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Loans and Allowance for Loan Losses
3 Months Ended
Sep. 30, 2022
Loans and Allowance for Loan Losses [Abstract]  
Loans and Allowance for Loan Losses
(5)          Loans and Allowance for Loan Losses

Loan segments and classes at September 30, 2022 and June 30, 2022 are summarized as follows:

(In thousands)
 
September 30, 2022
   
June 30, 2022
 
Residential real estate:
           
Residential real estate
 
$
368,142
   
$
360,824
 
Residential construction and land
   
18,226
     
15,298
 
Multi-family
   
67,088
     
63,822
 
Commercial real estate:
               
Commercial real estate
   
677,622
     
595,635
 
Commercial construction
   
81,599
     
83,748
 
Consumer loan:
               
Home equity
   
19,520
     
17,877
 
Consumer installment
   
4,546
     
4,512
 
Commercial loans
   
113,186
     
110,271
 
Total gross loans
   
1,349,929
     
1,251,987
 
Allowance for loan losses
   
(22,147
)
   
(22,761
)
Deferred fees and cost, net
   
69
     
129
 
Loans receivable, net
 
$
1,327,851
   
$
1,229,355
 

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 Company 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.”

When the Company 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 Company identifies problem loans as being impaired, it is required to evaluate whether the Company 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 Company 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 Company’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 Company reviews its portfolio quarterly to determine whether any assets require classification in accordance with applicable regulations.

The Company 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.

Residential mortgage loans, including home equity loans, which are collateralized by residences are generally made in amounts up to 85.0% of the appraised value of the property.  In the event of default by the borrower the Company will acquire and liquidate the underlying collateral.  By originating the loan at a loan-to-value ratio of 85.0% or less, the Company 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 Company does not hold the first mortgage.  The Company 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 Company completes inspections during the construction phase prior to any disbursements.  The Company 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 Company 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. The Company has 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 Company 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 September 30, 2022 are shown below.

(In thousands)
 
Performing
   
Special
Mention
   
Substandard
   
Total
 
Residential real estate
 
$
362,984
   
$
25
   
$
5,133
   
$
368,142
 
Residential construction and land
   
18,226
     
-
     
-
     
18,226
 
Multi-family
   
66,998
     
90
     
-
     
67,088
 
Commercial real estate
   
642,999
     
8,758
     
25,865
     
677,622
 
Commercial construction
   
81,599
     
-
     
-
     
81,599
 
Home equity
   
19,013
     
-
     
507
     
19,520
 
Consumer installment
   
4,536
     
-
     
10
     
4,546
 
Commercial loans
   
108,033
     
579
     
4,574
     
113,186
 
Total gross loans
 
$
1,304,388
   
$
9,452
   
$
36,089
   
$
1,349,929
 

Loan balances by internal credit quality indicator at June 30, 2022 are shown below.

(In thousands)
 
Performing
   
Special
Mention
   
Substandard
   
Total
 
Residential real estate
 
$
355,474
   
$
28
   
$
5,322
   
$
360,824
 
Residential construction and land
   
15,297
     
-
     
1
     
15,298
 
Multi-family
   
63,730
     
92
     
-
     
63,822
 
Commercial real estate
   
555,451
     
13,777
     
26,407
     
595,635
 
Commercial construction
   
83,748
     
-
     
-
     
83,748
 
Home equity
   
17,369
     
-
     
508
     
17,877
 
Consumer installment
   
4,500
     
-
     
12
     
4,512
 
Commercial loans
   
104,364
     
996
     
4,911
     
110,271
 
Total gross loans
 
$
1,199,933
   
$
14,893
   
$
37,161
   
$
1,251,987
 

The Company had no loans classified doubtful or loss at September 30, 2022 or June 30, 2022.  During the quarter ended September 30, 2022, the Company upgraded commercial real estate loans and commercial loans from special mention to pass, due to improvements in borrower cash flows and improving financial performance.  In total there were 10 commercial real estate loans and 3 commercial loans that have been upgraded to pass from special mention. There were also loan payoffs during the quarter ended September 30, 2022, comprised of 1 commercial real estate loan and 2 commercial loans that were classified as substandard. This was offset by 5 commercial real estate loans downgraded to substandard and special mention during the current quarter. At September 30, 2022, these loans were all performing. Management continues to monitor these loan relationships 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. Loans on nonaccrual status totaled $5.4 million at September 30, 2022 of which $480,000 were in the process of foreclosure. At September 30, 2022, there were four residential loans totaling $378,000 and one commercial real estate loan for $102,000 in the process of foreclosure. Included in nonaccrual loans were $4.7 million of loans which were less than 90 days past due at September 30, 2022, 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 $1.2 million of loans which were making payments pursuant to forbearance agreements. Under the forbearance agreements, the customers have made arrangements with the Bank to bring the loans current over a specified period of time (resulting in an insignificant delay in repayment).  During this term of the forbearance agreement, the Bank has agreed not to continue foreclosure proceedings. Loans on nonaccrual status totaled $6.3 million at June 30, 2022 of which $528,000 were in the process of foreclosure. At June 30, 2022, there were three residential loans in the process of foreclosure totaling $426,000 and one commercial real estate loan for $102,000 in the process of foreclosure. Included in nonaccrual loans were $4.4 million of loans which were less than 90 days past due at June 30, 2022, but have a recent history of delinquency greater than 90 days past due. The decrease in nonperforming loans during the period was primarily due to $543,000 in loan repayments, $134,000 in loans returning to performing status, $7,000 in charge-offs, and $286,000 in principal payments received, partially offset by $83,000 of loans placed into nonperforming status.

The following table sets forth information regarding delinquent and/or nonaccrual loans at September 30, 2022:

(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
 
$
-
   
$
1,680
   
$
389
   
$
2,069
   
$
366,073
   
$
368,142
   
$
2,733
 
Residential construction and land
   
-
     
-
     
-
     
-
     
18,226
     
18,226
     
-
 
Multi-family
   
-
     
-
     
-
     
-
     
67,088
     
67,088
     
-
 
Commercial real estate
   
-
     
90
     
123
     
213
     
677,409
     
677,622
     
796
 
Commercial construction
   
-
     
-
     
-
     
-
     
81,599
     
81,599
     
-
 
Home equity
   
48
     
39
     
140
     
227
     
19,293
     
19,520
     
187
 
Consumer installment
   
30
     
1
     
-
     
31
     
4,515
     
4,546
     
-
 
Commercial loans
   
-
     
94
     
34
     
128
     
113,058
     
113,186
     
1,715
 
Total gross loans
 
$
78
   
$
1,904
   
$
686
   
$
2,668
   
$
1,347,261
   
$
1,349,929
   
$
5,431
 

The following table sets forth information regarding delinquent and/or nonaccrual loans at June 30, 2022:

(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
 
$
66
   
$
1,676
   
$
592
   
$
2,334
   
$
358,490
   
$
360,824
   
$
2,948
 
Residential construction and land
   
-
     
1
     
-
     
1
     
15,297
     
15,298
     
1
 
Multi-family
   
-
     
-
     
-
     
-
     
63,822
     
63,822
     
-
 
Commercial real estate
   
-
     
385
     
1,147
     
1,532
     
594,103
     
595,635
     
1,269
 
Commercial construction
   
-
     
-
     
-
     
-
     
83,748
     
83,748
     
-
 
Home equity
   
3
     
-
     
179
     
182
     
17,695
     
17,877
     
188
 
Consumer installment
   
22
     
17
     
-
     
39
     
4,473
     
4,512
     
7
 
Commercial loans
   
-
     
28
     
19
     
47
     
110,224
     
110,271
     
1,904
 
Total gross loans
 
$
91
   
$
2,107
   
$
1,937
   
$
4,135
   
$
1,247,852
   
$
1,251,987
   
$
6,317
 

The Company had no accruing loans delinquent 90 days or more at September 30, 2022 and June 30, 2022.  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.

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 Company 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 or nonaccrual loans that are over $250 thousand and all trouble debt restructured loans are reviewed individually and considered impaired if it is probable that the Company 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 Company’s loans, including most nonaccrual loans, are small homogeneous 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 September 30, 2022
   
For the three months ended
September 30, 2022
 
(In thousands)
 
Recorded
Investment
   
Unpaid
Principal
   
Related
Allowance
   
Average
Recorded
Investment
   
Interest
Income Recognized
 
With no related allowance recorded:
                       
Residential real estate
 
$
1,004
   
$
1,004
   
$
-
   
$
986
   
$
9
 
Commercial real estate
   
60
     
60
     
-
     
63
     
2
 
Home equity
   
128
     
128
     
-
     
128
     
-
 
Consumer installment     5       5       -       5       -  
Commercial loans
   
343
     
343
     
-
     
344
     
4
 
Total impaired loans with no allowance
   
1,540
     
1,540
     
-
     
1,526
     
15
 
                                         
With an allowance recorded:
                                       
Residential real estate
   
1,932
     
1,932
     
578
     
1,939
     
9
 
Commercial real estate     3,214       3,214       1,070       3,229       44  
Commercial construction
   
102
     
102
     
1
     
102
     
-
 
Home equity
   
320
     
320
     
5
     
320
     
4
 
Commercial loans
   
2,926
     
2,926
     
993
     
3,008
     
58
 
Total impaired loans with allowance
   
8,494
     
8,494
     
2,647
     
8,598
     
115
 
                                         
Total impaired:
                                       
Residential real estate
   
2,936
     
2,936
     
578
     
2,925
     
18
 
Commercial real estate
   
3,274
     
3,274
     
1,070
     
3,292
     
46
 
Commercial construction
   
102
     
102
     
1
     
102
     
-
 
Home equity
   
448
     
448
     
5
     
448
     
4
 
Consumer installment     5       5       -       5       -  
Commercial loans
   
3,269
     
3,269
     
993
     
3,352
     
62
 
Total impaired loans
 
$
10,034
   
$
10,034
   
$
2,647
   
$
10,124
   
$
130
 

   
As of June 30, 2022
   
For the three months ended
September 30, 2021
 
(In thousands)
 
Recorded
Investment
   
Unpaid
Principal
   
Related
Allowance
   
Average
Recorded
Investment
   
Interest
Income Recognized
 
With no related allowance recorded:
           
Residential real estate
 
$
990
   
$
990
   
$
-
   
$
221
   
$
-
 
Commercial real estate
   
67
     
67
     
-
     
445
     
3
 
Home equity
   
128
     
128
     
-
     
128
     
-
 
Consumer installment
    5       5       -       -       -  
Commercial loans
   
346
     
346
     
-
     
98
     
-
 
Impaired loans with no allowance
   
1,536
     
1,536
     
-
     
892
    $
3
 
                                       
With an allowance recorded:
                                       
Residential real estate
   
1,953
     
1,953
     
588
     
718
     
5
 
Commercial real estate
   
3,698
     
3,698
     
1,118
     
780
     
10
 
Commercial construction
   
102
     
102
     
1
     
102
     
-
 
Home equity
   
320
     
320
     
44
     
321
     
3
 
Commercial Loans
   
3,162
     
3,162
     
596
     
3,228
     
40
 
Impaired loans with allowance
   
9,235
     
9,235
     
2,347
     
5,149
     
58
 
                                         
Total impaired:
                                       
Residential real estate
   
2,943
     
2,943
     
588
     
939
     
5
 
Commercial real estate
   
3,765
     
3,765
     
1,118
     
1,225
     
13
 
Commercial construction
   
102
     
102
     
1
     
102
     
-
 
Home equity
   
448
     
448
     
44
     
449
     
3
 
Consumer installment     5       5       -       -       -  
Commercial loans
   
3,508
     
3,508
     
596
     
3,326
     
40
 
Total impaired loans
 
$
10,771
   
$
10,771
   
$
2,347
   
$
6,041
   
$
61
 


The table below details 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 three months ended September 30,2022
                       
Residential real estate
    2
   
$
778
   
$
778
    $ 778
 
Commercial loan
    1
    $
379
    $
379
    $
379
 
                                 
For the year ended June 30,2022                                
Consumer Installment
    1
    $
5
    $
5
    $
5
 

There were no loans that had been modified as a troubled debt restructuring during the three months ended September 30, 2021. There were no loans that had been modified as a troubled debt restructuring during the twelve months prior to June 30, 2022 or 2021, which have subsequently defaulted during the three months ended September 30, 2022 or 2021.

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 Company’s allowance for loan losses.  Such agencies may require the Company to recognize additions to the allowance based on their judgment about information available to them at the time of their examination. The Company disaggregates its loan portfolio as noted in the below allowance for loan losses tables to evaluate for impairment collectively based on historical loss experience.  The Company evaluates nonaccrual loans that are over $250 thousand and all trouble debt restructured loans individually for impairment, if it is probable that the Company will not be able to collect scheduled payments of principal and interest when due, according to the contractual terms of the loan agreements. Loans that are guaranteed, such as SBA loans, are excluded from the homogeneous pool of loans and no allowance is allocated to this segment of the portfolio.  The measurement of impaired loans is generally based on the fair value of the underlying collateral.  The Company 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 Company 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 three months ended September 30, 2022
 
(In thousands)
 
Balance at
June 30,
 2022
   
Charge-offs
   
Recoveries
   
Provision
   
Balance at
September 30,
2022
 
Residential real estate
 
$
2,373
   
$
-
   
$
3
   
$
95
   
$
2,471
 
Residential construction and land
   
141
     
-
     
-
     
36
     
177
 
Multi-family
   
119
     
-
     
-
     
40
     
159
 
Commercial real estate
   
16,221
     
-
     
-
     
(829
)
   
15,392
 
Commercial construction
   
1,114
     
-
     
-
     
(70
)
   
1,044
 
Home equity
   
89
     
-
     
-
     
(45
)
   
44
 
Consumer installment
   
349
     
167
     
46
     
46
     
274
 
Commercial loans
   
2,355
     
4
     
7
     
228
     
2,586
 
Total
 
$
22,761
   
$
171
   
$
56
   
$
(499
)
 
$
22,147
 

   
Allowance for Loan Losses
   
Loans Receivable
 
   
Ending Balance At September 30, 2022
Impairment Analysis
   
Ending Balance At September 30, 2022
Impairment Analysis
 
(In thousands)
 
Individually
Evaluated
   
Collectively
Evaluated
   
Individually
Evaluated
   
Collectively
Evaluated
 
Residential real estate
 
$
578
   
$
1,893
   
$
2,936
   
$
365,206
 
Residential construction and land
   
-
     
177
     
-
     
18,226
 
Multi-family
   
-
     
159
     
-
     
67,088
 
Commercial real estate
   
1,070
     
14,322
     
3,274
     
674,348
 
Commercial construction
   
1
     
1,043
     
102
     
81,497
 
Home equity
   
5
     
39
     
448
     
19,072
 
Consumer installment
   
-
     
274
     
5
     
4,541
 
Commercial loans
   
993
     
1,593
     
3,269
     
109,917
 
Total
 
$
2,647
   
$
19,500
   
$
10,034
   
$
1,339,895
 

   
Activity for the three months ended September 30, 2021
 
(In thousands)
 
Balance at June
30, 2021
   
Charge-offs
   
Recoveries
   
Provision
   
Balance at
September 30,
2021
 
Residential real estate
 
$
2,012
   
$
-
   
$
-
   
$
(15
)
 
$
1,997
 
Residential construction and land
   
106
     
-
     
-
     
14
     
120
 
Multi-family
   
186
     
-
     
-
     
(86
)
   
100
 
Commercial real estate
   
13,049
     
-
     
-
     
1,249
     
14,298
 
Commercial construction
   
1,535
     
-
     
-
     
(337
)
   
1,198
 
Home equity
   
165
     
-
     
-
     
(25
)
   
140
 
Consumer installment
   
267
     
104
     
37
     
90
     
290
 
Commercial loans
   
2,348
     
97
     
1
     
98
     
2,350
 
Total
 
$
19,668
   
$
201
   
$
38
   
$
988
   
$
20,493
 


   
Allowance for Loan Losses
   
Loans Receivable
 
   
Ending Balance June 30, 2022
Impairment Analysis
   
Ending Balance June 30, 2022
Impairment Analysis
 
(In thousands)
 
Individually
Evaluated
   
Collectively
Evaluated
   
Individually
Evaluated
   
Collectively
Evaluated
 
Residential real estate
 
$
588
   
$
1,785
   
$
2,943
   
$
357,881
 
Residential construction and land
   
-
     
141
     
-
     
15,298
 
Multi-family
   
-
     
119
     
-
     
63,822
 
Commercial real estate
   
1,118
     
15,103
     
3,765
     
591,870
 
Commercial construction
   
1
     
1,113
     
102
     
83,646
 
Home equity
   
44
     
45
     
448
     
17,429
 
Consumer installment
   
-
     
349
     
5
     
4,507
 
Commercial loans
   
596
     
1,759
     
3,508
     
106,763
 
Total
 
$
2,347
   
$
20,414
   
$
10,771
   
$
1,241,216
 

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:

(in thousands)
 
September 30, 2022
   
June 30, 2022
 
Residential real estate
 
$
-
   
$
68
 
Total foreclosed real estate
 
$
-
   
$
68