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Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Jun. 30, 2023

Categories of Loans

Classes of loans at June 30, include:

		2023				2022
Real estate loans
One- to four-family, including home equity loans		$	163,854			$	132,474
Multi-family			89,649				88,247
Commercial			193,707				167,375
Home equity lines of credit			8,066				6,987
Construction			50,973				41,254
Commercial			79,693				80,418
Consumer			8,382				8,981
			594,324				525,736
Less
Unearned fees and discounts, net			(272	)			(247	)
Allowance for credit losses			7,139				7,052
Loans, net		$	587,457			$	518,931

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

Allowance for Credit Losses

The following tables present the activity in the allowance for credit losses and the recorded investment in loans based on loan classes as of June 30, 2023 and 2022:

		2023
		Real Estate Loans
		One- to four- family				Multi-family				Commercial				Home Equity Lines of Credit
Allowance for credit losses:
Balance, beginning of year (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 for credit losses			487				(114	)			(1	)			18
Losses charged off			—				—				—				—
Recoveries			1				—				—				—
Balance, end of period		$	1,898			$	1,121			$	2,369			$	121
Loans:
Ending balance		$	163,854			$	89,649			$	193,707			$	8,066
		2023 (Continued)
		Construction				Commercial				Consumer				Total
Allowance for credit losses:
Balance, beginning of year (prior to adoption of ASU 2016-13)		$	489			$	2,025			$	80			$	7,052
Impact of adopting ASU 2016-13			192				(818	)			13				47
Provision for credit losses			84				(422	)			—				52
Losses charged off			—				(14	)			(37	)			(51	)
Recoveries			—				23				15				39
Balance, end of year		$	765			$	794			$	71			$	7,139
Loans:
Ending balance		$	50,973			$	79,693			$	8,382			$	594,324

		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 period		$	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

		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

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 June 30, 2023 and the risk rating category and class of loan as of June 30, 2022 (in thousands):

Risk Rating		2023				2022				2021				2020				2019				Prior Years				Total
One- to Four-Family
Pass		$	22,032			$	56,054			$	27,843			$	18,468			$	5,996			$	32,729			$	163,122
Watch			—				—				—				—				—				335				335
Substandard			14				6				94				61				222				—				397
Total		$	22,046			$	56,060			$	27,937			$	18,529			$	6,218			$	33,064			$	163,854
Multi-Family
Pass		$	674			$	37,826			$	10,647			$	14,399			$	8,587			$	17,272			$	89,405
Watch			—				—				—				—				—				—				—
Substandard			—				—				—				—				244				—				244
Total		$	674			$	37,826			$	10,647			$	14,399			$	8,831			$	17,272			$	89,649

Commercial Real Estate
Pass		$	12,214			$	63,645			$	29,320			$	32,502			$	5,844			$	49,239			$	192,764
Watch			—				—				—				—				—				—				—
Substandard			—				—				—				862				81				—				943
Total		$	12,214			$	63,645			$	29,320			$	33,364			$	5,925			$	49,239			$	193,707
Home Equity Line of Credit
Pass		$	982			$	2,554			$	1,301			$	1,035			$	789			$	1,405			$	8,066
Watch			—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—
Total		$	982			$	2,554			$	1,301			$	1,035			$	789			$	1,405			$	8,066
Construction
Pass		$	2,882			$	29,188			$	10,432			$	8,471			$	—			$	—			$	50,973
Watch			—				—				—				—				—				—				—
Substandard			—				—				—				—				—				—				—
Total		$	2,882			$	29,188			$	10,432			$	8,471			$	—			$	—			$	50,973
Commercial Business
Pass		$	12,449			$	20,004			$	17,673			$	8,797			$	7,669			$	8,841			$	75,433
Watch			—				—				—				—				—				—				—
Substandard			2,779				59				174				1,189				57				2				4,260
Total		$	15,228			$	20,063			$	17,847			$	9,986			$	7,726			$	8,843			$	79,693
Consumer
Pass		$	2,391			$	3,181			$	1,653			$	834			$	211			$	107			$	8,377
Watch			—				—				—				—				—				—				—
Substandard			—				—				1				—				—				4				5
Total		$	2,391			$	3,181			$	1,654			$	834			$	211			$	111			$	8,382
Total Loans
Pass		$	53,624			$	212,452			$	98,869			$	84,506			$	29,096			$	109,593			$	588,140
Watch			—				—				—				—				—				335				335
Substandard			2,793				65				269				2,112				604				6				5,849
Total		$	56,417			$	212,517			$	99,138			$	86,618			$	29,700			$	109,934			$	594,324

		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
Substandard			1,524				254				2,951				—				—				7,192				11				11,932
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				90 Days or Greater				Total Past Due				Current				Total Loans Receivable				Total Loans 90 Days Past Due & Accruing
June 30, 2023:
Real estate loans:
One- to four-family		$	523			$	116			$	—			$	639			$	163,215			$	163,854			$	—
Multi-family			—				—				—				—				89,649				89,649				—
Commercial			153				—				—				153				193,554				193,707				—
Home equity lines of credit			—				20				—				20				8,046				8,066				—
Construction			—				—				—				—				50,973				50,973				—
Commercial			56				—				58				114				79,579				79,693				—
Consumer			47				6				2				55				8,327				8,382				—
Total		$	779			$	142			$	60			$	981			$	593,343			$	594,324			$	—

		30-59 Days Past Due				60-89 Days Past Due				90 Days or Greater				Total Past Due				Current				Total Loans Receivable				Total Loans 90 Days Past Due & 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 for year ended June 30, 2022:

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

Nonaccrual Loans

The following table presents the Company’s nonaccrual loans at June 30, 2023 and 2022:

		2023				2022
Real estate loans
One- to four-family, including home equity loans		$	—			$	1,127
Multi-family			—				—
Commercial			—				—
Home equity lines of credit			—				—
Construction			—				—
Commercial			115				—
Consumer			2				—
Total		$	117			$	1,127

Loans Modified as Troubled Debt Restructurings

The following table presents the recorded balance, at original cost, of troubled debt restructurings, as of June 30, 2023 and 2022. All were performing according to the terms of the restructuring as of both June 30, 2023 and June 30, 2022. All loans listed as of both June 30, 2023 and 2022 were accruing.

		June 30, 2023				June 30, 2022
Real estate loans
One- to four-family, including home equity loans		$	189			$	962
Multi-family			—				—
Commercial			—				—
Home equity lines of credit			—				—
Total real estate loans			189				962
Construction			—				—
Commercial			26				36
Consumer			—				—
Total		$	215			$	998

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