XML 31 R13.htm IDEA: XBRL DOCUMENT v3.25.2
Loans
 12 Months Ended
Jun. 30, 2025
Loans [Abstract]  
LOANS

NOTE C - LOANS

 

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

 

(in thousands)  2025   2024 
Residential real estate        
One- to four-family  $251,338   $256,216 
Multi-family   15,505    15,815 
Construction   9,314    13,815 
Land   1,508    964 
Farm   3,023    1,169 
Nonresidential real estate   31,698    34,308 
Commercial and industrial   691    700 
Consumer and other          
Loans on deposits   813    819 
Home equity   14,643    10,644 
Automobile   134    117 
Unsecured   751    585 
    329,418    335,152 
Allowance for credit losses   (2,170)   (2,127)
   $327,248   $333,025 

The amounts above include net deferred loan fees of $149,000 and $288,000 as of June 30, 2025 and 2024.

 

The following tables present the amortized cost basis of collateral-dependent loans by portfolio class as of June 30, 2025 and June 30, 2024. The recorded investment in loans excludes accrued interest receivable due to immateriality.

 

June 30, 2025

 

(in thousands)  Amortized Cost
Basis		   Ending
allowance on
collateral-
dependent
loans		 
Loans individually evaluated for impairment:        
Residential real estate:        
One- to four-family  $1,856   $
         
 
Nonresidential real estate   927    
–
 
   $2,783    
–
 

 

June 30, 2024

 

(in thousands)  Amortized Cost
Basis		   Ending
allowance on
collateral-
dependent
loans		 
Loans individually evaluated for impairment:        
Residential real estate:        
One- to four-family  $2,674   $
       –
 
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, 2025 and 2024. The company reported $136,000 and $175,000 in loans acquired with deteriorated credit quality at June 30, 2025 and 2024, respectively.

 

June 30, 2025:

 

(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  $1,720   $136   $1,856   $
-
 
Nonresidential real estate   927    
-
    927    
-
 
    2,647    136    2,783    
-
 
Loans collectivelly evaluated for impairment:                    
Residential real estate                    
One- to four-family            $249,482   $1,690 
Multi-family             15,505    86 
Construction             9,314    70 
Land             1,508    24 
Farm             3,023    16 
Nonresidential real estate             30,771    230 
Commercial and industrial             691    7 
Consumer and other                    
Loans on deposits             813    
-
 
Home equity             14,643    36 
Automobile             134    1 
Unsecured             751    10 
              326,635    2,170 
             $329,418   $2,170 

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    - 
    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 

 

* 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, 2025 and 2024: 

 

(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, 2025:                    
                     
With no related allowance recorded:                    
Residential real estate                    
One- to four-family  $1,856   $
        -
   $1,873   $91   $91 
Nonresidential real estate   927    
-
    1,181    38    38 
   $2,783   $
-
   $3,054   $129   $129 
                          
June 30, 2024:                         
                          
With no related allowance recorded:                         
Residential real estate                         
One- to four-family  $2,849   $
-
   $3,146   $104   $104 
Nonresidential real estate   1,925    
-
    1,893    54    54 
Consumer and other                         
Home equity   
-
    
-
    89    
-
    
-
 
   $4,774   $
-
   $5,128   $158   $158 

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, 2025 and 2024. The tables include loans acquired with deteriorated credit quality. At June 30, 2025, the table below includes approximately $134,000 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, 2024, approximately $175,000 of loans on nonaccrual and no loans past due over 89 days and still accruing represent such loans. At both June 30, 2025 and 2024, there is $0 in allowance for credit loss for nonaccrual loans as the loans have been charged off to reflect the fair value of the underlying collateral.

  

   June 30, 2025   June 30, 2024 
(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  $1,924   $592   $2,678   $221 
Construction   291    
-
    
-
    
-
 
Nonresidential real estate   927    
-
    969    
-
 
Consumer and other                    
Unsecured   131    
-
    
-
    28 
   $3,273   $592   $3,647   $249 

 

One- to four-family loans in process of foreclosure totaled $213,000 and $926,000 at June 30, 2025 and 2024, 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.”

 

There were no loans modified to borrowers experiencing financial difficulty during the year ended June 30, 2025 or June 30, 2024.

The following tables present the aging of the principal balance outstanding past due loans as of June 30, 2025 and 2024, by class of loans. The tables include loans acquired with deteriorated credit quality. At June 30, 2025, the table below includes no loans past due that were acquired with deteriorated credit quality, while 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 89 days of such loans.

 

June 30, 2025: 

 

(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  $3,731   $687   $1,000   $5,418   $245,920   $251,338 
Multi-family   
-
    246    
-
    246    15,259    15,505 
Construction   127    
-
    291    418    8,896    9,314 
Land   
-
    
-
    
-
    
-
    1,508    1,508 
Farm   
-
    
-
    
-
    
-
    3,023    3,023 
Nonresidential real estate   1,704    25    
-
    1,729    29,969    31,698 
Commercial and industrial   
-
    
-
    
-
    
-
    691    691 
Consumer and other                              
Loans on deposits   
-
    
-
    
-
    
-
    813    813 
Home equity   
-
    
-
    
-
    
-
    14,643    14,643 
Automobile   
-
    
-
    
-
    
-
    134    134 
Unsecured   23    
 
    
-
    23    728    751 
   $5,585   $958   $1,291   $7,834   $321,584   $329,418 

 

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 

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, 2025, 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 June 30, 2025  2025   2024   2023   2022   2021   Prior   Cost Basis   Total 
Residential real estate:                                
One- to four-family                                
Risk Rating:                                
Pass  $30,263   $30,777   $46,914   $40,661   $38,891   $59,027   $-   $246,533 
Special mention   -    -    -    -    -    96    -    96 
Substandard   345    194    -    --    350    3,820    -    4,709 
Doubtful   -    -    -    -    -    -    -    - 
Total  $30,608   $30,971   $46,914   $40,661   $39,241   $62,943   $-   $251,338 
                                         
Current period gross charge offs  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Multi-family                                        
Risk Rating:                                        
Pass  $1,185   $395   $5,840   $5,226   $1,202   $1,657   $-   $15,505 
Special mention   -    -    -    -    -    -    -    - 
Substandard   -    -    -    -    -    -    -    - 
Doubtful   -    -    -    -    -    -    -    - 
Total  $1,185   $395   $5,840   $5,226   $1,202   $1,657   $-   $15,505 
                                         
Current period gross charge offs  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Construction                                        
Risk Rating:                                        
Pass  $5,241   $3,392   $282   $-   $108   $-   $-   $9,023 
Special mention   -    -    -    -    -    -    -    - 
Substandard   -    291    -    -    -    -    -    291 
Doubtful   -    -    -    -    -    -    -    - 
Total  $5,241   $3,683   $282   $-   $108   $-   $-   $9,314 
                                         
Current period gross charge offs  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Land                                        
Risk Rating:                                        
Pass  $355   $581   $288   $207   $49   $-   $-   $1,480 
Special mention   -    -    -    -    -    -    -    - 
Substandard   28    -    -    -    -    -    -    28 
Doubtful   -    -    -    -    -    -    -    - 
Total  $383   $581   $288   $207   $49   $-   $-   $1,508 
                                         
Current period gross charge offs  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Farm                                        
Risk Rating:                                        
Pass  $2,510   $-   $-   $212   $-   $301   $-   $3,023 
Special mention   -    -    -    -    -    -    -    - 
Substandard   -    -    -    -    -    -    -    - 
Doubtful   -    -    -    -    -    -    -    - 
Total  $2,510   $-   $-   $212   $-   $301   $-   $3,023 
                                         
Current period gross charge offs  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Nonresidential real estate                                        
Risk Rating:                                        
Pass  $2,662   $7,245   $1,169   $2,360   $2,822   $13,937   $-   $30,195 
Special mention   25    -    -    -    -    551    -    576 
Substandard   -    -    722    -    -    205    -    927 
Doubtful   -    -    -    -    -    -    -    - 
Total  $2,687   $7,245   $1,891   $2,360   $2,822   $14,693   $-   $31,698 
                                         
Current period gross charge offs  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Commercial and industrial                                        
Risk Rating:                                        
Pass  $545   $130   $16   $-   $-   $-   $-   $691 
Special mention   -    -    -    -    -    -    -    - 
Substandard   -    -    -    -    -    -    -    - 
Doubtful   -    -    -    -    -    -    -    - 
Total  $545   $130   $16   $-   $-   $-   $-   $691 
                                         
Current period gross charge offs  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Share Loans                                        
Risk Rating:                                        
Pass  $138   $57   $81   $-   $6   $531   $-   $813 
Special mention   -    -    -    -    -    -    -    - 
Substandard   -    -    -    -    -    -    -    - 
Doubtful   -    -    -    -    -    -    -    - 
Total  $138   $57   $81   $-   $6   $531   $-   $813 
                                         
Current period gross charge offs  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Home Equity                                        
Risk Rating:                                        
Pass  $-   $-   $-   $-   $-   $-   $14,643   $14,643 
Special mention   -    -    -    -    -    -    -    - 
Substandard   -    -    -    -    -    -    -    - 
Doubtful   -    -    -    -    -    -    -    - 
Total  $-   $-   $-   $-   $-   $-   $14,643   $14,643 
                                         
Current period gross charge offs  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Auto                                        
Risk Rating:                                        
Pass  $69   $40   $2   $18   $1   $4   $-   $134 
Special mention   -    -    -    -    -    -    -    - 
Substandard   -    -    -    -    -    -    -    - 
Doubtful   -    -    -    -    -    -    -    - 
Total  $69   $40   $2   $18   $1   $4   $-   $134 
                                         
Current period gross charge offs  $-   $-   $-   $-   $-   $-   $-   $- 
                                         
Unsecured                                        
Risk Rating:                                        
Pass  $340   $52   $17   $21   $161   $29   $-   $620 
Special mention   -    -    -    -    -    -    -    - 
Substandard   131    -    -    -    -    -    -    131 
Doubtful   -    -    -    -    -    -    -    - 
Total  $471   $52   $17   $21   $161   $29   $-   $751 
                                         
Current period gross charge offs  $-   $-   $-   $-   $-   $-   $-   $- 

As of June 30, 2025, and 2024, and based on the most recent analysis performed, the risk category of loans by class of loans was as follows:

 

June 30, 2025:

 

(in thousands)  Pass   Special
Mention		   Substandard   Doubtful 
                 
Residential real estate                
One- to four-family  $246,533   $96   $4,709   $
       -
 
Multi-family   15,505    
-
    
-
    
-
 
Construction   9,023    
-
    291    
-
 
Land   1,480    
-
    28    
-
 
Farm   3,023    
-
    
-
    
-
 
Nonresidential real estate   30,195    576    927    
-
 
Commercial and industrial   691    
-
    
-
    
-
 
Consumer and other                    
Loans on deposits   813    
-
    
-
    
-
 
Home equity   14,643    
-
    
-
    
-
 
Automobile   134    
-
    
-
    
-
 
Unsecured   620    
-
    131    
-
 
   $322,660   $672   $6,086   $
-
 

 

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   $
-
 

The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended June 30, 2025 and 2024:

 

June 30, 2025:

 

(in thousands)  Beginning Balance June 30, 2024   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  $1,661   $29   $
            -
   $
         -
   $
         -
   $1,690 
Multi-family   100    (14)   
-
    
-
    
-
    86 
Construction   122    (49)   
-
    
-
    (3)   70 
Land   28    (4)   
-
    
-
    
-
    24 
Farm   4    12    
-
    
-
    
-
    16 
Nonresidential real estate   192    38    
-
    
-
    
-
    230 
Commercial and industrial   3    4    
-
    
-
    
-
    7 
Consumer and other                              
Loans on deposits   
-
    
-
    
-
    
-
    
-
    
-
 
Home equity   14    15    
-
    7    
-
    36 
Automobile   
-
    1    
-
    
-
    
-
    1 
Unsecured   3    7    
-
    
-
    
-
    10 
   $2,127   $39   $
-
   $7   $(3)  $2,170 

 

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 

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 $25,000, at June 30, 2025 and 2024, respectively, was as follows:

 

(in thousands)  2025   2024 
Residential real estate        
One- to four-family  $134   $175 

 

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)  2025   2024 
Balance at beginning of year  $260   $294 
Accretion of income   (33)   (34)
Balance at end of year  $227   $260 

 

For those purchased loans disclosed above, the Company made no increase in allowance for loan losses for the years ended June 30, 2025 or 2024, nor were any allowance for loan losses reversed during those years.