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Loans and Allowance for Loan Losses
6 Months Ended
Dec. 31, 2017
Loans and Allowance for Loan Losses [Abstract]  
Loans and Allowance for Loan Losses
(5)
Loans and Allowance for Loan Losses

Loan segments and classes at December 31, 2017 and June 30, 2017 are summarized as follows:

(In thousands)
 
December 31, 2017
  
June 30, 2017
 
Residential real estate:
      
Residential real estate
 
$
252,015
  
$
245,331
 
Residential construction and land
  
7,391
   
7,160
 
Multi-family
  
13,707
   
9,199
 
Commercial real estate:
        
Commercial real estate
  
272,253
   
257,964
 
Commercial construction
  
24,901
   
28,430
 
Consumer loan:
        
Home equity
  
21,090
   
21,076
 
Consumer installment
  
4,925
   
4,790
 
Commercial loans
  
78,153
   
60,381
 
Total gross loans
  
674,435
   
634,331
 
Allowance for loan losses
  
(11,352
)
  
(11,022
)
Deferred fees and costs
  
790
   
878
 
Loans receivable, net
 
$
663,873
  
$
624,187
 

Management closely monitors the quality of the loan portfolio and has established a loan review process designed to help grade the quality and profitability of the Company’s loan portfolio.  The credit quality grade helps management make a consistent assessment of each loan relationship’s credit risk. Consistent with regulatory guidelines, The Bank of Greene County provides for the classification of loans considered being of lesser quality.  Such ratings coincide with the “Substandard,” “Doubtful” and “Loss” classifications used by federal regulators in their examination of financial institutions. Generally, an asset is considered Substandard if it is inadequately protected by the current net worth and paying capacity of the obligors and/or the collateral pledged. Substandard assets include those characterized by the distinct possibility that the insured financial institution will sustain some loss if the deficiencies are not corrected. Assets classified as Doubtful have all the weaknesses inherent in assets classified Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable. Assets classified as Loss are those considered uncollectible and of such little value that their continuance as assets without the establishment of a full loss reserve and/or charge-off is not warranted. Assets that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories but otherwise possess weaknesses are designated “Special Mention.”   Management also maintains a listing of loans designated “Watch.” These loans represent borrowers with declining earnings, strained cash flow, increasing leverage and/or weakening market fundamentals that indicate above average risk.

When The Bank of Greene County classifies problem assets as either Substandard or Doubtful, it generally establishes a specific valuation allowance or “loss reserve” in an amount deemed prudent by management.  General allowances represent loss allowances that have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular loans.  When The Bank of Greene County identifies problem loans as being impaired, it is required to evaluate whether the Bank will be able to collect all amounts due either through repayments or the liquidation of the underlying collateral.  If it is determined that impairment exists, the Bank is required either to establish a specific allowance for losses equal to the amount of impairment of the assets, or to charge-off such amount.  The Bank of Greene County’s determination as to the classification of its loans and the amount of its valuation allowance is subject to review by its regulatory agencies, which can order the establishment of additional general or specific loss allowances.  The Bank of Greene County reviews its portfolio monthly to determine whether any assets require classification in accordance with applicable regulations.

The Bank primarily has four segments within its loan portfolio that it considers when measuring credit quality: residential real estate loans, commercial real estate loans, consumer loans and commercial loans.  The residential real estate portfolio consists of residential, construction, and multi-family loan classes. Commercial real estate loans consist of commercial real estate and commercial construction loan classes. Consumer loans consist of home equity loan and consumer installment loan classes. The inherent risk within the loan portfolio varies depending upon each of these loan types.

The Bank of Greene County’s primary lending activity is the origination of residential mortgage loans, including home equity loans, which are collateralized by residences.   Generally, residential mortgage loans are made in amounts up to 89.9% of the appraised value of the property.  However, The Bank of Greene County will originate residential mortgage loans with loan-to-value ratios of up to 95.0%, with private mortgage insurance.  In the event of default by the borrower, The Bank of Greene County will acquire and liquidate the underlying collateral. By originating the loan at a loan-to-value ratio of 89.9% or less or obtaining private mortgage insurance, The Bank of Greene County limits its risk of loss in the event of default.  However, the market values of the collateral may be adversely impacted by declines in the economy.  Home equity loans may have an additional inherent risk if The Bank of Greene County does not hold the first mortgage.  The Bank of Greene County may stand in a secondary position in the event of collateral liquidation resulting in a greater chance of insufficiency to meet all obligations.
 
Construction lending generally involves a greater degree of risk than other residential mortgage lending.  The repayment of the construction loan is, to a great degree, dependent upon the successful and timely completion of the construction of the subject property within specified cost limits.  The Bank of Greene County completes inspections during the construction phase prior to any disbursements.  The Bank of Greene County limits its risk during the construction as disbursements are not made until the required work for each advance has been completed.  Construction delays may further impair the borrower’s ability to repay the loan.

Loans collateralized by commercial real estate, and multi-family dwellings, such as apartment buildings generally are larger than residential loans and involve a greater degree of risk. Commercial real estate loans often involve large loan balances to single borrowers or groups of related borrowers. Payments on these loans depend to a large degree on the results of operations and management of the properties or underlying businesses, and may be affected to a greater extent by adverse conditions in the real estate market or the economy in general. Accordingly, the nature of commercial real estate loans makes them more difficult for management to monitor and evaluate.

Consumer loans generally have shorter terms and higher interest rates than residential mortgage loans. In addition, consumer loans expand the products and services offered by The Bank of Greene County to better meet the financial services needs of its customers.  Consumer loans generally involve greater credit risk than residential mortgage loans because of the difference in the nature of the underlying collateral.  Repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance because of the greater likelihood of damage, loss or depreciation in the underlying collateral. The remaining deficiency often does not warrant further substantial collection efforts against the borrower beyond obtaining a deficiency judgment. In addition, consumer loan collections depend on the borrower’s personal financial stability.  Furthermore, the application of various federal and state laws, including federal and state bankruptcy and insolvency laws, may limit the amount that can be recovered on such loans.

Commercial lending generally involves greater risk than residential mortgage lending and involves risks that are different from those associated with residential and commercial real estate mortgage lending. Real estate lending is generally considered to be collateral-based, with loan amounts based on fixed loan-to-collateral values, and liquidation of the underlying real estate collateral is viewed as the primary source of repayment in the event of borrower default. Although commercial loans may be collateralized by equipment or other business assets, the liquidation of collateral in the event of a borrower default is often an insufficient source of repayment because equipment and other business assets may be obsolete or of limited use, among other things. Accordingly, the repayment of a commercial loan depends primarily on the creditworthiness of the borrower (and any guarantors), while liquidation of collateral is a secondary and often insufficient source of repayment.

Loan balances by internal credit quality indicator at December 31, 2017 are shown below.
 
(In thousands)
 
Performing
  
Watch
  
Special Mention
  
Substandard
  
Total
 
Residential real estate
 
$
248,721
  
$
930
  
$
90
  
$
2,274
  
$
252,015
 
Residential construction and land
  
7,391
   
-
   
-
   
-
   
7,391
 
Multi-family
  
12,866
   
-
   
756
   
85
   
13,707
 
Commercial real estate
  
260,337
   
-
   
10,217
   
1,699
   
272,253
 
Commercial construction
  
24,725
   
-
   
-
   
176
   
24,901
 
Home equity
  
20,433
   
-
   
-
   
657
   
21,090
 
Consumer installment
  
4,915
   
-
   
-
   
10
   
4,925
 
Commercial loans
  
77,042
   
16
   
242
   
853
   
78,153
 
Total gross loans
 
$
656,430
  
$
946
  
$
11,305
  
$
5,754
  
$
674,435
 
 
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
 

The Company had no loans classified doubtful or loss at December 31, 2017 or June 30, 2017.  The $10.8 million increase in loans designated as special mention at December 31, 2017 compared to June 30, 2017 represented loans which, based on updated annual review, indicated weaknesses in borrowers’ cash flow, warranting management’s closer monitoring.  At December 31, 2017, all of these loans were performing and management believes that the identified weaknesses do not expose the Company to sufficient risk to warrant a classification of substandard.

Nonaccrual Loans

Management places loans on nonaccrual status once the loans have become 90 days or more delinquent.  A nonaccrual loan is defined as a loan in which collectability is questionable and therefore interest on the loan will no longer be recognized on an accrual basis.  A loan is not placed back on accrual status until the borrower has demonstrated the ability and willingness to make timely payments on the loan.  A loan does not have to be 90 days delinquent in order to be classified as nonaccrual.   Nonaccrual loans consisted primarily of loans secured by real estate at December 31, 2017 and June 30, 2017.  Loans on nonaccrual status totaled $3.7 million at December 31, 2017 of which $1.9 million were in the process of foreclosure. At December 31, 2017, there were thirteen residential loans in the process of foreclosure totaling $1.3 million.  Included in nonaccrual loans were $1.7 million of loans which were less than 90 days past due at December 31, 2017, but have a recent history of delinquency greater than 90 days past due. These loans will be returned to accrual status once they have demonstrated a history of timely payments.  Included in total loans past due were $66,000 of loans which were making payments pursuant to forbearance agreements. Under the forbearance agreements, the customers have made arrangements with the Bank to bring the loans current over a specified period of time (resulting in an insignificant delay in repayment).  During this term of the forbearance agreement, the Bank has agreed not to continue foreclosure proceedings.  Loans on nonaccrual status totaled $3.6 million at June 30, 2017 of which $1.6 million were in the process of foreclosure. At June 30, 2017, there were twelve residential loans in the process of foreclosure totaling $967,000. Included in nonaccrual loans were $1.9 million of loans which were less than 90 days past due at June 30, 2017, but have a recent history of delinquency greater than 90 days past due.

The following table sets forth information regarding delinquent and/or nonaccrual loans at December 31, 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
 
$
2,592
  
$
794
  
$
1,187
  
$
4,573
  
$
247,442
  
$
252,015
  
$
1,752
 
Residential construction and land
  
-
   
-
   
-
   
-
   
7,391
   
7,391
   
-
 
Multi-family
  
-
   
-
   
-
   
-
   
13,707
   
13,707
   
-
 
Commercial real estate
  
1,216
   
806
   
391
   
2,413
   
269,840
   
272,253
   
1,108
 
Commercial construction
  
-
   
-
   
176
   
176
   
24,725
   
24,901
   
176
 
Home equity
  
94
   
119
   
214
   
427
   
20,663
   
21,090
   
333
 
Consumer installment
  
104
   
-
   
10
   
114
   
4,811
   
4,925
   
10
 
Commercial loans
  
380
   
118
   
-
   
498
   
77,655
   
78,153
   
284
 
Total gross loans
 
$
4,386
  
$
1,837
  
$
1,978
  
$
8,201
  
$
666,234
  
$
674,435
  
$
3,663
 
 
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
 

The Bank of Greene County had accruing loans delinquent more than 90 days totaling $0 and $69,000 at December 31, 2017 and June 30, 2017, respectively.  The loans delinquent more than 90 days and accruing consist of loans that are well collateralized and the borrowers have demonstrated the ability and willingness to pay.  The borrower has made arrangements with the Bank to bring the loan current within a specified time period and has made a series of payments as agreed.

The table below details additional information related to nonaccrual loans for the three and six months ended December 31:

  
For the three months
ended December 31,
  
For the six months
ended December 31
 
(In thousands)
 
2017
  
2016
  
2017
  
2016
 
Interest income that would have been recorded if loans had been performing in accordance with original terms
 
$
59
  
$
56
  
$
137
  
$
136
 
Interest income that was recorded on nonaccrual loans
  
31
   
26
   
65
   
54
 

Impaired Loan Analysis

The Company identifies impaired loans and measures the impairment in accordance with FASB ASC subtopic “Receivables – Loan Impairment.”  Management may consider a loan impaired once it is classified as nonaccrual and when it is probable that the borrower will be unable to repay the loan according to the original contractual terms of the loan agreement or the loan is restructured in a troubled debt restructuring.  It should be noted that management does not evaluate all loans individually for impairment.  Generally, The Bank of Greene County considers residential mortgages, home equity loans and installment loans as small, homogeneous loans, which are evaluated for impairment collectively based on historical loan experience and other factors.  In contrast, large commercial mortgage, construction, multi-family, business loans and select larger balance residential mortgage loans are reviewed individually and considered impaired if it is probable that The Bank of Greene County will not be able to collect scheduled payments of principal and interest when due, according to the contractual terms of the loan agreement.  The measurement of impaired loans is generally based on the fair value of the underlying collateral.  The majority of The Bank of Greene County loans, including most nonaccrual loans, are small homogenous loan types adequately supported by collateral.  Management considers the payment status of loans in the process of evaluating the adequacy of the allowance for loan losses among other factors.  Based on this evaluation, a delinquent loan’s risk rating may be downgraded to either pass-watch, special mention, or substandard, and the allocation of the allowance for loan loss is based upon the risk associated with such designation.  Loans that have been modified as a troubled debt restructuring are included in impaired loans.  The measurement of impairment is generally based on the discounted cash flows based on the original rate of the loan before the restructuring, unless it is determined that the restructured loan is collateral dependent.  If the restructured loan is deemed to be collateral dependent, impairment is based on the fair value of the underlying collateral.
 
The tables below detail additional information on impaired loans at the date or periods indicated:
 
  
As of December 31, 2017
  
For the three months ended
December 31, 2017
  
For the six months ended
December 31, 2017
 
(In thousands)
 
Recorded
Investment
  
Unpaid
Principal
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
                
Commercial real estate
 
$
801
  
$
801
  
$
-
  
$
803
  
$
7
  
$
805
  
$
15
 
Home equity
  
181
   
181
   
-
   
181
   
-
   
182
   
-
 
Commercial loans
  
359
   
359
   
-
   
361
   
-
   
303
   
-
 
Impaired loans with no allowance
  
1,341
   
1,341
   
-
   
1,345
   
7
   
1,290
   
15
 
                             
With an allowance recorded:
                            
Residential real estate
  
1,819
   
1,819
   
348
   
1,668
   
15
   
1,602
   
26
 
Commercial real estate
  
413
   
413
   
101
   
418
   
-
   
424
   
-
 
Commercial construction
  
176
   
176
   
22
   
176
   
-
   
176
   
-
 
Home equity
  
324
   
324
   
62
   
324
   
5
   
324
   
8
 
Impaired loans with allowance
  
2,732
   
2,732
   
533
   
2,586
   
20
   
2,526
   
34
 
                             
Total impaired:
                            
Residential real estate
  
1,819
   
1,819
   
348
   
1,668
   
15
   
1,602
   
26
 
Commercial real estate
  
1,214
   
1,214
   
101
   
1,221
   
7
   
1,229
   
15
 
Commercial construction
  
176
   
176
   
22
   
176
   
-
   
176
   
-
 
Home equity
  
505
   
505
   
62
   
505
   
5
   
506
   
8
 
Commercial loans
  
359
   
359
   
-
   
361
   
-
   
303
   
-
 
Total impaired loans
 
$
4,073
  
$
4,073
  
$
533
  
$
3,931
  
$
27
  
$
3,816
  
$
49
 

  
As of June 30, 2017
  
For the three months ended
December 31, 2016
  
For the six months ended
December 31, 2016
 
(In thousands)
 
Recorded
Investment
  
Unpaid
Principal
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest Income
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
                
Residential real estate
 
$
-
  
$
-
  
$
-
  
$
266
  
$
-
  
$
266
  
$
-
 
Commercial real estate
  
809
   
809
   
-
   
821
   
4
   
921
   
14
 
Home equity
  
186
   
186
   
-
   
2
   
-
   
4
   
-
 
Commercial loans
  
186
   
186
   
-
   
65
   
1
   
33
   
1
 
Impaired loans with no allowance
  
1,181
   
1,181
   
-
   
1,154
   
5
   
1,224
   
15
 
                             
With an allowance recorded:
                            
Residential real estate
  
1,455
   
1,455
   
278
   
1,238
   
12
   
1,241
   
24
 
Commercial real estate
  
440
   
440
   
135
   
749
   
7
   
576
   
11
 
Commercial construction
  
176
   
176
   
23
   
-
   
-
   
-
   
-
 
Commercial loans
  
-
   
-
   
-
   
81
   
-
   
82
   
2
 
Impaired loans with allowance
  
2,071
   
2,071
   
436
   
2,068
   
19
   
1,899
   
37
 
                             
Total impaired:
                            
Residential real estate
  
1,455
   
1,455
   
278
   
1,504
   
12
   
1,507
   
24
 
Commercial real estate
  
1,249
   
1,249
   
135
   
1,570
   
11
   
1,497
   
25
 
Commercial construction
  
176
   
176
   
23
   
-
   
-
   
-
   
-
 
Home equity
  
186
   
186
   
-
   
2
   
-
   
4
   
-
 
Commercial loans
  
186
   
186
   
-
   
146
   
1
   
115
   
3
 
Total impaired loans
 
$
3,252
  
$
3,252
  
$
436
  
$
3,222
  
$
24
  
$
3,123
  
$
52
 
 
The table below details loans that have been modified as a troubled debt restructuring during the periods indicated.

(Dollars in thousands)
 
Number of
Contracts
  
Pre-Modification
Outstanding
Recorded
Investment
  
Post-Modification
Outstanding
Recorded
Investment
  
Current outstanding
Recorded
Investment
 
For the six months ended December 31, 2017
            
Home equity
  
1
  
$
325
  
$
325
  
$
324
 
                 
For the six months ended December 31, 2016
 
None
   
-
   
-
   
-
 

There were no loans modified as a troubled debt restructuring during the three months ended December 31, 2017 and 2016.  During the six months ended December 31, 2017, a home equity loan was modified to extend the term of the loan thereby reducing the monthly payments for the borrower.

There were no loans that had been modified as a troubled debt restructuring during the twelve months prior to June 30, 2017 or 2016 which have subsequently defaulted during the three and six months ended December 31, 2017 or 2016, respectively.

Allowance for Loan Losses

The allowance for loan losses is established through a provision for loan losses based on management’s evaluation of the risk inherent in the loan portfolio, the composition of the loan portfolio, specific impaired loans and current economic conditions.  Such evaluation, which includes a review of certain identified loans on which full collectability may not be reasonably assured, considers among other matters, the estimated net realizable value or the fair value of the underlying collateral, economic conditions, payment status of the loan, historical loan loss experience and other factors that warrant recognition in providing for the loan loss allowance.  In addition, various regulatory agencies, as an integral part of their examination process, periodically review The Bank of Greene County’s allowance for loan losses.  Such agencies may require The Bank of Greene County to recognize additions to the allowance based on their judgment about information available to them at the time of their examination. The Bank of Greene County considers smaller balance residential mortgages, home equity loans, commercial loans and installment loans to customers as small, homogeneous loans, which are evaluated for impairment collectively based on historical loss experience.  Larger balance residential, commercial mortgage and business loans are viewed individually and considered impaired if it is probable that The Bank of Greene County will not be able to collect scheduled payments of principal and interest when due, according to the contractual terms of the loan agreements.  The measurement of impaired loans is generally based on the fair value of the underlying collateral.  The Bank of Greene County charges loans off against the allowance for credit losses when it becomes evident that a loan cannot be collected within a reasonable amount of time or that it will cost the Bank more than it will receive, and all possible avenues of repayment have been analyzed, including the potential of future cash flow, the value of the underlying collateral, and strength of any guarantors or co-borrowers.  Generally, consumer loans and smaller business loans (not secured by real estate) in excess of 90 days are charged-off against the allowance for loan losses, unless equitable arrangements are made.   For loans secured by real estate, a charge-off is recorded when it is determined that the collection of all or a portion of a loan may not be collected and the amount of that loss can be reasonably estimated.

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 December 31, 2017
 
(In thousands)
 
Balance at
September 30, 2017
  
Charge-offs
  
Recoveries
  
Provision
  
Balance at
December 31, 2017
 
Residential real estate
 
$
2,076
  
$
27
  
$
-
  
$
50
  
$
2,099
 
Residential construction and land
  
93
   
-
   
-
   
(7
)
  
86
 
Multi-family
  
76
   
-
   
-
   
19
   
95
 
Commercial real estate
  
5,759
   
-
   
-
   
145
   
5,904
 
Commercial construction
  
750
   
-
   
-
   
(147
)
  
603
 
Home equity
  
315
   
-
   
-
   
(3
)
  
312
 
Consumer installment
  
203
   
89
   
18
   
120
   
252
 
Commercial loans
  
1,748
   
-
   
-
   
253
   
2,001
 
Unallocated
  
78
   
-
   
-
   
(78
)
  
-
 
Total
 
$
11,098
  
$
116
  
$
18
  
$
352
  
$
11,352
 
 
  
Activity for the six months ended December 31, 2017
 
(In thousands)
 
Balance at
June 30, 2017
  
Charge-offs
  
Recoveries
  
Provision
  
Balance at
December 31, 2017
 
Residential real estate
 
$
2,289
  
$
71
  
$
-
  
$
(119
)
 
$
2,099
 
Residential construction and land
  
89
   
-
   
-
   
(3
)
  
86
 
Multi-family
  
43
   
-
   
-
   
52
   
95
 
Commercial real estate
  
5,589
   
-
   
-
   
315
   
5,904
 
Commercial construction
  
687
   
-
   
-
   
(84
)
  
603
 
Home equity
  
234
   
-
   
-
   
78
   
312
 
Consumer installment
  
231
   
177
   
36
   
162
   
252
 
Commercial loans
  
1,680
   
157
   
-
   
478
   
2,001
 
Unallocated
  
180
   
-
   
-
   
(180
)
  
-
 
Total
 
$
11,022
  
$
405
  
$
36
  
$
699
  
$
11,352
 
 
  
Allowance for Loan Losses
  
Loans Receivable
 
  
Ending Balance At
December 31, 2017
Impairment Analysis
  
Ending Balance At
December 31, 2017
Impairment Analysis
 
(In thousands)
 
Individually
Evaluated
  
Collectively
Evaluated
  
Individually
Evaluated
  
Collectively
Evaluated
 
Residential real estate
 
$
348
  
$
1,751
  
$
1,819
  
$
250,196
 
Residential construction and land
  
-
   
86
   
-
   
7,391
 
Multi-family
  
-
   
95
   
-
   
13,707
 
Commercial real estate
  
101
   
5,803
   
1,214
   
271,039
 
Commercial construction
  
22
   
581
   
176
   
24,725
 
Home equity
  
62
   
250
   
505
   
20,585
 
Consumer installment
  
-
   
252
   
-
   
4,925
 
Commercial loans
  
-
   
2,001
   
359
   
77,794
 
Unallocated
  
-
   
-
   
-
   
-
 
Total
 
$
533
  
$
10,819
  
$
4,073
  
$
670,362
 

  
Activity for the three months ended December 31, 2016
 
(In thousands)
 
Balance at
September 30, 2016
  
Charge-offs
  
Recoveries
  
Provision
  
Balance at
December 31, 2016
 
Residential real estate
 
$
2,242
  
$
90
  
$
-
  
$
82
  
$
2,234
 
Residential construction and land
  
63
   
-
   
-
   
-
   
63
 
Multi-family
  
18
   
-
   
-
   
-
   
18
 
Commercial real estate
  
4,981
   
-
   
-
   
384
   
5,365
 
Commercial construction
  
628
   
-
   
-
   
(25
)
  
603
 
Home equity
  
251
   
-
   
-
   
6
   
257
 
Consumer installment
  
168
   
69
   
18
   
107
   
224
 
Commercial loans
  
1,492
   
-
   
-
   
21
   
1,513
 
Unallocated
  
133
   
-
   
-
   
11
   
144
 
Total
 
$
9,976
  
$
159
  
$
18
  
$
586
  
$
10,421
 
 
  
Activity for the six months ended December 31, 2016
 
(In thousands)
 
Balance at
June 30, 2016
  
Charge-offs
  
Recoveries
  
Provision
  
Balance at
December 31, 2016
 
Residential real estate
 
$
2,396
  
$
90
  
$
-
  
$
(72
)
 
$
2,234
 
Residential construction and land
  
75
   
-
   
-
   
(12
)
  
63
 
Multi-family
  
22
   
-
   
-
   
(4
)
  
18
 
Commercial real estate
  
4,541
   
-
   
-
   
824
   
5,365
 
Commercial construction
  
502
   
-
   
-
   
101
   
603
 
Home equity
  
309
   
-
   
-
   
(52
)
  
257
 
Consumer installment
  
228
   
141
   
35
   
102
   
224
 
Commercial loans
  
1,412
   
-
   
3
   
98
   
1,513
 
Unallocated
  
-
   
-
   
-
   
144
   
144
 
Total
 
$
9,485
  
$
231
  
$
38
  
$
1,129
  
$
10,421
 
 
  
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
 

Foreclosed real estate (FRE)

FRE consists of properties acquired through mortgage loan foreclosure proceedings or in full or partial satisfaction of loans. The following table sets forth information regarding FRE at December 31, 2017 and June 30, 2017:

(in thousands)
 
December 31, 2017
  
June 30, 2017
 
Residential real estate
 
$
79
  
$
-
 
Commercial real estate
  
826
   
799
 
Total foreclosed real estate
 
$
905
  
$
799