(5)	Loans and Allowance for Loan Losses

Loan segments and classes at March 31, 2020 and June 30, 2019 are summarized as follows:

(In thousands)	March 31, 2020			June 30, 2019
Residential real estate:
Residential real estate	$	277,891		$	267,802
Residential construction and land		9,097			7,462
Multi-family		25,370			24,592
Commercial real estate:
Commercial real estate		374,155			329,668
Commercial construction		70,348			36,361
Consumer loan:
Home equity		22,179			23,185
Consumer installment		5,280			5,481
Commercial loans		113,641			103,554
Total gross loans		897,961			798,105
Allowance for loan losses		(15,205	)		(13,200	)
Unearned origination fees and costs, net		979			833
Loans receivable, net	$	883,735		$	785,738

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 at March 31, 2020 are shown below.

(In thousands)	Performing		Watch		Special Mention		Substandard		Total
Residential real estate	$	272,959	$	1,122	$	1,119	$	2,691	$	277,891
Residential construction and land		9,097		-		-		-		9,097
Multi-family		23,600		-		1,643		127		25,370
Commercial real estate		360,942		49		10,158		3,006		374,155
Commercial construction		65,286		-		4,960		102		70,348
Home equity		21,509		18		25		627		22,179
Consumer installment		5,233		47		-		-		5,280
Commercial loans		110,787		172		2,377		305		113,641
Total gross loans	$	869,413	$	1,408	$	20,282	$	6,858	$	897,961

Loan balances by internal credit quality indicator at 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

The Company had no loans classified doubtful or loss at March 31, 2020 or June 30, 2019. During the nine months ended March 31, 2020 the Company downgraded a construction loan to special mention as a result of project cost overruns and several delinquent payments. Several other commercial real estate and commercial loan relationships have been downgraded to special mention during the nine months ended March 31, 2020 due to a deterioration in borrower cash flows. At March 31, 2020, these loans were all performing. Management continues to monitor this loan relationship closely.

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 March 31, 2020 and June 30, 2019. Loans on nonaccrual status totaled $3.9 million at March 31, 2020 of which $1.3 million were in the process of foreclosure. At March 31, 2020, there were eight residential loans in the process of foreclosure totaling $1.0 million. Included in nonaccrual loans were $1.6 million of loans which were less than 90 days past due at March 31, 2020, 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. 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.

The following table sets forth information regarding delinquent and/or nonaccrual loans at March 31, 2020:

(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	$	2,574	$	867	$	1,556	$	4,997	$	272,894	$	277,891	$	2,438
Residential construction and land		-		-		-		-		9,097		9,097		-
Multi-family		-		30		127		157		25,213		25,370		127
Commercial real estate		323		73		347		743		373,412		374,155		765
Commercial construction		-		-		-		-		70,348		70,348		-
Home equity		124		18		128		270		21,909		22,179		305
Consumer installment		73		47		-		120		5,160		5,280		-
Commercial loans		851		193		177		1,221		112,420		113,641		250
Total gross loans	$	3,945	$	1,228	$	2,335	$	7,508	$	890,453	$	897,961	$	3,885

The following table sets forth information regarding delinquent and/or nonaccrual loans at 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 Bank of Greene County had no accruing loans delinquent more than 90 days at March 31, 2020 or June 30, 2019, 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 nine months ended March 31:

	For the three months ended March 31,				For the nine months ended March 31,
(In thousands)	2020		2019		2020		2019
Interest income that would have been recorded if loans had been performing in accordance with original terms	$	64	$	31	$	218	$	160
Interest income that was recorded on nonaccrual loans		51		26		143		81

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:

	At March 31, 2020						For the three months ended March 31, 2020				For the nine months ended March 31, 2020
(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	$	1,044	$	1,044	$	-	$	702	$	11	$	645	$	52
Multi-family		127		127		-		42		-		14		-
Commercial real estate		351		351		-		362		1		549		13
Home equity		153		153		-		136		-		177		-
Commercial loans		150		150		-		163		-		134		1
Impaired loans with no allowance		1,825		1,825		-		1,405		12		1,519		66

With an allowance recorded:
Residential real estate		1,088		1,088		133		1,176		7		1,227		39
Multi-family		-		-		-		85		-		72		1
Commercial real estate		-		-		-		-		-		35		3
Commercial construction		102		102		13		102		-		102		-
Home equity		432		432		73		449		7		414		21
Commercial loans		178		178		22		165		5		151		9
Impaired loans with allowance		1,800		1,800		241		1,977		19		2,001		73

Total impaired:
Residential real estate		2,132		2,132		133		1,878		18		1,872		91
Multi-family		127		127		-		127		-		86		1
Commercial real estate		351		351		-		362		1		584		16
Commercial construction		102		102		13		102		-		102		-
Home equity		585		585		73		585		7		591		21
Commercial loans		328		328		22		328		5		285		10
Total impaired loans	$	3,625	$	3,625	$	241	$	3,382	$	31	$	3,520	$	139

	At June 30, 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	$	727	$	727	$	-	$	151	$	1	$	105	$	4
Commercial real estate		717		717		-		997		35		979		50
Commercial construction		-		-		-		68		-		23		-
Home equity		309		309		-		309		-		281		-
Commercial loans		141		141		-		148		-		153		-
Impaired loans with no allowance		1,894		1,894		-		1,673		36		1,541		54

With an allowance recorded:
Residential real estate		1,420		1,420		188		1,965		15		1,826		51
Commercial real estate		-		-		-		-		-		122		-
Commercial construction		102		102		2		59		-		137		-
Home equity		348		348		59		350		5		334		14
Commercial loans		130		130		13		131		1		58		1
Impaired loans with allowance		2,000		2,000		262		2,505		21		2,477		66

Total impaired:
Residential real estate		2,147		2,147		188		2,116		16		1,931		55
Commercial real estate		717		717		-		997		35		1,101		50
Commercial construction		102		102		2		127		-		160		-
Home equity		657		657		59		659		5		615		14
Commercial loans		271		271		13		279		1		211		1
Total impaired loans	$	3,894	$	3,894	$	262	$	4,178	$	57	$	4,018	$	120

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

(Dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Current Outstanding Recorded Investment
March 31, 2019
Commercial loans		1	$	127	$	131	$	131

There were no loans that have been modified as a troubled debt restructuring during the three and nine months ended March 31, 2020. There was one loan that had been modified as a troubled debt restructuring during the twelve months prior to June 30, 2019 which was charged off during the three and nine months ended March 31, 2020. There were no loans that had been modified during the twelve months prior to June 30, 2018 which have subsequently defaulted during the three and nine months ended March 31, 2019.

During the three months ended March 31, 2020, the novel coronavirus (“COVID-19”) had spread world-wide and the Federal and state governments have been diligently working to contain its spread. The result of these containment strategies has had an enormous impact on the economy and will have a negative impact on borrowers’ ability to make timely loan payments as many businesses are forced to temporarily shut down. The Federal Reserve System along with the other various regulatory agencies have issued joint guidance to financial institutions who are working with borrowers affected by the coronavirus. The Bank of Greene County is working with borrowers, instituting a loan deferment program whereby short-term deferral of payments (3-6 months) will be provided. As of May 6, 2020, we had received requests to modify 688 loans aggregating $196.1 million, primarily consisting of the deferral of principal and/or interest payments. Based on guidance provided by bank regulators on March 22, 2020 regarding deferrals granted due to COVID-19, we will not report these loans as delinquent and will continue to recognize interest income during the deferral period. These loans will be closely monitored to determine collectability and accrual and delinquency status will be updated as deemed appropriate.

Under Section 4013 of the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 modifications. A financial institution can then suspend the requirements under GAAP for loan modifications related to COVID-19 that would otherwise be categorized as a troubled debt restructuring (“TDR”), and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes. Financial institutions wishing to utilize this authority must make a policy election, which applies to any COVID-19 modification made between March 1, 2020 and the earlier of either December 31, 2020 or the 60th day after the end of the COVID-19 national emergency. Similarly, the Financial Accounting Standards Board has confirmed that short-term modifications made on a good-faith basis in response to COVID-19 to loan customers who were current prior to any relief are not TDRs. Lastly, prior to the enactment of the CARES Act, the banking regulatory agencies provided guidance as to how certain short-term modifications would not be considered TDRs, and have subsequently confirmed that such guidance could be applicable for loans that do not qualify for favorable accounting treatment under Section 4013 of the CARES Act. Based on this guidance, the Company does not believe that TDRs will significantly change as a result of the modifications granted.

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 commercial 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 Bank of Greene County recognizes that strategies put in place to assist borrowers through the COVID-19 pandemic may not be sufficient to fully mitigate the impact to borrowers and that it is likely that a portion of the loan portfolio will default and result in losses to the Bank of Greene County. As a result, the Bank of Greene County has increased its provision for loan losses during the three months ended March 31, 2020 by $500,000 to reserve for these losses. Much uncertainty remains regarding the duration of the containment strategies and the overall impact to the economy and to local businesses. Management is closely monitoring the changes within its economic environment, stress testing the loan portfolio under various scenarios, and adjusting the allowance for loan loss as necessary to remain adequately reserved. 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, 2020
(In thousands)	Balance at December 31, 2019		Charge-offs		Recoveries		Provision		Balance at March 31, 2020
Residential real estate	$	1,470	$	-	$	3	$	391	$	1,864
Residential construction and land		93		-		-		8		101
Multi-family		147		-		-		6		153
Commercial real estate		7,510		-		-		453		7,963
Commercial construction		1,467		-		-		355		1,822
Home equity		270		-		-		3		273
Consumer installment		366		111		33		12		300
Commercial loans		2,661		129		-		164		2,696
Unallocated		-		-		-		33		33
Total	$	13,984	$	240	$	36	$	1,425	$	15,205

	Activity for the nine months ended March 31, 2020
(In thousands)	Balance at June 30, 2019		Charge-offs		Recoveries		Provision			Balance at March 31, 2020
Residential real estate	$	2,026	$	101	$	13	$	(74	)	$	1,864
Residential construction and land		87		-		-		14			101
Multi-family		180		-		-		(27	)		153
Commercial real estate		7,110		-		-		853			7,963
Commercial construction		872		-		-		950			1,822
Home equity		314		-		-		(41	)		273
Consumer installment		250		359		83		326			300
Commercial loans		2,361		333		36		632			2,696
Unallocated		-		-		-		33			33
Total	$	13,200	$	793	$	132	$	2,666		$	15,205

	Allowance for Loan Losses				Loans Receivable
	Ending Balance At March 31, 2020 Impairment Analysis				Ending Balance At March 31, 2020 Impairment Analysis
(In thousands)	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
Residential real estate	$	133	$	1,731	$	2,132	$	275,759
Residential construction and land		-		101		-		9,097
Multi-family		-		153		127		25,243
Commercial real estate		-		7,963		351		373,804
Commercial construction		13		1,809		102		70,246
Home equity		73		200		585		21,594
Consumer installment		-		300		-		5,280
Commercial loans		22		2,674		328		113,313
Unallocated		-		33		-		-
Total	$	241	$	14,964	$	3,625	$	894,336

	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 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

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 March 31, 2020 and June 30, 2019:

(in thousands)	March 31, 2020		June 30, 2019
Residential real estate	$	-	$	53
Total foreclosed real estate	$	-	$	53