—		—		—		—		86
Total loans held for investment, gross	$	234,561	$	177,577	$	203,392	$	221,993	$	100,447	$	937,970

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, 2022
					Commercial				Other		Commercial
(In Thousands)	Single-family		Multi-family		Real Estate		Construction		Mortgage		Business		Consumer		Total

Pass	$	376,502	$	464,676	$	90,429	$	3,216	$	123	$	1,206	$	86	$	936,238
Special Mention		224		—		—		—		—		—		—		224
Substandard		1,508		—		—		—		—		—		—		1,508
Total loans held for investment, gross	$	378,234	$	464,676	$	90,429	$	3,216	$	123	$	1,206	$	86	$	937,970


	June 30, 2021
					Commercial					Other	Commercial
(In Thousands)	Single-family		Multi-family		Real Estate		Construction			Mortgage	Business		Consumer		Total

Pass	$	258,217	$	483,289	$	95,279	$	3,040	$	139	$	849	$	95	$	840,908
Special Mention		1,767		—		—		—		—		—		—		1,767
Substandard		8,288		1,119		—		—		—		—		—		9,407
Total loans held for investment, gross	$	268,272	$	484,408	$	95,279	$	3,040	$	139	$	849	$	95	$	852,082

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 years indicated.


	Year Ended June 30, 2022
							Commercial									Commercial
(In Thousands)	Single-family			Multi-family			Real Estate			Construction			Other Mortgage			Business			Consumer			Total

Allowance at beginning of period	$	2,000		$	4,485		$	1,006		$	51		$	3		$	36		$	6		$	7,587
(Recovery) provision for loan losses		(1,056)			(1,203)			(190)			(28)			—			16			(1)			(2,462)
Recoveries		439			—			—			—			—			—			—			439
Charge-offs		—			—			—			—			—			—			—			—
Allowance for loan losses, end of period	$	1,383		$	3,282		$	816		$	23		$	3		$	52		$	5		$	5,564

Allowance:
Individually evaluated for allowances	$	38		$	—		$	—		$	—		$	—		$	—		$	—		$	38
Collectively evaluated for allowances		1,345			3,282			816			23			3			52			5			5,526
Allowance for loan losses, end of period	$	1,383		$	3,282		$	816		$	23		$	3		$	52		$	5		$	5,564

Gross Loans:
Individually evaluated for allowances	$	1,275		$	—		$	—		$	—		$	—		$	—		$	—		$	1,275
Collectively evaluated for allowances		376,959			464,676			90,429			3,216			123			1,206			86			936,695
Total loans held for investment, gross	$	378,234		$	464,676		$	90,429		$	3,216		$	123		$	1,206		$	86		$	937,970
Allowance for loan losses as a percentage of gross loans held for investment		0.37	%		0.71	%		0.90	%		0.72	%		2.44	%		4.31	%		5.81	%		0.59	%
Net (recoveries) charge-offs to average loans receivable, net during the period		(0.15)	%		—	%		—	%		—	%		—	%		—	%		—	%		(0.05)	%


	Year Ended June 30, 2021
							Commercial									Commercial
(In Thousands)	Single-family			Multi-family			Real Estate			Construction			Other Mortgage			Business			Consumer			Total

Allowance at beginning of period	$	2,622		$	4,329		$	1,110		$	171		$	3		$	24		$	6		$	8,265
(Recovery) provision for loan losses		(653)			156			(104)			(120)			—			12			1			(708)
Recoveries		31			—			—			—			—			—			1			32
Charge-offs		—			—			—			—			—			—			(2)			(2)
Allowance for loan losses, end of period	$	2,000		$	4,485		$	1,006		$	51		$	3		$	36		$	6		$	7,587

Allowance:
Individually evaluated for allowances	$	384		$	—		$	—		$	—		$	—		$	—		$	—		$	384
Collectively evaluated for allowances		1,616			4,485			1,006			51			3			36			6			7,203
Allowance for loan losses, end of period	$	2,000		$	4,485		$	1,006		$	51		$	3		$	36		$	6		$	7,587

Gross Loans:
Individually evaluated for allowances	$	8,039		$	—		$	—		$	—		$	—		$	—		$	—		$	8,039
Collectively evaluated for allowances		260,233			484,408			95,279			3,040			139			849			95			844,043
Total loans held for investment, gross	$	268,272		$	484,408		$	95,279		$	3,040		$	139		$	849		$	95		$	852,082
Allowance for loan losses as a percentage of gross loans held for investment		0.75	%		0.93	%		1.06	%		1.68	%		2.16	%		4.24	%		6.32	%		0.88	%
Net (recoveries) charge-offs to average loans receivable, net during the period		(0.01)	%		—	%		—	%		—	%		—	%		—	%		1.22	%		(0.00)	%

Schedule of allowance for loan losses

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


	Year Ended June 30,
(In Thousands)	2022		2021

Balance, beginning of year	$	7,587	$	8,265
Recovery from the allowance for loan losses		(2,462)		(708)
Recoveries		439		32
Charge-offs		—		(2)
Balance, end of year	$	5,564	$	7,587

Schedule of recorded investment in non-performing loans


	At or For the Year Ended June 30, 2022
	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	$	993	$	—	$	993	$	(85)	$	908	$	2,594	$	98
Without a related allowance⁽²⁾		548		(33)		515		—		515		635		232
Total single-family loans		1,541		(33)		1,508		(85)		1,423		3,229		330

Multi-family:
With a related allowance		—		—		—		—		—		957		46
Total multi-family loans		—		—		—		—		—		957		46

Total non-performing loans	$	1,541	$	(33)	$	1,508	$	(85)	$	1,423	$	4,186	$	376

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

(2)	There was no related allowance for loan losses because these 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, 2021
	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	$	7,400	$	—	$	7,400	$	(434)	$	6,966	$	7,187	$	140
Without a related allowance⁽²⁾		1,335		(436)		899		—		899		1,516		—
Total single-family loans		8,735		(436)		8,299		(434)		7,865		8,703		140

Multi-family:
With a related allowance		1,119		—		1,119		(338)		781		374		15
Total mutlti-family loans		1,119		—		1,119		(338)		781		374		15

Commercial business loans:
With a related allowance		—		—		—		—		—		13		1
Total commercial business loans		—		—		—		—		—		13		1

Total non-performing loans	$	9,854	$	(436)	$	9,418	$	(772)	$	8,646	$	9,090	$	156

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

(2)	There was no related allowance for loan losses because these 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, 2022, loan forbearance related to COVID-19 hardship requests are described below:


	Forbearance Granted			Forbearance Completed⁽¹⁾			Forbearance Remaining
	Number of			Number of			Number of
(Dollars In Thousands)	Loans	Amount		Loans	Amount		Loans	Amount
Single-family loans	59	$	22,980	59	$	22,980	—	$	—
Multi-family loans	5		2,268	5		2,268	—		—
Commercial real estate loans	3		1,954	3		1,954	—		—
Total loan forbearance	67	$	27,202	67	$	27,202	—	$	—

(1)

Includes 19 single-family loans totaling $6.9 million where forbearance was subsequently extended and were classified as restructured non-performing loans, consistent with the Interagency Statement. As of June 30, 2022, five loans totaling $2.2 million were paid off and 13 loans totaling $3.9 million were upgraded to the pass category, while one loan totaling $760,000 remained as non-performing.

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

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


	June 30, 2022
			30-89 Days Past				Total Loans Held for
(In Thousands)	Current		Due		Non-Accrual⁽¹⁾		Investment, Gross

Mortgage loans:
Single-family	$	376,726	$	—	$	1,508	$	378,234
Multi-family		464,676		—		—		464,676
Commercial real estate		90,429		—		—		90,429
Construction		3,216		—		—		3,216
Other		123		—		—		123
Commercial business loans		1,206		—		—		1,206
Consumer loans		83		3		—		86
Total loans held for investment, gross	$	936,459	$	3	$	1,508	$	937,970

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


	June 30, 2021
			30-89 Days Past				Total Loans Held for
(In Thousands)	Current		Due		Non-Accrual⁽¹⁾		Investment, Gross

Mortgage loans:
Single-family	$	259,984	$	—	$	8,288	$	268,272
Multi-family		483,289		—		1,119		484,408
Commercial real estate		95,279		—		—		95,279
Construction		3,040		—		—		3,040
Other		139		—		—		139
Commercial business loans		849		—		—		849
Consumer loans		88		7		—		95
Total loans held for investment, gross	$	842,668	$	7	$	9,407	$	852,082

(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, 2022 and 2021 :


	At June 30,
(In Thousands)	2022		2021
Restructured loans on non-accrual status:
Mortgage loans:
Single-family	$	722	$	6,983
Total		722		6,983

Restructured loans on accrual status:
Mortgage loans:
Single-family		3,748		876
Total		3,748		876
Total restructured loans	$	4,470	$	7,859

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, 2022 and 2021:


	At June 30, 2022
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance⁽¹⁾		Investment

Mortgage loans:
Single-family:
With a related allowance	$	760	$	—	$	760	$	(38)	$	722
Without a related allowance⁽²⁾		3,748		—		3,748		—		3,748
Total single-family		4,508		—		4,508		(38)		4,470


Total restructured loans	$	4,508	$	—	$	4,508	$	(38)	$	4,470

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

(2)	There was no related allowance for loan losses because these 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, 2021
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance⁽¹⁾		Investment

Mortgage loans:
Single-family:
With a related allowance	$	7,151	$	—	$	7,151	$	(384)	$	6,767
Without a related allowance⁽²⁾		1,457		(365)		1,092		—		1,092
Total single-family		8,608		(365)		8,243		(384)		7,859


Total restructured loans	$	8,608	$	(365)	$	8,243	$	(384)	$	7,859

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

(2)	There was no related allowance for loan losses because these 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


	Year Ended June 30,
(In Thousands)	2022		2021

Balance, beginning of year	$	—	$	1
Sales and payments		—		(1)
Balance, end of year	$	—	$	—