Loans Held for Investment (Tables)

3 Months Ended

Sep. 30, 2020

Loans Held for Investment

Schedule of loans held for investment

	September 30,		June 30,
(In Thousands)	2020		2020
Mortgage loans:
Single-family	$	288,790	$	298,810
Multi-family		482,900		491,903
Commercial real estate		105,207		105,235
Construction (1)		8,787		7,801
Other		142		143
Commercial business loans (2)		923		480
Consumer loans (3)		100		94
Total loans held for investment, gross		886,849		904,466
Advance payments of escrows		39		68
Deferred loan costs, net		6,555		6,527
Allowance for loan losses		(8,490)		(8,265)
Total loans held for investment, net	$	884,953	$	902,796

⁽¹⁾ Net of $3.4 million and $4.0 million of undisbursed loan funds as of September 30, 2020 and June 30, 2020, respectively

⁽²⁾ Net of $485 thousand and $935 thousand of undisbursed lines of credit as of September 30, 2020 and June 30, 2020, respectively.

⁽³⁾ Net of $443 thousand and $448 thousand of undisbursed lines of credit as of September 30, 2020 and June 30, 2020, respectively.

Schedule of loans held for investment, contractual repricing

	Adjustable Rate
			After		After		After
			One Year		3 Years		5 Years
	Within One		Through 3		Through 5		Through 10
(In Thousands)	Year		Years		Years		Years		Fixed Rate		Total
Mortgage loans:
Single-family	$	75,377	$	56,552	$	74,327	$	74,546	$	7,988	$	288,790
Multi-family		158,412		155,709		154,045		14,586		148		482,900
Commercial real estate		48,576		28,123		28,195		—		313		105,207
Construction		6,626		—		—		—		2,161		8,787
Other		—		—		—		—		142		142
Commercial business loans		535		—		—		—		388		923
Consumer loans		100		—		—		—		—		100
Total loans held for investment, gross	$	289,626	$	240,384	$	256,567	$	89,132	$	11,140	$	886,849

Schedule of gross loans held for investment by loan types and risk category

	September 30, 2020
	Single-		Multi-		Commercial				Other		Commercial
(In Thousands)	family		family		Real Estate		Construction		Mortgage		Business		Consumer		Total
Pass	$	281,593	$	479,145	$	105,207	$	8,787	$	142	$	892	$	100	$	875,866
Special Mention		2,175		3,755		—		—		—		—		—		5,930
Substandard		5,022		—		—		—		—		31		—		5,053
Total loans held for investment, gross	$	288,790	$	482,900	$	105,207	$	8,787	$	142	$	923	$	100	$	886,849

	June 30, 2020
	Single-		Multi-		Commercial				Other		Commercial
(In Thousands)	family		family		Real Estate		Construction		Mortgage		Business		Consumer		Total
Pass	$	289,942	$	488,126	$	105,235	$	6,098	$	143	$	445	$	94	$	890,083
Special Mention		3,120		3,777		—		1,703		—		—		—		8,600
Substandard		5,748		—		—		—		—		35		—		5,783
Total loans held for investment, gross	$	298,810	$	491,903	$	105,235	$	7,801	$	143	$	480	$	94	$	904,466

Schedule of allowance for loan losses

The following table is provided to disclose additional details for the periods indicated on the Corporation’s allowance for loan losses:

	For the Quarter Ended
	September 30,
(Dollars in Thousands)	2020			2019
Allowance at beginning of period	$	8,265		$	7,076
Provision (recovery) for loan losses		220			(181)
Recoveries:
Mortgage loans:
Single-family		5			36
Total recoveries		5			36
Charge-offs:
Mortgage loans:
Single-family		—			(1)
Consumer loans		—			(1)
Total charge-offs		—			(2)
Net recoveries (charge-offs)		5			34
Balance at end of period	$	8,490		$	6,929
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period		0.95	%		0.74	%
Net (recoveries) charge-offs  as a percentage of average loans receivable, net, during the period (annualized)		(0.00)	%		(0.02)	%

Schedule of past due status of gross loans held for investment, net of fair value adjustments

	September 30, 2020
			30‑89 Days				Total Loans Held for
(In Thousands)	Current		Past Due		Non-Accrual (1)		Investment, Gross
Mortgage loans:
Single-family	$	283,862	$	—	$	4,928	$	288,790
Multi-family		482,900		—		—		482,900
Commercial real estate		105,207		—		—		105,207
Construction		8,787		—		—		8,787
Other		142		—		—		142
Commercial business loans		892		—		31		923
Consumer loans		98		2		—		100
Total loans held for investment, gross	$	881,888	$	2	$	4,959	$	886,849

⁽¹⁾ All loans 90 days or greater past due are placed on non-accrual status.

	June 30, 2020
			30‑89 Days				Total Loans Held for
(In Thousands)	Current		Past Due		Non-Accrual (1)		Investment, Gross
Mortgage loans:
Single-family	$	293,326	$	219	$	5,265	$	298,810
Multi-family		491,903		—		—		491,903
Commercial real estate		105,235		—		—		105,235
Construction		7,801		—		—		7,801
Other		143		—		—		143
Commercial business loans		445		—		35		480
Consumer loans		94		—		—		94
Total loans held for investment, gross	$	898,947	$	219	$	5,300	$	904,466

⁽¹⁾ All loans 90 days or greater past due are placed on non-accrual status.

Schedule of allowance for loan losses and recorded investment

	Quarter Ended September 30, 2020
	Single-			Multi-			Commercial									Commercial
(In Thousands)	family			family			Real Estate			Construction			Other			Business			Consumer			Total
Allowance for loan losses:
Allowance at beginning of period	$	2,622		$	4,329		$	1,110		$	171		$	3		$	24		$	6		$	8,265
Provision (recovery) for loan losses		44			161			52			(55)			—			18			—			220
Recoveries		5			—			—			—			—			—			—			5
Charge-offs		—			—			—			—			—			—			—			—
Allowance for loan losses, end of period	$	2,671		$	4,490		$	1,162		$	116		$	3		$	42		$	6		$	8,490
Allowance for loan losses:
Individually evaluated for impairment	$	80		$	—		$	—		$	—		$	—		$	4		$	—		$	84
Collectively evaluated for impairment		2,591			4,490			1,162			116			3			38			6			8,406
Allowance for loan losses, end of period	$	2,671		$	4,490		$	1,162		$	116		$	3		$	42		$	6		$	8,490
Loans held for investment:
Individually evaluated for impairment	$	2,957		$	—		$	—		$	—		$	—		$	31		$	—		$	2,988
Collectively evaluated for impairment		285,833			482,900			105,207			8,787			142			892			100			883,861
Total loans held for investment, gross	$	288,790		$	482,900		$	105,207		$	8,787		$	142		$	923		$	100		$	886,849
Allowance for loan losses as a percentage of gross loans held for investment		0.92	%		0.93	%		1.10	%		1.32	%		2.11	%		4.55	%		6.00	%		0.95	%

	Quarter Ended September 30, 2019
	Single-			Multi-			Commercial									Commercial
(In Thousands)	family			family			Real Estate			Construction			Other			Business			Consumer			Total
Allowance for loan losses:
Allowance at beginning of period	$	2,709		$	3,219		$	1,050		$	61		$	3		$	26		$	8		$	7,076
Provision (recovery) for loan losses		(510)			288			35			13			(3)			(6)			2			(181)
Recoveries		36			—			—			—			—			—			—			36
Charge-offs		(1)			—			—			—			—			—			(1)			(2)
Allowance for loan losses, end of period	$	2,234		$	3,507		$	1,085		$	74		$	—		$	20		$	9		$	6,929
Allowance for loan losses:
Individually evaluated for impairment	$	47		$	—		$	—		$	—		$	—		$	7		$	—		$	54
Collectively evaluated for impairment		2,187			3,507			1,085			74			—			13			9			6,875
Allowance for loan losses, end of period	$	2,234		$	3,507		$	1,085		$	74		$	—		$	20		$	9		$	6,929
Loans held for investment:
Individually evaluated for impairment	$	3,766		$	—		$	—		$	1,139		$	—		$	45		$	—		$	4,950
Collectively evaluated for impairment		324,566			479,597			110,652			4,773			—			323			144			920,055
Total loans held for investment, gross	$	328,332		$	479,597		$	110,652		$	5,912		$	—		$	368		$	144		$	925,005
Allowance for loan losses as a percentage of gross loans held for investment		0.68	%		0.73	%		0.98	%		1.25	%		—	%		5.43	%		6.25	%		0.74	%

Schedule of recorded investment in non-performing loans

	At September 30, 2020
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance (1)		Investment
Mortgage loans:
Single-family:
With a related allowance	$	3,352	$	—	$	3,352	$	(430)	$	2,922
Without a related allowance (2)		2,045		(462)		1,583		—		1,583
Total single-family		5,397		(462)		4,935		(430)		4,505
Commercial business loans:
With a related allowance		31		—		31		(4)		27
Total commercial business loans		31		—		31		(4)		27
Total non-performing loans	$	5,428	$	(462)	$	4,966	$	(434)	$	4,532

⁽¹⁾ Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan, and fair value credit adjustments.

⁽²⁾ There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance.

	At June 30, 2020
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance (1)		Investment
Mortgage loans:
Single-family:
With a related allowance	$	3,289	$	—	$	3,289	$	(438)	$	2,851
Without a related allowance (2)		2,509		(467)		2,042		—		2,042
Total single-family		5,798		(467)		5,331		(438)		4,893
Commercial business loans:
With a related allowance		35		—		35		(4)		31
Total commercial business loans		35		—		35		(4)		31
Total non-performing loans	$	5,833	$	(467)	$	5,366	$	(442)	$	4,924

⁽¹⁾ Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan, and fair value credit adjustments.

⁽²⁾ There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance.

Schedule of Nonperforming Loans on Interest Income

The following tables present the average recorded investment in non-performing loans and the related interest income recognized for the quarter ended September 30, 2020 and 2019:

	Quarter Ended September 30,
	2020				2019
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(In Thousands)	Investment		Recognized		Investment		Recognized
Without related allowances:
Mortgage loans:
Single-family	$	1,883	$	—	$	3,086	$	116
Construction		—		—		1,084		—
		1,883		—		4,170		116
With related allowances:
Mortgage loans:
Single-family		3,510		40		1,198		12
Commercial business loans		32		1		46		1
		3,542		41		1,244		13
Total	$	5,425	$	41	$	5,414	$	129

Schedule of troubled debt restructurings by nonaccrual versus accrual status

	At		At
(In Thousands)	September 30, 2020		June 30, 2020
Restructured loans on non-accrual status:
Mortgage loans:
Single-family	$	2,421	$	2,612
Commercial business loans		27		31
Total		2,448		2,643
Total restructured loans	$	2,448	$	2,643

Schedule of recorded investment in restructured loans

	At September 30, 2020
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance (1)		Investment
Mortgage loans:
Single-family:
With a related allowance	$	1,640	$	—	$	1,640	$	(86)	$	1,554
Without a related allowance (2)		1,232		(365)		867		—		867
Total single-family		2,872		(365)		2,507		(86)		2,421
Commercial business loans:
With a related allowance		31		—		31		(4)		27
Total commercial business loans		31		—		31		(4)		27
Total restructured loans	$	2,903	$	(365)	$	2,538	$	(90)	$	2,448

⁽¹⁾ Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan.

⁽²⁾ There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance.

	At June 30, 2020
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance (1)		Investment
Mortgage loans:
Single-family:
With a related allowance	$	1,650	$	—	$	1,650	$	(108)	$	1,542
Without a related allowance (2)		1,435		(365)		1,070		—		1,070
Total single-family		3,085		(365)		2,720		(108)		2,612
Commercial business loans:
With a related allowance		35		—		35		(4)		31
Total commercial business loans		35		—		35		(4)		31
Total restructured loans	$	3,120	$	(365)	$	2,755	$	(112)	$	2,643

⁽¹⁾ Consists of collectively and individually evaluated allowances, specifically assigned to the individual loan.

⁽²⁾ There was no related allowance for loan losses because the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance.

Schedule of loan forbearance related to COVID-19 hardship requests

	Forbearance Granted			Forbearance Completed			Forbearance Remaining
	Number of			Number of			Number of
(Dollars In Thousands)	Loans	Amount		Loans	Amount		Loans	Amount
Single-family loans	57	$	23,036	13	$	5,872	44	$	17,164
Multi-family loans	4		2,043	3		1,588	1		455
Commercial real estate loans	2		1,069	2		1,069	—		—
Total loan forbearance	63	$	26,148	18	$	8,529	45	$	17,619

As of September 30, 2020, certain characteristics of loans in forbearance are described below:

									Weighted		Weighted Avg.
				% of				Weighted	Avg. Debt		Forbearance
	Number			Total		Weighted		Avg.	Coverage		Period
(Dollars In Thousands)	of Loans		Amount	Loans		Avg. LTV(1)		FICO(2)	Ratio(3)		Granted(4)
Single-family loans	44	$	17,164	1.94	%	62	%	737	N/A		6.0
Multi-family loans	1		455	0.05	%	60	%	687	1.32	x	3.0
Total loans in forbearance	45	$	17,619	1.99	%	62	%	733	1.32	x	5.9

(1)Current loan balance in comparison to the original appraised value.

(2)At time of loan origination, borrowers and/or guarantors.

(3)At time of loan origination.

(4)In months.