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Loans Receivable

9 Months Ended

Mar. 31, 2024

Note 4. Loans receivable

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal amount outstanding, adjusted for deferred loan origination costs, net, discounts on purchased loans, and the allowance for credit losses. Interest income is accrued on the unpaid principal balance unless the collectability of the loan is in doubt. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on one- to four-family residential loans is generally discontinued at the time a loan is 180 days delinquent and on other loans at the time a loan is 90 days delinquent. All other loans are moved to non-accrual status in accordance with the Company’s policy, typically 90 days after the loan becomes delinquent. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The composition of the loan portfolio was as follows:

	March 31,			June 30,
(in thousands)	2024			2023
Residential real estate
One- to four-family	$	254,789		$	240,076
Multi-family		15,755			19,067
Construction		14,239			12,294
Land		1,069			470
Farm		1,313			1,346
Nonresidential real estate		30,329			30,217
Commercial nonmortgage		867			1,184
Consumer and other:
Loans on deposits		795			855
Home equity		10,326			9,217
Automobile		122			104
Unsecured		636			611
		330,240			315,441
Allowance for credit losses		(2,106	)		(1,634	)
	$	328,134		$	313,807

The amounts above include net deferred loan costs of $312,000 and $330,000 as of March 31, 2024 and June 30, 2023, respectively.

The allowance for credit losses is a valuation allowance that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected for the loans. Loan losses are charged off against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

Management estimates the allowance balance required using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience, derived from the Company’s data, provides the basis for estimation of expected credit losses, although management also compares the Company’s data with peer group data. Adjustments to historical loss information may be made for differences in: lending policy, procedures and practice; economic conditions; the nature and volume of the loan portfolio; volume delinquent and problem loans; the current and anticipated economic conditions in the primary lending area; and other external factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the pool evaluation. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the sale of the collateral, the expected credit losses are based on the fair value of the collateral at the reporting date, less any discounts and selling costs.

Management monitors loan performance on a monthly basis and performs a quarterly evaluation of the adequacy of the ACL. The Banks begin enhanced monitoring of all loans rated 5-Watch or worse and obtain a new appraisal or asset valuation for most loans placed on nonaccrual status. New appraisals are usually not obtained on loans with outstanding principal amounts of $50,000 or less. Management, at its discretion, may determine that additional adjustments to the appraisal or valuation are required. Valuation adjustments will be made as necessary based on factors, including, but not limited to: the economy, deferred maintenance, industry, type of collateral, age of the appraisal, etc., and the knowledge Management has about a particular situation. In addition, the cost to sell or liquidate the collateral is also estimated and deducted from the valuation in order to determine the net realizable value to the Banks. When determining the ACL, certain factors involved in the evaluation are inherently subjective and require material estimates that may be susceptible to significant change, including the amounts and timing of future cash flows. Management monitors the adequacy of the ACL on an ongoing basis and reports its adequacy quarterly to the Board of Directors. Management believes the ACL at March 31, 2024 is adequate.

Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments, when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a modification will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Banks.

The Banks categorize 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, and current economic trends, among other factors. Management utilizes a risk rating scale ranging from 1-Highest Pass to 9-Loss to evaluate loan quality. Consumer purpose loans are identified as either performing or nonperforming based on the payment status of the loans. Nonperforming consumer loans are loans that are nonaccrual or 90 days or more past due and still accruing.

Our portfolio segments include residential real estate, nonresidential real estate, farm, land, commercial and industrial, and consumer and other loans. Risk factors associated with our portfolio segments are as follows:

Residential Real Estate

Our primary lending activity is the origination of mortgage loans, which enable a borrower to purchase or refinance existing homes in the Banks’ respective market areas. We further classify our residential real estate loans as one- to four-family (owner-occupied vs nonowner-occupied), multi-family or construction. We believe that our first mortgage position on loans secured by residential real estate presents lower risk than our other loans, with the exception of loans secured by deposits.

We offer a mix of adjustable-rate and fixed-rate mortgage loans with terms up to 30 years for owner-occupied properties. For these properties a borrower may be able to borrow up to 97% of the value with private mortgage insurance. Alternatively, the borrower may be able to borrow up to 90% of the value through other programs offered by the bank.

We offer loans on one- to four-family rental properties at a maximum of 80% loan-to-value (“LTV”) ratio and we generally charge a slightly higher interest rate on such loans.

We also originate loans to individuals to finance the construction of residential dwellings for personal use or for use as rental property. We lend to builders for construction of speculative or custom residential properties for resale. Construction loans are generally less than one year in length, do not exceed 80% of the appraised value, and provide for the payment of interest only during the construction phase. Funds are disbursed as progress is made toward completion of the construction.

Multi-family Loans

We offer mortgage loans secured by residential multi-family (five or more units). Generally, these loans are originated for 25 years or less and do not exceed 80% of the appraised value. Loans secured by multi-family generally have larger balances and involve a greater degree of risk than one- to four-family residential mortgage loans. These loans depend on the borrower’s creditworthiness and the feasibility and cash flow potential of the project. Payments on loans secured by income properties often depend on successful operation and management of the properties. As a result, repayment on such loans may be subject to a greater extent to adverse conditions in the real estate market or economy than owner-occupied residential loans.

Nonresidential Loans

We offer mortgage loans secured by nonresidential real estate comprised generally of commercial office buildings, churches and properties used for other purposes. Generally, these loans are originated for 25 years or less and do not exceed 80% of the appraised value. As with multi-family loans, commercial real estate loans generally have larger balances and involve a greater degree of risk than one- to four-family residential mortgage loans and these loans depend on the borrower’s creditworthiness, as well as the feasibility and cash flow potential of the project. Payments on loans secured by nonresidential properties often depend on successful operation and management of the properties. As a result, repayment on such loans may be subject to a greater extent to adverse conditions in the real estate market or economy than owner-occupied residential loans.

Consumer lending

Our consumer loans include home equity lines of credit, loans secured by savings deposits, automobile loans, and unsecured loans. Home equity loans are generally second mortgage loans subordinate only to first mortgages also held by the bank and do not exceed 80% of the estimated value of the property. We do offer home equity loans up to 90% of the estimated value to qualified borrowers and these loans carry a premium interest rate. Loans secured by savings are originated up to 90% of the depositor’s savings account balance and bear interest at a rate higher than the rate paid on the deposit account. Because the deposit account must be pledged as collateral to secure the loan, the inherent risk of this type of loan is minimal. Loans secured by automobiles are made directly to consumers (there are no relationships with dealers) and are based on the value of the vehicle and the borrower’s creditworthiness. Vehicle loans present a higher level of risk because of the natural decline in the value of the property as well as its mobility. Unsecured loans are based entirely on the borrower’s creditworthiness and present the highest level of risk to the bank.

Impaired loans

The Banks choose the most appropriate method for accounting for impaired loans. For secured loans, which make up the vast majority of the loans in the Banks’ portfolio, this method involves determining the fair value of the collateral, reduced by estimated selling costs. Where appropriate, the Banks would account for impaired loans by determining the present value of expected future cash flows discounted at the loan’s effective interest rate.

A loan is considered impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Although most of our loans are secured by collateral, we rely heavily on the capacity of our borrowers to generate sufficient cash flow to service their debt. As a result, our loans do not become collateral-dependent until there is deterioration in the borrower’s cash flow and financial condition, which makes it necessary for us to look to the collateral for our sole source of repayment. Collateral-dependent loans which are more than ninety days delinquent are considered to constitute more than a minimum delay in repayment and are evaluated for impairment under the policy at that time.

We utilize updated independent appraisals to determine fair value for collateral-dependent loans, adjusted for estimated selling costs, in determining our specific reserve. In some situations, management does not secure an updated independent appraisal. These situations may involve small loan amounts or loans that, in management’s opinion, have an abnormally low loan-to-value ratio.

With respect to the Banks’ investment in troubled debt restructurings, multi-family and nonresidential loans, and the evaluation of impairment thereof, such loans are nonhomogenous and, as such, may be deemed to be collateral-dependent when they become more than 90 days delinquent. We obtain updated independent appraisals in these situations or when we suspect that the previous appraisal may no longer be reflective of the property’s current fair value. This process varies from loan to loan, borrower to borrower, and also varies based on the nature of the collateral.

The following table presents the activity in the ACL by portfolio segment for the nine months ended March 31, 2024, after restatement of beginning balance for adoption of ASC 326:

March 31, 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	$	58		$	(9	)	$	-	$	-		$	1,646
Multi-family		278		(145	)		133		(33	)		-			-		-			100
Construction		41		97			138		(33	)		-			-		(1	)		104
Land		1		14			15		7			-			-		-			22
Farm		4		2			6		(1	)		-			-		-			5
Nonresidential real estate		405		(221	)		184		(13	)		-			-		-			171
Commercial and industrial		23		(18	)		5		-			-			-		-			5
Consumer and other
Loans on deposits		1		(1	)		-		-			-			-		-			-
Home equity		23		28			51		2			-			-		(2	)		51
Automobile		-		1			1		(1	)		-			-		-			-
Unsecured		1		-			1		1			-			-		-			2
	$	1,634	$	497		$	2,131	$	(13	)	$	(9	)	$	-	$	(3	)	$	2,106

For the nine months ended March 31, 2024, the provision for (recovery of) credit losses totaled $(16,000) including $13,000 of recovery on credit losses on loans and $3,000 recovery on credit losses on unfunded commitments. At March 31, 2024, the allowance for credit losses on unfunded commitments totaled $57,000.

The following table presents the activity in the ALLL by portfolio segment for the nine months ended March 31, 2023:

(in thousands)	Beginning balance		Provision (credit) for loan losses			Loans charged off			Recoveries		Ending balance
Residential real estate:
One-to four-family	$	800	$	44		$	(22	)	$	13	$	835
Multi-family		231		96			–			–		327
Construction		4		29			–			–		33
Land		3		(2	)		–			–		1
Farm		5		–			–			–		5
Nonresidential real estate		461		(53	)		–			–		408
Commercial nonmortgage		2		–			–			–		2
Consumer and other:
Loans on deposits		1		–			–			–		1
Home equity		21		–			–			–		21
Automobile		–		–			–			–		–
Unsecured		1		(1	)		–			–		–
Totals	$	1,529	$	113		$	(22	)	$	13	$	1,633

The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2024:

(in thousands)	Beginning balance		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	$	1,587	$	59		$	–	$	–	$	-	$	1,646
Multi-family		130		(30	)		–		–		-		100
Construction		124		(22	)		–		–		2		104
Land		22		-			–		–		-		22
Farm		5		–			–		–		-		5
Nonresidential real estate		198		(27	)		–		–		-		171
Commercial nonmortgage		6		(1	)		–		–		-		5
Consumer and other:											-
Loans on deposits		–		–			–		–		-		–
Home equity		59		(8	)		–		–		-		51
Automobile		–		–			–		–		-		–
Unsecured		1		1			–		–		-		2
Totals	$	2,132	$	(28	)	$	–	$	–	$	2	$	2,106

The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2023:

(in thousands)	Beginning balance		Provision (credit) for loan losses			Loans charged off			Recoveries		Ending balance
Residential real estate:
One- to four-family	$	778	$	79		$	(22	)	$	–	$	835
Multi-family		363		(36	)		–			–		327
Construction		26		7			–			–		33
Land		1		–			–			–		1
Farm		5		–			–			–		5
Nonresidential real estate		457		(49	)		–			–		408
Commercial nonmortgage		2		–			–			–		2
Consumer and other:
Loans on deposits		1		–			–			–		1
Home equity		21		–			–			–		21
Automobile		–		–			–			–		–
Unsecured		1		(1	)		–			–		–
Totals	$	1,655	$	–		$	(22	)	$	–	$	1,633

The following table presents the amortized cost basis of collateral-dependent loans by portfolio class as of March 31, 2024. The recorded investment in loans excludes accrued interest receivable due to immateriality.

March 31, 2024:

(in thousands)	Amortized Cost Basis		Ending allowance on collateral- dependent loans
Loans individually evaluated for impairment:
Residential real estate:
One- to four-family	$	2,882	$	–
Nonresidential real estate		1,950		–
Commercial and industrial		–		–
	$	4,832		–

Real estate stands as collateral for loans individually evaluated for impairment.

The following tables present the balance in the ALLL and the recorded investment in loans by portfolio class and based on impairment method as of March 31, 2024.

March 31, 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	$	2,882	$	178	$	3,060	$	-
Nonresidential real estate		1,950		-		1,950		-
		4,832		178		5,010		-
Loans collectively evaluated for impairment:
Residential real estate
One- to four-family					$	251,729	$	1,646
Multi-family						15,755		100
Construction						14,239		104
Land						1,069		22
Farm						1,313		5
Nonresidential real estate						28,379		171
Commercial and industrial						867		5
Consumer and other
Loans on deposits						795		-
Home equity						10,326		51
Automobile						122		-
Unsecured						636		2
						325,230		2,106
					$	330,240	$	2,106

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

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, 2023.

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 collectively 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 interest income on loans individually evaluated for impairment by class of loans for the nine months ended March 31:

(in thousands)	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
	2024						2023
With no related allowance recorded:
One- to four-family	$	3,058	$	55	$	55	$	3,227	$	147	$	147
Multi-family		--		–		–		561		15		15
Farm		--		–		–		270		–		–
Nonresidential real estate		1,882		51		51		1,055		41		41
Consumer		89		–		–		46		6		6
Purchased credit-impaired loans		191		7		7		383		17		17
		5,220		113		113		5,542		226		226
With an allowance recorded:
One- to four-family		–		–		–		–		–		–
	$	5,220	$	113	$	113	$	5,542	$	226	$	226

The following table presents interest income on loans individually evaluated for impairment by class of loans for the three months ended March 31:

(in thousands)	Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized		Average Recorded Investment		Interest Income Recognized		Cash Basis Income Recognized
	2024						2023
With no related allowance recorded:
Residential real estate:
One- to four-family	$	3,073	$	11	$	11	$	3,240	$	66	$	66
Multi-family		–		–		–		555		5		5
Farm		–		–		–		265		–		–
Nonresidential real estate		1,965		2		2		1,047		12		12
Consumer		–		–		–		–		–		–
Purchased credit-impaired loans		182		6		6		371		6		6
		5,220		19		19		5,478		89		89
With an allowance recorded:
One- to four-family		–		–		–		–		–		–
	$	5,220	$	19	$	19	$	5,478	$	89	$	89

The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2024 and June 30, 2023:

	March 31, 2024				June 30, 2023
(in thousands)	Nonaccrual		Loans Past Due Over 90 Days Still Accruing		Nonaccrual		Loans Past Due Over 90 Days Still Accruing
Residential real estate:
One- to four-family residential real estate	$	3,149	$	373	$	3,029	$	365
Nonresidential real estate and land		1,670		–		1,717		28
Consumer		–		35		267		0
	$	4,819	$	408	$	5,013	$	393

One- to four-family loans in process of foreclosure totaled $1.2 million and $766,000 at March 31, 2024 and June 30, 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 $1.4 million of loans classified as TDRs.

During the nine months ended March 31, 2024 there were no loans modified to borrowers experiencing financial difficulty.

The following table presents the aging of the principal balance outstanding in past due loans as of March 31, 2024, by class of loans:

(in thousands)	30-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
Residential real estate:
One-to four-family	$	4,264	$	1,684	$	5,948	$	248,841	$	254,789
Multi-family		–		–		–		15,755		15,755
Construction		231		–		231		14,008		14,239
Land		–		–		–		1,069		1,069
Farm		–		–		–		1,313		1,313
Nonresidential real estate		809		–		809		29,520		30,329
Commercial non-mortgage		–		–		–		867		867
Consumer and other:
Loans on deposits		–		–		–		795		795
Home equity		153		35		188		10,138		10,326
Automobile		–		–		–		122		122
Unsecured		--		–		–		636		636
Total	$	5,457	$	1,719	$	7,176	$	323,064	$	330,240

The following tables present the aging of the principal balance outstanding in past due loans as of June 30, 2023, by class of loans:

June 30, 2023:

(in thousands)	30-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
Residential real estate
One- to four-family	$	3,415	$	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
	$	4,262	$	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 March 31, 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	$	24,346	$	50,368	$	48,136	$	43,911	$	27,424	$	55,244	$	-	$	249,429
Special mention		-		-		-		-		-		138		-		138
Substandard		-		-		--		82		17		5,123		-		5,222
Doubtful		-		-		-		-		-		-		-		-
Total	$	24,346	$	50,368	$	48,136	$	43,933	$	27,411	$	60,505	$	-	$	254,789

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	9	$	-	$	9

Multi-family
Risk Rating:
Pass	$	200	$	-	$	6,132	$	5,948	$	1,248	$	2,227	$	-	$	15,755
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	200	$	-	$	6,132	$	5,948	$	1,248	$	2,227	$	-	$	15,755

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Risk Rating:
Pass	$	5,660	$	8,483	$	23	$	-	$	-	$	73	$	-	$	14,239
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	5,660	$	8,483	$	23	$	-	$	-	$	73	$	-	$	14,239

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Land
Risk Rating:
Pass	$	508	$	283	$	215	$	-	$	-	$	63	$	-	$	1,069
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	508	$	283	$	215	$	-	$	-	$	63	$	-	$	1,069

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Farm
Risk Rating:
Pass	$	212	$	-	$	248	$	-	$	26	$	827	$	-	$	1,313
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	212	$	-	$	248	$	-	$	26	$	827	$	-	$	1,313

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Nonresidential real estate
Risk Rating:
Pass	$	2,564	$	2,346	$	3,165	$	3,437	$	5,795	$	10,400	$	-	$	27,707
Special mention		-		-		-		-		-		672		-		672
Substandard		-		1,017		-		-		-		933		-		1,950
Doubtful		-		-		-		-		-		-		-		-
Total	$	2,564	$	3,363	$	3,165	$	3,437	$	5,795	$	12,005	$	-	$	30,329

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial and industrial
Risk Rating:
Pass	$	328	$	-	$	398	$	4	$	-	$	137	$	-	$	867
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	328	$	-	$	398	$	4	$	-	$	137	$	-	$	867

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Share Loans
Risk Rating:
Pass	$	94	$	95	$	-	$	17	$	177	$	412	$	-	$	795
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	94	$	95	$	-	$	17	$	177	$	412	$	-	$	795

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Home Equity
Risk Rating:
Pass	$	-	$	-	$	-	$	-	$	-	$	-	$	9,904	$	9,904
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		422		422
Doubtful		-		-		-		-		-		-		-		-
Total	$	-	$	-	$	-	$	-	$	-	$	-	$	10,326	$	10,326

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Auto
Risk Rating:
Pass	$	69	$	10	$	37	$	3	$	2	$	1	$	-	$	122
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	69	$	10	$	37	$	3	$	2	$	1	$	-	$	122

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Unsecured
Risk Rating:
Pass	$	282	$	120	$	32	$	174	$	23	$	5	$	-	$	636
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total	$	282	$	120	$	32	$	174	$	23	$	5	$	-	$	636

Current period gross charge offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

At March 31, 2024, the risk category of loans by class of loans was as follows:

(in thousands)	Pass		Special Mention		Substandard		Doubtful
Residential real estate:
One- to four-family	$	249,429	$	138	$	5,222	$	-
Multi-family		15,755		-		-		-
Construction		14,239		-		-		-
Land		1,069		-		-		-
Farm		1,313		-		-		-
Nonresidential real estate		27,707		672		1,950		-
Commercial nonmortgage		867		-		-		-
Consumer:
Loans on deposits		795		-		-		-
Home equity		9,904		-		422		-
Automobile		122		-		-		-
Unsecured		636		-		-		-
	$	321,836	$	810	$	7,594	$	-

At June 30, 2023, the risk category of loans by class of loans was as follows:

(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		1,013		-
Commercial and industrial		1,184		-		-		-
Consumer and other
Loans on deposits		855		-		-		-
Home equity		8,879		-		338		-
Automobile		104		-		-		-
Unsecured		611		-		-		-
	$	307,391	$	854	$	6,492	$	-

Purchased Credit Impaired Loans:

The Company purchased loans during fiscal year 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 $88,000 and $88,000 at March 31, 2024 and June 30, 2023, respectively, is as follows:

(in thousands)	March 31, 2024		June 30, 2023
One- to four-family residential real estate	$	178	$	196

Accretable yield, or income expected to be collected, is as follows:

(in thousands)	Nine months ended March 31, 2024			Twelve months ended June 30, 2023
Balance at beginning of period	$	294		$	339
Accretion of income		(30	)		(45	)
Balance at end of period	$	264		$	294

For those purchased loans disclosed above, the Company made no increase in allowance for loan losses for the year ended June 30, 2023, nor for the nine-month period ended March 31, 2024. Neither were any allowance for loan losses reversed during those periods.