Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Mar. 31, 2019

Loans and Allowance for Loan Losses [Abstract]

Major Loan Segments and Classes

Loan segments and classes at March 31, 2019 and June 30, 2018 are summarized as follows:

(In thousands)	March 31, 2019			June 30, 2018
Residential real estate:
Residential real estate	$	268,292		$	255,848
Residential construction and land		6,780			9,951
Multi-family		22,131			14,961
Commercial real estate:
Commercial real estate		309,235			283,935
Commercial construction		41,486			39,366
Consumer loan:
Home equity		22,208			21,919
Consumer installment		5,213			5,017
Commercial loans		100,007			84,644
Total gross loans		775,352			715,641
Allowance for loan losses		(12,846	)		(12,024	)
Deferred fees and costs		779			814
Loans receivable, net	$	763,285		$	704,431

Loan Balances by Internal Credit Quality Indicator

Loan balances by internal credit quality indicator at March 31, 2019 are shown below.

(In thousands)	Performing		Watch		Special Mention		Substandard		Total
Residential real estate	$	265,319	$	532	$	86	$	2,355	$	268,292
Residential construction and land		6,780		-		-		-		6,780
Multi-family		20,143		-		1,910		78		22,131
Commercial real estate		299,267		619		8,273		1,076		309,235
Commercial construction		41,384		-		-		102		41,486
Home equity		21,432		-		-		776		22,208
Consumer installment		5,206		-		-		7		5,213
Commercial loans		99,481		-		443		83		100,007
Total gross loans	$	759,012	$	1,151	$	10,712	$	4,477	$	775,352

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 March 31, 2019:

(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	$	2,509	$	817	$	1,109	$	4,435	$	263,857	$	268,292	$	1,829
Residential construction and land		-		-		-		-		6,780		6,780		-
Multi-family		138		-		-		138		21,993		22,131		-
Commercial real estate		772		785		102		1,659		307,576		309,235		614
Commercial construction		-		-		-		-		41,486		41,486		-
Home equity		146		28		309		483		21,725		22,208		455
Consumer installment		34		-		7		41		5,172		5,213		7
Commercial loans		503		-		-		503		99,504		100,007		83
Total gross loans	$	4,102	$	1,630	$	1,527	$	7,259	$	768,093	$	775,352	$	2,988

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 nine months ended March 31:

	For the three months ended March 31,				For the nine months ended March 31,
(In thousands)	2019		2018		2019		2018
Interest income that would have been recorded if loans had been performing in accordance with original terms	$	31	$	45	$	160	$	182
Interest income that was recorded on nonaccrual loans		26		30		81		95

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, 2019						For the three months ended March 31, 2019				For the nine months ended March 31, 2019
(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	$	86	$	86	$	-	$	151	$	1	$	105	$	4
Commercial real estate		730		730		-		997		35		979		50
Commercial construction		102		102		-		68		-		23		-
Home equity		309		309		-		309		-		281		-
Commercial loans		145		145		-		148		-		153		-
Impaired loans with no allowance		1,372		1,372		-		1,673		36		1,541		54
With an allowance recorded:
Residential real estate		2,026		2,026		292		1,965		15		1,826		51
Commercial real estate		-		-		-		-		-		122		-
Commercial construction		-		-		-		59		-		137		-
Home equity		349		349		59		350		5		334		14
Commercial loans		131		131		41		131		1		58		1
Impaired loans with allowance		2,506		2,506		392		2,505		21		2,477		66
Total impaired:
Residential real estate		2,112		2,112		292		2,116		16		1,931		55
Commercial real estate		730		730		-		997		35		1,101		50
Commercial construction		102		102		-		127		-		160		-
Home equity		658		658		59		659		5		615		14
Commercial loans		276		276		41		279		1		211		1
Total impaired loans	$	3,878	$	3,878	$	392	$	4,178	$	57	$	4,018	$	120

	As of June 30, 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:
Residential real estate	$	22	$	22	$	-	$	-	$	-	$	-	$	-
Commercial real estate		799		799		-		800		7		803		22
Home equity		181		181		-		181		-		182		-
Commercial loans		347		347		-		355		-		320		-
Impaired loans with no allowance		1,349		1,349		-		1,336		7		1,305		22
With an allowance recorded:
Residential real estate		1,922		1,922		332		1,797		14		1,667		40
Commercial real estate		379		379		60		401		-		416		-
Commercial construction		176		176		29		176		-		176		-
Home equity		322		322		61		323		3		324		11
Impaired loans with allowance		2,799		2,799		482		2,697		17		2,583		51
Total impaired:
Residential real estate		1,944		1,944		332		1,797		14		1,667		40
Commercial real estate		1,178		1,178		60		1,201		7		1,219		22
Commercial construction		176		176		29		176		-		176		-
Home equity		503		503		61		504		3		506		11
Commercial loans		347		347		-		355		-		320		-
Total impaired loans	$	4,148	$	4,148	$	482	$	4,033	$	24	$	3,888	$	73

Loans Modified as Troubled Debt Restructuring

The table below details loans that have been modified as a troubled debt restructuring during the three and nine months ended March 31, 2019 or 2018.

(Dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Current Outstanding Recorded Investment
Nine months ended March 31, 2019
Commercial loans		1	$	127	$	131	$	131
Three and 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, 2019
(In thousands)	Balance at December 31, 2018		Charge-offs		Recoveries		Provision			Balance at March 31, 2019
Residential real estate	$	2,070	$	-	$	-	$	14		$	2,084
Residential construction and land		93		-		-		(13	)		80
Multi-family		180		-		-		(12	)		168
Commercial real estate		6,182		74		-		238			6,346
Commercial construction		876		-		-		117			993
Home equity		322		-		-		(18	)		304
Consumer installment		290		95		43		(28	)		210
Commercial loans		2,381		51		-		(49	)		2,281
Unallocated		279		-		-		101			380
Total	$	12,673	$	220	$	43	$	350		$	12,846

	Activity for the nine months ended March 31, 2019
(In thousands)	Balance at June 30, 2018		Charge-offs		Recoveries		Provision			Balance at March 31, 2019
Residential real estate	$	2,116	$	96	$	13	$	51		$	2,084
Residential construction and land		114		-		-		(34	)		80
Multi-family		162		-		-		6			168
Commercial real estate		5,979		74		-		441			6,346
Commercial construction		950		-		-		43			993
Home equity		317		-		-		(13	)		304
Consumer installment		224		284		103		167			210
Commercial loans		2,128		51		153		51			2,281
Unallocated		34		-		-		346			380
Total	$	12,024	$	505	$	269	$	1,058		$	12,846

	Allowance for Loan Losses				Loans Receivable
	Ending Balance At March 31, 2019 Impairment Analysis				Ending Balance At March 31, 2019 Impairment Analysis
(In thousands)	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
Residential real estate	$	292	$	1,792	$	2,112	$	266,180
Residential construction and land		-		80		-		6,780
Multi-family		-		168		-		22,131
Commercial real estate		-		6,346		730		308,505
Commercial construction		-		993		102		41,384
Home equity		59		245		658		21,550
Consumer installment		-		210		-		5,213
Commercial loans		41		2,240		276		99,731
Unallocated		-		380		-		-
Total	$	392	$	12,454	$	3,878	$	771,474

	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 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 March 31, 2019 and June 30, 2018:

(in thousands)	March 31, 2019		June 30, 2018
Residential real estate	$	54	$	119
Total foreclosed real estate	$	54	$	119