Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Mar. 31, 2018

Loans and Allowance for Loan Losses [Abstract]

Loan segments and classes at March 31, 2018 and June 30, 2017 are summarized as follows:

(In thousands)	March 31, 2018			June 30, 2017
Residential real estate:
Residential real estate	$	253,345		$	245,331
Residential construction and land		8,153			7,160
Multi-family		14,201			9,199
Commercial real estate:
Commercial real estate		279,476			257,964
Commercial construction		30,495			28,430
Consumer loan:
Home equity		21,290			21,076
Consumer installment		4,863			4,790
Commercial loans		77,547			60,381
Total gross loans		689,370			634,331
Allowance for loan losses		(11,622	)		(11,022	)
Deferred fees and costs		747			878
Loans receivable, net	$	678,495		$	624,187

Loan Balances by Internal Credit Quality Indicator

Loan balances by internal credit quality indicator at March 31, 2018 are shown below.

(In thousands)	Performing		Watch		Special Mention		Substandard		Total
Residential real estate	$	250,543	$	538	$	89	$	2,175	$	253,345
Residential construction and land		8,153		-		-		-		8,153
Multi-family		11,908		-		2,205		88		14,201
Commercial real estate		269,164		173		8,468		1,671		279,476
Commercial construction		30,319		-		-		176		30,495
Home equity		20,635		-		-		655		21,290
Consumer installment		4,826		17		-		20		4,863
Commercial loans		76,440		18		240		849		77,547
Total gross loans	$	671,988	$	746	$	11,002	$	5,634	$	689,370

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 March 31, 2018:

(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	$	2,124	$	244	$	883	$	3,251	$	250,094	$	253,345	$	1,640
Residential construction and land		-		-		-		-		8,153		8,153		-
Multi-family		-		-		-		-		14,201		14,201		-
Commercial real estate		1,949		743		674		3,366		276,110		279,476		1,278
Commercial construction		-		-		-		-		30,495		30,495		-
Home equity		260		-		214		474		20,816		21,290		332
Consumer installment		34		17		9		60		4,803		4,863		9
Commercial loans		449		18		182		649		76,898		77,547		279
Total gross loans	$	4,816	$	1,022	$	1,962	$	7,800	$	681,570	$	689,370	$	3,538

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 and nine months ended March 31:

	For the three months ended March 31,				For the nine months ended March 31,
(In thousands)	2018		2017		2018		2017
Interest income that would have been recorded if loans had been performing in accordance with original terms	$	45	$	50	$	182	$	186
Interest income that was recorded on nonaccrual loans		30		34		95		88

Impaired Loans by Loan Portfolio Class

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

	As of March 31, 2018						For the three months ended March 31, 2018				For the nine months ended March 31, 2018
(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	$	803	$	803	$	-	$	800	$	7	$	803	$	22
Home equity		181		181		-		181		-		182		-
Commercial loans		353		353		-		355		-		320		-
Impaired loans with no allowance		1,337		1,337		-		1,336		7		1,305		22

With an allowance recorded:
Residential real estate		1,930		1,930		359		1,797		14		1,667		40
Commercial real estate		397		397		80		401		-		416		-
Commercial construction		176		176		27		176		-		176		-
Home equity		323		323		61		323		3		324		11
Impaired loans with allowance		2,826		2,826		527		2,697		17		2,583		51

Total impaired:
Residential real estate		1,930		1,930		359		1,797		14		1,667		40
Commercial real estate		1,200		1,200		80		1,201		7		1,219		22
Commercial construction		176		176		27		176		-		176		-
Home equity		504		504		61		504		3		506		11
Commercial loans		353		353		-		355		-		320		-
Total impaired loans	$	4,163	$	4,163	$	527	$	4,033	$	24	$	3,888	$	73

	As of June 30, 2017						For the three months ended March 31, 2017				For the nine months ended March 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:
Residential real estate	$	-	$	-	$	-	$	171	$	-	$	235	$	-
Commercial real estate		809		809		-		423		11		755		25
Home equity		186		186		-		64		7		24		7
Commercial loans		186		186		-		192		3		86		4
Impaired loans with no allowance		1,181		1,181		-		850		21		1,100		36

With an allowance recorded:
Residential real estate		1,455		1,455		278		1,268		15		1,250		39
Commercial real estate		440		440		135		1,440		12		864		23
Commercial construction		176		176		23		-		-		-		-
Commercial loans		-		-		-		-		-		55		2
Impaired loans with allowance		2,071		2,071		436		2,708		27		2,169		64

Total impaired:
Residential real estate		1,455		1,455		278		1,439		15		1,485		39
Commercial real estate		1,249		1,249		135		1,863		23		1,619		48
Commercial construction		176		176		23		-		-		-		-
Home equity		186		186		-		64		7		24		7
Commercial loans		186		186		-		192		3		141		6
Total impaired loans	$	3,252	$	3,252	$	436	$	3,558	$	48	$	3,269	$	100

Loans Modified as Troubled Debt Restructuring

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 three months ended March 31, 2018
Residential		1	$	184	$	184	$	184

For the nine months ended March 31, 2018
Residential		1	$	184	$	184	$	184
Home equity		1		325		325		323

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 March 31, 2018
(In thousands)	Balance at December 31, 2017		Charge-offs		Recoveries		Provision			Balance at March 31, 2018
Residential real estate	$	2,099	$	25	$	-	$	5		$	2,079
Residential construction and land		86		-		-		8			94
Multi-family		95		-		-		67			162
Commercial real estate		5,904		-		-		52			5,956
Commercial construction		603		-		-		136			739
Home equity		312		-		-		-			312
Consumer installment		252		79		29		(14	)		188
Commercial loans		2,001		-		-		(26	)		1,975
Unallocated		-		-		-		117			117
Total	$	11,352	$	104	$	29	$	345		$	11,622

	Activity for the nine months ended March 31, 2018
(In thousands)	Balance at June 30, 2017		Charge-offs		Recoveries		Provision			Balance at March 31, 2018
Residential real estate	$	2,289	$	96	$	-	$	(114	)	$	2,079
Residential construction and land		89		-		-		5			94
Multi-family		43		-		-		119			162
Commercial real estate		5,589		-		-		367			5,956
Commercial construction		687		-		-		52			739
Home equity		234		-		-		78			312
Consumer installment		231		256		65		148			188
Commercial loans		1,680		157		-		452			1,975
Unallocated		180		-		-		(63	)		117
Total	$	11,022	$	509	$	65	$	1,044		$	11,622

	Allowance for Loan Losses				Loans Receivable
	Ending Balance At March 31, 2018 Impairment Analysis				Ending Balance At March 31, 2018 Impairment Analysis
(In thousands)	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
Residential real estate	$	359	$	1,720	$	1,930	$	251,415
Residential construction and land		-		94		-		8,153
Multi-family		-		162		-		14,201
Commercial real estate		80		5,876		1,200		278,276
Commercial construction		27		712		176		30,319
Home equity		61		251		504		20,786
Consumer installment		-		188		-		4,863
Commercial loans		-		1,975		353		77,194
Unallocated		-		117		-		-
Total	$	527	$	11,095	$	4,163	$	685,207

	Activity for the three months ended March 31, 2017
(In thousands)	Balance at December 31, 2016		Charge-offs		Recoveries		Provision			Balance at March 31, 2017
Residential real estate	$	2,234	$	-	$	-	$	29		$	2,263
Residential construction and land		63		-		-		15			78
Multi-family		18		-		-		16			34
Commercial real estate		5,365		-		-		141			5,506
Commercial construction		603		-		-		45			648
Home equity		257		-		-		(30	)		227
Consumer installment		224		68		25		(17	)		164
Commercial loans		1,513		-		-		58			1,571
Unallocated		144		-		-		86			230
Total	$	10,421	$	68	$	25	$	343		$	10,721

	Activity for the nine months ended March 31, 2017
(In thousands)	Balance at June 30, 2016		Charge-offs		Recoveries		Provision			Balance at March 31, 2017
Residential real estate	$	2,396	$	90	$	-	$	(43	)	$	2,263
Residential construction and land		75		-		-		3			78
Multi-family		22		-		-		12			34
Commercial real estate		4,541		-		-		965			5,506
Commercial construction		502		-		-		146			648
Home equity		309		-		-		(82	)		227
Consumer installment		228		209		60		85			164
Commercial loans		1,412		-		3		156			1,571
Unallocated		-		-		-		230			230
Total	$	9,485	$	299	$	63	$	1,472		$	10,721

	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 March 31, 2018 and June 30, 2017:

(in thousands)	March 31, 2018		June 30, 2017
Residential real estate	$	208	$	-
Commercial real estate		-		799
Total foreclosed real estate	$	208	$	799