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Loans and Allowance for Credit Losses on Loans (Tables)
 3 Months Ended
Sep. 30, 2023
Loans and Allowance for Credit Losses on Loans [Abstract]  
Major Loan Segments and Classes

With the adoption of CECL, the Company’s revised loan segments at September 30, 2023 are as follows:

(In thousands)
  
September 30, 2023
  
Residential real estate
  
$
397,626
  
Commercial real estate
    
910,165
  
Home equity
    
25,467
  
Consumer
   
4,778
  
Commercial
   
110,304
  
Total gross loans(1)(2)
    
1,448,340
  
Allowance for credit losses on loans
    
(20,249
)
Loans receivable, net
  
$
1,428,091
  

(1)
Loan balances include net deferred fees/cost of $62,000 at September 30, 2023.
(2)
Loan balances exclude accrued interest receivable of $6.0 million at September 30, 2023, which is included in accrued interest receivable in the consolidated statement of financial condition.
Loan segments and classes at June 30, 2023 are summarized as follows:

(In thousands)
  
June 30, 2023
  
Residential real estate:
      
   Residential real estate
   $ 372,443  
   Residential construction and land
     19,072  
   Multi-family
     66,496  
Commercial real estate:
        
   Commercial real estate
     693,436  
   Commercial construction
     121,958  
Consumer loan:
        
   Home equity
     22,752  
   Consumer installment
     4,612  
Commercial loans
     108,022  
Total gross loans(1)
     1,408,791  
Allowance for loan losses
     (21,212 )
Deferred fees and cost, net
     75  
Loans receivable, net
   $ 1,387,654  


(1)
Loan balances exclude accrued interest receivable of $5.5 million at June 30, 2023, which is included in accrued interest receivable in the consolidated statement of financial condition.
Delinquent and/or Nonaccrual Loans by Past Due Status

The following table sets forth information regarding delinquent and/or nonaccrual loans at September 30, 2023:



(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
  
$
19
    
$
306
    
$
1,877
    
$
2,202
    
$
395,424
    
$
397,626
    
$
2,816
  
Commercial real estate
    
-
      
233
      
650
      
883
      
909,282
      
910,165
      
1,307
  
Home equity
    
43
      
-
      
13
      
56
      
25,411
      
25,467
      
52
  
Consumer
    
31
      
21
      
43
      
95
      
4,683
      
4,778
      
43
  
Commercial loans
    
-
      
1,237
      
19
      
1,256
      
109,048
      
110,304
      
1,256
  
Total gross loans
  
$
93
    
$
1,797
    
$
2,602
    
$
4,492
    
$
1,443,848
    
$
1,448,340
    
$
5,474
  
The following table sets forth information regarding delinquent and/or nonaccrual loans at June 30, 2023:

(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
  
$
-
    
$
504
    
$
1,604
    
$
2,108
    
$
370,335
    
$
372,443
    
$
2,747
  
Residential construction and land
    
-
      
-
      
-
      
-
      
19,072
      
19,072
      
-
  
Multi-family
    
-
      
-
      
-
      
-
      
66,496
      
66,496
      
-
  
Commercial real estate
    
-
      
235
      
652
      
887
      
692,549
      
693,436
      
1,318
  
Commercial construction
    
-
      
-
      
-
      
-
      
121,958
      
121,958
      
-
  
Home equity
    
48
      
-
      
13
      
61
      
22,691
      
22,752
      
54
  
Consumer installment
    
63
      
1
      
63
      
127
      
4,485
      
4,612
      
63
  
Commercial loans
    
-
      
-
      
19
      
19
      
108,003
      
108,022
      
1,276
  
Total gross loans
  
$
111
    
$
740
    
$
2,351
    
$
3,202
    
$
1,405,589
    
$
1,408,791
    
$
5,458
  
Loan Balances by Internal Credit Quality Indicator
The following tables illustrate the Company’s credit quality by loan class by vintage:

   
At September 30, 2023
  
(In thousands)
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Revolving
Loans Amortized
Cost Basis
    
Revolving
Loans
Converted
to Term
    
Total
  
                                                       
Residential real estate
                                                      
By payment activity status:
                                                      
Performing
  
$
16,371
    
$
58,726
    
$
97,228
    
$
85,394
    
$
34,809
    
$
102,282
    
$
-
    
$
-
    
$
394,810
  
Non-performing
    
-
      
-
      
-
      
185
      
188
      
2,443
      
-
      
-
      
2,816
  
Total residential real estate
    
16,371
      
58,726
      
97,228
      
85,579
      
34,997
      
104,725
      
-
      
-
      
397,626
  
Current period gross charge-offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
 
                                                                        
Commercial real estate
                                                                        
By internally assigned grade:
                                                                        
Pass
    
35,352
      
210,920
      
259,041
      
130,106
      
79,698
      
161,347
      
4,705
      
149
      
881,318
  
Special mention
    
-
      
505
      
2,519
      
476
      
682
      
7,714
      
1,031
      
-
      
12,927
  
Substandard
    
-
      
1,160
      
-
      
440
      
4,458
      
9,862
      
-
      
-
      
15,920
  
Total commercial real estate
    
35,352
      
212,585
      
261,560
      
131,022
      
84,838
      
178,923
      
5,736
      
149
      
910,165
  
Current period gross charge-offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
 
                                                                        
Home equity
                                                                        
By payment activity status:
                                                                        
Performing
    
1,554
      
3,155
      
375
      
521
      
370
      
1,638
      
17,747
      
55
      
25,415
  
Non-performing
    
-
      
-
      
-
      
-
      
-
      
3
      
49
      
-
      
52
  
Total home equity
    
1,554
      
3,155
      
375
      
521
      
370
      
1,641
      
17,796
      
55
      
25,467
  
Current period gross charge-offs
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
 
                                                                        
Consumer
                                                                        
By payment activity status:
                                                                        
Performing
    
1,046
      
1,772
      
1,019
      
486
      
205
      
114
      
93
      
-
      
4,735
  
Non-performing
    
-
      
-
      
43
      
-
      
-
      
-
      
-
      
-
      
43
  
Total Consumer
    
1,046
      
1,772
      
1,062
      
486
      
205
      
114
      
93
      
-
      
4,778
  
Current period gross charge-offs
    
110
      
-
      
8
      
4
      
-
      
-
      
-
      
-
      
122
  
 
                                                                        
Commercial
                                                                        
By internally assigned grade:
                                                                        
Pass
    
2,811
      
11,945
      
15,785
      
16,265
      
6,276
      
21,202
      
28,097
      
-
      
102,381
  
Special mention
    
-
      
-
      
1,739
      
-
      
1
      
486
      
306
      
-
      
2,532
  
Substandard
    
-
      
-
      
-
      
1,274
      
98
      
986
      
3,033
      
-
      
5,391
  
Total Commercial
  
$
2,811
    
$
11,945
    
$
17,524
    
$
17,539
    
$
6,375
    
$
22,674
    
$
31,436
    
$
-
    
$
110,304
  
Current period gross charge-offs
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
7
    
$
-
    
$
7
  
Loan balances by internal credit quality indicator at June 30, 2023:

(In thousands)
  
Performing
    
Special
Mention
    
Substandard
    
Total
  
Residential real estate
  
$
366,403
    
$
2,305
    
$
3,735
    
$
372,443
  
Residential construction and land
    
19,072
      
-
      
-
      
19,072
  
Multi-family
    
66,410
      
86
      
-
      
66,496
  
Commercial real estate
    
665,548
      
11,671
      
16,217
      
693,436
  
Commercial construction
    
121,958
      
-
      
-
      
121,958
  
Home equity
    
22,698
      
-
      
54
      
22,752
  
Consumer installment
    
4,530
      
-
      
82
      
4,612
  
Commercial loans
    
100,225
      
2,352
      
5,445
      
108,022
  
Total gross loans
  
$
1,366,844
    
$
16,414
    
$
25,533
    
$
1,408,791
  
Impaired Loans by Loan Portfolio Class
The tables below detail additional information on impaired loans at the date or periods indicated:

   
As of June 30, 2023
    
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
  
$
1,020
    
$
1,020
    
$
-
    
$
986
    
$
9
  
Commercial real estate
    
1,518
      
1,518
      
-
      
63
      
2
  
Home equity
    
-
      
-
      
-
     
128
      
-
  
Consumer installment
     -       -       -       5       -  
Commercial loans
    
334
      
334
      
-
      
344
      
4
  
Impaired loans with no allowance
    
2,872
      
2,872
      
-
      
1,526
    
15
  
                                       
With an allowance recorded:
                                        
Residential real estate
    
2,086
      
2,086
      
597
      
1,939
      
9
  
Commercial real estate
    
3,777
      
3,777
      
245
      
3,229
      
44
  
Commercial construction
    
-
      
-
      
-
      
102
      
-
  
Home equity
    
-
      
-
      
-
      
320
      
4
  
Commercial Loans
    
1,572
      
1,572
      
1,171
      
3,008
      
58
  
Impaired loans with allowance
    
7,435
      
7,435
      
2,013
      
8,598
      
115
  
                                         
Total impaired:
                                        
Residential real estate
    
3,106
      
3,106
      
597
      
2,925
      
18
  
Commercial real estate
    
5,295
      
5,295
      
245
      
3,292
      
46
  
Commercial construction
    
-
      
-
      
-
      
102
      
-
  
Home equity
    
-
      
-
      
-
      
448
      
4
  
Consumer installment     -       -       -       5       -  
Commercial loans
    
1,906
      
1,906
      
1,171
      
3,352
      
62
  
Total impaired loans
  
$
10,307
    
$
10,307
    
$
2,013
    
$
10,124
    
$
130
  
Loans Modified as Troubled Debt Restructuring
The table below details loans that have been modified as a troubled debt restructuring during the year ended June 30, 2023.

(Dollars in thousands)
  
Number of
Contracts
    
Pre-Modification
Outstanding
Recorded
Investment
    
Post-Modification
Outstanding
Recorded
Investment
    
Current
Outstanding
Recorded
Investment
  
For the year ended June 30, 2023
                        
Residential real estate
     2    
$
 778    
$
 778     $ 778  
Commercial real estate     3     $
 1,428     $
 1,480     $
 1,470  
Commercial loans
     1     $
379     $
379     $
-  
Activity and Allocation of Allowance for Loan Losses

The following tables set forth the activity and allocation of the allowance for credit losses on loans by segment:



   
Activity for the three months ended September 30, 2023
  
(In thousands)
  
Residential Real Estate
    
Commercial
Real Estate
    
Home Equity
    
Consumer
    
Commercial
    
Total
  
Balance at June 30, 2023
  
$
2,794
    
$
14,839
    
$
46
    
$
332
    
$
3,201
    
$
21,212
  
Adoption of ASU No. 2016-13
    
1,182
      
(2,889
)
    
117
      
137
      
121
      
(1,332
)
Charge-offs
    
-
      
-
      
-
      
(122
)
    
(7
)
    
(129
)
Recoveries
    
-
      
1
      
-
      
26
      
9
      
36
  
Provision
    
317
      
405
      
25
   
117
      
(402
)
    
462
  
Balance at September 30, 2023
  
$
4,293
    
$
12,356
    
$
188
    
$
490
    
$
2,922
    
$
20,249
  

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 June 30, 2023
Impairment Analysis
    
Ending Balance June 30, 2023
Impairment Analysis
  
(In thousands)
  
Individually
Evaluated
    
Collectively
Evaluated
    
Individually
Evaluated
    
Collectively
Evaluated
  
Residential real estate
  
$
 597    
$
 2,016    
$
 3,106    
$
 369,337  
Residential construction and land
     -       181       -       19,072  
Multi-family
     -       197       -       66,496  
Commercial real estate
     245       12,775       5,295       688,141  
Commercial construction
     -       1,622       -       121,958  
Home equity
     -       46       -       22,752  
Consumer installment
     -       332       -       4,612  
Commercial loans
     1,171       2,030       1,906       106,116  
Total
  
$
 2,013    
$
 19,199    
$
 10,307    
$
 1,398,484  
Foreclosed Real Estate The following table sets forth information regarding FRE at:

(in thousands)
  
September 30, 2023
    
June 30, 2023
  
Commercial loans
  
$
302
    
$
302
  
Total foreclosed real estate
  
$
302
    
$
302