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Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Sep. 30, 2022

Categories of Loans

Classes of loans include:		September 30, 2022				June 30, 2022
Real estate loans:
One- to four-family, including home equity loans		$	142,417			$	132,474
Multi-family			98,778				88,247
Commercial			181,934				167,375
Home equity lines of credit			6,778				6,987
Construction			34,314				41,254
Commercial			77,103				80,418
Consumer			9,581				8,981
Total loans			550,905				525,736
Less:
Unearned fees and discounts, net			(225	)			(247	)
Allowance for credit losses			7,023				7,052
Loans, net		$	544,107			$	518,931

Allowance for Credit Losses and Recorded Investment in Loans Based on Portfolio Segment and Impairment Method

The following tables present the activity in the allowance for credit losses and the recorded investment in loans based on portfolio segment as of September 30, 2022 and June 30, 2022, and activity in the allowance for credit losses and allowance for loan losses for the three-month periods ended September 30, 2022 and 2021 and the year ended June 30, 2022:

		Three Months Ended September 30, 2022
		Real Estate Loans
		One- to Four-Family				Multi-Family				Commercial				Home Equity Lines of Credit
Allowance for credit losses:
Balance, beginning of period (prior to adoption of ASU 2016-13)		$	1,028			$	1,375			$	1,985			$	70
Impact of adopting ASU 2016-13			382				(140	)			385				33
Provision charged to expense			126				49				16				(9	)
Losses charged off			—				—				—				—
Recoveries			1				—				—				—
Balance, end of period		$	1,537			$	1,284			$	2,386			$	94
Loans:
Ending balance		$	142,417			$	98,778			$	181,934			$	6,778

		Three Months Ended September 30, 2022 (Continued)
		Construction				Commercial				Consumer				Total
Allowance for credit losses:
Balance, beginning of period (prior to adoption of ASU 2016-13)		$	489			$	2,025			$	80			$	7,052
Impact of adopting ASU 2016-13			192				(818	)			13				47
Provision charged to expense			(132	)			(117	)			—				(67	)
Losses charged off			—				(4	)			(12	)			(16	)
Recoveries			—				4				2				7
Balance, end of period		$	549			$	1,090			$	83			$	7,023
Loans:
Ending balance		$	34,314			$	77,103			$	9,581			$	550,905

		Year Ended June 30, 2022
		Real Estate Loans
		One- to Four-Family				Multi-Family				Commercial				Home Equity Lines of Credit
Allowance for loan losses:
Balance, beginning of year		$	967			$	1,674			$	1,831			$	67
Provision charged to expense			100				(299	)			154				3
Losses charged off			(40	)			—				—				—
Recoveries			1				—				—				—
Balance, end of year		$	1,028			$	1,375			$	1,985			$	70
Ending balance: individually evaluated for impairment		$	—			$	—			$	—			$	—
Ending balance: collectively evaluated for impairment		$	1,028			$	1,375			$	1,985			$	70
Loans:
Ending balance		$	132,474			$	88,247			$	167,375			$	6,987
Ending balance: individually evaluated for impairment		$	1,350			$	—			$	—			$	—
Ending balance: collectively evaluated for impairment		$	131,124			$	88,247			$	167,375			$	6,987

		Year Ended June 30, 2022 (Continued)
		Construction				Commercial				Consumer				Total
Allowance for loan losses:
Balance, beginning of year		$	258			$	1,740			$	62			$	6,599
Provision charged to expense			231				265				38				492
Losses charged off			—				—				(27	)			(67	)
Recoveries			—				20				7				28
Balance, end of year		$	489			$	2,025			$	80			$	7,052
Ending balance: individually evaluated for impairment		$	—			$	—			$	—			$	—
Ending balance: collectively evaluated for impairment		$	489			$	2,025			$	80			$	7,052
Loans:
Ending balance		$	41,254			$	80,418			$	8,981			$	525,736
Ending balance: individually evaluated for impairment		$	—			$	35			$	—			$	1,385
Ending balance: collectively evaluated for impairment		$	41,254			$	80,383			$	8,981			$	524,351

		Three Months Ended September 30, 2021
		Real Estate Loans
		One- to Four-Family				Multi-Family				Commercial				Home Equity Lines of Credit
Allowance for loan losses:
Balance, beginning of year		$	967			$	1,674			$	1,831			$	67
Provision charged to expense			6				(112	)			85				(4	)
Losses charged off			—				—				—				—
Recoveries			1				—				—				—
Balance, end of year		$	974			$	1,562			$	1,916			$	63
Ending balance: individually evaluated for impairment		$	—			$	—			$	—			$	—
Ending balance: collectively evaluated for impairment		$	974			$	1,562			$	1,916			$	63
Loans:		$	117,854			$	97,211			$	163,859			$	6,274
Ending balance		$	1,086			$	—			$	—			$	—
Ending balance: individually evaluated for impairment		$	116,768			$	97,211			$	163,859			$	6,274

		Three Months Ended September 30, 2021 (Continued)
		Construction				Commercial				Consumer				Total
Allowance for loan losses:
Balance, beginning of year		$	258			$	1,740			$	62			$	6,599
Provision charged to expense			63				(174	)			9				(127	)
Losses charged off			—				—				(10	)			(10	)
Recoveries			—				5				2				8
Balance, end of year		$	321			$	1,571			$	63			$	6,470
Ending balance: individually evaluated for impairment		$	—			$	—			$	—			$	—
Ending balance: collectively evaluated for impairment		$	321			$	1,571			$	63			$	6,470
Loans:
Ending balance		$	31,209			$	88,962			$	7,615			$	512,984
Ending balance: individually evaluated for impairment		$	—			$	43			$	—			$	1,129
Ending balance: collectively evaluated for impairment		$	31,209			$	88,919			$	7,615			$	511,855

Credit Risk Profile of Association's Loan Portfolio Based on Risk Rating Category and Year of Origination

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category and year of origination as of September 30, 2022 and the risk rating category and class of loan as of June 30, 2022 (in thousands):

Risk Rating		2022				2021				2020				2019				2018				Prior Years				Total
One- to Four-Family
Pass		$	44,948			$	31,313			$	20,167			$	6,927			$	9,291			$	28,239			$	140,885
Special Mention			—				—				—				—				—				—				—
Substandard			7				108				62				228				1,127				—				1,532
Total		$	44,955			$	31,421			$	20,229			$	7,155			$	10,418			$	28,239			$	142,417
Multi-Family
Pass		$	31,568			$	11,438			$	15,026			$	9,100			$	3,342			$	28,053			$	98,527
Special Mention			—				—				—				—				—				—				—
Substandard			—				—				—				251				—				—				251
Total		$	31,568			$	11,438			$	15,026			$	9,351			$	3,342			$	28,053			$	98,778
Commercial Real Estate
Pass		$	53,745			$	31,906			$	34,004			$	6,137			$	20,101			$	33,109			$	179,002
Special Mention			—				—				—				—				—				—				—
Substandard			—				—				895				84				—				1,953				2,932
Total		$	53,745			$	31,906			$	34,899			$	6,221			$	20,101			$	35,062			$	181,934
Home Equity Line of Credit
Pass		$	1,859			$	1,341			$	875			$	812			$	679			$	1,212			$	6,778
Special Mention			—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—
Total		$	1,859			$	1,341			$	875			$	812			$	679			$	1,212			$	6,778
Construction
Pass		$	15,648			$	12,595			$	6,071			$	—			$	—			$	—			$	34,314
Special Mention			—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—
Total		$	15,648			$	12,595			$	6,071			$	—			$	—			$	—			$	34,314
Commercial Business
Pass		$	16,293			$	20,628			$	12,442			$	9,572			$	1,871			$	9,674			$	70,480
Special Mention			—				—				33				—				—				—				33
Substandard			—				—				1,143				—				4,260				1,187				6,590
Total		$	16,293			$	20,628			$	13,618			$	9,572			$	6,131			$	10,861			$	77,103
Consumer
Pass		$	4,844			$	2,606			$	1,404			$	491			$	173			$	53			$	9,571
Special Mention			—				—				—				—				—				—				—
Substandard			—				—				—				—				10				—				10
Total		$	4,844			$	2,606			$	1,404			$	491			$	183			$	53			$	9,581
Total Loans
Pass		$	168,905			$	111,827			$	89,989			$	33,039			$	35,457			$	100,340			$	539,557
Special Mention			—				—				33				—				—				—				33
Substandard			7				108				2,100				563				5,397				3,140				11,315
Total		$	168,912			$	111,935			$	92,122			$	33,602			$	40,854			$	103,480			$	550,905

		Real Estate Loans
		One- to Four- Family				Multi-Family				Commercial				Home Equity Lines of Credit				Construction				Commercial				Consumer				Total
June 30, 2022:
Pass		$	130,950			$	87,993			$	164,424			$	6,987			$	41,254			$	73,226			$	8,970			$	513,804
Watch			—				—				—				—				—				—				—				—
Substandard			1,524				254				2,951				—				—				7,192				11				11,932
Doubtful			—				—				—				—				—				—				—				—
Loss			—				—				—				—				—				—				—				—
Total		$	132,474			$	88,247			$	167,375			$	6,987			$	41,254			$	80,418			$	8,981			$	525,736

Association's Loan Portfolio Aging Analysis

The following tables present the Company’s loan portfolio aging analysis:

		30-59 Days Past Due				60-89 Days Past Due				Greater Than 90 Days				Total Past Due				Current				Total Loans Receivable				Total Loans > 90 Days & Accruing
September 30, 2022:
Real estate loans:
One- to four-family		$	1,371			$	87			$	1,188			$	2,646			$	139,771			$	142,417			$	62
Multi-family			—				—				—				—				98,778				98,778				—
Commercial			20				—				—				20				181,914				181,934				—
Home equity lines of credit			—				21				—				21				6,757				6,778				—
Construction			—				—				—				—				34,314				34,314				—
Commercial			139				—				—				139				76,964				77,103				—
Consumer			9				17				—				26				9,555				9,581				—
Total		$	1,539			$	125			$	1,188			$	2,852			$	548,053			$	550,905			$	62

		30-59 Days Past Due				60-89 Days Past Due				Greater Than 90 Days				Total Past Due				Current				Total Loans Receivable				Total Loans > 90 Days & Accruing
June 30, 2022:
Real estate loans:
One- to four-family		$	374			$	144			$	1,174			$	1,692			$	130,782			$	132,474			$	47
Multi-family			—				—				—				—				88,247				88,247				—
Commercial			—				—				—				—				167,375				167,375				—
Home equity lines of credit			—				—				—				—				6,987				6,987				—
Construction			—				—				—				—				41,254				41,254				—
Commercial			—				—				—				—				80,418				80,418				—
Consumer			78				21				—				99				8,882				8,981				—
Total		$	452			$	165			$	1,174			$	1,791			$	523,945			$	525,736			$	47

Summary of Impaired Loans

The following tables present impaired loans as of June 30, 2022 and September 30, 2021:

														Year Ended June 30, 2022
		Recorded Balance				Unpaid Principal Balance				Specific Allowance				Average Investment in Impaired Loans				Interest Income Recognized				Interest on Cash Basis
June 30, 2022:
Loans without a specific valuation allowance
Real estate loans:
One- to four-family		$	1,350			$	1,350			$	—			$	1,361			$	15			$	13
Multi-family			—				—				—				—				—				—
Commercial			—				—				—				—				—				—
Home equity line of credit			—				—				—				—				—				—
Construction			—				—				—				—				—				—
Commercial			35				35				—				40				4				4
Consumer			—				—				—				—				—				—
Loans with a specific allowance
Real estate loans:
One- to four-family		$	—			$	—			$	—			$	—			$	—			$	—
Multi-family			—				—				—				—				—				—
Commercial			—				—				—				—				—				—
Home equity line of credit			—				—				—				—				—				—
Construction			—				—				—				—				—				—
Commercial			—				—				—				—				—				—
Consumer			—				—				—				—				—				—
Total:
Real estate loans:
One- to four-family
Multi-family		$	1,350			$	1,350			$	—			$	1,361			$	15			$	13
Commercial			—				—				—				—				—				—
Home equity line of credit			—				—				—				—				—				—
Construction			—				—				—				—				—				—
Commercial			—				—				—				—				—				—
Consumer			35				35				—				40				4				4
			—				—				—				—				—				—
		$	1,385			$	1,385			$	—			$	1,401			$	19			$	17

														Three Months Ended September 30, 2021
		Recorded Balance				Unpaid Principal Balance				Specific Allowance				Average Investment in Impaired Loans				Interest Income Recognized				Interest on Cash Basis
September 30, 2021:
Loans without a specific valuation allowance
Real estate loans:
One- to four-family		$	1,086			$	1,086			$	—			$	1,088			$	5			$	4
Multi-family			—				—				—				—				—				—
Commercial			—				—				—				—				—				—
Home equity line of credit			—				—				—				—				—				—
Construction			—				—				—				—				—				—
Commercial			43				43				—				44				1				1
Consumer			—				—				—				—				—				—
Loans with a specific allowance
Real estate loans:
One- to four-family			—				—				—				—				—				—
Multi-family			—				—				—				—				—				—
Commercial			—				—				—				—				—				—
Home equity line of credit			—				—				—				—				—				—
Construction			—				—				—				—				—				—
Commercial			—				—				—				—				—				—
Consumer			—				—				—				—				—				—
Total:
Real estate loans:
One- to four-family			1,086				1,086				—				1,088				5				4
Multi-family			—				—				—				—				—				—
Commercial			—				—				—				—				—				—
Home equity line of credit			—				—				—				—				—				—
Construction			—				—				—				—				—				—
Commercial			43				43				—				44				1				1
Consumer			—				—				—				—				—				—
		$	1,129			$	1,129			$	—			$	1,132			$	6			$	5

Nonaccrual Loans

The following table presents the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated for which no allowance was recorded at September 30, 2022 and June 30, 2022:

		September 30, 2022								June 30, 2022
		Nonaccrual with no Allowance for Credit Losses				Nonaccrual				Nonaccrual
Mortgages on real estate:
One- to four-family		$	1,127			$	1,127			$	1,127
Multi-family			—				—				—
Commercial			—				—				—
Home equity lines of credit			—				—				—
Construction loans			—				—				—
Commercial business loans			—				—				—
Consumer loans			—				—				—
Total		$	1,127			$	1,127			$	1,127

Loans Modified as Troubled Debt Restructurings

The following table presents the recorded balance, at original cost, of troubled debt restructurings, as of September 30, 2022 and June 30, 2022. All TDRs were performing according to the terms of the restructuring and were accruing as of September 30, 2022, and as of June 30, 2022.

		September 30, 2022				June 30, 2022
Real estate loans
One- to four-family		$	954			$	962
Multi-family			—				—
Commercial			—				—
Home equity lines of credit			—				—
Total real estate loans			954				962
Construction loans			—				—
Commercial business loans			32				36
Consumer loans			—				—
Total		$	986			$	998

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+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
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Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
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