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Loans
12 Months Ended
Jun. 30, 2019
Loans [Abstract]  
Loans
Note 4.  Loans

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

  
At June 30,
 
(In thousands)
 
2019
  
2018
 
Residential real estate:
      
Residential real estate
 
$
267,802
  
$
255,848
 
Residential construction and land
  
7,462
   
9,951
 
Multi-family
  
24,592
   
14,961
 
Commercial real estate:
        
Commercial real estate
  
329,668
   
283,935
 
Commercial construction
  
36,361
   
39,366
 
Consumer loan:
        
Home equity
  
23,185
   
21,919
 
Consumer installment
  
5,481
   
5,017
 
Commercial loans
  
103,554
   
84,644
 
Total gross loans
  
798,105
   
715,641
 
Allowance for loan losses
  
(13,200
)
  
(12,024
)
Deferred fees and costs
  
833
   
814
 
Loans receivable, net
 
$
785,738
  
$
704,431
 

At June 30, 2019 and 2018, loans to related parties including officers and directors were immaterial as a percentage of our loan portfolio.

Credit Quality Indicators

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 historically has been 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.  Over the past few years, The Bank of Greene County has shifted more focus on the origination of commercial loans including commercial real estate.  The Bank of Greene County has also formed relationships with other community banks within our region to participate in larger commercial loan relationships.  These types of loans are generally considered to be riskier due to the size and complexity of the loan relationship.  By entering into a participation agreement with the other bank, The Bank of Greene County can obtain the loan relationship while limiting its exposure to credit loss.  Management completes its due diligence in underwriting these loans and monitors the servicing of these loans.

Loan balances by internal credit quality indicator as of June 30, 2019 are shown below.

(In thousands)
 
Performing
  
Watch
  
Special Mention
  
Substandard
  
Total
 
Residential real estate
 
$
264,138
  
$
874
  
$
86
  
$
2,704
  
$
267,802
 
Residential construction and land
  
7,462
   
-
   
-
   
-
   
7,462
 
Multi-family
  
22,544
   
137
   
1,835
   
76
   
24,592
 
Commercial real estate
  
318,703
   
616
   
7,435
   
2,914
   
329,668
 
Commercial construction
  
36,259
   
-
   
-
   
102
   
36,361
 
Home equity
  
22,392
   
20
   
-
   
773
   
23,185
 
Consumer installment
  
5,461
   
14
   
-
   
6
   
5,481
 
Commercial loans
  
102,103
   
261
   
1,082
   
108
   
103,554
 
Total gross loans
 
$
779,062
  
$
1,922
  
$
10,438
  
$
6,683
  
$
798,105
 

Loan balances by internal credit quality indicator as of 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
 

The Company had no loans classified Doubtful or Loss at June 30, 2019 or 2018.

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.   Loans on nonaccrual status totaled $3.6 million at June 30, 2019 of which $1.6 million were in the process of foreclosure.  At June 30, 2019, there were 12 residential loans in the process of foreclosure totaling $1.5 million.  Included in nonaccrual loans were $1.8 million of loans which were less than 90 days past due at June 30, 2019, 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 $175,000 of loans which were making payments pursuant to forbearance agreements. Loans on nonaccrual status totaled $3.5 million at June 30, 2018 of which $1.9 million were in the process of foreclosure. At June 30, 2018, there were 11 residential loans in the process of foreclosure totaling $1.2 million. Included in nonaccrual loans were $1.3 million of loans which were less than 90 days past due at June 30, 2018, 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 as of June 30, 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
 
$
2,144
  
$
870
  
$
1,385
  
$
4,399
  
$
263,403
  
$
267,802
  
$
2,474
 
Residential construction and land
  
-
   
-
   
-
   
-
   
7,462
   
7,462
   
-
 
Multi-family
  
1
   
137
   
-
   
138
   
24,454
   
24,592
   
-
 
Commercial real estate
  
280
   
1,108
   
102
   
1,490
   
328,178
   
329,668
   
598
 
Commercial construction
  
-
   
-
   
-
   
-
   
36,361
   
36,361
   
-
 
Home equity
  
16
   
136
   
309
   
461
   
22,724
   
23,185
   
452
 
Consumer installment
  
32
   
14
   
6
   
52
   
5,429
   
5,481
   
6
 
Commercial loans
  
430
   
342
   
28
   
800
   
102,754
   
103,554
   
108
 
Total gross loans
 
$
2,903
  
$
2,607
  
$
1,830
  
$
7,340
  
$
790,765
  
$
798,105
  
$
3,638
 

The following table sets forth information regarding delinquent and/or nonaccrual loans as of 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
 

The Bank of Greene County had no accruing loans delinquent 90 days or more at June 30, 2019 and $62,000 at June 30, 2018.  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 borrowers have made arrangements with the Bank to bring the loans current within a specified time period and have made a series of payments as agreed.

The table below details additional information related to nonaccrual loans:

(In thousands)
 
2019
  
2018
 
Interest income that would have been recorded if loans had been performing in accordance with original terms
 
$
257
  
$
230
 
Interest income that was recorded on nonaccrual loans
  
146
   
125
 

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.

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

  
As of June 30, 2019
  
For the year ended
June 30, 2019
 
(In thousands)
 
Recorded
Investment
  
Unpaid
Principal
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest Income
Recognized
 
With no related allowance recorded:
                 
Residential real estate
 
$
727
  
$
727
  
$
-
  
$
170
  
$
20
 
Commercial real estate
  
717
   
717
   
-
   
915
   
57
 
Commercial Construction
  
-
   
-
   
-
   
34
   
-
 
Home equity
  
309
   
309
   
-
   
288
   
-
 
Commercial loans
  
141
   
141
   
-
   
150
   
-
 
Impaired loans with no allowance
  
1,894
   
1,894
   
-
   
1,557
   
77
 
                     
With an allowance recorded:
                    
Residential real estate
  
1,420
   
1,420
   
188
   
1,809
   
61
 
Commercial real estate
  
-
   
-
   
-
   
91
   
-
 
Commercial construction
  
102
   
102
   
2
   
111
   
-
 
Home equity
  
348
   
348
   
59
   
338
   
19
 
Commercial Loans
  
130
   
130
   
13
   
76
   
3
 
Impaired loans with allowance
  
2,000
   
2,000
   
262
   
2,425
   
83
 
                     
Total impaired:
                    
Residential real estate
  
2,147
   
2,147
   
188
   
1,979
   
81
 
Commercial real estate
  
717
   
717
   
-
   
1,006
   
57
 
Commercial construction
  
102
   
102
   
2
   
145
   
-
 
Home equity
  
657
   
657
   
59
   
626
   
19
 
Commercial loans
  
271
   
271
   
13
   
226
   
3
 
Total impaired loans
 
$
3,894
  
$
3,894
  
$
262
  
$
3,982
  
$
160
 

  
As of June 30, 2018
  
For the year ended June 30, 2018
 
(In thousands)
 
Recorded
Investment
  
Unpaid
Principal
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest Income
Recognized
 
With no related allowance recorded:
                 
Residential real estate
 
$
22
  
$
22
  
$
-
  
$
2
  
$
3
 
Commercial real estate
  
799
   
799
   
-
   
803
   
29
 
Home equity
  
181
   
181
   
-
   
182
   
-
 
Commercial loans
  
347
   
347
   
-
   
328
   
-
 
Impaired loans with no allowance
  
1,349
   
1,349
   
-
   
1,315
   
32
 
                     
With an allowance recorded:
                    
Residential real estate
  
1,922
   
1,922
   
332
   
1,731
   
52
 
Commercial real estate
  
379
   
379
   
60
   
409
   
-
 
Commercial construction
  
176
   
176
   
29
   
176
   
-
 
Home equity
  
322
   
322
   
61
   
324
   
16
 
Impaired loans with allowance
  
2,799
   
2,799
   
482
   
2,640
   
68
 
                     
Total impaired loans:
                    
Residential real estate
  
1,944
   
1,944
   
332
   
1,733
   
55
 
Commercial real estate
  
1,178
   
1,178
   
60
   
1,212
   
29
 
Commercial construction
  
176
   
176
   
29
   
176
   
-
 
Home equity
  
503
   
503
   
61
   
506
   
16
 
Commercial loans
  
347
   
347
   
-
   
328
   
-
 
Total impaired loans
 
$
4,148
  
$
4,148
  
$
482
  
$
3,955
  
$
100
 

The tables below detail 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 year ended June 30, 2019
            
Commercial loans
  
1
  
$
127
  
$
131
  
$
131
 
Residential
  
1
   
294
   
169
   
169
 

(Dollars in thousands)
 
Number of
Contracts
  
Pre-Modification
Outstanding
Recorded
Investment
  
Post-Modification
Outstanding
Recorded
Investment
  
Current outstanding
Recorded
Investment
 
For the year ended June 30, 2018
            
Residential
  
1
  
$
184
  
$
184
  
$
184
 
Home equity
  
1
   
325
   
325
   
322
 

There were two loans modified as a troubled debt restructuring during the year ended June 30, 2019.  During the year ended June 30, 2019, a commercial loan and residential loan were both modified to reduce the interest rate thereby reducing the monthly payments for the borrower.  The Company recognized a partial charge-off on this loan during the year ended June 30, 2019.  There were no loans that had been modified as a troubled debt restructuring during the twelve months prior to June 30, 2019 or 2018 which have subsequently defaulted during the twelve months ended June 30, 2019 or 2018, 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. Included within consumer installment loan charge-offs and recoveries are deposit accounts that have been overdrawn in excess of 60 days. With continued growth in the number of deposit accounts, charge-off activity within this category has also grown, as can be seen from the tables below. 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 allowance for loan losses is increased by a provision for loan losses (which results in a charge to expense) and recoveries of loans previously charged off and is reduced by charge-offs.

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

  
Activity for the year ended June 30, 2019
 
(In thousands)
 
Balance June 30,
2018
  
Charge-offs
  
Recoveries
  
Provision
  
Balance June 30,
2019
 
Residential real estate
 
$
2,116
  
$
287
  
$
13
  
$
184
  
$
2,026
 
Residential construction and land
  
114
   
-
   
-
   
(27
)
  
87
 
Multi-family
  
162
   
-
   
-
   
18
   
180
 
Commercial real estate
  
5,979
   
74
   
-
   
1,205
   
7,110
 
Commercial construction
  
950
   
-
   
-
   
(78
)
  
872
 
Home equity
  
317
   
-
   
-
   
(3
)
  
314
 
Consumer installment
  
224
   
374
   
137
   
263
   
250
 
Commercial loans
  
2,128
   
51
   
153
   
131
   
2,361
 
Unallocated
  
34
   
-
   
-
   
(34
)
  
-
 
Total
 
$
12,024
  
$
786
  
$
303
  
$
1,659
  
$
13,200
 

  
Activity for the year ended June 30, 2018
 
(In thousands)
 
Balance June 30,
2017
  
Charge-offs
  
Recoveries
  
Provision
  
Balance June 30,
2018
 
Residential real estate
 
$
2,289
  
$
141
  
$
-
  
$
(32
)
 
$
2,116
 
Residential construction and land
  
89
   
-
   
-
   
25
   
114
 
Multi-family
  
43
   
-
   
-
   
119
   
162
 
Commercial real estate
  
5,589
   
-
   
-
   
390
   
5,979
 
Commercial construction
  
687
   
-
   
-
   
263
   
950
 
Home equity
  
234
   
-
   
-
   
83
   
317
 
Consumer installment
  
231
   
318
   
85
   
226
   
224
 
Commercial loans
  
1,680
   
159
   
5
   
602
   
2,128
 
Unallocated
  
180
   
-
   
-
   
(146
)
  
34
 
Total
 
$
11,022
  
$
618
  
$
90
  
$
1,530
  
$
12,024
 

  
Allowance for Loan Losses
  
Loans Receivable
 
  
Ending Balance June 30, 2019
Impairment Analysis
  
Ending Balance June 30, 2019
Impairment Analysis
 
(In thousands)
 
Individually
Evaluated
  
Collectively
Evaluated
  
Individually
Evaluated
  
Collectively
Evaluated
 
Residential real estate
 
$
188
  
$
1,838
  
$
2,147
  
$
265,655
 
Residential construction and land
  
-
   
87
   
-
   
7,462
 
Multi-family
  
-
   
180
   
-
   
24,592
 
Commercial real estate
  
-
   
7,110
   
717
   
328,951
 
Commercial construction
  
2
   
870
   
102
   
36,259
 
Home equity
  
59
   
255
   
657
   
22,528
 
Consumer installment
  
-
   
250
   
-
   
5,481
 
Commercial loans
  
13
   
2,348
   
271
   
103,283
 
Unallocated
  
-
   
-
   
-
   
-
 
Total
 
$
262
  
$
12,938
  
$
3,894
  
$
794,211
 

  
Allowance for Loan Losses
  
Loans Receivable
 
  
Ending Balance June 30, 2018
Impairment Analysis
  
Ending Balance 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 (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 as of June 30, 2019 and 2018:

(in thousands)
 
2019
  
2018
 
Residential real estate
 
$
53
  
$
119
 
Total foreclosed real estate
 
$
53
  
$
119