Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Mar. 31, 2020

Loans and Allowance for Loan Losses [Abstract]

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

Loan Balances by Internal Credit Quality Indicator

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

Delinquent and/or Nonaccrual Loans by Past Due Status

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

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)	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 Loans by Loan Portfolio Class

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

Loans Modified as Troubled Debt Restructuring

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

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, 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

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