Loans Held for Investment (Tables)

3 Months Ended

Sep. 30, 2021

Loans Held for Investment

Schedule of loans held for investment

	September 30,		June 30,
(In Thousands)	2021		2021
Mortgage loans:
Single-family	$	274,970	$	268,272
Multi-family		489,550		484,408
Commercial real estate		91,779		95,279
Construction(1)		2,574		3,040
Other		137		139
Commercial business loans(2)		865		849
Consumer loans(3)		84		95
Total loans held for investment, gross		859,959		852,082
Advance payments of escrows		68		157
Deferred loan costs, net		6,421		6,308
Allowance for loan losses		(7,413)		(7,587)
Total loans held for investment, net	$	859,035	$	850,960

(1) Net of $3.8 million and $4.5 million of undisbursed loan funds as of September 30, 2021 and June 30, 2021, respectively.

(2) Net of $441 thousand and $460 thousand of undisbursed lines of credit as of September 30, 2021 and June 30, 2021, respectively.

(3) Net of $415 thousand and $425 thousand of undisbursed lines of credit as of September 30, 2021 and June 30, 2021, respectively.

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	$	56,142	$	41,341	$	36,261	$	98,249	$	42,977	$	274,970
Multi-family		164,115		128,288		166,307		30,632		208		489,550
Commercial real estate		45,447		28,973		17,359		—		—		91,779
Construction		2,247		—		—		—		327		2,574
Other		—		—		—		—		137		137
Commercial business loans		519		—		—		—		346		865
Consumer loans		84		—		—		—		—		84
Total loans held for investment, gross	$	268,554	$	198,602	$	219,927	$	128,881	$	43,995	$	859,959

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

	September 30, 2021
					Commercial				Other		Commercial
(In Thousands)	Single-family		Multi-family		Real Estate		Construction		Mortgage		Business		Consumer		Total
Pass	$	267,220	$	488,440	$	91,779	$	2,574	$	137	$	865	$	84	$	851,099
Special Mention		1,610		—		—		—		—		—		—		1,610
Substandard		6,140		1,110		—		—		—		—		—		7,250
Total loans held for investment, gross	$	274,970	$	489,550	$	91,779	$	2,574	$	137	$	865	$	84	$	859,959

	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

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)	2021			2020
Allowance at beginning of period	$	7,587		$	8,265
(Recovery) provision for loan losses		(339)			220
Recoveries:
Mortgage loans:
Single-family		165			5
Total recoveries		165			5
Charge-offs:
Mortgage loans:
Single-family		—			—
Total charge-offs		—			—
Net recoveries (charge-offs)		165			5
Balance at end of period	$	7,413		$	8,490
Allowance for loan losses as a percentage of gross loans held for investment at the end of the period		0.86	%		0.95	%
Net (recoveries) charge-offs as a percentage of average loans receivable, net, during the period (annualized)		(0.08)	%		0.00	%

Schedule of allowance for loan losses and recorded investment

	Quarter Ended September 30, 2021
	Single-			Multi-			Commercial									Commercial
(In Thousands)	family			family			Real Estate			Construction			Other			Business			Consumer			Total
Allowance for loan losses:
Allowance at beginning of period	$	2,000		$	4,485		$	1,006		$	51		$	3		$	36		$	6		$	7,587
(Recovery) provision for loan losses		(338)			40			(39)			(2)			—			1			(1)			(339)
Recoveries		165			—			—			—			—			—			—			165
Charge-offs		—			—			—			—			—			—			—			—
Allowance for loan losses, end of period	$	1,827		$	4,525		$	967		$	49		$	3		$	37		$	5		$	7,413
Allowance for loan losses:
Individually evaluated for impairment	$	260		$	—		$	—		$	—		$	—		$	—		$	—		$	260
Collectively evaluated for impairment		1,567			4,525			967			49			3			37			5			7,153
Allowance for loan losses, end of period	$	1,827		$	4,525		$	967		$	49		$	3		$	37		$	5		$	7,413
Loans held for investment:
Individually evaluated for impairment	$	5,894		$	—		$	—		$	—		$	—		$	—		$	—		$	5,894
Collectively evaluated for impairment		269,076			489,550			91,779			2,574			137			865			84			854,065
Total loans held for investment, gross	$	274,970		$	489,550		$	91,779		$	2,574		$	137		$	865		$	84		$	859,959
Allowance for loan losses as a percentage of gross loans held for investment		0.66	%		0.92	%		1.05	%		1.90	%		2.19	%		4.28	%		5.95	%		0.86	%

	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	%

Schedule of recorded investment in non-performing loans

	At September 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	$	5,437	$	—	$	5,437	$	(309)	$	5,128
Without a related allowance(2)		1,020		(307)		713		—		713
Total single-family loans		6,457		(307)		6,150		(309)		5,841
Multi-family:
With a related allowance		1,111		—		1,111		(336)		775
Total multi-family loans		1,111		—		1,111		(336)		775
Total non-performing loans	$	7,568	$	(307)	$	7,261	$	(645)	$	6,616

(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, 2021
	Unpaid		Related						Net
	Principal		Charge-offs		Recorded				Recorded
(In Thousands)	Balance		Related		Investment		Allowance(1)		Investment
Mortgage loans:
Single-family:
With a related allowance	$	7,400	$	—	$	7,400	$	(434)	$	6,966
Without a related allowance(2)		1,335		(436)		899		—		899
Total single-family loans		8,735		(436)		8,299		(434)		7,865
Multi-family:
With a related allowance		1,119		—		1,119		(338)		781
Total multi-family loans		1,119		—		1,119		(338)		781
Total non-performing loans	$	9,854	$	(436)	$	9,418	$	(772)	$	8,646

(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 loan forbearance related to COVID-19 hardship requests

	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	$	23,471	58	$	23,163	1	$	308
Multi-family loans	5		2,308	5		2,308	—		—
Commercial real estate loans	3		1,990	3		1,990	—		—
Total loan forbearance	67	$	27,769	66	$	27,461	1	$	308

⁽¹⁾  Includes 19 single-family loans totaling $7.1 million which were subsequently extended and classified as restructured non-performing loans, consistent with the Interagency Statement.

As of September 30, 2021, 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	1	$	308	0.04	%	78	%	653	N/A	12.0
Total loans in forbearance	1	$	308	0.04	%	78	%	653	N/A	12.0

(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

	September 30, 2021
			30-89 Days Past				Total Loans Held for
(In Thousands)	Current		Due		Non-Accrual(1)		Investment, Gross
Mortgage loans:
Single-family	$	268,811	$	19	$	6,140	$	274,970
Multi-family		488,440		—		1,110		489,550
Commercial real estate		91,779		—		—		91,779
Construction		2,574		—		—		2,574
Other		137		—		—		137
Commercial business loans		865		—		—		865
Consumer loans		83		1		—		84
Total loans held for investment, gross	$	852,689	$	20	$	7,250	$	859,959

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

	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.

Schedule of Nonperforming Loans on Interest Income

		Quarter Ended September 30,
	2021				2020
		Average	Interest		Average		Interest
		Recorded	Income		Recorded		Income
(In Thousands)		Investment	Recognized		Investment		Recognized
Without related allowances:
Mortgage loans:
Single-family	$	817	$	140	$	1,883	$	—
		817		140		1,883		—
With related allowances:
Mortgage loans:
Single-family		5,827		47		3,510		40
Multi-family		1,114		15		—		—
Commercial business loans		—		—		32		1
		6,941		62		3,542		41
Total	$	7,758	$	202	$	5,425	$	41

Schedule of troubled debt restructurings by nonaccrual versus accrual status

	At		At
(In Thousands)	September 30, 2021		June 30, 2021
Restructured loans on non-accrual status:
Mortgage loans:
Single-family	$	5,102	$	6,983
Total		5,102		6,983
Restructured loans on accrual status:
Mortgage loans:
Single-family		2,773		876
Total		2,773		876
Total restructured loans	$	7,875	$	7,859

Schedule of recorded investment in restructured loans

	At September 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	$	5,191	$	—	$	5,191	$	(260)	$	4,931
Without a related allowance(2)		3,199		(255)		2,944		—		2,944
Total single-family		8,390		(255)		8,135		(260)		7,875
Total restructured loans	$	8,390	$	(255)	$	8,135	$	(260)	$	7,875

(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, 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 the loans have been charged-off to their fair value or the fair value of the collateral is higher than the loan balance.