Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Sep. 30, 2017

Loans and Allowance for Loan Losses [Abstract]

Major Loan Segments and Classes

Loan segments and classes at September 30, 2017 and June 30, 2017 are summarized as follows:

(In thousands)	September 30, 2017			June 30, 2017
Residential real estate:
Residential real estate	$	247,557		$	245,331
Residential construction and land		7,986			7,160
Multi-family		9,216			9,199
Commercial real estate:
Commercial real estate		261,462			257,964
Commercial construction		31,140			28,430
Consumer loan:
Home equity		21,058			21,076
Consumer installment		4,795			4,790
Commercial loans		65,479			60,381
Total gross loans		648,693			634,331
Allowance for loan losses		(11,098	)		(11,022	)
Deferred fees and costs		851			878
Loans receivable, net	$	638,446		$	624,187

Loan Balances by Internal Credit Quality Indicator

Loan balances by internal credit quality indicator at September 30, 2017 are shown below.

(In thousands)	Performing		Watch		Special Mention		Substandard		Total
Residential real estate	$	244,334	$	1,169	$	91	$	1,963	$	247,557
Residential construction and land		7,986		-		-		-		7,986
Multi-family		8,356		-		773		87		9,216
Commercial real estate		248,918		-		10,572		1,972		261,462
Commercial construction		30,964		-		-		176		31,140
Home equity		20,400		-		-		658		21,058
Consumer installment		4,763		23		-		9		4,795
Commercial loans		64,230		17		49		1,183		65,479
Total gross loans	$	629,951	$	1,209	$	11,485	$	6,048	$	648,693

Loan balances by internal credit quality indicator at June 30, 2017 are shown below.

(In thousands)	Performing		Watch		Special Mention		Substandard		Total
Residential real estate	$	242,592	$	813	$	91	$	1,835	$	245,331
Residential construction and land		7,160		-		-		-		7,160
Multi-family		9,110		-		-		89		9,199
Commercial real estate		255,090		419		404		2,051		257,964
Commercial construction		28,254		-		-		176		28,430
Home equity		20,858		-		-		218		21,076
Consumer installment		4,770		10		-		10		4,790
Commercial loans		59,030		-		60		1,291		60,381
Total gross loans	$	626,864	$	1,242	$	555	$	5,670	$	634,331

Delinquent and/or Nonaccrual Loans by Past Due Status

The following table sets forth information regarding delinquent and/or nonaccrual loans at September 30, 2017:

(In thousands)	30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total Loans		Loans on Non- accrual
Residential real estate	$	1,704	$	1,036	$	967	$	3,707	$	243,850	$	247,557	$	1,371
Residential construction and land		-		-		-		-		7,986		7,986		-
Multi-family		-		-		-		-		9,216		9,216		-
Commercial real estate		170		747		391		1,308		260,154		261,462		1,051
Commercial construction		-		-		176		176		30,964		31,140		176
Home equity		115		38		176		329		20,729		21,058		333
Consumer installment		48		23		9		80		4,715		4,795		9
Commercial loans		-		178		293		471		65,008		65,479		370
Total gross loans	$	2,037	$	2,022	$	2,012	$	6,071	$	642,622	$	648,693	$	3,310

The following table sets forth information regarding delinquent and/or nonaccrual loans at June 30, 2017:

(In thousands)	30-59 days past due		60-89 days past due		90 days or more past due		Total past due		Current		Total Loans		Loans on Non- accrual
Residential real estate	$	2,088	$	515	$	935	$	3,538	$	241,793	$	245,331	$	1,240
Residential construction and land		-		-		-		-		7,160		7,160		-
Multi-family		-		-		-		-		9,199		9,199		-
Commercial real estate		74		1,070		540		1,684		256,280		257,964		1,452
Commercial construction		-		176		-		176		28,254		28,430		176
Home equity		220		186		33		439		20,637		21,076		218
Consumer installment		22		10		10		42		4,748		4,790		10
Commercial loans		18		186		202		406		59,975		60,381		476
Total gross loans	$	2,422	$	2,143	$	1,720	$	6,285	$	628,046	$	634,331	$	3,572

Nonaccrual Loans, Interest Income Data

The table below details additional information related to nonaccrual loans for the three months ended September 30:

(In thousands)	2017		2016
Interest income that would have been recorded if loans had been performing in accordance with original terms	$	78	$	80
Interest income that was recorded on nonaccrual loans		34		28

Impaired Loans by Loan Portfolio Class

The tables below detail additional information on impaired loans at the date or periods indicated:

	At September 30, 2017						For the three months ended September 30, 2017
(In thousands)	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial real estate	$	805	$	805	$	-	$	807	$	8
Home equity		181		181		-		183		-
Commercial loans		370		370		-		245		-
Total impaired loans with no allowance		1,356		1,356		-		1,235		8
With an allowance recorded:
Residential real estate		1,706		1,706		335		1,536		11
Commercial real estate		425		425		108		430		-
Commercial construction		176		176		22		176		-
Home equity		325		325		63		325		3
Total impaired loans with allowance		2,632		2,632		528		2,467		14
Total impaired:
Residential real estate		1,706		1,706		335		1,536		11
Commercial real estate		1,230		1,230		108		1,237		8
Commercial construction		176		176		22		176		-
Home equity		506		506		63		508		3
Commercial loans		370		370		-		245		-
Total impaired loans	$	3,988	$	3,988	$	528	$	3,702	$	22

	At June 30, 2017						For the three months ended September 30, 2016
(In thousands)	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	-	$	-	$	-	$	375	$	-
Commercial real estate		809		809		-		1,021		10
Home equity		186		186		-		5		-
Commercial loans		186		186		-		-		-
Total impaired loans with no allowance		1,181		1,181		-		1,401		10
With an allowance recorded:
Residential real estate		1,455		1,455		278		1,345		12
Commercial real estate		440		440		135		402		4
Commercial construction		176		176		23		-		-
Commercial loans		-		-		-		83		2
Total impaired loans with allowance		2,071		2,071		436		1,830		18
Total impaired loans:
Residential real estate		1,455		1,455		278		1,720		12
Commercial real estate		1,249		1,249		135		1,423		14
Commercial construction		176		176		23		-		-
Home equity		186		186		-		5		-
Commercial loans		186		186		-		83		2
Total impaired loans	$	3,252	$	3,252	$	436	$	3,231	$	28

Loans Modified as Troubled Debt Restructuring

The table below details loans that have been modified as a troubled debt restructuring during the three months ended September 30, 2017 or 2016.

(Dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Current Outstanding Recorded Investment
September 30, 2017
Home equity		1	$	325	$	325	$	325
September 30, 2016
None

Activity and Allocation of Allowance for Loan Losses

The following tables set forth the activity and allocation of the allowance for loan losses by loan category during and at the periods indicated.  The allowance is allocated to each loan category based on historical loss experience and economic conditions.

	Activity for the three months ended September 30, 2017
(In thousands)	Balance at June 30, 2017		Charge-offs		Recoveries		Provision			Balance at September 30, 2017
Residential real estate	$	2,289	$	44	$	-	$	(169	)	$	2,076
Residential construction and land		89		-		-		4			93
Multi-family		43		-		-		33			76
Commercial real estate		5,589		-		-		170			5,759
Commercial construction		687		-		-		63			750
Home equity		234		-		-		81			315
Consumer installment		231		88		18		42			203
Commercial loans		1,680		157		-		225			1,748
Unallocated		180		-		-		(102	)		78
Total	$	11,022	$	289	$	18	$	347		$	11,098

	Allowance for Loan Losses				Loans Receivable
	Ending Balance At September 30, 2017 Impairment Analysis				Ending Balance At September 30, 2017 Impairment Analysis
(In thousands)	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
Residential real estate	$	335	$	1,741	$	1,706	$	245,851
Residential construction and land		-		93		-		7,986
Multi-family		-		76		-		9,216
Commercial real estate		108		5,651		1,230		260,232
Commercial construction		22		728		176		30,964
Home equity		63		252		506		20,552
Consumer installment		-		203		-		4,795
Commercial loans		-		1,748		370		65,109
Unallocated		-		78		-		-
Total	$	528	$	10,570	$	3,988	$	644,705

	Activity for the three months ended September 30, 2016
(In thousands)	Balance at June 30, 2016		Charge-offs		Recoveries		Provision			Balance at September 30, 2016
Residential real estate	$	2,396	$	-	$	-	$	(154	)	$	2,242
Residential construction and land		75		-		-		(12	)		63
Multi-family		22		-		-		(4	)		18
Commercial real estate		4,541		-		-		440			4,981
Commercial construction		502		-		-		126			628
Home equity		309		-		-		(58	)		251
Consumer installment		228		72		17		(5	)		168
Commercial loans		1,412		-		3		77			1,492
Unallocated		-		-		-		133			133
Total	$	9,485	$	72	$	20	$	543		$	9,976

	Allowance for Loan Losses				Loans Receivable
	Ending Balance At June 30, 2017 Impairment Analysis				Ending Balance At June 30, 2017 Impairment Analysis
(In thousands)	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
Residential real estate	$	278	$	2,011	$	1,455	$	243,876
Residential construction and land		-		89		-		7,160
Multi-family		-		43		-		9,199
Commercial real estate		135		5,454		1,249		256,715
Commercial construction		23		664		176		28,254
Home equity		-		234		186		20,890
Consumer installment		-		231		-		4,790
Commercial loans		-		1,680		186		60,195
Unallocated		-		180		-		-
Total	$	436	$	10,586	$	3,252	$	631,079

Schedule of Foreclosed Real Estate

The following table sets forth information regarding FRE at September 30, 2017 and June 30, 2017:

(in thousands)	September 30, 2017		June 30, 2017
Commercial real estate	$	752	$	799
Total foreclosed real estate	$	752	$	799