XML 34 R23.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Loans Receivable (Tables)
 9 Months Ended
Mar. 31, 2024
Loans Receivable [Abstract]  
Schedule of Loan Portfolio 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 
Schedule of ACL by Portfolio Segment 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:
(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 
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 

  
Schedule of Amortized Cost Basis of Collateral-Dependent Loans 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.
(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    
–
 
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.
(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.
(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.

 
Schedule of Impairment By Class of Loans 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 

  
Schedule of Recorded Investment in Nonaccrual and Loans 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 
Schedule of Principal Balance Outstanding in Past Due Loans 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:
(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 
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   $
-
 
Schedule of Analysis Performed, the Risk Category of Loans by Class of Loans 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  $-   $-   $-   $-   $-   $-   $-   $- 

  
Schedule of Purchased Loans 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 
           
Schedule of Accretable Yield, or Income Expected to be Collected 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