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Loans Held for Investment (Tables)

12 Months Ended

Jun. 30, 2021

Loans held for investment consisted of the following at June 30, 2021 and 2020:


(In Thousands)	June 30, 2021		June 30, 2020
Mortgage loans:
Single-family	$	268,272	$	298,810
Multi-family		484,408		491,903
Commercial real estate		95,279		105,235
Construction		3,040		7,801
Other		139		143
Commercial business loans		849		480
Consumer loans		95		94
Total loans held for investment, gross		852,082		904,466

Advance payments of escrows		157		68
Deferred loan costs, net		6,308		6,527
Allowance for loan losses		(7,587)		(8,265)
Total loans held for investment, net	$	850,960	$	902,796

Schedule of loans held for investment, contractual repricing


	Adjustable Rate
			After		After		After
		Within	One Year		3 Years		5 Years
(In Thousands)	One Year		Through 3 Years		Through 5 Years		Through 10 Years		Fixed Rate		Total
Mortgage loans:
Single-family	$	61,331	$	41,705	$	42,063	$	90,951	$	32,222	$	268,272
Multi-family		160,784		127,637		168,683		27,085		219		484,408
Commercial real estate		42,862		33,203		19,061		—		153		95,279
Construction		1,978		—		—		—		1,062		3,040
Other		—		—		—		—		139		139
Commercial business loans		500		—		—		—		349		849
Consumer loans		95		—		—		—		—		95
Total loans held for investment, gross	$	267,550	$	202,545	$	229,807	$	118,036	$	34,144	$	852,082

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

The following tables summarize gross loans held for investment by loan types and risk category at the dates indicated:


	June 30, 2021
					Commercial				Other		Commercial
(In Thousands)	Single-family		Multi-family		Real Estate		Construction		Mortgage		Business		Consumer		Total

Pass	$	258,217	$	483,289	$	95,279	$	3,040	$	139	$	849	$	95	$	840,908
Special Mention		1,767		—		—		—		—		—		—		1,767
Substandard		8,288		1,119		—		—		—		—		—		9,407
Total loans held for investment, gross	$	268,272	$	484,408	$	95,279	$	3,040	$	139	$	849	$	95	$	852,082


	June 30, 2020
					Commercial					Other	Commercial
(In Thousands)	Single-family		Multi-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 summarizes the components of the net change in the allowance for loan losses for the years indicated:


	Year Ended June 30,
(In Thousands)	2021		2020

Balance, beginning of year	$	8,265	$	7,076
(Recovery) provision for loan losses		(708)		1,119
Recoveries		32		72
Charge-offs		(2)		(2)
Balance, end of year	$	7,587	$	8,265

Schedule of allowance for loan losses and recorded investment

The following tables summarize the Corporation’s allowance for loan losses and recorded investment in gross loans, by portfolio type, at the dates and for the years indicated.


	Year Ended June 30, 2021
							Commercial									Commercial
(In Thousands)	Single-family			Multi-family			Real Estate			Construction			Other Mortgage			Business			Consumer			Total

Allowance at beginning of period	$	2,622		$	4,329		$	1,110		$	171		$	3		$	24		$	6		$	8,265
(Recovery) provision for loan losses		(653)			156			(104)			(120)			—			12			1			(708)
Recoveries		31			—			—			—			—			—			1			32
Charge-offs		—			—			—			—			—			—			(2)			(2)
Allowance for loan losses, end of period	$	2,000		$	4,485		$	1,006		$	51		$	3		$	36		$	6		$	7,587

Allowance:
Individually evaluated for impairment	$	384		$	—		$	—		$	—		$	—		$	—		$	—		$	384
Collectively evaluated for impairment		1,616			4,485			1,006			51			3			36			6			7,203
Allowance for loan losses, end of period	$	2,000		$	4,485		$	1,006		$	51		$	3		$	36		$	6		$	7,587

Gross Loans:
Individually evaluated for impairment	$	8,039		$	—		$	—		$	—		$	—		$	—		$	—		$	8,039
Collectively evaluated for impairment		260,233			484,408			95,279			3,040			139			849			95			844,043
Total loans held for investment, gross	$	268,272		$	484,408		$	95,279		$	3,040		$	139		$	849		$	95		$	852,082
Allowance for loan losses as a percentage of gross loans held for investment		0.75	%		0.93	%		1.06	%		1.68	%		2.16	%		4.24	%		6.32	%		0.88	%


	Year Ended June 30, 2020
							Commercial									Commercial
(In Thousands)	Single-family			Multi-family			Real Estate			Construction			Other Mortgage			Business			Consumer			Total

Allowance at beginning of period	$	2,709		$	3,219		$	1,050		$	61		$	3		$	26		$	8		$	7,076
(Recovery) provision for loan losses		(156)			1,110			60			110			—			(2)			(3)			1,119
Recoveries		70			—			—			—			—			—			2			72
Charge-offs		(1)			—			—			—			—			—			(1)			(2)
Allowance for loan losses, end of period	$	2,622		$	4,329		$	1,110		$	171		$	3		$	24		$	6		$	8,265

Allowance:
Individually evaluated for impairment	$	96		$	—		$	—		$	—		$	—		$	4		$	—		$	100
Collectively evaluated for impairment		2,526			4,329			1,110			171			3			20			6			8,165
Allowance for loan losses, end of period	$	2,622		$	4,329		$	1,110		$	171		$	3		$	24		$	6		$	8,265

Gross Loans:
Individually evaluated for impairment	$	3,371		$	—		$	—		$	—		$	—		$	35		$	—		$	3,406
Collectively evaluated for impairment		295,439			491,903			105,235			7,801			143			445			94			901,060
Total loans held for investment, gross	$	298,810		$	491,903		$	105,235		$	7,801		$	143		$	480		$	94		$	904,466
Allowance for loan losses as a percentage of gross loans held for investment		0.88	%		0.88	%		1.05	%		2.19	%		2.10	%		5.00	%		6.38	%		0.91	%

Schedule of recorded investment in non-performing loans


	At or For the Year Ended June 30, 2021
	Unpaid								Net		Average		Interest
	Principal		Related		Recorded				Recorded		Recorded		Income
(In Thousands)	Balance		Charge-offs		Investment		Allowance⁽¹⁾		Investment		Investment		Recognized

Mortgage loans:
Single-family:
With a related allowance	$	7,400	$	—	$	7,400	$	(434)	$	6,966	$	7,187	$	140
Without a related allowance⁽²⁾		1,335		(436)		899		—		899		1,516		—
Total single-family loans		8,735		(436)		8,299		(434)		7,865		8,703		140

Multi-family:
With a related allowance		1,119		—		1,119		(338)		781		374		15
Total multi-family loans		1,119		—		1,119		(338)		781		374		15

Commercial business loans:
With a related allowance		—		—		—		—		—		13		1
Total commercial business loans		—		—		—		—		—		13		1

Total non-performing loans	$	9,854	$	(436)	$	9,418	$	(772)	$	8,646	$	9,090	$	156

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

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


	At or For the Year Ended June 30, 2020
	Unpaid		Related						Net		Average		Interest
	Principal		Charge-offs		Recorded				Recorded		Recorded		Income
(In Thousands)	Balance		Related		Investment		Allowance⁽¹⁾		Investment		Investment		Recognized

Mortgage loans:
Single-family:
With a related allowance	$	3,289	$	—	$	3,289	$	(438)	$	2,851	$	1,541	$	60
Without a related allowance⁽²⁾		2,509		(467)		2,042		—		2,042		2,572		119
Total single-family loans		5,798		(467)		5,331		(438)		4,893		4,113		179

Construction:
Without a related allowance⁽²⁾		—		—		—		—		—		271		20
Total construction loans		—		—		—		—		—		271		20

Commercial business loans:
With a related allowance		35		—		35		(4)		31		42		4
Total commercial business loans		35		—		35		(4)		31		42		4

Total non-performing loans	$	5,833	$	(467)	$	5,366	$	(442)	$	4,924	$	4,426	$	203

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

(2)	There was no related allowance for loan losses because these 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

As of June 30, 2021, loan forbearance related to COVID-19 hardship requests are described below:


	Forbearance Granted			Forbearance Completed⁽¹⁾			Forbearance Remaining
	Number of			Number of			Number of
(Dollars In Thousands)	Loans	Amount		Loans	Amount		Loans	Amount
Single-family loans	59	$	23,551	56	$	22,654	3	$	897
Multi-family loans	5		2,321	5		2,321	—		—
Commercial real estate loans	3		2,000	2		1,055	1		945
Total loan forbearance	67	$	27,872	63	$	26,030	4	$	1,842

(1)	Includes 19 SFR loans totaling $7.1 million which were subsequently extended and classified as restructured non-performing loans.

As of June 30, 2021, loan forbearance outstanding balances 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	3	$	897	0.11	%	78	%	696	N/A	14.0
Commercial real estate loans	1		945	0.11	%	48	%	704	1.71x	4.0
Total loans in forbearance	4	$	1,842	0.22	%	61	%	727	1.53x	8.9

(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.

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

The following tables provide information on the past due status of the Corporation’s loans held for investment, gross, at the dates indicated.


	June 30, 2021
			30-89 Days Past				Total Loans Held for
(In Thousands)	Current		Due		Non-Accrual⁽¹⁾		Investment, Gross

Mortgage loans:
Single-family	$	259,984	$	—	$	8,288	$	268,272
Multi-family		483,289		—		1,119		484,408
Commercial real estate		95,279		—		—		95,279
Construction		3,040		—		—		3,040
Other		139		—		—		139
Commercial business loans		849		—		—		849
Consumer loans		88		7		—		95
Total loans held for investment, gross	$	842,668	$	7	$	9,407	$	852,082

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


	June 30, 2020
			30-89 Days Past				Total Loans Held for
(In Thousands)	Current		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 troubled debt restructurings by nonaccrual versus accrual status

The following table summarizes at the dates indicated the restructured loan balances, net of allowance for loan losses or charge-offs, by loan type and non-accrual versus accrual status at June 30, 2021 and 2020 :


	At June 30,
(In Thousands)	2021		2020
Restructured loans on non-accrual status:
Mortgage loans:
Single-family	$	6,983	$	2,612
Commercial business loans		—		31
Total		6,983		2,643

Restructured loans on accrual status:
Mortgage loans:
Single-family		876		—
Total		876		—
Total restructured loans	$	7,859	$	2,643

Schedule of recorded investment in restructured loans

The following tables show the restructured loans by type, net of allowance for loan losses or charge-offs, at June 30, 2021 and 2020 :


	At June 30, 2021
	Unpaid								Net
	Principal		Related		Recorded				Recorded
(In Thousands)	Balance		Charge-offs		Investment		Allowance⁽¹⁾		Investment

Mortgage loans:
Single-family:
With a related allowance	$	7,151	$	—	$	7,151	$	(384)	$	6,767
Without a related allowance⁽²⁾		1,457		(365)		1,092		—		1,092
Total single-family		8,608		(365)		8,243		(384)		7,859


Total restructured loans	$	8,608	$	(365)	$	8,243	$	(384)	$	7,859

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

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

Summary of Related Party Loan Activity


	Year Ended June 30,
(In Thousands)	2021		2020

Balance, beginning of year	$	1	$	2
Sales and payments		(1)		(1)
Balance, end of year	$	—	$	1