XML 31 R14.htm IDEA: XBRL DOCUMENT v3.24.3
Loans
 12 Months Ended
Jun. 30, 2024
Loans [Abstract]  
LOANS

NOTE C - LOANS

 

The composition of the loan portfolio at June 30 was as follows:

 

(in thousands)  2024   2023 
Residential real estate        
One- to four-family  $256,216   $240,076 
Multi-family   15,815    19,067 
Construction   13,815    12,294 
Land   964    470 
Farm   1,169    1,346 
Nonresidential real estate   34,308    30,217 
Commercial and industrial   700    1,184 
Consumer and other          
Loans on deposits   819    855 
Home equity   10,644    9,217 
Automobile   117    104 
Unsecured   585    611 
    335,152    315,441 

Allowance for credit losses

   (2,127)   (1,634)
   $333,025   $313,807 

 

The amounts above include net deferred loan fees of $288,000 and $330,000 as of June 30, 2024 and 2023.

 

The following table presents the amortized cost basis of collateral-dependent loans by portfolio class as of June 30, 2024. The recorded investment in loans excludes accrued interest receivable due to immateriality.

 

(in thousands)  Amortized Cost
Basis		   Ending
allowance on
collateral-
dependent
loans		 
Loans individually evaluated for impairment:        
Residential real estate:        
One- to four-family  $2,674   $
        –
 
Nonresidential real estate   1,925    
–
 
Commercial and industrial   
–
    
–
 
   $4,599    
–
 

 

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of June 30, 2024 and 2023. The company reported $175,000 and $196,000 in loans acquired with deteriorated credit quality at June 30, 2024 and 2023, respectively.

 

June 30, 2024:

 

(in thousands)  Loans
individually
evaluated		   Loans
acquired with
deteriorated
credit
quality*		   Ending
loans
balance		   Ending
allowance
attributed to
loans		 
Loans individually evaluated for impairment:                    
Residential real estate                    
One- to four-family  $2,674   $175   $2,849   $
-
 
Nonresidential real estate   1,925    
-
    1,925    
-
 
Home Equity   
-
    
-
    
-
    - 
    4,599    175    4,744    
-
 
Loans collectivelly evaluated for impairment:                    
Residential real estate                    
One- to four-family            $253,367   $1661 
Multi-family             15,815    100 
Construction             13,815    122 
Land             964    28 
Farm             1,169    4 
Nonresidential real estate             32,383    192 
Commercial and industrial             700    3 
Consumer and other                    
Loans on deposits             819    
-
 
Home equity             10,644    14 
Automobile             117    
-
 
Unsecured             585    3 
              330,378    2,127 
             $335,152   $2,127 

 

June 30, 2023:

 

(in thousands)  Loans
individually
evaluated		   Loans
acquired with
deteriorated
credit
quality*		   Ending
loans
balance		   Ending
allowance
attributed to
loans		 
Loans individually evaluated for impairment:                
Residential real estate                
One- to four-family  $2,833   $196   $3,029   $
-
 
Nonresidential real estate   1,717    
-
    1,717    
-
 
Home Equity   267    
-
    267    
-
 
    4,817    196    5,013    
-
 
Loans collectivelly evaluated for impairment:                    
Residential real estate                    
One- to four-family            $237,047   $857 
Multi-family             19,067    278 
Construction             12,294    41 
Land             470    1 
Farm             1,346    4 
Nonresidential real estate             28,500    405 
Commercial and industrial             1,184    23 
Consumer and other                    
Loans on deposits             855    1 
Home equity             8,950    23 
Automobile             104    
-
 
Unsecured             611    1 
              310,428    1,634 
             $315,441   $1,634 

 

* These loans were evaluated at acquisition date at their estimated fair value and there has been no subsequent deterioration since acquisition.

 

The following table presents impaired loans by class of loans as of and for the years ended June 30, 2024 and 2023: 

 

(in thousands)  Unpaid
Principal
Balance and
Recorded
Investment		   Allowance
for Loan
Losses
Allocated		   Average
Recorded
Investment		   Interest
Income
Recognized		   Cash Basis
Income
Recognized		 
                     
June 30, 2024:                    
                     
With no related allowance recorded:                    
Residential real estate                    
One- to four-family  $2,849   $
         -
   $3,146   $104   $104 
Multi-family   
-
    
-
    
-
    
-
    
-
 
Farm   
-
    
-
    
-
    
-
    
-
 
Nonresidential real estate   1,925    
-
    1,893    54    54 
Consumer and other                         
Home equity   
-
    
-
    89    
-
    
-
 
Unsecured   
-
    
-
    
-
    
-
    
-
 
   $4,774   $
-
   $5,128   $158   $158 
                          
June 30, 2023:                         
                          
With no related allowance recorded:                         
Residential real estate                         
One- to four-family  $3,029   $
-
   $3,325   $161   $161 
Multi-family   
-
    
-
    285    22    22 
Farm   
-
    
-
    135    15    15 
Nonresidential real estate   1,717    
-
    1,395    63    63 
Consumer and other                         
Home equity   267    
-
    177    6    6 
Unsecured   
-
    
-
    2    1    1 
   $5,013   $
-
   $5,319   $268   $268 

 

The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of June 30, 2024 and 2023. The tables include loans acquired with deteriorated credit quality. At June 30, 2024, the table below includes approximately $175,000 of loans on nonaccrual and no loans past due over 89 days and still accruing of loans acquired with deteriorated credit quality, while at June 30, 2023, approximately $197,000 of loans on nonaccrual and no loans past due over 89 days and still accruing represent such loans. At both June 30, 2024 and 2023, there is $0 in allowance for credit loss for nonaccrual loans as they have incurred a loss in the amount that brings them to fair value.

  

   June 30, 2024   June 30, 2023 
(in thousands)  Nonaccrual   Loans
Past Due
Over 89
Days Still
Accruing		   Nonaccrual   Loans
Past Due
Over 89
Days Still
Accruing		 
                 
Residential real estate                
One- to four-family  $2,678   $221   $3,028   $365 
Multi-family   
-
    
-
    
-
    
-
 
Farm   
-
    
-
    
-
    
-
 
Nonresidential real estate   969    
-
    1,013    
-
 
Commercial and industrial   
-
    
-
    
-
    
-
 
Consumer and other                    
Home equity   
-
    
-
    267    
-
 
Unsecured   
-
    28    
-
    28 
   $3,647   $249   $4,308   $393 

 

One- to four-family loans in process of foreclosure totaled $926,000 and $766,000 at June 30, 2024 and 2023, respectively.

 

Troubled Debt Restructurings:

 

Prior to the adoption of ASC 326 a Troubled Debt Restructuring (“TDR”) was the situation where the Bank granted a concession to the borrower that the Banks would not otherwise have considered due to the borrower’s financial difficulties. All TDRs are considered “impaired.”

 

At June 30, 2023, the Company had $464,000 of loans classified as TDRs.

 

There were no loans modified to borrowers experiencing financial difficulty during the year ended June 30, 2024.

 

The following tables present the aging of the principal balance outstanding past due loans as of June 30, 2024 and 2023, by class of loans. The tables include loans acquired with deteriorated credit quality. At June 30, 2024, the table below includes $28,000 in loans 30-59 days past due and approximately $33,000 of loans past due over 90 days that were acquired with deteriorated credit quality, while at June 30, 2023, the table below includes $68,000 in loans 30-89 days past due and approximately $58,000 of loans past due over 90 days of such loans.

 

June 30, 2024: 

 

(in thousands)  30-59 Days
Past Due		   60-89 Days Past Due  

90 Days or Greater

   Total Past
Due		   Loans Not
Past Due		   Total 
                         
Residential real estate                        
One- to four-family  $4,517   $847   $1,080   $6,444   $249,772   $256,216 
Multi-family   
-
    
-
    
-
    
-
    15,815    15,815 
Construction   1,085    60    
-
    1,145    12,670    13,815 
Land   55    
-
    
-
    55    909    964 
Farm   
-
    
-
    
-
    
-
    1,169    1,169 
Nonresidential real estate   840    
-
    
-
    840    33,468    34,308 
Commercial and industrial   4    
-
    
-
    4    696    700 
Consumer and other                            
Loans on deposits   
-
    
-
    
-
    
-
    819    819 
Home equity   
-
    
-
    28    28    10,616    10,644 
Automobile   
-
    
-
    
-
    
-
    117    117 
Unsecured   14    
 
    
-
    14    571    585 
   $6,515   $907   $1,108   $8,530   $326,662   $335,152 

 

June 30, 2023:

 

(in thousands)  30-59 Days
Past Due		   60-89 Days Past Due  

90 Days or Greater

   Total Past
Due		   Loans Not
Past Due		   Total 
                         
Residential real estate                        
One- to four-family  $2,466   $949   $1,514   $4,929   $235,147   $240,076 
Multi-family   
-
    
-
    
-
    
-
    19,067    19,067 
Construction   
-
    
-
    
-
    
-
    12,294    12,294 
Land   
-
    
-
    
-
    
-
    470    470 
Farm   
-
    
-
    
-
    
-
    1,346    1,346 
Nonresidential real estate   662    
-
    
-
    662    29,555    30,217 
Commercial and industrial   
-
    
-
    28    28    1,156    1,184 
Consumer and other                             
Loans on deposits   
-
    
-
    
-
    
-
    855    855 
Home equity   168    
-
    267    435    8,782    9,217 
Automobile   
-
    
-
    
-
    
-
    104    104 
Unsecured   17    
-
    
-
    17    594    611 
   $3,313   $949   $1,809   $6,071   $309,370   $315,441 

 

Credit Quality Indicators:

 

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on an annual basis. The Company uses the following definitions for risk ratings:

 

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

 

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

 

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.

 

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be pass rated loans. Loans listed that are not rated are included in groups of homogeneous loans and are evaluated for credit quality based on performing status. See the aging of past due loan table above. As of June 30, 2024, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

 

                           Revolving     
(in thousands)  Term Loans Amortized Cost by Origination Fiscal Year   Loans
Amortized		     
As of March 31, 2024  2024   2023   2022   2021   2020   Prior   Cost Basis   Total 
Residential real estate:                                
One- to four-family                                
Risk Rating:                                
Pass  $29,792   $50,814   $47,346   $42,943   $26,794   $52,616   $
-
   $250,485 
Special mention   
-
    
-
    
-
    
-
    
-
    667    
-
    667 
Substandard   
-
    
-
    
--
    81    110    4,873    
-
    5,064 
Doubtful   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total  $29,792   $50,814   $47,346   $43,024   $26,904   $58,156   $
-
   $256,216 
                                         
Current period gross charge offs  $
-
   $
-
   $
-
   $
-
   $
-
   $16   $
-
   $16 
                                         
Multi-family                                        
Risk Rating:                                        
Pass  $400   $6,076   $5,907   $1,239   $
-
   $2,193   $
-
   $15,815 
Special mention   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Substandard   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Doubtful   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total  $400   $6,076   $5,907   $1,239   $
-
   $2,193   $
-
   $15,815 
                                         
Current period gross charge offs  $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
 
                                         
Construction                                        
Risk Rating:                                        
Pass  $8,230   $5,562   $23   $
-
   $
-
   $
-
   $
-
   $13,815 
Special mention   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Substandard   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Doubtful   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total  $8,230   $5,562   $23   $
-
   $
-
   $
-
   $
-
   $13,815 
                                         
Current period gross charge offs  $
-
   $6   $
-
   $
-
   $
-
   $
-
   $
-
   $6 
                                         
Land                                        
Risk Rating:                                        
Pass  $401   $252   $213   $
-
   $
-
   $70   $
-
   $936 
Special mention   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Substandard   
-
    
-
    
-
    
-
    
-
    28    
-
    
-
 
Doubtful   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total  $401   $252   $213   $
-
   $
-
   $98   $
-
   $964 
                                         
Current period gross charge offs  $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
 
                                         
Farm                                        
Risk Rating:                                        
Pass  $
-
   $
-
   $221   $
-
   $
-
   $948   $
-
   $1,169 
Special mention   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Substandard   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Doubtful   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total  $
-
   $
-
   $221   $
-
   $
-
   $948   $
-
   $1,169 
                                         
Current period gross charge offs  $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
 
                                         
Nonresidential real estate                                        
Risk Rating:                                        
Pass  $7,828   $1,561   $3,099   $3,406   $5,711   $10,648   $-   $32,253 
Special mention   
-
    
-
    
-
    
-
    
-
    130    -    130 
Substandard   
-
    1,017    
-
    
-
    
-
    908    -    1,925 
Doubtful   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total  $7,828   $2,578   $3,099   $3,406   $5,711   $11,686   $
-
   $34,308 
                                         
Current period gross charge offs  $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
 
                                         
Commercial and industrial                                        
Risk Rating:                                        
Pass  $482   $214   $
-
   $4   $
-
   $
-
   $
-
   $700 
Special mention   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Substandard   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Doubtful   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total  $482   $214   $
-
   $4   $
-
   $
-
   $
-
   $700 
                                         
Current period gross charge offs  $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
 
                                         
Share Loans                                        
Risk Rating:                                        
Pass  $116   $113   $20   $15   $176   $379   $
-
   $819 
Special mention   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Substandard   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Doubtful   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total  $116   $113   $20   $15   $176   $379   $
-
   $819 
                                         
Current period gross charge offs  $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
 
                                         
Home Equity                                        
Risk Rating:                                        
Pass  $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $10,490   $10,490 
Special mention   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Substandard   
-
    
-
    
-
    
-
    
-
    
-
    154    154 
Doubtful   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total  $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $10,644   $10,644 
                                         
Current period gross charge offs  $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
 
                                         
Auto                                        
Risk Rating:                                        
Pass  $68   $9   $30   $3   $2   $5   $
-
   $117 
Special mention   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Substandard   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Doubtful   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total  $68   $9   $30   $3   $2   $5   $
-
   $117 
                                         
Current period gross charge offs  $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
 
                                         
Unsecured                                        
Risk Rating:                                        
Pass  $285   $34   $24   $174   $13   $55   $
-
   $585 
Special mention   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Substandard   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Doubtful   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total  $285   $34   $24   $174   $13   $55   $
-
   $585 
                                         
Current period gross charge offs  $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
   $
-
 

 

As of June 30, 2024, and 2023, and based on the most recent analysis performed, the risk category of loans by class of loans was as follows:

 

June 30, 2024:

 

(in thousands)  Pass   Special
Mention		   Substandard   Doubtful 
                 
Residential real estate                
One- to four-family  $250,485   $667   $5,064   $
        -
 
Multi-family   15,815    
-
    
-
    
-
 
Construction   13,815    
-
    
-
    
-
 
Land   936    
-
    28    
-
 
Farm   1,169    
-
    
-
    
-
 
Nonresidential real estate   32,253    130    1,925    
-
 
Commercial and industrial   700    
-
    
-
    
-
 
Consumer and other                    
Loans on deposits   819    
-
    
-
    
-
 
Home equity   10,490    
-
    154    
-
 
Automobile   117    
-
    
-
    
-
 
Unsecured   585    
-
    
-
    
-
 
   $327,184   $797   $7,171   $
-
 

 

June 30, 2023:

 

(in thousands)  Pass   Special
Mention		   Substandard   Doubtful 
                 
Residential real estate                
One- to four-family  $234,765   $170   $5,141   $
         -
 
Multi-family   19,067    
-
    
-
    
-
 
Construction   12,294    
-
    
-
    
-
 
Land   470    
-
    
-
    
-
 
Farm   1,346    
-
    
-
    
-
 
Nonresidential real estate   27,816    684    1,717    
-
 
Commercial and industrial   1,184    
-
    
-
    
-
 
Consumer and other                    
Loans on deposits   855    
-
    
-
    
-
 
Home equity   8,879    
-
    338    
-
 
Automobile   104    
-
    
-
    
-
 
Unsecured   611    
-
    
-
    
-
 
   $307,391   $854   $7,196   $
-
 

 

The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended June 30, 2024 and 2023:

 

June 30, 2024:

 

(in thousands)  Pre-ASC
326
Adoption		   Impact of
ASC 326
Adoption		   As
Reported
Under
ASC 326		   Provision
for (recovery of)
credit losses
on loans		   Loans
charged
off		   Recoveries   Credit
Losses for
Unfunded
Liabilities		   Ending
balance		 
Residential real estate                                        
One- to four-family  $857   $740   $1,597   $82   $(18)  $
         -
   $
      -
   $1,661 
Multi-family   278    (145)   133    (33)   
-
    
-
    
-
    100 
Construction   41    97    138    (12)   
-
    
-
    (4)   122 
Land   1    14    15    13    
-
    
-
    
-
    28 
Farm   4    2    6    (2)   
-
    
-
    
-
    4 
Nonresidential real estate   405    (221)   184    8    
-
    
-
    
-
    192 
Commercial and industrial   23    (18)   5    (2)   
-
    
-
    
-
    3 
Consumer and other                                        
Loans on deposits   1    (1)   
-
    
-
    
-
    
-
    
-
    
-
 
Home equity   23    28    51    (31)   (8)   4    (2)   14 
Automobile   
-
    1    1    (1)   
-
    
-
    
-
    
-
 
Unsecured   1    
-
    1    2    
-
    
-
    
-
    3 
   $1,634   $497   $2,131   $24   $(26)  $4   $(6)  $2,127 

 

June 30, 2023:

 

(in thousands)  Beginning
balance		   Provision
(credit) for
loan losses		   Loans
charged off		   Recoveries   Ending
balance		 
                     
Residential real estate                    
One- to four-family  $800   $73   $(29)  $13   $857 
Multi-family   231    47    
-
    
-
    278 
Construction   4    37    
-
    
-
    41 
Land   3    (2)   
-
    
-
    1 
Farm   5    (1)   
-
    
-
    4 
Nonresidential real estate   461    (64)   
-
    8    405 
Commercial and industrial   2    21    
-
    
-
    23 
Consumer and other                         
Loans on deposits   1    
-
    
-
    
-
    1 
Home equity   21    2    
-
    
-
    23 
Automobile   
-
         
-
    
-
    - 
Unsecured   1    
-
    
-
    
-
    1 
   $1,529   $113   $(29)  $21   $1,634 

  

Purchased Loans:

 

The Company purchased loans during the fiscal year ended June 30, 2013 for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans, net of a purchase credit discount of $25,000 and $88,000, at June 30, 2024 and 2023, respectively, was as follows:

 

(in thousands)  2024   2023 
Residential real estate          
One- to four-family  $175   $196 

 

Accretable yield, or income expected to be collected on loans purchased during fiscal year 2013, for the years ended June 30 was as follows:

 

(in thousands)  2024   2023 
Balance at beginning of year  $294   $339 
Accretion of income   (34)   (45)
Balance at end of year  $260   $294 

 

For those purchased loans disclosed above, the Company made no increase in allowance for loan losses for the years ended June 30, 2024 or 2023, nor were any allowance for loan losses reversed during those years.