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Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Sep. 30, 2023


Segments of loans include:	September 30, 2023			June 30, 2023
Real estate loans:
One- to four-family, including home equity loans	$	170,154		$	163,854
Multi-family		89,177			89,649
Commercial		193,582			193,707
Home equity lines of credit		8,511			8,066
Construction		72,810			50,973
Commercial		79,194			79,693
Consumer		8,343			8,382

Total loans		621,771			594,324
Less:
Unearned fees and discounts, net		(277	)		(272	)
Allowance for credit losses		7,450			7,139

Loans, net	$	614,598		$	587,457

Allowance for Credit Losses

The following tables present the activity in the allowance for credit losses for the three-month periods ended September 30, 2023 and 2022 and the year ended June 30, 2023:


	Three Months Ended September 30, 2023 Real Estate Loans
	One- to Four-Family		Multi-Family			Commercial			Home Equity Lines of Credit
Allowance for credit losses:
Balance, beginning of period	$	1,898	$	1,121		$	2,369		$	121
Provision charged to expense		8		(6	)		(104	)		13
Losses charged off		—		—			—			—
Recoveries		—		—			—			—

Balance, end of period	$	1,906	$	1,115		$	2,265		$	134

Loans:
Ending balance	$	170,154	$	89,177		$	193,582		$	8,511


	Three Months Ended September 30, 2023 (Continued)
	Construction		Commercial			Consumer			Total
Allowance for credit losses:
Balance, beginning of period	$	765	$	794		$	71		$	7,139
Provision charged to expense		400		(12	)		11			310
Losses charged off		—		—			(7	)		(7	)
Recoveries		—		6			2			8

Balance, end of period	$	1,165	$	788		$	77		$	7,450

Loans:
Ending balance	$	72,810	$	79,194		$	8,343		$	621,771


	Year Ended June 30, 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 charged to expense		487		(114	)		(1	)		18
Losses charged off		—		—			—			—
Recoveries		1		—			—			—

Balance, end of year	$	1,898	$	1,121		$	2,369		$	121

Loans:
Ending balance	$	163,854	$	89,649		$	193,707		$	8,066


	Year Ended June 30, 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 charged to expense		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


	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 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 charged to expense		126		49			16			(9	)
Losses charged off		—		—			—			—
Recoveries		1		—			—			—

Balance, end of year	$	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 year (prior to adoption of ASU 2016-23)	$	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 year	$	549		$	1,090		$	83		$	7,023

Loans:
Ending balance	$	34,314		$	77,103		$	9,581		$	550,905

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

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category and calendar year of origination as of both September 30, 2023 and June 30, 2023 (in thousands):


September 30, 2023
Risk Rating	2023		2022		2021		2020		2019		Prior Years		Total
One- to Four-Family
Pass	$	35,439	$	54,457	$	26,855	$	16,205	$	5,535	$	31,309	$	169,800
Watch		—		—		85		—		—		—		85
Substandard		14		6		30		—		219		—		269

Total	$	35,453	$	54,463	$	26,970	$	16,205	$	5,754	$	31,309	$	170,154

Multi-Family
Pass	$	3,477	$	35,415	$	10,573	$	14,150	$	8,508	$	16,813	$	88,936
Watch		—		—		—		—		—		—		—
Substandard		—		—		—		—		241		—		241

Total	$	3,477	$	35,415	$	10,573	$	14,150	$	8,749	$	16,813	$	89,177


Commercial Real Estate
Pass	$	18,049	$	60,728	$	28,548	$	31,581	$	5,574	$	48,171	$	192,651
Watch		—		—		—		—		—		—		—
Substandard		—		—		—		851		80		—		931

Total	$	18,049	$	60,728	$	28,548	$	32,432	$	5,654	$	48,171	$	193,582

Home Equity Line of Credit
Pass	$	1,804	$	1,879	$	1,535	$	1,078	$	785	$	1,430	$	8,511
Watch		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—

Total	$	1,804	$	1,879	$	1,535	$	1,078	$	785	$	1,430	$	8,511

Construction
Pass	$	15,659	$	32,101	$	16,152	$	8,898	$	—	$	—	$	72,810
Watch		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—

Total	$	15,659	$	32,101	$	16,152	$	8,898	$	—	$	—	$	72,810

Commercial Business
Pass	$	19,603	$	19,005	$	15,471	$	8,421	$	7,036	$	7,982	$	77,518
Watch		—		—		—		—		—		—		—
Substandard		—		55		156		1,408		56		1		1,676

Total	$	19,603	$	19,060	$	15,627	$	9,829	$	7,092	$	7,983	$	79,194

Consumer
Pass	$	3,278	$	2,793	$	1,356	$	697	$	154	$	63	$	8,341
Watch		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		2		2

Total	$	3,278	$	2,793	$	1,356	$	697	$	154	$	65	$	8,343

Total Loans
Pass	$	97,309	$	206,378	$	100,490	$	81,030	$	27,592	$	105,768	$	618,567
Watch		—		—		85		—		—		—		85
Substandard		14		61		186		2,259		596		3		3,119

Total	$	97,323	$	206,439	$	100,761	$	83,289	$	28,188	$	105,771	$	621,771


June 30, 2023
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

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, 2023:
Real estate loans:
One- to four-family	$	1,210	$	418	$	25	$	1,653	$	168,501	$	170,154	$	25
Multi-family		124		—		—		124		89,053		89,177		—
Commercial		404		255		—		659		192,923		193,582		—
Home equity lines of credit		—		19		—		19		8,492		8,511		—
Construction		—		—		—		—		72,810		72,810		—
Commercial		531		85		55		671		78,523		79,194		—
Consumer		25		3		—		28		8,315		8,343		—

Total	$	2,294	$	780	$	80	$	3,154	$	618,617	$	621,771	$	25


	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, 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	$	—

Nonaccrual with no Allowance for Credit Losses and 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, 2023 and June 30, 2023:


	September 30, 2023				June 30, 2023
	Nonaccrual with no Allowance for Credit Losses		Nonaccrual		Nonaccrual with no Allowance for Credit Losses		Nonaccrual
Mortgages on real estate:
One- to four-family	$	—	$	—	$	—	$	—
Multi-family		—		—		—		—
Commercial		—		—		—		—
Home equity lines of credit		—		—		—		—
Construction loans		—		—		—		—
Commercial business loans		—		111		—		115
Consumer loans		—		—		—		2

Total	$	—	$	111	$	—	$	117

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. All TDRs were performing according to the terms of the restructuring and were accruing as of June 30, 2023.


	June 30, 2023
Real estate loans
One- to four-family	$	189
Multi-family		—
Commercial		—
Home equity lines of credit		—

Total real estate loans		189

Construction loans		—
Commercial business loans		26
Consumer loans		—

Total	$	215