(5) Loans and Allowance for Loan Losses

Loan segments and classes at September 30, 2020 and June 30, 2020 are summarized as follows:

(In thousands)	September 30, 2020			June 30, 2020
Residential real estate:
Residential real estate	$	289,502		$	279,332
Residential construction and land		9,777			11,847
Multi-family		26,241			25,104
Commercial real estate:
Commercial real estate		415,654			381,415
Commercial construction		71,206			74,920
Consumer loan:
Home equity		20,701			22,106
Consumer installment		5,180			4,817
Commercial loans		210,852			213,119
Total gross loans		1,049,113			1,012,660
Allowance for loan losses		(17,596	)		(16,391	)
Unearned origination fees and costs, net		(2,735	)		(2,747	)
Loans receivable, net	$	1,028,782		$	993,522

In early 2020, COVID-19 had spread world-wide and the Federal and state governments have been diligently working to contain the spread. The containment strategies implemented by local governments has had an enormous impact on the economy and may continue to have a negative impact on borrowers’ ability to make timely loan payments as many businesses are forced to temporarily shut down or operate with limited capacity. Management is monitoring and addressing the impact on the loan portfolio and working with borrowers.

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 85.0% of the appraised value of the property. 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 85.0% or less, 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. During the quarter ended September 30, 2020, the Company had outstanding $100.5 million in PPP loans which are unsecured commercial loans and are 100% guaranteed by the Small Business Administration.

Loan balances by internal credit quality indicator at September 30, 2020 are shown below.

(In thousands)	Performing		Watch		Special Mention		Substandard		Total
Residential real estate	$	285,478	$	615	$	82	$	3,327	$	289,502
Residential construction and land		9,777		-		-		-		9,777
Multi-family		24,480		-		1,641		120		26,241
Commercial real estate		398,526		-		13,075		4,053		415,654
Commercial construction		64,130		-		6,974		102		71,206
Home equity		20,127		-		-		574		20,701
Consumer installment		5,180		-		-		-		5,180
Commercial loans		201,883		24		3,722		5,223		210,852
Total gross loans	$	1,009,581	$	639	$	25,494	$	13,399	$	1,049,113

Loan balances by internal credit quality indicator at June 30, 2020 are shown below.

(In thousands)	Performing		Watch		Special Mention		Substandard		Total
Residential real estate	$	274,973	$	626	$	996	$	2,737	$	279,332
Residential construction and land		11,847		-		-		-		11,847
Multi-family		23,336		-		1,645		123		25,104
Commercial real estate		364,884		-		13,189		3,342		381,415
Commercial construction		67,844		-		6,974		102		74,920
Home equity		21,466		-		-		640		22,106
Consumer installment		4,792		25		-		-		4,817
Commercial loans		210,031		50		2,675		363		213,119
Total gross loans	$	979,173	$	701	$	25,479	$	7,307	$	1,012,660

The Company had no loans classified doubtful or loss at September 30, 2020 and June 30, 2020. Loans classified as substandard or special mention totaled $38.9 million at September 30, 2020, compared to $32.8 million at June 30, 2020, an increase of $6.1 million. The increase in classified loans was primarily in loans classified as substandard and was due primarily to a deterioration of borrowers’ cash flow in their most recent financial statements. These newly classified loans were all performing as of September 30, 2020.

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 September 30, 2020 and June 30, 2020. Loans on nonaccrual status totaled $4.3 million at September 30, 2020 of which $1.5 million were in the process of foreclosure. At September 30, 2020, there were 9 residential loans in the process of foreclosure totaling $1.2 million. Included in nonaccrual loans were $1.1 million of loans which were less than 90 days past due at September 30, 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 $4.1 million at June 30, 2020 of which $1.3 million were in the process of foreclosure. At June 30, 2020, there were eight residential loans in the process of foreclosure totaling $1.0 million. Included in nonaccrual loans were $1.4 million of loans which were less than 90 days past due at June 30, 2020, 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 September 30, 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	$	1,677 1,677	$	367	$	1,736	$	3,780	$	285,722	$	289,502	$	2,274
Residential construction and land		-		-		-		-		9,777		9,777		-
Multi-family		-		-		148		148		26,093		26,241		148
Commercial real estate		47		300		478		825		414,829		415,654		870
Commercial construction		-		-		-		-		71,206		71,206		-
Home equity		56		-		237		293		20,408		20,701		253
Consumer installment		61		-		-		61		5,119		5,180		-
Commercial loans		585		46		673		1,304		209,548		210,852		802
Total gross loans	$	2,426 2,426	$	713	$	3,272	$	6,411	$	1,042,702	$	1,049,113	$	4,347

The following table sets forth information regarding delinquent and/or nonaccrual loans at June 30, 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	$	871	$	345	$	1,691	$	2,907	$	276,425	$	279,332	$	2,513
Residential construction and land		-		-		-		-		11,847		11,847		-
Multi-family		-		-		151		151		24,953		25,104		151
Commercial real estate		393		189		374		956		380,459		381,415		781
Commercial construction		-		-		-		-		74,920		74,920		-
Home equity		29		-		238		267		21,839		22,106		319
Consumer installment		36		25		-		61		4,756		4,817		-
Commercial loans		48		72		245		365		212,754		213,119		313
Total gross loans	$	1,377	$	631	$	2,699	$	4,707	$	1,007,953	$	1,012,660	$	4,077

The Bank of Greene County had no accruing loans delinquent more than 90 days at September 30, 2020 or June 30, 2020, 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 months ended September 30:

(In thousands)	2020		2019
Interest income that would have been recorded if loans had been performing in accordance with original terms	$	135	$	101
Interest income that was recorded on nonaccrual loans		38		50

In order to assist borrowers through the COVID-19 pandemic, The Bank of Greene County has instituted a loan deferment program whereby short-term deferral of payments (3-6 months) were provided. Payment deferrals consisted of either principal deferrals or full payment deferrals. Based on guidance provided by bank regulators on March 22, 2020 regarding deferrals granted due to COVID-19, these have not been reported as delinquent and we will continue to recognize interest income during the deferral period. At September 30, 2020, there were no loans in nonaccrual that previously participated in this loan deferment program due to COVID-19.

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 September 30, 2020						For the three months ended September 30, 2020
(In thousands)	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	399	$	399	$	-	$	402	$	5
Multi-family		120		120		-		121		-
Commercial real estate		332		332		-		335		1
Home equity		128		128		-		128		-
Commercial loans		275		275		-		277		-
Total impaired loans with no allowance		1,254		1,254		-		1,263		6

With an allowance recorded:
Residential real estate		1,382		1,382		126		1,385		5
Commercial construction		102		102		15		102		-
Home equity		430		430		73		430		4
Total impaired loans with allowance		1,914		1,914		214		1,917		9

Total impaired:
Residential real estate		1,781		1,781		126		1,787		10
Multi-family		120		120		-		121		-
Commercial real estate		332		332		-		335		1
Commercial construction		102		102		15		102		-
Home equity		558		558		73		558		4
Commercial loans		275		275		-		277		-
Total impaired loans	$	3,168	$	3,168	$	214	$	3,180	$	15

	As of June 30, 2020						For the three months ended September 30, 2019
(In thousands)	Recorded Investment		Unpaid Principal		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Residential real estate	$	868	$	868	$	-	$	692	$	30
Multi-family		123		123		-		-		-
Commercial real estate		344		344		-		704		7
Home equity		128		128		-		266		-
Commercial loans		145		145		-		137		-
Impaired loans with no allowance		1,608		1,608		-		1,799		37

With an allowance recorded:
Residential real estate		995		995		127		1,087		24
Multi-family		-		-		-		-		-
Commercial real estate		-		-		-		-		-
Commercial construction		102		102		15		102		-
Home equity		431		431		73		330		5
Commercial Loans		134		134		13		130		1
Impaired loans with allowance		1,662		1,662		228		1,649		30

Total impaired:
Residential real estate		1,863		1,863		127		1,779		54
Multi-family		123		123		-		-		-
Commercial real estate		344		344		-		704		7
Commercial construction		102		102		15		102		-
Home equity		559		559		73		596		5
Commercial loans		279		279		13		267		1
Total impaired loans	$	3,270	$	3,270	$	228	$	3,448	$	67

There were no loans that have been modified as a troubled debt restructuring during the three months ended September 30, 2020 or 2019. There were no loans that had been modified as a troubled debt restructuring during the twelve months prior to June 30, 2020 or 2019 which have subsequently defaulted during the three months ended September 30, 2020 or 2019, respectively.

The Bank of Greene County continues working with borrowers through the current pandemic. During fiscal 2020, the Company instituted a loan deferment program whereby short-term deferral of payments (3-6 months) were provided. At September 30, 2020, the Company still had $67.4 million or 201 loans on payment deferral as a result of the pandemic, which is down from $193.5 million or 706 loans at June 30, 2020. Based on guidance provided by bank regulators on March 22, 2020 regarding deferrals granted due to COVID-19, we have not reported 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 Coronavirus Aid, Relief and Economic Security Act (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 for the three months ended September 30, 2020 to $1.2 million from $551,000 for the three months ended September 30, 2019. 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 September 30, 2020
(In thousands)	Balance June 30, 2020		Charge-offs		Recoveries		Provision			Balance September 30, 2020
Residential real estate	$	2,091	$	-	$	3	$	(631	)	$	1,463
Residential construction and land		141		-		-		(23	)		118
Multi-family		176		-		-		4			180
Commercial real estate		8,634		-		-		750			9,384
Commercial construction		2,053		-		-		(92	)		1,961
Home equity		295		-		-		(23	)		272
Consumer installment		197		61		20		194			350
Commercial loans		2,804		-		-		1,064			3,868
Total	$	16,391	$	61	$	23	$	1,243		$	17,596

	Allowance for Loan Losses				Loans Receivable
	Ending Balance At September 30, 2020 Impairment Analysis				Ending Balance At September 30, 2020 Impairment Analysis
(In thousands)	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
Residential real estate	$	126	$	1,337	$	1,781	$	287,721
Residential construction and land		-		118		-		9,777
Multi-family		-		180		120		26,121
Commercial real estate		-		9,384		332		415,322
Commercial construction		15		1,946		102		71,104
Home equity		73		199		558		20,143
Consumer installment		-		350		-		5,180
Commercial loans		-		3,868		275		210,577
Total	$	214	$	17,382	$	3,168	$	1,045,945

	Activity for the three months ended September 30, 2019
(In thousands)	Balance at June 30, 2019		Charge-offs		Recoveries		Provision			Balance at September 30, 2019
Residential real estate	$	2,026	$	53	$	-	$	(461	)	$	1,512
Residential construction and land		87		-		-		12			99
Multi-family		180		-		-		25			205
Commercial real estate		7,110		-		-		49			7,159
Commercial construction		872		-		-		419			1,291
Home equity		314		-		-		(7	)		307
Consumer installment		250		109		24		154			319
Commercial loans		2,361		199		30		360			2,552
Total	$	13,200	$	361	$	54	$	551		$	13,444

	Allowance for Loan Losses				Loans Receivable
	Ending Balance June 30, 2020 Impairment Analysis				Ending Balance June 30, 2020 Impairment Analysis
(In thousands)	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
Residential real estate	$	127	$	1,964	$	1,863	$	277,469
Residential construction and land		-		141		-		11,847
Multi-family		-		176		123		24,981
Commercial real estate		-		8,634		344		381,071
Commercial construction		15		2,038		102		74,818
Home equity		73		222		559		21,547
Consumer installment		-		197		-		4,817
Commercial loans		13		2,791		279		212,840
Total	$	228	$	16,163	$	3,270	$	1,009,390

Foreclosed real estate (FRE)

FRE consists of properties acquired through mortgage loan foreclosure proceedings or in full or partial satisfaction of loans. At September 30, 2020 and June 30, 2020, the Company had no FRE.