Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Dec. 31, 2018

Loans and Allowance for Loan Losses [Abstract]

Major Loan Segments and Classes

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

(In thousands)	December 31, 2018			June 30, 2018
Residential real estate:
Residential real estate	$	268,463		$	255,848
Residential construction and land		7,875			9,951
Multi-family		22,626			14,961
Commercial real estate:
Commercial real estate		300,725			283,935
Commercial construction		35,255			39,366
Consumer loan:
Home equity		22,413			21,919
Consumer installment		5,344			5,017
Commercial loans		99,532			84,644
Total gross loans		762,233			715,641
Allowance for loan losses		(12,673	)		(12,024	)
Deferred fees and costs		810			814
Loans receivable, net	$	750,370		$	704,431

Loan Balances by Internal Credit Quality Indicator

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

(In thousands)	Performing		Watch		Special Mention		Substandard		Total
Residential real estate	$	265,419	$	586	$	87	$	2,371	$	268,463
Residential construction and land		7,875		-		-		-		7,875
Multi-family		20,420		140		1,985		81		22,626
Commercial real estate		289,948		766		8,516		1,495		300,725
Commercial construction		35,079		-		-		176		35,255
Home equity		21,535		-		-		878		22,413
Consumer installment		5,314		7		-		23		5,344
Commercial loans		98,285		153		509		585		99,532
Total gross loans	$	743,875	$	1,652	$	11,097	$	5,609	$	762,233

Loan balances by internal credit quality indicator at June 30, 2018 are shown below.

(In thousands)	Performing		Watch		Special Mention		Substandard		Total
Residential real estate	$	252,811	$	577	$	88	$	2,372	$	255,848
Residential construction and land		9,951		-		-		-		9,951
Multi-family		12,743		-		2,132		86		14,961
Commercial real estate		273,077		317		8,994		1,547		283,935
Commercial construction		39,190		-		-		176		39,366
Home equity		21,170		128		-		621		21,919
Consumer installment		4,969		30		-		18		5,017
Commercial loans		83,148		195		457		844		84,644
Total gross loans	$	697,059	$	1,247	$	11,671	$	5,664	$	715,641

Delinquent and/or Nonaccrual Loans by Past Due Status

The following table sets forth information regarding delinquent and/or nonaccrual loans at December 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	$	2,819	$	789	$	1,084	$	4,692	$	263,771	$	268,463	$	1,843
Residential construction and land		-		-		-		-		7,875		7,875		-
Multi-family		-		140		-		140		22,486		22,626		-
Commercial real estate		1,728		934		710		3,372		297,353		300,725		1,247
Commercial construction		-		-		-		-		35,255		35,255		-
Home equity		21		149		265		435		21,978		22,413		414
Consumer installment		51		7		15		73		5,271		5,344		23
Commercial loans		601		153		-		754		98,778		99,532		87
Total gross loans	$	5,220	$	2,172	$	2,074	$	9,466	$	752,767	$	762,233	$	3,614

The following table sets forth information regarding delinquent and/or nonaccrual loans at June 30, 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	$	1,617	$	458	$	1,211	$	3,286	$	252,562	$	255,848	$	1,778
Residential construction and land		-		-		-		-		9,951		9,951		-
Multi-family		-		-		-		-		14,961		14,961		-
Commercial real estate		1,568		487		568		2,623		281,312		283,935		1,147
Commercial construction		-		-		-		-		39,366		39,366		-
Home equity		38		128		299		465		21,454		21,919		298
Consumer installment		3		30		8		41		4,976		5,017		18
Commercial loans		250		195		182		627		84,017		84,644		276
Total gross loans	$	3,476	$	1,298	$	2,268	$	7,042	$	708,599	$	715,641	$	3,517

Nonaccrual Loans, Interest Income Data

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)	2018		2017		2018		2017
Interest income that would have been recorded if loans had been performing in accordance with original terms	$	58	$	59	$	129	$	137
Interest income that was recorded on nonaccrual loans		23		31		55		65

Impaired Loans by Loan Portfolio Class

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

	As of December 31, 2018						For the three months ended December 31, 2018				For the six months ended December 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:
Residential real estate	$	280	$	280	$	-	$	158	$	-	$	83	$	3
Commercial real estate		1,141		1,141		-		1,145		7		970		15
Home equity		309		309		-		309		-		266		-
Commercial loans		152		152		-		153		-		155		-
Impaired loans with no allowance		1,882		1,882		-		1,765		7		1,474		18
With an allowance recorded:
Residential real estate		1,570		1,570		221		1,614		13		1,757		36
Commercial real estate		-		-		-		-		-		182		-
Commercial construction		176		176		34		176		-		176		-
Home equity		351		351		59		321		5		327		9
Commercial loans		131		131		42		44		-		22		-
Impaired loans with allowance		2,228		2,228		356		2,155		18		2,464		45
Total impaired:
Residential real estate		1,850		1,850		221		1,772		13		1,840		39
Commercial real estate		1,141		1,141		-		1,145		7		1,152		15
Commercial construction		176		176		34		176		-		176		-
Home equity		660		660		59		630		5		593		9
Commercial loans		283		283		42		197		-		177		-
Total impaired loans	$	4,110	$	4,110	$	356	$	3,920	$	25	$	3,938	$	63

	As of June 30, 2018						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:
Residential real estate	$	22	$	22	$	-	$	-	$	-	$	-	$	-
Commercial real estate		799		799		-		803		7		805		15
Home equity		181		181		-		181		-		182		-
Commercial loans		347		347		-		361		-		303		-
Impaired loans with no allowance		1,349		1,349		-		1,345		7		1,290		15
With an allowance recorded:
Residential real estate		1,922		1,922		332		1,668		15		1,602		26
Commercial real estate		379		379		60		418		-		424		-
Commercial construction		176		176		29		176		-		176		-
Home equity		322		322		61		324		5		324		8
Impaired loans with allowance		2,799		2,799		482		2,586		20		2,526		34
Total impaired:
Residential real estate		1,944		1,944		332		1,668		15		1,602		26
Commercial real estate		1,178		1,178		60		1,221		7		1,229		15
Commercial construction		176		176		29		176		-		176		-
Home equity		503		503		61		505		5		506		8
Commercial loans		347		347		-		361		-		303		-
Total impaired loans	$	4,148	$	4,148	$	482	$	3,931	$	27	$	3,816	$	49

Loans Modified as Troubled Debt Restructuring

The table below details loans that have been modified as a troubled debt restructuring during the six months ended December 31, 2018 or 2017.

(Dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Current Outstanding Recorded Investment
December 31, 2018
Commercial loans		1	$	127	$	131	$	131
December 31, 2017
Home equity		1	$	325	$	325	$	324

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 December 31, 2018
(In thousands)	Balance at September 30, 2018		Charge-offs		Recoveries		Provision			Balance at December 31, 2018
Residential real estate	$	2,108	$	75	$	-	$	37		$	2,070
Residential construction and land		116		-		-		(23	)		93
Multi-family		171		-		-		9			180
Commercial real estate		6,023		-		-		159			6,182
Commercial construction		957		-		-		(81	)		876
Home equity		317		-		-		5			322
Consumer installment		229		89		22		128			290
Commercial loans		2,133		-		153		95			2,381
Unallocated		254		-		-		25			279
Total	$	12,308	$	164	$	175	$	354		$	12,673

	Activity for the six months ended December 31, 2018
(In thousands)	Balance at June 30, 2018		Charge-offs		Recoveries		Provision			Balance at December 31, 2018
Residential real estate	$	2,116	$	96	$	13	$	37		$	2,070
Residential construction and land		114		-		-		(21	)		93
Multi-family		162		-		-		18			180
Commercial real estate		5,979		-		-		203			6,182
Commercial construction		950		-		-		(74	)		876
Home equity		317		-		-		5			322
Consumer installment		224		188		59		195			290
Commercial loans		2,128		-		153		100			2,381
Unallocated		34		-		-		245			279
Total	$	12,024	$	284	$	225	$	708		$	12,673

	Allowance for Loan Losses				Loans Receivable
	Ending Balance At December 31, 2018 Impairment Analysis				Ending Balance At December 31, 2018 Impairment Analysis
(In thousands)	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
Residential real estate	$	221	$	1,849	$	1,850	$	266,613
Residential construction and land		-		93		-		7,875
Multi-family		-		180		-		22,626
Commercial real estate		-		6,182		1,141		299,584
Commercial construction		34		842		176		35,079
Home equity		59		263		660		21,753
Consumer installment		-		290		-		5,344
Commercial loans		42		2,339		283		99,249
Unallocated		-		279		-		-
Total	$	356	$	12,317	$	4,110	$	758,123

	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 June 30, 2018 Impairment Analysis				Ending Balance At June 30, 2018 Impairment Analysis
(In thousands)	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
Residential real estate	$	332	$	1,784	$	1,944	$	253,904
Residential construction and land		-		114		-		9,951
Multi-family		-		162		-		14,961
Commercial real estate		60		5,919		1,178		282,757
Commercial construction		29		921		176		39,190
Home equity		61		256		503		21,416
Consumer installment		-		224		-		5,017
Commercial loans		-		2,128		347		84,297
Unallocated		-		34		-		-
Total	$	482	$	11,542	$	4,148	$	711,493

Foreclosed Real Estate

The following table sets forth information regarding FRE at December 31, 2018 and June 30, 2018:

(in thousands)	December 31, 2018		June 30, 2018
Residential real estate	$	79	$	119
Total foreclosed real estate	$	79	$	119