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LOANS (Tables)

6 Months Ended

Dec. 31, 2023

A summary of the balances of loans follows:


(In thousands)	December 31, 2023			June 30, 2023
Mortgage loans on real estate:
Residential:
1-4 family	$	138,445		$	140,109
Multifamily		12,692			12,638
Second mortgages and home equity lines of credit		3,542			2,699
Commercial		20,047			20,323
Total mortgage loans on real estate		174,726			175,769
Consumer loans:
Consumer		64			49
Home improvement		2,220			2,191
Total other loans		2,284			2,240
Total loans		177,010			178,009
Allowance for credit losses(1)		(1,641	)		(1,747	)
Net deferred loan fees		(395	)		(351	)
Loans, net	$	174,974		$	175,911

(1)

The Company adopted ASU 2016-13 on July 1, 2023 with a modified retrospective approach. Accordingly, at December 31, 2023, the allowance for credit losses was determined in accordance with ASC 326, “Financial Instruments-Credit Losses.”

Schedule of illustrates the impact of ASC 326

The following table illustrates the impact of ASC 326:


	Pre-ASC Adoption			As Reported Under ASC 326
(In thousands)	June 30, 2023			July 1, 2023			Impact of ASC 326 Adoption
Assets
Allowance for credit losses on securities held to maturity	$	-		$	(276	)	$	(276	)
Allowance for credit losses on loans		(1,747	)		(1,759	)		(12	)
Deferred tax asset on allowance for credit losses		466			378			(88	)

Liabilities
Allowance for credit losses on off-balance sheet exposures	$	-		$	23		$	23

Shareholders' Equity
Retained earnings	$	50,416		$	50,193		$	(223	)

Schedule Of Allowance For Loan Losses And Allocation Of The Allowance To Loan Segments

The following table presents activity in the allowance for credit losses by loan segment for the three months ended December 31, 2023 and for the allowance for loan losses for the three months ended December 31, 2022 is as follows:


(In thousands)	Residential 1-4 Family			Multifamily		Second Mortgages and Home Equity Lines of Credit		Construction		Commercial Real Estate			Consumer		Home Improvement		Unallocated			Total
Allowance for credit losses for loans
Balance at September 30, 2023	$	1,071		$	181	$	43	$	-	$	291		$	2	$	61	$	-		$	1,649
Provision (benefit) for credit losses		(20	)		7		4		-		(2	)		-		3		-			(8	)
Loans charged-off		-			-		-		-		-			-		-		-			-
Recoveries		-			-		-		-		-			-		-		-			-
Balance at December 31, 2023	$	1,051		$	188	$	47	$	-	$	289		$	2	$	64	$	-		$	1,641

Allowance for credit losses for off-balance sheet exposures
Balance at September 30, 2023	$	4		$	6	$	-	$	-	$	-		$	-	$	-	$	-		$	10
Provision (benefit) for credit losses		(4	)		5		-		-		-			-		-		-			1
Balance at December 31, 2023	$	-		$	11	$	-	$	-	$	-		$	-	$	-	$	-		$	11

Allowance for loan losses
Balance at September 30, 2022	$	990		$	196	$	27	$	4	$	266		$	-	$	65	$	199		$	1,747
Provision (credit) for loan losses		(23	)		3		1		2		93			-		-		(76	)		-
Loans charged-off		-			-		-		-		-			-		-		-			-
Recoveries		-			-		-		-		-			-		-		-			-
Balance at December 31, 2022	$	967		$	199	$	28	$	6	$	359		$	-	$	65	$	123		$	1,747

The balance of $556,000 in accrued interest receivable is excluded from amortized cost and the calculation of the allowance for credit losses at December 31, 2023.

The $8,000 reversal for credit losses for loans was primarily a result of changes in the economic forecast. The $1,000 provision for credit losses for off-balance sheet exposures was primarily due to an increase of $185,000 in unfunded commitments for the three months ended December 31, 2023.

The following table presents activity in the allowance for credit losses by loan segment for the six months ended December 31, 2023 and for the allowance for loan losses for the six months ended December 31, 2022 is as follows:


(In thousands)	Residential 1-4 Family			Multifamily			Second Mortgages and Home Equity Lines of Credit			Construction		Commercial Real Estate			Consumer			Home Improvement			Unallocated					Total
Allowance for credit losses for loans
Balance at June 30, 2023	$	974		$	190		$	29		$	-	$	346		$	-		$	64		$	144				$	1,747
Adoption of ASU 2016-13(1)		139			2			23			-		(19	)	$	2		$	9			(144	)			$	12
Adjusted beginning balance	$	1,113		$	192		$	52		$	-	$	327		$	2		$	73		$	-				$	1,759
Provision (benefit) for credit losses		(62	)		(4	)		(5	)		-		(38	)		-			(9	)		-					(118	)
Loans charged-off		-			-			-			-		-			-			-			-					-
Recoveries		-			-			-			-		-			-			-			-					-
Balance at December 31, 2023	$	1,051		$	188		$	47		$	-	$	289		$	2		$	64		$	-				$	1,641

Allowance for credit losses for off-balance sheet exposures
Balance at June 30, 2023	$	-		$	-		$	-		$	-	$	-		$	-		$	-		$	-				$	-
Adoption of ASU 2016-13		5			7			-			-		7			4			-			-					23
Adjusted beginning balance	$	5		$	7		$	-		$	-	$	7		$	4		$	-		$	-		$	-	$	23
Provision (benefit) for credit losses		(5	)		4			-			-		(7	)		(4	)		-			-					(12	)
Balance at December 31, 2023	$	-		$	11		$	-		$	-	$	-		$	-		$	-		$	-		$	-	$	11

Allowance for loan losses
Balance at June 30, 2022	$	986		$	215		$	22		$	3	$	252		$	-		$	61		$	208				$	1,747
Provision (credit) for loan losses		(19	)		(16	)		6			3		107						4			(85	)				-
Loans charged-off		-			-			-			-		-			-			-			-					-
Recoveries		-			-			-			-		-			-			-			-					-
Balance at December 31, 2022	$	967		$	199		$	28		$	6	$	359		$	-		$	65		$	123				$	1,747

Allowance for Credit Losses

The allocation of the allowance for credit losses on loans to each category is presented as of December 31, 2023.


(In thousands)	Residential Real Estate		Commercial Real Estate		Consumer		Total

December 31, 2023
Allowance for credit losses on loans:
Individually evaluated for credit losses	$	21	$	-	$	-	$	21
Collectively evaluated for credit losses		1,265		289		66		1,620
Total	$	1,286	$	289	$	66	$	1,641
Loans
Individually evaluated for credit losses	$	2,096	$	-	$	-	$	2,096
Collectively evaluated for credit losses		152,583		20,047		2,284	$	174,914
	$	154,679	$	20,047	$	2,284		177,010

The allocation of the allowance for loan losses to each category is presented as of June 30, 2023 under the incurred loss model.


(In thousands)	Residential 1-4 Family		Multifamily		Second Mortgages and Home Equity Lines of Credit		Construction		Commercial Real Estate		Consumer		Home Improvement		Unallocated		Total
June 30, 2023
Allowance for impaired loans	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Allowance for non-impaired loans		974		190		29		-		346		-		64		144		1,747
Total allowance for loan losses	$	974	$	190	$	29	$	-	$	346	$	-	$	64	$	144	$	1,747

Impaired loans	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Non-impaired loans		140,109		12,638		2,699		-		20,323		49		2,191		-		178,009
Total loans	$	140,109	$	12,638	$	2,699	$	-	$	20,323	$	49	$	2,191	$	-	$	178,009

Summary of Amortized Cost Balances Loan Portfolio

The following table details the amortized cost balances of the Company's loan portfolio presented by risk rating and origination year as of the periods presented:


													Revolving		Revolving Loans
	Term Loans at Amortized Cost by Fiscal Origination Year												Loans		Converted to
(In thousands)	2024		2023		2022		2021		2020		Prior		Amortized Cost		Term Loans		Total
December 31, 2023
Residential 1-4 family:
Pass	$	5,106	$	10,842	$	29,776	$	17,159	$	18,330	$	54,990		307		234	$	136,744
Special Mention		-		-		-		-		360		1,248		7		-		1,615
Substandard		-		-		-		-		-		94		-		-		94
Total residential 1-4 family		5,106		10,842		29,776		17,159		18,690		56,332		314		234		138,453

Multifamily:
Pass		-		-		3,851		2,292		1,135		3,987		1,039		-		12,304
Special Mention		-		-		-		-		-		339		48		-		387
Total multifamily		-		-		3,851		2,292		1,135		4,326		1,087		-		12,691

Second mortgages and home equity lines of credit:
Pass		955		815		129		220		59		324		1,040		-		3,542
Total second mortgages and home equity lines of credit		955		815		129		220		59		324		1,040		-		3,542

Commercial:
Pass		500		8,742		1,073		927		870		6,488		1,038		410		20,048
Total commercial		500		8,742		1,073		927		870		6,488		1,038		410		20,048

Consumer:
Pass		27		-		-		-		13		24		-		-		64
Total consumer		27		-		-		-		13		24		-		-		64

Home improvement:
Pass		267		428		403		403		181		135		-		-		1,817
Total home improvement		267		428		403		403		181		135		-		-		1,817

Total loans
Pass		6,855		20,827		35,232		21,001		20,588		65,948		3,424		644		174,519
Special Mention		-		-		-		-		360		1,587		55		-		2,002
Substandard		-		-		-		-		-		94		-		-		94
Net deferred fees		47		117		51		67		29		84		-		-		395
Total loans	$	6,902	$	20,944	$	35,283	$	21,068	$	20,977	$	67,713	$	3,479	$	644	$	177,010

Schedule Of Bank's Loans By Risk Ratings

The following table presents information on the Company’s loans by risk ratings:


(In thousands)	Residential 1-4 Family		Multifamily		Second Mortgages and Home Equity Lines of Credit		Commercial Real Estate		Consumer		Home Improvement		Total
June 30, 2023
Pass	$	138,678	$	12,638	$	2,699	$	20,323	$	49	$	2,191	$	176,578
Special mention		1,431		-		-		-		-		-		1,431
Total loans	$	140,109	$	12,638	$	2,699	$	20,323	$	49	$	2,191	$	178,009